Management Interim Report of AD Plastik Group and the company AD Plastik Inc. Solin for the third quarter of 2014

Solin, October of 2014

Contents

		page
	a) Managment Interim Report of AD Plastik Group and the Company AD Plastik Inc. Solin for the period 01.01.-30.09.2014	2
	b) Financial reports of AD Plastik Group	6
1.	Balance sheet	8
2.	Profit and loss account	10
3.	Cash flow (indirect method)	12
4.	Report on changes to capital	13
	c) Financial reports of the Company AD Plastik Inc. Solin	14
5.	Balance sheet	16
6.	Profit and loss account	18
7.	Cash flow (indirect method)	19
8.	Report on changes to capital	20
	d) Statement of the person responsible for drafting the financial reports	21

a) Management Interim Report of AD Plastik Group and the Company AD Plastik Inc. Solin for the period 01.01.-30.09.2014

Financial results of the Group for the period 01.01. – 30.09.2014

Indicator	01.01.- 30.09.2013.	01.01.- 30.09.2014.	Rate of change %
Sales revenue (thousands of HRK)	594.164	608.099	2,35%
Net profit (thousands of HRK)	23.527	4.973	-78,86%

In the reporting period AD Plastik Group (hereinafter: ADP Group) recorded an increase in sales revenue of 2,35% compared to the same period of the previous year, due to the growth of sales in Croatia.

A large investment cycle which started in 2012 is nearing completion, that is the largest number of development projects by the end of this year will be handed over to the serial production.

The main reasons because of which in the third quarter the profitability did not increase are the following:

Cessation of production of the old models of vehicles, and the adjustment of serial production of new vehicles;
Deterioration in market conditions in Russia.

Models of vehicles that are near the end of their lifetime have been replaced with the new models, whose sales ih much better, as is evident from the increase in sales revenue in the reporting period, which have reached the highest amount in the last few years during third quarter.

In the last quarter the receivables from tools will be collected after the completion of development projects which will result in a decrease in credit liabilities.

In 2014 year we expect a continuation of the revenue growth for ADP Group of at least 5%. The risk of negative exchange rate movements of the Russian ruble compare to the euro due to quarterly adjustment of selling prices for the customers could result in a lower net profit of ADP Group in 2014 compared to the previous year.

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

POSITIONS	AD Plastik Group with consolidation of belonging part of ownershipin EURO APS and FADP 01.01.-30.09.2013.	AD Plastik Group - without consolidation of associated companies 01.01.-30.09.2014
OPERATING REVENUES	996.036	988.935
OPERATING EXPENSES	951.142	956.699
Material expenses	639.260	620.572
Staff costs	160.182	173.548
Amortization	50.435	53.920
Other expenses	101.265	108.660
FINANCIAL INCOME	3.864	24.666
FINANCIAL EXPENSES	19.890	45.583
TOTAL REVENUE	999.900	1.013.601
TOTAL EXPENSES	971.032	1.002.283
Profit before taxation	28.868	11.318
Profit tax	5.341	6.345
PROFIT FOR THE PERIOD	23.527	4.973

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

Below we are presenting the most important events for the first nine months of 2014 per companies of AD Plastik Group.

AD Plastik Inc., Solin

The serial production of all three vehicles from the project Edison (Renault Twingo, Smart 2S and 4S) started during the reporting period.

The increase of production capacities by 20% in the plant in Solin is in process, and it will be completed until the middle of December. This increase is the result of a rapid growth of demand for new vehicles and it was previously planned for 2015.

In the third quarter we employed 157 new employees, that is since the beginning of the year 222 new employees in Zagreb and Solin, in purpose of preparation for increase in production volume. 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.

ADP Mladenovac, Serbia

During the reporting period started the serial production of headliners for the project Edison and the serial production of grab handles for Fiat, Italy. In the third quarter the volume of deliveries was decreased due to reduced orders from the customer Fiat, Serbia. The realization of the grab handles project for the customer Renualt for several vehicles and locations is in progress.

The company increased the volume of deliveries of raw material for the production of carpets for our plant in Romania. The production lines for programs outside automotive industry are still being loaded with the programs of automotive industry.

ZAO PHR (ADP Togliatti, Russia)

In the prevoius period on Russian market was partially realized the increase of products sales prices due to the depreciation of the Russian ruble against the Euro. Further changes in the prices will be adjusted quarterly, depending on exchange rates.

In the third quarter was recorded a decrase in sales of new vehicles in Russia of more than 20%, which also reflected on the business of our companies.

In the third quarter was made a deal for production of weatherstrip seal for the customer AvtoVaz; the start of serial production is planned for the third quarter of 2015. The expected revenue from this deal amounts to approximately 2,5 milion EUR during the complete duration of this project.

ADP Kaluga, Russia

The activities are in process regarding the preparation of the plant for the acceptance of new projects and the production volume expansion (interior and exterior positions for the vehicles Renault Duster and Nissan X-trail).

In the third quarter was made a deal for production of bumpers for the customer Renault Russia; the start of serial production is planned for the third quarter of 2016. The expected revenue from this deal amounts to approximately 3,5 milion EUR during the complete duration of this project.

Likewise, in the reporting peirod was made a deal for production of interior positions for the customer Renault Russia; the start of serial production is planned for the first quarter of 2016. The expected revenue from this deal amounts to approximately 6,5 milion EUR during the complete duration of this project.

EURO APS, Romania

In the reporting period was continued the trend from the previous year, as the result of increase in deliveries for Dacia models, and the increase of delivered quantities for other markets.

FADP Luga, Russia

The achieved sales realization is lower than planned one, due to the negative trend of sales of vehicles, and the negative financial result was realized. The activities of plant preparation for the acceptance of new projects (interior positions for the vehicles Ford Fiesta an Ecosport, and Nissan X-trail) are in process.

On 30.09.2014 the Group had 3.176 employees, out of that 1.116 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 19,2 milion HRK) due to the increased investments in development projects;
(AOP 013 and AOP 017) Plants and machinery and Tangible assets in progress (increase of 51,4 milion HRK and decrease of 43,2 milion HRK) – mainly due to putting into use the new paintshop;
(AOP 023) Participating interests (shares) (decrease of 14,5 milion HRK) due to the decision on dividend payment;
(AOP 035) Inventory (increase of 16,4 milion HRK) mostly due to the preparation for increased volume of production;
(AOP 043) Receivables (increase of 50,9 milion HRK) mostly due to the receivables related to dividends and increased sales;
(AOP 059) Prepayment and accrued income (decrease of 63,3 milion HRK) due to the sales of finished tools;
(AOP 086 and 096) Long-term and Short-term debts towards financial institutions (increase of 32,5 milion and decrease of 9,9 milion HRK) – closing the financial structure for the closure of intense investment cycle
(AOP 098) ) Accounts payable (increase of 13,5 milion HRK) mostly due to the preparation for increased volume of production;

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

b) Financial reports of AD Plastik Group

			01.01.2014.		till	30.09.2014.

					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 name:	406	Solin
County code and name:	17	Splitsko-dalmatinska				No. of employees:	3176
						(at the end of the trimester)
Consolidated report:	YES					NCA code:	2932
Names of consolidation subjects (according to IMSF):				Seat:		REG.NO.:
		AD PLASTIK d.d.			Solin, Hrvatska	03440494
		ZAO PHR			Samara, Ruska Federacija	1036300221935

		AD PLASTIK d.o.o.			Novo Mesto, Slovenija	1214985000
		ZAO AD PLASTIK KALUGA	Kaluga, Ruska Federacija			1074710000320
		ADP d.o.o.			Mladenovac, Srbija	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 30.09.2014.
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	1.001.503.657
I. INTANGIBLE ASSETS (004 up to 009)	003	121.104.322	140.275.505
1. Development costs	004	30.563.507	36.146.259
2. Concessions, patents, licenses, trademarks, softwares and other rights	005 006	6.081.747	4.888.052
3. Goodwill 4. Advances for purchase of intangible assets	007	25.389.920 0	25.389.920
5. Intangible assets in preparation	008	56.799.613	72.483.168
6. 6. Other intangible assets	009	2.269.535	1.368.106
II. TANGIBLE ASSETS (011 up to 019)	010	711.217.340	711.746.337
1. Land	011	143.636.038	143.266.015
2. Buildings	012	236.922.153	226.577.743
3. Plants and machinery	013	181.325.304	232.694.406
4. Tools, plant & office inventory, furniture & transport means	014	15.629.764	11.169.471
5. Biological assets	015
6. Payments on account for tangible assets	016	6.544.099	13.854.153
7. Tangible assets in preparation	017	127.159.982	83.932.358
8. Other tangible assets	018		252.191
9. Investment in real estate III. FIXED FINANCIAL ASSETS (021 up to 028)	019 020	165.686.310	148.950.008
1. Shares in affiliated undertakings	021
2. Loans to affiliated undertakings	022
3. Participating interests (shares)	023	101.012.324	86.523.669
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	12.259.979
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 3. Other receivables	031 032
V. DEFFERED TAX ASSETS	033	1.992.647	531.807
C) CURRENT ASSETS (035+043+050+058)	034	351.527.466	400.090.185
I. INVENTORY (036 up to 042)	035	94.792.369	111.231.539
1. Materials and supplies	036	64.277.480	62.038.417
2. Work in progress	037	3.687.875	7.873.263
3. Finished goods	038	17.811.402	16.524.685
4. Commercial goods	039	8.197.505	23.809.065
5. Advances for inventories	040	818.107
6. Long term assets held for sale	041		986.109
7. Biological assets	042
II. RECEIVABLES (044 up to 049)	043	210.988.973	261.859.962
1. Receivables from associated undertakings 2. Trade receivables	044 045	136.517.734	184.319.289
3. Receivables from participating companies	046	11.917.016	29.326.466
4. Receivables from employees and members of the business	047	597.479	1.486.832
5. Receivables from government and other institutions	048	15.446.967	10.392.822
6. Other receivables	049	46.509.777	36.334.553
III. CURRENT FINANCIAL ASSETS (051 up to 057)	050	16.803.056	19.097.453
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 6. Other loan, deposits etc	055 056	9.376	2.303.773
7. Other financial assets	057
IV. CASH AT BANK AND IN HAND	058	28.943.068	7.901.231
D) PREPAYMENTA AND ACCRUED INCOME	059	184.902.952	121.638.223
E) TOTAL ASSETS (001+002+034+059)	060	1.536.431.037	1.523.232.065
F) OUT-OF-BALANCE ITEMS	061	16.699.991	4.592.542

Liabilities
LIABILITIES
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	702.805.785	659.606.467
I. SUBSCRIBED SHARE CAPITAL	063	419.958.400	419.958.400
II. CAPITAL RESERVES	064	183.508.545	183.527.951
III. RESERVES FROM GAIN (066+067-068+069+070)	065	30.195.177	26.679.438
1. Legal reserves	066	6.142.459	6.141.750
2. Reserves for own shares	067	4.753.103	3.400.600
3. Own stocks and shares (deductible item)	068	4.753.103	3.400.600
4. Statutory reserves	069	38.119
5. Other reserves	070	24.014.599	20.537.688
IV. REVALUATION RESERVES	071	10.185.353	10.185.353
V. RETAINED EARNINGS OR LOSS BROUGHT FORWARD (073-074)	072	31.288.154	14.273.787
1. Retained earnings	073	31.288.154	14.273.787
2. Loss brought forward	074
VI. CURRENT YEAR PROFIT OR LOSS (076-077)	075	27.660.899	4.979.004
1. Current year profit	076	27.660.899	4.979.004
2. Current year loss	077
VII. MINOR INTEREST	078	9.257	2.534
B) PROVISIONS (080 up to 082)	079	8.074.578	7.394.035
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	6.309.797
C) LONG TERM LIABILITIES (084 up to 092)	083	256.042.084	298.078.126
1. Liabilities to related parties	084
2. Commitments for loans, deposits, etc	085	6.387.912	11.398.519
3. Liabilities to banks and other financial institutions	086	249.428.260	281.918.230
4. Liabilities for advances	087
5. Trade payables	088		3.198.172
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	1.563.205
D) SHORT TERM LIABILITIES (094 do 105)	093	513.478.118	518.724.642
1. Liabilities to related parties	094
2. Commitments for loans, deposits, etc	095	1.145.000	7.936.985
3. Liabilities to banks and other financial institutions	096	238.817.578	228.922.980
4. Liabilities for advances	097	94.659.904	77.235.033
5. Trade payables	098	156.084.720	169.571.567
6. Commitments on securities	099
7. Liabilities to companies in which are participating interests	100	32.480	1.932.140
8. Liabilities towards employees	101	8.624.454	9.819.301
9. Liabilities for taxes, contributions and other benefits	102	11.060.608	14.308.009
10. Liabilities to share in the result	103	27.856	5.263.331
11. Amount based on fixed assets intended to sale	104
12. Other short-term liabilities	105	3.025.518	3.735.296
E) DEFERRED PAYMENT OF COSTS AND FUTURE INCOME	106	56.030.472	39.428.795
F) TOTAL LIABILITIES (062+079+083+093+106)	107	1.536.431.037	1.523.232.065
G) OUT-OF BALANCE ITEMS	108	16.699.991	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	702.796.528	659.603.933
2. Ascribed to minority interest	110	9.257	2.534

2. Profit and loss account

in period from 01.01.2014. till 30.09.2014. PROFIT AND LOSS ACCOUNT

ITEM Preceding year Current year ind. Cumulative Quarter Cumulative Quarter 1 2 3 4 5 6 I. OPERATING TURNOVER (112+113) 111 608.573.611 205.060.699 623.279.024 237.701.775 1. Income from sales 112 594.164.377 200.954.427 608.099.751 235.421.623 2. Other operating income 113 14.409.234 4.106.272 15.179.273 2.280.152 II. OPERATING CHARGES (115+116+120+124+125+126+129+130) 114 604.199.211 205.696.425 624.889.611 233.104.316 1. Changes in the value of inventories of work in progress and finished goods 115 2.382.027 636.514 -742.685 -6.634.768 2. Material charges (117 up to 119) 116 403.663.290 141.966.021 380.539.667 174.486.033 a) Costs of raw materials and consumables 117 339.887.110 117.466.489 323.075.503 150.193.895 b) Costs of sales 118 10.113.207 1.667.455 17.235.310 11.474.871 c) Other external charges 119 53.662.973 22.832.077 40.228.854 12.817.267 3. Staff costs (121 up to 123) 120 112.647.206 38.480.114 128.747.110 41.834.821 a) Salaries and wages 121 70.164.520 23.902.086 80.063.829 25.434.997 122 b) Costs of taxes and social security 22.271.425 7.731.881 26.156.115 9.213.416 123 c) Duties on wages 20.211.261 6.846.147 22.527.166 7.186.408 4. Depreciation 124 37.479.143 12.808.321 41.258.770 13.704.674 5. Other costs 125 44.083.093 10.423.610 70.246.002 8.574.615 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 3.944.452 1.381.845 4.840.747 III. FINANCIAL INCOME (132 up to 136) 131 32.740.471 26.031.163 37.952.707 11.621.189 132 1. Interests, exchange rate differenc, dividends with affiliates 11.819.260 11.489.524 21.870.339 8.105.442 2. Interests, exch. rate differenc., dividends with non-affiliates 133 13.950.553 12.292.097 9.917.226 1.321.900 3. Part of income from affiliates and participated interests 134 6.970.658 2.249.542 6.165.142 2.193.847 4. Non-realized financial income 135 5. Other financial income 136 IV. FINANCIAL CHARGES (138 up to 141) 137 39.887.800 29.068.017 58.098.220 1. Interests, exchange rate differenc, dividends with affiliates 138 11.708.259 11.366.122 27.906.945 2. Interests, exch. rate differenc., dividends with non-affiliates 139 28.179.541 17.701.895 29.892.123 11.228.655 3. Non-realized financial charges 140 141 4. Other financial charges 299.152 V. SHARE OF PROFIT FROM ASSOCIATED COMPANIES 142 26.330.501 9.170.172 31.799.464 9.777.341 VI. SHARE OF LOSS FROM ASSOCIATED COMPANIES 143 5.042.925 1.232.889 VII. EXTRAORDINARY – OTHER INCOME 144 VIII. EXTRAORDINARY – OTHER CHARGES 145 IX. TOTAL INCOME (111+131+142 + 144) 146 667.644.583 240.262.034 693.031.195 259.100.305 X. TOTAL CHARGES (114+137+143 + 145) 147 644.087.011 234.764.442 688.030.756 257.479.739 XI. PROFIT OR LOSS BEFORE TAXATION (146-147) 148 23.557.572 5.497.592 5.000.439 1.620.566 149 1. Profit before taxation (146-147) 23.557.572 5.497.592 5.000.439 1.620.566 2. Loss before taxation (147-146) 150 0 0 0 0 XII. PROFIT TAX 151 30.230 22.003 27.221 -53.690 XIII. PROFIT OR LOSS FOR THE PERIOD (148-151) 152 23.527.342 5.475.589 4.973.218 1.674.256 1. PROFIT FOR THE PERIOD (149-151) 153 23.527.342 5.475.589 4.973.218 1.674.256 154 2. LOSS FOR THE PERIOD (151-148) 0 0 0 0	Taxpayer: GROUP AD PLASTIK
		AOP





















					1.138.941






					23.142.534
					11.828.570


					85.309

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	23.528.352	5.475.818	4.979.004	1.674.905
2. Attributable to minority interests	156	-1.010	-229	-5.786	-649
Report for other comprehensive income (only for the taxpayer applying IFRS)
I. PROFIT OR LOSS FOR THE CURRENT PERIOD (= 152)	157	23.527.342	5.475.589	4.973.218	1.674.256
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	23.527.342	5.475.589	4.973.218	1.674.256
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	23.528.352	5.475.818	4.979.004	1.674.905
2. Attributable to minority interests	170	-1.010	-229	-5.786	-649

CASH FLOW REPORT – Indirect method in period from 01.01.2014. till 30.09.2014.
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	23.557.572	5.000.439
2. Depreciation	002	37.479.143	41.258.770
3. Increase of current liabilities	003	136.274.376	16.071.405
4. Decrease of current receivables	004
5. Decrease in stocks	005
6. Other increase of cash flow	006	2.129.069	1.460.840
I. Total increase of cash flow from operating activities (001 - 006)	007	199.440.160	63.791.454
1. Decrease of current liabilities	008
2. Increase of current receivables	009	85.053.799	11.326.715
3. Increase in stocks	010	6.498.470	16.439.170
4. Other decrease of cash flow	011
II. Total decrease of cash flow from operating activities (008 – 011)	012	91.552.269	27.765.885

A1) NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	013	107.887.891	36.025.569
A2) NET DECREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	014	0	0
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	11.327.837	23.720.455
5. Other cash inflows from investment activities	019
III. Total cash inflows from investment activities (015-019)	020	11.327.837	23.720.455
1. Cash expenditures for purchase of fixed tangible and intangible assets	021	165.345.528	60.958.950
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	165.345.528	60.958.950
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	154.017.691	37.238.495
CASH FLOW FROM FINANCIAL ACTIVITIES
1. Cash inflows from issuing ownership and debt financial instruments	027
2. Cash inflows from credit principal, debentures, loans and other borrowings	028	139.324.278	56.477.947
3. Other inflows from financial activities	029
V. Total cash inflows from financial activities (027-029)	030	139.324.278	56.477.947
1. Cash expenditures for the payment of credit principal and debentures	031
2. Cash expenditures for the payment of dividends	032	33.649.178	28.107.101
3. Cash expenditures for financial lease	033
4. Cash expenditures for repurchase of own shares	034
5. Other cash expenditures from financial activities	035	43.047.040	48.199.757
VI. Total cash expenditures from financial activities (031-035)	036	76.696.218	76.306.858

C1) NET INCREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (030-036)	037	62.628.060	0
C2) NET DECREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (036-030)	038	0	19.828.911
Total cash flow increase (013-014+025-026+037-038)	039	16.498.260	0
Total cash flow decrease (014-013+026-025+038-037)	040	0	21.041.837
Cash and cash equivalents at the beginning of the period	041	12.559.745	28.943.068
Cash and cash equivalents increase	042	16.498.260
Cash and cash equivalents decrease	043		21.041.837
Cash and cash equivalents at the end of the period	044	29.058.005	7.901.231

REPORT ON CHANGES TO CAPITAL
for period 1.1.2014 till	30.9.2014
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	183.513.558	183.527.951
3. Reserves from profit		003	21.637.456	26.681.972
4. Retained profit or loss carried over		004	36.601.695	14.273.787
5. Current year profit or loss		005	37.178.882	4.979.004
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	709.075.344	659.606.467
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	709.058.433	659.603.933
17b. Ascribed to minority interest		019	16.911	2.534

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

Appendix 1
Reporting period:				01.01.2014.		till	30.09.2014.
						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:	1.116
	Consolidated report:	NO					(at the end of the trimester) NCA code:	2932

	Names of consolidation subjects (according to IMSF):				Seat:		REG.NO.:












	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)

AOP ind. Preceding year Current year 2 3 4 001 002 844.652.339 846.788.038 003 58.817.539 72.967.855 004 22.063.521 17.540.665 005 3.675.095 2.470.350 006 007 008 33.078.923 52.956.840 009 010 500.584.584 499.398.061 011 139.976.599 139.976.599 012 163.569.130 161.000.219 013 89.953.041 136.853.545 014 8.416.379 6.802.786 015 016 018 019 027 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 BALANCE SHEET as at 30.09.2014. 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 8. Other tangible assets 1. Land 2. Buildings 3. Plants and machinery 4. Tools, plant & office inventory, furniture & transport means 3. Participating interests (shares) 4. Given loans to companies in which exist participating interests 5. Investments in securities 6. Other loan, deposits etc 9. Investment in real estate III. FIXED FINANCIAL ASSETS (021 up to 028) 1. Shares in affiliated undertakings 2. Loans to affiliated undertakings 7. Other fixed financial assets

017 98.669.435 54.764.912 020 284.719.815 273.891.721 021 89.694.982 75.768.982 022 78.039.462 83.720.958 023 52.311.385 51.975.442 024 50.102.505 50.102.505 025 63.855 63.855 026 14.507.626 12.259.979 028 029 0 0 030 031 032 033 530.401 530.401 034 354.831.285 474.370.303 035 37.351.285 36.927.108 036 23.857.478 21.785.767 037 1.853.641 5.700.641 038 11.064.194 8.939.993 039 575.972 500.707 040 041 042 043 259.861.187 386.136.229 044 144.490.516 203.498.259 045 55.959.929 118.324.188 046 11.917.016 29.326.466 047 537.181 1.073.944 048 7.362.338 3.761.358 049 39.594.207 30.152.014 050 43.087.764 48.866.922 051 052 26.284.708 29.769.469 053 054 16.793.680 16.793.680 055 056 9.376 2.303.773 057 058 14.531.049 2.440.044 059 119.103.092 79.859.892 2. Receivables from sales on credit 3. Other receivables V. DEFFERED TAX ASSETS C) CURRENT ASSETS (035+043+050+058) 8. Investment stated in equity method IV. RECEIVABLES (030 up to 032) 1. Receivables from associated undertakings 4. Commercial goods 5. Advances for inventories 6. Long term assets held for sale 7. Biological assets I. INVENTORY (036 up to 042) 1. Materials and supplies 2. Work in progress 3. Finished goods 4. Receivables from employees and members of the business 5. Receivables from government and other institutions 6. Other receivables III. CURRENT FINANCIAL ASSETS (051 up to 057) II. RECEIVABLES (044 up to 049) 1. Receivables from associated undertakings 2. Trade receivables 3. Receivables from participating companies 5. Investments in to securities 6. Other loan, deposits etc 7. Other financial assets IV. CASH AT BANK AND IN HAND 1. Shares in affiliated undertakings 2. Loans to affiliates 3. Participating interests (shares) 4. Given loans to companies in which exist participating interests D) PREPAYMENTA AND ACCRUED INCOME

E) TOTAL ASSETS (001+002+034+059)

F) OUT-OF-BALANCE ITEMS

060 1.318.586.716 1.401.018.233 061 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	683.572.072
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	26.666.540
1. Legal reserves	066	6.128.852	6.128.852
2. Reserves for own shares	067	4.753.103	3.400.600
3. Own stocks and shares (deductible item)	068	4.753.103	3.400.600
4. Statutory reserves	069
5. Other reserves	070	24.014.599	20.537.688
IV. REVALUATION RESERVES	071	10.185.353	10.185.353
V. RETAINED EARNINGS OR LOSS BROUGHT FORWARD (073-074)	072	0	0
1. Retained earnings	073
2. Loss brought forward	074
VI. CURRENT YEAR PROFIT OR LOSS (076-077)	075	42.519.724	43.685.982
1. Current year profit	076	42.519.724	43.685.982
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	233.480.457
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	225.525.948
4. Liabilities for advances	087
5. Trade payables	088		3.198.172
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	461.389.329
1. Liabilities to related parties	094	7.212.655	29.612.105
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	219.442.759
4. Liabilities for advances	097	70.943.829	51.598.911
5. Trade payables	098	107.064.333	139.546.081
6. Commitments on securities	099
7. Liabilities to companies in which are participating interests	100	32.480
8. Liabilities towards employees	101	5.630.417	7.119.798
9. Liabilities for taxes, contributions and other benefits	102	3.258.615	5.464.532
10. Liabilities to share in the result	103	27.856	5.263.331
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	16.573.481
F) TOTAL LIABILITIES (062+079+083+093+106)	107	1.318.586.716	1.401.018.233
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

PROFIT AND LOSS ACCOUNT

in period from 01.01.2014. till 30.09.2014.

Taxpayer: AD Plastik d.d.
ITEM	AOP ind.	Preceding year		Current year
		Cumulative	Quarter	Cumulative	Quarter
1	2	3	4	5	6
I. OPERATING TURNOVER (112+113)	111	380.020.597	115.707.838	414.754.479	153.575.121
1. Income from sales	112	376.141.693	115.062.693	406.915.021	153.240.811
2. Other operating income	113	3.878.904	645.145	7.839.458	334.310
II. OPERATING CHARGES (115+116+120+124+125+126+129+130)	114	375.108.479	119.290.688	400.962.963	145.296.298
1. Changes in the value of inventories of work in progress and finished goods	115	2.820.279	694.538	-1.727.471	-4.413.190
2. Material charges (117 up to 119)	116	209.665.541	40.611.917	234.945.181	93.941.164
a) Costs of raw materials and consumables	117	146.799.920	25.964.216	175.573.632	68.441.485
b) Costs of sales	118	36.726.374	7.334.490	34.880.046	16.716.603
c) Other external charges	119	26.139.247	7.313.211	24.491.503	8.783.076
3. Staff costs (121 up to 123)	120	67.179.424	23.753.710	79.039.857	28.509.566
a) Salaries and wages	121	40.307.654	14.252.226	47.423.914	17.105.739
b) Costs of taxes and social security	122	16.794.856	5.938.427	19.759.964	7.127.391
c) Duties on wages	123	10.076.914	3.563.057	11.855.979	4.276.436
4. Depreciation	124	22.132.611	7.482.835	22.727.576	7.759.914
5. Other costs	125	73.283.740	46.738.418	64.143.864	19.186.546
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	26.884	9.270	1.833.956	312.298
III. FINANCIAL INCOME (132 up to 136)	131	47.673.619	17.106.300	54.253.334	8.753.353
1. Interests, exchange rate differenc, dividends with affiliates	132	6.949.235	4.656.336	6.369.295	3.566.161
2. Interests, exch. rate differenc., dividends with non-affiliates	133	10.643.899	9.044.931	732.015	-3.191.678
3. Part of income from affiliates and participated interests	134	30.080.485	3.405.033	47.152.024	8.378.870
4. Non-realized financial income	135
5. Other financial income	136
IV. FINANCIAL CHARGES (138 up to 141)	137	23.654.345	15.993.849	24.347.601	13.126.233
1. Interests, exchange rate differenc, dividends with affiliates	138	3.955.792	3.337.919	7.301.006	6.849.718
2. Interests, exch. rate differenc., dividends with non-affiliates	139	19.698.553	12.655.930	17.046.595	6.276.515
3. Non-realized financial charges	140
4. Other financial charges	141
V. SHARE OF PROFIT FROM ASSOCIATED COMPANIES	142
VI. SHARE OF LOSS FROM ASSOCIATED COMPANIES	143
VII. EXTRAORDINARY – OTHER INCOME	144
VIII. EXTRAORDINARY – OTHER CHARGES	145
IX. TOTAL INCOME (111+131+142 + 144)	146	427.694.216	132.814.138	469.007.813	162.328.474
X. TOTAL CHARGES (114+137+143 + 145)	147	398.762.824	135.284.537	425.310.564	158.422.531
XI. PROFIT OR LOSS BEFORE TAXATION (146-147)	148	28.931.392	-2.470.399	43.697.249	3.905.943
1. Profit before taxation (146-147)	149	28.931.392	0	43.697.249	3.905.943
2. Loss before taxation (147-146)	150	0	2.470.399	0	0
XII. PROFIT TAX	151			11.267	11.267
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151)	152	28.931.392	-2.470.399	43.685.982	3.894.676
1. PROFIT FOR THE PERIOD (149-151)	153	28.931.392	0	43.685.982	3.894.676
2. LOSS FOR THE PERIOD (151-148)	154	0	2.470.399	0	0

CASH FLOW REPORT – Indirect method
in period from 01.01.2014. till 30.09.2014.
Taxpayer: AD Plastik d.d.	AOP
ITEM	ind.	Preceding year	Current year
1	2	3	4
CASH FLOW FROM OPERATING ACTIVITIES
1. Profit before taxation	001	28.931.392	43.697.249
2. Depreciation	002	22.132.611	22.727.576
3. Increase of current liabilities	003	88.346.789	84.084.488
4. Decrease of current receivables	004
5. Decrease in stocks
	005	2.263.021	424.177
6. Other increase of cash flow	006
I. Total increase of cash flow from operating activities (001 - 006)	007	141.673.813	150.933.490
1. Decrease of current liabilities	008
2. Increase of current receivables	009	69.306.839	116.759.139
3. Increase in stocks	010
4. Other decrease of cash flow	011
II. Total decrease of cash flow from operating activities (008 – 011)	012	69.306.839	116.759.139
A1) NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	013	72.366.974	34.174.351
A2) NET DECREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	014	0	0
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	7.895.694	6.006.842
4. Cash inflows from dividends	018	11.327.837	23.720.455
5. Other cash inflows from investment activities	019
III. Total cash inflows from investment activities (015-019)	020	19.223.531	29.727.297
1. Cash expenditures for purchase of fixed tangible and intangible assets	021	101.764.595	35.691.369
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	101.764.595	35.691.369
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	82.541.064	5.964.072
CASH FLOW FROM FINANCIAL ACTIVITIES
1. Cash inflows from issuing ownership and debt financial instruments	027
2. Cash inflows from credit principal, debentures, loans and other borrowings	028	87.998.001	33.813.719
3. Other inflows from financial activities	029
V. Total cash inflows from financial activities (027-029)	030	87.998.001	33.813.719
1. Cash expenditures for the payment of credit principal and debentures	031
2. Cash expenditures for the payment of dividends	032	33.649.178	28.107.101
3. Cash expenditures for financial lease	033
4. Cash expenditures for repurchase of own shares	034
5. Other cash expenditures from financial activities	035	28.289.144	46.007.902
VI. Total cash expenditures from financial activities (031-035)	036	61.938.322	74.115.003
C1) NET INCREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (030-036)	037	26.059.679	0
C2) NET DECREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (036-030)	038	0	40.301.284
Total cash flow increase (013-014+025-026+037-038)	039	15.885.589	0
Total cash flow decrease (014-013+026-025+038-037)	040	0	12.091.005
Cash and cash equivalents at the beginning of the period	041	6.353.591	14.531.049
Cash and cash equivalents increase	042	15.885.589
Cash and cash equivalents decrease	043		12.091.005
Cash and cash equivalents at the end of the period	044	22.239.180	2.440.044

8. Report on changes to capital

REPORT ON CHANGES TO CAPITAL
for period 1.1.2014 till 30.9.2014
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	37.299.933	26.666.540
4. Retained profit or loss carried over	004		0
5. Current year profit or loss	005	28.931.392	43.685.982
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	679.450.875	683.572.072
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. - 30.09.2014, 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_2014-10-30_33946cc1-49d3-4c57-9315-63e4634a9626.pdf