AD Plastik d.d.

Quarterly Report • Jul 26, 2017

2017 INTERIM REPORT

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

FOR THE FIRST SIX MONTHS OF 2017

Contents

Management Report of AD Plastik Group and the Company AD Plastik d.d. Solin for the period 01.01. - 30.06.2017 A

D	Management's statement of responsibility	28
	Statement of changes in equity	27
	Cash flow (indirect method)	26
	Profit and loss account	24
	Balance sheet	22
C	Financial statement of the company AD Plastik	20
	Statement of changes in equity	19
	Cash flow (indirect method)	18
	Profit and loss account	16
	Balance sheet	14
B	Financial statement of AD Plastik Group	12
	AD Plastik Group with consolidation of the corresponding ownership part in affiliated companies	11
	Operating revenue per sales markets of AD Plastik Group, without affiliated companies	9
	Financial position of AD Plastik Group	8
	Key performance indicators of AD Plastik Group 01.01. - 30.06.2017	8
	Financial results for the first six months	7
	Comment by Marinko Došen, President of the Management Board	6
	Operating revenue, EBITDA and Net profit	5

A

4

A

Management Report

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

Operating revenue, EBITDA and Net profit	5
Comment by Marinko Došen, President of the Management Board	6
Financial results for the first six months	7
Key performance indicators of AD Plastik Group 01.01. - 30.06.2017	8
Financial position of AD Plastik Group	8
Operating revenue per sales markets of AD Plastik Group, without affiliated companies	9
AD Plastik Group with consolidation of the corresponding ownership part in affiliated companies	11

Operating revenue, EBITDA and Net profit of AD Plastik Group

million kunas 531.3

+3.7%

+13.8%

compared to the first six months of 2016

Earnings before interest, taxes, depreciation and amortization (EBITDA)

million kunas 85.4

compared to the first six months of 2016

Net profit

million kunas 38.9

+38.3%

compared to the first six months of 2016

A

Comment by Marinko Došen, President of the Management Board

In the first six months we have achieved good operating revenue, despite the fact that the strengthening of the Kuna (HRK) against the Euro (EUR) has been recorded. The realized revenue of the AD Plastik Group amounted to HRK 531.3 million in the reporting period, showing an increase of 3.7 percent, compared to the same period last year. Net profit for the first six months amounts to HRK 38.9 million, which presents an increase of 38.3 percent, compared to the first six months of last year.

Good results achieved in the first six months are the result of a clear strategy and vision of the company development, that we set two years ago, as well as successful production, thoughtful and quality cost management. This is also supported by the reduction of the company's credit indebtedness amounting to HRK 65.5 million in the first six months, which confirms the trend of strengthening of the AD Plastik Group's financial position.

The Russian market is clearly stabilizing, which shows a growth in operating revenue of 18.8 percent in that market, and thus the share of operating revenue from the Russian market in the Group's total revenue is growing.

I often mention exchange rate policy as one of the biggest problems for exporters in Croatia, because the strong Kuna (HRK) against the Euro (EUR) has a significant impact on the overall results of our business and the amount of revenue earned. On the other hand, the Russian Ruble (RUB) exchange rate in that period had a positive impact on our business. It is important to point out the increase in production volume, compared to the same period last year, as this is what ensures us a successful business

In the observed period, we also made new deals with our Ford and Hella customers, worth over EUR 30 million. All of this enables continuous growth of our company's market value. Thus, over the past period, the value of our share has grown, which shows how the strategy of increasing efficiency of production and cost rationalization is a viable and long-term sustainable direction.

Satisfied with the results that we have achieved and ready to respond to new challenges, we continue to work on creating a successful and stable company.

Marinko Došen President of the Management Board

A

AD Plastik Group is comprised of the following companies during the reporting period:

• • 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)

Operating revenue of AD Plastik Group realized in the first six months of 2017 amounted to HRK 531.3 million, which is 3.7% higher than the operating revenue realized in the same period last year. Despite the fact that in this year we note a further strengthening of the Kuna (HRK) against the Euro (EUR), which negatively affects the amount of operating revenues realized by AD Plastik d.d., and thus the overall results of AD Plastik Group's operating results, revenue growth has been achieved. At the same time, in the first half of 2017, Ruble (RUB) Exchange rate had positive impact, although in the last two months the Ruble (RUB) weakened again due to the fall in prices of oil.

In the observed period, the growth in operating expenses is lower than the growth in operating revenue, primarily thanks to the strategy of the Management Board of AD Plastik Group, that has been working intensively for a long time to increase production efficiency and cost rationalization. The result of cost efficiency activities is reflected in the further growth of Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of 13.8% compared to the same period last year. Realized EBITDA for the first six months of 2017 amounts to HRK 85.4 million, and the EBITDA margin is 16.07%.

The Net profit of AD Plastik Group in the first six months of 2017 amounts to HRK 38.9 million, which is 38.3% more than the Net profit realized in the same period last year. It should be noted that the growth in Net profit, among other things, comes from reducing financial costs, i.e. the interest on loans and the reduction of credit indebtedness, which is a result of two years of our effort in finding the best solution.

Key performance indicators of AD Plastik Group 01.01. - 30.06.2017

Indicators - Group	2Q16	2Q17	Index
Operating revenue (in thsd. of kuna)	512,181	531,300	103.73
Sales revenue (in thsd. of kuna)	496,131	520,263	104.86
NFD (in thsd. of kuna)	380,728	304,558	79.99
EBITDA (in thsd. of kuna)	75,005	85,362	113.81
EBITDA last 4 quarters (in thsd. of kuna)	127,582	146,211	114.60
NFD/EBITDA last 4 quarters	2.98	2.08
EBITDA margin	14.64%	16.07%
Net profit margin	5.49%	7.32%

Financial position of AD Plastik Group

The AD Plastik Group's financial position improvement trend started in 2015, but has accelerated further in the second quarter of 2017, with a reduction in the loan indebtedness by HRK 65.5 million, compared to December 31, 2016. This significant debt reduction is partially financed by the repayment of the loan with the relevant interest rates given to the company OOO Faurecia AD in Luga, that was 40 percent owned by AD Plastik Group through JV Faurecia ADP Holding s.a.s. by December last year.

Long-term financing of investment in the project "Pilot painting line for industrial research, development and innovation" started in early 2017 and will continue in the third quarter of 2017.

Compared to December 31, 2106, receivables from customers increased by HRK 37.4 million. Total liabilities to suppliers decreased by HRK 3.1 million compared to December 31, 2016, while for the previous quarter they were reA

CONTENTS

A

duced by HRK 17 million. All this indicates that the AD Plastik Group uses generated liquidity in order to reduce indebtedness. Thus, on June 30, 2017, the indebtedness coefficient was 0.41 compared to December 31, 2016, when it was 0.45.

ADPL-R-A share price rise continues in the second quarter of 2017. After the growth of 12.3% in the first quarter of 2017 and the price of HRK 155.00 on March 31, 2017, the price of the share on June 30, 2017 was HRK 165.73, which represents a growth of additional 6.9%.

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

• • Revenue of AD Plastik Group on the market of EU and Serbia increased by 0.8%
• • Revenue of AD Plastik Group in Russia increased by 18.8%

A

EU and Serbian markets

In the EU and Serbia markets, more specifically at the plants in Solin and Zagreb in Croatia and at the location in Mladenovac in Serbia, operating revenue amounting to HRK 391 million was realized in the reporting period, which is 0.8% less compared to the same period last year. To a large extent, this is the consequence of the significant strengthening of the Kuna (HRK) against the Euro (EUR). Euro (EUR) exchange rate affects the amount of reported revenue, while the volume of production compared to the same period of the previous year is higher.

In the first six months of 2017, the share in operating revenues from this market amounts to 73.56% of total operating revenue, while the share of revenue from the Russian market increased significantly.

At the end of the second quarter of 2017, new deals with Ford and Hella (Volvo), worth over EUR 30 million, have been agreed. Production will start in 2018 (Ford Q4/2018, Hella Q2/2018), and annual revenue from these projects in full year production will amount to EUR 7 million.

Russian market (subsidiaries)

In the first six months of 2017, AD Plastik Group achieved a 18.8% increase in operating revenue on the Russian market, compared to the same period last year. The share of operating revenue from the Russian market amounts to 26.44% of the Group's total operating revenue. This indicates the stabilization of the Russian market, that is, the indications of its recovery. As noted above, strengthening of Ruble (RUB) against the Euro (EUR) at calculation in the Kuna (HRK) had a positive impact on consolidated revenue from Russian market, compared to the same period last year.

Car sales on the Russian market grew by 6% in the first half of 2017, compared to the same period last year. Only in June we recorded a growth of 15%. By using natural hedging for currency risk management, through constant price alignment with our business partners in Russia, the impact of the weakening of Ruble (RUB), that we expect in 2017, is alleviated.

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

In order to present a clearer picture of business, a comparable, shortened, consolidated profit and loss account for the first half of 2016 and 2017 of AD Plastik Group was created, with the profit and loss acounts of the affiliated companies Euro Auto Plastic Systems s.r.l. Mioveni, Romania (50% ownership of AD Plastik d.d.) and Center for Research and Development of Automotive Industry Croatia (24% ownership of AD Plastik d.d.).

Profit and loss account of AD Plastik Group with consolidation of the corresponding ownership part in EURO APS and CENTAI for the 2Q/2016 and 2Q/2017 (in 000 of kuna)

OPERATING REVENUE	706,707	734,833	103.98
OPERATING EXPENSES	642,830	663,298	103.18
Material costs	413,552	428,396	103.59
Staff costs	113,377	117,270	103.43
Amortization	40,356	41,892	103.80
Other costs	75,545	75,740	100.26
FINANCIAL REVENUE	16,182	14,326	88.53
FINANCIAL EXPENSES	45,438	42,080	92.61
TOTAL REVENUE	722,888	749,160	103.63
TOTAL EXPENSES	688,268	705,378	102.49
Profit before tax	34,620	43,782	126.46
Profit tax	6,491	4,871	75.04
PROFIT OF THE PERIOD	28,129	38,911	138.33
EBITDA	104,232	113,427	108.82

Positions 2Q 2016 2Q 2017 Index

Operating revenue of AD Plastik Group with consolidated associated ownership of affiliated companies in the reporting period increased by 4%. EBITDA in the same peperiod increased by 8.8%, compared to the same period last year and totaled HRK 113.4 million.

Results of the affiliated companies are included in the result of the AD Plastik Group by equity method and these companies have no financial liabilities towards AD Plastik d.d., or credit obligations towards external entities.

A

CONTENTS

of AD Plastik Group

Balance sheet	14
Profit and loss account	16
Cash flow (indirect method)	18
Statement of changes in equity	19

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):		2,245
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)

A

Balance sheet as at 30.06.2017., Taxpayer: AD Plastik Group

	Item 1	AOP ind. 2	Preceding year 3	Current year 4
ASSETS
A	RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID	001	0	0
B	FIXED ASSETS (003+010+020+029+033)	002	930,341,260	898,692,361
	I. Intangible assets (004 up to 009)	003	128,546,966	120,729,451
	1 Development costs	004	91,485,430	79,500,297
	2 Concessions, patents, licenses, trademarks, softwares and other rights	005	1,443,552	1,698,530
	3 Goodwill	006	9,411,228	8,719,069
	4 Advances for purchase of intangible assets	007	0	0
	5 Intangible assets in preparation	008	24,550,504	29,167,531
	6 Other intangible assets	009	1,656,252	1,644,024
	II. Tangible assets (011 up to 019)	010	708,010,657	683,875,973
	1 Land	011	150,852,333	150,589,859
	2 Buildings	012	270,504,542	262,371,169
	3 Plants and machinery	013	251,347,981	236,986,384
	4 Tools, plant & office inventory, furniture & transport means	014	19,570,393	16,972,066
	5 Biological assets	015	0	0
	6 Payments on account for tangible assets	016	719,057	1,532,291
	7 Tangible assets in preparation	017	6,439,677	7,042,786
	8 Other tangible assets	018	512,536	424,552
	9 Investment in real estate	019	8,064,138	7,956,866
	III. Fixed financial assets (021 up to 028)	020	87,924,858	88,922,487
	1 Shares in affiliated undertakings	021	0	0
	2 Loans to affiliated undertakings	022	0	0
	3 Participating interests (shares)	023	82,963,564	85,136,590
	4 Given loans to companies in which exist participating interests	024	0	0
	5 Investments in securities	025	61,700	61,700
	6 Other loans, deposits etc	026	4,899,594	3,724,196
	7 Other fixed financial assets	027	0	0
	8 Investment stated in equity method	028	0	0
	IV. Receivables (030 up to 032)	029	94,700	77,338
	1 Receivables from associated undertakings	030	0	0
	2 Receivables from sales on credit	031	0	0
	3 Other receivables	032	94,700	77,338
	V. Deffered tax assets	033	5,764,080	5,087,112
C	CURRENT ASSETS (035+043+050+058)	034	351,937,116	384,135,560
	I. Inventory (036 up to 042)	035	107,565,153	110,448,204
	1 Materials and supplies	036	68,929,171	76,373,104
	2 Work in progress	037	5,442,340	6,367,509
	3 Finished goods	038	19,116,526	14,672,687
	4 Commercial goods	039	13,939,849	12,587,966
	5 Advances for inventories	040	137,267	446,938
	6 Long term assets held for sale	041	0	0
	7 Biological assets	042	0	0
	II. Receivables (044 up to 049)	043	182,996,774	257,044,657
	1 Receivables from associated undertakings	044	0	0
	2 Trade receivables 3 Receivables from participating companies	045 046	137,081,913 5,452,738	174,474,809 25,578,582
	4 Receivables from employees and members of the business	047	287,808	351,075
	5 Receivables from government and other institutions	048	11,423,894	17,061,339
	6 Other receivables	049	28,750,422	39,578,852
	III. Current financial assets (051 up to 057)	050	50,952,776	3,200,387
	1 Shares in affiliated undertakings	051	0	0
	2 Loans to affiliates	052	0	0
	3 Participating interests (shares)	053	0	0
	4 Given loans to companies in which exist participating interests	054	0	0
	5 Investments in to securities	055	0	0
	6 Other loans, deposits etc	056	50,952,776	3,200,387
	7 Other financial assets	057	0	0
	IV. Cash at bank and in hand	058	10,422,413	13,442,312
D	PREPAYMENT AND ACCRUED INCOME	059	58,478,458	27,070,631
E	TOTAL ASSETS (001+002+034+059)	060	1,340,756,834	1,309,898,552
F	OFF BALANCE SHEET ITEMS	061	33,972,091	33,777,742

A

B

Balance sheet as at 30.06.2017., Taxpayer: AD Plastik Group

Item AOP ind. Preceding year Current year

LIABILITIES A CAPITAL AND RESERVES (063+064+065+071+072+075+078) 062 697,385,487 738,817,280 I. SUBSCRIBED SHARE CAPITAL 063 419,958,400 419,958,400 II. CAPITAL RESERVES 064 191,971,409 191,971,409 III. RESERVES FROM GAIN (066+067-068+069+070) 065 -11,176,526 -11,460,957 1 Legal reserves 066 6,135,540 6,135,540 2 Reserves for own shares 067 3,875,120 4,535,729 3 Own stocks and shares (deductible item) 068 3,875,120 4,535,729 4 Statutory reserves 069 3,900 3,900 5 Other reserves 070 -17,315,967 -17,600,398 IV. REVALUATION RESERVES 071 -14,331,980 -14,510,941 V. RETAINED EARNINGS OR LOSS BROUGHT FORWARD (073-074) 072 61,260,357 113,948,744 1 Retained earnings 073 61,260,357 113,948,744 2 Loss brought forward 074 0 0 VI. CURRENT YEAR PROFIT OR LOSS (076-077) 075 49,703,797 38,910,556 1 Current year profit 076 49,703,797 38,910,556 2 Current year loss 077 0 0 VII. MINOR INTEREST 078 30 70 B PROVISIONS (080 up to 082) 079 13,094,683 10,863,063 1 Provisions for pensions, severance pay and similar obligations 080 2,269,354 2,269,568 2 Provisions for tax liabilities 081 0 0 3 Other provisions 082 10,825,328 8,593,495 C LONG TERM LIABILITIES (084 up to 092) 083 185,758,712 179,221,401 1 Liabilities to related parties 084 0 0 2 Commitments for loans, deposits, etc 085 0 0 3 Liabilities to banks and other financial institutions 086 169,239,078 166,806,530 4 Liabilities for advances 087 0 0 5 Trade payables 088 16,519,633 12,414,872 6 Commitments on securities 089 0 0 7 Liabilities to companies in which are participating interests 090 0 0 8 Other long term liabilities 091 0 0 9 Deferred tax liabilities 092 0 0 D SHORT TERM LIABILITIES (094 do 105) 093 419,034,806 356,607,870 1 Liabilities to related parties 094 0 0 2 Commitments for loans, deposits, etc 095 0 0 3 Liabilities to banks and other financial institutions 096 216,437,090 153,394,224 4 Liabilities for advances 097 34,441,882 27,416,535 5 Trade payables 098 150,109,610 154,061,685 6 Commitments on securities 099 0 0 7 Liabilities to companies in which are participating interests 100 192,011 0 8 Liabilities towards employees 101 9,074,600 10,166,018 9 Liabilities for taxes, contributions and other benefits 102 8,646,506 11,501,021 10 Liabilities to share in the result 103 27,856 27,856 11 Amount based on fixed assets intended to sale 104 0 0 12 Other short-term liabilities 105 105,250 40,532 E DEFERRED PAYMENT OF COSTS AND FUTURE INCOME 106 25,483,146 24,388,937 F TOTAL LIABILITIES (062+079+083+093+106) 107 1,340,756,834 1,309,898,552 G OFF BALANCE SHEET ITEMS 108 33,972,091 33,777,742	1	2	3	4

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	697,385,457	738,817,211
	2 Ascribed to minority interest	110	30	70

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

A

Profit and loss account Reporting period: 01.01.2017. to 30.06.2017.

Taxpayer: AD Plastik Group

		AOP	Preceding period		Current period
	Item 1	ind. 2	Cumulative 3	Quarter 4	Cumulative 5	Quarter 6
I.	OPERATING TURNOVER (112+113)	111	512,181,415	254,034,288	531,299,641	262,529,934
	1 Income from sales	112	496,130,747	244,791,078	520,263,218	254,902,303
	2 Other operating income	113	16,050,668	9,243,210	11,036,424	7,627,631
II.	OPERATING CHARGES (115+116+120+124+125+126+129+130)	114	474,648,357	233,509,911	487,829,395	240,593,461
	1 Changes in the value of inventories of work in progress and finished goods	115	2,951,494	1,752,590	3,160,165	-418,122
	2 Material charges (117 up to 119)	116	297,081,443	138,040,671	318,239,030	155,829,620
	a Costs of raw materials and consumables	117	254,273,261	128,680,379	268,301,706	132,475,801
	b Costs of sales	118	10,462,737	-4,170,970	15,558,901	6,700,629
	c Other external charges	119	32,345,445	13,531,262	34,378,423	16,653,190
	3 Staff costs (121 up to 123)	120	84,593,085	42,856,372	89,598,159	44,532,755
	a Salaries and wages	121	52,012,606	26,424,095	56,920,093	28,774,458
	b Costs of taxes and social security	122	18,589,322	9,309,093	18,243,438	8,753,415
	c Duties on wages	123	13,991,157	7,123,184	14,434,628	7,004,882
	4 Depreciation	124	37,472,318	18,571,324	41,891,595	21,162,268
	5 Other costs	125	44,430,127	30,432,034	27,898,554	13,224,407
	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	0	-2,341	2,505,921	2,502,485
	8 Other operating expenses	130	8,119,890	1,859,261	4,535,970	3,760,047
III.	FINANCIAL INCOME (132 up to 136)	131	16,181,716	2,345,945	14,326,385	2,594,688
	1 Interests, exchange rate difference, dividends with affiliates	132	2,959,289	-5,926,641	6,690,554	2,798,075
	2 Interests, exchange rate difference, dividends with non-affiliates	133	10,628,090	6,822,335	7,631,299	-201,515
	3 Part of income from affiliates and participated interests	134	2,594,337	1,450,251	4,532	-1,871
	4 Non-realized financial income	135	0	0	0	0
	5 Other financial income	136	0	0	0	0
IV.	FINANCIAL CHARGES (138 up to 141)	137	45,252,424	18,544,299	41,916,124	21,757,651
	1 Interests, exchange rate difference, dividends with affiliates	138	9,050,753	-2,016,245	23,372,743	11,697,029
	2 Interests, exch. rate difference, dividends with non-affiliates	139	36,201,671	20,560,544	18,543,381	10,060,622
	3 Non-realized financial charges	140	0	0	0	0
	4 Other financial charges	141	0	0	0	0
V.	SHARE OF PROFIT FROM ASSOCIATED COMPANIES	142	19,728,436	9,265,751	23,160,092	11,222,018
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	548,091,567	265,645,984	568,786,119	276,346,640
X.	TOTAL CHARGES (114+137+143 + 145)	147	519,900,781	252,054,210	529,745,518	262,351,112
XI.	PROFIT OR LOSS BEFORE TAXATION (146-147)	148	28,190,786	13,591,774	39,040,600	13,995,528
	1 Profit before taxation (146-147)	149	28,190,786	13,591,774	39,040,600	13,995,528
	2 Loss before taxation (147-146)	150	0	0	0	0
XII.	PROFIT TAX	151	62,025	20,990	130,004	-1,486,997
XIII	PROFIT OR LOSS FOR THE PERIOD (148-151)	152	28,128,761	13,570,784	38,910,596	15,482,525
	1 PROFIT FOR THE PERIOD (149-151)	153	28,128,761	13,570,784	38,910,596	15,482,525
	2 LOSS FOR THE PERIOD (151-148)	154	0	0	0	0

A

B

Profit and loss account Reporting period: 01.01.2017. to 30.06.2017.

V. OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD

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	28,127,500	13,570,366	38,910,556	15,482,504
		2 Attributable to minority interests	156	1,261	418	39	21
		Report for other comprehensive income (only for the taxpayer applying IFRS)
I.		PROFIT OR LOSS FOR THE CURRENT PERIOD (= 152)	157	28,128,761	13,570,785	38,910,596	15,482,525
II.		OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAXATION (159 up to 165)	158	28,732,774	21,329,215	-15,679,601	-22,180,118
		1 Exchange differences on translation of foreign operations	159	26,903,829	16,833,494	-12,695,011	-20,770,486
		2 Movements in revaluation reserves of fixed and intangible assets	160	1,828,945	4,495,721	-2,984,590	-1,409,632
		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	5,656,626	4,174,333	-2,461,615	-4,028,884
IV.		OTHER COMPREHENSIVE NET PROFIT OR LOSS (158-166)	167	23,076,148	17,154,882	-13,217,985	-18,151,234

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	51,198,580	30,722,085	25,692,571	-2,668,703
	2 Attributable to minority interests	170	6,329	3,582	39	-6

(157+167) ¹⁶⁸ 51,204,909 30,725,667 25,692,611 -2,668,709

A

CONTENTS

B

CONTENTS

A

Taxpayer: AD Plastik Group

Cash flow statement indirect method Reporting period: 01.01.2017. to 30.06.2017.

Item 1	AOP ind. 2	Preceding period 3	Current period 4
CASH FLOW FROM OPERATING ACTIVITIES
1 Profit before taxation	001	28,190,786	39,040,600
2 Depreciation	002	37,472,318	41,891,595
3 Increase of current liabilities	003	10,168,644	3,805,654
4 Decrease of current receivables	004	0	0
5 Decrease in stocks	005	0	0
6 Other increase of cash flow	006	45,703,064	44,786,314
I. Total increase of cash flow from operating activities (001 - 006)	007	121,534,812	129,524,163
1 Decrease of current liabilities	008	0	0
2 Increase of current receivables	009	43,690,698	83,586,119
3 Increase in stocks	010	1,852,575	2,883,051
4 Other decrease of cash flow	011	20,462,752	25,344,419
II. Total decrease of cash flow from operating activities (008 – 011)	012	66,006,025	111,813,589
A1 NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	013	55,528,786	17,710,573
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	7,555,445	918,124
2 Cash inflows from sale of ownership and debt instruments	016	128,500	0
3 Cash inflows from interest	017	0	9,555,598
4 Cash inflows from dividends	018	14,921,369	20,912,273
5 Other cash inflows from investment activities	019	615,000	47,530,648
III. Total cash inflows from investment activities (015-019)	020	23,220,314	78,916,643
1 Cash expenditures for purchase of fixed tangible and intangible assets	021	26,990,825	23,604,636
2 Cash expenditures for acquisition of ownership and debt instruments	022	0	0
3 Other cash expenditures from investment activities	023	3,274,776	0
IV. Total cash expenditures from investment activities (021-023)	024	30,265,601	23,604,636
B1 NET INCREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (020-024)	025	0	55,312,007
B2 NET DECREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (024-020)	026	7,045,287	0
CASH FLOW FROM FINANCIAL ACTIVITIES
1 Cash inflows from issuing ownership and debt financial instruments	027	0	0
2 Cash inflows from credit principal, debentures, loans and other borrowings	028	66,533,807	110,149,129
3 Other inflows from financial activities	029	0	0
V. Total cash inflows from financial activities (027-029)	030	66,533,807	110,149,129
1 Cash expenditures for the payment of credit principal and debentures	031	91,968,068	178,212,479
2 Cash expenditures for the payment of dividends	032	16,671,288	0
3 Cash expenditures for financial lease	033	972,053	1,939,331
4 Cash expenditures for repurchase of own shares	034	0	0
5 Other cash expenditures from financial activities	035	0	0
VI. Total cash expenditures from financial activities (031-035)	036	109,611,409	180,151,810
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	43,077,602	70,002,681
Total cash flow increase (013-014+025-026+037-038)	039	5,405,897	3,019,899
Total cash flow decrease (014-013+026-025+038-037)	040	0	0
Cash and cash equivalents at the beginning of the period	041	12,383,774	10,422,413
Cash and cash equivalents increase	042	5,405,897	3,019,899
Cash and cash equivalents decrease	043	0	0

Cash and cash equivalents at the end of the period 044 17,789,671 13,442,312

Statement of changes in equity Reporting period: 01.01.2017. to 30.06.2017.

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	183,113,293	191,971,409
3 Reserves from profit	003	27,960,045	-11,460,957
4 Retained profit or loss carried over	004	51,608,732	113,948,744
5 Current year profit or loss	005	28,127,500	38,910,556
6 Revalorisation of fixed material assets	006	27,383,349	17,221,994
7 Revalorisation of intangible assets	007	0	0
8 Revalorisation of financial assets available for sale	008	0	0
9 Other revalorisation	009	-61,431,946	-31,732,866
10 Total equity and reserves (AOP 001-009)	010	676,719,373	738,817,280
11 Exchange rate variations from net investments into foreign business operations	011	26,903,829	-12,695,011
12 Current and deferred taxes (part)	012	-5,656,626	2,331,611
13 Cash flow protection	013	0	0
14 Changes in bookkeeping policies	014	0	0
15 Correction of significant mistakes from the previous period	015	0	0
16 Other changes to capital	016	32,514,630	51,795,193
17 Total equity increase or decrease (AOP 011 - 016)	017	53,761,833	41,431,793
17 a Ascribed to holders of the holders company capital	018	53,755,834	41,431,753
17 b Ascribed to minority interest	019	5,999	40

Items reducing Capital are entered with negative sign.

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

A

Balance sheet	22
Profit and loss account	24
Cash flow (indirect method)	26
Statement of changes in equity	27

C

AD PLASTIK D.D.

MANAGEMENT REPORT AD PLASTIK GROUP

A

CONTENTS

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

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):		1,248
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

2. Statement of the person responsible for compiling financial statements

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

CONTENTS

A

C

as at 30.06.2017. 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	0	0
B	FIXED ASSETS (003+010+020+029+033)	002	884,909,750	863,987,498
	I. Intangible assets (004 up to 009)	003	93,748,704	90,966,547
	1 Development costs	004	72,457,118	64,870,360
	2 Concessions, patents, licenses, trademarks, softwares and other rights	005	1,238,643	1,584,283
	3 Goodwill	006	0	0
	4 Advances for purchase of intangible assets	007	0	0
	5 Intangible assets in preparation	008	20,052,942	24,511,904
	6 Other intangible assets	009	0	0
	II. Tangible assets (011 up to 019)	010	498,951,007	494,353,514
	1 Land	011	147,283,499	147,283,499
	2 Buildings	012	183,487,665	181,769,546
	3 Plants and machinery	013	143,036,378	141,109,792
	4 Tools, plant & office inventory, furniture & transport means	014	11,755,768	10,813,487
	5 Biological assets	015	0	0
	6 Payments on account for tangible assets	016	0	0
	7 Tangible assets in preparation	017	5,323,560	5,420,325
	8 Other tangible assets	018	0	0
	9 Investment in real estate	019	8,064,138	7,956,866
	III. Fixed financial assets (021 up to 028)	020	153,112,668	162,626,601
	1 Shares in affiliated undertakings	021	44,383,495	44,383,495
	2 Loans to affiliated undertakings	022	81,988,724	92,678,055
	3 Participating interests (shares)	023	21,779,155	21,779,155
	4 Given loans to companies in which exist participating interests	024	0	0
	5 Investments in securities	025	61,700	61,700
	6 Other loans, deposits etc	026	4,899,594	3,724,196
	7 Other fixed financial assets	027	0	0
	8 Investment stated in equity method	028	0	0
	IV. Receivables (030 up to 032)	029	135,936,843	114,207,270
	1 Receivables from associated undertakings	030	135,936,843	114,207,270
	2 Receivables from sales on credit	031	0	0
	3 Other receivables	032	0	0
	V. Deffered tax assets	033	3,160,529	1,833,566
C	CURRENT ASSETS (035+043+050+058)	034	290,891,627	314,836,491
	I. Inventory (036 up to 042)	035	54,643,708	67,230,411
	1 Materials and supplies	036	36,552,513	47,272,177
	2 Work in progress	037	4,063,333	4,771,688
	3 Finished goods	038	10,693,346	9,537,056
	4 Commercial goods	039	3,334,516	5,649,491
	5 Advances for inventories	040	0	0
	6 Long term assets held for sale	041	0	0
	7 Biological assets	042	0	0
	II. Receivables (044 up to 049)	043	184,053,868	236,928,725
	1 Receivables from associated undertakings	044	56,766,845	47,217,880
	2 Trade receivables	045	95,705,485	127,039,889
	3 Receivables from participating companies	046	4,150,673	24,278,362
	4 Receivables from employees and members of the business	047	132,133	239,998
	5 Receivables from government and other institutions	048	5,314,813	10,281,192
	6 Other receivables	049	21,983,920	27,871,405
	III. Current financial assets (051 up to 057)	050	48,160,740	5,450,323
	1 Shares in affiliated undertakings	051	0	0
	2 Loans to affiliates	052	0	4,444,520
	3 Participating interests (shares)	053	0	0
	4 Given loans to companies in which exist participating interests	054	0	0
	5 Investments in to securities	055	0	0
	6 Other loans, deposits etc	056	48,160,740	1,005,803
	7 Other financial assets	057	0	0
	IV. Cash at bank and in hand	058	4,033,311	5,227,033
D	PREPAYMENT AND ACCRUED INCOME	059	48,634,327	18,256,320
E	TOTAL ASSETS (001+002+034+059)	060	1,224,435,704	1,197,080,309

F OFF BALANCE SHEET ITEMS 061 4,738,178 5,276,461

A

C

as at 30.06.2017. Balance sheet Taxpayer: AD Plastik d.d.

	Item 1	AOP ind. 2	Preceding year 3	Current year 4
PASIVA
A	CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	665,718,184	700,785,370
	I. SUBSCRIBED SHARE CAPITAL	063	419,958,400	419,958,400
	II. CAPITAL RESERVES	064	191,565,301	191,565,301
	III. RESERVES FROM GAIN (066+067-068+069+070)	065	27,184,402	27,286,906
	1 Legal reserves	066	6,128,852	6,128,852
	2 Reserves for own shares	067	3,875,120	4,535,729
	3 Own stocks and shares (deductible item)	068	3,875,120	4,535,729
	4 Statutory reserves	069	0	0
	5 Other reserves	070	21,055,550	21,158,053
	IV. REVALUATION RESERVES	071	-11,336,615	-5,045,882
	V. RETAINED EARNINGS OR LOSS BROUGHT FORWARD (073-074)	072	0	38,346,696
	1 Retained earnings	073	0	38,346,696
	2 Loss brought forward	074	0	0
	VI. CURRENT YEAR PROFIT OR LOSS (076-077)	075	38,346,696	28,673,949
	1 Current year profit	076	38,346,696	28,673,949
	2 Current year loss	077	0	0
	VII. MINOR INTEREST	078	0	0
B	PROVISIONS (080 up to 082)	079	10,555,972	8,885,870
	1 Provisions for pensions, severance pay and similar obligations	080	2,102,178	2,102,178
	2 Provisions for tax liabilities	081	0	0
	3 Other provisions	082	8,453,794	6,783,692
C	LONG TERM LIABILITIES (084 up to 092)	083	174,412,368	171,742,657
	1 Liabilities to related parties	084	0	0
	2 Commitments for loans, deposits, etc	085	0	0
	3 Liabilities to banks and other financial institutions	086	162,353,095	163,432,392
	4 Liabilities for advances	087	0	0
	5 Trade payables	088	12,059,273	8,310,265
	6 Commitments on securities	089	0	0
	7 Liabilities to companies in which are participating interests	090	0	0
	8 Other long term liabilities	091	0	0
	9 Deferred tax liabilities	092	0	0
D	SHORT TERM LIABILITIES (094 do 105)	093	359,629,728	300,588,758
	1 Liabilities to related parties	094	5,453,585	8,319,619
	2 Commitments for loans, deposits, etc	095	0	0
	3 Liabilities to banks and other financial institutions	096	206,333,849	146,645,947
	4 Liabilities for advances	097	12,249,328	6,830,461
	5 Trade payables	098	124,374,987	126,447,304
	6 Commitments on securities	099	0	0
	7 Liabilities to companies in which are participating interests	100	82,009	0
	8 Liabilities towards employees	101	7,074,711	7,802,574
	9 Liabilities for taxes, contributions and other benefits	102	4,015,713	4,497,307
	10 Liabilities to share in the result	103	27,856	27,856
	11 Amount based on fixed assets intended to sale	104	0	0
	12 Other short-term liabilities	105	17,690	17,690
E	DEFERRED PAYMENT OF COSTS AND FUTURE INCOME	106	14,119,452	15,077,654
F	TOTAL LIABILITIES (062+079+083+093+106)	107	1,224,435,704	1,197,080,309
G	OFF BALANCE SHEET ITEMS	108	4,738,178	5,276,461

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: 01.01.2017. to 30.06.2017.

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	397,975,290	206,090,659	400,929,097	196,059,436
	1 Income from sales	112	393,966,842	203,847,486	394,464,845	192,647,084
	2 Other operating income	113	4,008,448	2,243,173	6,464,252	3,412,351
II.	OPERATING CHARGES (115+116+120+124+125+126+129+130)	114	373,398,612	193,932,224	377,377,486	186,414,192
	1 Changes in the value of inventories of work in progress and finished goods	115	1,598,970	1,253,861	447,936	-1,187,422
	2 Material charges (117 up to 119)	116	245,987,357	121,123,540	262,885,545	128,348,572
	a Costs of raw materials and consumables	117	191,224,084	93,210,946	188,865,521	88,684,394
	b Costs of sales	118	30,425,631	15,559,137	49,029,564	27,388,672
	c Other external charges	119	24,337,642	12,353,457	24,990,459	12,275,506
	3 Staff costs (121 up to 123)	120	62,981,951	31,509,971	62,279,279	30,549,742
	a Salaries and wages	121	37,789,171	18,905,982	38,703,867	19,400,372
	b Costs of taxes and social security	122	15,745,488	7,877,493	14,753,057	6,939,831
	c Duties on wages	123	9,447,293	4,726,496	8,822,354	4,209,540
	4 Depreciation	124	24,020,299	11,885,086	25,575,144	12,772,508
	5 Other costs	125	33,050,055	24,981,456	20,281,059	10,221,828
	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	0	0	2,505,921	2,505,921
	8 Other operating expenses	130	5,759,980	3,178,309	3,402,604	3,203,044
III.	FINANCIAL INCOME (132 up to 136)	131	31,704,940	13,193,592	31,493,369	11,529,860
	1 Interests, exchange rate difference, dividends with affiliates	132	2,425,456	1,269,489	5,185,620	2,478,731
	2 Interests, exchange rate difference, dividends with non-affiliates	133	6,139,116	5,040,782	5,320,405	-1,413,805
	3 Part of income from affiliates and participated interests	134	23,140,367	6,883,321	20,987,344	10,464,933
	4 Non-realized financial income	135	0	0	0	0
	5 Other financial income	136	0	0	0	0
IV.	FINANCIAL CHARGES (138 up to 141)	137	33,958,861	20,138,155	26,440,691	11,778,454
	1 Interests, exchange rate difference, dividends with affiliates	138	1,394,489	1,265,894	11,095,362	3,910,150
	2 Interests, exchange rate difference, dividends with non-affiliates	139	32,564,371	18,872,260	15,345,329	7,868,304
	3 Non-realized financial charges	140	0	0	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	429,680,229	219,284,251	432,422,466	207,589,295
X.	TOTAL CHARGES (114+137+143 + 145)	147	407,357,473	214,070,379	403,818,177	198,192,645
XI.	PROFIT OR LOSS BEFORE TAXATION (146-147)	148	22,322,756	5,213,873	28,604,289	9,396,650
	1 Profit before taxation (146-147)	149	22,322,756	5,213,873	28,604,289	9,396,650
	2 Loss before taxation (147-146)	150	0	0	0	0
XII.	PROFIT TAX	151	0	0	-69,660	-69,660
XIII	PROFIT OR LOSS FOR THE PERIOD (148-151)	152	22,322,756	5,213,873	28,673,949	9,466,310
	1 PROFIT FOR THE PERIOD (149-151)	153	22,322,756	5,213,873	28,673,949	9,466,310
	2 LOSS FOR THE PERIOD (151-148)	154	0	0	0	0

A

C

Profit and loss account Reporting period: 01.01.2017. to 30.06.2017.

V. OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD

Taxpayer: AD Plastik d.d.

	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
	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	22,322,756	5,213,873	28,673,949	9,466,310
II.	OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAXATION (159 up to 165)	158	3,015,632	3,015,632	0	0
	1 Exchange differences on translation of foreign operations	159	3,015,632	3,015,632	0	0
	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
	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	603,126	603,126	0	0

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

(157+167) ¹⁶⁸ 24,735,262 7,626,378 28,673,949 9,466,310

IV. OTHER COMPREHENSIVE NET PROFIT OR LOSS (158-166) 167 2,412,506 2,412,506 0 0

C

AD PLASTIK D.D.

CONTENTS

A

Taxpayer: AD Plastik d.d.

C

CASH FLOW FROM OPERATING ACTIVITIES
1 Profit before taxation	001	22,322,756	28,604,289
2 Depreciation	002	24,020,299	25,575,144
3 Increase of current liabilities	003	3,978,305	2,691,079
4 Decrease of current receivables	004	0	0
5 Decrease in stocks	005	1,994,931	0
6 Other increase of cash flow	006	30,264,853	37,534,125
I. Total increase of cash flow from operating activities (001 - 006)	007	82,581,145	94,404,637
1 Decrease of current liabilities	008	0	0
2 Increase of current receivables	009	35,214,919	79,138,931
3 Increase in stocks	010	0	12,586,702
4 Other decrease of cash flow	011	13,192,194	1,670,102
II. Total decrease of cash flow from operating activities (008 – 011)	012	48,407,113	93,395,735
A1 NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	013	34,174,032	1,008,902
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	3,531,596	893,064
2 Cash inflows from sale of ownership and debt instruments	016	128,500	0
3 Cash inflows from interest	017	136,606	12,232,087
4 Cash inflows from dividends	018	14,921,369	20,912,273
5 Other cash inflows from investment activities	019	615,000	47,113,517
III. Total cash inflows from investment activities (015-019)	020	19,333,072	81,150,941
1 Cash expenditures for purchase of fixed tangible and intangible assets	021	19,853,381	19,088,558
2 Cash expenditures for acquisition of ownership and debt instruments	022	0	0
3 Other cash expenditures from investment activities	023	0	0
IV. Total cash expenditures from investment activities (021-023)	024	19,853,381	19,088,558
B1 NET INCREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (020-024)	025	0	62,062,383
B2 NET DECREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (024-020)	026	520,309	0
CASH FLOW FROM FINANCIAL ACTIVITIES
1 Cash inflows from issuing ownership and debt financial instruments	027	0	0
2 Cash inflows from credit principal, debentures, loans and other borrowings	028	66,533,807	110,149,129
3 Other inflows from financial activities	029	0	0
V. Total cash inflows from financial activities (027-029)	030	66,533,807	110,149,129
1 Cash expenditures for the payment of credit principal and debentures	031	79,587,190	170,087,360
2 Cash expenditures for the payment of dividends	032	16,671,288	0
3 Cash expenditures for financial lease	033	972,053	1,939,331
4 Cash expenditures for repurchase of own shares	034	0	0
5 Other cash expenditures from financial activities	035	0	0
VI. Total cash expenditures from financial activities (031-035)	036	97,230,531	172,026,692
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	30,696,724	61,877,563
Total cash flow increase (013-014+025-026+037-038)	039	2,956,999	1,193,723
Total cash flow decrease (014-013+026-025+038-037)	040	0	0
Cash and cash equivalents at the beginning of the period	041	3,413,687	4,033,311
Cash and cash equivalents increase	042	2,956,999	1,193,723

Cash and cash equivalents decrease 043 0 0 Cash and cash equivalents at the end of the period 044 6,370,685 5,227,033

Item AOP ind. Preceding period Current period 1 2 3 4

Statement of changes in equity

Reporting period: 01.01.2017. to 30.06.2017. Taxpayer: AD Plastik d.d.

Item	AOP ind.	Preceding year	Current period
1 1 Subscribed capital	2 001	3 419,958,400	4 419,958,400
2 Capital reserves	002	183,075,797	191,565,301
3 Reserves from profit	003	27,592,011	27,286,906
4 Retained profit or loss carried over	004	32,550,662	38,346,696
5 Current year profit or loss	005	22,322,756	28,673,949
6 Revalorisation of fixed material assets	006	0	0
7 Revalorisation of intangible assets	007	0	0
8 Revalorisation of financial assets available for sale	008	0	0
9 Other revalorisation	009	-16,774,803	-5,045,882
10 Total equity and reserves (AOP 001-009)	010	668,724,823	700,785,370
11 Exchange rate variations from net investments into foreign business operations	011	3,015,632	0
12 Current and deferred taxes (part)	012	-603,126	69,660
13 Cash flow protection	013	0	0
14 Changes in bookkeeping policies	014	0	0
15 Correction of significant mistakes from the previous period	015	0	0
16 Other changes to capital	016	21,340,676	34,997,526
17 Total equity increase or decrease (AOP 011 - 016)	017	23,753,182	35,067,186
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 AOP codes 001 to 009 are entered as balance as at Balance Sheet date.

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Management's

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MANAGEMENT REPORT AD PLASTIK GROUP

CONTENTS

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D

Solin, July 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 June 30 2017, 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 June 30 2017, 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, JULY 2017 WWW.ADPLASTIK.HR