Zhoda Investments announces an operational update

Ahead of today's Annual General Meeting, Zhoda Investments ("Zhoda") announces an operational update. Following the outbreak of Covid 19 earlier this year, Zhoda took swift measures to adapt the operations to the new market conditions. Lower oil prices and travel restrictions have affected sales and profits in both the oil and wine operations, but have also opened up new business opportunities.

Wine operations

Croatia is one of the countries within the EU with the lowest number of persons infected by the Corona virus. Since June citizens of all EU countries are free to enter Croatia. The restaurant and hotel sectors that were closed for a couple of months have now opened.

Zhoda's two wineries Testament Winery and Black Island Winery have continued to build their product portfolio and strengthen their brand. The first step in their sales strategies have been to focus on the local Croatian HORECA segment (hotel, restaurant, café). With increasing brand recognition, low logistics costs and no alcohol tax the home market continues to be the primary market. The company's wines are sold in over 200 Croatian restaurants, a couple of which are awarded with a star in the Michelin Guide.

Already in 2019 the company started to address the retail segment, that is supermarkets and wine boutiques. Sales in this segment has partly compensated for the Covid related decrease in HORECA. The company is happy to announce that over 100 stores in each of the nationwide retail chains Konzum and Tommy now carry the company's wines.

Export to other countries is a smaller but increasing share of sales. Establishing a network of importers is a long-term mission and it is therefore satisfying that the company has achieved exports to around 10 countries. In a separate press release published today, the company announced that it has won a tender at the Swedish state alcohol retail monopoly Systembolaget that will enable the company to sell a babic grape wine at 115 stores throughout Sweden starting December this year. Prior to this, the wines were only included in the online ordering segment. The presence on the shelf will significantly increase sales in Sweden.

The company has doubled the sales of bottles during each of the past two years. Sales during the first six months of this year amount to 21,000 bottles, which can be compared to sales of 45,000 bottles for the 12 months of 2019. Despite considerably poorer market conditions, the company has during the first six months managed to reach almost half of the volumes for the whole year 2019.

The vineyard is developing well and the company's winemakers are looking forward to the harvest later this summer.

Oil operations

The world market oil price has been volatile in 2020. The average Brent price during the first six months of the year amounted to 42 dollars per barrel, compared to 66 dollars per barrel in the prior year. It is satisfying the following the lowest point at 18 dollars per barrel the price has rebounded and at least temporarily stabilized at around 40 dollars per barrel, a price level at which the company can produce oil with profitability. It is important to note that the operator's largest cost item is the variable production tax that is directly related to the oil price, which softens the negative effect of the drop in revenue at lower oil prices.

Production during the first five months has been stable during the year and amounted to 203 barrels per day compared to 238 barrels during the same period last year. It is the company's long-term objective to increase production, but during the past few months the operator has focused on day-to-day repair works and not performed more complex workovers that will increase production in the longer term.

The operator has during the year sold oil either at the state auctions or directly to a refinery. The spread of the Corona virus has been relatively low in Ukraine, but there have still been considerable effects on the economy. Less developed market economies are often hit harder, partly due to a lack of liquid funds. To minimize credit risks, the operator sells and delivers oil only on prepayment. Due to the lack of liquidity in the market, the company has therefore built up inventory that is larger compared to last year. The company does not foresee any risks in selling the oil in the long-term.

New investments

Zhoda is evaluating new investment opportunities. The new market conditions affect most nations, industries and companies negatively, but they also open up opportunities for companies that stay strong.

For more information, please contact:

Robert Karlsson, CEO Zhoda Investments AB

+46 709 565 141, robert.karlsson@zhodainvestments.com

www.zhodainvestments.com

About Zhoda Investments

Zhoda Investments invests in selected unlisted European ventures and drives growth and profitability through active ownership and an entrepreneurial approach. Zhoda owns Testament Winery, an organic winery in Dalmatia with a 47-hectare state of the art vineyard mainly producing red wine from the local Babic grape. Zhoda is also the owner of Black Island Winery, a winery on the Dalmatian island of Korcula that produces white premium wines from the indigenous Posip grape under the brand Merga Victa. The group also holds a 45 per cent interest in the Lelyaki oil field in Ukraine with 2P proven and probable oil reserves of 8 million barrels net to the company. Zhoda Investments is actively pursuing new investments. For more information, visit www.zhodainvestments.com.

This is an English translation of the Swedish original. In case of discrepancies, the Swedish original shall prevail.



Zhoda Investments lämnar operativ uppdatering

Inför dagens årsstämma lämnar Zhoda Investments ("Zhoda") en operativ uppdatering. Efter coronautbrottet tidigare i år vidtog bolaget snabbt åtgärder för att anpassa verksamheten till de nya marknadsförutsättningarna. Lägre oljepriser och reserestriktioner har påverkat olje- och vinverksamheternas omsättning och resultat men öppnar också för nya affärsmöjligheter.


Zhoda Investments announces an operational update

Ahead of today's Annual General Meeting, Zhoda Investments ("Zhoda") announces an operational update. Following the outbreak of Covid 19 earlier this year, Zhoda took swift measures to adapt the operations to the new market conditions. Lower oil prices and travel restrictions have affected sales and profits in both the oil and wine operations, but have also opened up new business opportunities.


Zhoda Investments vinner upphandling på Systembolaget

Zhoda Investments helägda dotterbolag Black Island Winery har i hård konkurrens vunnit en upphandling av viner på druvan babic. Vinerna kommer att finnas i ordinarie segment på hyllan i 115 butiker från och med 1 december i år.


Zhoda Investments wins a tender at Systembolaget

Zhoda Investments' wholly owned subsidiary Black Island Winery has won a tender of wines made from the grape babic at Systembolaget, the Swedish retail monopoly. The wine will be available in 115 stores starting 1 December this year.


Zhoda Investments publicerar årsredovisning

Zhoda Investments ("Zhoda") publicerar idag årsredovisningen för 2019.


Zhoda Investments publishes its annual report

Zhoda Investments ("Zhoda") publishes its annual report for 2019.


Kallelse till årsstämma i Zhoda Investments AB (publ)

Aktieägarna i Zhoda Investments AB (publ), organisationsnummer 559030-3490 (nedan "Bolaget") kallas till årsstämma den 29 juni 2020 kl. 15.00 på Grev Turegatan 18 (Alpcot), 2 tr i Stockholm.


Notice to Annual General Meeting of shareholders in Zhoda Investments AB (publ)

The shareholders of Zhoda Investments AB (publ), corporate identity number 559030-3490 (hereinafter the "Company") are hereby given notice to attend the Annual General Meeting to be held at 15.00 CET on 29 June 2020, at Grev Turegatan 18 (Alpcot), 2nd floor, in Stockholm.


Operativ uppdatering från vinverksamheten

Zhoda Investments ("Zhoda") lämnar en operativ uppdatering avseende vinverksamheten belägen i kustregionen Dalmatien i Kroatien. Under år 2019 nådde bolaget flera viktiga milstolpar med väsentligt ökad försäljning, framgångsrik skörd och lansering av varumärket Merga Victa från vingården på ön Korcula.


Operational update from the wine operations

Zhoda Investments ("Zhoda") announces an operational update on the wine operations located in the coastal region of Dalmatia in Croatia. The company reached several important milestones in 2019, including significantly increased sales, a successful harvest and launch of the Merga VIcta brand from the second winery on the island of Korcula.


Operativ och finansiell uppdatering från oljeverksamheten

Zhoda Investments ("Zhoda") lämnar en operativ och finansiell uppdatering avseende oljeverksamheten i Poltava Ukraina. Under årets första tio månader har Zhodas 45 procentiga andel av fältets produktion uppgått till 71 400 fat olja, motsvarande 234 fat per dag. Under samma period har moderbolaget erhållit utdelningar om drygt 8 miljoner kronor från oljeverksamheten.


Operational and financial update from the oil operations

Zhoda Investments ("Zhoda") announces an operational and financial update on the oil operations near Poltava, Ukraine. During the first 10 months of the year, Zhoda's 45 per cent interest in the field production amounted to 71,400 barrels, equivalent to 234 barrels per day. During the same period, the parent company has received dividends from the oil operations amounting to over SEK 8 million.


Kommuniké från extra bolagsstämma i Zhoda Investments

Vid extra bolagsstämma i Zhoda Investments AB fattade aktieägarna beslut att utse WeAudit Sweden AB, med huvudansvarig revisor Mikael Köver, till ny revisor intill slutet av årsstämman 2020. Arvode ska utgå enligt godkänd räkning.


Communiqué from EGM in Zhoda Investments

The shareholders of Zhoda Investments AB passed a resolution at the EGM today to elect the authorized auditing firm WeAudit Sweden AB, with responsible auditor Mikael Köver, until the annual general meeting 2020. The auditors will be paid in accordance with approved invoices.


Kallelse till extra bolagsstämma i Zhoda Investments AB (publ)

Aktieägarna i Zhoda Investments AB (publ), organisationsnummer 559030-3490 (nedan "Bolaget") kallas till extra bolagsstämma den 2 december 2019 kl. 13.00 på Grev Turegatan 18, 2 tr i Stockholm. Den påskrivande revisorn har meddelat Bolaget att han på grund av sjukskrivning inte kan fullfölja uppdraget varför Bolaget kallar till stämma för att utse ny revisor.


Notice to Extraordinary General Meeting of shareholders in Zhoda Investments AB (publ)

The shareholders of Zhoda Investments AB (publ), corporate identity number 559030-3490 (hereinafter the "Company") are hereby given notice to attend the Extraordinary General Meeting to be held at 13.00 CET on 2 December 2019 at Grev Turegatan 18, second floor, in Stockholm. The current auditor has informed the Company that he is unable to fulfill his duties for health reasons and the Company therefore gives notice to a general meeting to appoint a new auditor.


Kommuniké från årsstämma i Zhoda Investments

Vid årsstämma i Zhoda Investments AB fattade aktieägarna i huvudsak följande beslut.


Communiqué from the Annual General Meeting in Zhoda Investments

The shareholders of Zhoda Investments AB passed the following main resolutions at the Annual General Meeting.


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