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Span d.d.

Interim / Quarterly Report Jul 29, 2022

2101_10-q_2022-07-29_029fbd49-c6d4-4ff8-a8ce-8650b9a436a4.pdf

Interim / Quarterly Report

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Contents

1. Management Interim Report – Management Report 3
1.1. Statement of Dragan Marković, member of the Management
Board, Chief Operating Officer 4
1.2. Corporate Events 6
1.2.1. Incorporation of Fintech Digital Services LLC. 6
1.2.2. Decision on the use of profits and payment of dividends 6
1.2.3. Release of own shares – Remuneration programme 6
1.2.4. General Assembly of Span d.d. – Invitation and Decisions 6
1.2.5 Corporate Governance Code – Annual Compliance Questionnaire for 2021 7
1.3. People and the community 7
1.3.1. Human resources – intense employment and increased satisfaction 7
1.3.2. Corporate social responsibility 9
1.4. Awards, recognitions, partnerships 11
1.4.1. Microsoft Advanced Specializations 11
1.4.2. Microsoft competences 12
1.4.3. TOV Span from Ukraine receieved 2022 Microsoft Ukraine
Partner of the Year Award 12
2. Financial indicators for the first half-year of 2022
2.1.
2.2.
Operating revenue, EBITDA and net profit of Span Group
Operating revenue, EBITDA and net profit of Span d.d.
2.3. Key features of the period – first half-year of 2022
2.4. Revenues by segments 13
14
14
15
17
2.5. Revenues by geography
2.6. Balance sheet
2.7. Cash flow 18
19
22
2.8. Operation of TOV Span Ukraine 22
3. Financial statements of the Span Group and Span d.d.
4. Notes
4.1. Notes accompanying Financial Statements
5. Statement on responsibility for compiling a report
in the observed period
25
38
38
39

UNAUDITED FINANCIAL STATEMENTS OF SPAN GROUP AND SPAN D.D. / JANUARY − JUNE 2022

1.

Management Interim Report – Management Report

1.1. Statement of Dragan Marković, member of the Management Board, Chief Operating Officer

My main task in Span as the Chief Operating Officer is to ensure that everything functions, at all levels. This is a complex task in a branch that is far from being predictable, where advancement requires you to have a vision, knowledge and good relationship with all stakeholders while never forgetting what really drives you, or that you should never lose that specific Span drive, which has led all of us to the development phase Span is experiencing today.

When I look at the results accomplished in the past period alone – number of events, activities, undertakings, brilliant things … – I become aware of how deeply the change is actually rooted in the Span identity, culture, in all of us. I would even dare to say that Span employees possess an inexhaustible capacity for change – it makes us happy, encourages us to learn and explore, move limits, conceive new solutions, reconsider how we can do things better and in a different way. It encourages us to be brave.

I am happy that we have continued to grow in all segments of business operations in this second quarter as well, or in the first half year. That growth is also accompanied with positive financial results; operating revenues have grown by 4% and amount to HRK 406.9 million, whereas EBITDA before one-off items increased by 101% and is HRK 35.7 million. The achieved net profit is HRK 24.5 million, a 230% increase compared to the same period of the prior year.

We are additionally encouraged by the fact that the regular trading with our shares has continued. On this occasion, I would like to thank all our shareholders to whom we presented our results and plans at the General Assembly in June, the first after we were listed on the stock exchange.

After the acquisition of Ekobit in March, we dedicated ourselves to the integration of our business activities and getting to know each other in detail at all levels. We are aware that these are time-consuming processes but there is a strong desire on both sides to share knowledge and expertise, therefore we plan to mutually exchange and implement proven good practices.

Great knowledge and expertise are crucial for an organization to have capacity for change, and it is them that have led us to being ranked among few organizations in the world with 11 Microsoft advanced specializations, with two new ones acquired in the second quarter.

I want to highlight that our colleagues in Span Ukraine were declared the Microsoft Partner for 2022 in that country, which I am very glad about because it is at least a small wind at the back in these times, unpredictable for them (and for all of us).

Certainly, I want to emphasize that in this quarter we published our first Sustainability Report where we formalized the initiatives and endeavors we implement, upgrade and improve year by year. We know that it can always be better, we want better and therefore, we are glad that our every future sustainability report will serve us to devise ever more complex and focused plans in order to demonstrate that we do not fear change, to prove our courage in this segment as well.

The future is digital, and we want to help construct a digital road to a sustainable future. There is no other one in sight for now. In doing so, we do not fear change, we in Span are fully equipped for that journey.

Dragan Marković Member of the Management Board of Span d.d., Chief Operating Officer

1.2. Corporate Events

1.2.1. Incorporation of Fintech Digital Services LLC

On April 15th, 2022, the Commercial Court in Zagreb issued a decision on registration of the incorporation of a company FINTECH DIGITAL SERVICES Limited Liability Company for IT Services, PIN: 79372150838, based in Zagreb, Koturaška cesta 47 and share capital in the amount of HRK 20,000.00. The decision was published on April 16th, 2022. The founders of the company are Span d.d., IDENTITY CONSORTIUM d.o.o., and KARFIJAM d.o.o., where Span d.d. and IDENTITY CONSORTIUM d.o.o. have taken over business shares, each in the amount of 35% of the share capital, while KARFIJAM d.o.o. has taken over remaining business shares in the amount of 30% of the share capital.

1.2.2. Decision on the use of profits and payment of dividends

A meeting of the Supervisory Board of Span d.d. ("Company") was held on April 29th, 2022, during which the Supervisory Board, together with the Management Board, proposed to the General Assembly a decision on the use of profits and the payment of dividends in the amount of HRK 5 per share. The dividend was paid to the shareholders of the Company who were registered as shareholders of the Company on June 17th, 2022, in the depository of the Central Depository and Clearing Company d.d. (record date). The date from which the Company's shares were traded without the right to dividend payment was June 15th, 2022 (ex-date). The claim for dividend payment was due on July 1st, 2022 (payment date). The dividend was paid from the company's profit realized in 2021.

1.2.3. Release of own shares – Remuneration programme

Within the Share Buy-Back Programme for the purpose of offering Shares to employees of Span d.d. and its affiliated companies for the purpose of remuneration, adopted at the the Span d.d. Management Board meeting held on January 14th, 2022, Span d.d. on May 2nd, 2022, and June 7th, 2022, released 9,451 and 7,191 shares respectively. Before the said disposal, Span d.d. owned 33,887 of own shares, representing 1.7289% of the share capital1 . After the said disposals, it owns a total of 17,245 treasury shares, representing 0.8798% of the share capital.

1.2.4. General Assembly of Span d.d. – Invitation and Decisions

On May 3rd, 2022, Span d.d. (hereinafter referred to as "Company") announced an Invitation to the General Assembly. Pursuant to the provisions of the Capital Market Act and Stock Exchange Rules, a regular session of the General Assembly of the Company took place on June 13th, 2022, starting at 11:00 at the address: The Westin Hotel Zagreb, Panorama Meeting Room – 17th floor, Izidora Kršnjavoga 1, 10000 Zagreb, Croatia. Mr. Stjepan Lović, Attorney at Law, presided over the General Assembly, with 1,446,439 votes being present, which made 74.45% of the total number of shares with voting rights of the Company, or 73.80% of the share capital of the Company. According to the Agenda of the General Assembly of the Company announced in the Invitation to the General Assembly, the following decisions were adopted:

  • Ad 1. Election of the President of the General Assembly;
  • Ad 3. Decision on the use of profits for 2021;
  • Ad 4. Decision on giving discharge to members of the Management Board of the Company for the 2021 financial year;

1 Share capital of Span d.d. amounts to HRK 19,600,000.00 and is divided in 1,960,000 ordinary registered shares with a nominal value of HRK 10.00, under security code SPAN-R-A and ISIN code HRSPANRA0007.

  • Ad 5. Decision on giving discharge to members of the Supervisory Board of the Company for the 2021 financial year.
  • Ad 6. Decision on giving authorization to the Management Board of the Company for acquisition of the Company shares.
  • Ad 7. Decision on approval of the Remuneration Report for members of the Management Board and the Supervisory Board of the Company in the 2021 financial year.
  • Ad 8. Decision on giving consent for the Remuneration Policy of the Company
  • Ad 9. Decision on a remuneration for the members of the Supervisory Board of the Company
  • Ad 10. Decision on appointing the auditor of the Company and the Group for the 2022 financial year.

The whole contents of the decisions can be found at the following link: General Assembly of Span d.d.

1.2.5. Corporate Governance Code – Annual Compliance Questionnaire for 2021

Span shares were listed on the regulated Zagreb Stock Exchange market on 21 September, 2021, and Span applies the Corporate Governance Code of the Zagreb Stock Exchange and the Croatian Financial Services Supervisory Agency (HANFA), which is available online on the websites of the Zagreb Stock Exchange (www.zse.hr) and HANFA (www.hanfa.hr). By Statement on Application of the Corporate Governance Code2 Span acknowledges that it operates in line with the good corporate governance practice and mostly according to the recommendations in the Code, and publishes all information whose publishing is provided for in the positive regulations. Pursuant to the Rules on Data Concerning Corporate Governance that issuers are obliged to submit to the Croatian Financial Services Supervision Agency, and in the form, deadlines and manner for their submission (Official Gazette 59/2020), Span provided the Annual Compliance Questionnaire for Issuers of Shares to HANFA and released it on the websites of the Company and the Zagreb Stock Exchange.

1.3. People and the community

1.3.1. Human resources – intense employment and increased satisfaction

Strengthening the relationship with the academic and IT community

The first half of this year showed our intense activity towards cooperation and strengthening the relationship with the academic and IT community. Therefore, we actively continued to represent Span at Job Fair Meetup, RiTeh (Faculty of Engineering of the University of Rijeka), University Career Week in Osijek, Career Week at the Faculty of Organization and Informatics, Faculty of Science's Career Speed Dating and Lumen Competition. We also took part at the Dump Days Conference and at the largest developer conference in Croatia - .debug.

2 Published in the Annual Report for 2021, on p. 13:https://www.span.eu/en/media/annual-report-for-2021-span-group-and-span-d-d/

Moreover, we organized two student practices in Osijek and a 48 hours long Hackhaton in Zagreb, and continued our cooperation with the Algebra University College on their Work in Tech project intended for the education of women in IT.

The first half of this year was also marked with the promotion of our summer professional practice programme, Span Academy, and we also visited and toured as many as 14 faculties from Zagreb to Varaždin and Rijeka to Osijek and Bjelovar in order to appeal to as many students from all the regions in Croatia. Within all those activities, we also spared time for a charity football tournament – Kopačka solidarnosti, organized by the eSTUDENT Student Association, and we donated the donations collected together with our partners in the business and tech community to the Novi put Association for the Homeless in Varaždin.

Increase of general job satisfaction

In March this year, we conducted a survey of the organization climate in Span. Based on the obtained results, we can see that the general level of satisfaction with one's job in Span increased by 2.52% compared to 2021. The aspects where employees are most satisfied in 2022 are as follows: Leadership, Image of the organization, Personal work conditions, and Team climate. When we compare results to the ones in 2021, the highest increase is evident in the Remuneration system aspect, amounting to 2.85%.

The series of HR initiatives in the prior year included the ESOP Programme, Span Heroes, and Span Management Academy as crucial. To get a real picture of success of each of the said initiatives in the survey of the organization climate this year, we additionally analyzed the satisfaction of those who took part in them. Analyses of results showed that employees covered with the ESOP Programme, Span Heroes Award and/or Span Management Academy, are more satisfied in almost all aspects compared to other employees. By doing so, we have obtained an acknowledgement of the success of our HR initiatives in Span at the quantitative level as well.

Aspects of survey SMA Span Heroes ESOP
Organization Image 5.2% 1.94%
Personal working conditions 4.84% 1.09% 5.83%
Work organization 6.08% 0.19%
Job contents 4.74% 0.98% 0.92%
Personal influence 7.58% 0.6% 1.18%
Follow up and evaluation 5.31% 4.44% 0.79%
Remuneration system 4.99% 4.66% 0.78%
Management 4.47% 2.16%
Leadership 3.13% 0.83%
Climate – team 1,1% 0,7%
Climate – organization 2.04% 1.13%
Job satisfaction 4.84% 1.15% 2.2%

The difference in the satisfaction of employees who participate in initiatives compared to other employees

More intense employment and more successful retention of employees

A proactive approach to the labor market helped us in recruiting and employing a significantly higher number of employees during the first half of 2022 in relation to the same period of 2021. On the other hand, good HR initiatives contributed to a better retention of current employees despite very competitive conditions in IT. Thus, with the increase of the number of employees, as a result of the acquisition of Ekobit, we also achieved a strong organic growth that resulted in total of 168 employees more at the level of the Span Group compared to the first half of 2021.

1.3.2. Corporate social responsibility

Although our company has nurtured and cultivated sustainable business principles for many years, Span's first annual Sustainability Report covers all our achievements and initiatives from an environmental, social, and managing standpoint in one place. We believe that digital technologies are the key to a sustainable future, and our Sustainability Report shows everything we do to make that future come about as soon as possible.

Izvještaj o održivosti "Today, technology plays a crucial role in the economic growth and ensuring equality, inclusion, accountability and efficiency of all social actors. It is vital for unlocking the innovation opportunities needed to ensure sustainable community development and climate protection," says Nikola Dujmović, CEO and President of the Management Board of Span in the Introduction of the Sustainability Report.

Our main mission is to create IT solutions that improve the business operations of our customers. For us, this mission means more than just delivering intended solutions - it means creating added value that will help customers' business efficacy, security and the simplification of processes. It means optimized, user-friendly technology that will enable access to their services to a more significant number of users. In everything we do, we are guided by the intention of contributing to problem-solving, promoting easier use of technology, and influencing the responsible management of various aspects of our clients' businesses. Our worldview is inspired by those who want to use technology to improve the quality of life of as many people as possible.

Our guiding principle is to give back to the community more than we have taken from it.

"Just as the future of humanity is digital, so the development of technology must support and encourage the sustainable development of societies. At Span, we take our role in this process seriously. Although this is our first Sustainability report, responsible management practices and ideas that we must equally contribute to the development of society and environmental protection have been embedded in our work principles for a long time. By publishing this report, for the first time, we present our practices as a systematic effort in which we plan to make continued strides, and we will regularly report on

our progress. Responsibility, the keyword in "corporate social responsibility ", does not only describe the ethical standards by which we work. It is one of our core values and the way we approach everything we do. Responsible consideration of all aspects of our business operations, responsible behavior in stakeholder relations, and responsibility in supporting community development all define Span".

Within our focus areas, we monitor the needs of our significant stakeholders, devise projects and take part in already existing ones as partners in order to multiply positive social efficiency. We also invest resources and effort in environmental initiatives because we are aware that only green,

energy efficient Span protecting the environment can be Span of the present – and the future. Therefore, this year, we marked the Day of the Planet Earth in style – from the air, coupling the pleasant with the useful in the best possible way. We took part in foresting by drones, an action organized by the Project O2 aimed at protecting forests through socially encouraged planting of trees by means of advanced foresting systems and educational programmes and innovative products adapted to ama-

teur planting. We joined this unusual green initiative not only by donating. On the Day of the Planet Earth, a dozen of our colleagues arrived at the Grubišno polje to assist firsthand in drone foresting.

Children are the ones whom a great majority of our socially responsible business operations is directed to. Therefore, Span and RTL Hrvatska are providing aid again, this time to the Mirko Pereš Primary School in Kapela, in the Bjelovar-Bilogora County! This year, we have continued our successful cooperation with the "RTL pomaže djeci" association by financing equipment for the outdoor children's playground and PE equipment in this school. Play is a very important part of children's development because through it, they develop motor and cognitive abilities, it encourages their creativity, imagination and social skills, and with this newly equipped playground and equipment, students are now finally provided with a quality and safe place for playful socializing and growing up. In 2022, Span continued to support numerous STEM associations that work with children and youth and achieve excellent results – especially in robotics, informatics, and mathematics, whereas with younger generations we strive to encourage interest in these areas and related ones.

1.4.Awards, recognitions, partnerships

1.4.1. Microsoft Advanced Specializations

Microsoft Azure Virtual Desktop and Microsoft Modernize Endpoints are newly acquired advanced specializations3 . Microsoft Azure Virtual Desktop confirms our extensive knowledge, experience and expertise in implementing scalable and secure infrastructure for desktop virtualization on the Azure platform, and Microsoft Modernize Endpoints advanced specialization is focused on ensuring secure access to corporate resources for end users.

The latest specializations thus readily respond to challenges brought about by hybrid work in terms of management and secure access to corpo"The advanced specializations we have acquired so far are the crown of our work and are a proof of excellence, thanks to which we achieve greater recognition in the market and strengthen relationships with our clients. In addition, they allow us to be more recognizable within Microsoft, which evaluates and categorizes its partners within a wide partner network based on advanced specializations, " emphasizes Mihaela Trbojević, Product Marketing Director in Span.

3 https://www.span.eu/en/insights/by-acquiring-two-new-specialized-competencies-span-now-has-11-microsoft-advanced-specializations/

rate resources and supporting secure remote work, which is becoming imperative from an employee perspective. Conditions for acquiring these specializations are not simple; the certification process is demanding and long and implies preconditions that should be met in order to even join the process of acquisition of an advanced specialization. Supporting secure remote work for employees is more important than ever before, and Azure Virtual Desktop is Microsoft's flexible and scalable solution that supports remote desktop services with simplified management of the entire system. This saves time and resources and increases efficiency of employees so Azure Virtual Desktop indirectly opens new opportunities for accelerated growth of business operations.

1.4.2. Microsoft competences

We have 17 Microsoft Competences, all gold ones, and gold competences are the crucial precondition for the acquisition of Microsoft Advanced Specializations. With two newly acquired, we have a total of 11, ranking us among few Microsoft partners in the world with so many highly specialized

competences. While Microsoft competences confirm knowledge of Microsoft partners in the implementation of a particular technology or product, advanced specializations focus on a specific niche within the competence and demand detailed and in-depth knowledge of solutions and application of knowledge in a certain area.

1.4.3 . TOV Span from Ukraine receieved 2022 Microsoft Ukraine Partner of the Year Award*

TOV Span receieved 2022 Microsoft Ukraine Partner of the Year Award. The company was honored among a global field of top Microsoft partners for demonstrating excellence in innovation and implementation of customer solutions based on Microsoft technology.

*Span was recognized as the winner of 2022 Microsoft Ukraine Partner of the Year

  1. Financial indicators for the first halfyear of 2022

2.1. Operating revenue, EBITDA and net profit of Span Group

2.2. Operating revenue, EBITDA and net profit of Span d.d.

2.3. Key features of the period – first half-year of 2022

Profit and loss account - shortened

Span Group
In thousands of HRK H1 2021 H1 2022 ∆% Q2 2021 Q2 2022 ∆%
Total revenue 392.120 408.525 4% 257.676 222.669 -14%
Operating revenue 390.666 406.855 4% 256.700 221.780 -14%
Other revenue 1.454 1.670 15% 976 888 -9%
Total costs 376.745 375.787 - 254.273 210.069 -17%
Costs of goods and services sold 291.001 257.517 -12% 208.299 148.238 -29%
Personnel expenses 64.759 90.336 39% 33.950 47.155 39%
Other business expenses 20.985 27.935 33% 12.024 14.676 22%
EBITDA before one-off items 17.762 35.721 101% 5.493 12.600 129%
One-off items 2.387 2.983 - 2.090 - -
EBITDA after one-off items 15.375 32.738 113% 3.403 12.600 270%
Depreciation 7.238 8.482 17% 3.337 4.482 34%
EBIT 8.138 24.257 198% 66 8.118 12160%
Net financial result 967 3.176 228% 436 1.676 284%
One-off items of net financial result - 2.255 - - - -
Profit/loss before taxation before one-off items 11.492 28.161 145% 2.592 9.794 278%
Profit/loss before taxation after one-off items 9.105 27.433 201% 502 9.794 1849%
Corporate tax 1.687 2.941 74% 393 2.480 530%
Profit/loss after taxation before one-off items 9.805 25.220 157% 2.199 7.315 233%
Profit/loss after taxation after one-off items 7.418 24.492 230% 109 7.315 6614%
Span d.d.
In thousands of HRK H1 2021 H1 2022 ∆% Q2 2021 Q2 2022 ∆%
Total revenue 263.338 330.790 26% 157.424 183.494 17%
Operating revenue 262.011 329.832 26% 156.701 183.097 17%
Other revenue 1.327 958 -28% 723 397 -45%
Total costs 249.161 300.010 20% 154.458 174.621 13%
Costs of goods and services sold 182.587 211.089 16% 119.031 128.189 8%
Personnel expenses 51.647 67.080 30% 27.079 34.905 29%
Other business expenses 14.927 21.842 46% 8.349 11.527 38%
EBITDA before one-off items 16.564 31.156 88% 5.056 8.873 76%
One-off items 2.387 376 - 2.090 - -
EBITDA after one-off items 14.177 30.780 117% 2.966 8.873 199%
Depreciation 6.596 6.849 4% 3.299 3.533 7%
EBIT 7.581 23.930 216% (333) 5.340 1706%
Net financial result (316) 1.308 513% (889) 1.597 280%
One-off items of net financial result - - - - - -
Profit/loss before taxation before one-off items 9.652 25.615 165% 868 6.937 699%
Profit/loss before taxation after one-off items 7.265 25.239 247% (1.222) 6.937 668%
Corporate tax 1.174 593 -49% 150 297 97%
Profit/loss after taxation before one-off items 8.478 25.022 195% 718 6.640 825%
Profit/loss after taxation after one-off items 6.091 24.646 305% (1.372) 6.640 584%

REVENUES

Total consolidated revenues increased by HRK 16,405 thousand, or 4%, compared to the first half-year of the prior year. The revenue increase in the IT service segments with high added value covered the drop in the revenues in the Software Asset Management and Licensing segment that derives from the decline of revenues in the Ukrainian market. Actually, from April 1st to December 31st, 2022, Microsoft enabled all our customers in Ukraine to use its products and services without compensation.

The highest growth of revenues in the Group was achieved by the business segment Infrastructure Services, Cloud & Cyber Security which recorded a 67% growth.

In the first half-year of 2022, Span d.d. accomplished a growth of revenues by HRK 67,452 thousand, or 26%. The strongest growth of revenues was also recorded in the segment of the Infrastructure Services, Cloud & Cyber Security, amounting to 96%.

OPERATING EXPENSES

The total consolidated expenses of the operation decreased by HRK 958 thousand, or 0.3% compared to the first half-year of 2021 primarily due to lower expenses for goods and services (HRK 33,484 thousand), whereas the personnel expenses of the Group concurrently increased by HRK 25,576 thousand, and other operating expenses by HRK 6,950 thousand.

The lower expenses for goods and services resulted from 1) lower expenses for goods and services in the Ukrainian market (HRK 76,658 thousand) and 2) increase of direct expenses (HRK 43,175 thousand) caused by the growth of revenues of the rest of the Group.

Growth of personnel expenses of the Group in 2022, amounting to 39%, is the result of the higher number of employees and one-time expenses resulting from the allocation of shares to employees of Ekobit. The average number of employees in the Group in the observed period of 2022 is 651, compared to the prior year when the average number of employees in the Group was 524.

The total expenses of Span d.d. increased by HRK 50,849 thousand, or 20%. The highest growth results from direct expenses for goods and services in the amount of HRK 28,502 thousand.

Personnel expenses of Span d.d. increased by HRK 15,433 thousand, or 30%. The average number of employees in the company in the observed period was 501, compared to the prior year when the average number of employees in the company was 425. The majority of new employees are employed in segments with high added value, i.e. IT services from the business segments Software Asset Management, Infrastructure Services (Cloud & Cyber Security), Service Management and Support, and Software Development and Business Solutions.

Other operating expenses for the Span Group increased under the influence of the higher volume of operations and the higher volume of employees.

EBITDA

The significant growth of EBITDA follows the growth of revenues from IT services with high added value, which are described in more detail in the chapter Revenues by segments.

EBITDA of the Group before one-off items in the first half-year increased compared to the prior year by HRK 17,959 thousand, or 101% and amounted to HRK 35,721 thousand.

The one-off items of EBITDA of the Group amounted to HRK 2,983 thousand and relate to 1) expenses arising from the Plan for the allocation of shares to employees of Ekobit defined in the purchase and sale contract and 2) operating expenses arising from the acquisition, which mainly relate to the costs of consultants.

EBITDA of the Group after one-off items in the observed period increased by HRK 17,363 tho-

usand, to HRK 32,738 thousand, an increase of 113%.

Span d.d. recorded an increase of EBITDA before one-off items in the amount of HRK 14,593 thousand, or 88%, and it amounted to HRK 31,156 thousand.

In the first half-year of 2022, Span d.d. recorded a growth of EBITDA after one-off items in the amount of HRK 16,603 thousand to HRK 30,780 thousand, an increase of 117%.

NET PROFIT

Profit after tax before one-off items of the Group increased by HRK 15,415 thousand, to HRK 25,220 thousand.

One-off items of the net financial result of the Group amounted to HRK 2,255 thousand and relate to the acquisition of Ekobit. Financial revenues occurred as a positive difference in the price of Ekobit's own shares, i.e. difference in the price by which Span bought them and those by which Ekobit acquired them in 2017.

In the observed period, profit after tax after one-off items of the Group increased by HRK 17,074 thousand, to HRK 24,492 thousand.

Span d.d. recorded a growth of profit after tax before one-off items by HRK 16,545 thousand, to HRK 25,022 thousand.

Span d.d. recorded a growth of profit after tax after one-off items by HRK 18,555 thousand, to HRK 24,646 thousand.

2.4. Revenues by segments

Span Group generates revenues in the following segments:

    1. Software Asset Management and Licensing
    1. Infrastructure Services, Cloud & Cyber Security
    1. Service Center Management and Technical Support
    1. Software and Business Solution Development

Data on revenues from sales by business segments of the Group and Span d.d. for the observed period in 2021 and 2022 is presented below.

Revenues by segments

Span Group
In thousands of HRK H1 2021 H1 2022 ∆% Q2 2021 Q2 2022 ∆%
Total operating revenue 390.666 406.855 4% 256.700 221.780 -14%
Software Asset Management and Licensing 290.243 257.674 -11% 208.552 150.498 -28%
Infrastructure Services, Cloud & Cyber Security 37.679 62.824 67% 15.707 23.896 52%
Service Center Management and Technical Support 43.986 57.810 31% 21.411 30.522 43%
Software and Business Solution Development 18.757 28.548 52% 11.029 16.864 53%
Span d.d.
In thousands of HRK H1 2021 H1 2022 ∆% Q2 2021 Q2 2022 ∆%
Total operating revenue 262.011 329.832 26% 156.701 183.097 17%
Software Asset Management and Licensing 178.739 204.906 15% 116.897 126.940 9%
Infrastructure Services, Cloud & Cyber Security 28.259 55.452 96% 11.114 20.333 83%
Service Center Management and Technical Support 42.856 55.291 29% 20.926 28.808 38%
Software and Business Solution Development 12.157 14.183 17% 7.764 7.016 -10%

Segment revenue contribution

  1. Software Asset Management and Licensing recorded a decline in the Ukrainian market, which led to the overall decline in revenues of the Group in this segment. This segment accounted for 63% in the total operating revenues, an additional decline compared to the prior year that is also due to a stronger growth in other segments.

2. Infrastructure Services, Cloud & Cyber Security had most significant growth in the structure of the operating revenues, 67% compared to the same period of 2021. Expansion of business activities in the area of Cloud and Security solutions is in line with the growth strategy of the Group, contributed by an increase of the number of projects with the current and new customers. In the first half-year, along with Span d.d., Span Slovenia and Span United States also contributed to the growth of revenues.

3. Service Center Management and Support contributes to a continuing growth of revenues by providing services of monitoring and managing the IT environment, and the increase of revenues of this segment in the first half-year amounts to 31%.

4. Software and Business Solution Development made significant growth amounting to 52% in the observed period. The growth of this segment arose from the focused development of proprietary IT solutions and platforms, and development of specific business solutions for individual key users, such as CRM, automation and robotization of their business processes. The growth of this segment was additionally strengthened by the acquisition of Ekobit, whose operation is focused on the development of software solutions.

2.5. Revenues by geography

Revenues by geography show the geographic market to which goods or services were invoiced. The share in revenues the Group made on foreign markets amounted to 74% of the total revenues.

In the first half-year most revenues of the Group were invoiced on the Croatian market, whereas the most significant growth was recorded by the United States as a result of development of operati-

ons and major infrastructure projects in that market (HRK 38,261 thousand growth). The growth of revenues in the Croatian market amounted to HRK 24,661 thousand.

30% of the revenues of Span d.d. in the observed period related to the Croatian market, which also recorded the highest growth in the observed period, amounting to HRK 22,222 thousand (29%), followed by the growth of revenues on the United States (HRK 35,707 thousand) and the UK (HRK 2,105 thousand) market.

Revenues by geographic markets

2.6. Balance sheet

Span Group
In thousands of HRK 31.12.2021 30.6.2202 31.12.2021 30.6.2022
ASSETS 351.568 453.313 317.904 388.561
Fixed assets 87.381 122.398 99.738 129.980
Deferred tax assets 7.729 7.143 6.952 6.393
Current assets 87.877 176.609 60.499 138.262
Cash and cash equivalents 139.791 127.766 126.920 103.355
Prepaid expenses and accrued income 28.789 19.397 23.795 10.570
LIABILITIES 351.568 453.313 317.904 388.561
Equity and reserves 193.743 209.299 192.917 199.967
Long-term liabilities 31.430 30.379 29.149 27.047
Current liabilities 106.516 189.717 79.710 144.952
Accrued expenses and deferred revenue 19.878 23.918 16.128 16.595

ASSETS

The total value of assets of the Group was higher by HRK 101,745 thousand amid the increase of short-term assets and long-term intangible assets.

The increase of the short-term assets, i.e. increase of the short-term receivables resulted from the growth of the Group in the first half-year of 2022.

The increase of the fixed intangible assets relates to the initial entry of goodwill of Ekobit amounting to HRK 27,898 thousand. In accordance with the requirements of IFRS 3 Business combinations, within this transaction, within 1 year, Span is obliged to implement the allocation of the purchase price for Ekobit and in doing so, adjust the initially recognized goodwill. For this reason, this item is subject to change during the future period.

CASH AND CASH EQUIVALENTS

The majority of the short-term assets of the Group consists of cash in the amount of HRK 127,766 thousand. The decrease in cash in relation to the prior period results from investment and financial activities of the Group.

Span Group Span d.d.
In thousands of HRK H1 2021 H1 2022 Q2 2021 Q2 2022 H1 2021 H1 2022 Q2 2021 Q2 2022
Computer equipment
and other equipment
1.768 2.726 1.020 1.634 1.469 2.314 918 1.514
Development expenses - - - - - - - -
Other intangible assets 4 2.090 4 2.090 - 2.088 - 2.088
Intangible assets in
preparation
- 1.848 - 961 - 1.567 - 754
Investment in assets
total
1.772 6.664 1.024 4.685 1.469 5.969 918 4.356

INVESTMENT IN ASSETS

Investments in assets of the Span Group relate to expenses for the procurement and replacement of obsolete computer and other equipment required for the work of employees. Investment in intangible assets under preparation relates to internally generated intangible assets that are derived from continuation of software development available for further sale/use. Other intangible assets relate to software intended for further sale/use.

DEFERRED TAX ASSETS

Deferred tax assets present amounts of income tax that are recoverable based on future deductions of taxable profit. Deferred tax assets are recognized up to the amount of the tax revenues likely be achieved. When determining future taxable profits and amounts of tax revenues that will likely be achieved in the future, the Group makes assessments and estimates based on the taxable profits from previous years and expectations for future revenues which are considered to be reasoned in the existing circumstances. The Group has made an assessment of the usability of tax relief for the estimate of the amount of deferred tax assets, based on the support gained from the Ministry of Economy, Entrepreneurship and Crafts. The said support enables Span d.d. to be exempt from payment of the income tax from 2015 to 2025, to the amount of 50% of the tax base, to the maximum limit in the amount of the total investment according to the Investment Promotion Act.

In December 2021, Span d.d. and Bonsai d.o.o. applied for the use of a new round of support entitled R&D Capacity for Delivery of IT Solutions Investment and Expansion Project. On February 25th, 2022, they received a positive decision based on which they received an additional 50% relief of the tax rate, which Span used as early as for 2021. By this, Span has ensured an income tax rate of 0% by 2025, i.e. by the utilization of the maximum limit of the investment.

EQUITY AND RESERVES

The total equity and reserves of the Group increased by HRK 15,556 thousand as a result of the growth of profits for the current period (HRK 24,492 thousand), reduced retained profits due to the payment of dividend (HRK 9,714 thousand), and increase of capital reserves arising from the acquisition of Ekobit.

LIABILITIES

Total long-term liabilities were reduced by HRK 1,051 thousand, in most part due to the transfer of long-term contracted liabilities to short-term (liability for the purchase of own shares from former owners in line with the repayment plan).

On June 30th, 2022, they consist of liabilities for the purchase of the business share of Ekobit d.o.o. (HRK 3,600 thousand), and the long-term part of liabilities to former owners (HRK 5,134 thousand).

Short-term liabilities increased primarily as a result of 1) increase of liabilities to suppliers, and 2) short-term liabilities for the purchase of a business share in Ekobit, in the amount of HRK 6,105 thousand, which are due on September 14th, 2022.

Current Assets, Current Liabilities and Working Capital
Span Group
In thousands of HRK 31.12.2021 30.6.2202 31.12.2021 30.6.2202
Current assets 256.457 323.772 211.214 252.188
Current liabilities 126.395 213.635 95.838 161.547
Working capital 130.063 110.137 115.376 90.641
Current liquidity ratio 2,03 1,52 2,20 1,56

The coefficient of the current liquidity still points to a strong ability of the Group to settle its short-term liabilities, though it is lower compared to the prior period as a result of the acquisition of Ekobit and the payment of dividend.

Net debt Span Group Span d.d.
In thousands of HRK 31.12.2021 30.6.2202. 31.12.2021. 30.6.2202
Short-term and long-term bank loans 15.977 12.080 14.108 10.504
Cash and cash equivalents 139.791 127.766 126.920 103.355
Net debt (123.814) (115.686) (112.812) (92.852)
Total equity 193.743 209.299 192.917 199.967
Net debt and total equity ratio - - - -

Negative net debt is an indicator of the financial liquidity of the Group.

2.7. Cash flow

Span Group
In thousands of HRK H1 2021 H1 2022 Q2 2021 Q2 2022 H1 2021 H1 2022 Q2 2021 Q2 2022
Net cash from operating
activities
20.696 51.385 4.188 36.404 22.321 40.519 10.028 31.340
Net cash used in investment
activities
-1.712 -40.805 -981 -4.630 -1.379 -43.308 -840 -4.322
Net cash used in financial
activities
-22.821 -22.606 -4.339 -16.001 -22.760 -20.775 -5.543 -15.485
Net increase / decrease in
cash and cash equivalents
-3.837 -12.025 -1.132 15.774 -1.818 -23.564 3.646 11.533

The Group and Span d.d. achieve positive cash flows from business activities. Increasing cash from business activities primarily arises from the expansion of the operation in the first half-year of 2022.

The negative cash flow from the financial activities is the result of the acquisition of Ekobit and investment in tangible and intangible assets.

The negative cash flow from the financial activities arises from outflows of cash for the settlement of liabilities to banks and purchase of treasury shares. Furthermore, a dividend in the amount of HRK 9,714 thousand was paid in the second quarter of 2022.

2.8. Operation of TOV Span Ukraine

The purpose of this segment is to provide investors with an insight into our operation in Ukraine, as well as its influence on the Span Group. To that end, we are enclosing the individual Statement of Profit and Loss for TOV Span for the first half-year of 2021 and 2022 and its contribution in the consolidated revenues of the Span Group.

Revenues of TOV Span in the first half-year of 2022 decreased significantly compared to the same period of the prior year given that for the period from April 1st to December 31st, 2022, Microsoft enabled all our customers in Ukraine to use its products and services without compensation. Decline of direct expenses follows a decline in revenues, whereas operative expenses were reduced amid the decrease of business activities. The negative net financial result is a direct consequence of the depreciation of the Ukrainian currency (UAH). The corporate tax expressed in the result is a result of approvals issued by Microsoft, which created a tax liability in line with the Ukrainian tax legislation.

Revenues of TOV Span account for 6% of consolidated revenues of the Span Group in the first half-year of 2022.

In the first half-year of 2022, the contribution in consolidated EBITDA is negative (HRK -1,372 thousand) and the share in the Group EBITDA amounts to -4%.

Total investment of Span d.d. in TOV Span on June 30th, 2022, amounts to HRK 4,664 thousand.

TOV Span standalone
In thousands of HRK H1 2021 H1 2022 ∆% Q2 2021 Q2 2022 ∆%
Total revenue 102.698 26.179 -75% 85.987 4.735 -94%
Operating revenue 102.698 26.177 -75% 85.987 4.733 -94%
Other revenue - 2 - - 2 -
Total costs 104.359 27.089 -74% 86.576 4.726 -95%
Costs of goods and services sold 99.880 23.221 -77% 84.328 2.919 -97%
Personnel expenses 3.406 3.172 -7% 1.728 1.519 -12%
Other business expenses 1.073 695 -35% 520 288 -45%
EBITDA (1.661) (909) 45% (589) 9 102%
Depreciation 39 20 -47% 16 10 -37%
EBIT (1.700) (930) 45% (605) (1) 100%
Net financial result 1.385 (425) -131% 1.345 43 -97%
Profit/loss before taxation (316) (1.355) -329% 740 41 -94%
Corporate tax - 1.882 - - 1.882 -
Profit/loss after taxation (316) (3.238) -926% 740 (1.841) -349%
Span Group Contribution of TOV Span
in Span Group
Share of TOV Span in
Span Group
In thousands of HRK H1 2021 H1 2022 H1 2021 H1 2022 H1 2021 H1 2022
Total revenue 392.120 408.525 102.537 25.715 26% 6%
Operating revenue 390.666 406.855 102.537 25.712 26% 6%
Other revenue 1.454 1.670 - 2 - -
Total costs 376.745 375.787 104.338 27.087 28% 7%
Costs of goods and services sold 291.001 257.517 99.880 23.221 34% 9%
Personnel expenses 64.759 90.336 3.406 3.172 5% 4%
Other business expenses 20.985 27.935 1.052 693 5% 2%
EBITDA before one-off items 17.762 35.721 (1.801) (1.372) -10% -4%
One-off items 2.387 2.983 - - - -
EBITDA after one-off items 15.375 32.738 (1.801) (1.372) -12% -4%
Depreciation 7.238 8.482 39 20 1% -
EBIT 8.138 24.257 (1.840) (1.393) -23% -6%
Net financial result 967 3.176 1.385 (426) 143% -13%
One-off items of net financial result - 2.255 - - - -
Profit/loss before taxation before
one-off items
11.492 28.161 (455) (1.819) -4% -6%
Profit/loss before taxation after
one-off items
9.105 27.433 (455) (1.819) -5% -7%
Corporate tax 1.687 2.941 - 1.882 - 64%
Profit/loss after taxation before
one-off items
9.805 25.220 (455) (3.701) -5% -15%
Profit/loss after taxation after
one-off items
7.418 24.492 (455) (3.701) -6% -15%

3. Financial Statements of Span Group and Span d.d.

Span Group

STATEMENT OF PROFIT OR LOSS
for the period 1.1.2022 to 30.6.2022
in HRK
Submitter: Span d.d.
Item AOP
code
Same period of the previous year Current period
1 2 Cumulative
3
Quarter
4
Cumulative
5
Quarter
6
I OPERATING INCOME (ADP 002 to 006) 001 392.120.381 257.676.139 408.525.148 222.668.642
1 Income from sales with undertakings within the group 002 0 0 0 0
2 Income from sales (outside group) 003 390.666.273 256.699.896 406.854.914 221.780.147
3 Income from the use of own products, goods and services 004 0 0 0 0
4 Other operating income with undertakings within the group 005 0 0 0 0
5 Other operating income (outside the group) 006 1.454.108 976.243 1.670.234 888.495
II OPERATING EXPENSES (ADP 08+009+013+017+018+019+022+029) 007 383.982.813 257.609.921 384.268.630 214.550.220
1 Changes in inventories of work in progress and finished goods 008 0 0 0 0
2 Material costs (ADP 010 to 012) 009 307.348.582 217.882.298 278.777.964 160.159.865
a) Costs of raw materials and consumables 010 1.309.557 285.875 2.586.478 1.294.000
b) Costs of goods sold 011 270.669.688 196.829.312 239.844.514 140.050.138
c) Other external costs 012 35.369.337 20.767.111 36.346.972 18.815.727
3 Staff costs (ADP 014 to 016) 013 64.759.488 33.949.954 90.335.590 47.154.599
a) Net salaries and wages 014 40.315.162 20.805.493 60.255.297 31.287.488
b) Tax and contributions from salary costs 015 18.272.385 10.006.547 22.357.870 11.760.858
c) Contributions on salaries 016 6.171.941 3.137.914 7.722.423 4.106.253
4 Depreciation 017 7.185.786 3.285.198 8.481.717 4.481.569
5 Other costs 018 4.637.030 2.442.030 6.660.733 2.750.580
6 Value adjustments (ADP 020+021) 019 51.927 50.441 12.626 3.607
a) fixed assets other than financial assets 020 0 0 0 0
b) current assets other than financial assets 021 51.927 50.441 12.626 3.607
7 Provisions (ADP 023 to 028) 022 0 0 0 0
a) Provisions for pensions, termination benefits and similar obligations 023 0 0 0 0
b) Provisions for tax liabilities 024 0 0 0 0
c) Provisions for ongoing legal cases 025 0 0 0 0
d) Provisions for renewal of natural resources 026 0 0 0 0
e) Provisions for warranty obligations 027 0 0 0 0
f) Other provisions 028 0 0 0 0
8 Other operating expenses 029 0 0 0 0
III FINANCIAL INCOME (ADP 031 to 040) 030 3.837.339 2.160.424 5.539.031 2.486.268
1 Income from investments in holdings (shares) of undertakings within the group 031 0 0 0 0
2 Income from investments in holdings (shares) of companies linked by virtue of
participating interests
032 0 0 0 0
3 Income from other long-term financial investment and loans granted to undertakings
within the group
033 0 0 0 0
4 Other interest income from operations with undertakings within the group 034 0 0 0 0
5 Exchange rate differences and other financial income from operations with
undertakings within the group
035 0 0 0 0
6 Income from other long-term financial investments and loans 036 0 0 0 0
7 Other interest income 037 356.822 336.257 172.800 147.520
8 Exchange rate differences and other financial income 038 3.480.517 1.824.167 3.111.401 2.338.748
9 Unrealised gains (income) from financial assets 039 0 0 0 0
10 Other financial income 040 0 0 2.254.830 0
IV FINANCIAL EXPENSES (ADP 042 to 048) 041 2.870.123 1.724.234 2.362.705 810.310
1 Interest expenses and similar expenses with undertakings within the group 042 0 0 0 0
2 Exchange rate differences and other expenses from operations with undertakings
within the group
043 0 0 0 0
3 Interest expenses and similar expenses 044 875.675 377.463 533.502 278.643
4 Exchange rate differences and other expenses 045 1.955.133 1.307.456 1.829.203 531.667
5 Unrealised losses (expenses) from financial assets 046 0 0 0 0
6 Value adjustments of financial assets (net) 047 0 0 0 0
7 Other financial expenses 048 39.315 39.315 0 0
V SHARE IN PROFIT FROM UNDERTAKINGS LINKED BY VRITUE OF PARTICIPATING
INTERESTS
049 0 0 0 0
UNAUDITED FINANCIAL STATEMENTS OF SPAN GROUP AND SPAN D.D. / JANUARY − JUNE 2022

VI SHARE IN PROFIT FROM JOINT VENTURES 050 0 0 0 0 VII SHARE IN LOSS OF COMPANIES LINKED BY VIRTUE OF PARTICIPATING INTEREST 051 0 0 0 0 VIII SHARE IN LOSS OF JOINT VENTURES 052 0 0 0 0 IX TOTAL INCOME (ADP 001+030+049 +050) 053 395.957.720 259.836.563 414.064.179 225.154.910 X TOTAL EXPENDITURE (ADP 007+041+051 + 052) 054 386.852.936 259.334.155 386.631.335 215.360.530 XI PRE-TAX PROFIT OR LOSS (ADP 053-054) 055 9.104.784 502.408 27.432.844 9.794.380

1 Pre-tax profit (ADP 053-054) 056 9.104.784 502.408 27.432.844 9.794.380
2 Pre-tax loss (ADP 054-053) 057 0 0 0 0
XII INCOME TAX 058 1.686.830 393.288 2.941.311 2.479.710
XIII PROFIT OR LOSS FOR THE PERIOD (ADP 055-059) 059 7.417.954 109.120 24.491.533 7.314.670
1 Profit for the period (ADP 055-059) 060 7.417.954 109.120 24.491.533 7.314.670
2 Loss for the period (ADP 059-055) 061 0 0 0 0
DISCONTINUED OPERATIONS (to be filled in by undertakings subject to IFRS only with discontinued operations)
XIV PRE-TAX PROFIT OR LOSS OF DISCONTINUED OPERATIONS (ADP 063-064) 062 0 0 0 0
1 Pre-tax profit from discontinued operations 063 0 0 0 0
2 Pre-tax loss on discontinued operations 064 0 0 0 0
XV INCOME TAX OF DISCONTINUED OPERATIONS 065 0 0 0 0
1 Discontinued operations profit for the period (ADP 062-065) 066 0 0 0 0
2 Discontinued operations loss for the period (ADP 065-062) 067 0 0 0 0
TOTAL OPERATIONS (to be filled in only by undertakings subject to IFRS with discontinued operations)
XVI PRE-TAX PROFIT OR LOSS (ADP 055-+062) 068 0 0 0 0
1 Pre-tax profit (ADP 068) 069 0 0 0 0
2 Pre-tax loss (ADP 068) 070 0 0 0 0
XVII INCOME TAX (ADP 058+065) 071 0 0 0 0
XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 068-071) 072 0 0 0 0
1 Profit for the period (ADP 068-071) 073 0 0 0 0
2 Loss for the period (ADP 071-068) 074 0 0 0 0
APPENDIX to the P&L (to be filled in by undertakings that draw up consolidated annual financial statements)
XIX PROFIT OR LOSS FOR THE PERIOD (ADP 076+077) 075 7.417.954 109.120 24.491.533 7.314.670
1 Attributable to owners of the parent 076 7.902.050 389.051 25.086.635 7.623.001
2 Attributable to minority (non-controlling) interest 077 -484.096 -279.931 -595.102 -308.331
STATEMENT OF OTHER COMPRHENSIVE INCOME (to be filled in by undertakings subject to IFRS)
I PROFIT OR LOSS FOR THE PERIOD 078 7.417.954 109.120 24.491.533 7.314.670
II OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX (ADP 80+ 87) 079 884.038 303.120 448.621 70.250
III Items that will not be reclassified to profit or loss (ADP 081 to 085) 080 0 0 0 0
1 Changes in revaluation reserves of fixed tangible and intangible assets 081 0 0 0 0
2 Gains or losses from subsequent measurement of equity instruments at fair value
through other comprehensive income
082 0 0 0 0
3 Fair value changes of financial liabilities at fair value through statement of profit or
loss, attributable to changes in their credit risk
083 0 0 0 0
4 Actuarial gains/losses on the defined benefit obligation 084 0 0 0 0
5 Other items that will not be reclassified 085 0 0 0 0
6 Income tax relating to items that will not be reclassified 086 0 0 0 0
IV Items that may be reclassified to profit or loss (ADP 088 to 095) 087 884.038 303.120 448.621 70.250
1 Exchange rate differences from translation of foreign operations 088 884.038 303.120 448.621 70.250
2 Gains or losses from subsequent measurement of debt securities at fair value through
other comprehensive income
089 0 0 0 0
3 Profit or loss arising from effective cash flow hedging 090 0 0 0 0
4 Profit or loss arising from effective hedge of a net investment in a foreign operation 091 0 0 0 0
5 Share in other comprehensive income/loss of companies linked by virtue of
participating interests
092 0 0 0 0
6 Changes in fair value of the time value of option 093 0 0 0 0
7 Changes in fair value of forward elements of forward contracts 094 0 0 0 0
8 Other items that may be reclassified to profit or loss 095 0 0 0 0
8 Other items that may be reclassified to profit or loss 095 0 0 0 0
9 Income tax relating to items that may be reclassified to profit or loss 096 0 0 0 0
V NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 080+087- 086 - 096) 097 884.038 303.120 448.621 70.250
VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 078+097) 098 8.301.992 412.240 24.940.154 7.384.920
APPENDIX to the Statement on comprehensive income (to be filled in by undertakings that draw up consolidated statements)
VII COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 100+101) 099 8.301.992 412.240 24.940.154 7.384.920
1 Attributable to owners of the parent 100 8.786.088 132.309 25.535.256 7.693.251
2 Attributable to minority (non-controlling) interest 101 -484.096 279.931 -595.102 -308.331

Span Group

BALANCE SHEET
balance as at 30.6.2022
in HRK
Submitter: Span d.d.
Item ADP Last day of the preceding At the reporting date of the
code business year current period
1 2
001
3
0
4
0
A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID
B) FIXED ASSETS (ADP 003+010+020+031+036) 002 95.110.461 129.540.992
I INTANGIBLE ASSETS (ADP 004 to 009) 003 28.079.421 59.388.252
1 Research and development 004 7.542.547 7.064.933
2 Concessions, patents, licences, trademarks, software and other rights 005 646.079 2.524.340
3 Goodwill 006 19.465.802 47.366.644
4 Advances for the purchase of intangible assets 007 0 0
5 Intangible assets in preparation 008 424.993 2.432.335
6 Other intangible assets 009 0 0
II TANGIBLE ASSETS (ADP 011 to 019) 010 58.431.229 61.113.297
1 Land 011 13.049.681 13.049.681
2 Buildings 012 32.403.011 34.546.596
3 Plant and equipment 013 3.257.601 4.396.127
4 Tools, working inventory and transportation assets 014 9.720.936 9.120.893
5 Biological assets 015 0 0
6 Advances for the purchase of tangible assets 016 0 0
7 Tangible assets in preparation 017 0 0
8 Other tangible assets 018 0 0
9 Investment property 019 0 0
III FIXED FINANCIAL ASSETS (ADP 021 to 030) 020 866.405 1.892.565
1 Investments in holdings (shares) of undertakings within the group 021 0 0
2 Investments in other securities of undertakings within the group 022 0 0
3 Loans, deposits, etc. to undertakings within the group 023 0 0
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 025 0 0
6 Loans, deposits etc. to companies linked by virtue of participating interests 026 0 0
027 0 0
7 Investments in securities
8 Loans, deposits, etc. given 028 317.647 589.798
9 Other investments accounted for using the equity method 029 0 7.000
10 Other fixed financial assets 030 548.758 1.295.767
IV RECEIVABLES (ADP 032 to 035) 031 4.285 3.834
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 4.285 3.834
V DEFERRED TAX ASSETS 036 7.729.121 7.143.044
C) CURRENT ASSETS (ADP 038+046+053+063) 037 227.668.058 304.375.137
I INVENTORIES (ADP 039 to 045) 038 2.026.428 4.647.658
1 Raw materials and consumables 039 0 0
2 Work in progress 040 0 0
3 Finished goods 041 0 0
4 Merchandise 042 2.026.428 4.647.658
5 Advances for inventories 043 0 0
6 Fixed assets held for sale 044 0 0
7 Biological assets 045 0 0
II RECEIVABLES (ADP 047 to 052) 046 84.970.998 166.642.700
1 Receivables from undertakings within the group 047 0 0
2 Receivables from companies linked by virtue of participating interests 048 0 0
3 Customer receivables 049 80.397.002 159.859.947
4 Receivables from employees and members of the undertaking 050 0 0
5 Receivables from government and other institutions 051 2.417.303 1.252.382
6 Other receivables 052 2.156.693 5.530.371
III CURRENT FINANCIAL ASSETS (ADP 054 to 062) 053 879.404 5.318.988
1 Investments in holdings (shares) of undertakings within the group 054 0 0
2 Investments in other securities of undertakings within the group 055 0 0
3 Loans, deposits, etc. to undertakings within the group 056 0 0
4 Investments in holdings (shares) of companies linked by virtue of participating interests 057 0 0
058 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 interests 059 0 1.000.000
7 Investments in securities 060 0 1.479.552

8 Loans, deposits, etc. given 061 879.404 2.839.436 9 Other financial assets 062 0 0 IV CASH AT BANK AND IN HAND 063 139.791.228 127.765.791 D ) PREPAID EXPENSES AND ACCRUED INCOME 064 28.789.407 19.396.955

E) TOTAL ASSETS (ADP 001+002+037+064) 065 351.567.926 453.313.084
OFF-BALANCE SHEET ITEMS 066 0 0
LIABILITIES
A) CAPITAL AND RESERVES (ADP 068 to 070+076+077+081+084+087) 067 193.742.853 209.298.993
I INITIAL (SUBSCRIBED) CAPITAL 068 19.600.000 19.600.000
II CAPITAL RESERVES 069 79.083.569 81.258.747
III RESERVES FROM PROFIT (ADP 071+072-073+074+075) 070 8.252.425 8.252.425
1 Legal reserves 071 8.252.425 8.252.425
2 Reserves for treasury shares 072 1.015.559 7.173.449
3 Treasury shares and holdings (deductible item) 073 -1.015.559 -7.173.449
4 Statutory reserves 074 0 0
5 Other reserves 075 0 0
IV REVALUATION RESERVES 076 15.954.404 15.954.404
V FAIR VALUE RESERVES AND OTHER (ADP 078 to 082) 077 267.330 715.951
1 Financial assets at fair value through other comprehensive income (i.e. 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
4 Other fair value reserves 081 0 0
5 Exchange differences arising from the translation of foreign operations (consolidation) 082 267.330 715.951
VI RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 084-085) 083 45.713.436 57.931.711
1 Retained profit 084 45.713.436 57.931.711
2 Loss brought forward 085 0 0
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 087-088) 086 23.718.783 25.086.635
1 Profit for the business year 087 23.718.783 25.086.635
2 Loss for the business year 088 0 0
VIII MINORITY (NON-CONTROLLING) INTEREST 089 1.152.906 499.120
B) PROVISIONS (ADP 091 to 096) 090 0 0
1 Provisions for pensions, termination benefits and similar obligations 091 0 0
2 Provisions for tax liabilities 092 0 0
3 Provisions for ongoing legal cases 093 0 0
4 Provisions for renewal of natural resources 094 0 0
5 Provisions for warranty obligations 095 0 0
6 Other provisions 096 0 0
C) LONG-TERM LIABILITIES (ADP 098 to 108) 097 31.430.203 30.379.409
1 Liabilities to undertakings within the group 098 0 0
2 Liabilities for loans, deposits, etc. of undertakings within the group 099 0 0
3 Liabilities to companies linked by virtue of participating interests 100 0 0
4 Liabilities for loans, deposits etc. of companies linked by virtue of participating interests 101 0 0
5 Liabilities for loans, deposits etc. 102 0 0
6 Liabilities to banks and other financial institutions 103 6.895.152 6.905.201
7 Liabilities for advance payments 104 0 0
8 Liabilities to suppliers 105 0 0
9 Liabilities for securities 106 0 0
10 Other long-term liabilities 107 21.032.865 19.972.022
11 Deferred tax liability 108 3.502.186 3.502.186
D) SHORT-TERM LIABILITIES (ADP 110 to 123) 109 106.516.400 189.716.878
1 Liabilities to undertakings within the group 110 0 0
2 Liabilities for loans, deposits, etc. of undertakings within the group 111 0 0
3 Liabilities to companies linked by virtue of participating interests 112 0 0
4 Liabilities for loans, deposits etc. of companies linked by virtue of participating interests 113 0 0
5 Liabilities for loans, deposits etc. 114 0 0
6 Liabilities to banks and other financial institutions 115 9.082.059 5.174.344
7 Liabilities for advance payments 116 3.153.753 3.513.535
8 Liabilities to suppliers 117 53.513.063 106.056.821
9 Liabilities for securities 118 0 0
10 Liabilities to employees 119 8.838.574 9.053.297
11 Taxes, contributions and similar liabilities 120 11.595.560 18.612.258
12 Liabilities arising from the share in the result 121 0 0
13 Liabilities arising from fixed assets held for sale 122 0 0

14 Other short-term liabilities 123 20.333.391 47.306.623 E) ACCRUALS AND DEFERRED INCOME 124 19.878.470 23.917.804 F) TOTAL – LIABILITIES (ADP 067+090+097+109+124) 125 351.567.926 453.313.084 G) OFF-BALANCE SHEET ITEMS 126 0 0

Span Group

STATEMENT OF CASH FLOWS - indirect method
for the period 1.1.2022 to 30.6.2022
in HRK
Submitter: Span d.d.
Item ADP
code
Same period of the
previous year
Current period
1 2 3 4
Cash flow from operating activities
1 Pre-tax profit 001 9.104.784 27.432.844
2 Adjustments (ADP 003 to 010): 002 8.868.050 9.708.261
a) Depreciation 003 7.185.786 8.481.717
b) Gains and losses from sale and value adjustment of fixed tangible and intangible assets 004 -32.789 -31.072
c) Gains and losses from sale and unrealised gains and losses and value adjustment of financial assets 005 0 12.626
d) Interest and dividend income 006 -356.822 -172.800
e) Interest expenses 007 875.675 533.502
f) Provisions 008 0 0
g) Exchange rate differences (unrealised) 009 909.492 495.843
h) Other adjustments for non-cash transactions and unrealised gains and losses 010 286.708 388.445
I Cash flow increase or decrease before changes in working capital (ADP 001+002) 011 17.972.834 37.141.105
3 Changes in the working capital (ADP 013 to 016) 012 4.546.021 15.332.608
a) Increase or decrease in short-term liabilities 013 41.861.461 81.560.818
b) Increase or decrease in short-term receivables 014 -31.338.359 -76.843.766
c) Increase or decrease in inventories 015 -7.412.845 -2.621.230
d) Other increase or decrease in working capital 016 1.435.764 13.236.786
II Cash from operations (ADP 011+012) 017 22.518.855 52.473.713
4 Interest paid 018 -929.580 -559.014
5 Income tax paid 019 -892.908 -529.942
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019) 020 20.696.367 51.384.757
Cash flow from investment activities
1 Cash receipts from sales of fixed tangible and intangible assets 021 89.653 84.818
2 Cash receipts from sales of financial instruments 022 0 0
3 Interest received 023 0 0
4 Dividends received 024 0 0
5 Cash receipts from repayment of loans and deposits 025 0 0
6 Other cash receipts from investment activities 026 0 451
III Total cash receipts from investment activities (ADP 021 to 026) 027 89.653 85.269
1 Cash payments for the purchase of fixed tangible and intangible assets 028 -1.771.660 -6.666.498
2 Cash payments for the acquisition of financial instruments 029 0 0
3 Cash payments for loans and deposits for the period 030 0 0
4 Acquisition of a subsidiary, net of cash acquired 031 -30.000 -34.216.326
5 Other cash payments from investment activities 032 0 -7.000
IV Total cash payments from investment activities (ADP 028 to 032) 033 -1.801.660 -40.889.824
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033) 034 -1.712.007 -40.804.555
Cash flow from financing activities
1 Cash receipts from the increase in initial (subscribed) capital 035 0 0
2 Cash receipts from the issue of equity financial instruments and debt financial instruments 036 0 0
3 Cash receipts from credit principals, loans and other borrowings 037 35.693.501 2.328.972
4 Other cash receipts from financing activities 038 359.024 172.800
V Total cash receipts from financing activities (ADP 035 to 038) 039 36.052.525 2.501.772
1 Cash payments for the repayment of credit principals, loans and other borrowings and debt financial
instruments
040 -54.314.998 -7.063.340
2 Cash payments for dividends 041 -1.538.880 -9.713.775
3 Cash payments for finance lease 042 -18.187 -18.677
4 Cash payments for the redemption of treasury shares and decrease in initial (subscribed) capital 043 -2.033.202 -2.537.602
5 Other cash payments from financing activities 044 -968.598 -5.774.017
VI Total cash payments from financing activities (ADP 040 to 044) 045 -58.873.865 -25.107.411
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045) 046 -22.821.340 -22.605.639
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 -3.836.980 -12.025.437
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 049 29.585.124 139.791.228
F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD(ADP 048+049) 050 25.748.144 127.765.791

STATEMENT OF CHANGES IN EQUITY Span Group

for the period from 1.1.2022 to 30.6.2022 in HRK
Attributable to owners of the parent
Item AOP
code
Initial
(subscribed)
capital
Capital reserves Legal reserves Reserves for
treasury shares
Treasury shares
and holdings
(deductible item)
Statutory reserves Other reserves Revaluation reserves Fair value of financial
assets through other
comprehensive income
Cash flow hedge -
effective portion
Hedge of a net inve
stment in a foreign
operation - effective
Other fair value
reserves
Exchange rate
differences from
translation of foreign
Retained profit / loss
brought forward
Profit/loss for the
business year
Total attributable to
owners of the parent
"Minority (non-controlling)
interest"
Total capital and reserves
1 2 3 4 5 6 7 8 9 10 (available for sale)
11
12 portion
13
14 operations
15
16 17 18 (3 do 6 - 7 19 20 (18+19)
Previous period + 8 do 17)
1 Balance on the first day of the previous business year 01 19.600.000 0 8.476.501 28.400.000 28.400.000 0 0 8.451.348 0 0 0 0 -564.855 10.714.624 7.797.697 54.475.315 1.049.110 55.524.425
2 Changes in accounting policies 02 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
3 Correction of errors 03 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
4 Balance on the first day of the previous business year (restated) (ADP 01 to 03) 04 19.600.000 0 8.476.501 28.400.000 28.400.000 0 0 8.451.348 0 0 0 0 -564.855 10.714.624 7.797.697 54.475.315 1.049.110 55.524.425
5 Profit/loss of the period 05 0 0 0 0 0 0 0 0 0 0 0 0 0 0 23.718.783 23.718.783 104.734 23.823.517
6 Exchange rate differences from translation of foreign operations 06 0 0 0 0 0 0 0 0 0 0 0 0 832.185 0 0 832.185 0 832.185
7 Changes in revaluation reserves of fixed tangible and intangible assets 07 0 0 0 0 0 0 0 7.503.056 0 0 0 0 0 454.731 0 7.957.787 0 7.957.787
8 Gains or losses from subsequent measurement of financial assets at fair value through other
comprehensive income (available for sale)
08 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
9 Profit or loss arising from effective cash flow hedge 09 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
10 Profit or loss arising from effective hedge of a net investment in a foreign operation 10 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
11 Share in other comprehensive income/loss of companies linked by virtue of 11 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
participating interests
12 Actuarial gains/losses on the defined benefit obligation
12 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
13 Other changes in equity unrelated to owners 13 0 -19.328.200 0 0 0 0 0 0 0 0 0 0 0 19.328.200 0 0 0 0
14 Tax on transactions recognised directly in equity 14 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
15 Decrease in initial (subscribed) capital (other than arising from the pre-bankruptcy
settlement procedure or from the reinvestment of profit)
15 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
16 Decrease in initial (subscribed) capital arising from the pre-bankruptcy settlement procedure 16 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
17 Decrease in initial (subscribed) capital arising from the reinvestment of profit 17 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
18 Redemption of treasury shares/holdings 18 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
19 Payments from members/shareholders
20 Payment of share in profit/dividend
19
20
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-1.538.880
0
0
0
-1.538.880
0
0
0
-1.538.880
21 Other distributions and payments to members/shareholders 21 0 98.411.769 -814.716 -27.384.441 -27.384.441 0 0 0 0 0 0 0 0 9.547.704 0 107.144.757 -938 107.143.819
22 Transfer to reserves according to the annual schedule 22 0 0 590.640 0 0 0 0 0 0 0 0 0 0 7.207.057 -7.797.697 0 0 0
23 Increase in reserves arising from the pre-bankruptcy settlement procedure 23 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
24 Balance on the last day of the previous business year reporting period
(ADP 04 to 23)
24 19.600.000 79.083.569 8.252.425 1.015.559 1.015.559 0 0 15.954.404 0 0 0 0 267.330 45.713.436 23.718.783 192.589.947 1.152.906 193.742.853
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the IFRS)
I OTHER COMPREHENSIVE INCOME OF THE PREVIOUS PERIOD, NET OF TAX
(ADP 06 to 14)
25 0 -19.328.200 0 0 0 0 0 7.503.056 0 0 0 0 832.185 19.782.931 0 8.789.972 0 8.789.972
II COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD (ADP 05+25) 26 0 -19.328.200 0 0 0 0 0 7.503.056 0 0 0 0 832.185 19.782.931 23.718.783 32.508.755 104.734 32.613.489
III TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD RECOGNISED DIRECTLY IN 27 0 98.411.769 -224.076 -27.384.441 -27.384.441 0 0 0 0 0 0 0 0 15.215.881 -7.797.697 105.605.877 -938 105.604.939
EQUITY (ADP 15 to 23)
Current period
1 Balance on the first day of the current business year 28 19.600.000 79.083.569 8.252.425 1.015.559 1.015.559 0 0 15.954.404 0 0 0 0 267.330 45.713.436 23.718.783 192.589.947 1.152.906 193.742.853
2 Changes in accounting policies 29 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
3 Correction of errors 30 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
4 Balance on the first day of the current business year (restated) (AOP 28 to 30)
5 Profit/loss of the period
31
32
19.600.000
0
79.083.569
0
8.252.425
0
1.015.559
0
1.015.559
0
0
0
0
0
15.954.404
0
0
0
0
0
0
0
0
0
267.330
0
45.713.436
0
23.718.783
25.086.635
192.589.947
25.086.635
1.152.906
-595.102
193.742.853
24.491.533
6 Exchange rate differences from translation of foreign operations 33 0 0 0 0 0 0 0 0 0 0 0 0 448.621 0 0 448.621 0 448.621
7 Changes in revaluation reserves of fixed tangible and intangible assets 34 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
8 Gains or losses from subsequent measurement of financial assets at fair value through other
comprehensive income (available for sale)
35 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
9 Profit or loss arising from effective cash flow hedge 36 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
10 Profit or loss arising from effective hedge of a net investment in a foreign operation 37 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
11 Share in other comprehensive income/loss of companies linked by virtue of participating 38 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
interests
12 Actuarial gains/losses on the defined benefit obligation
39 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
13 Other changes in equity unrelated to owners 40 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
14 Tax on transactions recognised directly in equity 41 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
15 Decrease in initial (subscribed) capital (other than arising from the pre-bankruptcy settle
ment procedure or from the reinvestment of profit)
42 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
16 Decrease in initial (subscribed) capital arising from the pre-bankruptcy settlement procedure 43 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
17 Decrease in initial (subscribed) capital arising from the reinvestment of profit 44 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
18 Redemption of treasury shares/holdings 45 0 0 0 4.240.000 4.240.000 0 0 0 0 0 0 0 0 0 0 0 0 0
19 Payments from members/shareholders 46 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
20 Payment of share in profit/dividend 47 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -9.713.775 -9.713.775 0 -9.713.775
21 Other distributions and payments to members/shareholders 48 0 2.175.178 0 1.917.890 1.917.890 0 0 0 0 0 0 0 0 -1.786.733 0 388.445 -58.684 329.761
22 Carryforward per annual plane
23 Increase in reserves arising from the pre-bankruptcy settlement procedure
49
50
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
14.005.008
0
-14.005.008
0
0
0
0
0
0
0
24 Balance on the last day of the current business year reporting period (ADP 31 to 50) 51 19.600.000 81.258.747 8.252.425 7.173.449 7.173.449 0 0 15.954.404 0 0 0 0 715.951 57.931.711 25.086.635 208.799.873 499.120 209.298.993
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the IFRS)
I OTHER COMPREHENSIVE INCOME FOR THE CURRENT PERIOD, NET OF TAX (ADP 33 to 41) 52 0 0 0 0 0 0 0 0 0 0 0 0 448.621 0 0 448.621 0 448.621
II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP 32 do 52) 53 0 0 0 0 0 0 0 0 0 0 0 0 448.621 0 25.086.635 25.535.256 -595.102 24.940.154
III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED DIRECTLY IN
EQUITY (ADP 42 to 50)
54 0 2.175.178 0 6.157.890 6.157.890 0 0 0 0 0 0 0 0 12.218.275 -23.718.783 -9.325.330 -58.684 -9.384.014

Span d.d.

STATEMENT OF PROFIT OR LOSS
for the period 1.1.2022 to 30.6.2022
in HRK
Submitter: Span d.d. Current period
Item AOP
code
Cumulative Same period of the previous year
Quarter
Cumulative Quarter
1 2 3 4 5 6
I OPERATING INCOME (ADP 002 to 006) 001 263.337.925 157.424.167 330.790.235 183.493.533
1 Income from sales with undertakings within the group 002 72.729.510 43.764.613 78.223.170 42.750.106
2 Income from sales (outside group) 003 189.281.877 112.936.383 251.608.634 140.346.843
3 Income from the use of own products, goods and services 004 0 0 0 0
4 Other operating income with undertakings within the group 005 252.272 50.881 48.816 18.073
5 Other operating income (outside the group) 006 1.074.266 672.290 909.615 378.511
II OPERATING EXPENSES (ADP 08+009+013+017+018+019+022+029) 007 255.756.650 157.756.715 306.859.759 178.153.527
1 Changes in inventories of work in progress and finished goods 008 0 0 0 0
2 Material costs (ADP 010 to 012) 009 193.879.221 125.583.034 228.078.842 137.518.352
a) Costs of raw materials and consumables 010 1.052.072 498.142 2.227.748 1.112.483
b) Costs of goods sold 011 167.526.531 109.347.624 193.597.567 119.855.661
c) Other external costs 012 25.300.618 15.737.268 32.253.527 16.550.208
3 Staff costs (ADP 014 to 016) 013 51.646.942 27.078.864 67.079.739 34.904.574
a) Net salaries and wages 014 30.679.531 15.810.571 41.680.156 21.894.097
b) Tax and contributions from salary costs 015 15.414.531 8.455.019 18.823.002 9.649.457
c) Contributions on salaries 016 5.552.880 2.813.274 6.576.581 3.361.020
4 Depreciation 017 6.543.733 3.246.587 6.849.372 3.532.980
5 Other costs 018 3.634.827 1.797.789 4.839.180 2.194.014
6 Value adjustments (ADP 020+021) 019 51.927 50.441 12.626 3.607
a) fixed assets other than financial assets 020 0 0 0 0
b) current assets other than financial assets 021 51.927 50.441 12.626 3.607
7 Provisions (ADP 023 to 028) 022 0 0 0 0
a) Provisions for pensions, termination benefits and similar obligations 023 0 0 0 0
b) Provisions for tax liabilities 024 0 0 0 0
c) Provisions for ongoing legal cases 025 0 0 0 0
d) Provisions for renewal of natural resources 026 0 0 0 0
e) Provisions for warranty obligations 027 0 0 0 0
f) Other provisions 028 0 0 0 0
8 Other operating expenses 029 0 0 0 0
III FINANCIAL INCOME (ADP 031 to 040) 030 2.258.418 645.173 3.146.516 2.415.166
1 Income from investments in holdings (shares) of undertakings within the group 031 0 0 0 0
2 Income from investments in holdings (shares) of companies linked by virtue of
participating interests
032 0 0 0 0
3 Income from other long-term financial investment and loans granted to undertakings
within the group
033 0 0 0 0
4 Other interest income from operations with undertakings within the group 034 0 0 0 0
5 Exchange rate differences and other financial income from operations with
undertakings within the group
035 0 202.266 75.145
6 Income from other long-term financial investments and loans 036 0 0 0 0
7 Other interest income 037 248.690 247.107 57.671 57.492
8 Exchange rate differences and other financial income 038 2.009.728 398.066 2.886.579 2.282.529
9 Unrealised gains (income) from financial assets 039 0 0 0 0
10 Other financial income 040 0 0 0 0
IV FINANCIAL EXPENSES (ADP 042 to 048) 041 2.574.908 1.534.180 1.838.185 818.119
1 Interest expenses and similar expenses with undertakings within the group 042 0 0 0 0
2 Exchange rate differences and other expenses from operations with undertakings
within the group
043 0 76.228 73.749
3 Interest expenses and similar expenses 044 770.878 375.333 433.780 225.415
4 Exchange rate differences and other expenses 045 1.804.030 1.158.847 1.328.177 518.955
5 Unrealised losses (expenses) from financial assets 046 0 0 0 0
6 Value adjustments of financial assets (net) 047 0 0 0 0
7 Other financial expenses 048 0 0 0 0
V SHARE IN PROFIT FROM UNDERTAKINGS LINKED BY VRITUE OF PARTICIPATING
INTERESTS
049 0 0 0 0
UNAUDITED FINANCIAL STATEMENTS OF SPAN GROUP AND SPAN D.D. / JANUARY − JUNE 2022

VI SHARE IN PROFIT FROM JOINT VENTURES 050 0 0 0 0 VII SHARE IN LOSS OF COMPANIES LINKED BY VIRTUE OF PARTICIPATING INTEREST 051 0 0 0 0 VIII SHARE IN LOSS OF JOINT VENTURES 052 0 0 0 0 IX TOTAL INCOME (ADP 001+030+049 +050) 053 265.596.343 158.069.340 333.936.751 185.908.699 X TOTAL EXPENDITURE (ADP 007+041+051 + 052) 054 258.331.558 159.290.895 308.697.944 178.971.646 XI PRE-TAX PROFIT OR LOSS (ADP 053-054) 055 7.264.785 -1.221.555 25.238.807 6.937.053 1 Pre-tax profit (ADP 053-054) 056 7.264.785 0 25.238.807 6.937.053

2 Pre-tax loss (ADP 054-053) 057 0 -1.221.555 0 0
XII INCOME TAX 058 1.173.936 150.112 593.196 296.598
XIII PROFIT OR LOSS FOR THE PERIOD (ADP 055-059) 059 6.090.849 -1.371.667 24.645.611 6.640.455
1 Profit for the period (ADP 055-059) 060 6.090.849 0 24.645.611 6.640.455
2 Loss for the period (ADP 059-055) 061 0 -1.371.667 0 0
DISCONTINUED OPERATIONS (to be filled in by undertakings subject to IFRS only with discontinued operations)
XIV PRE-TAX PROFIT OR LOSS OF DISCONTINUED OPERATIONS (ADP 063-064) 062 0 0 0 0
1 Pre-tax profit from discontinued operations 063 0 0 0 0
2 Pre-tax loss on discontinued operations 064 0 0 0 0
XV INCOME TAX OF DISCONTINUED OPERATIONS 065 0 0 0 0
1 Discontinued operations profit for the period (ADP 062-065) 066 0 0 0 0
2 Discontinued operations loss for the period (ADP 065-062) 067 0 0 0 0
TOTAL OPERATIONS (to be filled in only by undertakings subject to IFRS with discontinued operations)
XVI PRE-TAX PROFIT OR LOSS (ADP 055-+062) 068 0 0 0 0
1 Pre-tax profit (ADP 068) 069 0 0 0 0
2 Pre-tax loss (ADP 068) 070 0 0 0 0
XVII INCOME TAX (ADP 058+065) 071 0 0 0 0
XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 068-071) 072 0 0 0 0
1 Profit for the period (ADP 068-071) 073 0 0 0 0
2 Loss for the period (ADP 071-068) 074 0 0 0 0
APPENDIX to the P&L (to be filled in by undertakings that draw up consolidated annual financial statements)
XIX PROFIT OR LOSS FOR THE PERIOD (ADP 076+077) 075 0 0 0 0
1 Attributable to owners of the parent 076 0 0 0 0
2 Attributable to minority (non-controlling) interest 077 0 0 0 0
STATEMENT OF OTHER COMPRHENSIVE INCOME (to be filled in by undertakings subject to IFRS)
I PROFIT OR LOSS FOR THE PERIOD 078 6.090.849 -1.371.667 24.645.611 6.640.455
II OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX (ADP 80+ 87) 079 0 0 0 0
III Items that will not be reclassified to profit or loss (ADP 081 to 085) 080 0 0 0 0
1 Changes in revaluation reserves of fixed tangible and intangible assets 081 0 0 0 0
2 Gains or losses from subsequent measurement of equity instruments at fair value
through other comprehensive income
082 0 0 0 0
3 Fair value changes of financial liabilities at fair value through statement of profit or
loss, attributable to changes in their credit risk
083 0 0 0 0
4 Actuarial gains/losses on the defined benefit obligation 084 0 0 0 0
5 Other items that will not be reclassified 085 0 0 0 0
6 Income tax relating to items that will not be reclassified 086 0 0 0 0
IV Items that may be reclassified to profit or loss (ADP 088 to 095) 087 0 0 0 0
1 Exchange rate differences from translation of foreign operations 088 0 0 0 0
2 Gains or losses from subsequent measurement of debt securities at fair value through
other comprehensive income
089 0 0 0 0
3 Profit or loss arising from effective cash flow hedging 090 0 0 0 0
4 Profit or loss arising from effective hedge of a net investment in a foreign operation 091 0 0 0 0
5 Share in other comprehensive income/loss of companies linked by virtue of
participating interests
092 0 0 0 0
6 Changes in fair value of the time value of option 093 0 0 0 0

7 Changes in fair value of forward elements of forward contracts 094 0 0 0 0 8 Other items that may be reclassified to profit or loss 095 0 0 0 0 9 Income tax relating to items that may be reclassified to profit or loss 096 0 0 0 0 V NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 080+087- 086 - 096) 097 0 0 0 0 VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 078+097) 098 6.090.849 -1.371.667 24.645.611 6.640.455

APPENDIX to the Statement on comprehensive income (to be filled in by undertakings that draw up consolidated statements)

VII COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 100+101) 099 0 0 0 0 1 Attributable to owners of the parent 100 0 0 0 0 2 Attributable to minority (non-controlling) interest 101 0 0 0 0

Span d.d.

BALANCE SHEET
balance as at 30.6.2022
in HRK
Submitter: Span d.d.
Item ADP
code
Last day of the preceding
business year
At the reporting date of the
current period
1 2 3 4
A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID 001 0 0
B) FIXED ASSETS (ADP 003+010+020+031+036) 002 106.690.052 136.373.383
I INTANGIBLE ASSETS (ADP 004 to 009) 003 18.487.016 27.615.541
1 Research and development 004 6.907.749 5.831.864
2 Concessions, patents, licences, trademarks, software and other rights 005 373.669 2.306.702
3 Goodwill 006 10.780.605 17.485.201
4 Advances for the purchase of intangible assets 007 0 0
5 Intangible assets in preparation 008 424.993 1.991.774
6 Other intangible assets 009 0 0
II TANGIBLE ASSETS (ADP 011 to 019) 010 53.122.234 53.349.117
1 Land 011 13.049.681 13.049.681
2 Buildings 012 29.637.897 29.528.039
3 Plant and equipment 013 3.012.279 3.744.187
4 Tools, working inventory and transportation assets 014 7.422.377 7.027.210
015 0 0
5 Biological assets
6 Advances for the purchase of tangible assets 016 0 0
7 Tangible assets in preparation 017 0 0
8 Other tangible assets 018 0 0
9 Investment property 019 0 0
III FIXED FINANCIAL ASSETS (ADP 021 to 030) 020 28.124.898 49.011.987
1 Investments in holdings (shares) of undertakings within the group 021 27.768.705 48.274.271
2 Investments in other securities of undertakings within the group 022 0 0
3 Loans, deposits, etc. to undertakings within the group 023 0 0
4. Investments in holdings (shares) of companies linked by virtue of participating interests 024 0 7.000
5 Investment in other securities of companies linked by virtue of participating interests 025 0 0
6 Loans, deposits etc. to companies linked by virtue of participating interests 026 0 0
7 Investments in securities 027 0 0
8 Loans, deposits, etc. given 028 245.488 245.488
9 Other investments accounted for using the equity method 029 0 0
10 Other fixed financial assets 030 110.705 485.228
IV RECEIVABLES (ADP 032 to 035) 031 4.285 3.834
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 4.285 3.834
V DEFERRED TAX ASSETS 036 6.951.619 6.392.904
C) CURRENT ASSETS (ADP 038+046+053+063) 037 187.418.288 241.617.618
I INVENTORIES (ADP 039 to 045) 038 1.972.414 4.371.395
1 Raw materials and consumables 039 0 0
2 Work in progress 040 0 0
3 Finished goods 041 0 0
4 Merchandise 042 1.972.414 4.371.395
5 Advances for inventories 043 0 0
6 Fixed assets held for sale 044 0 0
7 Biological assets 045 0 0
II RECEIVABLES (ADP 047 to 052) 046 58.526.117 132.590.912
1 Receivables from undertakings within the group 047 7.012.558 22.408.733
2 Receivables from companies linked by virtue of participating interests 048 0 0
3 Customer receivables 049 49.028.871 106.808.630
4 Receivables from employees and members of the undertaking 050 0 0
5 Receivables from government and other institutions 051 319.860 304.369
6 Other receivables 052 2.164.828 3.069.180
III CURRENT FINANCIAL ASSETS (ADP 054 to 062) 053 0 1.300.000
1 Investments in holdings (shares) of undertakings within the group 054 0 0
2 Investments in other securities of undertakings within the group 055 0 0
3 Loans, deposits, etc. to undertakings within the group 056 0 300.000
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 participating interests 058 0 0
6 Loans, deposits etc. to companies linked by virtue of participating interests 059 0 1.000.000
7 Investments in securities 060 0 0
UNAUDITED FINANCIAL STATEMENTS OF SPAN GROUP AND SPAN D.D. / JANUARY − JUNE 2022

8 Loans, deposits, etc. given 061 0 0 9 Other financial assets 062 0 0 IV CASH AT BANK AND IN HAND 063 126.919.757 103.355.311 D ) PREPAID EXPENSES AND ACCRUED INCOME 064 23.795.411 10.570.034 E) TOTAL ASSETS (ADP 001+002+037+064) 065 317.903.751 388.561.035 OFF-BALANCE SHEET ITEMS 066 0 0

A) CAPITAL AND RESERVES (ADP 068 to 070+076+077+081+084+087) 067 192.916.583 199.967.416

LIABILITIES

I INITIAL (SUBSCRIBED) CAPITAL 068 19.600.000 19.600.000
II CAPITAL RESERVES 069 79.083.569 81.258.747
III RESERVES FROM PROFIT (ADP 071+072-073+074+075) 070 7.412.739 7.412.739
1 Legal reserves 071 7.412.739 7.412.739
2 Reserves for treasury shares 072 615.559 3.655.940
3 Treasury shares and holdings (deductible item) 073 -615.559 -3.655.940
4 Statutory reserves 074 0 0
5 Other reserves 075 0 0
IV REVALUATION RESERVES 076 15.954.404 15.954.404
V FAIR VALUE RESERVES AND OTHER (ADP 078 to 082) 077 0 0
1 Financial assets at fair value through other comprehensive income (i.e. 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
4 Other fair value reserves 081 0 0
5 Exchange differences arising from the translation of foreign operations (consolidation) 082 0 0
VI RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 084-085) 083 51.506.377 51.095.915
1 Retained profit 084 51.506.377 51.095.915
2 Loss brought forward 085 0 0
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 087-088) 086 19.359.494 24.645.611
1 Profit for the business year 087 19.359.494 24.645.611
2 Loss for the business year 088 0 0
VIII MINORITY (NON-CONTROLLING) INTEREST 089 0 0
B) PROVISIONS (ADP 091 to 096) 090 0 0
1 Provisions for pensions, termination benefits and similar obligations 091 0 0
2 Provisions for tax liabilities 092 0 0
3 Provisions for ongoing legal cases 093 0 0
4 Provisions for renewal of natural resources 094 0 0
5 Provisions for warranty obligations 095 0 0
6 Other provisions 096 0 0
C) LONG-TERM LIABILITIES (ADP 098 to 108) 097 29.148.993 27.046.620
1 Liabilities to undertakings within the group 098 0 0
2 Liabilities for loans, deposits, etc. of undertakings within the group 099 0 0
3 Liabilities to companies linked by virtue of participating interests 100 0 0
4 Liabilities for loans, deposits etc. of companies linked by virtue of participating interests 101 0 0
5 Liabilities for loans, deposits etc. 102 0 0
6 Liabilities to banks and other financial institutions 103 6.895.152 6.905.201
7 Liabilities for advance payments 104 0 0
8 Liabilities to suppliers 105 0 0
9 Liabilities for securities 106 0 0
10 Other long-term liabilities 107 18.751.655 16.639.233
11 Deferred tax liability 108 3.502.186 3.502.186
D) SHORT-TERM LIABILITIES (ADP 110 to 123) 109 79.709.966 144.952.240
1 Liabilities to undertakings within the group 110 1.241.757 836.514
2 Liabilities for loans, deposits, etc. of undertakings within the group 111 0 0
3 Liabilities to companies linked by virtue of participating interests 112 0 0
4 Liabilities for loans, deposits etc. of companies linked by virtue of participating interests 113 0 0
5 Liabilities for loans, deposits etc. 114 0 0
6 Liabilities to banks and other financial institutions 115 7.212.661 3.598.462
7 Liabilities for advance payments 116 1.318.683 1.158.285
8 Liabilities to suppliers 117 38.131.824 93.488.136
9 Liabilities for securities 118 0 0
10 Liabilities to employees 119 5.990.115 6.889.616
11 Taxes, contributions and similar liabilities 120 7.241.434 9.567.257

12 Liabilities arising from the share in the result 121 0 0 13 Liabilities arising from fixed assets held for sale 122 0 0 14 Other short-term liabilities 123 18.573.492 29.413.970 E) ACCRUALS AND DEFERRED INCOME 124 16.128.209 16.594.759 F) TOTAL – LIABILITIES (ADP 067+090+097+109+124) 125 317.903.751 388.561.035 G) OFF-BALANCE SHEET ITEMS 126 0 0

Span d.d.

STATEMENT OF CASH FLOWS - indirect method
for the period 1.1.2022 to 30.6.2022
in HRK
Submitter: Span d.d.
Item ADP
code
Same period of the
previous year
Current period
1 2 3 4
Cash flow from operating activities
1 Pre-tax profit 001 7.264.785 25.238.807
2 Adjustments (ADP 003 to 010): 002 6.867.535 7.207.075
a) Depreciation 003 6.543.733 6.849.372
b) Gains and losses from sale and value adjustment of fixed tangible and intangible assets 004 -32.789 -31.032
c) Gains and losses from sale and unrealised gains and losses and value adjustment of financial assets 005 0 12.626
d) Interest and dividend income 006 -248.690 -57.671
e) Interest expenses 007 770.878 433.780
f) Provisions 008 0 0
g) Exchange rate differences (unrealised) 009 -165.597 0
h) Other adjustments for non-cash transactions and unrealised gains and losses 010 0 0
I Cash flow increase or decrease before changes in working capital (ADP 001+002) 011 14.132.320 32.445.882
3 Changes in the working capital (ADP 013 to 016) 012 9.372.089 8.836.704
a) Increase or decrease in short-term liabilities 013 30.126.648 68.011.552
b) Increase or decrease in short-term receivables 014 -26.837.833 -70.467.794
c) Increase or decrease in inventories 015 -209.361 -2.398.981
d) Other increase or decrease in working capital 016 6.292.635 13.691.927
II Cash from operations (ADP 011+012) 017 23.504.409 41.282.586
4 Interest paid 018 -827.315 -459.292
5 Income tax paid 019 -356.489 -303.857
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019) 020 22.320.605 40.519.437
Cash flow from investment activities
1 Cash receipts from sales of fixed tangible and intangible assets 021 96.210 55.895
2 Cash receipts from sales of financial instruments 022 0 0
3 Interest received 023 0 0
4 Dividends received 024 0 0
5 Cash receipts from repayment of loans and deposits 025 0 0
6 Other cash receipts from investment activities 026 0 451
III Total cash receipts from investment activities (ADP 021 to 026) 027 96.210 56.346
1 Cash payments for the purchase of fixed tangible and intangible assets 028 -1.475.306 -5.968.854
2 Cash payments for the acquisition of financial instruments 029 0 0
3 Cash payments for loans and deposits for the period 030 0 0
4 Acquisition of a subsidiary, net of cash acquired 031 0 -37.389.637
5 Other cash payments from investment activities 032 0 -7.000
IV Total cash payments from investment activities (ADP 028 to 032) 033 -1.475.306 -43.365.491
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033) 034 -1.379.096 -43.309.145
Cash flow from financing activities
1 Cash receipts from the increase in initial (subscribed) capital 035 0 0
2 Cash receipts from the issue of equity financial instruments and debt financial instruments 036 0 0
3 Cash receipts from credit principals, loans and other borrowings 037 34.256.411 0
4 Other cash receipts from financing activities 038 320.892 57.671
V Total cash receipts from financing activities (ADP 035 to 038) 039 34.577.303 57.671
1 Cash payments for the repayment of credit principals, loans and other borrowings and debt financial
instruments
040 -52.668.302 -5.308.744
2 Cash payments for dividends 041 -1.538.880 -9.713.775
3 Cash payments for finance lease 042 -18.187 -18.677
4 Cash payments for the redemption of treasury shares and decrease in initial (subscribed) capital 043 -2.033.202 -2.537.602
5 Other cash payments from financing activities 044 -1.078.747 -3.253.611
VI Total cash payments from financing activities (ADP 040 to 044) 045 -57.337.318 -20.832.409
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045) 046 -22.760.015 -20.774.738
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 -1.818.506 -23.564.446
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 049 16.032.199 126.919.757
F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD(ADP 048+049) 050 14.213.693 103.355.311
UNAUDITED FINANCIAL STATEMENTS OF SPAN GROUP AND SPAN D.D. / JANUARY − JUNE 2022

STATEMENT OF CHANGES IN EQUITY Span d.d.

for the period from 1.1.2022 to 30.6.2022 u kunama
Attributable to owners of the parent
Item AOP
code
Initial (subscribed) capital Capital reserves Legal reserves Reserves for treasury
shares
Treasury shares
and holdings
(deductible item)
Statutory reserves Other reserves Revaluation reserves Fair value of financial
assets through
other comprehensive
income (available
for sale)
Cash flow hedge -
effective portion
Hedge of a net inve
stment in a foreign
operation - effective
portion
Other fair value
reserves
Exchange rate
differences from
translation of foreign
operations
Retained profit / loss
brought forward
Profit/loss for the
business year
Total attributable to owners of
the parent
"Minority (non-controlling)
interest"
Total capital and reserves
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 (3 do 6 - 7 19 20 (18+19)
+ 8 do 17)
Previous period
1 Balance on the first day of the previous business year
01 19.600.000 0 8.072.428 28.000.000 28.000.000 0 0 8.451.348 0 0 0 0 0 17.374.032 6.495.617 59.993.425 0 59.993.425
2 Changes in accounting policies 02 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
3 Correction of errors 03 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
4 Balance on the first day of the previous business year (restated) (ADP 01 to 03) 04 19.600.000 0 8.072.428 28.000.000 28.000.000 0 0 8.451.348 0 0 0 0 0 17.374.032 6.495.617 59.993.425 0 59.993.425
5 Profit/loss of the period 05 0 0 0 0 0 0 0 0 0 0 0 0 0 0 19.359.494 19.359.494 0 19.359.494
6 Exchange rate differences from translation of foreign operations 06 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
7 Changes in revaluation reserves of fixed tangible and intangible assets 07 0 0 0 0 0 0 0 7.503.056 0 0 0 0 0 454.731 0 7.957.787 0 7.957.787
8 Gains or losses from subsequent measurement of financial assets at fair value
through other comprehensive income (available for sale)
08 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
9 Profit or loss arising from effective cash flow hedge 09 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
10 Profit or loss arising from effective hedge of a net investment in a foreign
operation
10 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
11 Share in other comprehensive income/loss of companies linked by virtue of
participating interests
11 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
12 Actuarial gains/losses on the defined benefit obligation 12 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
13 Other changes in equity unrelated to owners 13 0 -19.328.200 0 0 0 0 0 0 0 0 0 0 0 19.328.200 0 0 0 0
14 Tax on transactions recognised directly in equity
15 Decrease in initial (subscribed) capital (other than arising from the
14 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
pre-bankruptcy settlement procedure or from the reinvestment of profit) 15 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
16 Decrease in initial (subscribed) capital arising from the pre-bankruptcy
settlement procedure
16 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
17 Decrease in initial (subscribed) capital arising from the reinvestment of profit 17 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
18 Redemption of treasury shares/holdings 18 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
19 Payments from members/shareholders
20 Payment of share in profit/dividend
19
20
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-1.538.880
0
0
0
-1.538.880
0
0
0
-1.538.880
21 Other distributions and payments to members/shareholders 21 0 98.411.769 -984.470 -27.384.441 -27.384.441 0 0 0 0 0 0 0 0 9.717.458 0 107.144.757 0 107.144.757
22 Transfer to reserves according to the annual schedule 22 0 0 324.781 0 0 0 0 0 0 0 0 0 0 6.170.836 -6.495.617 0 0 0
23 Increase in reserves arising from the pre-bankruptcy settlement procedure
24 Balance on the last day of the previous business year reporting period
23 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
(ADP 04 to 23) 24 19.600.000 79.083.569 7.412.739 615.559 615.559 0 0 15.954.404 0 0 0 0 0 51.506.377 19.359.494 192.916.583 0 192.916.583
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the IFRS)
I OTHER COMPREHENSIVE INCOME OF THE PREVIOUS PERIOD, NET OF TAX
(ADP 06 to 14)
25 0 -19.328.200 0 0 0 0 0 7.503.056 0 0 0 0 0 19.782.931 0 7.957.787 0 7.957.787
II COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD (ADP 05+25) 26 0 -19.328.200 0 0 0 0 0 7.503.056 0 0 0 0 0 19.782.931 19.359.494 27.317.281 0 27.317.281
III TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD RECOGNISED
DIRECTLY IN EQUITY (ADP 15 to 23)
27 0 98.411.769 -659.689 -27.384.441 -27.384.441 0 0 0 0 0 0 0 0 14.349.414 -6.495.617 105.605.877 0 105.605.877
Current period
1 Balance on the first day of the current business year
2 Changes in accounting policies
28
29
19.600.000
0
79.083.569
0
7.412.739
0
615.559
0
615.559
0
0
0
0
0
15.954.404
0
0
0
0
0
0
0
0
0
0
0
51.506.377
0
19.359.494
0
192.916.583
0
0
0
192.916.583
0
3 Correction of errors 30 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
4 Balance on the first day of the current business year (restated) (AOP 28 to 30) 31 19.600.000 79.083.569 7.412.739 615.559 615.559 0 0 15.954.404 0 0 0 0 0 51.506.377 19.359.494 192.916.583 0 192.916.583
5 Profit/loss of the period 32 0 0 0 0 0 0 0 0 0 0 0 0 0 0 24.645.611 24.645.611 0 24.645.611
6 Exchange rate differences from translation of foreign operations 33 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
7 Changes in revaluation reserves of fixed tangible and intangible assets 34 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
8 Gains or losses from subsequent measurement of financial assets at fair value
through other comprehensive income (available for sale)
35 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
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
36 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
operation
11 Share in other comprehensive income/loss of companies linked by virtue of
37 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
participating interests 38 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
12 Actuarial gains/losses on the defined benefit obligation 39 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
13 Other changes in equity unrelated to owners
14 Tax on transactions recognised directly in equity
40
41
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
15 Decrease in initial (subscribed) capital (other than arising from the pre-bankrupt 42 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
cy settlement procedure or from the reinvestment of profit)
16 Decrease in initial (subscribed) capital arising from the pre-bankruptcy
settlement procedure 43 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
17 Decrease in initial (subscribed) capital arising from the reinvestment of profit
18 Redemption of treasury shares/holdings
44
45
0
0
0
0
0
0
0
4.240.000
0
4.240.000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
19 Payments from members/shareholders 46 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
20 Payment of share in profit/dividend 47 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -9.713.775 -9.713.775 0 -9.713.775
21 Other distributions and payments to members/shareholders 48 0 2.175.178 0 -1.199.619 -1.199.619 0 0 0 0 0 0 0 0 -10.056.181 0 -7.881.003 0 -7.881.003
22 Carryforward per annual plane
23 Increase in reserves arising from the pre-bankruptcy settlement procedure
49
50
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
9.645.719
0
-9.645.719
0
0
0
0
0
0
0
24 Balance on the last day of the current business year reporting period (ADP
31 to 50)
51 19.600.000 81.258.747 7.412.739 3.655.940 3.655.940 0 0 15.954.404 0 0 0 0 0 51.095.915 24.645.611 199.967.416 0 199.967.416
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the IFRS)
I OTHER COMPREHENSIVE INCOME FOR THE CURRENT PERIOD, NET OF TAX
(ADP 33 to 41)
52 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP 32 do 52) 53 0 0 0 0 0 0 0 0 0 0 0 0 0 0 24.645.611 24.645.611 0 24.645.611
III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED
DIRECTLY IN EQUITY (ADP 42 to 50)
54 0 2.175.178 0 3.040.381 3.040.381 0 0 0 0 0 0 0 0 -410.462 -19.359.494 -17.594.778 0 -17.594.778

4. Notes 4.1. Notes accompanying Financial Statements (drawn up for quarterly reporting periods)

Issuer name: Span d.d
Address: Koturaška cesta 47, 10000 Zagreb
OIB: 19680551758
MBS: 080192242
Reporting period: January 1st – June 30th 2022

Notes to the financial statements for first six months of 2022 are included in the Unaudited Business Results of Span Group and Span d.d. for first six months of 2022., available on Zagreb Stock Exchange website.

Annual Report of Span Group and Span d.d. for 2021 is available on Span d.d. website.

The accounting policies applied in the preparation of the financial statements for the reporting period are the same as in the most recent annual financial statements.

Span d.d. issued corporate guarantees in the amount of HRK 10,610 thousand, debentures in the amount of HRK 172,592 thousand (of which HRK 7,767 thousand for affiliated companies) and bills of exchange in the amount of HRK 18,067 thousand.

Average number of Span Group employees in the period from 1.1.2022. to 30.06.2022. was 651. The average number of employees of Span d.d. in the period from 1.1.2022. to 30.06.2022. was 501.

In the observed period, the company Span d.d. capitalized labor costs related to the continued development of internally generated intangible assets. The total amount of employee costs during the period, amounts to HRK 68,647 thousand, out of which HRK 67,080 thousand is directly charged to the costs of the period, while HRK1,567 thousand is capitalized. Capitalized cost is broken down into net salaries (HRK 942 thousand), taxes and contributions from salaries (HRK 453 thousand) and contributions to salaries (HRK 171 thousand).

In the observed period, Span Group capitalized labor costs related to the continued development of internally generated intangible assets. Total amount personel expensess during the period amounts to HRK 92,184 thousand, of which the amount of HRK 90,336 thousand is directly charged to the expenses of the period, while HRK 1,848 thousand is capitalized. Capitalized cost is broken down into net salaries (HRK 1,128 thousand), taxes and contributions from salaries (HRK 538 thousand) and contributions to salaries (HRK 182 thousand).

Deferred tax assets of Span Group as at 31 December 2021 amount to HRK 7,729 thousand, while for Span d.d. it amounts to HRK 6,952 thousand. In Span Group, the decrease in the amount of HRK 586 thousand relates to the recognition of deferred tax assets due to losses incurred by certain affiliates and the decrease in the amount of HRK 593 thousand in the reporting period relates to the recognition of deferred tax assets on the basis of tax relief based on investment aid received from the Ministry of the Economy,Entrepreneurship and Crafts for Span dd

Span d.d. holds a participating stake in Trilix d.o.o. Zagreb and Bonsai d.o.o. Zagreb. The amount of capital that Span d.d. holds in Trilix d.o.o. amounts to 60%, ie HRK 1,037 thousand, the amount of total capital and reserves of Trilix d.o.o. amounts to HRK 1,729 thousand, and the profit in the business year 2021 amounts to HRK 36 thousand. The amount of capital that Span d.d. holds in Bonsai d.o.o. amounts to 70%, or HRK 1,000 thousand, the amount of total capital and reserves of Bonsai d.o.o. amounts to HRK 1,429 thousand, and the profit in the business year 2021 amounts to HRK 618 thousand.

Companies where Span d.d. has unlimited liability are: Span d.o.o. Ljubljana, Span IT Ltd. London, Span USA Inc., Oak Brook, Span LLC Baku, Span GmbH Munich, LLC Span Kiev, SPAN SWISS AG Zurich SPAN-IT SRL Moldova and Ekobit d.o.o., Zagreb.

5. Statement on responsibility for compiling a report in the observed period

Statement

Unaudited financial statements of Span d.d. and Span Group for the period from January 1st to June 30th, 2022, shown to be fair and truthful in accordance with International Financial Reporting Standards which have been consistently applied in relation to previous years.

All materially significant transactions were accordingly recorded in the accounting records, which were the basis of the financial statements. They give a truthful and complete overview of assets and obligations, the financial position and business activities of the Span d.d. and Span Group.

Nikola Dujmović Predsjednik Uprave, Span d.d

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