Granolio d.d.

Interim / Quarterly Report • Jul 29, 2021

Consolidated financial results for the six months period ended 30 June 2021 (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 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:

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 2021

	In thousands of HRK
	1-6 2021	1-6 2020	change
Operating income	211.390	222.642	(11.252)	(5%)
Operating expenses	(212.552)	(224.484)	11.932	5%
EBIT	(1.162)	(1.842)	680	(37%)
EBIT margin	-1%	(5%)
EBITDA	12.423	9.991	2.432	24%
EBITDA margin	6%	2%
Net financial result	(1.374)	(1.844)	470	25%
Profit tax	-	-
Net result for the period	(2.536)	(3.686)	1.150	31%
Attributable to the Group	(3.273)	(5.009)	1.736	35%

The Group's EBITDA in the first half-year of 2021 amounts to HRK 12,4 million. The increase is mostly the result of a better result in the parent company and other companies.

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

Financial indicators			In thousands of HRK
	30.6.2021	31.12.2020	change
Net assets (Capital and reserves)*	81.375	83.582	(2.207)	(3%)
Total debt	198.578	191.803	6.775	4%
Cash and cash equivalents	990	7.541	(6.551)	(87%)
Given loans, deposits and similar**	21.124	22.781	(1.657)	(7%)
Net debt	176.465	161.481	14.984	9%
Net debt/ EBITDA	2,20	2,07
EBITDA for the last 12 months	80.307	77.875

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

** Loans given, securities and deposits

The decrease in net assets is the result of the realized loss for the first half-year of 2021 in the amount of HRK 2.5 million.

Separate business results for the six months period of 2021

Granolio d.d.				In thousands of HRK
	1-6 2021	1-6 2020		change
Operating income	129.361	131.003	(1.642)	(1%)
EBIT	(3.393)	(6.134)	2.740	45%
margin %	(3%)	(5%)
EBITDA	297	(1.837)	(1.540)	(84%)
margin %	0%	(1%)
Net financial result	(634)	(908)	274	30%
Net result	(4.028)	(7.042)	3.014	43%
margin %	(3,1%)	(5,4%)

In the first half of 2021, a more favorable operating result was achieved compared to the same period last year. A better operating result was achieved in the milling segment.

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

Zdenka - mliječni proizvodi d.o.o.				In thousands of HRK
	1-6 2021	1-6 2020		change
Operating income	77.698	82.095	(4.397)	(5%)
EBIT	1.731	3.109	(1.378)	44%
margin %	2%	4%
EBITDA	3.999	3.672	327	9%
margin %	5%	4%
Net financial result	(257)	(461)	204	44%
Net result	1.474	2.648	(1.174)	44%
margin %	2%	3%

In the first half of 2021, the Company has a revenue decline of 5% compared to the same period last year.

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

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

	1-6 2021	1-6 2020		change
Operating income	12.753	11.929	824	7%
EBIT	501	1.183	(682)	(58%)
margin %	4%	10%
EBITDA	1.943	2.702	(759)	(28%)
margin %	15%	23%
Net financial result	(483)	(474)	(9)	(2%)
Net result	18	709	(691)	(97%)
margin %	0%	6%

In the first half of 2021, the company achieved revenue growth of 7% compared to the same period last year. The reason for this is business optimization.

Employees

In the six months 2021 the Group employed 378 employees based on man-hour basis (in the six months 2020: 468 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 2021.

Annex 1
		ISSUER'S GENERAL DATA
Reporting period:		1.1.2021	to	30.6.2021
Year:		2021
Quarter:		1.
		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	399
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:
	GRANOLIO D.D.			ZAGREB	1244272
	ZDENAČKA FARMA D.O.O.			VELIKI ZDENCI	2095777
	ZDENKA - MLIJEČNI PROIZVODI D.O.O.			VELIKI ZDENCI	1623982
					Yes No
Bookkeeping firm:	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 30.06.2021

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 B) FIXED ASSETS (ADP 003+010+020+031+036)	001 002	0 219.326.647	0 232.155.185
I INTANGIBLE ASSETS (ADP 004 to 009)	003	4.700.495	4.325.929
1 Research and development	004	0	0
2 Concessions, patents, licences, trademarks, software and other			4.325.929
rights	005	4.700.495
3 Goodwill	006	0	0
4 Advances for the purchase of intangible assets	007	0	0
5 Intangible assets in preparation 6 Other intangible assets	008 009	0 0	0 0
II TANGIBLE ASSETS (ADP 011 to 019)	010	213.375.547	226.543.236
1 Land	011	13.824.221	14.324.219
2 Buildings	012	146.194.468	148.252.243
3 Plant and equipment	013	27.459.384	27.526.610
4 Tools, working inventory and transportation assets	014	330.248	811.077
5 Biological assets	015	6.521.281	6.678.641
6 Advances for the purchase of tangible assets	016	0	0
7 Tangible assets in preparation 8 Other tangible assets	017	13.924.394	23.831.306 72.140
9 Investment property	018 019	74.551 5.047.000	5.047.000
III FIXED FINANCIAL ASSETS (ADP 021 to 030)	020	1.250.605	1.286.020
1 Investments in holdings (shares) of undertakings within the group	021	0	0
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	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	028	220.268	255.683
9 Other investments accounted for using the equity method	029	0	0
10 Other fixed financial assets IV RECEIVABLES (ADP 032 to 035)	030 031	1.030.337 0	1.030.337 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	0	0
V DEFERRED TAX ASSETS	036	0	0
C) CURRENT ASSETS (ADP 038+046+053+063)	037	175.218.745	181.966.504
I INVENTORIES (ADP 039 to 045)	038	36.218.032	42.343.047
1 Raw materials and consumables	039	20.977.191	22.333.911
2 Work in progress	040	2.621.254	5.958.613
3 Finished goods	041	5.534.859	8.605.815 5.444.708
4 Merchandise 5 Advances for inventories	042 043	7.084.728 0	0
6 Fixed assets held for sale	044	0	0
7 Biological assets	045	0	0
II RECEIVABLES (ADP 047 to 052)	046	108.898.302	117.616.056
1 Receivables from undertakings within the group	047	7.145.494	7.145.494
2 Receivables from companies linked by virtue of participating interests	048	0	0
3 Customer receivables	049	83.726.713	92.152.203
4 Receivables from employees and members of the undertaking	050	452	1.022
5 Receivables from government and other institutions	051	1.562.823	1.443.587
6 Other receivables	052	16.462.820	16.873.750
III CURRENT FINANCIAL ASSETS (ADP 054 to 062) 1 Investments in holdings (shares) of undertakings within the group	053 054	22.560.966 0	21.017.728 0
2 Investments in other securities of undertakings within the group	055	0	0
3 Loans, deposits, etc. to undertakings within the group			10.190.819
4 Investments in holdings (shares) of companies linked by virtue of	056 057	11.260.819 0	0
participating interests 5 Investment in other securities of companies linked by virtue of	058	0	0
participating interests 6 Loans, deposits etc. to companies linked by virtue of participating	059	0	0
interests 7 Investments in securities	060	149.624	149.624
8 Loans, deposits, etc. given	061	11.150.523	10.677.285
9 Other financial assets	062	0	0
IV CASH AT BANK AND IN HAND	063	7.541.445	989.673
D ) PREPAID EXPENSES AND ACCRUED INCOME	064	403.919	985.705
E) TOTAL ASSETS (ADP 001+002+037+064)	065	394.949.311	415.107.394

OFF-BALANCE SHEET ITEMS	066	0	0
LIABILITIES
A) CAPITAL AND RESERVES (ADP 068 to	067	83.581.738	81.375.500
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	4.296.923	5.958.361
1 Legal reserves	071	3.496.923	5.158.361
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	51.673.648	50.172.524 0
V FAIR VALUE RESERVES AND OTHER (ADP 078 to 082)	077	0
1 Financial assets at fair value through other comprehensive income (i.e. 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	080	0	0
4 Other fair value reserves	081	0	0
5 Exchange differences arising from the translation of foreign
operations (consolidation)	082	0	0
VI RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 084-
085)	083	-140.003.649	-104.284.285
1 Retained profit	084	0	0
2 Loss brought forward	085	140.003.649	104.284.285
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 087-088)	086	35.550.162	-3.272.885
1 Profit for the business year	087	35.550.162	0
2 Loss for the business year	088	0	3.272.885
VIII MINORITY (NON-CONTROLLING) INTEREST	089	28.852.417	29.589.548
B) PROVISIONS (ADP 091 to 096)	090	0	0
1 Provisions for pensions, termination benefits and similar
obligations	091	0	0
2 Provisions for tax liabilities	092	0	0
3 Provisions for ongoing legal cases	093	0	0
4 Provisions for renewal of natural resources	094	0	0
5 Provisions for warranty obligations	095	0	0
6 Other provisions	096	0	0
C) LONG-TERM LIABILITIES (ADP 098 to 108)	097	195.995.231	200.006.098
1 Liabilities to undertakings within the group	098	0	0
2 Liabilities for loans, deposits, etc. of undertakings within the group	099	10.000.000	10.000.000
3 Liabilities to companies linked by virtue of participating interests	100	0	0
4 Liabilities for loans, deposits etc. of companies linked by virtue of
participating interests	101	0	0
5 Liabilities for loans, deposits etc.	102	0	0
6 Liabilities to banks and other financial institutions	103	122.463.656	133.441.186
7 Liabilities for advance payments	104	0	0
8 Liabilities to suppliers	105	25.205.715	20.016.676
9 Liabilities for securities	106	26.982.864	25.534.755
10 Other long-term liabilities	107	0	0
11 Deferred tax liability	108	11.342.996	11.013.481
D) SHORT-TERM LIABILITIES (ADP 110 to 123)	109	113.182.879	131.416.017
1 Liabilities to undertakings within the group	110	1.565.559	138.775
2 Liabilities for loans, deposits, etc. of undertakings within the group	111	0	2.000.000
3 Liabilities to companies linked by virtue of participating interests	112	0	0
4 Liabilities for loans, deposits etc. of companies linked by virtue of	113	0	0
participating interests
5 Liabilities for loans, deposits etc.	114	13.025.500	12.525.500
6 Liabilities to banks and other financial institutions	115	10.808.457	15.076.719
7 Liabilities for advance payments	116	522.875	199.072
8 Liabilities to suppliers	117	70.680.949	85.897.412
9 Liabilities for securities	118	8.522.176	8.233.704
10 Liabilities to employees	119	2.292.855	2.641.617
11 Taxes, contributions and similar liabilities	120	5.077.366	3.986.571
12 Liabilities arising from the share in the result	121	0	0 0
13 Liabilities arising from fixed assets held for sale 14 Other short-term liabilities	122	0	716.647
E) ACCRUALS AND DEFERRED INCOME	123	687.142	2.309.779
	124	2.189.463
F) TOTAL – LIABILITIES (ADP 067+090+097+109+124) G) OFF-BALANCE SHEET ITEMS	125 126	394.949.311 0	415.107.394 0

for the period 01.01.2021 to 30.06.2021 STATEMENT OF PROFIT OR LOSS

in HRK

Submitter: Granolio d.d.				Current period
Item	ADP code	Cumulative	Same period of the previous year Quarter	Cumulative	Quarter
1	2	3	4	5	6
I OPERATING INCOME (ADP 002 to 006) 1 Income from sales with undertakings within the group	001 002	222.641.936 0	106.717.699 0	211.389.980 0	107.511.257 0
2 Income from sales (outside group)	003	214.525.875	101.496.916	204.130.201	104.702.984
3 Income from the use of own products, goods and services 4 Other operating income with undertakings within the group	004 005	344.871 0	192.050 0	390.512 0	175.165 0
5 Other operating income (outside the group)	006	7.771.190	5.028.733	6.869.267	2.633.108
II OPERATING EXPENSES (ADP 08+009+013+017+018+019+022+029)	007	224.483.823	105.561.088	212.551.835	108.126.749
1 Changes in inventories of work in progress and finished goods 2 Material costs (ADP 010 to 012)	008	-1.228.322	-2.237.985 89.993.331	-6.483.419 181.744.972	-3.525.941 92.945.496
a) Costs of raw materials and consumables	009 010	190.008.447 147.675.618	66.980.815	142.421.090	72.107.728
b) Costs of goods sold c) Other external costs	011	28.384.108	16.213.470 6.799.046	25.756.582 13.567.300	13.769.049 7.068.719
3 Staff costs (ADP 014 to 016)	012 013	13.948.721 18.843.364	9.446.426	19.712.398	10.044.711
a) Net salaries and wages	014	12.359.090	6.210.348 2.036.720	13.073.196 4.179.856	6.648.472 2.144.937
b) Tax and contributions from salary costs c) Contributions on salaries	015 016	4.084.908 2.399.366	1.199.358	2.459.346	1.251.302
4 Depreciation	017	11.833.386	5.691.099 1.598.630	11.261.009 3.218.107	5.523.532 1.697.128
5 Other costs 6 Value adjustments (ADP 020+021)	018 019	3.052.636 0	0	0	0
a) fixed assets other than financial assets b) current assets other than financial assets	020	0	0 0	0 0	0 0
7 Provisions (ADP 023 to 028)	021 022	0 0	0	0	0
a) Provisions for pensions, termination benefits and similar b) Provisions for tax liabilities	023	0	0 0	0 0	0 0
c) Provisions for ongoing legal cases	024 025	0 0	0	0	0
d) Provisions for renewal of natural resources e) Provisions for warranty obligations	026	0	0 0	0 0	0 0
f) Other provisions	027 028	0 0	0	0	0
8 Other operating expenses	029	1.974.312	1.069.587	3.098.768	1.441.823
III FINANCIAL INCOME (ADP 031 to 040) 1 Income from investments in holdings (shares) of undertakings within	030	687.969	477.906 0	423.708 0	350.046 0
the group 2 Income from investments in holdings (shares) of companies linked by	031	0
virtue of participating interests	032	0	0	0	0
3 Income from other long-term financial investment and loans granted to undertakings within the group	033	0	0	0	0
4 Other interest income from operations with undertakings within the			0	0	0
group 5 Exchange rate differences and other financial income from operations	034	0
with undertakings within the group	035	0	0	0	0
6 Income from other long-term financial investments and loans 7 Other interest income	036 037	61.257 158.635	61.257 147.086	0 43.307	0 6.706
8 Exchange rate differences and other financial income	038	468.077	269.563	380.401	343.340
9 Unrealised gains (income) from financial assets	039	0	0 0	0 0	0 0
10 Other financial income IV FINANCIAL EXPENSES (ADP 042 to 048)	040 041	0 2.531.597	1.198.789	1.797.607	919.837
1 Interest expenses and similar expenses with undertakings within the group	042	349.813	175.698	337.341	169.603
2 Exchange rate differences and other expenses from operations with			0	0	0
undertakings within the group 3 Interest expenses and similar expenses	043	0	538.872	1.108.585	578.966
4 Exchange rate differences and other expenses	044 045	1.306.235 835.329	484.159	307.180	170.051
5 Unrealised losses (expenses) from financial assets	046	0	0 0	0 0	0 0
6 Value adjustments of financial assets (net) 7 Other financial expenses	047 048	0 40.220	60	44.501	1.217
V SHARE IN PROFIT FROM UNDERTAKINGS LINKED BY VRITUE OF PARTICIPATING INTERESTS	049	0	0	0	0
VI SHARE IN PROFIT FROM JOINT VENTURES	050	0	0	0	0
VII SHARE IN LOSS OF COMPANIES LINKED BY VIRTUE OF PARTICIPATING INTEREST	051	0	0	0	0
VIII SHARE IN LOSS OF JOINT VENTURES	052	0	0	0	0
IX TOTAL INCOME (ADP 001+030+049 +050) X TOTAL EXPENDITURE (ADP 007+041+051 + 052)	053 054	223.329.905 227.015.420	107.195.605 106.759.877	211.813.688 214.349.442	107.861.303 109.046.586
XI PRE-TAX PROFIT OR LOSS (ADP 053-054)	055	-3.685.515	435.728	-2.535.754	-1.185.283
1 Pre-tax profit (ADP 053-054) 2 Pre-tax loss (ADP 054-053)	056 057	0 -3.685.515	435.728 0	0 -2.535.754	0 -1.185.283
XII INCOME TAX	058	0	0	0	0
XIII PROFIT OR LOSS FOR THE PERIOD (ADP 055-059) 1 Profit for the period (ADP 055-059)	059 060	-3.685.515 0	435.728 435.728	-2.535.754 0	-1.185.283 0
2 Loss for the period (ADP 059-055)	061	-3.685.515	0	-2.535.754	-1.185.283
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 063-064)	062	0	0	0	0
1 Pre-tax profit from discontinued operations 2 Pre-tax loss on discontinued operations	063 064	0 0	0 0	0 0	0 0
XV INCOME TAX OF DISCONTINUED OPERATIONS	065	0	0	0	0
1 Discontinued operations profit for the period (ADP 062-065) 2 Discontinued operations loss for the period (ADP 065-062)	066 067	0 0	0 0	0 0	0 0
TOTAL OPERATIONS (to be filled in only by undertakings subject to IFRS with discontinued operations)
XVI PRE-TAX PROFIT OR LOSS (ADP 055-+062) 1 Pre-tax profit (ADP 068)	068 069	0 0	0 0	0 0	0 0
2 Pre-tax loss (ADP 068)	070	0	0	0	0
XVII INCOME TAX (ADP 058+065) XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 068-071)	071 072	0 0	0 0	0 0	0 0
1 Profit for the period (ADP 068-071)	073	0	0	0	0
2 Loss for the period (ADP 071-068) APPENDIX to the P&L (to be filled in by undertakings that draw up consolidated annual financial statements)	074	0	0	0	0
XIX PROFIT OR LOSS FOR THE PERIOD (ADP 076+077)	075	-3.685.515	435.728	-2.535.754	-1.185.282
1 Attributable to owners of the parent 2 Attributable to minority (non-controlling) interest	076 077	-5.009.366 1.323.851	-799.118 1.234.846	-3.272.885 737.131	-1.607.733 422.451
STATEMENT OF OTHER COMPRHENSIVE INCOME (to be filled in by undertakings subject to IFRS)
I PROFIT OR LOSS FOR THE PERIOD II OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX	078	-3.685.515	435.728	-2.535.754	-1.185.282
(ADP 80+ 87)	079	0	0	0	0
III Items that will not be reclassified to profit or loss (ADP 081 to 085)	080	0	0	0	0
1 Changes in revaluation reserves of fixed tangible and intangible assets	081	0	0	0	0
2 Gains or losses from subsequent measurement of equity	082	0	0	0	0
instruments at fair value through other comprehensive income 3 Fair value changes of financial liabilities at fair value through
statement of profit or loss, attributable to changes in their credit risk	083	0	0	0	0
4 Actuarial gains/losses on the defined benefit obligation	084	0	0	0	0
5 Other items that will not be reclassified	085	0	0	0	0
6 Income tax relating to items that will not be reclassified	086	0	0	0	0
IV Items that may be reclassified to profit or loss (ADP 088 to 095)	087	0	0	0	0
1 Exchange rate differences from translation of foreign operations	088	0	0	0	0
2 Gains or losses from subsequent measurement of debt securities at	089	0	0	0	0
fair value through other comprehensive income 3 Profit or loss arising from effective cash flow hedging	090	0	0	0	0

4 Profit or loss arising from effective hedge of a net investment in a foreign operation	091	0	0	0	0
5 Share in other comprehensive income/loss of companies linked by virtue of participating interests	092	0	0	0	0
6 Changes in fair value of the time value of option	093	0	0	0	0
7 Changes in fair value of forward elements of forward contracts	094	0	0	0	0
8 Other items that may be reclassified to profit or loss	095	0	0	0	0
9 Income tax relating to items that may be reclassified to profit or loss	096	0	0	0	0
V NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 080+087- 086 - 096)	097	0	0	0	0
VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 078+097)	098	-3.685.515	435.728	-2.535.754	-1.185.282
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 100+101)	099	-3.685.515	435.728	-2.535.754	-1.185.282
1 Attributable to owners of the parent	100	-5.009.366	-799.118	-3.272.885	-1.607.733
2 Attributable to minority (non-controlling) interest	101	1.323.851	1.234.846	737.131	422.451

STATEMENT OF CASH FLOWS - indirect method for the period 01.01.2021. to 30.06.2021.

Submitter: Granolio d.d.			in HRK
Item	ADP code	Same period of the previous year	Current period
1	2	3	4
Cash flow from operating activities
1 Pre-tax profit 2 Adjustments (ADP 003 to 010):	001	-3.685.516	-2.535.754
a) Depreciation	002 003	11.480.757 11.833.387	11.896.396 11.261.008
b) Gains and losses from sale and value adjustment of fixed tangible and intangible assets	004	956.219	727.934
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	006	-158.635	-21.185
e) Interest expenses	007	1.123.774	1.445.926
f) Provisions	008	0	0
g) Exchange rate differences (unrealised)	009	0	0
h) Other adjustments for non-cash transactions and unrealised gains and losses	010	-2.273.988	-1.517.287
I Cash flow increase or decrease before changes in working capital (ADP 001+002)	011	7.795.241	9.360.642
3 Changes in the working capital (ADP 013 to 016)	012	2.327.646	-5.590.131
a) Increase or decrease in short-term liabilities	013	1.898.405	10.158.227
b) Increase or decrease in short-term receivables	014	-2.598.729	-9.623.342
c) Increase or decrease in inventories	015	3.027.970	-6.125.016
d) Other increase or decrease in working capital	016	0	0
II Cash from operations (ADP 011+012)	017	10.122.887	3.770.511
4 Interest paid	018	-1.215.124	-1.284.572
5 Income tax paid A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019)	019	0	0 2.485.939
Cash flow from investment activities	020	8.907.763
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 4 Dividends received	023 024	157.096 0	126.293 0
5 Cash receipts from repayment of loans and deposits	025	23.725	5.211.255
6 Other cash receipts from investment activities	026	1.000.000	0
III Total cash receipts from investment activities (ADP 021 to 026)	027	1.180.821	5.337.548
1 Cash payments for the purchase of fixed tangible and intangible assets	028	-4.342.332	-23.292.227
2 Cash payments for the acquisition of financial instruments	029	0	0
3 Cash payments for loans and deposits for the period	030	0	-2.540.000
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	-4.342.332	-25.832.227
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033)	034	-3.161.511	-20.494.679
Cash flow from financing activities
1 Cash receipts from the increase in initial (subscribed) capital 2 Cash receipts from the issue of equity financial instruments and debt	035	0	0 0
financial instruments 3 Cash receipts from credit principals, loans and other borrowings	036 037	0 5.250.633	34.976.823
4 Other cash receipts from financing activities	038	0	0
V Total cash receipts from financing activities (ADP 035 to 038)	039	5.250.633	34.976.823
1 Cash payments for the repayment of credit principals, loans and other borrowings and debt financial instruments	040	-5.423.626	-21.534.975
2 Cash payments for dividends	041	0	0
3 Cash payments for finance lease	042	-339.524	-248.300
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	-2.251.188	-1.736.581
VI Total cash payments from financing activities (ADP 040 to 044)	045	-8.014.338	-23.519.856
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045)	046	-2.763.705	11.456.967
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	2.982.547	-6.551.773
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	049	3.298.480	7.541.445
F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD(ADP 048+049)	050	6.281.027	989.672

STATEMENT OF CHANGES IN EQUITY

for the period from 1.1.2021 to	30.6.2021																	in HRK
									Attributable to owners of the parent
										Fair value of financial assets		Hedge of a net		Exchange rate				Minority (non
Item	ADP code	Initial (subscribed)	Capital reserves	Legal reserves	Reserves for	Treasury shares and holdings		Statutory reserves Other reserves	Revaluation	through other	Cash flow hedge -	investment in a	Other fair value	differences from	Retained profit / loss brought	Profit/loss for the	Total attributable to owners of the	controlling)	Total capital and reserves
		capital			treasury shares	(deductible item)			reserves	comprehensive	effective portion	foreign operation -	reserves	translation of	forward	business year	parent	interest
										income (available for sale)		effective portion		foreign operations
1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18 (3 to 6 - 7	19	20 (18+19)
Previous period																	+ 8 to 17)
1 Balance on the first day of the previous business year	01	19.016.430	84.195.807	3.496.923	800.000	0		0	0 54.675.895		0 0		0	0	0 -127.770.308	-15.301.329	19.113.418	27.293.451	46.406.869
2 Changes in accounting policies	02	0		0 0	0	0		0	0 0		0 0		0	0	0	0 0	0	0	0
3 Correction of errors	03	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 previous business year (restated) (ADP 01 to 03)	04	19.016.430	84.195.807	3.496.923	800.000	0		0	0 54.675.895		0 0		0	0	0 -127.770.308	-15.301.329	19.113.418	27.293.451	46.406.869
5 Profit/loss of the period	05	0		0 0	0	0		0	0 0		0 0		0			0 -5.009.366	-5.009.366	1.257.783	-3.751.583
6 Exchange rate differences from translation of foreign operations	06	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	07	0		0 0	0	0		0	0 -1.501.123		0 0		0		1.501.123	0	0	0	0
8 Gains or losses from subsequent measurement of financial assets at fair value through other comprehensive income (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	10	0		0 0	0	0		0	0 0		0 0		0	0	0	0 0	0	0	0
operation
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	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	0	0
13 Other changes in equity unrelated to owners	13	0		0 0	0	0		0	0 0		0 0		0	0	0 65.738	0	65.738	0	65.738
14 Tax on transactions recognised directly in equity	14	0		0 0	0	0		0	0 0		0 0		0	0	0 329.515	0	329.515	0	329.515
15 Decrease in initial (subscribed) capital (other than arising from the pre bankruptcy settlement procedure or from the reinvestment of profit)	15	0		0 0	0	0		0	0 0		0 0		0	0	0	0 0	0	0	0
16 Decrease in initial (subscribed) capital arising from the pre-bankruptcy settlement procedure	16	0		0 0	0	0		0	0 0		0 0		0	0	0	0 0	0	0	0
17 Decrease in initial (subscribed) capital arising from the reinvestment of profit	17	0		0 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	0	0
19 Payments from members/shareholders	19	0		0 0	0	0		0	0 0		0 0		0	0	0	0 0	0	0	0
20 Payment of share in profit/dividend 21 Other distributions and payments to members/shareholders	20 21	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 -15.301.329	0 0 15.301.329	0 0	0 0	0 0
22 Transfer to reserves according to the annual schedule	22	0		0 0	0	0		0	0 0		0 0		0	0	0	0 0	0	0	0
23 Increase in reserves arising from the pre-bankruptcy settlement procedure	23	0		0 0	0	0		0	0 0		0 0		0	0	0	0 0	0	0	0
24 Balance on the last day of the previous business year reporting period (ADP 04 to 23)	24	19.016.430	84.195.807	3.496.923	800.000	0		0	0 53.174.772		0 0		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 OF THE PREVIOUS PERIOD, NET OF
TAX (ADP 06 to 14)	25	0		0 0	0	0		0	0 -1.501.123		0 0		0	0	0 1.896.376	0	395.253	0	395.253
II COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD (ADP
05+25)	26	0		0 0	0	0		0	0 -1.501.123		0 0		0	0	0 1.896.376	-5.009.366	-4.614.113	1.257.783	-3.356.330
III TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD
RECOGNISED DIRECTLY IN EQUITY (ADP 15 to 23)	27	0		0 0	0	0		0	0 0		0 0		0	0	0 -15.301.329	15.301.329	0	0	0
Current period
1 Balance on the first day of the current business year	28	19.016.430	84.195.807	3.496.923	800.000	0		0	0 51.673.648		0 0		0	0	0 -140.003.649	35.550.162	54.729.321	28.852.416	83.581.737
2 Changes in accounting policies 3 Correction of errors	29 30	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	0 0	0 0
4 Balance on the first day of the current business year (restated) (AOP 28 to
30)	31	19.016.430	84.195.807	3.496.923	800.000	0		0	0 51.673.648		0 0		0	0	0 -140.003.649	35.550.162	54.729.321	28.852.416	83.581.737
5 Profit/loss of the period	32	0		0 0	0	0		0	0 0		0 0		0			0 -3.272.885	-3.272.885	737.131	-2.535.754
6 Exchange rate differences from translation of foreign operations	33	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	34	0		0 0	0	0		0	0 -1.501.124		0 0		0		1.501.124	0	0	0	0
8 Gains or losses from subsequent measurement of financial assets at fair value	35	0		0 0	0	0		0	0 0		0 0		0			0 0	0	0	0
through other comprehensive income (available for sale)
9 Profit or loss arising from effective cash flow hedge	36	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	37	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	38	0		0 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	39 40	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	0 0	0 0
14 Tax on transactions recognised directly in equity	41	0		0 0	0	0		0	0 0		0 0		0	0	0 329.516	0	329.516	0	329.516
15 Decrease in initial (subscribed) capital (other than arising from the pre	42	0		0 0	0	0		0	0 0		0 0		0	0	0	0 0	0	0	0
bankruptcy settlement procedure or from the reinvestment of profit)
16 Decrease 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	0	0
17 Decrease in initial (subscribed) capital arising from the reinvestment of profit	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
18 Redemption of treasury shares/holdings 19 Payments from members/shareholders	45 46	0 0		0 0	0	0		0	0 0		0 0		0	0	0	0 0	0 0	0 0	0 0
20 Payment of share in profit/dividend	47	0		0 0	0	0		0	0 0		0 0		0	0	0	0 0	0	0	0
21 Other distributions and payments to members/shareholders	48	0		0 0	0	0		0	0 0		0 0		0	0	0	0 0	0	0	0
22 Carryforward per annual plane 23 Increase in reserves arising from the pre-bankruptcy settlement procedure	49	0		0 1.661.437 0 0	0 0	0 0		0 0	0 0 0 0		0 0 0 0		0 0	0 0	0 33.888.725 0	-35.550.162 0 0	0	0	0
24 Balance on the last day of the current business year reporting period	50	0															0	0	0
(ADP 31 to 50)	51	19.016.430	84.195.807	5.158.360	800.000	0		0	0 50.172.524		0 0		0	0	0 -104.284.284	-3.272.885	51.785.952	29.589.547	81.375.499
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	0		0 0	0	0		0	0 -1.501.124		0 0		0	0	0 1.830.640	0	329.516	0	329.516
TAX (ADP 33 to 41)
II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP 32 do 52)	53	0		0 0	0	0		0	0 -1.501.124		0 0		0	0	0 1.830.640	-3.272.885	-2.943.369	737.131	-2.206.238
III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED DIRECTLY IN EQUITY (ADP 42 to 50)	54	0		0 1.661.437	0	0		0	0 0		0 0		0	0	0 33.888.725	-35.550.162	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: 01.01.2021.-30.06.2021.

The notes to the financial statements are attached to the published documentation.

Notes to the consolidated report for the six months period ended June 30, 2021

1. The company that is the subject of reporting

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.

2. Basis of preparation of financial statements and significant accounting policies

The same accounting policies are applied when preparing the financial statements for previous periods as in the last quarterly financial report.

3. Financial liabilities, guarantees or contingencies not included in the balance sheet

			Exchange rate HNB June
			30,2021	7,491244
		Loan balance in original currency on	Balance in HRK per day
	Approved amount	30.06.2021	30.06.2021	Loan maturity
Zdenka- HBOR loan	3.294.190 €	704.398 €	5.276.820	31.12.2024
Zdenka- HBOR loan	40.000.000 kn	9.157.579 kn	9.157.579	30.4.2024
Zdenka- HBOR loan	1.395.751 €	385.709 €	2.889.438	31.12.2023
Zdenka- HBOR loan EUR	2.286.536 €	2.286.536 €	17.129.003	30.9.2032
Ukupno			34.452.840

Guarantees and co-debts have been given on loans to members of the Zdenka-mliječni proizvodi d.o.o.

4. The amount and nature of individual items of income or expense of exceptional size or occurrence

There was no revenue or expenditure of extraordinary size or occurrence.

5. Liabilities maturing after more than five years and debts covered by valuables insurance provided by the Company

						In thousands of HRK
	state
	June 30, 2021.	2021.	2022.	2023.	2024.	from 2025. godine
Loan liabilities	147.440	8.755	12.236	12.236	15.356	98.857
	147.440	8.755	12.236	12.236	15.356	98.857

Liabilities to banks are secured by collateral on assets, bills of exchange and promissory notes

in thousands of HRK

	state
	June30, 2021.	2021.	2022.	2023.	2024.	od 2025.
Liabilities on securities	25.535	2.375	2.896	2.896	2.896	14.472
	25.535	2.375	2.896	2.896	2.896	14.472

Liabilities under securities are secured by bills of exchange and promissory notes

6. Average number of employees during the business year

Average number of employees during the current period: 399

7. Capitalized salary cost during the year

The Company did not capitalize the cost of salaries in the business year.

8. Deferred taxes

June 30, 2021.

January 1, 2021.	11.343
Reduction	(330)
June 30, 2021	11.013

1. Name and registered office of each company in which the issuer, either alone or through a person acting in its own name but on behalf of the issuer, holds a participating interest, stating the amount of capital held, the amount of total capital and reserves, and profit or loss

Zdenačka farma d.o.o.,Mate Lovraka 118/b, Veliki Zdenci, OIB 35460243768

Zdenka-mliječni proizvodi d.o.o.,Trg kralja Tomislava 15, Veliki Zdenci, OIB 45651553790

June 30, 2021. in thousands of HRK

	SHARE OF CAPITAL	TOTAL CAPITAL AND RESERVES	PROFIT / LOSS
ZDENAČKA FARMA d.o.o.	19.598	19.598	18
ZDENKA -MLIJEČNI PROIZVODI d.o.o.	29.589	59.179	1.474

10. Number and nominal value of shares subscribed during the business year within the authorized capital

The company had no subscription of shares.

1. Existence of any certificates of participation, convertible debentures, guarantees, options or similar securities or rights, indicating their number and the rights conferring The Group has no certificates of participation, convertible debentures, guarantees, options or the like securities or rights.

The company has no certificates.

1. Name, registered office and legal form of each company in which the issuer has unlimited liability The Group has no stake in companies with unlimited liability.

The company holds 100% of the company Zdenačka farma d.o.o., Veliki Zdenci, Mate Lovraka 118 / b, OIB 35460243768

• .
• 1. Name and registered office of the company compiling the quarterly consolidated financial statements of the largest group of companies in which the issuer participates as a controlled member of the group The company is the ultimate parent and is not a controlled member of another group.

The company compiles quarterly consolidated financial statements which are published on the Zagreb Stock Exchange, Hanfa and the company's website www.granolio.hr.

1. Name and registered office of the company compiling the annual consolidated financial statements of the smallest group of companies in which the issuer participates as a controlled member and which is also included in the group of companies referred to in point 13.

The company is the ultimate parent and is not a controlled member of the other group.

1. The place where copies of the quarterly consolidated financial statements referred to in points 13 and 14 can be obtained.

The company prepares quarterly non-consolidated and consolidated financial statements which are published on the Zagreb Stock Exchange, Hanfia and the company's website www.granolio.hr.

1. Nature and business purpose of arrangements of companies not included in the balance sheet and financial impact of those arrangements on the issuer, provided that the risks or rewards of such arrangements are material and to the extent that disclosure of such risks or rewards is necessary to assess the issuer's financial condition

The Company has no material arrangements with companies that are not included in the presented unconsolidated financial statements.

17. Nature and financial impact of significant events that occurred after the balance sheet date and were not reflected in the income statement or balance sheet

There were no significant events after the balance sheet date.