Dalekovod d.d.

Legal Proceedings Report • Nov 20, 2020

DALEKOVOD D.D.

REPORT ON THE IMPLEMENTATION OF FINANCIAL RESTRUCTURING

27th IMPLEMENTATION REPORT (Q3 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 30 September 2020.

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 30/06/2020 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 issuedand 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 the provisions of the 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.

RR) 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. Settelment 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 milllion was fully regulated.

PP) As of 15 November2020, Company and Group have due liabilities based on regular interest and principal of senior debt from pre-bankruptcy 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 - IX2020

Financial position report

Item	ADP code	Last day of the preceding business year	At the reporting date of the current period
1	2	3	4
AKTIVA
A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID	1	-	-
B) FIXED ASSETS (ADP 003+010+020+031+036)	2	395.850.703	325.170.369
I INTANGIBLE ASSETS (ADP 004 to 009)	3	6.056.676	5.125.863
II TANGIBLE ASSETS (ADP 011 to 019)	10	339.294.668	252.696.621
III FIXED FINANCIAL ASSETS (ADP 021 to 030)	20	13.734.197	9.573.415
IV RECEIVABLES (ADP 032 to 035)	31	36.765.161	57.774.471
V DEFERRED TAX ASSETS	36	-	-
C) CURRENT ASSETS (ADP 038+046+053+063)	37	547.440.651	569.361.593
I INVENTORIES (ADP 039 to 045)	38	85.247.917	69.546.286
II RECEIVABLES (ADP 047 to 052)	46	386.124.913	446.458.723
III CURRENT FINANCIAL ASSETS (ADP 054 to 062)	53	14.548.513	14.925.588
IV CASH AT BANK AND IN HAND	63	61.519.308	38.430.996
D ) PREPAID EXPENSES AND ACCRUED INCOME	64	3.341.230	11.957.954
E) TOTAL ASSETS (ADP 001+002+037+064)	65	946.632.584	906.489.916
OFF-BALANCE SHEET ITEMS	66	487.526.376	424.603.811
LIABILITIES			-
A) CAPITAL AND RESERVES (ADP 068 to 070+076+077+081+084+087)	67	82.514.227	63.617.108
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	75.245.324
IV REVALUATION RESERVES	76	40.706.979	40.706.979
V FAIR VALUE RESERVES (ADP 078 to 080)	77	-	-
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	(19.711.927)
VIII MINORITY (NON-CONTROLLING) INTEREST	87	-	-
B) PROVISIONS (ADP 089 to 094)	88	36.270.122	31.728.938
C) LONG-TERM LIABILITIES (ADP 096 to 106)	95	376.594.147	290.645.946
D) SHORT-TERM LIABILITIES (ADP 108 to 121)	107	437.706.563	475.434.106
E) ACCRUALS AND DEFERRED INCOME	122	13.547.524	45.063.818
F) TOTAL – LIABILITIES (ADP 067+088+095+107+122)	123	946.632.584	906.489.916
G) OFF-BALANCE SHEET ITEMS	124	487.526.376	424.603.811

Profit and loss report

Item	AOP code		Same period of the previous year	Current period
		Cumulative	Quarter	Cumulative	Quarter
$\mathbf{I}$	$\overline{2}$	$\overline{\mathbf{3}}$	$\overline{4}$	5	$\overline{6}$
I OPERATING INCOME (ADP 126 to 130)	125	850.747.963	314.269.753	944.228.838	360.180.059
2 Income from sales (outside group)	127	832.252.127	311.081.979	929.855.221	355,927.841
5 Other operating income (outside the group)	130	18.495.836	3.187.774	14.373.617	4.252.218
II OPERATING EXPENSES (ADP 132+133+137+141+142+143+146+153)	131	852.267.970	311.638.747	902.561.880	342.377.936
1 Changes in inventories of work in progress and finished goods	132	(6.686.979)	(1.619.379)	4.350.902	4.252.218
2 Material costs (ADP 134 to 136)	133	516.860.466	190.689.877	540.596.565	197.249.504
a) Costs of raw materials and consumables	134	173.665.653	69.879.993	245.057.677	78.519.787
b) Costs of goods sold	135	100.198.697	18.501.271	43.273.390	10.123.540
c) Other external costs	136	242.996.116	102.308.613	252.265.498	108.606.178
3 Staff costs (ADP 138 to 140)	137	221.452.623	81.540.573	232.453.341	91.803.104
a) Net salaries and wages	138	169.011.568	64.381.957	182.718.120	73.143.150
b) Tax and contributions from salary costs	139	32.501.846	10.728.329	28.808.441	10.157.621
c) Contributions on salaries	140	19.939.209	6.430.287	20.926.780	8.502.332
4 Depreciation	141	22.674.916	7.228.012	20.463.312	7.087.112
5 Other costs	142	17.389.964	6.548.033	18,122,331	7,206,669
6 Value adjustments (ADP 144+145)	143	÷.	$\sim$	163.141	(71.722)
b) current assets other than financial assets	145	i,	×	163.141	(71.722)
7 Provisions (ADP 147 to 152)	146	983.735	2.727	$\sim$	$\sim$
c) Provisions for ongoing legal cases	149	983.735	2.727	ä,	$\sim$
8 Other operating expenses	153	79.593.246	27.248.904	86.412.289	34.851.051
III FINANCIAL INCOME (ADP 155 to 164)	154	55.568.875	3.015.219	8.157.865	4.814.742
7 Other interest income	161	639.912	209.022	591.787	200 240
8 Exchange rate differences and other financial income	162	7,582,160	2806.197	7.270.225	4,507.908
10 Other financial income	164	47.346.803		295.854	106.595
IV FINANCIAL EXPENSES (ADP 166 to 172)	165	22.356.599	10.753.711	17.896.979	5.240.374
3 Interest expenses and similar expenses	168	9.425.537	3.210.317	6.301.884	(605.383)
4 Exchange rate differences and other expenses	169	10.281.499	4.893.831	11,595,095	5.845.757
7 Other financial expenses	172	2.649.563	2.649.563	G	÷
IX TOTAL INCOME (ADP $125 + 154 + 173 + 174$ )	177	906.316.838	317.284.972	952.386.704	364.994.801
TOTAL EXPENDITURE (ADP $131+165+175+176$ ) X	178	874.624.569	322.392.458	920.458.859	347.618.310
XI PRE-TAX PROFIT OR LOSS (ADP 177-178)	179	31.692.269	(5.107.487)	31.927.845	17.376.491
1 Pre-tax profit (ADP 177-178)	180	31.692.269		31,927,845	17.376.491
2 Pre-tax loss (ADP 178-177)	181	÷	(5.107.487)	×	×,
XII INCOME TAX	182	228.634	36.162	337.815	40.487
XIII PROFIT OR LOSS FOR THE PERIOD (ADP 179-182)	183	31.463.635	(5.143.649)	31.590.030	17.336.004
1 Profit for the period (ADP 179-182)	184	31.463.635	$\sim$	31,590,030	17,336,004
2 Loss for the period (ADP 182-179)	185	÷	(5.143.649)	×	$\bar{a}$
XIV PRE-TAX PROFIT OR LOSS OF DISCONTINUED OPERATIONS (ADP 187-1	186	(9.082.408)	(2.517.003)	(51.301.958)	(45.078.790)
2 Pre-tox loss on discontinued operations	188	9.082.408	2.517.003	51.301.958	45.078.790
2 Discontinued operations loss for the period (ADP 189-186)	9	(9.082.408)	(2.517.003)	(51.301.958)	(45.078.790)
XVI PRE-TAX PROFIT OR LOSS (ADP 179+186)	192	22.609.861	(7.624.490)	(19.374.112)	(25.564.906)
1 Pre-tox profit (ADP 192)	193	22.609.861	(7.624.490)
2 Pre-tox loss (ADP 192)	194	$\sim$	$\sim$	19.374.112	25.524.418
XVII INCOME TAX (ADP 182+189)	195	228.634	36.162	337.815	40.487
XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 192-195)	196	22.381.227	(7.660.652)	(9.848.930)	(25.564.906)
1 Profit for the period (ADP 192-195)	197	22.381.227
2 Loss for the period (ADP 195-192).	198	F	7.660.652	19.711.927	25.564.906
XIX PROFIT OR LOSS FOR THE PERIOD (ADP 200+201)	199	22.381.228	(7.660.652)	(19.711.927)	(25.564.906)
1 Attributable to owners of the parent	200	22,381,228	(7.660.652)	(19.711.927)	(25.564.906)
I PROFIT OR LOSS FOR THE PERIOD	202	22.381.228	(7.660.652)	(19.711.927)	(25.564.906)
II OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX (ADP 204 to 211)	203	(1.576.943)	236.055	814.807	657.763
I Exchange rate differences from translation of foreign operations	204	(1.576.943)	236.055	814.807	657.763
III TAX ON OTHER COMPREHENSIVE INCOME FOR THE PERIOD	212	$\sim$	$\bar{\sigma}$	$\overline{\phantom{a}}$	$\sim$
IV NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 203-212)	213	(1.576.943)	236.055	814.807	657.763
V COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 202+213) APPENDIX to the Statement on comprehensive income (to be filled in by undertakings that	214	20.804.285	(7.424.597) ÷	(18.897.120)	(24.907.143) i.
VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 216+217)	215	$\omega$ 20.804.285	(7.424.597)	(18.897.120)	(24.907.143)
	014	20 804 285

Regular stock DLKV-R-A included in the official market of the Zagreb Stock Exchange Issuing country of origin Croatia ISIN: HRDLKVRA0006, LEI: 74780000W0KHNRDW7I05

Notice in accordance with the capital market law 5

Cash flow report

Item	AOP code	Same period of the previous year	Current period
ı	$\overline{2}$	3	4
Cash flow from operating activities
1 Pre-tax profit	1	22.609.862	(19.711.927)
2 Adjustments (ADP 003 to 010):	$\overline{2}$	(31.694.742)	5.547.158
a) Depreciation	3	26.941.345	20.463.312
b) Gains and losses from sale and value adjustment of fixed tangible and intangible assets	4	(80.562)	÷
c) Gains and losses from sale and unrealised gains and losses and value adjustment of financial assets	5	(44.897.692)	4.019.578
d) Interest and dividend income	6	(722.969)	(887.641)
e) Interest expenses	7	(12.050.598)	6.843.730
f) Provisions	8	1.612.286
g) Exchange rate differences (unrealised)	9	(2.496.552)	5.096.830
I Cash flow increase or decrease before changes in working capital (ADP 001+002)	$\mathbf{1}$	(9.084.880)	(14.164.769)
3 Changes in the working capital (ADP 013 to 016)	12	(38.357.307)	8.139.062
a) Increase or decrease in short-term liabilities	13	9.257.764	(30.890.025)
b) Increase or decrease in short-term receivables	14	(82.051.513)	(66.769.490)
c) Increase or decrease in inventories	15	(3.338.074)	106.425.651
d) Other increase or decrease in working capital	16	37.774.516	(627.075)
II Cash from operations (ADP 011+012)	17	(47.442.187)	(6.025.707)
4 Interest paid	18	(7.481.546)	(2.626.338)
5 Income tax paid	19		(5.490.443)
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019)	20	(54.923.733)	(14.142.488)
I Cash receipts from sales of fixed tangible and intangible assets	21		3.101.764
2 Cash receipts from sales of financial instruments	22	108.702.713
3 Interest received	23	652.397	289
5 Cash receipts from repayment of loans and deposits	25	ä,	2.643.055
6 Other cash receipts from investment activities	26	349.536	4.600.098
III Total cash receipts from investment activities (ADP 021 to 026)	27	109.704.646	10.345.205
I Cash payments for the purchase of fixed tangible and intangible assets	28	(5.487.632)	(16.582.312)
3 Cash payments for loans and deposits for the period	30	(11.091.528)	(2.415.670)
IV Total cash payments from investment activities (ADP 028 to 032)	33	(16.579.160)	(18.997.982)
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033)	34	93.125.486	(8.652.776)
3 Cash receipts from credit principals, loans and other borrowings	37	24.830.780	10.211.721
V Total cash receipts from financing activities (ADP 035 to 038)	39	24.830.780	10.211.721
I Cash payments for the repayment of credit principals, loans and other borrowings and debt financial	40	(97.767.376)	(4.380.629)
2 Cash payments for dividends	41		(1.433.396)
3 Cash payments for finance lease	42	(6.458.483)	(4.286.764)
VI Total cash payments from financing activities (ADP 040 to 044)	45	(104.225.859)	(10.100.789)
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045)	46	(79.395.079)	110.932
D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP 020+034+046+047)	48	(41.193.326)	(22.684.333)
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	24.985.965	38.430.996

Report on changes in capital for the current period

								Attributable to owners of the parent
					Reserves	Treasury						Total	Minority
Item		Initial			for	shares and				Retained profit Profit/loss for		attributable to	$($ non-
		(subscribed)	Capital	Legal	treasury	holdings	Statutory		Revaluation	loss brought	the business	owners of the		controlling) Total capital
	AOP code	capital	reserves	reserves	shares	(deductible	reserves	Other reserves	reserves	forward	year	parent	interest	and reserves
											15	$+ 8$ do 15)	17	$18(16+17)$
Current period
I Balance on the first day of the current business year	27	247.193.050	86	11.652.410	8 4 6 5 9 5 0	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 27 to				11.652	8465950	8465 .950	32 188.407	30.589.700	40.706.979	(369.208.977)	3.250.989	82.514.228		82.514.228
5 Profit/loss of the period	31										(19.711.927)	(19.711.927)		(19.711.927)
6 Exchange rate differences from translation of foreign operations	32							814.807				814.807		814.807
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 (A					8.465.950		8.465.950 32.188.407	31.404.507	40.706.979	(365.957.988)	(19.711.927)	63.617.108		63.617.108
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						$\sim$	814,807			$\sim$	814.807		814,807
II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP 31+5)	51						$\sim$	814.807		$\sim$	(19.711.927)	18.897.120		(18.897.120)
III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED DII	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 for treasury shares	Treasury shares and holdings deductible item)	Statutory reserves	Other reserves	Revaluation reserves	Retained profit / loss brought forward	business year	Total attributable Profit/loss for the to owners of the parent	Minority (non- controlling) interest	Total capital and reserves
										14	15	16 (3 do 6 - 7 $+ 8$ do 15)	17	$18(16+17)$
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
4 Balance on the first day of the previous business year (restated) (ADP 01		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													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		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 TAX	24							(1.661.448)				(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 RECOGNISED	26	$\sim$	(2.094.310)		$\sim$					(119.570.198)	119.570.198	(2.094.310)		(2.094.310)

Company financial report for I-IX 2020 period

Financial position report

Item	ADP code	Last day of the preceding business year	At the reporting date of the current period
	$\overline{2}$	$\overline{\mathbf{3}}$	4
AKTIVA
A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID
B) FIXED ASSETS (ADP $003+010+020+031+036$ )	$\overline{2}$	421.035.334	349.876.619
I INTANGIBLE ASSETS (ADP 004 to 009)	3	4.173.237	3.223.273
II TANGIBLE ASSETS (ADP 011 to 019)	10	313.343.368	230.840.307
III FIXED FINANCIAL ASSETS (ADP 021 to 030)	20	66.888.987	58.038.568
IV RECEIVABLES (ADP 032 to 035)	31	36.629.742	57.774.471
V DEFERRED TAX ASSETS	36	×	٠
C) CURRENT ASSETS (ADP $038 + 046 + 053 + 063$ )	37	395.086.035	451.730.635
I INVENTORIES (ADP 039 to 045)	38	6.345.879	7.917.752
II RECEIVABLES (ADP 047 to 052)	46	322.077.130	396.459.458
III CURRENT FINANCIAL ASSETS (ADP 054 to 062)	53	17.109.884	17.082.786
IV CASH AT BANK AND IN HAND	63	49.553.142	30.270.639
D ) PREPAID EXPENSES AND ACCRUED INCOME	64	2.400.906	11.450.731
E) TOTAL ASSETS (ADP $001+002+037+064$ )	65	818.522.275	813.057.985
OFF-BALANCE SHEET ITEMS	66	356.786.379	410.636.491
LIABILITIES
A) CAPITAL AND RESERVES (ADP 068 to $070+076+077+081+084+087$ )	67	29.619.554	17.811.007
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	$\sim$	$\mathbf{r}$
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	(11.808.547)
VIII MINORITY (NON-CONTROLLING) INTEREST	87
B) PROVISIONS (ADP 089 to 094)	88	31.468.170	27.371.592
C) LONG-TERM LIABILITIES (ADP 096 to 106)	95	384.850.490	300.507.187
D) SHORT-TERM LIABILITIES (ADP 108 to 121)	107	358.650.576	432.218.570
E) ACCRUALS AND DEFERRED INCOME	122	13.933.485	35.149.629
F) TOTAL - LIABILITIES (ADP $067+088+095+107+122$ )	123	818.522.275	813.057.985
G) OFF-BALANCE SHEET ITEMS	124	356.786.379	410.636.491

Profit and loss report

	AOP	Same period of the previous year		Current period
Item	code	Cumulative	Quarter	Cumulative	Quarter
1	2	3	4	5	6
I OPERATING INCOME (ADP 126 to 130)	125	665.967.903	249.927.722	798.352.899	309.352.682
1 Income from sales with undertakings within the group	126	24.401.994	788.162	8.435.258	251.680
2 Income from sales (outside group)	127	619.514.753	244.107.489	774.135.413	305.151.815
4 Other operating income with undertakings within the group	129	11.503.832	3.327.617	12.875.237	3.279.480
5 Other operating income (outside the group)	130	10.547.324	1.704.454	2.906.991	669.707
II OPERATING EXPENSES (ADP 132+133+137+141+142+143+146+153)	131	652.768.809	243.815.073	757.887.368	297.090.188
2 Material costs (ADP 134 to 136)	133	394.678.493	149.356.469	473.516.854	183.016.594
a) Costs of raw materials and consumables	134	146.312.142	62.120.209	233.726.690	80.063.083
b) Costs of goods sold	135	46.772.539	5.596.492	8.704.558	3.833.377
c) Other external costs 3 Staff costs (ADP 138 to 140)	136 137	201.593.812 164.970.439	81.639.768 62.664.528	231.085.606 184.604.996	99.120.134 75.778.995
a) Net salaries and wages	138	133.466.446	52.539.548	152.778.031	63.112.919
b) Tax and contributions from salary costs	139	19.919.874	6.468.713	17.905.764	6.313.264
c) Contributions on salaries	140	11.584.119	3.656.267	13.921.201	6.352.812
4 Depreciation	141	16.668.548	5.135.905	16.835.585	5.870.285
5 Other costs	142	9.752.740	3.438.387	12.386.108	4.495.668
6 Value adjustments (ADP 144+145)	143	-	-	179.437	(70.625)
b) current assets other than financial assets	145	-	-	179.437	(70.625)
7 Provisions (ADP 147 to 152)	146	1.612.286	-	-	-
c) Provisions for ongoing legal cases	149	1.612.286	-	-	-
8 Other operating expenses	153	65.086.303	23.219.784	70.364.388	27.999.271
III FINANCIAL INCOME (ADP 155 to 164)	154	44.768.222	1.252.968	11.952.786	2.574.360
1 Income from investments in holdings (shares) of undertakings within the group	155	2.315.249	-	4.434.730	-
4 Other interest income from operations with undertakings within the group	158	782.297	360.420	255.648	47.084
7 Other interest income	161	916.386	329.258	691.154	230.584
8 Exchange rate differences and other financial income	162	3.126.232	562.852	6.571.254	2.296.692
9 Unrealised gains (income) from financial assets	163	438	438	-	-
10 Other financial income	164	37.627.620	-	-	-
IV FINANCIAL EXPENSES (ADP 166 to 172)	165	15.670.129	6.095.022	16.507.680	2.367.765
1 Interest expenses and similar expenses with undertakings within the group	166	284.837	54.218	179.063	76.942
2 Exchange rate differences and other expenses from operations with undertakings within the group	167	144.629	49.171	141.251	47.949
3 Interest expenses and similar expenses	168	7.594.495	2.494.235	4.471.901	(171.842)
4 Exchange rate differences and other expenses	169	7.646.168	3.497.398	11.715.465	2.414.716
IX TOTAL INCOME (ADP 125+154+173 + 174) X TOTAL EXPENDITURE (ADP 131+165+175 + 176)	177 178	710.736.125 668.438.938	251.180.690 249.910.094	810.305.685 774.395.048	311.927.042 299.457.953
XI PRE-TAX PROFIT OR LOSS (ADP 177-178)	179	42.297.187	1.270.596	35.910.637	12.469.089
1 Pre-tax profit (ADP 177-178)	180	42.297.187	1.270.596	35.910.637	12.469.089
XII INCOME TAX	182	-	-	-	-
XIII PROFIT OR LOSS FOR THE PERIOD (ADP 179-182)	183	42.297.187	1.270.596	35.910.637	12.469.089
1 Profit for the period (ADP 179-182)	184	42.297.187	1.270.596	35.910.637	12.469.089
XIV PRE-TAX PROFIT OR LOSS OF DISCONTINUED OPERATIONS (ADP 187-188)	186	(6.518.695)	(2.178.045)	(47.719.184)	(44.693.250)
2 Pre-tax loss on discontinued operations	188	6.518.695	2.178.045	47.719.184	44.693.250
2 Discontinued operations loss for the period (ADP 189-186)	191	6.518.695	2.178.045	47.719.184	44.693.250
XVI PRE-TAX PROFIT OR LOSS (ADP 179+186)	192	35.778.492	(907.449)	(11.808.547)	(32.224.161)
1 Pre-tax profit (ADP 192)	193	35.778.492	-	-	-
2 Pre-tax loss (ADP 192)	194	-	907.449	11.808.547	32.224.161
XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 192-195)	196	35.778.492	(907.449)	(11.808.547)	(32.224.161)
1 Profit for the period (ADP 192-195)	197	35.778.492	-	-	-
2 Loss for the period (ADP 195-192)	198	-	907.449	11.808.547	32.224.161
XIX PROFIT OR LOSS FOR THE PERIOD (ADP 200+201)	199	-	-	-	-
1 Attributable to owners of the parent	200	-	-	-	-
STATEMENT OF OTHER COMPRHENSIVE INCOME (to be filled in by undertakings subject to IFRS)
I PROFIT OR LOSS FOR THE PERIOD	202	35.778.492	(907.449)	(11.808.547)	(32.224.161)
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) V COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 202+213)	213 214	- 35.778.492	- (907.449)	- (11.808.547)	- (32.224.161)
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

		Same period of
Item		the previous
	AOP code	year	Current period
ı	$\overline{2}$	$\overline{\mathbf{3}}$	4
1 Pre-tax profit		35.778.492	(11.808.547)
2 Adjustments (ADP 003 to 010):	$\overline{2}$	(14.027.352)	70.691.855
a) Depreciation	3	16.668.548	16.835.585
c) Gains and losses from sale and unrealised gains and losses and value		(38.152.410)	1.770.824
adjustment of financial assets	5
d) Interest and dividend income	6	(4.013.932)	(5.381.532)
e) Interest expenses	7	7.790.231	4.650.964
f) Provisions	8	(197.022)
g) Exchange rate differences (unrealised)	9	(2.641.462)	5.096.830
h) Other adjustments for non-cash transactions and unrealised gains and losses	10	6.518.695	47.719.184
I Cash flow increase or decrease before changes in working capital (AI	11	21.751.140	58.883.308
3 Changes in the working capital (ADP 013 to 016)	12	(72.445.652)	(72.525.066)
a) Increase or decrease in short-term liabilities	13	10.817.895	11.409.013
b) Increase or decrease in short-term receivables	14	(121.972.723)	(81.176.852)
c) Increase or decrease in inventories	15	1.938.230	(1.356.956)
d) Other increase or decrease in working capital	16	36.770.946	(1.400.271)
II Cash from operations (ADP 011+012)	17	(50.694.512)	(13.641.758)
4 Interest paid	18	(6.873.655)	(2.218.012)
5 Income tax paid	19		(5.305.418)
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019)	20	(57.568.167)	(21.165.188)
1 Cash receipts from sales of fixed tangible and intangible assets	21		3.016.045
2 Cash receipts from sales of financial instruments	22	108.702.713	20.008
3 Interest received	23	1.022.942	37.431
4 Dividends received	24	1.403.330	4.434.730
5 Cash receipts from repayment of loans and deposits	25	10.890.154	4.807.068
6 Other cash receipts from investment activities	26		4.600.098
III Total cash receipts from investment activities (ADP 021 to 026)	27	122.019.139	16.915.380
1 Cash payments for the purchase of fixed tangible and intangible assets	28	(12.557.478)	(15.019.527)
3 Cash payments for loans and deposits for the period	30	(15.470.903)	(1.305.000)
4 Acquisition of a subsidiary, net of cash acquired	31	(20.000)	(20.000)
IV Total cash payments from investment activities (ADP 028 to 032)	33	(28.048.381)	(16.344.527)
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033)	34	93.970.758	570.853
3 Cash receipts from credit principals, loans and other borrowings	37	24.830.780	10.409.721
V Total cash receipts from financing activities (ADP 035 to 038)	39	24.830.780	10.409.721
1 Cash payments for the repayment of credit principals, loans and other borrowir	40	(89.107.576)	(4.980.541)
3 Cash payments for finance lease	42	(6.285.662)	(4.117.348)
VI Total cash payments from financing activities (ADP 040 to 044)	45	(95.393.238)	(9.097.889)
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045)	46	(70.562.458)	1.311.832
D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP 020+034+046+1	48	(34.159.867)	(19.282.503)
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	49	51.076.527	49.553.142
F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD(ADP 048-	50	16.916.660	30.270.639

Report on changes in capital for the current period

		Attributable to owners of the parent
						shares and					Total
Item		Initial			Reserves for	holdings			Retained profit /		attributable to
		(subscribed)	Capital	Legal	treasury	(deductible	Statutory	Revaluation	loss brought	Profit/loss for	owners of the	Total capital and
	AOP code	capital	reserves	reserves	shares	item)	reserves	reserves	forward	the business year	parent	reserves
										15	$+ 8$ do 15)	$18(16+17)$
Current period
1 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 27 to	30	247.193.050	86.141.			.950 8.465	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									(11.808.547)	(11.808.547)	(11.808.547)
20 Other distribution to owners	46								5.800.749	(5.800.749)
23 Balance on the last day of the current business year reporting period (A	49				8.465.950	8.465.950	32.188.407	40.706.979	(388.097.152)	(11.808.547)	34.742.907	17.811.007
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
II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP 31+5)	51									(11.808.547)	(11.808.547)	11.808.547
III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED DIF	52							$\frac{1}{2}$	5.800.749	(5.800.749)		$\sim$

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 for treasury shares	Treasury shares and holdings (deductible item)	Statutory 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
								10	14	15	16 (3 do 6 - 7 $+ 8$ do 15)	$18(16+17)$
Previous period
I 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 01	4	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	20		(2.094.310)								(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	11.486.600	8.465.950	8.465.950	32.188.407	40.706.979	(160.874.981)	(227.222.171)	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)
I OTHER COMPREHENSIVE INCOME OF THE PREVIOUS PERIOD, NET OF TAX	24
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 RECOGNISED	26		(2.094.310)		$\sim$		$\sim$	$\sim$	$\sim$	$\sim$	(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