Dalekovod d.d.

Quarterly Report • Oct 26, 2022

NON-REVISED CONSOLIDATED AND NON-CONSOLIDATED FINANCIAL REPORTS January - September 2022 DALEKOVOD GROUP

Dalekovod d.d.

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

CONTENTS

BOARD REPORT _____________ 4
Key messages______________	4
The Group's and Company's financial result for period from January to September 2022	__ 6
An overview of the business activities of the Group's key segments _______	7
Financial results of Group Companies in the period from January to September 2022_____	9
Financial position of the Group and the Company ________	10
Financial debt of the Group and the Company ___________	11
statement___________ 13
COMPANY'S FINANCIAL STATEMENT FOR THE PERIOD FROM JANUARY TO september 2022	14
Financial position report __________	14
Profit and loss account ___________	15
Cash flow statement _____________	16
Report on the changes in the capital for the current period ______	17
Report on the changes in the capital for the previous period _____	18
COMPANY'S FINANCIAL STATEMENT FOR THE PERIOD FROM JANUARY TO september 2022	19
Financial position report __________	19
Profit and loss account ___________	20
Cash flow statement _____________	21
Report on the changes in the capital for the current period ______	22
Report on the changes in the capital for the previous period _____	23
NOTES TO FINANCIAL STATEMENTS_________ 24
Basic information__________	24
Basic information (continued) ____________	25

2

Redovna dionica DLKV-R-A uvrštena na Službeno tržište Zagrebačke burze Obavijest sukladno Zakonu o tržištu kapitala

OPERATING INCOME, EBITDA AND NET PROFIT OF THE GROUP

(January - September 2022)

OPERATING INCOME, EBITDA AND NET PROFIT OF DALEKOVOD jsc

(January - September 2022)

BOARD REPORT

Key messages

New circumstances and challenges related to the Russia-Ukraine crisis and the ongoing negative effects of the COVID-19 pandemic, that is, reduced tender activity in 2020 and 2021 had a negative impact on the activities of Dalekovod Group (hereinafter: the Group) in the first nine months of 2022. Challenges related to the Russia-Ukraine crisis have additionally accelerated the existing increase of prices of material and raw material, and thus aggravated the inflation pressure, all of which had a negative effect on the Group's profitability. Therefore, the existing gross, EBITDA, and net margins do not reflect the normalized profitability of the projects but rather reflect the recorded costs of increased prices of energy sources, materials, and services for which initially, conservatively, no revenue was recorded from settling the difference based on the increased costs. However, the Group has initiated intensive negotiations on key markets, i.e., with key customers, in the context of regulating existing activities and settling the difference based on increased costs. From this basis, we expect significant positive effects on business by the end of the year.

Therefore, at Group level, in the first nine months of 2022, there was a 36-percent decrease in operating income compared to the same period last year, amounting to HRK 705.7 million. The major culprit for the decrease in the Group's income was its parent company, Dalekovod d.d. (hereinafter: the Company) because of the discontinuation of works on two projects in Ukraine and reduced activity in Scandinavian countries.

A company of the Dalekovod Ljubljana d.o.o. group was also a factor contributing to decreased income in the observed period because the most significant project, Cirkovce-Pince 2x400 kV is in its final stages. The Ukrainian projects are not expected to yield losses or negatively affect the Company's profitability because of the structure of the contract with the investors with minimized risks.

The production segment achieved 13 percent higher income (HRK 123.2 million) compared to the same period last year.

Due to a high level of contracted works during 2022, the company Dalekovod Mostar recorded a growth in income of 50 percent compared to the same period last year.

Dalekovod Projekt d.o.o. achieved a 12-percent growth in income compared to same period last year. Due to a decrease in the activities of the clients on the domestic market, the company Dalekovod EMU d.o.o. recorded a decrease of 23 percent in their income in relation to the same period last year.

Group's EBITDA in the reporting period is 5.1 million, and this was mostly a result of the abovementioned circumstances related to decreased tender activity of key customers due to the COVID-19 pandemic and the challenges related to the Russia-Ukraine crisis in the context of strong growth in the prices of material and raw material and, consequently, of all the other costs.

A recovery of business activities was visible in the Q3 2022 when HRK 264 million were achieved with a positive net profit in the amount of HRK 3.6 million. In the next period, we expect to continue the positive trend, primarily through collecting increased business costs in agreement with domestic and foreign investors based on defined methodologies. We expect strong, tender activity in the energy and transport infrastructure in the coming period, both through the implementation of NPOO projects and through solid investment activity in the form of performance of green and digital transition activities in markets where Dalekovod Group traditionally operates and has a strong presence, which implies significant investments in energy infrastructure and renewable energy sources.

After the capital increase was conducted and the total subscribed capital of HRK 410 million in cash was paid in January 2022, on 11 February 2022, the Company used the funds collected by issuing new shares to settle its debt toward the creditors whose claims were established in a pre-bankruptcy settlement. The total amount of settled claims at the Company level was HRK 357 million. The debt indicators consequently improved, as did the Company's and Group's overall financial position as on 30 June 2022 compared to the same period last year. Taking into consideration all of the above, i.e. the elimination of capital inadequacy and limited financial possibilities, the capital increase will allow for Company's and Group's continued development and their greater resistance to external risk factors.

During the third quarter, a final decision was made on the award of the Company's real estate in Dugo Selo, and with the final decision and court decision on settlement, the obligation to the creditor PODRAVSKA BANKA d.d. will be settled by offsetting. The total financial debt and indebtedness of the Group related to the claims of various creditors who did not participate in the pre-bankruptcy settlement will be reduced by the same amount.

On the Dugo Selo-Križevci project, based on the decision of the consortium members and by the provisions of the inter-consortium agreement, the Company plans to take over the remaining

unfinished works on the Dugo Selo-Križevci project from the domain of DIV Group, to which the investor HŽ Infrastruktura has given its consent.

Indicators	Dalekovod Grupa			Dalekovod d.d.
(in 000 HRK)	I-IX 2021	I-IX 2022	Index	I-IX 2021	I-IX 2022	Index
Operating income	1,110,827	705,656	64	826,212	495,767	60
Sales revenue	1,102,807	698,393	63	803,400	460,358	57
Operating expenses	1,064,440	723,107	68	791,877	509,761	64
EBITDA	70,096	5,057	-65,039kn	54,256	6,530	-47,726kn
EBIT	46,387	(17,451)	-63,838kn	34,335	(13,994)	-48,329kn
Net profit	32,445	(21,271)	-53,716	23,345	(15,292)	-38,637
DISCONTINUED OPERATIONS	(74)	(550)	-476kn	-	-	-
Net profit after discontinued operations	32,370	(21,821)	-54,191kn	23,345	(15,292)	-38,637kn
EBITDA margin	6.3%	0.7%		6.6%	1.3%

The Group's and Company's financial result for period from January to September 2022

*In accordance with the international financial standards, the items in the profit and loss account and in the reports on the Group's and the Company's financial position in the previous period, i.e., in 2021 and in 2022, have been harmonised for financial impact of the mentioned transaction, i.e., the termination of business activity.

The Group's operating income amounted to HRK 705.7 million in 2022, which is a 36 % decrease compared to the same period last year, while the Company's operating income amounted to HRK 495.8 million, which is 40 % decrease compared to the same period last year. EBITDA (income - operating expenses + depreciation) at the Group level amounts to HRK 5.1 million, which is a HRK 65 million decrease compared to the same period last year, whereas EBITDA fell from 6.3 percent in 2021 to 0.7 percent in 2022. An even more significant change was recorded with the Company in terms of decrease in profitability. EBITDA at the Company level amounts to HRK 6.5 million, which is a 47.7 million HRK decrease compared to the same period in the previous year, i.e. a decrease of the EBITDA margin from 6.6 percent to 1.3 percent. The Group's net loss in the first nine months of 2022 was HRK 21.8 million, consisting of loss from regular operations in the amount of HRK 21.3 million and loss from discontinued operations (related to the sale of the zinc coating segment) in the amount of HRK 550 thousand. The Company's net loss was HRK 15.3 million, which is a 39 million decrease compared to the same period last year.

This was a result of the above-mentioned key events that marked the first nine months of 2022, that is, the impact of the COVID-19 crisis on the investor's activities, and the challenges related to the Russia-Ukraine crisis.

An overview of the business activities of the Group's key segments

The Department for implementation of energy projects (construction of transmission lines and substations) recorded a drop in income of 43.41 % in the third quarter of 2022 compared to the same period last year, and the total income amounted to HRK 432 million. The profitability of both sectors was significantly decreased due to the lower level of contracting and the negative effect of the increase of the prices of material and raw material and other related costs. Reduced activity on the Scandinavian market and the discontinuation of works on two projects in Ukraine had a negative effect on the income in the Energy Sector. The transmission lines segment is currently working on 23 large projects (2 in Norway, 10 in Sweden, 4 in the region, 2 in Germany and 5 in Croatia) as well as 6 smaller projects, and the substation segment is working on 11 large projects (5 in Croatia, 2 in Norway and 3 in Macedonia).

In the first nine months of 2022, in the Sales Sector (transmission lines and substations segment), works have been contracted in the total value of HRK 488 million.

The Infrastructure Sector recorded a -1.33% decrease in income compared to the same period of the previous year, and total income this year amounts to HRK 51.43 million. The largest part of the income resulted from the railway construction projects of Dugo Selo-Križevci, Zaprešić-Savski Marof and Vinkovci-Vukovar. The sector's profitability is at the planned level. The most significant investors of the concerned sector are HŽ Infrastruktura and Hrvatske ceste. There are 10 ongoing projects, and works are taking place on 9 sites.

In the first nine months of 2022, due to long-lasting appeal procedures, no new contracts have been concluded, but in Q4, the finalization of a contract is expected in the value of HRK 155 million for the project of constructing the railway track on the Karlovac-Leskovac section.

The Production Segment (Proizvodnja MK d.o.o. and Proizvodnja OSO d.o.o.) - the splitting up of the Proizvodnja MK and OSO d.o.o. companies into two companies, Proizvodnja MK d.o.o. and Proizvodnja OSO d.o.o. enabled a more efficient implementation of separate development strategies for the particular segment for the purpose of increasing the efficiency of both companies' operations.

Redovna dionica DLKV-R-A uvrštena na Službeno tržište Zagrebačke burze Obavijest sukladno Zakonu o tržištu kapitala During the third quarter of 2022, the company Proizvodnja MK d.o.o. produced/processed 2,610 tonnes, which is a decrease of app. 4 % compared to the same period last year. This decrease in terms of quantity is a result of intense activity in the same period of the previous year owing to the Cirkovce-

Pince 2x400kV project. Regardless of the recorded decrease in terms of quantities of material produced/processed, the operating income of the company Proizvodnja MK d.o.o. increased by 30 percent in the first nine months compared to the same period last year and amounts to HRK 64.8 million, which is a result of higher exit prices.

During the third quarter of 2022, the company Proizvodnja OSO d.o.o. produced/processed 784.3 tonnes, which is a 33 % decrease compared to the same period last year. This decrease in terms of quantity is a consequence of reduced activity of key customers, including the parent company due to the above-mentioned circumstances. Regardless of the recorded decrease in terms of quantities of material produced/processed, the operating income of the company Proizvodnja OSO d.o.o. was only 1.3 percent lower in the first nine months compared to the same period last year and amounts to HRK 58.4 million, which is a result of higher exit prices.

The achieved EBITDA of the production segment, that is, of both companies, is HRK -4 million, i.e. it is HRK 11.2 million lower than in the same period last year.

The operating income of the Design Segment, which is linked to the activities of Dalekovod Projekt d.o.o., was HRK 28 million, which is 12 percent more than in the same period last year (2021 – HRK 24,8 million). The growth in income is a result of the strong breakthrough into the foreign market, especially the Swedish one. This indicates an increase in income on the foreign market which doubled in relation to the same period last year (HRK 4 million). Considering the cyclic nature of designing activities, a satisfactory level of profitability was preserved. The steady level of contracted works ensures their execution in the upcoming period.

In the first nine months of 2022, Dalekovod Ljubljana d.o.o. achieved an income of HRK 90.7 million, 77.4 million of which is related to the Cirkovce-Pince 2x400 kV project. The decreased level of operating income is related to the decreased extent of works on the concerned project, that is, the fact that it it in its final stages. The company's EBITDA achieved in the first nine mnths of 2022 was HRK 4.4 million.

Dalekovod Emu d.o.o., operating on locations in Zagreb and Vela Luka, achieved operating income in the first nine months of 2022 in the amount of HRK 1.9 million, which is a 22.9 percent drop compared to the same period of the previous year. In its business operations, it performs works from the segment of measuring and testing electromagnetic fields of high and low frequencies and the works of electricity

meter calibration in its own calibration station in Vela Luka. The reason for the decrease in income in the third quarter of 2022 below the planned level is the decrease in the planned scope of calibration of electricity meters as a consequence of difficulties in the production, supply and delivery of electricity meters. This income decrease will be compensated for in the fourth quarter, based on the deliveries and calibrations of electricity meters which have already started in October 2022, and the income will be at the planned and last year's level. The works in the segment of measuring and testing electromagnetic fields of high and low frequencies for the third quarter of 2022 are in accordance with the quantities planned, and it is expected that this dynamic will continue until the end of the year.

Dalekovod Mostar d.o.o. recorded HRK 54 million income in the first nine months of 2022, which is an increase of app. 50 percent compared to the same period of the previous year. The company's EBITDA for the first nine months is HRK 1.9 million. Increased income is a result of a slightly accelerated rate of project execution in the first three quarters of 2022 and a high level of works contracted during 2021. The contracting and execution of these projects slowed down during the last two years as a consequence of the COVID-19 pandemic.

Company name	Operating income			EBITDA
(in 000 HRK)	I-IX 2021	I-IX 2022	Index	I-IX 2021	I-IX 2022	Index
Dalekovod d.d.	826,212	495,767	60	54,256	6,530	12
Proizvodnja MK d.o.o.*	49,851	64,829	130	769	(4,336)	-564
Proizvodnja OSO d.o.o. *	59,153	58,409	99	6,439	373	6
Dalekovod Ljubljana d.o.o.	304,976	90,692	30	7,670	4,384	57
Dalekovod Projekt d.o.o.	24,788	27,856	112	472	1,041	221
Dalekovod Mostar d.o.o.	35,771	53,659	150	1,715	1,939	113
Cinčaonica Usluge d.o.o.	20	190	943	(64)	(552)	-488kn
Dalekovod EMU d.o.o.	2,446	1,887	77	434	(293)	-67
Other affiliates	115	136	118	(30)	(20)	67
Elimination	(192,504)	(87,770)	46	(1,564)	(4,008)	-2,444kn
Total Group	1,110,827	705,656	64	70,096	5,057	7
Discontinued operations	20	190	-	(64)	(552)	-488kn

Financial results of Group Companies in the period from January to September 2022

*On 1 March 2020, an economic unit engaged in the production of suspension and coupling equipment was separated from the company Proizvodnja MK i OSO d.o.o. That economic unit continues to operate as a separate business entity, Proizvodnja OSO d.o.o. (Personal Id. No. (OIB): 55411035652), and the company Proizvodnja MK i OSO d.o.o. changed its name to Proizvodnja MK d.o.o.

** in liquidation

Dalekovod Group	Dalekovod Group			Dalekovod d.d.
(in 000 HRK)	31.12.2021	30.09.2022	Index	31.12.2021	30.09.2022	Index
RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID	-	-	-	-	-	-
ASSETS	1,319,214	925,244	70	1,230,607	862,991	70
Fixed assets	328,690	321,992	98	354,676	349,442	99
Current assets	990,524	603,252	61	875,931	513,549	59
LIABILITIES	836,207	465,186	56	787,065	434,740	55
Provisions	29,636	27,800	94	26,085	24,249	93
Long-term liabilities	70,007	71,061	102	73,151	73,612	101
Short-term liabilities	736,564	366,324	50	687,829	336,879	49
CAPITAL AND RESERVES	483,007	460,058	95	443,543	428,251	97

Financial position of the Group and the Company

The Group's and the Company's financial position was significantly improved largely owing to the performance of the capital increase process. As already mentioned, based on the shareholders' Decision to increase the share capital of the Company, HRK 410 million were paid in, that is, 41,000,000 new ordinary shares were subscribed, each in the nominal amount of HRK 10.00, increasing the Company's share capital to the amount of HRK 412,471,930.00. On 11 February 2022, the Company used the funds collected by issuing new shares to settle its debt toward the creditors whose claims were established by a pre-bankruptcy settlement. The total amount of claims settled on account of the principal and interest at the Company level was HRK 357 million which significantly improved the debt indicators and the Company's and Group's overall financial position.

In addition to the above, the most significant changes in the financial position concern the changes in working capital. The Group's current assets decreased by 39 percent, and current liabilities by 50 percent. The major factor contributing to the decrease in current assets was the above mentioned use of funds from the capital increase process and payment of the claims established in the pre-bankruptcy settlement, pursuant to the decisions of the General Assembly held on 30 June 2021. This transaction also had an impact on a significant reduction of current liabilities.

Financial debt of the Group and the Company

Type of financial debt		Dalekovod Grupa		Dalekovod d.d.
(in 000 HRK)	31.12.2021	30.09.2022	Indeks	31.12.2021	30.09.2022	Indeks
Senior debt	213,434	-	-	213,434	-	-
Lease liabilities	69,152	34,572	50	67,727	33,458	49
Bonds	14,367	13,015	91	18,962	17,179	91
Mezzanine	31,710	-	-	36,342	-	-
SSR debt	67,492	25,279	37	67,492	25,279	37
Other	11,366	10,865	96	18,807	18,245	97
Total financial debt	407,521	83,731	21	422,764	94,161	22
Cash	57,842	39,892	69	50,727	29,527	58
Net financial debt	349,679	43,839	13	372,037	64,634	17
Financial debt*	308,319	58,452	19	318,930	68,882	22

*Financial debt adjusted for the debt which has no effect on the Company's operative cash flows: (i) Mezzanine dug (ii) Razlučni dug.

Uprava Dalekovod d.d.

In the reporting period I-IX 2021, the consolidated reports of the Dalekovod Group include:

• Cinčaonica usluge u likvidaciji d.o.o., Croatia (discontinued operation)

Tomislav Rosandić Tvrtko Zlopaša

predsjednik Uprave član Uprave

__________________________ __________________________

__________________________ __________________________

• Dalekovod Adria d.o.o., Croatia • EL-RA d.o.o., Croatia

• Dalekovod d.d., Croatia

• Proizvodnja MK d.o.o., Croatia

• Proizvodnja OSO d.o.o., Croatia

• Dalekovod Projekt d.o.o., Croatia

• Dalekovod EMU d.o.o., Croatia

• Dalekovod Mostar d.o.o., Bosnia and Herzegovina
• Dalekovod Ljubljana d.o.o., Slovenia
• Dalekovod Norge AS, Norway
• Dalekovod Ukrajina d.o.o., Ukraine

Ivan Kurobasa Eugen Paić-Karega član Uprave član Uprave

STATEMENT

Pursuant to Article 410(1) and Article 407(2)(3) and Article 407(3) of the Capital Market Act, the people responsible for making reports: Tomislav Rosandić – Chairman of the Management Board, Tvrtko Zlopaša – member of the Management Board, Ivan Kurobasa – member of the Management Board, Eugen Paić-Karega – member of the Management Board, issue the following

S T A T E M E N T

To the best of our knowledge, the financial statements for the reporting period have been prepared on the basis of relevant financial reporting standards, they provide a complete and true overview of the assets and liabilities as well as the operating results of DALEKOVOD and the companies involved in consolidation, with a brief overview of the causes of the stated data. The financial reports have not been revised.

Uprava Dalekovod d.d.

Tomislav Rosandić Tvrtko Zlopaša predsjednik Uprave član Uprave

Ivan Kurobasa Eugen Paić-Karega član Uprave član Uprave

__________________________ __________________________

__________________________ __________________________

COMPANY'S FINANCIAL STATEMENT FOR THE PERIOD FROM JANUARY TO SEPTEMBER 2022

Financial position report

Item	AOP code	Last day of the precending business year	At th reporting date of the current period
1	2	3	4
ASSETS
A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID	001	-	-
B) FIXED ASSETS (ADP 003+010+020+031+036)	002	328,689,985	321,992,266
I INTANGIBLE ASSETS (ADP 004 to 009)	003	3,525,549	5,998,183
II TANGIBLE ASSETS (ADP 011 to 019)	010	272,317,124	262,347,846
III FIXED FINANCIAL ASSETS (ADP 021 to 030)	020	7,686,691	7,231,310
IV RECEIVABLES (ADP 032 to 035)	031	45,160,621	46,414,927
V DEFERRED TAX ASSETS	036	-	-
C) CURRENT ASSETS (ADP 038+046+053+063)	037	984,250,529	597,955,998
I INVENTORIES (ADP 039 to 045)	038	73,459,725	74,093,657
II RECEIVABLES (ADP 047 to 052)	046	851,113,304	481,740,709
III CURRENT FINANCIAL ASSETS (ADP 054 to 062)	053	1,835,865	2,229,843
IV CASH AT BANK AND IN HAND	063	57,841,635	39,891,789
D ) PREPAID EXPENSES AND ACCRUED INCOME	064	6,273,835	5,295,865
E) TOTAL ASSETS (ADP 001+002+037+064)	065	1,319,214,349	925,244,129
OFF-BALANCE SHEET ITEMS	066	436,113,026	436,034,375
LIABILITIES			-
A) CAPITAL AND RESERVES (ADP 068 to 070+076+077+081+084+087)	067	483,006,919	460,058,222
I INITIAL (SUBSCRIBED) CAPITAL	068	412,471,930	412,471,930
II CAPITAL RESERVES	069	-	-
III RESERVES FROM PROFIT (ADP 071+072-073+074+075)	070	30,213,160	29,085,819
IV REVALUATION RESERVES	076	43,208,115	43,208,115
V FAIR VALUE RESERVES (ADP 078 to 080)	077	-	-
VI RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 082-083)	083	(18,936,581)	(2,886,286)
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 085-086)	086	16,050,295	(21,821,356)
VIII MINORITY (NON-CONTROLLING) INTEREST	089	-	-
B) PROVISIONS (ADP 089 to 094)	090	29,636,360	27,800,346
C) LONG-TERM LIABILITIES (ADP 096 to 106)	097	70,006,616	71,061,229
D) SHORT-TERM LIABILITIES (ADP 108 to 121)	109	692,998,187	331,971,602
E) ACCRUALS AND DEFERRED INCOME	124	43,566,267	34,352,730
F) TOTAL – LIABILITIES (ADP 067+088+095+107+122)	125	1,319,214,349	925,244,129
G) OFF-BALANCE SHEET ITEMS	126	436,113,026	436,034,375

Cumulative Quarter Cumulative Quarter 2 3 4 5 6 I OPERATING INCOME (ADP 126 to 130) 001 1,110,826,821 362,170,100 705,656,012 264,495,473 1 Income from sales with undertakings within the group 002 - - 6,932,427 1,525,222 2 Income from sales (outside group) 003 1,102,806,926 359,252,999 691,460,827 260,233,913 5 Other operating income (outside the group) 006 8,019,895 2,917,101 7,262,758 2,736,338 II OPERATING EXPENSES (ADP 132+133+137+141+142+143+146+153) 007 1,064,439,502 340,143,713 723,106,942 261,346,933 1 Changes in inventories of work in progress and finished goods 008 5,590,345 6,232,212 2,358,656 (2,121,034) 2 Material costs (ADP 134 to 136) 009 696,935,127 202,469,631 403,298,280 157,839,460 a) Costs of raw materials and consumables 010 125,180,577 38,456,545 152,625,943 60,491,030 b) Costs of goods sold 011 220,063,675 41,168,841 59,466,949 19,089,454 c) Other external costs 012 351,690,875 122,844,245 191,205,388 78,258,976 3 Staff costs (ADP 138 to 140) 013 224,308,353 83,717,720 194,189,479 68,786,655 a) Net salaries and wages 014 172,990,195 65,457,128 144,403,145 51,456,915 b) Tax and contributions from salary costs 015 29,584,535 10,140,203 33,616,364 11,787,606 c) Contributions on salaries 016 21,733,623 8,120,389 16,169,970 5,542,134 4 Depreciation 017 23,708,903 8,059,588 22,507,837 7,417,001 5 Other costs 018 22,466,505 9,391,202 29,619,059 8,126,907 6 Value adjustments (ADP 144+145) 019 4,409,541 (88,228) - b) current assets other than financial assets 021 4,409,541 (88,228) - - 8 Other operating expenses 029 87,020,728 30,361,588 71,133,631 21,297,944 III FINANCIAL INCOME (ADP 155 to 164) 030 5,046,536 538,255 5,597,481 4,022,811 7 Other interest income 037 293,973 69,211 172,172 37,684 8 Exchange rate differences and other financial income 038 4,752,563 469,044 5,335,296 3,985,128 10 Other financial income 040 - - 90,013 (1) IV FINANCIAL EXPENSES (ADP 166 to 172) 041 18,822,271 4,291,397 9,245,697 3,362,178 3 Interest expenses and similar expenses 044 11,846,714 4,165,178 3,522,430 894,657 4 Exchange rate differences and other expenses 045 6,975,557 126,219 5,535,030 2,467,758 7 Other financial expenses 048 - - 188,237 (237) IX TOTAL INCOME (ADP 125+154+173 + 174) 053 1,115,873,357 362,708,355 711,253,493 268,518,284 X TOTAL EXPENDITURE (ADP 131+165+175 + 176) 054 1,083,261,773 344,435,110 732,352,639 264,709,111 XI PRE-TAX PROFIT OR LOSS (ADP 177-178) 055 32,611,584 18,273,245 (21,099,146) 3,809,173 1 Pre-tax profit (ADP 177-178) 056 32,611,584 18,273,245 - 3,809,173 2 Pre-tax loss (ADP 178-177) 057 - - (21,099,146) - XII INCOME TAX 058 167,035 81,909 171,919 171,919 XIII PROFIT OR LOSS FOR THE PERIOD (ADP 179-182) 059 32,444,549 18,191,336 (21,271,065) 3,637,254 1 Profit for the period (ADP 179-182) 060 32,444,549 18,191,336 - 3,637,254 2 Loss for the period (ADP 182-179) 061 - - (21,271,065) - XIV PRE-TAX PROFIT OR LOSS OF DISCONTINUED OPERATIONS (ADP 187-188) 062 (74,330) 6,854 (550,291) (75,238) 2 Pre-tax loss on discontinued operations 064 74,330 (6,854) 550,291 75,238 XV INCOME TAX OF DISCONTINUED OPERATIONS 065 - - - - 2 Discontinued operations loss for the period (ADP 189-186) 067 74,330 6,854 550,291 75,238 XVI PRE-TAX PROFIT OR LOSS (ADP 179+186) 068 32,537,254 18,280,096 (21,649,437) 3,733,936 1 Pre-tax profit (ADP 192) 069 32,537,254 18,280,096 - - 2 Pre-tax loss (ADP 192) 070 - - 21,649,437 (3,733,936) XVII INCOME TAX (ADP 182+189) 071 167,035 81,909 171,919 171,919 XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 192-195) 072 32,370,219 18,198,187 (21,821,356) 3,562,017 1 Profit for the period (ADP 192-195) 073 32,370,219 18,198,187 - - 2 Loss for the period (ADP 195-192) 074 - - 21,821,356 (3,562,017) XIX PROFIT OR LOSS FOR THE PERIOD (ADP 200+201) 075 32,370,219 18,198,187 (21,821,356) 3,562,017 1 Attributable to owners of the parent 076 32,370,219 18,198,187 (21,821,356) 3,562,017 I PROFIT OR LOSS FOR THE PERIOD 078 32,370,219 18,198,187 (21,821,356) 3,562,017 II OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX (ADP 204 to 211) 079 2,450,592 (889) (1,127,341) (65,371) 1 Exchange rate differences from translation of foreign operations 088 2,450,592 (889) (1,127,341) (65,371) V NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 203-212) 097 2,450,592 (889) (1,127,341) (65,371) VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 202+213) 098 34,820,811 18,197,298 (22,948,697) 3,496,646 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 34,820,811 18,197,298 (22,948,697) 3,496,646 1 Attributable to owners of the parent 100 34,820,811 18,197,298 (22,948,697) 3,496,646 STATEMENT OF OTHER COMPRHENSIVE INCOME (to be filled in by undertakings subject to IFRS) Same period of the previous year Current period 1 Item AOP code

Profit and loss account

Redovna dionica DLKV-R-A uvrštena na Službeno tržište Zagrebačke burze Obavijest sukladno Zakonu o tržištu kapitala

Item	AOP code	Same period of the previous year	Current period
1	2	3	4
Cash flow from operating activities
1 Pre-tax profit	1	32,537,254	(21,649,437)
2 Adjustments (ADP 003 to 010):	2	44,107,877	20,336,738
a) Depreciation	3	23,708,903	22,507,837
b) Gains and losses from sale and value adjustment of fixed tangible and intangible assets	4	(53,210)	-
c) Gains and losses from sale and unrealised gains and losses and value adjustment of financial assets	5	4,409,541	101,842
d) Interest and dividend income	6	293,973	172,172
e) Interest expenses	7	11,846,714	3,522,430
f) Provisions	8	(1,962,589)	(1,346,714)
g) Exchange rate differences (unrealised)	9	5,990,249	3,614,737
h) Other adjustments for non-cash transactions and unrealised gains and losses	1 0	(125,704)	(8,235,567)
I Cash flow increase or decrease before changes in working capital (ADP 001+002)	1 1	76,645,131	(1,312,699)
3 Changes in the working capital (ADP 013 to 016)	1 2	(51,695,075)	(66,225,333)
a) Increase or decrease in short-term liabilities	1 3	(2,840,922)	(21,678,853)
b) Increase or decrease in short-term receivables	1 4	(56,266,604)	(40,627,405)
c) Increase or decrease in inventories	1 5	843,065	(633,932)
d) Other increase or decrease in working capital	1 6	6,569,386	(3,285,143)
II Cash from operations (ADP 011+012)	1 7	24,950,056	(67,538,032)
4 Interest paid	1 8	(2,041,654)	(32,871,887)
5 Income tax paid	1 9	(2,826,553)	(5,293,898)
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019)	2 0	20,081,849	(105,703,817)
Cash flow from investment activities
1 Cash receipts from sales of fixed tangible and intangible assets	2 1	97,035	376,606
3 Interest received	2 3	46,201	-
5 Cash receipts from repayment of loans and deposits	2 5	7,084,354	-
6 Other cash receipts from investment activities	2 6	-	30,714
III Total cash receipts from investment activities (ADP 021 to 026)	2 7	7,227,590	407,320
1 Cash payments for the purchase of fixed tangible and intangible assets	2 8	(4,252,561)	(6,228,342)
3 Cash payments for loans and deposits for the period	3 0	(236,694)	-
5 Other cash payments from investment activities	3 2	-	(55,842)
IV Total cash payments from investment activities (ADP 028 to 032)	3 3	(4,489,255)	(6,284,184)
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033)	3 4	2,738,335	(5,876,864)
Cash flow from financing activities
1 Cash receipts from the increase in initial (subscribed) capital	3 5	-	410,000,000
3 Cash receipts from credit principals, loans and other borrowings	3 7	-	12,055
4 Other cash receipts from financing activities	3 8	-	71,166
V Total cash receipts from financing activities (ADP 035 to 038)	3 9	-	410,083,221
1 Cash payments for the repayment of credit principals, loans and other borrowings and debt financial instruments	4 0	(6,149,809)	(287,122,612)
3 Cash payments for finance lease	4 2	(3,799,807)	(21,998,233)
5 Other cash payments from financing activities	4 4	-	(6,510,038)
VI Total cash payments from financing activities (ADP 040 to 044)	4 5	(9,949,616)	(315,630,883)
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045)	4 6	(9,949,616)	94,452,338
1 Unrealised exchange rate differences in respect of cash and cash equivalents	4 7	-	(821,503)
D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP 020+034+046+047)	4 8	12,870,568	(17,949,846)
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	4 9	64,100,131	57,841,635
F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD(ADP 048+049)	5 0	76,970,699	39,891,789

Report on the changes in the capital for the current period

Reserves Treasury Initial for shares and Item (subscribed) Legal treasury holdings Other Revaluation AOP capital reserves shares (deductibl reserves reserves code 1 2 3 5 6 7 9 1 0 Current period 1 Balance on the first day of the current business year 2 8 412,471,930 165,810 8,465,522 8,465,522 30,047,350 43,208,115 4 Balance on the first day of the current business year (restated) (ADP 27 to 29) 3 1 412,471,930 165,810 8,465,522 8,465,522 30,047,350 43,208,115 5 Profit/loss of the period 32 - - - - - - 6 Exchange rate differences from translation of foreign operations 33 - - - - (1,127,341) -	Retained profit / loss brought forward 1 6 (18,936,581) (18,936,581)	Profit/loss for the business year 1 7 16,050,295 16,050,295	Total attributable to owners of the parent 18 (3 do 6 - 7 + 8 do 17) 483,006,919 483,006,919	20 (18+19) 483,006,919 483,006,919
				Total capital and reserves
	-	(21,821,356)	(21,821,356)	(21,821,356)
	-	-	(1,127,341)	(1,127,341)
22 Transfer to reserves according to the annual schedule 49 - - - - - -	16,050,295	(16,050,295)	-	-
24 Balance on the last day of the previous business year reporting period (ADP 04 to 23) 5 1 412,471,930 165,810 8,465,522 8,465,522 28,920,009 43,208,115	(2,886,286)	(21,821,356)	460,058,222	460,058,222
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 5 2 - - - - (1,127,341) -	-	-	(1,127,341)	(1,127,341)
II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP 31+50)5 3 - - - - (1,127,341) -	-	(21,821,356)	(22,948,697)	(22,948,697)
III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED DIRECTLY IN EQUITY (ADP 41 to 48) 5 4 - - - - - -	16,050,295	(16,050,295)	-	-

Report on the changes in the capital for the previous period

			Attributable to owners of the parent
Item	AOP	Initial (subscribed)	Capital	Legal	Reserves for treasury	Treasury shares and holdings	Statutory	Other	Revaluation	Retained profit / loss brought	Profit/loss for the business	Total attributable to owners of the
	code	capital	reserves	reserves	shares	(deductibl	reserves	reserves	reserves	forward	year	parent	Total capital and reserves
1	2	3	4	5	6	7	8	9	1 0	1 6	1 7	18 (3 do 6 - 7 + 8 do 17)	20 (18+19)
Previous period
1 Balance on the first day of the previous business year	1		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
4 Balance on the first day of the previous business year (restated) (ADP 01 to 03) 4			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	5	-	-	-	-	-	-	-	-	-	16,050,295	16,050,295	16,050,295
6 Exchange rate differences from translation of foreign operations	6	-	-	-	-	-	-	(294,122)	-	-	-	(294,122)	(294,122)
7 Changes in revaluation reserves of fixed tangible and intangible assets	7	-	-	-	-	-	-	-	2,501,136	-	-	2,501,136	2,501,136
15 Decrease in initial (subscribed) capital (other than arising from the pre-bankruptcy settlement procedure or from the reinvestment of profit)	15	(244,721,120)	(86,141,670)	(11,486,600)	(428)	(428)	(32,188,407)	-	-	374,537,797	-	-	-
19 Payments from members/shareholders	19	410,000,000	-	-	-	-	-	-	-	-	-	410,000,000	410,000,000
22 Transfer to reserves according to the annual schedule	22	-	-	-	-	-	-	-	-	(27,516,390)	27,516,390	-	-
24 Balance on the last day of the previous business year reporting period (ADP 04 to 23) 2	4	412,471,930	-	165,810		8,465,522 8,465,522	-	30,047,350	43,208,115	(18,936,581)	16,050,295	483,006,919	483,006,919
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	2 5	-	-	-	-	-	-	(294,122)	2,501,136	-	-	2,207,014	2,207,014
II COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD (ADP	2 6	-	-	-	-	-	-	(294,122)	2,501,136	-	16,050,295	18,257,309	18,257,309
III TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD	2 7		165,278,880 (86,141,670) (11,486,600)		(428)	(428)	(32,188,407)	-	-	347,021,407	27,516,390	410,000,000	410,000,000

COMPANY'S FINANCIAL STATEMENT FOR THE PERIOD FROM JANUARY TO SEPTEMBER 2022

Financial position report

Item	AOP code	Last day of the precending business year	At th reporting date of the current period
1 ASSETS	2	3	4
A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID	001	-	-
B) FIXED ASSETS (ADP 003+010+020+031+036)	002	354,676,462	349,442,293
I INTANGIBLE ASSETS (ADP 004 to 009)	003	1,769,596	4,347,835
II TANGIBLE ASSETS (ADP 011 to 019)	010	252,162,520	243,566,895
		55,583,726	55,112,636
III FIXED FINANCIAL ASSETS (ADP 021 to 030)	020	45,160,620	46,414,927
IV RECEIVABLES (ADP 032 to 035)	031
V DEFERRED TAX ASSETS	036	-	-
C) CURRENT ASSETS (ADP 038+046+053+063)	037	869,936,101 8,185,456	508,593,938 9,370,757
I INVENTORIES (ADP 039 to 045)	038	795,072,252	448,743,757
II RECEIVABLES (ADP 047 to 052)	046	15,951,837	20,952,855
III CURRENT FINANCIAL ASSETS (ADP 054 to 062)	053
IV CASH AT BANK AND IN HAND	063	50,726,556	29,526,569
D ) PREPAID EXPENSES AND ACCRUED INCOME	064	5,995,305	4,954,980
E) TOTAL ASSETS (ADP 001+002+037+064)	065	1,230,607,868	862,991,211
OFF-BALANCE SHEET ITEMS	066	425,283,286	422,214,502
LIABILITIES
A) CAPITAL AND RESERVES (ADP 068 to 070+076+077+081+084+087)	067	443,543,063	428,251,044
I INITIAL (SUBSCRIBED) CAPITAL	068	412,471,930	412,471,930
II CAPITAL RESERVES	069	-	-
III RESERVES FROM PROFIT (ADP 071+072-073+074+075)	070	-	-
IV REVALUATION RESERVES	076	43,208,115	43,208,115
V FAIR VALUE RESERVES (ADP 078 to 080)	077	-	-
VI RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 082-083)	083	(23,571,078)	(12,136,982)
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 085-086)	086	11,434,096	(15,292,019)
VIII MINORITY (NON-CONTROLLING) INTEREST	089	-	-
B) PROVISIONS (ADP 089 to 094)	090	26,085,020	24,249,006
C) LONG-TERM LIABILITIES (ADP 096 to 106)	097	73,150,865	73,612,208
D) SHORT-TERM LIABILITIES (ADP 108 to 121)	109	644,262,653	302,526,223
E) ACCRUALS AND DEFERRED INCOME	124	43,566,267	34,352,730
F) TOTAL – LIABILITIES (ADP 067+088+095+107+122)	125	1,230,607,868	862,991,211
G) OFF-BALANCE SHEET ITEMS	126	425,283,286	422,214,502

Profit and loss account

	AOP	Same period of the previous year		Current period
Item	code	Cumulative Quarter		Cumulative	Quarter
1	2	3	4	5	6
I OPERATING INCOME (ADP 126 to 130)	001	826,212,056	265,674,100	495,767,429	212,815,835
1 Income from sales with undertakings within the group	002	112,958,674	9,996,482	8,345,556	2,051,693
2 Income from sales (outside group)	003	690,440,995	245,787,316	452,012,030	203,411,059
4 Other operating income with undertakings within the group	005	15,558,149	7,237,687	29,142,376	5,009,736
5 Other operating income (outside the group)	006	7,254,238	2,652,615	6,267,467	2,343,347
II OPERATING EXPENSES (ADP 132+133+137+141+142+143+146+153)	007	791,877,007	244,810,946	509,761,338	206,133,719
2 Material costs (ADP 134 to 136)	009	501,422,097	139,753,736	276,496,537	125,135,610
a) Costs of raw materials and consumables	010	110,604,437	39,810,459	144,830,105	68,226,252
b) Costs of goods sold	011	193,447,893	30,792,597	2,145,893	232,077
c) Other external costs	012	197,369,767	69,150,680	129,520,539	56,677,281
3 Staff costs (ADP 138 to 140)	013	179,630,515	68,821,606	148,227,012	53,251,198
a) Net salaries and wages	014	144,982,686	56,106,731	115,054,325	41,544,459
b) Tax and contributions from salary costs	015	18,794,499	4,700,409	22,751,981	8,099,685
c) Contributions on salaries	016	15,853,330	8,014,466	10,420,706	3,607,054
4 Depreciation	017	19,920,736	6,852,958	20,523,493	6,780,261
5 Other costs	018	13,503,789	4,805,859	14,766,033	4,307,634
6 Value adjustments (ADP 144+145)	019	4,502,141	3,878	-	-
b) current assets other than financial assets	021	4,502,141	3,878	-	-
8 Other operating expenses	029	72,897,729	24,572,909	49,748,263	16,659,016
III FINANCIAL INCOME (ADP 155 to 164)	030	7,556,882	408,792	7,672,387	3,940,848
1 Income from investments in holdings (shares) of undertakings within the group	031	2,850,469	(67,421)	2,113,109	-
4 Other interest income from operations with undertakings within the group	034	147,986	61,638	404,488	302,544
7 Other interest income	037	228,184	76,203	101,948	(156,834)
8 Exchange rate differences and other financial income	038	4,330,243	338,372	4,962,827	3,795,138
10 Other financial income	040	-	-	90,015	-
IV FINANCIAL EXPENSES (ADP 166 to 172)	041	18,546,947	4,207,341	8,970,497	3,196,075
1 Interest expenses and similar expenses with undertakings within the group	042	286,628	193,351	348,709	41,978
3 Interest expenses and similar expenses	044	11,809,532	4,055,859	3,450,298	859,184
4 Exchange rate differences and other expenses	045	6,450,787	(41,869)	5,069,647	2,294,912
7 Other financial expenses	048	-	-	101,843	1
IX TOTAL INCOME (ADP 125+154+173 + 174)	053	833,768,938	266,082,892	503,439,816	216,756,683
X TOTAL EXPENDITURE (ADP 131+165+175 + 176)	054	810,423,954	249,018,287	518,731,835	209,329,794
XI PRE-TAX PROFIT OR LOSS (ADP 177-178)	055	23,344,984	17,064,605	(15,292,019)	7,426,889
1 Pre-tax profit (ADP 177-178)	056	23,344,984	17,064,605	-	7,426,889
2 Pre-tax loss (ADP 178-177)	057	-	-	(15,292,019)	-
XII INCOME TAX	058	-	-	-	-
XIII PROFIT OR LOSS FOR THE PERIOD (ADP 179-182)	059	23,344,984	17,064,605	(15,292,019)	7,426,889
1 Profit for the period (ADP 179-182)	060	23,344,984	17,064,605	-	7,426,889
2 Loss for the period (ADP 182-179)	061	-	-	(15,292,019)	-
XVI PRE-TAX PROFIT OR LOSS (ADP 179+186)	068	23,344,984	17,064,605	(15,292,019)	7,426,889
1 Pre-tax profit (ADP 192)	069	23,344,984	17,064,605	-	-
2 Pre-tax loss (ADP 192)	070	-	-	15,292,019	(7,426,889)
XVII INCOME TAX (ADP 182+189)	071	-	-	-	-
XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 192-195)	072	23,344,984	17,064,605	(15,292,019)	7,426,889
1 Profit for the period (ADP 192-195)	073	23,344,984	17,064,605	-	-
2 Loss for the period (ADP 195-192)	074	-	-	15,292,019	(7,426,889)
STATEMENT OF OTHER COMPRHENSIVE INCOME (to be filled in by undertakings subject to IFRS)
I PROFIT OR LOSS FOR THE PERIOD	078	23,344,984	17,064,605	(15,292,019)	7,426,889
VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 202+213)	098	23,344,984	17,064,605	(15,292,019)	7,426,889
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	23,344,984	17,064,605	(15,292,019)	7,426,889
1 Attributable to owners of the parent	100	23,344,984	17,064,605	(15,292,019)	7,426,889

Cash flow statement

Item	AOP code	Same period of the previous year	Current period
1	2	3	4
Cash flow from operating activities
1 Pre-tax profit	1	23,344,984	(15,292,019)
2 Adjustments (ADP 003 to 010):	2	35,064,879	15,384,296
a) Depreciation	3	19,920,736	20,523,493
c) Gains and losses from sale and unrealised gains and losses and value		4,502,141	-
adjustment of financial assets	5
d) Interest and dividend income	6	(3,226,639)	(2,619,546)
e) Interest expenses	7	9,778,191	3,450,298
f) Provisions	8	(1,962,589)	(1,346,714)
g) Exchange rate differences (unrealised)	9	5,932,578	3,549,977
h) Other adjustments for non-cash transactions and unrealised gains and losses	10	120,461	(8,173,212)
I Cash flow increase or decrease before changes in working capital (ADP 001+002)	1 1	58,409,863	92,277
3 Changes in the working capital (ADP 013 to 016)	1 2	(26,255,787)	(62,397,712)
a) Increase or decrease in short-term liabilities	13	(5,767,988)	4,599,351
b) Increase or decrease in short-term receivables	14	(25,728,859)	(63,671,505)
c) Increase or decrease in inventories	15	(1,185,951)	(1,185,301)
d) Other increase or decrease in working capital	16	6,427,011	(2,140,257)
II Cash from operations (ADP 011+012)	1 7	32,154,076	(62,305,435)
4 Interest paid	1 8	(1,774,154)	(32,868,313)
5 Income tax paid	1 9	(1,897,102)	(4,898,614)
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019)	2 0	28,482,820	(100,072,362)
Cash flow from investment activities		-	-
1 Cash receipts from sales of fixed tangible and intangible assets	21	-	376,606
3 Interest received	23	-	-
4 Dividends received	24	2,850,469	1,432,125
5 Cash receipts from repayment of loans and deposits	25	7,854,978	-
6 Other cash receipts from investment activities	26	-	1,990,475
III Total cash receipts from investment activities (ADP 021 to 026)	2 7	10,705,447	3,799,206
1 Cash payments for the purchase of fixed tangible and intangible assets	28	(3,212,255)	(6,006,405)
3 Cash payments for loans and deposits for the period	30	(6,759,899)	(5,364,650)
IV Total cash payments from investment activities (ADP 028 to 032)	3 3	(9,972,154)	(11,371,055)
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033)	3 4	733,293	(7,571,849)
Cash flow from financing activities		-	-
1 Cash receipts from the increase in initial (subscribed) capital	35	-	410,000,000
3 Cash receipts from credit principals, loans and other borrowings	37	-	12,055
4 Other cash receipts from financing activities	38	-	83,189
V Total cash receipts from financing activities (ADP 035 to 038)	3 9	-	410,095,244
1 Cash payments for the repayment of credit principals, loans and other borrowings and debt financial instruments	40	(6,594,926)	(294,163,289)
3 Cash payments for finance lease	42	(3,719,276)	(21,998,233)
5 Other cash payments from financing activities	44	-	(5,925,267)
VI Total cash payments from financing activities (ADP 040 to 044)	4 5	(10,314,202)	(322,086,789)
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045)	4 6	(10,314,202)	88,008,455
1 Unrealised exchange rate differences in respect of cash and cash equivalents	47	-	(1,564,231)
D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP 020+034+046+047)	4 8	18,901,911	(21,199,987)
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	4 9	50,805,070	50,726,556
F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD(ADP 048+049)	5 0	69,706,981	29,526,569

Report on the changes in the capital for the current period

Item	AOP code	Initial (subscribed) capital	Reserves for treasury shares	Treasury shares and holdings (deductible item)	Revaluation reserves	Retained profit / loss brought forward	Profit/loss for the business year	Total attributable to owners of the parent 18 (3 do 6 - 7	Total capital and reserves
1	2	3	6	7	1 0	1 6	1 7	+ 8 do 17)	20 (18+19)
Current period
1 Balance on the first day of the current business year	2 8	412,471,930	8,465,522	8,465,522	43,208,115	(23,571,078)	11,434,096	443,543,063	443,543,063
4 Balance on the first day of the current business year (restated) (ADP 27 to 29)	3 1	412,471,930	8,465,522	8,465,522	43,208,115	(23,571,078)	11,434,096	443,543,063	443,543,063
5 Profit/loss of the period	32	-	-	-	-	-	(15,292,019)	(15,292,019)	(15,292,019)
22 Transfer to reserves according to the annual schedule	49	-	-	-	-	11,434,096	(11,434,096)	-	-
23 Balance on the last day of the current business year reporting period (ADP 30 to 48)	5 1	412,471,930	8,465,522	8,465,522	43,208,115	(12,136,982)	(15,292,019)	428,251,044	428,251,044
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	5 2	-	-	-	-	-	-	-	-
II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP 31+50)5	3	-	-	-	-	-	(15,292,019)	(15,292,019)	(15,292,019)
III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED DIRECTLY IN EQUITY (ADP 41 to 48)	5 4	-	-	-	-	11,434,096	(11,434,096)	-	-

Report on the changes in the capital for the previous period

			Attributable to owners of the parent Treasury
Item	AOP code	Initial (subscribed) capital	Capital reserves	Legal reserves	Reserves for treasury shares	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 18 (3 do 6 - 7	Total capital and reserves
1	2	3	4	5	6	7	8	1 0	1 6	1 7	+ 8 do 17)	20 (18+19)
Previous period
1 Balance on the first day of the previous business year	1	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
4 Balance on the first day of the previous business year (restated) (ADP 01 to 03)	4	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	5	-	-	-	-	-	-	-	-	11,434,096	11,434,096	11,434,096
7 Changes in revaluation reserves of fixed tangible and intangible assets	7	-	-	-	-	-	-	2,501,136	-	-	2,501,136	2,501,136
15 Decrease in initial (subscribed) capital (other than arising from the pre-bankruptcy settlement procedure or from the reinvestment of profit)	15	(244,721,120)	(86,141,670)	(11,486,600)	(428)	(428)	(32,188,407)	-	374,537,796	-	(1)	(1)
19 Payments from members/shareholders	19	410,000,000	-	-	-	-	-	-	-	-	410,000,000	410,000,000
22 Transfer to reserves according to the annual schedule	22	-	-	-	-	-	-	-	(10,011,722)	10,011,722	-	-
24 Balance on the last day of the previous business year reporting period (ADP 04 to 23)	2 4	412,471,930	-	-	8,465,522	8,465,522	-	43,208,115	(23,571,078)	11,434,096	443,543,063	443,543,063
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	2 5	-	-	-	-	-	-	2,501,136	-	-	2,501,136	2,501,136
II COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD (ADP	2 6	-	-	-	-	-	-	2,501,136	-	11,434,096	13,935,232	13,935,232
III TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD	2 7	165,278,880	(86,141,670)	(11,486,600)	(428)	(428)	(32,188,407)	-	364,526,074	10,011,722	409,999,999	409,999,999

NOTES TO FINANCIAL STATEMENTS

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: HRK 412,471,930.00. Number of shares: 41,247,193 IBAN: HR8323600001101226102 ZABA Zagreb Company registration number (MBS): 080010093, Commercial Court in Zagreb Registration number (MB): 3275531 Personal identification number (OIB): 47911242222 Activity code: 4222 (Construction of electricity and telecommunication lines)

Basic information

MANAGEMENT

Tomislav Rosandić – President of the Board Tvrtko Zlopaša – Member of the Board Ivan Kurobasa – Member of the Board Eugen Paić-Karega – Member of the Board

SUPERVISORY BOARD

Gordan Kolak (President of the Board), Josip Jurčević (Vice President of the Board), Josip Lasić (Member), Božidar Poldrugač (Member), Damir Spudić (Member), Pavao Vujnovac (Member) Dražen Buljić (Member).

Basic information (continued)

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 the Statements of Financial Position and Profit and Loss

The most significant business endeavours related to changes in the Statements of Financial Position and Profit and Loss for the reporting quarterly period of the issuer in relation to the last fiscal year are described in the Management Board's Report published with these financial reports.

Access to financial reports

The revised annual financial reports for the Company and the Group for 2021 have been published on the Company's website (www.dalekovod.hr) and the Zagreb Stock Exchange (eho.zse.hr).

Accounting policies

The accounting policies of the Company and the Group that are applied when preparing the financial reports for 2022 are the same as the accounting policies that were applied in the annual financial report for 2021.

Business result

An interpretation of the business results of the Company and the Group is given in the Management Board's Report which is attached to these financial reports.

As of September 30, 2022, the Group has concluded contracts whose execution has begun, but has not been completed. The assumed obligations that should arise under these contracts are estimated at HRK 1,351,429 thousand.

As on 30 September 2022, the Group and the Company were subject to contingent liabilities on account of issued bank guarantees (as an instrument for payment insurance and insurance of quality of performed works) in the total amount of HRK 419,419 thousand and HRK 371,483 thousand (as on 31 December 2021: Group - HRK 419,573 thousand and the Company - HRK 386,650 thousand) As its subsidiaries' co-debtor, the Company is additionally subject to a liability of HRK 37,612 thousand (as on 31 December 2021: HRK 43,515 thousand). The Group and the Company estimate that it is not probable that the contingent liabilities on account of bank guarantees will be collected since the Group and the Company, just as in the previous periods, have been meeting all their project-related contractual obligations.

During regular business operations, the Group was involved in several court proceedings, either as the plaintiff or the respondent. Based on the opinion of the Management Board and the legal consultant, reservations have been made for those disputes that could potentially result in a loss. In addition to the disputes for which reservations have been made, there are also court proceedings which, in the opinion of the Board and the legal consultant will not result in a loss.

Income and expenses

All significant changes in the income and expenses of the Company and the Group are stated in the Management Board's Report which is attached to these financial reports.

Borrowings

The amount of loans and other borrowings of the Company and the Group is described in more detail and presented in the Management Board's Report which is attached to these financial reports.

Employees

As of 30 September 2022, the Company had 714 employees, while the Group had 1,094 employees.

The employee structure per Group company is given below:

Dalekovod Group
Number of employees	30.06.2022	30.09.2022
Dalekovod DD	759	714
Proizvodnja (MK i OSO i Cinčaona do 2019)	268	263
Dalekovod projekt	93	93
EMU	10	10
Other affiliates	10	14
Total Group	1,140	1,094

Expense capitalisation

In the first nine months of 2022, the Company and the Group did not capitalise salary expenses.

Deferred tax asset and liability

The Company and the Group have stated all deferred tax assets in the Financial Position Report and there has been no change in that matter compared to the previous period.

Capital

As on 30 September 2022, the capital was divided in 41,247,193 shares with a nominal value of HRK 10 per share.

As of 30 September 2022, the shareholder structure is as follows:

		Number of shares	Share
Shareholders	30.09.2022.	30.06.2022.	30.09.2022.	30.06.2022.
Napredna energetska rješenja d.o.o.	31,000,000	31,000,000	75.16%	75.16%
Financial Institutions	6,962,879	7,605,796	16.88%	18.44%
MF ENA d.o.o.	2,400,000	2,400,000	5.82%	5.82%
Konsolidator d.o.o.	-	122,712	-	0.30%
Meritus Global Strategics d.o.o.	627,000	-	1.52%	-
Individuals	168,458	110,941	0.41%	0.27%
Others	88,164	7,052	0.21%	0.02%
Own Shares	692	692	0.00%	0.00%
Total	41,247,193	41,247,193	100%	100%

Merger, acquisition, sale, establishment

In the first half of 2022, a branch was established in Germany and the share in the associated company Officium partner d.o.o. was sold.

There were no other mergers, acquisitions, sales or foundings.

Uncertainty

In the 2022, there were no identified items of suspicious and controversial receivables that could affect the business continuity of the Company and the Group.

Events after the balance sheet date

From 1 October 2022 until the reporting date, there were no events requiring disclosure.

Other disclosures

Other disclosures related to the understanding and interpretation of these reports are set out in the Management Board's Report which is attached to these financial reports.

List of related companies and entrepreneurs

The list of related companies and entrepreneurs is given in the Management Board's Report which is attached to these financial reports. The amount of capital for each related company in which Dalekovod d.d. has a stake or company owned by a subsidiary.

	Dalekovod d.d.	Proizvodnja MK d.o.o.	Dalekovod Projekt d.o.o.	Dalekovod EMU d.o.o.	Dalekovod Adria d.o.o.	EL-RA d.o.o.	Dalekovod Ukrajina d.o.o., Ukrajina	Dalekovod Ljubljana d.o.o., Slovenija	Dalekovod Mostar d.o.o., BIH	Dalekovod Norge AS, Norveška	Proizvodnja OSO d.o.o.	Cinčaonica Usluge d.o.o.
I. INITIAL (SUBSCRIBED) CAPITAL	412,471,930	196,719,400	20,889,400	1,496,000	20,000	492,000	13,591	1,634,706	60,523	1,461,685	22,474,300	20,000
II. CAPITAL RESERVES	-	-	-	-	-	-	-	-	-	-	-	-
III. RESERVES FROM PROFIT	-	-	4,589,656	-	34,384,809	-	-	(395,708)	(394,267)	(235)	62	-
IV. REVALUATION RESERVES	43,208,115	-	-	-	-	-	-	-	-	-	-	-
VI. RETAINED PROFIT OR LOSS BROUGHT FORWARD	(12,136,982)	(181,109,570)	-	665,450	(36,619,109)	(169,842)	163,768	14,143,331	14,358,958	63,067	1,175,380	(17,219,452)
VII. PROFIT OR LOSS FOR THE BUSINESS YEAR	(15,292,019)	(6,785,607)	348,116	(347,285)	(3,760)	23,661	(12,026)	4,269,949	1,590,731	7,837	(3,132,083)	(550,291)
Total capital	428,251,044	8,824,223	25,827,172	1,814,165	(2,218,060)	345,819	165,333	19,652,278	15,615,945	1,532,354	20,517,659	(17,749,743)