Podravka d.d. — Interim / Quarterly Report 2017

Oct 27, 2017

Koprivnica, 27 October 2017

PODRAVKA INC.

UNCONSOLIDATED FINANCIAL REPORT

FOR 1 - 9 2017 PERIOD

Content:

• General information
• Management report on the achieved business results of Podravka Inc. for the period January - September 2017
• Unconsolidated financial reports for the period January - September 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 September 2017

• President Marin Pucar
• Member Ljiljana Šapina
• Member Davor Doko
• Member Hrvoje Kolarić
• Member Marko Đerek

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

Koprivnica, 27 October 2017

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

Significant events in 1 - 9 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 Podravka to the key buyer 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 September 2017, the total receivables from Agrokor concern companies over which the extraordinary administration procedure had been initiated amounted to HRK 119.4 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. Podravka continues its business cooperation with companies in the Agrokor concern, controlling its overall exposure.

Dividend distribution to shareholders of Podravka Inc.

As at 30 June 2017, by the Decision on the use of Podravka Inc.'s profit for 2016, the General Assembly approved the dividend distribution to shareholders of Podravka Inc. in the gross amount of HRK 7.00 per share. The dividend was distributed on 30 August 2017, for which HRK 48.6 million were used.

Key business highlights of 1 - 9 2017

In the 1-9 2017 period, Podravka Inc. recorded sales of HRK 1,406.5 million, which is 1.7% higher than in the same period of the previous year. At the same time, total operating expenses increased by 2.7%, resulting in operating profit of HRK 73.0 million.

In the 1-9 2017 period, finance income of HRK 44.5 million was recorded, with HRK 47.6 million of finance costs, while the effective tax rate was 12.1%. Profit for the period in 1-9 2017 eventually amounted to HRK 61.4 million.

As at 30 September 2017, total assets of Podravka Inc. amount to HRK 3,217.5 million, which is 3.0% 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 1-9 2017 period, cash flow from operating activities amounted to positive HRK 52.9 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 55.5 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 negative HRK 105.2 million. Overall, in the 1-9 2017 period, cash and cash equivalents decreased by HRK 107.7 million, resulting in the amount of HRK 28.8 million of cash and cash equivalents as at 30 September 2017.

UNCONSOLIDATED FINANCIAL REPORTS FOR THE PERIOD JANUARY - SEPTEMBER 2017

Appendix 1 Reporting period:	1.1.2017.	30.9.2017.
	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 3331
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: Artner Kukec Julijana
(authorised person for representation) Phone number: 048 653 055		Fascimile: 048 220 562
E-mail address: Julijana.ArtnerKukec@podravka.hr

Obligator: Podravka prehrambena industrija d.d., Koprivnica	AOP
Hom		Lett Year		Current year
		Cumulative	Quarterly	Cumulative	Quarterly
I. OPERATING REVENUE (112+113)	111	1.424.433.528	512.807.928	1.437.313.678	522.115.693
1. Sales revenue	112	1.382.983.441	502.866.602	1.406.498.312	514.967.931
2. Other operating revenues	113	41.450.087	9.941.326	30.815.366	7.147.762
II. OPERATING EXPENSES (115+116+120+124+125+126+129+130)	114	1.328.750.938	471.704.911	1.364.316.264	475.333.175
1. Changes in value of work in progress and finished products	115	$-41.640.050$	$-31.887.259$	-5.472.550	$-29.318.366$
2. Material costs (117 to 119)	116	925.500.314	348.384.716	916:394.730	355.843.641
a) Raw material and material costs	117	623.027.180	234.820.843	593.849.942	230.887.774
b) Costs of goods sold	118	160.332.443	61.920.270	211.983.695	88.992.549
c) Other external costs	119	142.140.691	51.643.603	110.561.093	35.963.318
3. Staff costs (121 to 123)	120	285.456.937	101.140.000	275.809.444	98.335.961
a) Net salaries and wages	121	173.035.414	62.644.018	171.190.498	61.499.704
b) Cost for taxes and contributions from salaries	122	70.479.375	23.988.110	64.410.331	22.819.083
c) Contributions on gross salaries	123	41.942.148	14.507.872	40.208.615	14.017.174
4. Depreciation	124	67.987.043	21.098.588	70.439.710	22.007.121
5. Other costs	125	73.650.330	26.271.278	82.786.598	21.214.717
6. Impairment (127+128)	126	$-2.466.681$	1.545.713	4.983.352	2.331.045
a) Impairment of long-term assets (financial assets excluded)	127				$\Omega$
b) Impairment of short - term assets (financial assets excluded)	128	$-2.466.681$	1,545,713	4.983.352	2.331.045
7. Provisions	129	314.643	$-216.934$	1.261.640	28.568
8. Other operating costs	130	19.948.402	5.368.809	18.113.340	4.890.488
III. FINANCIAL INCOME (132 to 136)	131	32.607.634	6.139.859	44,471.761	22.838,763
1. Interest income, foreign exchange gains, dividends and similar income from related parties	132	15.464.945	4.948.942	35.555.475	25.607.740
2. Interest income, foreign exchange gains, dividends and similar income from non - related parties and other entities	133	17.125.173	1.179.132	7.732.093	$-2.670.381$
3. Share in income from affiliated entrepreneurs and participating interests	134				$\Omega$
4. Unrealized gains (income) from financial assets	135	17.516	11.785	1.184.193	$-98.596$
5. Other financial income	136				$\Omega$
IV. FINANCIAL EXPENSES (138 do 141)	137	35.399.101	8.802.278	47.557.065	10.954.136
1. Interest expenses, foreign exchange losses, dividends and similar expenses from related parties	138	6.920.797	1.779.764	26.082.239	3.402.889
2. Interest expenses, foreign exchange losses, dividends and similar expenses from non - related parties and other entities	139	27.254.432	7,311,259	19.310.633	5,387,054
3. Unrealized losses (expenses) on financial assets	140	1.223.872	$-288.745$		$\pmb{0}$
4. Other financial expenses	141	$\Omega$		2.164.193	2.164.193 $\Omega$
INCOME FROM INVESTMENT - SHARE IN PROFIT OF ASSOCIATED ENTREPRENEURS V. VI	142 143	o $\mathbf{0}$	$\Omega$ $\Omega$	$\Omega$	$\mathbf{0}$
LOSS FROM INVESTMENT - SHARE IN LOSS OF ASSOCIATED ENTREPRENEURS VII. EXTRAORDINARY - OTHER INCOME		$\pmb{\mathsf{O}}$	O	Ð	$\mathbf{O}$
VIII. EXTRAORDINARY - OTHER EXPENSES	144 145	$\Omega$	n		$\overline{0}$
IX. TOTAL INCOME (111+131+142 + 144)	146	1.457.041.162	518.947.787	1.481.785.439	544.954.456
TOTAL EXPENSES (114+137+143 + 145) X.	147	1.364.150.039	480.507.189	1.411.873.329	486.287.311
XI. PROFIT OR LOSS BEFORE TAXATION (146-147)	148	92.891.123	38.440.598	69.912.110	58.667.145
1. Profit before taxation (146-147)	149	92.891.123	38.440.598	69.912.110	58.667.145
2. Loss before taxation (147-146)	150		$\Omega$
XII. PROFIT TAX	151	19.277.227	7.901.725	8.482.777	6.379.008
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151)	152	73.613.896	30:538.873	61.429.333	52.288.137
1. Profit for the period (149-151)	153	73.613.896	30.538.873	61.429.333	52.288.137
2. Loss for the period (151-148)	154	Ð	$\Omega$	о	$\Omega$
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	$\mathbf 0$	0
2. Attributed to minority interest	156	$\overline{0}$	$\overline{0}$	$\overline{0}$	$\Omega$
STATEMENT OF OTHER COMPREHENSIVE INCOME (IFRS)
I. PROFIT OR LOSS FOR THE PERIOD (= 152)	157	73.613.896	30.538.873	61.429.333	52.288.137
II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAX (159 do 165)	158	G	Ð	0	$\Omega$
1. Exchange differences on translation of foreign operations	159	$\theta$	$\theta$	'n	$\mathbf{0}$
2. Movements in revaluation reserves of long - term tangible and intangible assets	160	0	$\Omega$	$\theta$	$\mathbf 0$
3. Profit or loss from reevaluation of financial assets available for sale	161	ö	$\mathbf{0}$	$\Omega$	$\pmb{0}$
4. Gains or losses on efficient cash flow hedging	162	Ō	$\mathbf{0}$		$\mathbf 0$
5. Gains or losses on efficient hedge of a net investment in foreign countries	163	O	$\Omega$		$\circ$
6. Share in other comprehensive income / loss of associated companies	164	0			$\alpha$
7. Actuarial gains / losses on defined benefit plans	165	0	o		ö
III. TAX ON OTHER COMPREHENSIVE INCOME FOR THE PERIOD	166	$\theta$	$\theta$		$\bf{0}$
IV. NET OTHER COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (158-166)	167	$\Omega$	$\Omega$		$\Omega$
V. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (157+167)	168	73.613.896	30.538.873	61.429.333	52.288.137
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		$\Omega$	$\circ$	0
2. Attributed to minority interest	170	$\circ$	$\sigma$	$\Omega$	ö

Item	AOP	Last year (net)	Current year
	code		(not)
ASSETS			и
A) RECEIVABLES FOR SUBSCRIBED BUT NOT PAID-IN CAPITAL	001
B) LONG-TERM ASSETS (003+010+020+029+033)	002	1.851.327.653	2.013.033.596
I. INTANGIBLE ASSETS (004 to 009)	003	107.755.978	109.916.136
1. Assets development	004
2. Concessions, patents, licences fees, trade and service marks, software and other rights	005	101.805.354	101.347.166
3. Goodwill	006
4. Prepayments for purchase of intangible assets	007	0
5. Intangible assets in preparation	008	5.950.624	8.568.970
6. Other intangible assets	009
II. TANGIBLE ASSETS (011 to 019)	010	850.156.418 43.034.502	826.258.875 43.034.502
1. Land	011 012	473.435.374	456.259.096
2. Buildings	013	263.555.792	267.984.230
3. Plant and equipment 4. Tools, facility inventory and transport assets	014	22.786.284	21.308.549
5. Biological assets	015	0	0
6. Prepayments for tangible assets	016	3.503.215	2.870.642
7. Tangible assets in progress	017	43.134.729	34.107.091
8. Other tangible assets	018	706.522	694.765
9. Investments in buildings	019	$\mathbf{0}$
III. LONG-TERM FINANCIAL ASSETS (021 to 028)	020	867.752.211	1.051.747.549
1. Investments (shares) with related parties	021	808.073.131	977.936.261
2. Loans given to related parties	022	56.465.262	71.543.078
3. Participating interest (shares)	023	1.225.020	1,225.020
4. Loans to entrepreneurs in whom the entity holds participating interests	024	0	$\overline{0}$
5. Investments in securities	025	$\circ$	$\overline{0}$
6. Loans, deposits and similar assets	026	1.988.798	1.043.190
7. Other long - term financial assets	027	0	$\overline{0}$
8. Investments accounted by equity method	028	0	$\overline{0}$
IV. RECEIVABLES (030 to 032)	029	$\mathbf 0$	$\sigma$
1. Receivables from related parties	030	$\mathbf 0$	$\overline{0}$
2. Receivables from based on trade loans	031	0	$\mathbf 0$
3. Other receivables	032	$\Omega$	$\mathbf 0$
V. DEFERRED TAX ASSETS	033	25.663.046	25.111.036
C) SHORT TERM ASSETS (035+043+050+058)	034	1.459.124.345	1.200.246.488
I. INVENTORIES (036 to 042)	035	478.624.439	517.839.464
1. Raw-material and supplies	036	111.660.293	143.606.643
2. Work in progress	037	42.880.135 140.823.462	47.132.430 146.995.050
3. Finished goods	038	42.841.093	40.142.138
4. Merchandise	039 040	$\Omega$	$\mathbf{0}$
5. Prepayments for inventories	041	140.419.456	139.963.203
6. Long - term assets held for sales 7. Biological assets	042	O
II. RECEIVABLES (044 to 049)	043	763.611.620	561.314.810
1. Receivables from related parties	044	465.173.908	277.945.839
2. Accounts receivable	045	279.386.040	277.714.356
3. Receivables from participating parties	046	$\mathbf 0$	0
4. Receivables from employees and members of related parties	047	733.464	744.082
5. Receivables from government and other institutions	048	7.744.536	533.106
6. Other receivables	049	10.573.672	4.377.427
III, SHORT TERM FINANCIAL ASSETS (051 to 057)	050	80.335.253	92.287.748
1. Shares (stocks) in related parties	051	0	$\bf{0}$
2. Loans given to related parties	052	75.449.677	90.249.683
3. Participating interests (shares)	053	0	0
4. Loans to entrepreneurs in whom the entity holds participating interests	054	$\bf{0}$	0
5. Investments in securities	055	306.000	270.000
6. Loans, deposits, etc.	056	2.544.119	1.391.520
7. Other financial assets	057	2.035.457	376.545
IV. CASH AT BANK AND IN CASHIER	058	136.553.033	28.804.466
D) PREPAID EXPENSES AND ACCRUED REVENUE	059	6.155.104	4.268.839
E) TOTAL ASSETS (001+002+034+059)	060	3.316.607.102	3.217.548.923
F) OFF-BALANCE RECORDS	061	966.890.614	1.050.579.108

Obligator: Podravka prehrambena industrija d.d., Koprivnica
Item	AOP code	Last year (net)	Current year $($ net)
٦	2		A
LIABILITIES AND CAPITAL
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	2.076.079.537	2.096.502.688
I. SUBSCRIBED CAPITAL	063	1.566.400.660	1.566.400.660
II. CAPITAL RESERVES	064	185.313.851	180.912.994
III.RESERVES FROM PROFIT (066+067-068+069+070)	065	143.682.952	285.201.614
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	60.502.679
4. Statutory reserves	069	$\Omega$
5. Other reserves	070	50.958.604	171.474.186
IV. REVALUATION RESERVES	071
V. RETAINED EARNINGS OR ACCUMULATED LOSS (073-074)	072	1.360.387	2.558.087
1. Retained earnings	073	1.360.387	2.558.087
2. Accumulated loss	074	0
VI. PROFIT/LOSS FOR THE CURRENT YEAR (076-077)	075	179.321.687	61.429.333
1. Profit for the current year	076	179.321.687	61.429.333
2. Loss for the current year	077	0
IX. MINORITY INTERESTS	078	0
B) PROVISIONS (080 to 082)	079	31.469.021	32.426.119
1. Provisions for pensions, severance pay, and similar liabilities	080	17.750.427	17.750.427
2. Reserves for tax liabilities	081	0
3. Other reserves	082	13.718.594	14.675.692
		398.472.313	375.790.716
C) LONG - TERM LIABILITIES (084 to 092)	083
1. Liabilities to related parties	084	0
2. Liabilities for loans, deposits etc.	085
3. Liabilities to banks and other financial institutions	086	398.472.313	375.790.716
4. Liabilities for received prepayments	087	$\mathbf 0$
5. Accounts payable	088	0	0
6. Liabilities arising from debt securities	089	0	0
7. Liabilities to entrepreneurs in whom the entity holds participating interests	090		0
8. Other long-term liabilities	091	0	0
9. Deferred tax liability	092
D) SHORT - TERM LIABILITIES (094 to 105)	093	771.097.403	650.925.159
1. Liabilities to related parties	094	156.595.983	193.657.588
2. Liabilities for loans, deposits etc.	095	324.985	322.376
3. Liabilities to banks and other financial institutions	096	233.177.632	178.250.833
4. Liabilities for received prepayments	097
5. Accounts payable	098	263.032.904	234.109.604
6. Liabilities arising from debt securities	099	82.720.318
7. Liabilities to entrepreneurs in whom the entity holds participating interests	100	$\overline{0}$	$\mathbf{0}$
8. Liabilities to employees	101	30.943.833	29.419.592
9. Liabilities for taxes, contributions and similar fees	102	1.750.091	13.454.959
10. Liabilities to share - holders	103	676.368	1.101.823
11. Liabilities for long-term assets held for sale	104	0	$\overline{0}$
12. Other short - term liabilities	105	1.875.289	608.384
E) DEFFERED SETTLEMENTS OF CHARGES AND INCOME DEFERRED TO FUTURE PERIOD	106	39.488.828	61.904.241
F) TOTAL - CAPITAL AND LIABILITIES (062+079+083+093+106)	107	3.316.607.102	3.217.548.923
G) OFF-BALANCE RECORDS	108	966.890.614	1.050.579.108
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	$\Omega$	$\circ$
2. Attributed to minority interest	110	$\sigma$	$\overline{0}$

Item	AOP	Last year	Current year
	code 21	з	诺
CASH FLOW FROM OPERATING ACTIVITIES
1. Profit before tax	001	92.891.123	69.912.110
2. Depreciation	002	67.987.043	70.439.710
3. Increase in short term liabilities	003	8.749.209
4. Decrease in short term receivables	004	0	32.489.981
5. Decrease in inventories	005	$\Omega$
6. Other increase in cash flow	006	3.337.479	27.749.789
I. Total increase in cash flow from operating activities (001 to 006)	007	172.964.854	200.591.590
1. Decrease in short term liabilities	008	$\Omega$	75.261.967
2. Increase in short term receivables	009	4.241.715
3. Increase in inventories	010	39.971.782	39.671.278
4. Other decrease in cash flow	011	42.936.936	32.724.000
II. Total decrease in cash flow from operating activities (008 to 011)	012	87.150.433	147.657.245
A1) NET INCREASE IN CASH FLOW FROM OPERATING ACTIVITIES (007-012)	013	85.814.421	52.934.345
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	12.123.252	1.568.706
2. Cash inflows from sales of equity and debt instruments	016	6.156.177
3. Interests receipts	017	5.011.815	1.297.207
4. Dividend receipts	018	0	25.000.000
5. Other cash inflows from investing activities	019	9.447.921	12.887.254
III. Total cash inflows from investing activities (015 to 019)	020	32.739.165	40.753.167
1. Cash outflow for purchase of long-term tangible and intangible assets	021	108.051.434	49.616.555
2. Cash outflow for acquisition of equity and debt financial instruments	022	11.402.307	1.310.303
3. Other cash outflow for investing activities	023	108.594.716	45.289.020
IV. Total cash outflow for investing activities (021 do 023)	024	228.048.457	96.215.878
B1) NET INCREASE IN CASH FLOW FROM INVESTING ACTIVITIES (020-024)	025	$\mathbf 0$
B2) NET DECREASE IN CASH FLOW FROM INVESTING ACTIVITIES (024-020)	026	195.309.292	55.462.711
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	399.560.828	127.523.749
3. Other proceeds from financial activities	029	3.307.617	6.945.454
V. Total cash inflows from financial activities (027 to 029)	030	402.868.445	134.469.203
1. Cash outflow for repayment of credit principal and bonds	031	281.027.930	191.047.083
2. Cash outflow for dividends paid	032	48.479.634	48.642.321
3. Cash outflow for financial lease	033	795.641	0
4. Cash outflow for purchase of treasury shares	034	12.976.357	$\Omega$
5. Other cash outflow for financial activities	035	0
VI. Total cash outflow for financial activities (031 to 035)	036	343.279.562	239.689.404
C1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES (030-036)	037	59.588.883
C2) NET DECREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES (036-030)	038	$\mathbf{0}$	105.220.201
Total increase in cash flow (013 - 014 + 025 - 026 + 037 - 038)	039	$\bf{0}$
Total decrease in cash flow $(014 - 013 + 026 - 025 + 038 - 037)$	040	49.905.988	107.748.567
Cash and cash equivalents at the beginning of the period	041	95.413.823	136.553.033
Increase of cash and cash equivalents	042	n
Decrease of cash and cash equivalents	043	49.905.988	107.748.567
Cash and cash equivalents at the end of the period	044	45.507.835	28.804.466

Obligator: Podravka prehrambena industrija d.d., Koprivnica
Item		Last year	Current year
	$\overline{P}$	$\mathbf{B}$	A
1. Subscribed capital	001	1.566.400.660	1.566.400.660
2. Capital reserves	002	185.313.851	180.912.994
3. Reserves from profit	003	143.682.952	285.201.614
4. Retained earnings or accumulated loss	004	1,360.387	2.558.087
5. Profit or loss for the current year	005	179.321.687	61.429.333
6. Revaluation of long - term tangible assets	006
7. Revaluation of intangible assets	007
8. Revaluation of financial assets available for sale	008
9. Other revaluation	009
10. Total capital and reserves (AOP 001 do 009)	010	2.076.079.537	2.096.502.688
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	n
14. Changes in accounting policy	014
15. Correction of significant errors in prior period	015
16. Other changes of capital	016	125.706.826	20.423.151
17. Total increase or decrease in capital (AOP 011 do 016)	017	125.706.826	20.423.151
17 a. Attributed to equity holders of parent company	018	O
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, 27 October 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