Slovenia and Croatia Investor Day, Ljubljana, 10 December 2019 · Croatia 29.9% Serbia 23.1% Slovenia 16.7% Bosnia and Herzegovina 7.8% Other regional markets* 6.4% Key European markets**

Slovenia and Croatia

Investor Day, Ljubljana, 10 December 2019

Atlantic Grupa

Today

Atlantic Grupa is one of the

leading food and beverages

companies in the SEE

region with the renowned

regional brands that are,

alongside the product range

of external partners,

supported by own

distribution system in the

region

2

16— production facilities

in 5 countries18— distribution

centres 5500— employees on

12 markets40— product presence

on over 40 markets

▪ Leading distributor of

multinational brands

▪ Founded in 1991

▪ FY18 sales: EUR 701m

▪ FY18 EBITDA*: EUR 75m

▪ MCap (06.12.2019) : EUR 578m

*Normalized

** FX rate EUR/HRK of 7.5 is used for all data and periods to

exclude effects of exchange rate changes 3

Slovenia

Austria

Croatia

BiHMacedonia

Serbia

Russia

Management Board Ownership structure

Emil Tedeschi

Founder & President of the Management Board

Zoran StankovićVice President Finance

Neven VrankovićVice President Corporate Affairs

ATLANTIC GRUPA AS THE BEST MANAGED COMPANY IN 2015

1st in CROATIA

2nd in the CEE region

1st in the FOOD & BEVERAGE sector in the CEE

4

Srećko NakićVice President Distribution

Lada Tedeschi FiorioVice President Strategy, business development and growth

Enzo SmrekarVice President Savoury spreads, Donatand internationalization

50,2%

32,9%

10,2%

5,8% 0,9%

Emil Tedeschi

Pension funds

Others

Lada Tedeschi Fiorio

Management

1 6 12 17 27 33 36 4161

81 90 102145

186223

267293 302

602630

657 674 682721

681 698 701

0

100

200

300

400

500

600

700

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2010* 2011 2012 2013 2014 2015 2016 2017 2018

Sales in EURm

CAGR 1993-2018:

+28.4%

2005-2018

❖2010: Acquisition of DROGA KOLINSKA

❖2007: IPO

❖2005: Acquisition of MULTIPOWER

2000-2004

❖ Regional expansion

❖ 2001: Acquisition of CEDEVITA

1990’s

❖ Distribution centres across

Croatia

❖ Various distribution

cooperations

DIS

TR

IBU

TIO

N

DIS

TR

IBU

TIO

N &

PR

OD

UC

TIO

N

VE

RT

ICA

L

INT

EG

RA

TIO

N

National company Regional company

GROWTH BASED ON INNOVATIONS AND M&AEuropean company

CEDEVITA

MULTIPOWER

DROGA KOLINSKA

2010*: Pro-forma consolidated with Droga Kolinska5

11,7% 10,9% 11,3% 11,8% 11,7%

10,5%

9,3%

9,9%10,8%

6,1%

7,4%8,1% 8,5% 8,6%

7,5%

6,0%6,5%

7,4%

2,8%

1,5%2,3%

4,0% 4,2% 4,5%

3,2%4,0%

5,0%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

Pro forma

cons 2010

2011 2012 2013 2014 2015 2016 2017 2018

Margin overview

EBITDA margin (normalized) EBIT margin (normalized) Net profit margin (normalized)

6

HISTORICAL DEVELOPMENTS OF KEY INDICATORS

Normalised: excluding one off items.

602

630

657667

682

721

681698

701

540

560

580

600

620

640

660

680

700

720

740

Pro forma cons 20102011 2012 2013 2014 2015 2016 2017 2018

Sales, EUR millions

4,7 4,8

4,2

3,53,2

3,03,2

2,3

1,5

0,0

1,0

2,0

3,0

4,0

5,0

6,0

Pro forma

cons

2010

2011 2012 2013 2014 2015 2016 2017 2018

Net debt/EBITDA

11,3%

4,7%

7,6%

12,7% 12,4%13,1%

8,2%

12,9%

10,5%

11,8%

9,4%10,4%

11,7%12,7% 12,5%

9,8%

12,9%12,0%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

Pro forma

cons 2010

2011 2012 2013 2014 2015 2016 2017 2018

ROaE, ROCE

ROaE ROCE

❖ Stable shareholder structure

❖ In October 2019, historically

highest level of market

capitalization

PERFORMANCE ON CROATIAN CAPITAL MARKET

7

Valuation 30 June 2019 2018 2017

Last price in reporting period 161,3 154,7 114,9

Market capitalization* (in EUR millions) 537,9 515,7 383,2

Average daily turnover (in EUR thousands) 44,5 58,2 47,5

EV (in EUR millions) 631,8 631,3 541,8

EV/EBITDA** 7,4 8,4 7,9

EV/EBIT** 11,4 12,2 11,9

EV/sales 0,9 0,9 0,8

EPS (in HRK)** 85,5 78,4 63,2

P/E** 14,2 14,8 13,6

*Closing price multiplied by the total number of shares

**Normalised data

-20,0%

-10,0%

0,0%

10,0%

20,0%

30,0%

40,0%

2015 2016 2017 2018 29.11.2019

%

ATGR

CROBEX

CROBEX 10

8

TOP-NOTCH BRAND PORTFOLIO

COMPANIES BEHIND TOP RANKED BRANDS IN ADRIA REGION:

SLO

CRO

SRB

B&H

MAC

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

ADRIA

REGION

Source: Valicon brand strength survey 2016

9

TOP-NOTCH BRAND PORTFOLIO

Source: Valicon brand strength survey 2016

Top 10 - Region

1Coca Cola

2Milka

3

4Vegeta

5

6

7Orbit

8

9Nivea

10Jana

Top 5 - Slovenia Top 5 - Croatia Top 5 - Serbia Top 5 - B&H Top 5 - Macedonia

Jana Plazma

Coca Cola Coca Cola Coca Cola Coca Cola Bitolski

Milka Coca Cola

Fructal Vegeta Moja kravica Colgate

Jamnica Milka Chipsy Stobi Flips

10

ATLANTIC GRUPA DISTRIBUTION

STRENGTH OF DISTRIBUTION

▪ The leading distributors of high-quality top FMCG brands

(both own and principal) in SEE

▪ Developed network with 18 distribution centers

▪ Direct access on over 60,000 sales points

▪ Over 1,000 delivery vehicles

▪ Developing distribution in Austria

11

12

Year of records

Savoury spread Argeta became number one in Europe

Settlement of Agrokor Grupa creditors voted in favour

New distribution contracts (Beiersdorf, Mars, Hipp and Red Bull)

Sale of Neva

Atlantic Grupa the first issuer on the ZSE prime market

Last portion of Sports and Functional foods divested

Record high dividend and highest market capitalization

New logistics and distribution centre in Croatia

New Management Board for new growth

Sale of Dietpharm

KEY BUSINESS DEVELOPMENTS

13Normalised data.

RESULTS IN LINE WITH EXPECTATIONS

All data in EUR millions.

2018A/2018E: 99.2

2018A/2017A: 100.3

2018A/2018E: 102.8

2018A/2017A: 109.3

2018A/2018E: 103.1

2018A/2017A: 113.1

0

200

400

600

800

1.000

Sales

701 707 698

2018A

2018E

2017A

0

20

40

60

80

100

EBITDA EBIT

75

52

73

50

69

46

2018A

2018E

2017A

❖ SBU Coffee: growth in all key markets and key categories.

❖ SBU (Sweet and Salted) Snacks: growth in Serbia, B&H, Montenegro and

Slovenia.

❖ SBU Beverages: growth of the brands Cedevita, Donat Mg, Cockta and

bottled waters.

❖ SBU PPC: decrease due to baby food. Excluding baby food, sales growth

+2.2%.

❖ SBU Savoury Spreads: growth of Argeta in all regional markets, Western

European markets and the USA.

❖ SBU SFF: disinvestment of private label production

❖ SDU and DU: growth in all key markets, except Russia, Germany and

Switzerland

Comparative period has been adjusted to reflect current period reporting.*Other segments include DU Austria, DU Macedonia, BU Gourmet and business activities not allocated to business and distribution units (headquarters and support functions in Serbia, Slovenia, Bosnia and Herzegovinaand 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, DUs and GDAM through which the products were distributed.

14

SALES BY SBU&SDU IN 2018(EUR 000) 2018 2017 2018/2017

SBU Coffee 149,8 144,8 3,5%

SBU (Sweet and Salted) Snacks91,7 88,8 3,3%

SBU Beverages94,8 88,2 7,5%

SBU Pharma and Personal Care86,4 91,6 (5,7%)

SBU Savoury Spreads85,2 75,8 12,4%

SBU Sports and Functional Food17,8 53,4 (66,6%)

From which private label production0,0 25,9 (99,8%)

SDU Serbia167,1 158,7 5,3%

SDU Croatia168,7 150,1 12,4%

DU Slovenia121,1 116,3 4,1%

Global distribution network

management49,4 53,2 (7,0%)

Other segments*44,4 41,5 7,1%

Reconciliation**(375,7) (363,9) n/a

Sales700,7 698,4 0,3%

Comparative period has been adjusted to reflect current period reporting.*Other segments include DU Austria, DU Macedonia and business activities not allocated to business and distribution units (headquarters and support functions in Serbia, Slovenia, Bosnia and Herzegovina 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, DUs and GDAM through which the products were distributed.

15

SALES BY SBU&SDU IN H1 2019

(EUR 000)H1 2019 H1 2018

H1 2019/

H1 2018

SBU Coffee 71,0 70,8 0,3%

SBU Beverages 50,3 48,6 3,5%

SBU Savoury Spreads 46,5 42,4 9,7%

SBU (Sweet and Salted) Snacks 42,5 43,7 (2,7%)

SBU Pharma and Personal Care 41,7 41,7 (0,2%)

SBU Sports and Functional Food 3,7 8,7 (57,3%)

SDU Croatia 84,3 75,4 11,8%

SDU Serbia 78,5 78,3 0,2%

SDU Slovenia 59,3 56,6 4,8%

Global distribution network

management 24,5 25,7 (4,6%)

Other segments* 22,1 18,8 17,4%

Reconciliation** -181,2 -179,0 n/a

Sales 343,2 331,7 3,5%

❖ SBU Coffee: growth of roast and ground coffee, espresso and instant

Turkish coffee Black’n’Easy.

❖ SBU Beverages: growth of the brands Cedevita, Cockta and bottled

waters.

❖ SBU Savoury Spreads: growth of Argeta in all regional markets, Germany

and Austria.

❖ SBU (Sweet and Salted) Snacks: decrease due chips category and

absence of sales in Kosovo.

❖ SBU PPC: decrease due to baby food. Excluding baby food, sales growth

+5.3%.

❖ SBU SFF: totally divested in April 2019.

❖ SDU and DU: growth in all key markets.

16

SALES BY MARKETS AND SEGMENTS

* Macedonia, Montenegro, Kosovo

** Germany, Switzerland, Austria, Sweden

2018 2017

33%

24%

17%

8%

7%

5%

3%2% Croatia 33.0%

Serbia 24.3%

Slovenia 17.3%

Bosnia and Herzegovina 8.0%

Other regional markets* 6.7%

Key European markets** 5.2%

Russia and CIS 3.4%

Other markets 2.1%

30%

23%17%

8%

6%

8%

4%4%

Croatia 29.9%

Serbia 23.1%

Slovenia 16.7%

Bosnia and Herzegovina 7.8%

Other regional markets* 6.4%

Key European markets** 8.1%

Russia and CIS 4.4%

Other markets 3.6%

25%

21%

13%

13%

12%

12%3%

1%

Principal brands 25.2%

Coffee 21.4%

Beverages 13.5%

Sweet and salted snacks 13.1%

Savoury spreads 12.1%

Pharma & Personal care 11.5%

Sports and Functional Food 2.5%

Gourmet 0.7%

22%

21%

12%

13%

11%

12%

8%

1%Principal brands 22.2%

Coffee 20.8%

Beverages 12.6%

Sweet and salted snacks 12.7%

Savoury spreads 10.9%

Pharma & Personal care 12.5%

Sports and Functional Food 7.7%

Gourmet 0.6%

• Coffee, Beverages, Sweet and Salted, Savoury spreads: increase in sales and higher gross profit margin, despite higher marketing investments

• Pharma and Personal Care: increase inprofitability of Farmacia, but decrease of baby food brand Bebi and Multivita in Russia

• Sports and Functional Food: in restructuring process

• Distribution: increase in sales with optimum cost management

• Other segments: including one-off items that are main reason for negative movement.

17

OPERATING RESULTS OF SBU&SDU IN 2018(EUR million) 2018 2017 2018/ 2017

SBU Coffee 34,6 28,0 23,6%

SBU (Sweet and Salted) Snacks 17,5 16,0 9,4%

SBU Beverages 22,7 21,6 5,5%

SBU Pharma and Personal Care 6,0 9,1 (34,1%)

SBU Savoury Spreads 19,6 17,5 12,1%

SBU Sports and Functional Food (8,6) (7,8) (9,2%)

SDU Serbia 4,1 3,7 12,1%

SDU Croatia 4,1 3,7 11,3%

DU Slovenia 7,0 6,5 6,9%

Global Distribution Network Management 2,0 1,6 22,6%

Other segments* (36,3) (22,2) (63,8%)

Group EBITDA 72,8 77,6 (6,2%)

*Other segments include BU Gourmet, DU Macedonia, DU Austria 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.

• Coffee: lower prices of raw coffee and favorable FX

• Beverages, Savoury spreads: increase in sales and higher gross profit margin, despite higher marketing investments

• Snacks: lower sales and higher marketing investments

• Pharma and Personal Care: higher sales of Farmacia and Dietpharm

• Distribution: increase in sales with optimum cost management

• Other segments: higher profitability of DU Austria and one-off items are main reason for positive movement.

18

OPERATING RESULTS OF SBU&SDU IN H1 2019

*Other segments include DU Macedonia, DU Austria 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.

(HRK million) H1 2019H1 2019 w/o

IFRS 16H1 2018

H1 2019 w/o

IFRS 16/H1

2018

SBU Coffee 16,9 16,8 15,2 10,0%

SBU Beverages 13,3 13,2 12,2 7,9%

SBU (Sweet and Salted) Snacks 8,2 8,1 9,4 (13,7%)

SBU Pharma and Personal Care 3,5 2,3 2,1 10,5%

SBU Savoury Spreads 10,9 10,8 9,7 11,4%

SBU Sports and Functional Food (1,0) (1,0) (3,2) 67,4%

SDU Serbia 2,3 1,2 1,5 (23,7%)

SDU Croatia 4,5 2,9 2,4 21,0%

DU Slovenia 3,6 3,1 2,7 14,1%

Global Distribution Network

Management0,9 0,9 1,4 (33,9%)

Other segments* (9,9) (10,9) (13,9) 21,7%

Group EBITDA 53,1 47,3 39,5 19,6%

❖ Focus on further deleveraging

❖ Net debt vs normalised EBITDA ratio fell from 1.5 at the end of 2018 to 1.2 at the end of first half 2019.

❖ Interest coverage ratio increased.

❖ The stability of operations is best reflected in the increase in cash flow from operating activities.

19

FINANCIAL INDICATORS

45%

14%

9%

4%

22%

6%

Capital and reserves 45.0%

Long term borrowings 13.8%

Short term borrowings 9.4%

Bond 3.6%

Trade and other payables 22.1%

Other liabilities 6.1%

(in HRK millions) 30.6.2019 31.12.2018

Net debt 699,4 862,9

Total assets 5.148,6 4.935,3

Total Equity 2.497,2 2.398,4

Current ratio 1,36 1,44

Gearing ratio 21,9% 26,5%

Net debt/EBITDA TTM 1,2 1,5

(in HRK millions) H1 2019 H1 2018

Interest coverage ratio 27,3 10,8

Capital expenditure 110,8 99,7

Cash flow from operating activities 212,7 124,6LTM: Last 12 months

* Balance sheet items and financial indicators were for practicality and comparability reasons calculated without the application of IFRS 16

Leases. The impact of IFRS 16 Leases on financial indicators will be presented at the end of 2019.

20

GUIDANCE TRACK RECORD

❖ Atlantic Grupa listed on the Zagreb Stock

Exchange on November 19th 2007

❖Since 2008 Atlantic Grupa publishes guidance

for the following financial year and delivers it

0

1.000

2.000

3.000

4.000

5.000

6.000

Sales EBITDA EBIT

4.930

559399

4.964

550385

Reported Guidance99%

102%104%

0

100

200

300

400

500

600

700

800

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Sales (EURm)

93% 99%103%

99%98% 98%

102%

102%

99% 99%100%

0

10

20

30

40

50

60

70

80

90

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

EBITDA (EURm)

100%101%98%

102%101%

96%

100%98%

100%99%

103%

0

10

20

30

40

50

60

70

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

EBIT (EURm)

104%95%99%

104% 101%96%

100%

97%99%

99%103%

21

STRATEGIC GUIDANCE FOR 2019

*Normalised

**Guidance for 2019 is comparable to 2018 data and it does not apply new IFRS 16.

EURm 2019 Guidance 2018* 2019/2018

Sales 707 701 0,8%

EBITDA 84 75 11,3%

EBIT 59 52 15,3%

Interest expense

(loans and bond)4 5 (21,1%)

STRATEGIC MANAGEMENT GUIDANCE

▪ Focus on: (i) strengthening the position of prominent regional brands, (ii) internationalisation of certain brands, (iii)

development of distribution operations by strengthening the existing and acquiring new principals, and (iv) further

disinvestment of non-core business operations that do not have a significant growth potential.

▪ Expecting lower average prices of raw coffee on the global commodity markets, which will be partly negatively affected by

the EUR/USD exchange rate.

▪ Expecting capital investments of approximately EUR 31m.

▪ Effect of non-core disinvestments as well as potential acquisitions are not included in the stated expectations.

22

BUSINESS UNITS

23

SBU COFFEE 21.4 % — share in sales

EUR 150m— sales in 2018

24

SBU BEVERAGES 13.5 % — share in sales

EUR 95m — sales in 2018

25

SBU SNACKS 13.1 % — share in sales

EUR 92m— sales in 2018

26

SBU SAVOURY SPREADS12.1 % — share in sales

EUR 85m— sales in 2018

27

SBU PHARMA AND PERSONAL CARE11.5 % — share in sales

EUR 86m— sales in 2018

Atlantic Grupa d.d.

Miramarska 23

10000 Zagreb, HR

T +385 1 2413 900

http://www.atlantic.hr/en/

28