Company of Added Value

2016 PRODUCTION DISTRIBUTION +

= Leading regional manufacturer and distributor of FMCG — distribution — production facilities — product presence — employees on 18 centres 19 in 6 countries 40 on over 40 markets 5400 12 markets

. Among the leading food and beverage companies in the SEE region . Founded in 1991 . Listed on the Stock Exchange since 2007 . MCap (07/10/2016): EUR 391m . FY15 sales: EUR 711m . FY15 EBITDA: EUR 75m

3 DEVELOPMENT OF ATLANTIC GRUPA European company Regional company National company 2005-2015 2000-2004 1990’s  2015: New energy bars factory  2010: Acquisition of DROGA  Regional expansion  Distribution centres across KOLINSKA

VERTICAL VERTICAL  Several small-size acquisitions  2001: Acquisition of CEDEVITA INTEGRATION  Various distribution cooperations PRODUCTION

DISTRIBUTION & DISTRIBUTION  2007: IPO DISTRIBUTION  2005: Acquisition of MULTIPOWER

Sales in EURm

711 CAGR 1993-2015: 673 700 649 665 +31.2% 622 594 600

DROGA 500 KOLINSKA

400 MULTIPOWER 289 299 300 264 220 CEDEVITA 183 200 143 80 89 100 100 61 27 33 36 41 1 6 12 17 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2010* 2011 2012 2013 2014 2015

2010*: Pro-forma consolidated with Droga Kolinska

HISTORICAL DEVELOPMENT: TRACK RECORD IN VALUE CREATION 5 Cedevita (2001) Multipower Haleko (2005) Droga Kolinska (2010) Capability to successfully execute spin-off Capability to successfully execute Capability for successfully acquiring and turnaround and provide the acquired cross-border transactions in larger companies, utilizing leveraged products with new markets and distribution developed markets and entering new structures and integrating complex channels distribution channels (sport channel) businesses

Sales volume (tonnes), 2001 and Total revenues, EURm Atlantic Grupa - 2010 and 2015 2015 2005 2010 2015 2020 CAGR 6.2% 333 CAGR 6.5% 400 6.0 10,208 221 12,000 120 101 3.0 4.0 4.7 8,000 100 200 4,206 70 2.0 80 59 75 4,000 60 0 0.0 40 0 2010 2015 2001 2015 20 0 EBITDA Net debt Net debt/EBITDA 2006 2015 Vitamin instant drink On the GO HoReCa

ATLANTIC GRUPA’S TRANSFORMATIONAL ACQUISITIONS 6 New energy bars factory in Nova Gradiška Acquisition of Foodland d.o.o.

 In-housing energy bars production (Nova Gradiška, Croatia)  Production of high-quality products under own brands Granny’s from outsourced production in Germany Secret and Amfissa  Project with the total value of EUR 13 million, the largest  Own production facility in Igroš, southern individual investment in Atlantic Grupa’s history  Sales of EUR 6 million in 2015  Created 50 new jobs (160 planned in total)  Expected positive impact on the improvement in operating profitability of the SBU SFF, tax benefits and incentives expected over the project duration

 International expansion potential  Granny’ Secret with its palette of supreme quality products prepared in a traditional way meets both strategic goals: expanding the current portfolio with international potential and internationalization  Regional expansion  Using the strength of AG’s distribution network and infrastructure to increase distribution reach of brand Granny’s Secret across the region

RECENT BUSINESS DEVELOPMENT 7 ATLANTIC GRUPA TODAY 9 PORTFOLIO OVERVIEW 9 Barcaffe/ share Argeta Smoki Cedevita Grand kafa Value share 2016 2015 2014 2016 2015 2014 2016 2015 2014 2016 2015 2014 Croatia 13.2% 13.3% 10.4% 25.0% 23.1% 17.3% 18.2% 18.2% 17.2% 78.5% - 79.1% Serbia 52.3% 52.0% 51.3% 23.2% 20.4% 19.3% 54.9% 57.4% 56.7% 73.7% 73.0% 72.2% 77.3% 75.9% 76.3% - 41.0% 41.8% 46.2% 41.6% 43.0% 86.0% - 80.9% B&H 26.2% - - - 50.3% 50.1% 36.1% 39.1% 39.1% 80.9% 77.4% 79.3%

Source: Nielsen Retail Panel for food and non-food categories

Top 10 Slovenia Top 10 Croatia Top 10 Serbia Top 10 B&H Top 10 Macedonia

1 Barcaffe Jana Plazma Argeta Argeta 2 Milka Cedevita Smoki Milka Milka 3 Radenska Vegeta Milka Coca Cola Stobi flips 4 Coca Cola Jamnica Coca Cola Cedevita Vegeta 5 Argeta Coca Cola Knjaz Miloš Violeta Coca Cola 6 Alpsko mleko Milka Moja kravica jogurti Smoki Orbit 7 Cocta Gavrilović pašteta Dijamant ulje Jaffa cakes Bitolski jogurti 8 Fructal Franck kava Začin C Vegeta Pelisterka 9 Cedevita Dukat jogurti Fairy Orbit Nescafe 10 Perutnina Ptuj meso Nivea Orbit Nivea Pepsi Source: Valicon survey 2016

BRANDS STRUCTURING 10 INTERNATIONAL

REGIONAL

LOCAL

BRANDS STRUCTURING 11 DISTRIBUTION STRENGTH OF DISTRIBUTION . Developed network with 18 distribution centers . Direct access on over 60,000 sales points in SEE . Over 1,000 delivery vehicles

DISTRIBUTION 13 DISTRIBUTION

ZONE WEST ZONE EAST

Leading Distributor of Multinational Brands

Atlantic Grupa is one of leading distributors of high-quality top FMCG brands (both own and principal) in SEE

DISTRIBUTION 14 CROATIA SERBIA SLOVENIA MACEDONIA

 Established: 1991  Headquarter Belgrade  Headquarter Ljubljana  Headquarter  Headquarter: Zagreb  4 Distribution centres (Novi Sad,  1 Distribution centre  1 Distribution centre  Distribution centres: 4 (Zagreb, Belgrade, Čačak, Niš)  Logistics: BTC  95 vehicles , Osijek, Split)  260 vehicles  Distribution coverage  Storage: 2,580 m2  Vehicles: 225  13.920 m2 warehouse space increased in HoReCa  HoReCa channel –  Warehouse space: 21,000 pal  HoReCa channel - growth of („Barcaffe-on-the go” at gas continuously  Distribution coverage increased in installed espresso machines stations) strengthening HoReCa („Barcaffe-on-the go” at gas stations)

Portion of brands within portfolio (in Portion of brands within portfolio (in Portion of brands within portfolio Portion of brands within addition to own brands): addition to own brands): (in addition to own brands): portfolio (in addition to own brands):

STRATEGIC DISTRIBUTION UNITS – ZONE EAST 15 SDR CIS & BALTIC STRATEGIC DISTRIBUTION UNIT ZONE WEST

 Russia and neighbouring countries (region of the Commonwealth of  Atlantic Grupa’s goal is to continue to increase the presence in Independent States, CIS) are becoming increasingly important for international markets the business development of Atlantic Grupa  The market entry strategy in international markets is based on:  This distribution unit is responsible for the distribution of all brands that have the potential to achieve above average growth in the  Local market structures operating directly with the leading market retail chains  Approximately 70% of products sold within this unit relate to brand  Cooperating with long-standing distribution partners in Bebi, while the remaining portfolio includes Donat Mg, Multivita, order to optimise the availability of products to consumers Argeta, Multipower

The key Atlantic Grupa’s brands for the distribution The key Atlantic Grupa’s brands for the distribution in in Baltic & CIS are: international markets are:

STRATEGIC DISTRIBUTION REGION AND UNIT – SDR CIS & BALTIC AND ZONE WEST 16 SALES PROFILE Sales 2015 (EUR 711m) Sales 2010 (EUR 302m) Other Other markets Russia markets Russia 9.2% and CIS 6.2% and EE 4.4% 1.8% Key European Croatia markets 26.1% 11.2% Germany, UK, Italy 14.9%

Other regional markets Croatia 6.0% Other regional markets Bosna and 5.6% 55.2% Herzegovina 7.1% Slovenia Serbia 7.6% 23.2% Serbia Slovenia 5.7% 15.8%

GDP change, const. prices 2011 2012 2013 2014 2015 2016F Key Takeaways Croatia -0.3 -2.2 -1.1 -0.4 1.7 1.9 Serbia 1.4 -1.0 2.6 -1.8 0.7 1.8  SEE region:  Regional  Atlantic Grupa’s revenue Slovenia 0.6 -2.7 -1.1 3.0 2.9 1.9 Structural economic streams diversified with new Germany 3.7 0.6 0.4 1.6 1.5 1.5 reforms and recovery in acquisitions: Russia 4.3 3.4 1.3 0.6 -3.8 -1.9 deleveraging 2015 Unemployment rate 2011 2012 2013 2014 2015 2016F underway  Multipower (2005): exposure Croatia 13.3 15.2 17.0 17.1 16.9 16.4  Outside of to Western Europe Serbia 23.6 24.6 23.0 19.7 18.5 18.7  Internal Russia,  Droga Kolinska (2010): Slovenia 8.2 8.9 10.1 9.7 9.1 7.8 devaluation CIS and regional diversification and Germany 5.9 5.4 5.2 5.0 5.0 4.6 caused by Russia 6.5 5.5 5.5 5.2 5.8 6.5 long Serbia greater exposure to Russia CPI (avg) 2011 2012 2013 2014 2015 2016F recession currencies and CIS Croatia 2.3 3.4 2.2 -0.2 -0.5 0.4 increased remain  Strategy going forth: to reduce Serbia 11.1 7.3 7.7 2.1 1.4 1.7 competitiven stable dependancy on the SEE region Slovenia 1.8 2.6 1.8 0.2 -0.5 0.1 ess of local with growth coming from Germany 2.5 2.1 1.6 0.8 0.1 0.5 production Western Europe and Russia/CIS Russia 8.4 5.1 6.8 7.8 15.5 8.4 International Monetary Fund, World Economic Outlook Database, April 2016

GEOGRAPHIC PRESENCE AND MACROECONOMIC ENVIRONMENT 18 Sales by segments 2015 Key market considerations (EUR 711m) Baby  Stable demand growth despite stagnation in overall Sporst Food 2.9% consumption and Principal Functiona brands  Rise in private label (convergence towards EU levels) l Food 19.7% Demand for differentiated and innovative products 14.2%   Retail consolidation Pharma and  Reduced availability of shelf space Personal Care 9.1%  Strong competition from both local and regional FMCG players as well as large FMCG multinationals Savoury Coffee Spreads 20.1% 10.0% Atlantic Grupa’s strengths Snacks 11.7% Beverages 12.3%  Well diversified product portfolio – less revenue volatility and higher bargaining power  Constant product and marketing innovations (Cedevita on Sales by brands 2015 the go, Black’n’Easy etc.) (EUR 711m)  Strong regional distribution network – better access to shelf and HoReCa space Farmacia  Even though key market categories were stagnating or Private 6.2% falling in volume in 2015, AG’s market shares are growing label 8.8% AG BRANDS WITH SALES OVER EUR 15m in 2015

Principal brands 19.7%

Own brands 65.3%

SALES PROFILE AND BUSINESS ENVIRONMENT 19 Sales, EUR millions Margin overview

720 711 14.0% 11.8% 11.1% 11.5% 12.0% 11.8% 700 12.0% 673 680 658 10.0% 8.2% 8.6% 8.7% 10.5% 660 649 7.5% 7.5% 8.0% 6.2% 640 622 6.0% 4.2% 4.5% 620 4.0% 594 4.0% 2.8% 2.3% 600 1.5% 580 2.0% 560 0.0% 540 Pro forma 2011 2012 2013 2014 2015 520 cons 2010 Pro forma 2011 2012 2013 2014 2015 cons 2010 EBITDA margin EBIT margin Net profit/loss margin

Net debt/EBITDA ROaE, ROCE 12.7% 12.5% 6.0 14.0% 11.8% 11.7% 12.0% 10.4% 4.7 4.8 9.4% 5.0 10.0% 12.7% 12.4% 13.1% 4.2 11.3% 8.0% 4.0 3.5 3.2 6.0% 3.0 7.6% 3.0 4.0% 2.0% 4.7% 2.0 0.0% Pro forma 2011 2012 2013 2014 2015 1.0 cons 2010 0.0 Pro forma 2011 2012 2013 2014 2015 cons 2010 ROaE ROCE

HISTORICAL DEVELOPMENT OF KEY FINANCIAL INDICATORS 20 Board Ownership structure as of October 5th 2016

Emil Tedeschi Founder / President of the Others Management Board 10.7%

Emil Croatian pension funds Tedeschi 30.1% 50.2%

Mladen Veber Zoran Stanković Neven Vranković Senior Vice President Vice President Vice President Business Operations Finance Corporate Affairs Lada Management Tedeschi 1.2% EBRD Fiorio 2.0% 5.8% ATLANTIC GRUPA - THE BEST MANAGED COMPANY IN 2015 Free float: 38.0% (according to the Zagreb st 1 in CROATIA Stock Exchange, free float does not include: treasury 2nd in the CEE region shares, shares in sole ownership over 5%, unless they are owned by pension st 1 in the FOOD & BEVERAGE funds) sector in the CEE

EXPERIENCED MANAGEMENT TEAM AND STABLE OWNERSHIP STRUCTURE 21 Performance on capital market ATGR-R-A Crobex Crobex10

48%

40% 31% 34% 18% 19% 18% 16% 7% 10% 6% 5% 1% 3% 2% 0% 0% -1% -1% -3% -3% -11% -18%-15% -40% -38% -47%

-80% -67% 07.10.2016. 2015 2014 2013 2012 2011 2010 2009 2008

Valuation 30.06.2016.** 30.06.2015.** 31.12.2015. Last price in reporting period 811.6 890.0 832.9 Market capitalization* (in HRK millions) 2,706.1 2,967.5 2,777.1 Average daily turnover (in HRK thousands) 985.7 1,400.6 895.9 EV (in HRK millions) 4,484.2 4,795.0 4,457.7 EV/EBITDA 8.2 8.3 7.9 EV/EBIT 11.5 11.5 11.0 EV/sales 0.8 0.9 0.8 EPS (in HRK) 69.7 63.8 72.7 P/E 11.6 14.0 11.5 *Closing price multiplied by the total number of shares **Data on LTM basis

PERFORMANCE ON CROATIAN CAPITAL MARKET 22 FINANCIAL OVERVIEW 2015/ Highlights from 2015 results: EURm 2012 2013 2014 2015 2014  Sales growth in all regional markets (Croatia, Serbia, Slovenia, Revenues 665 663 680 717 5.5% and Macedonia), due both own brands and principal sales growth, which confirmed the position of Atlantic Grupa as a leading distributor in the region. Sales 657 658 673 711 5.6%  Decline in sales in Russia and CIS markets primarily due to EBITDA 74 78 79 75 (5.0%) strong rouble depreciation and political instability in Ukraine.

 EBITDA lower by 5.0% due to restructuring costs in the Sports EBIT 53 56 58 53 (8.3%) and functional food segment, the consolidation of the acquired company Foodland, the decrease of sales and pressure on profit Net profit 15 26 28 32 13.6% margins in CIS countries, the investments in setting up the distribution companies in Germany and Austria, and the increase in costs of some of the main raw materials. EBITDA margin 11.3% 11.8% 11.7% 10.5% -117 bp  Continued deleveraging: net debt repayment amounted to EUR 32.9m with net debt/EBITDA of 3.0 as at 31 December 2015.  In 2015 Atlantic Grupa finished the construction of new energy EBIT margin 8.1% 8.5% 8.6% 7.5% -114 bp bar factory in Nova Gradiška with the total value of the investment of EUR 13m. Net profit margin 2.3% 4.0% 4.2% 4.5% +32 bp  The regional business environment was marked with Agrokor’s acquisition of Mercator, which resulted in entrance of the entire ROaA 2.1% 3.9% 4.1% 4.6% +47 bp portfolio of Atlantic Grupa (including Argeta and Barcaffe) in Konzum’s stores. ROaE 7.6% 12.7% 12.4% 13.1% +66 bp  Costs of production materials increased by 10.9% in 2015, primarily as a result of the increase in prices of raw coffee (14% to 29% higher average coffee prices comparing to 2014). By continuous ROaCE 10.4% 11.7% 12.7% 12.5% -26 bp hedging, in 2015 Atlantic Grupa reduced the effects of higher prices of raw coffee. ROaCE is calculated as EBIT/(Average (Total Equity+LT debt-Cash))

FINANCIAL OVERVIEW 2015 (1/2) 24 Equity and liabilities structure (in EUR millions) 2012 2013 2014 2015 December 31st 2015

Net debt 310 271 254 221 Other Total assets 678 669 694 697 liabilities Long term 5.9% Total Equity 192 220 231 256 borrowings 23.9% Current ratio 1.8 1.8 1.5 1.3 Capital and Gearing ratio 61.7% 55.2% 52.3% 46.3% reserves Short term 36.3% Net debt/EBITDA 4.2 3.5 3.2 3.0 borrowings 12.3% Interest coverage ratio 2.6 3.7 4.7 5.5 Trade and other Capital expenditure 10 13 25 15 Bond payables 2.1% 19.5% Cash flow from operating activities 39 55 59 62 Dividend payment for the year - 4.0 4.6 5.3 Debt repayment schedule December 31st 2015 FCF* (EURm), FCF/Sales ratio

80 64 67 12% 57 10% 60 50 10.2% 9.9% 8% 8.5% 40 7.4% 6% 1-2 4% years 20 48.0% 2-5 years 2% 52.0% 0 0% 2012 2013 2014 2015

FCF (EURm) FCF/SALES

FCF: CFO before interest paid increased by CFI

FINANCIAL OVERVIEW 2015 (2/2) 25 Sales (in EUR 000) 2015 2014 2015/2014 EBITDA (in EUR millions) 2015 2014 2015/2014

SBU Beverages 87,641 85,176 4.3% SBU Beverages 20.6 16.7 23.4%

SBU Coffee 142,753 136,891 5.7% SBU Coffee 27.8 29.7 (6.4%) SBU (Sweet and Salted) 83,099 81,923 2.8% SBU (Sweet and Salted) Snacks 12.9 13.0 (0.6%) Snacks SBU Savoury Spreads 70,820 62,851 14.2% SBU Savoury Spreads 13.1 13.9 (6.0%) SBU Sports and Functional 101,109 103,877 (1.4%) SBU Sports and Functional Food (1.5) 2.1 (171.1%) Food SBU Pharma and Personal 67,055 65,779 3.3% SBU Pharma and Personal Care 5.6 6.4 (12.7%) Care SDU Croatia 123,462 112,567 11.1% SDU Croatia 3.1 2.0 48.9% SDU Serbia 154,618 144,420 8.5% SDU Serbia 4.2 3.7 11.9% SDU International markets 77,620 77,657 1.3% SDU International markets 0.6 1.9 (71.1%) DU Slovenia 100,246 96,732 5.0% DU Slovenia 5.5 4.8 15.7% Other segments* 102,639 109,401 (4.9%) Other segments* (17.2) (15.8) 8.9% Reconciliation** (399,838) (394,823) n/a

Sales 711,225 682,450 5.6% Group EBITDA 74.6 78.6 (5.0%)

* Other segments include SDU HoReCa, SDU CIS, BU Baby Food, DU Macedonia and business activities not allocated to business and distribution units (headquarters and support functions in Serbia, Slovenia and Macedonia) which are excluded from the reportable operating segments. ** Line item “Reconciliation” relates to the sale of own brands which is included in the appropriate SBU and BU and in SDUs and DUs through which the products were distributed.

PERFORMANCE BY SBUs AND SDUs IN 2015 26 . Performance in 2015 line with guidance despite challenging macroeconomic conditions

. Significant decrease of financial debt and increase of cash flow from operating activities

. Reorganization of the distribution business

. Development of own brands and opening of new pharma locations

. Integration of Foodland and production start in Nova Gradiška bars factory

. Restructuring and reorganization of Sports and Functional food and sale of the tea business

. Risk management and consolidation of IT solutions

KEY BUSINESS DEVELOPMENTS IN 2015 27 . Long term debt refinanced (prolonged maturity and lower interest rates)

. Maturing bond successfully refinanced

. Strategic guidance as announced on February 28th 2016

. New distribution companies established in Germany and Austria

. Continuation of the restructuring of the SBU Sports and Functional Food, termination of cooperation with the major buyer of private label

. Further consolidation of IT by SAP business solutions implementation

KEY BUSINESS DEVELOPMENTS IN 2016 28 (in HRK millions) H1 2016 H1 2015 H1 2016/H1 2015

Sales 2,456.6 2,540.1 (3.3%) EBITDA 259.8 280.4 (7.4%) EBIT 192.2 207.9 (7.5%) Net profit/(loss) 133.7 143.9 (7.1%) Profitability margins EBITDA margin 10.6% 11.0% -47 bp EBIT margin 7.8% 8.2% -36 bp Net profit margin 5.4% 5.7% -22 bp

(in HRK millions) H1 2016 2015 Net debt 1,775.3 1,678.1

Total assets 5,366.5 5,294.6 Capital and reserves 36.8% Total Equity 1,977.0 1,945.3 Long term borrowings 23.0% Current ratio 1.4 1.3 Gearing ratio 47.3% 46.3% Short term borrowings 12.7% Net debt/EBITDA 3.2 3.0 Bond 3.7%

H1 2016 H1 2015 Trade and other payables Interest coverage ratio 6.0 5.1 18.6% Capital expenditure 48.0 32.8 Cash flow from operating activities (115.2) 155.9

FINANCIAL INDICATORS IN 2016 29 STRATEGIC GUIDANCE Sales (EURm) EBITDA (EURm) 800 90 101% 96% 100% 98% 98% 102% 102% 99% 98% 700 102% 80 600 70 60 500 50 400 93% 103% 99% 40 98% 101% 300 100% 30 200 20 100 10 0 0

2008 2009 2010 2011 2012 2013 2014 2015 2008 2009 2010 2011 2012 2013 2014 2015

99% Reported Guidance 6.000 4.930 4.964

5.000 70 EBIT (EURm) 96% 101% 100% 60 104%  Atlantic Grupa listed on the Zagreb Stock 4.000 th 50 97% Exchange on November 19 2007 40 3.000 30 99% 104% 95% 20 2.000 102% From 2008 Atlantic Grupa publishes 10 104% 559 550 guidance for the following financial year 1.000 0 399 385 and delivers it 2008 2009 2010 2011 2012 2013 2014 2015 0 Sales EBITDA EBIT

GUIDANCE TRACK RECORD 31  Focus on: (i) stronger internationalisation of brands with international potential (Multipower, Argeta, Donat Mg, Bebi, Cedevita, Granny’s Secret), (ii) strengthening the position of regional brands (Cockta, Cedevita, Smoki, Grand Kafa, Barcaffe, Najlepše želje, Chipsos), (iii) active development of the regional HoReCa portfolio, and (iv) further restructuring of the business unit sports and functional food.

Strategic  Special efforts will be placed into listing and positioning of own brands into retail channel in Germany management and Austria and on marketing activities on those markets. guidance  The management of Atlantic Grupa in 2016 expects lower average prices of raw coffee in the global commodity markets and an unfavourable effect of the EURUSD exchange rate that management plans to largely annul by active hedging, continuous cost management and business processes optimisation.  Additional pressures on operations arise from discontinuation of cooperation with the biggest private brand buyer in Sports and functional food (with whom was in 2015 realized 350 HRK millions annual sales), continuation of crisis in Russia and Ukraine and further depreciation of rouble.

(in EUR millions) 2016 Guidance 2015 2016/2015 Sales 711 711 (0.1%) EBITDA 63 75 (16.3%) EBIT 41 53 (23.3%) Interest expense 13 14 (5.4%)

In 2016, we expect capital expenditure in the amount of around EUR 20 million. The expected effective tax rate in 2016 should be at the level of the statutory tax rate for Croatia.

STRATEGIC GUIDANCE FOR 2016 32 Risk Description Effects / Management

 Key SEE markets have been in recession for  Non-cyclical key categories several years with personal consumption  Planned reducing dependancy on the SEE Macro outlook in key countries under the influence of poor situation in the region with expansion in the Western labour markets and deleveraging of European markets (acqusitions) and CIS and households Russia (organic growth)

 Atlantic is one of the largest regional producer  Continous retail consolidation is underway, with the largest portfolio of “essential” brands Retail consolidation and private most significantly Agrokor – Mercator  Increase of bargaining power with new label combination which puts pressure on the local FMCG producers principals/own brands portfolio expansion (e.g. distribution contract)

 Larger global competitors have lower cost  Atlantic’s brands are household names comanding much larger brand awareness Global competition production, globally established brands and bigger marketing firepower and in the future  Tactical acquisitions aimed at niche products will focus more on Eastern Europe with premium positioning

 Volatile currencies (RUB and RSD) present large risks to Atlantic and its EUR based  Atlantic ultilises available risk management Currency and commodity investors tools (forward contracts for commodities), but risk for some risks (RUB, RSD) hedging is too  Substantial commodity risks with key raw expensive materials (coffee, sugar)

BUSINESS RISK MANAGEMENT 33 SUMMARY HIGHLIGHTS

 Active brand management with emphasis on:  Cost management and optimisation of business SHORT-TERM: 1. Strengthening the position of regional brands processes on all operating levels aimed at and constant innovation improving operating efficiency . M&A financing ORGANIC 2. Increasing placement of brands with  Active monitoring of trends and hedging the price . Investments FOCUS international potential on the international of raw coffee and other raw materials required for markets  Regular settlement of existing financial liabilities international  Strengthening the regional distribution through extension with an active management of debt and financial expansion of the principals’ brands portfolio expenses  Active development of the regional HoReCa segment  Prudent liquidity management and deleveraging with a portfolio that covers '24/7 consumer needs' and other sale channels (online, etno channel) LONG-TERM:

. Multinational HIGHLIGHTS TARGETS company with STRONG PROFITABLE  With continuous deleveraging and Net debt/EBITDA at the  WESTERN EUROPE (primarily): GROWTH and 3.0x level, the company is set for new acquisitions 1. Branded business within the FMCG industry at least 1/3 of 2. Distributor with wide-spread distribution sales coming Key aim: reduce dependancy in the SEE region and network (aim: finding distribution channel for M&A  from strengthen foothold on the WESTERN EUROPEAN markets own brands with international potential) FOCUS International (Germany, Austria, Switzerland, UK, Italy, Sweden, Spain,  REGION: France) 1. Branded business with premium products that markets have international potential 2. Regional companies that will further strenghten market position in the regional categories (e.g. coffee, snacks)

STRATEGY 34 BUSINESS UNITS SBU COFFEE STRENGTH OF TRADITION

• Barcaffè - over 45 years of tradition in Slovenia • 8 out of 10 Slovenians drink Barcaffè • Grand kafa - over 15 years brand No.1 in Serbia

SBU COFFEE 37 20.1 %

— share in sales EUR 143m No. 1 in Turkish coffee in Serbia, Slovenia, B&H and Macedonia — sales in 2015

SBU COFFEE 38 SBU SAVOURY SPREADS ARGETA & MONTANA delicious meal for all occasions . Manufacturer of high quality food brands – Argeta savoury spreads, and Montana sandwiches with extended freshness

SBU SAVOURY SPREADS 40 10.0 %

— share in sales No.No. 1 1 EUR 71m SPREADSSPREADS BiHBiH││ Slovenia Slovenia││ Austria Austria││MacedoniaMacedonia — sales in 2015 No.No. 2 2 6th strongest FMCG brand in the region. SPREADSSPREADS Sold in 33 countries. SwitzerlandSwitzerland││SerbiaSerbia││CroatiaCroatia

SBU SAVOURY SPREADS 41 BU GOURMET GRANNY’S SECRET

. Produced at the base of Mount Kopaonik, protected ecological area . Hand picked fruits and vegetables specially treated at very low temperatures in order to preserve all the nutrients

BU GOURMET 43 0.8 % Products for true connoisseurs — share in sales

.100% natural, finest grown EUR 6m and wild fruits and — sales in 2015 vegetables without preservatives, artificial colors or aromas .Present in over 20 markets worldwide .Categories: Ajvar (Roasted Red Pepper Spreads), Fruit Jams and Coulis, Fruit and Vegetable Juices

BU GOURMET 44 SBU SNACKS LEADING FMCG BRANDS IN THE REGION

. 27,320 tonnes of snacks produced in 2015 . Flips No.1 in Serbia, B&H and Slovenia . No.1 chocolate bars and wafers in Serbia . Over 1 million fans on Facebook SBU SNACKS 46 No. 1 Created in 1972, the first flips produced in SEE, Smoki has become the generic word for a group of flips products. SERBIA Flips│ Chocolate bars│ Wafers 11.7 % A delightful dessert offers a wide selection of flavours and shapes. CROATIA, SLOVENIA, BiH Flips│ — share in sales The famous soft chocolate foam dessert, first of its kind in the SEE region, is a product with more than No. 2 75 years of tradition. EUR 83m Biscuits and wafers that marked the youth of many SERBIA generations. Chocolate tablets│Biscuits│Sticks — sales in 2015

SBU SNACKS 47 SBU SPORTS AND FUNCTIONAL FOOD MULTIPOWER Leading brand in Europe

. Production, R&D and sales of sports and functional food and healthy food . Leading brand of sports nutrition in Europe and No. 1 in dietetic products category in Germany . Over 38 years of tradition

SBU SPORTS AND FUNCTIONAL FOOD 49 No. 1 Sports food in Europe. 14.2 %

— share in sales

EUR 101m

— sales in 2015

SBU SPORTS AND FUNCTIONAL FOOD 50 SBU BEVERAGES SALES BY CATEGORIES

SBU BEVERAGES 5352 No. 1 Vitamin instant drink in Croatia, Slovenia and Serbia 12.3 % A cola drink that was born different 60 years ago. Unique blend of 11 herbs and aroma of dog rose. — share in sales

During its 40 years became synonym for the healthy multivitamin refreshment in the region. EUR 88m

— sales in 2015 A natural multifunctional mineral water with a high level of magnesium and clinically proven effect.

SBU BEVERAGES 54 SBU PHARMA AND PERSONAL CARE HEALTH AND BEAUTY CARE 9.1 % . Encompasses 3 complementary activities: I. Farmacia pharmacy chain — share in sales II. Food supplements and OTC products (Fidifarm and Dietpharm) EUR 67m III. Cosmetics (Neva) — sales in 2015

Croatia’s largest private chain of Pharma pharmacies and specialised shops for medicines and food supplements.

Plidenta toothpaste has maintained its leading position on the Croatian market.

An original Croatian universal cream. Personal care

Renowned Croatian brand in the cosmetics.

The leading regional producer of food supplements and vitamin products.

SBU PHARMA AND PERSONAL CARE 55 No. 1

CROATIA Lip care│ Food supplements│ Dental care

SERBIA and B&H Food supplements│

No. 2

CROATIA Body care│

SERBIA Lip care│

SBU PHARMA AND PERSONAL CARE 56 BU BABY FOOD BEBI - FROM THE FIRST DAY OF LIFE

. No. 1 in category of baby cereals in Ukraine . No. 1 in baby biscuits category in Lithuania

BU BABY FOOD 58 2.9 %

— share in sales

EUR 20m

— sales in 2015

BU BABY FOOD 59 Atlantic Grupa d.d. Miramarska 23 10000 Zagreb, HR

T +385 1 2413 145 F +385 1 2413 901 [email protected]