Dear investors, welcome on our conference call. Yesterday we reported the numbers for the third quarter of 2025.

Basically, we have one positive and one negative things which we would like to present to you today. Positive thing is that all the cost initiative which we did, basically during the summer, works, and due to huge cost savings, we were able to deliver the basically flat EBITDA compared to prior year.

For us was very important that we stop drops in EBITDA which we reported in the quarter one and quarter two, and we were able to report EBITDA on the level of 725 million of Czech koruna. In the end of September beginning in the end of August beginning of September, we were also quite positive with the recent development of the revenues.

However, the rest of the September, October, and now also the November sales are showing us that the negative trend and consumption sentiment, especially in Czech Republic, is still continuing, and that's why we have to review our full year expectation. Our original expectation at the end of the summer was that we will be able to deliver at least flat result compared to prior year, this means basically almost 1.9 billion of Czech korunas.

Currently, we see the EBITDA result for the full year on the level of 1.75 billion of Czech korunas. The main reasons of such decrease are basically three.

First one is, as I already told, negative sentiment especially in the Czech retail market. The second one is the ongoing downturn in our export sales of the beer, especially to Central and Eastern European customers.

Last fact was that starting from the October, one of the major retail players in Adriatic decided to discontinue sales of the all branded products and turn solely to the private label products, and this also negatively affected our outlook for the rest of the year. EBITDA of 1.75 billion of Czech korunas represent decrease compared to prior year, however, should not hurt the financial stability of the group.

At the moment, we expect that the overall leverage at the year end will represent approximately three times EBITDA, and we should not have any major financial problems. At the moment, we are in the process of confirming budgets for 2026, and I believe that in the half of February, we will be able to present you a bit more optimistic forecasts for next year.

Now I handle my word to my colleagues. Thank you.

Dear investors, here is Daniel speaking. Let me comment key moments of top season in Czech and Slovak soft drink market.

We missed our goals, and we have to recalculate our year targets. Key factors are known: double-digit drop of Slovak market due to sugar tax implementation, worst weather in last decade, and additional surprise, unexpectable negative consumer sentiment.

Stop of complaining. Successful launch of Targa Florio retail formats, 154% compared to last year, perfect Rauch replacement, and still small but dynamically growing Prager Kombucha.

Cost of material and services are under control. We realized cost-saving program, including reduction of 4% FTE positions.

Q4 sales development shows that market recovery in retail will be difficult. Positive trend we see in HoReCa segment.

I'm quite optimistic in next year prediction: material and energy prices are stable, and we expect soft drink market recovery. Thank you for your attention, and drink Kofola.

Daniel.

Hello everyone, this is Marián Šefčovič, CEO of Adriatic, speaking. The Adriatic region reported 8% decline in revenues year over year during the third quarter of '25, primarily driven by broad-based demand weakness.

These revenue headwind result from lower consumer spending, leading the sales volume decreasing of 12% in Slovenia and 6% in Croatia, as well as a significant contraction export markets, which saw a notable 6% decrease in demand across ex-YUGO markets. During this quarter, in August, we recorded a significant decrease in demand and consumption, largely driven by rainy weather and absence of prolonged tourism in the Adriatic region.

As a results, our key markets delivered double-digit revenue decrease year over year for that month. At the same time, we successfully launched Prager's Kombucha on the Slovenian market, and we received one of the most prestige design awards in the world, Red Dot, for the redesign of Oraketa.

Before the school year, we delighted the children of our employees with school supplies. We held another successful prize draw for Radenska; we gave away a mobile home.

In September, shared the new intranet Radenska Adriatic with employees, which will serve as the central tool for information, collaboration, access to the internal content in the future. Thank you, Marián.

Dear investors, this is Martin Rosypal speaking, Finance Director of the beer segment. I'm pleased to provide you with a brief update on our performance for the third quarter of 2025.

During the summer season, the overall consumption in the Czech beer market decreased. However, domestic revenues were slightly above last year.

We continued to invest in our brands, our new products in the fast-growing non-alcoholic flavored beer segment performed very well and contributed to our performance. On the export side, revenues continued to decline, mainly in Central and Eastern Europe, as we continue to prioritize margin improvement and scale back lower-value private label businesses.

Taken Czech and export beer markets together, these dynamics led to an overall 9% decrease in revenues in Q3. Zubr celebrated a major victory this year: the lager Zubr Gradus 12 won first place in the Czech Beer 2025 tasting competition in the main category of pale lagers.

The success confirmed that the brand's modern energy is built on strong foundations of integrity and craftsmanship. Although the short-term results are not satisfying, we remained committed to our transformation strategy.

Our focus is on building a stronger, more profitable brand-driven business that will deliver sustainable growth in the long run. Thank you for your continued support and attention.

Wishing you a successful day ahead.

Good morning, can you hear me?

Yes, we can. Good morning, Peter.

Good morning. Thank you for taking my questions.

I would have three questions. First, if you can elaborate a little bit more on what do you see in the Czech market, whether you see, for example, more promotions or price reductions by your competitors, KMV and others, or whether you see, for example, move to the private label more.

Second question would be prices of sugar and sweeteners for 2026, if you can share the result of your purchases for the next year. Third, with three times projected leverage for the year end, what influence it would have on your dividend policy?

You didn't mention or didn't repeat the dividend policy in the slides to Q3, if you can talk about the dividend policy, how it looks. Thank you.

Thank you for your question. Let's start with the easiest one, which is sugar.

Basically for 2026, we expect that the sugar price will increase by some 1% or 2%, nothing major, basically it should be very stable compared to 2025. In terms of Czech market, actually what we see is that all the competitors are decreasing the prices.

That's very natural because also the material prices were decreasing during 2025, and the market simply works, everyone was able to decrease the prices, our competitors did, we did as well. Some price decrease will continue also in the beginning of 2026, that's more than sure at the moment.

I think there is not a major shift to private labels. What we see is rather that people are spending less on the food and beverage category in retail.

That's something basically what we see in all the market researches which we have available, and it's also very visible on the market. Basically, you can see that, for example, during the summer, you was able to buy a bottle of the beer for less than 10 Czech korunas, which is the price which was not basically available on the market for a very long time.

The discounts are very deep in all the segments, and the customers are not buying so much goods as we expected them to buy. What we see is that people are spending more because all the macroeconomic indicators are showing that people, they basically have more disposable income, that the macroeconomic situation is improving, and so on and so on, but consumers were spending the money rather for services in 2025.

We see huge increase of the travel agencies, for example, in 2025. On the other hand, the sector of the hotels on the Czech markets during the summer was reporting some 20% decrease in the revenues, most probably people simply left for the holidays abroad, they did not spend the money here in Czech Republic.

We also see that the other categories of services are improving very significantly in 2025. We believe that now in the last quarter, we should find the bottom of this trend, and from 2026, we should start with some moderate grow to improve the position again.

In terms of the leverage and dividends, at the moment, I would say that if the results will be comparable with prior year result, I would also expect comparable dividend with prior year dividend. Still, what we see is that we believe that the dividend yield should be somewhere between let's say 4% and 5% of the share price.

Let's see the situation in the second quarter when we will be deciding for the exact dividend, but at the moment, I would say that if the result will be comparable with prior year, also the dividend will be comparable with prior year.

Thank you. Maybe one more question regarding the beer segment.

What cost development you see there in their other raw materials?

The cost development is very similar to the development in non-alcoholic beverages, there are no major cost shocks or whatsoever. In the beer segment, we did not realized so much cost cuts and initiative.

We are still continue in investing into the market, basically we changed the branding of Zubr and Holba. Next year, Litovel is coming, and we investing heavily into the market as it was in our strategy, we did not realize much cost cuts in this segment.

We believe that this investments should return in some one or three-year period, definitely.

Thank you.

Good morning, everyone. I would like to hear if you correctly hear me.

Yes, we can.

Thank you very much. I would have a question related to new product launches compared to investments.

Are you planning few more launches next year or keep it similar to the pace of this year? What about the export or respectively launching the beer products in Slovakian markets?

If you could elaborate more on the product line. Thank you.

Yeah.

Of course, we are planning quite a significant launches in 2026. This is part of our strategy to support the grow of the consumption again.

Basically, we would like to invest in the categories where we are not so successful at the moment. One category from all of them are, for example, functional waters, which are becoming very popular on the Czech market, especially in the on-the-go segment.

This is the category where we are not the strong player, we would like to invest into this category definitely a lot. We should also improve our portfolio also in the cola drink and CSDs in general, which is still one of the biggest categories which we have.

In terms of the beer segment and export for Slovakia, still we have in our plan to start proper export of our beers to Slovakia in next year, but I will elaborate maybe more on this in 2026 expectation later next year.

Good morning. If you can more elaborate your information about key customer in Adriatic who probably reduced their demand for your products?

Is the customer from Slovenia, or will you managed to replace this drop in the next year? Thank you.

This is customer which represents approximately 8% of our retail revenues. It's one of the international retailers which is present also in Slovenia.

He basically decides to delist all the branded products, not only Radenska, but also branded products in categories like cheese, chocolate, basically all the categories are now without branded products in the stores, and they are selling only their private labels. In some long term or next year for sure, people will go and buy Radenska in other stores, but very short term, in the rest of the year, people who are used to shop in this specific retailer, they will shop there, and that's why we expect that in the rest of the year, there will be drop in our revenues in Adriatic in retail segment.

From 2026, we believe that customers will return for their favorite brands, not only Radenska, but also other brands, to other retail stores, and our revenues for 2026 should not be hurt significantly. Basically, we do not expect that we lost 8% of our revenues also in 2026.

In 2026, I think that our retail revenues should not be affected by this anymore, but the very short-term impact of this change will be visible in the last quarter of 2025 for sure.

I would have one more following up question related to products. Could you a little bit more elaborate about the state speculations of overtaking the Marienbad waters or respectively if you are planning to go deeply into medicinal waters as was several times mentioned in media, if you could a little bit elaborate?

One more thing, if you are planning more acquisitions relate to alcoholic products? There was in media briefly that you were interested into acquisitions of I believe Znovín Znojmo, if you are planning not in exactly this acquisition logic, but some other related.

Thank you.

Thank you for your question. Healing waters are very special category of the functional waters.

As I said, functional waters are increasing very significantly currently, definitely this is the category where we are interested in. Especially this case, and also the case of the winemaking company, I will not comment as we do not comment on any acquisitions which are not realized yet, I cannot provide you with more information.

No. Thank you.