Release of result for first three quarters of 2015
November 30th, 2015
Disclaimer
This presentation does not constitute or form part of, and should not be construed as, any offer or invitation to subscribe for, underwrite
or otherwise acquire, any securities of the Company or any member of its group nor should it or any part of it form the basis of, or be
relied on in connection with, any contract to purchase any securities of the Company or any member of its group or any commitment
whatsoever.
This document may not be distributed and may not be reproduced in any manner whatsoever. Any distribution or reproduction of the
attached document in whole or in part is unauthorized. No representation or warranty, express or implied, is made as to the fairness,
accuracy or completeness of the information contained herein and no reliance should be placed on it. None of the Company, their
advisers or any other person accepts any liability for any loss howsoever arising, directly or indirectly, from the issue of this document or
its contents.
This presentation includes certain forward-looking statements. Actual results could differ materially from those included in the forwardlooking statements due to various risks and uncertainties, including but not limited to changes in business, economic and competitive
conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings and availability of
financing.
Today’s presenters
Mr. Hrvoje Habuš
Executive Director for Strategy and Capital Markets
Mr. Zdravko Marić
Executive Director for Strategy and Capital Markets
2
1. Results for the first three quarters of 2015
2. Recent developments
3. Business guidelines for 2015
4. Q&A
Key highlights – first three quarters of 2015
1
TOTAL SALES increased by 64.1% to HRK 36,889.2 million
2
EBITDA increased by 56.0% to 3,340.2 million
Core KPIs
3
EBITDA MARGIN decreased from 9.5% to 9.1%
4
CAPEX increased by 27.5% to HRK 942.0 million
5
OPERATING CF BEFORE CHANGES IN WORKING CAPITAL increased by 85.2% to HRK 3,394.0 mn
4
Understanding better what has happened
Topline
evolution
 Strong top line growth of 64.1 per cent, from HRK 22,474.0 million to HRK 36,889.2 million, is predominantly
related to the Mercator acquisition.
 EBITDA increased by 56.0 per cent, from HRK 2,141.5 million to 3,340.2 million, while EBITDA margin decreased
from 9.5 per cent to 9.1 per cent. Decrease in EBITDA margin is the result of the consolidation of Mercator which
has a lower profitability when compared to that of the rest of the Restricted Subsidiaries.
Profitability
performance
 In Retailing and wholesale the EBITDA increased from HRK 1,088.9 million to HRK 2,182.8 million representing
a 100.5 per cent increase with EBITDA margin increasing from 6.1 per cent to 6.7 per cent, on an unconsolidated
basis. Strong growth in EBITDA was predominantly driven by the Mercator acquisition and synergy realization.
 In Food manufacturing and distribution the EBITDA increased from HRK 1,076.0 million to HRK 1,195.6
million representing a 11.1 per cent increase. EBITDA margin increased from 13.1 per cent to 14.1 per cent, on an
unconsolidated basis, predominantly due to better performance of Ice Cream and Frozen Food and Water and
Beverages.
Operating cash  Operating cash flow before changes in WC increased from HRK 1,833.1 million to HRK 3,394.0 million or 85.2 per
flows
cent predominantly due to the Mercator acquisition.
5
Strong growth in topline and net profit
In HRK million
30.09.2014
% total sales
30.09.2015
% total sales
2015/2014
22,059.9
414.1
22,474.0
98.2%
1.8%
100.0%
35,584.8
1,304.3
36,889.2
96.5%
3.5%
100.0%
61.3%
215.0%
64.1%
191.1
0.9%
242.1
0.7%
26.7%
-53.6
-15,818.2
-1,834.7
-2,080.1
-793.3
-1,037.0
0.2%
70.4%
8.2%
9.3%
3.5%
4.6%
132.2
-26,285.0
-2,957.4
-3,500.9
-1,229.8
-1,185.3
0.4%
71.3%
8.0%
9.5%
3.3%
3.2%
n/a
66.2%
61.2%
68.3%
55.0%
14.3%
1,014.1
-25.1
-20,436.7
4.5%
0.1%
90.9%
1,279.5
-5.2
-33,509.7
3.5%
0.0%
90.8%
26.2%
-79.3%
64.0%
344.4
-1,518.0
-1,173.6
1.5%
6.8%
5.2%
496.5
-1,861.0
-1,364.5
1.3%
5.0%
3.7%
44.2%
22.6%
16.3%
Profit before tax
863.7
3.8%
2,014.9
5.5%
133.3%
Taxation
-126.4
0.6%
-246.8
0.7%
95.2%
Profit/(loss) for the year
737.2
3.3%
1,768.1
4.8%
139.8%
-99.0
0.3%
n/a
CONTINUING OPERATIONS:
Sales Revenue
Sales of services
Total sales
Other income
Change in inventories of finished goods and works in progress
Cost of material and goods sold
Cost of services
Staff cost
Depreciation and amortization
Other costs
Excess of fair value of net assets over the cost of aquisition,
net of written-off goodwill
Sale of properties, net
Financial income
Financial expense
Share of gain/loss of associates
DISCONTINUED OPERATIONS:
Loss after tax for the year from discontinued operations
PROFIT/(LOSS) FOR THE YEAR
Attributable to
Equity holders of the parent
Minority interest
737.2
3.3%
1,669.1
-4.5%
126.4%
665.7
71.5
3.0%
0.3%
1,409.8
259.3
3.8%
0.7%
111.8%
262.7%
6
Same growth trends seen in Q3
In HRK million
CONTINUING OPERATIONS:
Sales Revenue
Sales of services
Total sales
Other income
Change in inventories of finished goods and works in progress
Cost of material and goods sold
Cost of services
Staff cost
Depreciation and amortization
Other costs
Excess of fair value of net assets over the cost of aquisition
net of writen-off goodwill
Sale of properties, net
Financial income
Financial expense
Share of gain/loss of associates
Profit before tax
Taxation
Profit/(loss) for the year
DISCONTINUED OPERATIONS:
Loss after tax for the year from discontinued operations
PROFIT/(LOSS) FOR THE YEAR
Attributable to
Equity holders of the parent
Minority interest
Q3 2014
% of total sales
Q3 2015
% of total sales
2015/2014
8,333.9
154.5
8,488.4
98.2%
1.8%
100.0%
13,108.2
438.3
13,546.5
96.8%
3.2%
100.0%
57.3%
183.8%
59.6%
53.5
0.6%
70.9
0.5%
32.6%
1.8
-5,978.8
-719.5
-722.5
-291.0
-302.9
0.0
1,014.1
-34.7
-6,980.0
0.0%
70.4%
8.5%
8.5%
3.4%
3.6%
0.0%
11.9%
0.4%
82.2%
92.5
-9,641.1
-1,044.7
-1,191.3
-438.7
-482.9
0.0
1,279.5
-2.3
-11,358.0
0.7%
71.2%
7.7%
8.8%
3.2%
3.6%
0.0%
9.4%
0.0%
83.8%
5088.3%
61.3%
45.2%
64.9%
50.8%
59.4%
n/a
26.2%
-93.4%
62.7%
85.9
-599.2
-513.2
1.0%
7.1%
6.0%
82.1
-782.0
-699.9
0.6%
5.8%
5.2%
-4.4%
30.5%
36.4%
0.0
0.0%
0.0
0.0%
n/a
995.1
11.7%
1,488.6
11.0%
49.6%
-44.0
0.5%
-134.7
1.0%
206.0%
951.1
11.2%
1,353.9
10.0%
42.4%
0.0
0.0%
99.1
0.7%
n/a
213.9
2.5%
-315.1
2.3%
-247.3%
246.1
633.5
2.9%
7.5%
-187.1
1,281.8
1.4%
9.5%
-176.0%
102.3%
7
First three quarters 2014/2015 - total sales revenues
evolution
40.00
+0.12
35.00
30.00
+0.30
+13.99
25.00
20.00
36.89
15.00
10.00
22.47
5.00
0.00
Q3 2014 Total sales
Retailing and Wholesale
Food Manufacturing and
Distribution
Other*
Q3 2015 Total sales
* In HRK bn; Including Agrokor d.d.
8
Divisional overview for the first three quarters of 2015
Food manufacturing and Distribution
30.09.2014.
30.09.2015.
(HRK million)
Sales to external customers
Intersegmental sales
Total sales
4,429.1
3,768.0
4,547.8
3,908.5
Retailing and Wholesale
2015/2014
2.7%
(HRK million)
Sales to external customers
3.7%
Intersegmental sales
Total sales
81.4%
64.6%
80.7%
Operating profit
644.6
1,298.2
101.4%
Operating profit margin (%)
3.6%
4.0%
0.4%
-1.6%
Depreciation
444.4
884.7
99.1%
EBITDA
1,088.9
2,182.8
100.5%
6.1%
6.7%
0.7%
749.4
874.3
16.7%
Operating profit margin (%)
9.1%
10.3%
1.2%
EBITDA margin (%)
31,172.5
1,335.6
Operating profit
321.4
17,179.8
32,508.0
3.2%
326.6
2015/2014
811.2
8,456.3
EBITDA
30.09.2015.
17,991.0
8,197.0
Depreciation
30.09.2014.
1,076.0
1,195.6
11.1%
13.1%
14.1%
1.0%
Food Manufacturing and Distribution
 Unconsolidated sales in this division increased by 3.2 per cent
compared to the same period last year, from HRK 8,197.0
million to HRK 8,456.3 million.
 EBITDA increased, from HRK 1,076.0 million to HRK 1,195.6
million representing a 11.1 per cent increase. EBITDA margin
increased from 13.1 per cent to 14.1 per cent, on an
unconsolidated basis, predominantly due to better
performance of Ice Cream and Frozen Food and Water and
Beverages segments.
EBITDA margin (%)
Retailing and Wholesale
 Retailing and Wholesale division in first three quarters of 2015
posted an increase of 80.7 per cent compared to the previous
year with unconsolidated sales increasing from HRK 17,991.0
million to HRK 32,508.0 million.
 EBITDA increased from HRK 1,088.9 million to HRK 2,182.8
million representing a 100.5 per cent increase.
 EBITDA margin increased from 6.1 per cent to 6.7 per cent.
 Strong growth in both sales and EBITDA was predominantly
driven by the Mercator acquisition and realisation of synergies.
9
Divisional overview for Q3 2015
Retailing and Wholesale
Food m anufacturing and Distribution
(HRK million)
Sales to external customers
Q32014.
Q32015.
2015/2014
Q32014.
Q32015.
2015/2014
6,506.2
11,278.3
73.3%
327.8
488.3
49.0%
6,834.0
11,766.5
72.2%
1,730.6
1,850.8
6.9%
(HRK million)
Sales to external customers
Intersegmental sales
1,448.4
1,521.1
5.0%
Intersegmental sales
Total sales
3,178.9
3,371.9
6.1%
Total sales
Operating profit
300.4
372.3
23.9%
Operating profit
297.3
563.6
89.6%
Operating profit margin (%)
9.4%
11.0%
16.9%
Operating profit margin (%)
4.3%
4.8%
10.1%
Depreciation
110.4
108.0
-2.2%
Depreciation
173.0
323.2
86.8%
470.2
886.7
88.6%
6.9%
7.5%
9.5%
EBITDA
EBITDA margin (%)
410.8
480.2
16.9%
EBITDA
12.9%
14.2%
10.2%
EBITDA margin (%)
Food manufacturing and distribution
 Unconsolidated sales in this division recorded an increase of
6.1 per cent compared to the same period last year, from
HRK 3,178.9 million to HRK 3,371.9 million.
 EBITDA also incresed by 16.9 per cent from HRK 410.8
million to HRK 480.2 million, predominantly due to better
performance of Ice Cream and Frozen Food and Water and
Beverages segments.
 EBITDA margin increased from 12.9 per cent to 14.2 per
cent.
Retailing and wholsale
 Retailing and Wholesale division in Q3 2015 posted an
increase of 72.2 per cent on the unconsolidated basis,
compared to the same period last year, increasing from
HRK 6,834.0 million to HRK 11,766.5 million.
 EBITDA increased from HRK 470.2 million to HRK 886.7
million representing a 88.6 per cent increase.
 EBITDA margin increased from 6.9 per cent to 7.5 per
cent.
 Strong growth in both sales and EBITDA was
predominantly driven by the Mercator acquisition, whilst the
increase in EBITDA is also the result of the realization of
synergies.
10
Cash flow
HRK mn
1-9 2014
1-9 2015
2015/2014
Result from operating activities before changes in working capital
Changes in working capital 1*
Changes in working capital 2**
1,833.1
(178.3)
108.7
3,394.0
(1,085.8)
(683.5)
85.2%
509.1%
-728.8%
Net cash inflow from operating activities before interest and taxes
1,763.5
1,624.7
-7.9%
(1,370.6)
54.2
(1,745.1)
95.7
27.3%
76.5%
447.1
(24.7)
-105.5%
Gross investments in Long Term Assets (Capex)
Proceeds from disposals of Long Term Assets
(738.7)
78.2
(942.0)
283.8
27.5%
262.7%
Free operating cash flow
(213.4)
(683.0)
220.0%
Interest and taxes
Dividends and interest received
Net cash provided from operating activities
* relates to receivables, inventory and suppliers
** relates to other short term assets and liabilities
Overview
 Cash flow from operating activities before changes in
working capital had a 85.2 per cent increase predominantly
due to the Mercator acquisition.
Capex and acquisitions
4,000,000
3,200,000
2,400,000
 The increase of operating cash flows were offset by changes
in working capital 1 and 2. Working capital 1 was negatively
impacted by further reduction of accounts payable and by the
regular increase of inventories as a result of the harvest
season
1,600,000
800,000
0
Q3 2009
Q3 2010
Q3 2011
Q3 2012
Addition to propert ies
Figures in HRK ‘000
Q3 2013
Q3 2014
Q3 2015
Acquisitions
11
Balance sheet
HRK mn
31.12.2014
30.9.2015
2015/2014
ASSETS
Non-current assets
Inventory and live stock and crops
Accounts receivable
Cash and cash equivalents
Other assets
31,148.9
7,730.0
6,258.7
2,681.3
2,584.7
32,374.1
8,284.6
6,381.8
2,639.4
3,169.2
3.9%
7.2%
2.0%
-1.6%
22.6%
TOTAL ASSETS
50,403.6
52,849.1
4.9%
TOTAL EQUITY
7,192.4
8,609.5
19.7%
LIABILITIES
Long term financial liabilities
Short term financial liabilities
Accounts payable
Other liabilities
20,827.7
2,860.5
15,946.4
10,769.0
20,132.0
5,304.7
15,412.7
11,999.7
-3.3%
85.4%
-3.3%
11.4%
TOTAL EQUITY AND LIABILITIES
50,403.6
52,849.1
4.9%
12
Debt structure
Capitalization structure as of 30 September 2015 (EUR mn)
Agrokor Consolidated
Leverage (Consolidated)
Leverage (Restricted)
Senior Notes 2019
297
0.51x
0.68x
Senior Notes 2020
589
1.02x
1.36x
Sberbank Term Loan
595
1.03x
1.37x
VTB Term Loan
358
0.62x
0.82x
Club Term Loan
300
0.52x
0.69x
Other bank debt
132
0.23x
0.30x
Short term debt
182
0.32x
0.42x
2,453
4.25x
5.65x
Total Agrokor Restricted Debt
Mercator debt
Leverage (Mercator)
900
1.56x
n/a
6.27x
Total Consolidated debt
3,333
5.77x
n/a
n/a
Total Consolidated Net Debt
2,987
5.17x
n/a
n/a
Total Agrokor Restricted Net Debt
2,150
n/a
4.95x
n/a
866
n/a
n/a
6.04x
Mercator net debt

As of 30 September 2015 net leverage of the consolidated and restricted group amounted to 5.17x and 4.95x respectively

This is yet another quarter where the Group experienced deleveraging. Net leverage as at 31 March 2015 amounted to 5.82x
on the consolidated level and 5.33x for the restricted group.

Approximately 20% of our debt is short-term (including current portion of long-term debt)
13
1. Results for the first three quarters of 2015
2. Recent developments
3. Business guidelines for 2015
4. Q&A
Recent developments
FINANCING
• We signed in October 2015 €200 million club term loan facility with BNP Paribas, Credit Suisse, Goldman
Sachs and J.P. Morgan. This facility matures in April 2017.
• Sale of other non-core businesses and assets is ongoing. We are currently exploring the sale of Mercator’s:
(i) Intersport – sports goods stores, (ii) Modiana – fashion apparel stores, (iii) M Tehnika – technical goods
stores, and (iv) Mercator–Emba – food company.
M&A
• Konzum acquired Kozmo in November, a drugstore chain with approximately 70 stores.
• Sale of other non-core businesses and assets is ongoing.
MONETIZATION
• We commenced the sale and leaseback process of Mercator’s real estate properties in Slovenia in May.
After receiving non-binding bids we selected a preferred partner with whom we entered into exclusivity
agreement. We expect the transaction to close by the end of the year.
15
1. Results for the first three quarters of 2015
2. Recent developments
3. Business guidelines for 2015
4. Q&A
Business guidelines for 2015
Synergies
Operating
profitability
Realization of synergies arising from the combination of Mercator and Agrokor
Focus on the efficiency of operating businesses (increasing profitability)
Sale of non-core
assets
Sale of assets which are not used in the operations of the core businesses
Sale of non-core
operations
Sale of stakes in companies whose businesses do not represent the core activity of the group
Indebtedness
Prolonging maturity profile
Investments
Capital discipline
Business
development
Online platform with the potential of becoming a significant value driver going forward
17
1. Results for the first three quarters of 2015
2. Recent developments
3. Business guidelines for 2015
4. Q&A
Thank you!
Q&A