AD Plastik d.d. — Interim / Quarterly Report 2012

Jul 25, 2012

Management Interim Report of the AD Plastik Group and Company AD Plastik Inc. Solin for the second quarter of 2012.

Solin, July 2012.

Content

	a)	Management Interim Report of the AD Plastik Group and company AD Plastik Inc. Solin for the period 01.01.-30.06.2012.	2
	b)	Financial reports of AD Plastik Group	4
1.		Balance sheet	6
2.		Profit and loss account	8
3.		Cash flow (indirect method)	10
4.		Statement of changes in equity	11
	c)	Financial reports of the company AD Plastik Inc.	12
5.		Balance sheet	14
6.		Profit and loss account	16
7.		Cash flow (indirect method)	17
8.		Statement of changes in equity	18
	d)	Statement of the person responsible for drafting the financial reports	19

a) Management Interim Report of the AD Plastik Group and company AD Plastik Inc. Solin for the period 01.01.-30.06.2012.

Indicator	01.01.- 30.06.2012.	01.01.- 30.06.2011.	Rate of change %
(AOP 112) Sales revenue (thousands of HRK)	380.499	363.872	4.6%
(AOP 152) Net profit (thousands of HRK)	36.254	38.140	-4.9%
Debt Ratio	0,4076	0,4144	-1.7%

Financial reports of the AD Plastik Group for the period 01.01. – 30.06.2012.

In the period January-June AD Plastik Group had 4.6% sales revenue growth compared with same period last year.

Net profit amounted 36.3 million HRK, while in the same period of last year amounted 38.1 million HRK. There are several reasons for the decrease in net profit margin, the most important are:

• Operating costs of new acquisitions have been present since the beginning of the year

• Weakening of the Russian ruble (RUB) in relation to the EUR in the second quarter for approx. 5.5%

In the first half of 2012 larger part of management activities was focused on new acquisitions in Mladenovac and Kaluga. We can abstract following events that affected or shall affect business:

• In the first half of the year our largest customers (Renault, Peugeot) decreased production compared to the initial plans. Unlike previous years, customers frequently change plans, where is very important fast adaptation of plans with all business expenses.
• AD Plastik d.d., does monthly control of plans, to which we align all costs and take into account realization of all project activities. The parent company has already started preparations for Edison Project (Renault – Daimler), and we are working on other projects for customers – Renault, PSA, Ford, VAZ ...
• In the first half of the year we bought equipment from M-Prointex in Mladenovac, Serbia, while purchase of property was realized in December 2011. We took over existing manufacturing of building isolation, area was adopted and equipment installed for the new Fiat car. Serial production and deliveries for Fiat program started at beginning of July.
• In Kaluga, Russia, we finished activities on area adaption. Equipment for the production of isolation was installed and tests were made. Currently the installation of equipment for production of carpets is in progress.The start of serial deliveries from this site will be in August. In February, the company made reregistration of ADP Luga to ADP Kaluga.
• Company ZAO PHR, Samara (ADP Togliatti, Russia) in the first half of the year, achieved better sales revenue than planned, and we expect that this trend will continue in future. In second quarter we won nomination for new Logan which will be produced in Avtoframos.The start of production is planned for mid-2013 and in full year of production we should double current sales revenue. At the beginning of July we got a loan from EBRD in RUB (equivalent 7 mil. EUR), which will significantly reduce the current foreign exchange risk.
• Production in the Romanian company is stable and we can say that Dacia brand is one of the few cars that had no negative fluctuations in the market for the first half of the year, which is shown by realization and

profit achievement above plan. Stable trend can be expected in the second half of the year. In the second quarter decision was made about dividend payment from Romanian company, which is included in income of parent company.

• FADP Luga, Russia in first half of the year, achieved full capacity utilization of the facility, and continues with activities aimed at optimizing costs. Activities have been initiated for replacement of existing loans through EBRD.
• Given the intense investment activity of the Group, part of activities are focused on getting the incentives and subsidies from the states in which we invest. In Serbia, regarding our investments and new employment we got the Decision on the possibility of using incentives, and incentives are expected in Croatia and Russia.
• In February, we made an advance payment of dividend to the amount of kn 2.47/share, and remaining part of dividend in amount of 5.53 kn per share will be paid until 18th of August.

On June 30th, 2012 the Group had 2545 employees, which of 824 were in the parent company AD Plastik Inc. Solin.

On June 30th , 2012 the share capital of the parent company AD Plastik Inc. amounted kuna 419.958.400, and it haven`t been changed

In Group`s balance sheet positions biggest gain was recorded in these positions:

• (AOP 010) Tangible assets (20.7 mil. HRK) for realization of investment in Mladenovac and Kaluga (real estate and equipment);
• • (AOP 035) Inventories (12.1 mil. HRK), primarily due to the large growth stocks of tools (preparation for new products);
• • (AOP 046) Receivables from participating businesses are greater because of claims voted for a dividend.
• • (AOP 049) Other receivables the most important item is advances paid to suppliers for tools and other capital investments.
• • (AOP 086 and AOP 096) Liabilities to banks increased by 35 mil.HRK which occurred due to financing of realization of the investment cycle.

Basic consolidated financial statements include: the quarterly data for AD Plastik Inc. Solin, ADP Kaluga, Russia, ZAO PHR Togliatti, Russia, AD Plastik Ltd., Slovenia, ADP Mladenovac, Serbia and SG Plastik Ltd., Solin, Croatia. Results of associated companies EAPS Romania and FADP Holding France are included in the Group under the equity method..

EXPECTATIONS AND STRATEGIC DIRECTIONS FOR 2012

Given the current unfavorable macroeconomic environment, goals for 2012 are as follows:

• Start of serial deliveries for new projects, and complete effective integration of new locations in Serbia and Russia in to business systems of AD Plastik Group on all levels
• Regular review of business plans of all group companies, and fast alignment of costs with revenue
• Start of capital investment in AD Plastik Inc. In property and equipment, necessary for successful implementation of project Edison (serial production is planned for early 2014)
• In September, start of interior and exterior parts deliveries for the production of new Dacia Logan 2 in Romanian Pitesti (EAPS)
• Achievement of Group`s net profit at least at the level of last year

b) Financial report of AD Plastik Group

Appendix 1
Reporting period:				01.01.2012.		till	30.06.2012.
						Quarterly Financial Report of the entrepreneur TFI-POD
	Register number (MB):		03440494
	Entity register number (MBS):		060007090
			48351740621
	Personal identification number (PIN):
	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	406	Solin
	name:
	County code and name:	17	Splitsko-dalmatinska				No. of employees:	2545
	Consolidated report:						(at the end of the trimester) NCA code:	2932
	Names of consolidation subjects (according to IMSF):				Seat:
							REG.NO.:
			AD PLASTIK d.d.			Solin, Hrvatska	03440494
			ZAO PHR			Samara, Ruska Federacija	1036300221935
			AD PLASTIK d.o.o.			Novo Mesto, Slovenija	1214985000
		ZAO AD PLASTIK KALUGA				Kaluga, Ruska Federacija	1074710000320
			SG PLASTIK d.o.o.			Solin, Hrvatska	02097974
			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.Interim report
							2. Financial statements (balance sheet, profit and loss statement, cash flow statement and statement of changes in equity )
	3.Statement of the person responsible for compiling financial statements.
				Place of the seal			(signature of the person authorised for representation)

1. Balance sheet Assets

BALANCE SHEET
as at 30.06.2012.
Taxpayer: GROUP AD PLASTIK
ITEM	AOP	Preceding year	Current year
	ind.
1	2	3	4
ASSETS
A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID	001
B) FIXED ASSETS (003+010+020+029+033)	002	742.819.707	749.479.990
I. INTANGIBLE ASSETS (004 up to 009)	003	41.387.283	38.043.168
1. Development costs	004	38.937.009	33.675.525
2. Concessions, patents, licenses, trademarks, softwares and other rights	005	515.674	557.836
3. Goodwill	006
4. Advances for purchase of intangible assets	007
5. Intangible assets in preparation	008		2.086.751
6. 6. Other intangible assets	009	1.934.600	1.723.056
II. TANGIBLE ASSETS (011 up to 019)	010	537.992.686	558.680.296
1. Land	011	135.379.260	135.379.260
2. Buildings	012	225.514.301	224.231.850
3. Plants and machinery	013	144.437.953	166.012.599
4. Tools, plant & office inventory, furniture & transport means	014	13.337.564	9.273.265
5. Biological assets	015
6. Payments on account for tangible assets	016	9.836.323
7. Tangible assets in preparation	017	6.765.557	23.783.322
8. Other tangible assets	018	2.721.728
9. Investment in real estate	019
III. FIXED FINANCIAL ASSETS (021 up to 028)	020	162.445.326	151.828.657
1. Shares in affiliated undertakings	021
2. Loans to affiliated undertakings	022
3. Participating interests (shares)	023	84.333.744	73.479.390
4. Given loans to companies in which exist participating interests	024	53.309.155	53.613.595
5. Investments in securities	025	63.855	63.855
6. Other loan, deposits etc	026	24.738.572	24.671.817
7. Other fixed financial assets	027
8. Investment stated in equity method	028
IV. RECEIVABLES (030 up to 032)	029	0	0
1. Receivables from associated undertakings	030
2. Receivables from sales on credit	031
3. Other receivables	032
V. DEFFERED TAX ASSETS	033
C) CURRENT ASSETS (035+043+050+058)	034	994.412	927.869
I. INVENTORY (036 up to 042)	035	342.563.374	397.363.177
		72.995.772	85.134.389
1. Materials and supplies	036	39.899.443	42.336.271
2. Work in progress	037	2.530.539	2.009.909
3. Finished goods	038	11.092.898	10.159.233
4. Commercial goods	039	19.472.892	29.928.827
5. Advances for inventories	040		700.149
6. Long term assets held for sale	041
7. Biological assets	042
II. RECEIVABLES (044 up to 049)	043	201.380.924	290.179.186
1. Receivables from associated undertakings	044
2. Trade receivables	045	144.486.335	183.718.008
3. Receivables from participating companies	046	11.459.976	43.783.070
4. Receivables from employees and members of the business	047	735.970	1.156.623
5. Receivables from government and other institutions	048	19.265.748	21.871.020
6. Other receivables	049	25.432.895	39.650.465
III. CURRENT FINANCIAL ASSETS (051 up to 057)	050	60.674.391	18.087.360
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	14.977.162	17.970.550
5. Investments in to securities	055
6. Other loan, deposits etc	056	45.697.229	116.810
7. Other financial assets	057
IV. CASH AT BANK AND IN HAND	058	7.512.287	3.962.242
D) PREPAYMENTA AND ACCRUED INCOME	059	116.165.088	117.266.900
E) TOTAL ASSETS (001+002+034+059)	060	1.201.548.169	1.264.110.067
F) OUT-OF-BALANCE ITEMS	061	4.592.542	4.592.542

Liabilities

LIABILITIES
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	703.571.542	748.888.269
I. SUBSCRIBED SHARE CAPITAL	063	419.958.400	419.958.400
II. CAPITAL RESERVES	064	183.120.693	183.120.949
III. RESERVES FROM GAIN (066+067-068+069+070)	065	6.853.275	6.853.198
1. Legal reserves	066	6.142.808	6.142.832
2. Reserves for own shares	067	378.455	425.729
3. Own stocks and shares (deductible item)	068	378.455	425.729
4. Statutory reserves	069	37.583	37.482
5. Other reserves	070	672.884	672.884
IV. REVALUATION RESERVES	071	10.185.353	10.185.353
V. RETAINED EARNINGS OR LOSS BROUGHT FORWARD (073-074)	072	18.778.919	92.504.367
1. Retained earnings	073	18.778.919	92.504.367
2. Loss brought forward	074
VI. CURRENT YEAR PROFIT OR LOSS (076-077)	075	64.663.081	36.250.378
1. Current year profit	076	64.663.081	36.250.378
2. Current year loss	077
VII. MINOR INTEREST	078	11.821	15.624
B) PROVISIONS (080 up to 082)	079	15.214.437	12.729.035
1. Provisions for pensions, severance pay and similar obligations	080	4.954.378	3.388.145
2. Provisions for tax liabilities	081
3. Other provisions	082	10.260.059	9.340.890
C) LONG TERM LIABILITIES (084 up to 092)	083	79.910.743	131.736.916
1. Liabilities to related parties	084
2. Commitments for loans, deposits, etc	085
3. Liabilities to banks and other financial institutions	086	79.841.681	131.638.927
4. Liabilities for advances	087
5. Trade payables	088
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	69.062	97.989
D) SHORT TERM LIABILITIES (094 do 105)	093	400.643.484	367.116.246
1. Liabilities to related parties	094
2. Commitments for loans, deposits, etc	095		838.021
3. Liabilities to banks and other financial institutions	096	130.575.421	113.996.499
4. Liabilities for advances	097	121.247.148	131.550.236
5. Trade payables	098	120.621.316	100.708.787
6. Commitments on securities	099
7. Liabilities to companies in which are participating interests	100	8.971	111.018
8. Liabilities towards employees	101	3.163.182	9.251.637
9. Liabilities for taxes, contributions and other benefits	102	24.365.906	9.111.347
10. Liabilities to share in the result	103	657.875	642.830
11. Amount based on fixed assets intended to sale	104
12. Other short-term liabilities	105	3.665	905.871
E) DEFERRED PAYMENT OF COSTS AND FUTURE INCOME	106	2.207.963	3.639.601
F) TOTAL LIABILITIES (062+079+083+093+106)	107	1.201.548.169	1.264.110.067
G) 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)
A) CAPITAL AND RESERVES
1. Ascribed to the holders of the parent company capital	109	703.559.721	748.872.645
2. Ascribed to minority interest	110	11.821	15.624

2. Profit and loss account

AOP ind. Cumulative Quarter Cumulative Quarter 2 3 4 5 6 111 368.013.380 175.990.303 390.957.438 185.677.714 112 363.871.950 174.962.979 380.498.838 176.507.905 113 4.141.430 1.027.324 10.458.600 9.169.809 114 333.688.741 161.086.986 363.118.555 167.880.809 115 525.948 -598.877 3.346.416 -594.698 116 220.782.857 109.718.757 233.915.251 105.084.662 117 184.045.227 87.099.847 208.318.423 93.030.830 118 1.260.233 1.219.873 352.812 20.711 119 35.477.397 21.399.037 25.244.016 12.033.121 120 61.534.962 30.681.448 67.116.319 32.899.868 121 37.566.686 18.818.654 41.792.965 20.746.264 122 13.212.824 6.295.373 14.059.742 6.871.894 123 10.755.452 5.567.421 11.263.612 5.281.710 124 25.453.180 11.859.707 27.429.471 13.578.796 125 21.853.530 8.317.240 20.654.947 8.951.490 126 0 0 0 0 127 128 129 130 3.538.264 1.108.711 10.656.151 7.960.691 131 10.395.936 5.162.972 18.299.812 3.253.170 132 2.882.887 264.103 6.215.377 787.248 133 7.334.282 4.720.102 7.279.181 -2.318.266 134 4.783.988 4.783.988 135 0 0 136 178.767 178.767 21.266 200 137 13.905.999 7.662.038 23.086.040 12.197.982 138 3.284.723 1.205.421 5.653.357 2.288.618 139 10.389.312 6.224.653 17.432.683 9.909.364 140 141 231.964 231.964 142 12.226.337 6.158.336 17.640.435 8.215.599 143 797.251 -2.702.747 603.061 -2.068.145 144 145 146 390.635.653 187.311.611 426.897.685 197.146.483 147 348.391.991 166.046.277 386.807.656 178.010.646 148 42.243.662 21.265.334 40.090.029 19.135.837 149 42.243.662 21.265.334 40.090.029 19.135.837 150 0 0 0 0 151 4.103.591 320.531 3.835.883 1.004.138 152 38.140.071 20.944.803 36.254.146 18.131.699 153 38.140.071 20.944.803 36.254.146 18.131.699 154 0 0 0 0 in period from 01.01.2012. till 30.06.2012. PROFIT AND LOSS ACCOUNT 2. LOSS FOR THE PERIOD (151-148) 2. Loss before taxation (147-146) XII. PROFIT TAX XIII. PROFIT OR LOSS FOR THE PERIOD (148-151) 1. PROFIT FOR THE PERIOD (149-151) IX. TOTAL INCOME (111+131+142 + 144) X. TOTAL CHARGES (114+137+143 + 145) XI. PROFIT OR LOSS BEFORE TAXATION (146-147) 1. Profit before taxation (146-147) V. SHARE OF PROFIT FROM ASSOCIATED COMPANIES VI. SHARE OF LOSS FROM ASSOCIATED COMPANIES VII. EXTRAORDINARY – OTHER INCOME VIII. EXTRAORDINARY – OTHER CHARGES 1. Interests, exchange rate differenc, dividends with affiliates 2. Interests, exch. rate differenc., dividends with non-affiliates 3. Non-realized financial charges 4. Other financial charges 3. Part of income from affiliates and participated interests 4. Non-realized financial income 5. Other financial income IV. FINANCIAL CHARGES (138 up to 141) 8. Other operating expenses III. FINANCIAL INCOME (132 up to 136) 1. Interests, exchange rate differenc, dividends with affiliates 2. Interests, exch. rate differenc., dividends with non-affiliates 6. Impairment (127+128) a) fixed assets (excluding financial assets) b) current assets (excluding financial assets) 7. Provisions b) Costs of taxes and social security c) Duties on wages 4. Depreciation 5. Other costs b) Costs of sales c) Other external charges 3. Staff costs (121 up to 123) a) Salaries and wages II. OPERATING CHARGES (115+116+120+124+125+126+129+130) 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 2. Other operating income Preceding year Current year Taxpayer: GROUP AD PLASTIK ITEM 1 I. OPERATING TURNOVER (112+113) 1. Income from sales

2. Profit and loss account

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	38.137.554	20.943.466	36.250.378	18.128.972
2. Attributable to minority interests	156	2.517	1.337	3.768	2.727
Report for other comprehensive income (only for the taxpayer applying IFRS)
I. PROFIT OR LOSS FOR THE CURRENT PERIOD (= 152)	157	38.140.071	20.944.803	36.254.146	18.131.699
II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAXATION (159 up to 165)	158	0	0	0	0
1. Exchange differences on translation of foreign operations	159
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
IV. OTHER COMPREHENSIVE NET PROFIT OR LOSS	167	0	0	0	0
V. OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD (157+167)	168	38.140.071	20.944.803	36.254.146	18.131.699
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	38.137.554	20.943.466	36.250.378	18.128.972
2. Attributable to minority interests	170	2.517	1.337	3.768	2.727

3. Cash flow report – Indirect method

CASH FLOW REPORT – Indirect method
in period from 01.01.2012. till 30.06.2012. Taxpayer: GROUP AD PLASTIK
	AOP
ITEM	ind.	Preceding year	Current year
1	2	3	4
CASH FLOW FROM OPERATING ACTIVITIES
1. Profit before taxation	001	42.243.662	40.090.029
2. Depreciation	002	25.453.180	27.429.471
3. Increase of current liabilities	003	12.249.505
4. Decrease of current receivables	004
5. Decrease in stocks	005
6. Other increase of cash flow	006	1.578	66.543
I. Total increase of cash flow from operating activities (001 - 006)	007	79.947.925	67.586.043
1. Decrease of current liabilities	008		34.581.002
2. Increase of current receivables	009	11.031.140	78.919.916
3. Increase in stocks	010	6.386.642	12.138.617
4. Other decrease of cash flow	011
II. Total decrease of cash flow from operating activities (008 – 011)	012	17.417.782	125.639.535
A1) NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	013	62.530.143	0
A2) NET DECREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	014	0	58.053.492
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
4. Cash inflows from dividends	018
5. Other cash inflows from investment activities	019
III. Total cash inflows from investment activities (015-019)	020	0	0
1. Cash expenditures for purchase of fixed tangible and intangible assets	021	27.143.117	44.772.966
2. Cash expenditures for acquisition of ownership and debt instruments	022
3. Other cash expenditures from investment activities	023	2.271.747
IV. Total cash expenditures from investment activities (021-023)	024	29.414.864	44.772.966
B1) NET INCREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (020-024)	025	0	0
B2) NET DECREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (024-020)	026	29.414.864	44.772.966
CASH FLOW FROM FINANCIAL ACTIVITIES
1. Cash inflows from issuing ownership and debt financial instruments	027
2. Cash inflows from credit principal, debentures, loans and other borrowings	028		108.327.701
3. Other inflows from financial activities	029	4.519.208	5.226.698
V. Total cash inflows from financial activities (027-029)	030	4.519.208	113.554.399
1. Cash expenditures for the payment of credit principal and debentures	031	13.926.286
2. Cash expenditures for the payment of dividends	032		10.980.158
3. Cash expenditures for financial lease	033	17.446.284	3.297.828
4. Cash expenditures for repurchase of own shares	034
5. Other cash expenditures from financial activities	035	2.986.660
VI. Total cash expenditures from financial activities (031-035)	036	34.359.230	14.277.986
C1) NET INCREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (030-036)	037	0	99.276.413
C2) NET DECREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (036-030)	038	29.840.022	0
Total cash flow increase (013-014+025-026+037-038)	039	3.275.257
Total cash flow decrease (014-013+026-025+038-037)	040		3.550.045
Cash and cash equivalents at the beginning of the period	041	9.561.724	7.512.287
Cash and cash equivalents increase	042	3.275.257
Cash and cash equivalents decrease	043		3.550.045
Cash and cash equivalents at the end of the period	044	12.836.981	3.962.242

STATEMENT OF CHANGES IN EQUITY
	for period	1.1.2012	till	30.6.2012
Taxpayer: GROUP AD PLASTIK
					AOP	Preceding
	ITEM				ind.	year	Current year
	1				2	3	4
1. Subscribed capital					001	419.958.400	419.958.400
2. Capital reserves					002	183.120.693	183.120.949
3. Reserves from profit					003	6.865.096	6.868.822
4. Retained profit or loss carried over					004	18.778.919	92.504.367
5. Current year profit or loss					005	64.663.081	36.250.378
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	10.185.353	10.185.353
10. Total capital and reserves (AOP 001-009)					010	703.571.542	748.888.269
11.Exchange rate variations from net investments into foreign business operations					011
12.Current and deferred taxes (part)					012
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 capital increase or decrease (AOP 011 - 016)					017	0	0
17a. Ascribed to holders of the holders company capital					018	703.559.721	748.872.645
17b. Ascribed to minority interest					019	11.821	15.624

c) Financial report of the company AD Plastik Inc. Solin

Appendix 1
Reporting period:				01.01.2012.		till	30.06.2012.
						Quarterly Financial Report of the entrepreneur TFI-POD
	Register number (MB):		03440494
	Entity register number (MBS):		060007090
	Personal identification		48351740621
	number (PIN):
	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	406	SOLIN
	name:
	County code and name:	17		SPLITSKO-DALMATINSKA			No. of employees:	824
							(at the end of the trimester)
	Consolidated report:	NO					NCA code:	2932
	Names of consolidation subjects (according to IMSF):				Seat:		REG.NO.:
	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. Interim report
							2. Financial statements (balance sheet, profit and loss statement, cash flow statement and statement of changes in equity )
	3.Statement of the person responsible for compiling financial statements.
				Place of the seal			(signature of the person authorised for representation)

BALANCE SHEET
as at 30.06.2012.
Taxpayer: AD Plastik d.d. ITEM	AOP	Preceding year	Current year
1	ind. 2	3	4
ASSETS
A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID	001
B) FIXED ASSETS (003+010+020+029+033)	002	721.399.889	719.533.896
I. INTANGIBLE ASSETS (004 up to 009)	003	36.409.304	33.985.610
1. Development costs	004	35.938.378	33.633.720
2. Concessions, patents, licenses, trademarks, softwares and other rights	005	470.926	351.890
3. Goodwill	006
4. Advances for purchase of intangible assets 5. Intangible assets in preparation	007 008
6. 6. Other intangible assets	009
II. TANGIBLE ASSETS (011 up to 019)	010	425.253.547	416.861.800
1. Land	011	135.379.260	135.379.260
2. Buildings	012	168.735.416	167.396.024
3. Plants and machinery	013	111.303.453	105.340.357
4. Tools, plant & office inventory, furniture & transport means	014	6.158.495	6.479.046
5. Biological assets	015
6. Payments on account for tangible assets	016
7. Tangible assets in preparation	017	3.676.923	2.267.113
8. Other tangible assets 9. Investment in real estate	018 019
III. FIXED FINANCIAL ASSETS (021 up to 028)	020	258.849.409	267.798.857
1. Shares in affiliated undertakings	021	74.947.666	87.041.273
2. Loans to affiliated undertakings	022	53.478.776	50.096.932
3. Participating interests (shares)	023	52.311.385	52.311.385
4. Given loans to companies in which exist participating interests	024	53.309.155	53.613.595
5. Investments in securities	025	63.855	63.855
6. Other loan, deposits etc	026	24.738.572	24.671.817
7. Other fixed financial assets	027
8. Investment stated in equity method	028
IV. RECEIVABLES (030 up to 032)	029	0	0
1. Receivables from associated undertakings	030 031
2. Receivables from sales on credit 3. Other receivables	032
V. DEFFERED TAX ASSETS	033	887.629	887.629
C) CURRENT ASSETS (035+043+050+058)	034	271.636.937	312.392.854
I. INVENTORY (036 up to 042)	035	34.962.353	25.344.571
1. Materials and supplies	036	23.698.027	17.073.596
2. Work in progress	037	2.333.615	1.835.236
3. Finished goods	038	8.849.908	6.359.389
4. Commercial goods	039	80.803	76.350
5. Advances for inventories	040
6. Long term assets held for sale	041 042
7. Biological assets II. RECEIVABLES (044 up to 049)	043	172.651.281	258.747.034
1. Receivables from associated undertakings	044	61.634.309	99.280.173
2. Trade receivables	045	59.361.736	68.791.891
3. Receivables from participating companies	046	11.459.976	43.783.070
4. Receivables from employees and members of the business	047	410.133	941.028
5. Receivables from government and other institutions	048	16.925.769	13.325.717
6. Other receivables	049	22.859.358	32.625.155
III. CURRENT FINANCIAL ASSETS (051 up to 057)	050	62.835.622	27.850.490
1. Shares in affiliated undertakings	051
2. Loans to affiliates	052 053	2.161.231	9.763.130
3. Participating interests (shares) 4. Given loans to companies in which exist participating interests	054	14.977.162	17.970.550
5. Investments in to securities	055
6. Other loan, deposits etc	056	45.697.229	116.810
7. Other financial assets	057
IV. CASH AT BANK AND IN HAND	058	1.187.681	450.759
D) PREPAYMENTA AND ACCRUED INCOME	059	116.103.331	115.128.804
E) TOTAL ASSETS (001+002+034+059)	060	1.109.140.157	1.147.055.554
F) OUT-OF-BALANCE ITEMS	061	4.592.542	4.592.542

LIABILITIES
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	671.856.988	714.240.271
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	6.801.736	6.801.736
1. Legal reserves	066	6.128.852	6.128.852
2. Reserves for own shares	067	378.455	425.729
3. Own stocks and shares (deductible item)	068	378.455	425.729
4. Statutory reserves	069
5. Other reserves	070	672.884	672.884
IV. REVALUATION RESERVES	071	10.185.353	10.185.353
V. RETAINED EARNINGS OR LOSS BROUGHT FORWARD (073-074)	072	0	51.835.702
1. Retained earnings	073		51.835.702
2. Loss brought forward	074
VI. CURRENT YEAR PROFIT OR LOSS (076-077)	075	51.835.702	42.383.283
1. Current year profit	076	51.835.702	42.383.283
2. Current year loss	077
VII. MINOR INTEREST	078
B) PROVISIONS (080 up to 082)	079	12.744.194	11.694.194
1. Provisions for pensions, severance pay and similar obligations	080	4.438.145	3.388.145
2. Provisions for tax liabilities	081
3. Other provisions	082	8.306.049	8.306.049
C) LONG TERM LIABILITIES (084 up to 092)	083	79.841.681	79.677.253
1. Liabilities to related parties	084
2. Commitments for loans, deposits, etc	085
3. Liabilities to banks and other financial institutions	086	79.841.681	79.677.253
4. Liabilities for advances	087
5. Trade payables	088
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
D) KRATKOROČNE OBVEZE (094 do 105)	093	342.489.331	337.804.236
1. Liabilities to related parties	094	35.941.327	66.284.404
2. Commitments for loans, deposits, etc	095
3. Liabilities to banks and other financial institutions	096	92.921.145	76.445.999
4. Liabilities for advances	097	106.411.912	116.953.972
5. Trade payables	098	84.490.786	68.348.123
6. Commitments on securities	099
7. Liabilities to companies in which are participating interests	100	8.971	111.018
8. Liabilities towards employees	101	1.556.189	5.796.566
9. Liabilities for taxes, contributions and other benefits	102	20.501.126	3.221.323
10. Liabilities to share in the result	103	657.875	642.830
11. Amount based on fixed assets intended to sale	104
12. Other short-term liabilities	105		0
E) DEFERRED PAYMENT OF COSTS AND FUTURE INCOME	106	2.207.963	3.639.600
F) TOTAL LIABILITIES (062+079+083+093+106)	107	1.109.140.157	1.147.055.554
G) 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)
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
in period from 01.01.2012. till 30.06.2012.
Taxpayer: AD Plastik d.d.
ITEM	AOP ind.	Preceding year		Current year
		Cumulative	Quarter	Cumulative	Quarter
1	2	3	4	5	6
I. OPERATING TURNOVER (112+113)	111	294.865.120	142.012.684	275.856.701	124.810.560
1. Income from sales	112	292.908.231	141.557.803	275.108.539	124.307.702
2. Other operating income	113	1.956.889	454.881	748.162	502.858
II. OPERATING CHARGES (115+116+120+124+125+126+129+130)	114	270.738.545	132.760.831	259.132.980	118.779.271
1. Changes in the value of inventories of work in progress and finished goods	115	473.779	-1.319.949	2.988.898	194.732
2. Material charges (117 up to 119)	116	178.292.449	87.756.746	174.037.113	78.969.251
a) Costs of raw materials and consumables	117	137.822.964	66.579.396	121.277.839	53.815.796
b) Costs of sales	118	16.331.749	8.155.650	34.275.159	15.829.223
c) Other external charges	119	24.137.736	13.021.700	18.484.115	9.324.232
3. Staff costs (121 up to 123)	120	44.498.028	22.529.489	46.118.448	22.635.617
a) Salaries and wages	121	26.698.817	13.517.694	27.671.069	13.581.371
b) Costs of taxes and social security	122	11.124.507	5.632.372	11.529.612	5.658.904
c) Duties on wages	123	6.674.704	3.379.423	6.917.767	3.395.342
4. Depreciation	124	19.706.127	9.852.747	19.614.289	9.739.847
5. Other costs	125	26.212.093	13.214.446	15.978.003	7.220.369
6. Impairment (127+128)	126	0	0	0	0
a) fixed assets (excluding financial assets)	127
b) current assets (excluding financial assets)	128
7. Provisions	129
8. Other operating expenses	130	1.556.069	727.352	396.228	19.454
III. FINANCIAL INCOME (132 up to 136)	131	40.327.123	8.247.057	41.317.633	30.449.942
1. Interests, exchange rate differenc, dividends with affiliates	132	17.490.271	3.968.082	2.137.480	114.316
2. Interests, exch. rate differenc., dividends with non-affiliates	133	6.888.550	4.278.975	6.504.437	-2.340.090
3. Part of income from affiliates and participated interests	134	15.948.302		32.675.716	32.675.716
4. Non-realized financial income	135
5. Other financial income	136
IV. FINANCIAL CHARGES (138 up to 141)	137	13.497.962	8.296.692	13.979.837	5.186.154
1. Interests, exchange rate differenc, dividends with affiliates	138	4.114.725	3.013.512	1.557.363	-873.212
2. Interests, exch. rate differenc., dividends with non-affiliates	139	9.383.237	5.283.180	12.422.474	6.059.366
3. Non-realized financial charges	140
4. Other financial charges	141
V. SHARE OF PROFIT FROM ASSOCIATED COMPANIES	142
VI. SHARE OF LOSS FROM ASSOCIATED COMPANIES	143
VII. EXTRAORDINARY – OTHER INCOME	144
VIII. EXTRAORDINARY – OTHER CHARGES	145
IX. TOTAL INCOME (111+131+142 + 144)	146	335.192.243	150.259.741	317.174.333	155.260.501
X. TOTAL CHARGES (114+137+143 + 145)	147	284.236.507	141.057.523	273.112.817	123.965.425
XI. PROFIT OR LOSS BEFORE TAXATION (146-147)	148	50.955.736	9.202.218	44.061.516	31.295.076
1. Profit before taxation (146-147)	149	50.955.736	9.202.218	44.061.516	31.295.076
2. Loss before taxation (147-146)	150	0	0	0	0
XII. PROFIT TAX	151	3.161.186	175.174	1.678.233	-584.595
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151)	152	47.794.550	9.027.044	42.383.283	31.879.671
1. PROFIT FOR THE PERIOD (149-151)	153	47.794.550	9.027.044	42.383.283	31.879.671
2. LOSS FOR THE PERIOD (151-148)	154	0	0	0	0

CASH FLOW REPORT – Indirect method
in period from 01.01.2012. till 30.06.2012.
Taxpayer: AD Plastik d.d.
ITEM	AOP ind.	Preceding year	Current year
1	2	3	4
CASH FLOW FROM OPERATING ACTIVITIES
1. Profit before taxation	001	50.955.736	44.061.516
2. Depreciation	002	19.706.127	19.614.289
3. Increase of current liabilities	003
4. Decrease of current receivables	004	4.177.458
5. Decrease in stocks	005	4.977.162	9.617.782
6. Other increase of cash flow	006
I. Total increase of cash flow from operating activities (001 - 006)	007	79.816.483	73.293.587
1. Decrease of current liabilities	008	34.047.771	4.303.458
2. Increase of current receivables	009		74.141.067
3. Increase in stocks	010
4. Other decrease of cash flow	011
II. Total decrease of cash flow from operating activities (008 – 011)	012	34.047.771	78.444.525
A1) NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	013	45.768.712	0
A2) NET DECREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	014	0	5.150.938
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
4. Cash inflows from dividends	018
5. Other cash inflows from investment activities	019	5.475.379
III. Total cash inflows from investment activities (015-019)	020	5.475.379	0
1. Cash expenditures for purchase of fixed tangible and intangible assets	021	6.629.763	8.798.848
2. Cash expenditures for acquisition of ownership and debt instruments	022		12.093.607
3. Other cash expenditures from investment activities	023
IV. Total cash expenditures from investment activities (021-023)	024	6.629.763	20.892.455
B1) NET INCREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (020-024)	025	0	0
B2) NET DECREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (024-020)	026	1.154.384	20.892.455
CASH FLOW FROM FINANCIAL ACTIVITIES
1. Cash inflows from issuing ownership and debt financial instruments	027
2. Cash inflows from credit principal, debentures, loans and other borrowings	028		3.381.844
3. Other inflows from financial activities	029		45.178.306
V. Total cash inflows from financial activities (027-029)	030	0	48.560.150
1. Cash expenditures for the payment of credit principal and debentures	031	13.923.560
2. Cash expenditures for the payment of dividends	032		10.980.158
3. Cash expenditures for financial lease	033	28.629.952	10.595.288
4. Cash expenditures for repurchase of own shares	034
5. Other cash expenditures from financial activities	035	1.214.167	1.678.233
VI. Total cash expenditures from financial activities (031-035)	036	43.767.679	23.253.679
C1) NET INCREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (030-036)	037	0	25.306.471
C2) NET DECREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (036-030)	038	43.767.679	0
Total cash flow increase (013-014+025-026+037-038)	039	846.649	0
Total cash flow decrease (014-013+026-025+038-037)	040	0	736.922
Cash and cash equivalents at the beginning of the period	041	3.228.873	1.187.681
Cash and cash equivalents increase	042	846.649
Cash and cash equivalents decrease	043		736.922
Cash and cash equivalents at the end of the period	044	4.075.522	450.759

STATEMENT OF CHANGES IN EQUITY
	for period	1.1.2012	till	30.6.2012
Taxpayer: AD Plastik d.d.
	ITEM				AOP	Preceding
					ind.	year	Current year
	1				2	3	4
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	6.801.736	6.801.736
4. Retained profit or loss carried over					004	0	51.835.702
5. Current year profit or loss					005	51.835.702	42.383.283
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	10.185.353	10.185.353
10. Total capital and reserves (AOP 001-009)					010	671.856.988	714.240.271
11.Exchange rate variations from net investments into foreign business					011
12.Current and deferred taxes (part)					012
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 capital increase or decrease (AOP 011 - 016)					017	0	0
17a. Ascribed to holders of the holders company capital					018
17b. Ascribed to minority interest					019

d) Statement of the person responsible for the financial report

According to my best knowledge:

• 1. Unaudited financial reports for the period from 01.01.till 30.06.2012. were implemented with corresponding reporting standards, giving complete and truthful overview of the asset, liabilities, profit and loss, financial status and operations of the issuer and the companies who are included in the consolidation
• 1. Report contains truthful overview of the development and business result and issuer status and companies who were included in the consloidation, with a description of significant risks and uncertainties to which the issuer and the companies are exposed as whole.

Director of Finance and Accounting Management Board member responsible for accounting, finance and controlling

19