Company profile

Mercator Group

Mercator Group. More than 1,586 stores in 5 countries. Best neighbour for already 65 years.

Mercator is the largest retailer in SEE and is among top retailers in

its core markets: Slovenia, Croatia, Serbia, BiH and Montenegro.

The Group is present in Slovene market with 7 companies, 8 more

subsidiaries operate in other markets of SEE.

Poslovni sistem Mercator, d.d., headquartered in Slovenia, is the

parent company of the Group.

Management board

Drago Kavšek Senior Vice President for

Strategic Finance and IT

since May 28, 2012

Toni Balažič Company Management

Board President

since May 18, 2012

Igor Maroša Senior Vice President for

Mercator Trade Slovenia

and Croatia

since May 28, 2012

Stanka Pejanović Senior Vice President for

Mercator Operations SEE

since March 30, 2010

1949: Establishment of the »Živila Ljubljana« wholesale company,

the predecessor of Poslovni sistem Mercator, d.d.

From 1953 to late 1990: Intensive process of taking over other

smaller retailers in Slovenia. In 1993 the start of privatization with an initial public offering of shares, the largest privatization project in Central Europe by volume and value of capital. Mercator introduced the first self-service store in Slovenia.

1953: »Živila Ljubljana« is renamed to »Mercator«.

From the beginning of 2000 … With the establishment of subsidiaries in Croatia, Serbia, Bosnia and Herzegovina Montenegro, Mercator entered foreign markets. Mercator has, as the first retailer in Slovenia, introduced innovations such as private label products, self-service cashier, online store, Pika card, new format of small stores called Mercator Neighbour, …

65 years: from small Slovene wholesaler to the biggest retailer in SEE

Vision

Mercator will be the largest, the most successful and the most efficient retailer in the region.

Mission

• A satisfied customer recognizes us as the best retailer that offers everything a discount store can offer, and much more.

• Employees with smiles on their faces and sparkles in their eyes are our key competitive advantage. They will be able to develop their potential in a stable environment.

• We are striving towards a stable ownership structure that will support the company development based on merit and results.

• Mercator is striving to win the confidence of all stakeholders.

Our vision and mission

New strategy: management of two separate groups of markets, simplifying formats with focus on profitability and growth

Focus Optimization Profitability Growth

Mercator Group key figures

Turnover

EUR 1,300 mn

2Q14

EBITDA

EUR 47.3 mn

Net financial debt

EUR 986.0 mn

CAPEX

EUR 9.9 mn

Net income

EUR -13.7 mn

Number of stores

1,586

Number of employees

22,663

Home products:

5.3 % of revenue

Real estate and

other business activities: 7.2 % of revenue

FMCG: 87.5 % of revenue

Strategic business fields

SLOVENIA

57.6 % of revenue

896 business units

11,407 employees

CROATIA

11.1 % of revenue

221 business units

3,221 employees

SERBIA

20.5 % of revenue

265 business units

4,781 employees

BOSNIA AND HERZEGOVINA

7.0 % of revenue

112 business units

1,998 employees

MONTENEGRO

3.7 % of revenue

90 business units

1,253 employees

Overview by markets

* Macedonia

2 franchise business units Intersport

* The company does not conduct business operations. ** The company is in the liquidation proceedings. *** The company was merged to Poslovni sistem Mercator, d.d., as at July 1, 2014.

MERCATOR GROUP

MERCATOR OPERATIONS SLOVENIA AND CROATIA OTHER OPERATING ACTIVITIES

Poslovni sistem Mercator, d.d., Slovenia Intersport ISI, d.o.o., Slovenia (100.0%)

Mercator - H, d.o.o., Croatia (99.9%) Modiana, d.o.o., Slovenia (100.0%) ***

Mercator IP, d.o.o., Slovenia (100.0%) Mercator - Emba, d.d., Slovenia (100.0%)

M - Energija, d.o.o., Slovenia (100.0%)

MERCATOR REAL ESTATE

MERCATOR OPERATIONS SOUTHEASTERN EUROPE

M - nepremičnine, d.o.o., Slovenia (100.0%) ***

Mercator - S, d.o.o., Serbia (100.0%) Investment Internacional, d.o.o.e.l., Macedonia (100,0 %)*

Mercator - BH, d.o.o., Bosnia and Herzegovina (100.0%)

M - BL, d.o.o., Bosnia and Herzegovina (100.0%)

Mercator - CG, d.o.o., Montenegro (100.0%)

Mercator - B, e.o.o.d., Bulgaria (100.0%)**

Mercator Macedonia, d.o.o.e.l., Macedonia (100,0)*

Group composition as at June 30, 2014

Key information for shareholders

Movement of closing price per MELR share in

the period 1-6 2014, compared to the SBITOP

index

Key information for the shareholders:

30/6/2013 30/6/2014

Index

30/6/2014

30/6/2013

Number of shares entered in the court register 3,765,361 3,765,361 100.0

Number of treasury shares 42,192 42,192 100.0

Market capitalization (in EUR) 425,862,329 312,524,963 73.4

Market price per share (in EUR) 113.10 83.00 73.4

Share book value (in EUR) 200.29 154.06 76.9

Minimum close rate in the period (in EUR) 113.00 66.01 58.4

Maximum close rate in the period (in EUR) 140.05 84.50 60.3

Average close rate in the period (in EUR) 122.98 73.51 59.8

As at June 30, 2014, the share in the company Poslovni sistem Mercator, d.d., held by foreign investors amounted to 76.35 percent, which is three times more than at the end of the second quarter of 2013.

Slovenia CroatiaBiH

Serbia Montenegro BulgariaAlbania

Private label lines development

PRIVATE LABEL SLOVENIA SERBIA CROATIA BOSNIA AND

HERZEGOVINA MONTENEGRO

TOTAL NUMBER

OF PRIVATE LABEL

LINES

12 10 11 7 5

We launched the revised Pika card customer

loyalty system on February 1, 2013, in all

countries we operate in.

The development of private label lines and the year of

the entry in foreign markets of Mercator's operations

with the offer of private labels:

Thank you !

Additional information: http://www.mercatorgroup.si http://seonet.ljse.si/