AD Plastik d.d.

Quarterly Report • Oct 31, 2018

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

FOR THE FIRST NINE MONTHS OF 2018

Table of contents

Management Report of AD Plastik Group and the Company AD Plastik d.d. Solin for the period 1. 1. 2018 - 30. 9. 2018 A

D	Management's statement of responsibility	35
	Report on changes in equity	34
	Cash flow (indirect method)	33
	Profit and loss account	31
	Balance sheet	29
C	Financial report of the company AD Plastik	27
	Report on changes in equity	26
	Cash flow (indirect method)	25
	Profit and loss account	23
	Balance sheet	21
B	Financial report of AD Plastik Group	19
	Share	17
	AD Plastik Group with consolidation of the corresponding ownership part in affiliated companies	15
	Operating revenue per sales markets of AD Plastik Group, without affiliated companies	13
	Financial results for the first nine months	8
	Comment by Marinko Došen, President of the Management Board	7
	Operating revenue, EBITDA and Net profit	5

A

MANAGEMENT REPORT AD PLASTIK GROUP

4

A

for the period A 1. 1. 2018 - 30. 9. 2018

Management Report

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

Operating revenue, EBITDA and Net profit	5
AD Plastik Group	5
AD Plastik d.d.	6
Comment by Marinko Došen, President of the Management Board	7
Financial results for the first nine months of 2018	8
Acquisition of Tisza Automotive d.o.o.	9
Key performance indicators	10
Operating expenses	10
Net financial result	11
Financial position	12
Operating revenue per sales markets of AD Plastik Group, without affiliated companies	13
EU and Serbian markets	14
Russian market	14
AD Plastik Group with consolidation of the corresponding ownership part in affiliated companies	15
Share	17
Ownership structure on September 30th 2018	17
ADPL share price and index CROBEX behavior	18

Operating revenue, EBITDA and Net profit

of AD Plastik Group

A

MANAGEMENT REPORT AD PLASTIK GROUP

CONTENTS

Operating revenue, EBITDA and Net profit of the company AD Plastik d.d.

Operating revenue EBITDA Net profit 692.53 HRK million 67.60 HRK million 63.18 HRK million compared to the first nine months of 2017 compared to the first nine months of 2017 compared to the first nine months of 2017 +17.68% +1.75% +74.93%

A

Comment by Marinko Došen, President of the Management Board

We present you the business results of AD Plastik Group for the first nine months of 2018 which clearly show continuation of the positive trends of our business. We have achieved operating revenue growth of 20.51 percent compared to the same period last year, thus achieved operating revenue at the Group level amounts to HRK 939.39 million. Due to realization of new projects and sealed deals revenue growth will be continued in the medium term and provide us with good results.

Net profit for the first nine months amounts to HRK 60.09 million at the Group level and compared to the observed period of the last year it has siginificantly increased, namely by 44.24 percent. This is above all due to revenue growth, operational efficiency of our production sites and lower financing costs. EBITDA has also increased by 9.75 percent and amounts to HRK 128.94 million.

During the reporting period we also became 100% owner of one of the leading Hungarian companies for the production of plastic components Tisza Automotive. With this acquisition we have achieved the key goals of our growth strategy and medium-term development plan. Some of the most important reasons for choosing this company were its very good geographical location in respect of car manufacturers in that part of Europe, experience in the automotive industry, good customers portfolio and compatibility of technologies the company uses and develops.

The increase in indebtedness and net financial debt is a result of aforementioned acquisition that we financed by means of bank loan. In the medium term we expect a 10 percent revenue growth at the Group level as the result of Tisza Automotive acquisiton impact.

The EBITDA margin of AD Plastik Group is still at high levels, although the margins are somewhat lower compared to the same period last year. This is the result of longer regular shutdowns of our customers' factories during the third quarter.

The high level of capacity utilization of our factories provide us with uninterrupted further development and growth of the Group. Increment of our customers' orders and new deals sealed are further motive for progress. We are a part of industry that constantly demands additional investments and development of technologies, processes and materials as well as improving the quality of the final product in order to maintain competitiveness. We meet all market and customers requirements and that is the foundation of further business progress. Prerequisites for future growth and development have been successfully set and it is up to us to accept new challenges and continue in the direction we have determined.

Marinko Došen President of the Management Board

CONTENTS

A

Financial results for the first nine months of 2018

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

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

(hereinafter: AD Plastik Group)

From July 26th, 2018 AD Plastik Group grew by means of acquisition Hungarian company Tisza Automotive d.o.o. when AD Plastik d.d. became the owner of one hundred percent of that company's shares. The results of Tisza Automotive have been consolidated from the date of acquisition.

During the reporting period the trend of growth of revenue, EBITDA and net profit has continued, thus AD Plastik Group has achieved operating revenue in the amount of HRK 939.39 million, representing a growth of 20.51 percent compared to the same period last year. Operating revenue of the parent company AD Plastik d.d. is higher by 17.68 percent and amounts to HRK 692.53 million.

Compared to the same period last year, revenue growth of the parent company in the reporting period to a greater extent results from realization of new Renault, Fiat, Volkswagen and Ford projects. An additional AD Plastik's growth generator is the recovery of the Russian market despite the weakening of the Russian ruble. During the past months of 2018 the euro exchange rates in relation to the kuna and the euro in relation to the ruble have had negative effect on the revenue level that, despite such trends, has been growing. Strong kuna compared to the euro has negative effect on the revenue level achieved in the parent company, while weak ruble when converting to kuna has negative effect on the revenue level achieved in Russian companies.

Net profit of AD Plastik Group in the first nine months amounts to HRK 60.09 million, which is by 44.24 percent higher than achieved net profit in the same period last year. Parent company has achieved net profit in the amount of HRK 63.18 million, that is by 74.93 percent higher compared to the same period last year. Since the beginning of the year, over EUR 135 million has been agreed on new deals for known customers.

Acquisition of Tisza Automotive d.o.o.

At the end of July AD Plastik d.d. has become one hundred percent owner of company Tisza Automotive d.o.o., a Hungarian limited liability company headquartered in Tiszaújváros. The acquisiton was financed by means of bank loan.

EBITDA margin level, which is slightly lower in the third

quarter than the rest of the year.

With the acquisition of Tisza Automotive, AD Plastik Group has entered a new, fast-growing automotive market, has expanded its customers portfolio and ensured its further growth. In such a manner it accomplishes key goals of business strategy and medium term development plan.

Tisza Automotive is a plastic components manufacturer with more than 15 years of experience in the automotive industry. It is a leading supplier for Suzuki factory in Hungary and, apart from Suzuki, their most important customers are Bentley and Volkswagen, for which the company is Tier 1 supplier. Injection moulding and blow moulding are key technologies of Hungarian factory, and they are compatible with the existing technologies of AD Plastik Group. Company has more than 300 employees and the land of production halls, warehouses and offices amounts to 22.400 square meters. As a Tier II supplier, Tisza Automotive produces for other car manufacturers, such as Rehau, APCB, Reydel, Hanon Systems, Mitsuba, Heycoustics and others. Very good geographical location in relation to other car manufacturers in that part of Europe, experience in the automotive industry, good customers portfolio and technologies the company uses and develops are some of the most important reasons for this acquisition.

In the reporting period balance sheet of Tisza Automotive d.o.o. has been consolidated and the results have been consolidated from the date of acquisition. Operating revenue of Tisza Automotive for aforementioned period amounts to HRK 22.7 million.

A 10 percent revenue growth in the medium term is an expected impact of Tisza Automotive on Group's revenue.

A

Key performance indicators

	AD Plastik Group			AD Plastik d.d.
Indicators (in HRK 000)	3Q 2017	3Q 2018	Index	3Q 2017	3Q 2018	Index
Operating revenue	779,536	939,394	120.51	588,472	692,530	117.68
Sales revenue	766,852	931,427	121.46	579,009	681,299	117.67
Operating expenses	724,470	871,347	120.27	560,689	664,762	118.56
EBITDA	117,491	128,943	109.75	66,435	67,596	101.75
EBITDA of the last 4 quarters	153,972	169,885	110.33	91,154	92,315	101.27
Net profit	41,661	60,091	144.24	36,120	63,184	174.93
NFD	344,276	402,383	116.88	344,022	349,346	101.55
NFD/EBITDA of the last 4 quarters	2.24	2.37	105.80	3.77	3.78	100.27
EBITDA margin	15.07%	13.73%	-134 bps	11.29%	9.76%	-153 bps
Net profit margin	5.34%	6.40%	106 bps	6.14%	9.12%	298 bps
ROE	8.81%	12.03%	322 bps	5.90%	11.61%	571 bps
CAPEX	56,445	57,931	102.63	49,365	40,713	82.47

Operating expenses

Operating expenses in the reporting period demonstrate a similar growth dynamics as operating revenue. Positive trend of lower growth in operating expenses compared to the operating revenue has been slowed in the observed period, due to the already mentioned seasonality of the third quarter.

Operating expenses	AD Plastik Group			AD Plastik d.d.
(in HRK 000)	3Q 2017	3Q 2018	Index	3Q 2017	3Q 2018	Index
OPERATING EXPENSES	724,470	871,347	120.27	560,689	664,762	118.56
Changes in the value of work in process and finished products	1,440	2,552	177.22	-87	1,475	-1,702.56
Material costs	475,601	597,717	125.68	390,806	477,795	122.26
Staff costs	137,305	164,929	120.12	96,307	114,557	118.95
Amortization	62,425	60,895	97.55	38,652	39,828	103.04
Other costs	39,360	37,294	94.75	29,040	27,298	94.00
Provisions	2,893	888	30.69	2,506	568	22.67
Other operating expenses	5,446	7,072	129.86	3,465	3,241	93.53

Net financial result

In the reporting period, AD Plastik Group and the parent company AD Plastik d.d. have achieved a significantly more favorable net financial result compared to the same period last year. Regarding AD Plastik Group, more favorable financial result has been achieved due to lower foreign exchange losses and lower financing costs, while the parent company has achieved even more favorable financial result due to dividends received from the affiliated company EAPS from Romania. Compared to the same period last year, the foreign exchange losses in the parent company are significantly lower since the parent company is no longer exposed to the impact of the ruble exchange rate.

Net financial result	AD Plastik Group			AD Plastik d.d.
(in HRK 000)	3Q 2017	3Q 2018	Index	3Q 2017	3Q 2018	Index
FINANCIAL REVENUE	19,713	18,360	93.14	45,919	50,505	109.99
Foreign exchange gains	19,162	18,093	94.42	10,864	6,505	59.88
Interest income	541	261	48.24	3,566	3,104	87.06
Dividends	9	6	60.00	31,490	40,895	129.87
FINANCIAL EXPENSES	60,899	51,833	85.11	37,652	15,088	40.07
Foreign exchange losses	47,879	44,058	92.02	25,329	7,891	31.15
Interest expenses	13,020	7,775	59.72	12,323	7,197	58.40
FINANCIAL RESULT	-41,186	-33,473	81.27	8,267	35,417	428.39

Financial position

Financial position of AD Plastik Group and AD Plastik d.d. is stable, but it has been changed compared to the last reporting period due to the acquisition of Tisza Automotive d.o.o. and the summer shutdown of the customers' factories in the third quarter.

NFD/EBITDA amounts to 2.37 at the level of the Group, i.e. 3.78 in the parent company. Increased indebtedness is the result of financing the acquisition of Tisza Automotive by means of bank loan and consolidation of the credit obligations of the acquired company. In the forthcoming period we do not expect growth of NFD / EBITDA, i.e. we will continue with the trend of decreasing indebtedness along with further EBITDA growth of the parent company and the Group.

Debt ratios as of the last day of the reporting period amount to 0.47 at the level of the Group, that is 0.43 at the level of the parent company.

The significant net profit growth has also reflected on return on capital (ROE) growth in the observed period, which amounts to 12.03 percent at the level of AD Plastik Group, that is 11.61 percent at the level of the parent company, in the reporting period.

Abbreviated balance sheet	AD Plastik Group		AD Plastik d.d.
(in HRK 000)	2017	3Q 2018	Index	2017	3Q 2018	Index
ASSETS	1,351,315	1,492,967	110.48	1,225,054	1,284,876	104.88
Noncurrent assets	918,702	959,456	104.44	850,423	855,723	100.62
Current assets	403,850	511,784	126.73	346,702	408,888	117.94
Prepaid expenses	28,764	21,727	75.54	27,928	20,265	72.56
LIABILITIES	601,527	730,541	121.45	529,392	574,947	108.61
Provisions	15,399	15,081	97.94	12,096	12,497	103.31
Noncurrent liabilities	204,298	270,698	132.50	202,445	224,476	110.88
Current liabilities	367,544	428,014	116.45	304,698	324,374	106.46
Accrued expenses	14,286	16,748	117.24	10,153	13,601	133.96
CAPITAL	749,788	762,426	101.69	695,661	709,928	102.05

Operating revenue per sales markets

of AD Plastik Group, without affiliated companies

A

EU and Serbian markets Russian market

In the reporting period, AD Plastik Group, to which a new company Tisza Automotive has been associated, has generated a revenue in the amount of HRK 688.25 million which is by 20.81 percent higher compared to the same period last year. Operating revenue generated on this market make 73.27 percent of the total Group revenue. The growth of said revenue is mostly affected by realization of the new projects for Renault, Ford, Volkswagen and Fiat. Due to the negative impact of the kuna strengthening, compared to the average value of the kuna in 2017, the generated revenue in the reporting period decreased by HRK 2.3 million.

In the first nine months of 2018, the number of newly registered vehicles on the automotive industry market increased by 2.5 percent compared to the same period last year, which is in line with the expected growth. Demand for new vehicles is highest in Spain (11.7 percent), France (6.5 percent) and Germany (2.4 percent), while Italy (2.8 percent) and Great Britain (7.5 percent) recorded a decrease. Key producers on the EU market are the following: VW Group, which holds 24.2 percent of the market, with a 5.6 percent growth in this period, PSA Group with 16.2 percent which recorded a growth of 54.9 percent (purchase of Opel) and Renault Group with 10.7 percent which recorded a growth of 6.5 percent. Key customers of AD Plastik Group on this market are the Renault Group, the FCA Group, the PSA Group and Ford.

Movement on the EU market in September was marked by the introduction of a new procedure for fuel consumption measurement, that is CO2 emissions measurement, WLTP (Worldwide Harmonised Light Vehicle Test Procedure). WLTP has entered into force on 1 September, 2018 replacing the previous NEDC procedure and representing considerably stricter Eco standards for car manufacturers. The introduction of WLTP did not affect our customers orders.

New deals with customers Ford, PSA Group and Hella were sealed in the first nine months for the EU and Serbian markets with a total value EUR 110.7 million.

AD Plastik Group's revenue realized on the Russian market for the first nine months amounts to HRK 251.15 million and it is by 19.70 percent higher compared to the same period last year. The revenue growth is higher than the total market growth of 14.9 percent because of the good sales of the vehicle models whose components we are producing. The operating revenue from this market makes 26,73 percent of total sales revenue of the Group. The average ruble in the first nine months of 2018 is significantly weaker compared to the same period last year, which has a negative effect on the Group revenue generated from this market. We control the negative influence of the ruble by regular adjustment of sales prices in accordance with exchange rate changes.

In the observed period, a total of 1.297.432 of the new vehicles has been registered, representing 14.9 percent more compared to the same period last year.

Key producers on the Russian market are the Renault-Nissan-AvtoVAZ Group, which holds 33.7 percent of the market, with a growth of 11.7 percent in this period, Hyundai/Kia Group which holds 23 percent of the market, with a growth of 20 percent and VW Group, which holds 11.5 percent of the market, with a growth of 19.8 percent compared to the same period last year. The key customer of the AD Plastik Group in this market is the Renault-Nissan-AvtoVAZ Group, while the VW Group becomes more and more significant. Forecasts are showing a growth slowing down by the end of the year, amounting to 13 percent for the year.

New deals with customers Renault and Volkswagen were sealed in the first nine months with the total value of EUR 25.5 million.

A

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

In order to present a clearer picture of business, a comparable, shortened, consolidated profit and loss account of AD Plastik Group for the first nine months of 2017 and 2018 has been created, with profit and loss account of the affiliated company Euro Auto Plastic Systems s.r.l. Mioveni, Romania (50 percent of ownership of AD Plastik d.d.)

			In HRK 000
Positions	3Q 2017	3Q 2018	Index
OPERATING REVENUE	1,071,772	1,234,961	115.23
OPERATING EXPENSES	979,248	1,130,705	115.47
Material costs	653,611	780,676	119.44
Staff costs	177,165	203,559	114.90
Amortization	65,941	65,665	99.58
Other costs	82,531	80,804	97.91
FINANCIAL REVENUE	19,713	18,360	93.14
FINANCIAL EXPENSES	61,141	52,156	85.30
TOTAL REVENUE	1,091,485	1,253,321	114.83
TOTAL EXPENSES	1,040,389	1,182,861	113.69
Profit before taxation	51,096	70,460	137.90
Profit tax	9,436	10,368	109.89
PROFIT OF THE PERIOD	41,661	60,091	144.24
EBITDA	158,466	169,921	107.23

Operating revenue of AD Plastik Group with consolidated corresponding part of ownership in affiliated company amounts to HRK 1.234 million, representing a growth of 15.23 percent in the observed period. EBITDA amounts to HRK 169.92 million and it records a growth of 7.23 percent compared to the previous year.

Results of the affiliated company have been included in the results of AD Plastik Group by equity method. Affiliated company has no financial liability towards AD Plastik d.d. nor loan obligations towards external entities.

AD Plastik Group with consolidation

of the corresponding part of ownership in affiliated companies

Abbreviated P/L of the company EAPS in HRK 000

Positions	3Q 2017	3Q 2018	Index
Operating revenue	602,698	607,971	100.87
Operating expenses	527,792	535,555	101.47
Net financial result	-483	-646	133.53
Profit before taxation	74,422	71,771	96.44
Income tax	16,662	13,375	80.27
Profit of the period	57,760	58,396	101.10

Abbreviated balance sheet of the company EAPS in HRK 000

Positions	2017	3Q 2018	Index
Noncurrent assets	62,542	66,461	106.27
Current assets	366,108	247,611	67.63
TOTAL ASSETS	428,650	314,072	73.27
Capital + reserves	182,924	129,995	71.07
Provisions	10,405	30,188	290.13
Current liabilities	235,321	153,888	65.39
TOTAL LIABILITIES	428,650	314,072	73.27

During the reporting period, the affiliated company EAPS generated revenue amounting to HRK 608.0 million, which is a slightly higher revenue compared to the same period last year. EBITDA amounts to HRK 82.0 million, representing a margin of 13.48 percent.

The Company primarily generates revenue on domestic, Romanian market. Apart from said market, Euro APS supplies its products to the markets of Algeria, Morocco, Iran, Brazil, Colombia, South Africa, Russia etc. The company's dividend policy remains unchanged – 100 percent of profit is paid.

Share

Ownership structure on September 30th 2018

	Shareholder	Number of shares	Share
1	OAO HAK	1,259,875	30.00%
2	Pension funds	909,134	21.65%
3	Management and employees	602,368	14.34%
4	Other institutional investors	527,076	12.55%
5	Small shareholders	835,792	19.90%
6	Treasury shares	65,339	1.56%
	TOTAL	4,199,584	100.00%

In the last year the price of ADPL share increased by 12 percent and on September 30th, 2018 it amounted to HRK 181.5, while CROBEX in the same period decreased by 1.6 percent. Market capitalization of the company on September 30th, 2018 amounted to HRK 762.22 million.

A dividend payment in the total amount of HRK 41.3 million, that is HRK 10 per share was made in August. During the first nine months, the Company acquired 50.057 and disposed 6.155 of its own shares.

ADPL (HRK)	3Q 2017	3Q 2018	Index
Highest price	176.0	203.0	115.4
Lowest price	137.1	169.0	123.2
Final price	162.0	181.5	112.0
Volume	317,538.0	232,909.0	73.3
Turnover	49,399,235.7	43,829,357.0	88.7
Market capitalization	680,332,608.0	762,224,496.0	112.0
P/E	11.3	12.7	112.3

ADPL share price and index CROBEX behavior

+12.0% -1.6%

Financial report

of AD Plastik Group

Balance sheet	21
Profit and loss account	23
Cash flow (indirect method)	25
Report on changes in equity	26

B

MANAGEMENT REPORT AD PLASTIK GROUP

A

CONTENTS

Appendix 1 Quarterly financial report, AD Plastik Group

1. 1. 2018 30. 9. 2018 Reporting period: to
------------------------------------------------------	--

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): 2,869
Consolidated report:	YES	NCA code:2932
Names of consolidation subjects (according to IMSF):	Seat:		REG. NO.:
AD PLASTIK d.d.	Solin, Croatia		03440494
AO AD PLASTIK			Samara, Russian Federation1036300221935
AD PLASTIK d.o.o.	Novo Mesto, Slovenia		1214985000
ZAO AD PLASTIK KALUGA			Kaluga, Russian Federation 1074710000320
ADP d.o.o.	Mladenovac, Serbia		20787538
TISZA AUTOMOTIVE Kft.	Tiszaújváros, Hungary		12800821-2932-133-05
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 reports (balance sheet, profit and loss account, cash flow report, changes in equity and notes to financial reports)
• 1. Interim report
• 1. Statement of the person responsible for compiling financial statements

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

Balance sheet as at 30. 9. 2018, Taxpayer: AD Plastik Group

	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	918,701,692	959,455,861
	I. Intangible assets (004 up to 009)	003	113,680,143	134,493,540
	1 Development costs	004	81,424,460	64,550,959
	2 Concessions, patents, licenses, trademarks, softwares and other rights	005	1,745,971	2,567,400
	3 Goodwill	006	8,669,395	35,687,347
	4 Advances for purchase of intangible assets	007	0	0
	5 Intangible assets in preparation	008	20,152,371	29,843,638
	6 Other intangible assets	009	1,687,947	1,844,196
	II. Tangible assets (011 up to 019)	010	704,316,531	739,812,498
	1 Land	011	134,690,096	134,634,043
	2 Buildings	012	232,065,397	250,680,511
	3 Plants and machinery	013	225,797,938	221,792,230
	4 Tools, plant & office inventory, furniture & transport means	014	18,364,128	21,987,090
	5 Biological assets	015	0	0
	6 Payments on account for tangible assets	016	2,605,380	60,589
	7 Tangible assets in preparation	017	35,657,645	52,680,096
	8 Other tangible assets	018	370,652	514,205
	9 Investment in real estate	019	54,765,296	57,463,736
	III. Fixed financial assets (021 up to 028)	020	99,930,539	85,230,302
	1 Shares in affiliated undertakings	021	0	0
	2 Loans to affiliated undertakings	022	0	0
	3 Participating interests (shares)	023	96,859,971	85,168,602
	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	3,008,868	0
	7 Other fixed financial assets	027	0	0
	8 Investment stated in equity method	028	0	0
	IV. Receivables (030 up to 032)	029	63,200	39,183
	1 Receivables from associated undertakings	030	0	0
	2 Receivables from sales on credit	031	0	0
	3 Other receivables	032	63,200	39,183
	V. Deffered tax assets	033	711,279	-119,662
C	CURRENT ASSETS (035+043+050+058)	034	403,849,533	511,783,653
	I. Inventory (036 up to 042)	035	155,235,497	187,934,454
	1 Materials and supplies	036	95,279,285	122,559,944
	2 Work in progress	037	6,274,511	13,287,561
	3 Finished goods	038	23,943,319	24,315,338
	4 Commercial goods	039	22,593,333	18,043,341
	5 Advances for inventories	040	7,145,048	9,728,271
	6 Long term assets held for sale	041	0	0
	7 Biological assets	042	0	0
	II. Receivables (044 up to 049)	043	237,388,977	306,140,324
	1 Receivables from associated undertakings	044	0	0
	2 Trade receivables	045	193,308,591	223,602,122
	3 Receivables from participating companies	046	5,368,624	2,669,786
	4 Receivables from employees and members of the business	047	99,102	384,844
	5 Receivables from government and other institutions	048	18,996,370	21,211,324
	6 Other receivables	049	19,616,290	58,272,248
	III. Current financial assets (051 up to 057)	050	1,002,956	108,499
	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	1,002,956	108,499
	7 Other financial assets	057	0	0
	IV. Cash at bank and in hand	058	10,222,103	17,600,376
D	PREPAYMENT AND ACCRUED INCOME	059	28,763,502	21,727,126
E	TOTAL ASSETS (001+002+034+059)	060	1,351,314,727	1,492,966,640

F OFF BALANCE SHEET ITEMS 061 33,421,996 52,099,827

Balance sheet as at 30. 9. 2018, Taxpayer: AD Plastik Group

	Item 1	AOP ind. 2	Preceding year 3	Current year 4
LIABILITIES
A	CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	749,788,089	762,426,003
	I. SUBSCRIBED SHARE CAPITAL	063	419,958,400	419,958,400
	II. CAPITAL RESERVES	064	192,108,521	192,274,484
	III. RESERVES FROM GAIN (066+067-068+069+070)	065	-11,702,437	-21,130,970
	1 Legal reserves	066	6,135,540	6,135,540
	2 Reserves for own shares	067	3,319,612	11,060,655
	3 Own stocks and shares (deductible item)	068	3,319,612	11,060,655
	4 Statutory reserves	069	125,369	125,369
	5 Other reserves	070	-17,963,346	-27,391,879
	IV. REVALUATION RESERVES	071	-1,003,313	-795,878
	V. RETAINED EARNINGS OR LOSS BROUGHT FORWARD (073-074)	072	80,220,651	112,028,583
	1 Retained earnings	073	80,220,651	112,028,583
	2 Loss brought forward	074	0	0
	VI. CURRENT YEAR PROFIT OR LOSS (076-077)	075	70,206,243	60,091,292
	1 Current year profit	076	70,206,243	60,091,292
	2 Current year loss	077	0	0
	VII. MINOR INTEREST	078	23	93
B	PROVISIONS (080 up to 082)	079	15,398,504	15,080,862
	1 Provisions for pensions, severance pay and similar obligations	080	2,205,229	2,202,119
	2 Provisions for tax liabilities	081	0	0
	3 Other provisions	082	13,193,275	12,878,744
C	LONG TERM LIABILITIES (084 up to 092)	083	204,298,064	270,697,810
	1 Liabilities to related parties	084	0	0
	2 Commitments for loans, deposits, etc	085	0	6,741,853
	3 Liabilities to banks and other financial institutions	086	196,700,765	259,456,047
	4 Liabilities for advances	087	0	0
	5 Trade payables	088	7,597,299	3,954,219
	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	545,690
	9 Deferred tax liabilities	092	0	0
D	SHORT TERM LIABILITIES (094 do 105)	093	367,544,478	428,013,698
	1 Liabilities to related parties	094	0	0
	2 Commitments for loans, deposits, etc	095	1,661,144	411,082
	3 Liabilities to banks and other financial institutions	096	134,868,390	154,222,003
	4 Liabilities for advances	097	30,154,349	72,405,004
	5 Trade payables	098	178,453,012	165,471,128
	6 Commitments on securities	099	0	0
	7 Liabilities to companies in which are participating interests	100	5,020	4,520
	8 Liabilities towards employees	101	10,162,419	12,609,664
	9 Liabilities for taxes, contributions and other benefits	102	12,177,049	21,709,540
	10 Liabilities to share in the result	103	27,856	1,126,663
	11 Amount based on fixed assets intended to sale	104	0	0
	12 Other short-term liabilities	105	35,240	54,094
E	DEFERRED PAYMENT OF COSTS AND FUTURE INCOME	106	14,285,592	16,748,268
F	TOTAL LIABILITIES (062+079+083+093+106)	107	1,351,314,727	1,492,966,640
G	OFF BALANCE SHEET ITEMS	108	33,421,996	52,099,827

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	749,788,066	762,425,910
	2 Ascribed to minority interest	110	23	93

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

A

B

Profit and loss account Reporting period: 1. 1. 2018 to 30. 9. 2018

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	779,535,921	248,236,279	939,394,451	304,665,486
	1 Income from sales	112	766,852,020	246,588,802	931,426,883	305,351,217
	2 Other operating income	113	12,683,901	1,647,477	7,967,569	-685,731
II.	OPERATING CHARGES (115+116+120+124+125+126+129+130)	114	724,469,775	236,640,380	871,346,721	296,269,916
	1 Changes in the value of inventories of work in progress and finished goods	115	1,439,625	-1,720,541	2,552,463	-5,623,314
	2 Material charges (117 up to 119)	116	475,601,110	157,362,080	597,717,077	206,975,142
	a Costs of raw materials and consumables	117	396,584,991	128,283,285	491,089,919	160,640,893
	b Costs of sales	118	27,404,140	11,845,239	44,931,982	27,443,792
	c Other external charges	119	51,611,979	17,233,556	61,695,176	18,890,458
	3 Staff costs (121 up to 123)	120	137,304,686	47,706,527	164,928,650	57,792,590
	a Salaries and wages	121	86,807,891	29,887,798	103,671,813	36,142,083
	b Costs of taxes and social security	122	28,651,697	10,408,258	34,829,598	12,373,869
	c Duties on wages	123	21,845,098	7,410,470	26,427,239	9,276,638
	4 Depreciation	124	62,424,917	20,533,322	60,894,888	20,627,330
	5 Other costs	125	39,360,346	11,461,792	37,294,010	13,836,110
	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	2,893,029	387,109	887,852	-496,662
	8 Other operating expenses	130	5,446,062	910,092	7,071,781	3,158,719
III.	FINANCIAL INCOME (132 up to 136)	131	19,712,643	5,386,258	18,359,557	4,647,738
	1 Interests, exchange rate difference, dividends with affiliates	132	9,113,625	2,423,071	8,113,503	3,319,556
	2 Interests, exchange rate difference, dividends with non-affiliates	133	10,582,530	2,951,231	10,246,053	1,328,182
	3 Part of income from affiliates and participated interests	134	16,488	11,956	0	0
	4 Non-realized financial income	135	0	0	0	0
	5 Other financial income	136	0	0	0	0
IV.	FINANCIAL CHARGES (138 up to 141)	137	60,898,816	18,982,692	51,832,975	14,781,618
	1 Interests, exchange rate difference, dividends with affiliates	138	33,930,545	10,557,801	33,355,344	12,570,859
	2 Interests, exch. rate difference, dividends with non-affiliates	139	26,968,271	8,424,890	18.477.631	2,210,759
	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	28,884,578	5,724,486	29,197,939	6,354,574
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	828,133,142	259,347,024	986,951,947	315,667,798
X.	TOTAL CHARGES (114+137+143 + 145)	147	785,368,590	255,623,072	923,179,696	311,051,534
XI.	PROFIT OR LOSS BEFORE TAXATION (146-147)	148	42,764,552	3,723,952	63,772,251	4,616,264
	1 Profit before taxation (146-147)	149	42,764,552	3,723,952	63,772,251	4,616,264
	2 Loss before taxation (147-146)	150	0	0	0	0
XII.	PROFIT TAX	151	1,103,892	973,888	3,680,889	825,036
XIII	PROFIT OR LOSS FOR THE PERIOD (148-151)	152	41,660,660	2,750,064	60,091,361	3,791,228
	1 PROFIT FOR THE PERIOD (149-151)	153	41,660,660	2,750,064	60,091,361	3,791,228
	2 LOSS FOR THE PERIOD (151-148)	154	0	0	0	0

Profit and loss account Reporting period: 1. 1. 2018 to 30. 9. 2018

Taxpayer: AD Plastik Group

	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	41,660,626	2,750,069	60,091,292	3,791,210
	2 Attributable to minority interests	156	35	-5	69	18

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

I.	PROFIT OR LOSS FOR THE CURRENT PERIOD (= 152)	157	41,660,660	2,750,064	60,091,361	3,791,228
II.	OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAXATION (159 up to 165)	158	-18,082,774	-2,403,174	-7,878,146	-218,579
	1 Exchange differences on translation of foreign operations	159	-13,650,977	-955,966	-7,878,146	-218,579
	2 Movements in revaluation reserves of fixed and intangible assets	160	-4,407,723	-1,423,133	0	0
	3 Profit or loss from revaluation of financial assets available for sale	161	0	0	0	0
	4 Gains or losses on effective cash flow protection	162	0	0	0	0
	5 Gains or losses on effective hedge of a net investment abroad	163	0	0	0	0
	6 Share of other comprehensive income / loss of associated compa nies	164	0	0	0	0
	7 Actuarial gains / losses on defined benefit plans	165	0	0	0	0
III.	TAX ON OTHER COMPREHENSIVE INCOME FOR THE CURRENT PERIOD	166	-2,702,388	-240,772	-1,238,131	84,175
IV.	OTHER COMPREHENSIVE NET PROFIT OR LOSS (158-166)	167	-15,380,387	-2,162,401	-6,640,015	-302,753
V.	OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD (157+167)	168	26,280,274	587,663	53,451,347	3,488,475

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	26,280,312	587,741	53,451,280	3,488,428
	2 Attributable to minority interests	170	-38	-78	66	47

Cash flow report

indirect method Reporting period: 1. 1. 2018 to 30. 9. 2018 Taxpayer: AD Plastik Group

Item	AOP ind.	Preceding period	Current period
1	2	3	4
CASH FLOW FROM OPERATING ACTIVITIES
1 Profit before taxation	001	42,764,552	63,772,251
2 Depreciation	002	62,424,917	60,894,888
3 Increase of current liabilities	003	25,342,789	3,890,487
4 Decrease of current receivables	004	0	0
5 Decrease in stocks	005	0	0
6 Other increase of cash flow	006	58,410,319	42,990,703
I. Total increase of cash flow from operating activities (001 - 006)	007	188,942,576	171,548,328
1 Decrease of current liabilities	008	0	0
2 Increase of current receivables	009	93,071,295	51,005,140
3 Increase in stocks	010	21,478,987	1,883,203
4 Other decrease of cash flow	011	39,294,564	37,295,304
II. Total decrease of cash flow from operating activities (008 – 011)	012	153,844,845	90,183,647
A1 NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	013	35,097,731	81,364,681
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	1,202,339	3,070,179
2 Cash inflows from sale of ownership and debt instruments	016	0	0
3 Cash inflows from interest	017	9,757,973	260,701
4 Cash inflows from dividends	018	31,282,062	54,452,290
5 Other cash inflows from investment activities	019	50,216,331	8,463,799
III. Total cash inflows from investment activities (015-019)	020	92,458,704	66,246,969
1 Cash expenditures for purchase of fixed tangible and intangible assets	021	56,444,866	57,930,517
2 Cash expenditures for acquisition of ownership and debt instruments	022	0	70,757,945
3 Other cash expenditures from investment activities	023	0	0
IV. Total cash expenditures from investment activities (021-023)	024	56,444,866	128,688,462
B1 NET INCREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (020-024)	025	36,013,839	0
B2 NET DECREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (024-020)	026	0	62,441,492
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	213,574,745	127,932,892
3 Other inflows from financial activities	029	0	0
V. Total cash inflows from financial activities (027-029)	030	213,574,745	127,932,892
1 Cash expenditures for the payment of credit principal and debentures	031	249,199,011	88,947,910
2 Cash expenditures for the payment of dividends	032	35,489,263	41,342,450
3 Cash expenditures for financial lease	033	2,341,451	404,480
4 Cash expenditures for repurchase of own shares	034	0	8,782,968
5 Other cash expenditures from financial activities	035	0	0
VI. Total cash expenditures from financial activities (031-035)	036	287,029,725	139,477,808
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	73,454,980	11,544,916
Total cash flow increase (013-014+025-026+037-038)	039	0	7,378,273
Total cash flow decrease (014-013+026-025+038-037)	040	2,343,411	0
Cash and cash equivalents at the beginning of the period	041	10,422,413	10,222,103
Cash and cash equivalents increase	042	0	7,378,273
Cash and cash equivalents decrease	043	2,343,411	0
Cash and cash equivalents at the end of the period	044	8,079,002	17,600,376

Report on changes in equity Reporting period: 1. 1. 2018 to 30. 9. 2018

Taxpayer: AD Plastik Group

Item 1	AOP ind. 2	Preceding period 3	Current period 4
1 Subscribed capital	001	419,958,400	419,958,400
2 Capital reserves	002	191,971,409	192,274,484
3 Reserves from profit	003	-10,623,172	-21,130,970
4 Retained profit or loss carried over	004	79,882,614	112,028,583
5 Current year profit or loss	005	41,660,626	60,091,292
6 Revalorisation of fixed material assets	006	15,728,861	10,711,561
7 Revalorisation of intangible assets	007	0	0
8 Revalorisation of financial assets available for sale	008	0	0
9 Other revalorisation	009	-26,919,581	-11,507,346
10 Total equity and reserves (AOP 001-009)	010	711,659,156	762,426,003
11 Exchange rate variations from net investments into foreign business operations	011	-13,650,977	-7,878,146
12 Current and deferred taxes (part)	012	1,598,496	-2,442,758
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	26,326,150	22,958,818
17 Total equity increase or decrease (AOP 011 - 016)	017	14,273,669	12,637,914
17 a Ascribed to holders of the holders company capital	018	14,273,634	12,637,844
17 b Ascribed to minority interest	019	35	69

Items reducing Capital are entered with negative sign.

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

Financial report

of the company AD Plastik

Balance sheet	29
Profit and loss account	31
Cash flow (indirect method)	33
Report on changes in equity	34

C

AD PLASTIK D.D.

MANAGEMENT REPORT AD PLASTIK GROUP

A

CONTENTS

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

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):		1,459
Consolidated report:	NO	NCA code:	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 reports (balance sheet, profit and loss account, cash flow report, changes in 1.

• equity and notes to financial reports)
• 1. Interim report
• 1. Statement of the person responsible for compiling financial statements

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

as at 30. 9. 2018 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	850,423,432	855,723,252
	I. Intangible assets (004 up to 009)	003	86,472,232	80,404,083
	1 Development costs	004	68,398,141	52,713,244
	2 Concessions, patents, licenses, trademarks, softwares and other rights	005	1,686,636	2,500,372
	3 Goodwill	006	0	0
	4 Advances for purchase of intangible assets	007	0	0
	5 Intangible assets in preparation	008	16,387,455	25,190,467
	6 Other intangible assets	009	0	0
	II. Tangible assets (011 up to 019)	010	518,648,458	520,143,199
	1 Land	011	131,402,572	130,551,809
	2 Buildings	012	153,369,021	148,208,527
	3 Plants and machinery	013	134,139,995	123,009,683
	4 Tools, plant & office inventory, furniture & transport means	014	12,628,780	13,566,281
	5 Biological assets	015	0	0
	6 Payments on account for tangible assets	016	0	0
	7 Tangible assets in preparation	017	35,551,267	50,087,890
	8 Other tangible assets	018	0	0
	9 Investment in real estate	019	51,556,823	54,719,009
	III. Fixed financial assets (021 up to 028)	020	167,758,912	216,890,001
	1 Shares in affiliated undertakings	021	44,383,495	115,342,846
	2 Loans to affiliated undertakings	022	98,525,695	79,706,301
	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	3,008,868	0
	7 Other fixed financial assets	027	0	0
	8 Investment stated in equity method	028	0	0
	IV. Receivables (030 up to 032)	029	76,924,690	37,666,830
	1 Receivables from associated undertakings	030	76,924,690	37,666,830
	2 Receivables from sales on credit	031	0	0
	3 Other receivables	032	0	0
	V. Deffered tax assets	033	619,139	619,139
C	CURRENT ASSETS (035+043+050+058)	034	346,701,806	408,887,748
	I. Inventory (036 up to 042)	035	75,785,490	92,715,025
	1 Materials and supplies	036	54,839,972	72,367,656
	2 Work in progress	037	4,465,402	3,874,360
	3 Finished goods	038	13,389,605	12,505,352
	4 Commercial goods	039	3,090,510	3,967,657
	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	266,769,702	309,207,378
	1 Receivables from associated undertakings	044	88,126,966	120,339,708
	2 Trade receivables	045	145,714,721	120,498,686
	3 Receivables from participating companies	046	3,872,094	1,854,324
	4 Receivables from employees and members of the business	047	2,477	189,322
	5 Receivables from government and other institutions	048	11,717,118	10,472,846
	6 Other receivables	049	17,336,326	55,852,492
	III. Current financial assets (051 up to 057)	050	1,002,956	2,893,307
	1 Shares in affiliated undertakings	051	0	0
	2 Loans to affiliates	052	0	2,784,808
	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	1,002,956	108,499
	7 Other financial assets	057	0	0
	IV. Cash at bank and in hand	058	3,143,658	4,072,038
D	PREPAYMENT AND ACCRUED INCOME	059	27,928,384	20,264,602
E	TOTAL ASSETS (001+002+034+059)	060	1,225,053,622	1,284,875,602
F	OFF BALANCE SHEET ITEMS	061	5,829,941	22,580,509

A

as at 30. 9. 2018 Balance sheet Taxpayer: AD Plastik d.d.

	Item 1	AOP ind. 2	Preceding year 3	Current year 4
PASIVA
A	CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	695,661,445	709,928,116
	I. SUBSCRIBED SHARE CAPITAL	063	419,958,400	419,958,400
	II. CAPITAL RESERVES	064	191,702,413	191,868,376
	III. RESERVES FROM GAIN (066+067-068+069+070)	065	27,739,682	19,998,639
	1 Legal reserves	066	6,128,852	6,128,852
	2 Reserves for own shares	067	3,319,612	11,060,655
	3 Own stocks and shares (deductible item)	068	3,319,612	11,060,655
	4 Statutory reserves	069	0	0
	5 Other reserves	070	21,610,830	13,869,787
	IV. REVALUATION RESERVES	071	0	0
	V. RETAINED EARNINGS OR LOSS BROUGHT FORWARD (073-074)	072	2,861,551	14,918,500
	1 Retained earnings	073 074	2,861,551 0	14,918,500 0
	2 Loss brought forward
	VI. CURRENT YEAR PROFIT OR LOSS (076-077)	075	53,399,399	63,184,201
	1 Current year profit	076	53,399,399	63,184,201
	2 Current year loss	077	0	0
	VII. MINOR INTEREST	078	0	0
B	PROVISIONS (080 up to 082)	079	12,095,897	12,496,653
	1 Provisions for pensions, severance pay and similar obligations	080	1,934,116	1,934,116
	2 Provisions for tax liabilities	081	0	0
	3 Other provisions	082	10,161,781	10,562,537
C	LONG TERM LIABILITIES (084 up to 092)	083	202,445,340	224,475,562
	1 Liabilities to related parties	084	0	0
	2 Commitments for loans, deposits, etc	085	0	600,000
	3 Liabilities to banks and other financial institutions	086	196,700,765	221,439,287
	4 Liabilities for advances	087	0	0
	5 Trade payables	088	5,744,576	2,436,275
	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	304,697,571	324,374,094
	1 Liabilities to related parties	094	13,321,221	8,380,728
	2 Commitments for loans, deposits, etc	095	0	0
	3 Liabilities to banks and other financial institutions	096	128,022,622	131,979,371
	4 Liabilities for advances	097	5,766,975	57,422,285
	5 Trade payables	098	145,331,071	113,066,602
	6 Commitments on securities	099	0	0
	7 Liabilities to companies in which are participating interests	100	5,020	4,520
	8 Liabilities towards employees	101	7,712,525	8,663,724
	9 Liabilities for taxes, contributions and other benefits	102	4,492,592	4,829,009
	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	0
E	DEFERRED PAYMENT OF COSTS AND FUTURE INCOME	106	10,153,369	13,601,176
F	TOTAL LIABILITIES (062+079+083+093+106)	107	1,225,053,622	1,284,875,602
G	OFF BALANCE SHEET ITEMS	108	5,829,941	22,580,509

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.

A

Profit and loss account Reporting period: 1. 1. 2018 to 30. 9. 2018

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	588,472,271	187,543,175	692,529,527	195,307,566
		1 Income from sales	112	579,008,908	184,544,063	681,299,250	192,474,569
		2 Other operating income	113	9,463,363	2,999,112	11,230,277	2,832,997
II.		OPERATING CHARGES (115+116+120+124+125+126+129+130)	114	560,689,436	183,311,950	664,761,871	200,792,937
		1 Changes in the value of inventories of work in progress and finished goods	115	-86,651	-534,588	1,475,295	-2,778,236
		2 Material charges (117 up to 119)	116	390,805,718	127,920,174	477,795,322	142,512,322
		a Costs of raw materials and consumables	117	271,529,090	82,663,569	335,380,383	99,944,443
		b Costs of sales	118	81,729,923	32,700,359	90,695,666	24,546,337
		c Other external charges	119	37,546,705	12,556,246	51,719,273	18,021,541
		3 Staff costs (121 up to 123)	120	96,306,803	34,027,525	114,556,595	36,976,405
		a Salaries and wages	121	59,523,388	20,819,521	70,879,119	23,011,969
		b Costs of taxes and social security	122	23,239,412	8,486,354	27,531,241	8,843,623
		c Duties on wages	123	13,544,004	4,721,649	16,146,235	5,120,813
		4 Depreciation	124	38,652,327	13,077,184	39,827,939	12,970,776
		5 Other costs	125	29,040,011	8,758,952	27,297,510	8,996,203
		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	2,505,921	0	568,022	-234,108
		8 Other operating expenses	130	3,465,307	62,704	3,241,188	2,349,576
III.		FINANCIAL INCOME (132 up to 136)	131	45,919,424	14,426,055	50,504,524	14,311,119
		1 Interests, exchange rate difference, dividends with affiliates	132	7,075,475	1,889,854	3,306,610	920,551
		2 Interests, exchange rate difference, dividends with non-affiliates	133	7,351,153	2,030,748	6,308,607	-239,201
		3 Part of income from affiliates and participated interests	134	31,492,796	10,505,453	40,889,307	13,629,769
		4 Non-realized financial income	135	0	0	0	0
		5 Other financial income	136	0	0	0	0
IV.		FINANCIAL CHARGES (138 up to 141)	137	37,652,033	11,211,342	15,087,979	-2,363,417
		1 Interests, exchange rate difference, dividends with affiliates	138	14,976,995	3,881,633	3,549,591	-1,321,650
		2 Interests, exchange rate difference, dividends with non-affiliates	139	22,675,038	7,329,709	11,538,388	-1,041,767
		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	634,391,695	201,969,229	743,034,051	209,618,685
X.		TOTAL CHARGES (114+137+143 + 145)	147	598,341,469	194,523,292	679,849,850	198,429,520
XI.		PROFIT OR LOSS BEFORE TAXATION (146-147)	148	36,050,226	7,445,937	63,184,201	11,189,165
		1 Profit before taxation (146-147)	149	36,050,226	7,445,937	63,184,201	11,189,165
		2 Loss before taxation (147-146)	150	0	0	0	0
XII.		PROFIT TAX	151	-69,660	0	0	0
XIII		PROFIT OR LOSS FOR THE PERIOD (148-151)	152	36,119,886	7,445,937	63,184,201	11,189,165
		1 PROFIT FOR THE PERIOD (149-151)	153	36,119,886	7,445,937	63,184,201	11,189,165
		2 LOSS FOR THE PERIOD (151-148)	154	0	0	0	0

A

Profit and loss account Reporting period: 1. 1. 2018 to 30. 9. 2018

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	36,119,886	7,445,937	63,184,201	11,189,165
II.	OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAXATION (159 up to 165)	158	0	0	0	0
	1 Exchange differences on translation of foreign operations	159	0	0	0	0
	2 Movements in revaluation reserves of fixed and intangible assets	160	0	0	0	0
	3 Profit or loss from revaluation of financial assets available for sale	161	0	0	0	0
	4 Gains or losses on effective cash flow protection	162	0	0	0	0
	5 Gains or losses on effective hedge of a net investment abroad	163	0	0	0	0
	6 Share of other comprehensive income / loss of associated compa nies	164	0	0	0	0
	7 Actuarial gains / losses on defined benefit plans	165	0	0	0	0
III.	TAX ON OTHER COMPREHENSIVE INCOME FOR THE CURRENT PERIOD	166	0	0	0	0
IV.	OTHER COMPREHENSIVE NET PROFIT OR LOSS (158-166)	167	0	0	0	0
V.	OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD (157+167)	168	36,119,886	7,445,937	63,184,201	11,189,165

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

C

AD PLASTIK D.D.

Cash flow report

indirect method Reporting period: 1. 1. 2018 to 30. 9. 2018 Taxpayer: AD Plastik d.d.

Item			Preceding period	Current period
	1	2	3	4
	CASH FLOW FROM OPERATING ACTIVITIES
	1 Profit before taxation	001	36,050,226	63,184,201
	2 Depreciation	002	38,652,327	39,827,939
	3 Increase of current liabilities	003	29,217,883	14,618,870
	4 Decrease of current receivables	004	0	0
	5 Decrease in stocks	005	0	0
	6 Other increase of cash flow	006	42,413,036	20,095,025
	I. Total increase of cash flow from operating activities (001 - 006)	007	146,333,473	137,726,035
	1 Decrease of current liabilities	008	0	0
	2 Increase of current receivables	009	73,782,355	15,168,843
	3 Increase in stocks	010	18,097,627	16,929,535
	4 Other decrease of cash flow	011	39,955,632	50,358,472
	II. Total decrease of cash flow from operating activities (008 – 011)	012	131,835,615	82,456,851
	A1 NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	013	14,497,858	55,269,184
	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	1,107,493	2,024,765
	2 Cash inflows from sale of ownership and debt instruments	016	0	0
	3 Cash inflows from interest	017	13,591,847	301,781
	4 Cash inflows from dividends	018	31,282,062	54,452,290
	5 Other cash inflows from investment activities	019	49,592,981	23,216,051
	III. Total cash inflows from investment activities (015-019)	020	95,574,382	79,994,888
	1 Cash expenditures for purchase of fixed tangible and intangible assets	021	49,365,469	40,713,000
	2 Cash expenditures for acquisition of ownership and debt instruments	022	0	70,959,350
	3 Other cash expenditures from investment activities	023	0	0
	IV. Total cash expenditures from investment activities (021-023)	024	49,365,469	111,672,351
	B1 NET INCREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (020-024)	025	46,208,913	0
	B2 NET DECREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (024-020)	026	0	31,677,463
	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	213,574,745	114,415,496
	3 Other inflows from financial activities	029	0	0
	V. Total cash inflows from financial activities (027-029)	030	213,574,745	114,415,496
	1 Cash expenditures for the payment of credit principal and debentures	031	238,525,301	86,602,627
	2 Cash expenditures for the payment of dividends	032	35,485,145	41,342,450
	3 Cash expenditures for financial lease	033	2,341,451	350,792
	4 Cash expenditures for repurchase of own shares	034	0	8,782,968
	5 Other cash expenditures from financial activities	035	0	0
	VI. Total cash expenditures from financial activities (031-035)	036	276,351,898	137,078,837
	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	62,777,153	22,663,340
	Total cash flow increase (013-014+025-026+037-038)	039	0	928,381
	Total cash flow decrease (014-013+026-025+038-037)	040	2,070,382	0
	Cash and cash equivalents at the beginning of the period	041	4,033,311	3,143,658
	Cash and cash equivalents increase	042	0	928,381
	Cash and cash equivalents decrease	043	2,070,382	0

Cash and cash equivalents at the end of the period 044 1,962,929 4,072,964

Report on changes in equity

Reporting period: 1. 1. 2018 to 30. 9. 2018 Taxpayer: AD Plastik d.d.

Item 1	AOP ind. 2	Preceding period 3	Current period 4
1 Subscribed capital	001	419,958,400	419,958,400
2 Capital reserves	002	191,565,301	191,868,376
3 Reserves from profit	003	27,876,794	19,998,639
4 Retained profit or loss carried over	004	2,861,551	14,918,500
5 Current year profit or loss	005	36,119,886	63,184,201
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	-2,522,941	0
10 Total equity and reserves (AOP 001-009)	010	675,858,991	709,928,116
11 Exchange rate variations from net investments into foreign business operations	011	0	0
12 Current and deferred taxes (part)	012	69,660	0
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	10,071,148	14,266,671
17 Total equity increase or decrease (AOP 011 - 016)	017	10,140,807	14,266,671
17 a Ascribed to holders of the holders company capital	018
17 b Ascribed to minority interest	019

Items reducing Capital are entered with negative sign.

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

A

Management's

D

A

MANAGEMENT REPORT AD PLASTIK GROUP

CONTENTS

A

D

Solin, October 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 September 30 2018, 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 September 30 2018, 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.

Marinko Došen, President of the Management Board

Katija Klepo, Member of the Management Board

Sanja Biočić, Member of the Management Board

Mladen Peroš, Member of the Management Board

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

Your needs. Our drive.

Solin, October 2018 www.adplastik.hr