On Friday, 14th July - General Assembly of Podravka d.d.

At the General Assembly of Podravka, to be held on Friday, 14th July, the shareholders or their proxies will discuss last year’s business results and some changes in the leading bodies of the Committee and in the Supervisory Board of Podravka.

Public debate has taken place following the publication of the official gazette of Podravka, “Dioni-čarski glasnik” (“Shareholders’ Gazette), at the beginning of June, where the decision on the session of the Assembly, the reports on last year’s business results of Podravka and the proposals for the General Assembly of the Managing and Supervisory Boards were printed. In the debate, some sections of the business report were discussed, as well as the proposals submitted by the Management and the Supervisory Board. Since this issue of “Glasnik” mentioned for the first time the loss of about 86 m kuna last year, the public was surprised, because previously, only last year’s profits of the Podravka Group of 21 m kuna had been mentioned. Explanations followed that the losses were the result of bookkeeping entries, and not of business operations and that the entries have tidied up Podravka’s accounts and have facilitated business activities this year and for the years ahead without leaving loose ends.

Public debate has taken place following the publication of the official gazette of Podravka, “Dioničarski glasnik” (“Shareholders’ Gazette), at the beginning of June, where the decision on the session of the Assembly, the reports on last year’s business results of Podravka and the proposals for the General Assembly of the Managing and Supervisory Boards were printed. In the debate, some sections of the business report were discussed, as well as the proposals submitted by the Management and the Supervisory Board. Since this issue of “Glasnik” mentioned for the first time the loss of about 86 m kuna last year, the public was surprised, because previously, only last year’s profits of the Podravka Group of 21 m kuna had been mentioned. Explanations followed that the losses were the result of bookkeeping entries, and not of business operations and that the entries have tidied up Podravka’s accounts and have facilitated business activities this year and for the years ahead without leaving loose ends.

This clarification was accepted by the Association of Shareholders of Podravka d.d., and, although at a meeting it had expressed its dissatisfaction with the work of the former Management, it decided that it would vote for all the proposals of the Management and Supervisory Board at the Assembly. This means that the following will be accepted: the report for the business year 1999, the drawing on reserves to cover the losses of Podravka d.d., payment of dividends to the European Bank for Reconstruction and Development, papers presented to the Management and the Supervisory Board and the election of the new President of the Assembly (Ms. Ksenija Punčikar), the deputy president (Ms. Vesna Želježnjak), and Mr. Marko Ečimović, currently President of the Association of Shareholders of Podravka d.d., as member of the Supervisory Board.

The second Association of “Small” Shareholders, which was established this year in March under the name “Dioničar” (“Shareholder”), is dissatisfied both with last year’s business results and with the bookkeeping entries that resulted in losses for Podravka d.d. Therefore, it stated that it would vote against the Management and Supervisory Board’s proposals. The President of “Dioničar”, Mato Dolenec, said in an informal conversation that he would not change his attitude and that he would insist particularly on changes in the whole Supervisory Board. He told us he would tackle the issue of the (non)payment of dividends to all the shareholders. He also stressed that with this attitude the Association does not intend to provoke a bad situation in Podravka and certainly not to harm its business in any way, but to clear up some things as a matter of principle. Nevertheless, he admitted that, with less than 1% of represented ownership of Podravka, the “Dioničar” Association would not have a decisive influence on the decision of the General Assembly. Dolenec says that he expects a completely different atmosphere at the Special General Assembly which could be held later this year.

Of course, the state funds, PIFs, EBRD and other institutional shareholders, as well as the Association of Shareholders of Podravka d.d., which has already announced how it will vote, will have a decisive influence on the voting results.