Granolio d.d.

Quarterly Report • Oct 30, 2020

Unconsolidated financial results for the nine months period ended 30 September 2020 (unaudited)

General information on Granoliod.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

Early in 2020, a pandemic of the COVID-19 virus spread to the entire world. As the Company operates within the food industry, itis not expected that demand for the company's products would decrease. Company's operations will certainly be affected by interest rate movements, fiscal policy, purchasing power of the population and so on.

Since January 2020, the Company started repaying part of its liabilities to financial institutions, and the other part will become due from July 2020, in accordance with the pre-bankruptcy settlement.

Company's financial indicators for the nine months of 2020

	In thousands HRK
Granolio d.d.	1-9 2020	1-9 2019	change
Operating income	201.253	209.510	(8.257)	(4%)
Operating expenses	206.494	220.590	(14.096)	(6%)
EBIT	(5.241)	(11.080)	5.839	(53%)
EBIT margin	-3%	-5%
EBITDA	848	(3.124)	(2.276)	73%
EBITDA margin	0%	-1%
Net financial result	(1.163)	(4.769)	3.606	(76%)
Net result for the period	(6.404)	(15.849)	9.445	60%

*EBITDA= EBIT + depreciation + impairment expenses

In the nine-month period of 2020, a more favorable operating result was achieved compared to the same period of the previous year.

The net financial result represents the difference between financial income and financial expenses. Financial expenses consist mostly of interest on financial debts that are calculated in accordance with the pre-bankruptcy settlement.

In thousands HRK
Granolio d.d.	30.9.2020	31.12.2019	change
Net asset (capital and reserves)	35.116	41.025	(5.909)	(14%)
Total debt to financial institutions	317.185	320.372	(3.187)	(1%)
Cash and cash equivalents	316	2.710	(2.394)	(88%)
Loans given, deposits etc.*	24.619	24.644	(25)	(0%)
Net debt	292.250	293.018	(768)	(0%)
Net debt/EBITDA		(3.855,50)
EBITDA for the last 12 months	3.896	(76)	3.972	(5226%)

*Loans given, securities and deposits

The company's total debt is reduced by the value of debt repayment. At the beginning of 2020, the Company started repaying part of its liabilities to financial institutions in accordance with the prebankruptcy settlement.

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 revenues are approximately equal to revenues generated in the same period last year.

Employees

In the nine months period 2020the Company employed 174 employees based on man-hour basis (in the nine months period 2019: 159 employees).

Redemption of treasury shares

By the decision of the General Assembly of 9 June 2016, the Company transferred part of the profit for the business year 2015 in the amount of HRK 800 thousand to reserves for treasury shares.

Until the date of issuing the interim management report, the Company did not engage in repurchase activities

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 nine months period of 2020.

Annex 1
ISSUER'S GENERAL DATA
Reporting period:	1.1.2020	to	30.9.2020
Year:	2020
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
15989 Institution 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
www.granolio.hr Web address:
Number of employees (end of the reporting period): 174
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
Bookkeeping firm: No	(Yes/No)			No
Contact person: Mirjana Kelava			(name of the bookkeeping firm)
Telephone: 01/6320-233	(only name and surname of the contact person)
mkelava@granolio.hr E-mail address:
BDO Croatia d.o.o. Audit firm:
(name of the audit firm)

BALANCE SHEET

balance as at 30.09.2020

ADP code Last day of the preceding business year At the reporting date of the current period 2 3 4 001 0 0 002 334.232.722 331.604.423 003 123.718.667 121.892.426 004 0 0 005 123.020.500 121.892.426 006 0 0 007 0 0 008 0 0 009 698.167 0 010 138.910.272 138.108.214 011 8.684.216 8.684.216 012 108.103.601 105.147.199 013 7.761.619 10.174.680 014 268.460 015 0 0 016 0 0 017 9.384.080 9.409.855 018 93.296 77.264 019 4.615.000 4.615.000 020 71.603.783 71.603.783 021 70.427.762 70.427.762 022 0 0 023 0 0 024 0 0 025 0 0 026 0 0 027 0 0 028 145.684 145.684 029 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 0 0 037 127.465.224 134.586.234 038 20.383.369 21.909.416 039 7.054.842 7.057.936 040 83.677 100.351 041 1.972.395 2.609.418 042 11.272.455 12.141.711 043 0 0 044 0 0 045 0 0 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 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

in HRK

1 Receivables from undertakings within the group 047 9.668.968 6.806.093 2 Receivables from companies linked by virtue of participating 048 0 0 interests 3 Customer receivables 049 45.084.020 57.766.685 4 Receivables from employees and members of the undertaking 050 0 0 5 Receivables from government and other institutions 051 2.281.646 260.906 6 Other receivables 052 22.838.497 23.053.992 III CURRENT FINANCIAL ASSETS (ADP 054 to 062) 053 24.498.478 24.473.452 1 Investments in holdings (shares) of undertakings within the group 054 0 0 2 Investments in other securities of undertakings within the group 0 0 055 3 Loans, deposits, etc. to undertakings within the group 056 10.374.630 10.304.651 4 Investments in holdings (shares) of companies linked by virtue of 057 0 0 participating interests 5 Investment in other securities of companies linked by virtue of 058 0 0 participating interests 6 Loans, deposits etc. to companies linked by virtue of participating 0 0 059 interests 7 Investments in securities 060 149.624 149.623 8 Loans, deposits, etc. given 061 13.974.224 14.019.178 9 Other financial assets 062 0 IV CASH AT BANK AND IN HAND 063 2.710.246 315.690 D ) PREPAID EXPENSES AND ACCRUED INCOME 064 390.423 379.065 E) TOTAL ASSETS (ADP 001+002+037+064) 065 462.088.369 466.569.722 OFF-BALANCE SHEET ITEMS 066 9.163.871 10.181.796 LIABILITIES A) CAPITAL AND RESERVES (ADP 068 to 067 41.025.022 35.115.606 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 52.424.210 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- 081 -107.675.312 -118.414.076 083) 1 Retained profit 082 0 0 2 Loss brought forward 083 107.675.312 118.414.076 VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 085-086) 084 -13.484.721 -6.403.688 1 Profit for the business year 085 0 2 Loss for the business year 086 13.484.721 6.403.688 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 089 0 0 obligations 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) 095 350.139.554 328.962.222 1 Liabilities to undertakings within the group 096 0 0	II RECEIVABLES (ADP 047 to 052)	046	79.873.131	87.887.676

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	154.246.600
6 Liabilities to banks and other financial institutions	101	113.796.135	109.995.886
7 Liabilities for advance payments	102	0	0
8 Liabilities to suppliers	103	34.895.727	25.505.065
9 Liabilities for securities	104	29.879.082	27.706.918
10 Other long-term liabilities	105	0	0
11 Deferred tax liability	106	12.002.026	11.507.753
D) SHORT-TERM LIABILITIES (ADP 108 to 121)	107	70.731.895	102.386.764
1 Liabilities to undertakings within the group	108	54.341	51.937
2 Liabilities for loans, deposits, etc. of undertakings within the group	109	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	3.494.159	8.814.143
6 Liabilities to banks and other financial institutions	113	4.084.222	7.800.504
7 Liabilities for advance payments	114	4.403.875	595.253
8 Liabilities to suppliers	115	47.183.499	72.770.970
9 Liabilities for securities	116	9.666.218	8.621.411
10 Liabilities to employees	117	1.112.640	1.049.361
11 Taxes, contributions and similar liabilities	118	525.372	2.207.373
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	207.569	475.812
E) ACCRUALS AND DEFERRED INCOME	122	191.898	105.130
F) TOTAL – LIABILITIES (ADP 067+088+095+107+122)	123	462.088.369	466.569.722
G) OFF-BALANCE SHEET ITEMS	124	9.163.871	10.181.796

for the period 01.01.2020 to 30.09.2020 STATEMENT OF PROFIT OR LOSS

in HRK

Submitter: Granolio d.d.
Item	ADP code	Same period of the previous year		Current period
1	2	Cumulative 3	Quarter 4	Cumulative 5	Quarter 6
I OPERATING INCOME (ADP 126 to 130)	125	209.510.298	78.803.339	201.252.821	70.249.689
1 Income from sales with undertakings within the group 2 Income from sales (outside group)	126 127	3.887.703 202.607.259	938.712 77.338.481	3.180.600 196.038.364	801.801 68.539.354
3 Income from the use of own products, goods and services	128	23.285	5.051	13.782	10.578
4 Other operating income with undertakings within the group 5 Other operating income (outside the group)	129 130	2.992.051	0 521.095	2.020.075	0 897.956
II OPERATING EXPENSES (ADP 132+133+137+141+142+143+146+153)	131	220.590.384	78.137.258	206.493.950	69.357.032
1 Changes in inventories of work in progress and finished goods	132	-873.869	-1.048.622	-738.716	6.965
2 Material costs (ADP 134 to 136) a) Costs of raw materials and consumables	133 134	197.701.550 142.407.138	71.242.225 50.394.620	183.893.647 130.672.689	61.379.741 40.199.297
b) Costs of goods sold	135	40.684.982	14.969.508	38.938.666	15.885.146
c) Other external costs 3 Staff costs (ADP 138 to 140)	136 137	14.609.430 13.092.147	5.878.097 4.492.670	14.282.292 14.124.083	5.295.298 4.622.329
a) Net salaries and wages	138	8.328.695	2.882.255	9.200.523	3.011.513
b) Tax and contributions from salary costs c) Contributions on salaries	139 140	3.126.357 1.637.095	1.054.360 556.055	3.222.200 1.701.360	1.059.475 551.341
4 Depreciation	141	7.955.619	2.663.620	6.089.305	1.792.720
5 Other costs 6 Value adjustments (ADP 144+145)	142 143	1.669.334 0	543.143 0	1.756.855 0	672.008 0
a) fixed assets other than financial assets b) current assets other than financial assets	144 145	0 0	0 0	0 0	0 0
7 Provisions (ADP 147 to 152)	146	0	0	0	0
a) Provisions for pensions, termination benefits and similar obligations b) Provisions for tax liabilities	147 148	0 0	0 0	0 0	0 0
c) Provisions for ongoing legal cases	149	0	0	0	0
d) Provisions for renewal of natural resources e) Provisions for warranty obligations	150 151	0 0	0 0	0 0	0 0
f) Other provisions	152	0	0	0	0
8 Other operating expenses III FINANCIAL INCOME (ADP 155 to 164)	153 154	1.045.603 1.200.043	244.222 293.774	1.368.776 367.665	883.269 30.530
1 Income from investments in holdings (shares) of undertakings within	155	0	0	0	0
the group 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	157	335.158	99.636	5.675	2.601
undertakings within the group 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 7 Other interest income	160	1.017	0	0	0
8 Exchange rate differences and other financial income	161 162	606.536 33.830	146.443 12.010	158.617 203.373	3 27.926
9 Unrealised gains (income) from financial assets 10 Other financial income	163 164	0 223.502	0 35.685	0 0	0 0
IV FINANCIAL EXPENSES (ADP 166 to 172)	165	5.968.926	4.546.466	1.530.224	285.190
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	167	0	0	0	0
undertakings within the group 3 Interest expenses and similar expenses	168	2.014.534	689.371	1.182.121	239.376
4 Exchange rate differences and other expenses	169	84.604	12.562	307.194	45.125
5 Unrealised losses (expenses) from financial assets 6 Value adjustments of financial assets (net)	170 171	0 0	0 0	0 0	0 0
7 Other financial expenses	172	3.869.788	3.844.533	40.909	689
V SHARE IN PROFIT FROM UNDERTAKINGS LINKED BY VRITUE OF PARTICIPATING INTERESTS	173	0	0	0	0
VI SHARE IN PROFIT FROM JOINT VENTURES VII SHARE IN LOSS OF COMPANIES LINKED BY VIRTUE OF	174	0	0	0	0
PARTICIPATING INTEREST	175	0	0	0	0
VIII SHARE IN LOSS OF JOINT VENTURES IX TOTAL INCOME (ADP 125+154+173 + 174)	176 177	0 210.710.341	0 79.097.113	0 201.620.486	0 70.280.219
X TOTAL EXPENDITURE (ADP 131+165+175 + 176)	178	226.559.310	82.683.724	208.024.174	69.642.222
XI PRE-TAX PROFIT OR LOSS (ADP 177-178) 1 Pre-tax profit (ADP 177-178)	179 180	-15.848.969 0	-3.586.611 0	-6.403.688 0	637.997 637.997
2 Pre-tax loss (ADP 178-177)	181	-15.848.969	-3.586.611	-6.403.688	0
XII INCOME TAX XIII PROFIT OR LOSS FOR THE PERIOD (ADP 179-182)	182 183	0 -15.848.969	0 -3.586.611	0 -6.403.688	0 637.997
1 Profit for the period (ADP 179-182)	184	0	0	0	637.997
2 Loss for the period (ADP 182-179) DISCONTINUED OPERATIONS (to be filled in by undertakings subject to IFRS only with discontinued operations)	185	-15.848.969	-3.586.611	-6.403.688	0
XIV PRE-TAX PROFIT OR LOSS OF DISCONTINUED OPERATIONS (ADP 187-188)	186	0	0	0	0
1 Pre-tax profit from discontinued operations	187	0	0	0	0
2 Pre-tax loss on discontinued operations XV INCOME TAX OF DISCONTINUED OPERATIONS	188 189	0 0	0 0	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) TOTAL OPERATIONS (to be filled in only by undertakings subject to IFRS with discontinued operations)	191	0	0	0	0
XVI PRE-TAX PROFIT OR LOSS (ADP 179+186)	192	-12.140.007	-834.780	-7.041.685	-2.528.815
1 Pre-tax profit (ADP 192) 2 Pre-tax loss (ADP 192)	193 194	0 15.848.969	0 3.586.611	0 6.403.688	637.997 0
XVII INCOME TAX (ADP 182+189) XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 192-195)	195	2.062.599	0	0	0
1 Profit for the period (ADP 192-195)	196 197	-14.202.606 0	-834.780 0	-7.041.685 0	-2.528.815 0
2 Loss for the period (ADP 195-192) APPENDIX to the P&L (to be filled in by undertakings that draw up consolidated annual financial statements)	198	14.202.606	834.780	7.041.685	2.528.815
XIX PROFIT OR LOSS FOR THE PERIOD (ADP 200+201)	199	0	0	0	0
1 Attributable to owners of the parent 2 Attributable to minority (non-controlling) interest	200 201	0 0	0 0	0 0	0 0
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	-15.848.969	-3.586.611	-6.403.688	637.997
(ADP 204 to 211)	203	0	0	0	0
1 Exchange rate differences from translation of foreign operations 2 Changes in revaluation reserves of fixed tangible and intangible	204 205	0 0	0 0	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 foreign operation	208	0	0	0	0
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 III TAX ON OTHER COMPREHENSIVE INCOME FOR THE PERIOD	211 212	0 0	0 0	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	-15.848.969	-3.586.611	-6.403.688	637.997
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

2 Attributable to minority (non-controlling) interest

217 0 0 0 0

STATEMENT OF CASH FLOWS - indirect method for the period 01.01.2020 to 30.09.2020

ADP code Same period of the previous year Current period 2 3 4 001 -15.848.969 -6.403.688 002 11.191.309 7.219.306 003 7.955.618 6.089.305 004 -8.800 365.453 005 3.605.759 0 006 -942.711 -164.292 007 2.014.534 1.182.121 008 0 0 009 862 4.578 010 -1.433.953 -257.859 011 -4.657.660 815.618 012 20.752.662 4.669.446 013 30.962.073 14.002.807 014 -1.027.050 -8.065.173 015 -9.182.361 -1.268.188 016 0 0 017 16.095.002 5.485.064 018 -1.838.576 -1.215.120 019 0 0 020 14.256.426 4.269.944 021 0 0 022 0 0 023 969.488 587.051 024 025 7.761.344 2.203.724 026 11.268.611 999.031 027 19.999.443 3.789.806 028 -2.714.934 -2.728.803 029 0 0 030 -26.816.162 -2.108.520 031 0 0 032 0 -1.069.031 033 -29.531.096 -5.906.354 034 -9.531.653 -2.116.548 035 0 0 036 0 0 037 2.000.000 0 038 0 0 039 2.000.000 0 040 -7.260.000 -996.948 041 0 0 042 -446.661 -334.032 043 0 044 -1.590.000 -3.216.971 045 -9.296.661 -4.547.951 046 -7.296.661 -4.547.951 047 0 0 048 -2.571.888 -2.394.555 049 3.574.350 2.710.246 050 1.002.462 315.691 4 Interest paid Submitter: Granolio d.d. a) Increase or decrease in short-term liabilities b) Increase or decrease in short-term receivables c) Increase or decrease in inventories h) Other adjustments for non-cash transactions and unrealised gains and losses I Cash flow increase or decrease before changes in working capital (ADP 001+002) 3 Changes in the working capital (ADP 013 to 016) Item 1 d) Interest and dividend income e) Interest expenses f) Provisions g) Exchange rate differences (unrealised) c) Gains and losses from sale and unrealised gains and losses and value adjustment of financial assets Cash flow from operating activities 1 Pre-tax profit 2 Adjustments (ADP 003 to 010): a) Depreciation b) Gains and losses from sale and value adjustment of fixed tangible and intangible assets Cash flow from investment activities d) Other increase or decrease in working capital II Cash from operations (ADP 011+012) 2 Cash payments for the acquisition of financial instruments V Total cash receipts from financing activities (ADP 035 to 038) 4 Acquisition of a subsidiary, net of cash acquired 5 Other cash payments from investment activities III Total cash receipts from investment activities (ADP 021 to 026) 1 Cash payments for the purchase of fixed tangible and intangible assets 3 Cash payments for loans and deposits for the period 5 Income tax paid A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019) F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD(ADP 048+049) 1 Cash payments for the repayment of credit principals, loans and other borrowings and debt financial instruments 2 Cash payments for dividends 1 Cash receipts from sales of fixed tangible and intangible assets 2 Cash receipts from sales of financial instruments 3 Interest received 4 Dividends received 5 Cash receipts from repayment of loans and deposits 6 Other cash receipts from investment activities C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045) 1 Unrealised exchange rate differences in respect of cash and cash equivalents D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP 020+034+046+047) E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 3 Cash payments for finance lease 4 Cash payments for the redemption of treasury shares and decrease in initial (subscribed) capital 5 Other cash payments from financing activities VI Total cash payments from financing activities (ADP 040 to 044) IV Total cash payments from investment activities (ADP 028 to 032) B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033) Cash flow from financing activities 1 Cash receipts from the increase in initial (subscribed) capital 2 Cash receipts from the issue of equity financial instruments and debt financial instruments 3 Cash receipts from credit principals, loans and other borrowings 4 Other cash receipts from financing activities

in HRK

STATEMENT OF CHANGES IN EQUITY

for the period from 1.1.2020 to	30.9.2020													in HRK
									Attributable to owners of the parent
	ADP					Treasury shares and				Fair value of		Hedge of a net	Retained profit /		Total attributable to	Minority (non	Total capital and
Item	code	Initial (subscribed) capital	Capital reserves	Legal reserves	Reserves for treasury shares	holdings (deductible	Statutory reserves Other reserves		Revaluation reserves	financial assets	Cash flow hedge - effective portion	investment in a foreign operation -	loss brought	Profit/loss for the business year	owners of the	controlling) interest	reserves
						item)				available for sale		effective portion	forward		parent
1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16 (3 to 6 - 7	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	408.554	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	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	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
03)	04	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
5 Profit/loss of the period	05	0	0	0	0	0	0	0	0	0	0	0	0	-15.848.969	-15.848.969	0	-15.848.969
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	-2.251.685	0	0	0	2.251.685	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	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	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	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 13 Other changes in equity unrelated to owners	12 13	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 29.433	0 0	0 29.433	0 0	0 29.433
14 Tax on transactions recognised directly in equity	14	0	0	0	0	0	0	0	0	0	0	0	493.262	0	493.262	0	493.262
15 Increase/decrease in initial (subscribed) capital (other than from reinvesting profit	15	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
and other than arising from the pre-bankruptcy settlement procedure)
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 21 Transfer to reserves according to the annual schedule	20 21	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	22	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
23 Balance on the last day of the previous business year reporting period (04 to 22)	23	19.016.430	84.195.807	3.496.923	800.000	0	0	0	55.426.457	0	0	0	-107.932.611	-15.848.969	39.154.037	0	39.154.037
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	-2.251.685	0	0	0	2.774.380	0	522.695	0	522.695
II COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD (ADP
05+24)	25	0	0	0	0	0	0	0	-2.251.685	0	0	0	2.774.380	-15.848.969	-15.326.274	0	-15.326.274
III TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD RECOGNISED
DIRECTLY IN EQUITY (ADP 15 to 22)	26	0	0	3.088.369	0	0	0	0	0	0	0	0	58.679.022	-61.767.391	0	0	0
Current period 1 Balance on the first day of the current business year
2 Changes in accounting policies	27 28	19.016.430 0	84.195.807 0	3.496.923 0	800.000 0	0 0	0 0	0 0	54.675.895 0	0 0	0 0	0 0	-107.016.282 0	-14.143.751 0	41.025.022 0	0 0	41.025.022 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	3.496.923	800.000	0	0	0	54.675.895	0	0	0	-107.016.282	-14.143.751	41.025.022	0	41.025.022
5 Profit/loss of the period	31	0	0	0	0	0	0	0	0	0	0	0	0	-6.403.688	-6.403.688	0	-6.403.688
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	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	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 participating interests	37	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	38	0	0	0	0	0	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	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 494.272	0 0	0 494.272	0 0	0 494.272
15 Increase/decrease in initial (subscribed) capital (other than from reinvesting profit	41	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
and other than arising from the pre-bankruptcy settlement procedure)
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	43	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
procedure 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	46	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	47 48	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	14.143.751 0	-14.143.751 0	0 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	52.424.210	0	0	0	-90.126.574	-34.691.190	35.115.606	0	35.115.606
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	2.745.957	0	494.272	0	494.272
(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	2.745.957	-6.403.688	-5.909.416	0	-5.909.416
III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED	52	0	0	0	0	0	0	0	0	0	0	0	14.143.751	-14.143.751	0	0	0
DIRECTLY IN EQUITY (ADP 41 to 48)

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.-30.09.2020

Notes to the financial statements for the semi-annual reporting periods include:

The same accounting policies are applied in preparing the financial statements for the half-year period as in the most recent annual financial statements.