Granolio d.d.

Quarterly Report • Oct 31, 2017

Unconsolidated financial results for the nine months period ended 30 September 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.

The Company has General Assembly, Supervisory Board and Management Board.

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. 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.

The Company also holds minority interests in the Žitozajednica d.o.o., Zagrebačke pekarne Klara d.o.o. and Prehrana trgovina d.d. companies.

Granolio d.d. Zdenačka farma d.o.o. 100% Prerada Žitarica d.o.o. 100% Zdenka mliječni proizvodi d.o.o. 50% Žitar d.o.o. 49,69% Žitar konto d.o.o. 100%

Ownership in subsidiaries is presented in the organizational chart below:

Significant business events in the accounting period

As at 30 September 2017 the Company's financial assets comprised loan given to Agrokor trgovina d.o.o. in the amount 9,9 million HRK. Total amount is due for payment.

Other than forementioned loan given, Company has liabilities to financial institutions in the amount of 20 million HRK and liabilities to factoring companies in the amount of 65 million HRK, resulting from business relations with Agrokor group.

Due to current inability to settle it's due liabilities, in July 2017 the Company asked Commercial court to start a process of pre-bankruptcy settlement. On 27 July 2017, Commercial court reached a decision on beginning of the pre-bankruptcy settlement process over Granolio d.d.

A hearing over examining the claims was held on 19 October 2017 and court is expected to issue a decision on established and disputed claims.

At the beginning of September 2017, Privredna banka Zagreb has sent a Statement on cancellation of a long-term syndicated loan by which total liability for both principal and interest became due 3 working days after the Statement was sent. Total liability for the principal amounted to 278,5 million HRK. Since the pre-bankruptcy process is in progress, the Company did not state total liability as a current loan. Therefore, in the Statement of financial position as at 30 September 2017, syndicated loan was stated in non-current liabilities in the amount of 263 million HRK and in current liabilities in the amount of 15 million HRK.

As at 10 October 2017, Privredna banka Zagreb transferred its receivables from Granolio d.d., which amounted to 116,6 million HRK at 31 August 2017, to the company B2 KAPITAL d.o.o.

Company's financial indicators for the nine months of 2017

				In thousands HRK
			promjena
Granolio d.d.	1-9 2017	1-9 2016
Operating income	267.922	395.256	(127.334)	(32%)
Operating expenses	276.530	376.786	(100.257)	(27%)
EBIT	(8.608)	18.470	(27.078)	(147%)
EBIT margin	-3%	5%
EBITDA	(414)	26.149	(26.563)	(102%)
EBITDA margin	0%	7%
Net financial result	(17.804)	(19.197)	1.393	(7%)
Net result for the period	(26.412)	(727)	(25.684)	(3531%)

*EBITDA= EBIT + depreciation + impairment expenses

In the nine months period 2017 more infavourable operating result (EBIT) has been realised compared to the same period last year. This is the result of lower sales volumes and lower sales margins in segments flour and trading.

Net financial result represents the difference between financial revenues and financial expenses.

		In thousands HRK
Granolio d.d.	30.9.2017	31.12.2016	Change
Net asset (capital and reserves)	147.756	172.138	(24.382)	(14%)
Totad debt to financial institutions	393.038	402.444	(9.406)	(2%)
Cash and cash equivalents	1.929	9.300	(7.371)	(79%)
Loans given, deposits etc.*	63.924	47.772	16.152	34%
Net debt	327.185	345.372	(18.187)	(5%)
Net debt/ EBITDA	25,05	8,72	16	187%
EBITDA for the last 12 months	13.062	39.625	(26.563)	(67%)

In the first nine months 2017, total debt to financial institutions is decreased by net 9 million HRK. Liabilities for bank loans are decreased while increase in liabilities to financial institutions refers to issued financial credit notes. Increase in credit notes liabilities is related to regressive liabilities to the companies in Agrokor concern in the amount of 20 million HRK.

Remaining regressive liabilities as at 30 September 2017 amount 65 million HRK and are stated within other current liabilities.

All forementioned regressive liabilities are related to business relations with the Agrokor group and as at 30 September 2017 amount to 85 million HRK.

Note: in the calculation of Net debt, total debt comprises only liabilities to financial institutions and not liabilities to companies members of Granolio Group (36 million HRK), while Loans given figure comprises loans given to companies within Granolio group (19 million HRK).

Overview of the business operations for the nine months of 2017 per business segments

The Company monitors its business operations through four business segments:

• 1. Flour
• 1. Sowing material (wholesale of: fertilizers, protective materials and seeds)
• 1. Trading (wholesale of grains, oil crops and bakery products)
• 1. Other (rendering services of storage, drying and reception of grains and oil crops at the reception stations, cattle breeding, other)

Sales income per business segments is shown by the following chart:

Flour

Decrease in income from sales of flour is the result of lower sales volume and lower sales prices. Average sales price in the nine months period 2017 is 4% lower than the average sales price of flour in the same period in 2016.

Average value of basic raw material (wheat) used in the production is higher in the nine months period 2017 compared to the same period last year by 1,5%.

Everything above implies that the sales margins made in the flour segment are lower than those made in the same period last year.

Sowing material

Income from sale of sowing material is at almost the same level as in the comparing period.

Trading

Trading segment has made decreased sales in the nine months period 2017 compared to the nine months period 2016 by 60%. The most significant fall is made in sales of wheat.

Other

Sales income in the Other segment is comprised of re-invoiced transportation and fuel costs, income from rendering the service of goods reception at the reception stations, income from storage and drying goods, and income from cattle breeding. It is important to state that silo is used to meet needs of segments Flour and Trading. income in the nine months period 2017 is lower compared to the previous period because in 2017 the volume of re-invoicing income is lower. Income generated by drying and goods reception is subjected to seasonality and is mainly realized in the second half of the year. It is also closely related to the segment Trading, i.e. purchase of crops for the purpose of further sales.

Employees

In the nine months period 2017 the Company employed 178 employees based on man-hour basis (in the nine months period 2016: 164 employees)

Redemption of treasury shares

Based on the General Assembly decision as of 9 June 2016 the Company has transferred a portion of the profit earned in 2015 into the equity reserves for treasury shares in the amount of HRK 800 thousand.

Up to the publication of the Management Board report, the Company was not engaged in any activities relating to the redemption of own shares

Environment

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

Other

Supervisory Board has approved Company's financial statements for the nine months period of 2017.

Annex 1.
Reporting period		1.1.2017	to		30.9.2017
			Quarterly financial report TFI-POD
Tax number (MB):	01244272
Company registration number
(MBS):	080111595
Personal identification	59064993527
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:	179
Consolidated report:	NO				(period end) NKD code:	1061
Companies of the consolidation subject (according to IFRS):			Seat:		MB:
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)
	Documentation for public disclosure:
notes to the financial statements)	1. Financial statements (balance sheet, income statement, cash flow statement, statement of changes in equity,
	2. Non-consolidated financial results for the 12 months period ended 31 December 2016,
					3. Management Board statement of liability and Statements of responsibility of executives responsible for preparing
financial statements.
		L.S.			(signature of the person authorized to represent the company)

Balance Sheet

as of 30.09.2017

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	462.073.661	455.738.466
I. INTANGIBLE ASSETS (004 do 009)	003	186.475.266	185.216.483
1. Assets development	004
2. Concessions, patents, licenses, trademarks, service marks, software and other rights	005	120.400.027	120.390.744
3. Goodwill	006	60.379.072	60.379.072
4. Prepayments for purchase of intangible assets	007
5. Intangible assets in preparation	008
6. Other intangible assets	009	5.696.167	4.446.667
II. TANGIBLE ASSETS (011 do 019)	010	139.189.258	134.115.410
1. Land	011	8.182.140	8.303.370
2. Buildings	012	110.565.819	109.889.334
3. Plant and equipement	013	16.479.891	14.827.996
4. Tools, working inventory and transportation assets	014	1.155.288	994.251
5. Biological assets	015
6. Prepayments for tangible assets 7. Tangible assets in progress	016		24.225
8. Other tangible assets	017 018	2.729.289 76.831	76.234
9. Investments in buildings	019
III. LONG-TERM FINANCIAL ASSETS (021 do 030)	020	136.384.026	136.391.573
1. Investments (shares) with related parties within the Group	021	115.254.813	115.254.813
2. Investments in other securities of related parties within the Group	022
3. Loans, deposits and similar assets to related parties within the Group	023
4. Investments (shares) with entrepreneurs in whom the entity holds participating interests	024
5. Investments in other securities of entrepreneurs in whom the entity holds participating interests	025
6. Loans, deposits and similar assets to entrepreneurs in whom the entity holds participating	026
7. Investments in securities	027
8. Loans, deposits and similar assets	028	667.523	675.070
9. Other investments accounted by equity method	029
10. Other long - term financial assets	030	20.461.690	20.461.690
IV. RECEIVABLES (032 do 035)	031	25.111	15.000
1. Receivables from related parties within the Group	032
2. Receivables from participating parties	033
3. Accounts receivable	034
4. Other receivables	035	25.111	15.000
V. DEFERRED TAX ASSET	036
C) SHORT TERM ASSETS (038+046+053+063)	037	323.703.646	312.011.214
I. INVENTORIES (039 do 045)	038	32.553.845	18.538.025
1. Raw materials and supplies	039	8.359.133	7.450.586
2. Work in progress	040	570.661	654.288
3. Finished goods	041	1.783.385	1.814.498
4. Merchandise	042	21.840.666	8.618.653
5. Prepayments for inventories 6. Long term assets held for sale	043
7. Biological assets	044 045
II. RECEIVABLES (047 do 052)	046	234.745.407	228.295.507
1. Receivables from related parties within the Group	047	27.583.830	40.114.898
2. Receivables from participating parties	048
3. Accounts receivable	049	100.499.078	93.125.821
4. Receivables from employees and members of related parties	050	7.342	972
5. Receivables from government and other institutions	051	1.747.620	2.358.771
6. Other receivables	052	104.907.537	92.695.045
III. SHORT TERM FINANCIAL ASSETS (054 do 062)	053	47.104.112	63.248.733
1. Investments (shares) with related parties within the Group	054
2. Investments in other securities of related parties within the Group	055
3. Loans, deposits and similar assets to related parties within the Group	056	39.918.768	39.653.936
4. Investments (shares) with entrepreneurs in whom the entity holds participating interests	057
5. Investments in other securities of entrepreneurs in whom the entity holds participating interests	058
6. Loans, deposits and similar assets to entrepreneurs in whom the entity holds participating	059
7. Investments in securities	060	881.994	178.281
8. Loans, deposits and similar assets	061	6.303.350	23.416.516
9. Other financial assets	062
IV. CASH AND CASH EQUIVALENTS	063	9.300.282	1.928.949
D) PREPAID EXPENSES AND ACCRUED REVENUE	064	4.370.100	2.964.331
E) TOTAL ASSETS (001+002+037+064)	065	790.147.407	770.714.011
F) OFF-BALANCE RECORDS	066	4.091.915	10.203.918

EQUITY AND LIABILITIES
A) ISSUED CAPITAL AND RESERVES (068 do 070+076+077+081+084+087)	067	172.137.809	147.756.480
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	60.863.131
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	3.783.114	8.893.437
1. Retained earnings	082	3.783.114	8.893.437
2. Accumulated loss	083
VI. PROFIT/LOSS FOR THE CURRENT YEAR (085-086)	084	2.506.535	-26.411.619
1. Profit for the current year	085	2.506.535
2. Loss for the current year	086		26.411.619
VII. MINORITY (NON-CONTROLLING) INTEREST	087
B) PROVISIONS (089 do 094)	088	0	0
1. Provisions for pensions, severance pay and similar libabilities	089
2. Provisions for tax liabilities	090
3. Provisions for ongoing legal cases	091
4. Provisions for costs of natural resources regeneration	092
5. Provisions for guarantees costs	093
6. Other provisions	094
C) LONG - TERM LIABILITIES (096 do 106)	095	283.173.339	277.560.484
1. Liabilites to related parties within the Group	096
2. Liabilities for loans, deposits, etc. to related parties within the Group	097
3. Liabilities to entrepreneurs in whom the entity holds participating interests
4. Liabilities for loans, deposits, etc. to entrepreneurs in whom the entity holds participating	098 099
5. Liabilities for loans, deposits, etc.	100
6. Liabilities to banks and other financial institutions			264.200.285
7. Liabilities for received prepayments	101	267.782.850
8. Accounts payable	102
9. Liabilities arising from debt securities	103
10. Other long-term liabilities	104
11. Deferred tax liability	105		13.360.199
	106	15.390.489	345.050.693
D) SHORT - TERM LIABILITIES (108 do 121)	107	334.356.996
1. Liabilites to related parties within the Group	108	2.065.328	7.918.758
2. Liabilities for loans, deposits, etc. to related parties within the Group	109	11.903.566	32.222.298
3. Liabilities to entrepreneurs in whom the entity holds participating interests	110
4. Liabilities for loans, deposits, etc. to entrepreneurs in whom the entity holds participating	111
5. Liabilities for loans, deposits, etc.	112
6. Liabilities to banks and other financial institutions	113	94.891.018	81.287.451
7. Liabilities for received prepayments	114	3.615.967	3.041.585
8. Accounts payable	115	73.823.782	93.903.220
9. Liabilities arising from debt securities	116	39.770.000	47.550.600
10. Liabilities to employees	117	1.172.827	986.799
11. Liabilities for taxes, contributions and similar fees	118	4.145.359	1.115.875
12. Liabilities to share - holders	119
13. Liabilities for long-term assets held for sale	120
14. Other short - term liabilities	121	102.969.149	77.024.107
E) DEFFERED SETTLEMENTS OF CHARGES AND INCOME DEFERRED TO FUTURE PERIOD	122	479.263	346.355
F) TOTAL – CAPITAL AND LIABILITIES (067+088+095+107+122)	123	790.147.407	770.714.012
G) OFF-BALANCE RECORDS	124	4.091.915	10.203.918
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
2. Attributable to minority interest	126

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

Income statement

period 01.01.2017 to 30.09.2017

Position	AOP		Previous period		Current period
		Cummulative	Quarter	Cummulative	Quarter
1	2	3	4	5	6
I. OPERATING REVENUE (125+130)	125	395.255.925	173.554.826	267.921.760	80.275.040
1. Sales revenue with related parties with the Group	126	20.275.933	16.021.815	11.769.424	4.726.127
2. Sales revenue (other parties)	127	369.449.047	155.763.475	254.817.111	75.103.391
3. Revenue from the use of own products, goods and services	128	8.383	4.894	4.412	1.112
4. Other operating revenue with related parties with the Group	129
5. Other operating revenue (other parties)	130	5.522.562	1.764.642	1.330.813	444.410
II. OPERATING COSTS (132+133+137+141+142+143+146+153)	131	376.786.308	162.945.148	276.529.695	78.535.284
1. Changes in value of work in progress and finished products	132	1.084.519	332.699	-155.339	-1.193.661
2. Material costs (133 do 136)	133	343.950.867	152.012.856	246.186.577	71.161.708
a) Raw material and material costs	134	161.103.551	58.096.913	118.956.259	40.536.279
b) Cost of goods sold	135	159.749.115	82.374.830	108.549.608	24.588.930
c) Other external costs	136	23.098.201	11.541.113	18.680.710	6.036.499
3. Staff costs (138 do 140)	137	16.489.014	5.600.509	15.696.173	4.463.379
a) Net salaries and wages	138	9.375.974	3.176.293 1.610.506	9.469.015 3.931.903	2.782.463 1.025.709
b) Tax and contributions from salary expenses c) Contributions on gross salaries	139	4.723.401	813.710	2.295.255	655.207
	140	2.389.639
4. Depreciation and amortisation	141	7.679.741	2.586.187	8.193.885	2.659.010
5. Other costs	142	3.091.329	1.132.676	2.547.834	747.232
6. Impairment (144+145)	143	0	0	0	0
a) Impairment of long-term assets (financial assets excluded)	144				0
b) Impairment of short - term assets (financial assets excluded)	145
7. Provisions (147 do 152)	146				0
a) Provisions for pensions, severance pay and similar libabilities	147
b) Provisions for tax liabilities c) Provisions for ongoing legal cases	148 149
d) Provisions for costs of natural resources regeneration	150
e) Provisions for guarantees costs	151
f) Other provisions	152
8. Other operating costs	153	4.490.838	1.280.221	4.060.565	697.616
III. FINANCIAL INCOME (155 do 164)	154	2.000.888	1.028.296	3.138.452	734.935
1. Income from investment in shares in related parties within the Group	155
2. Income from investment in shares of entrepreneurs in whom the entity holds participating	156
3. Income from other long-term financial investment and loans granted to related parties	157	600.107	208.417	692.962	247.302
4. Other income arising from interests with related parties within the Group	158			6.580
5. Foreign exchange gains and similar financial income with related parties within the Group	159
6. Income from other long-term financial investment and loans	160	160.786	66.440	593.736	179.941
7. Other income arising from interests	161	331.596	230.148	130.625	108.228
8. Foreign exchange gains and similar financial income	162	236.818	116.491	575.293	143.927
9. Unrealized gains (income) from financial assets	163
10. Other financial income	164	671.581	406.800	1.139.256	55.537
IV. FINANCIAL EXPENSES (166 do 172)	165	21.197.816	7.439.269	20.942.137	6.559.854
1. Expenses arising from interests and similar expenses with related parties within the Group	166	983	0	893.420	381.288
2. Foreign exchange losses and similar financial expenses with related parties within the	167
3. Expenses arising from interests and similar expenses	168	20.581.063	7.345.005	19.290.786	5.801.853
4. Foreign exchange losses and similar financial expenses	169	519.995	93.127	726.992	376.068
5. Unrealized losses (expenses) on financial assets	170
6. Financial assets impairment (net)	171	60.000	0	0	0
7. Other financial expenses	172	35.775	1.137	30.939	645
V. SHARE IN PARTICIPATING INTERESTS PROFIT	173
VI. SHARE IN JOINT-VENTURE PROFIT	174
VII. SHARE IN PARTICIPATING INTERESTS LOSS	175
VIII. SHARE IN JOINT-VENTURE LOSS	176		174.583.122	271.060.212	81.009.975
IX. TOTAL INCOME (125+164+173 + 174) X. TOTAL EXPENSES (131+165+175 + 176)	177 178	397.256.813 397.984.124	170.384.417	297.471.832	85.095.138
XI. PROFIT OR LOSS BEFORE TAXES (177-178)	179	-727.311	4.198.705	-26.411.620	-4.085.163
1. Profit before taxes (177-178)	180	0	4.198.705	0	0
2. Loss before taxes (178-177)	181	727.311	0	26.411.620	4.085.163
XII. PROFIT TAX	182
XIII. PROFIT OR LOSS FOR THE PERIOD (179-182)	183	-727.311	4.198.705	-26.411.620	-4.085.163
1. Profit for the period (179-182)	184	0	4.198.705	0	0
2. Loss for the period (182-179)	185	727.311	0	26.411.620	4.085.163
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
2. Attributable to minority interest	187
STATEMENT OF OTHER COMPREHENSIVE INCOME (only for IFRS adopters)
I. PROFIT OR LOSS FOR THE PERIOD	188	-727.311	4.198.705	-26.411.620	-4.085.163
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	191
3. Profit or loss arising from re-evaluation of financial assets available for sale	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 of participating interest companies	195
7. Actuarial gains / losses on defined benefit plans	196
8. Other changes in equity non related to the owners III. TAX ON OTHER COMPREHENSIVE INCOME FOR THE PERIOD	197
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	-727.311	4.198.705	-26.411.620	-4.085.163
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
2. Attributed to minority interest	202

Cash flow statement - indirect method period 01.01.2017 to 30.09.2017

Position	AOP	Previous	Current period
1	2	period 3	4
CASH FLOWS FROM OPERATING ACTIVITIES
1. Profit before tax	001	(727.312)	(26.411.620)
2. Adjustments (003 do 010)	002	24.147.337	27.357.124
a.) Depreciation and amortisation	003	7.679.741	8.193.886
b.) Gains and losses from the sale and impairment of long-term tangible and	004	(187.190)	(93.597)
intangible assets
c.) Gains and losses from the sale and unrealised gains and losses and impairment of financial assets	005	(292.623)	(926.192)
d.) Interests and dividends income	006
e.) Interests expense	007	19.489.551	20.184.206
f.) Provisions	008
g .) Foreign exchange differences (unrealised)	009	(20.867)
h.) Other adjustments for non-cash transactions and unrealised gains and	010	(2.542.143)	(1.179)
losses
I. Cash flow increase or decrease before changes in the working capital (001 do 002)	011	23.420.025	945.504
3. Working capital changes ( 013 do 016)	012	(62.852.181)	23.732.676
a.) Increase or decrease in short term liabilities	013	17.488.475	15.260.864
b.) Increase or decrease in short term receivables	014	(59.499.848)	(5.744.740)
c.) Increase or decrease in inventories	015	(20.840.808)	14.216.552
d.) Other increase or decrease in the working capital	016
II. Cash from operations (011+012)	017	(39.432.156)	24.678.180
4. Interests paid	018
5. Income tax paid	019	(4.608.029)	(1.555.336)
A) NET CASH FLOW FROM OPERATING ACTIVITIES (017 do 019)	020	(44.040.185)	23.122.844
CASH FLOW FROM INVESTING ACTIVITIES
1. Cash inflows from sales of long-term tangible and intangible assets	021	187.190	80.917
2. Cash inflow from the sale of financial instruments	022	(73.568)
3. Interests receipts	023	1.478.372	1.081.315
4. Dividends receipts 5. Cash inflow from repayment of given loans and other borrowings	024	19.794	13.003.940
6. Other cash inflows from investing activities	025 026	37.254.126 -	795.584
III. Total cash inflows from investing activities (021 do 026)	027	38.865.914	14.961.756
1. Cash outflow for purchase of long-term tangible and intangible assets	028	(3.135.090)	(1.881.255)
2. Cash outflow for acquisition of financial instruments	029
3. Cash outflow for granting loans and other borrowings in the given period	030	(63.392.056)	(29.829.373)
4. Aquisition of associates decreased by the acquired cash	031
5. Other cash outflow for investing activities	032	162.712	(14.747)
IV. Total cash outflow for investing activities (028 do 032)	033	(66.364.434)	(31.725.375)
B) NET CASH FLOW FROM INVESTING ACTIVITIES (027+033)	034	(27.498.520)	(16.763.619)
CASH FLOW FROM FINANCING ACTIVITIES
1. Cash inflow from increase of the share (subscribed) capital	035
2. Cash inflow from issuing property and debt financial instruments	036
3. Cash proceeds from the credit principals, promissory notes, borrowings and other loans	037	254.653.512	98.403.467
4. Other proceeds from financial activities	038
V. Total cash inflows from financial activities (027 do 029)	039	254.653.512	98.403.467
1. Cash outflow for repayment of credit principals, promissory notes,	040	(205.420.131)	(90.493.518)
borrowings and other loans
2. Cash outflow for dividends paid	041	(950.822)	-
3. Cash outflow for financial lease	042	(488.256)	(729.948)
4. Cash outflow for purchase of treasury shares and decrease of share (subscribed) capital	043
5. Other cash outflow for financial activities	044	8.174.890	(20.910.559)
VI. Total cash outflow for financial activities (031 do 035)	045	(198.684.319)	(112.134.025)
C) NET CASH FLOW FROM FINANCIAL ACTIVITIES	046	55.969.193	(13.730.558)
1. Unrealised foreign exchange differences in cash and cash equivalents	047
D) NET INCREASE OR DECREASE IN CASH FLOW (020+034+046+047)	048	(15.569.512)	(7.371.333)
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	049	16.972.547	9.300.282
F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	050	1.403.035	1.928.949

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

POD-PK

Obrazac

Company: GRANOLIO D.D. ,OIB 59064993527
										Attributable to the equity holders of the parent	Fair value of		Efficient			Total	Minority	Total capital
Position	AOP	Note no.	Share (subscribed) capital	Capital reserves	Legal reserves	Reserves for treasury shares	Treasury shares (deductible)	Statutory reserves	Other reserves	Revaluation reserve	financial assets available for	Efficient part of cash flow hedging	part of hedging of a net	Retained earnings / accumulate d loss	Profit / loss for the current year	attributable to the equity holders of	(non controlling) interest	and reserves
1	2	3	4	5	6	7	8	9	10	11	sale 12	13	investment 14	15	16	the parent 17 (4 do 7 - 8	18	19 (17+18)
Prior period
1. Balance 1 January of the prior period	01		19.016.430	84.186.547	183.484					64.473.012				-7.078.272		9.073.131 169.854.332		169.854.332
2. Changes in accounting policies	02															0		0
3. Correction of errors	03															0		0
4. Balance 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 -7.078.272		9.073.131 169.854.332		0 169.854.332
5. Profit / loss for the period	05														-727.311	-727.311		-727.311
6. Exchange differences on translation of foreign operations	06															0		0
7. Changes in revaluation reserves of long-term tangible and intangible assets	07									-2.183.292				2.183.292		0		0
8. Profit or loss from re-evaluation of financial assets available for sale	08															0		0
9. Gains or losses arising on efficient cash flow hedging	09															0		0
10. Gains or losses arising on efficient hedge of a net investment in foreign countries	10															0		0
11. Share in other comprehensive income / loss of participating interest companies	11															0		0
12. Actuarial gains / losses on defined benefit plans	12															0		0
13. Other changes in equity non related to the owners	13															0		0
14. Taxation recognised directly in equity	14													545.823		545.823		545.823
15. Increase/decrease in share (subscribed) capital (other than from reinvesting profit and other than arising from the 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 settlement procedure	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									8.173.388 -9.073.131	0		0
22. Increase in reserves arising from the pre-bankruptcy settlement procedure	22															0		0
23. Balance 30 September of the prior period (04 do 22)	23		19.016.430	84.186.547	283.227	800.000		0	0	0 62.289.720		0 0		0 2.873.409		-727.311 168.722.022		0 168.722.022
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by entrepreneur that prepares financial statements in accordance to IFRS)
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	99.743	800.000		0	0	0	0	0 0	0		0 0	899.743	0	899.743

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

POD-PK

Obrazac

			Attributable to the equity holders of the parent
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 holders of	Minority (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	the parent 17 (4 do 7 - 8	18	19 (17+18)
Current period
1. Balance 1 January of the current period	27		19.016.430	84.186.547	283.227	800.000				61.561.956				3.783.114		2.506.535 172.137.809		172.137.809
2. Changes in accounting policies	28															0		0
3. Correction of errors	29															0		0
4. Balance 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 3.783.114		2.506.535 172.137.809		0 172.137.809
5. Profit / loss for the period	31															-26.411.620 -26.411.620		-26.411.620
6. Exchange differences on translation of foreign operations	32															0		0
7. Changes in revaluation reserves of long-term tangible and intangible assets	33									-2.237.874				2.237.874		0		0
8. Profit or loss from re-evaluation of financial assets available for sale	34															0		0
9. Gains or losses arising on efficient cash flow hedging	35															0		0
10. Gains or losses arising on efficient hedge of a net investment in foreign countries	36															0		0
11. Share in other comprehensive income / loss of participating interest companies	37															0		0
12. Actuarial gains / losses on defined benefit plans	38															0		0
13. Other changes in equity non related to the owners	39															0		0
14. Taxation recognised directly in equity	40									1.539.049				491.241		2.030.290		2.030.290
15. Increase/decrease in share (subscribed) capital (other than from reinvesting profit and other than arising from the 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 settlement procedure	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										2.381.208 -2.506.535	0		0
22. Increase in reserves arising from the pre-bankruptcy settlement procedure	48															0		0
23. Balance 30 September of the prior period (04 do 22)	49		19.016.430	84.186.547	408.554	800.000	0	0		0 60.863.131	0	0			0 8.893.437 -26.411.620 147.756.479			0 147.756.479
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by entrepreneur that prepares financial statements in accordance to IFRS)
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