Granolio d.d.

Quarterly Report • Oct 30, 2019

Unconsolidated financial results for the nine months period ended 30 September 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 nine months of 2019

	In thousands HRK
Granolio d.d.	1-9 2019	1-9 2018	change
Operating income	209.510	194.771	14.739	8%
Operating expenses	220.590	205.186	15.404	8%
EBIT	(11.080)	(10.415)	(665)	6%
EBIT margin	-5%	-5%
EBITDA	(3.124)	(2.612)	(512)	20%
EBITDA margin	-1%	-1%
Net financial result	(4.769)	319	(5.088)	(1595%)
Net result for the period	(15.849)	(10.096)	(5.753)	(57%)

*EBITDA= EBIT + depreciation + impairment expenses

In the nine months 2019 the Company has made lower operating result (EBIT) compared to the same period last year. The reason for that are high prices of wheat that are not followed by equal increase in sales prices of flour. The second reason is that Company does not have enough working capital to increase volume of trading in sowing materials and crops.

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.	30.9.2019	31.12.2018	change
Net asset (capital and reserves)	39.153	54.480	(15.327)	(28%)
Total debt to financial institutions	365.714	372.718	(7.004)	(2%)
Cash and cash equivalents	1.002	3.574	(2.572)	(72%)
Loans given, deposits etc.*	56.322	36.328	19.994	55%
Net debt	308.390	332.816	(24.426)	(7%)
Net debt/EBITDA		115,36
EBITDA for the last 12 months	2.373	2.885	(512)	(18%)

*Loans given, securities and deposits

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 is approximately same as the income earned in the same period last year. Significant increase is recorded in trading segment where sales income in the nine months 2019. has increased by 85% compared to the same period last year.

Employees

In the nine months period 2019 the Company employed 159 employees based on man-hour basis (in the nine months period 2018: 152 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 2019.

Annex 1		ISSUER'S GENERAL DATA
Reporting period:		1.1.2019 to	30.9.2019
Year:		2019
Quarter:		3.
		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	161
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:
Bookkeeping firm:	No	(Yes/No)		Yes No
	Contact person: Jasenka Kordić		(name of the bookkeeping firm)
	(only name and surname of the contact person)
	Telephone: 01/6320-261

	E-mail address: jkordic@granolio.hr
	Audit firm: BDO Croatia d.o.o.
	(name of the audit firm)
Certified auditor: Hrvoje Stipić
	(name and surname)

BALANCE SHEET balance as at 30.09.2019

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	0	0
B) FIXED ASSETS (ADP 003+010+020+031+036) I INTANGIBLE ASSETS (ADP 004 to 009)	002 003	376.229.861 122.614.230	340.493.467 121.626.448
1 Research and development	004	0	0
2 Concessions, patents, licences, trademarks, software and other	005	120.250.063	120.511.781
rights 3 Goodwill	006	0	0
4 Advances for the purchase of intangible assets	007	0	0
5 Intangible assets in preparation	008	0	0
6 Other intangible assets	009	2.364.167	1.114.667
II TANGIBLE ASSETS (ADP 011 to 019)	010	151.119.937	147.215.858 9.155.420
1 Land 2 Buildings	011 012	9.155.420 115.283.310	112.933.119
3 Plant and equipment	013	12.076.530	10.836.022
4 Tools, working inventory and transportation assets	014	576.321	193.921
5 Biological assets	015	0	0
6 Advances for the purchase of tangible assets	016	0	0
7 Tangible assets in preparation 8 Other tangible assets	017	9.334.080	9.384.080 98.296
9 Investment property	018 019	79.276 4.615.000	4.615.000
III FIXED FINANCIAL ASSETS (ADP 021 to 030)	020	102.480.694	71.651.161
1 Investments in holdings (shares) of undertakings within the group	021	92.427.762	70.427.762
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 5 Investment in other securities of companies linked by virtue of	024	0	0
participating interests 6 Loans, deposits etc. to companies linked by virtue of participating	025	0	0
interests	026	0	0
7 Investments in securities	027	0	0
8 Loans, deposits, etc. given	028	193.062	193.062
9 Other investments accounted for using the equity method 10 Other fixed financial assets	029 030	0 9.859.870	0 1.030.337
IV RECEIVABLES (ADP 032 to 035)	031	15.000	0
1 Receivables from undertakings within the group	032	0	0
2 Receivables from companies linked by virtue of participating interests	033	0	0
3 Customer receivables	034	0	0
4 Other receivables	035	15.000	0 0
V DEFERRED TAX ASSETS C) CURRENT ASSETS (ADP 038+046+053+063)	036 037	0 142.661.088	186.483.813
I INVENTORIES (ADP 039 to 045)	038	10.075.836	20.730.711
1 Raw materials and consumables	039	5.704.493	5.916.802
2 Work in progress	040	181.223	136.143
3 Finished goods 4 Merchandise	041 042	1.608.644 2.581.476	2.436.806 12.240.960
5 Advances for inventories	043	0	0
6 Fixed assets held for sale	044	0	0
7 Biological assets	045	0	0
II RECEIVABLES (ADP 047 to 052)	046	92.875.534	108.621.283
1 Receivables from undertakings within the group 2 Receivables from companies linked by virtue of participating	047 048	8.611.329 0	9.452.224 0
interests			60.779.862
3 Customer receivables 4 Receivables from employees and members of the undertaking	049 050	55.445.225 0	313
5 Receivables from government and other institutions	051	670.540	616.366
6 Other receivables	052	28.148.440	37.772.518
III CURRENT FINANCIAL ASSETS (ADP 054 to 062)	053	36.135.368	56.129.356
1 Investments in holdings (shares) of undertakings within the group 2 Investments in other securities of undertakings within the group	054 055	0 0	0 0
3 Loans, deposits, etc. to undertakings within the group			19.175.030
4 Investments in holdings (shares) of companies linked by virtue of participating interests	056 057	22.935.460 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	178.281	149.624
8 Loans, deposits, etc. given 9 Other financial assets	061	13.021.627	36.804.702 0
IV CASH AT BANK AND IN HAND	062 063	0 3.574.350	1.002.463
D ) PREPAID EXPENSES AND ACCRUED INCOME	064	504.406	507.731
E) TOTAL ASSETS (ADP 001+002+037+064)	065	519.395.355	527.485.011
OFF-BALANCE SHEET ITEMS	066	9.810.363	9.211.165

LIABILITIES
A) CAPITAL AND RESERVES (ADP 068 to	067	54.480.310	39.154.036
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	4.296.923
1 Legal reserves	071	408.554	3.496.923
2 Reserves for treasury shares	072	800.000	800.000
3 Treasury shares and holdings (deductible item)	073	0	0
4 Statutory reserves	074	0	0
5 Other reserves	075	0	0
IV REVALUATION RESERVES	076	57.678.142	55.426.457
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	-169.386.014	-107.932.612
1 Retained profit	082	0	0
2 Loss brought forward	083	169.386.014	107.932.612
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 085-086)	084	61.767.391	-15.848.969
1 Profit for the business year	085	61.767.391	0
2 Loss for the business year	086	0	15.848.969
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	400.084.341
1 Liabilities to undertakings within the group	096	0	1.343
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	349.531.493
7 Liabilities for advance payments 8 Liabilities to suppliers	102	0	0 38.383.711
9 Liabilities for securities	103 104	51.748.819 0	0
10 Other long-term liabilities	105	0	0
11 Deferred tax liability	106	12.661.056	12.167.794
D) SHORT-TERM LIABILITIES (ADP 108 to 121)	107	36.845.258	88.091.812
1 Liabilities to undertakings within the group	108	27.456	336
2 Liabilities for loans, deposits, etc. of undertakings within the group	109	0	2.000.000
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	111	0	0
participating interests
5 Liabilities for loans, deposits etc.	112	0	0
6 Liabilities to banks and other financial institutions	113	451.151	4.729.697
7 Liabilities for advance payments	114	668.221	8.075.457
8 Liabilities to suppliers	115	24.239.849	58.322.977
9 Liabilities for securities	116	8.870.000	9.452.164
10 Liabilities to employees	117	938.475	1.096.931
11 Taxes, contributions and similar liabilities	118	1.645.410	4.237.416
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	176.834
E) ACCRUALS AND DEFERRED INCOME	122	291.301	154.822 527.485.011
F) TOTAL – LIABILITIES (ADP 067+088+095+107+122) G) OFF-BALANCE SHEET ITEMS	123	519.395.356	9.211.165
	124	9.810.363

for the period 01.01.2019 to 30.09.2019 STATEMENT OF PROFIT OR LOSS

in HRK

Submitter: Granolio d.d.
Item	ADP	Same period of the previous year		Current period
	code	Cumulative	Quarter	Cumulative	Quarter
1	2	3	4	5	6
I OPERATING INCOME (ADP 126 to 130)	125	194.770.627	68.837.912	209.510.298	78.803.339
1 Income from sales with undertakings within the group	126	3.575.658	1.426.736	3.887.703	938.712
2 Income from sales (outside group)	127	188.725.662	66.767.468	202.607.259	77.338.481
3 Income from the use of own products, goods and services	128	5.436	508	23.285	5.051
4 Other operating income with undertakings within the group	129	0	0 643.200	0 2.992.051	0 521.095
5 Other operating income (outside the group)	130	2.463.871
II OPERATING EXPENSES (ADP 132+133+137+141+142+143+146+153)	131	205.185.670	72.686.956	220.590.384	78.137.258
1 Changes in inventories of work in progress and finished goods 2 Material costs (ADP 134 to 136)	132	-367.443	-921.562 66.016.051	-873.869 197.701.550	-1.048.622 71.242.225
a) Costs of raw materials and consumables	133 134	182.548.449 134.431.458	48.025.402	142.407.138	50.394.620
b) Costs of goods sold	135	30.547.784	10.006.698	40.684.982	14.969.508
c) Other external costs	136	17.569.207	7.983.951	14.609.430	5.878.097
3 Staff costs (ADP 138 to 140)	137	12.260.569	4.123.153	13.092.147	4.492.670
a) Net salaries and wages	138	7.746.261	2.618.687	8.328.695	2.882.255
b) Tax and contributions from salary costs	139	2.877.548	958.350	3.126.357	1.054.360
c) Contributions on salaries	140	1.636.760	546.116	1.637.095	556.055
4 Depreciation	141	7.802.605	2.610.080	7.955.619	2.663.620
5 Other costs	142	1.711.618	447.653	1.669.334	543.143
6 Value adjustments (ADP 144+145)	143	0	0	0	0
a) fixed assets other than financial assets	144	0	0	0	0
b) current assets other than financial assets	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	0	0	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	1.229.872	411.581	1.045.603	244.222
III FINANCIAL INCOME (ADP 155 to 164)	154	1.491.460	366.035	1.200.043	293.774
1 Income from investments in holdings (shares) of undertakings within the group	155	0	0	0	0
2 Income from investments in holdings (shares) of companies linked by virtue of participating interests	156	0	0	0	0
3 Income from other long-term financial investment and loans granted to	157	441.338	146.162	335.158	99.636
undertakings within the group 4 Other interest income from operations with undertakings within the	158	0	0	0	0
group 5 Exchange rate differences and other financial income from operations
with undertakings within the group	159	0	0	0	0
6 Income from other long-term financial investments and loans	160	542.052	189.776	1.017	0
7 Other interest income	161	47.896	28.091	606.536	146.443
8 Exchange rate differences and other financial income	162	460.174	2.006	33.830	12.010
9 Unrealised gains (income) from financial assets	163	0	0	0	0
10 Other financial income	164	0	0	223.502	35.685
IV FINANCIAL EXPENSES (ADP 166 to 172)	165	1.172.404	336.751	5.968.926	4.546.466
1 Interest expenses and similar expenses with undertakings within the group	166	515.661	0	0	0
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	328.719	166.818	2.014.534	689.371
4 Exchange rate differences and other expenses	169	306.199	169.669	84.604	12.562
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	21.825	264	3.869.788	3.844.533
V SHARE IN PROFIT FROM UNDERTAKINGS LINKED BY VRITUE OF
PARTICIPATING INTERESTS	173	0	0	0	0
VI SHARE IN PROFIT FROM JOINT VENTURES	174	0	0	0	0
VII SHARE IN LOSS OF COMPANIES LINKED BY VIRTUE OF	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	196.262.087	69.203.947	210.710.341	79.097.113
X TOTAL EXPENDITURE (ADP 131+165+175 + 176) XI PRE-TAX PROFIT OR LOSS (ADP 177-178)	178	206.358.074	73.023.707 -3.819.760	226.559.310 -15.848.969	82.683.724 -3.586.611
1 Pre-tax profit (ADP 177-178)	179 180	-10.095.987 0	0	0	0

2 Pre-tax loss (ADP 178-177)	181	-10.095.987	-3.819.760	-15.848.969	-3.586.611
XII INCOME TAX	182	0	0	0	0
XIII PROFIT OR LOSS FOR THE PERIOD (ADP 179-182)	183	-10.095.987	-3.819.760	-15.848.969	-3.586.611
1 Profit for the period (ADP 179-182)	184	0	0	0	0
2 Loss for the period (ADP 182-179)	185	-10.095.987	-3.819.760	-15.848.969	-3.586.611
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
XVI PRE-TAX PROFIT OR LOSS (ADP 179+186)	192	0	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 0 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		-10.095.987	-3.819.760	-15.848.969	-3.586.611
(ADP 204 to 211)	203	0	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
6 Share in other comprehensive income/loss of companies linked by virtue of participating interests	209	0	0	0	0
7 Actuarial gains/losses on the defined benefit obligation	210	0	0	0	0
8 Other changes in equity unrelated to owners	211	0	0	0	0
III TAX ON OTHER COMPREHENSIVE INCOME FOR THE PERIOD	212	0	0	0	0
IV NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 203-212)	213	0	0	0
V COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 202+213)	214	-10.095.987	-3.819.760	-15.848.969	-3.586.611
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
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 30.09.2019

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	001	-10.095.987	-15.848.969
2 Adjustments (ADP 003 to 010):	002	7.562.315	11.191.310
a) Depreciation b) Gains and losses from sale and value adjustment of fixed tangible and	003	7.802.605	7.955.619
intangible assets	004	8.874	-8.800
c) Gains and losses from sale and unrealised gains and losses and value	005	0	3.605.759
adjustment of financial assets
d) Interest and dividend income	006	-1.031.285	-942.711
e) Interest expenses f) Provisions	007 008	844.380	2.014.534 0
g) Exchange rate differences (unrealised)	009	-220.356	862
h) Other adjustments for non-cash transactions and unrealised gains and
losses	010	158.097	-1.433.953
I Cash flow increase or decrease before changes in working capital (ADP 001+002)	011	-2.533.672	-4.657.659
3 Changes in the working capital (ADP 013 to 016)	012	3.661.742	20.752.662
a) Increase or decrease in short-term liabilities	013	13.125.942	30.962.073
b) Increase or decrease in short-term receivables	014	-5.993.201	-1.027.050
c) Increase or decrease in inventories	015	-3.470.999	-9.182.361
d) Other increase or decrease in working capital	016	0	0
II Cash from operations (ADP 011+012)	017	1.128.070	16.095.003
4 Interest paid 5 Income tax paid	018	-328.719	-1.838.576
	019	-447.639	0
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019)	020	351.712	14.256.427
Cash flow from investment activities
1 Cash receipts from sales of fixed tangible and intangible assets	021	0	0
2 Cash receipts from sales of financial instruments	022	0	0
3 Interest received	023	280.147	969.488
4 Dividends received	024	0	0
5 Cash receipts from repayment of loans and deposits	025	796.898	7.761.344
6 Other cash receipts from investment activities	026	10.215	11.268.611
III Total cash receipts from investment activities (ADP 021 to 026)	027	1.087.260	19.999.443
1 Cash payments for the purchase of fixed tangible and intangible assets	028	-1.722.204	-2.714.934
2 Cash payments for the acquisition of financial instruments	029	0	0
3 Cash payments for loans and deposits for the period	030	0	-26.816.162
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	-1.722.204	-29.531.096
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033)	034	-634.944	-9.531.653
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	037	780.000	2.000.000
4 Other cash receipts from financing activities	038	0	0
			2.000.000
V Total cash receipts from financing activities (ADP 035 to 038)	039	780.000
1 Cash payments for the repayment of credit principals, loans and other	040	-729.000	-7.260.000
borrowings and debt financial instruments 2 Cash payments for dividends	041	0	0
3 Cash payments for finance lease	042	-377.031	-446.661
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	-1.030.000	-1.590.000
VI Total cash payments from financing activities (ADP 040 to 044)	045	-2.136.031	-9.296.661
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045)	046	-1.356.031	-7.296.661
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	-1.639.262	-2.571.887
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	1.161.462	1.002.463

in HRK

STATEMENT OF CHANGES IN EQUITY

for the period from 1.1.2019	to 30.6.2019														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	Hedge of a net Cash flow hedge - investment in a effective portion 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	effective portion 12 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 2 Changes in accounting policies	01 02	19.016.430 0	84.186.547 0	408.554 0	800.000 0		0 0	0 0 0 0	60.117.173 0	0 0	0 0	0 0	9.803.142 -198.186.628 0	-23.854.782 0 0	0 0	-23.854.782 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 6 Exchange rate differences from translation of foreign operations	05 06	0 0	0 0	0 0	0 0		0 0	0 0 0 0	0 0	0 0	0 0	0 0	0 -10.095.987 0	-10.095.987 0 0	0 0	-10.095.987 0
7 Changes in revaluation reserves of fixed tangible and intangible assets	07	0	0	0	0		0	0 0	-2.245.547	0	0	0	2.245.547	0 0	0	0
8 Profit or loss arising from subsequent measurement of financial assets available for	08	0	0	0	0		0	0 0	0	0	0	0	0	0 0	0	0
sale 9 Profit or loss arising from effective cash flow hedge	09	0	0	0	0		0	0 0	0	0	0	0	0	0 0	0	0
10 Profit or loss arising from effective hedge of a net investment in a foreign operation	10	0	0	0	0		0	0 0	0	0	0	0	0	0 0	0	0
11 Share in other comprehensive income/loss of companies linked by virtue of participating interests	11	0	0	0	0		0	0 0	0	0	0	0	0	0 0	0	0
12 Actuarial gains/losses on the defined benefit obligation	12	0	0	0	0		0	0 0	0	0	0	0	0	0 0	0	0
13 Other changes in equity unrelated to owners	13	0	9.260	0	0		0	0 0	679.363	0	0	0	15.343.681	0 16.032.304	0	16.032.304
14 Tax on transactions recognised directly in equity	14	0	0	0	0		0	0 0	-122.285	0	0	0	492.925	0 370.640	0	370.640
15 Increase/decrease in initial (subscribed) capital (other than from reinvesting profit and other than arising from the pre-bankruptcy settlement procedure)	15	0	0	0	0		0	0 0	0	0	0	0	0	0 0	0	0
16 Increase in initial (subscribed) capital arising from the reinvestment of profit	16	0	0	0	0		0	0 0	0	0	0	0	0	0 0	0	0
17 Increase in initial (subscribed) capital arising from the pre-bankruptcy settlement procedure	17	0	0	0	0		0	0 0	0	0	0	0	0	0 0	0	0
18 Redemption of treasury shares/holdings	18	0	0	0	0		0	0 0	0	0	0	0	0	0 0	0	0
19 Payment of share in profit/dividend	19	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 22 Increase in reserves arising from the pre-bankruptcy settlement procedure	21 22	0 0	0 0	0 0	0 0		0 0	0 0 0 0	0 0	0 0	0 0	0 0	-198.186.628 198.186.628 0	0 0 0	0 0	0 0
23 Balance on the last day of the previous business year reporting period (04 to	23	19.016.430	84.195.807	408.554	800.000		0	0 0	58.428.704	0	0	0	-170.301.333 -10.095.987	-17.547.825	0	-17.547.825
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) I OTHER COMPREHENSIVE INCOME OF THE PREVIOUS PERIOD, NET OF TAX (ADP 06 to 14)	24	0	9.260	0	0		0	0 0	-1.688.469	0	0	0	18.082.153	0 16.402.944	0	16.402.944
II COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD (ADP 05+24)	25	0	9.260	0	0		0	0 0	-1.688.469	0	0	0	18.082.153 -10.095.987	6.306.957	0	6.306.957
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	27	19.016.430	84.195.807	408.554	800.000		0	0 0	57.678.142	0	0	0	-169.386.013 61.767.391	54.480.311	0	54.480.311
2 Changes in accounting policies 3 Correction of errors	28 29	0 0	0 0	0 0	0 0		0 0	0 0 0 0	0 0	0 0	0 0	0 0	0 0	0 0 0 0	0 0	0 0
4 Balance on the first day of the current business year (restated) (ADP 27 to 29)	30	19.016.430	84.195.807	408.554	800.000		0	0 0	57.678.142	0	0	0	-169.386.013 61.767.391	54.480.311	0	54.480.311
5 Profit/loss of the period	31	0	0	0	0		0	0 0	0	0	0	0	0 -15.848.969	-15.848.969	0	-15.848.969
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	-2.251.685	0	0	0	2.251.685	0 0	0	0
8 Profit or loss arising from subsequent measurement of financial assets available for sale	34	0	0	0	0		0	0 0	0	0	0	0	0	0 0	0	0
9 Profit or loss arising from effective cash flow hedge	35	0	0	0	0		0	0 0	0	0	0	0	0	0 0	0	0
10 Profit or loss arising from effective hedge of a net investment in a foreign operation	36	0	0	0	0		0	0 0	0	0	0	0	0	0 0	0	0
11 Share in other comprehensive income/loss of companies linked by virtue of participating interests	37	0	0	0	0		0	0 0	0	0	0	0	0	0 0	0	0
12 Actuarial gains/losses on the defined benefit obligation	38	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 and other than arising from the pre-bankruptcy settlement procedure)	40 41	0 0	0 0	0 0	0 0		0 0	0 0 0 0	0 0	0 0	0 0	0 0	493.262 0	0 493.262 0 0	0 0	493.262 0
16 Increase in initial (subscribed) capital arising from the reinvestment of profit	42	0	0	0	0		0	0 0	0	0	0	0	0	0 0	0	0
17 Increase in initial (subscribed) capital arising from the pre-bankruptcy settlement procedure	43	0	0	0	0		0	0 0	0	0	0	0	0	0 0	0	0
18 Redemption of treasury shares/holdings	44	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
20 Other distribution to owners	46	0	0	0	0		0	0 0	0	0	0	0	0	0 0	0	0
21 Transfer to reserves according to the annual schedule	47	0	0	3.088.369	0		0	0 0	0	0	0	0	58.679.022 -61.767.391	0	0	0
22 Increase in reserves arising from the pre-bankruptcy settlement procedure 23 Balance on the last day of the current business year reporting period (ADP	48	0	0	0	0		0	0 0	0	0	0	0	0	0 0	0	0
30 to 48)	49	19.016.430	84.195.807	3.496.923	800.000		0	0 0	55.426.457	0	0	0	-107.932.611 -15.848.969	39.154.037	0	39.154.037
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	-2.251.685	0	0	0	2.774.380	0 522.695	0	522.695
(ADP 32 to 40)
II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP 31+50)	51	0	0	0	0		0	0 0	-2.251.685	0	0	0	2.774.380 -15.848.969	-15.326.274	0	-15.326.274
III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED DIRECTLY IN EQUITY (ADP 41 to 48)	52	0	0	3.088.369	0		0	0 0	0	0	0	0	58.679.022 -61.767.391	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.- 30.09.2019.

Notes to financial statements for quarterly periods include:

The same accounting policies are applied while drawing up financial statements for the six month reporting period as in the latest annual financial statements except for IFRS 16 that applies to the financial statements starting on January 1, 2019.

The effect of applying IFRS 16 on lease contracts concluded prior to January 1, 2019 is reported in the position Loss brought forward.

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.