Podravka d.d. — Interim / Quarterly Report 2017

Mar 2, 2018

Koprivnica, 28 February 2018

PODRAVKA INC.

UNCONSOLIDATED FINANCIAL REPORT

FOR 1 - 12 2017 PERIOD

Content:

• General information
• Management report on the achieved business results of Podravka Inc. for the period January - December 2017
• Unconsolidated financial reports for the period January - December 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 31 December 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, 28 February 2018

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

Significant events in 1 - 12 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 from 19th July 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. In the extraordinary administration procedure, receivables in the total amount of HRK 97.4 million were reported, of which HRK 60.9 million relates to bills of exchange. 99.3% of the reported receivables were accepted, while the remaining portion relates to receivables that were recorded in Podravka after 9 April 2017, which was subsequently adjusted. As at 31 December 2017, the total exposure of Podravka Inc. to Agrokor companies in the market of Croatia amounts to HRK 93.5 million, of which HRK 60.8 million relates to bills of exchange, HRK 3.2 million relates to the "old debt", while the remainder relates to receivables from normal operations. Since the settlement procedure is still in progress and at the moment there are no indications of the final outcome, Podravka will include possible provisions for receivables from Agrokor concern companies in the audited statements.

Stable dividend policy implementation continues

On 27 April 2017, Podravka Inc. management made a draft decision to distribute dividend in the gross amount of HRK 7.00 per share, continuing to consistently apply the dividend distribution policy even in a challenging business environment. 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 - 12 2017

In 1-12 2017, Podravka Inc. recorded sales of HRK 1,904.3 million, 0.9% higher than in the same period of the previous year. Total operating expenses at the same time grew 6.9%, which resulted in operating profit of negative HRK 32.4 million.

In 1-12 2017 finance income of HRK 218.3 million was recorded, with HRK 58.7 million of finance costs, while the effective tax rate was 3.6%. Profit for the period in 1-12 2017 amounted to HRK 122.6 million.

As at 31 December 2017, total assets of Podravka Inc. amount to HRK 3,131.9 million, 5.6% lower compared to the end of 2016. The most significant decrease on the assets side was in line item receivables from related parties and in line item trade receivables. On the equity and liabilities side, the most significant decrease was recorded by current liabilities.

Cash flow from operating activities in 1-12 2017 amounted to positive HRK 191.8 million, as a consequence of operations and movements in working capital. Cash flow from investing activities at the same time amounted to negative HRK 48.3 million, primarily due to cash used

for the purchase on non-current tangible and intangible assets. In the same period, cash flow from financing activities amounted to negative HRK 148.1 million. In total, in 1-12 2017 cash and cash equivalents decreased by HRK 4.5 million, and consequently the amount of cash and cash equivalents as at 31 December 2017 was HRK 132.0 million.

UNCONSOLIDATED FINANCIAL REPORTS FOR THE PERIOD JANUARY - DECEMBER 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

		1.1.2017.	10	31.12.2017.
	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 prohrambona inclustrija d.d., KOPRIVNICA
Postal code and place	48000		KOPRIVNICA
	Street and number ANTE STARCEVICA 32
	E-mail address: podravka@codravka.hr
	Internet adress: www.podtavka.com
Code and name of comunatiown	KOPRIVNICA 201
Code and county name	s	KOPRIVNIČKO-KRIŽEVAČKA		Number of employees	3026
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
Phone number: 048 653 055	(authorized person for representation)			Fascimile: 048 220 562
	E-mail address: Juliang, ArtnerKukec@pockavka.hr
Sumame and name Pucar Marin.
	(authorised person for representation)
Disclosure documents: 1. Financial statements (balance sheet, profit and loss account, cash flow statement, statement of changes in shareholders' equity and notes to the financial statements) 2. Interim management Report 3. Statement of responsible persons for preparation of financial statements				(signed by puthorised person for representation)

Henri	MOR birde	Last Year		Cartest year
		Cumulative	Guarnety	Comunitys Gasterly
٠	œ,	œ	×	٠	۰
OPERATING REVENUE (112+113)	111	1,855,982,546	STRAIL102	1.945.186.815	GBS ARS ASS
1. Sales revenue	112	1.653.183.146	126.135767	1:934.331.988	497.833.671
2. Other operating revenues	113	62,873.196	26.423.103	36.861.528	8.052.160
IL OPERATING EXPENSES (115+116+120+124+125+126+129+130)	114	1.647.611.153	518.780.215	1.976.606.824	611.209.660
1. Changes in value of work in progress and finished products	115	$-12.065, 367$	38.574.783	$-1.306.248$	4.100.501
2. Material costs (117 to 119)	116	1246.467.367	320.937.002	1.203.408.206	337.103.426
a) Raw material and material costs	117	613, 113, 957	190.080.777	799.632.786	195, 782, 644
b) Ceats of goods sold	安田県	234, 121, 547	73,630,103	209.801.349	77.877.054
c) Other external costs	119	199.121.803	56, 581, 572	174,034,073	63442,970
3. Skaff conta (121 to 123)	120	372,730,688	87,262,752	302,119.572	80.009.928
a) Net salaries and wopes	621	228.058.090	55,023,667	226.654.218	55.463.720
b) Cost for taxes and contributions from salaries	922	56,768,588	10.290.285	52, 982, 531	10.552.206
c) Contributions on gross salaries	123	64,012,028	12,968,988	(2) 602.623	12.294.008
4. Depreciation	124	96,486,905	38.493.762	05.206.442	34, 386, 736
5. Other costs	126	102.213.055	28,582,788	104.653.488	21866, 900
6. Impairment (127+128)	126	$-7.711.887$	4.645.289	30,360,864	26.986.602
a) impeirment of long-term exsets (financial assets ascoclad)	127			19,340.995	15.343.999
(babalow ateees leioneral) ateees miet - horiz to treamward (d 7. Provisions	128	$-7.111.887$	$-4,645,206$	11.027.918	8.044.509
	129		-314,645	3,699,102	2.407.462
8. Other operating costs II. FINANCIAL INCOME (132 to 136)	$+30$	49.847.353	29.890.950	127.395.569	109.283.229
	535	144,036,336	111,428,783	218.013.283	173,841,522
1. Interest income, foreign exchange gains, dividends and similar income from related parties	132	125,658,882	110.064.037	207.206.012	171,650.437
2. Interest income, foreign coohergo gains, dividends and similar income from non - related parties and other entities	133	18:448.948	1.323.776	9.695.572	1003.471
3. Share in income from affiliated entrepreneurs and participating interests	134	o
4. Unrealized gains (income) from financial supets	135	28, 405	10,853	1.411.700	227886
5. Other financial income	136	T 1
IV. FINANCIAL EXPENSES (138 do 141)	137	48.121/070	13.721 638	58.727.688	11.115 (23)
1. Interest experiess, foreign exchange losses, dividends and strillar exponses from related parties.	138	15,834.087	3.913.201	30.827.187	4.745.468
2. Interest expenses, foreign exchange losses, dividends and similar expenses from 1991 - rolated parties.	130	34,826,898	7.372.464	24.875.000	5.563.060
and other entities	140
3. Unnaalized losses (superiors) on financial assets 4. Other financial exponses		303.488	420.386	3 526 200
INCOME FROM INVESTMENT - SHARE IN PROFIT OF ASSOCIATED ENTREPRENEURS	141	2,364,638	2.350.000		FE2.000
LOSS FROM INVESTMENT - SHARE IN LOSS OF ASSOCIATED ENTREPRENEURS Iv.	100 6.43
WI. EXTRADISONARY - OTHER INCOME	144
VIII. EXTRAGROMARY - OTHER EXPENSES	148
IX: TOTAL INCOME (1111+121+142 + 144)	146	2 100.018.680	642,637,519	2.161.612.734	679.727.281
TOTAL EXPENSES (114+137+143+146)	141	1895 632 232	CET.5BA FCO	2.034.033.492	622.460.161
XI. PROFIT OR LOSS BEFORE TAXATION (146-147)	148	204.336.448	111,455,326	127.179.386	57.267.196
1. Profit before taxation (146-147)	140	254 384 448	111.406.338	127.170.306	17.267.198
2. Loss before taxation (147-146)	150
XIL PROFIT TAX	151	25.064.751	5.767.536	4,554,760	3.995.017
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151).	152	179.321.687	105,707,791	122, 994, 546	61.165.213
1. Profit for the period (149-151)	153	179.321.687	105.707.791	122.504.545	£1.195.213
2. Loss for the pariod (161-148)	154	٠	$\Omega$	υ	g
APPENDIX to P&L scoount (to be filled in by entrepreneur that prepares consolidated financial report)
XIV, PROPIT OR LOSS FOR THE PERIOD
1. Attributed to equity holders of yarent company	155
2. Attributed to minority interest	195				ä
STATEMENT OF OTHER COMPREHENSIVE INCOME (FRS)
I: PROFIT OR LOSS FOR THE PERIOD (= 152)	157	179, 321, 687	105,707.19	122.594.548	81, 165, 213
IL OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAX (159 do 165)	188	439,357	439.337	293,583	$-293.960$
1. Exchange differences on translation of foreign operations.	1bb
2. Movements in revaluation reserves of long - term tongible and interpible assets	160
3. Profit or loss from resveluation of financial assets available for sale	161				ij
4. Gains or losses on efficient cash flow hadging	162			ü	$\hat{\mathbf{u}}$
5. Gains or losses on efficient hedge of a net investment in foreign countries	163				D
6. Share in other comprehensive income (loss of associated companies	154
7. Actuariel gains / losses 4h defined banefit plans	166	426,320	$-0.56$ .3.37	293,000	293,560
IL TAX ON OTHER COMPREHENSIVE INCOME FOR THE PERIOD	166
IV, NET OTHER COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (155-199)	167	438,350	458,557	093.664	293.580
V. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (157+167)	168	170.002.350	105,288,454	122,300,988	03.871.653
APPENDIX to Statement of other comprenhersive income (to be filled in by entrepreneur that prepares consciidated imancial report)
VI. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD
1. Attributed 10 equity holders of percent company	168
2. Attributed to minority interest	170

Item	AOP code	Last year (not)	Current year (net)
	2	з	×
ASSETS
A) RECEIVABLES FOR SUBSCRIBED BUT NOT PAID-IN CAPITAL	001
B) LONG-TERM ASSETS (003+010+020+029+033)	002	1.851.327.653	1.912.448.372
I. INTANGIBLE ASSETS (004 to 009)	003	107.755.978	92.249.491
1. Assets development 2. Concessions, patents, licences fees, trade and service marks, software and other rights	004 005	101.805.354	83.189.290
3. Goodwill	006
4. Prepayments for purchase of intangible assets	007
5. Intangible assets in preparation	008	5.950.624	9.060.201
6. Other intangible assets	009
II. TANGIBLE ASSETS (011 to 019)	010	850.156.418	827.301.621
1. Land	011	43.034.502	45.420.448
2. Buildings	012	473 435 374	455.299.171
3. Plant and equipment	013	263.555.792	264.871.519
4. Tools, facility inventory and transport assets	014	22.786.284	21,605.771
5. Biological assets	015
6. Prepayments for tangible assets	016	3.503,215	288.564
7. Tangible assets in progress	017	43.134.729	39.300.078
8. Other tangible assets	018	706.522	716.070
9. Investments in buildings	019
III. LONG-TERM FINANCIAL ASSETS (021 to 028)	020	867.752.211	959.515.702
1. Investments (shares) with related parties	021	808.073.131	946.700.274
2. Loans given to related parties	022	56.465.262	9.219.984
3. Participating interest (shares)	023	1.225.020	1,225,020
4. Loans to entrepreneurs in whom the entity holds participating interests	024
5. Investments in securities	025		Ō
6. Loans, deposits and similar assets	026	1.988.798	2.370.424
7. Other long - term financial assets	027		ũ o
8. Investments accounted by equity method IV. RECEIVABLES (030 to 032)	028	ö ō	ø
1.Receivables from related parties	029 030	ü	ö
2. Receivables from based on trade loans	031	ë	ō
3. Other receivables	032		Ö
V. DEFERRED TAX ASSETS	033	25.663.046	33.381.558
C) SHORT TERM ASSETS (035+043+050+058)	034	1.459.124.345	1.215.764.012
I. INVENTORIES (036 to 042)	035	478.624.430	479.169.009
1. Raw-material and supplies	036	111.860.293	117.037.485
2. Work in progress	037	42.880.135	44.313.087
3. Finished goods	038	140.823.462	140.886.458
4. Merchandise	039	42.841.093	43.379.267
5. Prepayments for inventories	040	a	$\Omega$
6. Long - term assets held for sales	041	140.419.456	133.552.712
7. Biological assets	042	ö
II. RECEIVABLES (044 to 049)	043	763.611.620	511,799.530
1. Receivables from related parties.	044	465.173.908	288.498.889
2. Accounts receivable	045	279.386.040	221,849.433
3. Receivables from participating parties	046	ö
4. Receivables from employees and members of related parties	047	733.464	645.019
5. Receivables from government and other institutions	048	7.744.536	674.630
6. Other receivables	049	10.573.672	131,559
III. SHORT TERM FINANCIAL ASSETS (051 to 057)	050	80.335.253	92.781.798
1. Shares (stocks) in related parties	051
2. Loans given to related parties	052	75.449.677	91.432.811
3. Participating interests (shares)	053	ű ä	0 $\ddot{\Omega}$
4. Loans to entrepreneurs in whom the entity holds participating interests	054 055	306,000	210.000
5. Investments in securities		2.544.119	627.489
6. Loans, deposits, etc. 7. Other financial assets	056 057	2.035.457	511.498
V. CASH AT BANK AND IN CASHIER	058	136.553.033	132.013.675
D) PREPAID EXPENSES AND ACCRUED REVENUE	059	6.155.104	3.640.252
E) TOTAL ASSETS (001+002+034+059)	060	3.316.607.102	3.131.852.636
F) OFF-BALANCE RECORDS	061		988.890.614 1.047.050.828

Obligator: Podravka prehrambena industrija d.d., Koprivnica
Item		Last year (net)	Current year (cwst)
я	×	з	¥
LIABILITIES AND CAPITAL
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	2.076.079.537	2.158.728.819
L SUBSCRIBED CAPITAL	063	1.566.400.660	1.566.400.660
II. CAPITAL RESERVES	064	185.313.851	182.267.472
III.RESERVES FROM PROFIT (066+067-068+069+070)	065	588,988,841	284,908,054
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	n
5. Other reserves	070	50.958.604	171.180.826
IV. REVALUATION RESERVES	071
V. RETAINED EARNINGS OR ACCUMULATED LOSS (073-074)	072	1,380,387	2,558,087
1. Retained earnings	073	1.360.387	2.558.087
2. Accumulated loss	074
VI. PROFITALOSS FOR THE CURRENT YEAR (076-077)	075	179.321.687	122,594,546
1. Profit for the current year	076	179.321.687	122,594,546
2. Loss for the current year	077	ö	αł
IX. MINORITY INTERESTS	078	ć	ol
B) PROVISIONS (080 to 082)	079	31.469.021	35.214.203
1. Provisions for pensions, severance pay, and similar liabilities	080	17,750,427	18.653.066
2. Reserves for tax liabilities	081
3. Other reserves	082	13,718,594	16.561.137
C) LONG - TERM LIABILITIES (084 to 092)	083	398.472.313	337, 601, 623
1. Liabilities to related parties	084	û	Ŭ.
2. Liabilities for loans, deposits etc.	085	Ō	ol
3. Liabilities to banks and other financial institutions.	0.06	398.472.313	337,601,623
4. Liabilities for received prepayments	087	Ū	o
5. Accounts payable	OBB	Ò	a
6. Lisbilities arising from debt securities	089	o	û
7. Liabilities to entrepreneurs in whom the entity holds participating interests	090	Ó	o
8. Other long-term liabilities	091	o	ā
9. Deferred tax liability	092	ó	ø
D) SHORT - TERM LIABILITIES (094 to 105)	093	771.097.403	560.696.346
1. Liabilities to related parties	094	156.585.983	51,446,509
2. Liabilities for loans, deposits etc.	095	324.985	393.087
3. Liabilities to banks and other financial institutions	096	233.177,632	182.542.931
4. Liabilities for received prepayments	097		n
5. Accounts payable	098	263.032.904	276.375.655
6. Liabilities arising from debt securities	099	82.720.318	o
7. Liabilities to entrepreneurs in whom the entity holds participating interests	100	n	ŭ
8. Liabilities to employees	101	30.943.833	32.411.495
9. Liabilities for taxes, contributions and similar fees	102	1.750.091	15.405.615
10. Liabilities to share - holders	103	676,368	1.493.324
11. Liabilities for long-term assets held for sale	104	$\Omega$
12. Other short - term liabilities	105	1.875.289	627.729
E) DEFFERED SETTLEMENTS OF CHARGES AND INCOME DEFERRED TO FUTURE PERIOD	106	39.488.828	39.611.645
F) TOTAL - CAPITAL AND LIABILITIES (062+079+083+093+106)	107	3.316.607.102	3.131.852.638
G) OFF-BALANCE RECORDS	108	906.890.614	1.047.050.820
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	Ŭ.	Ŭ
2. Attributed to minority interest	110	o	o

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

Item	AOP code	Last year	Current year
	$\overline{2}$	з	z
CASH FLOW FROM OPERATING ACTIVITIES
1. Profit before tax	001	204.386.448	127.179.306
2. Depreciation	002	98.480.805	95.206.442
3. Increase in short term liabilities	003	54,203,340
4. Decrease in short term receivables	004	ü	68.838.648
5. Decrease in inventories	005	25, 296, 645
6. Other increase in cash flow	006	17.622.253	156.082.816
I. Total increase in cash flow from operating activities (001 to 006)	007	397.979.491	447.307.212
1. Decrease in short term liabilities	008	ől	41.406.206
2. Increase in short term receivables	009	17.264.463
3. Increase in inventories	010	õl	7.411.314
4. Other decrease in cash flow	011	152,983,083	206.652.944
II. Total decrease in cash flow from operating activities (008 to 011)	012	170,247,546	255,470,464
A1) NET INCREASE IN CASH FLOW FROM OPERATING ACTIVITIES (007-012)	013	227.731.945	191.836.748
A2) NET DECREASE IN IN CASH FLOW FROM OPERATING ACTIVITIES (012-007)	014	ol	ö
CASH FLOW FROM INVESTING ACTIVITIES
1. Cash inflows from sales of long-term tangible and intangible assets	015	34.338.691	3.730.962
2. Cash inflows from sales of equity and debt instruments	016	52,878,266
3. Interests receipts	017	8.651.988	3.264.239
4. Dividend receipts	018	d	50.016.182
5. Other cash inflows from investing activities	019	207.680.837	16.199.170
III. Total cash inflows from investing activities (015 to 019)	020	303.549.782	73,210,553
1. Cash outflow for purchase of long-term tangible and intangible assets	021	130.853.911	71.701.726
2. Cash outflow for acquisition of equity and debt financial instruments	022	12,679.054	1,375,600
3. Other cash outflow for investing activities	023	143.066.566	48.405.269
IV. Total cash outflow for investing activities (021 do 023)	024	286.599.531	121.482.595
B1) NET INCREASE IN CASH FLOW FROM INVESTING ACTIVITIES (020-024)	025	16.950.251
B2) NET DECREASE IN CASH FLOW FROM INVESTING ACTIVITIES (024-020)	026	o	48.272.042
CASH FLOW FROM FINANCIAL ACTIVITIES
1. Cash inflow from issuing property and debt financial instruments	027	o
2. Proceeds from the credit principal, promissory notes, borrowings and other loans	028	464.565.826	161.823.957
3. Other proceeds from financial activities	029	3.307.617	6.945.454
V. Total cash inflows from financial activities (027 to 029)	030	467.873.443	168,769,411
1. Cash outflow for repayment of credit principal and bonds	031	608.555.971	268.231.154
2. Cash outflow for dividends paid	032	48.479.634	48.642.321
3. Cash outflow for financial lease	033	1.403.467
4. Cash outflow for purchase of treasury shares	034	12,977,357
5. Other cash outflow for financial activities	035
VI. Total cash outflow for financial activities (031 to 035)	036	671.416.429	316.873.475
C1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES (030-036)	037
C2) NET DECREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES (036-030)	038	203.542.986	148.104.064
Total increase in cash flow (013 - 014 + 025 - 026 + 037 - 038)	039	41.139.210
Total decrease in cash flow (014 - 013 + 026 - 025 + 038 - 037)	040		4.539.358
Cash and cash equivalents at the beginning of the period	041	95.413.823	136.553.033
Increase of cash and cash equivalents	042	41.139.210
Decrease of cash and cash equivalents	043		4.539.358
Cash and cash equivalents at the end of the period	044	136.553.033	132.013.675

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

Obligator: Podravka prehrambena industrija d.d., Koprivnica
Item		Last year	Current year
	$\mathbf{z}$
1. Subscribed capital	001	1.566.400.660	1.566.400.660
2. Capital reserves	002	185,313,851	182.267.472
3. Reserves from profit	003	143 682 952	284.908.054
4. Retained samings or accumulated loss	004	1.360.387	2.558.087
5. Profit or loss for the current year	005	179.321.687	122.594.546
6. Revaluation of long - term tangible assets	006		O)
7. Revaluation of intangible assets	007		o
8. Revaluation of financial assets available for sale	008		ö
9. Other revaluation	009		Ö.
10. Total capital and reserves (AOP 001 do 009)	010	2.076.079.537	2,158.728.819
11. Currency gains and losses arising from net investement in foreign operations	011		Ũ.
12. Current and deferred taxes (part)	012		Ō
13. Cash flow hedging	013		o
14. Changes in accounting policy	014		o
15. Correction of significant errors in prior period	015		n
16. Other changes of capital	016	125,706,826	82.649.282
17. Total increase or decrease in capital (AOP 011 do 016)	017	125.706.826	82.649.282
17 a. Attributed to equity holders of parent company	018		Ü.
17 b. Attributed to minority interest	019		O.

Notes to the financial statements:

The accounting policy in 2017 did not change.

STATEMENT FROM EXECUTIVES RESPONSIBLE FOR PREPARING FINANCIAL STATEMENTS

Koprivnica, 28 February 2018

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