AD Plastik d.d.

Annual Report • Feb 15, 2016

2015

ANNUAL REPORT

BY MANAGEMENT OF AD PLASTIK GROUP AND THE COMPANY AD PLASTIK INC. SOLIN

TEMPORARY UNAUDITED FINANCIAL STATEMENTS

D

C

AD PLASTIK INC.

Contents

A	Management Report of AD Plastik Group and the Company AD Plastik Inc. Solin for the period 01.01.2015 - 31.12.2015		A 4
	Sales, EBITDA and net profit		5
	Comment by Marinko Došen, President of the Management Board		6
	Key indicators of AD Plastik Group for 2015		7
	Financial results in 2015		7
	Sales revenue per sales markets of AD Plastik Group, without affiliated companies		8
	AD Plastik Group with consolidation of the corresponding ownership parts in affiliated companies		9
	Sales revenue per sales markets of AD Plastik Group Changes in balance sheet positions		9 10
B	Financial statement of AD Plastik Group		B 11
	Balance sheet		13
	Profit and loss account		15
	Cash flow (indirect method)		17
	Statement of changes in equity		18
C	Financial statement of the company AD Plastik		19 C
	Balance sheet		21
	Profit and loss account		23
	Cash flow (indirect method)		25
	Statement of changes in equity		26
D	Management's statement of responsibility		27
			D
	Your needs. Our drive.	TEMPORARY UNAUDITED FINANCIAL STATEMENTS	3

A

C

Management Report

of AD Plastik Group and the Company AD Plastik Inc. Solin

Sales, EBITDA and net profit	5
Comment by Marinko Došen, President of the Management Board	6
Key indicators of AD Plastik Group for 2015	7
Financial results in 2015	7
Sales revenue per sales markets of AD Plastik Group, without affiliated companies	8
AD Plastik Group with consolidation of the corresponding ownership parts in affiliated companies	9
Sales revenue per sales markets of AD Plastik Group	9
Changes in balance sheet positions	10

C

Sales, EBITDA and net profit of AD Plastik Group

CAD PLASTIK GROUP

Comment by Marinko Došen, President of the Management Board

In 2015 we made a significant turnaround in managing AD Plastik and good business results that we have achieved confirm correctness of the chosen path. We will continue to implement the changes we had started during the last year with a goal to increase competitiveness, efficiency and profitability, and in order to meet challenges of a very demanding market of the automotive industry.

This is confirmed by the facts that despite a complex and challenging situation in Russia we have increased the operating revenues of AD Plastik Group by 15% compared to the same period in 2014, while the expenses of the Group have increased only by 9%. This increased profitability resulted in the EBITDA margin of 11,8%, which in 2014 amounted to 6,2%. Cash flow optimization measures have resulted in reduction of the company's debt level by 69,6 million kunas and in improved liquidity of the company.

The main objective for 2016 is further growth of sales revenue, increase in EBITDA margin to 12% and continued reduction of loan liabilities according to business plan for 2016. In order to improve profitability and to achieve planned business results for 2016, our key objectives are growth in existing markets, improvement of efficiency and strengthening our financial stability, as well as opening new business markets and increasing share value to the satisfaction of our shareholders. Your needs. Our drive. TEMPORARY UNAUDITED FINANCIAL STATEMENTS 6MANAGEMENT REPORT

Marinko Došen President of the Management Board

Key indicators of AD Plastik Group for 2015

	Key indicators	2014	2015	Index
	Operating income (in thsd. of kuna)	899.865	1.033.078	115
	EBITDA (in thousands of kuna)	55.429	122.375	221
	Net profit (in thousands of kuna)	4.917	44.274	900
	NFD	485.258	411.105	85
	% EBITDA / Operating revenue	6,2%	11,8%
	Financial results in 2015
	In the reporting period AD Plastik Group, which consists of AD Plastik Inc., -
	Croatia, ADP Ltd. - Serbia, AD Plastik Ltd. - Slovenia, AO AD Plastik - Russia, ZAO AD Plastik Kaluga - Russia (hereinafter: ADP Group), recorded a total op erating revenue greater than one billion kunas.
15% Operating revenue increasing	The operating results in 2015 demonstrate achievement of the goals set by the Company´s Management Board for the mentioned year, meaning an in crease in operating revenue in the amount of 15% on the level of ADP Group. Operating expenses have increased by 9%. In the reporting period an EBITDA margin in the amount of 11,8% or EBITDA in the amount of 122,4 million kunas has been achieved. Net profit of ADP Group increased from 4,9 million kunas in 2014 to 44,3 million kunas in 2015.
9% Operating expenses increasing	The credit debt of ADP Group on 31.12.2015 amounted to 423,5 million kunas, which represents a decrease in loan obligations of 69,6 million kunas com pared to the end of the previous year which has significantly improved the liquidity indicators.
	We are pleased to say that we have achieved business goals set for 2015: increasing profitability of ADP Group, improving overall cost efficiency, sales revenue growth and increase of capacity utilization in Croatia and Serbia.
Your needs. Our drive.		TEMPORARY UNAUDITED FINANCIAL STATEMENTS

Financial results in 2015

A

CONTENTS

C

A

EU and Serbian markets

of AD Plastik Group

• Revenue increase of 37,8% for ADP Group on the market of EU and Serbia, while the EU car market recorded an increase of approximately 9%.

Compared to the year 2014 EU and Serbian markets recorded a revenue growth of 37,8% in 2015. Growth of sales in relation to the previous year is a result of further increase in utilization of production capacity in Croatia with regard to project Edison and other projects for customers PSA, Ford at the plants in Solin and Zagreb, Croatia and Mladenovac, Serbia.

Additionally, regarding the Serbian plant, in relation to the same period last year, the sales assortment had been expanded and the delivery of grab handles and blow molded products to new destinations in Italy and Poland has begun.

Russian market (subsidiaries)

• Revenue decrease of 21,8% for ADP Group in Russia, while the Russian car market recorded a decrease of 35,7% in the same period

The total production and sales of the company in Vintay (Togliatti) and Kaluga is intended for the market in Russia. The decrease of the total automobile market in Russia in the amount of 37,5% in 2015 is significantly higher than the decline in sales in our plants, due to a lower decline of production volume in the plants of manufacturers reagarding the model of the cars for which we produce the parts. To that we must also add the new projects whose production has started this year – Renault Duster phase 2, the new Qashqai and Lada Vesta, whose sales for now is show good results on the Russian market, as well as getting nomination for new deals with Ford.

Solin, Zagreb, Mladenovac

Vintay (Togliatti), Kaluga

C

Affiliated companies

Euro APS, FADP Holding

Affiliated companies are the Romanian company EURO APS and the company FADP Holding France (with plant in Russia). In the last quarter of 2015 the significant business changes have not been recorded regarding the affiliated companies.

The profit and loss account of ADP Group

	Production capacity of the Romanian company is fully utilized. The largest part of deliveries is related to the serial deliveries for the plant Dacia in Roma nia, while the smaller part of the deliveries is related to the plants in Morocco, Algeria, Iran and other markets where the models Logan, Sandero and Duster are being produced.
	Sales performance in Russian company showed lower results compared to the same period last year in accordance with the trends of the Russian mar ket. The main customers are Ford, Nissan and Hyundai.
	With the aim of obtaining a clearer picture of business of ADP Group, we have created an abbreviated consolidated profit and loss account of ADP Group with the consolidated profit and loss account for 2014 and 2015 of ADP Group, with consolidated profit and loss account of affiliated companies Euro APS,
	Romania and FADP, Russia, in which AD Plastik Inc. has 50%, and 40% of own ership respectively.
	The profit and loss account of ADP Group with consolidation of the corresponding ownership parts in EURO APS and FADP for 2014 and 2015 in thousands of kunas
	Positions	2014	2015	Index
	OPERATING REVENUES	2014	2015	Index
	Sales revenue	1.357.826	1.444.057	106
	Other sales revenue	37.103	25.976	70
	OPERATING EXPENSES	1.347.610	1.362.987	101
	Material costs	825.285	858.026	104
	Staff costs	225.203	230.491	102
	Amortization	75.761	87.019	115
	Other costs	221.361	187.451	85
	FINANCIAL REVENUE FINANCIAL EXPENSES	33.491 69.091	120.918 171.136	361 248
	TOTAL REVENUE	1.428.420	1.590.951	111
	TOTAL EXPENSES	1.416.203	1.534.123	108
	Profit before tax	12.218	56.827	465
	Profit tax	7.301	12.553	172
The affiliated companies have no fi nancial loan liabilities towards external entities, other than loan liabilities for the loans received from the owners. On 31.12.2015 the Group had 2.910 em ployees, out of that 1.203 in the parent	PROFIT OF THE PERIOD	4.917	44.274	900

C

Changes in balance sheet positions

Regarding the balance positions of the Group in relation to 31.12.2014, the greatest changes have been noted on the following positions:

• • (AOP 006) Goodwill (decrease of 10,6 million HRK) due to the calculation / testing the value of Goodwill
• • (AOP 012 and AOP 017) Buildings and Tangible assets in preparation (increase of 17,7 million HRK and decrease of 68,7 million HRK) – mainly due to the construction and the equipment of the new paint shop
• • (AOP 045) Trade receivables (decrease of 63,5 million HRK) largely due to the finalization of the projects and payment of developmental activities
• • (AOP 059) Prepaid expenses and accrued income (decrease of 33,1 million HRK) - due to the sales of finished tools
• • (AOP 086 and 096) Long-term and Short-term debts towards banks and other financial institutions (net effect of decrease of 69,6 million HRK) – regular loan payments
• • (AOP 088 and 098) Long-term and Short-term trade payables (decrease of 74,8 million HRK) – due to the completion of a larger part of investments
• • (AOP 099) Liabilities for advances (decrease of 33,6 million HRK) due to the sales of finished tools

The results of the affiliated companies EAPS Romania and FADP Holding France are included in the result of the Group under the equity method.

Financial statement

of AD Plastik Group

Balance sheet	13
Profit and loss account	15
Cash flow (indirect method)	17
Report on changes to capital	18

C

B

A

CONTENTS

AD PLASTIK GROUP

Appendix 1 Annual financial statement

Company: AD Plastik Group

Annual financial statement of the entrepreneur - GFI-POD

Register number (MB):		03440494
Entity register number (MBS):		060007090
Personal identification number (PIN):		48351740621
Issuing company:		AD PLASTIK d.d.
Post code and place:	21210	Solin
Street and house number:		Matoševa 8
E-mail address:		adplastik@adplastik.hr
Internet address:		www.adplastik.hr
Municipality/city code and name:	406	Solin
County code and name:	17	Splitsko-dalmatinska
No. of employees (at the end of the trimester):		2.910
Consolidated report:	DA	NCA code:	2932
Names of consolidation subjects (according to IMSF):	Seat:		REG. NO.:
AD PLASTIK d.d.	Solin, Hrvatska		3440494
AO AD PLASTIK		Samara, Ruska Federacija	1036300221935
AD PLASTIK d.o.o.		Novo Mesto, Slovenija	1214985000
ZAO AD PLASTIK KALUGA		Kaluga, Ruska Federacija	1074710000320
ADP d.o.o.		Mladenovac, Srbija	20787538
Bookkeeping service:
Contact person:	Marica Jakelić
(only the name and surname of the contact person to be entered)
Telephone:	021/206-660
Fax:	021/275-660
E-mail address:		marica.jakelic@adplastik.hr
Name and surname:	Katija Klepo
(person authorised for representation)
Documentation for publishing:
1. Unaudited annual Financial statements
2. Annual report
3. Statement of the person responsible for compiling financial statements

A

Balance sheet on 31.12.2015.

Company: AD Plastik Group

	Item 1	AOP ind. 2	Preceding year 3	Current year 4
ASSETS
A	RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID	001
B	FIXED ASSETS (003+010+020+029+033)	002	1.091.023.928	999.646.237
	I. Intangible assets (004 up to 009)	003	152.137.861	140.252.321
	1 Development costs	004	45.408.879	77.599.506
	2 Concessions, patents, licenses, trademarks, softwares and other rights	005	4.229.375	3.233.599
	3 Goodwill	006	25.389.920	14.739.899
	4 Advances for purchase of intangible assets	007	0
	5 Intangible assets in preparation	008	71.445.025	41.040.678
	6 Other intangible assets	009	5.664.662	3.638.639
	II. Tangible assets (011 up to 019)	010	755.636.053	686.848.861
	1 Land	011	142.392.044	141.133.105
	2 Buildings	012	235.692.502	253.378.272
	3 Plants and machinery	013	266.122.878	261.148.772
	4 Tools, plant & office inventory, furniture & transport means	014	16.737.211	14.442.124
	5 Biological assets	015	0
	6 Payments on account for tangible assets	016	7.873.562	23.485
	7 Tangible assets in preparation	017	85.450.223	16.723.102
	8 Other tangible assets	018	1.367.633	0
	9 Investment in real estate	019
	III. Fixed financial assets (021 up to 028)	020	148.428.985	130.283.258
	1 Shares in affiliated undertakings	021
	2 Loans to affiliated undertakings	022
	3 Participating interests (shares)	023	92.666.032	82.699.375
	4 Given loans to companies in which exist participating interests	024	44.155.524	37.733.976
	5 Investments in securities	025	63.855	61.700
	6 Other loans, deposits etc	026	11.543.574	9.788.207
	7 Other fixed financial assets	027
	8 Investment stated in equity method	028
	IV. Receivables (030 up to 032)	029	8.459.021	8.569.163
	1 Receivables from associated undertakings	030
	2 Receivables from sales on credit	031
	3 Other receivables	032	8.459.021	8.569.163
	V. V. Deffered tax assets	033	26.362.008	33.692.635
C	CURRENT ASSETS (035+043+050+058)	034	370.459.572	314.359.077
	I. Inventory (036 up to 042)	035	94.314.949	104.189.113
	1 Materials and supplies	036	67.176.173	67.708.796
	2 Work in progress	037	6.646.583	4.926.609
	3 Finished goods	038	18.787.006	17.609.733
	4 Commercial goods	039	1.705.187	13.943.975
	5 Advances for inventories	040
	6 Long term assets held for sale	041
	7 Biological assets	042
	II. Receivables (044 up to 049)	043	255.937.108	193.175.407
	1 Receivables from associated undertakings	044	0
	2 Trade receivables	045	201.714.508	138.184.616
	3 Receivables from participating companies	046	5.693.529	14.759.233
	4 Receivables from employees and members of the business	047	482.178	363.704
	5 Receivables from government and other institutions	048	18.097.415	7.553.378
	6 Other receivables	049	29.949.478	32.314.476
	III. Current financial assets (051 up to 057)	050	12.401.924	4.615.737
	1 Shares in affiliated undertakings	051
	2 Loans to affiliates	052
	3 Participating interests (shares)	053
	4 Given loans to companies in which exist participating interests	054
	5 Investments in to securities	055
	6 Other loans, deposits etc	056	3.209.419	4.615.737
	7 Other financial assets	057	9.192.505	0
	IV. Cash at bank and in hand	058	7.805.591	12.378.819
D	PREPAYMENT AND ACCRUED INCOME	059	85.289.203	52.235.272
E	TOTAL ASSETS (001+002+034+059)	060	1.546.772.703	1.366.240.586

F OUT-OF-BALANCE ITEMS 061 18.790.339 27.573.677

A

Balance sheet on 31.12.2015.

Company: AD Plastik Group

	Item	AOP ind.	Preceding year	Current year
	1	2	3	4
LIABILITIES
A	CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	630.631.677	628.826.741
	I. SUBSCRIBED SHARE CAPITAL	063	419.958.400	419.958.400
	II. CAPITAL RESERVES	064	183.513.200	183.483.013
	III. RESERVES FROM GAIN (066+067-068+069+070)	065	32.062.079	31.661.516
	1 Legal reserves	066	6.140.129	6.139.440
	2 Reserves for own shares	067	2.945.290	3.107.594
	3 Own stocks and shares (deductible item)	068	2.945.290	3.107.594
	4 Statutory reserves	069	0	0
	5 Other reserves	070	25.921.950	25.522.076
	IV. REVALUATION RESERVES	071	-22.222.998	-71.147.092
	V. RETAINED EARNINGS OR LOSS BROUGHT FORWARD (073-074)	072	12.397.932	20.596.773
	1 Retained earnings	073	12.397.932	20.596.773
	2 Loss brought forward	074
	VI. CURRENT YEAR PROFIT OR LOSS (076-077)	075	4.929.914	44.276.619
	1 Current year profit	076	4.929.914	44.276.619
	2 Current year loss	077
	VII. MINOR INTEREST	078	-6.850	-2.488
B	PROVISIONS (080 up to 082)	079	6.400.943	8.347.204
	1 Provisions for pensions, severance pay and similar obligations	080	687.919	1.724.443
	2 Provisions for tax liabilities 3 Other provisions	081 082	5.713.024	0 6.622.761
	LONG TERM LIABILITIES (084 up to 092)	083	251.294.635	291.797.270
C	1 Liabilities to related parties	084
	2 Commitments for loans, deposits, etc	085
	3 Liabilities to banks and other financial institutions	086	212.344.188	265.405.847
	4 Liabilities for advances	087
	5 Trade payables	088	26.238.997	26.193.126
	6 Commitments on securities	089
	7 Liabilities to companies in which are participating interests	090
	8 Other long term liabilities	091
	9 Deferred tax liabilities	092	12.711.450	198.297
D	SHORT TERM LIABILITIES (094 do 105)	093	641.580.171	408.457.366
	1 Liabilities to related parties	094
	2 Commitments for loans, deposits, etc	095	4.623.823	1.865.790
	3 Liabilities to banks and other financial institutions	096	280.719.131	158.078.334
	4 Liabilities for advances	097	57.224.240	23.613.455
	5 Trade payables	098	270.424.546	195.705.370
	6 Commitments on securities	099
	7 Liabilities to companies in which are participating interests	100	1.674.486	891.240
	8 Liabilities towards employees	101	10.173.697	9.738.166
	9 Liabilities for taxes, contributions and other benefits	102	11.618.292	14.932.098
	10 Liabilities to share in the result	103
	11 Amount based on fixed assets intended to sale	104
	12 Other short-term liabilities	105	5.121.956	3.632.912
E	DEFERRED PAYMENT OF COSTS AND FUTURE INCOME	106	16.865.277	28.812.005
F	TOTAL LIABILITIES (062+079+083+093+106)	107	1.546.772.703	1.366.240.586
G	OUT-OF BALANCE ITEMS	108	18.790.339	27.573.677
	ADDENDUM TO BALANCE SHEET( filled in by the entrepreneur compiling the consolidated annual financial statement)
A	CAPITAL AND RESERVES
	1 Ascribed to the holders of the parent company capital	109	630.638.527	628.829.229
		110	-6.850	-2.488

A	CAPITAL AND RESERVES
	1 Ascribed to the holders of the parent company capital	109	630.638.527	628.829.229
	2 Ascribed to minority interest	110	-6.850	-2.488

Profit and loss account

Reporting period: 01.01.2015. to 31.12.2015. Company: AD Plastik Group

1 OPERATING TURNOVER (112+113) 1 Income from sales 2 Other operating income OPERATING CHARGES (115+116+120+124+125+126+129+130)	2 111 112 113	3 899.864.755 869.552.759 30.311.996	4 1.033.078.322 1.007.101.963
			25.976.359
	114	903.425.308	983.564.494
1 Changes in the value of inventories of work in progress and finished goods	115	-4.892.500	2.106.858
2 Material charges (117 up to 119)	116	537.354.296	609.237.405
a Costs of raw materials and consumables	117	434.918.119	489.870.372
b Costs of sales	118	36.226.754	52.622.163
c Other external charges	119	66.209.423	66.744.870
3 Staff costs (121 up to 123)	120	163.605.883	171.052.362
a Salaries and wages	121	101.835.592	105.882.417
	122	32.582.907	36.619.724
	123	29.187.384	28.550.221
			72.861.300
			107.300.903
			0
			4.698.307
			16.307.359
			121.812.782
			86.926.699
			26.824.132
			8.061.951
			158.140.031
			103.400.589
			51.953.105
			2.786.337
			42.906.684
			10.934.111
			1.197.797.788
			1.152.638.636
			45.159.152
			45.159.152
			0
			884.957
			44.274.195
			44.274.195
			0
	b Costs of taxes and social security c Duties on wages 4 Depreciation 5 Other costs 6 Impairment (127+128) a Fixed assets (excluding financial assets) b Current assets (excluding financial assets) 7 Provisions 8 Other operating expenses FINANCIAL INCOME (132 up to 136) 1 Interests, exchange rate difference, dividends with affiliates 2 Interests, exchange rate difference, dividends with non-affiliates 3 Part of income from affiliates and participated interests 4 Non-realized financial income 5 Other financial income FINANCIAL CHARGES (138 up to 141) 1 Interests, exchange rate difference, dividends with affiliates 2 Interests, exch. rate difference, dividends with non-affiliates 3 Non-realized financial charges 4 Other financial charges SHARE OF PROFIT FROM ASSOCIATED COMPANIES SHARE OF LOSS FROM ASSOCIATED COMPANIES EXTRAORDINARY – OTHER INCOME EXTRAORDINARY – OTHER CHARGES TOTAL INCOME (111+131+142 + 144) TOTAL CHARGES (114+137+143 + 145) PROFIT OR LOSS BEFORE TAXATION (146-147) 1 Profit before taxation (146-147) 2 Loss before taxation (147-146) PROFIT TAX PROFIT OR LOSS FOR THE PERIOD (148-151) 1 PROFIT FOR THE PERIOD (149-151) 2 LOSS FOR THE PERIOD (151-148)	124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154	58.989.516 133.064.328 0 5.807.502 9.496.283 41.403.273 16.228.732 16.440.142 7.912.164 822.235 65.681.068 5.368.987 56.858.480 3.453.601 40.227.103 7.328.202 981.495.131 976.434.578 5.060.553 5.060.553 0 143.599 4.916.954 4.916.954 0

Profit and loss account Reporting period: 01.01.2015. to 31.12.2015.

Company: AD Plastik Group

Item 1	AOP ind. 2	Preceding year 3	Current year 4
ADDENDUM TO ATS (filled in by the entrepreneur compiling the consolidated annual financial statement)
PROFIT OR LOSS FOR THE CURRENT PERIOD
1 Attributable to equity holders	155	4.929.914	44.276.619
2 Attributable to minority interests	156	-12.960	-2.424
Report for other comprehensive income (only for the taxpayer applying IFRS)
PROFIT OR LOSS FOR THE CURRENT PERIOD (= 152)	157	4.916.954	44.274.195
OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAXATION (159 up to 165)	158	-44.741.550	-56.746.927
1 Exchange differences on translation of foreign operations	159	-107.455.367	-46.942.312
2 Movements in revaluation reserves of fixed and intangible assets	160	62.713.817	-9.804.615
3 Profit or loss from revaluation of financial assets available for sale	161
4 Gains or losses on effective cash flow protection	162
5 Gains or losses on effective hedge of a net investment abroad	163
6 Share of other comprehensive income / loss of associated companies	164
7 Actuarial gains / losses on defined benefit plans	165
TAX ON OTHER COMPREHENSIVE INCOME FOR THE CURRENT PERIOD	166	-12.311.337	-11.317.580
OTHER COMPREHENSIVE NET PROFIT OR LOSS (158-166)	167	-32.430.213	-45.429.347
V. OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD (157+167)	168	-27.513.259	-1.155.152
ADDENDUM to Report for other comprehensive income (filled in by the entrepreneur compiling the consolidated annual financial statement)
OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD
1 Attributable to equity holders	169	-27.495.683	-1.142.281
2 Attributable to minority interests	170	-17.576	-12.871
Your needs. Our drive.		TEMPORARY UNAUDITED FINANCIAL STATEMENTS

VI.	OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD
	1 Attributable to equity holders	169	-27.495.683	-1.142.281
	2 Attributable to minority interests	170	-17.576	-12.871

CONTENTS

Cash flow statement indirect method Reporting period: 01.01.2015. to 31.12.2015.

Company: AD Plastik Group

1 CASH FLOW FROM OPERATING ACTIVITIES		Preceding year
	2	3	4
1 Profit before taxation	001	5.060.553	45.159.152
2 Depreciation	002	58.989.516	72.861.300
3 Increase of current liabilities	003	115.817.380
4 Decrease of current receivables	004	7.650.784	51.612.061
5 Decrease in stocks	005	477.420
6 Other increase of cash flow	006
I. Total increase of cash flow from operating activities (001 - 006)	007	187.995.653	169.632.513
1 Decrease of current liabilities	008		219.229.815
2 Increase of current receivables	009		9.874.164
3 Increase in stocks	010
4 Other decrease of cash flow	011	24.369.361	7.330.627
II. Total decrease of cash flow from operating activities (008 – 011)	012	24.369.361	236.434.606
A1 NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	013	163.626.292	0
A2 NET DECREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	014	0	66.802.094
CASH FLOWS FROM INVESTMENT ACTIVITIES
1 Cash inflows from sale of fixed intangible and tangible assets	015		7.811.432
2 Cash inflows from sale of ownership and debt instruments	016
3 Cash inflows from interest	017	5.787.620	2.466.806
4 Cash inflows from dividends	018	41.227.210	41.736.765
5 Other cash inflows from investment activities	019
III. Total cash inflows from investment activities (015-019)	020	47.014.830	52.015.003
	021	134.441.768
1 Cash expenditures for purchase of fixed tangible and intangible assets
2 Cash expenditures for acquisition of ownership and debt instruments	022
3 Other cash expenditures from investment activities	023
IV. Total cash expenditures from investment activities (021-023)	024	134.441.768	0
B1 NET INCREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (020-024) B2 NET DECREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (024-020) CASH FLOW FROM FINANCIAL ACTIVITIES	025 026	0 87.426.938	52.015.003 0
1 Cash inflows from issuing ownership and debt financial instruments	027
2 Cash inflows from credit principal, debentures, loans and other borrowings	028	80.496.166	56.467.892
3 Other inflows from financial activities	029	8.346.292	9.966.657
V. Total cash inflows from financial activities (027-029)	030	88.842.458	66.434.549
1 Cash expenditures for the payment of credit principal and debentures	031	71.931.450
2 Cash expenditures for the payment of dividends	032	33.342.576
	033
3 Cash expenditures for financial lease 4 Cash expenditures for repurchase of own shares	034
5 Other cash expenditures from financial activities	035	80.905.263	47.074.230
VI. Total cash expenditures from financial activities (031-035)	036	186.179.289	47.074.230
C1 NET INCREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (030-036) C2 NET DECREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (036-030)	037 038	0 97.336.831	19.360.319 0
Total cash flow increase (013-014+025-026+037-038)	039		4.573.228
Total cash flow decrease (014-013+026-025+038-037)	040	21.137.477	0
Cash and cash equivalents at the beginning of the period	041	28.943.068	7.805.591
Cash and cash equivalents increase Cash and cash equivalents decrease	042 043	21.137.477	4.573.228

Statement of changes in equity

Reporting period: 01.01.2015. to 31.12.2015. Company: AD Plastik Group

	Item 1	AOP ind. 2	Preceding year 3	Current year 4	A
1	Subscribed capital	001	419.958.400	419.958.400
2	Capital reserves	002	183.513.200	183.483.013
3	Reserves from profit	003	32.055.229	31.659.028
4	Retained profit or loss carried over	004	12.397.932	20.596.773	MANAGEMENT REPORT
5	Current year profit or loss	005	4.929.914	44.276.619
6	Revalorisation of fixed material assets	006
7	Revalorisation of intangible assets	007
8	Revalorisation of financial assets available for sale	008
9	Other revalorisation	009	-22.222.998	-71.147.092
10	Total equity and reserves (AOP 001-009)	010	630.631.677	628.826.741	B
11	Exchange rate variations from net investments into foreign business operations	011	-107.455.367	-46.942.312
12	Current and deferred taxes (part)	012	12.311.337	11.317.579	AD PLASTIK GROUP
13	Cash flow protection	013
14	Changes in bookkeeping policies	014
15	Correction of significant mistakes from the previous period	015
16	Other changes to capital	016	62.713.817	-9.804.615
17	Total equity increase or decrease (AOP 011 - 016)	017	-32.430.213	-45.429.347	C
17 a	Ascribed to holders of the holders company capital	018	630.638.527	628.829.229	AD PLASTIK INC.
	Data under EOP codes 001 to 009 are entered as balance as at Balance Sheet date.				D
	Your needs. Our drive.			TEMPORARY UNAUDITED FINANCIAL STATEMENTS	18

Financial statement

of the Company AD Plastik

Balance sheet	21
Profit and loss account	23
Cash flow (indirect method)	25
Report on changes to capital	26

C

AD PLASTIK INC.

AD PLASTIK GROUP

A

CONTENTS

Appendix 1 Annual financial statement

Company: AD Plastik d.d.

Annual financial statement of the entrepreneur - GFI-POD

A

on 31.12.2015. Balance sheet Company: AD Plastik d.d.

	Item	AOP ind.	Preceding year	Current year
	1	2	3	4
ASSETS
A	RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID	001
B	FIXED ASSETS (003+010+020+029+033)	002	1.050.229.721	979.182.986
	I. Intangible assets (004 up to 009)	003	95.024.732	99.033.795
	1 Development costs	004	30.072.242	61.519.202
	2 Concessions, patents, licenses, trademarks, softwares and other rights	005	2.084.689	1.214.858
	3 Goodwill	006
	4 Advances for purchase of intangible assets	007
	5 Intangible assets in preparation	008	62.867.801	36.299.735
	6 Other intangible assets	009
	II. Tangible assets (011 up to 019)	010	518.082.265	512.564.057
	1 Land	011	139.976.599	139.976.599
	2 Buildings	012	160.295.250	193.716.584
	3 Plants and machinery	013	141.215.175	153.631.929
	4 Tools, plant & office inventory, furniture & transport means	014	12.924.399	11.308.600
	5 Biological assets	015
	6 Payments on account for tangible assets	016
	7 Tangible assets in preparation	017	63.670.842	13.930.345
	8 Other tangible assets	018
	9 Investment in real estate	019
	III. Fixed financial assets (021 up to 028)	020	235.319.040	185.721.572
	1 Shares in affiliated undertakings	021	44.376.244	41.334.693
	2 Loans to affiliated undertakings	022	83.204.401	75.023.792
	3 Participating interests (shares)	023	51.975.442	21.779.204
	4 Given loans to companies in which exist participating interests	024	44.155.524	37.733.976
	5 Investments in securities	025	63.855	61.700
	6 Other loans, deposits etc	026	11.543.574	9.788.207
	7 Other fixed financial assets	027
	8 Investment stated in equity method	028
	IV. Receivables (030 up to 032)	029	193.060.060	170.236.920
	1 Receivables from associated undertakings	030	184.601.039	161.667.757
	2 Receivables from sales on credit	031
	3 Other receivables	032	8.459.021	8.569.163
	V. V. Deffered tax assets	033	8.743.624	11.626.642
C	CURRENT ASSETS (035+043+050+058)	034	283.474.181	263.743.966
	I. Inventory (036 up to 042)	035	56.881.889	49.475.674
	1 Materials and supplies	036	39.966.197	34.012.457
	2 Work in progress	037	5.011.771	3.421.392
	3 Finished goods	038	11.473.240	9.826.513
	4 Commercial goods	039	430.681	2.215.312
	5 Advances for inventories	040
	6 Long term assets held for sale	041
	7 Biological assets	042
	II. Receivables (044 up to 049)	043	209.072.752	194.791.719
	1 Receivables from associated undertakings	044	16.189.917	50.147.852
	2 Trade receivables	045	154.974.700	98.709.300
	3 Receivables from participating companies	046	3.961.203	12.943.662
	4 Receivables from employees and members of the business	047	412.509	302.213
	5 Receivables from government and other institutions	048	9.344.172	5.368.103
	6 Other receivables	049	24.190.251	27.320.589
	III. Current financial assets (051 up to 057)	050	15.719.018	16.068.690
	1 Shares in affiliated undertakings	051
	2 Loans to affiliates	052	13.415.236	13.368.967
	3 Participating interests (shares)	053
	4 Given loans to companies in which exist participating interests	054
	5 Investments in to securities	055
	6 Other loans, deposits etc	056	2.303.782	2.699.723
	7 Other financial assets	057
	IV. Cash at bank and in hand	058	1.800.522	3.407.883
D	PREPAYMENT AND ACCRUED INCOME	059	62.506.772	36.777.632
E	TOTAL ASSETS (001+002+034+059)	060	1.396.210.674	1.279.704.584
F	OUT-OF-BALANCE ITEMS	061	4.592.542	4.592.542

A

Balance sheet on 31.12.2015.

Company: AD Plastik d.d.

	Item 1	AOP ind. 2	Preceding year 3	Current year 4
	LIABILITIES
A	CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	625.309.099	644.280.944
	I. SUBSCRIBED SHARE CAPITAL	063	419.958.400	419.958.400
	II. CAPITAL RESERVES	064	183.075.797	183.075.797
	III. RESERVES FROM GAIN (066+067-068+069+070)	065	32.050.802	31.650.928
	1 Legal reserves	066	6.128.852	6.128.852
	2 Reserves for own shares	067	2.945.290	3.107.594
	3 Own stocks and shares (deductible item)	068	2.945.290	3.107.594
	4 Statutory reserves	069
	5 Other reserves	070	25.921.950	25.522.076
	IV. REVALUATION RESERVES	071	-22.500.271	-33.971.965
	V. RETAINED EARNINGS OR LOSS BROUGHT FORWARD (073-074)	072	0	12.724.371
	1 Retained earnings	073		12.724.371
	2 Loss brought forward	074
	VI. CURRENT YEAR PROFIT OR LOSS (076-077)	075	12.724.371	30.843.413
	1 Current year profit	076	12.724.371	30.843.413
	2 Current year loss	077
	VII. MINOR INTEREST	078
	PROVISIONS (080 up to 082)	079	5.711.384	7.314.024
	1 Provisions for pensions, severance pay and similar obligations	080	687.919	1.724.443
	2 Provisions for tax liabilities	081
	3 Other provisions	082	5.023.465	5.589.581
	LONG TERM LIABILITIES (084 up to 092)	083	201.376.693	266.018.476
	1 Liabilities to related parties	084
	2 Commitments for loans, deposits, etc 3 Liabilities to banks and other financial institutions	085 086	185.337.723	248.851.917
	4 Liabilities for advances	087
	5 Trade payables	088	15.870.284	16.968.262
	6 Commitments on securities	089
	7 Liabilities to companies in which are participating interests	090
	8 Other long term liabilities	091
	9 Deferred tax liabilities	092	168.686	198.297
	SHORT TERM LIABILITIES (094 do 105)	093	553.536.665	347.742.539
	1 Liabilities to related parties	094	21.649.780	20.090.855
	2 Commitments for loans, deposits, etc	095	1.145.000
	3 Liabilities to banks and other financial institutions	096	252.051.023	138.398.913
	4 Liabilities for advances	097	44.695.880	6.825.390
	5 Trade payables	098	218.273.771	165.469.616
	6 Commitments on securities	099
	7 Liabilities to companies in which are participating interests	100
	8 Liabilities towards employees	101	7.970.896	8.045.263
	9 Liabilities for taxes, contributions and other benefits	102	4.515.656	6.243.491
	10 Liabilities to share in the result	103
	11 Amount based on fixed assets intended to sale	104
	12 Other short-term liabilities	105	3.234.659	2.669.011
	DEFERRED PAYMENT OF COSTS AND FUTURE INCOME	106	10.276.833	14.348.601
	TOTAL LIABILITIES (062+079+083+093+106)	107	1.396.210.674	1.279.704.584
	OUT-OF BALANCE ITEMS	108	4.592.542	4.592.542
	ADDENDUM TO BALANCE SHEET( filled in by the entrepreneur compiling the consolidated annual financial statement)
	CAPITAL AND RESERVES
	1 Ascribed to the holders of the parent company capital	109
	2 Ascribed to minority interest	110

A	CAPITAL AND RESERVES
	1 Ascribed to the holders of the parent company capital	109
	2 Ascribed to minority interest	110

Profit and loss account

Reporting period: 01.01.2015. to 31.12.2015. Company: AD Plastik Group

1 OPERATING TURNOVER (112+113) 1 Income from sales	2 111	3	4
		617.083.601	768.263.794
	112	598.399.236	753.758.879
2 Other operating income	113	18.684.365	14.504.915
OPERATING CHARGES (115+116+120+124+125+126+129+130)	114	596.096.147	733.628.610
	115	-3.573.132	3.237.105
	116	368.106.822	478.295.829
	117	270.684.458	366.308.626
	118	53.246.735	56.198.938
	119	44.175.629	55.788.265
	120	97.937.515	119.462.491
	121	58.762.509	71.677.494
	122	24.484.379	29.865.623
	123	14.690.627	17.919.374
	124	33.300.760	42.886.044
	125	89.189.231	81.453.775
	126	0	0
	127
	128
	129	5.786.782	4.273.438
	130	5.348.169	4.019.928
FINANCIAL INCOME (132 up to 136)	131	64.007.086	64.418.941
	132	5.693.053	5.330.327
			9.127.022
			49.961.592
			68.210.712
			1.064.933
			31.097.603
			33.261.839
			2.786.337
			832.682.735
			801.839.322
			30.843.413
			30.843.413
			0
			30.843.413
			30.843.413
2 LOSS FOR THE PERIOD (151-148)	154	0	0
	1 Changes in the value of inventories of work in progress and finished goods 2 Material charges (117 up to 119) a Costs of raw materials and consumables b Costs of sales c Other external charges 3 Staff costs (121 up to 123) a Salaries and wages b Costs of taxes and social security c Duties on wages 4 Depreciation 5 Other costs 6 Impairment (127+128) a fixed assets (excluding financial assets) b current assets (excluding financial assets) 7 Provisions 8 Other operating expenses 1 Interests, exchange rate difference, dividends with affiliates 2 Interests, exchange rate difference, dividends with non-affiliates 3 Part of income from affiliates and participated interests 4 Non-realized financial income 5 Other financial income FINANCIAL CHARGES (138 up to 141) 1 Interests, exchange rate difference, dividends with affiliates 2 Interests, exchange rate difference, dividends with non-affiliates 3 Non-realized financial charges 4 Other financial charges SHARE OF PROFIT FROM ASSOCIATED COMPANIES SHARE OF LOSS FROM ASSOCIATED COMPANIES EXTRAORDINARY – OTHER INCOME EXTRAORDINARY – OTHER CHARGES TOTAL INCOME (111+131+142 + 144) TOTAL CHARGES (114+137+143 + 145) PROFIT OR LOSS BEFORE TAXATION (146-147) 1 Profit before taxation (146-147) 2 Loss before taxation (147-146) PROFIT TAX PROFIT OR LOSS FOR THE PERIOD (148-151) 1 PROFIT FOR THE PERIOD (149-151)	133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153	9.414.988 48.899.045 72.126.570 149.550 32.698.010 36.777.000 2.502.010 681.090.687 668.222.717 12.867.970 12.867.970 0 143.599 12.724.371 12.724.371

Profit and loss account Reporting period: 01.01.2015. to 31.12.2015.

Company: AD Plastik Group

Item	AOP ind.	Preceding year	Current year
1	2	3	4

ADDENDUM TO ATS (filled in by the entrepreneur compiling the consolidated annual financial statement)

XIV.	PROFIT OR LOSS FOR THE CURRENT PERIOD
	1 Attributable to equity holders	155
	2 Attributable to minority interests	156

	Report for other comprehensive income (only for the taxpayer applying IFRS)
I.	PROFIT OR LOSS FOR THE CURRENT PERIOD (= 152)	157	12.724.371	30.843.413
II.	OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAXATION (159 up to 165)	158	-40.884.358	-14.267.032
	1 Exchange differences on translation of foreign operations	159	-40.884.358	-14.267.032
	2 Movements in revaluation reserves of fixed and intangible assets	160
	3 Profit or loss from revaluation of financial assets available for sale	161
	4 Gains or losses on effective cash flow protection	162
	5 Gains or losses on effective hedge of a net investment abroad	163
	6 Share of other comprehensive income / loss of associated companies	164
	7 Actuarial gains / losses on defined benefit plans	165
III.	TAX ON OTHER COMPREHENSIVE INCOME FOR THE CURRENT PERIOD	166	-8.176.872	-2.853.406
IV.	OTHER COMPREHENSIVE NET PROFIT OR LOSS (158-166)	167	-32.707.486	-11.413.626
V.	V. OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD (157+167)	168	-19.983.115	19.429.787
	ADDENDUM to Report for other comprehensive income (filled in by the entrepreneur compiling the consolidated annual financial statement)
VI.	OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD
	1 Attributable to equity holders	169
	2 Attributable to minority interests	170
	Your needs. Our drive.		TEMPORARY UNAUDITED FINANCIAL STATEMENTS		24

VI.	OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD
	1 Attributable to equity holders	169
	2 Attributable to minority interests	170

A

CONTENTS

AD PLASTIK GROUP

Cash flow statement indirect method Reporting period: 01.01.2015. to 31.12.2015.

Company: AD Plastik Group

1	2	Preceding year 3	Current year 4
CASH FLOW FROM OPERATING ACTIVITIES
1 Profit before taxation	001	12.867.970	30.843.413
2 Depreciation	002	33.300.760	42.886.044
3 Increase of current liabilities	003	174.879.141
4 Decrease of current receivables	004	60.369.925
5 Decrease in stocks	005		7.406.215
6 Other increase of cash flow	006		22.823.140
I. Total increase of cash flow from operating activities (001 - 006)	007	281.417.796	103.958.812
1 Decrease of current liabilities	008		86.467.608
2 Increase of current receivables	009		4.193.398
3 Increase in stocks	010	19.530.604
4 Other decrease of cash flow	011	201.273.283	2.883.018
II. Total decrease of cash flow from operating activities (008 – 011)	012	220.803.887	93.544.024
A1 NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	013	60.613.909	10.414.788
A2 NET DECREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	014	0	0
CASH FLOWS FROM INVESTMENT ACTIVITIES
1 Cash inflows from sale of fixed intangible and tangible assets	015
2 Cash inflows from sale of ownership and debt instruments	016
3 Cash inflows from interest	017	5.787.620	2.466.806
4 Cash inflows from dividends	018	41.227.210	41.736.765
5 Other cash inflows from investment activities	019
III. Total cash inflows from investment activities (015-019)	020	47.014.830	44.203.571
1 Cash expenditures for purchase of fixed tangible and intangible assets	021	87.005.634	41.376.899
2 Cash expenditures for acquisition of ownership and debt instruments	022
	023
3 Other cash expenditures from investment activities
IV. Total cash expenditures from investment activities (021-023)	024	87.005.634	41.376.899
B1 NET INCREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (020-024)	025	0	2.826.672
B2 NET DECREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (024-020)	026	39.990.804	0
1 Cash inflows from issuing ownership and debt financial instruments	027
2 Cash inflows from credit principal, debentures, loans and other borrowings	028	75.940.846	80.649.635
3 Other inflows from financial activities	029	45.318.738	33.239.944
V. Total cash inflows from financial activities (027-029)	030	121.259.584	113.889.579
1 Cash expenditures for the payment of credit principal and debentures	031	47.829.044	113.652.110
2 Cash expenditures for the payment of dividends	032	33.342.576
3 Cash expenditures for financial lease	033
4 Cash expenditures for repurchase of own shares	034
5 Other cash expenditures from financial activities	035	73.441.596	11.871.568
VI. Total cash expenditures from financial activities (031-035)	036	154.613.216	125.523.678
C1 NET INCREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (030-036)	037	0	0
C2 NET DECREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (036-030)	038	33.353.632	11.634.099
Total cash flow increase (013-014+025-026+037-038)	039		1.607.361
Total cash flow decrease (014-013+026-025+038-037)	040	12.730.527	0
Cash and cash equivalents at the beginning of the period	041	14.531.049	1.800.522
Cash and cash equivalents increase	042		1.607.361
CASH FLOW FROM FINANCIAL ACTIVITIES Cash and cash equivalents decrease Cash and cash equivalents at the end of the period	043 044	12.730.527 1.800.522	3.407.883

Statement of changes in equity

Reporting period: 01.01.2015. to 31.12.2015. Company: AD Plastik Group

Item 1	AOP ind. 2	Preceding year 3	Current year 4	A
1 Subscribed capital	001	419.958.400	419.958.400
2 Capital reserves	002	183.075.797	183.075.797
3 Reserves from profit	003	32.050.802	31.650.928
4 Retained profit or loss carried over	004		12.724.371	MANAGEMENT REPORT
5 Current year profit or loss	005	12.724.371	30.843.413
6 Revalorisation of fixed material assets	006
7 Revalorisation of intangible assets	007
8 Revalorisation of financial assets available for sale	008
9 Other revalorisation	009	-22.500.271	-33.971.965
10 Total equity and reserves (AOP 001-009)	010	625.309.099	644.280.944	B
11 Exchange rate variations from net investments into foreign business operations	011	-40.884.358	-14.267.032
12 Current and deferred taxes (part)	012	8.176.872	2.853.406	AD PLASTIK GROUP
13 Cash flow protection	013
14 Changes in bookkeeping policies	014
15 Correction of significant mistakes from the previous period	015
16 Other changes to capital	016
17 Total equity increase or decrease (AOP 011 - 016)	017	-32.707.486	-11.413.626	C
17 a Ascribed to holders of the holders company capital	018			AD PLASTIK INC.
17 b Ascribed to minority interest	019
				D
Your needs. Our drive.		TEMPORARY UNAUDITED FINANCIAL STATEMENTS		26

Management's statement D of responsibility

C

AD PLASTIK GROUP

A

CONTENTS

C

D

Solin, February 2016

Management´s Statement of Responsibility

The financial statements of AD Plastik Group and the company AD Plastik Inc. Solin are prepared in accordance with the International Financial Reporting Standards (IFRS) and the Croatian Law on Accounting.

The consolidated financial statements of AD Plastik Group and the financial statements of the company AD Plastik Inc. for the period from January 1 to September 30, 2015, give a complete and true review of the assets and liabilities, profit and loss, financial position and business activities of the issuers and companies included in the consolidation as a whole. Your needs. Our drive. TEMPORARY UNAUDITED FINANCIAL STATEMENTS 28MANAGEMENT REPORT

The management report for the period until December 31, 2015, contains an accurate and true display of the development and results of the business activities of the Company with a description of the most significant risks and uncertainties to which the Company is exposed.

President of the Management Board

Member of the Management Board for finance and accounting

Marinko Došen

Katija Klepo

Društvo je upisano u sudskom registru Trgovačkog suda u Splitu pod MBS: 060007090 Osobni identifikacijski broj: 48351740621 IBAN: HR04 2340 0091 1101 5371 1, Privredna banka Zagreb d.d., Zagreb

Temeljni kapital u iznosu 419.958,400 kn u cijelosti uplaćen Izdano 4.199.584 redovnih dionica na ime, svaka nominalnog iznosa od 100 kn Predsjednik Uprave: Marinko Došen Članovi Uprave: Mladen Peroš, Ivica Tolić, Katija Klepo, Denis Fusek, Hrvoje Jurišić Predsjednik Nadzornog odbora: Josip Boban

Your needs. Our drive.

SOLIN, FEBRUARY 2016

WWW.ADPLASTIK.HR