Adriatic Croatia International Club za djelatnost marina d d : Interim Financial Report for period January – September 2022 (unaudited)

Address: Rudolfa Strohala 2

Ordinary shares: ISIN HRACI0RA0000

Economic activity: R 9329

Market: Regular market

LEI:7478000090X86WBQ6C10

Home member state: Croatia

ADRIATIC CROATIA INTERNATIONAL CLUB, za djelatnost marina d.d.

INTERIM FINANCIAL REPORT

FOR PERIOD ENDED 30

SEPTEMBER 2022 (UNAUDITED)

MANAGEMENT REPORT

SUMMARY

1. GENERAL DATA
2. MANAGEMENT REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2022
3. CONDENSED FINANCIAL STATMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2022 (UNAUDITED)
4. MANAGEMENT BOARD STATEMENT

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ADRIATIC CROATIA INTERNATIONAL CLUB, za djelatnost marina d.d.

GENERAL DATA

Adriatic Croatia International Club, za djelatnost marina d.d. (abbreviated as ACI d.d.) was founded in 1983. The Company's main business activity is providing yearly, monthly, and daily berthing services in ports for nautical tourism. In addition to this, ACI offers its clients supplementary services, such as boat lowering and lifting, towing, boat ramp services and other activities, such as catering, retail business, charter etc., are provided by other legal and natural entities on the basis of business cooperation contracts.

• 39 years of business
• 22 marinas and 1 anchorage
• Location: along the Adriatic, from Umag to Dubrovnik
• Company's vessels for rent: ClubSwan36 fleet of vessels and vessel Catamaran SABA 50,
• Accommodation capacity: Cres, Šimuni, Milna and Rab
• Retail business: soon to be and online
• Magazine ACI No.1: online and printed version

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MANAGEMENT REPORT

MANAGEMENT REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 22 (unaudited)

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ADRIATIC CROATIA INTERNATIONAL CLUB, za djelatnost marina d.d.

COMMENT FROM THEA PRESIDENT OF THE

MANAGEMENT BO RD

Commenting on athe financial achievements in the third quarter of 2022, Kristijan Pavić, the President of the Management Bo rd of ACI d.d., says:

"In the third quarter of 2022, ACI continued to achieve a significant increase in revenues compared to the same period of the previous year, despite all the challenges met in

the operation of business. The operating revenue of the Company increased by 18%, and the increase was recorded in all categories of services, due to the excellent tourist season and as a result of an increase in the number of boats and visitors in ACI marinas. Additionally, part of the increase in revenue is the result of the selling prices policy, which was successful to a great extent in compensating for the negative impacts of the significant increase in energy costs and other expenses, which can be seen in the Company's cost structure.

Investing in quality and clients' satisfaction encourages us to make constant investments. Consequently, almost HRK 52 million were invested in the system in the first 9 months. In the marina in Dubrovnik, new infrastructure was built and a pier was reconstructed in order to accommodate larger boats. The anchoring systems in the marina in Trogir were reconstructed with a view to increasing the safety of boats and visitors; new apartments were built in the marinas Milna and Rab, which will

add to their offerings: and works on parking systems in several marinas are nearly completed, which have also been undertaken in order to increase the safety of boats and visitors.

We have once again participated in the Nautical Sail project, and the awards are expected to be announced in October. At Croatian Tourism Days, as many as three ACI marinas - Rovinj, Split and Dubrovnik - were nominated in various categories, with ACI Marina Dubrovnik winning the Best Marina Award in the category of middle-sized marinas and the Marina of the Year Award. The dock staff of ACI Marina Vrboska won the Employees of the Year recognition in the sector of nautical tourism due to their heroic act of rescuing a three- member boat crew near Vrboska last summer. The fifth issue of ACI No. 1 magazine was published just ahead of the season, and the end of September was marked by intensive work with partners on organising the Club Swan 36 European championship, which was held in Croatia for the first time. The regatta took place in Split.

In the situation of economic instability, the care for employees has increased in importance. We are committed to maintaining our workforce and to offering the employees the best conditions possible. The results achieved in the season were excellent, which opened up the opportunity to award one-off bonuses and one-time pay increases to all employees in August and September.

Additionally, collective bargaining is underway, and we are working hard with the unions to reach agreement on increasing the workers' rights, i.e., pay adjustment in accordance with market trends and current inflationary pressures, at the same time maintaining the financial stability of the Company.

Given all of the above, until the end of the year, we expect stable revenues, a mild increase in costs due to the situation in the market, along with the continuation of priority investment and the work on solving strategic issues, especially in connection with extending the concession periods."

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