Report on the operations of the Petrol Group and the company Petrol d.d., Ljubljana in the first nine months of 2016

STATEMENT OF THE MANAGEMENT BOARD 4
INTRODUCTORY NOTES 5
HIGHLIGHTS 7
The Petrol Group's significant performance indicators 8
BUSINESS REPORT 10
Operations of the Petrol Group 11
A. SALES 12
Sales of petroleum products 12
Sales of liquefied petroleum gas 15
Sales of natural gas 15
Sales of electricity 15
Sales of merchandise 16
Sales of services 16
B. ENERGY AND ENVIRONMENTAL SYSTEMS 16
Natural gas distribution 16
Environmental solutions 17
Energy solutions 17
District heating 17
Electricity generation 17
Sustainable development 18
Employees 18
Investments 19
The quality management system 19
Social responsibility 21
Risk management 21
Petrol's shares 25
Contingent increase in share capital 28
Dividends 28
Own shares 28
Regular participation at investors' conferences and external communication 28
General Meeting of Petrol d.d., Ljubljana 28
Management Board of Petrol d.d., Ljubljana 29
Supervisory Board of Petrol d.d., Ljubljana 29
Credit rating 29
Disposal of an interest in the company GEN-I 29

Events after the end of the accounting period 29
FINANCIAL REPORT 30
Financial performance of the Petrol Group and the company Petrol d.d., Ljubljana 31
Notes to the financial statements 37
Notes to individual items in the financial statements 38
APPENDIX 1: ORGANISATIONAL STRUCTURE OF THE PETROL GROUP 59

STATEMENT OF THE MANAGEMENT BOARD

Members of the Management Board of Petrol d.d., Ljubljana, which comprises Tomaž Berločnik, President of the Management Board, Rok Vodnik, Member of the Management Board, Igor Stebernak, Member of the Management Board, and Ika Krevzel Panić, Member of the Management Board/Worker Director, declare that to their best knowledge:

− the financial report of the Petrol Group and Petrol d.d., Ljubljana for the first nine months of 2016 has been drawn up in accordance with International Financial Reporting Standards and gives a true and fair view of the assets and liabilities, financial position, financial performance and comprehensive income of the company Petrol d.d., Ljubljana and other companies included in the consolidation as a whole;
− the business report of the Petrol Group and Petrol d.d., Ljubljana for the first nine months of 2016 gives a fair view of the development and results of the Company's operations and its financial position, including the description of significant risks that the company Petrol d.d., Ljubljana and other companies included in the consolidation are exposed to as a whole;
− the report of the Petrol Group and Petrol d.d., Ljubljana for the first nine months of 2016 contains a fair presentation of significant transactions with related entities, which has been prepared in accordance with International Financial Reporting Standards.

Tomaž Berločnik

President of the Management Board

Rok Vodnik Member of the Management Board

Igor Stebernak Member of the Management Board

Ika Krevzel Panić Member of the Management Board/Worker Director #### INTRODUCTORY NOTES

The report on the operations of the Petrol Group and the company Petrol, d.d., Ljubljana, Dunajska 50, in the first nine months of 2016 has been published in accordance with the Market in Financial Instruments Act, the Ljubljana Stock Exchange Rules, Guidelines on Disclosure for Listed Companies and other relevant legislation.

The figures and explanation of the operations are based on unaudited consolidated financial statements of the Petrol Group and unaudited financial statements of the company Petrol d.d., Ljubljana for the first nine months of 2016 prepared in compliance with the Companies Act and IAS 34 – Interim Financial Reporting.

Subsidiaries are included in the consolidated financial statements prepared in accordance with IFRS on the basis of the full consolidation method, while jointly controlled entities and associates are included on the basis of the equity method.

In the separate financial statements prepared in accordance with IFRS, investments in subsidiaries, jointly controlled entities and associates are carried at historical cost.

The report on the operations in the first nine months of 2016 has been published on the website of Petrol d.d., Ljubljana (http://www.petrol.si), and is available on demand at the registered office of Petrol d.d., Ljubljana, Dunajska cesta 50, 1000 Ljubljana, every working day between 8 am and 3 pm.

The Company's Supervisory Board discussed the report on the operations of the Petrol Group and the company Petrol d.d., Ljubljana in the first nine months of 2016 at its meeting held on 17 November 2016.

Company name	Petrol, slovenska energetska družba, d.d., Ljubljana
Abbreviated company name	Petrol d.d., Ljubljana
Registered office	Dunajska cesta 50, 1000 Ljubljana
Telephone	(01) 47 14 234
Telefax	(01) 47 14 809
Website	http://www.petrol.si
Activity code	47.301
Company registration number	5025796000
Tax number	SI 80267432
Share capital	EUR million 52.24
Number of shares	12.086.301
President of the Management board	Tomaž Berločnik
Members of the Management board	Rok Vodnik, Janez Zivko, Ika Krevzel Panić (worker director)
President of the Supervisory board	Tomaž Kuntarič

Table 1: Profile of the parent company Petrol d.d., Ljubljana

List of acronyms and explanation of financial ratio calculations

Ratio/acronym	Explanation

SEE	South Eastern Europe
Merchandise	Consists of automotive products, foodstuffs, accessories, tobacco and lottery products, coupons and cards, coffee-to-go, chemical products, wood biomass.
EBITDA	Operating profit or loss + regular depreciation and amortisation
Earnings per share	Net profit or loss for the period / weighted average number of issued ordinary shares, excluding own shares
Book value of share	Equity as at period end / total number of shares

HIGHLIGHTS

The Petrol Group's significant performance indicators

The Petrol Group	Unit	I-IX 2016		I-IX 2015 Index 2016 / 2015
Net sales revenues	EUR million	2,709.5	2,843.1	95
Gross profit or loss	EUR million	282.5	257.2	110
Operating profit or loss	EUR million	77.0	69.3	111
Net profit or loss	EUR million	57.2	48.5	118
EBITDA	EUR million	110.0	102.2	108
Non-current (long-term) assets as at period end	EUR million	807.2	796.6	101
Earnings per share	EUR	27.8	23.5	118
Net debt / Equity		0.7	1.0	72
Net debt / EBITDA1		2.9	3.3	88

1 Non-current (long-term) assets as at period end

SKUPINA PETROL	Unit	I-IX 2016		I-IX 2015 Index 2016 / 2015
Volume of petroleum products sold	thousand tons	2,286.6	2,068.4	111
Volume of liquefied petroleum gas sold	thousand tons	105.2	57.5	183
Volume of natural gas sold	million m3	77.3	79.4	97
Electricity sold	TWh	11.8	10.2	116
Heat sold	thousand MWh	83.4	81.1	103
Revenue from the sale of merchandise	EUR million	377.8	366.4	103
Investments in fixed assets	EUR million	47.3	46.7	101
Number of service stations as at period end1		485	487	100

¹Number of service stations for the year 2015 as at 31 December 2015.

Companies Register entry: District Court of Ljubljana, Registration number: 5025796000, Share capital: EUR 52,240,977.04, VAT ID: SI80267432 8/59

Sli5ka 2, Slika 3, Sika 4, Slka 5

Report on the operations of the Petrol Group and the company Petrol d.d., Ljubljana in the first nine months of 2016

Figure 1: Volume of petroleum products sold by the Petrol Group

Figure 3: Increase in the number of the Petrol Group's service stations

Figure 2: The Petrol Group's revenue from the sale of merchandise

Figure 4: Net profit or loss of the Petrol group

Figure 6: Breakdown of the Petrol Group's investments in the first nine months of 2016

BUSINESS REPORT

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Operations of the Petrol Group

The Petrol Group operates in a competitive environment influenced by oil price fluctuations, global and domestic economic developments, and national laws governing the pricing of energy products. Slovenia's economic situation is improving, but Croatia and other SE Europe countries which are part of Petrol's sales market still face extremely tough economic conditions, low purchasing power, high unemployment and lack of payment discipline. In Slovenia, the selling prices of petroleum products were higher than in most neighbouring countries.

			EUR million
The Petrol Group	I-IX 2016		I-IX 2015 Index 2016 / 2015
Net sales revenues	2,709.5	2,843.1	95
Gross profit or loss	282.5	257.2	110
EBITDA	110.0	102.2	108
Net profit or loss	57.2	48.5	118
Non-current (long-term) assets as at period end	807.2	796.6	101

Table 2: The Petrol Group's financial performance indicators

In the first nine months of 2016, the Petrol Group sold 2.3 million tons of petroleum products¹ , up 11 percent from the same period of 2015. In Slovenia, the nine-month sales of petroleum products stood at 1.1 million tons, accounting for 50 percent of the Petrol Group's total sales. In the same period, the Group sold 556.0 thousand tons of petroleum products in SEE markets, representing 24 percent of the Petrol Group's total sales, and 597.1 thousand tons in EU markets, which represents 26 percent of the Group's total sales.

In the first nine months of 2016, the Petrol Group generated 42 percent of petroleum product sales in the retail market and 58 percent in the wholesale market. At the end of September 2016, the Petrol Group's retail network consisted of 485 service stations, of which 314 were in Slovenia, 105 in Croatia, 36 in Bosnia and Herzegovina, 9 in Serbia, 10 in Montenegro and 11 in Kosovo.

The Petrol Group generated EUR 377.8 million in revenue from the sale of merchandise in the period under review, an increase of 3 percent compared to the same period of the previous year.

In the same period, the Petrol Group sold 105.2 thousand tons of liquefied petroleum gas, a year-on-year increase of 83 percent, and 54.2 thousand tons (77.3 million m³ ) of natural gas or 3 percent less than in the same period of the previous year.

In addition, the Petrol Group sold 11.8 TWh of electricity, which was 16 percent more than in the same period of the previous year, and 83.4 thousand MWh of heat, up 3 percent from the same period of the previous year.

¹ Petroleum product sales do not include liquefied petroleum gas sales, which are presented separately.

Entered into the Companies Register of the District Court of Ljubljana; Company Registration Number: 5025796000; Share capital: EUR 52,240,977.04, VAT ID: SI80267432 11/59

What follows is a detailed presentation of the Petrol Group's operations in the first nine months of 2016 broken down by type of activity:

A. Sales consisting of petroleum product sales, liquefied petroleum gas sales, natural gas sales, electricity sales to end users, merchandise sales, sale of services and electricity trading and
B. Energy and environmental systems consisting of natural gas distribution, energy solutions, environmental solutions, district heating, electricity generation and biomass production.

A. SALES

Sales of petroleum products

In the first nine months of 2016, the Petrol Group sold 2.3 million tons of petroleum products, a year-on-year increase of 11 percent.

In this period, the Petrol Group sold 1.1 million tons of petroleum products in Slovenia, which was 6 percent more than in the same period of 2015. Of this quantity, liquid fuels accounted for 1.09 million tons and other petroleum products for 46.8 thousand tons. Motor fuel sales (petrol and diesel fuel) were up 8 percent compared to the previous year's figures for this period.

In SEE markets, the Petrol Group sold 556.0 thousand tons of petroleum products in the first nine months of 2016, down 6 percent year-on-year. The most important commodities sold in SEE markets are diesel fuel and petrol.

In addition to the above, the jointly controlled entity Petrol - Oti - Slovenija L.L.C. sold 8.7 thousand tons of petroleum products, up 16 percent from the same period of the previous year.

In EU markets, the Petrol Group sold 597.1 thousand tons of petroleum products in the first nine months of 2016, which was 47 percent more than in the same period of 2015. The most important commodity sold in EU markets is diesel fuel.

Key impacts on operations

Fuel pricing in Slovenia

In Slovenia, fuel prices were set in accordance with the Decrees Setting Prices for Petroleum Products in force from 9 October 2015 to 8 February 2016, from 9 February to 8 April 2016, from 9 April to 8 June 2016, from 9 June to 8 July 2016, from 9 July to 8 September 2016 and from 9 September to 8 November 2016. In all decrees, the model-based margin applicable to government-regulated petroleum products was set at a fixed amount (EUR 0.08701 per litre of petrol and EUR 0.08158 per litre of diesel fuel).

Since 9 April 2016, the prices of the 98-octane and higher-octane petrol and of extra light heating oil have been liberalised and set by the market.

Entered into the Companies Register of the District Court of Ljubljana; Company Registration Number: 5025796000; Share capital: EUR 52,240,977.04, VAT ID: SI80267432 12/59

Slovenia's gross margins for petroleum products, which are, under the model, set at a fixed amount and do not reflect changes in retail prices, are still below European average. In the case of petrol, they amounted to 73 percent of the average gross margin in the EU countries (65 percent if the compulsory stocks membership fee is not taken into account) and in the case of diesel fuel to 59 percent (52 percent if the compulsory stocks membership fee is not taken into account) (own calculations based on Platts and Oil Bulletin data).

On 7 November 2016, the Government of the Republic of Slovenia adopted a new Decree Setting Prices for Petroleum Products for the period from 9 November 2016 to 30 June 2017, liberalising the prices of petrol and diesel fuel at motorway and expressway service stations while keeping the prices of petrol and diesel fuel at other service stations regulated.

Fuel pricing in Croatia

Since 20 February 2014, when the Oil and Petroleum Products Market Act entered into force and fully liberalised the pricing of petroleum products, the prices of petroleum products in Croatia have been set freely in accordance with market conditions.

Fuel pricing in Bosnia and Herzegovina

In Bosnia and Herzegovina, the prices of petroleum products are not government-regulated and are set freely in accordance with market conditions. The prices normally change weekly. In the Federation of Bosnia and Herzegovina, retailers notify the Federal Ministry of Commerce of new retail prices four days in advance, whereas in the Republic of Srpska changes in retail prices need not be notified in advance. Due to the free setting of prices, retail fuel prices vary according to the location of a service station.

Fuel pricing in Serbia

Since the legislation liberalising Serbia's oil market (unregulated imports of oil and petroleum products) entered into force on 1 January 2011, the prices of petroleum products have no longer been government-regulated and are set freely in accordance with market conditions.

Fuel pricing in Montenegro

In Montenegro, the prices of petroleum products are set in accordance with the Regulation on the Method of Setting Maximum Retail Prices, which has been in force since 1 January 2011. The prices change fortnightly, provided that prices on the oil market (Platts European Marketscan) and the exchange rates of the euro and the US dollar change by more than 5 percent. In addition to market oil prices and changes in the exchange rates of the euro and the US dollar, the methodology used to calculate selling prices includes taxes, the costs of transhipment, handling, bank charges, storage, transport and distribution, as well as (excise) duties and an oil companies' gross margin. The oil companies' gross margin amounts to EUR 0.063 per litre of petrol, EUR 0.064 per litre of eurodiesel and EUR 0,076 per litre of extra light heating oil. In addition to these gross margins, liquid fuel traders may factor in all of the above costs at EUR 0.05 per litre of petrol, EUR 0.05 per litre of eurodiesel and EUR 0.026 per litre of extra light heating oil.

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Fuel pricing in Kosovo

In Kosovo, retail and wholesale prices of petroleum products are not government-regulated. Only in the case of sales of petroleum products to government institutions and state-owned companies are prices set in accordance with the prescribed methodology, which takes into account average monthly market prices, changes in the exchange rate of the euro and the US dollar, logistics costs and the maximum margin. These prices represent an unofficial basis for retail prices, which change according to market fuel prices.

Changes in oil and petroleum product prices in the world market

The average price of Brent Dated North Sea crude oil stood at USD 41.89 per barrel in the first nine months of 2016, down 24 percent year-on-year. The average price in euros was down 26 percent. During this period, the price of Brent crude peaked on 8 June 2016, reaching USD 50.72 per barrel. Its lowest price was recorded on 20 January 2016 at USD 25.99 per barrel. The prices of petrol and middle distillates followed the same trends as crude oil prices.

Figure 7: Changes in Brent Dated High oil price in the first nine months of 2016 in USD/barrel

SOURCE: Petrol, 2016

Entered into the Companies Register of the District Court of Ljubljana; Company Registration Number: 5025796000; Share capital: EUR 52,240,977.04, VAT ID: SI80267432 14/59 After dipping below USD 30 per barrel in January 2016, oil prices rose again in February and March as Saudi Arabia, Russia, Venezuela and Qatar first published their plans to freeze supply. On the supply side, Iran became an important player after the international sanctions had been lifted and has significantly increased oil output, which is, however, still below presanction levels. At the April meeting in Doha, OPEC failed to come to an agreement to freeze oil production. In the second quarter, oil prices rose mainly on account of lower oil stocks in the United States, increase in global oil demand, and oil and gas supply disruptions in Canada and Nigeria. Also spurring oil prices were the results of the EU referendum in the United Kingdom. OPEC, in cooperation with non-members (Russia), devotes much effort to stabilising oil prices.

Oil price movements will continue to depend largely on OPEC's oil output agreements, the situation in the Middle East and in Iran, on economic growth expectations, US and EU oil stocks figures, and on demand in China.

Changes in the US dollar to the euro exchange rate

The US dollar to the euro exchange rate ranged between 1.07 and 1.16 US dollars per euro in the first nine months of 2016. The average exchange rate of the US dollar according to the exchange rate of the European Central Bank stood at 1.12 US dollars per euro in the period concerned.

Sales of liquefied petroleum gas

In the first nine months of 2016, the Petrol Group sold 105.2 thousand tons of liquefied petroleum gas, a year-on-year increase of 83 percent, mainly thanks to the consolidation of LPG sales of the company Petrol LPG d.o.o. Beograd (at the end of 2015).

At the end of September 2016, the Petrol Group operated 6 LPG supply concessions in Slovenia. In addition, the company Petrol Plin d.o.o. has LPG supply contracts in the towns of Šibenik and Rijeka. Liquefied petroleum gas is supplied to customers also through LPG storage tanks and at service stations as autogas.

Sales of natural gas

In the first nine months of 2016, the Petrol Group sold 54.2 thousand tons (77.3 million m³ ) of natural gas or 3 percent less than in the same period of the previous year.

Sales of electricity

The Petrol Group has positioned itself as an important electricity market player. It set up a complete infrastructure for wholesale electricity trading in Slovenia, EU countries and SEE countries, and for the sale of electricity to end users in Slovenia (businesses and households). At the end of September 2016, the Petrol Group supplied electricity to more than 49 thousand households and 2 thousand businesses.

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In the first nine months of 2016, the Group sold 11,8 TWh of electricity (of which 1.1 TWh to end users, 10.3 TWh as part of trading, and 55,048 MWh as part of energy and environmental systems), up 16 percent from the same period of 2015.

Sales of merchandise

Merchandise sales consist of sales of automotive products, foodstuffs, accessories, tobacco and lottery products, coupons and cards, coffee-to-go, chemical products and wood biomass. The Petrol Group generated EUR 377.8 million in revenue from the sale of merchandise in the first nine months of 2016, an increase of 3 percent compared to the same period of the previous year.

In Slovenia, the Petrol Group generated EUR 336.3 million in revenue from the sale of merchandise in the period under review, an increase of 2 percent compared to the same period of the previous year. The range at Petrol's points of sale is modified and expanded as we try to mitigate the impact of adverse economic conditions by quickly adapting the range to the needs of our service station customers.

In SEE markets, the Petrol Group generated EUR 41.5 million in revenue from the sale of merchandise in the period concerned, a year-on-year increase of 9 percent. The best results were achieved in tobacco and food sales.

Sales of services

Services consist of revenue from storage and petroleum-product handling services, renting of business premises and hospitality facilities, transport, carwash services, revenue from Petrol Club cards, and other services. In the first nine months of 2016, the Petrol Group generated EUR 26.5 million in revenue from the services related to oil and merchandise sales in Slovenia.

B. ENERGY AND ENVIRONMENTAL SYSTEMS

Natural gas distribution

In the first nine months of 2016, the Petrol Group distributed 59.1 thousand tons (84.3 million m 3 ) of natural gas.

At the end of September 2016, the Group operated 24 natural gas supply concessions in Slovenia and, in Serbia, supplied natural gas to the municipalities of Bačka Topola and Pećinci as well as three Belgrade municipalities.

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Environmental solutions

In the first nine months of 2016, the Petrol Group operated four concessions for the public utility service of municipal wastewater treatment. The capacity of the treatment plant in Murska Sobota is 42,000 population equivalents (PE), in Sežana 6,000 PE, in Ig and Matena 6,000 PE and in Mežica 4,000 PE. Petrol also managed industrial waste treatment plants at Vevče Paper Mill and Paloma. As an important member of the company Aquasystems d.o.o., Petrol d.d., Ljubljana is involved in the treatment of municipal wastewater in the Municipality of Maribor, the capacity of which is 190,000 PE.

At all waste treatment plants, the treatment process and financial performance were in line with the plan in the period concerned.

The Petrol Group also produces energy from waste. At Ihan and Črnomelj biogas plants, Petrol processes organic waste to produce green electricity and is Slovenia's biggest producer of green electricity from organic waste. For greater efficiency, Petrol built in Ihan a dehydration plant for sludge obtained from treatment plants. Dehydrated sludge is transformed into secondary fuel.

In the first nine months of 2016, the Petrol Group generated EUR 4.1 million in revenue from environmental solutions.

Energy solutions

Energy solutions consist of an energy range offered in the following segments:

development of alternative solutions for supplying heat and other forms of energy (energy packages) to households and small-business customers;
implementation of more complex comprehensive energy solutions projects;
production of energy from renewable sources.

In the first nine months of 2016, the public economic service of public lighting was performed in several municipalities, accompanied by other projects in the area of energy solutions.

During this period, the Petrol Group generated EUR 14.0 million in sales revenue from energy solutions.

District heating

Heat is supplied to customers through district heating systems. In the first nine months of 2016, the Petrol Group generated EUR 4.9 million in sales revenue from district heating.

During this period, the Group sold 83.4 thousand MWh of heat (some of it as part of energy solutions) or 3 percent more than in the same period of the previous year.

Electricity generation

At the end of 2015, Petrol d.d., Ljubljana co-founded a Bosnia and Herzegovina based company Petrol Hidroenergija d.o.o. Teslić, which is to produce hydroelectricity. In 2016 the

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company Vjetroelektrarne Glunča d.o.o. (Croatia) was established, which will be engaged in the production of wind electricity. Both power plants will start operating in 2017.

Sustainable development

Employees

On 30 September 2016, the Petrol Group had 4,157 employees, of which 33 percent worked for subsidiary companies abroad. The number of employees increased by 89 compared to the end of 2015. Staff numbers rose mainly at third-party managed service stations and within the company Petrol d.o.o.

Figure 9: Changes in the number of employees of the Petrol Group and at third-party managed service stations in the period 2013 – 2016

Employee structure

At the end of September 2016, the average age of the Petrol Group employees was 39.5 years. 64 percent of the employees were male and 36 percent were female.

The educational structure of the Petrol Group has been improving over the years. This is a result of employee training on the one hand and HR policy on the other. Newly hired employees with higher education thus improve the educational structure, while at the same time employees with lower education leave the company. The Petrol Group has a keen interest in training its employees, as knowledge represents one of Petrol's key competitive advantages.

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Training

In the first nine months of 2016, more than 11 thousand employees took part in various forms of training. In all, the Petrol Group provided in excess of 59 thousand teaching hours of training, which represented, on average, 15 teaching hours of training per employee in the period concerned. Organised as part of the Petrol Group is Petrol Academy. Its main goal is systematic and comprehensive training of all employees. The Group carried out technical and legally required training in the period under review.

Investments

In the first nine months of 2016, net investments² in property, plant and equipment, intangible assets and long-term investments stood at EUR 47.3 million. Out of the above amount, 16 percent was allocated to sales in Slovenia, 9 percent to sales in SE Europe, 68 percent to energy and environmental systems, and 7 percent to the upgrading of information and other infrastructure.

Figure 10: Breakdown of the Petrol Group's investments in the first nine months of 2016

The quality management system

The Petrol Group's operations are based on the implementation of strict quality standards. Since 1997, we have been constantly upgrading and expanding the Group's quality management system. In addition to the certified quality and environmental management systems, the comprehensive quality management system incorporates the requirements of the HACCP food safety management system, of the OHSAS occupational health and safety system and of the ISO 27001 information security system. In 2016 the ISO 50001 energy management system was also incorporated into the quality management system as proof of our systematic approach to continuous improvement in this field and the Company's commitment to sustainable development.

² Net investments in fixed assets = investments in fixed assets – disposal of fixed assets.

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The certification of the energy management system to the ISO 50001 standard was completed in January 2016. The system allows for continuous monitoring of the Company's energy efficiency indicators and control over implemented energy measures. It also encourages active staff involvement in the area of efficient energy consumption and renewable energy sources. The Company's energy management system covers oil and merchandise sale processes, energy and environmental processes as well as Petrol's energy and environmental solutions provided to our customers.

In March 2016, Petrol d.d., Ljubljana was awarded the OHSAS 18001 occupational health and safety certificate for comprehensive solutions processes in the area of district and energy systems, water supply systems, efficient lighting and energy management in buildings.

As a result of the merger of the company Petrol Tehnologija d.o.o. into the parent company Petrol d.d., Ljubljana, ISO 17020 accreditation certificates were transferred to the parent company in May 2016.

Company	Quality	Environmental	Energy	Laboratory	Other
	management	management	management	accreditations	certificates
	system	system	system
Petrol d.d., Ljubljana	ISO 9001:	ISO 14001:2004	ISO 50001:2011 SIST EN		OHSAS
	2008			ISO/IEC 17025:	18001*
				2012	RC, FSC*
				SIST EN
				ISO/IEC 17020:
				2012
Petrol Energetika	ISO	ISO 14001:2004	/	/
d.o.o.	9001:2008
Petrol d.o.o.	ISO	ISO 14001:2004	/	/
	9001:2008
Petrol Geoterm	ISO	/	/	/
d.o.o.	9001:2008
Beogas d.o.o.	ISO	/	/	/
	9001:2008

Table 3: Overview of certificates and laboratory accreditations

* Petrol d.d., Ljubljana is a holder of the OHSAS 18001 certificate for comprehensive solutions processes performed by the Energy Solutions organisational unit in the area of district and energy systems, water supply systems, efficient lighting and energy management in buildings.

** Based on the Report on the implementation of the Responsible Care Global Charter commitments, Petrol d.d., Ljubljana became a holder of a Responsible Care Certificate for its activities relating to storage, logistics and retail network of service stations in Slovenia and granted the right to use the initiative's logo.

*** Petrol d.d. Ljubljana is a holder of an FSC certificate for the production of wood chips used for heat generation. The FSC certificate, which is issued by an international NGO called the Forest Stewardship Council, promotes environmentally appropriate, socially beneficial and economically viable management of forests.

In March 2016, Petrol Laboratory received a monitoring visit by SA in connection with its quality management system certified to the SIST EN ISO/IEC 17025 standard.

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In March 2016, a follow-up audit of the ISO 9001 quality management system took place at the company Beogas d.o.o. No non-compliance issues were identified in the process.

In the first half of 2016, the quality management system of the subsidiary Petrol d.o.o. was aligned with the requirements of the new edition of the ISO 9001: 2015 standard. In May 2016, a recertification audit of the ISO 9001 quality management systems and the ISO 14001 environmental management systems took place.

In June 2016, a follow-up audit of the ISO 9001 quality management systems, the ISO 14001 environmental management system and the ISO 5001 energy management system of the companies Petrol d.d., Ljubljana and Petrol Energetika d.o.o. was conducted. Both companies passed the audit and no non-compliance issues were identified. In September 2016, a follow-up audit of the ISO 9001 quality management systems was conducted also at the company Petrol Geoterm d.o.o., identifying no non-compliance issues.

Social responsibility

Caring for social and environmental issues has been part of the Petrol's operations for a number of years. The demands and challenges of our time are addressed based on a longterm growth strategy and a strong awareness that supporting the environment in which we operate significantly affects our operations and development. For many years we have been helping wider social and local communities achieve a dynamic lifestyle and better quality of life. We demonstrate our social responsibility by supporting numerous sports, arts, humanitarian and environmental projects. In the Petrol Group, social responsibility is perceived as a lasting commitment to work together with the environment in which it operates. To celebrate the Slovene Blood Donation Day (4 June), we joined forces with the Slovene Red Cross and the Blood Transfusion Centre of Slovenia to organise the pan-Slovene blood donation initiative "Give Energy for Life!" for the sixth time already. This year's slogan was "Giving is a joy". On 18 May, the International Museum Day, Petrol donated archival exhibits to the Technical Museum of Slovenia (located in Bistra pri Vrhniki) in perpetuity. The exhibits are displayed as part of the exhibition From Pharmacy to Service Station. During Petrol's corporate volunteering week, from 26 to 29 September 2016, employees helped out with five charity projects.

Risk management

The Petrol Group manages risks using a comprehensive risk management system, making sure that the Company's key risks are identified, assessed, managed and monitored. In doing that, it aims to develop a risk-awareness culture to ensure better control over the risks and better information for decision-making at all levels of the Group's operation. Risk management concerns each Petrol Group employee who is, as a result of their decisions and actions, exposed to risks on a daily basis while carrying out their work assignments and responsibilities.

Petrol's risk model comprises 20 risk categories that are divided into two groups:

environment risks and
performance risks.

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According to risk assessment results, the most relevant and probable risks comprise the following financial risks: price, credit, foreign exchange and liquidity risks.

In addition to the main financial risks, the most relevant and probable risks include economic environment risks, interest rate risks, legislation and regulation risks, strategic decisionmaking risks, commercial risks, and business and financial decision-making risks.

Price and foreign exchange risk

The Petrol Group's business model includes energy products, such as petroleum products, natural gas, electricity and liquefied petroleum gas, exposing the Group to price, quantity and foreign exchange risks arising from the purchase and sale of these products.

The Petrol Group purchases petroleum products under international market conditions, pays for them mostly in US dollars and sells them in local currencies. Because the global oil market and the US dollar market constitute two of the most volatile global markets, the Petrol Group is exposed to both the price risk (changes in the prices of petroleum products) and the foreign exchange risk (changes in the EUR/USD exchange rate) while pursuing its core line of business. The Petrol Group manages quantity and price risks to the largest extent possible by matching suppliers' terms of procurement with the terms of sale applying to customers. The petroleum product pricing model applicable to the Slovene market allows for changes in global petroleum product prices and exchange rates to be passed on to domestic selling prices. Any remaining open price or foreign exchange positions are closed through the use of financial instruments, in particular commodity swaps in the case of price risks and forward contracts in the case of foreign exchange risks.

The Petrol Group plays an increasingly important role in electricity production, sale, distribution and trading, exposing it to price and quantity risks. These are managed with an assortment of limits systems defined depending on the business partner, the area of trading and the value at risk, and with appropriate processes in place to monitor and control these risks.

In addition to the risks arising from changes in the EUR/USD exchange rate, the Petrol Group is exposed, to some degree, also to the risk of changes in other currencies, which is linked to doing business in the region. The Group monitors open foreign exchange positions and decides how to manage them on a monthly basis.

With regard to other foreign exchange exposures, we should point out the risk of changes in the EUR/HRK exchange rate. For this purpose, the impact of changes in the EUR/HRK exchange rate on operations of Croatian-based companies is analysed on a regular basis. The spread between the minimum and maximum level of the EUR/HRK exchange rate stood at 2.7 percent in the first nine months of 2016. Thanks to a relatively small exposure and the low volatility of the exchange rate, no forward contracts to hedge the foreign exchange risk were concluded in 2016. In Croatia, the foreign exchange risk in procurement was reduced by substantially increasing the volume of procurement done in HRK in Croatia directly and by placing surplus liquidity with the parent company in euros.

Foreign exchange risks are also encountered in Serbia with regard to the EUR/RSD exchange rate. There, the procurement of petroleum products is done mostly in RSD, which

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enables us to largely avoid the foreign exchange risks. In the first nine months of 2016, the EUR/RSD exchange rate ranged between RSD 123.70 and RSD 120.50 per 1 euro, while the average exchange rate stood at RSD 122.82 per 1 euro.

Transactions with derivatives are entered into only to hedge against price and foreign exchange risks and not for reasons of speculative nature.

Credit risk

The credit risk was assessed as the third most relevant financial risk, to which the Petrol Group is exposed in connection with the sale of goods and services to natural and legal entities. The risk is managed using the measures outlined below.

The operating receivables management system provides us with an efficient credit risk management. In 2016 we introduced some changes to the process of setting and approving credit limits for the entire Petrol Group in order to further improve and harmonise the credit risk management system.

As part of the usual receivables management processes, we keep actively pursuing the collection of receivables. Particular attention is given to individual treatment of major customers or customers in relation to which outstanding receivables balances exceed EUR 250,000. We refine procedures for approving the amount of exposure (limits) to individual buyers and expand the range of first-class credit insurance instruments as a requirement to approve sales (receivables insurance with credit insurance companies, bank guarantees, letters of credit, collaterals, corporate guarantees, securities, mortgages, pledges). A great deal of work is being put into the management of receivables from large customers in Slovenia, and significant attention is also devoted to the collection of receivables in SE Europe markets, where the solvency and payment discipline of the business sector differs from that in Slovenia. Receivables are systematically monitored by age, region and organisational unit as well as by quality and individual customer. The exposure of customers in the Petrol Group's portfolio to the credit risk is monitored at a global level. To monitor receivables, we use a joint receivables management application, which provides us with automated control over the exposure to individual customers and the possibility to respond immediately. Through experience, the application is continuously improved. In addition, we introduced a centralised control over credit insurance instruments received.

We estimate that credit risks are adequately managed within the Petrol Group. Our estimate is based on the nature of our products, our market share, our large customer base, the vast range of credit insurance instruments and a higher volume of secured receivables. The Petrol Group too, however, is unable to fully avoid the consequences of bankruptcies, compulsory composition proceedings and personal bankruptcies.

Liquidity risk

The Petrol Group has been assigned a "BBB-" long-term international credit rating, an "A-3" short-term credit rating and a "stable" credit rating outlook by Standard & Poor's Ratings Services, which reaffirmed the ratings on 24 June 2016. This investment-grade rating enables us to tap international financial markets more easily and represents an additional

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commitment towards successful operations and the deleveraging of the Petrol Group. We are currently introducing relevant S&P's methodology into the management of liquidity risks.

In the first nine months of 2016, no additional long-term loans were raised. Operations were financed through the already acquired long-term sources and, partly, through short-term loans. Moreover, we restructured our sources of financing by repaying a portion of long-term loans early, as a way of managing short-term liquidity surpluses, while raising long-term revolving credit facilities to accommodate our liquidity needs in accordance with S&P criteria. In the period concerned, average petroleum product prices were lower year-on-year, meaning that less working capital was needed. The acquired long-term and short-term credit lines provide us with a high level of liquidity.

Cash flow management nevertheless requires considerable attention and prudence, especially as regards the planning of cash inflows from lay away sales, this being the main source of credit risks and, consequently, liquidity risks.

The Petrol Group is capable of meeting all of its outstanding liabilities at any given moment. The Group's successful operations in particular are a guarantee for the Group's long-term solvency and boost its equity capital.

Interest rate risk

The Petrol Group regularly monitors its exposure to the interest rate risk. 23 percent of the Group's non-current financial liabilities contain a variable interest rate that is linked to EURIBOR. The average EURIBOR rate was lower in the first nine months of 2016 than at the end of 2015 and thus remains historically low (negative). In 2016 the Petrol Group's overall borrowing interest rate was, on average, lower than in 2015. This is the result of low EURIBOR rates, interest rate margins, which had been further reduced, and a higher amount of short-term debt.

In 2015 we updated the interest rate risk management policy. Limits for interest rate risk exposure reflect the risk of changes to the EURIBOR rate in the coming year and cumulative figures for the next five years.

To hedge against exposure to the interest rate risk, a portion of variable interest rates is transformed into a fixed interest rate using derivative financial instruments, thus protecting our net interest position. When deciding whether to pursue additional hedging activities, forecasts regarding interest rate changes are considered. The time of hedging and the type of instruments used to this effect are determined based on market conditions. In connection with extending the maturity of a EUR 50 million long-term loan, an existing interest rate hedging contract of EUR 37.5 million was sold off early in the first nine months of 2016 and a new interest rate hedging contract of EUR 50 million concluded, which has a longer maturity.

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Petrol's shares

At the end of September 2016, share prices at the Ljubljana Stock Exchange were on average higher than at the end of 2015. This was also reflected in the SBITOP, the Slovene blue-chip index, which is used as a benchmark and provides information on changes in the prices of the most important and liquid shares traded on the regulated market. The index also comprises Petrol's shares. The SBITOP stood at 741.71 as at the end of September 2016 and was up 6.5 percent relative to the end of 2015 (696.15). During this period, Petrol's shares gained 19.7 percent in value. In terms of trading volume, which in the case of Petrol's shares amounted to EUR 40 million between January and September, the shares were ranked second among the shares traded on the Ljubljana Stock Exchange. In terms of market capitalisation, which stood at EUR 638.8 million as at 30 September 2016, the shares were also ranked second and accounted for 12.2 percent of the total Slovene stock market capitalisation on the said date.

Figure 11: Base index changes for Petrol d.d., Ljubljana's closing share price and the SBITOP index in the first nine months of 2016 compared to the end of 2015

In the first nine months of 2016, the price of Petrol's shares ranged between EUR 246.1 and EUR 312.8 per share. Their average price for the period stood at EUR 271.9 and their price as at the end of September 2016 at EUR 306.2. The Petrol Group's earnings per share stood at EUR 27.75, with its book value per share amounting to EUR 278.54. Petrol d.d., Ljubljana had 31,017 shareholders as at 30 September 2016. At the end of September 2016, 486,335 shares or 23.31 percent of all shares were held by foreign legal or natural persons. Compared to the end of 2015, the number of foreign shareholders increased by 2.4 percentage points.

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Figure 12: Closing price and the volume of trading in Petrol's shares in the first nine months of 2016

Figure 13: Ownership structure of Petrol d.d., Ljubljana as at 30 September 2016

Table 4: Changes in the ownership structure of Petrol d.d., Ljubljana (comparison between 30 September 2016 and 31 December 2015)

	30 September 2016		31 December 2015
	No. of Shares	in %	No. of Shares	in %
Slovenski državni holding, d.d.	412,009	19.7%	412,009	19.7%
Kapitalska družba d.d. together with own funds	184,852	8.9%	184,852	8.9%
Other institutional investors - domestic	297,525	14.3%	323,839	15.5%
Banks - domestic	113,386	5.4%	109,363	5.2%
Insurers - domestic	25,486	1.2%	25,571	1.2%
Foreign legal entities (banks and other inst. inv.)	482,695	23.1%	433,057	20.8%
Private individuals (domestic and foreign)	473,502	22.7%	496,809	23.8%
Own shares	24,703	1.2%	24,703	1.2%
Others	72,143	3.5%	76,098	3.7%
Sum	2,086,301	100.0%	2,086,301	100.0%

Table 5: 10 largest shareholders of Petrol d.d., Ljubljana as at 30 September 2016

Shareholder	Address	No. of Shares Share in %
1 SLOVENSKI DRŽAVNI HOLDING, D.D.	MALA ULICA 5, 1000 LJUBLJANA	412,009	19.75%
2 ČEŠKOSLOVENSKA OBCHODNI BANK, A.S. - FID	RADLICKA 333/150, 150 57 PRAGA 5, REPUBLIKA ČEŠKA	267,076	12.80%
3 KAPITALSKA DRUŽBA, D.D.	DUNAJSKA CESTA 119, 1000 LJUBLJANA	172,639	8.27%
4 SOCIETE GENERALE - SPLITSKA BANKA D.D.	RUĐERA BOŠKOVIĆA 16, 21000 SPLIT, HRVAŠKA	78,353	3.76%
5 VIZIJA HOLDING, K.D.D.	DUNAJSKA CESTA 156, 1000 LJUBLJANA	71,676	3.44%
6 VIZIJA HOLDING ENA, K.D.D.	DUNAJSKA CESTA 156, 1000 LJUBLJANA	63,620	3.05%
7 NLB D.D.	TRG REPUBLIKE 2, 1000 LJUBLJANA	63,183	3.03%
8 NOVA KBM D.D.	ULICA VITA KRAIGHERJA 4, 2000 MARIBOR	42,985	2.06%
9 PERSPEKTIVA FT D.O.O.	DUNAJSKA CESTA 156, 1000 LJUBLJANA	36,162	1.73%
10 DUTB, D. D.	DAVČNA ULICA 1, 1000 LJUBLJANA	36,000	1.73%

Table 6: Shares owned by members of the Supervisory and Management Board as at 30 September 2016

Name and Surname	Position	No. of shares	Share of equity
Supervisory board		0	0.0000%
Internal members		0	0.0000%
1. Zoran Gračner	Supervisory Board Member	0	0.0000%
2. Andrej Tomplak	Supervisory Board Member	0	0.0000%
3. Damjan Legen	Supervisory Board Member	0	0.0000%
External members		0	0.0000%
1. Tomaž Kuntarič	Supervisory Board President	0	0.0000%
2. Irena Prijović	Supervisory Board Vice-president	0	0.0000%
3. Igo Gruden	Supervisory Board Member	0	0.0000%
4. Matija Blažič	Supervisory Board Member	0	0.0000%
5. Klemen Ferjančič	Supervisory Board Member	0	0.0000%
6. Mladen Kaliterna	Supervisory Board Member	0	0.0000%
Management Board		220	0.0105%
1. Tomaž Berločnik	Management Board President	0	0.0000%
2. Igor Stebernak	Management Board Member	0	0.0000%
3. Rok Vodnik	Management Board Member	220	0.0105%
4. Ika Krevzel Panić	Management Board Member/Worker Director	0	0.0000%

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Contingent increase in share capital

In the period up to 30 September 2016, the General Meeting of Petrol d.d., Ljubljana did not adopt any resolutions regarding the contingent increase in share capital.

Dividends

In accordance with a resolution of the 26th General Meeting held on 21 April 2016, Petrol d.d., Ljubljana paid 2015 gross dividends of EUR 12.60 per share in August 2016. The gross dividend per share for 2014, which was paid in 2015, stood at EUR 11.70.

Own shares

Petrol d.d., Ljubljana did not repurchase its own shares in the first nine months of 2016. As at 30 September 2016, the Company held 24,703 own shares, representing 1.2 percent of its registered share capital. The total cost of own shares equalled EUR 2.6 million as at 30 September 2016 and was EUR 4.9 million lower than their market value on the said date.

Own shares, in total 36,142, were purchased between 1997 and 1999. The Company may acquire own shares only for the purposes laid down in Article 247 of the Companies Act (ZGD-1) and as remuneration to the Management Board and the Supervisory Board. Own shares are used in accordance with the Company's Articles of Association.

Regular participation at investors' conferences and external communication

Petrol d.d., Ljubljana has set up a programme of regular cooperation with domestic and foreign investors, which consists of public announcements, individual meetings and presentations, and public presentations. The Company regularly attends investors' conferences that are organised each year by stock exchanges, banks and brokerage companies. In the first nine months of 2016, several individual meetings were held with investors and analysts. In March, we attended an investors' conference in London organised by InterCapital and Goldman Sachs. In May, we participated in a joint investors' conference in Zagreb, which was organised by Ljubljana and Zagreb Stock Exchanges.

General Meeting of Petrol d.d., Ljubljana

At the 26th General Meeting of Petrol d.d., Ljubljana held on 21 April 2016, the following resolutions were adopted:

− Accumulated profit of EUR 25,976,135.00 as at 31 December 2015 shall be used as follows: EUR 25,976,134.80 shall be used to pay gross dividends of EUR 12.60 per share (own shares excluded) and EUR 0.20 shall be transferred to retained earnings. The dividends are to be paid out of the 2015 net profit and other revenue reserves for 2006. The Company shall pay the dividends on 12 August 2016 to shareholders registered with KDD – the Central Securities Clearing Corporation on 26 April 2016, as laid down in a Management Board decision.

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− The Company's Management Board shall be granted discharge from liability for the year 2015.
− The Company's Supervisory Board shall be granted discharge from liability for the year 2015.
− The audit firm ERNST & YOUNG Revizija, poslovno svetovanje, d.o.o., Ljubljana shall be appointed auditor for the year 2016.

Management Board of Petrol d.d., Ljubljana

The president of the Management Board, Tomaž Berločnik, MSc, began his new term of office on 1 February 2016. The terms of office of the other two legal representatives, Igor Stebernak and Rok Vodnik, MSc, were aligned with that of Mr Berločnik. The terms of office of all three legal representatives now run from 1 February 2016 to 31 January 2021.

Supervisory Board of Petrol d.d., Ljubljana

The Workers' Council of Petrol d.d., Ljubljana elected Damjan Legen as replacement Supervisory Board member representing employees for the term of office beginning on 28 January 2016 and ending on 21 February 2017.

Credit rating

On 24 June 2016, Standard & Poor's Ratings Services affirmed Petrol d.d., Ljubljana's "BBB- " long-term credit rating, its "A-3" short-term credit rating and its "stable" credit rating outlook. Disposal of an interest in the company GEN-I

In accordance with a strategy adopted by Petrol d.d., Ljubljana, a contract was signed on 22 June 2016 to dispose of 50 percent of interests held by the subsidiary IGES d.o.o. in the company GEN-I, d.o.o. The interests were then acquired by the company GEN-EL d.o.o. for EUR 45,100,000. The transaction will be carried out in two parts: the first part is expected to be completed by the end of 2016, following the fulfilment of suspensive conditions, and the second part by the end of June 2018.

Events after the end of the accounting period

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FINANCIAL REPORT

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Financial performance of the Petrol Group and the company Petrol d.d., Ljubljana

Statement of profit and loss of the Petrol Group and Petrol d.d., Ljubljana

		The Petrol Group		Petrol d.d.
(in EUR)	Note	1-9 2016	1-9 2015	1-9 2016	1-9 2015
Sales revenue		2,709,502,257	2,843,100,898	2,201,065,898	2,284,625,904
- of which excise duty		797,008,698	765,311,967	558,772,746	520,358,056
Cost of goods sold		(2,427,011,170)	(2,585,930,496)	(1,994,187,376)	(2,094,870,974)
Gross profit		282,491,087	257,170,402	206,878,521	189,754,930
Costs of materials	3	(19,562,103)	(20,233,696)	(10,921,832)	(10,372,955)
Costs of services	4	(90,679,590)	(85,559,397)	(73,698,821)	(72,563,719)
Labour costs	5	(50,314,479)	(48,254,630)	(34,346,458)	(31,685,569)
Depreciation and amortisation	6	(34,030,417)	(33,881,370)	(23,478,332)	(23,831,056)
Other costs	7	(14,452,579)	(3,156,538)	(12,988,393)	(1,821,114)
Operating costs		(209,039,168)	(191,085,631)	(155,433,835)	(140,274,413)
Other revenue	2	3,774,447	3,466,507	2,834,586	2,279,502
Other expenses		(226,288)	(229,937)	(61,395)	(95,398)
Operating profit		77,000,078	69,321,341	54,217,876	51,664,621
Share of profit or loss of equity accounted investees		4,154,819	8,003,780	-	-
Finance income from dividends paid by subsidiaries,
associates and jointly controlled entities		-	-	2,876,368	2,551,562
Other finance income	8	29,954,009	40,589,628	25,020,150	34,113,928
Other finance expenses	8	(38,698,101)	(59,287,244)	(33,909,403)	(49,652,031)
Net finance expense		(8,744,092)	(18,697,616)	(8,889,253)	(15,538,103)
Profit before tax		72,410,805	58,627,505	48,204,991	38,678,079
Tax expense		(10,502,428)	(6,330,806)	(4,590,959)	(3,164,189)
Deferred tax		(4,699,761)	(3,804,677)	(4,894,662)	(3,473,192)
Corporate income tax		(15,202,189)	(10,135,483)	(9,485,620)	(6,637,381)
Net profit for the period		57,208,616	48,492,022	38,719,371	32,040,698
Net profit for the period attributable to:
Owners of the controlling company		57,020,390	48,693,361	38,719,371	32,040,698
Non-controlling interest		188,226	(201,339)	-	-
Basic and diluted earnings per share	9	27.75	23.52	18.78	15.54

Accounting policies and notes are an integral part of these financial statements and should be read in conjunction with them.

Other comprehensive income of the Petrol Group and Petrol d.d., Ljubljana

	The Petrol Group		Petrol d.d.
(in EUR)	1-9 2016	1-9 2015	1-9 2016	1-9 2015

Net profit for the period	57,208,616	48,492,022	38,719,371	32,040,698

Attribution of changes in the equity of associates	( 23,647)	0	-	-
Change due to merger by absorption	-	-	2,318,999	1,785,294
Effective portion of changes in the fair value of cash flow
variability hedging	285,253	1,023,452	0	839,224
Change in deferred taxes	(70,784)	(179,514)	0	(142,668)
Foreign exchange differences	1,537,773	471,303	-	-
Other comprehensive income to be recognised in the
statement of profit or loss in the future	1,728,595	1,315,241	2,318,999	2,481,851
Other comprehensive income not to be recognised in
the statement of profit or loss in the future	0	0	0	0
Total other comprehensive income after tax	1,728,595	1,315,241	2,318,999	2,481,851
Total comprehensive income for the period	58,937,211	49,807,263	41,038,370	34,522,549

Total comprehensive income attributable to:
Owners of the controlling company	58,781,820	50,007,430	41,038,370	34,522,549
Non-controlling interest	155,391	(200,167)	-	-

Accounting policies and notes are an integral part of these financial statements and should be read in conjunction with them.

Statement of financial position of the Petrol Group and Petrol d.d., Ljubljana

		The Petrol Group		Petrol d.d.
		30 September	31 December	30 September	31 December
(in EUR)	Note	2016	2015	2016	2015
ASSETS
Non-current (long-term) assets
Intangible assets	10	182,069,320	184,394,946	147,378,416	150,091,485
Property, plant and equipment	11	605,779,238	604,065,712	304,198,345	326,949,002
Investment property		19,385,308	16,678,739	18,518,200	16,429,618
Investments in subsidiaries	12	-	-	295,001,498	286,097,454
Investments in jointly controlled entities	13	48,379,426	50,451,020	2,512,140	2,512,140
Investments in associates	14	117,933,863	117,494,379	52,852,540	53,206,341
Financial assets available-for-sale	15	2,850,989	1,764,945	2,771,945	1,685,902
Financial receivables		4,773,277	5,509,008	29,962,752	15,794,952
Operating receivables		228,733	918,241	221,667	918,240
Deferred tax assets		11,709,358	16,487,716	11,252,018	16,122,095
		993,109,512	997,764,706	864,669,522	869,807,231

Current assets
Inventories	16	84,797,203	91,482,068	68,368,564	72,764,397
Financial receivables	17	5,548,755	8,325,710	18,638,157	12,880,885
Operating receivables	18	301,297,482	324,155,308	234,052,537	249,882,742
Corporate income tax assets		94,798	245,045	0	0
Financial assets at fair value through profit or loss	19	623,245	2,295,710	623,245	2,295,710
Prepayments and other assets	20	19,423,295	15,774,900	15,101,457	10,990,970
Cash and cash equivalents		24,228,374	34,350,350	10,145,269	26,994,577
		436,013,152	476,629,091	346,929,228	375,809,280
Total assets		1,429,122,664	1,474,393,797	1,211,598,750	1,245,616,511

EQUITY AND LIABILITIES
Equity attributable to owners of the controlling company
Called-up capital		52,240,977	52,240,977	52,240,977	52,240,977
Capital surplus		80,991,385	80,991,385	80,991,385	80,991,385
Legal reserves		61,987,955	61,987,955	61,749,884	61,749,884
Reserves for own shares		2,604,670	2,604,670	2,604,670	2,604,670
Own shares		(2,604,670)	(2,604,670)	(2,604,670)	(2,604,670)
Other revenue reserves		169,855,432	180,794,332	169,272,572	177,892,472
Fair value reserve		183,267	206,914	40,187,257	40,187,257
Hedging reserve		(529,295)	(743,764)	0	0
Foreign exchange differences		(9,242,139)	(10,812,747)	-	-
Retained earnings		226,587,745	184,604,590	38,719,371	15,037,235
		582,075,327	549,269,642	443,161,447	428,099,211
Non-controlling interest		(948,491)	(1,878,984)	-	-
Total equity		581,126,836	547,390,658	443,161,447	428,099,211
Non-current liabilities
Provisions for employee post-employment and other long
term benefits		6,358,498	5,881,531	5,410,251	4,691,466
Other provisions		3,457,292	3,493,578	2,706,595	2,706,595
Long-term deferred revenue		5,156,489	6,051,115	4,961,135	5,997,724
Financial liabilities	21	340,459,457	415,560,980	282,049,859	345,975,338
Operating liabilities		1,005,132	1,030,182	1,005,132	1,030,182
Deferred tax liabilities		4,562,161	4,619,372	0	0
		360,999,029	436,636,758	296,132,973	360,401,305

Current liabilities
Financial liabilities	21	117,641,079	69,880,761	175,020,075	107,964,350
Operating liabilities	22	346,886,736	402,884,888	283,403,156	337,119,503
Corporate income tax liabilities		5,830,286	1,711,855	2,119,849	711,685
Other liabilities	23	16,638,698	15,888,877	11,761,251	11,320,457
		486,996,799	490,366,381	472,304,330	457,115,995
Total liabilities		847,995,828	927,003,139	768,437,303	817,517,300
Total equity and liabilities		1,429,122,664	1,474,393,797	1,211,598,750	1,245,616,511

Accounting policies and notes are an integral part of these financial statements and should be read in conjunction with them.

Entered into the Companies Register of the District Court of Ljubljana; Company Registration Number: 5025796000; Share capital: EUR 52,240,977.04, VAT ID: SI80267432 33/59

Report on the operations of the Petrol Group and the company Petrol d.d., Ljubljana in the first nine months of 2016

Statement of changes in equity of the Petrol Group

											Equ ity attr ibut able to
				Rev enu e re	serv es				For eign		of t he own ers
	Cal led- up			Res es f erv or		Oth er r eve nue	Fair val ue	Hed gin g	han exc ge	Ret aine d	trol ling con	Non ntro lling -co
(in E UR)	ital cap	Cap ital plus sur	Leg al re serv es	sha own res	Own sha res	rese rves	rese rve	rese rve	diff eren ces	ings earn	com pan y	inte rest	Tot al

As a t 1 J 201 5 anu ary Divi den d pa nts f or 2 014	52,2 40,9 77	80,9 91,3 85	61,9 87,9 55	2,60 4,67 0	70) (2,6 04,6	169, 324 ,875 (3,5 67,7 78)	759 ,718	10) (2,1 68,6	) (10, 965 ,203	154, 661 ,964 (20, 552 ,919	506 ,833 ,061 ) (24, 120 ,697 )	(3,5 84) 75,6	503 ,257 ,377 (24, 120 ,697 )
yme Tra ctio ith o nsa ns w wne rs	0	0	0	0	0	78) (3,5 67,7	0	0	0	) (20, 552 ,919	) (24, 120 ,697	0	(24, 120 ,697 )

prof it fo Net r the iod per										48,6 93,3 61	48,6 93,3 61	(201 ) ,339	48,4 92,0 22
Oth hang es i her pehe nsiv e in n ot er c com com e								843 ,938	470 ,131		1,31 4,06 9	1,17 2	5,24 1,31 1

Tot al c han in t ota l co rehe nsiv e in ges mp com e	0	0	0	0	0	0	0	843 ,938	470 ,131	48,6 93,3 61	50,0 07,4 30	) (200 ,167	49,8 07,2 63

Sep As a t 30 tem ber 201 5	52,2 40,9 77	80,9 91,3 85	61,9 87,9 55	2,60 4,67 0	70) (2,6 04,6	165, 757 ,097	759 ,718	72) (1,3 24,6	) (10, 495 ,072	182, 802 ,406	532 ,719 ,794	51) (3,7 75,8	528 ,943 ,943

As a t 1 J 201 6 anu ary Divi den d pa nts f or 2 015	52,2 40,9 77	80,9 91,3 85	61,9 87,9 55	2,60 4,67 0	70) (2,6 04,6	180, 794 ,332 (10, 938 ,900 )	206 ,914	) (743 ,764	) (10, 812 ,747	184, 604 ,590 (15, 037 ,235	549 ,269 ,642 ) (25, 976 ,135 )	(1,8 78,9 84)	547 ,390 ,658 (25, 976 ,135 )
yme Incr e in rolli												775
ng i cont nter est eas non- Tra ctio ith o nsa ns w wne rs	0	0	0	0	0	) (10, 938 ,900	0	0	0	) (15, 037 ,235	0 ) (25, 976 ,135	,102 775 ,102	775 ,102 (25, 201 ,033 )

Net prof it fo r the iod per										57,0 20,3 90	57,0 20,3 90	188 ,226	57,2 08,6 16
Oth hang es i her pehe nsiv e in n ot er c com com e							(23, 647 )	214 ,469	1,57 0,60 8		1,76 1,43 0	(32, 835 )	1,72 8,59 5

Tot al c han in t ota l co rehe nsiv e in ges mp com e	0	0	0	0	0	0	(2 7) 3,64	214 ,469	1,57 0,60 8	57,0 20,3 90	58,7 81,8 20	1 55,3 91	58,9 37,2 11
As a t 30 Sep tem ber 201 6	52,2 40,9 77	80,9 91,3 85	61,9 87,9 55	2,60 4,67 0	70) (2,6 04,6	169, 855 ,432	183 ,267	) (529 ,295	39) (9,2 42,1	226 ,587 ,745	582 ,075 ,327	) (948 ,491	581 ,126 ,836

Accounting policies and notes are an integral part of these financial statements and should be read in conjunction with them.

Entered into the Companies Register of the District Court of Ljubljana; Company Registration Number: 5025796000; Share capital: EUR 52,240,977.04, VAT ID: SI80267432 34/59 Report on the operations of the Petrol Group and the company Petrol d.d., Ljubljana in the first nine months of 2016

Statement of changes in equity of Petrol d.d., Ljubljana

				Rev enu e re	serv es
	Cal led- up			Res es f erv or		Oth er r eve nue	Fair lue va	Hed gin g	Ret aine d
(in E UR )	ital cap	Cap ital plu sur s	Leg al re serv es	sh own ares	Ow n sh ares	rese rve s	rese rve	rese rve	nin ear gs	Tot al

As a t 1 J 201 5 anu ary	52,2 40,9 77	80,9 91,3 85	61,7 49,8 84	2,60 4,67 0	70) (2,6 04,6	164 ,637 ,720	40,7 40,0 61	37) (1,1 49,4	20,5 52,9 19	,508 419 ,763
Divi den d pa nts for 201 4 yme						(3,5 67,7 78)			(20 ,552 ,919 )	(24 ,120 ,697 )
Tra ctio ith nsa ns w own ers	0	0	0	0	0	78) (3,5 67,7	0	0	) (20 ,552 ,919	(24 ,120 ,697 )
Net fit fo r the iod pro per									32,0 40,6 98	32,0 40,6 98
Oth han in o ther peh ive i er c ges com ens nco me						1,78 5,29 4		696 ,557		2,48 1,85 1
Tot al c han in tota l co reh ive inco ges mp ens me	0	0	0	0	0	1,78 5,29 4	0	696 ,557	32,0 40,6 98	34,5 22,5 49
As a t 30 Se mb er 2 015 pte	52,2 40,9 77	80,9 91,3 85	61,7 49,8 84	2,60 4,67 0	70) (2,6 04,6	162 ,855 ,237	40,7 40,0 61	) (452 ,881	32,0 40,6 98	430 ,165 ,361
As a t 1 J 201 6 anu ary	52,2 40,9 77	80,9 91,3 85	61,7 49,8 84	2,60 4,67 0	70) (2,6 04,6	177 ,892 ,472	40,1 87,2 57	0	15,0 37,2 35	428 ,099 ,211
Divi den d pa for nts 201 5 yme						(10 ) ,938 ,900			(15 ) ,037 ,235	(25 ,976 ,135 )
Tra ctio ith nsa ns w own ers	0	0	0	0	0	) (10 ,938 ,900	0	0	) (15 ,037 ,235	(25 ,976 ,135 )
Net fit fo r the iod pro per									38,7 19,3 71	38,7 19,3 71
Oth han in o ther peh ive i er c ges com ens nco me						2,31 8,99 9				2,31 8,99 9
in ive inco Tot al c han tota l co reh ges mp ens me	0	0	0	0	0	2,31 8,99 9	0	0	38,7 19,3 71	41,0 38,3 70
As a t 30 Se pte mb er 2 016	52,2 40,9 77	80,9 91,3 85	61,7 49,8 84	2,60 4,67 0	70) (2,6 04,6	169 ,272 ,572	40,1 87,2 57	0	38,7 19,3 71	443 ,161 ,447

Accounting policies and notes are an integral part of these financial statements and should be read in conjunction with them.

Entered into the Companies Register of the District Court of Ljubljana; Company Registration Number: 5025796000; Share capital: EUR 52,240,977.04, VAT ID: SI80267432 35/59

Cash flow statement of the Petrol Group and Petrol d.d., Ljubljana

	The Petrol Group		Petrol d.d.
	30 September	30 September	30 September	30 September
(in EUR)	2016	2015	2016	2015
Cash flows from operating activities

Net profit Adjustment for:	57,208,616	48,492,022	38,719,371	32,040,698
Corporate income tax	15,202,189	10,135,483	9,485,620	6,637,381
Depreciation of property, plant and equipment and of investment property	29,131,586	29,253,351	19,384,960	20,015,947
Amortisation of intangible assets	4,898,831	4,628,019	4,093,372	3,815,110
(Gain)/loss on disposal of property, plant and equipment	(382,568)	105,375	(326,512)	146,311
Impairment, write-down/(reversed impairment) of assets	11,568,332	103,986	11,568,332	32,565
Revenue from assets under management	(49,050)	(49,050)	(49,050)	(49,050)
Net (decrease in)/creation of provisions for employee post-employment
and other long-term benefits	473,982	690	500,000	0
Net (decrease in)/creation of other provisions and long-term deferred
revenue	(1,076,430)	(314,573)	(1,036,589)	(293,962)
Net goods shortages	895,575	(202,228)	1,049,101	(34,985)
Net (decrease in)/creation of allowance for receivables	(37,709)	4,407,142	(46,056)	2,449,124
Net finance (income)/expense	11,122,331	15,072,080	10,879,881	13,680,998
Share of profit of jointly controlled entities	(78,406)	(2,427,462)	-	-
Share of profit of associates	(4,076,413)	(5,576,318)	-	-
Finance income from dividends received from subsidiaries	-	-	0	(102,571)
Finance income from dividends received from joint contolled entities	-	-	(150,000)	(150,000)
Finance income from dividends received from associates	-	-	(2,726,368)	(2,298,990)
Cash flow from operating activities berfore the changes in
working capital	124,800,866	103,628,517	91,346,062	75,888,576

Net (decrease in)/creation of other liabilities	723,079	(1,082,179)	364,499	(2,760,828)
Net decrease in/(creation of) other assets	(2,950,290)	(1,627,475)	(3,452,810)	(2,528,452)
Change in inventories	5,859,732	18,951,091	3,278,400	21,531,381
Change in operating and other receivables	35,623,030	36,387,099	22,648,584	52,387,514
Change in operating and other liabilities	(63,393,101)	(23,810,783)	(52,315,876)	(30,052,072)

Cash generated from operating activities	100,663,316	132,446,270	61,868,859	114,466,122

Interest paid	(13,868,494)	(16,992,913)	(12,424,300)	(15,058,829)
Taxes paid	(4,876,586)	(5,265,669)	(3,213,959)	(4,137,887)
Net cash from (used in) operating activities	81,918,236	110,187,688	46,230,600	95,269,406

Cash flows from investing activities
Payments for investments in subsidiaries	(39,138)	0	(9,659,623)	(17,198,281)
Receipts from investments in subsidiaries	802,352	0	27,352	0
Payments for investments in jointly controlled entities	0	(1)	0	(1)
Payments for investments in associates	(2,500)	(11,963,444)	0	0
Receipts from investments in associates	2,850,000	0	2,850,000	0
Receipts from intangible assets	295,568	90,872	0	0
Payments for intangible assets	(2,033,490)	(6,787,085)	(1,380,303)	(5,903,077)
Receipts from property, plant and equipment	4,054,985	480,896	2,059,371	400,463
Payments for property, plant and equipment	(54,751,7 25)	(23,644,556)	(20,935,053)	(15,837,140)
Receipts from financial assets available-for-sale	77,646	254,026	77,646	254,026
Payments for financial assets available-for-sale	(1 ,163,555)	(119,760)	(1,163,555)	(119,760)
Receipts from financial assets held for trading	0	1,648,209	0	1,648,050
Receipts from loans granted	7,908,933	13,958,780	26,433,665	20,853,272
Payments for loans granted	(4,221,548)	(13,457,649)	(46,577,463)	(17,021,063)
Interest received	2,827,311	3,347,578	2,696,651	2,919,396
Dividends received from subsidiaries	-	-	0	102,571
Dividends received from jointly controlled entities	2,150,000	1,900,000	150,000	150,000
Dividends received from associates Dividends received from others	3,215,883 0	2,698,577 37,155	2,726,368 0	2,298,990 37,155

Net cash from (used in) investing activities	(38,029 ,278)	(31,556,402)	(42,694,943)	(27,415,399)
Cash flows from financing activities
Proceeds from bonds issued	715,354	711,301	715,354	711,301

Payments for bonds issued	(21,262,000)	0	(21,262,000)	0
Proceeds from borrowings	533,237,105	365,215,792	741,692,165	621,566,387
Repayment of borrowings	(540,904,925)	(397,068,917)	(716,454,669)	(666,264,179)
Dividends paid to shareholders	(25,873,421)	(24,002,604)	(25,873,421)	(24,002,604)
Net cash from (used in) financing activities	(54,087 ,887)	(55,144,428)	(21,182,571)	(67,989,095)

Increase/(decrease) in cash and cash equivalents	(10,198,929)	23,486,858	(17,646,914)	(135,088)
Changes in cash and cash equivalents

At the beginning of the year	34,350,350	58,573,381	26,994,577	52,592,296
Foreign exchange differences	49,284	(69,710)	0	0
Cash acquired through mergers by absorption	0	0	797,606	0
Cash acquired through acquisition of companies	27,669	664,051	0	0
Increase/(decrease)	(10,198,929)	23,486,858	(17,646,914)	(135,088)
At the end of the period	24,228,374	82,654,580	10,145,269	52,457,208

Accounting policies and notes are an integral part of these financial statements and should be read in conjunction with them.

Entered into the Companies Register of the District Court of Ljubljana; Company Registration Number: 5025796000; Share capital: EUR 52,240,977.04, VAT ID: SI80267432 36/59

Notes to the financial statements

Reporting entity

Petrol d.d., Ljubljana (hereinafter the "Company") is a company domiciled in Slovenia. The address of the Company's registered office is Dunajska cesta 50, 1527 Ljubljana. Below we present consolidated financial statements of the Group for the period ended 30 September 2016 and separate financial statements of the company Petrol d.d., Ljubljana for the period ended 30 September 2016. The consolidated financial statements comprise the Company and its subsidiaries and the Group's interests in associates and jointly controlled entities (together referred to as the "Group"). A more detailed overview of the Group's structure is presented in the chapter Organisational structure of the Petrol Group in Appendix 1 of this report.

Basis of preparation

a. Statement of compliance

The Company's management approved the Company's financial statements and the Group's consolidated financial statements on 7 November 2016.

The financial statements of Petrol d.d., Ljubljana and consolidated financial statements of the Petrol Group have been prepared in accordance with IAS 34 – Interim financial reporting and should be read in conjunction with the Group's annual financial statements as at 31 December 2015.

The financial statements for the period from January – September 2016 are prepared based on the same accounting policies used for the preparation of financial statements for the year ended 31 December 2015.

b. Basis of measurement

The consolidated and separate financial statements have been prepared on the historical cost basis except for the following assets and liabilities that are carried at fair value:

derivative financial instruments,
financial assets at fair value through profit or loss,
financial assets available-for-sale.

c. Functional and presentation currency

These financial statements are presented in euros (EUR) without cents, the euro also being the Company's functional currency. Due to rounding, some immaterial differences may arise as concerns the sums presented in tables.

d. Use of estimates and judgements

Preparation of financial statements requires management to make estimates, judgements and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities on the date of financial statements, and the reported amounts of revenue and expenses in the reporting period.

Estimates and assumptions are used in the following judgements:

estimating useful lives of depreciable assets,

Report on the operations of the Petrol Group and the company Petrol d.d., Ljubljana in the first nine months of 2016

estimating the fair value of financial assets available-for-sale,
estimating the fair value of financial assets at fair value through profit or loss,
estimating the fair value of derivative financial instruments,
estimating the influence in jointly controlled entities,
estimating the provisions for litigation,
estimating the provisions for employee post-employment and other long-term benefits,
asset impairment testing (investment property, goodwill, investments in subsidiaries, investments in jointly controlled entities and associates, financial assets available-forsale, financial receivables, inventories)
assessing the possibility of using deferred tax assets, etc.

Because estimates are subject to subjective judgments and a certain degree of uncertainty, actual results might differ from the estimates.

Estimates are reviewed regularly. Changes in accounting estimates are recognised in the period in which the estimates are changed if a change affects that period only. If a change affects future periods, they are recognised in the period of the change and in any future periods.

Notes to individual items in the financial statements

1. Segment reporting

Because the financial report consists of the financial statements and the accompanying notes of the Group as well as of the Company, only the Group's operating segments have been disclosed.

An operating segment is a component of the Group that engages in business activities from which it earns revenues and incurs expenses that relate to transactions with any of the Group's other components. The operating results of operating segments are reviewed regularly by the management to make decisions about resources to be allocated to a segment and assess the performance of the Group.

The management monitors information on two levels: on the micro level, in which case individual units are monitored, and on the macro level, where information is monitored only in terms of certain key information that can be used to make comparisons with similar companies in Europe. Given the enormous amount of information and their sensitivity on the micro level, the Group only discloses macro-level information in its annual report.

The Group thus uses the following segments in the preparation and presentation of the financial statements:

sales,
energy and environmental systems.

Sales consist of:

retail and wholesale of oil and petroleum products,
retail and wholesale of merchandise,
sales of liquefied petroleum gas (LPG),
sales of natural gas,
sales of electricity,
trading with electricity and natural gas.

Entered into the Companies Register of the District Court of Ljubljana; Company Registration Number: 5025796000; Share capital: EUR 52,240,977.04, VAT ID: SI80267432 38/59

Energy and environmental systems consist of:

distribution of natural gas,
other services (energy solutions, environmental solutions, biomass production, district heating, generation of electricity).

The Group's operating segments in the period 1-9 2015:

		Energy and environmental		Statement of profit or loss/ Statement of financial
(in EUR)	Sales	systems	Total	position
Sales revenue	3,163,600,871	37,707,566	3,201,308,437
Revenue from subsidiaries	(357,697,465)	(510,074)	(358,207,539)
Sales revenue	2,805,903,406	37,197,492	2,843,100,898	2,843,100,898
Net profit for the year	47,740,016	752,006	48,492,022	48,492,022
Interest income *	2,457,868	680,228	3,138,096	3,138,096
Interest expense *	(12,693,595)	(3,513,017)	(16,206,612)	(16,206,612)
Depreciation of property, plant and equipment, depreciation
of investment property, amortisation of intangible assets	(26,277,468)	(7,603,902)	(33,881,370)	(33,881,370)
Share of profit of equity accounted investees	5,362,619	2,641,161	8,003,780	8,003,780
Total assets	1,307,839,457	215,875,786	1,523,715,243	1,523,715,243
Equity accounted investments	119,505,999	48,865,913	168,371,912	168,371,912
Property, plant and equipment, intangible assets and
investment property	636,276,719	160,300,834	796,577,553	796,577,553
Other assets	552,056,738	6,709,040	558,765,778	558,765,778
Current and non-current operating and financial liabilities	822,903,239	135,830,803	958,734,042	958,734,042

* Interest income and expenses are estimated based on a segment's share of investments and assets in total investments and assets.

The Group's operating segments in the period 1-9 2016:

			Statement of profit or loss/
	Energy and		Statement of
	environmental		financial
Sales	systems	Total	position



			2,709,502,257
			57,208,616
			2,865,779
			(14,083,270)

(26,001,506)	(8,028,911)	(34,030,417)	(34,030,417)
2,008,487	2,146,332	4,154,819	4,154,819
1,206,349,836	222,772,828	1,429,122,664	1,429,122,664
117,070,503	49,242,786	166,313,289	166,313,289

639,734,450	167,499,416	807,233,866	807,233,866
449,544,883	6,030,626	455,575,509	455,575,509
680,353,639	125,638,765	805,992,404	805,992,404
	2,980,342,835 (308,834,389) 2,671,508,447 54,087,249 2,227,767 Depreciation of property, plant and equipment, depreciation	38,292,980 (299,169) 37,993,810 3,121,367 638,012 (10,947,891) (3,135,379)	3,018,635,815 (309,133,558) 2,709,502,257 57,208,616 2,865,779 (14,083,270)

* Interest income and expenses are estimated based on a segment's share of investments and assets in total investments and assets.

Report on the operations of the Petrol Group and the company Petrol d.d., Ljubljana in the first nine months of 2016

2. Other revenue

	The Petrol Group		Petrol d.d.
(in EUR)	1-9 2016	1-9 2015	1-9 2016	1-9 2015

Utilisation of environmental provisions	992,210	1,044,755	986,881	1,044,755
Gain on disposal of fixed assets	585,305	129,504	440,198	82,929
Compensation, litigation proceeds and contractual penalties
received	489,314	233,743	424,835	52,016
Reversal of accrued costs, expenses	351,234	317,867	281,195	115,593
Compensation received from insurance companies	275,525	113,913	116,328	52,070
Other revenue	1,080,859	1,626,725	585,149	932,139
Total other revenue	3,774,447	3,466,507	2,834,586	2,279,502

3. Costs of material

	The Petrol Group		Petrol d.d.
(in EUR)	1-9 2016	1-9 2015	1-9 2016	1-9 2015

Costs of energy	13,279,003	13,589,385	6,165,228	4,759,066
Costs of consumables	5,627,116	6,091,294	4,429,491	5,306,202
Write-off of small tools	218,744	139,871	39,264	42,730
Other costs of materials	437,240	413,146	287,849	264,957

Total costs of materials	19,562,103	20,233,696	10,921,832	10,372,955

4. Costs of services

	The Petrol Group		Petrol d.d.
(in EUR)	1-9 2016	1-9 2015	1-9 2016	1-9 2015

Costs of service station managers	23,162,883	21,783,747	23,162,883	22,206,653
Costs of transport services	20,558,928	19,930,069	17,558,879	17,815,753
Costs of fixed-asset maintenance services	8,677,168	7,643,113	6,344,847	7,132,598
Lease payments	7,056,117	6,495,444	2,798,773	2,618,269
Costs of professional services	5,243,772	4,739,414	4,905,973	4,180,379
Costs of payment transactions and bank services	4,995,520	5,913,504	3,707,474	4,395,629
Contributions for operations at motorway service areas	4,028,826	3,864,437	3,007,815	2,949,067
Costs of fairs, advertising and entertainment	3,892,630	2,789,228	2,934,416	2,100,835
Costs of insurance premiums	2,777,076	3,079,531	1,858,805	2,200,935
Costs of fire protection and physical and technical security	1,412,734	1,215,624	1,110,019	931,155
Fees for the building site use	1,327,716	1,358,375	1,212,605	1,241,032
Outsourcing costs	1,217,697	797,584	678,062	131,474
Costs of environmental protection services	1,008,480	1,293,067	624,829	940,987
Property management	985,797	851,837	1,017,094	1,130,046
Reimbursement of work-related costs to employees	658,955	610,005	325,564	355,972
Concession charges	628,563	619,828	378,648	333,951
Membership fees	247,987	303,317	162,644	160,094
Other costs of services	2,798,741	2,271,273	1,909,491	1,738,890

Total costs of services	90,679,590	85,559,397	73,698,821	72,563,719

Report on the operations of the Petrol Group and the company Petrol d.d., Ljubljana in the first nine months of 2016

5. Labour costs

	The Petrol Group		Petrol d.d.
(in EUR)	1-9 2016	1-9 2015	1-9 2016	1-9 2015

Salaries	35,900,525	34,410,238	24,217,858	22,519,251
Costs of other insurance	3,618,438	3,555,332	1,927,411	1,820,783
Costs of pension insurance	3,022,077	2,927,275	2,351,875	2,202,444
Transport allowance	1,841,022	1,764,202	1,116,468	1,036,645
Meal allowance	1,538,711	1,433,202	1,054,306	981,706
Annual leave allowance	1,298,593	1,252,563	962,145	869,668
Supplementary pension insurance	720,811	703,256	655,018	619,941
Other allowances and reimbursements	2,374,302	2,208,562	2,061,375	1,635,131
Total labour costs	50,314,479	48,254,630	34,346,458	31,685,569

6. Depreciation and amortisation

The Petrol Group		Petrol d.d.
1-9 2016	1-9 2015	1-9 2016	1-9 2015

4,898,831	4,628,019	4,093,372	3,815,110
28,316,368	28,692,220	18,602,486	19,433,420
815,218	561,131	782,474	582,526

34,030,417	33,881,370	23,478,332	23,831,056

7. Other costs

	The Petrol Group		Petrol d.d.
(in EUR)	1-9 2016	1-9 2015	1-9 2016	1-9 2015

Disposals/impairment of assets	11,771,069	234,879	11,682,018	229,240
Sponsorships and donations	1,158,045	1,126,426	1,082,254	1,063,265
Environmental charges and charges unrelated to operations	770,840	721,370	5,460	112,756
Other costs	752,625	1,073,863	218,661	415,853

Total other costs	14,452,579	3,156,538	12,988,393	1,821,114

8. Other financial income and expenses

The Petrol Group		Petrol d.d.
1-9 2016	1-9 2015	1-9 2016	1-9 2015

10,955,504	12,022,722	7,739,398	8,273,681
12,373,393	23,057,523	12,013,023	22,854,599
2,865,779	3,138,096	2,455,652	2,344,999
709,006	1,751,339	176,217	20,416
3,050,327	619,948	2,635,860	620,232

29,954,009	40,589,628	25,020,150	34,113,928

(7,938,003)	(22,803,329)	(5,235,306)	(19,272,982)
(13,380,233)	(12,690,377)	(12,572,541)	(12,062,642)
(14,083,270)	(16,206,612)	(13,370,619)	(14,442,925)
(671,297)	(6,158,478)	(130,194)	(2,469,827)
(2,625,298)	(1,428,448)	(2,600,743)	(1,403,655)

(38,698,101)	(59,287,244)	(33,909,403)	(49,652,031)

(8,744,092)		(8,889,253)	(15,538,103)
			(18,697,616)

Entered into the Companies Register of the District Court of Ljubljana; Company Registration Number: 5025796000; Share capital: EUR 52,240,977.04, VAT ID: SI80267432 41/59

9. Earnings per share

	The Petrol Group		Petrol d.d.
	30 September	30 September	30 September	30 September
(in EUR)	2016	2015	2016	2015

Net profit (in EUR)	57,208,616	48,492,022	38,719,371	32,040,698
Number of shares issued	2,086,301	2,086,301	2,086,301	2,086,301
Number of own shares at the beginning of the period	24,703	24,703	24,703	24,703
Number of own shares at the end of the period	24,703	24,703	24,703	24,703
Weighted average number of ordinary shares issued	2,061,598	2,061,598	2,061,598	2,061,598
Diluted average number of ordinary shares	2,061,598	2,061,598	2,061,598	2,061,598

Basic and diluted earnings per share (EUR/share)	27.75	23.52	18.78	15.54

Basic earnings per share are calculated by dividing the owners' net profit by the weighted average number of ordinary shares, excluding ordinary shares owned by the Company. The Group and the Company have no potential dilutive ordinary shares, so the basic and diluted earnings per share are identical.

10. Intangible assets

Intangible assets of the Petrol Group

		Right to use
		concession		Ongoing
(in EUR)	Software	infrastructure	Goodwill	investments	Total
Cost
As at 1 January 2015	15,181,030	93,066,746	106,326,905	2,133,952	216,708,633
New acquisitions	17,435	31	0	6,787,462	6,804,928
Disposals/Impairments	(12,927)	(120,976)	0	(70,474)	(204,377)
Transfer from ongoing investments	1,656,134	4,493,481	0	(6,149,615)	0
Foreign exchange differences	427	10,347	28,024	(110)	38,688
As at 30 September 2015	16,842,099	97,449,629	106,354,929	2,701,215	223,347,872

Accumulated amortisation
As at 1 January 2015	(7,842,119)	(28,195,383)	0	0	(36,037,502)
Amortisation	(1,619,908)	(3,008,112)	0	0	(4,628,020)
Disposals/Impairments	15,827	26,764	0	0	42,591
Foreign exchange differences	(296)	(1,487)	0	0	(1,783)
As at 30 September 2015	(9,446,496)	(31,178,218)	0		0 (40,624,715)

Net carrying amount as at 1 January 2015	7,338,911	64,871,363	106,326,905	2,133,952	180,671,131
Net carrying amount as at 30 September 2015	7,395,603	66,271,411	106,354,929	2,701,215	182,723,158

		Right to use
(in EUR)	Software	concession infrastructure	Goodwill	Ongoing investments	Total
Cost
As at 1 January 2016	17,558,277	100,766,397	106,364,856	2,784,983	227,474,513
New acquisitions as a result of control obtained	0	0	353,762	175,946	529,708
New acquisitions	0	0	0	2,033,490	2,033,490
Disposals/Impairments	(327,853)	(59,048)	0	(2,176)	(389,077)
Transfer from ongoing investments	1,274,758	2,419,744	0	(3,694,502)	0
Foreign exchange differences	401	123,983	210,466	2,558	337,408
As at 30 September 2016	18,505,583	103,251,076	106,929,084	1,300,299	229,986,042

Accumulated amortisation
As at 1 January 2016	(10,013,651)	(33,065,916)	0	0	(43,079,567)
Amortisation	(1,811,225)	(3,087,606)	0	0	(4,898,831)
Disposals/Impairments	93,509	0	0	0	93,509
Foreign exchange differences	(738)	(31,095)	0	0	(31,833)
As at 30 September 2016	(11,732,105)	(36,184,617)	0		0 (47,916,722)

Net carrying amount as at 1 January 2016	7,544,626	67,700,481	106,364,856	2,784,983	184,394,946

Net carrying amount as at 30 September 2016	6,773,478	67,066,459	106,929,084	1,300,299	182,069,320

Intangible assets of Petrol d.d., Ljubljana

		Right to use
		concession		Ongoing
(in EUR)	Software	infrastructure	Goodwill	investments	Total
Cost
As at 1 January 2015	14,542,073	72,057,793	85,614,936	2,056,000	174,270,802
New acquisitions as a result of merger by absorption	332,103	0	3,872,135	0	4,204,238
New acquisitions	17,355	0	0	5,885,722	5,903,077
Disposals/Impairments	(28,314)	(1,362)	0	0	(29,676)
Transfer from ongoing investments	1,612,544	3,663,817	0	(5,276,361)	0
As at 30 September 2015	16,475,761	75,720,248	89,487,071	2,665,361	184,348,442
Accumulated amortisation
As at 1 January 2015	(7,529,001)	(22,619,776)	0	0	(30,148,777)
New acquisitions as a result of merger by absorption	(84,385)	0	0	0	(84,385)
Amortisation	(1,593,230)	(2,221,880)	0	0	(3,815,110)
Disposals/Impairments	28,314	954	0	0	29,268
As at 30 September 2015		(9,178,302) (24,840,702)	0		0 (34,019,004)
Net carrying amount as at 1 January 2015	7,013,072	49,438,017	85,614,936	2,056,000	144,122,025
Net carrying amount as at 30 September 2015	7,297,459	50,879,546	89,487,071	2,665,361	150,329,437
		Right to use concession		Ongoing

(in EUR)	Software	infrastructure	Goodwill	investments	Total
Cost
As at 1 January 2016	17,195,771	76,884,824	89,487,071	2,777,483	186,345,149
New acquisitions as a result of merger by absorption	4,638	0	0	0	4,638
New acquisitions	0	0	0	1,614,647	1,614,647
Disposals/Impairments	(327,703)	0	0	0	(327,703)
Transfer from ongoing investments	999,705	2,279,447	0	( 3,279,152)	0
As at 30 September 2016	17,872,411	79,164,271	89,487,071	1,112,978	187,636,731
Accumulated amortisation
As at 1 January 2016	(9,738,942)	(26,514,722)	0	0	(36,253,664)
New acquisitions as a result of merger by absorption	(4,638)	0	0	0	(4,638)
Amortisation	(1,770,045)	(2,323,327)	0	0	(4,093,372)
Disposals/Impairments	93,359	0	0	0	93,359
As at 30 September 2016		(11,420,266) (28,838,049)	0		0 (40,258,315)
Net carrying amount as at 1 January 2016	7,456,829	50,370,102	89,487,071	2,777,483	150,091,485
Net carrying amount as at 30 September 2016	6,452,145	50,326,222	89,487,071	1,112,978	147,378,416

11. Property, plant and equipment

Property, plant and equipment of Petrol Group

					Ongoing
(in EUR)	Land	Buildings	Plant	Equipment	investments	Total
Cost
As at 1 January 2015	219,902,431	596,237,718	39,339,159	177,117,817		25,026,435 1,057,623,560
New acquistions	0	0	0	0	20,876,020	20,876,020
Disposals/Impairments	(92,295)	(253,784)	(336,256)	(2,676,020)	(306,066)	(3,664,421)
Transfer between assets categories	0	8,425,156	(8,425,156)	0	0	0
Transfer from ongoing investments	1,631,161	8,932,371	1,168,146	11,618,105	(23,349,783)	0
Transfer to investment property	(12)	(166,118)	0	0	0	(166,130)
Transfer from investment property	13,690	561,061	0	0	0	574,751
Foreign exchange differences	162,624	314,285	674	60,032	22,269	559,884
As at 30 September 2015	221,617,599	614,050,689	31,746,567	186,119,934		22,268,875 1,075,803,664

Accumulated depreciation
As at 1 January 2015		0 (316,805,561)		(16,050,331) (114,860,489)		0 (447,716,380)
Depreciation	0	(17,155,494)	(1,326,772)	(10,209,957)	0	(28,692,223)
Disposals/Impairments	0	198,407	328,288	2,468,337	0	2,995,032
Transfer between assets categories	0	(528,510)	528,510	0	0	0
Transfer to investment property	0	81,231	0	0	0	81,231
Transfer from investment property	0	(525,179)	0	0	0	(525,179)
Foreign exchange differences	0	(79,106)	(367)	(34,184)	0	(113,657)
As at 30 September 2015		0 (334,814,212) (16,520,672) (122,636,293)				0 (473,971,176)

Net carrying amount as at 1 January 2015	219,902,431	279,432,157	23,288,828	62,257,328	25,026,435	609,907,179

Net carrying amount as at 30 September 2015	221,617,599	279,236,477	15,225,895	63,483,641	22,268,875	601,832,487

					Ongoing
(in EUR)	Land	Buildings	Plant	Equipment	investments	Total
Cost
As at 1 January 2016	216,889,113	623,589,973	33,914,127	187,871,229		20,809,482 1,083,073,924
New acquistions as a result of control obtained	52,855	292,691	0	1,651,665	276,100	2,273,311
New acquistions	0	0	0	0	45,572,040	45,572,040
Disposals/Impairments	(12,566,104)	(2,915,366)	(44,944)	(4,599,218)	(239,231)	(20,364,863)
Transfer from ongoing investments	1,876,014	13,114,483	1,002,365	8,237,520	(24,230,382)	0
Transfer to investment property	(82,527)	(9,662,774)	0	0	0	(9,745,301)
Transfer from investment property	513,304	2,611,013	0	0	0	3,124,317
Foreign exchange differences	844,353	1,230,592	(1,247)	381,080	55,493	2,510,271
As at 30 September 2016	207,527,008	628,260,612	34,870,301	193,542,276		42,243,502 1,106,443,699

Accumulated depreciation
As at 1 January 2016		0 (340,685,347)		(16,767,864) (121,555,001)		0 (479,008,211)
New acquistions as a result of control obtained	0	(75 ,368)	0	(850,383)	0	(925,751)
Depreciation	0	(17,203,370)	(1,415,230)	(9,697,768)	0	(28,316,368)
Disposals/Impairments	0	1,193,398	44,944	3,953,498	0	5,191,840
Transfer to investment property	0	4,609,731	0	0	0	4,609,731
Transfer from investment property	0	(1,510,534)	0	0	0	(1,510,534)
Foreign exchange differences	0	(439,220)	1,145	(267,092)	0	(705,167)
As at 30 September 2016		0 (354,110,710) (18,137,005) (128,416,746)				0 (500,664,460)

Net carrying amount as at 1 January 2016	216,889,113	282,904,626	17,146,263	66,316,228	20,809,482	604,065,712

Net carrying amount as at 30 September 2016	207,527,008	274,149,902	16,733,296	65,125,530	42,243,502	605,779,238

Property, plant and equipment of Petrol d.d., Ljubljana

				Ongoing
(in EUR)	Land	Buildings	Equipment	investments	Total
Cost
As at 1 January 2015	115,656,507	462,082,217	151,350,681	18,170,031	747,259,436
New acquisitions as a result of merger by absorption	447,040	1,372,652	12,042,322	0	13,862,014
New acquisitions	0	0	7,398	9,682,846	9,690,244
Disposals/Impairments	(92,295)	(74,697)	(2,100,551)	(302,384)	(2,569,927)
Transfer from ongoing investments	837,850	6,018,421	9,590,173	(16,446,444)	0
Transfer to investment property	(12)	(166,117)	0	0	(166,129)
Transfer from investment property	13,690	561,061	0	0	574,751
As at 30 September 2015	116,862,780	469,793,537	170,890,023	11,104,049	768,650,389
Accumulated depreciation
As at 1 January 2015		0 (306,530,749) (110,918,237)			0 (417,448,986)
New acquisitions as a result of merger by absorption	0	(461,488)	(3,495,705)	0	(3,957,193)
Depreciation	0	(11,677,829)	(7,755,591)	0	(19,433,420)
Disposals/Impairments	0	62,521	1,960,885	0	2,023,406
Transfer to investment property	0	81,231	0	0	81,231
Transfer from investment property	0	(525,179)	0	0	(525,179)
As at 30 September 2015		0 (319,051,493) (120,208,648)			0 (439,260,141)

Net carrying amount as at 1 January 2015	115,656,507	155,551,468	40,432,444	18,170,031	329,810,450
Net carrying amount as at 30 September 2015	116,862,780	150,742,044	50,681,375	11,104,049	329,390,248



				Ongoing
(in EUR)	Land	Buildings	Equipment	investments	Total
Cost As at 1 January 2016	112,235,559	471,001,295	169,633,896	15,900,194	768,770,944

New acquisitions as a result of merger by absorption New acquisitions	0 0	4,962 0	1,620,367 0	27,437 11,606,051	1,652,766 11,606,051

Disposals/Impairments	(12,088,306)	(644,194)	(3,817,337)	(239,231)	(16,789,068)
Transfer from ongoing investments	666,413	9,338,127	6,027,046	(16,031,586)	0
Transfer to investment property	(82,527)	(7,827,464)	0	0	(7,909,991)
Transfer from investment property As at 30 September 2016	513,304 101,244,443	2,451,389 474,324,114	0 173,463,972	0 11,262,865	2,964,693 760,295,393

Accumulated depreciation
As at 1 January 2016		0 (322,982,864) (118,839,077)			0 (441,821,941)
New acquisitions as a result of merger by absorption	0	(1,459)	(1,301,613)	0	(1,303,072)
Depreciation	0	(11,437,705)	(7,164,781)	0	(18,602,486)
Disposals/Impairments	0	337,590	3,218,620	0	3,556,210
Transfer to investment property	0	3,523,813	0	0	3,523,813
Transfer from investment property	0	(1,449,572)	0	0	(1,449,572)
As at 30 September 2016		0 (332,010,197) (124,086,851)			0 (456,097,048)

Net carrying amount as at 1 January 2016 112,235,559 148,018,431 50,794,819 15,900,194 326,949,002 Net carrying amount as at 30 September 2016 101,244,443 142,313,917 49,377,121 11,262,865 304,198,345

12. Investment in subsidiaries

Investments in subsidiaries are eliminated from the Group's financial statements during consolidation.

	Petrol d.d.
	30 September	30 September
(in EUR)	2016	2015
As at 1 January	286,097,454	284,269,540
New acquisitions	9,659,623	15,110,162
Merger by absorption	(755,579)	(6,824,403)
As at 30 September	295,001,498	292,555,299

13. Investments in jointly controlled entities

	The Petrol Group			Petrol d.d.
	30 September	30 September	30 September	30 September
(in EUR)	2016	2015	2016	2015
As at 1 January	50,451,020	50,064,833	2,512,140	4,081,683
Attributed profit	78,406	2,427,462	0	0
Dividends received	(2,150,000)	(1,900,000)	0	0
New acquisitions	0	1	0	1
Attribution of changes in the equity of jointly controlled
entities	0	8,956	0	0
As at 30 September	48,379,426	50,601,252	2,512,140	4,081,684

14. Investments in associates

	The Petrol Group		Petrol d.d.
	30 September	30 September	30 September	30 September
(in EUR)	2016	2015	2016	2015
As at 1 January	117,494,379	103,592,923	53,206,341	53,206,341
Attributed profit	4,076,413	5,576,318	0	0
Dividends received	(3,215,883)	(2,698,578)	0	0
New acquisitions	2,500	11,299,997	0	0
Disposals	(399,899)	0	(353,801)	0
Attributed changes in the equity of associates	(23,6 47)	0	0	0
As at 30 September	117,933,863	117,770,660	52,852,540	53,206,341

15. Financial assets available for sale

	The Petrol Group		Petrol d.d.
	30 September	30 September	30 September	30 September
(in EUR)	2016	2015	2016	2015

As at 1 January	1,764,945	1,645,185	1,685,902	1,515,239
New acquisitions as a result of merger by absorption	0	0	0	50,903
New acquisitions	1,163,555	119,760	1,163,555	119,760
Disposals	(77,512)	0	(77,512)	0

As at 30 September	2,850,989	1,764,945	2,771,945	1,685,902

Report on the operations of the Petrol Group and the company Petrol d.d., Ljubljana in the first nine months of 2016

16. Inventories

		The Petrol Group		Petrol d.d.
	30 September	31 December	30 September	31 December
(in EUR)	2016	2015	2016	2015

Spare parts and materials	2,564,759	1,910,100	1,804,910	239,617
Merchandise:	82,232,444	89,571,968	66,563,654	72,524,780
- fuel	50,280,753	57,125,464	39,830,705	45,604,615
- other petroleum products	4,547,751	3,947,003	3,871,776	3,259,146
- other mercandise	27,403,940	28,499,501	22,861,173	23,661,019

Total inventories	84,797,203	91,482,068	68,368,564	72,764,397

17. Current financial receivables

	The Petrol Group		Petrol d.d.
	30 September	31 December	30 September	31 December
(in EUR)	2016	2015	2016	2015
Loans granted	7,616,207	10,412,971	19,763,072	14,208,283
Adjustment to the value of loans granted	(2,927,833)	(3,491,509)	(1,926,583)	(2,340,002)
Time deposits with banks (3 months to 1 year)	80,017	704,624	0	0
Interest receivables	831,927	760,947	3,437,498	3,173,719
Allowance for interest receivables	(143,136)	(143,957)	(2,729,126)	(2,245,159)
Finance lease receivables	91,573	82,634	93,296	84,043
Total current financial receivables	5,548,755	8,325,710	18,638,157	12,880,885

18. Current operating receivables

	The Petrol Group		Petrol d.d.
	30 September	31 December	30 September	31 December
(in EUR)	2016	2015	2016	2015

Trade receivables	337,132,974	371,357,701	254,392,824	276,179,674
Allowance for trade receivables	(52,114,774)	(52,411,243)	(29,243,139)	(29,857,150)
Operating receivables from state and other institutions	13,103,609	1,600,483	5,819,143	337,816
Operating interest receivables	4,053,066	3,945,709	5,104,801	4,956,878
Allowance for interest receivables	(2,360,027)	(2,220,010)	(2,190,155)	(2,021,105)
Receivables from insurance companies (loss events)	251,840	366,172	128,079	199,672
Other operating receivables	1,615,159	1,900,861	40,984	86,957
Allowance for other receivables	(384,365)	(384,365)	0	0
Total current operating receivables	301,297,482	324,155,308	234,052,537	249,882,742

19. Financial assets at fair value through profit or loss

	The Petrol Group		Petrol d.d.
	30 September	31 December	30 September	31 December
(in EUR)	2016	2015	2016	2015

Assets arising from commodity swaps	349,330	2,295,710	349,330	2,295,710
Assets arising from forward contracts	273,915	0	273,915	0

Total financial assets at fair value through profit or loss	623,245	2,295,710	623,245	2,295,710

20. Prepayments and other assets

	The Petrol Group		Petrol d.d.
	30 September	31 December	30 September	31 December
(in EUR)	2016	2015	2016	2015
Prepayments	12,460,429	11,755,883	9,033,783	8,387,709
Prepaid subscriptions, specialised literature, etc.	1,509,469	1,215,715	1,169,940	1,002,731
Prepaid insurance premiums	1,220,501	772,710	922,414	533,854
Uninvoiced services and goods	819,562	617,322	1,814,005	594,321
Other deferred costs and accrued revenue	3,413,334	1,413,270	2,161,315	472,355

Total prepayments and other assets	19,423,295	15,774,900	15,101,457	10,990,970

21. Financial liabilities

	The Petrol Group		Petrol d.d.
	30 September	31 December	30 September	31 December
(in EUR)	2016	2015	2016	2015

Current financial liabilities
Bank loans	61,323,643	27,676,799	46,852,911	16,693,347
Bonds issued	38,279,650	37,606,775	38,279,650	37,606,775
Liabilities arising from commodity swaps	718,572	1,136,481	718,572	2,332,383
Liabilities to banks arising from interest rate swaps	646,906	918,893	0	0
Liabilities to banks arising from forward contracts	0	1,098,581	0	1,098,581
Liabilities from valuations of options	205,728	0	205,728	0
Other loans and financial liabilities	16,466,580	1,443,232	88,963,214	50,233,264
	117,641,079	69,880,761	175,020,075	107,964,350
Non-current financial liabilities
Bonds issued	269,609,665	290,156,311	269,609,665	290,156,311
Bank loans	70,837,616	125,367,754	12,440,194	55,819,027
Loans obtained from other companies	12,176	36,915	0	0
	340,459,457	415,560,980	282,049,859	345,975,338

Total financial liabilities	458,100,536	485,441,741	457,069,934	453,939,688

22. Current operating liabilities

	The Petrol Group		Petrol d.d.
	30 September	31 December	30 September	31 December
(in EUR)	2016	2015	2016	2015

Trade liabilities	217,257,201	291,343,537	177,916,125	245,537,011
Excise duty liabilities	65,167,409	58,784,718	57,288,099	51,848,822
Value added tax liabilities	35,066,876	18,203,996	24,987,588	12,731,938
Environment pollution charge liabilities	9,947,177	11,085,799	9,845,492	10,986,981
Liabilities to employees	7,440,703	6,006,327	5,895,126	4,337,163
Liabilities arising from interests acquired	3,271,092	1,521,447	3,267,903	1,518,029
Import duty liabilities	2,698,823	7,897,791	0	5,833,750
Liabilities arising from prepayments and collaterals	2,433,513	3,945,158	1,418,826	1,570,822
Other liabilities to the state and other state institutions	1,111,331	1,083,740	213,204	190,330
Liabilities associated with the allocation of profit or loss	708,308	627,319	708,308	627,319
Social security contribution liabilities	552,022	531,762	459,633	433,285
Other liabilities	1,232,281	1,853,294	1,402,852	1,504,053

Total current operating and other liabilities	346,886,736	402,884,888	283,403,156	337,119,503

Report on the operations of the Petrol Group and the company Petrol d.d., Ljubljana in the first nine months of 2016

23. Other liabilities

	The Petrol Group		Petrol d.d.
	30 September	31 December	30 September	31 December
(in EUR)	2016	2015	2016	2015

Accrued annual leave expenses	1,697,555	1,680,575	1,146,779	1,078,871
Accrued litigation expenses	973,002	1,569,831	686,686	848,169
Accrued goods shortages	650,695	311,892	0	311,892
Accrued motorway site lease payments	153,534	119,125	153,534	119,125
Accrued expenses for tanker demurrage	138,095	122,510	138,095	122,510
Accrued concession fee costs	101,273	211,885	39,965	188,047
Other accrued costs	8,675,099	7,546,976	6,009,260	5,096,610
Deferred revenue from rebates granted	1,698,933	541,245	1,253,331	167,278
Deferred default interest income	1,437,713	1,425,331	1,424,989	1,424,989
Deferred prepaid card revenue	873,569	1,737,719	847,281	1,684,871
Deferred revenue from heating	0	147,323	0	0
Other deferred revenue	239,230	474,465	61,331	278,095
Total other liabilities	16,638,698	15,888,877	11,761,251	11,320,457

24. Financial instruments and risks

This chapter presents disclosures about financial instruments and risks. Risk management is explained in the interim report, in the chapter Risk management.