Granolio d.d.

Quarterly Report • Oct 27, 2016

Consolidated financial results for the nine months period ended 30 September 2016 (unaudited)

General information on Granolio d.d.

GRANOLIO d.d. ("The Company") is a joint-stock company registered with the Commercial Court of Zagreb, Croatia.

The Company's tax number (OIB) is 59064993527, and its registration number (MBS) 080111595.

The Company's headquarter is located in Zagreb at Budmanijeva 5.

Subsidiaries

The Company holds 100% of the shares in the Zdenačka farma d.o.o. and Prerada Žitarica d.o.o. companies.

It has a controlling influence in the decision-making process in the Zdenka mliječni proizvodi d.o.o. and Žitar d.o.o companies. The above companies have been consolidated into the Granolio Group since 2011.

Subsidiary Žitar d.o.o. has founded another company, Žitar konto d.o.o., which is fully owned by it. Žitar konto d.o.o. financial statements are part of the consolidated financial statements.

Ownership in subsidiaries is presented in the organizational chart below:

The Group monitors its business operations through four business segments:

• Milling
• Dairy and cheese production
• Wholesale trade
• Other

Milling is the segment that comprises flour production and sale of flour. This business segment is comprised in the holding company exclusively.

Dairy and cheese production ("Dairy") comprises cheese production and cheese sale realized in the company Zdenka – mliječni proizvodi d.o.o., but also milk production and sale of milk by dairy farms in the companies Zdenačka farma d.o.o. and Žitar d.o.o.

Wholesale trade segment comprises grain and oilseed trade and trade of sowing materials performed by the companies Granolio d.d. and Žitar d.o.o.

The segment Other comprises animal feed production (Žitar d.o.o.), pig farming and beef cattle farming (Žitar d.o.o., beef cattle farming in the company Granolio d.d.), and rendering the silo services and the storage of trade goods (Granolio d.d., Žitar d.o.o. and Prerada žitarica d.o.o.).

Granolio Group's financial indicators for the first nine months period of 2016

in thousands of HRK
	1-9 2016	1-9 2015	change
Operating income	581,204	594,561	(13,357)	(2%)
Operating expenses	(561,832)	(579,751)	17,919	3%
EBIT	19,372	14,810	4,563	31%
EBIT margin	3%	2%
EBITDA	42,686	37,438	5,248	14%
EBITDA margin	7%	6%
Net financial result	(21,260)	(14,708)	(6,552)	(45%)
Net result for the period	(1,887)	102	(2,509)	2460%
Result attributable to the Group	(3,068)	(2,365)	(703)	(30%)
Minority interest	1,181	2,467	(1,287)	52%

Comparing to the corresponding period last year, operating result before financial income and expenses and tax (EBIT) has improved, and one of the reasons for it is also that EBIT for the first nine months of 2015 comprised one-off expenses which were the result of rationalization of the production process, while in the first nine months period of 2016 no such costs incurred.

in thousands of HRK Financial indicators
	30.9.2016	31.12.2015	change
Net assets (Capital and reserves)	230,211	232,514	(2,303)	(1%)
Total debt	615,993	543,865	72,128	13%
Cash and cash equivalents	2,202	22,426	(20,224)	(90%)
Financial assets	53,832	29,770	24,062	81%
Net debt	559,959	491,669	68,290	14%
Net debt/EBITDA	7.2	6.8
EBITDA for the last 12 months	77,826	72,578

* Financial assets are comprised of financial loans, securities and deposits

Separate business results for the first nine months period of 2016

Granolio d.d. in thousands of HRK
	1-9 2016	1-9 2015	change
Operating income	395,256	421,034	(25,778)	(6%)
EBIT	18,470	8,640	9,829	(114%)
margin %	5%	2%
EBITDA	26,149	16,151	9,998	62%
margin %	7%	4%
Net financial result	(19,197)	(10,144)	(9,053)	(89%)
Net result	(727)	(1,503)	776	52%
margin %	(0.2%)	(0.4%)

Comparing to the corresponding period last year, despite the lower sales income, the Company's key operational indicators for the first nine months period of 2016 are more favourable. Negative net result is the result of the negative net financial result.

Zdenka - mliječni proizvodi d.o.o.	in thousands of HRK

	1-9 2016	1-9 2015	change
Operating income	123,698	113,939	9,759	9%
EBIT	2,167	5,034	(2,867)	57%
margin %	2%	4%
EBITDA	11,541	14,035	(2,494)	(18%)
margin %	9%	12%
Net financial result	(778)	(1,627)	848	52%
Net result	1,389	3,408	(2,019)	59%
margin %	1%	3%

Income increase was noted in the sales of almost all product categories, especially in the sales of semi-hard and processed cheese, while slight income decrease was noted in the sales of hard cheese due to lower sales prices. Income increase is the result of increased sales quantity of products.

Income increase is noted in the sales income realized on the domestic market, as well as on the foreign markets. The main portion of export is realized from trading with neighboring countries, mainly BiH, Slovenia, Serbia and FYR Macedonia (app. 84% of total export).

Žitar d.o.o. (consolidated) in thousands of HRK

	1-9 2016	1-9 2015	change
Operating income	97,283	58,529	38,754	66%
EBIT	1,622	3,399	(1,777)	(52%)
margin %	2%	6%
EBITDA	5,513	7,032	(1,519)	(22%)
margin %	6%	12%
Net financial result	(655)	(1,882)	1,227	65%
Net result	966	1,517	(550)	36%
margin %	1%	3%

The company Žitar has noted significant income increase in the segment of grain and oilseed trade and trade of sowing materials. In the first nine months of 2016 significant business transaction of sale of wheat was agreed in the total amount of HRK 44 million, part of which was realized within the Granolio Group. Other than the sale of wheat, increase is noted in the sale of fertilizers as well. When compared to the same period last year, the company has realized slightly lower sales margins in the wholesale segment.

When compared to the same period last year, the value of EBITDA is lower partly due to lower sales margins realized in the wholesale segment, and partly due to increased staff costs, as result of increased average number of employees.

Zdenačka farma d.o.o. in thousands of HRK
	1-9 2016	1-9 2015	change
Operating income	13,416	14,761	(1,345)	(9%)
EBIT	(2,059)	(1,047)	(1,012)	97%
margin %	(15%)	(7%)
EBITDA	(10)	1,123	(1,133)	(101%)
margin %	(0%)	8%
Net financial result	(592)	(1,043)	451	43%
Net result	(2,651)	(2,090)	(561)	27%
margin %	(20%)	(14%)

During the first nine months of 2016 total sale of milk from Zdenačka farma d.o.o. was 3.6 million kilos. Average sales price realized in the first nine months of 2016 was 12% lower than the average sales price realized during the same period last year.

At the beginning of last year the Company had incurred one-off cost in the amount of HRK 0.5 million. Expenses incurred in 2016 do not comprise any extraordinary expenses. Other operating expenses are app. at the same level as in the same period last year, while net loss increase is the result of lower sales prices of milk.

Prerada žitarica d.o.o. in thousands of HRK

	1-9 2016	1-9 2015	change
Operating income	445	524	(79)	(15%)
EBIT	(627)	(723)	96	13%
margin %	(141%)	(138%)
EBITDA	(308)	(410)	103	(25%)
margin %	(69%)	(78%)
Net financial result	(37)	(12)	(25)	(204%)
Net result	(664)	(735)	71	10%
margin %	(149%)	(140%)

Prerada žitarica d.o.o. is the company which main activities are storage of goods, and storage and drying of grains. Due to the seasonality of its business operations, the company realizes its more significant turnover near the end of the year, while significant portion of expenses are largely fixed.

Employees

In the first nine months period of 2016 the Group employed 473 employees based on man-hour basis (in the first nine months period of 2015: 469 employees).

Environment

Regarding the environmental protection, the Group has implemented comprehensive and systematic solutions and established environment-friendly production processes.

Other

Supervisory Board has approved Granolio Group's financial statements for the first nine months period of 2016.

Annex 1. Reporting period	1.1.2016 to	30.9.2016
	Quarterly financial report TFI-POD
Tax number (MB): 01244272
Company registration number 080111595 (MBS):
59064993527 Personal identification number (OIB): Issuing company: GRANOLIO d.d.
Postal code and place 10000	Zagreb
Street and house number: BUDMANIJEVA 5
E-mail address: granolio@granolio.hr
Internet address www.granolio.hr
Municipality/city code and name ZAGREB 133
County code and name 21	GRAD ZAGREB	Number of employees: 505
Consolidated report: YES		(period end) NKD code: 1061
Companies of the consolidation subject (according to IFRS):	Seat:	MB:
GRANOLIO D.D.		ZAGREB 01244272
ZDENAČKA FARMA D.O.O.		VELIKI ZDENCI 02095777
PRERADA ŽITARICA D.O.O.		GRUBIŠNO POLJE 02095696
ZDENKA - MLIJEČNI PROIZVODI D.O.O.		VELIKI ZDENCI 01623982
ŽITAR D.O.O.		DONJI MIHOLJAC 01443119
ŽITAR KONTO D.O.O.		DONJI MIHOLJAC 04212517
Bookkeeping service:
Contact person: JASENKA KORDIĆ
(only surname and name) Telephone: 01/6320261		01/6320224 Telefaks:
E-mail address: jkordic@granolio.hr

L.S.

(signature of the person authorized to represent the company)

Balance Sheet as of 30.09.2016.

Company: GRANOLIO d.d.
Position	AOP	Previous period	Current period
1	2	3	4
ASSETS
A) RECEIVABLES FOR SUBSCRIBED BUT NOT PAID-IN CAPITAL	001
B) LONG-TERM ASSETS (003+010+020+029+033)	002	596.406.028	584.176.711
I. INTANGIBLE ASSETS (004 do 009)	003	188.875.484	187.621.502
1. Assets development	004		0
2. Concessions, patents, licenses, trademarks, service marks, software and other rights	005	121.134.245	121.129.763
3. Goodwill	006	60.379.072	60.379.072
4. Prepayments for purchase of intangible assets	007		0
5. Intangible assets in preparation	008		0
6. Other intangible assets	009	7.362.167	6.112.667
II. TANGIBLE ASSETS (011 do 019)	010	377.614.949	368.785.329
1. Land	011	27.362.704	27.435.135
2. Buildings	012	234.107.824	227.530.964
3. Plant and equipement	013	73.907.486	70.692.123
4. Tools, working inventory and transportation assets	014	3.051.261	3.748.563
5. Biological assets	015	11.399.835	10.939.621
6. Prepayments for tangible assets	016	326.290 24.522.991	578.098 24.983.596
7. Tangible assets in progress	017	85.030	83.592
8. Other tangible assets 9. Investments in buildings	018 019	2.851.529	2.793.637
III. LONG-TERM FINANCIAL ASSETS (021 do 028)	020	29.900.594	27.754.880
1. Investments (shares) with related parties	021		0
2. Loans given to related parties	022		0
3. Participating interest (shares)	023	20.472.190	20.472.190
4.Loans to entrepreneurs in whom the entity holds participating interests	024		0
5. Investments in securities	025		0
6. Loans, deposits and similar assets	026	9.428.404	7.282.690
7. Other long - term financial assets	027		0
8. Investments accounted by equity method	028		0
IV. RECEIVABLES (030 do 032)	029	15.000	15.000
1. Receivables from related parties	030		0
2. Receivables from based on trade loans	031		0
3. Other receivables	032	15.000	15.000
V. DEFERRED TAX ASSET	033		0
C) SHORT TERM ASSETS (035+043+050+058)	034	355.387.854	451.376.490
I. INVENTORIES (036 do 042)	035	108.938.185	134.852.009
1. Raw materials and supplies	036	56.935.548	42.970.819
2. Work in progress	037	10.424.738	15.883.550
3. Finished goods 4. Merchandise	038 039	25.790.300 15.731.197	22.395.277 53.586.645
5. Prepayments for inventories	040	56.402	15.716
6. Long term assets held for sale	041		0
7. Biological assets	042		0
II. RECEIVABLES (044 do 049)	043	194.253.687	260.490.565
1. Receivables from related parties	044	507.912	505.016
2. Accounts receivable	045	172.973.897	236.844.349
3. Receivables from participating parties	046	522.223	246.196
4. Receivables from employees and members of related parties	047	34.063	108.758
5. Receivables from government and other institutions	048	13.536.152	10.467.909
6. Other receivables	049	6.679.440	12.318.337
III. SHORT TERM FINANCIAL ASSETS (051 do 057)	050	29.770.051	53.831.800
1. Shares (stocks) in related parties	051		0
2. Loans given to related parties	052	20.120.844	20.288.658
3. Participating interests (shares)	053		0
4. Loans to entrepreneurs in whom the entity holds participating interests	054		0
5. Investments in securities	055	696.026	768.876
6. Loans, deposits, etc.	056	8.953.181	32.774.265
7. Other financial assets IV. CASH AND CASH EQUIVALENTS	057 058	22.425.931	0 2.202.116
D) PREPAID EXPENSES AND ACCRUED REVENUE	059	5.307.462	11.993.771
E) TOTAL ASSETS (001+002+034+059)	060	957.101.343	1.047.546.972
F) OFF-BALANCE RECORDS	061	16.245.585	18.615.589

EQUITY AND LIABILITIES
A) ISSUED CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	232.514.314	230.211.417
I. SUBSCRIBED SHARE CAPITAL	063	19.016.430	19.016.430
II. CAPITAL RESERVES	064	84.186.547	84.186.547
III.RESERVES FROM PROFIT (066+067-068+069+070)	065	183.484	1.083.227
1. Reserves prescribed by low	066	183.484	283.227
2. Reserve for own shares	067		800.000
3. Treasury shares and shares (deductible items)	068
4. Statutory reserves	069
5. Other reserves	070
IV. REVALUATION RESERVES	071	64.473.012	62.289.720
V. RETAINED EARNINGS OR ACCUMULATED LOSS (073-074)	072	-5.125.636	6.892.227
1. Retained earnings	073		6.892.227
2. Accumulated loss	074	5.125.636
VI. PROFIT/LOSS FOR THE CURRENT YEAR (076-077)	075	11.149.791	-3.068.057
1. Profit for the current year	076	11.149.791	0
2. Loss for the current year	077		3.068.057
VII. MINORITY INTEREST	078	58.630.686	59.811.323
B) PROVISIONS (080 do 082)	079	249.821	0
1. Provisions for pensions, severance pay and similar libabilities	080
2. Provisions for tax liabilities	081
3. Other provisions	082	249.821
C) LONG - TERM LIABILITIES (084 do 092)	083	383.292.405	359.475.131
1. Liabilites to related parties	084		0
2. Liabilities for loans, deposits, etc.	085	11.453	11.261
3. Liabilities to banks and other financial institutions	086	366.923.848	343.641.553
4. Liabilities for received prepayments	087		0
5. Accounts payable	088	238.851	238.851
6. Liabilities arising from debt securities	089		0
7. Liabilities to entrepreneurs in whom the entity holds participating interests	090		0
8. Other long-term liabilities	091		11.037
9. Deferred tax liability	092	16.118.253	15.572.430
D) SHORT - TERM LIABILITIES (094 do 105)	093	326.691.156	442.413.574
1. Liabilites to related parties	094		0
2. Liabilities for loans, deposits, etc.	095		80.000
3. Liabilities to banks and other financial institutions	096	96.041.815	162.988.948
4. Liabilities for received prepayments	097	2.882.763	4.968.849
5. Accounts payable	098	130.611.839	152.904.340
6. Liabilities arising from debt securities	099	80.887.770	109.270.776
7. Liabilities to entrepreneurs in whom the entity holds participating interests	100		8.750
8. Liabilities to emloyees	101	2.337.948	2.417.908
9. Liabilities for taxes, contributions and similar fees	102	10.775.125	2.780.115
10. Liabilities to share - holders	103		0
11. Liabilities for long-term assets held for sale	104		0
12. Other short - term liabilities	105	3.153.896	6.993.888
E) DEFFERED SETTLEMENTS OF CHARGES AND INCOME DEFERRED TO FUTURE PERIOD	106	14.353.647	15.446.849
F) TOTAL – CAPITAL AND LIABILITIES (062+079+083+093+106)	107	957.101.343	1.047.546.972
G) OFF-BALANCE RECORDS	108	16.245.585	18.615.589
APPENDIX to balance sheet(to be filled in by entrepreneur that prepares consolidated
annual financial report)
CAPITAL AND RESERVES
1. Attributed to equity holders of parent company	109	173.883.628	170.400.093
2. Attributable to minority interest	110	58.630.686	59.811.323

Company: GRANOLIO d.d.
Position	AOP		Previous period Previous period Current period Current period
		Cummulative	Quarter	Cummulative	Quarter
1	2	3	4	5	6
I. OPERATING REVENUE (112 do 113)	111	594.560.512	212.487.078	581.203.954	221.915.933
1. Sales revenue	112	574.114.552	208.612.977	562.550.069	214.367.277
2. Other operating revenues	113	20.445.960	3.874.101	18.653.886	7.548.656
II. OPERATING COSTS (115+116+120+124+125+126+129+130)	114	579.750.806	204.551.143	561.831.603	210.782.786
1. Changes in value of work in progress and finished products	115	-4.820.077	2.911.218	-2.270.528	-1.458.024
2. Material costs (117 do 119)	116	508.121.012	178.021.362	491.218.833	187.267.309
a) Raw material and material costs	117	294.603.281	101.115.137	250.940.587	99.287.530
b) Cost of goods sold	118	175.874.195	62.825.268	201.155.282	71.921.348
c) Other external costs	119	37.643.536	14.080.957	39.122.964	16.058.431
3. Staff costs (121 do 123)	120	31.813.160	10.880.373	33.784.236	11.759.144
a) Net salaries and wages	121	19.421.269 7.760.506	6.598.137 2.708.771	20.525.672 8.292.779	7.135.727 2.894.380
b) Tax and contributions from salary expenses	122	4.631.385	1.573.465	4.965.784	1.729.037
c) Contributions on gross salaries	123
4. Depreciation and amortisation	124	22.625.993	7.494.693	23.294.506	7.861.300
5. Other costs	125	8.671.346	2.644.102	6.555.651	2.475.246
6. Impairment (127+128)	126	2.075	1.904	19.331	0
a) Impairment of long-term assets (financial assets excluded)	127	0	0	0	0
b) Impairment of short - term assets (financial assets excluded)	128	2.075 0	1.904 0	19.331 0	0 0
7. Provisions 8. Other operating costs	129 130	13.337.298	2.597.491	9.229.574	2.877.810
III. FINANCIAL INCOME (132 do 136)	131	11.015.924	2.152.217	3.432.596	1.043.625
1. Interest income, foreign exchange gains, dividends and similar income from related parties	132	0	0	0	0
2. Interest income, foreign exchange gains, dividends and similar income from non - related parties and other entities	133	6.490.180	1.736.693	2.761.014	636.824
3. Share in income from affiliated entrepreneurs and participating interests	134	0	0	19.794	0
4. Unrealized gains (income) from financial assets	135	0	0	0	0
5. Other financial income	136	4.525.745	415.523	651.787	406.801
IV. FINANCIAL EXPENSES (138 do 141)	137	25.723.635	7.356.176	24.692.193	8.496.662
1. Interest expenses, foreign exchange losses, dividends and similar expenses from related parties	138	0	0	0	0
2. Interest expenses, foreign exchange losses, dividends and similar expenses from non -	139	25.572.753	7.355.871	24.595.917	8.495.254
related parties and other entities
3. Unrealized losses (expenses) on financial assets	140	0	0	0	0
4. Other financial expenses	141	150.883	304	96.276	1.408
V. INCOME FROM INVESTMENT - SHARE IN PROFIT OF ASSOCIATED ENTREPRENEURS	142	0	0	0	0
VI. LOSS FROM INVESTMENT - SHARE IN LOSS OF ASSOCIATED ENTREPRENEURS VII. EXTRAORDINARY - OTHER INCOME	143 144	0 0	0 0	0 0	0 0
VIII. EXTRAORDINARY - OTHER EXPENSES	145	0	0
IX. TOTAL INCOME (111+131+144)	146	605.576.436	214.639.295	584.636.550	222.959.558
X. TOTAL EXPENSES (114+137+143+145)	147	605.474.442	211.907.318	586.523.796	219.279.448
XI. PROFIT OR LOSS BEFORE TAXES (146-147)	148	101.995	2.731.977	-1.887.246	3.680.110
1. Profit before taxes (146-147)	149	101.995	2.731.977	0	3.680.110
2. Loss before taxes (147-146)	150	0	0	1.887.246	0
XII. PROFIT TAX	151
XII. PROFIT OR LOSS FOR THE PERIOD (148-151)	152	101.995	2.731.977	-1.887.246	3.680.110
1. Profit for the period (149-151)	153	101.995	2.731.977	0	3.680.110
2. Loss for the period (151-148)	154	0	0	1.887.246	0
ADDITION TO PROFIT AND LOSS ACCOUNT (only for consolidated financial statements)
XIV. PROFIT OR LOSS FOR THE PERIOD
1. Attributed to equity holders of parent company	155	-2.365.376	1.528.555	-3.068.057	3.156.705
2. Attributable to minority interest	156	2.467.371	1.203.422	1.180.811	523.405
STATEMENT OF OTHER COMPREHENSIVE INCOME (only for IFRS adopters)
I. PROFIT OR LOSS FOR THE PERIOD (=152)	157	101.995	2.731.977	-1.887.246	3.680.110
II. OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAXES (159 TO 165)	158	0	0	0	0
1. Exchange differences on translation of foreign operations	159
2. Movements in revaluation reserves of long - term tangible and intangible assets	160
3. Profit or loss from reevaluation of financial assets available for sale	161
4. Gains or losses on efficient cash flow hedging	162
5. Gains or losses on efficient hedge of a net investment in foreign countries	163
6. Share in 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 PERIOD	166
IV. NET OTHER COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (158-166)	167	0	0	0	0
V. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (157+167)	168	101.995	2.731.977	-1.887.246	3.680.110
ADDITION TO STATEMENT OF OTHER COMPREHENSIVE INCOME (only for consolidated financial statements)
VI. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD
1. Attributed to equity holders of parent company	169	-2.365.376	1.528.555	-3.068.057	3.156.705
2. Attributed to minority interest	170	2.467.371	1.203.422	1.180.811	523.405

Income statement period 01.01.2016. to 30.09.2016.

Cash flow statement - indirect method period 01.01.2016. to 30.09.2016.

Company: GRANOLIO d.d.
Position	AOP	Previous period	Current period
1	2	3	4
CASH FLOWS FROM OPERATING ACTIVITIES
1. Profit before tax	001	101.995	-1.887.246
2. Depreciation and amortisation	002	22.625.993	23.294.506
3. Increase in short term liabilities	003	102.555.502	22.592.126
4. Decrease in short term receivables	004
5. Decrease in inventories 6. Other increase in cash flow	005 006	22.844.471	25.594.883
I. Total increase in cash flow from operating activities (001 to 006)	007	148.127.960	69.594.269
1. Decrease in short term liabilities	008
2. Increase in short term receivables	009	60.528.821	66.860.673
3. Increase in inventories	010	3.722.428	24.800.052
4. Other decrease in cash flow	011	13.816.798	14.510.698
II. Total decrease in cash flow from operating activities (008 to 011)	012	78.068.047	106.171.424
A1) NET INCREASE IN CASH FLOW FROM OPERATING ACTIVITIES (007-
012)	013	70.059.914	0
A2)NET DECREASE IN IN CASH FLOW FROM OPERATING ACTIVITIES	014	0	36.577.155
(012-007)
CASH FLOW FROM INVESTING ACTIVITIES
1. Cash inflows from sales of long-term tangible and intangible assets	015	6.251	326.478
2. Cash inflows from sales of equity and debt instruments	016	26.467.534	30.515.237
3. Interests receipts	017	3.159.357	925.381
4. Dividend receipts	018	0	19.794
5. Other cash inflows from investing activities	019	492.437	131.027
III. Total cash inflows from investing activities (015 to 019)	020	30.125.579	31.917.917
1. Cash outflow for purchase of long-term tangible and intangible assets	021	11.540.910	12.225.410
2. Cash outflow for acquisition of equity and debt financial instruments	022	21.130.000	52.728.694
3. Other cash outflow for investing activities	023	115.640	73.568
IV. Total cash outflow for investing activities (021 do 023)	024	32.786.549	65.027.672
B1) NET INCREASE IN CASH FLOW FROM INVESTING ACTIVITIES (020- 024)	025	0	0
B2) NET DECREASE IN CASH FLOW FROM INVESTING ACTIVITIES (024-	026	2.660.970	33.109.754
020)
CASH FLOW FROM FINANCING ACTIVITIES
1. Cash inflow from issuing property and debt financial instruments	027
2. Proceeds from the credit principal, promissory notes, borrowings and other loans	028	768.251.955	269.677.153
3. Other proceeds from financial activities	029		5.390.050
V. Total cash inflows from financial activities (027 to 029)	030	768.251.955	275.067.203
1. Cash outflow for repayment of credit principal and bonds	031	751.327.401	221.956.143
2. Cash outflow for dividends paid	032	0	950.822
3. Cash outflow for financial lease	033	3.095.831	2.697.144
4. Cash outflow for purchase of treasury shares	034
5. Other cash outflow for financial activities VI. Total cash outflow for financial activities (031 to 035)	035 036	68.311.600 822.734.832	225.604.109
C1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES (030-
036)	037	0	49.463.094
C2) NET DECREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES (036- 030)	038	54.482.877	0
Total increase in cash flow (013 – 014 + 025 – 026 + 037 – 038)	039	12.916.067	0
Total decrease in cash flow (014 – 013 + 026 – 025 + 038 – 037)	040	0	20.223.815
Cash and cash equivalents at the beginning of the period	041	3.350.236	22.425.931
Increase of cash and cash equivalents	042	12.916.067	0
Decrease of cash and cash equivalents	043	0	20.223.815
Cash and cash equivalents at the end of the period	044	16.266.303	2.202.116

period 30.9.2016 1.1.2016 to
Position	AOP	Previous year	Current year
1		3	4
1. Subscribed capital	001	19.016.430	19.016.430
2. Capital reserves	002	84.190.947	84.186.547
3. Reserves from profit	003	183.484	1.083.227
4. Retained earnings or accumulated loss	004	-5.828.174	6.892.227
5. Profit or loss for the current year	005	-2.365.376	-3.068.057
6. Revaluation of long - term tangible assets	006	65.200.776	62.289.720
7. Revaluation of intangible assets	007
8. Revaluation of financial assets available for sale	008
9. Other revaliuation	009	0	0
10. Total capital and reserves (AOP 001 to 009)	010	160.398.086	170.400.094
11. Currency gains and losses arising from net investement in foreign operations	011
12. Current and deferred taxes (part)	012	545.823	545.823
13. Cash flow hedging	013
14. Changes in accounting policy	014
15. Correction of significant errors in prior period	015
16. Other changes of capital	016	-3.322.501	-4.029.358
17. Total increase or decrease in capital (AOP 011 to 016)	017	-2.776.678	-3.483.535
17 a. Attributed to equity holders of parent company	018	-2.776.678	-3.483.535
17 b. Attributed to minority interest	019

STATEMENT OF CHANGES IN EQUITY