Dalekovod d.d. — Management Reports 2013

Nov 8, 2013

Dalekovod d.d. Marijana Čavića 4 10 000 Zagreb

Management Report for Jan to Sep 2013

Unaudited, unconsolidated

Zagreb, 31 October 2013

TABLE OF CONTENTS:

• MANAGEMENT REPORT $\mathbf{L}$
• DECLARATION II.
• III. BALANCE SHEET
• STATEMENT OF COMPREHENSIVE INCOME IV.
• V. CASH FLOW STATEMENT
• VI. STATEMENT OF CHANGES IN EQUITY

MANAGEMENT REPORT T.

Croatian quality

In the first nine months of 2013, Dalekovod Group ("Group") generated operating revenue of HRK 900.5 million, EBITDA of HRK 47.4 million, and net income of HRK 6.4 million. During the same period, Dalekovod d.d. ("Company") generated operating revenue of HRK 628 million, EBITDA of HRK 14.4 million, and net loss of HRK 15.3 million as a result of restructuring costs, depreciation and foreign exchange losses.

The Company's operations in the first nine months of 2013 were marked by positive shifts in Company's and Group's business:

• The net income of Dalekovod Group was HRK 6.4 million, which was an increase compared to the same period of 2012 when it incurred net loss of HRK 9.7 million.
• The Company reached a settlement with its creditors in the Pre-bankruptcy Settlement process, at the hearing held on 2 April 2013 before FINA's Settlement Council.
• The restructuring of the Company is conducted as planned.

There was a change in the Management Board of Dalekovod d.d. in September. The Chairman of the Management Board Mr. Matjaž Gorjup left the Company at his own request and Mr. Goran Brajdić, a former Management Board member, was appointed Chairman of the Management Board by Supervisory Board's resolution.

After changing the strategy of the Company and the Group, which primarily includes a stronger focus on international markets, the Company and its management are aware it is crucial to continue with further optimization of fixed costs for the Company to adapt to the newly emerged environment of reduced demand on the domicile market and adapt for a significant penetration of international markets.

During the past period, the Company made great efforts toward obtaining projects on international markets, most of which will be implemented this year in the upcoming years. The Company also implements projects in Norway, Ukraine and Slovenia. In addition, the Group and the Company participate in a number of local and international tenders to contract new work and achieve their plan requiring moderate growth in revenue in the upcoming years. The Company has undertaken activities to obtain its position and appear on certain Western European markets for the first time, where the prequalifying process for work contracts is ongoing or has been completed. As a result of Company's strong international activity, new significant contracts are expected to be awarded to the Company abroad, of which the Company will promptly notify its shareholders.

For the Management Board:

DaLekovop

raidić Boran iair ian Management Board balekovod d.d

$\overline{2}$

DECLARATION Ш.

Pursuant to Article 410, paragraph 1, and Article 407, paragraph 2, subparagraph 3 and paragraph 3 of the Capital Market Act, the persons responsible for preparing the Report: Goran Brajdić, Chairman of the Management Board, Krešimir Anušić, Management Board Member, Marko Jurković, Management Board Member, and Željko Lekšić, Management Board Member, hereby make this

DECLARATION

To the best of our knowledge, the summary set of financial statements of Dalekovod and the Group, prepared in compliance with the appropriate financial reporting standards, provides a full and true view of the assets, liabilities and income of Dalekovod and the Group, with a brief comment on the causes of the information provided. The financial statements have not been audited.

For the Management Board:

Goran Brajdić Chairman of the Maryagement Board Dalekovod d.d.

III. BALANCE SHEET

Name of position:	AOP	Previous year (net)	Current year (net)	Previous year (net)	Current year (net)
		DALEKOVOD jsc			DALEKOVOD GROUP
1	$\overline{2}$	$\overline{\mathbf{3}}$	$\overline{4}$	$\overline{5}$	$\overline{6}$
ASSETS
A) SUBSCRIBED CAPITAL UNPAID	001	$\overline{0}$		$\overline{0}$
B) NON CURRENT ASSETS (003+010+020+029+033)	002	1.031.951.829	1.009.109.024	1.203.206.236 17.343.544	1.212.453.468 14.526.466
I. INTANGIBLE ASSETS (004 to 009)	003	10.369.957	7.712.745	$\mathbf{0}$
1. Research & Development expenditure	004 005	10.356.357	7.712.745	12.476.778	9.738.524
2. Patents, licences, royalties, trade marks, software&similar rights	006		0	4.559.000	4.559.000
3. Goodwill	007	$\overline{0}$	$\overline{0}$
4. Prepayments for intangible assets 5. Intangible assets under construction	008	13.600	$\overline{0}$	13.600
6. Other intangible assets	009			294.165	228.942
II. TANGIBLE ASSETS (011 to 019)	010	542.590.087	522.175.022	1.035.750.191	1.040.430.508
1. Land	011	164.913.887	164.913.887	212.852.569	212.915.922
2. Property	012	67.252.692	65.144.008	114.703.655	112.381.090
3. Plants and equipment	013	81.475.067	71.713.926	141.331.822	128.244.099
4. Tools, plants&vehicles	014	8.175.967	5.409.988	16.523.933	14.820.579
5. Biological asset	015		0	$\Omega$
6. Prepayments for tangible assets	016	$\overline{0}$	$\mathbf 0$	118.952	121.310
7. Assets under construction	017	$\mathbf{0}$	$\mathbf{0}$	329.054.453	356.563.083
8. Other tangible assets	018		$\Omega$	14.224 221.150.585	9.796 215.374.630
9. Investments property	019	220.772.474	214.993.213 479.221.257	150.112.501	157.496.494
III. NON-CURRENT FINANCIAL ASSETS (021 to 028)	020 021	478.991.785 410.524.187	410.580.311	79.730.046	88.488.161
1. Share in related parties	022	1.384.622	1.396.727	1.384.622
2. Loans to related parties	023	26.436.656	26.436.656	26.436.656	26.436.656
3. Participating interests (stakes) 4. Loans to participating interest	024	O		$\mathbf{0}$
5. Investments in securities	025	36.590.140	36.590.139	36.613.812	36.599.314
6. Loans & deposits	026	4.056.180	4.217.424	5.665.420	5.684.830
7. Other non-current financial assets	027			281.945	287,534
8. Investment accounted by equity method	028	Ö	0	$\mathbf{0}$
IV. TRADE RECEIVABLES (030 to 032)	029	$\bf{0}$	0	$\bf{0}$	$\bf{0}$
1. Receivables from related parties	030	$\overline{0}$	$\mathbf{0}$	$\bf{0}$	$\mathbf{0}$
2. Receivables from credit sales	031	$\overline{0}$	$\mathbf{0}$	$\overline{O}$	$\mathbf{0}$
3. Other receivables	032	$\overline{0}$	$\overline{0}$	$\overline{0}$ $\bf{0}$	$\bf{0}$
V. DEFERRED TAX ASSETS	033	$\bf{0}$	$\bf{0}$ 501.355.839	710.536.470	676.185.361
C) CURENT ASSETS (035+043+050+058)	034 035	457.783.310 10.339.440	8.464.706	152.780.132	126.592.606
I. INVENTORIES (036 to 042)	036	8.147.751	6.614.570	58.374.403	54.968.819
1. Raw materials & consumables	037			32.799.672	16.896.630
2. Work in progress 3. Products	038	2.145.149	1.850.136	43.776.567	42.540.084
4. Merchandise	039	46.540		17.437.858	11.669.186
5. Prepayments for inventories	040	$\overline{0}$	$\Omega$	273.960	398.732
6. Other available-for-sale assets	041	$\overline{0}$	0	117.671	119.155
7. Biological asset	042		$\overline{0}$
II. RECEIVABLES (044 to 049)	043	372.825.182	400.558.097	526.792.020	509.330.229
1. Receivables from related parties	044	46.948.617	54.029.023
2. Trade receivables	045	264.682.910	247.033.323	430.942.041	380.736.845
3. Receivables from participating parties	046	494.108	803.928	1.045.495	1.355.315
4. Amounts receivable from employees	047	506.898	383,656 $\mathbf{0}$	602.781 843.602	1.948.475 5.313.911
5. Receivables from government agencies	048 049	$\Omega$ 60.192.649	98.308.167	93.358.101	119.975.684
6. Other receivables	050	64.926.870	86.483.461	9.810.758	17.086.300
III. CURRENT FINANCIAL ASSETS (051 to 057)	051			$\circ$
1. Share in related parties 2. Loans to related parties	052	63.947.039	85.218.042	$\mathbf{O}$	$\overline{0}$
3. Participating interests (stakes)	053	$\Omega$			$\overline{0}$
4. Loans to participating interest	054	334.261	311.737	334.261	311.736
5. Investments in securities	055	28.074	28.074	28.074	28.074
6. Loans & deposits	056	617.496	925.608	9.087.557	16.385.624
7. Other financial assets	057			360.866	360.866
IV. CASH ON HAND AND IN THE BANK	058	9.691.818	5.849.575	21.153.561	23.176.226
D) PREPAYMENTS AND ACCRUED INCOME	059	2.951.921	1.072.007	5.600.231	2.136.256
E) TOTAL ASSETS (001+002+034+059)	060	1.492.687.060	1.511.536.870	1.919.342.937	1.890.775.085
FI OFF-BALANCE SHEET ITEMS	061	1.091.563.126	980.264.508	1.756.703.665	1.627.273.864

Name of position:	AOP	Previous year (net)	Current year (net)	Previous year (net)	Current year (net)
		DALEKOVOD jsc		DALEKOVOD GROUP
$\overline{1}$	$\overline{2}$	$\overline{\mathbf{3}}$	4	$\overline{5}$	$6\overline{6}$
EQUITY AND LIABILITIES
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	133.116.722	117.823.179	188.734.011	191.085.311
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	162.628.489	162.244.815
1. Legal reserves	066	11.486.600	11.486.600	12.634.367	11.652.122
2. Reserves for own shares	067	7.773.071	7.773.07	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	32.613.117	32.924.699
5. Other reserves	070	112.763.413	112.763.413	117.381.006	117.667.994
IV. REVALUATION RESERVES	071	50.020.716	50.020.716	64.209.170	64.877.600
V. RETAINED EARNINGS OR LOSS BROUGHT FORWARD (073-074)	072	0	$-441.240.682$	23.270.485	-410.957.393
1. Retained earnings	073	$\overline{0}$		32.730.352	410.957.393
2. Loss brought forward	074	$\overline{0}$	441.240.682	9,459.867 $-429.923.513$	6.539.825
VI. PROFIT OR LOSS FOR THE FINANCIAL YEAR (076-077)	075	-441.240.682	$-15.293.543$	0	6.539.825
1. Profit for the financial year	076	0		429.923.513
2. Loss for the financial year	077	441.240.682	15.293.543	1.343.991	1.175.077
VII. MINORITY INTEREST	078	$\bf{0}$		11.969.904	11.384.447
B) PROVISIONS (080 to 082)	079	7.327.727	7.327.727 7.327.727	10.637.363	10.512.532
1. Provisions for pensions, severance pay and similar libabilities	080 081	7.327.727 0	$\bf{0}$	634.831	35.521
2. Provisions for tax obligations	082	$\overline{0}$	$\overline{0}$	697.710	836.395
3. Other provisions	083	475.194.193	458.698.293	484.089.874	467.531.318
C) NON-CURRENT LIBILITIES (084 to 092)	084	$\overline{0}$	0	$\overline{0}$
1. Liabilites to related parties	085	$\overline{0}$	ñ	$\overline{0}$
2. Liabilities for loans, deposits and other 3. Liabilities towards banks and other financial institutions	086	334.650.265	318.839.744	343.097.933	327.100.601
	087	$\overline{0}$		O
4. Amounts payable for prepayment 5. Trade payables	088	140.543.928	139.858.549	140.991.941	140.430.717
6. Amounts payable for securities	089	$\mathbf 0$	$\bf{0}$	$\mathbf 0$	$\mathbf 0$
7. Liabilities toward participating interests	090	$\overline{\mathbf{0}}$	$\overline{0}$	$\overline{0}$	$\overline{0}$
8. Other non-current liabilities	091	$\overline{\mathbf{0}}$	$\overline{0}$	$\overline{0}$	$\overline{0}$
9. Deffered tax	092	$\Omega$	$\mathbf 0$	$\overline{c}$
D) CURRENT LIABILITIES (094 to 105)	093	877.048.418	927.687.671	1.222.851.788	1.216.445.703
1. Liabilites to related parties	094	95,985,029	129.298.399	$\mathbf{0}$
2. Liabilities for loans, deposits and other	095	7.086.640	7.698.274	6.052.021	13.491.446
3. Liabilities towards banks and other financial institutions	096	308,082.205	307.831.586	590.691.325	609.511.164
4. Amounts payable for prepayment	097	31.858.753	35.741.483	34.247.399	39.779.070
5. Trade payables	098	338.410.290	353.792.669	476.938.745	446.505.321
6. Amounts payable for securities	099	57.670.915	57.411.464	45.034.981	44.775.530
7. Liabilities toward participating interests	100	6.464.836	6.401.397	6.464.836	6.401.397
8. Liabilities to emloyees	101	9,976.064	6.412.660	19.343.663	16.898.301
9. Taxes, contributions and similar liabilities	102	12.454.073	14.399.318	31.713.948	27.168.620
10. Liabilities arising from share in the result	103	1.899.762	1.899.762	1.899.762	1.899.762
11. Liabilities ansing from non-current assets held for sale	104	$\mathbf{0}$
12. Other current liabilities	105	7.159.851	6.800.659	10.465.107	10.015.092
E) ACCRUED EXPENSES AND DEFERRED INCOME	106	$\overline{0}$		11.697.360	4.328.307
F) TOTAL LIABILITIES (062+079+083+093+106)	107	1.492.687.060	1.511.536.870	1.919.342.937	1.890.775.085
G) OFF-BALANCE SHEET ITEMS	108	1.091.563.126	980.264.508	1.756.703.665	1.627.274.864
ANNEX TO THE BALANCE SHEET (to be filled in by a company preparing the consolidated annual financial statements)
A) CAPITAL AND RESERVES
1. Attributable to equity holders of the parent company's capital	109			187,390.020	189.910.235
2. Attributable to non-controlling interests	110			1.343.991	1.175.077

IV. STATEMENT OF COMPREHENSIVE INCOME

Name of position	AOP	Q3 2012	Q3 2013	Q3 2012	Q3 2013
$\blacksquare$	$\overline{2}$	$\overline{4}$ $\overline{\mathbf{3}}$ DALEKOVOD J.S.C.		5 DALEKOVOD GROUP	6
		784.195.698	628.494.937	1.090.025.816	900.520.696
OPERATING INCOME (112+113)	111 112	773.620.102	620,150.339	1.079.715.491	888.540.561
1. Sales revenue 2. Other operating income	113	10.575.596	8.344.598	10.310.325	11.980.135
II. OPERATING EXPENSES (115+116+120+124+125+126+129+130)	114	775.929.429	640,882.876	1.045.822.225	899.415.340
1. Changes in inventories of finished products and work in progress	115	3.342.101	208.041	10.415.938	17.528.317
2. Material costs (117 to 119)	116	560.333.171	423.685.560	709.504.317	567.704.176
a) Cost of raw materials & consumables	117	155.263.973	116.507.340	278.187.510	153.778.394
b) Cost of goods sold	118	79.987.090	26.326.255	80.476.550 350.840.257	70.714.161 343.211.622
c) Other costs	119 120	325.082.108 107.500.744	280.851.965 113.450.372	186.767.716	183.336.800
3. Staff costs (121 to 123)	121	71.230.982	75,606.359	119.292.514	118.452.649
a) Net salaries b) Employee income tax	122	17.900.351	19.765.664	39.212,670	38.360.108
c) Tax on payroll	123	18.369.411	18.078.349	28.262.532	26.524.043
4. Depreciation and amortisation	124	29.442.008	25.579.856	37,808.797	33.928.616
5. Other expenditures	125	68.146.747	73.478.800	90.596.304	91.831.808
6. Value adjustment (127+128)	126	90.924	1.205.371	92.402	1.075.684
a) non-current assets (without financial assets)	127
b) current asssets (without financial assets)	128	90.924	1.205.371	92.402	1.075.684
7. Provisions	129		3.274.876	10.636.751	4.009.939
8. Other operating expenses	130 131	7.073.734 2.839.868	14.639.982	3.430.339	15.736.263
III. FINANCIAL INCOME (132 to 136) 1. Interest income, foreign exhange differences, dividends and other financial
income related to subsidiaries	132	1.950.316	1.934.596	2.414.859	1.733.893
2. Interest income, foreign exchange differences, dividends and other financial				656.798	13.662.598
income related to third parties	133	536,815	12.408.700
3. Part of income from associates and participating interests	134	352.737	296.686	352.737	296.686
4. Unrealized gains (income) from the financial assets	135	$\overline{0}$	0
5. Other financial income	136		$\Omega$	5.945	43.086
IV. FINANCIAL COSTS (138 to 141)	137	55.195.745	17.225.693	56.312.633	19.000.552
1. Interest, foreign exchange dfifferences and other expenses related to subsidiaries	138	680.199	665.691 15.724.822	822.944 48.527.282	629.413 17.555.931
2. Interest, foreign exchange differences and other expenses related to third parties	139 140	47,606.373
3. Unrealized loss (expenses) from the financial assets	141	6.909.173	835.180	6.962.407	815.207
4. Other financial expenses SHARE OF INCOME OF ASSOCIATES	142	$\bf{0}$	$\bf{0}$	3,198,162	11.336.905
V. VI. SHARE OF LOSS OF ASSOCIATES	143	$\bf{0}$	$\overline{0}$		$\mathbf{o}$
VII. EXTRAORDINARY - OTHER INCOME	144	$\bf{0}$	$\bf{0}$	5.019.731	$\bf{0}$
VIII. EXTRAORDINARY - OTHER EXPENSES	145			140	$\overline{0}$
IX. TOTAL INCOME (111+131+142 + 144)	146	787.035,566	643.134.919	1.101.674.048	927.593.864
X. TOTAL EXPENSES (114+137+143+145)	147	831.125.174	658.108.569	1.102.134.998	918.415.892
XI. PROFIT OR LOSS BEFORE TAX (146-147)	148	$-44.089.608$	$-14.973.650$	$-460.950$ O	9.177.973 9.177.973
1. Profit before tax (146-147)	149	$\Omega$ 44.089.608	14.973.650	460.950	$\circ$
2. Loss before tax (147-146)	150 151	323.966	319.893	9.236.417	2.819.197
XII. INCOME TAX EXPENSE XIII. PROFIT OR LOSS FOR THE PERIOD (148-151)	152	-44.413.574	$-15.293.543$	-9.697.367	6.358.776
1. Profit for the period (149-151)	153				6.358.776
2. Loss for the period (151-148)	154	44.413.574	15.293.543	9.697.367	$\circ$
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	$\overline{O}$	$\circ$	$-9.687.260$	6.539.825
2. Attributable to non-controlling interests	156	$\Omega$		$-10.107$	$-181.049$
STATEMENTS OF COMPREHENSIVE INCOME (to be filled by entities who work in compliance with IFRS)			$-15293.543$	$-9697.367$	6.358.776
PROFIT OR LOSS FOR THE PERIOD (= 152)	157	$-44.413.574$ $\Omega$	$\Omega$	$\overline{O}$	$\circ$
II OTHER COMPREHENSIVE INCOME /LOSS BEFORE TAX (159 to 165)	158 159	$\circ$	$\bullet$	$\overline{0}$	$\circ$
1. Exchange differences arising from foreign operations 2. Revaluation of non-current assets and intangible assets	160	$\ddot{\mathbf{O}}$	$\overline{0}$	$\overline{0}$	$\circ$
3 Gains or loss available for sale investments	161	$\mathbf{0}$	$\mathbf{O}$	$\bf{0}$	$\circ$
4 Gains or loss on net movement on cash flow hedges	162	$\overline{O}$	$\mathbf{O}$	$\overline{0}$	$\circ$
5. Gains or loss on net investments hedge	163	$\mathbf{O}$	$\circ$	$\circ$	$\circ$
6 Share of the other comprehensive income/loss of associates	164	$\overline{0}$	$\circ$	$\circ$	$\theta$
7. Acturial gain / loss on post employment benefit obligations	165	$\overline{0}$	$\mathbf{0}$		$\circ$
III TAX ON OTHER COMPREHENSIVE INCOME OF THE PERIOD	166		$\circ$	$\circ$	$\circ$ $\overline{0}$
IV. NET OTHER COMPREHENSIVE INCOME OR LOSS FOR THE YEAR (158-166)	167	$-44.413.574$	-15 293 543	$-9.697.367$	6.358.776
V. TOTAL COMPREHENSIVE INCOME/LOSS FOR THE PERIOD (157+167)	168
APPENDIX Statement of Comprehensive Income (to be filled in by entities submitting consolidated financial statements)
VI. TOTAL COMPREHENSIVE INCOME/LOSS FOR THE PERIOD 1. Attributable to owners of the company	169		$\bf{0}$ $\bf{0}$	$-9.687.260$	6,539.825
2. Attributable to non-controlling interests	170		$\mathbf 0$ $\overline{0}$	$-10.107$	$-181.049$

V. CASH FLOW STATEMENT

Name of position:	AOP	Previous period	Current period	Previous period	Current period
м	$\mathbf{z}$	$\overline{\mathbf{3}}$	$\overline{4}$	$\overline{5}$	$\epsilon$
		DALEKOVOD jsc		DALEKOVOD GROUP
CASH FLOW FROM OPERATING ACTIVITIES
1. Pre-tax profit	001	$-44.089.608$	$-14.973.650$	$-460.950$	9.177.973
2. Depreciation	002	29.442.008	25.579.856	37.808.797	33.928.616
3. Increase in short-term liabilities	003	116.333.145	48.632.310	124,640.865
4. Decrease in short-term receivables	004				16.850.415
5. Reduction of stocks	005	2.950.813	1.874.734	9.182.841	26.187.525
6. Other increase in cash flow	006	7.230.664	3,918.205	6.663.898	756.686
. Total increase in cash flow from operating activities (001 to 006)	007	111.867.022	65.031.455	177,835.451	86.901.215
1. Decrease in short-term liabilities	008				29.885.488
2. Increase in short-term receivables	009	8.859.739	27.732.915	65.684.854
3. Increase in stocks	010	O		$\overline{O}$
4. Other decrease in cash flow	011
Il Total decrease in cash flow from operating activities (008 to 011)	012	8.859.739	27.732.915	65.684.854	29.885.488
A1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES (007-012)	013	103.007.283	37.298.540	112.150.597	57.015.727
A2) NET DECREASE IN CASH FLOW FROM OPERATING ACTIVITIES (012-007)	014	$\bf{0}$		$\bf{0}$	$\overline{0}$
CASH FLOW FROM INVESTMENT ACTIVITIES
1. Cash receipts from sale of fixed tangible and intangible assets	015	1.118.865	24.398	1.118.865	100.369
2. Cash receipts from sale of treasury and debt financial instruments	016	9.208.715		25.229.571
3. Cash receipts from interests	017	299.429	134.431	311.986	182.800
	018	$\Omega$	$\theta$	$\Omega$	$\Omega$
4. Cash receipts from dividends 5. Other cash receipts from investment activities	019			$\Omega$	$\Omega$
III. Total cash receipts from investment activities (015 to 019)	020	10.627.009	158.829	26.660.422	283.169
1. Expenditures for buying fixed assets and intangible assets	021	8.277.778	2,507,579	9,367.924	35.791.855
2. Expenditures for purchasing treasury and debt financial instruments	022	16.922.377	229.472	16.922.377	7.383.993
3. Other expenditures from investment activities	023	19.215.418	37.877.182	89.913.202	30.358,998
IV. Total expenditures from investment activities (021 to 023)	024	44.415.573	40.614.233	116.203.503	73.534.846
B1) NET INCREASE IN CASH FLOW FROM INVESTMENT ACTIVITIES (020-024)	025				$\mathbf{0}$
b2) NET DECREASE IN CASH FLOW FROM INVESTMENT ACTIVITIES (024-020)	026	33.788.564	40.455.404	89.543.081	73.251.677
CASH FLOW FROM FINANCIAL ACTIVITIES
1. Cash receipts from issuance of treasury and debt financial instruments	027	$\Omega$	$\mathbf 0$	$\Omega$	20.240.058
2. Cash receipts from loan principal, bonds, borrowings and other loans	028	22.122.851	$\overline{0}$	72.292.598	$\overline{0}$
3. Total cash receipts from financial activities	029	$\Omega$	$\overline{0}$	800.000	$\Omega$
V. Total cash receipts from financial activities (027 to 029)	030	22.122.851	$\ddot{\mathbf{0}}$	73.092.598	20.240.058
1. Expenditures for repayment of loan principal and bonds	031	45.710.422	$\Omega$	47.228.555	1.420.219
2. Expenditures for payment of dividends	032				$\overline{0}$
3. Expenditures for financial leasing	033	11.159.118	685.379	11.191.529	561.224
4. Expenditures for redemption of treasury shares	034	$\Omega$	$\Omega$	o	$\bullet$
5. Other expenditures from financial activities	035			2.531.382	$\theta$
	036	56.869,540	685.379	60.951.466	1.981.443
VI. Total expenditures from financial activities (031 to 035) C1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES (030-036)	037			12.141.132	18.258.615
C2) NET DECREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES (036-030)	038	34.746.689	685.379		$\mathbf{o}$
Total increase in cash flow (013 - 014 + 025 - 026 + 037 - 038)	039	34.472.030		34.748.648	2.022.665
Total decrease in cash flow (014 - 013 + 026 - 025 + 038 - 037)	040		3.842.243		$\Omega$
	041	30.113.902	9,691.818	45.934.735	21.153.561
Cash and cash equivalents at the beginning of the period	042	34.472.030		34.748.648	2.022.665
Increase in cash and cash equivalents Decrease in cash and cash equivalents	043		3.842.243		$\bf{0}$
Cash and cash equivalents at the end of the period	044	64.585.932	5.849.575	80.683.383	23.176.226

VI. STATEMENT OF CHANGES IN EQUITY

Name of position:	AOP	Previous period	Current period	Previous period	Current period
		DALEKOVOD jsc			DALEKOVOD GROUP
1	$\mathbf{z}$	$\overline{\mathbf{3}}$	$\blacktriangleleft$	5	6
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	162.628.489	162.244.815
4. Retained profit or loss carried forward	004		$-441.240.682$	23.270.485	$-410.957.393$
5. Profit or loss of current year	005	$-441.240.682$	$-15.293.543$	$-429.923.513$	6.539.825
6. Revaluation of longterm tangible assets	006	50.020.716	50,020.716	64.209.170	64.877,600
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	133.116.722	117.823.179	187,390,020	189.910.235
11. Foreign exchange differences arising from the titles of net investment in foreign operations	011				$\mathbf{O}$
12. Current and deferred taxes (part)	012				$\mathbf{0}$ n
13. Cash flow protection	013				$\Omega$ O
14. Changes in accounting policies	014				$\mathbf{0}$ $\Omega$
15. Correction of significant errors in the previous period	015	0			$\Omega$ $\Omega$
16. Other changes in equity	016	$\mathbf{0}$			$\mathbf{0}$ $\mathbf{0}$
17. Total increase or decrease in equity (AOP 011 to 016)	017		Ō $\mathbf 0$		$\mathbf 0$ $\bf{0}$
17 a. Attributed to parent company equity holders	018			187,390,020	189.910.235
17 b. Attributed to minority interest	019			1.343.991	1.175.077

VII. NOTES TO FINANCIAL STATEMENTS

1. MANAGEMENT BOARD MEMBERS

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

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 30 September 2013)

NATURAL PERSONS	1.475.249
PENSION FUNDS	638.891
BANKS	324.673
TELEGRA d.o.o.	164.753
OTHERS	219.765
OWN SHARES	43.934
TOTAL	2.867.265

4. MERGERS AND CONSOLIDATIONS

There were no mergers or consolidations in the first three quarters of 2013.

5. UNCERTAINTY

No items of doubtful and disputable debt affecting business continuity were identified in the first three quarters of 2013.

6. DESCRIPTION OF PRODUCTS AND SERVICES

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

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

7. CHANGES IN ACCOUNTING POLICIES

There are no new accounting policies.