Unconsolidated financial results for the twelve months period ended 31 December 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.

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

Subsidiaries

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

Significant business events in the accounting period

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 the financial statements for 2018, no profit nor loss from sale of investment has been recognized in Statement of total comprehensive income.

During 2019, the Company diposed 50,000 shares of Zagrebačke pekarne Klara d.d. (17.62% of share capital) form it's portfolio. Disposal resulted in accounting loss in the amount of HRK 3.8 million.

In January 2019 the Company has started to account for and pay interest on financial debt that is a part of pre-bankruptcy settlement.

In 2019 the Company received dividend from it's daughter company Zdenka – mliječni proizvodi d.o.o. in the amount of HRK 2 million.

Company's financial indicators for the twelve months of 2019

	In thousands HRK
Granolio d.d.	1-12 2019	1-12 2018	change
Operating income	306.355	291.448	14.907	5%
Operating expenses	317.150	320.790	(3.640)	(1%)
EBIT	(10.795)	(29.342)	18.547	(63%)
EBIT margin	-4%	-10%
EBITDA	(169)	2.885	(3.054)	(106%)
EBITDA margin	0%	1%
Net financial result	(3.441)	91.110	(94.551)	(104%)
Net result for the period	(14.236)	61.767	(76.003)	123%

*EBITDA= EBIT + depreciation + impairment expenses

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

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, the Company realized loss from sale of non-current financial asset and profit from dividends.

Net financial result was positive in 2018 due to recognition of revenue from liabilities write off according to the pre-bankruptcy settlement in the amount of HRK 91.4 million.

			In thousands HRK
Granolio d.d.	31.12.2019	31.12.2018	change
Net asset (capital and reserves)	40.933	54.480	(13.547)	(25%)
Total debt	320.370	372.718	(52.348)	(14%)
Cash and cash equivalents	2.710	3.574	(864)	(24%)
Loans given, deposits etc.*	24.644	36.328	(11.684)	(32%)
Net debt	293.016	332.816	(39.800)	(12%)
Net debt/EBITDA		115,36
EBITDA for the last 12 months	(169)	2.885	(3.054)	(106%)

*Loans given, securities and deposits

Total debt is decreased in 2019 for the amount of compensation of loan liability and receivables, and in smaller portion for debt repayment.

The Company monitors its business operations through four business segments:

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

Sales income is greater than income earned in the last year. Significant increase is recorded in trading segment where sales income in 2019 has increased by 25% compared to the last year.

Employees

In the twelve months period 2019 the Company employed 162 employees based on man-hour basis (in the twelve months period 2018: 153 employees).

Redemption of treasury shares

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

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

Environment

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

Other

Supervisory Board has approved Company's financial statements for the twelve months period of 2019.

Annex 1
		ISSUER'S GENERAL DATA
Reporting period:		1.1.2019	to	31.12.2019
Year:		2019
Quarter:		4.
		Quarterly financial statements
Registration number (MB):	01244272		Issuer's home Member State code:	Hrvatska
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: [email protected]
	Web address: www.granolio.hr
Number of employees (end of the reporting	168
Consolidated report:	KN	(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:








					Yes No
Bookkeeping firm:	No	(Yes/No)		(name of the bookkeeping firm)
	Contact person: Mirjana Kelava
	(only name and surname of the contact person) Telephone: 01/6320-233
	E-mail address: [email protected]
	Audit firm: BDO Croatia d.o.o.
	(name of the audit firm)
Certified auditor: Hrvoje Stipić	(name and surname)

BALANCE SHEET balance as at 31.12.2019

Submitter:Granolio d.d.			in HRK
Item	ADP code	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	001	0	0
B) FIXED ASSETS (ADP 003+010+020+031+036) I INTANGIBLE ASSETS (ADP 004 to 009)	002 003	376.229.861 122.614.230	334.232.721 121.088.941
1 Research and development	004	0	0
2 Concessions, patents, licences, trademarks, software and other	005	120.250.063	120.166.098
rights
3 Goodwill 4 Advances for the purchase of intangible assets	006	0	0 0
5 Intangible assets in preparation	007 008	0 0	0
6 Other intangible assets	009	2.364.167	922.843
II TANGIBLE ASSETS (ADP 011 to 019)	010	151.119.937	141.539.997
1 Land	011	9.155.420	8.684.216
2 Buildings	012	115.283.310	108.103.601
3 Plant and equipment 4 Tools, working inventory and transportation assets	013	12.076.530	10.391.345 268.460
5 Biological assets	014 015	576.321 0	0
6 Advances for the purchase of tangible assets	016	0	0
7 Tangible assets in preparation	017	9.334.080	9.384.080
8 Other tangible assets	018	79.276	93.295
9 Investment property	019	4.615.000	4.615.000
III FIXED FINANCIAL ASSETS (ADP 021 to 030)	020	102.480.694	71.603.783
1 Investments in holdings (shares) of undertakings within the group 2 Investments in other securities of undertakings within the group	021 022	92.427.762 0	70.427.762 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 5 Investment in other securities of companies linked by virtue of	024	0	0
participating interests 6 Loans, deposits etc. to companies linked by virtue of participating	025	0	0
interests	026	0	0
7 Investments in securities	027	0	0
8 Loans, deposits, etc. given 9 Other investments accounted for using the equity method	028 029	193.062 0	145.684 0
10 Other fixed financial assets	030	9.859.870	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	036	0	0
C) CURRENT ASSETS (ADP 038+046+053+063) I INVENTORIES (ADP 039 to 045)	037 038	142.661.088 10.075.836	127.366.747 20.284.892
1 Raw materials and consumables	039	5.704.493	7.054.834
2 Work in progress	040	181.223	83.677
3 Finished goods	041	1.608.644	1.872.107
4 Merchandise	042	2.581.476	11.274.274
5 Advances for inventories	043	0	0
6 Fixed assets held for sale 7 Biological assets	044 045	0 0	0 0
II RECEIVABLES (ADP 047 to 052)	046	92.875.534	79.873.131
1 Receivables from undertakings within the group	047	8.611.329	9.668.968
2 Receivables from companies linked by virtue of participating interests	048	0	0
3 Customer receivables	049	55.445.225	45.084.020
4 Receivables from employees and members of the undertaking	050	0	0
5 Receivables from government and other institutions	051	670.540	2.281.646
6 Other receivables III CURRENT FINANCIAL ASSETS (ADP 054 to 062)	052	28.148.440	22.838.497 24.498.478
1 Investments in holdings (shares) of undertakings within the group	053 054	36.135.368 0	0
2 Investments in other securities of undertakings within the group	055	0	0
3 Loans, deposits, etc. to undertakings within the group	056	22.935.460	10.374.630
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	058	0	0
6 Loans, deposits etc. to companies linked by virtue of participating interests	059	0	0
7 Investments in securities	060	178.281	149.624
8 Loans, deposits, etc. given	061	13.021.627	13.974.224 0
9 Other financial assets IV CASH AT BANK AND IN HAND	062 063	0 3.574.350	2.710.246
D ) PREPAID EXPENSES AND ACCRUED INCOME	064	504.406	390.423
E) TOTAL ASSETS (ADP 001+002+037+064)	065	519.395.355	461.989.891
OFF-BALANCE SHEET ITEMS	066	9.810.363	9.163.871

LIABILITIES
A) CAPITAL AND RESERVES (ADP 068 to	067	54.480.310	40.932.146
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	1.208.554	4.296.923
1 Legal reserves	071	408.554	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	54.675.895
V FAIR VALUE RESERVES (ADP 078 to 080)	077	0	0
1 Fair value of financial assets available for sale	078	0	0
2 Cash flow hedge - effective portion	079	0	0
3 Hedge of a net investment in a foreign operation - effective portion	080	0	0
VI RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 082- 083)	081	-169.386.014	-107.016.282
1 Retained profit	082	0	0
2 Loss brought forward	083	169.386.014	107.016.282
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 085-086)	084	61.767.391	-14.236.627
1 Profit for the business year	085	61.767.391	0
2 Loss for the business year	086	0	14.236.627
VIII MINORITY (NON-CONTROLLING) INTEREST	087	0	0
B) PROVISIONS (ADP 089 to 094)	088	0	0
1 Provisions for pensions, termination benefits and similar obligations	089	0	0
2 Provisions for tax liabilities	090	0	0
3 Provisions for ongoing legal cases	091	0	0
4 Provisions for renewal of natural resources	092	0	0
5 Provisions for warranty obligations	093	0	0
6 Other provisions	094	0	0
C) LONG-TERM LIABILITIES (ADP 096 to 106)	095	427.778.487	350.139.555
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.			159.566.584
6 Liabilities to banks and other financial institutions	100	0	113.796.135
7 Liabilities for advance payments	101	363.368.612	0
8 Liabilities to suppliers	102 103	0 51.748.819	34.895.728
9 Liabilities for securities	104	0	29.879.082
10 Other long-term liabilities	105	0	0
11 Deferred tax liability	106	12.661.056	12.002.026
D) SHORT-TERM LIABILITIES (ADP 108 to 121)	107	36.845.258	70.731.486
1 Liabilities to undertakings within the group	108	27.456	54.380
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	111	0	0
participating interests
5 Liabilities for loans, deposits etc.	112	0	3.494.159
6 Liabilities to banks and other financial institutions	113	451.151	3.969.541
7 Liabilities for advance payments	114	668.221	4.403.875
8 Liabilities to suppliers	115	24.239.849	47.297.732
9 Liabilities for securities	116	8.870.000	9.666.218
10 Liabilities to employees	117	938.475	1.112.640
11 Taxes, contributions and similar liabilities	118	1.645.410	525.372
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	4.696	207.569 186.704
E) ACCRUALS AND DEFERRED INCOME	122	291.301
F) TOTAL – LIABILITIES (ADP 067+088+095+107+122)	123	519.395.356	461.989.891 9.163.871
G) OFF-BALANCE SHEET ITEMS	124	9.810.363

for the period 01.01.2019 to 31.12.2019 STATEMENT OF PROFIT OR LOSS

in HRK

Submitter: Granolio d.d.
Item	ADP code	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	291.447.663	96.677.036	306.355.325	96.845.027
1 Income from sales with undertakings within the group	126	5.604.271	2.028.613	5.000.748	1.113.045
2 Income from sales (outside group)	127	280.215.756	91.490.094	295.178.333	92.571.074
3 Income from the use of own products, goods and services	128	40.239	34.803 0	26.818 0	3.533 0
4 Other operating income with undertakings within the group 5 Other operating income (outside the group)	129 130	0	3.123.526	6.149.426	3.157.375
II OPERATING EXPENSES (ADP 132+133+137+141+142+143+146+153)	131	5.587.397 320.789.555	115.603.885	317.150.134	96.559.750
1 Changes in inventories of work in progress and finished goods	132	-214.912	152.531	-1.054.457	-180.588
2 Material costs (ADP 134 to 136)	133	268.028.330	85.479.881	285.421.186	87.719.636
a) Costs of raw materials and consumables	134	166.961.759	32.530.301	195.010.326	52.603.188
b) Costs of goods sold	135	62.605.402	32.057.618	69.172.382	28.487.400
c) Other external costs	136	38.461.169	20.891.962	21.238.478	6.629.048
3 Staff costs (ADP 138 to 140)	137	16.422.734	4.162.165	17.857.126	4.764.979
a) Net salaries and wages	138	10.404.000	2.657.739	11.423.193	3.094.498
b) Tax and contributions from salary costs	139	3.834.416	956.868	4.214.048	1.087.691
c) Contributions on salaries	140	2.184.318	547.558	2.219.885	582.790
4 Depreciation	141	10.458.798	2.656.193	10.625.817	2.670.198
5 Other costs	142	2.592.450	880.832	2.580.419	911.085
6 Value adjustments (ADP 144+145)	143	21.767.803	21.767.803	0	0
a) fixed assets other than financial assets	144	21.246.789	21.246.789	0	0
b) current assets other than financial assets	145	521.014	521.014	0	0
7 Provisions (ADP 147 to 152)	146	0	0	0	0
a) Provisions for pensions, termination benefits and similar obligations	147	0	0	0	0
b) Provisions for tax liabilities	148	0	0	0	0
c) Provisions for ongoing legal cases	149	0	0	0	0
d) Provisions for renewal of natural resources	150	0	0	0	0
e) Provisions for warranty obligations	151	0	0	0	0
f) Other provisions	152	0	0	0	0
8 Other operating expenses	153	1.734.352	504.480	1.720.043	674.440
III FINANCIAL INCOME (ADP 155 to 164)	154	92.767.980	91.818.572	3.496.786	2.296.743
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	475.073	139.915
4 Other interest income from operations with undertakings within the group	158	585.911	144.573	0	0
5 Exchange rate differences and other financial income from operations	159	0	0	0	0
with undertakings within the group
6 Income from other long-term financial investments and loans	160	203.990	203.990	16.490	15.473
7 Other interest income	161	82.434	34.538	657.225	50.689
8 Exchange rate differences and other financial income	162	500.305	40.131	78.559	44.729
9 Unrealised gains (income) from financial assets	163	0	0	0	0
10 Other financial income	164	91.395.340	91.395.340	2.269.439	2.045.937
IV FINANCIAL EXPENSES (ADP 166 to 172)	165	1.658.696	486.292	6.938.604	969.678
1 Interest expenses and similar expenses with undertakings within the group	166	515.661	0	26.255	26.255
2 Exchange rate differences and other expenses from operations with undertakings within the group	167	0		0	0
3 Interest expenses and similar expenses	168	740.884	412.165	2.902.544	888.010
4 Exchange rate differences and other expenses	169	380.276	74.077	136.890	52.286
5 Unrealised losses (expenses) from financial assets	170	0		0	0
6 Value adjustments of financial assets (net)	171	0		0	0
7 Other financial expenses	172	21.875	50	3.872.915	3.127
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			0	0	0
PARTICIPATING INTEREST	175	0
VIII SHARE IN LOSS OF JOINT VENTURES	176	0	0	0	0
IX TOTAL INCOME (ADP 125+154+173 + 174)	177	384.215.643	188.495.608	309.852.111	99.141.770
X TOTAL EXPENDITURE (ADP 131+165+175 + 176)	178	322.448.251	116.090.177	324.088.738	97.529.428
XI PRE-TAX PROFIT OR LOSS (ADP 177-178)	179	61.767.392	72.405.431	-14.236.627	1.612.342
1 Pre-tax profit (ADP 177-178)	180	61.767.392	72.405.431	0	1.612.342

2 Pre-tax loss (ADP 178-177)	181	0	0	-14.236.627	0
XII INCOME TAX	182	0	0	0	0
XIII PROFIT OR LOSS FOR THE PERIOD (ADP 179-182)	183	61.767.392	72.405.431	-14.236.627	1.612.342
1 Profit for the period (ADP 179-182)	184	61.767.392	72.405.431	0	1.612.342
2 Loss for the period (ADP 182-179)	185	0	0	-14.236.627	0
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	0	0	0	0
2 Pre-tax loss on discontinued operations	188	0	0	0	0
XV INCOME TAX OF DISCONTINUED OPERATIONS	189	0	0	0	0
1 Discontinued operations profit for the period (ADP 186-189)	190	0	0	0	0
2 Discontinued operations loss for the period (ADP 189-186)	191	0	0	0	0
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	0	0	0	0
1 Pre-tax profit (ADP 192)	193	0	0	0	0
2 Pre-tax loss (ADP 192)	194	0	0	0	0
XVII INCOME TAX (ADP 182+189)	195	0	0	0	0
XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 192-195)	196	0	0	0	0
1 Profit for the period (ADP 192-195)	197	0	0	0	0
2 Loss for the period (ADP 195-192)	198	0	0	0	0
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	0	0	0	0
1 Attributable to owners of the parent	200	0	0	0	0
0 0 0 2 Attributable to minority (non-controlling) interest 201 0

STATEMENT OF OTHER COMPRHENSIVE INCOME (to be filled in by undertakings subject to IFRS)
I PROFIT OR LOSS FOR THE PERIOD	202	61.767.292	72.405.431	-14.236.627	1.612.342
II OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX	203	0	0	0
(ADP 204 to 211)
1 Exchange rate differences from translation of foreign operations	204	0	0	0
2 Changes in revaluation reserves of fixed tangible and intangible assets	205	0	0	0
3 Profit or loss arising from subsequent measurement of financial assets	206	0	0	0
available for sale
4 Profit or loss arising from effective cash flow hedging	207	0	0	0
5 Profit or loss arising from effective hedge of a net investment in a
foreign operation	208	0	0	0	0 0 0 0 0 0
6 Share in other comprehensive income/loss of companies linked by	209	0	0	0	0
virtue of participating interests
7 Actuarial gains/losses on the defined benefit obligation	210	0	0	0	0
8 Other changes in equity unrelated to owners	211	0	0	0	0
III TAX ON OTHER COMPREHENSIVE INCOME FOR THE PERIOD	212	0	0	0
IV NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 203-212)	213	0	0	0	0 0
V COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP	214	61.767.292	72.405.431	-14.236.627	1.612.342
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	215	0	0	0	0
216+217) 1 Attributable to owners of the parent	216	0	0	0	0

STATEMENT OF CASH FLOWS - indirect method for the period 01.01.2019 to 31.12.2019

Submitter: Granolio d.d.			in HRK
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	61.767.391	-14.236.627
2 Adjustments (ADP 003 to 010):	002	-61.502.730	12.304.419
a) Depreciation b) Gains and losses from sale and value adjustment of fixed tangible and	003 004	10.458.798 -8.874	10.625.816 -694.836
intangible assets c) Gains and losses from sale and unrealised gains and losses and value
adjustment of financial assets	005	-69.627.537	3.605.759
d) Interest and dividend income e) Interest expenses	006	-872.335	-1.148.789
f) Provisions	007 008	1.256.544 0	2.868.649 0
g) Exchange rate differences (unrealised)	009	0	3.216
h) Other adjustments for non-cash transactions and unrealised gains and losses	010	-2.709.326	-2.955.396
I Cash flow increase or decrease before changes in working capital	011	264.661	-1.932.208
(ADP 001+002)
3 Changes in the working capital (ADP 013 to 016)	012	4.337.897	12.884.801
a) Increase or decrease in short-term liabilities	013	-856.332	8.940.879
b) Increase or decrease in short-term receivables	014	-7.878.303	11.159.021
c) Increase or decrease in inventories d) Other increase or decrease in working capital	015	13.072.532	-7.215.099
II Cash from operations (ADP 011+012)	016 017	0 4.602.558	0 10.952.593
4 Interest paid	018	-709.459	-2.662.250
5 Income tax paid	019	-447.639	0
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019)	020	3.445.460	8.290.343
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	322.331	1.118.755
4 Dividends received	024	0	0
5 Cash receipts from repayment of loans and deposits	025	841.181	17.541.796
6 Other cash receipts from investment activities	026	10.215	11.268.611
III Total cash receipts from investment activities (ADP 021 to 026)	027	1.173.727	29.929.162
1 Cash payments for the purchase of fixed tangible and intangible assets	028	-2.361.002	-3.489.527
2 Cash payments for the acquisition of financial instruments	029	0	0
3 Cash payments for loans and deposits for the period	030	0	-27.780.252
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	-2.361.002	-31.269.779
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033)	034	-1.187.275	-1.340.617
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	780.000	2.000.000
4 Other cash receipts from financing activities	038	0	0
V Total cash receipts from financing activities (ADP 035 to 038)	039	780.000	2.000.000
1 Cash payments for the repayment of credit principals, loans and other borrowings and debt financial instruments	040	-729.000	-7.260.000
2 Cash payments for dividends	041	0	0
3 Cash payments for finance lease	042	-505.561	-453.831
4 Cash payments for the redemption of treasury shares and decrease in	043	0	0
initial (subscribed) capital
5 Other cash payments from financing activities	044	-1.030.000	-2.100.000
VI Total cash payments from financing activities (ADP 040 to 044)	045	-2.264.561	-9.813.831
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045)	046	-1.484.561	-7.813.831
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	773.624	-864.105
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	049	2.800.724	3.574.350
F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD(ADP 048+049)	050	3.574.348	2.710.245

STATEMENT OF CHANGES IN EQUITY

for the period from 1.1.2019	to 31.12.2019															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
1 Balance on the first day of the previous business year 2 Changes in accounting policies	01 02	19.016.430 0	84.186.547 0	408.554 0	800.000	0 0 0		0 0	0 60.117.173 0 0		0 0	0 0 0 0	9.803.142 0	-198.186.628 0	-23.854.782 0	0 0	-23.854.782 0
3 Correction of errors	03	0	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	408.554	800.000	0		0	0 60.117.173		0	0 0	9.803.142	-198.186.628	-23.854.782	0	-23.854.782
5 Profit/loss of the period	05	0	0	0		0 0		0	0 0		0	0 0	0	61.767.391	61.767.391	0	61.767.391
6 Exchange rate differences from translation of foreign operations	06	0	0	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	07	0	0	0		0 0		0	0 -2.996.109		0	0 0	2.996.109	0	0	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	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	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	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	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	0	0
13 Other changes in equity unrelated to owners	13	0	9.260	0		0 0		0	0 679.363		0	0 0	15.343.681	0	16.032.304	0	16.032.304
14 Tax on transactions recognised directly in equity	14	0	0	0		0 0		0	0 -122.285		0	0 0	657.682	0	535.397	0	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		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		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		0	0 0	0	0	0	0	0
18 Redemption of treasury shares/holdings	18	0	0	0		0 0		0	0 0		0	0 0	0	0	0	0	0
19 Payment of share in profit/dividend	19	0	0	0		0 0		0	0 0		0	0 0	0	0	0	0	0
20 Other distribution to owners	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 22 Increase in reserves arising from the pre-bankruptcy settlement procedure	21 22	0 0	0 0	0 0		0 0 0 0		0 0	0 0 0 0		0 0	0 0 0 0	-198.186.628 0	198.186.628 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	408.554	800.000	0		0	0 57.678.142		0	0 0	-169.386.014	61.767.391	54.480.310	0	54.480.310
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	18.997.472	0	16.567.701	0	16.567.701
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	18.997.472	61.767.391	78.335.092	0	78.335.092
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	-198.186.628	198.186.628	0	0	0
Current period
1 Balance on the first day of the current business year	27	19.016.430	84.195.807	408.554	800.000	0		0	0 57.678.142		0	0 0	-169.386.013	61.767.391	54.480.311	0	54.480.311
2 Changes in accounting policies	28	0	0	0		0 0		0	0 0		0	0 0	0	0	0	0	0
3 Correction of errors	29	0	0	0		0 0		0	0 0		0	0 0	0	0	0	0	0
4 Balance on the first day of the current business year (restated) (ADP 27 to 29)	30	19.016.430	84.195.807 0	408.554 0	800.000	0 0 0		0 0	0 57.678.142 0 0		0 0	0 0 0 0	-169.386.013 0	61.767.391 -14.240.077	54.480.311	0	54.480.311
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	-14.240.077 0	0 0	-14.240.077 0

7 Changes in revaluation reserves of fixed tangible and intangible assets	33	0	0	0		0 0		0	0 -3.002.247		0	0 0	3.002.247	0	0	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	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	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	0	0	0	0
11 Share in other comprehensive income/loss of companies linked by virtue of	37	0	0	0		0 0		0	0 0		0	0 0	0	0	0	0	0
participating interests			0	0		0 0		0	0 0		0	0 0	0	0
12 Actuarial gains/losses on the defined benefit obligation 13 Other changes in equity unrelated to owners	38 39	0 0	0	0		0 0		0	0 0		0	0 0	29.433	0	0 29.433	0 0	0 29.433
14 Tax on transactions recognised directly in equity	40	0	0	0		0 0		0	0 0		0	0 0	659.030	0	659.030	0	659.030
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 0		0	0 0		0	0 0	0	0	0	0	0
16 Increase in initial (subscribed) capital arising from the reinvestment of profit	42	0	0	0		0 0		0	0 0		0	0 0	0	0	0	0	0
17 Increase in initial (subscribed) capital arising from the pre-bankruptcy settlement procedure	43	0	0	0		0 0		0	0 0		0	0 0	0	0	0	0	0
18 Redemption of treasury shares/holdings	44	0	0	0		0 0		0	0 0		0	0 0	0	0	0	0	0
19 Payment of share in profit/dividend	45	0	0	0		0 0		0	0 0		0	0 0	0	0	0	0	0
20 Other distribution to owners 21 Transfer to reserves according to the annual schedule	46 47	0 0	0 0	0 3.088.369		0 0 0 0		0 0	0 0 0 0		0 0	0 0 0 0	0 58.679.022	0 -61.767.391	0 0	0 0	0 0
22 Increase in reserves arising from the pre-bankruptcy settlement procedure	48	0	0	0		0 0		0	0 0		0	0 0	0	0	0	0	0
23 Balance on the last day of the current business year reporting period (ADP	49	19.016.430	84.195.807	3.496.923	800.000	0		0	0 54.675.895		0	0 0	-107.016.281	-14.240.077	40.928.697	0	40.928.697
30 to 48)
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 -3.002.247		0	0 0	3.690.710	0	688.463	0	688.463
(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 -3.002.247		0	0 0	3.690.710	-14.240.077	-13.551.614	0	-13.551.614
DIRECTLY IN EQUITY (ADP 41 to 48)	52	0	0	3.088.369		0 0		0	0 0		0	0 0	58.679.022	-61.767.391	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.- 31.12.2019.

Notes to financial statements for quarterly periods include:

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

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

On March 4, 2019, a contract was signed for the sale of the shares of the associated company Žitar d.o.o,and that transaction was registered in Court register on 14 April 2019. The share of the company Žitar d.o.o.was reduced to net realizable value during 2018, by selling in 2019, the Company did not disclose any result from the sale of shares in the statement of comprehensive income.