Laško Group strategy 2019

Laško, October 2014

Our vision is to become leading regional

producer of beer products and soft drinks

Our vision

By 2025 our brands will bring us among top three leading beer

producers in South East Europe.

We will stand for innovation in beer and soft drinks products and

excellence in operations.

LaškoGroup

Leader in brewery

Recognized soft drinks producer

Supply chain excellence

Our vision is guiding us on the way to reach

strategic goals

„One plus one is more than two“: Operational excellence, streamlined corporate culture and organization.

“Follow the Value”: We are focusing strategy on the critical factors that drive sustainable and profitable growth for our shareholders.

Our 2019 goals

Winning the “Hearts and Minds” of employees: We have developed a passionate vision of the future and an ambitious strategic goals.

Path to reaching strategic goals

“We are leading - translating vision into reality“: leading regional producer of beer products and soft drinks.

175,5* mio EUR of revenues

52,1 mio EUR EBITDA

Sustainable debt to EBITDA ratio

In 2014 Laško Group (Pivovarna Laško and Pivovarna Union) revenue was 160,3 mio

EUR, EBITDA 33,3 mio EUR* Revenues form sales of products and services

Laško Group 2019 strategic goals are

supported by holistic business strategy

Key questions and answers of Laško Group 2019 strategy

Change of market dynamics towards discount retailers and private labels

Consolidation of retailers and beer producers on foreign markets

High indebtedness

Opportunity to optimize supply chain and business processes

Laško Group can best compete on it‘s core markets

- Defend market position in Slovenia

- Grow on foreign markets (outperform market growth)

Laško Group must follow main strategic directions:

- Stabilize and Restructure

o Operational restructuring

o Legal merge of Pivovarna Laško and Pivovarna Union

o Deleveraging

- Focus and Improve

o Focus on the market, fill the go-to market gaps in Slovenia and foreign markets

12 strategic projects

What are Laško Group current performance and challenges?

Where should Laško Group

compete?

How can Laško Group win?

Which actions should Laško

Group take to win?

Tomorrow, Laško Group will be unified and in

brewing focused company

Sale of stake in dependent companies Delo and Radenska will continue.(1)

Recapitalization process will continue (recapitalization of minimum 75 mio EUR).

Pivovarna Laško and Pivovarna Union will legaly merge into an unified company (planned

for 1.1.2016).

(1) Defined in the Restructuring agreement and Standstill, which was signed by Laško

Group with creditor banks in the end of April 2014.

Laško Group scope today (2014) and tomorrow (2019)

Brewing, Soft Drinks,

Water

Brewing, Soft Drinks,

Water

Laško Group

Our brands – Our treasure

In Laško Group we will focus in developing and investing in our own brands, as well as in

strengthening their market positions.

We will strengthen our presence in foreign markets, with an emphasis on Bosnia and

Herzegovina, Croatia, Italy, Kosovo and Serbia, next to selectively entering new markets.

We will keep our market position as the leading brewer in Slovenia.

We will invest in technology and energy

efficiency

A significant portion of cash flows will be dedicated to new investments, increasing

technology and energy efficiency, improving logistics and sustainable business.

Cumulative investments across next 5 years (until 2019), will surpass the depreciation

level.