Granolio d.d.

Quarterly Report • Apr 30, 2019

Unconsolidated financial results for the three months period ended 31 March 2019 (unaudited)

General information on Granolio d.d.

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

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

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

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

Subsidiaries

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

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

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

Ownership in subsidiaries is presented in the organizational chart below:

Significant business events in the accounting period

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

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

Company's financial indicators for the three months of 2019
-------------------------------------------------------------	--

Granolio d.d.	1-3 2019	1-3 2018	change
Operating income	55.881	60.911	(5.029)	(8%)
Operating expenses	63.098	63.920	(822)	(1%)
EBIT	(7.217)	(3.009)	(4.207)	140%
EBIT margin	-13%	-5%
EBITDA	(4.567)	(393)	(4.174)	1062%
EBITDA margin	-8%	-1%
Net financial result	(561)	137	(698)	(510%)
Net result for the period	(7.778)	(2.872)	(4.906)	(171%)

*EBITDA= EBIT + depreciation + impairment expenses

In the first quarter 2019 the Company has made slightly lower operating result (EBIT) compared to the same period last year. The nature of Company's business is that the first quarter is always less favourable than the rest of the year. Besides that, in 2019 Easter, that affect sales levels of flour, fell into the second quarter of the year while in 2018 it fell into the first quarter. By the end of the year, operating result is expected to improve.

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

In thousands HRK
Granolio d.d.	31.3.2019	31.12.2018	change
Net asset (capital and reserves)	46.896	54.480	(7.584)	(14%)
Total debt to financial institutions	431.503	431.829	(326)	(0%)
Cash and cash equivalents	1.138	3.574	(2.436)	(68%)
Loans given, deposits etc.*	36.121	36.328	(207)	(1%)
Net debt	394.244	391.927	2.317	1%
Net debt/EBITDA		135,85
EBITDA for the last 12 months	(1.289)	2.885	(4.174)	(145%)

*Loans given, securities and deposits

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

The Company monitors its business operations through four business segments:

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

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

Revenue made by sales of flour is lower than revenue made in the same period last year. Since the sale of flour is affected by feasts and tourist season, this decrease was expected. In 2019, Easter fell in the secoond quarter of the year while in 2018 it fell into the first quarter.

Employees

In the three months period 2019 the Company employed 156 employees based on man-hour basis (in the three months period 2018: 147 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 three months period of 2019.

Annex 1
		ISSUER'S GENERAL DATA
Reporting period:		1.1.2019	to	31.3.2019
Year:		2019
Quarter:		1.
		Quarterly financial statements
Registration number (MB):	01244272		Issuer's home Member State code:	Hrvatska
Entity's registration number (MBS):	080111595
Personal identification number (OIB):	59064993527		LEI:	213800O3Z6ZSDBAKG321
Institution code:	15989
Name of the issuer: Granolio d.d.
Postcode and town:	10000		Zagreb
Street and house number: Budmanijeva 5
	E-mail address: granolio@granolio.hr
Web address: www.granolio.hr
Number of employees (end of the reporting	157
Consolidated report:	KN	(KN-not consolidated/KD-consolidated)		KN	KD
Audited:	RN	(RN-not audited/RD-audited)		RN	RD
Names of subsidiaries (according to IFRS):			Registered office:		MB:
					Yes No
Bookkeeping firm:	No	(Yes/No)		(name of the bookkeeping firm)
Contact person: Jasenka Kordić
Telephone: 01/6320-261		(only name and surname of the contact person)
	E-mail address: jkordic@granolio.hr
	Audit firm: DELOITTE d.o.o.
Certified auditor: VANJA VLAK	(name of the audit firm)
	(name and surname)

BALANCE SHEET balance as at 31.03.2019

ADP code Last day of the preceding business year At the reporting date of the current period 2 3 4 001 0 0 002 376.229.862 352.374.767 003 122.614.230 122.432.281 004 0 0 005 120.250.063 120.484.614 006 0 0 007 0 0 008 0 0 009 2.364.167 1.947.667 010 151.119.938 149.446.792 011 9.155.420 9.155.420 012 123.898.444 122.871.920 013 12.652.618 12.139.968 014 694.954 531.962 015 0 0 016 0 0 017 24.225 24.225 018 79.277 108.297 019 4.615.000 4.615.000 020 102.480.694 80.480.694 021 92.427.762 70.427.762 022 0 0 023 0 0 024 0 0 025 0 0 026 0 0 027 0 0 028 193.062 193.062 029 0 0 030 9.859.870 9.859.870 031 15.000 15.000 032 0 0 033 0 0 034 0 0 035 15.000 15.000 036 0 0 037 142.661.088 163.444.421 038 10.075.836 21.314.776 039 5.704.493 9.676.035 040 181.223 184.370 041 1.608.644 3.349.787 042 2.581.476 8.104.584 043 0 0 044 0 0 045 0 0 046 92.875.534 105.063.442 047 8.611.329 8.251.554 048 0 0 049 55.445.225 49.680.686 050 0 0 051 670.540 2.738.267 052 28.148.440 44.392.935 053 36.135.368 35.928.414 054 0 0 055 0 0 056 22.935.460 22.744.460 057 0 0 058 0 0 059 0 0 060 178.281 178.281 061 13.021.627 13.005.673 062 0 0 063 3.574.350 1.137.789 064 504.406 533.291 065 519.395.356 516.352.479 066 9.810.363 9.849.778 II RECEIVABLES (ADP 047 to 052) 1 Receivables from undertakings within the group 2 Receivables from companies linked by virtue of participating interests 3 Customer receivables 7 Investments in securities 8 Loans, deposits, etc. given 9 Other financial assets III CURRENT FINANCIAL ASSETS (ADP 054 to 062) 1 Investments in holdings (shares) of undertakings within the group 2 Investments in other securities of undertakings within the group 3 Loans, deposits, etc. to undertakings within the group 4 Receivables from employees and members of the undertaking 5 Receivables from government and other institutions 6 Other receivables 1 Research and development C) CURRENT ASSETS (ADP 038+046+053+063) I INVENTORIES (ADP 039 to 045) 1 Raw materials and consumables 6 Fixed assets held for sale 7 Biological assets 7 Investments in securities 8 Loans, deposits, etc. given 9 Other investments accounted for using the equity method 10 Other fixed financial assets 5 Advances for inventories 2 Work in progress IV RECEIVABLES (ADP 032 to 035) 1 Receivables from undertakings within the group 1 Investments in holdings (shares) of undertakings within the group 2 Investments in other securities of undertakings within the group 3 Loans, deposits, etc. to undertakings within the group 4. Investments in holdings (shares) of companies linked by virtue of participating interests 1 Land 2 Buildings 3 Plant and equipment 4 Tools, working inventory and transportation assets 2 Receivables from companies linked by virtue of participating interests 3 Customer receivables in HRK 8 Other tangible assets 9 Investment property III FIXED FINANCIAL ASSETS (ADP 021 to 030) 5 Investment in other securities of companies linked by virtue of participating interests 6 Loans, deposits etc. to companies linked by virtue of participating interests 2 Concessions, patents, licences, trademarks, software and other rights 3 Goodwill 4 Advances for the purchase of intangible assets 5 Intangible assets in preparation 5 Biological assets 6 Advances for the purchase of tangible assets 7 Tangible assets in preparation Submitter:Granolio d.d. 6 Other intangible assets II TANGIBLE ASSETS (ADP 011 to 019) 1 Item A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID B) FIXED ASSETS (ADP 003+010+020+031+036) I INTANGIBLE ASSETS (ADP 004 to 009) 4 Other receivables V DEFERRED TAX ASSETS 3 Finished goods 4 Merchandise 4 Investments in holdings (shares) of companies linked by virtue of participating interests 5 Investment in other securities of companies linked by virtue of participating interests 6 Loans, deposits etc. to companies linked by virtue of participating interests IV CASH AT BANK AND IN HAND D ) PREPAID EXPENSES AND ACCRUED INCOME E) TOTAL ASSETS (ADP 001+002+037+064) OFF-BALANCE SHEET ITEMS

LIABILITIES
A) CAPITAL AND RESERVES (ADP 068 to	067	206.927.720	46.896.382
I INITIAL (SUBSCRIBED) CAPITAL	068	19.016.430	19.016.430
II CAPITAL RESERVES	069	84.195.807	84.195.807
III RESERVES FROM PROFIT (ADP 071+072-073+074+075)	070	1.208.554	1.208.554
1 Legal reserves	071	408.554	408.554
2 Reserves for treasury shares	072	800.000	800.000
3 Treasury shares and holdings (deductible item)	073	0	0
4 Statutory reserves	074	0	0
5 Other reserves	075	0	0
IV REVALUATION RESERVES	076	57.678.142	56.932.184
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	-16.938.604	-106.678.474
1 Retained profit	082	0	0
2 Loss brought forward	083	16.938.604	106.678.474
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 085-086)	084	61.767.391	-7.778.119
1 Profit for the business year	085	61.767.391	0
2 Loss for the business year	086	0	7.778.119
VIII MINORITY (NON-CONTROLLING) INTEREST	087	0	0
B) PROVISIONS (ADP 089 to 094)	088	0	0
1 Provisions for pensions, termination benefits and similar obligations	089	0	0
2 Provisions for tax liabilities	090	0	0
3 Provisions for ongoing legal cases	091	0	0
4 Provisions for renewal of natural resources	092	0	0
5 Provisions for warranty obligations	093	0	0
6 Other provisions	094	0	0
C) LONG-TERM LIABILITIES (ADP 096 to 106)	095	427.778.487	424.119.432
1 Liabilities to undertakings within the group	096	0	1.455
2 Liabilities for loans, deposits, etc. of undertakings within the group	097	0	0
3 Liabilities to companies linked by virtue of participating interests	098	0	0
4 Liabilities for loans, deposits etc. of companies linked by virtue of	099	0	0
participating interests
5 Liabilities for loans, deposits etc.	100	0	0
6 Liabilities to banks and other financial institutions	101	363.368.612	363.570.781
7 Liabilities for advance payments	102	0	0
8 Liabilities to suppliers 9 Liabilities for securities	103	51.748.819	48.050.898 0
10 Other long-term liabilities	104 105	0 0	0
11 Deferred tax liability	106	12.661.056	12.496.298
D) SHORT-TERM LIABILITIES (ADP 108 to 121)	107	36.845.258	45.123.293
1 Liabilities to undertakings within the group	108	27.456	27.792
2 Liabilities for loans, deposits, etc. of undertakings within the group	109	0	0
			0
3 Liabilities to companies linked by virtue of participating interests 4 Liabilities for loans, deposits etc. of companies linked by virtue of	110	0
participating interests	111	0	0
5 Liabilities for loans, deposits etc.	112	0	0
6 Liabilities to banks and other financial institutions	113	451.151	412.320
7 Liabilities for advance payments	114	668.221	416.991
8 Liabilities to suppliers	115	24.239.849	34.169.149
9 Liabilities for securities	116	8.870.000	8.380.000
10 Liabilities to employees	117	938.475	944.657
11 Taxes, contributions and similar liabilities	118	1.645.410	511.505
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	4.696	260.879
E) ACCRUALS AND DEFERRED INCOME	122	291.301	213.378
F) TOTAL – LIABILITIES (ADP 067+088+095+107+122)	123	671.842.766	516.352.485
G) OFF-BALANCE SHEET ITEMS	124	9.810.363	9.849.778

for the period 01.01.2019 to 31.03.2019 STATEMENT OF PROFIT OR LOSS

in HRK

Submitter: Granolio d.d.
	ADP	Same period of the previous year		Current period
Item	code	Cumulative	Quarter	Cumulative	Quarter
1	2	3	4	5	6
I OPERATING INCOME (ADP 126 to 130)	125	60.910.772	60.910.772	55.881.329	55.881.329
1 Income from sales with undertakings within the group	126	1.009.862	1.009.862	1.572.175	1.572.175
2 Income from sales (outside group)	127	58.801.146	58.801.146	53.696.289	53.696.289
3 Income from the use of own products, goods and services	128	2.013	2.013	9.684	9.684
4 Other operating income with undertakings within the group	129	0	0	0	0
5 Other operating income (outside the group)	130	1.097.751	1.097.751	603.181	603.181
II OPERATING EXPENSES (ADP 132+133+137+141+142+143+146+153)	131	63.920.030	63.920.030	62.598.649	62.598.649
1 Changes in inventories of work in progress and finished goods 2 Material costs (ADP 134 to 136)	132 133	-365.420 56.552.038	-365.420 56.552.038	-1.756.307 56.844.082	-1.756.307 56.844.082
a) Costs of raw materials and consumables	134	44.066.716	44.066.716	42.511.171	42.511.171
b) Costs of goods sold	135	7.816.860	7.816.860	10.335.205	10.335.205
c) Other external costs	136	4.668.462	4.668.462	3.997.706	3.997.706
3 Staff costs (ADP 138 to 140)	137	4.087.281	4.087.281	4.274.382	4.274.382
a) Net salaries and wages	138	2.559.215	2.559.215	2.692.604	2.692.604
b) Tax and contributions from salary costs	139	973.998	973.998	1.043.360	1.043.360
c) Contributions on salaries	140	554.068	554.068	538.418	538.418
4 Depreciation	141	2.615.875	2.615.875	2.649.067	2.649.067
5 Other costs			619.041	587.425	587.425
6 Value adjustments (ADP 144+145)	142	619.041	0	0	0
a) fixed assets other than financial assets	143	0	0	0	0
b) current assets other than financial assets	144	0	0	0	0
	145	0	0	0	0
7 Provisions (ADP 147 to 152)	146	0	0	0	0
a) Provisions for pensions, termination benefits and similar obligations	147	0
b) Provisions for tax liabilities	148	0	0	0	0
c) Provisions for ongoing legal cases	149	0	0	0	0
d) Provisions for renewal of natural resources	150	0	0	0	0
e) Provisions for warranty obligations	151	0	0	0	0
f) Other provisions	152	0	0	0	0
8 Other operating expenses	153	411.215	411.215	0	0
III FINANCIAL INCOME (ADP 155 to 164) 1 Income from investments in holdings (shares) of undertakings within	154	628.131	628.131	142.335	142.335
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 undertakings within the group	157	150.603	150.603	0	0
4 Other interest income from operations with undertakings within the group	158	0	0	0	0
5 Exchange rate differences and other financial income from operations	159	0	0	0	0
with undertakings within the group			176.026	122.351	122.351
6 Income from other long-term financial investments and loans	160	176.026	12.351	1.827	1.827
7 Other interest income	161	12.351	289.151	18.157	18.157
8 Exchange rate differences and other financial income	162	289.151	0	0	0
9 Unrealised gains (income) from financial assets 10 Other financial income	163	0	0	0	0
IV FINANCIAL EXPENSES (ADP 166 to 172)	164	0	491.140	703.798	703.798
1 Interest expenses and similar expenses with undertakings within the	165 166	491.140 387.124	387.124	0	0
group 2 Exchange rate differences and other expenses from operations with
undertakings within the group	167	0	0	0	0
3 Interest expenses and similar expenses	168	17.392	17.392	674.977	674.977
4 Exchange rate differences and other expenses	169	86.572	86.572	28.694	28.694
5 Unrealised losses (expenses) from financial assets	170	0	0	0	0
6 Value adjustments of financial assets (net)	171	0	0	0	0
7 Other financial expenses	172	52	52	127	127
V SHARE IN PROFIT FROM UNDERTAKINGS LINKED BY VRITUE OF	173	0	0	0	0
PARTICIPATING INTERESTS
VI SHARE IN PROFIT FROM JOINT VENTURES	174	0	0	0	0
VII SHARE IN LOSS OF COMPANIES LINKED BY VIRTUE OF	175	0	0	0	0
PARTICIPATING INTEREST
VIII SHARE IN LOSS OF JOINT VENTURES	176	0	0	0	0
IX TOTAL INCOME (ADP 125+154+173 + 174)	177	61.538.903	61.538.903	56.023.664	56.023.664
X TOTAL EXPENDITURE (ADP 131+165+175 + 176)	178	64.411.170	64.411.170	63.302.447	63.302.447
XI PRE-TAX PROFIT OR LOSS (ADP 177-178)	179	-2.872.267	-2.872.267	-7.278.783	-7.278.783
1 Pre-tax profit (ADP 177-178)	180	0	0	0	0

2 Pre-tax loss (ADP 178-177)	181	-2.872.267	-2.872.267	-7.278.783	-7.278.783
XII INCOME TAX	182	0	0	0	0
XIII PROFIT OR LOSS FOR THE PERIOD (ADP 179-182)	183	-2.872.267	-2.872.267	-7.278.783	-7.278.783
1 Profit for the period (ADP 179-182)	184	0	0	0	0
2 Loss for the period (ADP 182-179)	185	-2.872.267	-2.872.267	-7.278.783	-7.278.783
DISCONTINUED OPERATIONS (to be filled in by undertakings subject to IFRS only with discontinued operations)
XIV PRE-TAX PROFIT OR LOSS OF DISCONTINUED OPERATIONS	186	0	0	0	0
(ADP 187-188)
1 Pre-tax profit from discontinued operations	187	0	0	0	0
2 Pre-tax loss on discontinued operations	188	0	0	0	0
XV INCOME TAX OF DISCONTINUED OPERATIONS	189	0	0	0	0
1 Discontinued operations profit for the period (ADP 186-189)	190	0	0	0	0
2 Discontinued operations loss for the period (ADP 189-186)	191	0	0	0	0
TOTAL OPERATIONS (to be filled in only by undertakings subject to IFRS with discontinued operations)			0	0	0
XVI PRE-TAX PROFIT OR LOSS (ADP 179+186)	192	0	0	0	0
1 Pre-tax profit (ADP 192) 2 Pre-tax loss (ADP 192)	193	0	0	0	0
XVII INCOME TAX (ADP 182+189)	194 195	0	0	0	0
XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 192-195)	196	0 0	0	0	0
1 Profit for the period (ADP 192-195)	197	0	0	0	0
2 Loss for the period (ADP 195-192)	198	0	0	0	0
APPENDIX to the P&L (to be filled in by undertakings that draw up consolidated annual financial statements)
XIX PROFIT OR LOSS FOR THE PERIOD (ADP 200+201)	199	0	0	0	0
1 Attributable to owners of the parent	200	0	0	0	0
2 Attributable to minority (non-controlling) interest	201	0	0	0
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	202	-2.872.267	-2.872.267	-7.278.783	-7.278.783
(ADP 204 to 211)	203	0	0	0
1 Exchange rate differences from translation of foreign operations	204	0	0	0
2 Changes in revaluation reserves of fixed tangible and intangible assets	205	0	0	0
3 Profit or loss arising from subsequent measurement of financial assets available for sale	206	0	0	0
4 Profit or loss arising from effective cash flow hedging	207	0	0	0
5 Profit or loss arising from effective hedge of a net investment in a foreign operation	208	0	0	0	0 0 0 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
IV NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 203-212)	213	0	0	0
V COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 202+213)	214	-2.872.267	-2.872.267	-7.278.783	-7.278.783
APPENDIX to the Statement on comprehensive income (to be filled in by undertakings that draw up consolidated statements)
VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 216+217)	215	0	0	0	0 0 0
1 Attributable to owners of the parent	216	0	0	0	0

STATEMENT OF CASH FLOWS - indirect method for the period 01.01.2019 to 31.03.2019

Submitter: Granolio d.d.			in HRK
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	-2.872.267	-7.778.119
2 Adjustments (ADP 003 to 010):	002	2.014.368	3.225.642
a) Depreciation	003	2.615.875	2.649.067
b) Gains and losses from sale and value adjustment of fixed tangible and intangible assets	004	-113.597	-5.000
c) Gains and losses from sale and unrealised gains and losses and value
adjustment of financial assets	005	0	0
d) Interest and dividend income	006	-338.979	-124.177
e) Interest expenses f) Provisions	007 008	404.515 0	674.977 0
g) Exchange rate differences (unrealised)	009	-553.446	0
h) Other adjustments for non-cash transactions and unrealised gains and
losses	010	0	30.775
I Cash flow increase or decrease before changes in working capital (ADP 001+002)	011	-857.899	-4.552.477
3 Changes in the working capital (ADP 013 to 016)	012	-1.912.936	-18.408.167
a) Increase or decrease in short-term liabilities	013	-1.528.951	5.086.070
b) Increase or decrease in short-term receivables	014	-1.983.358	-12.255.297
c) Increase or decrease in inventories	015	1.599.373	-11.238.940
d) Other increase or decrease in working capital	016	0	0
II Cash from operations (ADP 011+012)	017	-2.770.835	-22.960.644
4 Interest paid	018	-24.934	-436.747
5 Income tax paid	019	494.040	0
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019)	020	-2.301.729	-23.397.391
Cash flow from investment activities
1 Cash receipts from sales of fixed tangible and intangible assets	021	80.917	0
2 Cash receipts from sales of financial instruments	022	0	0
3 Interest received	023	35.254	167.681
4 Dividends received	024	0	0
5 Cash receipts from repayment of loans and deposits	025	-765.003	1.306.954
6 Other cash receipts from investment activities	026	0	22.000.000
III Total cash receipts from investment activities (ADP 021 to 026)	027	-648.832	23.474.635
1 Cash payments for the purchase of fixed tangible and intangible assets	028	-555.758	-793.973
2 Cash payments for the acquisition of financial instruments	029	0	0
3 Cash payments for loans and deposits for the period	030	0	-1.100.000
4 Acquisition of a subsidiary, net of cash acquired 5 Other cash payments from investment activities	031	0	0
	032	0	0
IV Total cash payments from investment activities (ADP 028 to 032)	033	-555.758	-1.893.973
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033)	034	-1.204.590	21.580.662
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	2.424.491	0
4 Other cash receipts from financing activities	038	0	0
V Total cash receipts from financing activities (ADP 035 to 038)	039	2.424.491	0
1 Cash payments for the repayment of credit principals, loans and other borrowings and debt financial instruments	040	-729.000	0
2 Cash payments for dividends	041	0	0
3 Cash payments for finance lease	042	-124.741	-129.833
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	0	-490.000
VI Total cash payments from financing activities (ADP 040 to 044)	045	-853.741	-619.833
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045)	046	1.570.750	-619.833
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	-1.935.569	-2.436.562
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	049	2.800.724	3.574.350
F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD(ADP 048+049)	050	865.155	1.137.788

STATEMENT OF CHANGES IN EQUITY

for the period from 1.1.2018	to 31.3.2019															in HRK
Item	ADP code	Initial (subscribed) capital	Capital reserves	Legal reserves	Reserves for treasury shares	Treasury shares and holdings	Statutory reserves Other reserves		Attributable to owners of the parent Revaluation reserves	Fair value of financial assets	Cash flow hedge - effective portion	Hedge of a net investment in a foreign operation -	Retained profit / loss brought	Profit/loss for the business year	Total attributable to owners of the parent	Minority (non controlling) interest	Total capital and reserves
1	2	3	4	5	6	(deductible item) 7	8	9	10	available for sale 11	12	effective portion 13	forward 14	15	16 (3 to 6 - 7 + 8 to 15)	17	18 (16+17)
Previous period 1 Balance on the first day of the previous business year	01	19.016.430	84.186.547	408.554	800.000	0	0	0	60.117.173		0 0	0	9.803.142	-198.186.628	-23.854.782	0	-23.854.782
2 Changes in accounting policies	02	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
4 Balance on the first day of the previous business year (restated) (ADP 01 to 03)	04	19.016.430	84.186.547	408.554	800.000	0	0	0	60.117.173		0 0	0	9.803.142	-198.186.628	-23.854.782	0	-23.854.782
5 Profit/loss of the period	05	0	0	0	0	0	0	0	0		0 0	0		0 61.767.391	61.767.391	0	61.767.391
6 Exchange rate differences from translation of foreign operations	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	-2.996.109		0 0	0	2.996.109	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 14 Tax on transactions recognised directly in equity	13 14	0 0	9.260 0	0 0	0 0	0 0	0 0	0 0	679.363 -122.285		0 0 0 0	0 0	15.343.681 657.682	0 0	16.032.304 535.397	0 0	16.032.304 535.397
15 Increase/decrease in initial (subscribed) capital (other than from reinvesting profit 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 19 Payment of share in profit/dividend	18 19	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	20	0	0	0	0	0	0	0	0		0 0	0		0 0	0	0	0
21 Transfer to reserves according to the annual schedule	21	0	0	0	0	0	0	0	0		0 0	0	-198.186.628	198.186.628	0	0	0
22 Increase in reserves arising from the pre-bankruptcy settlement procedure 23 Balance on the last day of the previous business year reporting period (04 to	22 23	0	0 84.195.807	0 408.554	0 800.000	0 0	0 0	0 0	0 57.678.142		0 0 0 0	0 0	-169.386.014	0 0 61.767.391	0 54.480.310	0 0	0 54.480.310
22) APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the IFRS)		19.016.430
I OTHER COMPREHENSIVE INCOME OF THE PREVIOUS PERIOD, NET OF TAX (ADP 06 to 14)	24	0	9.260	0	0	0	0	0	-2.439.031		0 0	0	18.997.472	0	16.567.701	0	16.567.701
II COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD (ADP 05+24)	25	0	9.260	0	0	0	0	0	-2.439.031		0 0	0	18.997.472	61.767.391	78.335.092	0	78.335.092
III TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD RECOGNISED DIRECTLY IN EQUITY (ADP 15 to 22)	26	0	0	0	0	0	0	0	0		0 0	0	-198.186.628	198.186.628	0	0	0
Current period
1 Balance on the first day of the current business year 2 Changes in accounting policies	27 28	19.016.430 0	84.195.807 0	408.554 0	800.000 0	0 0	0 0	0 0	57.678.142 0		0 0 0 0	0 0	-169.386.014	61.767.391 0 0	54.480.310 0	0 0	54.480.310 0
3 Correction of errors	29	0	0	0	0	0	0	0	0		0 0	0		0 0	0	0	0
4 Balance on the first day of the current business year (restated) (ADP 27 to 29)	30	19.016.430	84.195.807	408.554	800.000	0	0	0	57.678.142		0 0	0	-169.386.014	61.767.391	54.480.310	0	54.480.310
5 Profit/loss of the period	31	0	0	0	0	0	0	0	0		0 0	0		0 0	0	0	0
6 Exchange rate differences from translation of foreign operations	32	0	0	0	0	0	0	0	0		0 0	0		0 0	0	0	0
7 Changes in revaluation reserves of fixed tangible and intangible assets	33	0	0	0	0	0	0	0	-745.958		0 0	0	745.958	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	37		0	0	0	0	0	0	0		0 0	0		0 0
participating interests 12 Actuarial gains/losses on the defined benefit obligation	38	0 0	0	0	0	0	0	0	0		0 0	0		0 0	0 0	0 0	0 0
13 Other changes in equity unrelated to owners	39	0	0	0	0	0	0	0	0		0 0	0	29.433	0	29.433	0	29.433
14 Tax on transactions recognised directly in equity 15 Increase/decrease in initial (subscribed) capital (other than from reinvesting profit	40 41	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0		0 0 0 0	0 0	164.758	0 0 0	164.758 0	0 0	164.758 0
and other than arising from the pre-bankruptcy settlement procedure) 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 18 Redemption of treasury shares/holdings	43 44	0	0 0	0 0	0 0	0 0	0 0	0 0	0 0		0 0 0 0	0 0		0 0 0 0	0	0	0
19 Payment of share in profit/dividend	45	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 22 Increase in reserves arising from the pre-bankruptcy settlement procedure	47 48	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
23 Balance on the last day of the current business year reporting period (ADP			84.195.807	408.554	800.000	0	0	0	56.932.184		0 0	0	-168.445.865	61.767.391	54.674.501	0	54.674.501
30 to 48)	49	19.016.430
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 (ADP 32 to 40)	50	0	0	0	0	0	0	0	-745.958		0 0	0	940.149	0	194.191	0	194.191
II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP 31+50)	51	0	0	0	0	0	0	0	-745.958		0 0	0	940.149	0	194.191	0	194.191
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		0 0	0	0	0

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

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

Reporting period: 01.01.2019.- 31.03.2019.

Notes to financial statements for quarterly periods include:

The same accounting policies are applied while drawing up financial statements for the quarterly reporting period as in the latest annual financial statements.

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