Granolio d.d.

Interim / Quarterly Report • Aug 31, 2020

Consolidated financial results for the six months period ended 30 June 2020 (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.

Subsidiaries

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

It has a controlling influence in the decision-making process in Zdenkamliječniproizvodi 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., Zagrebačkepekarne Klara d.o.o. and Prehranatrgovinad.d. companies.

Ownership in subsidiaries is presented in the organizational chart below:

The Group monitors its business operations through four business segments:

• Milling
• Dairy and cheese production
• Wholesale trade
• Other

Milling is the segment that comprises flour production and sale of flour. This business segment is comprised in the holding company exclusively.

Dairy and cheese production ("Dairy") comprises cheese production and cheese sale realized in the company Zdenka – mliječni proizvodi d.o.o., but also milk production and sale of milk by dairy farm in Zdenačka farma d.o.o.

Wholesale trade segment comprises grain and oilseed trade and trade of sowing materials performed by holding company Granolio d.d.

The segment Other comprises beef cattle farming and rendering the silo services and the storage of trade goods (Granolio d.d.)

Granolio Group's financial indicators for the six months period of 2020

	1-6 2020	1-6 2019	change
Operating income	222.642	218.414	4.228	2%
Operating expenses	(224.484)	(228.697)	4.213	2%
EBIT	(1.842)	(10.283)	8.441	(82%)
EBIT margin	-1%	(5%)
EBITDA	9.991	3.620	6.371	176%
EBITDA margin	4%	2%
Net financial result	(1.844)	(1.482)	(362)	(24%)
Net result for the period	(3.686)	(11.765)	8.079	69%
Attributable to the Group	(5.009)	(12.049)	7.040	58%
Non-controlling interest	1.323	284	1.039	(366%)

In thousands of HRK

The Group's EBITDA in the first quarter of 2020 amounted to HRK 9.9 million and represents a significant increase compared to the comparable period. The increase is mostly the result of a better result in the parent company.

The net financial result represents the difference between financial income and financial expenses.

In thousands of HRK Financial indicators
	30.6.2020	31.12.2019	change
Net assets (Capital and reserves)*	43.051	46.407	(3.356)	(7%)
Total debt	357.121	359.575	(2.454)	(1%)
Cash and cash equivalents	6.281	3.298	2.983	90%
Given loans, deposits and similar**	26.213	27.237	(1.024)	(4%)
Net debt	324.627	329.040	(4.413)	(1%)
Net debt/ EBITDA	12,58	16,94
EBITDA for the last 12 months	25.800	19.429

* Net assets = capital and reserves attributable to the equity holders of the parent and to the minority interests

** Loans given, securities and deposits

The net assets of the Granolio Group are smaller compared to December 31, 2019. year due to the negative result achieved in the first half of 2020.

The total debt of the Group was reduced as a result of debt repayment of the companies Zdenka – mliječni proizvodi and Granolio.

Separate business results for the six months period of 2020

Granolio d.d.				In thousands of HRK
	1-6 2020	1-6 2019	change
Operating income	131.003	130.707	296	0%
EBIT	(6.134)	(11.746)	5.612	48%
margin %	(5%)	(9%)
EBITDA	(1.837)	(6.454)	4.617	(72%)
margin %	(1%)	(5%)
Net financial result	(908)	(394)	(514)	(130%)
Net result	(7.042)	(12.140)	5.098	42%
margin %	(5,4%)	(9,3%)

In the first half of 2020, a more favorable operating result was achieved compared to the same period last year.

The net financial result represents the difference between financial income and financial expenses. Financial expenses consist mostly of interest on financial debts that are calculated in accordance with the pre-bankruptcy settlement.

Zdenka - mliječni proizvodi d.o.o.				In thousands of HRK
	1-6 2020	1-6 2019	change
Operating income	82.095	72.934	9.161	13%
EBIT	3.109	1.726	1.383	(80%)
margin %	4%	2%
EBITDA	9.127	8.012	1.115	14%
margin %	11%	11%
Net financial result	(462)	(358)	(104)	(29%)
Net result	2.647	1.368	1.279	(93%)
margin %	3%	2%

In the first half of 2020, the Company generated revenues higher by 13% compared to the same period last year. The reason for this is better cheese sales in the first months of the year.

The unfavorable financial result was due to the significantly higher cost of negative exchange rate differences.

Zdenačka farma d.o.o. In thousands of HRK

			change
	1-6 2020	1-6 2019
Operating income	11.929	12.534	(605)	(5%)
EBIT	1.183	159	1.024	644%
margin %	10%	1%
EBITDA	2.702	1.666	1.036	62%
margin %	23%	13%
Net financial result	(474)	(356)	(118)	(33%)
Net result	709	(197)	906	(460%)
margin %	6%	(2%)

In the first half of 2020, the total milk delivery of the company Zdenačka farma amounted to 2 million kg (Q2 2019: 2 million kg). The average selling price realized in the first half of 2020 is 9% higher than the average selling price realized in the comparable period. The decrease in total operating revenues is the result of lower sales of merchandise than in the comparable period.

Employees

In the six months 2020 the Group employed 392 employees based on man-hour basis (in the six months 2019: 382 employees).

Environment

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

Other

Supervisory Board has approved Granolio Group's financial statements for the six months period 2020.

1. 2.

2. 4.

Annex 1		ISSUER'S GENERAL DATA
Reporting period:		1.1.2020	to	30.06.2020.
Year:		2020
Quarter:		2.
		Quarterly financial statements
Registration number (MB):	01244272		Issuer's home Member State code:	Croatia
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	405
Consolidated report:	KD	(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:
	GRANOLIO D.D.				ZAGREB	1244272
	ZDENAČKA FARMA D.O.O.				VELIKI ZDENCI	2095777
ZDENKA - MLIJEČNI PROIZVODI D.O.O.					VELIKI ZDENCI	1623982
Bookkeeping firm:	No	(Yes/No)				Yes No
				(name of the bookkeeping firm)
Contact person: Mirjana Kelava

(only name and surname of the contact person)
Telephone: 01/6320-233
E-mail address: mkelava@granolio.hr
Audit firm: BDO Croatia d.o.o.
(name of the audit firm)
Certified auditor: Vedrana Stipić
(name and surname)

BALANCE SHEET

balance as at 30.06.2020.

Submitter: Granolio d.d.			in HRK
Item	ADP code	Last day of the preceding business year	At the reporting date of the current period
1	2	3	4
A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID	001	0	0
B) FIXED ASSETS (ADP 003+010+020+031+036)	002	350.595.810	343.582.094
I INTANGIBLE ASSETS (ADP 004 to 009)	003	127.290.194	124.253.744
1 Research and development 2 Concessions, patents, licences, trademarks, software and other	004	0	0
rights	005	126.592.028	124.253.744
3 Goodwill	006	0	0
4 Advances for the purchase of intangible assets 5 Intangible assets in preparation	007	0	0
6 Other intangible assets	008 009	0 698.166	0 0
II TANGIBLE ASSETS (ADP 011 to 019)	010	220.950.334	216.973.068
1 Land	011	13.824.219	13.824.219
2 Buildings 3 Plant and equipment	012 013	152.690.506 30.262.269	149.115.488 29.428.848
4 Tools, working inventory and transportation assets	014	1.080.047	619.796
5 Biological assets	015	6.237.106	6.528.753
6 Advances for the purchase of tangible assets	016	0	0
7 Tangible assets in preparation 8 Other tangible assets	017 018	11.715.891 93.296	12.326.840 82.124
9 Investment property	019	5.047.000	5.047.000
III FIXED FINANCIAL ASSETS (ADP 021 to 030)	020	1.252.282	1.252.282
1 Investments in holdings (shares) of undertakings within the group	021	0	0
2 Investments in other securities of undertakings within the group 3 Loans, deposits, etc. to undertakings within the group	022 023	0 0	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	025	0	0
6 Loans, deposits etc. to companies linked by virtue of participating interests	026	0	0
7 Investments in securities	027	0	0
8 Loans, deposits, etc. given 9 Other investments accounted for using the equity method	028 029	221.945 0	221.945 0
10 Other fixed financial assets	030	1.030.337	1.030.337
IV RECEIVABLES (ADP 032 to 035)	031	0	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 V DEFERRED TAX ASSETS	035 036	0 1.103.000	0 1.103.000
C) CURRENT ASSETS (ADP 038+046+053+063)	037	184.625.158	186.449.783
I INVENTORIES (ADP 039 to 045)	038	46.337.925	43.531.536
1 Raw materials and consumables	039	21.625.009	26.897.067
2 Work in progress 3 Finished goods	040 041	2.097.780 9.183.611	3.422.698 9.007.203
4 Merchandise	042	13.431.525	4.204.568
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	0 107.974.086	0 110.646.099
1 Receivables from undertakings within the group	047	779.960	779.960
2 Receivables from companies linked by virtue of participating	048	0	0
interests 3 Customer receivables
4 Receivables from employees and members of the undertaking	049 050	78.919.646 42	83.964.780 3.384
5 Receivables from government and other institutions	051	3.735.643	1.548.489
6 Other receivables	052	24.538.795	24.349.486
III CURRENT FINANCIAL ASSETS (ADP 054 to 062)	053	27.014.667	25.991.120
1 Investments in holdings (shares) of undertakings within the group 2 Investments in other securities of undertakings within the group	054 055	0 0	0 0
3 Loans, deposits, etc. to undertakings within the group	056	10.190.819	10.190.819
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	149.624	149.623
8 Loans, deposits, etc. given	061	16.674.224	15.650.678
9 Other financial assets IV CASH AT BANK AND IN HAND	062 063	0 3.298.480	0 6.281.027
D ) PREPAID EXPENSES AND ACCRUED INCOME	064	398.663	476.517
E) TOTAL ASSETS (ADP 001+002+037+064)	065	535.619.631	530.508.394
OFF-BALANCE SHEET ITEMS	066	0	0

LIABILITIES
A) CAPITAL AND RESERVES (ADP 068 to 070+076+077+081+084+087)	067	46.406.543	43.050.539
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	4.296.597	4.296.923
1 Legal reserves	071	3.496.597	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	54.675.895	53.174.771
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	-127.770.308	-141.175.261
1 Retained profit	082	0
2 Loss brought forward	083	127.770.308	141.175.261
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 085-086)	084	-15.301.329	-5.009.366
1 Profit for the business year	085	0	0
2 Loss for the business year	086	15.301.329	5.009.366
VIII MINORITY (NON-CONTROLLING) INTEREST	087	27.293.451	28.551.234
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	383.700.218	366.075.419
1 Liabilities to undertakings within the group	096	10.000.000	10.000.000
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	159.566.584	156.450.135
6 Liabilities to banks and other financial institutions	101	134.006.037	127.820.302
7 Liabilities for advance payments	102	0	0
8 Liabilities to suppliers	103	38.246.489	31.701.498
9 Liabilities for securities	104	29.879.082	28.430.973
10 Other long-term liabilities	105	0	0
11 Deferred tax liability	106	12.002.026	11.672.511
D) SHORT-TERM LIABILITIES (ADP 108 to 121)	107	101.845.414	116.779.841
1 Liabilities to undertakings within the group	108	0	0
2 Liabilities for loans, deposits, etc. of undertakings within the group 3 Liabilities to companies linked by virtue of participating interests	109 110	0 0	0 0
4 Liabilities for loans, deposits etc. of companies linked by virtue of
participating interests	111	0	0
5 Liabilities for loans, deposits etc.	112	6.494.159	9.610.607
6 Liabilities to banks and other financial institutions	113	9.962.444	15.946.225
7 Liabilities for advance payments	114	4.403.875	1.674.066
8 Liabilities to suppliers	115	66.640.953	72.883.784
9 Liabilities for securities	116	9.666.218	8.863.139
10 Liabilities to employees	117	2.209.571	2.466.739
11 Taxes, contributions and similar liabilities	118	2.246.635	5.220.148
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	121	221.559	115.133
E) ACCRUALS AND DEFERRED INCOME	122	3.667.456	4.602.595

F) TOTAL – LIABILITIES (ADP 067+088+095+107+122)	123	535.619.631	530.508.394
G) OFF-BALANCE SHEET ITEMS	124	0	0

in HRK

for the period 01.01.2020 to 30.06.2020

STATEMENT OF PROFIT OR LOSS

Submitter: Granolio d.d.
Item	ADP code	Same period of the previous year		Current period
		Cumulative	Quarter	Cumulative	Quarter
1	2	3	4	5	6
I OPERATING INCOME (ADP 126 to 130) 1 Income from sales with undertakings within the group	125 126	218.414.257 0	119.919.487 0	222.641.936 0	106.717.699 0
2 Income from sales (outside group)	127	209.849.732	114.946.682	214.525.875	101.496.916
3 Income from the use of own products, goods and services	128	872.473	184.428	344.871	192.050
4 Other operating income with undertakings within the group	129	0	0	0	0
5 Other operating income (outside the group)	130	7.692.052	4.788.377	7.771.190	5.028.733
II OPERATING EXPENSES (ADP 132+133+137+141+142+143+146+153)	131	228.697.297	123.036.631	224.483.823	105.561.088
1 Changes in inventories of work in progress and finished goods	132	-3.010.269	2.858.291	-1.228.322	-2.237.985
2 Material costs (ADP 134 to 136)	133	193.578.292	102.049.582	190.008.447	89.993.331
a) Costs of raw materials and consumables	134	148.974.956	76.890.325	147.675.618	66.980.815
b) Costs of goods sold	135	30.771.891	18.057.029	28.384.108	16.213.470
c) Other external costs	136	13.831.445	7.102.228	13.948.721	6.799.046
3 Staff costs (ADP 138 to 140) a) Net salaries and wages	137	18.385.714	8.878.679	18.843.364	9.446.426
b) Tax and contributions from salary costs	138 139	11.897.680 4.049.643	5.750.700 1.957.365	12.359.090 4.084.908	6.210.348 2.036.720
c) Contributions on salaries	140	2.438.391	1.170.614	2.399.366	1.199.358
4 Depreciation	141	13.885.597	6.543.986	11.833.386	5.691.099
5 Other costs	142	3.198.134	1.670.237	3.052.636	1.598.630
6 Value adjustments (ADP 144+145)	143	17.767	0	0	0
a) fixed assets other than financial assets	144	0	0	0	0
b) current assets other than financial assets	145	17.767	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 d) Provisions for renewal of natural resources	149	0	0	0	0
e) Provisions for warranty obligations	150 151	0 0	0 0	0 0	0 0
f) Other provisions	152	0	0	0	0
8 Other operating expenses	153	2.642.062	1.035.856	1.974.312	1.069.587
III FINANCIAL INCOME (ADP 155 to 164)	154	990.219	963.198	687.969	477.906
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	0	0	0	0
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	67.641	67.641	61.257	61.257
7 Other interest income	161	588.377	585.519	158.635	147.086
8 Exchange rate differences and other financial income 9 Unrealised gains (income) from financial assets	162	146.384	122.221	468.077	269.563
10 Other financial income	163 164	0 187.817	0 187.817	0 0	0 0
IV FINANCIAL EXPENSES (ADP 166 to 172)	165	2.472.296	1.128.076	2.531.597	1.198.789
1 Interest expenses and similar expenses with undertakings within the	166	0	0	349.813	175.698
group 2 Exchange rate differences and other expenses from operations with	167	0	0	0	0
undertakings within the group
3 Interest expenses and similar expenses 4 Exchange rate differences and other expenses	168	2.247.701	998.394	1.306.235	538.872
5 Unrealised losses (expenses) from financial assets	169 170	199.340 0	104.554 0	835.329 0	484.159 0
6 Value adjustments of financial assets (net)	171	0	0	0	0
7 Other financial expenses	172	25.255	25.128	40.220	60
V SHARE IN PROFIT FROM UNDERTAKINGS LINKED BY VRITUE OF
PARTICIPATING INTERESTS	173	0	0	0	0
VI SHARE IN PROFIT FROM JOINT VENTURES	174	0	0	0	0
VII SHARE IN LOSS OF COMPANIES LINKED BY VIRTUE OF PARTICIPATING INTEREST	175	0	0	0	0
VIII SHARE IN LOSS OF JOINT VENTURES	176	0	0	0	0
IX TOTAL INCOME (ADP 125+154+173 + 174)	177	219.404.476	120.882.685	223.329.905	107.195.605
X TOTAL EXPENDITURE (ADP 131+165+175 + 176)	178	231.169.593	124.164.707	227.015.420	106.759.877
XI PRE-TAX PROFIT OR LOSS (ADP 177-178)	179	-11.765.117	-3.282.022	-3.685.515	435.728
1 Pre-tax profit (ADP 177-178) 2 Pre-tax loss (ADP 178-177)	180 181	0 -11.765.117	0 -3.282.022	0 -3.685.515	435.728 0
XII INCOME TAX	182	0	0	0	0
XIII PROFIT OR LOSS FOR THE PERIOD (ADP 179-182)	183	-11.765.117	-3.282.022	-3.685.515	435.728
1 Profit for the period (ADP 179-182)	184	0	0	0	435.728
2 Loss for the period (ADP 182-179)	185	-11.765.117	-3.282.022	-3.685.515	0

DISCONTINUED OPERATIONS (to be filled in by undertakings subject to IFRS only with discontinued operations)
XIV PRE-TAX PROFIT OR LOSS OF DISCONTINUED OPERATIONS
(ADP 187-188)	186	0	0	0	0
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
2 Discontinued operations loss for the period (ADP 189-186)	191
TOTAL OPERATIONS (to be filled in only by undertakings subject to IFRS with discontinued operations)
XVI PRE-TAX PROFIT OR LOSS (ADP 179+186)	192	0	0	0	0
1 Pre-tax profit (ADP 192)	193	0	0	0	0
2 Pre-tax loss (ADP 192)	194	0	0	0	0
XVII INCOME TAX (ADP 182+189)	195	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	-11.765.117	-3.282.022	-3.685.515	435.728
1 Attributable to owners of the parent	200	-12.048.604	-3.370.652	-5.009.366	-799.118
2 Attributable to minority (non-controlling) interest	201	283.487	88.630	1.323.851	1.234.846
STATEMENT OF OTHER COMPRHENSIVE INCOME (to be filled in by undertakings subject to IFRS)
I PROFIT OR LOSS FOR THE PERIOD	202	-11.765.117	-3.282.022	-3.685.515	435.728
II OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX (ADP 204 to 211)	203	0	0	0	0
1 Exchange rate differences from translation of foreign operations	204	0	0	0	0
2 Changes in revaluation reserves of fixed tangible and intangible assets	205	0	0	0	0
3 Profit or loss arising from subsequent measurement of financial assets available for sale	206	0	0	0	0
4 Profit or loss arising from effective cash flow hedging	207	0	0	0	0
5 Profit or loss arising from effective hedge of a net investment in a foreign operation	208	0	0	0	0
6 Share in other comprehensive income/loss of companies linked by virtue of participating interests	209	0	0	0	0
7 Actuarial gains/losses on the defined benefit obligation	210	0	0	0	0
8 Other changes in equity unrelated to owners	211	0	0	0	0
III TAX ON OTHER COMPREHENSIVE INCOME FOR THE PERIOD	212	0	0	0	0
IV NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 203-212)	213	0	0	0	0
V COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 202+213)	214	-11.765.117	-3.282.022	-3.685.515	435.728
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	-11.765.117	-3.282.022	-3.685.515	435.728
1 Attributable to owners of the parent	216	-12.048.604	-3.370.652	-5.009.366	-799.118
2 Attributable to minority (non-controlling) interest	217	283.487	88.630	1.323.851	1.234.846

STATEMENT OF CASH FLOWS - indirect method

for the period 01.01.2020. to 30.06.2020.

Submitter: Granolio d.d. Item	ADP	Same period of the	Current period
1	code 2	previous year 3	4
Cash flow from operating activities
1 Pre-tax profit	001	-8.452.601	-3.685.516
2 Adjustments (ADP 003 to 010):	002	7.484.284	11.480.757
a) Depreciation b) Gains and losses from sale and value adjustment of fixed tangible and	003	7.341.610	11.833.387
intangible assets	004	957.697	956.219
c) Gains and losses from sale and unrealised gains and losses and value	005	0	0
adjustment of financial assets
d) Interest and dividend income e) Interest expenses	006	-126.573	-158.635
f) Provisions	007 008	1.371.657 0	1.123.774 0
g) Exchange rate differences (unrealised)	009		0
h) Other adjustments for non-cash transactions and unrealised gains and	010	-2.060.107	-2.273.988
losses
I Cash flow increase or decrease before changes in working capital (ADP 001+002)	011	-968.316	7.795.242
3 Changes in the working capital (ADP 013 to 016)	012	1.040.864	2.327.646
a) Increase or decrease in short-term liabilities	013	1.785.662	1.898.405
b) Increase or decrease in short-term receivables	014	12.106.647	-2.598.729
c) Increase or decrease in inventories	015	-12.851.445	3.027.970
d) Other increase or decrease in working capital	016	0	0
II Cash from operations (ADP 011+012)	017	72.548	10.122.888
4 Interest paid	018	-1.214.007	-1.215.124
5 Income tax paid	019	0	0
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019)	020	-1.141.459	8.907.764
Cash flow from investment activities
1 Cash receipts from sales of fixed tangible and intangible assets	021	176.784	0
2 Cash receipts from sales of financial instruments	022	0	0
3 Interest received	023	456.096	157.096
4 Dividends received	024	0	0
5 Cash receipts from repayment of loans and deposits	025	2.989.765	23.725
6 Other cash receipts from investment activities	026	0	1.000.000
III Total cash receipts from investment activities (ADP 021 to 026)	027	3.622.645	1.180.821
1 Cash payments for the purchase of fixed tangible and intangible assets	028	-2.458.785	-4.342.332
2 Cash payments for the acquisition of financial instruments	029	0	0
3 Cash payments for loans and deposits for the period	030	-145.000	0
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	-2.603.785	-4.342.332
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033)	034	1.018.859	-3.161.511
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 financial instruments	036	0	0
3 Cash receipts from credit principals, loans and other borrowings	037	3.000.000	5.250.633
4 Other cash receipts from financing activities	038	0	0
V Total cash receipts from financing activities (ADP 035 to 038)	039	3.000.000	5.250.633
1 Cash payments for the repayment of credit principals, loans and other	040	-6.367.742	-5.423.626
borrowings and debt financial instruments
2 Cash payments for dividends 3 Cash payments for finance lease	041 042	0 -310.019	0 -339.524
4 Cash payments for the redemption of treasury shares and decrease in
initial (subscribed) capital	043	0	0
5 Other cash payments from financing activities	044	-490.000	-2.251.188
VI Total cash payments from financing activities (ADP 040 to 044)	045	-7.167.761	-8.014.338
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045)	046	-4.167.761	-2.763.705
1 Unrealised exchange rate differences in respect of cash and cash equivalents	047	0	0
D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP 020+034+046+047)	048	-4.290.360	2.982.548
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	049	10.339.675	3.298.480
F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD(ADP 048+049)	050	6.049.315	6.281.028

STATEMENT OF CHANGES IN EQUITY

for the period from 1.1.2020 to	30.6.2020														in HRK
							Attributable to owners of the parent
Item	ADP code	Initial (subscribed) capital	Capital reserves	Legal reserves	Reserves for treasury shares	Treasury shares and holdings (deductible Statutory reserves Other reserves item)		Revaluation reserves	Fair value of financial assets available for sale	Cash flow hedge - effective portion	Hedge of a net investment in a foreign operation - effective portion	Retained profit / loss brought forward	Profit/loss for the business year	Total attributable to owners of the parent	Minority (non controlling) interest	Total capital and reserves
1	2	3	4	5	6	7 8	9	10	11	12	13	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	01	19.016.430	84.195.807	408.227	800.000	0 0	0	57.678.142	0	0	0	-199.590.748	81.861.224	44.369.082	60.437.203	104.806.285
2 Changes in accounting policies 3 Correction of errors	02 03	0 0	0 0	0 327	0 0	0 0 0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 327	0 0	0 327
4 Balance on the first day of the previous business year (restated) (ADP 01 to 03)	04
		19.016.430	84.195.807	408.554	800.000	0 0	0	57.678.142	0	0	0	-199.590.748	81.861.224	44.369.409	60.437.203	104.806.612
5 Profit/loss of the period 6 Exchange rate differences from translation of foreign operations	05 06	0 0	0 0	0 0	0 0	0 0 0 0	0 0	0 0	0 0	0 0	0 0	0 0	-12.048.604 0	-12.048.604 0	0 0	-12.048.604 0
7 Changes in revaluation reserves of fixed tangible and intangible assets	07	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	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	09	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	10	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	12	0	0	0	0	0 0	0	0	0	0	0	0	0	0	0	0
13 Other changes in equity unrelated to owners	13	0	0	0	0	0 0	0	0	0	0	0	-9.900.415	0	-9.900.415	-32.311.843	-42.212.258
14 Tax on transactions recognised directly in equity	14	0	0	0	0	0 0	0	0	0	0	0	329.515	0	329.515	0	329.515
15 Increase/decrease in initial (subscribed) capital (other than from reinvesting profit and other than arising from the pre-bankruptcy settlement procedure)	15	0	0	0	0	0 0	0	0	0	0	0	0	0	0	0	0
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	3.088.369	0	0 0	0	0	0	0	0	78.772.855	-81.861.224	0	283.487	283.487
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	3.496.923	800.000	0 0	0	56.177.019	0	0	0	-128.887.670	-12.048.604	22.749.905	28.408.847	51.158.752
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the IFRS)
I OTHER COMPREHENSIVE INCOME OF THE PREVIOUS PERIOD, NET OF TAX	24	0	0	0	0	0 0	0	-1.501.123	0	0	0	-8.069.777	0	-9.570.900	-32.311.843	-41.882.743
(ADP 06 to 14)
II COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD (ADP 05+24)	25	0	0	0	0	0 0	0	-1.501.123	0	0	0	-8.069.777	-12.048.604	-21.619.504	-32.311.843	-53.931.347
III TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD RECOGNISED
DIRECTLY IN EQUITY (ADP 15 to 22)	26	0	0	3.088.369	0	0 0	0	0	0	0	0	78.772.855	-81.861.224	0	283.487	283.487
Current period
1 Balance on the first day of the current business year	27	19.016.430	84.195.807	3.496.923	800.000	0 0	0	54.675.895	0	0	0	-127.770.308	-15.301.329	19.113.418	27.293.451	46.406.869
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	3.496.923	800.000	0 0	0	54.675.895	0	0	0	-127.770.308	-15.301.329	19.113.418	27.293.451	46.406.869
5 Profit/loss of the period 6 Exchange rate differences from translation of foreign operations	31 32	0 0	0 0	0 0	0 0	0 0 0 0	0 0	0 0	0 0	0 0	0 0	0 0	-5.009.366 0	-5.009.366 0	1.257.783 0	-3.751.583 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 13 Other changes in equity unrelated to owners	38 39	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
14 Tax on transactions recognised directly in equity	40	0	0	0	0	0 0	0	0	0	0	0	329.515	0	329.515	0	329.515
15 Increase/decrease in initial (subscribed) capital (other than from reinvesting profit and other than arising from the pre-bankruptcy settlement procedure)	41	0	0	0	0	0 0	0	0	0	0	0	65.738	0	65.738	0	65.738
16 Increase in initial (subscribed) capital arising from the reinvestment of profit	42	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	43	0	0	0	0	0 0	0	0	0	0	0	0	0	0	0	0
18 Redemption of treasury shares/holdings 19 Payment of share in profit/dividend	44 45	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
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	0	0	0 0	0	0	0	0	0	-15.301.329	15.301.329	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	53.174.772	0	0	0	-141.175.261	-5.009.366	14.499.305	28.551.234	43.050.539
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	1.830.638	0	329.515	0	329.515
(ADP 32 to 40) II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP
31+50)	51	0	0	0	0	0 0	0	-1.501.123	0	0	0	1.830.638	-5.009.366	-4.679.851	1.257.783	-3.422.068
III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED DIRECTLY IN EQUITY (ADP 41 to 48)	52	0	0	0	0	0 0	0	0	0	0	0	-15.235.591	15.301.329	65.738	0	65.738

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:01.01.2020. -30.06.2020.

Notes to the financial statements for the semi-annual reporting periods include:

The same accounting policies are applied in preparing the financial statements for the semi-annual period as in the most recent annual financial statements.

Until March 2019, the Granolio group also included the companies Žitar d.o.o. and Žitar konto d.o.o.