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Dalekovod d.d. Interim / Quarterly Report 2017

Aug 8, 2017

2088_10-q_2017-08-08_f8eab8b5-a751-4992-9641-14fce585c8c9.pdf

Interim / Quarterly Report

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Zagreb, 28 July 2017

MANAGEMENT REPORT FOR JAN - JUN 2017

Unaudited, consolidated and unconsolidated

Povezujemo svjetove, gradimo budućnost.

SADRŽAJ:

  • $\mathbf{L}$ MANAGEMENT BOARD'S REPORT
  • $\mathbf{H}$ . DECLARATION
  • BALANCE SHEET $III.$
  • STATEMENT OF COMPREHENSIVE INCOME $\mathsf{IV}_{\mathsf{L}}$
  • $V_{\rm{H}}$ STATEMENT OF CASH FLOWS
  • STATEMENT OF CHANGES IN EQUITY $VI.$
  • VII. NOTES TO THE FINANCIAL STATEMENTS

MANAGEMENT BOARD'S REPORT

KEY PERFORMANCE INDICATORS

L

Operating results achieved in the first half-year of 2017 indicate continuous recovery and growth in all operating segments of Dalekovod d.d. ("the Company") and Dalekovod Grupa ("the Group") after completing the pre-bankruptcy settlement.

The Croup's and Company's financial stability relied on activities in four key segments: profitable growth and development, cost-effectiveness, stability of cash flow and risk management.

The Group's focus on revenue growth is reflected in the 42.5% increase in operating revenue compared to the same period in 2016, with sales revenue increasing by 57.5%. Revenue growth is the result of a significant increase in activities compared to the same period last year, both on foreign markets, especially Norway and Finland, and on the domestic market. The share of the revenue generated on the foreign markets in the first half-year of 2017 was 63.4%, against 58.75% generated during the same period in 2016. Dalekovod Grupa remains focused on foreign markets and continues to secure new work contracts abroad. The Group secured a new EUR 35 million project in Norway, and a project in Sweden that is particularly significant, as it opens a new market from which Dalekovod has been absent in the past years.

The Group's EBITDA of HRK 39.4 million is lower by 39.6% compared to 2016, which is expected considering the effects of one-time items of revenue obtained by selling rights to the Ministry of Finance in the first quarter of 2016 (HRK 50 million) and currency translation gains from operating activities, while the first half-year of 2017 was unaffected by one-time items. Excluding the one-time items of revenue from 2016, EBITDA grew by 175.7%. In this period the Group's gross margin, as the best indicator of operating effectiveness, increased by HRK 28.1 million.

The Group's net profit obtained in the first half-year is HRK 11.7 million, HRK 16.4 million less compared to 2016, which is also the result of one-time items of revenue in 2016.

During the same period Dalekovod d.d. (the Company) achieved an operating revenue of HRK 555.1 million, which is a 45.3% increase compared to last year. Comparable to the Group level, the Company's sales revenue is particularly highlighted as it increased by 66.9% compared to the same period the year before.

The Company's EBITDA of HRK 41.3 million is 39.0% decrease compared to the same period last year. As with the Group, this is the result of a one-time item of revenue obtained by selling rights to the Ministry of Finance in the first quarter of 2016 (HRK 50 million) and currency translation gains from operating activities. Unaffected by one-time items from 2016, EBITDA for the first half-year increased by 157.4%. At the same time, the gross margin, as the best indicator of operating effectiveness, increased by 68.8%, continuing a strong upward trend for operating cash flow.

The Company's net profit in the first half-year is HRK 11.3 million, a 72.4% decrease compared to the same period last year, which is, as is the case with other indicators, the result of onetime items of revenue from the first half-year of 2016

On behalf of the Management, Board:

Alen Premužak Chairman of the Management Board Dąłekovoj

DECLARATION Ш.

Pursuant to Article 410(1), Article 407(2)(3), and Article (407)(3) of the Capital Market Act, the persons responsible for preparing the financial statements Alen Premužak - Chairman of the Management Board, Marko Jurković - member of the Management Board, Helena Jurčić Šestan - member of the Management Board, Ivica Kranjčić - member of the Management Board, Ivan Kurobasa - member of the Management Board, hereby make this

DECLARATION

To the best of our knowledge, the financial statements for the reporting period, prepared according to applicable financial reporting standards, provide an integral and true view of the assets, liabilities, and operating results of DALEKOVOD and of the companies included in consolidation, with the brief comment of the causes of presented information. The financial statements have not been audited.

On behalf of the Management Board:

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

Povezujemo svjetove, gradimo budućnost.

Ш.
ASSETS

BALANCE SHEET (unaudited)

Name of position: AOP Previous year
(net)
Current year (net) Previous year
(net)
Current year (net)
DALEKOVOD jsc DALEKOVOD GROUP
1 $\overline{2}$ $\overline{3}$ $\overline{4}$ 5 1 6
ASSETS
A) SUBSCRIBED CAPITAL UNPAID 001 $\mathbf{0}$ n $\overline{0}$ $\mathbf 0$
B) NON CURRENT ASSETS (003+010+020+029+033) 002
003
729.484.108 722.464.160 519.144.893
14.088.947
512.816.383
I. INTANGIBLE ASSETS (004 to 009)
1. Research & Development expenditure
004 9.817.024
$\Omega$
8.194.270 12.587.548
0
2. Patents, licences, roy alties, trade marks, software&similar rights 005 9.000.768 7.378.014 10.400.077 8.693.342
3. Goodwill 006 $\mathbf{0}$ 1.213.000 1.213.000
4. Prepayments for intangible assets 007 $\Omega$ $\Omega$ 0
5. Intangible assets under construction 008 816.256 816.256 2.475.870 2.681.206
6. Other intangible assets 009 $\Omega$ $\Omega$ $\Omega$
II. TANGIBLE ASSETS (011 to 019) 010 367.468.166 362.215.154 449.683.983 444.572.598
1. Land 011 1.157.642 1.157.642 21.792.041 21.712.600
2. Property 012 6.491.873 6.217.039 149.728.949 145.924.385
3. Plants and equipment 013 20.960.778 23.196.862 76.064.955 71.986.677
4. Tools, plants &v ehicles 014 13.468.054 16.484.454 25.372.856 29.531.525
5. Biological asset 015 $\Omega$ $\Omega$ 0
6. Prepayments for tangible assets
7. Assets under construction
016
017
$\mathbf{0}$
$\mathbf{0}$
$\Omega$
8.928.218
$\circ$
8. Other tangible assets 018 161.425.158 160.377.357 161.425.158 8.842.818
160.377.357
9. Investments property 019 163.964.661 154.781.800 6.371.806 6.197.236
III. NON-CURRENT FINANCIAL ASSETS (021 to 028) 020 326.699.590 321.922.709 29.677.574 25.389.786
1. Share in related parties 021 276.891.774 280.922.991 $\Omega$ $\mathbf 0$
2. Loans to related parties 022 18.924.528 13.954.002 $\Omega$ $\circ$
3. Participating interests (stakes) 023 8.290.373 8.290.373 2.742.698 2.693.402
4. Loans to participating interest 024 $\mathbf{0}$ 0
5. Investments in securities 025 4.073.972 410.587 4.568.447 854.532
6. Loans & deposits 026 18.518.943 18.344.756 22.366.429 21.841.852
7. Other non-current financial assets 027 $\mathbf{0}$ $\Omega$ 0
8. Investment accounted by equity method 028 $\Omega$ $\circ$
IV. TRADE RECEIVABLES (030 to 032) 029 25.499.328 30.132.027 25.694.389 30.266.451
1. Receivables from related parties
2. Receivables from credit sales
030
031
$\mathbf 0$
$\Omega$
$\Omega$ 0
$\mathbf 0$
3. Other receivables 032 25.499.328 30.132.027 25.694.389 30.266.451
V. DEFERRED TAX ASSETS 033 $\mathbf{0}$ $\mathbf{0}$ $\overline{0}$
C) CURENT ASSETS (035+043+050+058) 034 620.960.788 609.500.982 926.739.408 901.849.616
I. INVENTORIES (036 to 042) 035 11.059.440 8.336.926 221.770.291 219.456.976
1. Raw materials & consumables 036 10.347.176 7.678.923 77.210.362 70.558.096
2. Work in progress 037 $\mathbf{0}$ $\Omega$ 30.502.896 20.656.956
3. Products 038 235.023 224.376 41.683.014 54.217.429
4. Merchandise 039 477.241 433.627 6.803.287 8.064.934
5. Prepay ments for inventories 040 $\mathbf{0}$ $\Omega$ 527.886 916.715
6. Other av ailable-for-sale assets 041 $\mathbf{0}$ $\Omega$ 65.042.846 65.042.846
7. Biological asset 042 $\mathbf{0}$ $\overline{0}$ $\mathbf 0$ $\mathbf 0$
II. RECEIVABLES (044 to 049)
1. Receivables from related parties
043
044
460.315.534 472.148.631 533.768.966 551.972.457
$\Omega$
2. Trade receivables 045 37.496.398
177.715.374
25.636.858
173.018.277
275.484.785 263.128.394
3. Receivables from participating parties 046 519.386 428.656 1.056.277 502.654
4. Amounts receivable from employees 047 197.497 95.461 221.562 120.223
5. Receivables from government agencies 048 10.334.763 9.133.139 16.176.070 14.114.660
6. Other receivables 049 234.052.116 263.836.240 240.830.272 274.106.526
III. CURRENT FINANCIAL ASSETS (051 to 057) 050 62.736.871 74.529.856 65.772.027 66.254.327
1. Share in related parties 051 0 0
2. Loans to related parties 052 2.207.466 15.675.129 $\mathbf 0$ $\mathbf 0$
3. Participating interests (stakes) 053 $\Omega$ $\mathbf 0$
4. Loans to participating interest 054 $\circ$
5. Investments in securities 055 30.485.060 30.490.268 30.485.060 30.490.268
6. Loans & deposits 056 30.044.345 28.364.459 35.286.967 35.764.059
7. Other financial assets
IV. CASH ON HAND AND IN THE BANK
057
058
$\Omega$
86.848.943
54.485.569 $\mathbf{0}$
105.428.124
0
64.165.856
D) PREPAYMENTS AND ACCRUED INCOME 059 2.271.497 2.661.714 2.608.625 3.072.637
E) TOTAL ASSETS (001+002+034+059) 060 1.352.716.393 1.334.626.856 1.448.492.926 1.417.738.636
F) OFF-BALANCE SHEET ITEMS 061 669.618.925 634.411.257 793.206.354 691.792.784

LIABILITIES

Name of position: AOP Previous year
(net)
Current year (net) Previous year
(net)
Current year (net)
DALEKOVOD jsc DALEKOVOD GROUP
1 $\overline{2}$ 3 $\overline{4}$ 5 6
EQUITY AND LIABILITIES
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078) 062 271.183.667 282.463.616 259.907.516 270.793.608
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 43.675.007 43.675.007 75.581.849 74.744.130
1. Legal reserves 066 11.486.600 11.486.600 11.652.410 11.652.410
2. Reserves for own shares 067 8.465.950 8.465.950 8.465.950 8.465.950
3. Own shares and stakes (less) 068 $-8.465.950$ $-8.465.950$ $-8.465.950$ $-8.465.950$
4. Statutory reserves 069 32.188.407 32.188.407 67.117.790 67.117.790
5. Other reserves 070 $\Omega$ $-3.188.351$ $-4.026.070$
IV. REVALUATION RESERVES 071 69.396.583 69.396.583 69.396.583 69.396.583
V. RETAINED EARNINGS OR LOSS BROUGHT FORWARD (073-074) 072 -200.410.664 -175.222.643 $-254.479.421$ $-217.711.128$
1. Retained earnings 073 $\Omega$ n
2. Loss brought forward 074 200.410.664 175.222.643 254.479.421 217.711.128
VI. PROFIT OR LOSS FOR THE FINANCIAL YEAR (076-077) 075 25.188.021 11.279.949 36.768.293 11.721.151
1. Profit for the financial year 076 25.188.021 11.279.949 36.768.293 11.721.151
2. Loss for the financial year 077 $\mathbf 0$ $\sqrt{ }$ $\Omega$
VII. MINORITY INTEREST 078 $-694.508$ $-691.848$
B) PROVISIONS (080 to 082) 079 22.654.443 22.654.443 25.855.947 25.833.094
1. Provisions for pensions, severance pay and similar libabilities 080 4.404.568 4.404.568 7.542.238 7.540.261
2. Provisions for tax obligations 081 $\Omega$ $\mathbf 0$
3. Other provisions 082 18.249.875 18.249.875 18.313.709 18.292.833
C) NON-CURRENT LIBILITIES (084 to 092) 083 428.509.757 424.134.461 415.647.492 412.856.875
1. Liabilites to related parties 084 13.141.088 13.526.553 $\mathbf 0$
2. Liabilities for loans, deposits and other 085 $\Omega$ $\Omega$ $\mathbf{0}$
3. Liabilities towards banks and other financial institutions 086 347.508.682 341.229.792 347.718.745 343.411.377
4. Amounts pay able for prepay ment 087 $\Omega$ $\Omega$
5. Trade pay ables 088 9.742.640 10.894.674 9.811.399 10.962.056
6. Amounts pay able for securities 089 42.495.986 43.007.202 42.495.987 43.007.202
7. Liabilities toward participating interests 090 387.965 242.844 387.965 242.844
8. Other non-current liabilities 091 $\Omega$ $\sqrt{ }$ $\mathbf 0$
9. Deffered tax 092 15.233.396 15.233.396 15.233.396 15.233.396
D) CURRENT LIABILITIES (094 to 105) 093 614.606.694 594.468.787 731.320.138 697.349.510
1. Liabilites to related parties 094 37.787.055 35.559.642 0 $\mathbf 0$
2. Liabilities for loans, deposits and other 095 $\Omega$ $\Omega$ $\Omega$
3. Liabilities towards banks and other financial institutions 096 113.854.477 104.499.299 157.023.499 135.199.096
4. Amounts pay able for prepay ment 097 130.455.505 90.031.566 135.581.042 94.582.228
5. Trade pay ables 098 154.428.383 175.332.286 225.830.671 246.874.737
6. Amounts pay able for securities 099 60.832.636 58.509.271 60.832.637 58.509.272
7. Liabilities toward participating interests 100 $\Omega$ 1.153.639 486.179
8. Liabilities to emloyees 101 25.739.721 33.663.366 48.739.877 57.346.583
9. Taxes, contributions and similar liabilities 102 28.301.085 37.852.970 33.408.724 42.651.252
10. Liabilities arising from share in the result 103 100.985 100.985 100.985 100.985
11. Liabilities arising from non-current assets held for sale 104 $\mathbf{0}$ $\mathbf 0$ $\mathbf 0$ - 0
12. Other current liabilities 105 63.106.847 58.919.402 68.649.064 61.599.178
E) ACCRUED EXPENSES AND DEFERRED INCOME 106 15.761.832 10.905.549 15.761.833 10.905.549
F) TOTAL LIABILITIES (062+079+083+093+106) 107 1.352.716.393 1.334.626.856 1.448.492.926 1.417.738.636
G) OFF-BALANCE SHEET ITEMS 108 669.618.925 634.411.257 793.206.354 691.792.784
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 109 260.602.024 271.485.456
2. Attributable to non-controlling interests 110 $-694.508$ $-691.848$

$W_{\cdot}$

STATEMENT OF COMPREHENSIVE INCOME (unaudited)

Name of position AOP Previous period Current period Previous period Current period
1. $\overline{2}$ $\overline{3}$
$\overline{4}$
5
6
DALEKOVOD J.S.C. DALEKOVOD GROUP
. OPERATING INCOME (112+113)
1. Sales revenue
111
112
382.087.740
322.869.767
555.106.161
538.711.768
495.858.498
439.297.883
706.841.253
691.852.179
2. Other operating income 113 59.217.973 16.394.393 56.560.615 14.989.074
II. OPERATING EXPENSES (115+116+120+124+125+126+129+130) 114 331.419.314 531.016.200 455.867.999 689.143.871
1. Changes in inventories of finished products and work in progress 115 16.792 10.647 $-25.564.112$ $-2.589.574$
2. Material costs (117 to 119) 116 204.747.281 386.533.286 282.273.999 475.977.067
a) Cost of raw materials & consumables 117 86.786.927 172.088.318 139.395.092 206.272.355
b) Cost of goods sold 118 22.094.027 84.220.976 35.404.442 115.116.903
c) Other costs
3. Staff costs (121 to 123)
119
120
95.866.327
74.842.853
130.223.992
88.291.575
107.474.465
121.192.327
154.587.809
135.924.112
a) Net salaries 121 55.125.397 67.429.558 83.311.837 97.266.475
b) Employ ee income tax 122 12.603.943 12.756.997 24.865.570 24.113.666
c) Tax on pay roll 123 7.113.513 8.105.020 13.014.920 14.543.971
4. Depreciation and amortisation 124 16.961.993 17.167.751 25.301.518 21.709.195
5. Other expenditures 125 5.649.101 5.838.330 10.802.039 12.032.990
6. Value adjustment (127+128) 126 79.850 22.151 184.732
a) non-current assets (without financial assets) 127 $\Omega$ 79.850 22.151 81.912
b) current asssets (without financial assets)
7. Provisions
128
129
$\Omega$
$\Omega$
$\mathbf{0}$
$\Omega$
$\mathbf 0$
$\Omega$
102.820
8. Other operating expenses 130 29.201.294 33.094.761 41.840.077 45.905.349
III. FINANCIAL INCOME (132 to 136) 131 3.306.992 3.533.624 7.449.759 10.917.217
1. Interest income, foreign exhange differences, dividends and other financial
income related to subsidiaries
132 2.271.389 433.072 $\mathbf{0}$ $\mathbf 0$
2. Interest income, foreign exchange differences, dividends and other financial
income related to third parties
133 1.035.603 3.053.104 7.453.346 10.869.769
3. Part of income from associates and participating interests 134 $\mathbf 0$ $\mathbf 0$ $\mathbf 0$ $\mathbf 0$
4. Unrealized gains (income) from the financial assets 135 $\Omega$ $\Omega$ $\Omega$ $\Omega$
5. Other financial income 136 $\Omega$ 47.448 $-3.587$ 47.448
IV. FINANCIAL COSTS (138 to 141) 137 10.738.086 13.787.886 17.986.907 14.073.333
1. Interest, foreign exchange dfifferences and other expenses related to
subsidiaries
138 659.636 641.745 $\mathbf{0}$ $\mathbf 0$
2. Interest, foreign exchange differences and other expenses related to third parties 139 10.078.450 13.146.141 17.986.907 14.073.333
3. Unrealized loss (expenses) from the financial assets 140 $\Omega$ $\mathbf 0$ $\mathbf 0$ $\mathbf 0$
4. Other financial expenses
$V_{\rm{H}}$
141
142
$\mathbf 0$
$\mathbf{0}$
$\mathbf 0$
$\mathbf{0}$
$\mathbf 0$
1.017.686
$\mathbf 0$
$\mathbf{0}$
SHARE OF INCOME OF ASSOCIATES
VI. SHARE OF LOSS OF ASSOCIATES
143 $\mathbf{0}$ $\mathbf{0}$ $\mathbf{0}$ 49.297
VII. EXTRAORDINARY - OTHER INCOME 144 $\mathbf{0}$ $\mathbf{0}$ $\mathbf{0}$ $\bf{0}$
VIII. EXTRAORDINARY - OTHER EXPENSES 145 $\mathbf{0}$ $\mathbf{0}$ $\mathbf{0}$
IX. TOTAL INCOME (111+131+142 + 144) 146 385.394.732 558.639.785 504.325.943 717.758.470
TOTAL EXPENSES (114+137+143 + 145) 147 342.157.400 544.804.086 473.854.906 703.266.501
XI. PROFIT OR LOSS BEFORE TAX (146-147) 148 43.237.332 13.835.699 30.471.037 14.491.969
1. Prof it before tax (146-147) 149 43.237.332 13.835.699 30.471.037 14.491.969
2. Loss before tax (147-146)
XII. INCOME TAX EXPENSE
150
151
2.336.046 $\Omega$
2.555.750
$\Omega$
2.396.198
2.770.818
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151) 152 40.901.286 11.279.949 28.074.839 11.721.151
1. Profit for the period (149-151) 153 40.901.286 11.279.949 28.074.839 11.721.151
2. Loss for the period $(151-148)$ 154 U υ υ
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 $\mathbf 0$ $\mathbf 0$ 28.074.839 11.721.151
2. Attributable to non-controlling interests 156 $\Omega$ $\mathbf{0}$ $\mathbf{0}$ $\mathbf{0}$
STATEMENTS OF COMPREHENSIVE INCOME (to be filled by entities who work in compliance with IFRS)
I. PROFIT OR LOSS FOR THE PERIOD (= 152)
157 40.901.286 11.279.949 28.074.839 11.721.151
II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAX (159 to 165) 158 0 $\mathbf 0$ 145.431 $-835.059$
1. Exchange differences arising from foreign operations 159 $\mathbf 0$ $\mathbf 0$ 145.431 $-835.059$
2. Revaluation of non-current assets and intangible assets 160 $\mathbf 0$ $\mathbf 0$ $\mathbf{0}$ $\mathbf 0$
3. Gains or loss available for sale investments 161 $\mathbf 0$ $\mathbf{0}$ $\mathbf{0}$ $\overline{0}$
4. Gains or loss on net movement on cash flow hedges 162 0 $\mathbf{0}$ $\mathbf 0$ $\overline{0}$
5. Gains or loss on net investments hedge 163 $\mathbf 0$ ö ö õ
6. Share of the other comprehensive income/loss of associates 164
165
$\mathbf{0}$
$\mathbf 0$
$\overline{0}$
$\mathbf 0$
$\mathbf{0}$
$\mathbf{0}$
$\pmb{0}$
$\mathbf 0$
7. Acturial gain / loss on post employ ment benef it obligations
III. TAX ON OTHER COMPREHENSIVE INCOME OF THE PERIOD
166 $\mathbf{0}$ $\mathbf 0$ $\mathbf{0}$ $\mathbf 0$
IV. NET OTHER COMPREHENSIVE INCOME OR LOSS FOR THE YEAR (158-166) 167
168
$\Omega$
40.901.286
0 145.431 $-835.059$
V. TOTAL COMPREHENSIVE INCOME/LOSS FOR THE PERIOD (157+167)
APPENDIX Statement of Comprehensive Income (to be filled in by entities submitting consolidated financial statements)
11.279.949 28.220.270 10.886.092
VI. TOTAL COMPREHENSIVE INCOME/LOSS FOR THE PERIOD
1. Attributable to owners of the company 169 0 $\mathbf 0$ 28.222.425 10.883.431
2. Attributable to non-controlling interests 170 $\Omega$ $\Omega$ $-2.155$ 2.661
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 43.237.332 13.835.699 30.471.037 14.491.969
2. Depreciation 002 16.961.993 17.167.751 25.301.518 21.709.195
3. Increase in short-term liabilities 003 0 18.676.490 0 20.376.606
4. Decrease in short-term receiv ables 004 108.304.146 14.479.800 95.801.838 12.910.014
5. Reduction of stocks 005 9.037.401 2.722.514 0 2.313.315
6. Other increase in cash f low 006 0 0 0 0
I. Total increase in cash flow from operating activities (001 to 006) 007 177.540.872 66.882.254 151.574.393 71.801.099
1. Decrease in short-term liabilities 008 80.749.206 0 37.843.480 0
2. Increase in short-term receiv ables 009 0 0 0 0
3. Increase in stocks 010 0 0 32.486.275 0
4. Other decrease in cash f low 011 47.461.969 63.402.252 60.492.040 78.561.052
II Total decrease in cash flow from operating activities (008 to 011) 012 128.211.175 63.402.252 130.821.795 78.561.052
A1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES (007-012) 013 49.329.697 3.480.002 20.752.598 0
A2) NET DECREASE IN CASH FLOW FROM OPERATING ACTIVITIES (012-007) 014 0 0 0 6.759.953
CASH FLOW FROM INVESTMENT ACTIVITIES
1. Cash receipts f rom sale of f ixed tangible and intangible assets 015 0 0 6.398.734 0
2. Cash receipts f rom sale of treasury and debt f inancial instruments 016 0 0 0 0
3. Cash receipts f rom interests 017 0 404.258 0 0
4. Cash receipts f rom div idends 018 0 2.167.567 0 0
5. Other cash receipts f rom inv estment activ ities 019 382.866 4.785.535 4.963.193 91.573
III. Total cash receipts from investment activities (015 to 019) 020 382.866 7.357.360 11.361.927 91.573
1. Expenditures f or buy ing f ixed assets and intangible assets 021 6.398.734 10.291.985 0 15.096.411
2. Expenditures f or purchasing treasury and debt f inancial instruments 022 869.411 0 0 0
3. Other expenditures f rom inv estment activ ities 023 3.266.424 13.751.681 597.133 0
IV. Total expenditures from investment activities (021 to 023) 024 10.534.569 24.043.666 597.133 15.096.411
B1) NET INCREASE IN CASH FLOW FROM INVESTMENT ACTIVITIES (020-024) 025 0 0 10.764.794 0
b2) NET DECREASE IN CASH FLOW FROM INVESTMENT ACTIVITIES (024-020) 026 10.151.703 16.686.306 0 15.004.838
CASH FLOW FROM FINANCIAL ACTIVITIES
1. Cash receipts f rom issuance of treasury and debt f inancial instruments 027 0 0 0 0
2. Cash receipts f rom loan principal, bonds, borrowings and other loans 028 2.751.126 0 33.021.752 0
3. Total cash receipts f rom f inancial activ ities 029 0 0 0 0
V. Total cash receipts from financial activities (027 to 029) 030 2.751.126 0 33.021.752 0
1. Expenditures f or repay ment of loan principal and bonds 031 0 9.330.908 15.373.320 9.330.908
2. Expenditures f or pay ment of div idends 032 0 0 0 0
3. Expenditures f or f inancial leasing 033 6.250.790 8.014.013 6.387.505 8.354.419
4. Expenditures f or redemption of treasury shares 034 649.148 0 503.718 0
5. Other expenditures f rom f inancial activ ities 035 40.041.923 1.812.149 46.763.339 1.812.150
VI. Total expenditures from financial activities (031 to 035) 036 46.941.861 19.157.070 69.027.882 19.497.477
C1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES (030-036) 037 0 0 0 0
C2) NET DECREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES (036-030) 038 44.190.735 19.157.070 36.006.130 19.497.477
Total increase in cash f low (013 – 014 + 025 – 026 + 037 – 038) 039 0 0 0 0
Total decrease in cash f low (014 – 013 + 026 – 025 + 038 – 037) 040 5.012.741 32.363.374 4.488.738 41.262.268
Cash and cash equivalents at the beginning of the period 041 81.849.024 86.848.943 102.077.241 105.428.124
Increase in cash and cash equivalents 042 0 0 0 0
Decrease in cash and cash equivalents 043 5.012.741 32.363.374 4.488.738 41.262.268
Cash and cash equivalents at the end of the period 044 76.836.283 54.485.569 97.588.503 64.165.856
Name of position: AOP Previous
period
Current
period
Previous
period
Current
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 43.675.007 43.675.007 75.581.849 74.744.130
4. Retained profit or loss carried forw ard 004 -200.410.664 -175.222.643 -255.173.929 -218.402.976
5. Profit or loss of current year 005 25.188.021 11.279.949 36.768.293 11.721.151
6. Revaluation of longterm tangible assets 006 69.396.583 69.396.583 69.396.583 69.396.583
7. Revaluation of intangible assets 007 0 0 0
0
8. Revaluation of financial assets available for sale 008 0 0 0
0
9. Other revaluations 009 0 0 0
0
10.Total equity and reserves (AOP 001 to 009) 010 271.183.667 282.463.616 259.907.516 270.793.608
11. Foreign exchange differences arising from the titles of net 011 0 0 -71.160 -835.059
12. Current and deferred taxes (part) 012 0 0 0
0
13. Cash flow protection 013 0 0 0
0
14. Changes in accounting policies 014 0 0 0
0
15. Correction of significant errors in the previous period 015 0 0 0
0
16. Other changes in equity 016 0 0 37.812.521 11.723.811
17. Total increase or decrease in equity (AOP 011 to 016) 017 0 0 37.741.361 10.888.752
17 a. Attributed to parent company equity holders 018 0 0 37.739.999 10.886.092
17 b. Attributed to minority interest 019 0 0 1.362 2.660

NOTES TO THE FINANCIAL STATEMENTS VII

1. GENERAL INFORMATION

MANAGEMENT BOARD

Alen Premužak - Chairman of the Management Board Marko Jurković - member of the Management Board Helena Jurčić Šestan - member of the Management Board Ivica Kranjčić – member of the Management Board Ivan Kurobasa - member of the Management Board SUPERVISORY BOARD Marko Lesić - Chairman of the Supervisory Board Ivan Peteržilnik - Deputy Chairman of the Supervisory Board Krešimir Ružđak - member of the Supervisory Board Vlado Čović - member of the Supervisory Board Hrvoje Markovinović - member of the Supervisory Board Uwe Heiland - member of the Supervisory Board Marko Makek - member of the Supervisory Board Mirela Tomljanović Radović - member of the Supervisory Board Anton Pernar - member of the Supervisory Board

Dalekovod dioničko društvo za inženjering, proizvodnju i izgradnju

Marijana Čavića 4, 10 000 Zagreb, CROATIA 10001 Zagreb, PO box 128 URL: www.dalekovod.hr, www.dalekovod.com E-mail: [email protected] Share capital: HRK 247,193,050.00 Number of shares: 24,719,305 IBAN: HR8323600001101226102 ZABA Zagreb Reg. No.: 080010093, the Commercial Court in Zagreb Stat. No.: 3275531 Tax number (OIB): 47911242222 Economic activity code: 4222 (Construction of utility projects for electricity and telecommunicationsl

2. SHAREHOLDER STRUCTURE (as of 30 June 2017):

Konsolidator d.o.o. 15,000,000
Natural persons 4,519,043
Financial institutions 4,170,952
Others 930,469
Own shares 98,841
TOTAL 24,719,305

3. MERGERS AND CONSOLIDATIONS

There were no mergers or consolidations in the first half-year of 2017.

4. UNCERTAINTY

No items of doubtful and bad debt affecting business continuity were identified in the first halfyear of 2017.

5. DESCRIPTION OF PRODUCTS AND SFRVICES

Over the years, Dalekovod d.d has specialized in performing turn-key contracts in the following areas:

  • electrical facilities, especially transmission lines of voltage ranging from 0.4 to 750 kV
  • substations of all levels and voltages, up to 500 kV
  • overhead, 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 substations of voltage ranging from 0.4 to 750 kV
  • production and installation of metal road equipment, especially road lighting, safety barriers and traffic signalling, tunnel lighting and traffic management
  • electrification of railway and tram tracks

6. CHANGES IN ACCOUNTING POLICIES

There are no new accounting policies.