Granolio d.d.

Earnings Release • Jul 31, 2019

Unconsolidated financial results for the six months period ended 30 June 2019 (unaudited)

General information on Granolio d.d.

GRANOLIO d.d. ("The Company") is a joint-stock company registered with the Commercial Court of Zagreb, Croatia.

The Company's tax number (OIB) is 59064993527, and its registration number (MBS) 080111595.

The Company's headquarter is located in Zagreb at Budmanijeva 5.

The Company has General Assembly, Supervisory Board and Management Board.

Subsidiaries

The Company holds 100% of the shares in the Zdenačka farma d.o.o.

It has a controlling influence in the decision-making process in Zdenka mliječni proizvodi d.o.o. which has been consolidated into the Granolio Group since 2011.

The Company also holds minority interests in the Žitozajednica d.o.o., Zagrebačke pekarne Klara d.o.o. and Prehrana trgovina d.d. companies.

Ownership in subsidiaries is presented in the organizational chart below:

Significant business events in the accounting period

As at 4 March 2019 The Company has signed a contract on the sales of investments into Žitar, one of its subsidiaries. Since the value of the investment has been impaired to its net realizable value in the financial statements for 2018, no profit nor loss from sale of investment has been recognized in Statement of total comprehensive income.

In January 2019 the Company has started to account for and pay interest on financial debt that is a part of pre-bankruptcy settlement.

Company's financial indicators for the six months of 2019

In thousands HRK
Granolio d.d.	1-6 2019	1-6 2018	change
Operating income	130.707	125.933	4.774	4%
Operating expenses	142.453	132.499	9.954	8%
EBIT	(11.746)	(6.566)	(5.180)	79%
EBIT margin	-9%	-5%
EBITDA	(6.454)	(1.373)	(5.081)	370%
EBITDA margin	-5%	-1%
Net financial result	(394)	290	(684)	(236%)
Net result for the period	(12.140)	(6.276)	(5.864)	(93%)

*EBITDA= EBIT + depreciation + impairment expenses

In the first half-year 2019 the Company has made lower operating result (EBIT) compared to the same period last year. The reason for that is high prices of wheat that are not followed by equal increase in sales prices of flour. The second reason is that Company does not have enough working capital to increase volume of trading in sowing materials and crops.

Company expects improving it's operating result to improve by the end of the year.

Net financial result represents the difference between financial revenues and financial expenses. In 2019 the Company started to account for an interest on the financial debt which is part of the prebankruptcy settlement.

			In thousands HRK
Granolio d.d.	30.6.2019	31.12.2018	change
Net asset (capital and reserves)	42.699	54.480	(11.781)	(22%)
Total debt to financial institutions	423.241	431.829	(8.588)	(2%)
Cash and cash equivalents	1.936	3.574	(1.638)	(46%)
Loans given, deposits etc.*	34.785	36.328	(1.543)	(4%)
Net debt	386.520	391.927	(5.407)	(1%)
Net debt/EBITDA		135,85
EBITDA for the last 12 months	(2.196)	2.885	(5.081)	(176%)

*Loans given, securities and deposits

Overview of the business operations for the six months of 2019 per business segments

The Company monitors its business operations through four business segments:

• 1. Flour
• 1. Sowing material (wholesale of: fertilizers, protective materials and seeds)
• 1. Trading (wholesale of grains, oil crops and bakery products)
• 1. Other (rendering services of storage, drying and reception of grains and oil crops at the reception stations, cattle breeding, other)

Sales income per business segments is shown by the following chart:

Sales income is approximately same as the income earned in the same period last year. Significant increase is recorded in trading segment and in the first half-year amounts 10m HRK (1-6 2018: 5m HRK).

Employees

In the six months period 2019 the Company employed 158 employees based on man-hour basis (in the six months period 2018: 149 employees).

Redemption of treasury shares

Based on the General Assembly decision as of 9 June 2016 the Company has transferred a portion of the profit earned in 2015 into the equity reserves for treasury shares in the amount of HRK 800 thousand.

Up to the publication of the Management Board report, the Company was not engaged in any activities relating to the redemption of own shares

Environment

Regarding the environmental protection, the Company has implemented comprehensive and systematic solutions and established environment-friendly production processes

Other

Supervisory Board has approved Company's financial statements for the six months period of 2019.

Annex 1		ISSUER'S GENERAL DATA
Reporting period:		1.1.2019 to	30.6.2019
Year:		2019
Quarter:		2.
		Quarterly financial statements
Registration number (MB):	01244272	Issuer's home Member State code:	Hrvatska
Entity's registration number (MBS):	080111595
Personal identification number (OIB):	59064993527	LEI:	213800O3Z6ZSDBAKG321
Institution code:	15989
Name of the issuer: Granolio d.d.
Postcode and town:	10000	Zagreb
Street and house number: Budmanijeva 5
	E-mail address: granolio@granolio.hr
	Web address: www.granolio.hr
Number of employees (end of the reporting	159
Consolidated report:	KN	(KN-not consolidated/KD-consolidated)	KN	KD
Audited:	RN	(RN-not audited/RD-audited)	RN	RD
Names of subsidiaries (according to IFRS):		Registered office:		MB:
				Yes
Bookkeeping firm:	No	(Yes/No)		No
Contact person: Jasenka Kordić			(name of the bookkeeping firm)
	(only name and surname of the contact person) Telephone: 01/6320-261

	E-mail address: jkordic@granolio.hr
	Audit firm: BDO Croatia d.o.o.
	(name of the audit firm)
Certified auditor: Hrvoje Stipić
	(name and surname)

BALANCE SHEET balance as at 30.06.2019

Submitter:Granolio d.d.			in HRK
Item	ADP code	Last day of the preceding business	At the reporting date of the current period
1	2	year 3	4
A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID	001	0	0
B) FIXED ASSETS (ADP 003+010+020+031+036) I INTANGIBLE ASSETS (ADP 004 to 009)	002 003	376.229.861 122.614.230	350.882.128 121.958.490
1 Research and development	004	0	0
2 Concessions, patents, licences, trademarks, software and other rights	005	120.250.063	120.427.323
3 Goodwill	006	0	0
4 Advances for the purchase of intangible assets	007	0	0
5 Intangible assets in preparation	008	0	0
6 Other intangible assets	009	2.364.167	1.531.167
II TANGIBLE ASSETS (ADP 011 to 019) 1 Land	010 011	151.119.937 9.155.420	148.442.944 9.155.420
2 Buildings	012	115.283.310	113.887.032
3 Plant and equipment	013	12.076.530	11.020.785
4 Tools, working inventory and transportation assets	014	576.321	277.330
5 Biological assets	015	0	0
6 Advances for the purchase of tangible assets	016	0	0
7 Tangible assets in preparation 8 Other tangible assets	017 018	9.334.080 79.276	9.384.080 103.297
9 Investment property	019	4.615.000	4.615.000
III FIXED FINANCIAL ASSETS (ADP 021 to 030)	020	102.480.694	80.480.694
1 Investments in holdings (shares) of undertakings within the group	021	92.427.762	70.427.762
2 Investments in other securities of undertakings within the group	022	0	0
3 Loans, deposits, etc. to undertakings within the group	023	0	0
4. Investments in holdings (shares) of companies linked by virtue of participating interests	024	0	0
5 Investment in other securities of companies linked by virtue of participating interests 6 Loans, deposits etc. to companies linked by virtue of participating	025	0	0
interests	026	0	0
7 Investments in securities	027	0	0
8 Loans, deposits, etc. given	028	193.062	193.062
9 Other investments accounted for using the equity method 10 Other fixed financial assets	029 030	0 9.859.870	0 9.859.870
IV RECEIVABLES (ADP 032 to 035)	031	15.000	0
1 Receivables from undertakings within the group	032	0	0
2 Receivables from companies linked by virtue of participating interests	033	0	0
3 Customer receivables	034	0	0
4 Other receivables	035	15.000	0
V DEFERRED TAX ASSETS	036	0	0
C) CURRENT ASSETS (ADP 038+046+053+063)	037	142.661.088	159.855.833
I INVENTORIES (ADP 039 to 045) 1 Raw materials and consumables	038	10.075.836	9.995.184 5.072.186
2 Work in progress	039 040	5.704.493 181.223	188.209
3 Finished goods	041	1.608.644	1.409.711
4 Merchandise	042	2.581.476	3.325.078
5 Advances for inventories	043	0	0
6 Fixed assets held for sale	044	0	0
7 Biological assets II RECEIVABLES (ADP 047 to 052)	045 046	0 92.875.534	0 113.332.721
1 Receivables from undertakings within the group	047	8.611.329	8.802.437
2 Receivables from companies linked by virtue of participating interests	048	0	0
3 Customer receivables	049	55.445.225	65.174.037
4 Receivables from employees and members of the undertaking	050	0	1.119
5 Receivables from government and other institutions	051	670.540	1.110.757
6 Other receivables	052	28.148.440	38.244.371
III CURRENT FINANCIAL ASSETS (ADP 054 to 062) 1 Investments in holdings (shares) of undertakings within the group	053 054	36.135.368 0	34.591.576 0
2 Investments in other securities of undertakings within the group	055	0	0
3 Loans, deposits, etc. to undertakings within the group	056	22.935.460	21.423.076
4 Investments in holdings (shares) of companies linked by virtue of participating interests	057	0	0
5 Investment in other securities of companies linked by virtue of participating interests	058	0	0
6 Loans, deposits etc. to companies linked by virtue of participating interests	059	0	0
7 Investments in securities	060	178.281	178.281
8 Loans, deposits, etc. given	061	13.021.627	12.990.219
9 Other financial assets IV CASH AT BANK AND IN HAND	062	0	0 1.936.352
D ) PREPAID EXPENSES AND ACCRUED INCOME	063 064	3.574.350 504.406	526.041
E) TOTAL ASSETS (ADP 001+002+037+064)	065	519.395.355	511.264.002
OFF-BALANCE SHEET ITEMS	066	9.810.363	9.212.822

LIABILITIES
A) CAPITAL AND RESERVES (ADP 068 to	067	54.480.310	42.699.250
I INITIAL (SUBSCRIBED) CAPITAL	068	19.016.430	19.016.430
II CAPITAL RESERVES	069	84.195.807	84.195.807
III RESERVES FROM PROFIT (ADP 071+072-073+074+075)	070	1.208.554	4.296.923
1 Legal reserves	071	408.554	3.496.923
2 Reserves for treasury shares	072	800.000	800.000
3 Treasury shares and holdings (deductible item)	073	0	0
4 Statutory reserves	074	0	0
5 Other reserves	075	0	0
IV REVALUATION RESERVES	076	57.678.142	56.177.018
V FAIR VALUE RESERVES (ADP 078 to 080)	077	0	0
1 Fair value of financial assets available for sale	078	0	0
2 Cash flow hedge - effective portion	079	0	0
3 Hedge of a net investment in a foreign operation - effective portion	080	0	0
VI RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 082- 083)	081	-169.386.014	-108.846.921
1 Retained profit	082	0	0
2 Loss brought forward	083	169.386.014	108.846.921
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 085-086)	084	61.767.391	-12.140.007
1 Profit for the business year	085	61.767.391	0
2 Loss for the business year	086	0	12.140.007
VIII MINORITY (NON-CONTROLLING) INTEREST	087	0	0
B) PROVISIONS (ADP 089 to 094)	088	0	0
1 Provisions for pensions, termination benefits and similar obligations	089	0	0
2 Provisions for tax liabilities	090	0	0
3 Provisions for ongoing legal cases	091	0	0
4 Provisions for renewal of natural resources	092	0	0
5 Provisions for warranty obligations	093	0	0
6 Other provisions	094	0	0
C) LONG-TERM LIABILITIES (ADP 096 to 106)	095	427.778.487	411.159.273
1 Liabilities to undertakings within the group	096	0	0
2 Liabilities for loans, deposits, etc. of undertakings within the group	097	0	0
3 Liabilities to companies linked by virtue of participating interests	098	0	0
4 Liabilities for loans, deposits etc. of companies linked by virtue of	099	0	0
participating interests
5 Liabilities for loans, deposits etc.	100	0	0
6 Liabilities to banks and other financial institutions	101	363.368.612	354.765.593
7 Liabilities for advance payments 8 Liabilities to suppliers	102	0	0 44.062.139
9 Liabilities for securities	103 104	51.748.819 0	0
10 Other long-term liabilities	105	0	0
11 Deferred tax liability	106	12.661.056	12.331.541
D) SHORT-TERM LIABILITIES (ADP 108 to 121)	107	36.845.258	57.218.783
1 Liabilities to undertakings within the group	108	27.456	27.904
2 Liabilities for loans, deposits, etc. of undertakings within the group	109	0	0
3 Liabilities to companies linked by virtue of participating interests	110	0	0
4 Liabilities for loans, deposits etc. of companies linked by virtue of	111	0	0
participating interests
5 Liabilities for loans, deposits etc.	112	0	0
6 Liabilities to banks and other financial institutions	113	451.151	1.797.089
7 Liabilities for advance payments	114	668.221	52.728
8 Liabilities to suppliers	115	24.239.849	45.644.644
9 Liabilities for securities	116	8.870.000	7.830.000
10 Liabilities to employees	117	938.475	956.425
11 Taxes, contributions and similar liabilities	118	1.645.410	738.384
12 Liabilities arising from the share in the result	119	0	0
13 Liabilities arising from fixed assets held for sale	120	0	0
14 Other short-term liabilities E) ACCRUALS AND DEFERRED INCOME	121	4.696	171.609 186.697
F) TOTAL – LIABILITIES (ADP 067+088+095+107+122)	122	291.301	511.264.003
G) OFF-BALANCE SHEET ITEMS	123 124	519.395.356 9.810.363	9.212.822

for the period 01.01.2019 to 30.06.2019 STATEMENT OF PROFIT OR LOSS

in HRK

Submitter: Granolio d.d.
Item	ADP	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)	125	125.932.715	65.021.944	130.706.959	74.825.631
1 Income from sales with undertakings within the group	126	2.148.922	1.139.061	2.948.991	1.376.816
2 Income from sales (outside group)	127	121.958.194	63.157.048	125.268.778	71.572.489
3 Income from the use of own products, goods and services	128	4.928	2.915	18.234	8.550
4 Other operating income with undertakings within the group	129	0	0	0	0
5 Other operating income (outside the group)	130	1.820.671	722.920	2.470.956	1.867.776
II OPERATING EXPENSES (ADP 132+133+137+141+142+143+146+153)	131	132.498.714	68.645.545	142.453.126	75.842.528
1 Changes in inventories of work in progress and finished goods 2 Material costs (ADP 134 to 136)	132 133	554.119 116.532.398	919.539 60.047.222	174.753 126.459.325	-1.581.554 69.615.243
a) Costs of raw materials and consumables	134	86.406.056	42.339.340	92.012.518	49.501.347
b) Costs of goods sold	135	20.541.086	12.724.226	25.715.474	15.380.269
c) Other external costs	136	9.585.256	4.983.656	8.731.333	4.733.627
3 Staff costs (ADP 138 to 140)	137	8.137.416	4.050.134	8.599.477	4.325.095
a) Net salaries and wages	138	5.127.574	2.568.358	5.446.440	2.753.836
b) Tax and contributions from salary costs	139	1.919.198	945.200	2.071.997	1.028.637
c) Contributions on salaries	140	1.090.644	536.576	1.081.040	542.622
4 Depreciation	141	5.192.525	2.576.650	5.291.999	2.642.932
5 Other costs	142	1.263.965	644.924	1.126.191	538.766
6 Value adjustments (ADP 144+145)	143	0	0	0	0
a) fixed assets other than financial assets	144	0	0	0	0
b) current assets other than financial assets	145	0	0	0	0
7 Provisions (ADP 147 to 152)	146	0	0	0	0
a) Provisions for pensions, termination benefits and similar obligations	147	0	0	0	0
b) Provisions for tax liabilities	148	0	0	0	0
c) Provisions for ongoing legal cases	149	0	0	0	0
d) Provisions for renewal of natural resources	150	0	0	0	0
e) Provisions for warranty obligations	151	0	0	0	0
f) Other provisions	152	0	0	0	0
8 Other operating expenses	153	818.291	407.076	801.381	302.046
III FINANCIAL INCOME (ADP 155 to 164)	154	1.125.425	497.294	1.028.620	900.779
1 Income from investments in holdings (shares) of undertakings within the group	155	0	0	0	0
2 Income from investments in holdings (shares) of companies linked by virtue of participating interests	156	0	0	0	0
3 Income from other long-term financial investment and loans granted to	157	295.176	144.573	235.522	235.522
undertakings within the group 4 Other interest income from operations with undertakings within the	158	0	0	0	0
group 5 Exchange rate differences and other financial income from operations
with undertakings within the group	159	0	0	0	0
6 Income from other long-term financial investments and loans	160	352.276	176.250	123.368	1.017
7 Other interest income	161	19.805	7.454	460.093	458.266
8 Exchange rate differences and other financial income	162	458.168	169.017	21.820	18.157
9 Unrealised gains (income) from financial assets	163	0	0	0	0
10 Other financial income	164	0	0	187.817	187.817
IV FINANCIAL EXPENSES (ADP 166 to 172)	165	835.653	344.513	1.422.460	718.662
1 Interest expenses and similar expenses with undertakings within the group	166	515.661	128.537	0	0
2 Exchange rate differences and other expenses from operations with undertakings within the group	167	0	0	0	0
3 Interest expenses and similar expenses	168	161.901	144.510	1.325.163	650.186
4 Exchange rate differences and other expenses	169	136.530	49.957	72.042	43.348
5 Unrealised losses (expenses) from financial assets	170	0	0	0	0
6 Value adjustments of financial assets (net)	171	0	0	0	0
7 Other financial expenses	172	21.561	21.509	25.255	25.128
V SHARE IN PROFIT FROM UNDERTAKINGS LINKED BY VRITUE OF	173	0	0	0	0
PARTICIPATING INTERESTS
VI SHARE IN PROFIT FROM JOINT VENTURES	174	0	0	0	0
VII SHARE IN LOSS OF COMPANIES LINKED BY VIRTUE OF	175	0	0	0	0
PARTICIPATING INTEREST
VIII SHARE IN LOSS OF JOINT VENTURES	176	0	0 65.519.238	0 131.735.579	0 75.726.410
IX TOTAL INCOME (ADP 125+154+173 + 174) X TOTAL EXPENDITURE (ADP 131+165+175 + 176)	177 178	127.058.140	68.990.058	143.875.586	76.561.190
XI PRE-TAX PROFIT OR LOSS (ADP 177-178)	179	133.334.367 -6.276.227	-3.470.820	-12.140.007	-834.780
1 Pre-tax profit (ADP 177-178)	180	0	0	0	0

2 Pre-tax loss (ADP 178-177)	181	-6.276.227	-3.470.820	-12.140.007	-834.780
XII INCOME TAX	182	0	0	0	0
XIII PROFIT OR LOSS FOR THE PERIOD (ADP 179-182)	183	-6.276.227	-3.470.820	-12.140.007	-834.780
1 Profit for the period (ADP 179-182)	184	0	0	0	0
2 Loss for the period (ADP 182-179)	185	-6.276.227	-3.470.820	-12.140.007	-834.780
DISCONTINUED OPERATIONS (to be filled in by undertakings subject to IFRS only with discontinued operations)
XIV PRE-TAX PROFIT OR LOSS OF DISCONTINUED OPERATIONS	186	0	0	0	0
(ADP 187-188)
1 Pre-tax profit from discontinued operations	187	0	0	0	0
2 Pre-tax loss on discontinued operations	188	0	0	0	0
XV INCOME TAX OF DISCONTINUED OPERATIONS	189	0	0	0	0
1 Discontinued operations profit for the period (ADP 186-189)	190	0	0	0	0
2 Discontinued operations loss for the period (ADP 189-186)	191	0	0	0	0
TOTAL OPERATIONS (to be filled in only by undertakings subject to IFRS with discontinued operations)			0	0	0
XVI PRE-TAX PROFIT OR LOSS (ADP 179+186)	192	0	0	0	0
1 Pre-tax profit (ADP 192) 2 Pre-tax loss (ADP 192)	193	0	0	0	0
XVII INCOME TAX (ADP 182+189)	194 195	0 0	0	0	0
XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 192-195)	196	0	0	0	0
1 Profit for the period (ADP 192-195)	197	0	0	0	0
2 Loss for the period (ADP 195-192)	198	0	0	0	0
APPENDIX to the P&L (to be filled in by undertakings that draw up consolidated annual financial statements)
XIX PROFIT OR LOSS FOR THE PERIOD (ADP 200+201)	199	0	0	0	0
1 Attributable to owners of the parent	200	0	0	0	0
				0 0 0
2 Attributable to minority (non-controlling) interest	201	0
STATEMENT OF OTHER COMPRHENSIVE INCOME (to be filled in by undertakings subject to IFRS) I PROFIT OR LOSS FOR THE PERIOD	202
II OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX		-6.276.227	-3.403.960	-12.140.007	-834.780
(ADP 204 to 211)	203	0	0	0
1 Exchange rate differences from translation of foreign operations	204	0	0	0
2 Changes in revaluation reserves of fixed tangible and intangible assets	205	0	0	0
3 Profit or loss arising from subsequent measurement of financial assets available for sale	206	0	0	0
4 Profit or loss arising from effective cash flow hedging	207	0	0	0
5 Profit or loss arising from effective hedge of a net investment in a foreign operation	208	0	0	0
6 Share in other comprehensive income/loss of companies linked by virtue of participating interests	209	0	0	0
7 Actuarial gains/losses on the defined benefit obligation	210	0	0	0
8 Other changes in equity unrelated to owners	211	0	0	0
III TAX ON OTHER COMPREHENSIVE INCOME FOR THE PERIOD	212	0	0	0
IV NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 203-212)	213	0	0	0
V COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 202+213)	214	-6.276.227	-3.403.960	-12.140.007	0 0 0 0 0 0 0 0 0 0 0 -834.780
APPENDIX to the Statement on comprehensive income (to be filled in by undertakings that draw up consolidated statements)
VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 216+217)	215	0	0	0
1 Attributable to owners of the parent	216	0	0	0	0 0

STATEMENT OF CASH FLOWS - indirect method for the period 01.01.2019 to 30.06.2019

Submitter: Granolio d.d.
Item	ADP	Same period of the previous year	Current period
1	code 2	3	4
Cash flow from operating activities
1 Pre-tax profit	001	-6.276.227	-12.140.007
2 Adjustments (ADP 003 to 010):	002	5.052.681	4.192.993
a) Depreciation b) Gains and losses from sale and value adjustment of fixed tangible and	003	5.192.525	5.292.000
intangible assets	004	8.874	0
c) Gains and losses from sale and unrealised gains and losses and value			-188.089
adjustment of financial assets	005	0
d) Interest and dividend income	006	-667.257	-818.983
e) Interest expenses	007	677.562	1.325.163
f) Provisions g) Exchange rate differences (unrealised)	008 009	0 -330.695	0 -173
h) Other adjustments for non-cash transactions and unrealised gains and
losses	010	171.672	-1.416.925
I Cash flow increase or decrease before changes in working capital
(ADP 001+002)	011	-1.223.546	-7.947.014
3 Changes in the working capital (ADP 013 to 016)	012	5.198.343	8.038.173
a) Increase or decrease in short-term liabilities	013	4.298.393	12.293.921
b) Increase or decrease in short-term receivables	014	-7.011.680	-5.768.325
c) Increase or decrease in inventories	015	7.911.630	1.512.577
d) Other increase or decrease in working capital	016	0	0
II Cash from operations (ADP 011+012) 4 Interest paid	017	3.974.797	91.159
5 Income tax paid	018 019	-161.901 -447.638	-1.154.693 0
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019)	020	3.365.258	-1.063.534
Cash flow from investment activities
1 Cash receipts from sales of fixed tangible and intangible assets	021	0	0
2 Cash receipts from sales of financial instruments	022	0	0
3 Interest received	023	179.298	848.484
4 Dividends received	024	0	0
5 Cash receipts from repayment of loans and deposits	025	780.951	4.632.408
6 Other cash receipts from investment activities	026	10.215	7.260.000
III Total cash receipts from investment activities (ADP 021 to 026)	027	970.464	12.740.892
1 Cash payments for the purchase of fixed tangible and intangible assets	028	-1.137.843	-1.610.442
2 Cash payments for the acquisition of financial instruments	029	0	0
3 Cash payments for loans and deposits for the period	030	0	-3.088.616
4 Acquisition of a subsidiary, net of cash acquired	031	0	0
5 Other cash payments from investment activities	032	0	0
IV Total cash payments from investment activities (ADP 028 to 032)	033	-1.137.843	-4.699.058
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033)	034	-167.379	8.041.834
Cash flow from financing activities
1 Cash receipts from the increase in initial (subscribed) capital	035	0	0
2 Cash receipts from the issue of equity financial instruments and debt	036	0	0
financial instruments
3 Cash receipts from credit principals, loans and other borrowings 4 Other cash receipts from financing activities	037 038	780.000 0	0 0
V Total cash receipts from financing activities (ADP 035 to 038)	039	780.000	0
1 Cash payments for the repayment of credit principals, loans and other	040	-979.222	-7.260.000
borrowings and debt financial instruments
2 Cash payments for dividends 3 Cash payments for finance lease	041	0	0
4 Cash payments for the redemption of treasury shares and decrease in	042	0	-316.298
initial (subscribed) capital	043	0	0
5 Other cash payments from financing activities	044	-520.000	-1.040.000
VI Total cash payments from financing activities (ADP 040 to 044)	045	-1.499.222	-8.616.298
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045)	046	-719.222	-8.616.298
1 Unrealised exchange rate differences in respect of cash and cash	047	0	0
equivalents D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP	048	2.478.657	-1.637.998
020+034+046+047) E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE	049	2.800.724	3.574.350
PERIOD F) CASH AND CASH EQUIVALENTS AT THE END OF THE
PERIOD(ADP 048+049)	050	5.279.381	1.936.352

in HRK

STATEMENT OF CHANGES IN EQUITY

for the period from 1.1.2019	to 30.6.2019														in HRK
Item	ADP code	Initial (subscribed) capital	Capital reserves	Legal reserves	Reserves for treasury shares	Treasury shares and holdings		Attributable to owners of the parent Statutory reserves Other reserves	Revaluation reserves	Fair value of Cash flow hedge - financial assets effective portion	Hedge of a net investment in a foreign operation -	Retained profit / loss brought	Profit/loss for the business year	Total attributable to owners of the parent	Minority (non controlling) interest	Total capital and reserves
1	2	3	4	5	6	(deductible item) 7	8	9	10	available for sale 11 12	effective portion 13	forward 14	15	16 (3 to 6 - 7 + 8 to 15)	17	18 (16+17)
Previous period
1 Balance on the first day of the previous business year 2 Changes in accounting policies	01 02	19.016.430 0	84.186.547 0	408.554 0	800.000 0		0 0	0 0 0 0	60.117.173 0	0 0	0 0	0 9.803.142 0	-198.186.628 0 0	-23.854.782 0	0 0	-23.854.782 0
3 Correction of errors	03	0	0	0	0		0	0 0	0	0	0	0	0 0	0	0	0
4 Balance on the first day of the previous business year (restated) (ADP 01 to 03)	04	19.016.430	84.186.547	408.554	800.000		0	0 0	60.117.173	0	0	0 9.803.142	-198.186.628	-23.854.782	0	-23.854.782
5 Profit/loss of the period	05	0	0	0	0		0	0 0	0	0	0	0	0 61.767.391	61.767.391	0	61.767.391
6 Exchange rate differences from translation of foreign operations 7 Changes in revaluation reserves of fixed tangible and intangible assets	06 07	0 0	0 0	0 0	0 0		0 0	0 0 0 0	0 -2.996.109	0 0	0 0	0 0 2.996.109	0 0 0	0 0	0 0	0 0
8 Profit or loss arising from subsequent measurement of financial assets available for
sale	08	0	0	0	0		0	0 0	0	0	0	0	0 0	0	0	0
9 Profit or loss arising from effective cash flow hedge 10 Profit or loss arising from effective hedge of a net investment in a foreign operation	09 10	0 0	0 0	0 0	0 0		0 0	0 0 0 0	0 0	0 0	0 0	0 0	0 0 0 0	0 0	0 0	0 0
11 Share in other comprehensive income/loss of companies linked by virtue of
participating interests	11	0	0	0	0		0	0 0	0	0	0	0	0 0	0	0	0
12 Actuarial gains/losses on the defined benefit obligation 13 Other changes in equity unrelated to owners	12 13	0	0 9.260	0 0	0 0		0 0	0 0 0 0	0 679.363	0 0	0 0	0 0 15.343.681	0 0 0	0	0	0
14 Tax on transactions recognised directly in equity	14	0 0	0	0	0		0	0 0	-122.285	0	0	0 657.682	0	16.032.304 535.397	0 0	16.032.304 535.397
15 Increase/decrease in initial (subscribed) capital (other than from reinvesting profit	15	0	0	0	0		0	0 0	0	0	0	0	0 0	0	0	0
and other than arising from the pre-bankruptcy settlement procedure)
16 Increase in initial (subscribed) capital arising from the reinvestment of profit	16	0	0	0	0		0	0 0	0	0	0	0	0 0	0	0	0
17 Increase in initial (subscribed) capital arising from the pre-bankruptcy settlement procedure	17	0	0	0	0		0	0 0	0	0	0	0	0 0	0	0	0
18 Redemption of treasury shares/holdings	18	0	0	0	0		0	0 0	0	0	0	0	0 0	0	0	0
19 Payment of share in profit/dividend 20 Other distribution to owners	19 20	0 0	0 0	0 0	0 0		0 0	0 0 0 0	0 0	0 0	0 0	0 0	0 0 0 0	0 0	0 0	0 0
21 Transfer to reserves according to the annual schedule	21	0	0	0	0		0	0 0	0	0	0	0 -198.186.628	198.186.628	0	0	0
22 Increase in reserves arising from the pre-bankruptcy settlement procedure	22	0	0	0	0		0	0 0	0	0	0	0	0 0	0	0	0
23 Balance on the last day of the previous business year reporting period (04 to 22)	23	19.016.430	84.195.807	408.554	800.000		0	0 0	57.678.142	0	0	0 -169.386.014	61.767.391	54.480.310	0	54.480.310
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the IFRS)
I OTHER COMPREHENSIVE INCOME OF THE PREVIOUS PERIOD, NET OF TAX (ADP 06 to 14)	24	0	9.260	0	0		0	0 0	-2.439.031	0	0	0 18.997.472	0	16.567.701	0	16.567.701
II COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD (ADP 05+24)	25	0	9.260	0	0		0	0 0	-2.439.031	0	0	0 18.997.472	61.767.391	78.335.092	0	78.335.092
III TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD RECOGNISED DIRECTLY IN EQUITY (ADP 15 to 22)	26	0	0	0	0		0	0 0	0	0	0	0 -198.186.628	198.186.628	0	0	0
Current period
1 Balance on the first day of the current business year	27	19.016.430	84.195.807	408.554	800.000		0	0 0	57.678.142	0	0	0 -169.386.014	61.767.391	54.480.310	0	54.480.310
2 Changes in accounting policies 3 Correction of errors	28 29	0 0	0 0	0 0	0 0		0 0	0 0 0 0	0 0	0 0	0 0	0 0	0 0 0 0	0 0	0 0	0 0
4 Balance on the first day of the current business year (restated) (ADP 27 to 29)	30	19.016.430	84.195.807	408.554	800.000		0	0 0	57.678.142	0	0	0 -169.386.014	61.767.391	54.480.310	0	54.480.310
5 Profit/loss of the period	31	0	0	0	0		0	0 0	0	0	0	0	0 -12.140.007	-12.140.007	0	-12.140.007
6 Exchange rate differences from translation of foreign operations	32	0	0	0	0		0	0 0	0	0	0	0	0 0	0	0	0
7 Changes in revaluation reserves of fixed tangible and intangible assets	33	0	0	0	0		0	0 0	-1.501.123	0	0	0 1.501.123	0	0	0	0
8 Profit or loss arising from subsequent measurement of financial assets available for sale	34	0	0	0	0		0	0 0	0	0	0	0	0 0	0	0	0
9 Profit or loss arising from effective cash flow hedge	35	0	0	0	0		0	0 0	0	0	0	0	0 0	0	0	0
10 Profit or loss arising from effective hedge of a net investment in a foreign operation	36	0	0	0	0		0	0 0	0	0	0	0	0 0	0	0	0
11 Share in other comprehensive income/loss of companies linked by virtue of participating interests	37	0	0	0	0		0	0 0	0	0	0	0	0 0	0	0	0
12 Actuarial gains/losses on the defined benefit obligation	38	0	0	0	0		0	0 0	0	0	0	0	0 0	0	0	0
13 Other changes in equity unrelated to owners	39	0	0	0	0		0	0 0	0	0	0	0 29.433	0	29.433	0	29.433
14 Tax on transactions recognised directly in equity 15 Increase/decrease in initial (subscribed) capital (other than from reinvesting profit	40	0	0 0	0 0	0 0		0 0	0 0 0 0	0 0	0 0	0 0	0 329.515 0	0 0 0	329.515	0	329.515
and other than arising from the pre-bankruptcy settlement procedure)	41	0												0	0	0
16 Increase in initial (subscribed) capital arising from the reinvestment of profit 17 Increase in initial (subscribed) capital arising from the pre-bankruptcy settlement	42	0	0	0	0		0	0 0	0	0	0	0	0 0	0	0	0
procedure 18 Redemption of treasury shares/holdings	43 44	0 0	0 0	0 0	0 0		0 0	0 0 0 0	0 0	0 0	0 0	0 0	0 0 0 0	0 0	0 0	0 0
19 Payment of share in profit/dividend	45	0	0	0	0		0	0 0	0	0	0	0	0 0	0	0	0
20 Other distribution to owners	46	0	0	0	0		0	0 0	0	0	0	0	0 0	0	0	0
21 Transfer to reserves according to the annual schedule	47	0	0	3.088.369	0		0	0 0	0	0	0	0 58.679.022	-61.767.391	0	0	0
22 Increase in reserves arising from the pre-bankruptcy settlement procedure 23 Balance on the last day of the current business year reporting period (ADP	48	0	0	0	0		0	0 0	0	0	0	0	0 0	0	0	0
30 to 48)	49	19.016.430	84.195.807	3.496.923	800.000		0	0 0	56.177.019	0	0	0 -108.846.921	-12.140.007	42.699.251	0	42.699.251
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
TAX	50	0	0	0	0		0	0 0	-1.501.123	0	0	0 1.860.071	0	358.948	0	358.948
(ADP 32 to 40) II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP	51		0	0	0		0	0 0	-1.501.123	0	0	0 1.860.071	-12.140.007	-11.781.059	0	-11.781.059
31+50) III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED		0
DIRECTLY IN EQUITY (ADP 41 to 48)	52	0	0	3.088.369	0		0	0 0	0	0	0	0 58.679.022	-61.767.391	0	0	0

NOTES TO FINANCIAL STATEMENTS - TFI (drawn up for quarterly reporting periods)

Name of the issuer: Granolio d.d. Personal identification number (OIB): 59064993527

Reporting period: 01.01.2019.- 30.06.2019.

Notes to financial statements for quarterly periods include:

The same accounting policies are applied while drawing up financial statements for the six month reporting period as in the latest annual financial statements except for IFRS 16 that applies to the financial statements starting on January 1, 2019.

The effect of applying IFRS 16 on lease contracts concluded prior to January 1, 2019 is reported in the position Loss brought forward.

On March 4, 2019, a contract was signed for the sale of the shares of the associated company Žitar d.o.o,and that transaction was registered in Court register on 14 April 2019. The share of the company Žitar d.o.o.was reduced to net realizable value during 2018, by selling in 2019, the Company did not disclose any result from the sale of shares in the statement of comprehensive income.