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Institut IGH d.d. Interim / Quarterly Report 2012

Oct 31, 2012

2091_10-q_2012-10-31_9d9baeca-f2a3-4b4b-9b7a-23341e71e121.pdf

Interim / Quarterly Report

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Institut IGH d.d.

Janka Rakuše 1, 10000 Zagreb, CROATIA Tel: +385 1 6125 125, Fax: +385 1 6125 401, [email protected], www.igh.hr

MANAGEMENT BOARD REPORT ON BUSINESS RESULTS OF THE INSTITUT IGH AND ITS SUBSIDIARIES IN THE PERIOD FROM 1 JANUARY TO 30 SEPTEMBER 2012

The INSTITUT IGH, d.d., Zagreb, and its subsidiaries, provide professional services in the field of testing, design and project validation, works supervision and project management in the architectural and civil engineering spheres of design, and also conduct scientific research.

Institut IGH d.d. has 20 subsidiary companies providing services either in its core activity or in associated fields of activity, the exception being one subsidiary company that provides services in the field of hotel industry and tourism.

The registered seat of the mother company Institut IGH, d.d. is situated in Zagreb, Janka Rakuše 1, company registration No.: MB 3750272, personal identification No. OIB 79766124714.

A total of 979 persons were employed with the Institut IGH d.d. and its subsidiaries on 30 September 2012.

Supervisory Board and Management Board of Institut IGH, d.d.

The company's Supervisory Board members are:

Franjo Gregorić, PhD, President Dinko Tvrtković, BSc (Civ.Eng.), Member Branko Kincl, Academician, Member Prof. Vlatka Rajčić, PhD, Member Ante Stojan, BSc (Archit.), Member

Until 30 September 2012, the Company Management Board was formed by Professor Jure Radić Ph.D. only. As of 1 October 2012, the Company has a multi-member Management Board formed of:

SPLIT 21 000 Matice hrvatske 15 Tel:021/558-666 Fax:021/465-335

RUEKA 51 000 Slavka Tomašića 5 Tel:051/206-100 Fax:051/206-106

OSIJEK 31 000 Drinska 18 Tel:031/253-101 Fax:031/253-104

VARAŽDIN 42 000 Hallerova aleja 7 Tel:042/210-970. 042/210-722 Fax:042/211-285

DUBROVNIK 20 000 Vukovarska 8 Tel:020/412-489, 020/411-628 Fax:020/412-489

PULA 52 100 Rizzijeva 40 Tel:052/508-220 Fax:052/508-221

KARLOVAC 47 000 Primorska 16 Tel:047/416-987, 047/416-988 Fax:047/416-989

SISAK 44 000 Ferde Hefelea b.b. Tel:044/571-255 Fax:044/571-256

ZADAR 23 000 Dobriše Cesarića 1 Tel:023/220-910, 023/323-299 Fax:023/323-225

Mjerodavni sud:
Trgovački sud u Zagrebu, registarski uložak natičnim brojem (M85) 080000959

Temelini kapital:
105.668.000,00 kn MB: 3750272 018: 79766124714 uplačen u citalosti Poslovno banka: Feature Banks
2010
2010
2360000-1101243767 Broi izdanih dionica 264,170, nominalna
Vrijednost dionice 400 km Desizni račun kod Devizni račun kod
Zagrebačke banke d.d. Zagreb
SWIFT kod: ZABAHR2X

IBAN: HR7723600001101243767

prof.dr.sc. Jure Radić, predsjednik Uprave Veniamin Mezhibovskiy, član Uprave
Željko Grzunov, dipl.oec., član Uprave
mr.sc. Željko Štromar, član Uprave
mr.sc. Željko Štromar, član Uprave

.
Nadzorni odbor:
dr. sc. Franjo Gregurić, predsjednik

Prof. Jure Radić, PhD (Civ.Eng.), President Veniamin Mezhibovskiy, BSc, Member Željko Štromar, MSc (Civ.Eng.), Member Željko Grzunov, B.Econ., Member Tomislav Alpeza, LL.M., Member

Share capital

In accordance with the Decision adopted on the General Assembly meeting held on 26 April 2012, the share capital of the company increased by 42.236.000 HRK, i.e. from the amount of 63.432.000 HRK to the amount of 105.668.000 HRK, and consists of 158.580 ordinary shares mark IGH-R-A, nominal value of 400 HRK, and 105.590 ordinary shares mark IGH-R-B, nominal value of 400 HRK. The increase in the share capital has been registered with the Court register of the Commercial Court in Zagreb based on the Decision no: Tt-12/8912-2 dated 23 May 2012.

Business results of the Institut IGH D.D Group in the period from 1 January to 30 September 2012.

In the period from 1 January to 30 September 2012, the revenues of the Institut IGH and its subsidiaries amounted to HRK 228.7 million, out of which the amount of HRK 42.4 million was earned on foreign markets.

The consolidated revenues amounted to HRK 243,5 million and are 35% lower than the revenues generated over the same period in 2011.

The operating expenses amount to HRK 276.6 million which is a 20% reduction when compared to the same period last year. This particularly concerns reductions made in personnel costs which are lower by 24% with respect to the same period last year, primarily because of reduction in the number of employees based on the surplus employee placement program, and a decrease in the employee salaries.

Total financial revenues amount to HRK 14,6 million, and are formed of the interest and other financial revenues amounting to HRK 7,8 million, and of net income from positive exchange rate differences amounting to HRK 6.8 million.

Financial expenses in the period from January to September 2012 amount to HRK 41.5 million, out of which HRK 37.3 million are loan interest payments.

The Institut IGH d.d. and its subsidiaries realized in the period from January to September 2012 a consolidated pre-tax loss of HRK 60.8 million.

The consolidated after-tax loss amounts to HRK 62.4 million. The loss to minority interest is HRK 48.000, and the loss to mother-company shareholders is HRK 62.3 million.

The reporting period is marked by continuous slowdown of economic activities. In such circumstances, the Company marked a loss due to the reduction of consolidated revenues from sale (37% as compared to the same period in 2011), caused by stagnation of activities in the construction sector, and a standstill in the realization of planned infrastructural projects in the Republic of Croatia.

Negative financial results obtained in the reporting period are greatly influenced by the one-time value harmonization based on the Agreement concluded with Zagrebački holding d.o.o., in the scope of which both parties finally determined their respective rights and obligations arising from the Sales Contract relating to Zagrepčanka Project.

Over the reporting period, the Company continued to implement measures aimed at reducing costs, in full accordance with the Company Restructuring Program initiated in 2010. This has resulted in the twenty per cent reduction of business expenses, compared to the same period in 2011. Slower cost reduction when compared to income is inter alia due to the increase in the prices of energy, and the change of tax regulations where deduction of input tax has been prevented for the supply of certain goods and services.

To enable financial consolidation of the Company, the procedure aimed at increasing the Company share capital through money deposits was undertaken in the course of the second quarter.

The Company also issued convertible bonds in the amount of $\epsilon$ 10 million which are due on 6 June 2017. This measure has had a positive effect on solvency, and on optimization of the balance sheet structure.

As on 30 September 2012, the Company has had contracts in progress in the amount of HRK 604 million.

The Company's guiding principles for the oncoming period are: orientation to core business, increase of activities on the Russian Federation market and on regional markets, completion of the restructuring process, reduction of indebtedness through sale of investment projects, and continued development of Institut IGH d.d. as the centre of excellence.

Zagreb, 30 October 2012

On behalf of Institut IGH, d.d.;

Prof. Jure Radić, PhD CE, President of Management Board

dioničko

Željko Grzunov, B.Econ., Member of Management Board

Institut IGH d.d.

Janka Rakuše 1, 10000 Zagreb, CROATIA Tel: +385 1 6125 125, Fax: +385 1 6125 401, [email protected], www.igh.hr

STATEMENT OF MANAGEMENT BOARD ON THE RESPONSIBILITY FOR PREPARING CONSOLIDATED REPORTS FOR THE INSTITUT IGH GROUP, JSC

The Company's Management Board has to ensure that the Group's consolidated financial reports for the third quarter of 2012 are prepared in accordance with the Accountancy Law (Official Gazette 146/05) and in keeping with international accounting standards (Official Gazette 136/09, 08/10, 27/10, 65/10, 120/10, 58/11, 140/11) issued by the International Accounting Standards Board (IASB), so that these documents provide a true and unbiased picture of the Group's financial standing, business results, change in capital, and cash flow for the period under consideration.

After making due enquiries, the Management Board has a reasonable expectation that the Group has adequate resources to continue operation in the foreseeable future. Accordingly, the Group has prepared its financial reports under assumption that the Group will continue operating for an unlimited period of time.

During preparation of financial reports, the Management Board is responsible:

  • for the selection and, thereafter, for consistent use of appropriate accounting policies;
  • for giving reasonable and sensible assessments and estimates; $\bullet$
  • $\bullet$ for applying valid financial reporting standards and for making public and explaining every materially significant discrepancy discovered in financial reports:
  • for preparing financial reports under assumption of an unlimited period of operation, $\bullet$ except in cases when such assumption is inappropriate.

The Management Board is responsible for keeping proper accountancy records that will depict, to an acceptable level of accuracy, the financial standing and business results of the Group, in full compliance with the Accountancy Law and international accounting standards issued by the International Accounting Standards Board (IASB). The Management Board is also responsible for protecting and safeguarding the Group's assets, and hence for undertaking every measure it deems necessary to prevent and discover cases of fraud and other illegal activity.

Signed on behalf of the Management Board:

Prof. Jure Radić, Ph.D. (Civ. Eng.), President of Management Board

Željko Grzunov, B. Econ., Management Board Member

Kreat Institut IGH, d.d. Zagreb Janka Rakuše 1 10000 Zagreb

30 October 2012

Mjerodavni sud: Trgovački sud u Zagrebu,
registarski uložak s motičnim brojem (MBS) 080000959

Temelini kapital: M8: 3750272 105,668,000,00 kg 018: 79766124714 uplaćen u cijelosti Broj izdanih diomica 264.170, nominalno Vrijednost dionice 400 kn

Poslovno banka: Zagrebacka banka d.d. tiro-rocun zico-nocin
2360000-1101243767
Dovizzi račua kod
Zagrebačke banke d.d. Zagreb SWIFT had- 2ARANR2X IBAN: HR7723600001101243767 prof.dr.sc. Juro Radić, predsjednik Uprave
Veniamin Mezhibovskiy, član Uprave Željko Grzunov, dipl.oec., član Uprave
mr.sc. Željko Štromar, član Uprave islav Alpeza, dan Upr mr.sc. To

.
Nadzorni odbor: dr. sc. Franjo Gregurić, predsjednik

dionick $H_{\tilde{d}}$

06

AAJA a

SPLIT 21 000 Matice hrvatske 15 Tel:021/558-666 Fax: 021/465-335

RUEKA 51 000 Slavka Tomašića 5 Tel:051/206-100 Fax: 051/206-106

OSIJEK 31 000 Drinska 18 Tel:031/253-101 Fax: 031/253-104

VARAŽDIN 42 000 Hallerova aleja 7 Tel:042/210-970, 042/210-722 Fax: 042/211-285

DUBROVNIK 20 000 Vukovarska 8 Tel:020/412-489, 020/411-628 Fax:020/412-489

PULA 52 100 Rizzijeva 40 Tel:052/508-220 Fax:052/508-221

KARLOVAC 47 000 Primorska 16 Tel:047/416-987, 047/416-988 Fax:047/416-989

SISAK 44 000 Ferde Hefelea b.b. Tel:044/571-255 Fax: 044/571-256

ZADAR 23 000 Dobriše Cesarića 1 Tel:023/220-910, 023/323-299 Fax:023/323-225

Attachment 1.
Reporting period:
01.01.2012
do
30.09.2012
Quarterly financial statement of the entrepreneur - TFI-POD
Tax number (MB):
03750272
Company registration number
80000959
$(MBS)$ :
79766124714
Personal identification
number (OIB):
Issuing company: INSTITUT IGH D.D.
Postal code and place:
10000
ZAGREB
Street and house number: JANKA RAKUŠE 1
E-mail adress: [email protected]
Internet adress: http://www.institutigh.com
inicipality/city code and name:
ZAGREB
133
County code and name:
GRAD ZAGREB
133
Number of employees
979
Consolidated report:
YES
(quarter end)
NKD code:
7219
bmpanies of the consolidation subject (according to IFRS Seat: MB:
IGH MOSTAR D.O.O. MOSTAR, BIŠĆE POLJE BB 4227060470005
GEOTEHNIKA INŽENJERING D.O.O. ZAGREB, GRADIŠĆANSKA 26 01517597
IGH PROJEKTIRANJE D.O.O. ZAGREB, JANKA RAKUŠE 1 02441918
INCRO D.O.O. ZAGREB, BRANIMIROVA 71 01982516
IGH ENERGIJA D.O.O. ZAGREB, JANKA RAKUŠE 1 01819585
FORUM CENTAR D.O.O. ZAGREB, JAGODNJAK 17 01960229
IGH TURIZAM D.O.O. ZAGREB, JANKA RAKUŠE 1 01974378
PROJEKT ŠOLTA D.O.O. ZAGREB, JANKA RAKUŠE 1 02592363
VOĐENJE PROJEKATA D.O.O. ZAGREB, BIJENIČKA CESTA 8 02427648
EKONOMSKO TEHNIČKI ZAVOD D.D. OSIJEK, TRG A. STARČEVIĆA 7/II 03013669
PROJEKTNI BIRO PALMOTIĆEVA 45 D.O.O. ZAGREB, PALMOTIĆEVA 45 03222853
IGH KOSOVA Sha PRIŠTINA, KOSOVO
ARHITEKTURA THOLOS PROJEKTIRANJE D.O.O. ZAGREB. LOPAŠIĆEVA 6 01605291
HIDROINŽENJERING D.O.O. ZAGREB, OKUČANSKA 30 03685110
DP AQUA D.O.O. ZAGREB, SREDNJACI 16 01907522
TEHNIČKE KONSTRUKCIJE D.O.O. ZAGREB, VLAŠKA 79 02405865
MBM TERMOPROJEKT D.O.O. ZAGREB, NIKOLA PAVIĆA 20 00335967
CTP PROJEKT D.O.O. ZAGREB, SAVSKA CESTA 144A 02396173
RADELJEVIĆ D.O.O. ZAGREB, JANKA RAKUŠE 1 01938533
MARTERRA D.O.O. ZAGREB, BRANIMIROVA 71 28983577816

$\overline{\phantom{a}}$

Bookkeeping service:
Contact person: SPINDERK JADRANKA
(please enter only contact person's family name and name)
Telefax: 01 6125 404
Telephone: 01 6125 444
E-mail adress: [email protected]
Family name and name: prof. dr. JURE RADIĆ, dipl. ing. građ.; Željko Grzunov, dipl. oec.
(person authorized to represent the company)
Documents to be published: 1. Financial statements (balance sheet, profit and loss statement, cash flow statement, statement of changes in equity,
and notes to financial statements
2. Statement of persons responsible for the drawing-up of financial statements
3. Report of the Management Board on the Company Status
(signature of the person authorized to represent the company)

$\epsilon_{\rm max}$

BALANCE SHEET

$\zeta_{\rm R^2} = -\epsilon d$

as of 30.09.2012.

T.

INSTITUT IGH D.D.
Position AOP Previous period Current period
$\mathbf{1}$ $\mathbf{z}$ 3 4
A) RECEIVABLES FOR SUBSCRIBED AND NON - PAID CAPITAL
B) LONG - TERM ASSETS (003+010+020+029+033)
001
I. INTANGIBLE ASSETS (004 to 009) 002 754.059.438 750.556.253
1. Assets development 003
004
35.695.420 35.712.053
$\mathbf 0$
2. Concessions, patents, licence fees, merchandise and service brands, software and other rights 005 4.381.304 2.718.917
3. Goodwill 006 28.720.689 28.720.689
4. Prepayments for purchase of intangible assets 007 0 0
5. Intangible assets in preparation 008 2.593.427 4.272.447
6. Other intangible assets 009 0 C
II. TANGIBLE ASSETS (011 to 019) 010 518.409.354 518.112.104
1. Land 011 91.866.993 90.440.813
2. Buildings 012 265.069.800 254.928.025
3. Plant and equipment 013 23.971.526 21.328.799
4. Instuments, plant inventories and transportation assets 014 6.412.924 5.970.172
5. Biological assets
6. Prepayments for tangible assets
015 0 $\mathbf 0$
7. Tangible assets in preparation 016 171.958 1.126.210
8. Other material assets 017 28.929.001 31.130.083
9. Investment in buildings 018
019
1.159.191
100.827.961
1.369.934
111.818.068
III. LONG-TERM FINANCIAL ASSETS (021 to 028) 020 193.958.644 192.383.641
1. Shares (stocks) in related parties 021
2. Loans given to related parties 022 28.120.000 28.120.000
3. Participating interests (shares) 023 45.648.831 45.648.831
4. Loans to entrepreneurs in whom the entity hold participating interests 024 0
5. Investment in securities 025 $\mathbf 0$
6. Loans, deposits and similar assets 026 5.424.438 4.636.824
7. Other long - term financial assets 027 21.181.604 21.403.779
8. Investments accounted by equity method 028 93.583.771 92.574.207
IV. RECEIVABLES (030 to 032) 029 3.849.560 2.201.995
1. Receivables from related parties 030
2. Receivables based on trade loans
3. Other receivables
031 3.849.560 2.201.995
V. DEFERRED TAX ASSETS 032
C) SHORT TERMS ASSETS (035+043+050+058) 033
034
2.146.460
499.555.281
2.146.460
538.589.919
I. INVENTORIES (036 to 042) 035 127.031.097 139.773.657
1. Row material 036 900.186 290.827
2. Work in progress 037 120.335.411 133.700.626
3. Finished goods 038 2.646.935 2.646.935
4. Merchandise 039 2.148.565 2.127.645
5. Prepayments for inventories 040 1.000.000 1.007.624
6. Long - term assets held for sale 041 0
7. Biological assets 042 $\mathbf{0}$
II. RECEIVABLES (044 to 049) 043 323.767.684 298.483.967
1. Receivables from related parties
2. Accounts receivable
044 1.542.048 1.519.456
3. Receivables from participating entrepreneurs 045 143.894.900 158.295.899
4. Receivables from employees and shareholders 046
047
146.963
687.947
146.963
5. Receivables from government and other institutions 048 2.377.292 862.306
3.583.286
6. Other receivables 049 175.118.534 134.076.057
III. SHORT - TERM FINANCIAL ASSETS (051 to 057) 050 43.726.570 94.170.246
1. Shares (stocks) in related parties 051 0
2. Loans given to related parties 052 11.330.142 12.379.843
3. Participating interests (shares) 053
4. Loans to entrepreneurs in whom the entity hold participating interests 054 7.371.332 71.368.625
5. Investment in securities 055 10.823.215 3.514.383
6. Loans, deposits and similar assets 056 14.201.881 6.907.395
7. Other financial assets 057 0
IV. CASH AT BANK AND IN CASHIER 058 5.029.930 6.162.049
D) PREPAID EXPENSES AND ACCRUED INCOME
E) TOTAL ASSETS (001+002+034+059)
059 90.265.492 56.048.930
F) OFF-BALANCE SHEET NOTES 060
061
1.343.880.211
91.616.308
1.345.195.102
97.824.493
LIABILITIES AND CAPITAL
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078) 062 463.555.790 476.529.587
I. SUBSCRIBED CAPITAL 063 63.432.000 105.668.000
II. CAPITAL RESERVES 064 13.998.640 52.011.040
III. RESERVES FROM PROFIT (066+067-068+069+070) 065 8.068.491 4.671.291
1. Reserves prescribed by law 066 3.171.600 3.171.600
2. Reserves for treasury stocks 067 6.343.200 6.343.200
3. Treasury stocks and shares (deduction) 068 1.446.309 4.843.509
4. Statutory reserves 069 $\Omega$ $\mathbf 0$
5. Other reserves 070 $\Omega$ $\overline{0}$
IV. REVALUATION RESERVES 071 58.873.603 58.781.444
V. RETAINED EARNINGS OR ACCUMULATED LOSS (073-074) 072 251.421.550 252.124.655
1. Retained earnings 073 251.421.550 252.124.655
2. Accumulated loss 074 $\Omega$
VI. PROFIT / LOSS FOR THE CURRENT YEAR (076-077) 075 1.673.409 $-62.333.020$
1. Profit for the current year 076 1.673.409
2. Loss for the current year 077 $\Omega$ 62.333.020
VII. MINORITY INTEREST 078 66.088.097 65.606.177
B) PROVISIONS (080 to 082) 079 5.949.307 5.749.308
1. Provisions for pensions, severance pay and similar liabilities 080 2.360.607 2.360.607
2. Reserves for tax liabilities 081 $\mathbf{0}$ $\overline{0}$
3. Other reserves
C) LONG TERM LIABILITIES (084 to 092) 082 3.588.700 3.388.701
1. Liabilities to related parties 083 329.343.101 459.747.346
2. Liabilities for loans, deposits etc. 084 $\mathbf{0}$
$\mathbf{0}$
0
3. Liabilities to banks and other financial institutions 085 $\mathbf 0$
086 319.563.481 367.750.980
4. Liabilities for received prepayments 087 $\mathbf 0$
5. Accounts payable 088 4.061.301 2.077.216
6. Liabilities arising from debt securities 089 1.428.572 75.910.728
7. Liabilities to entrepreneurs in whom the entity holds participating interests 090 $\Omega$ $\mathbf 0$
8. Other long-term liabilities 091 80.788 9.799.463
9. Deferred tax liability 092 4.208.959 4.208.959
D) SHORT - TERM LIABILITIES (094 to 105) 093 542.130.443 399.465.675
1. Liabilities to related parties 094 1.305 805
2. Liabilities for loans, deposits etc. 095 55.408.315 15.766.048
3. Liabilities to banks and other financial institutions 096 162.029.926 164.480.515
4. Liabilities for received prepayments 097 5.194.320 5.282.443
5. Accounts payable 098 132.343.244 122.367.687
6. Liabilities arising from debt securities 099 98.432.756 9.196.715
7. Liabilities to enterpreneurs in whom the entity holds participating interests 100 $\mathbf{0}$
8. Liabilities to employees 101 14.289.387 21.427.385
9. Liabilities for taxes, contributions and similar fees 102 34.053.799 31.069.961
10. Liabilities to share - holders 103 418.052 418.052
11. Liabilities for long term assets held for sale 104 $\Omega$
12. Other short - term liabilities 105 39.959.339 29.456.064
E) DEFERRED SETTLEMENTS OF CHARGES AND INCOME DEFERRED TO FUTURE PERIOD 106 2.901.570 3.703.186
F) TOTAL CAPITAL AND LIABILITIES (062+079+083+093+106) 107 1.343.880.211 1.345.195.102
G) OFF-BALANCE SHEET NOTES 108 91.616.308 97.824.493
APPENDIX TO BALANCE SHEET (only for consolidated financial statements)
A) CAPITAL AND RESERVES
1. Attributed to equity holders of parent company 109 397.467.693 410.923.410
2. Attributed to minority interests 110 66.088.097 65.606.177

$\label{eq:3.1} \begin{array}{ccccc} \mathcal{O} & & & \mathcal{O} & \mathcal{O} \end{array}$

PROFIT AND LOSS ACCOUNT
for period 01.01.2012. to 30.09.2012

$\label{eq:1} \begin{array}{lll} \alpha & \alpha & \alpha \ \alpha & \beta & \beta \end{array}$

TOT DEFIOR UT.UT.ZUTZ. TO 30.09.ZUTZ
INSTITUT IGH D.D.
Position AOP Previous period Current period
Cummulative Periodical Cummulative Periodical
1 $\overline{\mathbf{2}}$ 3 4 5 6
I. OPERATING REVENUES (112+113) 111 379.572.382 137.143.739 243.499.953 83.990.016
1. Sales revenues 112 362.750.298 133.106.015 228.686.094 76.547.202
2. Other operating revenues 113 16.822.084 4.037.724 14.813.859 7.442.814
II. OPERATNG EXPENSES (115+116+120+124+125+126+129+130) 114 346.740.498 119.530.314 276.453.618 109.972.248
1. Changes in the value of work in progress and finished goods 115 12.315.572 $-62.173$ $-259.080$ $-123.080$
2. Material costs (117 to 119)
a) Raw material and material costs
116
117
128.631.435
27.607.223
48.693.699
9.424.385
92.513.394
18.609.944
31.814.619
6.775.490
b) Costs of goods sold 118 5.921.600 5.890.250 687.461 686.376
c) Other external costs 119 95.102.612 33.379.064 73.215.989 24.352.753
3. Staff costs (121 to 123) 120 145.595.864 47.331.814 110.059.959 34.677.839
a) Net salaries and wages 121 80.847.412 25.905.678 62.515.108 19.747.207
b) Costs for taxes and contributions from salaries 122 43.531.176 14.551.789 32.097.043 10.296.064
c) Contributions on gross salaries 123 21.217.276 6.874.347 15.447.808 4.634.568
4. Depreciation 124 16.934.930 5.809.965 15.028.192 4.721.626
5. Other costs 125 34.297.176 12.947.536 36.408.107 18.332.477
6. Impairment (127+128) 126 6.978.739 3.854.048 19.286.323 19.027.053
a) Impairment of long-term assets (excluding financial assets) 127 $\mathbf 0$
b) Impairment of short-term assets (excluding financial assets) 128 6.978.739 3.854.048 19.286.323 19.027.053
7. Provisions 129 $\Omega$ O 1.064.969 1.064.969
8. Other operating expenses 130 1.986.782 955.425 2.351.754 456.745
III. FINANCIAL INCOME (132 to 136) 131 19.655.509 695.608 14.640.592 10.451.385
1. Interest income, foreign exchange gains, dividends and similar income from related
parties
132 $\Omega$ 0
2. Interest income, foreign exchange gains, dividends and similar income from non-related 133 2.122.201 $\Omega$ 11.012.681 8.153.827
3. Share in income from affiliated entrepreneurs and participating interests 134 1.893.129 536.373 3.383.299 2.228.859
4. Unrealized gains (income) from financial assets 135 $\Omega$ $\mathcal{C}$
5. Other financial income 136 15.640.179 159.235 244.612 68.699
IV. FINANCIAL EXPENSES (138 to 141) 137 43.420.529 18.488.608 41.518.857 14.651.453
1. Interest expenses, foreign exchange losses and similar expenses from related parties 138 $\Omega$
2. Interest expenses, foreign exchange losses and similar expenses from non - related 139 42.907.293 18.350.109 39.762.448 13.524.646
3. Unrealized losses (expenses) on financial assets 140
4. Other financial expenses 141 513.236 138.499 1.756.409 1.126.807
V. INCOME FROM INVESTMENT SHARE IN PROFIT OF ASSOCIATED ENTREPRENEURS 142 $\Omega$
VI. LOSS FROM INVESTMENT SHARE IN LOSS OF ASSOCIATED ENTREPRENEURS
VII. EXTRAORDINARY - OTHER INCOME
143 3.096.209 435.917 989.564 201.694
VIII. EXTRAORDINARY - OTHER EXPENSES 144 $\mathbf{0}$
0
$\Omega$
IX. TOTAL INCOME (111+131+142 + 144) 145
146
399.227.891 137.839.347 258.140.545 94.441.401
X. TOTAL EXPENSES (114+137+143 + 145) 147 393.257.236 138.454.839 318.962.039 124.825.395
XI. PROFIT OR LOSS BEFORE TAXATION (146-147) 148 5.970.655 $-615.492$ $-60.821.494$ -30.383.994
1. Profit before taxation (146-147) 149 5.970.655 $\Omega$ $\Omega$
2. Loss before taxation (147-146) 150 0 615.492 60.821.494 30.383.994
XII. PROFIT TAX 151 3.710.114 1.359.726 1.559.270 54.362
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151) 152 2.260.541 $-1.975.218$ $-62.380.764$ $-30.438.356$
1. Profit for the period(149-151) 153 2.260.541 $\mathbf 0$ $\Omega$
2. Loss for the period (151-148) 154 $\overline{0}$ 1.975.218 62.380.764 30.438.356
XIV. PROFIT OR LOSS FOR THE PERIOD
1. Attributed to equity holders of parent company 155 1.739.495 $-1.879.680$ $-62.333.020$ $-30.462.608$
2. Attributed to minority interests 156 521.046 $-95.538$ $-47.744$ 24.252
STATEMENT OF COMPREHENSIVE INCOME (IFRS)
I. PROFIT OR LOSS FOR THE PERIOD (= 152) 157 2.260.541 $-1.975.218$ $-62.380.764$ $-30.438.356$
II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAX (159 to 165) 158 56.682 67.836 $-49.000$ $-24.345$
1. Exchange differences on translation of foreign operations 159 56.682 67.836 $-49.000$ $-24.345$
2. Movements in revaluation reserves of long-term tangible and intangible assets 160 $\bf{0}$ $\overline{0}$
3. Profit or loss from revaluation of financial assets available for sale 161 $\mathbf{0}$ $\overline{0}$ 0 $\overline{0}$
4. Gains or losses on efficient cash flow hedging 162 $\bf{0}$ $\bf{0}$ $\theta$ $\bf 0$
5. Gains or losses on efficient hedge of a net investment in foreign countries 163 $\mathbf{0}$ $\Omega$ $\epsilon$ $\pmb{0}$
6. Share in other comprehensive income / loss of associated companies 164 $\Omega$ $\overline{0}$ $\mathbf 0$ $\boldsymbol{0}$
7. Actuarial gains / losses on defined benefit plans 165 $\overline{0}$ $\theta$ $\mathbf 0$
III. TAX ON OTHER COMPREHENSIVE INCOME FOR THE PERIOD 166 $\overline{0}$ $\bf{0}$ $-9.800$ $-4.869$
IV. NET OTHER COMPREHENSIVE INCOME/ LOSS FOR THE PERIOD
$(158-166)$
167 56.682 67.836 $-39.200$ $-19.476$
V. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD(157+167)
APPENDIX to Statement of comprehensive income (only for consolidated financial statements)
168 2.317.223 $-1.907.382$ $-62.419.964$ $-30.457.832$
VI. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD
1. Attributed to equity holders of parent company 169 1.796.177 $-1.811.844$ $-62.372.220$ $-30.482.084$
2. Attributed to minority interests 170 521.046 $-95.538$ $-47.744$ 24.252

STATEMENT OF CASH FLOWS - Indirect method period 01.01.2012. to 30.09.2012

INSTITUT IGH D.D.
Position
AOP Previous
period
Current period
1 $\overline{2}$ 3 4
CASH FLOW FROM OPERATING ACTIVITIES
1. Profit before tax 001 5.970.655 $-60.821.494$
2. Depreciation 002 16.934.930 15.028.192
3. Increase in short-term liabilities 003 $\bf{0}$
4. Decrease in short term receivables 004 $\mathbf{0}$ 25.283.717
5. Decrease in inventories 005 16.817.496
6. Other cash flow increases 006 46.251.356 118.736.313
I. Total increase in cash flow from operating activities (001 to 006) 007 85.974.437 98.226.728
1. Decrease in short - term liabilities 008 39.959.272 142.664.768
2. Insrease in short - term receivables 009 73.833.086
3. Increase in inventories 010 0 12.742.560
4. Other cash flow decreases 011 $\Omega$
II. Total decrease in cash flow from operating activities (008 to 011) 012 113.792.358 155.407.328
A1) NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (007-012) 013 $\mathbf{0}$
A2) NET DECREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007) 014 27.817.921 57.180.600
CASH FLOW FROM INVESTING ACTIVITIES
1. Cash flow from sale of long - term tangible and intangible assets 015 501.830 334.284
2. Cash inflows from sale of equity and debt financial instruments 016 31.300.000
3. Interest receipts 017 1.283.820 699.683
4. Dividend receipts 018 $\Omega$
5. Other cash inflows from investing activities 019 2.048.795 4.293.710
III. Total cash inflows from investing activities(015 to 019) 020 35.134.445 5.327.677
1. Cash outflows for purchase of long - term tangible and intangible assets 021 7.297.164 3.897.289
2. Cash outflows for purchase of equity and debt financial instruments 022 31.300.000
3. Other cash outflows from investing activities 023 $\mathbf{0}$ 66.451.993
IV. Total cash outflows from investing activities (021 to 023) 024 38.597.164 70.349.282
B1) NET INCREASE OF CASH FLOW FROM INVESTING ACTIVITIES(020-024) 025 $\Omega$
B2) NET DECREASE OF CASH FLOW FROM INVESTING ACTIVITIES(024-020) 026 3.462.719 65.021.605
CASH FLOW FROM FINANCING ACTIVITIES
1. Cash receipts from issuance of equity and debt financial instruments 027 75.719.107 155.770.260
2. Cash inflows from loans, debentures, credits and other borrowings 028 60.114.572 172.432.268
3. Other cash inflows from financing activities 029 $\bf{0}$
V. Total cash inflows from financing activities (027 to 029) 030 135.833.679 328.202.528
1. Cash outflows for repayment of loans and bonds 031 157.690.674 205.688.714
2. Dividends paid 032 85.345 118.640
3. Cash outflows for finance lease 033 2.151.068 2.972.482
4. Cash outflows for purchase of own stocks 034
5. Other cash outflows from financing activities 035 0 3.397.200
VI. Total cash outflows from financing activities (031 do 035) $\pmb{0}$
C1) NET INCREASE OF CASH FLOW FROM FINANCING ACTIVITIES (030-036) 036 159.927.087 212.177.036
C2) NET DECREASE OF CASH FLOW FROM FINANCING ACTIVITIES (036-030) 037 0 116.025.492
Total increases of cash flows $(013 - 014 + 025 - 026 + 037 - 038)$ 038 24.093.408
Total decreases of cash flows $(014 - 013 + 026 - 025 + 038 - 037)$ 039 $\Omega$
Cash and cash equivalents at the beginning of period 040 55.374.048 6.176.713
Increase in cash and cash equivalents 041 73.679.933 15.853.145
Decrease in cash and cash equivalents 042 $\overline{0}$
Cash and cash equivalents at the end of period 043 55.374.048 6.176.713
044 18.305.885 9.676.432

STATEMENT OF CHANGES IN EQUITY
01.01.2012 to 30.09.2012

from

$\tilde{\mathbf{u}}$

s.

Position AOP Previous year Current year
2 က 4
1. Subscribed capital $\overline{001}$ 63.432.000 105.668.000
2. Capital reserves 002 13.998.640 52.011.040
3. Reserves from profit 003 8.068.491 4.671.291
4. Retained earnings or accumulated loss 004 251.421.550 252.124.655
5. Profit / loss for the current year 005 1.673.409 -62.333.020
6. Revaluation of long - term tangible assets 006 52.379.202 52.332.795
7. Revaluation of intangible assets 007 $\circ$ $\circ$
8. Revaluation of financial assets available for sale 008 6.472.994 6.472.994
9. Other revaluation 009 $\circ$ $\circ$
10. Total capital and reserves (AOP 001 to 009) 010 397.446.286 410.947.755
1. Currency gains and losses arising from net investments in foreign operations D11 21.407 $-24.345$
12. Current and deferred taxes (part) 012 $\circ$
3. Cash flow hedging 013 $\circ$
14. Changes in accounting policies 014 $\circ$
5. Correction of significant errors in prior periods 015 $\circ$
16. Other changes in capital 016 0
capital (AOP 011 to 016)
17. Total increase or decrease in
017 21.407 $-24.345$
parent company
17 a. Attributed to equity holders of
018 397.467.693 410.923.410
17 b. Attributed to minority interst 019 66.088.097 65.606.177

Items decreasing the capital are entered with a negative number sign
Data entered under AOP marks 001 to 009 are entered as situation on the Balance Sheet date