Granolio d.d.

Interim / Quarterly Report • Jul 31, 2019

Consolidated financial results for the six months period ended 30 June 2019 (unaudited)

General information on Granolio d.d.

GRANOLIO d.d. ("The Company") is a joint-stock company registered with the Commercial Court of Zagreb, Croatia. The Company's tax number (OIB) is 59064993527, and its registration number (MBS) 080111595.

The Company's headquarter is located in Zagreb at Budmanijeva 5.

Subsidiaries

The Company holds 100% of the shares in Zdenačka farma d.o.o.

It has a controlling influence in the decision-making process in Zdenka mliječni proizvodi d.o.o. which has been consolidated into the Granolio Group since 2011.

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

Ownership in subsidiaries is presented in the organizational chart below:

Granolio d.d.
Zdenačka farma d.o.o.	Zdenka mliječni proizvodi
100%	d.o.o. 50%

The Group monitors its business operations through four business segments:

• Milling
• Dairy and cheese production
• Wholesale trade
• Other

Milling is the segment that comprises flour production and sale of flour. This business segment is comprised in the holding company exclusively.

Dairy and cheese production ("Dairy") comprises cheese production and cheese sale realized in the company Zdenka – mliječni proizvodi d.o.o., but also milk production and sale of milk by dairy farm in Zdenačka farma d.o.o.

Wholesale trade segment comprises grain and oilseed trade and trade of sowing materials performed by holding company Granolio d.d.

The segment Other comprises beef cattle farming and rendering the silo services and the storage of trade goods (Granolio d.d.)

Granolio Group's financial indicators for the six months period of 2019

			In thousands of HRK
	1-6 2019	1-6 2018	change
Operating income	218.414	238.104	(19.690)	(8%)
Operating expenses	(228.697)	(241.241)	12.544	5%
EBIT	(10.283)	(3.137)	(7.146)	228%
EBIT margin	-5%	(1%)
EBITDA	3.620	12.216	(8.596)	(70%)
EBITDA margin	2%	5%
Net financial result	(1.482)	(24)	(1.458)	(6075%)
Net result for the period	(11.765)	(3.161)	(8.604)	(272%)
Attributable to the Group	(12.049)	(4.234)	(7.815)	(185%)
Non-controlling interest	284	1.073	(789)	74%

Net financial result represents the difference between financial revenues and financial expenses. In the first half-year 2019, financial expense is greater due to holding company starting to account for an interest on financial debt which is part of the pre-bankruptcy settlement.

Financial indicators In thousands of HRK
	30 6.2019	31.12.2018	change
Net assets (Capital and reserves)*	51.159	104.806	(53.647)	(51%)
Total debt	460.033	516.765	(56.732)	(11%)
Cash and cash equivalents	3.989	10.340	(6.351)	(61%)
Given loans, deposits and similar**	26.574	32.821	(6.247)	(19%)
Net debt	429.470	473.604	(44.134)	(9%)
Net debt/ EBITDA	17,89	14,53
EBITDA for the last 12 months	24.003	32.599

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

** Loans given, securities and deposits

Net assets of the Group is lower compared to the value stated at 31 December 2018 due to deconsolidation of financial statements of Žitar d.o.o. and its subsidiary Žitar konto d.o.o. As at 4 March 2019 the Company has signed a contract on the sales of investments into Žitar, and on 14 March 2019 this business event has been recorded in the Court register.

Total debt of the Group has decreased mainly due to deconsolidation of financial liabilities of Žitar and, in smaller amount, due to repayment of debt by Zdenka – mliječni proizvodi.

Separate business results for the six months period of 2019

Granolio d.d. In thousands of HRK
	1-6 2019	1-6 2018	change
Operating income	130.707	125.933	4.774	4%
EBIT	(11.746)	(6.566)	(5.180)	(79%)
margin %	(9%)	(5%)
EBITDA	(6.454)	(1.373)	(5.081)	370%
margin %	(5%)	(1%)
Net financial result	(394)	290	(684)	236%
Net result	(12.140)	(6.276)	(5.864)	(93%)
margin %	(9,3%)	(5,0%)

In the first half-year 2019 the Company has made lower operating result (EBIT) compared to the same period last year. The reason for that is high prices of wheat that are not followed by equal increase in sales prices of flour. The second reason is that Company does not have enough working capital to increase volume of trading in sowing materials and crops.

Company expects improving it's operating result to improve by the end of the year.

Net financial result represents the difference between financial revenues and financial expenses. In 2019 the Company started to account for an interest on the financial debt which is part of the prebankruptcy settlement.

As at 4 March 2019 The Company has signed a contract on the sales of investments into Žitar, one of its subsidiaries. Since the value of the investment has been impaired to it's net realizable value in financial statements for 2018, no profit nor loss from sale of investment has been recognized in Statement of total comprehensive income.

Zdenka - mliječni proizvodi d.o.o. In thousands of HRK
	1-6 2019	1-6 2018	change
Operating income	72.934	67.692	5.242	8%
EBIT	1.726	2.281	(555)	24%
margin %	2%	3%
EBITDA	8.012	8.400	(388)	(5%)
margin %	11%	12%
Net financial result	(358)	(183)	(175)	(96%)
Net result	1.368	2.098	(730)	35%
margin %	2%	3%

In the first half-year 2019 average prices of raw materials increased by 10% compared to the first halfyear 2018. Sales prices of finished goods could not rise proportionally and that has caused decrease in sales margins in 2019 compared to the previous period.

Zdenačka farma d.o.o. In thousands of HRK

	1-6 2019	1-6 2018	change
Operating income EBIT	12.534 159	11.328 1.080	1.206 (921)	11% (85%)
margin %	1%	10%
EBITDA	1.666	2.509	(843)	(34%)
margin %	13%	22%
Net financial result	(356)	(348)	(8)	(2%)
Net result	(197)	732	(929)	(127%)
margin %	(2%)	6%

In the first half-year 2019 total sales of milk by Zdenačka farma amounted to 2,1 million kilos (HY 2018: 2,4 million kilos). Average sales price realised in the first quarter 2019 was lower than the average sales price realised in the same period last year by 2%. Other than by sale of milk, the income was also made from trade in goods.

Employees

In the six months 2019 the Group employed 382 employees based on man-hour basis (in the six months 2018: 416 employees).

Environment

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

Other

Supervisory Board has approved Granolio Group's financial statements for the six months period 2019.

Annex 1
	ISSUER'S GENERAL DATA
Reporting period:	1.1.2019 30.6.2019 to
Year:	2019
Quarter:	2.
	Quarterly financial statements
Registration number (MB): 01244272	Issuer's home Member Croatia State code:
Entity's registration 080111595 number (MBS):
Personal identification 59064993527 number (OIB):	213800O3Z6ZSDBAKG321 LEI:
Institution 15989 code:
Name of the issuer: Granolio d.d
Postcode and town: 10000	Zagreb
Street and house number: Budmanijeva 5
E-mail address: granolio@granolio.hr
Web address: www.granolio.hr
Number of employees 387 (end of the reporting
Consolidated report: KD	(KN-not consolidated/KD-consolidated) KN	KD
Audited: RN	(RN-not audited/RD-audited) RN	RD
Names of subsidiaries (according to IFRS):	Registered office:	MB:
GRANOLIO D.D.	ZAGREB	1244272
ZDENAČKA FARMA D.O.O.	VELIKI ZDENCI	2095777
ZDENKA - MLIJEČNI PROIZVODI D.O.O.	VELIKI ZDENCI	1623982
ŽITAR D.O.O.	DONJI MIHOLJAC	1443119
ŽITAR KONTO D.O.O.	DONJI MIHOLJAC	4212517
		Yes No
Bookkeeping firm: No	(Yes/No) (name of the bookkeeping firm)
Contact person: JASENKA KORDIĆ
Telephone: 01/6320-261	(only name and surname of the contact person)
E-mail address: jkordic@granolio.hr
Audit firm: BDO Croatia d.o.o.
(name of the audit firm)
Certified auditor: Hrvoje Stipić (name and surname)

BALANCE SHEET balance as at 30.06.2019.

ADP code Last day of the preceding business year At the reporting date of the current period 2 3 4 001 002 449.163.043 370.806.805 003 122.816.990 125.755.101 004 0 0 005 120.452.823 120.515.371 006 0 0 007 0 0 008 0 0 009 2.364.167 5.239.730 010 315.055.569 233.819.511 011 23.643.099 14.295.423 012 214.789.139 158.912.157 013 47.911.643 36.405.513 014 2.230.274 1.085.350 015 9.939.064 6.023.809 016 401.922 0 017 79.651 11.946.961 018 11.013.777 103.298 019 5.047.000 5.047.000 020 10.172.484 10.129.193 021 0 0 022 0 0 023 0 0 024 0 0 025 0 0 026 0 0 027 0 0 028 302.114 269.323 029 0 0 030 9.870.370 9.859.870 031 15.000 0 032 0 0 033 0 0 034 0 0 035 15.000 0 036 1.103.000 1.103.000 037 244.282.874 211.098.905 038 68.515.150 36.380.574 039 21.261.304 16.046.392 040 6.808.217 4.283.113 041 33.875.722 11.110.713 042 6.531.262 4.940.356 043 38.645 0 044 0 0 045 0 0 046 132.908.459 144.425.417 047 664.746 664.741 048 0 0 049 95.436.009 102.503.962 050 467 2.301 051 5.687.313 2.495.465 052 31.119.924 38.758.948 053 32.519.590 26.304.319 054 0 0 055 0 0 056 10.190.819 10.190.819 057 0 0 058 0 0 059 0 0 060 178.441 178.281 061 22.150.330 15.935.219 062 0 0 063 10.339.675 3.988.595 064 666.551 608.838 065 694.112.468 582.514.548 II RECEIVABLES (ADP 047 to 052) 1 Receivables from undertakings within the group 2 Receivables from companies linked by virtue of participating interests 3 Customer receivables 7 Investments in securities 8 Loans, deposits, etc. given 9 Other financial assets III CURRENT FINANCIAL ASSETS (ADP 054 to 062) 1 Investments in holdings (shares) of undertakings within the group 2 Investments in other securities of undertakings within the group 3 Loans, deposits, etc. to undertakings within the group 4 Receivables from employees and members of the undertaking 5 Receivables from government and other institutions 6 Other receivables 1 Research and development C) CURRENT ASSETS (ADP 038+046+053+063) I INVENTORIES (ADP 039 to 045) 1 Raw materials and consumables 6 Fixed assets held for sale 7 Biological assets 7 Investments in securities 8 Loans, deposits, etc. given 9 Other investments accounted for using the equity method 10 Other fixed financial assets 5 Advances for inventories 2 Work in progress IV RECEIVABLES (ADP 032 to 035) 1 Receivables from undertakings within the group 1 Investments in holdings (shares) of undertakings within the group 2 Investments in other securities of undertakings within the group 3 Loans, deposits, etc. to undertakings within the group 4. Investments in holdings (shares) of companies linked by virtue of participating interests 1 Land 2 Buildings 3 Plant and equipment 4 Tools, working inventory and transportation assets 2 Receivables from companies linked by virtue of participating interests 3 Customer receivables in HRK 8 Other tangible assets 9 Investment property III FIXED FINANCIAL ASSETS (ADP 021 to 030) 5 Investment in other securities of companies linked by virtue of participating interests 6 Loans, deposits etc. to companies linked by virtue of participating interests 2 Concessions, patents, licences, trademarks, software and other rights 3 Goodwill 4 Advances for the purchase of intangible assets 5 Intangible assets in preparation 5 Biological assets 6 Advances for the purchase of tangible assets 7 Tangible assets in preparation Submitter: Granolio d.d. 6 Other intangible assets II TANGIBLE ASSETS (ADP 011 to 019) 1 Item A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID B) FIXED ASSETS (ADP 003+010+020+031+036) I INTANGIBLE ASSETS (ADP 004 to 009) 4 Other receivables V DEFERRED TAX ASSETS 3 Finished goods 4 Merchandise 4 Investments in holdings (shares) of companies linked by virtue of participating interests 5 Investment in other securities of companies linked by virtue of participating interests 6 Loans, deposits etc. to companies linked by virtue of participating interests IV CASH AT BANK AND IN HAND D ) PREPAID EXPENSES AND ACCRUED INCOME E) TOTAL ASSETS (ADP 001+002+037+064)

066

OFF-BALANCE SHEET ITEMS

LIABILITIES
A) CAPITAL AND RESERVES (ADP 068 to	067	104.806.286	51.158.752
I INITIAL (SUBSCRIBED) CAPITAL	068	19.016.430	19.016.430
II CAPITAL RESERVES	069	84.195.807	84.195.807
III RESERVES FROM PROFIT (ADP 071+072-073+074+075)	070	1.208.227	4.296.923
1 Legal reserves	071	408.227	3.496.923
2 Reserves for treasury shares	072	800.000	800.000
3 Treasury shares and holdings (deductible item)	073	0	0
4 Statutory reserves	074	0	0
5 Other reserves	075	0	0
IV REVALUATION RESERVES	076	57.678.142	56.177.018
V FAIR VALUE RESERVES (ADP 078 to 080)	077	0	0
1 Fair value of financial assets available for sale	078
2 Cash flow hedge - effective portion	079
3 Hedge of a net investment in a foreign operation - effective portion	080
VI RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 082-
083)	081	-199.590.747	-128.887.669
1 Retained profit	082	0	0
2 Loss brought forward	083	199.590.747	128.887.669
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 085-086)	084	81.861.224	-12.048.604
1 Profit for the business year	085	81.861.224	0
2 Loss for the business year	086	0	12.048.604
VIII MINORITY (NON-CONTROLLING) INTEREST	087	60.437.203	28.408.847
B) PROVISIONS (ADP 089 to 094)	088	0	0
1 Provisions for pensions, termination benefits and similar obligations	089
2 Provisions for tax liabilities	090
3 Provisions for ongoing legal cases	091
4 Provisions for renewal of natural resources	092
5 Provisions for warranty obligations	093
6 Other provisions	094
C) LONG-TERM LIABILITIES (ADP 096 to 106)	095	482.627.602	438.125.383
1 Liabilities to undertakings within the group	096	0	0
2 Liabilities for loans, deposits, etc. of undertakings within the group	097	0	0
3 Liabilities to companies linked by virtue of participating interests	098	0	0
4 Liabilities for loans, deposits etc. of companies linked by virtue of
participating interests	099	0	0
5 Liabilities for loans, deposits etc.	100	11.126	0
6 Liabilities to banks and other financial institutions	101	418.048.934	381.573.812
7 Liabilities for advance payments	102	0	0
8 Liabilities to suppliers	103	51.906.486	44.220.030
9 Liabilities for securities	104	0	0
10 Other long-term liabilities	105	0	0
11 Deferred tax liability	106	12.661.056	12.331.541
D) SHORT-TERM LIABILITIES (ADP 108 to 121)	107	95.537.341	87.898.020
1 Liabilities to undertakings within the group	108	0	0
2 Liabilities for loans, deposits, etc. of undertakings within the group	109	0	0
3 Liabilities to companies linked by virtue of participating interests	110	0	0
4 Liabilities for loans, deposits etc. of companies linked by virtue of
participating interests	111	0	0
5 Liabilities for loans, deposits etc.	112	0	3.000.000
6 Liabilities to banks and other financial institutions	113	30.535.530	8.781.933
7 Liabilities for advance payments	114	668.221	52.728
8 Liabilities to suppliers	115	48.362.280	62.597.458
9 Liabilities for securities	116	8.870.000	7.830.000
10 Liabilities to employees	117	2.255.225	2.342.114
			3.104.025
11 Taxes, contributions and similar liabilities	118	3.908.720
12 Liabilities arising from the share in the result	119	0	0
13 Liabilities arising from fixed assets held for sale	120	0	0
14 Other short-term liabilities	121	937.365	189.762
E) ACCRUALS AND DEFERRED INCOME	122	11.141.240	5.332.393
F) TOTAL – LIABILITIES (ADP 067+088+095+107+122)	123	694.112.469	582.514.548
G) OFF-BALANCE SHEET ITEMS	124

for the period 01.01.2019 to 30.06.2019 STATEMENT OF PROFIT OR LOSS

Item	ADP	Same period of the previous year		Current period
	code	Cumulative	Quarter	Cumulative	Quarter
1	2	3	4	5	6
I OPERATING INCOME (ADP 126 to 130)	125	238.103.938	135.075.936	218.414.257	119.919.487
1 Income from sales with undertakings within the group	126	0	0	0	0
2 Income from sales (outside group)	127	229.827.599	131.042.643	209.849.732	114.946.682
3 Income from the use of own products, goods and services	128	1.015.268	647.747	872.473	184.428
4 Other operating income with undertakings within the group	129	0	0	0	0
5 Other operating income (outside the group)	130	7.261.071	3.385.546	7.692.052	4.788.377
II OPERATING EXPENSES (ADP 132+133+137+141+142+143+146+153)	131	241.240.878	134.856.971	228.697.297	123.036.631
1 Changes in inventories of work in progress and finished goods	132	-6.730.675	-3.845.499	-3.010.269	2.858.291
2 Material costs (ADP 134 to 136)	133	206.084.472	117.013.024	193.578.292	102.049.582
a) Costs of raw materials and consumables	134	144.172.275	73.238.798	148.974.956	76.890.325
b) Costs of goods sold	135	44.387.018	34.113.418	30.771.891	18.057.029
c) Other external costs	136	17.525.179	9.660.808	13.831.445	7.102.228
3 Staff costs (ADP 138 to 140)	137	18.585.933	9.471.184	18.385.714	8.878.679
a) Net salaries and wages	138	11.962.012	6.115.030	11.897.680	5.750.700
b) Tax and contributions from salary costs	139	3.998.459	2.024.307	4.049.643	1.957.365
c) Contributions on salaries	140	2.625.462	1.331.847	2.438.391	1.170.614
4 Depreciation	141	15.352.641	7.613.351	13.885.597	6.543.986
5 Other costs	142	3.473.745	1.845.698	3.198.134	1.670.237
6 Value adjustments (ADP 144+145)	143	0	0	17.767	0
a) fixed assets other than financial assets	144	0	0	0	0
b) current assets other than financial assets	145	0	0	17.767	0
7 Provisions (ADP 147 to 152)	146	0	0	0	0
a) Provisions for pensions, termination benefits and similar obligations	147
b) Provisions for tax liabilities	148
c) Provisions for ongoing legal cases	149
d) Provisions for renewal of natural resources	150
e) Provisions for warranty obligations	151
f) Other provisions	152
8 Other operating expenses	153	4.474.762	2.759.213	2.642.062	1.035.856
III FINANCIAL INCOME (ADP 155 to 164)	154	2.175.677	922.386	990.219	963.198
1 Income from investments in holdings (shares) of undertakings within the group	155	0	0	0	0
2 Income from investments in holdings (shares) of companies linked by virtue of participating interests	156	0	0	0	0
3 Income from other long-term financial investment and loans granted to undertakings within the group	157	0	0	0	0
4 Other interest income from operations with undertakings within the group	158	0	0	0	0

undertakings within the group	157	0	0	0	0
4 Other interest income from operations with undertakings within the group	158	0	0	0	0
5 Exchange rate differences and other financial income from operations with undertakings within the group	159	0	0	0	0
6 Income from other long-term financial investments and loans	160	352.276	176.250	67.641	67.641
7 Other interest income	161	19.919	7.518	588.377	585.519
8 Exchange rate differences and other financial income	162	1.803.482	738.618	146.384	122.221
9 Unrealised gains (income) from financial assets	163	0	0	0	0
10 Other financial income	164	0	0	187.817	187.817
IV FINANCIAL EXPENSES (ADP 166 to 172)	165	2.199.704	1.105.664	2.472.296	1.128.076
1 Interest expenses and similar expenses with undertakings within the group	166	0	0	0	0
2 Exchange rate differences and other expenses from operations with undertakings within the group	167	0	0	0	0
3 Interest expenses and similar expenses	168	1.872.262	899.509	2.247.701	998.394
4 Exchange rate differences and other expenses	169	305.831	184.639	199.340	104.554
5 Unrealised losses (expenses) from financial assets	170	0	0	0	0
6 Value adjustments of financial assets (net)	171	0	0	0	0
7 Other financial expenses	172	21.611	21.516	25.255	25.128
V SHARE IN PROFIT FROM UNDERTAKINGS LINKED BY VRITUE OF PARTICIPATING INTERESTS	173	0	0	0	0
VI SHARE IN PROFIT FROM JOINT VENTURES	174	0	0	0	0
VII SHARE IN LOSS OF COMPANIES LINKED BY VIRTUE OF PARTICIPATING INTEREST	175	0	0	0	0
VIII SHARE IN LOSS OF JOINT VENTURES	176	0	0	0	0
IX TOTAL INCOME (ADP 125+154+173 + 174)	177	240.279.615	135.998.322	219.404.476	120.882.685
X TOTAL EXPENDITURE (ADP 131+165+175 + 176)	178	243.440.582	135.962.635	231.169.593	124.164.707
XI PRE-TAX PROFIT OR LOSS (ADP 177-178)	179	-3.160.967	35.687	-11.765.117	-3.282.022
1 Pre-tax profit (ADP 177-178)	180	0	35.687	0	0

2 Pre-tax loss (ADP 178-177)	181	-3.160.967	0	-11.765.117	-3.282.022
XII INCOME TAX	182	0	0	0	0
XIII PROFIT OR LOSS FOR THE PERIOD (ADP 179-182)	183	-3.160.967	35.687	-11.765.117	-3.282.022
1 Profit for the period (ADP 179-182)	184	0	35.687	0	0
2 Loss for the period (ADP 182-179)	185	-3.160.967	0	-11.765.117	-3.282.022
DISCONTINUED OPERATIONS (to be filled in by undertakings subject to IFRS only with discontinued operations)
XIV PRE-TAX PROFIT OR LOSS OF DISCONTINUED OPERATIONS	186	0	0	0	0
(ADP 187-188)
1 Pre-tax profit from discontinued operations	187
2 Pre-tax loss on discontinued operations	188
XV INCOME TAX OF DISCONTINUED OPERATIONS	189
1 Discontinued operations profit for the period (ADP 186-189)	190
2 Discontinued operations loss for the period (ADP 189-186)	191
TOTAL OPERATIONS (to be filled in only by undertakings subject to IFRS with discontinued operations)
XVI PRE-TAX PROFIT OR LOSS (ADP 179+186) 1 Pre-tax profit (ADP 192)	192
2 Pre-tax loss (ADP 192)	193
XVII INCOME TAX (ADP 182+189)	194 195
XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 192-195)	196
1 Profit for the period (ADP 192-195)	197
2 Loss for the period (ADP 195-192)	198
APPENDIX to the P&L (to be filled in by undertakings that draw up consolidated annual financial statements)
XIX PROFIT OR LOSS FOR THE PERIOD (ADP 200+201)	199	-3.193.967	35.687	-11.765.117	-3.282.022
1 Attributable to owners of the parent	200	-4.266.874	-1.470.940	-12.048.604	-3.370.652
2 Attributable to minority (non-controlling) interest	201	1.072.907	1.506.627	283.487	88.630
STATEMENT OF OTHER COMPRHENSIVE INCOME (to be filled in by undertakings subject to IFRS)
I PROFIT OR LOSS FOR THE PERIOD	202	-3.160.967	35.687	-11.765.117	-3.282.022
II OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX			0	0	0
(ADP 204 to 211)	203	0
1 Exchange rate differences from translation of foreign operations	204
2 Changes in revaluation reserves of fixed tangible and intangible assets	205
3 Profit or loss arising from subsequent measurement of financial assets available for sale	206
4 Profit or loss arising from effective cash flow hedging	207
5 Profit or loss arising from effective hedge of a net investment in a foreign operation	208
6 Share in other comprehensive income/loss of companies linked by virtue of participating interests	209
7 Actuarial gains/losses on the defined benefit obligation	210
8 Other changes in equity unrelated to owners	211
III TAX ON OTHER COMPREHENSIVE INCOME FOR THE PERIOD	212
IV NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 203-212)	213	0	0	0	0
V COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 202+213)	214	-3.160.967	35.687	-11.765.117	-3.282.022
APPENDIX to the Statement on comprehensive income (to be filled in by undertakings that draw up consolidated statements)
VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 216+217)	215	-3.193.967	35.687	-11.765.117	-3.282.022
1 Attributable to owners of the parent	216	-4.266.874	-1.470.940	-12.048.604	-3.370.652
2 Attributable to minority (non-controlling) interest	217	1.072.907	1.506.627	283.487	88.630

STATEMENT OF CASH FLOWS - indirect method for the period 01.01.2019. . to 30.06.2019.

Submitter: Granolio d.d.
Item	ADP code	Same period of the previous year	Current period
1	2	3	4
Cash flow from operating activities
1 Pre-tax profit	001	-3.160.967	-11.765.117
2 Adjustments (ADP 003 to 010): a) Depreciation	002 003	13.338.367 15.352.643	14.036.728 13.885.597
b) Gains and losses from sale and value adjustment of fixed tangible and
intangible assets	004	1.990.817	1.138.081
c) Gains and losses from sale and unrealised gains and losses and value	005	0	-172.817
adjustment of financial assets d) Interest and dividend income	006	-372.081	-583.615
e) Interest expenses	007	1.733.324	2.247.699
f) Provisions	008	0	0
g) Exchange rate differences (unrealised)	009	-1.521.732	-6.642
h) Other adjustments for non-cash transactions and unrealised gains and	010	-3.844.604	-2.471.575
losses
I Cash flow increase or decrease before changes in working capital (ADP 001+002)	011	10.177.400	2.271.611
3 Changes in the working capital (ADP 013 to 016)	012	-12.564.304	9.478.457
a) Increase or decrease in short-term liabilities	013	-1.731.141	10.322.212
b) Increase or decrease in short-term receivables	014	2.388.245	192.859
c) Increase or decrease in inventories	015	-13.221.408	-1.036.614
d) Other increase or decrease in working capital II Cash from operations (ADP 011+012)	016	0	0
4 Interest paid	017 018	-2.386.904 -1.784.381	11.750.068 -2.112.617
5 Income tax paid	019	-490.000	0
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019)			9.637.451
	020	-4.661.285
Cash flow from investment activities
1 Cash receipts from sales of fixed tangible and intangible assets	021	0	0
2 Cash receipts from sales of financial instruments	022	0	0
3 Interest received	023	43.482	589.487
4 Dividends received	024	0	0
5 Cash receipts from repayment of loans and deposits	025	54.811	3.085.171
6 Other cash receipts from investment activities	026	10.215	0
III Total cash receipts from investment activities (ADP 021 to 026)	027	108.508	3.674.658
1 Cash payments for the purchase of fixed tangible and intangible assets	028	-4.350.185	-5.893.563
2 Cash payments for the acquisition of financial instruments	029	0	0
3 Cash payments for loans and deposits for the period	030	-9.840.004	-145.000
4 Acquisition of a subsidiary, net of cash acquired	031	0	0
5 Other cash payments from investment activities	032	0	0
IV Total cash payments from investment activities (ADP 028 to 032)	033	-14.190.189	-6.038.563
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033)	034	-14.081.681	-2.363.905
Cash flow from financing activities
1 Cash receipts from the increase in initial (subscribed) capital	035	0	0
2 Cash receipts from the issue of equity financial instruments and debt financial instruments	036	0	0
3 Cash receipts from credit principals, loans and other borrowings	037	35.551.515	6.000.000
4 Other cash receipts from financing activities	038	0	0
V Total cash receipts from financing activities (ADP 035 to 038)	039	35.551.515	6.000.000
1 Cash payments for the repayment of credit principals, loans and other borrowings and debt financial instruments	040	-7.769.741	-17.921.505
2 Cash payments for dividends	041	0	0
3 Cash payments for finance lease	042	-862.413	-663.121
4 Cash payments for the redemption of treasury shares and decrease in			0
initial (subscribed) capital	043	0
5 Other cash payments from financing activities	044	-910.000	-1.040.000
VI Total cash payments from financing activities (ADP 040 to 044)	045	-9.542.154	-19.624.626
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045)	046	26.009.361	-13.624.626
1 Unrealised exchange rate differences in respect of cash and cash equivalents	047	0	0
D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP 020+034+046+047)	048	7.266.395	-6.351.080
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	049	3.604.962	10.339.675
F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD(ADP 048+049)	050	10.871.357	3.988.595

in HRK

STATEMENT OF CHANGES IN EQUITY

for the period from 1.1.2018	to 30.6.2019															in HRK
Item	ADP code	Initial (subscribed) capital	Capital reserves	Legal reserves	Reserves for treasury shares	Treasury shares and holdings (deductible item)		Statutory reserves Other reserves	Attributable to owners of the parent Revaluation reserves	Fair value of financial assets available for sale	Cash flow hedge - effective portion	Hedge of a net investment in a foreign operation -	Retained profit / loss brought forward	Profit/loss for the business year	Total attributable to owners of the parent	Minority (non controlling) interest	Total capital and reserves
1	2	3	4	5	6	7	8	9	10	11	12	effective portion 13	14	15	16 (3 to 6 - 7 + 8 to 15)	17	18 (16+17)
Previous period			84.186.547	408.227	800.000	0		0 0	60.117.173	0	0	0	-868.308	-201.658.850
1 Balance on the first day of the previous business year 2 Changes in accounting policies	01 02	19.016.430 0	0	0	0	0		0 0	0	0	0	0		0 0	-37.998.781 0	58.358.525	20.359.744 0
3 Correction of errors	03	0	0	0	0	0		0 0	0	0	0	0		0 0	0		0
4 Balance on the first day of the previous business year (restated) (ADP 01 to 03)	04	19.016.430	84.186.547	408.227	800.000	0		0 0	60.117.173	0	0	0	-868.308	-201.658.850	-37.998.781	58.358.525	20.359.744
5 Profit/loss of the period 6 Exchange rate differences from translation of foreign operations	05 06	0 0	0 0	0 0	0 0	0 0		0 0 0	0 0	0 0	0 0	0 0		0 81.861.224 0 0	81.861.224 0		81.861.224 0
7 Changes in revaluation reserves of fixed tangible and intangible assets	07	0	0	0	0	0		0 0	-2.996.109	0	0	0	2.996.109		0		0
8 Profit or loss arising from subsequent measurement of financial assets available for sale	08	0	0	0	0	0		0 0	0		0	0			0		0
9 Profit or loss arising from effective cash flow hedge	09	0	0	0	0	0		0 0	0	0		0			0		0
10 Profit or loss arising from effective hedge of a net investment in a foreign operation	10	0	0	0	0	0		0 0	0	0	0				0		0
11 Share in other comprehensive income/loss of companies linked by virtue of participating interests	11	0	0	0	0	0		0 0	0	0	0	0		0	0		0
12 Actuarial gains/losses on the defined benefit obligation	12	0	0	0	0	0		0 0	0	0	0	0		0	0		0
13 Other changes in equity unrelated to owners	13		9.260					0	679.363	0	0	0	-717.381		-28.758		-28.758
14 Tax on transactions recognised directly in equity	14	0	0	0	0	0		0 0	-122.285	0	0	0	657.682		535.397		535.397
15 Increase/decrease in initial (subscribed) capital (other than from reinvesting profit and other than arising from the pre-bankruptcy settlement procedure)	15							0	0	0	0	0		0	0		0
16 Increase in initial (subscribed) capital arising from the reinvestment of profit	16							0	0	0	0	0		0	0		0
17 Increase in initial (subscribed) capital arising from the pre-bankruptcy settlement procedure	17							0	0	0	0	0		0	0		0
18 Redemption of treasury shares/holdings	18							0	0	0	0	0		0	0		0
19 Payment of share in profit/dividend 20 Other distribution to owners	19 20							0 0	0 0	0 0	0 0	0 0		0 0	0 0		0 0
21 Transfer to reserves according to the annual schedule	21							0	0	0	0	0	-201.658.850	201.658.850	0	2.078.678	2.078.678
22 Increase in reserves arising from the pre-bankruptcy settlement procedure	22							0	0	0	0	0		0	0		0
23 Balance on the last day of the previous business year reporting period (04 to 22)	23	19.016.430	84.195.807	408.227	800.000	0		0 0	57.678.142	0	0	0	-199.590.748	81.861.224	44.369.082	60.437.203	104.806.285
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the IFRS) I OTHER COMPREHENSIVE INCOME OF THE PREVIOUS PERIOD, NET OF
TAX (ADP 06 to 14)	24	0	9.260	0	0	0		0 0	-2.439.031	0	0	0	2.936.410	0	506.639	0	506.639
II COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD (ADP 05+24)	25	0	9.260	0	0	0		0 0	-2.439.031	0	0	0	2.936.410	81.861.224	82.367.863	0	82.367.863
III TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD RECOGNISED DIRECTLY IN EQUITY (ADP 15 to 22)	26	0	0	0	0	0		0 0	0	0	0	0	-201.658.850	201.658.850	0	2.078.678	2.078.678
Current period 1 Balance on the first day of the current business year	27	19.016.430	84.195.807	408.227	800.000	0		0 0	57.678.142	0	0	0	-199.590.748	81.861.224	44.369.082	60.437.203	104.806.285
2 Changes in accounting policies	28	0	0	0	0	0		0 0	0	0	0	0		0 0	0		0
3 Correction of errors	29	0	0	327	0	0		0 0	0	0	0	0		0 0	327		327
4 Balance on the first day of the current business year (restated) (ADP 27 to 29)	30	19.016.430	84.195.807	408.554	800.000	0		0 0	57.678.142	0	0	0	-199.590.748	81.861.224	44.369.409	60.437.203	104.806.612
5 Profit/loss of the period	31	0	0	0	0	0		0 0	0	0	0	0		0 -12.048.604	-12.048.604		-12.048.604
6 Exchange rate differences from translation of foreign operations	32	0	0	0	0	0		0	0	0	0	0		0 0	0		0
7 Changes in revaluation reserves of fixed tangible and intangible assets	33	0	0	0	0	0		0 0	-1.501.123	0	0	0	1.501.123		0		0
8 Profit or loss arising from subsequent measurement of financial assets available for	34	0	0	0	0	0		0 0	0		0	0			0		0
sale 9 Profit or loss arising from effective cash flow hedge	35	0	0	0	0	0		0 0	0	0		0			0		0
10 Profit or loss arising from effective hedge of a net investment in a foreign operation	36	0	0	0	0	0		0 0	0	0	0				0		0
11 Share in other comprehensive income/loss of companies linked by virtue of			0	0	0	0		0									0
participating interests 12 Actuarial gains/losses on the defined benefit obligation	37 38	0 0	0	0	0	0		0							0 0		0
13 Other changes in equity unrelated to owners	39												-9.900.415	0	-9.900.415	-32.311.843	-42.212.258
14 Tax on transactions recognised directly in equity	40	0	0	0	0	0		0					329.515	0	329.515		329.515
15 Increase/decrease in initial (subscribed) capital (other than from reinvesting profit and other than arising from the pre-bankruptcy settlement procedure)	41												0	0	0		0
16 Increase in initial (subscribed) capital arising from the reinvestment of profit	42												0	0	0		0
17 Increase in initial (subscribed) capital arising from the pre-bankruptcy settlement procedure	43												0	0	0		0
18 Redemption of treasury shares/holdings	44												0	0	0		0
19 Payment of share in profit/dividend 20 Other distribution to owners	45 46												0 0	0 0	0 0		0 0
21 Transfer to reserves according to the annual schedule	47			3.088.369									78.772.855	-81.861.224	0	283.487	283.487
22 Increase in reserves arising from the pre-bankruptcy settlement procedure	48												0	0	0		0
23 Balance on the last day of the current business year reporting period (ADP 30 to 48)	49	19.016.430	84.195.807	3.496.923	800.000	0		0 0	56.177.019	0	0	0	-128.887.670	-12.048.604	22.749.905	28.408.847	51.158.752
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the IFRS) I OTHER COMPREHENSIVE INCOME FOR THE CURRENT PERIOD, NET OF
TAX	50	0	0	0	0	0		0 0	-1.501.123	0	0	0	-8.069.777	0	-9.570.900	-32.311.843	-41.882.743
(ADP 32 to 40) II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP
31+50) III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED	51	0	0	0	0	0		0 0	-1.501.123	0	0	0	-8.069.777	-12.048.604	-21.619.504	-32.311.843	-53.931.347
DIRECTLY IN EQUITY (ADP 41 to 48)	52	0	0	3.088.369	0	0		0 0	0	0	0	0	78.772.855	-81.861.224	0	283.487	283.487

NOTES TO FINANCIAL STATEMENTS - TFI (drawn up for quarterly reporting periods)

Name of the issuer: Granolio d.d. Personal identification number (OIB): 59064993527

Reporting period:01.01.2019. -30.06.2019.

Notes to financial statements for quarterly periods include:

The same accounting policies are applied while drawing up financial statements for the six month reporting period as in the latest annual financial statements except for IFRS 16 that applies to the financial statements starting on 1 January 2019. The

effect of applying IFRS 16 on lease contracts concluded prior to January 1, 2019 is reported in the position Loss brought forward.

As at March 4, 2019 the Group carried out the deconsolidation of Žitar d.o.o. and its subsidiary Žitar konto d.o.o.

Deconsolidation caused decrease in value of assets and liabilities as at June 30, 2019 compared to December 31, 2018.

The result of deconsolidation is shown in the value of Capital and reserves and the value of Noncontrolling Interest.