2 About us CO 3 Facts and figures 4 Our timeline 5 Our vision 6 Our values 11 Our Divisions 27 Our assets 28 Our team 30 Our responsibility 33 Our awards 36 Our new face NT 37 Contact ENT AB OUT US MK Group is a synonym for 35 years of successful and sustainable business. The driving force behind our company is not only our team of 7000 employees, but also tens of thousands of business associates. Thanks to corporate governance based on a stable cooperation with all the relevant partners, the company has become a leader in three key areas of business over the years: agriculture, tourism and banking. For almost four decades of successful work, the company has expanded its operations across Southeast Europe, with a special emphasis on four countries in the region: Serbia, Slovenia, Croatia and Montenegro. All these markets today clearly recognize that MK Group’s goal is not only to create good financial results but also to develop all 123 communities in which we operate. Speaking of community improvement, above all we take care of our people, our associates, institutions and society as a whole. Our company has a clear and recognizable vision. This is a story about who we are, what we do and what more we can do... Welcome to MK Group! 2 FACTS Total investments € 1,000,000,000 The number of local communities in which we operate 123 Number of AND indirect employees 200,000 Number of subcontractors 30,000 Annual export value € 300,000,000 Taxes and contributions paid € 109,000,000 FIG Total revenue € 600,000,000 500 socially responsible activities were realized in the last 5 years and € 4,000,000 were invested URES 3 Acquisition of 43% share in AIK Bank Expansion of hotel business by 2016 taking over the Kempinski Palace Acquisition of one of Hotel in Portorož, Slovenia the largest agricultural 2014 companies in Serbia, Acquisition of the sugar factory 2016 PIK Bečej OUR 2015 TE-TO Senta, which resulted in an increase in MK Group’s market share of the Serbian sugar market from 50% to 70% The Serbian branch AIK Bank EBRD recapitalizes 2015 of Alpha Bank 2016 acquisition 6.14% of Argi Europe TIME becomes part of AIK 2017 of 13.9% of Cyprus, parent Bank Gorenjska Bank in 2013 Acquisition of a majority company of MK stake in AIK Bank Slovenia Group, for a total price of € 50,000,000 Sale of agricultural business in Ukraine LINE 2017 Agroglobe 2017 became part 2013 The parent company Miodrag Kostić, President of MK Trading Acquisition of Carnex, Agri Europe Cyprus of MK Group, established division 2011 a regional company for purchased shares meat production and owned by the EBRD 1983 his first company Acquisition of the processing luxury hotel complex 2017 Skiper Resort in Savudrija, Croatia Two companies for the Establishment of production and trade of Acquisition of 15% the broker company Establishment of MK Group bought 51% Opening of the 2017 1995 grain products, Granexport share in the hotel M&V Investments the company MK 2010 of Sunoko shares and first Sheraton and Žito Bačka, become 2018 complex Budvanska 1990 Commerce, a member 2007 became 100% owner Hotel in Serbia part of MK Group Riviera, Montenegro of MK Group Four sugar 2006 factories Pećinci, Kovačica, Vrbas 2002 and Bač became MK Group invests in 2018 part of MK Group agriculture in Ukraine by 2019 taking over 6 agricultural Hotel Grand and Konaci companies 2009 Sunčani Vrhovi, Kopaonik, AIK Bank Acquisition of AIK Bank became part of MK Group 33% share in Gorenjska acquisition of 2005 Bank and majority voting 100% of Gorenjska 2008 rights 2018 Bank in Slovenia Establishment of the company Sunoko, member of MK Group, as 2005 MK Commerce grew into MK Acquisition of a majority a joint venture with Nordzucker, Group stake in Portorož Airport the third largest sugar producer in Acquisition of 6 agricultural Europe companies: Panonija, Agrounija, Labudnjača, Djuro Strugar, Elan and Selekcija 4 OUR VI SI We create and implement the latest sustainable business models, elevate standards in key aspects of our business: agriculture, tourism and banking. All that with one goal in mind – to become the leader ON in Southeast Europe. 5 Led by its values and smart decisions, MK Group turns its vision into growth for business, people and our whole society. Our values are reliability, team spirit, innovation and responsibility. OUR VA LU ES 6 RELI We are a reliable and stable support for our employees, ABIL partners and society in general. ITY 7 We make smart decisions together. TEAM SPI RIT 8 INNO VATI ON We implement high end sustainable business models, thus raising business standards. 9 RE SPON Our business operations enable sustainable growth and SIBILI community development. TY 10 We have divested all the divisions under the umbrella of OUR our key values. DIVI SIONS 11 VIS ION The following divisions operate FOR within the agricultural segment: GRO WTH 12 The following companies operate within this division: Agrounija, established in 2003 PIK Bečej, established in 1959 PD Vojvodina, established in 1958 Carnex Agrar, established in 1958 Victoria Oil, established in 1978 VIS Soja Protein, established in 1978 ION FOR SYN ERGY 13 KEY ACTIVITIES: Crop production With our subcontractors we process 265,000 ha, out of which 22,500 ha are in our possession. Apple orchard, production and storage of fruit The apple orchard covers 84 ha. Production and processing of vegetables Annual sales of 16,000 t of frozen and preserved vegetables under the Flora brand. Cattle breeding The total annual production of milk is 12,000,000 l, of which 70% is extra-class milk. Fish breeding The fish breeding facility covers655 ha. Viticulture and wine production Storage capacities 3,000,000 l. Soya processing Annually we produce 265,000 tons of NON-GMO soybeans. Number of Financial indicators Total investments at Annual field crop Production of crude and refined oils employees 2018 in 000 EUR Division level amount to production amounts to The processing capacity is 220,000 t of sunflower 1000 Income 65,952 € 130,000,000 400,000 t – 700,000 t oil per year. Annually, 70,000,000 bottles of oil are EBITDA 13,762 produced. 14 VIS The following companies operate within this division: Silosi Miloševo, established in 2008 Agrobrest, established in 2008 Agroglobe, established in 2004 Agrium, established in 2001 Granexport, established in 1952 Žito Bačka, established in 1916 ION Animal feed factory, Spuž established in 1968 FOR Nikšićki mlin, established in 1951 COO PERA TION 15 KEY ACTIVITIES: Provision of raw materials for agricultural production Securing 670,000 t of storage capacity Milling Annual production of wheat flour capacity 150,000 t. Annual production of corn flour capacity 36,000 t. Number of Financial indicators 2018 Total investments Trade with the following employees in 000 EUR at Division level products: 650 Income 364,151 amount to Cereals EBITDA 14,858 € 60,000,000 Oilseeds Sugar beet Fungi and pesticides Seeds Import and distribution of New Holland agricultural machinery and spare parts Annual turnover at 70 buy-out places Division level amounts to every 25km 1,600,000 t of goods throughout Vojvodina 16 VIS Carnex is a market leader in the meat industry in Serbia, and a regional brand in the production of meat products, with a 60-year-long tradition of successful business. This company applies the highest world standards to its entire production process, which is fully vertically integrated - the “from field to ION table” principle. FOR QUA LITY 17 KEY ACTIVITIES: Animal feed production Annual production capacity is 100,000 t. Pig farms Annual production capacity is 160,000 pigs, or 16,000 t on 5 farms. Meat production Annual production capacity 45,000 t meat and meat products. Number of Financial indicators Total investments 150 different meat products in 5 employees 2018 in 000 EUR at Division level categories: 1000 Income 63,778 € 70,000,000 Sterilized cans - pâtés EBITDA 7,160 Semi-durable sausages - wieners, delicatessen, salami, hams Ready-made dishes Fermented products - smoked products, bacon Fresh meat - pork carcass sides 18 VIS ION FOR Sunoko is the regional leader in sugar production, and one of the most efficient factories for sugar beet production in Europe. Compared to the largest sugar producers in Europe, Sunoko has the highest EBITDA margin, which points to an optimized production process and lower ENJOY costs compared to competitors. MENT 19 Number of Financial indicators 2018 Total investments at THE FOLLOWING PRODUCTION employees: in 000 EUR Division level amount to CENTRES OPERATE WITHIN 500 employed for an Income 157,588 € 210,000,000 SUNOKO: indefinite period and EBITDA 21,877 300 seasonal workers Pećinci, established in 1976 Daily sugar beet processing capacity is 8,000 t. Vrbas, founded in 1912 Daily sugar beet processing capacity is 7.500 t. Annual production program includes Annual processing of Kovačica, established in 1975 400,000 t of sugar more than 2,700,000 t Daily sugar beet processing 135,000 t of molasses of sugar beet capacity is 7,000 t. 120,000 t of sugar beet pulp 20 VIS ION FOR HOS The Tourism Division and Real Estate management includes 14 hotels in Serbia, Slovenia, Croatia and Montenegro, Portorož PITA airport and golf courses in Savudrija. Total investments at MK Tourism Division LITY level amount to € 200,000,000. 21 Kempinski Palace Portorož 5*, Slovenia Kempinski Hotel Adriatic Istria 5* and Skiper Resort, Croatia Apartments and villas within Skiper Resort Group: • X, Y apartments 4* • Skiper Suites 4* and 5* More than 100 years Superior, Deluxe