Atlantic Grupa Company of Added Value

Opatija, September 2009

CONTENT

General overview of Atlantic Grupa Overview of the 1H09 and FY08 financial figures Divisional overview FY09 Guidance Cedevita GO!

VERTICALLY INTEGRATED COMPANY IN CONSUMER HEALTHCARE BUSINESS Key brands:

The leading European company in the sports nutrition
Leader in the vitamin instant drinks in the SEE region Producer of the No1 Croatian brands in the VMS and the OTC The largest private pharmacy chain in Croatia

MULTIPOWER
CEDEVITA DIETPHARM FARMACIA

The leading FMCG distributer in the SEE region

Distinguished International Brands (Ferrero, Wrigley,

Duracell, Johnson & Johnson)

Business Card of Atlantic Grupa

Headquarter Market position in Croatia
Employees
(as of June 30, 2009)

Zagreb, Croatia
1 1,847 30 9 EUR278m (+20% yoy) EUR290m
3

Markets Representative offices FY08 sales Expected FY09 sales

VERTICALLY INTEGRATED COMPANY IN THE CONSUMER HEALTHCARE BUSINESS

Vertically integrated organization: This business model enables: Exploring synergies among divisions Running vertically integrated organization Production: CHC division, SFF division; VMS/OTC production Distribution Retail: Pharmacy chain

FMCG DISTRIBUTION

CONSUMER HEALTHCARE

Distribution Division

Consumer Health Care

Sports and Functional Food Division

Pharma Division
VMS

Division
Own brands Principal brands Vitamin drinks and teas Cosmetics and personal care

Sports and functional food

OTC Pharmacy chain

37% of sales

25% of sales

24% of sales

14% of sales

SYNERGIES

DEVELOPMENT CYCLE
2008

European company

Acquisition of pharmacies Farmacia IPO Viiki komerc (Macedonia) Multivita (Serbia) Fidifarm (Croatia) Representative office Moscow Power Gym (affiliated company in UK) Haleko Italy (affiliated company in Italy) Haleko

Development based on:

2007 2007 2007 2007 2006

Carefully thought diversification strategy in the Consumer HealthCare segment

Extensive M&A track record Foray into the selected industry niches
Regional company
2004 2004 2003 2003 2001 2001 2001
Melem Atlantic Ljubljana Atlantic Skopje Neva Cedevita Atlantic Beograd

2005
2005

Representative office Sarajevo

Croatian company
1999 1996 1994 1994 1992 1991
Cooperation Johnson & Johnson Cooperation Duracell Distribution centre Rijeka Distribution centre Osijek Distribution centre Split Cooperation Wrigley

SALES GROWTH 1993-2009e

300 In EURm 250

290 278 247

CAGR 1993-2009e: +33.1%

150

201

200

150

100

86 64 36 41

92

104

50

3
0 1993

6
1994

13
1995

19

29

35

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008 2009E

CROATIAN COMPANY

REGIONAL COMPANY

EUROPEAN COMPANY

GEOGRAPHICAL PRESENCES

Companies and representative offices across Europe Presence on 30 markets

OVERVIEW OF THE 1H09 FINANCIAL FIGURES

In HRKm Revenues Sales EBITDA EBIT Net profit after MI EBITDA ex. oneoffs EBIT ex. one-offs Net profit ex. oneoffs

1H09 1,075.6 1,061.1 97.0 76.9 41.6 87.2 67.1 31.7

1H08 961.6 951.4 80.5 59.8 27.7 80.5 59.8 27.7

1H09/1H08 11.9% 11.5% 20.6% 28.6% 49.8% 8.3% 12.1% 14.2%

Double-digit growth despite unfavourable macroeconomic milieu

Strong growth rates ex. oneoffs:

Sales EBITDA EBIT Net profit +11.5% yoy +8.3% yoy +12.1% yoy +14.2% yoy

The one-off gain of HRK9.9m refers to purchase of minority interest in Cedevita from the German development bank DEG

SALES PROFILE
The dominant market Croatia
Geographic sales profile in 1H09

* Growth of 12.1% yoy despite GDP and private consumption drop

* Growth amidst new distribution deals, launch of Cedevita GO!, opening of new specialised stores/pharmacies Serbia the strongest growth driver * Growth of 39.2% in CER terms

* Growth drivers: Cedevita GO!, growth of the HoReCa channel

61.9% Croatia 2.9% Slovenia 2.2% Italy 11.6% Germany 3.8% BiH 10.6% Other 5.3% Serbia 1.8% UK

The key West European markets * Growth in CER terms in spite of deteriorated economic environment

1H09
Own brands up 3.5% yoy
* Reflecting the launch of Cedevita GO! Principal brands up 26.1% yoy Private label down 3.1% yoy Farmacia up 12.4% yoy
44.7% Own brands 6.5% Private label 37.7% Principal brands 11.2% Farmacia
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PROFITABILITY DYNAMICS
Optimisation of business operations
EBITDA
110 100

97.0 87.2
9.1%

EBITDA EBITDA ex. non-recurring gain

Cost savings

(in HRKm)

90 80 70 60

80.5
8.2% 8.5%

EBITDA EBIT Net profit

+8.3% +12.1% +9.8%

Ex. one-off gain

1H09

1H08

EBIT
90 EBIT 80

NET PROFIT
60 Net profit 50

76.9 67.1
7.3%

EBIT ex. non-recurring gain

48.1

Net profit ex. non-recurring gain

(in HRKm)

70 60 50 40 1H09

(in HRKm)

59.8
6.3% 6.3%

40

4.5%

38.2

34.8
3.7%

30

3.6%

20
1H08

1H09
10

1H08

FINANCIAL INDICATORS in 1H09

Key highlights:
in HRKm Net debt Total assets Equity Interest coverage ratio* Current ratio Gearing ratio Capex Operating cash flow
*Ex. non-recurring gain

1H09 296.4 1,746.5 712.9 6.0 1.6 29.4% 47.9 27.5

1H08 297.1 1,485.7 620.9 6.1 1.4 32.4% 34.4 28.1

Very stable balance sheet Liquidity maintenance Strong current ratio

Maintenance of stable cash flow from operating activities

Available ca. HRK200m in cash for new acquisitions and capex financing

Key highlights: Strong interest coverage Favourable gearing ratio Exploitation of available IR hedging instruments Management pays special focus on these given generally arguably unfavourable financing environment

(the long-term financial debt cost fixed below 5%)

No refinancing requirement - favourable debt structure with the majority maturing in 2011

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OVERVIEW OF THE FY08 FINANCIAL FIGURES

In HRKm Revenues Sales EBITDA EBITDA margin EBIT EBIT margin Net profit

FY08 2,024.5 2,002.9 169.3 8.45% 129.4 6.46% 68.6

FY07 1,699.1 1,670.0 132.3 7.92% 95.1 5.70% 46.4

FY08/FY07 19.1% 19.9% 27.9% +53 bps 36.0% +77 bps 47.9%

Strong organic growth: Sales +6% yoy EBIT +19% yoy EBITDA+14% yoy Net profit +24% yoy Acquisition of pharmacies contributed to the top-line growth with +13% - HRK221m Geographical profile The dominant market Croatia up 28.1% The largest organic growth driver Serbia up 21.7% yoy Growth in CER terms on all key West European markets

12

DISTRIBUTION DIVISION
The leading regional distributer of FMCGs with top global and regional brands Sales growth drivers Continuously adding new distribution deals focus on diversification of distribution portfolio to control sales volatility risk
533.5
520 460 400 1H09 1H08

37% of sales

700 640 580

Sales (HRKm) 616.2 +15.5%

Growth across all distribution channels retail HoReCa Extensive know-how New distribution deals as growth drivers in FY09:

Profitability growth drivers EBIT up 32.3% yoy in 1H09 and 12.0% yoy in FY08 Economies of scale lower marginal costs in distribution Developed network of distribution centres in the SEE central warehouse in Jankomir Bargaining power Exploring brand synergies

Biscuits and salted snacks under Karolina brand Ferrero program in Slovenia Nestles NESCAFE assortment in the HoReCa channel

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CONSUMER HEALTHCARE DIVISION

Integrates R&D, manufacturing, packaging, marketing and sales of: Cedevita vitamin instant drinks No1 producer in the SEE region Personal care products: Plidenta toothpaste, Rosal lip balm

25% of sales

Growth drivers
280

Sales (HRKm) 262.3 +7.8% 243.2

Strength of the Cedevita brand Atlantics best selling brand New distribution channel HoReCa Markets with high consumption potential: Serbia, Slovenia

260

240

220

200 1H09 1H08

50

EBIT (HRKm) 44.9 +38.5%

45

Profitability growth drivers

Best-margin division Cedevita in new distribution channel Cedevita GO!

40 35 30 25 1H09
14

32.4

1H08

SPORTS AND FUNCTIONAL FOOD DIVISION

Integrates R&D, manufacturing, packaging, marketing Key brand: Multipower for sports and functional nutrition Growth drivers
260 247.2 240 Sales (HRKm) +3.4% 239.0

24% of
sales

Strength of the Multipower brand Atlantics second best selling brand The leading market position in Germany, Norway, Sweden, Markets with the highest growth: Russia, Sweden, Spain Successfully completed restructuring the highest EBIT growth of 81.0% yoy among divisions in FY08 EBIT up 21.2% yoy in 1H08

220

200 1H09 1H08

Innovative product line Launch of endurance line Active Multipower Consumer base expansion (outside gyms and fitness centres) Cooperation with the cycling equipment manufacturer Shimano

15

PHARMA DIVISION
R&D, manufacturing, packaging, marketing and sales of VMS and OTC Key brand in the VMS and OTC segment - Dietpharm 14% of sales

The largest private pharmacy chain in Croatia - Atlantic Farmacia

Growth drivers
160 150.8 150 140 130 120 1H09 1H08 +9.3% 137.9 Sales (HRKm)

Acquisition of pharmacies/launch of specialised stores new distribution channel

Focus on non-prescription drugs in pharmacies New product launches in the VMS and the OTC segment Launch of drug wholesale business Differentiated strategic focus on VMS and OTC through exclusive distribution deals Vertical integration within division: Production (Dietpharm)

Distribution (Wholesaler Fidifarm)

Retail (Farmacia)
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FY09 GUIDANCE DURING UNFAVOURABLE MACROECONOMIC SETUP

In HRKm Revenues Sales EBITDA EBIT

2009 Plan 2,166 2,143 194 147

2008 2,024.5 2,002.9 169.3 129.4

2009/2008 7.0% 7.0% 14.3% 13.4%

Guidance: (i) reflects organic development (ii) does not include one-off positive effects from the 1Q09 and expected positive net effect of approximately HRK45m from the sale of Neva location and the subsequent transfer to Rakitje location
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FY09 GUIDANCE DURING UNFAVOURABLE MACROECONOMIC SETUP Strategic focus of Atlantic Grupa during negative economic developments on: Creation of new opportunities for the organic growth and growth via acquisition Cost efficiency Financial stability enabling flexibility for initiatives development for the companys long-term growth Liquidity maintenance Business process improvements

Screening potential acquisition in times of lowered acquisition valuation premiums

In segments that strategically fit the companys further development: (i) Pharmacies in Croatia (ii) Companies, brands and market shares in the food supplements segment in the EU market (CEE, Germany, Scandinavia) (iii) Companies, brands and market shares in the sports nutrition in the EU market (iv) Distribution companies with higher margin distribution portfolio

18

CEDEVITA GO! New distribution channel for Cedevita consumption on the go Cedevita covers all consumption channels Exploring synergies potential among divisions: R&D, production and packaging Consumer Healthcare division Own distribution infrastructure Synergies opportunities in the Sports and Functional Food divisions portfolio Development project worth of HRK75m Payback period of 5-6 years The value-creating IRR Region-wise distribution (Croatia, Serbia, Slovenia, Macedonia, BiH) Favourable impact on the Groups profit margins
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integrated

in

the

ATLANTIC GRUPA ON THE CAPITAL MARKET

6,000

ATGR-R-A vs. Crobex

Crobex ATGR-R-A

1,000

Performance (with PPS of HRK 730 as of 17/09/2009): ATGR-R-A CROBEX +52.1% ytd +26.2% ytd

800 4,500 600 3,000 400 1,500 200

Outperformance resulting from: Strong ownership structure Strong business fundamentals All domestic mandatory pension funds in top 10 shareholders accounting for 46.74% of free float
Shareholder structure on September 09, 2009

0 Nov-07

Feb-08 May-08 Aug-08 Nov-08 Feb-09 May-09 Aug-09

Share info & valuation PPS (as of 17/09/09) MCap (HRK 000) Av. daily turnover (HRK) EV (HRK 000) EV/EBITDA EV/EBIT EV/sales EPS (HRK) P/E

12-month Trailing 730.0 1,802,973 629,981 2,128,995 12.10 15.58 1.02 29.45 24.79

52.57% E. Tedeschi 7.73% L. Tedeschi Fiorio 7.14% DEG 30.47% Free float 1.93% Management 0.16% Treasury shares

* Calculated based on figures ex. one-off

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CONTACTS

Lada Tedeschi Fiorio, Vice President for Business Development lada.tedeschi.fiorio@atlantic.hr Zoran Stankovic, CFO zoran.stankovic@atlantic.hr Maja Barac, Head of Investor Relations

maja.barac@atlantic.hr
+385 1 24 13 908

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Q&A
Thank you for your attention!

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