Dalekovod d.d.

Quarterly Report • Aug 27, 2021

DALEKOVOD D.D.

REPORT ON THE IMPLEMENTATION OF FINANCIAL RESTRUCTURING 30th IMPLEMENTATION REPORT (Q2 2021)

1. Balance sheets, income, and cash flow statements

The report was compiled in accordance with the provision of Art. 79, paragraph 4 of the Financial Operations and Pre-Bankruptcy Settlement Act. It refers, in all its contents, to the period from 1 January 2014 to 30 June 2021.

Pre-bankruptcy settlement (hereinafter "settlement") over the debtor Dalekovod d.d. Zagreb (hereinafter "the Company") was reached at the hearing before the Commercial Court in Zagreb on 29/01/2014 and it became final on 14/02/2014.

In accordance with the provisions of Article 79, paragraph 4 of the Law on Financial Operations and Pre-Bankruptcy Settlement, the report contains:

1. description of financial restructuring measures implemented and their impact on a debtor in terms of liquidity and solvency,

2. total amount of payment of creditors' claims, in the shares in which these claims were paid,

3. quarterly balance sheets, income statement, and cash flow statement,

4. statement by the debtor that he has not taken any action that would result in bringing the creditor into an unequal position.

2. Description of the financial restructuring measures implemented and their impact on the debtor in terms of liquidity and solvency and the total amount of payment of creditors' claims, in the shares in which these claims were paid

In the period from 14/02/2014 when the final decision on the pre-bankruptcy settlement came into force by 30/06/2021 the following financial restructuring measures have been implemented:

A) The share capital was reduced to cover the accumulated losses, and accordingly, the nominal value of the share was reduced from HRK 100 to HRK 10.

B) The conversion of part of the debt to creditors into the capital was carried out, 852,168 new shares were issued and thus the share capital of the Company was increased by HRK 8,521,680.

C) A recapitalization of HRK 150,000,000 was made by payment in cash to finance investments and the development of the company. The recapitalization was performed by the company Konsolidator d.o.o. at HRK 10 per share. 15,000,000 new shares were issued and the share capital was increased by HRK 150,000,000.

D) Recapitalization of HRK 59,998,720 was carried out by payment in cash for financing investments and development of the company. The recapitalization was carried out by the existing shareholders, with the exclusion of the pre-emptive right of shareholders holding the Company's shares issued for a cash investment based on the decision of the regular General Assembly of the Company dated 22/07/2013 under item 8 of the Agenda, at HRK 10 per share. 5,999,872 new shares were issued and the share capital was increased by HRK 59,998,720.

E) The process of selling shares in the company Dalekovod Professio d.o.o. has been initiated. for investment in renewable energy sources as one of the financial restructuring measures listed in the Settlement.

F) Following the terms of the Settlement, the Company's debt based on co-debt, joint and several guarantee or guarantee in its entirety and claims of other companies based on co-debt for the Company's obligations to third parties have been released.

G) Following the terms of the Settlement, the write-off of interest and fee liabilities was performed.

H) The fair value of long-term liabilities from the pre-bankruptcy settlement on 31/03/2014 was calculated. following International Accounting Standards and represents a one-time significant positive effect on the income statement, and the Company's balance sheet in the amount of HRK 223.8 million. The calculation of fair value will be performed quarterly and will be presented in future financial statements.

I) The payment of the first installment to suppliers was made by a one-time payment in cash. It included 20% of total debt to creditors of categories (j), (k), (l), (m), and (n), and according to Settlement it amounted to HRK 69.8 million.

J) On 31/03/2015 the first of 13 installments was paid to suppliers in a single payment in cash, which according to the Settlement amounts to a total of HRK 12.4 million.

K) On 30/06/2015 the second of 13 installments was paid to suppliers in a single payment in cash, which according to the Settlement amounts to a total of HRK 12.4 million.

L) On 30/09/2015 the third of 13 installments was paid to suppliers in a single payment in cash, which according to the Settlement amounts to a total of HRK 12.4 million.

M) On 30/12/2015 the fourth of 13 installments was paid to suppliers in a single payment in cash, which according to the Settlement amounts to a total of HRK 12.4 million.

N) On 31/03/2016 the fifth of 13 installments was paid to suppliers in a single payment in cash, which according to the Settlement amounts to a total of HRK 12.4 million.

O) On 30/06/2016 the sixth of 13 installments was paid to suppliers in a single payment in cash, which according to the Settlement amounts to a total of HRK 12.4 million.

P) On 30/09/2016 the seventh of 13 installments was paid to suppliers in a single payment in cash, which according to the Settlement amounts to a total of HRK 12.4 million.

Q) On 30/12/2016 the eighth of 13 installments was paid to suppliers by a one-time payment in cash, which according to the Settlement amounts to a total of HRK 12.4 million.

R) On 31/03/2017 the ninth of 13 installments was paid to suppliers in a single payment in cash, which according to the Settlement amounts to a total of HRK 12.4 million.

S) On 31/03/2017 the principal of senior debt to banks was paid in the total amount of HRK 4.8 million and interest on loans for the first quarter in the amount of HRK 2.2 million.

T) according to the Decision on Pre-Bankruptcy Settlement and Settlement of Claims of a category (h), claims based on commercial papers issued by the Debtor, and which part of the claims was settled by refinancing through the issue of bonds, Dalekovod d.d. is 14/02/2017 redeemed interest on security marked DLKV-O-302E in the nominal amount of EUR 0.12 per bond, ie according to the middle exchange rate of the CNB 7.462096 HRK / 1 EUR on 14/02/2017 which amounts to HRK 0.89545152 per bond, and interest on the security marked DLKV-O-302A in the nominal amount of HRK 0.12 per bond. Thus, Dalekovod d.d. reduced debt on issued bonds by HRK 3.0 million. The listing agent is Zagrebačka banka d.d. Zagreb.

U) On 01/03/2017 the payment of the contractual penalty was made due to the default of the Debtor of sale and transfer of business shares in the company Dalekovod Professio (following Art.212 of the Settlement) in total amount of HRK 3.7 million.

C) On 30/06/2017 the tenth of 13 installments was paid to suppliers in a single payment in cash, which according to the Settlement amounts to a total of HRK 12.4 million.

W) On 30/06/2017 2nd installment of principal of the senior debt to the banks was paid in the total amount of HRK 4.8 million.

X) All liabilities from the pre-bankruptcy settlement to financial institutions have been duly settled. Liabilities were paid based on interest on loans for the second quarter in the amount of HRK 2.5 million, and the basis of annuities on financial leasing of HRK 2.7 million. There are no overdue outstanding liabilities based on invoices issued from liabilities under PSN.

Y) On 29/09/2017 the eleventh installment of 13 installments was paid to suppliers in a single payment in cash, which according to the Settlement amounts to a total of HRK 12.4 million

Z) On 29/09/2017, 3rd installment of the principal of the senior debt to banks was paid in the total amount of HRK 4.8 million.

AA) All obligations from the pre-bankruptcy settlement to financial institutions have been duly settled. Liabilities were paid on basis of interest on loans for third quarter in the amount of HRK 2.5 million, and on basis of annuities on financial leasing in the amount of HRK 2.7 million. There are no overdue outstanding liabilities based on invoices issued from liabilities under PSN

BB) On December 29, 2017, the twelfth of 13 installments was paid to suppliers in a one-time payment in cash, which according to the Settlement amounts to a total of HRK 12.4 million.

CC) On 29/12/2017 fourth installment of the principal of the senior debt to banks was paid in the total amount of million HRK.

DD) All obligations from the pre-bankruptcy settlement to financial institutions have been duly settled. Liabilities were paid on basis of interest on loans for fourth quarter in the amount of HRK 2.5 million, and on basis of annuities on financial leasing in amount of HRK 2.7 million. There are no overdue outstanding liabilities based on invoices issued from liabilities under PSN.

EE) On 02/03/2018 payment of contractual penalty was made due to default of the Debtor of sale and transfer of business shares in company Dalekovod Professio (in accordance with Art. 212 of Settlement) in the total amount of HRK 3.7 million.

FF) On March 30, 2018, the thirteenth of 13 installments was paid to suppliers by a one-time payment into new ones, which according to the Settlement amounts to a total of HRK 12.4 million

GG) On 30/03/2018 the 5th installment of the principal of senior debt to banks was paid in the total amount of HRK 4.8 million

HH) All obligations from the pre-bankruptcy settlement to financial institutions have been duly settled. Liabilities were paid on the basis of interest on loans for the first quarter of 2018 in the amount of HRK 2.5 million, and on the basis of annuities on financial leasing in the amount of HRK 2.7 million. No outstanding liabilities based on issued invoices from liabilities under PSN

II) The 6th installment of the principal of senior debt to banks was paid in the total amount of HRK 4.8 million

JJ) All liabilities from pre-bankruptcy settlement to financial institutions have been duly settled. Liabilities were paid on basis of interest on loans for second quarter of 2018 in amount of HRK 2.37 million, and on basis of annuities on financial leasing in the amount of HRK 2.7 million. There are no overdue outstanding liabilities based on invoices issued from liabilities under PSN

KK) On 14 November 2018, all liabilities based on interest and principal of senior debt from the pre-bankruptcy settlement to financial institutions on loans for the third quarter of 2018 in the amount of HRK 7.2 million were settled, and on the basis of annuities on financial leasing in the amount of HRK 2.7 million.

LL) As of January 14, 2019, all liabilities based on interest and principal of senior debt from the pre-bankruptcy settlement to financial institutions on loans for the fourth quarter of 2018 in the amount of HRK 7.48 million were settled. All liabilities based on annuities on financial leasing in the amount of HRK 2.7 million for the reporting quarter have been settled.

MM) As of May 17, 2019, all liabilities based on interest and principal of senior debt from the pre-bankruptcy settlement to financial institutions on loans for the first quarter of 2019 in the amount of HRK 7.04 million were settled. Liabilities from annuities on financial leasing in the amount of HRK 1.8 million for the reporting quarter were settled.

NN) In the period from 15/01/2019 to 25/02/2019, a payment was made in the amount of HRK 59.47 million. The stated amount of funds was paid to the mezzanine creditors on the basis of the sale of Dalekovod Professio in accordance with pre-bankruptcy settlement

OO) On 14/02/2020, bonds DLKV-O-302A and DLKV-O-302A were redeemed in amount of principal and interest HRK 2.54 mil.

PP) 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. Settlement reduced Groups financial debt more than HRK 61 million. With the settlement, the debt on the basis of the 7.4.a claim under a lease agreement in amount greater than HRK 2 million was fully regulated.

RR) On 12 February 2021, DLKV-O-302A and DLKV-O-302A bonds were redeemed in total amount of principal and interest of HRK 2.55 million.

SS) As of 15 August 2021, Company and Group have due liabilities based on regular interest and principal of senior debt from prebankruptcy settlement in amount of HRK 63.39 mil.

Source: Business results of Dalekovod Group and Dalekovod d.d. for the period I -VI2021

Financial position report

Item	AOP code	Last day of the precending business year	At th reporting date of the current period
ı	$\overline{2}$	3	4
ASSETS
A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID	001
B) FIXED ASSETS (ADP $003+010+020+031+036$ )	002	329, 131, 110	334,619,857
I INTANGIBLE ASSETS (ADP 004 to 009)	003	4,831,284	4,158,044
II TANGIBLE ASSETS (ADP 011 to 019)	010	254,778,531	263,913,396
III FIXED FINANCIAL ASSETS (ADP 021 to 030)	020	9,473,799	7,731,218
IV RECEIVABLES (ADP 032 to 035)	031	60,047,496	58,817,199
V DEFERRED TAX ASSETS	036
C) CURRENT ASSETS (ADP $038+046+053+063$ )	037	579,501,010	620,483,546
I INVENTORIES (ADP 039 to 045)	038	73,240,563	74,099,638
II RECEIVABLES (ADP 047 to 052)	046	432,026,551	517,508,953
III CURRENT FINANCIAL ASSETS (ADP 054 to 062)	053	10,133,765	5,550,287
IV CASH AT BANK AND IN HAND	063	64,100,131	23,324,668
D) PREPAID EXPENSES AND ACCRUED INCOME	064	14,389,006	11,599,898
E) TOTAL ASSETS (ADP $001+002+037+064$ )	065	923,021,126	966,703,301
OFF-BALANCE SHEET ITEMS	066	449, 171, 244	445,978,659
LIABILITIES			$\sim$
A) CAPITAL AND RESERVES (ADP 068 to $070+076+077+081+084+087$ )	067	54,749,610	71,373,123
I INITIAL (SUBSCRIBED) CAPITAL	068	247,193,050	247,193,050
II CAPITAL RESERVES	069	86,141,670	86,141,670
III RESERVES FROM PROFIT (ADP $071+072-073+074+075$ )	070	74,182,289	76,633,770
IV REVALUATION RESERVES	076	40,706,979	40,706,979
V FAIR VALUE RESERVES (ADP 078 to 080)	077
VI RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 082-083)	083	(365, 957, 988)	(393, 474, 378)
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 085-086)	086	(27, 516, 390)	14,172,032
VIII MINORITY (NON-CONTROLLING) INTEREST	089
B) PROVISIONS (ADP 089 to 094)	090	33, 361, 333	31,398,744
C) LONG-TERM LIABILITIES (ADP 096 to 106)	097	285,300,252	283,535,014
D) SHORT-TERM LIABILITIES (ADP 108 to 121)	109	505,811,255	541,660,241
E) ACCRUALS AND DEFERRED INCOME	124	43,798,677	38,736,179
F) TOTAL - LIABILITIES (ADP $067+088+095+107+122$ )	125	923,021,127	966,703,301
G) OFF-BALANCE SHEET ITEMS	126	449, 171, 244	445,978,659

Profit and loss report

	AOP		Same period of the previous	Current period
Item	code		year
		Cumulative	Quarter	Cumulative	Quarter
т	$\overline{2}$	$\overline{\mathbf{3}}$	$\overline{4}$	5	$\ddot{\phantom{a}}$
I OPERATING INCOME (ADP 126 to 130)	001	584,048,780	313,405,271	748,656,721	465,102,949
2 Income from sales (outside group)	003	573,927,381	306,536,212	743,553,927	461,545,660
5 Other operating income (outside the group)	006	10,121,399	6,869,059	5,102,794	3,557,289
II OPERATING EXPENSES (ADP 132+133+137+141+142+143+146+153)	007	562,361,824	303,919,011	724,295,787	447,441,297
1 Changes in inventories of work in progress and finished goods	008	2,276,563	2,265,346	(641, 867)	5,812,941
2 Material costs (ADP 134 to 136)	009	343,347,060	183,052,429	494,465,496	312,375,312
a) Costs of raw materials and consumables	010	166,537,890	92,328,514	86,724,032	42,210,067
b) Costs of goods sold	011	33,149,850	13,502,706	178,894,834	98,148,033
c) Other external costs	012	143,659,320	77,221,209	228,846,630	172,017,212
3 Staff costs (ADP 138 to 140)	013	140,650,238	77,846,051	140,590,632	78,492,178
a) Net salaries and wages	014	109,574,970	62,079,879	107,533,067	61,025,025
b) Tax and contributions from salary costs	015	18,650,820	9,437,155	19,444,332	10,124,041
c) Contributions on salaries	016	12,424,448	6,329,017	13,613,234	7,343,112
4 Depreciation	017	13,376,200	6,777,154	15,649,315	7,974,863
5 Other costs	018	10,915,662	5,950,299	13,075,303	8,225,384
6 Value adjustments (ADP 144+145)	019	234,863	16,429	4,497,769	4,497,769
b) current assets other than financial assets	021	234,863	16,429	4,497,769	4,497,769
8 Other operating expenses	029	51,561,238	28,011,303	56,659,140	30,062,851
III FINANCIAL INCOME (ADP 155 to 164)	030	3,343,123	(3, 196, 852)	4,508,282	2,534,561
7 Other interest income	037	391,547	241,520	224,762	114,436
8 Exchange rate differences and other financial income	038	2,762,316	(3,549,208)	4,283,519	2,420,124
10 Other financial income	040	189,259	110,835	×
IV FINANCIAL EXPENSES (ADP 166 to 172)	041	12,656,605	(4, 813, 352)	14,530,874	5,645,425
3 Interest expenses and similar expenses	044	5,749,337	4,304,825	7,681,536	4,841,906
4 Exchange rate differences and other expenses	045	6,907,267	(9, 118, 178)	6,849,338	803,519
IX TOTAL INCOME (ADP $125 + 154 + 173 + 174$ )	053	587,391,902	310,208,418	753,165,003	467,637,510
X TOTAL EXPENDITURE (ADP 131+165+175 + 176)	054	575,018,429	299, 105, 659	738,826,661	453,086,722
XI PRE-TAX PROFIT OR LOSS (ADP 177-178)	055	12,373,474	11,102,760	14,338,341	14,550,787
1 Pre-tax profit (ADP 177-178)	056	12,373,474	11,102,760	14,338,341	14,550,787
XII INCOME TAX	058	297,327	77,005	85,126	45,872
XIII PROFIT OR LOSS FOR THE PERIOD (ADP 179-182)	059	12,076,147	11,025,755	14,253,216	14,504,916
1 Profit for the period (ADP 179-182)	060	12,076,147	11,025,755	14.253.216	14,504,916
XIV PRE-TAX PROFIT OR LOSS OF DISCONTINUED OPERATIONS (ADP 187-18	062	(6, 223, 169)	(1,020,207)	(81, 184)	(72, 444)
2 Pre-tax loss on discontinued operations	064	6,223,169	1,020,207	81,184	72,444
XV INCOME TAX OF DISCONTINUED OPERATIONS	065
2 Discontinued operations loss for the period (ADP 189-186)	067	(6, 223, 169)	(1,020,207)	(81, 184)	72,444
XVI PRE-TAX PROFIT OR LOSS (ADP 179+186)	068	6,150,304	10,082,552	14,257,158	14,478,345
1 Pre-tax profit (ADP 192)	069	6,150,304	10,082,552	14,257,158	14,478,345
XVII INCOME TAX (ADP 182+189)	071	297,327	77,005	85,126	45,872
XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 192-195)	072	5,852,977	10,005,547	14,172,032	14,432,473
1 Profit for the period (ADP 192-195)	073	5,852,977	10,005,547	14,172,032	14,432,473
XIX PROFIT OR LOSS FOR THE PERIOD (ADP 200+201)	075	5,852,977	10,005,547	14,172,032	14,432,473
I Attributable to owners of the parent	076	5,852,977	10,005,547	14,172,032	14,432,473
STATEMENT OF OTHER COMPRHENSIVE INCOME (to be filled in by undertakings subject to IFRS)
I PROFIT OR LOSS FOR THE PERIOD	078	5,852,977	10,005,547	14,172,032	14,432,473
II OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX (ADP 204 to 211)	079	157,044	(87,972)	2,451,481	(829, 461)
1 Exchange rate differences from translation of foreign operations	088	157,044	(87, 972)	2,451,481	(829, 461)
V NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 203-212)	097	157,044	(87,972)	2,451,481	(829, 461)
VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 202+213)	098	6,010,021	9,917,575	16,623,513	13,603,011
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)	099	6,010,021	9,917,575	16,623,513	13,603,011
	100	6.010.021	0017575	16 693 513	13,603,011

Cash flow report

Item	AOP code	Same period of the previous year	Current period
ı.	$\overline{2}$	3	4
Cash flow from operating activities
1 Pre-tax profit	1	6,150,304	14,257,158
2 Adjustments (ADP 003 to 010):	$\overline{2}$	30,437,375	28,779,776
a) Depreciation	3	16,302,100	15,649,315
c) Gains and losses from sale and unrealised gains and losses and value adjustment of financial assets	5	1,590,693
d) Interest and dividend income	6	(391, 588)	(224, 762)
e) Interest expenses	7	7,385,180	6,257,991
g) Exchange rate differences (unrealised)	9	5,550,990	2,599,463
h) Other adjustments for non-cash transactions and unrealised gains and losses	10		4,497,769
I Cash flow increase or decrease before changes in working capital (ADP 001+002)	П	36,587,679	43,036,934
3 Changes in the working capital (ADP 013 to 016)	12		$(32,008,938)$ $(71,381,042)$
a) Increase or decrease in short-term liabilities	13	(3,192,082)	16,713,257
b) Increase or decrease in short-term receivables	14	28,769,429	(90, 248, 926)
c) Increase or decrease in inventories	15	5,161,212	(859, 075)
d) Other increase or decrease in working capital	16	(62, 747, 497)	3,013,702
II Cash from operations (ADP 011+012)	17	4,578,741	(28, 344, 109)
4 Interest paid	18	(2,954,390)	(1, 151, 780)
5 Income tax paid	19	5,337,314	(2, 367, 642)
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019)	20	6,961,665	(31, 863, 531)
Cash flow from investment activities
1 Cash receipts from sales of fixed tangible and intangible assets	21	3,219	61,036
3 Interest received	23	165	268,755
5 Cash receipts from repayment of loans and deposits	25	92,707	7,147,315
6 Other cash receipts from investment activities	26	3,600,046
III Total cash receipts from investment activities (ADP 021 to 026)	27	3,696,137	7,477,106
1 Cash payments for the purchase of fixed tangible and intangible assets	28	(8,891,737)	(2,955,240)
3 Cash payments for loans and deposits for the period	30	(39, 500)	(6,696,136)
IV Total cash payments from investment activities (ADP 028 to 032)	33		$(8,931,237)$ $(9,651,376)$
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033)	34		$(5,235,100)$ $(2,174,270)$
Cash flow from financing activities
3 Cash receipts from credit principals, loans and other borrowings	37	10,403,787
V Total cash receipts from financing activities (ADP 035 to 038)	39	10,403,787
1 Cash payments for the repayment of credit principals, loans and other borrowings and debt financial	40	(4,380,629)	(4,919,926)
2 Cash payments for dividends	41	(22, 316)
3 Cash payments for finance lease	42	(3,072,274)	(1,680,305)
4 Cash payments for the redemption of treasury shares and decrease in initial (subscribed) capital	43	(160, 356)
5 Other cash payments from financing activities	44		(137, 431)
VI Total cash payments from financing activities (ADP 040 to 044)	45	(7,635,575)	(6, 737, 662)
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045)	46	2,768,212	(6,737,662)
D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP 020+034+046+047)	48	4,494,777	(40, 775, 463)
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	49	61,519,308	64,100,131
F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD(ADP 048+049)	50	66,014,085	23,324,668

Report on changes in capital for the current period

			Attributable to owners of the parent
					Reserves	Treasury						Total	(non-
Item		Initial			for	shares and						Retained profit Profit/loss for attributable to controlling
	A OP	(subscribed)	Capital	Legal	treasury	holdings	Statutory	Other	Revaluation		/ loss brought the business	owners of the
		capital	reserves	reserves	shares	(deductibl	reserves	reserves	reserves	forward	year	parent		interest Total capital and reserves
											$\overline{17}$	$+8$ do 17)		$18(16+17)$
Current period
I Balance on the first day of the current business year	28	247,193,050 86,141,670 11,652,410 8,465,950 8,465,950 32,188,407 30,341,472							40,706,979	(365, 957, 988)	(27,516,390)	54,749,610		54,749,610
2 Changes in accounting policies
3 Correction of errors
4 Balance on the first day of the current business year (restated) (ADP 2	31	247,193,050 86,141,670 11,652,410 8,465,950 8,465,950 32,188,407						30,341,472	40,706,979	(365, 957, 988)	(27,516,390)	54,749,610		54,749,610
5 Profit/loss of the period	32										14,172,032	14,172,032		14,172,032
6 Exchange rate differences from translation of foreign operations								2,451,481				2,451,481		2,451,481
22 Transfer to reserves according to the annual schedule										(27, 516, 390)	27,516,390
24 Balance on the last day of the previous business year reporting period	51	247,193,050 86,141,670 11,652,410 8,465,950 8,465,950 32,188,407						32.792.953		(393.474.378)	14,172,032	71,373,123		71,373,123
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	52							2,451,481				2,451,481		2,451,481
II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP 3)	53							2,451,481			14,172,032	16,623,513		16,623,513
III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED	54									(27.516.390)	27.516.390	$\sim$

Report on changes in capital for the previous period

			Attributable to owners of the parent
Item	AOP code	Initial subscribed capital	Capital reserves	Legal reserves	Reserves to treasury shares	Treasury shares an holdings deductible item)	Statutory reserves	Other reserves	Revaluation reserves	Retained profit / loss brought forward	Profit/loss for the business year	Total attributable to owners of the parent	Minority (non- controlling interest	Total capital and reserves
										16	17 2	18 (3 do 6 - 7 $+8$ do 17)	17	$18(16+17)$
Previous period
1 Balance on the first day of the previous business year		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
2 Changes in accounting policies
3 Correction of errors
4 Balance on the first day of the previous business year (restated) (ADP (		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	$\sim$	82,514,228
5 Profit/loss of the period											(27, 516, 390)	(27, 516, 390)		(27, 516, 390)
6 Exchange rate differences from translation of foreign operations								(248, 228)				(248, 228)		(248, 228)
22 Transfer to reserves according to the annual schedule	22									3,250,989	(3,250,989)
24 Balance on the last day of the previous business year reporting period	24	247,193,050 86,141,670 11,652,410 8,465,950 8,465,950 32,188,407 30,341,472							40,706,979	(365, 957, 988)	(27,516,390)	54,749,610		54,749,610
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	25							(248, 228)				(248, 228)	$\sim$	(248, 228)
II COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD (ADP	26							(248, 228)			(27,516,390)	(27,764,618)	$\sim$	(27,764,618)
III TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD	27									3,250,989	(3,250,989)

Company financial report for I - VI2021 period

Financial position report

Item	AOP code	Last day of the precending business year	At th reporting date of the current period
	$\bf{2}$	3	4
ASSETS
A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID	001	٠
B) FIXED ASSETS (ADP 003+010+020+031+036)	002	352,620,580	360,063,711
I INTANGIBLE ASSETS (ADP 004 to 009)	003	2,922,549	2,327,809
II TANGIBLE ASSETS (ADP 011 to 019)	010	232,064,683	242,928,515
III FIXED FINANCIAL ASSETS (ADP 021 to 030)	020	57,585,852	55,990,188
IV RECEIVABLES (ADP 032 to 035)	031	60,047,496	58,817,199
V DEFERRED TAX ASSETS	036
C) CURRENT ASSETS (ADP $038 + 046 + 053 + 063$ )	037	463,400,901	489,857,160
I INVENTORIES (ADP 039 to 045)	038	7,679,608	12,083,048
II RECEIVABLES (ADP 047 to 052)	046	394,254,056	449,100,367
III CURRENT FINANCIAL ASSETS (ADP 054 to 062)	053	10,662,167	10,085,734
IV CASH AT BANK AND IN HAND	063	50,805,070	18,588,011
D ) PREPAID EXPENSES AND ACCRUED INCOME	064	11,634,590	8,933,997
E) TOTAL ASSETS (ADP $001+002+037+064$ )	065	827,656,071	858,854,868
OFF-BALANCE SHEET ITEMS	066	436,201,104	430,501,866
LIABILITIES
A) CAPITAL AND RESERVES (ADP 068 to 070+076+077+081+084+087)	067	19,607,832	25,888,210
I INITIAL (SUBSCRIBED) CAPITAL	068	247,193,050	247,193,050
II CAPITAL RESERVES	069	86,141,670	86,141,670
III RESERVES FROM PROFIT (ADP 071+072-073+074+075)	070	43,675,007	43,675,007
IV REVALUATION RESERVES	076	40,706,979	40,706,979
V FAIR VALUE RESERVES (ADP 078 to 080)	077
VI RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 082-083)	083	(388,097,152)	(398, 108, 874)
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 085-086)	086	(10, 011, 722)	6,280,378
VIII MINORITY (NON-CONTROLLING) INTEREST	089
B) PROVISIONS (ADP 089 to 094)	090	30,030,231	28,067,642
C) LONG-TERM LIABILITIES (ADP 096 to 106)	097	293,322,453	291,442,958
D) SHORT-TERM LIABILITIES (ADP 108 to 121)	109	442,178,144	475,993,390
E) ACCRUALS AND DEFERRED INCOME	124	42,517,410	37,462,668
F) TOTAL - LIABILITIES (ADP 067+088+095+107+122)	125	827,656,070	858,854,868
G) OFF-BALANCE SHEET ITEMS	126	436,201,104	430,501,866

Profit and loss report

Item	AOP	Same period of the previous year		Current period
	code	Cumulative	Quarter	Cumulative	Quarter
	$\overline{2}$	$\overline{\mathbf{3}}$	4	5	$\ddot{\mathbf{6}}$
I OPERATING INCOME (ADP 126 to 130)	001	485,545,197	262,476,343	560,537,956	357,173,740
I Income from sales with undertakings within the group	002	4,741,344	(438, 475)	102.962.192	56,906,113
2 Income from sales (outside group)	003	468,983,598	256,912,378	444,653,679	292,041,140
4 Other operating income with undertakings within the group	005	9,582,971	5,444,986	8,320,462	3,443,674
5 Other operating income (outside the group)	006	2,237,284	557,454	4,601,623	4,782,813
II OPERATING EXPENSES (ADP 132+133+137+141+142+143+146+153)	007	460,184,033	256,299,534	547,066,062	349,278,263
2 Material costs (ADP 134 to 136)	009	289,887,112	162,064,792	361,668,361	242,503,367
a) Costs of raw materials and consumables	010	153,655,537	84,846,661	70,793,978	39,048,974
b) Costs of goods sold	011	4,866,597	1,821,751	162,655,296	128,950,347
c) Other external costs	012	131,364,978	75,396,380	128,219,087	74,504,046
3 Staff costs (ADP 138 to 140)	013	108,826,001	61,634,499	110,808,909	63,425,051
a) Net salaries and wages	014	89,665,112	51,851,297	88,875,955	51,612,715
b) Tax and contributions from salary costs	015	11,592,500	5,904,493	14,094,090	8,318,768
c) Contributions on salaries	016	7,568,389	3,878,709	7,838,864	3,493,568
4 Depreciation	017	10,965,300	5,530,577	13,067,778	6,667,495
5 Other costs	018	7,890,440	4,367,031	8,697,930	5,392,568
6 Value adjustments (ADP 144+145)	019	250,062	(3,046)	4,498,263	4,498,263
b) current assets other than financial assets	021	250,062	(3,046)	4,498,263	4,498,263
8 Other operating expenses	029	42,365,117	22,705,680	48,324,820	26,791,518
III FINANCIAL INCOME (ADP 155 to 164)	030	7,965,125	(1,014,757)	7,148,090	5,268,445
1 Income from investments in holdings (shares) of undertakings within the group	031	4,434,730	1,941,004	2,917,890	2,917,890
4 Other interest income from operations with undertakings within the group	034	208,564	98,836	86,348	38,395
7 Other interest income	037	460,570	204,075	151,981	74,080
8 Exchange rate differences and other financial income	038	2,861,261	(3,258,672)	3,991,871	2,238,080
IV FINANCIAL EXPENSES (ADP 166 to 172)	041	12,726,613	(4,772,028)	14,339,606	5,512,968
1 Interest expenses and similar expenses with undertakings within the group	042	102,121	50,115	93,277	45,532
2 Exchange rate differences and other expenses from operations with undertakings within the group	043	93,302	46,906
3 Interest expenses and similar expenses	044	3,579,935	3,093,486	7,753,673	4,881,142
4 Exchange rate differences and other expenses	045	8,951,256	(7, 962, 534)	6,492,656	586,294
IX TOTAL INCOME (ADP 125+154+173+174)	053	493,510,322	261,461,586	567,686,046	362,442,185
X TOTAL EXPENDITURE (ADP $131+165+175+176$ )	054	472,910,646	251,527,506	561,405,668	354,791,231
XI PRE-TAX PROFIT OR LOSS (ADP 177-178)	055	20,599,676	9,934,080	6,280,379	7,650,955
1 Pre-tax profit (ADP 177-178)	056	20,599,676	9,934,080	6,280,379	7,650,955
XII INCOME TAX	058		u
XIII PROFIT OR LOSS FOR THE PERIOD (ADP 179-182)	059	20,599,676	9,934,080	6,280,379	7,650,955
1 Profit for the period (ADP 179-182)	060	20,599,676	9,934,080	6,280,379	7,650,955
XIV PRE-TAX PROFIT OR LOSS OF DISCONTINUED OPERATIONS (ADP 187-188)	062	(184, 062)	1,607,847		٠
1 Pre-tax profit from discontinued operations	063		1,607,847
2 Pre-tax loss on discontinued operations	064	184,062	$\overline{\phantom{a}}$
1 Discontinued operations profit for the period (ADP 186-189)	066	÷,	1,607,847	i,	l,
2 Discontinued operations loss for the period (ADP 189-186)	067	(184, 062)	÷		×,
XVI PRE-TAX PROFIT OR LOSS (ADP 179+186)	068	20,415,614	11,541,927	6,280,379	7,650,955
1 Pre-tax profit (ADP 192)	069	20,415,614	11,541,927	6,280,379	7,650,955
XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 192-195)	072	20,415,614	11,541,927	6,280,379	7,650,955
1 Profit for the period (ADP 192-195)	073	20,415,614	11,541,927	6,280,379	7,650,955
STATEMENT OF OTHER COMPRHENSIVE INCOME (to be filled in by undertakings subject to IFRS)
I PROFIT OR LOSS FOR THE PERIOD	078	20,415,614	11,541,927	6,280,379	7,650,955
II OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX (ADP 204 to 211)	079		×		×,
9 Income tax relating to items that can be reclassified to profit or loss	096	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$		$\overline{\phantom{a}}$
V NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 203-212)	097	۸	×	$\overline{\phantom{a}}$	×
VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 202+213)	098	20,415,614	11,541,927	6,280,379	7,650,955
APPENDIX to the Statement on comprehensive income (to be filled in by undertakings that draw up consolidated statements)
VI COMBREHENSIVE INCOME OR LOSS EOR THE REDIOD (ADR 914+917)

Cash flow report

Item	AOP code	Same period of the previous year	Current period
	$\overline{2}$	$\bf{3}$	4
Cash flow from operating activities
1 Pre-tax profit	ı	20,415,614	6,280,378
2 Adjustments (ADP 003 to 010):	$\mathbf{2}$	20,902,517	24,694,574
a) Depreciation	3	13,768,693	13,067,778
c) Gains and losses from sale and unrealised gains and losses and value		1,590,693	4,498,263
adjustment of financial assets	5
d) Interest and dividend income	6	(5, 103, 864)	(3, 230, 657)
e) Interest expenses	7	5,317,898	8,109,371
f) Provisions	8		(1,962,589)
g) Exchange rate differences (unrealised)	9	5,329,097	2,500,785
h) Other adjustments for non-cash transactions and unrealised gains and losses	10		1,711,622
I Cash flow increase or decrease before changes in working capita	п	41,318,131	30,974,952
3 Changes in the working capital (ADP 013 to 016)	12		$(32,728,089)$ $(54,191,504)$
a) Increase or decrease in short-term liabilities	13	6,581,815	10,867,743
b) Increase or decrease in short-term receivables	14	(16, 235, 054)	(59, 263, 658)
c) Increase or decrease in inventories	15	(3,753,009)	(3, 441, 440)
d) Other increase or decrease in working capital	16	(19, 321, 841)	(2, 354, 149)
II Cash from operations (ADP 011+012)	17		8,590,042 (23,216,553)
4 Interest paid	18	(3,100,346)	(1,020,700)
5 Income tax paid	19		$(5,337,050)$ $(1,905,974)$
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 01	20		152,646 (26,143,227)
Cash flow from investment activities
1 Cash receipts from sales of fixed tangible and intangible assets	21	500
2 Cash receipts from sales of financial instruments	22	20,000
3 Interest received	23	37,431	231,941
4 Dividends received	24	4,434,730	2,917,800
5 Cash receipts from repayment of loans and deposits	25	2,900,020	6,834,415
6 Other cash receipts from investment activities	26	3,600,046
III Total cash receipts from investment activities (ADP 021 to 026	27	10,992,727	9,984,156
1 Cash payments for the purchase of fixed tangible and intangible assets	28	(8, 847, 663)	(2, 557, 960)
3 Cash payments for loans and deposits for the period	30	(5,000)	(6, 525, 342)
4 Acquisition of a subsidiary, net of cash acquired	31	(20,000)
IV Total cash payments from investment activities (ADP 028 to 0:	33	(8,872,663)	(9,083,302)
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +03	34	2,120,064	900,854
Cash flow from financing activities
3 Cash receipts from credit principals, loans and other borrowings	37	10,601,787
V Total cash receipts from financing activities (ADP 035 to 038)	39	10,601,787
1 Cash payments for the repayment of credit principals, loans and other borrowii	40	(4,980,541)	(5,350,363)
3 Cash payments for finance lease	42	(3,072,274)	(1,624,323)
VI Total cash payments from financing activities (ADP 040 to 044	45	(8,052,815)	(6,974,686)
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045	46	2,548,972	(6,974,686)
D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP 020+034+	48		4,821,682 (32,217,059)
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PER	49	49,553,142	50,805,070
F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD(AD	50	54,374,824	18,588,011

Report on changes in capital for the current period

Item	AOP code	Initial subscribed) capital	Capital reserves	Legal reserves	Reserves for treasury shares	shares and holdings (deductible item)	Statutory reserves	Other reserves	Revaluation reserves	Retained profit / loss brought forward	Profit/loss for the business year	Total attributable to owners of the parent	Minority (non- controlling interest	Total capital and reserves
											17 2	$+ 8$ do 17)	17	$18(16+17)$
Current period
I Balance on the first day of the current business year	28	247,193,050 86,141,670 11,486,600 8,465,950 8,465,950 32,188,407						an Alb		40,706,979 (388,097,152) (10,011,722)		19,607,832		19,607,832
2 Changes in accounting policies	29													$\sim$
3 Correction of errors	30
4 Balance on the first day of the current business year (restated) (ADP 2)	31	247,193,050 86,141,670 11,486,600 8,465,950 8,465,950 32,188,407								40,706,979 (388,097,152)	(10.011.722)	19,607,832		19,607,832
5 Profit/loss of the period	32										6,280,378	6,280,378		6,280,378
22 Transfer to reserves according to the annual schedule	49									(10, 011, 722)	10,011,722
23 Balance on the last day of the current business year reporting period (	51	247,193,050 86,141,670 11,486,600 8,465,950 8,465,950 32,188,407								40,706,979 (398,108,874)	6,280,378	25,888,210		25,888,210
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	52
II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP 3)	53										6,280,378	6,280,378		6,280,378
III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED	54									(10, 011, 722)	10,011,722

Report on changes in capital for the previous period

							Attributable to owners of the parent
Item	AOP code	Initial subscribed capital	Capital reserves	Legal reserves	Reserves for treasury shares	Treasury shares and holdings (deductible item)	Statutory reserves	Other reserves	Revaluation reserves	Retained profit / loss brought forward	Profit/loss for the business year	Total attributable to owners of the parent	Minority (non- controlling interest	Total capital and reserves
										16	17 2	18 (3 do 6 - 7 $+8$ do 17)	17.	$18(16+17)$
Previous period
I Balance on the first day of the previous business year		247, 193, 050 86, 141, 670 11, 486, 600 8, 465, 950 8, 465, 950 32, 188, 407						CONTRACTOR		40,706,979 (393,897,901)	5.800.749	29.619.554		29,619,554
2 Changes in accounting policies
3 Correction of errors
4 Balance on the first day of the previous business year (restated) (ADP (		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											(10, 011, 722)	(10, 011, 722)		(10, 011, 722)
22 Transfer to reserves according to the annual schedule	22									5,800,749	(5,800,749)			$\sim$
24 Balance on the last day of the previous business year reporting period	24	247,193,050 86,141,670 11,486,600 8,465,950 8,465,950 32,188,407 -								40,706,979 (388,097,152)	(10, 011, 722)	19,607,832		19,607,832
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	25
II COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD (ADP	26										$(10,011,722)$ $(10,011,722)$			(10, 011, 722)
III TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD	27									5,800,749	(5,800,749)

1. Statement of the debtor that he did not take any action that would result in putting creditors in an unequal position

S T A T E M E N T

by which we confirm that we have not taken any action that would result in bringing creditors into an unequal position.

Đuro Tatalović, Management Board member