Dalekovod d.d. — Interim / Quarterly Report 2016

May 23, 2016

TABLE OF CONTENTS

• $\mathbb{R}^+$ MANAGEMENT BOARD'S REPORT
• II. DECLARATION
• $III.$ BALANCE SHEET
• $W_{\tau}$ STATEMENT OF COMPREHENSIVE INCOME
• $V_{\rm{H}}$ CASH FLOW STATEMENT
• VI. STATEMENT OF CHANGES IN EQUITY
• VII. NOTES TO FINANCIAL STATEMENTS

MANAGEMENT BOARD'S REPORT

KEY INDICATORS

L

The business results recorded in Q1 2016 show further strong recovery in Company's and Group's business after completing the pre-bankruptcy settlement.

The financial stability of the Group and the Company relies on four key segments - Profitable Growth, Cost-Effectiveness, Cash Flow, and Risk Management.

According to the final unaudited information for Q1 2016, Dalekovod Group's (the "Group") EBITDA was HRK 61.7 million. In the same period last year, the Group recorded EBITDA of HRK 33.7 million. Such sharp increase in EBITDA was primarily due to higher levels of other revenue compared to Q1 2015 resulting from the recognition of income obtained by selling rights to the Ministry of Finance in the amount of HRK 50 million based on a contract entered into with the Ministry of Finance in 2013 and positive effects of changes in the value of inventory. In Q1 2016, the Group obtained net income of HRK 43.4 million compared to HRK 19.1 million in the same period in 2015, which is an increase by 78.6 percent.

During the same period, Dalekovod d.d. (the "Company") obtained unaudited (EBITDA) of HRK 67.0 million, compared to HRK 30.3 million in Q1 2015. Net income obtained in Q1 2016 was HRK 49.2 million compared to HRK 23.7 million in the same period in 2015, which is an increase by 92.9 percent.

In addition to the one-time item relating to the income obtained by selling rights to the Ministry of Finance, the projects contracted on foreign markets (Norway, Ukraine, Kosovo, Finland) had the greatest impact on Group's and Company's performance.

As regards our future important activities, the appellate procedure involving a Croatian joint-venture (Dalekovod, DIV and Zagreba montaža) was completed in Q1 2016 with a positive outcome as regards

the award of contract for works on the Dugo Selo-Križevci railway section and such works are expected to start in September, while the contract was signed in late April of 2016.

On the Group level, expenses increased by HRK 12.0 million, while EBITDA margin was 34.1 percent, compared to 16.8 percent in the same period last year. On the Company level, operating expenses increased by HRK 25.1 million compared to the same period last year, while EBITDA margin was 53.8 percent, compared to 23.5 percent in the same period last year.

For the Management Board: Alen Premužak Chairman of the Management Board Dalekovod d.d.

Povezujemo svjetove, gradimo budućnost.

$\mathbf{II}$ . DECLARATION

Pursuant to Article 410, paragraph 1, and Article 407, paragraph 2, subparagraph 3 and paragraph 3 of the Capital Market Act, the persons responsible for preparing the financial statements: Alen Premužak, Chairman of the Management Board, Branimir Alujević, Management Board Member, Helena Jurčić Šestan, Management Board Member, Marko Jurković, Management Board Member, and Mirko Leko, Management Board Member, hereby make this

DECLARATION

To the best of our knowledge, the financial statements for the reporting period, prepared in compliance with the appropriate financial reporting standards, provide a full and true view of the assets, liabilities and income of DALEKOVOD and the companies included in consolidation, with a brief comment on the causes of the information provided. The financial statements have not been audited.

For the Management Board AlenPremužak

Chairman of the Management Board

Dalekovod d.d.

EKON

DALEKOVOD jsc DALEKOVOD GROUP 1 2 3 4 5 6 ASSETS A) SUBSCRIBED CAPITAL UNPAID 001 0 0 0 B) NON CURRENT ASSETS (003+010+020+029+033) 002 1.014.003.782 1.019.848.201 1.139.406.819 1.126.995.192 I. INTANGIBLE ASSETS (004 to 009) 003 14.869.072 13.512.642 17.711.383 16.312.801 1. Research & Dev elopment expenditure 004 0 0 0 2. Patents, licences, roy alties, trade marks, sof tware&similar rights 005 14.139.000 12.782.570 15.640.602 14.166.121 3. Goodwill 006 0 0 1.213.000 1.213.000 4. Prepay ments f or intangible assets 007 0 0 0 5. Intangible assets under construction 008 730.072 730.072 857.781 933.680 6. Other intangible assets 009 0 0 0 II. TANGIBLE ASSETS (011 to 019) 010 487.578.808 483.035.867 928.166.467 919.987.427 1. Land 011 166.071.529 166.071.529 246.495.442 2. Property 012 55.173.659 54.540.126 206.978.652 3. Plants and equipment 013 49.865.075 48.465.836 88.906.744 4. Tools, plants&v ehicles 014 2.286.758 1.910.182 11.640.831 5. Biological asset 015 0 0 0 6. Prepay ments f or tangible assets 016 0 0 0 7. Assets under construction 017 0 0 10.712.208 10.552.971 8. Other tangible assets 018 0 0 0 9. Inv estments property 019 214.181.787 212.048.194 363.432.590 361.260.674 III. NON-CURRENT FINANCIAL ASSETS (021 to 028) 020 482.783.323 492.687.205 161.524.337 156.872.293 1. Share in related parties 021 285.996.508 285.996.508 0 2. Loans to related parties 022 13.729.680 24.005.510 0 3. Participating interests (stakes) 023 20.241.100 20.241.100 14.667.309 14.605.372 4. Loans to participating interest 024 0 0 0 0 5. Inv estments in securities 025 4.254.377 4.251.169 4.537.472 4.534.263 6. Loans & deposits 026 8.331.640 8.251.905 15.178.127 10.835.818 7. Other non-current f inancial assets 027 150.230.018 149.941.013 127.141.429 126.896.840 8. Inv estment accounted by equity method 028 0 0 0 IV. TRADE RECEIVABLES (030 to 032) 029 28.772.579 30.612.487 32.004.632 1. Receiv ables f rom related parties 030 0 0 720.774 2. Receiv ables f rom credit sales 031 0 0 0 3. Other receiv ables 032 28.772.579 30.612.487 31.283.857 V. DEFERRED TAX ASSETS 033 0 0 0 C) CURENT ASSETS (035+043+050+058) 034 695.998.212 552.317.751 950.046.366 I. INVENTORIES (036 to 042) 035 20.488.561 17.122.634 182.776.062 198.199.558 1. Raw materials & consumables 036 18.474.196 13.571.193 68.599.673 69.179.211 2. Work in progress 037 0 0 13.132.497 11.377.249 3. Products 038 266.435 265.903 25.926.563 41.766.458 4. Merchandise 039 1.747.930 3.285.538 9.016.213 9.825.855 5. Prepay ments f or inv entories 040 0 0 1.058.270 1.007.939 6. Other av ailable-f or-sale assets 041 0 0 65.042.846 65.042.846 7. Biological asset 042 0 0 0 0 II. RECEIVABLES (044 to 049) 043 506.497.579 405.400.563 582.682.800 487.870.614 1. Receiv ables f rom related parties 044 34.476.796 21.981.583 0 2. Trade receiv ables 045 300.959.133 188.769.186 397.230.328 3. Receiv ables f rom participating parties 046 715.227 639.019 798.643 4. Amounts receiv able f rom employ ees 047 255.351 228.585 322.613 5. Receiv ables f rom gov ernment agencies 048 20.992.331 11.619.824 29.432.856 6. Other receiv ables 049 149.098.741 182.162.366 154.898.360 I I I C U R R E N T F I N AN C I AL AS S E TS ( 0 5 1 t o 0 5 7 ) 050 87.163.048 75.360.456 82.510.264 78.437.007 1. Share in related parties 051 0 0 0 2. Loans to related parties 052 31.585.316 21.116.382 0 3. Participating interests (stakes) 053 0 0 0 4. Loans to participating interest 054 0 0 0 5. Inv estments in securities 055 30.377.143 30.420.040 30.377.143 30.420.040 6. Loans & deposits 056 25.200.589 23.824.034 52.133.120 48.016.967 7. Other f inancial assets 057 0 0 0 0 IV. CASH ON HAND AND IN THE BANK 058 81.849.024 54.434.098 102.077.241 73.476.480 D) PREPAYMENTS AND ACCRUED INCOME 059 1.897.912 1.546.540 2.401.002 E) TOTAL ASSETS (001+002+034+059) 060 1.711.899.906 1.573.712.492 2.091.854.187 1.966.962.154 F) OFF-BALANCE SHEET ITEMS 061 652.402.930 600.870.808 680.360.486	Name of position:	AOP	Previous year (net)	Current year (net)	Previous year (net)	Current year (net)
						246.441.183
						203.954.691
						86.190.667
						11.587.241
						0
						0
						0
						33.822.671
						709.824
						33.112.847
						0
						837.983.659
						278.141.511
						1.539.227
						300.753
						22.243.142
						185.645.981
						1.983.303
						638.982.209

Name of position:	AOP	Previous year (net)	Current year (net)	Previous year (net)	Current year (net)
			DALEKOVOD jsc		DALEKOVOD GROUP
1	2	3	4	5	6
EQUITY AND LIABILITIES
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	325.083.979	374.230.703	302.298.710	345.174.644
I. SHARE CAPITAL	063	247.193.050	247.193.050	247.193.050	247.193.050
II. CAPITAL RESERVES	064	86.141.670	86.141.670	86.141.670	86.141.670
III. RESERVES FROM PROFIT (066+067-068+069+070)	065	44.324.747	44.324.747	76.306.051	75.823.945
1. Legal reserv es	066	11.486.600	11.486.600	11.652.410	11.652.410
2. Reserv es f or own shares	067	7.816.210	7.816.210	7.816.210	7.816.210
3. Own shares and stakes (less)	068	7.816.210	7.816.210	-7.816.210	-7.816.210
4. Statutory reserv es	069	32.838.147	32.838.147	32.838.147	32.838.147
5. Other reserv es	070	0	0	31.815.494	31.333.388
IV. REVALUATION RESERVES	071	40.016.573	40.016.573	40.014.627	40.014.627
V. RETAINED EARNINGS OR LOSS BROUGHT FORWARD (073-074)	072	-123.741.931	-92.592.061	-150.679.460	-146.660.818
1. Retained earnings	073
2. Loss brought f orward	074	123.741.931	92.592.061	150.679.460	146.660.818
VI. PROFIT OR LOSS FOR THE FINANCIAL YEAR (076-077)	075	31.149.870	49.146.724	4.018.643	43.356.295
1. Prof it f or the f inancial y ear	076	31.149.870	49.146.724	4.018.643	43.356.295
2. Loss f or the f inancial y ear	077	0	0
VII. MINORITY INTEREST	078	0	0	-695.870	-694.125
B) PROVISIONS (080 to 082)	079	26.468.723	11.320.149	29.625.995	14.475.462
1. Prov isions f or pensions, sev erance pay and similar libabilities	080	3.841.498	2.791.000	6.794.225	5.748.313
2. Prov isions f or tax obligations	081	0	0	0	0
3. Other prov isions	082	22.627.225	8.529.149	22.831.770	8.727.149
C) NON-CURRENT LIBILITIES (084 to 092)	083	648.462.527	637.284.190	600.227.570	588.789.207
1. Liabilites to related parties	084	49.488.201	49.700.839	0	0
2. Liabilities f or loans, deposits and other	085	0	0	0	0
3. Liabilities towards banks and other f inancial institutions	086	372.246.507	369.556.969	372.750.778	370.062.350
4. Amounts pay able f or prepay ment	087	0	0	0	0
5. Trade pay ables	088	46.557.538	37.925.144	46.606.037	37.925.145
6. Amounts pay able f or securities	089	169.497.514	169.497.514	170.197.988	170.197.988
7. Liabilities toward participating interests	090	668.624	599.581	668.624	599.581
8. Other non-current liabilities	091	0	0	0	0
9. Def f ered tax	092	10.004.143	10.004.143	10.004.143	10.004.143
D) CURRENT LIABILITIES (094 to 105)	093	697.378.551	540.602.152		1.145.195.785 1.008.247.543
1. Liabilites to related parties	094	51.323.164	33.038.044	0	0
2. Liabilities f or loans, deposits and other	095	402.220	345.280	0	0
3. Liabilities towards banks and other f inancial institutions	096	174.210.871	134.312.483	517.160.260	472.763.429
4. Amounts pay able f or prepay ment	097	105.548.698	93.854.493	109.296.214	99.798.329
5. Trade pay ables	098	209.940.651	132.424.850	274.679.369	204.577.942
6. Amounts pay able f or securities	099	58.509.271	58.509.271	58.509.272	58.509.272
7. Liabilities toward participating interests	100	0	0	1.571.520	1.917.384
8. Liabilities to emloy ees	101	17.605.673	16.202.700	41.690.867	40.012.612
9. Taxes, contributions and similar liabilities	102	12.063.713	10.097.942	18.832.466	15.259.408
10. Liabilities arising f rom share in the result	103	100.985	100.985	100.985	100.985
11. Liabilities arising f rom non-current assets held f or sale	104	0	0	0	0
12. Other current liabilities	105	67.673.305	61.716.104	123.354.833	115.308.182
E) ACCRUED EXPENSES AND DEFERRED INCOME	106	14.506.126	10.275.298	14.506.127	10.275.298
F) TOTAL LIABILITIES (062+079+083+093+106)	107	1.711.899.906	1.573.712.492		2.091.854.187 1.966.962.154
G) OFF-BALANCE SHEET ITEMS	108	652.402.930	600.870.808	680.360.486	638.982.209
ANNEX TO THE BALANCE SHEET (to be filled in by a company preparing the consolidated annual financial statements)
A) CAPITAL AND RESERVES
1. Attributable to equity holders of the parent company 's capital	109			302.994.580	345.868.769
2. Attributable to non-controlling interests	110			-695.870	-694.125

Name of position	AOP	1Q 2015	1Q 2016	1Q 2015	1Q 2016
1	2	3	4	5	6
			DALEKOVOD J.S.C.	DALEKOVOD GROUP
I. OPERATING INCOME (112+113) 1. Sales rev enue	111 112	131.599.565 129.076.864	193.312.943 124.446.258	208.103.850 200.978.179	248.296.655 180.911.423
2. Other operating income	113	2.522.701	68.866.685	7.125.671	67.385.232
II. OPERATING EXPENSES (115+116+120+124+125+126+129+130)	114	109.687.917	134.742.042	187.199.135	199.216.333
1. Changes in inv entories of f inished products and work in progress	115	20.907	531	7.838.701	-14.096.632
2. Material costs (117 to 119)	116	70.503.302	82.931.470	105.123.813	125.326.528
a) Cost of raw materials & consumables	117	32.252.645	36.685.274	49.129.722	55.862.095
b) Cost of goods sold c) Other costs	118 119	7.589.382 30.661.275	10.483.170 35.763.026	8.694.169 47.299.922	27.107.907 42.356.526
3. Staf f costs (121 to 123)	120	24.828.430	34.387.406	48.356.407	56.824.459
a) Net salaries	121	14.986.868	24.709.065	29.110.571	38.536.021
b) Employ ee income tax	122	6.464.418	6.302.457	12.456.217	11.920.489
c) Tax on pay roll	123	3.377.144	3.375.884	6.789.619	6.367.949
4. Depreciation and amortisation	124	8.413.308	8.453.958	12.823.819	12.592.310
5. Other expenditures	125	3.229.807	1.426.946	9.780.851	3.364.497
6. Value adjustment (127+128)	126	33.460	0	37.353	485
a) non-current assets (without f inancial assets) b) current asssets (without f inancial assets)	127 128	0 33.460	0 0	3.893 33.460	485
7. Prov isions	129	0	0
8. Other operating expenses	130	2.658.703	7.541.731	3.238.191	15.204.686
I I I F I N AN C I AL I N C O ME ( 1 3 2 t o 1 3 6 )	131	7.748.113	877.685	3.280.376	5.610.614
1. Interest income, f oreign exhange dif f erences, div idends and other f inancial income related to subsidiaries	132	7.026.651	236.247
2. Interest income, f oreign exchange dif f erences, div idends and other f inancial income related to third parties	133	721.462	641.438	3.270.998	5.598.120
3. Part of income f rom associates and participating interests	134	0	0
4. Unrealized gains (income) f rom the f inancial assets	135	0	0
5. Other f inancial income	136	0	0	9.378	12.494
IV. FINANCIAL COSTS (138 to 141)	137	6.005.857	5.461.804	9.774.787	6.320.208
1. Interest, f oreign exchange df if f erences and other expenses related to subsidiaries	138	444.910	344.652
2. Interest, f oreign exchange dif f erences and other expenses related to third parties	139	5.560.947	5.117.152	9.771.740	6.320.208
3. Unrealized loss (expenses) f rom the f inancial assets	140	0	0
4. Other f inancial expenses	141	0	0	3.047
V. SHARE OF INCOME OF ASSOCIATES	142	0	0	5.790.067
VI. SHARE OF LOSS OF ASSOCIATES	143	0	0	132.429	61.938
VII. EXTRAORDINARY - OTHER INCOME VIII. EXTRAORDINARY - OTHER EXPENSES	144 145	0 0	0 0	0 0
IX. TOTAL INCOME (111+131+142 + 144)	146	139.347.678	194.190.628	217.174.293	253.907.269
X. TOTAL EXPENSES (114+137+143 + 145)	147	115.693.774	140.203.846	197.106.351	205.598.479
XI. PROFIT OR LOSS BEFORE TAX (146-147)	148	23.653.904	53.986.782	20.067.942	48.308.790
1. Prof it bef ore tax (146-147)	149	23.653.904	53.986.782	20.067.942	48.308.790
2. Loss bef ore tax (147-146)	150	0	0
XII. INCOME TAX EXPENSE	151	0	4.840.058	1.001.307	4.952.495
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151) 1. Prof it f or the period (149-151)	152 153	23.653.904 23.653.904	49.146.724 49.146.724	19.066.634 19.066.634	43.356.295 43.356.295
2. Loss f or the period (151-148)	154
ANNEX TO THE PROFIT AND LOSS ACCOUNT (to be filled in by entities submitting consolidated financial statements)
XIV. PROFIT OR LOSS FOR THE PERIOD
1. Attributable to owners of the company	155	0	0	19.086.879	43.356.295
2. Attributable to non-controlling interests	156	0	0	-20.245
STATEMENTS OF COMPREHENSIVE INCOME (to be filled by entities who work in compliance with IFRS)
I. PROFIT OR LOSS FOR THE PERIOD (= 152) II. OTHER COMPREHENSIVE INCOME /LOSS BEFORE TAX (159 to 165)	157 158	23.653.904	49.146.724	19.066.634	43.356.295 -482.112
1. Exchange dif f erences arising f rom f oreign operations	159				-482.112
2. Rev aluation of non-current assets and intangible assets	160
3. Gains or loss av ailable f or sale inv estments	161
4. Gains or loss on net mov ement on cash f low hedges	162
5. Gains or loss on net inv estments hedge	163
6. Share of the other comprehensiv e income/loss of associates	164
7. Acturial gain / loss on post employ ment benef it obligations III. TAX ON OTHER COMPREHENSIVE INCOME OF THE PERIOD	165 166
IV. NET OTHER COMPREHENSIVE INCOME OR LOSS FOR THE YEAR (158-166)	167				-482.112
V. TOTAL COMPREHENSIVE INCOME/LOSS FOR THE PERIOD (157+167)	168	23.653.904	49.146.724	19.066.634	42.874.183
APPENDIX Statement of Comprehensive Income (to be filled in by entities submitting consolidated financial statements)
VI. TOTAL COMPREHENSIVE INCOME/LOSS FOR THE PERIOD
1. Attributable to owners of the company 2. Attributable to non-controlling interests	169 170	0 0	0 0	19.086.879 -20.245	42.874.183

Name of position:	AOP	Previous period	Current period	Previous period	Current period
1	2	3	4	5	6
			DALEKOVOD jsc		DALEKOVOD GROUP
CASH FLOW FROM OPERATING ACTIVITIES
1. Pre-tax prof it	001	23.653.904	53.986.782	20.067.942	48.308.790
2. Depreciation	002	8.413.308	8.453.958	12.823.819	12.592.310
3. Increase in short-term liabilities	003		0		0
4. Decrease in short-term receiv ables	004	30.295.751	124.761.368	33.912.755	118.348.233
5. Reduction of stocks	005	4.251.263	3.365.927	10.404.429	0
6. Other increase in cash f low	006		0		0
I. Total increase in cash flow from operating activities (001 to 006)	007	66.614.226	190.568.035	77.208.945	179.249.333
1. Decrease in short-term liabilities	008	34.724.468	95.800.921	36.213.973	69.755.563
2. Increase in short-term receiv ables	009		0		0
3. Increase in stocks	010		0		15.423.496
4. Other decrease in cash f low	011	33.760.383	78.869.194	39.110.206	80.746.985
II Total decrease in cash flow from operating activities (008 to 011)	012	68.484.851	174.670.115	75.324.179	165.926.044
A1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES (007-012)	013	0	15.897.920	1.884.766	13.323.289
A2) NET DECREASE IN CASH FLOW FROM OPERATING ACTIVITIES (012-007)	014	1.870.625	0		0
CASH FLOW FROM INVESTMENT ACTIVITIES
1. Cash receipts f rom sale of f ixed tangible and intangible assets	015	7.828	0	86.225	0
2. Cash receipts f rom sale of treasury and debt f inancial instruments	016	0	0		0
3. Cash receipts f rom interests	017	176.976	0	176.976	0
4. Cash receipts f rom div idends	018	2.829.057	0		0
5. Other cash receipts f rom inv estment activ ities	019	7.679.008	11.928.432	3.793.858	8.725.300
III. Total cash receipts from investment activities (015 to 019)	020	10.692.869	11.928.432	4.057.059	8.725.300
1. Expenditures f or buy ing f ixed assets and intangible assets	021	836.835	2.554.587	1.435.096	3.014.688
2. Expenditures f or purchasing treasury and debt f inancial instruments	022		0		0
3. Other expenditures f rom inv estment activ ities	023	20.508.670	10.029.722	4.504.599	0
IV. Total expenditures from investment activities (021 to 023)	024	21.345.505	12.584.309	5.939.695	3.014.688
B1) NET INCREASE IN CASH FLOW FROM INVESTMENT ACTIVITIES (020-024)	025	0	0		5.710.612
b2) NET DECREASE IN CASH FLOW FROM INVESTMENT ACTIVITIES (024-020)	026	10.652.636	655.877	1.882.636	0
CASH FLOW FROM FINANCIAL ACTIVITIES
1. Cash receipts f rom issuance of treasury and debt f inancial instruments	027	0	0		0
2. Cash receipts f rom loan principal, bonds, borrowings and other loans	028	6.965.422	0	7.488.257	0
3. Total cash receipts f rom f inancial activ ities	029		0		0
V. Total cash receipts from financial activities (027 to 029)	030	6.965.422	0	7.488.257	0
1. Expenditures f or repay ment of loan principal and bonds	031		0	1.766.594	0
2. Expenditures f or pay ment of div idends	032	0	0	2.829.057	0
3. Expenditures f or f inancial leasing	033	3.121.121	2.689.538	3.195.112	2.688.428
4. Expenditures f or redemption of treasury shares	034	0	0		0
5. Other expenditures f rom f inancial activ ities	035	13.564.300	39.967.431	14.380.617	44.946.234
VI. Total expenditures from financial activities (031 to 035)	036	16.685.421	42.656.969	22.171.380	47.634.662
C1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES (030-036)	037	0	0		0
C2) NET DECREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES (036-030)	038	9.719.999	42.656.969	14.683.123	47.634.662
Total increase in cash f low (013 – 014 + 025 – 026 + 037 – 038)	039	0	0		0
Total decrease in cash f low (014 – 013 + 026 – 025 + 038 – 037)	040	22.243.260	27.414.926	14.680.993	28.600.761
Cash and cash equivalents at the beginning of the period	041	41.762.484	81.849.024	66.387.214	102.077.241
Increase in cash and cash equivalents	042	0	0		0
Decrease in cash and cash equivalents	043	22.243.260	27.414.926	14.680.993	28.600.761
Cash and cash equivalents at the end of the period	044	19.519.224	54.434.098	51.706.221	73.476.480

Name of position:		Previous	Current	Previous	Current
	AOP	period	period	period	period
		DALEKOVOD jsc		DALEKOVOD GROUP
1	2	3	4	5	6
1. Share capital	001	247.193.050	247.193.050	247.193.050	247.193.050
2. Capital reserves	002	86.141.670	86.141.670	86.141.670	86.141.670
3. Reserves from profit	003	44.324.747	44.324.747	76.306.050	75.823.945
4. Retained profit or loss carried forw ard	004	-123.741.931	-92.592.061	-151.375.330	-147.354.943
5. Profit or loss of current year	005	31.149.870	49.146.724	4.018.643	43.356.295
6. Revaluation of longterm tangible assets	006	40.016.573	40.016.573	40.014.627	40.014.627
7. Revaluation of intangible assets	007
8. Revaluation of financial assets available for sale	008
9. Other revaluations	009
10.Total equity and reserves (AOP 001 to 009)	010	325.083.979	374.230.703	302.298.710	345.174.644
11. Foreign exchange differences arising from the titles of net	011
12. Current and deferred taxes (part)	012
13. Cash flow protection	013
14. Changes in accounting policies	014
15. Correction of significant errors in the previous period	015	0	0	0	0
16. Other changes in equity	016	0	0	0	0
17. Total increase or decrease in equity (AOP 011 to 016)	017	0	0	0	0
17 a. Attributed to parent company equity holders	018			302.994.580	345.868.769
17 b. Attributed to minority interest	019			-695.870	-694.125

NOTES TO FINANCIAL STATEMENTS VII

1. BASIC DETAILS

MANAGEMENT BOARD

Alen Premužak - Chairman of the Management Board Branimir Alujević - Management Board Member Helena Jurčić Šestan - Management Board Member Marko Jurković - Management Board Member Mirko Leko - Management Board Member

SUPERVISORY BOARD

Marko Lesić - Chairman of the Supervisory Board Ivan Peteržilnik - Deputy Chairman of the Supervisory Board Krešimir Ružđak - Supervisory Board Member Vlado Čović - Supervisory Board Member Hrvoje Markovinović - Supervisory Board Member Uwe Heiland - Supervisory Board Member Marko Makek - Supervisory Board Member Mirela Tomljanović Radović - Supervisory Board Member Anton Pernar - Supervisory Board Member

Dalekovod dioničko društvo za inženjering, proizvodnju i izgradnju

Marijana Čavića 4, 10 000 Zagreb, Hrvatska 10001 Zagreb, P.P. 128 URL: www.dalekovod.hr. www.dalekovod.com E-mail: dalekovod@dalekovod.hr Share capital: HRK 247, 193, 050.00. Number of shares: 24, 719, 305 IBAN: HR8323600001101226102 ZABA Zagreb REG. NO.: (MBS): 080010093, Commercial Court in Zagreb Stat. No.: 3275531 PIN: 47911242222 Activity code: 4222 (Construction of utility projects for electricity and telecommunications)

2. SHAREHOLDINGS (as at 31 March 2016):

Individuals	3,769,002
Financial institutions	4,936,936
Konsolidator d.o.o.	15,000,000
Others	969,433
Own shares	43,934
TOTAL	24,719,305

3. MERGERS AND CONSOLIDATIONS

There were no mergers or consolidations in Q1 2016.

4. UNCERTAINTY

No items of doubtful and bad debt affecting business continuity were identified in Q1 2016.

5. DESCRIPTION OF PRODUCTS AND SERVICES

Over time, Dalekovod d.d. has become specialized in performing contracts on a turnkey basis in the following areas:

• electrical facilities, especially transmission lines between 0.4 and 500 kV
• transformer stations of all levels and voltages up to 500 kV
• · air, underground and underwater cables up to 110 kV
• telecommunication facilities, all types of networks and antennas
• production of suspension and joining equipment for all types of transmission lines and transformer stations between 0.4 and 500 kV
• production and installation of all metal parts for roads, especially for road lighting, security barriers and traffic signals, tunnel lighting and traffic management
• · electrification of railway tracks and tramways

6. CHANGES IN ACCOUNTING POLICIES

There are no new accounting policies.