Atlantic Grupa UniCredit New York March 2012 the leading soft drinks producersin ex-YUarea CEDEVITA, ... Atlantic Grupa successfully acquired regional food & beverages company ...

ATLANTIC GRUPACompany of Added Value

11

13th Annual Emerging Europe Investment Conference

New York City, March 15-16, 2012

CONTENT

ATLANTIC GRUPA’S BUSINESS MODEL, DEVELOPMENT and PERFORMANCE

INTEGRATION ACTIVITIES and SYNERGIES

22

2011 FINANCIALS

2012 OUTLOOK

ONE of the LARGEST FOOD and BEVERAGES COMPANIES in the ADRIATIC REGION

Business� Fast Moving Consumer Goods

Headquarters� Zagreb, Croatia (Europe)

Foundation � 1991

No of employees� 4,198

FY11 sales

� EUR 630m

Key Markets

� SEE region, Western Europe, Russia

� 30 markets

Production facilities

� 14 production locations in Slovenia, Croatia, Bosnia and

Herzegovina, Serbia, Macedonia, Germany

33

Key brands:

� The leading European company in the sports nutrition MULTIPOWER

� Among the leading soft drinks producers in ex-YU area CEDEVITA, COCKTA, DONAT Mg

� One of the leading coffee producers in ex-YU region GRAND KAFA, BARCAFFE

� Among the leading savoury spreads producers in ex-YU ARGETA

� Among the leading confectionary & snacks producers in ex-YU SMOKI, NAJLEPŠE ŽELJE

� Producer of the No1 Croatian brand in the VMS and the OTC DIETPHARM

� The largest private pharmacy chain in Croatia FARMACIA

� The leading FMCG distributer in the SEE region International Brands (Ferrero, Wrigley etc.)

* Figure translated at EUR/HRK FX rate of 7.5

DEVELOPMENT CYCLE: Extensive M&A track record

Acquisition of Kalničke vode Bionatura

Acquisition of DROGA KOLINSKA

Acquisition of pharmacies – Farmacia

IPO

Fidifarm (Croatia) & Multivita (Serbia)

Representative office Moscow

Haleko & Power Gym: MULTIPOWER

European company

2010

2010

2008/9

2007

2007

2006

2005

Melem

Atlantic Slovenia

Atlantic Macedonia

Neva

Acquisition of CEDEVITA

Atlantic Serbia

Representative office BiH

Regional company

2004

2004

2003

2003

2001

2001

2001

Cooperation Johnson & Johnson

Cooperation Duracell

Distribution center Rijeka

Distribution center Osijek

Distribution center Split

Cooperation Wrigley

National company

1999

1996

1994

1994

1992

1991

DIS

TRIB

UTI

ON

C

OM

PA

NY

DIS

TRIB

UTI

ON

&

PR

OD

UC

TIO

N C

OM

PA

NY

VER

TIC

ALL

Y I

NTE

GR

ATE

D

CO

MP

AN

Y44

20011991

2010*: Pro-forma consolidated with Droga Kolinska; 2011** Unaudited; Figures translated at EUR/HRK FX rate of 7.5 (to avoid FX impact)

1 6 12 17 27 33 36 4264

85 92 104148

186223

267293 302

602630

0

100

200

300

400

500

600

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2010* 2011**

Sales in EURm

CAGR1993-2011**:+42.6%

BUSINESS DEVELOPMENT: The acquisition of Droga Kolinska - AG’s largest acquisition ever

� At the end of 2010, Atlantic Grupa successfully acquired regional food & beverages company – Droga Kolinska

INVESTMENT HIGHLIGHTS

Atlantic Grupa becomes one of the leading F&B

companies in the

Costs savings by merging

distribution, logistics,

procurement and

Droga Kolinska

Ownership 100%

Equity value (EURm) 243

Enterprise value (EURm) 382

2010 EV/Sales 1.2

2010 EV/EBITDA 8.7

55

companies in the region

Regional network of production

plants and distribution

infrastructure

Product assortment

expansion with nearly twofold higher share of

own brands

Balanced geographic

profile

Sales synergies (by utilising

existing distribution

infrastructure)

procurement and marketing

Capital44%

Financial debt56%

Financing structure of Equity value of EUR 243,109 ths

Capital increase

78% of total capital

Atlantic Grupa's

own funds

Senior loan

78% of total debt

Junior loan

22% of total

2010 EV/EBITDA 8.7

2010 P/Sales 0.8

2010 P/EBITDA 5.5

ATLANTIC GRUPA’S BUSINESS MODEL in 2011

Division Distribution

Own brands

Division Consumer

HealthCare

Division Sports and

Functional Food

Division Pharma

VMS - DIETPHARM

Division Droga

Kolinska

Coffee – GRAND KAFA,

66

Own brands

External brands –

Ferrero, Wrigley, J&J,

Duracell, One2play,

etc.

Vitamin drinks and

teas - CEDEVITA

Cosmetics and

personal care –

PLIDENTA, MELEM,

ROSAL

Sports and

Functional Food –

MULTIPOWER,

CHAMP, MULTABEN

VMS - DIETPHARM

OTC - FIDIFARM

Pharmacy chain

FARMACIA

Coffee – GRAND KAFA, BARCAFFE

Savoury spreads -

ARGETA

Sweet and salted

snacks – SMOKI, BANANICA

Beverages – COCKTA, DONAT Mg

Baby food - BEBI

� Following Droga Kolinska’s acquisition in 2010 – Atlantic Grupa’s divisional structure has been retained which enabled running

vertically integrated organisation

� Droga Kolinska has been established as the fifth operating division

ATLANTIC GRUPA’S BUSINESS MODEL from 2012

SBU SBU SBU SBU SBU SBU

77

COFFEE

� Reorganization in 2012 with an aim to manage business segments and distribution markets in a more efficient manner.

BEVERAGES SAVOURY

SPREADS

SNACKS SPORTS &

FUNCTIONAL

FOOD

PHARMA &

PERSONAL

CARE

SDU

CROATIA

SDU

SLOVENIA,

SERBIA &

MACEDONIA

SDU

HoReCa(Hotels,

Restaurants,

Cafes)

DU

RUSSIA

SDU

International

Markets

STABLE MANAGEMENT TEAM and OWNERSHIP STRUCTURE

Management Ownership structure on 30/12/2011

Mladen Veber

Senior Group Vice Zoran Stanković

Group Vice President

Neven Vranković


Emil Tedeschi

President of the

Management Board

88

50.20% Emil Tedeschi 17.29% Pension funds

8.54% EBRD 8.49% DEG

5.79% Lada Tedeschi Fiorio 1.24% Management

0.36% East Capital 8.09% OtherSupervisory board

Supervisory Board

Audit CommitteeNomination and Remuneration

Committee

Corporate GovernanceCommittee

Senior Group Vice

President

Business Operations


Finance


Corporate Affairs

Strategic Management Council: deals with vital strategic and operational

corporate issues.

Consists of: Board members, Senior Executive Directors of SBUs and SDUs,

Secretary General, Executive Directors of Brand operations management,

Central Purchasing and HR as well as the Head of Investment Committee.

PRODUCT/DISTRIBUTION PORTFOLIO OVERVIEW

• Turkish c.

• Espresso c.

• Instant c.COFFEE

• Meat spreads

• Fish spreads

SAVOURY SPREADS

• Carbonated soft drinks

• Vitamin instant drink

• Teas & functional teas

• Functional water

• Bottled water

BEVERAGES

• Toothpaste

• Body creams/universal PERSONAL

CARE

99

• Snacks

• Chocolate

• Biscuits & wafers

CONFECTIO-NERY & SNACKS

• Sports food

• Food supplements

SPORTS & FUNCTIONAL

FOOD

• Own brands

• International brands (Wrigley, Ferrero, Duracell, Jonhson&Johnson, etc.)

DISTRIBUTION

• Body creams/universal creams

• Lip balms

CARE PRODUCTS

• Pharmacy chain

• Vitamins, minerals & food supplements

PHARMA

• Cereals

• Jars, tea

• Milk formula & juicesBABY FOOD

GEOGRAPHIC PRESENCE

28%

25%

13%6%

6%1%

1%3%

9%

Geografic profile* Croatia

Serbia

Slovenia

B&H

Other ex. Yu

Germany

UK

Italy

Russia and EE

1010

Macroeconomic overview

Slovenia

Croatia

Serbia

Macedonia

BiH

+ production facility

in Germany

Strong production and distribution network in the region

* Unaudited 2011 figures

13%8%

6% Russia and EE

Other

2011A 2012E 2013E

Ex. Yugoslavia population

Croatia**

GDP per capita (EUR) 10,423* 10,645 11,182

Inflation 2.3 2.9 2.2

Serbia**



B&H**



Macedonia***

GDP per capita (EUR) 3,855* 3.967 4.284

Inflation 4.4* 2.0 2.0

Slovenia**



Source:*Estimate; **UniCredit CEE Quarterly, Dec-11; ***IMF, World Economic Outlook Database, Sept-11

22 mil l ion

SALES PROFILE

� Coffee, Sports and

Functional Food, Beverages

and Sweet and salted

snacks are the largest

product categories

� Own brands comprise

72% of Group’s sales

� Atlantic Grupa has 11

brands with sales ≥ EUR

15m

72%

17%

5%

6%

Sales by brands*

Own brands Principal brands

Private label Farmacia

17%14%

10%

21%

12%

9%

14%

3%

Sales by categories* Distribution (Principal brands)

Sports and Functional Food

Pharma and Personal care

Coffee

Sweet and salted snack

Savoury spreads

Beverages

Baby food

1111

Top brands in FY11** with sales ≥ EUR 15m Brands among top 3 brands in category

* Unaudited 2011 figures; ** Figures translated at EUR/HRK FX rate of 7.5, Figures at Net I level

80

59

4441

31

23 2319 19 17 17

Private label FarmaciaBaby food

Slovenia

Serbia

Croatia

B&H

Germany

Russia

FINANCIAL OVERVIEW: 2007-2011

EURm FY07 FY08 FY09 FY10FY10

pro-formaFY11*

CAGR

FY07-FY11

Revenues 227 269 296 306 609 637 29%

Sales 223 267 293 302 602 630 30%

Normalized EBITDA 18 23 25 27 70 69 41%

Normalized EBIT 13 17 19 20 37 41 34%

Normalized Net profit 7 10 12 11 17 4 -15%

1212

� Growth in challenging macroeconomic milieu due to innovation and acquisitions.

* Unaudited; **Normalized margins

EUR/HRK rate at 7.5 (to avoid FX impact)

EBITDA margin** 7.9% 8.5% 8.6% 8.9% 11.7% 10.9% +302bp

EBIT margin** 5.7% 6.5% 6.6% 6.5% 6.1% 6.5% +84bp

Net profit margin** 3.3% 3.9% 4.1% 3.8% 2.8% 0.6% -267bp

Net debt 12 39 36 333 333 333

Total assets 200 230 237 688 688 700

Equity 90 99 101 194 194 201

Gearing ratio 11.6% 28.1% 26.4% 63.2% 63.2% 62.3%

CONTENT



1313

2011 FINANCIALS

2012 OUTLOOK

KEY INTEGRATION ACTIVITIES

Sales and distribution

• Setting up joined distribution on all regional markets: establishing independent distribution companies on each regional market that are consolidated in

Logistics and investments

• Setting up joined logistics operations and processes (the most complex one in Serbia with 11 distribution centres, reallocated to 4 new locations)

Procurement/

Production/

Marketing

• Implemented centralised procurement system

• Developed purchasing category management concept with lead buyers for key raw materials

HR challenges

• Creating new and efficient business organisation

• Retaining and motivating the most qualitative workforce

1414

that are consolidated in the Distribution division

• Implemented new commercial terms on all regional markets

• Sales force optimized

locations)

• Logistics reorganisation in Croatia (in-house logistics as opposed to formerly outsourced logistics)

• Consolidation of office space on all regional markets

for key raw materials

• Feasibility studies for consolidation of particular production activities (e.g. transfer of currently outsourced production to in-house production: Cocktabottling to Apatovac)

• Implemented centralised marketing

workforce

• Co-life of different corporate cultures

• Developing fair rewarding schemes

� First phase of integration activities carried out in the 1H11

OVERVIEW of NET SYNERGIES in 2011

7,097

5,237

4,000

6,000

8,000Net Synergies, EUR000

Distribution

32%

Purchasing

24%

By Areas, net synergies

1515

* Capex of EUR 705 ths refers to Investment management: Investments in opening new distribution centres (including investments in

warehouse equipment and ICT) and refurbishment of office space

1,860

0

2,000

4,000

Integration savings Integration expenses

(incl. Capex)

Net synergies

Logistics &

Investment

Mgmt.

6%Finance & ICT

10%

Human

Resources

18%

Marketing

10%

KEY INTEGRATION ACTIVITIES: Phase II

Consolidation of production facilities

• Previously outsourced bottling of Cockta for Croatian and B&H market has been replaced with in-house bottling in Apatovec,

Consolidation of information technology

• Consolidation of business IT solutions on several regional markets based on the assessment of business systems for

Real estate management

• Real estate and financial assets portfolio management with the goal to sell all assets that are not in accordance with the company’s

1616

house bottling in Apatovec, Croatia

• Transfer of coffee roasting for Croatian market from previously outsourced producer to own production plant in Izola, Slovenia

• Currently, feasibility studies are being prepared for transfer of other production from outsourced producers to own production plants

of business systems for operational support within Droga Kolinska and Atlantic Grupa and selection of best practice

• Redefining current IT contracts related to telecom services, licences and outsourced IT support

in accordance with the company’s core business operations – e.g. sale of 13% ownership in Croatian broadcasting channel – RTL Hrvatska

• Currently the company assesses sale of several real estate that are not in accordance with the company’s core business operations

� Second phase of integration activities started in the 2H11

CONTENT



1717

2011 FINANCIALS

2012 OUTLOOK

600

630620 2011A

2011E100

69 70

2011A

2011E

RESULTS in LINE WITH GUIDANCE

EURm 101.7% 98.2% 96.9%

1818

0

200

400

Sales

0

50

EBITDA EBIT

41 43

� 2011 result normalized

FINANCIAL OVERVIEW in FY11

Key figures (EURm) 2011 Actual*2010 Pro-forma

consolidated

2011 Actual*/

2010

Revenues 637 610 4.3%

Sales 630 602 4.8%

EBITDA 67 73 -8.1%

EBIT 45 39 13.8%

Net profit 7 20 -62.5%

EBITDA margin 10.6% 12.1% -148bp

EBIT margin 7.1% 6.5% +56bp

1919

Impact on 2011 profitability:

� Positive one-off impact: Successful divestment of 13% stake in RTL Croatia with one-off gain of EUR 1.6m

� Negative impact: surge in raw material prices on global commodity markets

� Higher interest expenses amid financing acquisition of Droga Kolinska and FX loss

� PPA (purchase price allocation) impact from Droga Kolinska acquisition of EUR 3.0m

*Unaudited; EUR/HRK rate at 7.5 (to avoid FX impact)

EBIT margin 7.1% 6.5% +56bp

Net profit margin 1.2% 3.2% -208bp

Normalised EBITDA 69 70 -1.7%

Normalised EBIT 41 37 12.1%

Normalised Net profit 4 17 -77.7%

Normalised EBITDA margin 10.9% 11.7% -72bp

Normalised EBIT margin 6.5% 6.1% +43bp

Normalised Net profit margin 0.6% 2.8% -219bp

SALES OVERVIEW in FY11

630602

EURm

451

109

34 37

424

121

26 32

2011 Actual*

2010 Pro-forma consolidated

EURm

2020*Unaudited; EUR/HRK rate at 7.5 (to avoid FX impact)

2011 Actual* 2010 Pro-forma

consolidated Own brands Principal brands Private label Farmacia

EURm 2011 Actual* % of total2010 Pro-forma

consolidated% of total 2011/2010

Croatia 178 28% 184 30% (3%)

Serbia 161 25% 142 24% 13%

Slovenia 80 13% 77 13% 4%

B&H 48 8% 53 9% (9%)

Other ex YU 39 6% 35 6% 13%

Key WEU (GER, UK, ITA) 47 8% 47 8% 1%

Russia & EE 19 3% 24 4% (20%)

Other markets 59 9% 40 6% 47%

TOTAL 630 100% 602 100% 5%

PROFITABILITY DYNAMICS – surge in raw material prices on global commodity markets

2121

� On the pro-forma consolidated basis, production materials

expenses increased 21% yoy in FY11

� Increase in production materials expenses came on the back of:

* Increase in coffee costs compared to 2010, whereby coffee as

the key raw material in Atlantic Grupa’s raw materials mix

accounted for around 36% of total production materials expenses

* Increase in sugar, powdered milk and cocoa costs compared to

2010

� Growth in coffee costs largely came on the back of rocketing of

coffee prices on global commodity markets (expressed through

coffee “C” futures contract as the world benchmark for Arabica

coffee) by 55% on average in 2011 as opposed to 2010

� Going forth:

* Global coffee beans inventories are on historically low levels and

inventories in weeks of consumption are in downtrend, thus

further putting upward pressure on the coffee prices

* On the other side, supply/demand balance shows an excess of

supply, thus putting a downward pressure on the coffee prices

BALANCE SHEET as of 31/12/2011

EUR000

Property, plant and equipment 157,910 22.6% 165,113 24.0%

Intangible as sets 246,708 35.3% 243,618 35.4%

Other non-current as sets 11,059 1.6% 15,072 2.2%

Non-current assets 415,677 59.4% 423,803 61.6%

Inventories 71,157 10.2% 67,069 9.7%

Trade & other receivables 149,093 21.3% 146,685 21.3%

Ass ets held for sa le 20,155 2.9% 15,802 2.3%

Other current ass ets 5,797 0.8% 4,144 0.6%

Cas h and cash equiva lents 37,810 5.4% 30,930 4.5%

Current assets 284,013 40.6% 264,630 38.4%

Total assets 699,690 100.0% 688,433 100.0%

31/12/2011 Actual* 31/12/2010 Restated

2222*Unaudited figures; EUR/HRK rate at 7.5 (to avoid FX impact)

Total assets 699,690 100.0% 688,433 100.0%0.0%

Capital and reserves 192,166 27.5% 185,578 27.0%

Non-controlling interest 9,056 1.3% 8,484 1.2%

Borrowings 312,997 44.7% 267,704 38.9%

Deferred tax l iabi l i ties 15,549 2.2% 15,320 2.2%

Other non-current l iabi l i ties 19,538 2.8% 13,089 1.9%

Non-current liabilities 348,084 49.7% 296,113 43.0%

Trade & other payables 93,242 13.3% 94,900 13.8%

Borrowings 49,904 7.1% 93,033 13.5%

Other current l iabi l i ties 7,238 1.0% 10,326 1.5%

Current liabilities 150,385 21.5% 198,259 28.8%

Total liabilities 498,469 71.2% 494,371 71.8%

Total equity and liabilities 699,690 100.0% 688,433 100.0%

2011 CASH FLOW

EUR000 Jan - Dec 2011* Jan - Dec 2010

Net cash flow from operating activities 20,974 6,385

Net CFO before interest and income tax paid 50,694 13,485

Cash flow from investing activities (1,974) (210,751)

O/w Capex (12,182) (4,644)

Net cash flow from / (used in) financing activities (12,120) 225,352

Net increase / (decrease) in cash and cash equivalents 6,880 20,986


� Net cash from operating activities amounted to EUR 21.7 million FY11 and EUR 13.3 million in FY10, once transaction

costs excluded

Net increase / (decrease) in cash and cash equivalents 6,880 20,986

Cash and cash equivalents at beginning of period 30,930 9,944

Cash and cash equivalents at end of period 37,810 30,930

FINANCIAL INDICATORS in 2011

29%

8%

2%

13%

4%

Total Equity and Liabilities structure at 31/12/11

Capital and reserves

Long-term debt

Short-term debt

Bond

Trade and other

payables

EURm Actual 2011* 2010 Pro-forma cons.

Net debt 333 333

Total assets 700 688

Equity 201 194

Current ratio 1.9 1.3

Gearing ratio 62.3% 63.2%

Interest coverage ratio** 2.3 5.3

Net debt/EBITDA** 4.8 4.7

Capex 12.2 4.6

2424

Debt indicators:

� Net debt – to – normalized EBITDA ratio at 4.8 times

� Normalized EBITDA – to – interest expense ratio at 2.3 times

� Gearing ratio at 62.3%

In accordance with the policy of active debt management, Atlantic Grupa used interest rate swaps to fix significant portion of

its long-term financial liabilities during 1Q11

* 2010 reflects consolidation of Balance sheet and Pro-forma consolidation of Profit & Loss account

EUR/HRK rate at 7.5 (to avoid FX impact)

Call for: prudent debt management and

delivery of planned synergies

44% Other liabilitiesCapex 12.2 4.6

Cash flow from operating activities*** 22 13

*Unaudited figures ; **Normal ized; *** Excluding impact of trans action cos ts

CONTENT



2525

2011 FINANCIALS

2012 OUTLOOK

STRATEGIC GUIDANCE

� Further delivery of planned synergy potentials both on sales and costs side following finalisation

of the first integration phase of Atlantic Grupa and Droga Kolinska;

� Focus on execution of the second integration phase (consolidation of production facilities,

information technology consolidation, real estate portfolio management) as the basis for further

improvement of operating efficiency;

� Further focus on organic growth through innovations in product categories and active brand

management (new flavours, modernized packaging, product line extensions), strengthening the

regional character of distribution business and further development of certain distribution

2626

Strategic management

guidance

regional character of distribution business and further development of certain distribution

channels as HoReCa segment;

� Meeting financial commitments on regularly basis coupled with active debt and financial cost

management;

� Cost management through the CORE program and optimisation of operating processes on both

centralised and lower levels, aiming to improve operating efficiency;

� Prudent liquidity management;

� Continuous analysis of global commodity markets with particular focus on coffee, sugar, cocoa

and milk powder as well as more active application of hedging instruments;

� More focused development of risk management on all levels in the company.

OUTLOOK 2012: FINANCIAL OVERVIEW

EURm2012 Guidance

(excluding one-offs)2011 Normalized 2012/2011

Sales 662 630 5.0%

EBITDA 73 69 6.3%

EBIT* 51 47 9.5%


* In 2011, EBIT was calculated on normalised EBITDA level, however depreciation and amortization expenses

have not been normalized for the PPA impact in order to make it more comparable to 2012 guidance.

EBIT* 51 47 9.5%

Interest expense 30 30

Appendix

2828

FY11 CONSOLIDATED INCOME STATEMENT (UNAUDITED)

EUR000 FY11 % of sales

FY10

Pro-forma

consolidated

% of salesFY10 Stand-

alone% of sales

FY11/FY10

Pro-forma

consolidated

FY11/FY10

Stand-alone

Turnover 636,585 101.0% 610,072 101.4% 306,926 101.5% 4.3% 107.4%

Sales 630,369 100.0% 601,731 100.0% 302,485 100.0% 4.8% 108.4%

Other income 6,216 1.0% 8,341 1.4% 4,440 1.5% (25.5%) 40.0%

Operating costs 569,829 90.4% 537,448 89.3% 277,587 91.8% 6.0% 105.3%

Cost of merchandise sold 158,356 25.1% 160,219 26.6% 144,763 47.9% (1.2%) 9.4%

Change in inventories (770) (0.1%) 755 0.1% (1,254) (0.4%) n/a n/a

Production materials 210,658 33.4% 174,558 29.0% 38,810 12.8% 20.7% 442.8%

Energy 8,165 1.3% 7,110 1.2% 1,619 0.5% 14.8% 404.4%


Energy 8,165 1.3% 7,110 1.2% 1,619 0.5% 14.8% 404.4%

Services 41,125 6.5% 43,675 7.3% 21,778 7.2% (5.8%) 88.8%

Personnel costs 84,673 13.4% 87,734 14.6% 43,459 14.4% (3.5%) 94.8%

Marketing expenses 41,762 6.6% 41,972 7.0% 19,826 6.6% (0.5%) 110.6%

Other expenses 28,399 4.5% 30,853 5.1% 17,138 5.7% (8.0%) 65.7%

Other (gains)/losses, net (2,541) (0.4%) (9,428) (1.6%) (8,552) (2.8%) (73.0%) (70.3%)

EBITDA 66,756 10.6% 72,625 12.1% 29,339 9.7% (8.1%) 127.5%

EBIT 44,646 7.1% 39,234 6.5% 21,998 7.3% 13.8% 103.0%

EBT 10,512 1.7% 22,436 3.7% 16,416 5.4% (53.1%) (36.0%)

Taxes 3,193 0.5% 2,913 0.5% 2,177 0.7% 9.6% 46.7%

Net income 7,319 1.2% 19,524 3.2% 14,240 4.7% (62.5%) (48.6%)

Minority interest 1,105 0.2% 1,745 0.3% 1,574 0.5% (36.7%) (29.8%)

Net income II 6,213 1.0% 17,778 3.0% 12,666 4.2% (65.1%) (50.9%)

FY11 NORMALIZED CONSOLIDATED INCOME STATEMENT (UNAUDITED)

EUR000 FY11% of

sales

FY10

Pro-forma

consolidated

% of

sales

FY10 Stand-

alone

% of

sales

FY11/FY10

Pro-forma

consolidated

FY11/FY10

Stand-alone

Turnover 636,585 101.0% 609,256 101.3% 306,110 101.2% 4.5% 108.0%

Sales 630,369 100.0% 601,731 100.0% 302,485 100.0% 4.8% 108.4%

Other income 6,216 1.0% 7,525 1.3% 3,625 1.2% (17.4%) 71.5%

Operating costs 567,614 90.0% 539,084 89.6% 279,223 92.3% 5.3% 103.3%

Cost of merchandise sold 155,322 24.6% 160,219 26.6% 144,763 47.9% (3.1%) 7.3%

Change in inventories (770) (0.1%) 755 0.1% (1,254) (0.4%) n/a n/a

Production materials 210,658 33.4% 174,558 29.0% 38,810 12.8% 20.7% 442.8%


Energy 8,165 1.3% 7,110 1.2% 1,619 0.5% 14.8% 404.4%

Services 40,540 6.4% 41,089 6.8% 19,192 6.3% (1.3%) 111.2%

Personnel costs 84,673 13.4% 87,734 14.6% 43,459 14.4% (3.5%) 94.8%

Marketing expenses 41,762 6.6% 41,972 7.0% 19,826 6.6% (0.5%) 110.6%

Other expenses 28,209 4.5% 26,402 4.4% 12,687 4.2% 6.8% 122.3%

Other (gains)/losses, net (946) (0.2%) (755) (0.1%) 122 0.0% 25.3% (878.5%)

EBITDA 68,971 10.9% 70,172 11.7% 26,887 8.9% (1.7%) 156.5%

EBIT 41,222 6.5% 36,782 6.1% 19,546 6.5% 12.1% 110.9%

EBT 6,922 1.1% 19,884 3.3% 13,864 4.6% (65.2%) (50.1%)

Taxes

Net income 3,729 0.6% 16,751 2.8% 11,467 3.8% (77.7%) (67.5%)

Minority interest 1,105 0.2% 1,745 0.3% 1,574 0.5% (36.7%) (29.8%)

Net income II 2,624 0.4% 15,006 2.5% 9,893 3.3% (82.5%) (73.5%)

BALANCE SHEET as of 31 December 2011 (UNAUDITED)

EUR000

Property, plant and equipment 157,910 22.6% 165,113 24.0%

Intangible assets 246,708 35.3% 243,618 35.4%

Non-current investments 181 0.0% 4,851 0.7%

Long-term receivables 2,869 0.4% 3,165 0.5%

Derivative financia l ins trument 1,149 0.2% - 0.0%

Deferred tax assets 6,860 1.0% 7,057 1.0%

Non-current assets 415,677 59.4% 423,803 61.6%

Inventories 71,157 10.2% 67,069 9.7%

Trade & other receivables 149,093 21.3% 146,685 21.2%

ST investments 47 0.0% 692 0.2%

Assets held for sa le 20,155 2.9% 15,802 2.3%

Prepaid income tax 3,317 0.5% 2,393 0.3%

Derivative financia l ins trument 2,433 0.3% 1,059 0.2%

31/12/2011 Actual* 31/12/2010 Restated



Cash and cash equiva lents 37,810 5.4% 30,930 4.5%

Current assets 284,013 40.6% 264,630 38.4%

Total assets 699,690 100.0% 688,433 100.0%0.0%

Capital and reserves 192,166 27.5% 185,578 27.0%

Non-controlling interest 9,056 1.3% 8,484 1.2%

Borrowings 312,997 44.7% 267,704 38.9%

Deferred tax l iabi l i ties 15,549 2.2% 15,320 2.2%

Other non-current l iabi l i ties 4,848 0.7% 5,123 0.7%

Derivative financia l ins trument 8,319 1.2% - 0.0%

Provis ions 6,371 0.9% 7,966 1.2%

Non-current liabilities 348,084 49.7% 296,113 43.0%

Trade & other payables 93,242 13.3% 94,900 13.8%

Borrowings 49,904 7.1% 93,033 13.5%

Current income tax l iabi l i ties 1,674 0.2% 2,213 0.3%


Provis ions 2,808 0.4% 3,401 0.5%

Current liabilities 150,385 21.5% 198,259 28.8%

Total liabilities 498,469 71.2% 494,371 71.8%

Total equity and liabilities 699,690 100.0% 688,433 100.0%

2011 CASH FLOW

EUR000 2011 Actual* 2010 Actual AG

Net profit 7,319 14,240

Income tax 3,193 2,177

Depreciation and amortization 22,110 7,341

Loss / (gain) on di sposal of property, plant and equipment 8 (6,620)

Ga in on sa le of assets ava i lable for sa le (1,595) 0

Value adjustment of current assets 6,845 2,800

Interest income (1,513) (1,740)

Interest expense 29,489 5,156

Other 4,515 462

Changes in working capital (17,489) (9,511)

(Decrease) / increase in provis ions for ri sks and charges (2,187) (819)

Interest pa id (25,116) (3,633)

Income tax pa id (4,604) (3,467)


Income tax pa id (4,604) (3,467)

Net cash flow from operating activities 20,974 6,385

Purchase of tangible and intangible assets (12,182) (4,644)

Proceeds from sale of assets ava i lable for sa le 6,262 0

Proceeds from sale of property, plant and equipment 1,812 1,433

Acquis ition of subs idiary and non-control l ing interest (778) (226,085)

Loans and depos i ts given 1,665 16,778

Dividend received 0 30

Purchase of financial assets (267) 0

Interest received 1,513 1,737

Net cash flow used in investing activities (1,974) (210,751)

Capi ta l increase 0 80,668

Purchase of treasury shares (338) 0

New borrowings* 145,885 159,207

Repayment of borrowings (157,013) (10,579)

Proceeds from bond i ssued (515) 0

Dividend pa id to minori ty interest (140) (1,148)

Dividend pa id to equity holders of the Company 0 (2,797)

Net cash flow from / (used in) financing activities (12,120) 225,352

Net increase in cash and cash equivalents 6,880 20,986

Cash and cash equivalents at beginning of period 30,930 9,944

Cash and cash equivalents at end of period 37,810 30,930

ATLANTIC GRUPACompany of Added Value

3333

13th Annual Emerging Europe Investment Conference

New York City, March 15-16, 2012

Atlantic Grupa UniCredit New York March 2012 the leading soft drinks producersin ex-YUarea CEDEVITA, ... Atlantic Grupa successfully acquired regional food & beverages company ...

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