Granolio d.d.

Quarterly Report • Oct 30, 2018

Unconsolidated financial results for the nine months period ended 30 Spetember 2018 (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 the Zdenka mliječni proizvodi d.o.o. and Žitar d.o.o companies. The above companies have been consolidated into the Granolio Group since 2011.

Subsidiary Žitar d.o.o. has founded another company, Žitar konto d.o.o., which is fully owned by it. Žitar konto d.o.o. financial statements are part of the consolidated financial statements.

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 29 January 2018 Company received a notice on the acquisition of 150,000 shares by HOK osiguranje (that represent 7,89% of ownership). HOK acqured shares in OTC transaction with the pension fund PBZ CROATIA OSIGURANJE. As at 30 September 2018, company HOK held 19,9% of ownership in Granolio.

As at 14 March 2018, Company and started process of merging it's related party Prerada žitarica into Granolio.

As at 30 April 2018, Commercial court in Zagreb has reached a resolution on the forementioned merger by which the company Prerada žitarica ceased to exist.

As at 17 October 2018, Commercial court in Zagreb has determined that the date of the hearing, on which voting for the restructuring plan should take place, is going to be the 22 November 2018. It is expected that the creditors will accept the restructuring plan and that the Company will continue to operate and repay it's debt according to the proposed settlement.

Company's financial indicators for the nine months of 2018

		In thousands HRK
Granolio d.d.	1-9 2018	1-9 2017	change
Operating income	194.771	267.922	(73.151)	(27%)
Operating expenses	205.186	276.530	(71.344)	(26%)
EBIT	(10.415)	(8.608)	(1.807)	21%
EBIT margin	-5%	-3%
EBITDA	(2.612)	(414)	(2.198)	531%
EBITDA margin	-1%	0%
Net financial result	319	(17.804)	18.123	(102%)
Net result for the period	(10.096)	(26.412)	16.316	62%

*EBITDA= EBIT + depreciation + impairment expenses

In the nine months in 2018, Company has made less favorable operating result (EBIT) compared to the same period last year. It was caused by extraordinary one-off costs.

Net financial result represents the difference between financial revenues and financial expenses. In the nine months in 2018, interest expense on loans received were not charged due to the pre-bankruptcy process still ongoing. Therefore, in the first half-year 2018, the Company has made net financial income.

			In thousands HRK
Granolio d.d.	30.9.2018	31.12.2017	change
Net asset (capital and reserves)	(17.548)	(23.855)	6.307	(26%)
Total debt to financial institutions	388.743	389.977	(1.234)	(0%)
Cash and cash equivalents	1.161	2.801	(1.640)	(59%)
Loans given, deposits etc.*	40.812	41.619	(807)	(2%)
Net debt	346.770	345.557	1.213	0%
Net debt/EBITDA	(42,35)	(57,70)	15	(27%)
EBITDA for the last 12 months	(8.187)	(5.989)	(2.198)	37%

*Loans given, securities and deposits

In the nine months of 2018, total debt toward financial institutions was decreased by repayments of financial lease and bills of exchange that are not part of the pre-bankruptcy settlement.

As at 30 September 2018 the Company's regressive liabilities in the amount 85 million HRK out of which 20 million HRK is stated in financial liabilities and remaining 65 million HRK is stated within other current liabilities.

All forementioned regressive liabilities are related to business relations with the Agrokor group.

Overview of the business operations for the nine months of 2018 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:

Flour

Income made from sales of flour is almost as equal to the same period last year.

Compared to the same period last year, fewer quantity of flour has been sold but for a higher selling price. Prices of flour have increased due to the increase of prices of raw materials.

Sowing material

Income from sale of sowing material is lower in the nine months 2018 than income earned in the comparing period. The reason for that is insufficient working capital.

Trading

Trading segment has made decreased sales in thenine months 2018 compared to the same period last year. The reason for that is insufficient working capital.

Other

Sales income in the Other segment is comprised of cattle breeding, income from storage and drying goods and other services. It is important to state that silo is used to meet needs of segments Flour and Trading

Employees

In the nine months period 2018 the Company employed 152 employees based on man-hour basis (in the nine months period 2017: 178 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 nine months period of 2018.

Annex 1.
Reporting period		1.1.2018	to		30.9.2018
			Quarterly financial report TFI-POD
Tax number (MB):	01244272
Company registration number
(MBS):	080111595
Personal identification number (OIB):	59064993527
Issuing company: GRANOLIO d.d.
Postal code and place	10000		ZAGREB
Street and house number: BUDMANIJEVA 5
	E-mail address: granolio@granolio.hr
	Internet address www.granolio.hr
Municipality/city code and name	133
County code and name	GRAD ZAGREB 21				Number of employees:	156
Consolidated report:	NO				(period end) NKD code:	1061
Companies of the consolidation subject (according to IFRS):			Seat:		MB:
Bookkeeping service:
Contact person:	JASENKA KORDIĆ (only surname and name)
	Telephone: 01/6320-261			Telefax:	01/6320-224
	E-mail address: jkordic@granolio.hr
Family name and name: HRVOJE FILIPOVIĆ
	(person authorized to represent the company)
notes to the financial statements) financial statements.	Documentation for public disclosure: 1. Financial statements (balance sheet, income statement, cash flow statement, statement of changes in equity, 2. Non-consolidated financial results for the 12 months period ended 31 December 2016,				3. Management Board statement of liability and Statements of responsibility of executives responsible for preparing
		L.S.			(signature of the person authorized to represent the company)

Balance Sheet

as of 30.09.2018

Company: GRANOLIO d.d.
Position	AOP	Previous period	Current period
1	2	3	4
ASSETS
A) RECEIVABLES FOR SUBSCRIBED BUT NOT PAID-IN CAPITAL	001
B) LONG-TERM ASSETS (003+010+020+031+036)	002	426.471.549	395.122.305
I. INTANGIBLE ASSETS (004 do 009)	003	124.361.664	123.113.964
1. Assets development	004
2. Concessions, patents, licenses, trademarks, service marks, software and other rights	005	120.331.497	120.333.297
3. Goodwill	006	0	0
4. Prepayments for purchase of intangible assets	007
5. Intangible assets in preparation	008
6. Other intangible assets	009	4.030.167	2.780.667
II. TANGIBLE ASSETS (011 do 019) 1. Land	010	132.386.401	148.200.100 9.155.420
2. Buildings	011 012	8.303.370 108.954.232	116.299.424
3. Plant and equipement	013	14.121.832	12.762.597
4. Tools, working inventory and transportation assets	014	906.703	568.823
5. Biological assets	015
6. Prepayments for tangible assets	016
7. Tangible assets in progress	017	24.225	9.334.080
8. Other tangible assets	018	76.039	79.756
9. Investments in buildings	019
III. LONG-TERM FINANCIAL ASSETS (021 do 030)	020	169.708.484	123.793.241
1. Investments (shares) with related parties within the Group	021	155.964.074	110.048.831
2. Investments in other securities of related parties within the Group	022
3. Loans, deposits and similar assets to related parties within the Group	023
4. Investments (shares) with entrepreneurs in whom the entity holds participating interests	024
5. Investments in other securities of entrepreneurs in whom the entity holds participating interests	025
6. Loans, deposits and similar assets to entrepreneurs in whom the entity holds participating	026
7. Investments in securities	027
8. Loans, deposits and similar assets	028	258.820	258.820
9. Other investments accounted by equity method 10. Other long - term financial assets	029 030	13.485.590	13.485.590
IV. RECEIVABLES (032 do 035)	031	15.000	15.000
1. Receivables from related parties within the Group	032
2. Receivables from participating parties	033
3. Accounts receivable	034
4. Other receivables	035	15.000	15.000
V. DEFERRED TAX ASSET	036
C) SHORT TERM ASSETS (038+046+053+063)	037	151.206.835	157.425.570
I. INVENTORIES (039 do 045)	038	20.566.701	24.104.022
1. Raw materials and supplies	039	11.955.946	7.124.359
2. Work in progress	040	608.463	205.410
3. Finished goods	041	1.629.346	1.960.867
4. Merchandise	042	6.372.946	14.813.386
5. Prepayments for inventories	043
6. Long term assets held for sale	044
7. Biological assets	045
II. RECEIVABLES (047 do 052)	046	86.478.862	91.606.652 5.331.681
1. Receivables from related parties within the Group 2. Receivables from participating parties	047 048	3.112.298
3. Accounts receivable	049	55.779.215	58.377.031
4. Receivables from employees and members of related parties	050	0	0
5. Receivables from government and other institutions	051	3.335.881	586.353
6. Other receivables	052	24.251.468	27.311.587
III. SHORT TERM FINANCIAL ASSETS (054 do 062)	053	41.360.548	40.553.435
1. Investments (shares) with related parties within the Group	054
2. Investments in other securities of related parties within the Group	055
3. Loans, deposits and similar assets to related parties within the Group	056	28.149.773	27.400.773
4. Investments (shares) with entrepreneurs in whom the entity holds participating interests	057
5. Investments in other securities of entrepreneurs in whom the entity holds participating interests	058
6. Loans, deposits and similar assets to entrepreneurs in whom the entity holds participating	059
7. Investments in securities	060	178.281	178.281
8. Loans, deposits and similar assets	061	13.032.494	12.974.381
9. Other financial assets	062
IV. CASH AND CASH EQUIVALENTS D) PREPAID EXPENSES AND ACCRUED REVENUE	063 064	2.800.724 616.706	1.161.461 592.588
E) TOTAL ASSETS (001+002+037+064)	065	578.295.090	553.140.463
F) OFF-BALANCE RECORDS	066	9.276.687	9.718.413

EQUITY AND LIABILITIES
A) ISSUED CAPITAL AND RESERVES (068 do 070+076+077+081+084+087)	067	-23.854.782	$-17.547.825$
I. SUBSCRIBED SHARE CAPITAL	068	19.016.430	19.016.430
II. CAPITAL RESERVES	069	84.186.547	84.195.807
III.RESERVES FROM PROFIT (071+072-073+074+075)	070	1.208.554	1.208.554
1. Reserves prescribed by law	071	408.554	408.554
2. Reserves for treasury shares	072	800.000	800.000
3. Treasury shares (deductible items)	073
4. Statutory reserves	074
5. Other reserves	075
IV. REVALUATION RESERVES	076	60.117.173	58.428.704
V. FAIR VALUE RESERVES(078-080)	077
1. Fair value of financial assets available for sale	078
2. Efficient part of cash flow hedging	079
3. Efficient part of hedging of a net investment in foreign countries	080
V. RETAINED EARNINGS OR ACCUMULATED LOSS (082-083)	081	9.803.142	-170.301.333
1. Retained earnings	082	9.803.142
2. Accumulated loss	083		170.301.333
VI. PROFIT/LOSS FOR THE CURRENT YEAR (085-086)	084	-198.186.628	$-10.095.987$
1. Profit for the current year	085
2. Loss for the current year	086	198.186.628	10.095.987
VII. MINORITY (NON-CONTROLLING) INTEREST	087
B) PROVISIONS (089 do 094)	088	0	$\pmb{0}$
1. Provisions for pensions, severance pay and similar libabilities	089
2. Provisions for tax liabilities	090
3. Provisions for ongoing legal cases
4. Provisions for costs of natural resources regeneration	091 092
5. Provisions for guarantees costs 6. Other provisions	093
	094
C) LONG - TERM LIABILITIES (096 do 106) 1. Liabilites to related parties within the Group	095	13.953.913	13.212.128
	096
2. Liabilities for loans, deposits, etc. to related parties within the Group	097
3. Liabilities to entrepreneurs in whom the entity holds participating interests	098
4. Liabilities for loans, deposits, etc. to entrepreneurs in whom the entity holds participating	099
5. Liabilities for loans, deposits, etc.	100
6. Liabilities to banks and other financial institutions	101	757.460	386.315
7. Liabilities for received prepayments	102
8. Accounts payable	103
9. Liabilities arising from debt securities	104
10. Other long-term liabilities	105
11. Deferred tax liability	106	13.196.453	12.825.813
D) SHORT - TERM LIABILITIES (108 do 121)	107	587.525.457	557.209.421
1. Liabilites to related parties within the Group	108	4.844.028	30.532
2. Liabilities for loans, deposits, etc. to related parties within the Group	109	34.319.698
3. Liabilities to entrepreneurs in whom the entity holds participating interests	110
4. Liabilities for loans, deposits, etc. to entrepreneurs in whom the entity holds participating	111
5. Liabilities for loans, deposits, etc.	112
6. Liabilities to banks and other financial institutions	113	341.669.488	343.036.431
7. Liabilities for received prepayments	114	2.948.210	2.663.921
8. Accounts payable	115	77.240.186	86.645.791
9. Liabilities arising from debt securities	116	47.550.600	45.320.600
10. Liabilities to employees	117	1.012.249	922.642
11. Liabilities for taxes, contributions and similar fees	118	737.771	1.402.238
12. Liabilities to share - holders	119
13. Liabilities for long-term assets held for sale	120
14. Other short - term liabilities	121	77.203.227	77.187.266
E) DEFFERED SETTLEMENTS OF CHARGES AND INCOME DEFERRED TO FUTURE PERIOD	122	670.502	266.739
F) TOTAL - CAPITAL AND LIABILITIES $(067+088+095+107+122)$	123	578.295.090	553.140.463
G) OFF-BALANCE RECORDS	124	9.276.687	9.718.413
APPENDIX to balance sheet (to be filled in by entrepreneur that prepares consolidated financial statements)
A) CAPITAL AND RESERVES
1. Attributed to equity holders of parent company	125
2. Attributable to minority interest	126

Note 1.: Appendix to the balance sheet to be filled by entrepreneurs that prepare consolidated financial statements.

Income statement

period 01.01.2018 to 30.09.2018

Position	AOP		Previous period		Current period
		Cummulative	Quarter	Cummulative	Quarter
1	2	3	4	5	6
I. OPERATING REVENUE (125+130)	125	267.921.760	80.271.539	194.770.627	68.837.912
1. Sales revenue with related parties with the Group	126	11.769.424	4.726.127	3.629.827	1.480.905
2. Sales revenue (other parties)	127	254.817.111	75.104.503	188.671.493	66.713.299
3. Revenue from the use of own products, goods and services	128	4.412	1.112	5.436	508
4. Other operating revenue with related parties with the Group	129
5. Other operating revenue (other parties)	130	1.330.813	439.797	2.463.871	643.200
II. OPERATING COSTS (132+133+137+141+142+143+146+153)	131	276.529.245	78.549.219	205.185.670	72.686.956
1. Changes in value of work in progress and finished products	132	-155.339	-1.193.661	-367.443	-921.562
2. Material costs (133 do 136)	133	246.186.577	71.179.144	182.548.449	66.016.051
a) Raw material and material costs	134	118.956.259	40.536.279	134.431.458	48.025.402
b) Cost of goods sold	135	108.549.608	24.606.366	30.547.784	10.006.698
c) Other external costs	136	18.680.710	6.036.499	17.569.207	7.983.951
3. Staff costs (138 do 140)	137	15.696.173	4.463.379	12.260.569	4.123.153
a) Net salaries and wages	138	9.469.015	2.782.463 1.025.709	7.746.261 2.877.548	2.618.687 958.350
b) Tax and contributions from salary expenses c) Contributions on gross salaries	139	3.931.903	655.207	1.636.760	546.116
	140	2.295.255
4. Depreciation and amortisation	141	8.193.885	2.659.010	7.802.605	2.610.080
5. Other costs	142	2.547.384	747.232	1.711.618	447.653
6. Impairment (144+145)	143	0	0	0	0
a) Impairment of long-term assets (financial assets excluded)	144				0
b) Impairment of short - term assets (financial assets excluded)	145
7. Provisions (147 do 152)	146				0
a) Provisions for pensions, severance pay and similar libabilities b) Provisions for tax liabilities	147
c) Provisions for ongoing legal cases	148 149
d) Provisions for costs of natural resources regeneration	150
e) Provisions for guarantees costs	151
f) Other provisions	152
8. Other operating costs	153	4.060.565	694.115	1.229.872	411.581
III. FINANCIAL INCOME (155 do 164)	154	3.138.452	734.371	1.491.460	366.035
1. Income from investment in shares in related parties within the Group	155
2. Income from investment in shares of entrepreneurs in whom the entity holds participating	156
3. Income from other long-term financial investment and loans granted to related parties	157	692.962	247.302	441.338	146.162
4. Other income arising from interests with related parties within the Group	158	6.580
5. Foreign exchange gains and similar financial income with related parties within the Group	159
6. Income from other long-term financial investment and loans	160	593.736	179.923	542.052	189.776
7. Other income arising from interests	161	130.625	107.682	47.896	28.091
8. Foreign exchange gains and similar financial income	162	575.293	143.927	460.174	2.006
9. Unrealized gains (income) from financial assets	163
10. Other financial income	164	1.139.256	55.537
IV. FINANCIAL EXPENSES (166 do 172)	165	20.942.137	6.559.290	1.172.404	336.751
1. Expenses arising from interests and similar expenses with related parties within the Group	166	893.420	381.288	515.661	0
2. Foreign exchange losses and similar financial expenses with related parties within the	167
3. Expenses arising from interests and similar expenses	168	19.290.786	5.801.289	328.719	166.818
4. Foreign exchange losses and similar financial expenses	169	726.992	376.068	306.199	169.669
5. Unrealized losses (expenses) on financial assets	170
6. Financial assets impairment (net)	171
7. Other financial expenses	172	30.939	645	21.825	264
V. SHARE IN PARTICIPATING INTERESTS PROFIT	173
VI. SHARE IN JOINT-VENTURE PROFIT	174
VII. SHARE IN PARTICIPATING INTERESTS LOSS	175
VIII. SHARE IN JOINT-VENTURE LOSS IX. TOTAL INCOME (125+164+173 + 174)	176	271.060.212	81.005.910	196.262.087	69.203.947
X. TOTAL EXPENSES (131+165+175 + 176)	177 178	297.471.382	85.108.509	206.358.074	73.023.707
XI. PROFIT OR LOSS BEFORE TAXES (177-178)	179	-26.411.170	-4.102.599	-10.095.987	-3.819.760
1. Profit before taxes (177-178)	180	0	0	0	0
2. Loss before taxes (178-177)	181	26.411.170	4.102.599	10.095.987	3.819.760
XII. PROFIT TAX	182
XIII. PROFIT OR LOSS FOR THE PERIOD (179-182)	183	-26.411.170	-4.102.599	-10.095.987	-3.819.760
1. Profit for the period (179-182)	184	0	0	0	0
2. Loss for the period (182-179)	185	26.411.170	4.102.599	10.095.987	3.819.760
APPENDIX to income statement (to be filled in by entrepreneur that prepares consolidated financial statements)
XIV. PROFIT OR LOSS FOR THE PERIOD
1. Attributed to equity holders of parent company	186
2. Attributable to minority interest	187
STATEMENT OF OTHER COMPREHENSIVE INCOME (only for IFRS adopters)
I. PROFIT OR LOSS FOR THE PERIOD	188	-26.411.170	-4.102.599	-10.095.987	-3.819.760
II. OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAXES (190 do 197)	189	0	0	0	0
1. Exchange differences on translation of foreign operations	190
2. Movements in revaluation reserves of long - term tangible and intangible assets	191
3. Profit or loss arising from re-evaluation of financial assets available for sale	192
4. Gains or losses arising on efficient cash flow hedging	193
5. Gains or losses arising on efficient hedge of a net investment in foreign countries	194
6. Share in other comprehensive income / loss of participating interest companies	195
7. Actuarial gains / losses on defined benefit plans	196
8. Other changes in equity non related to the owners III. TAX ON OTHER COMPREHENSIVE INCOME FOR THE PERIOD	197
IV. NET OTHER COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (158-166)	198 199	0	0	0	0
V. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (188+199)	200	-26.411.170	-4.102.599	-10.095.987	-3.819.760
APPENDIX to other comprehensive income statement (to be filled in by entrepreneur that prepares consolidated financial statements)
VI. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD
1. Attributed to equity holders of parent company	201
2. Attributed to minority interest	202

Cash flow statement - indirect method period 01.01.2018 to 30.09.2018

Company: GRANOLIO d.d.
Position	AOP	Previous	Current period
1	2	period 3	4
CASH FLOWS FROM OPERATING ACTIVITIES
1. Profit before tax	001	(26.411.619)	(10.095.987)
2. Adjustments (003 do 010)	002	27.098.060	7.562.315
a.) Depreciation and amortisation	003	8.193.886	7.802.605
b.) Gains and losses from the sale and impairment of long-term tangible and
intangible assets	004	(93.597)	8.874
c.) Gains and losses from the sale and unrealised gains and losses and
impairment of financial assets	005	(926.192)
d.) Interests and dividends income	006	(1.423.903)	(1.031.285)
e.) Interests expense	007	20.184.206	844.380
f.) Provisions	008
g .) Foreign exchange differences (unrealised)	009	(157.560)	(220.356)
h.) Other adjustments for non-cash transactions and unrealised gains and	010	1.321.220	158.097
losses
I. Cash flow increase or decrease before changes in the working capital (001 do 002)	011	686.441	(2.533.672)
3. Working capital changes ( 013 do 016)	012	23.592.634	3.661.742
a.) Increase or decrease in short term liabilities	013	15.260.864	13.125.942
b.) Increase or decrease in short term receivables	014	(5.884.782)	(5.993.201)
c.) Increase or decrease in inventories	015	14.216.552	(3.470.999)
d.) Other increase or decrease in the working capital	016
II. Cash from operations (011+012)	017	24.279.075	1.128.070
4. Interests paid	018	(8.244.652)	(328.719)
5. Income tax paid	019	(1.555.336)	(447.639)
A) NET CASH FLOW FROM OPERATING ACTIVITIES (017 do 019)	020	14.479.087	351.712
CASH FLOW FROM INVESTING ACTIVITIES
1. Cash inflows from sales of long-term tangible and intangible assets	021	80.917
2. Cash inflow from the sale of financial instruments	022
3. Interests receipts	023	1.081.315	280.147
4. Dividends receipts	024
5. Cash inflow from repayment of given loans and other borrowings	025	13.003.940	796.898
6. Other cash inflows from investing activities	026	795.584	10.215
III. Total cash inflows from investing activities (021 do 026)	027	14.961.756	1.087.260
1. Cash outflow for purchase of long-term tangible and intangible assets	028	(1.881.255)	(1.722.204)
2. Cash outflow for acquisition of financial instruments	029
3. Cash outflow for granting loans and other borrowings in the given period	030	(29.829.373)
4. Aquisition of associates decreased by the acquired cash	031
5. Other cash outflow for investing activities	032	(14.747)
IV. Total cash outflow for investing activities (028 do 032)	033	(31.725.375)	(1.722.204)
B) NET CASH FLOW FROM INVESTING ACTIVITIES (027+033)	034	(16.763.619)	(634.944)
CASH FLOW FROM FINANCING ACTIVITIES
1. Cash inflow from increase of the share (subscribed) capital	035
2. Cash inflow from issuing property and debt financial instruments	036
3. Cash proceeds from the credit principals, promissory notes, borrowings and other loans	037	98.403.467	780.000
4. Other proceeds from financial activities	038
V. Total cash inflows from financial activities (027 do 029)	039	98.403.467	780.000
1. Cash outflow for repayment of credit principals, promissory notes, borrowings and other loans	040	(90.493.518)	(729.000)
2. Cash outflow for dividends paid	041
3. Cash outflow for financial lease	042	(729.948)	(377.031)
4. Cash outflow for purchase of treasury shares and decrease of share (subscribed) capital	043
5. Other cash outflow for financial activities	044	(12.266.801)	(1.030.000)
VI. Total cash outflow for financial activities (031 do 035)	045	(103.490.267)	(2.136.031)
C) NET CASH FLOW FROM FINANCIAL ACTIVITIES	046	(5.086.800)	(1.356.031)
1. Unrealised foreign exchange differences in cash and cash equivalents	047
D) NET INCREASE OR DECREASE IN CASH FLOW (020+034+046+047)	048	(7.371.332)	(1.639.263)
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	049	9.300.282	2.800.724
F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	050	1.928.950	1.161.461

Statement of changes in equity Obrazac POD-PK 01.01.2018-30.09.2018

Obrazac POD-PK

Company: GRANOLIO D.D. ,OIB 59064993527
			Attributable to the equity holders of the parent									Minority
Position	AOP	Note no.	Share (subscribed) capital	Capital reserves	Legal reserves	Reserves for treasury shares	Treasury shares (deductible)	Statutory reserves	Other reserves	Revaluation reserve	Fair value of financial assets available for sale	Efficient part of cash flow hedging	Efficient part of hedging of a net investment	Retained earnings / accumulate d loss	Profit / loss for the current year	Total attributable to the equity holders of the parent	(non controlling) interest	Total capital and reserves
1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17 (4 do 7 - 8	18	19 (17+18)
Prior period
1. Balance 1 January of the prior period	01		19.016.430	84.186.547	283.227					61.561.956				3.783.114		2.506.535 172.137.809		172.137.809
2. Changes in accounting policies	02															0		0
3. Correction of errors	03															0		0
4. Balance 1 January of the prior period (AOP 01 do 03)	04		19.016.430	84.186.547	283.227		0	0	0	0 61.561.956	0	0		0 3.783.114		2.506.535 172.137.809		0 172.137.809
5. Profit / loss for the period	05															-26.411.620 -26.411.620		-26.411.620
6. Exchange differences on translation of foreign operations	06															0		0
7. Changes in revaluation reserves of long-term tangible and intangible assets	07									-2.237.874				2.237.874		0		0
8. Profit or loss from re-evaluation of financial assets available for sale	08															0		0
9. Gains or losses arising on efficient cash flow hedging	09															0		0
10. Gains or losses arising on efficient hedge of a net investment in foreign countries	10															0		0
11. Share in other comprehensive income / loss of participating interest companies	11															0		0
12. Actuarial gains / losses on defined benefit plans	12															0		0
13. Other changes in equity non related to the owners	13															0		0
14. Taxation recognised directly in equity	14									1.539.049				491.241		2.030.290		2.030.290
15. Increase/decrease in share (subscribed) capital (other than from reinvesting profit and other than arising from the pre-bankuptcy settlement procedure)	15															0		0
16. Increase of share (subscribed) capital by reinvesting profit	16															0		0
17. Increase of share (subscribed) capital arising from the pre-bankruptcy settlement procedure	17															0		0
18. Redemption of own (treasury) shares	18															0		0
19. Payment of share in profit / dividends	19															0		0
20. Other distribution of profits to the owners	20															0		0
21. Transfer to reserves by annual schedule	21				125.327										2.381.208 -2.506.535	0		0
22. Increase in reserves arising from the pre-bankruptcy settlement procedure	22															0		0
23. Balance 30 September of the prior period (04 do 22)	23		19.016.430	84.186.547	408.554		0	0	0	0 60.863.131	0	0			0 8.893.437 -26.411.620 147.756.479			0 147.756.479
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by entrepreneur that prepares financial statements in accordance to IFRS)
I. OTHER COMPREHENSIVE INCOME OF THE PRIOR PERIOD, NET OF TAX (AOP 06 to 14)	24		0	0		0	0	0	0	0 0	0	0	0	0	0	0	0	0
II. COMPREHENSIVE INCOME OR LOSS OF THE PRIOR PERIOD (AOP 05+24)	25		0	0		0	0	0	0	0 0	0	0	0	0	0	0	0	0
III. TRANSACTIONS WITH THE OWNERS OF THE PRIOR PERIOD RECOGNISED DIRECTLY IN EQUITY (AOP 15 to 22)	26		0	0		0	0	0	0	0 0	0	0	0	0	0	0	0	0

Statement of changes in equity Obrazac POD-PK 01.01.2018-30.09.2018

Company: GRANOLIO D.D. ,OIB 59064993527
										Attributable to the equity holders of the parent							Minority
Position	AOP	Note no.	Share (subscribed) capital	Capital reserves	Legal reserves	Reserves for treasury shares	Treasury shares (deductible)	Statutory reserves	Other reserves	Revaluation reserve	Fair value of financial assets available for	Efficient part of cash flow hedging	Efficient part of hedging of a net	Retained earnings / accumulate d loss	Profit / loss for the current year	Total attributable to the equity holders of	(non controlling) interest	Total capital and reserves
1	2	3	4	5	6	7	8	9	10	11	sale 12	13	investment 14	15	16	the parent 17 (4 do 7 - 8	18	19 (17+18)
Current period
1. Balance 1 January of the current period	27		19.016.430	84.186.547	408.554	800.000				60.117.173					9.803.142 -198.186.628 -23.854.782			-23.854.782
2. Changes in accounting policies	28															0		0
3. Correction of errors	29															0		0
4. Balance 1 January of the current period (AOP 27 do 29)	30		19.016.430	84.186.547	283.227	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 for the period	31															-10.095.987 -10.095.987		-10.095.987
6. Exchange differences on translation of foreign operations	32															0		0
7. Changes in revaluation reserves of long-term tangible and intangible assets	33									-2.245.547				2.245.547		0		0
8. Profit or loss from re-evaluation of financial assets available for sale	34															0		0
9. Gains or losses arising on efficient cash flow hedging	35															0		0
10. Gains or losses arising on efficient hedge of a net investment in foreign countries	36															0		0
11. Share in other comprehensive income / loss of participating interest companies	37															0		0
12. Actuarial gains / losses on defined benefit plans	38															0		0
13. Other changes in equity non related to the owners	39			9.260						679.363				15.343.681		16.032.304		16.032.304
14. Taxation recognised directly in equity	40									-122.285				492.925		370.640		370.640
15. Increase/decrease in share (subscribed) capital (other than from reinvesting profit and other than arising from the pre-bankuptcy settlement procedure)	41															0		0
16. Increase of share (subscribed) capital by reinvesting profit	42															0		0
17. Increase of share (subscribed) capital arising from the pre-bankruptcy settlement procedure	43															0		0
18. Redemption of own (treasury) shares	44															0		0
19. Payment of share in profit / dividends	45															0		0
20. Other distribution of profits to the owners	46															0		0
21. Transfer to reserves by annual schedule	47														-198.186.628 198.186.628	0		0
22. Increase in reserves arising from the pre-bankruptcy settlement procedure	48															0		0
23. Balance 30 September of the prior period (04 do 22)	49		19.016.430	84.195.807	283.227	800.000	0	0		0 58.428.704	0	0			0 -170.301.333 -10.095.987 -17.547.825			0 -17.547.825
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by entrepreneur that prepares financial statements in accordance to IFRS)
I. OTHER COMPREHENSIVE INCOME OF THE CURRENT PERIOD, NET OF TAX (AOP 32 to 40)	50		0	0	0	0	0	0		0 0	0	0	0	0	0	0	0	0
II. COMPREHENSIVE INCOME OR LOSS OF THE CURRENT PERIOD (AOP 31 + 50)	51		0	0	0	0	0	0		0 0	0	0	0	0	0	0	0	0
III. TRANSACTIONS WITH THE OWNERS OF THE CURRENT PERIOD RECOGNISED DIRECTLY IN EQUITY (AOP 41 to 48)	52		0	0	0	0	0	0		0 0	0	0	0	0	0	0	0	0

Budmanijeva 5, HR-10000 Zagreb tel.: +385 1 6320 200; faks: +385 1 6320 222; e-mail: granolio@granolio.hr; http://www.granolio.hr

In Zagreb, 30 October 2018

Pursuant to the article 407. to 410. of the Capital market Law (Official Gazette 88/08, 146/08 and 74/09) the President of the Management Board of the Company Granolio d.d., Budmanijeva 5, Zagreb provides:

MANAGEMENT BOARD'S STATEMENT OF LIABILITY

The separate and consolidated financial statements of Granolio d.d. have been prepared pursuant to the International Financial Reporting Standards (IFRS) and Croatian Accounting Law.

The non-consolidated and consolidated financial statements for the period from 1 January 2018 till 30 September 2018 present complete and fair view of assets and liabilities, profit and loss, financial position and operations of the Company.

The management report for the nine months period ended 30 September 2018 presents true and fair presentation of development and results of the Company's operations with description of significant risks and uncertainties the Company is facing.

President of the Management Board

Hrvoje Filipović

4 d. Rudmanijeva š Zagrab

Contact: Granolio d.d. Budmanijeva 5 10 000 Zagreb Hrvatska

DNV-GL

$NMSG1$

Tel: +385 1 6320 200 e-mail: trzistekapitala@granolio.hr

MB: 1244272; OIB: 59064993527; IBAN HR6024020061100063532 Erste&Steiermarkische bank d.d. Rijeka, IBAN HR1423400091110416692 Privredna banka Zagreb, IBAN HR5123900011100014261 Hrvatska poštanska banka Zagreb; temeljni kapitaľ: 19.016.430,00 kn uplaćen u cijelosti podijeljen na 1.901.643 redovnih dionica serije A nominalnog iznosa 10,00 kn; tvrtka je upisana u Trgovačkom sudu u Zagrebu, MBS: 080111595; predsjednik Uprave: Hrvoje Filipović, članovi Uprave: Vladimir Kalčić i Drago Šurina, predsjednik Nadzornog odbora: Franjo Filipović

Budmanijeva 5, HR-10000 Zagreb tel.: +385 | 6320 200; faks: +385 | 6320 222; e-mail: granolio@granolio.hr; http://www.granolio.hr

Zagreb, 30 October 2018

Statement of Executives responsible for preparing financial statements for the nine months period

Pursuant to the current Croatian Accounting Act (Official Gazzette 109/07), the Management Board is required to ensure that the financial statements of Granolio d.d. for each financial period are prepared in accordance with the International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB) and that they give a true and fair view of the financial position and results of the Company's operations in the given period.

To the best of our knowledge, the complete shorten set of unaudited financial statements for the nine months period give a true presentation of the Company's position as at 30 September 2018.

Reports prepared by:

Jasenka Kordić Accounting Director

MB: 1244272; OIB: 59064993527; IBAN HR6024020061100063532 Erste&Steiermarkische bank d.d. Rijeka, IBAN HR1423400091110416692 Privredna banka Zagreb, IBAN HR5123900011100014261 Hrvatska poštanska banka Zagreb; temeljni kapitaľ: 19.016.430,00 kn uplaćen u cijelosti podijeljen na 1.901.643 redovnih dionica serije A nominalnog iznosa 10,00 kn; tvrtka je upisana u Trgovačkom sudu u Zagrebu, MBS: 080111595; predsjednik Uprave: Hrvoje Filipović, članovi Uprave: Vladimir Kalčić i Drago Šurina, predsjednik Nadzornog odbora: Franjo Filipović