Adris grupa d d : group's General Meeting held press realease 30062021

Press release

for immediate release

ADRIS GROUP'S GENERAL MEETING HELD

Remenar: Adris' business system retained stability which is based on a diversified portfolio with a substantial potential for further growth and improvement in all three businesses

Rovinj, 30 June 2021 - With the General Meeting of Adris Group, which took place today in Rovinj, the majority of general meetings of the Group's companies have been held. During the day, Maistra, HUP Zagreb and Cromaris held general meetings. The General Meeting of Croatia osiguranje was held on 18 June while the General Meeting of Grand Hotel Imperial d.d. will be held on 1 July 2021.

Explaining last year's business results, the company's management reminded the present shareholders that the coronavirus pandemic, which started in early 2020, resulted in a global economic crisis, the largest since World War II. Supply chains were interrupted, movement of people across borders was limited or prohibited entirely, and the uncertainty also had an impact on reducing economic optimism. Alongside the economic crisis, Croatia was also hit by two devastating earthquakes in 2020 which resulted in a decline of GDP of more than 8%, and a significant increase in public debt.

Even in such circumstances, Adris Management Board Chairman Marko Remenar pointed out, Adris' business system retained stability which is based on a diversified portfolio with a substantial potential for further growth and improvement in all three businesses.

Remenar pointed out that Adris Group's consolidated EBITDA amounted to nearly HRK 600m, which is 40% lower compared to Adris' best years, "but this result allowed us to make investments even in 2020, to retain jobs and a stable net cash position of the Group, as well as the restitution of the dividend policy. In order words, this result enabled the situation needed to pay out dividend which, in line with growing results, will be part of this Group's business policy in upcoming years as well."

After the representatives of the management boards of Adris' companies - Davor Tomaskovic (Croatia osiguranje), Tomislav Popovic (Maistra) and Ivan Leko (Cromaris) - presented the results achieved in insurance, tourism and mariculture to the shareholders, Remenar once again pointed out that in 2020 Group-wide business activities were focused on increasing the efficiency necessary to achieve business results, focusing on digitalisation and innovation "with the aim of increasing comparative advantage in all our businesses and continuing intensive preparations for strategically relevant investments. At the same time the Group's debt remains extremely low, because we ended this crisis year below 1x EBITDA. On the other hand, that is the precondition for beginning the realization of our ambitious development plan. Group-wide operating preconditions have been established; for example, Group-level managing of procurement processes has been established, real estate management has been centralized, the investment preparation phase and the decision-making regarding investments has been moved to the next season, and we also digitalized the process of monitoring the preparation and implementation of investments. In short, both operatively and financially, Adris is ready for the next step."

A HRK 12.5 dividend per share from retained profits earned in the period from 2005 to 2011

In line with the published agenda, after the General Meeting adopted the financial reports for 2020 it also adopted the resolution on the allocation of 2020 profits, deciding that last year's net profits, amounting to HRK 3.4m, should be allocated to retained profits.

Shareholders at the General Meeting then adopted the resolutions on giving discharge to members of the Management Board and Supervisory Boards, as well as the resolution on replacing the Resolution on the Allocation of 2019 Profit and the Resolution on Changes to Reserves on Account of a Merger with a Dependent Company with a new resolution.

At the General Meeting it was also decided that the dividend, amounting to HRK 12.5 per share, earned by the Company in the period from 2005 to 2011, would be paid out on 30 July to owners of shares based on the statement from the Central Depository and Clearing Company on 14 July 2021.

Finally, the shareholders adopted the Resolution on Approving the Report on the Income of Members of the Management Board and Members of the Supervisory Board in the Business Year 2020, as well as the Resolution on Appointing the Company's Auditor for Business Year 2021.

Shareholder questions

At the General Meeting, shareholders asked questions about the stake in Sava Re, the decline of Croatia osiguranje's premiums and CO's dividend payment to the parent, Cromaris' net profit margin and the building of the fish food factory, the inclusion on the London Stock Exchange…

Frame

In 2020 Adris Group earned total revenues amounting to HRK 4.7bn, which is 18% less compared to 2019. Revenues from sales of goods and services amounted to HRK 4.3bn and were 20% lower compared to the previous year. Consolidated profits before interest, tax and depreciation (EBITDA) amounted to HRK 586m, while net profits amounted to HRK 45m. While it invested nearly HRK 500m in 2020, the Group retained the financial potential necessary for a new investment and development cycle.

More information about business results is available here.