Granolio d.d.

Earnings Release • Jul 31, 2017

Consolidated financial results for the six months period ended 30 June 2017 (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 six months period of 2017

	1-6 2017	1-6 2016	promjena
Operating income	287.772	359.288	(71.516)	(20%)
Operating expenses	(299.582)	(351.049)	51.467	15%
EBIT	(11.810)	8.239	(20.049)	(243%)
EBIT margin	-4%	2%
EBITDA	4.365	23.692	(19.327)	(82%)
EBITDA margin	2%	7%
Net financial result	(12.429)	(13.807)	1.378	10%
Net result for the period	(24.239)	(5.568)	(18.671)	(335%)
Result attributable to the Group	(23.034)	(6.225)	(16.809)	(270%)
Minority interest	(1.205)	657	(1.862)	283%

in thousands of HRK

Comparing to the corresponding period last year, Group's business operations were less favourable in the first six months 2017 mainly due to lower margins and higher sales costs realised by the parent company.

Financial indicators in thousands of HRK 30.6.2017 31.12.2016 change Net assets (Capital and reserves)* 214.871 237.208 (22.337) (9%) Total debt 521.065 512.313 8.752 2% Cash and cash equivalents 1.024 9.729 (8.705) (89%) Given loans, deposits and similar** 51.114 34.648 16.466 48% Net debt 468.927 467.936 991 0% Net debt/ EBITDA 9,59 6,86 EBITDA for the last 12 months 48.896 68.223

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

** Given loans, securities and deposits including loan given to Agrokor trgovina in the amount od 9,9 million HRK

As at 30 June 2017, Group's assets included loan given to the company Agrokor trgovina d.o.o. in the amount 9,9 million HRK.

Other than receivables for the loan given, Group also has liability toward factoring companies in the amount of 85 million HRK, that are also the result of business relations with Agrokor group.

Due to current inability to settle it's due liabilities, in July 2017 mother company asked Commercial court to start a process of prebankrupcy settlement

Separate business results for the six months period of 2017

Granolio d.d.			in thousands of HRK
	1-6 2017	1-6 2016	change
Operating income	187.647	221.702	(34.052)	(15%)
EBIT	(10.348)	7.863	(18.211)	232%
margin %	(6%)	4%
EBITDA	(4.813)	12.957	(17.770)	(137%)
margin %	(3%)	6%
Net financial result	(11.979)	(12.786)	807	6%
Net result	(22.326)	(4.922)	(17.404)	(354%)
margin %	(11,9%)	(2,2%)

Comparing to the corresponding period last year, operating result (EBIT) was less favourable in the first six months 2017. This is the result of lower sales margins realised in the milling and trading segments.

Besides lower margins in these two segments, increase in sales costs, like transportation of goods, and increase in employees costs also contributed to the fall in operating result.

Zdenka - mliječni proizvodi d.o.o.	in thousands of HRK
	1-6 2017	1-6 2016	change
Operating income	72.722	79.074	(6.352)	(8%)
EBIT	636	1.508	(872)	58%
margin %	1%	2%
EBITDA	7.061	7.730	(669)	(9%)
margin %	10%	10%
Net financial result	(431)	(394)	(37)	(9%)
Net result	205	1.115	(910)	(82%)
margin %	0%	1%

In the first six months 2016 significant one-off deal was realised with one domestic customer. The same deal was not realized in six monthsf 2017, resulting with income decrease in the amount of HRK 6.5 million. Due to significant increase in prices of raw materials in 2017, the Company realized lower profit margins than in the same period last year which resulted in lower values of EBITDA and net result.

Žitar d.o.o. (konsolidirani) in thousands of HRK

	1-6 2017	1-6 2016	change
Operating income	21.688	76.169	(54.481)	(72%)
EBIT	(2.520)	411	(2.931)	(713%)
margin %	(12%)	1%
EBITDA	48	2.968	(2.920)	(98%)
margin %	0%	4%
Net financial result	(79)	(212)	133	63%
Net result	(2.599)	199	(2.798)	(1406%)
margin %	(12%)	0%

In the first six months 2016 significant one-off sale of wheat was realised in the total amount of HRK 40 million. Besides mentioned, income decreased in the six months 2017 also due to exemption of the following operating segments: milling, sale of sowing material and facility for production of animal feed out from the company's business operations. Operating segments were exempted from the Žitar company's business operations and taken over by the company's owners.

Zdenačka farma d.o.o.				in thousands of HRK
	1-6 2017	1-6 2016	change
Operating income	10.315	8.973	388	8%
EBIT	778	(1.097)	822	192%
margin %	8%	(12%)
EBITDA	2.214	270	848	328%
margin %	21%	3%
Net financial result	(416)	(387)	(26)	(13%)
Net result	363	(1.484)	796	128%
margin %	4%	(17%)

In the first six months 2017 total delivery of milk by Zdenačka farma amounted to 2,3 million kilos (in six months 2016: 2,4 million kilos). Average sales price realised in 2017 was 20% higher than average sales price realised in the same period last year, which was the main reason for better result realised in the six months 2017.

Prerada žitarica d.o.o. in thousands of HRK

	1-6 2017	1-6 2016		change
Operating income	16.171	276	15.895	5759%
EBIT	(355)	(436)	81	19%
margin %	(2%)	(158%)
EBITDA	(145)	(226)	81	(36%)
margin %	(1%)	(82%)
Net financial result	474	(27)	501	1856%
Net result	119	(463)	582	126%
margin %	1%	(168%)

Zbog trenutne nemogućnosti podmirivanja dospjelih obveza, krajem srpnja na računima Društva pokrenut je postupak prisilne naplate

Because of current inability of the Company to settle it's due liabilities, company's bank accounts are blocked since the end of July 2017 due to forced collection by creditors.

Employees

In the first six months 2017 the Group employed 451 employees based on man-hour basis (in the first six months 2016: 469 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 six months period 2017.

Annex 1. Reporting period	1.1.2017	to	30.6.2017
	Quarterly financial report TFI-POD
Tax number (MB): 01244272
Company registration number 080111595 (MBS):
59064993527 Personal identification number (OIB):
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:	467
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:
JASENKA KORDIĆ Contact person:
(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 30.06.2017

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	578.546.114	567.470.971 186.029.573
I. INTANGIBLE ASSETS (004 do 009) 1. Assets development	003 004	187.085.450 0	0
2. Concessions, patents, licenses, trademarks, service marks, software and other rights	005	121.010.211	120.787.334
3. Goodwill	006	60.379.072	60.379.072
4. Prepayments for purchase of intangible assets	007	0	0
5. Intangible assets in preparation	008	0	0
6. Other intangible assets	009	5.696.167	4.863.167
II. TANGIBLE ASSETS (011 do 019)	010	362.311.987	352.408.633
1. Land	011	27.668.452	27.716.234
2. Buildings	012	230.490.380	227.726.134
3. Plant and equipement 4. Tools, working inventory and transportation assets	013	67.677.246 3.297.415	63.017.280 3.222.930
5. Biological assets	014 015	10.626.471	10.588.123
6. Prepayments for tangible assets	016	259.709	357.741
7. Tangible assets in progress	017	21.777.202	19.266.038
8. Other tangible assets	018	83.112	82.153
9. Investments in buildings	019	432.000	432.000
III. LONG-TERM FINANCIAL ASSETS (021 do 030)	020	27.023.566	26.917.765
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 5. Investments in other securities of entrepreneurs in whom the entity holds participating interests	024	0	0 0
6. Loans, deposits and similar assets to entrepreneurs in whom the entity holds participating	025 026	0 0	0
7. Investments in securities	027	0	0
8. Loans, deposits and similar assets	028	6.551.376	6.445.575
9. Other investments accounted by equity method	029	0	0
10. Other long - term financial assets	030	20.472.190	20.472.190
IV. RECEIVABLES (032 do 035)	031	25.111	15.000
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 V. DEFERRED TAX ASSET	035	25.111 2.100.000	15.000 2.100.000
C) SHORT TERM ASSETS (038+046+053+063)	036 037	414.454.289	386.364.045
I. INVENTORIES (039 do 045)	038	90.701.654	73.131.227
1. Raw materials and supplies	039	24.362.650	17.668.182
2. Work in progress	040	8.917.080	15.901.757
3. Finished goods	041	29.038.079	26.997.012
4. Merchandise	042	28.368.130	12.545.812
5. Prepayments for inventories	043	15.715	18.464
6. Long term assets held for sale	044	0	0
7. Biological assets	045	0	0 267.541.070
II. RECEIVABLES (047 do 052) 1. Receivables from related parties within the Group	046 047	285.925.497 330.668	328.875
2. Receivables from participating parties	048	0	0
3. Accounts receivable	049	167.141.969	171.725.819
4. Receivables from employees and members of related parties	050	10.786	34.006
5. Receivables from government and other institutions	051	10.863.809	5.228.099
6. Other receivables	052	107.578.265	90.224.271
III. SHORT TERM FINANCIAL ASSETS (054 do 062)	053	28.097.767	44.667.272
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	20.558.658	20.518.658 0
4. Investments (shares) with entrepreneurs in whom the entity holds participating interests 5. Investments in other securities of entrepreneurs in whom the entity holds participating interests	057 058	0 0	0
6. Loans, deposits and similar assets to entrepreneurs in whom the entity holds participating	059	0	0
7. Investments in securities	060	881.994	347.523
8. Loans, deposits and similar assets	061	6.657.115	23.801.091
9. Other financial assets	062	0	0
IV. CASH AND CASH EQUIVALENTS	063	9.729.371	1.024.476
D) PREPAID EXPENSES AND ACCRUED REVENUE	064	4.600.594	4.572.007
E) TOTAL ASSETS (001+002+037+064)	065	997.600.997	958.407.023
F) OFF-BALANCE RECORDS	066	23.560.428	20.668.704

EQUITY AND LIABILITIES
A) ISSUED CAPITAL AND RESERVES (068 do 070+076+077+081+084+087)	067	237.208.256	214.870.313
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	1.083.227	1.208.554
1. Reserves prescribed by law	071	283.227	408.554
2. Reserves for treasury shares	072	800.000	800.000
3. Treasury shares (deductible items)	073
4. Statutory reserves	074
5. Other reserves	075
IV. REVALUATION RESERVES	076	61.561.956	61.609.089
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	7.812.413	11.947.709
1. Retained earnings	082	7.812.413	11.947.709
2. Accumulated loss	083
VI. PROFIT/LOSS FOR THE CURRENT YEAR (085-086)	084	2.406.268	-23.034.101
1. Profit for the current year	085	2.406.268
2. Loss for the current year	086		23.034.101
VII. MINORITY (NON-CONTROLLING) INTEREST	087	61.141.415	59.936.085
B) PROVISIONS (089 do 094)	088	0	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		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	351.567.682	349.837.984
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	11.337	11.110
6. Liabilities to banks and other financial institutions	101	335.953.544	336.090.616
7. Liabilities for received prepayments	102	0	0
8. Accounts payable	103	212.312	212.312
9. Liabilities arising from debt securities	104	0	0
10. Other long-term liabilities	105	0	0
11. Deferred tax liability	106	15.390.489	13.523.946
D) SHORT - TERM LIABILITIES (108 do 121)	107	396.020.238	381.684.013
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	136.578.173	133.311.306
7. Liabilities for received prepayments	114	3.653.467	1.601.911
8. Accounts payable	115	103.073.841	111.151.679
9. Liabilities arising from debt securities	116	39.770.000	51.652.000
10. Liabilities to employees	117	2.521.343	2.225.618
11. Liabilities for taxes, contributions and similar fees	118	6.830.478	4.742.827
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	103.592.936	76.998.672
E) DEFFERED SETTLEMENTS OF CHARGES AND INCOME DEFERRED TO FUTURE PERIOD	122	12.804.821	12.014.713
F) TOTAL – CAPITAL AND LIABILITIES (067+088+095+107+122)	123	997.600.997	958.407.023
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	176.066.841	154.934.227
2. Attributable to non-controlling interest	126	61.141.415	59.936.085

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

Income statement

period 01.01.2017 to 30.06.2017

Company: GRANOLIO d.d. Position	AOP		Previous period		Current period
		Cummulative	Quarter	Cummulative	Quarter
1 I. OPERATING REVENUE (125+130)	2 125	3 359.288.020	4 156.869.442	5 287.771.957	6 128.319.693
1. Sales revenue with related parties within the Group	126	0	0	0	0
2. Sales revenue (third parties) 3. Revenue from the use of own products, goods and services	127 128	348.016.335 1.155.610	150.435.436 577.409	279.289.112 1.069.523	124.742.996 521.551
4. Other operating revenue with related parties within the Group	129	0	0	0	0
5. Other operating revenue (third parties)	130	10.116.075	5.856.597	7.413.322	3.055.146
II. OPERATING COSTS (132+133+137+141+142+143+146+153) 1. Changes in value of work in progress and finished products	131 132	351.048.815 -812.505	152.677.744 -7.397.930	299.581.452 -5.410.336	133.703.863 788.860
2. Material costs (133 do 136)	133	303.951.523	136.211.857	255.728.151	110.141.240
a) Raw material and material costs	134	151.653.056	69.036.267	134.092.373	60.893.204
b) Cost of goods sold c) Other external costs	135 136	129.233.934 23.064.533	55.066.006 12.109.584	100.009.243 21.626.535	38.402.481 10.845.555
3. Staff costs (138 do 140)	137	22.025.091	11.134.544	21.825.119	10.284.255
a) Net salaries and wages b) Tax and contributions from salary expenses	138 139	13.389.944 5.398.399	6.761.564 2.729.952	13.568.338 5.037.408	6.490.081 2.275.580
c) Contributions on gross salaries	140	3.236.748	1.643.028	3.219.373	1.518.594
4. Depreciation and amortisation	141	15.433.206	7.739.372	16.174.437	8.029.696
5. Other costs	142	4.080.405	2.313.978	3.932.498	1.511.724
6. Impairment (144+145) a) Impairment of long-term assets (financial assets excluded)	143 144	19.331 0	1.250 0	0 0	0 0
b) Impairment of short - term assets (financial assets excluded)	145	19.331	1.250
7. Provisions (147 do 152)	146				0
a) Provisions for pensions, severance paments and similar liabilities b) Provisions for tax liabilities	147 148	0 0	0 0	0 0	0 0
c) Provisions for ongoing legal cases	149	0	0	0	0
d) Provisions for costs of natural resources refurbishment e) Provisions for guarantees costs	150	0 0	0 0	0 0	0 0
f) Other provisions	151 152	0	0	0	0
8. Other operating costs	153	6.351.764	2.674.673	7.061.584	2.948.088
III. FINANCIAL INCOME (155 do 164) 1. Income from investment in shares of related parties within the Group	154 155	2.388.969 0	706.519 0	3.713.282 0	1.458.870 0
2. Income from investment in shares of entrepreneurs in whom the entity holds participating interest	156	0	0	0	0
3. Income from other long-term financial investments and loans granted to related parties within the	157
4. Other income arising from interest with related parties within the Group 5. Foreign exchange gains and similar financial income with related parties within the Group	158 159	0 0	0 0	0 0	0 0
6. Income from other long-term financial investments and loans	160	94.346	11.121	413.813	385.185
7. Other income arising from interest	161	447.442	193.414 237.203	64.067 2.151.683	43.963 586.361
8. Foreign exchange gains and similar financial income 9. Unrealized gains (income) from financial assets	162 163	1.582.401 0	0	0	0
10. Other financial income	164	264.781	264.781	1.083.719	443.361
IV. FINANCIAL EXPENSES (166 do 172) 1. Expenses arising from interests and similar expenses with related parties within the Group	165 166	16.195.531 0	7.723.239 0	16.143.218 0	7.348.958 0
2. Foreign exchange losses and similar financial expenses with related parties within the Group	167	0	0	0	0
3. Expenses arising from interest and similar expenses	168	15.276.038	7.539.314	15.475.282	7.137.434
4. Foreign exchange losses and similar financial expenses 5. Unrealized losses (expenses) on financial assets	169 170	824.625 0	177.400 0	636.473 0	207.869 0
6. Financial assets impairment (net)	171	60.000	0	0	0
7. Other financial expenses	172	34.868	6.525	31.463	3.655
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
IX. TOTAL INCOME (125+164+173 + 174)	176 177	361.676.989	157.575.961	291.485.239	129.778.563
X. TOTAL EXPENSES (131+165+175 + 176)	178	367.244.346	160.400.983	315.724.670	141.052.821
XI. PROFIT OR LOSS BEFORE TAXES (177-178) 1. Profit before taxes (177-178)	179 180	-5.567.357 0	-2.825.022 0	-24.239.431 0	-11.274.258 0
2. Loss before taxes (178-177)	181	5.567.357	2.825.022	24.239.431	11.274.258
XII. PROFIT TAX	182		-2.825.022	-24.239.431	-11.274.258
XIII. PROFIT OR LOSS FOR THE PERIOD (179-182) 1. Profit for the period (179-182)	183 184	-5.567.357 0	0	0	0
2. Loss for the period (182-179)	185	5.567.357	2.825.022	24.239.431	11.274.258
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	186	11.149.793	13.515.169	2.452.044	5.520.100
2. Attributable to non-controlling interest	187	4.919.003	2.451.632	2.635.861	1.455.050
STATEMENT OF OTHER COMPREHENSIVE INCOME (only for IFRS adopters) I. PROFIT OR LOSS FOR THE PERIOD	188	-5.567.357	-2.825.022	-24.239.431	-11.274.258
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 6. Share in other comprehensive income / loss in participating interests	194 195
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	-5.567.357	-2.825.022	-24.239.431	-11.274.258
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	-6.224.762	-2.975.612	-23.034.100	-10.392.562
2. Attributed to non-controlling interest	202	4.919.003	2.451.632	-1.205.330	-881.695

Cash flow statement - indirect method period 01.01.2017 to 30.06.2017

Company: GRANOLIO d.d.
Position	AOP	Previous	Current period
1	2	period 3	4
CASH FLOWS FROM OPERATING ACTIVITIES
1. Profit before tax	001	(5.567.357)	(23.057.645)
2. Adjustments (003 do 010)	002	25.724.534	23.946.808
a.) Depreciation and amortisation	003	15.433.206	16.175.437
b.) Gains and losses from sale and impairment of long-term tangible and
intangible assets	004	(828.945)	(1.077.621)
c.) Gains and losses from sale and unrealised gains or losses and
impairment of financial assets	005	(591.420)	(792.367)
d.) Interest and dividend income	006	(562.292)	(477.880)
e.) Interest expense	007	14.960.273	15.475.256
f.) Provisions	008
g .) Foreign exchange differences (unrealised)	009	(1.057.432)	(1.775.073)
h.) Other adjustments for non-cash transactions and unrealised gains and
losses	010	(1.628.857)	(3.580.943)
I. Cash flow increase or decrease before changes in working capital (001
do 002)	011	20.157.177	889.163
3. Working capital changes ( 013 do 016)	012	458.411	31.069.748
a.) Increase or decrease in short term liabilities	013	(23.921.041)	(6.902.192)
b.) Increase or decrease in short term receivables	014	(14.774.139)	20.218.396
c.) Increase or decrease in inventories	015	39.153.591	17.753.544
d.) Other increase or decrease in working capital	016
II. Cash from operations (011+012)	017	20.615.588	31.958.911
4. Interest paid	018	(15.057.633)	(9.694.762)
5. Income tax paid	019	(3.728.352)	(1.199.045)
A) NET CASH FLOW FROM OPERATING ACTIVITIES (017 do 019)	020	1.829.603	21.065.104
CASH FLOW FROM INVESTING ACTIVITIES
1. Cash inflows from sales of long-term tangible and intangible assets	021	219.229	242.394
2. Cash inflow from sale of financial instruments	022	(40.000)	1.435.851
3. Interest received	023	567.224	767.626
4. Dividend received	024	19.794
5. Cash inflow from repayment of loans given and savings deposits	025	25.850.255	4.754.735
6. Other cash inflows from investing activities	026	65.885
III. Total cash inflows from investing activities (021 do 026)	027	26.682.387	7.200.606
1. Cash outflow for purchase of long-term tangible and intangible assets	028	(8.420.330)	(4.464.061)
2. Cash outflow for acquisition of financial instruments	029
3. Cash outflow for granting loans and other borrowings in the given period	030	(42.037.611)	(21.837.319)
4. Aquisition of subsidiaries net of cash acquired	031
5. Other cash outflow for investing activities	032		(180.161)
IV. Total cash outflow for investing activities (028 do 032)	033	(50.457.941)	(26.481.541)
B) NET CASH FLOW FROM INVESTING ACTIVITIES (027+033)	034	(23.775.554)	(19.280.935)
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	036
3. Cash proceeds from loan principals, promissory notes and other borrowings	037	193.557.283	97.577.451
4. Other proceeds from financial activities	038		52.319
V. Total cash inflows from financial activities (027 do 029)	039	193.557.283	97.629.770
1. Cash outflow for repayment of loan principals, promissory notes and other	040	(163.134.973)	(97.531.239)
borrowings
2. Cash outflow for dividend paid	041	(950.822)	(1.181.786)
3. Cash outflow for financial lease	042	(1.785.901)	(1.287.814)
4. Cash outflow for purchase of treasury shares and decrease of share (subscribed) capital	043
5. Other cash outflow for financing activities	044	(24.744.116)	(8.118.000)
VI. Total cash outflow for financing activities (031 do 035)	045	(190.615.812)	(108.118.839)
C) NET CASH FLOW FROM FINANCING ACTIVITIES	046	2.941.471	(10.489.069)
1. Unrealised foreign exchange differences in cash and cash equivalents	047
D) NET INCREASE OR DECREASE IN CASH FLOW (020+034+046+047)	048	(19.004.480)	(8.704.900)
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	049
F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	050	(19.004.480)	(8.704.900)
(048+049)

Statement of changes in equity Obrazac POD-PK 01.01.2017-30.06.2017

POD-PK

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 sale	Efficient part of cash flow hedging	Efficient part of hedging of a net investment	Retained earnings / accumulate d loss	Profit / loss for the current year	Total attributable to the equity holders of the parent	(non controlling) interest	Total capital and reserves
1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	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	84.186.547	183.484					64.473.012					-5.125.636 11.149.793 173.883.630 58.630.686 232.514.316
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	84.186.547	183.484	0	0	0		0 64.473.012		0 0			0 -5.125.636 11.149.793 173.883.630 58.630.686 232.514.316
5. Profit / loss for the period	05															-6.224.762 -6.224.762		657.405 -5.567.357
6. Exchange differences on translation of foreign operations	06															0		0
7. Changes in revaluation reserves of long-term tangible and intangible assets	07									-1.455.528				1.455.528		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															0		0
12. Actuarial gains / losses on defined benefit plans	12															0		0
13. Other changes in equity non related to ownership	13													-4.615		-4.615	6.462	1.847
14. Tax recognised directly in equity	14													376.094		376.094		376.094
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													-950.822		-950.822		-950.822
20. Other distribution of profits to the owners	20															0		0
21. Transfer to reserves by annual schedule	21				99.743	800.000									10.250.050 -11.149.793	0		0
22. Increase in reserves arising from pre-bankruptcy settlements	22															0		0
23. Balance as at 30 Yune of the prior period (04 do 22)	23		19.016.430	84.186.547	283.227	800.000	0	0		0 63.017.484		0 0			0 6.000.599 -6.224.762 167.079.525 59.294.553 226.374.078
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 -1.455.528		0 0		0 1.827.007	0	371.479	6.462	377.941
II. COMPREHENSIVE INCOME OR LOSS OF THE PRIOR PERIOD (AOP 05+24)	25		0	0		0 0	0	0		0 -1.455.528		0 0			0 1.827.007 -6.224.762 -5.853.283			663.867 -5.189.416
III. TRANSACTIONS WITH THE OWNERS OF THE PRIOR PERIOD RECOGNISED DIRECTLY IN EQUITY (AOP 15 to 22)	26		0	0	99.743	800.000	0	0		0 0		0 0			0 9.299.228 -11.149.793	-950.822	0	-950.822

Statement of changes in equity Obrazac POD-PK 01.01.2017-30.06.2017

POD-PK

Position	AOP									Attributable to the equity holders of the parent
		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 sale	Efficient part of cash flow hedging	Efficient part of hedging of a net investment	Retained earnings / accumulate d loss	Profit / loss for the current year	Total attributable to the equity holders of the parent	Minority (non controlling) interest	Total capital and reserves
1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	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	283.227	800.000	0	0		0 61.561.956	0	0		0 7.812.413		2.406.269 176.066.842 61.141.415 237.208.257
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	283.227	800.000	0	0		0 61.561.956	0	0		0 7.812.413		2.406.269 176.066.842 61.141.415 237.208.257
5. Profit / loss for the period	31															-23.034.101 -23.034.101 -1.205.330 -24.239.431
6. Exchange differences on translation of foreign operations	32															0		0
7. Changes in revaluation reserves of long-term tangible and intangible assets	33									-1.491.916				1.491.916		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													34.944		34.944		34.944
14. Tax recognised directly in equity	40									1.539.049				327.494		1.866.543		1.866.543
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															0		0
20. Other distribution of profits to the owners	46															0		0
21. Transfer to reserves by annual schedule	47				125.327										2.280.942 -2.406.269	0		0
22. Increase in reserves arising from pre-bankruptcy settlements	48															0		0
23. Balance as at 30 Yune of the current period (04 do 22)	49		19.016.430	84.186.547	408.554	800.000	0	0		0 61.609.089	0	0				0 11.947.709 -23.034.101 154.934.228 59.936.085 214.870.313
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 47.133	0	0		0 1.854.354		0 1.901.487		0 1.901.487
II. COMPREHENSIVE INCOME OR LOSS OF THE CURRENT PERIOD (AOP 31 + 50)	51		0	0		0	0 0	0		0 47.133	0	0				0 1.854.354 -23.034.101 -21.132.614 -1.205.330 -22.337.944
III. TRANSACTIONS WITH THE OWNERS OF THE CURRENT PERIOD RECOGNISED DIRECTLY IN EQUITY (AOP 41 to 48)	52		0	0	125.327		0 0	0		0 0	0	0			0 2.280.942 -2.406.269		0 0	0