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Jadran d.d. Interim / Quarterly Report 2018

Jul 30, 2018

2094_10-q_2018-07-30_04f9c029-e8d5-4c97-83e3-1086c65b7ae2.pdf

Interim / Quarterly Report

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MANAGEMET'S REPORT ON THE COMPANY'S BUSINESS OPERATIONS

for the period January - June 2018

(unaudited)

Crikvenica, July 2018

Jadran d.d. Hotels and Tourism, Bana Jelačića 16, HR-51260 Crikvenica | www.jadran-crikvenica.hr

Management Board: Phone: +385 (0)51 241 222 Fax: +385 (0)51 241 632 Email: [email protected]

Marketing: Phone: +385 (0)51 241 970 Fax: +385 (0)51 241 975 Email: [email protected]

Personal Identification Number (OIB): 56994999963 Privredna banka d.d. 2340009-1110722690 IBAN: HR4323400091110722690 SWIFT: PBZGHR2X

Contents

1. GENERAL INFORMATION 1
2. ORGANISATIONAL AND OWNERSHIP STRUCTURE 2
3. BUSINESS RESULTS 3
4. KEY INDICATORS 4
5. EXPOSURE TO RISKS 5
6. EMPLOYEES 7
7. CORPORATE GOVERNANCE CODE 7

Jadran d.d. Hotels and Tourism, Bana Jelačića 16, HR-51260 Crikvenica | www.jadran-crikvenica.hr

Management Board: Phone: +385 (0)51 241 222 Fax: +385 (0)51 241 632 Email: [email protected]

Marketing: Phone: +385 (0)51 241 970 Fax: +385 (0)51 241 975 Email: [email protected]

Personal Identification Number (OIB): 56994999963 Privredna banka d.d. 2340009-1110722690 IBAN: HR4323400091110722690 SWIFT: PBZGHR2X

1. GENERAL INFORMATION

Name and the company

JADRAN, joint stock company for hotels and tourism, company registration number (MBS): 040000817, identification number (OIB): 56994999963. Abbreviated company name is JADRAN d.d.

Headquarters and legal form

JADRAN d.d. is a joint stock company. Its headquarters are in Crikvenica, Bana Jelačića 16, Republic of Croatia.

Securities

The share capital of the Company amounts to HRK 491,316,690.00, or 49,131,669 ordinary stocks, each in the nominal amount of HRK 10.00. Stocks are issued in non-materialised form mark JDRN-R-B, ISIN HRJDRNRB0002, and are deposited in the depository of the Central Depository and Clearing Company.

Members of the Management Board:

  • Goran Fabris, President of the Management Board
  • Karlo Čulo, Member of the Management Board

Supervisory Board:

  • Tomislav Kitonić, President of the Supervisory Board
  • Ante Jelčić, Deputy President of the Supervisory Board
  • Ivan Blažević, Member of the Supervisory Board
  • Dragan Magaš, Member of the Supervisory Board
  • Mirko Herceg, Member of the Supervisory Board

Jadran d.d. Hotels and Tourism, Bana Jelačića 16, HR-51260 Crikvenica | www.jadran-crikvenica.hr

Management Board: Phone: +385 (0)51 241 222 Fax: +385 (0)51 241 632 Email: [email protected]

Marketing: Phone: +385 (0)51 241 970 Fax: +385 (0)51 241 975 Email: [email protected]

Personal Identification Number (OIB): 56994999963 Privredna banka d.d. 2340009-1110722690 IBAN: HR4323400091110722690 SWIFT: PBZGHR2X

2. ORGANISATIONAL AND OWNERSHIP STRUCTURE

JADRAN d.d. is a joint stock company that is not a member of any group of companies and has no subsidiaries. Until April 2018, the Company was predominantly owned by the Republic of Croatia, and the Agreement on the Sale and Transfer of the Company's Stocks was concluded between the Restructuring and Sale Centre (CERP) and PBZ Croatia osiguranje d.d. and Erste d.o.o. on 6 April 2018.

The Company's List of shareholders with 5% or more of shares in the Company's share capital (as at 30 June 2018):

  • PBZ CO OMF CATEGORY B holds 22,363,352 Stocks, representing 45,52% share in the Company's share capital;
  • ERSTE PLAVI OMF CATEGORY B holds 11,963,530 Stocks, representing 24,35% share in the Company's share capital;
  • CERP, on behalf of the Republic of Croatia, holds 2,492,020 Stocks, representing 5,07% share in the Company's share capital.

Shareholders of the Company on 30 June 2018

Source: The Croatian Central Clearing Depository Company

Jadran d.d. Hotels and Tourism, Bana Jelačića 16, HR-51260 Crikvenica | www.jadran-crikvenica.hr

Management Board: Phone: +385 (0)51 241 222 Fax: +385 (0)51 241 632 Email: [email protected]

Marketing: Phone: +385 (0)51 241 970 Fax: +385 (0)51 241 975 Email: [email protected]

Personal Identification Number (OIB): 56994999963 Privredna banka d.d. 2340009-1110722690 IBAN: HR4323400091110722690 SWIFT: PBZGHR2X

3. BUSINESS RESULTS

In the observed period from January to June 2018, Jadran d.d. achieved a total of 120,685 overnight stays, which is 4% more than overnight stays realised in 2017. The hotels realised the same number of overnight stays compared to the same period in 2017, while the camps realised 16% more overnight stays compared to 2017. In the period January – June 2018, capacity utilisation was at the same level as in the same period last year, while utilisation in camps recorded 16% higher results than in 2017.

The highest capacity utilisation was achieved by hotel Zagreb, TS Kačjak, TS Ad Turres, hotel International and hotels Slaven and Kaštel.

In the first six months of 2018, 15% more total revenues were realised, and 11% more expenditures than in the same period in 2017.

In 2018, the revenue structure shows 13% higher business income (income from accommodation and catering services) compared to the previous period in 2017.

Expense structure shows 9% increase in operating expenses compared to 2017. Material expenses are 8% lower in 2018 compared to 2017, while labour costs are 24% higher in the observed period of 2018 than in 2017.

Financial revenues are 57% higher in 2018 than in the observed period in 2017, while financial expenditures for the same period were 7% lower than in the previous year.

In the period from 1 January to 30 June 2018, realised loss is 6% lower than the loss realised in the same observed period in 2017.

Jadran d.d. Hotels and Tourism, Bana Jelačića 16, HR-51260 Crikvenica | www.jadran-crikvenica.hr

Management Board: Phone: +385 (0)51 241 222 Fax: +385 (0)51 241 632 Email: [email protected]

Marketing: Phone: +385 (0)51 241 970 Fax: +385 (0)51 241 975 Email: [email protected]

Personal Identification Number (OIB): 56994999963 Privredna banka d.d. 2340009-1110722690 IBAN: HR4323400091110722690 SWIFT: PBZGHR2X

4. KEY INDICATORS

TOTAL
JADRAN
OVERNIGHT
STAYS
ARRIVALS UNITS CAPACITY
BEDS
TS 25.567 7.222 11.230 1.177
Hotels 63.756 22.182 33.449 1.408
Camp 29.609 9.822 11.437 1.500
Camping site 1.764 573 665 90
TOTAL 120.696 39.799 56.781 4.175

Jadran d.d. Hotels and Tourism, Bana Jelačića 16, HR-51260 Crikvenica | www.jadran-crikvenica.hr

Management Board: Phone: +385 (0)51 241 222 Fax: +385 (0)51 241 632 Email: [email protected]

Marketing: Phone: +385 (0)51 241 970 Fax: +385 (0)51 241 975 Email: [email protected]

Personal Identification Number (OIB): 56994999963 Privredna banka d.d. 2340009-1110722690 IBAN: HR4323400091110722690 SWIFT: PBZGHR2X

5. EXPOSURE TO RISKS

We list the most significant risks for the Company or its business operations:

Risk of competition

The risk of competition is exceptionally high in the tourist market since other similar tourist destinations invest significant resources in growth and development of their capacities as well as in marketing activities aimed at tourist arrivals. The competition, inter alia, focuses on the price, quality and content of the tourist offer in the area of Crikvenica Riviera and other domestic and foreign tourist destinations.

Currency risk

Exposure of the Company to currency risk exists within business operations related to users of the Company's services who contract prices of services in foreign currency or apply the currency clause.

The Company also has foreign currency-based costs.

The strong kuna exchange rate policy also has a partial impact on reducing the Company's competitiveness on the world market for tourist services.

Interest rate risk

The Company is exposed to interest rate risk as it concludes credit agreements with variable interest rates. The Company manages this risk by maintaining an appropriate ratio of fixed and variable interest rates in its credit portfolio.

Risk of settlement by other contracting party

Risk of settlement by other contracting party is present in all bilateral mandatory legal relations. Given that the issue of meeting the Company's financial obligations is one of the key elements for uninterrupted business operations, the Company pays considerable attention to this risk, especially due to the situation in the domestic economy.

Liquidity risk

The Company manages this risk by maintaining adequate reserves, loans from banks as well as other sources of funding by constantly monitoring the planned and realised cash flows and compares the profile of maturity of financial assets and liabilities.

Risk of changes in tax and concession regulations

Jadran d.d. Hotels and Tourism, Bana Jelačića 16, HR-51260 Crikvenica | www.jadran-crikvenica.hr The risk of changes in tax regulations implies likelihood that the legislature will change the tax regulations in a manner that would negatively affect the profitability of the Company's business. The risk of changes in tax and other regulations represents a significant risk for potential investors in the

Management Board: Phone: +385 (0)51 241 222 Fax: +385 (0)51 241 632 Email: [email protected]

Marketing: Phone: +385 (0)51 241 970 Fax: +385 (0)51 241 975 Email: [email protected]

Personal Identification Number (OIB): 56994999963 Privredna banka d.d. 2340009-1110722690 IBAN: HR4323400091110722690 SWIFT: PBZGHR2X

Company's shares. This risk is also reflected through possible changes in tax rates, but also in taxation subjects.

The Company is also exposed to risks of potential change in regulations related to concessions and concession permits, i.e. concession fees for maritime use. The right to use maritime domain is one of significant conditions for further operations of the Company.

The risk of the tourist branch of the economy and the risk of change in tourist trends

A wider political situation also has influence on tourism trends, as well as the increase in terrorism activities and the latest crisis related to refugee migrants from war-affected North African and Middle East countries, to which the Republic of Croatia has become a standard route towards the Western Europe.

Specificities of the hotel industry include a relatively short period of production and service processes, a discontinuous flow of work processes, the inability to store the tourist product, the constant preparedness of workers and means of production and the provision of services that start at the time of guest arrival (clients), i.e. according to their orders, including diversity of products and services, direct communication with guests and the need to constantly adapt to their requirements, the specificity of working conditions (long standing, long walking, high temperatures, certain nervous tension and the like), the inability to accurately plan and distribute production and service delivery in time, the rigidity of the scope and the structure of the funds that make up the dominant participation of fixed costs in the total hotel costs, the inability to fully adjust the number of employees and the level of employment capacity, the elasticity of working hours, the need to differentiate the hotel's sales prices, or constantly adjust the consumption, etc.

One of risks in the tourism industry is the seasonality where only one bad season may lead to business disturbances and liquidity problems.

Risk of lost court disputes

The Company is involved in numerous court disputes, judicial and extra-judicial proceedings regarding the establishment of ownership rights, proceedings regarding setting aside legal actions of creditors with separate satisfaction rights who did not accept the terms of the Bankruptcy Plan, civil and enforcement proceedings and proceedings conducted for the reimbursement of seized property.

Court disputes that may pose a risk for the Company are disputes to set aside legal actions of creditors who did not accept the terms of the Bankruptcy Plan. The disputes are against former employees of the Company and against Croatia osiguranje d.d. Zagreb, Rijeka Branch Office. They all have mortgages and records of foreclosures on the real property of the Company.

Jadran d.d. Hotels and Tourism, Bana Jelačića 16, HR-51260 Crikvenica | www.jadran-crikvenica.hr

Management Board: Phone: +385 (0)51 241 222 Fax: +385 (0)51 241 632 Email: [email protected]

Marketing: Phone: +385 (0)51 241 970 Fax: +385 (0)51 241 975 Email: [email protected]

Personal Identification Number (OIB): 56994999963 Privredna banka d.d. 2340009-1110722690 IBAN: HR4323400091110722690 SWIFT: PBZGHR2X

6. EMPLOYEES

The total number of employees on 30 June 2018 in JADRAN d.d. was 478 workers. Within this number, 154 workers are in permanent employment, 265 workers are employed for a limited time and 59 are students.

7. CORPORATE GOVERNANCE CODE

JADRAN d.d. applies and is governed by the principals of corporate governance practice. The Company did not adopt its own corporate governance code but it applies the provisions of the Zagreb Stock Exchange Code (the Code is available at the following link http://zse.hr/default.aspx?id=10865 ).

Shares of the Company are listed in the official market of the Zagreb Stock Exchange.

All reports and other prescribed information are publicly disclosed and made available to the public in accordance with the Capital Market Act and the Rules of the Stock Exchange.

The Company applies the recommendations of the Code, with certain deviations as stated and explained below.

Up to now, the Company did not introduce the possibility of participation and voting of shareholders at the General Assembly using modern communication technology, since there was no need to do so, i.e. no such requests have been made by the shareholders.

Remuneration to the members of the Supervisory Board is determined in a fixed amount, in accordance with the decision of the General Assembly.

The Audit Committee, the Appointment and Remuneration Committee and the Corporate Governance Committee have been appointed on 6 July 2018.

Jadran d.d. Hotels and Tourism, Bana Jelačića 16, HR-51260 Crikvenica | www.jadran-crikvenica.hr

Management Board: Phone: +385 (0)51 241 222 Fax: +385 (0)51 241 632 Email: [email protected]

Marketing: Phone: +385 (0)51 241 970 Fax: +385 (0)51 241 975 Email: [email protected]

Personal Identification Number (OIB): 56994999963 Privredna banka d.d. 2340009-1110722690 IBAN: HR4323400091110722690 SWIFT: PBZGHR2X

ENCLOSURE 1
Reporting period:
01.01.2018. to 30.06.2018.
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: [email protected]
Internet address: www.jadran-crikvenica.hr
Code and city / municipality
5
3
CRIKVENICA
Code and county
8
PRIMORSKO-GORANSKA Number of employees:
Consolidated Report
NO
(at the end of year)
Business activity code:
Entities in consolidation (according to IFRS) Registered seat: Tax number (MB):
Book-keeping office:
Contact person Natali Ivančić Majetić
Telephone: +385 (0)51 800 482 (Name and surname of contact person) Telefaks: +385 (0)51 241 349
E-mail: [email protected]
Name and surname: Karlo Čulo
(authorized representatives)
Documents to be published:
2. Management Commentary Statement with notes
3. Responsibility of the Management for the preparation of the financial statements
1. Financial Statements (Balance Sheet, Income statement, Cash Flow Statement, Statement of Changes in Equity)
(seal) (signature of authorized representative)

Management Board: Phone: +385 (0)51 241 222 Fax: +385 (0)51 241 632 Email: [email protected]

Marketing: Phone: +385 (0)51 241 970 Fax: +385 (0)51 241 975 Email: [email protected]

Personal Identification Number (OIB): 56994999963 Privredna banka d.d. 2340009-1110722690 IBAN: HR4323400091110722690 SWIFT: PBZGHR2X

Balance Sheet

as at 30 June 2018
Item AOP Previous Current
period period
1 2 3 4
A) RECEIVABLES FOR REGISTARED UNPAID CAPITAL 001
B) NON CURRENT ASSETS (003+010+020+029+033) 002 627.634.236 627.522.540
I. INTANGIBLE ASSETS (004 do 009) 003 284.252 203.251
1. Research & Development expenditure 004
2. Patents, licences, royalties, trade marks, software&similar rights 005 274.867 203.251
3. Goodwill 006
4. Prepayments for intangible assets 007
5. Intangible assets under construction 008 9.385 0
6. Other intangible assets 009
II. PROPERTY, PLANT AND EQUIPMENT (011 do 019) 010 623.803.273 625.137.780
1. Land 011 298.461.517 298.373.064
2. Property 012 263.799.030 296.811.446
3. Plants and equipment 013 16.145.604 29.602.953
4. Tools, plants&vehicles 014
5. Biological asset 015
6. Prepayments for tangible assets 016
7. Assets under construction 017 45.397.122 350.317
8. Other tangible assets 018
9. Investments property 019
III. FINANCIAL ASSETS (021 do 028) 020 3.212.240 1.847.038
1. Investments in subsidiaries 021
2. Loans to subsidiaries 022
3. Participating interests (stakes) 023
4. Loans to participating interest 024
5. Investments in securities 025
6. Loans & deposits 026
7. Other non-current financial assets 027 3.212.240 1.847.038
8. Investment accounted by equity method 028
IV. RECEIVABLES (030 do 032) 029 0 0
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 16.417.529 19.596.882
I. INVENTORIES (036 do 042) 035 1.030.455 1.159.461
1. Raw materials & consumables 036 1.009.014 1.114.369
2. Work in progress 037
3. Products 038
4. Merchandise 039 21.441 45.092
5. Prepayments for inventories 040
6. Other available-for-sale assets 041
7. Biological asset 042
II. RECEIVABLES (044 do 049) 043 9.483.403 8.836.683
1. Receivables for trade debt of subsidiaries 044
2. Trade receivables 045 5.476.754 4.617.011
3. Receivables for trade debts of participating entities 046
4. Amounts receivable from employees 047 140.130 101.673
5. Receivables from government agencies 048 6.932 1.185.075
6. Other receivables 049 3.859.587 2.932.924
III. FINANCIAL ASSETS (051 do 057) 050 222.199 66.100
1. Investments in subsidiaries 051
2. Loans to subsidiaries 052
3. Participating interests (stakes) 053
4. Loans to participating interest 054
5. Investments in securities 055

Jadran d.d. Hotels and Tourism, Bana Jelačića 16, HR-51260 Crikvenica | www.jadran-crikvenica.hr

Management Board: Phone: +385 (0)51 241 222 Fax: +385 (0)51 241 632 Email: [email protected]

Marketing: Phone: +385 (0)51 241 970 Fax: +385 (0)51 241 975 Email: [email protected]

Personal Identification Number (OIB): 56994999963 Privredna banka d.d. 2340009-1110722690 IBAN: HR4323400091110722690 SWIFT: PBZGHR2X

6. Loans & deposits 056 222.199 66.100
7. Other financial assets 057
IV. CASH AND CASH EQUIVALENTS 058 5.681.472 9.534.638
D) PREPAYMENTS AND ACCRUED INCOME 059 1.183.981 1.941.374
E) TOTAL ASSETS (001+002+034+059) 060 645.235.746 649.060.796
F) OFF-BALANCE SHEET ITEMS 061
EQUITY AND LIABILITES
A) EQUITY (063+064+065+071+072+075+078) 062 517.937.418 510.729.605
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 0
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 3.718.510
1. Retained earnings 073 11.586.151 3.718.510
2. Loss brought forward 074
VI. PROFIT OR LOSS FOR THE FINANCIAL YEAR (076-077) 075 10.366.745 9.706.917
1. Profit for the financial year 076
2. Loss for the financial year 077 10.366.745 9.706.917
VII. MINORITY INTEREST 078
B) PROVISIONS (080 do 082) 079 839.413 885.032
1. Provisions for redundancy costs 080 392.923 438.542
2. Provisions for tax obligations 081
3. Other provisions 082 446.490 446.490
C) NON-CURRENT LIABILITIES (084 do 092) 083 82.233.066 93.252.562
1. Amounts payable to subsidiaries 084
2. Liabilities for loans, deposits and other 085
3. Liabilities towards banks and other financial institutions 086 72.271.702 83.649.933
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 9.961.364 9.602.629
9. Deffered tax 092
D) CURRENT LIABILITIES (094 do 105) 093 41.583.385 43.166.457
1. Amounts payable to subsidiaries 094
2. Liabilities for loans, deposits and other 095 455.282 500.946
3. Liabilities towards banks and other financial institutions 096 1.395.555 5.630.604
4. Amounts payable for prepayment 097 15.713.373 17.421.850
5. Trade payables 098 19.819.607 14.191.311
6. Amounts payable for securities 099
7. Liabilities toward participating interests 100
8. Amounts payable to employees 101 2.137.201 2.170.050
9. Liabilities for taxes and contributions 102 2.022.795 2.483.824
10. Dividend payables 103
11. Liabilities directly associated with the assets classified as held for sale 104
12. Other current liabilities 105 39.572 767.872
E) ACCRUED CHARGES AND DEFERRED REVENUE 106 2.642.464 1.027.140
F) TOTAL EQUITY AND LIABILITIES (062+079+083+093+106) 107 645.235.746 649.060.796
G) OFF-BALANCE SHEET ITEMS 108
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 109
2. Attributable to minority interest 110
Note 1.: APPENDIX TO THE BALANCE SHEET (to be filled in by entites w
ho submitting consolidated financial statements).

Jadran d.d. Hotels and Tourism, Bana Jelačića 16, HR-51260 Crikvenica | www.jadran-crikvenica.hr

Management Board: Phone: +385 (0)51 241 222 Fax: +385 (0)51 241 632 Email: [email protected]

Marketing: Phone: +385 (0)51 241 970 Fax: +385 (0)51 241 975 Email: [email protected]

Personal Identification Number (OIB): 56994999963 Privredna banka d.d. 2340009-1110722690 IBAN: HR4323400091110722690 SWIFT: PBZGHR2X

Item AOP Previous period Current period
Cumulativ
е
Quarter Cumulative Quarter
1 2 з 4 5 6
I. OPERATING INCOME (112+113) 111 23.331.656 20.415.680 26.346.588 23.280.729
1. Sales revenue 112 21.232.072 19.152.945 24.753.869 22.492.708
2. Other operating income
II. OPERATING EXPENSES
113 2.099.584 1.262.735 1.592.719 788.021
(115+116+120+124+125+126+129+130) 114 33.136.287 22.075.309 36.141.141 23.990.680
1. Changes in inventories of finished products and work in
progress
115
2. Raw material and consumables used (117 do 119) 116 14.995.305 10.593.652 13.860.261 10.222.800
a) Cost of raw materials & consumables 117 7.327.721 5.735.688 7.368.012 5.842.582
b) Cost of goods sold 118 26.960 23.878 33.747 32.376
c) Other costs 119 7.640.624 4.834.086 6.458.502 4.347.842
3. Staff costs (121 do 123) 120 11.197.879 7.638.700 13.901.250 9.214.212
a) Net salaries 121 7.255.594 4.986.187 8.754.434 5.868.102
b) Employee income tax and contributions
c) Employer's contributions
122
123
2.401.362
1.540.923
1.596.647
1.055.866
3.258.376
1.888.440
2.081.669
1.264.441
4. Depreciation and amortisation expense 124 4.344.991 2.173.908 5.315.105 2.659.204
5. Other costs 125 2.544.417 1.651.188 2.842.943 1.672.882
6. Impairment losses (127+128) 126 0 0 0 0
a) non-current assets (except financial assets) 127
b) current asssets (except financial assets) 128
7. Provisions 129 0 o n 0
8. Other operating expenses 130 53.695 17.861 221.582 221.582
III. FINANCIAL INCOME (132 do 136) 131 957.400 936.572 1.504.271 1.498.466
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
133 957.400 936.572 1.504.271 1.498.466
3. Income from associates and ownership interests 134
4. Unrealized gains 135
5. Other financial income 136
IV. FINANCIAL EXPENSES (138 do 141) 137 1.519.514 1.078.337 1.416.635 757.700
1. Interest, foreign exchange losses and other expenses 138
with related parties
2. Interest, foreign exchange differences and other
expenses with non-related and other entities
3. Unrealized losses
139
140
1.519.514 1.078.337 1.416.635 757.700
4. Other financial expenses 141
SHARE OF INCOME OF ASSOCIATES
v.
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 24.289.056 21.352.252 27.850.859 24.779.195
X. TOTAL EXPENSES (114+137+143 + 145) 147 34.655.801 23.153.646 37.557.776 24.748.380
XI. PROFIT OR LOSS BEFORE TAX (146-147) 148 10.366.745 1.801.394 9.706.917 30.815
1. Profit before tax (146-147) 149 30.815
2. Loss before tax (147-146)
XII. INCOME TAX EXPENSE
150
151
10.366.745 1.801.394 9.706.917
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151) 152 10.366.745 1.801.394 9.706.917 30.815
1. Profit for the period (149-151) 153 30.815
2. Loss for the period (151-148) 154 10.366.745 1.801.394 9.706.917
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
2. Attributable to non-controlling interests
155
156
STATEMENTS OF COMPREHEN SIVE INCOME (to be filled by entities who work in compliance with IFRS)
I. PROFIT OR LOSS FOR THE PERIOD (= 152) 157 $-10.366.745$ $-1.801.394$ $-9.706.917$ 30.815
II. OTHER COMPREHEN SIVE INCOME /LOSS BEFORE TAX 158
(159 do 165) 159
1. Exchange differences arising from foreign operations
2. Revaluation of non-current assets and intangible assets
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 166
PERIOD
IV. NET OTHER COMPREHENSIVE INCOME OR LOSS FOR
THE YEAR (158-166) 167
V. TOTAL COMPREHEN SIVE INCOME/LOSS FOR THE
PERIOD (157+167)
168 $-10.366.745$ $-1.801.394$ $-9.706.917$ 30.815
APPENDIX Statement of Comprehensive Income (to be filled in by entities submitting consolidated financial statements)
VI. TOTAL COMPREHEN SIVE INCOME/LOSS FOR THE PERIOD
1. Attributable to owners of the company 169
2. Attributable to non-controlling interests 170

Jadran d.d. Hotels and Tourism, Bana Jelačića 16, HR-51260 Crikvenica | www.jadran-crikvenica.hr

Management Board: Phone: +385 (0)51 241 222 Fax: +385 (0)51 241 632 Email: [email protected]

Marketing: Phone: +385 (0)51 241 970 Fax: +385 (0)51 241 975 Email: [email protected]

Personal Identification Number (OIB): 56994999963 Privredna banka d.d. 2340009-1110722690 IBAN: HR4323400091110722690 SWIFT: PBZGHR2X

CASH FLOW STATEMENT - Indirect method
in the period 01 January 2018 to 30 June 2018
Issuer: JADRAN D.D., CRIKVENICA
Item AOP Previous
period
Current
period
1 2 3 4
CASH FLOW FROM OPERATING ACTIVITIES
1. Profit before tax 001 -10.366.745 -9.706.917
2. Depreciation and amortisation 002 4.344.991 5.315.105
3. Increase in liabilities 003 29.267.110 19.156.057
4. Decrease in receivables 004
5. Decrease in inventories 005
6. Other increase in cash flow 006 110.181
I. Total increase in operating cash flow (001 do 006) 007 23.245.356 14.874.426
1. Decrease in liabilities 008 2.433.835
2. Increase in receivables 009 6.740.578 5.548.322
3. Increase in inventories 010 673.135 697.794
4. Other decrease in cash flow 011 286.912 675.279
II. Total decrease in operating cash flow (008 do 011) 012 10.134.460 6.921.395
A1) NET INCREASE IN OPERATING CASH FLOW 013 13.110.896 7.953.031
(007-012)
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 56.841 622
4. Dividend received 018
5. Other cash from investing activities 019 987.047 66.100
III. Total cash flow from investing activities (015 do 019) 020 1.043.888 66.722
1. Purchase of property, plant and equipment and intangible assets 021 40.729.056 2.472.477
2. Purchase of financial instruments 022
3. Other cash flow used in investing activites 023 32.280
IV. Total cash flow from investing activities (021 do 023) 024 40.761.336 2.472.477
B1) NET INCREASE IN CASH FLOW FROM INVESTING ACTIVITIES
(020-024)
025
B2) NET DECREASE IN CASH FLOW FROM INVESTING ACTIVITIES
(024-020)
026 39.717.448 2.405.755
CASH FLOW FROM FINANCIAL ACTIVITIES
1. Proceeds from issuance of financial instruments 027
2. Proceeds from loans 028 29.263.677 2.648.708
3. Other cash flow from financial activities 029 0
V. Total cash flow from financial activities (027 do 029) 030 29.263.677 2.648.708
1. Repayment of interest-bearing borrowings 031 1.313.816
2. Dividend paid 032
3. Repayment of finance lease 033
4. Repurchase of treasury shares 034
5. Other cash flow used in financial activities 035 886.345
VI. Total cash flow used in financial activities (031 do 035) 036 886.345 1.313.816
C1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES
(030-036)
037 28.377.332 1.334.892
C2) NET DECREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES 038
(036-030)
Total increase in cash flow (013 – 014 + 025 – 026 + 037 – 038)
039
1.770.780 6.882.168
Total decrease in cash flow (014 – 013 + 026 – 025 + 038 – 037)
Cash and cash equivalents at the beginning of the period
040
041
Increase in cash and cash equivalents 042 3.910.692
1.770.780
2.652.470
6.882.168
Decrease in cash and cash equivalents 043
Cash and cash equivalents at the end of the period 044 5.681.472 9.534.638

Jadran d.d. Hotels and Tourism, Bana Jelačića 16, HR-51260 Crikvenica | www.jadran-crikvenica.hr

Management Board: Phone: +385 (0)51 241 222 Fax: +385 (0)51 241 632 Email: [email protected]

Marketing: Phone: +385 (0)51 241 970 Fax: +385 (0)51 241 975 Email: [email protected]

Personal Identification Number (OIB): 56994999963 Privredna banka d.d. 2340009-1110722690 IBAN: HR4323400091110722690 SWIFT: PBZGHR2X

STATEMENT OF CHANGES IN EQUITY

for the period from
30.6.2018
1.1.2018
to
Item AOP Previous
period
Current
period
1 2 3 4
1. Share capital 001 491.316.690 491.316.690
2. Capital reserves 002 25.401.322 25.401.322
3. Reserves from profit 003
4. Retained earnings 004 11.586.151 3.718.510
5. Profit or loss for the period 005 -10.366.745 -9.706.917
6. Revaluation of property, plant and equipment 006
7. Revaluation of intangible assets 007
8. Revaluation of financial financial assets available for sale 008
9. Other revaluations 009
10. Total capital and reserves (AOP 001 do 009) 010 517.937.418 510.729.605
11. Foreign exchange differences from investments in foreign operations 011 0
12. Current and deferred taxes 012
13. Cash flow hedge 013
14. Changes in accounting policies 014
15. Prior year adjustment 015 0 -3.636.990
16. Other changes in equity 016
17. Total increase/decrease in equity (AOP 011 do 016) 017 0 -3.636.990
17 a. Parent company share in subsidiary 018
17 b. Minority interest 019

Items that decrease equity have negative sign

Items from 001 to 009 are state of balance sheet date

Jadran d.d. Hotels and Tourism, Bana Jelačića 16, HR-51260 Crikvenica | www.jadran-crikvenica.hr

Management Board: Phone: +385 (0)51 241 222 Fax: +385 (0)51 241 632 Email: [email protected]

Marketing: Phone: +385 (0)51 241 970 Fax: +385 (0)51 241 975 Email: [email protected]

Personal Identification Number (OIB): 56994999963 Privredna banka d.d. 2340009-1110722690 IBAN: HR4323400091110722690 SWIFT: PBZGHR2X

Notes to financial statements

Business data for the period from 1 January to 30 June 2018 are specified in the interim report which is an integral part of the report for the second quarter of 2018, i.e. the half-year of 2018.

Jadran d.d. Hotels and Tourism, Bana Jelačića 16, HR-51260 Crikvenica | www.jadran-crikvenica.hr

Management Board: Phone: +385 (0)51 241 222 Fax: +385 (0)51 241 632 Email: [email protected]

Marketing: Phone: +385 (0)51 241 970 Fax: +385 (0)51 241 975 Email: [email protected]

Personal Identification Number (OIB): 56994999963 Privredna banka d.d. 2340009-1110722690 IBAN: HR4323400091110722690 SWIFT: PBZGHR2X

Pursuant to Articles 407 and 410 of the Capital Market Act (Official Gazette 88/08, 146/08), the Management Board of the company JADRAN d.d., according to our best knowledge, gives the following

STATEMENT BY PERSONS RESPONSIBLE FOR THE PREPARATION OF THE REPORT

Unaudited financial reports of JADRAN d.d. are prepared in accordance with International Financial Reporting Standards and the Accounting Act valid at the date of the financial reports.

Unaudited financial reports of JADRAN d.d. for the period from 1 January 2018 to 30 June 2018 provide a true and fair view of the assets and liabilities, losses and gains, financial position and operations of the Company.

Report on business operations contains a true and faithful presentation of the Company's business development and results, along with a description of the most significant risks and uncertainties to which the Company is exposed.

In Crikvenica, 25 July 2018

President of the Management Board

Member of the Management Board

Jadran d.d. Hotels and Tourism, Bana Jelačića 16, HR-51260 Crikvenica | www.jadran-crikvenica.hr

Management Board: Phone: +385 (0)51 241 222 Fax: +385 (0)51 241 632 Email: [email protected]

Marketing: Phone: +385 (0)51 241 970 Fax: +385 (0)51 241 975 Email: [email protected]

Personal Identification Number (OIB): 56994999963 Privredna banka d.d. 2340009-1110722690 IBAN: HR4323400091110722690 SWIFT: PBZGHR2X