Pursuant to the Rules and Regulations of the Ljubljana Stock Exchange, d.d, and the relevant legislation, the company Poslovni sistem Mercator, d.d., hereby informs the shareholders and the public of the following:

At its 4th session, Supervisory Board of the company Poslovni sistem Mercator adopted the revised five-year business strategy that continues to emphasize Mercator as the best local retailer in all markets of its core operations as the key policy and orientation. Consistently with the adopted strategy, the Supervisory Board supported the Management Board in its activities to sign strategic long-term contracts with local suppliers. The Supervisory Board was also presented the plan for building a new logistics and distribution centre in Ljubljana and emphasized its support to the Management Board for continuing this project that is the largest investment in Mercator's corporate history. The Supervisory Board approved the 2020 annual plan.

Long-term cooperation with local suppliers shall remain one of Mercator's key distinguishing features, while for local suppliers, long-term cooperation with Slovenia's and region's largest retailer will be the foundation for further development.

The Supervisory Board discussed in detail all activities pertaining to the transfer to the Fortenova Group, and stressed that with the transfer to the new group, Mercator will get additional potential for growth and development.

The new logistics and distribution centre in Ljubljana will considerably improve cost efficiency, simplify work processes, relieve the employees of some workload, as well make cooperation with local and other suppliers much easier. The new logistics and distribution centre in BTC in Ljubljana is planned to be built by the end of 2021.

This announcement will be published on the company’s website at www.mercatorgroup.si as of December 6, 2019, and will remain posted for a period of at least five years.