MANAGEMENT REPORT

For the period January- December 2018

(unrevised)

Crikvenica, February 2019.

1. GENERAL INFORMATION 1
2. ORGANISATIONAL AND OWNERSHIP STRUCTURE 2
3. BUSINESS PERFORMANCE RESULTS 3
4. KEY PERFORMANCE INDICATORS 5
5. RISK EXPOSURE 6
6. EMPLOYEES 8
7. CORPORATE MANAGEMENT CODE 8
8. APPENDICES 9

1. GENERAL INFORMATION

Company and business name

JADRAN, dioničko društvo za hotelijerstvo i turizam, court registration number (MBS): 040000817, Croatian tax number (OIB): 56994999963. The company's business name is JADRAN d.d.

Registered seat and legal structure

JADRAN d.d. is a joint-stock company. Its registered seat is in Crikvenica, Bana Jelačića 16, in the Republic of Croatia.

Securities

The Company's share capital on 31st December, 2018 is HRK 482.507.730,00 and it is divided in 27.971.463 ordinary shares without the nominal value. The shares have been issued as non-material securities, with code JDRN-R-B and ISIN code HRJDRNB0002 and are managed by the Central Depository and Clearing Company, Inc.

Board members:

Goran Fabris, chairman of the Board of Directors
Karlo Čulo, Board member

Supervisory Board:

Tomislav Kitonić, chairman of the Supervisory Board
Ante Jelčić, vice-chairman of the Supervisory Board
Ivan Blažević, Supervisory Board member
Dragan Magaš, Supervisory Board member
Mirko Herceg, Supervisory Board member

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

Uprava: T: +385 (0)51 241 222 F: +385 (0)51 241 632 E: [email protected] Marketing: T: +385 (0)51 241 970 F: +385 (0)51 241 975 E: [email protected]

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 and it is not a member of any group of companies and has no daughter-companies. The Company is the 100% shareholder of company CLUB ADRIATIC d.o.o, Zagreb, Savska cesta 41/V. The Company's share capital is HRK 482.507.730,00 and it is divided in 27.971.463 ordinary shares without the nominal value.

The list of the Company's shareholders holding 5% or more of the Company's shares (as on 31st December, 2018):

PBZ CO OMF KATEGORIJA B has 15,995,780 shares, representing an equity stake of 57,19% in the Company;
ERSTE PLAVI OMF KATEGORIJE B has 8,547,346 shares, representing an equity stake of 30,56% in the Company.

The Company's shareholders on 31st December, 2018

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

Uprava: T: +385 (0)51 241 222 F: +385 (0)51 241 632 E: [email protected] Marketing: T: +385 (0)51 241 970 F: +385 (0)51 241 975 E: [email protected] OIB: 56994999963 Privredna banka d.d. 2340009-1110722690 IBAN: HR4323400091110722690 SWIFT: PBZGHR2X

3. BUSINESS PERFORMANCE RESULTS

JADRAN d.d. in the period from January until December, 2018 recorded a total of 416,553 overnights, showing a 3,25% year-over-year growth rate. The hotels recorded a decreased number of overnights compared to the same period in 2017, while the camps recorded a 15% year-over-year growth. Capacity utilization in the period from January to December, 2018 is the same as in the same period in 2017, while capacity utilization in camps increased by 13%.

The highest capacity utilization was recorded by the Katarina, Omorika, Kaštel i Esplanade hotels. A higher capacity utilization compared to 2017 was recorded by the both camps (Autocamp Selce and Camp Kačjak).

In the period from January until December from 2012 until 2018 the growth rate for tourist arrivals was 4.85% and overnights increased by 3.52%. In that time period tourist stays on average lasted for 4 days.

Chart 1- Tourist traffic in Jadran d.d. in the period January-December, years 2012 to 2018.

The majority of guests in the period January-December, 2018 were the Slovenians, with a 19% share in the total number of overnights. They were followed by the Germans with 14%, the Croats with 13% overnights and the Czechs with 9% overnights.

In the period January- December, 2018 the total sales increased by 9.3% and the total expenses by 3.8% year-over-year.

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

Uprava:	Marketing:	OIB: 56994999963
T: +385 (0)51 241 222	T: +385 (0)51 241 970	Privredna banka d.d. 2340009-1110722690
F: +385 (0)51 241 632	F: +385 (0)51 241 975	IBAN: HR4323400091110722690
E: [email protected]	E: [email protected]	SWIFT: PBZGHR2X

The 2018 income structure shows an 8.8% year-over-year increase in operating income (accommodation and catering services).

The expense structure shows a 4.7% year-over-year increase in operating expenses. Material costs in 2018 are 4.1% lower compared to 2017, while labour costs are 14.3% higher in the relevant time period of 2018 compared to the same time period in 2017.

Financial income is 36.3% higher in 2018 compared to the same period in 2017, while financial expenses are 15.2% lower than in the same period last year.

In the period January-December, 2018 the Company made a profit of HRK 287,636 and in the same period in 2017 Company made a loss of HRK 4,230,650.

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

4. KEY PERFORMANCE INDICATORS

KAČJAK	OVERNIGHT STAYS	ARRIVALS	UNITS	CAPACITY BEDS	AD TURRES	OVERNIGHT STAYS

Camping site	7.667	2.010	9.165	90
TOTAL	45.194	8.338	24.901	525	ESPLANADE	OVERNIGHT

OMORIKA	OVERNIG HT STAYS	ARRIVALS	UNITS	CAPACITY BEDS
Hotel	36.666	12.407	18.477	248	INTERNATIONAL OVERNIGHT	STAYS

	ZAGREB OVERNIGHT STAYS	ARRIVALS	UNITS	CAPACITY BEDS
Hotel	7.071	1.476	3.863	64	SLAVEN

KAŠTEL	OVERNIGHT STAYS	ARRIVALS	UNITS	CAPACITY BEDS
Hotel	22.651	6.851	11.491	178	KAMP SELCE	OVERNIGHT

KATARINA	OVERNIGHT STAYS	ARRIVALS	UNITS	CAPACITY BEDS
Hotel	60.284	16.588	30.499	352

KAČJAK	OVERNIGHT STAYS	ARRIVALS	UNITS	CAPACITY BEDS	AD TURRES	OVERNIGHT STAYS	ARRIVALS	UNITS	CAPACITY BEDS
TS	37.527	6.328	15.736	435	TS	61.120	14.353	27.211	762
Camping site	7.667	2.010	9.165	90
TOTAL	45.194	8.338	24.901	525	ESPLANADE	OVERNIGHT STAYS	ARRIVALS	UNITS	CAPACITY BEDS
					Hotel	9.974	2.375	5.229	76
OMORIKA	OVERNIG HT STAYS	ARRIVALS	UNITS	CAPACITY BEDS
Hotel	36.666	12.407	18.477	248	INTERNATIONAL OVERNIGHT	STAYS	ARRIVALS	UNITS	CAPACITY BEDS
					Hotel	11.264	2.755	6.080	83
	ZAGREB OVERNIGHT STAYS	ARRIVALS	UNITS	CAPACITY BEDS
Hotel	7.071	1.476	3.863	64	SLAVEN	OVERNIGHT STAYS	ARRIVALS	UNITS	CAPACITY BEDS
					Hotel	44.668	8.664	20.426	407
KAŠTEL	OVERNIGHT STAYS	ARRIVALS	UNITS	CAPACITY BEDS
Hotel	22.651	6.851	11.491	178	KAMP SELCE	OVERNIGHT STAYS	ARRIVALS	UNITS	CAPACITY BEDS
					Camp	117.661	30.116	89.667	1.500

TOTAL JADRAN	OVERNIGHT STAYS	ARRIVALS	UNITS	CAPACITY BEDS
TS	98.647	20.681	42.947	1.197
Hotels	192.578	51.116	96.065	1.408
Camp	117.661	30.116	89.667	1.500
Camping site	7.667	2.010	9.165	90
TOTAL	416.553	103.923	237.844	4.195

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

Uprava:
T: +385 (0)51 241 222
F: +385 (0)51 241 632
E: [email protected]

Marketing: T: +385 (0)51 241 970 F: +385 (0)51 241 975 E: [email protected] OIB: 56994999963 Privredna banka d.d. 2340009-1110722690 IBAN: HR4323400091110722690 SWIFT: PBZGHR2X

5. RISK EXPOSURE

Below are the most significant risks the Company or its activities are exposed to:

Competitive risk

Competitive risk in the hospitality industry is extremely high, as the other destinations are also investing significantly in capacity growth and development and in tourism marketing. Competitive pressures are based on, among other things, price, quality and amenities offered on the Crikvenica Riviera and other national and international tourist destinations.

Currency risk

The Company is exposed to currency risk due to financial transactions with its costumers denominated in currencies that are not its base currency, i.e. due to currency clauses used in agreements.

The Company has expenses based on currency.

The monetary policy based on maintaining the stability of the Croatian kuna is partly affecting the competitiveness of the Company in the global tourism industry.

Interest rate risk

The Company is exposed to the interest rate risk that arises from its loan agreements and fluctuating interest rates. The Company manages the risk by maintaining its loan portfolio in a way that ensures the appropriate ratio between fixed and floating interest rate loans.

Default risk

Default risk is part of every bilateral agreement. The other contracting parties' ability to meet their financial obligations toward the Company is one of the key elements for maintaining financial stability. The Company pays a great deal of attention to the risk, especially due to the domestic economic situation.

Liquidity risk

The Company manages the risk by keeping adequate reserves, through loans issued by foreign banks and via other sources of finance and by continually planning and monitoring cash flows and comparing maturity profiles of financial assets and liabilities.

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

Regulatory and compliance risk (especially relating to changes in taxation and concession regulations)

Regulatory risk is also probability that the legislator will change tax regulations in a way that will have a negative impact on profitability. The regulatory risk poses a significant risk for potential investors in the Company's shares. It is reflected in potential changes in tax rates and taxable assets.

The Company is exposed to risks of potential changes to concession regulations and concession permits, i.e. maritime domain use rights are among the especially important conditions for the Company to be able to continue its operations.

Tourism risk and tourism trend changes

Tourism is strongly affected by wider political situation, increase in the acts of terrorism and the most recent migrant crisis and a rising number of people arriving from the war-torn North Africa and Middle East, with Croatia becoming a standard route on their way to Western Europe.

The specificities of hospitality services are relatively short duration of production and service processes, discontinuous flow of work processes, inability of tourism product storage, constant readiness of workers and infrastructure and provision of services that begins from the guest's arrival, i.e. from the moment of ordering, product and service diversity, direct communication with guests and adjusting to guest preferences, specific working conditions (long standing, long walking, high temperatures, dealing with nervous guests, etc.), inability to make precise plans and distribute production and supply of services over time, rigidity of the scope and structure of factors that dictate a dominant share of fixes costs in the total hotel costs, inability to ensure permanent and complete adjustment of the number of staff and capacity utilization, working time flexibility, need to differentiate prices of hotel services, i.e. continues adjustment of consumption.

On of the tourism risks is seasonality and only one bad season can lead to business interruptions and liquidity problems.

Litigation risk- Risk of losing in court

The Company is involved in many litigation and non-litigation disputes relating to ownership, disputing actions of secured creditors who have not accepted terms and conditions of the bankruptcy plan, civil and enforcement proceedings and those for the return of property, i.e. compensation for the expropriated property.

Legal actions that may expose the Company to the risk are those disputing the actions of secured creditors who have not accepted terms and conditions of the bankruptcy plan. These are disputed with former employees of the Company and Croatia osiguranje d.d. Zagreb, Rijeka Branch. They all have mortgages and enforcement notices on the Company's real estate.

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

Temeljni kapital iznosi 482.507.730,00 kn uplaćen u cijelosti podijeljen na 27.971.463 redovnih dionica bez nominalnog iznosa. Društvo je upisano u Sudski registar Trgovačkog suda u Rijeci pri Trgovačkom sudu u Rijeci pod MBS: 040000817. Predsjednik Uprave: Goran Fabris, Član Uprave: Karlo Čulo, Predsjednik Nadzornog odbora: Tomislav Kitonić

6. EMPLOYEES

The total number of JADRAN d.d. employees on 31st December, 2018 was 239. The total number of permanent employees is 148 and 91 are parties to fixed-term employment contracts.

7. CORPORATE MANAGEMENT CODE

JADRAN d.d. applies and fosters the principals of corporate management. The Company does not have its own corporate management code, but applies the provisions of the Zagreb Stock Exchange Code ( http://zse.hr/default.aspx?id=10865 ).

The Company's shares are listed on the Zagreb Stock Exchange.

All reports and required information are published and available according to the Capital Market Act and Rules of the Zagreb Stock Exchange.

The Company applies recommendations as provided in the Code, with certain exceptions, as specified and explained later in this document.

The Company has not yet introduced the possibility to attend and vote in the General Shareholders Meeting using modern communications technology, as there was no need or requests from shareholders.

The fee of the Supervisory Board members are entitled to receive has been determined in a fixed amount by decision adopted in the General Shareholders Meeting.

On 6th July, 2018 the Audit Committee, Remuneration and Appointment Committee and Corporate Management Committee have been appointed.

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

8. APPENDICES

Appendix 1
Reporting period		1.1.2018		to	31.12.2018

				GFI-POD Annual Business Financial Statement
Statistical Number (MB):	03145662

Registration Number (MBS):	040000817
Personal Identification	56994999963
Number (PIN):
	Issuer's corporate name: JADRAN D.D., CRIKVENICA
Postal code and town/city:	51260		CRIKVENICA

Street and street number:	Bana Jelačića 16
	e-mail: [email protected]

	Web: www.jadran-crikvenica.hr
Municipality/City code:	Crikvenica 53

County code and name:	8		PRIMORSKO - GORANSKA ŽUPANIJA		Number of employees:	304
Consolidated statement	NO				(as at the end of the reporting period) NCA code	5510

Consolidated entity's companies (according to IFRS):			Registered office:		MB:









Accounting firm:

	Contact: Ivančić Majetić Natali
	(please insert only the contact's full name) Phone: +385 (0)51 800 482				+385 (0)51 241 349
				Fax:
	e-mail: [email protected]
	Full name: Fabris Goran
	(authorized representative)

Documents disclosed:
	and notes to financial statements);				1. Financial statements (Balance Sheet, Income Statement, Cash Flow Statement, Statement of Changes in Equity
2. Management Interim Report;
	3. Declaration of the persons responsible for preparing the issuer's statements;
	4. Decision of the competent authority (proposal) on the establishment of Annual Financial Statements; and 5. Decision on the Proposal for distribution of profit or loss coverage.



		L.S.			(authorized representative's signature)

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

Uprava: T: +385 (0)51 241 222 F: +385 (0)51 241 632 E: [email protected] Marketing: T: +385 (0)51 241 970 F: +385 (0)51 241 975 E: [email protected] OIB: 56994999963

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

Balance Sheet as at 31 December 2018

Issuer: JADRAN D.D., CRIKVENICA
Item	AOP	Previous period	Current period
1	2	3	4

A) RECEIVABLES FOR REGISTARED UNPAID CAPITAL	001
B) NON CURRENT ASSETS (003+010+020+029+033)	002	634.132.150	695.857.790
I. INTANGIBLE ASSETS (004 do 009)	003	196.720	182.982
1. Research & Development expenditure	004
2. Patents, licences, royalties, trade marks, software&similar rights	005	196.720	182.982
3. Goodwill	006
4. Prepayments for intangible assets	007
5. Intangible assets under construction	008	0	0
6. Other intangible assets	009
II. PROPERTY, PLANT AND EQUIPMENT (011 do 019)	010	630.388.719	625.131.906
1. Land	011	298.373.064	298.373.064
2. Property	012	301.254.714	293.486.253
3. Plants and equipment	013	29.023.878	27.978.442
4. Tools, plants&vehicles	014	258.176	192.281
5. Biological asset	015
6. Prepayments for tangible assets	016
7. Assets under construction	017	1.478.887	5.101.866
8. Other tangible assets	018
9. Investments property	019
III. FINANCIAL ASSETS (021 do 028)	020	3.212.240	70.208.431
1. Investments in subsidiaries	021		70.208.431
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	0
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	6.402.498	129.369.937
I. INVENTORIES (036 do 042)	035	461.667	452.470
1. Raw materials & consumables	036	448.206	429.856

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

2. Work in progress	037
3. Products	038
4. Merchandise	039	13.461	22.614
5. Prepayments for inventories	040
6. Other available-for-sale assets	041
7. Biological asset	042
II. RECEIVABLES (044 do 049)	043	3.288.361	3.415.303
1. Receivables for trade debt of subsidiaries	044
2. Trade receivables	045	840.228	1.849.452
3. Receivables for trade debts of participating entities	046
4. Amounts receivable from employees	047	36.495	36.444
5. Receivables from government agencies	048	1.172.009	319.462
6. Other receivables	049	1.239.629	1.209.945
III. FINANCIAL ASSETS (051 do 057)	050	0	0
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
6. Loans & deposits	056	0	0
7. Other financial assets	057
IV. CASH AND CASH EQUIVALENTS	058	2.652.470	125.502.164

D) PREPAYMENTS AND ACCRUED INCOME	059	1.831.193	1.315.868
E) TOTAL ASSETS (001+002+034+059)	060	642.365.841	826.543.595
F) OFF-BALANCE SHEET ITEMS	061
EQUITY AND LIABILITES
A) EQUITY (063+064+065+071+072+075+078)	062	524.073.513	720.724.798
I. SHARE CAPITAL	063	491.316.690	482.507.730
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		208.809.600
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	4.230.650	287.636
1. Profit for the financial year	076		287.636
2. Loss for the financial year	077	4.230.650
VII. MINORITY INTEREST B) PROVISIONS (080 do 082)	078 079	885.032	928.904

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

1. Provisions for redundancy costs	080	438.542	482.414
2. Provisions for tax obligations	081
3. Other provisions	082	446.490	446.490
C) NON-CURRENT LIABILITIES (084 do 092)	083	93.486.996	75.147.116
1. Amounts payable to subsidiaries	084
2. Liabilities for loans, deposits and other	085
3. Liabilities towards banks and other financial institutions	086	84.935.655	74.875.662
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	8.551.341	271.454
9. Deffered tax	092
D) CURRENT LIABILITIES (094 do 105)	093	22.065.505	27.244.158
1. Amounts payable to subsidiaries	094
2. Liabilities for loans, deposits and other	095	500.946	548.861
3. Liabilities towards banks and other financial institutions	096	4.453.581	8.260.982
4. Amounts payable for prepayment	097	3.675.372	3.080.903
5. Trade payables	098	9.767.460	9.690.179
6. Amounts payable for securities	099
7. Liabilities toward participating interests	100
8. Amounts payable to employees	101	1.297.399	1.692.534
9. Liabilities for taxes and contributions	102	1.057.945	1.432.237
10. Dividend payables	103
11. Liabilities directly associated with the assets classified as held for sale	104
12. Other current liabilities	105	1.312.802	2.538.462
E) ACCRUED CHARGES AND DEFERRED REVENUE	106	1.854.795	2.498.619
F) TOTAL EQUITY AND LIABILITIES (062+079+083+093+106)	107	642.365.841	826.543.595
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 who submitting consolidated financial statements).

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

INCOME STATEMENT

for the period 01 January 2018 to 31 December 2018

Issuer: JADRAN D.D., CRIKVENICA

Item	AOP	Previous period		Current period
		Cumulative	Quarter	Cumulative	Quarter
1	2	3	4	5	6
I. OPERATING INCOME (112+113)	111	83.691.077	6.938.588	91.075.525	7.946.493
1. Sales revenue	112	79.544.559	5.809.695	86.783.904	6.238.487
2. Other operating income	113	4.146.518	1.128.893	4.291.621	1.708.006
II. OPERATING EXPENSES (115+116+120+124+125+126+129+130)	114	85.224.132	18.771.056	89.214.285	19.687.880
1. Changes in inventories of finished products and work in progress	115
2. Raw material and consumables used (117 do 119)	116	40.255.103	6.025.294	38.583.391	6.475.414
a) Cost of raw materials & consumables	117	20.425.319	2.470.954	19.532.474	2.206.059
b) Cost of goods sold	118	102.543	688	230.021	74.311
c) Other costs	119	19.727.241	3.553.652	18.820.896	4.195.044
3. Staff costs (121 do 123)	120	28.273.270	7.300.775	32.304.179	8.064.855
a) Net salaries	121	18.629.215	5.003.911	20.917.331	5.287.916
b) Employee income tax and contributions	122	5.859.267	1.389.856	7.127.870	1.756.729
c) Employer's contributions	123	3.784.788	907.008	4.258.978	1.020.210
4. Depreciation and amortisation expense	124	9.556.717	2.999.442	10.746.181	2.673.363
5. Other costs	125	6.232.324	1.604.091	6.035.452	1.142.346
6. Impairment losses (127+128)	126	107.142	107.143	272.948	272.948
a) non-current assets (except financial assets)	127	0	0	0	0
b) current asssets (except financial assets)	128	107.142	107.143	272.948	272.948
7. Provisions	129	506.377	506.377	1.030.039	1.030.039
8. Other operating expenses	130	293.199	227.934	242.095	28.915
III. FINANCIAL INCOME (132 do 136)	131	1.387.571	178.346	1.891.544	214.821
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	1.306.155	103.390	1.760.232	83.447
3. Income from associates and ownership interests	134
4. Unrealized gains	135
5. Other financial income	136	81.416	74.956	131.312	131.374
IV. FINANCIAL EXPENSES (138 do 141)	137	4.085.166	1.897.646	3.465.148	843.435
1. Interest, foreign exchange losses and other expenses with related parties	138
2. Interest, foreign exchange differences and other expenses with non-related and other entities	139	4.085.166	1.897.646	3.288.447	666.734
3. Unrealized losses	140
4. Other financial expenses	141			176.701	176.701

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

V. SHARE OF INCOME OF ASSOCIATES	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	85.078.648	7.116.934	92.967.069	8.161.314
X. TOTAL EXPENSES (114+137+143 + 145)	147	89.309.298	20.668.702	92.679.433	20.531.315
XI. PROFIT OR LOSS BEFORE TAX (146-147)	148	4.230.650	13.551.768	287.636	12.370.001
1. Profit before tax (146-147)	149			287.636
2. Loss before tax (147-146)	150	4.230.650	13.551.768		12.370.001
XII. INCOME TAX EXPENSE	151	0
XIII. PROFIT OR LOSS FOR THE PERIOD (148- 151)	152	4.230.650	13.551.768	287.636	12.370.001
1. Profit for the period (149-151)	153			287.636
2. Loss for the period (151-148)	154	4.230.650	13.551.768		12.370.001
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)	157
II. OTHER COMPREHENSIVE INCOME /LOSS BEFORE TAX (159 do 165)	158
1. Exchange differences arising from foreign operations	159
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 PERIOD	166
IV. NET OTHER COMPREHENSIVE INCOME OR LOSS FOR THE YEAR (158-166)	167
V. TOTAL COMPREHENSIVE INCOME/LOSS FOR	168
THE PERIOD (157+167) APPENDIX Statement of Comprehensive Income (to be filled in by entities submitting consolidated financial statements) VI. TOTAL COMPREHENSIVE INCOME/LOSS FOR THE PERIOD
1. Attributable to owners of the company	169
2. Attributable to non-controlling interests	170

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

CASH FLOW STATEMENT - Indirect Method for 01.01.2018 to 31.12.2018

Taxpayer: JADRAN D.D., CRIKVENICA
Item	ADP code	Preceding period	Current period
1	2	3	4
CASH FLOW FROM OPERATING ACTIVITIES
1. Income before taxes	001	-4.230.650	282.636
2. Depreciation and amortisation	002	9.556.717	10.746.181
3. Increase of current liabilities	003	3.426.431	5.178.653
4. Decrease of current receivables	004
5. Decrease of inventories	005		9.197
6. Other increase of cash flow	006	45.619	804.991
I. Total increase of cash flow from operating activities (001 do 006)	007	8.798.117	17.021.658
1. Decrease of current liabilities	008
2. Increase of current receivables	009	1.354.993	126.942
3. Increase of inventories	010	104.347
4. Other decrease of cash flow	011	1.044.985	15.351.713
II. Total decrease of cash flow from operating activities (008 do 011)	012	2.504.325	15.478.655
A1) NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (007-012)	013	6.293.792	1.543.003
A2) NET DECREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007) (012-007)	014
CASH FLOW FROM INVESTMENT ACTIVITIES
1. Proceeds from sale of non-current assets	015
2. Proceeds from sale of non-current financial assets	016
3. Proceeds from interest rates	017	35.578	1.705
4. Proceeds from dividends	018
5. Other proceeds from investment activities	019	1.209.246	5.475.630
III. Total cash proceeds from investment activities (015 do 019)	020	1.244.824	5.477.335
1. Purchase of non-current assets	021	52.440.868	6.860.305
2.Purchase of non-current financial assets	022
3. Other payments from investment activities	023		70.208.431
IV. Total cash payments from investment activities (021 do 023)	024	52.440.868	77.068.736
B1) NET INCREASE OF CASH FLOW FROM INVESMENT ACTIVITIES (020-024)	025
B2) NET DECREASE OF CASH FLOW FROM INVESMENT ACTIVITIES (024-020) (024-020)	026	51.196.044	71.591.401
CASH FLOW FROM FINANCIAL ACTIVITIES
1. Proceeds from issuing of equity and debt financial instruments	027
2. Proceeds from loan principal, debentures, loans and other borrowing	028	43.644.029	2.500.000
3. Other proceeds from financial activities	029	0	201.670.977
V. Total proceeds from financial activities (027 do 029)	030	43.644.029	204.170.977
1. Repayment of loan principal and bonds	031		11.272.884

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

2. Dividends paid	032		0
3. Payment of finance lease liabilities	033		0
4. Payments from repurchase of tresury shares	034		0
5. Other payments from financial activities	035
VI. Total cpayments from financial activities (031 do 035)	036		11.272.884
C1) NET INCREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (030-036)	037	43.644.029	192.898.093
C2) NET DECREASE OF CASH FLOW FROM FINANCIAL ACTIVITIES (036-030)	038
Total increase of cash flow (013 – 014 + 025 – 026 + 037 – 038)	039		122.849.695
Total decrease of cash flow (014 – 013 + 026 – 025 + 038 – 037)	040	1.258.223
Cash and cash equivalents at the beginning of the period	041	3.910.692	2.652.469
Increase of cash and cash equivalents	042		122.849.695
Decrease of cash and cash equivalents	043	1.258.223
Cash and cash equivalents at the end of the period	044	2.652.469	125.502.164

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

STATEMENT OF CHANGES IN EQUITY
for 1.1.2018 to 31.12.2018
Item	ADP code	Preceding period	Current period
1	2	3	4
1. Subscribed capital	001	491.316.690	482.507.730
2. Capital reserves	002	25.401.322	25.401.322
3. Profit reserves	003
4. Retained earnings or loss carried forward	004	11.586.151	3.718.510
5. Profit or loss of the current year	005	-4.230.650	287.636
6. Revaluation of fixed tangible assets	006
7. Revaluation of intangible assets	007
8. Revaluation of financial financial property available for sale	008
9. Other revaluation	009		208.809.600
10. Total capital and reserves (AOP 001 do 009)	010	524.073.513	720.724.798
11. Foreign exchange differences from net investments in foreign operations	011	0	0
12. Current and deferred taxes (part)	012
13. Cash flow hedge	013
14. Changes in accounting policies	014
15. Correction of significant mistakes from the previous period	015		-3.636.990
16. Other equity changes	016
17. Total equity increase or decrease (AOP 011 do 016)	017	0	-3.636.990

17 a. Attributable to parent company's shareholders	018
17 b. Attributable to non-controlling interests	019

The equity decreasing items are preceded by a minus

The data under ADP codes 001 to 009 is to be entered as balance as at the balance sheet date

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

AI assistant

Jadran d.d. Management Reports 2019

2094_10-q_2019-02-28_500a9e9b-3439-40e7-91b3-c7572b2507e5.pdf

MANAGEMENT REPORT

1. GENERAL INFORMATION

Company and business name

Registered seat and legal structure

Securities

Board members:

Supervisory Board:

2. ORGANISATIONAL AND OWNERSHIP STRUCTURE

The Company's shareholders on 31st December, 2018

3. BUSINESS PERFORMANCE RESULTS

4. KEY PERFORMANCE INDICATORS

5. RISK EXPOSURE

Competitive risk

Currency risk

Interest rate risk

Default risk

Liquidity risk

Regulatory and compliance risk (especially relating to changes in taxation and concession regulations)

Tourism risk and tourism trend changes

Litigation risk- Risk of losing in court

6. EMPLOYEES

7. CORPORATE MANAGEMENT CODE

8. APPENDICES

Balance Sheet as at 31 December 2018

INCOME STATEMENT

for the period 01 January 2018 to 31 December 2018

CASH FLOW STATEMENT - Indirect Method for 01.01.2018 to 31.12.2018

AI assistant

Jadran d.d. — Management Reports 2019

2094_10-q_2019-02-28_500a9e9b-3439-40e7-91b3-c7572b2507e5.pdf

MANAGEMENT REPORT

1. GENERAL INFORMATION

Company and business name

Registered seat and legal structure

Securities

Board members:

Supervisory Board:

2. ORGANISATIONAL AND OWNERSHIP STRUCTURE

The Company's shareholders on 31st December, 2018

3. BUSINESS PERFORMANCE RESULTS

4. KEY PERFORMANCE INDICATORS

5. RISK EXPOSURE

Competitive risk

Currency risk

Interest rate risk

Default risk

Liquidity risk

Regulatory and compliance risk (especially relating to changes in taxation and concession regulations)

Tourism risk and tourism trend changes

Litigation risk- Risk of losing in court

6. EMPLOYEES

7. CORPORATE MANAGEMENT CODE

8. APPENDICES

Balance Sheet as at 31 December 2018

INCOME STATEMENT

for the period 01 January 2018 to 31 December 2018

CASH FLOW STATEMENT - Indirect Method for 01.01.2018 to 31.12.2018

More from Jadran d.d.

Jadran d.d. Management Reports 2019