AD Plastik d.d.

Quarterly Report • Jul 27, 2016

2016

MANAGEMENT INTERIM REPORT

OF AD PLASTIK GROUP AND THE COMPANY AD PLASTIK D.D. SOLIN FOR THE FIRST SIX MONTHS OF 2016

CONTENTS

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Contents

Management Interim Report of AD Plastik Group and the Company AD Plastik d.d. Solin for the period 01.01. - 30.06.2016 A

Profit and loss account Cash flow (indirect method) Statement of changes in equity	24 26 27
	22
Financial statement of the Company AD Plastik	20
Statement of changes in equity	19
Cash flow (indirect method)	18
Profit and loss account	16
Balance sheet	14
Financial statement of AD Plastik Group	12
Other information	11
AD Plastik Group with consolidation of the corresponding ownership parts in affiliated companies	10
Sales revenue per sales markets of AD Plastik Group, without affiliated companies	8
Key indicators of AD Plastik Group 01.01. - 30.06.2016	8
Financial results for the first six months	7
Comment by Marinko Došen, President of the Management Board	6
Sales, EBITDA and net profit	5
	Balance sheet

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Management Interim Report

of AD Plastik Group and the Company AD Plastik d.d. Solin for the period 01.01. - 30.06.2016

Sales, EBITDA and net profit	5
Comment by Marinko Došen, President of the Management Board	6
Financial results for the first six months	7
Key indicators of AD Plastik Group 01.01. - 30.06.2016	8
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	10
Other information	11

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Sales, EBITDA and net profit

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Comment by Marinko Došen, President of the Management Board

Our goals are the achievement of successful business results and profitable business to the satisfaction of all our stakeholders, which is confirmed also by the results for the first six months of this year.

In the first half of the year we have achieved operating income in the amount of 512.2 million kunas, which has decreased by 2.42% in comparison to the same period last year at the level of the Group, while the operating income in Croatia has increased by 1.75%.

Despite a somewhat lesser realization, our business results are in line with the plan and the realized net profit has increased compared to the first half of 2015 and amounts to 28.1 million kunas. Operating income of the Group still registered a decline in the Russian market, while the EU market registered an increase.

A good news for our business is a strengthening of the exchange rate and a recovery of the ruble, and stopping a decline in car sales on the Russian market, which will certainly have a positive effect on the business of our plants in Russia.

The European Union market is growing and our customers are registering double-digit sales growth, which can be also seen in the results of our business operations. Renault, one of our biggest customers, is increasing capacity utilization at the plant Revoz in Novo Mesto, to which they are planning to transfer the production of the vehicle Renault Clio which is their best-selling model. This is their most efficient plant with which AD Plastik maintains a successful cooperation for many years. Currently we are competing for a group of products for a new Clio, which would allow us to fully exploit the capacity of our plants in Zagreb or even their possible expansion and would also ensure the growth already from the next year. Your needs. Our drive. MANAGEMENT INTERIM REPORT FOR THE FIRST SIX MONTHS OF 2016 6MANAGEMENT REPORT

We have ensured a continuity of growth of EBITDA margin also in this period, which is one of our key objectives for this year, along with optimizing business efficiency and reducing loan obligations.

On this occasion I would like to mention also the changes of Members of Management Board and Supervisory Board of AD Plastik, that occurred after the specified reporting period. Further revenue growth in existing and new markets, stable financial operations and strengthening the attractiveness of the company in the investment and financial community are the key objectives during the new term of office of the Management Board and I am sure that we will accomplish them successfully.

Marinko Došen President of the Management Board

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Financial results for the first six months

AD Plastik Group, which consists of AD Plastik d.d. Croatia, ADP d.o.o. Serbia, AD Plastik d.o.o. Slovenia, AO AD Plastik, Russia and ZAO AD Plastik Kaluga, Russia (hereinafter: AD Plastik Group) in first half of 2016 recorded operating income in the amount of 512.2 million kunas which is 2.42% less than in the first half of 2015. Generated revenues are at the level of the business plan, which included a further decline in revenues on the Russian market, but with a much slower movement. Operating expenses of AD Plastik d.d. and AD Plastik Group record a continuing decline in almost all categories of expenses, which affects the growth of the variable gross margin. Your needs. Our drive. MANAGEMENT INTERIM REPORT FOR THE FIRST SIX MONTHS OF 2016 7MANAGEMENT REPORT

AD Plastik Group generated an EBITDA in the amount of 75 million kunas, which is an increase compared to the same period of the previous year, when it amounted to 62.3 million kunas. Despite somewhat lower sales volume, EBITDA growth indicators of 20.39% show a constant improvement of cost efficiency of the Group, and the Group's profit shows a further increase in profitability.

Net profit of AD Plastik Group was realized in the amount of 28.1 million kunas, which is in line with the plan and is an increase, despite somewhat lower realization, compared to the realized profit in the same period of the last year.

In the reporting period AD Plastik d.d. achieved operating income in the amount of 398 million kunas or 1.75% more than the income generated in the first half of 2015. As we have already pointed out in the report for the first three months of 2016, the project Edison has stabilized at slightly lower levels than they were at the start of the serial production.

Key indicators of business of AD Plastik Group

Indicators	2Q 2015	2Q 2016	Index 16/15
Operating income (in thsd. of kuna)	524,864	512,181	97.58
Sales revenue (in thsd. of kuna)	517,813	496,131	95.81
NFD (in thsd. of kuna)	438,322	380,323	86.77
EBITDA 2Q-2016 (in thsd. of kuna)	62,303	75,005	120.39
NFD/EBITDA last 4 quarters	4.67	2.98
EBITDA margin	11.87%	14.64%
Net profit margin	5.15%	5.49%
Sales revenue per sales markets of AD Plastik Group, without affiliated companies		524.9 mkn	512.2 mkn
• Increase of AD Plastik Group's revenue on the market of EU and Serbia by 0.65%		Russia 25%	Russia 23%
• Decrease of AD Plastik Group's revenue in Russia by 11.41%		EU + Serbia 75%	EU + Serbia 77%
Financial Position of AD Plastik Group		2Q 2015	2Q 2016
Trend of improving financial position of AD Plastik d.d. and AD Plastik Group mentioned in last few quarterly reports continues also in the first half of 2016. Cash flows and liquidity of the company are stable. However, we must note that the euro exchange rate is not favorable for the business operation of the AD Plastik d.d., since the entire income is earned on the basis of export of products. In contrast, the strengthening of the ruble on the Russian market has a positive effect on the business of AD Plastik Group. The positions of financial expenses partially show a generated foreign exchange differences out of comprehen sive income, and the positions of financial revenues show a part of the dividends of the affiliated company Euro Auto Plastic Systems s.r.l. Mioveni, Romania. By the end of the year we expect a decision on the payment of the rest of the dividends or a total of about 47 million kunas. In 2016, further measures are planned to optimize financial expenses. Compared to 30.06.2015, credit debt was re duced by an additional 44.1 million kunas.
Your needs. Our drive.			MANAGEMENT INTERIM REPORT FOR THE FIRST SIX MONTHS OF 2016

Sales revenue per sales markets of AD Plastik Group, without affiliated companies

• • Increase of AD Plastik Group's revenue on the market of EU and Serbia by 0.65%
• • Decrease of AD Plastik Group's revenue in Russia by 11.41%

Financial Position of AD Plastik Group

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Sales revenue per sales markets of AD Plastik Group, without affiliated companies (continued)

EU and Serbian markets

Solin, Zagreb, Mladenovac

For EU market and the Serbian market we produce at the sites in Solin and Zagreb in Croatia and in Mladenovac in Serbia. Operating activities in Croatia and Serbia for the third year in a row significantly contribute to the operating results of AD Plastik Group.

In the first half of 2016 realized operating income on sites in Croatia and Serbia is slightly higher compared to the same period of the last year. Decline in revenue compared to the plan has been realized on the Serbian market, because of somewhat smaller orders for Fiat, while operating income on the Croatian market continues to grow significantly.

AD Plastik d.d. won a nomination for the production of painted instrument panel components, painted bumper components, air duct connectors and gear stick covers for the vehicle Fiat 500. Aforementioned components related to this project will be produced at three production plants of AD Plastik Group – in Solin, Zagreb and Mladenovac. According to current information from the buyer, a serial production is planned for the beginning of 2017 at the plant FCA Kragujevac in Serbia. Your needs. Our drive. MANAGEMENT INTERIM REPORT FOR THE FIRST SIX MONTHS OF 2016 9MANAGEMENT REPORT

Expected Company's annual revenue from this project for the full year of production amounts to more than 6 million euros. This nomination is a Company's first nomination in the field of painting technology for FCA Group.

Russian market (subsidiaries)

Vintay (Togliatti), Kaluga

In the first six months of 2016 companies of the AD Plastik Group operating in the Russian Federation have achieved positive business results and revenues higher than planned, which indicates the stabilization of business in this market, although still at a low volume of production and insufficient level of utilization of production capacity.

Total production and sales of the plants in Vintay and Kaluga are intended for the market in Russia. The realization of the planned EBITDA margin and slightly improved net results of the plants is the result of permanent savings on operating costs and monthly adjustments of selling prices with changes in the euro exchange rate to the Russian ruble.

Management Board of AD Plastik Group is making significant efforts in further restructuring and a possible reorganization of business on the Russian market. For this purpose, in late June the company KZA was acceded to the company AD Plastik Kaluga, a share from one of the two remaining shareholders of AO AD Plastik, Vintay has been bought off, while the negotiations on purchase with the other shareholder are in progress.

Company AO AD Plastik, Vintay in Russia, which is a member of AD Plastik Group, won a nomination for the production of injection molded interior trims for the vehicle Ford EcoSport. Aforementioned products related to this project will be produced at the AD Plastik Group's plant in Vintay, Russia. According to current information from the buyer, a serial production is planned for mid-2017 at the plant Ford Sollers, Naberezhnye Chelny in Russia.

Expected annual revenue from this project for the full year of production amounts to 1.5 million euros. Aforementioned Company's nomination creates the opportunity to compete for the other models produced by mentioned manufacturer.

AD Plastik Group with consolidation of the corresponding ownership parts in affiliated companies

Euro APS, FADP Holding, Center for research and development of automotive industry

Profit and loss account of AD Plastik Group

Euro APS, FADP Holding, Center for research and develop ment of automotive industry	With the aim of obtaining a clearer picture of business of AD Plastik Group, we have created an abbreviated consolidated profit and loss account for the first six months of 2015 and 2016 with consolidated profit and loss account of affiliated companies Euro Auto Plastic Systems s.r.l. Mioveni, Romania (50% of ownership of AD Plastik d.d.), Faurecia ADP, Luga, Russia (40% of ownership AD Plastik d.d.), and Center for research and development of automotive in dustry Croatia (24% of ownership AD Plastik d.d.).
Profit and loss account	Positions	2Q 2015	2Q 2016	Index
of AD Plastik Group	OPERATING REVENUES	761,729	735,953	97
with consolidation of the corre	OPERATING EXPENSES	715,235	667,246	93
sponding ownership parts in af	Material costs	473,417	430,123	91
filiated companies for the first six months in 2015 and 2016 in thsd. of kuna	Staff costs	121,059	115,873	96
	Amortization	42,695	42,557	100
	Other costs	78,064	78,693	101
	FINANCIAL REVENUE	65,009	16,182	25
	FINANCIAL EXPENSES	79,812	50,383	63
	TOTAL REVENUE	826,738	752,135	91
	TOTAL EXPENSES	795,047	717,629	90
	Profit before tax	31,691	34,506	109
	Profit tax	4,684	6,377	136
	PROFIT OF THE PERIOD	27,007	28,129	104
	EBITDA	89,189	111,264	125
	Results of affiliated companies Euro Auto Plastic Systemsa s.r.l. Mioveni, Ro mania (50% of ownership of AD Plastik d.d.), Faurecia ADP, Luga, Russia (40% of ownership of AD Plastik d.d.) and Center for research and development of automotive industry Croatia (24% of ownership of AD Plastik d.d.), are included in the results of AD Plastik Group by equity method. As it is seen from the table the operating income of AD Plastik Group with con solidated corresponding part ownership in affiliated companies has recorded a slight decrease of 3% compared to the same period of the last year. EBITDA
	in the same period recorded an increase of 25% compared to the same period of the last year and totaled 111.3 million kunas. Affiliated companies have no financial liabilities arising from credits to exter nal entities, except the liabilities arising from credits obtained from the owner.
Your needs. Our drive.			MANAGEMENT INTERIM REPORT FOR THE FIRST SIX MONTHS OF 2016

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Other information

Resignation of AD Plastik Management Board member

New Supervisory Board members of AD Plastik d.d.

On April 06, 2016, Denis Fusek resigned from his duty as a member of the Management Board of AD Plastik d.d. for personal reasons with the termination of mandate on April 30, 2016.

At the meeting held on July 14, 2016 the General Assembly of Shareholders of AD PLASTIK d.d. (hereinafter: the Company) passed the decision on the election of two new members of the Supervisory Board of the Company, as follows: Your needs. Our drive. MANAGEMENT INTERIM REPORT FOR THE FIRST SIX MONTHS OF 2016 11MANAGEMENT REPORT

Ivica Tolić, Law Graduate and Hrvoje Jurišić, Graduate Engineer of Industrial Management. Term of office of the elected members of the Supervisory Board starts on July 20, 2016 and lasts for 4 (four) years.

Expiration of term of office for Supervisory board members of Ad Plastik d.d.

Appointment of the Management Board Members of AD Plastik d.d.

Term of office of the current President of the Supervisory Board of AD PLAS-TIK d.d. Josip Boban and the Deputy President of the Supervisory Board Nikola Zovko expired on July 19, 2016.

At the meeting held on July 14, 2016, the Supervisory Board of the Company, among other things, passed a decision on the appointment of the Management Board Members of the Company as follows:

• • Marinko Došen, President of the Management Board;
• • Katija Klepo, Member of the Management Board Sales and Strategic Purchasing;
• • Sanja Biočić, Member of the Management Board Finance, Accounting, Controlling and IT.
• • Mladen Peroš, Member of the Management Board Development & Research and purchase of tools;

Term of office of the Management Board President and the Management Board members shall last for 4 (four) years as from July 20, 2016.

Term of office of Members of the Management Board Ivica Tolić and Hrvoje Jurišić expired on July 19, 2016 and their term of office as Members of the Supervisory Board of the Company began on July 20, 2016.

ACONTENTS

of AD Plastik Group

Balance sheet	14
Profit and loss account	16
Cash flow (indirect method)	18
Statement of changes in equity	19

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AD PLASTIK d.d.

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CONTENTS

AD PLASTIK GROUP

Appendix 1 Quarterly Financial Report, AD Plastik Group

Reporting period:	01.01.2016.	to	30.06.2016.

Quarterly Financial Report of the entrepreneur TFI-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:		informacije@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 reporting period):		2,134
	Consolidated report:	YES	NCA code:	2932
	Names of consolidation subjects (according to IMSF):	Seat:		REG. NO.:
	AD PLASTIK d.d.	Solin, Croatia		03440494
	AO AD PLASTIK			Samara, Russian Federation 1036300221935
	AD PLASTIK d.o.o.	Novo Mesto, Slovenia		1214985000
	ZAO AD PLASTIK KALUGA		Kaluga, Russian Federation	1074710000320
	ADP d.o.o.	Mladenovac, Serbia		20787538
	Bookkeeping service:
	Contact person:	Krešimir Jurun
	(only the name and surname of the contact person to be entered)
	Telephone:	021/206-663
	Fax:	021/275-663
	E-mail address:		kresimir.jurun@adplastik.hr
	Name and surname:	Sanja Biočić
	(person authorised for representation)
	Documentation for publishing:
	Financial statements (balance sheet, profit and loss statement, cash flow statement, 1. 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)
Your needs. Our drive.				MANAGEMENT INTERIM REPORT FOR THE FIRST SIX MONTHS OF 2016

• 1. Financial statements (balance sheet, profit and loss statement, cash flow statement, changes in equity and notes to financial statements)
• 1. Interim report
• 1. Statement of the person responsible for compiling financial statements

Balance sheet as at 30.06.2016.

Taxpayer: AD Plastik Group

	Item	AOP ind.	Preceding period	Current period
	1	2	3	4
ASSETS
A	RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID	001
B	FIXED ASSETS (003+010+020+029+033)	002	1,005,948,798	973,692,309
	I. Intangible assets (004 up to 009)	003	133,591,715	126,222,033
	1 Development costs	004	80,546,532	75,853,280
	2 Concessions, patents, licenses, trademarks, softwares and other rights	005	3,564,101	3,171,115
	3 Goodwill 4 Advances for purchase of intangible assets	006 007	7,612,311	8,383,085
	5 Intangible assets in preparation	008	38,230,588	35,416,750
	6 Other intangible assets	009	3,638,183	3,397,803
	II. Tangible assets (011 up to 019)	010	695,403,772	702,323,379
	1 Land	011	141,133,105	143,155,550
	2 Buildings	012	261,882,421	269,982,838
	3 Plants and machinery	013	266,826,200	255,516,663
	4 Tools, plant & office inventory, furniture & transport means	014	14,919,960	14,922,954
	5 Biological assets	015
	6 Payments on account for tangible assets	016	23,415	176,193
	7 Tangible assets in preparation	017	10,543,917	18.344,238
	8 Other tangible assets	018	74,754	224,943
	9 Investment in real estate	019
	III. Fixed financial assets (021 up to 028)	020	132,592,958	107,215,898
	1 Shares in affiliated undertakings	021
	2 Loans to affiliated undertakings	022
	3 Participating interests (shares)	023	86,507,627	85,434,250
	4 Given loans to companies in which exist participating interests	024	37,733,977	13,596,950
	5 Investments in securities	025	61,700	61,700
	6 Other loans, deposits etc	026	8,289,654	8,122,998
	7 Other fixed financial assets	027
	8 Investment stated in equity method	028
	IV. Receivables (030 up to 032)	029	14,175,985	15,583,907
	1 Receivables from associated undertakings	030
	2 Receivables from sales on credit	031
	3 Other receivables	032	14,175,985	15,583,907
	V. Deffered tax assets	033	30,184,368	22,347,092
C	CURRENT ASSETS (035+043+050+058)	034	294,238,847	360,728,238
	I. Inventory (036 up to 042)	035	97,786,225	99,638,800
	1 Materials and supplies	036	65,038,743	70,648,436
	2 Work in progress	037	4,263,670	5,769,242
	3 Finished goods	038	18,576,488	15,297,110
	4 Commercial goods	039	9,907,324	7,924,012
	5 Advances for inventories	040
	6 Long term assets held for sale	041
	7 Biological assets	042
	II. Receivables (044 up to 049)	043	177,953,111	206,593,940
	1 Receivables from associated undertakings	044
	2 Trade receivables	045	137,336,315	157,449,414
	3 Receivables from participating companies	046	6,408,483	11,067,047
	4 Receivables from employees and members of the business	047	382,197	560,748
	5 Receivables from government and other institutions	048	10,182,444	12,375,913
	6 Other receivables	049	23,643,672	25,140,818
	III. Current financial assets (051 up to 057)	050	6,115,737	36,705,827
	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		27,957,727
	5 Investments in to securities	055
	6 Other loans, deposits etc	056	6,115,737	8,748,100
	7 Other financial assets	057
	IV. Cash at bank and in hand	058	12,383,774	17,789,671
D	PREPAYMENT AND ACCRUED INCOME	059	45,189,479	38,302,061
E	TOTAL ASSETS (001+002+034+059)	060	1,345,377,124	1,372,722,608
F	OUT-OF-BALANCE ITEMS	061	29,591,225	30,502,777

Balance sheet as at 30.06.2016.

Taxpayer: AD Plastik Group

Item 1	AOP ind. 2	Preceding period 3	Current period 4
LIABILITIES
CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	622,955,516	676,717,349
I. SUBSCRIBED SHARE CAPITAL	063	419,958,400	419,958,400
II. CAPITAL RESERVES	064	183,481,905	183,113,293
III. RESERVES FROM GAIN (066+067-068+069+070)	065	31,549,516	27,960,045
1 Legal reserves	066	6,139,440	6,139,729
2 Reserves for own shares	067	3,107,594	3,563,379
3 Own stocks and shares (deductible item)	068	3,107,594	3,563,379
4 Statutory reserves	069
5 Other reserves	070	25,410,076	21,820,316
IV. REVALUATION RESERVES	071	-72,895,692	-34,048,597
V. RETAINED EARNINGS OR LOSS BROUGHT FORWARD (073-074)	072	14,641,039	51,608,732
1 Retained earnings	073	14,641,039	51,608,732
2 Loss brought forward	074
VI. CURRENT YEAR PROFIT OR LOSS (076-077)	075	46,225,069	28,127,500
1 Current year profit	076	46,225,069	28,127,500
2 Current year loss	077
VII. MINOR INTEREST	078	-4,721	-2,024
PROVISIONS (080 up to 082)	079	9,459,516	7,914,749
1 Provisions for pensions, severance pay and similar obligations	080	1,724,443	1,724,443
2 Provisions for tax liabilities	081
3 Other provisions	082	7,735,073	6,190,306
LONG TERM LIABILITIES (084 up to 092)	083	298,864,762	294,738,893
1 Liabilities to related parties 2 Commitments for loans, deposits, etc	084 085
3 Liabilities to banks and other financial institutions	086	262,592,153	260,080,480
4 Liabilities for advances	087
5 Trade payables	088	28,487,988	26,423,116
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	7,784,621	8,235,297
SHORT TERM LIABILITIES (094 do 105)	093	396,477,901	382,357,635
1 Liabilities to related parties	094
2 Commitments for loans, deposits, etc	095	1,983,051
3 Liabilities to banks and other financial institutions	096	161,117,273	143,636,486
4 Liabilities for advances	097	23,613,360	24,961,172
5 Trade payables	098	180,510,796	186,615,319
6 Commitments on securities	099
7 Liabilities to companies in which are participating interests	100	896,374	873,543
8 Liabilities towards employees	101	9,898,976	9,732,121
9 Liabilities for taxes, contributions and other benefits	102	15,041,837	13,106,357
10 Liabilities to share in the result	103	27,856	27,856
11 Amount based on fixed assets intended to sale	104
	105	3,388,378	3,404,781
12 Other short-term liabilities			10,993,982
DEFERRED PAYMENT OF COSTS AND FUTURE INCOME	106	17,619,429
TOTAL LIABILITIES (062+079+083+093+106)	107	1,345,377,124	1,372,722,608
OUT-OF BALANCE ITEMS	108	29,591,225	30,502,777
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	622,960,237	676,719,373

A	CAPITAL AND RESERVES
	1 Ascribed to the holders of the parent company capital	109	622,960,237	676,719,373
	2 Ascribed to minority interest	110	-4,721	-2,024

Profit and loss account Reporting period: 01.01.2016. to 30.06.2016.

Taxpayer: AD Plastik Group

Item 1	AOP ind. 2	Preceding period Cumulative 3	Quarter 4	Current period Cumulative 5	Quarter 6
OPERATING TURNOVER (112+113)	111	524,863,979	263,459,220	512,181,415	254,034,288
1 Income from sales	112	517,813,200	258,293,858	496,130,747	244,791,078
2 Other operating income	113	7,050,779	5,165,362	16,050,668	9,243,210
OPERATING CHARGES (115+116+120+124+125+126+129+130)	114	498,501,103	251,302,471	474,648,359	233,509,911
1 Changes in the value of inventories of work in progress and finished goods	115	2,064,463	-2,648,232	2,951,494	1,752,590
2 Material charges (117 up to 119)	116	325,333,383	164,786,974	297,081,443	138,040,671
a Costs of raw materials and consumables	117	265,165,446	133,183,309	254,273,261	128,680,379
b Costs of sales	118	26,192,502	12,746,116	10,462,737	-4,170,970
c Other external charges	119	33,975,435	18,857,549	32,345,445	13,531,262
3 Staff costs (121 up to 123)	120	89,784,450	45,195,335	84,593,087	42,856,372
a Salaries and wages	121	55,194,201	27,725,052	52,012,606	26,424,095
b Costs of taxes and social security	122	19,317,904	9,771,274	18,589,322	9,309,093
c Duties on wages	123	15,272,345	7,699,009	13,991,159	7,123,184
4 Depreciation	124	35,940,285	18,168,731	37,472,318	18,571,324
5 Other costs	125	40,234,533	22,294,892	44,430,127	30,432,034
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				-2,341
8 Other operating expenses	130	5,143,989	3,504,771	8,119,890	1,859,261
FINANCIAL INCOME (132 up to 136)	131	69,582,764	29,525,191	16,181,716	2,345,945
1 Interests, exchange rate difference, dividends with affiliates	132	46,644,538	19,985,912	2,959,289	-5,926,641
2 Interests, exchange rate difference, dividends with non-affiliates	133	18,327,706	6,930,051	10,628,090	6,822,335
3 Part of income from affiliates and participated interests	134	4,610,520	2,609,228	2,594,337	1,450,251
4 Non-realized financial income	135
5 Other financial income	136
FINANCIAL CHARGES (138 up to 141)	137	80,865,692	36,505,395	45,252,424	18,544,299
1 Interests, exchange rate difference, dividends with affiliates	138	49,443,053	20,163,487	9,050,753	-2,016,245
2 Interests, exch. rate difference, dividends with non-affiliates	139	31,101,689	16,101,236	36,201,671	20,560,544
3 Non-realized financial charges	140
4 Other financial charges	141	320,950	240,672
SHARE OF PROFIT FROM ASSOCIATED COMPANIES	142	23,788,156	13,527,052	19,728,436	9,265,751
SHARE OF LOSS FROM ASSOCIATED COMPANIES	143	11,872,034	6,022,226
EXTRAORDINARY – OTHER INCOME	144
EXTRAORDINARY – OTHER CHARGES	145
TOTAL INCOME (111+131+142 + 144)	146	618,234,899	306,511,463	548,091,567	265,645,984
TOTAL CHARGES (114+137+143 + 145)	147	591,238,829	293,830,092	519,900,781	252,054,210
PROFIT OR LOSS BEFORE TAXATION (146-147)	148	26,996,070	12,681,371	28,190,786	13,591,774
1 Profit before taxation (146-147)	149	26,996,070	12,681,371	28,190,786	13,591,774
2 Loss before taxation (147-146)	150	0	0	0	0
PROFIT TAX	151	-11,265	-11,265	62,025	20,990
PROFIT OR LOSS FOR THE PERIOD (148-151)	152	27,007,335	12,692,636	28,128,761	13,570,784
1 PROFIT FOR THE PERIOD (149-151)	153	27,007,335	12,692,636	28,128,761	13,570,784
2 LOSS FOR THE PERIOD (151-148)	154	0	0	0	0

Profit and loss account Reporting period: 01.01.2016. to 30.06.2016.

Taxpayer: AD Plastik Group

		Preceding period AOP Cumulative Quarter ind.		Current period
1	2	3	4	Cumulative 5	Quarter 6
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	27,003,856	12,691,711	28,127,500	13,570,366
2 Attributable to minority interests	156	3,480	926	1,261	418
Report for other comprehensive income (only for the taxpayer applying IFRS)
PROFIT OR LOSS FOR THE CURRENT PERIOD (= 152) OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAXATION	157	27,007,336	12,692,637	28,128,761	13,570,785
(159 up to 165)	158	31,456,558	28,069,635	28,732,774	21,329,215
1 Exchange differences on translation of foreign operations	159	34,004,950	98,104,613	26,903,829	16,833,494
2 Movements in revaluation reserves of fixed and intangible assets	160	-2,548,392	-70,034,978	1,828,945	4,495,721
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 com panies	164
7 Actuarial gains / losses on defined benefit plans	165
TAX ON OTHER COMPREHENSIVE INCOME FOR THE CURRENT PERIOD	166	6,291,820	5,654,803	5,656,626	4,174,333
OTHER COMPREHENSIVE NET PROFIT OR LOSS (158-166)	167	25,164,738	22,414,832	23,076,148	17,154,882
OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD (157+167)	168	52,172,074	35,107,469	51,204,909	30,725,667
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 2 Attributable to minority interests	169 170	52,385,804 9,770	35,319,807 11,162	51,198,580 6,329	30,722,085 3,582

VI.	OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD
	1 Attributable to equity holders	169	52,385,804	35,319,807	51,198,580	30,722,085
	2 Attributable to minority interests	170	9,770	11,162	6,329	3,582

CONTENTS

Cash flow statement indirect method Reporting period: 01.01.2016. to 30.06.2016.

Taxpayer: AD Plastik Group

	AOP ind.	Preceding period	Current period
1	2	3	4
CASH FLOW FROM OPERATING ACTIVITIES
1 Profit before taxation 2 Depreciation	001 002	26,996,071 35,940,285	28,190,786 37,472,318
3 Increase of current liabilities	003		10,168,644
4 Decrease of current receivables	004
5 Decrease in stocks	005
6 Other increase of cash flow	006	16,016,343	45,703,064
I. Total increase of cash flow from operating activities (001 - 006)	007	78,952,698	121,534,812
1 Decrease of current liabilities	008	11,261,701
2 Increase of current receivables	009	56,732,061	43,690,698
3 Increase in stocks	010	1,139,966	1,852,575
4 Other decrease of cash flow	011	959,956	20,462,752
II. Total decrease of cash flow from operating activities (008 – 011)	012	70,093,684	66,006,025
A1 NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	013	8,859,014	55,528,786
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		7,555,445
2 Cash inflows from sale of ownership and debt instruments	016		128,500
3 Cash inflows from interest	017	899,448
4 Cash inflows from dividends	018	20,899,237	14,921,369
5 Other cash inflows from investment activities	019	19,404,122	615,000
III. Total cash inflows from investment activities (015-019)	020	41,202,807	23,220,314
1 Cash expenditures for purchase of fixed tangible and intangible assets	021	32,815,015	26,990,825
2 Cash expenditures for acquisition of ownership and debt instruments	022
	023		3,274,776
3 Other cash expenditures from investment activities
IV. Total cash expenditures from investment activities (021-023)	024	32,815,015	30,265,601
	025	8,387,792	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	026	0	7,045,287
	027
1 Cash inflows from issuing ownership and debt financial instruments 2 Cash inflows from credit principal, debentures, loans and other borrowings	028	125,820,803	66,533,807
3 Other inflows from financial activities	029	30,047,158
V. Total cash inflows from financial activities (027-029)	030	155,867,961	66,533,807
1 Cash expenditures for the payment of credit principal and debentures	031	172,398,399	91,968,068
2 Cash expenditures for the payment of dividends	032		16,671,288
3 Cash expenditures for financial lease	033		972,053
4 Cash expenditures for repurchase of own shares	034
	035
	036	172,398,399	109,611,409
	037	0	0
5 Other cash expenditures from financial activities VI. Total cash expenditures from financial activities (031-035) C1 NET INCREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (030-036) C2 NET DECREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (036-030)	038	16,530,438	43,077,602
Total cash flow increase (013-014+025-026+037-038)	039	716,368	5,405,897
Total cash flow decrease (014-013+026-025+038-037)	040
Cash and cash equivalents at the beginning of the period	041	7,805,591	12,383,774
Cash and cash equivalents increase	042	716,368	5,405,897
Cash and cash equivalents decrease Cash and cash equivalents at the end of the period	043 044	8,521,959	17,789,671

Statement of changes in equity Reporting period: 01.01.2016. to 30.06.2016.

Taxpayer: AD Plastik Group

	Item 1	AOP ind. 2	Preceding year 3	Current period 4
	1 Subscribed capital	001	419,958,400	419,958,400
	2 Capital reserves	002	183,512,721	183,113,293
	3 Reserves from profit	003	32,062,636	27,960,045
	4 Retained profit or loss carried over	004	32,708,084	51,608,732
	5 Current year profit or loss	005	27,003,856	28,127,500
	6 Revalorisation of fixed material assets	006		27,383,349
	7 Revalorisation of intangible assets	007
	8 Revalorisation of financial assets available for sale	008
	9 Other revalorisation	009	-18,213,827	-61,431,946
	10 Total equity and reserves (AOP 001-009)	010	677,031,870	676,719,373
	11 Exchange rate variations from net investments into foreign business operations	011	34,004,950	26,903,829
	12 Current and deferred taxes (part)	012	-6,291,820	-5,656,626
	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	-2,548,392	32,514,630
	17 Total equity increase or decrease (AOP 011 - 016)	017	25,164,738	53,761,833
17 a	Ascribed to holders of the holders company capital	018	677,031,693	53,755,834
17 b	Ascribed to minority interest	019	177	5,999

Financial statement

of the Company AD Plastik d.d.

Balance sheet	22
Profit and loss account	24
Cash flow (indirect method)	26
Statement of changes in equity	27

C

AD PLASTIK d.d.

AD PLASTIK GROUP

A

CONTENTS

Appendix 1 Quarterly Financial Report, AD Plastik d.d.

Reporting period: 01.01.2016. to 30.06.2016.

Quarterly Financial Report of the entrepreneur TFI-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:			informacije@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 reporting period):		1,194
	Consolidated report:	NO	NCA code:	2932
	Names of consolidation subjects (according to IMSF):	Seat:		REG. NO.:
	Bookkeeping service:
	Contact person:	Sandra Capan
	(only the name and surname of the contact person to be entered)
	Telephone:	021/206-651
	Fax:	021/275-651
	E-mail address:		sandra.capan@adplastik.hr
	Name and surname:	Sanja Biočić
	(person authorised for representation)
	Documentation for publishing:
	Financial statements (balance sheet, profit and loss statement, cash flow statement, 1. 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)
Your needs. Our drive.				MANAGEMENT INTERIM REPORT FOR THE FIRST SIX MONTHS OF 2016

• 1. Financial statements (balance sheet, profit and loss statement, cash flow statement, changes in equity and notes to financial statements)
• 1. Interim report
• 1. Statement of the person responsible for compiling financial statements

as at 30.06.2016. Balance sheet Taxpayer: AD Plastik d.d.

	Item	AOP ind.	Preceding period	Current period
	1	2	3	4
ASSETS
A	RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID	001
B	FIXED ASSETS (003+010+020+029+033)	002	1,022,628,683	967,883,949
	I. Intangible assets (004 up to 009)	003	99,185,975	92,985,667
	1 Development costs	004	63,178,571	60,075,252
	2 Concessions, patents, licenses, trademarks, softwares and other rights	005	1,403,157	1,196,831
	3 Goodwill	006
	4 Advances for purchase of intangible assets	007
	5 Intangible assets in preparation	008	34,604,247	31,713,584
	6 Other intangible assets	009
	II. Tangible assets (011 up to 019)	010	511,441,985	507,418,084
	1 Land	011	139,976,599	139,976,599
	2 Buildings	012	193,773,750	191,970,314
	3 Plants and machinery	013	157,835,416	147,536,385
	4 Tools, plant & office inventory, furniture & transport means	014	12,045,278	12,175,323
	5 Biological assets	015
	6 Payments on account for tangible assets	016
	7 Tangible assets in preparation	017	7,810,942	15,759,463
	8 Other tangible assets	018
	9 Investment in real estate	019
	III. Fixed financial assets (021 up to 028)	020	187,263,126	164,587,928
	1 Shares in affiliated undertakings	021	44,376,245	44,376,245
	2 Loans to affiliated undertakings	022	75,023,792	76,652,474
	3 Participating interests (shares)	023	21,779,205	21,779,155
	4 Given loans to companies in which exist participating interests	024	37,733,977	13,596,950
	5 Investments in securities	025	61,700	61,700
	6 Other loans, deposits etc	026	8,288,207	8,121,404
	7 Other fixed financial assets	027
	8 Investment stated in equity method	028
	IV. Receivables (030 up to 032)	029	212,619,383	194,060,953
	1 Receivables from associated undertakings	030	198,443,398	178,477,046
	2 Receivables from sales on credit	031
	3 Other receivables	032	14,175,985	15,583,907
	V. Deffered tax assets	033	12,118,214	8,831,317
C	CURRENT ASSETS (035+043+050+058)	034	213,790,616	280,190,681
	I. Inventory (036 up to 042)	035	50,539,344	48,544,412
	1 Materials and supplies	036	35,086,842	34,556,133
	2 Work in progress	037	3,416,353	3,663,218
	3 Finished goods	038	9,812,364	7,966,529
	4 Commercial goods	039	2,223,785	2,358,532
	5 Advances for inventories	040
	6 Long term assets held for sale	041
	7 Biological assets	042
	II. Receivables (044 up to 049)	043	142,268,895	180,605,745
	1 Receivables from associated undertakings	044	11,253,092	34,636,539
	2 Trade receivables	045	101,416,624	109,680,102
	3 Receivables from participating companies	046	4,883,018	9,623,960
	4 Receivables from employees and members of the business	047	302,213	383,698
	5 Receivables from government and other institutions	048	5,254,298	6,053,153
	6 Other receivables	049	19,159,650	20,228,293
	III. Current financial assets (051 up to 057)	050	17,568,690	44,669,839
	1 Shares in affiliated undertakings	051
	2 Loans to affiliates	052	13,368,967	13,154,802
	3 Participating interests (shares)	053
	4 Given loans to companies in which exist participating interests	054		27,957,727
	5 Investments in to securities	055
	6 Other loans, deposits etc	056	4,199,723	3,557,310
	7 Other financial assets	057
	IV. Cash at bank and in hand	058	3,413,687	6,370,685
D	PREPAYMENT AND ACCRUED INCOME	059	36,922,559	28,992,379
E	TOTAL ASSETS (001+002+034+059)	060	1,273,341,858	1,277,067,009
F	OUT-OF-BALANCE ITEMS	061	4,592,542	4,762,751

A

Balance sheet as at 30.06.2016.

Taxpayer: AD Plastik d.d.

	Item 1	AOP ind. 2	Preceding period 3	Current period 4
	LIABILITIES
A
	CAPITAL AND RESERVES (063+064+065+071+072+075+078) I. SUBSCRIBED SHARE CAPITAL	062 063	644,971,641 419,958,400	668,724,823 419,958,400
	II. CAPITAL RESERVES	064	183,075,797	183,075,797
	III. RESERVES FROM GAIN (066+067-068+069+070)	065	31,538,928	27,592,011
	1 Legal reserves	066	6,128,852	6,128,852
	2 Reserves for own shares	067	3,107,594	3,563,379
	3 Own stocks and shares (deductible item)	068	3,107,594	3,563,379
	4 Statutory reserves	069
	5 Other reserves	070	25,410,076	21,463,159
	IV. REVALUATION RESERVES	071	-34,876,517	-16,774,803
	V. RETAINED EARNINGS OR LOSS BROUGHT FORWARD (073-074)	072	12,724,371	32,550,662
	1 Retained earnings	073	12,724,371	32,550,662
	2 Loss brought forward	074
	VI. CURRENT YEAR PROFIT OR LOSS (076-077)	075	32,550,662	22,322,756
	1 Current year profit	076	32,550,662	22,322,756
	2 Current year loss	077
	VII. MINOR INTEREST	078
	PROVISIONS (080 up to 082)	079	8,914,024	7,314,024
	1 Provisions for pensions, severance pay and similar obligations	080	1,724,443	1,724,443
	2 Provisions for tax liabilities	081
	3 Other provisions	082	7,189,581	5,589,581
	LONG TERM LIABILITIES (084 up to 092)	083	265,493,900	263,835,346
	1 Liabilities to related parties	084
	2 Commitments for loans, deposits, etc	085
	3 Liabilities to banks and other financial institutions	086	246,080,090	243,528,102
	4 Liabilities for advances	087
	5 Trade payables	088	19,263,124	18,918,026
	6 Commitments on securities 7 Liabilities to companies in which are participating interests	089 090
	8 Other long term liabilities	091
	9 Deferred tax liabilities	092	150,686	1,389,218
	SHORT TERM LIABILITIES (094 do 105)	093	338,674,802	329,285,349
	1 Liabilities to related parties	094	17,875,305	18,675,062
	2 Commitments for loans, deposits, etc	095
	3 Liabilities to banks and other financial institutions	096	141,457,550	132,910,115
	4 Liabilities for advances	097	6,826,368	8,726,518
	5 Trade payables	098	155,575,261	154,735,665
	6 Commitments on securities	099
	7 Liabilities to companies in which are participating interests	100	7,808	5,020
	8 Liabilities towards employees	101	8,045,263	7,595,179
	9 Liabilities for taxes, contributions and other benefits	102	6,190,380	3,940,100
	10 Liabilities to share in the result	103	27,856	27,856
	11 Amount based on fixed assets intended to sale	104
	12 Other short-term liabilities	105	2,669,011	2,669,834
	DEFERRED PAYMENT OF COSTS AND FUTURE INCOME	106	15,287,491	7,907,467
	TOTAL LIABILITIES (062+079+083+093+106)	107	1,273,341,858	1,277,067,009
	OUT-OF BALANCE ITEMS	108	4,592,542	4,762,751
	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: 01.01.2016. to 30.06.2016.

Taxpayer: AD Plastik Group

Item	AOP	Preceding period		Current period
1	ind. 2	Cumulative 3	Quarter 4	Cumulative 5	Quarter 6
OPERATING TURNOVER (112+113)	111	391,131,603	185,558,399	397,975,290	206,090,659
1 Income from sales	112	387,061,508	182,243,455	393,966,842	203,847,486
2 Other operating income	113	4,070,095	3,314,944	4,008,448	2,243,173
OPERATING CHARGES (115+116+120+124+125+126+129+130)	114	371,386,481	175,234,531	373,398,613	193,932,223
1 Changes in the value of inventories of work in progress and finished goods	115	961,729	-2,282,870	1,598,970	1,253,861
2 Material charges (117 up to 119)	116	255,590,543	120,500,061	245,987,357	121,123,540
a Costs of raw materials and consumables	117	201,752,120	93,013,419	191,224,084	93,210,946
b Costs of sales	118	27,443,416	13,293,049	30,425,631	15,559,137
c Other external charges	119	26,395,007	14,193,593	24,337,642	12,353,457
3 Staff costs (121 up to 123)	120	63,043,207	31,489,176	62,981,952	31,509,971
a Salaries and wages	121	37,825,924	18,893,506	37,789,171	18,905,982
b Costs of taxes and social security	122	15,760,802	7,872,294	15,745,488	7,877,493
c Duties on wages	123	9,456,481	4,723,376	9,447,293	4,726,496
4 Depreciation	124	21,120,759	9,635,750	24,020,299	11,885,086
5 Other costs	125	28,641,474	14,703,442	33,050,055	24,981,456
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	2,028,769	1,188,972	5,759,980	3,178,309
FINANCIAL INCOME (132 up to 136)	131	52,883,903	6,491,576	31,704,939	13,193,592
1 Interests, exchange rate difference, dividends with affiliates	132	2,954,319	1,744,095	2,425,456	1,269,489
2 Interests, exchange rate difference, dividends with non-affiliates	133	3,391,874	2,161,351	6,139,116	5,040,782
3 Part of income from affiliates and participated interests	134	46,537,710	2,586,130	23,140,367	6,883,321
4 Non-realized financial income	135
5 Other financial income	136
FINANCIAL CHARGES (138 up to 141)	137	53,480,041	13,420,245	33,958,860	20,138,154
1 Interests, exchange rate difference, dividends with affiliates	138	71,023	-132,174	1,394,489	1,265,894
2 Interests, exchange rate difference, dividends with non-affiliates	139	15,910,730	9,956,263	32,564,371	18,872,260
3 Non-realized financial charges	140	37,498,288	3,596,156
4 Other financial charges	141
SHARE OF PROFIT FROM ASSOCIATED COMPANIES	142
SHARE OF LOSS FROM ASSOCIATED COMPANIES	143
EXTRAORDINARY – OTHER INCOME	144
EXTRAORDINARY – OTHER CHARGES	145
TOTAL INCOME (111+131+142 + 144)	146	444,015,506	192,049,975	429,680,229	219,284,251
TOTAL CHARGES (114+137+143 + 145)	147	424,866,522	188,654,776	407,357,473	214,070,377
PROFIT OR LOSS BEFORE TAXATION (146-147)	148	19,148,984	3,395,199	22,322,756	5,213,874
1 Profit before taxation (146-147)	149	19,148,984	3,395,199	22,322,756	5,213,874
2 Loss before taxation (147-146)	150	0	0	0	0
PROFIT TAX	151	-11,265	-11,265
PROFIT OR LOSS FOR THE PERIOD (148-151)	152	19,160,249	3,406,464	22,322,756	5,213,874
1 PROFIT FOR THE PERIOD (149-151)	153	19,160,249	3,406,464	22,322,756	5,213,874
2 LOSS FOR THE PERIOD (151-148)	154	0	0	0	0

Profit and loss account Reporting period: 01.01.2016. to 30.06.2016.

Taxpayer: AD Plastik Group

Item	AOP	Preceding period		Current period
1	ind. 2	Cumulative 3	Quarter 4	Cumulative 5	Quarter 6
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
2 Attributable to minority interests	156
Report for other comprehensive income (only for the taxpayer applying IFRS)
PROFIT OR LOSS FOR THE CURRENT PERIOD (= 152)	157	19,160,249	3,406,464	22,322,756	5,213,873
OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAXATION (159 up to 165)	158	5,656,158	-365,715	3,015,632	3,015,632
1 Exchange differences on translation of foreign operations	159	5,656,158	-365,715	3,015,632	3,015,632
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 com panies	164
7 Actuarial gains / losses on defined benefit plans	165
TAX ON OTHER COMPREHENSIVE INCOME FOR THE CURRENT PERIOD	166	1,131,232	-73,143	603,126	603,126
OTHER COMPREHENSIVE NET PROFIT OR LOSS (158-166)	167	4,524,926	-292,572	2,412,506	2,412,506
OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD (157+167)	168	23,685,175	3,113,892	24,735,262	7,626,379
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 2 Attributable to minority interests	169 170
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VI.	OTHER COMPREHENSIVE PROFIT OR LOSS FOR THE PERIOD
	1 Attributable to equity holders	169
	2 Attributable to minority interests	170

CONTENTS

Taxpayer: AD Plastik Group

CASH FLOW FROM OPERATING ACTIVITIES	2	3	4
1 Profit before taxation	001	19,148,984	22,322,756
2 Depreciation	002	21,120,759	24,020,299
3 Increase of current liabilities	003		3,978,305
4 Decrease of current receivables	004
5 Decrease in stocks	005	7,865,589	1,994,931
6 Other increase of cash flow	006	4,050,981	30,264,854
I. Total increase of cash flow from operating activities (001 - 006)	007	52,186,313	82,581,145
1 Decrease of current liabilities	008	4,517,738
2 Increase of current receivables	009	64,477,331	35,214,919
3 Increase in stocks	010
4 Other decrease of cash flow	011	959,956	13,192,194
II. Total decrease of cash flow from operating activities (008 – 011)	012	69,955,025	48,407,113
A1 NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	013	0	34,174,032
A2 NET DECREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007)	014	17,768,712	0
CASH FLOWS FROM INVESTMENT ACTIVITIES
1 Cash inflows from sale of fixed intangible and tangible assets	015		3,531,596
2 Cash inflows from sale of ownership and debt instruments	016		128,500
3 Cash inflows from interest	017	899,448	136,606
4 Cash inflows from dividends	018	20,899,236	14,921,369
5 Other cash inflows from investment activities	019	4,530,940	615,000
III. Total cash inflows from investment activities (015-019)	020	26,329,624	19,333,072
	021	14,599,676	19,853,381
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	14,599,676	19,853,381
B1 NET INCREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (020-024) B2 NET DECREASE OF CASH FLOW FROM INVESTMENT ACTIVITIES (024-020)	025 026	11,729,948 0	0 520,309
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	115,160,036	66,533,807
3 Other inflows from financial activities	029	37,498,288
V. Total cash inflows from financial activities (027-029)	030	152,658,324	66,533,807
1 Cash expenditures for the payment of credit principal and debentures	031	144,270,970	79,587,190
2 Cash expenditures for the payment of dividends	032		16,671,288
3 Cash expenditures for financial lease	033		972,053
4 Cash expenditures for repurchase of own shares	034
5 Other cash expenditures from financial activities	035
VI. Total cash expenditures from financial activities (031-035)	036	144,270,970	97,230,531
C1 NET INCREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (030-036)	037	8,387,354	0
	038	0	30,696,724
C2 NET DECREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (036-030) Total cash flow increase (013-014+025-026+037-038)	039	2,348,590	2,956,999
Total cash flow decrease (014-013+026-025+038-037)	040
Cash and cash equivalents at the beginning of the period	041	1,800,522	3,413,687
Cash and cash equivalents increase	042	2,348,590	2,956,999
Cash and cash equivalents decrease	043

Statement of changes in equity

Reporting period: 01.01.2016. to 30.06.2016. Taxpayer: AD Plastik Group

Item 1		AOP ind. 2	Preceding year 3	Current period 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	27,592,011
4 Retained profit or loss carried over		004	12,724,371	32,550,662
5 Current year profit or loss		005	19,160,247	22,322,756
6 Revalorisation of fixed material assets		006
7 Revalorisation of intangible assets		007			MANAGEMENT REPORT
8 Revalorisation of financial assets available for sale		008
9 Other revalorisation		009	-17,980,595	-16,774,803
10 Total equity and reserves (AOP 001-009)		010	648,989,022	668,724,823	B
11 Exchange rate variations from net investments into foreign business operations		011	5,656,158	3,015,632
12 Current and deferred taxes (part)		012	-1,131,232	-603,126
13 Cash flow protection		013
14 Changes in bookkeeping policies		014			AD PLASTIK GROUP
15 Correction of significant mistakes from the previous period		015
16 Other changes to capital		016		21,340,676
17 Total equity increase or decrease (AOP 011 - 016)		017	4,524,926	23,753,182	C
17 a Ascribed to holders of the holders company capital		018
17 b Ascribed to minority interest		019			AD PLASTIK d.d.
					D
Your needs. Our drive.	MANAGEMENT INTERIM REPORT FOR THE FIRST SIX MONTHS OF 2016				27

D Management's statement of responsibility

C

AD PLASTIK d.d.

AD PLASTIK GROUP

A

CONTENTS

C

D

Solin, July 25, 2016

Management's statement of responsibility

The financial statements of AD Plastik Group and the Company AD Plastik d.d. 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 d.d. for the period from January 1 to June 30, 2016, 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. MANAGEMENT INTERIM REPORT FOR THE FIRST SIX MONTHS OF 2016 29MANAGEMENT REPORT

The management report for the period until June 30, 2016, 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

Marinko Došen

Management Board Member

Sanja Biočić

The Company is registered at the Court Register of the Commercial Court of Split under the Registered Company Number (MBS): 060007090 Company Identification Number (OIB): 48351740621 IBAN: HR04 2340 0091 1101 5371 1, Privredna banka Zagreb d.d., Zagreb

The capital stock in the amount of HRK 419,958,400 was paid in full. AD Plastik issued a total of 4,199,584 of ordinary shares, in nominal amount of HRK 100. President of the Management Board: Marinko Došen Management Board members: Katija Klepo, Sanja Biočić , Mladen Peroš President of the Supervisory Board: Dmitrij Leonidovič Drandin

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SOLIN, JULY 2016 WWW.ADPLASTIK.HR