Atlantic Grupa d.d. — M&A Activity 2019

Dec 16, 2019

ATLANTIC GRUPA d.d. Miramarska 23 10 000 Zagreb

SECURITY: ATGR / ISIN: HRATGRRA0003 3ATG / ISIN: HRATGRO216A9 LEI: 3157002G3ENYCZEB1A25 HOME MEMBER STATE: Croatia REGULATED MARKET SEGMENT: Prime Market of the Zagreb Stock Exchange

Zagreb, December 16, 2019

Atlantic Signs a Contract Worth More Than HRK 100 Million with Saponia and Kandit

Starting next year, Saponia and Kandit will entrust the distribution of their brands for the Serbian and Slovenian markets to the leading regional distributor

At the end of the year, the leading regional detergent manufacturer Saponia and the confectionery industry company Kandit signed a contract with Atlantic Grupa, thus ensuring business growth in 2020. By the beginning of January next year, the two companies will have entrusted the distribution of their brands for the Serbian and Slovenian markets to Atlantic Grupa as the leading regional distributor of fast-moving consumer goods. This contract marks the beginning of cooperation between three reputable companies, with an expected annual turnover of more than HRK 100 million.

"In an effort to take a further step forward with our brands, thus bringing them even closer to consumers, we have opted for a reliable partner with a proven track record. We are certain that the value of Atlantic's distribution, along with continued provision of all necessary forms of support on the part of our system to Saponia's and Kandit's brands, will lead to the expected progress in Slovenia and Serbia, where we are launching our partnership", comments Dajana Mrčela, President of Saponia's Management Board, with regards to the cooperation.

"Serbia and Slovenia represent two extremely important markets for us, and when it comes to the organization of our distribution, they are also labeled as strategic. By introducing Kandit's Rum Bar and Saponia's Faks and Ornel as well as other strong regional leaders into the Atlantic's distribution portfolio, we further strengthen our offer on these markets, on which we are already strongly present with a range of products produced by reputable international companies such as Red Bull, Ferrero, Unilever or Rauch, as well as with our own leading brands in their respective categories, such as Grand kafa, Barcaffè, Argeta, Cedevita or Smoki", said Srećko Nakić, Atlantic Grupa's Vice President for Distribution.

For almost three decades, Atlantic Grupa has been developing its distribution business in accordance with the best international industry practices and the needs of local markets and companies. The partnership with Saponia and Kandit, following excellent results achieved by expanding the distribution portfolio in the region in 2018, once again confirms the continued focus on the development of distribution as an important lever for the development of overall business.

Saponia and Kandit owe their excellent position on the market to continued investments in brand development as well as their long tradition. With their 125 and 100 years of tradition respectively, Saponia and Kandit constitute important pillars within their industry branches in Croatia, which is also continuously confirmed on the markets of the region. Backed by a new distributor, the two companies now expect an additional increase in the market share and turnover in Serbia and Slovenia.

Atlantic Grupa d.d.