Report on the operations of the Petrol Group and the company Petrol d.d., Ljubljana in the first three months of 2019

May 2019

Report on the operations of the Petrol Group and the company Petrol d.d., Ljubljana in the first three months of 2019

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 merchandise and related services 16 Sales of services 16 Sales of liquefied petroleum gas16 Natural gas sales and trading 16 Electricity sales and trading 17 B. ENERGY AND ENVIRONMENTAL SOLUTIONS 17
C. PRODUCTION OF RENEWABLE ELECTRICITY 18
Sustainable development 18
Employees 18 Investments 19 The quality management system 20 Social responsibility 21 Risk management 21
Petrol's shares 24
Contingent increase in share capital 26
Dividends 26
Own shares 27
Regular participation at investors' conferences and external communication 27
Credit rating 27
Business plan for 2019 27
Events after the end of the accounting period 28
FINANCIAL REPORT 32
Financial performance of the Petrol Group and the company Petrol d.d., Ljubljana 33
Notes to the financial statements 39
Notes to individual items in the financial statements 42
APPENDIX 1: ORGANISATIONAL STRUCTURE OF THE PETROL GROUP 62

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 three months of 2019 has been drawn up in accordance with International Financial Reporting Standards as adopted by the EU 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 consolidated companies as a whole;
− the business report of the Petrol Group and Petrol d.d., Ljubljana for the first three months of 2019 gives a fair view of the development and results of the Company's operations and its financial position, including the description of material risks that the company Petrol d.d., Ljubljana and other consolidated companies are exposed to as a whole;
− the report of the Petrol Group and the company Petrol d.d., Ljubljana for the first three months of 2019 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 and Worker Director

INTRODUCTORY NOTES

The report on the operations of the Petrol Group and Petrol, d.d., Ljubljana, Dunajska 50, in the first three months of 2019 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 Petrol d.d., Ljubljana for the first three months of 2019 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 accordance with IFRS, investments in subsidiaries, jointly controlled entities and associates are carried at historical cost in the separate financial statements.

The report on the operations in the first three months of 2019 has been published on the website of Petrol d.d., Ljubljana (www.petrol.eu, 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 three months of 2019 at its meeting held on 16 May 2019.

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, http://www.petrol.eu
Activity code	47.301
Company registration number	5025796000
Tax number	SI 80267432
Share capital	EUR million 52.24
Number of shares	2,086,301
President of the Management board	Tomaž Berločnik
Members of the Management board	Rok Vodnik, Igor Stebemak, Ika Krevzel Panić (worker director)
President of the Supervisory board	Nada Drobne Popović

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
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-III 2019		I-III 2018 Index 2019 / 2018
Sales revenues	EUR million	1,361.3	1,147.4	119
Adjusted gross profit1	EUR million	112.1	102.2	110
Operating profit	EUR million	30.4	25.5	119
Net profit	EUR million	18.2	17.9	102
EBITDA	EUR million	46.3	37.7	123
Non-current (long-term) assets as at period end	EUR million	922.1	821.2	112
Earnings per share	EUR	8.9	8.7	102
Net debt / EBITDA2		2.0	2.2	93

¹Adjusted gross profit = Sales revenues - Cost of goods sold (this item is not defined in international Financial Reporting Standards)

2 EBITDA calculated on an annual level. In 2019, the introduction of IFRS 16, which also requires that lease assets and liabilities be recognised and measured also for most operating leases, as is the case with finance leases.

The Petrol Group	UNIT	I-III 2019		I-III 2018 Index 2019 / 2018
Volume of petroleum products sold	thousand tons	906.5	729.0	124
Volume of liquefied petroleum gas sold	thousand tons	44.2	38.3	115
Volume of natural gas sold	000 MWh	5,572.8	7,354.7	76
Electricity sold	TWh	6.3	4.5	139
Revenue from the sale of merchandise	EUR million	130.8	119.5	109
Number of service stations as at period end1		505	500	101

1 Number of service stations for the year 2018 as at 31 December 2018.

Sli5ka 2,

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

Figure 5: Number of employees in the Petrol Group

Figure 2: Net profit or loss of the Petrol group

Figure 4: Volume of petroleum products sold by the Petrol Group

Figure 6: Breakdown of the Petrol Group's investments in the first three months of 2019

BUSINESS REPORT

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Operations of the Petrol Group

The Petrol Group operates in a competitive environment influenced by oil price fluctuations, US dollar exchange rate, global and domestic economic developments, and national laws governing the pricing of energy products. In Slovenia and Croatia, the economic situation is improving, but other SE Europe countries which also make up Petrol's sales market still face demanding economic conditions, low purchasing power and high unemployment. Although in Slovenia, where the Petrol Group sells the greater part of its petroleum products, the prices of petrol and diesel fuel at motorway and expressway service stations have been liberalised and determined by the market, the prices of petrol (less than 98 octane) and diesel fuel at other service stations remain regulated.

The Petrol Group's sales revenue for the first three months of 2019 stood at EUR 1.4 billion, a year-on-year increase of 19 percent, which was mainly due to higher sales. Adjusted gross profit stood at EUR 112.1 million, which was 10 percent more than in the first three months of 2018. EBITDA totalled EUR 46.3 million, which was 23 percent more than in the first three months of 2018.

Figure 7: EBITDA broken down by activity

Figure 8: EBITDA broken down by market

Net profit for the first quarter of 2019 totalled EUR 18.2 million and was up 2 percent year-onyear.

In the first three months of 2019, the Petrol Group sold 906.5 thousand tons of petroleum products, a year-on-year increase of 24 percent. In Slovenia, the three-month sales of petroleum products stood at 451.1 thousand tons, accounting for 50 percent of the Petrol Group's total sales. In the same period, the Group sold 181.7 thousand tons of petroleum products in SEE markets, representing 20 percent of the Petrol Group's total sales, and 273.7 thousand tons in EU markets, which represented 30 percent of the Group's total sales.

At the end of March 2019, the Petrol Group's retail network consisted of 505 service stations, of which 319 were in Slovenia, 107 in Croatia, 42 in Bosnia and Herzegovina, 14 in Serbia, 12 in Montenegro and 11 in Kosovo.

During this period, EUR 130.8 million was generated in revenue from the sale of merchandise and related services, an increase of 9 percent compared to the same period of the previous year.

In the first three months of 2019, the Group sold 44.2 thousand tons of liquefied petroleum gas, a year-on-year increase of 15 percent.

What follows is a detailed presentation of the Petrol Group's operations in the first three months of 2019 broken down by type of activity:

A. Sales, consisting of petroleum product sales, liquefied petroleum gas sales, natural gas sales and trading, electricity sales and trading, merchandise sales and sale of services
B. Energy and environmental solutions, consisting of energy solutions for the public and commercial sector, energy solutions for the industry and apartment buildings, and natural gas distribution
C. Production of renewable electricity

A. SALES

In the first three months of 2019, the Petrol Group generated EUR 1.3 billion in sales revenue.

Sales of petroleum products

In the first three months of 2019, the Petrol Group sold 906.5 thousand tons of petroleum products, a year-on-year increase of 24 percent.

In Slovenia, 451.1 thousand tons of petroleum products were sold in the first three months of 2019, a year-on-year increase of 20 percent. Motor fuel sales (petrol and diesel fuel) were up 14 percent compared to the previous year's figures for this period.

In SEE markets, 181.7 thousand tons of petroleum products were sold in the first three months of 2019, a year-on-year increase of 5 percent. The most important commodities sold in SEE markets are diesel fuel and petrol.

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In addition to the above, the jointly controlled entity Petrol - Oti - Slovenija L.L.C. sold 1.2 thousand tons of petroleum products.

In EU markets, 273.7 thousand tons of petroleum products were sold in the first three months of 2019, a year-on-year increase of 52 percent. The most important item sold in EU markets is diesel fuel.

Key impacts on operations

Fuel pricing in Slovenia

The prices of petrol and diesel fuel at motorway and expressway service stations have been liberalised and determined by the market, while the prices of petrol and diesel fuel at other service stations remain regulated.

Until 31 March 2019, the prices of regulated motor fuels were set in accordance with the Decree on Setting Prices for Certain Petroleum Products which was in force from 1 October 2018 onwards. On 28 March 2019, the Government of the Republic of Slovenia adopted a new Decree on Setting Prices for Certain Petroleum Products, which shall remain in force until 30 September 2019. The pricing methods under each of the decrees remained unchanged compared to their preceding decrees.

The model-based margin is still government-regulated and stands at EUR 0.08701 per litre of NMB-95 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 determined by the market.

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 69 percent of the average gross margin in the EU countries (61 percent if the compulsory stocks membership fee is not taken into account) and in the case of diesel fuel to 56 percent (49 percent if the compulsory stocks membership fee is not taken into account) (own calculations based on Platt's and Oil Bulletin data).

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 and determined by the market.

Fuel pricing in Bosnia and Herzegovina

In Bosnia and Herzegovina, the prices of petroleum products are not government-regulated and are set freely and determined by the market. The prices may change on a daily basis. In the Federation of Bosnia and Herzegovina, retailers notify the Federal Ministry of Commerce of new retail prices three 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.

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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 and determined by the market.

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 takes into account taxes, the costs of transhipment, handling, bank charges, storage, transport and distribution, as well as (excise) duties and an oil companies' gross margin. The latter 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.

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 a 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 a maximum margin. These prices represent an unofficial basis for retail prices, which change according to market-based 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 63.2 per barrel in the first three months of 2019, down 5 percent year-on-year. The average price in euros, however, was up 2 percent. During this period, the price of Brent crude peaked on 21 March 2019, reaching USD 68.8 per barrel. Its lowest price was recorded on 3 January 2019 at USD 53.2 per barrel. The prices of petrol and middle distillates followed the same trends as crude oil prices.

Figure 9: Changes in Brent Dated High oil price in the first three months of 2019 in USD/barrel

SOURCE: Petrol, 2019

Figure 10: Changes in Brent Dated High oil price in the first three months of 2019 in EUR/barrel

SOURCE: Petrol, 2019

OPEC's decision to limit oil output in cooperation with Russia caused an increase in the price of oil in the first quarter of 2019. Future oil price movements will continue to depend largely on OPEC's oil output agreements, the situation in the Middle East (Syria, Iran), relations between Iran and the United States, and also on economic growth expectations, US and EU oil stocks figures and demand in China.

Changes in the US dollar to the euro exchange rate

The US dollar to the euro exchange rate ranged between 1.12 and 1.15 US dollars per euro in the first three months of 2019. The average exchange rate of the US dollar according to the exchange rate of the European Central Bank stood at 1.14 US dollars per euro in the period concerned.

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Sales of merchandise and related services

Merchandise sales consist of sales of automotive products, foodstuffs, accessories, tobacco and lottery products, coupons and cards, coffee-to-go and wood biomass. The Petrol Group generated EUR 130.8 million in revenue from the sale of merchandise and related services¹ in the first three months of 2019, an increase of 9 percent compared to the same period of the previous year.

In Slovenia, EUR 114.8 million was generated in revenue from the sale of merchandise and related services in the first three months of 2019, an increase of 8 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 accommodate the needs of our service station customers by quickly adapting the range.

In SE Europe markets, EUR 16.0 million was generated in revenue from the sale of merchandise in the first three months of 2019, an increase of 17 percent compared to the same period of the previous year. 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 three months of 2019, the Petrol Group generated EUR 8.6 million in revenue from the services related to oil and merchandise sales.

Sales of liquefied petroleum gas

In the first three months of 2019, the Petrol Group sold 44.2 thousand tons of liquefied petroleum gas, a year-on-year increase of 15 percent.

At the end of March 2019, the Petrol Group operated 5 LPG supply concessions in Slovenia. In addition, the company Petrol 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.

Natural gas sales and trading

In the first three months of 2019, the Petrol Group sold 5.6 TWh of natural gas or 24 percent less than in the same period of the previous year. Of this quantity, 4.3 TWh were sold to end users and 1.3 TWh as part of trading.

¹ In accordance with the new accounting standard IFRS 15, the Petrol Group changed the method of presenting revenue from the sale of goods sold by the Group on behalf of third parties. Under the new standard, only the fee that the Group is entitled to receive in return for the sale of goods on behalf of third parties is presented in sales revenue.

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Electricity sales and trading

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. Electricity sales to end users (businesses and households) already existing in Slovenia are now being expanded to SE Europe.

In the first three months of 2019, the Petrol Group sold 6.3 TWh of electricity, a year-on-year increase of 39 percent.

B. ENERGY AND ENVIRONMENTAL SOLUTIONS

In the first three months of 2019, the Petrol Group generated EUR 20.6 million in revenue from the sale of energy and environmental solutions.

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

energy solutions for the public and commercial sector (systems of energy and environmental management of buildings in the public and commercial sector, district heating and district energy systems, water supply systems, efficient lighting systems),
energy solutions for the industry and apartment buildings,
natural gas distribution.

Long-term contract-based supply of energy and contractually guaranteed energy and water savings (performance contracting) are the most common project implementation models in the public sector, the commercial sector and in industry. These models offer a significant advantage to the customers in that Petrol assumes all technical and economic risks of project implementation and management, provides the necessary funds to carry out the measures, and supplies customers with the required energy of suitable quality, guaranteeing savings in the use of energy products compared to the previous situation.

The projects of long-term heat supply, energy renovation of buildings and the reduction of electricity consumption and water losses are largely carried out using the public-private partnership model.

In the field of industry, we have been developing various business models tailored to the needs of the customer and the customer's technological processes. Our experts prepare solutions for steam and heat, natural gas, industrial gases and compressed air, water, cooling systems and industrial waste treatment plants. We are setting up projects in the field of efficient lighting in industrial buildings. Industrial customers are included in our virtual power plant.

In addition to industrial users, we are developing solutions for commonhold unit owners and managers in the field of energy-saving renovation, control and management of boiler rooms and the installation of heat cost allocators in apartment buildings.

At the end of March 2019, the Group operated 29 natural gas supply concessions in Slovenia. In Serbia, it supplied natural gas to the municipalities of Bačka Topola and Pećinci as well as to three Belgrade municipalities. At the end of 2018, the Petrol Group also established itself in

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Croatia where its company Zagorski metalac d.o.o. distributes natural gas in certain municipalities of the Zagorje-Krapina County and the Zagreb County.

In the first three months of 2019, the Petrol Group distributed 457.5 thousand MWh of natural gas.

C. PRODUCTION OF RENEWABLE ELECTRICITY

In the first three months of 2019, the Petrol Group generated EUR 2.2 million in sales revenue in the area of renewable electricity production.

Rapid development of the global energy system is fuelled by growing energy needs as well as by environmental requirements linked to climate change. Recognising this, we also produce electricity from renewable sources – wind, water and sun, with wind power becoming increasingly important in the European energy market.

As a key element in the future development of the Petrol Group, renewable electricity production has a strategic place in Petrol's decision to become a respectable energy company. It helps us secure own long-term sources for the purpose of selling electricity, while keeping us prepared for new trends in the area of transport. At Petrol, we see enormous potential for the development of renewable electricity production in SE Europe. By developing our own production capacity, we pursue the strategic orientation of becoming a visible regional provider of comprehensive energy and environmental solutions, and a partner in the development of the circular economy for transition to the low carbon society.

The Petrol Group has been involved in electricity production since 2003, when electricity was produced at smaller production plants (photovoltaics, micro cogeneration, biogas plants).

We produce hydroelectric power in Bosnia and Herzegovina, where electricity is produced at four small hydroelectric plants on rivers Jezernica and Kozica. In 2018 we launched electricity production at the small hydroelectric power plant Jeleč (4.9 MW of output, 15 thousand MWh of annual production).

In Croatia, we started producing wind electricity at Glunča power plant in the Šibenik area in 2017 (20.7 MW of rated output, 50 thousand MWh of annual production).

Sustainable development

Employees

On 31 March 2019, the Petrol Group had 4,961 employees, of which 34 percent worked for subsidiary companies abroad. As the Group expanded its business, the number of employees increased by 104 compared to the end of 2018.

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Figure 11: Changes in the number of employees of the Petrol Group and at third-party managed service stations in the period 2016 – 2019

Employee structure

At the end of March 2019, the average age of the Petrol Group employees was 39 years. 59 percent of employees were male and 41 percent 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.

Training

In the first three months of 2019, the Petrol Group provided 20 thousand teaching hours of training, which represented, on average, 4 teaching hours of training per employee in the period concerned. Organised as part of the Petrol Group is Petrol Academy. Its main goal is to provide training to all employees in a systematic and comprehensive manner. The Group carried out technical and legally required training in the period under review.

Investments

In the first three months of 2019, net investments² in property, plant and equipment, intangible assets and long-term investments stood at EUR 15.0 million. Out of the above amount, 19 percent was allocated to sales in Slovenia, 55 percent to sales in SE Europe, 15 percent to

²Net investments in fixed assets = Investments in fixed assets – Disposal of non-current assets.

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energy and environmental solutions, and 11 percent to the upgrading of information and other infrastructure.

Figure 12: Breakdown of the Petrol Group's investments in the first three months of 2019

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 management system, environmental management system and energy management system, 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.

Table 2: Overview of certificates and laboratory accreditations
-----------------------------------------------------------------	--	--	--

Company	Quality	Environmental	Energy	Laboratory	Other
	management	management	management	accreditation	certificates
	system	system	system	s
Petrol d.d., Ljubljana	ISO 9001: 2015	ISO 14001: 2015	ISO 50001: 2011	SIST EN ISO/IEC 17025 : 2005 SIST EN ISO/IEC 17020 : 2012	ISCC,AEO RC, FSC
Petrol d.o.o.	ISO 9001: 2015	ISO 14001: 2015	/	/	ADR/RID/ADN -I-PTR****
Petrol Geo d.o.o.	ISO 9001: 2015	/	/	/	/
Beogas d.o.o.	ISO 9001: 2015	/	/	/	/
Petrol d.o.o., Beograd	ISO 9001: 2008	ISO 14001: 2004	/	/	OHSAS 18001

*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.

***The AEO certificate is issued by the Customs Administration of the Republic of Slovenia which also carries out control and inspects AEO certificate holders. The certificate allows for easier admittance to customs simplifications, fewer physical and document-based controls, priority treatment in case of control, a possibility to request a specific place for such controls and a possibility of prior notification. To obtain an AEO certificate, several conditions and criteria need to be met: compliance with security

Report on the operations of the Petrol Group and the company Petrol d.d., Ljubljana in the first three months of 2019

and safety standards, appropriate records to demonstrate compliance with customs requirements, a reliable system of keeping commercial and transport records for control purposes, and proof of financial solvency.

****Certificate to carry out an in-house inspection service for the performance of pressure receptacle inspections in accordance with Directive 2010/35/EU. Petrol d.o.o. is an IS body under the authority of the notified body Bureau Veritas Italia for the purpose of carrying out periodic inspections of pressure receptacles defined in accordance with chapter 6.2 of ADR/RID/ADN.

In January 2019, one recertification audit of the ISO 50001 energy management system was conducted, which revealed that the system is suitably maintained and compliant with the standard's requirements. The ISO 50001 certificate was then renewed for three years.

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. Our responsible social attitude is demonstrated through the support we provide to a number of 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 we operate.

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, utilised and monitored. In doing that, we aim 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.

According to the results of the 2017 risk assessment, the most relevant and probable risks comprise the following financial risks: price and volumetric risk, foreign exchange risk, credit risk and liquidity risk.

In addition to the main financial risks, the most relevant and probable risks include legislation and regulation risks, information system risks, business decision-making risks, interest rate risks and information risks.

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Price and volumetric risk 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 and volumetric risks and to 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 volumetric and price risks to the largest extent possible by matching suppliers' terms of procurement with the terms of sale applying to customers. 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.

Trading in energy products exposes the Group to price and volumetric 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.

Transactions with derivatives are entered into only to hedge against price and volumetric risks and foreign exchange risks rather than for reasons of speculative nature.

Credit risk

The credit risk was assessed in 2017 as the third most relevant financial risk to which the Petrol Group was 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. Changes and updates to the risk management system undertaken in the past three years were further advanced in 2019 as a new information system was introduced. The new system has already been deployed within the parent company, with other Group companies following as scheduled.

In conjunction with the introduction of the new information system, the system of limits for operations involving natural persons was updated as previously announced.

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

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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 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 centralised control over credit insurance instruments received and centralised the collection process.

We consider that credit risks are adequately managed within the Petrol Group. Our assessment 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 shortterm credit rating and a stable credit rating outlook by Standard & Poor's Ratings Services, which reaffirmed the ratings on 11 April 2018. This investment-grade rating enables us to tap international financial markets more easily and represents an additional 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 three months of 2019, average petroleum product prices were somewhat lower yearon-year, meaning that slightly less working capital might be 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. Thirty-one percent of the Group's non-current financial liabilities contain a variable interest rate that is linked to EURIBOR. In the first three months of 2019, the average EURIBOR rate was comparable to the one at the end of 2018 and thus remains historically low (negative).

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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 the first three months of 2019, no additional interest rate hedging contracts were concluded.

Petrol's shares

At the end of March 2019, share prices at the Ljubljana Stock Exchange were on average higher than at the end of 2018. 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 867.66 as at the end of March 2019 and was up 7.8 percent relative to the end of 2018 (805.06). During this period, Petrol's shares gained 10.6 percent in value. In terms of trading volume, which in the case of Petrol's shares amounted to EUR 5 million between January and March, the shares were ranked fourth among the shares traded on the Ljubljana Stock Exchange. In terms of market capitalisation, which stood at EUR 715.6 million as at 31 March 2019, the shares were ranked fourth and accounted for 10.7 percent of the total Slovene stock market capitalisation on the said date.

In the first three months of 2019, the price of Petrol's shares ranged between EUR 315 and EUR 348 per share. Their average price for the period stood at EUR 330.85 and their price as at the end of March 2019 at EUR 343.00. The Petrol Group's earnings per share stood at EUR 8.88, with its book value per share amounting to EUR 366.31. Petrol d.d., Ljubljana had 23,485 shareholders as at 31 March 2019. At the end of March 2019, 550,355 shares or 26.4 percent of all shares were held by foreign legal or natural persons. Compared to the end of 2018, the number of foreign shareholders increased by 0.1 percentage points.

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Figure 14: Closing price and the volume of trading in Petrol's shares in the first three months of 2019

Figure 15: Ownership structure of Petrol d.d., Ljubljana as at 31 March 2019

Table 3: Changes in the ownership structure of Petrol d.d., Ljubljana (comparison between 31 March 2019 and 31 December 2018)

	March 31, 2019		December 31, 2018
	No. of Shares	in %	No. of Shares	in %
Slovenski državni holding d.d.	264,516	12.7%	264,516	12.7%
Kapitalska družba d.d. together with own funds	183,992	8.8%	184,136	8.8%
Republic of Slovenia	210,689	10.1%	210,689	-
Other institutional investors - domestic	265,638	12.7%	266,666	12.8%
Banks - domestic	27,415	1.3%	30,214	1.4%
Insurers - domestic	25,486	1.2%	25,486	1.2%
Foreign legal entities (banks and other inst. inv.)	544,134	26.1%	543,030	26.0%
Private individuals (domestic and foreign)	466,350	22.4%	463,792	22.2%
Own shares	30,723	1.5%	30,723	1.5%
Others	67,358	3.2%	67,049	3.2%
Total	2,086,301	100.0%	2,086,301	100.0%

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Table 4: 10 largest shareholders of Petrol d.d., Ljubljana as at 31 March 2019

Shareholder	Address	No. of Shares Share in %
1 ČEŠKOSLOVENSKA OBCHODNI BANK, A.S. - FID	RADLICKA 333/150, 150 57 PRAGA 5, REPUBLIKA ČEŠKA	266,726	12.78%
2 SLOVENSKI DRŽAVNI HOLDING, D.D.	MALA ULICA 5, 1000 LJUBLJANA	264,516	12.68%
3 REPUBLIKA SLOVENIJA	GREGORČIČEVA ULICA 20, 1000 LJUBLJANA	210,689	10.10%
4 KAPITALSKA DRUŽBA, D.D.	DUNAJSKA CESTA 119, 1000 LJUBLJANA	172,639	8.27%
5 OTP BANKA D.D. - CLIENT ACCOUNT - FIDUCI	DOMOVINSKOG RATA 61, 21000 SPLIT, HRVAŠKA	109,651	5.26%
6 VIZIJA HOLDING, K.D.D.	DUNAJSKA CESTA 156, 1000 LJUBLJANA	71,676	3.44%
7 VIZIJA HOLDING ENA, K.D.D.	DUNAJSKA CESTA 156, 1000 LJUBLJANA	63,620	3.05%
8 PERSPEKTIVA FT D.O.O.	DUNAJSKA CESTA 156, 1000 LJUBLJANA	36,262	1.74%
9 SOP LJUBLJANA	VOŠNJAKOVA ULICA 6, 1000 LJUBLJANA	33,512	1.61%
10 CITIBANK N.A. - FIDUCIARNI RAČUN	CITIBANK CENTRE, CANADA SQUARE, CANARY W, E14 5LB, LONDON, VELIKA BRITANJA	28,961	1.39%

Table 5: Shares owned by members of the Supervisory Board and the Management Board as at 31 March 2019

Name and Surname	Position	No. of shares	Share of equity
Supervisory board		88	0.0042%
Internal members		0	0.0000%
1. Zoran Gračner	Supervisory Board Member	0	0.0000%
2. Alen Mihelčič	Supervisory Board Member	0	0.0000%
3. Robert Ravnikar	Supervisory Board Member	0	0.0000%
Zunanji člani		88	0.0042%
1. Nada Drobne Popović	Supervisory Board President	1	0.0000%
2. Sašo Berger	Supervisory Board Vice-president	0	0.0000%
3. Igo Gruden	Supervisory Board Member	0	0.0000%
4. Sergij Goriup	Supervisory Board Member	5	0.0002%
5. Metod Podkrižnik	Supervisory Board Member	82	0.0039%
6. Mladen Kaliterna	Supervisory Board Member	0	0.0000%
Uprava		270	0.0129%
1. Tomaž Berločnik	Management Board President	0	0.0000%
2. Igor Stebernak	Management Board Member	0	0.0000%
3. Rok Vodnik	Management Board Member	270	0.0129%
4. Ika Krevzel Panić	Management Board Member/Worker Director	0	0.0000%

Contingent increase in share capital

In the period up to 31 March 2019, 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 29th General Meeting held on 18 April 2019, Petrol d.d., Ljubljana shall pay 2018 gross dividends of EUR 18.00 per share in August 2019. The gross dividend per share for 2017, which was paid in 2018, stood at EUR 16.00.

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Own shares

Petrol d.d., Ljubljana did not repurchase its own shares in the first three months of 2019. As at 31 March 2019, the Company held 30,723 own shares, representing 1.5 percent of its registered share capital. This includes 24,703 own shares that were acquired by Petrol d.d., Ljubljana in the period 1997 to 1999. Their total cost equalled EUR 2.6 million as at 31 March 2019 and was EUR 5.9 million lower than their market value on that date. The remaining 6,020 shares are the shares that are considered as own shares which were held by the subsidiary Geoplin d.o.o. Ljubljana at the time it was incorporated in the Petrol Group.

Own shares of Petrol d.d., Ljubljana, in total 36,142 (without the shares of Geoplin d.o.o. Ljubljana), were purchased between 1997 and 1999. The Company may acquire these 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.

In accordance with a resolution of the 27th General Meeting held on 10 April 2017, the Company's Management Board is authorised to acquire own shares within 36 months of the adoption of the resolution. Under this authorisation, a maximum of 208,630 own shares may be acquired, but the total percentage of the shares acquired based on this authorisation may not exceed, together with other own shares already held by the Company (24,703 own shares plus 6,020 own shares of Geoplin d.o.o. Ljubljana, in total 30,723 own shares), 10 percent of the Company's share capital (208,630 shares). In 2018 Petrol d.d., Ljubljana did not adopt a programme to prepare a policy for creating own shares.

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. We regularly attend investors' conferences that are organised each year by stock exchanges, banks and brokerage companies. There were several individual meetings with investors and analysts in the first three months of 2019. In March, we participated in a Ljubljana Stock Exchange webcast. In April, we attended an investors' conference organised by the Ljubljana Stock Exchange and the Zagreb Stock Exchange in New York as well as an investor roadshow in London organised by Zagreb-based InterCapital and the London Stock Exchange.

Credit rating

On 11 April 2018, 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.

Business plan for 2019

The Petrol Group has set ambitious goals for 2019. To achieve them, it will pay particular attention to the optimisation of operational and supporting business processes in 2019.

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At the Petrol Group, we realise that despite careful preparation, informed business decisions, quick response to changes and an efficient risk management system external factors may arise in the business environment which are beyond our direct control and may pose a risk or a threat when it comes to meeting our targets. In 2019 these factors include:

sales in the EU market, the extremely volatility of which might keep us from reaching our sales targets,
the impact of the Act Regulating the Construction, Operation and Management of the Second Track of the Divača-Koper Railway Line, which foresees two new duties in order to finance the construction: a charge on transshipment in the freight port of Koper to be paid by the transshipment operator and an additional charge to the toll paid by the tollpaying entities, which would mean higher costs for the Petrol Group,
proposal amending the Minimum Wage Act, which redefines the minimum wage by excluding allowances (including the length of service allowance), the job performance bonus and the business performance bonus, which might bring up labour costs.

The Petrol Group's main business targets for 2019:

Sales revenue of EUR 5.6 billion
Adjusted gross profit of EUR 475 million
EBITDA of EUR 186.4 million
Net profit of EUR 96.7 million
Net debt to equity ratio of 0.4
Net debt to EBITDA ratio of 1.8 (or 2.1 if IFRS 16 is taken into account)
Financial leverage ratio of 29%
3.3 million tons of petroleum products sold
Revenue from merchandise sales and related services of EUR 609.1 million a figure in accordance with IAS 18 which is no longer in effect (or EUR 481.6 million if IFRS 15 is taken into account)
Retail network consisting of 515 service stations
Investments in fixed assets of EUR 101 million

Considering its first-quarter results, the Petrol Group is successfully delivering on its 2019 targets.

As from 1 March and as laid down in the Act Regulating the Construction, Operation and Management of the Second Track of the Divača-Koper Railway Line, the charge on transshipment in the freight port of Koper is now levied and paid by transshipment operators. In addition, an additional charge to the toll paid by toll-paying entities is levied from the beginning of 2019, which means higher costs for the Petrol Group.

Events after the end of the accounting period

At the 29th General Meeting of Petrol d.d., Ljubljana held on 18 April 2019, the following resolutions were adopted:

Accumulated profit of EUR 49,769,123 as at 31 December 2018 shall be used as follows:
- o accumulated profit of EUR 37,553,418 shall be distributed as dividend payments, with gross dividends amounting to EUR 18.00 per share (taking into account the total number of shares issued, i.e. without excluding own shares);

o the remaining accumulated profit of EUR 12,215,705 and any amounts linked to own shares arising on the date the dividends are paid and amounts resulting from rounding off dividend payments shall be transferred to other revenue reserves.

The Company shall pay out dividends on 9 August 2019 to shareholders registered with KDD – the Central Securities Clearing Corporation on 8 August 2019.

The Company's Management Board shall be granted discharge from liability for the year 2018.
The Company's Supervisory Board shall be granted discharge from liability for the year 2018.
The audit firm ERNST & YOUNG Revizija, poslovno svetovanje, d.o.o., Dunajska cesta 111, Ljubljana, shall be appointed auditor of the Company for 2019, 2020 and 2021.
The Company's Articles of Association shall be amended as follows:
- o owing to changes introduced as regards the Company's activities, the following shall be added to Clause 03.01. of the Articles of Association:
  - 08.120 Operation of gravel and sand pits, mining of clays and kaolin
  - 08.910 Mining of chemical and fertiliser minerals
  - 08.930 Extraction of salt
  - 08.990 Other mining and quarrying n.e.c.
  - 09.900 Support activities for other mining and quarrying
  - 49.310 Urban and suburban passenger land transport
49.320 Taxi operation

49.391 Interurban and other road passenger transport;

o due to the expiry of a five-year period, the provisions pertaining to the authorised capital of the Company shall be deleted, namely the title 07A.00. AUTHORISED CAPITAL and Clauses 07A.01., 07A.02. and 07A.03;
o the provisions of Clause 09.04. shall be extended by adding a new sentence at the end of the Clause, reading as follows: "A member of the Management Board shall hold at least a bachelor's or master's degree from a relevant university (Bologna 2nd Cycle Degree), and shall have five years of appropriate work experience in managerial positions and suitable knowledge and organisational skills to manage the company. Further, the member shall demonstrate professional and personal integrity."
o a new second paragraph shall be added to Clause 10.13., which reads as follows: "A member of the Supervisory Board may resign from the position of Member of the Supervisory Board prior to the expiry of the term of office for which he/she has been appointed. However, the resignation shall not be given at an inappropriate time, and is subject to a 90 days' notice period. In the case the resignation is given at an inappropriate time, the member of the Supervisory Board shall be liable to the company for any damage caused to it, despite the fact that the 90 days' notice period has been observed."
o Clause 10.14. shall be amended to read: "In return for their work, the members of the Supervisory Board shall be entitled to receive basic remuneration for duties performed, attendance fees and reimbursement of costs in connection with their work for the Supervisory Board. The exact amounts of payments shall be determined in a resolution adopted by the General Meeting."
o Clause 10.15. shall be deleted; the previous Clause 10.16. shall be renumbered to 10.15.

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The following remuneration is set by the General Meeting for the members of the Supervisory Board in return for their work:
1. The members of the Supervisory Board shall be entitled to receive attendance fees for their attendance at Supervisory Board's meetings. Each member shall receive a gross amount of EUR 275.00 for each meeting attended. The members of a Supervisory Board Committee shall be entitled to receive attendance fees for their attendance at Committee meetings. Each member of the Committee shall receive 80 percent of the fee for attendance at the Supervisory Board's meetings. The fee for attendance at a correspondence meeting amounts to 80 percent of the regular attendance fee. Notwithstanding the foregoing and the number of their attendances at meetings, in each financial year a member of the Supervisory Board shall be entitled to receive the total amount of attendance fees not exceeding 50 percent of the basic remuneration paid on an annual basis for performing the duties of Member of the Supervisory Board. In each financial year, a member of the Supervisory Board who is also a member of a Supervisory Board Committee or Committees shall be entitled to receive, notwithstanding the foregoing and the number of their attendances at the meetings of the Supervisory Board and of the Committees, the total amount of attendance fees not exceeding 75 percent of the basic remuneration paid on an annual basis for performing the duties of Member of the Supervisory Board.
1. In addition to attendance fees, the members of the Supervisory Board shall be entitled to receive basic remuneration for performing their duties; each member shall be entitled to receive a gross annual amount of EUR 14,000.00. Further, the President of the Supervisory Board shall also be entitled to receive an additional amount of 50 percent of the basic remuneration paid for performing the duties of Member of the Supervisory Board. The Vice President / Deputy President of the Supervisory Board shall be entitled to receive an additional amount of 10 percent of the basic remuneration paid for performing the duties of Member of the Supervisory Board.

The members of a Supervisory Board Committee shall be entitled to receive an additional amount for performing their duties; each member of the Committee shall receive 25 percent of the basic remuneration paid for performing the duties of Member of the Supervisory Board. The president of a Committee shall be entitled to receive an additional amount of 37.5 percent of the basic remuneration paid for performing the duties of Member of the Supervisory Board. In each financial year, a member of a Supervisory Board Committee shall be entitled to receive, notwithstanding the foregoing and the number of committees of which they are a member or president, the total amount of additional fees not exceeding 50 percent of the basic remuneration paid on an annual basis for performing the duties of Member of the Supervisory Board. If the term of office of a member of the Supervisory Board is shorter than the financial year, the member of a Supervisory Board Committee shall be entitled to receive, notwithstanding the foregoing and the number of committees of which they are a member or president, the total amount of additional payments not exceeding 50 percent of the basic remuneration paid for performing the duties of Member of the Supervisory Board, taking into account the eligible payments for the period of their term of office in the relevant financial year.

The members of the Supervisory Board and the members of a Supervisory Board Committee shall receive basic remuneration and additional payments for performing their duties in the form of proportional monthly fees to which they are entitled as long as they perform their duties. The monthly fee shall amount to one-twelfth of the abovementioned annual payments.
1. Limits on the amount of total payments of attendance fees or additional payments to the members of the Supervisory Board shall in no way affect their statutory responsibilities and their duty to participate actively in all meetings of the Supervisory Board and the Committees of which they are members.
1. The members of the Supervisory Board shall be entitled to receive a refund of travel and accommodation costs in connection with their work for the Supervisor Board. The amounts refunded shall be defined in accordance with the regulations governing the reimbursement of costs in connection with work and other income not included in the tax base (allowances for travel and overnight stays during business trips). The amount to which a member of the Supervisory Board is entitled in accordance with the abovementioned regulations shall be calculated as a gross amount in such a way that the net amount represents the actual travel expenses refunded. Mileage expenses shall be calculated using the table of distances between places, posted on the website of AMZS, the national automobile association. Accommodation costs will be refunded only if the distance of a Supervisory Board member's and/or a Supervisory Board Committee member's permanent or temporary residence is at least 100 kilometres away from the location of the Board's or Committee's work, provided it is not possible for the member to return home owing to the lack of suitable scheduled public means of transport, or for other objective reasons.

As from the date of adopting this Resolution, the resolution on the amounts of attendance fees, adopted at the General Meeting of 7 April 2009, and the resolution on monthly payments for the performance of duties, adopted at the General Meeting of 19 May 2011, shall cease to apply.

FINANCIAL REPORT

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	1-3 2019	1-3 2018	1-3 2019	1-3 2018

Sales revenue		1,361,336,174	1,147,409,126	1,067,059,639	886,472,870
- of which excise duty		257,540,267	252,466,469	169,991,368	177,058,669
Cost of goods sold		(1,249,270,843)	(1,045,252,293)	(982,319,481)	(811,350,321)

Costs of materials	3	(8,164,336)	(9,209,103)	(6,869,727)	(5,191,725)
Costs of services	4	(33,094,603)	(33,258,784)	(27,937,255)	(26,978,631)
Labour costs	5	(23,852,274)	(21,374,346)	(17,397,702)	(14,462,254)
Depreciation and amortisation	6	(16,077,318)	(12,421,804)	(10,995,818)	(7,973,685)
Other costs	7	(3,200,649)	(2,338,530)	(2,348,994)	(1,446,376)
Operating costs		(84,389,180)	(78,602,567)	(65,549,496)	(56,052,672)
Other revenue	2	2,917,653	2,053,606	693,551	665,862
Other expenses		(205,917)	(133,062)	(94,859)	(5,829)
Operating profit		30,387,887	25,474,810	19,789,354	19,729,910

Share of profit or loss of equity accounted investees		308,946	332,203	-	-
Finance income from dividends paid by subsidiaries,
associates and jointly controlled entities		-	-	0	801,029
Other finance income	8	23,174,315	13,275,952	20,371,221	10,692,955
Other finance expenses	8	(33,006,496)	(17,069,900)	(32,356,648)	(14,665,597)
Net finance expense		(9,832,181)	(3,793,948)	(11,985,428)	(3,972,642)

Profit before tax		20,864,652	22,013,065	7,803,926	16,558,298
Tax expense		(3,946,520)	(4,106,059)	(611,903)	(2,788,418)
Deferred tax		1,330,902	(3,802)	0	81,657
Corporate income tax		(2,615,618)	(4,109,861)	(611,903)	(2,706,761)
Net profit for the period		18,249,034	17,903,204	7,192,023	13,851,536
Net profit for the period attributable to:
Owners of the controlling company		17,235,641	18,225,973	7,192,023	13,851,536

Non-controlling interest		1,013,393	(322,769)	-	-
Basic and diluted earnings per share	9	8.88	8.71	3.49	6.72

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)	1-3 2019	1-3 2018	1-3 2019	1-3 2018

Net profit for the period	18,249,034	17,903,204	7,192,023	13,851,536
Other comprehensive income to be recognised in the statement of profit or loss in the future
Effective portion of changes in the fair value of cash flow
variability hedging	(536,605)	(338,391)	(450,862)	(244,392)
Change in deferred taxes	101,098	87,153	85,664	70,233
Foreign exchange differences	(674,747)	462,582	-	-
Total other comprehensive income to be recognised in
the statement of profit or loss in the future	(1,110,254)	211,344	(365,198)	(174,159)
Other comprehensive income not to be recognised in the statement of profit or loss in the future
Unrealised actuarial gains and losses	0	0	0	0
Attribution of changes in the equity of subsidiaries	0	0	-	-
Attribution of changes in the equity of associates	0	0	-	-
Total 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	(1,110,254)	211,344	(365,198)	(174,159)
Total comprehensive income for the period	17,138,780	18,114,548	6,826,825	13,677,377
Total comprehensive income attributable to:
Owners of the controlling company	16,133,358	18,418,170	6,826,825	13,677,377
Non-controlling interest	1,005,422	(303,622)	-	-

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

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

		The Petrol Group		Petrol d.d.
			31 December		31 December
(in EUR)	Note	31 March 2019	2018	31 March 2019	2018
ASSETS
Non-current (long-term) assets
Intangible assets	10	188,211,341	188,070,862	161,557,020	161,073,945
Property, plant and equipment	11	62,065,768 654,729,729	0 653,341,473	40,130,846 363,102,666	0 366,662,451
Investment property		17,138,866	17,348,836	16,644,699	16,845,651
Investments in subsidiaries	13	-	-	327,016,637	326,416,061
Investments in jointly controlled entities	14	1,884,124	1,774,437	1,347,380	1,347,380
Investments in associates	15	51,116,598	50,917,836	27,364,454	27,364,454
Financial assets at fair value through other comprehensive
income	16	9,168,566	9,168,566	1,374,993	1,374,993
Financial receivables		1,457,183	1,466,432	21,388,011	13,605,479
Operating receivables Deferred tax assets		6,932,709 9,266,904	6,737,751 9,117,237	6,912,664 6,656,240	6,715,315 6,570,576
		1,001,971,788	937,943,430	973,495,611	927,976,305
Current assets
Inventories	17	116,444,867	138,449,703	86,384,949	101,436,745
Contract assets		1,484,967	2,278,452	1,721,422	2,056,160
Financial receivables	18	7,203,108	8,697,496	7,223,969	10,205,902
Operating receivables	19	500,820,396	531,677,349	348,282,181	388,715,450
Corporate income tax assets		268,776	331,528	0	0
Financial assets at fair value through profit or loss	20	352,190	2,626,490	352,190	2,626,490
Prepayments and other assets	21	59,534,716	50,070,501	42,851,261	33,777,606
Cash and cash equivalents		63,074,355	58,740,743	29,521,094	28,986,973
		749,183,375	792,872,262	516,337,066	567,805,326
Total assets		1,751,155,163	1,730,815,692	1,489,832,676	1,495,781,631
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		4,708,359	4,708,359	4,708,359	4,708,359
Own shares		(4,708,359)	(4,708,359)	(2,604,670)	(2,604,670)
Other revenue reserves		269,257,658	269,059,392	295,680,118	295,680,118
Fair value reserve		(652,812)	(512,238)	39,525,529	39,525,529
Hedging reserve		(1,184,782)	(749,275)	(986,283)	(621,084)
Foreign exchange differences		(5,913,642)	(5,246,866)	-	-
Retained earnings		274,455,750 731,182,489	257,220,109 714,991,439	57,488,141 588,793,440	50,296,118 581,966,615
Non-controlling interest		33,041,708	32,486,625	-	-
Total equity		764,224,197	747,478,064	588,793,440	581,966,615
Non-current liabilities
Provisions for employee post-employment and other long
term benefits		7,687,195	7,685,139	6,838,798	6,838,798
Other provisions		32,854,684	33,433,896	14,736,800	14,599,875
Long-term deferred revenue		20,334,397	19,524,265	15,939,840	15,092,684
Financial liabilities Long-term lease liabilities	22	144,088,004 55,588,834	144,505,616 24,107	121,468,757 37,099,371	121,460,476 0
Operating liabilities		1,008,217	1,152,162	857,982	857,982
Deferred tax liabilities		1,899,685	1,197,216	0	0
		263,461,016	207,522,401	196,941,547	158,849,815
Current liabilities
Financial liabilities	22	230,048,433	212,350,212	310,947,432	302,739,319
Current lease liabilities		6,884,347	0	3,316,712	0
Operating liabilities	23	441,964,910	523,858,709	363,040,756	431,668,916
Corporate income tax liabilities Contract liabilities		7,625,191 8,125,753	8,873,559 5,892,691	6,461,413 6,978,877	8,059,847 3,218,350
Other liabilities	24	28,821,316	24,840,056	13,352,500	9,278,768
		723,469,950	775,815,227	704,097,689	754,965,201
Total liabilities		986,930,966	983,337,628	901,039,237	913,815,016
Total equity and liabilities		1,751,155,163	1,730,815,692	1,489,832,676	1,495,781,631

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 35/62

Statement of changes in equity of the Petrol Group

			Rev enu e re ser ves						Equ ity
(in E UR)	Cal led- up ital cap	Cap ital plus sur	Leg al rese rv es	Res es f erv or sha own res	Ow n sh are s	Oth er r ev enu e res erv es	Fair lue va rese rv e	Hed ging rese rve	Fore ign han exc ge diffe ren ces	Reta ined ning ear s	ibut able attr to of t he own ers trol ling con com pan y	Non trol ling -con inte rest	Tota l
As a t 31 De ber 201 7 cem S 1 Adj ustm ent dop tion of IFR 5 on a	52,2 40,9 77	80,9 91,3 85	61,9 87,9 55	4,70 8,35 9	59) (4,7 08,3	214 ,915 ,535 (307 ,807 )	) (832 ,522	) (39, 917	69) (6,0 53,2	247 ,992 ,625	651 ,202 ,769	50,6 64,3 85	701 ,867 ,154
As at 1 Jan y 20 18 uar	52,2 40,9 77	80,9 91,3 85	61,9 87,9 55	4,70 8,35 9	59) (4,7 08,3	214 ,607 ,728	) (832 ,522	) (39, 917	69) (6,0 53,2	247 ,992 ,625	(307 ,807 ) 650 ,894 ,962	50,6 64,3 85	(307 ,807 ) 701 ,559 ,347
Incr e/(d ) in trol ling inte rest eas ecre ase non -con Tran tion ith o sac s w wne rs	0	0	0	0	0	967 ,055 967 ,055	20,0 32 20,0 32	0	0	0	987 ,087 987 ,087	(4,0 05,0 81) 81) (4,0 05,0	(3,0 17,9 94) (3,0 17,9 94)
Net prof it fo r the riod pe Oth han in o ther ive inco									443	18,2 25,9 73	18,2 25,9 73 192	(322 ,769 ) 47	17,9 03,2 04 211
peh er c ges com ens me Tota l ch es i tal c reh iv e in n to ang omp ens com e	0	0	0	0	0	0	0	(251 ,238 ) ( 251 ,238 )	,435 443 ,435	18,2 25,9 73	,197 18,4 18,1 70	19,1 (303 ,622 )	,344 18,1 14,5 48
As 1 M h 20 at 3 18 arc	52,2 40,9 77	80,9 91,3 85	61,9 87,9 55	4,70 8,35 9	59) (4,7 08,3	215 ,574 ,783	) (812 ,490	) (291 ,155	34) (5,6 09,8	266 ,218 ,598	670 ,300 ,219	46,3 55,6 82	716 ,655 ,901
As at 1 Jan y 20 19 uar Incr e/(d ) in trol ling inte rest eas ecre ase non -con	52,2 40,9 77	80,9 91,3 85	61,9 87,9 55	4,70 8,35 9	59) (4,7 08,3	269 ,059 ,392 198 ,266	) (512 ,238 (140 ,574 )	) (749 ,275	66) (5,2 46,8	257 ,220 ,109	714 ,991 ,439 57,6 92	32,4 86,6 25 (450 ,339 )	747 ,478 ,064 (392 ,647 )
Tran tion ith o sac s w wne rs	0	0	0	0	0	198 ,266	) (140 ,574	0	0	0	57,6 92	) (450 ,339	(392 ,647 )
Net prof it fo r the riod pe Oth han in o ther peh ive inco er c ges com ens me								(435 ,507 )	(666 ,776 )	17,2 35,6 41	17,2 35,6 41 (1,1 02,2 83)	1,01 3,39 3 (7,9 71)	18,2 49,0 34 (1,1 10,2 54)
Tota l ch es i n to tal c reh iv e in ang omp ens com e	0	0	0	0	0	0	0	( 435 ,507	) (666 ,776 )	17,2 35,6 41	16,1 33,3 58	1,00 5,42 2	17,1 38,7 80
As at 3 1 M h 20 19 arc	52,2 40,9 77	80,9 91,3 85	61,9 87,9 55	4,70 8,35 9	59) (4,7 08,3	269 ,257 ,658	) (652 ,812	82) (1,1 84,7	42) (5,9 13,6	274 ,455 ,750	731 ,182 ,489	33,0 41,7 08	764 ,224 ,197

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 36/62

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

			Rev enu e re ser v es

(in E UR)	Cal led- up ital cap	Cap ital plus sur	Leg al res erv es	Res es f erv or n sh ow are s	Ow n sh are s	Oth er r ev enu e res erv es	Fair alue v res erv e	Hed ging res erv e	Ret aine d ning ear s	Tota l
As at 3 1 D mbe r 20 17 ece	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	216 ,667 ,051	39,2 95, 125	) (168 ,787	32,1 36,4 98	482 ,912 ,133
Adj dop tion of IFR S 1 ustm ent 5 on a						(307 ) ,807				(307 ,807 )
As at 1 Ja ry 2 018 nua	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	216 ,359 ,244	39,2 95, 125	) (168 ,787	32,1 36,4 98	482 ,604 ,326
Net prof it fo r the riod pe									13,8 51,5 36	13,8 51,5 36
Oth han in peh ive inco er c ges com ens me								(174 ,159 )		(174 ,159 )
Tota l ch in to tal c reh iv e in ang es omp ens com e	0	0	0	0	0	0	0	( 174 ,159 )	13,8 51,5 36	13,6 77,3 77
As at 3 1 M h 20 18 arc	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	216 ,359 ,244	39,2 95, 125	) (342 ,946	45,9 88,0 34	496 ,281 ,704
As at 1 Ja ry 2 019 nua	52,2 40,9 77	80,9 91,3 85	61,7 49,8 84	4,70 8,35 9	70) (2,6 04,6	295 ,680 ,118	39,5 25,5 29	) (621 ,084	50,2 96,1 18	581 ,966 ,615
Net prof it fo r the riod pe									7,19 2,02 3	7,19 2,02 3
Oth han in othe hen sive inc er c ges r co mpe ome								(365 ) ,198		(365 ) ,198
Tota l ch in to tal c reh iv e in ang es omp ens com e	0	0	0	0	0	0	0	( 365 ,198 )	7,19 2,02 3	6,82 6,82 5
As at 3 1 M h 20 19 arc	52,2 40,9 77	80,9 91,3 85	61,7 49,8 84	4,70 8,35 9	70) (2,6 04,6	295 ,680 ,118	39,5 25,5 29	) (986 ,282	57,4 88,1 41	588 ,793 ,440

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 37/62

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

		The Petrol Group		Petrol d.d.
(in EUR)	Note	31 March 2019	31 March 2018	31 March 2019	31 March 2018
Cash flows from operating activities

Net profit Adjustment for:		18,249,034	17,903,204	7,192,023	13,851,536
Corporate income tax		2,615,618	4,109,861	611,903	2,706,761
Depreciation of property, plant and equipment and of investment property	6	13,680,151	10,351,004	8,906,820	6,230,342
Amortisation of intangible assets	6	2,397,167	2,070,800	2,088,998	1,743,343
(Gain)/loss on disposal of property, plant and equipment	2, 7	(120,038)	(36,296)	(100,021)	(82,517)
Impairment, write-down/(reversed impairment) of assets		0	(12,931)	0	0
Revenue from assets under management		(16,129)	(16,350)	(16,129)	(16,350)
Net (decrease in)/creation of provisions for long-term employee benefits		3,040	3,000	0	0
Net (decrease in)/creation of other provisions and long-term deferred
revenue Net goods surpluses		241,207 (309,573)	(899,276) (289,389)	984,080 (128,313)	34,465 (367,522)
Net (decrease in)/creation of allowance for receivables	8	(4,716,067)	(586,095)	(2,532,372)	(900,844)
Net finance (income)/expense	8	2,324,987	1,645,654	2,515,759	1,934,359
Share of profit of jointly controlled entities		(110,184)	(142,445)	-	-
Share of profit of associates		(198,762)	(189,758)	-	-
Finance income from dividends received from associates		-	-	0	(801,029)
Cash flow from operating activities berfore the changes in working
capital		34,040,451	33,910,983	19,522,749	24,332,544
Net (decrease in)/creation of other liabilities	24	4,026,509	3,230,780	4,073,732	2,352,678
Net decrease in/(creation of) other assets	21	(6,428,200)	(2,309,877)	(7,636,251)	(2,307,054)
Change in inventories	17	22,251,047	34,462,173	15,180,109	22,642,093
Change in operating and other receivables and contract assets	19	35,268,862	7,607,894	44,721,815	(2,977,440 )
Change in operating and other liabilities and contract liabilities	23	(65,437,110)	(47,055,171)	(53,193,930)	(48,254,171)
Cash generated from operating activities		23,721,559	29,846,782	22,668,223	(4,211,350)
Interest paid	8	(1,202,383)	(424,801)	(1,106,513)	(480,064)
Taxes paid		(3,017,474)	(2,863,975)	(2,210,313)	(1,352,927)
Net cash from (used in) operating activities		19,501,702	26,558,006	19,351,397	(6,044,341)
Cash flows from investing activities
Payments for investments in subsidiaries	13	(200,576)	(8,361,725)	(600,576)	(9,881,725)
Receipts from investments in subsidiaries	13	0	480,000	0	0
Receipts from intangible assets	10	0	205,472	0	53,808
Payments for intangible assets	10	(1,227,077)	(260,974)	(1,184,270)	0
Payments for lease liabilities	11	(940,114)	0	(117,029)	0
Receipts from property, plant and equipment	12	749,244	352,835	648,352	320,419
Payments for property, plant and equipment	12	(29,549,319)	(17,671,241)	(17,782,929)	(14,855,266)
Receipts from loans granted	18	3,122,559	1,011,755	20,202,231	2,225,897
Payments for loans granted	18	(1,613,191)	(2,198,087)	(24,948,678)	(1,812,356)
Interest received	8	1,393,526	731,445	749,116	665,791
Dividends received from associates		0	801,029	0	801,029
Net cash from (used in) investing activities		(28,264,948)	(24,909,491)	(23,033,783)	(22,482,403)
Cash flows from financing activities
Payments for bonds issued	22	(500,000)	0	(500,000)	0
Proceeds from borrowings	22	53,883,063	182,137,690	134,278,388	249,603,310
Repayment of borrowings Dividends paid to shareholders	22	(40,233,681) (651)	(182,387,010) (358)	(129,561,229) (651)	(225,121,213) (358)
Net cash from (used in) financing activities		13,148,731	(249,678)	4,216,508	24,481,739
Increase/(decrease) in cash and cash equivalents		4,385,485	1,398,837	534,121	(4,045,004)
Changes in cash and cash equivalents
At the beginning of the year		58,740,743	45,492,821	28,986,973	23,651,242
Foreign exchange differences		(51,873)	13,043	-	-
Cash acquired through acquisition of companies		0	1,765,448	-	-
Increase/(decrease)		4,385,485	1,398,837	534,121	(4,045,004)
At the end of the period		63,074,355	48,670,149	29,521,094	19,606,238

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

Notes to the financial statements

Reporting entity

Petrol d.d., Ljubljana (hereinafter the "Company") is a company domiciled in Slovenia. Its registered office is at Dunajska cesta 50, 1527 Ljubljana. Below we present consolidated financial statements of the Group for the period ended 31 March 2019 and separate financial statements of the company Petrol d.d., Ljubljana for the period ended 31 March 2019. The consolidated financial statements comprise the Company and its subsidiaries as well as 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.

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 8 May 2019.

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 2018.

The financial statements for the period from January – March 2019 are prepared based on the same accounting policies used for the preparation of financial statements for the year ended 31 December 2018, considering the implementation of the new standard IFRS 16.

b. Basis of measurement

The Group's and the Company's financial statements have been prepared on the historical cost basis except for the financial instruments that are carried at fair value or amortised cost.

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

The preparation of the financial statements requires management to make estimates and judgements based on the assumptions used and reviewed that affect the reported amounts of assets, liabilities, revenue and expenses. How the estimates are produced and the related assumptions and uncertainties is disclosed in the notes to individual items.

The estimates, judgements and assumptions are reviewed on a regular basis. Because estimates are subject to subjective judgments and a degree of uncertainty, actual results might differ from the estimates. Changes in accounting estimates, judgements and assumptions are recognised in the period in which the estimates are changed if a change affects that period only. If the change affects future periods, they are recognised in the period of the change and in any future periods.

Estimates and assumptions are mainly used in the following judgements:

determining the amount of revenue and the timing of satisfaction of performance obligations,
estimating the lives of depreciable assets,
assets impairment testing,
estimating of the fair value of assets,
estimating of the influence in jointly controlled entities,
estimate of provisions for litigation,
estimate of provisions for employee post-employment and other long-term benefits,
assessing the possibility of using deferred tax assets.

e. Changes in accounting policies

IFRS 16 - Leases

In 2019 the Group supplemented the applicable accounting policies and the treatment of events, together with their presentation in the financial statements, to align them with the requirements of IFRS 16, entered into force on 1 January 2019.

IFRS 16 replaces IAS 17 – Leases and requires lessees to account for all leases under a single on-balance sheet model in a similar way to finance leases. In the statement of financial position of the lessee leased assets are disclosed within fixed assets or as right to use of leased assets in connection with the lease liabilities. Value of the right of use of leased assets transfers through depreciation to expenses, interest expenses from leases increased financial expenses of the period. The standard includes two recognition exemptions for lessees – leases of 'low-value' assets and short-term leases. Lessor accounting is substantially unchanged from accounting under IAS 17.

The Group reviewed and analysed its lease contracts for which the lease terms exceed one year. The Group used the value of the lease and the length of the lease term to assess the value of the right-to-use of leased assets and lease liabilities and recognised them in the statements of financial position as at 1 January 2019. The value of the right-to-use assets and liabilities to make lease payments are assessed by discounting future cash flows over the lease term. Cash flows are discounted at the interest rates achieved by Group companies in financing long-term leases. The depreciation charge is calculated using depreciation rates estimated by taking into account the remaining term of the lease.

The effects of the adoption of IFRS 16 on the statement of financial position of the company Petrol d.d., Ljubljana and the Petrol Group as ta 1 January 2019

	The Petrol Group			Petrol d.d.
			31 December			31 December
(in EUR)	1 January 2019	IFRS 16	2018	1 January 2019	IFRS 15	2018
ASSETS
Non-current (long-term) assets
Investments in associates	63,605,375	63,605,375	0	41,328,797	41,328,797	0
	63,605,375	63,605,375	0	41,328,797	41,328,797	0
Total assets	63,605,375	63,605,375	0	41,328,797	41,328,797	0
EQUITY AND LIABILITIES
Non-current liabilities
Long-term lease liabilities	56,002,832	56,002,832		37,791,190	37,791,190
	56,002,832	56,002,832	0	37,791,190	37,791,190	0
Current liabilities
Current lease liabilities	7,602,543	7,602,543		3,537,607	3,537,607
	7,602,543	7,602,543	0	3,537,607	3,537,607	0
Total liabilities	63,605,375	63,605,375	0	41,328,797	41,328,797	0
Total equity and liabilities	63,605,375	63,605,375	0	41,328,797	41,328,797	0

The effects of the adoption of IFRS 16 on the statement of profit and loss of the company Petrol d.d., Ljubljana and the Petrol Group for the period of 1 January to 31 March 2019

	The Petrol
	Group	Petrol d.d.
(in EUR)	IFRS 16	IFRS 16
Depreciation of right of use assets	2,479,721	1,314,980
Leasee payments	(2,806,274)	(1,540,805)
Operating profit	326,553	225,825
Other finance expensess	698,799	511,063
Profit beofre tax	(372,246)	(285,238)

Comparative information in the statement of financial position as at 31 December 2018 and in the statement of profit or loss for the period of 1 January to 31 March 2019 were not restated upon the introduction of IFRS 16.

IFRS 15 – Revenue from contracts with customers

In 2018 the Group implemented IFRS 15 – Revenue from contracts with customers. Because of the impact of IFRS 15 – Revenue from contracts with customers the Group decreased the amount of revenue from the sale of goods and the cost of goods sold for the period of 1 January to 31 March 2018 as reported in the Report on the operations of the Petrol Group and the company Petrol d.d., Ljubljana in the first three months of 2018 on 18 May 2018 for 31,226,329 EUR.

The effects of the adoption of IFRS 15 on comparative financial data reported for the period of 1 January to 31 March 2018

	The Petrol Group		Petrol d.d.
(in EUR)	Amended	Published	Amended	Published

Sales revenue	1,147,409,126	1,178,635,455	886,472,870	917,699,199
- of which excise duty	1,127,478,553	1,127,478,553	177,058,669	177,058,669
Cost of goods sold	(1,045,252,293)	(1,076,478,622)	(811,350,321)	(842,576,650)

Operating costs	(78,602,567)	(78,602,567)	(56,052,672)	(56,052,672)
Operating profit	25,474,810	25,474,810	19,729,910	19,729,910
Profit before tax	22,013,065	22,013,065	16,558,297	16,558,297

Notes to individual items in the financial statements

1. Segment reporting

In view of the fact that the financial report consists of the financial statements and accompanying notes of both the Group and the Company, only the Group's operating segments are 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 Group's performance.

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 substantial 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 services and production.

Sales consist of:

sales of petroleum products,
sales of merchandise and services,
sales of liquefied petroleum gas (LPG),
sales of and trading in electricity and natural gas.

Energy and environmental services and production consist of:

energy and environmental solutions for the public and the commercial sector,
energy solutions and industry and apartment buildings,
distribution of natural gas,
production of electricity from renewable sources.

The Group's operating segments in the period 1 January - 31 March 2018:

(in EUR)	Sales	Energy and Environmental Solutions and Production	Total	Statement of profit or loss/ Statement of financial position
Sales revenue	1,246,636,984	19,817,804	1,266,454,788
Revenue from subsidiaries	(118,937,288)	(108,374)	(119,045,662)
Sales revenue	1,127,699,696	19,709,430	1,147,409,126	1,147,409,126
Net profit for the year	13,975,428	3,927,776	17,903,204	17,903,204
Interest income*	740,437	271,718	1,012,155	1,012,155
Interest expense*	(1,778,321)	(652,592)	(2,430,913)	(2,430,913)
Depreciation of property, plant and equipment,
depreciation of investment property, amortisation of
intangible assets	(8,858,168)	(3,563,636)	(12,421,804)	(12,421,804)
Share of profit or loss of equity accounted investees	0	332,203	332,203	332,203
Total assets	1,373,281,530	248,451,921	1,621,733,451	1,621,733,451
Equity accounted investees	12,355,333	51,375,369	63,730,702	63,730,702
Property, plant and equipment, intangible assets and
investment property	634,978,173	186,176,996	821,155,169	821,155,169
Other assets	725,948,024	10,899,556	736,847,580	736,847,580
Current and non-current operating and financial
liabilities	693,628,542	125,490,178	819,118,720	819,118,720

*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 January - 31 March 2019:

		Energy and Environmental Solutions and		Statement of profit or loss/ Statement of
(in EUR)	Sales	Production	Total	financial position
Sales revenue	1,453,509,913	22,858,959	1,476,368,872
Revenue from subsidiaries	(115,027,693)	(5,005)	(115,032,698)
Sales revenue	1,338,482,220	22,853,954	1,361,336,174	1,361,336,174

Net profit for the year	12,314,224	5,934,810	18,249,034	18,249,034
Interest income*	716,378	264,972	981,350	981,350
Interest expense*	(2,227,558)	(823,922)	(3,051,480)	(3,051,480)
Depreciation of property, plant and equipment,
depreciation of investment property, amortisation of
intangible assets	(12,015,681)	(4,061,637)	(16,077,318)	(16,077,318)
Share of profit or loss of equity accounted investees	0	308,946	308,946	308,946
Total assets	1,475,291,763	275,863,400	1,751,155,163	1,751,155,163
Equity accounted investees	1,077,837	51,922,885	53,000,722	53,000,722

Property, plant and equipment, intangible assets and
investment property	710,771,940	211,373,764	922,145,704	922,145,704
Other assets	763,441,986	12,566,751	776,008,737	776,008,737
Current and non-current operating and financial
liabilities	741,020,103	138,562,642	879,582,745	879,582,745
*Interest income and expenses are estimated based on a segment's share of investments and assets in total investments and assets.

2. Other revenue

	The Petrol Group		Petrol d.d.
(in EUR)	1-3 2019	1-3 2018	1-3 2019	1-3 2018

Utilisation of environmental provisions	148,952	156,286	148,952	154,984
Gain on disposal of fixed assets	121,895	98,773	100,218	90,948
Compensation, litigation proceeds and contractual penalties	107,191	212,943	66,661	53,026
Compensation received from insurance companies	4,448	14,299	3,168	10,097
Other revenue	2,535,167	1,571,305	374,552	356,807

Total other revenue	2,917,653	2,053,606	693,551	665,862

3. Costs of material

	The Petrol Group		Petrol d.d.
(in EUR)	1-3 2019	1-3 2018	1-3 2019	1-3 2018

Costs of energy	6,276,080	7,147,870	5,391,934	3,599,340
Costs of consumables	1,703,576	1,882,258	1,395,618	1,498,386
Write-off of small tools	46,332	25,253	7,925	12,350
Other costs of materials	138,348	153,722	74,250	81,649

Total costs of materials	8,164,336	9,209,103	6,869,727	5,191,725

4. Costs of services

The Petrol Group		Petrol d.d.
1-3 2019	1-3 2018	1-3 2019	1-3 2018

8,975,879	8,291,751	8,975,879	8,291,751
6,908,073	7,168,015	5,783,610	6,141,496
4,202,411	4,382,988	3,242,661	3,214,096
2,825,854	2,013,703	2,635,401	1,811,636
2,720,466	1,852,877	2,196,405	1,386,593
1,853,765	1,793,409	1,203,427	1,264,103
1,329,696	362,139	1,258,521	197,674
1,129,046	1,012,875	755,543	620,985
625,439	4,089,160	261,781	2,390,446
415,797	443,754	344,977	358,709
387,717	335,117	364,623	298,068
332,186	229,989	198,878	136,324
320,097	320,261	208,119	189,838
116,129	129,289	59,966	70,837
952,048	833,457	447,464	606,075

33,094,603	33,258,784	27,937,255	26,978,631

5. Labour costs

	The Petrol Group		Petrol d.d.
(in EUR)	1-3 2019	1-3 2018	1-3 2019	1-3 2018

Salaries	17,631,594	15,065,442	12,778,894	10,029,183
Costs of pension insurance	1,432,499	1,324,312	1,148,990	984,263
Costs of other social insurance	1,533,530	1,408,000	924,709	792,743
Transport allowance	808,187	708,048	528,844	426,482
Annual leave allowance	681,468	611,619	547,116	444,077
Meal allowance	660,402	588,302	519,992	420,474
Supplementary pension insurance	335,260	296,389	321,151	256,270
Other allowances and reimbursements	769,334	1,372,234	628,006	1,108,762

Total labour costs	23,852,274	21,374,346	17,397,702	14,462,254

6. Depreciation and amortisation

	The Petrol Group		Petrol d.d.
(in EUR)	1-3 2019	1-3 2018	1-3 2019	1-3 2018

Amortisation of intangible assets	2,397,167	2,070,800	2,088,997	1,743,343
Depreciation of property, plant and equipment	13,401,365	10,077,543	8,637,053	5,965,900
Depreciation of investment property	278,786	273,461	269,768	264,442

Total depreciation and amortisation	16,077,318	12,421,804	10,995,818	7,973,685

7. Other costs

	The Petrol Group		Petrol d.d.
(in EUR)	1-3 2019	1-3 2018	1-3 2019	1-3 2018

Environmental charges and charges unrelated to operations	2,006,458	1,169,173	1,406,172	536,013
Sponsorships and donations	781,957	711,300	776,055	697,910
Disposals/impairment of assets	1,857	62,477	197	8,431
Other costs	410,377	395,580	166,570	204,022

Total other costs	3,200,649	2,338,530	2,348,994	1,446,376

8. Other financial income and expenses

	The Petrol Group		Petrol d.d.
(in EUR)	1-3 2019	1-3 2018	1-3 2019	1-3 2018

Gain on derivatives	14,121,934	7,035,613	14,225,189	6,713,504
Allowances for receivables reversed and bad debt recovered	4,806,386	993,526	2,532,625	901,459
Foreign exchange differences	3,229,788	4,204,366	2,941,936	2,282,267
Interest income	980,816	1,012,155	629,481	739,588
Other finance income	35,391	30,292	41,990	56,138

Total other finance income	23,174,315	13,275,952	20,371,221	10,692,955

Loss on derivatives	(24,586,545)	(11,267,462)	(24,540,017)	(10,548,130)
Foreign exchange differences	(4,988,438)	(2,706,906)	(4,629,149)	(1,386,768)
Interest expense	(3,051,480)	(2,430,913)	(2,986,729)	(2,463,305)
Allowance for opertaing receivables	(90,319)	(407,431)	(252)	(615)
Other finance expenses	(289,714)	(257,188)	(200,501)	(266,779)

Total other finance expenses	(33,006,496)	(17,069,900)	(32,356,648)	(14,665,597)

Net finance expense	(9,832,181)	(3,793,948)	(11,985,428)	(3,972,642)

9. Earnings per share

	The Petrol Group		Petrol d.d.
(in EUR)	31 March 2019	31 March 2018	31 March 2019	31 March 2018

Net profit (in EUR)	18,249,034	17,903,204	7,192,023	13,851,536
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	30,723	30,723	24,703	24,703
Number of own shares at the end of the period	30,723	30,723	24,703	24,703
Weighted average number of ordinary shares issued	2,055,578	2,055,578	2,061,598	2,061,598
Diluted average number of ordinary shares	2,055,578	2,055,578	2,061,598	2,061,598

Basic and diluted earnings per share (EUR/share)	8.88	8.71	3.49	6.72

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.

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 45/62

10. Intangible assets

Intangible assets of the Petrol Group

		Right to use concession		Ongoing	Long-term deferred
(in EUR) Cost	Software	infrastructure	Goodwill	investments	expenses	Total
As at 1 January 2018	26,746,392	105,938,314	105,882,081	5,014,512	0	243,581,299
New acquisitions as a result of control obtained	0	430,428	2,589,211	0	1,115	3,020,754
New acquisitions	0	0	0	186,101	74,873	260,974
Disposals/Impairments	(253)	(44,530)	0	(187,337)	0	(232,120)
Transfer from ongoing investments	300,528	840,141	0	(1, 140,669)	0	0
Foreign exchange differences	630	7,219	14,678	284	0	22,811
As at 31 March 2018	27,047,297	107,171,572	108,485,970	3,872,891	75,988	246,653,718
Accumulated amortisation
As at 1 January 2018	(14,393,544)	(43,002,706)	0	0	0	(57,396,250)
New acquisitions as a result of control obtained	0	(1 21,499)	0	0	0	(121,499)
Amortisation	(963,660)	(1,107,140)	0	0	0	(2,070,800)
Disposals/Impairments	252	26,396	0	0	0	26,648
Foreign exchange differences	(450)	(2,878)	0	0	0	(3,328)
As at 31 March 2018	(15,357,402)	(44,207,827)	0	0	0	(59,565,229)
Net carrying amount as at 1 January 2018	12,352,848	62,935,608	105,882,081	5,014,512	0	186,185,049
Net carrying amount as at 31 March 2018	11,689,895	62,963,745	108,485,970	3,872,891	75,988	187,088,489

(in EUR)	Software	Right to use concession infrastructure	Goodwill	Ongoing investments	Long-term deferred expenses	Total
Cost
As at 1 January 2019	32,430,709	110,894,186	108,042,233	3,141,403	148,628	254,657,159
New acquisitions	0		0	1,081,438	145,639	1,227,077
Transfer between asset categories	1,271	2,167,293	0	151,235	(1,002)	2,318,797
Transfer from ongoing investments	135,948	335,479	0	(47 1,427)	0	0
Foreign exchange differences	(576)	(24,590)	(62,716)	(364)	0	(88,246)
As at 31 March 2019	32,567,352	113,372,368	107,979,517	3,902,285	293,265	258,114,787
Accumulated amortisation
As at 1 January 2019	(19,001,884)	(47,584,413)	0	0	0	(66,586,297)
Amortisation	(1,203,179)	(1,193,988)	0	0	0	(2,397,167)
Transfer between asset categories	(1,271)	(929,711)	0	0	0	(930,982)
Foreign exchange differences	357	10,643	0	0	0	11,000
As at 31 March 2019	(20,205,977)	(49,697,469)	0	0	0	(69,903,446)
Net carrying amount as at 1 January 2019	13,428,825	63,309,773	108,042,233	3,141,403	148,628	188,070,862
Net carrying amount as at 31 March 2019	12,361,375	63,674,899	107,979,517	3,902,285	293,265	188,211,341

Intangible assets of Petrol d.d., Ljubljana

	Right to use
	concession		Ongoing	deferred
					Total

26,013,629	81,744,724	89,138,157	4,678,547	0	201,575,057
0	0	0	58,657	74,873	133,530
0	0	0	(187,337)	0	(187,337)
297,947	769,199	0	(1, 067,146)	0	0
26,311,576	82,513,923	89,138,157	3,482,721	74,873	201,521,250

					(47,881,154)
					(1,743,343)
	(34,641,803)	0	0	0	(49,624,497)
11,956,066	47,921,133	89,138,157	4,678,547	0	153,693,903

11,328,882	47,872,120	89,138,157	3,482,721	74,873	151,896,753
	Right to use concession		Ongoing	Long-term deferred
Software	infrastructure	Goodwill	investments	expenses	Total

30,989,916	101,925,472	87,712,518	2,481,083	148,626	223,257,615
0	0	0	1,042,971	141,299	1,184,270
1,271	2,167,293	0	151,235	(1,000)	2,318,799
132,316	253,625	0	(38 5,941)	0	0
31,123,503	104,346,390	87,712,518	3,289,348	288,925	226,760,684

(18,613,326)	(43,570,344)	0	0	0	(62,183,670)
(1,088,550)	(1,000,447)	0	0	0	(2,088,997)
(1,271)	(929,727)	0	0	0	(930,998)
(19,703,147)	(45,500,518)	0	0	0	(65,203,665)
	Software (14,057,563)	infrastructure (33,823,591) (925,131) (818,212) (14,982,694)	Goodwill 0 0	investments 0 0	Long-term expenses 0 0

Net carrying amount as at 31 March 2019 11,420,356 58,845,873 87,712,518 3,289,348 288,925 161,557,020

11. Right to use of leased assets

Right to use of leased assets of the Petrol Group

	Right of use of leased	Right of use of leased	Right of use of leased
(in EUR)	land	buildings	equipment	Total
Cost
As at 31 December 2018	0	0	0	0
Adjustment on adoption of IFRS 16	36,517,278	22,782,507	4,305,590	63,605,375
As at 1 January 2019	36,517,278	22,782,507	4,305,590	63,605,375
New acquistions	0	823,085	117,029	940,114
As at 31 March 2019	36,517,278	23,605,592	4,422,619	64,545,489
Accumulated depreciation
As at 1 January 2019	0	0	0	0
Depreciation	(874,714)	(1,197,048)	(407,959)	(2,479,721)
As at 31 March 2019	(874,714)	(1,197,048)	(407,959)	(2,479,721)
Net carrying amount as at 1 January 2019	36,517,278	22,782,507	4,305,590	63,605,375
Net carrying amount as at 31 March 2019	35,642,564	22,408,544	4,014,660	62,065,768

Right to use of leased assets of Petrol d.d., Ljubljana

	Right of use of leased	Right of use of leased	Right of use of leased
(in EUR)	land	buildings	equipment	Total
Cost
As at 31 December 2018	0	0	0	0
Adjustment on adoption of IFRS 16	36,451,863	1,013,117	3,863,817	41,328,797
As at 1 January 2019	36,451,863	1,013,117	3,863,817	41,328,797
New acquisitions	0	0	117,029	117,029
As at 31 March 2019	36,451,863	1,013,117	3,980,846	41,445,826
Accumulated depreciation
As at 1 January 2019	0	0	0	0
Depreciation	(871,388)	(75,850)	(367,742)	(1,314,980)
As at 31 March 2019	(871,388)	(75,850)	(367,742)	(1,314,980)
Net carrying amount as at 1 January 2019	36,451,863	1,013,117	3,863,817	41,328,797
Net carrying amount as at 31 March 2019	35,580,475	937,267	3,613,104	40,130,846

12. Property, plant and equipment

Property, plant and equipment of the Petrol Group

					Ongoing
(in EUR)	Land	Buildings	Plant	Equipment	investments	Total
Cost
As at 1 January 2018	212,380,212	639,874,317	36,457,138	230,848,417		34,743,016 1,154,303,100
New acquistions as a result of control obtained	0	0	2,022,626	67,506	0	2,090,132
New acquistions	0	0	0	0	6,119,123	6,119,123
Disposals/Impairments	(133,194)	(92,185)	(26,743)	(527,459)	(18,732)	(798,313)
Transfer from ongoing investments	135,389	6,108,774	264,546	4,239,579	(10,748,288)	0
Transfer to investment property	0	(34,695)	0	0	0	(34,695)
Foreign exchange differences	128,173	323,303	0	97,548	17,552	566,576
As at 31 March 2018	212,510,580	646,179,514	38,717,567	234,725,591		30,112,671 1,162,245,923

Accumulated depreciation
As at 1 January 2018	0	(378,484,490)	(19,618,389)	(135,740,713)	0	(533,843,592)
New acquistions as a result of control obtained	0	0	(1 ,054,159)	(30,973)	0	(1,085,132)
Depreciation	0	(5,416,459)	(471,313)	(4,189,771)	0	(10,077,543)
Disposals/Impairments	0	11,099	25,561	444,507	0	481,167
Transfer to investment property	0	2,323	0	0	0	2,323
Foreign exchange differences	0	(120,082)	0	(45,638)	0	(165,720)
As at 31 March 2018	0	(384,007,609)	(21,118,300)	(139,562,588)	0	(544,688,497)

Net carrying amount as at 1 January 2018	212,380,212	261,389,827	16,838,749	95,107,704	34,743,016	620,459,508

Net carrying amount as at 31 March 2018	212,510,580	262,171,905	17,599,267	95,163,003	30,112,671	617,557,426



					Ongoing
(in EUR)	Land	Buildings	Plant	Equipment	investments	Total
Cost
As at 1 January 2019	211,730,212	684,932,935	4,204,588	293,200,053		41,543,233 1,235,611,021
New acquistions	0	0	0	0	14,973,779	14,973,779
Disposals/Impairments	(479,915)	(1,760,287)	(99,606)	(521,233)	(30,420)	(2,891,461)
Transfer between assets categories	0	0	0	(2,169,393)	(151,235)	(2,320,628)
Transfer from ongoing investments	2,368,215	8,125,714	0	4,999,541	(15,493,470)	0
Transfer to investment property	0	(567)	0	0	(63,316)	(63,883)
Foreign exchange differences	(221,748)	(446,579)	(1,250)	(207,522)	(5,746)	(882,845)
As at 31 March 2019	213,396,764	690,851,216	4,103,732	295,301,446		40,772,825 1,244,425,983

Accumulated depreciation
As at 1 January 2019	0	(410,973,941)	(1,908,901)	(169,386,706)	0	(582,269,548)
Depreciation	0	(5,690,272)	(42,028)	(5,189,344)	0	(10,921,644)
Disposals/Impairments	0	1,683,834	98,517	479,904	0	2,262,255
Transfer between assets categories	0	(5,373)	0	933,252	0	927,879
Foreign exchange differences	0	204,107	1,239	99,458	0	304,804
As at 31 March 2019	0	(414,781,645)	(1,851,173)	(173,063,436)	0	(589,696,254)


Net carrying amount as at 1 January 2019	211,730,212	273,958,994	2,295,687	123,813,347	41,543,233	653,341,473
Net carrying amount as at 31 March 2019	213,396,764	276,069,571	2,252,559	122,238,010	40,772,825	654,729,729

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

				Ongoing
(in EUR)	Land	Buildings	Equipment	investments	Total
Cost
As at 1 January 2018	104,270,519	479,686,715	176,240,824	23,106,434	783,304,492
New acquisitions	0	0	0	4,782,715	4,782,715
Disposals/Impairments	(133,042)	(92,185)	(259,303)	(5,184)	(489,714)
Transfer from ongoing investments	132,890	1,170,581	2,700,115	(4,003,586)	0
Transfer to investment property	0	(34,695)	0	0	(34,695)
As at 31 March 2018	104,270,367	480,730,416	178,681,636	23,880,379	787,562,798
Accumulated depreciation
As at 1 January 2018	0	(345,512,369)	(125,134,643)	0	(470,647,012)
Depreciation	0	(3,441,036)	(2,524,864)	0	(5,965,900)
Disposals/Impairments	0	11,099	240,713	0	251,812
Transfer to investment property	0	2,323	0	0	2,323
As at 31 March 2018	0	(348,939,983)	(127,418,794)	0	(476,358,777)
Net carrying amount as at 1 January 2018	104,270,519	134,174,346	51,106,181	23,106,434	312,657,480
Net carrying amount as at 31 March 2018	104,270,367	131,790,433	51,262,842	23,880,379	311,204,021

				Ongoing
(in EUR)	Land	Buildings	Equipment	investments	Total
Cost
As at 1 January 2019	104,358,050	519,362,112	238,043,271	34,074,420	895,837,853
New acquisitions	0	0	0	5,767,250	5,767,250
Disposals/Impairments	(479,915)	(1,748,607)	(372,301)	0	(2,600,823)
Transfer between asset categories	0	0	(2,169,393)	(151,235)	(2,320,628)
Transfer from ongoing investments	14,608	4,519,144	4,066,443	(8,600,195)	0
Transfer to investment property	0	(567)	0	(63,316)	(63,883)
As at 31 March 2019	103,892,743	522,132,082	239,568,020	31,026,924	896,619,769

Accumulated depreciation
As at 1 January 2019	0	(372,918,438)	(156,256,964)	0	(529,175,402)
Depreciation	0	(3,725,630)	(3,596,443)	0	(7,322,073)
Disposals/Impairments	0	1,683,834	368,658	0	2,052,492
Transfer between asset categories	0	(5,373)	933,252	0	927,879
As at 31 March 2019	0	(374,965,607)	(158,551,497)	0	(533,517,104)

Net carrying amount as at 1 January 2019	104,358,050	146,443,674	81,786,307	34,074,420	366,662,451

Net carrying amount as at 31 March 2019	103,892,743	147,166,475	81,016,523	31,026,924	363,102,666

13. Investment in subsidiaries

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

	Petrol d.d.
(in EUR)	2019	2018
As at 1 January New acquisitions	326,416,061 600,576	329,225,470 10,429,326
As at 31 March	327,016,637	339,654,796

14. Investments in jointly controlled entities

	The Petrol Group		Petrol d.d.
(in EUR)	2019	2018	2019	2018
As at 1 January	1,774,437	1,755,182	1,347,380	1,219,000
Attributed profit/loss	110,184	142,445	0	0
Foreign exchange differences	(497)	24	0	0
As at 31 March	1,884,124	1,897,651	1,347,380	1,219,000

15. Investments in associates

	The Petrol Group		Petrol d.d.
(in EUR)	2019	2018	2019	2018
As at 1 January	50,917,836	62,444,322	27,364,454	21,726,406
Attributed profit/loss	198,762	189,758	0	0
Dividends received	0	(801,029)	0	0
As at 31 March	51,116,598	61,833,051	27,364,454	21,726,406

16. Financial assets at fair value through comprehensive income

	The Petrol Group		Petrol d.d.
(in EUR)	2019	2018	2019	2018
As at 1 January	9,168,566	11,173,565	1,374,993	1,689,491

As at 31 March	9,168,566	11,173,565	1,374,993	1,689,491

17. Inventories

31 March 2019	31 December		31 December

	2018	31 March 2019	2018

2,242,808	2,239,389	1,943,902	1,741,223
114,202,059	136,210,314	84,441,047	99,695,522
			66,739,475
			4,639,806
32,479,386	45,581,714	28,443,823	28,316,241
			101,436,745
	80,763,516 959,157 116,444,867	85,266,737 5,361,863 138,449,703	55,930,936 66,288 86,384,949

18. Current financial receivables

	The Petrol Group		Petrol d.d.
		31 December		31 December
(in EUR)	31 March 2019	2018	31 March 2019	2018

Loans granted	9,323,456	11,621,027	6,831,015	16,629,949
Adjustment to the value of loans granted	(2,385,328)	(3,138,789)	0	(6,762,852)
Time deposits with banks (3 months to 1 year)	178,654	183,995	0	0
Interest receivables	1,415,754	1,317,478	5,312,389	5,056,199
Allowance for interest receivables	(1,329,428)	(1,286,215)	(4,919,435)	(4,717,394)
Total current financial receivables	7,203,108	8,697,496	7,223,969	10,205,902

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 51/62

19. Current operating receivables

	The Petrol Group		Petrol d.d.
		31 December		31 December
(in EUR)	31 March 2019	2018	31 March 2019	2018

Trade receivables	532,109,186	569,041,841	364,892,890	415,151,223
Allowance for trade receivables	(50,447,671)	(55,253,217)	(31,914,046)	(34,377,869)
Operating receivables from state and other institutions	3,259,262	9,983,836	223,433	339,968
Operating interest receivables	2,776,421	5,251,106	3,998,632	6,188,670
Allowance for interest receivables	(2,647,827)	(2,726,493)	(2,616,964)	(2,704,962)
Receivables from insurance companies (loss events)	310,382	324,323	182,607	92,276
Other operating receivables	15,867,008	5,440,318	13,537,629	4,026,144
Allowance for other receivables	(406,365)	(384,365)	(22,000)	0
Total current operating receivables	500,820,396	531,677,349	348,282,181	388,715,450

20. Financial assets at fair value through profit or loss

	The Petrol Group		Petrol d.d.
		31 December		31 December
(in EUR)	31 March 2019	2018	31 March 2019	2018

Assets arising from commodity swaps	77,186	2,382,203	77,186	2,382,203
Assets arising from forward contracts	275,004	244,287	275,004	244,287

Total financial assets at fair value through profit or loss	352,190	2,626,490	352,190	2,626,490

21. Prepayments and other assets

	The Petrol Group		Petrol d.d.
		31 December		31 December
(in EUR)	31 March 2019	2018	31 March 2019	2018

Prepayments	42,785,529	39,748,406	32,277,841	30,840,437
Prepaid subscriptions, specialised literature, etc.	1,182,668	1,555,820	1,074,331	1,430,733
Prepaid insurance premiums	181,590	555,305	79,452	359,659
Other deferred costs	15,384,929	8,210,970	9,419,636	1,146,777

Total prepayments and other assets	59,534,716	50,070,501	42,851,261	33,777,606

22. Financial liabilities

	The Petrol Group		Petrol d.d.
		31 December		31 December
(in EUR)	31 March 2019	2018	31 March 2019	2018

Current financial liabilities
Bonds issued	208,247,243	206,857,478	208,247,243	206,857,478
Bank loans	15,524,477	402,394	15,286,347	296,625
Liabilities to banks arising from interest rate swaps	4,430,764	2,867,337	4,188,503	2,710,325
Liabilities to banks arising from commodity swaps	323,409	0	323,409	0
Liabilities to banks arising from forward contracts	21,279	616,807	21,279	616,807
Other liabilities arising from financial instruments	0	0	2,568,846	2,568,846
Other loans and financial liabilities	1,501,261	1,606,196	80,311,805	89,689,238
	230,048,433	212,350,212	310,947,432	302,739,319
Non-current financial liabilities
Bank loans	100,299,354	100,718,823	49,680,107	49,673,683
Bonds issued	43,788,650	43,786,793	43,788,650	43,786,793
Loans obtained from other companies	0	0	28,000,000	28,000,000
	144,088,004	144,505,616	121,468,757	121,460,476

Total financial liabilities	374,136,437	356,855,828	432,416,189	424,199,795

23. Current operating liabilities

	The Petrol Group		Petrol d.d.
		31 December		31 December
(in EUR)	31 March 2019	2018	31 March 2019	2018

Trade liabilities	317,290,940	407,201,206	265,520,067	346,793,608
Excise duty liabilities	59,504,577	57,636,007	51,918,431	51,082,952
Value added tax liabilities	32,874,185	31,793,780	21,545,648	12,741,461
Liabilities to employees	11,664,700	10,108,460	9,968,930	8,688,969
Environment pollution charge liabilities	8,993,030	8,975,111	8,615,526	8,611,245
Other liabilities to the state and other state institutions	4,351,229	2,240,534	2,342,016	383,722
Import duty liabilities	1,589,355	1,709,763	0	0
Liabilities arising from interests acquired	810,000	810,000	560,000	560,000
Liabilities associated with the allocation of profit or loss	625,117	625,605	625,117	625,605
Social security contribution liabilities	162,923	767,499	0	677,781
Other liabilities	4,098,854	1,990,744	1,945,021	1,503,573

Total current operating and other liabilities	441,964,910	523,858,709	363,040,756	431,668,916

24. Other liabilities

	The Petrol Group		Petrol d.d.
		31 December		31 December
(in EUR)	31 March 2019	2018	31 March 2019	2018

Accrued annual leave expenses	2,692,639	2,687,064	1,870,638	1,870,638
Accrued expenses for tanker demurrage	657,869	477,282	657,869	477,282
Accrued concession fee costs	180,266	188,282	180,266	186,738
Accrued motorway site lease payments	106,164	109,149	106,164	109,149
Other accrued costs	22,758,291	17,982,282	8,292,005	3,385,600
Other deferred revenue	2,426,087	3,395,997	2,245,558	3,249,361

Total other liabilities	28,821,316	24,840,056	13,352,500	9,278,768

25. 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.

Credit risk

The Group/Company continued to actively monitor the balances of trade receivables and to apply strict terms on which sales on open account are approved, requiring an adequate range of high-quality collaterals.

Maximum exposure to credit risk represents the carrying amount of financial assets which was the following as at 31 March 2019:

Report on the operations of the Petrol Group and the company Petrol d.d., Ljubljana in the first three months of 2019

	The Petrol Group		Petrol d.d.
		31 December		31 December
(in EUR)	31 March 2019	2018	31 March 2019	2018


Financial assets at fair value through other comprehensive income	9,168,566	9,168,566	1,374,993	1,374,993
Non-current financial receivables	1,457,183	1,466,432	21,388,011	13,605,479
Non-current operating receivables	6,932,709	6,737,751	6,912,664	6,715,315
Current financial receivables	7,203,108	8,697,496	7,223,969	10,205,902
Current operating receivables (excluding receivables from the state)	497,561,134	521,693,513	348,058,748	388,375,482
Financial assets at fair value through profit or loss	352,190	2,626,490	352,190	2,626,490
Cash and cash equivalents	63,074,355	58,740,743	29,521,093	28,986,973

Total assets	585,749,245	609,130,991	414,831,668	451,890,634

The category that was most exposed to credit risk on the reporting date were current operating receivables.

The Group's short-term operating receivables by maturity:

	Breakdown by maturity
		Up to 30 days	31 to 60 days	61 to 90 days	More than 90
(in EUR)	Not yet due	overdue	overdue	overdue	days overdue	Total

Trade receivables	467,697,073	31,379,210	8,446,834	1,198,627	5,066,880	513,788,624
Interest receivables	2,245,808	178,708	25,851	10,926	63,320	2,524,613
Other receivables (excluding receivables from the state)	5,320,690	16,822	16,559	10,825	15,380	5,380,276

Total as at 31 December 2018	475,263,571	31,574,740	8,489,244	1,220,378	5,145,580	521,693,513



			Breakdown by maturity
(in EUR)	Not yet due	Up to 30 days overdue	31 to 60 days overdue	61 to 90 days overdue	More than 90 days overdue	Total

Trade receivables	431,543,931	35,113,464	8,308,436	3,437,368	3,258,316	481,661,515

Interest receivables Other receivables (excluding receivables from the state)	32,040 11,769,385	31,535 3,117,199	24,938 852,301	8,864 7,239	31,217 24,901	128,594 15,771,025

The Company's short-term operating receivables by maturity:

	Breakdown by maturity
		Up to 30 days	31 to 60 days	61 to 90 days	More than 90
(in EUR)	Not yet due	overdue	overdue	overdue	days overdue	Total
Trade receivables	344,367,890	20,474,089	7,127,831	622,434	8,181,110	380,773,354
Interest receivables	1,930,051	160,590	11,378	0	1,381,689	3,483,708
Other receivables (excluding receivables from the state)	4,118,420	0	0	0	0	4,118,420
Total as at 31 December 2018	350,416,361	20,634,679	7,139,209	622,434	9,562,799	388,375,482
			Breakdown by maturity
(in EUR)	Not yet due	Up to 30 days overdue	31 to 60 days overdue	61 to 90 days overdue	More than 90 days overdue	Total

Trade receivables	303,107,456	15,049,161	6,343,894	2,815,247	5,663,086	332,978,844
Interest receivables	0	0	0	0	1,381,668	1,381,668
Other receivables (excluding receivables from the state)	9,817,007	703,447	848,251	0	2,329,531	13,698,236

The Group/Company measures the degree of receivables management using day's sales outstanding:

	The Petrol Group		Petrol d.d.
(in days)	1-3 2019 1-12 2018		1-3 2019	1-12 2018
Days sales outstanding
Contract days	30	31	27	28
Overdue receivables in days	7	7	6	7

Total days sales outstanding	37	38	33	35

Liquidity risk

The Group/Company successfully manages liquidity risks according to Standard & Poor's guidelines.

The Group/Company manages liquidity risks through:

deleveraging (measured as the net debt to EBITDA ratio) as laid down in the strategy and business plan;
ensuring adequate structural liquidity in accordance with S&P methodology;
standardised and centralised treasury management at Group level;
annual planning of funds by the Petrol Group as well as monthly and daily planning;
unified approach to banks in Slovenia and abroad;
computer-assisted system for the management of cash flows of the parent company and all its subsidiaries;
centralised collection of available cash through cash pooling.

Nearly half of the Group's/Company's total cash inflow is generated through its retail network in which cash and payment cards are used as the means of payment. This ensures regular daily inflows and mitigates liquidity risks.

In addition, the Group/Company has credit lines at its disposal both in Slovenia and abroad, the size of which enables the Group to meet all its due liabilities at any given moment.

In the first three months of 2019 the Group/Company again focused strongly on the planning of cash flows. Successful planning of cash flows enabled it to anticipate any liquidity surpluses or shortages in time and manage them optimally.

The majority of financial liabilities arising from long-term and short-term loans are held by the parent company, which also generates the majority of revenue.

			Contractual cash flows
(in EUR)	Carrying amount of liabilities	Liability	0 to 6 months	6 to 12 months	1 to 5 years	More than 5 years
Non-current financial liabilities Non-current operating liabilities (excluding other liabilities) Current financial liabilities Current operating liabilities (excluding liabilities to the state,	144,529,723 24,000 212,350,212	149,961,322 24,000 217,733,091	0 0 217,369,377	0 0 363,714	104,211,813 24,000 0	45,749,509 0 0
employees and arising from advance payments)	410,627,555	410,627,555	410,284,870	342,685	0	0
As at 31 December 2018	767,531,490	778,345,968	627,654,247	706,399	104,235,813	45,749,509

The Group's liabilities as at 31 December 2018 by maturity:

The Group's liabilities as at 31 March 2019 by maturity:

			Contractual cash flows
(in EUR)	Carrying amount of liabilities	Liability	0 to 6 months	6 to 12 months	1 to 5 years	More than 5 years
Non-current financial liabilities Long term lease liabilities Non-current operating liabilities (excluding other liabilities) Current financial liabilities Current lease liabilities Current operating liabilities (excluding liabilities to the state, employees and arising from advance payments)	144,088,004 55,588,834 24,000 230,048,433 6,884,347 322,824,911	149,111,194 55,588,834 24,000 235,063,345 6,884,347 322,824,911	0 0 0 232,950,122 3,425,790 322,344,729	0 0 0 2,113,223 3,458,557 480,182	114,755,445 24,692,334 24,000 0 0 0	34,355,749 30,896,500 0 0 0 0
As at 31 March 2019	759,458,529	769,496,631	558,720,641	6,051,962	139,471,779	65,252,249

The Company's liabilities as at 31 December 2018 by maturity:

				Contractual cash flows
(in EUR)	Carrying amount of liabilities	Liability	0 to 6 months	6 to 12 months	1 to 5 years	More than 5 years
Non-current financial liabilities	121,460,476	125,602,672	0	0	80,843,765	44,758,907
Non-current operating liabilities (excluding other liabilities)	24,000	24,000	0	0	24,000	0
Current financial liabilities	302,739,319	307,802,934	253,437,324	54,365,611	0	0
Current operating liabilities (excluding liabilities to the state,
employees and arising from advance payments)	349,482,786	349,482,786	349,417,777	65,009	0	0
As at 31 December 2018	773,706,581	782,912,392	602,855,101	54,430,620	80,867,765	44,758,907

The Company's liabilities as at 31 March 2019 by maturity:

(in EUR)	Carrying amount of liabilities	Liability	0 to 6 months	6 to 12 months	1 to 5 years	More than 5 years

Non-current financial liabilities	121,468,757	125,527,100	0	0	91,849,287	33,677,813
Long term lease liabilities	37,099,371	37,099,371	0	0	10,019,676	27,079,695
Non-current operating liabilities (excluding other liabilities)	24,000	24,000	0	0	24,000	0
Current financial liabilities	310,947,432	315,265,608	273,606,146	41,659,462	0	0
Current lease liabilities	3,316,712	3,316,712	1,638,342	1,678,370	0	0
Current operating liabilities (excluding liabilities to the state,
employees and arising from advance payments)	268,650,205	268,650,205	268,473,066	177,139	0	0
As at 31 March 2019	741,506,477	749,882,996	543,717,554	43,514,971	101,892,963	60,757,508

Foreign exchange risk

As far as foreign exchange risks are concerned, the Group/Company is mostly exposed to the risk of changes in the EUR/USD exchange rate. Petroleum products are generally purchased in US dollars and sold in local currencies. For government-regulated fuels, hedging is performed in accordance with the Group's foreign exchange risk management policies prepared on the basis of the Decree Setting Prices for certain Petroleum Products, whereas for fuels with market-determined prices, internal Rules on the Pricing of Mineral Fuels are used. Foreign exchange hedging is used to hedge against the exposure to changes in the EUR/USD exchange rate. The EUR/USD exchange rate is thus fixed at the rate recognised under the Decree on Setting Prices for Certain Petroleum Products and the internal rules, and the margin is secured. The hedging instruments used in this case are forward contracts entered into with banks.

Given that forward contracts for hedging against foreign exchange risks are entered into with first-class Slovene banks, the Group/Company considers the counterparty default risk as minimal.

The Group is exposed to foreign exchange risks also due to its presence in South-eastern Europe. Considering the low volatility of local currency exchange rates in South-eastern markets and the relatively low exposure, the Group/Company believes it is not exposed to significant risks in this area. To control these risks, we rely on natural hedging to the largest possible extent.

In the first three months of 2019, the Group/Company was also exposed to certain other currencies (RON, HUF), which were hedged using derivative financial instruments. The Group/Company regularly monitors its open currency position and sensitivity based on the VaR method for all currencies to which it is exposed.

Exposure to the exchange rates on other markets where the Group/Company is present with its companies is either smaller or their rates against the euro are significantly less volatile. We

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 56/62

estimate that the change in the exchange rate would not have a significant impact on the operating profit.

Price and volumetric risk

The Group/Company is exposed to price and volumetric risks deriving from energy commodities. The Group/Company manages price and volumetric risks primarily by aligning purchases and sales of energy commodities in terms of quantities as well as purchase and sales conditions, thus securing its margin. Potential residual mismatches are hedged with derivative financial instruments. Depending on the business model for each energy commodity, appropriate limit systems are in place that limit exposure to price and volumetric risks.

The Group/Company hedges energy commodity prices primarily by using commodity swaps (variable to fixed price swap). Partners in this area include global financial institutions and banks or suppliers of goods. The Group/Company considers the counterparty default risk as minimal.

Interest rate risk

The source of interest rate risks are loans with a floating interest rate that are mostly Euribor based.

In the first three months of 2019, the Group/Company continued to monitor the limit corresponding to changes in net interest expense.

The exposure to interest rate risks is hedged using the following instruments:

partly through ongoing operations, the Group's/Company's interest rate on operating receivables being Euribor-based,
interest rate swaps and
funding with a fixed interest rate.

The Group/Company uses hedge accounting on interest rate swaps. Hedged items and hedging instruments represent an effective hedging relationship, which is why interest rate risk hedging outcomes are recognised directly in equity. In the case of interest rate swaps where an effective hedging relationship does not exist, the effect of interest rate swaps is recognised in the statement of profit or loss.

Capital Adequacy Management

The main purpose of capital adequacy management is to ensure the best possible financial stability, solvency and maximum shareholder value. The Group/Company achieves this also through stable dividend pay-out policy.

Testifying to our financial stability are the »BBB-« credit rating received from S&P at the end of June 2014 and the successful international issuance of eurobonds worth a total of EUR 265 million. On 11 April 2018, Standard & Poor's Ratings Services reaffirmed the »BBB-« longterm credit rating and the »A-3« short-term credit rating of Petrol d.d., Ljubljana, also reaffirming the »stable« credit rating outlook.

In the first three months of 2019 the Petrol Group continued to pursue its strategic orientation to drive down financial debt to levels outlined in the strategic plan.

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 57/62

Carrying amount and fair value of financial instruments

	The Petrol Group
	31 March 2019		31 December 2018
(in EUR)	Carrying amount		Fair value Carrying amount	Fair value
Non-derivative financial assets at fair value
Financial assets at fair value through other comprehensive income Non-derivative financial assets at amortised cost	9,168,566	9,168,566	9,168,566	9,168,566
Financial receivables (excluding derivative financial instruments)	8,660,291	8,660,291	10,163,928	10,163,928
Operating receivables (excluding receivables from the state)	504,493,843	504,493,843	528,431,264	528,431,264
Cash and cash equivalents	63,074,355	63,074,355	58,740,743	58,740,743
Total non-derivative financial assets	585,397,055	585,397,055	606,504,501	606,504,501
Non-derivative financial liabilities at amortised cost
Bank loans and other financial liabilities (excluding derivative fin.instr.)	(369,360,985)	(369,360,985)	(353,395,791)	(353,395,791)
Lease liabilities Operating liabilities (excluding other non-current liabilities and current	(62,473,181)	(62,473,181)	0	0
liabilities to the state, employees and arising from advance payments)	(322,848,911)	(322,848,911)	(410,651,555)	(410,651,555)
Total non-derivative financial liabilities	(754,683,077)	(754,683,077)	(764,047,346)	(764,047,346)
Derivative financial instruments at fair value
Derivative financial instruments (assets)	352,190	352,190	2,626,490	2,626,490
Derivative financial instruments (liabilities)	(4,775,452)	(4,775,452)	(3,484,144)	(3,484,144)
Total derivative financial instruments	(4,423,262)	(4,423,262)	(857,654)	(857,654)

	Petrol d.d.
	31 March 2019		31 December 2018
(in EUR)	Carrying amount		Fair value Carrying amount	Fair value
Non-derivative financial assets at fair value
Financial assets at fair value through other comprehensive income Non-derivative financial assets at amortised cost	1,374,993	1,374,993	1,374,993	1,374,993
Financial receivables (excluding derivative financial instruments)	28,611,980	28,611,980	23,811,381	23,811,381
Operating receivables (excluding receivables from the state)	354,971,412	354,971,412	395,090,797	395,090,797
Cash and cash equivalents	29,521,094	29,521,094	28,986,973	28,986,973
Total non-derivative financial assets	414,479,479	414,479,479	449,264,144	449,264,144
Non-derivative financial liabilities at amortised cost
Bank loans and other financial liabilities (excluding derivative fin.instr.)	(425,314,151)	(425,314,151)	(418,303,817)	(418,303,817)
Lease liabilities	(40,416,083)	(40,416,083)	0	0
Operating liabilities (excluding other non-current liabilities and current
liabilities to the state, employees and arising from advance payments)	(268,674,205)	(268,674,205)	(349,506,786)	(349,506,786)
Total non-derivative financial liabilities	(734,404,439)	(734,404,439)	(767,810,603)	(767,810,603)
Derivative financial instruments at fair value
Derivative financial instruments (assets)	352,190	352,190	2,626,490	2,626,490
Derivative financial instruments (liabilities)	(7,102,037)	(7,102,037)	(5,895,978)	(5,895,978)
Total derivative financial instruments	(6,749,846)	(6,749,846)	(3,269,488)	(3,269,488)

26. Related party transactions

	The Petrol Group		Petrol d.d.
(in EUR)	1-3 2019	1-3 2018	1-3 2019	1-3 2018

Sales revenue:
Subsidiaries	-	-	74,634,949	67,070,290
Jointly controlled entities	290,645	349,154	19,722	23,633
Associates	9,033	86,464	9,033	86,464
Cost of goods sold:
Subsidiaries	-	-	14,656,365	26,061,964
Jointly controlled entities	56,930	114,763	0	0
Associates	0	0	0	0

Cost of materials:
Subsidiaries	-	-	68,707	368,250
Jointly controlled entities	1,373	1,946	267	377
Associates	0	0	0	0
Cost of services:
Subsidiaries	-	-	288,111	330,540
Jointly controlled entities	0	0	0	0
Associates	0	0	0	0

Other costs:
Subsidiaries	-	-	3,053	5,001
Jointly controlled entities	0	0	0	0
Associates	0	0	0	0
Finance income from interests in Group companies:
Subsidiaries	-	-	0	0
Jointly controlled entities	110,184	142,445	0	0
Associates	198,762	189,758	0	801,029
Finance income from interest:
Subsidiaries	-	-	61,866	176,520
Jointly controlled entities	0	0	0	0
Associates	0	0	0	0

Gain of derivatives:
Subsidiaries Jointly controlled entities	- 0	- 0	112,320 0	18,118 0
Associates	0	0	0	0

Other finance income:
Subsidiaries	-	-	41,456	52,881
Jointly controlled entities	534	0	534	0
Associates	0	0	0	0
Finance expenses for interest:
Subsidiaries	-	-	284,223	177,139
Jointly controlled entities	36	0	36	0
Associates	0	0	0	0

Report on the operations of the Petrol Group and the company Petrol d.d., Ljubljana in the first three months of 2019

	The Petrol Group		Petrol d.d.
		31 December		31 December
(in EUR)	31 March 2019	2018	31 March 2019	2018

Investments in Group companies: Subsidiaries	-	-	327,016,637	326,416,061
Jointly controlled entities	1,884,124	1,774,437	1,347,380	1,347,380
Associates	51,116,598	50,917,836	27,364,454	27,364,454

Non-current financial receivables:
Subsidiaries	-	-	20,119,699	12,070,000
Jointly controlled entities	715,000	428,994	870,000	583,994
Associates	0	0	0	0
Current operating receivables:
Subsidiaries	-	-	24,374,768	28,862,210
Jointly controlled entities	491,979	535,081	398,292	373,664
Associates	730	29,341	730	29,341

Current financial receivables:
Subsidiaries	-	-	6,247,591	9,472,676
Jointly controlled entities	200,000	486,006	200,000	486,006
Associates	0	0	0	0
Non-current financial liabilities:
Subsidiaries	-	-	28,000,000	28,000,000
Jointly controlled entities	0	0	0	0
Associates	0	0	0	0

Current financial liabilities:
Subsidiaries	-	-	81,392,462	90,769,896
Jointly controlled entities	1,396,922	1,396,922	1,396,922	1,396,922
Associates	0	0	0	0
Current operating liabilities:
Subsidiaries	-	-	5,371,685	9,607,492
Jointly controlled entities	49,680	25,659	76	342
Associates	202	0	202	0
Current accrued costs and expenses:
Subsidiaries	-	-	139,931	0
Jointly controlled entities	0	0	0	0
Associates	0	0	0	0

27. Contingent liabilities

Contingent liabilities for guarantees issued

	Petrol d.d.		Petrol d.d.
		31 December		31 December
(in EUR)	31 March 2019	2018	31 March 2019	2018
Petrol d.o.o.	109,653,148	120,910,250	73,744,027	71,860,596
Geoplin d.o.o. Ljubljana	28,000,000	28,000,000	3,129,423	6,680,330
Petrol d.o.o. Beograd	10,190,952	8,087,219	535,970	1,082,199
Petrol BH Oil Company d.o.o. Sarajevo	6,613,560	7,613,560	460,260	243,673
Petrol Crna Gora MNE d.o.o.	3,630,000	3,630,000	285,553	225,171
Petrol Trade Handelsgesellschaft m.b.H.	3,000,000	3,000,000	1,800,000	1,800,000
Aquasystems d.o.o.	911,309	911,309	911,309	911,309
Petrol - Energetika Dooel Skopje	0	1,000,000	0	0
Petrol Oti Slovenia LLC	0	500,000	0	181,895
Total	161,998,969	173,652,338	80,866,542	82,985,173
Other guarantees	7,631,256	14,134,206	7,631,256	14,134,206
Bills of exchange issued as security	11,129,534	5,453,593	11,129,534	5,453,593
Total contingent liabilities for guarantees issued	180,759,759	193,240,137	99,627,332	102,572,972

The value of a guarantee issued represents the maximum value of the guarantee issued, whereas the guarantee amount used represents a value corresponding to a company's liability for which the guarantee has been issued.

Contingent liabilities for lawsuits

The total value of lawsuits against the Company as defendant and debtor totals EUR 33,194,501. The Company's management estimates that there is a possibility that some of these lawsuits will be lost. As a result, the Company set aside long-term provisions, which stood at EUR 10.087.333 as at 31 March 2019.

The total value of lawsuits against the Group as defendant and debtor totals EUR 33,651,829. The Group's management estimates that there is a possibility that some of these lawsuits will be lost. As a result, the Group set aside long-term provisions, which stood at EUR 10.297.770 as at 31 March 2019.

28. Events after the reporting date

There were no events after the reporting date that would significantly affect the financial statements for the first three months of year 2019.

APPENDIX 1: ORGANISATIONAL STRUCTURE OF THE PETROL GROUP

The Petrol Group as at 31 March 2019	SALES	ENERGY AND ENVIRONMENTAL SOLUTIONS	PRODUCTION OF RENEWABLE ELECTRICITY

The parent company
PETROL d.d., LJUBLJANA			
Subsisdiaries
PETROL d.o.o. (100%)		
DUBROVNIK PLIN d.o.o. (100%)	
PETROL JAVNA RASVJETA d.o.o. (100%)		
PETROL BH OIL COMPANY d.o.o. Sarajevo (100%)		
PETROL d.o.o. BEOGRAD (100 %)		
PETROL CRNA GORA MNE d.o.o. (100%)	
PETROL TRADE HANDELSGES.m.b.H. (100%)	
BEOGAS INVEST d.o.o. Beograd (100%)		
BEOGAS d.o.o. Beograd (100%)		
DOMINGAS d.o.o. (100%)		
PETROL LPG d.o.o. Beograd (51%)	
TIGAR PETROL d.o.o. (100%)	
PETROL LPG HIB d.o.o. (100%)	
INTRADE ENERGIJA d.o.o. Sarajevo (51%)			
PETROL-ENERGETIKA DOOEL Skopje (100%)	
PETROL BUCHAREST ROM S.R.L. (100%)	
PETROL PRAHA CZ S.R.O. (100%)	
PETROL TRADE SLOVENIJA L.L.C. (100%)	
PETROL HIDROENERGIJA d.o.o. Teslić (80%)			
VJETROELEKTRANE GLUNČA d.o.o. (100%)			
IG ENERGETSKI SISTEMI d.o.o. (100%)	
PETROL GEO d.o.o. (100%)		
EKOEN d.o.o. (100%)		
EKOEN GG d.o.o. (100%)		
EKOEN S d.o.o. (100 %)		
ZAGORSKI METALAC d.o.o. (56%)		
MBILLS d.o.o. (76%)	
GEOPLIN d.o.o. Ljubljana (73.9387%)	
GEOCOM d.o.o. (100%)	
GEOPLIN D.O.O., Zagreb (100%)	
GEOPLIN D.O.O. Beograd (100%)	
ZAGORSKI METALAC d.o.o. (25%)	
Jointly controlled entities
PETROL OTI SLOVENIJA L.L.C. (51%)	
PETROL - OTI - TERMINAL L.L.C. (100%)	
GEOENERGO d.o.o. (50%)		
VJETROELEKTRANA DAZLINA d.o.o. (50%)			
VJETROELEKTRANA LJUBAČ d.o.o. (50%)			
SOENERGETIKA d.o.o. (25%)		
Associates
PLINHOLD d.o.o. Ljubljana (29.6985%)		
		
AQUASYSTEMS d.o.o. (26%)

AI Terminal

Petrol Group

1986_rns_2019-05-20_1e577a00-efd7-4c40-a2bb-2b2dff8c3b3f.pdf

STATEMENT OF THE MANAGEMENT BOARD

INTRODUCTORY NOTES

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

List of acronyms and explanation of financial ratio calculations

HIGHLIGHTS

The Petrol Group's significant performance indicators

Figure 5: Number of employees in the Petrol Group

Figure 2: Net profit or loss of the Petrol group

Figure 4: Volume of petroleum products sold by the Petrol Group

Figure 6: Breakdown of the Petrol Group's investments in the first three months of 2019

BUSINESS REPORT

Operations of the Petrol Group

Figure 7: EBITDA broken down by activity

A. SALES

Sales of petroleum products

Key impacts on operations

Fuel pricing in Slovenia

Fuel pricing in Croatia

Fuel pricing in Bosnia and Herzegovina

Fuel pricing in Serbia

Fuel pricing in Montenegro

Fuel pricing in Kosovo

Changes in oil and petroleum product prices in the world market

Changes in the US dollar to the euro exchange rate

Sales of merchandise and related services

Sales of services

Sales of liquefied petroleum gas

Natural gas sales and trading

Electricity sales and trading

B. ENERGY AND ENVIRONMENTAL SOLUTIONS

C. PRODUCTION OF RENEWABLE ELECTRICITY

Sustainable development

Employees

Figure 11: Changes in the number of employees of the Petrol Group and at third-party managed service stations in the period 2016 – 2019

Employee structure

Training

Investments

Figure 12: Breakdown of the Petrol Group's investments in the first three months of 2019

The quality management system

Social responsibility

Risk management

Price and volumetric risk and foreign exchange risk

Credit risk

Liquidity risk

Interest rate risk

Petrol's shares

Figure 14: Closing price and the volume of trading in Petrol's shares in the first three months of 2019

Table 4: 10 largest shareholders of Petrol d.d., Ljubljana as at 31 March 2019

Table 5: Shares owned by members of the Supervisory Board and the Management Board as at 31 March 2019

Contingent increase in share capital

Dividends

Own shares

Regular participation at investors' conferences and external communication

Credit rating

Business plan for 2019

The Petrol Group's main business targets for 2019:

Events after the end of the accounting period

FINANCIAL REPORT

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

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

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

Statement of changes in equity of the Petrol Group

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

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

Notes to the financial statements

Reporting entity

Basis of preparation

a. Statement of compliance

b. Basis of measurement

c. Functional and presentation currency

d. Use of estimates and judgements

e. Changes in accounting policies

IFRS 16 - Leases

The effects of the adoption of IFRS 16 on the statement of financial position of the company Petrol d.d., Ljubljana and the Petrol Group as ta 1 January 2019

The effects of the adoption of IFRS 16 on the statement of profit and loss of the company Petrol d.d., Ljubljana and the Petrol Group for the period of 1 January to 31 March 2019

IFRS 15 – Revenue from contracts with customers