Jadran d.d. — Interim / Quarterly Report 2018

Apr 30, 2018

JADRAN D.D., CRIKVENICA

TEMPORARY UNAUDITED BUSINESS MANAGEMENT REPORT

$I - III / 2018.$

In the period from January to March 2018, Company Jadran d.d. achieved a total of 6.145 overnight stays which is 34,5% less overnight stays than in the same period of 2016. Considering that during the same period last year, almost 41% of the overnight stays refers to workers reconstructing the hotel Esplanade and excluding those overnight stays, in 2018 Jadran d.d. achieved 12.5% more commercial overnight stays than in the same period 2017.

The largest increase in number of overnight stays in 2018 were achieved by hotels Esplanade, Katarina and International.

In the period from January to March 2018, Company achieved 5% more total incomes, and 11% more expenses than in the same period in 2017. In the structure of income in 2018, 30% more income from accommodation was achieved than in the same period of 2017, 7% less income from food and beverages than in the same period in 2017 and 2% more other incomes were achieved compared to the same period in 2017.

In 2018, the food expense decreased by 16% compared to the same period of 2017, energy costs increased by 8% over the same period of 2017, while the cost of maintaining the facilities decreased by 60% over the same period of 2017, and cost of wages increased by 30% over the same period of 2017. From January to March 2018 amortization expense increased by 22% over the same period of 2017.

Financial incomes are 72% less than in the same period last year, while financial expenses are $up$ by 50% over the same period in 2017.

The loss in the period from January to March 2018 is 14% higher than the loss achieved in the same period in 2017.

In Crikvenica, 27.04.2018.

Management Board Member

Marija Galjanić Sovar

Management Board President

Pero Matić

Jadran d.d. za hotelijerstvo i turizam, Bana Jelačića 16, HR-51260 Crikvenica | www.jadran-crikvenica.hr

Uprava: $T: +385(0)51241222$ $F: +385(0)51241632$ E: uprava@jadran-crikvenica.hr

Marketing: $T: +385(0)51241970$ $F: +385(0)51241975$ E: marketing@jadran-crikvenica.hr

OIB: 56994999963 Privredna banka d.d. 2340009-1110722690 IBAN: HR4323400091110722690 SWIFT: PBZGHR2X

Temeljni kapital iznosi 491.316.690,00 kn uplaćen u cijelosti podijeljen na 49.131.669 redovnih dionica nominalnog iznosa 10,00 kuna svaka. Društvo je upisano u Sudski registar Trgovačkog suda u Rijeci pri Trgovačkom sudu u Rijeci pod MBS: 040000817. Predsjednik Uprave: mr. sc. Pero Matić, Članica Uprave: Marija Galjanić Sovar, dipl. oec. Predsjednik Nadzornog odbora: Ivo Bašić, dipl.

ENCLOSURE 1
Reporting period:	01.01.2018. to	31.03.2018.
	Quarterly Financial Report TFI-POD
Tax number (MB): 03145662
Registration number (MBS): 040000817
Personal identification 56994999963 number (OIB):
Issuer: JADRAN D.D., CRIKVENICA
Postal code and location: 51260	CRIKVENICA
Street and number: Bana Jelačića 16
E-mail: uprava@jadran-crikvenica.hr
Internet address: www.jadran-crikvenica.hr
Code and city / municipality CRIKVENICA 53
Code and county 8	PRIMORSKO-GORANSKA	Number of employees: 216
Consolidated Report NO		(at the end of year) Business activity code: 5510
Entities in consolidation (according to IFRS)	Registered seat:	Tax number (MB):
Book-keeping office:
Contact person Natali Ivančić Majetić
(Name and surname of contact person)
Telephone: +385 (0)51 800 482		Telefaks: +385 (0)51 241 349
E-mail: financije@jadran-crikvenica.hr
Name and surname: Pero Matić (authorized representatives)
Documents to be published:
2. Management Commentary Statement with notes	1. Financial Statements (Balance Sheet, Income statement, Cash Flow Statement, Statement of Changes in Equity)
	3. Responsibility of the Management for the preparation of the financial statements
		V
	(sea	(signature of authorized representative)
	za hotelijerstvo i turizam

Balance Sheet
as at 31 March 2018

asal 31 March 2018 Issuer: JADRAN D.D., CRIKVENICA
Item	AOP	Previous period	Current period
$\mathbf{1}$	$\overline{2}$	3	4
A) RECEIVABLES FOR REGISTARED UNPAID CAPITAL
B) NON CURRENT ASSETS (003+010+020+029+033)	001
I. INTANGIBLE ASSETS (004 do 009)	002	606.675.945	632.077.883
1. Research & Development expenditure	003	305.592	194.026
2. Patents, licences, royalties, trade marks, software&similar rights	004
3. Goodwill	005	296.207	194.026
4. Prepayments for intangible assets	006
5. Intangible assets under construction	007
6. Other intangible assets	008	9.385
II. PROPERTY, PLANT AND EQUIPMENT (011 do 019)	009
1. Land	010	602.823.642	628.337.146
2. Property	011	298.461.517	298.373.064
3. Plants and equipment	012	265.376.335	299.769.885
4. Tools, plants&vehicles	013	15.660.239	28.300.142
5. Biological asset	014	287.849	241.981
6. Prepayments for tangible assets	015
7. Assets under construction	016
8. Other tangible assets	017	23.037.702	1.652.074
9. Investments property	018
III. FINANCIAL ASSETS (021 do 028)	019
1. Investments in subsidiaries	020	3.212.240	3.212.240
2. Loans to subsidiaries	021
	022
3. Participating interests (stakes) 4. Loans to participating interest	023
	024
5. Investments in securities	025
6. Loans & deposits	026
7. Other non-current financial assets	027	3.212.240	3.212.240
8. Investment accounted by equity method	028
IV. RECEIVABLES (030 do 032)	029	$\Omega$
1. Receivables from subsidiaries	030
2. Receivables from credit sales	031
3. Other receivables	032
V. DEFERRED TAX ASSETS	033	334.471	334.471
C) CURENT ASSETS (035+043+050+058)	034	6.153.235	7.158.031
I. INVENTORIES (036 do 042)	035	556.487	553.591
1. Raw materials & consumables	036	544.668	539.791
2. Work in progress	037
3. Products	038
4. Merchandise	039	11.819	13.800
5. Prepayments for inventories	040
6. Other available-for-sale assets	041
7. Biological asset	042
II. RECEIVABLES (044 do 049)	043	2.700.243	4.043.442
1. Receivables for trade debt of subsidiaries	044
2. Trade receivables	045	2.367.275	2.246.070
3. Receivables for trade debts of participating entities	046
4. Amounts receivable from employees	047	25.777	32.091
5. Receivables from government agencies	048	71.884	1.170.555
6. Other receivables	049	235.307
III. FINANCIAL ASSETS (051 do 057)	050		594.726
1. Investments in subsidiaries	051
2. Loans to subsidiaries	052
3. Participating interests (stakes)
4. Loans to participating interest	053
5. Investments in securities	054
6. Loans & deposits	055
7. Other financial assets	056	$\mathbf 0$	$\mathbf{0}$
IV. CASH AND CASH EQUIVALENTS	057
D) PREPAYMENTS AND ACCRUED INCOME	058	2.896.505	2.560.998
E) TOTAL ASSETS (001+002+034+059)	059	1.635.646	2.020.605
F) OFF-BALANCE SHEET ITEMS	060	614.464.826	641.256.519
	061

EQUITY AND LIABILITES
A) EQUITY (063+064+065+071+072+075+078)	062	519.738.813	514.335.781
I. SHARE CAPITAL	063	491.316.690	491.316.690
II. CAPITAL RESERVES	064	25.401.322	25.401.322
III. RESERVES FROM PROFIT (066+067-068+069+070)	065	$\Omega$
1. Legal reserves	066
2. Reserves for treasury shares	067
3. Treasury shares and stakes (less)	068
4. Statutory reserves	069
5. Other reserves	070
IV. REVALUATION RESERVES	071
V. RETAINED EARNINGS (073-074)	072	11.586.151
1. Retained earnings	073	11.586.151	7.355.501
2. Loss brought forward			7.355.501
VI. PROFIT OR LOSS FOR THE FINANCIAL YEAR (076-077)	074
1. Profit for the financial year	075	8.565.350	9.737.732
2. Loss for the financial year	076
VII. MINORITY INTEREST	077	8.565.350	9.737.732
B) PROVISIONS (080 do 082)	078
1. Provisions for redundancy costs	079	839.413	885.032
2. Provisions for tax obligations	080	392.923	438.542
3. Other provisions	081
C) NON-CURRENT LIABILITIES (084 do 092)	082	446.490	446.490
	083	67.842.225	93.486.997
1. Amounts payable to subsidiaries	084
2. Liabilities for loans, deposits and other	085
3. Liabilities towards banks and other financial institutions	086	58.379.411	84.935.656
4. Amounts payable for prepayment	087
5. Trade payables	088
6. Amounts payable for securities	089
7. Liabilities toward participating interests	090
8. Other non-current liabilities	091	9.462.814	8.551.341
9. Deffered tax	092
D) CURRENT LIABILITIES (094 do 105)	093	23.241.303	31.562.328
1. Amounts payable to subsidiaries	094
2. Liabilities for loans, deposits and other	095	448,000	500.946
3. Liabilities towards banks and other financial institutions	096	2.105.138	6.307.416
4. Amounts payable for prepayment	097	8.777.047	12.607.224
5. Trade payables	098	8.940.404	9.036.127
6. Amounts payable for securities	099
7. Liabilities toward participating interests	100
8. Amounts payable to employees	101	1.038.110	1.137.365
9. Liabilities for taxes and contributions	102	1.919.104	985.894
10. Dividend payables	103
11. Liabilities directly associated with the assets classified as held for sale	104
12. Other current liabilities	105	13,500
E) ACCRUED CHARGES AND DEFERRED REVENUE	106	2.803.072	987.356
F) TOTAL EQUITY AND LIABILITIES (062+079+083+093+106)	107	614.464.826	986.381
G) OFF-BALANCE SHEET ITEMS	108		641.256.519
ANNEX TO THE BALANCE SHEET (to be filled in by entrepreneur submitting consolidated financial report)
A) CAPITAL AND RESERVES
1. Attributable to equity holders of the parent company's capital
2. Attributable to minority interest	109
	110

1.: APPENDIX TO THE BALANCE SHEET (to be filled in by entites who submitting consolidated financial statements). $\overline{N}$

INCOME STATEMENT
for the period 01 January 2018 to 31 March 2018

Issuer: JADRAN D.D., CRIKVENICA

Item	AOP		Previous period		Current period
		Cumulative	Quarter	Cumulative	Quarter
$\mathbf{1}$ OPERATING INCOME (112+113)	$\overline{2}$	$\overline{\mathbf{3}}$	4	5	6
1. Sales revenue	111	2.915.081	2.915.081	3.065.858	3.065.858
2. Other operating income	112	2.079.127	2.079.127	2.261.160	2.261.160
II. OPERATING EXPENSES (115+116+120+124+125+126+129+130)	113	835.954	835.954	804.698	804.698
1. Changes in inventories of finished products and work in progress	114	11.060.978	11.060.978	12.150.461	12.150.461
2. Raw material and consumables used (117 do 119)	115
a) Cost of raw materials & consumables	116	4.401.502	4.401.502	3.637.461	3.637.461
b) Cost of goods sold	117	1.597.794	1.597.794	1.530.057	1.530.057
c) Other costs	118	3.082	3.082	1.371	1.371
3. Staff costs (121 do 123)	119	2.800.626	2.800.626	2.106.033	2.106.033
a) Net salaries	120	3.559.330	3.559.330	4.687.038	4.687.038
	121	2.269.406	2.269.406	2.886.331	2.886.331
b) Employee income tax and contributions	122	804.715	804.715	1.176.707	1.176.707
c) Employer's contributions	123	485.209	485.209	624.000
4. Depreciation and amortisation expense	124	2.171.083	2.171.083	2.655.901	624.000
5. Other costs	125	893.230	893.230		2.655.901
6. Impairment losses (127+128)	126			1.170.061	1.170.061
a) non-current assets (except financial assets)		0	$\Omega$	$\mathbf{0}$
b) current asssets (except financial assets)	127
7. Provisions	128
8. Other operating expenses	129	$\circ$	$\Omega$	$\circ$
III. FINANCIAL INCOME (132 do 136)	130	35.833	35.833	$\mathbf 0$
	131	20.827	20.827	5.806	5.806
1. Interest, foreign exhange gains, dividends and other income from related parties	132
2. Interest, foreign exchange gains, dividends and other income from non-related and other
entities	133	20.827	20.827	5.806	5.806
3. Income from associates and ownership interests	134
4. Unrealized gains	135
5. Other financial income	136
IV. FINANCIAL EXPENSES (138 do 141)
1. Interest, foreign exchange losses and other expenses with related parties	137	440.280	440.280	658.935	658.935
2. Interest, foreign exchange differences and other expenses with non-related and other	138
entities	139	440.280	440.280
3. Unrealized losses				658.935	658.935
4. Other financial expenses	140
V. SHARE OF INCOME OF ASSOCIATES	141
	142
VI. SHARE OF LOSS OF ASSOCIATES	143
VII. EXTRAORDINARY - OTHER INCOME	144
VIII. EXTRAORDINARY - OTHER EXPENSES	145
IX. TOTAL INCOME (111+131+142 + 144)	146	2.935.908
X. TOTAL EXPENSES (114+137+143 + 145)	147		2.935.908	3.071.664	3.071.664
XI. PROFIT OR LOSS BEFORE TAX (146-147)		11.501.258	11.501.258	12.809.396	12.809.396
1. Profit before tax (146-147)	148	8.565.350	8.565.350	9.737.732	9.737.732
2. Loss before tax (147-146)	149
XII. INCOME TAX EXPENSE	150	8.565.350	8.565.350	9.737.732	9.737.732
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151)	151
1. Profit for the period (149-151)	152	8.565.350	8.565.350	9.737.732	9.737.732
2. Loss for the period (151-148)	153
	154	8.565.350	8.565.350	9.737.732	9.737.732
ANNEX TO THE PROFIT AND LOSS ACCOUNT (to be filled in by entities submitting consolidated financial statements)
XIV. PROFIT OR LOSS FOR THE PERIOD
1. Attributable to owners of the company	155
2. Attributable to non-controlling interests	156
STATEMENTS OF COMPREHENSIVE INCOME (to be filled by entities who work in compliance with IFRS)
I. PROFIT OR LOSS FOR THE PERIOD (= 152)
II. OTHER COMPREHENSIVE INCOME /LOSS BEFORE TAX (159 do 165)	157	$-8.565.350$	$-8.565.350$	$-9.737.732$	$-9.737.732$
1. Exchange differences arising from foreign operations	158
2. Revaluation of non-current assets and intangible assets	159
	160
3. Gains or loss available for sale investments	161
4. Gains or loss on net movement on cash flow hedges
	162
5. Gains or loss on net investments hedge	163
6. Share of the other comprehensive income/loss of associates	164
7. Acturial gain / loss on post employment benefit obligations	165
III. TAX ON OTHER COMPREHENSIVE INCOME OF THE PERIOD	166
IV. NET OTHER COMPREHENSIVE INCOME OR LOSS FOR THE YEAR (158-166)	167
V. TOTAL COMPREHENSIVE INCOME/LOSS FOR THE PERIOD (157+167)
APPENDIX Statement of Comprehensive Income (to be filled in by entities submitting consolidated financial statements)	168	$-8.565.350$	$-8.565.350$	$-9.737.732$	$-9.737.732$
VI. TOTAL COMPREHENSIVE INCOME/LOSS FOR THE PERIOD
1. Attributable to owners of the company
2. Attributable to non-controlling interests	169
	170

CASH FLOW STATEMENT - Indirect method in the period 01 January 2018 to 31 March 2018

Item	AOP	Previous period	Current period
1	$\overline{2}$	3	4
CASH FLOW FROM OPERATING ACTIVITIES
1. Profit before tax	001	$-4.230.650$	$-9.737.732$
2. Depreciation and amortisation	002	9.556.717	2.655.901
3. Increase in liabilities	003	2.299.796	6.655.632
4. Decrease in receivables	004		755.081
5. Decrease in inventories	005
6. Other increase in cash flow	006	45.619	189.412
I. Total increase in operating cash flow (001 do 006)	007	7.671.482	518.294
1. Decrease in liabilities	008
2. Increase in receivables	009	226.872	$\circ$
3. Increase in inventories	010	104.347	91.924
4. Other decrease in cash flow	011	1.043.536	320.720
II. Total decrease in operating cash flow (008 do 011)	012	1.374.755	412.644
A1) NET INCREASE IN OPERATING CASH FLOW $(007 - 012)$	013	6.296.727	105.650
A2) NET DECREASE IN OPERATING CASH FLOW $(012-007)$	014
CASH FLOW FROM INVESTMENT ACTIVITIES
1. Proceeds from sale of property, plant and equipment	015
2. Net disposal of financial assets	016
3. Interest received	017	35.578	615
4. Dividend received	018
5. Other cash from investing activities	019	1.209.246	$\Omega$
III. Total cash flow from investing activities (015 do 019)	020	1.244.824	615
1. Purchase of property, plant and equipment and intangible assets	021	52.443.803	2.051.573
2. Purchase of financial instruments	022
3. Other cash flow used in investing activites	023
IV. Total cash flow from investing activities (021 do 023)	024	52.443.803	2.051.573
B1) NET INCREASE IN CASH FLOW FROM INVESTING ACTIVITIES $(020-024)$	025
B2) NET DECREASE IN CASH FLOW FROM INVESTING ACTIVITIES $(024 - 020)$	026	51.198.979	2.050.958
CASH FLOW FROM FINANCIAL ACTIVITIES
1. Proceeds from issuance of financial instruments	027
2. Proceeds from loans	028	41.927.630	1.853.836
3. Other cash flow from financial activities	029	1.716.399	O
V. Total cash flow from financial activities (027 do 029)	030	43.644.029	1.853.836
1. Repayment of interest-bearing borrowings	031
2. Dividend paid	032
3. Repayment of finance lease	033
4. Repurchase of treasury shares	034
5. Other cash flow used in financial activities	035
VI. Total cash flow used in financial activities (031 do 035)	036
C1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES
$(030 - 036)$ C2) NET DECREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES	037	43.644.029	1.853.836
$(036 - 030)$	038
Total increase in cash flow $(013 - 014 + 025 - 026 + 037 - 038)$	039
Total decrease in cash flow (014 - 013 + 026 - 025 + 038 - 037)	040	1.258.223	91.472
Cash and cash equivalents at the beginning of the period	041	3.910.692	2.652.470
Increase in cash and cash equivalents	042
Decrease in cash and cash equivalents	043	1.258.223	91.472
Cash and cash equivalents at the end of the period	044	2.652.469	2.560.998

VILLOUIS !!
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31.3.2018 $\mathbf{c}$ 1.1.2018 for the period from
Item	AOP	Previous
		period	Current period
1. Share capital	2	m	4
2. Capital reserves	SO	491.316.690	491.316.690
3. Reserves from profit	002	25.401.322	25.401.322
4. Retained earnings	003
5. Profit or loss for the period	004	11.586.151	7.355.501
6. Revaluation of property, plant and equipment	005	$-8.565.350$	$-9.737.732$
7. Revaluation of intangible assets	006
	007
8. Revaluation of financial financial assets available for sale
9. Other revaluations	008
10. Total capital and reserves (AOP 001 do 009)	009
11. Foreign exchange differences from investments in foreign operations	010	519.738.813	514.335.781
12. Current and deferred taxes	011		$\circ$
13. Cash flow hedge	012
14. Changes in accounting policies	013
15. Prior year adjustment	014
16. Other changes in equity	015
17. Total increase/decrease in	016
equity (AOP 011 do 016)	017	0	$\circ$
17 a. Parent company share in subsidiary
17 b. Minority interest	018	0	$\circ$

Items that decrease equity have negative sign
Items from 001 to 009 are state of balance sheet date

019

Notes to the Financial Statements

Other notes to the financial statements are disclosed within the Management report.

Pursuant to the provisions of the Capital Market Act, Article 407, Paragraph 2, and Article 410, Paragraph 2, the Company Management Board makes the following statement:

STATEMENT OF RESPONSIBILITIES OF THE COMPANY MANAGEMENT BOARD

According to our best knowledge, the quarterly financial report of company Jadran d.d., as of 31.03.2018. is composed in accordance with the Accounting Law, with the application of International Financial Repoting Standards.

The report provides a true account of the Company's assets and liabilities, profit and losses, financial position and operation of the Company.

In Crikvenica, 27.04.2018.

Management Board President

Pero Matić

Management Board Member

Marija Galjanić Sovar

Jadran d.d. za hotelijerstvo i turizam, Bana Jelačića 16, HR-51260 Crikvenica | www.jadran-crikvenica.hr

Uprava: $T: +385(0)51241222$ F: +385 (0)51 241 632 E: uprava@jadran-crikvenica.hr

Marketing: $T: +385(0)51241970$ F: +385 (0)51 241 975 E: marketing@jadran-crikvenica.hr

OIB: 56994999963 Privredna banka d.d. 2340009-1110722690 IBAN: HR4323400091110722690 SWIFT: PBZGHR2X

Temeljni kapital iznosi 491.316.690,00 kn uplaćen u cijelosti podijeljen na 49.131.669 redovnih dionica nominalnog iznosa 10,00 kuna svaka. Društvo je upisano u Sudski registar Trgovačkog suda u Rijeci pri Trgovačkom sudu u Rijeci pod MBS: 040000817. Predsjednik Uprave: mr. sc. Pero Matić, Članica Uprave: Marija Galjanić Sovar, dipl. oec. Predsjednik
Nadzornog odbora: Ivo Bašić, dipl. oec.