AD Plastik d.d.

Management Reports • Apr 29, 2016

2016

MANAGEMENT INTERIM REPORT

OF AD PLASTIK GROUP AND THE COMPANY AD PLASTIK D.D. SOLIN FOR THE FIRST QUARTER OF 2016

D

Contents

Management Interim Report of AD Plastik Group and the Company AD Plastik d.d. Solin for the period 01.01. - 31.03.2016 A

	Sales, EBITDA and net profit	5
	Comment by Marinko Došen, President of the Management Board	6
	Financial results for the first three months	7
	Key indicators of AD Plastik Group 01.01. - 31.03.2016	8
	Sales revenue per sales markets of AD Plastik Group, without affiliated companies	8
	AD Plastik Group with consolidation of the corresponding ownership parts in affiliated companies	10
B	Financial statement of AD Plastik Group	11
	Balance sheet	13
	Profit and loss account	15
	Cash flow (indirect method)	17
	Statement of changes in equity	18
C	Financial statement of the Company AD Plastik	19
	Balance sheet	21
	Profit and loss account	23
	Cash flow (indirect method)	25
	Statement of changes in equity	26
D	Management's statement of responsibility	27

A

4

Management Interim Report

of AD Plastik Group and the Company AD Plastik d.d. Solin for the period 01.01. - 31.03.2016

5
Comment by Marinko Došen, President of the Management Board 6
7
8
Sales revenue per sales markets of AD Plastik Group, without affiliated companies 8
AD Plastik Group with consolidation of the corresponding ownership parts in affiliated companies 10

D

Sales, EBITDA and net profit

Comment by Marinko Došen, President of the Management Board

The focus of our business is still on the growth in the existing markets, management of operational and financial risks and optimization of business operations. In the first quarter of 2016 the generated revenues of AD Plastik Group amount to 258 million kunas and are at the level of the planned operating income, and in comparison to the same period of the last year they have decreased by 1.3%.

Stable production and achieved operational plans of all key customers are the main reason for the realized sale which is practically at the level of the previous year.

The fact that the results achieved in the aforementioned period are in accordance with the defined business plan, gives us a reason to be pleased, but doesn't allow us to relax.

Operating expenses registered a continuous decline so net profit of AD Plastik Group is higher compared to the same period of the last year. One of the main goals in 2016 is to further increase the effectiveness of production and optimization of operating efficiency, which will ensure the continuity of the growth of EBITDA margin and enable continuing reduction of credit obligations.

The first quarter showed growth in operating margins on all sites compared to the same period of the last year, but also in regard to the set business plan. They are also the main engine of growth of EBITDA margin.

We believe in achieving our business plans and goals to the satisfaction of all our stakeholders.

Marinko Došen President of the Management Board

Financial results in the first three months

In the reporting period AD Plastik Group, which consists of AD Plastik d.d. Croatia, ADP d.o.o. Serbia, AD Plastik d.o.o. Slovenia, AO AD Plastik, Russia, ZAO AD Plastik Kaluga, Russia (hereinafter: AD Plastik Group) in spite of challenging operating conditions in Croatia and the region, and especially in the market of Russian Federation, recorded total operating revenue in accordance with the defined business plan. In comparison to the same period of the previous year operating results of AD Plastik Group are lower by 1.3%, and for the Company AD Plastik d.d. by 6.7%. Your needs. Our drive. MANAGEMENT INTERIM REPORT 7MANAGEMENT REPORT

In the first quarter of 2015 Project Edison has largely been the reason of the increased revenue, and in 2016 the project has stabilized at slightly lower levels than they were at the start of the serial production.

Generated revenues of AD Plastik Group in the first quarter of 2016 amounted to 258 mil kn, and are at the level of the planned operating income. Operating expenses record continuing decline which affects the growth of the variable gross margin.

EBITDA in the amount of 35.9 mil kn has been achieved and is at the planned level. It is increased by 12.3% compared to the same period of the previous year (32.0 mil kn). Despite somewhat lower sales volume, EBITDA growth indicators show constant improvement of cost efficiency of the Group, and the Group's profit shows a further increase in profitability despite lower realization.

Net profit of AD Plastik Group was realized in the amount of 14.6 million kunas, which is in line with the business plan, and is despite somewhat lower realization better than the realized profit in the same period of the last year. For the remaining part of the year the focus remains on further improvement of the cost efficiency, so this trend in the result can be expected to continue.

Key indicators of AD Plastik Group 01.01.2016 - 31.03.2016.

Key indicators	1Q 2015	1Q 2016		Index
Operating income (in thsd. of kuna)	261,404		258,147	98.75
EBITDA (in thousands of kuna)	31,978		35,910	112.30
EBITDA margin	12.23%		13.91%
Net profit (in thsd. of kn)	14,315		14,557	101.70
Sales revenue per sales markets of AD Plastik Group, without affiliated companies
		261 mkn		258 mkn
• Revenue increase of AD Plastik Group on the market of EU and Serbia by 3.8%,		Russia 25%		Russia 22%
• Revenue decrease of AD Plastik Group
in Russia by 16.02%.		EU + Serbia 75%		EU + Serbia 78%
		1Q 2015		1Q 2016
Financial position of AD Plastik Group
The trend of improvement of the financial position of AD Plastik d.d. and AD Plastik Group which started in 2015 has continued in the first quarter of 2016. Cash flows and liquidity of the Company are stable. During 2016 we do not expect any significant investments, except for the improvement of efficiency which has a very quick return on investment. During 2015, considerable efforts have been made in reduction of indebtedness of AD Plastik Group and restructuring of short-term financial liabilities into long-term liabilities. During 2015 AD Plastik d.d. restructured a part of current liabilities to the banks into long-term liabilities and thus impro ved the structure of the balance sheet. In 2016 further activities are planned for the optimization of financial expenses. Compared to 31.03.2015. credit indebtedness is reduced by 60 mil kn.
Your needs. Our drive.				MANAGEMENT INTERIM REPORT

Sales revenue per sales markets of AD Plastik Group, without affiliated companies

• • Revenue increase of AD Plastik Group on the market of EU and Serbia by 3.8%,
• • Revenue decrease of AD Plastik Group in Russia by 16.02%.

Financial position of AD Plastik Group

A

Sales revenue per sales markets of AD Plastik Group, without affiliated companies

EU and Serbian markets

Solin, Zagreb, Mladenovac

For EU market and the Serbian market we produce at the sites in Solin and Zagreb in Croatia and in Mladenovac, Serbia. Operating activities in Croatia and Serbia for the third year in a row significantly contribute to the operating results of AD Plastik Group.

In the first quarter of 2016 realized operating income on sites in Croatia and Serbia is higher by 3.8% compared to the same period of the last year. The increase in production is the result of raising capacity utilization and the beginning of serial deliveries of new projects in Serbia. Realized sales is at the level of the planned sales.

Russian market (subsidiaries)

Vintai (Togliatti), Kaluga

Total production and sales of the factories in Vintai and Kaluga are intended for the market in Russia. The sales realized in the first three months of 2016 on the Russian market is achieved at somewhat higher volume than planned, although the total revenues compared to the first quarter of the last year have decreased by 16.0%.

The realization of the planned EBITDA margin and slightly improved net results of the factories is the result of permanent savings on operating costs and monthly adjustments of selling prices with changes in the euro exchange rate to the Russian ruble.

In the first three months of 2016 companies of the AD Plastik Group operating in the Russian Federation have achieved positive business results and revenues higher than planned, which indicates the stabilization of business in this market, although still at a low volume of production and insufficient level of utilization of production capacity.

AD Plastik Group with consolidation of the corresponding ownership parts in affiliated companies

Euro APS, FADP Holding, Center for research and development of automotive industry

With the aim of obtaining a clearer picture of business of AD Plastik Group, we have created an abbreviated consolidated profit and loss account for the first three months of 2015 and 2016 of AD Plastik Group's consolidated profit and loss account of affiliated companies Euro APS Romania, FADP Russia and Center for research and development of automotive industry in which AD Plastik d.d. has 50%, 40% and 24% ownership respectively.

AD Plastik Group income statement

With consolidation of belonging ownership shares in Euro APS, FADP and Center for research and development of automotive industry for 1Q 2015 and 1Q 2016 in thousands of HRK.

Positions 1Q 2015 1Q 2016 Index OPERATING REVENUES 376,555 368,687 98 OPERATING EXPENSES 352,165 337,112 96 Material costs 236,584 224,122 95 Staff costs 60,078 57,500 96 Amortization 21,046 21,530 102 Other costs 34,458 33,961 99 FINANCIAL REVENUE 37,984 12,708 33 FINANCIAL EXPENSES 45,468 27,726 61 TOTAL REVENUE 414,539 381,395 92 TOTAL EXPENSES 397,633 364,838 92 Profit before tax 16,906 16,557 98 Profit tax 2,591 2,000 77 PROFIT OF THE PERIOD 14,315 14,557 102 EBITDA 45,435 53,105 117 Your needs. Our drive. MANAGEMENT INTERIM REPORT 10MANAGEMENT REPORT

As it is seen from the table the operating income of AD Plastik Group with consolidated corresponding part ownership in Euro APS, FADP and Center for research and development of automotive industry has recorded a slight decrease of 2% compared to the same period of the last year. EBITDA in the same period recorded an increase of 17% compared to the same period of the last year and totaled 53.1 million kn.

Results of affiliated companies EAPS Romania, FADP Holding France and Center for research and development of automotive industry Croatia are included in the results of the Group by equity method.

On the day 31.03.2016. the Group with its affiliated companies employed 2,929 workers, of which 1,200 in the parent company in Croatia.

Affiliated companies have no financial liabilities arising from credits to external entities, except the liabilities obtained from the owner.

A

CONTENTS

of AD Plastik Group

Balance sheet	13
Profit and loss account	15
Cash flow (indirect method)	17
Statement of changes in equity	18

B

A

CONTENTS

AD PLASTIK GROUP

Appendix 1 Quarterly Financial Report, AD Plastik Group

01.01.2016. 31.03.2016. Reporting period: to
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Quarterly Financial Report of the entrepreneur TFI-POD

	Register number (MB):		03440494
	Entity register number (MBS):		060007090
	Personal identification number (PIN):		48351740621
	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 name:	406	Solin
	County code and name:	17	Splitsko-dalmatinska
	No. of employees (at the end of the trimester):		2,929
	Consolidated report:	YES	NCA code:	2932
	Names of consolidation subjects (according to IMSF):	Seat:		REG. NO.:
	AD PLASTIK d.d.	Solin, Croatia		03440494
	AO AD PLASTIK			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:
	Financial statements (balance sheet, profit and loss statement, cash flow statement, 1. changes in equity and notes to financial statements)
	2. Interim report
	3. Statement of the person responsible for compiling financial statements
			(signature of the person
	Place of the seal		authorised for representation)
Your needs. Our drive.				MANAGEMENT INTERIM REPORT

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

A

CONTENTS

Balance sheet on 31.03.2016.

Company: AD Plastik Group

	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	1.005.948.798	974.369.311
	I. Intangible assets (004 up to 009)	003	133.591.715	128.389.810
	1 Development costs	004	80.546.532	75.683.307
	2 Concessions, patents, licenses, trademarks, softwares and other rights	005	3.564.101	3.351.462
	3 Goodwill	006	7.612.311	7.810.863
	4 Advances for purchase of intangible assets	007
	5 Intangible assets in preparation	008	38.230.588	38.093.209
	6 Other intangible assets	009	3.638.183	3.450.969
	II. Tangible assets (011 up to 019)	010	695.403.772	686.588.815
	1 Land	011	141.133.105	141.255.213
	2 Buildings	012	261.882.421	261.105.489
	3 Plants and machinery	013	266.826.200	257.731.176
	4 Tools, plant & office inventory, furniture & transport means	014	14.919.960	14.112.957
	5 Biological assets	015
	6 Payments on account for tangible assets	016	23.415	98.725
	7 Tangible assets in preparation	017	10.543.917	12.219.965
	8 Other tangible assets	018	74.754	65.290
	9 Investment in real estate	019
	III. Fixed financial assets (021 up to 028)	020	132.592.958	118.529.632
	1 Shares in affiliated undertakings	021
	2 Loans to affiliated undertakings	022
	3 Participating interests (shares)	023	86.507.627	81.753.803
	4 Given loans to companies in which exist participating interests	024	37.733.977	28.440.937
	5 Investments in securities	025	61.700	190.200
	6 Other loans, deposits etc	026	8.289.654	8.144.692
	7 Other fixed financial assets	027
	8 Investment stated in equity method	028
	IV. Receivables (030 up to 032)	029	14.175.985	14.175.985
	1 Receivables from associated undertakings	030
	2 Receivables from sales on credit	031
	3 Other receivables	032	14.175.985	14.175.985
	V. Deffered tax assets	033	30.184.368	26.685.069
C	CURRENT ASSETS (035+043+050+058)	034	294.238.847	341.865.098
	I. Inventory (036 up to 042)	035	97.786.225	92.023.959
	1 Materials and supplies	036	65.038.743	60.315.051
	2 Work in progress	037	4.263.670	6.105.409
	3 Finished goods	038	18.576.488	15.904.596
	4 Commercial goods	039	9.907.324	9.698.903
	5 Advances for inventories	040
	6 Long term assets held for sale	041
	7 Biological assets	042
	II. Receivables (044 up to 049)	043	177.953.111	230.761.368
	1 Receivables from associated undertakings	044
	2 Trade receivables	045	137.336.315	152.960.922
	3 Receivables from participating companies	046	6.408.483	28.199.248
	4 Receivables from employees and members of the business	047	382.197	420.178
	5 Receivables from government and other institutions	048	10.182.444	18.931.727
	6 Other receivables	049	23.643.672	30.249.293
	III. Current financial assets (051 up to 057)	050	6.115.737	6.790.378
	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
	5 Investments in to securities	055
	6 Other loans, deposits etc	056	6.115.737	6.790.378
	7 Other financial assets	057
	IV. Cash at bank and in hand	058	12.383.774	12.289.393
D	PREPAYMENT AND ACCRUED INCOME	059	45.189.479	43.821.468
E	TOTAL ASSETS (001+002+034+059)	060	1.345.377.124	1.360.055.877
F	OUT-OF-BALANCE ITEMS	061	29.591.225	30.045.138

A

Balance sheet on 31.03.2016.

Company: AD Plastik Group

	Item	AOP ind.	Preceding year	Current year
	1	2	3	4	CONTENTS
LIABILITIES
A	CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	622.955.516	647.102.674	A
	I. SUBSCRIBED SHARE CAPITAL	063	419.958.400	419.958.400
	II. CAPITAL RESERVES	064	183.481.905	183.472.152
	III. RESERVES FROM GAIN (066+067-068+069+070)	065	31.549.516	31.549.521
	1 Legal reserves	066	6.139.440	6.139.445
	2 Reserves for own shares	067	3.107.594	3.246.712	MANAGEMENT REPORT
	3 Own stocks and shares (deductible item)	068	3.107.594	3.246.712
	4 Statutory reserves	069
	5 Other reserves	070	25.410.076	25.410.076
	IV. REVALUATION RESERVES	071	-72.895.692	-65.867.729
	V. RETAINED EARNINGS OR LOSS BROUGHT FORWARD (073-074)	072	14.641.039	63.435.966
	1 Retained earnings	073	14.641.039	63.435.966
	2 Loss brought forward	074
	VI. CURRENT YEAR PROFIT OR LOSS (076-077)	075	46.225.069	14.557.133	B
	1 Current year profit	076	46.225.069	14.557.133
	2 Current year loss	077
	VII. MINOR INTEREST	078	-4.721	-2.769
B	PROVISIONS (080 up to 082)	079	9.459.516	7.873.744	AD PLASTIK GROUP
	1 Provisions for pensions, severance pay and similar obligations	080	1.724.443	1.724.443
	2 Provisions for tax liabilities	081
	3 Other provisions	082	7.735.073	6.149.301
C	LONG TERM LIABILITIES (084 up to 092)	083	298.864.762	298.055.121
	1 Liabilities to related parties	084			C
	2 Commitments for loans, deposits, etc	085
	3 Liabilities to banks and other financial institutions	086	262.592.153	262.572.509
	4 Liabilities for advances	087
	5 Trade payables	088	28.487.988	28.034.690	AD PLASTIK d.d.
	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	7.784.621	7.447.922
D	SHORT TERM LIABILITIES (094 do 105)	093	396.477.901	391.331.450	D
	1 Liabilities to related parties	094
	2 Commitments for loans, deposits, etc	095	1.983.051	1.956.736
	3 Liabilities to banks and other financial institutions	096	161.117.273	151.188.752
	4 Liabilities for advances 5 Trade payables	097 098	23.613.360 180.510.796	22.201.248 185.453.519
	6 Commitments on securities	099
	7 Liabilities to companies in which are participating interests	100	896.374	678.492
	8 Liabilities towards employees	101	9.898.976	9.938.241
	9 Liabilities for taxes, contributions and other benefits	102	15.041.837	15.833.931
	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	3.388.378	4.052.675
E	DEFERRED PAYMENT OF COSTS AND FUTURE INCOME	106	17.619.429	15.692.888
F	TOTAL LIABILITIES (062+079+083+093+106)	107	1.345.377.124	1.360.055.877
G	OUT-OF BALANCE ITEMS	108	29.591.225	30.045.138
	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 2 Ascribed to minority interest	109 110	622.960.237 -4.721	647.105.443 -2.769

A	CAPITAL AND RESERVES
	1 Ascribed to the holders of the parent company capital	109	622.960.237	647.105.443
	2 Ascribed to minority interest	110	-4.721	-2.769

Profit and loss account Reporting period: 01.01.2016. to 31.03.2016.

Company: AD Plastik Group

		AOP	Preceding year		Current year
	Item 1	ind. 2	Cumulative 3	Quarter 4	Cumulative 5	Quarter 6
I.	OPERATING TURNOVER (112+113)	111	261.404.759	261.404.759	258.147.126	258.147.126
	1 Income from sales	112	259.519.342	259.519.342	251.339.669	251.339.669
	2 Other operating income	113	1.885.417	1.885.417	6.807.457	6.807.457
II.	OPERATING CHARGES (115+116+120+124+125+126+129+130)	114	247.198.632	247.198.632	241.138.447	241.138.447
	1 Changes in the value of inventories of work in progress and finished goods	115	4.712.695	4.712.695	1.198.904	1.198.904
	2 Material charges (117 up to 119)	116	160.546.409	160.546.409	159.040.772	159.040.772
	a Costs of raw materials and consumables	117	131.982.137	131.982.137	125.592.882	125.592.882
	b Costs of sales	118	13.446.386	13.446.386	14.633.707	14.633.707
	c Other external charges	119	15.117.886	15.117.886	18.814.183	18.814.183
	3 Staff costs (121 up to 123)	120	44.589.115	44.589.115	41.736.714	41.736.714
	a Salaries and wages	121	27.469.149	27.469.149	25.588.511	25.588.511
	b Costs of taxes and social security	122	9.546.630	9.546.630	9.280.228	9.280.228
	c Duties on wages	123	7.573.336	7.573.336	6.867.975	6.867.975
	4 Depreciation	124	17.771.554	17.771.554	18.900.994	18.900.994
	5 Other costs	125	17.939.641	17.939.641	13.998.093	13.998.093
	6 Impairment (127+128)	126
	a Fixed assets (excluding financial assets)	127
	b Current assets (excluding financial assets)	128
	7 Provisions	129			2.341	2.341
	8 Other operating expenses	130	1.639.218	1.639.218	6.260.629	6.260.629
III.	FINANCIAL INCOME (132 up to 136)	131	40.057.573	40.057.573	13.835.772	13.835.772
	1 Interests, exchange rate difference, dividends with affiliates	132	26.658.626	26.658.626	8.885.930	8.885.930
	2 Interests, exchange rate difference, dividends with non-affiliates	133	11.397.655	11.397.655	3.805.755	3.805.755
	3 Part of income from affiliates and participated interests	134	2.001.292	2.001.292	1.144.086	1.144.086
	4 Non-realized financial income	135
	5 Other financial income	136
IV.	FINANCIAL CHARGES (138 up to 141)	137	44.360.297	44.360.297	26.708.125	26.708.125
	1 Interests, exchange rate difference, dividends with affiliates	138	29.279.566	29.279.566	11.066.998	11.066.998
	2 Interests, exch. rate difference, dividends with non-affiliates	139	15.000.453	15.000.453	15.641.127	15.641.127
	3 Non-realized financial charges	140
	4 Other financial charges	141	80.278	80.278
V.	SHARE OF PROFIT FROM ASSOCIATED COMPANIES	142	10.261.104	10.261.104	10.462.685	10.462.685
VI.	SHARE OF LOSS FROM ASSOCIATED COMPANIES	143	5.849.808	5.849.808
VII.	EXTRAORDINARY – OTHER INCOME	144
VIII	EXTRAORDINARY – OTHER CHARGES	145
IX.	TOTAL INCOME (111+131+142 + 144)	146	311.723.436	311.723.436	282.445.583	282.445.583
X.	TOTAL CHARGES (114+137+143 + 145)	147	297.408.737	297.408.737	267.846.572	267.846.572
XI.	PROFIT OR LOSS BEFORE TAXATION (146-147)	148	14.314.699	14.314.699	14.599.011	14.599.011
	1 Profit before taxation (146-147)	149	14.314.699	14.314.699	14.599.011	14.599.011
	2 Loss before taxation (147-146)	150
XII.	PROFIT TAX	151			41.035	41.035
XIII	PROFIT OR LOSS FOR THE PERIOD (148-151)	152	14.314.699	14.314.699	14.557.976	14.557.976
	1 PROFIT FOR THE PERIOD (149-151)	153	14.314.699	14.314.699	14.557.976	14.557.976
	2 LOSS FOR THE PERIOD (151-148)	154

A

Profit and loss account Reporting period: 01.01.2016. to 31.03.2016.

Company: AD Plastik Group

Item ind. Cumulative Quarter Cumulative Quarter 1 2 3 4 5 6 ADDENDUM TO ATS (filled in by the entrepreneur compiling the consolidated annual financial statement) PROFIT OR LOSS FOR THE CURRENT PERIOD 155 14.312.145 14.312.145 14.557.133 14.557.133 156 2.554 2.554 843 843 Report for other comprehensive income (only for the taxpayer applying IFRS) PROFIT OR LOSS FOR THE CURRENT PERIOD (= 152) 157 14.314.699 14.314.699 14.557.976 14.557.976 OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAXATION 158 3.386.923 3.386.923 7.403.558 7.403.558 (159 up to 165) 159 -64.099.663 -64.099.663 10.070.335 10.070.335 2 Movements in revaluation reserves of fixed and intangible assets 160 67.486.586 67.486.586 -2.666.776 -2.666.776 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 163 164 panies 165 TAX ON OTHER COMPREHENSIVE INCOME FOR THE CURRENT 166 637.017 637.017 1.482.293 1.482.293 PERIOD OTHER COMPREHENSIVE NET PROFIT OR LOSS (158-166) 167 2.749.906 2.749.906 5.921.265 5.921.265 OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD 168 17.064.605 17.064.605 20.479.242 20.479.242 (157+167) ADDENDUM to Report for other comprehensive income (filled in by the entrepreneur compiling the consolidated annual financial statement) SVEOBUHVATNA DOBIT ILI GUBITAK RAZDOBLJA 1 Attributable to equity holders 169 17.065.997 17.065.997 20.476.495 20.476.495 2 Attributable to minority interests 170 -1.392 -1.392 2.747 2.747		AOP	Preceding year		Current year
	1 Attributable to equity holders
	2 Attributable to minority interests
	1 Exchange differences on translation of foreign operations
	6 Share of other comprehensive income / loss of associated com
	7 Actuarial gains / losses on defined benefit plans

VI.	SVEOBUHVATNA DOBIT ILI GUBITAK RAZDOBLJA
	1 Attributable to equity holders	169	17.065.997	17.065.997	20.476.495	20.476.495
	2 Attributable to minority interests	170	-1.392	-1.392	2.747	2.747

CONTENTS

Cash flow statement indirect method Reporting period: 01.01.2016. to 31.03.2016.

Company: AD Plastik Group

	AOP ind.	Preceding year	Current year
1	2	3	4
CASH FLOW FROM OPERATING ACTIVITIES
1 Profit before taxation	001	14.314.699	14.599.011
2 Depreciation	002	17.771.554	18.900.994
3 Increase of current liabilities	003
4 Decrease of current receivables	004
5 Decrease in stocks	005	941.135	5.762.266
6 Other increase of cash flow	006	17.341.144	3.499.299
I. Total increase of cash flow from operating activities (001 - 006)	007	50.368.532	42.761.570
1 Decrease of current liabilities	008	40.200.805	8.658.764
2 Increase of current receivables	009	37.882.300	51.440.246
3 Increase in stocks	010
4 Other decrease of cash flow	011	762.266
II. Total decrease of cash flow from operating activities (008 – 011)	012	78.845.371	60.099.010
A1 NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	013
A2 NET DECREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	014	28.476.839	17.337.440
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	427.745
4 Cash inflows from dividends	018
5 Other cash inflows from investment activities	019
III. Total cash inflows from investment activities (015-019)	020	427.745
1 Cash expenditures for purchase of fixed tangible and intangible assets	021	24.259.873	4.884.132
2 Cash expenditures for acquisition of ownership and debt instruments	022
3 Other cash expenditures from investment activities	023
	024	24.259.873	4.884.132
IV. Total cash expenditures from investment activities (021-023)
B1 NET INCREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (020-024) B2 NET DECREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (024-020)	025 026	23.832.128	4.884.132
1 Cash inflows from issuing ownership and debt financial instruments	027
2 Cash inflows from credit principal, debentures, loans and other borrowings	028	35.045.279	12.579.044
3 Other inflows from financial activities	029	19.526.185	9.548.147
V. Total cash inflows from financial activities (027-029)	030	54.571.464	22.127.190
1 Cash expenditures for the payment of credit principal and debentures	031
2 Cash expenditures for the payment of dividends	032
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
C1 NET INCREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (030-036)	037	54.571.464	22.127.190
C2 NET DECREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (036-030)	038
Total cash flow increase (013-014+025-026+037-038)	039	2.262.497
Total cash flow decrease (014-013+026-025+038-037)	040		94.381
CASH FLOW FROM FINANCIAL ACTIVITIES Cash and cash equivalents at the beginning of the period	041	7.805.591	12.383.774
Cash and cash equivalents increase	042	2.262.497
Cash and cash equivalents decrease Cash and cash equivalents at the end of the period	043 044	10.068.088	94.381 12.289.393

Statement of changes in equity Reporting period: 01.01.2016. to 31.03.2016.

Company: AD Plastik Group

	Item 1	AOP ind. 2	Preceding year 3	Current year 4
	1 Subscribed capital	001	419.958.400	419.958.400
	2 Capital reserves	002	183.516.707	183.472.152
	3 Reserves from profit	003	32.061.070	31.546.752
	4 Retained profit or loss carried over	004	34.377.603	63.435.966
	5 Current year profit or loss	005	14.312.145	14.557.133
	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	-19.753.364	-65.867.729
	10 Total equity and reserves (AOP 001-009)	010	664.472.561	647.102.674
	11 Exchange rate variations from net investments into foreign business operations	011	-64.099.663	10.070.335
	12 Current and deferred taxes (part)	012	-637.017	-1.482.293
	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	67.486.586	-2.666.776
	17 Total equity increase or decrease (AOP 011 - 016)	017	2.749.906	5.921.265
17 a	Ascribed to holders of the holders company capital	018	664.473.903	647.105.443
	Your needs. Our drive.			MANAGEMENT INTERIM REPORT

Financial statement

of the Company AD Plastik d.d.

Balance sheet	21
Profit and loss account	23
Cash flow (indirect method)	25
Statement of changes in equity	26

C

A

CONTENTS

AD PLASTIK d.d.

Appendix 1 Quarterly Financial Report, AD Plastik d.d.

Reporting period:	01.01.2016.	to	31.03.2016.

Quarterly Financial Report of the entrepreneur TFI-POD

	Register number (MB):		03440494
	Entity register number (MBS):		060007090
	Personal identification number (PIN):		48351740621		MANAGEMENT REPORT
	Issuing company:		AD PLASTIK d.d.
	Post code and place:	21210	Solin
	Street and house number:		Matoševa 8
	E-mail address:			adplastik@adplastik.hr	B
	Internet address:		www.adplastik.hr
	Municipality/city code and name:	406	Solin		AD PLASTIK GROUP
	County code and name:	17	Splitsko-dalmatinska
	No. of employees (at the end of the trimester):		1,200
	Consolidated report:	NO	NCA code:	2932
	Names of consolidation subjects (according to IMSF):	Seat:		REG. NO.:	C
					AD PLASTIK d.d.
					D
	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:
	Financial statements (balance sheet, profit and loss statement, cash flow statement, 1. 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)
Your needs. Our drive.				MANAGEMENT INTERIM REPORT	20

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

Documentation for publishing:

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

on 31.03.2016. Balance sheet Company: AD Plastik d.d.

Item	AOP ind.	Preceding year	Current year
1	2	3	4
ASSETS
RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID	001
FIXED ASSETS (003+010+020+029+033)	002	1.022.628.683	994.934.569
I. Intangible assets (004 up to 009)	003	99.185.975	95.246.485
1 Development costs	004	63.178.571	59.401.727
2 Concessions, patents, licenses, trademarks, softwares and other rights	005	1.403.157	1.309.009
3 Goodwill	006
4 Advances for purchase of intangible assets	007
5 Intangible assets in preparation	008	34.604.247	34.535.749
6 Other intangible assets	009
II. Tangible assets (011 up to 019)	010	511.441.985	505.239.393
1 Land	011	139.976.599	139.976.599
2 Buildings	012	193.773.750	192.861.072
3 Plants and machinery	013	157.835.416	153.317.915
4 Tools, plant & office inventory, furniture & transport means	014	12.045.278	11.325.000
5 Biological assets	015
6 Payments on account for tangible assets	016
7 Tangible assets in preparation	017	7.810.942	7.758.807
8 Other tangible assets	018
9 Investment in real estate	019
III. Fixed financial assets (021 up to 028)	020	187.263.126	177.953.586
1 Shares in affiliated undertakings	021	44.376.245	44.376.245
2 Loans to affiliated undertakings	022	75.023.792	75.023.792
3 Participating interests (shares)	023	21.779.205	21.779.205
4 Given loans to companies in which exist participating interests	024	37.733.977	28.440.937
5 Investments in securities	025	61.700	190.200
6 Other loans, deposits etc	026	8.288.207	8.143.207
7 Other fixed financial assets	027
8 Investment stated in equity method	028
IV. Receivables (030 up to 032)	029	212.619.383	205.813.345
1 Receivables from associated undertakings	030	198.443.398	191.637.360
2 Receivables from sales on credit	031
3 Other receivables	032	14.175.985	14.175.985
V. V. Deffered tax assets	033	12.118.214	10.681.760
CURRENT ASSETS (035+043+050+058)	034	213.790.616	249.092.908
I. Inventory (036 up to 042)	035	50.539.344	46.894.609
1 Materials and supplies	036	35.086.842	31.674.322
2 Work in progress	037	3.416.353	4.275.032
3 Finished goods	038	9.812.364	8.608.576
4 Commercial goods	039	2.223.785	2.336.679
5 Advances for inventories	040
6 Long term assets held for sale	041
7 Biological assets	042
II. Receivables (044 up to 049)	043	142.268.895	178.389.973
1 Receivables from associated undertakings	044	11.253.092	22.837.797
2 Trade receivables	045	101.416.624	99.562.453
3 Receivables from participating companies	046	4.883.018	26.485.170
4 Receivables from employees and members of the business	047	302.213	279.381
5 Receivables from government and other institutions	048	5.254.298	7.829.812
6 Other receivables	049	19.159.650	21.395.360
III. Current financial assets (051 up to 057)	050	17.568.690	17.749.458
1 Shares in affiliated undertakings	051
2 Loans to affiliates	052	13.368.967	13.368.967
3 Participating interests (shares)	053
4 Given loans to companies in which exist participating interests	054
5 Investments in to securities	055
6 Other loans, deposits etc	056	4.199.723	4.380.491
7 Other financial assets	057
IV. Cash at bank and in hand	058	3.413.687	6.058.868
PREPAYMENT AND ACCRUED INCOME	059	36.922.560	35.079.312
TOTAL ASSETS (001+002+034+059)	060	1.273.341.859	1.279.106.789
OUT-OF-BALANCE ITEMS	061	4.592.542	4.592.542

A

Balance sheet on 31.03.2016.

Company: AD Plastik d.d.

	Item	AOP ind.	Preceding year	Current year
	1	2	3	4
	LIABILITIES
A	CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	644.971.641	667.816.501
	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	31.538.928	31.538.928
	1 Legal reserves	066	6.128.852	6.128.852
	2 Reserves for own shares	067	3.107.594	3.246.712
	3 Own stocks and shares (deductible item)	068	3.107.594	3.246.712
	4 Statutory reserves	069
	5 Other reserves	070	25.410.076	25.410.076
	IV. REVALUATION RESERVES	071	-34.876.517	-29.140.541
	V. RETAINED EARNINGS OR LOSS BROUGHT FORWARD (073-074)	072	12.724.371	45.275.033
	1 Retained earnings	073	12.724.371	45.275.033
	2 Loss brought forward	074
	VI. CURRENT YEAR PROFIT OR LOSS (076-077)	075	32.550.662	17.108.884
	1 Current year profit	076	32.550.662	17.108.884
	2 Current year loss	077
	VII. MINOR INTEREST	078
	PROVISIONS (080 up to 082)	079	8.914.024	7.314.024
	1 Provisions for pensions, severance pay and similar obligations	080	1.724.443	1.724.443
	2 Provisions for tax liabilities	081
	3 Other provisions	082	7.189.581	5.589.581
	LONG TERM LIABILITIES (084 up to 092)	083	265.493.900	265.432.935
	1 Liabilities to related parties	084
	2 Commitments for loans, deposits, etc	085
	3 Liabilities to banks and other financial institutions 4 Liabilities for advances	086 087	246.080.090	246.340.353
	5 Trade payables	088	19.263.124	18.944.355
	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	150.686	148.227
	SHORT TERM LIABILITIES (094 do 105)	093	338.674.802	324.792.169
	1 Liabilities to related parties	094	17.875.305	19.311.799
	2 Commitments for loans, deposits, etc	095
	3 Liabilities to banks and other financial institutions	096	141.457.550	134.733.498
	4 Liabilities for advances	097	6.826.368	6.109.259
	5 Trade payables	098	155.575.261	150.022.507
	6 Commitments on securities	099
	7 Liabilities to companies in which are participating interests	100	7.808	7.530
	8 Liabilities towards employees	101	8.045.263	7.701.930
	9 Liabilities for taxes, contributions and other benefits	102	6.190.380	4.206.791
	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	2.669.011	2.670.999
	DEFERRED PAYMENT OF COSTS AND FUTURE INCOME	106	15.287.492	13.751.160
	TOTAL LIABILITIES (062+079+083+093+106)	107	1.273.341.859	1.279.106.789
	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)
E F G A
	CAPITAL AND RESERVES 1 Ascribed to the holders of the parent company capital	109

A	CAPITAL AND RESERVES
	1 Ascribed to the holders of the parent company capital	109
	2 Ascribed to minority interest	110

CONTENTS

Profit and loss account Reporting period: 01.01.2016. to 31.03.2016.

Company: AD Plastik d.d.

	Item	AOP ind.	Preceding year Cumulative	Quarter	Current year Cumulative	Quarter
	1	2	3	4	5	6
I.	OPERATING TURNOVER (112+113)	111	205.573.204	205.573.204	191.884.630	191.884.630
	1 Income from sales	112	204.818.053	204.818.053	190.119.355	190.119.355
	2 Other operating income	113	755.151	755.151	1.765.275	1.765.275
II.	OPERATING CHARGES (115+116+120+124+125+126+129+130)	114	196.151.950	196.151.950	179.466.388	179.466.388
	1 Changes in the value of inventories of work in progress and finished goods	115	3.244.599	3.244.599	345.109	345.109
	2 Material charges (117 up to 119)	116	135.090.482	135.090.482	124.863.817	124.863.817
	a Costs of raw materials and consumables	117	108.738.701	108.738.701	98.013.139	98.013.139
	b Costs of sales	118	14.150.367	14.150.367	14.866.494	14.866.494
	c Other external charges	119	12.201.414	12.201.414	11.984.185	11.984.185
	3 Staff costs (121 up to 123)	120	31.554.031	31.554.031	31.471.981	31.471.981
	a Salaries and wages	121	18.932.418	18.932.418	18.883.188	18.883.188
	b Costs of taxes and social security	122	7.888.508	7.888.508	7.867.995	7.867.995
	c Duties on wages	123	4.733.105	4.733.105	4.720.797	4.720.797
	4 Depreciation	124	11.485.009	11.485.009	12.135.213	12.135.213
	5 Other costs	125	13.938.032	13.938.032	8.068.598	8.068.598
	6 Impairment (127+128)	126
	a fixed assets (excluding financial assets)	127
	b current assets (excluding financial assets)	128
	7 Provisions	129
	8 Other operating expenses	130	839.797	839.797	2.581.671	2.581.671
	FINANCIAL INCOME (132 up to 136)	131	46.392.326	46.392.326	18.511.347	18.511.347
	1 Interests, exchange rate difference, dividends with affiliates	132	1.210.223	1.210.223	1.155.967	1.155.967
	2 Interests, exchange rate difference, dividends with non-affiliates	133	1.230.523	1.230.523	1.098.334	1.098.334
	3 Part of income from affiliates and participated interests	134	43.951.580	43.951.580	16.257.046	16.257.046
	4 Non-realized financial income	135
	5 Other financial income	136
	FINANCIAL CHARGES (138 up to 141)	137	40.059.796	40.059.796	13.820.706	13.820.706
	1 Interests, exchange rate difference, dividends with affiliates	138	203.197	203.197	128.595	128.595
	2 Interests, exchange rate difference, dividends with non-affiliates	139	5.954.467	5.954.467	13.692.111	13.692.111
	3 Non-realized financial charges	140	33.902.132	33.902.132
	4 Other financial charges	141
	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	251.965.530	251.965.530	210.395.978	210.395.978
X.	TOTAL CHARGES (114+137+143 + 145)	147	236.211.746	236.211.746	193.287.094	193.287.094
XI.	PROFIT OR LOSS BEFORE TAXATION (146-147)	148	15.753.784	15.753.784	17.108.884	17.108.884
	1 Profit before taxation (146-147)	149	15.753.784	15.753.784	17.108.884	17.108.884
	2 Loss before taxation (147-146)	150
XII.	PROFIT TAX	151
XIII	PROFIT OR LOSS FOR THE PERIOD (148-151)	152	15.753.784	15.753.784	17.108.884	17.108.884
	1 PROFIT FOR THE PERIOD (149-151)	153	15.753.784	15.753.784	17.108.884	17.108.884
	2 LOSS FOR THE PERIOD (151-148)	154
	Your needs. Our drive.				MANAGEMENT INTERIM REPORT

Profit and loss account Reporting period: 01.01.2016. to 31.03.2016.

Company: AD Plastik d.d.

Item Cumulative Quarter Cumulative Quarter ind. 1 2 3 4 5 6 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 15.753.784 15.753.784 17.108.884 17.108.884 OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAXATION II. 158 6.021.873 6.021.873 (159 up to 165) 1 Exchange differences on translation of foreign operations 159 6.021.873 6.021.873 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 com 164 panies 7 Actuarial gains / losses on defined benefit plans 165 TAX ON OTHER COMPREHENSIVE INCOME FOR THE CURRENT III. 166 1.204.375 1.204.375 PERIOD IV. OTHER COMPREHENSIVE NET PROFIT OR LOSS (158-166) 167 4.817.498 4.817.498
OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD V. 168 20.571.282 20.571.282 17.108.884 17.108.884 (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
1 Attributable to equity holders 169
2 Attributable to minority interests 170

VI.	OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD
	1 Attributable to equity holders	169
	2 Attributable to minority interests	170

CONTENTS

Cash flow statement indirect method Reporting period: 01.01.2016. to 31.03.2016.

Company: 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	15.753.784	17.108.884
2 Depreciation	002	11.485.009	12.135.213
3 Increase of current liabilities	003
4 Decrease of current receivables	004
5 Decrease in stocks	005	8.495.307	3.644.735
6 Other increase of cash flow	006	780.119	8.242.491
I. Total increase of cash flow from operating activities (001 - 006)	007	36.514.219	41.131.323
1 Decrease of current liabilities	008	34.814.925	17.018.966
2 Increase of current receivables	009	30.114.300	34.277.830
3 Increase in stocks	010
4 Other decrease of cash flow	011
II. Total decrease of cash flow from operating activities (008 – 011)	012	64.929.225	51.296.796
A1 NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	013
A2 NET DECREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	014	28.415.006	10.165.473
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	427.745
4 Cash inflows from dividends	018
5 Other cash inflows from investment activities	019	4.814.499	5.735.977
III. Total cash inflows from investment activities (015-019)	020	5.242.244	5.735.977
1 Cash expenditures for purchase of fixed tangible and intangible assets	021	9.998.009	1.993.130
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	9.998.009	1.993.130
B1 NET INCREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (020-024)	025		3.742.847
B2 NET DECREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (024-020)	026	4.755.765
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	516.140	9.067.807
3 Other inflows from financial activities	029	33.902.132
V. Total cash inflows from financial activities (027-029)	030	34.418.272	9.067.807
1 Cash expenditures for the payment of credit principal and debentures	031
2 Cash expenditures for the payment of dividends
	032
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
C1 NET INCREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (030-036)	037	34.418.272	9.067.807
C2 NET DECREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (036-030)	038
Total cash flow increase (013-014+025-026+037-038)	039	1.247.501	2.645.181
Total cash flow decrease (014-013+026-025+038-037)	040
Cash and cash equivalents at the beginning of the period	041	1.800.522	3.413.687
Cash and cash equivalents increase	042	1.247.501	2.645.181
Cash and cash equivalents decrease Cash and cash equivalents at the end of the period	043 044	3.048.023	6.058.868

Statement of changes in equity

Reporting period: 01.01.2016. to 31.03.2016. Company: AD Plastik d.d.

Item 1	AOP ind. 2	Preceding year 3	Current year 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	32.050.802	31.538.929
4 Retained profit or loss carried over	004	12.724.371	45.275.033
5 Current year profit or loss	005	15.753.784	17.108.884
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	-17.685.772	-29.140.542
10 Total equity and reserves (AOP 001-009)	010	645.877.382	667.816.501
11 Exchange rate variations from net investments into foreign business operations	011	6.021.873
12 Current and deferred taxes (part)	012	-1.204.375
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 equity increase or decrease (AOP 011 - 016)	017	4.817.498
17 a Ascribed to holders of the holders company capital	018
17 b Ascribed to minority interest	019
Your needs. Our drive.			MANAGEMENT INTERIM REPORT	26

D Management's statement of responsibility

D

A

CONTENTS

D

Solin, April 27, 2016

Management's statement of responsibility

The financial statements of AD Plastik Group and the Company AD Plastik d.d. Solin are prepared in accordance with the International Financial Reporting Standards (IFRS) and the Croatian Law on Accounting.

The consolidated financial statements of AD Plastik Group and the financial statements of the Company AD Plastik d.d. for the period from January 1 to March 31, 2016, give a complete and true review of the assets and liabilities, profit and loss, financial position and business activities of the issuers and companies included in the consolidation as a whole. Your needs. Our drive. MANAGEMENT INTERIM REPORT 28MANAGEMENT REPORT

The management report for the period until March 31, 2016, contains an accurate and true display of the development and results of the business activities of the Company with a description of the most significant risks and uncertainties to which the Company is exposed.

President of the Management Board

Marinko Došen

Member of the Management Board for finance and accounting

Katija Klepo

The Company is registered at the Court Register of the Commercial Court of Split under the Registered Company Number (MBS): 060007090 Company Identification Number (OIB): 48351740621 IBAN: HR04 2340 0091 1101 5371 1, Privredna banka Zagreb d.d., Zagreb

The capital stock in the amount of HRK 419,958,400 was paid in full. AD Plastik issued a total of 4,199,584 of ordinary shares, in nominal amount of HRK 100. President of the Management Board: Marinko Došen Management Board members: Mladen Peroš, Ivica Tolić, Katija Klepo, Denis Fusek, Hrvoje Jurišić President of the Supervisory Board: Josip Boban

Your needs. Our drive.

SOLIN, APRIL 2016 WWW.ADPLASTIK.HR