Ilirija d.d. — Board/Management Information 2018

Mar 19, 2018

In Biograd na Moru, on 19th March 2018

The Croatian Financial Services Supervisory Agency MIRAMARSKA 24B 10 000 ZAGREB

Zagrebačka burza d.d. Ivana Lučića 2a 10 000 Zagreb

The Croatian News Agency - HINA Marulićev trg 16 10 000 Zagreb COMPANY WEBSITE

ISIN: HRILRARA 0009

SECURITY: ILRA-R-A

OUOTATION: Službeno tržište Zagrebačke burze d.d. / Official Market of the Zagreb Stock Exchange plc./

Subject: Notification of held meeting of the Supervisory Board of the company Ilirija d.d. - 19th March 2018

According to the provisions of the Capital Market Act and the Zagreb Stock Exchange Rules, Ilirija d.d. (hereinafter referred to as: Company) notified that the meeting of the Supervisory Board of the Company was held on 19th March 2018.

At the meeting, the Supervisory Board adopted the Annual report by the Management Board on the operations and position of the Company for the year 2017, the Management Board's Report on acquisition of treasury shares. Audit report of the Company's operations for the year 2017 and the Report by the Supervisory Board on performed supervision of managing the operations in the year 2017.

At the meeting held, the Supervisory Board also determined the fundamental annual financial statements of the Company for the year 2017 (Report on financial operations, financial position and Cash Flow), draft decision on the use of profit and distribution of dividend, draft decision on appointment of auditor of the company for the year 2018 and the proposal for the call with the agenda for convocation of the General Meeting of the Company.

The Supervisory Board suggested that the profit generated in the fiscal year 2017 after taxation in the amount of HRK 27,755,384.38 should be allocated in the way as follows:

• HRK $22.493.179.00$ to retained profit:
• HRK 3,000,000.00 to statutory reserves;
• HRK 2,262,204.48 for profit distribution;

Proposed is the distribution of the dividend from the residual retained profit for the year 2011 and a part of profit from the year 2017 totaling to HRK 7,240,464.00. The dividend per one share amounts to HRK 3.00 (three).

The draft decisions shall be presented to the General Meeting of the Company for adoption.

Sincerely yours,