FIMA Daily Insight

Tuesday, October 14, 2014

Croatian equities closed lower yesterday with both indices decreasing; CROBEX STOCK EXCHANGE decreased 0.85% to 1,864.92 pts and blue chip CROBEX 10 declined 1.06% to CROBEX Last 1.864,92 1,066.03 pts. Regular stock turnover amounted to HRK 9.4 million. (Negative) daily -0,85 Tourism company Valamar Riviera (RIVPRA CZ) topped the liquidity board YTD 3,94% collecting HRK 1.2 million in turnover and its price increased 0.05% to HRK 20.18. CROBEX10 Last 1.066,03 Croatia's trade deficit stood at a preliminary 35.5 billion kuna ($5.88 billion/4.64 daily -1,06 billion euro) in the first eight months of the year, down from 37.16 billion kuna a YTD 7,15% year earlier, the State Statistics Office said. (Positive) Stock Turnover (EUR m) 1,21 Croatia’s leading confectionery company Kras (KRASRA CZ) have started exporting MkCap(%of GDP) 56,91% its products to South Korea, and currently about to send a shipment to Japan, the Source:www.zse.hr Zagreb-based company said on Monday. Nearly 50% of Kraš revenue is from foreign markets, which include countries in the region, the EU and overseas. The highest growth markets for Kras are Saudi Arabia, USA, Canada and Australia. Last LJUBLJANA STOCK EXCHANGE year Kras started exporting to North Africa, and now to Korea and Japan, said CEO SBI TOP Last 813,23 Damir Bulić. (Positive) daily -0,94% Croatian diversified holding company Djuro Djakovic [ZSE:DDJH-R-A] said that YTD 24,03% successful implementation of restructuring plan require recapitalization up to a Stock Turnover (EUR m) 1,72 maximum of HRK 194.22 mln. (Positive)

MkCap(%of GDP) 50,95% Source:www.ljse.si At the 17th session held on October 13th, the Supervisory Board of Pivovarna Laško, d.d., confirmed the Laško Group Strategy for the period 2015–2019. The BELGRADE STOCK EXCHANGE strategy anticipates growth in terms of volume and revenue. Revenue from sales of BELEX15 Last 686,40 products and services will grow by an average of 1.8% per year to a planned amount of EUR 175.5 million by 2019. The capital increase process will continue as daily -0,44% well. It is expected to be completed in the year of 2015, with new contributions YTD 23,02% amounting to EUR 75 million or more. Divestment of subsidiaries Delo and BELEXline Last 1.368,33 Radenska will continue as per the Restructuring and Standstill Agreement signed daily -0,20% by the Laško Group with creditor banks in late April of 2014. (Positive) YTD 23,84% In accordance with the resolution from the Abanka Vipa 29th General Meeting, the Stock Turnover (EUR m) 0,45 Slovenian government paid up 100,000 new shares valued at EUR 243 million. The MkCap(%of GDP) 23,69% increase in the Bank’s share capital in the amount of EUR 1,000,000 was entered in the companies register on 10 October 2014. On 13 October 2014, Abanka signed Source:www.belex.rs an agreement with the Bank Asset Company (BAMC) on the implementation of measures to strengthen the bank’s stability, an agreement on BUCHAREST STOCK EXCHANGE the management of assets in connection with measures to strengthen the bank’s stability and an agreement on the provisions of services in connection with BET Last 6.978,15 measures to strengthen the bank’s stability. (Positive) daily -0,46% YTD 7,46% Serbia's consumer prices rose 0.7% in September after a 0.2% decrease in August, BET BK Last 1.282,17 the country's statistics bureau said. (Negative) daily -0,27% Romania YTD 1,62% Non-bank financial institutions (NBFI), a segment that includes consumer finance BET TR Last 7.620,31 and leasing companies, posted about 300 million lei (EUR68 million) aggregate daily -0,46% profit in the first half, double the year-ago level, according to the annual financial YTD 12,79% stability report of Romania's central bank. (Positive) Stock Turnover (EUR m) 6,63 Romania´s Fondul Proprietatea acquired 23.83 million shares in the first 9 days of MkCap(%of GDP) 21,47% the 4th buy-back program out of a total of 990.86mn shares. (Positive)

Source:www.bvb.ro Romania will raise the gross minimum wage to RON975 as of January 1, 2015,

from the recurrent RON900, Labor Minister Rovana Plumb said on Monday at the Mediafax Talks about Private Pensions conference. (Positive) f For more information please contact us via mail [email protected] or on tel. +385 42 66 09 64 1

FIMA Daily Insight

Tuesday, October 14, 2014

TOP 5 Companies ZAGREB STOCK EXCHANGE 13 October 2014 turnover (HRK) by price - Gainers (CROBEX) by price - Decliners (CROBEX)

Symbol Price Volume (mln) Change Symbol Price Change Symbol Price Change RIVP-R-A 20,18 1,23 0,05% KRAS-R-A 355,00 1,41% JDPL-R-A 102,17 -7,95% ATPL-R-A 331,90 0,92 -4,08% THNK-R-A 435,99 0,69% ATPL-R-A 331,90 -4,08%

HT-R-A 161,14 0,71 -0,61% PODR-R-A 324,98 0,30% INA-R-A 3.800,00 -2,56% ADRS-P-A 333,06 0,62 -2,08% ERNT-R-A 1.395,00 0,21% BLJE-R-A 40,00 -2,44%

LKPC-R-A 571,00 0,60 -0,35% PTKM-R-A 27,54 0,11% ADRS-P-A 333,06 -2,08%

TOP 3 Companies LJUBLJANA STOCK EXCHANGE 13 October 2014 turnover (EUR) by price - Gainers by price - Decliners

Symbol Price Volume (000) Change Symbol Price Change Symbol Price Change

PILR 24,00 973 3,36% PILR 24,00 3,36% TCRG 50,00 -5,66% KRKG 63,20 285 -1,25% IALG 66,64 0,03% ZTOG 130,00 -3,60%

ZVTG 25,24 154 -2,13% AELG 60,86 0,02% MLHR 7,00 -3,45%

TOP 3 Companies BELGRADE STOCK EXCHANGE 13 October 2014

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

ALFA 16.001,00 7.520 1,66% VDAV 5.200,00 15,56% KMBN 2.300,00 -3,77% KMBN 2.300,00 6.900 -3,77% TIGR 110,00 13,40% AERO 829,00 -2,13%

NIIS 896,00 5.924 -0,33% VITL 855,00 7,01% VZAS 490,00 -1,01%

TOP 3 Companies BUCHAREST STOCK EXCHANGE 13 October 2014

turnover (RON) by price - Gainers by price - Decliners

Symbol Price (RON) Volume (000) Change Symbol Price Change Symbol Price Change

FP 0,92 11.637 -0,70% CBC 5,500 8,91% CEON 0,76 -9,20%

TGN 231,00 2.195 0,00% DAFR 0,021 5,50% ARTE 9,5 -5,00% SNP 0,44 2.170 -0,68% APC 0,690 4,70% COTE 49,02 -3,03%

For more information please contact us via mail [email protected] or on tel. +385 42 66 09 64 2

FIMA Daily Insight

Tuesday, October 14, 2014

Unemployment & CPI GDP 30,0% 4,0

25,0% 3,0 20,0% 2,0 15,0% % 1,0 % 10,0% 0,0 5,0%

-1,0 0,0% -2,0 -5,0%

Croatia Slovenia Serbia Romania Croatia Slovenia Serbia Romania

GDP 2013 GDP 1Q 2014 2014e Unemployment May 2014 CPI June 2014 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 0,1306

FX RATE RSD per EUR 0,0086

FX RATE RON per EUR 0,2300

FX RATE EUR per USD 1,3400

Investment stories

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

Telekom Slovenije (TLSG) - privatization process in second stage

Riviera Valamar (RIVP-R-A) – plans involve the listing on the regulated

Corporate events

24.10.2014 Liburnia Riviera Hoteli (LRH-R-A) – General Assembly 30.10.2014 (HT-R-A) – Results for 3Q 2014 30.10.2014 Atlantic Grupa (ATGR-R-A) – Results for 3Q 2014

30.10.2014 (PODR-R-A) – Results for 3Q 2014

17.11.2014 Valamar Riviera (RIVP-R-A) – General Assembly

For more information please contact us via mail [email protected] or on tel. +385 42 66 09 64 3

FIMA Daily Insight

Tuesday, October 14, 2014

CONTACTS FOR INSTITUTIONAL INVESTORS

IRENA FIŠTREK [email protected] +385 42 66 09 64

KREŠIMIR ČULO [email protected] +385 1 63 98 357 TRADING DEPARTMENT: [email protected] +385 42 66 09 60 RESEARCH DEPARTMENT:

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

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. This publication has not been prepared in compliance with the provisions of the Capital Market Act, and the Regulations of the Croatian Agency for Supervision of Financial Services (HANFA) ensuring independence of investment research, as also the issuance of the publication has not been subject to trading ban prior to distribution, as it has usually been foreseen for investment researches. According to the previously stated regulations this publication is considered to be promotional communication. All significant sources of information used in preparing of this publication were stated in its text. In preparing this publication the results of the fundamental and technical analysis may be used including also internally developed evaluation models. If it is the case of an internally developed evaluation model, the basic methodology shall be presented and publicly available to the investors at the Company's web page www.fima- vrijednosnice.hr or in the other legally permitted manner. The seat of the Company FIMA Securities Ltd. is in Varaždin, Vrazova 25, whereas the operating of the Company has been supervised by the Croatian Agency for Supervision of Financial Services. The company was entered into the Court Register of the Commercial Court in Varaždin under the number: 070052968. Protection of copyright and database records exist in this Document, and the same must not be reproduced, distributed or published by anyone regardless the intention, without previous express consent of the Company FIMA Securities Ltd. Please state the source in case of citing. All rights reserved. FIMA Daily Insight is prepared by the employees of FIMA Securities Ltd. The first issue of FIMA Daily Insight was issued on 16TH January 2009

Additional information is available upon request.

For more information please contact us via mail [email protected] or on tel. +385 42 66 09 64 4