Podravka d.d. — Interim / Quarterly Report 2019

Apr 30, 2019

Koprivnica, 30 April 2019

PODRAVKA D.D. BUSINESS RESULTS FOR 1-3 2019 PERIOD

Content:

• General information
• Management report on the achieved business results of Podravka d.d. for the 1-3 2019 period
• Unconsolidated financial reports for the 1-3 2019 period
• Statement from executives responsible for preparing financial statements
• Contact

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.

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

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

Management Board members as at 31 March 2019

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

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

Koprivnica, 30 April 2019

MANAGEMENT REPORT ON THE ACHIEVED BUSINESS RESULTS OF PODRAVKA D.D. FOR THE 1-3 2019 PERIOD

Key business highlights of the 1-3 2019 period

In 1-3 2019, Podravka d.d. recorded operating income of HRK 496.7 million, which is 7.0% higher than in the same period of the previous year. The growth in sales revenues came on the back of stronger selling and marketing activities, demand for newly launched products and expansion of distribution of certain categories. Total operating expenses are 7.4% higher, primarily due to higher sales realised and higher staff costs as a consequence of the planned improvement of employees' material rights. Higher sales realised and a better sales mix resulted in positive HRK 56.6 million of operating profit, which is a 3.5% growth compared to the same period of the previous year.

In 1-3 2019, finance income of HRK 5.5 million was recorded, with HRK 5.6 million of finance expenses, while the effective tax rate was 18.2%. Profit for the period in 1-3 2019 amounted to HRK 46.2 million.

As at 31 March 2019, total assets of Podravka d.d. amount to HRK 3,010.5 million, 0.6% higher compared to the end of 2018. Significant change on the assets side was in line items land and tools, working inventory and transportation assets due to the implementation of the new accounting standard IFRS 16. In addition, the line item receivables from undertakings within the group is growing due to higher sales to related companies. The increase in the above mentioned line items is partly reduced by the decrease in the position cash at bank and in hand. On the equity and liabilities side, the most significant increase was recorded in the line item retained earnings, while a significant decrease was recorded by trade payables.

Cash flow from operating activities in 1-3 2019 amounted to positive 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 12.2 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 51.2 million due to the repayment of a portion of borrowings. In total, in 1-3 2019 cash and cash equivalents decreased by HRK 49.7 million, and consequently the amount of cash and cash equivalents as at 31 March 2019 was HRK 18.5 million.

UNCONSOLIDATED FINANCIAL REPORTS FOR THE 1-3 2019 PERIOD

Annex 1		ISSUER'S GENERAL DATA
Reporting period:		1.1.2019	to	31.3.2019
Year:		2019.
Quarter:		1.
		Quarterly financial statements
gistration number (MB):	03454088		Issuer's home Member State code:	HR
Entity's registration number (MBS):	010006549
Personal identification number (OIB):	18928523252		LEI:	549300TMC6BYESPQ7W85
Institution code:	1627
		Name of the issuer: PODRAVKA prehrambena industrija d.d., KOPRIVNIČA
Postcode and town:	48000		KOPRIVNICA
reet and house number: ANTE STARCEVIĆA 32
	E-mail address: podravka@podravka.hr
Number of employees	Web address: www.podravka.com
(end of the reporting Consolidated report: KN Audited: RN	3214	(KN-not consolidated/KD-consolidated) (RN-not audited/RD-audited)
Names of subsidiaries (according to IFRS):			Registered office:		MB:
	Bookkeeping firm: No No (Yes/No)
		Contact person: Artner Kukec Julijana --------------------		(name of the bookkeeping firm) White unters and and and the may be
	Telephone: 048 653 055	(only name and surname of the contact person)
		E-mail address: Julijana.ArtnerKukec@podravka.hr
	(name of the audit firm)	Audit firm: KPMG Croatia d.o.o. za reviziju -----		開始 和 則 開發

oubmitter. FODKAVNA premambena muustilja d.u., NOFNIVINOA Item	ADP	Same period of the previous year		Current period
	code	Cumulative	Quarter	Cumulative	Quarter
1 1 31 5 5 5 3	2 1	3	11 4 12	12 1 5 13 3 13 13 13 13	6 6 1
OPERATING INCOME (ADP 126 to 130)	125	464.385.789	464.385.789	496.708.736	496.708.736
1 Income from sales with undertakings within the group	126	188.331.949	188.331.949	204.498.820	204.498.820
2 Income from sales (outside group)	127	264.491.037	264.491.037	279.505.666	279.505.666
3 Income from the use of own products, goods and services	128	5.331.795	5.331.795	5.861.480	5.861.480
4 Other operating income with undertakings within the group	129	514.226	514.226	564.357	564.357
5 Other operating income (outside the group)	130	5.716.782	5.716.782	6.278.413	6.278.413
II OPERATING EXPENSES (ADP 132+133+137+141+142+143+146+153)	131	409.710.303	409.710.303	440.113.546	440.113.546
1 Changes in inventories of work in progress and finished goods	132	3.993.764	3.993.764	-5.835.938	-5.835.938
2 Material costs (ADP 134 to 136)	133	285.065.217	285.065.217	313.282.957	313.282.957
a) Costs of raw materials and consumables	134	186.444.198	186.444.198	198.548.059	198.548.059
b) Costs of goods sold	135	65.942.060	65.942.060	81.442.501	81.442.501
c) Other external costs	1 36	32.678.959	32.678.959	33.292.397	33.292.397
3 Staff costs (ADP 138 to 140)	137	87.037.346	87.037.346	91.063.170	91.063.170
a) Net salaries and wages	138	56.303.120	56.303.120	60.884.416	60.884.416
b) Tax and contributions from salary costs	139	18.795.899	18.795.899	18.882.040	18.882.040
c) Contributions on salaries	140	11.938.327	11.938.327	11.296.714	11.296.714
4 Depreciation	141	22.097.258	22.097.258	23.716.234	23.716.234
5 Other costs	142	8.158.615	8.158.615	10.289.150	10.289.150
6 Value adjustments (ADP 144+145)	143	-351.288	-351.288	1.520.800	1.520.800
a) fixed assets other than financial assets	144	-1.418	-1.418		O
b) current assets other than financial assets	145	-349.870	-349.870	1.520.800	1.520.800
7 Provisions (ADP 147 to 152)	146	820.335	820.335	314.298	314.298
a) Provisions for pensions, termination benefits and similar obligations	147	0	0	0	0
b) Provisions for tax liabilities	148	0	0	0	0
c) Provisions for ongoing legal cases	149	820.335	820.335	314.298	314.298
d) Provisions for renewal of natural resources	150	0	0	0	0
e) Provisions for warranty obligations	151	0	0	0	0
f) Other provisions	152	0	0	0	0
8 Other operating expenses	153	2.889.056	2.889.056	5.762.875	5.762.875
III FINANCIAL INCOME (ADP 155 to 164) ========================================================================================================================================	154	13.614.320	13.614.320	5.532.426	5.532.426
1 Income from investments in holdings (shares) of undertakings within the group	ન રેટિટ	0	O	0	0
2 Income from investments in holdings (shares) of companies linked by virtue of participating interests	156	0	0	0	0
3 Income from other long-term financial investment and loans granted to undertakings within the group	157	0	0	0	0
4 Other interest income from operations with undertakings within the group	158	1.813.348	1.813.348	1.124.102	1.124.102
5 Exchange rate differences and other financial income from operations with undertakings within the group	159	5.317.676	5.317.676	3.241.989	3.241.989
6 Income from other long-term financial investments and loans	160	0	0	0	0
7 Other interest income	161	209.202	209.202	58.347	58.347
8 Exchange rate differences and other financial income	162	5.961.003	5.961.003	935.283	935.283
9 Unrealised gains (income) from financial assets	163	313.091	313.091	172 705	172.705
10 Other financial income	164				0
IV FINANCIAL EXPENSES (ADP 166 to 172)	ે રેણે ર	14.769.708	14.769.708	5.582.374	5.582.374
1 Interest expenses and similar expenses with undertakings within the group	166	1.507.149	1.507.149	1.241.146	1.241.146
2 Exchange rate differences and other expenses from operations with undertakings within the group	167	8.907.277	8.907.277	1.043.954	1.043.954
3 Interest expenses and similar expenses	168	1.964.732	1.964.732	1.402.721	1.402.721
4 Exchange rate differences and other expenses	169	2.390.550	2.390.550	1.283.561	1.283.561
5 Unrealised losses (expenses) from financial assets	170	0	O	610.992	610.992
6 Value adjustments of financial assets (net)	171	0	0	0	0
7 Other financial expenses SHARE IN PROFIT FROM UNDERTAKINGS LINKED BY VRITUE OF	172	0	O	0	0
PARTICIPATING INTERESTS	173	0	O	0	0
SHARE IN PROFIT FROM JOINT VENTURES VI	174	0	0	0	0
VII SHARE IN LOSS OF COMPANIES LINKED BY VIRTUE OF
PARTICIPATING INTEREST	175	0	0	0	0
VIII SHARE IN LOSS OF JOINT VENTURES	176	0	0	0	0
IX TOTAL INCOME (ADP 125+154+173 + 174)	177	478.000.109	478.000.109	502.241.162	502.241.162
X TOTAL EXPENDITURE (ADP 131+165+175 + 176)	178	424.480.011	424.480.011	445.695.920	445.695.920
XI PRE-TAX PROFIT OR LOSS (ADP 177-178)	179	53.520.098	53.520.098	56.545.242	56.545.242
1 Pre-tax profit (ADP 177-178)	180	53.520.098	53.520.098	56.545.242	56.545.242
2 Pre-tax loss (ADP 178-177)	181	SAREA O	Concession of the program and the comments 0	0 contraction 0	0 - 10 - 10 - 10 - 10
XII INCOME TAX	182	9.845.706	9.845.706	10.295.553	10.295.553
XIII PROFIT OR LOSS FOR THE PERIOD (ADP 179-182)	183	43.674.392	43.674.392	46.249.689	46.249.689
1 Profit for the period (ADP 179-182)	184	43.674.392	43.674.392	46.249.689	46.249.689
2 Loss for the period (ADP 182-179)	185	0	O	0	0

PODRAVKA Inc., Koprivnica, Ante Starčevića 32, The Commercial Court in Bjelovar, 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

III HIKA Submitter: PODRAVKA prehrambena industrija d.d., KOPRIVNICA
Item	ADP code	Last day of the preceding business year	At the reporting date of the current period
	2	38
A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID	001	0 2.001.729.017
B) FIXED ASSETS (ADP 003+010+020+031+036) I INTANGIBLE ASSETS (ADP 004 to 009)	002 003	83.550.892	2.033.768.430 83.857.589
1 Research and development	004	O
2 Concessions, patents, licences, trademarks, software and other	005	82.012.693	78.942.178
rights 3 Goodwill	006
4 Advances for the purchase of intangible assets	007	0 0	0 0
5 Intangible assets in preparation	008	1.538.199	4.915.411
6 Other intangible assets	009	0	0
II TANGIBLE ASSETS (ADP 011 to 019)	010	943.805.991	975.774.917
1 Land 2 Buildings	011 012	45.420.448 438.893.781	58.153.357 437.431.589
3 Plant and equipment	013	251.711.854	243.519.131
4 Tools, working inventory and transportation assets	014	24.059.995	45.609.023
5 Biological assets	015	0
6 Advances for the purchase of tangible assets	016	285.258	793.575
7 Tangible assets in preparation	017	60.854.260	68.058.667
8 Other tangible assets 9 Investment property	018 019	714.344 121.866.051	710.354 121.499.221
III FIXED FINANCIAL ASSETS (ADP 021 to 030)	020	944.698.747	944.383.265
1 Investments in holdings (shares) of undertakings within the group	021	939.068.333	939.081.005
2 Investments in other securities of undertakings within the group	022	0
3 Loans, deposits, etc. to undertakings within the group	023	5.283.130	4.957.491
4. Investments in holdings (shares) of companies linked by virtue of participating interests	024	0	0
5 Investment in other securities of companies linked by virtue of participating interests 6 Loans, deposits etc. to companies linked by virtue of participating	025	0	0
interests	026	0	0
7 Investments in securities	027	140.500	140.500
8 Loans, deposits, etc. given	028	206.784	204.269
9 Other investments accounted for using the equity method 10 Other fixed financial assets	029 030	0 0	0 0
IV RECEIVABLES (ADP 032 to 035)	031	0	0
1 Receivables from undertakings within the group	032	0	0
2 Receivables from companies linked by virtue of participating interests	033	0	0
3 Customer receivables	034	0	0
4 Other receivables	035	0	0
V DEFERRED TAX ASSETS C) CURRENT ASSETS (ADP 038+046+053+063)	036 037	29.673.387	29.752.659
I INVENTORIES (ADP 039 to 045)	038	987.808.109 369.330.573	972.748.216 374.237.889
1 Raw materials and consumables	039	140.914.574	138.376.746
2 Work in progress	040	27.699.930	27.988.855
3 Finished goods	041	154.115.542	159.931.777
4 Merchandise	042	45.525.456	46.865.440
5 Advances for inventories 6 Fixed assets held for sale	043	0 1.075.071
7 Biological assets	044 045	0	1.075.071
II RECEIVABLES (ADP 047 to 052)	046	488.945.847	518.444.086
1 Receivables from undertakings within the group	047	280.402.725	310.195.621
2 Receivables from companies linked by virtue of participating interests	048	0	0
3 Customer receivables	049	200.165.110	206.339.440
4 Receivables from employees and members of the undertaking	050	512.864	845.667
5 Receivables from government and other institutions 6 Other receivables	051 052	7.737.922 127.226	756.509 306.849
III CURRENT FINANCIAL ASSETS (ADP 054 to 062)	053	61.365.184	61.558.809
1 Investments in holdings (shares) of undertakings within the group	054	0	0
2 Investments in other securities of undertakings within the group	025	0	0
3 Loans, deposits, etc. to undertakings within the group	056	61.069.474	61.541.878
4 Investments in holdings (shares) of companies linked by virtue of participating interests	057	0	0
5 Investment in other securities of companies linked by virtue of	058	0	0
participating interests 6 Loans, deposits etc. to companies linked by virtue of participaling
interests	059	0	0
7 Investments in securities	060	295.710	16.931
8 Loans, deposits, etc. given 9 Other financial assets	061 062	0 0	0 0
IV CASH AT BANK AND IN HAND	063	68.166.505	18.507.432
D ) PREPAID EXPENSES AND ACCRUED INCOME	064	4.510.408	4.030.921
E) TOTAL ASSETS (ADP 001+002+037+064)	065	2.994.047.534	3.010.547.567
OFF-BALANCE SHEET ITEMS	066	1.048.180.995	1.029.058.041

PODRAVKA Inc., Koprivnica, Ante Starčevića 32, The Commercial Court in Bjelovar, 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	ADP code	Last day of the preceding business year	At the reporting date of the current period
877	2	3 23	4 1 3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
LIABILITIES
A) CAPITAL AND RESERVES (ADP 068 to	067	2.189.169.838	2.235.419.527
I INITIAL (SUBSCRIBED) CAPITAL	068	1.566.400.660	1.566.400.660
II CAPITAL RESERVES	069	177.874.586	177.874.586
III RESERVES FROM PROFIT (ADP 071+072-073+074+075)	070	328.057.266	328.057.266
1 Legal reserves	071	30.947.466 147.604.502	30.947.466 147.604.502
2 Reserves for treasury shares	072 073	-54.209.463	-54.209.463
3 Treasury shares and holdings (deductible item) 4 Statutory reserves	074	0	0
5 Other reserves	075	203.714.761	203.714.761
IV REVALUATION RESERVES	076	0	0
V FAIR VALUE RESERVES (ADP 078 to 080)	077	0	0
1 Fair value of financial assets available for sale	078	0	0
2 Cash flow hedge - effective portion	079	0	0
3 Hedge of a net investment in a foreign operation - effective portion	080	0	0
VI RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 082- 083)	081	3.696.000	116.837.326
1 Retained profit	082	3.696.000	116.837.326
2 Loss brought forward	083	0	0
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 085-086)	084	113.141.326	46.249.689
1 Profit for the business year	085	113.141.326	46.249.689
2 Loss for the business year	086	0	0
VIII MINORITY (NON-CONTROLLING) INTEREST	087	0	0
B) PROVISIONS (ADP 089 to 094)	088	32.817.905	33.077.942
1 Provisions for pensions, termination benefits and similar obligations	089	19.811.677	19.811.677
2 Provisions for tax liabilities	090	0	0
3 Provisions for ongoing legal cases	091	13.006.228	13.266.265
4 Provisions for renewal of natural resources	092	0	0
5 Provisions for warranty obligations	093	O	0
6 Other provisions	094	0	0
C) LONG-TERM LIABILITIES (ADP 096 to 106)	095	181.202.712	172.245.136
1 Liabilities to undertakings within the group	096	0	0
2 Liabilities for loans, deposits, etc. of undertakings within the group	097	0	0
3 Liabilities to companies linked by virtue of participating interests 4 Liabilities for loans, deposits etc. of companies linked by virtue of	098 099	0 0	0 0
participating interests
5 Liabilities for loans, deposits etc.	100	0	0
6 Liabilities to banks and other financial institutions	101	181.202.712	172.245.136
7 Liabilities for advance payments	102	0 0	0 0
8 Liabilities to suppliers 9 Liabilities for securities	103 104	0	0
10 Other long-term liabilities	105	0	0
11 Deferred tax liability	106	0	0
D) SHORT-TERM LIABILITIES (ADP 108 to 121)	107	542.996.031	503.544.672
1 Liabilities to undertakings within the group	108	39.997.328	42.355.214
2 Liabilities for loans, deposits, etc. of undertakings within the group	109	29.720.699	29.750.682
3 Liabilities to companies linked by virtue of participating interests	110	0	0
4 Liabilities for loans, deposits etc. of companies linked by virtue of	111	0	0
participating interests
5 Liabilities for loans, deposits etc.	112	605.256	595.577
6 Liabilities to banks and other financial institutions	113	176.901.761	178.576.316
7 Liabilities for advance payments	114	0	O
8 Liabilities to suppliers	115 116	245.821.222 25.228	186.801.894 357.441
9 Liabilities for securities 10 Liabilities to employees	117	34.661.926	30.084.157
11 Taxes, contributions and similar liabilities	118	12.830.510	32.829.140
12 Liabilities arising from the share in the result	119	1.470.793	1.456.067
13 Liabilities arising from fixed assets held for sale	120	0	0
14 Other short-term liabilities	121	961.308	738.184
E) ACCRUALS AND DEFERRED INCOME	122	47.861.048	66.260.290
F) TOTAL - LIABILITIES (ADP 067+088+095+107+122)	123	2.994.047.534	3.010.547.567
OFF-BALANCE SHEET ITEMS G)	124	1.048.180.995	1.029.058.041

Submitter: PODRAVKA prehrambena industrija d.d., KOPRIVNIČA Item	ADP	Same period of the	Current period
	code	previous year
1 1 1 2 1 1	2	3 . 2	1 4 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Cash flow from operating activities 1 Pre-tax profit	001	53.520.098	56.545.242
2 Adjustments (ADP 003 to 010):	002	19.342.493	27.977.547
a) Depreciation	003	22.097.258	23.716.234
b) Gains and losses from sale and value adjustment of fixed tangible and intangible assets	004	-77.157	-25.220
c) Gains and losses from sale and unrealised gains and losses and value adjustment of financial assets	005	-209.506	2.030.507
d) Interest and dividend income	006	-1.887.749	-1.176.246
e) Interest expenses	007	3.535.950	2.724.526
f) Provisions	008	-918.342	529,283
g) Exchange rate differences (unrealised) h) Other adjustments for non-cash transactions and unrealised gains and	009 010	-3.197.961 0	178.463 0
losses I Cash flow increase or decrease before changes in working capital
(ADP 001+002)	011	72.862.591	84.522.789
3 Changes in the working capital (ADP 013 to 016)	012	-91.812.978	-67.143.854
a) Increase or decrease in short-term liabilities	013	-89.515.937	-32.733.986
b) Increase or decrease in short-term receivables	014	3.910.479	-29.502.552
c) Increase or decrease in inventories	015	-6.207.520	-4.907.316
d) Other increase or decrease in working capital	016
Il Cash from operations (ADP 011+012)	017	-18.950.387	17.378.935
4 Interest paid 5 Income tax paid	018	-4.140.138	-2.848.428
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019)	019 020	-40.654 -23.131.179	-870.991 13.659.516
Cash flow from investment activities 1 Cash receipts from sales of fixed tangible and intangible assets	021	168.516	25.220
2 Cash receipts from sales of financial instruments	022	C	0
3 Interest received	023	413.151	79.419
4 Dividends received	024
5 Cash receipts from repayment of loans and deposits	025	104.343	4.686
6 Other cash receipts from investment activities	026	0
Ill Total cash receipts from investment activities (ADP 021 to 026)	027	686.010	109.325
1 Cash payments for the purchase of fixed tangible and intangible assets	028	-12.013.499	-12.251.870
2 Cash payments for the acquisition of financial instruments	029	0
3 Cash payments for loans and deposits for the period	030	-3.044.083
4 Acquisition of a subsidiary, net of cash acquired	031	-5.360	-12.672
5 Other cash payments from investment activities	032	0
IV Total cash payments from investment activities (ADP 028 to 032)	033	-15.062.942	-12.264.542
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033)	034	-14.376.932	-12.155.217
Cash flow from financing activities 1 Cash receipts from the increase in initial (subscribed) capital	035	0
2 Cash receipts from the issue of equity financial instruments and debt financial instruments	036	0
3 Cash receipts from credit principals, loans and other borrowings	037	0	35.309.873
4 Other cash receipts from financing activities	038	0
V Total cash receipts from financing activities (ADP 035 to 038)	039	0	35.309.873
1 Cash payments for the repayment of credit principals, loans and other borrowings and debt financial instruments	040	-60.916.595	-83.711.969
2 Cash payments for dividends	041	0	0
3 Cash payments for finance lease	042	0	0
4 Cash payments for the redemption of treasury shares and decrease in	043	0	0
initial (subscribed) capital
5 Other cash payments from financing activities	044	0	-2.761.276
VI Total cash payments from financing activities (ADP 040 to 044)	045	-60.916.595	-86.473.245
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045)	046	-60.916.595	-51.163.372
1 Unrealised exchange rate differences in respect of cash and cash equivalents	047	0	0
D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP 020+034+046+047)	048	-98.424.706	-49.659.073
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	049	132.013.675	68.166.505
F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD(ADP 048+049)	050	33.588.969	18.507.432

PODRAVKA Inc., Koprivnica, Ante Starčevića 32, The Commercial Court in Bjelovar, 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

as also bearing li child in the property	SIMILY IS												in HRK
	100	Intelling Advertber			armal for	GUT THE LAND and holding	Aturbutable to aveners of the parant	air value of icial assots, allable for sale	Cash now hadge affactive portio	simed profit ! ille brought A Schilder		ALL 22, 52, 2017
												15 (3 10 5 )
Previous period												2017 15:55		And 36 Mark 2 3
1 Balance on the first day of the previous business year 2 Changes in accounting policies	01 02	1.566.400.660	182.267.472	26.625.605	147.604.502	60.502.679	171.180.626			88.995.306		2.122.571.492		2,122,571,492
3 Correction of errors 4 Balance on the first day of the previous business year (restated) (ADP 01 to 03)	03 04	1.566.400.660	182.267.472	26.625.605	147.604.502	60.502.679	171.180.626			88,995,306		2.122.571.492		2.122.571.492
5 Profit/loss of the period 6 Exchange rate differences from translation of foreign operations	05 06										113.141.326	113.141.326		113.141.326
7 Changes in revaluation reserves of fixed tangible and intangible assets 8 Profit or loss arising from subsequent measurement of financial assets available for sale	07 08										11/11/1
9 Profit or loss arising from effective cash flow hedge 10 Profit or loss arising from effective hedge of a net investment in a foreign operation	09
11 Share in other comprehensive income/loss of companies linked by virtue of participating interests	11
12 Actuarial gains/losses on the defined benefit obligation	12						315.607
13 Other changes in equity unrelated to owners	13											315.607		315.607
14 Tax on transactions recognised directly in equity	14						-56.809
15 Increase/decrease in initial (subscribed) capital (other than from reinvesting profit and other than arising from the pro-bankruptcy settlement procedure)	15		-4.392.886									-56,800 -4.392.886		-56,809 -4.392.886
I 6 Increase in initial (subscribed) capital arising from the reinvestment of profit	46
17 Increase in initial (subscribed) capital arising from the pre-bankruptcy settlement procedure	17
18 Redemption of treasury shares/holdings	18					2.557.031
19 Payment of share in profit/dividend	19					-8.850.247						-2.557.031		-2.557.031
0 Other distribution to owners	20									-48.702.108		-39.851.86		-39.851.861
I Transfer to reserves according to the annual schedule	21			4.321.861			32.275.337
22 Increase in reserves arising from the pre-bankruptcy settlement procedure	22									-36.597.198
23 Balance on the last day of the previous business year reporting period (04 to 22)	23	1,566.400,660	177.874.586	30.947.466	147.604.502	54.209.463	203.714.761			3.696.000	113.141.326	2.189.169.838		2.189.169.838
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the lFRS)
I OTHER COMPREHENSIVE INCOME OF THE PREVIOUS PERIOD, NET OF FAX (ADP 06 to 14)	24						258.798					258.798		258.798
II COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD ADP 05+24)	25						258.798				113.141.326	113.400.124		113,400,124
III TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD RECOGNISED DIRECTLY IN EQUITY (ADP 15 to 22)	26		-4.392 886	4.321,861		-6.293.216	32,275,337			-85.299.306		-46.801.778		-46.801.778

PODRAVKA Inc., Koprivnica, Ante Starčevića 32, The Commercial Court in Bjelovar, 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

			Attributable to oveners of the parts
						A THE A CHE CALL				For value of					and the this below of
			Capital resorves	Legal roservas	Roservas for freasury shares	and holdings from of plant	المشتركة المستوى المنتخب المنتخب المنتخب المنتخب المنتخب المنتخب المنتخب المنتخب المنتخب المنتخب المنتخب المنتخب المنتخب المنتخب المنتخب المنتخب المنتخب المنتخب المنتخب المن		Reveluation Toplavas	Thancial assots	Cash flow hadge - effective polition	Redge of a real Linceliment in Cyclin operation Cycliga operation	Retained profit /	Proditions for the The There years
										available for sale
															16 - 12 - 12 - 12		75 115 27
Current period
1 Balance on the first day of the current business year	27	1.566.400.660	177.874.586	30.947.466	147.604.502	54.209.463		203.714.761					116.837.326		2.189.169.838		2.189.169.838
2 Changes in accounting policies	28
3 Correction of errors	29
4 Balance on the first day of the current business year (restated) (ADP 27	30	1.566.400.660	177.874.586	30.947.466	147.604.502	54.209.463		203.714.761					116.837.326		2.189,169,838		2.189 169,838
to 29) 5 Profit/loss of the period	31													46.249.689	46.249.689		46.249.689
6 Exchange rate differences from translation of foreign operations	32
7 Changes in revaluation reserves of fixed tangible and intangible assets	33
8 Profit or loss arising from subsequent measurement of financial assets available for sale	34
9 Profit or loss arising from effective cash flow hedge	35
10 Profit or loss arising from effective hedge of a net investment in a foreign operation	36
11 Share in other comprehensive income/loss of companies linked by virtue of participating interests	37
12 Actuarial gains/losses on the defined benefit obligation	38
13 Other changes in equity unrelated to owners	39
14 Tax on transactions recognised directly in equity	40
15 Increase/decrease in initial (subscribed) capital (other than from reinvesting profit and other than ansing from the pre-bankruptcy settlement procedure)	41
16 Increase in initial (subscribed) capital arising from the reinvestment of profit	42
17 increase in initial (subscribed) capital arising from the pro-bankruptcy settlement procedure	43
18 Redemption of treasury shares/holdings	44
19 Payment of share in profit/dividend	45
20 Other distribution to owners	46
21 Transfer to reserves according to the annual schedule	47
22 Increase in reserves arising from the pre-bankruptcy settlement procedure	48
23 Balance on the last day of the current business year reporting period (ADP 30 to 48)	49	1.566.400.660	177.874.586	30.947.466	147.604.502	54.209.463		203.714.761					116.837.326	46.249.689	2.235.419.527		2.235.419.527
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the FRS)
I OTHER COMPREHENSIVE INCOME FOR THE CURRENT PERIOD, NET OF TAX (ADP 32 to 40)	50
II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP	51													46.249.689	46.249.689		46.249.689
31+50) III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED DIRECTI Y IN FOUITY (ADP 41 In 48)	52

Notes to the financial statements:

From 1 January 2019 Podravka d.d. applies IFRS 16 Leases. According to new standard, Podravka d.d. recognises right-of-use assets based on cost method, and leases liability in amount of present value of minimum future lease payments. Exceptions from this recognition is applied for short term leases and leases of low value asset. Right-of-use asset is depreciated by the end of asset's useful life, and lease liabilities are measured at the effective interest rate method. In the statement of financial position, right-of-use assets are included within tangible asset and lease liabilities are reported within long term and short-term liabilities. As at 31 March 2019 value of Podravka d.d. right-of-use asset amounts to HRK 40.8 mil. and lease liabilities amounts to HRK 41.2 mil.

STATEMENT FROM EXECUTIVES RESPONSIBLE FOR PREPARING FINANCIAL STATEMENTS

Koprivnica, 30 April 2019

Contact

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

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