Dalekovod d.d.

Management Reports • Oct 30, 2020

DALEKOVOD GROUP

Dalekovod d.d.

Email: dalekovod@dalekovod.hr Website: www.dalekovod.com

CONTENT

management report__________	4
Key messages______________		4
Financial result for the period I-III quarter 2020___________		5
Overview of the operations of key segments of the Group	________	6
Financial position of the Group ____________		8
Statement ______	Error! Bookmark not defined.
Group FInanatial Report for i-IX 2020 _______	12
Statement of financial position ___________		12
Income statement _________		13
Cash flow statement _____________		14
Statement of capital changes for the current period	______	15
Statement of capital changes for the previous period	_____	16
Finantial report of the company for i-IX 2020 _______	17
Statement of financial position ___________		17
Income statement _________		18
Cash flow statement _____________		19
Statement of capital changes for the current period	______	20
Statement of capital changes for the previous period	_____	21
Notes to financial statements _______	20
Basic information__________		20
Shareholder structure (as of September 30, 2020):	_______	20
Aquisition, merger, sale, foundation_______		21
Uncertainty ______________		21
Aboutpis products and services___________		21
Changes in accounting policies ___________		21

REVENUES, EBITDA AND NET PROFIT OF THE GROUP

(I-IX / 2020)

OPERATING INCOME, EBITDA AND NET PROFIT DALEKOVOD D.D.

(I-IX / 2020)

MANAGEMENT REPORT

Key Indicators

The emergence of the COVID-19 pandemic at the end of March in all markets in which Dalekovod Group operates (here below: The Group) has influenced and changed the way business activities are carried out so far. After the initial negative influence at the beginning of the 2 nd quarter, mostly in the context of postponement of tenders and logistical challenges on construction sites and activities in manufacturing companies, the situation stabilized during the 3 rd quarter. Regardless of business stabilization, the COVID-19 pandemic has affected cost growth (quarantine, transport, logistics, material prices...) and dynamics in contracting, worse than expected at the beginning of the year. High level of contracted jobs in the period prior to the COVID-19 pandemic resulted in growth of revenues and operating profitability of the Group in the first nine months, compared to the same period of the previous year. Comprehensive restructuring process started in 1 st quarter of last year enabled the Group to respond more quickly to the challenges, especially in newly emerging COVID-19 circumstances. These activities related to restructuring, which were planned during 2020, were largely implemented during the 3 rd quarter. The potential impact of the spread of COVID-19 pandemic on business in coming months is significant, but currently we cannot quantify its financial impact.

Group management follows with great care development of situation related to COVID-19 pandemic. Activities are mostly directed to health of employees and their families. The Group's protection and measures policy is in line with the recommendations of COVID-19 headquarters for protection against the COVID-19 pandemic in all countries in which the Group operates. Management will inform the investment public in a timely manner about any changes or impact on Group's operations, as prescribed in the guidelines and directives.

During the 3 rd quarter, divestiture transactions of the galvanizing segment was finalized. The transaction negatively affected the financial result, and its effect was shown under the item discontinued operations in the Income Statement and the assets and liabilities intended for sale in the Statement of Financial Position.

Regular Shares DLKV-R-A Included On Officially Market Zagreb Stock market Notice in accordance with Law A Market Capital

Indicators (in 000 kuna)		Dalekovod Group		Dalekovod Inc.
	I-IX/2019	I-IX/2020	Index	I-IX/2019	I-IX/2020	Index
Operating income	850.748	944.229	111	665.968	798.353	120
Sales Revenue	832.252	929.855	112	619.515	774.135	125
Operating Expenses	852.268	902.562	106	652.769	757.887	116
EBITDA	21.155	62.130	+40.975kn	29.868	57.301	+27.433kn
EBITDA margin	2,5%	6,6%		4,5%	7,2%
EBIT (s)	-1.520	41.667	+43.187kn	13.199	40.466	+27.267kn
Net operating profit	31.464	31.590	100	42.297	35.911	85
Loss from discontinued operations	-9.082	-51.302		-6.519	-47.719
Net income (loss)	22.381	(19.712)	-42.093	35.778	(11.809)	-47.587

Financial result for the period I-III quarter 2020

In accordance with international financial standards, the entries of the income statement and the statement of financial position of the Group in previous period i.e. in 2019 and in 2020 are adjusted for financial effect of said transaction i.e. discontinued operations.

The Group's operating income amounts to HRK 944.2 million and is higher by 11 percent compared to the same period of the previous year. Revenues from the group's sales amounted to HRK 929.9 million and increased by 12% compared to the same period of the previous year. EBITDA (Calculated as: "Operating income - Operating expenses + Depreciation") at the group level is HRK 62 million, which represents a growth of HRK 41 million compared to the same period of the previous year. EBITDA adjusted for one-time items (mainly related to the restructuring process) amounted to HRK 65 million. During reporting period, some members of the Group were entitled to support by CEI as assistance for companies that were affected by COVID-19 pandemic in total amount of HRK 3 million. Unlike previous years or quarters, the Group recorded higher EBITDA then the parent company in period from I-III quarter 2020. This is result of significant restructuring process in the production part of the group, i.e. in companies Proizvodnja MK d.o.o. and Proizvodnja OSO d.o.o. which, after several years, recorded positive result at the EBITDA level. Group's loss of Current Year amounts to HRK -19.7 million and consists of profit from regular business in the amount of HRK 31.6 million and loss from discontinued operations (related to the sale of the galvanizing segment) in the amount of HRK -51.3 million.

In the context of financial restructuring, the Group announced during July that it had signed a settlement with the largest single creditor from the Pre-Bankruptcy Settlement, HETA Asset Resolution Ltd. The settlement transferred the assets related to the galvanizing plant in Dugo Selo to the aforementioned financial creditor, who sold the assets to the final buyer NFS Cink d.o.o. a member of the Czech Signum Group. With this transaction, the Group significantly reduced the financial debt i.e. more than HRK 60 million.

Operating income of the parent company, Dalekovod d.d. (here below: Company) amountsto HRK 798 million and is higher by 20 percent compared to the same period of the previous year. EBITDA at the Company's level amounts to HRK 57 million, which represents a growth of HRK 27 million compared to the same period of the previous year. The loss of the current year consists of profits from regular operations in the amount of HRK 36 million and loss from discontinued operations (related to the sale of the galvanizing segment) in the amount of HRK -48 million.

In addition to impact of COVID-19 pandemic as mentioned above, it has had a significant impact on postponement of tenders. During the year, Company contracted deals worth about HRK 680 million, which is lower result than in the same period of the previous year. Company currently has several contracts in signing stage, worth over HRK 150 million. The current value of contracted deals is more than 1.5 billion kuna.

Company name		Operating income			ENITDA
(in 000 kuna)	I-IX/2019	I-IX/2020	Index	I-IX/2019	I-IX/2020	Change
Dalekovod Inc.	665.968	798.353	120	29.868	57.301	+27.433kn
Proizdovnja MK d.o.o.*		55543			(6.847)
Proizdodnja OSO d.o.o. *	160.533	51.615	64	(14.736)	8.412	+16.300kn
Dalekovod Projekt d.o.o.	26,704	22,619	82	436	315	-121kn
Cinčaonica Usluge d.o.o.**	30.313	22.345	74	3.000	(10.653)	-13.653kn
Dalekovod EMU d.o.o.	2.320	2.578	111	537	409	-128kn
Other affiliates	37.115	81.889	221	(699)	2.125	+2.824kn
Elimination	(72,205))	(90,713))	119	2.749	11.069	+8.320kn
Total Group	850.748	944.229	111	21.155	62.131	+40.976kn

Overview of the operations of key segments of the Group

*On 1 March 2020 in the company Proizvodnja MK and OSO d.o.o. there is an allocation of the economic unit related to production of suspension and jointing equipment. The stated economic unit continues its business as a separate business entity Proizvodnja OSO d.o.o. (OIB: 55411035652), and the company Proizvodnja MK and OSO d.o.o. changes its name to Proizvodnja MK d.o.o.

** Business discontinued

The Energy sector (construction of transmission lines and substations) recorded a 29% increase in revenues in the first three quarters compared to the same period last year, with total revenues amounting to HRK 698 million. Most of the revenues were generated on the foreign market, i.e. 91%. The high and low voltage department is currently carrying out works on 26 large projects (6 in Norway, 10 in Sweden, 5 in the region and 5 in Croatia) and 17 smaller ones, and the substation department on 6 large and 4 smaller ones. During the first three quarters of 2020, 10 new large projects were contracted in the high and low voltage department, which include part of smaller projects amounting to approximately HRK 600 million, and 5 projects in the substation department amounting to HRK 26 million, and a total value of the Energy sector in the amount of HRK 863million.

The Infrastructure sector recorded a 2% increase in revenues in the first three quarters compared to the same period of the previous year, and total revenues this year amounted to HRK 84 million. The largest number of projects relates to HŽ infrastruktura investor, followed by HAC and the City of Zagreb. Currently, 9 construction sites are active, and during the current year 7 projects have been completed. Four projects in the amount of HRK 52 million have been contracted, while 3 projects are in the phase of signing with an approximate value of HRK 150 million.

Production segment (Proizvodnja MK d.o.o. and Proizvodnja OSO d.o.o.) was marked during the reporting period by the separation of Proizvodnja MK i OSO d.o.o. on two companies, Proizvodnja MK d.o.o. and Proizvodnja OSO d.o.o. Separation enabled more efficient implementation of separate development strategies for a particular segment with the aim of increasing the efficiency of the operations of both companies. The business result of both companies during the first three quarters is a confirmation of the restructuring strategy and processes carried out during this and previous year. Looking at both companies during the first three quarters, there was a 36.3% drop in revenues. Revenues for both companies totalled HRK 107.2 million. A significant decrease was recorded in the company Proizvodnja MK d.o.o., and the same resulted from change of company's development strategy, i.e. the targeted reduction of business activities while reducing the number of employees and focusing on the profitability. The EBITDA of both companies together, amounted to HRK 1.6 million and was higher by HRK 16.3 million compared to the same period of the previous year.

Design segment related to the activities of Dalekovod Projekt d.o.o., recorded a 15 percent decrease in operating revenues compared to the same period of the previous year and amounted to HRK 22.6 million. The impact of the COVID-19 pandemic has strongly affected this segment of the Group and in context of major tender postponements.

Dalekovod Group		Dalekovod Group			Dalekovod Inc.
(in 000 kn)	31.12.2019	30.09.2020	Index	31.12.2019	30.09.2020
Assets	946.633	906.490	96	818.522	813.058
Fixed Asset	312.228	325.170	104	339.327	349.877
Current assets	634.405	581.320	92	479.195	463.181
Liabilities	864.119	842.873	98	788.902	795.247
Reservations	35.798	31.729	89	31.468	27.372
Long-term liabilities	308.449	290.646	94	316.705	300.507
Short-term liabilities	519.872	520.498	100	440.729	467.368
Capital	82.514	63.617	77	29.620	17.811

Financial position of the Group

The Group's assets decreased by 4 per cent compared to December 31, 2019, while liabilities decreased by 2 per cent. The decrease in assets and liabilities was mainly due to the sale of assets related to the galvanizing segment, which is shown on the inventory item (subcategory: fixed assets intended for sale) and liabilities (liabilities on the basis of fixed assets intended for sale). Since the financial effect of the sales of the galvanizing segment is negative and, as shown in the profit and loss account in part discontinued operations, Group capital decreased by 23 percent and amounted to HRK 63.6 million (due to the realized loss in the amount of HRK 19.7 million). Among other changes in financial position, on the asset side, there is a growth in receivables against customers in the amount of over HRK 60 million, due to the aforementioned growth of business activities during the first nine months of 2020. Despite group's difficult financial position stemming from the high level of debt and operations in difficult liquidity, liabilities to suppliers during 2020 decreased by HRK 16 million.

The Company recorded a decrease of 1 percent and HRK 5.5 million respectively because of the sale of assets related to the galvanizing segment. The Capital of the Company decreased by 40 percent and amounts to HRK 17.8 million due to the realized loss in the amount of HRK -11.8 million.

Type of financial debt (in		Dalekovod Group			Dalekovod Inc.
000 kunas)	31.12.2019	30.09.2020	Index	31.12.2019	30.09.2020	Index
Senior debt	212.875	213.914	100	212.875	213.914	100
Lease obligations	101.324	45.549	45	100.985	45.226	45
Bonds	16.871	15.691	93	22.261	20.712	93
Mezzanine	29.516	30.414	103	33.721	34.760	103
Discerning debt	67.239	66.179	98	67.239	66.179	98
Other	10.822	19.089	176	14.724	23.192	158
Total financial debt	438.647	390.836	89	451.805	403.983	89
Cash	61.115	38.431	63	49.553	30.271	61
Net financial debt	377.532	352.405	93	402.252	373.712	93
Financial debt*	341.892	294.243	86	350.845	303.044	86

*Financial debt adjusted for debt that has no impact on the company's operating cash flows: (i) Mezzanine's debt (ii) Discerning debt.

The Total Financial Debt of the Group as of September 30, 2020 is HRK 390.8 million and is lower by HRK 47.8 million compared to HRK 31.12.2019. The reduction of financial debt is largely due to the settlement with HETA Asset Resolution d.o.o. in context of the sale of galvanizing segment. Adjusted financial debt as of September 30, 2020 is HRK 294.2 million and lower by HRK 47.6 million compared to HRK 31.12.2019. Group management, in the context of continuation of the financial restructuring process with key financial creditors, negotiates the regulation of the status of currently due financial liabilities, i.e. the continuation of the debt restructuring from pre-bankruptcy settlement.

Regular Shares DLKV-R-A Included On Officially Market Zagreb Stock market Notice in accordance with Law A Market Capital

In reporting period, I-IX 2020, the consolidated reports of Dalekovod group include:

• •Dalekovod d.d., Croatia
• •Proizvodnja MK d.o.o., Croatia
• Proizvodnja OSO d.o.o., Croatia
• •Cinčaonica Usluge d.o.o., Croatia
• •Dalekovod Projekt d.o.o., Croatia
• •Dalekovod EMU d.o.o., Croatia
• •Dalekovod Adria d.o.o., Croatia
• •EL-RA d.o.o., Croatia
• •Dalekovod Mostar d.o.o., Bih
• •Dalekovod Ljubljana d.o.o., Slovenia
• •Norge AS transmission line, Norway
• •Dalekovod Polska S.A., Poland (sold in Q3/2020)
• •Dalekovod Ukraine d.o.o., Ukraine

Management of Dalekovod d.d.

__________________________

Tomislav Rosandić

__________________________ __________________________

Ivan Kurobasa Đuro Tatalović

CEO Member of the Board

Member of the Board Member of the Board

DECLARATION

Based on Article 410(1) and Article 407(2) of paragraph 3 and paragraph 3. Responsible persons for drafting the report: Tomislav Rosandić – CEO, Hrvoje Išek – Member of the Board, Ivan Kurobasa – Member of the Board, Đuro Tatalović – Member of the Board, give

D E C L A R A T I O N

To our best knowledge, the financial statements for the reporting period are compiled using the appropriate financial reporting standards, give a complete and true account of the assets and liabilities, and the result of Dalekovod's operations, as well as the companies involved in the consolidation with a brief review of the causative agents of the data expressed. The financial statements have not been audited.

Management of Dalekovod d.d.

__________________________

Tomislav Rosandić CEO Member of the Board

Ivan Kurobasa Đuro Tatalović

__________________________ __________________________

Member of the Board Member of the Board

GROUP FINANCIAL REPORT FOR I-IX 2020

Statement of financial position

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

			Same period of the previous	Current period
Item	AOP code		year
		Cumulative	Quarter	Cumulative	Quarter
T	$\overline{2}$	$\overline{\mathbf{3}}$	$\overline{4}$	5	$\boldsymbol{6}$
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	134 135	173.665.653 100.198.697	69.879.993	245.057.677	78.519.787 10.123.540
b) Costs of goods sold	136		18.501.271	43.273.390
c) Other external costs 3 Staff costs (ADP 138 to 140)	137	242.996.116 221.452.623	102.308.613 81.540.573	252.265.498 232.453.341	108.606.178 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	4	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		L,	163.141	(71.722)
b) current assets other than financial assets	145	×,	ł,	163.141	(71.722)
7 Provisions (ADP 147 to 152)	146	983.735	2.727
c) Provisions for ongoing legal cases	149	983.735	2.727	à,	÷,
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	2.806.197	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
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	$\bar{z}$	31.590.030	17.336.004
2 Loss for the period (ADP 182-179)	185		(5.143.649)
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-tax 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)	191	(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-tax profit (ADP 192)	193	22.609.861	(7.624.490)
2 Pre-tax loss (ADP 192)	194	$\bar{z}$	ä,	19.374.112	25.524.418
XVII INCOME TAX (ADP 182+189) XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 192-195)	195 196	228.634 22.381.227	36.162 (7.660.652)	337.815 (9.848.930)	40.487 (25.564.906)
1 Profit for the period (ADP 192-195)	197	22.381.227	ä,
2 Loss for the period (ADP 195-192)	198	$\sim$	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	÷.		×,	÷.
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)	214	20.804.285	(7.424.597)	(18.897.120)	(24.907.143)
APPENDIX to the Statement on comprehensive income (to be filled in by undertakings that		$\overline{\phantom{a}}$	u	×
VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 216+217) I Attributable to owners of the parent	215 216	20.804.285 20.804.285	(7.424.597) (7.424.597)	(18.897.120) (18.897.120)	(24.907.143) (24.907.143)

Cash flow statement

Item	AOP code	Same period of the previous year	Current period
1	$\mathbf{2}$	3	4
Cash flow from operating activities
1 Pre-tax profit		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)	П	(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)
1 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		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

Regular Shares DLKV-R-A Included On Officially Market Zagreb Stock market Notice in accordance with Law A Market Capital

								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	Ioss brought	the business	owners of the	controlling) Tot
	AOP code	capital	reserves	reserves	shares	(deductible	reserves	Other reserves	reserves	forward	vear	parent	interest	-and
									$10-10$		15 1	$+ 8$ do 15)
Current period
1 Balance on the first day of the current business year	27	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
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	30	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
5 Profit/loss of the period	31										(19.711.927)	(19.711.927)		(19
6 Exchange rate differences from translation of foreign operations	32							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	188,407	31.404.507	40.706.979	(365.957.988)	(19.711.927)	63.617.108		63
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
II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP 31+5)	51							814.807			(19.711.927)	(18.897.120)		(18)
III TOAMSACTIONS WITH OWNERS IN THE CHRISTIAN BERIOD BECOGNISED DIE	E9.									3 350 888	12.250.0201

Statement of capital changes for the current period

Statement of capital changes 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	13												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)			$\sim$	(1.661.448)	693.731	(967.717)
II COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD (ADP	25							(1.661.448)		$\sim$	3.250.989	1.589.541	693.731	2.283.272
III TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD RECOGNISED	26		(2.094.310)							(119.570.198)	119.570.198	(2.094.310)		(2.094.310)

FINANCIAL REPORT OF THE COMPANY FOR I-IX 2020

Statement of financial position

Item	ADP code	Last day of the preceding business year	At the reporting date of the current period
	$\overline{2}$	3	4
AKTIVA
A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID	I	÷
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	à.
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

Item	AOP	year	Same period of the previous		Current period
	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	136	201.593.812	81.639.768	231.085.606	99.120.134
3 Staff costs (ADP 138 to 140)	137	164.970.439	62.664.528	184.604.996	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 5 Other costs	141 142	16.668.548 9.752.740	5.135.905 3.438.387	16.835.585 12.386.108	5.870.285 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)	177	710.736.125	251.180.690	810.305.685	311.927.042
X TOTAL EXPENDITURE (ADP 131+165+175 + 176)	178	668.438.938	249.910.094	774.395.048	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 IV NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 203-212)	212 213	- -	- -	- -	- -
V COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 202+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	-	-	-	-

Regular Shares DLKV-R-A Included On Officially Market Zagreb Stock market Notice in accordance with Law A Market Capital

Cash flow statement

		Same period of the previous
Item	AOP code	year	Current period
ı	$\overline{2}$	3	4
1 Pre-tax profit		35.778.492	(11.808.547)
2 Adjustments (ADP 003 to 010):	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
adjustment of financial assets	5	(38.152.410)	1.770.824
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

Regular Shares DLKV-R-A Included On Officially Market Zagreb Stock market Notice in accordance with Law A Market Capital

Statement of capital changes 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
								10	14	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	86.141.670	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
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						86.141.670 11.486.600 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								$\sim$	(11.808.547)	11.808.547	11.808.547
III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED DIF	52							$\sim$	5.800.749	(5.800.749)		$\sim$

Statement of capital changes 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
											16 (3 do 6 - 7
								10	14	15	$+ 8$ do 15)	$18(16+17)$
Previous period
1 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		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	$\sim$								5.800.749	5.800.749	5.800.749
III TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD RECOGNISED	26	$\sim$	(2.094.310)							$\sim$	(2.094.310)	(2.094.310)

21

NOTES TO FINANCIAL STATEMENTS

Basic information

Management

Tomislav Rosandić – CEO Hrvoje Išek – Member of the Board Ivan Kurobasa – Member of the Board Đuro Tatalović – Member of the Board

SUPERVISORY BOARD

Dinko Novoselec - President of SB Hrvoje Markovinović - member Toni Đikić - member Gordan Kuvek - member Dražen Buljić - member Damir Sertić - member Mladen Gregović - member

Dalekovod Joint Stock Company for Engineering, Production and Construction

Marijana Čavića 4, 10 000 Zagreb, Croatia, 10001 Zagreb, P.P. 128 URL: www.dalekovod.hr, www.dalekovod.com E-mail: dalekovod@dalekovod.hr Share capital: 247.193.050,00 kn. Number of shares: 24,719,305 IBAN: HR8323600001101226102 ZABA Zagreb MBS: 080010093, Commercial Court in Zagreb MB: 3275531 OIB: 47911242222 Industry code: 4222 (Construction of power and telecommunication lines)

Shareholder structure (as of September 30, 2020):

Konsolidator Ltd.	15.000.000
Individuals	6.858.638
Financial institutions	2.049.701
Other	712.125
Own shares	98.841
Total	24.719.305

Acquisition, merger, sale, foundation

With the date 1 March 2020 in the company Proizvodnja MK and OSO d.o.o. there is an allocation of the economic unit related to the production of suspension and connecting equipment. This economic unit continues its business as a separate business entity Proizvodnja OSO d.o.o. (OIB: 55411035652), and the company Proizvodnja MK and OSO d.o.o. changes its name to Proizvodnja MK d.o.o. 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. With the settlement, HETA acquired the lease assets and sold it to the final buyer, NFS Cink d.o.o. to a member of the Czech Signum Group.

Uncertainty

In the first nine months of 2020, there were no identified items of dubious and disputed claims affecting business continuity.

Products and services

Dalekovod Inc. Over time, he specialized in performing turnkey contracts in the following areas:

• electricity facilities, especially transmission lines from 0.4 to 750 kV
• transformer stations of all levels and voltage levels up to 500 kV
• air, underground and underwater cables up to 110 kV
• telecommunication facilities, all types of networks and antennas
• production of suspension and connecting equipment for transmission lines and substations from 0.4 to 750 kV
• manufacture and installation of all metal parts for roads, especially for road lighting,

guardrails and traffic signals, tunnel lighting and traffic management

• electrification of railways and trams

Changes in accounting policies

There are no new accounting policies.