AD Plastik d.d.

Quarterly Report • Feb 17, 2017

2016

ANNUAL REPORT

BY MANAGEMENT OF AD PLASTIK GROUP AND THE COMPANY AD PLASTIK D.D. SOLIN

TEMPORARY UNAUDITED FINANCIAL STATEMENTS

Contents

Management Report of AD Plastik Group and the Company AD Plastik d.d. Solin for the period 01.01.2016 - 31.12.2016 A

D	Management's statement of responsibility	29
	Statement of changes in equity	28
	Cash flow (indirect method)	27
	Profit and loss account	25
	Balance sheet	23
C	Financial statement of the company AD Plastik	21
	Statement of changes in equity	20
	Cash flow (indirect method)	19
	Profit and loss account	17
	Balance sheet	15
B	Financial statement of AD Plastik Group	13
	AD Plastik Group with consolidation of the corresponding ownership parts in affiliated companies	12
	Sales revenue per sales markets of AD Plastik Group, without affiliated companies	10
	Financial Position of AD Plastik Group	9
	Key indicators of AD Plastik Group for 2016	9
	Financial results in 2016	7
	Commentary by Marinko Došen, President of the Management Board	6
	Net profit, EBITDA and operating revenue of AD Plastik Group	5

A

4

Management Report

of AD Plastik Group and the Company AD Plastik d.d. Solin

5
6
7
9
9
10
12

Net profit, EBITDA and operating revenue of AD Plastik Group

A

MANAGEMENT REPORT AD PLASTIK GROUP

CONTENTS

Commentary by Marinko Došen, President of the Management Board

The automotive industry is undeniably and incessantly changing. It is therefore certain that all car manufacturers and their suppliers have to observe transformations that such changes bring forth. Last year we have closed a couple of very important new deals and we are continuing in the same direction. We are recognized by the investing public thanks to successfully realized negotiations and new contracts, in addition to the overall improvement of our business and frequent, transparent and open communication with investors, as well as comprehensive reports on business operation.

Our results for 2016 were at the level of the previous year and despite revenues having decreased by 8.6% compared to the previous year, our efficiency and financial stability have steadily improved. We have generated an operating revenue of 940.5 million kunas, which - with the AD Plastik Group net profit of 48.1 million kunas, compared to 2015 - represents an increase of 4.1%. Our operating expenses decreased significantly more than our operating revenue was reduced, which resulted in a 15.7% increase of EBITDA compared to the previous year, namely 132.9 million kunas in 2016.

Sales on the European market were slightly lower due to the smaller number of orders placed by our client Hella and a lower amount of revenue generated through our project activities. A drop in revenue observed in Russia was primarily caused by exchange rate fluctuations, rather than a decline in sales. However, Russia can see the light at the end of the tunnel. Although everybody associated with the automotive industry knows the past year has not been easy, the market in Russia is slowly stabilizing. All forecasts for this year are suggesting an increase in car sales in Russia, which is an opportunity that AD Plastik will certainly be ready to grasp.

We are ambitiously creating a dynamic business environment that aims at continuously developing and growing the AD Plastik Group. We began this year fairly busy, harbouring ambition and enthusiasm, and I believe that this was possible primarily due to a sound foundation we laid in the previous period.

An increase in sales revenue of a minimum of 6%, along with an increase in EBITDA and net margin, remains our main objective for 2017. We will continue our activities regarding a further reduction in the Group's loan liabilities and optimization of cash flows. Our key objectives for 2017 include a growth on existing and new markets, a further increase in business efficiency and, ultimately, ensuring a further increase in the market value of the company, i.e. the value of shares.

Marinko Došen President of the Management Board

Financial results in 2016

In the reporting period AD Plastik Group consists of

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

(hereinafter: AD Plastik Group)

AD Plastik Group has achieved enviable business results for 2016, thus continuing last year's trend of successful conduct of company business. We are pleased to announce good operating results of AD Plastik d.d. and AD Plastik Group for the year 2016.

AD Plastik Group has in the reporting period recorded a slightly lower operating revenue of 940.5 million kunas, which represents a 8.6% decrease compared to the previous year, while AD Plastik d.d. generated an operating revenue in the amount of 722.6 million kunas, i.e. 6.2% less than in the previous year. A decrease in realization was primarily caused by the smaller number of orders placed by our client Hella and a slightly lower volume of revenue generated through our project activities. In addition, we must emphasise the negative im-

Financial results in 2016

pact of foreign exchange movements on the amount of our operating revenue expressed in kuna, especially euro and Russian rouble. Due to the Croatian monetary policy of maintaining exchange rate stability of the kuna against the euro, throughout 2016 the euro was exposed to appreciation pressures of the kuna. Such weakening of the euro weakened the position of operating revenue and overall AD Plastik d.d. business results brought about by our strong focus on export. The total revenue of AD Plastik Group was, in addition to the euro exchange rate, significantly affected by the twofold Russian rouble exchange rate in 2016. An above average value of rouble had a negative effect on the amount of operating revenue, while the strengthening of the rouble at the end of the year had a positive impact on business results in the form of reduced foreign exchange losses.

Significantly lower operating expenses in the reporting period were the result of a series of activities undertaken in order to improve business efficiency and rationalize production processes at all AD Plastik Group sites.

The decline in operating expenses of AD Plastik Group in 2016, which was greater than the decline in operating revenue, resulted in the EBITDA in the amount of 132.9 million kunas, which is 15.7% more than in the previous year. Compared to the EBITDA margin of 11.2% in 2015, we have achieved a higher EBITDA margin of 14.1% by improving the cost efficiency of AD Plastik Group. Net profit of AD Plastik Group increased by 4.1% in 2016 compared to the previous year and amounted to 48.1 million kunas, while the realized net profit margin rose to 5.12% compared to 4.49% realized in 2015.

14.1%

EBITDA margin

48.1 mkn

Net profit

Key indicators of AD Plastik Group for 2016

Indicators - Group	2015	2016	Index
Operating revenue (in thsd. of kuna)	1,028,491	940,517	91.45
Sales revenue (in thsd. of kuna)	1,002,364	922,139	92.00
NFD (in thsd. of kuna)	408,519	373,421	91.41
EBITDA (in thsd. of kuna)	114,880	132,951	115.73
NFD/EBITDA	3.56	2.81
EBITDA margin	11.17%	14.14%
Net profit margin	4.49%	5.12%

Financial Position of AD Plastik Group

Credit debt -38 mkn

40.2%

Share price growth

There has been a continuing trend of improving financial position of AD Plastik Group and AD Plastik d.d. which started in 2015. On December 31, 2016 a credit debt of the Group decreased by 38 million kunas compared to the same date last year. During the above- mentioned period, accounts payable decreased by 46.2 million kunas. The debt ratio decreased from 0.52 to 0.45, and all indicators point to a positive cash flow and good liquidity of AD Plastik Group.

The results were stabilizing at higher levels throughout 2016. Despite a small decline in revenues, we have left our investors with the feeling of security while earning trust in the Management Board and values of AD Plastik, as previously reported. In 2016 we paid out a dividend of 12 kunas per share. The price of the share ADPL-R-A went up by 40.2%, for which AD Plastik d.d. won the Zagreb Stock Exchange prize for the share with the highest growth. The price of the share on 31 December 2016 amounted to 138.00 kunas, while it amounted to 98.46 kunas on the same day the previous year.

We are pleased to say that we have fulfilled one of the strategic goals that we have set in the previous year, namely, exiting the JV Agreement with Faurecia

Sale of 40% stake OOO Faurecia ADP, Luga, Russia Automotiv Holding s.a.s., Francuska. AD Plastik d.d and Faurecia Automotive Holdings s.a.s.u. have signed the Agreement of Purchase and Sale of Shares according to which AD Plastik sells and Faurecia purchases 278.136 shares (40%) of the company Faurecia ADP Holding s.a.s., France, which is a hundred percent owner of the company OOO Faurecia ADP in Luga. Pursuant to said Agreement, the transfer of shares is executed on in December 2016. Given the above mentioned, Faurecia has become the sole owner of the company Faurecia ADP Holding s.a.s and, therefore, the company FADP in Luga, Russian Federation. The aforementioned sale of shares has no impact on the operating results of the AD Plastik Group and plans on the Russian Federation market.

Cooperation among AD Plastik and Faurecia continues in JV company Euro Auto Plastic Systems s.r.l. in Romania without any changes.

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

• • Revenue of AD Plastik Group on the market of EU and Serbia decreased by 8.2%
• • Revenue of AD Plastik Group in Russia decreased by 9.6%

The ratio of revenue generated by the Group on the EU and Serbian market and the Russian market remains unchanged in 2016 compared to 2015.

EU and Serbian markets

Solin, Zagreb, Mladenovac

Vintai (Togliatti), Kaluga

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 2016 the operating revenue on the EU and Serbian market decreased by 8.2% compared to the previous year, primarily due to the reasons mentioned above - exchange rate effect when expressing revenue in kuna, lower revenue generated through project activities and smaller orders placed by our client Hella. It is important to emphasize that the revenue generated through the project Edison, which has the greatest impact on the revenue of AD Plastik d.d., in the reporting period, is higher than the revenue generated through this project in the previous period, despite the aforementioned euro exchange rate.

In the past year we focused on development in the area of products with greater strategic potential in order to strengthen our offer and expand the portfolio of customers and products. Goals are achieved through the new deals closed for the next multi-year period with the customers Maserati, Fiat, Volkswagen and Renault, with a total value of over 20 million euros annually in the years of full production. New deals closed

Russian market (subsidiaries)

AD Plastik Group companies operating on the Russian Federation market place the total of their production on the Russian market. Last year the sales of cars on the Russian market decreased by 11% compared to the previous year, whereby the decline in sales significantly slowed down in the last quarter. November was the first month after seven consecutive quarters in which we did not record a decline. Operating revenue of AD Plastik Group subsidiaries in Russia has in the observed period decreased by 9.6% compared to the previous year, which was for the most part a consequence of the kuna exchange rate, rather than the decline in sales themselves.

However, it should be noted that the lower utilization of production capacities and sales still has not stabilized at higher levels. With regular adjustments to selling prices prompted by exchange rate fluctuations and a strive to improve cost efficiency, Russian companies have in the observed period operated quite successfully. We are therefore satisfied with the profit they realized. Medium and long-term movements of the Russian economy are currently following a trend of growth dynamics. Moreover, the rouble exchange rate is moving towards its stabilization. Current 2017 projections indicate a growth of the Russian economy and the strengthening of the Russian rouble associated with the price of crude oil barrel and forecasts about an increase in crude oil prices. Expectations indicate that the decline in car sales will stop and sales will increase by 4%.

ACONTENTS

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

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 2015 and 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.), and Center for research and development of automotive industry Croatia (24% of ownership AD Plastik d.d.).

Given that in 2016 the share in the company Faurecia ADP Holding s.a.s, France has been sold, the operating result of this company is not included in the abbreviated consolidated profit and loss account for 2016, and the impact of operations of this company in 2015 has been reclassified and shown within the position "Share of loss from associates" for comparison purposes.

Euro Auto Plastic Systems s.r.l.

Center for research and development of automotive industry Croatia

Positions	2015 kkn	2016 kkn	Index
OPERATING REVENUE	1,403,196	1,330,905	94.85
OPERATING EXPENSES	1,299,961	1,221,020	93.93
Material costs	818,017	745,127	91.09
Staff costs	221,638	218,480	98.58
Amortization	80,811	83,083	102.81
Other costs	179,495	174,330	97.12
FINANCIAL REVENUE	120,559	45,157	37.46
FINANCIAL EXPENSES	155,447	95,788	61.62
Share of loss from associates	10,934	0	0.00
TOTAL REVENUE	1,523,755	1,376,061	90.31
TOTAL EXPENSES	1,466,342	1,316,808	89.80
Profit before tax	57,413	59,253	103.20
Profit tax	11,190	11,126	99.43
PROFIT OF THE PERIOD	46,223	48,127	104.12
EBITDA	184,046	192,968	104.85

Operating revenue of AD Plastik Group with corresponding part of ownership in affiliated companies has recorded a decrease of 5.2% compared to the previous year. EBITDA in the same period recorded an increase of 4.8% compared to the previous year and totaled 192.9 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 obtained from the owner.

B Financial statement

of AD Plastik Group

Balance sheet	15
Profit and loss account	17
Cash flow (indirect method)	19
Statement of changes in equity	20

B

MANAGEMENT REPORT AD PLASTIK GROUP

A

CONTENTS

Appendix 1 Quarterly financial statement, AD Plastik Group

Quarterly financial statement 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):		2153
Consolidated report:	YES	NCA code:	2932
Names of consolidation subjects (according to IMSF):	Seat:		REG. NO.:
AD PLASTIK d.d.	Solin, Croatia		03440494
AO AD PLASTIK			Samara, Russian Federation 1036300221935
AD PLASTIK d.o.o.	Novo Mesto, Slovenia		1214985000
ZAO AD PLASTIK KALUGA		Kaluga, Russian Federation	1074710000320
ADP d.o.o.	Mladenovac, Serbia		20787538
Bookkeeping service:
Contact person:	Krešimir Jurun
(only the name and surname of the contact person to be entered)
Telephone:	021/206 663
Fax:	021/275 663
E-mail address:		kresimir.jurun@adplastik.hr
Name and surname:	Sanja Biočić
(person authorised for representation)

Documentation for publishing:

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

Place of the seal (signature of the person authorised for representation)

Balance sheet as at 31.12.2016., Taxpayer: AD Plastik Group

	Item	AOP ind.	Preceding year	Current year
	1	2	3	4
ASSETS
A	RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID	001
B	FIXED ASSETS (003+010+020+029+033)	002	1,005,948,798	929,170,866
	I. Intangible assets (004 up to 009)	003	133,591,715	128,366,787
	1 Development costs	004	80,546,532	90,790,955
	2 Concessions, patents, licenses, trademarks, softwares and other rights	005	3,564,101	1,502,654
	3 Goodwill	006	7,612,311	9,411,228
	4 Advances for purchase of intangible assets	007
	5 Intangible assets in preparation	008	38,230,588	25,005,698
	6 Other intangible assets	009	3,638,183	1,656,252
	II. Tangible assets (011 up to 019)	010	695,403,772	707,498,871
	1 Land	011	141,133,105	150,852,333
	2 Buildings	012	261,882,421	278,368,115
	3 Plants and machinery	013	266,826,200	250,624,271
	4 Tools, plant & office inventory, furniture & transport means	014	14,919,960	19,516,501
	5 Biological assets	015
	6 Payments on account for tangible assets	016	23,415	719,057
	7 Tangible assets in preparation	017	10,543,917	6,906,058
	8 Other tangible assets	018	74,754	512,536
	9 Investment in real estate	019
	III. Fixed financial assets (021 up to 028)	020	132,592,958	87,401,645
	1 Shares in affiliated undertakings	021
	2 Loans to affiliated undertakings	022
	3 Participating interests (shares)	023	86,507,627	82,440,349
	4 Given loans to companies in which exist participating interests	024	37,733,977
	5 Investments in securities	025	61,700	61,700
	6 Other loans, deposits etc	026	8,289,654	4,899,595
	7 Other fixed financial assets	027
	8 Investment stated in equity method	028
	IV. Receivables (030 up to 032)	029	14,175,985	94,700
	1 Receivables from associated undertakings	030
	2 Receivables from sales on credit	031
	3 Other receivables	032	14,175,985	94,700
	V. Deffered tax assets	033	30,184,368	5,808,863
C	CURRENT ASSETS (035+043+050+058)	034	294,238,847	352,261,291
	I. Inventory (036 up to 042)	035	97,786,225	108,211,503
	1 Materials and supplies	036	65,038,743	69,693,907
	2 Work in progress	037	4,263,670	5,380,829
	3 Finished goods	038	18,576,488	19,057,391
	4 Commercial goods	039	9,907,324	13,939,849
	5 Advances for inventories	040		139,528
	6 Long term assets held for sale	041
	7 Biological assets	042
	II. Receivables (044 up to 049)	043	177,953,111	183,642,928
	1 Receivables from associated undertakings	044
	2 Trade receivables	045	137,336,315	137,105,436
	3 Receivables from participating companies	046	6,408,483	5,452,738
	4 Receivables from employees and members of the business	047	382,197	264,943
	5 Receivables from government and other institutions	048	10,182,444	11,581,296
	6 Other receivables	049	23,643,672	29,238,516
	III. Current financial assets (051 up to 057)	050	6,115,737	50,957,584
	1 Shares in affiliated undertakings	051
	2 Loans to affiliates	052
	3 Participating interests (shares)	053
	4 Given loans to companies in which exist participating interests	054
	5 Investments in to securities	055
	6 Other loans, deposits etc	056	6,115,737	50,957,584
	7 Other financial assets	057
	IV. Cash at bank and in hand	058	12,383,774	9,449,275
D	PREPAYMENT AND ACCRUED INCOME	059	45,189,479	59,048,273
E	TOTAL ASSETS (001+002+034+059)	060	1,345,377,124	1,340,480,429
F	OUT-OF-BALANCE ITEMS	061	29,591,225	33,915,136

Balance sheet as at 31.12.2016., Taxpayer: AD Plastik Group

	Item 1	AOP ind. 2	Preceding year 3	Current year 4
LIABILITIES
A	CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	622,955,516	697,373,047
	I. SUBSCRIBED SHARE CAPITAL	063	419,958,400	419,958,400
	II. CAPITAL RESERVES	064	183,481,905	183,472,348
	III. RESERVES FROM GAIN (066+067-068+069+070)	065	31,549,516	27,195,847
	1 Legal reserves	066	6,139,440	6,135,475
	2 Reserves for own shares	067	3,107,594	3,875,120
	3 Own stocks and shares (deductible item)	068	3,107,594	3,875,120
	4 Statutory reserves	069	0	4,822
	5 Other reserves	070	25,410,076	21,055,550
	IV. REVALUATION RESERVES	071	-72,895,692	-35,670,436
	V. RETAINED EARNINGS OR LOSS BROUGHT FORWARD (073-074)	072	14,641,039	54,290,345
	1 Retained earnings	073	14,641,039	54,290,345
	2 Loss brought forward	074
	VI. CURRENT YEAR PROFIT OR LOSS (076-077)	075	46,225,069	48,126,522
	1 Current year profit	076	46,225,069	48,126,522
	2 Current year loss	077
	VII. MINOR INTEREST	078	-4,721	21
B	PROVISIONS (080 up to 082)	079	9,459,516	11,229,985
	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	9,505,542
C	LONG TERM LIABILITIES (084 up to 092)	083	298,864,762	185,758,712
	1 Liabilities to related parties	084
	2 Commitments for loans, deposits, etc	085
	3 Liabilities to banks and other financial institutions	086	262,592,153	169,239,078
	4 Liabilities for advances	087
	5 Trade payables	088	28,487,988	16,519,633
	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	0
D	SHORT TERM LIABILITIES (094 do 105)	093	396,477,902	421,301,055
	1 Liabilities to related parties	094
	2 Commitments for loans, deposits, etc	095	1,983,051	0
	3 Liabilities to banks and other financial institutions	096	161,117,273	216,437,187
	4 Liabilities for advances	097	23,613,360	34,461,855
	5 Trade payables	098	180,510,796	151,326,244
	6 Commitments on securities	099
	7 Liabilities to companies in which are participating interests	100	896,374	191,503
	8 Liabilities towards employees	101	9,898,976	9,078,933
	9 Liabilities for taxes, contributions and other benefits	102	15,041,837	9,672,226
	10 Liabilities to share in the result	103	27,856	27,856
	11 Amount based on fixed assets intended to sale	104
	12 Other short-term liabilities	105	3,388,379	105,250
E	DEFERRED PAYMENT OF COSTS AND FUTURE INCOME	106	17,619,428	24,817,630
F	TOTAL LIABILITIES (062+079+083+093+106)	107	1,345,377,124	1,340,480,429
G	OUT-OF BALANCE ITEMS	108	29,591,225	33,915,136

ADDENDUM TO BALANCE SHEET( filled in by the entrepreneur compiling the consolidated annual financial statement)

A	CAPITAL AND RESERVES
	1 Ascribed to the holders of the parent company capital	109	622,960,237	697,373,026
	2 Ascribed to minority interest	110	-4,721	21

Note 1: Appendix to Balance sheet fill companies who make consolidated financial statements.

B

Profit and loss account Reporting period: 01.01.2016. to 31.12.2016.

Taxpayer: AD Plastik Group

Item		AOP		Preceding period		Current period
			ind.	Cumulative	Quarter	Cumulative	Quarter
I.		1 OPERATING TURNOVER (112+113)	2 111	3 1,028,490,766	4 254,897,991	5 940,517,228	6 204,464,272
		1 Income from sales	112	1,002,363,709	240,665,832	922,138,611	206,289,776
		2 Other operating income	113	26,127,057	14,232,159	18,378,617	-1,825,504
II.		OPERATING CHARGES (115+116+120+124+125+126+129+130)	114	986,809,169	246,297,451	885,395,706	191,489,166
		1 Changes in the value of inventories of work in progress and finished goods	115	593,334	-4,051,441	-452,166	-2,290,510
		2 Material charges (117 up to 119)	116	607,566,278	152,253,789	552,188,987	131,636,089
		a Costs of raw materials and consumables	117	482,237,994	114,190,262	464,388,924	102,846,466
		b Costs of sales	118	52,626,498	18,480,381	26,965,756	10,645,909
		c Other external charges	119	72,701,786	19,583,146	60,834,307	18,143,715
		3 Staff costs (121 up to 123)	120	169,860,311	34,908,875	165,840,404	37,199,143
		a Salaries and wages	121	104,781,345	21,836,349	104,389,222	25,261,084
		b Costs of taxes and social security	122	36,571,186	7,447,462	35,080,843	6,329,681
		c Duties on wages	123	28,507,780	5,625,064	26,370,339	5,608,378
		4 Depreciation	124	73,198,275	18,574,052	77,829,670	20,602,514
		5 Other costs	125	107,304,984	23,597,242	70,531,359	-3,947,375
		6 Impairment (127+128)	126	767,572	767,572	0	0
		a Fixed assets (excluding financial assets)	127	0	0	0	0
		b Current assets (excluding financial assets)	128	767,572	767,572	0	0
		7 Provisions	129	8,648,985	8,648,985	4,251,291	4,251,291
		8 Other operating expenses	130	18,869,430	11,598,377	15,206,161	4,038,014
III.		FINANCIAL INCOME (132 up to 136)	131	121,454,092	19,140,060	45,156,551	20,882,330
		1 Interests, exchange rate difference, dividends with affiliates	132	86,507,384	12,957,557	16,438,918	9,897,551
		2 Interests, exchange rate difference, dividends with non-affiliates	133	26,747,508	4,433,501	16,966,006	2,834,095
		3 Part of income from affiliates and participated interests	134	8,199,200	1,749,002	11,751,619	8,150,676
		4 Non-realized financial income	135	0	0	0	0
		5 Other financial income	136	0	0	8	8
IV.		FINANCIAL CHARGES (138 up to 141)	137	153,231,464	30,398,473	95,430,275	32,670,519
		1 Interests, exchange rate difference, dividends with affiliates	138	104,247,303	25,271,006	25,280,748	7,709,421
		2 Interests, exch. rate difference, dividends with non-affiliates	139	48,984,161	5,444,030	70,149,527	24,961,098
		3 Non-realized financial charges	140	0	0	0	0
		4 Other financial charges	141	0	-316,563	0	0
V.		SHARE OF PROFIT FROM ASSOCIATED COMPANIES	142	47,391,982	13,862,741	42,648,466	15,090,859
VI.		SHARE OF LOSS FROM ASSOCIATED COMPANIES	143	10,934,111	-2,856,925	0	0
VII.		EXTRAORDINARY – OTHER INCOME	144	0	0	0	0
VIII		EXTRAORDINARY – OTHER CHARGES	145	0	0	0	0
IX.		TOTAL INCOME (111+131+142 + 144)	146	1,197,336,840	287,900,792	1,028,322,244	240,437,460
X.		TOTAL CHARGES (114+137+143 + 145)	147	1,150,974,744	273,838,999	980,825,981	224,159,686
XI.		PROFIT OR LOSS BEFORE TAXATION (146-147)	148	46,362,097	14,061,794	47,496,264	16,277,775
		1 Profit before taxation (146-147)	149	46,362,097	14,061,794	47,496,264	16,277,775
		2 Loss before taxation (147-146)	150	0	0	0	0
XII.		PROFIT TAX	151	139,584	139,584	-630,325	-693,843
XIII		PROFIT OR LOSS FOR THE PERIOD (148-151)	152	46,222,513	13,922,210	48,126,588	16,971,617
		1 PROFIT FOR THE PERIOD (149-151)	153	46,222,513	13,922,210	48,126,588	16,971,617
		2 LOSS FOR THE PERIOD (151-148)	154	0	0	0	0

B

Profit and loss account Reporting period: 01.01.2016. to 31.12.2016.

Taxpayer: AD Plastik Group

Item	AOP		Preceding period	Current period
	ind.	Cumulative	Quarter	Cumulative	Quarter
1	2	3	4	5	6

ADDENDUM TO ATS (filled in by the entrepreneur compiling the consolidated annual financial statement)

XIV.	PROFIT OR LOSS FOR THE CURRENT PERIOD
	1 Attributable to equity holders	155	46,225,069	13,924,860	48,126,522	16,972,979
	2 Attributable to minority interests	156	-2,556	-2,650	67	-1,361

Report for other comprehensive income (only for the taxpayer applying IFRS)

I.	PROFIT OR LOSS FOR THE CURRENT PERIOD (= 152)	157	46,222,513	13,922,210	48,126,588	16,971,617
II.	OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAXATION (159 up to 165)	158	-32,972,462	1,085,171	32,965,957	9,534,635
	1 Exchange differences on translation of foreign operations	159	-9,268,698	24,788,935	41,111,350	17,816,231
	2 Movements in revaluation reserves of fixed and intangible assets	160	-23,703,764	-23,703,764	-8,145,393	-8,281,597
	3 Profit or loss from revaluation of financial assets available for sale	161	0	0	0	0
	4 Gains or losses on effective cash flow protection	162	0	0	0	0
	5 Gains or losses on effective hedge of a net investment abroad	163	0	0	0	0
	6 Share of other comprehensive income / loss of associated compa nies	164	0	0	0	0
	7 Actuarial gains / losses on defined benefit plans	165	0	0	0	0
III.	TAX ON OTHER COMPREHENSIVE INCOME FOR THE CURRENT PERIOD	166	-6,594,021	-478,329	6,027,501	1,420,045
IV.	OTHER COMPREHENSIVE NET PROFIT OR LOSS (158-166)	167	-26,378,441	1,563,500	26,938,457	8,114,590
V.	OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD (157+167)	168	19,844,072	15,485,710	75,065,045	25,086,207

ADDENDUM to Report for other comprehensive income (filled in by the entrepreneur compiling the consolidated annual financial statement)

VI.	OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD
	1 Attributable to equity holders	169	19,858,523	15,493,922	75,064,860	25,091,145
	2 Attributable to minority interests	170	-14,451	-8,212	185	-4,938

B

CONTENTS

A

Taxpayer: AD Plastik Group

Cash flow statement indirect method Reporting period: 01.01.2016. to 31.12.2016.

Item AOP ind. Preceding period Current period 1 2 3 4 CASH FLOW FROM OPERATING ACTIVITIES 1 Profit before taxation 001 46,362,097 47,496,264 2 Depreciation 002 73,198,275 77,829,670 3 Increase of current liabilities 003 0 4 Decrease of current receivables 004 75,071,854 0 5 Decrease in stocks 005 0 6 Other increase of cash flow 006 57,418,934 I. Total increase of cash flow from operating activities (001 - 006) 007 194,632,226 182,744,868 1 Decrease of current liabilities 008 241,289,547 23,276,287 2 Increase of current receivables 009 37,815,158 3 Increase in stocks 010 3,471,276 10,425,278 4 Other decrease of cash flow 011 3,822,360 12,427,341 II. Total decrease of cash flow from operating activities (008 – 011) 012 248,583,183 83,944,065 A1 NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007) 013 0 98,800,803 A2 NET DECREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007) 014 53,950,957 0 CASH FLOWS FROM INVESTMENT ACTIVITIES 1 Cash inflows from sale of fixed intangible and tangible assets 015 7,231,953 2 Cash inflows from sale of ownership and debt instruments 016 128,508 3 Cash inflows from interest 017 1,275,102 0 4 Cash inflows from dividends 018 41,736,765 46,079,566 5 Other cash inflows from investment activities 019 3,581,230 III. Total cash inflows from investment activities (015-019) 020 43,011,867 57,021,257 1 Cash expenditures for purchase of fixed tangible and intangible assets 021 20,491,376 54,320,667 2 Cash expenditures for acquisition of ownership and debt instruments 022 0 3 Other cash expenditures from investment activities 023 0 IV. Total cash expenditures from investment activities (021-023) 024 20,491,376 54,320,667 B1 NET INCREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (020-024) 025 22,520,491 2,700,590 B2 NET DECREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (024-020) 026 0 0 CASH FLOW FROM FINANCIAL ACTIVITIES 1 Cash inflows from issuing ownership and debt financial instruments 027 0 2 Cash inflows from credit principal, debentures, loans and other borrowings 028 65,449,653 100,064,791 3 Other inflows from financial activities 029 6,160,560 0 V. Total cash inflows from financial activities (027-029) 030 71,610,213 100,064,791 1 Cash expenditures for the payment of credit principal and debentures 031 150,928,003 2 Cash expenditures for the payment of dividends 032 50,044,304 3 Cash expenditures for financial lease 033 3,528,375 4 Cash expenditures for repurchase of own shares 034 0 5 Other cash expenditures from financial activities 035 35,601,564 0 VI. Total cash expenditures from financial activities (031-035) 036 35,601,564 204,500,683 C1 NET INCREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (030-036) 037 36,008,649 0 C2 NET DECREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (036-030) 038 0 104,435,892 Total cash flow increase (013-014+025-026+037-038) 039 4,578,183 0 Total cash flow decrease (014-013+026-025+038-037) 040 0 2,934,499 Cash and cash equivalents at the beginning of the period 041 7,805,591 12,383,774 Cash and cash equivalents increase 042 4,578,183 0 Cash and cash equivalents decrease 043 2,934,499

Cash and cash equivalents at the end of the period 044 12,383,774 9,449,275

Statement of changes in equity Reporting period: 01.01.2016. to 31.12.2016.

Taxpayer: AD Plastik Group

Item 1	AOP ind. 2	Preceding year 3	Current period 4
1 Subscribed capital	001	419,958,400	419,958,400
2 Capital reserves	002	183,481,905	183,472,348
3 Reserves from profit	003	31,544,795	27,195,847
4 Retained profit or loss carried over	004	14,641,039	54,290,345
5 Current year profit or loss	005	46,225,069	48,126,522
6 Revalorisation of fixed material assets	006		25,149,566
7 Revalorisation of intangible assets	007
8 Revalorisation of financial assets available for sale	008
9 Other revalorisation	009	-72,895,692	-60,820,002
10 Total equity and reserves (AOP 001-009)	010	622,955,516	697,373,026
11 Exchange rate variations from net investments into foreign business operations	011	-9,268,698	41,111,350
12 Current and deferred taxes (part)	012	6,594,021	5,397,176
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	-23,703,764	27,909,005
17 Total equity increase or decrease (AOP 011 - 016)	017	-26,378,441	74,417,531
17 a Ascribed to holders of the holders company capital	018	622,960,237	74,412,789
17 b Ascribed to minority interest	019	-4,721	4,742

Items reducing Capital are entered with negative sign.

Data under EOP codes 001 to 009 are entered as balance as at Balance Sheet date.

C

AD PLASTIK D.D.

MANAGEMENT REPORT AD PLASTIK GROUP

Balance sheet	23
Profit and loss account	25
Cash flow (indirect method)	27
Statement of changes in equity	28

Appendix 1 Quarterly financial statement, AD Plastik d.d.

Reporting period: 01.01.2016. to 31.12.2016.

Quarterly financial statement 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):		1193
Consolidated report:	NO	Šifra NKD-a:	2932
Names of consolidation subjects (according to IMSF):	Seat:		REG. NO.:
Bookkeeping service:
Contact person:	Sandra Capan
(only the name and surname of the contact person to be entered)
Telephone:	021/206-651
Fax:		021/275-651
E-mail address:	sandra.capan@adplastik.hr
Name and surname:	Sanja Biočić
(person authorised for representation)
Documentation for publishing:
Financial statements (balance sheet, profit and loss statement, cash flow statement, 1. changes in equity and notes to financial statements)

• 1. Interim report
• 1. Statement of the person responsible for compiling financial statements

Place of the seal (signature of the person authorised for representation)

as at 31.12.2016. Balance sheet Taxpayer: AD Plastik d.d.

	Item	AOP ind.	Preceding year	Current year
	1	2	3	4
ASSETS
A	RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID	001
B	FIXED ASSETS (003+010+020+029+033)	002	1,022,628,682	884,811,103
	I. Intangible assets (004 up to 009)	003	99,185,976	93,708,907
	1 Development costs	004	63,178,571	72,129,887
	2 Concessions, patents, licenses, trademarks, softwares and other rights	005	1,403,157	1,297,746
	3 Goodwill	006		0
	4 Advances for purchase of intangible assets	007		0
	5 Intangible assets in preparation	008	34,604,247	20,281,274
	6 Other intangible assets	009		0
	II. Tangible assets (011 up to 019)	010	511,441,984	498,847,519
	1 Land	011	139,976,599	147,283,499
	2 Buildings	012	193,773,750	191,426,470
	3 Plants and machinery	013	157,835,416	141,736,206
	4 Tools, plant & office inventory, furniture & transport means	014	12,045,278	11,705,049
	5 Biological assets	015		0
	6 Payments on account for tangible assets	016		0
	7 Tangible assets in preparation	017	7,810,942	6,696,294
	8 Other tangible assets	018		0
	9 Investment in real estate	019		0
	III. Fixed financial assets (021 up to 028)	020	187,263,125	153,112,669
	1 Shares in affiliated undertakings	021	44,376,245	44,383,495
	2 Loans to affiliated undertakings	022	75,023,792	81,988,724
	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	0
	5 Investments in securities	025	61,700	61,700
	6 Other loans, deposits etc	026	8,288,207	4,899,595
	7 Other fixed financial assets	027		0
	8 Investment stated in equity method	028		0
	IV. Receivables (030 up to 032)	029	212,619,383	135,928,541
	1 Receivables from associated undertakings	030	198,443,398	135,928,541
	2 Receivables from sales on credit	031		0
	3 Other receivables	032	14,175,985	0
	V. Deffered tax assets	033	12,118,214	3,213,468
	CURRENT ASSETS (035+043+050+058)	034	213,790,615	290,229,025
	I. Inventory (036 up to 042)	035	50,539,344	54,635,125
	1 Materials and supplies	036	35,086,842	36,442,706
	2 Work in progress	037	3,416,353	4,091,618
	3 Finished goods	038	9,812,364	10,766,284
	4 Commercial goods	039	2,223,785	3,334,516
	5 Advances for inventories	040		0
	6 Long term assets held for sale	041		0
	7 Biological assets	042		0
	II. Receivables (044 up to 049)	043	142,268,895	184,371,968
	1 Receivables from associated undertakings	044	11,253,092	56,766,845
	2 Trade receivables	045	101,416,624	95,527,003
	3 Receivables from participating companies	046	4,883,018	4,150,673
	4 Receivables from employees and members of the business	047	302,213	129,733
	5 Receivables from government and other institutions	048	5,254,298	5,376,958
	6 Other receivables	049	19,159,650	22,420,757
	III. Current financial assets (051 up to 057)	050	17,568,690	48,165,548
	1 Shares in affiliated undertakings	051		0
	2 Loans to affiliates	052	13,368,967	0
	3 Participating interests (shares)	053		0
	4 Given loans to companies in which exist participating interests	054	0	0
	5 Investments in to securities	055		0
	6 Other loans, deposits etc	056	4,199,723	48,165,548
	7 Other financial assets	057		0
	IV. Cash at bank and in hand	058	3,413,687	3,056,384
	PREPAYMENT AND ACCRUED INCOME	059	36,922,559	49,205,747
	TOTAL ASSETS (001+002+034+059)	060	1,273,341,857	1,224,245,876
	OUT-OF-BALANCE ITEMS	061	4,592,542	4,738,178

as at 31.12.2016. Balance sheet Taxpayer: AD Plastik d.d.

PASIVA A CAPITAL AND RESERVES (063+064+065+071+072+075+078) 062 644,971,641 I. SUBSCRIBED SHARE CAPITAL 063 419,958,400 II. CAPITAL RESERVES 064 183,075,797 III. RESERVES FROM GAIN (066+067-068+069+070) 065 31,538,929 1 Legal reserves 066 6,128,852 2 Reserves for own shares 067 3,107,594 3 Own stocks and shares (deductible item) 068 3,107,594 4 Statutory reserves 069 5 Other reserves 070 25,410,076 IV. REVALUATION RESERVES 071 -34,876,517 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 1 Current year profit 076 32,550,662 2 Current year loss 077 VII. MINOR INTEREST 078 B PROVISIONS (080 up to 082) 079 8,914,024 1 Provisions for pensions, severance pay and similar obligations 080 1,724,443 2 Provisions for tax liabilities 081 3 Other provisions 082 7,189,581 C LONG TERM LIABILITIES (084 up to 092) 083 265,493,900 1 Liabilities to related parties 084 0 2 Commitments for loans, deposits, etc 085 3 Liabilities to banks and other financial institutions 086 246,080,090 4 Liabilities for advances 087 5 Trade payables 088 19,263,124 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 D SHORT TERM LIABILITIES (094 do 105) 093 338,674,799 1 Liabilities to related parties 094 17,875,305 2 Commitments for loans, deposits, etc 095 3 Liabilities to banks and other financial institutions 096 141,457,550 4 Liabilities for advances 097 6,826,368 5 Trade payables 098 155,575,261	Item	AOP ind.	Preceding year	Current year
	1	2	3	4
				666,300,208
				419,958,400
				183,075,797
				27,184,402
				6,128,852
				3,875,120
				3,875,120
				0
				21,055,550
				-1,151,262
				0
				0
				0
				37,232,870
				37,232,870
				0
				0
				9,219,945
				1,724,443
				0
				7,495,502
				174,412,368
				0
				0
				162,353,095
				0
				12,059,273
				0
				0
				0
				0
				360,859,419
				5,453,585
				0
				206,333,946
				12,249,728
				125,598,090
	6 Commitments on securities	099		0
7 Liabilities to companies in which are participating interests 100 7,808				81,501
8 Liabilities towards employees 101 8,045,263				7,081,311
9 Liabilities for taxes, contributions and other benefits 102 6,190,380				4,015,713
10 Liabilities to share in the result 103 27,856				27,856
11 Amount based on fixed assets intended to sale 104				0
12 Other short-term liabilities 105 2,669,011				17,690
E DEFERRED PAYMENT OF COSTS AND FUTURE INCOME 106 15,287,492				13,453,937
F TOTAL LIABILITIES (062+079+083+093+106) 107 1,273,341,857				1,224,245,876
G OUT-OF BALANCE ITEMS 108 4,592,542				4,738,178

ADDENDUM TO BALANCE SHEET( filled in by the entrepreneur compiling the consolidated annual financial statement)

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

Note 1: Appendix to Balance sheet fill companies who make consolidated financial statements.

Profit and loss account Reporting period: 01.01.2016. to 31.12.2016.

Taxpayer: AD Plastik d.d.

		AOP	Preceding period		Current period
	Item 1	ind. 2	Cumulative 3	Quarter 4	Cumulative 5	Quarter 6
I.	OPERATING TURNOVER (112+113)	111	770,699,415	192,657,042	722,617,275	152,376,797
	1 Income from sales	112	753,703,563	184,257,194	696,992,142	140,741,859
	2 Other operating income	113	16,995,851	8,399,848	25,625,134	11,634,938
II.	OPERATING CHARGES (115+116+120+124+125+126+129+130)	114	741,574,380	187,763,525	691,563,052	143,490,115
	1 Changes in the value of inventories of work in progress and finished goods	115	3,256,294	-344,864	-1,629,185	-1,398,768
	2 Material charges (117 up to 119)	116	477,505,130	120,656,065	451,505,824	106,343,401
	a Costs of raw materials and consumables	117	365,393,671	89,050,281	342,895,376	77,312,473
	b Costs of sales	118	56,203,273	15,206,223	62,821,250	16,614,186
	c Other external charges	119	55,908,186	16,399,561	45,789,198	12,416,742
	3 Staff costs (121 up to 123)	120	119,533,164	24,203,480	121,203,523	26,064,426
	a Salaries and wages	121	71,719,898	14,522,088	74,439,976	17,872,069
	b Costs of taxes and social security	122	29,883,291	6,050,870	29,291,957	4,815,272
	c Duties on wages	123	17,929,975	3,630,522	17,471,590	3,377,085
	4 Depreciation	124	42,878,203	11,711,579	49,293,414	12,752,810
	5 Other costs	125	84,130,373	20,619,413	57,413,299	-5,498,165
	6 Impairment (127+128)	126	0	0	0	0
	a fixed assets (excluding financial assets)	127	0	0	0	0
	b current assets (excluding financial assets)	128	0	0	0	0
	7 Provisions	129	7,863,773	7,863,773	2,505,921	2,505,921
	8 Other operating expenses	130	6,407,444	3,054,079	11,270,257	2,720,490
III.	FINANCIAL INCOME (132 up to 136)	131	65,388,127	7,034,657	72,347,081	17,831,916
	1 Interests, exchange rate difference, dividends with affiliates	132	6,264,149	2,012,816	4,956,778	1,492,270
	2 Interests, exchange rate difference, dividends with non-affiliates	133	8,961,499	3,234,478	8,954,143	692,432
	3 Part of income from affiliates and participated interests	134	50,162,479	1,787,363	58,436,152	15,647,207
	4 Non-realized financial income	135	0	0	0	0
	5 Other financial income	136	0	0	8	8
IV.	FINANCIAL CHARGES (138 up to 141)	137	62,261,028	2,162,662	65,674,160	24,262,580
	1 Interests, exchange rate difference, dividends with affiliates	138	1,119,516	872,992	2,205,931	561,462
	2 Interests, exchange rate difference, dividends with non-affiliates	139	30,921,224	8,567,670	63,468,229	23,701,118
	3 Non-realized financial charges	140	30,220,288	-7,278,000	0	0
	4 Other financial charges	141	0	0	0	0
V.	SHARE OF PROFIT FROM ASSOCIATED COMPANIES	142	0	0	0	0
VI.	SHARE OF LOSS FROM ASSOCIATED COMPANIES	143	0	0	0	0
VII.	EXTRAORDINARY – OTHER INCOME	144	0	0	0	0
VIII	EXTRAORDINARY – OTHER CHARGES	145	0	0	0	0
IX.	TOTAL INCOME (111+131+142 + 144)	146	836,087,542	199,691,698	794,964,357	170,208,713
X.	TOTAL CHARGES (114+137+143 + 145)	147	803,835,408	189,926,187	757,237,213	167,752,695
XI.	PROFIT OR LOSS BEFORE TAXATION (146-147)	148	32,252,134	9,765,512	37,727,144	2,456,018
	1 Profit before taxation (146-147)	149	32,252,134	9,765,512	37,727,144	2,456,018
	2 Loss before taxation (147-146)	150	0	0	0	0
XII.	PROFIT TAX	151	-298,528	-298,528	494,273	494,273
XIII	PROFIT OR LOSS FOR THE PERIOD (148-151)	152	32,550,662	10,064,040	37,232,870	1,961,745
	1 PROFIT FOR THE PERIOD (149-151)	153	32,550,662	10,064,040	37,232,870	1,961,745
	2 LOSS FOR THE PERIOD (151-148)	154	0	0	0	0

Profit and loss account Reporting period: 01.01.2016. to 31.12.2016.

⁶ Share of other comprehensive income / loss of associated compa-

III. TAX ON OTHER COMPREHENSIVE INCOME FOR THE CURRENT

V. OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD

Taxpayer: AD Plastik d.d.

		AOP	Preceding period Cumulative Quarter		Current period
	Item	ind.			Cumulative	Quarter
	1	2	3	4	5	6
ADDENDUM TO ATS (filled in by the entrepreneur compiling the consolidated annual financial statement)
XIV. PROFIT OR LOSS FOR THE CURRENT PERIOD
1 Attributable to equity holders		155
2 Attributable to minority interests		156
	Report for other comprehensive income (only for the taxpayer applying IFRS)
I.	PROFIT OR LOSS FOR THE CURRENT PERIOD (= 152)	157	32,550,662	10,064,040	37,232,870	1,961,745
II. up to 165)	OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAXATION (159	158	-15,341,096	-7,359,347	6,629,292	3,897,692
	1 Exchange differences on translation of foreign operations	159	-15,341,096	-7,359,347	6,629,292	3,897,692
	2 Movements in revaluation reserves of fixed and intangible assets	160	0	0	0	0
	3 Profit or loss from revaluation of financial assets available for sale	161	0	0	0	0

4 Gains or losses on effective cash flow protection 162 0 0 0 0 5 Gains or losses on effective hedge of a net investment abroad 163 0 0 0 0

nies ^{164 0 0 0 0} 7 Actuarial gains / losses on defined benefit plans 165 0 0 0 0

PERIOD ¹⁶⁶ -3,068,219 -1,471,869 1,193,273 646,953

(157+167) ¹⁶⁸ 20,277,785 4,176,562 42,668,890 5,212,484

IV. OTHER COMPREHENSIVE NET PROFIT OR LOSS (158-166) 167 -12,272,877 -5,887,478 5,436,020 3,250,740

ADDENDUM to Report for other comprehensive income (filled in by the entrepreneur compiling the consolidated annual financial statement)

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

A

CONTENTS

A

Taxpayer: AD Plastik d.d.

C

Cash flow statement indirect method Reporting period: 01.01.2016. to 31.12.2016.

Item 1	AOP ind. 2	Preceding period 3	Current period 4
CASH FLOW FROM OPERATING ACTIVITIES
1 Profit before taxation	001	32,252,134	37,727,144
2 Depreciation	002	42,878,203	49,293,414
3 Increase of current liabilities	003		0
4 Decrease of current receivables	004	49,376,203	0
5 Decrease in stocks	005	6,342,545	0
6 Other increase of cash flow	006		29,459,209
I. Total increase of cash flow from operating activities (001 - 006)	007	130,849,085	116,479,767
1 Decrease of current liabilities	008	96,055,093	37,506,079
2 Increase of current receivables	009		19,707,096
3 Increase in stocks	010		4,095,781
4 Other decrease of cash flow	011	22,933,914	14,116,743
II. Total decrease of cash flow from operating activities (008 – 011)	012	118,989,007	75,425,699
A1 NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	013	11,860,078	41,054,068
A2 NET DECREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	014	0	0
CASH FLOWS FROM INVESTMENT ACTIVITIES
1 Cash inflows from sale of fixed intangible and tangible assets	015		3,644,034
2 Cash inflows from sale of ownership and debt instruments	016		128,508
3 Cash inflows from interest	017	1,275,102	9,329,059
4 Cash inflows from dividends	018	41,736,765	46,079,566
5 Other cash inflows from investment activities	019		16,763,009
III. Total cash inflows from investment activities (015-019)	020	43,011,867	75,944,175
1 Cash expenditures for purchase of fixed tangible and intangible assets	021	40,399,166	37,689,535
2 Cash expenditures for acquisition of ownership and debt instruments	022		7,251
3 Other cash expenditures from investment activities	023		1,769,628
IV. Total cash expenditures from investment activities (021-023)	024	40,399,166	39,466,414
B1 NET INCREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (020-024)	025	2,612,701	36,477,762
B2 NET DECREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (024-020)	026	0	0
CASH FLOW FROM FINANCIAL ACTIVITIES
1 Cash inflows from issuing ownership and debt financial instruments	027		0
2 Cash inflows from credit principal, debentures, loans and other borrowings	028	80,125,059	95,926,964
3 Other inflows from financial activities	029	30,198,392	0
V. Total cash inflows from financial activities (027-029)	030	110,323,451	95,926,964
1 Cash expenditures for the payment of credit principal and debentures	031	110,593,473	120,243,417
2 Cash expenditures for the payment of dividends	032		50,044,304
3 Cash expenditures for financial lease	033		3,528,375
4 Cash expenditures for repurchase of own shares	034		0
5 Other cash expenditures from financial activities	035	12,589,592	0
VI. Total cash expenditures from financial activities (031-035)	036	123,183,065	173,816,096
C1 NET INCREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (030-036)	037	0	0
C2 NET DECREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (036-030)	038	12,859,614	77,889,132
Total cash flow increase (013-014+025-026+037-038)	039	1,613,165	0
Total cash flow decrease (014-013+026-025+038-037)	040	0	357,303
Cash and cash equivalents at the beginning of the period	041	1,800,522	3,413,687
Cash and cash equivalents increase	042	1,613,165	0
Cash and cash equivalents decrease	043		357,303

Cash and cash equivalents at the end of the period 044 3,413,687 3,056,384

Statement of changes in equity

Reporting period: 01.01.2016. to 31.12.2016. Taxpayer: AD Plastik d.d.

Item 1	AOP ind. 2	Preceding year 3	Current period 4
1 Subscribed capital	001	419,958,400	419,958,400
2 Capital reserves	002	183,075,797	183,075,797
3 Reserves from profit	003	31,538,929	27,184,402
4 Retained profit or loss carried over	004	12,724,371	0
5 Current year profit or loss	005	32,550,662	37,232,870
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	-34,876,517	-1,151,262
10 Total equity and reserves (AOP 001-009)	010	644,971,641	666,300,208
11 Exchange rate variations from net investments into foreign business operations	011	-15,341,096	6,629,292
12 Current and deferred taxes (part)	012	3,068,219	1,687,546
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		13,011,728
17 Total equity increase or decrease (AOP 011 - 016)	017	-12,272,877	21,328,566
17 a Ascribed to holders of the holders company capital	018
17 b Ascribed to minority interest	019

Items reducing Capital are entered with negative sign.

Data under EOP codes 001 to 009 are entered as balance as at Balance Sheet date.

A

Management's

D

A

MANAGEMENT REPORT AD PLASTIK GROUP

CONTENTS

D

Solin, February 2017

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 December 31 2016, give a complete and true review of the assets and liabilities, profit and loss, financial position and business activities of the issuers and companies included in the consolidation as a whole.

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

President of the Management Board

Marinko Došen

Member of the Management Board

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, FEBRUARY 2017 WWW.ADPLASTIK.HR