Podravka d.d. — Interim / Quarterly Report 2015

Jul 24, 2015

Koprivnica, 24 July 2015

PODRAVKA INC.

UNCONSOLIDATED QUARTERLY FINANCIAL REPORT

FOR 1 – 6 2015 PERIOD

Content:

• General information
• Management report on the achieved business results of Podravka Inc. for the period January – June 2015
• Unconsolidated financial reports for the period January – June 2015
• Statement from executives responsible for preparing financial 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, 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 members as at 30 June 2015

President	Zvonimir Mršić
Member	Olivija Jakupec
Member	Miroslav Klepač
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, 24 July 2015

MANAGEMENT REPORT ON THE ACHIEVED BUSINESS RESULTS OF PODRAVKA INC. FOR THE PERIOD JANUARY – JUNE 2015

Significant events in 1 – 6 2015

Podravka d.d. share capital increase and ESOP¹

On 3 June 2015, the General Assembly of Podravka d.d., among other decisions, adopted the decision to increase the share capital by issuing new regular shares and to introduce ESOP. According to the decision, on 7 July 2015 the subscription of new shares of Podravka d.d. was initiated, in the first round only for the employees of Podravka d.d. and related companies that had the employee status as at 3 June 2015 and in the second round for the shareholders that were registered as shareholders with the Central Depository and Clearing Company as at 3 June 2015. The last day of the second round of the share capital increase was 20 July 2015. The existing shareholders and employees initially subscribed any paid more than 2.26 million of new shares of the total available 1.7 million, which shows great interest in the purchase of Podravka d.d. shares.

The share capital was increased by issuing 1,700,000 new regular shares with individual nominal value of HRK 220.00. New regular shares were issued at the price of HRK 300.00 per share, whereby the amount of HRK 510 million was raised. The raised amount is planned to be used primarily to finance the acquisition of the company Žito d.d., while the remaining amount will be used to invest in business expansion to new markets and to finance the construction of the new solid, semi-solid and liquid drugs factory of Belupo d.d..

As part of the share capital increase process, the ESOP programme was initiated with the aim to further develop employee loyalty through participation in the company's ownership, increase in Podravka's productivity based on medium-term and long-term

¹ Employee Stock Ownership Programme.

PODRAVKA Inc., Koprivnica, Ante Starčevića 32, The Commercial Court in Varaždin, CRN: 010006549, PIN: 18928523252, Privredna banka Zagreb P.L.C., Zagreb, Radnička cesta 50, IBAN: HR94 2340 0091 1000 9852 6, share capital: HRK 1,192,400,660.00, paid in full, total number of shares issued: 5,420,003, nominal share value: HRK 220.00, President of the Supervisory Board: D. Štimac, President of the Management Board: Z. Mršić, members of the Management Board: O. Jakupec, M. Klepač, H. Kolarić

effects of the programme (motivation, efficiency, reliability, commitment...), including employees in share ownership at special terms, connecting employee interests with interests of the owners and creating additional impetus in achieving the company strategy, in the sense of connecting growth interests and profitability on the one hand and long-term benefits for the workers on the other.

Detailed information on the share capital increase and related documents are available on the websites of the Zagreb Stock Exchange (www.zse.hr) and the Podravka Group (www.podravka.hr).

Podravka concluded the agreement on acquiring 51.55% of Žito d.d. shares

As at 21 April 2015, Podravka concluded the Agreement on the acquisition of shares of the company Žito d.d., one of the largest and most prominent producers in the food industry in Slovenia, greatly recognised in the markets of South East Europe. The consortium of sellers is composed of Slovenski državni holding d.d. and Modra zavarovalnica, d.d., KD Kapital, d.o.o., KD Skladi, d.o.o., Adriatic Slovenica, d.d. and NLB Skladi, d.o.o.

Based on the Agreement, and after receiving an approval from the authorised Agencies for the protection of market competition and after meeting the contractual terms and conditions, Podravka will acquire the majority package of 51.55 percent of regular shares of Žito, at the price of EUR 180.1 per share, i.e. for the total amount of EUR 33,027,818. After acquiring the majority package, Podravka will, in accordance with the regulations of the Republic of Slovenia, be obliged to submit a binding bid for the remaining shares of Žito whereby, depending on the interest of the remaining shareholders to sell shares, the total value of the transaction possibly increases to EUR 57,670,361.

With the stated acquisition, Podravka consolidates its position and becomes a leader in several additional product categories – significantly improving its market position.

After this transaction is completed, the Podravka Group will be at the top of the food industry in the market of Slovenia, with total annual revenue amounting to approximately HRK 900 million. Total consolidated annual revenue of the Podravka Group after the takeover of Žito will be approximately HRK 4.5 billion.

Podravka and Žito have a very complementary product range – food products with similar models of production, sales, promotion, distribution and logistics. Žito has a wide portfolio of recognisable brands holding the leading or the second positions in the market, such

as the umbrella brand Žito (flour and bakery products), Zlato polje (rice, pasta, mill products), Maestro (monospices), 1001 Cvet (teas), Natura (cereals and pulses), Gorenjka (chocolate), Šumi (candies).

Extending the business in complementary product groups, opportunities are created for the production, and sales and marketing synergies, improving the operational efficiency of both companies and increasing their competitiveness. It is particularly worth emphasising that this opens the possibility of selling Žito products through the Podravka's sales and distribution network in more than 20 countries around the world.

New organization of markets management and further strengthening of international operations

In the Podravka d.d. Management Board meeting held on 13 January 2015, the decision was made to form new market regions and to further strengthen business internationalization. There are four newly-formed regions: the Adria region including the market of Croatia and the previous South East Europe market, the Europe region including the previous markets of Western Europe and Central Europe, the Russia, CIS and Baltic region and the New markets region including America, Asia, Australia and Africa. The new organisation of markets management significantly simplifies the previous markets management complexity, increases the opportunities for a more efficient utilisation of own size and knowledge and provides a better and more cost-efficient support to markets where the Podravka Group operates.

One of the preconditions for the commencement of operations in international markets estimated as very potent was to register Podravka's company in Dubai (United Arab Emirates), Dar es Salaam (Tanzania) and the representative office in Beijing (China).

Podravka's decision to initiate the procedure for merging Danica d.o.o.

Continuing the implementation of measures to improve operational efficiency, Podravka's management made the decision to initiate the procedure for merging the limited liability subsidiary DANICA d.o.o.

Podravka's meat industry Danica d.o.o. has been operating as a separate entity for twenty years. After conducting business analyses of all business programmes within the Podravka Group, it was determined that by integrating Danica d.o.o., i.e. the meat programme, into the Podravka's food and drinks segment, a better focus on the development of this programme will be achieved, together with additional savings in

almost all business processes, and thus presuppositions for better management of this business programme will be created.

Certain restructuring measures, i.e. business rationalisation, have been implemented in Danica d.o.o. over the past three years. Financial business indicators have been improved, and further improvements can be achieved through the full integration of the meat programme into the Podravka's food segment.

It is planned that the full integration process be completed by the end of September 2015. The intention of this merger is to advance the development of Podravka's meat cans and meat products portfolio and to generate additional funds for strengthening the competitive position of this production programme on the increasingly demanding market.

Mirna d.d.'s account unblocked

On 25 August 2014, at public auctions for the sale of shares of Mirna d.d. through the trading system of Zagrebačka burza d.d. in the procedure of out-of-court settlement, Podravka d.d. acquired 198,209 shares of Mirna d.d., which represents 53.9% of the total issued shares of the company. Podravka d.d. acquired shares of Mirna d.d. at HRK 38.02 per share, or for a total of HRK 7.5 million. The shares of the company carried the voluntary lien on behalf of Podravka d.d. as security for loans granted by Podravka during 2009.

By acquiring these shares, on 29 September 2014 Podravka d.d., in accordance with the Act on the Takeover of Joint Stock Companies, issued a bid for taking over the remaining shares of Mirna d.d. at the price of HRK 38.02 per share, other than those carrying pledges. The takeover bid was accepted by seven shareholders, whereby Podravka d.d. acquired additional 37,153 shares, or additional 10.09% of the total issued shares of Mirna d.d. Following the takeover bid, Podravka d.d. became the holder of 235,362 shares of Mirna d.d. or 63.95% of the total issued shares.

In December 2014, Management of Mirna d.d. submitted a request to initiate the prebankruptcy settlement proceeding following the freezing of Mirna d.d. account, which was rejected. However, as at 29 January 2015, the Commercial Court in Rijeka decided to initiate the preliminary procedure for determining whether the conditions are met for initiating the bankruptcy procedure of the company Mirna d.d. As part of this, the temporary bankruptcy manager was appointed, and the hearing was scheduled for 30 March 2015.

At the hearing held as at 30 March on the Commercial Court in Rijeka it was established that there are no longer reasons to initiate the bankruptcy procedure over Mirna d.d. from Rovinj. Considering that by the completion of the preliminary procedure, the debtor Mirna d.d. became solvent as its account was unblocked, reasons envisaged by law for further bankruptcy procedures are no longer valid. Podravka d.d. as the majority shareholder of Mirna d.d. directly settled a significant amount of due claims by Mirna d.d. and provided guarantees for settling other claims by the creditors of Mirna d.d. which are registered in the register of FINA. This creates preconditions for further normal operations of Mirna d.d.

On 9 July 2015, Podravka acquired additional 11.64% shares of the company Mirna d.d., reaching 75.59% ownership share in the company.

Key business highlights of 1 – 6 2015

The first half 2015 has brought HRK 844.9 million of sales revenues, 1.5% higher compared to the same period last year. Growth was mainly driven by Soups subcategory in Adria region as a result of sales of wider range of soups assortment in retail stores.

Total operating expenses fell by 0.2% to HRK 804.1 million helped by HRK 31.2 million missing severance costs burden from the first half of 2014. Without severance payments impact, operating costs are showing an increase, coming from activities related to Žito and Mirna Inc. acquisitions.

Operating profit stepped-up by 39.5% to HRK 72.7 million strongly impacted by 2014 severance costs included in 2014 operating result.

Net financial income in the amount of HRK 8.7 million includes recognition of income coming from the fair valuation of the land invested into Belupo Inc. share capital increase, while last year's comparative period recorded net financial expenses in amount of HRK 11.2 million.

As a result of all mentioned above the Company recorded net profit in amount of HRK 69.3 million in the first half of 2015.

Podravka Inc. total assets as at 30 June 2015 were HRK 2,633.9 million which is HRK 51.2 million higher when compared to the 2014 year end. The most significant changes occurred in trade receivables and cash and cash equivalents. Trade receivables increased by 8.9% as a result of their seasonality since the Company is traditionally

showing an increase in sales orders during pre-summer season comparing to the year end. At the same time cash and cash equivalents decreased by HRK 72.7 million compared to the end of 2014, which is explained later in this section. On the liabilities side, long term liabilities to banks and other financial institutions decreased following the repayment of a portion of long term liabilities. Simultaneously, short term liabilities to banks and other financial institutions increased as a result of new short term loans for maintaining expected liquidity levels in the first half of 2015. New short term loans were, among others, used to settle due liabilities of Mirna Inc. in order to avoid bankruptcy proceedings, as well as for financing Žito acquisition pre-activities. Share capital was increased following the General assembly decision to reinvest part of 2014 net profit from 3 June 2015. In accordance with that decision, nominal value of Podravka Inc. shares was increased from HRK 200.00 to HRK 220.00, which resulted with 10.0% share capital increase compared to 2014 year end.

Cash flow from business activities was negative HRK 22.2 million in the first half of 2015 as a result of increased short term receivables connected to the acquisition activities. At the same time cash flow from investing activities was negative HRK 37.4 million mostly as a result of capital expenditures, while cash flow from financing activities was negative HRK 13.1 million mostly as a consequence of higher repayments than received loans. Received and repaid loans were related to usual credit activities that involve short term loans for liquidity, partial repayment of credit liabilities and other standard credit activities, including activities related to the Mirna Inc. and Žito acquisition. Altogether in the first half of 2015 cash and cash equivalents decreased by HRK 72.7 million resulting in HRK 16.1 million of cash and cash equivalents as at 30 June 2015.

President of the Management Board:

Zvonimir Mršić

UNCONSOLIDATED FINANCIAL REPORTS FOR THE PERIOD JANUARY – JUNE 2015

PODRAVKA Inc., Koprivnica, Ante Starčevića 32, The Commercial Court in Varaždin, CRN: 010006549, PIN: 18928523252, Privredna banka Zagreb P.L.C., Zagreb, Radnička cesta 50, IBAN: HR94 2340 0091 1000 9852 6, share capital: HRK 1,192,400,660.00, paid in full, total number of shares issued: 5,420,003, nominal share value: HRK 220.00, President of the Supervisory Board: D. Štimac, President of the Management Board: Z. Mršić, members of the Management Board: O. Jakupec, M. Klepač, H. Kolarić

Appendix 1 Reporting period:		1.1.2015.	bā	30.013.2018
	Quarterly financial report of entrepreneur - TFI-POD
Registration number (MB)	03454088
Identification number of subject (MBS)	010006549
Personal identification number (OIB)	18928523252
Issueer company: PODRAVKA preficamberia industrija d.d., KOPRIVNICA
Fostal code and place	48000		KOPRIVNICA
Street and number ANTE STARCEVICA 32
	E-mail address: podravka@podravka.hr
internet adverse www.podrawka.com
Code and name of comunations	KOPRIVNICA 201
Code and county name	ë	KOPRIVNČKO-KRIŽEVAČKA		Number of employees (at quarter end)	2994
Consolidated statement	NO			NKD(NWIC 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: 648 651 228	Fascimile: 048 220 562
E-mail address Ma Brainvic@codrawin.hr
Sumame and name Mrsić Zvonimir
authorised person for representation)

	ADP
Elisiv		Lost Year		Conventional
		Curristative	Quarterly	Curricultus	Quarterly
	а
LOPERATING REVENUE (112+113)	111	848-019-410	471,858,7	E765.24.4.700	457,930,750
1. Salos revenue	112	R32 435 91	454 115 188	BILE BOY DAS	440.228.708
2. Other operating revenues	113	25 6/13 80	16 9GH 001	$21.843$ TC	TT.608 934
8. OPERATING EXPENSES (115+116+120+124+125+126+120+130)	114	908/912.468	422-706.067	804,003,042	427,726,905
1. Changes in value of work in progress and Trished products	115	A BAS STO	8,593,613	11.517.481	7.191949
2. Naterial costs (117 to 119)	116	\$32,830,646	279 799 pad	5.05.378.456	785, 581, 070
a) Raw maturial and material costs	117	205235 Tup	146,998,930	1981-491 859	80.113.782
b) Costs of goods sold	118	STESSIO STE	73,665,276	1422-833-644	76,839,330
() Other external costs	55%	102.267.504	43,815,622	1008108-0163	59.553 941
3. Staff costs (121 to 122)	120	MAJ085.427	84,699,021	108.577.004	III.204.545
a) Not salaries and wages	921	99.327.ppt	48,266,497	051.26 < .653	49.857.160
b) Cost for taxes and contributions from salaries	122	23.226 psg	22.681.538	48.793 618	22-sep rms
() Cantifoutions on gross solaries	523	27gcp gas	12,761.193	24,489,321	12 yrs.pas
4. Depreciation	124	35146 ST1	17.534.076	39,582,014	20 Y17 AW
5. Other costs	125	ET 656.5%	24.583.659	08 915 876	25 91s.xw
6. Impelment (127+125)	126	-5.989.063	$-1.158.736$	404.627	427.155
a) Impairment of long-term assets (financial assets encluded)	527
b) impointment of short - term assets (financial assets excluded)	128	A 580 B/3	STRATE	JOLESS	417.1es
7. Provisions	129	335,690	235 RK
8. Other operating costs	130	17,668.5%	5.329.634	350 585 656	8.799.324
IL FINANCIAL INCOME (132 to 136)	131	16.121.153	18, 641, 750	DYANASSY	23.845.023
1. Interest incorne, foreign exchange gains, dividends and similar incorse from related parties	135	4.495,957	1,488,642	25,082,373	3.467 pm
2. Interest troons, foreign exchange gains, dividends and similar income from non-related parties	133	11,650,558	6.276.007	11.115.800	7.528.000
3. Share in income from affiliated entrepreneurs and participating interests.	134			11564.338	11.58.6.338
4. Unnealized gains discorsed from Skancial assets.	136	107.211	$+11.566$	1,347,606	1,547,698
5. Other financial Income	138
IV. PINANCIAL EXPENSES (135 de 141)	133	57.4 10.806	13, 854, 891	218.266.000	12/542.887
1. Interest copieses, foreign exchange losses; dividends and similar expanses from related parties	138	2 881 383	2,497,905	3105.813	3,308.500
2. Interest expenses, foreign exchange losses, dividends and similar expenses from non - related parties	138	24.457.603	11.5ZT 1w	19,474,652	9.535.029
3. Unrealized losses (expenses) on financial assets	148				-380.371
4. Other financial expertists	141	a
INCOME FROM INVESTMENT - SHARE IN PROFIT OF ASSOCIATED ENTREPRENEURS v.	143	ä			ä
LOSS FROM INVESTMENT - SHARE IN LOSS OF ASSOCIATED ENTREPREMEURS ٧L	143	ä			ä
EXTRAORDINARY - OTHER INCOME VE.	144	a	ø
EXTRAORDINARY - OTHER EXPENSES VEL.	148
TOTAL INCOME (111+131+142+144) W.	146	KILSUD 645	451-580-848	00303708-064	481.071.354
TOTAL EXPENSES (114+137+143 + 145) x.	147	020321-009	436.581.898	127.366.637	603271.712
at PROFIT OR LOSS BEFORE TAXATION (146-147)	148	40,605,476	48.120.851	81.506.127	41.536.982
1 Profit before taxation (146-147)	149	40.000.416	45, 120, 851	81,508.127	41,505,982
2. Loss before taxation (147-146)	198
XE. PROFIT TAX	151	7,368,063	7.580.852	11-994-321	11,834,371
XIII. PROFIT OR LOSS FOR THE PERIOD (149-151)	152	35511434	37.730.898	BGL3A4 ABS	29.111-061
1. Profit for the poned (149-151)	153	33:511.434	37, 130, 898	\$0,344,006	29.311.00
2. Loss for the pariculi (151-146)	154	n	٠
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
2. Attributed to minimity interest	188		ä
STATEMENT OF OTHER COMPREHENSINE INCOME (FRE)
L PROFIT OR LOSS FOR THE PERIOD (= 152)	557	33.511.434	37.130.MM	DOM: NO	20.37.1887
II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAX (199 do 195)	658		ö
1. Exchange distensions on translation of foreign operations	155		$\alpha$	Ô
2. Movements is revoluction reserves of leng - term tangible 36d intangible assets	190		ol	ö
3. Profit or loss from reevaluation of financial assets available for sale	191		ä	ö	9
4. Gains or lesses on efficient cash flow hedging	162		al	ю	ij
5. Gains or lesses on efficient hedge of a not investment in foreign countries	183		꼐	ö	q
6. Share in other comprehensive income I loss of associated companies.	164		o		ø ò
7. Actuarial gains / losses on defined benefit plans.	165		ol		ö
BI, TAX ON OTHER COMPREHENSIVE INCOME FOR THE PERIOD	195		a
IV. RET OTHER COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (158-188)	957
V. COMPREHENSIVE INCOME OR LOSS FOR THE PERICO (4 ST+1c7)	188	33.51f.424	37,738,980	05:314.006	29.311.061
APPENDIX in Statement of other comprenhensive income (to be filled in by antropressur that 20020788 connelidated financial report) VI, COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD
1. Altributed to equity holders of parent company	168
2. Attributed to minority triberest	171
					ø

	ADP		Corrent vaar
Hem	onda	Leat year (net)	(bel)
a	团	围	運
ASSETS AI RECEIVABLES FOR SUBSCRIBED BUT NOT PAID-IN CAPITAL	881	D.	ũ.
B) LONG-TERM ASSETS (003+010+020+029+033)	662	1216351000	1.212.854.365
L INTANGIBLE ASSETS (004 to 008)	003	131.249.657	129,992,122
1. Assets development	004		ò
2. Concessions, patents, licences fees, trade and service marks, software and other rights	005	123,959,977	114.611.858
3. Gondwill	006		ñ
4. Preseverents for purchase of intendible assets	DOT		b
5. Interigible assets in genocration.	me	7,000,000	15.383.274
6. Other intensible assets	oon		ň
II, TANGIBLE ASSETS (011 to 019)	OID	0003007.400	660. This year.
1. Land	011	39.600.5%	38,379,651
2. Buildings	012	397 666 804	387.703.772
3. Plant and equipment	D13	190.426.114	201.136.260
4. Tools, facility inventory and transport assets	014	7.710.488	8.664.237
5. Biological assets	D15		倒
6. Preseyments for tangible assets	OVE	880,788	3.199.465
7. Tampible asserts in programs	017	58 006 088	48.444.127
8. Other tangible associa-	O18	230,875	730,037
9. Investments in buildings		ġ
III. LONG-TERM FINANCIAL ASSETS (021 to 028)	019
1. Investments (shares) with related parties	628	452,626,748 372.392.313	488.994.416
2. Loans eiven to related parties	691	73,280,000	388,495,038
3. Participating interest (shares).	022		BASICTERS
4. Loans to entrepreneurs in whom the entity holds participating interests	623	$2 - 3 + 9 + 756$	917,538
5. Investments in socialities	624
6. Loans, deposits and similar assets:	625
7. Other long - term financial asserts	626	4 864 640	4.030.255
	827		ğ.
8. Investments accounted by equity method IV: RECEIVABLES (030 to 032)	028		ä
	029	ū	à
1. Receivables from related parties	030	ö	ö
2. Receivables from based on trade loans	031		ä
3. Other receivables	032		ō
V. DEFERRED TAX ASSETS	033	16.965.046	35 332 280
C) SHORT TERM ASSETS (035+043+050+058)	034	1,257,415,768	1.253.600.459
I INVENTORIES (036 to 042)	035	S205.073.0003	637,873,697
1. Rese-material and supplies:	038	117.495.771	129.506.907
2. Wrank in three most	037	27.483.009	19.21 s. http
3. Finished opods	038	114,038,787	1281725-501
4. Menchandise	039	67,434,584	59,534,515
5. Prepayments for inventories	040	ń
6. Long - term assets held for seles	041	209.71p.ppp	205/294.821
7. Biological assets	042
II, RECEIVABLES (044 to 049)	043	574,902.173	0201000300
1. Receivables from related parties.	044	355, 862, 555	375, 384, 786
2. Accounts receivable	045	178.896.430	222 448 878
3. Receivables from participating parties.	DAG	Ιū
4. Receivables from employees and mambers of related parties	047	GGS 4450	033,290
5. Receivables from government and other institutions.	D48	5.765.821	487,859
6. Other renessables	DAIL	32, 808, 534	27.020.084
II, SHORT TERM FINANCIAL ASSETS (651 to 057)	050	57,652,190	33.923.186
1. Shares (stocks) in related parties.	051	sh hati	20,000
2. Loans given to related parties	052	54.672.815	68,909,253
3. Participating interests (shares)	051	ö
4. Loans to entrepreneurs in whom the entity holds participating	054
5. Investments in securities	055	476,000	1.746.938
6. Loans, deposits, atc.	666	2.483.375	1,955,835
7. Other financial assets.	657		291,174
IV. CASH AT RANK AND IN CASHER	658	BB 785.415	18.106.831
PREPAID EXPENSES AND ACCRUED REVENUE lоï	059	8.456.397	67.230.049
II) TOTAL ASSETS (001+002+034+058)	060	2,882,722,185	2.623.884.673
F) OFF-BALANCE RECORDS	001	608,580,439	805.272.903

PODRAVKA Inc., Koprivnica, Ante Starčevića 32, The Commercial Court in Varaždin, CRN: 010006549, PIN: 18928523252, Privredna banka Zagreb P.L.C., Zagreb, Radnička cesta 50, IBAN: HR94 2340 0091 1000 9852 6, share capital: HRK 1,192,400,660.00, paid in full, total number of shares issued: 5,420,003, nominal share value: HRK 220.00, President of the Supervisory Board: D. Štimac, President of the Management Board: Z. Mršić, members of the Management Board: O. Jakupec, M. Klepač, H. Kolarić

Obligator: Podravka prehrambena industrila d.d., Koprivnica
Ham.	真白料 code	Land wour truck	Convinct year TAND
ä	冨	3	$\overline{\mathcal{A}}$
LIABILITIES AND CAPITAL
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078)	862	1.330 863 966	1.406.967.820
L'SUBSCRIBED CAPITAL	865	1.084.000.600	1-102.400.000
# CAPITAL RESERVES	064	48.763.781	46.223.417
ILRESERVES FROM PROFIT 10054057-05540594070	065	6.623.313	99.098.020
1. Reserves prescribed by low	066	2:568.366	12.661.998
2. Reserves for treasury shares	067	67,604,502	147,604,502
3. Treasury stocks and shares (deduction)	DSB	67,614,502	67,305,062
4. Statutory reserves	DAR		Ù
5. Other reserves	070	2,056,007	RINAKINO
IV. REVALUATION RESERVES	071		b
V. RETANDO FARNINGS OR ACCUMULATED LOSS (073-074)	672	902,403	902,407
1. Retained caminos	673.	902,457	Gri 2 Arist
2. Accumulated loss.	074		D
VI. PROFIT/LOSS FOR THE CURRENT YEAR (076-077)	075	2011/07/1837	49.344.806
1. Profit for the current year	676	201.073.637	69.344.606
2. Loss for the current waar	877	o	Ď
DC MINORITY INTERESTS	678	o	Ď
B) PROVISIONS (688 to 682)	679	20,639,209	28.640.072
1. Provisions for pensions, severance pay, and similar liabilities	089	14.400.800	14,400,800
2. Recomvers for tax liabilities.	081	ö	石
3. Other reserves.	682	18:028-409	14:189.172
C) LONG - TERM LIABILITIES (084 to 092)	083	694,656,322	618.078.229
1. Liabilities to related continu-	084	o	۵
2. Liabilities for loans, deposits etc.	085	Ю.	ó
3. Liabilities to banks and other financial institutions		FRA 684, 300
	000		618.078.779
4. Liabilities for received precevatents	687	d $\ddot{\text{o}}$	ģ. ò
5. Accounts pavable	088
6. Liabilities arising from debt securities	469	Q	ö
7. Liabilities to entrepreneurs in whom the entity holds par	693		$\mathfrak{a}$
8. Other long-term liabilities	891		ä
9. Deferred tax liability	692	iÓ.
D) SHORT - TERM LIABILITIES (094 to 105)	893	473.988.131	5207-836-048
1. Liabilities to related parties	094	60,437.132	25.079.697
2. Liabilities for loans, deposits etc.	085	429,442	42% 068
3. Liabilities to banks and other financial irretistions	通信器	173,201,918	252 502 472
4. Liabilities for received prepayments	897		37.903
5. Accounts payable	668	214,401,822	205.168.935
6. Liabilities arising from debt securities	003		Ö.
7. Liabilities to entrepreneurs in whom the entity holds participating interests	100		O.
8. Liabilities to employees	101	28.770.202	33,429,769
9. Lisbilities for toxes, contributions and similar fees.	102	1.843.388	16.052.021
10. Liabilities to share - holders	103	676,868	676,968
11. Liabilities for long-term assets held for sale	104		m
12. Other short - term lisbilities	105	3367.841	4,461,407
E) DEFFERED SETTLEMENTS OF CHARGES AND INCOME DEFERRED TO FUTURE PERIOD	106	48-344,595	12, 382, 362
F) TOTAL - CAPITAL AND LIABILITIES (062+079+083+093+106)	107	2.682.722.165	2 8 3 3 8 9 8 3 7 3
GI OFF-BALANCE RECORDS	108	600 580 400	608.272.903
APPENDIX to balance sheetito be filled in by entrepreneur that preserve consolidated annual financial report)
CAPITAL AND RESERVES
1. Attributed to equity holders of cerent company	189	o	Ŭ.
2. Attributed to minority interest	110		Ù

Obligator: Podravka prehrambena industrija d.d., Koprivnica
Itam	AOP code	Lant your	Current year
	$\overline{\mathbf{z}}$	濵
1. Subscribed capital	001	1,084,000,600	1.192.400.660
2. Capital reserves	002	45, 763, 754	45,723,445
3. Reserves from profit	003	5.523.313	199,096,530
4. Retained earnings or accumulated loss	004	907.407	902.407
5. Profit or loss for the current year	005	201 873 837	020-14-4-ADV
6. Revaluation of long - term tangible assets	006
7. Revaluation of intangible assets	007
8. Revaluation of financial assets available for sale	nna
9. Other revaluation	009
10. Total capital and reserves (AOP 001 do 009)	010		计调频系统
11. Currency gains and losses arising from net investement in foreign operations	011
12. Current and deferred taxes (part).	012
13. Cash flow hedding	013
14. Changes in accounting policy.	014
15. Correction of significant errors in prior period	015
16. Other changes of capital	016	203 554 382	69.103.912
7. Total increase or decrease in capital (AOP 011 do 010)	017	203 554 382	#39.103.915
17 a. Attributed to equity holders of parent company	018
17 b. Attributed to minority interest	019

Notes to the financial statements:

Accounting policies in year 2015 did not change.

STATEMENT FROM EXECUTIVES RESPONSIBLE FOR PREPARING FINANCIAL STATEMENTS

Koprivnica, 24 July 2015

Contact

Podravka d.d. Ante Starčevića 32, 48 000 Koprivnica, Croatia www.podravka.hr

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