Dalekovod d.d. — Management Reports 2013

May 8, 2013

Dalekovod d.d. Marijana Čavića 4 10 000 Zagreb

Management Report for Jan-Mar 2013

Unaudited, nonconsolidated

Zagreb, 30 April 2013

TABLE OF CONTENTS:

• $\mathbf{I}$ . MANAGEMENT REPORT
• Ш. DECLARATION
• BALANCE SHEET $III.$
• COMPREHENSIVE INCOME STATEMENT IV.
• CASH FLOW STATEMENT V.
• STATEMENT OF CHANGES IN EQUITY VI.
• NOTES TO FINANCIAL STATEMENTS VII.

I. MANAGEMENT REPORT

Dalekovod Grupa ("Group") in the first quarter of 2013 realized the operating income of HRK 256 million, operating earnings before depreciation (EBITDA) of HRK 20.4 mil., and net earnings of HRK 10.2 mil. In the same period, Dalekovod d.d. ("Company") realized operating income of HRK 172 mil., operating earnings before depreciation (EBITDA) of HRK 15 mil., and net earnings of HRK 0.4 mil.

The Company's operation in the first quarter is usually weaker than in relation to other reporting periods during a business year primarily due to aggravated climatic conditions and consequential deceleration of the projects' realization. Despite expectedly weaker sales realized in the first quarter of this year, the Management Board points out positive steps in the Company's and the Group's operation:

• The Group's EBITDA was HRK 20.4 mil., which represents the reduction in relation to Q1 2012 when EBITDA was HRK 21.1 mil. The Company's EBITDA was HRK 15 mil., which represents the improvement in relation to Q1 2012 when EBITDA was HRK 10.5 mil.
• The Company achieved the settlement with the creditors in the pre-bankruptcy settlement proceedings, at the court hearing on 2 April 2013 before the Settlement Council of the Financial Agency (FINA)
• In compliance with the Act on Financial Operations and Pre-Bankruptcy Settlement, the Company had significantly lower financial expenditure, which has affected the positive net result
• Intensification of the Group's restructuring process

By changing the Company's and Group's strategy that primarily includes a stronger focus on international markets, the Company and its management are aware that it is crucial to continue the further optimization of fixed expenses, so that the Company could adjust to newly established environment of reduced demand on the domicile market and adjust for a more significant step forward on international markets.

In the past period, the Company invested great efforts to obtain projects on international markets, the projects that would mostly be realized during this and the following business years. In addition, the Company has been carrying out the projects in Norway, Ukraine and Slovenia. Furthermore, the Group and the Company have participated in a series of tenders within the country and abroad in order to contract new works and realize a plan of mild income growth in the following years.

It needs to be pointed out that the Company has undertaken activities to position itself and act for the first time on individual markets of Western Europe, on which the process of pre-qualification for the works performance is underway or has already finished. Owing to the Company's strong international activity, it can be expected that new significant deals abroad are to be obtained, about which the shareholders will be promptly informed by the Company.

For the Company's Management Board:

$II.$ DECLARATION

Pursuant to Article 410, paragraph 2, and Article 407, paragraph 2, subparagraph 3, and paragraph 3 of the Capital Market Act, the persons responsible for preparing the Report: Matjaž Gorjup - Chairman of the Management Board, Krešimir Anušić - Management Board member, Marko Jurković - Management Board member, Željko Lekšić - Management Board member, and Goran Brajdić - Management Board member, hereby issue this

DECLARATION

To the best of our knowledge, the summary set of financial statements for DALEKOVOD and the Group, prepared in compliance with the appropriate financial reporting standards, provides a complete and true view of the assets and liabilities and business results of DALEKOVOD and the Group, with a brief comment on the causes of the stated information. The financial statements have not been audited.

Matjaž Gorjup Chairman of the Management Board, Dalekovod d.d., signed REGISTER

For the Management Board:

III. BALANCE SHEET

Name of position:	AOP	31.12.2012	31.3.2013	31.12.2012	31.3.2013
			DALEKOVOD jsc	DALEKOVOD GROUP
$\blacksquare$	$\overline{2}$	$\overline{\mathbf{3}}$	$\overline{4}$	5 5	6
ASSETS
A) SUBSCRIBED CAPITAL UNPAID	001	$\mathbf{0}$		$\mathbf{O}$	$\bf{0}$
B) NON CURRENT ASSETS (003+010+020+029+033)	002		1.064.050.281 1.057.300.782		1.250.356.801 1.253.312.703
I. INTANGIBLE ASSETS (004 do 009)	003	10.369.957	9.282.833	16.532.284	15.025.449
1. Research & Development expenditure	004	$\overline{0}$ 10.356.357	$\Omega$	$\overline{O}$ 12.476.778	$\Omega$
2. Patents, licences, roy alties, trade marks, software&similar rights 3. Goodwill	005 006	$\bf{0}$	9.282.833 $\overline{0}$	3.747.741	11.188.598 3.563.542
4. Prepay ments for intangible assets	007	$\overline{0}$	$\overline{0}$	$\overline{O}$	$\bf{0}$
5. Intangible assets under construction	008	13.600	$\overline{0}$	13.600	$\overline{0}$
6. Other intangible assets	009	$\Omega$	$\overline{0}$	294.165	273.309
II. TANGIBLE ASSETS (011 do 019)	010	542,590.087	536.365.463	1.037.756.805	1.033.115.310
1. Land	011	164.913.887	164.913.887	212.852.569	212.907.483
2. Property	012	67.252.692	66.549.238	116.142.676	114.211.127
3. Plants and equipment	013	81.475.067	78.860.002	139,892,802	137.592.288
4. Tools, plants&vehicles	014	8,175.967	7.198.486	16.523.933	16.057.033
5. Biological asset	015	$\bf{0}$	$\mathbf{0}$	$\bf{0}$
6. Prepay ments for tangible assets	016	$\overline{0}$	$\overline{0}$	118.952	121.124
7. Assets under construction	017	$\mathbf{0}$	$\mathbf{O}$	331.061.066	332.987.933
8. Other tangible assets	018	$\overline{0}$	$\Omega$	14.224	14.301
9. Investments property	019	220.772.474	218.843.850	221.150.585	219.224.021
III. NON-CURRENT FINANCIAL ASSETS (021 do 028)	020	511.090.237	511.652.486	196.067.712	205.171.943
1. Share in related parties	021	442.622.639	442.678.763	89.509.413	98.148.978
2. Loans to related parties	022	1.384.622	1.384.622	1.384.622	1.384.622
3. Participating interests (stakes)	023	26.436.656 $\overline{0}$	26.436.656 $\Omega$	51.296.172 $\overline{0}$	51.291.951
4. Loans to participating interest	024 025	36,590.140	36.590.140	36.590.140	$\mathbf{0}$ 36.590.140
5. Investments in securities 6. Loans & deposits	026	4.056.180	4.562.305	5.665,420	6.129.158
7. Other non-current financial assets	027	$\bf{0}$	$\mathbf{O}$	11.621.945	11.627.095
8. Investment accounted by equity method	028	$\overline{0}$	$\overline{0}$	$\overline{0}$	$\mathbf{0}$
IV. TRADE RECEIVABLES (030 do 032)	029	0	$\bf{0}$	$\bf{0}$	0
1. Receivables from related parties	030	$\bf{0}$	$\overline{0}$	$\overline{0}$	$\overline{0}$
2. Receivables from credit sales	031	$\overline{0}$	$\overline{0}$	$\overline{0}$	$\bf{0}$
3. Other receivables	032	$\overline{0}$	$\overline{0}$	$\mathbf{0}$	$\overline{0}$
V. DEFERRED TAX ASSETS	033	$\overline{0}$	$\bf{0}$	$\bf{0}$	$\mathbf{0}$
C) CURENT ASSETS (035+043+050+058)	034	444.850.433	488.935.814	693.563.119	742.937.203
I. INVENTORIES (036 do 042)	035	10.339.440	9.483.163	153.387.398	157.650.809
1. Raw materials & consumables	036	8.147.751	7.447.892	58.981.669	58.517.490
2. Work in progress	037	$\overline{0}$	$\mathbf{0}$	32.799.672	33.550.395
3. Products	038	2.145.149	1.988.731	43.776.567	52.881.548
4. Merchandise	039	46.540	46.540	17.436.387	12.455.611
5. Prepay ments for inventories	040	$\bf{0}$	$\mathbf{0}$	273.960	126.614
6. Other available-for-sale assets	041	$\overline{0}$	$\bf{0}$	119.142	119,150
7. Biological asset	042	$\overline{0}$	$\theta$	$\bf{0}$	$\mathbf{0}$
II. RECEIVABLES (044 do 049)	043		347.913.960 373.788.219	496.478.416 $\overline{0}$	547.378.305 $\overline{0}$
1. Receivables from related parties 2. Trade receivables	044 045	51.926.978 264.682.910	33.777.310 283.323.751	430.368.810	441.022.134
3. Receivables from participating parties	046	494.108	494.108	1.045.495	1.045.495
4. Amounts receivable from employees	047	506.898	417.822	602.781	530,200
5. Receivables from government agencies	048	$\mathbf 0$	$\circ$	992.812	9.360.966
6. Other receivables	049	30.303.066	55.775.228	63.468.518	95.419.511
III. CURRENT FINANCIAL ASSETS (051 do 057)	050	76.905.215	95.107.847	22.543.746	14.731.925
1. Share in related parties	051		$\mathbf{O}$		$\overline{0}$
2. Loans to related parties	052	75.925.385	93.468.339	$\overline{0}$	$\overline{0}$
3. Participating interests (stakes)	053		$\circ$		$\circ$
4. Loans to participating interest	054	334.261	327.567	334.261	327.564
5. Investments in securities	055	28.074	79.137	12.664.008	12.715.071
6. Loans & deposits	056	617.495	1,232.804	9.184.611	1.232.804
7. Other financial assets	057	$\bf{0}$	$\circ$	360.866	456.486
IV. CASH ON HAND AND IN THE BANK	058	9.691.818	10.556.585	21.153.560	23.176.164
D) PREPAYMENTS AND ACCRUED INCOME	059	2.951.921	1.808.850	5.600.231	5.457.415
E) TOTAL ASSETS (001+002+034+059)	060		1.511.852.635 1.548.045.446		1.949.520.152 2.001.707.321
F) OFF-BALANCE SHEET ITEMS	061		1.091.563.126 1.092.235.860		1.756.703.665 1.601.739.838

EQUITY AND LIABILITIES
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	152.282.296	152.706.126	205.360.871	215.797.829
I. SHARE CAPITAL	063	286.726.500	286.726.500	286.726.500	286.726.500
II. CAPITAL RESERVES	064	80.478.889	80.478.889	80,478.889	80.478.889
III. RESERVES FROM PROFIT (066+067-068+069+070)	065	157.131.299	157.131.299	159.812.812	159.829.257
1. Legal reserves	066	11.486.600	11.486.600	12.590.761	12.608.828
2. Reserves for own shares	067	7.773.071	7.773.071	7.773.071	7.773.071
3. Own shares and stakes (less)	068	7.773.071	7.773.071	7.773.071	7.773.071
4. Statutory reserves	069	32.881.286	32.881.286	32.968.806	32.927.068
5. Other reserves	070	112.763.413	112.763.413	114.253.245	114.293.360
IV. REVALUATION RESERVES	071	50.020.716	50.020.716	58.530.455	58.681.662
V. RETAINED EARNINGS OR LOSS BROUGHT FORWARD (073-074)	072	$\overline{0}$	$-422.075.107$	22.621.219	-382.785.728
1. Retained earnings	073	$\overline{\mathfrak{o}}$	0	32.136.293	60.198.831
2. Loss brought forward	074	$\overline{0}$	422.075.107	9.515.074	442.984.558
VI. PROFIT OR LOSS FOR THE FINANCIAL YEAR (076-077)	075	$-422.075.108$	423.829	-405.406.946	10.436.958
1. Profit for the financial year	076	$\overline{0}$	423.829	$\overline{0}$	10.436.958
2. Loss for the financial year	077	422.075.108	$\circ$	405.406.946	$\Omega$
VII. MINORITY INTEREST	078	$\bf{0}$	$\mathbf{0}$	2.597.942	2.430.290
B) PROVISIONS (080 do 082)	079	7.327.727	7.327.727	12.209.787	11.877.708
1. Provisions for pensions, severance pay and similar libabilities	080	7.327.727	7.327.727	10.637.363	10.512.380
2. Provisions for tax obligations	081	$\mathbf 0$	$\mathbf{0}$	874.714	575.187
3. Other provisions	082	$\overline{0}$	$\overline{0}$	697.710	790.141
C) NON-CURRENT LIBILITIES (084 do 092)	083	475.194.193	463.017.167	723.058.559	711.592.805
1. Liabilites to related parties	084	$\mathbf 0$	$\circ$	0	$\mathbf 0$
2. Liabilities for loans, deposits and other	085	$\overline{0}$	$\Omega$	$\overline{0}$	648.893
3. Liabilities towards banks and other financial institutions	086	334.650.265	322.774.366	582.066.618	569.841.973
4. Amounts pay able for prepay ment	087	$\overline{0}$	$\Omega$	$\overline{0}$	$\mathbf 0$
5. Trade pay ables	088	140.543.928	140.242.801	140.991.941	141.101.940
6. Amounts pay able for securities	089	$\overline{0}$	0	$\mathbf 0$	0
7. Liabilities toward participating interests	090	$\overline{\mathfrak{o}}$	$\overline{0}$	$\overline{0}$	$\mathbf 0$
8. Other non-current liabilities	091	$\overline{\mathbf{0}}$	$\overline{0}$	$\overline{0}$	$\mathbf 0$
9. Deffered tax	092	$\overline{\mathbf{0}}$	$\overline{0}$	$\overline{0}$	$\mathbf 0$
D) CURRENT LIABILITIES (094 do 105)	093	877.048.419	924.994.426		997.193.576 1.050.812.567
1. Liabilites to related parties	094	95.985.029	119.788.771	$\overline{0}$	0
2. Liabilities for loans, deposits and other	095	7.086.640	8.080.823	7.708.077	10.390.927
3. Liabilities towards banks and other financial institutions	096	308.082.205	309.049.338	351.722.640	352.637.343
4. Amounts pay able for prepayment	097	31.858.753	34.168.389	34.247.399	39.319.194
5. Trade pay ables	098	338.410.290	367.076.608	475.117.526	524.126.692
6. Amounts pay able for securities	099	57.670.915	57.783.767	57.670.915	57.783.767
7. Liabilities toward participating interests	100	6.464.836	3.856.425	6.464.836	3.856.425
8. Liabilities to emloyees	101	9.976.064	5.504.624	19.343.640	14.347.539
9. Taxes, contributions and similar liabilities	102	12.454.073	11.087.371	31.490.622	34.098.005
10. Liabilities arising from share in the result	103	1.899.762	1.899.762	1.899.762	1.899.762
11. Liabilities arising from non-current assets held for sale	104	$\Omega$	$\overline{0}$	$\Omega$	$\Omega$
12. Other current liabilities	105	7.159.852	6.698.548		12.352.914
				11.528.158
E) ACCRUED EXPENSES AND DEFERRED INCOME	106	$\overline{0}$	$\overline{0}$	11.697.360	11.626.412
F) TOTAL LIABILITIES (062+079+083+093+106)	107		1.511.852.635 1.548.045.446		1.949.520.152 2.001.707.321
G) OFF-BALANCE SHEET ITEMS	108		1.091.563.126 1.092.235.860		1.756.703.665 1.601.739.839
ANNEX TO THE BALANCE SHEET (to be filled in by a company preparing the consolidated annual financial statements)				$\mathbf{0}$	$\mathbf{0}$
A) CAPITAL AND RESERVES
1. Attributable to equity holders of the parent company's capital	109			202.762.930	213.367.539
2. Attributable to non-controlling interests	110			2.597.942	2.430.290

IV. COMPREHENSIVE INCOME STATEMENT

ITEM	AOP	Q1 2012	Q1 2013	Q1 2012	Q1 2013
1	$\overline{2}$	$\overline{\mathbf{3}}$	$\overline{4}$	5	$\bullet$
			DALEKOVOD J.S.C.		DALEKOVOD GROUP
I. OPERATING INCOME (112+113) 1. Sales revenue	111	183.644.878	171.960.345	272.872.874	255.934.684
2. Other operating income	112 113	183.058.383 586.495	165.416.110	270.799.188	248.545.987
II. OPERATING EXPENSES (115+116+120+124+125+126+129+130)	114	182.959.914	6.544.235 166.994.000	2.073.686 264.268.186	7.388.697
1. Changes in inventories of finished products and work in progress	115	484.954	156,273	8.276.970	248.343.308 $-9.674.108$
2. Material costs (117 do 119)	116	132.262.436	113.590.140	171.851.584	172.022.354
a) Cost of raw materials & consumables	117	24.584.062	30.613.779	37.933.721	49.997.947
b) Cost of goods sold	118	32.528.133	19.118.332	45.488.120	29.199.028
c) Other costs	119	75.150.241	63.858.029	88.429.743	92.825.379
3. Staff costs (121 do 123) a) Net salaries	120	22.930.585	27.809.104	47.042.058	50.848.326
b) Employee income tax	121	13.892.631	17.938.046	28.404.427	32.132.572
c) Tax on pay roll	122 123	5.602.961	5.728.443	11.985.843	11.834.686
4. Depreciation and amortisation	124	3.434.993 9.780.190	4.142.615 8.774.600	6.651.788 12.525.801	6.881.069
6. Other expenditures	125	16.891.928	15.069.060	23.636.051	11.482.124
6. Value adjustment (127+128)	126	$\bf{0}$	$\bf{0}$	0	21.786.987 $\circ$
a) non-current assets (without financial assets)	127	$\Omega$	$\mathbf 0$	$\mathbf{C}$	$\overline{0}$
b) current asssets (without financial assets)	128	$\Omega$	$\overline{0}$	$\overline{0}$	$\mathbf{O}$
7. Provisions	129	$\Omega$	$\bf{0}$		$\Omega$
8. Other operating expenses	130	609.821	1.594.823	935.722	1.877.625
III. FINANCIAL INCOME (132 do 136)	131	880.862	1.812.761	1.037.884	1.913.539
1. Interest income, foreign exhange differences, dividends and other financial Income related to subsidiaries	132	713.784	871.645	837.621	902.606
2. Interest Income, foreign exchange differences, dividends and other financial
Income related to third parties	133	121.149	644.430	154.334	669.357
3. Part of income from associates and participating interests	134	45.929	296.686	45.929	341.440
4. Unrealized gains (income) from the financial assets	135		$\mathbf{o}$	O	$\Omega$
5. Other financial income	136				137
IV. FINANCIAL COSTS (138 do 141)	137	18.519.249	6.355.277	18.930.032	7.294.099
1. Interest, foreign exchange dfifferences and other expenses related to subsidiaries	138	12.778	562,569	20.443	562.612
2. Interest, foreign exchange differences and other expenses related to third parties	139	17.810.520	5.474.580	18.175.056	5.823.773
3. Unrealized loss (expenses) from the financial assets	140
4. Other financial expenses	141	695.951	318.128	734.533	907.714
V. SHARE OF INCOME OF ASSOCIATES	142	$\bf{0}$	$\mathbf 0$	0	8.579.388
VI. SHARE OF LOSS OF ASSOCIATES	143	O	$\overline{0}$	$\mathbf{0}$	$\bf{0}$
VII. EXTRAORDINARY - OTHER INCOME	144	$\mathbf 0$	$\mathbf 0$	$\bullet$	0
VIII. EXTRAORDINARY - OTHER EXPENSES	145	Ō	$\mathbf 0$	ō
IX. TOTAL INCOME (111+131+142 + 144) X. TOTAL EXPENSES (114+137+143 + 145)	146	184,525,740	173.773.106	273.910.758	266.427.611
XI. PROFIT OR LOSS BEFORE TAX (146-147)	147	201.479.163	173.349.277	283.198.218	255.637.407
1. Profit before tax (146-147)	148 149	$-16.953.423$ O	423.829	$-9.287.460$	10.790.204
2. Loss before tax (147-146)	150	16.953.423	423.829 $\bf{0}$	$\bf{0}$ 9.287.460	10.790.204
XII. INCOME TAX EXPENSE	151		$\overline{0}$	2.092.528	554.757
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151)	152	$-16.953.423$	423.829	$-11.379.988$	10.235.447
1. Profit for the period (149-151)	153	0	423.829	O	10.235.447
2. Loss for the period (151-148)	154	16.953.423		11.379.988
ANNEX TO THE PROFIT AND LOSS ACCOUNT (to be filled in by entities submitting consolidated financial statements)
XIV. PROFIT OR LOSS FOR THE PERIOD
1. Attributable to owners of the company	155	0		$-11.213.999$	10.436.958
2. Attributable to non-controlling interests STATEMENTS OF COMPREHENSIVE INCOME (to be filled by entities who work in compliance with IFRS)	156	O		$-165.989$	$-201.512$
I. PROFIT OR LOSS FOR THE PERIOD (= 152)	157			$\bf{0}$
II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAX (159 do 165)	158	$-16.953.423$ $\mathbf 0$	423.829	$-11.379.988$	10.235.447
1. Exchange differences arising from foreign operations	159	$\bf{0}$	0 0	$\mathbf 0$ $\mathbf 0$
2. Revaluation of non-current assets and intangible assets	160	$\mathbf{0}$	$\mathbf 0$	$\bullet$	$\bf{0}$
3. Gains or loss available for sale investments	161	$\mathbf 0$	$\mathbf 0$	$\mathbf{0}$	$\mathbf 0$
4. Gains or loss on net movement on cash flow hedges	162	$\bullet$	$\mathbf 0$	$\mathbf{0}$	$\bf{0}$
5. Gains or loss on net investments hedge	163	$\mathbf 0$	$\overline{0}$	$\bf{0}$	$\pmb{0}$
6. Share of the other comprehensive income/loss of associates	164	$\overline{0}$	$\mathbf{0}$	$\mathbf{0}$	$\bf{0}$
7. Acturial gain / loss on post employment benefit obligations	165	$\mathbf{0}$	$\bf{0}$	$\mathbf{0}$	$\bf{0}$
III. TAX ON OTHER COMPREHENSIVE INCOME OF THE PERIOD	166	$\mathbf{0}$	$\mathbf{o}$	$\mathbf{0}$	$\bf{0}$
IV. NET OTHER COMPREHENSIVE INCOME OR LOSS FOR THE YEAR (158-166)	167		$\Omega$	$\Omega$
RAZDOBLJA (158-166) 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)	168	$-16.953.423$	423.829	$-11.379.988$	10.235.447
VI. TOTAL COMPREHENSIVE INCOME/LOSS FOR THE PERIOD		0 1	$\circ$	0 $\overline{0}$
1. Attributable to owners of the company	169	$\mathbf{O}$	$\mathbf{O}$	$-11.213.999$
2. Atributable to non-controlling interests	170	$\mathbf 0$	$\mathbf{0}$	$-165.989$	10.436.958 $-201.512$

V. CASH FLOW STATEMENT

ITEM	AOP	Previous period	Current period	Previous period	Current period
$\overline{\mathbf{1}}$	$\mathbf{2}$	3 2	$\blacktriangleleft$	5 1	6
			DALEKOVOD jsc		DALEKOVOD GROUP
CASH FLOW FROM OPERATING ACTIVITIES
1. Pre-tax profit	001	$-16.953.423$	423.829	$-9.287.460$	10.235.447
2. Depreciation	002	9.780.190	8.774.600	12.525.801	11.482.124
3. Increase in short-term liabilities	003	56.235.957	34.990.123	111.030.764	40.366.792
4. Decrease in short-term receivables	004	11.174.384	n	$\overline{0}$	$\bf{0}$
5. Reduction of stocks	005	1.050.010	856.277	$\mathbf{0}$	$\mathbf 0$
6. Other increase in cash flow	006	$\overline{0}$	0	$\mathbf{0}$	7.883.690
I. Total increase in cash flow from operating activities (001 to	007	61.287.118	45.044.829	114.269.105	69.968.052
1. Decrease in short-term liabilities	008				0
2. Increase in short-term receivables	009	$\overline{0}$	25.874.259	41.651.788	50.381.567
3. Increase in stocks	010	$\overline{0}$		5.731.355	4.263.412
4. Other decrease in cash flow	011	24.373.294	17.059.561	27.319.043	$\bf{0}$
Il Total decrease in cash flow from operating activities (008 to	012	24.373.294	42.933.820	74.702.186	54.644.979
A1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES	013	36.913.824	2.111.009	39.566.919	15.323.073
A2) NET DECREASE IN CASH FLOW FROM OPERATING	014	$\bf{0}$	$\mathbf 0$		$\mathbf 0$
CASH FLOW FROM INVESTMENT ACTIVITIES		$\overline{0}$	$\overline{0}$	$\theta$	$\overline{0}$
1. Cash receipts from sale of fixed tangible and intangible assets	015	$\mathbf 0$	$\mathbf 0$	$\Omega$	$\mathbf{0}$
2. Cash receipts from sale of treasury and debt financial	016	6.234.166	$\overline{0}$	6.234.166	$\overline{0}$
3. Cash receipts from interests	017	96.208	$\overline{0}$	96.208	$\overline{0}$
4. Cash receipts from dividends	018	$\overline{0}$	$\overline{0}$	$\overline{0}$	$\overline{0}$
5. Other cash receipts from investment activities	019		$\overline{0}$		$\mathbf 0$
III. Total cash receipts from investment activities (015 do 019)	020	6.330.374	$\bf{0}$	6.330.374	$\bf{0}$
1. Expenditures for buying fixed assets and intangible assets	021	263.255	1.462.852	17.910.592	5.333.794
2. Expenditures for purchasing treasury and debt financial	022	18.563.006	56.124	18.563.006	8.640.494
3. Other expenditures from investment activities	023	$\overline{0}$	506.125	26.347	463,738
IV. Total expenditures from investment activities (021 to 023)	024	18.826.261	2.025.101	36.499.945
B1) NET INCREASE IN CASH FLOW FROM INVESTMENT	025	$\Omega$			14.438.025 $\Omega$
b2) NET DECREASE IN CASH FLOW FROM INVESTMENT	026	12.495.887	2.025.101	30.169.571	14.438.025
CASH FLOW FROM FINANCIAL ACTIVITIES		$\Omega$	$\Omega$
1. Cash receipts from issuance of treasury and debt financial	027			$\overline{0}$	$\mathbf{0}$
		$\mathbf{0}$	$\Omega$	$\mathbf{0}$	$\Omega$
2. Cash receipts from loan principal, bonds, borrowings and other 3. Total cash receipts from financial activities	028 029	54.392.512	967.133	64.387.812	914.703
		$\mathbf{O}$	112.852	$\Omega$	222.853
V. Total cash receipts from financial activities (027 To 029)	030 031	54.392.512	1.079.985	64.387.812	1.137.556
1. Expenditures for repay ment of loan principal and bonds		61.000.742	$\Omega$	61.000.742	$\overline{0}$
2. Expenditures for payment of dividends	032	$\overline{0}$	$\overline{0}$	$\mathbf{C}$	$\circ$
3. Expenditures for financial leasing	033	2.378.984	301.126	2.378.976	$\overline{0}$
4. Expenditures for redemption of treasury shares	034	$\mathbf{0}$	$\mathbf{0}$	O	$\overline{0}$
5. Other expenditures from financial activities	035	$\overline{0}$	$\Omega$		$\overline{0}$
VI. Total expenditures from financial activities (031 to 035)	036	63.379.726	301.126	63.379.718	$\overline{0}$
C1) NET INCREASE IN CASH FLOW FROM FINANCIAL	037	$\mathbf{0}$	778.859	1.008.094	1.137.556
C2) NET DECREASE IN CASH FLOW FROM FINANCIAL	038	8.987.214			$\mathbf{0}$
Total increase in cash flow (013 - 014 + 025 - 026 + 037 - 038)	039	15.430.723	864.767	10.405.442	2.022.604
Total decrease in cash flow $(014 - 013 + 026 - 025 + 038 - 037)$	040	$\Omega$		$\Omega$	$\Omega$
Cash and cash equivalents at the beginning of the period	041	30.113.902	9.691.818	45.934.735	21.153.560
Increase in cash and cash equivalents	042	15.430.723	864.767	10.405.442	2.022.604
Decrease in cash and cash equivalents	043		$\overline{0}$	$\overline{0}$	$\bf{0}$
Cash and cash equivalents at the end of the period	044	45.544.625	10.556.585	56.340.177	23.176.164

VI. STATEMENT OF CHANGES IN EQUITY

	AOP	Previous period	Current period	Previous period	Current period
			DALEKOVOD jsc		DALEKOV OD GROUP
1. Share capital	001	286,726,500	286,726,500	286,726,500	286.726.500
2. Capital reserves	002	80.478.889	80.478.889	80.478.889	80.478.889
3. Reserves from profit	003	157.131.299	157.131.299	159.812.812	159,829,257
4. Retained profit or loss carried forw ard	004		$-422.075.107$	22.621.219	$-382.785.728$
5. Profit or loss of current year	005	$-422.075.107$	423.829	$-405.406.947$	10.436.958
6. Revaluation of longterm tangible assets	006	50.020.716	50.020.716	58.530.455	58.681.662
7. Revaluation of intangible assets	007				$\Omega$
8. Revaluation of financial assets available for sale	008				$\Omega$
9. Other revaluations	009				$\Omega$
10. Total equity and reserves (AOP 001 to 009)	010	152.282.297	152.706.126	202.762.929	213.367.539
11. Foreign exchange differences arising from the titles of net investment in foreign operations	011		0		$\mathbf{0}$
12. Current and deferred taxes (part)	012	0	$\overline{0}$		$\overline{0}$ $\overline{0}$
13. Cash flow protection	013		0		$\overline{0}$ $\Omega$
14. Changes in accounting policies	014	ი	0		$\mathbf{0}$ $\mathbf{0}$
15. Correction of significant errors in the previous period	015	0	0		$\overline{0}$ $\Omega$
16. Other changes in equity	016	$\Omega$	O		$\overline{0}$ $\Omega$
17. Total increase or decrease in equity (AOP 011 to 016)	17	$\mathbf{0}$	O		$\bullet$ $\bf{0}$
17 a. Attributed to parent company equity holders	018			202.762.929	213.367.539
17 b. Attributed to minority interest	019			2.597.942	2.430.290

VII. NOTES TO FINANCIAL STATEMENTS

1. MANAGEMENT BOARD MEMBERS

• 1. Chairman: Matjaž Gorjup, M-Mech.Eng.
• 1. Member: Krešimir Anušić, M-El.Eng.
• 1. Member: Marko Jurković, M-El.Eng
• 1. Member: M-Econ. Željko Lekšić, M-Mech.Eng.
• 1. Member: Goran Brajdić, M-Econ.

2. SUPERVISORY BOARD MEMBERS

Chairman: Marijan Pavlović, LLM Member: Nataša Ivanović, M-Econ. Member: Dubravko Štimac, MSc, M-Econ. Member: Davor Doko, M-Econ. Member: Ante Ćurković, PhD, M-Eng. Member: Viktor Miletić

3. SHAREHOLDING STRUCTURE (as at 31.3.2013):

NATURAL PERSONS	1.441.723
PENSION FUNDS	638.891
BANKS	337.128
TELEGRA d.o.o.	164,753
OTHERS	240.836
OWN SHARES	43,934
TOTAL	2,867,265

4. MERGERS AND ACQUISITIONS

There were no mergers and acquisitions in 1Q of 2013.

5. UNCERTAINTY

There were no dubious and disputed receivables identified in 1Q of 2013.

6. DESCRIPTION OF PRODUCTS AND SERVICES

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

• · electrical facilities, especially transmission lines between 0.4 and 500 kV
• · substations of all types and voltage levels of up to 500 kV
• · air, underground and underwater cables of up to 110 kV
• · telecommunication facilities
• · all types of networks and antennas
• · production of suspension ad joining equipment for all types of transmission lines and substations of 0.4 to 500 kV

• production and installation of all metal components for roadways, especially for road lighting, crash barriers and traffic signalization

• tunnel lighting and traffic management
• · electrification of railways and tramways

7. CHANGES IN ACCOUNTING POLICIES

There are no new accounting policies.