Provision
Program includes stimulating severance payments amounting to HRK 3,000.00 for
each year spent within Podravka Group.

This Resolution
is a part of the continued reorganization process within the company, with the
purpose of optimizing expenses and increasing business efficiency,
sustainability of jobs and Podravka’s long-term competitiveness on domestic and
foreign markets.

”Podravka is on a turning point when changes are
necessary in order to ensure a long-term and sustainable growth.
In order to
have a long-term and sustainable company growth, we need to ensure sustainable
jobs and increase efficiency, with reducing business costs.
We will be
implementing a Provision Program which will provide for workers financially and
existentially through a stimulating severance pay, which will amount to three thousand
kunas for each year of continuous work at Podravka.” – Podravka Management Board President
Zvonimir Mršić said.

Restructuring
of Podravka will be performed in several steps, and after the restructuring was
started and then stopped several years ago, this is the beginning of a new
restructuring cycle, a step which is necessary and very well devised, with the
purpose of strengthening the company in comparison to the competition on the
ever more demanding domestic and foreign markets.