Dalekovod d.d. — Audit Report / Information 2020

Mar 3, 2021

DALEKOVOD D.D.

REPORT ON THE IMPLEMENTATION OF FINANCIAL RESTRUCTURING 28th IMPLEMENTATION REPORT (Q4 2020)

1. Balance sheets, income, and cash flow statements

The report was compiled in accordance with the provision of Art. 79, paragraph 4 of the Financial Operations and Pre-Bankruptcy Settlement Act. It refers, in all its contents, to the period from 1 January 2014 to 31 December2020.

Pre-bankruptcy settlement (hereinafter "settlement") over the debtor Dalekovod d.d. Zagreb (hereinafter "the Company") was reached at the hearing before the Commercial Court in Zagreb on 29/01/2014 and it became final on 14/02/2014.

In accordance with the provisions of Article 79, paragraph 4 of the Law on Financial Operations and Pre-Bankruptcy Settlement, the report contains:

1. description of financial restructuring measures implemented and their impact on a debtor in terms of liquidity and solvency,

2. total amount of payment of creditors' claims, in the shares in which these claims were paid,

3. quarterly balance sheets, income statement, and cash flow statement,

4. statement by the debtor that he has not taken any action that would result in bringing the creditor into an unequal position.

2. Description of the financial restructuring measures implemented and their impact on the debtor in terms of liquidity and solvency and the total amount of payment of creditors' claims, in the shares in which these claims were paid

In the period from 14/02/2014 when the final decision on the pre-bankruptcy settlement came into force by 31/12/2020 the following financial restructuring measures have been implemented:

A) The share capital was reduced to cover the accumulated losses, and accordingly, the nominal value of the share was reduced from HRK 100 to HRK 10.

B) The conversion of part of the debt to creditors into the capital was carried out, 852,168 new shares were issued and thus the share capital of the Company was increased by HRK 8,521,680.

C) A recapitalization of HRK 150,000,000 was made by payment in cash to finance investments and the development of the company. The recapitalization was performed by the company Konsolidator d.o.o. at HRK 10 per share. 15,000,000 new shares were issued and the share capital was increased by HRK 150,000,000.

D) Recapitalization of HRK 59,998,720 was carried out by payment in cash for financing investments and development of the company. The recapitalization was carried out by the existing shareholders, with the exclusion of the pre-emptive right of shareholders holding the Company's shares issued for a cash investment based on the decision of the regular General Assembly of the Company dated 22/07/2013 under item 8 of the Agenda, at HRK 10 per share. 5,999,872 new shares were issued and the share capital was increased by HRK 59,998,720.

E) The process of selling shares in the company Dalekovod Professio d.o.o. has been initiated. for investment in renewable energy sources as one of the financial restructuring measures listed in the Settlement.

F) Following the terms of the Settlement, the Company's debt based on co-debt, joint and several guarantee or guarantee in its entirety and claims of other companies based on co-debt for the Company's obligations to third parties have been released.

G) Following the terms of the Settlement, the write-off of interest and fee liabilities was performed.

H) The fair value of long-term liabilities from the pre-bankruptcy settlement on 31/03/2014 was calculated. following International Accounting Standards and represents a one-time significant positive effect on the income statement, and the Company's balance sheet in the amount of HRK 223.8 million. The calculation of fair value will be performed quarterly and will be presented in future financial statements.

I) The payment of the first installment to suppliers was made by a one-time payment in cash. It included 20% of total debt to creditors of categories (j), (k), (l), (m), and (n), and according to Settlement it amounted to HRK 69.8 million.

J) On 31/03/2015 the first of 13 installments was paid to suppliers in a single payment in cash, which according to the Settlement amounts to a total of HRK 12.4 million.

K) On 30/06/2015 the second of 13 installments was paid to suppliers in a single payment in cash, which according to the Settlement amounts to a total of HRK 12.4 million.

L) On 30/09/2015 the third of 13 installments was paid to suppliers in a single payment in cash, which according to the Settlement amounts to a total of HRK 12.4 million.

M) On 30/12/2015 the fourth of 13 installments was paid to suppliers in a single payment in cash, which according to the Settlement amounts to a total of HRK 12.4 million.

N) On 31/03/2016 the fifth of 13 installments was paid to suppliers in a single payment in cash, which according to the Settlement amounts to a total of HRK 12.4 million.

O) On 30/06/2016 the sixth of 13 installments was paid to suppliers in a single payment in cash, which according to the Settlement amounts to a total of HRK 12.4 million.

P) On 30/09/2016 the seventh of 13 installments was paid to suppliers in a single payment in cash, which according to the Settlement amounts to a total of HRK 12.4 million.

Q) On 30/12/2016 the eighth of 13 installments was paid to suppliers by a one-time payment in cash, which according to the Settlement amounts to a total of HRK 12.4 million.

R) On 31/03/2017 the ninth of 13 installments was paid to suppliers in a single payment in cash, which according to the Settlement amounts to a total of HRK 12.4 million.

S) On 31/03/2017 the principal of senior debt to banks was paid in the total amount of HRK 4.8 million and interest on loans for the first quarter in the amount of HRK 2.2 million.

T) according to the Decision on Pre-Bankruptcy Settlement and Settlement of Claims of a category (h), claims based on commercial papers issued by the Debtor, and which part of the claims was settled by refinancing through the issue of bonds, Dalekovod d.d. is 14/02/2017 redeemed interest on security marked DLKV-O-302E in the nominal amount of EUR 0.12 per bond, ie according to the middle exchange rate of the CNB 7.462096 HRK / 1 EUR on 14/02/2017 which amounts to HRK 0.89545152 per bond, and interest on the security marked DLKV-O-302A in the nominal amount of HRK 0.12 per bond. Thus, Dalekovod d.d. reduced debt on issued bonds by HRK 3.0 million. The listing agent is Zagrebačka banka d.d. Zagreb.

U) On 01/03/2017 the payment of the contractual penalty was made due to the default of the Debtor of sale and transfer of business shares in the company Dalekovod Professio (following Art.212 of the Settlement) in total amount of HRK 3.7 million.

C) On 30/06/2017 the tenth of 13 installments was paid to suppliers in a single payment in cash, which according to the Settlement amounts to a total of HRK 12.4 million.

W) On 30/06/2017 2nd installment of principal of the senior debt to the banks was paid in the total amount of HRK 4.8 million.

X) All liabilities from the pre-bankruptcy settlement to financial institutions have been duly settled. Liabilities were paid based on interest on loans for the second quarter in the amount of HRK 2.5 million, and the basis of annuities on financial leasing of HRK 2.7 million. There are no overdue outstanding liabilities based on invoices issued from liabilities under PSN.

Y) On 29/09/2017 the eleventh installment of 13 installments was paid to suppliers in a single payment in cash, which according to the Settlement amounts to a total of HRK 12.4 million

Z) On 29/09/2017, 3rd installment of the principal of the senior debt to banks was paid in the total amount of HRK 4.8 million.

AA) All obligations from the pre-bankruptcy settlement to financial institutions have been duly settled. Liabilities were paid on basis of interest on loans for third quarter in the amount of HRK 2.5 million, and on basis of annuities on financial leasing in the amount of HRK 2.7 million. There are no overdue outstanding liabilities based on invoices issued from liabilities under PSN

BB) On December 29, 2017, the twelfth of 13 installments was paid to suppliers in a one-time payment in cash, which according to the Settlement amounts to a total of HRK 12.4 million.

CC) On 29/12/2017 fourth installment of the principal of the senior debt to banks was paid in the total amount of million HRK.

DD) All obligations from the pre-bankruptcy settlement to financial institutions have been duly settled. Liabilities were paid on basis of interest on loans for fourth quarter in the amount of HRK 2.5 million, and on basis of annuities on financial leasing in amount of HRK 2.7 million. There are no overdue outstanding liabilities based on invoices issued from liabilities under PSN.

EE) On 02/03/2018 payment of contractual penalty was made due to default of the Debtor of sale and transfer of business shares in company Dalekovod Professio (in accordance with Art. 212 of Settlement) in the total amount of HRK 3.7 million.

FF) On March 30, 2018, the thirteenth of 13 installments was paid to suppliers by a one-time payment into new ones, which according to the Settlement amounts to a total of HRK 12.4 million

GG) On 30/03/2018 the 5th installment of the principal of senior debt to banks was paid in the total amount of HRK 4.8 million

HH) All obligations from the pre-bankruptcy settlement to financial institutions have been duly settled. Liabilities were paid on the basis of interest on loans for the first quarter of 2018 in the amount of HRK 2.5 million, and on the basis of annuities on financial leasing in the amount of HRK 2.7 million. No outstanding liabilities based on issued invoices from liabilities under PSN

II) The 6th installment of the principal of senior debt to banks was paid in the total amount of HRK 4.8 million

JJ) All liabilities from pre-bankruptcy settlement to financial institutions have been duly settled. Liabilities were paid on basis of interest on loans for second quarter of 2018 in amount of HRK 2.37 million, and on basis of annuities on financial leasing in the amount of HRK 2.7 million. There are no overdue outstanding liabilities based on invoices issued from liabilities under PSN

KK) On 14 November 2018, all liabilities based on interest and principal of senior debt from the pre-bankruptcy settlement to financial institutions on loans for the third quarter of 2018 in the amount of HRK 7.2 million were settled, and on the basis of annuities on financial leasing in the amount of HRK 2.7 million.

LL) As of January 14, 2019, all liabilities based on interest and principal of senior debt from the pre-bankruptcy settlement to financial institutions on loans for the fourth quarter of 2018 in the amount of HRK 7.48 million were settled. All liabilities based on annuities on financial leasing in the amount of HRK 2.7 million for the reporting quarter have been settled.

MM) As of May 17, 2019, all liabilities based on interest and principal of senior debt from the pre-bankruptcy settlement to financial institutions on loans for the first quarter of 2019 in the amount of HRK 7.04 million were settled. Liabilities from annuities on financial leasing in the amount of HRK 1.8 million for the reporting quarter were settled.

NN) In the period from 15/01/2019 to 25/02/2019, a payment was made in the amount of HRK 59.47 million. The stated amount of funds was paid to the mezzanine creditors on the basis of the sale of Dalekovod Professio in accordance with pre-bankruptcy settlement

OO) On 14/02/2020, bonds DLKV-O-302A and DLKV-O-302A were redeemed in amount of principal and interest HRK 2.54 mil.

PP) On 10 July 2020, the settlement was concluded with the creditor from the Pre-Bankruptcy Settlement HETA Asset Resolution d.o.o. , on the arrangement of relations from three leasing contracts of which HETA is an excrucial creditor on assets that in nature represent a galvanizing plant in Dugo Selo. Settlement reduced Groups financial debt more than HRK 61 million. With the settlement, the debt on the basis of the 7.4.a claim under a lease agreement in amount greater than HRK 2 million was fully regulated.

RR) On 12 February 2021, DLKV-O-302A and DLKV-O-302A bonds were redeemed in total amount of principal and interest of HRK 2.55 million.

SS) As of 15 November 2020, Company and Group have due liabilities based on regular interest and principal of senior debt from prebankruptcy settlement in amount of HRK 41.19 mil.

3. Balance sheets, income statement and cash flow statement

Source: Business results of Dalekovod Group and Dalekovod d.d. for the period I -XII2020

Financial position report

Item	AOP co de	Last day of the precending business year	At th reporting date of the current period
ı	$\mathbf{2}$	$\overline{\mathbf{3}}$	4
ASSETS
A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID	L
B) FIXED ASSETS (ADP 003+010+020+031+036)	$\overline{2}$	312.227.970	328.593.122
I INTANGIBLE ASSETS (ADP 004 to 009)	3	6.056.676	4.831.285
II TANGIBLE ASSETS (ADP 011 to 019)	10	255.671.936	254.240.542
III FIXED FINANCIAL ASSETS (ADP 021 to 030)	20	13.734.197	9.473.799
IV RECEIVABLES (ADP 032 to 035)	31	36.765.161	60.047.496
V DEFERRED TAX ASSETS	36	$\overline{\phantom{a}}$	$\blacksquare$
C) CURRENT ASSETS (ADP 038+046+053+063)	37	631.075.012	574.039.344
I INVENTORIES (ADP 039 to 045)	38	175.971.937	73.589.767
II RECEIVABLES (ADP 047 to 052)	46	379.689.233	426.224.960
III CURRENT FINANCIAL ASSETS (ADP 054 to 062)	53	14.298.513	10.019.288
IV CASH AT BANK AND IN HAND	63	61.115.329	64.205.329
D ) PREPAID EXPENSES AND ACCRUED INCOME	64	3.329.599	14.389.006
E) TOTAL ASSETS (ADP 001+002+037+064)	65	946.632.581	917.021.471
OFF-BALANCE SHEET ITEMS	66	487.526.376	449.171.244
LIABILITIES
A) CAPITAL AND RESERVES (ADP 068 to 070+076+077+081+084+087)	67	82.514.228	54.301.644
I INITIAL (SUBSCRIBED) CAPITAL	68	247.193.050	247.193.050
II CAPITAL RESERVES	69	86.141.670	86.141.670
III RESERVES FROM PROFIT (ADP 071+072-073+074+075)	70	74.430.517	73.479.949
IV REVALUATION RESERVES	76	40.706.979	40.706.979
V FAIR VALUE RESERVES (ADP 078 to 080)	77	٠	٠
VI RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 082-083)	81	(369.208.977)	(365.957.988)
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 085-086)	84	3.250.989	(27.262.015)
VIII MINORITY (NON-CONTROLLING) INTEREST	87	$\sim$	٠
B) PROVISIONS (ADP 089 to 094)	88	35.797.578	33.382.010
C) LONG-TERM LIABILITIES (ADP 096 to 106)	95	308.449.120	251.274.516
D) SHORT-TERM LIABILITIES (ADP 108 to 121)	107	506.324.131	534.264.618
E) ACCRUALS AND DEFERRED INCOME	122	13.547.524	43.798.682
F) TOTAL - LIABILITIES (ADP $067+088+095+107+122$ )	123	946.632.581	917.021.471
G) OFF-BALANCE SHEET ITEMS	124	487.526.376	449.171.244

Profit and loss report

	AOP	Same period of the previous year		Current period
Item	code	Cumulative	Quarter	Cumulative	Quarter
	$\mathbf{2}$	$\overline{\mathbf{3}}$	4	5	$\ddot{\mathbf{6}}$
I OPERATING INCOME (ADP 126 to 130)	125	1.211.555.541	360.807.578	1.289.664.406	345.435.567
2 Income from sales (outside group)	127	1.182.645.076	350.392.949	1.254.346.704	324.491.483
5 Other operating income (outside the group)	130	28.910.465	10.414.629	35.317.701	20.944.084
II OPERATING EXPENSES (ADP 132+133+137+141+142+143+146+153)	131	1.218.522.424 366.254.454		1.239.997.550 337.435.670
1 Changes in inventories of work in progress and finished goods	132	(1.696.616)	4.990.363	878,108	(3.472.793)
2 Material costs (ADP 134 to 136)	133	746.238.133	229.377.667	762.986.927	222.390.362
a) Costs of raw materials and consumables	134	292.308.499	118.642.846	343.633.596	98.575.919
	135	96.901.292	(3.297.405)	55.294.487	12.021.097
b) Costs of goods sold c) Other external costs	136	357.028.342	114.032.226	364.058.844	111.793.347
	137			304.319.390	71.866.049
3 Staff costs (ADP 138 to 140)		289.978.517	68.525.894
a) Net salaries and wages	138	221.582.625	52.571.057	237.581.904	54.863.784
b) Tax and contributions from salary costs	139	42.333.322	9.831.476	39.209.690	10.401.249
c) Contributions on salaries	140	26.062.570	6.123.361	27.527.796	6.601.016
4 Depreciation	141	30.999.423	8.324.507	28.024.064	7.560.753
5 Other costs	142	32.326.181	14.936.217	31.541.070	13.418.739
6 Value adjustments (ADP 144+145)	143	7.728.978	7.728.978	1.584.675	1.421.535
b) current assets other than financial assets	145	7.728.978	7.728.978	1.584.675	1.421.535
7 Provisions (ADP 147 to 152)	146	10.999.211	10.015.476	3.303.202	3.303.202
c) Provisions for ongoing legal cases	149	10.999.211	10.015.476	3.303.202	3.303.202
8 Other operating expenses	153	101.948.597	22.355.351	107.360.113	20.947.824
III FINANCIAL INCOME (ADP 155 to 164)	154	78.431.125	22.862.249	5.207.676	(2.950.189)
7 Other interest income	161	1.010.313	370.400	678.983	87.196
8 Exchange rate differences and other financial income	162	10.549.105	2.966.945	4.149.224	(3.121.001)
10 Other financial income	164	66.871.707	19.524.904	379.469	83.615
IV FINANCIAL EXPENSES (ADP 166 to 172)	165	54.156.823	31.800.224	20.922.563	3.025.584
3 Interest expenses and similar expenses	168	15.606.102	6.180.565	13.195.177	6.893.293
4 Exchange rate differences and other expenses	169	15.421.197	5.139.698	6.571.953	(5.023.142)
5 Unrealised losses (expenses) from financial assets	170	20.479.961	20.479.961
7 Other financial expenses	172	2.649.563		1.155.433	1.155.433
IX TOTAL INCOME (ADP $125 + 154 + 173 + 174$ )	177	1.289.986.666	383.669.827	1.294.872.082 342.485.378
TOTAL EXPENDITURE (ADP 131+165+175 + 176) X	178	1.272.679.248 398.054.678		1.260.920.113 340.461.254
XI PRE-TAX PROFIT OR LOSS (ADP 177-178)	179	17.307.419	(14.384.850)	33.951.969	2.024.124
1 Pre-tax profit (ADP 177-178)	180	17.307.419	$\sim$	33.951.969	2.024.124
2 Pre-tax loss (ADP 178-177)	181		(14.384.850)
XII INCOME TAX	182	8.635.066	8.406.432	8.085.092	7.747.277
XIII PROFIT OR LOSS FOR THE PERIOD (ADP 179-182)	183	8.672.353	(22.791.283)	25.866.877	(5.723.153)
1 Profit for the period (ADP 179-182)	184	8.672.353		25.866.877
2 Loss for the period (ADP 182-179)	185		(22.791.283)		(5.723.153)
XIV PRE-TAX PROFIT OR LOSS OF DISCONTINUED OPERATIONS (ADP 187-18)	186	(5.421.364)	3.661.044	(53.128.892)	(1.826.934)
2 Pre-tax loss on discontinued operations	188	5.421.364	(3.661.044)	53.128.892	1.826.934
TOTAL OPERATIONS (to be filled in only by undertakings subject to IFRS with discontinuer		$\overline{\phantom{a}}$		$\overline{\phantom{a}}$
XVIPRE-TAX PROFIT OR LOSS (ADP 179+186)	192	11.886.055	(10.723.805)	(19.176.923)	197.189
1 Pre-tax profit (ADP 192)	193	11.886.055	(10.723.806)	$\overline{\phantom{a}}$	$\sim$
2 Pre-tax loss (ADP 192)	194	$\overline{\phantom{a}}$		19.176.923	(197.189)
XIX PROFIT OR LOSS FOR THE PERIOD (ADP 200+201)	199	3.250.989	(19.130.239)	(27.262.015)	(7.550.088)
1 Attributable to owners of the parent	200	3.250.989	(19.130.239)	(27.262.015)	(7.550.088)
STATEMENT OF OTHER COMPRHENSIVE INCOME (to be filled in by undertakings subject to IFRS)
I PROFIT OR LOSS FOR THE PERIOD	202	3.250.989	(19.130.239)	(27.262.015)	(7.550.088)
II OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX (ADP 204 to 211)	203	(967.467)	609.476	(950.569)	(1.765.376)
1 Exchange rate differences from translation of foreign operations	204	(1.661.198)	(84.255)	(950.569)	(1.765.376)
IV NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 203-212)	213	(967.467)	609.476	(950.569)	(1.765.376)
V COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 202+213)	214	2.283.522	(18.520.763)	(28.212.584)	(9.315.464)
APPENDIX to the Statement on comprehensive income (to be filled in by undertakings the		$\overline{\phantom{a}}$			$\sim$
VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 216+217)	215	2.283.522	(18.520.763)	(28.212.584)	(9.315.464)
		0.009500

Cash flow report

Item	AOP code	Same period of the previous year	Current period
ı.	2	3	4
Cash flow from operating activities
1 Pre-tax profit		11.956.712	(19.176.923)
2 Adjustments (ADP 003 to 010):	$\overline{2}$	14.480.534	46.149.438
a) Depreciation	3	30.999.423	28.024.064
b) Gains and losses from sale and value adjustment of fixed tangible and intangible assets	4	(1.932.000)	(362.274)
c) Gains and losses from sale and unrealised gains and losses and value adjustment of financial assets	5	(39.840.010)	2.106.277
d) Interest and dividend income	6	(1.010.313)	(678.983)
e) Interest expenses	7	15.606.102	13.195.177
f) Provisions	8	5.280.331	3.303.202
g) Exchange rate differences (unrealised)	9	4.884.000	561.976
h) Other adjustments for non-cash transactions and unrealised gains and losses	10	493.000
I Cash flow increase or decrease before changes in working capital (ADP 001+002)	11	26.437.246	26.972.515
3 Changes in the working capital (ADP 013 to 016)	12	(24.916.268)	(337.063)
a) Increase or decrease in short-term liabilities	13	(23.301.320)	31.057.584
b) Increase or decrease in short-term receivables	14	(17.221.000)	(46.535.727)
c) Increase or decrease in inventories	15	9.421.000	(4.002.729)
d) Other increase or decrease in working capital	16	6.185.052	19.143.809
Il Cash from operations (ADP $011+012$ )	17	1.520.978	26.635.452
4 Interest paid	18	(9.627.000)	(2.218.637)
5 Income tax paid	19	(1.144.000)	(18.651.634)
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019)	20	(9.250.022)	5.765.181
Cash flow from investment activities
1 Cash receipts from sales of fixed tangible and intangible assets	21	2.386.010	47.647
2 Cash receipts from sales of financial instruments	22	111.938.005
3 Interest received	23	754.005	190.887
4 Dividends received	24	÷	٠
5 Cash receipts from repayment of loans and deposits	25	367.020	13.987.528
6 Other cash receipts from investment activities	26		8.581.127
III Total cash receipts from investment activities (ADP 021 to 026)	27	115.445.040	22.807.187
I Cash payments for the purchase of fixed tangible and intangible assets	28	(18.118.000)	(18.914.798)
3 Cash payments for loans and deposits for the period	30		(2.411.260)
5 Other cash payments from investment activities	32	(1.457.000)	(5.630.579)
IV Total cash payments from investment activities (ADP 028 to 032)	33	(19.575.000)	(26.956.637)
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033)	34	95.870.040	(4.149.450)
Cash flow from financing activities
3 Cash receipts from credit principals, loans and other borrowings	37	21.375.020	10.754.935
4 Other cash receipts from financing activities	38		63.280
V Total cash receipts from financing activities (ADP 035 to 038)	39	21.375.020	10.818.215
I Cash payments for the repayment of credit principals, loans and other borrowings and debt financial	40	(101.917.000)	(3.886.567)
2 Cash payments for dividends	41
3 Cash payments for finance lease	42	(9.941.000)	(5.457.380)
5 Other cash payments from financing activities	44	(1.201.000)
VI Total cash payments from financing activities (ADP 040 to 044)	45	$(113.059.000)$ $(9.343.947)$
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045)	46	(91.683.980)	1.474.268
D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP 020+034+046+047)	48	(5.063.962)	3.090.000
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	49	66.179.291	61.115.329
F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD(ADP 048+049)	50	61.115.329	64.205.329

Report on changes in capital for the current period

			Minority Attributable to owners of the parent
					Reserves	Treasury						Total	(non-
Item		Initial			for	shares and						Retained profit Profit/loss for attributable to controlling
	AOP	(subscribed	Capital	Legal	treasury	holdings	Statutory	Other	Revaluation	/loss brought the business		owners of the
		capital	reserves	reserves	shares	(deductibl	reserves	reserves	reserves	forward	year	parent		interest Total capital and reserves
											15.	$+8$ do 15)		$18(16+17)$
Current period
I Balance on the first day of the current business year	27						11.652.410 8.465.950 8.465.950 32.188.407	30.589.700	40.706.979	(369.208.977)	3.250.989	82.514.228		82.514.228
2 Changes in accounting policies	28
3 Correction of errors	29
4 Balance on the first day of the current business year (restated) (ADP 2	30						32.188.407		40.706.979	(369.208.977)	3.250.989	82.514.228		82.514.228
5 Profit/loss of the period	31										(27.262.015)	(27.262.015)		(27.262.015)
6 Exchange rate differences from translation of foreign operations								(950.569)				(950.569)		(950.569)
20 Other distribution to owners	46									3.250.989	(3.250.989)
23 Balance on the last day of the current business year reporting period (	49											247.193.050 86.141.670 11.652.410 8.465.950 8.465.950 32.188.407 29.639.131 40.706.979 365.957.988) (27.262.015) 54.301.644		54.301.644
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the IFRS)
I OTHER COMPREHENSIVE INCOME FOR THE CURRENT PERIOD, NET OF	50							(950.569)				(950.569)		(950.569)
II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP 3	51							(950.569)			(27.262.015)	(28.212.584)		(28.212.584)
III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED	52									3.250.989	(3.250.989)

Report on changes in capital for the previous period

								Attributable to owners of the parent
Item	AOP code	Initial subscribed) capital	Capital reserves	Legal reserves	Reserves fo treasury shares	Treasury shares and holdin qs leducti ble item)	Statutory reserves	Other reserves	Revaluation reserves	Retained profit / loss brought forward	Profit/loss for the business year	Total attributable to owners of the parent	Minority (non- controllin g) interest	Total capital and reserves
									10	14	15 1	16 (3 do 6 - 7 $+ 8$ do 15)	17 2	$18(16+17)$
Previous period
1 Balance on the first day of the previous business year										247.193.050 88.235.980 11.652.410 8.465.950 8.465.950 32.188.407 32.251.148 40.706.979 (249.638.779) (119.570.198)		83.018.997	(693.731)	82.325.266
2 Changes in accounting policies
3 Correction of errors
4 Balance on the first day of the previous business year (restated) (ADP (		247.193.050 88.235.980 11.652.410 8.465.950 8.465.950 32.188.407 32.251.148								40.706.979 (249.638.779) (119.570.198)		83.018.997	(693.731)	82.325.266
5 Profit/loss of the period											3.250.989	3.250.989		3.250.989
6 Exchange rate differences from translation of foreign operations								(1.661.448)				(1.661.448)		(1.661.448)
13 Other changes in equity unrelated to owners	13												693.731	693.731
20 Other distribution to owners	20		(2.094.310)							(119.570.198)	119.570.198	(2.094.310)		(2.094.310)
23 Balance on the last day of the previous business year reporting period	23	247.193.050 86.141.670 11.652.410 8.465.950 8.465.950 32.188.407 30.589.700							40.706.979	(369.208.977)	3.250.989	82.514.228	$\sim$	82.514.228
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the IFRS)
I OTHER COMPREHENSIVE INCOME OF THE PREVIOUS PERIOD. NET OF	24							(1.661.448)	$\sim$		Service	(1.661.448)	693.731	(967.717)
II COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD (ADP	25							(1.661.448)			3.250.989	1.589.541	693.731	2.283.272
III TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD	26		(2.094.310)							(119.570.198) 119.570.198		(2.094.310)		(2.094.310)

Company financial report for I - XII 2020 period

Financial position report

Item	AOP code	precending business year	Last day of the At th reporting date of the current period
ı	$\overline{2}$	$\overline{\mathbf{3}}$	4
ASSETS
A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID
B) FIXED ASSETS (ADP 003+010+020+031+036)	$\overline{2}$	339.327.188	352.271.285
I INTANGIBLE ASSETS (ADP 004 to 009)	3	4.173.237	2.922.549
II TANGIBLE ASSETS (ADP 011 to 019)	10	231.635.222	231.715.390
III FIXED FINANCIAL ASSETS (ADP 021 to 030)	20	66.888.987	57.585.851
IV RECEIVABLES (ADP 032 to 035)	31	36.629.742	60.047.496
V DEFERRED TAX ASSETS	36	$\bf{0}$	$\overline{\phantom{a}}$
C) CURRENT ASSETS (ADP $038+046+053+063$ )	37	476.794.181	457.872.321
I INVENTORIES (ADP 039 to 045)	38	109.015.323	8.028.812
II RECEIVABLES (ADP 047 to 052)	46	301.115.832	388.382.721
III CURRENT FINANCIAL ASSETS (ADP 054 to 062)	53	17.109.884	10.662.167
IV CASH AT BANK AND IN HAND	63	49.553.142	50.798.621
D ) PREPAID EXPENSES AND ACCRUED INCOME	64	2.400.906	11.634.589
E) TOTAL ASSETS (ADP $001+002+037+064$ )	65	818.522.275	821.778.196
OFF-BALANCE SHEET ITEMS	66	356.786.379	436.201.104
LIABILITIES
A) CAPITAL AND RESERVES (ADP 068 to 070+076+077+081+084+087)	67	29.619.554	19.138.740
I INITIAL (SUBSCRIBED) CAPITAL	68	247.193.050	247.193.050
II CAPITAL RESERVES	69	86.141.670	86.141.670
III RESERVES FROM PROFIT (ADP 071+072-073+074+075)	70	43.675.007	43.675.007
IV REVALUATION RESERVES	76	40.706.979	40.706.979
V FAIR VALUE RESERVES (ADP 078 to 080)	77	0
VI RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 082-083)	81	$-393.897.901$	(388.097.152)
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 085-086)	84	5.800.749	(10.480.813)
VIII MINORITY (NON-CONTROLLING) INTEREST	87	$\bf{0}$
B) PROVISIONS (ADP 089 to 094)	88	31.468.170	30.003.047
C) LONG-TERM LIABILITIES (ADP 096 to 106)	95	316.705.464	259.474.220
D) SHORT-TERM LIABILITIES (ADP 108 to 121)	107	426.795.602	470.644.780
E) ACCRUALS AND DEFERRED INCOME	122	13.933.485	42.517.410
F) TOTAL - LIABILITIES (ADP $067+088+095+107+122$ )	123	818.522.275	821.778.196
G) OFF-BALANCE SHEET ITEMS	124	356.786.379	436.201.104

Profit and loss report

	AOP	Same period of the previous		Current period
Item	code	year
		Cumulative	Quarter	Cumulative	Quarter
1	2	3	4	5	6
I OPERATING INCOME (ADP 126 to 130)	125	979.649.629		313.681.726 1.078.383.839 280.030.940
1 Income from sales with undertakings within the group	126	23.481.388	(920.606)	5.983.901	(2.451.357)
2 Income from sales (outside group)	127	922.921.950	303.407.197	1.040.777.631	266.642.218
4 Other operating income with undertakings within the group	129	18.580.806	7.076.974	1.059.088	(11.816.149)
5 Other operating income (outside the group) II OPERATING EXPENSES (ADP 132+133+137+141+142+143+146+153)	130 131	14.665.485 954.785.602	4.118.161	30.563.218 302.016.793 1.023.878.035 265.990.667	27.656.227
2 Material costs (ADP 134 to 136)	133	602.455.462	207.776.969	650.821.502	177.304.648
a) Costs of raw materials and consumables	134	257.228.112	110.915.970	319.308.908	85.582.218
b) Costs of goods sold	135	48.939.451	2.166.912	16.430.551	7.725.993
c) Other external costs	136	296.287.899	94.694.087	315.082.043	83.996.437
3 Staff costs (ADP 138 to 140)	137	212.247.717	47.277.278	241.599.698	56.994.702
a) Net salaries and wages	138	172.679.158	39.212.712	198.373.664	45.595.633
b) Tax and contributions from salary costs	139	24.746.947	4.827.073	23.826.155	5.920.391
c) Contributions on salaries	140	14.821.612	3.237.493	19.399.879	5.478.678
4 Depreciation	141	23.197.592	6.529.044	22.942.088	6.106.503
5 Other costs	142	15.917.322	6.164.582	18.746.583	6.360.475
6 Value adjustments (ADP 144+145)	143	619.067	619.067	-	(179.437)
b) current assets other than financial assets	145	619.067	619.067	-	(179.437)
7 Provisions (ADP 147 to 152)	146	10.635.467	9.023.181	2.976.707	2.976.707
c) Provisions for ongoing legal cases	149	6.538.889	4.926.603	2.976.707	2.976.707
8 Other operating expenses	153	89.712.975	24.626.672	86.791.456	16.427.068
III FINANCIAL INCOME (ADP 155 to 164)	154	53.234.272	8.466.050	10.196.487	(1.756.299)
1 Income from investments in holdings (shares) of undertakings within the group	155	2.315.249	-	5.292.225	857.495
4 Other interest income from operations with undertakings within the group	158	958.437	176.140	202.628	(53.020)
7 Other interest income	161	1.183.959	267.573	818.384	127.230
8 Exchange rate differences and other financial income	162	11.149.006	8.022.774	3.883.251	(2.688.003)
9 Unrealised gains (income) from financial assets	163	-	(438)	-	-
10 Other financial income IV FINANCIAL EXPENSES (ADP 166 to 172)	164 165	37.627.621 62.167.646	1 46.497.517	- 19.903.055	- 3.395.375
1 Interest expenses and similar expenses with undertakings within the group	166	420.357	135.520	417.745	238.683
2 Exchange rate differences and other expenses from operations with undertakings within the group	167	191.019	46.390	-	(141.251)
3 Interest expenses and similar expenses	168	10.901.336	3.306.841	12.898.335	8.426.434
4 Exchange rate differences and other expenses	169	21.765.426	14.119.258	5.431.541	(6.283.924)
IX TOTAL INCOME (ADP 125+154+173 + 174)	177			1.032.883.901 322.147.776 1.088.580.326 278.274.641
X TOTAL EXPENDITURE (ADP 131+165+175 + 176)	178			1.016.953.248 348.514.310 1.043.781.089 269.386.042
XI PRE-TAX PROFIT OR LOSS (ADP 177-178)	179	15.930.653	(26.366.534)	44.799.237	8.888.600
1 Pre-tax profit (ADP 177-178)	180	15.930.653	-	44.799.237	8.888.600
XII INCOME TAX	182	7.466.551	7.466.551	6.755.235	6.755.235
XIII PROFIT OR LOSS FOR THE PERIOD (ADP 179-182)	183	8.464.102	(33.833.085)	38.044.002	2.133.364
1 Profit for the period (ADP 179-182)	184	8.464.102	-	38.044.002	2.133.364
XIV PRE-TAX PROFIT OR LOSS OF DISCONTINUED OPERATIONS (ADP 187-188)	186	(2.663.353)	3.855.342	(48.524.815)	(805.631)
2 Pre-tax loss on discontinued operations	188	2.663.353	-	48.524.815	805.631
2 Discontinued operations loss for the period (ADP 189-186)	191	(2.663.353)	3.855.342	48.524.815	805.631
XVI PRE-TAX PROFIT OR LOSS (ADP 179+186)	192	13.267.300	(22.511.192)	(3.725.578)	8.082.969
1 Pre-tax profit (ADP 192)	193	13.267.300	-	-	-
2 Pre-tax loss (ADP 192)	194	-	22.511.192	3.725.578	8.082.969
XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 192-195)	196	5.800.749	(29.977.743)	(10.480.813)	1.327.733
1 Profit for the period (ADP 192-195)	197	5.800.749	(29.977.743)	-	1.327.733
2 Loss for the period (ADP 195-192)	198	-	-	10.480.813	-
XIX PROFIT OR LOSS FOR THE PERIOD (ADP 200+201) 1 Attributable to owners of the parent	199 200	- -	- -	- -	- -
STATEMENT OF OTHER COMPRHENSIVE INCOME (to be filled in by undertakings subject to IFRS)
I PROFIT OR LOSS FOR THE PERIOD	202	5.800.749	(29.977.743)	(10.480.813)	1.327.733
II OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX (ADP 204 to 211)	203	-	-	-	-
III TAX ON OTHER COMPREHENSIVE INCOME FOR THE PERIOD	212	-	-	-	-
IV NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 203-212)	213	-	-	-	-
V COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 202+213)	214	5.800.749	(29.977.743)	(10.480.813)	1.327.733
APPENDIX to the Statement on comprehensive income (to be filled in by undertakings that draw up consolidated statements)		-	-	-	-
VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 216+217)	215	-	-	-	-

Cash flow report

Item	AOP code	Same period of the previous year	Current period
	$\overline{2}$	$\overline{\mathbf{3}}$	4
Cash flow from operating activities
1 Pre-tax profit	ı		13.267.300 (10.480.813)
2 Adjustments (ADP 003 to 010):	$\overline{2}$	44.892.220	44.535.227
a) Depreciation	3	23.197.592	22.942.088
b) Gains and losses from sale and value adjustment of fixed tangible and		(1.015.631)	4.633.850
intangible assets	4
c) Gains and losses from sale and unrealised gains and losses and value		(4.594.033)	450.286
adjustment of financial assets	5
d) Interest and dividend income	6	(4.457.644)	(5.574.212)
e) Interest expenses	7	16.196.211	14.902.308
f) Provisions	8	5.825.510	(1.465.123)
g) Exchange rate differences (unrealised)	9	4.699.548	(1.931.795)
h) Other adjustments for non-cash transactions and unrealised gains and losses	10	5.040.667	10.577.824
I Cash flow increase or decrease before changes in working capita	11	58.159.520	34,054,414
3 Changes in the working capital (ADP 013 to 016)	12		$(36.002.985)$ $(17.256.457)$
a) Increase or decrease in short-term liabilities	13	(26.373.325)	49.145.105
b) Increase or decrease in short-term receivables	14	(14.892.998)	(87.175.516)
c) Increase or decrease in inventories	15	5.263.338	(1.546.028)
d) Other increase or decrease in working capital	16		22.319.982
II Cash from operations (ADP 011 $+$ 012)	17	22.156.535	16.797.957
4 Interest paid	18	(9.588.287)	(1.905.507)
5 Income tax paid	19		$(320.557)$ $(18.656.316)$
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 01	20		12.247.691 (3.763.866)
Cash flow from investment activities
I Cash receipts from sales of fixed tangible and intangible assets	21	1.424.524	1.544
2 Cash receipts from sales of financial instruments	22	109.702.713
3 Interest received	23	397.561	190.614
4 Dividends received	24 25	2.315.249	5.292.225 13.650.020
5 Cash receipts from repayment of loans and deposits		12.095.958
6 Other cash receipts from investment activities III Total cash receipts from investment activities (ADP 021 to 026	26 27	125.936.005	8.581.127 27.715.529
I Cash payments for the purchase of fixed tangible and intangible assets	28 30	(36.166.688) (7.827.985)	(17.371.963)
3 Cash payments for loans and deposits for the period 4 Acquisition of a subsidiary, net of cash acquired	31	(20.000)	(1.300.000)
5 Other cash payments from investment activities	32	(5.512.663)	(5.630.579)
IV Total cash payments from investment activities (ADP 028 to 03	33		$(49.527.336)$ $(24.302.542)$
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +03	34	76.408.669	3.412.988
Cash flow from financing activities
3 Cash receipts from credit principals, loans and other borrowings	37	24.802.780	10.752.345
V Total cash receipts from financing activities (ADP 035 to 038)	39	24.802.780	10.752.345
I Cash payments for the repayment of credit principals, loans and other borrowit	40	(103.728.147)	(3.886.567)
3 Cash payments for finance lease	42	(9.670.463)	(5.269.420)
5 Other cash payments from financing activities	44	(1.583.915)
VI Total cash payments from financing activities (ADP 040 to 044)	45	(114.982.525)	(9.155.987)
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045	46	(90.179.745)	1.596.359
D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP 020+034+	48	(1.523.385)	1.245.480
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PER	49	51.076.527	49.553.142
F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD(AD	50	49.553.142	50.798.622

Report on changes in capital for the current period

							Attributable to owners of the parent
Item	AOP code	Initial (subscribed) capital	Capital reserves	Legal reserves	Reserves for treasury shares	shares and holdings (deductible item)	Statutory reserves	reserves	Other Revaluation reserves	Retained profit / loss brought forward	Profit/loss for owners of the the business year	Total attributable to parent	Total capital and reserves
									10	$14 -$	15	$+8$ do 15)	$18(16+17)$
Current period
I Balance on the first day of the current business year	27	247.193.050 86.141.670 11.486.600 8.465.950 8.465.950 32.188.407								40.706.979 (393.897.901)	5.800.749	29.619.554	29.619.554
4 Balance on the first day of the current business year (restated) (ADP 2	30	247.193.050 86.141.670 11.486.600 8.465.950 8.465.950 32.188.407								40.706.979 (393.897.901)	5.800.749	29.619.554	29.619.554
5 Profit/loss of the period	31										(10.480.813)	(10.480.813)	(10.480.813)
21 Transfer to reserves according to the annual schedule							Contact:			5.800.749	(5.800.749)
23 Balance on the last day of the current business year reporting period (	49	247.193.050 86.141.670 11.486.600 8.465.950 8.465.950 32.188.407								40.706.979 (388.097.152) (10.480.813) 19.138.741			19.138.741
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the IFRS)
II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP 3 51												$(10.480.813)$ $(10.480.813)$	(10.480.813)
III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED	52									5.800.749	(5.800.749)

Report on changes in capital for the previous period

							Attributable to owners of the parent
Hem	A OP code	Initial (subscribed) capital	Capital reserves	Legal reserves	Reserves for treasury shares	Treasury shares and holdings d ed uctible it em)	Statutory reserves	Other reserves	Revaluation reserves	Retained profit / loss brought forward	Profit/loss for the business year	Total attributable to owners of the parent	Total capital and reserves
												$16(3 do 6 - 7)$
									10	$14-1$	15	$+ 8$ do 15)	$18(16+17)$
Previous period
1 Balance on the first day of the previous business year		247.193.050 88.235.980 11.486.600 8.465.950 8.465.950 32.188.407									40.706.979 (160.874.981) (233.022.920) 25.913.115		25.913.115
4 Balance on the first day of the previous business year (restated) (ADP (		247.193.050 88.235.980 11.486.600 8.465.950 8.465.950 32.188.407									40.706.979 (160.874.981) (233.022.920)	25.913.115	25.913.115
5 Profit/loss of the period											5.800.749	5.800.749	5.800.749
20 Other distribution to owners			(2.094.310)									(2.094.310)	(2.094.310)
21 Transfer to reserves according to the annual schedule										(233.022.920)	233.022.920
23 Balance on the last day of the previous business year reporting period	23	247.193.050 86.141.670 11.486.600 8.465.950 8.465.950 32.188.407						Contract		40.706.979 (393.897.901)	5.800.749	29.619.554	29.619.554
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the IFRS)
II COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD (ADP	25										5.800.749	5.800.749	5.800.749
III TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD	26	$\sim$	(2.094.310)	$\sim$	$\sim$	$\sim$		$\sim$		(233.022.920)	233.022.920	(2.094.310)	(2.094.310)

1. Statement of the debtor that he did not take any action that would result in putting creditors in an unequal position

S T A T E M E N T

by which we confirm that we have not taken any action that would result in bringing creditors into an unequal position.

Đuro Tatalović, Management Board member