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Podravka d.d. Interim / Quarterly Report 2014

Jul 28, 2014

2084_10-q_2014-07-28_4716ab1f-bbfd-413e-9069-6b250f00b7c7.pdf

Interim / Quarterly Report

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Koprivnica, 25th July 2014

PODRAVKA D.D.

UNCONSOLIDATED QUARTERLY FINANCIAL REPORT

$1. - 6.2014.$

Podravka Inc., Koprivnica, Ante Starčevića 32, The Commercial Court Varaždin, MBS: 010006549, PIN: 18928523252,
Privredna banka Zagreb d.d., Zagreb, Račkoga 6, IBAN: HR94 2340 0091 1000 9852 6, foundation capital: 1.084.00 President of the Management Board: Z. Mršić, members of the Management Board: J. Ivanković, O. Jakupec, M. Klepač, H. Kolarić

Content:

  • General information $\bullet$
  • Management report on the achieved business results of Podravka $\bullet$ d.d. for the period January - June 2014
  • Unconsolidated financial reports for the period January June 2014 $\bullet$
  • Statement from executives responsible for preparing financial $\bullet$ statements

General information

Podravka prehrambena industrija d.d., Koprivnica, is incorporated in the Republic of Croatia. Today it is included in leading companies in industry operating in the area of South-Eastern and Central and Eastern Europe. The principal activity of the Company comprises production of a wide range of foodstuffs and non-alcoholic beverages.

The Company is headquartered in Koprivnica, Croatia, Ante Starčevića 32.

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

Management Board during 2014:

President Zvonimir Mršić
Member Jadranka Ivanković
Member Olivija Jakupec
Member Miroslav Klepač
Member Jorn Pedersen
Member Hrvoje Kolarić

The unconsolidated financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union ("IFRS").

Koprivnica, 25th July 2014

MANAGEMENT REPORT ON THE ACHIEVED BUSINESS RESULTS OF PODRAVKA D.D. FOR THE PERIOD JANUARY - JUNE 2014

Sales were HRK 832.4 million in the reporting period, 6% down year-on-year basis. A decrease is mainly driven by lower sales on Croatian market which also includes an impact of the discontinued business programmes initiated in 2013.

Gross profit rose by 2% to HRK 305.9 million. Gross profit margin has reached a level of 36.8% representing an increase of 290 bp. These positive indicators are result of favourable raw material pricing trend and lower number of employees in 2013 and first half of 2014.

Total operating costs declined 9% year-on-year to HRK 805.9 million. Significant share of the operating costs make material costs (66%) and employees costs (21%) which have played key role in the operating costs decrease. Material costs declined 6% y-o-y as a result of positive raw material pricing trend, while employees costs decreased 6% supported by lower number of employees as a result of restructuring process.

230 employees have left the company as part of the restructuring process in year 2014, including severance payments in the amount of HRK 31.2 million (1.-6.2013.: HRK 27.2 million). We expect HRK 22.4 million lower personnel costs savings as a result of that process on annual level.

Reported EBITDA rose by HRK 32.4 million to HRK 90.1 million, while EBITDA margin has reached the level of 10.8%.

Net financial costs declined by 4% to HRK 11.2 million due in particular to lower exchange rate differences offset partially by lower gains on swap contract.

Net profit rose by HRK 25.9 million compared with previous year to HRK 33.5 million, despite HRK 31.2 million exceptional items related to severance costs which have affected profitability of reporting period in the short term.

MANAGEMENT BOARD

The total assets value is showing HRK 2,460.8 million, HRK 61.6 million higher compared to 2013 year end.

Significant assets value increase is driven by long-term intangible assets. which came from signed contracts on the transfer of trademarks and recipes between Podravka d.d. and PIK Vrbovec d.d. Podravka d.d. has acquired the PIK Vrbovec canned meat program and brands for further production and sales to all markets. With that acquisition, Podravka significantly increased its market share and has taken a strong second place in the segment of meat pate, with a good position for expansion in regional markets.

The indebtedness as of 30th June 2014 amounts to HRK 907.2 million and has increased by HRK 46.5 million compared to 2013 year end as a result of business expansion financing in the first half of 2014. The net debt as of 30th June 2014 is HRK 824.0 million and is increased by HRK 36.3 million compared to 2013 year end.

Merger of related companies Poni d.o.o., Podravka Inženjering d.o.o., and Koti Nekretnine d.o.o. to company Podravka d.d. was completed according to Commercial Court Varaždin resolution on 2nd January 2014. Merger is prepared according to simplified procedure where overall assets of merged companies is transferred to Podrayka d.d. without liquidation process, without possibility of exchange of shares and without increase of Podravka d.d. share capital.

Podrayka d.d. has also initiated merger of subsidaries Ital-Ice d.o.o. and Lero d.o.o. with Podrayka d.d. This merger will be part of the continuing restructuring measures in order to increase efficiency. The merger is planned to be prepared according to the simplified procedure in a way that the entire assets of the merged companies would be transferred to Podravka d.d. without conducting a liquidation process, without the possibility of share swap and without increase of Podrayka d.d. share capital.

A VERPRident of the Management Board:
INDUSTRIJA d.d. Zvonimir Advertist Advertisers RIVNICA 173

Podravka Inc., Koprivnica, Ante Starčevića 32, The Commercial Court Varaždin, MBS: 010006549, PIN: 18928523252, Privredna banka Zagreb d.d., Zagreb, Račkoga 6, IBAN: HR94 2340 0091 1000 9852 6, foundation capital: 1.084.000.600,00 HRK, paid in full, total number of shares issued: 5.420.003, nominal share value: 200,00 HRK, President of the Supervisory Board: D. Štimac, President of the Management Board: Z. Mršić, members of the Management Board: J. Ivanković, O. Jakupec, M. Klepač, H. Kolarić

Appendix 1
Reporting period:
1.1.2014. to 30.6.2014.
Quarterly financial report of entrepreneur - TFI-POD
03454088
Registration number (MB)
010006549
Identification number of subject (MBS)
18928523252
Personal identification number (OIB)
Issueer company: PODRAVKA prehrambena industrija d.d., KOPRIVNICA
Postal code and place
48000
KOPRIVNICA
Street and number ANTE STARCEVICA 32
E-mail address: [email protected]
Internet adress: www.podravka.com
KOPRIVNICA
Code and name of comune/town
201
Code and county name
6
KOPRIVNIČKO-KRIŽEVAČKA Number of employees 3.074
Consolidated statement
NO
(at quarter end)
NKD/NWC code:
1039
Subsidiaries subject to consolidation (according to IFRS): Headquarters Registration number:
Book keeping service:
Contact person: Brajević Iva
(authorised person for representation)
Phone number: 048 651 228
Fascimile: 048 220 562
E-mail address: [email protected]
Surname and name Mršić Zvonimir
(authorised person for representation)
Disclosure documents:
1. Financial statements (balance sheet, profit and loss account, cash flow statement, statement
shareholders' equity and notes to the financial statements)
Interior monogement Donart
  1. Interim management Report
    3. Statement of responsible persons for preparation of financial statements

(signed by authorised person for representation)

forg

BALANCE SHEET

as at 30.6.2014.

Obligator: Podravka prehrambena industrija d.d., Koprivnica
Item AOP
code
Last year (net) Current year
(net)
h $\overline{2}$ 3 4
ASSETS
A) RECEIVABLES FOR SUBSCRIBED BUT NOT PAID-IN CAPITAL 001
B) LONG-TERM ASSETS (003+010+020+029+033) 002 1.216.973.678 1.253.519.863
I. INTANGIBLE ASSETS (004 to 009) 003 98.325.947 138.892.052
1. Assets development 004
2. Concessions, patents, licences fees, trade and service marks, software and other rights 005 95.339.734 89.166.616
3. Goodwill 006
4. Prepayments for purchase of intangible assets 007
5. Intangible assets in preparation 008 2.986.213 49.725.436
6. Other intangible assets 009
II. TANGIBLE ASSETS (011 to 019) 010 693.485.729 683.794.248
1. Land 011 39.499.992 39.683.036
2. Buildings 012 423.066.363 410.419.510
3. Plant and equipment 013 181.774.393 199.271.425
4. Tools, facility inventory and transport assets 014 5.988.589 5.358.693
5. Biological assets 015 0
6. Prepayments for tangible assets 016 2.356.450 6.795.720
7. Tangible assets in progress 017 40.046.390 21.520.150
8. Other tangible assets 018 753.552 745.714
9. Investments in buildings 019 0
III. LONG-TERM FINANCIAL ASSETS (021 to 028) 020 387.810.822 393.478.783
1. Investments (shares) with related parties 021 375.382.888 372.015.088
2. Loans given to related parties 022 7.583.333 15.416.667
3. Participating interest (shares) 023 907.000 907.000
4. Loans to entrepreneurs in whom the entity holds participating interests 024
5. Investments in securities 025 0
6. Loans, deposits and similar assets 026 3.937.601 5.140.028
7. Other long - term financial assets 027 0
8. Investments accounted by equity method 028 $\Omega$
IV. RECEIVABLES (030 to 032) 029 0 0
1. Receivables from related parties 030 0
2. Receivables from based on trade loans 031 0
3. Other receivables 032 $\Omega$
V. DEFERRED TAX ASSETS 033 37.351.180 37.354.780
C) SHORT TERM ASSETS (035+043+050+058) 034 1.173.654.394 1.199.311.840
I. INVENTORIES (036 to 042) 035 364.525.930 385.023.282
1. Raw-material and supplies 036 96.958.234 108.794.972
2. Work in progress 037 22.927.744 20.009.968
3. Finished goods 038 101.827.104 117.295.401
4. Merchandise 039 56.411.831 63.960.908
5. Prepayments for inventories 040 5.441.050
6. Long - term assets held for sales 041 80.959.967 74.962.033
7. Biological assets 042 0
II. RECEIVABLES (044 to 049) 043 567.831.305 576.993.531
1. Receivables from related parties 044 367.850.454 360.234.032
2. Accounts receivable 045 194.190.983 215.120.692
3. Receivables from participating parties 046 0
4. Receivables from employees and members of related parties 047 716.595 887.535
5. Receivables from government and other institutions 048 4.735.926 381.326
6. Other receivables 049 337.347 369.946
III. SHORT TERM FINANCIAL ASSETS (051 to 057) 050 168.389.169 154.140.491
1. Shares (stocks) in related parties 051 75.125.754 75.125.754
2. Loans given to related parties 052 86.694.897 70.642.683
3. Participating interests (shares) 053
4. Loans to entrepreneurs in whom the entity holds participating interests 054 0
5. Investments in securities 055 5.514.691 8.335.139
6. Loans, deposits, etc. 056 1.053.827 36.915
7. Other financial assets 057 0
IV. CASH AT BANK AND IN CASHIER 058 72.907.990 83.154.536
D) PREPAID EXPENSES AND ACCRUED REVENUE 059 8.633.708 8.007.892
E) TOTAL ASSETS (001+002+034+059) 060 2.399.261.780 2.460.839.595
F) OFF-BALANCE RECORDS 061 593.358.567 610.612.869

$8 - 4$

Obligator: Podravka prehrambena industrija d.d., Koprivnica
Item AOP
code
Last year (net) Current year
(net)
ā 2 $\overline{3}$ 4
LIABILITIES AND CAPITAL
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078) 062 1.134.309.526 1.168.723.357
I. SUBSCRIBED CAPITAL 063 1.084.000.600 1.084.000.600
II. CAPITAL RESERVES 064 44.785.613 44.785.613
III.RESERVES FROM PROFIT (066+067-068+069+070) 065 $-45.842.810$ $-45.842.810$
1. Reserves prescribed by low 066 0
2. Reserves for treasury shares 067 21.761.692 21.761.692
3. Treasury stocks and shares (deduction) 068 67.604.502 67.604.502
4. Statutory reserves 069 0
5. Other reserves 070 0 0
IV. REVALUATION RESERVES 071 0
V. RETAINED EARNINGS OR ACCUMULATED LOSS (073-074) 072 $\bf{0}$ 52.268.530
1. Retained earnings 073 0 52.268.530
2. Accumulated loss 074 Ö
VI. PROFIT/LOSS FOR THE CURRENT YEAR (076-077) 075 51.366.123 33.511.424
1. Profit for the current year 076 51.366.123 33.511.424
2. Loss for the current year 077 0 0
IX. MINORITY INTERESTS 078 0 0
B) PROVISIONS (080 to 082) 079 37,775.002 36.696.162
1. Provisions for pensions, severance pay, and similar liabilities 080 14.955.100 14.971.100
2. Reserves for tax liabilities 081 0 0
3. Other reserves 082 22.819.902 21.725.062
C) LONG - TERM LIABILITIES (084 to 092) 083 527.132.538 735.627.062
1. Liabilities to related parties 084 0 0
2. Liabilities for loans, deposits etc. 085 $\Omega$ 0
3. Liabilities to banks and other financial institutions 086 527.132.538 735.627.062
4. Liabilities for received prepayments 087 0 $\overline{0}$
5. Accounts payable 088 0 $\sim$
6. Liabilities arising from debt securities 089 $\Omega$ 0
7. Liabilities to entrepreneurs in whom the entity holds participating interests 090 $\Omega$ $\overline{0}$
8. Other long-term liabilities 091 0 $\overline{0}$
092 $\Omega$
9. Deferred tax liability
D) SHORT - TERM LIABILITIES (094 to 105)
093 641.787.764 467.699.269
1. Liabilities to related parties 094 44.371.311 42.081.821
2. Liabilities for loans, deposits etc. 095 O
3. Liabilities to banks and other financial institutions 096 336.081.529 175.657.099
097 887.840 0
4. Liabilities for received prepayments 098 225.461.258 190.492.339
5. Accounts payable 099 0 0
6. Liabilities arising from debt securities 100 0 $\bf{0}$
7. Liabilities to entrepreneurs in whom the entity holds participating interests 101 29.095.432 33.261.794
8. Liabilities to employees 102 19.924.769
9. Liabilities for taxes, contributions and similar fees 103 2.260.614
681.138
679.368
10. Liabilities to share - holders 104 $\Omega$ 0
11. Liabilities for long-term assets held for sale 105 2.948.642 5.602.079
12. Other short - term liabilities
E) DEFFERED SETTLEMENTS OF CHARGES AND INCOME DEFERRED TO FUTURE 106 58.256.950
2.399.261.780
52.093.745
2.460.839.595
F) TOTAL - CAPITAL AND LIABILITIES (062+079+083+093+106) 107
G) OFF-BALANCE RECORDS 108 593.358.567 610.612.869
APPENDIX to balance sheet(to be filled in by entrepreneur that prepares consolidated annual financial report)
CAPITAL AND RESERVES
1. Attributed to equity holders of parent company 109 $\overline{0}$ $\mathbf 0$
2. Attributed to minority interest 110 $\overline{0}$ $\mathbf 0$

PROFIT AND LOSS ACCOUNT for the period 1.1.2014. to 30.6.2014.

Obligator: Podravka prehrambena industrija d.d., Koprivnica
Item AOP
code
Last Year Current year
Cumulative Quarterly Cumulative Quarterly
$\overline{z}$ 3 $\boldsymbol{A}$ 5 6
OPERATING REVENUE (112+113) 111 902.571.888 490.104.317 858.019.412 471.039.190
1. Sales revenue 112 888,498,847 480 659.761 832.405,811 454.115.189
2. Other operating revenues 113 14.073.041 9.444.556 25.613.601 16.924.001
II. OPERATING EXPENSES (115+116+120+124+125+126+129+130) 114 883,284,052 469 852 126 805.912.163 422.726.907
1. Changes in value of work in progress and finished products 115 10.081.917 9.851.415 $-8.895.237$ 8.593.513
2. Material costs (117 to 119) 116 565.071.481 315.917.417 532.870.840 279.799.748
a) Raw material and material costs 117 311.306.636 159.183.931 293.253.160 148.098.930
b) Costs of goods sold 118 150.664.447 88.710.073 137.350.376 73.885.276
68.023.413 102,267.304 57.815.542
c) Other external costs 119 103.100,398
3. Staff costs (121 to 123) 120 177,316.821 92.246.370 166.885.427 84.689.021
a) Net salaries and wages 121 109.737.816 56.935.075 99.727.025 49,266,491
b) Cost for taxes and contributions from salaries 122 43.468.724 22.755.590 43,225,752 22.661.338
c) Contributions on gross salaries 123 24.110.281 12.555.705 23.932.650 12.761.192
4. Depreciation 124 42.814.056 21,444.116 35.148.971 17,574,076
5. Other costs 125 61.469.167 20.485.463 67,886.516 24.563.959
6. Impairment (127+128) 126 10.036.097 $\circ$ $-5.989.063$ $-2.158.736$
a) Impairment of long-term assets (financial assets excluded) 127 $\Omega$ $\Omega$ $\theta$ $\Omega$
b) Impairment of short - term assets (financial assets excluded) 128 10.036.097 $-5.989.063$ $-2.158,736$
7. Provisions 129 1.654.464 965.582 335.692 335,692
8. Other operating costs 130 14.840.049 8.941.763 17.669.017 9.329.634
131
III. FINANCIAL INCOME (132 to 136) 28.283.927 17.439.479 16,221.133 10.641.759
1. Interest income, foreign exchange gains, dividends and similar income from related parties 132 6.861.653 2.320,776 4.458.367 1.486.962
2. Interest income, foreign exchange gains, dividends and similar income from non - related parties 133 17.013.607 12.943.186 11.655.555 9.276.097
3. Share in income from affiliated entrepreneurs and participating interests 134 0 C O $\circ$
4. Unrealized gains (income) from financial assets 135 4.408.667 2.175.517 107.211 $-121.300$
5. Other financial income 136 0 $\circ$
IV. FINANCIAL EXPENSES (138 do 141) 137 39.997.012 17.273.136 27,418.906 13.824.991
1. Interest expenses, foreign exchange losses, dividends and similar expenses from related parties 138 10.715.859 7.654.402 2.981.303 2,497.861
2. Interest expenses, foreign exchange losses, dividends and similar expenses from non - related parties 139 29.281.153 9.618.734 24.437.603 11.327.130
3. Unrealized losses (expenses) on financial assets 140 $\Omega$ $\Omega$ 0 0
4. Other financial expenses 141 $\overline{0}$ $\Omega$ 0 $\overline{0}$
142 0 $\circ$
V. INCOME FROM INVESTMENT - SHARE IN PROFIT OF ASSOCIATED ENTREPRENEURS
VI. LOSS FROM INVESTMENT - SHARE IN LOSS OF ASSOCIATED ENTREPRENEURS 143 0 $\circ$
VII. EXTRAORDINARY - OTHER INCOME 144 $\overline{0}$
VIII. EXTRAORDINARY - OTHER EXPENSES 145 $\overline{0}$
IX. TOTAL INCOME (111+131+142 + 144) 146 930.855,815 507 543 796 874.240.545 481.680.949
X. TOTAL EXPENSES (114+137+143 + 145) 147 923.281.064 487.125.262 833.331.069 436.551.898
XI. PROFIT OR LOSS BEFORE TAXATION (146-147) 148 7.574.751 20.418.534 40.909.476 45.129.051
1. Profit before taxation (146-147) 149 7.574.751 20.418.534 40.909.476 45.129.051
2. Loss before taxation (147-146) 150 $\mathbf 0$ $\theta$ $\Omega$ $\circ$
XII. PROFIT TAX 151 7.398.052 7.398.052
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151) 152 7.574.751 20.418.534 33.511.424 37.730.999
153 7.574.751 20.418.534 33.511.424 37.730.999
1. Profit for the period (149-151)
2. Loss for the period (151-148) 154 0 $\circ$ $\Omega$ $\overline{0}$
APPENDIX to P&L account (to be filled in by entrepreneur that prepares consolidated financial report)
XIV. PROFIT OR LOSS FOR THE PERIOD
1. Attributed to equity holders of parent company 155 $\circ$ $\mathbf 0$ $\overline{0}$ $\overline{0}$
2. Attributed to minority interest 156 $\Omega$ $\overline{0}$ $\overline{0}$ $\overline{0}$
STATEMENT OF OTHER COMPREHENSIVE INCOME (IFRS)
I. PROFIT OR LOSS FOR THE PERIOD (= 152) 157 7.574.751 20.418.534 33.511.424 37.730,999
II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAX (159 do 165) 158 0 $\Omega$ $\overline{0}$ $\overline{0}$
1. Exchange differences on translation of foreign operations 159 $\mathbf 0$ 0 $\circ$
2. Movements in revaluation reserves of long - term tangible and intangible assets 160 0 n $\Omega$ $\overline{0}$
3. Profit or loss from reevaluation of financial assets available for sale 161 $\Omega$ $\overline{0}$
4. Gains or losses on efficient cash flow hedging 162 $\Omega$ O $\circ$
5. Gains or losses on efficient hedge of a net investment in foreign countries 163 $\Omega$ 0 $\Omega$ $\circ$
$\Omega$ $\Omega$ $\Omega$
6. Share in other comprehensive income / loss of associated companies 164 $\overline{0}$
7. Actuarial gains / losses on defined benefit plans 165 $\Omega$ $\circ$ $\circ$
III. TAX ON OTHER COMPREHENSIVE INCOME FOR THE PERIOD 166 0 $\overline{0}$
IV. NET OTHER COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (158-166) 167 $\Omega$ 0 $\circ$ 0
V. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (157+167) 168 7.574.751 20.418.534 33.511.424 37.730.999
APPENDIX to Statement of other comprenhensive income (to be filled in by entrepreneur that prepares consolidated financial report)
VI. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD
1. Attributed to equity holders of parent company 169 0 0 0 $\circ$
2. Attributed to minority interest 170 $\Omega$ $\Omega$ $\circ$

$\overline{\mathcal{S}}$

$\tilde{\nu}$

STATEMENT OF CASH FLOWS - INDIRECT METHOD

for the period 1.1.2014. to 30.6.2014.

Obligator: Podravka prehrambena industrija d.d., Koprivnica
Item AOP
code
Last year Current year
$\overline{2}$ 3 4
CASH FLOW FROM OPERATING ACTIVITIES
1. Profit before tax 001 7.574.752 40.909.476
2. Depreciation 002 42.814.056 35.148.971
3. Increase in short term liabilities 003 21.482.000
4. Decrease in short term receivables 004
5. Decrease in inventories 005 28.796.400
6. Other increase in cash flow 006 11.727.000 6.993.991
I. Total increase in cash flow from operating activities (001 to 006) 007 112.394.208 83.052.438
1. Decrease in short term liabilities 008 0 3.163.806
2. Increase in short term receivables 009 41.518.000 11.887.441
3. Increase in inventories 010 $\Omega$ 26.495.287
4. Other decrease in cash flow 011 20.252.000 20.071.210
II. Total decrease in cash flow from operating activities (008 to 011) 012 61.770.000 61.617.744
A1) NET INCREASE IN CASH FLOW FROM OPERATING ACTIVITIES (007-012) 013 50.624.208 21.434.694
A2) NET DECREASE IN IN CASH FLOW FROM OPERATING ACTIVITIES (012-007) 014 0
CASH FLOW FROM INVESTING ACTIVITIES
1. Cash inflows from sales of long-term tangible and intangible assets 015 253.200 2.029.184
2. Cash inflows from sales of equity and debt instruments 016
3. Interests receipts 017 13.464.425 2.220.139
4. Dividend receipts 018
5. Other cash inflows from investing activities 019 40.744.000 9.039.578
III. Total cash inflows from investing activities (015 to 019) 020 54.461.625 13.288.901
1. Cash outflow for purchase of long-term tangible and intangible assets 021 15.954.000 66.532.364
2. Cash outflow for acquisition of equity and debt financial instruments 022 $\Omega$ 16.000
3. Other cash outflow for investing activities 023 162.000 12.007.200
IV. Total cash outflow for investing activities (021 do 023) 024 16.116.000 78.555.564
B1) NET INCREASE IN CASH FLOW FROM INVESTING ACTIVITIES (020-024) 025 38.345.625
B2) NET DECREASE IN CASH FLOW FROM INVESTING ACTIVITIES (024-020) 026 0 65.266.663
CASH FLOW FROM FINANCIAL ACTIVITIES
1. Cash inflow from issuing property and debt financial instruments 027 0
2. Proceeds from the credit principal, promissory notes, borrowings and other loans 028 50.723.000 400.763.584
029
3. Other proceeds from financial activities 030 50.723.000 400.763.584
V. Total cash inflows from financial activities (027 to 029) 031 107.562.000 346.340.637
1. Cash outflow for repayment of credit principal and bonds 032
2. Cash outflow for dividends paid
3. Cash outflow for financial lease
033 1.447.000 344.432
034
4. Cash outflow for purchase of treasury shares
5. Other cash outflow for financial activities 035
036
109.009.000 346.685.069
VI. Total cash outflow for financial activities (031 to 035) 037 54.078.515
C1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES (030-036)
C2) NET DECREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES (036-030) 038 58.286.000
Total increase in cash flow (013 - 014 + 025 - 026 + 037 - 038) 039 30.683.833 10.246.546
Total decrease in cash flow $(014 - 013 + 026 - 025 + 038 - 037)$ 040
Cash and cash equivalents at the beginning of the period 041 41.047.713 72.907.990
Increase of cash and cash equivalents 042 30.683.833 10.246.546
Decrease of cash and cash equivalents 043
Cash and cash equivalents at the end of the period 044 71.731.546 83.154.536

STATEMENT OF CHANGES IN EQUITY for the period 1.1.2014. to 30.6.2014.

Obligator: Podravka prehrambena industrija d.d., Koprivnica
Item Last year Current year
я $\overline{2}$ $\mathbf{3}$
1. Subscribed capital 001 1.084.000.600 1.084.000.600
2. Capital reserves 002 44.785.613 44.785.613
3. Reserves from profit 003 $-45.842.810$ $-45.842.810$
4. Retained earnings or accumulated loss 004 52.268.530
5. Profit or loss for the current year 005 51.366.123 33.511.424
6. Revaluation of long - term tangible assets 006
7. Revaluation of intangible assets 007 $\overline{0}$
8. Revaluation of financial assets available for sale 008 0
9. Other revaluation 009 0
10. Total capital and reserves (AOP 001 do 009) 010 1.134.309.526 1.168.723.357
11. Currency gains and losses arising from net investement in foreign operations 011
12. Current and deferred taxes (part) 012 0
13. Cash flow hedging 013 0
14. Changes in accounting policy 014 0
15. Correction of significant errors in prior period 015 ۵I
16. Other changes of capital 016 52.482.055 34.413.831
17. Total increase or decrease in capital (AOP 011 do 016) 017 52.482.055 34.413.831
17 a. Attributed to equity holders of parent company 018 $\Omega$
17 b. Attributed to minority interest 019 $\vert 0 \vert$

×

Notes:

Accounting policies in year 2014. did not change.

$\sim$

MANAGEMENT BOARD

Koprivnica, 24th July 2014

STATEMENT FROM EXECUTIVES RESPONSIBLE FOR PREPARING FINANCIAL STATEMENTS

Financial statements of Podrayka d.d. for the period January - June 2014 have been prepared in compliance with the Accounting Act of the Republic of Croatia and International Financial Reporting Standards (IFRS) and provide an overall and true presentation of assets, liabilities, profit and loss, financial position and business operations.

Corporate accounting and Taxes: Iva Brajević

torongo

Board Membe Miroslav Klepač

Podravka Inc., Koprivnica, Ante Starčevića 32, The Commercial Court Varaždin, MBS: 010006549, PIN: 18928523252, Privredna banka Zagreb d.d., Zagreb, Račkoga 6, IBAN: HR94 2340 0091 1000 9852 6, foundation capital: 1.084.000.600,00 HRK, paid in full, total number of shares issued: 5.420.003, nominal share value: 200,00 HRK, President of the Supervisory Board: D. Štimac, President of the Management Board: Z. Mršić, members of the Management Board: J. Ivanković, O. Jakupec, M. Klepač, H. Kolarić