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www.lukarijeka.hr Luka Rijeka d.d. New Gateway to EU

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www.lukarijeka.hr

Luka Rijeka d.d.

New Gateway to EU

www.lukarijeka.hr 2

Disclaimer

It is prohibited to copy one part or the entirety of this presentation, to create summaries of it or make an extract from it, to quote from it, present it or discuss it in public in any other manner without previously obtaining written permission from Port of Rijeka j.s.c.

This presentation may contain certain statements pertaining to the future business of Port of Rijeka j.s.c. and the Port of Rijeka Group, which can be recognised by the use of terms such as ˝shall be˝, ˝planned˝, ˝is expected˝, ˝is foreseen˝ etc, i.e. by statements pertaining to strategy, plans or intents.

The aforementioned statements reflect the current position of Port of Rijeka j.s.c. on future events and are subject to certain risks, uncertainties and assumptions. Multiple factors may result in the concrete results, effects or achievements of Port of Rijeka j.s.c. or the Port of Rijeka Group being significantly different from the results, effects or achievements expressed or foreseen in such statements pertaining to the future. All projections contained within this presentation are based on assumptions. These assumptions may or may not prove to be accurate. The real outcome can be influenced by economic changes and other circumstances that cannot be foreseen, and no guarantee is provided that some of the estimates contained within this presentation will actually become a reality.

www.lukarijeka.hr 3

Content

A Introduction

B The Port of Rijeka today

C The development of business – the Port of Rijeka tomorrow

www.lukarijeka.hr 4

Geographical position A

Due to its favourable geographical position, the Port of Rijeka (˝Company˝) allows for the shortest sea connection between the countries of Central and Eastern Europe and overseas countries.

As an integral part of the TEN-T transport network and corridor, the Port of Rijeka is of particular importance for the landlocked countries in the region (Hungary, Austria, Slovakia, Czech Republic, Serbia and Bosnia and Herzegovina) and is in an excellent position to make use of its location.

Source: http://ec.europa.eu/transport/themes/infrastructure/index_en.htm

the Port of Rijeka

lies on the

Mediterranean

TEN-T corridor

the Port of Rijeka

also connects to

the ˝Baltic-

Adriatic˝ corridor˝

www.lukarijeka.hr 5

Geographical position – a competitive advantage of

the Port of Rijeka A

the North Adriatic transport

route:

– possesses great nautical

advantages for ships

arriving from the Suez

Canal >2,000 Nm

– it shortens the travel time

for approximately 5 to 7

days

– decreases transport costs

– decreases transport costs

Source: Port of Rijeka

www.lukarijeka.hr 6

Geographical position – competition A

~1.000 km radius

~500 km radius

The main competitors of the Port of Rijeka are the

ports of the North Adriatic cluster – Koper, Trieste,

Venice, Ravenna, Chioggia and Monfalcone.

The Port of Rijeka divides its gravitational market into:

– Countries within the primary strategic zone:

Croatia, Hungary and Slovakia

– Countries within the secondary strategic zone:

Austria, Czech Republic, Serbia, Poland and

Bosnia and Herzegovina

the North Sea cluster (~284 million t)

the Baltic cluster (~44 million t)

the North Adriatic cluster (~42 million t)

the Black Sea cluster (~40 million t)

Marginal area clusters (~26 million t)

Upon Croatia’s

accession to the EU in

2013, and in light of

the fact that two

corridors of the TENT-

T network pass

through Croatia, the

Port of Rijeka now has

the opportunity to

harness the full

potential of its position.

Note: approximate cargo traffic for 2013; includes bulk cargo and

general cargo, container cargo and RO-RO cargo excluded;

Source: European Sea Ports Organisation.

www.lukarijeka.hr 7

Republic of Croatia – transport strategy A

The Port of Rijeka is located on a strategic EU transport route (the TEN-T Mediterranean corridor)

and connects on to the ˝Baltic-Adriatic˝ route.

EU and Croatia strategically and operatively support investment in port and railroad infrastructure

that increases the transport capacity of this route and remove bottlenecks situated on it. EU

structural and cohesion funds will serve as a significant support to the investment cycles of both the

port and the railroad sector.

The liberalisation of the market of railroad operators, together with the entry of private capital into

port operations increases the efficiency of both, while also improving the competitiveness of the

Rijeka transport route.

In the Strategy for Managing State Property for the period between 2013 and 2017, which was

adopted by the Croatian Parliament in 2013, Port of Rijeka j.s.c. is mentioned as a subject of

developmental importance for which restructuring, capital increase and full, i.e. partial privatisation

is planned. The Plan for Managing State Property for 2015 mentions Port of Rijeka j.s.c. as a

company of particular interest for which share capital increase is planned during 2015.

www.lukarijeka.hr 8

Republic of Croatia–Development of the Rijeka transport route A

Recent improvements and investments in the electrification of Croatia’s railroad network represent

very positive steps forward in relation to the main activities of Port of Rijeka j.s.c.

– The railroad network between Rijeka and the Hungarian border (passing through Zagreb and

Koprivnica) has been completely electrified (25kV, 50Hz), which directly cuts down on transport

costs and strengthens transport connections with one of the key countries of the gravitational

area.

– Further investments in electrification are expected – as of yet, 980 out of 2,605 kilometres have

been completed.

The key parties in the system of transport infrastructure relevant to the transport of cargo and port

activities are ports and relevant railroad operators.

The market of railroad cargo transport is currently undergoing a process of liberalisation (of which

the effects are not yet visible), which creates competition, increases flexibility and decreases

logistical expenses for the transport route.

www.lukarijeka.hr 9

7.277

6.280 6.450

4.535 4.347

3.705

2.523

2.546 2.645

3.557

4.841

5.624 5.207

4.503

3.602 4.140

3.164 3.224 4.047

3.473 4.098

5.370 5.731

6.619 7.456

9.151

11.036

13.123

10.476

14.128 15.159

15.892

-

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

The Port of Rijeka The Port of Koper

Comparison with competition A

The Port of Koper is the most significant competitor of the Port of Rijeka:

– the turbulences that have affected the Port of Rijeka have not affected the Port of Koper, thus

creating a gap in development

– the Port of Koper has recorded a particularly significant increase in business since the accession

of Slovenia to the EU in 2004

Cargo transport

(excluding liquid

cargo; including

container cargo)

(in thousands of

tonnes)

War of Independence Global economic crisis

The large ship operator

Croatia Line (a key partner)

ceases to operate

Note: The growth of the Port of Rijeka in 2014 was 14.9% in relation to 2014, while the growth rate of the Port of Koper for the same period was 4.8% (excluding liquid cargo)

Source: Statistics of the Port of Rijeka and the Port of Koper

www.lukarijeka.hr 10

The historical growth of the traffic of dry cargo at the Port of Rijeka

and the Port of Koper A

Note: The historical growth of the traffic of dry cargo at the Port of Rijeka and the Port of Koper (excluding liquid cargo)

Source: Statistics of the Port of Rijeka and the Port of Koper

www.lukarijeka.hr 11

The Port of Rijeka today – Basic information B

The Port of Rijeka, pursuant to a concession contract valid by 2042, is the largest port operator for the

transhipment of dry cargo in Croatia, with a total cargo amount of over 4,1 million tonnes in 2014

– The Port of Rijeka specialises in the dispatchment and transhipment of dry cargo, with its primary activities

including loading, unloading, storing and transporting general cargo, wood, bulk cargo, cattle, tropical fruits

and other fruits, grains and oilseed crops.

– With a share of 49%, the Port of Rijeka also manages Jadranska vrata d.d. ("AGCT", Adriatic Gate Container

Terminal), a terminal for loading and unloading containers with a concession contract valid by 2041.

as an integral part of the TEN-T transport network and corridor, the Port of Rijeka is of great transport-related importance for the landlocked countries in the region (Hungary, Austria, Slovakia, Czech Republic, Serbia and Bosnia and Herzegovina, etc.)

Note: *through multiple state institutions; **small shareholders with an individual share of less than 1% ***on 21 May 2015

Ownership structure Board and Supervision Committee

Linda Sciucca Member of the Board

Nenad Janjić Member of the Board

Bo

ard

Vedran Devčić President of the Board

Loris Rak Vice president

Su

pe

rvis

ion

Co

mm

ite

Nikola Mendrila President

+ 3 members

Market

capitalization

HRK 269 mil.

www.lukarijeka.hr 12

The Port of Rijeka today – Organisational structure B

COMPANY

BOARD

DEPARTMENT FOR

QUALITY MANAGEMENT

CONTROLLING

DEPARTMENT

BOARD OFFICE DEPARTMENT FOR

INTERNAL CONTROL

Services

berthing and

unberthing cargo

insurance

maintenance

port and transport

workers and

technical operators

Terminals

Rijeka Silos

Bršica Bakar

Škrljevo

AFFILIATE SUBSIDIARIES

Jadranska vrata d.d.

(Adriatic Gate

Container Terminal)

(49%)

Luka - Prijevoz d.o.o.

(100%)

Stanovi d.o.o.

(100%)

ICT DEPARTMENT PROCUREMENT

DEPARTMENT

SECTOR FOR MANAGING HUMAN

RESOURCES

SECTOR FOR DEVELOPING AND

MANAGING PROPERTY

SECTOR FOR FINANCES AND ACCOUNTING

SECTOR FOR SALES AND MARKETING

SECTOR FOR OPERATIONS

www.lukarijeka.hr 13

The Port of Rijeka today – geographical position of the port basins B

Image of the port basins operated by the Port of Rijeka:

The Škrljevo Background Terminal is located 7.5 km from the Rijeka Basin (Brajdica Container Terminal) and 3 km from the Bakar Basin.

www.lukarijeka.hr 14

The Port of Rijeka today - terminals B

Annual capacity: 600,000 t

Sea depth: 8 m

Key activities / characteristics:

A multi-purpose terminal for the

accommodation and shipping of

live cattle and the transhipment of

wood, general and bulk cargo

A storage facility with an area of

510,383 m² is located in the

immediate vicinity

Bakar (bulk cargo)

Annual capacity: 100,000 t

Sea depth: 10 m

Key activities /

characteristics:

Handling tropical fruit and

frozen meat

Specialised refrigeration

chambers for various types

of perishable goods

Silos (grains)

Annual capacity: 1,000,000 t

Sea depth: 14 m

Key activities /

characteristics:

The transhipment and

storage of grains and

oilseed crops

The silos are equipped to

dry grains, clean them with

separators and disinfect

them

Rijeka (general)

Annual capacity: 500,000 t

Sea depth: 10 m

Key activities /

characteristics:

Handling cut wood

The favourable climate

allows the wood to dry

naturally

AGCT

Annual capacity: 4,000,000 t

Sea depth: 18 m

Key activities / characteristics:

Specialises in handling iron

ores, coal and other bulk

cargo

Is able to accommodate

Panamax and Capesize ship

categories

Rijeka (wood)

Annual capacity: 600,000 TEU

Sea depth: 14.5 m

Key activities /

characteristics:

Terminal for loading and

unloading containers

Concession by 2041. (49%

share in the subsidiary

company AGCT)

Rijeka (cooler)

Covered warehouses:28,160 m²

Open space: 130,000 m²

Free space: 243,000 m²

Key activities / characteristics:

The possibility of storing cargo

(customs free zone)

Multi-modal background

terminal –direct access to the

motorway and railroad

Bršica

Covered warehouses:28,160 m²

Open space: 130,000 m²

Free space: 243,000 m²

Key activities / characteristics:

The possibility of storing cargo

(customs free zone)

Multi-modal background

terminal –direct access to the

motorway and railroad

Škrljevo

Generalni Žitarice

Frigo

Generalni

Generalni AGCT

Drvo Drvo

Generalni

Drvo

Bakar Bršica Škrljevo

www.lukarijeka.hr 15

The Port of Rijeka today - terminals (continuation) B

Decreasing the area under concession

Adriatic Gate Container Terminal

Port area under the concession of the Port of Rijeka

Border of the port areas of Rijeka and Sušak

RGP –Port/City interface –repurposing and

construction

Zagreb Dock – a new container terminal

www.lukarijeka.hr 16

Terminal for general cargo (Rijeka) B

Offers the possibility of handling and storing various types of general cargo, such as metal products

and constructions, granite blocks, paper etc. In addition, it is connected to the hinterland via

railroad. The terminal also specialises in handling lengths over 60 m for overseas destinations.

Sea depth: 12 m;

Annual capacity: 2.000.000 t;

11 berths at multiple operational docks;

Mobile cranes with a capacity between 40 and 63 t;

Other port machinery;

Adequate storage facilities located in the vicinity of

the dock;

Two new Liebherr cranes:

– Installed in May 2013.;

– Each of them with a capacity of 84 t

Gravitational area: Croatia, Hungary, Slovakia, Czech Republic, Austria, Serbia and Bosnia and

Herzegovina

Destination / outbound area: Turkey, South Africa, Egypt, Lebanon, Algeria, Colombia

www.lukarijeka.hr 17

Terminal for grains (silos) B

Terminal for the transhipment and storage of grains and oilseed crops, with a railroad connection

The silos can be used to dry grains, clean them with a separator, disinfect them and weigh them

during all phases of operation

Sea depth: 14 m;

Annual capacity: 1,000,000 t;

One-time storage capacity: 56,000 t;

The equipment enables the following loading / unloading

operations:

– Ship–Silo; Silo –Ship;

– Ship–Silo –Wagon (truck);

– Wagon (truck) –Silo –Ship.

Gravitational area: Croatia, Hungary, Italy

Destination / shipment area: Brazil, India

www.lukarijeka.hr 18

Wood terminal B

Possesses a climate favourable to cut wood that allows it to dry naturally

Sea depth: 10 m;

Annual capacity: 500,000 t;

One-time storage : 35,000 -50,000 m³ (depending on the type of wood);

Preparing cut wood for:

– Sorting;

– Impregnation;

– Marking;

– Packaging and binding.

Gravitational area: Croatia, Austria, Bosnia and Herzegovina

Destination / outbound area: Egypt, Libya, Qatar, Saudi Arabia, Algeria, China, Kuwait

www.lukarijeka.hr 19

Frigo Terminal B

Frigo Terminal is a business unit for the transhipment of

frozen cargo, and is also a part of the terminal for general

cargo in Rijeka

Sea depth: 10 m;

Annual capacity: 100,000 t;

Total area of the conditioned warehouse: 8,000 m²;

One-time storage capacity: 3,175 t;

Cold storage with refrigeration chambers for tropical

fruit (bananas and citrus fruits), frozen meat and fish.

Gravitational area: Croatia, Serbia, Slovenia

Destination / outbound area: Ecuador

www.lukarijeka.hr 20

Terminal for bulk cargo (Bakar) B

Terminal for the handling and storage of iron ores, coal and other bulk cargo.

Accommodates Panamax and Capesize ships.

Is connected to the hinterland via railroad

Sea depth: 18 m;

Annual capacity: 4,000,000 t;

One-time storage capacity: – For fine iron ore 300,000 t, or

– For iron ore pellets 250,000 t, or

– For coal 120,000 t.

Key terminal equipment:

– Portal harbour crane with grab;

– Continued ship unloader ;

– Continued ship loader;

– Mobile storage bridge;

– Transport tracks

Gravitational area: Hungary, Austria

Destination / outbound area:

USA, Ukraine, Brazil, South Africa,

Colombia

www.lukarijeka.hr 21

Terminal Bršica B

Bršica Terminal is a multi-purpose terminal for the accommodation and transhipment of live cattle

and the transhipment of wood, general and bulk cargo.

Sea depth: 8m;

Annual capacity: 600,000 t;

Accommodation capacity: approx. 1,000 cattle heads;

Continued veterinary supervision;

The storage facility Štalije, under the concession of two Croatian

wood exporters via Bršica terminal, is located in the immediate

vicinity:

– Total storage area: 510,383 m²;

– Covered area: 35,500 m².

Gravitational area: Croatia, Hungary

Destination / outbound area: Lebanon, Egypt

www.lukarijeka.hr 22

Škrljevo Terminal - today B

Škrljevo Background Terminal – a multi-purpose logistical centre intended for the handling and

storage of containers and general and bulk cargo

The terminal is under the ownership of the Port of Rijeka and has the status of a customs free zone

Total area: 468,977 m²;

Open space: approx. 130,000 m²;

Covered warehouses: 28,160 m²;

Area free for development: approx. 245,000 m²;

Added value services for goods;

Direct connections with railroad and motorway;

Railroad infrastructure: 6 railroad gauges with a

length of 3,500 m.

Gravitational area: Croatia, Austria

Destination / outbound area: Egypt, Qatar, Saudi Arabia, Brazil

www.lukarijeka.hr 23

Adriatic Gate Container Terminal –AGCT B

Investment cycle completed:

Expansion of the dock by 326 m;

BIP station for the phytosanitary inspection of

goods;

Installed terminal equipment:

– 2 Panamax container cranes;

– 2 post Panamax container cranes;

– 6 RTG (rubber tyre gantry cranes); – 2 RMG (rail mounted gantry cranes).

Annual capacity: 600,000 TEU

Dock 1: berth length 300 m;

Sea depth - 11.7 m;

Dock 2: berth length 326 m;

Sea depth - 14.5 m.

Ownership structure of AGCT:

51% -ICTS Inc., (global operator of container terminals with headquarters in Manila, the Philippines);

49% - Port of Rijeka j.s.c.

www.lukarijeka.hr 24

2.374 2.113 2.305 2.233 2.268 2.355 2.159

3.378

2.8732.000 2.024 1.903

948 1.611

276

221

254 245 341

299

371

-

1.000

2.000

3.000

4.000

5.000

6.000

7.000

Generalni Rasuti Drvo

Physical indicators of business B

After the breakout of the global economic crisis in 2008, the amount of bulk cargo as a category

has been decreasing, while the amount of general cargo has remained stable.

The volume of container traffic generated by AGCT (part of the category of general cargo has been

yielding a higher profit margin in comparison with other types of cargo, and it is the least

susceptible to market turbulences.

Total cargo traffic in

thousands of tonnes

6.027

5.207

4.560 4.503 4.511

3.602

Only AGCT in

thousands of

tonnes

1.457 1.169 1.349 1.311 1.276 1.367

Note: *AGCT included

4.140

1.236

YoY +15%

www.lukarijeka.hr 25

Profit and loss account B

Source: Revised and consolidated financial reports of the Company for 2012, 2013 and 2014 and the unrevised and consolidated financial reports of the Company for the first quarter of 2015.

2012 2013 2014 I-III 2014 I-III 2015

Revenue from sales 169.260 146.201 167.351 41.652 42.616

Other income 19.108 33.976 16.945 4.839 3.473

188.368 180.177 184.296 46.491 46.088

Materials, services and consumables used (58.705) (59.346) (67.398) (15.894) (15.773)

Personnel expenses (83.845) (83.329) (81.228) (18.422) (18.421)

Depreciation and amortisation (12.239) (10.493) (10.127) (2.542) (2.683)

Other expenses (32.299) (24.026) (23.770) (5.344) (6.925)

(187.088) (177.194) (182.523) (42.202) (43.802)

Finance income 5.296 5.853 2.041 243 556

Finance costs (7.276) (9.528) (8.593) (595) (1.064)

Net finance income / (costs) (1.980) (3.675) (6.552) (352) (509)

Share of profit / (loss) of equity-accounted investees 923 1.913 (1.281) - -

Profit before tax 223 1.221 (6.060) 3.936 1.777

Income tax (expense)/benefit (826) 217 272 - -

Profit/(loss) for the year (603) 1.438 (5.788) 3.936 1.777

Revalouation of AFS financial assets (net of tax) 55 - 359 - (359)

Revalouation of land (net of tax) - - 18.186 - -

Other comprehensive income 55 - 18.545 - (359)

Total comprehensive income / (loss) (548) 1.438 12.757 3.936 1.418

Earnings / (loss) per share (in HRK) (0,10) 0,24 (0,97) 0,66 0,24

www.lukarijeka.hr 26

Net debt B

The Company’s net debt grew in 2013 due to the increase in the long-term loan (Liebherr

cranes) while, in 2014, the Company had to enter into additional short-term debt in order to

settle the foreclosure by the Tax Administration upon losing the administrative procedure that

the Company contested for years. A decrease in deposits in 2014 due to the cancellation of a

part of the fixed-term assets intended for the preparation of the Škrljevo project also affected

the increase of the net debt.

*Money in the treasury, money on giro account, shares in financial funds and all other forms of highly liquid financial

assets

Source: Revised and consolidated financial reports of the Company for 2012, 2013 and 2014 and the unrevised and

consolidated financial reports of the Company for the first quarter of 2015.

Net debt of the Port of Rijeka Group (in thousands of HRK)

(in '000 HRK)

31.12.2012 31.12.2013 31.12.2014 31.03.2014 31.03.2015

Short-term loans 21.128 37.639 50.127 41.523 48.992

+ Long-term loans 59.113 61.553 48.281 43.013 40.584

+ Finance lease liabilities 26.018 24.867 23.455 20.429 14.819

- Short-term bank deposits 47.540 34.000 19.000 30.988 17.369

- Cash and cash equivalents* 2.468 2.414 2.623 2.146 1.644

= NET DEBT 56.251 87.645 100.240 71.831 85.382

www.lukarijeka.hr 27

Ratios B

Source: Revised and consolidated financial reports of the Company for 2012, 2013 and 2014 and the unrevised and consolidated financial reports of the Company for the first quarter of 2015.

31.12.2012 31.12.2013 31.12.2014

Liquidity ratios

Cash ratio 0,49 0,32 0,22

Quick ratio 0,88 0,64 0,61

Current ratio 0,89 0,66 0,62

Debt ratios

Total debt / Total assets 0,18 0,21 0,17

Equity /Total assets 0,63 0,63 0,66

Net debt / EBITDA n.d. 5,34 7,89

Shor-term loans / EBITDA 2,16 2,99 4,31

EBITDA interest coverage 2,21 2,87 2,58

EBIT interest coverage 0,21 0,64 0,38

Activity ratios

Total assets turnover 0,29 0,25 0,28

Current assets turnover 1,68 1,78 2,47

Trade receivables turnover n.d. 4,89 5,34

Inventory turnover 93,23 105,41 136,67

Trade payables turnover n.d. 8,36 6,82

Profitability ratios

ROE -0,16% 0,39% -1,52%

ROA -0,10% 0,25% -0,98%

Profitability margins

EBITDA margin 7,99% 9,22% 7,11%

EBIT margin 0,76% 2,04% 1,06%

Net profit margin -0,36% 0,98% -3,46%

www.lukarijeka.hr 28

Conclusion – the Port of Rijeka today B

The Port of Rijeka today:

Largely state-owned (83% share), other shareholders with shares below 2%;

Concession contract concluded with the Port Management of Rijeka expires in 2042;

Port of Rijeka holds a 49% share in the container terminal AGCT.

Results in 2014:

Prihodi od prodaje – HRK 167 mil.;

EBITDA – HRK 11,9 mil. (7,1% EBITDA marža);

Neto dug – HRK 100 mil.;

Promet – 4,1 mil. t (uključujući AGCT).

Annual capacity by terminal and type of cargo:

Rijeka (general): 2 million t;

Rijeka (wood): 0,5 million t;

Rijeka (refrigeration): 0,1 million t;

Silos (grains): 1 million t;

Bakar (bulk cargo): 4 million t;

Bršica (cattle, wood, general, bulk cargo ): 0,6 million t

AGCT (containers): 0,6 million TEU

www.lukarijeka.hr 29

Key growth generators C

Value initiators

External

Potential of the gravitational area of Central and Eastern Europe

Historical recognisability of the brand on the gravitational market

Great potential and continued growth of the destination/outbound market of

the Far/Central/Middle East

Advantage of the shortest route between the Far/Central/Middle East

and the gravitational area

Accession to the EU capitalising on previous opportunities and providing the Port of Rijeka with the chance to

fairly compete

Being part of the vital TEN-T transport route (Mediterranean

corridor) and the possibility for using EU grant schemes (CEF)

Liberalisation of railroad transport that removes cost-related obstacles and

increases the efficiency of the supply chain

Approximating the maximum capacity of competing ports (port and railroad

capacity)

Construction of a new container terminal in Rijeka and the significant

increase of container traffic

The developmental potential of the Bakar port basin (harmonised spatial plans, excellent maritime conditions,

etc.)

Internal

Holding concession up to 2042 and ownership of the Škrljevo Background

Terminal

Defined marketing and sales plan based on key customers

Development of added value services Catching up with the prices of

competitors

Improving and developing operational efficiency (optimisation of processes)

Introducing a motivation system for stimulating staff

Improving the quality of systems for managing normatives and rates

Developing a digitalised database system for information on markets,

customers, competition etc. and introducing CRM

Improving business intelligence, planning and controlling systems

Possibility of using tax incentives due to the high level of investment

www.lukarijeka.hr 30

Škrljevo Terminal – the greatest capital investment C

Total area: 468,977 m2 28,160 m2 of covered storage space

approx. 130,000 m2 of open space

free zone status

Škrljevo Terminal today

Total area: 468,977 m2 53,818 m2 of covered storage space (of which 25,658 m2 is

new)

36,016 m2 of new canopies

13,915 m2 of new container depots with a one-time capacity

of 1.950 TEU

Open warehouse plateaus, new railroad gauges, service zone

New mobile mechanisation

Possible future investments: Construction of a new cold storage with an area of approx.

36,000 m2

9.061m2 of new canopies

A second container depot

Škrljevo Terminal after 2017

An amount of 322 million HRK (~43 million EUR) is planned to be invested in Škrljevo Background

Terminal.

www.lukarijeka.hr 31

Škrljevo Terminal – the greatest capital investment (continuation) C

Škrljevo Terminal is a key strategic project of the Port of Rijeka j.s.c. :

Land and facilities are 100% owned by Port of Rijeka j.s.c.

Effective building permits have been obtained.

construction can begin immediately upon the closure of financing (SPO).

Relieving pressure from the limited dock capacities:

Alternative storage capacities after the loss of the area where the Zagreb Dock and the area of

Delta-Porto Baroš are being constructed today, for which urbanisation and the construction of a

marina or mega yachts are planned as part of the ˝Rijeka Gateway˝ project.

Investment structure :

With the investment of 322 million HRK in the Škrljevo Terminal project, the existing covered

storage space will be expanded by an additional 25,658 m2, 36,016 m2 of new canopies and a new

container depot with an area of 13.915 m2 will be constructed, new road and railroad infrastructure

will be necessary together with the needed new machinery, while space will also be left free for

further construction

The project’s function is to bring the Company’s long-term goals to fruition by:

Enabling the growth of more profitable general cargo and container traffic

Returning cargo traffic to the levels reached before the war (approx 7 million t in the mid 1980s)

and achieving a profitability comparable to that of competing ports in the region (~30% EBITDA

margin).

www.lukarijeka.hr 32

Škrljevo Terminal – the greatest capital investment (continuation) C

Investment structure (in millions of HRK)

65

103

45

38

322

24

Plateaus

Civil engineering

Škrljevo total

Project development

Railroad construction

10

15

Road construction

Energetics

Hydrotechnology

16

Environment

4

Mechanisation

www.lukarijeka.hr 33

Contact

Company board

Phone: + 385 51 496 533

Fax: + 385 51 496 008

E-mail: [email protected]

www.lukarijeka.hr

www.lukarijeka.hr