Granolio d.d.

Quarterly Report • May 27, 2020

Consolidated financial results for the three months period ended 31 March 2020 (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 three months period of 2020

	In thousands of HRK
	1-3 2020	1-3 2019	change
Operating income	115.924	98.495	17.429	18%
Operating expenses	(118.923)	(105.661)	(13.262)	(13%)
EBIT	(2.999)	(7.166)	4.167	(58%)
EBIT margin	-3%	(7%)
EBITDA	3.143	193	2.950	1528%
EBITDA margin	3%	0%
Net financial result	(1.123)	(1.287)	164	13%
Net result for the period	(4.122)	(8.453)	4.331	51%
Attributable to the Group	(4.211)	(8.258)	4.047	49%
Non-controlling interest	89	(195)	284	146%

The Group's operating revenues are 18% higher than in the comparable period. The increase in revenue was contributed by significantly higher sales of flour in the parent company and cheese in the company Zdenka mliječni proizvodi. The increase in operating revenues was partly due to higher demand for food products in March 2020 due to the pandemic caused by the COVID-19 virus.

The Group's EBITDA in the first quarter of 2020 amounted to HRK 3.1 million and represents a significant increase compared to the comparable period. The increase is mostly the result of a better result in the parent company.

The net financial result represents the difference between financial income and financial expenses.

In thousands of HRK Financial indicators
	31.3.2020	31.12.2019	change
Net assets (Capital and reserves)*	42.450	46.313	(3.863)	(8%)
Total debt	361.044	359.460	1.584	0%
Cash and cash equivalents	1.851	3.298	(1.447)	(44%)
Given loans, deposits and
similar**	27.222	27.237	(15)	(0%)
Net debt	331.971	433.208	(101.237)	(23%)
Net debt/ EBITDA	14,89	13,37
EBITDA for the last 12 months	22.295	19.345

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

** Loans given, securities and deposits

The net assets of the Granolio Group are smaller compared to December 31, 2019. year due to the negative result realsed in the first quarter of 2020.

The total debt of the Group was reduced as a result of debt repayment of the companies Zdenka – mliječni proizvodi and Granolio.

Separate business results for the three months period of 2020

Granolio d.d. In thousands of HRK
	1-3 2020	1-3 2019	change
Operating income	67.772	55.881	11.891	21%
EBIT	(3.967)	(7.217)	3.250	45%
margin %	(6%)	(13%)
EBITDA	(1.707)	(4.567)	2.860	(63%)
margin %	(3%)	(8%)
Net financial result	(546)	(561)	15	3%
Net result	(4.513)	(7.778)	3.265	42%
margin %	(6,7%)	(13,9%)

In the first quarter of 2020, a more favorable operating result was achieved compared to the same period last year. The increase in revenue and better EBITDA value are the result of higher flour sales in January and February 2020. The increase in flour sales in March 2020 was partly due to higher demand for food products due to the pandemic caused by the COVID-19 virus.

Net financial result represents the difference between financial revenues and financial expenses. Financial expenses consist mostly of interest on the financial debt which is part of the pre-bankruptcy settlement.

Zdenka - mliječni proizvodi d.o.o.	In thousands of HRK
	1-3 2020	1-3 2019	change
Operating income	43.460	32.525	10.935	34%
EBIT	546	635	(89)	14%
margin %	1%	2%
EBITDA	3.672	3.776	(104)	(3%)
margin %	8%	12%
Net financial result	(368)	(224)	(144)	(64%)
Net result	178	411	(233)	57%
margin %	0%	1%

In the first quarter of 2020, the Company generated revenues higher by 34% compared to the same period last year. The reason for this is better cheese sales in the first months of the year.

The prices of basic raw materials for production in 2020 increased compared to the previous year, while the sales prices realized in the observed period do not follow the growth of raw material prices to the same extent. This caused a decrease in margins in 2020 compared to the comparable period. In addition to the above, the cost of employees increased compared to the previous year.

The unfavorable financial result was due to the significantly higher cost of negative exchange rate differences in 2020.

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

	1-3 2020	1-3 2019	change
Operating income EBIT	6.049 421	6.473 (163)	(424) 584	(7%) (358%)
margin %	7%	(3%)
EBITDA margin %	1.179 19%	589 9%	590	100%
Net financial result	(207)	(127)	(80)	(63%)
Net result	214	(290)	504	(174%)
margin %	4%	(4%)

In the first quarter of 2020, the total delivery of milk by the company Zdenačka farma amounted to 1 million kilos (Q1 2019: 1 million kilos). The average sales price realized in the first quarter of 2020 is higher than the average sales price realized in the comparative period by 9%, which gives a total increase in revenue from sales of milk for about 6%. The decrease in total operating revenues is the result of lower sales in trading segment than in comparable period.

Employees

In the three months 2020 the Group employed 390 employees based on man-hour basis (in the three months 2019: 438 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 three months period 2020.

Annex 1
	ISSUER'S GENERAL DATA
Reporting period:	1.1.2020 31.03.2020. to
Year:	2020
Quarter:	1.
	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 412 (end of the reporting
Consolidated report: KD	(KN-not consolidated/KD-consolidated) KN	KD
Audited: RN	RN (RN-not audited/RD-audited)	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
		Yes
Bookkeeping firm: No	(Yes/No) (name of the bookkeeping firm)	No
Contact person: Mirjana Kelava
Telephone: 01/6320-233	(only name and surname of the contact person)
E-mail address: mkelava@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 31.03.2020.

ADP code Last day of the preceding business year At the reporting date of the current period 2 3 4 001 0 0 002 350.595.812 346.939.762 003 124.612.411 124.010.290 004 0 0 005 123.689.568 123.728.623 006 0 0 007 0 0 008 0 0 009 922.843 281.667 010 223.628.119 220.574.190 011 13.824.219 13.824.219 012 152.690.506 150.638.069 013 32.940.054 31.548.448 014 1.080.047 815.174 015 6.237.106 6.284.123 016 0 0 017 11.715.891 12.328.861 018 93.296 88.296 019 5.047.000 5.047.000 020 1.252.282 1.252.282 021 0 0 022 0 0 023 0 0 024 0 0 025 0 0 026 0 0 027 0 0 028 221.945 221.945 029 0 0 030 1.030.337 1.030.337 031 0 0 032 0 0 033 0 0 034 0 0 035 0 0 036 1.103.000 1.103.000 037 184.526.888 198.220.534 038 46.239.654 48.613.925 039 21.625.207 26.498.686 040 2.097.780 2.546.094 041 9.083.323 7.704.840 042 13.433.344 11.864.305 043 0 0 044 0 0 045 0 0 046 107.974.087 120.756.012 047 779.960 779.960 048 0 0 049 78.919.646 94.736.407 050 0 0 051 3.735.643 795.867 052 24.538.838 24.443.778 053 27.014.667 26.999.882 054 0 0 055 0 0 056 10.190.819 10.190.819 057 0 0 058 0 0 059 0 0 060 149.624 149.624 061 16.674.224 16.659.439 062 0 0 063 3.298.480 1.850.715 064 398.663 397.008 065 535.521.363 545.557.304 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)

OFF-BALANCE SHEET ITEMS

066 0 0

LIABILITIES
A) CAPITAL AND RESERVES (ADP 068 to	067	46.313.479	42.450.064
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	4.296.923	4.296.923
1 Legal reserves	071	3.496.923	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	54.675.895	53.925.333
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	-127.054.694	-142.090.572
1 Retained profit	082	0	0
2 Loss brought forward	083	127.054.694	142.090.572
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 085-086)	084	-16.044.266	-4.210.248
1 Profit for the business year	085	0	0
2 Loss for the business year	086	16.044.266	4.210.248
VIII MINORITY (NON-CONTROLLING) INTEREST	087	27.227.384	27.316.391
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	383.700.217	375.349.149
1 Liabilities to undertakings within the group	096	10.000.000	10.000.000
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	159.566.584	158.653.671
6 Liabilities to banks and other financial institutions	101	134.006.035	130.969.709
7 Liabilities for advance payments	102	0	0
8 Liabilities to suppliers	103	38.246.490	34.733.474
9 Liabilities for securities	104	29.879.082	29.155.027
10 Other long-term liabilities	105	0	0
11 Deferred tax liability	106	12.002.026	11.837.268
D) SHORT-TERM LIABILITIES (ADP 108 to 121)	107	101.845.405	123.694.122
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			0
participating interests	111	0
5 Liabilities for loans, deposits etc.	112	6.494.159	7.407.071
6 Liabilities to banks and other financial institutions	113	9.847.757	15.722.235
7 Liabilities for advance payments	114	4.403.875	11.368.586
8 Liabilities to suppliers	115	66.755.631	68.165.302
9 Liabilities for securities 10 Liabilities to employees	116	9.666.218	9.136.218 2.414.283
	117	2.209.571	9.279.832
11 Taxes, contributions and similar liabilities 12 Liabilities arising from the share in the result	118	2.246.635	0
13 Liabilities arising from fixed assets held for sale	119 120	0 0	0
14 Other short-term liabilities	121	221.559	200.595
E) ACCRUALS AND DEFERRED INCOME	122	3.662.262	4.063.969
F) TOTAL – LIABILITIES (ADP 067+088+095+107+122)	123	535.521.363	545.557.304
G) OFF-BALANCE SHEET ITEMS	124	0	0

for the period 01.01.2020 to 31.03.2020 STATEMENT OF PROFIT OR LOSS

in HRK

Submitter: Granolio d.d.
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	98.494.771	98.494.771	115.924.237	115.924.237
1 Income from sales with undertakings within the group 2 Income from sales (outside group)	126	0	0 94.903.050	0 113.028.959	0 113.028.959
3 Income from the use of own products, goods and services	127 128	94.903.050 688.045	688.045	152.821	152.821
4 Other operating income with undertakings within the group	129	0	0	0	0
5 Other operating income (outside the group)	130	2.903.676	2.903.676	2.742.457	2.742.457
II OPERATING EXPENSES (ADP	131	105.660.664	105.660.664	118.922.735	118.922.735
132+133+137+141+142+143+146+153)
1 Changes in inventories of work in progress and finished goods	132	-5.868.560	-5.868.560	1.009.663	1.009.663
2 Material costs (ADP 134 to 136) a) Costs of raw materials and consumables	133 134	91.528.710 72.084.631	91.528.710 72.084.631	100.015.116 80.694.803	100.015.116 80.694.803
b) Costs of goods sold	135	12.714.862	12.714.862	12.170.638	12.170.638
c) Other external costs	136	6.729.217	6.729.217	7.149.675	7.149.675
3 Staff costs (ADP 138 to 140)	137	9.507.035	9.507.035	9.396.938	9.396.938
a) Net salaries and wages	138	6.146.980	6.146.980	6.148.742	6.148.742
b) Tax and contributions from salary costs	139	2.092.278	2.092.278	2.048.188	2.048.188
c) Contributions on salaries	140	1.267.777	1.267.777	1.200.008	1.200.008
4 Depreciation	141	7.341.611	7.341.611	6.142.287	6.142.287
5 Other costs	142	1.527.897	1.527.897	1.454.006	1.454.006
6 Value adjustments (ADP 144+145)	143	17.767	17.767	0	0
a) fixed assets other than financial assets	144	0	0	0	0
b) current assets other than financial assets 7 Provisions (ADP 147 to 152)	145	17.767	17.767 0	0 0	0 0
a) Provisions for pensions, termination benefits and similar	146 147	0 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	1.606.204	1.606.204	904.725	904.725
III FINANCIAL INCOME (ADP 155 to 164)	154	57.514	57.514	210.063	210.063
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			0	0	0
to undertakings within the group	157	0
4 Other interest income from operations with undertakings within the	158	0	0	0	0
group
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	0	0	0	0
7 Other interest income	161	33.351	33.351	11.549	11.549
8 Exchange rate differences and other financial income	162	24.163	24.163	198.514	198.514
9 Unrealised gains (income) from financial assets	163	0	0	0	0
10 Other financial income	164	0	0	0	0
IV FINANCIAL EXPENSES (ADP 166 to 172)	165	1.344.220	1.344.220	1.332.808	1.332.808
1 Interest expenses and similar expenses with undertakings within the	166	0	0	174.115	174.115
group
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	1.249.307	1.249.307	767.363	767.363
4 Exchange rate differences and other expenses	169	94.786	94.786	351.170	351.170
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	127	127	40.160	40.160
V SHARE IN PROFIT FROM UNDERTAKINGS LINKED BY VRITUE	173	0	0	0	0
OF PARTICIPATING INTERESTS 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	98.552.285	98.552.285	116.134.300	116.134.300
X TOTAL EXPENDITURE (ADP 131+165+175 + 176)	178	107.004.884	107.004.884	120.255.543	120.255.543
XI PRE-TAX PROFIT OR LOSS (ADP 177-178)	179	-8.452.599	-8.452.599	-4.121.243	-4.121.243
1 Pre-tax profit (ADP 177-178)	180	0	0	0	0
2 Pre-tax loss (ADP 178-177)	181	-8.452.599	-8.452.599 0	-4.121.243 0	-4.121.243 0
XII INCOME TAX XIII PROFIT OR LOSS FOR THE PERIOD (ADP 179-182)	182 183	0 -8.452.599	-8.452.599	-4.121.243	-4.121.243
1 Profit for the period (ADP 179-182)	184	0	0	0	0
2 Loss for the period (ADP 182-179)	185	-8.452.599	-8.452.599	-4.121.243	-4.121.243

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
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	-8.452.602	-8.452.602	-4.121.243	-4.121.243
1 Pre-tax profit (ADP 192)	193	0	0	0	0
2 Pre-tax loss (ADP 192)	194	8.452.602	8.452.602	4.121.243	4.121.243
XVII INCOME TAX (ADP 182+189)	195	0	0	0	0
XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 192-195)	196	-8.452.602	-8.452.602	-4.121.243	-4.121.243
1 Profit for the period (ADP 192-195)	197	0	0	0	0
2 Loss for the period (ADP 195-192)	198	8.452.602	8.452.602	4.121.243	4.121.243
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	-8.452.602	-8.452.602	-4.121.243	-4.121.243
1 Attributable to owners of the parent	200	-8.257.745	-8.257.745	-4.210.248	-4.210.248
2 Attributable to minority (non-controlling) interest	201	-194.857	-194.857	89.005	89.005
STATEMENT OF OTHER COMPRHENSIVE INCOME (to be filled in by undertakings subject to IFRS)
I PROFIT OR LOSS FOR THE PERIOD	202	-8.452.602	-8.452.602	-4.121.243	-4.121.243
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	0	0	0	0
2 Changes in revaluation reserves of fixed tangible and intangible	205	0	0	0	0
assets 3 Profit or loss arising from subsequent measurement of financial
assets available for sale	206	0	0	0	0
4 Profit or loss arising from effective cash flow hedging	207	0	0	0	0
5 Profit or loss arising from effective hedge of a net investment in a	208	0	0	0	0
foreign operation 6 Share in other comprehensive income/loss of companies linked by
virtue of participating interests	209	0	0	0	0
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	0
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	-8.452.602	-8.452.602	-4.121.243	-4.121.243
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	-8.452.602	-8.452.602	-4.121.243	-4.121.243
1 Attributable to owners of the parent	216	-8.257.745	-8.257.745	-4.210.248	-4.210.248
2 Attributable to minority (non-controlling) interest	217	-194.857	-194.857	89.005	89.005

STATEMENT OF CASH FLOWS - indirect method for the period 01.01.2020. to 31.03.2020.

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	-8.452.601	-4.121.241
2 Adjustments (ADP 003 to 010): a) Depreciation	002	7.484.284	6.693.805 6.142.287
b) Gains and losses from sale and value adjustment of fixed tangible and	003	7.341.610
intangible assets	004	957.697	464.479
c) Gains and losses from sale and unrealised gains and losses and value	005	0	0
adjustment of financial assets
d) Interest and dividend income e) Interest expenses	006	-126.573	-11.549 929.262
f) Provisions	007 008	1.371.657 0	0
g) Exchange rate differences (unrealised)	009	0	0
h) Other adjustments for non-cash transactions and unrealised gains and
losses	010	-2.060.107	-830.674
I Cash flow increase or decrease before changes in working capital	011	-968.317	2.572.564
(ADP 001+002)
3 Changes in the working capital (ADP 013 to 016)	012	1.040.864	-2.265.351
a) Increase or decrease in short-term liabilities	013	1.785.662	12.873.355
b) Increase or decrease in short-term receivables	014	12.106.647	-12.777.935
c) Increase or decrease in inventories	015	-12.851.445	-2.360.771
d) Other increase or decrease in working capital II Cash from operations (ADP 011+012)	016 017	0 72.547	0 307.213
4 Interest paid	018	-1.214.007	-928.754
5 Income tax paid	019	0	0
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019)	020	-1.141.460	-621.541
Cash flow from investment activities
			0
1 Cash receipts from sales of fixed tangible and intangible assets	021	176.784
2 Cash receipts from sales of financial instruments	022	0	0
3 Interest received	023	456.096	45.214
4 Dividends received	024	0	0
5 Cash receipts from repayment of loans and deposits	025	2.989.765	14.785
6 Other cash receipts from investment activities	026	0	0
III Total cash receipts from investment activities (ADP 021 to 026)	027	3.622.645	59.999
1 Cash payments for the purchase of fixed tangible and intangible assets	028	-2.458.785	-2.145.207
2 Cash payments for the acquisition of financial instruments	029	0	0
3 Cash payments for loans and deposits for the period	030	-145.000	0
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	-2.603.785	-2.145.207
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033)	034	1.018.860	-2.085.208
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			3.735.099
4 Other cash receipts from financing activities	037 038	3.000.000 0	0
			3.735.099
V Total cash receipts from financing activities (ADP 035 to 038) 1 Cash payments for the repayment of credit principals, loans and other	039	3.000.000
borrowings and debt financial instruments	040	-6.367.742	-1.071.549
2 Cash payments for dividends	041	0	0
3 Cash payments for finance lease	042	-310.019	-90.909
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	-490.000	-1.313.657
VI Total cash payments from financing activities (ADP 040 to 044)	045	-7.167.761	-2.476.115
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045)	046	-4.167.761	1.258.984
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	-4.290.361	-1.447.765
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	049	10.339.675	3.298.480
F) CASH AND CASH EQUIVALENTS AT THE END OF THE
PERIOD(ADP 048+049)	050	6.049.314	1.850.715

STATEMENT OF CHANGES IN EQUITY

for the period from 1.1.2020 to	31.3.2020															in HRK
Item	ADP code	Initial (subscribed)	Capital reserves	Legal reserves	Reserves for	Treasury shares and holdings	Statutory reserves	Other reserves	Attributable to owners of the parent Revaluation	Fair value of financial assets	Cash flow hedge -	Hedge of a net investment in a	Retained profit / loss	Profit/loss for the	Total attributable to owners of the	Minority (non controlling)	Total capital and reserves
1	2	capital 3	4	5	treasury shares 6	(deductible item) 7	8	9	reserves 10	available for sale 11	effective portion 12	foreign operation - effective portion 13	brought forward 14	business year 15	parent 16 (3 to 6 - 7	interest 17	18 (16+17)
Previous period															+ 8 to 15)
1 Balance on the first day of the previous business year	01	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	02	0	0	0	0	0		0	0 0		0 0	0	0	0	0	0	0
3 Correction of errors 4 Balance on the first day of the previous business year (restated) (ADP 01 to 03)	03 04	0 19.016.430	0 84.195.807	327 408.554	0 800.000	0 0		0 0	0 0 0 57.678.142		0 0 0 0	0 0	0 -199.590.748	0 81.861.224	327 44.369.409	0 60.437.203	327 104.806.612
5 Profit/loss of the period	05	0	0	0	0	0		0	0 0		0 0	0	0	-8.452.601	-8.452.601	0	-8.452.601
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
7 Changes in revaluation reserves of fixed tangible and intangible assets	07	0	0	0	0	0		0	0 -745.958		0 0	0	745.958	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
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
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
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	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	0	0
13 Other changes in equity unrelated to owners	13	0	0	0	0	0		0	0 0		0 0	0	-9.706.006	0	-9.706.006	-32.506.701	-42.212.707
14 Tax on transactions recognised directly in equity	14	0	0	0	0	0		0	0 0		0 0	0	164.758	0	164.758	0	164.758
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
16 Increase in initial (subscribed) capital arising from the reinvestment of profit	16							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
18 Redemption of treasury shares/holdings 19 Payment of share in profit/dividend	18 19							0 0	0 0		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
21 Transfer to reserves according to the annual schedule	21							0	0		0 0	0	81.861.224	-81.861.224	0	0	0
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	0	0
22)	23	19.016.430	84.195.807	408.554	800.000	0		0	0 56.932.184		0 0	0	-126.524.814	-8.452.601	26.375.560	27.930.502	54.306.062
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	0	0	0	0		0	0 -745.958		0 0	0	-8.795.290	0	-9.541.248	-32.506.701	-42.047.949
II COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD (ADP 05+24)	25	0	0	0	0	0		0	0 -745.958		0 0	0	-8.795.290	-8.452.601	-17.993.849	-32.506.701	-50.500.550
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	81.861.224	-81.861.224	0	0	0
Current period
1 Balance on the first day of the current business year	27	19.016.430	84.195.807	3.496.923	800.000	0		0	0 54.675.895		0 0	0	-127.054.694	-16.044.266	19.086.095	27.227.384	46.313.479
2 Changes in accounting policies 3 Correction of errors	28 29	0 0	0 0	0 0	0 0	0 0		0 0	0 0 0 0		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	3.496.923	800.000	0		0	0 54.675.895		0 0	0	-127.054.694	-16.044.266	19.086.095	27.227.384	46.313.479
5 Profit/loss of the period	31	0	0	0	0	0		0	0 0		0 0	0	0	-4.210.248	-4.210.248	0	-4.210.248
6 Exchange rate differences from translation of foreign operations	32	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	33	0	0	0	0	0		0	0 -750.562		0 0	0	750.562	0	0	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	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	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
11 Share in other comprehensive income/loss of companies linked by virtue of participating interests	37	0	0	0	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	0	0	0
13 Other changes in equity unrelated to owners 14 Tax on transactions recognised directly in equity	39 40	0	0	0	0	0		0					93.070 164.757	0 0	93.070 164.757	89.007 0	182.077 164.757
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
16 Increase in initial (subscribed) capital arising from the reinvestment of profit	42												0	0	0	0	0
17 Increase in initial (subscribed) capital arising from the pre-bankruptcy settlement procedure	43												0	0	0	0	0
18 Redemption of treasury shares/holdings	44												0	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	0 0
21 Transfer to reserves according to the annual schedule	47	0	0	0	0	0		0	0 0		0 0	0	-16.044.266	16.044.266	0	0	0
22 Increase in reserves arising from the pre-bankruptcy settlement procedure	48												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 53.925.333		0 0	0	-142.090.571	-4.210.248	15.133.674	27.316.391	42.450.065
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 -750.562		0 0	0	1.008.389	0	257.827	89.007	346.834
(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 -750.562		0 0	0	1.008.389	-4.210.248	-3.952.421	89.007	-3.863.414
DIRECTLY IN EQUITY (ADP 41 to 48)	52	0	0	0	0	0		0	0 0		0 0	0	-16.044.266	16.044.266	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:01.01.2020. -31.03.2020.

Notes to financial statements for quarterly periods include:

The same accounting policies are applied when preparing the financial statements for the quarterly period as in the last annual financial statements.

Since the audit of the annual financial statements has not been finalized by the time the quarterly financial statements are published, there is a possibility that upon completion of the audit and publication of the annual financial statements, the quarterly reports will differ from those published.

Until March 2019, the Granolio group also included the companies Žitar d.o.o. and Žitar konto d.o.o.