AD Plastik d.d.

Quarterly Report • Jul 29, 2015

Management Interim Report of AD Plastik Group and the company AD Plastik Inc. Solin for the first half of 2015

Solin, July 2015

Contents

		page
	a) Managment Interim Report of AD Plastik Group and the Company AD Plastik Inc. Solin for the period 01.01.-30.06.2015	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)	20
8.	Report on changes to capital	21
	d) Statement of the person responsible for drafting the financial reports	22

a) Managment Interim Report of AD Plastik Group and the Company AD Plastik Inc. Solin for the period 01.01.-30.06.2015

Indicator	01.01.- 30.06.2015	01.01.- 30.06.2014
Sales revenue (thousands of HRK)	517.813	372.678
EBITDA (thousands of HRK)	62.302	21.346
Net profit (thousands of HRK)	27.007	3.299

Financial results of the Group for the period 01.01. – 30.06.2015

In the reporting period AD Plastik Group (hereinafter: ADP Group) recorded an increase in sales revenue of 38,9% and an increase in EBITDA of 191,9% compared to the same period of the previous year.

Positive trends of growth in revenues and profitability in the first quarter continued also in the second quarter, primarily in Croatia. Thus, in the reporting period was recorded sales revenue growth in the parent company of 52,6% compared to the same period of the previous year. Almost all revenues of the parent company were realized abroad.

On the other hand, despite the general decline in sales on the Russian market higher than 30%, ADP Group generated revenues at the level of the previous year.

For ADP Group, this is a first year of complete production of components for new models of vehicles which is reflected in revenue growth in 2015 according to previous announcements.

A significant increase in profitability in ADP Group occurred due to:

• Revenue growth
• Improvement of overall cost-effectiveness,
• Reduction of the share of fixed costs in the structure of costs per unit of product due to an increase in capacity utilization in Croatia,

Credit indebtedness of ADP Group on 30.06.2015 amounted to 447,8 milion HRK (the highest level of indebtedness amounted to 510 milion HRK at the end of 3Q/14, that is bank debt was reduced by 62,2 million HRK in nine months) which represents a reduction in loan liabilities of 45,2 million HRK compared to the end of last year.

Expectations in 2015

Results of the first half of year confirm the planned revenue growth of ADP Group in 2015 and we still expect a revenue growth of at least 12% this year. As for profitability, we expect the EBITDA margin of at least 11% in 2015 in total.

With the aim of getting a clearer picture of bussines of ADP Group, we prepared abbreviated consolidated profit and loss account of ADP Group for the first half of 2014 and 2015 with consolidated profit and loss account of associated companies Euro APS, Romania and FADP, Russia, in which AD Plastik Inc. has 50% that is 40% of ownership.

	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/2015	1H/2014
OPERATING REVENUES	761.729	648.048
OPERATING EXPENSES	715.235	626.911
Material expenses	473.417	373.803
Staff costs	121.059	118.617
Amortization	42.695	36.319
Other expenses	78.064	98.173
FINANCIAL INCOME	65.009	23.081
FINANCIAL EXPENSES	79.812	36.476
TOTAL REVENUE	826.738	671.129
TOTAL EXPENSES	795.047	663.387
Profit before taxation	31.691	7.742
Profit tax	4.684	4.443
PROFIT FOR THE PERIOD	27.007	3.299

Table 2. Profit and loss account of AD Plastik Group with consolidation of belonging part of ownership in Euro APS and FADP for the first hal of 2014 and 2015 in thousands of HRK

As seen from Table 2., operating revenues of ADP Group with the consolidated correspoding part of ownership in Euro APS and FADP recorded a growth of 17,5% in the first half this year compared to the same period of the previous year. In the same period EBITDA recorded a qrowth of 55,2% compared to the same period of the previous year and amounted in total 89,2 milion HRK. Total loan liabilities of ADP Group with the corresponding part of ownership in Euro APS and FADP are equal to total loan liabilities of ADP Group without consolidation of associated companies. Associated companies do not have financial loan liabilities to outside entities, except liabilities per loans obtained from the owners (Faurecia and AD Plastik).

Below we are presenting the most important events for the first quarter of 2015 per companies of AD Plastik Group.

AD Plastik Inc, Solin

In the reporting period, the company generated sales revenues growth of over 50% compared to the previous year with a different range of products compared to the plan. In the observed period the phase of production running in was completed and the costs were optimized. There is an ongoing continuous improvement aimed at raising the profitability in cooperation with our customers.

High capacity utilization along with optimization of costs reflected positively on growth in profitability compared to the same period last year.

ADP Mladenovac, Serbia

ADP Mladenovac has achieved a sales revenue growth of 97% compared to the same period of the previous year.

Particular emphasis is placed on the growth of the program FCA (Fiat Chrysler) which has significantly increased due to extension of the assortment on grab handles and the program Revoz which was launched in second quarter of 2014.

During the reporting period started the production by using injection molding technology which rounded up the complete grab handles production process for Fiat and Renault – from injection molding to assembly.

AO AD Plastik (ZAO PHR, Russia)

In late June the company name ZAO PHR was changed to AO AD Plastik. The revenues generated in the first half of the year are higher than the revenues realized in the same period last year. The largest impact on growth in sales was achieved due to growth in sales regarding programs Avtovaz and Renault. Monthly updating of sales prices in accordance with the exchange rate fluctuations is still being applied. Along with revenue growth and improvements of cost efficiency, this effected positively on the operating results of the company in the first half of 2015.

The Company has achieved positive financial results in the first half of 2015, in contrast to the same period last year.

ADP Kaluga, Russia

In the first half there was a decline in revenues compared to the revenues realized in the same period last year. The main reason for the decrease in revenues is low capacity utilization of the plant, as the result of the delay in start of production of a vehicle Renault Duster phasis 2.

The company realized a negative financial result in the reporting period, but better than in the same period last year.

EURO APS, Romania

In the reporting period was achieved a stable production and sales compared to the planned values with a high share of serial deliveries of the models Sandero and Duster and deliveries to Morocco, Algeria, Iran and other markets. At the same time, by optimizing the production, it was achieved a result better than the planned one.

FADP Luga, Russia

Achieved sales has exceeded the plan by 7%, as a result of changes in exchange rates and adjustments in selling prices. The activities of plant preparation for the acceptance of new projects (interior positions for the vehicles Ford Fiesta an Ecosport, and Nissan X-trail) and the increase in capacity utilization of the company are in process.

On 30.06.2015 the Group had 3.026 employees, out of that 1.239 in the parent company AD Plastik Inc. Solin.

In the Group`s balance sheet positions relative to December 31st, 2014 the greatest changes were recorded in these positions:

• (AOP 023) Participating interests (shares) (decrease of 30,0 milion HRK) due to decision on the payment of dividends;;
• (AOP 045) Trade receivables (decrease of 13,6 milion HRK) mainly due to the finalization of projects and charging of development activities from customers;
• (AOP 046) Receivables from participating companies (increase of 26,1 milion HRK) mainly due to the calculation of Euro APS dividend;
• (AOP 049) Other receivables (increase of 25 milion HRK) largely because of advances given to manufacturers of tools;
• (AOP 086 i 096) Short-term and long-term debts towards banks and other financial institutions (net effect of reduction 45,2 milion HRK) - due to the closure of part of the loans that were related to the financing of tool making and reprogramming of part of short-term loans into longterm;
• (AOP 098) Accounts payable (decrease of 29,5 milion HRK) due to a completion of a larger part of investments;

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

	Appendix 1
Reporting period:				01.01.2015.		till	30.06.2015.
						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: adplastik@adplastik.hr
	Internet address: www.adplastik.hr
	Municipality/city code and	406	Solin
	name:
	County code and name:	17	Splitsko-dalmatinska				No. of employees:	3.026
	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
			ADP d.o.o.			Mladenovac, Serbia	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: marica.jakelic@adplastik.hr
	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)

1. Balance sheet Assets

BALANCE SHEET
as at 30.06.2015.
Taxpayer: GROUP AD PLASTIK ITEM	AOP	Preceding year	Current year
1	ind. 2	3	4
ASSETS
A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID	001
B) FIXED ASSETS (003+010+020+029+033)	002	1.091.023.928	1.047.094.069
I. INTANGIBLE ASSETS (004 up to 009)	003	152.137.861	148.008.218
1. Development costs	004	45.408.879	64.909.290
2. Concessions, patents, licenses, trademarks, softwares and other rights	005	4.229.375	3.495.215
3. Goodwill	006	25.389.920	25.389.920
4. Advances for purchase of intangible assets	007	0
5. Intangible assets in preparation	008	71.445.025	48.742.632
6. 6. Other intangible assets	009	5.664.662	5.471.161
II. TANGIBLE ASSETS (011 up to 019) 1. Land	010 011	755.636.053	756.640.426
2. Buildings	012	142.392.044 235.692.502	141.464.129 237.826.046
3. Plants and machinery	013	266.122.878	261.052.936
4. Tools, plant & office inventory, furniture & transport means	014	16.737.211	13.737.893
5. Biological assets	015	0
6. Payments on account for tangible assets	016	7.873.562	52.992
7. Tangible assets in preparation	017	85.450.223	97.204.375
8. Other tangible assets	018	1.367.633	5.302.055
9. Investment in real estate	019	0
III. FIXED FINANCIAL ASSETS (021 up to 028)	020	148.428.985	122.680.783
1. Shares in affiliated undertakings	021	0
2. Loans to affiliated undertakings	022	0
3. Participating interests (shares)	023	92.666.032	62.618.874
4. Given loans to companies in which exist participating interests	024	44.155.524	48.534.480
5. Investments in securities	025 026	63.855	63.855
6. Other loan, deposits etc 7. Other fixed financial assets	027	11.543.574 0	11.463.574
8. Investment stated in equity method	028
IV. RECEIVABLES (030 up to 032)	029	8.459.021	9.418.977
1. Receivables from associated undertakings	030		0
2. Receivables from sales on credit	031		0
3. Other receivables	032	8.459.021	9.418.977
V. DEFFERED TAX ASSETS	033	26.362.008	10.345.665
C) CURRENT ASSETS (035+043+050+058)	034	370.459.572	396.119.219
I. INVENTORY (036 up to 042)	035	94.314.949	95.454.916
1. Materials and supplies	036	67.176.173	67.136.981
2. Work in progress	037	6.646.583	7.567.533
3. Finished goods	038	18.787.006	16.759.033
4. Commercial goods 5. Advances for inventories	039 040	1.705.187 0	3.991.369 0
6. Long term assets held for sale	041
7. Biological assets	042
II. RECEIVABLES (044 up to 049)	043	255.937.108	288.856.180
1. Receivables from associated undertakings	044	0
2. Trade receivables	045	201.714.508	188.108.845
3. Receivables from participating companies	046	5.693.529	31.767.627
4. Receivables from employees and members of the business	047	482.178	628.726
5. Receivables from government and other institutions	048	18.097.415	13.401.867
6. Other receivables	049	29.949.478	54.949.115
III. CURRENT FINANCIAL ASSETS (051 up to 057)	050	12.401.924	3.286.164
1. Shares in affiliated undertakings	051
2. Loans to affiliates	052
3. Participating interests (shares) 4. Given loans to companies in which exist participating interests	053 054
5. Investments in to securities	055
6. Other loan, deposits etc	056	3.209.419	3.286.164
7. Other financial assets	057	9.192.505	0
IV. CASH AT BANK AND IN HAND	058	7.805.591	8.521.959
D) PREPAYMENTA AND ACCRUED INCOME	059	85.289.203	87.303.507
E) TOTAL ASSETS (001+002+034+059)	060	1.546.772.703	1.530.516.795
F) OUT-OF-BALANCE ITEMS	061	18.790.339	24.823.114

LIABILITIES
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	630.631.677	677.031.870
I. SUBSCRIBED SHARE CAPITAL	063	419.958.400	419.958.400
II. CAPITAL RESERVES	064	183.513.200	183.512.721
III. RESERVES FROM GAIN (066+067-068+069+070)	065	32.062.079	32.062.459
1. Legal reserves	066	6.140.129	6.140.509
2. Reserves for own shares	067	2.945.290	2.945.290
3. Own stocks and shares (deductible item)	068	2.945.290	2.945.290
4. Statutory reserves	069	0	0
5. Other reserves	070	25.921.950	25.921.950
IV. REVALUATION RESERVES	071	-22.222.998	-18.213.827
V. RETAINED EARNINGS OR LOSS BROUGHT FORWARD (073-074)	072	12.397.932	32.708.084
1. Retained earnings	073	12.397.932	32.708.084
2. Loss brought forward	074
VI. CURRENT YEAR PROFIT OR LOSS (076-077)	075	4.929.914	27.003.856
1. Current year profit	076	4.929.914	27.003.856
2. Current year loss	077
VII. MINOR INTEREST	078	-6.850	177
B) PROVISIONS (080 up to 082)	079	6.400.943	7.040.289
1. Provisions for pensions, severance pay and similar obligations	080	687.919	687.919
2. Provisions for tax liabilities	081		0
3. Other provisions	082	5.713.024	6.352.370
C) LONG TERM LIABILITIES (084 up to 092)	083	251.294.635	372.298.634
1. Liabilities to related parties	084
2. Commitments for loans, deposits, etc	085	0
3. Liabilities to banks and other financial institutions	086	212.344.188	339.528.451
4. Liabilities for advances	087
5. Trade payables	088	26.238.997	31.653.576
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	12.711.450	1.116.607
D) SHORT TERM LIABILITIES (094 do 105)	093	641.580.171	461.510.147
1. Liabilities to related parties	094
2. Commitments for loans, deposits, etc	095	4.623.823	5.319.053
3. Liabilities to banks and other financial institutions	096	280.719.131	108.320.732
4. Liabilities for advances	097	57.224.240	77.249.402
5. Trade payables	098	270.424.546	240.900.947
6. Commitments on securities	099
7. Liabilities to companies in which are participating interests	100	1.674.486	194.103
8. Liabilities towards employees	101	10.173.697	10.238.495
9. Liabilities for taxes, contributions and other benefits	102	11.618.292	12.803.537
10. Liabilities to share in the result	103	0
11. Amount based on fixed assets intended to sale	104		0
12. Other short-term liabilities	105	5.121.956	6.483.878
E) DEFERRED PAYMENT OF COSTS AND FUTURE INCOME	106	16.865.277	12.635.855
F) TOTAL LIABILITIES (062+079+083+093+106)	107	1.546.772.703	1.530.516.795
G) OUT-OF BALANCE ITEMS	108	18.790.339	24.823.114
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	630.638.527	677.031.693
2. Ascribed to minority interest	110	-6.850	177

2. Profit and loss account

in period from 01.01.2015. till 30.06.2015. PROFIT AND LOSS ACCOUNT

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	385.577.249	214.860.352	524.863.979	263.459.220
1. Income from sales	112	372.678.128	205.969.669	517.813.200	258.293.858
2. Other operating income	113	12.899.121	8.890.683	7.050.779	5.165.362
II. OPERATING CHARGES (115+116+120+124+125+126+129+130)	114	391.785.295	209.695.545	498.501.102	251.302.470
1. Changes in the value of inventories of work in progress and finished goods	115	5.892.083	194.780	2.064.463	-2.648.232
2. Material charges (117 up to 119)	116	206.053.634	104.022.543	325.333.382	164.786.973
a) Costs of raw materials and consumables	117	172.881.608	86.742.926	265.165.446	133.183.309
b) Costs of sales	118	5.760.439	1.927.644	26.192.502	12.746.116
c) Other external charges	119	27.411.587	15.351.973	33.975.435	18.857.549
3. Staff costs (121 up to 123)	120	86.912.289	46.466.773	89.784.450	45.195.335
a) Salaries and wages	121	54.628.832	29.303.381	55.194.201	27.725.052
b) Costs of taxes and social security	122	16.942.699	8.926.892	19.317.904	9.771.274
c) Duties on wages	123	15.340.758	8.236.500	15.272.345	7.699.009
4. Depreciation	124	27.554.096	14.133.123	35.940.285	18.168.731
5. Other costs	125	61.671.387	43.545.800	40.234.533	22.294.892
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	3.701.806	1.332.526	5.143.989	3.504.771
III. FINANCIAL INCOME (132 up to 136)	131	26.331.518	22.521.199	69.582.764	29.525.191
1. Interests, exchange rate differenc, dividends with affiliates	132	13.764.897	12.253.753	46.644.538	19.985.912
2. Interests, exch. rate differenc., dividends with non-affiliates	133	8.595.326	7.034.321	18.327.706	6.930.051
3. Part of income from affiliates and participated interests	134	3.971.295	3.233.125	4.610.520	2.609.228
4. Non-realized financial income	135
5. Other financial income	136
IV. FINANCIAL CHARGES (138 up to 141)	137	34.955.686	24.070.383	80.865.692	36.505.395
1. Interests, exchange rate differenc, dividends with affiliates	138	16.078.375	13.647.025	49.443.053	20.163.487
2. Interests, exch. rate differenc., dividends with non-affiliates	139	18.663.468	10.289.249	31.101.689	16.101.236
3. Non-realized financial charges	140				0
4. Other financial charges	141	213.843	134.109	320.950	240.672
V. SHARE OF PROFIT FROM ASSOCIATED COMPANIES	142	22.022.123	10.167.892	23.788.156	13.527.052
VI. SHARE OF LOSS FROM ASSOCIATED COMPANIES	143	3.810.036	2.362.980	11.872.034	6.022.226
VII. EXTRAORDINARY – OTHER INCOME	144
VIII. EXTRAORDINARY – OTHER CHARGES	145
IX. TOTAL INCOME (111+131+142 + 144)	146	433.930.890	247.549.443	618.234.899	306.511.463
X. TOTAL CHARGES (114+137+143 + 145)	147	430.551.017	236.128.908	591.238.828	293.830.091
XI. PROFIT OR LOSS BEFORE TAXATION (146-147)	148	3.379.873	11.420.535	26.996.071	12.681.372
1. Profit before taxation (146-147)	149	3.379.873	11.420.535	26.996.071	12.681.372
2. Loss before taxation (147-146)	150	0	0	0	0
XII. PROFIT TAX	151			-11.265	-11.265
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151)	152	3.379.873	11.420.535	27.007.336	12.692.637
1. PROFIT FOR THE PERIOD (149-151)	153	3.379.873	11.420.535	27.007.336	12.692.637
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	3.304.099	11.403.503	27.003.856	12.691.711
2. Attributable to minority interests	156	-5.137	-1.818	3.480	926
Report for other comprehensive income (only for the taxpayer applying IFRS)
I. PROFIT OR LOSS FOR THE CURRENT PERIOD (= 152)	157	3.379.873	11.420.535	27.007.336	12.692.637
II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAXATION (159 up to 165)	158	0	0	31.456.558	28.069.635
1. Exchange differences on translation of foreign operations	159			34.004.950	98.104.613
2. Movements in revaluation reserves of fixed and intangible assets	160			-2.548.392	-70.034.978
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			6.291.820	5.654.803
IV. OTHER COMPREHENSIVE NET PROFIT OR LOSS	167	0	0	25.164.738	22.414.832
V. OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD (157+167)	168	3.379.873	11.420.535	52.172.074	35.107.469
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	3.304.099	11.403.503	52.385.804	35.319.807
2. Attributable to minority interests	170	-5.137	-1.818	9.770	11.162

1. Cash flow (indirect method)

CASH FLOW REPORT – Indirect method

in period from 01.01.2015. till 30.06.2015.

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	3.379.873	26.996.071
2. Depreciation	002	27.554.096	35.940.285
3. Increase of current liabilities	003	23.641.264
4. Decrease of current receivables	004
5. Decrease in stocks	005
6. Other increase of cash flow	006	903.782	16.016.343
I. Total increase of cash flow from operating activities (001 - 006)	007	55.479.015	78.952.698
1. Decrease of current liabilities	008		11.261.701
2. Increase of current receivables	009	27.278.381	56.732.061
3. Increase in stocks	010	9.414.754	1.139.966
4. Other decrease of cash flow	011		959.956
II. Total decrease of cash flow from operating activities (008 – 011)	012	36.693.135	70.093.684
A1) NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	013	18.785.880	8.859.014
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		899.448
4. Cash inflows from dividends	018	17.524.772	20.899.237
5. Other cash inflows from investment activities	019	4.690.236	19.404.122
III. Total cash inflows from investment activities (015-019)	020	22.215.008	41.202.807
1. Cash expenditures for purchase of fixed tangible and intangible assets	021	51.949.914	32.815.015
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	51.949.914	32.815.015
B1) NET INCREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (020-024)	025	0	8.387.792
B2) NET DECREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (024-020)	026	29.734.906	0
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	30.321.641	125.820.803
3. Other inflows from financial activities	029	16.848.084	30.047.158
V. Total cash inflows from financial activities (027-029)	030	47.169.725	155.867.961
1. Cash expenditures for the payment of credit principal and debentures	031	32.123.198	172.398.399
2. Cash expenditures for the payment of dividends	032	11.687.788
3. Cash expenditures for financial lease	033
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	43.810.986	172.398.399
C1) NET INCREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (030-036)	037	3.358.739	0
C2) NET DECREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (036-030)	038	0	16.530.438
Total cash flow increase (013-014+025-026+037-038)	039	0	716.368
Total cash flow decrease (014-013+026-025+038-037)	040	7.590.287	0
Cash and cash equivalents at the beginning of the period	041	28.943.068	7.805.591
Cash and cash equivalents increase	042		716.368
Cash and cash equivalents decrease	043	7.590.287
Cash and cash equivalents at the end of the period	044	21.352.781	8.521.959

1. Report on changes to capital

		REPORT ON CHANGES TO CAPITAL
	for period	1.1.2015	till	30.6.2015
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	183.500.187	183.512.721
3. Reserves from profit					003	23.494.468	32.062.636
4. Retained profit or loss carried over					004	70.433.387	32.708.084
5. Current year profit or loss					005	3.304.099	27.003.856
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	-18.213.827
10. Total capital and reserves (AOP 001-009)					010	710.875.894	677.031.870
11.Exchange rate variations from net investments into foreign business operations					011		34.004.950
12.Current and deferred taxes (part)					012		-6.291.820
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		-2.548.392
17. Total capital increase or decrease (AOP 011 - 016)					017	0	25.164.738
17a. Ascribed to holders of the holders company capital					018	710.872.026	677.031.693
17b. Ascribed to minority interest					019	3.868	177

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

Appendix 1
Reporting period:				01.01.2015.		till	30.06.2015.
						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: adplastik@adplastik.hr
	Internet address: www.adplastik.hr
	Municipality/city code and	406	SOLIN
	name:
	County code and name:	17		SPLITSKO-DALMATINSKA			No. of employees:	1.239
	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: marica.jakelic@adplastik.hr
	Name and surname: Katija Klepo
				(person authorised for representation)
	Documentation for publishing:
	statements)						1. Financial statements (balance sheet, profit and loss statement, cash flow statement, changes in equity and notes to financial
	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 as at 30.06.2015.
Taxpayer: AD Plastik d.d. 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	1.050.229.721	1.009.887.919
I. INTANGIBLE ASSETS (004 up to 009)	003	95.024.732	91.059.380
1. Development costs	004	30.072.242	49.143.726
2. Concessions, patents, licenses, trademarks, softwares and other rights	005 006	2.084.689	1.484.414
3. Goodwill 4. Advances for purchase of intangible assets	007
5. Intangible assets in preparation	008	62.867.801	40.431.240
6. 6. Other intangible assets	009
II. TANGIBLE ASSETS (011 up to 019)	010	518.082.265	515.526.535
1. Land	011	139.976.599	139.976.599
2. Buildings	012	160.295.250	158.581.503
3. Plants and machinery	013	141.215.175	127.517.076
4. Tools, plant & office inventory, furniture & transport means	014	12.924.399	11.305.162
5. Biological assets	015
6. Payments on account for tangible assets	016
7. Tangible assets in preparation	017	63.670.842	78.146.195
8. Other tangible assets	018
9. Investment in real estate	019
III. FIXED FINANCIAL ASSETS (021 up to 028)	020	235.319.040	204.589.345
1. Shares in affiliated undertakings	021	44.376.244	44.376.245
2. Loans to affiliated undertakings	022 023	83.204.401	85.674.037
3. Participating interests (shares) 4. Given loans to companies in which exist participating interests	024	51.975.442 44.155.524	14.477.154 48.534.480
5. Investments in securities	025	63.855	63.855
6. Other loan, deposits etc	026	11.543.574	11.463.574
7. Other fixed financial assets	027
8. Investment stated in equity method	028
IV. RECEIVABLES (030 up to 032)	029	193.060.060	189.009.079
1. Receivables from associated undertakings	030	184.601.039	179.590.102
2. Receivables from sales on credit	031
3. Other receivables	032	8.459.021	9.418.977
V. DEFFERED TAX ASSETS	033	8.743.624	9.703.580
C) CURRENT ASSETS (035+043+050+058)	034	283.474.181	323.390.458
I. INVENTORY (036 up to 042)	035	56.881.889	49.016.300
1. Materials and supplies	036	39.966.197	32.429.641
2. Work in progress	037	5.011.771	5.625.970
3. Finished goods 4. Commercial goods	038 039	11.473.240	9.897.313
5. Advances for inventories	040	430.681	1.063.376
6. Long term assets held for sale	041
7. Biological assets	042
II. RECEIVABLES (044 up to 049)	043	209.072.752	254.509.418
1. Receivables from associated undertakings	044	16.189.917	40.431.797
2. Trade receivables	045	154.974.700	128.521.266
3. Receivables from participating companies	046	3.961.203	29.710.539
4. Receivables from employees and members of the business	047	412.509	542.763
5. Receivables from government and other institutions	048	9.344.172	8.840.505
6. Other receivables	049	24.190.251	46.462.548
III. CURRENT FINANCIAL ASSETS (051 up to 057)	050	15.719.018	15.715.628
1. Shares in affiliated undertakings	051
2. Loans to affiliates	052	13.415.236	13.415.236
3. Participating interests (shares) 4. Given loans to companies in which exist participating interests	053 054
5. Investments in to securities	055
6. Other loan, deposits etc	056	2.303.782	2.300.392
7. Other financial assets	057
IV. CASH AT BANK AND IN HAND	058	1.800.522	4.149.112
D) PREPAYMENTA AND ACCRUED INCOME	059	62.506.772	59.748.752
E) TOTAL ASSETS (001+002+034+059)	060	1.396.210.674	1.393.027.129
F) OUT-OF-BALANCE ITEMS	061	4.592.542	4.592.542

Balance sheet - Liabilities

LIABILITIES
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	625.309.099	648.989.022
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	32.050.802	32.050.802
1. Legal reserves	066	6.128.852	6.128.852
2. Reserves for own shares	067	2.945.290	2.945.290
3. Own stocks and shares (deductible item)	068	2.945.290	2.945.290
4. Statutory reserves	069
5. Other reserves	070	25.921.950	25.921.950
IV. REVALUATION RESERVES	071	-22.500.271	-17.980.595
V. RETAINED EARNINGS OR LOSS BROUGHT FORWARD (073-074)	072	0	12.724.371
1. Retained earnings	073		12.724.371
2. Loss brought forward	074
VI. CURRENT YEAR PROFIT OR LOSS (076-077)	075	12.724.371	19.160.247
1. Current year profit	076	12.724.371	19.160.247
2. Current year loss	077
VII. MINOR INTEREST	078
B) PROVISIONS (080 up to 082)	079	5.711.384	5.711.384
1. Provisions for pensions, severance pay and similar obligations	080	687.919	687.919
2. Provisions for tax liabilities	081
3. Other provisions	082	5.023.465	5.023.465
C) LONG TERM LIABILITIES (084 up to 092)	083	201.376.693	323.301.932
1. Liabilities to related parties	084
2. Commitments for loans, deposits, etc	085
3. Liabilities to banks and other financial institutions	086	185.337.723	301.029.541
4. Liabilities for advances	087
5. Trade payables	088	15.870.284	20.972.474
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	168.686	1.299.917
D) SHORT TERM LIABILITIES (094 do 105)	093	553.536.665	410.332.347
1. Liabilities to related parties	094	26.438.199	34.589.715
2. Commitments for loans, deposits, etc	095	1.145.000	0
3. Liabilities to banks and other financial institutions	096	247.262.604	102.991.634
4. Liabilities for advances	097	44.695.880	59.083.689
5. Trade payables	098	218.273.771	198.423.591
6. Commitments on securities	099
7. Liabilities to companies in which are participating interests	100
8. Liabilities towards employees	101	7.970.896	8.098.672
9. Liabilities for taxes, contributions and other benefits	102	4.515.656	3.913.465
10. Liabilities to share in the result	103
11. Amount based on fixed assets intended to sale	104
12. Other short-term liabilities	105	3.234.659	3.231.581
E) DEFERRED PAYMENT OF COSTS AND FUTURE INCOME	106	10.276.833	4.692.444
F) TOTAL LIABILITIES (062+079+083+093+106)	107	1.396.210.674	1.393.027.129
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 01.01.2015. till 30.06.2015.
Taxpayer: AD Plastik d.d.
ITEM	AOP	Preceding year Cumulative Quarter		Current year Cumulative Quarter
	ind.
1	2	3	4	5	6
I. OPERATING TURNOVER (112+113)	111	261.179.358	153.335.914	391.131.603	185.558.399
1. Income from sales	112	253.674.210	148.488.864	387.061.508	182.243.455
2. Other operating income	113	7.505.148	4.847.050	4.070.095	3.314.944
II. OPERATING CHARGES (115+116+120+124+125+126+129+130)	114	255.666.664	143.871.930	371.386.481	175.234.531
1. Changes in the value of inventories of work in progress and finished goods	115	2.685.719	-1.162.976	961.729	-2.282.870
2. Material charges (117 up to 119)	116	141.004.016	79.648.973	255.590.543	120.500.061
a) Costs of raw materials and consumables	117	107.132.147	57.716.215	201.752.120	93.013.419
b) Costs of sales	118	18.163.443	12.903.752	27.443.416	13.293.049
c) Other external charges	119	15.708.427	9.029.006	26.395.007	14.193.593
3. Staff costs (121 up to 123)	120	50.530.291	26.280.363	63.043.207	31.489.176
a) Salaries and wages	121	30.318.175	15.768.218	37.825.924	18.893.506
b) Costs of taxes and social security	122	12.632.573	6.570.091	15.760.802	7.872.294
c) Duties on wages	123	7.579.543	3.942.054	9.456.481	4.723.376
4. Depreciation	124	14.967.662	7.470.594	21.120.759	9.635.750
5. Other costs	125	44.957.318	31.440.325	28.641.474	14.703.442
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	1.521.658	194.651	2.028.769	1.188.972
III. FINANCIAL INCOME (132 up to 136)	131	45.499.981	40.893.589	52.883.903	6.491.576
1. Interests, exchange rate differenc, dividends with affiliates	132	2.803.134	87.698	2.954.319	1.744.095
2. Interests, exch. rate differenc., dividends with non-affiliates	133	3.923.693	2.770.907	3.391.874	2.161.351
3. Part of income from affiliates and participated interests	134	38.773.154	38.034.984	46.537.710	2.586.130
4. Non-realized financial income	135
5. Other financial income	136
IV. FINANCIAL CHARGES (138 up to 141)	137	11.210.369	5.429.428	53.480.041	13.420.245
1. Interests, exchange rate differenc, dividends with affiliates	138	440.291	255.384	71.023	-132.174
2. Interests, exch. rate differenc., dividends with non-affiliates	139	10.770.079	5.174.044	15.910.730	9.956.263
3. Non-realized financial charges	140			37.498.288	3.596.156
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	306.679.339	194.229.503	444.015.506	192.049.975
X. TOTAL CHARGES (114+137+143 + 145)	147	266.877.033	149.301.358	424.866.522	188.654.776
XI. PROFIT OR LOSS BEFORE TAXATION (146-147)	148	39.802.306	44.928.145	19.148.984	3.395.199
1. Profit before taxation (146-147)	149	39.802.306	44.928.145	19.148.984	3.395.199
2. Loss before taxation (147-146)	150	0	0	0	0
XII. PROFIT TAX	151			-11.265	-11.265
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151)	152	39.802.306	44.928.145	19.160.249	3.406.464
1. PROFIT FOR THE PERIOD (149-151)	153	39.802.306	44.928.145	19.160.249	3.406.464
2. LOSS FOR THE PERIOD (151-148)	154	0	0	0	0

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
2. Attributable to minority interests	156
Report for other comprehensive income (only for the taxpayer applying IFRS)
I. PROFIT OR LOSS FOR THE CURRENT PERIOD (= 152)	157	39.802.306	44.928.145	19.160.249	3.406.464
II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAXATION (159 up to 165)	158	0	0	5.656.158	-365.715
1. Exchange differences on translation of foreign operations	159			5.656.158	-365.715
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			1.131.232	-73.143
IV. OTHER COMPREHENSIVE NET PROFIT OR LOSS	167	0	0	4.524.926	-292.572
V. OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD (157+167)	168	39.802.306	44.928.145	23.685.175	3.113.892
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
2. Attributable to minority interests	170

7. Cash flow (indirect method)

CASH FLOW REPORT – Indirect method
in period from 01.01.2015. till 30.06.2015.
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	39.802.306	19.148.984
2. Depreciation	002	14.967.662	21.120.759
3. Increase of current liabilities	003	36.037.697
4. Decrease of current receivables	004
5. Decrease in stocks	005	2.389.517	7.865.589
6. Other increase of cash flow	006		4.050.981
I. Total increase of cash flow from operating activities (001 - 006)	007	93.197.182	52.186.313
1. Decrease of current liabilities	008		4.517.738
2. Increase of current receivables	009	83.174.944	64.477.331
3. Increase in stocks	010
4. Other decrease of cash flow	011		959.956
II. Total decrease of cash flow from operating activities (008 – 011)	012	83.174.944	69.955.025
A1) NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	013	10.022.238	0
A2) NET DECREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	014	0	17.768.712
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	1.429.565	899.448
4. Cash inflows from dividends	018	17.524.772	20.899.236
5. Other cash inflows from investment activities	019		4.530.940
III. Total cash inflows from investment activities (015-019)	020	18.954.337	26.329.624
1. Cash expenditures for purchase of fixed tangible and intangible assets	021	24.039.158	14.599.676
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	24.039.158	14.599.676
B1) NET INCREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (020-024)	025	0	11.729.948
B2) NET DECREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (024-020)	026	5.084.821	0
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	23.116.898	115.160.036
3. Other inflows from financial activities	029		37.498.288
V. Total cash inflows from financial activities (027-029)	030	29.548.377	152.658.324
1. Cash expenditures for the payment of credit principal and debentures	031	22.975.459	144.270.970
2. Cash expenditures for the payment of dividends	032	11.687.788
3. Cash expenditures for financial lease	033
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	41.367.247	144.270.970
C1) NET INCREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (030-036)	037	0	8.387.354
C2) NET DECREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (036-030)	038	11.818.870	0
Total cash flow increase (013-014+025-026+037-038)	039	0	2.348.590
Total cash flow decrease (014-013+026-025+038-037)	040	6.881.453	0
Cash and cash equivalents at the beginning of the period	041	14.531.049	1.800.522
Cash and cash equivalents increase	042		2.348.590
Cash and cash equivalents decrease	043	6.881.453
Cash and cash equivalents at the end of the period	044	7.649.596	4.149.112

8. Report on changes to capital

REPORT ON CHANGES TO CAPITAL
for period 1.1.2015 till 30.6.2015
Taxpayer: AD Plastik d.d.
ITEM		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	23.439.451	32.050.802
4. Retained profit or loss carried over	004	42.519.724	12.724.371
5. Current year profit or loss	005	39.802.306	19.160.247
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	-17.980.595
10. Total capital and reserves (AOP 001-009)	010	718.981.031	648.989.022
11.Exchange rate variations from net investments into foreign business	011		5.656.158
12.Current and deferred taxes (part)	012		-1.131.232
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	4.524.926
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. - 30.06.2015, 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