Podravka d.d. — Interim / Quarterly Report 2017

Jul 28, 2017

Koprivnica, 28 July 2017

PODRAVKA INC.

UNCONSOLIDATED FINANCIAL REPORT

FOR 1 - 6 2017 PERIOD

Content:

• General information
• Management report on the achieved business results of Podravka Inc. for the period January - June 2017
• Unconsolidated financial reports for the period January - June 2017
• Statement from executives responsible for preparing financial statements
• Contact

General information

Podravka prehrambena industrija Inc., 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 2017

• President Marin Pucar
• Member Ljiljana Šapina
• Member Davor Doko
• 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, 28 July 2017

MANAGEMENT REPORT ON THE ACHIEVED BUSINESS RESULTS OF PODRAVKA INC. FOR THE PERIOD JANUARY - JUNE 2017

Significant events in 1 - 6 2017

Changes in Supervisory Board and Management Board of Podravka Inc.

On 21st February 2017, the General Assembly of PODRAVKA Inc. was held where the decision to recall two members of the Supervisory Board of PODRAVKA Inc. was adopted - Mato Crkvenac and Ivo Družić. At the same General Assembly meeting, the decision on the election of four members of the Supervisory Board of PODRAVKA Inc. was adopted - Marko Kolaković, Slavko Tešija, Luka Burilović and Damir Grbavac. The term of the elected members of PODRAVKA Inc. Supervisory Board started as of 21st February 2017 and lasts until 7th September 2018. On 30th June 2017, the General Assembly of PODRAVKA Inc. was held where the decisions were adopted to recall a member of the PODRAVKA Inc. Supervisory Board Dinko Novoselec and to appoint Ivana Matovina as the PODRAVKA Inc. Supervisory Board member for the period of 4 years.

On 23rd February 2017, the meeting of the PODRAVKA Inc. Supervisory Board was held where the decision on the appointment of the president and members of the Management Board of PODRAVKA Inc. was adopted. Marin Pucar was appointed president of the Management Board of PODRAVKA Inc., Ljiljana Šapina, Iva Brajević and Hrvoje Kolarić were appointed as members of the Management Board. The term of the appointed president and members of the Management Board began as of 24th February 2017 and was determined to last until 31st October 2018, except for the appointed Management Board member Iva Brajević, whose term was determined to expire on 30th April 2017. As of 1st May 2017, Davor Doko was appointed a PODRAVKA Inc. Management Board member, and his term was determined to last until the expiration of the term of the Management Board as a whole. At the PODRAVKA Inc. Supervisory Board meeting held on 18th July 2017, the decisions were adopted that Marko Đerek be appointed a member of the Management Board and that the term for the president and members of the Management Board be prolonged until 23rd February 2022.

Exposure of the Podravka Group to the key buyer in the Adria region

The Agrokor concern is the key buyer of Podravka, which makes approximately 20% of sales of food products in the Adria region. As of 10 April 2017, the extraordinary administration over

companies in the Agrokor concern headquartered in Croatia was initiated and Podravka pays special attention to monitoring its exposure in operations with these companies. As at 30 June 2017, the total receivables from Agrokor's companies over which the extraordinary administration procedure had been initiated amounted to HRK 130.1 million. This amount also includes receivables for bills of exchange received in the amount of HRK 60.9 million, purchased by Podravka from a factoring company.

Podravka reported receivables of HRK 97.4 million in the extraordinary administration procedure. At the moment, there is insufficient information to assess the need to make provisions for a possible receivables write-off. Podravka continues its business cooperation with companies in the Agrokor concern, controlling its overall exposure.

Key business highlights of 1 - 6 2017

In the 1-6 2017 period, Podravka Inc. recorded sales of HRK 891.5 million, which is 1.3% higher than in the same period of the previous year. At the same time, total operating expenses increased by 3.7%, resulting in operating profit of HRK 26.2 million.

In the 1-6 2017 period, finance income of HRK 21.6 million was recorded, with HRK 36.6 million of finance costs, while the effective tax rate was 18.7%. Profit for the period in 1-6 2017 eventually amounted to HRK 9.1 million.

As at 30 June 2017, total assets of Podravka Inc. amount to HRK 3,238.4 million, which is 2.4% lower compared to the end of 2016. The most significant decrease on the assets side was in the line item receivables from related parties and in the line item cash with bank and cash in hand. On the equity and liabilities side, the most significant decrease was in current liabilities.

In the 1-6 2017 period, cash flow from operating activities amounted to negative HRK 13.7 million, as a consequence of operations and movements in the working capital. Cash flow from investing activities at the same time amounted to negative HRK 64.8 million, primarily due to cash used for the purchase of non-current tangible and intangible assets. In the same period, cash flow from financing activities amounted to positive HRK 12.0 million. Overall, in the 1-6 2017 period, cash and cash equivalents decreased by HRK 66.5 million, resulting in the amount of HRK 70.0 million of cash and cash equivalents as at 30 June 2017.

UNCONSOLIDATED FINANCIAL REPORTS FOR THE PERIOD JANUARY - JUNE 2017

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 1,566,400,660.00, paid in full, total number of shares issued: 7,120,003, nominal share value: HRK 220.00, President of the Supervisory Board: D. Štimac, President of the Management Board: M. Pucar, members of the Management Board: D. Doko, H. Kolarić, Lj. Šapina, M. Đerek

Appendix 1 Reporting period:	1.1.2017.		30.6.2017.
Quarterly financial report of entrepreneur - TFI-POD
Registration number (MB) 03454088
Identification number of subject (MBS) 010006549
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: podravka@podravka.hr
Internet adress: www.podravka.com
Code and name of comune/town KOPRIVNICA 201
Code and county name 6	KOPRIVNIČKO-KRIŽEVAČKA		Number of employees	3170
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: Laljek Senka
(authorised person for representation) Phone number: 048 653 203		Fascimile: 048 220 562
E-mail address: senka laljek@podravka.hr
Surname and name Pucar Marin
(authorised person for representation)

Obligator: Podravka prehrambena industrija d.d., Koprivnica
Bom	Amp boda	Last Year		Current year
				Quinterly Cumulative
I. OPERATING REVENUE (112+113)	111	011,625,600	456,320,509
1. Sales revenue	112	880.116.838	441.534.272	915.197.905 891.530.381	502.426.863 492,504,802
2. Other operating revenues	113	31,586.762	14.795.327	23.667.604	9.921.971
II. OPERATING EXPENSES (115+116+120+124+125+126+129+130)	114	857,046.027	444.970.006	JULI , GR'S DRO.	489.670.424
1. Changes in value of work in progress and finished products	115	$-9.752.790$	$-13.160.126$	23.845.816	23.729.199
2. Material costs (117 to 119)	116	577.115.595	303.647.044	560.551.089	299.929.912
a) Raw material and material costs	117	388.206.337	201.264.536	362.962.168	188.523.242
b) Costs of goods sold	118	98.412.174	51,867,289	122.991.146	69.559.835
c) Other external costs	119	90.497.087	50.515.219	74.597.775	41.846.835
3. Staff costs (121 to 123).	120	184.316.937	92.935.647	177;473.483	91.199.672
a) Not salaries and wages	121	110.391.395	53.917.361	109.690.794	55.830.441
b) Cost for taxes and contributions from salaries	122	46.491.265	24.526.068	41.591.249	21.748.944
c) Contributions on gross salaries	123	27.434.276	14:462.218	26.191.440	13.020.287
4. Depreciation	124	46.888.455	23.625.204	48:432.589	23.403.493
5. Other costs	125	47.379.052	30.202.492	61.571.881	39.654.017
6. Impairment (127+128)	126	$-4.012.394$	$-2.430.686$	2.662.307	2877.204
a) Impairment of long-term assets (financial assets excluded)	127 128	Ű		n
b) Impairment of short - term assets (financial assets excluded) 7. Provisions	129	$-4.012.394$	$-2.430.685$	2,652,307	2,877,204
8. Other operating costs	130	531.576 14,579,593	129.125 10.021.215	1,233,072 13.222.852	362,988 8.513.939
III, FINANCIAL INCOME (132 to 136)	131	26.467,774	11,026,071	21,632,998	7.957.433
1. Interest income, foreign exchange gains, dividends and similar income from related parties	132	10.518.003	7 654 881	9.947.735	3.789.973
2. Interest income, foreign exchange gains, dividends and similar income from non - related parties	133	15.946.041	3.371.184	10.402.474	3.389.09
3. Share in income from affiliated entrepreneurs and participating interests	134	o
4. Unrealized gains (Income) from financial assets	135	5.730		1.282.789	778.361
5. Other financial income	136	$\overline{a}$
IV. FINANCIAL EXPENSES (138 do 141)	137	26.596.823	9.180.257	36.602.929	20,040.899
1. Interest expenses, foreign exchange losses, dividends and similar expenses from related parties	138	5.141.033	255.707	22.679.350	14.308.345
2. Interest expenses, foreign exchange losses, dividends and similar expenses from non - related parties	139	19:943.173	9.072.074	13,923.579	6.650.827
3. Unrealized losses (expenses) on financial assets	140	1.512.617	$-147.524$	o	$-918.273$
4. Other financial expenses	141	Ð		0	k
INCOME FROM INVESTMENT - SHARE IN PROFIT OF ASSOCIATED ENTREPRENEURS v.	142	b	ć	$\alpha$	ø
LOSS FROM INVESTMENT - SHARE IN LOSS OF ASSOCIATED ENTREPRENEURS W.	143	$\theta$	ö	o	ø
VII. EXTRAORDINARY - OTHER INCOME	144			o	ø
VIII. EXTRAORDINARY - OTHER EXPENSES	145			n	é
IX. TOTAL INCOME (111+131+142 + 144)	146	935 093 374	467.355.670	E56.028.029	510.384.296
X. TOTAL EXPENSES (114+137+143 + 145)	147	883.642.850	454.150.263	925.586.018	509.711.323
XI. PROFIT OR LOSS BEFORE TAXATION (146-147)	148	54.450.324	13,205,407	11,244,965	672,073
1. Profit before taxation (146-147) 2. Loss before taxation (147-146)	149 150	54.450.524	13,205.407	11.244.965 $\alpha$	672.973
XII. PROFIT TAX	151	11.375.502	O 3.327.662	2.103.769	120,297
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151)	152	43.075.022	9.577.745	9.141.195	552,678
1. Profit for the pariod (149-151)	153	43.075.022	9.877.745	9.141.195	552.676
2. Loss for the period (151-148)	154	ö	$\mathbf{0}$	ö	$\Omega$
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	o	o	ö	o
2. Attributed to minority interest	156	ō	ö	ö	o
STATEMENT OF OTHER COMPREHENSIVE INCOME (IFRS)
I. PROFIT OR LOSS FOR THE PERIOD (= 152)	157	43.075.022	9:877.745	9.141.196	562.676
II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAX (159 do 165)	158	O	τ	ö
1. Exchange differences on translation of foreign operations	159	ö	o	o
2. Movements in revaluation reserves of long - term tangible and intangible assets	160	ö	$\overline{0}$	ö
3. Profit or loss from reevaluation of financial assets available for sale	161	$\overline{0}$	$\ddot{\rm o}$	O.
4. Gains or losses on efficient cash flow hedging	162	0.	o	o	00000000
5. Gains or losses on efficient hedge of a net investment in foreign countries	163	ö.	$\circ$	o
6. Share in other comprehensive income / loss of associated companies	164	o	ø	$\mathbf{0}$
7. Actuarial gains / losses on defined benefit plans	165	$\boldsymbol{0}$	o	ö
III. TAX ON OTHER COMPREHENSIVE INCOME FOR THE PERIOD	166	'n	D	D)	ö
IV. NET OTHER COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (158-166)	167		D	b	ŏ
V. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (157+167)	168	43.075.022	9.877.745	9.141.196	552,676
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
2. Attributed to minority interest	170	$\overline{0}$	o o	ō $\overline{0}$	o o)

	AOP
Hent	aade	Last year (not)	Current year Creeti
ASSETS			а
A) RECEIVABLES FOR SUBSCRIBED BUT NOT PAID-IN CAPITAL	001	0	o
B) LONG-TERM ASSETS (003+010+020+029+033)	002	1.851.327.653	2.020.644.228
I. INTANGIBLE ASSETS (004 to 009)	003	107.755.978	112:684.849
1. Assets development	004	ū	0
2. Concessions, patents, licences fees, trade and service marks, software and other rights	005	101.805.354	91.430.686
3. Goodwill	006	$\Box$	0
4. Prepayments for purchase of intangible assets	007	αI	O.
5. Intangible assets in preparation	008	5.950.624	21.254.163
6. Other intangible assets	009	ū	a
II. TANGIBLE ASSETS (011 to 019)	010	850.156.418	836.036.505
1. Land	011	43.034.502	43.034.502
2. Buildings	012	473.435.374	461.975.436
3. Plant and equipment	013	263.555.792	269.286.409
4. Tools, facility inventory and transport assets	014	22.786.284	22.044.317
5. Biological assets	015	i0	$\Omega$
6. Prepayments for tangible assets	016	3.503.215	1.413.627
7. Tangible assets in progress	017	43.134.729	37.583.530
8. Other tangible assets	018	706.522	698.684
9. Investments in buildings	019	0	$\Omega$
III. LONG-TERM FINANCIAL ASSETS (021 to 028)	020	867.752.211	1.047.626.303
1. Investments (shares) with related parties	021	808.073.131	977.936.261
2. Loans given to related parties	022	56.465.262	67.105.303
3. Participating interest (shares)	023	1,225,020	1.225.020
4. Loans to entrepreneurs in whom the entity holds participating interests	024	ö
5. Investments in securities	025	o	$\Omega$
6. Loans, deposits and similar assets			$\alpha$
7. Other long - term financial assets	026	1.968.798	1.359.719
	027	o $\overline{0}$	$\overline{0}$
8. Investments accounted by equity method	028		$\Omega$
IV. RECEIVABLES (030 to 032)	029	o 放火灯率	$\overline{0}$
1.Receivables from related parties	030	ō	o
2. Receivables from based on trade loans	031	$\mathbf 0$	$\overline{0}$
3. Other receivables	032	o	$\overline{0}$
V. DEFERRED TAX ASSETS	033	25.663.046	24.296.571
C) SHORT TERM ASSETS (035+043+050+058)	034	1.459.124.345	1.212.279.634
I. INVENTORIES (036 to 042)	035	478.624.439	458,787,766
1. Raw-material and supplies	036	111.660.293	117.365.631
2. Work in progress	037	42.880.135	32,865,481
3. Finished goods 4. Merchandise	038	140.823.462	127.765.682
	039	42.841.093	40.827.769
5. Prepayments for inventories	040	O
6. Long - term assets held for sales	041	140.419.456	139.963.203
7. Biological assets	042	o
II. RECEIVABLES (044 to 049)	043	763.611.620	593.288.286
1. Receivables from related parties	044	465.173.908	299.731.312
2. Accounts receivable	045	279.386.040	286.109.856
3. Receivables from participating parties	046
4. Receivables from employees and members of related parties	047	733.464	855.648
5. Receivables from government and other institutions	048	7.744.536	621.207
6. Other receivables	049	10.573.672	5.970.263
III. SHORT TERM FINANCIAL ASSETS (051 to 057)	050	80.335.253	90.176.605
1. Shares (stocks) in related parties	051	0
2. Loans given to related parties	052	75.449.677	87.549.892
3. Participating interests (shares)	053	٥
4. Loans to entrepreneurs in whom the entity holds participating interests	054
5. Investments in securities	055	306.000	182.000
6. Loans, deposits, etc.	056	2.544.119	1.757.668
7. Other financial assets	057	2.035.457	687.045
IV. CASH AT BANK AND IN CASHIER	058	136.553.033	70.026.977
D) PREPAID EXPENSES AND ACCRUED REVENUE	059	6.155.104	5.441.438
E) TOTAL ASSETS (001+002+034+059)	060	3.316.607.102	3.238.365.300
F) OFF-BALANCE RECORDS	061	966.890.614	990.588.945

Obligator: Podravka prehrambena industrija d.d., Koprivnica
Hem	AOP code	Last year (net)	Current year (000)
	z		闍
LIABILITIES AND CAPITAL
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	2.076.079.537	2.091.517.353
I, SUBSCRIBED CAPITAL	063	1,566,400,660	1,566.400,660
II. CAPITAL RESERVES	064	185.313.851	182,752,349
III.RESERVES FROM PROFIT (066+067-068+069+070)	065	143.682.952	282.022.740
1. Reserves prescribed by low	066	17.659.521	26,625.605
2. Reserves for treasury shares	067	147.604.502	147.604,502
3. Treasury stocks and shares (deduction)	068	72.539.675	63.681.553
4. Statutory reserves	069	ō
5. Other reserves	070	50.958.604	171.474.186
IV. REVALUATION RESERVES	071	n	O
V. RETAINED EARNINGS OR ACCUMULATED LOSS (073-074)	072	1.360.387	51.200.408
1. Retained earnings	073	1.360.387	51,200,408
2. Accumulated loss	074
VI. PROFIT/LOSS FOR THE CURRENT YEAR (076-077)
	075	179.321.687	9.141.196
1. Profit for the current year	076	179.321.687	9.141.196
2. Loss for the current year	077	O	0
IX. MINORITY INTERESTS	078	O	Ď
B) PROVISIONS (080 to 082)	079	31.469.021	32.684.933
1. Provisions for pensions, severance pay, and similar liabilities	080	17,750,427	17,750,427
2. Reserves for tax liabilities	081
3. Other reserves	082	13.718.594	14.934.506
C) LONG - TERM LIABILITIES (084 to 092)	083	398.472.313	426.094.100
1. Liabilities to related parties	084	0	0
2. Liabilities for loans, deposits etc.	085	$\ddot{0}$	o
3. Liabilities to banks and other financial institutions	086	398.472.313	426.094.100
4. Liabilities for received prepayments	087	O	Ű
5. Accounts payable	088	o	$\overline{0}$
6. Liabilities arising from debt securities	089	o	$\circ$
7. Liabilities to entrepreneurs in whom the entity holds participating interests	090	o	$\sigma$
8. Other long-term liabilities	091	O	0
9. Deferred tax liability	092	Ð	$\alpha$
D) SHORT - TERM LIABILITIES (094 to 105)	093	771.097.403	635.734.805
1. Liabilities to related parties	094	156,595,983	196.980.380
2. Liabilities for loans, deposits etc.	095	324.985	318.486
3. Liabilities to banks and other financial institutions	096	233.177.632	180.958.793
4. Liabilities for received prepayments	097	Ð
5. Accounts payable	098	263.032.904	189.576.178
6. Liabilities arising from debt securities	099	82,720.318
7. Liabilities to entrepreneurs in whom the entity holds participating interests	100	$\overline{0}$
8. Liabilities to employees	101	30.943.833	49.076.006
9. Liabilities for taxes, contributions and similar fees	102	1,750,091	17.756.116
10. Liabilities to share - holders	103	676.368	676.368
11. Liabilities for long-term assets held for sale	104	0
12. Other short - term liabilities	105	1.875.289	392,480
E) DEFFERED SETTLEMENTS OF CHARGES AND INCOME DEFERRED TO FUTURE PERIOD	106	39.488.828	52.334.109
F) TOTAL - CAPITAL AND LIABILITIES (062+079+083+093+106)	107	3.316.607.102	3.238.365.300
G) OFF-BALANCE RECORDS	108	966.890.614	990.588.945
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	Ű	$\circ$
2. Attributed to minority interest	110	α	O.

Obligator: Podravka prehrambena industrija d.d., Koprivnica Item	AOP	Last year	Current year
	code z		и
CASH FLOW FROM OPERATING ACTIVITIES
1. Profit before tax	001	54.450.524	11.244.965
2. Depreciation	002	46.888.455	48.432.589
3. Increase in short term liabilities	003
4. Decrease in short term receivables	004
5. Decrease in inventories	005	7.501.357	19.380.420
6. Other increase in cash flow	006	2.502.222	14.730.232
I. Total increase in cash flow from operating activities (001 to 006)	007	111.342.558	93.788.206
1. Decrease in short term liabilities	008	19.280.121	101.008.471
2. Increase in short term receivables	009	9.517.355	563.082
3. Increase in inventories	010	o
4. Other decrease in cash flow	011	42.158.973	5.945.668
II. Total decrease in cash flow from operating activities (008 to 011)	012	70.956.449	107.517.221
A1) NET INCREASE IN CASH FLOW FROM OPERATING ACTIVITIES (007-012)	013	40.386.109
A2) NET DECREASE IN IN CASH FLOW FROM OPERATING ACTIVITIES (012-007)	014	$\overline{0}$	13.729.015
CASH FLOW FROM INVESTING ACTIVITIES
1. Cash inflows from sales of long-term tangible and intangible assets	015	11.325.990	1.560.706
2. Cash inflows from sales of equity and debt instruments	016	6.156.177
3. Interests receipts	017	1.601.757	1.047.087
4. Dividend receipts	018
5. Other cash inflows from investing activities	019	1.189.399	9.686.780
III. Total cash inflows from investing activities (015 to 019)	020	20.273.323	12.294.573
1. Cash outflow for purchase of long-term tangible and intangible assets	021	80.222.775	40.052.621
2. Cash outflow for acquisition of equity and debt financial instruments	022	11.119.047	1.255.550
3. Other cash outflow for investing activities	023	58.256.901	35.761.769
IV. Total cash outflow for investing activities (021 do 023)	024	149.598.723	77.069.940
B1) NET INCREASE IN CASH FLOW FROM INVESTING ACTIVITIES (020-024)	025
B2) NET DECREASE IN CASH FLOW FROM INVESTING ACTIVITIES (024-020)	026	129.325.400	64,775,367
CASH FLOW FROM FINANCIAL ACTIVITIES
1. Cash inflow from issuing property and debt financial instruments	027
2. Proceeds from the credit principal, promissory notes, borrowings and other loans	028	264.690.452	97.988.485
3. Other proceeds from financial activities	029	312,672	6.945.454
V. Total cash inflows from financial activities (027 to 029)	030	265.003.124	104.933.939
1. Cash outflow for repayment of credit principal and bonds	031	214.321.518	92.955.613
2. Cash outflow for dividends paid	032		0
3. Cash outflow for financial lease	033	529,732	$\theta$
	034	4.628.876	$\theta$
4. Cash outflow for purchase of treasury shares	035
5. Other cash outflow for financial activities		219.480.126	0 92.955.613
VI. Total cash outflow for financial activities (031 to 035)	036	45.522.998
C1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES (030-036)	037 038	$\mathbf{0}$	11.978.326
C2) NET DECREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES (036-030)	039
Total increase in cash flow (013 - 014 + 025 - 026 + 037 - 038)
Total decrease in cash flow (014 - 013 + 026 - 025 + 038 - 037)	040	43.416.293	66.526.056
Cash and cash equivalents at the beginning of the period	041	95.413.823	136.553.033
Increase of cash and cash equivalents	042
Decrease of cash and cash equivalents	043	43.416.293	66.526.056
Cash and cash equivalents at the end of the period	044	51.997.530	70.026.977

Hern		Last year	Current year
1. Subscribed capital	001	1.566.400.660	1.566.400.660
2. Capital reserves	002	185.313.851	182.752.349
3. Reserves from profit	003	143.682.952	282.022.740
4. Retained earnings or accumulated loss	004	1.360.387	51.200.408
5. Profit or loss for the current year	005	179.321.687	9.141.196
6. Revaluation of long - term tangible assets	006
7. Revaluation of intangible assets	007
8. Revaluation of financial assets available for sale	800
9. Other revaluation	009
10. Total capital and reserves (AOP 001 do 009)	010	2.076.079.537	2.091.517.353
11. Currency gains and losses arising from net investement in foreign operations	011
12. Current and deferred taxes (part)	012
13. Cash flow hedging	013
14. Changes in accounting policy	014
15. Correction of significant errors in prior period	015
16. Other changes of capital	016	125.706.826	15.437.816
17. Total increase or decrease in capital (AOP 011 do 016)	017	125.706.826	15.437.816
17 a. Attributed to equity holders of parent company	018
17 b. Attributed to minority interest	019

Notes to the financial statements:

The accounting policy in 2017 did not change.

STATEMENT FROM EXECUTIVES RESPONSIBLE FOR PREPARING FINANCIAL STATEMENTS

Koprivnica, 28 July 2017

Contact

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

Investor relations e-mail: ir@podravka.hr Tel: +385 48 65 16 65