Management Interim Report of AD Plastik Group and the company AD Plastik Inc. Solin for the first half of 2014

Solin, July 2014

Contents

		page
	a) Managment Interim Report of AD Plastik Group and the Company AD Plastik Inc. Solin for the period 01.01.-30.06.2014	2
	b) Financial reports of AD Plastik Group	4
1.	Balance sheet	6
2.	Profit and loss account	8
3.	Cash flow (indirect method)	10
4.	Report on changes to capital	11
	c) Financial reports of the Company AD Plastik Inc. Solin	12
5.	Balance sheet	14
6.	Profit and loss account	16
7.	Cash flow (indirect method)	17
8.	Report on changes to capital	18
	d) Statement of the person responsible for drafting the financial reports	19

a) Managment Interim Report of AD Plastik Group and the Company AD Plastik Inc. Solin for the period 01.01.-30.06.2014

Financial results of the Group for the period 01.01. – 30.06.2014

Indicator	01.01.- 30.06.2014	01.01.- 30.06.2013	Rate of change %
Sales revenue (thousands of HRK)	372.678	393.209	-5,22%
Net profit (thousands of HRK)	3.298	18.051	-81,72%

In the reporting period, according to plan, AD Plastik Group recorded a decrease in sales revenue of 5,22 % compared to the same period of the previous year. In the observed period the revenue was corrected due to the lower tools revenue in 2014.

Indicator	01.04.- 30.06.2014	01.01.- 31.03.2014	Rate of change %
Sales revenue (thousands of HRK)	205.969	166.708	23,55%
Net profit (thousands of HRK)	11.401	-8.103	n/a

On the other side, the sales revenue increased by 23,55% compared to the first quarter.

During this year a large number of development projects will be completed in our plants and AD Plastik Group is preparing itself for the serial production within these project. Models of the vehicles, that are at the end of their lifetime, are faced with a reduced demand, while on the other hand, the Group increased its need for employees, as the preparation to cover a larger production volume. These circumstances should last until the end of August of this year, when the buyers should come to the final production transition - from old to new models of cars.

The above mentioned facts will result in increase in profitability in the second half, compared to the first half of the year. Also, in second half of the year, after the completion of development projects, the receivables from tools will be collected and this will result in a decrease in credit liabilities until the end of this year.

With the aim of getting a clearer picture of bussines of AD Plastik Group, we prepared abbreviated consolidated profit and loss account of AD Plastik Group with consolidated profit and loss account of associated companies Euro APS, Romania and FADP, Russia for the first half of 2013 and 2014, in which AD Plastik Group has 50% that is 40% of ownership.

Table 3. Profit and loss account of AD Plastik Group with consolidation of belonging part of ownership in Euro APS and FADP for the first half of 2013 and 2014 in thousands of HRK

	AD Plastik Group with	AD Plastik Group with
	consolidation of	consolidation of
POSITIONS	belonging part of	belonging part of
	ownershipin EURO APS	ownershipin EURO APS
	and FADP	and FADP
	1H/2013	1H/2014
OPERATING REVENUES	677.076	648.048
OPERATING EXPENSES	645.505	626.911
Material expenses	427.131	373.803
Staff costs	107.235	118.617
Amortization	33.258	36.319
Other expenses	77.881	98.173
FINANCIAL INCOME	1.988	23.081
FINANCIAL EXPENSES	11.891	36.476
TOTAL REVENUE	679.064	671.129
TOTAL EXPENSES	657.396	663.387
Profit before taxation	21.668	7.742
Profit tax	3.616	4.443
PROFIT FOR THE PERIOD	18.052	3.299

Below we are presenting the most important events in the first half of 2014 per companies of AD Plastik Group.

AD Plastik Inc., Solin

The serial production in new paint shop in Zagreb started at the beginning of April. The serial production of Smart 2S started in July, while the customer increased the production quantities for the new Twingo until the end of July.

According to the decision of the Ministry of Economy, based on realized investments in Croatia for the project Edison, it is planned the use of reduced rate of income tax (from 20% to 0%) also in 2014.

AD Plastik Inc. received a subsidy in the amount of 2 million HRK from the Ministry of Economy within the Operational Programme of regional aid for investments in equipment.

A new deal on production of glass run channels was made for the Group PSA; the start of serial production is planned for the end of the second quarter of 2016th year. Expected revenue from this deal is higher than 6,5 milion EUR during the complete duration of this project.

ADP Mladenovac, Serbia

The industrialization of the new project of headliners for Edison in the technology of thermoforming was completed. The production started in April 2014. The beginning of production of grab handles for Fiat is planned in third quarter.

The company started to deliver the raw material for the production of carpets to our company in Romania.

The production lines for programs otside automotive industry are being loaded with the programs of automotive industry, and the full capacity utilization of both production lines is planned since the beginning of fourth quarter.

ZAO PHR (ADP Togliatti, Russia)

The activities for the realization of X52 project were completed, and the serial production started. Due to the depreciation of the Russian ruble against the Euro, for all the Russian plants it was agreed a sales prices increase with customers, beginning from May. Further changes in the price will be adjusted quarterly, depending on exchange rates. The company started to produce its own raw material for thermoforming of carpets for the needs of our plants in Russia.

It was made a new deal for the production of extruded profiles for the vehicle Chevrolet Niva; the start of serial production is planned for the end of 2015. The expected revenue from this deal amounts to more than 20 milion EUR during the complete duration of this project.

A deal for production of headliners and parcel shelfs was made in second quarter with the customer Avtovaz; the start of serial production is planned for the end of 2015. The expected revenue from this deal amounts to approximately 13 milion EUR during the complete duration of this project

ADP Kaluga, Russia

Intense activities are in process regarding the preparation of the plant for the acceptance of high number of projects and the production volume expansion (bumpers for the project H79 ph-2 for the customer Renault Russia).

It was made a new deal on production of interior positions for Renault Russia; the start of serial production is planned for the beginning of 2016. The expected revenue from this deal amounts to more than 3,5 milion EUR during the complete duration of this project.

A deal for production of floor carpets was made in second quarter for Renault Russia; the start of serial production is expected in the middle of 2015. The expected revenue from this deal amounts to approximately 2 milion EUR during the complete duration of this project. Also, a deal for the production of exterior positions was made in second quarter for Renault Russia; the start of serial production is expected in the beginning of 2016. The expected revenue from this deal amounts to approximately 7,5 milion EUR during the complete duration of this project.

EURO APS, Romania

In the reporting period was continued the trend from the previous year, and the realization is higher than the planned one, as the result of increase in deliveries for the models Sandero and Duster, and the increase of delivered quantities for Russia nad Morocco. A payment of the dividend to the Parent company was carried out in the second quarter.

FADP Luga, Russia

The achieved sales realization is slightly lower than planned one, due to the negative trend of sales of Ford vehicles.

In 2014 we expect the continuation of multi-year trend of revenue growth of AD Plastik Group of at least 5%, and the net profit higher than last year.

On 30.06.2014 the Group had 2.955 employees, out of that 959 in the parent company AD Plastik Inc. Solin.

In the Group`s balance sheet positions relative to December 31st, 2013 the greatest changes were recorded in these positions:

(AOP 003) Intangible assets (increase of 14,3 milion HRK) due to the increased investments in development projects;
(AOP 023) Participating interests (shares) (decrease of 16,8 milion HRK) due to the decision on dividend payment;
(AOP 035) Inventory (increase of 9,4 milion HRK) mostly due to the preparation for increased volume of production;
(AOP 043) Receivables (increase of 55,7 milion HRK) mostly due to the receivables related to dividends;
(AOP 059) Prepayment and accrued income (decrease of 34,3 milion HRK) due to the sales of finished tools;
(AOP 098) Accounts payable (increase of 22,7 milion HRK) mostly due to the preparation for increased volume of production;
(AOP 106) Deferred payment of costs and future income (decrease of 24,3 milion HRK) due to the sales of finished tools;

Results of associated companies EAPS Romania and FADP Holding France are included in the Group under the equity method.

b) Financial reports of AD Plastik Group

Appendix 1
Reporting period: 01.01.2014. till 30.06.2014.

						Quarterly Financial Report of the entrepreneur TFI-POD

	Register number (MB):		03440494
	Entity register number (MBS):		060007090

	Personal identification		48351740621
	number (PIN): Issuing company: AD PLASTIK d.d.

	Post code and place: 21210 SOLIN

	Street and house number: Matoševa 8
	E-mail address: [email protected]

	Internet address: www.adplastik.hr

	Municipality/city code and	406	Solin
	name:
	County code and name:	17	Splitsko-dalmatinska				No. of employees:	2955
	Consolidated report:	YES					(at the end of the trimester) NCA code:	2932


	Names of consolidation subjects (according to IMSF):				Seat:		REG.NO.:
			AD PLASTIK d.d.			Solin, Croatia	03440494

			ZAO PHR			Samara, Russian Federation	1036300221935
			AD PLASTIK d.o.o.			Novo Mesto, Slovenia	1214985000

			ZAO AD PLASTIK KALUGA	Kaluga, Russian Federation			1074710000320
				Mladenovac, Serbia
			ADP d.o.o.				20787538



	Bookkeeping service:

	Contact person:	Marica Jakelić
						(only the name and surname of the contact person to be entered)
	Telephone: 021/206-660					Fax:	021/275-660
	E-mail address: [email protected]

	Name and surname: Katija Klepo
				(person authorised for representation)

	Documentation for publishing:
							1. Financial statements (balance sheet, profit and loss statement, cash flow statement, changes in equity and notes to financial
	statements) 2. Interim report,
	3.Statement of the person responsible for compiling financial statements.


				Place of the seal			(signature of the person authorised for representation)

Balance sheet Assets

BALANCE SHEET
as at 30.06.2014.
Taxpayer: GROUP AD PLASTIK ITEM	AOP ind.	Preceding year	Current year
1	2	3	4
ASSETS
A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID	001
B) FIXED ASSETS (003+010+020+029+033)	002	1.000.000.619	1.006.481.924
I. INTANGIBLE ASSETS (004 up to 009)	003	121.104.322	135.411.364
1. Development costs	004	30.563.507	27.880.134
2. Concessions, patents, licenses, trademarks, softwares and other rights	005	6.081.747	5.163.570
3. Goodwill	006	25.389.920	25.389.920
4. Advances for purchase of intangible assets	007	0	0
5. Intangible assets in preparation	008	56.799.613	74.818.681
6. 6. Other intangible assets II. TANGIBLE ASSETS (011 up to 019)	009 010	2.269.535 711.217.340	2.159.059 721.306.116
1. Land	011	143.636.038	143.536.584
2. Buildings	012	236.922.153	232.568.890
3. Plants and machinery	013	181.325.304	236.593.035
4. Tools, plant & office inventory, furniture & transport means	014	15.629.764	12.799.069
5. Biological assets	015
6. Payments on account for tangible assets	016	6.544.099	16.188.487
7. Tangible assets in preparation	017	127.159.982	79.620.051
8. Other tangible assets	018
9. Investment in real estate	019
III. FIXED FINANCIAL ASSETS (021 up to 028)	020	165.686.310	148.675.579
1. Shares in affiliated undertakings	021
2. Loans to affiliated undertakings	022
3. Participating interests (shares)	023	101.012.324	84.164.240
4. Given loans to companies in which exist participating interests	024	50.102.505	50.102.505
5. Investments in securities 6. Other loan, deposits etc	025 026	63.855 14.507.626	63.855 14.344.979
7. Other fixed financial assets	027
8. Investment stated in equity method	028
IV. RECEIVABLES (030 up to 032)	029	0	0
1. Receivables from associated undertakings	030
2. Receivables from sales on credit	031
3. Other receivables	032
V. DEFFERED TAX ASSETS	033	1.992.647	1.088.865
C) CURRENT ASSETS (035+043+050+058)	034	351.527.466	409.809.649
I. INVENTORY (036 up to 042)	035	94.792.369	104.207.123
1. Materials and supplies	036	64.277.480	65.551.296
2. Work in progress	037	3.687.875	6.261.333
3. Finished goods	038	17.811.402	13.444.227
4. Commercial goods	039	8.197.505	17.286.003
5. Advances for inventories	040	818.107	659.337
6. Long term assets held for sale 7. Biological assets	041 042		1.004.927
II. RECEIVABLES (044 up to 049)	043	210.988.973	266.715.473
1. Receivables from associated undertakings	044
2. Trade receivables	045	136.517.734	149.332.189
3. Receivables from participating companies	046	11.917.016	41.433.192
4. Receivables from employees and members of the business	047	597.479	1.586.671
5. Receivables from government and other institutions	048	15.446.967	19.794.847
6. Other receivables	049	46.509.777	54.568.574
III. CURRENT FINANCIAL ASSETS (051 up to 057)	050	16.803.056	17.534.272
1. Shares in affiliated undertakings	051
2. Loans to affiliates	052
3. Participating interests (shares)	053
4. Given loans to companies in which exist participating interests	054	16.793.680	16.793.680
5. Investments in to securities	055
6. Other loan, deposits etc	056	9.376	740.592
7. Other financial assets IV. CASH AT BANK AND IN HAND	057 058	28.943.068	21.352.781
D) PREPAYMENTA AND ACCRUED INCOME	059	184.902.952	150.617.849
E) TOTAL ASSETS (001+002+034+059)	060	1.536.431.037	1.566.909.422
F) OUT-OF-BALANCE ITEMS	061	16.699.991	17.050.520

LIABILITIES
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	702.805.785	710.875.894
I. SUBSCRIBED SHARE CAPITAL	063	419.958.400	419.958.400
II. CAPITAL RESERVES	064	183.508.545	183.500.187
III. RESERVES FROM GAIN (066+067-068+069+070)	065	30.195.177	23.490.600
1. Legal reserves	066	6.142.459	6.142.213
2. Reserves for own shares	067	4.753.103	2.092.541
3. Own stocks and shares (deductible item)	068	4.753.103	2.092.541
4. Statutory reserves	069	38.119	37.788
5. Other reserves	070	24.014.599	17.310.599
IV. REVALUATION RESERVES	071	10.185.353	10.185.353
V. RETAINED EARNINGS OR LOSS BROUGHT FORWARD (073-074)	072	31.288.154	70.433.387
1. Retained earnings	073	31.288.154	70.433.387
2. Loss brought forward	074
VI. CURRENT YEAR PROFIT OR LOSS (076-077)	075	27.660.899	3.304.099
1. Current year profit	076	27.660.899	3.304.099
2. Current year loss	077		0
VII. MINOR INTEREST	078	9.257	3.868
B) PROVISIONS (080 up to 082)	079	8.074.578	7.355.771
1. Provisions for pensions, severance pay and similar obligations	080	1.084.238	1.084.238
2. Provisions for tax liabilities	081
3. Other provisions	082	6.990.340	6.271.533
C) LONG TERM LIABILITIES (084 up to 092)	083	256.042.084	286.932.294
1. Liabilities to related parties	084
2. Commitments for loans, deposits, etc	085	6.387.912	8.806.334
3. Liabilities to banks and other financial institutions	086	249.428.260	277.811.837
4. Liabilities for advances	087
5. Trade payables	088
6. Commitments on securities	089
7. Liabilities to companies in which are participating interests	090
8. Other long term liabilities	091
9. Deferred tax liabilities	092	225.912	314.123
D) SHORT TERM LIABILITIES (094 do 105)	093	513.478.118	530.060.733
1. Liabilities to related parties	094
2. Commitments for loans, deposits, etc	095	1.145.000	8.543.639
3. Liabilities to banks and other financial institutions	096	238.817.578	203.490.474
4. Liabilities for advances	097	94.659.904	97.161.840
5. Trade payables	098	156.084.720	178.835.672
6. Commitments on securities	099
7. Liabilities to companies in which are participating interests	100	32.480	2.295
8. Liabilities towards employees	101	8.624.454	9.877.728
9. Liabilities for taxes, contributions and other benefits	102	11.060.608	22.757.042
10. Liabilities to share in the result	103	27.856	27.856
11. Amount based on fixed assets intended to sale	104
12. Other short-term liabilities	105	3.025.518	9.364.187
E) DEFERRED PAYMENT OF COSTS AND FUTURE INCOME	106	56.030.472	31.684.730
F) TOTAL LIABILITIES (062+079+083+093+106)	107	1.536.431.037	1.566.909.422
G) OUT-OF BALANCE ITEMS	108	16.699.991	17.050.520
ADDENDUM TO BALANCE SHEET( filled in by the entrepreneur compiling the consolidated annual financial statement)
A) CAPITAL AND RESERVES
1. Ascribed to the holders of the parent company capital	109	702.796.528	710.872.026
2. Ascribed to minority interest	110	9.257	3.868

2. Profit and loss account

PROFIT AND LOSS ACCOUNT
in period from 01.01.2014. till 30.06.2014.
Taxpayer: GROUP AD PLASTIK
ITEM	AOP ind.	Preceding year		Current year
		Cumulative	Quarter	Cumulative	Quarter
1	2	3	4	5	6
I. OPERATING TURNOVER (112+113)	111	403.512.912	226.938.843	385.577.249	214.860.352
1. Income from sales	112	393.209.950	223.535.405	372.678.128	205.969.669
2. Other operating income	113	10.302.962	3.403.438	12.899.121	8.890.683
II. OPERATING CHARGES (115+116+120+124+125+126+129+130)	114	398.502.786	222.483.802	391.785.295	209.695.545
1. Changes in the value of inventories of work in progress and finished goods	115	1.745.513	1.196.970	5.892.083	194.780
2. Material charges (117 up to 119)	116	261.697.269	153.854.632	206.053.634	104.022.543
a) Costs of raw materials and consumables	117	222.420.621	132.544.961	172.881.608	86.742.926
b) Costs of sales	118	8.445.752	3.129.141	5.760.439	1.927.644
c) Other external charges	119	30.830.896	18.180.530	27.411.587	15.351.973
3. Staff costs (121 up to 123)	120	74.167.092	35.621.764	86.912.289	46.466.773
a) Salaries and wages	121	46.262.434	22.162.024	54.628.832	29.303.381
b) Costs of taxes and social security	122	14.539.544	7.169.413	16.942.699	8.926.892
c) Duties on wages	123	13.365.114	6.290.327	15.340.758	8.236.500
4. Depreciation	124	24.670.822	12.199.361	27.554.096	14.133.123
5. Other costs	125	33.659.483	18.234.738	61.671.387	43.545.800
6. Impairment (127+128)	126	0	0	0	0
a) fixed assets (excluding financial assets)	127
b) current assets (excluding financial assets)	128
7. Provisions	129
8. Other operating expenses	130	2.562.607	1.376.337	3.701.806	1.332.526
III. FINANCIAL INCOME (132 up to 136)	131	6.709.308	-924.591	26.331.518	22.521.199
1. Interests, exchange rate differenc, dividends with affiliates	132	329.736	-1.744.329	13.764.897	12.253.753
2. Interests, exch. rate differenc., dividends with non-affiliates	133	1.658.456	-1.530.975	8.595.326	7.034.321
3. Part of income from affiliates and participated interests	134	4.721.116	2.350.713	3.971.295	3.233.125
4. Non-realized financial income	135
5. Other financial income	136
IV. FINANCIAL CHARGES (138 up to 141)	137	10.819.783	4.094.621	34.955.686	24.070.383
1. Interests, exchange rate differenc, dividends with affiliates	138	342.137	-1.836	16.078.375	13.647.025
2. Interests, exch. rate differenc., dividends with non-affiliates	139	10.477.646	4.096.457	18.663.468	10.289.249
3. Non-realized financial charges	140
4. Other financial charges	141			213.843	134.109
V. SHARE OF PROFIT FROM ASSOCIATED COMPANIES	142	17.160.329	9.693.879	22.022.123	10.167.892
VI. SHARE OF LOSS FROM ASSOCIATED COMPANIES	143			3.810.036	2.362.980
VII. EXTRAORDINARY – OTHER INCOME	144
VIII. EXTRAORDINARY – OTHER CHARGES	145
IX. TOTAL INCOME (111+131+142 + 144)	146	427.382.549	235.708.131	433.930.890	247.549.443
X. TOTAL CHARGES (114+137+143 + 145)	147	409.322.569	226.578.423	430.551.017	236.128.908
XI. PROFIT OR LOSS BEFORE TAXATION (146-147)	148	18.059.980	9.129.708	3.379.873	11.420.535
1. Profit before taxation (146-147)	149	18.059.980	9.129.708	3.379.873	11.420.535
2. Loss before taxation (147-146)	150	0	0	0	0
XII. PROFIT TAX	151	8.227	-806.115	80.911	18.850
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151)	152	18.051.753	9.935.823	3.298.962	11.401.685
1. PROFIT FOR THE PERIOD (149-151)	153	18.051.753	9.935.823	3.298.962	11.401.685
2. LOSS FOR THE PERIOD (151-148)	154	0	0	0	0

2. Profit and loss account– extension

ADDENDUM TO ATS (filled in by the entrepreneur compiling the consolidated annual financial statement)
XIV. PROFIT OR LOSS FOR THE CURRENT PERIOD
1. Attributable to equity holders	155	18.052.534	9.936.072	3.304.099	11.403.503
2. Attributable to minority interests	156	-781	-249	-5.137	-1.818
Report for other comprehensive income (only for the taxpayer applying IFRS)
I. PROFIT OR LOSS FOR THE CURRENT PERIOD (= 152)	157	18.051.753	9.935.823	3.298.962	11.401.685
II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAXATION (159 up to 165)	158	0	0	0	0
1. Exchange differences on translation of foreign operations	159
2. Movements in revaluation reserves of fixed and intangible assets	160
3. Profit or loss from revaluation of financial assets available for sale	161
4. Gains or losses on effective cash flow protection	162
5. Gains or losses on effective hedge of a net investment abroad	163
6. Share of other comprehensive income / loss of associated companies	164
7. Actuarial gains / losses on defined benefit plans	165
III. TAX ON OTHER COMPREHENSIVE INCOME FOR THE CURRENT PERIOD	166
IV. OTHER COMPREHENSIVE NET PROFIT OR LOSS	167	0	0	0	0
V. OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD (157+167)	168	18.051.753	9.935.823	3.298.962	11.401.685
ADDENDUM TO Report for other comprehensive income (filled in by the entrepreneur compiling the consolidated annual financial statement)
VI. OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD
1. Attributable to equity holders	169	18.052.534	9.936.072	3.304.099	11.403.503
2. Attributable to minority interests	170	-781	-249	-5.137	-1.818

CASH FLOW REPORT – Indirect method in period from 01.01.2014. till 30.06.2014.
Taxpayer: GROUP AD PLASTIK
ITEM	AOP ind.	Preceding year	Current year
1	2	3	4
CASH FLOW FROM OPERATING ACTIVITIES
1. Profit before taxation	001	18.059.980	3.379.873
2. Depreciation	002	24.670.822	27.554.096
3. Increase of current liabilities	003	59.071.232
4. Decrease of current receivables	004
5. Decrease in stocks	005	11.283.029
6. Other increase of cash flow			903.782
I. Total increase of cash flow from operating activities (001 - 006)	006 007
		113.085.063	31.837.751
1. Decrease of current liabilities	008		8.481.934
2. Increase of current receivables	009	108.082.736	27.278.381
3. Increase in stocks	010		9.414.754
4. Other decrease of cash flow	011	353.436
II. Total decrease of cash flow from operating activities (008 – 011)	012	108.436.172	45.175.069
A1) NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	013	4.648.891	0
A2) NET DECREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	014	0	13.337.318
CASH FLOWS FROM INVESTMENT ACTIVITIES
1. Cash inflows from sale of fixed intangible and tangible assets	015
2. Cash inflows from sale of ownership and debt instruments	016
3. Cash inflows from interest	017
4. Cash inflows from dividends	018		17.524.772
5. Other cash inflows from investment activities	019
III. Total cash inflows from investment activities (015-019)	020	0	17.524.772
1. Cash expenditures for purchase of fixed tangible and intangible assets	021	90.185.124	51.949.914
2. Cash expenditures for acquisition of ownership and debt instruments	022
	023
3. Other cash expenditures from investment activities
IV. Total cash expenditures from investment activities (021-023)	024	90.185.124	51.949.914
B1) NET INCREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (020-024)	025	0	0
B2) NET DECREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (024-020) CASH FLOW FROM FINANCIAL ACTIVITIES	026	90.185.124	34.425.142
1. Cash inflows from issuing ownership and debt financial instruments	027
2. Cash inflows from credit principal, debentures, loans and other borrowings	028	126.374.584	47.169.725
3. Other inflows from financial activities	029	3.487.138	4.690.236

V. Total cash inflows from financial activities (027-029)	030	129.861.722	51.859.961
1. Cash expenditures for the payment of credit principal and debentures	031
2. Cash expenditures for the payment of dividends	032	16.637.212	11.687.788
3. Cash expenditures for financial lease	033	13.951.667
4. Cash expenditures for repurchase of own shares	034
5. Other cash expenditures from financial activities	035
VI. Total cash expenditures from financial activities (031-035)	036	30.588.879	11.687.788
C1) NET INCREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (030-036)	037	99.272.843	40.172.173
C2) NET DECREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (036-030)	038	0	0
Total cash flow increase (013-014+025-026+037-038)	039	13.736.610	0
Total cash flow decrease (014-013+026-025+038-037)	040	0	7.590.287
Cash and cash equivalents at the beginning of the period	041	12.559.745	28.943.068
Cash and cash equivalents increase	042	13.736.610
Cash and cash equivalents decrease	043		7.590.287
Cash and cash equivalents at the end of the period	044	26.296.355	21.352.781

REPORT ON CHANGES TO CAPITAL
for period 1.1.2014 till 30.6.2014
Taxpayer: GROUP AD PLASTIK
ITEM	AOP ind.	Preceding year	Current year
1	2	3	4
1. Subscribed capital	001	419.958.400	419.958.400
2. Capital reserves	002	183.501.730	183.500.187
3. Reserves from profit	003	25.561.542	23.494.468
4. Retained profit or loss carried over	004	78.917.065	70.433.387
5. Current year profit or loss	005	18.052.534	3.304.099
6. Revalorisation of fixed material assets	006
7. Revalorisation of intangible assets	007
8. Revalorisation of financial assets available for sale	008
9. Other revalorisation	009	10.185.353	10.185.353
10. Total capital and reserves (AOP 001-009)	010	736.176.624	710.875.894
11.Exchange rate variations from net investments into foreign business operations	011
12.Current and deferred taxes (part)	012
13.Cash flow protection	013
14.Changes in bookkeeping policies	014
15.Correction of significant mistakes from the previous period	015
16.Other changes to capital	016
17. Total capital increase or decrease (AOP 011 - 016)	017	0	0

17a. Ascribed to holders of the holders company capital	018	736.162.465	710.872.026
17b. Ascribed to minority interest	019	14.159	3.868

c) Financial reports of the Company AD Plastik Inc. Solin

Reporting period: 01.01.2014. till 30.06.2014. Quarterly Financial Report of the entrepreneur TFI-POD Register number (MB): 03440494 Entity register number (MBS): 060007090 48351740621 Personal identification number (PIN): Issuing company: AD PLASTIK d.d. Post code and place: 21210 SOLIN Street and house number: MATOŠEVA 8 E-mail address: [email protected] Internet address: www.adplastik.hr 406 SOLIN Municipality/city code and name: County code and name: 17 SPLITSKO-DALMATINSKA No. of employees: (at the end of the trimester) Consolidated report: NO NCA code: Seat: REG.NO.:










Names of consolidation subjects (according to IMSF):







	959
	2932














Bookkeeping service:

Marica Jakelić Contact person: (only the name and surname of the contact person to be entered)
Telephone: 021/206-660 Fax: 021/275-660

E-mail address: [email protected]
Name and surname: Katija Klepo
(person authorised for representation)

Documentation for publishing:
1. Financial statements (balance sheet, profit and loss statement, cash flow statement, changes in equity and notes to financial
statements)
2. Interim report, 3.Statement of the person responsible for compiling financial statements.


Place of the seal (signature of the person authorised for representation)

AOP ind. Preceding year Current year 2 3 4 001 002 844.652.339 847.610.335 003 58.817.539 67.499.396 004 22.063.521 19.089.330 005 3.675.095 2.871.932 006 007 008 33.078.923 45.538.134 009 010 500.584.584 500.974.223 011 139.976.599 139.976.599 012 163.569.130 161.856.522 013 89.953.041 131.116.427 014 8.416.379 7.322.181 015 016 017 98.669.435 60.702.494 6. 6. Other intangible assets II. TANGIBLE ASSETS (011 up to 019) I. INTANGIBLE ASSETS (004 up to 009) 1. Development costs 2. Concessions, patents, licenses, trademarks, softwares and other rights 3. Goodwill as at 30.06.2014. Taxpayer: AD Plastik d.d. ITEM 4. Advances for purchase of intangible assets 5. Intangible assets in preparation 1 ASSETS A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID B) FIXED ASSETS (003+010+020+029+033) 5. Biological assets 6. Payments on account for tangible assets 7. Tangible assets in preparation 1. Land 2. Buildings 3. Plants and machinery 4. Tools, plant & office inventory, furniture & transport means

BALANCE SHEET

8. Other tangible assets	018
9. Investment in real estate	019
III. FIXED FINANCIAL ASSETS (021 up to 028)	020	284.719.815	278.606.315
1. Shares in affiliated undertakings	021	89.694.982	80.410.982
2. Loans to affiliated undertakings	022	78.039.462	81.708.552
3. Participating interests (shares)	023	52.311.385	51.975.442
4. Given loans to companies in which exist participating interests	024	50.102.505	50.102.505
5. Investments in securities	025	63.855	63.855
6. Other loan, deposits etc	026	14.507.626	14.344.979
7. Other fixed financial assets	027
8. Investment stated in equity method	028
IV. RECEIVABLES (030 up to 032)	029	0	0
1. Receivables from associated undertakings	030
2. Receivables from sales on credit	031
3. Other receivables	032
V. DEFFERED TAX ASSETS	033	530.401	530.401
C) CURRENT ASSETS (035+043+050+058)	034	354.831.285	416.987.864
I. INVENTORY (036 up to 042)	035	37.351.285	34.961.768
1. Materials and supplies	036	23.857.478	24.549.469
2. Work in progress	037	1.853.641	4.051.352
3. Finished goods	038	11.064.194	6.176.093
4. Commercial goods	039	575.972	184.854
5. Advances for inventories	040
6. Long term assets held for sale	041
7. Biological assets	042
II. RECEIVABLES (044 up to 049)	043	259.861.187	331.606.715
1. Receivables from associated undertakings	044	144.490.516	168.412.701
2. Trade receivables	045	55.959.929	70.763.945
3. Receivables from participating companies	046	11.917.016	32.726.115
4. Receivables from employees and members of the business	047	537.181	1.294.715
5. Receivables from government and other institutions	048	7.362.338	14.772.870
6. Other receivables	049	39.594.207	43.636.369
III. CURRENT FINANCIAL ASSETS (051 up to 057)	050	43.087.764	42.769.785
1. Shares in affiliated undertakings	051
2. Loans to affiliates	052	26.284.708	25.235.513
3. Participating interests (shares)	053
4. Given loans to companies in which exist participating interests	054	16.793.680	16.793.680
5. Investments in to securities	055
6. Other loan, deposits etc	056	9.376	740.592
7. Other financial assets	057
IV. CASH AT BANK AND IN HAND	058	14.531.049	7.649.596

D) PREPAYMENTA AND ACCRUED INCOME E) TOTAL ASSETS (001+002+034+059)

F) OUT-OF-BALANCE ITEMS

059 119.103.092 123.265.959 060 1.318.586.716 1.387.864.158 061 4.592.542 4.592.542

Balance sheet – Liabilities

LIABILITIES
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	685.882.725	718.981.031
I. SUBSCRIBED SHARE CAPITAL	063	419.958.400	419.958.400
II. CAPITAL RESERVES	064	183.075.797	183.075.797
III. RESERVES FROM GAIN (066+067-068+069+070)	065	30.143.451	23.439.451
1. Legal reserves	066	6.128.852	6.128.852
2. Reserves for own shares	067	4.753.103	2.092.541
3. Own stocks and shares (deductible item)	068	4.753.103	2.092.541
4. Statutory reserves	069
5. Other reserves	070	24.014.599	17.310.599
IV. REVALUATION RESERVES	071	10.185.353	10.185.353
V. RETAINED EARNINGS OR LOSS BROUGHT FORWARD (073-074)	072	42.519.724	42.519.724
1. Retained earnings	073	42.519.724	42.519.724
2. Loss brought forward	074
VI. CURRENT YEAR PROFIT OR LOSS (076-077)	075	0	39.802.306
1. Current year profit	076		39.802.306
2. Current year loss	077
VII. MINOR INTEREST	078
B) PROVISIONS (080 up to 082)	079	6.002.894	6.002.894
1. Provisions for pensions, severance pay and similar obligations	080	1.084.238	1.084.238
2. Provisions for tax liabilities	081
3. Other provisions	082	4.918.656	4.918.656
C) LONG TERM LIABILITIES (084 up to 092)	083	204.715.674	227.832.572
1. Liabilities to related parties	084	11.138.228	4.756.337
2. Commitments for loans, deposits, etc	085
3. Liabilities to banks and other financial institutions	086	193.577.446	223.076.235
4. Liabilities for advances	087
5. Trade payables	088
6. Commitments on securities	089
7. Liabilities to companies in which are participating interests	090
8. Other long term liabilities	091
9. Deferred tax liabilities	092
D) SHORT TERM LIABILITIES (094 do 105)	093	403.652.012	418.898.055
1. Liabilities to related parties	094	7.212.655	23.041.813
2. Commitments for loans, deposits, etc	095	1.145.000	1.145.000
3. Liabilities to banks and other financial institutions	096	206.140.015	183.164.556
4. Liabilities for advances	097	70.943.829	69.080.883
5. Trade payables	098	107.064.333	122.603.692
6. Commitments on securities	099
7. Liabilities to companies in which are participating interests	100	32.480	2.295
8. Liabilities towards employees	101	5.630.417	6.008.839
9. Liabilities for taxes, contributions and other benefits	102	3.258.615	11.626.309
10. Liabilities to share in the result	103	27.856	27.856
11. Amount based on fixed assets intended to sale	104
12. Other short-term liabilities	105	2.196.812	2.196.812
E) DEFERRED PAYMENT OF COSTS AND FUTURE INCOME	106	18.333.411	16.149.606
F) TOTAL LIABILITIES (062+079+083+093+106)	107	1.318.586.716	1.387.864.158
G) OUT-OF BALANCE ITEMS	108	4.592.542	4.592.542
ADDENDUM TO BALANCE SHEET( filled in by the entrepreneur compiling the consolidated annual financial statement)
A) CAPITAL AND RESERVES
1. Ascribed to the holders of the parent company capital	109
2. Ascribed to minority interest	110

6. Profit and loss account

AOP ind. Cumulative Quarter Cumulative Quarter 2 3 4 5 6 111 264.312.759 149.994.096 261.179.358 153.335.914 112 261.079.000 148.686.677 253.674.210 148.488.864 113 3.233.759 1.307.419 7.505.148 4.847.050 114 255.817.793 146.413.904 255.666.664 143.871.930 115 2.125.742 800.411 2.685.719 -1.162.976 116 169.053.624 101.843.072 141.004.016 79.648.973 117 120.835.704 71.672.766 107.132.147 57.716.215 118 29.391.884 17.404.927 18.163.443 12.903.752 119 18.826.036 12.765.379 15.708.427 9.029.006 120 43.425.715 22.208.920 50.530.291 26.280.363 121 26.055.429 13.325.352 30.318.175 15.768.218 122 10.856.429 5.552.230 12.632.573 6.570.091 123 6.513.857 3.331.338 7.579.543 3.942.054 124 14.649.776 7.311.534 14.967.662 7.470.594 125 26.545.322 14.241.812 44.957.318 31.440.325 126 0 0 0 0 127 128 129 130 17.614 8.155 1.521.658 194.651 131 30.567.319 24.698.089 45.499.981 40.893.589 132 2.292.899 947.174 2.803.134 87.698 133 1.598.968 -554.134 3.923.693 2.770.907 134 26.675.452 24.305.049 38.773.154 38.034.984 135 136 137 7.660.496 3.716.495 11.210.369 5.429.428 138 617.873 381.919 440.291 255.384 139 7.042.623 3.334.576 10.770.079 5.174.044 140 141 142 143 144 145 146 294.880.078 174.692.185 306.679.339 194.229.503 147 263.478.289 150.130.399 266.877.033 149.301.358 148 31.401.789 24.561.786 39.802.306 44.928.145 149 31.401.789 24.561.786 39.802.306 44.928.145 150 0 0 0 0 151 -810.405 152 31.401.789 25.372.191 39.802.306 44.928.145 153 31.401.789 25.372.191 39.802.306 44.928.145 154 0 0 0 0 155 156 157 158 0 0 0 0 159 160 161 162 163 164 165 166 167 0 0 0 0 168 0 0 0 0 169 170 2. Other operating income Preceding year Current year Taxpayer: AD Plastik d.d. ITEM 1 I. OPERATING TURNOVER (112+113) 1. Income from sales b) Costs of sales c) Other external charges 3. Staff costs (121 up to 123) a) Salaries and wages II. OPERATING CHARGES (115+116+120+124+125+126+129+130) 1. Changes in the value of inventories of work in progress and finished goods 2. Material charges (117 up to 119) a) Costs of raw materials and consumables 6. Impairment (127+128) a) fixed assets (excluding financial assets) b) current assets (excluding financial assets) 7. Provisions b) Costs of taxes and social security c) Duties on wages 4. Depreciation 5. Other costs 3. Part of income from affiliates and participated interests 4. Non-realized financial income 5. Other financial income IV. FINANCIAL CHARGES (138 up to 141) 8. Other operating expenses III. FINANCIAL INCOME (132 up to 136) 1. Interests, exchange rate differenc, dividends with affiliates 2. Interests, exch. rate differenc., dividends with non-affiliates V. SHARE OF PROFIT FROM ASSOCIATED COMPANIES VI. SHARE OF LOSS FROM ASSOCIATED COMPANIES VII. EXTRAORDINARY – OTHER INCOME VIII. EXTRAORDINARY – OTHER CHARGES 1. Interests, exchange rate differenc, dividends with affiliates 2. Interests, exch. rate differenc., dividends with non-affiliates 3. Non-realized financial charges 4. Other financial charges 2. Loss before taxation (147-146) XII. PROFIT TAX XIII. PROFIT OR LOSS FOR THE PERIOD (148-151) 1. PROFIT FOR THE PERIOD (149-151) IX. TOTAL INCOME (111+131+142 + 144) X. TOTAL CHARGES (114+137+143 + 145) XI. PROFIT OR LOSS BEFORE TAXATION (146-147) 1. Profit before taxation (146-147) 2. Attributable to minority interests I. PROFIT OR LOSS FOR THE CURRENT PERIOD (= 152) Report for other comprehensive income (only for the taxpayer applying IFRS) II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAXATION (159 up to 165) 2. LOSS FOR THE PERIOD (151-148) ADDENDUM TO ATS (filled in by the entrepreneur compiling the consolidated annual financial statement) XIV. PROFIT OR LOSS FOR THE CURRENT PERIOD 1. Attributable to equity holders 7. Actuarial gains / losses on defined benefit plans 1. Attributable to equity holders 1. Exchange differences on translation of foreign operations 2. Movements in revaluation reserves of fixed and intangible assets 3. Profit or loss from revaluation of financial assets available for sale 4. Gains or losses on effective cash flow protection in period from 01.01.2014. till 30.06.2014. PROFIT AND LOSS ACCOUNT 2. Attributable to minority interests III. TAX ON OTHER COMPREHENSIVE INCOME FOR THE CURRENT PERIOD IV. OTHER COMPREHENSIVE NET PROFIT OR LOSS V. OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD (157+167) ADDENDUM TO Report for other comprehensive income (filled in by the entrepreneur compiling the consolidated annual financial statement) VI. OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD 5. Gains or losses on effective hedge of a net investment abroad 6. Share of other comprehensive income / loss of associated companies

CASH FLOW REPORT – Indirect method
in period from 01.01.2014. till 30.06.2014.
Taxpayer: AD Plastik d.d.
ITEM	AOP ind.	Preceding year	Current year
1	2	3	4
CASH FLOW FROM OPERATING ACTIVITIES
1. Profit before taxation	001	31.401.789	39.802.306
2. Depreciation	002	14.649.776	14.967.662
3. Increase of current liabilities	003	43.147.924	13.062.238
4. Decrease of current receivables	004
5. Decrease in stocks	005	5.682.642	2.389.517
6. Other increase of cash flow	006
I. Total increase of cash flow from operating activities (001 - 006)	007	94.882.131	70.221.723
1. Decrease of current liabilities	008
2. Increase of current receivables	009	94.975.738	83.174.944
3. Increase in stocks	010
4. Other decrease of cash flow	011
II. Total decrease of cash flow from operating activities (008 – 011)	012	94.975.738	83.174.944
A1) NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	013	0	0
A2) NET DECREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	014	93.607	12.953.221
CASH FLOWS FROM INVESTMENT ACTIVITIES
1. Cash inflows from sale of fixed intangible and tangible assets	015

2. Cash inflows from sale of ownership and debt instruments	016
3. Cash inflows from interest	017	886.254	1.429.565
4. Cash inflows from dividends	018		17.524.772
5. Other cash inflows from investment activities	019
III. Total cash inflows from investment activities (015-019)	020	886.254	18.954.337
1. Cash expenditures for purchase of fixed tangible and intangible assets	021	39.743.041	24.039.158
2. Cash expenditures for acquisition of ownership and debt instruments	022
3. Other cash expenditures from investment activities	023
IV. Total cash expenditures from investment activities (021-023)	024	39.743.041	24.039.158
B1) NET INCREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (020-024)	025	0	0
B2) NET DECREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (024-020)	026	38.856.787	5.084.821
CASH FLOW FROM FINANCIAL ACTIVITIES
1. Cash inflows from issuing ownership and debt financial instruments	027		6.431.479
2. Cash inflows from credit principal, debentures, loans and other borrowings	028	74.764.063	23.116.898
3. Other inflows from financial activities	029	4.674.813
V. Total cash inflows from financial activities (027-029)	030	79.438.876	29.548.377
1. Cash expenditures for the payment of credit principal and debentures	031
2. Cash expenditures for the payment of dividends	032	16.637.212	11.687.788
3. Cash expenditures for financial lease	033	13.951.667
4. Cash expenditures for repurchase of own shares	034
5. Other cash expenditures from financial activities	035		6.704.000
VI. Total cash expenditures from financial activities (031-035)	036	30.588.879	18.391.788
C1) NET INCREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (030-036)	037	48.849.997	11.156.589
C2) NET DECREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (036-030)	038	0	0
Total cash flow increase (013-014+025-026+037-038)	039	9.899.603	0
Total cash flow decrease (014-013+026-025+038-037)	040	0	6.881.453

Cash and cash equivalents at the beginning of the period	041	6.353.591	14.531.049
Cash and cash equivalents increase	042	9.899.603
Cash and cash equivalents decrease	043		6.881.453
Cash and cash equivalents at the end of the period	044	16.253.194	7.649.596

8. Report on changes to capital

REPORT ON CHANGES TO CAPITAL
for period 1.1.2014 till 30.6.2014
Taxpayer: AD Plastik d.d.
ITEM	AOP ind.	Preceding year	Current year
1	2	3	4
1. Subscribed capital	001	419.958.400	419.958.400
2. Capital reserves	002	183.075.797	183.075.797
3. Reserves from profit	003	25.496.563	23.439.451
4. Retained profit or loss carried over	004	44.767.328	42.519.724
5. Current year profit or loss	005	31.401.789	39.802.306
6. Revalorisation of fixed material assets	006
7. Revalorisation of intangible assets	007
8. Revalorisation of financial assets available for sale	008
9. Other revalorisation	009	10.185.353	10.185.353
10. Total capital and reserves (AOP 001-009)	010	714.885.230	718.981.031
11.Exchange rate variations from net investments into foreign business	011
12.Current and deferred taxes (part)	012
13.Cash flow protection	013
14.Changes in bookkeeping policies	014
15.Correction of significant mistakes from the previous period	015
16.Other changes to capital	016
17. Total capital increase or decrease (AOP 011 - 016)	017	0	0
17a. Ascribed to holders of the holders company capital	018
17b. Ascribed to minority interest	019

d) Statement of the person responsible for drafting the financial reports

According to the best of my knowledge:

1. Unaudited financial reports of AD Plastik Group and the Company AD Plastik Inc. Solin for the period of 01.01. - 30.06.2014, have been prepared in accordance with the application of corresponding financial reporting standards, they give a complete and true view of the assets and liabilities, profit and loss, a financial position and business of the issuer and the companies included in the consolidation as a whole.
1. Managing report gives a true view of development of results and business and the position of the issuer and companies included in the consolidation, with the description of key risks and uncertainties to which the issuer and the company are exposed as a whole.
1. This report may contain certain statements concerning the future business of AD Plastik Group and the Company. The above forward-looking statements reflect the current views of the Company regarding future events and they are based on assumptions and they subject to risks and uncertainties. A large number of factors can cause that the actual results, performances or achievements of AD Plastik Group or the Company can be different from the results or performances expressed or implied in these forward-looking statements.

Accounting Department Manager Board Member for Finance and

Accounting Marica Jakelić Katija Klepo

AI Terminal

AD Plastik d.d.

2080_10-q_2014-07-30_ea06c850-da31-4b3a-8f3f-fff3b80444f3.pdf