Granolio d.d.

Quarterly Report • Apr 30, 2019

Consolidated 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.

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:

Granolio d.d.
Zdenačka farma d.o.o.	Zdenka mliječni proizvodi
100%	d.o.o. 50%

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 three months period of 2019

			In thousands of HRK
	1.1.- 4.3.2019	1-3 2018	change
Operating income	98.495	103.028	(4.533)	(4%)
Operating expenses	(105.661)	(106.384)	723	1%
EBIT	(7.166)	(3.356)	(3.810)	114%
EBIT margin	-7%	(3%)
EBITDA	193	4.383	(4.190)	(96%)
EBITDA margin	0%	4%
Net financial result	(1.287)	159	(1.446)	909%
Net result for the period	(8.453)	(3.197)	(5.256)	(164%)
Attributable to the Group	(8.258)	(2.763)	(5.495)	(199%)
Non-controlling interest	(195)	(434)	239	55%

Net financial result represents the difference between financial revenues and financial expenses. In the first quarter 2019, financial expense is greater due to holding company starting to account for an interest on the financial debt which is part of the pre-bankruptcy settlement.

Financial indicators In thousands of HRK
	31.3.2019	31.12.2018	change
Net assets (Capital and reserves)*	54.306	104.806	(50.500)	(48%)
Total debt	465.926	516.765	(50.839)	(10%)
Cash and cash equivalents	6.049	10.340	(4.291)	(41%)
Given loans, deposits and similar**	26.669	32.821	(6.152)	(19%)
Net debt	433.208	473.604	(40.396)	(9%)
Net debt/ EBITDA	15,25	14,53
EBITDA for the last 12 months	28.409	32.599

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

** Loans given, securities and deposits

Net assets of the Group is lower compared to the value stated at 31 December 2018 due to deconsolidation of financial statements of Žitar d.o.o. and its subsidiary Žitar konto d.o.o. As at 4 March 2019 the Company has signed a contract on the sales of investments into Žitar, and on 14 March 2019 this business event has been recorded in the Court register.

Total debt of the Group has decreased mainly due to deconsolidation of financial liabilities of Žitar. Decreased debt and increased operating profit show better efficiency of the Group in the first quarter 2019 compared to the same period last year.

Separate business results for the three months period of 2019

Granolio d.d.				In thousands of HRK
	1-3 2019	1-3 2018	change
Operating income	55.881	60.911	(5.029)	(8%)
EBIT	(7.217)	(3.009)	(4.207)	(140%)
margin %	(13%)	(5%)
EBITDA	(4.567)	(393)	(4.174)	1062%
margin %	(8%)	(1%)
Net financial result	(561)	137	(698)	510%
Net result	(7.778)	(2.872)	(4.906)	(171%)
margin %	(13,9%)	(4,7%)

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 feast, 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.

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 it's net realizable value in financial statements for 2018, no profit nor loss from sale of investment has been recognized in Statement of total comprehensive income.

Zdenka - mliječni proizvodi d.o.o.				In thousands of HRK
	1-3 2019	1-3 2018	change
Operating income	32.525	29.746	2.779	9%
EBIT	635	379	256	(68%)
margin %	2%	1%
EBITDA	3.776	3.427	349	10%
margin %	12%	12%
Net financial result	(224)	(60)	(164)	(273%)
Net result	411	319	92	(29%)
margin %	1%	1%

In the first quarter 2019, the company has made better operating result compared to the result in the same period last year due to better operating efficiency.

Zdenačka farma d.o.o. In thousands of HRK 1-3 2019 1-3 2018 change Operating income 6.473 5.518 955 17% EBIT (163) 528 (691) (131%) margin % (3%) 10% EBITDA 589 1.255 (666) (53%) margin % 9% 23% Net financial result (127) (173) 46 27% Net result (290) 355 (645) (182%) margin % (4%) 6%

In the first quarter 2019 total sales of milk by Zdenačka farma amounted to 1 million kilos (Q1 2018: 1,2 million kilos). Average sales price realised in Q1 2019 was lower than the average sales price realised in the same period last year by 3%. Other than by sale of milk, the income was also made from trade in goods.

Employees

In the three months 2019 the Group employed 438 employees based on man-hour basis (in the three months 2018: 416 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 three months period 2019.

Annex 1	ISSUER'S GENERAL DATA
Reporting period:	1.1.2019 31.3.2019 to
Year:	2019
Quarter:	1.
	Quarterly financial statements
Registration number (MB): 01244272	Issuer's home Member Croatia State code:
Entity's registration 080111595 number (MBS):
Personal identification 59064993527 number (OIB):	213800O3Z6ZSDBAKG321 LEI:
Institution 15989 code:
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 452 (end of the reporting
Consolidated report: KD	KN KD (KN-not consolidated/KD-consolidated)
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
ŽITAR D.O.O.	DONJI MIHOLJAC 1443119
ŽITAR KONTO D.O.O.	DONJI MIHOLJAC 4212517
	Yes
Bookkeeping firm: No	No (Yes/No) (name of the bookkeeping firm)
Contact person: JASENKA KORDIĆ
(only name and surname of the contact person) Telephone: 01/6320-261
E-mail address: jkordic@granolio.hr
Audit firm: DELOITTE d.o.o
(name of the audit firm)
Certified auditor: Vanja Vlak (name and surname)

BALANCE SHEET balance as at 31.3.2019

in HRK Submitter: Granolio d.d.
Item	ADP code	Last day of the preceding business	At the reporting date of the current period
1	2	year 3	4
A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID	001
B) FIXED ASSETS (ADP 003+010+020+031+036) I INTANGIBLE ASSETS (ADP 004 to 009)	002 003	449.163.043 122.816.990	373.058.110 126.009.887
1 Research and development	004	0	0
2 Concessions, patents, licences, trademarks, software and other	005	120.452.823	120.618.342
rights
3 Goodwill 4 Advances for the purchase of intangible assets	006 007	0 0	0 0
5 Intangible assets in preparation	008	0	0
6 Other intangible assets	009	2.364.167	5.391.545
II TANGIBLE ASSETS (ADP 011 to 019)	010	315.055.569	235.821.078
1 Land	011	23.643.099	14.295.423
2 Buildings 3 Plant and equipment	012 013	214.789.139 47.911.643	168.720.748 39.249.945
4 Tools, working inventory and transportation assets	014	2.230.274	1.167.092
5 Biological assets	015	9.939.064	5.801.999
6 Advances for the purchase of tangible assets	016	401.922	0
7 Tangible assets in preparation	017	79.651	1.430.574
8 Other tangible assets	018	11.013.777	108.297 5.047.000
9 Investment property III FIXED FINANCIAL ASSETS (ADP 021 to 030)	019 020	5.047.000 10.172.484	10.109.145
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	0 249.275
8 Loans, deposits, etc. given 9 Other investments accounted for using the equity method	028 029	302.114 0	0
10 Other fixed financial assets	030	9.870.370	9.859.870
IV RECEIVABLES (ADP 032 to 035)	031	15.000	15.000
1 Receivables from undertakings within the group	032	0	0
2 Receivables from companies linked by virtue of participating interests	033	0	0
3 Customer receivables	034	0	0
4 Other receivables	035	15.000	15.000
V DEFERRED TAX ASSETS C) CURRENT ASSETS (ADP 038+046+053+063)	036 037	1.103.000 244.282.874	1.103.000 214.855.493
I INVENTORIES (ADP 039 to 045)	038	68.515.150	49.627.330
1 Raw materials and consumables	039	21.261.304	22.125.423
2 Work in progress	040	6.808.217	3.799.813
3 Finished goods	041	33.875.722	14.066.200
4 Merchandise 5 Advances for inventories	042	6.531.262	9.635.894 0
6 Fixed assets held for sale	043 044	38.645 0	0
7 Biological assets	045	0	0
II RECEIVABLES (ADP 047 to 052)	046	132.908.459	132.759.079
1 Receivables from undertakings within the group	047	664.746	664.741
2 Receivables from companies linked by virtue of participating interests	048	0	0
3 Customer receivables	049	95.436.009	83.255.041
4 Receivables from employees and members of the undertaking	050	467	497
5 Receivables from government and other institutions	051	5.687.313	3.904.988
6 Other receivables III CURRENT FINANCIAL ASSETS (ADP 054 to 062)	052	31.119.924	44.933.812 26.419.773
1 Investments in holdings (shares) of undertakings within the group	053 054	32.519.590 0	0
2 Investments in other securities of undertakings within the group	055	0	0
3 Loans, deposits, etc. to undertakings within the group	056	10.190.819	10.190.819
4 Investments in holdings (shares) of companies linked by virtue of participating interests	057	0	0
5 Investment in other securities of companies linked by virtue of participating interests	058	0	0
6 Loans, deposits etc. to companies linked by virtue of participating interests	059	0	0
7 Investments in securities	060	178.441	178.281
8 Loans, deposits, etc. given	061	22.150.330	16.050.673
9 Other financial assets IV CASH AT BANK AND IN HAND	062	0	0 6.049.311
D ) PREPAID EXPENSES AND ACCRUED INCOME	063 064	10.339.675 666.551	535.779
E) TOTAL ASSETS (ADP 001+002+037+064)	065	694.112.468	588.449.382
OFF-BALANCE SHEET ITEMS	066

LIABILITIES
A) CAPITAL AND RESERVES (ADP 068 to	067	104.806.286	54.306.063
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	1.208.227	1.208.554
1 Legal reserves	071	408.227	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
2 Cash flow hedge - effective portion	079
3 Hedge of a net investment in a foreign operation - effective portion	080
VI RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 082- 083)	081	-199.590.747	-126.524.813
1 Retained profit	082	0	0
2 Loss brought forward	083	199.590.747	126.524.813
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 085-086)	084	81.861.224	-8.452.601
1 Profit for the business year	085	81.861.224	0
2 Loss for the business year	086	0	8.452.601
VIII MINORITY (NON-CONTROLLING) INTEREST	087	60.437.203	27.930.502
B) PROVISIONS (ADP 089 to 094)	088	0	0
1 Provisions for pensions, termination benefits and similar obligations	089
2 Provisions for tax liabilities	090
3 Provisions for ongoing legal cases	091
4 Provisions for renewal of natural resources	092
5 Provisions for warranty obligations	093
6 Other provisions	094
C) LONG-TERM LIABILITIES (ADP 096 to 106)	095	482.627.602	452.344.023
1 Liabilities to undertakings within the group	096	0	0
2 Liabilities for loans, deposits, etc. of undertakings within the group	097	0	0
3 Liabilities to companies linked by virtue of participating interests	098	0	0
4 Liabilities for loans, deposits etc. of companies linked by virtue of	099	0	0
participating interests
5 Liabilities for loans, deposits etc.	100	11.126	0
6 Liabilities to banks and other financial institutions	101	418.048.934	388.162.461 0
7 Liabilities for advance payments 8 Liabilities to suppliers	102	0	51.685.264
9 Liabilities for securities	103 104	51.906.486 0	0
10 Other long-term liabilities	105	0	0
11 Deferred tax liability	106	12.661.056	12.496.298
D) SHORT-TERM LIABILITIES (ADP 108 to 121)	107	95.537.341	75.683.062
1 Liabilities to undertakings within the group	108	0	0
			0
2 Liabilities for loans, deposits, etc. of undertakings within the group	109	0
3 Liabilities to companies linked by virtue of participating interests	110	0	0
4 Liabilities for loans, deposits etc. of companies linked by virtue of participating interests	111	0	0
5 Liabilities for loans, deposits etc.	112	0	1.700.000
6 Liabilities to banks and other financial institutions	113	30.535.530	8.543.685
7 Liabilities for advance payments	114	668.221	416.991
8 Liabilities to suppliers	115	48.362.280	51.494.697
9 Liabilities for securities	116	8.870.000	8.380.000
10 Liabilities to employees	117	2.255.225	2.067.319
11 Taxes, contributions and similar liabilities	118	3.908.720	2.306.575
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	937.365	773.795
E) ACCRUALS AND DEFERRED INCOME	122	11.141.240	6.116.235
F) TOTAL – LIABILITIES (ADP 067+088+095+107+122)	123	694.112.469	588.449.383
G) OFF-BALANCE SHEET ITEMS	124

for the period 01.01.2019 to 31.03.2019 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 126 to 130) 1 Income from sales with undertakings within the group	125 126	103.028.002 0	103.028.002 0	98.494.771 0	98.494.771 0
2 Income from sales (outside group) 3 Income from the use of own products, goods and services	127 128	98.784.956 367.521	98.784.956 367.521	94.903.050 688.045	94.903.050 688.045
4 Other operating income with undertakings within the group	129	0	0	0	0
5 Other operating income (outside the group) II OPERATING EXPENSES (ADP 132+133+137+141+142+143+146+153)	130 131	3.875.525 106.383.908	3.875.525 106.383.908	2.903.676 105.660.666	2.903.676 105.660.666
1 Changes in inventories of work in progress and finished goods	132	-2.885.176	-2.885.176	-5.868.560	-5.868.560
2 Material costs (ADP 134 to 136) a) Costs of raw materials and consumables	133 134	89.071.448	89.071.448 70.933.477	91.528.710 72.084.631	91.528.710 72.084.631
b) Costs of goods sold	135	70.933.477 10.273.600	10.273.600	12.714.862	12.714.862
c) Other external costs 3 Staff costs (ADP 138 to 140)	136 137	7.864.371 9.114.750	7.864.371 9.114.750	6.729.217 9.507.035	6.729.217 9.507.035
a) Net salaries and wages	138	5.846.982	5.846.982	6.146.980	6.146.980
b) Tax and contributions from salary costs c) Contributions on salaries	139 140	1.974.152 1.293.616	1.974.152 1.293.616	2.092.278 1.267.777	2.092.278 1.267.777
4 Depreciation 5 Other costs	141 142	7.739.290 1.628.047	7.739.290 1.628.047	7.341.611 1.527.897	7.341.611 1.527.897
6 Value adjustments (ADP 144+145)	143	0	0	17.767	17.767
a) fixed assets other than financial assets b) current assets other than financial assets	144 145	0 0	0 0	0 17.767	0 17.767
7 Provisions (ADP 147 to 152) a) Provisions for pensions, termination benefits and similar	146	0	0	0	0
b) Provisions for tax liabilities	147 148
c) Provisions for ongoing legal cases d) Provisions for renewal of natural resources	149 150
e) Provisions for warranty obligations	151
f) Other provisions 8 Other operating expenses	152 153	1.715.549	1.715.549	1.606.206	1.606.206
III FINANCIAL INCOME (ADP 155 to 164) 1 Income from investments in holdings (shares) of undertakings within	154	1.253.291	1.253.291	57.514	57.514
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	0	0	0	0
4 Other interest income from operations with undertakings within the group	158	0	0	30.493	30.493
5 Exchange rate differences and other financial income from operations	159	0	0	0	0
with undertakings within the group 6 Income from other long-term financial investments and loans	160	176.026	176.026	0	0
7 Other interest income	161	12.401	12.401	2.858	2.858
8 Exchange rate differences and other financial income 9 Unrealised gains (income) from financial assets	162 163	1.064.864 0	1.064.864 0	24.163 0	24.163 0
10 Other financial income IV FINANCIAL EXPENSES (ADP 166 to 172)	164 165	0 1.094.040	0 1.094.040	0 1.344.220	0 1.344.220
1 Interest expenses and similar expenses with undertakings within the	166	0	0	0	0
group 2 Exchange rate differences and other expenses from operations with	167	0	0	0	0
undertakings within the group 3 Interest expenses and similar expenses	168	972.753	972.753	1.249.307	1.249.307
4 Exchange rate differences and other expenses	169	121.192	121.192	94.786	94.786
5 Unrealised losses (expenses) from financial assets 6 Value adjustments of financial assets (net)	170 171	0 0	0 0	0 0	0 0
7 Other financial expenses V SHARE IN PROFIT FROM UNDERTAKINGS LINKED BY VRITUE	172	95	95	127	127
OF PARTICIPATING INTERESTS	173	0	0	0	0
VI SHARE IN PROFIT FROM JOINT VENTURES VII SHARE IN LOSS OF COMPANIES LINKED BY VIRTUE OF	174 175	0 0	0 0	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	104.281.293	104.281.293	98.552.285	98.552.285
X TOTAL EXPENDITURE (ADP 131+165+175 + 176) XI PRE-TAX PROFIT OR LOSS (ADP 177-178)	178 179	107.477.948 -3.196.655	107.477.948 -3.196.655	107.004.886 -8.452.601	107.004.886 -8.452.601
1 Pre-tax profit (ADP 177-178) 2 Pre-tax loss (ADP 178-177)	180 181	0 -3.196.655	0 -3.196.655	0 -8.452.601	0 -8.452.601
XII INCOME TAX	182	0	0	0	0
XIII PROFIT OR LOSS FOR THE PERIOD (ADP 179-182) 1 Profit for the period (ADP 179-182)	183 184	-3.196.655 0	-3.196.655 0	-8.452.601 0	-8.452.601 0
2 Loss for the period (ADP 182-179) DISCONTINUED OPERATIONS (to be filled in by undertakings subject to IFRS only with discontinued operations)	185	-3.196.655	-3.196.655	-8.452.601	-8.452.601
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
2 Pre-tax loss on discontinued operations XV INCOME TAX OF DISCONTINUED OPERATIONS	188 189
1 Discontinued operations profit for the period (ADP 186-189)	190
2 Discontinued operations loss for the period (ADP 189-186) TOTAL OPERATIONS (to be filled in only by undertakings subject to IFRS with discontinued operations)	191
XVI PRE-TAX PROFIT OR LOSS (ADP 179+186) 1 Pre-tax profit (ADP 192)	192 193
2 Pre-tax loss (ADP 192)	194
XVII INCOME TAX (ADP 182+189) XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 192-195)	195 196
1 Profit for the period (ADP 192-195)	197
2 Loss for the period (ADP 195-192) APPENDIX to the P&L (to be filled in by undertakings that draw up consolidated annual financial statements)	198
XIX PROFIT OR LOSS FOR THE PERIOD (ADP 200+201) 1 Attributable to owners of the parent	199 200	-3.196.655 -2.762.933	-3.196.655 -2.762.933	-8.452.601 -8.257.744	-8.452.601 -8.257.744
2 Attributable to minority (non-controlling) interest	201	-433.722	-433.722	-194.857	-194.857
STATEMENT OF OTHER COMPRHENSIVE INCOME (to be filled in by undertakings subject to IFRS) I PROFIT OR LOSS FOR THE PERIOD	202
II OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX (ADP 204 to 211)	203	0	0	0	0
1 Exchange rate differences from translation of foreign operations 2 Changes in revaluation reserves of fixed tangible and intangible	204
assets	205
3 Profit or loss arising from subsequent measurement of financial assets available for sale	206
4 Profit or loss arising from effective cash flow hedging	207
5 Profit or loss arising from effective hedge of a net investment in a foreign operation	208
6 Share in other comprehensive income/loss of companies linked by virtue of participating interests	209
7 Actuarial gains/losses on the defined benefit obligation 8 Other changes in equity unrelated to owners	210 211
III TAX ON OTHER COMPREHENSIVE INCOME FOR THE PERIOD	212
IV NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 203-212)	213	0	0	0	0
V COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 202+213)	214	0	0	0	0
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	-3.196.655	-3.196.655	-8.452.601	-8.452.601
1 Attributable to owners of the parent 2 Attributable to minority (non-controlling) interest	216 217	-2.762.933 -433.722	-2.762.933 -433.722	-8.257.744 -194.857	-8.257.744 -194.857

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

in HRK

Submitter: Granolio d.d.
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	-3.196.655	-8.452.601
a) Depreciation	002 003	9.408.325 7.739.291	7.467.485 7.341.610
b) Gains and losses from sale and value adjustment of fixed tangible and	004	1.162.724	957.697
intangible assets
c) Gains and losses from sale and unrealised gains and losses and value adjustment of financial assets	005	-946.097	1.314
d) Interest and dividend income	006	0	-126.573
e) Interest expenses	007	1.452.407	1.371.657
f) Provisions	008	0	0
g) Exchange rate differences (unrealised) h) Other adjustments for non-cash transactions and unrealised gains and	009	0	0
losses	010	0	-2.078.220
I Cash flow increase or decrease before changes in working capital (ADP 001+002)	011	6.211.670	-985.116
3 Changes in the working capital (ADP 013 to 016)	012	-21.558.326	-17.101.984
a) Increase or decrease in short-term liabilities	013	-6.694.658	5.625.255
b) Increase or decrease in short-term receivables	014	4.314.543	-9.875.794
c) Increase or decrease in inventories	015	-18.095.548	-12.851.445
d) Other increase or decrease in working capital II Cash from operations (ADP 011+012)	016 017	-1.082.663 -15.346.656	0 -18.087.100
4 Interest paid	018	-898.872	-1.214.007
5 Income tax paid	019	2.148.559	0
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019)	020	-14.096.969	-19.301.107
Cash flow from investment activities
1 Cash receipts from sales of fixed tangible and intangible assets	021	0	176.784
2 Cash receipts from sales of financial instruments	022	0	0
3 Interest received	023	44.560	456.096
4 Dividends received	024	0	0
5 Cash receipts from repayment of loans and deposits 6 Other cash receipts from investment activities	025 026	46.785 0	2.988.451 22.000.000
III Total cash receipts from investment activities (ADP 021 to 026)	027	91.345	25.621.331
1 Cash payments for the purchase of fixed tangible and intangible assets	028	-2.188.910	-6.297.827
2 Cash payments for the acquisition of financial instruments	029	0	0
3 Cash payments for loans and deposits for the period	030	-5.000	-145.000
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	-2.193.910	-6.442.827
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033)	034	-2.102.565	19.178.504
Cash flow from financing activities 1 Cash receipts from the increase in initial (subscribed) capital	035	0	0
2 Cash receipts from the issue of equity financial instruments and debt	036	0	0
financial instruments
3 Cash receipts from credit principals, loans and other borrowings 4 Other cash receipts from financing activities	037 038	19.176.073 0	3.000.000 0
V Total cash receipts from financing activities (ADP 035 to 038)	039	19.176.073	3.000.000
1 Cash payments for the repayment of credit principals, loans and other borrowings and debt financial instruments	040	-3.951.595	-6.367.742
2 Cash payments for dividends	041	0	0
3 Cash payments for finance lease	042	-116.180	-310.019
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	-390.000	-490.000
VI Total cash payments from financing activities (ADP 040 to 044)	045	-4.457.775	-7.167.761
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045)	046	14.718.298	-4.167.761
1 Unrealised exchange rate differences in respect of cash and cash equivalents	047
D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP 020+034+046+047)	048	-1.481.236	-4.290.364
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	049	3.604.962	10.339.675
F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD(ADP 048+049)	050	2.123.726	6.049.311

STATEMENT OF CHANGES IN EQUITY

for the period from 1.1.2019	to 31.3.2019															in HRK
Item	ADP code	Initial (subscribed) capital	Capital reserves	Legal reserves	Reserves for treasury shares	Treasury shares and holdings (deductible item)	Statutory reserves Other reserves		Attributable to owners of the parent Revaluation reserves	Fair value of financial assets available for sale	Cash flow hedge - effective portion	Hedge of a net investment in a foreign operation -	Retained profit / loss brought forward	Profit/loss for the business year	Total attributable to owners of the parent	Minority (non controlling) interest	Total capital and reserves
1	2	3	4	5	6	7	8	9	10	11	12	effective portion 13	14	15	16 (3 to 6 - 7 + 8 to 15)	17	18 (16+17)
Previous period 1 Balance on the first day of the previous business year	01	19.016.430	84.186.547	408.227	800.000	0	0	0	60.117.173		0	0 0	-868.308	-201.658.850	-37.998.781	58.358.525	20.359.744
2 Changes in accounting policies	02	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
4 Balance on the first day of the previous business year (restated) (ADP 01 to 03)	04	19.016.430	84.186.547	408.227	800.000	0	0	0	60.117.173		0	0 0	-868.308	-201.658.850	-37.998.781	58.358.525	20.359.744
5 Profit/loss of the period	05	0	0	0	0		0 0	0	0		0	0 0		0 81.861.224	81.861.224		81.861.224
6 Exchange rate differences from translation of foreign operations	06	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
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
9 Profit or loss arising from effective cash flow hedge	09	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
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
12 Actuarial gains/losses on the defined benefit obligation	12	0	0	0	0		0 0	0	0		0	0 0		0	0		0
13 Other changes in equity unrelated to owners	13		9.260					0	679.363		0	0 0	-717.381		-28.758		-28.758
14 Tax on transactions recognised directly in equity	14	0	0	0	0		0 0	0	-122.285		0	0 0	657.682		535.397		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
16 Increase in initial (subscribed) capital arising from the reinvestment of profit	16							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
18 Redemption of treasury shares/holdings	18							0	0		0	0 0		0	0		0
19 Payment of share in profit/dividend 20 Other distribution to owners	19 20							0 0	0 0		0 0	0 0 0 0		0 0	0 0		0 0
21 Transfer to reserves according to the annual schedule	21							0	0		0	0 0	-201.658.850	201.658.850	0	2.078.678	2.078.678
22 Increase in reserves arising from the pre-bankruptcy settlement procedure	22							0	0		0	0 0		0	0		0
23 Balance on the last day of the previous business year reporting period (04 to 22)	23	19.016.430	84.195.807	408.227	800.000	0	0	0	57.678.142		0	0 0	-199.590.748	81.861.224	44.369.082	60.437.203	104.806.285
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the IFRS)
I OTHER COMPREHENSIVE INCOME OF THE PREVIOUS PERIOD, NET OF TAX (ADP 06 to 14)	24	0	9.260	0	0		0 0	0	-2.439.031		0	0 0	2.936.410	0	506.639	0	506.639
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	2.936.410	81.861.224	82.367.863	0	82.367.863
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	-201.658.850	201.658.850	0	2.078.678	2.078.678
Current period
1 Balance on the first day of the current business year	27	19.016.430	84.195.807	408.227	800.000	0	0	0	57.678.142		0	0 0	-199.590.748	81.861.224	44.369.082	60.437.203	104.806.285
2 Changes in accounting policies	28	0	0	0	0		0 0	0	0		0	0 0		0 0	0		0
3 Correction of errors	29	0	0	327	0		0 0	0	0		0	0 0		0 0	327		327
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	-199.590.748	81.861.224	44.369.409	60.437.203	104.806.612
5 Profit/loss of the period	31	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
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
8 Profit or loss arising from subsequent measurement of financial assets available for	34	0	0	0	0		0 0	0	0			0 0			0		0
sale
9 Profit or loss arising from effective cash flow hedge	35	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
11 Share in other comprehensive income/loss of companies linked by virtue of participating interests	37	0	0	0	0		0 0								0		0
12 Actuarial gains/losses on the defined benefit obligation	38	0	0	0	0		0 0								0		0
13 Other changes in equity unrelated to owners	39												-9.706.006	0	-9.706.006	-32.506.701	-42.212.707
14 Tax on transactions recognised directly in equity 15 Increase/decrease in initial (subscribed) capital (other than from reinvesting profit and other than arising from the pre-bankruptcy settlement procedure)	40 41	0	0	0	0		0 0						164.758 0	0 0	164.758 0		164.758 0
16 Increase in initial (subscribed) capital arising from the reinvestment of profit	42												0	0	0		0
17 Increase in initial (subscribed) capital arising from the pre-bankruptcy settlement procedure	43												0	0	0		0
18 Redemption of treasury shares/holdings	44												0	0	0		0
19 Payment of share in profit/dividend	45												0	0	0		0
20 Other distribution to owners 21 Transfer to reserves according to the annual schedule	46 47												0 81.861.224	0 -81.861.224	0 0		0 0
22 Increase in reserves arising from the pre-bankruptcy settlement procedure	48												0	0	0		0
23 Balance on the last day of the current business year reporting period (ADP	49		84.195.807	408.554	800.000	0	0	0	56.932.184		0	0 0	-126.524.814	0	34.828.161	27.930.502	62.758.663
30 to 48)		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	50	0	0	0	0		0 0	0	-745.958		0	0 0	-8.795.290	0	-9.541.248	-32.506.701	-42.047.949
(ADP 32 to 40) 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	-8.795.290	0	-9.541.248	-32.506.701	-42.047.949
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	81.861.224	-81.861.224	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.

In the first quarter of 2019, the Group carried out the deconsolidation of Žitar d.o.o. and its subsidiary Žitar konto d.o.o.

The result of deconsolidation is shown in the value of Capital and reserves and the value of Noncontrolling Interest. The changes are visible in the Report on the Movement of Capital.