Granolio d.d.

Quarterly Report • May 27, 2020

Unconsolidated financial results for the three months period ended 31 March 2020 (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

Early in 2020, a pandemic of the COVID-19 virus spread to the entire world. As the Company operates within the food industry, it is not expected that demand for the company's products would decrease. Company's operations will certainly be affected by interest rate movements, fiscal policy, purchasing power of the population and so on.

Since January 2020, the Company started repaying part of its liabilities to financial institutions, and the other part will become due from July 2020, in accordance with the pre-bankruptcy settlement.

Company's financial indicators for the three months of 2020

		In thousands HRK
Granolio d.d.	1-3 2020	1-3 2019	change
Operating income	67.772	55.881	11.891	21%
Operating expenses	71.739	63.098	8.641	14%
EBIT	(3.967)	(7.217)	3.250	(45%)
EBIT margin	-6%	-13%
EBITDA	(1.707)	(4.567)	2.860	(63%)
EBITDA margin	-3%	-8%
Net financial result	(546)	(561)	15	(3%)
Net result for the period	(4.513)	(7.778)	3.265	42%

*EBITDA= EBIT + depreciation + impairment expenses

A more favorable operating result was achieved in the first quarter of 2020, compared to the same period last year. The increase in revenue and better EBITDA value are the result of higher flour sales in January and February 2020. The increase in flour sales in March 2020 was partly result of a higher demand for food products due to the pandemic caused by the COVID-19 virus.

Net financial result represents the difference between financial revenues and financial expenses. Financial expenses consist mostly of interest on the financial debt which is part of the pre-bankruptcy settlement.

In thousands HRK
Granolio d.d.	31.3.2020	31.12.2019	change
Net asset (capital and reserves)	36.677	41.025	(4.348)	(11%)
Total debt to financial institutions	318.744	320.372	(1.628)	(1%)
Cash and cash equivalents	1.410	2.710	(1.300)	(48%)
Loans given, deposits etc.*	24.585	24.644	(59)	(0%)
Net debt	292.749	293.018	(269)	(0%)
Net debt/EBITDA	108,79	-
EBITDA for the last 12 months	2.691	(169)	2.860	(1692%)

*Loans given, securities and deposits

The company's total debt is reduced by the value of debt repayment. At the beginning of 2020, the Company started repaying part of its liabilities to financial institutions in accordance with the prebankruptcy settlement.

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 revenues are higher compared to sales revenues generated in the previous period. The most significant increase was recorded in the milling segment, where sales revenue in the first quarter of 2020 increased by 30% compared to the same period last year.

Employees

In the three months period 2020 the Company employed 171 employees based on man-hour basis (in the three months period 2019: 156 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 2020.

Annex 1
		ISSUER'S GENERAL DATA
Reporting period:		1.1.2020		31.3.2020
			to
Year:		2020
Quarter:		1.
		Quarterly financial statements
			Issuer's home Member
Registration number (MB):	01244272		State code:	Croatia
Entity's registration	080111595
number (MBS):
Personal identification number (OIB):	59064993527		LEI:	213800O3Z6ZSDBAKG321
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
(end of the reporting	182
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: Mirjana Kelava
	(only name and surname of the contact person) Telephone: 01/6320-233
	E-mail address: mkelava@granolio.hr
	Audit firm: BDO Croatia d.o.o.
Certified auditor: Hrvoje Stipić	(name of the audit firm)
	(name and surname)

BALANCE SHEET balance as at 31.03.2020

ADP code Last day of the preceding business year At the reporting date of the current period 2 3 4 001 0 0 002 334.232.722 332.841.111 003 121.088.941 120.558.229 004 0 0 005 120.166.098 120.276.562 006 0 0 007 0 0 008 0 0 009 922.843 281.667 010 141.539.998 140.679.099 011 8.684.216 8.684.216 012 108.103.601 107.097.893 013 10.391.345 10.677.416 014 268.460 125.698 015 0 0 016 0 0 017 9.384.080 9.390.580 018 93.296 88.296 019 4.615.000 4.615.000 020 71.603.783 71.603.783 021 70.427.762 70.427.762 022 0 0 023 0 0 024 0 0 025 0 0 026 0 0 027 0 0 028 145.684 145.684 029 0 0 030 1.030.337 1.030.337 031 0 0 032 0 0 033 0 0 034 0 0 035 0 0 036 0 0 037 127.465.224 129.091.942 038 20.383.369 21.347.537 039 7.054.842 8.455.173 040 83.677 103.782 041 1.972.395 3.051.588 042 11.272.455 9.736.994 043 0 0 044 0 0 045 0 0 046 79.873.131 81.895.324 047 9.668.968 7.851.539 048 0 0 049 45.084.020 51.121.314 050 0 0 051 2.281.646 204.742 052 22.838.497 22.717.729 053 24.498.478 24.438.943 054 0 0 055 0 0 056 10.374.630 10.329.880 057 0 0 058 0 0 059 0 0 060 149.624 149.624 061 13.974.224 13.959.439 062 0 0 063 2.710.246 1.410.138 064 390.423 389.605 065 462.088.369 462.322.658 IV CASH AT BANK AND IN HAND D ) PREPAID EXPENSES AND ACCRUED INCOME E) TOTAL ASSETS (ADP 001+002+037+064) 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 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) 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 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

OFF-BALANCE SHEET ITEMS

066 9.163.871 10.224.798

LIABILITIES
A) CAPITAL AND RESERVES (ADP 068 to	067	41.025.022	36.676.862
I INITIAL (SUBSCRIBED) CAPITAL	068	19.016.430	19.016.430
II CAPITAL RESERVES	069	84.195.807	84.195.807
III RESERVES FROM PROFIT (ADP 071+072-073+074+075)	070	4.296.923	4.296.923
1 Legal reserves	071	3.496.923	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	54.675.895	53.925.333
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	-107.016.282	-120.244.714
1 Retained profit	082	0	0
2 Loss brought forward	083	107.016.282	120.244.714
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 085-086)	084	-14.143.751	-4.512.917
1 Profit for the business year	085	0	0
2 Loss for the business year	086	14.143.751	4.512.917
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	350.139.555	343.061.450
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 participating interests	099	0	0
5 Liabilities for loans, deposits etc.	100	159.566.584	158.653.671
6 Liabilities to banks and other financial institutions	101	113.796.135	112.032.884
7 Liabilities for advance payments	102	0	0
8 Liabilities to suppliers	103	34.895.728	31.382.600
9 Liabilities for securities	104	29.879.082	29.155.027
10 Other long-term liabilities	105	0	0
11 Deferred tax liability	106	12.002.026	11.837.268
D) SHORT-TERM LIABILITIES (ADP 108 to 121)	107	70.731.894	82.477.691
1 Liabilities to undertakings within the group	108	54.788	50.866
2 Liabilities for loans, deposits, etc. of undertakings within the group	109	0	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			0
participating interests	111	0
5 Liabilities for loans, deposits etc.	112	3.494.159	4.407.071
6 Liabilities to banks and other financial institutions	113	3.969.541	5.359.209
7 Liabilities for advance payments	114	4.403.875	11.368.587
8 Liabilities to suppliers	115	47.297.732	44.687.309
9 Liabilities for securities	116	9.666.218	9.136.218
10 Liabilities to employees	117	1.112.640	1.119.918
11 Taxes, contributions and similar liabilities	118	525.372	6.164.943
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	207.569	183.570
			106.655
E) ACCRUALS AND DEFERRED INCOME	122	191.898
F) TOTAL – LIABILITIES (ADP 067+088+095+107+122)	123	462.088.369	462.322.658
G) OFF-BALANCE SHEET ITEMS	124	9.163.871	10.224.798

STATEMENT OF PROFIT OR LOSS

for the period 01.01.2020 to 31.03.2020

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	55.881.329	55.881.329	67.772.410	67.772.410
1 Income from sales with undertakings within the group	126	1.572.175	1.572.175	1.351.963	1.351.963
2 Income from sales (outside group)	127	53.696.289	53.696.289	65.928.780	65.928.780
3 Income from the use of own products, goods and services	128	9.684	9.684	515	515
4 Other operating income with undertakings within the group	129	0	0	0	0
5 Other operating income (outside the group)	130	603.181	603.181	491.152	491.152
II OPERATING EXPENSES (ADP 132+133+137+141+142+143+146+153)	131	63.097.984	63.097.984	71.739.133	71.739.133
1 Changes in inventories of work in progress and finished goods	132	-1.756.307	-1.756.307	-1.120.091	-1.120.091
2 Material costs (ADP 134 to 136)	133	56.844.082	56.844.082	65.089.308	65.089.308
a) Costs of raw materials and consumables	134	42.511.171	42.511.171	51.558.337	51.558.337
b) Costs of goods sold	135	10.335.205	10.335.205	8.672.925	8.672.925
c) Other external costs	136	3.997.706	3.997.706	4.858.046	4.858.046
3 Staff costs (ADP 138 to 140)	137	4.274.382	4.274.382	4.807.326	4.807.326
a) Net salaries and wages	138	2.692.604	2.692.604	3.111.807	3.111.807
b) Tax and contributions from salary costs	139	1.043.360	1.043.360	1.109.769	1.109.769
c) Contributions on salaries	140	538.418	538.418	585.750	585.750
4 Depreciation	141	2.649.067	2.649.067	2.259.241	2.259.241
5 Other costs	142	587.425	587.425	494.472	494.472
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	499.335	499.335	208.877	208.877
III FINANCIAL INCOME (ADP 155 to 164)	154	142.335	142.335	195.027	195.027
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 undertakings within the group	157	0	0	0	0
4 Other interest income from operations with undertakings within the group	158	122.351	122.351	1.513	1.513
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			0	0	0
7 Other interest income	160	0	1.827	11.549	11.549
8 Exchange rate differences and other financial income	161	1.827	18.157	181.965	181.965
9 Unrealised gains (income) from financial assets	162	18.157	0	0	0
10 Other financial income	163	0	0	0	0
IV FINANCIAL EXPENSES (ADP 166 to 172)	164	0	703.798	741.221	741.221
1 Interest expenses and similar expenses with undertakings within the	165	703.798	0	0	0
group 2 Exchange rate differences and other expenses from operations with	166	0
undertakings within the group	167	0	0	0	0
3 Interest expenses and similar expenses	168	674.977	674.977	637.788	637.788
4 Exchange rate differences and other expenses	169	28.694	28.694	63.273	63.273
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	127	127	40.160	40.160
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 PARTICIPATING INTEREST	175	0	0	0	0
VIII SHARE IN LOSS OF JOINT VENTURES	176	0	0	0	0
IX TOTAL INCOME (ADP 125+154+173 + 174)	177	56.023.664	56.023.664	67.967.437	67.967.437
X TOTAL EXPENDITURE (ADP 131+165+175 + 176)	178	63.801.782	63.801.782	72.480.354	72.480.354
XI PRE-TAX PROFIT OR LOSS (ADP 177-178)	179	-7.778.118	-7.778.118	-4.512.917	-4.512.917
1 Pre-tax profit (ADP 177-178)	180	0	0	0	0
2 Pre-tax loss (ADP 178-177)	181	-7.778.118	-7.778.118	-4.512.917	-4.512.917
XII INCOME TAX	182	0	0	0	0
XIII PROFIT OR LOSS FOR THE PERIOD (ADP 179-182)	183	-7.778.118	-7.778.118	-4.512.917	-4.512.917
1 Profit for the period (ADP 179-182)	184	0	0	0	0
2 Loss for the period (ADP 182-179)	185	-7.778.118	-7.778.118	-4.512.917	-4.512.917

in HRK

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)
XVI PRE-TAX PROFIT OR LOSS (ADP 179+186)	192	0	0	0	0
1 Pre-tax profit (ADP 192)	193	0	0	0	0
2 Pre-tax loss (ADP 192)	194	0	0	0	0
XVII INCOME TAX (ADP 182+189)	195	0	0	0	0
XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 192-195)	196	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	-7.778.118	-7.778.118	-4.512.917	-4.512.917
II OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX	203	0	0	0	0
(ADP 204 to 211)
1 Exchange rate differences from translation of foreign operations	204	0	0	0	0
2 Changes in revaluation reserves of fixed tangible and intangible assets	205	0	0	0	0
3 Profit or loss arising from subsequent measurement of financial assets available for sale	206	0	0	0	0
4 Profit or loss arising from effective cash flow hedging	207	0	0	0	0
5 Profit or loss arising from effective hedge of a net investment in a foreign operation	208	0	0	0	0
6 Share in other comprehensive income/loss of companies linked by	209	0	0	0	0
virtue of participating interests
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	0
V COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 202+213)	214	-7.778.118	-7.778.118	-4.512.917	-4.512.917
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
1 Attributable to owners of the parent	216	0	0	0	0
2 Attributable to minority (non-controlling) interest	217	0	0	0	0

STATEMENT OF CASH FLOWS - indirect method

for the period 01.01.2020 to 31.03.2020

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	-7.778.119	-4.512.917
2 Adjustments (ADP 003 to 010):	002	3.201.209	2.875.631
a) Depreciation b) Gains and losses from sale and value adjustment of fixed tangible and	003	2.649.067	2.259.241
intangible assets	004	0	0
c) Gains and losses from sale and unrealised gains and losses and value	005	0	0
adjustment of financial assets d) Interest and dividend income	006	-124.177	-13.062
e) Interest expenses	007	674.977	637.788
f) Provisions	008	0	0
g) Exchange rate differences (unrealised)	009	1.342	5.164
h) Other adjustments for non-cash transactions and unrealised gains and losses	010	0	-13.500
I Cash flow increase or decrease before changes in working capital
(ADP 001+002)	011	-4.576.910	-1.637.286
3 Changes in the working capital (ADP 013 to 016)	012	3.295.004	3.334.524
a) Increase or decrease in short-term liabilities	013	4.872.582	6.497.966
b) Increase or decrease in short-term receivables	014	9.740.382	-2.212.774
c) Increase or decrease in inventories d) Other increase or decrease in working capital	015	-11.317.960	-950.668 0
II Cash from operations (ADP 011+012)	016 017	0 -1.281.906	1.697.238
4 Interest paid	018	-436.747	-646.226
5 Income tax paid	019	0	0
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019)	020	-1.718.653	1.051.012
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	167.681	204.461
4 Dividends received	024	0	0
5 Cash receipts from repayment of loans and deposits 6 Other cash receipts from investment activities	025	1.306.954	705.025 0
	026	0
III Total cash receipts from investment activities (ADP 021 to 026)	027	1.474.635	909.486
1 Cash payments for the purchase of fixed tangible and intangible assets	028	-472.711	-867.630
2 Cash payments for the acquisition of financial instruments	029	0	0
3 Cash payments for loans and deposits for the period	030	-1.100.000	-645.490
4 Acquisition of a subsidiary, net of cash acquired 5 Other cash payments from investment activities	031 032	0 0	0 0
			-1.513.120
IV Total cash payments from investment activities (ADP 028 to 032)	033	-1.572.711
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033)	034	-98.076	-603.634
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	0	0
4 Other cash receipts from financing activities	038	0	0
V Total cash receipts from financing activities (ADP 035 to 038)	039	0	0
1 Cash payments for the repayment of credit principals, loans and other
borrowings and debt financial instruments	040	0	-373.856
2 Cash payments for dividends	041	0	0
3 Cash payments for finance lease 4 Cash payments for the redemption of treasury shares and decrease in	042	-129.833	-90.909
initial (subscribed) capital	043	0	0
5 Other cash payments from financing activities	044	-490.000	-1.282.721
VI Total cash payments from financing activities (ADP 040 to 044)	045	-619.833	-1.747.486
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045)	046	-619.833	-1.747.486
1 Unrealised exchange rate differences in respect of cash and cash equivalents	047	0	0
D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP 020+034+046+047)	048	-2.436.562	-1.300.108
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE	049	3.574.350	2.710.246
PERIOD F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD(ADP 048+049)	050	1.137.788	1.410.138

STATEMENT OF CHANGES IN EQUITY

for the period from 1.1.2020 to	31.3.2020															in HRK
								Attributable to owners of the parent								Minority (non
Item	ADP code	Initial (subscribed) capital	Capital reserves	Legal reserves	Reserves for treasury shares	Treasury shares and holdings (deductible item)	Statutory reserves	Other reserves	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	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			84.195.807	408.554	800.000	0		0 0	57.678.142		0	0 0	-169.386.013	61.767.391
1 Balance on the first day of the previous business year 2 Changes in accounting policies	01 02	19.016.430 0	0	0		0 0		0 0	0		0	0 0	0	0	54.480.311 0	0 0	54.480.311 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	84.195.807	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	05	0	0	0		0 0		0 0	0		0	0 0	0	-7.778.119	-7.778.119	0	-7.778.119
6 Exchange rate differences from translation of foreign operations 7 Changes in revaluation reserves of fixed tangible and intangible assets	06	0	0 0	0 0		0 0 0 0		0 0 0 0	0 -745.958		0 0	0 0 0 0	0 745.958	0 0	0	0	0
8 Profit or loss arising from subsequent measurement of financial assets available for	07	0													0	0	0
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	13	0	0	0		0 0		0 0	0		0	0 0	26.433	0	26.433	0	26.433
14 Tax on transactions recognised directly in equity	14	0	0	0		0 0		0 0	0		0	0 0	167.758	0	167.758	0	167.758
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 21 Transfer to reserves according to the annual schedule	20 21	0 0	0 0	0 0		0 0 0 0		0 0 0 0	0 0		0 0	0 0 0 0	0 61.767.391	0 -61.767.391	0 0	0 0	0 0
22 Increase in reserves arising from the pre-bankruptcy settlement procedure	22	0	0	0		0 0		0 0	0		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	408.554	800.000	0		0 0	56.932.184		0	0 0	-106.678.473	-7.778.119	46.896.383	0	46.896.383
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	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 PREVIOUS PERIOD (ADP 05+24)	25	0	0	0		0 0		0 0	-745.958		0	0 0	940.149	-7.778.119	-7.583.928	0	-7.583.928
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	61.767.391	-61.767.391	0	0	0
Current period
1 Balance on the first day of the current business year	27	19.016.430	84.195.807	3.496.923	800.000	0		0 0	54.675.895		0	0 0	-107.016.281	-14.143.751	41.025.023	0	41.025.023
2 Changes in accounting policies	28	0	0	0		0 0		0 0	0		0	0 0	0	0	0	0	0
3 Correction of errors 4 Balance on the first day of the current business year (restated) (ADP 27 to 29)	29 30	0 19.016.430	0 84.195.807	0 3.496.923	800.000	0 0 0		0 0 0 0	0 54.675.895		0 0	0 0 0 0	0 -107.016.281	0 -14.143.751	0 41.025.023	0 0	0 41.025.023
5 Profit/loss of the period			0	0		0 0		0 0	0		0	0 0	0	-4.512.917
6 Exchange rate differences from translation of foreign operations	31 32	0 0	0	0		0 0		0 0	0		0	0 0	0	0	-4.512.917 0	0 0	-4.512.917 0
7 Changes in revaluation reserves of fixed tangible and intangible assets	33	0	0	0		0 0		0 0	-750.562		0	0 0	750.562	0	0	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	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	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 14 Tax on transactions recognised directly in equity	39 40	0 0	0 0	0 0		0 0 0 0		0 0 0 0	0 0		0 0	0 0 0 0	0 164.757	0 0	0 164.757	0 0	0 164.757
15 Increase/decrease in initial (subscribed) capital (other than from reinvesting profit and other than arising from the pre-bankruptcy settlement procedure)	41	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	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 21 Transfer to reserves according to the annual schedule	46	0	0 0	0 0		0 0 0 0		0 0 0 0	0 0		0 0	0 0 0 0	0 -14.143.751	0 14.143.751	0	0	0
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
23 Balance on the last day of the current business year reporting period (ADP	49	19.016.430	84.195.807	3.496.923	800.000	0		0 0	53.925.333		0	0 0	-120.244.713	-4.512.917	36.676.863	0	36.676.863
30 to 48) 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	-750.562		0	0 0	915.319	0	164.757	0	164.757
II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP 31+50)	51	0	0	0		0 0		0 0	-750.562		0	0 0	915.319	-4.512.917	-4.348.160	0	-4.348.160
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	-14.143.751	14.143.751	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: 01.01.2020.-31.03.2020

Notes to financial statements for quarterly periods include:

The same accounting policies are applied when preparing the financial statements for the quarterly period as in the last annual financial statements.

Since the audit of the annual financial statements has not been finalized by the time the quarterly financial statements are published, there is a possibility that upon completion of the audit and publication of the annual financial statements, the quarterly reports will differ from those published.