AD Plastik d.d.

Quarterly Report • Oct 27, 2016

2016

MANAGEMENT INTERIM REPORT

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

B

C

D

Contents

Management Interim Report of AD Plastik Group and the Company AD Plastik d.d. Solin for the period 01.01. - 30.09.2016 A

	Sales, EBITDA and net profit	5
	Comment by Marinko Došen, President of the Management Board	6
	Financial results for the first nine months	7
	Key indicators of AD Plastik Group 01.01. - 30.09.2016	8
	Operating revenue per sales markets of AD Plastik Group, without affiliated companies	8
	AD Plastik Group with consolidation of the corresponding ownership parts in affiliated companies	10
B	Financial statement of AD Plastik Group	11
	Balance sheet	13
	Profit and loss account	15
	Cash flow (indirect method)	17
	Statement of changes in equity	18
C	Financial statement of the Company AD Plastik	19
	Balance sheet	21
	Profit and loss account	23
	Cash flow (indirect method)	25
	Statement of changes in equity	26
D	Management's statement of responsibility	27

A

4

C

Management Interim Report

of AD Plastik Group and the Company AD Plastik d.d. Solin for the period 01.01. - 30.09.2016

Sales, EBITDA and net profit	5
Comment by Marinko Došen, President of the Management Board	6
Financial results for the first six months	7
Key indicators of AD Plastik Group 01.01. - 30.09.2016	8
Operating revenue per sales markets of AD Plastik Group, without affiliated companies	8
AD Plastik Group with consolidation of the corresponding ownership parts in affiliated companies	10

C

Sales, EBITDA and net profit

C

Comment by Marinko Došen, President of the Management Board

A business environment that is becoming more dynamic requires us to introduce continuous changes and adjustments of business systems. Our plans are market-oriented, we follow the trends and specifics of the industry in which we operate, but also we are equally persistent in achieving our vision.

In the first nine months we have achieved operating revenue in the amount of 736 million kunas at the level of the Group, which was 4.9% lower than the revenue realized in the same period last year.

Sales in the European market is slightly lower due to somewhat smaller orders from the customer Hella, but revenue is almost at the level of last year. Revenue in the Russian market decreased by 10.7%, but this is less than the overall decline in car sales in the first nine months in Russia. Although car sales in the Russian market are still decreasing, market is gradually stabilizing.

In spite of that, our cost efficiency is continually improving, and the fact is that our operating expenses declined significantly more than revenue. It is not surprising, therefore, that EBITDA and EBITDA margin have been increasing steadily. As I have repeatedly stated, an optimization of business efficiency, especially on the market of the Russian Federation, and reduction of total liabilities are on one of the key goals in this year.

I particularly want to emphasize the new deals for Fiat and Volkswagen which have been agreed in the past few months, whose realization is planned in the next year. This way we once again confirmed our quality because in today's automotive world a delivery of results with the expected quality within the clearly set deadlines is what makes the difference. New deals prove that we have set a good foundation for further development and growth of our business.

Marinko Došen President of the Management Board

C

Financial results for the first nine months

AD Plastik Group, which consists of

• • AD Plastik d.d. Croatia,
• • ADP d.o.o. Serbia,
• • AD Plastik d.o.o. Slovenia,
• • AO AD Plastik, Vintay, Russia,
• • ZAO AD Plastik Kaluga, Russia

(hereinafter: AD Plastik Group) in the first nine months of 2016 recorded operating revenue in the amount of 736 million kunas which is by 4.9% less compared to the same period last year.

Operating revenue of AD Plastik d.d. decreased by 1.3%. Car sales on the Russian market in the first nine months of 2016 decreased by 14.4% compared to the same period last year, while revenue from the Russian market at the level of AD Plastik Group decreased by 10.7%. In the observed period AD Plastik d.d. generated a stable revenue at the level similar to last year's level, but due to the fact that the sales revenue is generated only on foreign markets, a weakening of the euro exchange rate had a negative impact on revenue expressed in kunas. Your needs. Our drive. MANAGEMENT INTERIM REPORT FOR THE FIRST NINE MONTHS OF 2016 7MANAGEMENT REPORT

The decline in operating expenses of the Group in the observed period is higher than the decline in operating revenue, which resulted in realized EBITDA in the amount of 99.4 million kunas compared to 87.7 million kunas realized in the same period of the previous year. Cost efficiency improvement has increased the EBITDA margin from 11.3% to 13.5%.

In the first nine months of 2016 AD Plastik Group achieved operating revenue in the amount of 31.2 million kunas, which is 3.5% less than the net profit in the same period last year, and this is mainly a consequence of the realization of foreign exchange differences from comprehensive income.

C

Key indicators of business of AD Plastik Group

Indicators	3Q 2015	3Q 2016	Index 3Q16/3Q15
Operating revenue (in thsd. of kuna)	773,593	736,053	95.15
Sales revenue (in thsd. of kuna)	761,698	715,849	93.98
NFD (in thsd. of kuna)	429,719	389,942	90.74
EBITDA (in thsd. of kuna)	87,705	99,374	113.30
NFD/EBITDA last 4 quarters	4.26	3.08
EBITDA margin	11.34%	13.50%
Net profit margin	4.18%	4.23%

Financial Position of AD Plastik Group

There has been a continuing trend of improving financial position of AD Plastik Group and AD Plastik d.d. which started in 2015. On September 30, 2016 compared to September 30, 2015 a credit debt of the Group decreased by an additional 28.2 million kunas, while accounts payable compared to December 31, 2015 decreased by 38.6 million kunas, indicating a positive cash flow and good liquidity of the company. The debt ratio decreased from 0.56 to 0.51.

The ADPL-R-A share price increased from 98.46 kunas on December 31, 2015 to 136.50 kunas on September 30, 2016, indicating a 38.6% growth in the observed nine months period.

As announced in the statement for the first half of 2016 a foreign exchange differences from comprehensive income are realized within the position of financial expenses which reflected the net results, while the position of Share in profits from associates shows a share in profits from Euro Auto Plastic Systems s.r.l., Mioveni, Romania.

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

• • Operating revenue of AD Plastik Group on the market of EU and Serbia decreased by 2.9%
• • Operating revenue of AD Plastik Group in Russia decreased by 10.7%

EU and Serbian markets

Solin, Zagreb, Mladenovac

Three-quarters of the total revenue of the AD Plastik Group are realized on the market of the EU and Serbia through the sites in Solin and Zagreb in Croatia and the site in Mladenovac in Serbia. In the first nine months of 2016 the operating revenue on the EU and Serbian market decreased by 2.9% compared to the same period last year as a result of somewhat smaller orders for the customer Hella, with the aforementioned exchange rate effect when expressing revenue in kunas.

In the third quarter of 2016 AD Plastik d.d. won a nomination for the production of grab handles for the four models of Volkswagen vehicles (Golf Variant, Golf Sportsvan, Touran and Tiguan). Serial production at the plant in Solin will start in 2017 with deliveries to the plants in Germany (Wolfsburg and Sachsen) and Mexico (Puebla). The expected revenue from this deal amounts to 10 million euros during four years.

Russian market (subsidiaries)

A total production volume of the companies of AD Plastik Group which operate on the market of Russian Federation is sold on the Russian market. In the first nine months of 2016 Russian car market recorded a sales decline of 14.4% compared to the same period last year. In the reporting period, operating revenue of subsidiaries of AD Plastik Group in Russia decreased by 10.7% compared to the same period last year. Vintay (Togliatti), Kaluga

It is important to note that the decrease in operating revenue of Russian companies is lower than the planned one, and a monthly adjustment of selling prices to the euro to Russian ruble exchange rate, as well as continuous operating costs savings positively affect the amount of EBITDA.

A

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

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

With the aim of presenting a clearer picture of business of AD Plastik Group, we have created an abbreviated consolidated profit and loss account for the first nine months of 2016 with consolidated profit and loss account of affiliated companies Euro Auto Plastic Systems s.r.l. Miovieni, Romania (50% of ownership of AD Plastik d.d.), Faurecia ADP, Luga, Russia (40% of ownership AD Plastik d.d.), and Center for research and development of automotive industry Croatia (24% of ownership AD Plastik d.d.).

Profit and loss account of AD Plastik Group

FADP Holding, Center for research and develop ment of automotive industry	we have created an abbreviated consolidated profit and loss account for the first nine months of 2016 with consolidated profit and loss account of affiliat ed companies Euro Auto Plastic Systems s.r.l. Miovieni, Romania (50% of own ership of AD Plastik d.d.), Faurecia ADP, Luga, Russia (40% of ownership AD Plastik d.d.), and Center for research and development of automotive industry Croatia (24% of ownership AD Plastik d.d.).				MANAGEMENT REPORT
	Profit and loss account of AD Plastik Group with consolidation of the corresponding ownership parts in affiliated compa nies for the first nine months in 2015 and 2016 in thsd. of kuna				B AD PLASTIK GROUP
	Positions	3Q 2015	3Q 2016	Index
	OPERATING REVENUE	1,103,442	1,050,822	95
	OPERATING EXPENSES	1,039,644	966,359	93	C
	Material costs	653,908	599,178	92
	Staff costs	178,435	172,731	97	AD PLASTIK d.d.
	Amortization	63,892	64,713	101
	Other costs	143,408	129,736	90
	FINANCIAL REVENUE	95,902	24,274	25
	FINANCIAL EXPENSES	121,170	69,925	58	D
	TOTAL REVENUE	1,199,344	1,075,096	90
	TOTAL EXPENSES	1,160,814	1,036,284	89
	Profit before tax	38,530	38,812	101
	Profit tax	6,230	7,658	123
	PROFIT OF THE PERIOD	32,300	31,155	96
	EBITDA	127,690	149,176	117
	Operating revenue of AD Plastik Group with consolidated corresponding part of ownership in affiliated companies has recorded a decrease of 5% compared to the same period of the last year. EBITDA in the same period recorded an increase of 17% compared to the same period of the last year and totaled 149.2 million kunas. Results of affiliated companies are included in the results of AD Plastik Group by equity method and these companies have no financial liabilities arising from credits to external entities, except the liabilities arising from credits ob tained from the owner.
Your needs. Our drive.	MANAGEMENT INTERIM REPORT FOR THE FIRST NINE MONTHS OF 2016				10

of AD Plastik Group

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

Appendix 1 Quarterly Financial Report, AD Plastik Group

01.01.2016. Reporting period:	to	30.09.2016.
----------------------------------	----	-------------

Quarterly Financial Report of the entrepreneur TFI-POD

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

ACONTENTS

Balance sheet as at 30.09.2016.

Taxpayer: AD Plastik Group

	Item	AOP ind.	Preceding period	Current period
	1	2	3	4
ASSETS
A	RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID	001
B	FIXED ASSETS (003+010+020+029+033)	002	1,005,948,798	930,413,509
	I. Intangible assets (004 up to 009)	003	133,591,715	122,387,209
	1 Development costs	004	80,546,532	94,322,937
	2 Concessions, patents, licenses, trademarks, softwares and other rights	005	3,564,101	3,300,340
	3 Goodwill	006	7,612,311	8,416,277
	4 Advances for purchase of intangible assets	007
	5 Intangible assets in preparation	008	38,230,588	16,316,796
	6 Other intangible assets	009	3,638,183	30,859
	II. Tangible assets (011 up to 019)	010	695,403,772	692,591,904
	1 Land	011	141,133,105	150,437,838
	2 Buildings	012	261,882,421	270,225,048
	3 Plants and machinery	013	266,826,200	250,027,784
	4 Tools, plant & office inventory, furniture & transport means	014	14,919,960	15,464,842
	5 Biological assets	015
	6 Payments on account for tangible assets	016	23,415	221,059
	7 Tangible assets in preparation	017	10,543,917	5,887,861
	8 Other tangible assets	018	74,754	327,472
	9 Investment in real estate	019
	III. Fixed financial assets (021 up to 028)	020	132,592,958	87,531,399
	1 Shares in affiliated undertakings	021
	2 Loans to affiliated undertakings	022
	3 Participating interests (shares)	023	86,507,627	74,849,490
	4 Given loans to companies in which exist participating interests	024	37,733,977	5,283,219
	5 Investments in securities	025	61,700	61,700
	6 Other loans, deposits etc	026	8,289,654	7,336,989
	7 Other fixed financial assets	027
	8 Investment stated in equity method	028
	IV. Receivables (030 up to 032)	029	14,175,985	15,644,548
	1 Receivables from associated undertakings	030
	2 Receivables from sales on credit	031
	3 Other receivables	032	14,175,985	15,644,548
	V. Deffered tax assets	033	30,184,368	12,258,450
C	CURRENT ASSETS (035+043+050+058)	034	294,238,847	330,571,766
	I. Inventory (036 up to 042)	035	97,786,225	101,888,570
	1 Materials and supplies	036	65,038,743	70,254,872
	2 Work in progress	037	4,263,670	5,957,952
	3 Finished goods	038	18,576,488	16,180,685
	4 Commercial goods	039	9,907,324	9,121,845
	5 Advances for inventories	040		373,217
	6 Long term assets held for sale 7 Biological assets	041 042
	II. Receivables (044 up to 049) 1 Receivables from associated undertakings	043	177,953,111	172,877,561
	2 Trade receivables	044 045	137,336,315	125,100,573
	3 Receivables from participating companies	046	6,408,483	12,169,775
	4 Receivables from employees and members of the business 5 Receivables from government and other institutions	047 048	382,197 10,182,444	664,040 12,376,206
	6 Other receivables	049	23,643,672	22,566,967
	III. Current financial assets (051 up to 057)	050	6,115,737	40,476,273
	1 Shares in affiliated undertakings	051
	2 Loans to affiliates	052
	3 Participating interests (shares)	053
	4 Given loans to companies in which exist participating interests	054		36,435,994
	5 Investments in to securities	055
	6 Other loans, deposits etc	056	6,115,737	4,040,279
	7 Other financial assets	057
	IV. Cash at bank and in hand	058	12,383,774	15,329,362
D	PREPAYMENT AND ACCRUED INCOME	059	45,189,479	74,238,176
E	TOTAL ASSETS (001+002+034+059)	060	1,345,377,124	1,335,223,451
F	OUT-OF-BALANCE ITEMS	061	29,591,225	32,909,281

B

Balance sheet as at 30.09.2016.

Taxpayer: AD Plastik Group

Item 1	AOP ind. 2	Preceding period 3	Current period 4
LIABILITIES
CAPITAL AND RESERVES (063+064+065+071+072+075+078) I. SUBSCRIBED SHARE CAPITAL	062 063	622,955,516 419,958,400	655,822,745 419,958,400
II. CAPITAL RESERVES	064	183,481,905	183,470,242
III. RESERVES FROM GAIN (066+067-068+069+070)	065	31,549,516	27,195,291
1 Legal reserves	066	6,139,440	6,135,429
2 Reserves for own shares	067	3,107,594	3,816,131
3 Own stocks and shares (deductible item)	068	3,107,594	3,816,131
4 Statutory reserves	069		4,312
5 Other reserves	070	25,410,076	21,055,550
IV. REVALUATION RESERVES	071	-72,895,692	-26,537,500
V. RETAINED EARNINGS OR LOSS BROUGHT FORWARD (073-074)	072	14,641,039	20,583,966
1 Retained earnings	073	14,641,039	20,583,966
2 Loss brought forward	074
VI. CURRENT YEAR PROFIT OR LOSS (076-077)	075	46,225,069	31,153,543
1 Current year profit	076	46,225,069	31,153,543
2 Current year loss	077
VII. MINOR INTEREST	078	-4,721	-1,197
PROVISIONS (080 up to 082)	079	9,459,516	10,350,012
1 Provisions for pensions, severance pay and similar obligations	080	1,724,443	1,724,443
2 Provisions for tax liabilities	081
3 Other provisions	082	7,735,073	8,625,569
LONG TERM LIABILITIES (084 up to 092)	083	298,864,762	283,010,192
1 Liabilities to related parties 2 Commitments for loans, deposits, etc	084 085
3 Liabilities to banks and other financial institutions	086	262,592,153	257,180,945
4 Liabilities for advances	087
5 Trade payables	088	28,487,988	25,829,247
6 Commitments on securities	089
7 Liabilities to companies in which are participating interests	090
8 Other long term liabilities	091
9 Deferred tax liabilities	092	7,784,621
SHORT TERM LIABILITIES (094 do 105)	093	396,477,901	345,463,405
1 Liabilities to related parties	094
2 Commitments for loans, deposits, etc	095	1,983,051
3 Liabilities to banks and other financial institutions	096	161,117,273	152,122,114
4 Liabilities for advances	097	23,613,360	26,335,285
5 Trade payables	098	180,510,796	144,544,935
6 Commitments on securities	099
7 Liabilities to companies in which are participating interests	100	896,374	734,577
8 Liabilities towards employees	101	9,898,976	9,699,418
9 Liabilities for taxes, contributions and other benefits	102	15,041,837	11,553,816
		27,856	27,856
10 Liabilities to share in the result	103
11 Amount based on fixed assets intended to sale	104
12 Other short-term liabilities	105	3,388,378	445,405
DEFERRED PAYMENT OF COSTS AND FUTURE INCOME	106	17,619,429	40,577,098
TOTAL LIABILITIES (062+079+083+093+106)	107	1,345,377,124	1,335,223,451
OUT-OF BALANCE ITEMS	108	29,591,225	32,909,281
ADDENDUM TO BALANCE SHEET( filled in by the entrepreneur compiling the consolidated annual financial statement)
CAPITAL AND RESERVES 1 Ascribed to the holders of the parent company capital	109	622,960,237	655,823,942

A	CAPITAL AND RESERVES
	1 Ascribed to the holders of the parent company capital	109	622,960,237	655,823,942
	2 Ascribed to minority interest	110	-4,721	-1,197

Profit and loss account Reporting period: 01.01.2016. to 30.09.2016.

Taxpayer: AD Plastik Group

Item	AOP	Preceding period		Current period
1	ind. 2	Cumulative 3	Quarter 4	Cumulative 5	Quarter 6
OPERATING TURNOVER (112+113)	111	773,592,775	248,728,796	736,052,956	223,871,541
1 Income from sales	112	761,697,877	243,884,677	715,848,835	219,718,088
2 Other operating income	113	11,894,898	4,844,119	20,204,121	4,153,453
OPERATING CHARGES (115+116+120+124+125+126+129+130)	114	740,511,718	242,010,616	693,906,540	219,258,182
1 Changes in the value of inventories of work in progress and finished goods	115	4,644,775	2,580,312	1,838,343	-1,113,150
2 Material charges (117 up to 119)	116	455,312,489	129,979,107	420,552,898	123,471,454
a Costs of raw materials and consumables	117	368,047,732	102,882,286	361,542,458	107,269,197
b Costs of sales	118	34,146,117	7,953,615	16,319,848	5,857,110
c Other external charges	119	53,118,640	19,143,205	42,690,592	10,345,147
3 Staff costs (121 up to 123)	120	134,951,436	45,166,986	128,641,261	44,048,175
a Salaries and wages	121	82,944,996	27,750,795	79,128,139	27,115,533
b Costs of taxes and social security	122	29,123,724	9,805,820	28,751,162	10,161,840
c Duties on wages	123	22,882,716	7,610,371	20,761,960	6,770,802
4 Depreciation	124	54,624,223	18,683,938	57,227,156	19,754,838
5 Other costs	125	83,707,742	43,473,209	74,478,734	30,048,607
6 Impairment (127+128)	126
a Fixed assets (excluding financial assets)	127
b Current assets (excluding financial assets)	128
7 Provisions	129
8 Other operating expenses	130	7,271,053	2,127,064	11,168,147	3,048,258
FINANCIAL INCOME (132 up to 136)	131	102,314,032	32,731,268	24,274,221	8,092,505
1 Interests, exchange rate difference, dividends with affiliates	132	73,549,827	26,905,289	6,541,367	3,582,079
2 Interests, exchange rate difference, dividends with non-affiliates	133	22,314,007	3,986,301	14,131,911	3,503,820
3 Part of income from affiliates and participated interests	134	6,450,198	1,839,678	3,600,943	1,006,606
4 Non-realized financial income	135
5 Other financial income	136
FINANCIAL CHARGES (138 up to 141)	137	122,832,991	41,967,299	62,759,755	17,507,332
1 Interests, exchange rate difference, dividends with affiliates	138	78,976,297	29,533,244	17,571,326	8,520,573
2 Interests, exch. rate difference, dividends with non-affiliates	139	43,540,131	12,438,442	45,188,429	8,986,759
3 Non-realized financial charges	140
4 Other financial charges	141	316,563	-4,387
SHARE OF PROFIT FROM ASSOCIATED COMPANIES	142	33,529,241	9,741,085	27,557,607	7,829,171
SHARE OF LOSS FROM ASSOCIATED COMPANIES	143	13,791,036	1,919,002
EXTRAORDINARY – OTHER INCOME	144
EXTRAORDINARY – OTHER CHARGES	145
TOTAL INCOME (111+131+142 + 144)	146	909,436,048	291,201,149	787,884,784	239,793,217
TOTAL CHARGES (114+137+143 + 145)	147	877,135,745	285,896,917	756,666,295	236,765,514
PROFIT OR LOSS BEFORE TAXATION (146-147)	148	32,300,303	5,304,232	31,218,489	3,027,703
1 Profit before taxation (146-147)	149	32,300,303	5,304,232	31,218,489	3,027,703
2 Loss before taxation (147-146)	150
PROFIT TAX	151		11,265	63,518	1,493
PROFIT OR LOSS FOR THE PERIOD (148-151)	152	32,300,303	5,292,967	31,154,971	3,026,210
1 PROFIT FOR THE PERIOD (149-151) 2 LOSS FOR THE PERIOD (151-148)	153	32,300,303	5,292,967	31,154,971	3,026,210
	154

Profit and loss account Reporting period: 01.01.2016. to 30.09.2016.

Taxpayer: AD Plastik Group

Cumulative Quarter Cumulative Quarter ind. 1 2 3 4 5 6 ADDENDUM TO ATS (filled in by the entrepreneur compiling the consolidated annual financial statement) PROFIT OR LOSS FOR THE CURRENT PERIOD 1 Attributable to equity holders 155 32,300,209 5,296,353 31,153,543 3,026,044 2 Attributable to minority interests 156 94 -3,386 1,428 166
Report for other comprehensive income (only for the taxpayer applying IFRS)
PROFIT OR LOSS FOR THE CURRENT PERIOD (= 152) 157 32,300,303 5,292,967 31,154,971 3,026,210
OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAXATION
158 -34,057,633 -65,514,191 23,432,513 -5,300,261 (159 up to 165)
1 Exchange differences on translation of foreign operations 159 -34,057,633 -68,062,583 23,295,119 -3,608,711
2 Movements in revaluation reserves of fixed and intangible assets 160 2,548,392 136,204 -1,692,741
3 Profit or loss from revaluation of financial assets available for sale 161
4 Gains or losses on effective cash flow protection 162
5 Gains or losses on effective hedge of a net investment abroad 163
6 Share of other comprehensive income / loss of associated com 164 panies
7 Actuarial gains / losses on defined benefit plans 165
TAX ON OTHER COMPREHENSIVE INCOME FOR THE CURRENT 166 -6,115,692 -12,407,512 4,607,456 -1,049,171 PERIOD
OTHER COMPREHENSIVE NET PROFIT OR LOSS (158-166) 167 -27,941,941 -53,106,679 18,825,058 -4,251,090
OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD 168 4,358,362 -47,813,712 49,980,029 -1,224,880 (157+167)
ADDENDUM to Report for other comprehensive income (filled in by the entrepreneur compiling the consolidated annual financial statement)
OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD
1 Attributable to equity holders 169 4,364,601 -47,797,703 49,974,906 -1,223,674 2 Attributable to minority interests 170 -6,239 -16,009 5,123 -1,207

VI.	OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD
	1 Attributable to equity holders	169	4,364,601	-47,797,703	49,974,906	-1,223,674
	2 Attributable to minority interests	170	-6,239	-16,009	5,123	-1,207

CONTENTS

Cash flow statement indirect method Reporting period: 01.01.2016. to 30.09.2016.

Taxpayer: AD Plastik Group

1
	2	3	4
CASH FLOW FROM OPERATING ACTIVITIES
1 Profit before taxation	001	32,300,303	31,218,489
2 Depreciation	002	54,624,223	57,227,156
3 Increase of current liabilities	003
4 Decrease of current receivables	004	6,161,377
5 Decrease in stocks	005
6 Other increase of cash flow	006	7,886,222	79,600,229
I. Total increase of cash flow from operating activities (001 - 006)	007	100,972,125	168,045,873
1 Decrease of current liabilities	008	57,442,576	30,582,642
2 Increase of current receivables	009		32,392,366
3 Increase in stocks	010	3,231,849	4,102,345
4 Other decrease of cash flow	011		36,382,840
II. Total decrease of cash flow from operating activities (008 – 011)	012	60,674,425	103,460,192
A1 NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	013	40,297,700	64,585,681
A2 NET DECREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	014
CASH FLOWS FROM INVESTMENT ACTIVITIES
1 Cash inflows from sale of fixed intangible and tangible assets	015		8,102,410
2 Cash inflows from sale of ownership and debt instruments	016		128,500
3 Cash inflows from interest	017	772,241
4 Cash inflows from dividends	018	31,326,060	37,333,051
5 Other cash inflows from investment activities	019		2,175,000
III. Total cash inflows from investment activities (015-019)	020	32,098,301	47,738,961
1 Cash expenditures for purchase of fixed tangible and intangible assets	021	6,456,066	34,085,374
2 Cash expenditures for acquisition of ownership and debt instruments	022
		37,439,501	1,432,234
3 Other cash expenditures from investment activities	023
IV. Total cash expenditures from investment activities (021-023)	024	43,895,567	35,517,607
	025 026	11,797,266	12,221,354
B1 NET INCREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (020-024) B2 NET DECREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (024-020) CASH FLOW FROM FINANCIAL ACTIVITIES 1 Cash inflows from issuing ownership and debt financial instruments 2 Cash inflows from credit principal, debentures, loans and other borrowings	027 028	79,740,094	92,631,654
3 Other inflows from financial activities	029	22,201,025
V. Total cash inflows from financial activities (027-029)	030	101,941,119	92,631,654
1 Cash expenditures for the payment of credit principal and debentures	031	130,938,828	113,560,823
2 Cash expenditures for the payment of dividends	032		50,044,304
3 Cash expenditures for financial lease	033		2,887,974
4 Cash expenditures for repurchase of own shares	034
5 Other cash expenditures from financial activities	035
VI. Total cash expenditures from financial activities (031-035)	036	130,938,828	166,493,101
C1 NET INCREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (030-036)	037
C2 NET DECREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (036-030)	038	28,997,709	73,861,448
Total cash flow increase (013-014+025-026+037-038)	039		2,945,588
Total cash flow decrease (014-013+026-025+038-037)	040	497,275
Cash and cash equivalents at the beginning of the period	041	7,805,591	12,383,774
Cash and cash equivalents increase	042		2,945,588
Cash and cash equivalents decrease Cash and cash equivalents at the end of the period	043 044	497,275 7,308,316	15,329,362

Statement of changes in equity Reporting period: 01.01.2016. to 30.09.2016.

Taxpayer: AD Plastik Group

	Item 1		AOP ind. 2	Preceding year 3	Current period 4	A
	1 Subscribed capital		001	419,958,400	419,958,400
	2 Capital reserves		002	183,512,936	183,470,242
	3 Reserves from profit		003	31,658,088	27,195,291
	4 Retained profit or loss carried over		004	22,103,250	20,583,966	MANAGEMENT REPORT
	5 Current year profit or loss		005	32,300,209	31,153,543
	6 Revalorisation of fixed material assets		006		21,169,495
	7 Revalorisation of intangible assets		007
	8 Revalorisation of financial assets available for sale		008
	9 Other revalorisation		009	-64,040,404	-47,706,995
	10 Total equity and reserves (AOP 001-009)		010	625,492,479	655,823,942	B
	11 Exchange rate variations from net investments into foreign business operations		011	-34,057,633	23,295,119
	12 Current and deferred taxes (part)		012	6,115,692	-4,607,456
	13 Cash flow protection		013			AD PLASTIK GROUP
	14 Changes in bookkeeping policies		014
	15 Correction of significant mistakes from the previous period		015
	16 Other changes to capital		016		14,179,566
	17 Total equity increase or decrease (AOP 011 - 016)		017	-27,941,941	32,867,229	C
17 a 17 b	Ascribed to holders of the holders company capital Ascribed to minority interest		018 019	625,496,171 -3,692	32,863,705 3,524	AD PLASTIK d.d.
						D
	Your needs. Our drive.	MANAGEMENT INTERIM REPORT FOR THE FIRST NINE MONTHS OF 2016				18

Financial statement

of the Company AD Plastik d.d.

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

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

01.01.2016. Reporting period: to	30.09.2016.
----------------------------------------	-------------

Quarterly Financial Report of the entrepreneur TFI-POD

Register number (MB):		03440494
Entity register number (MBS):		060007090
Personal identification number (PIN):		48351740621
Issuing company:		AD PLASTIK d.d.
Post code and place:	21210	Solin
Street and house number:		Matoševa 8
E-mail address:			informacije@adplastik.hr
Internet address:		www.adplastik.hr
Municipality/city code and name:	406	Solin
County code and name:	17	Splitsko-dalmatinska
No. of employees (at the end of the reporting period):		1203
Consolidated report:	NO	NCA code:	2932
Names of consolidation subjects (according to IMSF):	Seat:		REG. NO.:
Bookkeeping service: Contact person: (only the name and surname of the contact person to be entered) Telephone:	Sandra Capan 021/206-651
Fax:	021/275-651
E-mail address:		sandra.capan@adplastik.hr
Name and surname: (person authorised for representation)	Sanja Biočić
Documentation for publishing: 1.	Financial statements (balance sheet, profit and loss statement, cash flow statement, changes in equity and notes to financial statements)
2. Interim report
3.	Statement of the person responsible for compiling financial statements

• changes in equity and notes to financial statements)
• 1. Interim report
• 1. Statement of the person responsible for compiling financial statements

A

CONTENTS

as at 30.09.2016. Balance sheet Taxpayer: AD Plastik d.d.

	Item	AOP ind.	Preceding period	Current period
	1	2	3	4
ASSETS
A	RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID	001
B	FIXED ASSETS (003+010+020+029+033)	002	1,022,628,683	925,256,408
	I. Intangible assets (004 up to 009)	003	99,185,975	90,697,400
	1 Development costs	004	63,178,571	75,878,952
	2 Concessions, patents, licenses, trademarks, softwares and other rights	005	1,403,157	1,211,891
	3 Goodwill	006
	4 Advances for purchase of intangible assets	007
	5 Intangible assets in preparation	008	34,604,247	13,606,557
	6 Other intangible assets	009
	II. Tangible assets (011 up to 019)	010	511,441,985	501,200,045
	1 Land	011	139,976,599	147,246,299
	2 Buildings	012	193,773,750	192,206,598
	3 Plants and machinery	013	157,835,416	145,034,979
	4 Tools, plant & office inventory, furniture & transport means	014	12,045,278	11,936,601
	5 Biological assets	015
	6 Payments on account for tangible assets	016
	7 Tangible assets in preparation	017	7,810,942	4,775,569
	8 Other tangible assets	018
	9 Investment in real estate	019
	III. Fixed financial assets (021 up to 028)	020	187,263,126	155,561,806
	1 Shares in affiliated undertakings	021	44,376,245	44,376,245
	2 Loans to affiliated undertakings	022	75,023,792	76,724,499
	3 Participating interests (shares)	023	21,779,205	21,779,155
	4 Given loans to companies in which exist participating interests	024	37,733,977	5,283,219
	5 Investments in securities	025	61,700	61,700
	6 Other loans, deposits etc	026	8,288,207	7,336,989
	7 Other fixed financial assets	027
	8 Investment stated in equity method	028
	IV. Receivables (030 up to 032)	029	212,619,383	171,387,091
	1 Receivables from associated undertakings	030	198,443,398	155,742,543
	2 Receivables from sales on credit	031
	3 Other receivables	032	14,175,985	15,644,548
	V. Deffered tax assets	033	12,118,214	6,410,066
C	CURRENT ASSETS (035+043+050+058)	034	213,790,616	270,611,840
	I. Inventory (036 up to 042)	035	50,539,344	52,245,763
	1 Materials and supplies	036	35,086,842	35,724,614
	2 Work in progress	037	3,416,353	3,861,736
	3 Finished goods	038	9,812,364	9,597,399
	4 Commercial goods	039	2,223,785	3,062,014
	5 Advances for inventories 6 Long term assets held for sale	040 041
	7 Biological assets	042
	II. Receivables (044 up to 049) 1 Receivables from associated undertakings	043 044	142,268,895 11,253,092	159,320,428 42,755,233
	2 Trade receivables	045	101,416,624	82,099,199
	3 Receivables from participating companies	046	4,883,018	10,532,501
	4 Receivables from employees and members of the business	047	302,213	423,404
	5 Receivables from government and other institutions	048	5,254,298	5,748,304
	6 Other receivables	049	19,159,650	17,761,787
	III. Current financial assets (051 up to 057)	050	17,568,690	50,000,233
	1 Shares in affiliated undertakings	051
	2 Loans to affiliates	052	13,368,967	13,146,076
	3 Participating interests (shares)	053
	4 Given loans to companies in which exist participating interests	054		36,435,994
	5 Investments in to securities	055
	6 Other loans, deposits etc	056	4,199,723	418,164
	7 Other financial assets	057
	IV. Cash at bank and in hand	058	3,413,687	9,045,416
D	PREPAYMENT AND ACCRUED INCOME	059	36,922,560	64,078,939
E	TOTAL ASSETS (001+002+034+059)	060	1,273,341,859	1,259,947,188
F	OUT-OF-BALANCE ITEMS	061	4,592,542	4,884,454

A

Balance sheet as at 30.09.2016.

Taxpayer: AD Plastik d.d.

Item 1	AOP ind. 2	Preceding period 3	Current period 4
LIABILITIES
CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	644,971,641	652,843,057
I. SUBSCRIBED SHARE CAPITAL	063	419,958,400	419,958,400
II. CAPITAL RESERVES	064	183,075,797	183,075,797
III. RESERVES FROM GAIN (066+067-068+069+070)	065	31,538,928	27,184,402
1 Legal reserves	066	6,128,852	6,128,852
2 Reserves for own shares	067	3,107,594	3,816,131
3 Own stocks and shares (deductible item)	068	3,107,594	3,816,131
4 Statutory reserves	069
5 Other reserves	070	25,410,076	21,055,550
IV. REVALUATION RESERVES	071	-34,876,517	-12,646,668
V. RETAINED EARNINGS OR LOSS BROUGHT FORWARD (073-074)	072	12,724,371
1 Retained earnings	073	12,724,371
2 Loss brought forward	074
VI. CURRENT YEAR PROFIT OR LOSS (076-077)	075	32,550,662	35,271,126
1 Current year profit	076	32,550,662	35,271,126
2 Current year loss	077
VII. MINOR INTEREST	078
PROVISIONS (080 up to 082)	079	8,914,024	9,344,822
1 Provisions for pensions, severance pay and similar obligations	080	1,724,443	1,724,443
2 Provisions for tax liabilities	081
3 Other provisions LONG TERM LIABILITIES (084 up to 092)	082 083	7,189,581 265,493,900	7,620,379 262,626,081
1 Liabilities to related parties	084
2 Commitments for loans, deposits, etc	085
3 Liabilities to banks and other financial institutions	086	246,080,090	243,500,151
4 Liabilities for advances	087
5 Trade payables	088	19,263,124	19,125,930
6 Commitments on securities	089
7 Liabilities to companies in which are participating interests	090
8 Other long term liabilities	091
9 Deferred tax liabilities	092	150,686
SHORT TERM LIABILITIES (094 do 105)	093	338,674,802	300,785,827
1 Liabilities to related parties	094	17,875,305	17,363,683
2 Commitments for loans, deposits, etc	095
3 Liabilities to banks and other financial institutions	096	141,457,550	143,255,039
4 Liabilities for advances	097	6,826,368	9,764,039
5 Trade payables	098	155,575,261	118,833,441
6 Commitments on securities	099
7 Liabilities to companies in which are participating interests	100	7,808
8 Liabilities towards employees	101	8,045,263	7,542,918
9 Liabilities for taxes, contributions and other benefits	102	6,190,380	3,959,815
10 Liabilities to share in the result	103	27,856	27,856
11 Amount based on fixed assets intended to sale	104
12 Other short-term liabilities	105	2,669,011	39,036
DEFERRED PAYMENT OF COSTS AND FUTURE INCOME	106	15,287,492	34,347,401
TOTAL LIABILITIES (062+079+083+093+106)	107	1,273,341,859	1,259,947,188
OUT-OF BALANCE ITEMS ADDENDUM TO BALANCE SHEET( filled in by the entrepreneur compiling the consolidated annual financial statement)	108	4,592,542	4,884,454
CAPITAL AND RESERVES 1 Ascribed to the holders of the parent company capital 2 Ascribed to minority interest Note 1: Appendix to Balance sheet fill companies who make consolidated financial statements.	109 110

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

Profit and loss account Reporting period: 01.01.2016. to 30.09.2016.

Taxpayer: AD Plastik Group

Item 1	AOP ind. 2	Preceding period Cumulative 3	Quarter 4	Current period Cumulative 5	Quarter 6
OPERATING TURNOVER (112+113)	111	578,042,373	186,910,770	570,240,479	172,265,189
1 Income from sales	112	569,446,370	182,384,862	556,250,283	162,283,442
2 Other operating income	113	8,596,004	4,525,909	13,990,196	9,981,748
OPERATING CHARGES (115+116+120+124+125+126+129+130)	114	553,810,856	182,424,375	548,072,938	174,674,325
1 Changes in the value of inventories of work in progress and finished goods	115	3,601,158	2,639,429	-230,417	-1,829,387
2 Material charges (117 up to 119)	116	356,849,065	101,258,522	345,162,423	99,175,066
a Costs of raw materials and consumables	117	276,343,390	74,591,270	265,582,903	74,358,819
b Costs of sales	118	40,997,050	13,553,634	46,207,063	15,781,432
c Other external charges	119	39,508,625	13,113,618	33,372,457	9,034,814
3 Staff costs (121 up to 123)	120	95,329,683	32,286,476	95,139,096	32,157,145
a Salaries and wages	121	57,197,810	19,371,886	56,567,907	18,778,736
b Costs of taxes and social security	122	23,832,421	8,071,619	24,476,684	8,731,196
c Duties on wages	123	14,299,452	4,842,971	14,094,505	4,647,213
4 Depreciation	124	31,166,624	10,045,865	36,540,605	12,520,306
5 Other costs	125	63,510,960	34,869,486	62,911,464	29,861,409
6 Impairment (127+128)	126
a fixed assets (excluding financial assets)	127
b current assets (excluding financial assets)	128
7 Provisions	129
8 Other operating expenses	130	3,353,365	1,324,596	8,549,767	2,789,787
FINANCIAL INCOME (132 up to 136)	131	58,353,471	5,469,568	54,515,165	22,810,225
1 Interests, exchange rate difference, dividends with affiliates	132	4,251,333	1,297,014	3,464,509	1,039,052
2 Interests, exchange rate difference, dividends with non-affiliates	133	5,727,021	2,335,147	8,261,711	2,122,595
3 Part of income from affiliates and participated interests	134	48,375,116	1,837,406	42,788,945	19,648,578
4 Non-realized financial income	135
5 Other financial income	136
FINANCIAL CHARGES (138 up to 141)	137	60,098,366	6,618,325	41,411,581	7,452,720
1 Interests, exchange rate difference, dividends with affiliates	138	246,524	175,501	1,644,469	249,980
2 Interests, exchange rate difference, dividends with non-affiliates	139	22,353,554	6,442,824	39,767,112	7,202,740
3 Non-realized financial charges	140	37,498,288
4 Other financial charges	141
SHARE OF PROFIT FROM ASSOCIATED COMPANIES	142
SHARE OF LOSS FROM ASSOCIATED COMPANIES	143
EXTRAORDINARY – OTHER INCOME	144
EXTRAORDINARY – OTHER CHARGES	145
TOTAL INCOME (111+131+142 + 144)	146	636,395,844	192,380,338	624,755,644	195,075,415
TOTAL CHARGES (114+137+143 + 145)	147	613,909,221	189,042,699	589,484,518	182,127,045
PROFIT OR LOSS BEFORE TAXATION (146-147)	148	22,486,622	3,337,638	35,271,126	12,948,369
1 Profit before taxation (146-147)	149	22,486,622	3,337,638	35,271,126	12,948,369
2 Loss before taxation (147-146)	150
PROFIT TAX	151		11,265
PROFIT OR LOSS FOR THE PERIOD (148-151)	152	22,486,622	3,326,374	35,271,126	12,948,369
1 PROFIT FOR THE PERIOD (149-151)	153	22,486,622	3,326,374	35,271,126	12,948,369
2 LOSS FOR THE PERIOD (151-148)	154

Profit and loss account Reporting period: 01.01.2016. to 30.09.2016.

Taxpayer: AD Plastik Group

Item 1 ADDENDUM TO ATS (filled in by the entrepreneur compiling the consolidated annual financial statement) PROFIT OR LOSS FOR THE CURRENT PERIOD 1 Attributable to equity holders 2 Attributable to minority interests Report for other comprehensive income (only for the taxpayer applying IFRS) PROFIT OR LOSS FOR THE CURRENT PERIOD (= 152) OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAXATION (159 up to 165) 1 Exchange differences on translation of foreign operations 2 Movements in revaluation reserves of fixed and intangible assets 3 Profit or loss from revaluation of financial assets available for sale 4 Gains or losses on effective cash flow protection 5 Gains or losses on effective hedge of a net investment abroad 6 Share of other comprehensive income / loss of associated com panies 7 Actuarial gains / losses on defined benefit plans TAX ON OTHER COMPREHENSIVE INCOME FOR THE CURRENT PERIOD OTHER COMPREHENSIVE NET PROFIT OR LOSS (158-166) OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD (157+167) ADDENDUM to Report for other comprehensive income (filled in by the entrepreneur compiling the consolidated annual financial statement) OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD 1 Attributable to equity holders 2 Attributable to minority interests	ind. 2 155 156 157 158 159 160 161 162 163 164	Cumulative 3 22,486,622 -7,981,749 -7,981,749	Quarter 4 3,326,374 -13,637,906 -13,637,906	Cumulative 5 35,271,126 2,731,600 2,731,600	Quarter 6 12,948,369 -284,032
					-284,032
	165
	166	-1,596,350	-2,727,581	546,320	-56,806
	167	-6,385,399	-10,910,325	2,185,280	-227,226
	168	16,101,223	-7,583,952	37,456,406	12,721,144
	169
Your needs. Our drive.				MANAGEMENT INTERIM REPORT FOR THE FIRST NINE MONTHS OF 2016

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

CONTENTS

Cash flow statement indirect method Reporting period: 01.01.2016. to 30.09.2016.

Taxpayer: AD Plastik Group

1	AOP ind. 2	Preceding period 3	Current period 4
CASH FLOW FROM OPERATING ACTIVITIES
1 Profit before taxation	001	22,486,622	35,271,126
2 Depreciation	002	31,166,624	36,540,605
3 Increase of current liabilities	003
4 Decrease of current receivables	004
5 Decrease in stocks	005	5,586,223
6 Other increase of cash flow	006	14,750,467	49,457,002
I. Total increase of cash flow from operating activities (001 - 006)	007	73,989,936	121,268,732
1 Decrease of current liabilities	008	55,909,631	28,521,316
2 Increase of current receivables	009	32,080,950	12,061,031
3 Increase in stocks	010		1,706,419
4 Other decrease of cash flow	011	1,596,350	34,416,004
II. Total decrease of cash flow from operating activities (008 – 011)	012	89,586,931	76,704,770
A1 NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	013		44,563,962
A2 NET DECREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	014	15,596,995
CASH FLOWS FROM INVESTMENT ACTIVITIES
1 Cash inflows from sale of fixed intangible and tangible assets	015		3,531,596
2 Cash inflows from sale of ownership and debt instruments	016		128,500
3 Cash inflows from interest	017	772,241	930,965
4 Cash inflows from dividends	018	31,326,060	37,333,051
5 Other cash inflows from investment activities	019		2,175,000
III. Total cash inflows from investment activities (015-019)	020	32,098,301	44,099,112
1 Cash expenditures for purchase of fixed tangible and intangible assets	021	26,661,353	25,309,134
2 Cash expenditures for acquisition of ownership and debt instruments	022
3 Other cash expenditures from investment activities	023	6,912,806
IV. Total cash expenditures from investment activities (021-023)	024	33,574,159	25,309,134
B1 NET INCREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (020-024) B2 NET DECREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (024-020)	025 026	1,475,858	18,789,978
CASH FLOW FROM FINANCIAL ACTIVITIES
1 Cash inflows from issuing ownership and debt financial instruments	027
2 Cash inflows from credit principal, debentures, loans and other borrowings	028	80,235,387	88,489,465
	029	37,474,238
	030	117,709,625	88,489,465
3 Other inflows from financial activities V. Total cash inflows from financial activities (027-029) 1 Cash expenditures for the payment of credit principal and debentures	031	100,204,877	93,279,399
	032		50,044,304
2 Cash expenditures for the payment of dividends 3 Cash expenditures for financial lease	033		2,887,974
4 Cash expenditures for repurchase of own shares	034
	035
	036	100,204,877	146,211,677
	037	17,504,748
	038		57,722,211
5 Other cash expenditures from financial activities VI. Total cash expenditures from financial activities (031-035) C1 NET INCREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (030-036) C2 NET DECREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (036-030) Total cash flow increase (013-014+025-026+037-038)	039	431,895	5,631,729
Total cash flow decrease (014-013+026-025+038-037)	040
Cash and cash equivalents at the beginning of the period	041	1,800,522	3,413,687
Cash and cash equivalents increase	042	431,895	5,631,729
Cash and cash equivalents decrease Cash and cash equivalents at the end of the period	043 044	2,232,417	9,045,416

Statement of changes in equity

Reporting period: 01.01.2016. to 30.09.2016. Taxpayer: AD Plastik Group

Item 1		AOP ind. 2	Preceding year 3	Current period 4	A
1 Subscribed capital		001	419,958,400	419,958,400
2 Capital reserves		002	183,075,797	183,075,797
3 Reserves from profit		003	31,650,928	27,184,402
4 Retained profit or loss carried over		004	12,724,371		MANAGEMENT REPORT
5 Current year profit or loss		005	22,486,623	35,271,126
6 Revalorisation of fixed material assets		006
7 Revalorisation of intangible assets		007
8 Revalorisation of financial assets available for sale		008
9 Other revalorisation		009	-29,013,204	-12,646,668
10 Total equity and reserves (AOP 001-009)		010	640,882,915	652,843,057	B
11 Exchange rate variations from net investments into foreign business operations		011	-7,981,749	2,731,600
12 Current and deferred taxes (part)		012	1,596,350	-546,320	AD PLASTIK GROUP
13 Cash flow protection		013
14 Changes in bookkeeping policies		014
15 Correction of significant mistakes from the previous period		015
16 Other changes to capital		016		5,686,136
17 Total equity increase or decrease (AOP 011 - 016)		017	-6,385,399	7,871,416	C
17 a Ascribed to holders of the holders company capital 17 b Ascribed to minority interest		018 019			AD PLASTIK d.d.
					D
Your needs. Our drive.	MANAGEMENT INTERIM REPORT FOR THE FIRST NINE MONTHS OF 2016				26

D Management's statement of responsibility

C

D

Solin, October 25, 2016

Management's statement of responsibility

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

The consolidated financial statements of AD Plastik Group and the financial statements of the Company AD Plastik d.d. for the period from January 1 to September 30, 2016, give a complete and true review of the assets and liabilities, profit and loss, financial position and business activities of the issuers and companies included in the consolidation as a whole. Your needs. Our drive. MANAGEMENT INTERIM REPORT FOR THE FIRST NINE MONTHS OF 2016 28MANAGEMENT REPORT

The management report for the period until September 30, 2016, contains an accurate and true display of the development and results of the business activities of the Company with a description of the most significant risks and uncertainties to which the Company is exposed.

President of the Management Board

Management Board Member

Marinko Došen

Sanja Biočić

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

The capital stock in the amount of HRK 419,958,400 was paid in full. AD Plastik issued a total of 4,199,584 of ordinary shares, in nominal amount of HRK 100. President of the Management Board: Marinko Došen Management Board members: Katija Klepo, Sanja Biočić , Mladen Peroš President of the Supervisory Board: Dmitrij Leonidovič Drandin

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SOLIN, OCTOBER 2016 WWW.ADPLASTIK.HR