TANKERSKA NEXT GENERATION

UNAUDITED FINANCIAL STATEMENTS FOR THE THIRD QUARTER AND THE FIRST NINE MONTHS OF 2022

Contents Management report

	2
Market environment	4
Results for the period	5
Operational data of the fleet	9
Financial position summary	12
Risk management	20
Unaudited financial statements	23
Notes to the financial statements	32
Important terms and concepts	36
Cautionary note	43
Contact	44

Management report

for the period from 1 st January until 30 th Sep, 2022

Results Q1-Q3 2022

Vessel revenues USD 51.9m

EBITDA USD 22.7m

EBIT USD 16.8m

Net income USD 9.3m

TCE NET 21,361 USD/day

OPEX 7,077 USD/day Tanker markets continue their rise in the third quarter. Markets east of the Suez led the dramatic upswing to already exceptionally high levels, while the Atlantic basin market for MR tankers averaged slightly lower with somewhat more pronounced volatility.

Considering the strong dynamics on the market of product tankers in the third quarter, and their positive impact on total revenues, i.e. on business performance, the Company decided, unlike the previous practice, to track the reporting period in a slightly modified format.

Following on from the introductory part, the numbers and financial results should dominate compared to the previous practice of more extensive descriptive reporting. Due to the specificity of the situation and the significantly changed circumstances, we believe that financial indicators alone will be the best medium for expressively portraying the current environment. At these times when our competition in the MR tanker segment is also successful, it is clear that financial achievements are not lacking. We shall leave the description of the market, already associated with superlatives, to the numbers.

The challenges of particular interest to our business remain the same in all three quarters so far, with the exception of the challenges concerning seafarers, whose position has improved due to the marginalized impact of the pandemic, resulting in the liberalization of seafarers' embarkation and disembarkation. External factors or drivers in the third quarter remain largely the same as in the previous two. The Ukrainian crisis, decarbonisation, sanctions and digitalization, to name just a few, which have become regular headlines. Most of these prominent themes from the second half of the first quarter became even more apparent in the second quarter and later additionally sharpened in intensity in the third. Fortunately, the exception is the situation regarding the well-being of the crews, which is now within acceptable limits, since the challenges and dangers have been pushed into the background together with the pandemic. Although both seem to

be waning in parallel, seafarers still bear the long-term consequences together with their families and ultimately with all of us.

On the other hand, in addition to objective difficulties, charterer's speculations about possible outcomes, i.e. about the development of today's situation that affects the political environment, in many ways influenced the formation of a highly sensitized market in addition to the already palpable restrictions regarding navigable areas, where we primarily mean the area of the Black and Baltic Seas.

There was, and still is, a high level of uncertainty surrounding Russian exports of crude oil and petroleum products, which further leads to general concerns about a global recession. Some more complex factors that do not offer unequivocal answers for the third quarter are the slow growth of the Chinese economy, as the main driver of global oil demand so far, then the OPEC+ announcement of production cuts, which nominally should put negative pressure on the freight markets if it were not for the Russian invasion. This conflict has created huge geopolitical tensions, triggered a wave of sanctions against Russia and caused a lot of disruption, inefficiency and uncertainty in the tanker market.

In the above-mentioned extremely complex environment, the Company generated HRK 372.9 million in operating revenues in the reporting period, attributed predominantly to revenues generated from sales.

In the same period, the Company reported HRK 252.2 million of operating costs. The majority of operating expenses are the material costs in the amount of HRK 151.3 million, followed by depreciation in the amount of HRK 42.2 million (of which HRK 5.5 million is the depreciation of dry-docking), employee costs in the amount of HRK 41.8 million, and other expenses in the amount of HRK 16.9 million.

Management report

UNAUDITED FINANCIAL STATEMENTS FOR THE THIRD QUARTER AND THE FIRST NINE MONTHS OF 2022

In the period ended 30th of September 2022, financial income amounted to HRK 209 thousand while financial expenses amounted to HRK 55.1 million.

In the reporting period, the company achieved a net income in the amount of HRK 65.8 million.

The Company's equity capital in the amount of HRK 436.7 million was allocated to 8.7 million of approved, issued and fully paid ordinary shares without nominal value.

As of September 30, 2022, the Company held 28,319 treasury shares, representing 0.3243% of the total number of shares. Reserves for treasury shares are formed from retained Company's earnings.

The table below shows some of the most significant financial report data for the observed period:

DESCRIPTION	Period st Jan – th Sep 1 30 2021	Period st Jan – th 1 30 Sep 2022
Total revenues	HRK 176.641.491	HRK 373.099.159
Operating revenues / Total revenues	99%	100%
Other revenues / Total revenues	1%	0%
International market / Total revenues	100%	100%
Domestic market / Total revenues	0%	0%
Material costs / Operating expenses	49%	60%
Employee costs / Operating expenses	20%	17%
Financial expenses / Total Expenses	11%	18%
Net margin	(11,51%)	17,65%
Net income	(HRK 20.212.473)	HRK 65.831.286
Operating profit (EBIT)	(HRK 442.398)	HRK 120.731.694

John Karavanić, CEO

QUICK OVERVIEW			(MR 25-59.999 DWT)
Key fleet figures		Changes in 2022
as at 01st October 2022 In Service:	2,694 vessels	as at 01st October 2022 Deliveries:	63 vessels
total dwt capacity: year to date growth	119,088,757 dwt 1.13%	total dwt capacity: as percentage of fleet:	2,933,615 dwt 2.36 %
Over 20yrs: total dwt capacity:	278 vessels 11,187,878 dwt	of which in Sep '22: of which in Q3 '22:	6 vessels 18 vessels
as percentage of fleet: On order: total dwt capacity: as percentage of fleet:	10.32 % 131 vessels 5,829,054 dwt 4.86 %	New orders: total dwt capacity: as percentage of fleet: of which in Sep '22: of which in Q3 '22:	23 vessels 1,095,700 dwt 0.86 % 0 vessels 2 vessels
		Scrapped:	31 vessels
Remaining deliveries	for 2022	total dwt capacity: as percentage of fleet: of which in Sep '22:	1,282,217 dwt 1.16 % 1 vessel
as at 01st October 2022		of which in Q3 '22:	3 tankera
Scheduled: total dwt capacity:	39 vessels 1,733,485 dwt
as percentage of fleet:	1.45 %
			Allied, October 2022

MR product tanker fleet

The product tanker fleet grew by 1.13% in the first nine months of 2022 which represents a slight increase compared to 2021 when it amounted to 0.91% and a slowdown compared to 2020 and 2019 when the growth was 3.3% and 3.6% respectively, creating a potential long-term positive impact on the product tanker market.

During the first nine months of 2022 a total of 31 MR tankers were sent to scrap while in 2021 a total of 59 tankers were scrapped and n 2020 a total of 19 tankers were scrapped.

Up to 30th September 2022, 63 deliveries were reported and another 39 new buildings are expected to be delivered by the end of the year.

Scrapping as a percentage of the fleet

*Data till end Sep '22

TNG TCE Net (USD/day, period average) OPEX (USD/day, period average) Clarksons 1-year TC Net - MR tanker shipowner expectaition (end of period)

	HRK 000				USD 000
SELECTED FINANCIALS	Q1 2022	Q2 2022	Q3 2022	Q1-Q3 2022	Q1 2022	Q2 2022	Q3 2022	Q1-Q3 2022
Vessel revenues	78,840		85,898 207,546	372,284	11,762	12,245	27,853	51,860
EBITDA	22,409		38,373 102,196	162,978	3,373	5,536	13,759	22,668
EBIT	9,546	24,805	86,380	120,731	1,473	3,629	11,650	16,752
Net profit	(1,454)	6,090	61,195	65,831	(159)	1,044	8,452	9,337

UNAUDITED FINANCIAL STATEMENTS FOR THE THIRD QUARTER AND THE FIRST NINE MONTHS OF 2022

Revenues for the first nine months of 2022 amounted to HRK 372.9 million (USD 52m), which represents a dramatic increase from the level achieved in the same period of 2021 when the vessel revenues amounted to HRK 175.4m (USD 27.9m).

Commissions and voyage associated costs amounted to HRK 123.0m (USD 16.9m) in the first nine months of 2022, while in the same period of 2021 they added up to HRK 61.2m (USD 9.7m) which was significantly lower.

Higher exposure to spot market results in achieving a nominally higher revenue, but at the same time has increased voyage-related costs due to the fact that the ship owner covers the voyage related expenses like bunkers, port expenses, agency fees and etc.

Operating expenditures of the fleet in the first nine months of 2022 amounted to HRK 81.7m (USD 11.6m), while in the same period in 2021 were recorded at HRK 69.4m (USD 11.0m). General and administrative expenses were recorded at HRK 4.6m (USD 0.7m), both of these categories of expenses were held at the similar level as in the same period of 2021.

Profit before interest, taxes, depreciation and amortization (EBITDA) in the first nine months of 2022 was HRK 163.0m (USD 22.7m) and was significantly increased compared to the same period last year when it amounted to HRK 38.3m (USD 6.1m).

Depreciation costs in the first nine months of 2022 came to HRK 42.2m (USD 5.9m). All the vessels in operation are depreciated over an estimated useful life span of 25 years on a linear basis to their residual value, which represents their scrap value on the international market.

Net interest expenses added up to HRK 16.3 mil. (USD 2.4m), while net foreign exchange loss were recorded at a significant level of HRK 38.6m (USD 5.0m).

Net foreign exchange losses mainly relate to unrealized exchange differences on US dollar credit liabilities of Tankerska Next Generation d.d. and have no impact on the cash flows in US dollars of Tankerska Next Generation d.d. and its subsidiaries abroad. Exchange rate differences primarily arise as a result of the recalculation of interest-bearing liabilities between affiliated companies that have different functional currencies.

During the first nine months of 2022 the Company recorded a net profit which corresponded to HRK 65.8m (USD 9.3m).

The average daily TCE for the fleet during the first nine months of 2022 was recorded at USD 21.361.

In the third quarter of 2022, the revenues reached HRK 207,8 million (USD 27.9m), which is a massive increase compared to revenues generated in the same period of 2021 when they amounted HRK 59.3m (USD 9.3m).

Commissions and voyage associated costs amounted to HRK 73.2m (USD 9.7m) in the third quarter of 2022, while in the same period of 2021 they added up to HRK 24.6m (USD 3.9m) which is significantly less.

Operating expenses of the fleet in the third quarter of 2022 amounted to HRK 30.8m (USD 4,2m), while in the same period of 2021 they added up to HRK 24.1m (USD 3.8m). General and administrative expenses corresponded to HRK 1.5m (USD 0.2m), both of these categories of expenses were held at the similar level as in the same period of 2021.

Profit before interest, taxes, depreciation and amortization (EBITDA) in the third quarter of 2022 amounts to HRK 102.2m (USD 13.8m) and was significantly boosted compared to the same period last year when it amounted to HRK 7.9m (USD 1.3m).

Depreciation costs in the third quarter of 2022 amounted to HRK 15.8m (USD 2.1m) and remain in accordance to the depreciation plan.

Net interest expenses in the third quarter amounted to HRK 6.8 mil. (USD 1m), while net foreign exchange loss were recorded at a significant level of HRK 18.4m (USD 2.2m).

mil. USD

During the third quarter of 2022 the Company recorded a net profit which amounted to HRK 61.2m (USD 8.5m).

The average daily TCE for the fleet during the third quarter of 2022 was recorded at USD 32.832 per day.

TNG's CURRENT FLEET

Currently TNG's fleet consists of six MR tankers (Velebit, Vinjerac, Vukovar, Zoilo, Dalmacija and Pag). The Group owns an operating fleet which consists of two conventional ice class tankers and four eco-design modern product tankers with a total capacity of around 300,000 dwt. As of September 30, 2022, the average age of the vessels in TNG's fleet was 8.46 years.

In the period from August of 2020 to the end of October 2021 the tankers from TNG's fleet completed their regular five year drydocking together with the installation of BWTS equipment.

CURRENT CHARTERING STRATEGY

Vinjerac

At the beginning of May 2020, a two-year time charter contract was secured for m/t Vinjerac. The tanker was under contract with the Charterer Clearlake Shipping ("Clearlake") at an agreed hire rate of USD 15,250 per day. The Charterer had the option to extend the contract for a third year with a freight rate of USD 15,750 per day which he did not utilize, and the tanker was re-delivered to the Company at the beginning of June 2022, after which it was employed on the "spot" market.

Pag

In January 2022, a short-term time charter contract was concluded for the vessel with Trafigura Maritime Logistics ("Trafigura") with an escalating freight rate (from USD 13,400 to USD 14,000). Upon the expiration of the contract, the charterer re-delivered the ship in the second half of May 2022, after which the ship was employed on the "spot" market.

Vessel	Year built	Type	Employment	Hire rate (USD/day)
Velebit	2011	ICE class MR product	SPOT market	SPOT (from Aug 2021)
Vinjerac	2011	ICE class MR product	SPOT market	SPOT (from Jun 2022)
Vukovar	2015	Eco MR product	EXXON	17,050 (until Aug 2023)
Zoilo	2015	Eco MR product	SPOT market	SPOT (from May 2021)
Dalmacija	2015	Eco MR product	HARTREE	16,000 (until Mar 2026)
Pag	2015	Eco MR product	SPOT market	SPOT (from May 2022)

Vukovar

During July 2020, the tanker performed a regular fiveyear drydock, after which it was delivered to Exxon Mobil ("Exxon") in August 2020 in accordance with a three-year time charter contract in the amount of USD 17,050 per day with the option to extend for another year at USD 18,000 per day.

Velebit

After a successful five-year drydock and installation of BWTS devices in Q2/2021, a short-term time charter contract was concluded with Trafigura Maritime Logistics ("Trafigura"). After the expiration of the contract, from the beginning of August 2021, the ship is employed on the "spot" market.

Zoilo

Upon completion of the time charter contract with the charterer CSSA Chartering Shipping Services SA ("CSSA") with a maximum duration of up to 12 months in the charterer's option with an escalating freight rate, from May 2021 the ship was transferred to the "spot" market.

Dalmacija

At the beginning of the year, MT Dalmacija was employed on the "spot" market until March 2, 2022. when delivered to charterer Hartree under a four-year fixed time shipping contract at USD 16,000 per day with an option to extend the contract for one year at the charterer's option at USD 19,000 per day.

OPERATIONAL DATA OF THE FLEET	Q3 2021.	Q1-Q3 2021.	FY 2021.	Q1 2022.	Q2 2022.	Q3 2022.	Q1-Q3 2022.
Time Charter Equivalent rates (USD/day)	10,088	11,558	11,763	13,549	17,463	32,832	21,361
Daily vessel operating expenses (USD/day)	6,909	6,744	6,897	6,828	6,832	7,563	7,077
Operating days	552	1,638	2,190	540	546	552	1,638
Revenue days	542	1,572	2,093	540	543	552	1,634
Fleet utilization (%)	98.2%	96.0%	95.6%	99.9%	99.4%	100.0%	99.8%

Tankerska Next Generation takes on the conservative approach of fixing its employment charters for its fleet, which was confirmed in the escalating market conditions when key time charters were concluded. At the time, the concluded time charter contracts enabled TNG to achieve results above the market average.

In the third quarter tankers were employed on time charter contracts for 184 days out of 552 revenue days, which equates to 33.3% of revenue days.

The average TCE net daily rate for Q3/2022 equates to USD 32,832; while the average daily vessel operating expenses (OPEX) in the same period amounted to USD 7,563 per vessel.

During Q3, we did not record any days without revenue on TNG fleet.

The Ballast Water Convention of the International Maritime Organization entered into force on September 8, 2017. The approved ballast water treatment system will have to be installed by the time it is necessary to renew the International Oil Pollution Prevention (IOPP) certificate, which for TNG means that the systems are installed on vessels following a five-year drydock cycle that started in mid 2020.

During 2020 and 2021, the BWTS was installed in five out of six tankers that had their regular five-year drydocks (m/t Zoilo, m/t Vukovar, m/t Pag, m/t Velebit; while m/t Dalmacija had the BWTS installed already as a newbuilding).

Based on the completed drydockings, we can conclude that the actual costs are in line with the plan. In other words, the average cost of delivery and installation of BWTS and the cost of docking amounted about USD 1,7 million per vessel, keeping in mind that the Eco tanker m/t Dalmacija was delivered from the shipyard as a newbuilding with an already implemented ballast water treatment system, therefore its cost of drydocking amounted to USD 0,77 million.

Financial position summary

Tankerska Next Generation concluded the first nine months of 2022 with the gearing ratio of 38%. The debt trend is in accordance with the loan repayment plans of TNG and regular decrease in indebtedness, and we expect that the degree of indebtedness will decrease in the future with the same dynamics.

Following its strategy of maintaining financial stability and liquidity, the Company, through the refinancing of credit obligations at the end of 2020 and the beginning of 2021, fully implemented the plan to refinance its credit liabilities maturing due in 2021 and 2022, thereby ensuring refinancing for the entire fleet on competitive terms for the upcoming five-year period.

During the third quarter, the Company refinanced part of the existing credit obligations, during which it withdrew additional funds in the amount of 9.3 million dollars. In the reporting period the Company closed all obligations regarding utilized revolving facilities approved by Tankerska plovidba.

FINANCIAL POSITION SUMMARY			HRK 000			USD 000
	30 Sep 2021	31 Dec 2021	31 Mar 2022	30 Jun 2022	30 Sep 2022	30 Sep 2021	31 Dec 2021	31 Mar 2022	30 Jun 2022	30 Sep 2022
Bank debt	502,060	536,385	509,467	519,127	573,490	78,123	80,737	74,853	72,468	73,827
Cash and cash equivalents	43,451	55,433	39,129	40,979	121,263	6,761	8,344	5,749	5,721	15,610
Net debt	458,609	480,952	470,338	478,148	452,227	71,362	72,393	69,104	66,747	58,217
Capital and reserves	592,009	548,290	567,085	617,782	751,836	92,120	82,530	83,320	86,242	96,787
Gearing ratio Net debt / (Capital and reserves + Net debt	44%	47%	45%	44%	38%	44%	47%	45%	44%	38%

Income statement and statement of other comprehensive income

	UNAUDITED FINANCIAL STATEMENTS FOR THE
THIRD QUARTER AND THE FIRST NINE MONTHS OF 2022

INCOME STATEMENT FOR PERIOD FROM JANUARY 1st to SEPTEMBER 30th, 2022		HRK 000			USD 000
Unaudited	Q3 2021	Q3 2022	Q1-Q3 2021	Q1-Q3 2022	Q3 2021	Q3 2022	Q1-Q3 2021	Q1-Q3 2022
Vessel revenues	59,257	207,546	175,101	372,284	9,324	27,853	27,860	51,860
Other revenues	4	240	341	606	-	32	54	86
Sales revenues	59,261	207,786	175,442	372,890	9,324	27,885	27,914	51,946
Commission and voyage related costs	(24,649)	(73,152)	(61,180)	(123,049)	(3,858)	(9,730)	(9,686)	(16,946)
Vessel operating expenses	(24,124)	(30,794)	(69,361)	(81,678)	(3,814)	(4,175)	(11,046)	(11,592)
General and administrative	(1,406)	(1,510)	(4,636)	(4,597)	(221)	(204)	(736)	(654)
Other expenses	(1,146)	(134)	(1,926)	(588)	(180)	(17)	(303)	(86)
Total operating expenses	(51,325)	(105,590)	(137,103)	(209,912)	(8,073)	(14,126)	(21,771)	(29,278)
EBITDA	7,936	102,196	38,339	162,978	1,251	13,759	6,143	22,668
Depreciation and amortization	(13,213)	(15,816)	(38,781)	(42,247)	(2,078)	(2,109)	(6,155)	(5,916)
Impairment	-	-	-	-	-	-	-	-
Operating profit (EBIT)	(5,277)	86,380	(442)	120,731	(827)	11,650	(12)	16,752
Net interest expenses	(3,253)	(6,813)	(13,133)	(16,257)	(519)	(995)	(2,084)	(2,399)
Net foreign exchange gains (losses)	(6,655)	(18,372)	(6,637)	(38,643)	(1,038)	(2,203)	(1,039)	(5,016)
Net income	(15,185)	61,195	(20,212)	65,831	(2,384)	8,452	(3,135)	9,337
Other comprehensive income	19,139	72,859	33,788	137,715	1,019	2,093	1,032	4,920
Total comprehensive income	3,954	134,054	13,576	203,546	(1,365)	10,545	(2,103)	14,257
Weighted average number of shares outstanding, basic & diluted (thou,)	8,705	8,705	8,706	8,705	8,705	8,705	8,706	8,705
Net income (loss) per share, basic & diluted	(1.74)	7.03	(2.32)	7.56	(0.27)	1	(0.36)	1.07

UNAUDITED FINANCIAL STATEMENTS FOR THE Balance THIRD QUARTER AND THE FIRST NINE MONTHS OF 2022 sheet

BALANCE SHEET		HRK 000			USD 000
AT THE DATE OF SEPTEMBER 30th, 2022 unaudited	31 Dec 2021	31 Mar 2022	30 Jun 2022	30 Sep 2022	31 Dec 2021	31 Mar 2022	30 Jun 2022	30 Sep 2022
Non-current Assets	1,002,146	1,013,725	1,053,300	1,125,782	150,845	148,942	147,038	144,926
Vessels	1,001,749	1,013,349	1,052,931	1,125,441	150,785	148,886	146,986	144,881
Tangible assets in preparation	-	-	0	0	-	-	-	-
Other non-current assets	397	376	369	341	60	56	52	45
Current Assets	125,380	112,020	123,852	231,982	18,872	16,458	17,290	29,863
Inventory	14,004	13,028	33,000	27,686	2,108	1,914	4,607	3,564
Accounts receivable	50,796	54,315	40,111	74,536	7,646	7,980	5,599	9,595
Cash and cash equivalents	55,433	39,129	40,979	121,263	8,344	5,749	5,721	15,610
Other current assets	5,147	5,548	9,762	8,497	774	815	1,363	1,094
Total Assets	1,127,526	1,125,745	1,177,152	1,357,764	169,717	165,400	164,328	174,789
Shareholders Equity	548,290	567,085	617,782	751,836	82,530	83,320	86,242	96,787
Share capital	436,667	436,667	436,667	436,667	67,500	67,500	67,500	67,500
Reserves	141,910	162,159	176,479	249,338	20,539	21,488	17,857	19,950
Retained earnings	(30,287)	(31,741)	4,636	65,831	(5,509)	(5,668)	885	9,337
Non-Current Liabilities	469,695	460,777	484,963	551,699	70,699	67,699	67,699	71,022
Interest-bearing loans	469,695	460,777	484,963	551,699	70,699	67,699	67,699	71,022
Current Liabilities	109,541	97,883	74,407	54,229	16,488	14,381	10,387	6,980
Interest-bearing loans	66,690	48,690	34,164	21,791	10,038	7,154	4,769	2,805
Accounts payable	26,857	16,285	27,270	17,474	4,043	2,393	3,807	2,249
Other current liabilities	15,994	32,908	12,973	14,964	2,407	4,834	1,811	1,926
Total liabilities and shareholders equity	1,127,526	1,125,745	1,177,152	1,357,764	169,717	165,400	164,328	174,789

		HRK 000			USD 000
CASH FLOW STATEMENT FOR Q1-Q3 2022 unaudited	FY 2021	Q1 2022	H1 2022	Q1-Q3 2022	FY 2021	Q1 2022	H1 2022	Q1-Q3 2022
Profit before tax	(86,989)	(1,454)	4,636	65,831	(13,208)	(159)	885	9,337
Amortisation	52,668	12,863	26,431	42,247	8,264	1,900	3,807	5.916
Changes in working capital	(14,561)	6,039	(10,533)	(42,921)	(1,982)	815	(1,587)	(5,903)
Other	76,156	7,875	23,660	46,093	10,692	1,065	2,873	5,161
Cash flow from operating activities	27,274	25,323	44,194	111,250	3,766	3,621	5,978	14,511
Cash inflows from investing activities	-	-	-	-	-	-	-
Cash outflows from investing activities	(31,669)	(2,170)	(2,176)	(2,188)	(5,026)	(331)	(332)	(334)
Cash flow from investing activities	(31,669)	(2,170)	(2,176)	(2,188)	(5,026)	(331)	(332)	(334)
Cash inflows from financing activities	551,573	-	-	471,455	87,392	-	-	61,061
Cash outflows from financing activities	(526,550)	(39,457)	(56,472)	(514,687)	(83,456)	(5,885)	(8,269)	(67,972)
Cash flow from financing activities	25,023	(39,457)	(56,472)	(43,232)	3,935	(5,885)	(8,269)	(6,911)
Net changes in cash	20,628	(16,304)	(14,454)	65,830	2,676	(2,595)	(2,623)	7,266
Cash and cash equivalents (beg, of period)	34,804	55,433	55,433	55,433	5,669	8,344	8,344	8,344
Cash and cash equivalents (end of period)	55,433)	39,129	40,979	121,263	8,344	5,749	5,721	15,610

THIRD QUARTER AND THE FIRST NINE MONTHS OF 2022 Statement of changes in equity

STATEMENT OF CHANGES IN EQUITY unaudited	Share capital	Retained Earnings	Other reserves and comprehensive income	Foreign exchange translation reserves	Total
For the period from 1 Oct to 31 Dec 2021	HRK 000	HRK 000	HRK 000	HRK 000	HRK 000
Balance at 1 October 2021	436,667	36,490	128,544	(9,692)	592,009
Net profit for the period	-	(66,777)	-	-	(66,777)
Change in capital	-	-	-	-	-
Change in other reserves	-	-	-	-	-
Changes in other comprehensive income	-	-	-	23,058	23,058
Balance at 31 December 2021	436,667	(30,287)	128,544	13,366	548,290
For the period from 1 Jan to 31 Mar 2022	HRK 000	HRK 000	HRK 000	HRK 000	HRK 000
Balance at 1 Jan 2022	436,667	(30,287)	128,544	13,366	548,290
Net profit for the period	-	(1,454)	-	-	(1,454)
Change in capital	-	-	-	-	-
Change in other reserves	-	-	-	-	-
Changes in other comprehensive income	-	-	-	20,249	20,249
Balance at 31 March 2022	436,667	(31,741)	128,544	33,615	567,085
For the period from 1 Apr to 30 Jun 2022	HRK 000	HRK 000	HRK 000	HRK 000	HRK 000
Balance at 1 Apr 2022	436,667	(31,741)	128,544	33,615	567,085
Net profit for the period	-	6,090	-	-	6,090
Change in capital	-	-	-	-	-
Change in other reserves	-	30,287	(30,287)	-	-
Changes in other comprehensive income	-	-	-	44,607	44,607
Balance at 30 Jun 2022	436,667	4,636	98,257	78,222	617,782
For the period from 1 Jul to 30 Sep 2022	HRK 000	HRK 000	HRK 000	HRK 000	HRK 000
Balance at 1 Jul 2022	436,667	4,636	98,257	78,222	617,782
Net profit for the period	-	61.195	-	-	61,195
Change in capital	-	-	-	-	-
Change in other reserves	-	-	-	-	-
Changes in other comprehensive income	-	-	-	72,859	72,859
Balance at 30 Sep 2022	436,667	65,831	98,257	151,081	751,836

STATEMENT OF CHANGES IN EQUITY unaudited	Share capital	Retained Earnings	Other reserves and comprehensive income	Foreign exchange translation reserves	Total
For the period from 1 Oct to 31 Dec 2021	USD 000	USD 000	USD 000	USD 000	USD 000
Balance at 1 October 2021	67,500	4,564	19,867	940	92,871
Net profit for the period	-	(10,073)	-	-	(10,073)
Change in capital	-	-	-	-	-
Change in other reserves	-	-	-	-	-
Changes in other comprehensive income	-	-	-	(268)	(268)
Balance at 31 December 2021	67,500	(5,509)	19,867	672	82,530
For the period from 1 Jan to 31 Mar 2022	USD 000	USD 000	USD 000	USD 000	USD 000
Balance at 1 Jan 2022	67,500	(5,509)	19,867	672	82,530
Net profit for the period	-	(159)	-	-	(159)
Change in capital	-	-	-	-	-
Change in other reserves	-	-	-	-	-
Changes in other comprehensive income	-	-	-	949	949
Balance at 31 March 2022	67,500	(5,668)	19,867	1,621	83,320
For the period from 1 Apr to 30 Jun 2022	USD 000	USD 000	USD 000	USD 000	USD 000
Balance at 1 Apr 2022	67,500	(5,668)	19,867	1,621	83,320
Net profit for the period	-	1,044	-	-	1,044
Change in capital	-	-	-	-	-
Change in other reserves	-	5,509	(5,509)	-	-
Changes in other comprehensive income	-	-	-	1,878	1,878
Balance at 30 Jun 2022	67,500	885	14,358	3,499	86,242
For the period from 1 Jul to 30 Sep 2022	USD 000	USD 000	USD 000	USD 000	USD 000
Balance at 1 Jul 2022	67,500	885	14,358	3,499	86,242
Net profit for the period	-	8,452	-	-	8,452
Change in capital	-	-	-	-	-
Change in other reserves	-	-	-	-	-
Changes in other comprehensive income	-	-	-	2,093	2,093
Balance at 30 Sep 2022	67,500	9,337	14,358	5,592	96,787

ANNOUNCEMENTS IN THE FIRST NINE MONTHS OF 2022

18 Feb 2022 Announcement of the Management and Supervisory Board

24 Feb 2022 Management and Supervisory Board meeting held

02 Mar 2022 Time charter employment secured for our ECO tanker Dalmacija

21 Apr 2022 Announcement of the Management and Supervisory Board

29 Apr 2022 Management and Supervisory Board meeting held

16 May 2022 Invitation to the General Assembly

27 June 2022 Notification about acquirement of shares

28 June 2022 Annual General Assembly held

22 July 2022 Announcement of the Management and Supervisory Board

29 July 2022 Management and Supervisory Board meeting held

14 Sep 2022 Notification about acquirement of shares

20 Sep 2022 Notification about acquirement of shares 23 Sep 2022 Notification on changes in the percentage of voting rights

23 Sep 2022 Notification about acquirement of shares 26 Sep 2022 Notification about acquirement of shares 26 Sep 2022 Notification on changes in the percentage of voting rights

27 Sep 2022 Notification about acquirement of shares 29 Sep 2022 Notification about acquirement of shares 29 Sep 2022 Notification on changes in the percentage of voting rights

30 Sep 2022 Notice acoording to Article 11, Paragraph 3 of the Act on Takeover of Joint Stock Companies

SHAREHOLDER STRUCTURE

Shareholders on 30 September 2022	No. of shares	Share (%)
Tankerska Plovidba	7,983,550	91.41%
Zagrebačka banka d.d.	120,000	1.37%
OTP banka d.d. / OTP indeksni fond	49,477	0.57%
Croatia banka d.d.	31,247	0.36%
Tankerska Next Generation	28,319	0.32%
Other shareholders	520,752	5.97%
Total	8,733,345	100.00%

MANAGEMENT AND SUPERVISORY BOARD

On September 30th, 2022, the sole member of the Management Board is Mr. John Karavanić. In 2022 there were no changes in Supervisory Board. The Supervisory Board consists of Mr. Ivica Pijaca, president, Mr. Mario Pavić, deputy president, and members Mr. Joško Miliša, Mr. Nikola Koščica and Mr. Dalibor Fell.

OVERVIEW OF RELATED PARTY TRANSACTIONS

TPNG SHARES

The share capital of the Company equals to HRK 436,667,250.00, divided into 8,733,345 ordinary dematerialized registered shares, without par value, and each share gives one vote at the General assembly of the Company.

The Company shares with the ticker TPNG are listed on the Zagreb Stock Exchange.

In first nine months of 2022, the TPNG share achieved turnover in the amount of HRK 287.5 million.

			HRK
TPNG at ZSE	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	Q3 2022	Q1 – Q3 2022
Volume (million)	4.1	1.5	5.9	17.2	25.5	279.5	287.5
Last price	54.00	38.80	47.20	43.00	41.80	76.80	76.80
Highest price	84.89	57.00	49.60	60.00	49.80	78.80	78.80
Lowest price	54.00	33.40	28.80	36.00	37.20	47.20	37.40
Average price	70.88	43.61	39.98	48.59	42.30	56.96	49.10

Price and volume of TPNG until the end of the third quarter of

TNG's risk management policy in connection to managing its financial assets can be summarized as follows:

Foreign exchange risk

TNG is exposed to the following currency risks: the transaction risk, which is the risk of a negative impact of fluctuations in foreign exchange rates against the Croatian kuna on TNG's cash flows from commercial activities; and the balance sheet risk, which is the risk that the net value of monetary assets on retranslation of kuna-denominated balances becomes lower as a result of changes in foreign exchange rates.

TNG operates internationally and is exposed to changes of US currency as significant amount of receivables and foreign revenues are stated in this currency. Current TNG policies do not include active hedging.

Interest rate risk

Interest rate risk is the risk of change in value of financial instruments due to changes in market interest rates. The risk of interest rate in cash flow is a risk that the interest expenditure on financial instruments will be variable during the period. As TNG has no significant interest-bearing assets, its operating income and cash flows from operations are not significantly exposed to fluctuations in market interest rates. TNG's interest rate risk arises from long-term borrowings. TNG is exposed to interest rate risk on its long-term borrowings that bear interest at variable

rates.

Arranging interest rate swaps with the key lenders provides for easing the risk of volatility in the variable interest rate, allowing the company, which operates in terms of pre-fixed income contracted to manage the profitability of operations fixing one of the major cost components.

Credit risk

Credit risk is the risk of failure by one party to meet commitments to the financial instruments, what could cause the financial loss to the other party. Maximum exposure to credit risk is expressed in the highest value of each of the financial asset in statement of financial position. Basic financial assets of TNG consist of cash and of account balance with banks, trade receivables and other receivables, and of investments. Credit risk in liquid funds is limited as the counterparty is often the bank that most international agencies assessed with high credit ratings.

Liquidity risk

The responsibility for managing liquidity risk rests with the Management Board which sets an appropriate liquidity risk management framework for the purpose of managing its short-term, medium-term and longterm funding and liquidity requirements. Liquidity risk, which is considered the risk of financing, is the risk of difficulties which the TNG may encounter in collecting funds to meet commitments associated with financial instruments. TNG has significant interest bearing noncurrent liabilities for loans with variable interest that expose TNG to the risk of cash flows. Company manages liquidity risk through maintaining adequate reserves and loan facilities, in parallel to continuously comparing planned and relished cash flow and maturity of receivables and liabilities.

Price risk

TNG's activities expose it to price risk associated with changes in the freight rate. The daily freight rate (the spot rate) measured in USD per day, has historically been very volatile. In addition, TNG trades its spot exposed vessels in different pools that reduces the sensitivity to freight rate volatility by economies of scale and optimization of the fleet's geographical position.

Operational risk

Due to the risks involved in seaborne transportation of oil products as well as due to very stringent requirements by the "oil majors", safety and environmental compliance are TNG's top operational priorities. The Fleet Manager will operate TNG's vessels in a way so as to ensure maximum protection of the safety and health of staff, the general public and the environment. TNG and the Fleet Manager actively manage the risks inherent in TNG's business and are committed to eliminating incidents that would threaten safety and the integrity of the vessels. Fleet Manager uses a risk management program that includes, among other, computer-aided risk analysis tools, maintenance and assessment programs, seafarers competence training program, and seafarers workshops.

Daily rates

Time charter rates are usually fixed during the term of the charter. Vessels operating on time charters for a certain period of time provide more predictable cash flows over that period of time and yield conservative profitability margins. Prevailing time charter rates fluctuate on a seasonal and year-toyear basis reflecting changes in spot charter rates, expectations about future spot charter rates and other factors. The degree of volatility in time charter rates is lower for longer-term time charters as opposed to shorter term time charters.

Employment strategy based on longer than one year time charter enables the mitigation of this type of risk.

TNG and its fleet manager are committed to the following standards, strategies and insurance:

International Standards Organization's ("ISO") 9001 for quality assurance,
ISO 14001 for environmental management systems,
ISO 50001 for energy management systems and Occupational Health and Safety
"OHSAS"18001 Safety Advisory Services
ISM Code International safety management code

Company strategy

The Company's strategy is to be a reliable, efficient and responsible provider of seaborne refined petroleum product transportation services and to manage and expand the Group in a manner that is believed will enable the Company to increase its distributable cash flow, enhance its ability to pay dividends and maximize value to its shareholders.

Business operations are based on the timely acquisition of tankers, ensuring efficient use of raised capital and debt minimization. Basically, fleet management is directed towards increasing cash flow and profitability through outsourcing majority of functions and services, maintaining a flexible and simple organizational structure unencumbered with additional overheads. This enables efficient assets and liabilities management and ensures a stable dividend return to shareholders.

Chartering strategy

Charterer's financial condition and reliability is an important factor in counterparty risk. TNG generally minimizes such risks by providing services to major energy corporations, large trading houses (including commodities traders), major crude and derivatives producers and other reputable entities with extenuating tradition in in seaborne transportation.

Insurance

The operation of any ocean-going vessel represents a potential risk of major losses and liabilities, death or injury of persons, as well as property damage caused by adverse weather conditions, mechanical failures, human error, war, terrorism, piracy and other circumstances or events. The transportation of oil is subject to the risk of pollution and to business interruptions due to political unrest, hostilities, labour strikes and boycotts. In addition, there is always an inherent possibility of marine disaster, including oil spills and other environmental mishaps, and the liabilities arising from owning and operating vessels in international trade.

As an integral part of operating the vessels, TNG maintains insurance with first class international insurance providers to protect against the majority of accident-related risks in connection with the TNG's marine operations.

The Company believes that the TNG's current insurance program, is adequate to protect TNG against the majority of accident-related risks involved in the conduct of its business and that an appropriate level of protection and indemnity against pollution liability and environmental damage is maintained. TNG's goal is to maintain an adequate insurance coverage required by its marine operations and to actively monitor any new regulations and threats that may require the TNG to revise its coverage.

INTERIM FINANCIAL STATEMENTS FOR PERIOD FROM 1ST JANUARY UNTIL 30TH SEPTEMBER 2022 (UNAUDITED)

I. Report of the Management Board on the Company's operations for the period from 1st January until 30 th September, 2022
II. Unaudited condensed quarterly financial statements:
- Balance Sheet per as at 30 th September, 2022
- Profit and Loss Account for the period from 1st January until 30 th September, 2022
- Cash Flow Statement for the period from 1st January until 30 th September, 2022
- Statement of Changes in Equity for the period from 1st January until 30 th September, 2022
- Notes to the Financial Statements
III. Statement of Responsibility for the Financial Statements

	(na m e a nd s ur na m e)
	Ce rtif ied a ud ito r: (na m e o f th e a ud it f irm )
	Au dit fir m :
	E- ma il a dd res s: tn g@ tn g. hr
f th e c on tac t p er so n)	Te lep ho ne : 02 (o nly 3/2 na 02 m -1 e a 32 nd s ur na m e o
	Co nta ct pe rso n: KA RA VA NIĆ JO HN
(Ye s/N o) (na Ta nk m er e o sk f th a p e b lov oo idb kk a d ee pin .d. g f irm ) No	Bo ok ke ep ing fir m : Ye s
Ye s




Re gis te red of fic e: MB :	Na m es of s ub sid iar ies (a cc or din g t o I FR S) :
no t a ud ite d/R D- au dit ed ) R N R D	Au dit ed : RN (R N-
on so lid ate d/K D- co ns oli da ted ) KN KD	Co ns oli da ted re po rt: KN (K N- no t c
	Nu (e m nd be of r o th f e e r m ep plo or ye tin es g 14 0
	W eb ad dr es s: w w w .tn g. hr
	E- ma il a dd res s: tn g@ tn g. hr
	St ree t a nd ho us e n um be r: Bo žid ar a P et ra no vić a 4
Za da r	Po stc od e a nd to wn : 23 00 0
ion d .d.	Na m e o f th e i ss ue r: Ta nk er sk a N ex t G en er at
	Ins titu co tio de n : 30 55 9
LE I: 74 78 00 00 Y0 4H B9 CI A8 83	Pe rso na nu l id m en be tifi r (O ca tio IB) n : 30 31 29 68 00 3
	En tity nu 's m reg be ist r ( MB rat ion S) : 11 00 46 75 3
Me m be Iss r S ue tat r's e c ho od me e: HR	Re gis tra tio n n um be r ( MB ): 04 26 68 38
na nc ia l s ta te m e nt s	Q ua rt e rl y fi
3.	Qu ar te r:
20 22	Ye ar :
01 .01 .20 22 to 30 .09 .20 22	Re po rti ng pe rio d:
ER 'S G EN ER AL D AT A	A nn ex 1 IS SU

066

OFF-BALANCE SHEET ITEMS

1,3 57 ,76 4,1 72	1,1 27 ,52 6,0 32	06 5	E) TO TA L A SS ET S (AD P 0 01 +0 02 +0 37 +0 64 )
10 8,0 9,6 40 10 ,29 ,53 6 5	34 5,0 ,61 38 8,2 ,20 94 3	06 06 4 3	D ) IV CA P RE SH PA AT ID BA EX NK PE AN NS ES D IN A ND HA AC CR UE D I NC OM E
0	0	06 2	9 O the r fi na nc ial as se ts ND
11 ,65 2,0 78 0	20 ,81 4,2 36 0	06 06 1 0	8 L 7 I nv oa es ns tm , d en ep ts os in its se , e cu tc. riti gi es ve n
0	0	05 9	pa rtic ipa tin g i nte res ts
0	0	05 8	pa rtic 6 L ipa oa ns tin g i , d ep nte os res its ts et c. to co mp an ies lin ke d b y v irtu e o f
			of pa 5 I rtic nv es ipa tm tin en g i t in nte ot res he ts r s ec uri tie s o f c om pa nie s l ink ed by vi rtu e o f
0	0	05 7	4 I nv es tm en ep ts in ho , e ldi ng s ( sh are s) of gs co mp an ies gr lin ke d b y v irtu e
0	0	05 6	gro 3 L up oa ns , d os its tc. to un de rta kin w ith in the ou p
0	0	05 5	2 I nv es tm en ts in oth er se cu riti es of un de rta kin gs w ith in the
11 ,65 2,0 78 0	20 ,81 4,2 36 0	05 05 4 3	III C 1 I UR nv RE es tm NT en FI ts NA in NC ho IAL ldi ng AS s ( SE sh TS are (A s) DP of 05 un 4 t de o 0 rta 62 kin ) gs w ith in the
33 7,2 86	53 ,77 4	05 2	6 O the r re ce iva ble s
38 ,80 0	34 ,75 4	05 1	5 R ec eiv ab les fro m go ve rnm en t a nd ot he r in sti tut ion s
74 ,53 80 5,6 ,94 38 1	50 ,79 21 6,0 ,30 65 8	05 04 0 9	4 R 3 C ec us eiv tom ab er les rec fro eiv m ab em les plo ye es an d m em be rs of the un de rta kin g
0	0	04 8	int ere sts ec m co mp an y v e o f p pa g
0	0	04 7	2 R 1 R ec eiv eiv ab ab les les fro fro m un de rta kin ies gs lin w ke ith d b in the irtu gr ou p art ici tin
74 ,99 2,6 65	50 ,90 5,9 01	04 6	II R EC EIV AB LE S ( AD P 0 47 to 05 2)
0	0	04 5	7 B iol og ica l a ss ets
0 0	0 0	04 04 4 3	6 F 5 A ixe dv an d a ce ss s f ets or he inv ld en for tor sa ies le
0	0	04 2	4 M erc ha nd ise
0	0	04 1	3 F ini sh ed go od s
,68 6,2 0	,00 3,6 0	04 0	2 W aw ork m in pr og res an s on su ma
27 27 ,68 6,2 25 25	14 14 ,00 3,6 06 06	03 03 9 8	I IN 1 R VE NT OR ate IES ria (A ls DP 03 d c 9 t o 0 45 ) ble s
22 3,9 41 ,50 3	12 0,3 42 ,03 7	03 7	C) CU RR EN T A SS ET S (AD P 0 38 +0 46 +0 53 +0 63 )
0	0	03 6	V D EF ER RE D T AX AS SE TS
0 0	0 0	03 03 5 4	4 O 3 C the us tom r re ce er iva rec ble eiv s ab les
0	0	03 3	int ere sts
			2 R ec eiv ab les fro m co mp an ies gs lin ke d b y v irtu gr e o f p p art ici pa tin g
0 0	0 0	03 03 2 1	IV RE 1 R CE ec eiv IVA ab BL les ES fro (A DP m un 03 de 2 t rta o 0 kin 35 ) w ith in the ou
0	0	03 0	1 0 Ot he r fi xe d f ina nc ial as se ts
0	0	02 9	9 O oa the ns r in ve ep stm os en ts , e ac gi co ve un ted fo r u sin g t he eq uit y m eth od
0 0	0 0	02 02 8 7	8 L 7 I nv es tm , d en ts in its se cu tc. riti es n
0	0	02 6	pa rtic 6 L ipa oa ns tin g i , d ep nte os res its ts et c. to co mp an ies lin ke d b y v irtu e o f
0	0	02 5	pa rtic ipa tin g i nte res ts
			vir tue 5 I nv of es pa tm rtic en ipa t in tin ot g i he nte r s res ec uri ts tie s o f c om pa nie s l ink ed by vi rtu e o f
0	0	02 4	4. Inv es tm en ts in ho ldi ng s ( sh are s) of co mp an ies lin ke d b y
0	0	02 3	3 L oa ns , d ep os its , e tc. to un de rta kin gs w ith in the gs gr ou p
0 0	0 0	02 02 2 1	2 I 1 I nv nv es es tm tm en en ts ts in in oth ho ldi er ng se s ( cu sh riti are es of s) un of un de de rta rta kin kin gs w ith w in ith the in the
0	0	02 0	III FIX ED FI NA NC IAL AS SE TS (A DP 02 1 t o 0 30 )
0	0	01 9	9 I nv es tm en t p rop ert y
0 0	0 0	01 01 8 7	8 O 7 T an the gib r ta le ng as ibl se e a ts ss in ets pre pa rat ion
0	0	01 6	6 A dv an ce s f or the pu rch as e o f ta ng ibl e a ss ets
0	0	01 5	5 B iol og ica l a ss ets
1,1 25 ,78 2,3 73 0	1,0 02 ,14 5,7 92 0	01 01 4 3	4 T 3 P oo lan ls, t a w nd ork eq ing uip in me ve nt nto ry a nd tra ns po rta tio n a ss ets
0	0	01 2	2 B uil din gs
1,1 ,78 2,3 0	1,0 ,14 5,7 0	01 1	1 L an d S ( 9)
25 73 0	02 92 0	01 00 0 9	II T 6 O AN the GI BL r in E A tan SS gib ET le as AD se P 0 ts 11 to 01
0	0	00 8	5 I nta ng ibl e a ss ets in pr ep ara tio n
0	0	00 00 7	4 A 3 G dv oo an dw ce ill s f or the pu rch as e o f in tan gib le as se ts
0 0	0 0	00 6 5	oth er rig hts
0	0	00 4	2 C 1 R on es ce ea ss rch ion an s, d d pa ev ten elo ts, pm lic en en t ce s, tra de ma rks , s oft wa re an d
0	0	00 3	I IN TA NG IBL E A SS ET S ( AD P 0 04 to 00 9)
1,1 25 ,78 2,3 73	1,0 02 ,14 5,7 92	00 2	B) FIX ED AS SE TS (AD P 0 03 +0 10 +0 20 +0 31 +0 36 )
0	0	00 1	A) R EC EIV AB LE S F OR S UB SC RIB ED CA PIT AL U NP AI D
4	3	2	1
da At te th of pe e r the rio ep cu d or tin rre g nt	La bu st pre sin da es ce y o din s y f th ea g e r	AD cod P e	Ite m
			Su bm itte r: Ta nk er sk a Ne xt G en er at io n d .d
in HR K		9.2 02 2	ba la nc e as a t 3 0.0
		EE T	BA LA N C E SH

0	0	12 6	G) O FF -B AL AN CE S HE ET IT EM S
1,3 57 ,76 4, 17 2	1,1 27 ,52 6,0 32	12 5	F) TO TA L – L IA BI LIT IES (A DP 06 7+ 09 0+ 09 7+ 10 9+ 12 4)
8,9 54 ,52 9	10 ,86 3,5 61	12 4	E) AC CR UA LS A ND D EF ER RE D IN CO ME
44 ,89 2	61 ,68 7	12 3	1 4 O the r s ho a rt-t er ing m lia bil m itie s as se r s
53 ,77 0 4	53 ,77 0 4	12 12 2 1	1 1 3 L 2 L iab iab ilit ilit ies ies a ris ris ing fro fro m fix the ed s ha re ts in the he ld re fo su lt ale
71 ,78 9	55 ,31 8	12 0	1 1 T ax es , c on trib uti on s a nd s im ila r li ab ilit ies
5,8 34 ,63 3	4,9 46 ,12 5	11 9	1 0 L iab ilit ies to e m plo ye es
0	0	11 8	9 L iab ilit ies fo r s up ec ur itie s
12 ,70 0, 15 8 0	21 ,73 4,0 54 0	11 11 7 6	8 L 7 L iab iab ilit ilit ies ies to fo s r a dv pli an er ce s pa ym en ts
21 ,79 0,7 19	66 ,69 0,0 74	11 5	6 L iab ilit ies to ba nk s a nd ot he r fi na nc ial in sti tut ion s
0	0	11 4	5 L iab ilit ies fo r lo an s, de po sit s e tc.
0	0	11 3	of pa rtic ipa tin g i nte res ts
0	0	11 2	4 L 3 L iab iab ilit ilit ies ies fo to co r lo an m pa s, nie de po s l sit ink s e ed by tc. of vi co rtu e o m pa f p nie art s l ici pa ink tin ed g by vi rtu e
			gr ou p
0	0	11 1	2 L iab ilit ies fo r lo an s, de po sit s, etc . o f u nd ert ak ing s w ith in the
4,7 78 ,47 2	5, 13 6,5 08	11 0	1 L iab ilit ies to u nd ert ak ing s w ith in the g ro up
45 ,27 4,4 37	98 ,67 7,5 40	10 9	D) S HO RT rre -T ER ax M LIA BI ity LIT IES (A DP 1 10 to 12 3)
0 0	0 0	10 10 8 7	1 1 0 O 1 D the efe r lo d t ng -te lia rm bil lia bil itie s
0	0	10 6	9 L iab ilit ies fo r s ec ur itie s
0	0	10 5	8 L iab ilit ies to s up pli er s
0	0	10 4	7 L iab ilit ies fo r a dv an ce pa ym en ts
55 1,6 99 ,11 0	40 9,9 03 ,16 8	10 3	6 L iab ilit ies to ba nk s a nd ot he r fi na nc ial in sti tut ion s
0	0	10 2	5 L iab ilit ies fo r lo an s, de po sit s e tc.
0	0	10 1	of pa 4 L rtic iab ipa ilit tin ies g i fo nte r lo res an ts s, de po sit s e tc. of co m pa nie s l ink ed by vi rtu e
0	0	10 0	3 L iab ilit ies to co m pa nie s l ink ed by vi rtu e o f p art ici pa tin g
0	59 ,79 1,9 32	09 9	gr ou p
			2 L iab ilit ies fo r lo an s, de po sit s, etc . o f u nd ert ak ing s w ith in the
0	0	09 8	1 L iab ilit ies to u nd ert ak ing s w ith in the g ro up
55 1,6 99 ,11 0 0	46 9,6 95 ,10 0 0	09 09 7 6	C) L 6 O ON the G- r p TE rov RM isi L on IA BI s LIT IES (A DP 09 8 t o 10 8)
0	0	09 5	5 P rov isi on s f or wa rra nty ob lig ati on s
0	0	09 4	4 P rov isi on s f or re ne wa l o f n atu ra l re so urc es
0	0	09 3	3 P rov isi on s f or on go ing le ga l c as es
0	0	09 2	2 P rov isi on s f or tax lia bil itie s
0	0	09 1	ob lig ati on s pe s,
			1 P rov isi on s f or ns ion te rm ina tio n b en efi ts an d s im ila r
0	0	09 0	B) P RO VI SI ON (N S (A DP 09 1 t o 0 96 ) G)
0 0	86 ,98 8,8 24 0	08 08 9 8	VI II M 2 L IN os OR s f ITY or the b ON us -C ine ON ss TR ye OL ar LIN IN TE RE ST
65 ,83 1,2 86	0	08 7	1 P rof it f or the b us ine ss ye ar
65 ,83 1,2 86	-8 6,9 88 ,82 4	08 6	VI I P RO FIT O R LO SS FO R TH E BU SI NE SS Y EA R (A DP 08 7- 08 8)
0	0	08 5	2 L os s b ro ug ht fo rw ar d
0	56 ,70 1,8 83	08 4	1 R eta ine d p rof it
0	56 ,70 1,8 83	08 3	08 VI RE 5) TA IN ED P RO FIT O R LO SS B RO UG HT FO RW AR D (A DP 08 4-
1,0 ,27	,36 5,2		op er ati on s ( co ns oli da tio n)
15 80 5	13 96	08 2	5 E xc ha ng e d iffe re nc es a ris ing fro m the tra ns lat ion of fo re ign
0	0	08 1	4 O the ge r fa ir v alu e r es erv es op
0 0	0 0	08 07 0 9	3 H 2 C ed as h f of low a he ne dg t in e - ve ef stm fec en tiv t in e p a ort fo ion re ign er ati on - e ffe cti ve
			inc om e ( i.e . a va ila ble fo r s ale )
0	0	07 8	1 F ina nc ial as se ts at fai r v alu e t hro ug h o the r c om pr eh en siv e
15 1,0 80 ,27 5	13 ,36 5,2 96	07 7	V FA IR VA LU E RE SE RV ES A ND O TH ER (A DP 07 8 t o 0 82 )
,00 0,0 0	,00 0,0 0	07 6	IV RE VA LU r re AT se IO rve N RE SE RV ES
55 00 0	55 00 0	07 07 5 4	5 O 4 S tat the uto ry res erv s es
-1 ,64 1,6 50	-1 ,64 1,6 50	07 3	3 T rea su ry sh ar es a nd ho ldi ng s ( de du cti ble ite m)
1,6 41 ,65 0	1,6 41 ,65 0	07 2	2 R es erv es fo r tr ea su ry sh ar es
5, 11 8,2 50	5, 11 8,2 50	07 1	1 L eg al res erv es
60 38 ,11 ,13 8,2 9,0 50 35	60 68 ,11 ,42 8,2 5,9 50 76	07 06 0 9	III II C RE AP SE ITA RV L R ES ES F ER RO VE M PR OF IT (A DP 07 1+ 07 2- 07 3+ 07 4+ 07 5)
43 6,6 67 ,25 0	43 6,6 67 ,25 0	06 8	I IN ITI AL (S UB SC RI BE S D) C AP ITA L
75 1,8 36 ,09 6	54 8,2 89 ,83 1	06 7	A) C AP ITA L A ND R ES ER VE S (A DP 06 8 t o
4	3	2	LIA BI LIT IES
			1
da te of pe th rio e c d ur re nt	La bu pr st sin ec da es ed y o s y ing f t ea he r	AD co de P	Ite m
At th e r ep or tin g

0 0	0 0	0 0	0 0	07 07 7 6	2 A 1 A ttr ttr ibu ibu tab tab le t le t o m o o wn ino ers rity of (n th on e p -co are ntr nt olli ng) int ere st
0	0	0	0	07 5	XIX PR OF IT O R L OS S F OR TH E P ER IOD (AD P 0 76 +0 77 )
0	0	ate me nts ) 0	an nua l fin an cia l st 0	nso lida 07 4 ted	AP 2 PE Los ND s fo IX t o t r th he e p P& eri L (t od o b (AD e f P 0 ille 71 d in -06 by 8) un de rta kin gs tha t d raw up co
0	0	0	0	07 3	1 Pro fit f or the pe riod (A DP 06 8-0 71 )
0 0	0 0	0 0	0 0	07 07 2 1	XV XV III P II IN CO RO FIT ME OR TA LO X (AD SS P 0 FO 58 R T +0 HE 65 PE ) RIO D (AD P 0 68 -07 1)
0	0	0	0	07 0	2 Pre -tax los s ( AD P 0 68 )
0	0	0	0	06 9	1 Pre -tax pr ofit (A DP 06 8) (AD 55 )
0	0	ion s) 0	co nti nue d o pe rat 0	IFR S w 06 ith 8 dis	XV TO I P TA RE L O -TA PE X P RA TIO RO FIT NS OR (to be LO fil SS led in P 0 on ly b -+0 y u 62 nde rta kin gs su bje ct to
0	0	0	0	06 7	2 Dis con tinu ed op era tion s lo ss for the pe riod (A DP 06 5-0 62 )
0 0	0 0	0 0	0 0	06 06 6 5	XV 1 IN Dis CO con ME tinu TA X O ed op F D era ISC tion ON s p TIN rof UE it fo D O r th PE e p RA eri TIO od (AD P 0 62 -06 5)
0	0	0	0	06 4	2 Pre -tax los s o n d isc on tinu ed op era tion s NS
0	0	0	0	06 3	1 Pre -tax pr ofit fro m d isc on tinu ed op era tion s
0	0	0	0	06 2	XIV (AD PR P 0 63 E-T -06 AX 4) PR OF IT O R L OS S O F D ISC ON TIN UE D O PE RA TIO NS
		d o pe rat ion s)	w ith dis co nti nue	to IFR S o nly	DIS CO NT INU ED OP ER AT ION S ( to be fille d in by un de rta kin gs su bje ct
0	0	-15 ,18 5,8 28	-20 ,21 2,4 73	06 1	2 Los s fo r th e p eri od (AD P 0 59 -05 5)
61 ,19 4,9 20	65 ,83 1,2 86	0	0	06 0	1 Pro fit f or the pe riod (A DP 05 5-0 59 )
61 ,19 4,9 20	65 ,83 1,2 86	-15 ,18 5,8 28	-20 ,21 2,4 73	05 9	XII I P RO FIT OR LO SS FO R T HE PE RIO D ( AD P 0 55 -05 9)
0 0	0 0	-15 ,18 5,8 28 0	-20 ,21 2,4 73 0	05 05 8 7	XII 2 IN Pr CO e-t ME ax TA los X s ( AD P 0 54 -05 3)
61 ,19 4,9 20	65 ,83 1,2 86	0	0	05 6	1 Pr e-t ax pro fit ( AD P 0 53 -05 4)
61 ,19 4,9 20	65 ,83 1,2 86	-15 ,18 5,8 28	-20 ,21 2,4 73	05 5	XI PR E-T AX PR OF IT O R L OS S (AD P 0 53 -05 4)
146 ,74 4,5 08	30 7,2 67 ,87 3	75 ,49 8,1 78	196 ,85 3,9 64	05 4	X TO TA L E XP EN DIT UR E (AD P 0 07 +0 41 +0 51 + 0 52 )
20 7,9 39 ,42 8	37 3,0 99 ,15 9	60 ,31 2,3 50	176 ,64 1,4 91	05 3	IX TO TA L IN CO ME (AD P 0 01 +0 30 +0 49 +0 50 )
0	0	0	0	05 2	VII PA I S RT HA ICI RE PA IN TIN LO G I SS NT OF ER ES JO T INT VE NT UR ES
0	0	0	0	05 1	VII S HA RE IN LO SS OF CO MP AN IES LI NK ED BY VI RT UE OF
0	0	0	0	05 0	VI SH AR E IN PR OF IT F RO M J OIN T V EN TU RE S
0	0	0	0	04 9	V PA RT SH ICI AR PA E IN TIN PR G I OF NT IT F ER ES RO TS M U ND ER TA KIN GS LI NK ED BY VR ITU E O F
0	0	0	0	04 8	7 O the r fin an cia l ex pe nse s
0	0	0	0	04 7	6 V alu e a dju stm ent s o f fin an cia l as se ts ( net )
0	0	0	0	04 6	5 U nre alis ed los se s ( exp en se s) fro m f ina nci al a ss ets
18 6,3 ,37 46 2,5 ,58 60	38 15 ,64 ,49 3,4 3,1 65	7,6 4,0 87 90 ,36 ,27 7	12 7,6 ,96 69 7,8 ,74 8	04 04 5	4 E 3 In xch ter est an ge ex pe rate nse dif s a fer en nd ces sim an ilar d o ex the pe nse r ex pe nse s
5	95	1	95	4	wit h u nde rta kin gs wit hin the gr ou p s
0	0	0	0	04 3	2 E xch an ge rate dif fer en ces an d o the r ex pe nse s fr om op era tion s
61 9,4 72	97 2,7 43	154 ,50 2	172 ,08 1	04 2	the gr ou ere p xpe nse s a ex pe nse s w ngs
25 ,33 8,6 17	55 ,10 9,4 03	11 ,93 2,1 40	20 ,80 9,7 24	04 1	1 IV FIN Int AN CIA st e L E XP EN SE S nd (AD sim P 0 ilar 42 to 0 48 ) ith und ert aki wi thin
0	0	0	0	04 0	1 0 O the r fin an cia l in com e
0	0	0	0	03 9	9 U nre alis ed ga ins (in com e) f rom fin an cia l as se ts
0	0	0	0	03 8	8 E xch an ge rate dif fer en ces an d o the r fin an cia l in com e
152 ,82 2 0	20 8,9 95 0	2,8 12 0	6,9 81 0	03 03 7 6	7 O 6 In the com r in e fr ter om est ot inc he om r lo e ng -te rm fin an cia l in ves tm ent s a nd loa ns
0	0	1,0 32 ,66 8	1,0 32 ,66 8	03 5	op era tion s w ith und ert aki ngs wi thin the gr ou p
					5 E gr xch an ge rate dif fer en ces an d o the r fin an cia l in com e fr om
0	0	0	0	03 4	the 4 O ou the p r in ter est inc om e fr om op era tion s w ith und ert aki ngs wi thin
0	0	0	0	03 3	gra nte d to un de rta kin gs wit hin the gr ou p
					3 In com e fr om ot he r lo ng -te g in rm fin an cia l in ves tm ent an d lo an s
0	0	0	0	03 2	link 2 In ed com by virt e fr ue om of p inv art est icip me atin nts in ter ho est ldin s gs (sh are s) of c om pa nie s
				03	wit hin the gr ou p
0	0	0	0	1	1 In com e fr om inv est me nts in ho ldin gs (sh are s) of u nde rta kin gs
152 20 ,82 ,98 2	20 26 8,9 8,5 95	1,0 35 52 ,48 ,77 0	1,0 83 39 2,5 ,64 9	03 02 0	8 III F INA he NC r o IAL pe IN rat CO ing ME ex pe (AD nse P 0 31 to 0 40 )
9 0	67 0	7 0	29 0	02 9 8	Ot f) O the r p rov isio ns s
0	0	0	0	02 7	e) Pro vis ion s fo r w arr an ty o bli ga tion s
0	0	0	0	02 6	d) Pro vis ion s fo r re ne wa l of na tura l re sou rce s
0	0	0	0	02 5	c) P rov isio ns for ong oin g le ga l ca ses
0	0	0	0	02 4	b) Pro vis ion s fo r p r ta x li ab iliti es
0 0	0 0	0 0	0 0	02 02 3 2	7 Pr a) ovi Pro sio vis ns ion (AD s fo P 0 23 en sio to 0 ns, 28 te ) rm ina tion be ne fits an d s im ilar
0	0	0	0	02 1	b) cur ren t as set s o the r th an fina nci al a sse ts
0	0	0	0	02 0	a) fixe d a sse ts o the r th an fina nci al a sse ts
0	0	0	0	01 9	6 Va lue ad jus tm ent s ( AD P 0 20 +0 21 )
15 6,4 ,81 90 6,5 ,74 72 5	42 16 ,50 ,24 0,8 7,4 36 11	13 4,4 ,23 21 8,3 ,01 09 2	38 14 ,72 ,85 9,2 7,5 53 90	01 01 8 7	5 4 Ot De he pre r co cia sts tion
67 ,57 7	193 ,10 3	54 ,71 1	150 ,40 0	01 6	c) C on trib utio ns on sal ari es
132 ,97 6	37 5,5 90	103 ,78 5	31 0,9 38	01 5	b) Tax an d c on trib utio ns fro m sal ary co sts
15 ,23 2,4 37	41 ,24 0,4 40	12 ,50 8,8 79	35 ,49 7,7 13	01 4	a) Ne t sa lar ies an d w ag es
15 ,43 2,9 90	41 ,80 9,1 33	12 ,66 7,3 75	35 ,95 9,0 51	01 3	3 St aff cos ts ( AD P 0 14 to 0 16)
34 ,36 5,9 01	66 ,95 6,6 53	15 ,25 5,7 97	41 ,24 0,6 29	01 01 2	c) b) Oth Co sts er of ext go ern od al c s s ost old s
49 ,27 8,6 94 0	84 ,37 5,8 70 0	17 ,93 0,7 68 0	44 ,42 5,1 88 0	01 1 0	a) Co sts of raw m ate ria ls a nd con sum ab les
83 ,64 4,5 95	15 1,3 32 ,52 3	33 ,18 6,5 65	85 ,66 5,8 17	00 9	2 Ma ter ial cos ts ( AD P 0 10 to 0 12)
0	0	0	0	00 8	1 Ch an ge s in inv ent ori es of w ork in pro gre ss an d fi nis hed go od s
12 1,4 05 ,89 1	25 2,1 58 ,47 0	63 ,56 6,0 38	176 ,04 4,2 40	00 7	08 II O +0 PE 09 RA +0 TIN 13+ G E 01 XP 7+ EN 01 SE 8+ S 01 (AD 9+ 02 P 2+ 02 9)
24 0,2 91	60 5,9 92	19 ,98 3	50 1,1 57	00 6	5 Ot he r o pe rat ing inc om e ( ou tsid e th e g rou p)
0	0	0	0	00 5	4 Ot he r o pe rat ing inc om e w ith und ert aki ngs wi thin the gr ou p
20 7,5 46 ,31 0	37 2,2 84 ,17 0	59 ,25 6,8 0	175 ,10 0,6 0	00 00 4	3 2 Inc Inc om om e fr e fr om om the sa les us (o e o uts f ow ide n p gr rod ou p) uct s, g oo ds an d s erv ice s
5 0	2 0	87 0	85 0	00 3 2	1 Inc om e fr om sa les wi th u nde rta kin gs wit hin the gr ou p
20 7,7 86 ,60 6	37 2,8 90 ,16 4	59 ,27 6,8 70	175 ,60 1,8 42	00 1	I O PE RA TIN G I NC OM E (AD P 0 02 to 0 06 )
Qu art 6	mu 5 ve	Qu art 4	mu 3 ve	2	1
nt pe rio er	Cu lati Cu rre	the pr evi ou s y er ear	Sam Cu e p eri lati od of	cod AD e	Ite m
d				P	Su bm itte r: Ta nk ers ka Ne xt Ge ne rat ion d. d.
in HR K
				30 .09 .20 22	for th e p eri od 01 .01 .20 22 to
			SS	O R LO	ST AT EM EN T OF P RO FIT

0	0	0	0	10 1	2 A ttr ibu ta ble to m ino rit y ( no n- co nt ro llin g) in te re st
0	0	0	0	10 0	1 A ttr ibu ta ble to ow ne rs of th e pa re nt
0	0	0	0	09 9	10 VI C 0+ OM 10 PR 1) EH EN SI VE IN CO ME O R LO SS FO R TH E P ER IO D (A DP
	em en ts )	c on so lid at ed st at	kin gs th at d ra w up	in by u nd er ta	AP PE ND IX to th e S ta te m en t o n c om pr eh en siv e inc om e ( to b e f ille d
13 4,0 54 ,13 7	20 3,5 46 ,26 5	3,9 53 ,48 0	13 ,57 5,3 23	09 8	07 VI C 8+ OM 09 7) PR EH EN SI VE IN CO ME O R LO SS FO R TH E P ER IO D (A DP
72 ,85 9,2 17	13 7,7 14 ,97 9	19 ,13 9,3 08	33 ,78 7,7 96	09 7	08 V NE 6 - T 0 OT 96 ) HE R CO MP RE HE NS IV E I NC OM E O R LO SS (A DP 0 80 +0 87 -
0	0	0	0	09 6	los 9 s Inc om e t ax re lat ing to ite m s t ha t m ay b e re cla ss ifie d t o pr of it o r
0	0	0	0	09 5	8 O th er ite m s t ha t m ay b e re cla ss ifie d t o pr of it o r lo ss
0	0	0	0	09 4	7 C ha ng es in fa ir v al ue of fo rw ar d e lem en ts of fo rw ar d c on tra cts
0	0	0	0	09 3	6 C ha ng es in fa ir v al ue of th e t im e v al ue of o pti on
0	0	0	0	09 2	by vi 5 S rtu ha e o re f p in ar ot tic he ipa r c tin om g pr int eh er en es siv ts e inc om e/ los s o f c om pa nie s lin ke d
0	0	0	0	09 1	fo re 4 ign Pr of o it o pe r lo rat ion ss a ris ing fr om ef fe cti ve h ed ge of a ne t in ve st m en t in a
0	0	0	0	09 0	3 Pr of it o r lo ss a ris ing fr om ef fe cti ve ca sh flo w he dg ing
0	0	0	0	08 9	se 2 Ga cu ins riti es o at r lo fa ss ir v es al fr ue om th s ro ub ug se h o qu th en er t m co ea m pr su eh re en m en siv t o e f d inc eb om t e
72 ,85 9,2 17	13 7,7 14 ,97 9	19 ,13 9,3 08	33 ,78 7,7 96	08 8	1 E xc ha ng e rat e d iffe re nc es fr om tr an sla tio n o f fo re ign o pe rat ion s
72 ,85 9,2 17	13 7,7 14 ,97 9	19 ,13 9,3 08	33 ,78 7,7 96	08 7	IV Ite m s t ha t m ay b e re cla ss ifie d t o pr of it o r lo ss (A DP 0 88 to 0 95 )
0	0	0	0	08 6	6 Inc om e t ax re lat ing to ite m s t ha t w ill no t b e re cla ss ifie d
0	0	0	0	08 5	5 O th er ite m s t ha t w ill no t b e re cla ss ifie d
0	0	0	0	08 4	4 A ctu ar ial g ai ns /lo ss es o n t he d ef ine d be ne fit ob lig at ion
0	0	0	0	08 3	sta 3 Fa te ir v m en al ue t o ch f p rof an it o ge s o r lo f fi ss na , a nc ttr ibu ial lia ta ble bil to itie ch s a an t fa ge ir v s al in ue th th ei r c ro ug re dit h ri sk
0	0	0	0	08 2	ins 2 Ga tru ins m en o r lo ts at ss fa es ir v fr al om ue s th ub ro se ug qu h o en th t m er co ea su m pr re eh m en en siv t o f e e inc qu om ity e
0	0	0	0	08 1	as 1 C se ha ts ng es in re va lua tio n r es er ve s o f fi xe d t an gib le an d int an gib le
0	0	0	0	08 0	08 III Ite 5) m s t ha t w ill no t b e re cla ss ifie d t o pr of it o r l os s ( AD P 08 1 t o
72 ,85 9,2 17	13 7,7 14 ,97 9	19 ,13 9,3 08	33 ,78 7,7 96	07 9	II O TH (A DP ER C 8 0+ OM 8 PR 7) EH EN SI VE IN CO ME /L OS S BE FO RE T AX
61 ,19 4,9 20	65 ,83 1,2 86	-1 5, 18 5,8 28	-2 0,2 12 ,47 3	07 8	I P RO FIT O R LO SS FO R TH E P ER IO D
			s ub je ct to IF RS )	nd er ta kin gs	ST AT EM EN T OF O TH ER C OM PR HE NS IV E I NC OM E ( to b e f ille d in by u
6	5	4	3	2	1
Qu ar te r	Cu m ula tiv e	Qu ar te r	Cu m ula tiv e	co de	Ite m
p er iod	Cu rre nt	he p re vio us ye ar	Sa m e pe rio d o f t	AD P
in HR K					Su bm itt er : Ta nk er sk a Ne xt G en er at io n d. d.
				3 0. 09 .2 02 2	fo r t he p er io d 01 .0 1. 20 22 to
			S	O R L O S	S TA T E M E N T O F P R O FI T

Statement of cash flow

In To G cq dju ota nre the as as as as the as as as the as as as the as ivid as as ha re- ET ET ta om ov ain fin the the ep 03 ta ta ts cre al os nta ain ale flo flo cre ter ter flo T I T C cre ad SH uis res res as bo h f h f ch tax itte h p h p h p h p h r h r h r h p h p h p h r h r h r ng D stm CA r c l c r c r c r c CA ali l c en isi l c l c an se rec (AD 4+ s a NC r in r a es es e t as an ng s a e i ro as low A nts rro w w as ju w ec ec ec itio ec ec ec es AS t re t p pr as as as as as se ay ay ay ay ay ay ay as ds on r: T as as s cia en 04 t e t a SH SH ax ND m e o dju stm iat n i fro fro e o ge nd ibl fro RE wi e o eip eip eip eip eip eip cre in nd aid P 0 me me me me me me me ofi h p h r h r h p n o h r s d e H F h r re in ce h p h p pa xp nd an ts 6+ l in ion nit op FL ng FL ra lo CA e a AS th stm lo m m r d t m r d ec ts ts ts ec ts ts ts as r d ec cr en ec ce ive 01 ay ay f a xc nts nts nts nts nts nts nts LO en di ke ay ay (AD 04 ial er s a str ss id te e w ss OW fin OW ec fro fro fro fro fro fro inv ec ea ss op E O eip eip e o ec t o SH ha me eip me su ive d eip +0 en se rs me (s fo fo fo fo me fo fo fo vid W at es 7) um dif es rea ets nd an rea P 0 er m m m m m m rea se es f fi ng or ts ts d 02 EQ r d s ka FR ts FR FR ion ts R D ts fro nts r th r fi r d r th nts bs r lo r th r th ub en fro fer nts nts at de na the the cin kin or cre en rep sa sa tm fro fro se Ne e r se ) for 03 ec se fro na ivid idi fro sc s d i OM fro OM fro OM en ing e r e r an e a e p m UIV EC m nc fr ts fr les les in in g c de ate bt g a en in no to m dit is in m rea ay (AD ary xt nc rib nc m ed ep s a m ce en sa ac RE ial sa FI om m IN om m cq urc O in sh AL fin sh 01 fin pr t a su cre inv me of of ap di e l cr Ge ct n-c om ed se fin , n s ( inv le em ay as ds P 0 le uis AS NA fin inv nd PE VE ve an tiv an ha EN fin e o in fin fix ct ea ea inc ivit es ort ita ffe ort 0) as in ) c et ne an nt un me an as es e an an de nto RA se NC pti es ivit itie E I cia ST ve itio 11 : cin se TS tm ed -te l (A se ren se w -te ipa f e ies an Ite an ap e i of of rat rea cin h t d u tm d v cin nt on ts m1 tm +0 N C st TIN po of rie ING l in ME n o ta ies ork be s AT g a en rm qu ca cia rm cin n i loa ita DP ce ran ion ls, of g a en lis nre of me alu g a en fix s sit 12 ng t a lia l nit sh re AS str ity NT f fi G A fo lo ing s i A cti l in TH ns 01 g a ed d. cre tre sa t a ct t a ) s f ed ali ibl e a cti ial nt cti re ac na CT um vit fin an A ce n r bil H F an str ca ) d. CT cti ivit 3 t E B ct ct dit cti or vit ta vit se as (s e a ies ac CT an nc iva ch dju IVI es s a qu itie on ivit en ivit um LO vit d d pit o 0 ies pr ies IVI ies the ng d g ury ub tiv EG ial cia nd an TIE IVI pe ire ble s stm ts ies s a nd al ies ies TIE W inc en ibl ep 16 sc itie in sh pe ain INN in TIE ge d ct (AD l in S ot s S nd e a ts ) ipa os S en rib str tan of (AD s (AD s i s a (AD are rio (AD str S ING he un P 0 (AD t o ed its (AD um nd ca ls, n w (AD d gib nd r b um P 0 s a P 0 P 0 O rea f fix P ) c sh lo 35 in en P 0 lo or P 0 or le F T en P 0 40 nd ap 21 an tan an 39 to ed lis ts row ss kin as 17 28 ts to to HE 03 ita +0 s a 27 ed ta gib d c es se to g an to ing 04 l 02 +0 ga ng an 8) 45 nd 01 as le ts 03 d s ibl 4) 6) ) 33 ins h d 9) 2) e ) co AD 04 04 04 04 04 04 04 04 04 04 03 03 03 03 03 03 03 03 03 03 02 02 02 02 02 02 02 02 02 02 01 01 01 01 01 01 01 01 01 01 00 00 00 00 00 00 00 00 00 2 de 9 8 7 6 5 4 3 2 1 0 9 8 7 6 5 4 3 2 1 0 9 8 7 6 5 4 3 2 1 0 9 8 7 6 5 4 3 2 1 0 9 8 7 6 5 4 3 2 1 P the Sa pr me -5 -5 52 52 -24 -24 -24 -12 -20 ev 34 22 34 39 38 59 13 13 12 pe -4 -6 -4 -1 8,6 2,2 7,9 7,2 8,5 1,9 1,9 3 iou ,80 ,94 ,87 ,07 ,08 ,08 ,48 ,46 ,95 ,46 ,93 ,17 ,13 ,03 ,96 ,85 ,34 ,21 rio -63 46 62 78 25 57 18 18 s y -6 3,9 0,1 6,5 8,4 6,2 6,2 7,8 7,8 4,2 7,4 9,9 4,7 8,9 0,5 2,6 7,8 7,5 3,0 2,4 1,6 d o ,76 ,46 ,46 ,55 ,60 ,60 ,80 ,22 ,98 ea 42 34 89 35 63 63 28 28 65 13 78 35 77 05 83 68 95 90 56 73 f 0 9 1 3 3 7 0 r 0 3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 Cu rre -5 -5 47 47 10 12 16 -43 -15 -2 -1 -42 55 65 38 42 97 65 14 14 16 nt -1 -2 -2 -9 6,5 4,5 0,0 2,9 1,4 1,4 1,6 1,4 4 -20 ,43 ,83 ,23 ,68 ,68 ,97 ,18 ,18 ,53 ,87 ,92 ,64 ,46 ,24 ,14 ,83 pe 21 21 55 55 23 57 21 23 79 14 rio 2,5 0,0 7,3 7,3 5,7 8,0 8,0 2,3 2,3 4,6 5,9 3,4 5,9 8,9 7,4 7,8 1,8 1,1 1,2 ,40 ,49 ,49 ,27 ,94 ,81 ,41 ,10 d 30 83 85 77 77 05 67 67 62 62 71 27 61 65 38 95 86 11 19 2 2 3 4 8 6 5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0	02 eq VI 5 O de 3 C oth 3 C de PE E) D) 1 U C) 1 C 1 C Ca B) N CA 0+ uiv To cre bt RIO NE sh NE er




	4 C 2 C V T 4 O 2 C









	IV
	5 O
	4 A 3 C
	2 C as se
	1 C
	III To
	6 O
	5 C 4 D
	3 I 2 C nte
	1 C
	Ca sh
	A) N
	5 I 4 I nc nte
	II C as
	d) c) In O
	b) a) In In
	3 C
	ca I C pit as
	h) an O d l
	g) f) Ex Pr
	e) d) In
	c) va G lue
	b) an d i
	a) D
	2 A 1 P
	Ca sh

	Su bm

THIRD QUARTER AND THE FIRST NINE MONTHS OF 2022 Statement of changes in equity

STATEMENT OF CHANGES IN EQUITY
for the period from 01.01.2022 to 30.09.2022																		in HRK
										Attributable to owners of the parent
Item	ADP 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 investment 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 to 6 - 7 + 8 to 17)	19	20 (18+19)
Previous period
1 Balance on the first day of the previous business year	01	436,667,250	68,425,976	5,118,250	1,578,097	1,578,097		0 55,000,000		0 0		0	0 0	-43,479,713	56,765,436		0 578,497,199	0	578,497,199
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	436,667,250	68,425,976	5,118,250	1,578,097	1,578,097		0 55,000,000		0 0		0	0 0	-43,479,713	56,765,436		0 578,497,199	0	578,497,199
5 Profit/loss of the period	05	0		0	0	0 0		0 0		0 0		0	0 0		0 0	-20,212,473	-20,212,473	0	-20,212,473
6 Exchange rate differences from translation of foreign operations	06	0		0	0	0 0		0 0		0 0		0	0 0	33,787,796	0		0 33,787,796	0	33,787,796
7 Changes in revaluation reserves of fixed tangible and intangible assets	07	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)	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 ow ners	13	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	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 63,553	63,553		0 0		0 0		0	0 0		0 -63,553		0 -63,553	0	-63,553
19 Payments from members/shareholders	19	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	20	0		0	0	0 0		0 0		0 0		0	0 0		0 0		0 0	0	0
21 Other distributions and payments to members/shareholders	21	0		0	0	0 0		0 0		0 0		0	0 0		0 0		0 0	0	0
22 Transfer to reserves according to the annual schedule	22	0		0	0	0 0		0 0		0 0		0	0 0		0 0		0 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	436,667,250	68,425,976	5,118,250	1,641,650	1,641,650		0 55,000,000		0 0		0	0 0	-9,691,917	56,701,883	-20,212,473	592,008,969	0	592,008,969
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		0	0	0 0		0 0		0 0		0	0 0	33,787,796	0		0 33,787,796	0	33,787,796
II COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD (ADP 05+25)	26	0		0	0	0 0		0 0		0 0		0	0 0	33,787,796	0	-20,212,473	13,575,323	0	13,575,323
III TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD RECOGNISED DIRECTLY IN EQUITY (ADP 15 to 23)	27	0		0	0 63,553	63,553		0 0		0 0		0	0 0		0 -63,553		0 -63,553	0	-63,553

Item	ADP 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 investment 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 to 6 - 7 + 8 to 17)	19	20 (18+19)
Current period
1 Balance on the first day of the current business year	28	436,667,250	68,425,976	5,118,250	1,641,650	1,641,650		0 55,000,000		0	0 0		0 0	13,365,296	-30,286,941	0	548,289,831	0	548,289,831
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)	31	436,667,250	68,425,976	5,118,250	1,641,650	1,641,650		0 55,000,000		0	0 0		0 0	13,365,296	-30,286,941	0	548,289,831	0	548,289,831
5 Profit/loss of the period	32	0		0 0		0 0		0 0		0	0 0		0 0	0		0 65,831,286	65,831,286	0	65,831,286
6 Exchange rate differences from translation of foreign operations	33	0		0 0		0 0		0 0		0	0 0		0 0	137,714,979		0 0	137,714,979	0	137,714,979
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 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 ow ners	40	0	-30,286,941	0		0 0		0 0		0	0 0		0 0	0	30,286,941	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
15 Decrease in initial (subscribed) capital (other than arising from the pre bankruptcy settlement 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		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 0	0	0	0
21 Other distributions and payments to members/shareholders	48	0		0 0		0 0		0 0		0	0 0		0 0	0		0 0	0	0	0
22 Carryforw ard per annual plane	49	0		0 0		0 0		0 0		0	0 0		0 0	0		0 0	0	0	0
23 Increase in reserves arising from the pre-bankruptcy settlement procedure	50	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 current business year reporting period (ADP 31 to 50)	51	436,667,250	38,139,035	5,118,250	1,641,650	1,641,650		0 55,000,000		0	0 0		0 0	151,080,275		0 65,831,286	751,836,096	0	751,836,096
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	-30,286,941	0		0 0		0 0		0	0 0		0 0	137,714,979	30,286,941	0	137,714,979	0	137,714,979
II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP 32 do 52)	53	0	-30,286,941	0		0 0		0 0		0	0 0		0 0	137,714,979	30,286,941	65,831,286	203,546,265	0	203,546,265
III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED DIRECTLY IN EQUITY (ADP 42 to 50)	54	0		0 0		0 0		0 0		0	0 0		0 0	0		0 0	0	0	0

Attributable to owners of the parent

NOTES TO THE FINANCIAL STATEMENTS

GENERAL INFORMATION

Tankerska Next Generation d.d. is a shipping joint-stock company, founded in the Republic of Croatia and registered in the Court Register of the Commercial Court in Zadar under the entity registration number MBS 110046753, OIB 30312968003. Tankerska Next Generation d.d. is headquartered at Zadar, Božidar Petranovića 4.

Management Board:

• John Karavanić, the sole member of the Board

Supervisory board members from January 1 st , 2022 up to the reporting date:

Ivica Pijaca, chairman
Mario Pavić, vice chairman
Nikola Koščica, member
Joško Miliša, member
Dalibor Fell, member

As of September 30th , 2022 Tankerska Next Generation's Inc. share capital amounted to HRK 436,667,250 divided into 8,733,345 TPNG-R-A shares without nominal value. The amount of share capital per share is HRK 50.

The table below shows the overview of ownership structure on September 30th , 2022:

	Number of shares	Ownership share %
Tankerska plovidba d.d.	7,983,550	91.41
Zagrebačka banka	120,000	1.37
Other shareholders	601,476	6.90
	28,319	0.32
Own shares
	8,733,345	100.00

The Financial Statements for the period ending September 30th , 2022 include assets and liabilities, revenues and expenses respectively of Tankerska Next Generation Inc. and its international subsidiaries (companies engaged in international shipping). All companies are managed by Tankerska Next Generation Inc. from the sole headquarters and by the same Management Board. Pursuant to the Article 429.a, section 4 of the Maritime Code ("Official Gazette" No. 181/04., 76/07., 146/08., 61/11., 56/13., 26/15. and 17/19.) Tankerska Next Generation Inc. is obliged to conduct accounting and prepare financial statements for all domestic and international business operations, including all shipping companies in which it holds the majority ownership and which are engaged in vessel operations with their net tonnage being included in the tonnage tax calculation.

For some of Tankerska Next Generation Inc. subsidiaries that, pursuant to the regulations of the states they have been founded in, are not obliged to keep business books and prepare financial statements, Tankerska Next Generation Inc., in accordance with the Accounting Act and the Income Tax Act, states their assets and liabilities, revenues and expenses respectively, within its financial statements.

PRINCIPAL ACCOUNTING POLICIES

The financial statements of Tankerska Next Generation d.d., Zadar include assets and liabilities, i.e. income and expenses of the following subsidiaries 100% owned by Tankerska Next Generation d.d.:

1. Tankerska Next Generation International Ltd., Majuro, Marshall Islands;
1. Fontana Shipping Company Ltd., Monrovia, Liberia;
1. Teuta Shipping Company Ltd., Monrovia, Liberia;
1. Vukovar Shipping, LLC, Majuro, Marshall Islands;
1. Zoilo Shipping, LLC, Majuro, Marshall Islands;
1. Pag Shipping, LLC, Majuro Marshall Islands.

Financial statements have been prepared based on the same accounting policies, presentations and calculation methods as the ones used during preparation of the financial statements for the period ending 31st December 2021.

CHANGES IN THE REPORT ON FINANCIAL POSITION AND BUSINESS RESULTS FOR THE REPORTING PERIOD

Business events that are significant for understanding the changes in the statement of financial position (balance sheet) and achieved business results for the reporting period (profit and loss account) in relation to the last business year are described in Management report which is attached to these financial statements.

INCOME AND EXPENSES OF EXCEPTIONAL SIZE OR OCCURRENCE

All significant changes in the Company's income and expenses are listed in the Management report, which is attached to these financial statements.

DEBT

The amount of the Company's loans and other loans is described and presented in more detail in the Management report, which is attached to these financial statements.

EMPLOYEES

As of September 30, 2022, 140 people were employed in the Company.

EARNINGS PER SHARE

EARNINGS PER SHARE	Period st Jan – 30th Sep 1 2021	Period st Jan – 30th Sep 1 2022
Net (loss) / profit to shareholders	(HRK 20,212,473)	HRK 65,831,286
Weighted average number of shares	8,705,549	8,705,549
Basic (loss) / earnings per share	(HRK 2,32)	HRK 7,56

Basic and diluted earnings per share are equal since the Company has no potentially dilutive ordinary shares.

RELATED PARTY TRANSACTIONS	Period 1st Jan - 30th Sep 2021 1st Jan - 30th Sep 2022	Period
Sales to related parties	HRK O	HRK O
Purchase from related parties	HRK 12,637,727	HRK 15.674.527
Receivables from related parties	HRK O	HRK O
Liabilities towards related parties	HRK 5,351,922	HRK 4.778.472
Given loans to related parties	HRK O	HRK O
Received loans from related parties	HRK 28,919,596	HRK O

TRANSACTIONS WITH THE RELATED PARTIES SUBSEQUENT EVENTS AFTER BALANCE SHEET DATE

There were no events after the balance sheet date that would significantly affect the Company's financial statements as at September 30th, 2022.

OTHER ANNOUNCEMENTS

Other announcements related to the understanding and interpretation of these reports are listed in the report of the Management Board, which is an attachment to these financial statements.

The financial statements for the period starting January 1st , 2022 and ending September 30 th , 2022¸ have been prepared by applying the International Financial Reporting Standards and provide an accurate and truthful review of assets, liabilities, profit and loss, financial position and operating of the Company.

The report of the Management Board on the Company's operations for the period starting on January 1st , 2022, and ending on September 30 th , 2022, contains a fair presentation of the Company's development, operating results and position with the description of significant risks and uncertainty the Company is exposed to.

Zadar, October 28th , 2022

John Karavanić, CEO

The Group uses a variety of industry terms and concepts when analysing its own performance. These include the following:

Revenue Days. Revenue Days represent the total number of calendar days the Group's vessels were in possession of the Group during a period, less the total number of Off-Hire Days during that period generally associated with repairs, drydocking or special or intermediate surveys.

Consequently, Revenue Days represent the total number of days available for a vessel to earn revenue. Idle days, which are days when a vessel is available to earn revenue, yet is not employed, are included in Revenue Days. The Group uses Revenue Days to explain changes in its net voyage revenues (equivalent to time charter earnings) between periods.

Off-Hire Days. Off-Hire Days refer to the time a vessel is not available for service due primarily to scheduled and unscheduled repairs or drydocking.

When a vessel is off-hire, or not available for service, the charterer is generally not required to pay the charter hire rate and the Group will be responsible for all costs, including the cost of fuel bunkers unless the charterer is responsible for the circumstances giving rise to the lack of availability. Prolonged off-hire may obligate the vessel owner to provide a substitute vessel or permit the charter termination.

The Group's vessels may be out of service, that is, offhire, for several reasons: scheduled drydocking, special surveys, vessel upgrade or maintenance or inspection, which are referred to as scheduled off-hire; and unscheduled repairs, maintenance, operational deficiencies, equipment breakdown, accidents/incidents, crewing strikes, certain vessel detentions or similar problems, or charterer's failure to maintain the vessel in compliance with its specifications and contractual and/or market standards (for example major oil company acceptances) or to man a vessel with the required crew, which is referred to as unscheduled off-hire.

Operating Days. Operating Days represent the number of days the Group's vessels are in operation during the year. Operating Days is a measurement that is only applicable to owned and not bareboated or charteredin vessels. Where a vessel is under the Group's ownership for a full year, Operating Days will generally equal calendar days. Days when a vessel is in a dry dock are included in the calculation of Operating Days as the Group still incurs vessel operating expenses.

Operating Days are an indicator of the size of the fleet over a period of time and affect both revenues and expenses recorded during that period.

Time Charter Equivalent (TCE). TCE is a standard shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charter hire rates for vessels on voyage charters are generally not expressed per day as charter hire rates for vessels on time charters are. Therefore the net equivalent of a daily time voyage rate is expressed in net daily time charter rate.

(Net) TCE earnings. The Group defines time charter equivalent earnings, or TCE earnings, as vessel revenues less commissions and voyage-related costs (both major and minor) during a period.

(Net) TCE rates. The Group defines time charter equivalent rates, or TCE rates, as vessel revenues less commission and voyage related costs (both major and minor) during a period divided by the number of Revenue Days during that period. TCE rates is a measure of the average daily revenue performance of a vessel or a fleet, achieved on a given voyage or voyages and it is expressed in US dollars per day. TCE rates correspond to the net voyage earnings per day. The Group's definition of TCE rates may not be the same as that used by other companies in the shipping or other industries. The Group uses the foregoing methodology for calculating TCE rates and TCE earnings in cases of both time charter and voyage charter contracts.

Gross Time Charter rates (GTC rates). The Group defines gross time charter rates, or GTC rates, as vessel revenues during a period divided by the number of Revenue Days during that period. GTC rates should reflect the average daily charter rate of a vessel or a fleet and is expressed in US dollars per day. The Group's definition of GTC rate may not be the same as that used by other companies in the shipping or other industries.

Daily vessel operating expenses. Daily vessel operating expenses is a metric used to evaluate the Group's ability to efficiently operate vessels incurring operating expenses and to limit these expenses.

Daily vessel operating expenses represent vessel operating expenses divided by the number of Operating Days of vessels incurring operating expenses and is expressed in US dollars per day.

Average number of vessels. Historical average number of owned vessels consists of the average number of vessels that were in the Group's possession during a period. The Group uses average number of vessels primarily to highlight changes in vessel operating costs.

Fleet utilization. Fleet utilization is the percentage of time that the Group's vessels generate revenues. The shipping industry uses fleet utilization to measure a company's efficiency in finding employment for its vessels and in minimizing the number of days that its vessels are off-hire for reasons such as scheduled repairs, drydocking, surveys or other reasons other than commercial waiting time. Fleet utilization is calculated by dividing the number of Revenue Days during a period by the number of Operating Days during that period.

The Group's performance can be affected by some of the following types of contracts:

Time charter. Time charter is a contract under which a charterer pays a fixed daily hire rate on a semi-monthly or monthly basis for a fixed period of time for using the vessel. Subject to any restrictions in the charter, the charterer decides the type and quantity of cargo to be carried and the ports of loading and unloading. Under a time charter the charterer pays substantially all of the voyage-related costs (etc. port costs, canal charges, cargo manipulation expenses, fuel expenses and others). The vessel owner pays commissions on gross voyage revenues and the vessel operating expenses (etc. crew wages, insurance, technical maintenance and other).

Time charter rates are usually fixed during the term of the charter. Vessels operating on time charters for a certain period of time provide more predictable cash flows over that period of time, but can yield lower profit margins than vessels operating under voyage charters in the spot market during periods characterized by favourable market conditions. Prevailing time charter rates fluctuate on a seasonal and year-on-year basis reflecting changes in spot charter rates, expectations about future spot charter rates and other factors. The degree of volatility in time charter rates is lower for longer-term time charters compared to shorter-term time charters.

Voyage charter. Voyage charter involves the carriage of a specific amount and type of cargo from a specific loading port(s) to a specific unloading port(s) and most of these charters are of a single voyage nature. The owner of the vessel receives one payment derived by multiplying the tonnes of cargo loaded on board by the cost per cargo tonne. The owner is responsible for the payment of all expenses including commissions, voyage-related costs, operating expenses and capital costs of the vessel. The charterer is typically responsible for any costs associated with any delay at the loading or unloading ports. Voyage charter rates are volatile and fluctuate on a seasonal and year-onyear basis.

Other charters. Besides the two most common charters (time and voyage) the shipping industry provides other types of contracts between the ship owner and the charterer:

• Bareboat charter. Bareboat charter is a contract pursuant to which the vessel owner provides the vessel to the charterer for a fixed period of time at a specified daily rate, and the charterer provides for all of the vessel's operating expenses in addition to the commissions and voyage related costs, and generally assumes all risk of operation. The charterer undertakes to maintain the vessel in a good state of repair and efficient operating condition and drydock the vessel during the term of the charter consistent with applicable classification society requirements.

• Time charter trip. Time charter trip is a short term time charter where the vessel performs a single voyage between loading port(s) and unloading port(s). Time charter trip has all the elements of a time charter including the upfront fixed daily hire rate.

The Group uses a variety of financial and operational terms and concepts when analysing its own performance. These include the following:

Vessel revenues. The Group generates revenues by charging customers for the transportation of their oil products using its own vessels. Historically, the Operating Fleet's services have generally been provided under time charters although the Group may enter into voyage charters in the future. The following describes these basic types of contractual relationships:

Time charters, under which the vessels are chartered to customers for a fixed period of time at rates that are generally fixed; and

Voyage charters, under which the vessels are chartered to customers for shorter intervals that are priced on a current or "spot" market rate

Under a time charter the charterer pays substantially all of the voyage-related costs. The vessel owner pays commissions on gross vessel revenues and also the vessel operating expenses. Time charter rates are usually fixed during the term of the charter.

Vessels operating under time charters provide

more predictable cash flows over a given period of time, but can yield lower profit margins than vessels operating under voyage charters in the spot market during periods characterized by favourable market conditions. Prevailing time charter rates fluctuate on a seasonal and year-onyear basis reflecting changes in spot charter rates, expectations about future spot charter rates and other factors. The degree of volatility in time charter rates is lower for longer-term time charters as opposed to shorter-term time charters.

Other revenues. Other revenues primary includes revenues from charterers for other services and revenues from profit commission on insurance policies.

Primary distinction among these types of charters and contracts

	Time charter	Voyage charter
Typical contract length	1-5 years	Single voyages, consecutive voyages and contracts of affreightment (COA)
Hire rate basis (1)	Daily	Varies
Commercial fee (2)	The Group pays	The Group pays
Commissions (2)	The Group pays	The Group pays
Major Vessel related costs (2)	Customer pays	The Group pays
Minor Vessel related cost (2)	The Group pays	The Group pays
Vessel operating costs (2)	Customer does not pay	Customer does not pay
(1) 'Hire' rate refers to the basic payment from the charterer for the use of the vessel

(2) See 'Important Financial and Operational Terms and Concepts below'

(3) 'Off-hire' refers to the time a vessel is not available for service due primarly to scheduled and unscheduled repairs and drydockings

Commercial fee. Commercial fees expenses include fees paid to the Fleet Manager, under the Management Agreement, for providing the Group with chartering and commercial management services.

Commissions. Commissions are realized in two basic forms: addressed commission and brokerage commission.

Addressed commission is commission payable by the ship owner to the charterer, regardless of charter type and is expressed as a percentage of the freight or hire. This commission is a reimbursement to the charterer for costs incurred in relation to the chartering of the vessel either to third party brokers or by the charterer's shipping department.

Brokerage commission is payable under a time charter on hire. Subject to the precise wording of the charter, the broker's entitlement to commission will therefore only arise when the charterers remit hire or is recovered by some other means. Commission under a voyage charter is payable on freight, and may also be payable on deadfreight and demurrage.

Voyage-related costs. Voyage-related costs are typically paid by the ship owner under voyage charters and by the customer under time charters. Voyagerelated costs are all expenses which pertain to a specific voyage. The Group differs major and minor voyage-related costs.

Most of the voyage-related costs are incurred in connection with the employment of the fleet on the spot market (voyage charter) and under COAs (contracts of affreightment). Major voyage-related costs include bunker fuel expenses, port fees, cargo loading and unloading expenses, canal tolls, agency fees, extra war risks insurance and any other expenses related to the cargo are typically paid by the customer.

Minor voyage-related expenses such as draft surveys, tank cleaning, postage and other minor miscellaneous expenses related to the voyage may occur and are typically paid by the ship owner. From time to time, the ship owner may also pay a small portion of above mentioned major voyage-related costs.

Vessel operating costs. The Group is responsible for vessel operating costs which include crewing, repairs and maintenance, lubricants, insurance, spares, stores, registration and communication and sundries.

Vessel operating costs also includes management fees paid to the Fleet Manager, under the Management Agreement, for providing the Group with technical and crew management, insurance arrangements and accounting services.

The largest components of vessel operating costs are generally crews and repairs and maintenance. Expenses for repairs and maintenance tend to fluctuate from period to period because most repairs and maintenance typically occur during periodic drydocking. These expenses may tend to increase as these vessels mature and thus the extent of maintenance requirements expands.

Depreciation and amortization. The Group depreciates the original cost, less an estimated residual value, of its vessels on a straight-line basis over each vessel's estimated useful life. The estimated useful life of 25 years is the Management Board's best estimate and is also consistent with industry practice for similar vessels. The residual value is estimated as the lightweight tonnage of each vessel multiplied by an estimated scrap value (cost of steel) per tone. The scrap value per tone is estimated taking into consideration the historical Indian sub-continent five year scrap market rate.

Depreciation expense typically consists of charges related to the depreciation of the historical cost of the vessels (less an estimated residual value) over the estimated useful lives of the vessels and charges relating to the depreciation of upgrades to vessels, which are depreciated over the shorter of the vessel's remaining useful life or the life of the renewal or upgrade. The Group reviews the estimated useful life of vessels at the end of each annual reporting period.

Drydocking and surveys (special and intermediate).

The vessels are required to undergo planned drydocking for replacement of certain components, major repairs and maintenance of other components, which cannot be carried out while the vessels are operating, approximately every 30 months or 60 months depending on the nature of work and external requirements. The Group intend to periodically drydock each of vessels for inspection, repairs and maintenance and any modifications to comply with industry certification or governmental requirements. The number of drydocking undertaken in a given period and the nature of the work performed determine the level of drydocking expenses.

Vessel impairment. The carrying amounts of the vessels are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indications exists, the vessel`s recoverable amount is estimated. Vessels that are subject to deprecation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. The carrying values of the vessels may not represent their fair market value at any point in time since the market prices of second-hand vessels tend to fluctuate with changes in charter rates and the cost of newbuilds. Historically, both the charter rates and vessel values have been cyclical in nature.

Management Board's judgment is critical in assessing whether events have occurred that may impact the carrying value of the vessels and in developing estimates of future cash flows, future charter rates, vessel operating expenses, and the estimated useful lives and residual values of those vessels. These estimates are based on historical trends as well as future expectations. Management Board's estimates are also based on the estimated fair values of their vessels obtained from independent ship brokers, industry reports of similar vessel sales and evaluation of current market trends.

General and administrative expenses. General and administrative expenses comprise of the administrative staff costs, management costs, office expenses, audit, legal and professional fees, travel expenses and other expenses relating to administration.

Interest expense and finance costs. Interest expense and finance costs comprise of interest payable on borrowings and loans and foreign exchange gains and losses.

Tonnage tax. The tonnage tax regime is introduced into the Croatian maritime legislation by new amendments to the Maritime Act and is applicable from January 1, 2014. According to the relevant provisions of the Maritime Act ("Maritime Act"), qualifying companies may choose to have their shipping activities taxed on the basis of the net tonnage of their fleet instead of on the basis of their actual profits. Companies, having opted for the tonnage tax, must remain subject to this regime for the following 10 years. The qualifying company has to be a shipping company liable under the Croatian corporate tax on any profits it generates. Furthermore, it must operate the vessels which satisfy all applicable requirements, and most importantly, the qualifying company must be carrying out the strategic and commercial management activities of vessels in Croatia.

In the tonnage tax system, the shipping operations shifted from taxation of business income to tonnagebased taxation. Under the tonnage tax regime, the tax liability is not calculated on the basis of income and expenses as under the normal corporate taxation, but is based on the controlled fleet's notional shipping income, which in turn depends on the total net tonnage of the fleet under management.

Summary of expenses. Under voyage charters, the Group will be responsible for commissions, all vessel voyage-related costs and operating expenses. Under time charters, the charterer generally pays commissions, operating expenses and minor voyagerelated costs. For both types of contracts the Group is responsible to pay fees to the Fleet Manager, under the Management Agreement.

EXPENSE TYPE	MAIN COMPONENTS	TIME CHARTER	VOYAGE CHARTER
Capital	Capital
	Principal Repayment
	Interest
Operating	Crewing
	Repairs and Maintenance
	Lubricants
	Insurance
	Spares and stores
	Registration, communication and sundries
	Management fee*
	technical management
	crew management
	insurance arrangements
	accounting services
Commisions	Address
	Brokerage
Commercial fee*	Chartering and commerical management services
Voyage (minor)	Draft surveys
	Tank cleaning
	Postage
	Other minor miscellaneous expenses
Voyage (major)	Bunker fuel expenses
	Port fees
	Cargo loading and unloading expenses
	Canal tolls
	Agency fees
	Extra war risks insurance
	Other expenses related to the cargo

Certain statements in this document are not historical facts and are forward-looking statements. They appear in a number of places throughout this document. From time to time, the Group may make written or oral forward-looking statements in reports to shareholders and in other communications. Forward-looking statements include statements concerning the Group's plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditure, financing needs, plans or intentions relating to acquisitions, competitive strengths and weaknesses, business strategy and the trends which the Group anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information.

Words such as "believe", "anticipate", "estimate", "expect", "intend", "predict", "project", "could", "may", "will", "plan" and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. Prospective investors should be aware that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements.

When relying on forward-looking statements, investors should carefully consider the foregoing factors and other uncertainties and events, especially in light of the political, economic, social and legal environment in which the Group operates. Such forward-looking statements speak only as of the date on which they were made.

Accordingly, the Company does not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise, other than as required by applicable laws and the Zagreb Stock Exchange Rules. The Company makes no representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved, and such forward-looking statements represent, in each case, only one of many possible scenarios and should not be viewed as the most likely or standard scenario.

Contact