Report jan mar 2015 22 5 2015 by David Bezgovšek

Laško Group and Pivovarna Laško

Report JANUARY - MARCH 2015

Laško, 22 May 2015

CONTENTS 1

INTRODUCTION

1.1 Address by the Chairman of the Management Board

BUSINESS REPORT

2.1 Composition of the Laško Group

2.2 Sales

2.3 Investments

2.4 The financial position of the Laško Group

2.5 Financial risks

2.6 Events during the reporting period and subsequent events

FINANCIAL REPORT

3.1 Consolidated income statement

3.2 Notes to the consolidated financial statements

3.3 Notes to the separate financial statements

Appendices: Appendix 1 – Separate income statement Appendix 2 – Separate statement of financial position Appendix 3 – Separate cash flow statement

Laško Group and Pivovarna Laško

1 INTRODUCTION 1.1 Address by the Chairman of the Management Board Proudly into the 190th year of beer-making at Laško The joint process of the capital increase of Pivovarna Laško and the sale of 4,471,054 shares in Pivovarna Laško, representing the 51.11% stake held by the Sales consortium in Pivovarna Laško, continued in the first quarter. In late March, we received several binding bids provided by both financial funds and strategic investors. The significant interest of several potential investors represents recognition of both breweries and reaffirms the beer-making tradition of the region. The sale of Delo continues. In the Laško Group, 2015 began with major business events which allow us to optimistically look forward to the further strategic development of our core activity. The transaction with Kofola, the Czech Republic, closed in March, resulting in the company becoming the majority owner of Radenska. The disposal of Radenska was also one of milestones referred to in the Standstill and Restructuring Agreement, which the Laško Group concluded with eighteen creditor banks in early 2014. Despite the deteriorated economic conditions on both the domestic and export markets, where the economic crisis has significantly impacted consumption especially at home, we believe the Laško Group performed well in the first quarter of 2015. In the first quarter, the Laško Group sold 2.4% more beverages than planned, while Pivovarna Laško exceeded planned sales of beverages by 9.5%. The Laško Group brands continue to strengthen their market potions on the most important export markets, where we expect to strengthen our marketing presence in 2015. All this is a source of optimism and ambition. In the year when Pivovarna Laško celebrates its 190th anniversary, the first quarter has already been one of the most significant in the long history of beer-making at Laško and in Pivovarna Laško. mag. Dušan Zorko,

Chairman of the Management Board of Pivovarna Laško Laško, 15 May 2015

Laško Group and Pivovarna Laško

2 BUSINESS REPORT 2.1 Composition of the Laško Group In addition to the parent company:  PIVOVARNA LAŠKO, d. d., the Laško Group is comprised of the following subsidiaries:  PIVOVARNA UNION, d. d., Ljubljana  JADRANSKA PIVOVARA – Split, d. d.  VITAL Mestinje, d. o. o., and  *RADENSKA, d. d., Radenci.

*As Pivovarna Laško disposed of its subsidiary Radenska in March 2015, Radenska is no longer part of the Laško Group as at 31 March 2015. In addition to beverage producers, the Group also comprises the following companies:  DELO, časopisno in založniško podjetje, d. d., Ljubljana, and its subsidiary Izberi, d. o. o., Ljubljana,  LAŠKO GRUPA, d. o. o., Sarajevo  FIRMA DEL, d. o. o., Laško  LAŠKO GRUPA, d. o. o., Zagreb and  LAŠKO GRUPA Kosovo, Sh. p. k.

Laško Group and Pivovarna Laško

Organisation chart of the Laško Group as at 31 March 2015

LAŠKO GROUP as at 31 March 2015 Controlling company

PIVOVARNA LAŠKO, d. d. Subsidiary

Subsidiary

PIVOVARNA UNION, d. d., Ljubljana

JADRANSKA PIVOVARA - Split, d. d.

Ownership: 98.080% No of sh: 442,451

Ownership: 99.460% No of sh: 5,396,932

Subsidiary

VITAL Mestinje, d. o. o.

DELO, d. d., Ljubljana

Holding: 96.920%

Ownership: 100% No of sh: 667,464 Subsidiary of Delo:

IZBERI, d. o. o. Ljubljana Holding: 100%

Subsidiary

LAŠKO GRUPA, d. o. o., Sarajevo

FIRMA DEL, d. o. o., Laško

LAŠKO GRUPA, d. o. o., Zagreb

LAŠKO GRUPA Kosovo, Sh. p. k.

Holding: 84.61 %

Holding: 100 %

Pivovarna Laško Holding in Laško Grupa Sarajevo I69.22 %

Pivovarna Union Holding in Laško Grupa Sarajevo I15.39 %

Laško Group and Pivovarna Laško

2.2 Sales 1. Laško Group Sales Sales in the first quarter of 2015 were good both on the Slovenian and on foreign markets. Despite positive economic trends, the economic situation in the region has still not improved in 2015. A drop in purchasing power is reflected in greater inclination to saving and changes in purchasing habits, meaning customers are ever more cautious and prices are impacting purchasing decisions more and more. Changes in the consumption structure continue and reveal a growth in the discount supermarket segment and customer inclination towards supermarket brands. Payment indiscipline remains a serious issue; retailers are reducing the number of different products offered and are above all maintaining lower inventory levels, while more and more products are sold in various promotions. The Laško Group sales data includes sales of Pivovarna Laško, Pivovarna Union, Vital Mestinje and Radenska, despite the fact that Radenska was sold in March 2015. Since the 2015 plan envisaged the sale of Radenska until the end of summer 2015, the 2015 Business Plan includes the plan for Radenska for the entire first half of 2015. Birra Peja is no longer part of the Laško Group as it was sold in July 2014. Despite the fact that it was part of the Laško Group for the entire first three months of last year, the sales of Birra Peja are not included in the quantitative sales over the first three months of last year, since the data is not comparable to the sales data for 2015. In the first three months of 2015, the Laško Group (Pivovarna Laško, Pivovarna Union, Radenska and Vital) sold 656,049 hectolitres of all beverages, which is 2.4% above the plan. Quantitative sales of the Laško Group

I.-III./2015

Index 2015/2014

Index 2015/dyn.plan

Index 2015/an.plan

Beer Water Non-alcoholic beverages

377,687 187,609 90,753

102.0 92.2 88.4

106.5 94.7 103.4

18.3 30.9 24.8

TOTAL

656,049

97.0

102.4

21.6

(in hl)

The table shows the consolidated quantities of beer, which consider the difference between the keg sales of both breweries and the bottle sales filled by Laško Grupa Croatia from the same kegs. Sales of beer are up 2% compared to the same period in 2014 and are 6.5% above the plan. The sales of soft drinks decreased by 11.6% compared to the same period in 2014 and is 3.4% above the plan. The sales of water (mineral water, spring water and

Laško Group and Pivovarna Laško

flavoured waters) decreased by 7.8% compared to the same period in 2014 and are 5.3% below the plan.

Marketing and Development BEER Laško In terms of marketing, the first quarter was marked by the implementation of the plans, with emphasis on the preparation of brand communication campaigns for 2015. The aim of the main campaign was to mark the 190th anniversary of Pivovarna Laško and our main Laško brand. Our 190th anniversary was also marked on the product level, as we launched the first in the range of retro Laško cans in March. At the communications level, every month of the year we intend to run thematic campaigns advertising the tradition and values we believe in. The first quarter marked the close of the "Ostani ponosen" ("Stay Proud") campaign, which represents Laško's overall image campaign in 2015. We drafted detailed ATL and BTL activities, continued upgrading our image campaign and drafting BTL activity contents. We continuously supported the monthly sales activities at the level of individual retailers for all brands (drafting of advertising, offers and points of sale equipment). In terms of development, Export Pils 4.5% cans were offered to points of sales as our response to the greater and diversified consumption of low-cost beers. We concluded the development process of the new Pear Melissa flavour in the Laško Malt range, which will be launched to the market in April, and we will also soon conclude development of the cherry & chestnut and buckwheat flavours of the Laško Special range. In the first quarter we intensively promoted the Laško Special line in the field both in the retail and HORECA segments.

Union After the successful celebrations of our 150th anniversary last year, we continued the already devised communications strategy in 2015. This year, we are aiming for a step further - Pivovarna Union brings people together. Our communications campaign, which will be launched in the media in late April, will continue and upgrade the brand's underlying communication elements. We aim to emphasize the fact that although the target groups of Pivovarna Union are very diverse, they have a lot in common. We bring together former classmates, enthusiastic spectators of sports both at home and in the bar, as well as co-workers. We bring together everyone who shares the values which the Pivovarna Union brand has stood for over 150 years. To this end we launched a new corporate TV and radio advertisement, as well as a series of print and citylight advertisements. Undoubtedly, Union Radler acted as the herald of spring this year on the shelves. After the facelift of the non-alcoholic flavours Citrus - Elderflower and Apricot that occurred last year, we added refreshing alcoholic flavours to the joyful and youthful range (Grapefruit, Lemon and Red orange). Their modern design underlines the freshness,

Laško Group and Pivovarna Laško

lightness and youth of the brand. We have also devised a communications strategy with a strong PR component. As of April, a large prize competition will be organised at all points of sale.

NON-ALCOHOLIC BEVERAGES Sola We began 2015 developing a new BLUEBERRY flavour fruit drink. This new product, which represents an additional product in the range of Sola fruit juice drinks called Sola Hey, will receive a slight facelift and be launched on the market in late April or early May. Numerous tasting sessions will be organised in major shopping centres in order to promote the product. In March we launched a new campaign for the SOLA brand entitled "Aktivejšn Generejšn" (a more active generation), which represents our attempt to approach our consumers in a different, more innovative manner. The central idea is that we can be active in any moment and that any situation can represent an opportunity to exercise. To this end we engaged our brand ambassadors Filip and Blaž (acrobats), who will stage 15 performances around Slovenia for the Sola brand with the aim of rising the awareness of our consumers for activity. Cross-media support will be provided - TV advertisement, BB campaign, FB and print. In cooperation with the Hokey Association of Slovenia, we devised the "Zadeni kot ris" prize competition in Tuš shopping centres, which will be launched in late April and support the Isošport brand.

WATER Oda With respect to Oda, we continue to build nature-related contents, targeting mainly children and young people, while workshops will be organised at "Gremo v hribe" (Lets go to the mountains) events. The first quarter was also marked by designing the annual sales promotion activities and making the relevant changes to the packaging for a two-month competition which begins in May.

Zala Together with an external research agency we conducted a study on the perception and strength of the Zala brand and drafted a plan for repositioning the Zala spring water in 2016. On this basis, in the coming months we will draft communication strategies of the brand and draft creative stories for 2016. We will also support sales and select customers with seasonal sales projects.

Nula In January we launched the marketing campaign for the new NULA raspberry beverage. The campaign was very direct and dispersed among several media channels. The campaign was highly visible and consumer response to the product is very positive. In parallel with the campaign the development team finalised the new Nula

Laško Group and Pivovarna Laško

grapefruit flavour, which was launched to the market in early April. The first responses are very promising.

Za We do not plan any major marketing activities for ZA drinks this year as we intend to focus on supporting sales activities. Together with a sponsoree, we have drafted a project for the summer which will bring together the internet and field promotions.

DEVELOPMENT Pivovarna Laško In the first quarter of 2015 we continued developing the new range of speciality beers under the LAŠKO SPECIAL label. Two flavours, namely SourCherry02 and Buckwheat03, joined the existing range of three products: Golding, Striptis and Lager Citra01. Development of the range continues. In the segment of our own brand beers we launched the Laško Dark 5.9 vol. % beer in a 0.5 litre can and actively pursued activities related to the Retro image of the core Zlatorog brand. In the segment of Malt beverages we developed a new product - Laško Malt Pear Melissa, which is bottled in a non-returnable 0.33 litre bottle and 0.5 litre can (prize competition). This product will replace Laško Malt apple flavour on the shelves. We will very soon launch a special summer edition of the Oda water (0.5 and 1.5 litre plastic bottles with promotional packaging and prize competition). We held a series of lectures entitled Plastenkina zgodba (the Bottle's story). As part of development we drafted data for the sustainability report and provided and collected data relating to the new Decree on the labelling of allergens.

Pivovarna Union In the first three months of 2015 we developed new flavours in the water, herbal tea, fruit drinks, Malt drinks and drinks with added alcohol segments. We developed a ginger beer for a supermarket brand. We organised development samplings, trial bottling and stability tests. With respect to these activities we have already launched a new flavour of water without any added sugar or sweeteners - Nula grapefruit, while we began bottling Nula raspberry in 1.5 litre bottles. We redesigned the range of Radlers and organised a prize competition linked to the new design. For the pub, we developed a new "beer-maker's selection" beer in kegs "Peti kralj" (fifth king). We conducted several tests of materials relating to the new requirements of the renovated S4 bottling line: trials of labels, glues, and tests of crown tops, and drafted the relevant documentation. We harmonised the relevant quality standards relating to packaging materials.

Laško Group and Pivovarna Laško

2. Laško Group - Slovenia Sales Our sales and marketing activities are focused on retaining our market shares in individual beverage categories on the domestic market, improving our brands' positions, communications and visibility at points of sale, and reaching the sales goals and profitability of our brands. In doing this we focus on actively participating in brand management activities conducted by individual customers and on the efficiency of sales and marketing activities. In our activities we focus on products and promotions that to the greatest possible degree satisfy the needs of an individual retailer's customer in each individual channel. Based on our understanding of customer behaviour and purchasing paths we defined micro-locations at various frequented zones, thus influencing consumers to make impulse purchases as part of our regular monthly activities conducted with individual retailers. We drafted standards of labelling products on both regular shelves and secondary positions with the aim of improving customer perception of our brands. We upgraded our POS material communications; the clear message now allows us to enhance our customers' awareness of our brands and encourage them to purchase our products. In our activities we focused on price promotions and added value for our customers, as well as activities focused on certain occasions, such as lifestyle, hydration, light meals, socialising. In cooperation with the Nielsen marketing and research agency, we conducted an analysis entitled Price and promotional activity management in the Beer category. The data obtained will allow us to even more optimally plan our sales and marketing activities. In the HoReCa channel we have focused on the excellence of the various parameters: excellent service, visibility at points of sale, active sales promotions and ensuring the satisfaction of our final customers, while package sales, brand activation and activation in accordance with key projects such as draught beer, specialised beer, Clubbings are conducted in parallel. Our upgraded standards of participating and enhancing sales at events are also an important factor in these activities.

Retail market shares - Slovenia On the Slovenian market of beer, the retail market structure is as follows: 91.8% alcoholic beer, 4.6% beer mixes and 3.6% non-alcoholic beer (source: Nielsen, February 2015). In terms of packaging, cans account or 79.6%, while bottles follow with 19.4%. According to Nielsen data (retail sales, January - February 2015), the growth of supermarket brands of Mercator, Spar, Tuš, Hofer and imported brands, which are conducting intensive promotions at points of sales, continues this year. The following quantitative market shares were recorded: 29.3% Pivovarna Laško, 25.5% Pivovarna Union, followed by supermarket brands (Mercator, Spar, Tuš) at 22.5%, discount retail brands (Hofer, Lidl) at 16.7%, and foreign brands (Staropramen, Gosser, Heineken, Schlossglod, Kozel, Becks, Tuborg) at 7.0%.

Laško Group and Pivovarna Laško

The retail structure of water is as follows: carbonated waters 64.6%, non-carbonated waters 23.0%, and flavoured waters 12.4%. Zala has a 14.1% and Oda a 7.7% share of the market of non-carbonated waters. Pivovarna Union has the leading position on the market of flavoured waters with a 46.7% market share (source: Nielsen, February 2015). Radenska has the leading position on the market of carbonated waters. The Sola brand dominates the iced tea market with a 44.7% market share, followed by Coca Cola, Fructal and Frupi with market shares of 13.8%, 12.5% and 3.7%, respectively. Quantitative sales of the Laško Group on the domestic market I.-III./2015

Index 2015/2014

Index 2015/dyn.plan

Index 2015/an.plan

Beer Water Non-alcoholic beverages

239,086 155,400 73,386

104.3 92.5 96.2

107.7 96.8 99.2

19.1 30.7 25.9

TOTAL

467,872

98.8

102.5

22.9

(in hl)

Pivovarna Laško The sales of Pivovarna Laško on the domestic market are up 4.8% compared to the first three months of last year and up 15% on the plan. Beer is the most important segment, of which we sold 4.8% more than in the same period of 2014, which is 14.7% above the plan. Pivovarna Union The sales of Pivovarna Union on the domestic market are up 1.7% compared to the first three months of last year and up 5.2% on the plan. Beer sales were 3.8% above the same period of 2014, which is 1.8% above the plan. Vital Mestinje The sales of Vital on the domestic market are down 7.1% compared to the first three months of last year and down 12.8% on the plan.

3. Laško Group – foreign markets Sales of Laško Group products - foreign markets The sales of the Laško Group on foreign markets in the first three months of the year were down 7.3% on the same period last year and 2.3% above the plan. This is a sound result since our plan of sales on foreign markets for 2015 is again rather ambitious. The Group sold most beer on foreign markets - 1.8% less than last year and 4.6% more than planned. We sold 8.9% less water than last year and 14.3% less than planned. Due to the transfer of the production of Multi Sola under licence that took place in February of this year, sales of non-alcoholic beverages in Kosovo recorded a drop of 34.2% compared to last year and are up 26.2% on the plan.

Laško Group and Pivovarna Laško

Quantitative sales of the Laško Group on the markets outside Slovenia

I.-III./2015

Index 2015/2014

Index 2015/dyn.plan

Index 2015/an.plan

Beer Water Non-alcoholic beverages

138,601 32,209 17,367

98.2 91.1 65.8

104.6 85.7 126.2

17.1 32.2 21.1

TOTAL

188,177

92.7

102.3

19.0

(in hl)

Laško Group companies recorded the following structures of sales on markets outside Slovenia: Pivovarna Laško 78,433 hectolitres, Pivovarna Union 76,732 hectolitres, Radenska 32,287 hectolitres and Vital 725 hectolitres. Although the Laško Group disposed of its subsidiary Birra Peja Sh. a. in 2014, this company continues to produce beer under the Laško Zlatorog licence for the markets of Kosovo, Macedonia and Montenegro with sales of total 2,345 hectolitres in the first quarter of 2015 (down 34.2% compared to last year), and Sola ice tea peach flavour and Multi Sola for the markets of Kosovo and Macedonia with sales totalling 21,737 hectolitres in the first quarter of 2015 (up 121.5% compared to last year). In the first three months of 2015, Birra Peja, Sh. a., sold a total 24,082 hectolitres of beverages produced under licence (up 80.1% compared to last year). In the key market of Kosovo, the Laško Group established its own company Laško Grupa Kosovo, Sh. p. k. Peć in August 2014, aiming to accelerate the sales of the Laško Group brand products. Pivovarna Laško The sales of Pivovarna Laško on foreign markets increased by 1.3% compared to the same period last year, exceeding the plan by 1.8%. Beer is the most important sales segment, while malt drinks have a smaller share. Sales on the key markets of Croatia, Bosnia and Herzegovina, Kosovo and on the market of Macedonia are up both compared to last year and compared to the plan. On the markets of Austria and other markets, Pivovarna Laško exceeded last year's results, but has not yet achieved the plan. On the key markets of Italy and on the market of Hungary, sales are down compared to last year, but up on the plan. Pivovarna Union The sales of Pivovarna Union on foreign markets decreased by 11.4% compared to the same period last year, exceeding the plan by 13.4%. The sales of beer decreased by 2.2% compared to last year, up 10.5% on the planned sales; the sales of non-alcoholic beverages are down 34.0% compared to the three months of last year and 28.6% above the plan. Sales on the key market of Italy and other markets are up compared to last year and the plan, while although sales on the key market of Bosnia and Herzegovina and the market of Austria are up compared to last year, we are still behind the plan. Sales on the key markets of Croatia, Kosovo and the market of Macedonia are down on

Laško Group and Pivovarna Laško

last year but up on the plan, while the sales on the Hungarian market lags behind last year, as well as the plan. Vital Mestinje On foreign markets, Vital sells small amounts of syrups, which account for a 41.1% decline in sales compared to the same period last year, down 11.0% on the plan.

2.3 Investments In the first quarter we began implementing key investment projects relating to the renovation of the most important bottling lines. The investment projects begun represent the closing phase in the final renovation of production equipment which allow Group companies to generate the most added value, and at the same time allow flexibility in packaging, which allows us to maintain a competitive market position.

Investments in Pivovarna Laško Between January and March 2015, Pivovarna Laško spent EUR 462,208 on investments and purchases of property, plant and equipment. In the first quarter of 2015 we continued the strategic investment relating to the replacement of the wet part of the ST2 bottling line, which began in 2014. The project will be completed by May 2015, when the dry part of the line will also allow the complete supply of the market with our products with an output capacity of 60,000 bottles (0.5 litre and 0.33 litre), in 20 x 0.5, 24 x 0.33 and 10 x 0.5 litre cases. At the same time, in addition to the ST2 project, we began preparatory works relating to the investment in degassed water, which is needed for the new ST2 bottling line. This investment will also be concluded by the time the new bottling line comes on-line. In this period we acquired the technical and project documentation for projects relating to the cooling of yeast, the ammoniac compressor and the renovation of the vertical transporter in the filling area, which will be implemented in line with the approved investment plan.

Investments in Pivovarna Union Between January and March 2015, Pivovarna Union spent EUR 2.2 million on investments and purchases of property, plant and equipment. Renovation of the wet part of the S4 bottling line concluded in mid-February 2015. We replaced the bottling and washing machine, as well as the labelling device. In addition to replacing the machines, we also replaced the ventilation system and replaced the spent flooring. Noise protection will be installed this autumn. The S4 line has become the company's most important line, as it is used to bottle beer into all types of returnable packaging (five different bottles and five different cases). We concluded the agreement for the replacement of two old steam boilers with two new hot water supply systems. This investment is important for the unhindered

Laško Group and Pivovarna Laško

provision of heat needed for the production and heating. We have already obtained the building permit and have already begun preparatory construction and installation works. The timeline of the project for replacing the boilers has been extended since we need to continuously ensure the supply of heat during the project. The first boiler will be supplied and installed in September, during which time one of the existing boilers will still be on-line. The second boiler is expected to be supplied and installed in February 2016, when the first boiler will also be operational. We are currently drafting the relevant solutions for the renovation of the processing, regulation and IT system of the warehouse, and have obtained bids from two potential suppliers. We expect to finalise the proposals, solutions and bids in mid-2015.

Investments in Radenska In the first quarter of 2015, Radenska did not begin implementing any of the investments planned for 2015. However, we did spend EUR 37,252 on purchasing various small items of equipment and purchased EUR 35,580 of returnable packaging, which represents 6.5% of the planned spending on property, plant and equipment and returnable packaging. In light of the ownership change in mid-March 2015, the investment plans for 2015 will have to be adapted to the strategy of Radenska's new owners.

Laško Group and Pivovarna Laško

2.4 The financial position of the Laško Group Financing in the Laško Group The beer-making industry is subject to seasonality, implying significant liquidity fluctuations and deteriorated liquidity off-season, which is generally between January and late May. Especially the parent company faced liquidity issues in the first three months of the financial year. During these times, due to lower quantities sold and the poor payment discipline of our major customers, we usually face difficulties managing our current liquidity. On average, we receive payment for over 70% of our quantities sold within 75 days, meaning that we only receive payment for quantities sold in the summer by early autumn, thus improving the liquidity of the companies. In the first quarter of the year, the Laško Group reduced its exposure to banks in terms of loan principal by EUR 22.9 million (net): of that, EUR 25.1 million relates to Pivovarna Laško, while Pivovarna Laško increased its exposure to banks by EUR 2.7 million, and Delo decreased its exposure by EUR 0.5 million (net), including changes to the drawing of revolving loans approved. Upon the closing of the sale of Radenska on 17 March 2015, Pivovarna Laško and Pivovarna Union also settled all liabilities due to Radenska relating to intercompany loans. In the first quarter of the year, the Laško Group recorded EUR 2.8 million of financial expenses on interest on its financial liabilities due to banks and recorded an EBITDA of EUR 7.2 million. Most interest was recorded by Pivovarna Laško, namely EUR 2.3 million. This resulted in an EBITDA of EUR 2.4 million, meaning that the EBITDA generated in the first quarter of the year is sufficient to cover all financial expenses from financial liabilities due to banks. As of the date on which the sales process for Radenska closed, Radenska is no longer part of the Laško Group. The transaction was closed in financial terms on 17 March 2015 and thus the Laško Group fulfilled part of the second milestone stemming from the Restructuring and Standstill Agreement, which was concluded with all crediting banks on 30 April 2014. Pivovarna Laško spent part of the sales proceeds on repayments to banks in accordance with the repayment schedule outlined in the Restructuring and Standstill Agreement. On 31 March 2015, Pivovarna Laško, again in line with the repayment schedule outlined in the Restructuring and Standstill Agreement, made a further loan repayment amounting to EUR 3.5 million, this time from cash flow generated from its core activity. The next significant step to realising the third milestone outlined in the Restructuring and Standstill Agreement was signing the agreement on the sale of a material stake in Pivovarna Laško, which occurred on 13 April 2015. For more information, see Chapter 2.6 Events during the reporting period and subsequent events.

Sale of the investments of the Laško Group In 2015, the Laško Group continued activities aimed at the disinvestment of financial investments as well as of other assets the Group does not need for its operations.

Laško Group and Pivovarna Laško

Pursuant to the operational and financial restructuring of the Laško Group, procedures for the sale of the stake in Radenska were successfully closed. The sales agreement was concluded subject to several suspensive conditions in December 2014, while the financial closing of the transaction was on 17 March 2015. Through this, the Laško Group realised the second milestone of the Restructuring and Standstill Agreement concluded between the Laško Group companies (Pivovarna Laško, Pivovarna Union and Radenska) with all the crediting banks on 30 April 2014. The disposals process was managed by the M&A advisers, UniCredit Banka Slovenija.

Sale of Delo The Laško Group continues the sale of its entire stake in Delo. In light of the successful closing of the sale of Večer the sales process for Delo will also continue. In 2014 the Company signed an exclusivity agreement with the potential investor who began the due diligence process of the company's operations. The exclusivity period expired in February 2015, and the potential buyer was invited to improve its non-binding bid and the SPA conditions. Some other investors, who have also singed an NDA and received the Investment Memorandum, are interested in purchasing the company. The due diligence reviews of the company are underway. Upon the closing of the sale of Radenska, Pivovarna Laško increased its stake in Delo to 100%, as it purchased Radenska's 19.17% share on 17 March 2015.

The sale of Radenska, Radenci This transaction closed on 17 March 2015. For more information, see Chapter 2.6 Events during the reporting period and subsequent events.

The sale of Jadranska pivovara – Split After the sale of the company was unsuccessful, most production equipment was sold and the proceeds received in the first half of 2014. Procedures relating to the disposal of the remaining production equipment and transforming the company from a public limited company into a private limited company are still pending.

Laško Group and Pivovarna Laško

2.5 Financial risks All the risk management activities in the Laško Group focus on the unpredictability and illiquidity of financial markets, that have increased under the conditions of the financial crisis, and attempt to minimize the potential negative effects on the financial stability and performance of the Group. The finance department predominantly deals with financial risks while the sales department is also involved in credit risk management. Long-term stability of the Group’s operations dictates concurrent and detailed monitoring and assessment of financial risks. In 2015, the Company continues to follow the objective of achieving stable operations and reducing exposure to individual risks to a sustainable level. The companies are unable to fully hedge all risks, but can reduce or avoid risks from materialising with timely measures. To this end, the companies continuously recognise and assess risks, taking the relevant measured depending on the target risk exposure. Risk management measures have been built into our day-to-day operations. All recognised risks have been recorded in the risks register, which is amended as needed. Particularly significant among financial risks faced by the Group are liquidity risk and risk related to the decrease in investment fair value. Long-term stability of the Group’s operations dictates concurrent and detailed monitoring and assessment of financial risks. In 2015, the Company continues to follow the objective of achieving stable operations and reducing exposure to individual risks to a sustainable level. The companies are unable to fully hedge all risks, but can reduce or avoid risks from materialising with timely measures. To this end, the companies continuously recognise and assess risks, taking the relevant measured depending on the target risk exposure. Risk management measures have been built into our day-to-day operations. All recognised risks have been recorded in the risks register, which is amended as needed. Particularly significant among financial risks faced by the Group as well as each individual company are liquidity risk, risk related to the decrease in fair value of property, plant and equipment and investment real estate, credit risk and to some extent also interest rate risk.

Liquidity risk The Group, and especially Pivovarna Laško, discloses an excess of current liabilities over current assets, signifying the existence of a significant liquidity risk. Although the Standstill and Restructuring Agreement until 31 December 2016, which was concluded on 30 April 2014, has significantly reduced the insolvency risk and improved the structure of financing sources, the Group must pay significant attention to its liquidity risk. In 2014, the Group sold its investments in Mercator and Birra Peja, and partially repaid its crediting banks through the proceeds. On 17 March 2015, the process of selling Radenska was also closed, while the proceeds were used to partially repay the crediting banks of Pivovarna Laško and all liabilities relating to intercompany loans provided by Radenska were settled. To avoid liquidity issues, Group companies manage their liquidity risk, design and implement a policy of regular liquidity management including the planning of cash outflows and sufficient inflows both on an annual and a monthly level. Laško Group and Pivovarna Laško

Monitoring of the fundamental financing and liquidity ratios pursuant to Article 14 of the Financial Operations, Insolvency Proceedings and Compulsory Dissolution Act, which prescribes criteria under which an entity is deemed insolvent, is particularly important and necessary in ensuring effective liquidity risk management. Regular monitoring of an entity's liquidity position is of particular importance as it ensures timely response and helps to avoid unfavourable consequences of an emerging liquidity crisis. We believe that the liquidity situation has improved due to the signing of the Restructuring and Standstill Agreement and the successful disinvestment; however, in view of the difficult situation on financial markets and the entire economic environment, the Group's exposure to liquidity risk is still very high and requires special attention.

The risk of changes in fair value The risk of changes in fair value of financial investments, property, plant and equipment and investment property is undoubtedly also an important financial risk. The risk can be observed in the segment of financial expenses where financial expenses from the impairment and write-off are disclosed. The sale of the investment in Mercator in late June last year has resulted in a significant reduction in the risk of changes to fair values due to the impairment of investments. However, the risk of a fall in the other financial investments and real estate held by the Group still remains.

Credit risks include all those risks resulting in the decline of the company’s economic benefits due to insolvency of the company’s business partners (customers) and failure to meet their contractual obligations. To this end, the receivables from our business partners, wholesalers and retailers, are regularly monitored. In addition, we actively manage receivables, rapidly implement collection procedures by reminding customers, collecting receivables via telephone or in the field, as well as debt recovery through an external agent and through the courts. Part of our receivables are insured with the SID insurance company, while others are secured with guarantees, mortgages and bills of exchange. Business with less credit-worthy customers is made on the basis of advance payments and immediate payments so that the risk of non-payment for the purchased goods is avoided to some extent. Receivables due from our major wholesalers on the local market are only partly collateralised and subsequently, there is a large credit risk exposure to this particular segment. It is believed that there is a considerable risk of the spreading of the latepayment culture in 2014 also into 2015, which is the result of the financial crisis in all the segments of the economy. The management believes that the credit risk is increasing due to fierce economic conditions.

Laško Group and Pivovarna Laško

Interest rate risk is the risk of a possible change in the reference interest rate on the financial market, mainly due to Euro borrowings linked to a variable interest rate (EURIBOR). Interest rate hedging of long-term debt at variable interest rate is doubtlessly sensible; however, since our loans were restructured until 31 December 2016 on 30 April 2014, we will monitor events on the financial markets and act when appropriate. Even though the EURIBOR reference interest rate showed a downward trend, which continues also in 2015, we estimate the Company's exposure to interest rate risks as high, but manageable.

Laško Group and Pivovarna Laško

2.6 Events during the reporting period and subsequent events EVENTS DURING THE REPORTING PERIOD 1. Joint process for the capital injection into Pivovarna Laško and the sale of the 51.11% stake in Pivovarna Laško held by the Sales consortium In accordance with the Standstill and Restructuring Agreement which the Laško Group concluded on 30 April 2014, as well as in accordance with the Laško Group Strategy for the 2015 - 2019 period, together with its adviser UniCredit, the Management Board began searching for an investor to inject capital into the company in July 2014, when it issued the Teaser. In October 2014, the interested bidders who signed the Non-Disclosure Agreement (NDA) received the Information Memorandum, which summarised all data on the operations of the Laško Group. They were invited to submit their bids for providing a capital increase in the amount of EUR 75 million, whereby Pivovarna Laško informed the public that it would select the best bid, with the price per share being deemed the main criterion for selecting the best bid. Both strategic and financial investors expressed their interest in participating in the capital increase. Based on the non-binding bids received in the proceedings for the capital increase of Pivovarna Laško, on 21 November 2014 Pivovarna Laško confirmed the short-list of potential investors which were invited to continue the process of the capital increase of Pivovarna Laško. The Supervisory Board consented to the Management Board's proposal for the selection of the potential investors invited to inject capital into Pivovarna Laško, d. d., and consented to the proceedings continuing with the potential investors on the short-list. In November 2014, Družba za upravljanje terjatev bank, d. d., (DUTB) as coordinator of the Sales consortium, informed Pivovarna Laško that the major shareholders of Pivovarna Laško had concluded an Agreement on the joint sale of Pivovarna Laško, the sole purpose of which was to ensure their joint participation in the process of the sale of shares in Pivovarna Laško. On 3 February 2015, after obtaining the Supervisory Board's consent, the Management Board of Pivovarna Laško concluded the Non-Disclosure Agreement and Cooperation Agreement with the members of the Sale consortium. With this agreement, Pivovarna Laško and the members of the Sales consortium regulated the manner of mutual cooperation in the joint process of ensuring the capital increase of Pivovarna Laško and the sale of the shares held by Sales consortium members in Pivovarna Laško. The Sales Kapitalska družba za družba za

consortium is comprised of: Družba za upravljanje terjatev bank, d. d., družba pokojninskega in invalidskega zavarovanja, d. d., Alpen invest, upravljanje investicijskih skladov, d. o. o., Abanka Vipa, d. d., KD Skladi, upravljanje, d. o. o., Nova Kreditna banka Maribor, d. d., Zavarovalnica

Laško Group and Pivovarna Laško

Triglav, d. d., Sklad obrtnikov in podjetnikov and Banka Koper, d. d. The Consortium holds a 51.11% stake in Pivovarna Laško.

2. The sale of the shares in Radenska, Radenci The sale of the shares in Radenska began on 1 September 2013 pursuant to the Restructuring and Standstill Agreement. It was carried out in a transparent international two-phase process of public tender for the selection of bids. On 19 December 2014, Pivovarna Laško as the seller, Kofola, družba za upravljanje d.o.o., as the buyer and Kofola S.A., as the guarantor, concluded an agreement for the sale of 3,812,023 shares in Radenska or a 75.31% stake in Radenska (hereafter: “the Agreement”) subject to several suspensive conditions. On 19 January 2015, the Supervisory Board of Pivovarna Laško gave its consent to the sale of the shares in Radenska. The Supervisory Board's consent is one of the suspensive conditions for the transaction to be finalised. The sale of the 75.31% equity stake in Radenska was successfully closed on 17 March 2015. From the transaction (disposal of the investment in Radenska), Pivovarna Laško received proceeds amounting to EUR 51,805,392.57. The proceeds significantly contributed to the deleveraging of Pivovarna Laško in accordance with the Standstill and Restructuring Agreement. On 17 March 2015, Pivovarna Laško received EUR 8,154,000.00 as proceeds from the sale of 600,000 (an equity stake of 11.85%) shares in Radenska, which Pivovarna Laško had temporarily sold to DBS on 30 November 2011. On the same date (17 March 2015), Pivovarna Laško purchased from Radenska 127,928 shares in Delo, Dunajska cesta 5, Ljubljana, thus becoming the 100% owner of Delo and settling the settlement claim of Radenska. The General Meeting of shareholders of Radenska was held on 17 March 2015 as part of the conclusion of the sale of Radenska. At the General Meeting, the shareholders approved changing the company's articles of association, were briefed on the resignation of the existing members of the company's supervisory board and elected new members of the supervisory board. The sale of the stake in Radenska represents the fulfilment of one of the covenants agreed in the Restructuring and Standstill Agreement. After the closing of the sale of the stake in Radenska owned by Pivovarna Laško on 17 March 2015, all the denationalisation claims and procedures continue against Radenska, as Pivovarna Laško has not been contractually bound to acquire them. As a result, all the contingent liabilities arising from the above-mentioned denationalisation requests remain with Radenska.

3. Settlement claims of Pivovarna Union and Radenska in accordance with Article 542 of the Companies Act (ZGD-1) On 23 April 2014, Pivovarna Laško received the letters entitled "Settlement claim pursuant to paragraph 1 of Article 542 of the Companies Act", both dated 22 April 2014 and sent by Pivovarna Union and Radenska. In the letters, the aforementioned companies inform Pivovarna Laško of the unaudited amounts of their settlement Laško Group and Pivovarna Laško

claims aimed to cover the losses of both companies generated during the contractual group with Pivovarna Laško as the controlling entity. The unaudited amount of the claim of Pivovarna Union for the period from 11 April to 26 April 2012 amounted to EUR 0 (nil), while the unaudited amount of the claim of Radenska for the period from 6 February to 26 April 2012 amounted to EUR 1,044,183.99. An overview of the calculations was attached to the letters. On 23 April 2014, Pivovarna Laško replied to the letters of Pivovarna Union and Radenska, informing both companies that it has been informed of their claims. At the same time, both companies were requested to provide confirmation of the amounts by auditors. In light of the aforementioned, provisions of EUR 1,044,183.99 have been disclosed in the financial statements of Pivovarna Laško for the financial year ended 31 December 2014. On 13 February 2015, Pivovarna Laško received from Radenska the letter entitled "Settlement claim pursuant to paragraph 1 of Article 542 of the ZGD-1", which was supplemented with the auditor's report dated 12 February 2015. With this letter, Radenska informed Pivovarna Laško that it received on 11 February 2015 the auditor's report on the audited interim balance sheet for the duration of the contractual group, thus fulfilling all the conditions for the recognition of the amount of the settlement claim. The audited amount of Radenska's settlement claim for the period between 6 February 2012 and 26 April 2012 amounts to EUR 1,044,183.99, as evidenced by the Independent Auditor's Report provided by Deloitte Revizija d.o.o. on 11 February 2015 relating to the audit of the net profit or loss generated in the period between 6 February 2012 and 26 April 2012. In light of the closing of the sale of Radenska, on 17 March 2015 Pivovarna Laško recognised and settled the said audited settlement claim of Radenska in full.

4. Compensatory actions against Atka-Prima / Boško Šrot In early 2011, compensatory actions were filed at the relevant courts against the defendants Atka-Prima and Boško Šrot, demanding the defendants pay damages to the plaintiffs relating to the damages incurred by the plaintiffs as a result of transactions effected in 2008 and 2009. The following actions were filed: by Pivovarna Laško on 12 January 2011 for the payment of EUR 13,336,488.76 plus costs and interest; by Pivovarna Union for the payment of EUR 51,662,307.74 plus costs and interest; by Radenska, Radenci for the payment of EUR 46,238,893.69 plus costs and interest, by Delo for the payment of EUR 8,003,311.06 plus costs and interest, and by Fructal for the payment of EUR 10,784,720.85 plus costs and interest (the latter were all filed on 15 February 2011).These proceedings are all pending. The Company partially revokes its claims corresponding to the amounts received from the bankruptcy estates of Infond Holding, d. d. – v stečaju and Center Naložbe, d. d. – v stečaju. On 14 July 2014, Pivovarna Laško received the interim judgement of the Celje District Court in the industrial dispute between Pivovarna Laško as the plaintiff and AtkaPrima, Celje and Boško Šrot as defendants for the payment of EUR 13,336,488.76 plus costs and interest. The court decided that the claim of the plaintiff for damages arising from the transactions or loan agreements concluded in 2009 by the plaintiff and

Laško Group and Pivovarna Laško

Infond Holding and the plaintiff and Center naložbe, and the sales agreement concluded in 2008 for the purchase of shares in Thermana between Infond Holding as the seller and the plaintiff Pivovarna Laško as the buyer, is justified. At the same time, the court halted the proceedings for the payment made on 24 September 2013 of EUR 89,382.56 from the bankruptcy estate of Infond Holding, d. d. – v stečaju and the payment made on 30 December 2013 of EUR 410,236.03 from the bankruptcy estate of Center naložbe, d. d. - v stečaju. The interim judgement and decision are not yet final. The defendants appealed against the resolution of the court of first instance concerning the exemption of court fees for the appeal against the judgement. With its resolution served to Pivovarna Laško on 1 April 2015, the Celje High Court decided to stay any decision on the appeal against the court fees until the Constitutional Court of the Republic of Slovenia decides the request of the Celje High Court to assess the constitutionality of paragraph 3, article 12 and paragraph 1, article 21 of the Court Fees Act (ZST-1).

SUBSEQUENT EVENTS 1. Appointment of the Supervisory Board members of Pivovarna Laško – employee representatives The Workers' Council of Pivovarna Laško appointed Ms Dragica Čepin and Ms Nataša Kočar as members of the Supervisory Board (employee representatives) for a term of office of four years, beginning on 7 April 2015. The term of office of Mr Bojan Cizelj and Ms Dragica Čepin as members of the Supervisory Board (employee representatives) expired on 6 April 2015. On 13 April 2015, Ms Dragica Čepin was appointed Deputy Chairwoman of the Supervisory Board, while Ms Nataša Kočar was appointed member of the Audit Committee.

2. Halting the enforcement at the proposal of the Bank Asset Management Company (BAMC) On 7 April 2015, in the enforcement matter (ref. no. Ig 147/2011) against Pivovarna Laško brought by the creditor Družba za upravljanje terjatev bank, d. d., Ljubljana (the Bank Asset Management Company - BAMC) for the recovery of EUR 7,349,552.25, Pivovarna Laško received the final resolution of the Celje County Court halting the proceedings at the proposal of the creditor (the BAMC). The creditor BAMC proposed the halting of the enforcement proceedings pursuant to the implementation of the Agreement for the sale and purchase of shares of Radenska, d. d., Radenci agreed by Pivovarna Laško as the seller and Kofola, družba za upravljanje, d. o. o., as the buyer on 8 January 2015 for the sale of 345,304 RARG shares (a 6.82% share of Radenska), which were seized as the subject of the enforcement filed by the BAMC. The proceeds of EUR 4,692,681.36 (EUR 13.59 per share) was paid to the BAMC on 9 April 2015, while the seized shares were transferred to Kofola on 8 April 2015. This matter actually concerns the enforcement matter in which the court issued on 22 December 2011 its decision allowing the enforcement against 345,304 pledged RARG shares for the payment of EUR 7,349,552.25 (see: Enforcement of NKBM (new creditor BAMC) against Pivovarna Laško). The enforcement related to the agreement on the Laško Group and Pivovarna Laško

pledge of book-entry securities concluded on 5 June 2009 between Nova kreditna banka Maribor (NKBM) as the creditor, Center naložbe as the debtor and Pivovarna Laško as the lienor, according to which Pivovarna Laško pledged the shares as collateral for a loan raised by Center naložbe with NKBM. The aforementioned agreement on the pledge of book-entry securities was signed by the former director Boško Šrot on behalf of Pivovarna Laško. On 16 June 2014 the court allowed the BAMC to take the place of the original creditor Nova KBM, Maribor, as the disposal of the underlying claim had resulted in the automatic transfer of the lien from the former to the current creditor.

3. Signing the sales agreement between the Sales consortium and Heineken International B.V., the Netherlands, for the sale of a 51.11% stake in Pivovarna Laško In the final phase of the joint process of ensuring the capital increase of Pivovarna Laško and the sale of the shares held by Sales consortium members in Pivovarna Laško, Pivovarna Laško received five bids, which it carefully studied and then decided how the negotiations were to continue. On 13 April 2015, members of the Sales consortium and Heineken International, B. V. concluded the share purchase agreement for the sale of a 51.11% stake in Pivovarna Laško at the price of EUR 25.56 per share, under the suspensive conditions defined in the SPA. Upon signing the share purchase agreement, the buyer Heineken International, B. V. also concluded a Cooperation agreement with Pivovarna Laško, with which the buyer undertakes to ensure the continued financial stability of Pivovarna Laško after the transaction closes, as well as a Shareholder loan agreement. Signing the sales agreement between the Sales consortium and Heineken International B. V. represents the fulfilment of a significant milestone referred to in the Standstill and Restructuring Agreement, which the Laško Group companies concluded on 30 April 2014 with all 18 creditor banks. The proceeds will be paid and the shares transferred upon the fulfilment of the suspensive conditions defined in the share purchase agreement.

4. Data on the PILH shares managed by D.S.U., d. o. o., Ljubljana After the entry into force of the Denationalisation Act (ZDen), 304 denationalisation applications were filed against the company's equity (Pivovarna Laško was then a public company); of these, 286 applications were filed by the former shareholders of Gostilničarska pivovarna, d. d., Laško, while 18 applications were related to the loan the shareholders extended to Gostilničarska pivovarna, d. d. before the Second World War. As a result, during its ownership restructuring, Pivovarna Laško made provisions of 471,284 Pivovarna Laško shares in accordance with the Act. By the time the ownership restructuring was entered into the court register, 295,423 shares had already been returned, while the remaining 175,861 shares were transferred to Slovenska razvojna družba (currently: D.S.U., d. o. o., Ljubljana). These shares have the PILH ticker symbol. D.S.U. still manages 136,171 PILH shares. Article 51 of the Act Concluding Ownership Transformation and Privatisation of Legal Entities Owned by the Development Corporation of Slovenia (the ZZLPPO) provides

Laško Group and Pivovarna Laško

that when the return of shares managed by D.S.U., d. o. o. for the account of denationalisation beneficiaries is rejected by a final judgement since no denationalisation is possible, D.S.U. shall offer the shares to existing shareholders for purchase in the ratio of their existing shareholdings. The value of the shares is determined in accordance with the ZZLPPO. On 13 April 2015, Pivovarna Laško notified its shareholders via SEOnet that after receiving the letter of D.S.U. dated 11 Noveber 2014, it reviewed, together with its attorneys, the documentation relating to the 304 proceedings brought by denationalisation beneficieries over the past 20 and more years relating to the shares of Pivovarna Laško, and that, according to the data held by Pivovarna Laško and its attorneys, all the proceedings have been concluded with final decisions. Pivovarna Laško sent the relevant report together with all the decisions to D.S.U. on 23 April 2015.

5. General Meeting of Shareholders of Pivovarna Union The 24th General Meeting of Shareholders of Pivovarna Union was held on 20 April 2015. Of the total 451,114 shares (451,045 with voting rights), 444,455 votes were present, representing 98.54% of all shares with voting rights. The General Meeting was briefed on the audited Annual Report of the Union Group and Pivovarna Union for 2014, the Report of the Supervisory Board on its verification of the Annual Report, and the Report of the Supervisory Board on its verification of the Management Board's report on transactions with related parties. The shareholders decided to distribute EUR 11,727,170 of the company's profit, which stands at EUR 12,053,414.25 as at 31 December 2014, as dividends to the shareholders (EUR 26 per share), while the remaining EUR 326,244.25 shall remain unallocated. The General Meeting approved the work of the Management and Supervisory Boards and granted them discharge for 2014. The General Meeting appointed Mr Vladimir Malenkovič, Mr Goran Brankovič and Mr Bojan Cizej as members of the Supervisory Board (capital representatives) for a term of 4 years, beginning on 23 June 2015. The General Meeting appointed the audit firm Ernst & Young, Ljubljana as the auditor of the company's 2015 financial statements. The minutes of the General Meeting are available from the company's website: www.pivo-union.si.

6. Data on the conditional resignation of members of the Supervisory Board (capital representatives) On 23 April 2015, Pivovarna Laško received from Družba za upravljanje terjatev bank, d. d., (DUTB) as cordinator of the consortium of sellers of the stake in Pivovarna Laško, notice that it had received the resignation letters of Goran Brankovič, Janez Škrubej, Peter Groznik and Jože Bajuk, who resigned from the Supervisory Board of Pivovarna Laško with legal effect from the date and under the condition that all sales conditions are fulfilled and that the sale will close in accordance with thee PILR Share purchase agreement concuded on 13 April 2015 between the consortium of sellers and Heineken International, B. V., Amsterdam.

Laško Group and Pivovarna Laško

3 FINANCIAL REPORT 3.1 Consolidated financial statements Consolidated income statement of the Laško Group for the period 1 January 2015 to 31 March 2015 (in EUR)

I.-III./2015

I.-III./2014

43,487,955 807,823 774,525 (27,996,750) (9,724,530)

41,570,295 289,595 701,515 (26,329,296) (9,754,968)

(2,864,237) (163,110) (777,677)

(2,841,158) (98,558) (780,922)

3,543,999

2,756,503

(143,564) (2,813,848)

89,634 (13,133,446)

586,587

(10,287,309)

(1,328,494)

1,459,245

NET PROFIT OR LOSS OF THE YEAR FROM CONTINUED OPERATIONS

(741,907)

(8,828,064)

Discontinued operation Jadranska pivovara Split, Birra Peja Kosovo, Radenska

3,329,821

(1,977,234)

NET PROFIT OR LOSS OF THE YEAR FROM DISCONTINUED OPERATIONS

3,329,821

(1,977,234)

TOTAL PROFIT OR LOSS FOR THE YEAR

2,587,914

(10,805,298)

Share of non-controlling interests in net profit /loss Share of the controlling interests in net profit /loss

146,043 2,441,871

(498,102) (10,307,196)

Continued operations Net sales revenues Change in inventories of products and work in progress Other operating revenue Costs of goods, materials and services Employee benefit costs Amortisation of intangible assets and depreciation of property, plant and equipment Revaluation operating expense Other operating expenses OPERATING PROFIT OR LOSS Financial income Financial expenses PROFIT OR LOSS BEFORE TAX Tax

Laško Group and Pivovarna Laško

Consolidated statement of financial position of the Laško Group at 31 March 2015 (in EUR)

31 Mar 2015

31 Dec 2014

237,053,213 64,660,224 133,054,467 4,229,493 204,792 888,411 518,013 2,309,122 2,090,931 29,097,760

238,353,317 64,896,312 133,339,070 4,229,545 204,792 982,066 518,013 2,324,548 2,090,927 29,768,044

79,590,889 5,131,492 19,739,401 46,632,345 1,697,356 2,673,549 1,627,005 2,089,741

112,832,944 42,427,045 17,224,526 42,607,067 1,465,456 2,673,549 1,245,512 5,189,789

515,744

987,085

80,106,633

113,820,029

317,159,846

352,173,346

ASSETS Non-current assets Intangible assets Property, plant and equipment Investment property Long-term investments in the subsidiaries Financial assets available for sale Long-term financial lease receivables Long-term loans Long-term operating receivables Long-term deferred tax assets Short-term assets less short-term deferred and accrued items Non-current assets held for sale Inventories Short-term operating receivables Short-term receivables for excess corporate tax payment Financial assets available for sale Short-term loans Cash and cash equivalents Short-term accruals and prepaid expenditure Total short-term assets TOTAL ASSETS

Laško Group and Pivovarna Laško

Consolidated statement of financial position of the Laško Group at 31 March 2015 (continuation) (in EUR)

31 Mar 2015

31 Dec 2014

EQUITY

56,487,885

62,289,213

Equity of the owners of non-controlling stake

2,418,420

10,661,619

Equity of the owners of the controlling stake Share capital Share premium Profit reserves Revaluation surplus Retained earnings Net profit or loss Translation reserve

54,069,465 36,503,305 2,566,995 3,650,331 2,295,487 6,591,336 2,441,871 20,140

51,627,594 36,503,305 2,566,995 3,650,331 5,124,893 384,294 3,377,636 20,140

260,671,961

289,884,133

10,070,736 5,689,664 4,212,669 168,403

10,152,264 5,746,253 4,209,804 196,207

Long-term liabilities Long-term financial liabilities

108,000,852 108,000,852

105,734,931 105,734,931

Short-term liabilities Liabilities included in the disposals group Short-term operating liabilities Short-term financial liabilities

135,987,720 402,042 38,362,050 97,223,628

167,827,303 9,709,058 35,463,263 122,654,982

6,612,653

6,169,635

Total short-term liabilities

142,600,373

173,996,938

TOTAL EQUITY AND LIABILITIES

317,159,846

352,173,346

LIABILITIES Provisions and long-term accrued costs and deferred revenue Provisions for retirement grants and jubilee awards Other provisions Long-term accrued costs and deferred revenue

Short-term accrued costs and deferred income

Laško Group and Pivovarna Laško

Consolidated cash flow statement of the Laško Group for the period from 1 January 2014 to 31 March 2015 (continued and discontinued operations) (in EUR)

I.-III./2015

I.-III./2014

OPERATING PROFIT

7,083,859

2,221,970

Adjustments for: Tax payable Elimination of revaluation operating expense from fixed assets Depreciation of PPE and investment property Amortisation of intangible assets Impairment of short-term assets Net movements in provisions

(666,176) 23,136 2,674,338 189,899 147,704 (81,528)

3,766,986 240,445 90,735 (35,479)

Total adjustments

2,287,373

4,062,687

MOVEMENTS IN WORKING CAPITAL Inventories and non-current assets held for sale Operating and other receivables Operating and other liabilities

(2,514,875) (4,007,029) 3,680,317

(2,989,191) (1,145,233) 6,550,795

Total movements in working capital

(2,841,587)

2,416,371

NET CASH FLOWS FROM OPERATING ACTIVITIES

6,529,645

8,701,028

Cash flows from investing activities Acquisition /disposal of property, plant and equipment Acquisition / disposal of intangible non-current assets Acquisition / disposal of financial assets Acquisition / disposal of available-for-sale assets Interest income Dividends received and capital gains

(2,791,894) 46,189 (272,412) 27,988,537 201,171 (15,735)

(4,218,526) (79,919) 708,954 83,969 6,213

NET CASH FLOWS FROM INVESTING

25,155,856

(3,499,309)

Cash flows from financing activity Interest paid Capital increase / reduction Increase / decrease in financial debt

(3,271,437) (8,348,679) (23,165,433)

(4,165,866) (2,237,403)

NET CASH FLOWS FROM FINANCING

(34,785,549)

(6,403,269)

(3,100,048)

(1,201,550)

5,189,789 2,089,741

3,004,724 1,803,174

NET INCREASE / DECREASE IN CASH AND CASH EQUIVALENTS Cash and cash equivalents at the beginning of year Cash and cash equivalents at the end of year

Laško Group and Pivovarna Laško

3.2 Notes to the consolidated financial statements Performance analysis of the Laško Group Data on operations (continued and discontinued operations) (in EUR)

I.-III./2015

I.-III./2014

Plan I.-XII./2015

Net sales revenues EBIT Normalised EBIT EBITDA Normalised EBITDA Net interest expense1 Net profit or loss Normalised earnings or loss

49,027,043 7,083,859 3,381,356 9,948,096 6,245,593 -2,662,095 2,587,914 35,602

50,815,290 2,166,674 2,445,282 6,229,402 6,508,010 -4,155,861 -10,805,298 -1,521,295

205,006,564 23,567,245 22,114,804 36,114,988 34,662,547 -9,207,913 10,928,823 9,476,382

0.1 % 0.0 % 7.1 % 13.2 %

-3.2 % -0.3 % 4.9 % 13.1 %

18.2 % 2.5 % 11.2 % 17.5 %

Return on equity (ROE) 3 Return on assets (ROA) 4 EBIT margin 5 EBITDA margin 1

Interest income - interest expense Normalised net earnings or loss / average equity in the period 3 Normalised net earnings or loss / average assets in the period 4 Normalised EBIT / net revenue from the sale of products and services 5 Normalised EBITDA / net revenue from the sale of products and services 2

 Accounting policies The same accounting policies were applied in 2015 as in previous years. The accounting policies are presented in detail in the Annual Report of the Laško Group for the 2014 financial year, which was published on SEOnet, the website of the Ljubljana Stock Exchange, on 20 April 2015. Consolidated financial statements drafted for the first quarter of 2015 have not been audited and have been drafted in accordance with provisions relating to the measurement and recognition as provided by International Financial Reporting Standards (IFRS), and should be read in conjunction with the annual financial statements drafted for the financial year ended 31 December 2014.

 Disclosures to individual items of the consolidated income statement of the Laško Group for the period 1 January to 31 March 2015 a.) Profit or loss from operations (continued operations) The total operating profit or loss of the Laško Group relates to the continued operations, therefore to the companies of the Laško Group excluding Radenska, Birra Peja, and Jadranska pivovara - Split. The results of the latter were recognised as the profit or loss from discontinued operations in compliance with IFRS 5. For Laško Group and Pivovarna Laško

comparative purposes, the operating results of the financial year 2014 have been appropriately modified. In the first quarter of 2015, net sales revenues from continued operations amounted to EUR 43.5 million, which is EUR 1.9 million or 4.6% more than in the same period of the previous year. On the domestic market, the Group generated EUR 36.2 million of net sales revenues, which is EUR 0.4 million or 1.2% more than in the same period of the previous year. In the first quarter of 2015, net sales revenues from sales on foreign markets amounted to EUR 7.3 million, which is EUR 1.5 million or 26% more than in the same period of the previous year. Revenues achieved on the local market account for 83.3% of total revenues, while revenues earned on foreign markets account for 16.7% of total sale revenues. In the first quarter of 2015, the share of net sales revenues generated on export markets increased by 2.8% compared to the same period of the previous year. In the first three months of 2015, operating expenses from continued operations amounted to EUR 41.5 million, up EUR 1.7 million or 4.3% on the same period of last year. The structure of operating expenses is similar to that of the same period of 2014. Costs of materials and power supply account for most of the operating expenses (35.5%), followed by costs of services (29.4%), labour costs (23.4%), depreciation and amortisation (6.9%), cost of goods and materials sold (2.6%) and other operating expenses (1.9%). Compared to the same period of 2014, costs of materials are down EUR 0.5 million, costs of services are up by EUR 1.3 million, and costs of goods and materials sold increased by EUR 0.9 million. Costs of depreciation and amortisation and other operating expenses are similar to those of the same period of 2014. Over the January to March 2015 period, the Laško Group (excluding Radenska and Jadranska pivovara), generatedEUR 3.5 million of earnings before interest and tax (EBIT) from continued operations, up EUR 0.8 million or 28.6% over the same period of 2014. Normalised EBIT, calculated from operating profit increased or decreased by the impact of one-off business events, amounts to EUR 3.3 million and is up EUR 0.3 million on the normalised EBIT recorded in the comparative period of 2014. In the first three months of 2015, the Laško Group generated EUR 6.4 million of EBITDA from continued operations, up EUR 0.8 million on the same period of last year. The normalised EBITDAof the period amounts to EUR 6.2 million, compared to EUR 5.9 million generated in same period of 2014.

b.) Profit or loss from financing (continued operations) In the first three months of 2015, the Group generated a net financing loss of EUR 3 million, mainly on account of financial expenses for interest on bank loans. In the period in question, net financial expenses for interest amounted to EUR 2.7 million, which is EUR 1.3 million less than in the comparable period of 2014.

c.) Net profit or loss (continued operations) In the first three months of 2015 the Laško Group generated EUR 0.7 million of net losses from continued operations. Normalised net loss for the period amounts to EUR

Laško Group and Pivovarna Laško

0.3 million, a reduction of EUR 0.6 million compared to the loss incurred in the same period of 2014.

d.) Profit or loss from discontinued operations The profit or loss from discontinued operations includes profit or loss of companies no longer in the Laško Group or companies which are no longer accounted for as part of continued operations in accordance with IFRS 5. Discontinued operations include profit or loss of Radenska, Jadranska pivovara and Birra Peja generated in the first quarter of 2015. In the first quarter of 2015, the Laško Group generated EUR 3.3 million of net profit, compared to a loss of EUR 2 million incurred in the comparable period of 2014. The effect of final consolidation of Radenska amounts to EUR 2.7 million and is reported as an item of other operating revenues and thus increases the net profit.

 Disclosures to consolidated statement of financial position of the Laško Group at 31 March 2015 As a result of the disposal of Radenska, the net assets of Radenska, which were as at the last day of 2014 reported as non-current assets of disposal groups and current liabilities of disposal group, are no longer included in the consolidated statement of financial position of the Laško Group as at 31 March 2015. As at 31 December 2014, net assets of Radenska amounted to EUR 28 million.

a.) Intangible assets Intangible assets as at 31 March 2015 amount to EUR 64.7 million and include the value of Pivovarna Union brands (EUR 46.5 million), the value of goodwill relating to the investment in Pivovarna Union (EUR 15.8 million) and other intangible assets amounting to EUR 2.4 million). The remaining intangible assets represent material rights, computer software, licences, etc. In the first three months of 2015, the value of intangible assets fell on account of amortisation of EUR 0.2 million. The value of the brands and goodwill relating to the investment in Pivovarna Union were not appraised as at 31 March 2015 as no signs of impairment exist.

b.) Property, plant and equipment The balance of property, plant and equipment of EUR 133.1 million as at 31 March 2015 was down by EUR 0.3 million on account of depreciation of EUR 2.7 million and grew on account of new acquisitions inclusive of advances paid for acquisition of property, plant and equipment amounting to EUR 2.4 million. New acquisitions mainly refer to purchases of production equipment, packaging and marketing equipment.

c.) Long-term available-for-sale financial assets Compared to the first quarter of 2015, the value of long-term available-for-sale financial assets decreased by EUR 101 thousand on account of the sale of shares in Skupna pokojninska družba and amount to EUR 0.9 million.

Laško Group and Pivovarna Laško

d.) Long-term investments in the subsidiaries The long-term financial investments in subsidiaries include investments in unconsolidated subsidiaries. There was no change to the value of these investments compared to 2014 year-end.

e.) Long-term investments into associated companies Long-term investments in the Group's associates include a holding in Thermana, Laško, and a holding in Slopak, Ljubljana. Both investments have been impaired in full in previous years, and therefore their value equals nil as at 31 March 2015. These investments were not appraised as at 31 March 2015.

f.) Long-term loans issued As at 31 March 2015, long-term loans granted amount to EUR 2.3 million. There was no significant change to the value of these investments compared to 2014 year-end.

g.) Long-term deferred tax assets As at 31 March 2015, long-term deferred tax assets stand at EUR 29.1 million. Longterm deferred tax assets relate mainly to the impairment of financial assets and the tax loss, and in a smaller part also to the write-down of receivables, provisions and liabilities due to employees. Long-term deferred tax liabilities refer to the revaluation of property and brands. The amount of long-term deferred tax assets fell in the first three months of 2015 on account of a reduction in the tax loss. The net reduction of longterm deferred tax assets amounts to EUR 0.7 million.

h.) Non-current assets held for sale Non-current assets held for sale include the value of the assets of Jadranska pivovara Split amounting to EUR 5.1 million. As at the last day of 2014, non-current assets included also total assets of Radenska amounting to EUR 37.3 million in accordance with provisions of IFRS 5. Compared to the first quarter of 2015, the value of these assets decreased by the total amount of Radenska assets following the disposal of Radenska.

i.) Inventories As at 31 March 2015, inventories amount to EUR 19.7 million. Compared to the last day of 2014, their value is up EUR 2.5 million, primarily on account of increased purchasing activity during the preparation for the main selling season. Inventories of raw material and materials are up EUR 1.5 million, inventories of work in progress are up by EUR 0.4 million, and inventories of products by EUR 0.6 million, while the inventories of merchandise are at the same approximate level as at the end of last year.

j.) Short-term operating receivables Short-term receivables inclusive of receivables for excess payment of corporate income tax amount to EUR 48.3 million as at 31 March 2015, and are up EUR 4.2 million compared to the balance at 31 December 2014.

Laško Group and Pivovarna Laško

k.) Short-term available-for-sale financial assets The value of available-for-sale short-term financial assets of the Laško Group has not changed compared to the last day of 2014.

l.) Short-term loans issued As at 31 March 2015, short-term granted loans including deposits granted amount to EUR 1.6 million, or EUR 0.4 million up on 2014 year-end.

m.) Equity of the owners of the controlling stake The equity attributed to the controlling interest of the Laško Group as at 31 March 2015 amounts to EUR 54.1 million, up EUR 2.4 million over the controlling interest's equity as at 31 December 2014. The increase is the result of the net profit generated over the first quarter of 2015. Equity of the owners of the controlling interest represents 17% of the total equity and liabilities compared to 14.7% as at the last day of 2014.

n.) Equity of the owners of non-controlling interests As at 31 March 2015, the equity of the non-controlling interests amounts to EUR 2.4 million, representing 4.3% of total equity. Its value increased in the first three months of 2015 on account of the net profit of EUR 0.1 million, and decreased by EUR 8.4 million representing the effect of the final consolidation following the disposal of Radenska.

o.) Liabilities As at 31 March 2015, the total liabilities of the Group amount to EUR 260.7 million, representing 82% of the total equity and liabilities. Compared to 2014 year-end, the amount of liabilities fell by EUR 29.2 million. EUR 9.3 million of this decrease relates to elimination of Radenska from the consolidation following its disposal. Financial liabilities of EUR 205.2 million represent 64.7% of the total equity and liabilities. Compared to the last day of 2014, the balance of financial liabilities decreased by EUR 23.2 million, primarily on account of repayment of bank loans from the consideration received on the disposal of Radenska.

p.) Provisions and long-term accrued costs and deferred income Provisions amounting to EUR 10.1 million as at 31 March 2015 are roughly at the level reported at 2014 year-end. Provisions for termination benefits and jubilee awards amount to EUR 5.7 million, while other provisions relating to the underpayment of water rates and contractual legal actions amount to EUR 4.2 million.

r.) Long-term financial liabilities Long-term financial liabilities as at 31 March 2015 amount to EUR 108 million, up EUR 2.3 million compared to the 2014 year-end. The increase is due to the utilisation of long-term bank borrowings. Long-term borrowings from banks are fully collateralised with shares, real estate, movable property and receivables pledged and guarantees.

Laško Group and Pivovarna Laško

s.) Short-term operating liabilities As at 31 March 2015, short-term operating liabilities amount to EUR 38.4 million. Compared to the last day of the previous year, short-term operating liabilities increased by EUR 2.9 million primarily on account of the increase in supplier payables due to extension of payment terms during the out-of-season period.

t.) Short-term financial liabilities In the first three months of 2015 the amount of short-term financial liabilities decreased by EUR 25.4 million as a result of repayment of bank borrowings from consideration received on disposal of the majority interest in Radenska. As at 31 March 2015, short-term financial liabilities of the Group amount to EUR 97.2 million, of which liabilities of the controlling company Pivovarna Laško amount to EUR 95.3 million. Short-term financial liabilities due to banks are fully collateralised with shares, real estate, movable property and receivables pledged and guarantees.

u.) Short-term accruals and deferred income As at 31 March 2015, short-term accrued costs and deferred income amounted to EUR 6.6. million, reflecting an increase of EUR 0.4 million compared to the last day of 2014. Liabilities related to the holiday entitlement not taken, severance pay for redundant workers, excise duty on unsold products kept in the warehouse and other short- term deferred revenues are disclosed under short-term accruals and deferred income.

v.) Collateralisation of financial liabilities The loans raised with banks amounting to EUR 201.9 million as at 31 March 2015 are fully collateralised with liens on securities, mortgages, the pledge of movable property and receivables. The Group has collateralised its long-term and short-term financial liabilities to banks with 440,295 PULG (Pivovarna Union) shares, 539,516 DELR (Delo) shares, 270,648 EGKG (Elektro Gorenjska) shares, 1,922,321 EMAG (Elektra Maribor) shares and 645,003 ZDRL (Thermana) shares, the value of which amounted to EUR 168.9 million at 31 March 2015. The value of real estate and equipment pledged amounts to EUR 91.2 million, the value of pledged receivables EUR 20.6 million, the value of pledged inventories EUR 2 million and the value of Pivovarna Laško brands pledged EUR 50 million.

z.) Excess short-term liabilities As at 31 March 2015, the Group's total short-term liabilities amounted to EUR 166.7 million, while its short-term assets amounted to EUR 80.1 million. The excess shortterm liabilities amount EUR 62.5 million, and will be settled in the future through the sale of assets and the increase of long-term equity and liabilities.

Laško Group and Pivovarna Laško

3.3 Notes to the separate financial statements The financial statements of Laško Group companies are provided in the appendices to this report. The notes below should be read in conjunction with these financial statements.

1. Performance analysis of Pivovarna Laško Data on operations (in EUR)

I.-III./2015

I.-III./2014

Plan I.-XII./2015

Net sales revenues EBIT Normalised EBIT EBITDA Normalised EBITDA Net interest expense1 Net profit or loss Normalised earnings or loss

17,815,694 1,353,550 1,274,100 2,435,706 2,356,256 -2,639,047 10,763,498 -1,860,787

16,954,994 1,129,941 1,436,729 2,241,120 2,547,908 -3,205,570 -5,222,671 -1,753,603

91,042,698 11,172,190 11,172,190 15,866,551 15,866,551 -7,766,942 23,233,131 23,233,131

-2.9 % -0.6 % 9.1 % 16.8 %

-2.7 % -0.5 % 10.7 % 18.9 %

22.0 % 7.8 % 15.4 % 21.8 %

Return on equity (ROE) 3 Return on assets (ROA) 4 EBIT margin 5 EBITDA margin 1

The same accounting policies were applied to the financial statements for all of the periods presented in this report. A detailed description of accounting policies applied in the recognition and reporting of the financial statement items is included in the Annual Report of Pivovarna Laško and the Laško Group for 2014. No changes were made to the accounting policies over the period from 1 January to 31 March 2015. The financial statements drafted for the first quarter of 2015 have not been audited and have been drafted in accordance with provisions relating to the measurement and recognition as provided by International Financial Reporting Standards (IFRS), and should be read in conjunction with the annual financial statements drafted for the financial year ended 31 December 2014.

Laško Group and Pivovarna Laško

 Disclosures to the individual items of the income statement of Pivovarna Laško for the January - March 2015 period a.) Profit or loss from operations In the first three months of 2015, Pivovarna Laško recorded 3.4% greater quantities sold and generated EUR 17.8 million of net operating revenue, EUR 0.9 million more than in the same period of 2014. In the first quarter of 2015, net sales revenues from products and services amounted to EUR 14 million, which is EUR 0.5 million more than in the same period of the previous year. The Company generated EUR 10.6 million of sales revenue on the domestic market, up EUR 0.4 million or 3.6% more than in the comparable period of 2014. Net sales revenues from products and services on foreign markets amounted EUR 3.4 million, which is EUR 0.2 million or 5.6% more than in the same period of the previous year. Revenues on foreign markets account for 24.3% of total revenues, while the share in the same period of the previous year was 23.9%. The net revenues from sales of merchandise and materials amount to EUR 3.8 million, up EUR 0.3 million on the same period of last year. Total operating revenues in the first quarter of 2015 amount to EUR 18.3 million, which is EUR 1.2 million or 7.1% more than in the same period of 2014. In the first three months of 2015, operating expenses of Pivovarna Laško amount to EUR 16.9 million, up EUR 1 million or 6.2% on the same period of last year. Costs of materials amounting to EUR 5.2 million account for the major share of operating expenses (30.9%) and are at the level recorded at the end of last year; followed by costs of services of EUR 4.2 million or 24.5% of total operating expenses and which are up EUR 0.8 million compared to the comparable quarter of 2014; cost of merchandise sold amounts to EUR 3.7% or 21.7% of total operating expenses; employee benefit costs amounting to EUR 2.5 million or 14.6% of total expenses are comparable to those recorded in the same period of 2014; amortisation and depreciation expenses and operating expenses from revaluation amount to EUR 1.1 million accounting for 6.5% of total operating expenses and are comparable to those recorded in the same period of 2014; and other operating expenses amounting to EUR 0.3 million which account for 1.8% of total operating expenses. Costs of materials and services in the first quarter of 2015 account for 20.8% of planned annual costs, employee benefit costs account for 24.6%, amortisation and depreciation expenses for 23% and other operating expenses for 15.7% of planned annual costs. In the first quarter of 2015 Pivovarna Laško generated EUR 1.4 million of operating profit. In the same period of last year, the operating profit amounted to EUR 1.1 million The normalised EBIT adjusted by the one-off events recognised by Pivovarna Laško in the first quarter of 2015 and which had a positive impact of total EUR 79 thousand amounts to EUR 1.3 million, down EUR 0.2 million compared to the same period of 2014. In the first three months of 2015, the Laško Group generated EUR 2.4 million of EBITDA, up EUR 0.2 million or 8.7% on the same period of last year.

Laško Group and Pivovarna Laško

The normalised EBITDA amounts to EUR 2.4 million and is down EUR 0.2 million on the previous year.

b.) Financing profit or loss Pivovarna Laško generated EUR 10.4 million of financing profit in the first three months of 2015, on account of EUR 13.2 million of financial income from sale of the investments in the subsidiary Radenska, EUR 2.3 million of interest paid on bank borrowings, and interest paid to the companies in the Laško Group amounting to EUR 0.5 million. In the same period net interest expenses amounted to EUR 2.6 million, down EUR 0.6 million over the comparable period of last year, and up EUR 0.2 million over the EBITDA of the period.

c.) Net profit or loss In the first quarter of 2015 the Company generated an operating profit of EUR 11.8 million, while in the same period of last year the Company reported a total operating loss amounting to EUR 5.9 million. Thus the Company generated a net profit of EUR 10.8 million in the first three months of 2015, and recognised certain one-off financial events including EUR 13.2 million gains from disposal of shares in Radenska as the difference between their selling and their carrying amount as at 31 December 2014. The normalised EBIT adjusted by EUR 13 million of the effects of these business events amounts to EUR - 1.9 million.

 Disclosures to the statement of financial position of Pivovarna Laško at 31 March 2015 a.) Intangible assets As at 31 March 2015, intangible assets amounting to EUR 0.7 million include software licences and similar items.

b.) Property, plant and equipment The balance of property, plant and equipment of EUR 43.7 million as at 31 March 2015 is down EUR 0.2 million compared to the same period of last year. In the period, Pivovarna Laško acquired new items of property, plant and equipment totalling EUR 0.7 million and recognised depreciation expenses of total EUR 0.9 million.

c.) Investment property There was no change to the value of these items of investment property compared to 2014 year-end.

d.) Long-term investments in the subsidiaries The long-term financial investments in subsidiaries include investments in subsidiaries. The value of these investments was assessed as at 31 December 2013, while the investment in Delo was assessed as at 30 June 2014. On 17 March 2015 Pivovarna Laško acquired 127,928 of Delo shares as part of the successfully completed sale of its 75.31% interest in Radenska. Consideration paid for the shares amounted to

Laško Group and Pivovarna Laško

EUR 1 million, which is equal to the latest assessed value of the company. As at 31 March 2015, these investments totalled EUR 169.6 million.

e.) Long-term investments into associated companies Long-term investments in the Group's associates include a holding in Thermana Laško, and a holding in Slopak, Ljubljana. Both investments have been impaired in full in previous years, and therefore their value equals nil as at 31 March 2015. As part of the completed sale of the interest in Radenska, Pivovarna Laško acquired 193,237 shares of Premogovnik Velenje at the price of EUR 1. Long-term investments into associates and other companies amount to EUR 0.2 million as at 31 March 2015.

f.) Long-term deferred tax assets As at 31 March 2015, the company recorded long-term deferred tax assets amounting to EUR 28.7 million, down EUR 0.5 million compared to the last day of 2014. This decrease is due to the tax loss recorded.

g.) Assets (disposal groups) held for sale Compared to their balance as at 31 December 2014, the balance of assets held for sale is down by EUR 46.5 million. Assets held for sale included the investment in a 75.31% interest in Radenska, which the Company sold on 17 March 2015 and received consideration amounting to EUR 60 million. Of total consideration received, EUR 33.1 million was allocated for repayment of the loan raised from Radenska; EUR 1 million was spent on the acquisition of 127,928 shares of Delo; EUR 1 million was allocated to settlement of the settlement claim brought by Radenska in accordance with provisions of Article 542. of the Companies Act (ZGD-1); EUR 22.8 million was spent for repayment of financial liabilities to banks; while EUR 2 million was deposited with the notary for a period of up to one year for repayment of any potential additional claims.

h.) Inventories Compared to the last day of 2014, the balance of inventories increased by EUR 1 million to EUR 7.8 million.

i.) Short-term operating receivables As at 31 March 2015, short-term operating receivables amount to EUR 18.9 million, up 0.1 million on 31 December 2014. Some 86.9% of all short-term trade receivables are not past due.

j.) Short-term loans issued As at 31 March 2015, short-term granted loans including deposits granted amount to EUR 0.3 million, which is at the level recorded at 2014 year-end.

k.) Equity As at 31 March 2015, total equity of the Company amounts to EUR 68.8 million, representing 25.1% of the total equity and liabilities. Total amount of capital was increased by the net profit generated in the first quarter of 2015 amounting to EUR 10.8 million.

Laško Group and Pivovarna Laško

l.) Liabilities As at 31 March 2015, the total liabilities of the Group amount to EUR 198 million, representing 72.1% of the total equity and liabilities. The financial liabilities amounting to EUR 168.2 million represent 61.2% of the total equity and liabilities and compared to 31 December 2014, they have fallen by EUR 58.6 million. On account of consideration received on the disposal of Radenska, the Company reduced its financial liabilities to banks by EUR 22.8 million, its financial liabilities to group companies by EUR 33.1 million, and its operating liabilities relating to the settlement claim in accordance with Article 542 of the Companies Act (ZGD-1) by EUR 1 million.

m.) Provisions and long-term accrued costs and deferred income Compared to 31 December 2014, the balance of provisions as at 31 March 2015 has not changed significantly. Provisions for redundancy payments and years of service awards amount to EUR 1.6 million and other provisions to EUR 4.2 million, while long-term accrued costs and deferred income amount to EUR 19 thousand. Other provisions of EUR 4.2 million relate to underpayment of water concession fees between 2005 and 2013, which has been recognised pursuant to the modification of the Waters Act adopted in 2013.

n.) Long-term and short-term financial liabilities Long-term financial liabilities amount to EUR 72.9 million as at 31 March 2015, while short-term financial liabilities amount to EUR 95.3 million. Compared to the last day of 2014, the balance of financial liabilities to banks decreased by EUR 25.4 million, primarily on account of repayment of bank loans from the consideration received on the disposal of Radenska. Borrowings from banks are fully collateralised with shares, real estate, movable property and receivables pledged and guarantees.

o.) Short-term operating liabilities As at 31 March 2015, short-term operating liabilities amount to EUR 29.8 million, an increase of EUR 2 million over the last day of 2014 and account for 10.9% of total equity and liabilities.

p.) Short-term accruals and deferred income Short-term accrued costs and deferred income amount to 2 million and relate to accrued costs, reflecting an increase of EUR 0.7 million compared to the last day of the previous year.

r.) Excess short-term liabilities As at 31 March 2015, the company's total short-term liabilities amount to EUR 125.1 million, while its short-term assets amount to EUR 27.6 million. The excess of shortterm liabilities over short-term assets amounting to EUR 97.5 million presents a high liquidity risk.

Laško Group and Pivovarna Laško

2. Performance analysis of Pivovarna Union, Ljubljana Data on operations (in EUR)

I.-III./2015

I.-III./2014

Plan I.-XII./2015

Net sales revenues EBIT Normalised EBIT EBITDA Normalised EBITDA Net interest expense1 Net profit or loss Normalised earnings or loss

17,746,651 1,973,753 1,806,443 3,196,585 3,029,275 -293,297 1,375,361 1,507,813

17,282,909 1,591,351 1,563,089 2,728,127 2,699,865 -852,716 -3,966,016 770,603

91,519,249 14,235,958 14,235,958 19,484,937 19,484,937 -1,896,451 10,707,934 10,707,934

1.8 % 1.1 % 10.9 % 18.2 %

1.1 % 0.4 % 9.5 % 16.4 %

13.0 % 7.7 % 16.3 % 22.3 %

Return on equity (ROE) 3 Return on assets (ROA) 4 EBIT margin 5 EBITDA margin 1

Normalised EBIT is calculated from the operating profit increased or decreased by the impact of one-off business events inclusive of the sale of PPE and intangible assets, impairment reversal, payment of default interest, loss on disposal of PPE, write-off of receivables and other expenses not associated with products and services. Normalised EBITDA is the sum of normalised EBIT and depreciation and amortisation. The same accounting policies were applied to the financial statements for all of the periods presented in this report. A detailed description of accounting policies applied in the recognition and reporting of the financial statement items is included in the Annual Report of Pivovarna Union and the Union Group for 2014. There was no change in the accounting policies over the period from January to March 2015. The financial statements drafted for the first quarter of 2015 have not been audited and have been drafted in accordance with provisions relating to the measurement and recognition as provided by International Financial Reporting Standards (IFRS), and should be read in conjunction with the annual financial statements drafted for the financial year ended 31 December 2014.

Laško Group and Pivovarna Laško

ď&#x201A;&#x2122; Disclosures to the individual items of the income statement of Pivovarna Union for the January - March 2015 period a.) Profit or loss from operations In the January - March 2015 period, Pivovarna Union generated operating revenues of EUR 18.8 million, which is 4.2% more than in the same period a year before and realised 20.4% of total planned operating revenue in 2015. The company sold 2.7% less in quantitative terms, generating EUR 17.7 million of net operating revenues, which is up 2.7% on those generated in the comparable period of 2014. The revenue generated represents 19.4% of the planned annual revenue. Some 90.3% of all net revenue represents revenue on the sale of beverages, while the remaining revenue represents revenue on the sale of services, merchandise and other. The company generated 80.6% of all revenue through sales of beverages on the Slovenian market, and 19.4% on foreign markets. Since the quantities sold in Slovenia are up by 1.6% compared to the same period last year, Pivovarna Union generated 1.7% more revenues from beverage sales and generated 19.2% of its annual revenues planned. Other revenues on the Slovenian market of EUR 1.4 million represent an increase of 37.1%. The company sold 11.4% less in quantitative terms on export markets, generating 8.3% lower net operating revenues and 18% of its annual revenues planned. Other revenues generated on foreign markets of EUR 0.4 million are up 85.6% compared to the same period of last year and are primarily due to the revenue from licence fees for non-alcoholic beverages. The operating expenses of Pivovarna Union during the January - March 2015 period amount to EUR 16.9 million, up 2.3% on the same period of 2014, and account for 21.6% of the annual plan. Most - as much as 41.8% of all operating expenses - represent costs of materials of EUR 7 million. Compared to the same period of 2014, they are down 3.1% or EUR 0.2 million, representing 21.3% of the plan for 2015. While the scope of sales has not changed significantly, the costs of raw materials, water, packaging materials and writeoff of packaging have in fact decreased as the company succeeded in reducing some purchasing prices. In the first quarter of 2015 the costs of materials for the canteen-pub are up (in the comparable period of 2014 these costs were not incurred), as are costs of spare parts for electrical and machinery installations, and costs of write-off of small tools. Costs of services of EUR 4.3 million represent 25.5% of all operating expenses and are up 8.7% on last year, accounting for 19.5% of the annual plan. Marketing costs represent a major component of costs of services. The former amount to EUR 1.6 million and are up 1.4% on the same period of 2014. Over the period January - March 2015, the company incurred higher costs of consultancy and intellectual services, legal fees, external audit fees, facility maintenance costs and servicing of bottling devices and other equipment. On the other hand, the costs of transportation and reimbursements paid to employees have decreased. Compared to last year, labour costs of EUR 3 million are up 4.1% and represent 25.7% of the annual plan. This increase is partly due to the accrued costs of Christmas bonus

LaĹĄko Group and Pivovarna LaĹĄko

in the period January - March 2015, while in the comparable period of 2014 the cost of Christmas bonuses was not accrued. Write-downs amounting to EUR 1.2 million are up 7.3% on account of increased amortisation and depreciation expense. Other operating expenses of EUR 0.4 million are down 4.8% and stand at 21.5% of the annual plan. In the January - March 2015 period, Pivovarna Union generated an operating profit of EUR 2 million, which is 24% more than in the same period of the previous year. The profit generated accounts for 13.9% of the plan for the year. The simplified EBITDA for the January to March 2015 period amounts to EUR 3.2 million, up EUR 0.5 million or 17.2% on the comparable period of 2014. The normalised EBITDA amounting to EUR 3 million is up 12.2% on the normalised EBITDA of the previous period.

b.) Financing profit or loss In the period, the company recorded a financing profit of EUR 0.3 million, representing 14.2% of the annual plan. Compared to the January - March period of the previous year, financial revenue of EUR 0.2 million is down 35.4% or EUR 0.1 million, primarily as a result of reduced income from loans issued to companies in the Laško Group. In the period under review, financial expenses of EUR 0.5 million are down EUR 6.2 million or 93% compared to the same period of 2014. In 2015, the company did not impair any financial assets, while in the first quarter of 2014, the company recorded EUR 5.6 million of expenses from the impairment of MELR shares to their stockmarket price. Majority of financial expenses incurred over the period January - March 2015 represents EUR 0.4 million of interest paid on borrowings raised from banks, down 58.7% compared to the same period of 2014.

c.) Net profit or loss The net profit of the period amounts to EUR 1.4 million, while in the comparable period of last year the company incurred EUR 4 million of losses. The financial result generated by the company in the January - March 2015 period is up EUR 6.1 million on the result of the comparable period of 2014. As a result of the tax loss recognised at 2014 year-end amounting to EUR 34.1 million, the company accounted for the loss in its income tax declaration for the January March 2015 period and reduced the income tax accordingly, which stands at EUR 0.2 million. Due to the settlement of tax losses, the amount of deferred tax assets have reduced accordingly, reducing total operating profit by EUR 0.2 million. Normalised net profit amounts to EUR 1.5 million, exceeding last year's figure of the comparable period by 95.6%.

Laško Group and Pivovarna Laško

 Disclosures to the statement of financial position of Pivovarna Union at 31 March 2015 As at 31 March 2015, the total assets of Pivovarna Union amount to EUR 144.5 million, up 2% or EUR 2.8 million compared to the balance at 31 December 2014 mainly on account of an increase in short-term assets.

a.) Intangible assets As at 31 March 2015 intangible assets amounting to EUR 0.2 million include software licences, development costs and other deferred costs.

b.) Property, plant and equipment Compared to the last day of 2014, property, plant and equipment amounts to EUR 72 million as at 31 March 2015, reflecting depreciation of EUR 1.2 million, additions of EUR 1.3 million and advances paid for property, plant and equipment of EUR 0.1 million.

c.) Investment property Investment property amount EUR 0.4 million as at 31 March 2015 and remain unchanged.

d.) Available-for-sale financial assets Compared to 31 March 2015, the value of long-term available-for-sale financial assets amount to EUR 0.3 million. In the period under review, the company sold its investment in Skupna pokojninska družba.

e.) Long-term loans issued Compared to 31 December 2014, the value of long-term loans granted did not significantly change as at 31 March 2015 and amounts to EUR 11.6 million. The company also discloses a loan (principal only) of EUR 9.3 million given to the controlling entity Pivovarna Laško among long-term financial investments, as well as a deposit of EUR 2.1 million and other financial receivables amounting in total to EUR 0.2 million. Following the sale of Radenska in March 2015, the deposit of EUR 2 million is no longer pledged as collateral for financial liabilities of the parent company Pivovarna Laško.

f.) Long-term deferred tax assets As at 31 March 2015, the company recorded long-term deferred tax assets amounting to EUR 6.3 million. Compared to the end of 2014, long-term deferred tax assets are down EUR 0.2 million mainly due to the reversal of the deferred tax on account of reduction in the tax losses.

Laško Group and Pivovarna Laško

g.) Inventories Due to seasonality, the value of inventories grew by EUR 1.6 million or 19.4% compared to the end of the previous year. Inventory of materials is up EUR 0.8 million, inventory of work in progress by EUR 0.4 million and inventory of products by EUR 0.4 million.

h.) Short-term operating receivables Compared to 31 December 2014, short-term trade receivables, which amount to EUR 38.1 million as at 31 March 2015, are up EUR 3.9 million or 11.4%, which is partially the result of settlement delays, as well as the seasonal effect. Receivables due from Laško Group companies account for 36.2% of all receivables. Some 54.9% of all short-term trade receivables are not past due. Short-term receivables for excess corporate income tax payment grew by EUR 0.2 million in accordance with the amount of income tax imposed for the financial year 2014.

i.) Short-term available-for-sale financial assets As at 31 March 2015, the company discloses short-term financial investments of EUR 2.4 million, which remain unchanged compared to their balance as at the last day of 2014. The investment in shares of Elektro Maribor of EUR 2.4 million accounts for the majority of short-term investments.

j.) Short-term loans issued Short-term loans of total EUR 0.1 million were mainly granted to companies in the Laško Group and their balance has not changed significantly compared to the balance at 2014 year-end.

k.) Equity As at 31 March 2015, equity amounts to EUR 84.9 million, reflecting an increase of EUR 1.4 million compared to the last day of 2014, mainly on account of profit of the first quarter of the year of EUR 1.4 million. Some 59% of all liabilities are equity, while liabilities amount to 41%.

l.) Provisions Provisions for redundancy payments and years of service awards decreased by 0.1% compared to the 2014 year-end on account of provisions utilisation.

m.) Long-term financial liabilities As at 31 March 2015, the company's long-term financial liabilities amount to EUR 40.5 million. Compared to the last day of 2014, the balance of long-term financial liabilities increased by EUR 2.7 million or 7.2%. The increase is due to utilisation of renewable bank borrowings as at 31 March 2015.

Laško Group and Pivovarna Laško

n.) Short-term financial liabilities As at 31 March 2015, short-term financial liabilities amount to EUR 0.1 million, representing an EUR 1.1 million (or 88.7%) decrease from the end of 2014 due to the repayment of short-term financial liabilities to Radenska.

o.) Short-term operating liabilities As at 31 March 2015, short-term operating liabilities amount to EUR 16.1 million, and have remained at the level recorded on the last day of 2014. Supplier payables are down by EUR 0.1 million or 1.3% primarily due to improved payment discipline. Liabilities to the Laško Group companies amount to EUR 1.2 million and are down EUR 0.3 million or 20%. None of the liabilities to the companies in the Laško Group are past due. Liabilities to the Group account for 12.1% of all supplier payables. Some 99.6% of supplier payables are not past due, while 0.4% are past due. Other short-term operating liabilities are y EUR 0.4 million or 6.3% as a result of the increase in excise duty and VAT payable to the state.

p.) Short-term accruals and deferred income As at 31 March 2015 short-term accruals and deferred income amount to EUR 1.1 million, down EUR 0.1 million on the last day of 2014. This is due to a reduction in accrued costs and also a result of a decline in deferred income from default interest.

r.) Excess short-term liabilities and net debt Compared to 2014 year-end, the Laško Group reports an excess of short-term assets over short-term liabilities in the amount of EUR 34.2 million, up 13.7%. As at 31 March 2015 net debt as the difference between all available-for-sale assets, loans granted, cash and cash equivalents, and all financial liabilities amounts to EUR 25.5 million.

Laško Group and Pivovarna Laško

3. Performance analysis of Radenska, Radenci Data on operations (in EUR) Net sales revenues EBIT Normalised EBIT EBITDA Normalised EBITDA Net interest expense1 Net profit or loss Normalised earnings or loss 2

Return on equity (ROE) 3 Return on assets (ROA) 4 EBIT margin 5 EBITDA margin

I.-III./2015

I.-III./2014

Plan I.-XII./2015

5,457,193 224,730 3,451 786,000 564,721 355,877 376,168 363,953

5,706,488 108,701 108,783 621,138 621,220 324,892 -522,272 556,044

29,336,609 3,633,483 2,181,042 5,924,751 4,472,310 1,808,412 4,677,695 3,225,254

0.6 % 0.5 % 0.1 % 10.4 %

0.9 % 0.7 % 1.9 % 10.9 %

4.8 % 4.3 % 7.5 % 15.3 %

The same accounting policies were applied to the financial statements for all of the periods presented in this report. A detailed description of accounting policies applied in the recognition and reporting of the financial statement items is included in the Annual Report of Radenska for 2014. No changes were made to the accounting policies over the period from 1 January to 31 March 2015. The financial statements drafted for the first quarter of 2015 have not been audited and have been drafted in accordance with provisions relating to the measurement and recognition as provided by International Financial Reporting Standards (IFRS), and should be read in conjunction with the annual financial statements drafted for the financial year ended 31 December 2014.

 Disclosures to the individual items of the income statement of Radenska for the January - March 2015 period a.) Profit or loss from operations In the first three months of 2015, Radenska generated EUR 5.4 million of net sales revenue, a drop of 4.4% or EUR 0.2 million less than in the same period in 2014. In the January to March 2015 period, net revenues from the sale of goods and services amounted to EUR 5.4 million, down 4.5% or EUR 0.3 million less than in the same period of the previous year, standing at 18.5% of the plan. On the domestic market, the company generated EUR 4.8 million of net sales revenues, which is EUR 0.2 million or 4.7% less than in the same period of the previous year. Net sales revenues from products and services on foreign markets amounted EUR 0.6 million, which is EUR

Laško Group and Pivovarna Laško

0.02 million or 2.8% less than in the same period of the previous year. Revenues on foreign markets account for 12.0% of total revenues, while the share in the same period of the previous year was 11.8%. In the first three months of 2015, total operating revenues of Radenska amount to EUR 5.8 million, up EUR 0.09 million or 1.5% on the same period of last year. In the first three months of 2015, operating expenses of Radenska amount to EUR 5.6 million, down EUR 0.03 million or 0.5% on the same period of last year. Costs of materials amounting to EUR 1.8 million account for the major share of operating expenses (32.5%); followed by costs of materials amounting to EUR 1.8 million; costs of services of EUR 1.7 million or 30.2% of total operating expenses; employee benefit costs amounting to EUR 1.4 million or 1,4% of total expenses; amortisation and depreciation expenses amount to EUR 0.5 million or 10.0% of total expenses; cost of other services amount to EUR 0.1 million of 2.4% of total operating expenses and cost of merchandise amounting to EUR 0.01 million, and account for 0.2% of total operating expenses. Costs of materials, services and depreciation and amortisation expenses are all down compared to the first quarter of 2014, whereas employee benefit costs and other operating expenses are on the increase. In the January to March 2015 period Radenska generated EUR 0.2 million of operating profit, up 106.7% on the profit achieved in the comparable period of 2014 when its reported profit of total EUR 0.1 million. Normalised EBIT has been adjusted for one-off events that occurred in 2014 and 2015. In the first three months of 2015, Radenska generated EUR 0.003 million of normalised EBIT, down 96.8% or EUR 0.1 million on the same period of last year. The simplified EBITDA for the period January to March 2015 amounts to EUR 0.7 million, up EUR 0.2 million or 26.5% on the comparable period of 2014. The normalised EBITDA amounts to EUR 0.5 million and is down 9.1% on the previous year.

b.) Financing profit or loss In the first three months of 2015 Radenska generated EUR 0.2 million of profit from financing. Financial revenues amount to EUR 0.4 million, which is down 10.7% or EUR 0.05 million on the same period of 2014. In the first three months of 2015, financial expenses of EUR 0.2 million dropped by 86.7% or EUR 1.1 million compared to the previous year. This deviation is mainly the consequence of EUR 1.2 million of impairment loss recognised on MELR shares in 2014.

c.) Net profit or loss In the January to March 2015 period Radenska generated EUR 0.4 million of profit, up EUR 1.1 million on the profit achieved in the comparable period of 2014.

Laško Group and Pivovarna Laško

In the first three months of 2015, the company generated EUR 0.3 million of net profit, up EUR 0.9 million on the same period of last year when it reported a loss of EUR 0.5 million. The normalised EBITDA for the first quarter of 2015 and 2014, adjusted by the impact of one-off business and financial events as well as taxes, amounts to EUR 0.3 million, down EUR 0.2 million or 34.5% on the comparable period of 2014.

 Disclosures to the statement of financial position of Radenska at 31 March 2015 a.) Intangible assets As at 31 March 2015 intangible assets amounting to EUR 0.4 million include software licences and research and development costs.

b.) Property, plant and equipment In the period under review, property, plant and equipment decreased by EUR 0.6 million or 3.1%. The company made EUR 0.11 million of capital investments in the first quarter of 2015. Depreciation expense of the period amounts to EUR 0.6 million, up EUR 9.5% on the same period in 2014, accounting for 24.5% of the annual plan.

c.) Investment property There was no change to the value of these items of investment property compared to 2014 year-end. The most recent valuation of investment property was made as at 31 December 2013. No indications of impairment of investment property were reported in 2014 since the main assumptions used in the valuation performed in 2013 had not changed significantly as was confirmed by the external certified appraiser.

d.) Available-for-sale financial assets The value of long-term available-for-sale financial assets, which stood at EUR 0.15 million as at 31 March 2015, are down by EUR 1.0 million compared to as at 31 Decemmbr 2014, on account of the sale of the investment in Delo and the shares in Skupna pokojninska družba.

e.) Long-term investments in the subsidiaries The long-term financial investments in subsidiaries include investments in unconsolidated subsidiaries. There was no change to the value of these investments (EUR 0.2 million) compared to 2014 year-end.

f.) Long-term loans issued As at 31 March 2015 Radenska reports no long-term loans issued since the parent Pivovarna Laško repaid the total amount of borrowings raised from Radenska in the amount of EUR 33.1 million.

Laško Group and Pivovarna Laško

g.) Long-term deferred tax assets As of 31 March 2015, the company recorded long-term deferred tax assets amounting to EUR 4.0 million, down EUR 73 thousand or 1.8%. As a result of the sale of investment in Delo, the company derecognised deferred tax assets of EUR 2.7 million, and a further EUR 0.7 million on account of the disposal of shares in Premogovnik Velenje. In total, the company derecognised EUR 3.4 million of deferred tax due to the disposal of investments. In the first three months of 2015 the company reports tax losses of EUR 19.8 million resulting from recognition of impairments of investments in Delo and Premogovnik Velenje Deferred tax assets recognised on account of cumulative tax losses of EUR 24.2 million amount to EUR 4.1 million, up EUR 3.4 million compared to the balance at the last day of 2014. They were was calculated using the general income tax rate of 17%.

h.) Inventories Inventories of intermediate goods and finished products are up 2.0%.

i.) Short-term operating receivables Compared to 31 December 2014, short-term trade receivables, which amount to EUR 4.6 million as at 31 March 2015, are down EUR 0.7 million or 14%.

j.) Short-term available-for-sale financial assets As at the balance sheet date, the value of short-term financial assets available for sale equals EUR 0.37 million relating to Pivovarna Laško shares (PILR). Compared to the balance as at 31 December 2014, the value of PILR shares dropped a further 10.6% equal to EUR 0.04 million. On 17 March 2015 Radenska disposed of its investment in Premogovnik Velenje; impairment loss of total amount of the investment was recognised by the company as at 31 December 2014.

k.) Short-term loans issued As at 31 March 2015, short-term loans inclusive of interest amount to EUR 6.3 million, an increase of EUR 0.5 million or 9.2% on the comparable period of 2014. As of the reporting date, the Company reports EUR 0.02 million of loans to related party Miral, and EUR 6.2 million of deposits. On 17 March 2015 Pivovarna Union and Laško Grupa Zagreb repaid all of their borrowings from the company totalling EUR 1.4 million.

l.) Cash and cash equivalents As at 31 March 2015, the company discloses EUR 35.0 million of cash and cash equivalents. These are proceeds from repayment of loans granted to Pivovarna Laško, Pivovarna Union, Laško Grupa Zagreb, and disposal of Delo shares (DELR).

m.) Equity The equity of Radenska amounting to EUR 65.4 million is up 0.5% on account of the profit generated in the first quarter of 2015 of EUR 0.3 million.

Laško Group and Pivovarna Laško

n.) Provisions Compared to 31 December 2014, the balance of provisions as at 31 March 2015 has not changed significantly. Provisions for redundancy payments and years of service awards amount to EUR 0.8 million and decreased by 3.0% compared to the 2014 year-end on account of provisions utilisation. Other provisions of EUR 4.2 million set aside for liabilities arising from a legal action in accordance with the opinion of the legal counsel have remained at the level recognised at 31 December 2014. Provisions in the amount of EUR 1.3 million set aside for bonuses to legal counsel representing Radenska in the denationalisation process have remained unchanged. The basis for establishment of these provisions was the contract agreed between the legal counsel and the company. Provisions of EUR 1.3 million relate to underpayment of water concession fees between 2005 and 2013, which has been recognised pursuant to the modification of the Waters Act adopted in 2013.

o.) Short-term financial liabilities Radenska reports no short-term financial liabilities as at the reporting date.

p.) Short-term operating liabilities Compared to 2014 year-end, short-term operating liabilities amount to EUR 3.1 million as at 31 March 2015, a decrease of EUR 1.0 million. Of total operating liabilities, EUR 0.6 million or 18.4% relates to investments made in the acquisition of fixed assets, which have not yet matured.

r.) Short-term accruals and deferred income As at 31 March 2015, accruals and deferred income amount to EUR 0.8 million, up 0.3 million or 66.3% on 31 December 2014. In relation to the first quarter of 2015, the company accrued the costs of holiday pay and Christmas bonus, quantity discounts and sale promotions, as well as 3/12 of the planned costs of property insurance premium and urban land rates. In addition, the company also recognised deferred revenue from default interest charged.

Laško Group and Pivovarna Laško

4. Performance analysis of Vital Mestinje Data on operations (in EUR) Net sales revenues EBIT EBITDA Net interest expense1 Net profit or loss 2

Return on equity (ROE) 3 Return on assets (ROA) 4 EBIT margin 5 EBITDA margin

I.-III./2015

I.-III./2014

Plan I.-XII./2015

1,063,703 -27,729 42,019 2,890 -24,839

1,146,632 -35,391 35,000 2,947 -32,444

4,629,150 55,585 388,985 1,750 57,335

-0.7 % -0.6 % -2.7 % 4.1 %

-0.9 % -0.7 % -3.1 % 3.1 %

1.6 % 1.3 % 1.2 % 8.5 %

Interest income - interest expense Net earnings or loss / average equity in the period 3 Net earnings or loss / average assets in the period 4 EBIT / net revenue from the sale of products and services 5 EBITDA / net revenue from the sale of products and services 2

 Disclosures to the individual items of the income statement of Vital Mestinje for the January - March 2015 period a.) Profit or loss from operations In the first three months of 2015, Vital Mestinje generated EUR 1.06 million of net sales revenue, a drop of 7.2% or EUR 82.93 thousand less than in the same period in 2014. In the first three months of 2015, net revenues from the sale of products and services amounted to EUR 1.02 million, which is EUR 99.74 thousand (or 8.9%) less than in the same period of the previous year, standing at 22% of the plan. On the domestic market, Vital generated EUR 1.03 million of net sales revenues, which is EUR 77.69 thousand or 7.0% less than in the same period of the previous year. In the January to March 2015 period, net revenues from the sale of products and services on foreign markets amounted to EUR 30.80 thousand, down 14.5% than in the same period of the previous year. Revenues on foreign markets account for 2.9% of total revenues, while the share in the same period of the previous year was 3.1%. In the January to March 2015 period, total operating revenues amount to EUR 1.07 million, down EUR 95.16 thousand or 8.2% on the same period of last year. In the first three months of 2015, operating expenses of Vital Mestinje amount to EUR 1.09 million, down EUR 102.82 thousand or 8.6% on the comparable period of last year. Costs of materials amount to EUR 772.66 thousand and account for the major share of operating expenses (66.0%); followed by payroll costs of EUR 175.72 (16.1%); costs of services amount to EUR 86.44 thousand and account for 7.9% of total operating expenses; followed by amortisation and depreciation costs amounting to EUR 69.75 thousand (6.4%); cost of merchandise amount to EUR 33.77 thousand

Laško Group and Pivovarna Laško

(3.1%); and costs of other services which amount to EUR 6.73 thousand and represent 0.6% of total operating expenses. Costs of materials are down EUR 131.25 thousand compared to the same period of 2014, costs of amortisation and depreciation, payroll costs and other operating expenses are also down, while the costs of services are up EUR 18.08 thousand. Costs of materials and services in the first quarter of 2015 account for 24% of planned annual costs, which corresponds to the share of net sales revenue compared to the annual plan. Employee benefit costs account for 22%, amortisation and depreciation expenses for 21%, costs of services for 22% and other operating expenses for 28% of planned annual costs. In the first three months of 2015 Vital Mestinje incurred EUR 27.73 thousand of net operating losses. In the same period of last year, the operating loss amounted to EUR 35.39 thousand. In the first three months of 2015, the company generated EUR 42.02 thousand of EBITDA, up EUR 7.02 thousand or 20.1% on the same period of last year.

b.) Financing profit or loss In the first three months of 2015, Vital generated EUR 2.89 thousand of financing profit, which is comparable to the same period of 2014.

 Disclosures to the statement of financial position of Vital Mestinje at 31 March 2015 a.) Intangible assets As at 31 March 2015 intangible assets amounting to EUR 14.96 thousand include software licences and similar items.

b.) Property, plant and equipment The balance of property, plant and equipment of EUR 1.66 million as at 31 March 2015 is down by EUR 61.58 thousand compared to the 2014 ear-end. Over the period under review, Vital Mestinje acquired new items of property, plant and equipment totalling EUR 6.33 thousand and recognised depreciation expenses of total EUR 67.91 thousand.

c.) Available-for-sale financial assets Compared to 31 December 2014, the value of long-term available-for-sale financial assets did not change as at 31 March 2015 and amounts to EUR 11.54 thousand.

d.) Inventories Compared to the last day of 2014, the balance of inventories decreased by EUR 57.45 thousand to EUR 810.38 thousand as at 31 March 2015.

Laško Group and Pivovarna Laško

e.) Short-term operating receivables Compared to the last day of 2014, the balance of inventories increased by EUR 135.34 thousand to EUR 833.12 thousand as at 31 March 2015.

f.) Short-term available-for-sale financial assets Vital Mestinje reports no available-for-sale short-term financial assets as at 31 March 2015.

g.) Short-term loans issued As at 31 March 2015, short-term granted loans including deposits granted amount to EUR 752.00 thousand, down EUR 98.00 thousand compared to 2014 year-end.

h.) Equity of the owners of the controlling stake As at 31 March 2015, total equity of the Vital Mestinje amounts to EUR 3.45 million, representing 77.79% of the total equity and liabilities. The equity has reduced by EUR 24.84 thousand of losses incurred in the first quarter of 2015.

i.) Liabilities As at 31 March 2015, the total liabilities of Vital amount to EUR 748.64 thousand, representing 16.9% of the total equity and liabilities. The financial liabilities of EUR 38.22 thousand represent 0.9% of the total equity and liabilities and compared to 31 December 2014, they have fallen by EUR 20.85 thousand.

j.) Provisions and long-term accrued costs and deferred income As at 31 March 2015 the balance of provisions has not changed compared to 2014 yearend. Provisions for redundancy payments and years of service awards amount to EUR 92.20 thousand, while long-term accrued costs and deferred income amount to EUR 143.47 thousand and relate to the water rights for the 2005 - 2014 period.

k.) Long-term and short-term financial liabilities Long-term financial liabilities amount to EUR 27.02 thousand as at 31 March 2015, while short-term financial liabilities amount to EUR 11.19 thousand. Compared to the last day of 2014, borrowings from banks decreased by EUR 20.85 thousand.

l.) Short-term operating liabilities As at 31 March 2015, short-term operating liabilities amount to EUR 625.84 thousand, an increase of EUR 87.22 thousand over the last day of 2014 and account for 14.1% of total equity and liabilities.

m.) Short-term accruals and deferred income Short-term accrued costs and deferred income amount to EUR 84.59 thousand and relate to accrued costs, reflecting an increase of EUR 45.14 thousand compared to the last day of 2014.

Laško Group and Pivovarna Laško

n.) Excess short-term liabilities As at 31 March 2015, the total liabilities of Vital amount to EUR 637.03 thousand, compared to EUR 2.74 thousand of total short-term assets.

5. Performance analysis of Delo, Ljubljana Data on operations (in EUR) Net sales revenues EBIT EBITDA 1 Net interest expense Net profit or loss Return on equity (ROE)2 3 Return on assets (ROA) 4 EBIT margin 5 EBITDA margin

I.-III./2015

I.-III./2014

Plan I.-XII./2015

9,930,766 200,828 629,857 -80,255 172,129

10,031,767 148,178 612,630 -124,983 36,538

39,396,660 1,213,392 2,993,670 -334,900 810,411

4.5 % 1.8 % 2.0 % 6.4 %

3.0 % 1.3 % 1.5 % 6.1 %

1.5 % 0.6 % 3.1 % 7.7 %

 Disclosures to the individual items of the income statement of Delo for the January - March 2015 period a.) Profit or loss from operations In the first three months of 2015, Delo recorded an operating profit of EUR 201 thousand, which is EUR 53 thousand more than in the same period of last year. The profit generated accounts for 17% of the plan for the year. In the first quarter of 2015, Delo generated EUR 10 million of operating revenues, 1% less than last year (EUR -100 thousand). The revenues generated represent 25% of the revenue planned. Print revenues are 2% above the plan (EUR 117 thousand), and are EUR 160 thousand down on the same period last year. Advertising revenues are 4% up on the plan and 6% up on those of last year (in nominal terms an increase of EUR 132 thousand). Laško Group and Pivovarna Laško

In the first quarter of 2015, Delo recorded EUR 9.8 million of operating expenses. Operating expenses are 2% down on those last year (EUR -154 thousand). Costs of service are in line with the plan and comparable to the same period of 2014. Labour costs are as planned and 3% down on last year (EUR -101 thousand in nominal terms). Material costs are 5% down on last year (EUR -105 thousand in nominal terms).

b.) Financing profit or loss In the first quarter of 2015, Delo incurred a financing loss of EUR 29 thousand. In this period, financial revenues amounted to EUR 53 thousand, up EUR 34 thousand on those in the same period of 2014. Majority of revenues were generated from the sale of SPDR shares and from revaluation of the net asset value of mutual funds' units as at 31 March 2015. In the first three months of 2015, financial expenses of EUR 82 thousand dropped by 27% or EUR 48 thousand compared to the comparable period of 2014.

 Disclosures to the statement of financial position of Delo at 31 March 2015 Compared to 31 December 2014, the total assets of Delo as at 31 March 2015 of EUR 32.7 million are EUR 0.9 million or 3% down, which is the result of a reduction in long-term and short-term assets.

a.) Intangible assets As at 31 March 2015, intangible assets amounting to EUR 1.4 million are down EUR 133 thousand compared to 2014 year-end as a result of amortisation and depreciation expenses.

b.) Property, plant and equipment The balance of property, plant and equipment of EUR 17.9 million as at 31 March 2015 is down by EUR 249 thousand compared to the 2014 year-end due to the amortisation and depreciation expenses in excess of the new investments made.

c.) Investment property In the first quarter of 2015 there was no change to the value of these items of investment property, which stands at EUR 56 thousand, compared to 2014 year-end.

d.) Available-for-sale financial assets Compared to 31 December 2014, the value of long-term available-for-sale financial assets increased as at 31 March 2015 by EUR 7 thousand and amounts to EUR 428 thousand. The increase is due to the revaluation to the market value.

e.) Long-term investments in the subsidiaries The long-term financial investments in subsidiaries include a 100% investments in equity of subsidiary Izberi, d. o. o.

Laško Group and Pivovarna Laško

f.) Long-term deferred tax assets As at 31 March 2015, the company recorded long-term deferred tax assets amounting to EUR 2.9 million, the same as at the last day of 2014.

h.) Inventories Compared to the last day of 2014, the balance of inventories decreased slightly by EUR 0.1 million to EUR 1.1 million.

i.) Short-term operating receivables As at 31 March 2015, short-term operating receivables amount to EUR 3.3 million, down 0.3 million on 31 December 2014.

j.) Short-term loans issued Short-term loan in the amount of EUR 500 thousand represent a bank deposit.

k.) Equity of the owners of the controlling stake Compared to the last day of 2014, equity of EUR 12.3 million is up EUR 172 thousand on account of the profit generated in the first three months of 2015.

l.) Liabilities As at 31 March 2015, the total liabilities of Delo amount to EUR 13.8 million, representing 48.7% of the total equity and liabilities. The financial liabilities amounting to EUR 5.7 million represent 20.1% of the total equity and liabilities and compared to 31 December 2014, they have fallen by EUR 491 thousand.

n.) Long-term and short-term financial liabilities As at 31 March 2015, Delo had EUR 5.7 million of short- and long-term financial liabilities due to banks. Compared to 31 December 2014, the company's debt has fallen by EUR 491 thousand.

o.) Short-term operating liabilities Short-term trade payables of EUR 3.9 million as at 31 March 2015 are up EUR 269 thousand on the comparable period of the previous year.

p.) Short-term accruals and deferred income Compared to 31 December 2014, these are down EUR 230 thousand or 7% to EUR 3.1 million, due to utilisation of deferred income in the first three months of 2015 on account of subscriptions for 2015 paid in December 2014.

Laško Group and Pivovarna Laško