Granolio d.d.

Quarterly Report • Oct 30, 2019

Consolidated financial results for the nine months period ended 30 September 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 nine months period of 2019

	In thousands of HRK
	1-9 2019	1-9 2018	change
Operating income	348.337	381.413	(33.076)	(9%)
Operating expenses	(356.312)	(384.647)	28.335	7%
EBIT	(7.975)	(3.234)	(4.741)	147%
EBIT margin	-2%	(1%)
EBITDA	12.510	19.724	(7.214)	(37%)
EBITDA margin	4%	5%
Net financial result	(6.175)	(1.199)	(4.976)	(415%)
Net result for the period	(14.150)	(4.433)	(9.717)	(219%)
Attributable to the Group	(15.363)	(6.789)	(8.574)	(126%)
Non-controlling interest	1.213	2.356	(1.143)	49%

Net financial result represents the difference between financial revenues and financial expenses. In the nine months 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 9.2019	31.12.2018	change
Net assets (Capital and reserves) *	48.937	104.806	(55.869)	(53%)
Total debt	395.830	457.466	(61.636)	(13%)
Cash and cash equivalents	1.840	10.340	(8.500)	(82%)
Given loans, deposits and similar**	51.215	32.821	18.394	56%
Net debt	342.775	414.305	(71.530)	(17%)
Net debt/ EBITDA	13,50	12,71
EBITDA for the last 12 months	25.385	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 are 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 and repayment of debt by Granolio d.d.

Separate business results for the nine months period of 2019

Granolio d.d.				In thousands of HRK
	1-9 2019	1-9 2018	change
Operating income	209.510	194.771	14.739	8%
EBIT	(11.080)	(10.415)	(665)	(6%)
margin %	(5%)	(5%)
EBITDA	(3.124)	(2.612)	(512)	20%
margin %	(1%)	(1%)
Net financial result	(4.769)	319	(5.088)	1595%
Net result	(15.849)	(10.096)	(5.753)	(57%)
margin %	(7,6%)	(5,2%)

In the nine months 2019. the Company has made lower operating result (EBIT) compared to the same period last year. The reason for that are higher 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.

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 its 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
	1-9 2019	1-9 2018	change
Operating income	119.693	110.866	8.827	8%
EBIT	3.801	5.225	(1.424)	27%
margin %	3%	5%
EBITDA	13.261	14.434	(1.173)	(8%)
margin %	11%	13%
Net financial result	(573)	(577)	4	1%
Net result	3.228	4.648	(1.420)	31%
margin %	3%	4%

In the nine months 2019 average prices of raw materials increased compared to the same period last year. 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
	1-9 2019	1-9 2018	change
Operating income	17.913	17.415	498	3%
EBIT	(274)	1.231	(1.505)	(122%)
margin %	(2%)	7%
EBITDA	1.999	3.362	(1.363)	(41%)
margin %	11%	19%
Net financial result	(459)	(516)	57	11%
Net result	(733)	715	(1.448)	(203%)
margin %	(4%)	4%

In the nine months 2019 total sales of milk by Zdenačka farma amounted to 3,2 million kilos (1-9 2018: 3,5 million kilos). Average sales price realized in the nine months 2019 was lower than the average sales price realized 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 nine months 2019 the Group employed 381 employees based on man-hour basis (in the nine months 2018: 423 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 nine months period 2019.

Annex 1
		ISSUER'S GENERAL DATA
Reporting period:		1.1.2019	to	30.9.2019
Year:		2019
Quarter:		3.
		Quarterly financial statements
Registration number (MB):	01244272		Issuer's home Member State code:	Croatia
Entity's registration number (MBS):	080111595
Personal identification number (OIB):	59064993527		LEI:	213800O3Z6ZSDBAKG321
Institution code:	15989
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 (end of the reporting	385
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
Bookkeeping firm:	No	(Yes/No)		(name of the bookkeeping firm)	No
	Contact person: JASENKA KORDIĆ
	(only name and surname of the contact person) Telephone: 01/6320-261
	E-mail address: jkordic@granolio.hr
	Audit firm: BDO Croatia d.o.o.
Certified auditor: Hrvoje Stipić	(name of the audit firm)
	(name and surname)

BALANCE SHEET balance as at 30.09.2019.

in HRK Submitter: Granolio d.d.
Item		Last day of the preceding business	At the reporting date of the current period
1	2	year 3	4
A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID B) FIXED ASSETS (ADP 003+010+020+031+036)	001 002	449.163.043	358.554.944
I INTANGIBLE ASSETS (ADP 004 to 009)	003	122.816.990	125.281.358
1 Research and development	004	0	0
2 Concessions, patents, licences, trademarks, software and other rights	005	120.452.823	124.166.691
3 Goodwill	006	0	0
4 Advances for the purchase of intangible assets	007	0	0
5 Intangible assets in preparation	008	0	0
6 Other intangible assets II TANGIBLE ASSETS (ADP 011 to 019)	009 010	2.364.167 315.055.569	1.114.667 230.870.926
1 Land	011	23.643.099	14.295.423
2 Buildings	012	214.789.139	157.264.219
3 Plant and equipment	013	47.911.643	35.005.949
4 Tools, working inventory and transportation assets	014	2.230.274	1.132.858
5 Biological assets	015	9.939.064	6.059.061
6 Advances for the purchase of tangible assets	016	401.922	82.384 11.885.736
7 Tangible assets in preparation 8 Other tangible assets	017 018	11.013.777 79.651	98.296
9 Investment property	019	5.047.000	5.047.000
III FIXED FINANCIAL ASSETS (ADP 021 to 030)	020	10.172.484	1.299.660
1 Investments in holdings (shares) of undertakings within the group	021	0	0
2 Investments in other securities of undertakings within the group	022	0	0
3 Loans, deposits, etc. to undertakings within the group	023	0	0
4. Investments in holdings (shares) of companies linked by virtue of participating interests	024	0	0
5 Investment in other securities of companies linked by virtue of participating interests	025	0	0
6 Loans, deposits etc. to companies linked by virtue of participating interests	026	0	0
7 Investments in securities	027	0	0 269.323
8 Loans, deposits, etc. given 9 Other investments accounted for using the equity method	028 029	302.114 0	0
10 Other fixed financial assets	030	9.870.370	1.030.337
IV RECEIVABLES (ADP 032 to 035)	031	15.000	0
1 Receivables from undertakings within the group	032	0	0
2 Receivables from companies linked by virtue of participating interests	033	0	0
3 Customer receivables	034	0	0
4 Other receivables	035	15.000	0
V DEFERRED TAX ASSETS C) CURRENT ASSETS (ADP 038+046+053+063)	036 037	1.103.000 244.282.874	1.103.000 242.097.238
I INVENTORIES (ADP 039 to 045)	038	68.515.150	45.000.375
1 Raw materials and consumables	039	21.261.304	19.277.223
2 Work in progress	040	6.808.217	1.993.331
3 Finished goods	041	33.875.722	10.037.909
4 Merchandise	042	6.531.262	13.691.912
5 Advances for inventories	043	38.645	0
6 Fixed assets held for sale 7 Biological assets	044 045	0 0	0 0
II RECEIVABLES (ADP 047 to 052)	046	132.908.459	144.311.339
1 Receivables from undertakings within the group	047	664.746	664.741
2 Receivables from companies linked by virtue of participating interests	048	0	0
3 Customer receivables	049	95.436.009	102.093.022
4 Receivables from employees and members of the undertaking	050	467	861
5 Receivables from government and other institutions	051	5.687.313	2.332.197
6 Other receivables	052	31.119.924	39.220.518
III CURRENT FINANCIAL ASSETS (ADP 054 to 062)	053	32.519.590	50.945.144 0
1 Investments in holdings (shares) of undertakings within the group	054	0
2 Investments in other securities of undertakings within the group	055	0	0
3 Loans, deposits, etc. to undertakings within the group	056	10.190.819	10.190.819
4 Investments in holdings (shares) of companies linked by virtue of participating interests	057	0	0
5 Investment in other securities of companies linked by virtue of participating interests 6 Loans, deposits etc. to companies linked by virtue of participating	058	0	0
interests 7 Investments in securities	059 060	0 178.441	0 149.624
8 Loans, deposits, etc. given	061	22.150.330	40.604.701
9 Other financial assets	062	0	0
IV CASH AT BANK AND IN HAND	063	10.339.675	1.840.380
D ) PREPAID EXPENSES AND ACCRUED INCOME	064	666.551	643.576
E) TOTAL ASSETS (ADP 001+002+037+064) OFF-BALANCE SHEET ITEMS	065 066	694.112.468	601.295.758

LIABILITIES
A) CAPITAL AND RESERVES (ADP 068 to	067	104.806.286	48.937.469
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	55.426.457
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-	081	-199.590.747	-127.973.361
083)
1 Retained profit	082	0	0 127.973.361
2 Loss brought forward	083	199.590.747	-15.363.460
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 085-086)	084	81.861.224	0
1 Profit for the business year	085	81.861.224	15.363.460
2 Loss for the business year	086	0	29.338.673
VIII MINORITY (NON-CONTROLLING) INTEREST B) PROVISIONS (ADP 089 to 094)	087	60.437.203	0
	088	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	425.517.768
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	099	0	0
participating interests 5 Liabilities for loans, deposits etc.	100	11.126	0
6 Liabilities to banks and other financial institutions	101	418.048.934	371.156.250
7 Liabilities for advance payments	102	0	0
8 Liabilities to suppliers	103	51.906.486	42.193.724
9 Liabilities for securities	104	0	0
10 Other long-term liabilities	105	0	0
11 Deferred tax liability	106	12.661.056	12.167.794
D) SHORT-TERM LIABILITIES (ADP 108 to 121)	107	95.537.341	122.002.299
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	3.159.863
6 Liabilities to banks and other financial institutions	113	30.535.530	12.062.298
7 Liabilities for advance payments	114	668.221	8.075.589
8 Liabilities to suppliers	115	48.362.280	79.902.766
9 Liabilities for securities	116	8.870.000	9.452.164
10 Liabilities to employees	117	2.255.225	2.161.490
11 Taxes, contributions and similar liabilities	118	3.908.720	7.007.820
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	180.309
E) ACCRUALS AND DEFERRED INCOME	122	11.141.240	4.838.222
F) TOTAL – LIABILITIES (ADP 067+088+095+107+122)	123	694.112.469	601.295.758
G) OFF-BALANCE SHEET ITEMS	124

for the period 01.01.2019 to 30.09.2019 STATEMENT OF PROFIT OR LOSS

XI PRE-TAX PROFIT OR LOSS (ADP 177-178)

IX TOTAL INCOME (ADP 125+154+173 + 174) X TOTAL EXPENDITURE (ADP 131+165+175 + 176)

VIII SHARE IN LOSS OF JOINT VENTURES

VI SHARE IN PROFIT FROM JOINT VENTURES

4 Exchange rate differences and other expenses

5 Unrealised losses (expenses) from financial assets 6 Value adjustments of financial assets (net)

V SHARE IN PROFIT FROM UNDERTAKINGS LINKED BY VRITUE OF

VII SHARE IN LOSS OF COMPANIES LINKED BY VIRTUE OF

1 Pre-tax profit (ADP 177-178)

PARTICIPATING INTERESTS

7 Other financial expenses

PARTICIPATING INTEREST

Submitter: Granolio d.d.
Item			Same period of the previous year		Current period
		Cumulative	Quarter	Cumulative	Quarter
1	2	3	4	5	6
I OPERATING INCOME (ADP 126 to 130)	125	381.412.587	143.308.649	348.336.861	129.922.604
1 Income from sales with undertakings within the group	126	0	0	0	0
2 Income from sales (outside group)	127	365.511.774	135.684.175	336.927.254	127.077.522
3 Income from the use of own products, goods and services	128	1.452.409	437.141	1.007.556	135.083
4 Other operating income with undertakings within the group	129	0	0	0	0
5 Other operating income (outside the group)	130	14.448.404	7.187.333	10.402.051	2.709.999
II OPERATING EXPENSES (ADP 132+133+137+141+142+143+146+153)	131	384.647.053	143.406.175	356.311.430	127.614.133
1 Changes in inventories of work in progress and finished goods	132	-2.967.033	3.763.642	279.207	3.289.476
2 Material costs (ADP 134 to 136)	133	325.244.370	119.159.898	299.482.329	105.904.037
a) Costs of raw materials and consumables	134	223.904.766	79.732.490	227.171.695	78.196.739
b) Costs of goods sold	135	70.557.146	26.170.128	49.743.924	18.972.033
c) Other external costs	136	30.782.458	13.257.279	22.566.710	8.735.265
3 Staff costs (ADP 138 to 140)	137	28.219.497	9.633.564	27.348.094	8.962.380
a) Net salaries and wages	138	18.189.447	6.227.435	17.720.707	5.823.027
b) Tax and contributions from salary costs	139	6.050.066	2.051.607	6.014.004	1.964.361
c) Contributions on salaries	140	3.979.985	1.354.522	3.613.383	1.174.992
4 Depreciation	141	22.958.526	7.605.885	20.485.073	6.599.476
5 Other costs	142	4.920.389	1.446.644	4.615.292	1.417.158
6 Value adjustments (ADP 144+145)	143	0	0	21.614	3.847
a) fixed assets other than financial assets	144	0	0	17.767	0
b) current assets other than financial assets			0	3.847	3.847
	145	0	0	0	0
7 Provisions (ADP 147 to 152)	146	0
a) Provisions for pensions, termination benefits and similar obligations	147	0	0
b) Provisions for tax liabilities	148	0	0
c) Provisions for ongoing legal cases	149	0	0
d) Provisions for renewal of natural resources	150	0	0
e) Provisions for warranty obligations	151	0	0
f) Other provisions	152	0	0
8 Other operating expenses	153	6.271.304	1.796.542	4.079.821	1.437.759
III FINANCIAL INCOME (ADP 155 to 164)	154	2.449.494	273.817	1.132.651	142.432
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
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	542.052	189.776	99.420	31.779
7 Other interest income	161	48.159	28.240	613.118	24.741
8 Exchange rate differences and other financial income	162	1.859.283	55.801	196.611	50.227
9 Unrealised gains (income) from financial assets	163	0	0	0	0
10 Other financial income	164	0	0	223.502	35.685
IV FINANCIAL EXPENSES (ADP 166 to 172)	165	3.648.196	1.448.492	7.308.229	4.835.933
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	2.707.545	835.283	3.153.628	905.927

169 918.516 612.685 284.813 85.473 170 0 0 0 0 171 0 0 0 0 172 22.135 524 3.869.788 3.844.533 173 0 0 0 0 174 0 0 0 0 175 0 0 0 0 176 0 0 0 0 177 383.862.081 143.582.466 349.469.512 130.065.036 178 388.295.249 144.854.667 363.619.659 132.450.066 179 -4.433.168 -1.272.201 -14.150.147 -2.385.030 180 0 0 0 0

in HRK

2 Pre-tax loss (ADP 178-177)	181	-4.433.168	-1.272.201	-14.150.147	-2.385.030
XII INCOME TAX	182	0	0	0	0
XIII PROFIT OR LOSS FOR THE PERIOD (ADP 179-182)	183	-4.433.168	-1.272.201	-14.150.147	-2.385.030
1 Profit for the period (ADP 179-182)	184	0	0	0	0
2 Loss for the period (ADP 182-179)	185	-4.433.168	-1.272.201	-14.150.147	-2.385.030
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)	192
1 Pre-tax profit (ADP 192)	193
2 Pre-tax loss (ADP 192)	194
XVII INCOME TAX (ADP 182+189)	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	-4.433.168	-1.272.201	-14.150.147	-2.385.030
1 Attributable to owners of the parent	200	-6.788.765	-2.554.892	-15.363.460	-3.314.856
2 Attributable to minority (non-controlling) interest	201	2.355.597	1.282.691	1.213.313	929.826
STATEMENT OF OTHER COMPRHENSIVE INCOME (to be filled in by undertakings subject to IFRS)
I PROFIT OR LOSS FOR THE PERIOD II OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX	202	-4.433.168	-1.272.201	-14.150.147	-2.385.030
(ADP 204 to 211)	203	0	0	0	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	206
available for sale
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	208
foreign operation
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	214	-4.433.168	-1.272.201	-14.150.147	-2.385.030
202+213) 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	-4.433.168	-1.272.201	-14.150.147	-2.385.030
1 Attributable to owners of the parent	216	-6.788.765	-2.554.892	-15.363.460	-3.314.856
2 Attributable to minority (non-controlling) interest	217	2.355.597	1.282.691	1.213.313	929.826

STATEMENT OF CASH FLOWS - indirect method for the period 01.01.2019. . to 30.09.2019.

in HRK

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	-4.433.169	-14.150.147
2 Adjustments (ADP 003 to 010): a) Depreciation	002	21.068.252	19.911.581
b) Gains and losses from sale and value adjustment of fixed tangible and	003	22.958.527	20.485.073
intangible assets	004	2.465.398	687.629
c) Gains and losses from sale and unrealised gains and losses and value	005		3.644.592
adjustment of financial assets d) Interest and dividend income
e) Interest expenses	006 007	-589.947 2.567.460	-711.521 3.153.627
f) Provisions	008		0
g) Exchange rate differences (unrealised)	009	-1.035.612	8.384
h) Other adjustments for non-cash transactions and unrealised gains and			-7.356.203
losses	010	-5.297.573
I Cash flow increase or decrease before changes in working capital (ADP 001+002)	011	16.635.083	5.761.434
3 Changes in the working capital (ADP 013 to 016)	012	1.288.502	28.707.517
a) Increase or decrease in short-term liabilities	013	13.487.803	34.355.592
b) Increase or decrease in short-term receivables	014	4.870.927	1.103.901
c) Increase or decrease in inventories	015	-17.070.228	-6.751.976
d) Other increase or decrease in working capital	016	0	0
II Cash from operations (ADP 011+012)	017	17.923.585	34.468.951
4 Interest paid 5 Income tax paid	018 019	-2.619.238 -490.000	-3.029.303 0
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019)	020	14.814.347	31.439.648
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	83.945	685.615
4 Dividends received	024		0
5 Cash receipts from repayment of loans and deposits	025	153.498	3.366.155
6 Other cash receipts from investment activities	026	-9.786	3.988.564
III Total cash receipts from investment activities (ADP 021 to 026)	027	227.657	8.040.334
1 Cash payments for the purchase of fixed tangible and intangible assets	028	-5.990.004	-8.748.725
2 Cash payments for the acquisition of financial instruments	029		0
3 Cash payments for loans and deposits for the period	030	-10.136.103	-24.107.591
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	-16.126.107	-32.856.316
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033)	034	-15.898.450	-24.815.982
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	036	0	0
financial instruments
3 Cash receipts from credit principals, loans and other borrowings 4 Other cash receipts from financing activities	037	35.551.515	8.968.719
	038	0	0
V Total cash receipts from financing activities (ADP 035 to 038)	039	35.551.515	8.968.719
1 Cash payments for the repayment of credit principals, loans and other	040	-30.187.042	-21.850.092
borrowings and debt financial instruments
2 Cash payments for dividends	041		0
3 Cash payments for finance lease 4 Cash payments for the redemption of treasury shares and decrease in	042	-1.136.826	-651.588
initial (subscribed) capital	043	0	0
5 Other cash payments from financing activities	044	-1.420.000	-1.590.000
VI Total cash payments from financing activities (ADP 040 to 044)	045	-32.743.868	-24.091.680
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045)	046	2.807.647	-15.122.961
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	1.723.545	-8.499.295
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	5.328.507	1.840.380

STATEMENT OF CHANGES IN EQUITY

for the period from 1.1.2019	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	-868.634	-201.662.286
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	-38.002.543 0	58.358.525	20.355.982 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	-868.634	-201.662.286	-38.002.543	58.358.525	20.355.982
5 Profit/loss of the period	05	0		0 0	0	0		0 0	0	0	0	0	0	-6.788.765	-6.788.765		-6.788.765
6 Exchange rate differences from translation of foreign operations 7 Changes in revaluation reserves of fixed tangible and intangible assets	06 07	0 0		0 0 0 0	0 0	0 0		0 0 0	0 -2.245.547	0 0	0 0	0 0	0 2.245.547	0	0 0		0 0
8 Profit or loss arising from subsequent measurement of financial assets available for	08	0		0 0	0	0		0 0	0		0	0			0		0
sale 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	11	0		0 0	0	0		0 0	0	0	0	0	0		0		0
participating interests 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	-726.812		-38.189		-38.189
14 Tax on transactions recognised directly in equity	14	0		0 0	0	0		0 0	-122.285	0	0	0	492.925		370.640		370.640
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	19							0	0	0	0	0	0		0		0
20 Other distribution to owners	20							0	0	0	0	0	0		0		0
21 Transfer to reserves according to the annual schedule	21							0	0	0	0	0	-201.662.286	201.662.286	0	2.355.597	2.355.597
22 Increase in reserves arising from the pre-bankruptcy settlement procedure 23 Balance on the last day of the previous business year reporting period (04 to	22							0	0	0	0	0	0		0		0
22)	23	19.016.430	84.195.807	408.227	800.000	0		0 0	58.428.704	0	0	0	-200.519.260	-6.788.765	-44.458.857	60.714.122	16.255.265
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	-1.688.469	0	0	0	2.011.660	0	332.451	0	332.451
II COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD (ADP 05+24)	25	0	9.260	0	0	0		0 0	-1.688.469	0	0	0	2.011.660	-6.788.765	-6.456.314	0	-6.456.314
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	-201.662.286	201.662.286	0	2.355.597	2.355.597
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 3 Correction of errors	28 29	0 0		0 0 0 327	0 0	0 0		0 0 0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 327		0 327
4 Balance on the first day of the current business year (restated) (ADP 27 to 29)			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
	30	19.016.430
5 Profit/loss of the period 6 Exchange rate differences from translation of foreign operations	31 32	0		0 0 0 0	0 0	0 0		0 0 0	0 0	0 0	0 0	0 0	0 0	-15.363.460 0	-15.363.460		-15.363.460 0
		0													0
7 Changes in revaluation reserves of fixed tangible and intangible assets	33	0		0 0	0	0		0 0	-2.251.685	0	0	0	2.251.685		0		0
8 Profit or loss arising from subsequent measurement of financial assets available for sale	34	0		0 0	0	0		0 0	0		0	0			0		0
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 participating interests	37	0		0 0	0	0		0							0		0
12 Actuarial gains/losses on the defined benefit obligation	38	0		0 0	0	0		0							0		0
13 Other changes in equity unrelated to owners 14 Tax on transactions recognised directly in equity	39			0 0	0	0		0					-9.900.415 493.262	0 0	-9.900.415	-31.098.530	-40.998.945 493.262
15 Increase/decrease in initial (subscribed) capital (other than from reinvesting profit and other than arising from the pre-bankruptcy settlement procedure)	40 41	0											0	0	493.262 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	45												0	0	0		0
20 Other distribution to owners	46												0	0	0		0
21 Transfer to reserves according to the annual schedule 22 Increase in reserves arising from the pre-bankruptcy settlement procedure	47 48			3.088.369									78.772.855 0	-81.861.224 0	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	55.426.457	0	0	0	-127.973.361	-15.363.460	19.598.796	29.338.673	48.937.469
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	-2.251.685	0	0	0	-7.155.468	0	-9.407.153	-31.098.530	-40.505.683
(ADP 32 to 40) II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP
31+50)	51	0		0 0	0	0		0 0	-2.251.685	0	0	0	-7.155.468	-15.363.460	-24.770.613	-31.098.530	-55.869.143
III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED 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	0	0

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. -30.09.2019.

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.