Dalekovod d.d.

Quarterly Report • Jun 11, 2024

SADRŽAJ

BOARD REPORT _____________	4
Key messages______________	4
The Group's and Company's financial result for the period from January to March 2023	__ 6
Pregled poslovanja ključnih segmenata Grupe ______	Error! Bookmark not defined.
Financial results of Group Companies in the period from January to March 2023	_______ 10
Financial position of the Group and the Company ________	11
Financial debt of the Group and the Company ___________	11
statement___________ 13
GROUP'S FINANCIAL STATEMENT FOR THE PERIOD FROM JANUARY TO MARCH 202314
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 MARCH 2023	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
General Information _____________	24
General Information (continued)__________	25

2

DLKV-R-A ordinary share listed on the Official Market of the Zagreb Stock Exchange Notice in accordance with the Capital Market Act

OPERATING INCOME, EBITDA AND NET PROFIT OF THE GROUP

(January - March 2023)

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

(January - March 2023)

BOARD REPORT

Key messages

Although macroeconomic and political circumstances still call for caution, all markets where Dalekovod Group is significantly present or growing with operations (Croatia, Sweden, Norway, Slovenia, Bosnia and Herzegovina, Macedonia, and Germany) show strong investment momentum, and Dalekovod is successfully positioning itself under the circumstances. The recovery of business is particularly noticeable in new contracting. As of March 31, 2023, the Group had a Book of Contracts for more than 247 million euros, which favorably affects the stability of income in the next period and the profitability of operations.

As a result of such a better position, the first quarter of the Group saw a 19 percent increase in operating income compared to the same period of the previous year, amounting to EUR 28 million. This is a continuation of the trend that appeared in the third and fourth quarters of 2022. The parent company, Dalekovod d.d., significantly impacted the Group's revenue growth. (hereinafter: the Company), and the other components of the Group (Proizvodnja OSO d.o.o., Dalekovod Projekt d.o.o., EMU d.o.o., Dalekovod Mostar d.o.o.) achieved better results or results in line with the first quarter of 2022. The result of Dalekovod Ljubljana d.o.o. is influenced by the completion of the significant Cirkovce-Pince 2x440 kV project and the newly started activities on the new project Divača - Pivka. The delayed activities on projects in Croatia and Slovenia influence the result of Proizvodnja MK.

The EBITDA of the Group in the reporting period amounts to 871 thousand euros and is higher by 3.4 million euros compared to the previous period when a negative EBITDA of 2.6 million euros was realized. The high level of contracted work contributes the most to such achievement. Although the usual seasonal effect and slightly worse weather than expected affected the postponement of works on certain projects, the achieved EBITDA of the Dalekovod Group is at the expected level. With the continuation of positive trends, expectations of the level of realization and profitability for the second quarter of 2023 are positive.

Due to the current situation, force majeure has been declared on both projects in Ukraine. Still, the activity continues on the Zaporizshka Project, and the effects are recorded upon payment of situations. At the same time, the possibility of changing the Contract is being considered for the Dniprovska Project with the investor due to war damage.

With the implementation of the recapitalization and the successful completion of the pre-bankruptcy settlement, Dalekovod Group continues a new development phase in which it can use all previous experience, acquired knowledge, and proven successful implementation of complex projects in significantly difficult circumstances in combination with the implemented restructuring of business processes and synergistic effects within the Končar Group.

The industry in which Dalekovod Group competes expects a significant boom in the future for several key reasons: (i) a relatively old transmission network that requires renovation; (ii) the shift towards renewable energy sources and the general trend of transition from energy produced from traditional fossil sources to electricity produced from renewable sources; (iii) implementation of tenders postponed in previous periods due to the COVID 19 pandemic; (iv) the resolution of the Ukrainian crisis is also expected, which would calm the situation on the material market and create the conditions for significant new jobs in the reconstruction of the Ukrainian infrastructure.

Therefore, in the coming period, we expect a continuation of strong tender activity in the energy and transport infrastructure, with a high level of predictability, both through the implementation of NPOO projects and through strong investment activity in the form of the implementation of green and digital transition activities in the markets where the Dalekovod Group traditionally operates and has a strong presence.

The implemented financial and operational restructuring will enable the Dalekovod Group to continue operating in the traditional markets of Scandinavia, the Region, Central and Eastern Europe, and the domestic market with the possibility of increasing business profitability. It will also support continued entry into new markets, such as Germany, where the first projects were successfully completed. This opens up the possibility of further strengthening the position in this potent market (and it is additionally expected that 30% of all investments in Europe will be on the German market, according to ENTSO) and on markets that will contribute to increasing the operating margin.

The Dalekovod Group will continue to invest significantly in the health and safety of its employees and increase investments in sustainable development to achieve a balance between the environment, society, and our activities to meet the development requirements without jeopardizing the prospects of future generations.

Indicators		Dalekovod Grupa		Dalekovod d.d.
(in 000 EUR)	I-III 2022	I-III 2023	Index	I-III 2022	I-III 2023	Index
Operating income	23,741	28,189	119	13,445	20,712	154
Sales revenue	23,262	28,073	121	11,520	20,494	178
Operating expenses	27,322	28,175	103	17,254	20,736	120
EBITDA	(2,577)	871	3,448 €	(2,895)	745	3,640 €
EBIT	(3,581)	15	3,596 €	(3,809)	(24)	3,785 €
Net profit	(3,468)	(350)	3,118	(3,693)	(366)	3,327 €
DISCONTINUED OPERATIONS	22	-	-22 €	-	-	-
Net profitafter discontinued operations	(3,446)	(350)	3,096 €	(3,693)	-	3,693 €
EBITDA margin	-10.9%	3.1%		-21.5%	3.6%

The Group's and Company's financial result for the period from January to March 2023

* In accordance with international financial standards, the items of the profit and loss account and the report on the financial position of the Group and the Company in the previous period, i.e. in 2022 and also in 2023, were adjusted for the financial effect of the aforementioned transaction, i.e. discontinued operations.

The operating income of the Group in 2023 amounted to EUR 28 million and is higher by 19 percent compared to the same period of the previous year, while the operating income of the Company amounted to EUR 21 million and is higher by 54 percent compared to the same period of the previous year. EBITDA (business income - business expenses + depreciation) at the Group level amounts to 871 thousand euros, which represents an increase of 3.4 million euros compared to the same period of the previous year, mainly as a result of the increase in gross profit in Dalekovod d.d. due to increased activity. The EBITDA margin increased from -10.9 percent in 2022 to 3.1 percent in 2023. EBITDA at the Company level is 745 thousand euros, representing an increase of 3.6 million euros compared to the same period of the previous year, i.e., an increase in the EBITDA margin from -21.5 percent to 3.6 percent. The net loss of the Group in 2023 amounts to 350 thousand, while the net loss of the Company amounts to 366 thousand euros.

This result was caused by the previously mentioned key events that marked the year 2022, i.e., the impact of the COVID-19 pandemic on the activities of investors and, consequently, the low level of the Book of Contracts at the turn of 2022, as well as the challenges related to the Russian-Ukrainian crisis that affected the level of costs business, which failed to be fully collected from the investors.

Positive indicators and trends of business recovery, especially in contracting but also in implementation, became visible already during the third and fourth quarters of 2022, which has a favorable impact on the stability of income and business in the first quarter of 2023 and represents the basis for an optimistic view ahead.

Business overview of key segments of the Group

During the first quarter of 2023, the segment of realization of Energy projects (construction of transmission lines and substations) recorded an increase in revenue of 83% compared to the same period last year, and the total revenue amounts to 18.5 million euros. The profitability of both segments has increased significantly as a result of the high level of activity on active projects (especially in Sweden and Croatia and recording the billing situation of the delivered autotransformer in Ukraine).

The transmission line segment is currently performing work on 19 large projects (2 in Norway, 5 in Sweden, 4 in the region, 2 in Germany, and 6 in Croatia) and eight smaller projects, and the substation segment on 11 (3 in Croatia, 3 in Norway, 4 in Macedonia and 1 in Ukraine).

In 2023, in the Sales Sector (Transmission Line and Substation segment), jobs with a total value of 37.6 million euros were contracted.

The Infrastructure project realization segment recorded a 34.07% decrease in revenue compared to the same period of the previous year, and the total revenue in the first quarter of 2023 amounts to 1.7 million euros. The most significant part of the income came from the construction projects of the railways Križevci-Botovo, Zaprešić-Savski Marof, and Vinkovci-Vukovar. The profitability of the sector is in line with expectations. The most significant investors in the subject sector are HŽ Infrastruktur and Croatian Roads. Currently, 12 projects are active, and work is taking place on eight construction sites. In Q1/2023, the projects "Obilaznica Omiš" were contracted for the client Hrvatske Cesta whose contracted value is €8,125,322.90, and "Antenna mast Čista Mlaka" for the client Telemach Hrvatska whose contracted value is €162,961.00.

The production segment is realized through two companies - Proizvodnja MK d.o.o. and Production OSO d.o.o.

Revenues of Production MK d.o.o. in 2023 are lower by 65 percent compared to the same disease the previous year and amount to 950 thousand euros, and the reason for this is the impact of postponed activities on projects in Croatia and Slovenia.

Company Proizvodnja OSO d.o.o. produced/processed 664.5 tons of equipment in the first quarter of 2023, an increase of 240% compared to the same period of the previous year. The increase in quantitative indicators results from increased activities of key customers, strong tender activity, and very good filling of the book of contracted jobs, which favorably affects the stability of income in the next period. The business income of the company Proizvodnja OSO d.o.o. in the first quarter of 2023

follows the growth of the production volume and is higher by 78.8% compared to the same disease of the previous year.

The realized EBITDA of the production segment, that is, of both companies, amounts to 630 thousand euros and is higher by 862 thousand euros compared to the same period of the previous year.

The design segment related to the activities of Dalekovod Projekt d.o.o. recorded a 12% increase in business revenues compared to the previous year, amounting to EUR 1 million (2022 – EUR 0.94 million)—the rise in income results from a solid move to the foreign market, especially the Swedish market. Respecting the cyclicality of design activities, a satisfactory level of profitability was maintained. Considering the stable level of contracted jobs, realization for the next period is ensured.

Dalekovod Ljubljana d.o.o. achieved 245 thousand euros in 2023, and the reduced level of business income is related to the completion of the Cirkovce-Pince 2x400kV project. Due to the contracted project of 110 Kv Divača-Pivka-Ilirska Bistrica, realization is ensured for the next period. In the coming period, an increase in income and EBITDA is expected from the activities of the realization. The realized EBITDA of the company in 2023 was -375 thousand euros.

Dalekovod Emu d.o.o. operates at locations in Zagreb and Vela Luka and generated revenue in the first quarter of 2023 for 135 thousand euros. The company performs tasks in the measurement and testing of electromagnetic fields of high and low frequencies, as well as measuring electricity meters. Although EMP measurements are a legal obligation of companies that own sources of HF and LF radiation, the measurement is difficult due to the very access to the sources of radiation, and testers have to enter private and business facilities to perform the measurement. The second business segment, the calibration of meters in its storage facility in Vela Luka, is still at the level of HEP's annual needs for installing meters in new facilities, while the complete replacement of old meters with new smart meters is expected in the coming period.

Dalekovod Mostar d.o.o. in 2023 achieved revenues of 2.3 million euros, which represents a slight increase compared to the same period of the previous year. The company's EBITDA for the first quarter is EUR 65 thousand, slightly lower than last year.

The increased income results from the high level of contracted jobs during 2022 and the accelerated implementation of projects contracted during 2021 and 2022, among other things, due to investments by our existing or new Investors in RES.

Financial results of Group Companies in the period from January to March 2023

Company name		Operating income			EBITDA
(in 000 EUR)	I-III 2022	I-III 2023	Index		I-III 2022	I-III 2023	Index
Dalekovod d.d.	13,445	20,712	154		(2,895)	745	-26
Proizvodnja MK d.o.o.	2,713	950	35		(152)	17	-11
Proizvodnja OSO d.o.o.	2,223	3,976	179		(80)	613	-771
Dalekovod Ljubljana d.o.o.	5,620	245	4		707	(375)	-53
Dalekovod Projekt d.o.o.	942	1,060	112		(122)	(37)	30
Dalekovod Mostar d.o.o.	2,203	2,277	103		86	65	75
Cinčaonica Usluge d.o.o.*	22	-	-		22	-	-22 €
Dalekovod EMU d.o.o.	70	135	193		(16)	40	-257
Other affiliates	5	5	92		(2)	(3)	110
Elimination	(3,502)	(1,171)	33		(126)	(194)	-68€
Total Group	23,741	28,189	119		(2,577)	871	-34
Discontinued operations	22	-	-		22	-	-22 €

* company in liquidation

Financial position of the Group and the Company

Dalekovod Group	Dalekovod Group				Dalekovod d.d.
(in 000 EUR)	31.12.2021	31.12.2022	Index		31.12.2021	31.12.2022	Index
RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID	-	-	-		-	-	-
ASSETS	129,642	126,365	97		120,445	112,346	93
Fixed assets	38,061	39,137	103		41,874	43,448	104
Current assets	91,581	87,228	95		78,571	68,898	88
LIABILITIES	63,899	61,628	96		60,407	52,674	87
Provisions	3,401	3,401	100		3,157	3,157	100
Long-term liabilities	5,920	5,319	90		6,336	5,650	89
Short-term liabilities	54,578	52,908	97		50,915	43,867	86
CAPITAL AND RESERVES	65,742	64,736	98		60,039	59,673	99

Compared to December 31, 2022, there were no significant changes in the financial position of the Company and the Group.

Financial debt of the Group and the Company

Type of financial debt		Dalekovod Grupa			Dalekovod d.d.
(in 000 EUR)	31.12.2022	31.03.2023	Indeks		31.12.2022	31.03.2023	Indeks
Lease liabilities	4,180	3,660	88		4,051	3,507	87
Bonds	1,728	1,540	89		2,281	2,033	89
Bank loans	2,378	2,165	91		3,327	3,151	95
Total financial debt	8,285	7,365	89		9,659	8,690	90
Cash	3,784	10,969	290		2,837	9,111	321
Net financial debt	4,501	(3,603)	-80		6,822	(420)	-6
Financial debt*	8,285	7,365	89		9,659	8,690	90

In February 2023, the regular payment installment of the bonds was due, which reduced the bond debt compared to December 31, 2022.

Lease liabilities were also reduced due to repayment of regular installments of financial and operational leasing.

DLKV-R-A ordinary share listed on the Official Market of the Zagreb Stock Exchange Notice in accordance with the Capital Market Act

In the reporting period January-March 2023, consolidated reports of the Dalekovod Group include:

• Dalekovod d.d., Croatia
• Proizvodnja MK d.o.o., Croatia
• Proizvodnja OSO d.o.o., Croatia
• Cinčaonica usluge u likvidaciji d.o.o., Croatia (discontinued operation)
• Dalekovod Projekt d.o.o., Croatia
• Dalekovod EMU d.o.o., Croatia
• Dalekovod Adria d.o.o., Croatia
• EL-RA d.o.o., Croatia
• Dalekovod Mostar d.o.o., Bosnia and Herzegovina
• Dalekovod Ljubljana d.o.o., Slovenia
• Dalekovod Norge AS, Norway
• Dalekovod Ukrajina d.o.o., Ukraine

Management Board of Dalekovod d.d.

Tomislav Rosandić Eugen Paić-Karega Chairman of the Management Board Member of the Management Board

Tvrtko Zlopaša Member of the Management Board

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, 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.

Management Board of Dalekovod d.d.

Tomislav Rosandić Eugen Paić-Karega Chairman of the Management Board Member of the Management Board

Tvrtko Zlopaša Member of the Management Board

GROUP'S FINANCIAL STATEMENT FOR THE PERIOD FROM JANUARY TO MARCH 2023

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	38,061,324	39,137,327
I INTANGIBLE ASSETS (ADP 004 to 009)	003	982,920	942,032
II TANGIBLE ASSETS (ADP 011 to 019)	010	31,829,052	30,329,284
III FIXED FINANCIAL ASSETS (ADP 021 to 030)	020	961,747	958,577
IV RECEIVABLES (ADP 032 to 035) V DEFERRED TAX ASSETS	031 036	4,287,605 -	6,907,434 -
C) CURRENT ASSETS (ADP 038+046+053+063)	037	90,284,287	86,028,546
I INVENTORIES (ADP 039 to 045)	038	10,510,241	13,688,365
II RECEIVABLES (ADP 047 to 052)	046	75,746,980	61,064,348
III CURRENT FINANCIAL ASSETS (ADP 054 to 062)	053	243,255	307,472
IV CASH AT BANK AND IN HAND	063	3,783,811	10,968,361
D ) PREPAID EXPENSES AND ACCRUED INCOME	064	1,296,225	1,198,954
E) TOTAL ASSETS (ADP 001+002+037+064)	065	129,641,836	126,364,827
OFF-BALANCE SHEET ITEMS	066	54,510,286	60,049,344
LIABILITIES			-
A) CAPITAL AND RESERVES (ADP 068 to 070+076+077+081+084+087)	067	65,742,328	64,735,863
I INITIAL (SUBSCRIBED) CAPITAL	068	54,744,433	54,744,433
II CAPITAL RESERVES	069	-	-
III RESERVES FROM PROFIT (ADP 071+072-073+074+075)	070	3,992,754	3,336,680
IV REVALUATION RESERVES	076	6,404,565	6,404,565
V FAIR VALUE RESERVES (ADP 078 to 080)	077	-	-
VI RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 082-083)	083	(144,167)	600,576
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 085-086)	086	744,743	(350,391)
VIII MINORITY (NON-CONTROLLING) INTEREST	089	-	-
B) PROVISIONS (ADP 089 to 094)	090	3,400,631	3,400,631
C) LONG-TERM LIABILITIES (ADP 096 to 106)	097	5,920,032	5,318,972
D) SHORT-TERM LIABILITIES (ADP 108 to 121)	109	49,066,854	47,013,979
E) ACCRUALS AND DEFERRED INCOME	124	5,511,992	5,895,382
F) TOTAL – LIABILITIES (ADP 067+088+095+107+122)	125	129,641,836	126,364,827
G) OFF-BALANCE SHEET ITEMS	126	54,510,286	60,049,344

Profit and loss account

Item	AOP	year	Same period of the previous	Current period
	code	Cumulative	Quarter	Cumulative	Quarter
1	2	3	4	5	6
I OPERATING INCOME (ADP 126 to 130)	001	23,741,002	23,741,002	28,189,345	28,189,345
1 Income from sales with undertakings within the group	002	-	-	606,653	606,653
2 Income from sales (outside group)	003	23,261,508	23,261,508	27,466,123	27,466,123
5 Other operating income (outside the group)	006	479,494	479,494	116,569	116,569
II OPERATING EXPENSES (ADP 132+133+137+141+142+143+146+153)	007	27,321,641	27,321,641	28,174,584	28,174,584
1 Changes in inventories of work in progress and finished goods	008	(91,127)	(91,127)	(681,516)	(681,516)
2 Material costs (ADP 134 to 136)	009	13,989,056	13,989,056	18,348,456	18,348,456
a) Costs of raw materials and consumables	010	5,012,372	5,012,372	8,598,605	8,598,605
b) Costs of goods sold	011	2,166,284	2,166,284	3,217,791	3,217,791
c) Other external costs	012	6,810,400	6,810,400	6,532,060	6,532,060
3 Staff costs (ADP 138 to 140)	013	7,824,476	7,824,476	6,691,612	6,691,612
a) Net salaries and wages	014	5,222,444	5,222,444	4,592,801	4,592,801
b) Tax and contributions from salary costs	015	1,720,797	1,720,797	1,419,561	1,419,561
c) Contributions on salaries	016	881,235	881,235	679,250	679,250
4 Depreciation	017	1,003,740	1,003,740	856,542	856,542
5 Other costs	018	1,665,851	1,665,851	976,786	976,786
8 Other operating expenses	029	2,929,645	2,929,645	1,982,704	1,982,704
III FINANCIAL INCOME (ADP 155 to 164)	030	491,457	491,457	1,564,790	1,564,790
7 Other interest income	037	10,213	10,213	4,073	4,073
8 Exchange rate differences and other financial income	038	481,244	481,244	1,560,717	1,560,717
IV FINANCIAL EXPENSES (ADP 166 to 172)	041	371,487	371,487	1,922,369	1,922,369
3 Interest expenses and similar expenses	044	244,752	244,752	1,779,448	1,779,448
4 Exchange rate differences and other expenses	045	115,236	115,236	142,921	142,921
7 Other financial expenses	048	11,499	11,499	-	-
IX TOTAL INCOME (ADP 125+154+173 + 174)	053	24,232,459	24,232,459	29,754,135	29,754,135
X TOTAL EXPENDITURE (ADP 131+165+175 + 176)	054	27,693,128	27,693,128	30,096,953	30,096,953
XI PRE-TAX PROFIT OR LOSS (ADP 177-178)	055	(3,460,669)	(3,460,669)	(342,818)	(342,818)
2 Pre-tax loss (ADP 178-177)	057	(3,460,669)	(3,460,669)	(342,818)	(342,818)
XII INCOME TAX	058	7,072	7,072	7,573	7,573
XIII PROFIT OR LOSS FOR THE PERIOD (ADP 179-182)	059	(3,467,741)	(3,467,741)	(350,391)	(350,391)
2 Loss for the period (ADP 182-179)	061	(3,467,741)	(3,467,741)	(350,391)	(350,391)
XIV PRE-TAX PROFIT OR LOSS OF DISCONTINUED OPERATIONS (ADP 187-188	062	21,514	21,514	-	-
1 Pre-tax profit from discontinued operations	063	21,514	21,514	-	-
1 Discontinued operations profit for the period (ADP 186-189) XVI PRE-TAX PROFIT OR LOSS (ADP 179+186)	066 068	21,514 (3,439,155)	21,514 (3,439,155)	- -	- -
2 Pre-tax loss (ADP 192)	070	3,439,155	3,439,155	-	-
XVII INCOME TAX (ADP 182+189)	071	7,072	7,072	-	-
XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 192-195)	072	(3,446,227)	(3,446,227)	-	-
2 Loss for the period (ADP 195-192)	074	3,446,227	3,446,227	-	-
XIX PROFIT OR LOSS FOR THE PERIOD (ADP 200+201)	075	(3,446,227)	(3,446,227)	(350,391)	(350,391)
1 Attributable to owners of the parent	076	(3,446,227)	(3,446,227)	(350,391)	(350,391)
STATEMENT OF OTHER COMPRHENSIVE INCOME (to be filled in by undertakings subject to IFRS)
I PROFIT OR LOSS FOR THE PERIOD	078	(3,446,227)	(3,446,227)	(350,391)	(350,391)
II OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX (ADP 204 to 211)	079	37,842	37,842	(656,074)	(656,074)
1 Exchange rate differences from translation of foreign operations	088	37,842	37,842	(656,074)	(656,074)
V NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 203-212)	097	37,842	37,842	(656,074)	(656,074)
VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 202+213)	098	(3,408,385)	(3,408,385)	(1,006,465)	(1,006,465)
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	(3,408,385)	(3,408,385)	(1,006,465)	(1,006,465)
1 Attributable to owners of the parent	100	(3,408,385)	(3,408,385)	(1,006,465)	(1,006,465)

DLKV-R-A ordinary share listed on the Official Market of the Zagreb Stock Exchange Notice in accordance with the Capital Market Act

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	(3,439,155)	(342,818)
2 Adjustments (ADP 003 to 010):	2	(754,398)	4,165,694
a) Depreciation	3	1,003,740	856,542
d) Interest and dividend income	6	(10,213)	(4,073)
e) Interest expenses	7	244,752	1,779,448
f) Provisions	8	(124,522)	-
g) Exchange rate differences (unrealised)	9	(362,384)	1,533,777
h) Other adjustments for non-cash transactions and unrealised gains and losses	10	(1,505,771)	-
I Cash flow increase or decrease before changes in working capital (ADP 001+002)	11	(4,193,553)	3,822,876
3 Changes in the working capital (ADP 013 to 016)	12	(547,408)	5,511,214
a) Increase or decrease in short-term liabilities	13	(4,192,182)	(2,247,910)
b) Increase or decrease in short-term receivables	14	5,067,069	14,682,632
c) Increase or decrease in inventories	15	(1,422,295)	(3,178,124)
d) Other increase or decrease in working capital	16	-	(3,745,384)
II Cash from operations (ADP 011+012)	17	(4,740,961)	9,334,090
4 Interest paid	18	(4,205,562)	(109,460)
5 Income tax paid	19	(650,158)	(557,886)
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019)	20	(9,596,681)	8,666,744
Cash flow from investment activities
1 Cash payments for the purchase of fixed tangible and intangible assets	28	(264,378)	(426,033)
3 Cash payments for loans and deposits for the period	30	-	(95,950)
IV Total cash payments from investment activities (ADP 028 to 032)	33	(264,378)	(521,983)
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033)	34	(264,378)	(521,983)
Cash flow from financing activities
1 Cash receipts from the increase in initial (subscribed) capital	35	54,416,351	-
V Total cash receipts from financing activities (ADP 035 to 038)	39	54,416,351	-
1 Cash payments for the repayment of credit principals, loans and other borrowings and debt financial	40	(38,011,844)	(256,657)
3 Cash payments for finance lease	42	(2,362,427)	(356,624)
5 Other cash payments from financing activities	44	-	(392,106)
VI Total cash payments from financing activities (ADP 040 to 044)	45	(40,374,271)	(1,005,387)
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045)	46	14,042,080	(1,005,387)
1 Unrealised exchange rate differences in respect of cash and cash equivalents	47	-	45,176
D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP 020+034+046+047)	48	4,181,021	7,184,550
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	49	7,676,904	3,783,811
F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD(ADP 048+049)	50	11,857,925	10,968,361

Report on the changes in the capital for the current period

		Attributable to owners of the parent
				Reserves	Treasury						Total
Item		Initial		for	shares and				Retained profit	Profit/loss for	attributable to
	AOP	(subscribed)	Legal	treasury	holdings	Statutory	Other	Revaluation	/ loss brought	the business	owners of the
	code	capital	reserves	shares	(deductibl	reserves	reserves	reserves	forward	year	parent	Total capital and reserves
1											18 (3 do 6 - 7
	2	3	5	6	7	8	9	10	16	17	+ 8 do 17)	20 (18+19)
Current period
1 Balance on the first day of the current business year	28	54,744,433	22,007	1,123,568	1,123,568	8	3,970,739	6,404,565	(144,167)	744,743	65,742,328	65,742,328
4 Balance on the first day of the current business year (restated) (ADP 2	31	54,744,433	22,007	1,123,568	1,123,568	8	3,970,739	6,404,565	(144,167)	744,743	65,742,328	65,742,328
5 Profit/loss of the period	32	-	-	-	-	-	-	-	-	(350,391)	(350,391)	(350,391)
6 Exchange rate differences from translation of foreign operations	33	-	-	-	-	-	(656,074)	-	-	-	(656,074)	(656,074)
22 Transfer to reserves according to the annual schedule	49								744,743	(744,743)	-	-
24 Balance on the last day of the previous business year reporting period	51	54,744,433	22,007	1,123,568	1,123,568	8	3,314,665	6,404,565	600,576	(350,391)	64,735,863	64,735,863
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	-	-	-	-	-	(656,074)	-	-	-	(656,074)	(656,074)
II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP 3	53	-	-	-	-	-	(656,074)	-	-	(350,391)	(1,006,465)	(1,006,465)
III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED	54	-	-	-	-	-	-	-	744,743	(744,743)	-	-

18

Report on the changes in the capital for the previous period

		Attributable to owners of the parent
				Reserves	Treasury						Total
Item		Initial		for	shares and				Retained profit	Profit/loss for	attributable to
	AOP	(subscribed)	Legal	treasury	holdings	Statutory	Other	Revaluation	/ loss brought	the business	owners of the
	code	capital	reserves	shares	(deductibl	reserves	reserves	reserves	forward	year	parent	Total capital and reserves
1											18 (3 do 6 - 7
	2	3	5	6	7	8	9	10	16	17	+ 8 do 17)	20 (18+19)
Previous period
1 Balance on the first day of the previous business year	1	54,744,433	22,007	1,123,568	1,123,568	-	3,987,969	5,734,702	(2,513,316)	2,130,240	64,106,035	64,106,035
4 Balance on the first day of the previous business year (restated) (ADP 0	4	54,744,433	22,007	1,123,568	1,123,568	-	3,987,969	5,734,702	(2,513,316)	2,130,240	64,106,035	64,106,035
5 Profit/loss of the period	5	-	-	-	-	-	-	-	-	744,743	744,743	744,743
6 Exchange rate differences from translation of foreign operations	6	-	-	-	-	-	(17,230)	-	-	-	(17,230)	(17,230)
7 Changes in revaluation reserves of fixed tangible and intangible assets	7	-	-	-	-	-	-	669,863	238,909		908,772	908,772
13 Other changes in equity unrelated to owners	13					8					8	8
22 Transfer to reserves according to the annual schedule	22								2,130,240	(2,130,240)	-	-
24 Balance on the last day of the previous business year reporting period	24	54,744,433	22,007	1,123,568	1,123,568	8	3,970,739	6,404,565	(144,167)	744,743	65,742,328	65,742,328
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	-	-	-	-	8	(17,230)	669,863	238,909	-	891,550	891,550
II COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD (ADP	26	-	-	-	-	8	(17,230)	669,863	238,909	744,743	1,636,293	1,636,293
III TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD	27	-	-	-	-	-	-	-	2,130,240	(2,130,240)	-	-

COMPANY'S FINANCIAL STATEMENT FOR THE PERIOD FROM JANUARY TO MARCH 2023

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	41,874,457	43,447,907
I INTANGIBLE ASSETS (ADP 004 to 009)	003	769,040	733,001
II TANGIBLE ASSETS (ADP 011 to 019)	010	29,232,947	28,285,006
III FIXED FINANCIAL ASSETS (ADP 021 to 030)	020	7,584,865	7,522,466
IV RECEIVABLES (ADP 032 to 035)	031	4,287,605	6,907,434
V DEFERRED TAX ASSETS	036	-	-
C) CURRENT ASSETS (ADP 038+046+053+063)	037	77,293,424	67,740,605
I INVENTORIES (ADP 039 to 045)	038	1,119,299	1,239,982
II RECEIVABLES (ADP 047 to 052)	046	70,573,526	54,501,220
III CURRENT FINANCIAL ASSETS (ADP 054 to 062)	053	2,763,337	2,888,843
IV CASH AT BANK AND IN HAND	063	2,837,262	9,110,560
D ) PREPAID EXPENSES AND ACCRUED INCOME	064	1,278,010	1,156,893
E) TOTAL ASSETS (ADP 001+002+037+064)	065	120,445,891	112,345,405
OFF-BALANCE SHEET ITEMS	066	52,179,231	57,311,904
LIABILITIES
A) CAPITAL AND RESERVES (ADP 068 to 070+076+077+081+084+087)	067	60,038,697	59,672,623
I INITIAL (SUBSCRIBED) CAPITAL	068	54,744,433	54,744,433
II CAPITAL RESERVES	069	-	-
III RESERVES FROM PROFIT (ADP 071+072-073+074+075)	070	-	-
IV REVALUATION RESERVES	076	6,404,565	6,404,565
V FAIR VALUE RESERVES (ADP 078 to 080)	077	-	-
VI RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 082-083)	083	(1,371,946)	(1,110,301)
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 085-086)	086	261,645	(366,074)
VIII MINORITY (NON-CONTROLLING) INTEREST	089	-	-
B) PROVISIONS (ADP 089 to 094)	090	3,157,017	3,157,018
C) LONG-TERM LIABILITIES (ADP 096 to 106)	097	6,335,662	5,650,192
D) SHORT-TERM LIABILITIES (ADP 108 to 121)	109	45,402,523	37,970,190
E) ACCRUALS AND DEFERRED INCOME	124	5,511,992	5,895,382
F) TOTAL – LIABILITIES (ADP 067+088+095+107+122)	125	120,445,891	112,345,405
G) OFF-BALANCE SHEET ITEMS	126	52,179,231	57,311,904

Profit and loss account

Item	AOP	Same period of the previous year		Current period
	code	Cumulative	Quarter	Cumulative	Quarter
1	2	3	4	5	6
I OPERATING INCOME (ADP 126 to 130)	001	13,445,146	13,445,146	20,711,863	20,711,863
1 Income from sales with undertakings within the group	002	425,745	425,745	585,928	585,928
2 Income from sales (outside group)	003	11,094,604	11,094,604	19,908,482	19,908,482
4 Other operating income with undertakings within the group	005	1,495,718	1,495,718	288,912	288,912
5 Other operating income (outside the group)	006	429,079	429,079	(71,459)	(71,459)
II OPERATING EXPENSES (ADP 132+133+137+141+142+143+146+153)	007	17,253,940	17,253,940	20,735,765	20,735,765
1 Changes in inventories of work in progress and finished goods	008	-	-	15	15
2 Material costs (ADP 134 to 136)	009	7,674,414	7,674,414	13,111,675	13,111,675
a) Costs of raw materials and consumables	010	3,930,370	3,930,370	7,297,830	7,297,830
b) Costs of goods sold	011	41,346	41,346	1,016,021	1,016,021
c) Other external costs	012	3,702,698	3,702,698	4,797,824	4,797,824
3 Staff costs (ADP 138 to 140)	013	5,813,813	5,813,813	4,663,380	4,663,380
a) Net salaries and wages	014	3,957,047	3,957,047	3,308,663	3,308,663
b) Tax and contributions from salary costs	015	1,240,161	1,240,161	932,109	932,109
c) Contributions on salaries	016	616,605	616,605	422,608	422,608
4 Depreciation	017	914,242	914,242	769,194	769,194
5 Other costs	018	899,708	899,708	719,486	719,486
8 Other operating expenses	029	1,951,763	1,951,763	1,472,015	1,472,015
III FINANCIAL INCOME (ADP 155 to 164)	030	515,671	515,671	1,665,969	1,665,969
4 Other interest income from operations with undertakings within the group	034	15,108	15,108	15,561	15,561
7 Other interest income	037	8,070	8,070	1,396	1,396
8 Exchange rate differences and other financial income	038	492,493	492,493	1,649,012	1,649,012
IV FINANCIAL EXPENSES (ADP 166 to 172)	041	400,210	400,210	2,006,534	2,006,534
1 Interest expenses and similar expenses with undertakings within the group	042	29,455	29,455	5,157	5,157
3 Interest expenses and similar expenses	044	247,708	247,708	140,315	140,315
4 Exchange rate differences and other expenses	045	123,047	123,047	1,861,062	1,861,062
IX TOTAL INCOME (ADP 125+154+173 + 174)	053	13,960,817	13,960,817	22,377,832	22,377,832
X TOTAL EXPENDITURE (ADP 131+165+175 + 176)	054	17,654,150	17,654,150	22,742,299	22,742,299
XI PRE-TAX PROFIT OR LOSS (ADP 177-178)	055	(3,693,333)	(3,693,333)	(364,467)	(364,467)
2 Pre-tax loss (ADP 178-177)	057	(3,693,333)	(3,693,333)	(364,467)	(364,467)
XII INCOME TAX	058	-	-	1,607	1,607
XIII PROFIT OR LOSS FOR THE PERIOD (ADP 179-182)	059	(3,693,333)	(3,693,333)	(366,074)	(366,074)
2 Loss for the period (ADP 182-179)	061	(3,693,333)	(3,693,333)	(366,074)	(366,074)
XVI PRE-TAX PROFIT OR LOSS (ADP 179+186)	068	(3,693,333)	(3,693,333)	-	-
2 Pre-tax loss (ADP 192)	070	3,693,333	3,693,333	-	-
XVII INCOME TAX (ADP 182+189)	071	-	-	-	-
XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 192-195)	072	(3,693,333)	(3,693,333)	-	-
2 Loss for the period (ADP 195-192)	074	3,693,333	3,693,333	-	-
XIX PROFIT OR LOSS FOR THE PERIOD (ADP 200+201)	075	(3,693,333)	(3,693,333)	(366,074)	(366,074)
1 Attributable to owners of the parent	076	(3,693,333)	(3,693,333)	(366,074)	(366,074)
STATEMENT OF OTHER COMPRHENSIVE INCOME (to be filled in by undertakings subject to IFRS)
I PROFIT OR LOSS FOR THE PERIOD	078	(3,693,333)	(3,693,333)	(366,074)	(366,074)
VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 202+213)	098	(3,693,333)	(3,693,333)	(366,074)	(366,074)
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	(3,693,333)	(3,693,333)	(366,074)	(366,074)
1 Attributable to owners of the parent	100	(3,693,333)	(3,693,333)	(366,074)	(366,074)

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	(3,693,333)	(364,467)
2 Adjustments (ADP 003 to 010):	2	(788,019)	2,413,713
a) Depreciation	3	914,242	769,194
d) Interest and dividend income	6	(23,178)	(32,518)
e) Interest expenses	7	277,163	145,472
f) Provisions	8	(124,522)	-
g) Exchange rate differences (unrealised)	9	(352,814)	1,531,565
h) Other adjustments for non-cash transactions and unrealised gains and losses	10	(1,478,910)	-
I Cash flow increase or decrease before changes in working capital	11	(4,481,352)	2,049,246
3 Changes in the working capital (ADP 013 to 016)	12	572,367	6,091,919
a) Increase or decrease in short-term liabilities	13	(3,284,892)	(7,432,333)
b) Increase or decrease in short-term receivables	14	3,869,285	16,072,306
c) Increase or decrease in inventories	15	(12,026)	(120,683)
d) Other increase or decrease in working capital	16	-	(2,427,371)
II Cash from operations (ADP 011+012)	17	(3,908,985)	8,141,165
4 Interest paid	18	(4,205,562)	(109,460)
5 Income tax paid	19	(650,158)	(474,376)
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019	20	(8,764,705)	7,557,329
Cash flow from investment activities		-	-
4 Dividends received	24	264,141	-
III Total cash receipts from investment activities (ADP 021 to 026)	27	264,141	-
1 Cash payments for the purchase of fixed tangible and intangible assets	28	(264,378)	(307,848)
3 Cash payments for loans and deposits for the period	30	(711,481)	(56,133)
IV Total cash payments from investment activities (ADP 028 to 03	33	(975,859)	(363,981)
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +03	34	(711,718)	(363,981)
Cash flow from financing activities		-	-
1 Cash receipts from the increase in initial (subscribed) capital	35	54,416,351	-
3 Cash receipts from credit principals, loans and other borrowings	37	-	59,999
V Total cash receipts from financing activities (ADP 035 to 038)	39	54,416,351	59,999
1 Cash payments for the repayment of credit principals, loans and other borrowin	40	(38,946,302)	(338,770)
3 Cash payments for finance lease	42	(2,362,427)	(355,194)
5 Other cash payments from financing activities	44	-	(329,794)
VI Total cash payments from financing activities (ADP 040 to 044)	45	(41,308,729)	(1,023,758)
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045	46	13,107,622	(963,759)
1 Unrealised exchange rate differences in respect of cash and cash equivalents	47	-	43,709
D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP 020+034+0	48	3,631,199	6,273,298
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERI	49	6,732,571	2,837,262
F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD(ADP	50	10,363,770	9,110,560

Report on the changes in the capital for the current period

Item	AOP	Initial (subscribed)	Reserves for treasury	y shares and holdings (deductible	Revaluation	Retained profit / loss brought	Profit/loss for	Total attributable to owners of the
	code	capital	shares	item)	reserves	forward	the business year	parent (	Total capital and reserves
1	2	3	6	7	10	16	17	+ 8 do 17)	20 (18+19)
Current period
1 Balance on the first day of the current business year	28	54,744,433	1,123,568	1,123,568	6,404,565	(1,371,946)	261,645	60,038,697	60,038,697
4 Balance on the first day of the current business year (restated) (ADP 2	31	54,744,433	1,123,568	1,123,568	6,404,565	(1,371,946)	261,645	60,038,697	60,038,697
5 Profit/loss of the period	32	-	-	-	-	-	(366,074)	(366,074)	(366,074)
22 Transfer to reserves according to the annual schedule	49					261,645	(261,645)	-	-
23 Balance on the last day of the current business year reporting period (	51	54,744,433	1,123,568	1,123,568	6,404,565	(1,110,301)	(366,074)	59,672,623	59,672,623
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	-	-	-	-	-	(366,074)	(366,074)	(366,074)
III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED	54	-	-	-	-	261,645	(261,645)	-	-

Report on the changes in the capital for the previous period

		Attributable to owners of the parent y
Item	AOP	Initial (subscribed)	Reserves for treasury	shares and holdings (deductible	Revaluation	Retained profit / loss brought	Profit/loss for	Total attributable to owners of the
	code	capital	shares	item)	reserves	forward	the business year	parent (	Total capital and reserves
1	2	3	6	7	10	16	17	+ 8 do 17)	20 (18+19)
Previous period
1 Balance on the first day of the previous business year	1	54,744,433	1,123,568	1,123,568	5,734,702	(3,128,420)	1,517,565	58,868,280	58,868,280
4 Balance on the first day of the previous business year (restated) (ADP 0	4	54,744,433	1,123,568	1,123,568	5,734,702	(3,128,420)	1,517,565	58,868,280	58,868,280
5 Profit/loss of the period	5	-	-	-	-	-	261,645	261,645	261,645
7 Changes in revaluation reserves of fixed tangible and intangible assets	7	-	-	-	669,863	238,909		908,772	908,772
22 Transfer to reserves according to the annual schedule	22					1,517,565	(1,517,565)	-	-
24 Balance on the last day of the previous business year reporting period	24	54,744,433	1,123,568	1,123,568	6,404,565	(1,371,946)	261,645	60,038,697	60,038,697
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	-	-	-	669,863	238,909	-	908,772	908,772
II COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD (ADP	26	-	-	-	669,863	238,909	261,645	1,170,417	1,170,417
III TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD	27	-	-	-	-	1,517,565	(1,517,565)	-	-

NOTES TO FINANCIAL STATEMENTS

Dalekovod joint stock company for engineering, production and construction

Ulica Marijana Čavića 4, 10 000 Zagreb, Croatia, 10001 Zagreb, P.O. Box 128 URL: www.dalekovod.hr, www.dalekovod.com E-mail: dalekovod@dalekovod.hr Share capital: HRK 412,471,930.00 / EUR 54,744,432.94. 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)

General Information

MANAGEMENT BOARD

Tomislav Rosandić - Chairman of the Management Board Eugen Paić-Karega – member of the Management Board Tvrtko Zlopaša – member of the Management Board

SUPERVISORY BOARD

Gordan Kolak (Chairman of the Supervisory Board), Josip Jurčević (Deputy Chairman of the Supervisory Board), Josip Lasić (member of the Supervisory Board), Božidar Poldrugač (member of the Supervisory Board), Damir Spudić (member of the Supervisory Board), Pavao Vujnovac (member of the Supervisory Board), Dražen Buljić (member of the Supervisory Board).

General Information (continued)

Description of products and services

In time, Dalekovod d.d. has specialised in the performance of "turnkey" contracts in the following fields:

• electric power facilities, especially transmission lines (0.4 to 750 kV)
• substations of all levels and voltage levels up to 500 kV
• overhead, underground and submarine cables up to 110 kV
• telecommunication facilities, all types of networks and antennas
• production of suspension and connection equipment for transmission lines and substations (0.4 to 750 kV)
• manufacture and installation of all metal parts for roads, especially road lighting, protective fences and traffic signalling, tunnel lighting and traffic management
• electrification of railway and tram tracks

Amendments to the Financial Standing and Performance Report

Major business events related to the amendments to the Financial Standing and Performance Report for the reporting quarterly period of the issuer in relation to the last business year have been described in the Management Board Report issued together with these financial statements.

Access to financial statements

The revised annual financial statements for the Company and the Group for 2022 are published on the Company's website (www.dalekovod.hr) and the website of the Zagreb Stock Exchange (eho.zse.hr).

Accounting policies

The Company's and Group's accounting policies applied in preparing the financial statements for 2023 are the same as the accounting policies applied in the annual financial statement for 2022.

Performance

An explanation of the Company's and Group's performance is given in the Management Board Report attached hereto.

Potential and assumed liabilities

As on 31 March 2023, the Group had concluded contracts whose performance had started, but has not been completed. The revenues assumed that are yet to accrue under these contracts are estimated at EUR 247 million.

As on 31 March 2023, 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 EUR 57,903 thousand and EUR 48,778 thousand (as on 31 December 2022: Group - EUR 52,903 thousand and the Company - EUR 43,960 thousand). As its subsidiaries' codebtor, the Company is additionally subject to a liability of EUR 6,793 thousand (as on 31 December 2022: EUR 6,478 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 expenditure

All the significant changes in the Company's and Group's income and expenditure are indicated in the Management Board Report attached hereto.

Borrowing

The amount of the loans and other Company's and Group's borrowings is described and given in the Management Board Report attached hereto.

Employees

As on 31 March 2023, the Company employed 674, while the Group employed 1,061.

The employee structure per Group company is given below:

Dalekovod Group
Number of employees	31.12.2022	31.03.2023
Dalekovod DD	700	674
Proizvodnja (MK i OSO i Cinčaona do 2019)	271	273
Dalekovod projekt	93	90
EMU	10	10
Other affiliates	14	14
Total Group	1,088	1,061

Cost capitalization

The Company and the Group have not capitalized salary costs in 2023.

Deferred tax assets and liabilities

The Company and the Group stated deferred tax assets in the Financial Standing Report, and there have been no changes in this regard in relation to the previous period.

Capital

As on 31 March 2023, the capital was divided in 41,247,193 shares in the nominal value of EUR 1.33 each (unofficial conversion at a fixed exchange rate).

The shareholder structure as on 31 March 2023 was as follows:

		Number of shares	Share
Shareholders	31.12.2022.	31.03.2023.	31.12.2022.	31.03.2023.
Napredna energetska rješenja d.o.o.	31,000,000	31,000,000	75.16%	75.16%
Financial Institutions	7,004,080	6,975,283	16.98%	16.91%
Foreigns	2,401,233	2,401,234	5.82%	5.82%
Individuals	200,729	226,387	0.49%	0.55%
Own Shares	988	988	0.00%	0.00%
Others	640,163	643,301	1.55%	1.56%
Total	41,247,193	41,247,193	100%	100%

Merger, acquisition, disposal, establishment

In the first quarter of 2023 there were no other mergers, acquisitions, disposals or establishments.

Uncertainty

In 2023, no items have been identified that would indicate doubtful or contested claims affecting the continuity of business operations of the Company and the Group.

Events after the balance sheet date

There were no events requiring reporting thereon from 1 April 2023 until the day of the report.

Other publications

Other publications related to understanding and interpreting these reports are indicated in the Management Board Report attached hereto.

List of associated companies

The list of associated companies is given in the Management Board Report attached hereto. The amount of the capital of each associated company in which Dalekovod d.d. has a share or a company owned by its subsidiary is indicated below:

	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	54,744,433	26,109,151	2,772,500	198,553	2,654	65,300	1,622	217,172	8,041	178,744	2,982,852	2,654
II. CAPITAL RESERVES	-	-	-	-	-	-	-	-	-	-	-	-
III. RESERVES FROM PROFIT	-	-	609,152	-	4,563,648	-	5	26,831	-	5	8	-
IV. REVALUATION RESERVES	6,404,565	-	-	-	-	-	-	-	-	-	-	-
VI. RETAINED PROFIT OR LOSS BROUGHT FORWARD	(1,110,301)	(23,872,889)	190,682	131,033	(4,860,551)	(20,943)	16,615	2,185,472	2,314,046	28,806	168,734	(2,387,396)
VII. PROFIT OR LOSS FOR THE BUSINESS YEAR	(366,074)	(97,510)	(78,123)	37,317	-	433	(1,542)	(375,495)	53,703	(155)	454,249	-
Total capital	59,672,624	2,138,753	3,494,211	366,904	(294,248)	44,790	16,700	2,053,980	2,375,790	207,401	3,605,843	(2,384,742)