annual unaudited report for the fiscal year 2015

Biograd na Moru, February 2016

Speech by Goran Ražnjević, President of the Management Board, directed to the Company's Shareholders 4
Overview of key performance indicators in the year 2015 7
Key events and information for the year 2015 8
General details 12
Chronological overview of the Company development 13
Company's bodies 17
Company's subsidiaries 18
18
Ownership structure of the Company as at 31/12/2015 and trading in the Company's shares at the Zagreb Stock Exchange in 2015 20
Capacities 26
Operating results 33
Investments 63
Business expectations and development plan in the year 2016 64
66 Long-term development plan of the Company
67 Operational risks of the Company
68 of the Company
71
72 Sustainable development and corporate social responsibility
76 Human Resources
78 Other
79 Notes
80 Financial statements for the period from 01/01/2015 to 31/12/2015
90 Representation letter by responsible statements

1.speech by goran ražnjević, president of the management board directed to the company's shareholders

Dear shareholders,

In 2015 according to all key performance indicators, physical and financial ones, Ilirija d.d. achieved growth in the operating results, not only at the level of the whole Company, but also at the level of all its sectors (hotel industry, nautics, camping, destination management company DMC Ilirija Travel, hospitality). Therefore we find the last financial year of the Company far the most successful since its inception. In addition to achieving significant business results, the year 2015 was marked by two important corporate events: (i) successfully completed process of recapitalization of the Company and (ii) a significant progress made by the Company in the Croatian capital market and its opening up to the investment public - transfer and the listing of the shares onto the Official Market of the Zagreb Stock Exchange, the most transparent market segment on the domestic capital market. By means of the process of recapitalization, Allianz ZB d.o.o., the company for managing the mandatory pension fund acquired a 10% equity share in the Company.

These corporate event commit the Company to show a significantly higher level of transparency and excellence in business operations not to you, the shareholders, but also to the investment community and the general public, which is for the company a significant step forward in strengthening its capital and market position, encouraging and ensuring the prerequisites for future capital investments for a wider range of potential investors in their securities. The process of recapitalization of the Company has further resulted in an increased level of transparency in its operations, which has been pronounced so far as well, not only towards the investment, but also the general public, while strengthening its development philosophy and strength in tourism and hospitality business.

Having made the right business decisions in the past period, which contributed to the growth of competitiveness in the demanding Mediterranean tourism market, for over 15 years in a row the Company has ensured stability, continued growth of revenues, development of products and services, maintaining and increasing the quality thereof and every year it records the growth of profitability and cost efficiency and all Company's performance indicators.

As a company, we have opted for high quality tourism and standards, implementation of the latest standards of the tourism industry in parallel with environmental and sea standards, as the most important tourism resources, in accordance with the principles of sustainable development, but mainly owing to the continuous development of new tourism products, which enables us, as the company in a challenging and an uncertain international tourism market, despite a much lower competitiveness of the Croatian tourism burdened by numerous parafiscal levies and higher taxes, the growth of competitiveness and consequently the growth of key physical and financial operating results. In 2015, the company recorded 614,360 overnight stays in their establishments, which is a rise by 2% compared to the year 2014, with a particular emphasis on the camping sector in which we recorded 11% more overnight stays, while the hotel industry sector remained at the level of 2014. In the nautical sector the overnight stays do not constitute the basis of business, but these are rather contractual and transit berth and other supplementary services as a complementary activity of the marina. The growth of physical operating indicators is the result of raising the quality of services and amenities, introducing new products and services on the market and the significant market and marketing activities at the level of all sectors and on all major source markets as well as opening new markets.

The growth of operating or physical operating indicators was followed by the growth of financial key performance indicators. Total revenues increased by 4.29% as a result of growth in operating revenues by 4.38%, that is, revenues from sales amounting to HRK 125,275,837.54, which increased by 5.28% and account for 98.55% of all operating revenues. Despite the more difficult economic situation and business conditions, the Company realized the growth in revenues from sales in the domestic market by 6%, while the growth in revenues from sales on the foreign market increased by 4%.

In 2015, the Company directed a special attention at all levels of operations to the more efficient management, planning and control of operating expenses resulting in a decrease in operating expenses by 1.28% and financial expenses by 24.74% and maintaining total expenditures at the level of the year 2014.

The increase in operating revenues and retention of total operating expenditures at the level of 2014 resulted in the generation of the operating profit in the amount of HRK 42,548,994.21, which is an increase by 17.78% or HRK 6,424,013.46 compared to the operating profit in 2014. At the same time the profit amounting to HRK 25,510,509.44 was generated, which is an increase by 25.14% or HRK 5,125,394.32 compared to the year 2014 when it amounted to HRK 20,385,115.12.

The financial position indicators of the Company as of 31/12/2015 (the value of assets, total liabilities, equity and reserves) indicate the results of fifteen-year continuous and stable business growth and sustainable development successfully implemented by the Company at all operational levels. The value of the assets in the period observed increased compared to 2014 by HRK 6,147,484.61 or 1.98%, the total liabilities amount to HRK 96,706,510.04 HRK and decreased by HRK 36,147,106.60 or by 27.32% as a result of the decrease in the liabilities owed to financial institutions, while the Company's capital amounts to HRK 220,353,306.88 HRK and increased by HRK 42,494,591.21 or by 23.89%.

We are aware of the fact that only sustained investments can ensure a quality tourism product competitive on the international and domestic market. In accordance with the annual plan of investment in 2015, the Company invested a total of HRK 14,115,336.73 in all four sectors of the Company (nautics, hotel industry, camping DMK Illyria Travel) in order to enhance the level of the existing services and facilities and to increase the scope of the current supply and launch new products in the tourism market which is inclined to ILIRIJA d.d. In 2015, Villa Primorje **** was introduced to the market , in the camping sector the investment was made in the purchase of new mobile homes and their complete equipment, and further landscaping of the camp to the level of the arboretum and its further infrastructural development. At the same time, in the hotel industry sector, the investment was made in additional equipment and refurbishment of hotel rooms and shared facilities.

The Company has invested significant resources in technological equipment, refurbishment and overall increase of the congress facilities. As a result of these investments Ilirija can provide conference services for up to 900 persons, which is a significant step forward of the Company in the congress and MICE market, but also one of the best quality extension of the tourist season, a successful and profitable year-round business, with a particular emphasis on the shoulder season. In addition, the Company has in its sales and marketing activities developed a special segment of innovative and complementary tourist supply that has been presented to the market by the destination management company (DMK) Ilirija Travel intended for the emerging market of experience and special interest tourism, especially important for achieving better business results in shoulder season.

In addition to the outstanding operating results, am I particularly proud that Ilirija d.d. is today recognized as a socially responsible company, not only by its owners and you shareholders, but also by all our employees and the local community, that binds us in the future to conduct responsible business operations, preserve jobs, achieve growth in revenues, improve services, increase the market share and expand into the new markets.

I thank all the shareholders who have given us confidence and especially I thank the employees for their contribution to the achievement of the recent operating results.

2. overview of key performance indicators in the year 2015

(in HRK)	2015.	2014.	Index 2015/2014
Total revenues	128.146.512,63	122.873.752,12	104,29
Revenues from sales	125.275.837,54	118.988.217,72	105,28
Operating profit	42.548.994,21	36.124.980,75	117,78
EBITDA	37.767.176,96	33.211.137,28	113,72
EBIT	29.541.195,94	25.740.918,49	114,76
Profit	25.510.509,44	20.385.115,12	125,14
Value of assets	317.059.816,92	310.912.332,31	101,98
Capital	220.353.306,88	177.858.715,67	123,89
Total liabilities	96.706.510,04	133.053.616,64	72,68
Market capitalization	274.286.000,00	187.039,500,00	146,65
DPS	15,00	15,00	100,00

3. key events and information for the year 2015

1. The payment of the dividend to the Company's shareholders in the gross amount of HRK 15.00 per share has been approved.
1. The share capital of the Company increased from the reinvested profit from the year 2014 by increasing the nominal value of the share by HRK 50.00 from HRK 500.00 per share to the nominal amount of HRK 550.00 per share.
1. The recapitalization of the Company was successfully completed by Allianz ZB d.o.o., the company for the management of the mandatory pension fund with the registered office in Zagreb, which hereby acquired 10% of share in the ownership of the Company, by issuing 24,900 new shares of nominal value of HRK 550.00 that were issued at a price of HRK 875.00 per share or in the total amount of HRK 21,787,500.00. In this way, the share capital of the Company increased for the second time in the fiscal year from the amount of HRK 137,162,300.00 to HRK 150,857,300.00 divided into 274,286 shares. Upon the completion of the process of recapitalization, the Company

has turned a new page of the market, financial, stock behavior and development corporate philosophy looking up to the common international business practice.

1. Ordinary shares of the Company, designated ILRA-R-A, shall be transferred/listed into the Official Market of the Zagreb Stock Exchange, according to which we are second tourist company in Croatia on this stock exchange listing, which commits us to show a much higher level of transparency and accountability not only to the general public, but also particularly to the investors.
1. The appointment of Mr. Goran Ražnjević as the sole member of the Management Board of the Company for the fourth time in a row for a 5 years' term of office.
1. The overnight stays in the Company's facilities increased by 2% compared to 2014 with the largest increase in physical turnover in the camping sector by 11%.
1. The increase in revenues by 4.29% from HRK 122,873.752.12 as they amounted in the year

2014 to the amount of HRK 128,146,512.63 as realized in the year 2015.

1. The increase in operating revenues by 4.38% from HRK 121,792,647.35 as they amounted in 2014 by the amount of HRK 127,122,379.61 in 2015 as a result of increased revenues from sales by 5.28% from the amount of HRK 118, 988,217.72 as much as the revenues from sales amounted in 2014 to the amount of HRK 125,275,837.54 in 2015, or the increase in the revenues from sales in the absolute amount of HRK 6,287,619.84.
1. The decrease in operating expenses by 1.28% from the amount of HRK 85,667,666.60 as they amounted in 2014 to the amount of HRK 84,573,385.40 as a result of more efficient managing the expenses at all levels of the operations.
1. The increase in operating profit or profit from the business activities of the Company from HRK 36,124,980.75 to HRK 42,548,994.21, or by 17.78% was followed by an increase in profit before tax from HRK 20,385,115.12 as it amounted in 2014 to HRK 25,510,509.44, which is an increase by 25.14% or HRK 5,125,394.32

as a result of an increase in total revenues and retention of total expenditures at the level of 2014, while reducing operating expenses at the same time.

1. A significant increase in total revenues in the camping sector by 9%, as a result of an increase in the number of overnight stays and the number of mobile homes, and increase in revenues in the nautical sector by 2% where increased revenues were generated from boat events.
1. The realized EBITDA in 2015 amounted to HRK 37,767,176.96, which is an increase by 13.72%, while the EBIT was realized in the amount of HRK 29,541,195.94, which is an increase by 14.76% compared to the year 2014.
1. A significant decrease in the total liabilities of the Company by 27.32% from HRK 133,053,616.64 as they amounted in 2014 to HRK 96,706,510.04, or HRK 36,347,106.60 in 2015 as a result of reduction of loan liabilities owed to financial institutions.
1. In the same accounting period, the value of the assets increased by 1.98% or by HRK 6,147,484.61 or from HRK 310,912,332.31 as it amounted in the year 2014 to a total of HRK

317,059,816.92 in the year 2015.

1. In 2015, the capital increased by 23.89% or HRK 42,494,591.21 or from HRK 177,858,715.67 as it amounted in the year 2014 to HRK 220,353,306.88 in the year 2015.
1. The increase in the market capitalization by 46.65% or by HRK 87,246,500.00 from the amount of HRK 187,039,500.00 as it amounted in 2014 to the amount of HRK 274,286,000.00 in 2015.
1. The increase in the total turnover of the Company 3.67%, from HRK 4,359,528.24 as it amounted in the year 2014 to HRK 4,519,484.44 realized in the year 2015.
1. The increase in the average price of shares by 49.14% from HRK 597.93 as it amounted in the year 2014 to HRK 891.77 in the year 2015.
1. The increase in the latest price of share by 33.33%, that is, from HRK 750.00 as it amounted in the year 2014 to HRK 1,000.00 as much as the latest price of the share was in the year 2015. In 2015, the share reached the highest single price in the amount of HRK 1,100.00 per share.
1. The continuation of continuous investments in

accommodation facilities, improvement of the service, supply and amenities in all sectors of the company, of which we particularly point out the opening of Villa Primorje****, built in the second half of the 19th century, today luxuriously furnished and equipped to the latest standards for the facilities of its kind and category, with its own restaurant and a Mediterranean garden. The beginning of the first phase of reconstruction of the coastal part of the Port of nautical tourism "Marina Kornati", according to the non-appealable building permit, class: UP/I-361-03/15-01/000111, Reg. No. 531- 06-2-1-1467-15-0008, as of 20/10/2015, that judging by the achieved business results as well as the entire supply represents the backbone of the development of nautical tourism and nautical activity not only for the company but also for the Zadar County and the Croatian tourism in general.

Marina Kornati, is the leading boating and regatta center in Croatia, in the waters of which some 39 national and international boat events (regattas of all classes) took place with up to 4,980 sailors from around the world that participated in such events. We especially recommend the Engineering Challenge Cup (ECC), which brings together managers and employees of the world's leading engineering companies, which was attended by 54 teams with 350 sailors from 30 countries.
1. In October, the 17th international boat fair Biograd Boat Show took place, which is organized and hosted by the Company in Marina Kornati in Biograd na Moru, which has become the major event for the nautical tourism and boating industry, which in 2015 was visited by a record 307 exhibitors with more than 300 vessels, 14 premier vessels, over 15,000 visitors and 2,000 realized business visits, by which this boat event not only retained a continuous growth, but also the position as the leading international boat show in Croatia and southeast Europe among the fairs that are held in the water. Biograd Boat Show has been awarded the gold member status by the International Federation of Boat Show Organisers (IFBSO) thanks to the adoption of high standards of the organization and participation in the further development of the association, sharing its unique business model and innovative solutions.
1. Prizes, awards, standards and certificates in 2015:

prizes and rewards:

Awards by the Ministry of Maritime Affairs, Transport and Infrastructure to the Company for promoting maritime culture for the organization of the Biograd Boat Show.

"Park Soline" camp is the winner of the following awards: Croatia Best Campsite, awarded by the Croatian Camping Association to the Croatian camps that are distinguished by the quality of their service, amenities and supply, the results achieved and concern for the environment; Naj kamp Adria 2015 for second place in the category of the Best large camp of Dalmatia, award by the leading Slovenian camping portal Autokamp.si that promotes camping tourism. The award is especially significant because it is awarded by the guests themselves who have stayed in Croatian camps that evaluate the following elements: camping plot, decoration, sanitary facilities, sports and other amenities, value for money. Marina Kornati in the "Tourist flower - Quality for Croatia" action was awarded the second place in the category "Best big marina".

certificates:

Camp "Park Soline" is the holder of the international environmental certificate Ecocampig as one of only six camps in Croatia, while in the hotel sector the hotel Ilirija **** was awarded the basic certificate "Sustainable Hotel"

standards:

Introduction and implementation of HALAL quality in the hospitality facilities of the Company.

4. general details

ILIRIJA d.d. is a public joint stock company registered for hospitality and tourism with registered office in Biograd na Moru, Tina Ujevića 7, that has been active in the Croatian tourist market for already 59 years. The business operations of Ilirija d.d. is based on the principles of corporate social responsibility as an integral part its corporate values. In its business operations, the Management Company applies the Code of Corporate Governance of the Zagreb Stock Exchange and HANFA. The data on the operations are public and transparent, and at all times available to all national, financial and other institutions, shareholders, banking institutions, funds, associations, business partners, institutional, individual and other investors in the regulated capital market in the Republic of Croatia.

In its business operations, the Company covers all key segments of the Adriatic Mediterranean tourism supply that is: hotel industry (hotels: Ilirija****, Kornati****, Adriatic***, Villa Donat****/***, Villa Primorje****, diffuse hotel Ražnjevića Dvori AD 1307****), nautical sector (Marina Kornati and hotel port Ilirija-Kornati), camping (camp "Park Soline"****), hospitality (restaurant "Marina Kornati" restaurant "Park Soline", beach bar "Donat", "Lavender lounge bar"), destination management company DMC Ilirija Travel, Arsenal in Zadar, Central sports park Soline with 20 tennis courts and caffe bar, Aquatic Centar with the hospitality facility and event ship "Nada", a floating convention center with multifunctional purposes, 36m in length and a capacity to accommodate 180 persons.

Its business is based on providing services by using its capacities (hotel, boat, camping) at the same time providing additional amenities and services, thus creating a high-quality integrated and complementary tourism product in the domestic and international tourism market, presented under the brand Ilirija Travel. Destination management company was established as a result of the modern tourism demand, conditioned by the technological, social, market factors and trends of ever more demanding customer or market.

5. CHRONOLOGICAL OVERVIEW OF THE COMPANY DEVELOPMENT

Year 1957 | The Company was incorporated and domiciled in Biograd na Moru, where it operates today, entire Biograd Riviera, by which the Company becomes the pioneer and the leader of all tourism activities in the Biograd region.

1969 – 1972 | The construction of new hotel facilities (Hotel Kornati **** and Hotel Adriatic ***), the overall reconstruction and construction of hotels Ilirija**** and building an annex to the hotel Villa Donat **** / *** in Sv. Filip and Jakov.

Year 1976 | located in Biograd na Moru, with a total of 150 berths and the sels, by which the Company becomes a pioneer of the nautical tourism development.

Year 1986 | Extended nautical capacities of the Company by constructing the nautical tourism Port Marina Kornati, located in Biograd na Moru, with total port area (aquatorium) of 131.600 m with a total capacity of 704 berths on land and sea. Today, Marina Kornati is among the Top 3 Croatian marinas according to the number of berths, technical equipment, quality of service, cleanliness and neatness. 2

Year 1988 | The construction of Tennis center, located in a pinewood Soline right next to the old town center Biograd na Moru (400m from the hotel, 150m from the main beach), on an area of 48.000 m2 with 20 tennis courts (14 clay and 6 color-set tennis courts).

Year 1988 | The construction of Aquatic Center, which is basically an Olympic swimming pool with many additional amenities as a supplement to the basic hotel amenities. Except as a sports facility, it was also built as an entertainment and catering facility with bleachers with the capacity of 4,000 seats and a terrace of 1,000 m , which is a center for holding almost all sports, entertaining and dance events in the city . 2

Year 1991 | By merger the campsite "Soline", located in Biograd na Moru, later renamed into the camp "Park Soline", by which the Company in its operations in addition to hotel management and nautics also included camping as the third segment of its tourism offer.

Year 1993 | The Croatian Privatisation Fund, makes a decision on the transformation of HTP Ilirija into a joint stock company.

Year 1999 | The Company was privatized and is in major ownership of the company Arsenal Holdings d.o.o. from Zadar, which is in major ownership of Mr. Davor Tudorović.

Year 1999 | The Company starts boat show organized as Spring Open Days, mainly intended for companies

Wishing for Biograd na Moru, to win the top boat event considering its status of the city as a cradle of nautical tourism, at which all sectors of the boating and charter business will be presented in a short period, the Open Days grew into a boat event - Biograd Boat Show.

1999 – 2015 | During this period, the Company invested HRK 345,152,398.82 in construction, reconstruction, extension, building annexes, renovation and adaptation of accommodation facilities and establishments of the Company to enhance the quality, improve the overall service and standards in all sectors of the Company, develop new products, improve and increase the categorization of accommodation facilities and nautical capacities, expand hospitality facilities with an aim to create a high-quality, distinctive and competitive tourism product and enhance the quality of the tourism supply of the destination itself, which resulted in the growth of total revenues by 10.13 times and newly created value in the mentioned period in the amount of HRK 554,185,700.83.

Year 2002 | The National Audit Office carried out the audit of transformation and privatization of ILIRIJA d.d. and issued an unqualified opinion on the transformation and privatization in full, with an emphasis that the process was carried out in accordance with the legislation and that no irregularities were determined that would affect the legal implementation of the process of transformation and privatization.

Year 2003 | The Company's shares were listed on the Zagreb Stock Exchange in the quotation of public joint stock companies.

Year 2005 | As part of the Company's business system, the multimedia center Arsenal in Zadar, built in the 17th century at the time of the Venetian Republic, following the completion of the revitalization and renewal according to the concept of "indoor town square," began conducting business activities.

Year 2009 | The Company's shares are listed on the Regular Zagreb of the Stock Exchange, since the quotation of public joint stock companies was cancelled.

Year 2014 | The market was presented the event yacht "Nada" floating convention center with multifunctional purposes 36m in length and a capacity to accommodate 180 persons.

Year 2014 | As a part of the Company's business system, the first Croatian diffuse hotel Ražnjevića dvori AD 1307 was opened.

Year 2015 | Renovated Villa Primorje****, built in the second half of the 19th century, luxuriously decorated and equipped in line with the latest standards for facilities of its kind and category, has its own restaurant that offers the possibility of organizing a number of events.

Year 2015 | Recapitalization of the company by Allianz ZB d.o.o., the company for mandatory pension fund management, with headquarters in Zagreb, which has acquired 10% equity share in the ownership of the company.

Year 2015 | The company's shares are transferred from the Regular market of the Zagreb Stock Exchange which will contribute to even greater transparency and openness of the company to all of its stakeholders, particularly investors, both domestic and international capital markets.

6.company's bodies 2.1 company management board

Goran Ražnjević, President of the Management Board represents the company solely and independently

2.2 supervisory board

Goran Medić, President of the Supervisory Board David Anthony Tudorović, Deputy President of the Supervisory Board Davor Tudorović, Member of the Supervisory Board Siniša Petrović, Member of the Supervisory Board Darko Prebežac, Member of the Supervisory Board

2.3 shareholders' assembly

7. COMPANY'S SUBSIDIARIES

The Company has two subsidiaries in 100% ownership: ILIRIJA GRAĐENJE d.o.o. ILIRIJA NAUTIKA d.o.o. (not active in business)

8. AFFILIATED COMPANIES

Arsenal Holdings d.o.o., Perivoj Gospe od Zdravlja 1, Zadar, Company Tax Number - OIB: 59794687464, holds 178.629 shares in the Company, which accounts for 65.13% of the shares in the share capital of the Company, and the same number of votes in the Shareholders' Assembly.

The parent company Arsenal Holdings d.o.o. is registered with the Commercial Court in Zadar, Company Reg. No. MBS: 060014554; share capital HRK 21,027,500.00 paid in whole.

The major owner of the company Arsenal Holdings d.o.o. is Mr. Davor Tudorović with 75.25% shares in its share capital, who also holds 4.36% shares in the share capital of the company Ilirija d.d.

ownership structure of the company as at 31/12/2015 and trading in the company's shares at the zagreb stock exchange in 2015

The share capital of the Company is HRK 150,857,300.00 and is divided in 274,286 ordinary shares with nominal value of HRK 550,00.

In the period from 01 January to 31 December 2015 a change was made in the ownership structure as a result of successful completion of a recapitalization by the company Allianz ZB d.o.o., the company for mandatory pension fund management with the headquarters in Zagreb, by issuing 24,900 new ordinary shares, with nominal value of HRK 550.00, designated as: ILRA-R-A, ISIN: HRILRARA0009, at the price of HRK 875.00 per share, on behalf of the funds managed by it.

Overview of the ten major shareholders of the Company as at 31/12/2015:

Owners - shareholders	No. of shares	Share in %
Arsenal Holdings d.o.o. Zadar	178.629	65,13
Goran Ražnjević	25.317	9,23
Societe Generale –Splitska banka d.d./AZ OMF category B	17.900	6,53
Davor Tudorović	11.968	4,36
Societe Generale –Splitska banka d.d./AZ compulsory pension fund category A	9.529	3,47
CERP/The Republic of Croatia	9.275	3,38
Goran Medić	5.000	1,82
Željko Karabatić	2.372	0,87
Zoran Bogdanović	1.200	0,44
Ilirija d.d. treasury shares	724	0,26
Other minor shareholders	12.372	4,51
TOTAL	274.286	100,00

trading in shares of the company on the croatian capital market in the year 2015:

On 28 October 2015 in addition to the transfer of 249,386 ordinary shares of the Company onto the Official Market of the Zagreb Stock Exchange, which were previously listed on the Regular market, there are also 24,900 newly issued shares of the Company that are listed on the Official Market, thereby having all the ordinary shares of the Company or a total of 274,286 quoted on the Official market. The same date, namely, 28 October 2015, is also the first day of trading in financial instruments of the Company on the Official market.

(Amounts in HRK)	I-XII 2015	I-XII 2014	% changes
Total sales	4.519.484,44	4.359.528,24	3,67
Average share price	891,77	597,93	49,14
Average turnover per transaction	22.597,42	22.824,76	-1,00
Latest share price	1.000,00	750,00	33,33
Market capitalization	274.286.000,00	187.039.500,00	46,65

In 2015, continuous trading in shares of ILIRIJA d.d. on the Regulated market of the Zagreb Stock Exchange was recorded. In the period from 01 January 2015 to 31 December 2015, a total of 5,068 shares of the Company were traded in, of which total turnover amounted to HRK 4,519,484.44 with an average price of one share of HRK 891.77, which is an increase in turnover by 3.67% compared to the year 2014 and an increase in the average share price by 49.14%. In 2015, the share reached the highest single price in the amount of HRK 1,100.00 per share.

Comparing the latest share price in 2015, the price rose by HRK 750.00 compared to latest share price in 2014 , and so achieved a growth of 33.3%. The market capitalization of the Company as of 30/12/2015 amounted to HRK 274,286,000.00 as compared to 2014 when the market capitalization amounted to HRK 187,039,500.00 which is a growth of 46.65%

In the reporting period, the Company acquired 20

treasury shares and on 31/12/2015 it held 724 treasury shares, which make for 0.26% of the share in the share capital and the same percentage of votes in the Shareholders' Assembly.

Movement in share price of Ilirija d.d. in the year 2015

Comparison of movement in the share price of Ilirija d.d. with indices of CROBEX and CROBEXTURIST

The comparison of the movements of the exchange rate of the share ILRA-R-A at the Zagreb Stock Exchange in 2015 to the CROBEX index and CROBEXTURIST index, consisting of the shares of the tourism companies listed on the Stock Exchange, shows a higher growth of this share than in the both indices. The CROBEX index, as a relevant indicator of the exchange rate of the most liquid shares of all economic activities in the Republic of Croatia fell by 4% in late 2015 in comparison to the beginning of the year, while the CROBEXTURIST index rose by 25.1%. During the same period, the exchange rate of the share of the company Ilirija d.d. rose by 33.3%.

In the last two years (in 2014 and 2015) the price of the Company share ILRA-R-A rose by 153,1%, CROBEXTURIST index rose by 124.9%, while the CROBEX index fell by 9,1%. The fact that the market capitalization of the company Ilirija d.d. has increased by more than 50% suggests that the investors have recognized the quality and potential of the Company.

company's capacities Portfolio of ILIRIJA d.d. consists of six hotels and villas, marina Kornati with Hotel port Ilirija-Kornati, camp "Park Soline," Arsenal in Zadar, Central sports park Soline, Aquatic center and hospitality facilities. The added value to the "heart" of our offer is granted by the event boat "Nada", a convention center with multifunctional purposes and event yacht with 180 seats, a complete restaurant, kitchen and a bar which provides an excellent hospitality service during the voyage.

Hotel sector capacity consists of 449 accommodation units (hotel rooms and apartments) with a total of 929 beds located in Biograd na Moru (Ilirija****, Kornati****, Adriatic***, Villa Primorje****), Sv. Filip i Jakov (hotel Villa Donat***/****) and Polači (diffuse hotel Ražnjevića dvori****), mainly classified as four star hotels.

Hotel accommodation is located in Ilirija Resort Hotels & Vilas in Biograd and Sv. Filip i Jakov. The hotels are located along the coast, not far from the town center and beach that is awarded the Blue

Flag, which are owing to the ideal location and infrastructure, intended for leisure and congress tourism. In addition to modern and technically equipped conference halls and meeting rooms intended for conferences, seminars, presentations, workshops and meetings, there are a number of supporting amenities such as Wellness & beauty center Salvie, Polympic and outdoor swimming pool, a fitness center, a'la carte restaurants and coffee bars.

As part of Ilirija Resort there is a conference center that consists of 8 halls with a total capacity to accommodate 30 to 250 persons, and there is also a magnificent garden with terraces ideal for banquets, receptions and entertainment, outdoor swimming pools and beach.

ILIRIJA RESORT HOTELS & VILLAS

, the largest hotel in the Ilirija ity of 165 rooms and 337 beds, which includes a restaurant with 200 seats, terrace with 70 seats and aperitif bar with 50 seats, located by the sea, close to the old town, and is surrounded by the beautiful nature, sea and pinewood and numerous amenities as well. HOTEL ILIRIJA HOTEL ADRIATIC

with the capacity of 106 rooms and 216 beds, a restaurant with capacity for 220 persons, a terrace for 50 persons and a bar for 40 persons, by its design and atmosphere is linked to and associated with the most beautiful Croatian national park – Kornati. Kornati Hotel is a unique for its connection with the Nautical Tourism Port Hotel Port Ilirija - Kornati, which is located in the very center of Biograd with a beach right next to the hotel. HOTEL KORNATI

tel, with capacity of 100 rooms and 210 beds, a restaurant with capacity for 230 persons, a terrace for 300 people and a bar with a capacity for 110 people, located in a pinewood, almost right on the beach with Aquatic center right next to it which is ideal for family entertainment and for a range of attractive sea summer activities.

In 2015, the market was presented with , built in the second half of the 19th century, is a typical traditional Dalmatian stone nobleman's house with the farm building. Newly renovated, luxuriously decorated and equipped in line with the latest standards for facilities of its kind and category, it has its own restaurant that offers the possibility of organizing a number of events and the Mediterranean garden with a promenade. HOTEL VILLA DONAT

located in St. Filip a three star hotel. The total has a total capacity of 72 rooms and 144 beds, a restaurant with 120 seats, a terrace for 50 persons and aperitif bar for 20 persons. The hotel is located near the main beach and the town center which reminds of the rich history of this region. VILLA PRIMORJA ****

marina kornati

Nautical sector began to develop in 1976 with the construction of the first marina in Croatia (Hotel port Ilirija-Kornati) with 150 berths and the procurement and organization of the first own charter fleet in the Adriatic sea with more than 40 vessels for the needs of boaters, therefore Ilirija d.d. deserves to be considered to be a pioneer of nautical tourism at the Adriatic sea.

Today, the nautical sector of the Company consists of Kornati marina and Hotel port Ilirija-Kornati, in which the Company has 850 berths on sea and land, which in one day can accept up to 2,000 sailors, but by the number of berths, modern technical equipment, quality of service, cleanliness and neatness (Blue Flag) the Kornati marina is one of the three leading Croatian marinas which annually attracts more than 60,000 sailors.

marina kornati is the winner of numerous awards, where we wish to emphasize the Special Award in the "XVI. Tourism Flower - Quality for Croatia 2012" action, organized by the Croatian Chamber of Commerce and the Croatian Radio and Television, which is an award for the best marina in the category of over 450 berths. In 2013, in the "XVII. Tourism Flower - Quality for Croatia 2013" action, it received an award in the competition of the largest marinas, while in the same action in 2014 and 2015 it ranked second in the "Best big marina" category.

ILIRIJA d.d. is the organizer of the leading boat show in Croatia "BIOGRAD BOAT SHOW" which has been continually held in Marina Kornati for 17 years in a row.

CAMP PARK SOLINE

camping, also located in Biograd na Moru covers an area of 20.00 Ha, contains 1,123 accommodation units with a total capacity to accommodate up to 3,300 persons. In addition to the enriched restaurant offer, newly built promenade that stretches along the entire camp and the beach leading to the Biograd town center, the camp "Park Soline" is the right choice for a family vacation. In addition to entertainment for children and evening entertainment, active holiday with attractive sports, you can relax walking along the long walking trails and recreational routes in a healthy environment, and the camp is an excellent choice for all nature lovers. The value of investments made so far in the camp "Park Soline" since the year 2000 amounted to approximately HRK 155,000,000.00 and owing to these investments, the number of overnight stays rose from 4,556 in 1996 to 260,579 overnight stays in 2015. CAMP PARK SOLINE CAMP PARK SOLINE

Tennis center Ilirija, located in a pinewood Soline near the old city center, covers an area of 48,000 m , consists of 20 tennis courts and multipurpose courts (14 clay and 6 color set tennis courts) with night lighting, restaurant and changing rooms as well as related facilities. 2

ilirija travel

ilirija travel – destination management company: owing to the development of new services and facilities, a high-quality, integrated and complementary tourism product has been created in response to the needs of the modern tourism demand, conditioned by technological, social, market factors and trends of more demanding markets. Among the most important backbones of the offering and implementation of these special programs and products there is the business operation in own additional facilities such as:

event boat "nada" a multifunctional yacht, sized 35m and a capacity to accommodate 180 persons, with a complete restaurant, kitchen and bar which provides an excellent hospitality service during the voyage. Conferences, seminars, special events, unique business meetings, gala receptions and banquets, unique weddings, exclusive day and night cruises, incentive events are all activities organized in the Event boat Nada which adapts to the requirements of an individual customer.

arsenal which is a world heritage site, a multimedia center located in Zadar, built in the 17th century, which was renovated in 2005 as an indoor town square or as the center of public, cultural and entertainment life in the region in which over 100 public and private events are organized on an annual level.

Diffuse hotel ražnjevića dvori,

multi-functional facility, located in the settlement of Polača named after the municipality in this settlement, in the heart of Ravni Kotari, which lies halfway between Biograd na Moru and Benkovac and is the first facility of such a category in the Republic of Croatia. This tourist complex has originated from the rural estate tradition, is an example of innovative tourism product conceived as a blend of tradition and contemporary trends.

additional services and amenities:

hospitality:

Restaurant "Marina Kornati", located in Marina Kornati, having the capacity for over 350 persons, which together with the recently refurbished Captain's Club having the capacity to accommodate 70 persons, or with the overall capacity for 420 persons meets the requirements of boaters for holding various and numerous events in Marina Kornati. Besides hospitality services, Captain's Club also provides services for a number of presentations on nautical products and services, and is an ideal venue for holding small conferences and events. In 2015 a total of 50 events were held in the Marina restaurant which were attended by over 12,830 persons.

Restaurant "Park Soline" is located in "Park Soline"****, close to the sea, ten minutes walk from the center of Biograd na Moru with an offer of food based on Mediterranean cuisine. The restaurant with a capacity to accommodate 280 people offers the possibility of organizing various events - family celebrations, banquets and receptions as well as meetings. The restaurant includes a Dalmatian tavern with a fireplace, coffee bar and taps of wine

decorated as a wine cellar, which offers the possibility of buying and tasting top quality red and white wines produced from native Croatian species.

Beach bar "Donat" is located in the building-magazine located in a protected cultural and historical complex of village Sv. Filip i Jakov settlement, which is also entered in the Register of Croatian cultural monuments, which is now classified as a beach catering facility or beach bar/cocktail bar with capacity to accommodate 140 persons.

Lavender louge bar, located inside of Adriatic hotel, next to the beach, known for its Mediterranean design, fully designed for people to relax, with a beautiful view of the Pašman Channel, a place that offers the possibility of organizing a number of events of different character (MICE, weddings, banquets, cocktail bed bar, night club, etc.).

events: Biograd Boat Show, the largest international autumn boat show in the Republic of Croatia and the largest boat show in South East Europe among the fairs which takes place on the water and brings together all the key representatives of the boating industry and tourism. At the beginning, that is, in the year 1999 the boat show was organized as Spring Open Days, mainly intended for companies that operate in the marina, as the first such event in North Dalmatia. Wishing for Biograd na Moru, to win top boat event considering its status of the city as a cradle of nautical tourism, at which all sectors of the boating and charter business will be presented, the Open Days grew into Biograd Boat Show which has been organized as an autumn boat fair since 2004, which has contributed to the improvement of nautical offer and extension of the tourist season.

Biograd Boat Show was admitted to the International Federation of Boat Show Organisers-IFBSO at the 50th meeting of the Federation that took place in Istanbul, Turkey, in June 2014, and in 2015 it became its gold member. The fairs of former members of

the Federation were mainly organized in the major world centers, and the fact that the Biograd Boat Show is organized in the city of only 5,000 residents makes this success even greater, which is a great recognition not only to the Company as the fair organizer, but also the Croatian boating industry and tourism.

Today the leading international autumn boat show has become major Croatian boat event. From its early beginnings the fair brings together all representatives of the boating industry and tourism, government institutions, umbrella organizations in tourism and boating as well as professional associations. Owing to this partnership with all relevant stakeholders, and now long-term exhibitors and partners, we have developed Biograd Boat Show by listening to their needs, keeping up with trends in the boating and fair industry while implementing our own vision of its development creating a high quality, distinctive, and above all, sustainable economic and tourism product, which since its beginnings further enriches the Croatian tourism supply, especially its post-season.

In 2015 the fair was attended by over 307 registered exhibitors that participated with 300 vessels, while the number of visitors surpassed 15,000 with over 2000 realized business visits.

11. OPERATING RESULTS

PHYSICAL OPERATING RESULTS

In all facilities of the Company, 614,360 overnight stays were recorded in the year 2015, which is a growth by 2% compared to the year 2014. Overnight stays in the establishments of Ilirija d.d., except for overnight stays in the hotel located in Sv. Filip i Jakov, makes for 46.86% of all overnight stays realized in the city of with an exception of overnight stays in private accommodation and summer houses, where overnight stays in our facilities account for 65.6% of organized tourist turnover of the city of Biograd na Moru.

The overnight stays realized in the city Biograd na Moru in 1989, 1999, 2014 and 2015*

*Note: Regarding the overnight stays of Ilirija d.d., excluded are the overnight stays in the destination Sv. Filip i Jakov.

hotel industry sector

In the year 2015, the hotel industry sector recorded 39,327 guests or 3% more guests than in 2014, with an average stay of 3.32 days, with a total of 130,643 overnight stays, almost as much as in 2014. In 2015, a trend of shortening the length of stay of guests was recorded, with an increase in the number of arrivals and hotel occupancy days.

In the structure of overnight stays, the top five source markets represented are (1) the Slovenian market with a share of 17.83% overnight stays, (2) the German market with a share of 13.95% overnight stays, (3) the Croatian market with a share of 13.94 % overnight stays, (4) the Austrian market with 10.30% overnight stays and (5) the Slovak market with 7.58% overnight stays.

The revenues generated in the hotel industry sector are continuously stable, in 2015 they were as high as the revenues in 2014, where all the hotels recorded a growth in average price of overnight stays and total revenues of other business establishments in the hotel industry, with an exception of separated business establishment Villa Donat in Sv. Filip i Jakov, which is extremely seasonal and is located outside of the business establishment Ilirija Resort in Biograd.

The revenue per room sold for the hospitality sector in 2015 amounts to EUR 90.24, or HRK 687.59, which includes the accommodation and food services, since 98% of the hotel activity refers to the half board, which is characteristic for leisure hotels of Ilirija d.d., and along the Croatian part of the Adriatic sea. Taking into account other revenues earned in the hotel industry segment or business establishments as a part of the hotel industry segment, of which revenues are a direct consequence of hotel operations, which account for 10% in relation to direct revenues generated by the hotel, this aggregated revenue per room sold will grow to EUR 98.53, that is, HRK 750.76.

Arrivals and overnight stays per source markets in 2015 and comparison of the years 2014 and 2013

		HOTEL INDUSTRY
		ARRIVALS		INDEX		OVERNIGHT STAYS		INDEX
PROFIT CENTER	2013	2014	2015	15 / 14	2013	2014	2015	15 / 14
Hotel ILIRIJA	16.281	19.376	21.074	109	54.577	57.596	58.575	102
Hotel KORNATI	8.692	10.289	9.299	90	28.134	32.195	31.047	96
Hotel ADRIATIC	5.514	5.125	5.929	116	25.992	25.446	25.906	102
Hotel Villa DONAT	3.044	3.242	3.025	93	14.218	14.938	15.115	101
TOTAL	33.531	38.032	39.327	103	122.921	130.175	130.643	100

Overnight stays per source market in 2015

Capacity occupancy and occupancy days in 2015 and comparison to the year 2014

Percentage

MONTH			ILIRIJA					KORNATI					ADRIATIC					DONAT					GRANDTOTAL
	Total rooms	2014	%	2015	%	Total rooms	2014	%	2015	%	Total rooms	2014	%	2015	%	Total rooms	2014	%	2015	%	Total rooms	2014	%	2015	%
JANUARY (I)	5.115	0	0,00%	0	0,00%	3.286	267	8,13%		681 20,72%	3.100	0	0,00%	0	0,00%	2.232	0	0,00%	0	0,00%	13.733	267	1,94%	681	4,96%
FEBRUARY (II)	4.620	0	0,00%	0	0,00%	2.968		491 16,54%		301 10,14%	2.800	0	0,00%	0	0,00%	2.016	0	0,00%	0	0,00%	12.404	491	3,96%	301	2,43%
MARCH (III)	5.115		595 11,63%		852 16,66%	3.286	260	7,91%		382 11,63%	3.100	0	0,00%	0	0,00%	2.232	0	0,00%	0	0,00%	13.733	855	6,23%	1.234	8,99%
APRIL (IV)	4.950		3.103 62,69%		2.285 46,16%	3.180		483 15,19%		440 13,84%	3.000	0	0,00%	251	8,37%	2.160	0	0,00%	0	0,00%	13.290		3.586 26,98%		2.976 22,39%
MAY (V)	5.115		3.923 76,70%		3.701 72,36%	3.286		1.666 50,70%		1.534 46,68%	3.100		778 25,10%		578 18,65%	2.232	19	0,85%	123	5,51%	13.733		6.386 46,50%		5.936 43,22%
JUNE (VI)	4.950		3.727 75,29%		3.323 67,13%	3.180		2.052 64,53%		2.186 68,74%	3.000		2.226 74,20%		1.952 65,07%	2.160		1.139 52,73%		1.500 69,44%	13.290		9.144 68,80%		8.961 67,43%
JULY (VII)	5.115		4.245 82,99%		4.556 89,07%	3.286		2.824 85,94%		2.931 89,20%	3.100		2.767 89,26%		2.724 87,87%	2.232		1.909 85,53%		1.940 86,92%	13.733		11.745 85,52%		12.151 88,48%
AUGUST (VIII)	5.115		4.779 93,43%		4.665 91,20%	3.286		3.104 94,46%		2.914 88,68%	3.100		2.929 94,48%		2.975 95,97%	2.232		2.015 90,28%		2.008 89,96%	13.733		12.827 93,40%		12.562 91,47%
SEPTEMBER (IX)	4.950		4.211 85,07%		4.041 81,64%	3.180		2.689 84,56%		2.707 85,13%	3.000		2.349 78,30%		2.218 73,93%	2.160		1.246 57,69%		833 38,56%	13.290		10.495 78,97%		9.799 73,73%
OCTOBER (X)	5.115		3.094 60,49%		3.621 70,79%	3.286		1.305 39,71%		1.116 33,96%	3.100		973 31,39%		1.562 50,39%	2.232		380 17,03%		332 14,87%	13.733		5.752 41,88%		6.631 48,29%
NOVEMBER (XI)	4.950		620 12,53%		1.093 22,08%	3.180		344 10,82%	0	0,00%	3.000	0	0,00%	0	0,00%	2.160	0	0,00%	0	0,00%	13.290	964	7,25%	1.093	8,22%
DECEMBER (XII)	5.115	0	0,00%		644 12,59%	3.286		479 14,58%	189	5,75%	3.100	0	0,00%	0	0,00%	2.232	0	0,00%	0	0,00%	13.733	479	3,49%	833	6,07%
TOTAL			60.225 28.297 47,00% 28.781 48,00%			38.690		15.964 41,00% 15.381 40,00%			36.500		12.022 33,00%		12.260 34,00%	26.280		6.708 26,00%		6.736 26,00% 161.695			62.991 39,00%		63.158 39,00%

Occupancy days

MONTH			ILIRIJA					KORNATI					ADRIATIC					DONAT					GRANDTOTAL
	Total rooms	2014	days	2015	days	Total rooms	2014	days	2015	days	Total rooms	2014	days	2015	days	Total rooms	2014	days	2015	days	Total rooms	2014	days	2015	days
JANUARY (I)	5.115	0	0	0	0	3.286	267	3	681	6	3.100	0	0	0	0	2.232	0	0	0	0	13.733	267	1	681	2
FEBRUARY (II)	4.620	0	0	0	0	2.968	491	5	301	3	2.800	0	0	0	0	2.016	0	0	0	0	12.404	491	1	301	1
MARCH (III)	5.115	595	4	852	5	3.286	260	2	382	4	3.100	0	0	0	0	2.232	0	0	0	0	13.733	855	2	1.234	3
APRIL (IV)	4.950	3.103	19	2.285	14	3.180	483	5	440	4	3.000	0	0	251	3	2.160	0	0	0	0	13.290	3.586	8	2.976	7
MAY (V)	5.115	3.923	24	3.701	22	3.286	1.666	16	1.534	14	3.100	778	7	578	6	2.232	19	0	123	2	13.733	6.386	14	5.936	13
JUNE (VI)	4.950	3.727	23	3.323	20	3.180	2.052	19	2.186	21	3.000	2.226	21	1.952	20	2.160	1.139	16	1.500	21	13.290	9.144	21	8.961	20
JULY (VII)	5.115	4.245	26	4.556	28	3.286	2.824	27	2.931	28	3.100	2.767	26	2.724	27	2.232	1.909	27	1.940	27	13.733	11.745	27	12.151	27
AUGUST (VIII)	5.115	4.779	29	4.665	28	3.286	3.104	29	2.914	27	3.100	2.929	28	2.975	30	2.232	2.015	28	2.008	28	13.733	12.827	29	12.562	28
SEPTEMBER (IX)	4.950	4.211	26	4.041	24	3.180	2.689	25	2.707	26	3.000	2.349	22	2.218	22	2.160	1.246	17	833	12	13.290	10.495	24	9.799	22
OCTOBER (X)	5.115	3.094	19	3.621	22	3.286	1.305	12	1.116	11	3.100	973	9	1.562	16	2.232	380	5	332	5	13.733	5.752	13	6.631	15
NOVEMBER (XI)	4.950	620	4	1.093	7	3.180	344	3	0	0	3.000	0	0	0	0	2.160	0	0	0	0	13.290	964	2	1.093	2
DECEMBER (XII)	5.115	0	0	644	4	3.286	479	5	189	2	3.100			0	0	2.232	0	0	0	0	13.733	479	1	833	2
TOTAL	60.225	28.297	171	28.781	174	38.690	15.964	151	15.381	145	36.500	12.022	120	12.260	123	26.280	6.708	93	6.736	94	161.695	62.991	139	63.158	143

Monthly comparison of generated revenues/realized overnight stays in 2015 to the year 2014

		GENERATED REVENUES		PLANNED REVENUES			OVERNIGHT STAYS		PLANNED OVERNIGHT STAYS		AVER. PRICE IN HRK			AVER. PRICE IN €
	2014	2015	INDEX	2015	INDEX	2014	2015	INDEX	2015	INDEX	2014	2015	2014	2015	INDEX
JANUARY	278.764,73	504.665,66	181	309.852,81	163	543	1.159	213	713	163	513,38	435,43	67,15	56,59	84
FEBRUARY	120.990,31	123.508,47	102	116.919,50	106	905	493	0	532	93	0,00	0,00	0,00	0,00	0
MARCH	744.133,80	494.898,88	67	335.222,14	148	1.519	2.184	144	1.930	113	489,88	226,60	63,97	29,64	46
APRIL	1.873.027,94	1.423.601,41	76	1.637.599,36	87	6.614	5.127	78	5.118	100	283,19	277,67	37,24	36,58	98
MAY	3.390.330,57	2.987.906,32	88	3.038.312,99	98	11.252	10.474	93	11.715	89	301,31	285,27	39,70	37,63	95
JUNE	6.343.748,36	6.485.413,33	102	5.169.679,33	125	17.440	18.231	105	17.038	107	363,75	355,74	48,08	46,93	98
JULY	8.673.110,47	9.366.733,66	108	11.541.854,02	81	28.580	30.361	106	30.079	101	303,47	308,51	39,74	40,64	102
AUGUST	11.234.552,55	10.573.838,57	94	13.017.915,62	81	31.861	30.022	94	30.944	97	352,61	352,20	46,23	46,63	101
SEPTEMBER	6.853.790,03	6.973.430,48	102	5.183.991,61	135	19.330	18.171	94	19.031	95	354,57	383,77	46,49	50,19	108
OCTOBER	3.181.611,75	3.260.914,46	102	2.397.656,82	136	9.588	10.838	113	10.523	103	331,83	300,88	43,28	39,59	91
NOVEMBER	700.405,30	463.418,09	66	371.836,83	125	1.720	2.011	117	3.788	53	407,21	230,44	53,07	30,20	57
DECEMBER	332.389,11	768.552,30	231	189.220,73	406	823	1.572	191	713	220	403,87	488,90	52,72	64,03	121
TOTAL	43.726.854,92	43.426.881,63	99	43.310.061,77	100	130.175	130.643	100	132.124	99	335,91	332,41	44,00	43,63	99

Revenues per sold room 687,59 kn 90,24 €

Lavender	1.021.456,64	1.120.588,98	110	1.339.000,00	84
31.12.2015.	1.021.456,64	1.120.588,98	110
Aquatic center	2.395.807,14	2.599.501,49	109	2.687.385,00	97
31.12.2015.	2.395.807,14	2.599.501,49	109
Tenis center	288.530,16	269.271,03	93	331.534,00	81
31.12.2015.	288.530,16	269.271,03	93
TOTAL:	47.432.648,86	47.416.243,13	100	47.667.980,77	99

nautical sector

In the nautical sector the overnight stays are not the core business of the marina, but are indicated for informative purposes, while the core nautical activities in terms of generating revenues are: (1) The contractual berth for vessels in the marina, (2) transit number of inbound vessels from other ports (3rd ) repair services, (4) lifting services, (5) parking and (6) hospitality.

So here we point out that in 2015, Marina Kornati had 732 vessels based on the berth contract concluded, of which 459 individual vessels, which make up for 63% of all vessels based on the berth contract, which compared to the year 2014 is a growth by 2%, and 273 chartered vessels which account for 37% of all vessels based on the berth contract. The number of concluded berth contracts compared to 2014 is slightly lower as a result of a decrease in the number of chartered vessels as a result of long-term and continuous decline in the price of charter vessels, resulting in a trend of reducing chartered vessels in the fleets at the national level.

A total of 3,479 inbound vessels sailed in the port having the transit berth in the marina Kornati, which have a berth in some other marinas, compared to 2014 is a decline by 2% as a result of exceptionally favorable weather conditions in July, August and September when most vessels reduced sailing inwards into transit ports. Although the number of vessels in transit decreased and their structure changed, the reduction of the volume of physical traffic did not adversely affect the marina operating revenues, where the revenues from inbound transit vessels increased by 5%. Transit vessels made a total of 11,793 overnight stays in port with a pronounced rising trend of overnight stays of vessels longer than 16 meters in port compared to the year 2014.

In 2015, some 3,948 port service and lifting operations by crane were carried out, which compared to the year 2014 is a growth by 8% when 3,671 port service and lifting operations were carried out, which is a result of an increase in the number of smaller vessels (up to 9 m), which are brought by their owners on trailers and that stay at the marina just in high season, and their owners take them back and park them in the nearby dry marinas.

In Marina Kornati one portion of the revenues from the transit berth is generated from the vessels that sail in port as participants boat events, mostly in off-season. During the year, up to 39 boat events take place in the marina, involving an average of about 10 to about 100 vessels, or from about 50 to 700 participating boaters per event.

The financial and physical indicators are also associated with the business partners who conduct their independent business in the marina, such as chartering vessels, service and boat accessories, and other services that clients are interested in (nautical shop, market ...). In 2015, the business activity in Marina Kornati was performed by a total of 54 companies/trades with which a Cooperation Agreement was signed and for which the marina has obtained a special Consent from the Ministry of Maritime Affairs, Transport and Infrastructure.

Overview of physical turnover of Marina Kornati in the year 2015 and comparison to the year 2014

Physical turnover positions								Months 2015.
Name of position	Measurement unit	1.	2.	3.	4.	5.	6.	7.	8.	9.	10.	11.	12.
Contracted berth - individual	Contracted vessel	126	293	340	381	401	424	434	441	445	447	459	459
Contracted berth - charter	Contracted vessel	0	2	14	258	265	268	271	272	272	272	273	273
TOTAL Contracted berth	Contracted vessel	126	295	354	639	666	692	705	713	717	719	732	732
Transit berth – sailing in port	Sailing in port	6	16	60	172	528	954	1.722	2.671	3.213	3.445	3.474	3.479
Transit berth – overnight stay of vessel	Boat /day	152	388	878	1.645	2.745	3.867	6.199	9.390	10.629	11.316	11.573	11.793
Transit berth – overnight stay of vessel crew	Overnight stay of a person
Port service	Operation	135	403	798	1.225	1.677	2.108	2.575	3.130	3.426	3.582	3.802	3.948

Physical turnover positions								Months 2014.
Name of position	Measurement unit	1.	2.	3.	4.	5.	6.	7.	8.	9.	10.	11.	12.
Contracted berth - individual	Contracted vessel	116	293	333	389	412	430	436	441	441	444	468	469
Contracted berth - charter	Contracted vessel	14	22	42	293	301	302	303	303	303	304	304	304
TOTAL Contracted berth	Contracted vessel	130	315	375	682	713	732	739	744	744	748	772	773
Transit berth – sailing in port	Sailing in port	0	6	30	206	446	944	1.826	2.888	3.353	3.538	3.554	3.558
Transit berth – overnight stay of vessel	Boat /day	331	654	1.108	2.011	3.026	4.326	6.945	10.083	11.300	11.856	12.135	12.347
Transit berth – overnight stay of vessel crew	Overnight stay of a person
Port service	Operation	91	330	664	1.093	1.513	1.946	2.399	2.947	3.218	3.377	3.550	3.671

Vessels with berth contract in 2015 and comparison to the year 2014

Purpose	Type of berth	Position of berth	Total	% of total	Total	% of total	Index
			2015	vessels	2014	vessels	2015/14.
	Annual berth in sea	Central aquatorium	319	44	316	41	101
		South aquatorium	65	9	76	10	86
		Western aquatorium	3	0	5	1	60
		Hotel harbor	25	3	36	5	69
Vessels of individual owners	Annual berth on land	Marina inland	5	1	6	1	83
	Seasonal berth in sea	Marina aquatorium	19	3	15	2	127
		Hotel harbor	23	3	15	2	153
	Total:		459	63	469	61	98
	Annual berth in sea	Central aquatorium	60	8	61	8	98
		South aquatorium	9	1	9	1	100
CHARTER VESSELS		Western aquatorium	195	27	225	29	87
		Hotel harbor	9	1	9	1	100
	Total:		273	37	304	39	90
	Total vessels in 2015		732	100	773	100	95

Transit berth – inbound vessels in the year 2015 and comparison to the year 2014

		Individually by months			Cumulative by months
Year 2015	2015	2014	INDEX	2015	2014	INDEX
Month			2015/14			2015/14
1.	6	0	#DIV/0!	6	0	#DIV/0!
2.	10	6	167	16	6	267
3.	44	24	183	60	30	200
4.	112	176	64	172	206	83
5.	356	240	148	528	446	118
6.	426	498	86	954	944	101
7.	768	882	87	1.722	1.826	94
8.	949	1.062	89	2.671	2.888	92
9.	542	465	117	3.213	3.353	96
10.	232	185	125	3.445	3.538	97
11.	29	16	181	3.474	3.554	98
12.	5	4	125	3.479	3.558	98
Total 2015	3.479
Total 2014	3.558
Index 2015/2014	98

Transith berth - overnight stay of vessels in the year 2015 and comparison to the year 2014

		Individually by months			Cumulative by months
Year 2015	2015	2014	INDEX	2015	2014	INDEX
Month			2015/14			2015/14
1.	152	331	46	152	331	46
2.	236	323	73	388	654	59
3.	490	454	108	878	1.108	79
4.	767	903	85	1.645	2.011	82
5.	1.100	1.015	108	2.745	3.026	91
6.	1.122	1.300	86	3.867	4.326	89
7.	2.332	2.619	89	6.199	6.945	89
8.	3.191	3.138	102	9.390	10.083	93
9.	1.239	1.217	102	10.629	11.300	94
10.	687	556	124	11.316	11.856	95
11.	257	279	92	11.573	12.135	95
12.	220	212	104	11.793	12.347	96
Total 2015.	11.793
Total 2014.	12.347
Index 2015/2014	96

					Port service operations in the year 2015 and comparison to the year 2014
--	--	--	--	--	--------------------------------------------------------------------------

		Individually by months			Cumulative by months
Year 2015	2015	2014	INDEX	2015	2014	INDEX
Month			2015/14			2015/14
1.	135	91	148	135	91	148
2.	268	239	112	403	330	122
3.	395	334	118	798	664	120
4.	427	429	100	1.225	1.093	112
5.	452	420	108	1.677	1.513	111
6.	431	433	100	2.108	1.946	108
7.	467	453	103	2.575	2.399	107
8.	555	548	101	3.130	2.947	106
9.	296	271	109	3.426	3.218	106
10.	156	159	98	3.582	3.377	106
11.	220	173	127	3.802	3.550	107
12.	146	121	121	3.948	3.671	108
Total 2015.	3.948
Total 2014.	3.671
Index 2015/2014	108

Revenues of Marina Kornati in the year 2015 separately by months and comparison to the year 2014

REVENUES OF MARINA KORNATI 2015 SEPERATE BY MONTHS

	Revenue positions						Months 2015							2015	2014	Index
		1.	2.	3.	4.	5.	6.	7.	8.	9.	10.	11.	12.	cumulat.	total	2015./14.
I	Daily berth	34.901	45.351	88.723	167.703	314.909	312.393	468.109	666.507	304.390	177.342	30.272	54.957	2.665.558	2.521.861	106
II	Contracted berth with accessories	4.337.435	5.849.005	1.552.678	4.069.631	3.202.264	783.699	6.026.428	162.595	138.367	92.364	261.795	57.519	26.533.780	27.584.388	96
III.	Port service	210.179	275.204	386.386	386.775	403.737	299.670	246.378	235.036	141.662	109.010	164.520	138.200	2.996.757	2.667.909	112
IV.	Vehicle parking lot	2.424	8.136	22.023	100.866	222.990	234.682	340.555	458.824	342.808	151.599	18.972	4.236	1.908.116	2.001.774	95
V.	Other services	4.610	55.500	45.657	30.577	61.135	102.410	97.501	157.230	100.730	40.757	24.844	-442	720.510	528.513	136
VI.	Business cooper ation	0	11.836	0	1.055.064	18.235	18.910	1.072.626	-47.428	0	0	0	0	2.129.243	2.192.912	97
VII.	Boat fair and events	0	9.130	5.840	0	1.462.572	3.750	31.642	177.775	114.531	1.513.761	241.645	0	3.560.646	1.970.844	181
	TOTAL:	4.589.548	6.254.161	2.101.307	5.810.616	5.685.841	1.755.515	8.283.239	1.810.540	1.142.489	2.084.834	742.049	254.470	40.514.609	39.468.201	103

REVENUES OF MARINA KORNATI 2014 SEPERATE BY MONTHS

	Revenue positions						Months 2014							2014	2013	Indeks
		1.	2.	3.	4.	5.	6.	7.	8.	9.	10.	11.	12.	cumulat.	total	2014./13.
I	Daily berth	38.119	28.968	54.471	182.392	207.631	339.896	570.166	590.031	330.868	127.224	24.591	27.503	2.521.861	2.485.250	101
II	Contracted berth with accessories	3.896.586	6.426.379	1.547.202	3.975.967	4.035.829	692.651	6.087.303	197.943	211.058	115.110	395.806	2.552	27.584.388	25.291.581	109
III.	Port service	65.561	243.645	290.676	439.146	381.886	305.185	257.439	229.120	136.727	81.262	138.163	99.099	2.667.909	2.951.569	90
IV.	Vehicle parking lot	3.456	2.348	19.877	129.668	205.854	317.661	359.963	469.843	336.367	138.082	15.726	2.928	2.001.774	1.958.053	102
V.	Other services	816	39.548	21.924	33.127	37.681	70.034	90.271	139.695	48.880	39.861	4.149	2.527	528.513	771.245	69
VI.	Business cooper ation	2.041	0	0	1.095.709	0	6.090	1.089.073	0	0	0	0	0	2.192.912	2.144.409	102
VII.	Boat fair and events	90.807	0	4.840	7.370	0	5.701	63.446	91.871	174.093	1.462.330	47.191	23.194	1.970.844	1.570.928	125
	TOTAL:	4.097.386	6.740.888	1.938.990	5.863.380	4.868.882	1.737.218	8.517.662	1.718.504	1.237.994	1.963.870	625.626	157.803	39.468.201	37.173.035	106

Revenues of Marina Kornati in the year 2015 separately by months and comparison to the year 2014 (continuing from previous page)

REVENUES OF MARINA KORNATI 2015 CUMULATIVE BY MONTHS

	Revenue positions						Months 2015							% of total
		1.	2.	3.	4.	5.	6.	7.	8.	9.	10.	11.	12.	revenues
I	Daily berth	34.901	80.252	168.975	336.678	651.587	963.980	1.432.089	2.098.596	2.402.987	2.580.329	2.610.601	2.665.558	6,6
II	Contracted berth with accessories	4.337.435	10.186.439	11.739.117	15.808.748	19.011.012	19.794.711	25.821.140	25.983.735	26.122.101	26.214.466	26.476.261	26.533.780	65,5
III.	Port service	210.179	485.383	871.768	1.258.544	1.662.281	1.961.951	2.208.328	2.443.364	2.585.026	2.694.037	2.858.557	2.996.757	7,4
IV.	Vehicle parking lot	2.424	10.560	32.583	133.449	356.439	591.121	931.676	1.390.500	1.733.308	1.884.908	1.903.880	1.908.116	4,7
V.	Other services	4.610	60.110	105.766	136.343	197.478	299.888	397.389	554.620	655.350	696.107	720.952	720.510	1,8
VI.	Business cooper ation	0	11.836	11.836	1.066.900	1.085.135	1.104.045	2.176.671	2.129.243	2.129.243	2.129.243	2.129.243	2.129.243	5,3
	VII. Boat fair and events	0	9.130	14.970	14.970	1.477.542	1.481.292	1.512.934	1.690.710	1.805.240	3.319.001	3.560.646	3.560.646	8,8
	TOTAL	4.589.548	10.843.709	12.945.016	18.755.632	24.441.474	26.196.988	34.480.227	36.290.767	37.433.256	39.518.090	40.260.139	40.514.609	100,0

REVENUES OF MARINA KORNATI 2014 CUMULATIVE BY MONTHS

	Revenue positions						Months 2014							% of total
		1.	2.	3.	4.	5.	6.	7.	8.	9.	10.	11.	12.	revenues
I	Daily berth	38.119	67.087	121.558	303.950	511.581	851.477	1.421.644	2.011.675	2.342.543	2.469.767	2.494.358	2.521.862	6,4
II	Contracted berth with accessories	3.896.586	10.322.965	11.870.167	15.846.134	19.881.963	20.574.614	26.661.918	26.859.861	27.070.919	27.186.030	27.581.835	27.584.387	69,9
III.	Port service	65.561	309.206	599.882	1.039.029	1.420.915	1.726.099	1.983.538	2.212.658	2.349.385	2.430.647	2.568.810	2.667.909	6,8
IV.	Vehicle parking lot	3.456	5.804	25.681	155.349	361.203	678.864	1.038.827	1.508.670	1.845.038	1.983.120	1.998.846	2.001.774	5,1
V.	Other services	816	40.364	62.288	95.415	133.096	203.130	293.401	433.096	481.977	521.837	525.986	528.514	1,3
VI.	Business cooper ation	2.041	2.041	2.041	1.097.750	1.097.750	1.103.839	2.192.912	2.192.912	2.192.912	2.192.912	2.192.912	2.192.912	5,6
VII.	Boat fair and events	90.807	90.807	95.647	103.018	103.018	108.718	172.165	264.036	438.129	1.900.459	1.947.650	1.970.844	5,0
	TOTAL	4.097.386	10.838.274	12.777.264	18.640.644	23.509.525	25.246.743	33.764.405	35.482.908	36.720.903	38.684.772	39.310.398	39.468.202	100,0

CAMPING SECTOR

In 2015, 33,446 guests or 9.05% more guests than in the same period of 2014 stayed in the camping sector, with an average length of stay of 7.79 days. 260,579 overnight stays or 11.19% more overnight stays in the observed period were realized, which accounts for 83.86% of all camping overnight stays in the city of Biograd na Moru.

In the process of making decisions on strategic planning for marketing and sales activities, we continuously monitor our important source camping markets, of which the following are the most important for us: Slovenia, Germany, Netherlands and Croatia. Owing to marketing activities and pricing policy in 2015, we realized an increase in total overnight stays by 11.19% and an increase in the total number of arrivals by 9.05% compared to the year 2014. The segments of mobile homes and camping units record the highest increase in arrivals of guests from the Dutch market (mobile homes record an increase by 44.47%, and camping units by 44.51%), the German market (mobile homes by 7.59% and camping units by 4.70 %), the Slovenian market (mobile homes by 50.41% and the camping units by 21.55%) compared to the year 2014.

source markets are (1) the Slovenian market with a share of 24% overnight stays, (2) the German market with a share of 17% overnight stays, (3) the Czech market with a share of 17% overnight stays, (4) the Dutch market with a share of 10% overnight stays and (5) the Croatian market with a share of 6% overnight stays.

The investment in the purchase of new mobile homes in 2015 (14% increase compared to the year 2014) proved to be a likely potential for further mance indicators for the camp operations. In 2015, an increase in physical indicators resulted in an increase in annual revenues which in 2014 amounted to HRK 22,562,848.34 and increased to HRK 24,214,326.42 in 2015, which is a rise by 7.32%. The reported increase was mainly

driven by the investments in marketing and sales, as well as the continuing presence in the important European markets through trade fairs, print ads and online editions, and other marketing activities.

A higher increase in the number of overnight stays compared to the number of arrivals indicates a higher average number of days of stay, which in 2014 was 7.64 days and 7.79 days in 2015. This means that guests stay longer in the camp, where it was not only the service we provide, but also the sunny weather that contributed to such results.

Capacities of the Camp "Park Soline"

		2012	2013	2014	2015
	EXTRA ZONE
	CAMPING PLOTS	80	80	80	81
I.	CAMPING PITCHES	0	0	0	0
	TOTAL	80	80	80	81
	FIRST ZONE
	CAMPING PLOTS	327	336	345	326
II.	CAMPING PITCHES	0	0	0	0
	TOTAL	327	336	345	326
	SECOND ZONE
	CAMPING PLOTS	157	168	168	182
III.	CAMPING PITCHES	0	0	0	0
	TOTAL	157	168	168	182
	THIRD ZONE
	CAMPING PLOTS	161	342	342	347
IV.	CAMPING PITCHES	263	130	188	187
	TOTAL	424	472	530	534
TOTAL	GRANDTOTAL
	CAMPING PLOTS	725	926	935	936
	CAMPING PITCHES	263	130	188	187
	GRANDTOTAL	988	1056	1123	1123

Arrivals and overnight stays per source markets in 2015 and comparison to the year 2014

	2015		2014		INDEX 15/14		AVERAGE STAY (DAYS)
Country	Arrivals	Overnight stays	Arrivals	Overnight stays	Arrivals	Overnight stays	2015	2014
Austria	1.897	12.865	1.774	13.116	106,93	98,09	6,78	7,39
Belgium	562	4.505	612	4.820	91,83	93,46	8,02	7,88
B&H	207	912	207	983	100,00	92,78	4,41	4,75
Czech Republic	5.579	44.104	4.342	32.845	128,49	134,28	7,91	7,56
Denmark	700	6.524	771	7.131	90,79	91,49	9,32	9,25
France	692	5.223	786	5.850	88,04	89,28	7,55	7,44
Croatia	1.706	15.170	1.568	13.984	108,80	108,48	8,89	8,92
Italy	1.568	9.313	1.642	9.913	95,49	93,95	5,94	6,04
Hungary	1.304	7.980	1.263	7.758	103,25	102,86	6,12	6,14
The Netherlands	2.558	25.497	2.093	20.290	122,22	125,66	9,97	9,69
Germany	5.137	43.554	5.047	42.663	101,78	102,09	8,48	8,45
Poland	1.509	12.520	1.548	11.334	97,48	110,46	8,30	7,32
Slovakia	507	3.999	521	3.537	97,31	113,06	7,89	6,79
Slovenia	8.300	61.773	7.118	52.932	116,61	116,70	7,44	7,44
Switzerland	311	1.420	329	1.644	94,53	86,37	4,57	5,00
Other	909	5.220	1.048	5.546	86,74	94,12	5,74	5,29
TOTAL	33.446	260.579	30.669	234.346	109,05	111,19	7,79	7,64

Overnight stays per source market in 2015

Cumulative overview of daily and monthly occupancy of accommodation camp units "Park Soline" in 2015

MONTH			APRIL				MAY				JUNE				JULY
SEGMENT	MAXIMUM POSSIBLE PITCHES DAYS	PITCH DAYS	OCCUPANCY IN %	DAYS OF OCCUPANCY	MAXIMUM POSSIBLE PITCHES DAYS	PITCH DAYS	OCCUPANCY IN %	DAYS OF OCCUPANCY	MAXIMUM POSSIBLE PITCHES DAYS	PITCH DAYS	OCCUPANCY IN %	DAYS OF OCCUPANCY	MAXIMUM POSSIBLE PITCHES DAYS	PITCH DAYS	OCCUPANCY IN %	DAYS OF OCCUPANCY
MOBILE ILIRIJA	869	260	28,11%	1,97	3.844	618	13,60%	4,22	3.720	2.242	59,73%	17,92	3.875	3.776	97,60%	30,26
AGENCIES	1.428	1.428	100,00%	7,00	6.324	6.324	100,00%	31,00	6.120	6.120	100,00%	30,00	6.324	6.324	100,00%	31,00
LUMP SUM	1.190	1.190	100,00%	7,00	5.270	5.270	100,00%	31,00	5.100	5.100	100,00%	30,00	5.363	5.356	99,87%	30,96
INDIVIDUALS EXTRA, I, II and III ZONE	3.052	69	2,26%	0,16	13.516	1.088	8,05%	2,50	13.080	4.476	34,22%	10,27	13.423	9.896	73,72%	22,85
INDIVIDUALS IV ZONE	1.316	0	0,00%	0,00	5.828	3	0,05%	0,02	5.640	33	0,59%	0,18	5.828	1.158	19,87%	6,16
INDIVIDUALS TOTAL	4.368	69	1,58%	0,11	19.344	1.091	5,64%	1,75	18.720	4.509	24,09%	7,23	19.251	11.054	57,42%	17,80
TOTAL	7.855	2.947	37,49%	2,62	34.813	13.212	37,95%	11,76	33.690	17.969	53,34%	16,00	34.813	26.516	76,17%	23,61

MONTH			AUGUST			SEPTEMBER					OCTOBER				TOTAL
SEGMENT	MAXIMUM POSSIBLE PITCHES DAYS	PITCH DAYS	OCCUPANCY IN %	DAYS OF OC CUPANCY	MAXIMUM POSSIBLE PITCHES DAYS	PITCH DAYS	OCCUPANCY IN %	DAYS OF OC CUPANCY	MAXIMUM POSSIBLE PITCHES DAYS	PITCH DAYS	OCCUPANCY IN %	DAYS OF OC CUPANCY	NUMBER OF ACCOM MODATING UNITS	MAXIMUM POSSIBLE PITCHES DAYS	PITCH DAYS	OCCUPANCY IN %	DAYS OF OCCUPANCY
MOBILE ILIRIJA	3.875	3.791	97,96%	30,37	3.750	2.426	64,75%	19,42	3.875	6	0,15%	0,05	125	23.808	13.119	55,10%	105,25
AGENCIES	6.324	6.324	100,00%	31,00	6.120	6.120	100,00%	30,00	6.324	6.324	100,00%	31,00	204	38.964	38.964	100,00%	191,00
LUMP SUM	5.363	5.363	100,00%	31,00	5.190	5.190	100,00%	30,00	5.363	5.363	100,00%	31,00	173	32.839	32.832	99,98%	190,96
INDIVIDUALS EXTRA, I, II and III ZONE	13.423	9.726	72,46%	22,46	12.990	2.921	22,49%	6,75	13.454	45	0,33%	0,10	434	82.938	28.221	34,03%	64,99
INDIVIDUALS IV ZONE	5.828	1.741	29,87%	9,26	5.640	67	1,19%	0,36	5.797	0	0,00%	0,00	187	35.877	3.002	8,37%	15,98
INDIVIDUALS TOTAL	19.251	11.467	59,57%	18,47	18.630	2.988	16,04%	4,81	19.251	45	0,23%	0,07	621	118.815	31.223	26,28%	50,19
TOTAL	34.813	26.950	77,41%	24,00	33.690	16.726	49,65%	14,89	34.813	11.738	33,72%	10,45	1123	214.426	116.138	54,16%	103,45

Revenues generated by the camp in 2015 and comparison to the year 2014*

		2014 2015												INDEX
			GENERATED IN 2014			CONTRACTED PRIOR TO 31/2/2014		PLAN FOR 2015				GENERATED PRIOR TO 31/12/2015	2015/2014			PLAN REALIZATION
	SEGMENT	NO. OF PITCHES	OVER NIGHT STAYS	REVENUES	REALIZED OVERNIGHT STAYS	REVENUES	NO. OF PITCHES	OVER NIGHT STAYS	REVENUES	NO. OF PITCH ES	REALIZED OVER NIGHT STAYS	CONTRACTED REVENUE	OVER NIGHT STAYS	REVE NUES	OVERNIGHT STAYS	REVENUES
1.	MOBILE HOMES	110	41.530	6.618.550,41 kn	41.530	6.618.550,41 kn	125	49.940	7.692.533,72 kn	125	50.786	7.418.607,10 kn	122	112	102	96
2.	AGENCIES	185	66.828	3.361.947,40 kn	66.828	3.361.947,40 kn	204	73.100	3.799.696,00 kn	204	77.043	3.761.086,51 kn	115	112	105	99
3.	INDIVIDU ALS	648	87.338	7.099.725,98 kn	87.338	7.099.725,98 kn	616	95.120	7.890.573,54 kn	621	94.869	7.682.644,60 kn	109	108	100	97
4.	LUMP SUM	180	38.650	2.974.926,69 kn	38.650	2.974.278,61 kn	178	39.520	3.046.086,79 kn	173	37.881	3.003.719,62 kn	98	101	96	99
6.	OTHER SERVICES	-	-	700.617,86 kn	-	700.617,86 kn	-	-	876.709,43 kn	0	0	1.037.166,15 kn	#DIV/0!	148	#DIV/0!	118
TOTAL:		1123	234.346	20.755.768,34 kn	234.346	20.755.120,26 kn	1123	257.680	23.305.599,48 kn	1123	260.579	22.903.223,98 kn	111	110	101	98

*Note: The total operating revenues of the camp "Park Soline" does not include other revenues and difference between revenues and pre-arranged and approved discounts.

ilirija travel – complementary product

In the reporting period in 2015, through the system and organization of the destination management company (DMC) Ilirija Travel, including the other profit centers of Ilirija d.d., we recorded over 411 individual events; special programs, conferences, weddings, banquets and similar events, with a total number of over 49.837 guests, mostly in the shoulder season, which is crucial to expending the season of the Company by offering complementary forms of tourism and special interest tourism, that generated HRK 9,307,157,19 in revenues, which is a result of the new product activity of Ilirija Travel as the integrated product of the Company.

The difference in revenues in the amount of HRK 1,588.807,14 was shown in Overview of revenues generated by sectors, as recorded in the hotel industry, camping and nautical sector.

financial operating results

Overview of financial operating results from 2009 to 2015

Description	31.12.2009.	31.12.2010.	31.12.2011.	31.12.2012.	31.12.2013.	31.12.2014.	31.12.2015.	Index 15/14
Operating revenues	88.585.658,86	89.851.286,86	101.315.471,31	110.113.121,89	116.431.304,58	121.792.647,35	127.122.379,61	104,38
Financial revenues	234.844,61	140.059,61	264.065,69	220.374,90	272.620,92	136.259,45	484.269,24	355,40
Extraordinary rev enues	2.012.270,69	1.373.598,08	2.155.691,95	801.335,91	616.481,19	944.845,32	539.863,78	57,14
TOTAL REVENUES	90.832.774,16	91.364.944,55	103.735.228,95	111.134.832,70	117.320.406,69	122.873.752,12	128.146.512,63	104,29
Operating expenses	63.584.274,47	64.738.583,70	71.301.495,32	76.286.679,54	80.774.385,77	85.667.666,60	84.573.385,40	98,72
Financial expenses	5.717.782,00	7.034.774,08	8.894.619,15	6.662.995,79	6.333.307,89	5.355.803,37	4.030.686,50	75,26
Extraordinary ex penses	5.421.386,12	2.248.044,27	4.403.636,28	3.690.513,45	3.698.321,67	3.994.948,24	5.805.950,27	145,33
Amortization	5.290.741,74	5.830.783,65	5.885.794,82	6.239.514,80	6.385.207,46	7.470.218,79	8.225.981,02	110,12
TOTAL EXPENDI TURES	80.014.184,33	79.852.185,70	90.485.545,57	92.879.703,58	97.191.222,79	102.488.637,00	102.636.003,19	100,14
PROFIT/LOSS	10.818.589,83	11.512.758,85	13.249.683,38	18.255.129,12	20.129.183,90	20.385.115,12	25.510.509,44	125,14
OPERATING PROF IT/LOSS	25.001.384,39	25.112.703,16	30.013.975,99	33.826.442,35	35.656.918,81	36.124.980,75	42.548.994,21	117,78

1

Total revenues generated for the year 2015 amount to HRK 128,146,512.63 which is a rise by 4.29% compared to the year 2014.

Total operating revenues generated in the observed period amount to HRK 125,275,837.54 which is a rise by 5.28% compared to the same period in 2014.

Total revenues generated from the sale in the year 2015 amount to HRK 125,275,837.54 which is a rise by 5.28% compared to the year 2014. The revenues from sale account for 98.55% of the operating revenues, or 97.76% of the total revenues.

2

Total operating expenses in the said period amount to HRK 102,636,003.00 and range within the forecasted limits.

Total operating expenses generated in the year 2015 amount to HRK 84,573,385.40 and are lower by 1.28% compared to the year 2014.

3

The operating profit or the profit from operations of the Company rose by 17.78% compared to the year 2014 and amounts to HRK 42,548,994.21.

EBITDA or Earnings before interest, taxes, depreciation and amortization was realized in the amount of HRK 37,767,176.96, and rose by HRK 4,556,039.68 or by 13.72% compared to the year 2014.

EBIT - or Earnings before interest and tax was realized in the amount of HRK 29,541,195.94, and rose by HRK 3,800,277.45 or by 14.76% compared to the year 2014.

Profit before tax amounts to HRK 25,510,509.44, and rose by HRK 5,125,394.32 or by 25.14% compared to the year 2014.

Operating profit, EBITDA, EBIT and profit before tax are the results of an increase in revenues and cost-efficiency and reduction of operating expenses and increase in the operational efficiency of the Company as a whole.

Financial statements of the Company as at 31 December 2015 compared to the years 2013 and 2014

REVENUES	2013	2014	INDEX 14./13.	2015	INDEX 15./14.
Revenues on the local market	78.629.358,69	84.675.322,34	108	89.485.635,86	106
Revenues on foreign market	35.659.411,84	34.312.895,38	96	35.790.201,68	104
Other revenues	2.142.534,05	2.804.429,63	131	1.846.542,07	66
OPERATING REVENUES	116.431.304,58	121.792.647,35	105	127.122.379,61	104
FINANCIAL REVENUES	272.620,92	136.259,45	50	484.269,24	355
EXTRAORDINARY REVENUES	616.481,19	944.845,32	153	539.863,78	57
TOTAL REVENUES	117.320.406,69	122.873.752,12	105	128.146.512,63	104
EXPENSES					#DIV/0!
Raw material and material expenses	19.093.641,84	20.227.454,80	106	20.106.891,81	99
Services costs	16.278.650,28	16.922.695,44	104	17.867.521,54	106
Gross salaries	30.202.641,66	32.942.681,21	109	29.763.374,67	90
Other costs	15.199.452,00	15.574.835,15	102	16.835.597,38	108
TOTAL COSTS	80.774.385,77	85.667.666,60	106	84.573.385,40	99
AMORTIZATION	6.385.207,46	7.470.218,79	117	8.225.981,02	110
FINANCIAL EXPENSES	6.333.307,89	5.355.803,37	85	4.030.686,50	75
EXTRAORDINARY EXPENSES	3.698.321,67	3.994.948,24	108	5.805.950,27	145
TOTAL EXPENDITURES	97.191.222,79	102.488.637,00	105	102.636.003,19	100
PROFIT / LOSS	20.129.183,90	20.385.115,12	101	25.510.509,44	125
OPERATING PROFIT/LOSS	35.656.918,81	36.124.980,75	101	42.548.994,21	118

revenues by activities:

Revenues from hotel services amount to HRK 47,416,243.13 and remained at the same level compared to the year 2014 and make up for 37% of the total operating revenues of the Company.

Revenues from nautical services amount to HRK 45,291,162.61 and rose by 3% compared to the year 2014 and make up for 35.34% of the total operating revenues of the Company.

Revenues from the camp amount to HRK 26,696,623.82 and rose by 8% compared to the year 2014 and make up for 20.83% of the total operating revenues of the Company.

The revenues from other activities, that is, from Ilirija Travel, hospitality, Arsenal and event boat "Nada" were generated in the amount of HRK 7,718,350.05 and rose by 38% compared to the year 2014 and make up for 6.02% of the total operating revenues of the Company.

GRANDTOTAL: Operating revenues by activities amount to HRK 127,122,379.61 and rose by 4% compared to the year 2014.

Structure and share of generated revenues by sectors for the year 2015 in the total revenues of the Company

REVENUES	2014	Share	2015	Share	INDEX 15./14.
Hotel industry	47.432.648,86	38,60	47.416.243,13	37,00	100
Nautics	44.086.730,51	35,88	45.291.162,61	35,34	103
Camping	24.685.606,93	20,09	26.696.623,82	20,83	108
Revenues of other economic operators	5.587.661,05	4,55	7.718.350,05	6,02	138
OPERATING REVENUES	121.792.647,35		127.122.379,61		104
FINANCIAL REVENUES	136.259,45	0,11	484.269,24	0,38	355
EXTRAORDINARY REVENUES	944.845,32	0,77	539.863,78	0,42	57
TOTAL REVENUES	122.873.752,12	100,00	128.146.512,63	100,00	104

fundamental financial indicators of the company's position as at 31/12/2015

1

The value of the assets of the Company as at 31/12/2015 amounted to HRK 317,059,816.92 and rose by HRK 6,147,484.61 or by 1.98% compared to the same period in the previous year 2014.

3

Capital and reserves of the Company as at 31/12/2015 amounted to HRK 220,353,306.88 and rose by HRK 42,494,591.21 that is by 23.9% compared to the year 2014 when they amounted to HRK 177,858,715.67.

2

Total liabilities of the Company as at 31/12/2015 amounted to HRK 96,706,510.04 and decreased by HRK 36,347,106.60 that is by 27.31% compared to the year 2014 when they amounted to HRK 133,053,616.64.

OVERVIEW of fundamental cumulative and comparable indicators of the Company, or the position of liabilities, capital, values of assets and other indicators of the Company as of 31/12/2015 and for the period from 2009 to 2015

YEAR	TOTAL LIABILITIES	CAPITAL	VALUE OF ASSETS	REVENUES	OPERATING PROFIT	PROFIT	ANNUAL DIVIDENDS
1	2	3	4	5	6	7	8
31.12.2015.	96.706.510,04	220.353.306,88	317.059.816,92	128.146.512,63	42.548.994,21	25.510.509,44	3.740.790,00
31.12.2014.	133.053.616,64	177.858.715,67	310.912.332,31	122.873.752,12	36.124.980,75	20.385.115,12	3.740.790,00
31.12.2013.	131.195.062,79	166.861.394,25	298.056.457,04	117.320.406,69	35.656.918,81	20.129.183,90	3.740.790,00
31.12.2012.	136.546.285,85	151.895.416,40	288.441.702,25	111.134.832,70	33.826.442,35	18.255.129,12	3.740.790,00
31.12.2011.	139.927.300,98	140.262.242,54	280.189.543,52	103.735.228,95	30.013.975,99	13.249.683,38	3.740.790,00
31.12.2010.	142.308.155,23	133.202.459,64	275.510.614,87	91.364.944,55	25.112.703,16	11.512.758,85	3.740.790,00
31.12.2009.	141.990.022,14	127.844.800,85	269.834.822,99	90.832.774,16	25.001.384,39	10.818.589,83	3.740.790,00

operating and other expenses

Operating expenses in the year 2015 amount to HRK 84,573,385.40, which is a decline by 1.28% compared to the previous fiscal year. The reduction of these expenses is the result of better and more rational management of operating expenses, especially the labor costs.

financial expenses

Financial expenses for the year 2015 amount to HRK 4,030,686.50, which is a decline by 24.74% compared to the year 2014 when they amounted to HRK 5,355,803.37. Reduced financial expenses are the result of gradual total indebtedness of the Company and smaller volume of short-term financing of the Company by foreign funding sources.

Financial expenses mainly include ordinary expenses arising from financing, that is, interests on longterm and short-term financial liabilities and they amount HRK 3,562,929.35, while the amount of HRK 467,757.15 incurred as a result of interests accrued on other financial and short-term credit activities.

extraordinary expenses

Financial expenses for the year 2015 amount to HRK 5,805,950.27, that is, they rose by 45.33% compared to the year 2014 when they amounted to HRK 3,994,948.24. These expenses mostly incurred as a result of the incentive discounts to customers in the amount of HRK 3,095,682.31 duly recorded by the Company in this manner in its business records for the sake of transparency to the tax authorities, in the position of one-time writeoff of past due receivables in the amount of HRK 1,336,072, 07 for which the processes of forced debt collection has been initiated and subsequently determined expenses from previous years in the amount of HRK 902,141.72.

liquidity:

It is assessed as satisfactory for current and accrued liabilities of the Company for the reporting period.

share split

During the period from 01 January to 31 December, there was no share split.

earning per share

In 2015, it amounts HRK 93.01 gross, that is, after the deduction of corporate income tax, it amounts to HRK 74.40.

mergers and acquisitions

There have been no mergers and acquisitions.

uncertainty of collecting revenues and potential future costs

There are no such risks that may substantially affect the financial position and financial operating results of the Company and can therefore be regarded as negligible.

investments In 2015, the Company continued to make investments in the supply, improvement of services, supply and amenities at the level of the whole Company, tailoring its offer to the requirements, demands and wishes of its clients, thereby ensuring a competitive market position and high-quality and recognizable tourism product.

In accordance with the annual Plan of investments for the year 2015, HRK 14,115,336.73 was invested in all sectors of the Company, of which the amount HRK 11,829,096.97 was spent from the Company's resources, while the investments in the amount of HRK 2,286,239.76 was realized by means of leasing. In 2015, the largest single investment was the final development of the accommodation facility Villa Primorje**** in which the amount of HRK 2,847,130.39 was invested.

Regarding the camping sector, the investment was made in the in the purchasing and equipment of new mobile homes, landscaping of the camp up to the level of the arboretum and its further infra

structural development, while at the same time the Company continued to invest in the improvement of the existing tourism supply in the hotel, nautical and hospitality sector.

In November 2015, the Company started with the first phase of reconstruction of the coastal part of Nautical Tourism Port "Marina Kornati", which according to the established schedule is planned to be finalized by the end of February 2016, i.e. before the start of this year's boating season, thereby enabling it to provide accommodation for higher category of vessels, better utilization of aquatorium of the marina, further enrichment and modernization of the offer by implementing the best existing technical solutions, whereby the Company will strengthen its market position among the top three nautical tourism ports at the Adriatic Sea.

13. business expectations and development plan of the company in the year 2016

In the fiscal year 2016, we expect minimal achievement or repetition of 2015 operating results, either financial or physical ones, while an increase in the physical and financial results compared to 2015 has been forecasted in the business plan and budget for 2016, assuming that no significant changes will be made, especially in terms of safety in the major source markets of the Croatian tourism.

Growth is expected particularly in certain segments of the tourism supply - especially in the segment of innovative and complementary tourism supply that we present to the market through DMK Ilirija Travel intended for the emerging experience and special interest tourism market, which is important for achieving better business results in the shoulder season, since the marketing and acquisition activities are greatly focused on this supply segment.

In addition, we continue with a significant investment cycle in our nautical sector, where in addition to the finalization of the first phase of reconstruction of the coastal part of the Nautical Tourism Port Marina Kornati, planned to be finalized by end of February 2016, the Company would start with the reconstruction of the second phase of the coastal area of Marina Kornati by the end of the fiscal year, where by implementing the best existing technical solutions the Company would further enrich and modernize the marina itself, one of the three largest marinas at the Croatian Adriatic Sea, followed by the modernization of other services, particularly in the area of accepting the vessels.

Besides the nautical sector, the investment cycle also encompasses the hotel industry and camping sector in order to increase the capacities, improve service quality and standards. The Company will invest in the purchase of new mobile homes, landscaping of camp, increasing the hospitality capacities and restaurants, while regarding the hotel management sector, the Company will invest in raising the quality of accommodation facilities and additional amenities.

The Company will continue to invest in the training of our employees by organizing a wide range of workshops for improving their personal and professional skills, in particular in the area of sales and marketing and the department of food and beverages.

The Company will perform significant activities to adapt to and implement the standards, procedures and regulations in all aspects of environmental protection (protection of the sea, coast, water, air, soil) and waste management and take further actions focused on the implementation of HALAL standards in the Company's restaurants.

14. long-term development of the company

As in the observed period, the Amendments to the Physical Planning Document of the city of Biograd na Moru are pending, and the Company submitted to the City Biograd its own request for incorporation in the Amendments to the Physical Planning Document of the city of Biograd na Moru within the stipulated time and on a timely manner, and only for the property, real estate, land plots and maritime domain which are owned or in long-term concession or leased by the Company.

A total of eight (8) requests – proposals for the existing and planned facilities and interventions in the area have been submitted:

1. Conservation, extension and improvement of the quality of the existing camp "Park Soline" on the surface of 20.00 Ha
1. Reconstruction and extension of the hotel complex Ilirija-Kornati-Adriatic
1. Reconstruction and extension of nautical tourism Port Ilirija
1. Reconstruction and extension of nautical tour-

ism Port Marina Kornati

1. Construction of health-recreation center Soline – on the area of the existing tennis center
1. Construction of the agrotourism center Primorje – on the land plot of the existing rural estate of the Company
1. Construction of the golf course in the area of Jankolovic on the public worthless forest land of an area of approximately 90.00 Ha without building facilities except for the club premises
1. Development of the camp stop up to the level of full equipment

The construction of the proposed tourist facilities would result in an improved and enhanced existing and achieved level of organized tourism in the city of Biograd na Moru as the most powerful economic branch at least by one third or even more regarding the scope and quality of supply and amenities, compared to the existing level including new employment.

15. operational risks of the company

The Company is, after all, as the most businesses in the tourism sector, exposed to foreign exchange risk, interest rate risk, price risk, credit risk and liquidity risk, environmental risk, risk of tourism as the branch of economy, the risk of macroeconomic trends and risk of changes in tax and other regulations.

Since most of the monetary fund inflows of the Company are quoted in EUR, as well as the most of the loans, the Company is to the highest degree hedged against the foreign exchange risk owing to this circumstance.

Indebtedness of the Company with the commercial bank is mainly subject to variable interest rates, so taking this into consideration, the Company is partially exposed to interest rates, but only due to exceptional circumstance and disturbance in the operations which are not attributable to the Company.

In order to reduce the credit risk, the Company

strives to reduce the total loan debts to an appropriate level that would be inferior to their own funding source.

The Company has most of its prices quoted in EUR and collects the majority of claims in the same currency, thereby being hedged against the price risk.

The Company is exposed to changes in tax and other regulations in the legal system of the Republic of Croatia. This, in particular applies to legislation in the field of maritime domain and the tourist land plots on which the Company has significant commercial and critical long-term investments and all the constitutionally guaranteed rights have not been exercised in the field of protection of capital investment.

16. significant events and recapitalization of the company

General Shareholders' Assembly session was held in the reporting period as at 27 March 2015, at which all the reports of the Management Board of the Company on the operations for 2014 were accepted and approved, and among other things, the decision on utilization of the profit for the year 2014 was made.

We emphasize a part of the Decision approving the payment of the dividend in the amount of HRK 15.00 per share and the increase in share capital of the Company by the amount of HRK 12,469,300.00 from the reinvested profit of the Company. In this way, the value of each share of the Company increased by HRK 50.00 so that each share has a nominal amount of HRK 550.00 after the increase.

At its 89th session held on 18 June 2015, the Supervisory Board appointed Mr. Goran Ražnjević as the sole member of the Management Board of Ilirija d.d. again for the fourth time in a row, whose term of office started running as of the date of his appointment.

General Shareholders' Assembly of the Companypassed the following Decisions on 04 September 2015:

Decision on an increase in the share capital of the Company and issue of new shares completing excluding pre-emptive rights of the existing shareholders to the subscription and payment of New shares.
Decision on listing of shares on the Official market of the Zagreb Stock Exhange.
Decision on changes and amendments to the Company's Articles of Association.

According to the above mentioned Decision, the share capital of the Company increased from the amount of HRK 137,162,300.00 by the amount of HRK 13,695,000.00 to the amount of HRK 150,857,300.00 by issuing 24,900 new bearer ordinary shares with nominal value of HRK 550.00. The New shares were issued in the amount of HRK 875.00 for one New share, and the right to subscribe and pay New ordinary shares was vested only in the company Allianz ZB d.o.o., the company for mandatory pension fund management with the headquarters in Zagreb, on behalf of the pension funds managed by it.

Allianz ZB d.o.o. subscribed and paid all 24,900 new bearer ordinary shares, with nominal value of HRK 550.00 each, at a price of HRK 875.00 each.

After 08 September 2015, the Company's Management Board sent a notice that in the process of recapitalization 100% of the total issue of New shares was subscribed and paid and that the issuing of New shares was considered successfully completed.

At the 91st session held on 08 September 2015, the Supervisory Board adopted the full text of the Articles of Association of Ilirija d.d. in accordance with the decisions of the Extraordinary General Meeting of 4 September 2015.

On 19 October 2015 according to the Decision passed by the General Meeting, the Company submitted a request to the Zagreb Stock Exchange (ZSE) for listing/transfer from the Regular Market onto the Official Market of the Zagreb Stock Exchange.

On 26 October, 2015 the Zagreb Stock Exchange d.d. passed a decision by which the Company is granted a transfer of 249,386 ordinary shares of the Company, with a nominal amount of HRK 550,00 each, designated as ILRA-R-A, ISIN: HRILR-ARA0009, from the Regular Market onto the Official Market of Zagreb Stock Exchange. According to this Decision, the transfer of the ordinary shares of the Company onto the Official Market of the Zagreb Stock Exchange was carried out on 28 October 2015.

On 26 October, 2015 the Zagreb Stock Exchange d.d. passed a decision by which the Company is granted the listing of 24,900 newly issued shares of the Company, with a nominal amount of HRK 550.00, designated as ILRA-R-A, ISIN: HRILR-ARA0009, on the Official Market of Zagreb Stock Exchange. According to this Decision, the listing of the ordinary shares of the Company onto the Official Market of the Zagreb Stock Exchange was carried out on 28 October 2015.

According to the above mentioned Decisions of Zagreb Stock Exchange d.d. on the transfer and listing of financial instruments of the Company on 28 October 2015, the Contract on the listing of financial instruments onto the regulated market was signed between the Company and Zagreb Stock Exchange d.d. according to which 274,286 ordinary shares with a nominal value of HRK 550.00, designated: ILRA-R-A, ISIN designated: HRILR-ARA0009, were listed onto the Official Market of the Zagreb Stock Exchange d.d., which is also the first day of trading in the Company's shares on that market segment of the regulated market of Zagreb Stock Exchange.

At the 93rd session held on 29 October 2015, the Supervisory Board adopted the Report by the Company's Management Board on the Company's operations for the period from 1 January to 30 September, 2015, Report on investments by profit centers, Plan of Investments in 2016 and adopted a framework plan of the Company's Supervisory Board sessions for the year 2016.

At the 94th session held on 22 December 2015, the Supervisory Board of the Company gave a consent to the Company's Management Board to entering into long-term investment loan with Erste&Steiermarkische Bank d.d. from the funds of the Croatian Bank for Reconstruction and Development, adopted the Report by the Management Board on the financial operations and financial position of the Company for the period from 01 January to 30 November 2015 and acknowledged the receipt of the information of the Company's Management Board on the progress of Changes and Amendment to the Physical Planning Document of the city of Biograd na Moru.

On 29 December 2015 the Company provided the City of Biograd, developer of the Physical Planning Document, with the comments and suggestions to be incorporated in the 3rd Changes and Amendments to the Physical Planning Document of the city of Biograd na Moru where it proposes the incorporation of eight (8) development projects of the Company in the third Changes and Amendments to the Physical Planning Document of the city of Biograd na Moru at the second repeated public debate.

In the year 2015, the Company acquired 20 shares in the regulated capital market designated IL-RA-R-A, and following the above acquisition, as at 31/12/2015 the Company owns 724 shares which make up for 0.26% share in the share capital and the same percentage of votes at the General Shareholders' Assembly.

17. significant events after the end of the fiscal year

After the end of the fiscal year as at 16 February 2016, the Company has acquired 110 treasury shares designated as ILRA-R-A in the regulated capital market of Zagreb Stock Exchange. Following the above acquisition, the Company owns 834 treasury shares which make up for 0.304% share in the share capital and the same percentage of votes at the General Shareholders' Assembly.

18. sustainable develop- ment and corporate so- cial responsibility

sustainable development

An integral part of the corporate social responsibility includes sustainable development of the Company, which is particularly pronounced in the tourism industry and in Ilirija d.d. as well, which is based on compliance with the principles of sustainable development, where the economic growth will not threaten the existing natural resources, cultural, historical and natural heritage. Such a kind of responsible and sustainable tourism in which the current and future economic, social and environmental requirements of all participants in the business process are harmonized, ensures long-term viability of Ilirija as an economic operator, the tourism as an industry and the future for the generations that are yet to come as well.

Every day at the operational level, we attend to managing the environmental protection processes with an aim and obligation to: comply with legal regulations, prevent environmental pollution, reduce the amount and harmfulness of waste produced, reduce the emissions of pollutants in water, soil and air, and provide education and training of employees for environmental protection.

Since the tourism industry largely depends on preserved natural resources, while planning the business processes, the Company has established excellent quality and environmental protection management system by establishing the Safety Department in charge of health care, environmental protection and safety for all employees and guests. HACCP system has been implemented and certified in the hospitality sector of the Company according to the standard Codex Alimentarius which was renewed in all establishments in the years 2012/ 2013/ 2014/2015, which proved maintaining high standards in serving food.

The Company has continued to invest in improvement of the quality and advancement of its own business processes by establishing and certifying the quality management system according to standard HRN EN ISO 9001:2008 and implementing the environmental management system according to standard HRN EN ISO 14001.

DMK Ilirija Travel agency reached the first of three phases: "Travelife engaged". Travelife is a management and certification system that shows travel agencies and touroperators a way how to establish sustainable corporate social responsibility practices in their own offices and also in relation with suppliers. Our agency is dedicated to working on appropriate procedures for the sustainable operation management. The appointed sustainability coordinator, after having completed the training program, has been awarded personal Travelife certificate. The basic steps and practices are currently being implemented.

The Company has been awarded Croatian Business Tour 2014 - CBTour 2014, organized by Croatian Association for Energetics of 2010, which aims to encourage and promote creative, innovative and modern programs/projects /services in the field of business tourism for domestic and international market with an emphasis placed on sustainable development. The Company received the award for the project "Arsenal: Revitalized heritage monument for the purpose of organizing business events" in the category Best program of responsible tourism and the best team building program.

We are also holders of international environmental certificates especially relevant to tourism:

Since 2004, Marina Kornati has been the holder of "Blue Flag" for beaches and marinas, which is an international symbol of coast, sea and underwater protection,
Since 2013, the camp "Park Soline" has been the holder of the international eco label for accommodation facilities "Green Key", which is exclusively granted to accommodation facilities that reduce negative impacts on the environment through the optimization of energy consumption, waste management and sorting such waste, educating guests and employees about the most important aspects of sustainable development.
Camp "Park Soline" was selected among the

ten camps in Croatia for participation in the Ecocamping project, which is implemented in cooperation with the German Association Ecocamping, which aims to introduce the principles of sustainable development and ecology into the companies that provide accommodation services. In September 2015, the Association Ecocamping conducted the audit, after which in October 2015 the camp was awarded the Ecocamping certificate.

• In 2014, we participated in the pilot project "Green business in the hotel industry", organized by the Association of Employers in Croatian Hospitality, the leading Association of Employers in Croatian Hospitality, which aims to reduce operating costs and harmful effects on the environment and at the same time to introduce green business into Croatian hotels and achieve a balance between the economic development, the need for conservation of the environment and involvement of the community. As a part of this project, the hotel Ilirija**** has been awarded the basic certificate Sustainable hotel – Održivi hotel" for meeting sustainability criteria in its operations in the eight defined and observed areas (sustainability management, purchasing, sales, marketing and public relations, environment, energy efficiency and human resources).

The Company is among the first companies in Croatia that use the so-called green energy or energy derived from renewable sources.

By adopting the environmental management policy, we systematically, responsibly and sustainably implement the environmental protection policy across the whole Company, that on the one hand allows us to minimize the negative effects of the tourism activity on the environment and nature, and on the other hand to manage the environment and natural resources in our surrounding for the present and future generations in a high quality, responsible and sustainable manner.

corporate social responsibility

The basic principles of corporate social responsibility are an integral part of corporate values, embedded in long-term business strategy of the Company, business practice and processes to all stakeholders of the Company starting from the owners, shareholders, employees, current and future business partners and the community in which we conduct business operations, particularly considering the fact that the Company is the driving force not only of tourism, but also its overall economic development.

Corporate social responsibility in Ilirija d.d. is especially reflected in the following areas: environmental protection, employee relations and community relations:

• Environmental protection - our goal is to raise awareness of employees by providing training to them and improve the relation of employees and guests towards the conservation of and care for nature and our environment by business processes, undertake activities in the field of sustainable and responsible management of all forms and types of energy, systematic planning, implementation, monitoring and improvement of all activities in the field of environmental protection in order to minimize negative impacts on the nature and environment.

Employee Relations in the tourism industry a man is the key to success, therefore, the employees, as the key to success of the Company are assigned jobs that best suit their abilities, where by their knowledge, skills, enthusiasm and commitment they contribute to the further development and growth.
Community relation Systematically and actively through sponsorships and donations, recognizing the needs of the society, Ilirija d.d. supports, promotes and initiates a number of projects aimed at enhancing and improving the quality of life and projects of greater importance to the community, clearly underlining and confirming its commitment and support to the development and improvement of sports, culture, education and science, but also the promotion of corporate social responsibility.

Overview of donations and sponsorships of the Company by areas of donating and sponsoring in the year 2015

In 2015, the Company has through its philanthropic activity supported a total of 67 projects, followed by the individual requests by natural persons and organizations in the six (6) different areas (culture, science-education, health, sports, society and humanitarian program) of which 44 projects through donations activities and 23 projects through sponsorships.

The Company is the first tourism company that has received awards for corporate social responsibility CSR Index in the category of medium sized enterprises for the years 2011 and 2012, while in 2013 we were just one of the 12 Croatian companies that participated in the first organized competition for winning the unique European Prize for Corporate Social Responsibility for partnership, innovation and impact.

The Company is a member of HR PSOR (Croatian Business Council for Sustainable Development), involving all prominent, recognizable and successful companies of the Croatian economy, which in their operations apply and promote the principles of corporate social responsibility and sustainable development. Goran Ražnjević, President of the Company's Management Board has been selected as the President of the Management Council of HR PSOR for a one year's term of office.

As part of the international project "CSR for ALL" ("Corporate Social Responsibility for all") which was co-financed by the European Union and implemented by the International Organization of Employers (IOE) and Organizations of Employers from Croatia, Montenegro, Macedonia, Romania and Turkey, in which the initiative Croatian Employers' Association HUP's award for CSR best practice example was launched", which promotes the corporate social responsibility good practices in the following categories: Care for employees, Care for the environment and Care for the community, Ilirija d.d. actively participated in the entire project also including the initiative HUP's award for CSR best practice example" in which the Company was ranked third among the medium-sized enterprises in the category Care for employees for the project "Knowledge is power" - training for the employees and in-house trainings".

19. human resources

As at 31/12/2015 the Company had 189 employees, while the average number of employees based on working hours at the level of the year is 304. In 2015, in addition to 180 full-time employees, due to seasonality of the business operations, the Company hired over 200 seasonal employees, or a total of 400 employees. If we include other companies with business cooperation agreements concluded that perform nautical activity in Marina Kornati, Ilirija d.d. provides jobs for over 800 employees during the season. Not a single labor dispute has been initiated against the Company from the process of privatization to date.

One of the long-term goals of the company is the employee motivation, which in addition to financial remuneration is accomplished by enabling employees to work in an environment that ensures their professional development and training, while attending to their social needs, taking into account their personal and professional peculiarities, therefore the Company continuously and systematically invest in people as business process holders at all levels of the Company, their lifelong education and training, gaining knowledge about new tools and adoption of communication and sales skills as well as the guest treatment skills, while they are also trained to be flexible and creative in the working process.

In 2015, the Company initiated a series of training programs, workshops and seminars aimed at improving business standards, raising the quality of services, implementing the best practices in the tourism industry, strengthening the visibility and competitiveness of the Company, universality and standardization of the service, improving the food and beverage service, improving organizational, sales and marketing skills, business process and staff management skills, which contributed to an increase in employee satisfaction, creation of a stimulating and motivating working environment, improvement of the quality of services and products that we deliver to end-users of our services and improvement of business performances in food and drinks departments and profit centers, and hotel industry, nautical and camping sectors.

Such educational and training programs organized with an aim to improve professional, social and communication skills of employees and to stimulate their motivation were aimed at: getting a well trained employee who possesses the most recent knowledge and competences, creating a stimulating and motivating working environment in which every employee will be aware that he as an individual greatly contributes to the improvement of the business process in the company, improving the quality of products and services, and ultimately improving the operating results.

20. other

legal issues

Some attempts were made to bring the ownership of the Tennis center into question during the process of updating the land registries of the Cadastral Municipality Biograd according to the administrative decision.

With respect to disputes in which the Company participates either as a plaintiff or a defendant, we estimate that these disputes can neither significantly cause a disturbance in the Company's operations nor can they cause significant financial expenses for the Company nor negatively affect the current and future financial results of the Company.

changed accounting policy

There have been no changes in the accounting policies.

mergers and acquisitions

There have been no mergers and acquisitions.

uncertainty of collecting revenues or potential future costs

There are no such risks that may substantially affect the Company's financial operating results and can therefore be regarded as negligible.

21. notes

There are no particularly significant events that could substantially affect the Company's smooth operations, and further achievement of forecasted business results.

The Company owns all the proper permits to carry out the business activities, such as the decision on the classification, meeting minimum technical requirements for the operation, water management licenses, etc.

Reporting period: 01.01.2015. do 31.12.2015. Quarterly financial report TFI-POD

Tax number (MB):	03311953
Company registration number (MBS):	060032302
Personal identification number (OIB):	05951496767
Issuing company:	ILIRIJA d.d.
Postal code and place:	23210	BIOGRAD NA MORU
Street and house number:	TINA UJEVIĆA 7
E-mail address:	[email protected]
Internet address:	www.ilirijabiograd.com
Municipality/city code and name:	22	BIOGRAD NA MORU
County code and name:	13	ZADARSKA	Number of employees:	211
			(period end)
Consolidated report:	NE		NKD code:	55100

Companies of the consolidation subject (according to IFRS): Seat: MB:

Bookkeeping service: Contact person: STRPIĆ ZORKA (only surname and name) Telephone: 023/383178 Telefaks: 023/384564 E-mail address: [email protected] Family name and name: RAŽNJEVIĆ GORAN (person authorized to represent the company)

Documents disclosed:

Financial statements (Balance Sheet, Income Statement, Cash Flow Statement, Statement of Changes in Equity and notes to financial statements);
Management Interim Report;
Declaration of the persons responsible for preparing the issuer's statements;

M.P. (signature of the person authorized to represent the company)

Balance Sheet - as of 31. 12. 2015.

Company: ILIRIJA d.d.

Position	AOP	Previous period	Current period
1	2	3	4
A) RECEIVABELS FOR SUBSCRIBED NOT PAID CAPITAL	001
B) NON-CURRENT ASSETS (003+010+020+029+033)	002	294.951.783	300.424.757
I. INTANGIBLE ASSETS (004 to 009)	003	547.614	471.783
1. Expenditure for development	004
2. Concessions, patents, licenses, trademarks, service marks,	005
software and other rights
3. Goodwill	006
4. Advances for purchase of intangible assets	007
5. Intangible assets in progress	008
6. Other intangible assets	009	547.614	471.783
II. PROPERTY, PLANT AND EQUIPMENT (011 to 019)	010	294.364.169	299.912.974
1. Land	011	41.067.581	42.340.227
2. Buildings	012	209.416.762	224.502.143
3. Plant and equipement	013	30.553.209	32.154.204
4. Tools, working inventory and transportation assets	014
5. Biological assets	015
6. Advances for purchase of tangible assets	016	942.966	488.422
7. Tangible assets in progress	017	12.383.651	427.978
8. Other tangible assets	018
9. Investment in real-estate	019
III. NON-CURRENT FINANCIAL ASSETS (021 to 028)	020	40.000	40.000
1. Share in related parties	021	40.000	40.000
2. Loans to related parties	022
3. Participating interests (shares)	023
4. Loans to companies with participating interest	024
5. Investments in securities	025
6. Loans, deposits, etc.	026
7. Other non-current financial assets	027
8. Equity-accounted investments	028
IV. RECEIVABLES (030 to 032)	029	0	0
1. Receivables from related parties	030
2. Receivables arising from sales on credit	031
3. Other receivables	032
V. DEFERRED TAX ASSET	033
C) CURRENT ASSETS (035+043+050+058)	034	15.816.301	16.635.059
I. INVENTORIES (036 to 042)	035	2.275.940	2.160.647
1. Raw materials and supplies	036	2.275.940	2.160.647
2. Production in progress	037
3. Finished products	038

4. Merchandise	039
5. Advances for inventories	040
6. Long term assets held for sale	041
7. Biological assets	042
II. RECEIVABLES (044 to 049)	043	7.581.751	9.683.148
1. Receivables from related parties	044
2. Receivables from end-customers	045	4.427.436	6.513.026
3. Receivables from participating parties	046
4. Receivables from employees and members of the company	047	772.839	800.776
5. Receivables from government and other institutions	048	2.237.368	2.276.008
6. Other receivables	049	144.108	93.338
III. CURRENT FINANCIAL ASSETS (051 to 057)	050	5.849.432	4.453.388
1. Share in related parties	051
2. Loans to related parties	052
3. Participating interests (shares)	053
4. Loans to companies with participating interest	054
5. Investments in securities	055
6. Loans, deposits, etc.	056	5.849.432	4.453.388
7. Other financial assets	057
IV. CASH AND CASH EQUIVALENTS	058	109.178	337.876
D) PREPAYMENTS AND ACCRUED INCOME	059	144.248
E) TOTAL ASSETS (001+002+034+059)	060	310.912.332	317.059.816
F) OFF BALANCE SHEET ITEMS	061
EQUITY AND LIABILITIES
A) ISSUED CAPITAL AND RESERVES	062	177.858.715	220.353.306
(063+064+065+071+072+075+078)
I. SUBSCRIBED SHARE CAPITAL	063	124.693.000	150.857.300
II. CAPITAL RESERVES	064	829.039	8.921.539
III.RESERVES FROM PROFIT (066+067-068+069+070)	065	20.723.814	21.693.815
1. Legal reserves	066	6.610.343	7.610.343
2. Reserve for own shares	067	6.975.716	6.975.716
3. Treasury shares and shares (deductible items)	068	384.924	414.924
4. Statutory reserves	069
5. Other reserves	070	7.522.679	7.522.680
IV. REVALUATION RESERVES	071
V. RETAINED EARNINGS OR LOSS CARRIED FORWARD (073-	072	13.119.658	13.370.143
074)
1. Retained earnings	073	13.119.658	13.370.143
2. Loss carried forward	074
VI. NET PROFIT OR LOSS FOR THE PERIOD (076-077)	075	18.493.204	25.510.509
1. Net profit for the period	076	18.493.204	25.510.509
2. Net loss for the period	077
VII. MINORITY INTEREST	078

B) PROVISIONS (080 to 082)	079	0	0
1. Provisions for pensions, severance pay and similar liabilities	080
2. Provisions for tax liabilities	081
3. Other provisions	082
C) NON-CURRENT LIABILITIES (084 to 092)	083	89.409.176	59.934.774
1. Liabilites to related parties	084
2. Liabilities for loans, deposits, etc.	085
3. Liabilities to banks and other financial institutions	086	89.409.176	59.934.774
4. Liabilities for advances	087
5. Trade payables	088
6. Commitments on securities	089
7. Liabilities to companies with participating interest	090
8. Other non-current liabilities	091
9. Deferred tax liabilities	092
D) CURRENT LIABILITIES (094 to 105)	093	40.224.599	34.323.060
1. Liabilites to related parties	094
2. Liabilities for loans, deposits, etc.	095
3. Liabilities to banks and other financial institutions	096	13.539.427	3.824.843
4. Liabilities for advances	097
5. Trade payables	098	14.247.242	15.882.936
6. Commitments on securities	099	7.600.000	8.600.000
7. Liabilities to companies with participating interest	100
8. Liabilities to emloyees	101	1.244.687	1.131.821
9. Taxes, contributions and similar liabilities	102	2.672.755	4.015.023
10. Liabilities arising from share in the result	103
11. Liabilities arising from non-current assets held for sale	104
12. Other current liabilities	105	920.488	868.437
E) ACCRUED EXPENSES AND DEFERRED INCOME	106	3.419.842	2.448.676
F) TOTAL EQUITY AND LIABILITIES (062+079+083+093+106)	107	310.912.332	317.059.816
G) OFF BALANCE SHEET ITEMS	108
ADDITION TO BALANCE SHEET (only for consolidated financial
statements)
ISSUED CAPITAL AND RESERVES
1. Attributable to majority owners	109
2. Attributable to minority interest	110

Income statement - period 01. 01. 2015. to 31. 12. 2015..

Company: ILIRIJA d.d.

Position	AOP	Previous period		Current period
		Cummulative	Quarter	Cummulative	Quarter
1	2	3	4	5	6
I. OPERATING INCOME (112 to 113)	111	121.792.648	9.729.036	127.122.380	11.085.202
1. Sales revenues	112	118.988.218	8.862.262	125.275.838	10.782.147
2. Other operating revenues	113	2.804.430	866.774	1.846.542	303.055
II. OPERATING COSTS (115+116+120+124+125+12	114	93.137.885	21.011.438	92.799.366	21.511.961
6+129+130)
1. Change in inventories of work in progress	115
2. Material expenses (117 to 119)	116	37.150.150	7.939.993	37.974.413	7.878.082
a) Costs of raw materials	117	20.227.455	3.600.199	20.106.892	3.905.182
b) Cost of goods sold	118
c) Other material expenses	119	16.922.695	4.339.794	17.867.521	3.972.900
3. Employee benefits expenses (121 to 123)	120	32.942.681	7.450.424	29.763.375	6.743.374
a) Net salaries	121	19.493.919	4.399.600	17.872.540	4.047.379
b) Tax and contributions from salary expenses	122	8.695.524	1.957.417	7.511.127	1.694.650
c) Contributions on salary	123	4.753.238	1.093.407	4.379.708	1.001.345
4. Depreciation and amortisation	124	7.470.219	1.867.554	8.225.981	2.056.492
5. Other expenses	125	15.574.835	3.753.467	16.835.597	4.834.013
6. Write down of assets (127+128)	126	0	0	0	0
a) non-current assets (except financial assets)	127
b) current assets (except financial assets)	128
7. Provisions	129
8. Other operating costs	130
III. FINANCIAL INCOME (132 to 136)	131	136.259	34.386	484.269	298.660
1. Interest, foreign exchange differences, dividens	132
and similar income from related parties
2. Interest, foreign exchange differences, dividens	133	136.259	34.386	484.269	298.660
and similar income from third parties
3. Income from investments in associates and joint	134
ventures
4. Unrealised gains (income) from financial assets	135
5. Other financial income	136
IV. FINANCIAL EXPENSES (138 to 141)	137	5.355.803	965.477	4.030.686	806.609
1. Interest, foreign exchange differences, dividends	138
and similar income from related parties
2. Interest, foreign exchange differences, dividends	139	5.355.803	965.477	4.030.686	806.609
and similar income from third parties
3. Unrealised losses (expenses) from financial assets	140
4. Other financial expenses	141
V. SHARE OF PROFIT FROM ASSOCIATED COMPA	142
NIES

VI. SHARE OF LOSS FROM ASSOCIATED COMPA	143
NIES
VII. EXTRAORDINARY - OTHER INCOME	144	944.845	577.595	539.863	133.339
VIII. EXTRAORDINARY - OTHER EXPENSES	145	3.994.949	311.628	5.805.950	2.423.762
IX. TOTAL INCOME (111+131+142+144)	146	122.873.752	10.341.017	128.146.512	11.517.201
X. TOTAL EXPENSES (114+137+143+145)	147	102.488.637	22.288.543	102.636.002	24.742.332
XI. PROFIT OR LOSS BEFORE TAXES (146-147)	148	20.385.115	-11.947.526	25.510.510	-13.225.131
1. Profit before taxes (146-147)	149	20.385.115	0	25.510.510	0
2. Loss before taxes (147-146)	150	0	11.947.526	0	13.225.131
XII. TAXATION	151	1.891.911
XII. PROFIT OR LOSS FOR THE PERIOD (148-151)	152	18.493.204	-11.947.526	25.510.510	-13.225.131
1. Profit for the period (149-151)	153	18.493.204	0	25.510.510	0
2. Loss for the period (151-148)	154	0	11.947.526	0	13.225.131
ADDITION TO PROFIT AND LOSS ACCOUNT (only
for consolidated financial statements)
XIV. PROFIT OR LOSS FOR THE PERIOD
1. Attributable to majority owners	155
2. Attributable to minority interest	156
STATEMENT OF OTHER COMPREHENSIVE INCOME
(only for IFRS adopters)
I. PROFIT OR LOSS FOR THE PERIOD (=152)	157
II. OTHER COMPREHENSIVE INCOME/LOSS BEFORE	158	0	0	0	0
TAXES (159 to 165)
1. Exchange differences from international settlement	159
2. Changes in revaluation reserves of long-term tangi	160
ble and intangible assets
3. Profit or loss from re-evaluation of financial assets	161
held for sale
4. Profit or loss from cash flow hedging	162
5. Profit or loss from hedging of foreign investments	163
6. Share of other comprehensive income/loss from	164
associatied companies
7. Actuarial gains/losses from defined benefit plans	165
III. TAXATION OF OTHER COMPREHENSIVE IN	166
COME FOR THE PERIOD
IV. NET OTHER COMPREHENSIVE INCOME FOR THE	167	0	0	0	0
PERIOD (158 - 166)
V. COMPREHENSIVE INCOME OR LOSS FOR THE	168	0	0	0	0
PERIOD (157+167)
ADDITION TO STATEMENT OF OTHER COMPREHENSIVE INCOME (only for consolidated financial statements)
VI. COMPREHENSIVE INCOME OR LOSS FOR THE
PERIOD
1. Attributable to majority owners	169
2. Attributable to minority interest	170

Cash Flow Statement: indirected method ( period 01.01.2015. to 31.12.2015. )

Company: ILIRIJA d.d.

Position	AOP	Previous period	Current period
1	2	3	4
CASH FLOWS FROM OPERATING ACTIVITIES
	001	20.385.115	25.510.509
2. Depreciation and amortisation	002	7.470.219	8.225.981
3. Increase of current liabilities	003	8.504.499	2.431.752
4. Decrease of current receivables	004	194.396
5. Decrease of inventories	005		115.293
	006
	007	36.554.229	36.283.535
1. Decrease of current liabilities	008
2. Increase of current receivables	009		561.105
3. Increase of inventories	010	608.675
	011	5.676.539
	012	6.285.214	561.105
A1) NET INCREASE OF CASH FLOW FROM OPERATING	013	30.269.015	35.722.430
ACTIVITIES
A2) NET DECREASE OF CASH FLOW FROM OPERATING	014	0	0
ACTIVITIES
CASH FLOW FROM INVESTING ACTIVITIES
1. Proceeds from sale of non-current assets	015	1.322.298
	016
3. Interest received	017
4. Dividend received	018
5. Other proceeds from investing activities	019	265.753
	020	1.588.051	0
1. Purchase of non-current assets	021	18.140.950	13.698.955
	022
	023	251.770
	024	18.392.720	13.698.955
B1) NET INCREASE OF CASH FLOW FROM INVESTING ACTIV	025	0	0
ITIES
B2) NET DECREASE OF CASH FLOW FROM INVESTING	026	16.804.669	13.698.955
ACTIVITIES
CASH FLOW FROM FINANCING ACTIVITIES
1. Proceeds from issue of equity securities and debt securities	027		21.787.500
2. Proceeds from loans and borrowings	028	9.550.175
	029
	030	9.550.175	21.787.500
1. Repayment of loans and bonds	031	19.135.799	38.778.859
2. Dividends paid	032	3.740.790	3.740.790

3. Repayment of finance lease	033
4. Purchase of treasury shares	034	138.924	30.000
5. Other cash outflows from financing activities	035		1.032.628
VI. Total cash outflows from financing activities	036	23.015.513	43.582.277
C1) NET INCREASE OF CASH FLOW FROM FINANCING	037	0	0
ACTIVITIES
C2) NET DECREASE OF CASH FLOW FROM FINANCING	038	13.465.338	21.794.777
ACTIVITIES
Total increases of cash flows	039	0	228.698
Total decreases of cash flows	040	992	0
Cash and cash equivalents at the beginning of period	041	110.170	109.178
Increase of cash and cash equivalents	042		228.698
Decrease of cash and cash equivalents	043	992
Cash and cash equivalents at the end of period	044	109.178	337.876

STATEMENT OF CHANGES IN EQUITY period 01.01.2015. to 31.12.2015.

Position	AOP	Previous year	Current year
1	2	3	4
1. Subscribed share capital	001	124.693.000	150.857.300
2. Capital reserves	002	829.039	8.921.539
3. Reserves from profit	003	20.723.814	21.693.815
4. Retained earnings or loss carried forward	004	13.119.658	13.370.143
5. Net profit or loss for the period	005	18.493.204	25.510.509
6. Revaluation of tangible assets	006
7. Revaluation of intangible assets	007
8. Revaluation of available for sale assets	008
9. Other revaluation	009
10. Total equity and reserves (AOP 001 to 009)	010	177.858.715	220.353.306
11. Foreign exchenge differences from foreign invest	011
ments
12. Current and deferred taxes	012
13. Cash flow hedge	013
14. Change of accounting policies	014
15. Correction of significant mistakes of prior period	015
16. Other changes	016	12.824.185	42.494.591
17.Total increase or decrease of equity (AOP 011 to 016)	017	12.824.185	42.494.591

17 a. Attributable to majority owners	018
17 b. Attributable to minority interest	019

LIRIJA d.d.

BIOGRAD NA MORU

Biograd n/m 19/ 02/2016

Statement made by the persons responsible for preparation of financial statements for the period from 01 January 2015 to 31 December 2015

According to Article 403-410 of the Capital Market Act, we declare that:

Financial statements of Ilirija d.d. Biograd na Moru, Tina Ujevića 7, Tax No. OIB: 05951496767 for the period from January to December 2015 have been prepared in accordance with International Financial Reporting Standards and Croatian Accounting Act.

The financial statements give a true and fair view of the financial position of the Company as at 31/12/2015, operating results and cash flows of the Company in accordance with International Financial Reporting Standards.

The Management's Report gives a true presentation of operating results and position of the Company as at 31/12/2015.

Accounting Manager: Management Board:

Zorka Strpić Goran Ražnjević

AI assistant

Ilirija d.d. — Annual Report 2015

2092_10-q_2016-02-29_461f5f00-3da5-407b-8b65-f5723c64c29d.pdf

annual unaudited report for the fiscal year 2015

CONTENTS:

1.speech by goran ražnjević, president of the management board directed to the company's shareholders

2. overview of key performance indicators in the year 2015

3. key events and information for the year 2015

prizes and rewards:

certificates:

standards:

4. general details

5. CHRONOLOGICAL OVERVIEW OF THE COMPANY DEVELOPMENT

6.company's bodies 2.1 company management board

2.2 supervisory board

2.3 shareholders' assembly

7. COMPANY'S SUBSIDIARIES

8. AFFILIATED COMPANIES

Overview of the ten major shareholders of the Company as at 31/12/2015:

trading in shares of the company on the croatian capital market in the year 2015:

Movement in share price of Ilirija d.d. in the year 2015

Comparison of movement in the share price of Ilirija d.d. with indices of CROBEX and CROBEXTURIST

ILIRIJA RESORT HOTELS & VILLAS

marina kornati

CAMP PARK SOLINE

ilirija travel

Diffuse hotel ražnjevića dvori,

additional services and amenities:

hospitality:

11. OPERATING RESULTS

PHYSICAL OPERATING RESULTS

The overnight stays realized in the city Biograd na Moru in 1989, 1999, 2014 and 2015*

hotel industry sector

Arrivals and overnight stays per source markets in 2015 and comparison of the years 2014 and 2013

Overnight stays per source market in 2015

Capacity occupancy and occupancy days in 2015 and comparison to the year 2014

Percentage

Occupancy days

Monthly comparison of generated revenues/realized overnight stays in 2015 to the year 2014

nautical sector

Overview of physical turnover of Marina Kornati in the year 2015 and comparison to the year 2014

Vessels with berth contract in 2015 and comparison to the year 2014

Transit berth – inbound vessels in the year 2015 and comparison to the year 2014

Transith berth - overnight stay of vessels in the year 2015 and comparison to the year 2014

Revenues of Marina Kornati in the year 2015 separately by months and comparison to the year 2014

REVENUES OF MARINA KORNATI 2015 SEPERATE BY MONTHS

REVENUES OF MARINA KORNATI 2014 SEPERATE BY MONTHS

Revenues of Marina Kornati in the year 2015 separately by months and comparison to the year 2014 (continuing from previous page)

REVENUES OF MARINA KORNATI 2015 CUMULATIVE BY MONTHS

REVENUES OF MARINA KORNATI 2014 CUMULATIVE BY MONTHS

CAMPING SECTOR

Capacities of the Camp "Park Soline"

Arrivals and overnight stays per source markets in 2015 and comparison to the year 2014

Overnight stays per source market in 2015

Cumulative overview of daily and monthly occupancy of accommodation camp units "Park Soline" in 2015

Revenues generated by the camp in 2015 and comparison to the year 2014*

ilirija travel – complementary product

financial operating results

Overview of financial operating results from 2009 to 2015

1

2

3

Financial statements of the Company as at 31 December 2015 compared to the years 2013 and 2014

revenues by activities:

Structure and share of generated revenues by sectors for the year 2015 in the total revenues of the Company

fundamental financial indicators of the company's position as at 31/12/2015

1

3

2

operating and other expenses

financial expenses

extraordinary expenses

liquidity:

share split

earning per share

mergers and acquisitions

uncertainty of collecting revenues and potential future costs

13. business expectations and development plan of the company in the year 2016

14. long-term development of the company

15. operational risks of the company

Ilirija d.d. Annual Report 2015