FIMA Daily Insight

IN FOCUS - STOCK EXCHANGE October 28, 2013 Investors on ZSE started the week in negative mood with both indices

ZSE STOCK MARKET declining; CROBEX lost 0.11% to 1,762.22pts while blue chip CROBEX Last 1.762,2 CROBEX10 decreased 0.17% to 997.89 pts. Regular stock turnover % daily -0,11 % YTD 1,25% amounted to HRK 5.4 million. CROBEX10 last 997,9 Integrated telecom operator HT (HTRA CZ) topped the liquidity board % daily -0,17 once again collecting HRK 1 million in turnover and decreasing 0.04% to % YTD 2,71% CROBEX plus 894,4 HRK 169.89. Company informed investors that it will announce its Q3 % daily -0,10 2013 results on Wednesday, 30 October 2013. A conference call for % YTD -10,56% analysts and investors will be held at 14.00 UK time/15.00 CET on the Stock Turnov er (HRK m) 5,37 same day. said on Monday it has filed an application Source: w w w .zse.hr for additional radio frequency spectrum allocation with the country's

-15,0% -10,0% -5,0% 0,0% 5,0% telecoms regulator, HAKOM. Hrvatski Telekom wants to participate in LKRI-R-A the public auction for assignment of licences for use of the remaining ULPL-R-A PODR-R-A unassigned radio frequency spectrum for a public mobile electronic KORF-R-A

PTKM-R-A communication network in Croatia, the company said in a filing to the

ERNT-R-A Zagreb bourse. VPIK-R-A

ADRS-P-A

KOEI-R-A Tourism holding company Valamar Adria Holding (KORFRA CZ) followed KRAS-R-A collecting HRK 0.7 million in turnover while price advanced 1% to HRK ZABA-R-A HT-R-A 154.73. Croatia's revenues from tourism services rose 10.9% to HRK -R-A

THNK-R-A 17.9 billion in the first eight months of 2013, the country's tourism

DDJH-R-A ministry said on Monday. ATGR-R-A

ADPL-R-A

BLJE-R-A Croatia Osiguranje preferred share (CROSPA CZ) followed collecting DLKV-R-A HRK 0.4 million in turnover while price advanced 7.7% to HRK 7,000.0. INA-R-A

ATPL-R-A

INGR-R-A Fertilizers producer (PTKMRA CZ) advanced 0.9% to HRK DIOK-R-A 184.99. Based on the collected bids for financial consultants for the * data is calculated using last traded price Source: www.zse.hr selection of a strategic partner, the Management of Petrokemija has CROBEX 3 MONTH MOVEMENT chosen Societe Generale Plc., Paris. This is a continuation of active

2.100 processes necessary to achieve the objective of Petrokemija to find a 80

2.000 70 strategic partner that will enable better positioning of the Company in

60 the market and secure the future of production in Kutina. 1.900 50

1.800

pts 40

30 1.700 HRK Millions

20 1.600 10

1.500 0 Turnover CROBEX

source: www.zse.hr

For more information please contact us via mail [email protected] or on tel. +385 42 66 09 60 1

FIMA Daily Insight

IN FOCUS - ZAGREB STOCK EXCHANGE

Croatia 2013 GDP to Contract Less Than Expected, Survey Shows LIQUIDITY TOP 5 HT-R-A 989.705 HRK Croatia’s economy will probably contract less than economists previously KORF-R-A 726.795 HRK expected in 2013 as consumption strengthens and exports are boosted by CROS-P-A 412.001 HRK the euro area’s recovery. Gross domestic product will contract 0.6 percent -R-A 383.206 HRK this year on an annual basis, according to the median estimate of ten ADPL-R-A 242.644 HRK economists in a Bloomberg survey conducted Oct. 18-23, compared with a Source: www.zse.hr July prediction of a 0.7 percent contraction. The economy will grow 0.9 MARKET SENTIMENT percent next year, the survey shows, down from the economists’ earlier No. of traded stocks 71 estimate of 1.1 percent in July. The economy of the European Union’s Increase 33 newest member has shrunk more than 10 percent since 2008 as foreign Decrease 33 direct investment plunged 80 percent. The Adriatic nation’s economy will w/o change 5 expand 0.2 percent this year, the government predicted last month, Source: www.zse.hr trimming a previous 0.7 percent forecast. “Domestic demand in Croatia MACROECONOMIC PARAMETERS seems to be making a gradual recovery, supported by low inflation,” William GDP estimate (2013) 0,3% Jackson, a emerging markets economist at Capital Economics, said by e- Real GDP (Q2 2012)* -2,2% mail. The recovery will probably remain “weak and fragile, as Croatia’s Real GDP (2011)* 0,0% major export markets include some of the weaker euro-zone countries.” CPI ( Q2 2012)** 3,4% Economists expect inflation to remain below 3 percent through 2015. Unemployment ( Q2 2012) 18,2% Unemployment in September rose to 19.1 percent, according to the FX RATE HRK per EUR 7,55 statistics office in Zagreb. The European Commission forecast a 1 percent FX RATE HRK per USD 5,70 contraction this year and mild growth in the next. (Source: Source: www.dzs.hr, www.hnb.hr Bloomberg.com) * % chan ge, yoy

** % change, yoy, end of period

CROATIA LT CREDIT RATING FitchRatings: BBB- Standard&Poor's: BB+ Moody's: Baa3

8,0

7,0

6,0

5,0

4,0

HRK-EUR HRK-USD Source: www.hnb.hr

For more information please contact us via mail [email protected] or on tel. +385 42 66 09 60 2

FIMA Daily Insight

IN FOCUS - ZAGREB STOCK EXCHANGE

CROATIAN EQUITIES (FUNDAMENTAL MULTIPLES)

Average Mk cap Mk cap P/E P/S P/Bv EV/EBITDA EV/S Yd price (HRK m) (EUR m) (HRK) 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 Industry AD Plastik 131,2 550,8 72 8,5 9,8 0,8 0,7 0,8 0,8 7,1 9,1 1,0 1,1 6,1% 3,0% (preferred)* 263,9 4.547,6 596 9,1 9,0 1,6 1,6 0,6 0,6 8,6 7,7 1,9 1,9 2,7% 2,7% ĐuroĐaković 59,4 192,2 25 316,2 48,0 0,2 0,2 0,9 0,9 28,7 14,3 0,6 0,4 0,0% 0,0% 1438,7 1.915,9 251 68,4 15,1 1,6 1,0 2,3 2,5 42,6 10,1 1,3 0,8 11,8% 11,8% INA 3977,8 39.777,8 5.217 22,1 57,9 1,3 1,3 2,8 2,7 9,0 14,4 1,7 1,6 0,0% 0,0% Končar DiST 1000,4 278,8 37 8,3 8,4 0,4 0,4 1,6 1,4 5,8 8,2 0,4 0,5 5,3% 5,2% Končar Elektroindustrija 709,7 1.825,4 239 9,5 10,3 0,8 0,7 0,9 0,9 15,0 11,3 0,8 0,8 1,7% 0,0% Petrokemija 182,4 609,3 80 5,7 -3,4 0,2 0,2 0,8 1,0 4,5 -19,8 0,4 0,4 0,0% 0,0% Food Belje 53,1 436,3 57 -6,1 -4,3 0,3 0,3 0,4 0,4 5,9 4,9 0,5 0,4 0,0% 0,0% Čakovečki mlinovi 3250,0 341,3 45 39,5 12,2 0,3 0,3 0,7 0,6 6,6 6,1 0,4 0,4 2,3% 2,2% Jamnica 58500,0 1.294,4 170 12,9 9,6 1,1 1,0 1,4 1,2 7,0 6,7 1,0 0,9 0,0% 0,0% Kraš 401,1 550,9 72 21,9 300,3 0,5 0,6 0,8 0,9 8,8 11,3 0,8 0,8 3,2% 0,0% Ledo 7930,0 2.489,4 326 19,6 18,7 2,1 2,2 2,9 1,4 12,3 12,3 1,6 1,7 0,0% 0,0% 240,0 1.300,7 171 30,3 -60,5 0,4 0,4 0,8 0,8 8,6 10,6 0,8 0,7 0,0% 0,0% Viro 604,4 838,1 110 6,4 6,5 0,6 0,6 1,3 1,3 5,2 5,1 0,9 0,8 3,3% 0,0% Vupik 108,3 163,0 21 2,8 15,6 0,7 0,5 0,3 0,3 2,2 3,2 0,9 0,7 0,0% 0,0% Zvijezda 3970,0 398,0 52 9,7 12,3 0,4 0,4 0,5 0,4 6,0 7,4 0,4 0,4 0,0% 0,0% Telecom HT-Hrvatske Telekomunikacije 169,5 13.877,7 1.820 7,7 8,3 1,9 2,0 1,2 1,3 3,9 4,5 1,9 2,1 13,1% 12,1%

Construction 25,6 73,3 10 -0,3 -0,2 0,1 0,1 0,1 0,3 -6,9 -4,4 0,9 0,8 0,0% 0,0% Hidroelektra Niskogradnja 93,5 58,3 8 203,0 -2,4 0,1 0,1 0,3 0,4 4,7 -14,0 0,2 0,2 0,0% 0,0% Institut IGH 145,0 23,0 3 13,5 -0,1 0,0 0,1 0,0 0,1 9,6 -2,2 1,1 2,0 0,0% 0,0% Ingra 3,1 41,9 5 -0,5 -0,3 0,2 0,3 0,1 0,1 -30,9 -9,2 4,1 4,9 0,0% 0,0% 577,5 109,4 14 123,9 86,4 0,1 0,1 0,3 0,3 76,7 67,5 0,8 0,9 0,0% 0,0% 257,0 117,4 15 56,0 52,9 0,1 0,1 0,6 0,6 5,3 4,5 0,3 0,3 0,0% 0,0% Transportation 336,8 470,0 62 32,1 -6,3 0,9 1,0 0,3 0,3 5,3 18,4 2,1 3,6 0,0% 0,0% Jadranski naftovod 2290,0 1.701,1 223 27,7 17,6 4,1 4,2 0,5 0,5 7,4 7,3 4,1 4,6 0,0% 0,0% Luka Ploče 444,0 187,8 25 7,1 -6,5 1,3 1,7 0,5 0,5 12,3 -41,6 1,7 2,3 0,0% 0,0% Luka 103,0 616,2 81 5,1 125,1 3,8 3,6 1,4 1,3 82,6 50,4 4,8 4,6 0,0% 0,0% 174,0 100,9 13 -12,9 -1,2 0,5 0,5 0,2 0,2 14,4 21,6 5,9 6,9 0,0% 0,0% Retail&Wholesale 636,8 2.123,2 278 38,7 32,1 0,4 0,4 1,4 1,5 8,4 4,6 0,9 0,5 0,0% 0,0% Tourism Arenaturist 184,4 402,4 53 -21,3 749,5 1,7 1,5 0,6 0,6 13,5 8,1 1,8 2,0 0,0% 0,0% HUP Zagreb 1250,4 566,8 74 -8,1 17,6 2,5 2,4 0,9 0,9 -19,4 7,3 2,8 2,5 1,2% 0,0% Imperial 217,0 138,0 18 52,8 23,0 1,3 1,2 0,5 0,5 7,6 7,2 2,6 2,4 0,9% 0,9% Jadranka 550,0 182,9 24 15,6 11,8 0,6 0,6 0,3 0,3 5,5 7,1 1,0 1,3 0,0% 0,0% Liburnia Riviera Hoteli 2200,7 666,0 87 160,6 40,5 3,3 3,2 0,8 0,7 15,1 11,3 2,9 2,7 0,0% 0,0% Maistra 90,5 990,5 130 -130,1 17,8 1,7 1,6 1,1 1,0 6,1 4,6 1,7 1,6 0,0% 0,0% Hoteli Makarska 180,0 201,5 26 81,9 28,2 3,3 3,1 1,0 1,0 12,9 9,6 2,9 2,6 0,0% 0,0% Plava Laguna 2550,0 1.541,9 202 20,5 20,9 3,0 2,9 1,1 1,1 6,9 6,6 2,6 2,6 3,6% 0,0% Solaris 661,3 408,5 54 -16,3 -60,2 2,3 2,1 0,5 0,5 9,2 8,1 2,8 2,7 0,0% 0,0% Valamar Adria Holding 152,3 1.137,6 149 -41,1 21,7 1,3 1,2 0,6 0,6 8,7 6,2 2,0 1,7 0,0% 0,0%

“ - “ stands for negative value of multiple

* multiples for Adris Group calculated on diluted basis

For more information please contact us via mail [email protected] or on tel. +385 42 66 09 60 3

FIMA Daily Insight

IN FOCUS - ZAGREB STOCK EXCHANGE

CONTACTS FOR INSTITUTIONAL IN VESTORS:

IRENA FIŠTREK [email protected] +38542 66 09 64

KREŠIMIR ČULO [email protected] +385 1 63 98 357

TRADING DEPARTMENT: [email protected] Phone : +385 42 66 09 60

RESEARCH DEPARTMENT:

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

STIVEN TOŠ [email protected] +385 42 66 09 75

For more information please contact us via mail [email protected] or on tel. +385 42 66 09 60 4

FIMA Daily Insight

IN FOCUS - ZAGREB STOCK EXCHANGE

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 60 5