Quarterly Report • Oct 27, 2016
Quarterly Report
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for the period from 1 January 2016 to 30 September 2016
(fourth quarter in the prior year), and ii) the consolidation of destination Baška costs during the first six months of this year.
Valamar Riviera established a strategic cooperation with TUI Northern Europe Limited, TUI UK, and TUI Nordic Holding AB. This agreement includes the branding of the Family Life Bellevue Resort 4* in Rabac as the first Family Life concept in Croatia according to TUI's standards as well as a three-year cooperation (seasons 2017-2019). Valamar Riviera also concluded an allotment contract with DER Touristik Köln GmbH for a three-year period (seasons 2017-2019) with occupancy guarantee. With this agreement the occupancy of the new 4* resorts will be additionally ensured.
Valamar Riviera continues with its 2017 investments according to plan: they amount to over HRK 750 million and represent the largest annual investment in the company's portfolio. For the most part, they include investment projects for the Family Life Bellevue Resort 4* and Girandella Resort 4* in Rabac, and the continuation. The rest includes projects aiming at upgrading campsites towards the Premium segment and a range of smaller investments in improving quality and operating efficiency.
compared to 32.7 % in 2015. For more details, see "Outlook 2016" on page 18.
| Significant Business Events | 6 |
|---|---|
| Results of the Group | 9 |
| 2016 Outlook | 18 |
| Results of the Company | 19 |
| Investments 2016 | 20 |
| Investments 2017 | 22 |
| The Risks of the Company and the Group | 26 |
| Corporate Governance | 29 |
| Related-party Transactions | 30 |
| Branch Offices of the Company | 30 |
| Valamar Riviera Share | 31 |
| Corporate Social Responsability | 33 |
| Awards and Certificates 2016 | 35 |
| Integrated Report 2015 | 36 |
| Other Information | 38 |
| Responsibility for the Quarterly Financial Statements | 39 |
| Quarterly Financial Statements | 40 |
Valamar Riviera is the leading Croatian tourism company and one of the leading tourism groups in the Republic of Croatia. It is one of the largest investors in Croatian tourism and hospitality, with investments reaching HRK 3 billion in the last 13 years. It owns two brands: Camping Adriatic and Valamar Hotels and Resorts. In October 2016 Valamar Riviera acquired 40.08% of Imperial d.d. Rab. After the acquisition process is finalized the Group will be present in five attractive destinations along the Adriatic coast, from Istria and Kvarner to Dubrovnik, and will manage about 12 per cent of categorized tourist accommodation. With the Imperial hotel group Valamar Riviera's portfolio of hospitality properties will include thirty hotels and resorts and fifteen camping resorts. It will accommodate more than 50,000 guests per day in over 20,000 accommodation units, which will confirm its status as the largest tourism group in Croatia in terms of accommodation capacity. Valamar Riviera promotes the interests of all its stakeholders: guests, suppliers and partners, local communities and destinations, around 21,000 shareholders, over 4,400 people employed during peak season and society at large. The stakeholders' interests are actively promoted through Valamar Riviera's principles of sustainable growth, development and corporate social responsibility. The company aims at growing and developing further through portfolio investments, pu-rsuing new acquisitions and partnerships, developing its destinations and human resources, as well as increased operational efficiency.
On 31 March 2016, pursuant to the decision of the Commercial Court in Pazin, the company Hoteli Baška d.d. was merged with the company Valamar Riviera d.d. Accordingly, Valamar Riviera became the universal successor to Hoteli Baška. Since Valamar Riviera was the sole shareholder of Hoteli
Baška, Valamar Riviera's General Assembly was not held pursuant to Article 531(1) of the Companies Act. Please note that on 13 January 2016, the subsidiaries Baškaturist d.o.o., Mirta Bašćanska d.o.o., and Vala Bašćanska d.o.o., where Valamar Riviera held 100% stake, were merged with the subsidiary Hoteli Baška d.d.; following the mergers, Valamar Riviera d.d. became Hoteli Baška d.d.'s sole shareholder. The consolidation of the portfolio of hospitality properties, management and shareholding structure into a single strategic company has allowed for a more transparent corporate governance and streamlined operations, as well as giving additional boost to the balance sheet assets. In destination Baška Valamar Riviera sees a clear potential for applying the experience gained in its other destinations. Continual investments in employees, products, services and experiences have created a new shareholder value. With this merger was created an additional value from the synergy of the two companies for both the Hoteli Baška employees and the local community. In the forthcoming period, the key activities will be focused on planning and elaborating future investments in destination Baška, and developing the whole destination Krk where Valamar Riviera has taken over the leading position.
On 27 April 2016, Valamar Riviera's General Assembly was held, during which the following was stated:
During its session on 5 March 2016, the Supervisory Board approved a HRK 196.7 million investment in the Family Life Bellevue Resort 4* in Rabac to be realized for season 2017. Furthermore, approval was given to establish a strategic cooperation with TUI Northern Europe Limited, TUI UK, and TUI Nordic Holding AB. The purpose of this cooperation is the branding of the Family Life Bellevue Resort as the first Family Life concept in Croatia according to TUI's standards and ensuring a three-year cooperation (seasons 2017-2019) with occupancy guarantee. Over a period of three years, TUI plans to bring about 80,000 guests, thus ensuring over 400,000 overnights, primarily by creating new air travel markets.
Valamar Riviera has concluded an allotment contract with DER Touristik Köln GmbH for a three-year period (seasons 2017-2019) with occupancy guarantee. With this agreement the occupancy of the new Valamar Girandella Resort 4* will be further ensured. The two projects, Family Life Bellevue Resort 4* and Valamar Girandella Resort 4*, are part of a strategic development plan to reposition destination Rabac as a 4* vacation destination in the period from 2016 to 2018, for which a EUR 56 million investment framework has been planned. This autumn and winter HRK 400 million will be invested in destination Rabac in order to upscale the category and overall service to a 4* level. With these investments, Valamar Riviera creates new value for the whole destination: besides new job openings, this will have a positive impact on the guest structure and product quality, not to mention the standard of living and quality of life in the destination.
On 23 March 2016 Valamar Riviera concluded a Credit agreement with the Croatian Bank for Reconstruction and Development for the amount of EUR 24,291,114 (in HRK equivalent) maturing in 2033. The Supervisory Board approved the credit agreements with the Croatian Bank for Reconstruction and Development for the amount of EUR 43,639,490 and Raiffeisenbank Austria d.d. Zagreb for a maximum amount up to EUR 38,000,000 at its session held on 27 October 2016. These funds are earmarked for financing the 2017 investments which includes the following projects: Valamar Girandella Resort 4*, campsite Krk, campsite Ježevac,
campsite Škrila, Family Life Bellevue Resort 4*, campsite Lanterna and campsite Marina.
On 30 June 2016, pursuant to the decision of the Commercial Court in Pazin, the company Bastion upravljanje d.o.o. merged with the company Valamar Riviera d.d. Accordingly, Valamar Riviera d.d. became Bastion upravljanje d.o.o.'s universal successor.
On 20 September 2016 Valamar Riviera concluded a Purchase and Transfer Agreement with the Republic of Croatia, the State Agency For Deposit Insurance And Bank Resolution, the Croatian Pension Insurance Institute and the Restructuring And Sale Center for the acquisition of Imperial d.d.'s shares. On 12 October 2016, the company acquired 318,446 shares (HRK 819 per share) upon payment of the contracted amount of HRK 260,807,274. The acquired shares represent 50.08% of Imperial d.d. share capital. Valamar Riviera has also concluded a Cooperation Agreement with AZ d.o.o. društvo za upravljanje obveznim mirovinskom fondom (a mandatory pension fund management company) from Zagreb, acting in its own name and on behalf of the mandatory pension funds it manages (category A and B). With this agreement the two companies establish joint action towards Imperial d.d. Rab, and pursuant to its provisions, on 13 October 2016 Valamar Riviera transferred 63,586 Imperial d.d's shares to AZ d.o.o. The transferred shares represent 10% of Imperial d.d. share capital, while Valamar Riviera retains the other 40.08%.
management and disposal of assets owned by Republic of Croatia and other regulations.
1 Restructuring and Sale Centre is a legal entity with public authorities that performs professional activities in the scope and competence stipulated under the Law on
The Company's Management Board hereby presents the quarterly financial statements for the third quarter of 2016 (from 1 July to 30 September 2016) and for the first nine months of 2016 (from 1 January 2016 to 30 September 2016). These statements must be viewed in the context of the mentioned merger-related changes, and they provide information on the state of the Company and Group, as well as significant events.
The Company's income statement for the reviewed period includes the merged company Valamar hoteli i ljetovališta d.o.o. data for the period following the merger, i.e. as of 28 February 2015, Bastion upravljanje d.o.o. data for the period following the merger i.e. 1 July 2016 , as well as the data for the merged company Hoteli Baška d.d. for the period following the merger, i.e. as of 1 April 2016. Please note that the 2016 data are not fully comparable to the data for the previous period, as the latter do not include, until the time of the merger, the data for the merged companies Valamar hoteli i ljetovališta d.o.o., Bastion upravljanje d.o.o. and Hoteli Baška d.d
The Group's income statement for the reviewed period includes the data for the following companies: Puntižela d.o.o., Bastion upravljanje d.o.o., Elafiti Babin kuk d.o.o., Magične stijene d.o.o., Palme turizam d.o.o., Pogača Babin Kuk d.o.o., Bugenvilia d.o.o., and Hoteli Baška d.d. (merged on 31 March 2016), while the data for the companies Mirta Bašćanska d.o.o., Vala Bašćanska d.o.o., and Baškaturist d.o.o. are included until the day of their merger to the company Hoteli Baška d.d. (until 13 January 2016). Thus, the data for 2016 are not fully comparable to the data for the previous period, as the latter do not include, until the date of consolidation (i.e. 1 July 2015) the data for the following companies: Hoteli Baška d.d., Mirta Bašćanska d.o.o., Vala Bašćanska d.o.o., and Baškaturist d.o.o.
| (in HRK) | 1 - 9/2015 | 1 - 9/2016 | 2016/2015 |
|---|---|---|---|
| Total revenues | 1,253,273,546 | 1,487,365,977 | 18.7% |
| Sales revenues | 1,204,362,692 | 1,382,496,771 | 14.8% |
| Board revenues (accomodation and board revenues)3 | 999,766,001 | 1,127,157,104 | 12.7% |
| Operating costs4 | 651,000,016 | 739,558,085 | 13.6% |
| EBITDA5 | 555,902,311 | 656.973.820 | 18,2% |
| Extraordinary operations result and one-off items6 | -2,410,902 | 7,721,543 | / |
| Adjusted EBITDA7 | 558,313,213 | 649,252,277 | 16.3% |
| EBIT | 377,241,242 | 459,598,404 | 21.8% |
| Adjusted EBIT7 | 379,652,144 | 451,876,861 | 19.0% |
| EBT | 344,893,157 | 497,244,496 | 44.2% |
| EBT margin | 28.2% | 35.4% | 720 bp |
| EBITDA margin | 45.5% | 46.7% | 120 bp |
| Adjusted EBITDA margin7 | 45.7% | 46.2% | 50 bp |
| 31/12/2015 | 30/9/2016 | 2016/2015 | |
|---|---|---|---|
| Net debt8 | 1,082,520,078 | 759,204,723 | -29.9% |
| Cash and cash equivalents | 318,755,282 | 653,431,032 | 105.0% |
| Market capitalization9 | 2,970,629,728 | 4,241,544,129 | 42.8% |
| EV10 | 4,053,149,806 | 5,000,748,852 | 23.4% |
| DPS11 | 0.55 | 0.60 | 9.1% |
| 1 - 9/2015 | 1 - 9/2016 | 2016/2015 | |
|---|---|---|---|
| Number of accommodation units (capacity) | 17,783 | 18,072 | 1.6% |
| Accommodation units sold | 2,006,275 | 2,152,050 | 7.3% |
| Overnights | 4,567,926 | 4,926,274 | 7.8% |
| ADR12 (in HRK) | 498 | 524 | 5.2% |
| RevPAR13 (in HRK) | 56,219 | 62,370 | 10.9% |
In the first nine months of 2016 the Group delivered strong results reporting a 15% increase in operating revenues totaling HRK 1,406 million. A number of factors contributed to this: i) continual investments in raising the competitive edge and the quality of services and products, ii) focus on excellence in sale, marketing and revenue management, iii) the strategic acquisition of the Baška companies, and iv) continual efforts in developing destinations, products and value-added services.
In responding to the increased demand for hospitality products and services, Valamar Riviera was guided by adopted strategic initiatives and the best practices of business excellence. By optimizing distribution, sales channels and marketing segments, the average daily rate increased by 5.2% to HRK 524, while the total number of units sold was 2,152,050 (or 145,775 over prior year results).
Despite i) the increased business volume, ii) the year-round consolidation of the Baška companies, and iii) the inclusion of calculated cost of salaries (remunerations) in the third quarter of 2016 (fourth quarter in the prior year), operating costs were actively managed and remained under control, thus reporting a 13.6% growth. Excluding these calculated costs and costs generated by destination Baška during the first six months of 2016, operating costs reported an almost
twice as low growth rate (8.2%) compared to operating revenues growth.
Increased profitability was the result of a more efficient business activity, excellent market feedback on sales and marketing strategies and increased business volume. EBITDA grew by 18.2% (or: HRK 101.1million) totaling HRK 657.0 million. Adjusted EBITDA14 grew by 16.3% totaling HRK 649.3 million. Operating profit grew by 21.8% and totaled HRK 459.6 million, while the Group's gross profit grew by 44.2% and totaled HRK 497.2 million (HRK 344.9 million in 2015). Following these trends, the EBIT margin was 35.4%, or grew by 720 basis points.
M.I.C.E.15 events in the pre-season period contributed to increased operating efficiency. Firstminute sales created a better basis for the management of sales channels and boosted start bookings in May and June. An optimal control of the group channel boosted the individual channel in May. In June southern destinations reported a decrease in groups (due to an unfavorable holiday spread) which was compensated by the M.I.C.E. segment and supported by growth in other sales channels. Peak season saw an improvement in distribution and price management, sales channels and sales activities. An active optimization of allotment occupancy and prices resulted in a 16% growth in the individual segment which usually carries higher average rates.
period of last year), (ii) extraordinary expenses (in the amount of HRK 7.7 million in the first nine months of 2016, and HRK 5.7 million in the comparative period of the last year), and (iii) termination benefit costs (in the amount of HRK 1.9 million in the first nine months of 2016, and HRK 10.4 million in the comparative period of the last year). Extraordinary operations result and one-off items amounted to HRK 7.7 million in the first nine months of 2016, and HRK -2.4 million in the
comparative period of 2015.
15 M.I.C.E. = Meetings, incentives, conferencing, exhibitions.
During the first nine months, board revenues grew by HRK 127.4 million and totaled HRK 1,127.2 million. Sales revenues grew by HRK 178.1 million and totaled HRK 1,382.5 million. This resulted from a 12.7% increase in board revenues, a 27% increase in outlet revenues and a 45% increase in the revenue of other operating departments (laundry, travel agency, equipment-renting services, etc.). The national sales revenues totaled HRK 101.1 million and represented 6.8% of total revenues (7.4% in 2015). They reported a 9.5% increase over prior comparable period results. International sales revenues totaled HRK 1,281.3 million and represented 86.1% of total revenues (88.7% in 2015). They reported a 15.2% increase over prior comparable period results. Other operating and financial income represented 7.1% of total revenues (3.9% in 2015). The 26.1% increase in other operating revenues resulted from the one-off income received from cancelling provisions related to legal disputes. Financial income reported a HRK 51.1 million growth, which is mainly due to share portfolio sales and exchange rate gains. As a result, total revenues grew by HRK 234.1 million and totaled HRK 1,487.4 million.
| (in HRK) | 1 - 9/2015 | 1 - 9/2016 | 2016/2015 |
|---|---|---|---|
| Operating costs4 | 651,000,016 | 739,558,085 | 13.6% |
| Total operating expenses | 845,691,525 | 946,313,694 | 11.9% |
| Material costs | 332,950,244 | 359,946,104 | 8.1% |
| Staff costs | 238,514,510 | 288,972,289 | 21.2% |
| Depreciation and amortisation | 177,949,360 | 197,103,933 | 10.8% |
| Other costs | 87,024,041 | 89,863,787 | 3.3% |
| Provisions and value adjustments | 711,709 | 271,483 | -61.9% |
| Other operating expenses | 8,541,661 | 10,156,098 | 18.9% |
During the first 9 months of 2016 total operating expenses grew by 11.9%. Several factors contributed to this: increased business volume, the consolidation of the Baška companies (1 January 2016), and the inclusion of calculated cost of salaries (remunerations) in the third quarter of 2016 (fourth quarter in 2015). Excluding these calculated costs and costs generated by destination Baška during the first six months of 2016 for comparability's sake, operating expenses reported a low 6.2% growth. This confirmed the continual positive trends in operating efficiency, management consolidation and restructuring at all levels of Valamar Riviera.
Material costs grew by 8.1% and totaled HRK 359,9 million, representing 38.0% of total operating expenses (39.4% in 2015), which was largely due to increased business volume. Staff costs totaled HRK 289.0 million, representing 30.5% of total operating expenses (28.2% in 2015). The 21.2% increase in staff costs during the first 9 months of 2016 was due to several factors: i) longer operating period of properties, ii) takeover of the Baška companies' staff, iii) inclusion of calculated cost of salaries (remunerations) in the third quarter of 2016 (fourth quarter in 2015), and iv) salary increase (a 2% salary increase in June 2016, a 1.5% salary increase and 0.5% salary increment for years of service in June 2015). Amortization and depreciation totaled HRK 197.1 million (HRK 177.9 million in 2015), and represented 20.8% of total operating expenses (21.0% in 2015). Their 10.8% growth was due to a wider consolidation scope and the previously realized intensive investment cycle. Other operating expenses were HRK 10.2 million, and their 18.9% growth resulted from the operating expenses of previous years. Value adjustments decreased by HRK 440 thousand and totaled HRK 271 thousand. Other costs grew by 3.3% or HRK 2.8 million primarily due to this year's Baška operations.
In the first nine months of 2016 financial income grew by HRK 51.1 million over prior comparable period results and totaled HRK 81.5 million. Other financial income reported the strongest growth, and rose by HRK 36.3 million, which was mostly due to the Group share portfolio sales totaling HRK 35.2 million. Interest income, foreign exchange differences, dividend and similar third-party related income grew by HRK 10.7 million. Exchange rate gains from settled unrealized balance sheet items and loan payments reported the strongest growth of HRK 9.4 million because of a 2% stronger HRK in relation to the EUR during the first nine months of 2016. This contributed to the decrease in balance sheet liabilities denominated in EUR and disclosed in HRK. Despite the free cash funds growth in
the first 9 months of 2016 (compared to the same period in the previous year), a further reduction in market interest rates resulted in their mild HRK 0.3 million decrease. Unrealised income (gains) from financial assets grew by HRK 4.1 million, which was largely due to the valuation of EUR/HRK forward transactions contracted for 2016 as FX hedge.
Financial expenses decreased by HRK 18.9 million compared to the same period a year ago and totaled HRK 43.8 million, representing 4.4% of total expenses (6.9% in 2015). Interest, foreign exchange differences, and similar expenses from third parties decreased by HRK 24.7 million. The valuation of contracted IRSs and forwards in the first nine months of 2016 resulted in an additional HRK 2.8 million expense. Other financial expenses grew by HRK 3.0 million, out of which a HRK 0.9 million refers to the Group share portfolio sales. The most significant change compared to the same period a year ago is related to exchange rate losses from settling unrealized balance sheet items, which fell by HRK 31.6 million due to the said stronger HRK in relation to EUR. A HRK 7.7 million increase in interest expenses during the first nine months of 2016 was related to the increase of debt resulting from loans contracted for financing investments and the consolidation of the Baška companies (from 1 January 2016).
| 31/12/2015 | 30/9/2016 | 2016/2015 | |
|---|---|---|---|
| Average share price per | 23.92 | 34.15 | 42.8% |
| Market capitalization (in HRK) | 2,970,629,728 | 4,241,544,129 | 42.8% |
| EV (in HRK) | 4,053,149,806 | 5,000,748,852 | 23.4% |
| DPS (in HRK) | 0.55 | 0.60 | 9.1% |
| EV / Sales revenues | 3.2x | 3.6x | 13.0% |
| EV / EBITDA | 9.6x | 7.6x | -20.7% |
| EV / Adjusted EBITDA | 9.2x | 7.7x | -16.3% |
| EV / EBIT | 23.6x | 10.9x | -53.9% |
| EV / Adjusted EBIT | 21.7x | 11.1x | -49.0% |
deferred income
On 30 September 2016 the total value of the Group's assets was 13.8% higher compared to results on 31 December 2015. The total share capital and reserves grew by HRK 395.6 million, totaling HRK 2,297.3 million. This was mainly due to a HRK 393.7 million increase in generated profit. The total long-term liabilities were 5.6% higher and on 30 September 2016 total HRK 1,406.9 million due to arranged loans for financing investments. The total short-term liabilities were 2.7% higher than on 31 December 2015 and totaled HRK 235.7 million. This resulted from i) customary higher liabilities arising from advances form customers (increased by HRK 52.1 million), ii) trade payables (increased by HRK 28.3 million), iii) liabilities to employees (increased by HRK 11.8 million, due to wider consolidation scope and larger number of employees compared to 31 December 2015), iv) taxes, contributions and similar liabilities (increased by HRK 20.9 million), and v) current repayment of long-term debt (decrease of HRK 105.9 million).
Cash and cash equivalents on 30 September 2016 were 105% higher compared to 2015 year-end, totaling HRK 653.4 million. This strong cash potential from business activities and external borrowings is able to ensure a smooth continuation of future investments and potential acquisitions.
| HOTELS AND RESORTS | Total | Premium | Upscale | Midscale | Economy | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 - 9/2015 | 1 - 9/2016 | 2016/ 2015 |
1 - 9/2015 | 1 - 9/2016 | 2016/ 2015 |
1 - 9/2015 | 1 - 9/2016 | 2016/ 2015 |
1 - 9/2015 | 1 - 9/2016 | 2016/ 2015 |
1 - 9/2015 | 1 - 9/2016 | 2016/ 2015 |
|
| Number of accommodation units | 7,856 | 7,927 | 0.9% | 1,037 | 1,037 | 0.0% | 1,422 | 1,422 | 0.0% | 3,048 | 3,112 | 2.1% | 2,349 | 2,356 | 0.3% |
| Accommodation units sold | 1,055,275 | 1,135,259 | 7.6% | 149,854 | 177,036 | 18.1% | 201,714 | 206,416 | 2.3% | 408,358 | 451,331 | 10.5% | 295,349 | 300,476 | 1.7% |
| Overnights | 2,329,711 | 2,462,250 | 5.7% | 306,413 | 344,390 | 12.4% | 448,153 | 465,161 | 3.8% | 892,840 | 974,975 | 9.2% | 682,305 | 677,724 | -0.7% |
| ADR (in HRK)12 | 743 | 770 | 3.5% | 1,136 | 1,180 | 3.9% | 976 | 1,031 | 5.6% | 711 | 713 | 0.2% | 430 | 434 | 1.0% |
| Board revenues (in HRK) | 784,507,397 | 873,876,123 | 11.4% | 170,198,500 | 208,976,675 | 22.8% | 196,905,278 | 212,715,413 | 8.0% | 290,516,267 | 321,797,842 | 10.8% | 126,887,351 | 130,386,193 | 2.8% |
Hotels and resorts reported a strong board revenue growth of HRK 89.4 million with the Premium and Midscale segments being major drivers for the HRK 873.9 million board revenues total. These results were largely due to a sales mix optimization, investments in quality improvement of hospitality products and services, and the successful realization of a number of business and entertainment events in Dubrovnik and Poreč. It should be noted that this growth was partly influenced by the results of the Baška destination. Excluding them, the total board revenues for hotels and resorts reported a 10% growth.
The Premium segment reported the strongest growth in board revenues of 22.8% and totaled HRK 209.0 million, mainly due to an increase in accommodation units sold (i.e. 27,182 more, or 177,036 total). The Valamar Isabella Island Resort 4* & 5* was the main revenue driver – it reported a board revenue growth of over HRK 18 million, out of which HRK 12 million were realized through direct sales due to an active management of marketing segments. This, along with a longer operating period and M.I.C.E events contributed the Valamar Isabella Island Resort 4* & 5 high growth rates. The Daimler AG-Mercedes-Benz organized the M.I.C.E. event "Global Training Experience" at the Valamar Dubrovnik President 5* and the Valamar Lacroma 4* in the Februarymid-April period and contributed to the prolongation of the operating period and high occupancy rates. The high-season growth of the Dubrovnik Premium segment was mainly due to the excellent positioning of the Valamar Dubrovnik President 5* in the individual channel. The adequate distribution of
17 According to the classification under the USALI international standard for reporting in hotel industry (Uniform System of Accounts for the Lodging Industry). Business operations of Baška properties are included for the period marketing segments ensured the significant growth of the Valamar Lacroma 4*, mainly through allotment and M.I.C.E. placements.
The Upscale segment reported a HRK 15.8 million board revenue growth. The increased average daily rate and number of accommodation units sold (5.6% and 2.3% respectively) contributed to board revenues amounting to HRK 212.7 million. The Valamar Club Tamaris 4* owed its strong results to a successful firstminute allotment distribution and a stronger individual sales channel which was responsible for over two thirds of the total growth. The increase in the individual segment and occupancy contributed to a significant growth of Hotel & Casa Sanfior 4*. The management of the marketing segments and prices received a good marketing feedback and boosted the individual segment of the Valamar Zagreb 4* which in turn performed a high growth. Similarly, The Valamar Riviera 4* hotel owed its robust performance and high occupancy primarily to an increase in capacity, since 10 new accommodation units have been added.
The Midscale segment of hotels and resorts reported a growth of HRK 31.3 million and contributed to a large extent to the total board revenue growth. The HRK 321.8 million board revenues were partially influenced by the business done in destination Baška during the first half-year of 2016. Excluding Baška, the Midscale board revenues growth exceeded HRK 14 million. The main revenue drivers were the Valamar Diamant 4* and the Valamar Club Dubrovnik 3*. The prolonged
January – September 2016, while in the comparable period of 2015 are included in the period July - September 2015.
Destination Pula - Puntižela business is included in destination Poreč. A detailed
operating period during which the hotels remained open, the new multifunctional hall which was an important feature for the M.I.C.E. channel as well as an improved realization of the group channel during the season resulted in a significant increase in the business volume and strong growth of the Valamar Diamant 4* board revenue. On the other hand, the Valamar Club Dubrovnik 3* grew in all its marketing segments due to an adequate placement of allotments and group. The Valamar Crystal 4* grew further mainly because of a strategic shift towards long-term charter partners which ensured additional occupancy through flights to Istria during the shoulder season. The competitive price policy in defined periods which was focused mainly on occupancy resulted in increased board revenues in the Valamar Rubin 3*. The Allegro and the Miramar 3* in destination Rabac reported strong growth mainly due to a significant increase of the individual channel and adequate group and allotment placement in the pre-season.
The Economy segment of hotels and resorts reported HRK 130.4 million in board revenues, representing a 2.8% increase. The Pical 3* board revenue increase was the result of a stronger individual sales channel, and an active price management, both contributing to a higher average daily rate. The Tirena 3* results grew due to the performance of the individual sales channel and optimal allotment placement. An increased group volume and pre-season events led to Lanterna's 2* increased board revenue. Fewer operating days reduced the Girandella Tourist Village 2* occupancy, although board revenues remained the same due to increased average daily rates.
14
comparison of the new portfolio segmentation is on page 17.
| CAMPING RESORTS | Total | Premium | Upscale | Midscale | Economy | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 - 9/2015 | 1 - 9/2016 | 2016/ 2015 |
1 - 9/2015 | 1 - 9/2016 | 2016/ 2015 |
1 - 9/2015 | 1 - 9/2016 | 2016/ 2015 |
1 - 9/2015 | 1 - 9/2016 | 2016/ 2015 |
1 - 9/2015 | 1 - 9/2016 | 2016/ 2015 |
|
| Number of accommodation units | 9,928 | 10,145 | 2.2% | 475 | 511 | 7.6% | 4,449 | 4,437 | -0.3% | 3,378 | 3,387 | 0.3% | 1,626 | 1,810 | 11.3% |
| Accommodation units sold | 951,000 | 1,016,791 | 6.9% | 64,619 | 67,535 | 4.5% | 442,985 | 465,767 | 5.1% | 305,983 | 331,484 | 8.3% | 137,413 | 152,005 | 10.6% |
| Overnights | 2,238,215 | 2,464,024 | 10.1% | 185,968 | 197,294 | 6.1% | 1,068,572 | 1,194,363 | 11.8% | 664,666 | 717,211 | 7.9% | 319,009 | 355,156 | 11.3% |
| ADR (in HRK)12 | 226 | 249 | 10.0% | 289 | 362 | 24.9% | 245 | 280 | 14.4% | 203 | 209 | 2.7% | 190 | 193 | 1.9% |
| Board revenues (in HRK) | 215,258,604 | 253,280,981 | 17.7% | 18,700,138 | 24,419,347 | 30.6% | 108,366,983 | 130,335,205 | 20.3% | 62,109,356 | 69,116,362 | 11.3% | 26,082,126 | 29,410,067 | 12.8% |
Camping resorts reported HRK 253.3 million in total board revenue. The HRK 38.0 million increase was due to the strong market feedback that the newly invested properties received and to a lesser extent, to the results of the Baška camping resort operations in the first half of 2016. Excluding the Baška operations results, the total camping resort board revenues grew by high 15%.
The Premium segment of camping resorts includes the Krk 5* campsite, which reported a strong 30.6% board revenue growth totaling HRK 24.4 million. This growth resulted from a HRK 73 increase in the average daily rate due to this years' investment in new mobile homes, improved quality and service as well as intensive promotional activities.
A 14.4% increase of the average daily rate in the Upscale segment of camping resorts resulted in a HRK 22.0 million increase in board revenues. The campsite Lanterna 4* contributed mostly to the reported board revenues totaling HRK 130.3 million. The leading Istrian camping resort owed its 24% growth in board revenues to investments in new mobile homes, quality and service improvement and promotional activities. The two campsites, Marina 4* and Ježevac 4*, owed their increased board revenues to a higher daily average rate. This years' Bunculuka 4* business performance contributed to stronger Upscale results totaling HRK 3.2 million in additional board revenues.
The camping resort Midscale segment reported a HRK 69.1 million board revenues. The Zablaće 3* campsite yearround consolidation contibutes to 11.3% increase in board revenues. This is because early Easter holidays do not benefit camping operations and cause fewer operating days and lower board revenues.
The Economy segment reported HRK 29.4 million in board revenues. The HRK 3.3 million increase is mainly attributed to investments in the Brioni 2* campsite and the new Tunarica 2* campsite operations.
| DESTINATION | Poreč | Rabac | Krk | Dubrovnik | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 - 9/2015 | 1 - 9/2016 | 2016/ 2015 |
1 - 9/2015 | 1 - 9/2016 | 2016/ 2015 |
1 - 9/2015 | 1 - 9/2016 | 2016/ 2015 |
1 - 9/2015 | 1 - 9/2016 | 2016/ 2015 |
|
| Number of accommodation units | 10,592 | 10,632 | 0.4% | 1,913 | 2,065 | 7.9% | 3,318 | 3,414 | 2.9% | 1,961 | 1,961 | 0.0% |
| Accommodation units sold | 1,153,379 | 1,192,839 | 3.4% | 247,831 | 252,544 | 1.9% | 344,869 | 423,473 | 22.8% | 260,196 | 283,194 | 8.8% |
| Overnights | 2,648,509 | 2,813,257 | 6.2% | 571,939 | 590,167 | 3.2% | 844,211 | 991,139 | 17.4% | 503,267 | 531,711 | 5.7% |
| ADR (in HRK)12 | 434 | 469 | 8.1% | 560 | 579 | 3.3% | 379 | 387 | 2.0% | 884 | 912 | 3.1% |
| Board revenues (in HRK) | 500,129,623 | 558,985,247 | 11.8% | 138,781,641 | 146,117,945 | 5.3% | 130,742,438 | 163,772,689 | 25.3% | 230,112,299 | 258,281,223 | 12.2% |
Destination Poreč reported HRK 559.0 million in board revenues. The growth of average daily rate by 8.1% and number of accommodation units sold of 3.4% resulted in a HRK 58.9 million increase in board revenues. The most significant contribution to the board revenue growth in this destination was attributed to the excellent performance of the Valamar Isabella Island Resort 4* & 5*, the Lanterna 4* campsite and the Valamar Diamant 4* hotel.
Destination Rabac owed its HRK 7.3 million increase in board revenue to a HRK 19 increase in the average daily rate and more accommodation units sold (+4,713). The reported HRK 146.1 million in board revenues was mostly attributed to the strong performance of the Hotel & Casa Valamar Sanfior 4*, the Allegro hotel 3* and the Miramar hotel 3*, as well as the Marina campsite 4*.
Destination Krk reported board revenues amounting to HRK 163.8 million, mainly due to the destination Baška 2016 yearlong consolidation. Excluding the performance of hotels, resorts and camping resorts in destination Baška, board revenues rose by 10.8%, while the rest of the growth is mainly due to the strong performance of the Krk camping resort 5*.
Destination Dubrovnik reported a 3.1% growth in the average daily rate and an 8.8% rise in accommodation units sold. This resulted in a HRK 28.2 million increase in board revenues, totaling HRK 258.3 million, mostly due to the excellent performance of two hotels: the Valamar Dubrovnik President 5* and the Valamar Lacroma 4* .
Over the years Valamar Riviera has consolidated its portfolio in order to clearly differentiate, develop and reposition its tourism products. A precise definition of market segments, innovative development of service concepts, brand management, profitability increase and return-on- investment optimization demanded a revised segmentation of the portfolio of hospitality properties to provide for an improved portfolio management.
| Hotels and Resorts Overview | Categorization | Segment | Destination | ||
|---|---|---|---|---|---|
| 2015 | 2016 | 2015 | 2016 | ||
| Valamar Dubrovnik President Hotel | * | * | Premium | Premium | Dubrovnik |
| Valamar Isabella Island Resort | ****+ | * / ** | Premium | Premium | Poreč |
| Valamar Lacroma Hotel | ****+ | ****+ | Premium | Premium | Dubrovnik |
| Valamar Club Tamaris | **** | **** | Upscale | Upscale | Poreč |
| Valamar Riviera Hotel & Residence | **** | **** | Upscale | Upscale | Poreč |
| Valamar Zagreb Hotel | **** | **** | Upscale | Upscale | Poreč |
| Hotel & Casa Valamar Sanifor | **** | **** | Upscale | Upscale | Rabac |
| Valamar Argosy Hotel | **** | **** | Upscale | Upscale | Dubrovnik |
| Valamar Diamant Hotel & Residence | **** | **** | Midscale | Midscale | Poreč |
| Valamar Crystal Hotel | **** | **** | Midscale | Midscale | Poreč |
| Valamar Pinia Hotel & Residence | *** | *** | Midscale | Midscale | Poreč |
| Valamar Rubin Hotel | *** | *** | Midscale | Midscale | Poreč |
| Valamar Bellevue Hotel & Residence Albona | **** | **** | Midscale | Midscale | Rabac |
| Allegro Hotel | *** | *** | Midscale | Midscale | Rabac |
| Miramar Hotel | *** | *** | Midscale | Midscale | Rabac |
| Hotel Corinthia18 | *** | *** | Midscale | Midscale | Island of Krk |
| Zvonimir Hotel, Atrium & Villa Adria18 | * / ** | * / ** | Midscale | Midscale | Island of Krk |
| Valamar Koralj Romantic Hotel | *** | *** | Midscale | Midscale | Island of Krk |
| Valamar Club Dubrovnik | *** | *** | Midscale | Midscale | Dubrovnik |
| Naturist Resort Solaris | *** | *** | Economy | Economy | Poreč |
| Pical Hotel | *** | *** | Economy | Economy | Poreč |
| Tirena Hotel | *** | *** | Economy | Economy | Dubrovnik |
| Girandella Tourist Village | ** | ** | Economy | Economy | Rabac |
| Lanterna Apartments | ** | ** | Economy | Economy | Poreč |
| Marina Hotel & Mediteran Residence | ** | ** | Economy | Economy | Rabac |
| Camping Resorts Overview | Categorization | Segment | Destination | ||
|---|---|---|---|---|---|
| 2015 | 2016 | 2015 | 2016 | ||
| Camping Krk | * | * | Premium | Premium | Island of Krk |
| Camping Ježevac | **** | **** | Upscale | Upscale | Island of Krk |
| Camping Lanterna | **** | **** | Upscale | Upscale | Poreč |
| Camping Marina | **** | **** | Upscale | Upscale | Rabac |
| Camping Camping Bunculuka18 | **** | **** | Upscale | Upscale | Island of Krk |
| Camping Orsera | *** | *** | Midscale | Midscale | Poreč |
| Camping Resort Solaris | *** | *** | Midscale | Midscale | Poreč |
| Camping Zablaće18 | *** | *** | Midscale | Midscale | Island of Krk |
| Camping Škrila | *** | *** | Midscale | Midscale | Island of Krk |
| Camping Solitudo | *** | *** | Midscale | Midscale | Dubrovnik |
| Naturist Camping Istra | *** | ** | Economy | Economy | Poreč |
| Camping Brioni | ** | ** | Economy | Economy | Pula - Puntižela |
| Camping Tunarica | ** | ** | Economy | Economy | Rabac |
18 Business operations of Baška properties are included for the period January – September 2016, while in the comparable period of 2015 are included in the period July - September 2015.
In the business year 2016, we expect to achieve consolidated operating revenues ranging from HRK 1,460 million to HRK 1,475 million (in 2015: HRK 1,294 million), representing a growth of 12.8% to 14.0% (HRK 166 million to HRK 181 million).
In the business year 2016, expected EBITDA will range from HRK 500 million to HRK 515 million (in 2015: HRK 423 million) representing an increase of 18.1% to 21.6% (HRK 77 million to HRK 92 million) thus realizing an expected EBITDA margin between 33.9% and 35.2% compared to 32.7 % in 2015.
Our outlook is based on (i) the results achieved in the first nine months of 2016; (ii) the operating revenues generated by 20 October 2016; (iii) booking in the books (representing 99.2% of the realized and estimated 2016 accomodation revenues recorded in the books); (iv) forecasts for fourthquarter results; and (v) the absence of significant adverse changes of the risks to which the Company and the Group are exposed.
Outlook statements are based on currently available information, current assumptions, forward-looking expectations and projections. This outlook is not a guarantee of future results and is subject to future events, risks, and uncertainties, many of which are beyond the control of, or currently unknown to Valamar Riviera, as well as potentially incorrect assumptions that could cause the actual results to materially differ from the said expectations and forecasts. Risks and uncertainties include, but are not limited to the ones described in the chapter " Risks of the Company and the Group". Materially significant deviations from the 2016 outlook may arise from changes in circumstances, assumptions not being realized, as well as other risks, uncertainties, and factors, including:
Changes in accounting policies and findings of financial report audits, as well as findings of tax and other business audits;
Outcomes and costs of judicial proceedings to which Valamar Riviera is a party;
Should materially significant changes to the stated outlook for the business year 2016 occur, Valamar Riviera shall immediately inform the public thereof, in compliance with Article 459 of the Capital Market Act. Given outlook statements are not an outright recommendation to buy, hold or sell Valamar Riviera's shares.
It should be noted that the data provided in the current year's financial statements are not fully comparable to prior comparable period data because of the said merger process. The items in the prior comparable period until the time of the merger, that is i) until 27 February 2015 do not include the data for the merged company Valamar hoteli i ljetovališta d.o.o., ii) until 31 March 2016 do not include the data for the merged company Hoteli Baška d.d., and iii) until 30 June 2016 do not include data for the merged company Bastion upravljanje d.o.o. All significant changes in the Company's financial statements should be viewed in the context of the said mergers.
In the period from 1 January 2016 to 30 September 2015, total revenues increased by HRK 273,1 million, totaling HRK 1,467.1 million. Sales revenues totaled HRK 1,368.3 million, representing 93% of total revenues (94% in 2015). They were HRK 246.7 million higher compared to the same period last year. National sales revenues grew by 19.6% compared to the same period last year, totaling HRK 99.5 million and representing 6.8% of total revenues (7% in 2015). International sales revenue grew by 22.2% compared to the same period last year, totaling HRK 1,268.8 million, representing 86.5% of total revenues (87% in 2015). Other operating and financial income comprised 7% of the total revenues (6% in 2015). Other operating revenues grew by 21.7%, totaling HRK 20.1 million and represents 1% of the total revenues (1% in 2015).
Material costs grew by HRK 34.3 million, totaling HRK 377.2 million and represented 40% of operating expenses (42% in 2015). Staff costs amounted to HRK 283.6 million, representing 30% of total operating expenses (28% in 2015). Compared to the same period last year, they grew by HRK 58.4 million. This increase was attributed to increased business volume, the Baška staff takeover, earlier inclusion of calculated cost of salaries (remunerations) in the third quarter of 2016 (fourth quarter in 2015) and to a lesser extent, employees' salary increase.
Compared to the same period last year, financial income grew by HRK 22.8 million and totaled HRK 78.7 million. Other financial income reported the strongest growth, with a HRK 35.9 million increase over prior comparable period results. This was mainly attributed to the Company share portfolio sales totaling HRK 34.8 million. Interest income, foreign exchange differences, dividends and similar third-party related income grew by HRK 8.9 million. As a result of a 2% stronger HRK in relation to the EUR during the first nine months of 2016, exchange rate gains in settled unrealized balance sheet items and loan payments reported the strongest growth of HRK 8.5 million. This contributed to the decrease in balance sheet items denominated in EUR and disclosed in HRK. Despite the free cash funds growth in the first 9 months of 2016 compared to the same period last year, a further reduction in market interest rates resulted in a mild HRK 0.2 million decrease in revenue from time deposits, a vista accounts and placements. In 2016, dividend revenues from the related company Valamar hoteli i ljetovališta d.o.o. (merged to Valamar Riviera d.d. on 27 February 2015) totaling HRK 24.0 million were not paid out. Unrealised revenues (gains) from financial assets grew by HRK 4.1 million, resulting from the valuation of EUR/HRK forward transactions contracted for 2016 as FX hedge.
Financial expenses decreased by HRK 18.9 million compared to the same period a year ago and totaled HRK 39.7 million, representing 4% of total expenses (7% in 2015). Interest, foreign exchange differences, and similar expenses from third parties decreased by HRK 23.8 million. The valuation
of contracted IRSs and forwards in the first nine months of 2016 resulted in an additional HRK 2.8 million expense. Other financial expenses grew by HRK 2.1 million. The most significant change compared to the same period a year ago is related to exchange rates losses from settling unrealized balance sheet items, which fell by HRK 30.6 million due to the said stronger HRK in relation to the EUR. A HRK 7.7 million increase in interest expenses during the first nine months of 2016 is related to the increase of debt resulting from loans contracted for financing the investments and the consolidation of the Baška companies and their debt carryover.
The increased business volume and more efficient business activities produced a higher business profitability. In the reviewed period profit before tax rose by HRK 168.2 million and totaled HRK 490.3 million. Operating profit was increased by HRK 126.6 million, totaling HRK 451.2 million. The Company gross margin amounted to 35.3% (28.3% in 2015).
The total Company assets on 30 September 2016 amounted to HRK 4,231 million, or HRK 675.8 million more in relation to the prior comparable period.
In 2016, over HRK 260 million19 of investments have been focused on improving the quality of Valamar Riviera's portfolio of hotels, apartments, and campsites. Over 50% of the total 2016 investments has been earmarked for developing accommodation, services and amenities in campsites operating under the Camping Adriatic by Valamar brand.
After completing an investment cycle of almost HRK 34 million, the Krk campsite became the first five-star camping resort in Croatia. This unique, eco-friendly, family camping resort is one of the three Croatian member campsites of the prestigious association "Leading Campings of Europe". It includes a number of attractive features such as heated swimming pool, wellness oasis, and promenade with entertainment amenities, children's swimming pool, children's water playground and fully refurbished sanitary units. The numerous amenities include Maro Mini and Midi clubs for younger children, as well as Teens Club and Hobby Club for older children. The accommodation capacity has been increased by the "Bella Vista Premium Village", a complex of 63 designer mobile homes with sea view. Special attention was devoted to energy efficiency and sustainable development: the campsite has a unique system for wastewater purification and landscape irrigation by utilizing purified wastewater. Over 300 trees have been planted and the beach boasts a Blue Flag.
HRK 87 million have been invested into upscaling the Lanterna campsite (from 3* to 4*). The Lanterna is the leading Istrian campsite and a member of the association "Leading Campings of Europe". New accommodation units have been introduced as part of the Istrian Village project. Besides, innovative accommodation for Glamping (i.e. luxury camping) fans has also been added, as well as two brand-new theme accommodation zones with a total number of 119 new mobile homes. Numerous plots have been renovated, the landscape has been redesigned and the reception area refurbished. There
19 A portion already recorded in 2015.
is also a number of new facilities such as the Adria sand beach featuring the new "Beach Bar" , the new "Cafe Belvedere" and many more. The campsite's guests can enjoy the new water park featuring four swimming pools, numerous slides and other children attractions on a total water surface area of 1,350 m 2 . The main swimming pool near the beach and two sanitary units have also been refurbished.
Investments into quality improvement have also been carried out in other campsites on the island of Krk, in Istria and Dubrovnik – the investment focus was improving accommodation, beach amenities and outlets. The campsite segment shows considerable potential for developing innovative camping resorts, i.e. resorts offering higher value-added accommodation and services targeting high-end guests. However, the development of such projects is hindered due to unresolved legal issues regarding tourism land (land plots used for tourism purposes) Thus, Valamar Riviera's investment scope is still restricted to partial investments in campsite facilities and amenities. Were these issues resolved, a repositioning potential would open up not only in Valamar Riviera's portfolio but also elsewhere in Croatia, thus improving the campsites' position in relation to the top European competitors.
Last year's successful Valamar isabella Island Resort project has been continued with HRK 12 million invested into turning part of the products and services into premium segments (53 accomodation units in total: the Miramare annex, the Castle and 7 villas). This year Valamar Riviera has refurbished a number of restaurants: the Delfin, the Orsera and the former "Slavija" restaurant which has been turned into three new facilities – the "La Pentola II" restaurant, the "Craft" alehouse, and "The Beat" beach club. There has also been a number of successful projects aiming at creating new and improving present amenities, thus enhancing the quality and experience of a destination. Among the numerous projects carried out is the Valamar Diamant 4* hotel sports hall which has been turned into a multifunctional facility for sports and other kinds of events. Further investments in improving beaches and staff accommodation have also been carried out, along with IT and business digitalization projects, improvements in technological processes and energy savings in laundry operations, as well as other projects related to energy efficiency.
With over HRK 750 million planned for investment in 2017, Valamar Riviera continues with the largest investment cycle focused on the Company's hospitality portfolio. Namely, over 50% of the total investments has been earmarked for improving the quality of the tourism products and services in destination Rabac. A brand new Family Life Bellevue Resort 4* (the first TUI Family Life hotel in Croatia) and a fully renovated Valamar Girandella Resort 4* will welcome next year's guests. These investments will reposition destination Rabac as a leading upscale vacation destination and create nearly 400 job openings. The construction of these two luxury resorts and the carefully planned surrounding infrastructure is planned to be completed before the start of season 2017, and the construction work is proceeding as planned. This investment project will provide for a significant increase of total swimming pool surface area (from the present 400 m 2 to 3,000 m 2 ). This new feature, along with new the facilities, amenities and improved service quality, will help reduce the number of beach occupants, as the beaches will remain open to the general public. The overall surrounding infrastructure will be carefully planned and constructed. The beaches will feature new showers, changing rooms; improved access to the sea, the landscape will be carefully redesigned and new walking paths and bike paths constructed. A new, 150-meter long walking path will connect the two parts of the promenade near the present Girandella restaurant, which will be a valuable improvement for all the visitors and residents. A great feature for all outdoor fans will be the addition of new bike paths next to the future Bike-trim park, along with improved sports amenities and children's playgrounds. A number of new and attractive outlets is also planned, including the new Beach club, Green & Grill, Steak House and many more.
Family Life Bellevue Resort 4* (preliminary visualization), Rabac The Bellevue and the Albona hotels will undergo a total reconstruction and become the 372-room (1,365 beds) Family Life Bellevue Resort 4*, which will include the Bellevue Hotel, Bellevue Residence, Villa Ava, Albona-Annex A and Albona-Annex B. New investments in swimming pools, restaurants, beaches, entertainment and other amenities in this resort will greatly improve the service quality according to TUI standards. This world's leading tour operator and Valamar Riviera's strategic partner plans to bring about 80,000 guests, thus generating over 400,000 overnights, primarily by creating new air travel markets in Scandinavia and Great Britain.
The project Valamar Girandella Resort 4* includes a conceptbased reconstruction of three pavilions, the central building with the restaurant and three villas used as accommodation facilities. One pavilion will be turned into an "adults only" zone with its own pool, pool bar and reception; the other pavilion will undergo a family-concept reconstruction, while the villas will be upgraded into premium accommodation. The third pavilion will undergo a total reconstruction and become a family hotel with swimming pools, following an international family branding concept and the renovation is planned for 2018. After the full reconstruction, the Valamar Girandella Resort will have 399 accommodation units (1,391 beds). Next year, guests will be able to enjoy the impressive 12,000 m 2 beach surface area, divided into several theme concepts: the Girandella Resort beach, the Family beach and the Adults only beach. A large number of family entertainment amenities will be available to all guests, including an entertainment hall, beach club, steak house and the new Maro kids' club. The present destination landscape will be greatly improved by the construction of walking paths, bike paths, beaches and parking lots. The strategic partnership with DER Touristik Köln GmbH ensures further occupancy of the new Valamar Girandella Resort 4*. Namely, Valamar Riviera has concluded an allotment contract for a three-year period (seasons 2017- 2019) with occupancy guarantee.
Valamar Girandella Resort 4* (preliminary visualization), Rabac Besides investing in brick-and-mortar properties such as hotels and resorts, almost a quarter of the total investments will be focused on campsites. In order to improve the quality and experience of the Lanterna campsite, the reception area together with the shops and hospitality outlets will be renovated, while the campsite will feature 61 new highquality mobile homes and new amenities for children. The Krk campsite will also undergo renovation and will welcome its guests with a brand-new SPA zone, refurbished sanitary units and accompanying amenities. The Ježevac campsite on the island of Krk will receive a new mobile home zone (69 new mobile homes). Thus, investments will focus on building new, high-quality accommodation units and improving the present promenades, beaches, and hospitality outlets. In order to improve the quality of other campsites on the island of Krk, in Istria, and in Dubrovnik a range of investments will be focused on improving accommodation, beach amenities, and hospitality outlets.
Moreover, a range of other projects is in the pipeline aiming at creating new and improve existing features and thus considerably improve the experience quality in all destinations (beaches, IT and business digitalization projects, technological processes and other projects related to energy efficiency). The Borik beach in Poreč will be completely rebuilt and will include a range of water attractions, hospitality outlets, as well as numerous sports and entertainment facilities and amenities for guests of all age groups. Valamar Riviera will also invest considerable funds to improve the quality and quantity of staff accommodation units for internal employees. Besides, in line with the Valamar Riviera's constant growth and strategic goals, a range of investments will be focused on improving other business segments. For instance, the expansion of the corporate building in Poreč and the construction of a corporate building in Dubrovnik is also planned, in order to meet the needs of additional workspace.
Valamar Girandella Resort 4* (preliminary visualization), Rabac As indicated in our strategic goals, by continuously raising the quality of portfolio facilities, services, and contents, we are creating the basis for generating added value both for our guests and for all Valamar Riviera's stakeholders. However, further investment potential is hindered by the still unresolved issue of tourism land, VAT and the rate of total contributions to salaries which are both one of the highest on the Mediterranean. Unfortunately, the tourism is still not sufficiently recognised as an opportunity for the Croatian economy. Apart from the existing financing programmes provided by the Croatian Bank for Reconstruction and Development and tax incentives according to the Act on Investment Incentives, there are no other measures that would significantly accelerate growth and development and thus provide for a level playing field for the Croatian tourism and the tourism in other Mediterranean countries.
Risk can be defined as a potential event, which can have a negative impact on the defined corporate strategy and prevent the fulfilment of corporate objectives. In order to mitigate such an impact, Valamar Riviera has developed a proactive risk management policy for all the aspects of its business.
There are five key steps in a risk management process:
Over 95% of Valamar Riviera's guests come from other countries and they are very careful when choosing their vacation destination in the competitive Mediterranean environment. Stable country macroeconomic indicators are an important factor for this decision-making, especially those relating to exchange rates and the price of goods and services because they directly affect the guests' purchasing power. However small, the domestic guest share is also important; it is a segment directly influenced by various other macroeconomic indicators: employment/ unemployment rate, GNP rise/fall, industrial production and others. They all have a direct impact not only on the purchasing power of
Croatian residents but also determine whether they will choose to spend their vacation on the Adriatic.
Changes in tax laws and other regulations pose a very serious threat and represent a demanding segment in risk management because in this particular situation the possibilities for the Company and Group are limited. In previous years, there has been a number of important changes in tax regulations, which have adversely affected the Company and Group profitability:
Such frequent changes in laws regulating taxes and non-tax levies often take place only after the business policy and budget for the next financial year have been approved and commercial terms and conditions with partners agreed. All this jeopardizes the Company and Group financial position and future investment plans as well as credibility towards shareholders. The Company and Group are also threatened by changes in regulations governing concession fees for maritime domain and tourism land use, the latter still presenting unresolved legal issues. Given the nature of the Company and Group's business, the right to use parts of the maritime domain as well as land for tourism purposes is of vital importance for future growth, especially for campsiterelated operations.
In their day-to-day business activities, the Company and Group face a number of financial threats, especially:
The Company and Group have a proactive approach in mitigating interest rate and foreign exchange risks, by employing available market instruments. Internal risk management goals and policies aim at protecting foreign currency inflows during seasonal activity and partial interest hedging of the principal loan amount.
The Company and group conduct their business operations across national borders and are therefore exposed to foreign exchange risks arising from various currency exposures primarily with respect to the Euro and (to a very small extent) the Swiss franc. Foreign exchange rate risk arises from future commercial transactions and recognized assets and liabilities. Most of our sales revenue generated abroad is denominated in Euro while long-term debt is denominated in Euro and (a very small part) in Swiss franc. According to this, the exchange rate fluctuations between the Croatian Kuna and the Euro can influence future business operations and cash flow. The Company and Group use of derivative instruments is guided by operating assessments and expected market trends. Since most of the inflow is denominated in Euros, and so is the majority of liabilities, for the most part, the Company and Group are naturally hedged from exchange rate risks.
Variable rate loans expose the Company and Group to cash flow interest rate risk. Periodically, the Company and Group resort to derivative instruments in order to actively hedge cash flow and fair value interest rate by applying interest rate swaps. The economic effect of such swaps is the conversion of variable interest rate loans into fixed interest rate loans for a pre-committed hedged part of the loan principal. The Company and Group have interest-bearing assets (cash assets and deposits) so their revenue and cash flow depend on changes in market interest rates. This becomes evident especially during the season when the Company and Group have significant cash surpluses at their disposal.
Credit risk arises from cash assets, time deposits and receivables. According to the Company and Group sales policy, business transactions are conducted only with customers with suitable credit history, i.e. by agreeing advances, bank securities and (for individual customers) payments made through major credit card companies. The Company and Group continuously strive to monitor their exposure towards other parties and their credit rating as well as obtain security instruments (bills of exchange, promissory notes) in order to reduce bad debt risks with regard to services provided.
The Company and Group hold equity and debt securities and are exposed to equity price risk due to security price volatility. Valamar Riviera is not an active participant in the market trade in terms of investing in equity and debt securities, so the price risk for securities held is minor.
The Company and Group have a sound liquidity risk management: sufficient cash assets are made available at any given moment in order to meet their liabilities through monthly, annual and long-term cash flow forecasts. The Company and Group aims at maintaining flexible financing by making the arranged lines of credit always available. After meeting the needs of working capital management, the surplus cash funds are then deposited in the form of
interest-bearing current accounts, time deposits, money market deposit accounts and marketable securities. Only instruments with suitable maturities and sufficient liquidity are selected, according to the forecast needs for liquid funds.
The market value of shares is the riskiest asset class due to its volatility, which is correspondingly influenced by the volatile nature of the whole capital market, macroeconomic trends on markets where the Company and Group operate and discrepancies between the expectations of financial analysts and the actual results. Furthermore, other contributing factors are also changes in the dividend policy, various activities in the segment of consolidations, mergers, acquisitions and forming of strategic partnership, the instability of the business model of the Company and Group as well as the fluctuations in the financial results for the Company and Group. In case any negative implications happen to be associated with these factors there is a considerable risk of market value drop which will in turn prevent investors from selling their shares at a fair market price.
The Company and Group are constantly exposed to risks threatening its competitiveness and future stability. In the previous period, the company and Group's business decisions have improved their results and operating efficiency in the demanding Mediterranean market. These positive trends are expected to continue in the future through a prudent long-term strategic management.
In previous years the Croatian economy has been afflicted by the consequences of a global financial crisis and economic standstill. In this period, the tourism and hospitality industry has been among the rare growing industries in Croatia. After joining the European Union, the Croatian market became part of a large European market, while safety risks decreased after joining the NATO. The Croatian Tourism Development strategy until 2020 (a government document published in the Official Gazette no. 55/13) defines the kind of tourism Croatia wants and needs to develop using the country's comparative advantages and expertise in order to improve the competitiveness of Croatian tourism. Maintaining the current tourism growth rates in the following years is of vital importance. It can be achieved by strategically developing tourism products and investing in the creation of additional values, which will help distinguish Croatian tourism from its competitors by emphasizing its uniqueness, attractiveness and quality.
Despite improved security and political conditions, which have encouraged to a certain extent investments into tourism and hospitality, there are challenges that Croatian tourism has to face, such as:
security issues related to globally escalating terrorism threats;
security and political instability in the immediate environment of the neighboring countries;
Environmental risks can also have an adverse effect on the Company and Group's business results, primarily in terms of customer satisfaction with the whole experience while staying at one of Valamar's properties and this can affect the number of arrivals. The possible risks can include: sea pollution (caused by oil or chemical spillage), but also less intensive water quality reduction and coast pollution due to inadequate waste water treatment and poor sewage systems along the Adriatic coast. Other environmental conditions typical for climate changes such as long drought periods or long rainy periods can directly influence the guests' length of stay in the hotels and campsites as well as increasing the operating costs. A number of other natural disasters and calamities (earthquakes, fires and floods), air pollution caused by toxic gas emissions from industrial plants can also be included.
The company Valamar Riviera d.d. and the Group continuously strive to develop and operate according to good practices of corporate governance. The business strategy, corporate policy, key corporate regulations and business practice are all geared towards creating a transparent and efficient business operation while forging solid bonds with the local community. In order to foster further growth and set high corporate governance standards, the Company adopted its own Corporate Governance Code in 2008 and the Management Board fully complies with its provisions. After the company was listed on the official Market of the Zagreb Stock Exchange, the Company has also complied with the Zagreb Stock Exchange Governance Code (as reported in detail in the prescribed annual questionnaire).
The major direct shareholders according to the Central Depository and Clearing Company data are listed in the table in the "Share" section.
The basic risk management characteristics are described in the section "The Company and Group Risks".
There is a time limit related to the voting right at the General Assembly: according to the provisions of the Croatian Companies Act, shareholders are required to register their participation within the prescribed time limit in order to attend the General Assembly.
Under no circumstances can the financial right arising from securities be separated from holding the securities. There are no securities with special control rights nor are there any limitations to voting rights in the Company.
The Company's Articles of Association comply with the Croatian Companies Act and they define the procedure of appointing and recalling members of the Management Board and Supervisory Board.
According to the General Assembly's decision dated 17 November 2014, the Company can acquire its own shares. The Companies Act determines any amendments to the Company's Articles of Association, without any additional limitations.
The Board members' authority fully complies with the regulations prescribed by the Companies Act.
Management Board: Mr. Željko Kukurin, President of the Management Board, and Mr. Marko Čižmek, Member of the Management Board.
Supervisory Board: Mr. Gustav Wurmböck, Chairman, Mr. Franz Lanschützer, Deputy Chairman, Mr. Mladen Markoč, Deputy Chairman, and members: Mr. Georg Eltz, Mr. Hans Dominik Turnovszky, Mr. Vicko Ferić, and Ms. Mariza Jugovac.
In order to perform efficiently its function and duties as prescribed by the Audit Act, the Supervisory Board has formed the following bodies:
Presidium of the Supervisory Board: Mr. Gustav Wurmböck, Chairman, Mr. Franz Lanschützer and Mr. Mladen Markoč, Deputy Chairmens.
Audit Committee: Mr. Georg Eltz, Chairman, and members: Mr. Franz Lanschützer, Mr. Mladen Markoč, Mr. Vicko Ferić, and Mr. Dubravko Kušeta.
The Investment Committee: Mr. Franz Lanschützer, Chairman and members: Mr. Georg Eltz, Mr. Vicko Ferić, Mr. Hans Dominik Turnovszky, and Mr. Gustav Wurmböck.
Compliant to effective regulations and Company's bylaws, the Management and Supervisory Board primarily act through meetings and by correspondence in their decision-making.
Transactions between related parties within the Group are conducted under standard commercial terms and conditions and at current market prices.
In the period under review, revenues resulting from relatedparty transactions totaled HRK 546 thousand (in 2015: HRK 26.9 million) for the Company, and HRK 12 thousand (in 2015: HRK 14 thousand) for the Group, while expenses amounted to HRK 22.4 million (in 2015: HRK 26.0 million) for the Company, and HRK 581 thousand (in 2015: HRK 305 thousand) for the Group.
On 30 September 2016 the related-party receivables and payables balance totaled HRK 144.8 million20 receivables for the Company (at year-end 2015: HRK 165.0 million20), and HRK 2 thousand for the Group (at year-end 2015: HRK 2 thousand). There were no liabilities for the Company (at year-end 2015: HRK 306 thousand), and no liabilities for the Group (at the end of 2015: HRK 405 thousand).
Please note that pursuant to the Hotel Management Contract, from 2004 to 27 February 2015 the management of the Company's hospitality properties was entrusted to the then leading hospitality management company in Croatia, Valamar hoteli i ljetovališta d.o.o. The services concerned included the management of hotels and other hospitality facilities and services, the laundry and other centralized hospitality functions, such as Purchasing, Maintenance, Marketing, Sales, Human Resources, IT, etc.
The following branch offices were registered on 2 September 2011: Podružnica za turizam RABAC (branch office for tourism), with registered office in Rabac, Slobode 80, Podružnica za turizam ZLATNI OTOK (branch office for tourism), with registered office in Krk, Vršanska 8. Podružnica za turizam DUBROVNIK-BABIN KUK (branch office for tourism), with registered office in Dubrovnik, Dr. Ante Starčevića 45, was registered on 4 October 2013, and on 1 October 2014 Podružnica za savjetovanje u vezi s poslovanjem i upravljanjem ZAGREB (Branch Office for Business and Management Consulting), with registered office in Zagreb, Miramarska 24. The Rabac, Zlatni otok and Dubrovnik-Babin kuk branch offices, as economic drivers of their local communities, continue to operate in their destinations supporting their development by promoting further investments,hospitality development and participation in social and business activities.
20 For the most part refers to the re-invoiced amount arising from the investment made in the reconstruction and upgrading of the hotel Valamar Lacroma owned by subsidiary Elafiti Babin-kuk d.o.o.
In 2016, the Company acquired 1,873,884 treasury shares, out of which 1,440,942 shares were acquired on the regulated market at a total acquisition cost of HRK 35,692,643. The acquisition concerned represents 1.14% of the share capital. It also acquired 432,942 shares in the Bastion upravljanje d.o.o. merger which represents 0.34% of the share capital. In that period the Company released 1,454,078 treasury shares, representing 1.15% of the share capital. On 30 September 2016, the Company held in total 1,824,200 treasury shares, or 1.45% of the share capital.
In the period from 1 January 2016 to 30 September 2016, the highest recorded share price in regular trading on the regulated market was HRK 34.50, while the lowest was HRK 22.30. The Company's share price increased by 42.6%, exceeding both CROBEX and CROBEX 10 indices trends, which recorded a growth of 16.4%, and 15.8% respectively. With a regular trading turnover of HRK 830 thousand a day21, the Valamar Riviera's share is among the 3 most frequently traded shares on the Zagreb Stock Exchange.
Apart from the Zagreb Stock Exchange indices, the share makes a component part of the Vienna Stock Exchange indices (CROX22 and SETX23), and SEE Link indices24 (SEELinX and SEELinX EWI). Zagrebačka banka d.d.and Interkapital vrijednosni papiri d.o.o. perform specialist tasks of ordinary shares of the Company listed in the Official Market of Zagrebačka burza d.d. They provide support to Valamar Riviera's share turnover, which in the period under review was an average 33.7%25.
The Company actively holds meetings and conference calls with domestic and foreign investors, as well as presentations for investors thus providing support to high-level transparency, creation of additional liquidity, increase of share value, and involvement of potential investors. In pursuing such an approach, Valamar Riviera can contribute to the Company's value further growth for the benefit of all stakeholders, aiming at making the share recognizable as the leading Croatian tourism share.
Performance of Valamar Riviera's share and CROBEX and CROBEX 10 indices
Analytical coverage of Valamar Riviera is provided by:
consisting of blue chip stocks traded on stock exchanges in the region of South-eastern Europe (shares listed in Bucharest, Ljubljana, Sofia, Belgrade
and Zagreb). 24 SEE Link is a regional platform for securities trading. It was founded by Bulgarian, Macedonian, and Zagreb Stock Exchange. SEE LinX and SEE LinX EWI are two "blue chip" regional indices composed of ten most liquid regional companies listed on three Stock Exchanges: five from Croatia, three from Bulgaria, and two from Macedonia.
25 Block transactions are excluded from the calculation. Data refers to the period 1/1 - 30/9/2016.
Corporate social responsibility at Valamar Riviera is an integral part of a business tradition spanning 60 years in tourism and hospitality, rooted in the belief that sustainable business should be a strategic goal and key driver of new value. It is the foundation of all strategic initiatives and one of the key strategic company goals, including employee training and development, investments in the local community and caring for those in need, a systematic approach to preserving the environment and the Adriatic Sea, as well as corporate transparency and responsibility towards the stakeholders, investors and shareholders. CSR efforts are organized in eight umbrella programs through which we support various charitable, cultural, art and sports projects, while investing in the development of knowledge, skills and education in tourism and hospitality in collaboration with institutions and through environmental protection. Besides, we also support the activities of retired Valamar Riviera's employees. As one of the largest employers in Croatia (on 30 September 2016, the Company employed 3,869 employees, 1,039 of them permanent and 2,830 seasonal), the Company and the Group systematically and continuously invest in the development of human resources. An integral strategic approach to human resources management and top practices applied include transparent hiring processes, clear objectives, measurement of employees' performance, rewarding systems, opportunities for employees' career advancements, investment in employees' development, and encouraging a two-way communication through various channels.
Valamar Riviera is the initiator, partner and sponsor of this year's successful edition of the "Poreč Open Air" festival,
with over 100 events in Poreč during the entertainmentpacked three months of the festival period from 9 June to 10 September. Poreč proved to be an excellent host to this kind of festivals, as confirmed by the great feedback it received from all guests, visitors and hospitality workers, thus ranking very high among Adriatic destinations in terms of tourist events and entertainment. The Company has supported numerous sporting events, with Poreč Major being one of them. This premium event drew several thousand of visitors in July, thus confirming the tournament's recognized status both in the realm of sports and tourism, attracting an increasing amount of attention every year. September in Poreč was definitely marked by two events: the fourth edition of Oktoberfest by Valamar (9 days in September) and the second international big game tournament Offshore World Challenge Poreč 2016. A significant portion of our funds has been allocated to various sponsorships, donations and program support within the scope of the CSR programs in destination Dubrovnik as well. Valamar Riviera has, among others, supported the Dubrovnik Symphony Orchestra, "Sentimento" festival, Dubrovnik Summer Festival, "Jug" water polo club, "Dubrovnik" basketball club, Du Motion, "Valamar Junior Open"(international badminton junior tournament), "Libertas" basketball camp, "Tomo Udovičić"(international memorial water polo tournament for children).
For the third consecutive year, Valamar Riviera has successfully carried out the project "We love the Adriatic Sea" as part of the CSR program "Preserving the natural beauty and the environment where we work and live". By allocating almost HRK 100,000 out of the project funds in 2016, Valamar Riviera has provided active support to Initiatives aiming at preserving the Adriatic Sea with this program. The Rudar football club members have organized a beach cleanup covering the area from Girandella beach to Valamar Bellevue hotel beach. The members of the Mladi Rudar handball club have organized another cleanup in the Tunarica campsite, while the members of the Rabac underwater activities association have been in charge of cleaning up the seabed in this area. Another seabed cleanup has been organized in destination Dubrovnik: hundreds of scuba divers and volunteers, led by the members of the "Dubrovnik" diving club and "Abyss Dubrovnik" diving and water sports center, helped cleaning the area in front of Valamar Riviera's hotels, Solitudo campsite and Cava beach. In destination Poreč this project involved the participation of the "Horizont" sailing club: the older members together with the parents of children-competitors helped clean the coastal area from Peškera Bay to Borik, where they also helped restoring this area which was badly damaged during this winter's thunderstorm. The first Istrian branded e-bike station was inaugurated this August and Valamar Riviera supported this important project because energy efficiency and environmental preservation represent the strategic foundation on which the company's business is based.
Valamar Riviera has hosted the "Artist on Vacation" project for the fourth consecutive year. This year's edition saw the staging of the exhibition "The Power of the Powerless" by the artist, theoretician and curator Jiří Valoch at the Zuccato gallery in Poreč in early June, followed by a performance by the Hungarian artist Katalin Ladik a few days later. The project's closing was marked by the visit of the Polish artist Jaroslaw Kozlowski and Croatian artist Vladimir Gudac. Over 50 artists have participated so far in the project activities and spent part of their summer vacation at Valamar. The artists will present their work, performances and documentation at an exhibition which will be held at the Museum of Contemporary Art in Zagreb in November.
Valamar has supported the "Industrial Art Biennale", one of the most important regional and national art events with a donation of HRK 60 thousand. With over 80 renowned contemporary artist from around the world participating, the central part of the event was the exhibition by Joseph Beuys, one of the greatest 20th century artists. This donation represents the continual joint efforts between Valamar Riviera and the Town of Labin, the organizer of this important art festival in collaboration with the Labin Art Express XXII association. For the first time this summer, the highly popular Art colony moved from St. Nicholas' island to a mainland hotel, the Pical. The idea behind this longstanding project, during which artists work at one of Valamar's properties and then leave their works to the company, this year it has welcomed six artists from Italy. The Art colony started in 1983. Every year artists from all parts of Europe and Croatia stay at one of Valamar's properties for a week: the works created during this period become part of Valamar's art fund, while several paintings and sculptures are also displayed at some of Valamar's properties.
As part of the national program "A Thousand Days on the Adriatic Sea", in 2016 Valamar Riviera has donated over a thousand free overnights to associations, institutions and schools from all parts of Croatia. These are children without adequate parental care, children from low-income families, special needs children and children with specific health problems who would benefit from staying on the coast. In 2016, 28 associations have received donations and most of the children and their supervisors have already visited one of Valamar Riviera's property. Valamar Riviera continues to support the company's retired employees – "Rivera's Seniors". In September the "Galija" pensioners' club
from Poreč and their guests from Crikvenica visited St. Nicholas' island and received tickets to the Istria Inspirit event at the Poreč Open Air festival.
As the leading Croatian tourism share and a company with around 21 thousand shareholders, on 9 June 2016, Valamar Riviera organised its first Investors Day, making a step forward towards not only its present and future investors, but also the wider public. On that occasion, a new 2020 development strategy and goals were presented, as well as the first 2015 Integrated Annual Report published on the Zagreb Stock Exchange and available on the corporate web-site (more details in chapter "Integrated report 2015" on page 36). The first Valamar Riviera's Investors Day was met with great interest by media and investors, including 30 funds, banks, analytics, broker, and insurance companies, as well as a number of private investors. Sustainable and socially responsible development of destinations combined with investments of up to 2.5% of revenues in corporate social responsibility, education, and tourism destination development projects make an integral part of the Valamar Riviera's business operations.
Valamar Riviera's continual investment efforts in improving the quality of its products and services, is increasingly recognised by the general public, peers, institutions and partners. In the first nine months of 2016 only, Valamar Riviera's hotels, resorts, and camping resorts have received prestigious awards and certificates. Valamar Riviera's properties continuously receive high scores and excellent guest reviews on the most prominent travel websites.
| Awarding organisation | Award | Winner |
|---|---|---|
| Le monde du plein air Caravane - Camping |
Les plus beax campings d'Europe | Camping Lanterna |
| ADAC | Best Camping 2016 | Camping Lanterna, Camping Krk |
| ANWB | Best Campsite | Camping Lanterna, Camping Krk |
| Camping2be.com | Camping2be 2016 Award | Camping Lanterna |
| Croatian Committee of the Foundation for Environmental Education |
Golden Plaque | Valamar Dubrovnik President Beach |
| DCC Europa-Preis | Camping award 2016 | Camping Krk |
| FEE (Foundation for Environmental Education) |
Blue Flag | Valamar Dubrovnik President Beach, Cava Beach |
| HolidayCheck | HolidayCheck Quality selection 2016 | Valamar Club Dubrovnik |
| Hotels.com | 2016 Certificate of Excellence | Valamar Lacroma Dubrovnik Hotel, Valamar Dubrovnik President Hotel, Valamar Argosy Hotel, Tirena Hotel, Valamar Club Dubrovnik |
| IHAC | IHAC reward | Valamar Argosy Hotel, Tirena Hotel |
| Kongres magazine | TOP 10 Premium Resorts Meeting Hotels | Valamar Lacroma Dubrovnik |
| KUH | Croatia's Best Campsite | Naturist Resort Solaris, Camping Lanterna, Camping Krk, Camping Orsera, Camping Marina, Naturist Camping Istra, Camping Ježevac |
| TripAdvisor | 2016 Travellers' Choice winner | Valamar Club Tamaris |
| TripAdvisor | 2016 Travelers' Choice award | Valamar Rivera Hotel |
| TripAdvisor | 2016 Travelers' Choice award | Valamar Isabella Hotel |
| TripAdvisor | 2016 Travelers' Choice award | Valamar Dubrovnik President Hotel |
| TripAdvisor | 2016 Certificate of Excellence | Valamar Argosy Hotel |
| World Travel Awards | Croatia's Leading Resort | Valamar Club Tamaris |
| World Travel Awards | Croatia's Leading Boutique Hotel | Valamar Riviera Hotel |
| World Travel Awards | Croatia's Leading Business Hotel 2016 | Valamar Lacroma Dubrovnik |
| World Travel Awards | Croatia's Leading Hotel 2016 | Valamar Lacroma Dubrovnik |
| TripAdvisor | 2016 Certificate of Excellence | Valamar Argosy Hotel |
The first 2015 Integrated Annual Report was presented during Valamar Riviera's Investors Day on 9 June 2016. The Report was prepared according to G4 GRI guidelines and it aims at presenting a strategic and long-term insight into the Company's business operations to all the key stakeholders, including: Valamar Riviera's shareholders, employees, partners, guests and society at large. It particularly focuses on corporate social responsibility, as this is the basis of Valamar Riviera's sustainable business operations and further growth.
Valamar Riviera's business model includes the development and maintenance of its hospitality properties, the operating management of hotels, resorts and camping resorts, and the management of other hospitality services in its destinations. This approach enables Valamar Riviera to manage the total guest experience, and to be an important partner to its destinations. The experience in property development and technical maintenance optimizes investments and returns, while the management of the whole value chain improves the quality of service and revenue per guest.
Valamar Riviera's goal is to drive a paradigm shift in leisure tourism development and harness a symbiotic relationship between hospitality and destination management that develops local economies, builds sustainable futures and creates a more enriching guest experience.
Valamar Riviera's mission is to proudly express its culture through inspiring hospitality and destination experiences, form a seamless integration of local discovery and authentic hospitality that enriches lives, and grow and deliver exceptional and sustainable value.
We make our guests feel very welcome and highly appreciated.
We set ourselves challenging targets and strive for excellence in everything we do.
We are responsible in our business partnerships, caring for our employees, supportive towards society and committed to the environment.
We engage in collaborative innovation to improve our performance, stay alert and always remain open to change.
We take pride in our destinations and in being part of the Valamar family.
Grow significantly by retaining market leadership in the Croatian market with two digit EBITDA-CAGR over the next 5 years and through acquisitions or strategic partnership in selected destinations in the leisure hospitality sector in Europe.
Invest HRK 1.5 - 2.0 billion in the portfolio over the coming period while maintaining a solid balance sheet and generate premium returns by steadily growing the EBITDA margin to 35- 38% with a sustainable net debt/EBITDA ratio.
Strengthen direct relationships with guests by achieving 50% of revenue from direct bookings and 30% of returning guests.
Broaden and optimize business through strategic partnerships with internationally recognized players in order to prolong the season and diversify the customer base.
Be recognized as the most desirable employer in tourism by paying above-average salaries for Croatia, achieving 70% seasonal worker return rate and developing more than 80% of the management internally.
Steer sustainable and socially responsible development of destinations by investing at least 2.5% of revenues in corporate social responsibility, education, tourism and destination projects.
Create substantial value for shareholders by significantly increasing the market capitalization.
Offer attractive and sustainable dividends to the shareholders.
In order to realize its strategic goals, Valamar Riviera has defined five key strategic initiatives:
Provide superb quality to create positive moments and lasting memories for every guest each day and address them individually throughout the entire year.
Develop, empower and reward employees to become the heart of a guest-centric service organization and create long-term and trusting relationships with employees.
Focus on strong growth in both revenues and profits by utilizing internal capabilities, enhancing guest-focus and development through strategic partnerships, mergers and acquisitions
Be the leading innovator in the leisure hospitality industry in Europe and leverage opportunities provided by digitization to fully meet the guests' needs.
Play a leading role in the development of Croatian tourism, Valamar Riviera's destinations and corporate social responsibility.
Strategic goals are subject to a disclaimer mentioned in the Integrated Company Annual Report and Corporate Social Responsibility 2015 on page 110.
The report is available at the Zagreb Stock Exchange's and Valamar Riviera's website: www.valamar-riviera.com
In the course of the third quarter of 2016 and the first nine months (from 1 January to 30 September 2016), the Management Board managed and represented the company in compliance with the provisions of pertaining legal acts and the Articles of Associations, while prudently planning and implementing the business policy. The Management Board will continue to undertake all the necessary measures in order to ensure sustainability and business growth.
On 25 October 2016 the Management Board adopted the financial statements for the third quarter of 2016 and for the period from 1 January 2016 to 30 September 2016.
The Management Board expresses its gratitude to all shareholders, business partners and guests for their support and trust and particularly to all employees for their contribution.
Management Board of the Company
In Poreč, 24 October 2016
In accordance with provisions of Law on Capital Market, Marko Čižmek, Management board member responsible for finance, treasury and IT business as well as relations with institutional investors and Ljubica Grbac director of department of finance and accounting, procurator and person responsible for finance and accounting, together as persons responsible for the preparation of quarterly reports of company Valamar Riviera d.d. seated in Poreč, Stancija Kaligari 1, OIB 36201212847 (hereinafter: Company), hereby make the following
According to our best knowledge
Member of the Management Board Director of Department of Finance and Accounting
Marko Čižmek Ljubica Grbac
Quarterly financial report TFI-POD
| Tax number (MB): | 3474771 | |||
|---|---|---|---|---|
| Company registration number (MBS): |
040020883 | |||
| Personal identification number (OIB): |
36201212847 | |||
| Issuing company: | Valamar Riviera d.d. | |||
| Postal code and place | 52440 | Poreč | ||
| Street and house number: | Stancija Kaligari 1 | |||
| E-mail address: | [email protected] | |||
| Internet address: | www.valamar-riviera.com | |||
| Municipality/city code and name: | 348 | Poreč | ||
| Number of | ||||
| employees: | ||||
| County code and name: | 18 | Istarska | (period end) | 3.901 |
| NKD code: | 5510 | |||
| Consolidated report: | YES | |||
| Companies of the consolidation subject (according to IFRS): |
Seat: | MB: | ||
| Valamar hoteli i ljetovališta d.o.o. | Zagreb | 01537369 | ||
| Valamar hotels & resorts GmbH | Frankfurt | 04724750667 | ||
| Hoteli Baška d.d. | Baška | 03035140 | ||
| Mirta Bašćanska d.o.o. | Baška | 01841017 | ||
| Vala Bašćanska d.o.o. | Baška | 02086131 | ||
| Baškaturist d.o.o. | Baška | 03849236 | ||
| Puntižela d.o.o. | Pula | 03203379 | ||
| Citatis d.o.o. | Zagreb | 02626969 | ||
| Bastion upravljanje d.o.o. | Zagreb | 01877453 | ||
| Elafiti Babin kuk d.o.o. | Dubrovnik | 01273094 | ||
| Magične stijene d.o.o. | Dubrovnik | 02315211 | ||
| Palme turizam d.o.o. | Dubrovnik | 02006103 | ||
| Pogača Babin Kuk d.o.o. | Dubrovnik | 02236346 | ||
| Bugenvilia d.o.o. | Dubrovnik | 02006120 | ||
| Bookkeeping service: | ||||
| Contact person: | Sopta Anka | |||
| (only surname and name) | ||||
| Telephone: | 052/408 188 | Telefaks: | 052/408 110 | |
| E-mail address: | [email protected] | |||
| Family name and name: | Kukurin Željko, Čižmek Marko | |||
| (person authorized to represent the company) |
Documents disclosed:
(Balance Sheet, Income Statement, Cash Flow Statement, Statement of Changes in Equity and notes to financial statements)
Management Interim Report
Declaration of the persons responsible for preparing the issuer's statements
L.S. (signature of the person authorized to represent the company)
| Position | AOP | Previous period | Current period |
|---|---|---|---|
| 1 | 2 | 3 | 4 |
| ASSETS | |||
| A) RECEIVABELS FOR SUBSCRIBED NOT PAID CAPITAL | 001 | ||
| B) NON-CURRENT ASSETS (003+010+020+029+033) | 002 | 3.190.008.042 | 3.198.227.789 |
| I. INTANGIBLE ASSETS (004 to 009) | 003 | 17.006.943 | 23.060.501 |
| 1. Expenditure for development | 004 | ||
| 2. Concessions, patents, licenses, trademarks, service marks, software and other rights | 005 | 10.327.568 | 9.095.454 |
| 3. Goodwill | 006 | 6.567.609 | 6.567.609 |
| 4. Advances for purchase of intangible assets | 007 | ||
| 5. Intangible assets in progress | 008 | 111.766 | 7.397.438 |
| 6. Other intangible assets | 009 | ||
| II. PROPERTY, PLANT AND EQUIPMENT (011 to 019) | 010 | 3.065.294.774 | 3.105.732.264 |
| 1. Land | 011 | 659.328.328 | 659.064.989 |
| 2. Buildings | 012 | 2.052.868.793 | 1.959.456.979 |
| 3. Plant and equipement | 013 | 203.822.037 | 183.474.369 |
| 4. Tools, working inventory and transportation assets | 014 | 64.897.404 | 68.838.167 |
| 5. Biological assets | 015 | ||
| 6. Advances for purchase of tangible assets | 016 | 5.072.180 | 2.620.538 |
| 7. Tangible assets in progress | 017 | 32.731.559 | 188.310.773 |
| 8. Other tangible assets | 018 | 24.833.592 | 22.768.051 |
| 9. Investment in real-estate | 019 | 21.740.881 | 21.198.398 |
| III. NON-CURRENT FINANCIAL ASSETS (021 to 028) | 020 | 46.547.373 | 6.671.140 |
| 1. Share in related parties | 021 | 1.241.421 | 1.658.908 |
| 2. Loans to related parties | 022 | ||
| 3. Participating interests (shares) | 023 | 140.000 | 140.000 |
| 4. Loans to companies with participating interest | 024 | ||
| 5. Investments in securities | 025 | 44.761.794 | 4.545.999 |
| 6. Loans, deposits, etc. | 026 | 404.158 | 326.233 |
| 7. Other non-current financial assets | 027 | ||
| 8. Equity-accounted investments | 028 | ||
| IV. RECEIVABLES (030 to 032) | 029 | 645.153 | 424.725 |
| 1. Receivables from related parties | 030 | ||
| 2. Receivables arising from sales on credit | 031 | 286.116 | 248.298 |
| 3. Other receivables | 032 | 359.037 | 176.427 |
| V. DEFERRED TAX ASSET | 033 | 60.513.799 | 62.339.159 |
| C) CURRENT ASSETS (035+043+050+058) | 034 | 355.363.412 | 785.597.328 |
| I. INVENTORIES (036 to 042) | 035 | 9.761.018 | 11.729.394 |
| 1. Raw materials and supplies | 036 | 8.951.383 | 11.252.065 |
| 2. Production in progress | 037 | ||
| 3. Finished products | 038 | ||
| 4. Merchandise | 039 | 64.641 | 477.329 |
| 5. Advances for inventories | 040 | ||
| 6. Long term assets held for sale | 041 | 744.994 | |
| 7. Biological assets | 042 | ||
| II. RECEIVABLES (044 to 049) | 043 | 26.681.432 | 119.039.699 |
| 1. Receivables from related parties | 044 | 458 | 654 |
| 2. Receivables from end-customers | 045 | 13.147.988 | 106.830.857 |
| 3. Receivables from participating parties | 046 | 253 | 253 |
| 4. Receivables from employees and members of the company | 047 | 485.727 | 2.963.278 |
| 5. Receivables from government and other institutions | 048 | 9.285.057 | 3.696.357 |
| 6. Other receivables | 049 | 3.761.949 | 5.548.300 |
| III. CURRENT FINANCIAL ASSETS (051 to 057) | 050 | 165.680 | 1.397.203 |
| 1. Share in related parties | 051 | ||
| 2. Loans to related parties | 052 | ||
| 3. Participating interests (shares) | 053 | ||
| 4. Loans to companies with participating interest | 054 | ||
| 5. Investments in securities | 055 | ||
| 6. Loans, deposits, etc. | 056 | 24.845 | 702.869 |
| 7. Other financial assets | 057 | 140.835 | 694.334 |
| IV. CASH AND CASH EQUIVALENTS | 058 | 318.755.282 | 653.431.032 |
| D) PREPAYMENTS AND ACCRUED INCOME | 059 | 21.247.239 | 75.153.181 |
| E) TOTAL ASSETS (001+002+034+059) | 060 | 3.566.618.693 | 4.058.978.298 |
| F) OFF BALANCE SHEET ITEMS | 061 | 54.717.679 | 54.657.377 |
| Position | AOP | Previous period | Current period |
|---|---|---|---|
| 1 | 2 | 3 | 4 |
| EQUITY AND LIABILITIES | |||
| A) ISSUED CAPITAL AND RESERVES (063+064+065+071+072+075+078) | 062 | 1.901.690.680 | 2.297.263.250 |
| I. SUBSCRIBED SHARE CAPITAL | 063 | 1.672.021.210 | 1.672.021.210 |
| II. CAPITAL RESERVES | 064 | -373.815 | 3.573.938 |
| III.RESERVES FROM PROFIT (066+067-068+069+070) | 065 | 62.737.202 | 85.417.585 |
| 1. Legal reserves | 066 | 61.906.040 | 67.198.750 |
| 2. Reserve for own shares | 067 | 34.344.407 | 44.815.284 |
| 3. Treasury shares and shares (deductible items) | 068 | 33.513.245 | 36.125.572 |
| 4. Statutory reserves | 069 | ||
| 5. Other reserves | 070 | 9.529.123 | |
| IV. REVALUATION RESERVES | 071 | 31.189.526 | 407.047 |
| V. RETAINED EARNINGS OR LOSS CARRIED FORWARD (073-074) | 072 | 30.576.912 | 36.541.452 |
| 1. Retained earnings | 073 | 30.576.912 | 36.541.452 |
| 2. Loss carried forward | 074 | ||
| VI. NET PROFIT OR LOSS FOR THE PERIOD (076-077) | 075 | 105.441.776 | 499.159.070 |
| 1. Net profit for the period | 076 | 105.441.776 | 499.159.070 |
| 2. Net loss for the period | 077 | ||
| VII. MINORITY INTEREST | 078 | 97.869 | 142.948 |
| B) PROVISIONS (080 to 082) | 079 | 87.186 | 0 |
| 1. Provisions for pensions, severance pay and similar liabilities | 080 | ||
| 2. Provisions for tax liabilities | 081 | 16.011 | |
| 3. Other provisions | 082 | 71.175 | |
| C) NON-CURRENT LIABILITIES (084 to 092) | 083 | 1.331.861.034 | 1.406.935.591 |
| 1. Liabilites to related parties | 084 | ||
| 2. Liabilities for loans, deposits, etc. | 085 | ||
| 3. Liabilities to banks and other financial institutions | 086 | 1.306.223.976 | 1.383.974.101 |
| 4. Liabilities for advances | 087 | ||
| 5. Trade payables | 088 | ||
| 6. Commitments on securities | 089 | ||
| 7. Liabilities to companies with participating interest | 090 | ||
| 8. Other non-current liabilities | 091 | 2.833.087 | 3.001.480 |
| 9. Deferred tax liabilities | 092 | 22.803.971 | 19.960.010 |
| D) CURRENT LIABILITIES (094 to 105) | 093 | 229.556.759 | 235.668.345 |
| 1. Liabilites to related parties | 094 | 70.585 | |
| 2. Liabilities for loans, deposits, etc. | 095 | ||
| 3. Liabilities to banks and other financial institutions | 096 | 139.838.023 | 33.910.522 |
| 4. Liabilities for advances | 097 | 14.788.881 | 66.910.361 |
| 5. Trade payables | 098 | 47.731.018 | 75.993.118 |
| 6. Commitments on securities | 099 | ||
| 7. Liabilities to companies with participating interest | 100 | ||
| 8. Liabilities to emloyees | 101 | 15.738.902 | 27.504.554 |
| 9. Taxes, contributions and similar liabilities | 102 | 7.870.246 | 28.725.989 |
| 10. Liabilities arising from share in the result | 103 | 45.653 | 72.403 |
| 11. Liabilities arising from non-current assets held for sale | 104 | 2.832 | |
| 12. Other current liabilities | 105 | 3.470.619 | 2.551.398 |
| E) ACCRUED EXPENSES AND DEFERRED INCOME | 106 | 103.423.034 | 119.111.112 |
| F) TOTAL EQUITY AND LIABILITIES (062+079+083+093+106) | 107 | 3.566.618.693 | 4.058.978.298 |
| G) OFF BALANCE SHEET ITEMS | 108 | 54.717.679 | 54.657.377 |
| ADDITION TO BALANCE SHEET (only for consolidated financial statements) | |||
| A) ISSUED CAPITAL AND RESERVES | |||
| 1. Attributable to majority owners | 109 | 1.901.592.811 | 2.297.120.302 |
| 2. Attributable to minority interest | 110 | 97.869 | 142.948 |
| Position | AOP | Previous period | Current period | ||
|---|---|---|---|---|---|
| Cummulative | Quarter | Cummulative | Quarter | ||
| 1 | 2 | 3 | 4 | 5 | 6 |
| I. OPERATING INCOME (112 to 113) | 111 | 1.222.932.767 | 867.522.782 | 1.405.912.098 | 970.706.974 |
| 1. Sales revenues | 112 | 1.204.362.692 | 861.540.787 | 1.382.496.771 | 962.848.167 |
| 2. Other operating revenues | 113 | 18.570.075 | 5.981.995 | 23.415.327 | 7.858.807 |
| II. OPERATING COSTS | 114 | 845.691.525 | 405.276.572 | 946.313.694 | 465.976.333 |
| (115+116+120+124+125+126+129+130) | |||||
| 1. Change in inventories of work in progress | 115 | ||||
| 2. Material expenses (117 to 119) | 116 | 332.950.244 | 185.798.997 | 359.946.104 | 211.774.917 |
| a) Costs of raw materials | 117 | 185.163.228 | 104.518.436 | 207.874.892 | 116.346.486 |
| b) Cost of goods sold | 118 | 1.370.244 | 978.622 | 2.235.915 | 1.670.878 |
| c) Other material expenses | 119 | 146.416.772 | 80.301.939 | 149.835.297 | 93.757.553 |
| 3. Employee benefits expenses (121 to 123) | 120 | 238.514.510 | 112.020.256 | 288.972.289 | 143.373.839 |
| a) Net salaries | 121 | 143.213.320 | 67.771.590 | 181.108.553 | 93.040.814 |
| b) Tax and contributions from salary expenses | 122 | 61.406.239 | 28.359.200 | 68.129.422 | 32.169.764 |
| c) Contributions on salary | 123 | 33.894.951 | 15.889.466 | 39.734.314 | 18.163.261 |
| 4. Depreciation and amortisation | 124 | 177.949.360 | 63.151.934 | 197.103.933 | 65.701.837 |
| 5. Other expenses | 125 | 87.024.041 | 39.620.050 | 89.863.787 | 39.008.337 |
| 6. Write down of assets (127+128) | 126 | 711.709 | 475.902 | 271.483 | 229.733 |
| a) non-current assets (except financial assets) | 127 | ||||
| b) current assets (except financial assets) | 128 | 711.709 | 475.902 | 271.483 | 229.733 |
| 7. Provisions | 129 | ||||
| 8. Other operating costs | 130 | 8.541.661 | 4.209.433 | 10.156.098 | 5.887.670 |
| III. FINANCIAL INCOME (132 to 136) | 131 | 30.340.779 | 13.372.108 | 81.453.879 | 9.495.133 |
| 1. Interest, foreign exchange differences, dividends and similar income from related parties |
132 | ||||
| 2. Interest, foreign exchange differences, dividends and similar income from third parties |
133 | 24.916.991 | 12.222.959 | 35.594.645 | 6.482.160 |
| 3. Income from investments in associates and joint ventures | 134 | ||||
| 4. Unrealised gains (income) from financial assets | 135 | 4.059.944 | 706.426 | 8.150.742 | 2.277.091 |
| 5. Other financial income | 136 | 1.363.844 | 442.723 | 37.708.492 | 735.882 |
| IV. FINANCIAL EXPENSES (138 to 141) | 137 | 62.688.864 | 21.462.847 | 43.807.787 | 14.323.039 |
| 1. Interest, foreign exchange differences, dividends and similar expenses from related parties |
138 | ||||
| 2. Interest, foreign exchange differences, dividends and similar expenses from third parties |
139 | 57.808.168 | 18.611.680 | 33.082.695 | 10.087.368 |
| 3. Unrealised losses (expenses) from financial assets | 140 | 4.450.709 | 2.778.931 | 7.293.756 | 2.367.168 |
| 4. Other financial expenses | 141 | 429.987 | 72.236 | 3.431.336 | 1.868.503 |
| V. SHARE OF PROFIT FROM ASSOCIATED COMPANIES | 142 | ||||
| VI. SHARE OF LOSS FROM ASSOCIATED COMPANIES | 143 | ||||
| VII. EXTRAORDINARY - OTHER INCOME | 144 | ||||
| VIII. EXTRAORDINARY - OTHER EXPENSES | 145 | ||||
| IX. TOTAL INCOME (111+131+142+144) | 146 | 1.253.273.546 | 880.894.890 | 1.487.365.977 | 980.202.107 |
| X. TOTAL EXPENSES (114+137+143+145) | 147 | 908.380.389 | 426.739.419 | 990.121.481 | 480.299.372 |
| XI. PROFIT OR LOSS BEFORE TAXES (146-147) | 148 | 344.893.157 | 454.155.471 | 497.244.496 | 499.902.735 |
| 1. Profit before taxes (146-147) | 149 | 344.893.157 | 454.155.471 | 497.244.496 | 499.902.735 |
| 2. Loss before taxes (147-146) | 150 | 0 | 0 | 0 | 0 |
| XII. TAXATION | 151 | -637.338 | -1.959.653 | ||
| XIII. PROFIT OR LOSS FOR THE PERIOD (148-151) | 152 | 345.530.495 | 454.155.471 | 499.204.149 | 499.902.735 |
| 1. Profit for the period (149-151) | 153 | 345.530.495 | 454.155.471 | 499.204.149 | 499.902.735 |
| 2. Loss for the period (151-148) | 154 | 0 | 0 | 0 | 0 |
Company: Valamar Riviera d.d.
| Position | AOP | Previous period | Current period | ||
|---|---|---|---|---|---|
| Cummulative | Quarter | Cummulative | Quarter | ||
| 1 | 2 | 3 | 4 | 5 | 6 |
| XIV. PROFIT OR LOSS FOR THE PERIOD | |||||
|---|---|---|---|---|---|
| 1. Attributable to majority owners | 155 | 344.223.805 | 452.847.677 | 499.159.070 | 499.856.028 |
| 2. Attributable to minority interest | 156 | 1.306.690 | 1.307.794 | 45.079 | 46.707 |
| 157 | 345.530.495 | 454.155.471 | 499.204.149 | 499.902.735 |
|---|---|---|---|---|
| 158 | 6.809.998 | 6.809.998 | -33.475.610 | -443.099 |
| 160 | ||||
| 161 | 6.809.998 | 6.809.998 | -33.475.610 | -443.099 |
| 162 | ||||
| 163 | ||||
| 164 | ||||
| 165 | ||||
| 166 | 1.361.999 | 1.361.999 | -2.693.131 | -88.620 |
| 167 | 5.447.999 | 5.447.999 | -30.782.479 | -354.479 |
| 168 | 350.978.494 | 459.603.470 | 468.421.670 | 499.548.256 |
| 159 |
| VI. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD |
|||||
|---|---|---|---|---|---|
| 1. Attributable to majority owners | 169 | 349.671.804 | 458.295.676 | 468.376.591 | 499.501.549 |
| 2. Attributable to minority interest | 170 | 1.306.690 | 1.307.794 | 45.079 | 46.707 |
| Position | AOP | Previous period | Current period |
|---|---|---|---|
| 1 | 2 | 3 | 4 |
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
| 1. Profit before tax | 001 | 344.223.805 | 497.244.496 |
| 2. Depreciation and amortisation | 002 | 177.949.360 | 197.103.933 |
| 3. Increase of current liabilities | 003 | 83.415.854 | 112.039.087 |
| 4. Decrease of current receivables | 004 | ||
| 5. Decrease of inventories | 005 | ||
| 6. Other cash flow increases | 006 | 22.423.309 | 15.908.506 |
| I. Total increase of cash flow from operating activities (001 to 006) | 007 | 628.012.328 | 822.296.022 |
| 1. Decrease of current liabilities | 008 | ||
| 2. Increase of current receivables | 009 | 96.570.296 | 92.358.267 |
| 3. Increase of inventories | 010 | 187.248 | 1.968.376 |
| 4. Other cash flow decreases | 011 | 46.457.006 | 55.963.736 |
| II. Total decrease of cash flow from operating activities (008 to 011) | 012 | 143.214.550 | 150.290.379 |
| A1) NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (007-012) | 013 | 484.797.778 | 672.005.643 |
| A2) NET DECREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007) | 014 | 0 | 0 |
| CASH FLOW FROM INVESTING ACTIVITIES | |||
| 1. Proceeds from sale of non-current assets | 015 | ||
| 2. Proceeds from sale of non-current financial assets | 016 | 39.876.233 | |
| 3. Interest received | 017 | ||
| 4. Dividend received | 018 | ||
| 5. Other proceeds from investing activities | 019 | ||
| III. Total cash inflows from investing activities (015 to 019) | 020 | 0 | 39.876.233 |
| 1. Purchase of non-current assets | 021 | 665.486.088 | 243.594.982 |
| 2. Purchase of non-current financial assets | 022 | ||
| 3. Other cash outflows from investing activities | 023 | 6.868.984 | 1.870.439 |
| IV. Total cash outflows from investing activities (021 to 023) | 024 | 672.355.072 | 245.465.421 |
| B1) NET INCREASE OF CASH FLOW FROM INVESTING ACTIVITIES (020-024) | 025 | 0 | 0 |
| B2) NET DECREASE OF CASH FLOW FROM INVESTING ACTIVITIES (024-020) | 026 | 672.355.072 | 205.589.188 |
| CASH FLOW FROM FINANCING ACTIVITIES | |||
| 1. Proceeds from issue of equity securities and debt securities | 027 | 7.410.609 | |
| 2. Proceeds from loans and borrowings | 028 | 358.107.825 | |
| 3. Other proceeds from financing activities | 029 | 1.320.509 | |
| V. Total cash inflows from financing activities (027 to 029) | 030 | 366.838.943 | 0 |
| 1. Repayment of loans and bonds | 031 | 28.177.377 | |
| 2. Dividends paid | 032 | 68.922.466 | 37.330.521 |
| 3. Repayment of finance lease | 033 | ||
| 4. Purchase of treasury shares | 034 | 12.767.997 | 35.692.643 |
| 5. Other cash outflows from financing activities | 035 | 143.948 | 30.540.164 |
| VI. Total cash outflows from financing activities (031 to 035) | 036 | 81.834.411 | 131.740.705 |
| C1) NET INCREASE OF CASH FLOW FROM FINANCING ACTIVITIES (030-036) | 037 | 285.004.532 | 0 |
| C2) NET DECREASE OF CASH FLOW FROM FINANCING ACTIVITIES (036-030) | 038 | 0 | 131.740.705 |
| Total increases of cash flows (013-014+025-026+037-038) | 039 | 97.447.238 | 334.675.750 |
| Total decreases of cash flows (014-013+026-025+038-037) | 040 | 0 | 0 |
| Cash and cash equivalents at the beginning of period | 041 | 195.201.504 | 318.755.282 |
| Increase of cash and cash equivalents | 042 | 97.447.238 | 334.675.750 |
| Decrease of cash and cash equivalents | 043 | 0 | |
| Cash and cash equivalents at the end of period | 044 | 292.648.742 | 653.431.032 |
| Position | AOP | Previous year | Current year |
|---|---|---|---|
| 1 | 2 | 3 | 4 |
| 1. Subscribed share capital | 001 | 1.672.021.210 | 1.672.021.210 |
| 2. Capital reserves | 002 | -373.815 | 3.573.938 |
| 3. Reserves from profit | 003 | 62.737.202 | 85.417.585 |
| 4. Retained earnings or loss carried forward | 004 | 30.576.912 | 36.541.452 |
| 5. Net profit or loss for the period | 005 | 105.441.776 | 499.159.070 |
| 6. Revaluation of tangible assets | 006 | ||
| 7. Revaluation of intangible assets | 007 | ||
| 8. Revaluation of available for sale assets | 008 | 31.189.526 | 407.047 |
| 9. Other revaluation | 009 | ||
| 10. Total equity and reserves (AOP 001 to 009) | 010 | 1.901.592.811 | 2.297.120.302 |
| 11. Foreign exchenge differences from foreign investments | 011 | ||
| 12. Current and deferred taxes | 012 | ||
| 13. Cash flow hedge | 013 | ||
| 14. Change of accounting policies | 014 | ||
| 15. Correction of significant mistakes of prior period | 015 | ||
| 16. Other changes | 016 | ||
| 17.Total increase or decrease of equity (AOP 011 to 016) | 017 | 0 | 0 |
| 17 a. Attributable to majority owners | 018 | 1.901.592.811 | 2.297.120.302 |
| 17 b. Attributable to minority interest | 019 | 97.869 | 142.948 |
(1) The notes to financial statements include additional and supplemental information not presented in the Balance Sheet, Income Statement, Cash Flow Statement or the Statement of Changes in Equity in accordance with the provisions of the relevant financial reporting standards.
| Companies of the consolidation subject | Balance sheet-previous period | Balance sheet-current period |
|---|---|---|
| 2015. | 31.12.2015. | 30.9.2016. |
| Valamar hoteli i ljetovališta d.o.o. | Yes (merged to Valamar Riviera d.d. 27.2.2015.) | |
| Citatis d.o.o. | Yes (merged to Bastion d.o.o. 12.11.2015.) | |
| Mirta Bašćanska d.o.o. | Yes (merged to Hoteli Baška d.d. 13.1.2016.) | |
| Vala Bašćanska d.o.o. | Yes (merged to Hoteli Baška d.d. 13.1.2016.) | |
| Baškaturist d.o.o. | Yes (merged to Hoteli Baška d.d. 13.1.2016.) | |
| Hoteli Baška d.d. | Yes (merged to Valamar Riviera d.d. 31.3.2016.) | |
| Bastion upravljanje d.o.o. | Yes (merged to Valamar Riviera d.d. 30.6.2016.) | |
| Valamar hotels & resorts GmbH | Yes | No |
| Elafiti Babin kuk d.o.o. | Yes | Yes |
| Magične stijene d.o.o. | Yes | Yes |
| Palme turizam d.o.o. | Yes | Yes |
| Pogača Babin Kuk d.o.o. | Yes | Yes |
| Bugenvilia d.o.o. | Yes | Yes |
| Puntižela d.o.o. | Yes | Yes |
| Companies of the consolidation subject: | Income statment-previous period | Income statment-current period |
|---|---|---|
| 2016. | 30.9.2015. | 30.9.2016. |
| Valamar hoteli i ljetovališta d.o.o. | 1.1.-27.2. | - |
| (merged to Valamar Riviera d.d. 27.2.2015.) | ||
| Citatis d.o.o. | 01.1.-30.9. | - |
| (merged to Bastion d.o.o. 12.11.2015.) | ||
| Mirta Bašćanska d.o.o. | - | 1.1.-13.1. |
| (merged to Hoteli Baška d.d. 13.1.2016.) | ||
| Vala Bašćanska d.o.o. | - | 1.1.-13.1. |
| (merged to Hoteli Baška d.d. 13.1.2016.) | ||
| Baškaturist d.o.o. | - | 1.1.-13.1. |
| (merged to Hoteli Baška d.d. 13.1.2016.) | ||
| Hoteli Baška d.d. | - | 1.1.-31.3. (merged to Valamar Riviera d.d. 31.3.2016.) |
| Valamar hotels & resorts GmbH | - | - |
| Bastion upravljanje d.o.o. | 1.1.-30.9. | 1.1.-30.6. (merged to Valamar Riviera d.d. 30.6.2016.) |
| Elafiti Babin kuk d.o.o. | 1.1.-30.9. | 1.1.-30.9. |
| Magične stijene d.o.o. | 1.1.-30.9. | 1.1.-30.9. |
| Palme turizam d.o.o. | 1.1.-30.9. | 1.1.-30.9. |
| Pogača Babin Kuk d.o.o. | 1.1.-30.9. | 1.1.-30.9. |
| Bugenvilia d.o.o. | 1.1.-30.9. | 1.1.-30.9. |
| Puntižela d.o.o. | 1.1.-30.9. | 1.1.-30.9. |
Quarterly financial report TFI-POD
| Tax number (MB): | 3474771 | |||
|---|---|---|---|---|
| Company registration number (MBS): |
040020883 | |||
| Personal identification number (OIB): |
36201212847 | |||
| Issuing company: | Valamar Riviera d.d. | |||
| Postal code and place | 52440 | Poreč | ||
| Street and house number: | Stancija Kaligari 1 | |||
| E-mail address: | [email protected] | |||
| Internet address: | www.valamar-riviera.com | |||
| Municipality/city code and name: | 348 | Poreč | ||
| Number of employees: |
||||
| County code and name: | 18 | Istarska | (period end) | 3.869 |
| NKD code: | 5510 | |||
| Consolidated report: | NO | |||
| Companies of the consolidation subject (according to IFRS): |
Seat: | MB: | ||
| Bookkeeping service: | ||||
| Contact person: | Sopta Anka | |||
| (only surname and name) | ||||
| Telephone: | 052/408 188 | Telefaks: | 052/408 110 | |
| E-mail address: | [email protected] | |||
| Family name and name: | Kukurin Željko, Čižmek Marko | |||
| (person authorized to represent the company) | ||||
Documents disclosed:
(Balance Sheet, Income Statement, Cash Flow Statement, Statement of Changes in Equity and notes to financial statements)
Management Interim Report
Declaration of the persons responsible for preparing the issuer's statements
L.S. (signature of the person authorized to represent the company)
| Position | AOP | Previous period | Current period |
|---|---|---|---|
| 1 | 2 | 3 | 4 |
| ASSETS | |||
| A) RECEIVABELS FOR SUBSCRIBED NOT PAID CAPITAL | 001 | ||
| B) NON-CURRENT ASSETS (003+010+020+029+033) | 002 | 3.171.672.610 | 3.371.987.285 |
| I. INTANGIBLE ASSETS (004 to 009) | 003 | 9.202.261 | 16.448.949 |
| 1. Expenditure for development | 004 | ||
| 2. Concessions, patents, licenses, trademarks, service marks, software and other rights | 005 | 9.090.495 | 9.051.511 |
| 3. Goodwill | 006 | ||
| 4. Advances for purchase of intangible assets | 007 | ||
| 5. Intangible assets in progress | 008 | 111.766 | 7.397.438 |
| 6. Other intangible assets | 009 | ||
| II. PROPERTY, PLANT AND EQUIPMENT (011 to 019) | 010 | 2.379.794.741 | 2.804.807.046 |
| 1. Land | 011 | 519.577.779 | 592.402.633 |
| 2. Buildings | 012 | 1.525.902.691 | 1.726.625.987 |
| 3. Plant and equipement | 013 | 189.682.352 | 182.672.608 |
| 4. Tools, working inventory and transportation assets | 014 | 63.877.369 | 68.715.100 |
| 5. Biological assets | 015 | ||
| 6. Advances for purchase of tangible assets | 016 | 5.072.180 | 2.620.538 |
| 7. Tangible assets in progress | 017 | 32.557.369 | 187.803.731 |
| 8. Other tangible assets | 018 | 24.663.310 | 22.768.051 |
| 9. Investment in real-estate | 019 | 18.461.691 | 21.198.398 |
| III. NON-CURRENT FINANCIAL ASSETS (021 to 028) | 020 | 625.876.740 | 389.804.720 |
| 1. Share in related parties | 021 | 584.753.048 | 384.792.488 |
| 2. Loans to related parties | 022 | ||
| 3. Participating interests (shares) | 023 | 140.000 | 140.000 |
| 4. Loans to companies with participating interest | 024 | ||
| 5. Investments in securities | 025 | 40.983.692 | 4.545.999 |
| 6. Loans, deposits, etc. | 026 | 326.233 | |
| 7. Other non-current financial assets | 027 | ||
| 8. Equity-accounted investments | 028 | ||
| IV. RECEIVABLES (030 to 032) | 029 | 136.460.510 | 136.240.082 |
| 1. Receivables from related parties | 030 | 135.815.357 | 135.815.357 |
| 2. Receivables arising from sales on credit | 031 | 286.116 | 248.298 |
| 3. Other receivables | 032 | 359.037 | 176.427 |
| V. DEFERRED TAX ASSET | 033 | 20.338.358 | 24.686.488 |
| C) CURRENT ASSETS (035+043+050+058) | 034 | 363.445.425 | 787.305.503 |
| I. INVENTORIES (036 to 042) | 035 | 9.604.766 | 11.729.394 |
| 1. Raw materials and supplies | 036 | 8.810.975 | 11.252.065 |
| 2. Production in progress | 037 | ||
| 3. Finished products | 038 | ||
| 4. Merchandise | 039 | 48.797 | 477.329 |
| 5. Advances for inventories | 040 | ||
| 6. Long term assets held for sale | 041 | 744.994 | |
| 7. Biological assets | 042 | ||
| II. RECEIVABLES (044 to 049) | 043 | 51.857.599 | 126.497.630 |
| 1. Receivables from related parties | 044 | 29.181.921 | 8.954.641 |
| 2. Receivables from end-customers | 045 | 12.765.099 | 106.028.575 |
| 3. Receivables from participating parties | 046 | ||
| 4. Receivables from employees and members of the company | 047 | 485.286 | 2.903.724 |
| 5. Receivables from government and other institutions | 048 | 7.009.354 | 3.562.803 |
| 6. Other receivables | 049 | 2.415.939 | 5.047.887 |
| III. CURRENT FINANCIAL ASSETS (051 to 057) | 050 | 185.980 | 1.421.003 |
| 1. Share in related parties | 051 | ||
| 2. Loans to related parties | 052 | 20.300 | 23.800 |
| 3. Participating interests (shares) | 053 | ||
| 4. Loans to companies with participating interest | 054 | ||
| 5. Investments in securities | 055 | ||
| 6. Loans, deposits, etc. | 056 | 24.845 | 702.869 |
| 7. Other financial assets | 057 | 140.835 | 694.334 |
| IV. CASH AND CASH EQUIVALENTS | 058 | 301.797.080 | 647.657.476 |
| D) PREPAYMENTS AND ACCRUED INCOME | 059 | 20.594.349 | 72.179.389 |
| E) TOTAL ASSETS (001+002+034+059) | 060 | 3.555.712.384 | 4.231.472.177 |
| F) OFF BALANCE SHEET ITEMS | 061 | 54.717.679 | 54.657.377 |
| Position | AOP | Previous period | Current period |
|---|---|---|---|
| 1 | 2 | 3 | 4 |
| EQUITY AND LIABILITIES | |||
| A) ISSUED CAPITAL AND RESERVES (063+064+065+071+072+075+078) | 062 | 2.088.581.493 | 2.481.552.245 |
| I. SUBSCRIBED SHARE CAPITAL | 063 | 1.672.021.210 | 1.672.021.210 |
| II. CAPITAL RESERVES | 064 | 109.139 | 3.573.938 |
| III.RESERVES FROM PROFIT (066+067-068+069+070) | 065 | 67.203.861 | 85.417.585 |
| 1. Legal reserves | 066 | 61.906.040 | 67.198.750 |
| 2. Reserve for own shares | 067 | 34.344.407 | 44.815.284 |
| 3. Treasury shares and shares (deductible items) | 068 | 29.046.586 | 36.125.572 |
| 4. Statutory reserves | 069 | ||
| 5. Other reserves | 070 | 9.529.123 | |
| IV. REVALUATION RESERVES | 071 | 31.431.842 | 407.047 |
| V. RETAINED EARNINGS OR LOSS CARRIED FORWARD (073-074) | 072 | 211.961.240 | 229.875.817 |
| 1. Retained earnings | 073 | 211.961.240 | 229.875.817 |
| 2. Loss carried forward | 074 | ||
| VI. NET PROFIT OR LOSS FOR THE PERIOD (076-077) | 075 | 105.854.201 | 490.256.648 |
| 1. Net profit for the period | 076 | 105.854.201 | 490.256.648 |
| 2. Net loss for the period | 077 | ||
| VII. MINORITY INTEREST | 078 | ||
| B) PROVISIONS (080 to 082) | 079 | 0 | 0 |
| 1. Provisions for pensions, severance pay and similar liabilities | 080 | ||
| 2. Provisions for tax liabilities | 081 | ||
| 3. Other provisions | 082 | ||
| C) NON-CURRENT LIABILITIES (084 to 092) | 083 | 1.164.439.231 | 1.398.387.020 |
| 1. Liabilites to related parties | 084 | ||
| 2. Liabilities for loans, deposits, etc. | 085 | ||
| 3. Liabilities to banks and other financial institutions | 086 | 1.158.888.007 | 1.375.425.530 |
| 4. Liabilities for advances | 087 | ||
| 5. Trade payables | 088 | ||
| 6. Commitments on securities | 089 | ||
| 7. Liabilities to companies with participating interest | 090 | ||
| 8. Other non-current liabilities | 091 | 2.833.086 | 3.001.480 |
| 9. Deferred tax liabilities | 092 | 2.718.138 | 19.960.010 |
| D) CURRENT LIABILITIES (094 to 105) | 093 | 205.346.633 | 233.118.850 |
| 1. Liabilites to related parties | 094 | 204.906 | |
| 2. Liabilities for loans, deposits, etc. | 095 | ||
| 3. Liabilities to banks and other financial institutions | 096 | 125.355.698 | 33.503.447 |
| 4. Liabilities for advances | 097 | 12.944.972 | 65.821.284 |
| 5. Trade payables | 098 | 43.376.126 | 75.136.136 |
| 6. Commitments on securities | 099 | ||
| 7. Liabilities to companies with participating interest | 100 | ||
| 8. Liabilities to emloyees | 101 | 14.943.850 | 27.308.308 |
| 9. Taxes, contributions and similar liabilities | 102 | 6.643.162 | 28.729.034 |
| 10. Liabilities arising from share in the result | 103 | 59.985 | |
| 11. Liabilities arising from non-current assets held for sale | 104 | ||
| 12. Other current liabilities | 105 | 1.877.919 | 2.560.656 |
| E) ACCRUED EXPENSES AND DEFERRED INCOME | 106 | 97.345.027 | 118.414.062 |
| F) TOTAL EQUITY AND LIABILITIES (062+079+083+093+106) | 107 | 3.555.712.384 | 4.231.472.177 |
| G) OFF BALANCE SHEET ITEMS | 108 | 54.717.679 | 54.657.377 |
| ADDITION TO BALANCE SHEET (only for consolidated financial statements) | |||
| A) ISSUED CAPITAL AND RESERVES | |||
| 1. Attributable to majority owners | 109 | ||
| 2. Attributable to minority interest | 110 |
| Position | AOP | Previous period | Current period | ||
|---|---|---|---|---|---|
| Cummulative | Quarter | Cummulative | Quarter | ||
| 1 | 2 | 3 | 4 | 5 | 6 |
| I. OPERATING INCOME (112 to 113) | 111 | 1.138.070.146 | 785.508.942 | 1.388.401.414 | 959.447.075 |
| 1. Sales revenues | 112 | 1.121.544.736 | 781.520.197 | 1.368.292.186 | 951.746.394 |
| 2. Other operating revenues | 113 | 16.525.410 | 3.988.745 | 20.109.228 | 7.700.681 |
| II. OPERATING COSTS | 114 | 813.405.270 | 373.914.184 | 937.164.842 | 466.448.165 |
| (115+116+120+124+125+126+129+130) | |||||
| 1. Change in inventories of work in progress | 115 | ||||
| 2. Material expenses (117 to 119) | 116 | 342.866.342 | 180.818.535 | 377.176.173 | 217.275.569 |
| a) Costs of raw materials | 117 | 177.433.748 | 97.318.441 | 206.303.849 | 115.834.590 |
| b) Cost of goods sold | 118 | 1.366.167 | 978.622 | 2.235.915 | 1.670.877 |
| c) Other material expenses | 119 | 164.066.427 | 82.521.472 | 168.636.409 | 99.770.102 |
| 3. Employee benefits expenses (121 to 123) | 120 | 225.247.725 | 103.567.784 | 283.614.136 | 142.428.457 |
| a) Net salaries | 121 | 135.531.519 | 62.677.534 | 178.485.660 | 92.471.119 |
| b) Tax and contributions from salary expenses | 122 | 57.489.763 | 26.122.567 | 67.203.991 | 32.169.764 |
| c) Contributions on salary | 123 | 32.226.443 | 14.767.683 | 37.924.485 | 17.787.574 |
| 4. Depreciation and amortisation | 124 | 160.891.728 | 53.752.557 | 180.248.254 | 61.964.245 |
| 5. Other expenses | 125 | 80.855.686 | 34.569.465 | 88.369.594 | 38.670.084 |
| 6. Write down of assets (127+128) | 126 | 711.709 | 475.902 | 271.483 | 229.733 |
| a) non-current assets (except financial assets) | 127 | ||||
| b) current assets (except financial assets) | 128 | 711.709 | 475.902 | 271.483 | 229.733 |
| 7. Provisions | 129 | ||||
| 8. Other operating costs | 130 | 2.832.080 | 729.941 | 7.485.202 | 5.880.077 |
| III. FINANCIAL INCOME (132 to 136) | 131 | 55.925.940 | 15.305.944 | 78.723.787 | 9.448.512 |
| 1. Interest, foreign exchange differences, dividends and similar income from related parties |
132 | 26.181.223 | 2.143.519 | ||
| 2. Interest, foreign exchange differences, dividends and similar income from third parties |
133 | 24.320.929 | 12.013.275 | 33.262.560 | 6.435.539 |
| 3. Income from investments in associates and joint ventures | 134 | ||||
| 4. Unrealised gains (income) from financial assets | 135 | 4.059.944 | 706.427 | 8.150.742 | 2.277.091 |
| 5. Other financial income | 136 | 1.363.844 | 442.723 | 37.310.485 | 735.882 |
| IV. FINANCIAL EXPENSES (138 to 141) | 137 | 58.573.629 | 18.708.111 | 39.703.711 | 13.781.350 |
| 1. Interest, foreign exchange differences, dividends and similar expenses from related parties |
138 | ||||
| 2. Interest, foreign exchange differences, dividends and similar expenses from third parties |
139 | 53.692.933 | 15.856.944 | 29.911.940 | 9.545.680 |
| 3. Unrealised losses (expenses) from financial assets | 140 | 4.450.709 | 2.778.931 | 7.293.756 | 2.367.168 |
| 4. Other financial expenses | 141 | 429.987 | 72.236 | 2.498.015 | 1.868.502 |
| V. SHARE OF PROFIT FROM ASSOCIATED COMPANIES | 142 | ||||
| VI. SHARE OF LOSS FROM ASSOCIATED COMPANIES | 143 | ||||
| VII. EXTRAORDINARY - OTHER INCOME | 144 | ||||
| VIII. EXTRAORDINARY - OTHER EXPENSES | 145 | ||||
| IX. TOTAL INCOME (111+131+142+144) | 146 | 1.193.996.086 | 800.814.886 | 1.467.125.201 | 968.895.587 |
| X. TOTAL EXPENSES (114+137+143+145) | 147 | 871.978.899 | 392.622.295 | 976.868.553 | 480.229.515 |
| XI. PROFIT OR LOSS BEFORE TAXES (146-147) | 148 | 322.017.187 | 408.192.591 | 490.256.648 | 488.666.072 |
| 1. Profit before taxes (146-147) | 149 | 322.017.187 | 408.192.591 | 490.256.648 | 488.666.072 |
| 2. Loss before taxes (147-146) | 150 | 0 | 0 | 0 | 0 |
| XII. TAXATION | 151 | ||||
| XIII. PROFIT OR LOSS FOR THE PERIOD (148-151) | 152 | 322.017.187 | 408.192.591 | 490.256.648 | 488.666.072 |
| 1. Profit for the period (149-151) | 153 | 322.017.187 | 408.192.591 | 490.256.648 | 488.666.072 |
| 2. Loss for the period (151-148) | 154 | 0 | 0 | 0 | 0 |
Company: Valamar Riviera d.d.
| Position | AOP | Previous period | Current period | ||
|---|---|---|---|---|---|
| Cummulative | Quarter | Cummulative | Quarter | ||
| 1 | 2 | 3 | 4 | 5 | 6 |
| XIV. PROFIT OR LOSS FOR THE PERIOD | |||||
|---|---|---|---|---|---|
| 1. Attributable to majority owners | 155 | 322.017.187 | 408.192.591 | 490.256.648 | 488.666.072 |
| 2. Attributable to minority interest | 156 |
| I. PROFIT OR LOSS FOR THE PERIOD (=152) | 157 | 322.017.187 | 408.192.591 | 490.256.648 | 488.666.072 |
|---|---|---|---|---|---|
| II. OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAXES (159 to 165) |
158 | 1.812.222 | 1.812.222 | -33.645.125 | -354.020 |
| 1. Exchange differences from international settlement | 159 | ||||
| 2. Changes in revaluation reserves of long-term tangible and intangible assets |
160 | ||||
| 3. Profit or loss from re-evaluation of financial assets held for sale |
161 | 1.812.222 | 1.812.222 | -33.645.125 | -354.020 |
| 4. Profit or loss from cash flow hedging | 162 | ||||
| 5. Profit or loss from hedging of foreign investments | 163 | ||||
| 6. Share of other comprehensive income/loss from associ atied companies |
164 | ||||
| 7. Actuarial gains/losses from defined benefit plans | 165 | ||||
| III. TAXATION OF OTHER COMPREHENSIVE INCOME FOR THE PERIOD |
166 | 362.444 | 362.444 | -2.620.331 | -67.640 |
| IV. NET OTHER COMPREHENSIVE INCOME FOR THE PERIOD (158-166) |
167 | 1.449.778 | 1.449.778 | -31.024.794 | -286.380 |
| V. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (157+167) |
168 | 323.466.965 | 409.642.369 | 459.231.854 | 488.379.692 |
| VI. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD |
|||
|---|---|---|---|
| 1. Attributable to majority owners | 169 | ||
| 2. Attributable to minority interest | 170 | ||
| 1 2 3 4 CASH FLOWS FROM OPERATING ACTIVITIES 1. Profit before tax 001 322.017.188 490.256.648 002 160.891.728 180.248.254 2. Depreciation and amortisation 3. Increase of current liabilities 003 56.206.620 149.529.137 4. Decrease of current receivables 004 5. Decrease of inventories 005 479.851 6. Other cash flow increases 006 57.989 271.483 I. Total increase of cash flow from operating activities (001 to 006) 007 539.653.376 820.305.522 1. Decrease of current liabilities 008 2. Increase of current receivables 009 59.450.857 122.882.122 3. Increase of inventories 010 1.968.192 4. Other cash flow decreases 011 40.656.941 55.932.209 II. Total decrease of cash flow from operating activities (008 to 011) 012 100.107.798 180.782.523 A1) NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (007-012) 013 439.545.578 639.522.999 A2) NET DECREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007) 014 0 0 CASH FLOW FROM INVESTING ACTIVITIES 1. Proceeds from sale of non-current assets 015 2. Proceeds from sale of non-current financial assets 016 39.024.277 3. Interest received 017 4. Dividend received 018 5. Other proceeds from investing activities 019 11.598.486 III. Total cash inflows from investing activities (015 to 019) 020 0 50.622.763 1. Purchase of non-current assets 021 282.284.800 240.549.742 2. Purchase of non-current financial assets 022 3. Other cash outflows from investing activities 023 178.778.806 5.740.298 IV. Total cash outflows from investing activities (021 to 023) 024 461.063.606 246.290.040 B1) NET INCREASE OF CASH FLOW FROM INVESTING ACTIVITIES (020-024) 025 0 0 B2) NET DECREASE OF CASH FLOW FROM INVESTING ACTIVITIES (024-020) 026 461.063.606 195.667.277 CASH FLOW FROM FINANCING ACTIVITIES 1. Proceeds from issue of equity securities and debt securities 027 2. Proceeds from loans and borrowings 028 201.816.261 118.422.204 3. Other proceeds from financing activities 029 1.449.778 V. Total cash inflows from financing activities (027 to 029) 030 203.266.039 118.422.204 1. Repayment of loans and bonds 031 143.394.366 2. Dividends paid 032 68.922.466 37.330.521 3. Repayment of finance lease 033 4. Purchase of treasury shares 034 12.268.002 35.692.643 5. Other cash outflows from financing activities 035 9.251.135 VI. Total cash outflows from financing activities (031 to 035) 036 90.441.603 216.417.530 C1) NET INCREASE OF CASH FLOW FROM FINANCING ACTIVITIES (030-036) 037 112.824.436 0 C2) NET DECREASE OF CASH FLOW FROM FINANCING ACTIVITIES (036-030) 038 0 97.995.326 Total increases of cash flows (013-014+025-026+037-038) 039 91.306.408 345.860.396 Total decreases of cash flows (014-013+026-025+038-037) 040 0 0 Cash and cash equivalents at the beginning of period 041 166.188.610 301.797.080 Increase of cash and cash equivalents 042 91.306.408 345.860.396 Decrease of cash and cash equivalents 043 0 Cash and cash equivalents at the end of period 044 257.495.018 647.657.476 |
Position | AOP | Previous period | Current period |
|---|---|---|---|---|
| Position | AOP | Previous year | Current year |
|---|---|---|---|
| 1 | 2 | 3 | 4 |
| 1. Subscribed share capital | 001 | 1.672.021.210 | 1.672.021.210 |
| 2. Capital reserves | 002 | 109.139 | 3.573.938 |
| 3. Reserves from profit | 003 | 67.203.861 | 85.417.585 |
| 4. Retained earnings or loss carried forward | 004 | 211.961.240 | 229.875.817 |
| 5. Net profit or loss for the period | 005 | 105.854.201 | 490.256.648 |
| 6. Revaluation of tangible assets | 006 | ||
| 7. Revaluation of intangible assets | 007 | ||
| 8. Revaluation of available for sale assets | 008 | 31.431.842 | 407.047 |
| 9. Other revaluation | 009 | ||
| 10. Total equity and reserves (AOP 001 to 009) | 010 | 2.088.581.493 | 2.481.552.245 |
| 11. Foreign exchenge differences from foreign investments | 011 | ||
| 12. Current and deferred taxes | 012 | ||
| 13. Cash flow hedge | 013 | ||
| 14. Change of accounting policies | 014 | ||
| 15. Correction of significant mistakes of prior period | 015 | ||
| 16. Other changes | 016 | ||
| 17.Total increase or decrease of equity (AOP 011 to 016) | 017 | 0 | 0 |
| 17 a. Attributable to majority owners | 018 | ||
| 17 b. Attributable to minority interest | 019 |
Valamar Riviera d.d. Stancija Kaligari 1 52440 Poreč, Croatia T +385 (52) 408 002 F +385 (52) 451 608 E [email protected] W www.valamar.com
Investor Relations Stancija Kaligari 1 52440 Poreč, Croatia T +385 (52) 408 159 F +385 (52) 451 608 E [email protected] W www.valamar-riviera.com
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