Podravka d.d. — Earnings Release 2017

Apr 25, 2018

Koprivnica, 25th April 2018

- THE ZAGREB STOCK EXCHANGE

- CROATIAN FINANCIAL SERVICES

SUPERVISORY AGENCY

• - CROATIAN NEWS AGENCY
• - COMPANY WEB SITE

Re: Sessions of the Management Board and Supervisory Board of PODRAVKA Inc. held – Notice

Pursuant to the Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (Market Abuse Regulation), the Capital Market Law and the Stock Exchange Rules, we hereby notify that the sessions of the Management Board and Supervisory Board of PODRAVKA Inc. were held on 25 th April 2018 - and audited Financial Statements of PODRAVKA Group (consolidated) and PODRAVKA Inc. (non-consolidated) for 2017 and the Proposal of decision on the profit allocation of PODRAVKA Inc. for the business year 2017 were established that is enclosed to this Notice.

Also, Financial Statements of PODRAVKA Group (consolidated) and PODRAVKA Inc. (nonconsolidated) for the period 1.01.-31.03.2018 were established.

The mentioned Financial Statements will be published at the Zagreb Stock Exchange, HANFA, HINA and the Company web site.

PODRAVKA Inc.

No: NO-159-3-2018. Koprivnica, 25th April 2018

In accordance with Articles 263 par 3 and 280 par 3 of the Company Law (Official Gazette No 152/11 – clear version, 111/12, 68/13 and 110/15) and Article 4 of the Rules of Procedure of the Company Supervisory Board, the Supervisory Board of PODRAVKA Inc. on its 159th session held on 25th April 2018, adopted the following

DECISION PROPOSAL

on profit distribution of PODRAVKA Inc. for the business year 2017

I

It is determined that net profit of PODRAVKA Inc., M.B. 03454088, PIN 18928523252 (hereinafter: the Company) for the business year 2017 stated in the audited Annual Financial Statements of the Company, amounts HRK 86,437,219.04.

II

The net profit of the Company for year 2017 shall be allocated as follows:

• legal reserves in the amount of HRK 4,321,860.95.

III

It is approved that dividend to shareholders of the Company, owners of ordinary shares, shall be paid out in the gross amount of HRK 7.00 (seven kunas) per share.

Dividend shall be paid out to all shareholders that are registered as shareholders at the Central Depository & Clearing Company Inc. on July 13th 2018 (record date).

Date on which securities of the Company will be traded without dividend payment right is July 12th 2018 (ex date).

Dividend payment claim will be due on August 10th 2018 (payment date).

IV

After the net profit of the Company was being allocated in accordance with item II and III of this Decision Proposal, the remaining part of net profit shall be carried to other reserves.

The amount of dividend accounted for the Company's treasury shares shall be retained in undistributed profit.

V

This Decision Proposal will be submitted to the General Assembly of the Company.

President of the Supervisory Board:

Dubravko Štimac, v.r.