Atlantic Grupa

Company of Added Value

Belgrade, May 2009

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CONTENT

General overview of Atlantic Grupa

Overview of the FY08 financial figures
Overview of 1Q09 financial figures
Divisional overview
FY09 Guidance
Cedevita GO!

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VERTICALLY INTEGRATED COMPANY IN CONSUMER HEALTHCARE BUSINESS

Key brands:
The leading European company in the sports nutrition MULTIPOWER
Leader in the vitamin instant drinks in the SEE region CEDEVITA
Producer of the No1 Croatian brands in the VMS and the OTC DIETPHARM
The largest private pharmacy chain in Croatia FARMACIA
The leading FMCG distributer in the SEE region Distinguished International
Brands (Ferrero, Wrigley,
Duracell, Johnson & Johnson)
FY08 sales EUR280m (+20% yoy)

Employees 1,800

Markets 30

Expected FY09 sales EUR290m

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VERTICALLY INTEGRATED COMPANY IN THE CONSUMER HEALTHCARE BUSINESS

FMCG DISTRIBUTION CONSUMER HEALTHCARE

Distribution Division Consumer Health Care Sports and Functional Pharma Division
Division Food Division
VMS
Own brands Vitamin drinks and teas Sports and functional food OTC
Principal brands Cosmetics and personal Pharmacy chain
care
38% of sales 24% of sales 24% of sales 14% of sales

SYNERGIES

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DEVELOPMENT CYCLE

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GEOGRAPHICAL PRESENCES

Companies and
representative offices
across Europe

Presence on 30
markets

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SALES GROWTH 1993-2008

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SHAREHOLDER STRUCTURE

Stable ownership structure

All domestic pension funds among top 10 shareholders
East Capital - the leading asset manager specialising in Eastern Europe

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ATLANTIC GRUPA AND THE CAPITAL MARKETS

Stable ownership structure

+ Strong business fundamentals
+ Defensive nature of the company (lower-beta company)
= Pace of the ATGR-R-A share decline slower than the drop pace in the local benchmark
Crobex in 2008

Road show in 2008 in the US

East Capital award for the Discovery of the Year in 2008

Improved profile arising from increased transparency of the companys business model

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OVERVIEW OF THE FY08 FINANCIAL FIGURES

Strong business results

In line with the management
guidance

Double-digit growth rates:

Sales +20%
EBITDA +28%
EBIT +36%
Net profit +48%

Acquisition of pharmacies
contributed to the top-line
growth with +13% - HRK221m
Pharmacy business margin
accretive for the company

Strong organic growth:

Sales +6%
EBIT +19%

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SALES PROFILE
The dominant market Croatia
* Reported growth + 28.1% yoy
* Organic growth +5.7% yoy

Serbia the largest organic growth driver

* Reported growth +21.7% yoy

The key West European markets

* Growth in CER terms

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PROFITABILITY DYNAMICS
EBITDA
Organic growth

EBIT + 18.5%
EBITDA + 14.2%
Net profit + 23.7%

Strong focus and commitment to:

Cost optimisation
Business process improvements
Exploring synergies among divisions

NET PROFIT
EBIT

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PERFORMANCE INDICATORS in FY08
Key highlights:

Very stable balance sheet

Liquidity maintenance
Strong current ratio

Strong operating cash flow

Strong interest coverage

Favourable gearing ratio

Management pays special focus on

these given arguably unfavourable
financing environment

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OVERVIEW OF THE 1Q09 FINANCIAL FIGURES

Top-line growth in all divisions

Distribution +15.6%
CHC +8.4%
SFF +8.6%
Pharma +11.2%

Geographical profile:
Croatia +13.1% to HRK302.5m
Serbia +24.4% to HRK25.2m
Germany +13.1% to HRK63.9m

EBIT up 51.1% yoy on:

Non-recurring gain
Business process improvements

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PROFITABILITY DYNAMICS in 1Q09
EBITDA ex. one-off
Key highlights:

One-off: the non-recurring gain on acquisition of

minority interest in Cedevita from DEG following the
exercise of the call option

Business process improvements:

Entering the drug wholesale business

aiming for distribution synergies and cost
savings
EBIT ex. one-off
Construction of new Neva facility spurring
more efficient production

Bearing fruit of last years improvements:

Establishing central supply department

Improving distribution-logistics activities
Optimised investments in marketing

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PERFORMANCE INDICATORS in 1Q09
Key highlights:

Very stable balance sheet

Liquidity maintenance
Strong current ratio

Strong operating cash flow

Strong interest coverage

Favourable gearing ratio
Using IR hedging instruments

Management pays special focus on

these given generally arguably
unfavourable financing environment

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 DISTRIBUTION DIVISION
The leading regional distributer of FMCGs with top global and regional brands in their
categories 38% of
sales
Sales growth drivers

New distribution deals

focus on diversification of distribution portfolio

Growth across all distribution channels

retail
HoReCa

Extensive know-how

Profitability growth drivers

Economies of scale
lower marginal costs in distribution
Developed network of distribution centres in the SEE
Bargaining power
Exploring brand synergies

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CONSUMER HEALTHCARE DIVISION

Integrates R&D, manufacturing, packaging, marketing and sales of: 24% of sales
Cedevita vitamin instant drinks No1 producer in the SEE region
Personal care products: Plidenta toothpaste, Rosal lip balm

Growth drivers

Strength of the Cedevita brand

Atlantics best selling brand

New distribution channel HoReCa

Markets with high consumption potential: Serbia, Slovenia

Cedevita entering new distribution channel

Consumption on the GO Cedevita GO!

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 SPORTS AND FUNCTIONAL FOOD DIVISION
Integrates R&D, manufacturing, packaging, marketing
24% of sales
Key brand: Multipower for sports and functional nutrition

Growth drivers

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 among divisions in FY08

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PHARMA DIVISION
R&D, manufacturing, packaging, marketing and sales of VMS and OTC
14% of sales
Key brand in the VMS and OTC segment - Dietpharm
The largest private pharmacy chain in Croatia - Atlantic Farmacia

Growth drivers

Acquisition of pharmacies/launch of specialised stores

new distribution channel for the Group
synergies across the Groups distribution portfolio

Strategic focus on non-prescription drugs

New product launches in the VMS and the OTC segment

Pharmacy business margin-accretive for Atlantic

Market share Rang in

in Croatia category

Dietpharm VMS and OTC 22% 1

32 Pharmacies and 6
5.5%
specialized stores

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FY09 GUIDANCE

Guidance ex. one-offs

One-off from non-recurring gain in 1Q09

Net impact from the sale of Neva production location and transfer to new facility of EUR5m

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FY09 GUIDANCE

Even though Atlantic Grupa operates in stable industry, the management is well aware of challenges
created by the macroeconomic setup and financing environment

Strict focus on: (i) Liquidity maintenance

(ii) Cost management
(iii) Business processes improvements
(iii) Implementation of new projects

No refinancing requirements, with the major portion maturing in 2011

Favourable gearing ratio of 30.4% at the end of 1Q09

Using available hedging instruments fixing financing cost of LT liabilities with IR swap
below 5%
Interest coverage of 5.1x in 1Q09
Favourable current ratio of 1.7x

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FY09 GUIDANCE

New programs set to create opportunities even in challenging

economic times:

Consumer Healthcare division

Launch of Cedevita GO! Cedevita in the new distribution channel

Distribution division
New distribution agreements signed at the end of 2008/beginning of
2009
Distribution of Karolina products estimated annual turnover of
HRK125m
Distribution of the Ferrero program in Slovenia estimated annual
turnover of EUR16m
Nestles NESCAFE assortment in the HoReCa channel estimated
annual turnover of HRK15m

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FY09 GUIDANCE

New programs set to create opportunities even in challenging

economic times:

Pharma division
5 new pharmacies from the previously acquired licenses
1 specialised store within the scope of strategic cooperation with
Agrokor (already opened)

Sports and Functional Food division

Redesign of Multipower
Regulatory approvals for the Multipower product line in Russia
Launching new ENDURANCE product line for cycling and jogging
Taking Multipower outside of gyms and fitness centres targeting
wider scope of sportsmen

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FY09 GUIDANCE

Screening potential acquisition targets that would secure value-creative IRR

Atlantic Grupa has substantial know-how and experience in due diligence and acquisition activities

HRK200m available cash for new acquisitions

Targeting: (i) Pharmacies in Croatia and the region

(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

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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 integrated in the
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 26

Contacts

Lada Tedeschi Fiorio, Vice President for the 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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