Granolio d.d.

Annual / Quarterly Financial Statement • Feb 28, 2017

Consolidated financial results for the twelve months period ended 31 December 2016 (unaudited)

General information on Granolio d.d.

GRANOLIO d.d. ("The Company") is a joint-stock company registered with the Commercial Court of Zagreb, Croatia. The Company's tax number (OIB) is 59064993527, and its registration number (MBS) 080111595.

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

Subsidiaries

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

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

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

Ownership in subsidiaries is presented in the organizational chart below:

The Group monitors its business operations through four business segments:

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

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

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

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

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

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

	1-12 2016	1-12 2015	change
Operating income	844,413	938,218	(93,805)	(10%)
Operating expenses	(808,843)	(896,860)	88,017	10%
EBIT	35,570	41,357	(5,788)	(14%)
EBIT margin	4%	4%
EBITDA	73,257	75,695	(2,438)	(3%)
EBITDA margin	9%	8%
Net financial result	(28,329)	(21,707)	(6,622)	(31%)
Net result for the period	5,088	16,069	(10,981)	68%
Result attributable to the Group	2,452	11,150	(8,698)	78%
Minority interest	2,636	4,919	(2,283)	46%

in thousands of HRK

Comparing to the last year, operating result before financial income and expenses and tax (EBIT) is lower mainly due to increased impairment cost by HRK 2m. Impairment cost relate to the write-off of slow moving and obsolete inventories.

Within the operating expenses, staff costs have increased. Increase is noted in the companies Zdenka and Žitar for the amount of HRK 2.7m.

When compared to 2015 net result decreased in 2016 mainly due to net negative financial result and its increase by HRK 6.6m. In the fourth quarter in 2016 and in the fourth quarter in 2015 the Group has offset part of financial income and financial expenses, which met conditions to be offset. This business change needs to be taken into consideration only when evaluating operations of each and every quarter separately.

Normalization of the value of EBITDA

	1-12 2016	1-12 2015
Reporting EBITDA	69,646	72,578
Normalization
One-off expenses	1,032	1,083
Direct write-off of uncollected receivables	20	196
Subsequently recognized prior periods expenses	877	563
Loans approval expenses stated within operating expenses	1,681	1,275
Normalized EBITDA	73,257	75,695

In 2016 the one-off consulting services cost incurred in the amount of HTK 106 thousand, loss from the sale of long-term tangible assets in the amount of HRK 660 thousand, severance payments in the amount of HRK 180 thousand, as well as other one-off costs in the amount of HRK 86 thousand. Subsequently recognized prior period expenses relate to the selling costs incurred in 2015 and 2014.

Loans approval expenses charged by banks are in fact costs of financing the Group, therefore it is more accurate to consider them as financial, and not operating expenses.

Financial indicators			in thousands of HRK
	31.12.2016	31.12.2015	change
Net assets (Capital and reserves)*	237,379	232,514	4,866	2%
Total debt	512,724	543,865	(31,141)	(6%)
Cash and cash equivalents	9,729	22,426	(12,697)	(57%)
Given loans, deposits and similar**	34,649	39,198	(4,549)	(12%)
Net debt	468,346	482,241	(13,895)	(3%)
Net debt/ normalised EBITDA	6.39	6.37
Normalised EBITDA	73,257	75,695

* Net assets = capital and reserves attributable to the equity holders of the parent and to the minority interests

** Given loans, securities and deposits

Total debt decreased in 2016 by HRK 31m, resulting with more favourable leverage indicator net debt/EBITDA.

Note related to the cash flow statement

Until the fourth quarter in 2016 the Group's cash flow statement was prepared by classifying interest paid as part of the financial cash flow. As the template for public disclosure was changed in January 2017 by classifying interest paid in the operating cash flow, the Group adjusted its report for the current and corresponding period in accordance to this change.

Separate business results for the twelve months period of 2016

Granolio d.d.			in thousands of HRK
	1-12 2016	1-12 2015	change
Operating income	595,310	698,452	(103,143)	(15%)
EBIT	29,073	28,540	533	(2%)
margin %	5%	4%
Normalised EBITDA	41,772	39,932	1,840	5%
margin %	7%	6%
Net financial result	(24,577)	(15,924)	(8,653)	(54%)
Net result	2,433	9,073	(6,640)	73%
margin %	0.4%	1.3%

When compared to prior year, despite lower sales income, key operational indicators of the company Granolio d.d. are more favourable. Lower net result is mainly the result of the negative financial result.

Zdenka - mliječni proizvodi d.o.o. u tisućama kuna
	1-12 2016	1-12 2015	change
Operating income	164,744	151,230	13,513	9%
EBIT	6,407	8,818	(2,411)	27%
margin %	4%	6%
Normalised EBITDA	19,781	21,332	(1,552)	(7%)
margin %	12%	14%
Net financial result	(1,336)	(2,166)	830	38%
Net result	5,071	6,651	(1,580)	24%
margin %	3%	4%

Income increase was noted in the sales of almost all product categories, especially in the sales of processed and cottage cheese. Income increase is the result of increased sales quantity of products, while average sales prices are slightly lower when compared to the prior year.

Income increase is noted in the sales income realized in the domestic market, as well as in the foreign markets. The main portion of export is realized from trading with neighboring countries, mainly Bosnia and Herzegovina, Slovenia, Serbia and FYR Macedonia.

Žitar d.o.o. (konsolidirani) u tisućama kuna

	1-12 2016	1-12 2015	change
Operating income	121,016	86,097	34,918	41%
EBIT	1,925	5,594	(3,669)	(66%)
margin %	2%	6%
Normalised EBITDA	10,330	12,233	(1,903)	(16%)
margin %	9%	14%
Net financial result	(1,636)	(2,390)	754	32%
Net result	199	3,166	(2,967)	94%
margin %	0%	4%

The company Žitar has noted significant income increase in the segment of grain and oilseed trade. In 2016 significant business transaction of sale of wheat was agreed in the total amount of HRK 44 million, part of which was realized within the Granolio Group.

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

When compared to the prior year impairment of inventory in the amount of HRK 2m had decreased the net result of the company.

Zdenačka farma d.o.o. u tisućama kuna
	1-12 2016	1-12 2015	change
Operating income	19,154	20,121	(967)	(5%)
EBIT	(1,639)	(913)	(726)	80%
margin %	(9%)	(5%)
Normalised EBITDA	1,145	2,461	(1,315)	(53%)
margin %	6%	12%
Net financial result	(829)	(1,207)	378	31%
Net result	(2,468)	(2,120)	(349)	16%
margin %	(13%)	(11%)

In 2016 total sale of milk in Zdenačka farma d.o.o. was 4.7 million kilos. Average sales price realized in 2016 was 9% lower than the average sales price realized in the last year, which is the main reason for the negative result realized in 2016.

Prerada žitarica d.o.o. u tisućama kuna

1-12 2016 1-12 2015 change Operating income 21,404 1,535 19,869 1294% EBIT (161) (389) 227 58% margin % (1%) (25%) Normalised EBITDA 263 30 233 773% margin % 1% 2% Net financial result 49 (20) 69 348% Net result (112) (408) 296 73% margin % (1%) (27%)

Prerada žitarica d.o.o. is the company whose main activities are storage of goods, and storage and drying of grains.

In 2016 the Company has also earned income from the wholesale of grains in the total amount of HRK 20m.

Employees

In the twelve months period of 2016 the Group employed 471 employees based on man-hour basis (in the twelve months period of 2015: 470 employees).

Environment

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

Other

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

Annex 1. Reporting period		1.1.2016	to	31.12.2016
			Quarterly financial report TFI-POD
Tax number (MB):	01244272
Company registration number (MBS):	080111595
Personal identification number (OIB):	59064993527
Issuing company: GRANOLIO d.d.
Postal code and place	10000		ZAGREB
Street and house number: BUDMANIJEVA 5
	E-mail address: granolio@granolio.hr
	Internet address www.granolio.hr
Municipality/city code and name	133
County code and name	GRAD ZAGREB 21			Number of employees:	488
Consolidated report:	YES			(period end) NKD code:	1061
Companies of the consolidation subject (according to IFRS):			Seat:	MB:
	GRANOLIO D.D.		ZAGREB	01244272
	ZDENAČKA FARMA D.O.O.		VELIKI ZDENCI	02095777
	PRERADA ŽITARICA D.O.O.		GRUBIŠNO POLJE	02095696
	ZDENKA - MLIJEČNI PROIZVODI D.O.O.		VELIKI ZDENCI	01623982
	ŽITAR D.O.O.		DONJI MIHOLJAC	01443119
	ŽITAR KONTO D.O.O.		DONJI MIHOLJAC	04212517
Bookkeeping service:
Contact person:	JASENKA KORDIĆ
	(only surname and name)
	Telephone: 01/6320-261		Telefax:	01/6320-224
	E-mail address: jkordic@granolio.hr
Family name and name: HRVOJE FILIPOVIĆ	(person authorized to represent the company)
		L.S.		(signature of the person authorized to represent the company)

Balance Sheet

as of 31.12.2016

Company: GRANOLIO d.d.
Position	AOP	Previous period	Current period
1	2	3	4
ASSETS
A) RECEIVABLES FOR SUBSCRIBED BUT NOT PAID-IN CAPITAL	001
B) LONG-TERM ASSETS (003+010+020+031+036)	002	596.406.026	576.446.115
I. INTANGIBLE ASSETS (004 do 009)	003	188.875.484	187.085.450
1. Assets development	004	0	0
2. Concessions, patents, licenses, trademarks, service marks, software and other rights	005	121.134.245	121.010.211
3. Goodwill	006	60.379.072	60.379.072
4. Prepayments for purchase of intangible assets	007	0	0
5. Intangible assets in preparation 6. Other intangible assets	008 009	0 7.362.167	0
II. TANGIBLE ASSETS (011 do 019)	010	377.614.949	5.696.167 362.311.987
1. Land	011	27.362.704	27.668.452
2. Buildings	012	234.107.823	230.490.380
3. Plant and equipement	013	73.907.487	67.677.246
4. Tools, working inventory and transportation assets	014	3.051.260	3.297.415
5. Biological assets	015	11.399.835	10.626.471
6. Prepayments for tangible assets	016	326.290	259.709
7. Tangible assets in progress	017	24.522.991	21.777.202
8. Other tangible assets	018	85.030	83.112
9. Investments in buildings	019	2.851.529	432.000
III. LONG-TERM FINANCIAL ASSETS (021 do 030)	020	29.900.593	27.023.566
1. Investments (shares) with related parties within the Group	021	0	0
2. Investments in other securities of related parties within the Group	022	0	0
3. Loans, deposits and similar assets to related parties within the Group	023	0	0
4. Investments (shares) with entrepreneurs in whom the entity holds participating interests	024	0	0
5. Investments in other securities of entrepreneurs in whom the entity holds participating interests	025	0	0
6. Loans, deposits and similar assets to entrepreneurs in whom the entity holds participating	026	0	0
7. Investments in securities	027	0	0 6.551.376
8. Loans, deposits and similar assets 9. Other investments accounted by equity method	028	9.428.404	0
10. Other long - term financial assets	029 030	0 20.472.190	20.472.190
IV. RECEIVABLES (032 do 035)	031	15.000	25.111
1. Receivables from related parties within the Group	032	0	0
2. Receivables from participating parties	033	0	0
3. Accounts receivable	034	0	0
4. Other receivables	035	15.000	25.111
V. DEFERRED TAX ASSET	036
C) SHORT TERM ASSETS (038+046+053+063)	037	349.163.445	310.831.192
I. INVENTORIES (039 do 045)	038	108.938.184	90.701.738
1. Raw materials and supplies	039	56.935.547	24.362.650
2. Work in progress	040	10.424.738	8.917.080
3. Finished goods	041	25.790.300	29.038.079
4. Merchandise	042	15.731.197	28.368.214
5. Prepayments for inventories	043	56.402	15.715
6. Long term assets held for sale	044	0	0
7. Biological assets II. RECEIVABLES (047 do 052)	045	0	0 182.302.316
1. Receivables from related parties within the Group	046 047	188.029.278 507.912	330.668
2. Receivables from participating parties	048	0	0
3. Accounts receivable	049	173.091.842	169.203.717
4. Receivables from employees and members of related parties	050	34.063	10.786
5. Receivables from government and other institutions	051	7.311.744	5.904.279
6. Other receivables	052	7.083.716	6.852.865
III. SHORT TERM FINANCIAL ASSETS (054 do 062)	053	29.770.052	28.097.767
1. Investments (shares) with related parties within the Group	054	0	0
2. Investments in other securities of related parties within the Group	055	0	0
3. Loans, deposits and similar assets to related parties within the Group	056	20.120.845	20.558.658
4. Investments (shares) with entrepreneurs in whom the entity holds participating interests	057	0	0
5. Investments in other securities of entrepreneurs in whom the entity holds participating interests	058	0	0
6. Loans, deposits and similar assets to entrepreneurs in whom the entity holds participating	059	0	0
7. Investments in securities	060	696.026	881.994
8. Loans, deposits and similar assets	061	8.953.181	6.657.115
9. Other financial assets IV. CASH AND CASH EQUIVALENTS	062	0	0 9.729.371
D) PREPAID EXPENSES AND ACCRUED REVENUE	063 064	22.425.931 11.531.870	10.735.804
E) TOTAL ASSETS (001+002+037+064)	065	957.101.341	898.013.110
F) OFF-BALANCE RECORDS	066	16.245.585	23.560.428

EQUITY AND LIABILITIES
A) ISSUED CAPITAL AND RESERVES (068 do 070+076+077+081+084+087)	067	232.514.315	237.378.529
I. SUBSCRIBED SHARE CAPITAL	068	19.016.430	19.016.430
II. CAPITAL RESERVES	069	84.186.547	84.186.547
III.RESERVES FROM PROFIT (071+072-073+074+075)	070	183.484	1.083.227
1. Reserves prescribed by law	071	183.484	283.227
2. Reserves for treasury shares	072		800.000
3. Treasury shares (deductible items)	073
4. Statutory reserves	074
5. Other reserves	075
IV. REVALUATION RESERVES	076	64.473.012	61.561.956
V. FAIR VALUE RESERVES(078-080)	077
1. Fair value of financial assets available for sale	078
2. Efficient part of cash flow hedging	079
3. Efficient part of hedging of a net investment in foreign countries	080
V. RETAINED EARNINGS OR ACCUMULATED LOSS (082-083)	081	-5.125.636	7.812.413
1. Retained earnings	082		7.812.413
2. Accumulated loss	083	5.125.636
VI. PROFIT/LOSS FOR THE CURRENT YEAR (085-086)	084	11.149.793	2.452.044
1. Profit for the current year	085	11.149.793	2.452.044
2. Loss for the current year	086
VII. MINORITY (NON-CONTROLLING) INTEREST	087	58.630.686	61.265.913
B) PROVISIONS (089 do 094)	088	249.821	0
1. Provisions for pensions, severance pay and similar libabilities	089	0	0
2. Provisions for tax liabilities	090	0	0
3. Provisions for ongoing legal cases	091	249.821	0
4. Provisions for costs of natural resources regeneration	092	0	0
5. Provisions for guarantees costs	093	0	0
6. Other provisions	094	0	0
C) LONG - TERM LIABILITIES (096 do 106)	095	383.292.406	351.567.682
1. Liabilites to related parties within the Group	096	0	0
2. Liabilities for loans, deposits, etc. to related parties within the Group	097	0	0
3. Liabilities to entrepreneurs in whom the entity holds participating interests	098	0	0
4. Liabilities for loans, deposits, etc. to entrepreneurs in whom the entity holds participating	099	0	0
5. Liabilities for loans, deposits, etc.	100	11.453	11.337
6. Liabilities to banks and other financial institutions	101	366.923.849	335.953.544
7. Liabilities for received prepayments	102	0	0
8. Accounts payable	103	238.851	212.312
9. Liabilities arising from debt securities	104	0	0
10. Other long-term liabilities	105	0	0
11. Deferred tax liability	106	16.118.253	15.390.489
D) SHORT - TERM LIABILITIES (108 do 121)	107	326.691.154	296.262.077
1. Liabilites to related parties within the Group	108	0	0
2. Liabilities for loans, deposits, etc. to related parties within the Group	109	0	0
3. Liabilities to entrepreneurs in whom the entity holds participating interests	110	0	0
4. Liabilities for loans, deposits, etc. to entrepreneurs in whom the entity holds participating	111	0	0
5. Liabilities for loans, deposits, etc.	112	0	0
6. Liabilities to banks and other financial institutions	113	96.041.815	136.988.636
7. Liabilities for received prepayments	114	2.882.763	3.653.467
8. Accounts payable	115	130.611.840	102.663.378
9. Liabilities arising from debt securities	116	80.887.770	39.770.000
10. Liabilities to employees	117	2.337.948	2.521.343
11. Liabilities for taxes, contributions and similar fees	118	10.775.124	7.072.329
12. Liabilities to shareholders	119	0	0
13. Liabilities for long-term assets held for sale	120	0	0
14. Other short - term liabilities	121	3.153.894	3.592.924
E) DEFFERED SETTLEMENTS OF CHARGES AND INCOME DEFERRED TO FUTURE PERIOD	122	14.353.646	12.804.821
F) TOTAL – CAPITAL AND LIABILITIES (067+088+095+107+122)	123	957.101.342	898.013.110
G) OFF-BALANCE RECORDS	124	16.245.585	23.560.428
APPENDIX to balance sheet (to be filled in by entrepreneur that prepares consolidated financial statements)
A) CAPITAL AND RESERVES
1. Attributed to equity holders of parent company	125	173.883.629	176.112.616
2. Attributable to non-controlling interest	126	58.630.686	61.265.913

Note 1.: Appendix to the balance sheet to be filled by entrepreneurs that prepare consolidated financial statements.

period 01.01.2016 to 31.12.2016 Income statement

Company: GRANOLIO d.d.
Position	AOP		Previous period		Current period
		Cummulative	Quarter	Cummulative	Quarter
1	2	3	4	5	6
I. OPERATING REVENUE (125+130)	125	938.217.697	343.657.185	844.412.947	263.208.992
1. Sales revenue with related parties within the Group	126	0	0	0	0
2. Sales revenue (third parties)	127	900.270.186	326.326.701	811.499.820	249.167.913
3. Revenue from the use of own products, goods and services 4. Other operating revenue with related parties within the Group	128 129	2.293.162 0	703.350 0	2.266.590 0	628.629 0
5. Other operating revenue (third parties)	130	35.654.349	16.627.134	30.646.537	13.412.451
II. OPERATING COSTS (132+133+137+141+142+143+146+153)	131	896.860.250	317.109.444	808.842.767	247.011.164
1. Changes in value of work in progress and finished products	132	-9.173.189	-4.353.112	-4.280.655	-2.010.127
2. Material costs (133 do 136)	133	802.714.779	294.593.767	710.226.866	219.008.033
a) Raw material and material costs	134	396.823.533	102.220.252	343.835.855	92.895.268
b) Cost of goods sold c) Other external costs	135 136	344.402.884 61.488.362	168.528.689 23.844.825	308.144.157 58.246.855	106.988.874 19.123.891
3. Staff costs (138 do 140)	137	42.623.460	10.810.300	45.603.435	11.819.199
a) Net salaries and wages	138	26.075.536	6.654.267	27.727.544	7.201.872
b) Tax and contributions from salary expenses	139	10.342.777	2.582.271	11.184.918	2.892.139
c) Contributions on gross salaries	140	6.205.146	1.573.761	6.690.972	1.725.188
4. Depreciation and amortisation	141	30.252.637	7.626.644	31.201.964	7.907.458
5. Other costs	142	11.826.008	3.154.662	9.843.650	3.287.999
6. Impairment (144+145)	143	967.784	965.709	2.874.673	2.855.342
a) Impairment of long-term assets (financial assets excluded)	144	0	0 965.709	0 2.874.673	0 2.855.342
b) Impairment of short - term assets (financial assets excluded) 7. Provisions (147 do 152)	145 146	967.784			0
a) Provisions for pensions, severance paments and similar liabilities	147	0	0	0	0
b) Provisions for tax liabilities	148	0	0	0	0
c) Provisions for ongoing legal cases	149	0	0	0	0
d) Provisions for costs of natural resources refurbishment	150	0	0	0	0
e) Provisions for guarantees costs	151	0	0 0	0 0	0 0
f) Other provisions 8. Other operating costs	152 153	0 17.648.772	4.311.474	13.372.834	4.143.260
III. FINANCIAL INCOME (155 do 164)	154	10.218.996	1.929.071	5.069.103	2.596.461
1. Income from investment in shares of related parties within the Group	155	0	0	0	0
2. Income from investment in shares of entrepreneurs in whom the entity holds participating	156	0	0	0	0
interest 3. Income from other long-term financial investments and loans granted to related parties
within the Group	157	245.495	245.264	245.598	245.598
4. Other income arising from interest with related parties within the Group	158	0	0	0	0
5. Foreign exchange gains and similar financial income with related parties within the Group	159	0	0	0	0
6. Income from other long-term financial investments and loans	160	977.431	514.048	1.418.591	1.257.704
7. Other income arising from interest	161	2.959.738	259.350	946.460	164.168
8. Foreign exchange gains and similar financial income	162	3.804.738	478.562	2.279.111	461.275
9. Unrealized gains (income) from financial assets	163	0	0	0	0
10. Other financial income	164	2.231.595	431.848	179.343	467.716
IV. FINANCIAL EXPENSES (166 do 172)	165	31.925.933	8.928.295	33.398.173	9.665.935
1. Expenses arising from interests and similar expenses with related parties within the Group	166	0	0	0	0
2. Foreign exchange losses and similar financial expenses with related parties within the	167	0	0	0	0
Group
3. Expenses arising from interest and similar expenses	168	29.031.008	8.350.766 548.298	31.256.515 1.877.893	8.633.409 865.038
4. Foreign exchange losses and similar financial expenses 5. Unrealized losses (expenses) on financial assets	169 170	2.714.359 28.932	28.932	0	0
6. Financial assets impairment (net)	171	0	0	60.000	0
7. Other financial expenses	172	151.633	299	203.766	167.488
V. PROFIT SHARE IN PARTICIPATING INTERESTS	173
VI. PROFIT SHARE IN JOINT-VENTURE	174
VII. LOSS SHARE IN PARTICIPATING INTERESTS VIII. LOSS SHARE IN JOINT-VENTURE	175 176
IX. TOTAL INCOME (125+164+173 + 174)	177	948.436.693	345.586.256	849.482.050	265.805.453
X. TOTAL EXPENSES (131+165+175 + 176)	178	928.786.183	326.037.739	842.240.941	256.677.099
XI. PROFIT OR LOSS BEFORE TAXES (177-178)	179	19.650.510	19.548.517	7.241.109	9.128.354
1. Profit before taxes (177-178)	180	19.650.510	19.548.517	7.241.109	9.128.354
2. Loss before taxes (178-177)	181	0	0 3.581.715	0 2.153.204	0 2.153.204
XII. PROFIT TAX XIII. PROFIT OR LOSS FOR THE PERIOD (179-182)	182 183	3.581.715 16.068.795	15.966.802	5.087.905	6.975.150
1. Profit for the period (179-182)	184	16.068.795	15.966.802	5.087.905	6.975.150
2. Loss for the period (182-179)	185	0	0	0	0
APPENDIX to income statement (to be filled in by entrepreneur that prepares consolidated financial statements)
XIV. PROFIT OR LOSS FOR THE PERIOD
1. Attributed to equity holders of parent company 2. Attributable to non-controlling interest	186 187	11.149.793 4.919.003	13.515.169 2.451.632	2.452.044 2.635.861	5.520.100 1.455.050
STATEMENT OF OTHER COMPREHENSIVE INCOME (only for IFRS adopters)
I. PROFIT OR LOSS FOR THE PERIOD	188	16.068.795	15.966.802	5.087.905	6.975.150
II. OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAXES (190 do 197)	189	0	0	0	0
1. Exchange differences on translation of foreign operations	190
2. Movements in revaluation reserves of long - term tangible and intangible assets 3. Profit or loss arising from re-evaluation of financial assets available for sale	191 192
4. Gains or losses arising on efficient cash flow hedging	193
5. Gains or losses arising on efficient hedge of a net investment in foreign countries	194
6. Share in other comprehensive income / loss in participating interests	195
7. Actuarial gains / losses on defined benefit plans	196
8. Other changes in equity non related to the owners	197
III. TAX ON OTHER COMPREHENSIVE INCOME FOR THE PERIOD IV. NET OTHER COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (158-166)	198 199	0	0	0	0
V. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (188+199)	200	16.068.795	15.966.802	5.087.905	6.975.150
APPENDIX to other comprehensive income statement (to be filled in by entrepreneur that prepares consolidated financial statements)
VI. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD
1. Attributed to equity holders of parent company	201	11.149.793	13.515.169	2.452.044	5.520.100
2. Attributed to non-controlling interest	202	4.919.003	2.451.632	2.635.861	1.455.050

Cash flow statement - indirect method period 01.01.2016 to 31.12.2016

Company: GRANOLIO d.d.
Position	AOP	Previous period	Current period
1	2	3	4
CASH FLOWS FROM OPERATING ACTIVITIES
1. Profit before tax	001	19.650.509	7.241.110
2. Adjustments (003 do 010)	002	49.266.020	61.952.086
a.) Depreciation and amortisation	003	30.252.638	31.201.964
b.) Gains and losses from sale and impairment of long-term tangible and intangible assets	004	(3.573.803)	3.982.766
c.) Gains and losses from sale and unrealised gains or losses and impairment of financial assets	005	(705.755)	(1.124.901)
d.) Interest and dividend income	006	(4.182.662)	(2.915.589)
e.) Interest expense	007	29.031.008	32.216.469
f.) Provisions	008
g .) Foreign exchange differences (unrealised)	009
h.) Other adjustments for non-cash transactions and unrealised gains and losses	010	(1.555.406)	(1.408.623)
I. Cash flow increase or decrease before changes in working capital (001 do 002)	011	68.916.529	69.193.196
3. Working capital changes ( 013 do 016)	012	42.626.629	(2.161.585)
a.) Increase or decrease in short term liabilities	013	(11.267.752)	(29.389.617)
b.) Increase or decrease in short term receivables	014	16.291.611	7.738.226
c.) Increase or decrease in inventories	015	37.602.770	19.489.806
d.) Other increase or decrease in working capital	016
II. Cash from operations (011+012)	017	111.543.158	67.031.610
4. Interest paid	018	(31.100.841)	(32.194.835)
5. Income tax paid	019	(539.516)	(5.270.899)
A) NET CASH FLOW FROM OPERATING ACTIVITIES (017 do 019)	020	79.902.801	29.565.876
CASH FLOW FROM INVESTING ACTIVITIES 1. Cash inflows from sales of long-term tangible and intangible assets			633.848
2. Cash inflow from sale of financial instruments	021 022	74.877 925.952
3. Interest received	023	4.445.745	2.100.293
4. Dividend received	024	-	19.794
5. Cash inflow from repayment of loans given and savings deposits	025	30.583.626	86.565.012
6. Other cash inflows from investing activities	026	291.367	193.745
III. Total cash inflows from investing activities (021 do 026)	027	36.321.567	89.512.692
1. Cash outflow for purchase of long-term tangible and intangible assets	028	(15.086.526)	(18.725.583)
2. Cash outflow for acquisition of financial instruments	029		(27.137)
3. Cash outflow for granting loans and other borrowings in the given period	030	(27.679.600)	(82.086.034)
4. Aquisition of subsidiaries net of cash acquired	031
5. Other cash outflow for investing activities	032	-
IV. Total cash outflow for investing activities (028 do 032)	033	(42.766.126)	(100.838.754)
B) NET CASH FLOW FROM INVESTING ACTIVITIES (027+033)	034	(6.444.559)	(11.326.062)
CASH FLOW FROM FINANCING ACTIVITIES
1. Cash inflow from increase of the share (subscribed) capital	035
2. Cash inflow from issuing equity and debt financial instruments 3. Cash proceeds from loan principals, promissory notes and other borrowings	036 037	435.971.511	369.850.096
4. Other proceeds from financial activities	038		528.760
V. Total cash inflows from financial activities (027 do 029)	039	435.971.511	370.378.856
1. Cash outflow for repayment of loan principals, promissory notes and other borrowings	040	(454.233.936)	(355.637.226)
2. Cash outflow for dividend paid	041	-	(950.822)
3. Cash outflow for financial lease	042	(4.219.674)	(3.609.414)
4. Cash outflow for purchase of treasury shares and decrease of share (subscribed) capital	043
5. Other cash outflow for financing activities	044	(31.900.448)	(41.117.768)
VI. Total cash outflow for financing activities (031 do 035)	045	(490.354.058)	(401.315.230)
C) NET CASH FLOW FROM FINANCING ACTIVITIES	046	(54.382.547)	(30.936.374)
1. Unrealised foreign exchange differences in cash and cash equivalents	047
D) NET INCREASE OR DECREASE IN CASH FLOW (020+034+046+047)	048	19.075.695	(12.696.560)
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	049	3.350.236	22.425.931
F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (048+049)	050	22.425.931	9.729.371

Statement of changes in equity Obrazac

POD-PK 01.01.2016-31.12.2016

Company: GRANOLIO D.D. ,OIB 59064993527
										Attributable to the equity holders of the parent							Minority
Position	AOP	Note no.	Share (subscribed) capital	Capital reserves	Legal reserves	Reserves for treasury shares	Treasury shares (deductible)	Statutory reserves	Other reserves	Revaluation reserve	Fair value of financial assets available for	Efficient part of cash flow hedging	Efficient part of hedging of a net	Retained earnings / accumulate d loss	Profit / loss for the current year	Total attributable to the equity	(non controlling) interest	Total capital and reserves
1	2	3	4	5	6	7	8	9	10	11	sale 12	13	investment 14	15	16	holders of 17 (4 to 7 - 8 + 9 to 16)	18	19 (17+18)
Prior period
1. Balance as at 1 January of the prior period	01			19.016.430 85.379.031	183.484					67.384.068					37.479.067 -46.267.317 163.174.763 53.729.984 216.904.747
2. Changes in accounting policies	02															0		0
3. Correction of errors	03															0		0
4. Balance as at 1 January of the prior period (AOP 01 do 03)	04			19.016.430 85.379.031	183.484	0	0	0		0 67.384.068	0	0			0 37.479.067 -46.267.317 163.174.763 53.729.984 216.904.747
5. Profit / loss for the period	05																	11.149.793 11.149.793 4.919.003 16.068.796
6. Exchange differences on translation of foreign operations	06															0		0
7. Changes in revaluation reserves of long-term tangible and intangible assets	07									-2.911.056				2.911.056		0		0
8. Profit or loss from re-evaluation of financial assets available for sale	08															0		0
9. Gains or losses arising from efficient cash flow hedging	09															0		0
10. Gains or losses arising form efficient hedge of a net investments abroad	10															0		0
11. Share in other comprehensive income / loss in participating interest	11													23.793		23.793	-18.301	5.492
12. Actuarial gains / losses on defined benefit plans	12															0		0
13. Other changes in equity non related to ownership	13			-1.192.484												-1.192.484		-1.192.484
14. Tax recognised directly in equity	14													727.764		727.764		727.764
15. Increase/decrease in share (subscribed) capital (other than reinvesting profit and from pre bankuptcy settlement procedure)	15															0		0
16. Increase of share (subscribed) capital by reinvesting profit	16															0		0
17. Increase of share (subscribed) capital arising from the pre-bankruptcy settlements	17															0		0
18. Redemption of own (treasury) shares	18															0		0
19. Payment of share in profit / dividends	19															0		0
20. Other distribution of profits to the owners	20															0		0
21. Transfer to reserves by annual schedule	21														-46.267.317 46.267.317	0		0
22. Increase in reserves arising from pre-bankruptcy settlements	22															0		0
23. Balance as at 31 December of the prior period (04 do 22)	23			19.016.430 84.186.547	183.484	0	0	0		0 64.473.012	0	0			0 -5.125.637 11.149.793 173.883.629 58.630.686 232.514.315
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (only for IFRS adopters)
I. OTHER COMPREHENSIVE INCOME OF THE PRIOR PERIOD, NET OF TAX (AOP 06 to 14)	24		0	0	0	0	0	0		0 0	0	0	0	0	0	0	0	0
II. COMPREHENSIVE INCOME OR LOSS OF THE PRIOR PERIOD (AOP 05+24)	25		0	0	0	0	0	0		0 0	0	0	0	0	0	0	0	0
III. TRANSACTIONS WITH THE OWNERS OF THE PRIOR PERIOD RECOGNISED DIRECTLY IN EQUITY (AOP 15 to 22)	26		0	0	0	0	0	0		0 0	0	0	0	0	0	0	0	0

Statement of changes in equity Obrazac

POD-PK 01.01.2016-31.12.2016

POD-PK

Obrazac

Company: GRANOLIO D.D. ,OIB 59064993527
Position	AOP			Attributable to the equity holders of the parent												Minority
		Note no.	Share (subscribed) capital	Capital reserves	Legal reserves	Reserves for treasury shares	Treasury shares (deductible)	Statutory reserves	Other reserves	Revaluation reserve	Fair value of financial assets available for	Efficient part of cash flow hedging	Efficient part of hedging of a net	Retained earnings / accumulate d loss	Profit / loss for the current year	Total attributable to the equity	(non controlling) interest	Total capital and reserves
1	2	3	4	5	6	7	8	9	10	11	sale 12	13	investment 14	15	16	holders of 17 (4 to 7 - 8 + 9 to 16)	18	19 (17+18)
Current period
1. Balance as at 1 January of the current period	27			19.016.430 84.186.547	183.484	0		0 0		0 64.473.012	0	0		0 -5.125.637 11.149.793 173.883.629 58.630.686 232.514.315
2. Changes in accounting policies	28															0		0
3. Correction of errors	29															0		0
4. Balance as at 1 January of the current period (AOP 27 do 29)	30			19.016.430 84.186.547	183.484	0		0 0		0 64.473.012	0	0		0 -5.125.637 11.149.793 173.883.629 58.630.686 232.514.315
5. Profit / loss for the period	31																	2.452.044 2.452.044 2.635.861 5.087.905
6. Exchange differences on translation of foreign operations	32															0		0
7. Changes in revaluation reserves of long-term tangible and intangible assets	33									-2.911.056				2.911.056		0		0
8. Profit or loss from re-evaluation of financial assets available for sale	34															0		0
9. Gains or losses arising from efficient cash flow hedging	35															0		0
10. Gains or losses arising form efficient hedge of a net investments abroad	36															0		0
11. Share in other comprehensive income / loss in participating interest	37															0		0
12. Actuarial gains / losses on defined benefit plans	38															0		0
13. Other changes in equity non related to ownership	39													0		0	-634	-634
14. Tax recognised directly in equity	40													727.764		727.764		727.764
15. Increase/decrease in share (subscribed) capital (other than reinvesting profit and from pre bankuptcy settlement procedure)	41															0		0
16. Increase of share (subscribed) capital by reinvesting profit	42															0		0
17. Increase of share (subscribed) capital arising from the pre-bankruptcy settlements	43															0		0
18. Redemption of own (treasury) shares	44															0		0
19. Payment of share in profit / dividends	45													-950.821		-950.821		-950.821
20. Other distribution of profits to the owners	46															0		0
21. Transfer to reserves by annual schedule	47				99.743	800.000									10.250.050 -11.149.793	0		0
22. Increase in reserves arising from pre-bankruptcy settlements	48															0		0
23. Balance as at 31 December of the current period (04 do 22)	49			19.016.430 84.186.547	283.227	800.000		0 0		0 61.561.956	0	0		0 7.812.412				2.452.044 176.112.616 61.265.913 237.378.529
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (only for IFRS adopters)
I. OTHER COMPREHENSIVE INCOME OF THE CURRENT PERIOD, NET OF TAX (AOP 32 to 40)	50		0	0	0	0		0 0		0	0 0	0		0 0		0	0 0	0
II. COMPREHENSIVE INCOME OR LOSS OF THE CURRENT PERIOD (AOP 31 + 50)	51		0	0	0	0		0 0		0	0 0	0		0 0		0	0 0	0
III. TRANSACTIONS WITH THE OWNERS OF THE CURRENT PERIOD RECOGNISED DIRECTLY IN EQUITY (AOP 41 to 48)	52		0	0	0	0		0 0		0	0 0	0		0 0		0	0 0	0