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

Oct 29, 2012

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

Solin, October 2012.

Content

	a)	Management Interim Report of the AD Plastik Group and company AD Plastik Inc. Solin for the period 01.01.-30.09.2012.	2
	b)	Financial reports of AD Plastik Group	4
1.		Balance sheet	6
2.		Profit and loss account	8
3.		Cash flow (indirect method)	9
4.		Report on changes to capital	10
	c)	Financial reports of the company AD Plastik Inc.	11
5.		Balance sheet	13
6.		Profit and loss account	15
7.		Cash flow (indirect method)	16
8.		Report on changes to capital	17
	d)	Statement of the person responsible for drafting the financial reports	18

a) Management Interim Report of the AD Plastik Group and company AD Plastik Inc. Solin for the period 01.01.-30.09.2012.

Indicator	01.01.- 30.09.2012.	01.01.- 30.09.2011.	Rate of change %
Sales revenue (thousands of HRK)	539.366	531.581	1,5%
Net profit (thousands of HRK)	37.184	39.318	-5,4%
Debt Ratio	0,423	0,414	1,7%

Financial reports of the AD Plastik Group for the period 01.01. – 30.09.2012.

In the reporting period AD Plastik Group had 1,5 % sales revenue growth compared with same period last year. Net profit amounted 37,2 million HRK, while in the same period of the last year amounted 39,3 million HRK. Main reasons for the decrease in net profit margin are:

• Operating costs of new acquisitions have been present since the beginning of the year, while they started generating revenue in the third quarter and with slightly less volume than planned;
• Decrease in revenue in the parent company, as a result of decrease in car sales in the European Union.

On our main terminal markets, in the European Union sales of new cars was lower from the beginning of the year, while in Russia for the same period new car sales increased. In this macroeconomic environment AD Plastik Group managed to achieve sales growth of 1,5% in the reporting period.

We can abstract following events that affected business in the nine months of this year:

• o Our largest customers (Renault, Peugeot & Citroen-PSA) decreased their production compared to the initial plans. Customers frequently change plans, where is very important fast adjustment of all business expenses with plans.
• o AD Plastik Inc., does monthly control of plans, to which we align all costs and take into account the realization of all project activities. The parent company has started preparations for Edison Project (Renault – Daimler), and we are working on other projects for customers – Renault, PSA, Ford, VAZ, etc ... In Croatia, in late September, a new law was voted, Law on the promotion of investments and improvement of investment environment, which will help us in the realization of new investment cycle.
• o We bought equipment from M-Prointex in Mladenovac, Serbia. We took over existing manufacturing of building isolation, the area was adjusted and the equipment was installed for production of parts for new Fiat car. Serial production and deliveries for Fiat program started at beginning of July. We introduced a new product outside automotive business which has R sign, and it is a geotextile that is made from recycled polyester.

Given investment and new employment we signed the Contract on the allocation of funds for direct investments with the Ministry of Economy and Regional Development of the Republic of Serbia, with which we obtained conditions for realization of incentives

• o In Kaluga, Russia, in the third quarter we started with serial production and products sales. Through third quarter we won nominations for injected parts of exterior and bumper components for Dacia Duster and Nissan versions of the same vehicle, injected exterior positions for Mitsubishi Outlander and part of injected positions for PSA.
• o Company ZAO PHR, Samara (ADP Togliatti, Russia) in nine months 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 second half of the 2013 and in full year of production we should double current sales revenue. At the beginning of July we refinanced loan from EBRD in RUB (equivalent 7 mil. EUR), which significantly reduced foreign exchange risk.

• o Production in the Romanian company (EAPS) is stable and we can say that Dacia brand is one of the few cars that had no negative fluctuations in the market for this part of the 2012. In September production of new model Dacia Logan 2 started. The correspondent dividend payment for AD Plastik Inc. was voted in amount of 27,9 mil. kn.
• o FADP Luga, Russia in nine months of the year 2012, achieved full capacity utilization of the facility, and continues with activities aimed at optimizing costs.
• o In February, parent company AD Plastik Inc., Solin paid advanced dividend in the amount of kn 2,47 per share, and remaining part of dividend in amount of 5,53 kn per share was paid in August.

On September 30th, 2012 the Group had 2.599 employees, which of 820 were in the parent company AD Plastik Inc. Solin.

In the Group`s balance sheet positions relative to December 31st, 2011 the greatest changes were recorded in these positions:

• o (AOP 010) Tangible assets (increase of 43,3 mil. HRK) because of realization of the investment in Mladenovac and Kaluga (real estate and equipment);
• o (AOP 026) Loans, deposits and other, long-term (decrease of 6,7 mil. HRK)- due to repayments of loans from ADP-ESOP Ltd.;
• o (AOP 035) Inventories (increase of 12,4 mil. HRK) due to increased production in ZAO PHR and preparation for production at new locations in Mladenovac and Kaluga;
• o (AOP 045) Receivables (decrease of 10 mil. HRK) due to changes in the structure of customers and increase in share of customers from Russia, at Group level, which have shorter payment terms
• o (AOP 046) Receivables from participating parties (increase of 21.2 mil. HRK)- due to receivables for declared dividends;
• o (AOP 056) Given loans, deposits and other (decrease of 45.7 mil. HRK)- because of own funds use in the realization of the investment cycle;
• o (AOP 083 and 096) Long-term liabilities to banks, short-term (increase of 121.3 mil. HRK) due to external financing for the realization of the investment cycle. Current liabilities to banks (a reduction of 54.5 mil. HRK) due to replacement of short-term loans with favorable long-term loans. The net effect is an increase in credit debt of 66.8 mil.HRK;
• o (AOP 098) Accounts payable (decrease of 38.7 mil. HRK) because of payment of part of payables at the beginning of 2012, and a decrease in accounts payable due to parent company lower realization;

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:

• Initiating investment of AD Plastik Inc. in property and equipment (beginning from the last quarter of 2012), necessary for the successful implementation of the project Edison (serial production is planned in early 2014)
• Initiating investment in subsidiaries in Russia, for preparation of the production for Dacia Logan 2 (series production is planned for the second half of 2013.)
• Complete integration of new sites in the business system of AD Plastik Group at all levels.
• Continuous control of business plans of companies in the Group, and fast alignment of costs with revenues.
• Achievement of Group's net profit at the level of net profit from the last year

b) Financial report of AD Plastik Group

Appendix 1
Reporting period:				01.01.2012.		till	30.09.2012.
						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:	2599
							(at the end of the trimester)
	Consolidated report:	YES					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
				Kaluga, Ruska Federacija			1074710000320
			ZAO AD PLASTIK KALUGA
			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. Financial statements (balance sheet, profit and loss statement, cash flow statement, changes in equity and notes to financial
	statements)
	2. Interim report,
	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 30.09.2012.
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	776.299.587
I. INTANGIBLE ASSETS (004 up to 009)	003 004	41.387.283	41.430.788
1. Development costs 2. Concessions, patents, licenses, trademarks, softwares and other rights	005	38.937.009 515.674	36.308.266 546.592
3. Goodwill	006
4. Advances for purchase of intangible assets	007		104.409
5. Intangible assets in preparation	008		2.808.750
6. 6. Other intangible assets	009	1.934.600	1.662.771
II. TANGIBLE ASSETS (011 up to 019)	010	537.992.686	581.286.994
1. Land	011	135.379.260	136.386.014
2. Buildings	012	225.514.301	223.935.861
3. Plants and machinery	013	144.437.953	159.354.832
4. Tools, plant & office inventory, furniture & transport means	014	13.337.564	8.713.557
5. Biological assets	015
6. Payments on account for tangible assets	016	9.836.323	17.098.400
7. Tangible assets in preparation	017	6.765.557	26.495.001
8. Other tangible assets	018	2.721.728	9.303.329
9. Investment in real estate	019
III. FIXED FINANCIAL ASSETS (021 up to 028)	020	162.445.326	152.651.231
1. Shares in affiliated undertakings	021
2. Loans to affiliated undertakings	022
3. Participating interests (shares)	023	84.333.744	79.527.908
4. Given loans to companies in which exist participating interests	024	53.309.155	54.971.185
5. Investments in securities	025	63.855	63.855
6. Other loan, deposits etc	026	24.738.572	18.088.283
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 C) CURRENT ASSETS (035+043+050+058)	033 034	994.412 342.563.374	930.574 336.525.253
I. INVENTORY (036 up to 042)	035	72.995.772	85.404.925
1. Materials and supplies	036	39.899.443	53.078.820
2. Work in progress	037	2.530.539	1.954.095
3. Finished goods	038	11.092.898	9.090.379
4. Commercial goods	039	19.472.892	20.696.370
5. Advances for inventories	040		585.261
6. Long term assets held for sale	041
7. Biological assets	042
II. RECEIVABLES (044 up to 049)	043	201.380.924	221.560.168
1. Receivables from associated undertakings	044
2. Trade receivables	045	144.486.335	134.454.143
3. Receivables from participating companies	046	11.459.976	32.758.144
4. Receivables from employees and members of the business	047	735.970	1.194.963
5. Receivables from government and other institutions	048	19.265.748	21.222.076
6. Other receivables	049	25.432.895	31.930.842
III. CURRENT FINANCIAL ASSETS (051 up to 057)	050	60.674.391	18.470.964
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	18.425.596
5. Investments in to securities	055
6. Other loan, deposits etc	056	45.697.229	45.368
7. Other financial assets	057
IV. CASH AT BANK AND IN HAND	058	7.512.287	11.089.196
D) PREPAYMENTA AND ACCRUED INCOME E) TOTAL ASSETS (001+002+034+059)	059 060	116.165.088 1.201.548.169	115.935.585 1.228.760.425
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	703.571.542	709.075.344
I. SUBSCRIBED SHARE CAPITAL	063	419.958.400	419.958.400
II. CAPITAL RESERVES	064	183.120.693	183.513.558
III. RESERVES FROM GAIN (066+067-068+069+070)	065	6.853.275	21.620.545
1. Legal reserves	066	6.142.808	6.142.966
2. Reserves for own shares	067	378.455	3.586.667
3. Own stocks and shares (deductible item)	068	378.455	3.586.667
4. Statutory reserves	069	37.583	37.181
5. Other reserves	070	672.884	15.440.398
IV. REVALUATION RESERVES	071	10.185.353	10.185.353
V. RETAINED EARNINGS OR LOSS BROUGHT FORWARD (073-074)	072	18.778.919	36.601.695
1. Retained earnings	073	18.778.919	36.601.695
2. Loss brought forward	074
VI. CURRENT YEAR PROFIT OR LOSS (076-077)	075	64.663.081	37.178.882
1. Current year profit	076	64.663.081	37.178.882
2. Current year loss	077
VII. MINOR INTEREST	078	11.821	16.911
B) PROVISIONS (080 up to 082)	079	15.214.437	12.231.698
1. Provisions for pensions, severance pay and similar obligations	080	4.954.378	3.388.145
2. Provisions for tax liabilities	081		0
3. Other provisions	082	10.260.059	8.843.553
C) LONG TERM LIABILITIES (084 up to 092)	083	79.910.743	201.207.993
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	201.136.996
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	70.997
D) SHORT TERM LIABILITIES (094 do 105)	093	400.643.484	303.956.758
1. Liabilities to related parties	094
2. Commitments for loans, deposits, etc	095
3. Liabilities to banks and other financial institutions	096	130.575.421	76.080.321
4. Liabilities for advances	097	121.247.148	127.822.391
5. Trade payables	098	120.621.316	81.945.139
6. Commitments on securities	099
7. Liabilities to companies in which are participating interests	100	8.971	16.947
8. Liabilities towards employees	101	3.163.182	7.295.293
9. Liabilities for taxes, contributions and other benefits	102	24.365.906	10.386.754
10. Liabilities to share in the result	103	657.875	374.754
11. Amount based on fixed assets intended to sale	104
12. Other short-term liabilities	105	3.665	35.159
E) DEFERRED PAYMENT OF COSTS AND FUTURE INCOME	106	2.207.963	2.288.632
F) TOTAL LIABILITIES (062+079+083+093+106)	107	1.201.548.169	1.228.760.425
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	709.058.433
2. Ascribed to minority interest	110	11.821	16.911

2. Profit and loss account

AOP ind. Cumulative Quarter Cumulative Quarter 2 3 4 5 6 111 531.581.072 163.567.692 539.366.005 148.408.567 112 518.070.521 154.198.571 524.570.829 144.071.991 113 13.510.551 9.369.121 14.795.176 4.336.576 114 493.843.954 160.155.213 513.078.012 149.959.457 115 1.088.569 562.621 4.061.256 714.840 116 304.140.415 83.357.558 321.444.378 87.529.127 117 267.375.480 83.330.253 281.890.112 73.571.689 118 1.451.069 190.836 351.521 -1.291 119 35.313.866 -163.531 39.202.745 13.958.729 120 91.635.867 30.100.905 101.582.840 34.466.521 121 56.158.197 18.591.511 62.994.775 21.201.810 122 19.506.330 6.293.506 21.118.274 7.058.532 123 15.971.340 5.215.888 17.469.791 6.206.179 124 37.978.844 12.525.664 41.045.997 13.616.526 125 55.234.329 33.380.799 30.443.333 9.788.386 126 0 0 0 0 127 128 129 130 3.765.930 227.666 14.500.208 3.844.057 131 21.406.036 11.010.100 29.976.744 11.676.932 132 4.820.553 1.937.666 10.910.345 4.694.968 133 16.416.454 9.082.172 11.895.869 4.616.688 134 7.150.133 2.366.145 135 136 169.029 -9.738 20.397 -869 137 30.918.717 17.012.718 36.394.157 13.308.117 138 8.323.931 5.039.208 8.572.967 2.919.610 139 22.375.458 11.986.146 27.821.190 10.388.507 140 141 219.328 -12.636 142 18.057.481 5.831.144 24.543.421 6.902.986 143 2.617.786 1.820.535 1.457.529 854.468 144 145 146 571.044.589 180.408.936 593.886.170 166.988.485 147 527.380.457 178.988.466 550.929.698 164.122.042 148 43.664.132 1.420.470 42.956.472 2.866.443 149 43.664.132 1.420.470 42.956.472 2.866.443 150 0 0 0 0 151 4.346.069 242.478 5.772.153 1.936.270 152 39.318.063 1.177.992 37.184.319 930.173 153 39.318.063 1.177.992 37.184.319 930.173 154 0 0 0 0 155 39.316.443 1.178.889 37.178.882 928.504 156 1.620 -897 5.437 1.669 157 39.318.063 1.177.992 37.184.319 930.173 158 0 0 0 0 159 160 161 162 163 164 165 166 167 0 0 0 0 168 39.318.063 1.177.992 37.184.319 930.173 169 39.316.443 1.178.889 37.178.882 928.504 170 1.620 -897 5.437 1.669 in period from 01.01.2012. till 30.09.2012. PROFIT AND LOSS ACCOUNT 2. Attributable to minority interests III. TAX ON OTHER COMPREHENSIVE INCOME FOR THE CURRENT PERIOD IV. OTHER COMPREHENSIVE NET PROFIT OR LOSS V. OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD (157+167) 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 5. Gains or losses on effective hedge of a net investment abroad 6. Share of other comprehensive income / loss of associated companies 7. Actuarial gains / losses on defined benefit plans 1. Attributable to equity holders 1. Exchange differences on translation of foreign operations 2. Movements in revaluation reserves of fixed and intangible assets 3. Profit or loss from revaluation of financial assets available for sale 4. Gains or losses on effective cash flow protection 2. Attributable to minority interests I. PROFIT OR LOSS FOR THE CURRENT PERIOD (= 152) Report for other comprehensive income (only for the taxpayer applying IFRS) II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAXATION (159 up to 165) 2. LOSS FOR THE PERIOD (151-148) 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 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

CASH FLOW REPORT – Indirect method
in period from 01.01.2012. till 30.09.2012.
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	43.664.132	42.956.472
2. Depreciation	002	37.978.844	41.045.997
3. Increase of current liabilities	003	17.846.237
4. Decrease of current receivables	004
5. Decrease in stocks	005
6. Other increase of cash flow	006	9.876.530	63.838
I. Total increase of cash flow from operating activities (001 - 006)	007	109.365.743	84.066.307
1. Decrease of current liabilities	008		82.448.429
2. Increase of current receivables	009	8.142.758	19.949.741
3. Increase in stocks	010	2.290.227	12.409.153
4. Other decrease of cash flow	011
II. Total decrease of cash flow from operating activities (008 – 011)	012	10.432.985	114.807.323
A1) NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	013	98.932.758	0
A2) NET DECREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	014	0	30.741.016
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	7.895.757	16.709.482
5. Other cash inflows from investment activities	019
III. Total cash inflows from investment activities (015-019)	020	7.895.757	16.709.482
1. Cash expenditures for purchase of fixed tangible and intangible assets	021	28.095.586	84.383.810
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	28.095.586	84.383.810
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	20.199.829	67.674.328
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		178.405.236
3. Other inflows from financial activities	029	27.438.530
V. Total cash inflows from financial activities (027-029)	030	27.438.530	178.405.236
1. Cash expenditures for the payment of credit principal and debentures	031	1.174.456
2. Cash expenditures for the payment of dividends	032	29.822.493	33.849.849
3. Cash expenditures for financial lease	033	46.437.945	5.110.464
4. Cash expenditures for repurchase of own shares 5. Other cash expenditures from financial activities	034 035	26.301.684	37.452.670
VI. Total cash expenditures from financial activities (031-035)	036	103.736.578	76.412.983
C1) NET INCREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (030-036)	037	0	101.992.253
C2) NET DECREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (036-030)	038	76.298.048	0
Total cash flow increase (013-014+025-026+037-038)	039	2.434.881	3.576.909
Total cash flow decrease (014-013+026-025+038-037)	040
Cash and cash equivalents at the beginning of the period	041	9.561.724	7.512.287
Cash and cash equivalents increase	042	2.434.881	3.576.909
Cash and cash equivalents decrease	043
Cash and cash equivalents at the end of the period	044	11.996.605	11.089.196

REPORT ON CHANGES TO CAPITAL
for period 1.1.2012 till 30.9.2012
Taxpayer: GROUP AD PLASTIK
ITEM	AOP ind.	Preceding year	Current year
1	2	3	4
1. Subscribed capital	001	419.958.400	419.958.400
2. Capital reserves	002	183.120.693	183.513.558
3. Reserves from profit	003	6.865.096	21.637.456
4. Retained profit or loss carried over	004	18.778.919	36.601.695
5. Current year profit or loss	005	64.663.081	37.178.882
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	709.075.344
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	709.058.433
17b. Ascribed to minority interest	019	11.821	16.911

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

Appendix 1
	Reporting period:			01.01.2012.		till	30.09.2012.
						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:	820
	Consolidated report:	NO					(at the end of the trimester) 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. Financial statements (balance sheet, profit and loss statement, cash flow statement, changes in equity and notes to financial
	statements) 2. Interim report,
	3.Statement of the person responsible for compiling financial statements.
				Place of the seal			(signature of the person authorised for representation)

F) OUT-OF-BALANCE ITEMS

AOP ind. Preceding year Current year 2 3 4 001 002 721.399.889 668.219.138 003 36.409.304 36.608.787 004 35.938.378 36.308.266 005 470.926 300.521 006 007 008 009 010 425.253.547 417.923.439 011 135.379.260 136.386.014 012 168.735.416 166.544.680 013 111.303.453 101.148.009 014 6.158.495 5.940.413 015 016 017 3.676.923 7.904.323 018 019 020 258.849.409 212.799.283 021 74.947.666 87.364.576 022 53.478.776 023 52.311.385 52.311.385 024 53.309.155 54.971.185 025 63.855 63.855 026 24.738.572 18.088.282 027 028 029 0 0 030 031 032 033 887.629 887.629 034 271.636.937 279.219.050 035 34.962.353 28.259.968 036 23.698.027 19.487.618 037 2.333.615 1.718.982 038 8.849.908 6.510.074 039 80.803 543.294 040 041 042 043 172.651.281 217.287.386 044 61.634.309 101.561.275 045 59.361.736 40.910.304 046 11.459.976 32.758.144 047 410.133 1.069.460 048 16.925.769 12.445.667 049 22.859.358 28.542.536 050 62.835.622 30.472.505 051 052 2.161.231 12.001.541 053 054 14.977.162 18.425.596 055 056 45.697.229 45.368 057 058 1.187.681 3.199.191 059 116.103.331 113.013.449 060 1.109.140.157 1.060.451.637 D) PREPAYMENTA AND ACCRUED INCOME E) TOTAL ASSETS (001+002+034+059) 5. Investments in to securities 6. Other loan, deposits etc 7. Other financial assets IV. CASH AT BANK AND IN HAND 1. Shares in affiliated undertakings 2. Loans to affiliates 3. Participating interests (shares) 4. Given loans to companies in which exist participating interests 4. Receivables from employees and members of the business 5. Receivables from government and other institutions 6. Other receivables III. CURRENT FINANCIAL ASSETS (051 up to 057) II. RECEIVABLES (044 up to 049) 1. Receivables from associated undertakings 2. Trade receivables 3. Receivables from participating companies 4. Commercial goods 5. Advances for inventories 6. Long term assets held for sale 7. Biological assets I. INVENTORY (036 up to 042) 1. Materials and supplies 2. Work in progress 3. Finished goods 2. Receivables from sales on credit 3. Other receivables V. DEFFERED TAX ASSETS C) CURRENT ASSETS (035+043+050+058) 7. Other fixed financial assets 8. Investment stated in equity method IV. RECEIVABLES (030 up to 032) 1. Receivables from associated undertakings 3. Participating interests (shares) 4. Given loans to companies in which exist participating interests 5. Investments in securities 6. Other loan, deposits etc 9. Investment in real estate III. FIXED FINANCIAL ASSETS (021 up to 028) 1. Shares in affiliated undertakings 2. Loans to affiliated undertakings 5. Biological assets 6. Payments on account for tangible assets 7. Tangible assets in preparation 8. Other tangible assets 1. Land 2. Buildings 3. Plants and machinery 4. Tools, plant & office inventory, furniture & transport means BALANCE SHEET as at 30.09.2012. Taxpayer: AD Plastik d.d. ITEM 4. Advances for purchase of intangible assets 5. Intangible assets in preparation 1 ASSETS A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID B) FIXED ASSETS (003+010+020+029+033) 6. 6. Other intangible assets II. TANGIBLE ASSETS (011 up to 019) I. INTANGIBLE ASSETS (004 up to 009) 1. Development costs 2. Concessions, patents, licenses, trademarks, softwares and other rights 3. Goodwill

061 4.592.542 4.592.542

Balance sheet- Liabilities

LIABILITIES
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	671.856.988	671.741.251
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	21.569.250
1. Legal reserves	066	6.128.852	6.128.852
2. Reserves for own shares	067	378.455	3.586.667
3. Own stocks and shares (deductible item)	068	378.455	3.586.667
4. Statutory reserves	069
5. Other reserves	070	672.884	15.440.398
IV. REVALUATION RESERVES	071	10.185.353	10.185.354
V. RETAINED EARNINGS OR LOSS BROUGHT FORWARD (073-074)	072	0	0
1. Retained earnings	073
2. Loss brought forward	074
VI. CURRENT YEAR PROFIT OR LOSS (076-077)	075	51.835.702	36.952.450
1. Current year profit	076	51.835.702	36.952.450
2. Current year loss	077
VII. MINOR INTEREST	078
B) PROVISIONS (080 up to 082)	079	12.744.194	11.170.653
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	7.782.508
C) LONG TERM LIABILITIES (084 up to 092)	083	79.841.681	86.743.721
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	86.743.721
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) SHORT TERM LIABILITIES (094 do 105)	093	342.489.331	288.507.379
1. Liabilities to related parties	094	35.941.327	43.611.779
2. Commitments for loans, deposits, etc	095
3. Liabilities to banks and other financial institutions	096	92.921.145	70.955.879
4. Liabilities for advances	097	106.411.912	117.471.594
5. Trade payables	098	84.490.786	48.821.291
6. Commitments on securities	099
7. Liabilities to companies in which are participating interests	100	8.971	16.947
8. Liabilities towards employees	101	1.556.189	4.664.327
9. Liabilities for taxes, contributions and other benefits	102	20.501.126	2.590.808
10. Liabilities to share in the result	103	657.875	374.754
11. Amount based on fixed assets intended to sale	104
12. Other short-term liabilities	105
E) DEFERRED PAYMENT OF COSTS AND FUTURE INCOME	106	2.207.963	2.288.633
F) TOTAL LIABILITIES (062+079+083+093+106)	107	1.109.140.157	1.060.451.637
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

6. Profit and loss account

PROFIT AND LOSS ACCOUNT
in period from 01.01.2012. till 30.09.2012. 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	412.263.813	117.398.693	374.833.628	98.976.927
1. Income from sales 2. Other operating income	112 113	408.211.229	115.302.998	373.120.560	98.012.021
II. OPERATING CHARGES (115+116+120+124+125+126+129+130)	114	4.052.584 391.128.607	2.095.695 120.390.062	1.713.068 362.038.109	964.906 102.905.130
1. Changes in the value of inventories of work in progress and finished goods	115	568.215	94.436	2.955.484	-33.414
2. Material charges (117 up to 119)	116	241.852.486	63.560.037	238.916.838	64.879.725
a) Costs of raw materials and consumables	117	191.737.069	53.914.105	165.963.167	44.685.328
b) Costs of sales	118	19.365.669	3.033.920	47.058.750	12.783.591
c) Other external charges	119	30.749.748	6.612.012	25.894.921	7.410.806
3. Staff costs (121 up to 123)	120	67.395.951	22.897.923	67.339.192	21.220.744
a) Salaries and wages	121	40.437.570	13.738.753	40.403.515	12.732.446
b) Costs of taxes and social security	122	16.848.988	5.724.481	16.834.798	5.305.186
c) Duties on wages	123	10.109.393	3.434.689	10.100.879	3.183.112
4. Depreciation	124	29.558.874	9.852.747	29.202.309	9.588.020
5. Other costs	125	50.193.087	23.980.994	23.218.117	7.240.114
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	1.559.994	3.925	406.169	9.941
III. FINANCIAL INCOME (132 up to 136)	131	53.931.273	13.604.150	46.320.737	5.003.104
1. Interests, exchange rate differenc, dividends with affiliates	132	12.118.300	5.474.857	2.989.294	851.814
2. Interests, exch. rate differenc., dividends with non-affiliates	133	25.864.671	8.129.293	8.289.582	1.785.145
3. Part of income from affiliates and participated interests	134	15.948.302		35.041.861	2.366.145
4. Non-realized financial income	135
5. Other financial income	136
IV. FINANCIAL CHARGES (138 up to 141)	137	25.294.396	11.796.434	19.375.167	5.395.330
1. Interests, exchange rate differenc, dividends with affiliates	138	6.824.353	2.709.628	2.542.229	984.866
2. Interests, exch. rate differenc., dividends with non-affiliates	139	18.470.043	9.086.806	16.832.938	4.410.464
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 IX. TOTAL INCOME (111+131+142 + 144)	145 146	466.195.086	131.002.843	421.154.365	103.980.031
X. TOTAL CHARGES (114+137+143 + 145)	147	416.423.003	132.186.496	381.413.276	108.300.460
XI. PROFIT OR LOSS BEFORE TAXATION (146-147)	148	49.772.083	-1.183.653	39.741.089	-4.320.429
1. Profit before taxation (146-147)	149	49.772.083	0	39.741.089	0
2. Loss before taxation (147-146)	150	0	1.183.653	0	4.320.429
XII. PROFIT TAX	151	3.336.360	175.174	2.788.639	1.110.406
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151)	152	46.435.723	-1.358.827	36.952.450	-5.430.835
1. PROFIT FOR THE PERIOD (149-151)	153	46.435.723	0	36.952.450	0
2. LOSS FOR THE PERIOD (151-148)	154	0	1.358.827	0	5.430.835
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
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	0	0	0	0
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

7. Cash flow report – Indirect method

Taxpayer: AD Plastik d.d. AOP ITEM Preceding year Current year ind. 1 2 3 4 CASH FLOW FROM OPERATING ACTIVITIES 1. Profit before taxation 001 49.772.083 39.741.089 2. Depreciation 002 29.558.874 29.202.309 3. Increase of current liabilities 003 4. Decrease of current receivables 14.639.939 004 5. Decrease in stocks 005 5.621.697 6.702.385 6. Other increase of cash flow 006 9.851.736 I. Total increase of cash flow from operating activities (001 - 006) 007 109.444.329 75.645.783 1. Decrease of current liabilities 008 23.863.406 38.334.454 009 2. Increase of current receivables 41.546.223 3. Increase in stocks 010 4. Other decrease of cash flow 011 II. Total decrease of cash flow from operating activities (008 – 011) 012 23.863.406 79.880.677 A1) NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007) 013 85.580.923 0 A2) NET DECREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007) 014 0 4.234.894 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 016 017 3. Cash inflows from interest 4. Cash inflows from dividends 018 7.895.757 16.709.480 5. Other cash inflows from investment activities 019 III. Total cash inflows from investment activities (015-019) 020 7.895.757 16.709.480 1. Cash expenditures for purchase of fixed tangible and intangible assets 021 11.766.621 22.071.684 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 11.766.621 22.071.684 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 3.870.864 5.362.204 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 90.425.747 3. Other inflows from financial activities 029 31.530.900 V. Total cash inflows from financial activities (027-029) 030 31.530.900 90.425.747 1. Cash expenditures for the payment of credit principal and debentures 031 1.152.079 2. Cash expenditures for the payment of dividends 032 29.822.493 33.849.849 3. Cash expenditures for financial lease 033 57.463.289 5.110.464 4. Cash expenditures for repurchase of own shares 034 035 5. Other cash expenditures from financial activities 22.914.676 39.856.826 VI. Total cash expenditures from financial activities (031-035) 036 111.352.537 78.817.139 C1) NET INCREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (030-036) 037 0 11.608.608 C2) NET DECREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (036-030) 038 79.821.637 0 Total cash flow increase (013-014+025-026+037-038) 039 1.888.422 2.011.510 Total cash flow decrease (014-013+026-025+038-037) 040 0 0 Cash and cash equivalents at the beginning of the period 041 3.228.873 1.187.681	CASH FLOW REPORT – Indirect method
	in period from 01.01.2012. till 30.09.2012.
	Cash and cash equivalents increase	042	1.888.422	2.011.510
Cash and cash equivalents decrease 043
Cash and cash equivalents at the end of the period 044 5.117.295 3.199.191

REPORT ON CHANGES TO CAPITAL
for period 1.1.2012 till 30.9.2012
Taxpayer: AD Plastik d.d.
ITEM	AOP ind.	Preceding 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	21.569.250
4. Retained profit or loss carried over	004	0	0
5. Current year profit or loss	005	51.835.702	36.952.450
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	10.185.354
10. Total capital and reserves (AOP 001-009)	010	671.856.988	671.741.251
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.

Marica Jakelić Katija Klepo

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