FIMA Daily Insight

Tuesday, June 09, 2015 Croatia Croatian equities closed lower yesterday with both indices decreasing; CROBEX decreased 0.29% to 1,737.02 pts and blue chip CROBEX 10 declined 0.34% to 1,020.66 pts. Regular stock ZAGREB STOCK EXCHANGE turnover amounted to HRK 10.8 million. (Negative) Tobacco and tourism Adris group (ADRSPA CZ) topped the liquidity board collecting HRK 2.9 CROBEX Last 1.737,02 million in turnover while its price increased 0.53 % to HRK 382.0. daily -0,29% Croatia's exports increased by 9.7% in 1Q 2015 compared with the same period of 2014, while YTD -0,48% imports increased by 7.2%, according to figures from the National Bureau of Statistics (DZS) released on Monday. This is a slightly higher growth of imports and exports compared to the CROBEX10 Last 1.020,66 preliminary figures. (Positive) daily -0,34% Tourist arrivals in Zagreb city and on Croatia's Adriatic coast rose 12% to 2.7 mln through May with overnights up 14% to 7.3 mln, the country's tourism ministry said. (Positive) YTD 1,34% According to media, Prvo plinarsko društvo (PPD) and Hungaryan MET, companies associated Stock Turnover (EUR m) 1,37 with MOL are expected to place offers for takeover of Petrokemija (PTKMRA CZ). In March, the government reached an agreement with INA and PPD on their entry in Petrokemija so that the MkCap(%of GDP) 56,91% debt could be converted into shares, and a month ago arrived the letter of intent, but instead of Source:www.zse.hr INA, MET handed over the letter of intent. Petrokemija owes to each company HRK 160 mln and supposedly, the government will offer them 44% stake in Petrokemija or possibly even the majority stake. (Positive) LJUBLJANA STOCK EXCHANGE In May 5,000 new passenger cars were sold, which is 33.4% more than in April and a 2.7% increase yoy. (Positive) SBI TOP Last 788,82 On June 5, Management Board of Tankerska Next Generation (TPNGRA CZ) passed the daily -0,29% decision to increase the share capital against contributions in cash and issuance of shares (1.3-1.6 mln new ordinary shares). With this decision, the Company's share capital increases YTD 0,60% from HRK 360 mln up to HRK 440 mln. (Positive) Stock Turnover (EUR m) 0,60 Badel 1862 [ZSE:BD62-R-A] decided to cancel a tender called to find a strategic partner for the MkCap(%of GDP) 50,95% company. In March, Badel 1862 invited bids in a renewed attempt to secure a strategic tie-up and recapitalization as part of the company's pre-bankruptcy proceedings. The company's Source:www.ljse.si management will continue with intensive activities to complete the pre-bankruptcy proceedings and achieve capital adequacy. (Neutral) The privatization of HEP is questionable because of a dispute with the state over the evaluation BELGRADE STOCK EXCHANGE of hydro power plants and associated infrastructure that are according to law in state ownership. Without a clear status of HEP hydropower plants it is impossible to determine the real price of BELEX15 Last 697,36 the shares. (Negative) daily -0,06% Slovenia YTD 4,55% Slovenia's state investment fund will decide on Wednesday whether to sell the country's largest BELEXline Last 1.431,36 telecoms network operator Telekom Slovenia to private equity investment firm Cinven. Cinven has offered up to EUR 130 per share for state-owned Telekom, valuing the company at EUR 850 daily 0,24% mln. Slovenia's Prime Minister Miro Cerar said SDH should decide on the sale, adding that he expected the investment firm, which is coordinating the country's privatization program, would YTD 6,44% approve the sale. (Positive) Stock Turnover (EUR m) 0,16 The European Commission said it has concluded that restructuring aid of EUR 97 mln, which MkCap(%of GDP) 23,69% Slovenia plans to grant to automotive components manufacturer Cimos Group, complies with EU state aid rules. The Commission said in a statement it found that Cimos' restructuring plan will Source:www.belex.rs allow the company to become viable again in the long-term without needing further state support, and without unduly distorting competition in the single market. (Positive) Telekom Austria is buying Slovenian telecoms operator Amis to expand its business in Slovenia BUCHAREST STOCK EXCHANGE and Croatia. The Austrian firm declined to comment on media reports it was paying EUR 30 mln BET Last 7.398,58 for Amis. (Neutral) Serbia daily -0,57% French consultancy company, Lazard, should come out with a proposal on privatization model for YTD 4,46% Telekom Srbija these days. Lazard will probably come out with several options while the BET BK Last 1.370,25 government should decide which one is the most acceptable. Workers at Telekom believe that Serbia should keep controlling stake or at least veto possibility for important decisions, daily -0,42% Joksimovic said. (Neutral) YTD 4,74% Galenika is still looking for a new owner, and we are ready to talk with anyone who wants to help and contribute to the restart and continuation of production at this company. He noted that BET TR Last 8.074,54 the management of Galenika was doing everything to solve problems from the past and start daily -0,57% achieving good results. (Positive) YTD 4,39% Romania Romania’s Energy Ministry needs to receive dividends of EUR 360 mln from the companies where Stock Turnover (EUR m) 4,1 it has shares, for 2014. The amount increased by 8.47% compared to 2013. The states needs to MkCap(%of GDP) 21,47% receive EUR 191 mln from gas producer Romgaz, EUR 73 mln from power maker Hidroelectrica, some EUR 29 mln from oil & gas producer OMV Petrom and EUR 26 mln from Romanian Source:www.bvb.ro electricity distributor Electrica, local media reported. (Positive)

International ratings agency Fitch Ratings has upgraded Romanian lender Banca Transilvania for long-term debt to BB. It has also confirmed the ratings of lenders UniCredit Tiriac Bank to BBB, ProCredit Bank Romania to BBB- and Garanti Bank to BB+. The ratings of Banca Transilvania, UniCredit Tiriac Bank and ProCredit Bank Romania are stable, whereas Garanti Bank’s rating is under supervision for a possible upgrade. (Positive)

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FIMA Daily Insight

Tuesday, June 09, 2015

TOP 5 Companies ZAGREB STOCK EXCHANGE 08 June 2015 turnover (HRK) by price - Gainers (CROBEX) by price - Decliners (CROBEX)

Symbol Price Volume (mln) Change Symbol Price Change Symbol Price Change ADRS-P-A 382,00 2,85 0,53% LRH-R-A 4.200,00 3,70% DDJH-R-A 26,25 -9,01% PODR-R-A 314,11 1,25 0,62% HUPZ-R-A 1.899,99 2,62% ERNT-R-A 1.193,41 -6,69%

ADRS-R-A 480,50 1,10 0,51% LKPC-R-A 705,00 1,36% ATPL-R-A 195,30 -4,50%

ERNT-R-A 1.193,41 0,90 -6,69% RIVP-R-A 20,70 0,88% HMST-R-A 201,02 -4,28% RIVP-R-A 20,70 0,77 0,88% ZABA-R-A 36,79 0,66% HIMR-R-A 410,00 -1,20%

TOP 3 Companies LJUBLJANA STOCK EXCHANGE 08 June 2015 turnover (EUR) by price - Gainers by price - Decliners

Symbol Price Volume (000) Change Symbol Price Change Symbol Price Change KRKG 68,01 252 0,01% TLSG 101,50 2,53% TCRG 36,65 -3,81%

TLSG 101,50 86 2,53% SALR 358,00 0,85% GRVG 5,70 -2,36%

CICG 196,00 73 -1,95% ZDDG 3,20 0,28% CICG 196,00 -1,95%

TOP 3 Companies BELGRADE STOCK EXCHANGE 08 June 2015

turnover (RSD) by price - Gainers by price - Decliners Symbol Price (RSD) Volume (000) Change Symbol Price Change Symbol Price Change

JESV 5.965,00 10.964 8,45% JESV 5.965,00 8,45% KMBNPB 1.215,00 -3,03% NIIS 705,00 3.844 -1,67% DNOS 839,00 4,88% NIIS 705,00 -1,67% AERO 1.324,00 534 -0,30% EGMN 3.100,00 3,33% TIGR 74,00 -1,33%

TOP 3 Companies BUCHAREST STOCK EXCHANGE 08 June 2015 turnover (RON) by price - Gainers by price - Decliners

Symbol Price (RON) Volume (000) Change Symbol Price Change Symbol Price Change TLV 2,48 5,113 -0,04% ELMA 0,22 4,76% PTR 0,3406 -7,95%

TEL 26,94 2,558 -1,32% IMP 1,32 4,76% DAFR 0,009 -7,22%

FP 0,86 2,433 -0,46% ALR 1,2 3,27% OIL 0,0876 -3,95%

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FIMA Daily Insight

Tuesday, June 09, 2015

GDP Unemployment & CPI 4,00 25,00

3,00 20,00 2,00 1,00 15,00 % 0,00 % 10,00 -1,00 -2,00 5,00 -3,00 0,00 -4,00 Croatia Slovenia Serbia Romania -5,00 Croatia Slovenia Serbia Romania 2013 1Q14 2Q14 3Q14 2014 2015e Unemployment December 2014 CPI January 2015 m/m

Long-term credit Croatia Slovenia Serbia Romania rating

Fitch BB BBB+ B+ BBB-

Standard&Poors BB A- BB- BBB-

Moody's Ba1 Ba1 B1 Baa3

Exchange rates

FX RATE HRK per EUR 0,1300

FX RATE RSD per EUR 0,0083

FX RATE RON per EUR 0,2300

FX RATE EUR per USD 1,0800

Investment stories

Hotel Imperial (HIMR-R-A) - privatization process in final stage

Telekom Slovenije (TLSG) - privatization process in second stage

Corporate events

08.06.2015 Ericsson Nikola Tesla (ERNT-R-A) – Ex-dividend date

09.06.2015 Ericsson Nikola Tesla (ERNT-R-A) – Record date

19.06.2015. Ericsson Nikola Tesla (ERNT-R-A) – Cash dividend: HRK 90.0 20.06.2015 Končar – Elektroindustrija (KOEI-R-A) – Cash dividend: HRK 12.0

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FIMA Daily Insight

Tuesday, June 09, 2015

CONTACTS FOR INSTITUTIONAL INVESTORS IRENA IVANKOVIĆ IRENA IVANKOVIĆ IRENA IVANKOVIĆ DARKO HORVAT DARKO HORVAT DARKO HORVAT TRADING DEPARTMENT: TRADING DEPARTMENT: TRADING DEPARTMENT: [email protected] [email protected] [email protected] RESEARCH DEPARTMENT: RESEARCH DEPARTMENT: RESEARCH DEPARTMENT: HANA HORVAT HANA HORVAT HANA HORVAT

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