AD Plastik d.d.

Annual Report • Feb 23, 2018

2017

ANNUAL REPORT

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

TEMPORARY UNAUDITED FINANCIAL STATEMENTS

Contents

Management Report of AD Plastik Group and the Company AD Plastik d.d. Solin for the period 01.01.2017 - 31.12.2017 A

D	Management's statement of responsibility	29
	Statement of changes in equity	28
	Cash flow (indirect method)	27
	Profit and loss account	25
	Balance sheet	23
C	Financial statement of the company AD Plastik	21
	Statement of changes in equity	20
	Cash flow (indirect method)	19
	Profit and loss account	17
	Balance sheet	15
B	Financial statement of AD Plastik Group	13
	AD Plastik Group with consolidation of the corresponding ownership parts in affiliated companies	12
	Sales revenue per sales markets of AD Plastik Group, without affiliated companies	10
	Financial Position of AD Plastik Group	9
	Key indicators of AD Plastik Group for 2017	9
	Financial results in 2017	7
	Commentary by Marinko Došen, President of the Management Board	6
	Operating revenue, EBITDA and net profit of AD Plastik Group	5

4

A

Management Report

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

Operating revenue, EBITDA and net profit of AD Plastik Group	5
Commentary by Marinko Došen, President of the Management Board	6
Financial results in 2017	7
Key indicators of AD Plastik Group for 2017	9
Financial Position of AD Plastik Group	9
Sales revenue per sales markets of AD Plastik Group, without affiliated companies	10
AD Plastik Group with consolidation of the corresponding ownership parts in affiliated companies	12

Operating revenue, EBITDA and net profit of AD Plastik Group

Operating revenue

million kunas 1,086.89

+16.15%

compared to the previous year

Earnings before interest, taxes and amortization (EBITDA)

157.38

million kunas

compared to the previous year +15.84%

Net profit

million kunas 68.24

compared to the previous year +37.30%

A

MANAGEMENT REPORT AD PLASTIK GROUP

Commentary by Marinko Došen, President of the Management Board

We are pleased to present you unaudited interim results of the AD Plastik Group for the year 2017 in which, i dare to say, we have achieved one of the best results for the last ten years of business. Successful results are reason for satisfaction, but also an incentive for further realization of the planned goals. Our operating revenue in reporting period has increased by 16,15 percent compared to the previous year, namely in amount of HRK 1,086.89 million.

Reached revenue growth indicates that realized investments, programs and technology in previous year were a good strategic choice, which confirms us the validity of the plans we have set. Buyer is always the main figure in planning our further activities, so we have expanded production capacities in Zagreb, while our capacities in Solin have been fully utilized. In addition to exceptionally good financial results,in the past year we received high evaluation of the quality of our production sites, which is precondition of success in the automotive industry supply chain along with accurate and timely delivery.

Increment of production efficiency and cost rationalisation result in EBITDA growth of 15,84 percent compared to the 2016, which amounts to HRK 157,38 million. Reached net profit rose in 2017 by 37,30 percent and amounts to HRK 68,24 million compared to the same period of the previous year.

In the last quarter of previous year record high sale was achieved, which also points to the trend of the year ahead. We commenced a very significant project year and a dynamic period for our Group, but the strong foundations we have set for the future growth and development give us security and optimism.

The overall growth of the AD Plastik Group in the European and Russian automotive market is our priority which we will achieve by planned increase in production and sales on all locations.

Marinko Došen President of the Management Board

Financial results in 2017

In the reporting period AD Plastik Group consists of

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

(hereinafter: AD Plastik Group)

Unaudited interim results of the AD Plastik Group show that the business year 2017 was extremely successful and excellent results were achieved regarding all financial indicators. The vision of the AD Plastik Group as the market leader in development and production of automotive components in Eastern Europe, business expanding into new markets and the mission and core values of the company have been completely fulfilled. Continuous company reorganization, investment in human resources, as well as product and program development have set strong foundations for future growth and development.

Financial results in 2017

By analyzing the year 2017 in accordance with the strategic objectives of the company, AD Plastik Group has achieved excellent results, which reflects in the increase in revenue, operating profit and net profit. Investment in new painting line, numerous new programs and technologies as well as preparations for the acquisition confirm the correctness of the business strategy and encourage further plan realisation. Exceptional financial results and high evaluation of plant quality, as well as accurate and timely deliveries indicate success of company's development strategy and its focus on development and buyer.

Operating revenue of the AD Plastik Group achieved in the year 2017 is higher by 16,15 percent than the operating revenue achieved in 2016 and amounts to HRK 1,086.89 million. Significant growth of vehicle sales in Europe and recovery of Russian market have positively reflected on the growth of the AD Plastik Group's revenue. Nevertheless, continuous strengthening of the kuna against the euro continues to have negative effects on the amount of revenue achieved over the last two years. Effect of the ruble is still two-sided. It has positive effect on operating revenue due to significantly lower value of average ruble compared to the previous year, but also a negative effect in terms of unrealized exchange differences due to ruble weakening in comparison with the end of 2016.

Earnings before interest, taxes and amortization (EBITDA) of the AD Plastik Group in the observed period amount to HRK 157,38 million, representing a growth of 15,84 percent compared to the previous year. EBITDA margin, as announced, remained at the last year's 14,5 percent level, which is still significantly above the industry average.

Thanks to the achieved operating revenue, permanent improvements in business processes and more favorable net financial result, the net profit of the AD Plastik Group for the year 2017 amounts to record HRK 68,24 million and is higher by 37,30 percent compared to the previous year.

1,086.9 mkn

Operating revenue

14.5%

EBITDA margin

68.2 mkn

Net profit

Key indicators of AD Plastik Group for 2017

Indicators - Group	YE16	4Q17	Index
Operating revenue (in thsd, of kuna)	935,750	1,086,893	116.15
Sales revenue (in thsd, of kuna)	913,383	1,069,059	117.04
NFD (in thsd, of kuna)	372,452	321,351	86.28
EBITDA (in thsd, of kuna)	135,855	157,376	115.84
NFD/EBITDA	2.74	2.04
EBITDA margin	14.52%	14.48%
Net profit margin	5.31%	6.28%

Financial Position of AD Plastik Group

The AD Plastik Group's financial position improvement trend continues. Business growth has been achieved along with further reduction in net debt and more favorable average financing cost. Thus, compared to 31st December 2016 credit debt was reduced by HRK 54,11 million, bringing the ratio of NFD/EBITDA to level 2,04. This opens up a possibility of further capital investment and realisation of potential acquisitions.

In addition, planned investment of HRK 34 million in the project "Pilot painting line for Industrial Research, Development and Innovations" was realised in the year 2017, whereby AD Plastik will strenghten the portfolio of painted products.

The record high sales of the last quarter of 2017 resulted in higher receivables from customers by HRK 56,4 million compared to 31st December 2016, while total payables to suppliers in the same period increased by HRK 30,81 million. Despite the payables increment, debt ratio in 2017 additionally decreased and amounts to 0,42 at 31st December 2017.

Return on equity (ROE) in the year 2017 grows over the targeted 10 percent, which is result of significant increase in net profit of the Group. In the 2016 ROE amounted to 7,67 percent.

The price of ADPL-R-A share in 2017 increased by 22,54 percent and at December 31st 2017 it amounted to HRK 169,10, while CROBEX decreased by 7,62 percent in the same period. Market capitalization of the Company at December 31st 2017 amounted to HRK 710,15 million. Dividend paid in 2017 amounted to HRK 8,5 per share.

A

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

A

MANAGEMENT REPORT AD PLASTIK GROUP

EU and Serbian markets

HRK 800.83 million operating revenue was realized in 2017 on the EU and Serbian markets. In the same period, European market recorded sales growth of the new vehicles by 3,4 percent compared to the previous year, while AD Plastik production sites in Croatia and Serbia recorded the growth of 13,96 percent. Operating revenue share from mentioned

markets in the total operating revenue of the AD Plastik Group amounts to 73,68 percent in 2017. In addition to the sales growth on the automotive market, start of mass production according to the multi-year deals has also contributed to the revenue growth. For example, vehicle Renault Clio, serial production of which started in 2017, has recorded sales growth of 6,7 percent. Strong kuna against the euro continues to have negative effect on revenue from this market, so the revenue in parent company is lower by HRK 7,4 million compared to the previous year. During 2017, a significant amount of new deals, serial production of which is planned during 2018 and 2019, has been contracted for this market. This will completely fill the capacity of production sites in Croatia and Serbia, which will require additional investments in capacity increment. The total value of the new deals in 2017 for this market exceeds EUR 134 million.

Russian market (subsidiaries)

After four years of continuous decline in car sale on the Russian market, in 2017 long-awaited sales growth of 11,9 percent was recorded, precisely 1.6 million vehicles were sold. Such market trend encourages and supports sales growth forecasts in this market by an average of 11 percent per year for the next five years.The AD Plastik Group's revenue on the

Russian market has grown by 22,77 percent in the observed period compared to the previous year. This is largely due to the growth in sales of key vehicles for which AD Plastik supplies components, such as the Renault/Nissan/AvtoVAZ Alliance. Consequently, operating revenue share from the Russian market in 2017 records a growth, which compared to the total operating revenue amounts to 26,32 percent.

As noted above, strong ruble compared to the euro when converting to kunas has the positive effect on consolidated Russian market revenue, if compared to the previous year. Effect of ruble weakening in the second half of the year 2017 has been restrained by using the natural hedging, namely by constantly adjusting sales prices with our business partners in Russia.

As the automotive industry in Russia is only starting to recover after a multi-year crisis, it will take some time for it to reach the sales level of 2,8 million vehicles from 2012. The value of the new deals of the AD Plastik Group for Russian market in 2017 amounts to EUR 17 million, while new significant projects on this market are only being expected. Until then market growth will be generated primarily by the growth in sales of existing vehicle models.

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

Euro Auto Plastic Systems s.r.l.

Center for research and development of automotive industry Croatia

In order to present a clearer picture of business, a comparable, shortened, consolidated profit and loss account for the 2016 and 2017 of the AD Plastik Group has been created, with the profit and loss accounts 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% of ownership of AD Plastik d.d.).

Positions	2016 kkn	2017 kkn	Index
OPERATING REVENUE	1.326.137	1.492.615	112.55
OPERATING EXPENSES	1.212.112	1.354.217	111.72
Material costs	740.990	906.776	122.37
Staff costs	215.250	244.091	113.40
Amortization	82.369	88.199	107.08
Other costs	173.503	115.151	66.37
FINANCIAL REVENUE	45.512	26.763	58.80
FINANCIAL EXPENSES	98.666	77.859	78.91
TOTAL REVENUE	1.371.649	1.519.378	110.77
TOTAL EXPENSES	1.310.778	1.432.076	109.25
Profit before tax	60.871	87.302	143.42
Profit tax	11.168	19.058	170.64
PROFIT OF THE PERIOD	49.704	68.244	137.30
EBITDA	196.395	226.597	115.38

Operating revenue of the AD Plastik Group with consolidated corresponding part of ownership in affiliated companies in the reporting period record growth of 12,55 percent. EBI-TDA amounts to HRK 226,60 million and records a growth of 15,38 percent compared to the last year.

Results of the affiliated companies have been included in the result of the AD Plastik Group by equity method. Affiliated companies have no financial liabilities to AD Plastik d.d. or credit obligations to external entities.

The Center for Research and Development of the Automotive Industry Croatia from 26th of September 2017 is in the process of liquidation as the result of not achieving the establishment objective, which regarding its significance has no effect on the business of the AD Plastik Group.

B

MANAGEMENT REPORT AD PLASTIK GROUP

A

CONTENTS

of AD Plastik Group

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

Appendix 1 Quarterly financial statement, AD Plastik Group

Quarterly Financial Report 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):		2,388
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 TOGLIATTI			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)

TEMPORARY UNAUDITED FINANCIAL STATEMENTS

A

Balance sheet as at 31.12.2017., 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	916,767,876
	I. Intangible assets (004 up to 009)	003	128,546,966	113,676,149
	1 Development costs	004	91,485,430	77,690,843
	2 Concessions, patents, licenses, trademarks, softwares and other rights	005	1,443,552	1,739,869
	3 Goodwill	006	9,411,228	8,669,395
	4 Advances for purchase of intangible assets	007	0	0
	5 Intangible assets in preparation	008	24,550,504	23,888,095
	6 Other intangible assets	009	1,656,252	1,687,947
	II. Tangible assets (011 up to 019)	010	708,010,657	703,607,465
	1 Land	011	150,852,333	150,571,022
	2 Buildings	012	270,504,542	231,806,457
	3 Plants and machinery	013	251,347,981	225,728,660
	4 Tools, plant & office inventory, furniture & transport means	014	19,570,393	17,192,929
	5 Biological assets	015	0	0
	6 Payments on account for tangible assets	016	719,057	2,605,380
	7 Tangible assets in preparation	017	6,439,677	35,551,636
	8 Other tangible assets	018	512,536	1,290,566
	9 Investment in real estate	019	8,064,138	38,860,816
	III. Fixed financial assets (021 up to 028)	020	87,924,858	97,411,256
	1 Shares in affiliated undertakings	021	0	0
	2 Loans to affiliated undertakings	022	0	0
	3 Participating interests (shares)	023	82,963,564	94,323,012
	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	3,026,544
	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	63,200
	1 Receivables from associated undertakings	030	0	0
	2 Receivables from sales on credit	031	0	0
	3 Other receivables	032	94,700	63,200
	V. Deffered tax assets	033	5,764,080	2,009,806
C	CURRENT ASSETS (035+043+050+058)	034	351,937,116	405,973,203
	I. Inventory (036 up to 042)	035	107,565,153	158,237,706
	1 Materials and supplies	036	68,929,171	94,715,494
	2 Work in progress	037	5,442,340	6,427,819
	3 Finished goods	038	19,116,526	24,071,532
	4 Commercial goods	039	13,939,849	22,165,818
	5 Advances for inventories	040	137,267	10,857,043
	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	236,515,790
	1 Receivables from associated undertakings	044	0	0
	2 Trade receivables	045	137,081,913	193,508,280
	3 Receivables from participating companies	046	5,452,738	5,368,624
	4 Receivables from employees and members of the business	047	287,808	104,546
	5 Receivables from government and other institutions	048	11,423,894	17,943,276
	6 Other receivables	049	28,750,422	19,591,063
	III. Current financial assets (051 up to 057)	050	50,952,776	1,001,444
	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	1,001,444
	7 Other financial assets	057	0	0
	IV. Cash at bank and in hand	058	10,422,413	10,218,262
D	PREPAYMENT AND ACCRUED INCOME	059	58,478,458	27,958,357
E	TOTAL ASSETS (001+002+034+059)	060	1,340,756,834	1,350,699,435

F OUT-OF-BALANCE ITEMS 061 33,972,091 34,496,140

A

Balance sheet as at 31.12.2017., Taxpayer: AD Plastik Group

Item AOP ind. Preceding year Current year

	1	2	3	4
LIABILITIES
A	CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	697,385,487	747,453,722
	I. SUBSCRIBED SHARE CAPITAL	063	419,958,400	419,958,400
	II. CAPITAL RESERVES	064	191,971,409	191,935,548
	III. RESERVES FROM GAIN (066+067-068+069+070)	065	-11,176,526	-10,583,484
	1 Legal reserves	066	6,135,540	6,139,440
	2 Reserves for own shares	067	3,875,120	4,024,749
	3 Own stocks and shares (deductible item)	068	3,875,120	4,024,749
	4 Statutory reserves	069	3,900	35,861
	5 Other reserves	070	-17,315,967	-16,758,785
	IV. REVALUATION RESERVES	071	-14,331,980	-2,135,856
	V. RETAINED EARNINGS OR LOSS BROUGHT FORWARD (073-074)	072	61,260,357	80,035,110
	1 Retained earnings	073	61,260,357	80,035,110
	2 Loss brought forward	074	0	0
	VI. CURRENT YEAR PROFIT OR LOSS (076-077)	075	49,703,797	68,243,974
	1 Current year profit	076	49,703,797	68,243,974
	2 Current year loss	077	0	0
	VII. MINOR INTEREST	078	30	30
B	PROVISIONS (080 up to 082)	079	13,094,683	14,744,484
	1 Provisions for pensions, severance pay and similar obligations	080	2,269,354	2,139,040
	2 Provisions for tax liabilities	081	0	0
	3 Other provisions	082	10,825,328	12,605,444
C	LONG TERM LIABILITIES (084 up to 092)	083	185,758,712	205,709,461
	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	196,700,765
	4 Liabilities for advances	087	0	0
	5 Trade payables	088	16,519,633	9,008,696
	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	367,956,648
	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	134,868,223
	4 Liabilities for advances	097	34,441,882	30,138,415
	5 Trade payables	098	150,109,610	180,919,043
	6 Commitments on securities	099	0	0
	7 Liabilities to companies in which are participating interests	100	192,011	5,020
	8 Liabilities towards employees	101	9,074,600	10,146,293
	9 Liabilities for taxes, contributions and other benefits	102	8,646,506	11,816,559
	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	35,240
E	DEFERRED PAYMENT OF COSTS AND FUTURE INCOME	106	25,483,146	14,835,120
F	TOTAL LIABILITIES (062+079+083+093+106)	107	1,340,756,834	1,350,699,435
G	OUT-OF BALANCE ITEMS	108	33,972,091	34,496,140

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	747,453,692
	2 Ascribed to minority interest	110	30	30

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

A

B

Profit and loss account Reporting period: 01.01.2017. to 31.12.2017.

Taxpayer: AD Plastik Group

Item		AOP	Preceding period		Current period
		1	ind. 2	Cumulative 3	Quarter 4	Cumulative 5	Quarter 6
I.		OPERATING TURNOVER (112+113)	111	935,749,751	199,696,795	1,086,893,293	307,357,372
		1 Income from sales	112	913,382,705	197,533,871	1,069,059,222	302,207,202
		2 Other operating income	113	22,367,046	2,162,925	17,834,071	5,150,170
II.		OPERATING CHARGES (115+116+120+124+125+126+129+130)	114	877,010,322	183,103,783	1,012,665,166	288,195,391
		1 Changes in the value of inventories of work in progress and finished goods	115	-540,962	-2,379,305	-6,275,486	-7,715,111
		2 Material charges (117 up to 119)	116	548,664,521	128,111,623	679,138,237	203,537,127
		a Costs of raw materials and consumables	117	461,911,624	100,369,166	555,860,134	159,275,143
		b Costs of sales	118	26,377,269	10,057,422	56,194,731	28,790,591
		c Other external charges	119	60,375,627	17,685,035	67,083,372	15,471,393
		3 Staff costs (121 up to 123)	120	162,610,090	33,968,829	188,968,298	51,663,612
		a Salaries and wages	121	102,658,484	23,530,345	119,655,178	32,847,287
		b Costs of taxes and social security	122	34,295,688	5,544,526	39,362,401	10,710,704
		c Duties on wages	123	25,655,919	4,893,958	29,950,719	8,105,621
		4 Depreciation	124	77,115,461	19,888,305	83,148,058	20,723,141
		5 Other costs	125	68,706,918	-5,771,817	54,529,191	15,168,845
		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	6,040,095	6,040,095	5,515,164	2,622,135
		8 Other operating expenses	130	14,414,200	3,246,053	7,641,704	2,195,642
III.		FINANCIAL INCOME (132 up to 136)	131	45,511,957	21,237,736	26,763,064	7,050,420
		1 Interests, exchange rate difference, dividends with affiliates	132	16,482,885	9,941,518	11,878,937	2,765,311
		2 Interests, exchange rate difference, dividends with non-affiliates	133	17,262,016	3,130,106	14,884,127	4,301,597
		3 Part of income from affiliates and participated interests	134	11,767,048	8,166,105	0	-16,488
		4 Non-realized financial income	135	0	0	0	0
		5 Other financial income	136	8	8	0	0
IV.		FINANCIAL CHARGES (138 up to 141)	137	98,308,354	35,548,598	77,583,576	16,684,761
		1 Interests, exchange rate difference, dividends with affiliates	138	25,228,595	7,657,268	42,553,307	8,622,762
		2 Interests, exch. rate difference, dividends with non-affiliates	139	73,079,759	27,891,330	35,030,270	8,061,999
		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	43,171,681	15,614,074	53,333,580	24,449,002
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	1,024,433,389	236,548,605	1,166,989,937	338,856,795
X.		TOTAL CHARGES (114+137+143 + 145)	147	975,318,676	218,652,381	1,090,248,742	304,880,152
XI.		PROFIT OR LOSS BEFORE TAXATION (146-147)	148	49,114,713	17,896,224	76,741,195	33,976,643
		1 Profit before taxation (146-147)	149	49,114,713	17,896,224	76,741,195	33,976,643
		2 Loss before taxation (147-146)	150	0	0	0	0
XII.		PROFIT TAX	151	-589,148	-652,666	8,497,221	7,393,329
XIII		PROFIT OR LOSS FOR THE PERIOD (148-151)	152	49,703,860	18,548,890	68,243,974	26,583,314
		1 PROFIT FOR THE PERIOD (149-151)	153	49,703,860	18,548,890	68,243,974	26,583,314
		2 LOSS FOR THE PERIOD (151-148)	154	0	0	0	0

A

Profit and loss account Reporting period: 01.01.2017. to 31.12.2017.

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	49,703,797	18,550,254	68,243,940	26,583,314
	2 Attributable to minority interests	156	63	-1,364	34	-1

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

I.	PROFIT OR LOSS FOR THE CURRENT PERIOD (= 152)	157	49,703,860	18,548,890	68,243,974	26,583,314
II.	OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAXATION (159 up to 165)	158	27,969,098	4,536,584	-17,237,213	845,562
	1 Exchange differences on translation of foreign operations	159	31,780,206	8,485,087	-12,677,042	973,934
	2 Movements in revaluation reserves of fixed and intangible assets	160	-3,811,108	-3,947,312	-4,560,171	-152,448
	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	7,234,174	2,626,719	-2,508,366	194,021
IV.	OTHER COMPREHENSIVE NET PROFIT OR LOSS (158-166)	167	20,734,923	1,909,865	-14,728,846	651,540
V.	OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD (157+167)	168	70,438,784	20,458,755	53,515,128	27,234,854

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	70,438,613	20,463,707	53,515,164	27,234,852
	2 Attributable to minority interests	170	171	-4,952	-36	2

CONTENTS

A

Taxpayer: AD Plastik Group

Cash flow statement indirect method Reporting period: 01.01.2017. to 31.12.2017.

Item 1	AOP ind. 2	Preceding period 3	Current period 4
CASH FLOW FROM OPERATING ACTIVITIES
1 Profit before taxation	001	49,114,713	76,741,195
2 Depreciation	002	77,115,461	83,148,058
3 Increase of current liabilities	003	0	32,576,415
4 Decrease of current receivables	004	8,909,114	0
5 Decrease in stocks	005	0	0
6 Other increase of cash flow	006	14,745,148	59,336,677
I. Total increase of cash flow from operating activities (001 - 006)	007	149,884,436	251,802,344
1 Decrease of current liabilities	008	25,786,382	0
2 Increase of current receivables	009	0	59,544,007
3 Increase in stocks	010	9,778,928	50,672,553
4 Other decrease of cash flow	011	15,357,819	63,927,269
II. Total decrease of cash flow from operating activities (008 – 011)	012	50,923,129	174,143,830
A1 NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	013	98,961,307	77,658,515
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	6,708,317	1,320,233
2 Cash inflows from sale of ownership and debt instruments	016	128,508	0
3 Cash inflows from interest	017	0	10,073,559
4 Cash inflows from dividends	018	46,079,566	41,829,156
5 Other cash inflows from investment activities	019	3,581,230	55,878,285
III. Total cash inflows from investment activities (015-019)	020	56,497,621	109,101,233
1 Cash expenditures for purchase of fixed tangible and intangible assets	021	54,287,214	87,540,706
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	54,287,214	87,540,706
B1 NET INCREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (020-024)	025	2,210,408	21,560,527
B2 NET DECREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (024-020)	026	0	0
CASH FLOW FROM FINANCIAL ACTIVITIES
1 Cash inflows from issuing ownership and debt financial instruments	027	0	0
2 Cash inflows from credit principal, debentures, loans and other borrowings	028	100,064,791	239,013,403
3 Other inflows from financial activities	029	0	0
V. Total cash inflows from financial activities (027-029)	030	100,064,791	239,013,403
1 Cash expenditures for the payment of credit principal and debentures	031	149,625,188	300,181,320
2 Cash expenditures for the payment of dividends	032	50,044,304	35,489,215
3 Cash expenditures for financial lease	033	3,528,375	2,646,974
4 Cash expenditures for repurchase of own shares	034	0	119,086
5 Other cash expenditures from financial activities	035	0	0
VI. Total cash expenditures from financial activities (031-035)	036	203,197,867	338,436,595
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	103,133,076	99,423,192
Total cash flow increase (013-014+025-026+037-038)	039	0	0
Total cash flow decrease (014-013+026-025+038-037)	040	1,961,362	204,150
Cash and cash equivalents at the beginning of the period	041	12,383,774	10,422,413
Cash and cash equivalents increase	042	0	0
Cash and cash equivalents decrease	043	1,961,362	204,150
Cash and cash equivalents at the end of the period	044	10,422,412	10,218,262

Statement of changes in equity Reporting period: 01.01.2017. to 31.12.2017.

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	191,971,409	191,935,548
3 Reserves from profit	003	-11,176,526	-10,583,484
4 Retained profit or loss carried over	004	61,260,357	80,035,110
5 Current year profit or loss	005	49,703,797	68,243,974
6 Revalorisation of fixed material assets	006	21,565,579	17,280,284
7 Revalorisation of intangible assets	007	0	0
8 Revalorisation of financial assets available for sale	008	0	0
9 Other revalorisation	009	-35,897,559	-19,416,110
10 Total equity and reserves (AOP 001-009)	010	697,385,457	747,453,722
11 Exchange rate variations from net investments into foreign business operations	011	31,780,206	-12,677,042
12 Current and deferred taxes (part)	012	-6,645,027	-5,988,854
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	49,294,792	68,734,131
17 Total equity increase or decrease (AOP 011 - 016)	017	74,429,971	50,068,235
17 a Ascribed to holders of the holders company capital	018	74,425,220	50,068,201
17 b Ascribed to minority interest	019	4,751	34

Items reducing Capital are entered with negative sign.

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

A

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

C

AD PLASTIK D.D.

MANAGEMENT REPORT AD PLASTIK GROUP

A

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

Reporting period: 01.01.2017. to 31.12.2017.

Quarterly Financial Report 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):		1,321
Consolidated report:	NO	Šifra NKD-a:	2932
Names of consolidation subjects (according to IMSF):	Seat:		REG. NO.:
Bookkeeping service:
Contact person:	Sandra Capan
(only the name and surname of the contact person to be entered)
Telephone:	021/206-651
Fax:	021/275-651
E-mail address:		sandra.capan@adplastik.hr
Name and surname:	Sanja Biočić
(person authorised for representation)
Documentation for publishing:
Financial statements (balance sheet, profit and loss statement, cash flow statement, 1. changes in equity and notes to financial statements)

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

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

as at 31.12.2017. 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	850,190,714
	I. Intangible assets (004 up to 009)	003	93,748,704	86,476,684
	1 Development costs	004	72,457,118	66,779,111
	2 Concessions, patents, licenses, trademarks, softwares and other rights	005	1,238,643	1,686,637
	3 Goodwill	006	0	0
	4 Advances for purchase of intangible assets	007	0	0
	5 Intangible assets in preparation	008	20,052,942	18,010,937
	6 Other intangible assets	009	0	0
	II. Tangible assets (011 up to 019)	010	498,951,007	518,393,613
	1 Land	011	147,283,499	147,283,499
	2 Buildings	012	183,487,665	153,392,574
	3 Plants and machinery	013	143,036,378	134,149,929
	4 Tools, plant & office inventory, furniture & transport means	014	11,755,768	12,517,527
	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	35,397,740
	8 Other tangible assets	018	0	0
	9 Investment in real estate	019	8,064,138	35,652,343
	III. Fixed financial assets (021 up to 028)	020	153,112,668	167,776,588
	1 Shares in affiliated undertakings	021	44,383,495	44,383,495
	2 Loans to affiliated undertakings	022	81,988,724	98,525,695
	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	3,026,544
	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	76,924,690
	1 Receivables from associated undertakings	030	135,936,843	76,924,690
	2 Receivables from sales on credit	031	0	0
	3 Other receivables	032	0	0
	V. Deffered tax assets	033	3,160,529	619,139
C	CURRENT ASSETS (035+043+050+058)	034	290,891,627	346,943,571
	I. Inventory (036 up to 042)	035	54,643,708	75,900,474
	1 Materials and supplies	036	36,552,513	54,695,945
	2 Work in progress	037	4,063,333	4,507,127
	3 Finished goods	038	10,693,346	13,885,877
	4 Commercial goods	039	3,334,516	2,811,526
	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	266,897,995
	1 Receivables from associated undertakings	044	56,766,845	88,126,966
	2 Trade receivables	045	95,705,485	145,699,536
	3 Receivables from participating companies	046	4,150,673	3,872,094
	4 Receivables from employees and members of the business	047	132,133	2,477
	5 Receivables from government and other institutions	048	5,314,813	11,879,201
	6 Other receivables	049	21,983,920	17,317,721
	III. Current financial assets (051 up to 057)	050	48,160,740	1,001,444
	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	48,160,740	1,001,444
	7 Other financial assets	057	0	0
	IV. Cash at bank and in hand	058	4,033,311	3,143,658
D E	PREPAYMENT AND ACCRUED INCOME TOTAL ASSETS (001+002+034+059)	059 060	48,634,327 1,224,435,704	27,126,758 1,224,261,044
F	OUT-OF-BALANCE ITEMS	061	4,738,178	5,829,941

A

as at 31.12.2017. Balance sheet Taxpayer: AD Plastik d.d.

	Item	AOP ind.	Preceding year	Current year
	1	2	3	4
PASIVA
A	CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	665,718,184	694,884,445
	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	27,876,794
	1 Legal reserves	066	6,128,852	6,128,852
	2 Reserves for own shares	067	3,875,120	4,024,749
	3 Own stocks and shares (deductible item)	068	3,875,120	4,024,749
	4 Statutory reserves	069	0	0
	5 Other reserves	070	21,055,550	21,747,942
	IV. REVALUATION RESERVES	071	-11,336,615	0
	V. RETAINED EARNINGS OR LOSS BROUGHT FORWARD (073-074)	072	0	2,861,551
	1 Retained earnings	073	0	2,861,551
	2 Loss brought forward	074	0	0
	VI. CURRENT YEAR PROFIT OR LOSS (076-077)	075	38,346,696	52,622,399
	1 Current year profit	076	38,346,696	52,622,399
	2 Current year loss	077	0	0
	VII. MINOR INTEREST	078	0	0
B	PROVISIONS (080 up to 082)	079	10,555,972	12,034,799
	1 Provisions for pensions, severance pay and similar obligations	080	2,102,178	1,934,116
	2 Provisions for tax liabilities	081	0	0
	3 Other provisions	082	8,453,794	10,100,683
C	LONG TERM LIABILITIES (084 up to 092)	083	174,412,368	202,445,340
	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	196,700,765
	4 Liabilities for advances	087	0	0
	5 Trade payables	088	12,059,273	5,744,576
	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	304,627,883
	1 Liabilities to related parties	094	5,453,585	13,331,971
	2 Commitments for loans, deposits, etc	095	0	0
	3 Liabilities to banks and other financial institutions	096	206,333,849	128,022,455
	4 Liabilities for advances	097	12,249,328	5,746,769
	5 Trade payables	098	124,374,987	145,321,662
	6 Commitments on securities	099	0	0
	7 Liabilities to companies in which are participating interests	100	82,009	5,020
	8 Liabilities towards employees	101	7,074,711	7,696,398
	9 Liabilities for taxes, contributions and other benefits	102	4,015,713	4,458,062
	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	10,268,577
F	TOTAL LIABILITIES (062+079+083+093+106)	107	1,224,435,704	1,224,261,044
G	OUT-OF BALANCE ITEMS	108	4,738,178	5,829,941

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 31.12.2017.

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	717,876,242	147,635,763	831,797,392	243,325,121
		1 Income from sales	112	701,423,159	145,172,875	815,887,282	236,878,374
		2 Other operating income	113	16,453,084	2,462,888	15,910,110	6,446,747
II.		OPERATING CHARGES (115+116+120+124+125+126+129+130)	114	683,366,811	135,293,873	793,170,219	232,480,783
		1 Changes in the value of inventories of work in progress and finished goods	115	-1,527,962	-1,297,545	-3,636,665	-3,550,013
		2 Material charges (117 up to 119)	116	449,363,320	104,200,897	561,420,844	170,615,126
		a Costs of raw materials and consumables	117	340,681,006	75,098,103	378,833,336	107,304,246
		b Costs of sales	118	62,704,154	16,497,091	128,718,532	46,988,609
		c Other external charges	119	45,978,160	12,605,703	53,868,976	16,322,271
		3 Staff costs (121 up to 123)	120	117,972,725	22,833,629	132,791,642	36,484,839
		a Salaries and wages	121	72,709,245	16,141,338	82,290,919	22,767,531
		b Costs of taxes and social security	122	28,506,784	4,030,100	32,012,148	8,772,737
		c Duties on wages	123	16,756,696	2,662,191	18,488,575	4,944,571
		4 Depreciation	124	48,917,964	12,377,359	51,748,095	13,095,768
		5 Other costs	125	55,670,650	-7,240,814	41,116,069	12,076,059
		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	3,841,949	3,841,949	5,353,806	2,847,886
		8 Other operating expenses	130	9,128,165	578,399	4,376,428	911,121
III.		FINANCIAL INCOME (132 up to 136)	131	72,696,485	18,181,320	59,621,773	13,702,349
		1 Interests, exchange rate difference, dividends with affiliates	132	4,993,869	1,529,360	8,694,582	1,619,107
		2 Interests, exchange rate difference, dividends with non-affiliates	133	9,251,027	989,317	8,953,059	1,601,906
		3 Part of income from affiliates and participated interests	134	58,451,581	15,662,636	41,974,133	10,481,336
		4 Non-realized financial income	135	0	0	0	0
		5 Other financial income	136	8	8	0	0
IV.		FINANCIAL CHARGES (138 up to 141)	137	68,312,008	26,900,427	43,547,702	5,895,669
		1 Interests, exchange rate difference, dividends with affiliates	138	2,265,559	621,090	15,862,160	885,165
		2 Interests, exchange rate difference, dividends with non-affiliates	139	66,046,449	26,279,337	27,685,542	5,010,504
		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	790,572,727	165,817,083	891,419,166	257,027,470
X.		TOTAL CHARGES (114+137+143 + 145)	147	751,678,818	162,194,300	836,717,922	238,376,453
XI.		PROFIT OR LOSS BEFORE TAXATION (146-147)	148	38,893,909	3,622,783	54,701,244	18,651,018
		1 Profit before taxation (146-147)	149	38,893,909	3,622,783	54,701,244	18,651,018
		2 Loss before taxation (147-146)	150	0	0	0	0
XII.		PROFIT TAX	151	547,212	547,212	2,078,845	2,148,505
XIII		PROFIT OR LOSS FOR THE PERIOD (148-151)	152	38,346,696	3,075,571	52,622,399	16,502,513
		1 PROFIT FOR THE PERIOD (149-151)	153	38,346,696	3,075,571	52,622,399	16,502,513
		2 LOSS FOR THE PERIOD (151-148)	154	0	0	0	0

Profit and loss account Reporting period: 01.01.2017. to 31.12.2017.

Taxpayer: AD Plastik d.d.

	AOP	Preceding period		Current period
Item	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	38,346,696	3,075,571	52,622,399	16,502,513
OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAXATION (159 II. up to 165)	158	4,933,442	2,201,841	0	0
1 Exchange differences on translation of foreign operations	159	6,629,291	3,897,691	0	0
2 Movements in revaluation reserves of fixed and intangible assets	160	-1,695,850	-1,695,850	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
TAX ON OTHER COMPREHENSIVE INCOME FOR THE CURRENT III. PERIOD	166	1,193,272	646,952	0	0
IV. OTHER COMPREHENSIVE NET PROFIT OR LOSS (158-166)	167	3,740,169	1,554,889	0	0
OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD V.

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 42,086,865 4,630,460 52,622,399 16,502,513

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CONTENTS

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Taxpayer: AD Plastik d.d.

C

Cash flow statement indirect method Reporting period: 01.01.2017. to 31.12.2017.

Item 1	AOP ind. 2	Preceding period 3	Current period 4
CASH FLOW FROM OPERATING ACTIVITIES
1 Profit before taxation	001	38,893,909	54,701,244
2 Depreciation	002	48,917,964	51,748,095
3 Increase of current liabilities	003	0	23,395,068
4 Decrease of current receivables	004	0	0
5 Decrease in stocks	005	0	0
6 Other increase of cash flow	006	30,370,377	37,237,446
I. Total increase of cash flow from operating activities (001 - 006)	007	118,182,250	167,081,853
1 Decrease of current liabilities	008	40,404,925	0
2 Increase of current receivables	009	19,943,605	44,161,023
3 Increase in stocks	010	4,104,365	21,256,766
4 Other decrease of cash flow	011	12,879,808	50,545,987
II. Total decrease of cash flow from operating activities (008 – 011)	012	77,332,703	115,963,776
A1 NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	013	40,849,548	51,118,077
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	3,623,951	2,376,047
2 Cash inflows from sale of ownership and debt instruments	016	128,508	0
3 Cash inflows from interest	017	9,875,365	13,820,652
4 Cash inflows from dividends	018	46,079,566	41,829,156
5 Other cash inflows from investment activities	019	16,767,819	53,086,248
III. Total cash inflows from investment activities (015-019)	020	76,475,209	111,112,103
1 Cash expenditures for purchase of fixed tangible and intangible assets	021	37,012,477	76,730,370
2 Cash expenditures for acquisition of ownership and debt instruments	022	7,201	0
3 Other cash expenditures from investment activities	023	1,769,628	0
IV. Total cash expenditures from investment activities (021-023)	024	38,789,306	76,730,370
B1 NET INCREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (020-024)	025	37,685,903	34,381,733
B2 NET DECREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (024-020)	026	0	0
CASH FLOW FROM FINANCIAL ACTIVITIES
1 Cash inflows from issuing ownership and debt financial instruments	027	0	0
2 Cash inflows from credit principal, debentures, loans and other borrowings	028	95,926,964	239,013,403
3 Other inflows from financial activities	029	0	0
V. Total cash inflows from financial activities (027-029)	030	95,926,964	239,013,403
1 Cash expenditures for the payment of credit principal and debentures	031	120,459,051	287,151,660
2 Cash expenditures for the payment of dividends	032	50,044,304	35,485,145
3 Cash expenditures for financial lease	033	3,339,435	2,646,974
4 Cash expenditures for repurchase of own shares	034	0	119,086
5 Other cash expenditures from financial activities	035	0	0
VI. Total cash expenditures from financial activities (031-035)	036	173,842,791	325,402,866
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	77,915,826	86,389,463
Total cash flow increase (013-014+025-026+037-038)	039	619,624	0
Total cash flow decrease (014-013+026-025+038-037)	040	0	889,653
Cash and cash equivalents at the beginning of the period	041	3,413,687	4,033,311
Cash and cash equivalents increase	042	619,624	0
Cash and cash equivalents decrease	043	0	889,653
Cash and cash equivalents at the end of the period	044	4,033,310	3,143,658

Statement of changes in equity

Reporting period: 01.01.2017. to 31.12.2017. Taxpayer: AD Plastik d.d.

Item 1	AOP ind. 2	Preceding year 3	Current period 4
1 Subscribed capital	001	419,958,400	419,958,400
2 Capital reserves	002	191,565,301	191,565,301
3 Reserves from profit	003	27,184,402	27,876,794
4 Retained profit or loss carried over	004	0	2,861,551
5 Current year profit or loss	005	38,346,696	52,622,399
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	-11,336,615	0
10 Total equity and reserves (AOP 001-009)	010	665,718,184	694,884,445
11 Exchange rate variations from net investments into foreign business operations	011	6,629,291	0
12 Current and deferred taxes (part)	012	-1,740,485	-2,078,845
13 Cash flow protection	013	0	0
14 Changes in bookkeeping policies	014	0	0

Cash flow protection 013 0 0 Changes in bookkeeping policies 014 0 0 Correction of significant mistakes from the previous period 015 0 0 Other changes to capital 016 15,857,736 31,245,106 Total equity increase or decrease (AOP 011 - 016) 017 20,746,542 29,166,261

Items reducing Capital are entered with negative sign.

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

17 a Ascribed to holders of the holders company capital 018 17 b Ascribed to minority interest 019

Management's

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MANAGEMENT REPORT AD PLASTIK GROUP

D

Solin, February 2018

Management's statement of responsibility

The financial statements of AD Plastik Group and the Company AD Plastik d.d. Solin are prepared in accordance with the International Financial Reporting Standards (IFRS) and the Croatian Law on Accounting.

The consolidated financial statements of AD Plastik Group and the financial statements of the Company AD Plastik d.d. for the period from January 1 to December 31 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 December 31 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, FEBRUARY 2018 WWW.ADPLASTIK.HR