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Span d.d.

Interim / Quarterly Report Oct 31, 2022

2101_10-q_2022-10-31_ea956bb8-c62e-43e8-bc5b-60c08e3b5793.pdf

Interim / Quarterly Report

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Unaudited Financial Statements of Span Group and Span d.d.

JANUARY - SEPTEMBER 2022

Contents

1. Management Interim Report – Management Report 3
1.1. Statement of Marijan Pongrac, member of the Management
Board, Technology Director 4
1.2. Corporate events 6
1.2.1. Incorporation of Span Cyber Security Center 6
1.2.2. Release of own shares – Remuneration program 6
1.3. People and the community 6
1.3.1. HR initiatives 6
1.3.1.1. Span Management Academy – We build new generation managers 6
1.3.1.2. Span Academy – IT career level up for students of technical faculties 8
1.3.2. Corporate social responsibility – ESG World Summit and Grit Awards 9
1.4. Business events, awards, recognitions 10
1.4.1. Span Cyber Security Center Opening 10
1.4.2. Licenses for the use of Microsoft software products and
services – public tender 12
1.4.3. Microsoft advanced specializations 12
1.4.4. HP Power Partner status 12
1.4.5. Span CyberGRX Security Risk Assessment 13
1.4.6. Microsoft Enterprise Skilling Initiative 13
2. Financial indicators for nine months of 2022 15
2.1. Operating revenue, EBITDA, and net profit of Span Group 16
2.2. Operating revenue, EBITDA, and net profit of Span d.d. 16
2.3. Key features of the period – nine months of 2022 17
2.4. Revenues by segments 19
2.5. Revenues by geography 21
2.6. Balance Sheet 21
2.7. Cash flow 24
2.8. Operation of TOV Span Ukraine 24
3. Financial statements of Span Group and Span d.d. 27
4. Notes 40
4.1. Notes accompanying financial statements 40

UNAUDITED FINANCIAL STATEMENTS OF SPAN GROUP AND SPAN D.D. / JANUARY − SEPTEMBER 2022

5. Statement on responsibility for compiling a report in the observed period 41

1.

Management Interim Report – Management Report

1.1. Statement of Marijan Pongrac, member of the Management Board, Technology Director

History will remember 2022 as a year of great instability. The two-year pandemic has not been over yet, and a new instability started - Russia set out on occupying Ukraine. Military activities are followed by activities in the cyber world. The cyber instability is not limited to the area of the Russian occupation; cyber attacks are also under way in other parts of the world. Some are sponsored by authorities and intended for destabilizing countries, while others are based on sheer criminal reasons and aimed at data theft and blackmailing for financial gains.

Some of the most renowned companies such as Cisco[1] and Uber[2] have also been targeted for cyber attacks this year. These are companies that certainly do not lack resources for proactive protection, however, they have obviously not implemented it well enough. In addition to companies, countries located in our comparative proximity, Albania[3], Montenegro, Estonia and Finland[4], have also been attacked. All committed attacks were successful and inflicted real damage to the attacked organisations, mostly governmental.

I have mentioned all this in order to explain why Span has made the decision to establish the Span Cyber Security Center. In the past ten years, values have been digitalized, and criminals have, too. The number of cyber attacks has grown continuously and a need for expert and quality staff is increasing. Regretfully, society chronically lacks educated and expert staff. According to some research, currently, there is a lack of 200,000 cyber experts in Europe and that number is increasing day by day. A higher number of people should be educated and their awareness should be raised so that they could recognize cyber dangers and know how to respond to them.

Ensuring the best possible software for cyber protection and believing that the system will function on its own is not enough. Any cyber attack has an army of cyber criminals - real people behind it. High quality software will help us recognize an attack and alarm our experts who will counter the threat. However, when an enemy comes to one's house, expelling them out is not simple at all - let alone the reputation damage. This requires a whole army on our side. An army of experts that the market, not only Croatia's but that of the whole Europe and the whole Western world, lacks.

It is this lack of professionals in the market that changes the customer and service provider paradigm. Companies that can provide the necessary services to a customer have restricted capacity and are exceptionally in demand nowadays. In the past years, it has become usual that companies pay

in advance for a place in the incident response list of cybersec companies so that they could count on their help at a critical point. If they do not book their place in the list, they can hardly buy the necessary service at the time they need it, and no company has sufficient resources internally to expel the attacker and repair the damage.

The Span Cyber Security Center wants to give its contribution to raising awareness of cyber danger through expert education and consulting intended for technicians, awareness training for other groups of employees, and Table Top exercises for the management. Expert education covers both defense and attack techniques because good defense can be learnt only through knowledge of the attack technique. Hence Span's slogan #NotOnlyDefense.

Other success we achieved in the third quarter is also worth mentioning; Span satisfied the Tier 2 assessment, proving the compliance of the company with the industry standards and security protocols. The assessment was made by Cyber GRX, an independent company for cyber risk assessment, using sophisticated analysis of collected data on the Span system.

In late September, Microsoft introduced a change in partners' certifications[5]. As of September 30th, the Microsoft Partner Network Silver/Gold competencies became deprecated and replaced by a new Microsoft Solution Partner program.

I would like to emphasize that Span is ready for this change in the Microsoft partner network and is entering the following period with as many as five of the possible six Microsoft Solution Partner statuses, and those are Infrastructure (Azure), Security, Modern Work, Digital & App Innovation (Azure), Data & AI (Azure). Moreover, we are continuing our development with 12 Advanced specializations that confirm our deep technical expertise.

Marijan Pongrac member of the Management Board, Technology Director

[1] Cisco Talos Intelligence Group - Comprehensive Threat Intelligence: Cisco Talos shares insights related to recent cyber attack on Cisco

1.2. Corporate Events

1.2.1. Incorporation of Span Cyber Security Center

On July 21st, 2022, the Commercial Court in Zagreb issued a decision on the registration of a company named Span Cyber Security Centre limited liability company for services and consulting, OIB: 88052917618, with the registered office in Zagreb and with the share capital amounting to HRK 1,500,000.00. Span d.d. is the founder and the only member of the company. The decision was published on July 22nd, 2022.

The Center was officially opened on September 6th, 2022 in cooperation with Israel's Cybergym and is the only of its kind in this part of Europe. The Span Cyber Security Center brings the most upto-date worldwide practices and experience to Croatia with the aim of communicating knowledge and empowering the business community to respond as efficiently as possible to the ever-present and increasingly sophisticated cyber threats that represent huge risks to businesses. Cybergym is a leading Israel's cyber security company that bases its expertise on its own experience.

1.2.2. Release of own shares – Remuneration program

Span d.d. released 375 and 71 own shares on August 18th, 2022 and August 26th, 2022 respectively, based on the Share Buy-Back Program adopted at the Span Management meeting on January 14th, 2022, in order to offer the shares to employees of Span d.d. and affiliated companies for the purpose of remuneration.

Before the mentioned release, Span d.d. owned 17,245 own shares representing 0.8798% of the share capital, and after the release, it owns in total of 16,799 shares, or 0.8571% of the share capital. The share capital of Span d.d. amounts to HRK 19,600,000.00 and is divided in 1,960,000 ordinary registered shares with a nominal value of HRK 10.00, with the symbol SPAN-R-A and the ISIN code HRSPANRA0007.

1.3. People and the community

1.3.1. HR initiatives

1.3.1.1. Span Management Academy - We build new generation managers

The Span Management Academy is the first Competency development program for employees recognized as potentials for assuming higher levels of responsibility in the management of projects, processes, users, and employees. The first generation of students of Span Management Academy completed its additional education in the third quarter of 2022. Within this internally designed, structured program that lasts nine months, employees are taught about competency development tools in accordance with the strategic needs and goals of Span.

Each student gets his own mentor, mostly Span's directors and senior managers who then monitor the student throughout the program. The mentors further help them assume demanding tasks, new work roles, and future projects.

The Span Management Academy program consists of three tracks:

  1. Workshops related to the development of business skills (Span business model, finance, project management, security…)

  2. Workshops related to the development of people skills (situational leadership, managing change, personal performance…)

  3. mentoring (experience) track: led by a mentor (who is a member of Span Management), supporting students in applying what they learned in actual, daily business situations.

This structured nine-month "talent program" has encountered great interest and response within Span, and comments of students of the Span Management Academy are extremely positive. We regularly sought feedback to the workshops and mentoring from our Academy attendees, and the average grade for people track was 4,83 out of 5, for business track 4,89, and for mentoring, satisfaction with the mentor and the whole process was 100%.

Some of the comments are presented below:

Business track:

"The workshop was perfect, the lecturers were excellent and helped us master difficult topics in a simple and unambiguous way."

"I encounter strategies through projects, but I have never had a chance to hear how you come to a strategy. This was really brilliant, thank you."

People track:

"I most liked advice I can use at my job and in the development of both myself and other people." "The contents of the workshop were very relevant, and the newly acquired knowledge is easily applicable. The lecturer was also excellent."

Mentoring:

"It is great that he shares his experience by giving you space to decide how you would do something, either by following his advice, or doing something your own way. He does not give you a ready-made

solution but guidance/advice, so you are the one who develops and decides."

"She understands, listens, gives good advice and guidance - sees three steps ahead."

Out of 26 students, as many as 15 assumed leadership roles during the program, which speaks clearly about the quality and usefulness of this form of professional training and development of employees.

1.3.1.2. Span Academy – IT career level up for students of technical faculties

Back in 2015 when we launched our first internship program for students of technical faculties - Span Academy, we were fully aware of the future ahead of us and the need to develop and train additional IT experts.

Intensive cooperation with the academic and IT community, but also promotions and several student events during the first half of the year resulted in noticeably high interest in our Span Academy summer internship program. More than 350 candidates applied, and among them, we had the opportunity to select those who fit the most according to their ambition, knowledge, and values. They were the ones who had the opportunity to learn from the best professionals in Span.

Thus, the third quarter went on in the sign of our summer Span Academy internship. This year, we officially marked the seventh generation of the Span Infrastructure (Cloud & Security) and the fifth generation of Span Development Academy attendees.

For almost two months, 54 female and male students, from more than 10 faculties across Croatia, spent their summer in Span. These numbers are a direct indicator of the development and improvement of our program and cooperation with the academic community.

The Infrastructure (Cloud & Security) track was officially launched in July and lasted for nine weeks while the Development track started in August and lasted for five weeks. Both tracks included lectures and mentoring by Span professionals. The idea was for students of each track to get the best possible insight into the core elements of IT systems, or the development of applications.

This year within the Infrastructure track we paid special attention to the cyber security lectures, as IT security is one of the fundamental pillars of the Span. The data we collected from the students themselves encourage us to additionally develop security track of Span Academy program in the future. As much as 60 percent of students consider cyber security more attractive than they thought it was, and 20 percent have strong interest in the security area and consider it as an option for their professional development.

At the end of the Academy, students were given a final project assignment. That way they could show their peers, mentors, and members of Span management what they learned during their

internship program.

During the internship, we regularly sought feedback from students concerning the program, lectures, and their mentors. Although the tracks, lectures, and mentors are quite different, more than 70 percent of the students evaluated their satisfaction with the program as very satisfied and satisfied.

What makes us especially satisfied is the fact that more than half of the students are continuing their career path in Span, and here are their comments below:

"There are no words to express my gratitude. Kudos to all of you who organized and took part in this, because for me, this has been the best summer in the past 7 years."

"As a company, Span really surprised me because I did not expect such a friendly and welcoming atmosphere. I have said on many occasions that in these 5 weeks of the Academy, I got the feeling that I had worked in Span for 5 years. Besides, I like the technology we worked with and I would really like to work in Span."

"Span will remain in my heart forever . This is my first practice, and hopefully not my last one. I have never known how it feels to work in a company, you always have in mind some bureaucratic relationship between the company and its employees because most people do not like their job. However, I loved every day because the people were great, the atmosphere invincible, and along with that, they all had a lot of expertise, and when they needed to work, they worked. I like sitting down and working until something is done, and I got that impression from people at Span as well. Certainly, I would like to work in Span, I think you have destroyed all my other company choices . But, joking aside, I would really like to stay because I believe that my effort would be appreciated, and in addition, the team is perfect!".

1.3.2. Corporate social responsibility – ESG World Summit and Grit Awards

Our effort in the area of responsible and sustainable environmental and social management has also been recognized globally. At the recent international ESG Summit & GRIT Awards taking place in Singapore, Span was handed a recognition for the company with the largest contribution to the

UN 8th Sustainable Development Goal – the promotion of decent work and economic growth. Span is the only Croatian and regional company that was awarded at this event for its effort related to sustainable development and we are incredibly proud of that.

We went to the ESG Summit & GRIT Awards upon an invitation of the International Institute for Climate Action (IICA), which supported our nomination. This gathering of international experts in Singapore was

organized so as to spread and deepen sustainable influences with a special focus on decarbonization, carbon neutrality and innovation in the production of food, and was organized by Corpstage, an international platform for sustainability and ESG Research Fund.

The whole system of remuneration is based on the GRIT model that represents growth, resistance, innovation and excellence as the foundations of solid business operation in promoting trends of sustainable development trends, and on behalf of Span, the award was received by Iva Gredelj, Board Office Manager and ESG Ambassador.

"We have cherished the sustainable operation principles for a long time, we have the technological expertise and we can influence raising awareness and initiating changes among our clients towards sustainable operation. When the areas of action are involved, GRIT awards are granted in line with 17 UN Sustainable Development Goals, focused on directing the operation of companies in a way that contributes to the improvement of the community, environmental preservation and prosperity of the society. As a socially responsible company, we are happy to be recognised in the promotion of decent work and economic growth." – said Iva Gredelj.

Span is only one among the companies that prioritized the relevance of the socially responsible operation and sustainable management in a timely manner. The ESG World Summit is an international event gathering companies of this kind. And not only them. This is a place where ideas, projects and systematic effort towards rescuing the planet and smart resource management are presented and advocated by the most progressive elements of the society, entrepreneurs, scientists, inventors, technology pioneers and visionaries, philanthropists, representatives of sustainable and green cities and counties, associations implementing revolutionary changes in using raw materials and many others. At the same time, it is an opportunity to improve the sustainability goals through spreading awareness of the importance of ESG protocol for organizations, as a platform for those who have taken significant steps in this direction where they can share their success stories and lessons learnt.

1.4. Business events, awards, recognitions

1.4.1. Span Cyber Security Center Opening

We opened the Span Cyber Security Centre in cooperation with Israeli Cybergym on September 6th 2022. The Center brings the most up-to-date world practices and experience to Croatia with the aim of communicating knowledge and empowering the business community to respond as efficiently as possible to the ever-present and increasingly sophisticated cyber threats that represent huge risks to business operation.

The Center offers educations, trainings and consulting services intended for employees in the public and private sector, and the program is tailored to specific needs of the participants or the

company and includes active participation in realistic situations, where professional hackers simulate real attacks on their business systems.

Our mission is to offer exceptional experience of cyber-training and reinforce cyber competencies of all the employees in the or-

ganization; from IT and security experts to administrative employees and management. Cyber-training includes experience of a real attack on systems that mimic the existing IT infrastructure of an organization.

UNAUDITED FINANCIAL STATEMENTS OF SPAN GROUP AND SPAN D.D. / JANUARY − SEPTEMBER 2022

11

Maximize The Human Factor We empower the most critical, yet vulnerable part of your security - your people

Teamwork Under Fire In our realistic environment, your teams maximize their strengths, build effective teamwork, and work together to defend the organization

Live Attacks Hackers run complex attack scenarios in real time, sharing their logic & knowledge with your teams

Tailored for You Training programs to meet your exact needs and security readiness

"Cybernetic attacks don't happen to someone else, and that's a fact we all have to be aware of," said Nikola Dujmović, President of the Management Board of Span. "Education is extremely important, and in addition to acquiring knowledge to protect yourself, it is also important to know how the opposite side operates, how the attackers think and act. This is precisely why we chose Cybergym as a partner – their know-how is based on real experience."

As many as 64 percent of companies in the world have been exposed to at least one form of cyberattack, and 95 percent of such attacks have been caused by the human factor. People are one of the main links in the organization's defense against cybercrime, therefore it is crucial that employees are viewed as a whole and it is imperative that all levels of employees – from IT professionals and ma-

nagement to everyone else in the system – are adequately educated to reduce the organization's vulnerability points to a minimum.

Span Cyber Security Center unites Span's wide experience in the area of information technologies and security with Cybergym's experience in education so that we can offer organizations the most relevant courses.

"The number of cyberattacks is increasing globally, they cause great damage and financial losses," said Ofir Hason, CEO of Cybergym. "People are the weakest link in a company's cyber defense – that's a fact – so over the past 10 years we've developed educational content and methodologies based on our experience working for the Israeli energy company IEC, the most attacked Israeli company."

According to projections, there will be a shortage of 3.5 million cyber security experts in the next two years. Our Span Cyber Security Center is the first of its kind in Southeast Europe, which gives Croatia and the region an extremely valuable educational resource in the creation and strengthening of experts for the fight against cybercrime.

"In Croatia, the opinion that we are small, and therefore not interesting to hackers is still quite prevalent," points out Zoran Kežman, President of the Span Cyber Security Center Management Board. "By entering the EU, we have become more exposed and we should be aware that our greatest value, along with our employees, is our data, which should be adequately protected. People are a key factor in the prevention of potential attacks, and the simulation of real situations can show all the complexity and seriousness of threats coming from cyberspace."

1.4.2. Licenses for the use of Microsoft software products and services – public tender

Based on an open procedure of public procurement for licenses for the use of Microsoft software products and services announced on February 14, 2022 by the Central Public Procurement Office (Središnji državni ured za središnju javnu nabavu), where the bid of the Group of bidders – Span d.d. and Combis d.o.o. was selected, licenses for the use of Microsoft software products and services were delivered to obliged entities for central public procurement on September 26, 20226 . The total value of licenses delivered was HRK 76,940,217.24.

1.4.3 . Microsoft advanced specializations (12)7

In September 2022, we acquired the twelfth Microsoft advanced specialization. Microsoft Advanced specializations are a guarantee of excellence and are awarded to partners with the highest expertise levels. Hence, we are proud to have earned the Cloud Security Advanced Specialization, which means that now, Span has all four available advanced specializations related to Cloud;

  • • Cloud Security
  • • Identity and Access Management
  • • Information Protection and
  • • Governance and Threat Protection.

Cloud Security Advanced specialization gives us an opportunity to show our capacities for the implementation of different solutions for cyber security for Azure, hybrid environments and multi cloud environments. Our expertise has been confirmed by our customers and in numerous Microsoft tests, and ensures us to skilfully manage workloads that await us in the future.

1.4.4. HP Power Partner status

Our effort and knowledge have been rewarded again with the HP Power Partner status, the highest level that HP awards to its partners. This status is awarded based on three key pillars directed to achieving higher effectiveness of partners, insight and profitability through performance, ability and cooperation. As a partner with the highest HP status, we base our success on advice provision and sales of computer equipment and solutions for end-users, which eventually result in better user experience and

business results for users who can create new and higher values more easily and quickly.

6 The obliged entities for the central public procurement referred to in Article 12 paragraph 1 of the Regulation on Internal Organization of the Central Public Procurement Office (Official Gazette no. 97/2020) and bodies subject to the Conclusions of the Government of the Republic of Croatia are the users of framework agreements for procurement of licenses for the use of software products and services.

7 https://www.span.eu/en/insights/span-counts-its-twelfth-microsoft-advanced-specialization/

1.4.5. Span CyberGRX Security Risk Assessment

The way our information security management system looks is becoming ever more important to our users, especially foreign ones. Therefore, we are increasingly receiving various inquiries in which we reply to questions on our processes (employment, awarding the right to access, incident management...) and technologies implemented for data protection.

In order to prevent the completion of various risk assessments by a number of our users, we used the advantages of the CyberGRX platform and made a single assessment.

This platform is used for a single assessment of the maturity of business processes and is used by companies providing services to global companies such as Span. All questions and answers are found at one place – in a report available at the CyberGRX platform. We wish our users to be aware of how we take care of our and their data and the extent of our reliability as a strategic partner. Our users can get access to the CyberGRX platform and get assured that Span is their loyal ally that takes care of security.

1.4.6. Microsoft Enterprise Skilling Initiative

In order to support our customers systemically with transformations towards a successful digital future, we have been the strategic partner of Microsoft for 30 years, so we can help our customers use the digital technology and tools in the best possible manner.

"It's essential for us to be able to offer our customers the know-how they need to build a successful digital presence and keep their technologies up to date. Our aim is to become a long-standing partner to our customers – not just to sell them one-off IT solutions," says Mihaela Trbojević, Product Marketing Director in Span.

In 2022 Microsoft recognized that initiative, power and perspective of Span and conducted a case study on the topic Microsoft Enterprise Skilling Initiative (ESI) by means of which the employees can specialize and acquire Microsoft certificates in order to always be up to date with the latest technologies.

The Microsoft case study speaks of us as one of the best partners in the region, continually investing in the de-

velopment of employees. In this way, Microsoft enables us, and at the same time helps us, to provide the most up-to-date advice to clients on how they can make the best use of newly acquired services and solutions.

"With twelve Microsoft advanced specializations and continuing acquisition of Microsoft certificates, the process of certification will continue to develop. We want to ensure our team is highly qualified and sets the bar high," Trbojević continued.

2. Financial indicators for nine months of 2022

2.1. Operating revenue, EBITDA and net profit of Span Group

2.2. Operating revenue, EBITDA and net profit of Span d.d.

2.3. Key features of the period – nine months of 2022

Profit and loss account - shortened

Span Group
In thousands of HRK 1-9M 2021 1-9M 2022 ∆% Q3 2021 Q3 2022 ∆%
Total revenue 587.447 653.536 11% 195.327 245.011 25%
Operating revenue 585.297 650.742 11% 194.631 243.887 25%
Other revenue 2.151 2.794 30% 696 1.124 61%
Total costs 560.072 601.663 7% 183.327 225.876 23%
Costs of goods and services sold 428.874 417.821 -3% 137.873 160.304 16%
Personnel expenses 95.981 138.728 45% 31.222 48.393 55%
Other business expenses 35.218 45.113 28% 14.233 17.179 21%
EBITDA before one-off items 32.897 55.377 68% 15.135 19.656 30%
EBITDA one-off items 5.522 3.504 - 3.136 521 -
EBITDA after one-off items 27.375 51.873 89% 12.000 19.135 59%
Depreciation 10.678 13.980 31% 3.441 5.499 60%
EBIT 16.697 37.893 127% 8.559 13.636 59%
Net financial result 855 4.929 477% (113) 1.753 1655%
One-off items of net financial result - 2.255 - - - -
Profit/loss before taxation before one-off items 23.074 44.072 91% 11.582 15.911 37%
Profit/loss before taxation after one-off items 17.551 42.822 144% 8.446 15.390 82%
Corporate tax 2.501 3.450 38% 814 509 -37%
Profit/loss after taxation before one-off items 20.572 40.621 97% 10.768 15.402 43%
Profit/loss after taxation after one-off items 15.050 39.372 162% 7.632 14.881 95%
Span d.d.
In thousands of HRK 1-9M 2021 1-9M 2022 ∆% Q3 2021 Q3 2022 ∆%
Total revenue 408.068 551.480 35% 144.730 220.690 52%
Operating revenue 406.288 548.992 35% 144.277 219.160 52%
Other revenue 1.779 2.488 40% 453 1.530 238%
Total costs 385.330 503.626 31% 136.169 203.616 50%
Costs of goods and services sold 282.819 365.341 29% 100.233 154.252 54%
Personnel expenses 76.564 103.235 35% 24.917 36.155 45%
Other business expenses 25.946 35.050 35% 11.019 13.209 20%
EBITDA before one-off items 28.260 48.752 73% 11.697 17.595 50%
EBITDA one-off items 5.522 898 - 3.136 521 -
EBITDA after one-off items 22.738 47.854 110% 8.561 17.074 99%
Depreciation 9.832 10.426 6% 3.237 3.577 11%
EBIT 12.906 37.428 190% 5.324 13.497 153%
Net financial result (659) 2.460 473% (342) 1.152 436%
One-off items of net financial result - - - - - -
Profit/loss before taxation before one-off items 17.769 40.786 130% 8.117 15.170 87%
Profit/loss before taxation after one-off items 12.247 39.888 226% 4.982 14.649 194%
Corporate tax 1.882 890 -53% 708 297 -58%
Profit/loss after taxation before one-off items 15.887 39.896 151% 7.409 14.874 101%
Profit/loss after taxation after one-off items 10.364 38.998 276% 4.274 14.352 236%

REVENUES

The total consolidated revenues increased by HRK 66,089 thousand, or 11%, compared to the nine months of the prior year. The operating revenues grew by HRK 65,445 thousand in the observed period, of which revenues in the segment of IT services with high added value increased by HRK 73,073 thousand whereas revenues in the segment of software asset management and licensing recorded a decline by HRK 7,628 thousand. This decline in the revenues comes from the fall of revenue in the Ukrainian market given that Microsoft enabled our users in Ukraine to use its products and services without compensation from April, 1st to December 12th, 2022.

In the same period, Span d.d. recorded a growth of its revenues by HRK 143,412 thousand, or 35%. The increase stems from the business revenue that grew by HRK 142,704 thousand. The strongest revenues growth was recorded in the segment of Infrastructure services, Cloud and Cyber Security, and it was 83%.

OPERATING EXPENSES

The total consolidated operating expenses saw an increase by HRK 41,590 thousand, or 7% compared to the nine months of 2021.

The increase in the personnel expenses was the largest generator of the total increase of expenses, and amounts to HRK 42,747 thousand, and results from the higher number of employees and one-off expenses arising from the allocation of shares to employees of Ekobit. The increase of the personnel expenses follows an increase in revenues in the segment of IT services with high added value. The average number of employees in the Group in the observed period of 2022 was 676, compared to the prior year when the average number of employees in the Group was 527.

Costs of goods and services were lower by HRK 11,053 thousand and resulted from lower costs of goods and services in the Ukrainian market, whereby other members of the Span Group recorded an increase of direct costs arising from the growth of revenues in the rest of the Group.

Other operating expenses of the Group increased by HRK 9,896 thousand under the influence of the higher amount of business activities and the higher number of employees.

The total expenses of Span d.d. increased by HRK 118,296 thousand, or 31%. The highest growth came from direct costs of goods and services in the amount of HRK 82,522 thousand.

The personnel costs of Span d.d. increased by HRK 26,671 thousand, or 35%. The average number of employees in the company in the observed period was 518, compared to the prior year when the average number of employees in the company was 428. Most of the newly employed were hired in the segments of services with high added value.

EBITDA

A significant growth of EBITDA followed an increase of revenue from the IT services with high added value, described in detail in the chapter Revenues by segments.

EBITDA of the Group before one-off items increased in the nine months compared to the prior year by HRK 22,480 thousand, or 68% and is HRK 55,377 thousand.

One-off items of EBITDA of the Group were HRK 3,504 thousand and related to 1) expenses arising from the Plan for allocation of shares to Ekobit employees defined in the purchase contract 2) operating expenses derived from the acquisition, which mainly related to the consultant costs, and 3) reserved expenses for the ESOP program for allocation of shares to employees. According to the announced terms and conditions in the Prospectus, any employee who keeps in their ownership one

or more ESOP packages for three years will be allocated by Span 25% shares concerning the number of shares that the employee holds within the ESOP package. After the expiry of the first year since the date of the public announcement of results, 5% of the total number of shares will be allocated, and 10% will be allocated after the second and third year.

EBITDA of the Group after one-off items in the observed period increased by HRK 24,498 thousand, to HRK 51,873 thousand, which was an increase of 89%.

Span d.d. recorded EBITDA growth before one-off items in the amount of HRK 20,491, or 73%, and totalled HRK 48,752 thousand.

In the nine months of 2022, Span d.d. recorded a growth of EBITDA after one-off items by HRK 25,116 thousand, to HRK 47,854 thousand, which was a growth of 110%.

NET PROFIT

Profit after taxation before one-off items of the Group increased by HRK 20,049, to HRK 40,621 thousand.

One-off items of the net financial result of the Group totalled HRK 2,255 thousand and related to the acquisition of Ekobit. The financial revenues are the result of a positive difference in the price of own shares of Ekobit i.e. a difference in prices at which Span purchased them and Ekobit acquired them in 2017 respectively.

Profit after taxes after one-off items of the Group in the observed period increased by HRK 24,322 thousand, to HRK 39,372 thousand.

Span d.d. recorded a growth of profit after taxes before one-off items by HRK 24,009 thousand, to HRK 39,896 thousand.

Span d.d. recorded an increase of profit after taxes after one-off items by HRK 28,634 thousand, to HRK 38,998 thousand.

2.4. Revenues by segments

Span Group generates revenues in the following segments:

    1. Software Asset Management and Licensing
    1. Infrastructure Services, Cloud & Cyber Security
    1. Service Center Management and Technical Support
    1. Software and Business Solution Development

Data on revenues from sales by the segments of the operation of the Group and Span d.d. for the observed period in 2021 and 2022 are given below.

Revenues by segments

Span Group
In thousands of HRK 1-9M 2021 1-9M 2022 ∆% Q3 2021 Q3 2022 ∆%
Total operating revenue 585.297 650.742 11% 194.631 243.887 25%
Software Asset Management and Licensing 430.011 422.383 -2% 139.767 164.709 18%
Infrastructure Services, Cloud & Cyber Security 57.807 90.432 56% 20.128 27.609 37%
Service Center Management and Technical Support 69.753 91.887 32% 25.767 34.077 32%
Software and Business Solution Development 27.726 46.040 66% 8.968 17.492 95%
Span d.d.
In thousands of HRK 1-9M 2021 1-9M 2022 ∆% Q3 2021 Q3 2022 ∆%
Total operating revenue 406.288 548.992 35% 144.277 219.160 52%
Software Asset Management and Licensing 276.544 358.502 30% 97.806 153.596 57%
Infrastructure Services, Cloud & Cyber Security 43.798 80.339 83% 15.539 24.887 60%
Service Center Management and Technical Support 68.281 88.532 30% 25.425 33.241 31%
Software and Business Solution Development 17.665 21.618 22% 5.508 7.436 35%

Segment revenue contribution

  1. Software Asset Management and Licensing recorded a fall in the market of Ukraine, which led to the total decline of the revenues of the Group in this segment. The share of revenues in the total operating revenues accounted for 65%, so it saw additional fall as opposed to the prior year due to the stronger growth in other segments.

2. Infrastructure Services, Cloud & Cyber Security continues to record a significant growth, 56% compared to the same period of 2021. Expanding business activities in the area of Cloud and security solutions is in line with the strategy of growth of the Group, which is contributed to by the increasing number of projects with the existing and new clients.

3. Service Center Management and Support contributes to continuing increase of revenues through the services of supervision and management of IT environment, and the increase of the revenues of this segment in the nine months is 32%.

4. Software and Business Solution Development achieved a significant growth of 66% in the observed period. The growth of this segment comes from the focused development of own IT solutions and platforms as well as development of specific business solutions for individual key consumers, such as CRM, automation and robotization of their business processes. The growth of this segment is additionally enhanced by the acquisition of Ekobit, whose operation is directed to development of software solutions.

2.5. Revenues by geography

Revenues by geography show the geographic market where goods, or services are invoiced. The share of revenues the Group makes in foreign markets accounts for 65% of the total revenues.

In the nine months, the most significant growth of revenues was recorded by the markets of Croatia (HRK 82,054 thousand) and the United States (HRK 52,611 thousand).

39% of revenues of Span d.d. in the observed period related to the Croatian market, which also recorded the highest growth in the observed period by HRK 76,984 thousand (55%), followed by the growth of revenues in the US market (HRK 47,517 thousand).

Revenues by geographic markets

2.6. Balance sheet

Span Group
In thousands of HRK 31.12.2021. 30.09.2022. 31.12.2021. 30.09.2022.
ASSETS 351.568 486.053 317.904 434.792
Fixed assets 87.381 121.609 99.738 132.905
Deferred tax assets 7.729 6.737 6.952 6.096
Current assets 87.877 217.213 60.499 187.690
Cash and cash equivalents 139.791 130.571 126.920 94.981
Prepaid expenses and accrued income 28.789 9.924 23.795 13.121
LIABILITIES 351.568 486.053 317.904 434.792
Equity and reserves 193.743 223.829 192.917 212.833
Long-term liabilities 31.430 23.115 29.149 20.019
Current liabilities 106.516 205.597 79.710 176.243
Accrued expenses and deferred revenue 19.878 33.511 16.128 25.697

ASSETS

The total value of the assets of the Group is higher by HRK 134,485 thousand amid the increase of current assets and long-term intangible assets.

The increase of the current assets i.e. increase of the short term receivables has resulted from the operation of the Group in 2022.

The increase of the long-term intangible assets related to initial booking of goodwill of Ekobit in the amount of HRK 27,898 thousand. In accordance with the requirements of IFRS 3 Business combinations, in the third quarter the Company carried out allocation of the purchase price for the acquisition of Ekobit, and adjusted the initially recognized relevant positions of intangible assets in the amount of HRK 17,498 thousand.

CASH AND CASH EQUIVALENTS

Most part of the current assets of the Group consist of cash in the amount of HRK 130,571 thousand. A decline of cash as compared to the prior period resulted from investment and financial activities of the Group.

Span Group Span d.d.
In thousands of HRK 1-9M
2021
1-9M
2022
Q3 2021 Q3 2022 1-9M
2021
1-9M
2022
Q3 2021 Q3 2022
Computer equipment
and other equipment
2.587 3.911 819 1.185 1.961 3.335 492 1.021
Tangible asssets in
preparation
- 1.475 - 1.475 - 1.475 - 1.475
Other intangible assets 4 2.091 - 1 - 2.088 - -
Intangible assets in
preparation
1.349 4.046 1.349 2.198 1.349 3.548 1.349 1.981
Investment in assets
total
3.940 11.523 2.168 4.859 3.310 10.446 1.841 4.477

INVESTMENT IN ASSETS

Investments of the Span Group in assets related to expenses for procurement and replacement of worn computer and other equipment for the work of employees. Investment in intangible assets under construction related to internally generated intangible assets that arises from continuation of development of software solutions available for further sale/use. Additionally, increase of assets under construction related to investment in the newly established company, Span Cyber Security Center. Other intangible assets relates to software intended for further sale/use.

DEFERRED TAX ASSETS

Deferred tax assets represent income tax return amounts which are recoverable based on future taxable profit deductions. Deferred tax assets are recognized up to the amount of taxable revenues which are likely to be achieved. When determining future taxable profits and the amount of taxable revenues which are likely to be achieved in the future, the Group judges and creates an estimate based on taxable profits from the previous year and the expected future revenues which are con-

sidered to be reasonable in existing circumstances. The Group has created an estimate on utilizing tax deductions for the estimate of the amount of deferred tax assets, based on the support gained from the Ministry of Economy, Entrepreneurship and Crafts. The aforementioned financial support allows Span d.d. to be exempt from paying income tax from 2015 to 2025 to the amount of 50% of the amount of the tax base, to the maximum threshold in the amount of the total investment according to the Investment Promotion Law (cro. ZOPI).

In December 2021 Span d.d. and Bonsai d.o.o. applied for the use of a new round of support entitled Project for investment in expansion of research and development capacity and capacity of delivery of IT solutions. They received a positive decision on February 25, 2022 based on which they achieved additional 50% relief of tax rate, which Span already used for 2021. Thus, Span d.d. ensured a profit tax rate of 0% by 2025 i.e. by the utilization of the maximum threshold of investment.

EQUITY AND RESERVES

The total equity of the Group increased by HRK 30,086 thousand as a result of increase of profit in the current period (HRK 39,372 thousand), lowering the retained profit due to payment of dividend (HRK 9,714 thousand) and increase of equity reserves arising from the acquisition of Ekobit.

LIABILITIES

The total long-term liabilities fell by HRK 8,315 thousand mostly due to the transfer of long-term contracted liabilities to short-term ones (liability for the purchase of own shares to former owners in line with the payment plan). The long term contracted liabilities as at September 30th, 2022 consisted of the long-term part of the liabilities to former owners (HRK 6,384 thousand).

The short-term liabilities increased primarily as a result of the 1) increase of liabilities towards suppliers 2) short term liabilities to employees, and 3) short-term liabilities for the purchase of the business share of Ekobit.

Current Assets, Current Liabilities and Working Capital Span d.d.
In thousands of HRK 31.12.2021. 30.09.2022. 31.12.2021. 30.09.2022.
Current assets 256.457 357.707 211.214 295.791
Current liabilities 126.395 239.109 95.838 201.940
Working capital 130.063 118.598 115.376 93.851
Current liquidity ratio 2,03 1,50 2,20 1,46

The current liquidity coefficient still points to a high ability of the Group to settle its short-term liabilities, even though it is lower compared to the prior period as a result of the acquisition of Ekobit and payment of dividend in the first half year.

Net debt Span Group Span d.d.
In thousands of HRK 31.12.2021. 30.09.2022. 31.12.2021. 30.09.2022.
Short-term and long-term bank loans 15.977 10.929 14.108 8.704
Cash and cash equivalents 139.791 130.571 126.920 94.981
Net debt (123.814) (119.641) (112.812) (86.277)
Total equity 193.743 223.829 192.917 212.833
Net debt and total equity ratio - - - -

Negative net debt is an indicator of the Groups' financial liquidity.

Span Group Span d.d.
In thousands of HRK 1-9M
2021
1-9M
2022
Q3 2021 Q3 2022 1-9M
2021
1-9M
2022
Q3 2021 Q3 2022
Net cash from operating
activities
25.906 59.813 5.210 8.428 18.002 39.094 -4.319 -1.425
Net cash used in investment
activities
-3.779 -41.896 -2.067 -1.091 -3.460 -45.779 -2.081 -2.471
Net cash used in financial
activities
80.144 -27.138 102.965 -4.532 80.452 -25.253 103.212 -4.478
Net increase / decrease in
cash and cash equivalents
102.271 -9.221 106.108 2.804 94.994 -31.939 96.812 -8.375

2.7. Cash flow

The Group and Span d.d. accomplished positive cash flows from business activities. The increase of cash from business activities primarily stems from expansion of operations during 2022.

The negative cash flow from investment activities is a consequence of the acquisition of Ekobit and investment in tangible and intangible assets.

The negative cash flow from financial activities derives from the outflow of cash for settlement towards banks and purchase of own shares. Furthermore, dividend in the amount of HRK 9,714 thousand was paid in the second quarter of 2022.

2.8. Operation of TOV Span Ukraine

The aim of this unit is to provide an insight into our operation in Ukraine to our investors, as well as its influence on the Span Group. For that purpose, we enclose a separate Income Statement of TOV Span for the nine months of 2021 and 2022 respectively, and contribution to the consolidated result of the Span Group.

Revenues of TOV Span in the nine months of 2022 saw a significant decline compared to the same period of the prior year, given that in the period 1 April – 31 December 2022, Microsoft enabled our users in Ukraine to use its products and services without compensation. The fall of direct expenses followed the fall of revenues, whereas due to the reduced business activities, operating expenses were also reduced. Income tax expressed in the result is a consequence of approvals issued by Microsoft, which created a tax liability in accordance with the Ukrainian tax legislation.

Revenues of TOV Span accounted for 4% of the consolidated revenues of the Span Group in the nine months of 2022.

In the nine months of 2022, the contribution to consolidated EBITDA was negative (HRK -2,028 thousand), and the share in the Group EBITDA was -4%.

The total investment of Span d.d. in TOV Span on September 30th, 2022 was HRK 4,664 thousand.

TOV Span standalone
In thousands of HRK 1-9M 2021 1-9M 2022 ∆% Q3 2021 Q3 2022 ∆%
Total revenue 130.471 28.134 -78% 27.773 1.955 -93%
Operating revenue 130.471 28.132 -78% 27.773 1.955 -93%
Other revenue - 2 - - - -
Total costs 132.884 29.499 -78% 28.525 2.410 -92%
Costs of goods and services sold 125.961 23.873 -81% 26.081 651 -98%
Personnel expenses 5.263 4.460 -15% 1.857 1.289 -31%
Other business expenses 1.660 1.165 -30% 587 470 -20%
EBITDA (2.413) (1.365) 43% (752) (455) 39%
Depreciation 58 37 -36% 19 16 -12%
EBIT (2.471) (1.402) 43% (770) (472) 39%
Net financial result 1.711 153 -91% 326 578 77%
Profit/loss before taxation (760) (1.249) -64% (444) 106 124%
Corporate tax - 1.712 - - (170) -
Profit/loss after taxation (760) (2.961) -290% (444) 276 162%
Contribution of TOV Span
Span Group
in Span Group
Share of TOV Span in
Span Group
In thousands of HRK 1-9M 2021 1-9M 2022 1-9M 2021 1-9M 2022 1-9M 2021 1-9M 2022
Total revenue 587.447 653.536 130.093 27.466 22% 4%
Operating revenue 585.297 650.742 130.093 27.464 22% 4%
Other revenue 2.151 2.794 - 2 - -
Total costs 560.072 601.663 132.862 29.495 24% 5%
Costs of goods and services sold 428.874 417.821 125.961 23.872 29% 6%
Personnel expenses 95.981 138.728 5.263 4.460 5% 3%
Other business expenses 35.218 45.113 1.638 1.162 5% 3%
EBITDA before one-off items 32.897 55.377 (2.769) (2.028) -8% -4%
EBITDA one-off items 5.522 3.504 - - - -
EBITDA after one-off items 27.375 51.873 (2.769) (2.028) -10% -4%
Depreciation 10.678 13.980 58 37 1% -
EBIT 16.697 37.893 (2.827) (2.065) -17% -5%
Net financial result 855 4.929 1.711 152 200% 3%
One-off items of net financial result - 2.255 - - - -
Profit/loss before taxation before
one-off items
23.074 44.072 (1.116) (1.913) -5% -4%
Profit/loss before taxation after
one-off items
17.551 42.822 (1.116) (1.913) -6% -4%
Corporate tax 2.501 3.450 - 1.712 - 50%
Profit/loss after taxation before
one-off items
20.572 40.621 (1.116) (3.625) -5% -9%
Profit/loss after taxation after
one-off items
15.050 39.372 (1.116) (3.625) -7% -9%

3. Financial Statements of Span Group and Span d.d.

Span Group

STATEMENT OF PROFIT OR LOSS
for the period 1.1.2022 to 30.9.2022
in HRK
Submitter: Span d.d.
Item AOP
code
Same period of the previous year Current period
1 2 Cumulative
3
Quarter
4
Cumulative
5
Quarter
6
I OPERATING INCOME (ADP 002 to 006) 001 587.447.455 195.327.074 653.536.067 245.010.919
1 Income from sales with undertakings within the group 002 0 0 0 0
2 Income from sales (outside group) 003 585.296.886 194.630.613 650.741.733 243.886.819
3 Income from the use of own products, goods and services 004 0 0 0 0
4 Other operating income with undertakings within the group 005 0 0 0 0
5 Other operating income (outside the group) 006 2.150.569 696.461 2.794.334 1.124.100
II OPERATING EXPENSES (ADP 08+009+013+017+018+019+022+029) 007 570.750.732 186.767.919 615.643.154 231.374.524
1 Changes in inventories of work in progress and finished goods 008 0 0 0 0
2 Material costs (ADP 010 to 012) 009 456.207.109 148.858.527 451.697.500 172.919.536
a) Costs of raw materials and consumables 010 2.858.540 1.548.983 3.935.072 1.348.594
b) Costs of goods sold 011 400.886.811 130.217.123 392.430.772 152.586.258
c) Other external costs 012 52.461.758 17.092.421 55.331.656 18.984.684
3 Staff costs (ADP 014 to 016) 013 95.981.003 31.221.515 138.728.430 48.392.840
a) Net salaries and wages 014 60.269.523 19.954.361 91.823.956 31.568.659
b) Tax and contributions from salary costs 015 26.591.599 8.319.214 34.810.928 12.453.058
c) Contributions on salaries 016 9.119.881 2.947.940 12.093.546 4.371.123
4 Depreciation 017 10.625.764 3.439.978 13.980.359 5.498.642
5 Other costs 018 7.884.326 3.247.296 11.222.698 4.561.965
6 Value adjustments (ADP 020+021) 019 52.530 603 14.167 1.541
a) fixed assets other than financial assets 020 0 0 0 0
b) current assets other than financial assets 021 52.530 603 14.167 1.541
7 Provisions (ADP 023 to 028) 022 0 0 0 0
a) Provisions for pensions, termination benefits and similar obligations 023 0 0 0 0
b) Provisions for tax liabilities 024 0 0 0 0
c) Provisions for ongoing legal cases 025 0 0 0 0
d) Provisions for renewal of natural resources 026 0 0 0 0
e) Provisions for warranty obligations 027 0 0 0 0
f) Other provisions 028 0 0 0 0
8 Other operating expenses 029 0 0 0 0
III FINANCIAL INCOME (ADP 031 to 040) 030 4.758.046 920.707 9.276.084 3.737.053
1 Income from investments in holdings (shares) of undertakings within the group 031 0 0 0 0
2 Income from investments in holdings (shares) of companies linked by virtue of
participating interests
032 0 0 0 0
3 Income from other long-term financial investment and loans granted to undertakings
within the group
033 0 0 0 0
4 Other interest income from operations with undertakings within the group 034 0 0 0 0
5 Exchange rate differences and other financial income from operations with
undertakings within the group
035 0 0 0 0
6 Income from other long-term financial investments and loans 036 0 0 0 0
7 Other interest income 037 453.651 96.829 354.934 182.134
8 Exchange rate differences and other financial income 038 4.304.395 823.878 6.666.320 3.554.919
9 Unrealised gains (income) from financial assets 039 0 0 0 0
10 Other financial income 040 0 0 2.254.830 0
IV FINANCIAL EXPENSES (ADP 042 to 048) 041 3.903.540 1.033.417 4.345.377 1.982.672
1 Interest expenses and similar expenses with undertakings within the group 042 0 0 0 0
2 Exchange rate differences and other expenses from operations with undertakings
within the group
043 0 0 0 0
3 Interest expenses and similar expenses 044 1.267.637 391.962 798.872 265.370
4 Exchange rate differences and other expenses 045 2.596.588 641.455 3.546.505 1.717.302
5 Unrealised losses (expenses) from financial assets 046 0 0 0 0
6 Value adjustments of financial assets (net) 047 0 0 0 0
7 Other financial expenses 048 39.315 0 0 0
V SHARE IN PROFIT FROM UNDERTAKINGS LINKED BY VRITUE OF PARTICIPATING
INTERESTS
049 0 0 0 0
UNAUDITED FINANCIAL STATEMENTS OF SPAN GROUP AND SPAN D.D. / JANUARY − SEPTEMBER 2022

VI SHARE IN PROFIT FROM JOINT VENTURES 050 0 0 0 0 VII SHARE IN LOSS OF COMPANIES LINKED BY VIRTUE OF PARTICIPATING INTEREST 051 0 0 1.244 1.244 VIII SHARE IN LOSS OF JOINT VENTURES 052 0 0 0 0 IX TOTAL INCOME (ADP 001+030+049 +050) 053 592.205.501 196.247.781 662.812.151 248.747.972 X TOTAL EXPENDITURE (ADP 007+041+051 + 052) 054 574.654.272 187.801.336 619.989.775 233.358.440 XI PRE-TAX PROFIT OR LOSS (ADP 053-054) 055 17.551.229 8.446.445 42.822.376 15.389.532 1 Pre-tax profit (ADP 053-054) 056 17.551.229 8.446.445 42.822.376 15.389.532 2 Pre-tax loss (ADP 054-053) 057 0 0 0 0 XII INCOME TAX 058 2.501.110 814.280 3.450.324 509.013 XIII PROFIT OR LOSS FOR THE PERIOD (ADP 055-059) 059 15.050.119 7.632.165 39.372.052 14.880.519

1 Profit for the period (ADP 055-059) 060 15.050.119 7.632.165 39.372.052 14.880.519
2 Loss for the period (ADP 059-055) 061 0 0 0 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 (ADP 063-064) 062 0 0 0 0
1 Pre-tax profit from discontinued operations 063 0 0 0 0
2 Pre-tax loss on discontinued operations 064 0 0 0 0
XV INCOME TAX OF DISCONTINUED OPERATIONS 065 0 0 0 0
1 Discontinued operations profit for the period (ADP 062-065) 066 0 0 0 0
2 Discontinued operations loss for the period (ADP 065-062) 067 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 055-+062) 068 0 0 0 0
1 Pre-tax profit (ADP 068) 069 0 0 0 0
2 Pre-tax loss (ADP 068) 070 0 0 0 0
XVII INCOME TAX (ADP 058+065) 071 0 0 0 0
XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 068-071) 072 0 0 0 0
1 Profit for the period (ADP 068-071) 073 0 0 0 0
2 Loss for the period (ADP 071-068) 074 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 076+077) 075 15.050.119 7.632.165 39.372.052 14.880.519
1 Attributable to owners of the parent 076 15.153.697 7.251.647 39.924.985 14.838.350
2 Attributable to minority (non-controlling) interest 077 -103.578 380.518 -552.933 42.169
STATEMENT OF OTHER COMPRHENSIVE INCOME (to be filled in by undertakings subject to IFRS)
I PROFIT OR LOSS FOR THE PERIOD 078 15.050.119 7.632.165 39.372.052 14.880.519
II OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX (ADP 80+ 87) 079 582.843 -301.195 1.585.060 1.136.439
III Items that will not be reclassified to profit or loss (ADP 081 to 085) 080 0 0 0 0
1 Changes in revaluation reserves of fixed tangible and intangible assets 081 0 0 0 0
2 Gains or losses from subsequent measurement of equity instruments at fair value
through other comprehensive income
082 0 0 0 0
3 Fair value changes of financial liabilities at fair value through statement of profit or
loss, attributable to changes in their credit risk
083 0 0 0 0
4 Actuarial gains/losses on the defined benefit obligation 084 0 0 0 0
5 Other items that will not be reclassified 085 0 0 0 0
6 Income tax relating to items that will not be reclassified 086 0 0 0 0
IV Items that may be reclassified to profit or loss (ADP 088 to 095) 087 582.843 -301.195 1.585.060 1.136.439
1 Exchange rate differences from translation of foreign operations 088 582.843 -301.195 1.585.060 1.136.439
2 Gains or losses from subsequent measurement of debt securities at fair value through
other comprehensive income
089 0 0 0 0
3 Profit or loss arising from effective cash flow hedging 090 0 0 0 0
4 Profit or loss arising from effective hedge of a net investment in a foreign operation 091 0 0 0 0
5 Share in other comprehensive income/loss of companies linked by virtue of
participating interests
092 0 0 0 0

VII COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 100+101) 099 15.632.962 7.330.970 40.957.112 16.016.958 1 Attributable to owners of the parent 100 15.736.540 6.950.452 41.510.045 15.974.789 2 Attributable to minority (non-controlling) interest 101 -103.578 380.518 -552.933 42.169

6 Changes in fair value of the time value of option 093 0 0 0 0 7 Changes in fair value of forward elements of forward contracts 094 0 0 0 0 8 Other items that may be reclassified to profit or loss 095 0 0 0 0 9 Income tax relating to items that may be reclassified to profit or loss 096 0 0 0 0 V NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 080+087- 086 - 096) 097 582.843 -301.195 1.585.060 1.136.439 VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 078+097) 098 15.632.962 7.330.970 40.957.112 16.016.958

APPENDIX to the Statement on comprehensive income (to be filled in by undertakings that draw up consolidated statements)

Span Group

BALANCE SHEET
balance as at 30.9.2022
in HRK
Submitter: Span d.d.
Item ADP Last day of the preceding At the reporting date of the
1 code
2
business year
3
current period
4
A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID 001 0 0
B) FIXED ASSETS (ADP 003+010+020+031+036) 002 95.110.461 128.346.335
I INTANGIBLE ASSETS (ADP 004 to 009) 003 28.079.421 59.772.218
1 Research and development 004 7.542.547 11.183.532
2 Concessions, patents, licences, trademarks, software and other rights 005 646.079 2.347.364
3 Goodwill 006 19.465.802 29.809.526
4 Advances for the purchase of intangible assets 007 0 0
5 Intangible assets in preparation 008 424.993 4.629.750
6 Other intangible assets 009 0 11.802.046
II TANGIBLE ASSETS (ADP 011 to 019) 010 58.431.229 59.972.671
1 Land 011 13.049.681 13.049.681
2 Buildings 012 32.403.011 32.149.707
3 Plant and equipment 013 3.257.601 4.167.062
4 Tools, working inventory and transportation assets 014 9.720.936 9.195.410
5 Biological assets 015 0 0
6 Advances for the purchase of tangible assets 016 0 0
7 Tangible assets in preparation 017 0 1.410.811
8 Other tangible assets 018 0 0
9 Investment property 019 0 0
III FIXED FINANCIAL ASSETS (ADP 021 to 030) 020 866.405 1.860.416
1 Investments in holdings (shares) of undertakings within the group 021 0 0
2 Investments in other securities of undertakings within the group 022 0 0
3 Loans, deposits, etc. to undertakings within the group 023 0 0
4. Investments in holdings (shares) of companies linked by virtue of participating interests 024 0 0
5 Investment in other securities of companies linked by virtue of participating interests 025 0 0
6 Loans, deposits etc. to companies linked by virtue of participating interests 026 0 0
7 Investments in securities 027 0 0
8 Loans, deposits, etc. given 028 317.647 558.893
9 Other investments accounted for using the equity method 029 0 5.756
10 Other fixed financial assets 030 548.758 1.295.767
IV RECEIVABLES (ADP 032 to 035) 031 4.285 3.834
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 4.285 3.834
V DEFERRED TAX ASSETS 036 7.729.121 6.737.196
C) CURRENT ASSETS (ADP 038+046+053+063) 037 227.668.058 347.783.336
I INVENTORIES (ADP 039 to 045) 038 2.026.428 2.588.845
1 Raw materials and consumables 039 0 0
2 Work in progress 040 0 0
3 Finished goods 041 0 0
4 Merchandise 042 2.026.428 2.588.845
5 Advances for inventories 043 0 0
6 Fixed assets held for sale 044 0 0
7 Biological assets 045 0 0
II RECEIVABLES (ADP 047 to 052) 046 84.970.998 209.305.014
047 0 0
1 Receivables from undertakings within the group
2 Receivables from companies linked by virtue of participating interests 048 0 0
3 Customer receivables 049 80.397.002 202.734.244
4 Receivables from employees and members of the undertaking 050 0 0
5 Receivables from government and other institutions 051 2.417.303 3.109.060
6 Other receivables 052 2.156.693 3.461.710
III CURRENT FINANCIAL ASSETS (ADP 054 to 062) 053 879.404 5.318.891
1 Investments in holdings (shares) of undertakings within the group 054 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 0 0
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 1.000.000
7 Investments in securities 060 0 1.479.552
UNAUDITED FINANCIAL STATEMENTS OF SPAN GROUP AND SPAN D.D. / JANUARY − SEPTEMBER 2022

8 Loans, deposits, etc. given 061 879.404 2.839.339 9 Other financial assets 062 0 0 IV CASH AT BANK AND IN HAND 063 139.791.228 130.570.586 D ) PREPAID EXPENSES AND ACCRUED INCOME 064 28.789.407 9.923.521 E) TOTAL ASSETS (ADP 001+002+037+064) 065 351.567.926 486.053.192 OFF-BALANCE SHEET ITEMS 066 0 0

A) CAPITAL AND RESERVES (ADP 068 to 070+076+077+081+084+087) 067 193.742.853 223.829.272 I INITIAL (SUBSCRIBED) CAPITAL 068 19.600.000 19.600.000 II CAPITAL RESERVES 069 79.083.569 81.280.246 III RESERVES FROM PROFIT (ADP 071+072-073+074+075) 070 8.252.425 8.252.425

LIABILITIES

1 Legal reserves 071 8.252.425 8.252.425
2 Reserves for treasury shares 072 1.015.559 8.681.627
3 Treasury shares and holdings (deductible item) 073 -1.015.559 -8.681.627
4 Statutory reserves 074 0 0
5 Other reserves 075 0 0
IV REVALUATION RESERVES 076 15.954.404 15.954.404
V FAIR VALUE RESERVES AND OTHER (ADP 078 to 082) 077 267.330 1.852.390
1 Financial assets at fair value through other comprehensive income (i.e. 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
4 Other fair value reserves 081 0 0
5 Exchange differences arising from the translation of foreign operations (consolidation) 082 267.330 1.852.390
VI RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 084-085) 083 45.713.436 56.423.533
1 Retained profit 084 45.713.436 56.423.533
2 Loss brought forward 085 0 0
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 087-088) 086 23.718.783 39.924.985
1 Profit for the business year 087 23.718.783 39.924.985
2 Loss for the business year 088 0 0
VIII MINORITY (NON-CONTROLLING) INTEREST 089 1.152.906 541.289
B) PROVISIONS (ADP 091 to 096) 090 0 0
1 Provisions for pensions, termination benefits and similar obligations 091 0 0
2 Provisions for tax liabilities 092 0 0
3 Provisions for ongoing legal cases 093 0 0
4 Provisions for renewal of natural resources 094 0 0
5 Provisions for warranty obligations 095 0 0
6 Other provisions 096 0 0
C) LONG-TERM LIABILITIES (ADP 098 to 108) 097 31.430.203 23.115.243
1 Liabilities to undertakings within the group 098 0 0
2 Liabilities for loans, deposits, etc. of undertakings within the group 099 0 0
3 Liabilities to companies linked by virtue of participating interests 100 0 0
4 Liabilities for loans, deposits etc. of companies linked by virtue of participating interests 101 0 0
5 Liabilities for loans, deposits etc. 102 0 0
6 Liabilities to banks and other financial institutions 103 6.895.152 4.014.191
7 Liabilities for advance payments 104 0 0
8 Liabilities to suppliers 105 0 0
9 Liabilities for securities 106 0 0
10 Other long-term liabilities 107 21.032.865 15.598.866
11 Deferred tax liability 108 3.502.186 3.502.186
D) SHORT-TERM LIABILITIES (ADP 110 to 123) 109 106.516.400 205.597.372
1 Liabilities to undertakings within the group 110 0 0
2 Liabilities for loans, deposits, etc. of undertakings within the group 111 0 0
3 Liabilities to companies linked by virtue of participating interests 112 0 0
4 Liabilities for loans, deposits etc. of companies linked by virtue of participating interests 113 0 0
5 Liabilities for loans, deposits etc. 114 0 0
6 Liabilities to banks and other financial institutions 115 9.082.059 6.915.137
7 Liabilities for advance payments 116 3.153.753 7.928.900
8 Liabilities to suppliers 117 53.513.063 119.391.955
9 Liabilities for securities 118 0 0
10 Liabilities to employees 119 8.838.574 9.742.752
11 Taxes, contributions and similar liabilities 120 11.595.560 10.042.653

12 Liabilities arising from the share in the result 121 0 0 13 Liabilities arising from fixed assets held for sale 122 0 0 14 Other short-term liabilities 123 20.333.391 51.575.975 E) ACCRUALS AND DEFERRED INCOME 124 19.878.470 33.511.305 F) TOTAL – LIABILITIES (ADP 067+090+097+109+124) 125 351.567.926 486.053.192 G) OFF-BALANCE SHEET ITEMS 126 0 0

Span Group

STATEMENT OF CASH FLOWS - indirect method
for the period 1.1.2022 to 30.9.2022
in HRK
Submitter: Span d.d. ADP Same period of the
Item code previous year Current period
1 2 3 4
Cash flow from operating activities
1 Pre-tax profit 001 17.551.229 42.822.376
2 Adjustments (ADP 003 to 010): 002 12.232.303 14.711.128
a) Depreciation 003 10.625.764 13.980.359
b) Gains and losses from sale and value adjustment of fixed tangible and intangible assets 004 -87.820 -154.603
c) Gains and losses from sale and unrealised gains and losses and value adjustment of financial assets 005 0 14.167
d) Interest and dividend income 006 -453.651 -354.934
e) Interest expenses 007 1.267.367 798.872
f) Provisions 008 0 0
g) Exchange rate differences (unrealised) 009 593.935 1.525.501
h) Other adjustments for non-cash transactions and unrealised gains and losses 010 286.708 -1.098.234
I Cash flow increase or decrease before changes in working capital (ADP 001+002) 011 29.783.532 57.533.504
3 Changes in the working capital (ADP 013 to 016) 012 -1.602.914 5.370.565
a) Increase or decrease in short-term liabilities 013 -4.034.379 91.401.199
b) Increase or decrease in short-term receivables 014 5.025.646 -117.771.938
c) Increase or decrease in inventories 015 -26.893 -562.417
d) Other increase or decrease in working capital 016 -2.567.288 32.303.721
II Cash from operations (ADP 011+012) 017 28.180.618 62.904.069
4 Interest paid 018 -1.339.775 -825.132
5 Income tax paid 019 -935.225 -2.265.625
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019) 020 25.905.618 59.813.312
Cash flow from investment activities
1 Cash receipts from sales of fixed tangible and intangible assets 021 158.321 258.635
2 Cash receipts from sales of financial instruments 022 0 0
3 Interest received 023 0 0
4 Dividends received 024 0 0
5 Cash receipts from repayment of loans and deposits 025 0 0
6 Other cash receipts from investment activities 026 2.879 451
III Total cash receipts from investment activities (ADP 021 to 026) 027 161.200 259.086
1 Cash payments for the purchase of fixed tangible and intangible assets 028 -3.939.745 -11.533.118
2 Cash payments for the acquisition of financial instruments 029 0 0
3 Cash payments for loans and deposits for the period 030 0 0
4 Acquisition of a subsidiary, net of cash acquired 031 0 -30.616.326
5 Other cash payments from investment activities 032 0 -5.756
IV Total cash payments from investment activities (ADP 028 to 032) 033 -3.939.745 -42.155.200
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033) 034 -3.778.545 -41.896.114
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 036 100.910.600 0
3 Cash receipts from credit principals, loans and other borrowings 037 51.455.542 4.656.972
4 Other cash receipts from financing activities 038 453.651 354.934
V Total cash receipts from financing activities (ADP 035 to 038) 039 152.819.793 5.011.906
1 Cash payments for the repayment of credit principals, loans and other borrowings and debt financial
instruments
040 -64.064.601 -10.523.867
2 Cash payments for dividends 041 -1.538.880 -9.713.775
3 Cash payments for finance lease 042 -27.074 -28.419
4 Cash payments for the redemption of treasury shares and decrease in initial (subscribed) capital 043 -3.045.156 -3.802.179
5 Other cash payments from financing activities 044 -4.000.406 -8.081.506
VI Total cash payments from financing activities (ADP 040 to 044) 045 -72.676.117 -32.149.746
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045) 046 80.143.676 -27.137.840
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) 048 102.270.749 -9.220.642
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 049 29.585.124 139.791.228
F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD(ADP 048+049) 050 131.855.873 130.570.586

STATEMENT OF CHANGES IN EQUITY Span Group

for the period from 1.1.2022 to 30.9.2022 in HRK
Attributable to owners of the parent
Item AOP
code
Initial
(subscribed)
capital
Capital reserves Legal reserves Reserves for
treasury shares
Treasury shares
and holdings
(deductible item)
Statutory reserves Other reserves Revaluation reserves Fair value of financial
assets through other
comprehensive income
Cash flow hedge -
effective portion
Hedge of a net inve
stment in a foreign
operation - effective
Other fair value
reserves
Exchange rate
differences from
translation of foreign
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 (available for sale)
11
12 portion
13
14 operations
15
16 17 18 (3 do 6 - 7 19 20 (18+19)
Previous period + 8 do 17)
1 Balance on the first day of the previous business year 01 19.600.000 0 8.476.501 28.400.000 28.400.000 0 0 8.451.348 0 0 0 0 -564.855 10.714.624 7.797.697 54.475.315 1.049.110 55.524.425
2 Changes in accounting policies 02 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
3 Correction of errors 03 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 previous business year (restated) (ADP 01 to 03) 04 19.600.000 0 8.476.501 28.400.000 28.400.000 0 0 8.451.348 0 0 0 0 -564.855 10.714.624 7.797.697 54.475.315 1.049.110 55.524.425
5 Profit/loss of the period 05 0 0 0 0 0 0 0 0 0 0 0 0 0 0 23.718.783 23.718.783 104.734 23.823.517
6 Exchange rate differences from translation of foreign operations 06 0 0 0 0 0 0 0 0 0 0 0 0 832.185 0 0 832.185 0 832.185
7 Changes in revaluation reserves of fixed tangible and intangible assets 07 0 0 0 0 0 0 0 7.503.056 0 0 0 0 0 454.731 0 7.957.787 0 7.957.787
8 Gains or losses from subsequent measurement of financial assets at fair value through other
comprehensive income (available for sale) 08 0 0 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 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 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 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 0 0
13 Other changes in equity unrelated to owners 13 0 -19.328.200 0 0 0 0 0 0 0 0 0 0 0 19.328.200 0 0 0 0
14 Tax on transactions recognised directly in equity 14 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
15 Decrease in initial (subscribed) capital (other than arising from the pre-bankruptcy
settlement procedure or from the reinvestment of profit)
15 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
16 Decrease in initial (subscribed) capital arising from the pre-bankruptcy settlement procedure 16 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
17 Decrease in initial (subscribed) capital arising from the reinvestment of profit 17 0 0 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 0 0
19 Payments from members/shareholders 19 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
20 Payment of share in profit/dividend
21 Other distributions and payments to members/shareholders
20
21
0
0
0
98.411.769
0
-814.716
0
-27.384.441
0
-27.384.441
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-1.538.880
9.547.704
0
0
-1.538.880
107.144.757
0
-938
-1.538.880
107.143.819
22 Transfer to reserves according to the annual schedule 22 0 0 590.640 0 0 0 0 0 0 0 0 0 0 7.207.057 -7.797.697 0 0 0
23 Increase in reserves arising from the pre-bankruptcy settlement procedure 23 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
24 Balance on the last day of the previous business year reporting period
(ADP 04 to 23)
24 19.600.000 79.083.569 8.252.425 1.015.559 1.015.559 0 0 15.954.404 0 0 0 0 267.330 45.713.436 23.718.783 192.589.947 1.152.906 193.742.853
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 25 0 -19.328.200 0 0 0 0 0 7.503.056 0 0 0 0 832.185 19.782.931 0 8.789.972 0 8.789.972
(ADP 06 to 14)
II COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD (ADP 05+25) 26 0 -19.328.200 0 0 0 0 0 7.503.056 0 0 0 0 832.185 19.782.931 23.718.783 32.508.755 104.734 32.613.489
III TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD RECOGNISED DIRECTLY IN
EQUITY (ADP 15 to 23)
27 0 98.411.769 -224.076 -27.384.441 -27.384.441 0 0 0 0 0 0 0 0 15.215.881 -7.797.697 105.605.877 -938 105.604.939
Current period
1 Balance on the first day of the current business year 28 19.600.000 79.083.569 8.252.425 1.015.559 1.015.559 0 0 15.954.404 0 0 0 0 267.330 45.713.436 23.718.783 192.589.947 1.152.906 193.742.853
2 Changes in accounting policies 29 0 0 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 current business year (restated) (AOP 28 to 30)
30
31
0
19.600.000
0
79.083.569
0
8.252.425
0
1.015.559
0
1.015.559
0
0
0
0
0
15.954.404
0
0
0
0
0
0
0
0
0
267.330
0
45.713.436
0
23.718.783
0
192.589.947
0
1.152.906
0
193.742.853
5 Profit/loss of the period 32 0 0 0 0 0 0 0 0 0 0 0 0 0 0 39.924.985 39.924.985 -552.933 39.372.052
6 Exchange rate differences from translation of foreign operations 33 0 0 0 0 0 0 0 0 0 0 0 0 1.585.060 0 0 1.585.060 0 1.585.060
7 Changes in revaluation reserves of fixed tangible and intangible assets 34 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
8 Gains or losses from subsequent measurement of financial assets at fair value through other 35 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
comprehensive income (available for sale)
9 Profit or loss arising from effective cash flow hedge 36 0 0 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 37 0 0 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
38 0 0 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 39 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
13 Other changes in equity unrelated to owners 40 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
14 Tax on transactions recognised directly in equity 41 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
15 Decrease in initial (subscribed) capital (other than arising from the pre-bankruptcy settle
ment procedure or from the reinvestment of profit)
42 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
16 Decrease 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 0 0
17 Decrease in initial (subscribed) capital arising from the reinvestment of profit 44 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
18 Redemption of treasury shares/holdings 45 0 0 0 5.842.730 5.842.730 0 0 0 0 0 0 0 0 0 0 0 0 0
19 Payments from members/shareholders 46 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
20 Payment of share in profit/dividend 47 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -9.713.775 -9.713.775 0 -9.713.775
21 Other distributions and payments to members/shareholders 48 0 2.196.677 0 1.823.338 1.823.338 0 0 0 0 0 0 0 0 -3.294.911 0 -1.098.234 -58.684 -1.156.918
22 Carryforward per annual plane 49 0 0 0 0 0 0 0 0 0 0 0 0 0 14.005.008 -14.005.008 0 0 0
23 Increase in reserves arising from the pre-bankruptcy settlement procedure 50 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
24 Balance on the last day of the current business year reporting period (ADP 31 to 50) 51 19.600.000 81.280.246 8.252.425 8.681.627 8.681.627 0 0 15.954.404 0 0 0 0 1.852.390 56.423.533 39.924.985 223.287.983 541.289 223.829.272
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 (ADP 33 to 41)
52 0 0 0 0 0 0 0 0 0 0 0 0 1.585.060 0 0 1.585.060 0 1.585.060
II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP 32 do 52) 53 0 0 0 0 0 0 0 0 0 0 0 0 1.585.060 0 39.924.985 41.510.045 -552.933 40.957.112
III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED DIRECTLY IN
EQUITY (ADP 42 to 50)
54 0 2.196.677 0 7.666.068 7.666.068 0 0 0 0 0 0 0 0 10.710.097 -23.718.783 -10.812.009 -58.684 -10.870.693

Span d.d.

STATEMENT OF PROFIT OR LOSS
for the period 1.1.2022 to 30.9.2022
in HRK
Submitter: Span d.d.
Item AOP
code
Cumulative Same period of the previous year
Quarter
Cumulative Current period
Quarter
1 2 3 4 5 6
I OPERATING INCOME (ADP 002 to 006) 001 408.067.671 144.729.746 551.480.007 220.689.772
1 Income from sales with undertakings within the group 002 91.674.263 18.944.753 111.390.189 33.167.019
2 Income from sales (outside group) 003 314.613.913 125.332.036 437.601.609 185.992.975
3 Income from the use of own products, goods and services 004 0 0 0 0
4 Other operating income with undertakings within the group 005 310.161 57.889 60.222 11.406
5 Other operating income (outside the group) 006 1.469.334 395.068 2.427.987 1.518.372
II OPERATING EXPENSES (ADP 08+009+013+017+018+019+022+029) 007 395.162.045 139.405.395 514.052.497 207.192.738
1 Changes in inventories of work in progress and finished goods 008 0 0 0 0
2 Material costs (ADP 010 to 012) 009 302.356.465 108.477.244 391.987.045 163.908.203
a) Costs of raw materials and consumables 010 1.599.653 547.581 3.405.609 1.177.861
b) Costs of goods sold 011 258.803.827 91.277.296 338.939.138 145.341.571
c) Other external costs 012 41.952.985 16.652.367 49.642.298 17.388.771
3 Staff costs (ADP 014 to 016) 013 76.563.838 24.916.896 103.234.917 36.155.178
a) Net salaries and wages 014 45.920.871 15.241.340 64.236.584 22.556.428
b) Tax and contributions from salary costs 015 22.401.049 6.986.518 28.816.480 9.993.478
c) Contributions on salaries 016 8.241.918 2.689.038 10.181.853 3.605.272
4 Depreciation 017 9.779.839 3.236.106 10.426.375 3.577.003
5 Other costs 018 6.409.373 2.774.546 8.389.993 3.550.813
6 Value adjustments (ADP 020+021) 019 52.530 603 14.167 1.541
a) fixed assets other than financial assets 020 0 0 0 0
b) current assets other than financial assets 021 52.530 603 14.167 1.541
7 Provisions (ADP 023 to 028) 022 0 0 0 0
a) Provisions for pensions, termination benefits and similar obligations 023 0 0 0 0
b) Provisions for tax liabilities 024 0 0 0 0
c) Provisions for ongoing legal cases 025 0 0 0 0
d) Provisions for renewal of natural resources 026 0 0 0 0
e) Provisions for warranty obligations 027 0 0 0 0
f) Other provisions 028 0 0 0 0
8 Other operating expenses 029 0 0 0 0
III FINANCIAL INCOME (ADP 031 to 040) 030 2.775.006 516.588 5.927.532 2.781.016
1 Income from investments in holdings (shares) of undertakings within the group 031 0 0 0 0
2 Income from investments in holdings (shares) of companies linked by virtue of
participating interests
032 0 0 0 0
3 Income from other long-term financial investment and loans granted to undertakings
within the group
033 0 0 0 0
4 Other interest income from operations with undertakings within the group 034 0 0 0 0
5 Exchange rate differences and other financial income from operations with
undertakings within the group
035 133.072 133.072 510.045 307.779
6 Income from other long-term financial investments and loans 036 0 0 0 0
7 Other interest income 037 249.865 1.175 68.072 10.401
8 Exchange rate differences and other financial income 038 2.392.069 382.341 5.349.415 2.462.836
9 Unrealised gains (income) from financial assets 039 0 0 0 0
10 Other financial income 040 0 0 0 0
IV FINANCIAL EXPENSES (ADP 042 to 048) 041 3.433.958 859.050 3.467.292 1.629.107
1 Interest expenses and similar expenses with undertakings within the group 042 0 0 0 0
2 Exchange rate differences and other expenses from operations with undertakings
within the group
043 147.588 147.588 117.911 41.683
3 Interest expenses and similar expenses 044 1.154.029 383.151 635.155 201.375
4 Exchange rate differences and other expenses 045 2.132.341 328.311 2.714.226 1.386.049
5 Unrealised losses (expenses) from financial assets 046 0 0 0 0
6 Value adjustments of financial assets (net) 047 0 0 0 0
7 Other financial expenses 048 0 0 0 0
V SHARE IN PROFIT FROM UNDERTAKINGS LINKED BY VRITUE OF PARTICIPATING
INTERESTS
049 0 0 0 0
UNAUDITED FINANCIAL STATEMENTS OF SPAN GROUP AND SPAN D.D. / JANUARY − SEPTEMBER 2022

VI SHARE IN PROFIT FROM JOINT VENTURES 050 0 0 0 0 VII SHARE IN LOSS OF COMPANIES LINKED BY VIRTUE OF PARTICIPATING INTEREST 051 0 0 0 0

VIII SHARE IN LOSS OF JOINT VENTURES 052 0 0 0 0
IX TOTAL INCOME (ADP 001+030+049 +050) 053 410.842.677 145.246.334 557.407.539 223.470.788
X TOTAL EXPENDITURE (ADP 007+041+051 + 052) 054 398.596.003 140.264.445 517.519.789 208.821.845
XI PRE-TAX PROFIT OR LOSS (ADP 053-054) 055 12.246.674 4.981.889 39.887.750 14.648.943
1 Pre-tax profit (ADP 053-054) 056 12.246.674 4.981.889 39.887.750 14.648.943
2 Pre-tax loss (ADP 054-053) 057 0 0 0 0
XII INCOME TAX 058 1.882.360 708.424 889.794 296.598
XIII PROFIT OR LOSS FOR THE PERIOD (ADP 055-059) 059 10.364.314 4.273.465 38.997.956 14.352.345
1 Profit for the period (ADP 055-059) 060 10.364.314 4.273.465 38.997.956 14.352.345
2 Loss for the period (ADP 059-055) 061 0 0 0 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 (ADP 063-064) 062 0 0 0 0
1 Pre-tax profit from discontinued operations 063 0 0 0 0
2 Pre-tax loss on discontinued operations 064 0 0 0 0
XV INCOME TAX OF DISCONTINUED OPERATIONS 065 0 0 0 0
1 Discontinued operations profit for the period (ADP 062-065) 066 0 0 0 0
2 Discontinued operations loss for the period (ADP 065-062) 067 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 055-+062) 068 0 0 0 0
1 Pre-tax profit (ADP 068) 069 0 0 0 0
2 Pre-tax loss (ADP 068) 070 0 0 0 0
XVII INCOME TAX (ADP 058+065) 071 0 0 0 0
XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 068-071) 072 0 0 0 0
1 Profit for the period (ADP 068-071) 073 0 0 0 0
2 Loss for the period (ADP 071-068) 074 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 076+077) 075 0 0 0 0
1 Attributable to owners of the parent 076 0 0 0 0
2 Attributable to minority (non-controlling) interest 077 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 078 10.364.314 4.273.465 38.997.956 14.352.345
II OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX (ADP 80+ 87) 079 0 0 0 0
III Items that will not be reclassified to profit or loss (ADP 081 to 085) 080 0 0 0 0
1 Changes in revaluation reserves of fixed tangible and intangible assets 081 0 0 0 0
2 Gains or losses from subsequent measurement of equity instruments at fair value
through other comprehensive income
082 0 0 0 0
3 Fair value changes of financial liabilities at fair value through statement of profit or
loss, attributable to changes in their credit risk
083 0 0 0 0
4 Actuarial gains/losses on the defined benefit obligation 084 0 0 0 0
5 Other items that will not be reclassified 085 0 0 0 0
6 Income tax relating to items that will not be reclassified 086 0 0 0 0
IV Items that may be reclassified to profit or loss (ADP 088 to 095) 087 0 0 0 0
1 Exchange rate differences from translation of foreign operations 088 0 0 0 0
2 Gains or losses from subsequent measurement of debt securities at fair value through
other comprehensive income
089 0 0 0 0
3 Profit or loss arising from effective cash flow hedging 090 0 0 0 0
4 Profit or loss arising from effective hedge of a net investment in a foreign operation 091 0 0 0 0
5 Share in other comprehensive income/loss of companies linked by virtue of
participating interests
092 0 0 0 0
6 Changes in fair value of the time value of option 093 0 0 0 0
7 Changes in fair value of forward elements of forward contracts 094 0 0 0 0
8 Other items that may be reclassified to profit or loss 095 0 0 0 0

9 Income tax relating to items that may be reclassified to profit or loss 096 0 0 0 0 V NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 080+087- 086 - 096) 097 0 0 0 0 VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 078+097) 098 10.364.314 4.273.465 38.997.956 14.352.345 APPENDIX to the Statement on comprehensive income (to be filled in by undertakings that draw up consolidated statements) VII COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 100+101) 099 0 0 0 0 1 Attributable to owners of the parent 100 0 0 0 0 2 Attributable to minority (non-controlling) interest 101 0 0 0 0

Span d.d.

BALANCE SHEET
balance as at 30.9.2022
in HRK
Submitter: Span d.d.
Item ADP
code
Last day of the preceding
business year
At the reporting date of the
current period
1 2 3 4
A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID 001 0 0
B) FIXED ASSETS (ADP 003+010+020+031+036) 002 106.690.052 139.001.107
I INTANGIBLE ASSETS (ADP 004 to 009) 003 18.487.016 28.928.406
1 Research and development 004 6.907.749 5.316.788
2 Concessions, patents, licences, trademarks, software and other rights 005 373.669 2.153.543
3 Goodwill 006 10.780.605 17.485.201
4 Advances for the purchase of intangible assets 007 0 0
5 Intangible assets in preparation 008 424.993 3.972.874
6 Other intangible assets 009 0 0
II TANGIBLE ASSETS (ADP 011 to 019) 010 53.122.234 52.264.537
1 Land 011 13.049.681 13.049.681
2 Buildings 012 29.637.897 27.313.924
013 3.012.279 3.537.627
3 Plant and equipment
4 Tools, working inventory and transportation assets 014 7.422.377 6.952.494
5 Biological assets 015 0 0
6 Advances for the purchase of tangible assets 016 0 0
7 Tangible assets in preparation 017 0 1.410.811
8 Other tangible assets 018 0 0
9 Investment property 019 0 0
III FIXED FINANCIAL ASSETS (ADP 021 to 030) 020 28.124.898 51.708.024
1 Investments in holdings (shares) of undertakings within the group 021 27.768.705 49.866.733
2 Investments in other securities of undertakings within the group 022 0 0
3 Loans, deposits, etc. to undertakings within the group 023 0 1.103.575
4. Investments in holdings (shares) of companies linked by virtue of participating interests 024 0 7.000
5 Investment in other securities of companies linked by virtue of participating interests 025 0 0
6 Loans, deposits etc. to companies linked by virtue of participating interests 026 0 0
7 Investments in securities 027 0 0
8 Loans, deposits, etc. given 028 245.488 245.488
9 Other investments accounted for using the equity method 029 0 0
10 Other fixed financial assets 030 110.705 485.228
IV RECEIVABLES (ADP 032 to 035) 031 4.285 3.834
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 4.285 3.834
V DEFERRED TAX ASSETS 036 6.951.619 6.096.306
C) CURRENT ASSETS (ADP 038+046+053+063) 037 187.418.288 282.670.396
I INVENTORIES (ADP 039 to 045) 038 1.972.414 2.332.575
1 Raw materials and consumables 039 0 0
2 Work in progress 040 0 0
3 Finished goods 041 0 0
4 Merchandise 042 1.972.414 2.332.575
5 Advances for inventories 043 0 0
6 Fixed assets held for sale 044 0 0
7 Biological assets 045 0 0
II RECEIVABLES (ADP 047 to 052) 046 58.526.117 183.834.867
1 Receivables from undertakings within the group 047 7.012.558 4.729.823
2 Receivables from companies linked by virtue of participating interests 048 0 0
3 Customer receivables 049 49.028.871 176.311.267
4 Receivables from employees and members of the undertaking 050 0 0
5 Receivables from government and other institutions 051 319.860 1.387.085
6 Other receivables 052 2.164.828 1.406.692
III CURRENT FINANCIAL ASSETS (ADP 054 to 062) 053 0 1.522.244
1 Investments in holdings (shares) of undertakings within the group 054 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 0 522.244
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 1.000.000
7 Investments in securities 060 0 0

UNAUDITED FINANCIAL STATEMENTS OF SPAN GROUP AND SPAN D.D. / JANUARY − SEPTEMBER 2022

37

8 Loans, deposits, etc. given 061 0 0 9 Other financial assets 062 0 0 IV CASH AT BANK AND IN HAND 063 126.919.757 94.980.710 D ) PREPAID EXPENSES AND ACCRUED INCOME 064 23.795.411 13.120.550 E) TOTAL ASSETS (ADP 001+002+037+064) 065 317.903.751 434.792.053 OFF-BALANCE SHEET ITEMS 066 0 0

LIABILITIES
A) CAPITAL AND RESERVES (ADP 068 to 070+076+077+081+084+087) 067 192.916.583 212.833.082
I INITIAL (SUBSCRIBED) CAPITAL 068 19.600.000 19.600.000
II CAPITAL RESERVES 069 79.083.569 81.280.246
III RESERVES FROM PROFIT (ADP 071+072-073+074+075) 070 7.412.739 7.412.739
1 Legal reserves 071 7.412.739 7.412.739
2 Reserves for treasury shares 072 615.559 5.164.118
3 Treasury shares and holdings (deductible item) 073 -615.559 -5.164.118
4 Statutory reserves 074 0 0
5 Other reserves 075 0 0
IV REVALUATION RESERVES 076 15.954.404 15.954.404
V FAIR VALUE RESERVES AND OTHER (ADP 078 to 082) 077 0 0
1 Financial assets at fair value through other comprehensive income (i.e. 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
4 Other fair value reserves 081 0 0
5 Exchange differences arising from the translation of foreign operations (consolidation) 082 0 0
VI RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 084-085) 083 51.506.377 49.587.737
1 Retained profit 084 51.506.377 49.587.737
2 Loss brought forward 085 0 0
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 087-088) 086 19.359.494 38.997.956
1 Profit for the business year 087 19.359.494 38.997.956
2 Loss for the business year 088 0 0
VIII MINORITY (NON-CONTROLLING) INTEREST 089 0 0
B) PROVISIONS (ADP 091 to 096) 090 0 0
1 Provisions for pensions, termination benefits and similar obligations 091 0 0
2 Provisions for tax liabilities 092 0 0
3 Provisions for ongoing legal cases 093 0 0
4 Provisions for renewal of natural resources 094 0 0
5 Provisions for warranty obligations 095 0 0
6 Other provisions 096 0 0
C) LONG-TERM LIABILITIES (ADP 098 to 108) 097 29.148.993 20.018.583
1 Liabilities to undertakings within the group 098 0 0
2 Liabilities for loans, deposits, etc. of undertakings within the group 099 0 0
3 Liabilities to companies linked by virtue of participating interests 100 0 0
4 Liabilities for loans, deposits etc. of companies linked by virtue of participating interests 101 0 0
5 Liabilities for loans, deposits etc. 102 0 0
6 Liabilities to banks and other financial institutions 103 6.895.152 4.014.191
7 Liabilities for advance payments 104 0 0
8 Liabilities to suppliers 105 0 0
9 Liabilities for securities 106 0 0
10 Other long-term liabilities 107 18.751.655 12.502.206
11 Deferred tax liability 108 3.502.186 3.502.186
D) SHORT-TERM LIABILITIES (ADP 110 to 123) 109 79.709.966 176.243.362
1 Liabilities to undertakings within the group 110 1.241.757 7.146.650
2 Liabilities for loans, deposits, etc. of undertakings within the group 111 0 0
3 Liabilities to companies linked by virtue of participating interests 112 0 0
4 Liabilities for loans, deposits etc. of companies linked by virtue of participating interests 113 0 0
5 Liabilities for loans, deposits etc. 114 0 0
6 Liabilities to banks and other financial institutions 115 7.212.661 4.689.398
7 Liabilities for advance payments 116 1.318.683 1.048.036
8 Liabilities to suppliers 117 38.131.824 113.934.526
9 Liabilities for securities 118 0 0
10 Liabilities to employees 119 5.990.115 7.446.436
11 Taxes, contributions and similar liabilities 120 7.241.434 5.865.706

12 Liabilities arising from the share in the result 121 0 0 13 Liabilities arising from fixed assets held for sale 122 0 0 14 Other short-term liabilities 123 18.573.492 36.112.610 E) ACCRUALS AND DEFERRED INCOME 124 16.128.209 25.697.026 F) TOTAL – LIABILITIES (ADP 067+090+097+109+124) 125 317.903.751 434.792.053 G) OFF-BALANCE SHEET ITEMS 126 0 0

Span d.d.

STATEMENT OF CASH FLOWS - indirect method
for the period 1.1.2022 to 30.9.2022
in HRK
Submitter: Span d.d.
Item ADP Same period of the Current period
1 code
2
previous year
3
4
Cash flow from operating activities
1 Pre-tax profit 001 12.246.674 39.887.750
2 Adjustments (ADP 003 to 010): 002 10.549.855 9.901.227
a) Depreciation 003 9.779.839 10.426.375
b) Gains and losses from sale and value adjustment of fixed tangible and intangible assets 004 -87.820 -47.774
c) Gains and losses from sale and unrealised gains and losses and value adjustment of financial assets 005 0 -1.044.457
d) Interest and dividend income 006 -249.865 -68.072
e) Interest expenses 007 1.154.029 635.155
f) Provisions 008 0 0
g) Exchange rate differences (unrealised) 009 -46.328 0
h) Other adjustments for non-cash transactions and unrealised gains and losses 010 0 0
I Cash flow increase or decrease before changes in working capital (ADP 001+002) 011 22.796.529 49.788.977
3 Changes in the working capital (ADP 013 to 016) 012 -3.209.401 -9.641.988
a) Increase or decrease in short-term liabilities 013 -13.764.692 92.099.876
b) Increase or decrease in short-term receivables 014 16.867.632 -121.625.381
c) Increase or decrease in inventories 015 -217.994 -360.161
d) Other increase or decrease in working capital 016 -6.094.347 20.243.678
II Cash from operations (ADP 011+012) 017 19.587.128 40.146.989
4 Interest paid 018 -1.226.437 -661.415
5 Income tax paid 019 -358.721 -391.766
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019) 020 18.001.970 39.093.808
Cash flow from investment activities
1 Cash receipts from sales of fixed tangible and intangible assets 021 149.873 112.945
2 Cash receipts from sales of financial instruments 022 0 0
3 Interest received 023 0 0
4 Dividends received 024 0 0
5 Cash receipts from repayment of loans and deposits 025 0 0
6 Other cash receipts from investment activities 026 72.879 451
III Total cash receipts from investment activities (ADP 021 to 026) 027 222.752 113.396
1 Cash payments for the purchase of fixed tangible and intangible assets 028 -3.309.543 -10.446.017
2 Cash payments for the acquisition of financial instruments 029 0 0
3 Cash payments for loans and deposits for the period 030 0 0
4 Acquisition of a subsidiary, net of cash acquired 031 -373.535 -35.439.879
5 Other cash payments from investment activities 032 0 -7.000
IV Total cash payments from investment activities (ADP 028 to 032) 033 -3.683.078 -45.892.896
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033) 034 -3.460.326 -45.779.500
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 036 100.910.600 0
3 Cash receipts from credit principals, loans and other borrowings 037 48.947.806 300.000
4 Other cash receipts from financing activities 038 249.865 111.286
V Total cash receipts from financing activities (ADP 035 to 038) 039 150.108.271 411.286
1 Cash payments for the repayment of credit principals, loans and other borrowings and debt financial
instruments
040 -61.078.195 -7.121.576
2 Cash payments for dividends 041 -1.538.880 -9.713.775
3 Cash payments for finance lease 042 -27.074 -28.419
4 Cash payments for the redemption of treasury shares and decrease in initial (subscribed) capital 043 -3.045.156 -3.802.179
5 Other cash payments from financing activities 044 -3.966.961 -4.998.692
VI Total cash payments from financing activities (ADP 040 to 044) 045 -69.656.266 -25.664.641
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045) 046 80.452.005 -25.253.355
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 94.993.649 -31.939.047
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD
F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD(ADP 048+049)
049
050
16.032.199
111.025.848
126.919.757
94.980.710
UNAUDITED FINANCIAL STATEMENTS OF SPAN GROUP AND SPAN D.D. / JANUARY − SEPTEMBER 2022

STATEMENT OF CHANGES IN EQUITY Span d.d.

Attributable to owners of the parent
Fair value of financial
Hedge of a net inve
Exchange rate
AOP
"Minority (non-controlling)
Treasury shares
assets through
Item
Total capital and reserves
code
Initial
Reserves for treasury
Cash flow hedge -
stment in a foreign
Other fair value
differences from
Retained profit / loss
Profit/loss for the
Total attributable to owners of
interest"
(subscribed) capital Capital reserves
Legal reserves
and holdings
Statutory reserves
Other reserves
Revaluation reserves
other comprehensive
shares
effective portion
operation - effective
reserves
translation of foreign
brought forward
business year
the parent
(deductible item)
income (available
portion
operations
for sale)
18 (3 do 6 - 7
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
19
20 (18+19)
+ 8 do 17)
Previous period
1 Balance on the first day of the previous business year
01
19.600.000
0
8.072.428
28.000.000
28.000.000
0
0
8.451.348
0
0
0
0
0
17.374.032
6.495.617
59.993.425
0
59.993.425
2 Changes in accounting policies
02
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
3 Correction of errors
03
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 previous business year (restated) (ADP 01 to 03)
04
19.600.000
0
8.072.428
28.000.000
28.000.000
0
0
8.451.348
0
0
0
0
0
17.374.032
6.495.617
59.993.425
0
59.993.425
5 Profit/loss of the period
05
0
0
0
0
0
0
0
0
0
0
0
0
0
0
19.359.494
19.359.494
0
19.359.494
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
0
0
7 Changes in revaluation reserves of fixed tangible and intangible assets
07
0
0
0
0
0
0
0
7.503.056
0
0
0
0
0
454.731
0
7.957.787
0
7.957.787
8 Gains or losses from subsequent measurement of financial assets at fair value
08
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
through other comprehensive income (available for 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
0
0
10 Profit or loss arising from effective hedge of a net investment in a foreign
10
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
operation
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
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
0
0
13 Other changes in equity unrelated to owners
13
0
-19.328.200
0
0
0
0
0
0
0
0
0
0
0
19.328.200
0
0
0
0
14 Tax on transactions recognised directly in equity
14
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
15 Decrease in initial (subscribed) capital (other than arising from the
15
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
pre-bankruptcy settlement procedure or from the reinvestment of profit)
16 Decrease in initial (subscribed) capital arising from the pre-bankruptcy
16
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
settlement procedure
17 Decrease in initial (subscribed) capital arising from the reinvestment of profit
17
0
0
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
0
0
19 Payments from members/shareholders
19
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
20 Payment of share in profit/dividend
20
0
0
0
0
0
0
0
0
0
0
0
0
0
-1.538.880
0
-1.538.880
0
-1.538.880
21 Other distributions and payments to members/shareholders
21
0
98.411.769
-984.470
-27.384.441
-27.384.441
0
0
0
0
0
0
0
0
9.717.458
0
107.144.757
0
107.144.757
22 Transfer to reserves according to the annual schedule
22
0
0
324.781
0
0
0
0
0
0
0
0
0
0
6.170.836
-6.495.617
0
0
0
23 Increase in reserves arising from the pre-bankruptcy settlement procedure
23
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
24 Balance on the last day of the previous business year reporting period
24
19.600.000
79.083.569
7.412.739
615.559
615.559
0
0
15.954.404
0
0
0
0
0
51.506.377
19.359.494
192.916.583
0
192.916.583
(ADP 04 to 23)
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
25
0
-19.328.200
0
0
0
0
0
7.503.056
0
0
0
0
0
19.782.931
0
7.957.787
0
7.957.787
(ADP 06 to 14)
II COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD (ADP 05+25)
26
0
-19.328.200
0
0
0
0
0
7.503.056
0
0
0
0
0
19.782.931
19.359.494
27.317.281
0
27.317.281
III TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD RECOGNISED
27
0
98.411.769
-659.689
-27.384.441
-27.384.441
0
0
0
0
0
0
0
0
14.349.414
-6.495.617
105.605.877
0
105.605.877
DIRECTLY IN EQUITY (ADP 15 to 23)
Current period
1 Balance on the first day of the current business year
28
19.600.000
79.083.569
7.412.739
615.559
615.559
0
0
15.954.404
0
0
0
0
0
51.506.377
19.359.494
192.916.583
0
192.916.583
2 Changes in accounting policies
29
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
3 Correction of errors
30
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) (AOP 28 to 30)
31
19.600.000
79.083.569
7.412.739
615.559
615.559
0
0
15.954.404
0
0
0
0
0
51.506.377
19.359.494
192.916.583
0
192.916.583
5 Profit/loss of the period
32
0
0
0
0
0
0
0
0
0
0
0
0
0
0
38.997.956
38.997.956
0
38.997.956
6 Exchange rate differences from translation of foreign operations
33
0
0
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
34
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
8 Gains or losses from subsequent measurement of financial assets at fair value
35
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
through other comprehensive income (available for sale)
9 Profit or loss arising from effective cash flow hedge
36
0
0
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
37
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
operation
11 Share in other comprehensive income/loss of companies linked by virtue of
38
0
0
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
39
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
13 Other changes in equity unrelated to owners
40
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
14 Tax on transactions recognised directly in equity
41
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
15 Decrease in initial (subscribed) capital (other than arising from the pre-bankrupt
42
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
cy settlement procedure or from the reinvestment of profit)
16 Decrease in initial (subscribed) capital arising from the pre-bankruptcy
43
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
settlement procedure
17 Decrease in initial (subscribed) capital arising from the reinvestment of profit
44
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
18 Redemption of treasury shares/holdings
45
0
0
0
5.842.730
5.842.730
0
0
0
0
0
0
0
0
0
0
0
0
0
19 Payments from members/shareholders
46
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
20 Payment of share in profit/dividend
47
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-9.713.775
-9.713.775
0
-9.713.775
21 Other distributions and payments to members/shareholders
48
0
2.196.677
0
-1.294.171
-1.294.171
0
0
0
0
0
0
0
0
-11.564.359
0
-9.367.682
0
-9.367.682
22 Carryforward per annual plane
49
0
0
0
0
0
0
0
0
0
0
0
0
0
9.645.719
-9.645.719
0
0
0
23 Increase in reserves arising from the pre-bankruptcy settlement procedure
50
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
24 Balance on the last day of the current business year reporting period (ADP
51
19.600.000
81.280.246
7.412.739
5.164.118
5.164.118
0
0
15.954.404
0
0
0
0
0
49.587.737
38.997.956
212.833.082
0
212.833.082
31 to 50)
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
52
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(ADP 33 to 41)
II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP 32 do 52)
53
0
0
0
0
0
0
0
0
0
0
0
0
0
0
38.997.956
38.997.956
0
38.997.956
III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED
54
0
2.196.677
0
4.548.559
4.548.559
0
0
0
0
0
0
0
0
-1.918.640
-19.359.494
-19.081.457
0
-19.081.457
DIRECTLY IN EQUITY (ADP 42 to 50)
for the period from 1.1.2022 to 30.9.2022 u kunama

4. Notes

4.1. Notes accompanying Financial Statements (drawn up for quarterly reporting periods)

Issuer name: Span d.d
Address: Koturaška cesta 47, 10000 Zagreb
OIB: 19680551758
MBS: 080192242
Reporting period: January 1st – September 30th 2022

Notes to the financial statements for nine months of 2022 are included in the Unaudited Business Results of Span Group and Span d.d. for first nine months of 2022., available on Zagreb Stock Exchange website.

Annual Report of Span Group and Span d.d. for 2021 is available on Span d.d. website.

The accounting policies applied in the preparation of the financial statements for the reporting period are the same as in the most recent annual financial statements.

Span d.d. issued corporate guarantees in the amount of HRK 9,445 thousand (of which HRK 170 thousand for affiliated companies), debentures in the amount of HRK 174,028 thousand (of which HRK 10,129 thousand for affiliated companies) and bills of exchange in the amount of HRK 18,065 thousand.

Average number of Span Group employees in the period from 1.1.2022. to 30.09.2022. was 676. The average number of employees of Span d.d. in the period from 1.1.2022. to 30.09.2022. was 518.

In the observed period, the company Span d.d. capitalized labor costs related to the continued development of internally generated intangible assets. The total amount of employee costs during the period, amounts to HRK 105,530 thousand, out of which HRK 103,235 thousand is directly charged to the costs of the period, while HRK 2,295 thousand is capitalized. Capitalized cost is broken down into net salaries (HRK 1,378 thousand), taxes and contributions from salaries (HRK 668 thousand) and contributions to salaries (HRK 249 thousand).

In the observed period, Span Group capitalized labor costs related to the continued development of internally generated intangible assets. Total amount personel expensess during the period amounts to HRK 121,243 thousand, of which the amount of HRK 118,449 thousand is directly charged to the expenses of the period, while HRK 2,793 thousand is capitalized. Capitalized cost is broken down into net salaries (HRK 1,707 thousand), taxes and contributions from salaries (HRK 818 thousand) and contributions to salaries (HRK 268 thousand).

Deferred tax assets of Span Group as at 31 December 2021 amount to HRK 7,729 thousand, while for Span d.d. it amounts to HRK 6,952 thousand. In Span Group, the decrease in the amount of HRK 992 thousand relates to the recognition of deferred tax assets due to losses incurred by certain af-

filiates and the decrease in the amount of HRK 855 thousand in the reporting period relates to the recognition of deferred tax assets on the basis of tax relief based on investment aid received from the Ministry of the Economy,Entrepreneurship and Crafts for Span dd.

Span d.d. holds a participating stake in Trilix d.o.o. Zagreb and Bonsai d.o.o. Zagreb. The amount of capital that Span d.d. holds in Trilix d.o.o. amounts to 60%, ie HRK 1,037 thousand, the amount of total capital and reserves of Trilix d.o.o. amounts to HRK 1,729 thousand, and the profit in the business year 2021 amounts to HRK 36 thousand. The amount of capital that Span d.d. holds in Bonsai d.o.o. amounts to 70%, or HRK 1,000 thousand, the amount of total capital and reserves of Bonsai d.o.o. amounts to HRK 1,429 thousand, and the profit in the business year 2021 amounts to HRK 618 thousand.

Companies where Span d.d. has unlimited liability are: Span d.o.o. Ljubljana, Span IT Ltd. London, Span USA Inc. Chicago, Span LLC Baku, Span GmbH Munich, LLC Span Kiev, SPAN SWISS AG Zurich, SPAN-IT SRL Moldova, Ekobit d.o.o. Zagreb and Span Cyber Security Center d.o.o. Zagreb.

5. Statement on responsibility for compiling a report in the observed period

Statement

Unaudited financial statements of Span d.d. and Span Group for the period from January 1st to September 30th, 2022, shown to be fair and truthful in accordance with International Financial Reporting Standards which have been consistently applied in relation to previous years.

All materially significant transactions were accordingly recorded in the accounting records, which were the basis of the financial statements. They give a truthful and complete overview of assets and obligations, the financial position and business activities of the Span d.d. and Span Group.

Nikola Dujmović Predsjednik Uprave, Span d.d

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