Dalekovod d.d. — Interim / Quarterly Report 2018

May 10, 2018

Zagreb, 29 April 2018

MANAGEMENT REPORT FOR I - III 2018

Unaudited, consolidated and unconsolidated

Povezujemo svjetove, gradimo budućnost.

• $\mathbb{L}$ MANAGEMENT BOARD'S REPORT
• $\prod_{i=1}^n$ DECLARATION
• $III.$ BALANCE SHEET
• $IV.$ STATEMENT OF COMPREHENSIVE INCOME
• $V_{\cdot}$ CASH FLOW STATEMENT
• VI. REPORT ON CHANGES IN EQUITY
• VII. NOTES TO FINANCIAL STATEMENTS

MANAGEMENT BOARD'S REPORT

In the first quarter of 2018 the total business revenues of Dalekovod d.d. was 205.8 million HRK which is a decrease of 8% compared to the same period in 2017. This is a consequence of a decrease in operating activities compared to the same period last year, both on foreign markets and the domestic market.

The Company's EBITDA in Q1 of 2018 is 13 million HRK lower compared to the same period last year. The decrease in EBITDA compared to the first quarter of 2017 was mainly due to a decrease in gross margin of 5.9 million HRK, due to a decrease in operating activity, an increase in negative exchange rates of 2.1 million HRK compared to the last year resulting from the business activity in the Ukrainian market, as well as due to allocation of Dalekovod Laboratories as a business unit into Dalekovod manufacturing, which resulted in a lack of operating revenues of a separate business unit.

The net loss in Q1 of 2018 for Dalekovod d.d. is 11.8 million HRK, which is an increase of 6.5 million HRK compared to the same period last year.

Dalekovod d.d. continued fulfilling their obligations resulting from financial restructuring in 2018, as in previous years. The creditors were repaid 29 million HRK and cumulatively from 2014 to 2018, Dalekovod d.d. repaid 350.3 million HRK to their creditors. This strengthens the trust and good relations between Dalekovod d.d. and their partners. By paying the instalment of 31 March, Dalekovod completed their obligations from the pre-bankruptcy settlement towards their suppliers, and the rest are their obligations towards financial institutions for future periods.

In the first quarter of 2018 the total business revenues of Dalekovod group amounts to 253 million HRK which represents a decrease by 11% compared to the same period in 2017. The consolidated EBITDA shows a decrease of 19 million HRK compared to the same period last year, mostly due to previously mentioned reasons related to Dalekovod d.d. activities.

Dalekovod group reached the planned EBITDA in the first three months, regardless of the decrease compared to the last year (planned seasonality and project-based activities).

The Group intends to continue with the internationalisation and growth in sales revenues on foreign markets, primarily focusing on regional, Scandinavian (Norway, Finland, Sweden), Eastern European (Ukraine, Georgia) and other markets (Jordan, Lebanon), and some EU markets (Poland, Latvia, Slovenia, Germany). In these markets there is an ongoing trend of continuous investment in

renovation and extension of energy infrastructure, which represents a potential for the Group's longterm presence in the projects, on condition of its quality positioning.

Dalekovod's strategic guidelines for the future period are as follows:

• Focus on revenues increase
• Focus on efficacity in performance of projects and increase in gross margin

• Strong orientation towards contracting new jobs abroad and on domestic market

• Personnel strengthening at all levels and increased leadership abilities as well as building supportive corporate culture

On behalf of the Management Board:

Chairman of the Management Board

Alen Premuzak

Dalekovod d.d.

Pursuant to Article 410 Paragraph 1 and Article 407 Paragraph 2 Subparagraph 3 and Paragraph 3 of the Capital Market Act, the authorized persons for drawing up the report: Alen Premužak -Chairman of the Board, Helena Jurčić Šestan - member of the Board, Ivica Kranjčić - member of the Board, and Ivan Kurobasa - member of the Board, issue the following

DECLARATION

According to our best knowledge, the financial Reports for the reporting period were drawn up in compliance with the appropriate financial reporting standards; they provide a complete and honest representation of assets and obligations, and the result of Dalekovod's business activities, as well as of other companies included in the consolidation, with a brief overview of the causes for data provided. Financial reports are not revised.

On behalf of the Management Board:

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

ASSETS

Name of position: AOP		Previous year (net)	Current year (net)	Previ
		DALEKOVOD jsc
1	$\overline{2}$	3	4
ASSETS
A) SUBSCRIBED CAPITAL UNPAID	001	$\Omega$	$\cap$
B) NON CURRENT ASSETS (003+010+020+029+033)	002	700.223.851	687.901.015	$\overline{5}$
I. INTANGIBLE ASSETS (004 to 009)	003	6.785.437	5.954.037
1. Research & Development expenditure	004 005	$\mathbf 0$ 5.969.181	$\mathbf 0$ 5.137.781
2. Patents, licences, roy alties, trade marks, software&similar rights 3. Goodwill	006	$\mathbf{0}$	$\mathbf 0$
4. Prepay ments for intangible assets	007	$\Omega$	$\Omega$
5. Intangible assets under construction	008	816.256	816.256
6. Other intangible assets	009
II. TANGIBLE ASSETS (011 to 019)	010	337.167.501	337.018.170	$\overline{4}$
1. Land	011	$\Omega$
2. Property	012	803.874	779.095	$\ddagger$
3. Plants and equipment	013	21.551.028	21.084.134
4. Tools, plants & vehicles	014	15.411.168	20.790.002
5. Biological asset	015	$\mathbf{0}$	0
6. Prepay ments for tangible assets	016	$\Omega$
7. Assets under construction	017	$\Omega$	691
8. Other tangible assets	018	159.336.759	158.817.127	$\vert$ 1
9. Investments property	019	140.064.672	135.547.121
III. NON-CURRENT FINANCIAL ASSETS (021 to 028)	020	308.301.783	307.253.899
1. Share in related parties	021	280.798.810	280.780.244
2. Loans to related parties	022	7.127.296	6.757.743
3. Participating interests (stakes)	023 024	7.000 $\Omega$	7.000 $\Omega$
4. Loans to participating interest 5. Investments in securities	025	1.343.025	870.650
6. Loans & deposits	026	19.025.652	18.838.262
7. Other non-current financial assets	027	$\Omega$	0
8. Investment accounted by equity method	028	$\Omega$	$\mathbf 0$
IV. TRADE RECEIVABLES (030 to 032)	029	47.969.130	37.674.909
1. Receivables from related parties	030	$\mathbf{0}$	$\Omega$
2. Receivables from credit sales	031	$\Omega$	$\Omega$
3. Other receivables	032	47.969.130	37.674.909
V. DEFERRED TAX ASSETS	033	$\bf{0}$
C) CURENT ASSETS (035+043+050+058)	034	572.126.184	560.785.092	8
I. INVENTORIES (036 to 042)	035	8.240.766	6.893.251	$\mathbf{1}$
1. Raw materials & consumables	036	6.501.169	6.648.029
2. Work in progress	037	$\Omega$	173
3. Products	038	217.672	207.207
4. Merchandise	039	1.521.925	37.842
5. Prepay ments for inventories	040	0	0
6. Other available-for-sale assets	041	$\mathbf 0$	$\mathbf 0$
7. Biological asset	042	$\Omega$
II. RECEIVABLES (044 to 049)	043 044	442.694.650	470.789.999	$5^{\circ}$
1. Receivables from related parties 2. Trade receivables	045	30.070.234 217.276.741	28.644.571 235.958.528	3
3. Receivables from participating parties	046
4. Amounts receivable from employees	047	5.078	53.914
5. Receivables from government agencies	048	9.667.482	8.559.004
6. Other receivables	049	185.675.115	197.573.982	$\ddagger$
III. CURRENT FINANCIAL ASSETS (051 to 057)	050	31.841.696	34.956.547
1. Share in related parties	051	$\Omega$
2. Loans to related parties	052	8.716.833	10.834.790
3. Participating interests (stakes)	053	0	0
4. Loans to participating interest	054	$\mathbf 0$	$\mathbf 0$
5. Investments in securities	055	496.950	493.527
6. Loans & deposits	056	22.627.913	23.628.230
7. Other financial assets	057
IV. CASH ON HAND AND IN THE BANK	058	89.349.072	48.145.295	$\mathbf{1}$
D) PREPAYMENTS AND ACCRUED INCOME	059	2.583.322	2.643.390
E) TOTAL ASSETS (001+002+034+059)	060	1.274.933.357	1.251.329.497	1.3
F) OFF-BALANCE SHEET ITEMS	061	609.258.038	643.597.226	6

Previous year (net)	Current year (net)
DALEKOVOD GROUP
	6
0	$\Omega$
501.798.770	487.575.363
11.003.454	10.138.476
O	0
7.211.209	6.350.791
1.213.000	1.213.000
0	0
2.579.245	2.574.685
	0
416.536.361	414.689.386
20.612.199	20.568.299
136.337.822	135.825.540
62.259.604 28.243.137	57.956.497
0	33.966.522 0
0	$\Omega$
9.255.438	9.015.159
159.339.759	156.882.372
488.401	474.996
26.165.296	24.745.441
0	0
0	$\Omega$
7.000	7.000
0	0
1.599.335	875.632
24.558.961	23.862.809
0 0	0 0
48.093.659	38.002.060
0
0	0
48.093.659	38.002.060
0	0
812.072.394	779.878.922
160.596.439	172.230.062
54.779.952	60.926.775
10.160.871	16.479.256
22.833.919	23.720.285
7.530.187 254.133	5.792.825 273.545
65.037.377	65.037.377
	0
516.521.124	515.792.049
	0
313.008.406	296.868.250
0	0
23.685	78.866
14.342.466	14.163.152
189.146.566	204.681.781
27.576.440	26.218.961
0 0	0 0
0	0
0	0
496.950	493.527
27.079.490	25.725.434
0	0
107.378.391	65.637.850
3.104.509	3.348.605
1.316.975.674	1.270.802.890
663.985.533	695.568.279

EQUITY AND 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	294.573.083	282.733.148	236.301.140	212.211.904
I. SHARE CAPITAL	063	247.193.050	247.193.050	247.193.050	247.193.050
II. CAPITAL RESERVES	064	87.214.738	87.214.738	87.214.738	87.214.738
III. RESERVES FROM PROFIT (066+067-068+069+070)	065	43.675.007	43.675.007	74.860.772	72.698.063
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	$\mathbf{0}$		$-3.909.428$	$-6.072.138$
IV. REVALUATION RESERVES	071	69.402.489	69.402.489	69.402.489	69.402.489
V. RETAINED EARNINGS OR LOSS BROUGHT FORWARD (073-074)	072	$-175.222.643$	$-152.912.201$	$-254.040.325$	-241.676.178
1. Retained earnings	073	$\Omega$		$\Omega$	-0
2. Loss brought forward	074	175.222.643	152.912.201	254.040.325	241.676.178
VI. PROFIT OR LOSS FOR THE FINANCIAL YEAR (076-077)	075	22.310.442	$-11.839.935$	12.364.147	$-21.927.962$
1. Profit for the financial year	076	22.310.442	$\Omega$	12.364.147	0
2. Loss for the financial year	077	0	11.839.935	$\Omega$	21.927.962
VII. MINORITY INTEREST	078	$\mathbf{0}$		$-693.731$	$-692.295$
B) PROVISIONS (080 to 082)	079	21.805.338	21.777.144	25.135.246	24.955.794
1. Provisions for pensions, severance pay and similar libabilities	080	3.154.198	2.994.544	6.418.406	6.107.968
2. Provisions for tax obligations	081	$\mathbf{0}$	$\theta$	$\mathbf{0}$	0
3. Other provisions	082	18.651.140	18.782.600	18.716.840	18.847.827
C) NON-CURRENT LIBILITIES (084 to 092)	083	385.196.802	387.854.593	371.535.796	383.180.712
1. Liabilites to related parties	084	10.352.893	10.404.730	$\mathbf{0}$	0
2. Liabilities for loans, deposits and other	085	$\Omega$	$\cup$	$\Omega$	$\mathbf 0$
3. Liabilities towards banks and other financial institutions	086	315.901.100	318.410.220	312.524.631	323.895.072
4. Amounts pay able for prepay ment	087	$\mathbf{0}$		$\mathbf{0}$	0
5. Trade pay ables	088	1.368.346	1.197.302	1.436.702	1.266.011
6. Amounts pay able for securities	089	42.339.770	42.607.648	42.339.771	42.607.648
7. Liabilities toward participating interests	090	$\mathbf{0}$	$\Omega$	$\mathbf{0}$	0
8. Other non-current liabilities	091	$\Omega$	$\Omega$	$\Omega$	$\Omega$
9. Deffered tax	092	15.234.693	15.234.693	15.234.693	15.411.982
D) CURRENT LIABILITIES (094 to 105)	093	560.049.768	553.882.039	670.695.124	645.371.906
1. Liabilites to related parties	094	17.988.054	15.094.220	$\mathbf{0}$	O
2. Liabilities for loans, deposits and other	095	$\mathbf 0$	$\overline{0}$	$\mathbf{0}$	$\overline{0}$
3. Liabilities towards banks and other financial institutions	096	114.921.873	110.666.983	151.030.116	136.736.297
4. Amounts pay able for prepay ment	097	65.434.782	71.830.517	70.871.547	80.039.823
5. Trade pay ables	098	216.931.837	219.995.969	277.140.562	265.784.948
6. Amounts pay able for securities	099	60.346.066	58.511.429	59.669.539	58.509.272
7. Liabilities toward participating interests	100	19.209	19.209	19.209	0
8. Liabilities to emloyees	101	32.487.397	32.880.800	54.717.065	55.792.390
9. Taxes, contributions and similar liabilities	102	35.189.353	29.783.048	40.568.227	34.139.406
10. Liabilities arising from share in the result	103	100.985	100.985	100.985	101.168
11. Liabilities arising from non-current assets held for sale	104	$\mathbf{0}$		$\mathbf 0$	0
12. Other current liabilities	105	16.630.212	14.998.879	16.577.875	14.268.602
E) ACCRUED EXPENSES AND DEFERRED INCOME	106	13.308.366	5.082.573	13.308.368	5.082.573
F) TOTAL LIABILITIES (062+079+083+093+106)	107	1.274.933.357	1.251.329.497	1.316.975.674	1.270.802.890
G) OFF-BALANCE SHEET ITEMS	108	609.258.038	643.597.226	663.985.533	695.568.279
ANNEX TO THE BALANCE SHEET (to be filled in by a company preparing the consolidated annual financial statement
A) CAPITAL AND RESERVES
1. Attributable to equity holders of the parent company's capital	109	$\boldsymbol{0}$	$\overline{0}$	236.994.871	212.904.199
2. Attributable to non-controlling interests	110	$\mathbf 0$	$\mathbf{0}$	$-693.731$	$-692.295$

IV. STATEMENT OF COMPREHENSIVE INCOME (unaudited)

Name of position	AOP	Previous period	Current period	Previous period	Current period
1	$\overline{2}$	3	$\overline{4}$	5	6
		DALEKOVOD J.S.C.		DALEKOVOD GROUP
I. OPERATING INCOME (112+113)	111	223.660.464	205.772.902	283.335.627	252.596.275
1. Sales revenue 2. Other operating income	112 113	212.879.153 10.781.311	198.068.259 7.704.643	273.729.799 9.605.829	241.546.259 11.050.016
II. OPERATING EXPENSES (115+116+120+124+125+126+129+130)	114	220.258.547	215.326.063	284.661.923	273.075.490
1. Changes in inventories of finished products and work in progress	115	9.033	10.464	$-5.348.456$	$-7.360.995$
2. Material costs (117 to 119)	116	159.284.604	129.981.326	198.225.480	163.743.764
a) Cost of raw materials & consumables	117	68.141.487	47.759.676	79.485.388	66.559.138
b) Cost of goods sold	118	42.031.402	25.103.734	60.658.919	32.891.335
c) Other costs	119	49.111.715	57.117.916	58.081.173	64.293.291
3. Staff costs (121 to 123) a) Net salaries	120 121	35.624.232 25.869.713	46.726.261 36.013.114	59.247.790 40.681.026	69.387.704 50.254.243
b) Employ ee income tax	122	6.157.761	6.792.699	11.954.244	11.938.985
c) Tax on pay roll	123	3.596.758	3.920.448	6.612.520	7.194.475
4. Depreciation and amortisation	124	8.584.077	8.462.649	10.793.991	10.783.275
5. Other expenditures	125	2.603.455	2.895.128	5.189.186	4.556.561
6. Value adjustment (127+128)	126	18.219	0	18.219	39.911
a) non-current assets (without financial assets)	127	18.219	$\mathbf 0$	18.219	39.911
b) current asssets (without financial assets)	128	$\mathbf 0$	$\overline{0}$	$\mathbf 0$
7. Provisions	129	$\Omega$	$\overline{0}$	O	45
8. Other operating expenses III. FINANCIAL INCOME (132 to 136)	130 131	14.134.927 951.110	27.250.235 6.262.604	16.535.712 4.546.230	31.925.226 7.126.398
1. Interest income, foreign exhange differences, dividends and other
financial	132	189.713	4.422.440	$\Omega$	0
income related to subsidiaries
2. Interest income, foreign exchange differences, dividends and other
financial	133	761.389	1.840.138	4.546.222	7.126.372
income related to third parties
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	$\mathbf 0$	$\mathbf 0$	$\mathbf 0$	$\mathbf 0$
5. Other financial income	136	8	26	$\mathsf{R}$	26
IV. FINANCIAL COSTS (138 to 141) 1. Interest, foreign exchange df if ferences and other expenses related to	137	8.849.789	8.549.378	8.735.292	8.562.340
subsidiaries	138	452.002	332.631	$\Omega$	$\overline{0}$
2. Interest, foreign exchange differences and other expenses related to
third parties	139	8.396.127	8.202.189	8.732.551	8.553.030
3. Unrealized loss (expenses) from the financial assets	140	$\mathbf{0}$	$\mathbf 0$	$\Omega$
4. Other financial expenses	141	1.660	14.558	2.741	9.310
V 1 SHARE OF INCOME OF ASSOCIATES	142	$\mathbf{0}$	0	582.736	$\bf{0}$
VI. SHARE OF LOSS OF ASSOCIATES	143	$\mathbf{0}$	$\bf{0}$	$\bf{0}$	$\bf{0}$
VII. EXTRAORDINARY - OTHER INCOME	144	$\mathbf{0}$	$\bf{0}$	$\mathbf{0}$	$\bf{0}$
VIII. EXTRAORDINARY - OTHER EXPENSES IX. TOTAL INCOME (111+131+142 + 144)	145 146	$\mathbf{0}$ 224.611.574	$\mathbf{0}$ 212.035.506	$\mathbf{0}$ 288.464.593	$\mathbf{0}$ 259.722.673
X. TOTAL EXPENSES (114+137+143 + 145)	147	229.108.336	223.875.441	293.397.215	281.637.830
XI. PROFIT OR LOSS BEFORE TAX (146-147)	148	-4.496.762	$-11.839.935$	$-4.932.621$	$-21.915.157$
1. Profit before tax (146-147)	149	0		n
2. Loss before tax (147-146)	150	4.496.762	11.839.935	4.932.621	21.915.157
XII. INCOME TAX EXPENSE	151	818.525		923.829	12.805
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151)	152	$-5.315.287$	$-11.839.935$	$-5.856.451$	$-21.927.962$
1. Profit for the period (149-151)	153
2. Loss for the period (151-148)	154	5.315.287	11.839.935	5.856.451	21.927.962
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	$\mathbf 0$	0	$-5.856.451$	$-21.927.962$
2. Attributable to non-controlling interests	156	$\mathbf 0$	$\overline{0}$	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	$-5.315.287$	$-11.839.935$	$-5.856.451$	$-21.927.962$
II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAX (159 to 165)	158	0	0	$-590.541$	$-2.162.709$
1. Exchange differences arising from foreign operations	159	0	$\mathbf 0$	$-590.541$	$-2.162.709$
2. Revaluation of non-current assets and intangible assets	160	$\mathbf{0}$	$\mathbf 0$	$\Omega$	0
3. Gains or loss available for sale investments	161	$\mathbf{0}$	$\mathbf 0$	$\mathbf 0$	0
4. Gains or loss on net movement on cash flow hedges	162	$\mathbf{0}$	$\mathbf 0$	$\mathbf 0$	$\pmb{0}$
5. Gains or loss on net investments hedge	163	0 $\mathbf 0$	0 $\mathbf 0$	$\mathbf 0$ $\mathbf 0$	0
6. Share of the other comprehensive income/loss of associates 7. Acturial gain / loss on post employ ment benefit obligations	164 165	$\mathbf 0$	$\mathbf 0$	$\mathbf 0$	$\mathbf 0$ $\pmb{0}$
III. TAX ON OTHER COMPREHENSIVE INCOME OF THE PERIOD	166	$\mathbf 0$	$\mathbf 0$	$\mathbf 0$	0
IV. NET OTHER COMPREHENSIVE INCOME OR LOSS FOR THE YEAR
$(158-166)$	167	$\mathbf 0$	0	$-590.541$	$-2.162.709$
V. TOTAL COMPREHENSIVE INCOME/LOSS FOR THE PERIOD	168	$-5.315.287$	$-11.839.935$	$-6.446.992$	$-24.090.671$
$(157+167)$
APPENDIX Statement of Comprehensive Income (to be filled in by entities submitting consolidated financial statemen
VI. TOTAL COMPREHENSIVE INCOME/LOSS FOR THE PERIOD
1. Attributable to owners of the company	169	$\mathbf 0$	0	$-6.442.390$	$-24.073.465$
2. Attributable to non-controlling interests	170	$\Omega$		$-4.601$	$-17.206$

Name of position:	AOP	Previous period	Current period	Previous period	Current period
$\mathbf{1}$	$\overline{2}$	3 1	$\overline{4}$	5 1	6
		DALEKOVOD jsc			DALEKOVOD GROUP
CASH FLOW FROM OPERATING ACTIVITIES
1. Pre-tax profit	001	$-4.496.762$	$-11.839.935$	$-4.932.621$	$-21.915.157$
2. Depreciation	002	8.584.077	8.462.649	10.793.991	10.783.275
3. Increase in short-term liabilities	003	55.041.075	170.298	55.774.308
4. Decrease in short-term receivables	004	$\Omega$		$\cap$	$\Omega$
5. Reduction of stocks	005	0	1.347.515	$\Omega$
6. Other increase in cash flow	006	$\Omega$		$\Omega$	12.240.529
I. Total increase in cash flow from operating activities (001 to 006)	007	59.128.390	$-1.859.473$	61.635.678	1.108.647
1. Decrease in short-term liabilities	008	$\Omega$			6.906.014
2. Increase in short-term receivables	009	24.477.119	17.256.124	10.676.876
3. Increase in stocks	010	10.522.073		21.637.369	11.633.623
4. Other decrease in cash flow	011	42.128.660	4.426.781	44.556.424	11.533.189
Il Total decrease in cash flow from operating activities (008 to 011)	012	77.127.852	21.682.905	76.870.670	30.072.826
A1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES	013	$\bf{0}$		$\Omega$
A2) NET DECREASE IN CASH FLOW FROM OPERATING ACTIVITIES	014	17.999.462	23.542.378	15.234.992	28.964.179
CASH FLOW FROM INVESTMENT ACTIVITIES
1. Cash receipts from sale of fixed tangible and intangible assets	015	$\Omega$	152.880	$\Omega$	152.880
2. Cash receipts from sale of treasury and debt financial instruments	016	$\overline{0}$		$\Omega$
3. Cash receipts from interests	017	$\mathbf 0$	166.994	$\mathbf{0}$	166.994
4. Cash receipts from dividends	018	$\overline{0}$	1.411.737	$\Omega$
5. Other cash receipts from investment activities	019	952.762	1.187.161	893.307	1.190.485
III. Total cash receipts from investment activities (015 to 019)	020	952.762	2.918.772	893.307	1.510.359
1. Expenditures for buying fixed assets and intangible assets	021	9.376.554	7.481.918	10.857.076	7.514.432
2. Expenditures for purchasing treasury and debt financial instruments	022	4.406.258			0
3. Other expenditures from investment activities	023		3.005.000
IV. Total expenditures from investment activities (021 to 023)	024	13.782.812	10.486.918	10.857.076	7.514.432
B1) NET INCREASE IN CASH FLOW FROM INVESTMENT ACTIVITIES	025
b2) NET DECREASE IN CASH FLOW FROM INVESTMENT ACTIVITIES	026	12.830.050	7.568.146	9.963.769	6.004.073
CASH FLOW FROM FINANCIAL ACTIVITIES
1. Cash receipts from issuance of treasury and debt financial	027	$\Omega$	$\mathbf 0$	$\Omega$
2. Cash receipts from loan principal, bonds, borrowings and other loans	028	2.306.278	$\overline{0}$	2.187.576	18.000.000
3. Total cash receipts from financial activities	029		$\Omega$
V. Total cash receipts from financial activities (027 to 029)	030	2.306.278	0	2.187.576	18.000.000
1. Expenditures for repayment of loan principal and bonds	031	5.456.165	5.706.342	5.317.292	20.336.816
2. Expenditures for payment of dividends	032	$\Omega$		$\Omega$	0
3. Expenditures for financial leasing	033	3.551.574	4.386.911	3.637.387	4.388.320
4. Expenditures for redemption of treasury shares	034	$\Omega$	$\Omega$
5. Other expenditures from financial activities	035	2.070.564		2.070.565	47.153
VI. Total expenditures from financial activities (031 to 035)	036	11.078.303	10.093.253	11.025.244	24.772.289
C1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES	037
C2) NET DECREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES	038	8.772.025	10.093.253	8.837.668	6.772.289
Total increase in cash flow (013 - 014 + 025 - 026 + 037 - 038)	039
Total decrease in cash flow $(014 - 013 + 026 - 025 + 038 - 037)$	040	39.601.537	41.203.777	34.036.429	41.740.541
Cash and cash equivalents at the beginning of the period	041	86.848.943	89.349.072	105.428.124	107.378.391
Increase in cash and cash equivalents	042
Decrease in cash and cash equivalents	043	39.601.537	41.203.777	34.036.429	41.740.541
Cash and cash equivalents at the end of the period	044	47.247.406	48.145.295	71.391.695	65.637.850

VI. STATEMENT OF CHANGES IN EQUITY (unaudited)

Name of position:	AOP	Previous period	Current period	Previous period	Current period
		DALEKOVOD jsc		DALEKOVOD GROUP
1. Share capital	001	247.193.050	247.193.050	247.193.050	247.193.050
2. Capital reserves	002	87.214.738	87.214.738	87.214.738	87.214.738
3. Reserves from profit	003	43.675.007	43.675.007	74.860.772	72.698.063
4. Retained profit or loss carried forw ard	004	$-175.222.643$	$-152.912.201$	$-254.040.325$	$-241.676.178$
5. Profit or loss of current year	005	22.310.442	$-11.839.935$	12.364.147	$-21.927.962$
6. Revaluation of longterm tangible assets	006	69.402.489	69.402.489	69.402.489	69.402.489
7. Revaluation of intangible assets	007
8. Revaluation of financial assets available for sale	008	0
9. Other revaluations	009	0
10. Total equity and reserves (AOP 001 to 009)	010	294.573.083	282.733.148	236.994.871	212.904.199
11. Foreign exchange differences arising from the titles of net investment in foreign operations	011	0	$\mathbf{0}$	$-721.078$	$-2.162.709$
12. Current and deferred taxes (part)	012	$\overline{0}$	$\Omega$	Ŋ
13. Cash flow protection	013	0	0
14. Changes in accounting policies	014	0
15. Correction of significant errors in the previous period	015	0
16. Other changes in equity	016	23.389.416	$-11.839.935$	13.442.669	$-21.927.963$
17. Total increase or decrease in equity (AOP 011 to 016)	017	23.389.416	$-11.839.935$	12.721.591	$-24.090.672$
17 a. Attributed to parent company equity holders	018	0		236.994.871	212.904.199
17 b. Attributed to minority interest	019	0	$\Omega$	$-693.731$	$-692.295$

1. BASIC INFORMATION

MANAGEMENT BOARD

Alen Premužak - Chairman of the Management Board Helena Jurčić Šestan - Management Board member Ivica Kranjčić - Management Board member Ivan Kurobasa - 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 Milan Račić - Supervisory Board member Marko Makek - Supervisory Board member Mirela Tomljanović Radović - Supervisory Board member Rajko Pavelić - Supervisory Board member

Dalekovod Dioničko društvo za inženjering, proizvodnju i izgradnju

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

2. SHAREHOLDERS STRUCTURE (on 31 March 2018):

Konsolidator d.o.o.	15,000,000
Domestic natural persons	4,715,592
Financial institutions	4,200,814
Others	704,058
Own shares	98,841
TOTAL	24,719,305

3. ACQUISITION AND MERGERS

There were no acquisitions or mergers in the first quarter of 2018.

4. UNCERTAINTY

There were no identified suspicious or disputable claims in the first quarter 2018 which would affect the continuity of business.

5. DESCRIPTION OF PRODUCTS AND SERVICES

Over time, Dalekovod d.d. specialized for the realisation of "turn-key" contracts in the following fields:

• electricity facilities, especially transmission lines between 0.4 and 750 kV
• transformer substations of all levels and voltages up to 500 kV
• air, underground and underwater cables up to 100 kV
• telecommunications facilities, all types of networks and antennas
• production of suspension and jointing equipment for all types of transmission lines and sub-stations between 0.4 and 750 kV
• manufacture and installation of all metal parts for roads, especially for road lighting, security barriers and traffic signals, tunnel lighting and traffic management
• · electrification of railroads and tramways

6. CHANGES IN ACCOUNTING POLICIES

There are no new accounting policies.