Annual Report • Jul 30, 2021
Annual Report
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Valamar Riviera is Croatia's leading tourism company operating hotels, resorts and camping resorts in prime destinations – Istria, the islands of Krk, Rab and Hvar, Makarska, Dubrovnik, and Obertauern in Austria. With over 21,000 keys, Valamar's 36 hotels and resorts and 15 camping resorts can welcome around 58,000 guests daily and provide perfect holidays and authentic experiences for each guest.
The company believes in a growthdriving strategy focused on investments in high added-value products, talents, innovative services and destinations to maintain business continuity. The active promotion and advancement of these interests make Valamar Riviera a responsible and desirable employer and one of the top Croatian and regional investors in tourism with over HRK 6 billion invested in the last 17 years.
Steered by sustainability and social responsibility, Valamar leads the innovative management of leisure tourism and continuously creates new value for all our stakeholders.
Valamar Riviera's business success is based on longstanding partnerships and an open communication with its key stakeholders. Therefore, we have established policies at company level that represent our continuing commitment to be the hospitality market leader in Croatia in terms of service quality, guest and user satisfaction, caring for the interests of our employees, company and local community, environmental protection and resource management.
Tourism portfolio of Valamar Riviera Group
Despite the strong impact of the COVID-19 pandemic and the associated travel restrictions, Valamar Riviera Group achieved a positive adjusted EBITDA of HRK 19.6 million in the first half of 2021. This represents an increase of HRK 126.6 million compared to the same period in 2020 and a decrease of HRK 66.8 million compared to 2019. An important reason for such an improvement in results can be found in the general streamlining of operations and internal austerity measures taken as well as a longer period of using support measures of the Government of the Republic of Croatia to preserve jobs and implementation of "Pause, restart program" (6 months in 2021, 3 months in 2020). In addition, the number of overnights increased significantly by 134.4% as the Group opened most properties during June. Operating revenues in the first half of 2021 increased by 114.5% to HRK 266.4 million compared to the same period last year.
In July 2021, Valamar generated about 90% of board revenues achieved in July 2019, which, along with semi-annual results indicates that the recovery of tourism has begun. Istria and the northern Adriatic destinations achieved a similar result to that of 2019, while Dubrovnik and southern destinations still fall behind. The booking trend for August is improving in southern destinations while northern destinations report nearly pre-covid booking levels. There is still a high level of uncertainty regarding year-end business results due to the unpredictable nature of the pandemic in Europe and the new Delta variant of the virus. Valamar expects that the tourism sector will continue to be affected by the crisis in 2021, while business normalization is expected in 2022 and 2023.
In the first half of 2021, Valamar completed several major property investments, which were opened for the 2021 summer season. Valamar has also launched a new lifestyle brand by opening the first hotel branded HVAR [PLACESHOTEL] by Valamar in Stari Grad on the island of Hvar (ex hotel Lavanda). Soon after their completion and renovation, Valamar Parentino Hotel in Poreč and the Valamar Meteor Hotel in Makarska also opened for the 2021 season. Istra Premium Camping Resort by Valamar in Funtana near Poreč obtained new luxury offer and services from luxurious plots by the sea and modern camping homes to glamping tents and stylish camping villas with pools.
| Significant Business Events | 5 |
|---|---|
| Results of the Group | 10 |
| Results of the Company | 20 |
| Investments | 22 |
| The Risks of the Company and the Group | 26 |
| Corporate Governance | 32 |
| Related-party Transactions and Branch Offices | 35 |
| Valamar Share | 37 |
| Additional Information | 41 |
| Disclaimer | 43 |
| Responsibility for the Quarterly Financial Statements | 45 |
| Quarterly Financial Statements | 46 |
In the first half of 2021, Valamar achieved 851,183 overnights, an increase of 134% compared to the same period last year.
In the first quarter of 2021, the number of overnights was very low with only one open hotel -Valamar Diamant Hotel & Residence. Valamar Diamant Hotel & Residence shifted from the regional to the Croatian market, with special focus on weekend stays, professional national and foreign sports groups without indoor training bans and regional cyclists groups. Valamar Obertauern Hotel in Austria was closed for the entire 2020/21 ski season. In the same period, two camping resort were opened year-round with a special "extended stay" offer (14 and 30 days), focusing on families and individuals who were able to work/study remotely. The Croatian market responded well with a domestic sales share of over 50%.
In the second quarter, the trend was reversed and a noticeable increase in the number of overnights was achieved, although measures related to the COVID-19 pandemic in Europe were still in force. This is primarily due to the great desire to travel after a long period of restrictions and a somewhat less restrictive policy of crossing state borders. Our northern destinations were the most visited: Poreč, Rabac and the islands of Krk and Rab, while southern destinations Makarska, Hvar and Dubrovnik reported lower occupancy rates due to the lack of flights and a slightly greater distance from source markets. The booking trend remains the same as in 2020: "last minute". Booking terms are extremely flexible, provide guests with security in the event of a travel cancellation, and encourage booking in general. The share of direct booking is currently 66%. June reports the return of group and allotment sales channels, which have stagnated until recently.
CRISIS MANAGEMENT DURING COVID-19
Uncertainties related to the global pandemic are persistent in 2021 and further disruptions in tourism flows are still possible, which could have a negative effect on the Group's business results. Rising vaccinations rates and the COVID-19 EU pass certainly aid the hospitality industry. The COVID-19 passport is a document with digital record of an individual's status regarding vaccination, recovery from infection or the test results.
It is still early to make quantitative estimates related to the negative impact of COVID-19 on Valamar's business operations in the coming period. We expect that the tourism sector will continue to be affected by the crisis in 2021, while business normalization is expected in 2022 and 2023.
Istria and the northern Adriatic destinations (with most of the Group's properties) have the advantage of being traditional drive-in destinations for our source markets (Italy, Slovenia, Austria, Germany, the Netherlands, the Chezch Republic, Hungary, etc). Camping resorts also play a great role in attracting guests, and proved to be the first choice for many tourists not only because of the perceived lower risk of COVID-19, but also because of the higher service level and offer obtained through significant investments in recent years.
The health and safety of our guests remains our top priority. Last season we introduced key innovations including our V Health & Safety program of comprehensive health, safety and environmental standards, the " CleanSpace - 100% privacy" enhanced cleaning system, Online reception, a new concept named "Bed & Brunch" and Valfresco Direkt an online shop and food delivery service with products from local family farms and suppliers. This season, Valamar introduced V-care guarantee, which provides the organization of all necessary health services during the guests' stay (including in case of COVID-19 infection). Guests who have made reservations directly via valamar.com or the Valamar reservation centre, the aforementioned service includes free medical counselling by phone (call or video call) 24 hours a day, ANTIGEN testing within the hotel or camping resort and organizing PCR testing at designated locations in all Valamar destinations. Guests will also have their costs covered in case of extended stays for persons infected with COVID-19 and everyone included in their reservation for up to 14 days as well as reimburse travel expenses for the return journey of persons infected with COVID-19 if the return dates are different from the regularly scheduled return dates.
OPERATING RESULT, SUCCESSFUL PREPARATIONS FOR THE NEW TOURIST SEASON AND JOB PRESERVATION
TIMELY ADJUSTMENT OF BUSINESS ENSURED BETTER FINANCIAL AND
Since the beginning of the COVID-19 crisis, Valamar Riviera has actively approached the mitigation and control of potential risks, established the Risk Management Committee, and adopted Risk Management Regulation. The Committee's tasks and powers include risk assessment and its impact on business, guests and employees, as well as determining measures to protect guests and employees, property and organizing business processes and operations. Depending on the circumstances and intensity of the risk event, the Committee decides on changing the financial, business and contingency plan, activating escalation plans to preserve the company's liquidity, solvency, and maintaining business continuity, as well as other necessary acts in accordance with the assessment of bookings and revenues.
During 2020 and first half of 2021 necessary liquidity for the next period was provided through operational savings plans, investment savings, payment delays and agreements with banks and other investors. Valamar has deferred the vast majority of credit liabilities for 2020 and for the first half of 2021 and secured additional medium-term liquidity through a loan contract with a club of banks in the amount of EUR 66 million. During the first half of 2021, the Group regularly serviced its credit obligations in accordance with the agreed moratoriums in 2020. The Group's cash balance at the end of the first half was a high HRK 628 million.
The social partners of Valamar Riviera, led by the Trade Union of Tourism and Services of Croatia and the Trade Union of Istria, Kvarner and Dalmatia, supported the continuation of the Valamar employee program "Pause, Restart" for job preservation, which has been in force since March last year with the support of social partners and Government measures. The new agreement has been signed in the duration of one year and will be in effect from April 1, 2021 to March 31, 2022. The "Pause, Restart" program provides compensation in the amount of 60% of regular income, i.e. a minimum of HRK 4,250 net for all Valamar employees waiting for work. The cost is borne by shareholders with the support of current government measures. Additionally, in order to improve the Company's liquidity, the General Meeting of Shareholders in 2020 revoked the proposal on the Decision on dividend payment.
Government support measures were key to protecting jobs in tourism
GROUP'S CASH BALANCE AS OF 30 JUNE 2021 AT HRK 628 MILLION
last season and provided a strong incentive for all tourism companies to successfully cope with the crisis, until economic and tourism flows return to normal. The most significant measure is job protection in the sectors affected by the coronavirus (HRK 3,250 per employee for salaries in March, or HRK 4,000 for salaries from April to December 2020). The Government of the Republic of Croatia approved measures to protect employment for the period January-June 2021.
On 23 July 2021, the Management Council of the Croatian Employment Service adopted a decision on a new measure - the Program for retaining workers in activities of reduced economic activity for July 2021. The employer can receive support for July salaries for all workers for whom he seeks support if on August 25, 2021, 70 and more percent of those workers have an EU digital COVID certificate or have met the conditions for obtaining one in accordance with the rules of issuing EU digital COVID certificates in the Republic of Croatia. The employer can receive 100% support for 70 percent or more employees with Covid-certificates.
If less than 70% of the aforementioned workers hold an EU digital COVID certificate or have not met the conditions for acquiring one by August 25, 2021, then the percentage of support may be granted in accordance with the percentage of workers with EU digital COVID certificates or who meet the conditions for obtaining one. Valamar Riviera is currently analysing the impact of these new measures on the Group.
Valamar announced employee awards up to HRK 3,500 net for permanent and seasonal employees based on months worked. The amount of HRK 1,300 has already been paid out to employees as a reward for the successful opening of the summer season under difficult circumstances. In agreement with social partners, Valamar will pay an additional award of HRK 1,200 for July, while a special award has been agreed for all seasonal employees employed after June 1 in the amount of HRK 1,000 to be paid out in September. Valamar employees can receive an additional reward of up to HRK 1,000 per month for performance excellence. Valamar also guarantees a minimum net income of HRK 5,000 for all employees working full-time during the month.
Disruptions in tourism flows caused by the COVID-19 pandemic were present in the first half of 2021. Nevertheless, there was a significant increase in number of overnights of 134% compared to the same period last year, which resulted in an increase in operating income of 114%.
A positive adjusted EBITDA in the amount of HRK 19.6 million was achieved, which is an improvement of HRK 126.6 million compared to the negative adjusted EBITDA realized in the first half of 2020 in the amount of HRK -107.0 million. The main reasons for this are: adjustment of work to the conditions of the pandemic within the Group in the first half of 2021, which includes general business rationalization and internal savings measures, a longer period of using support measures of the Government of the Republic of Croatia to preserve jobs and implementation of "Pause, restart program" (6 months in 2021, 3 months in 2020) and a significant increase in revenue.
Despite challenging circumstances that mark the year 2020 and first half of 2021, we consider that Valamar Riviera Group is in a stable position to withstand the eventual exceptional decline in business activities during second half of 20211 . This is thanks to Valamar's proven successful business philosophy, a success formula consisting of continuous investment in employees, products and destinations, with high concern for sustainable business continuity and corporate social responsibility.
Valamar Riviera's Supervisory Board approved 2021 investments in the amount of HRK 123 million for the completion of earlier initiated investments (Istra Premium Camping resort 5* and the accommodation for employees in Dubrovnik) and the completion of the first investment phase in Valamar Pinea Collection Resort as well as digitalization projects, and future projects. Minimum planned investments for 2021 are aimed on completing initiated projects and preparing projects for new growth and development when conditions are met.
IMPROVED ADJUSTED EBITDA COMPARED TO THE COMPARABLE PERIOD IN 2020
PRODUCT AND PORTFOLIO DEVELOPMENT CONTINUES: BRAND PLACES BY VALAMAR LAUNCHED
In accordance with the Group Investment Policies, the Supervisory Board of Imperial Riviera approved investments in the amount of HRK 41 million, primarily aimed at completing investments in Valamar Meteor 4* hotel in Makarska and Valamar Parentino 4* hotel in Poreč for the 2021 season.
All works in the first half were proceeding according to plan.
Valamar has launched a new lifestyle brand called [PLACES] by Valamar, for guests seeking freedom of choice, modern designs and authentic destination experiences with full respect for nature and the environment. Lifestyle hotels are a recent trend in the hospitality industry because they push the boundaries of traditional hospitality products and services. These hotels focus on creating unique experiences and providing authentic services, i.e. interpret the most valuable aspect of a destination to attract modern and younger travellers. These travellers are primarily millennials who are venturous and enjoy encounters with like-minded people, natural foods and dishes and care for environmental sustainability. The first Valamar hotel under the new brand is HVAR [PLACESHOTEL] by Valamar in Stari Grad on Hvar (ex hotel Lavanda). Valamar invested close to HRK 53 million in the hotel's reconstruction which opened mid-May. The hotel has 179 rooms that are a blend of Mediterranean tradition and modern design.
With the completion of the second phase of investments initiated by Imperial Riviera in 2019, Valamar Meteor Hotel 4* in Makarska was successfully reconstructed and opened. This investment is worth HRK 85 million, and the hotel received a number of new services and higher quality accommodation. Valamar Meteor Hotel is market-oriented towards families with children, guests seeking an active vacation and athletes. The Valamar Meteor Hotel investments include the construction of a new outdoor pool and the expansion of the existing one with new services and offer as well as attractions adapted to family needs. It also included the renovation of the indoor pool with a wellness center according to the Valamar Sun & Spa concept. In the first phase a number of 111 rooms were renovated, while the remaining 160 rooms were completely refurbished in the second phase.
1 We refer to the Disclaimer on page 43 of this report
The regular General Assembly of the Company was held on April 21, 2021, at which decisions were made according to the decisions proposed by the Management Board and the Supervisory Board of the Company contained in the invitation to the General Assembly and published in its prescribed content on the website of the Zagreb Stock Exchange, as well as on the Company's website.
The following decisions were reached: decision on coverage of loss, decision on granting discharge to members of the Management Board, decision on granting discharge to members of the Supervisory Board, decision on appointment of auditors and decision on election of members of the Supervisory Board. The Report on Receipts of Members of the Management Board and the Supervisory Board for 2020 was also discussed.
The General Assembly elected six members of the Supervisory Board for a new term of 4 years starting on 16 June 2021, namely Mr. Gustav Wurmböck, Mr. Franz Lanschützer, Mr. Mladen Markoč, Mr. Georg Eltz (former members), Mr. Boris Galić and Mr. Daniel Goldscheider (new members). The constituent meeting of the Supervisory Board, at which the President, Mr. Gustav Wurmböck, and the Deputies, Mr. Franz Lanschützer and Mr. Mladen Markoč, were elected, was held on June 17, 2021.
THE NEW COMPOSITION OF THE SUPERVISORY BOARD STARTED WORKING
The Management Board hereby presents the unaudited quarterly financial statements for the second quarter of 2021 and for the first half-year.
The Group's income statement for the reported and previous period consolidates the following companies: Imperial Riviera d.d.2, Valamar A GmbH, Valamar Obertauern GmbH, Palme Turizam d.o.o. (subsidiary until 7 May 2021, date of merger into the Valamar Riviera d.d. taking effect on 8 May 2021), Magične stijene d.o.o., Pogača Babin Kuk d.o.o. and Bugenvilia d.o.o.
The Group's balance sheet for the reviewed period as at 31 December 2020 and as at 30 June 2021 consolidtes the aforementioned companies.
The investment in company Helios Faros d.d. is conducted according to the equity method, since Valamar Riviera has no control over it, but significant influence.
2 On 28 June 2019 the company Hoteli Makarska was merged to the company Imperial Riviera.
The Management Board presents the quarterly financial statements for the second quarter and the first halfyear of 2021.
Krk Premium Camping Resort 4*, Krk island
| 1 - 6/2020 | 1 - 6/2021 | 2021/2020 | |
|---|---|---|---|
| Total revenues | 133.783.405 | 290.973.816 | 117,5% |
| Operating income | 124.199.713 | 266.400.722 | 114,5% |
| Sales revenues | 109.249.000 | 249.034.083 | 128,0% |
| Board revenues (accommodation and board revenues)4 | 84.020.878 | 199.685.650 | 137,7% |
| Operating costs5 | 226.211.101 | 233.216.702 | 3,1% |
| EBITDA6 | -107.935.193 | 25.900.160 | -124,0% |
| Extraordinary operations result and one-off items7 | -961.513 | 6.257.893 | -750,8% |
| Adjusted EBITDA8 | -106.973.680 | 19.642.267 | -118,4% |
| EBIT | -358.363.745 | -224.627.278 | -37,3% |
| Adjusted EBIT8 | -357.402.232 | -230.885.171 | -35,4% |
| EBT | -442.570.885 | -235.880.714 | -46,7% |
| 31/12/2020 | 30/6/2021 | 2021/2020 | |
| Net debt9 | 2.851.116.054 | 2.754.248.094 | -3,4% |
| Cash and cash equivalents | 665.932.900 | 627.740.104 | -5,7% |
| Market capitalization10 | 3.730.415.243 | 3.806.031.768 | 2,0% |
| 1 - 6/2020 | 1 - 6/2021 | 2021/2020 | |
|---|---|---|---|
| Number of accommodation units (capacity) | 21.247 | 21.328 | 0,4% |
| Number of beds | 58.492 | 58.617 | 0,2% |
| Accommodation units sold | 205.116 | 452.833 | 120,8% |
| Overnights | 363.128 | 851.183 | 134,4% |
| ADR13 (in HRK) | 410 | 441 | 7,6% |
EV11 7.283.342.226 7.243.851.745 -0,5%
THE GROUP /continued
851,183 overnight stays were realized in the first six months of 2021, which is an increase of 134% compared to the same period in 2020.
Due to the strong impact of the COVID-19 pandemic in the first quarter of 2021, the number of overnight stays decreased. Valamar Diamant Hotel & Residence was opened, which tactically shifted from the regional to the Croatian market, especially weekend stays, and focused on professional domestic and foreign sports groups that did not have indoor training bans and cycling groups in the region. Valamar Obertauern Hotel in Austria was completely closed for the entire 2020/21 ski season. In the same period, two camps for year-round operations were opened with the introduction of special offer "extended stay" (14 and 30 days).
In the second quarter, the trend was reversed and a significant increase in the number of overnight stays was achieved, although measures related to the suppression of the pandemic in Europe
RESULTS OF THE GROUP /continued
were still in force. This is primarily a consequence of the great desire of tourists to travel after a long period of restrictions, and yet a somewhat less restrictive policy of crossing state borders and related quarantines.
In the first six months of 2021, total revenues amounted to HRK 291.0 million, which is an increase of 117.5% (HRK 157.2 million). The realized total revenues were influenced by:
a) growth of sales revenues by 128.0% (HRK 140.0 million) to the amount of HRK 249.0 million, which consists primarily of revenues from board revenue (HRK 199.7 million) following certain improvements in tourism flows as explained earlier.
There has been a slight change in the revenue structure. Sales revenues in the country amount to HRK 55.3 million with a share of 22.2% in sales revenues (18.2% in the same period in 2020) and are higher by HRK 35.5 million compared to the comparable period in 2020. With a share of 77.8% in sales revenues (81.8% in the same period in 2020), sales revenues on foreign markets amount to HRK 193.7 million and are higher by HRK 104.3 million.
b) increase in other operating revenues by 17.4% to HRK 17.2 million compared to the same period in 2020, mainly due to higher revenues from the cancelation of provisions for litigation
c) financial income amounts to HRK 24.6 million and is higher by 156.4% than those realized in the same period in 2020 as a result of the increase in net positive exchange rate differences on long-term loans.
| (in HRK) | 1 - 6/2020 | 1 - 6/2021 | 2021/2020 |
|---|---|---|---|
| Operating costs15 | 226.211.101 | 233.216.702 | 3,1% |
| Total operating expenses | 482.563.458 | 491.028.000 | 1,8% |
| Material costs | 83.160.816 | 117.392.388 | 41,2% |
| Staff cost | 96.996.224 | 81.148.405 | -16,3% |
| Depreciation and amortisation | 250.154.456 | 250.508.368 | 0,1% |
| Other costs | 48.026.127 | 37.297.887 | -22,3% |
| Provisions and value adjustments | 274.096 | 19.070 | -93,0% |
| Other operating expenses | 3.951.739 | 4.661.882 | 18,0% |
Total operating expenses in the first six months of 2021 amounted to HRK 491.0 million, which is 1.8% more than in the same period last year. Development of operating expenses:
a) material costs amount to HRK 117.4 million and are higher by 41.5% as a result of increased costs of raw materials and materials and costs of promotional activities in accordance with the increased business volume.
b) staff costs decreased by 16.4% and amounted to HRK 81.1 million. The reduction resulted from a longer period of using support measures of the Government of the Republic of Croatia to preserve jobs and implementation of "Pause, restart program" (6 months in 2021, 3 months in 2020).
Total COVID grants related to employee cost subsidies are included in the amount of HRK 87.8 million for the Group (same period in 2020: HRK 53.7 million) and HRK 72.7 million for the Company (same period in 2020: HRK 46.4 million).
c) depreciation amounts to HRK 250.5 million, which represents an increase of 0.1%
d) other expenses fell by 22.4% to HRK 37.3 million. The decline is a consequence of the savings measures taken in the Group, lower utility costs and the absence of rental costs for tourist land in the first six months of 2021. Property insurance costs are also lower in this period, because last year the total cost for the entire 2020 was recorded in the first quarter of 2020 when paying them and this year it is distributed over 12 months.
e) provisions and value adjustments amount to HRK 19 thousand.
f) other operating expenses amount to HRK 4.7 million, which is an increase of 18.0%.
14 Classified according to Quarterly Financial Statements standard (TFI POD-RDG).
15 Operating costs include material costs, staff costs, other costs, and other operating costs reduced by extraordinary expenses and one-off items.
A positive adjusted EBITDA in the amount of HRK 19.6 million was achieved, which is an improvement of HRK 126.6 million compared to the negative adjusted EBITDA realized in the first half of 2020 in the amount of HRK -107.0 million. The main reasons for this are: adjustment of work to the conditions of the pandemic within the Group in the first half of 2021, which includes general business rationalization and internal savings measures, longer period of using support measures of the Government of the Republic of Croatia to preserve jobs and implementation of "Pause, restart program" (6 months in 2021, 3 months in 2020) and a significant increase in revenue.
After a better net financial result in the first half of 2021 related to exchange rate movements (explained in more detail in the next section), a significant improvement in profit before tax (EBT) was achieved in the amount of HRK 206.7 million. Thus, the negative EBT in 2021 amounted to HRK -235.9 million after the negative EBT of HRK -442.6 million in the same period in 2020.
RESULTS OF THE GROUP /continued
In the first half of 2021, the financial result amounts to HRK -9.6 million (HRK -83.1 million in 2020).
The main reasons for HRK 73.5 million better financial result compared to the previous comparable period are primarily found in i) increase in net foreign exchange gains (primarily unrealized on long-term loans) by HRK 62.6 million, given that in the first half of 2021 there was no strong depreciation of the kuna against compared to the same comparable period last year, ii) the absence of unrealized losses on financial assets in the amount of HRK 16.1 million incurred in the first half of 2020 due to then increased liabilities at fair value of contracted FX forward transactions due to strong depreciation of the kuna against the euro and iii) increase in financial expenses based on interest on long-term and short-term loans in the amount of HRK 2.2 million due to the financing of intensive capital investments and the provision of new liquidity sources.
Financial income and expenses
16 Net debt: non-current and current liabilities to banks and other financial institutions + liabilities for loans, deposits and other + other liabilities according to IFRS 16 (leases) – cash and cash equivalents – long-term and short-term investments in securities – current loans given, deposits, etc.
17
RESULTS OF THE GROUP /continued
On 30.6.2021. the total value of the Group's assets amounted to HRK 6,750.6 million, which is 1.9% less than on 31 December 2020. Total share capital and reserves amount to HRK 2,689.3 million and are lower by 6.1% as a result of the loss realized in the first half of the year.
Total long-term and short-term liabilities to banks and other financial institutions as at 30.6.2021. amount to HRK 3,368.0 million and are lower by 3.9% compared to 31.12.2020. as a result of repayment of shortterm loans. A large part of the loan portfolio (82%) consists of long-term loans with an agreed fixed interest rate, ie loans protected by derivative instruments (IRS) for the purpose of hedging against interest rate risk. In 2020, the Group deferred the payment of a total of HRK 349 million of principal to commercial banks and the Croatian Bank for Reconstruction and Development, of which HRK 272 million represents deferred payment of principal for 2020, HRK 49 million for the first quarter of 2021 and HRK 27 million kuna for the second quarter of 2021. In addition, the payment of interest in the total amount of around HRK 47 million was postponed.
On 30.6., after the expiration of the moratorium period with commercial banks, the Group began regular repayment of credit liabilities.
On 30.6.2021. the Group's cash balance amounts to HRK 627.7 million (HRK -38.2 million compared to 31 December 2020), together with i) agreed credit lines and moratoriums on credit obligations, ii) valuable tourist assets and iii) strong operating business model make Group's stable balance sheet position.
| HOTELS AND RESORTS OVERVIEW | LOCATION | KEYS | CAMPING RESORTS OVERVIEW | LOCATION | KEYS | ||
|---|---|---|---|---|---|---|---|
| Hotels and Resorts |
9.292 | Camping Resorts |
|||||
| VALAMAR COLLECTION | 1.261 | CAMPING ADRIATIC BY VALAMAR - PREMIUM |
|||||
| Marea Valamar Collection Suites |
5* | Poreč | 108 | RESORTS | 5.352 | ||
| Imperial Valamar Collection Hotel |
4* | Rab Island | 136 | Istra Premium Camping Resort by Valamar |
5* | Poreč | 874 |
| Dubrovnik President Valamar Collection Hotel |
5* | Dubrovnik | 292 | Lanterna Premium Camping Resort by Valamar |
4* | Poreč | 2.930 |
| Isabella Valamar Collection Island Resort |
4 / 5 | Poreč | 334 | Krk Premium Camping Resort by Valamar |
5* | Krk Island | 500 |
| Girandella Valamar Collection Resort |
4 / 5 | Rabac | 391 | Ježevac Premium Camping Resort by Valamar |
Krk Island | 632 | |
| Pinea Valamar Collection Resort |
5* | Poreč | 0 | Padova Premium Camping Resort by Valamar |
4 4 |
Rab Island | 416 |
| VALAMAR HOTELS & RESORTS | 3.964 | CAMPING ADRIATIC BY VALAMAR - RESORTS |
4.555 | ||||
| Valamar Riviera Hotel & Residence | 4* | Poreč | 132 | Orsera Camping Resort by Valamar |
Poreč | 592 | |
| Valamar Tamaris Resort | 4* | Poreč | 507 | 3* | 1.824 | ||
| Valamar Parentino Hotel |
4* | Poreč | 329 | Solaris Camping Resort by Valamar |
3* | Poreč | |
| Valamar Bellevue Resort |
4* | Rabac | 372 | Marina Camping Resort by Valamar |
4* | Rabac | 329 |
| Valamar Diamant Hotel & Residence |
3/4 | Poreč | 372 | Baška Beach Camping Resort by Valamar |
4* | Krk Island | 593 |
| Valamar Pinia Hotel |
3* | Poreč | 170 | Bunculuka Camping Resort by Valamar |
4* | Krk Island | 408 |
| Valamar Sanfior Hotel & Casa |
4* | Rabac | 242 | San Marino Camping Resort by Valamar |
4* | Rab Island | 809 |
| Valamar Atrium & Villa Adria |
4 / 5 | Krk Island | |||||
| Valamar Carolina Hotel & Villas |
4* | Rab Island | 92 | CAMPING ADRIATIC BY VALAMAR - SUNNY |
1.650 | ||
| Valamar Padova Hotel | 4* | Rab Island | 176 | Brioni Sunny Camping by Valamar |
2* | Pula | 734 |
| Valamar Meteor Hotel | 4* | 175 | Tunarica Sunny Camping by Valamar |
2* | Rabac | 160 | |
| Valamar Argosy Hotel |
Makarska | 268 | Škrila Sunny Camping by Valamar |
3* | Krk Island | 342 | |
| Valamar Lacroma Dubrovnik Hotel |
4* | Dubrovnik | 308 | Solitudo Sunny Camping by Valamar |
3* | Dubrovnik | 414 |
| 4* | Dubrovnik | 401 | |||||
| Valamar Club Dubrovnik Hotel Valamar Obertauern Hotel |
3 4 |
Dubrovnik Austria |
338 82 |
||||
| [PLACES] by Valamar |
|||||||
| Hvar [PLACESHOTEL] by Valamar |
3* | Hvar Islan | 179 179 |
||||
| SUNNY BY VALAMAR | 3.888 | ||||||
| Lanterna Sunny Resort by Valamar |
2* | Poreč | 606 | ||||
| Allegro Sunny Hotel & Residence by Valamar |
3* | Rabac | 180 | ||||
| Corinthia Baška Sunny Hotel by Valamar |
3* | Krk Island | 431 | ||||
| San Marino Sunny Resort by Valamar |
3* | Rab Island | 457 | ||||
| Eva Sunny Hotel & Residence |
2* | Rab Island | 284 | ||||
| Dalmacija Sunny Hotel by Valamar |
3* | Makarska | 190 | ||||
| Rivijera Sunny Resort by Valamar |
2* | Makarska | 258 | ||||
| Tirena Sunny Hotel by Valamar |
3* | Dubrovnik | 208 | ||||
| Trim & Helios Sunny Apartments by Valamar |
2* | Hvar Islan | 85 | ||||
| Crystal Sunny Hotel by Valamar |
4* | Poreč | 223 | ||||
| Rubin Sunny Hotel by Valamar |
3* | Poreč | 253 | ||||
| Miramar Sunny Hotel & Residence by Valamar |
3* | Rabac | 178 | ||||
| Zvonimir Sunny Hotel by Valamar |
4* | Krk Island | 85 | ||||
| Koralj Sunny Hotel by Valamar |
3* | Krk Island | 194 | ||||
| Arkada Sunny Hotel by Valamar |
2* | Hvar Islan | 256 | ||||
19
54% OF ACCOMMODATION UNITS ARE IN THE PREMIUM AND UPSCALE SEGMENT
In the first half of 2021, total revenues recorded a growth of 120.0% to the amount of HRK 253.5 million.
Sales revenues amount to HRK 219.0 million with a share in total revenues of 86.4%. Compared to the same period last year, they are higher by 134.5% as a result of more suppressed pandemic compared to the first half of 2020.
Sales revenues in the country amount to HRK 48.8 million with a share of 22.3 in total revenues (23.4% in 2020) and are higher by 122.9% compared to the previous comparable period. Revenues from sales on foreign markets amount to HRK 170.2 million with a share of 77.7% in total revenues (76.6% in 2020). Compared to the previous comparable period, they are higher by 138.1%.
Material costs amounted to HRK 106.1 million with a growth of 44.1% as a result of increased business volume. Staff costs amount to HRK 72.3 million and are 14.7% lower than in the same period last year. This resulted from a longer period of using support measures of the Government of the Republic of Croatia to preserve jobs and implementation of "Pause, restart program" (6 months in 2021, 3 months in 2020).
Depreciation amounts to HRK 196.4 million and is lower by 1.4% compared to the comparable period last year. Value adjustments and provisions amount to a negligible HRK 19.1 thousand.
In the first half of 2021, the financial result amounts to HRK -7.5 million (HRK -76.5 million in 2020). The main reasons for the HRK 69.0 million better financial result compared to the previous comparable period are primarily found in i) increase in net foreign exchange gains (primarily unrealized on long-term loans) by HRK 57.9 million, given that in the first quarter of 2021 there was no strong depreciation of the kuna against EUR compared to the same comparable period last year, ii) the absence of unrealized losses on financial assets in the amount of HRK 16.1 million incurred in the first half of 2020 due to increased liabilities at fair value of contracted FX forward transactions due to strong depreciation of the kuna against the euro and iii) increase in financial expenses based on
IMPROVEMENT OF EBITDA COMPARED TO THE COMPARABLE PERIOD IN 2020
interest on long-term and short-term loans in the amount of HRK 2.1 million due to the financing of intensive capital investments and the provision of new liquidity sources.
Positive EBITDA amounted to HRK 16.8 million, which is an improvement of HRK 114.4 million compared to negative EBITDA realized in the first half of 2020 at the level of HRK -97.5 million. The main reasons for this are the general rationalization of operations and above explained development related to "Pause, restart program" and support measures by the Government of the Republic of Croatia to preserve jobs.
Total assets of the Company on 30.6.2021. amount to HRK 5,760.1 million and is lower by 3.3% compared to 31.12.2020.
Valamar's strategy for the development of tourism products and high added-value amenities is one of the main drivers of growth and sustainable business continuity. The strategy is steered by sustainability and social responsibility while investing in products, employees and tourist destinations. Furthermore, Valamar's service concepts are continuously being developed to align the offer with current market requirements, primarily guests' trends and expectations. With a timely and thorough approach to mitigating and controlling the adverse effects caused by the COVID-19 pandemic, a customized business plan was introduced in all business segments, including investments.
The planned portfolio repositioning and development of high added-value products and services, with emphasis on the premium segment of resorts and camping resorts, has been adjusted by reducing investment intensity all while preparing new growth and development projects when the conditions are met. In order to align the hospitality portfolio plan and development with the current tourism flows and the proactive approach to cash flow management and financing, the investments in 2021 will mostly be focused on the completion of projects and raising service quality and guest satisfaction.
Considering the reduced investment intensity, the total approved investments of the Valamar Group amounts to HRK 164 million in 2021. As last year, Valamar Group will continue to adapt its products and develop digitization projects to further enhance service quality and guest safety in the upcoming tourist season. At Group level, a total of HRK 16 million has been provided for health and safety, as well as digitalization and innovation projects. Investments in this segment include the continuation of projects from 2020, and relate to the automation of processes and systems such as improving the Online Reception and "self check-in" system, automating gate
INVESTMENTS /continued
barriers, improving Valfresco Direkt online store services and other similar projects aimed at enhancing guest's health and safety services. HRK 17 million has been provided for smaller investments and the purchase of new equipment and furniture, while the remaining amount has been directed towards the completion of initiated investments in construction works and the preparation of future investments.
Valamar Riviera provided HRK 123 million for the 2021 investment cycle, and in addition to investments aimed at enhancing and implementing the the program for guests' health and safety, the company focused on investments in Istra Premium Camping Resort 5*. Considering the current consumer trends and preferences, this is a particularly attractive accommodation category, which represents a specific product of high guest loyalty, especially due to the perception of reduced health risks. Given the high occupancy rate of Istra Premium Camping Resort 5* in 2020 despite the unfavorable circumstances, the amount of HRK 10 million has been invested in enhancing service quality in 2021, mostly in the Glamping zone and food and beverages facilities.
Service quality has also been enhanced through targeted investments in three Valamar hotels. These include improvements of the exterior and interior of the Champagne Breakfast & Brunch restaurant and Spinnaker restaurant at the Valamar Riviera Hotel in Poreč, which will enhance the
IN YEAR 2021 INVESTMENTS ARE FOCUSED ON COMPLETION OF STARTED PROJECTS new Old Town Holiday label within the Valamar Hotels & Resorts brand. Investments in this category include the promotion of the Sunny by Valamar economy brand. As part of its rebranding, the Miramar Sunny Hotel has improved Breakfast & Lunch services, the Valfresco 24/7 service available to guests, a digital library and the Chill & Play Zone which makes digital books and fun games available to guests. In addition to the above, the investment includes a self-service laundry and 30 rearranged accommodation units. Investments in the Rubin Sunny Hotel are focused on renovating interior public spaces.
Considering the aforementioned optimized investment plan in accordance with the current circumstances, sufficient funds have been provided for the completion of the first phase of investment in Valamar Pinea Collection Resort, while the accommodation for employees in Dubrovnik has been completed.
Planned investments in 2021 at the level of Imperial Riviera amount to HRK 41 million and mostly relate to the final phases of investment projects in Valamar Meteor Hotel and Valamar Parentino Hotel, which were postponed due to the previously mentioned extraordinary circumstances caused by the COVID-19 pandemic.
By investing in the Valamar Parentino Hotel, the main finalized projects include the renovation of 40 accommodation units, a children's playground, a pool bar, parking lot and landscape design. The investment in Valamar Meteor Hotel was marked by the completion of the second phase of investment, which mainly includes the renovation of 166 accommodation units, corridors and stairs, the refurbishing of the Reception and Lobby area, the construction of a new outdoor pool complex, renovation of the indoor pool area, as well as the MICE zone and VIP parking lots.
Tourism is a global industry, closely connected with the real and financial economy, geopolitical position and environmental sustainability. The integrity of this industry will determine its future growth. Given the importance of tourism and its overall impact on society, the Company and the Group monitor and assess risks at micro and macro levels. Moreover, when defining the strategy, particular attention is given to the short and medium–term risk impact in order to maintain business sustainability over time.
When monitoring and assessing risks the Company and Group use a proactive approach thus assessing the potential impact of each individual risk. The Company and Group consider risk management to be a key factor of differentiation among competitors. Risk management aims at creating sustainable value, thus offering reliability and security to numerous stakeholders.
There are five key steps in a risk management process:
1) Identifying potential risks;
2) Assessing identified risks;
5 KEY STEPS IN RISK MANAGEMENT PROCESS
3) Determining actions and responsibilities for efficient risk management; 4) Monitoring and overseeing preventive actions;
5) Exchanging information on risk management results conducted by the Management board.
The different types of risks facing Valamar Riviera can be classified into the following groups:
• Financial risks - related to financial variables, can have a negative impact on meeting liabilities for the company and the Group, liquidity, debt management etc.;
• Business risks - related to the way company business is conducted in terms of supply and demand, competition, adapting to market trends, investments, growth etc.;
• Operational risks - can arise from inadequate use of information, errors in business operations, non-compliance with internal procedures, human error, IT system, financial reporting and related risks, etc.;
• Global risks - can arise from natural disasters, pandemics, food shortage, social unrest, wars and other force majeure events beyond Valamar Riviera's control;
• Compliance risks - can arise from failure to comply with state laws and local regulations; risks related to changes in tax and other regulations.
In their day-to-day business activities, the Company and Group face a number of financial threats, especially:
1) Foreign exchange risk; 2) Interest rate risk; 3) Credit risk; 4) Price risk; 5) Liquidity risk; 6) Share-related risks.
The Company and Group have a proactive approach in mitigating interest rate and foreign exchange risks, by employing available market instruments. Internal risk management goals and policies aim at protecting foreign currency inflows during seasonal activity and partial interest hedging of the principal loan amount.
The Company and Group conduct their business operations across national borders and are exposed to foreign exchange risks. They mainly result from changes in the euro/ kuna exchange rate. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities. Historically, most of our foreign revenue has been in euros, the currency in which the majority of our long-term debt is denominated. Hence, for the most part the Company and Group are naturally hedged from exchange rate risks. Since some liabilities are contracted in kunas, the Company and Group actively manage risks by using derivative instruments available on the financial market. The instruments are used according to operating assessments and expected market trends. In this way the cash flows are protected from the risk impact. Due to the emergence of exceptional circumstances caused by the COVID-19 pandemic in the first quarter of 2020, potentially strong depreciation pressures against the kuna/ euro currency pair affect the value of euro-denominated long-term debt and contractual forward transactions whose potential negative effects are sought to be controlled by the proactive management of agreed derivative financial instruments. In the event of a drastic decrease of euro inflows, the Company and the Group will use existing euro liquidity reserves to service the long term debt repayments and make adequate use of financial protection instruments, in accordance with the current state and future assessment of the Company's and the Group's foreign exchange position, expectations of movements in the value of the kuna/euro currency pair as well as other intercurrent relationships among world currencies.
Variable rate loans expose the Company and Group to cash flow interest rate risk. Actively, the Company and Group resort to derivative instruments in order to hedge cash flow and interest rate by applying interest rate swaps. The economic effect of such swaps is the conversion of variable interest rate loans into fixed interest rate loans for a precommitted hedged part of the loan principal. Therefore, a major part of the loan portfolio (over 80%) is comprised of long-term fixed interest loans or, respectively, loans hedged by a derivative instruments (IRS). The Company and Group have interest-bearing assets (cash assets and deposits) so their revenue and cash flow depend on changes in market interest rates. This becomes evident especially during the season when the Company and Group have significant cash surpluses at their disposal. The Company and the Group expect a limited impact from the increased interest rate volatility consequent to the recent coronavirus pandemic, since a large portion of the Group's loan portfolio (82%) is made up of long-term fixed-rate loans, i.e. loans protected by derivative instruments (IRS).
Credit risk arises from cash assets, time deposits and receivables. According to the Company and Group sales policy, business transactions are conducted only with customers with suitable credit history, i.e. by agreeing advances, bank securities and (for individual customers) payments made through major credit card companies. In order to reduce credit risk, the Company and the Group continuously monitor their exposure to the business parties and their creditworthiness, obtain instruments for securing receivables (bills of exchange, debentures and guarantees), thus reducing the risks of uncollectability of their receivables for the services provided. In view of the negative effects of COVID-19 on the customers of the Company and the Group, especially tour operators and travel agencies, the impact of the currently unfavorable circumstances on the related parties is being closely monitored, while actively reviewing the credit ratings and their potential to overcome current challenges.
The Company and Group hold equity securities and are exposed to equity price risk due to security price volatility. Valamar Riviera is not an active participant in the market trade in terms of trading in equity and debt securities. However, with investments in buying Imperial Riviera and Helios Faros shares, the company is exposed to the said risk to a certain extent.
The Company and Group have a sound liquidity risk management. Sufficient funds for meeting liabilities are available at any given moment through adequate amounts from contracted credit lines and by ensuring credit line availability in the future. Liquidity risk is managed by generating strong positive net operating cash flows, while capital investments are financed by credit lines. Credit lines for 2020 and 2021 have been contracted with reputable financial institutions, while credit repayments in general are in line with the period of significant cash inflows from operating activities. The repayment of the major credit lines coincides with periods of strong cash inflows from operations. The Company and Group monitor the level of available funds through daily cash and debt reports. Long-term cash flow forecasts as well as annual (monthly) forecasts are based on the set budget. After meeting the needs of working capital management the surplus is deposited in the treasury. From there the funds are invested in interest-bearing current accounts, time deposits, money market deposit accounts and marketable securities. Only instruments with suitable maturities and sufficient liquidity are selected, according to the forecast needs for liquid funds.
COVID-19 pandemic, as an external stressor to the operations of the Company and the Group, will create uncertain pressures on operating cash flow. In accordance with prudent management of the now increased liquidity risk, escalation plans for minimizing costs, maintaining liquidity, solvency of the company and maintaining business continuity were developed and activated, together with applications for support measures and assistance to the economy and the tourism sector, including temporary deferral of payment of overdue principal on long-term loans in accordance with the given opportunity of a moratorium on the repayment of credit obligations.
The market value of shares is the riskiest asset class due to its volatility resulting from the volatile nature of the whole capital market, macroeconomic trends on markets where the Company and Group operate and discrepancies between the expectations of financial analysts and the actual results. Furthermore, other contributing factors are also changes in the dividend policy, various activities in the segment of consolidations, mergers, acquisitions and forming of strategic partnership, the instability of the business model of the Company and Group as well as the fluctuations in the financial results for the Company and Group. In case any negative implications happen to be associated with these factors there is a considerable risk of market value drop that will in turn prevent investors from selling their shares at a fair market price.
The Company and Group are constantly exposed to risks threatening its competitiveness and future stability. Since the Company and Group own significant number of real estates, this business model requires a large amount of capital in order to maintain high product and service standards. Various large capital investments in the upgrade of products and services can surpass budget expectations, delay the end of construction works, as well as the town-planning regulations and fiscal policy may be changed. These risks can increase costs for the Company and Group, and have a negative impact on the cash flow and revenues. In the previous period, the company and Group's business decisions improved their results and operating efficiency in the demanding Mediterranean market. These positive trends are expected to continue in the future through a prudent long-term strategic management.
Over 95% of Valamar Riviera's guests come from other countries and they are very careful when choosing their vacation destination in the competitive Mediterranean environment. Stable domicile countries macroeconomic indicators are important decision-making factors especially those relating to exchange rates and the price of goods and services because they directly affect the guests' purchasing power. However small, the share of domestic guests is also important; it is a segment directly influenced by various other macroeconomic indicators: employment/ unemployment rate, GNP rise/
fall, industrial production and others. They all have a direct impact not only on the purchasing power of Croatian residents but they also determine whether they will choose to spend their vacation on the Adriatic.
When considering risks related to the tourism and hospitality industry, in previous years, the Croatian economy has been afflicted by the consequences of a global financial crisis and economic standstill. In this period, the tourism and hospitality industry has been among the rare growing industries in Croatia. Moreover, the marked seasonality of this industry leads to insufficient use of the Company and Group's resources. After joining the European Union, the Croatian market became part of a large European market, while safety risks decreased after joining the NATO.
Good management of human resources is vital for the future growth of the Company and Group. Risks related to shortages of specific skills, expertise and jobs are connected with the opening and expansion of the labor market. Valamar Riviera is one of the largest and most desirable employers in tourism. The active approach towards HR management develops key talents and supports investments in training opportunities. We determine the needs for new skills and expertise by following emerging global trends in tourism. In this way, we are able to respond to challenges effectively. Through a continual dialogue with our social partners, we have ensured a high level of workers' rights in terms of competitive salaries, reward systems, career development, employees' wellbeing and cooperation with training institutions from all parts of Croatia.
Operational risks are risks connected with direct or indirect losses that arise form inadequate or wrong internal or external processes within the Company and the Group. They include the creation and analysis of financial reporting data (also known as "financial reporting risk") and also the potential insufficient and inadequate internal and external information sharing. When implementing the system of operational risk management, the Company and Group focused on its continuity and complexity due to the size of the organization. The benefits of the system include i) defining and identifying the Company and Group risk profile in relation to the operating risk ii) identifying and managing the known risk occurrences in order to decrease the Company and Group costs and iii) data analysis which indicates the business trends for the Company and Group and trends in the domestic economy.
The Company and Group are aware of the reliability of IT business solutions and safety in the cyber world. Hence, they continually upgrade, develop and implement new technologies in everyday business operations. A special focus is given to providing sufficient resources for the development and implementation of new technologies related to ICT, data protection, and upgrade of the current business systems and implementation of new ones.
Despite improved security and political conditions, which have encouraged to a certain extent investments into tourism and hospitality, there are challenges that the Croatian tourism has to face, such as:
Environmental risks can also have an adverse effect on the Company and Group's business results, primarily in terms of customer satisfaction with the whole experience while staying at one of Valamar's properties and this can affect the number of arrivals. The possible risks can include: sea pollution (caused by oil or chemical spillage), but also long-term water quality reduction and coast pollution due to inadequate waste disposal and waste water treatment as well as extensive use of agricultural fertilizers. Other environmental conditions typical for climate changes such as long drought periods or long rainy periods can directly influence the guests' length of stay in the hotels and campsites as well as increasing the operating costs. A number of other natural disasters and calamities (earthquakes, fires, floods and rainstorms), air pollution caused by toxic gas emissions from industrial plants and vehicles, as well excessive
urbanization and the introduction of plant and animal invasive species should also be taken into consideration. Likewise, disease outbreaks and pandemics can adversely affect Valamar's business results. In order to minimize their impact, Valamar is actively tracking pandemic and health risk levels worldwide, especially on its source markets, and taking proactive steps in their management. The COVID-19 pandemic is a recent example of the operational and financial disruption to the global economy, especially tourism flows, since almost all global destinations are blocked by travel restrictions. The emergence of exceptional circumstances in the Republic of Croatia and the introduction of extraordinary measures to prohibit gatherings, movements and the operation of restaurants and shops, all with the primary objective of protecting the population from the risk of contagion, resulted in the expected consequential and immediate disruption of the Company's and the Group's operations, cancellation of accommodation and other contracted services by partner agencies and guests.
Changes in tax laws and other regulations pose a very serious threat and represent a demanding segment in risk management because in this particular situation the possibilities for the Company and Group are limited. In previous years, there has been a number of important changes in tax and non-tax charging regulations, which have adversely affected the Company and Group profitability:
• In March 2012 the standard VAT rate grew from 23% to 25%, in January 2013 a new 10% VAT rate was introduced only to be replaced within a year by a 13% VAT rate applicable to the tourism and hospitality industry (January 2014), while in January 2017 a new 25% VAT rate was introduced for F&B (a la carte) services;
per person per overnight, depending on the class of the destination and utilization period;
• In January 2020 the VAT rate for a la carte food services was reduced from 25% to 13%.
Such frequent changes in laws regulating taxes and parafiscal charges often take place only after the business policy and budget for the next financial year have been approved and commercial terms and conditions with partners agreed. All this jeopardizes the Company and Group financial position and future investment plans as well as credibility towards shareholders. The Company and Group are also threatened by changes in regulations governing concession fees for maritime domain and tourism land use, the latter still presenting unresolved legal issues. Given the nature of the Company and Group's business, the right to use parts of the maritime domain as well as land for tourism purposes is of vital importance for future growth, especially for campsite-related operations.
The Company and the Group continuously strive to develop and operate according to good practices of corporate governance. The business strategy, corporate policy, key corporate regulations and business practice have set a high standard of corporate governance and are all geared towards creating a transparent and efficient business operation while forging solid bonds with the local community. The Management Board fully complies with the provisions of the adopted Corporate Governance Act. After the company was listed on the regulated market of the Zagreb Stock Exchange, the Company has also complied with the Zagreb Stock Exchange Governance Code. The Company respects and implements the prescribed corporate governance measures (as reported in detail in the prescribed annual questionnaire and published as prescribed on the Zagreb Stock Exchange and Valamar Riviera websites). The Company has harmonized its general corporate governance acts with the Corporate Governance Code to the applicable extent.
Since the beginning of the COVID-19 pandemic, Valamar Riviera has actively engaged in mitigating and controlling potential risks. On 2 March 2020 it formed the Risk Management Committee and adopted the Risk Management Rules. The Committee, tasked with assessing risk events and impacts on operations, guests and employees, determines the measures necessary to protect guests, employees and assets and organize business processes and operations. Depending on circumstances and risk intensity, the Committee decides on: adjusting the financial, business and contingency plan, the activation of escalation plans to safeguard company liquidity and solvency and maintain business continuity, and on other measures according to booking and revenue estimates. The Supervisory Board Presidium receives the Committee's reports on the current state, activities and estimated risk impact on the Company's operations at least once a month or more often as circumstances dictate. The Risk Management Committee consists of the Management Board (Željko Kukurin, President and Marko Čižmek, Member), Division Vice Presidents (Alen Benković, Davor Brenko, Ivana Budin Arhanić and David Poropat), Human Resources Director (Ines Damjanić Šturman) and Legal Affairs Head (Vesna Tomić).
The major direct Valamar's shareholders according to the Central Depository and Clearing Company data and the shareholders whom are Valamar's Management Board and Supervisory Board members are as follows: the Chairman of the Supervisory Board, Mr. Gustav Wurmboeck, holds a 100% stake in Wurmböck Beteiligungs GmbH, which holds 25,017,698 RIVP-R-A shares; the Deputy
TIMELY AND ACTIVE APPROACH TO CRISIS MANAGEMENT CAUSED BY THE COVID-19 PANDEMIC
Chairman of the Supervisory Board, Mr. Franz Lanschuetzer, holds 4,437,788 RIVP-R-A shares; the Deputy Chairman of the Supervisory Board, Mr. Mladen Markoč, holds 17,000 RIVP-R-A shares; the Member of the Supervisory Board Mr. Georg Eltz holds a total of 6,545,367 RIVP-R-A shares, of which directly 20,463 RIVP-R-A shares, and indirectly through a 100% stake in company Satis d.o.o. 6,524,904 RIVP-R-A shares; the President of the Management Board, Mr. Željko Kukurin, holds 126,360 RIVP-R-A shares; and the Member of the Management Board Mr. Marko Čižmek holds 53,128 RIVP-R-A shares. The Company defined the process of preparing and disclosing financial reports in a detailed internal document. With this, the financial reporting procedure is set within a system of internal review and risk management. Moreover, in order to monitor and mitigate the financial reporting risk, the Company uses the measures described in "The Risks of the Company and the Group".
The Companies Act and the Company Statute define the General Assembly's authority and prescribe how it meets and works. The meeting invitation, proposals and the adopted resolutions are made public according to the provisions of the Companies Act, Capital Market Act and the Zagreb Stock Exchange Rules. There is a time limit related to the voting right at the General Assembly: according to the provisions of the Croatian Companies Act, shareholders are required to register their participation within the prescribed time limit in order to attend the General Assembly. Under no circumstances can the financial right arising from securities be separated from holding the securities. There are no securities with special control rights nor are there any limitations to voting rights at the Company (one share, one vote).
The Company Statute complies with the Croatian Companies Act and the provisions of the Procedure of appointment, i.e. the election and profile of the Management Board and the Supervisory Board and defines the procedure of appointing and recalling members of the Management Board and Supervisory Board. There are no limitations based on gender, age, education, profession or similar. The Companies Act determines any amendments to the Company Statute, without any additional limitations. The Management Board members' authority fully complies with the regulations prescribed by the Companies Act.
The Company acquires treasury shares based on and in accordance with the conditions determined by the General Assembly's decision on acquisition of treasury shares dated on 9 May 2019 which is in force as of 17 November 2019. CORPORATE GOVERNANCE /continued
The Company does not have a share-buyback program or an employee share ownership plan. The Company holds and acquires treasury shares as a form of rewarding the Management and key managers pursuant to the Company acts on the long-term reward plan and for the purpose of dividend payout in rights - Company share to the equity holders. During first half of 2021 the Company wasn't involved in treasury shares acquisition neither disposal of its own shares.
Management Board: Mr. Željko Kukurin, President of the Management Board, and Mr. Marko Čižmek, Member of the Management Board.
Pursuant to the provisions of the Capital Market Act and Regulation (EU) no. 596/2014, the Company has determined its key management: four vice presidents: Alen Benković, Davor Brenko, Ivana Budin Arhanić and David Poropat; and 23 sector directors and managers: Ines Damjanić Šturman, Tomislav Dumančić, Ljubica Grbac, Flavio Gregorović, Marin Gulan, Vlastimir Ivančić, Željko Jurcan, Ivan Karlić, Dario Kinkela, David Manojlović, Mile Pavlica, Tomislav Poljuha, Mirella Premeru, Bruno Radoš, Sandi Sinožić, Martina Šolić, Andrea Štifanić, Mauro Teković, Dragan Vlahović, Ivica Vrkić, Mario Skopljaković, Marko Vusić i Vesna Tomić.
Supervisory Board: Mr. Gustav Wurmböck - Chairman, Mr. Franz Lanschützer - Deputy Chairman, Mr. Mladen Markoč - Deputy Chairman, and members: Mr. Georg Eltz, Mr. Daniel Goldscheider, Mr. Boris Galić and Mr. Ivan Ergović (employee representative).
In order to perform efficiently its function and duties as prescribed by the Audit Act and the Corporate Governance Act, the Supervisory Board has formed the following bodies:
Presidium: Mr. Gustav Wurmböck - Chairman, and members: Mr. Franz Lanschützer and Mr. Mladen Markoč.
Audit Committee: Mr. Georg Eltz - Chairman, and members: Mr. Mladen Markoč, and Mr. Boris Galić
Investment Committee: Mr. Franz Lanschützer - Chairman and members: Mr. Georg Eltz and Mr. Gustav Wurmböck.
Committee on Digitization and Sustainability: Mr Daniel Goldscheider, Chairman and members: Mr Franz Lanschützer and Mr Gustav Wurmböck
Compliant to effective regulations and Company by laws, the Management and Supervisory Board primarily act through meetings and by correspondence in their decision-making.
The Company has concluded Employment contracts with the President and a member of the Management Board for the duration of the term for which they were appointed, and a member of the Supervisory Board, employee representative, has an employment contract for an indefinite period.Board and the Company no other contracts or agreements have been concluded.
Transactions with affiliated companies within the Group are carried out under normal commercial conditions and terms and with the application of market prices.
In the first six months, HRK 5.6 million of revenue from transactions with related parties was generated (HRK 5.5 million in the same period in 2020) for the Company and HRK 1.2 million (HRK 433 in the same period in 2020) for the Group. Expenses amounted to HRK 736 thousand (same period in 2020: HRK 533 thousand) for the Company and HRK 267 thousand for the Group (same period in 2020 HRK 69 thousand).
Balance of receivables and liabilities to related parties as at 30.6.2021. amounts to: receivables for the Company HRK 2.4 million (HRK 546 thousand at the end of 2020) and HRK 214 thousand for the Group (HRK 331 thousand at the end of 2020). Liabilities for the Company amount to HRK 336 thousand (HRK 220 thousand at the end of 2020) and HRK 41 thousand to the Group (HRK 84 thousand at the end of 2020).
The following subsidiaries were registered on 2 September 2011: Podružnica za turizam RABAC, with registered office in Rabac, Slobode 80, Podružnica za turizam ZLATNI OTOK, with registered office in Krk, Vršanska 8. The following branch office was registered on 4 October 2013: Podružnica za turizam DUBROVNIK BABIN KUK, with registered office in Dubrovnik, Vatroslava Lisinskog 15a. The following branch office was registered on 1 October 2014: Podružnica za savjetovanje u vezi s poslovanjem i upravljanjem ZAGREB, with registered office in Zagreb, Miramarska 24. The following branch office was registered on 1 April 2017: Podružnica za turizam BRIONI, with registered office in Pula, Puntižela 155.
The subsidiaries of Rabac, Zlatni otok, Dubrovnik-Babin kuk and Brioni are the drivers of economic growth in their local communities. They operate at their destinations and support their development by promoting further investments and the development of tourism while participating in social and business activities.
The Company also established offices on Rab island, in Makarska and in Stari Grad on the Hvar island to increase the efficiency and streamline the management of operations as determined by the provisions of the concluded Hotel management contracts with Imperial Riviera d.d. and Helios Faros d.d
Performance of Valamar Riviera's share and Zagreb Stock Exchange and travel and leisure indices in firts half of 2021.
During the first half of 2021, the highest achieved share price in regular trading on the regulated market was HRK 32.60, and the lowest HRK 28.20.
Although by mid-January RIVP shares recorded the highest growth compared to all the indices shown in the graph, in the continuation of the period the pressure on the share price prevailed as a result of further uncertainties around the COVID-19 pandemic. In June, there was a slight recovery in the price and the RIVP share closed the first half of the year at the level of HRK 30.20, which is an increase of 2.0% compared to the last price in 2020. With a total turnover of HRK 88.9 million17, the Valamar Riviere share was the most traded share on the Zagreb Stock Exchange during the first half of 2021.
In addition to the Zagreb Stock Exchange index, the joint stock index of the Zagreb and Ljubljana stock exchanges ADRIAprime, the stock is also a component of the Vienna Stock Exchange index (CROX18 and SETX19) and the Warsaw Stock Exchange (CEEplus20), the SEE Link regional platform index (SEELinX and SEELinX EWI)21 and the MSCI Frontier Markets Index.
Zagrebačka banka d.d. and Interkapital vrijednosni papiri d.o.o. perform the activities of market makers with ordinary shares of Valamar Riviera listed on the Leading Market of the Zagreb Stock Exchange d.d.
The Company did not acquire or dispose of its own shares in the period from January 1, 2021 to March 31, 2021. As of March 31, 2021 the
VALAMAR SHARE
Company holds 4,139,635 treasury shares, which is 3.28% of the share capital. /continued Analytical monitoring of Valamar Riviera is provided
Valamar Riviera actively holds meetings and conference calls with domestic and foreign investors, as well as presentations for investors, providing support for the highest possible level of transparency, creating additional liquidity, increasing share value and attracting new investors. By continuing to actively represent Valamar Riviera, we will strive to contribute to further growth in value for all stakeholders with the intention of recognizing the Company's share as one of the leaders on the Croatian capital market and one of the leaders in the CEE region.
1st
MOST ACTIVE TRADED SHARE ON ZAGREB STOCK EXCHANGE IN H1 2021
by: 1) ERSTE bank d.d., Zagreb; 2) FIMA vrijednosnice d.o.o., Varaždin; 3) Interkapital vrijednosni papiri d.o.o., Zagreb; 4) Raiffeisenbank Austria d.d., Zagreb; 5) Zagrebačka banka d.d., Zagreb.
The Management Board expresses its gratitude to all shareholders, business partners, and guests for their support and trust, and particularly to all employees for their contribution.
On 20 April 2021 Integrated Annual Report and Corporate Social Responsibility for 2020 was published, which also includes a non-financial report. The main goal of the report, prepared in accordance with the Standards of the Global Reporting Initiative (GRI), is to further present the strategic and long-term insight into the company's operations to all key stakeholders, including shareholders, employees, partners, guests and the wider community with special focus on sustainable business as a basis for further development of the company. The report also includes environmental, social and management factors in line with the ESG components of responsible investment. The report is available on the websites of the Zagreb Stock Exchange and Valamar Riviera: www.valamar-riviera.com.
As one of the largest employers in Croatia (as of June 30, 2021, the Group employed a total of 4,863 employees, of which 1,902 permanent, and the Company 4,040 employees, of which 1,563 permanent), the Company and the Group systematically and continuously invest in the development of their human resources through a comprehensive strategic approach to their management that includes a transparent recruitment process, clear goals, measuring employee performance and investing in employee development, as well as their careers, and encouraging two-way communication.
In the course of the first half of 2021 the Company's Management Board managed and represented the company pursuant to regulations and the provisions of the Company Statute, and planned a business policy that was implemented with prudent care. The Company's Management Board will continue to undertake all the necessary measures in order to ensure sustainability and business growth. The quarterly separate and consolidated financial statements for the first half of 2021 were adopted by the by the Management Board on 28 July 2021. The Management Board expresses its gratitude to all shareholders, business partners, and guests for their support and trust, and particularly to all employees for their contribution.
This report contains certain outlook based on currently available facts, findings and circumstances and estimates in this regard. Our outlook is based including, but no limited on a) results achieved in the first half of 2021; b) operating results achieved by 28 July 2021; c) current booking status; d) 2021 year end business results forecast; e) temporary business suspension (Pause, restart); f) currently adopted set of aid measures by the Croatian government, Croatian National Bank, Croatian Bank for Reconstruction and Development, competent ministries as well as state and local authorities; g) the absence of further significant negative effects of the risks to which the Company and the Group are exposed.
Outlook statements are based on currently available information, current assumptions, forward-looking expectations and projections. This outlook is not a guarantee of future results and is subject to future events, risks, and uncertainties, many of which are beyond the control of, or currently unknown to Valamar Riviera, as well as potentially incorrect assumptions that could cause the actual results to materially differ from the said expectations and forecasts. Risks and uncertainties include, but are not limited to those described in the chapter "Risks of the Company and the Group". Materially significant deviations from the outlook may arise from changes in circumstances, assumptions not being realized, as well as other risks, uncertainties, and factors, including, but no limited to:
preferences, trust in and satisfaction with Valamar Riviera's products and services;
Should materially significant changes to the stated outlook occur, Valamar Riviera shall immediately inform the public thereof, in compliance with Article 459 of the Capital Market Act. The given outlook statements are not an outright recommendation to buy, hold or sell Valamar Riviera's shares.
In accordance with provisions of Law on Capital Market, Marko Čižmek, Management board member responsible for finance, treasury and IT business as well as relations with institutional investors and Ljubica Grbac director of Department of Finance and Accounting, procurator and person responsible for finance and accounting, together as persons responsible for the preparation of quarterly financial reports of the company VALAMAR RIVIERA d.d. seated in Poreč, Stancija Kaligari 1, OIB 36201212847 (hereinafter: Company), hereby make the following
Marko Čižmek Član Uprave
Ljubica Grbac Direktor Sektora / Prokurist
| Year: | 2021 | ||
|---|---|---|---|
| Quarter: | 2 | ||
| Registration number (MB): | 3474771 | HR Issuer's home Member State code: |
|
| Entity's registration number (MBS): | 40020883 | ||
| Personal identification number (OIB): | 36201212847 | LEI: | 529900DUWS1DGNEK4C68 |
| Institution code: | 30577 | ||
| Name of the issuer: | Valamar Riviera d.d. | ||
| Postcode and town: | 52440 | Poreč | |
| Street and house number: | Stancija Kaligari 1 | ||
| E-mail address: | [email protected] | ||
| Web address: | www.valamar-riviera.com | ||
| Number of employees (end of the reporting period): |
4863 | ||
| Consolidated report: | KD | (KN-not consolidated/KD-consolidated) | |
| Audited: | RN | (RN-not audited/RD-audited) | |
| Names of subsidiaries (according to IFRS): |
Registered office: | MB: | |
| Valamar Obertauern GmbH | Obertauern | 195893 D | |
| Valamar A GmbH | Tamsweg | 486431 S | |
| Palme Turizam d.o.o. | Dubrovnik | 2006103 | |
| Magične stijene d.o.o. | Dubrovnik | 2315211 | |
| Bugenvilia d.o.o. | Dubrovnik | 2006120 | |
| Imperial Riviera d.d. | Rab | 3044572 | |
| Bookkeeping firm: | No | ||
| Contact person: | Sopta Anka | ||
| (only name and surname of the contact person) | |||
| Telephone: | 052 408 188 | ||
| E-mail address: | [email protected] | ||
| Audit firm: | |||
| (name of the audit firm) | |||
| Certified auditor: | |||
| (name and surname) | |||
M.P. (potpis osobe ovlaštene za zastupanje)
| ADP | Last day of the pre | At the reporting date | |
|---|---|---|---|
| Item | code | ceding business year | of the current period |
| 1 A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID |
2 001 |
3 | 4 |
| B) FIXED ASSETS (ADP 003+010+020+031+036) | 002 | 6.087.157.859 | 5.939.685.224 |
| I INTANGIBLE ASSETS (ADP 004 to 009) | 003 | 46.400.186 | 42.161.019 |
| 1 Research and development | 004 | ||
| 2 Concessions, patents, licences, trademarks, software and other rights | 005 | 37.551.928 | 30.134.694 |
| 3 Goodwill | 006 | 6.567.609 | 6.567.609 |
| 4 Advances for the purchase of intangible assets | 007 | ||
| 5 Intangible assets in preparation | 008 | 2.280.649 | 5.458.716 |
| 6 Other intangible assets | 009 | ||
| II TANGIBLE ASSETS (ADP 011 to 019) | 010 | 5.662.917.241 | 5.463.912.827 |
| 1 Land 2 Buildings |
011 012 |
976.429.207 3.560.463.801 |
983.495.452 3.401.204.996 |
| 3 Plant and equipment | 013 | 488.743.200 | 447.278.920 |
| 4 Tools, working inventory and transportation assets | 014 | 116.542.756 | 99.882.352 |
| 5 Biological assets | 015 | ||
| 6 Advances for the purchase of tangible assets | 016 | 988.061 | 563.373 |
| 7 Tangible assets in preparation | 017 | 443.016.063 | 466.907.427 |
| 8 Other tangible assets | 018 | 72.791.725 | 61.068.193 |
| 9 Investment property | 019 | 3.942.428 | 3.512.114 |
| III FIXED FINANCIAL ASSETS (ADP 021 to 030) | 020 | 46.430.294 | 44.935.820 |
| 1 Investments in holdings (shares) of undertakings within the group | 021 | ||
| 2 Investments in other securities of undertakings within the group | 022 | ||
| 3 Loans, deposits, etc. to undertakings within the group 4 Investments in holdings (shares) of companies linked by virtue of participating interests |
023 024 |
46.054.207 | 44.441.336 |
| 5 Investment in other securities of companies linked by virtue of participating interests | 025 | ||
| 6 Loans, deposits etc. to companies linked by virtue of participating interests | 026 | ||
| 7 Investments in securities | 027 | 147.054 | 272.417 |
| 8 Loans, deposits, etc. given | 028 | 89.033 | 82.067 |
| 9 Other investments accounted for using the equity method | 029 | ||
| 10 Other fixed financial assets | 030 | 140.000 | 140.000 |
| IV RECEIVABLES (ADP 032 to 035) | 031 | ||
| 1 Receivables from undertakings within the group | 032 | ||
| 2 Receivables from companies linked by virtue of participating interests | 033 | ||
| 3 Customer receivables | 034 | ||
| 4 Other receivables V DEFERRED TAX ASSETS |
035 036 |
331.410.138 | 388.675.558 |
| C) CURRENT ASSETS (ADP 038+046+053+063) | 037 | 737.066.269 | 715.455.142 |
| I INVENTORIES (ADP 039 to 045) | 038 | 30.335.208 | 33.874.269 |
| 1 Raw materials and consumables | 039 | 29.329.354 | 32.536.651 |
| 2 Work in progress | 040 | ||
| 3 Finished goods | 041 | ||
| 4 Merchandise | 042 | 973.867 | 1.291.527 |
| 5 Advances for inventories | 043 | 31.987 | 46.091 |
| 6 Fixed assets held for sale | 044 | ||
| 7 Biological assets | 045 | ||
| II RECEIVABLES (ADP 047 to 052) | 046 | 40.184.920 | 52.679.845 |
| 1 Receivables from undertakings within the group 2 Receivables from companies linked by virtue of participating interests |
047 048 |
1.598.603 | 213.617 |
| 3 Customer receivables | 049 | 23.776.150 | 38.963.010 |
| 4 Receivables from employees and members of the undertaking | 050 | 297.549 | 3.605.388 |
| 5 Receivables from government and other institutions | 051 | 10.162.443 | 4.545.328 |
| 6 Other receivables | 052 | 4.350.175 | 5.352.502 |
| III CURRENT FINANCIAL ASSETS (ADP 054 to 062) | 053 | 613.241 | 1.160.924 |
| 1 Investments in holdings (shares) of undertakings within the group | 054 | ||
| 2 Investments in other securities of undertakings within the group | 055 | ||
| 3 Loans, deposits, etc. to undertakings within the group | 056 | ||
| 4 Investments in holdings (shares) of companies linked by virtue of participating interests | 057 | ||
| 5 Investment in other securities of companies linked by virtue of participating interests | 058 | ||
| 6 Loans, deposits etc. to companies linked by virtue of participating interests 7 Investments in securities |
059 060 |
||
| 8 Loans, deposits, etc. given | 061 | 613.241 | 516.696 |
| 9 Other financial assets | 062 | 644.228 | |
| IV CASH AT BANK AND IN HAND | 063 | 665.932.900 | 627.740.104 |
| D) PREPAID EXPENSES AND ACCRUED INCOME | 064 | 55.358.952 | 95.410.626 |
| E) TOTAL ASSETS (ADP 001+002+037+064) | 065 | 6.879.583.080 | 6.750.550.992 |
F) OFF-BALANCE SHEET ITEMS 066 54.261.380 54.211.658
| ADP | Last day of the pre | At the reporting date | |
|---|---|---|---|
| Item | code | ceding business year | of the current period |
| 1 LIABILITIES |
2 | 3 | 4 |
| A) CAPITAL AND RESERVES (ADP 068 to 070+076+077+083+086+089) | 067 | 2.863.857.326 | 2.689.266.372 |
| I INITIAL (SUBSCRIBED) CAPITAL | 068 | 1.672.021.210 | 1.672.021.210 |
| II CAPITAL RESERVES | 069 | 5.223.432 | 5.223.432 |
| III RESERVES FROM PROFIT (ADP 071+072-073+074+075) | 070 | 98.511.512 | 98.247.550 |
| 1 Legal reserves | 071 | 83.601.061 | 83.601.061 |
| 2 Reserves for treasury shares | 072 | 136.815.284 | 136.815.284 |
| 3 Treasury shares and holdings (deductible item) | 073 | -124.418.267 | -124.418.267 |
| 4 Statutory reserves | 074 | ||
| 5 Other reserves | 075 | 2.513.434 | 2.249.472 |
| IV REVALUATION RESERVES | 076 | ||
| V FAIR VALUE RESERVES AND OTHER (ADP 078 to 082) | 077 | 872 | 270.596 |
| 1 Financial assets at fair value through other comprehensive income (i.e. available for sale) | 078 | 872 | 103.790 |
| 2 Cash flow hedge - effective portion | 079 | ||
| 3 Hedge of a net investment in a foreign operation - effective portion | 080 | ||
| 4 Other fair value reserves | 081 | ||
| 5 Exchange differences arising from the translation of foreign operations (consolidation) | 082 | 166.806 | |
| VI RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 084-085) | 083 | 715.882.878 | 388.045.406 |
| 1 Retained profit | 084 | 715.882.878 | 388.045.406 |
| 2 Loss brought forward | 085 | ||
| VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 087-088) | 086 | -329.593.506 | -158.113.705 |
| 1 Profit for the business year | 087 | ||
| 2 Loss for the business year | 088 | 329.593.506 | 158.113.705 |
| VIII MINORITY (NON-CONTROLLING) INTEREST | 089 | 701.810.928 | 683.571.883 |
| B) PROVISIONS (ADP 091 to 096) 1 Provisions for pensions, termination benefits and similar obligations |
090 091 |
141.118.430 26.089.854 |
135.124.075 26.089.854 |
| 2 Provisions for tax liabilities | 092 | ||
| 3 Provisions for ongoing legal cases | 093 | 57.420.166 | 51.425.811 |
| 4 Provisions for renewal of natural resources | 094 | ||
| 5 Provisions for warranty obligations | 095 | ||
| 6 Other provisions | 096 | 57.608.410 | 57.608.410 |
| C) LONG-TERM LIABILITIES (ADP 098 to 108) | 097 | 2.867.349.347 | 3.208.054.924 |
| 1 Liabilities to undertakings within the group | 098 | ||
| 2 Liabilities for loans, deposits, etc. of undertakings within the group | 099 | ||
| 3 Liabilities to companies linked by virtue of participating interests | 100 | ||
| 4 Liabilities for loans, deposits etc. of companies linked by virtue of participating interests | 101 | ||
| 5 Liabilities for loans, deposits etc. | 102 | ||
| 6 Liabilities to banks and other financial institutions | 103 | 2.770.275.555 | 3.116.222.976 |
| 7 Liabilities for advance payments | 104 | ||
| 8 Liabilities to suppliers | 105 | 144.535 | |
| 9 Liabilities for securities | 106 | ||
| 10 Other long-term liabilities | 107 | 38.781.433 | 35.622.879 |
| 11 Deferred tax liability | 108 | 58.292.359 | 56.064.534 |
| D) SHORT-TERM LIABILITIES (ADP 110 to 123) | 109 | 934.437.190 | 614.581.577 |
| 1 Liabilities to undertakings within the group | 110 | ||
| 2 Liabilities for loans, deposits, etc. of undertakings within the group | 111 | ||
| 3 Liabilities to companies linked by virtue of participating interests | 112 | 40.997 | |
| 4 Liabilities for loans, deposits etc. of companies linked by virtue of participating interests | 113 | ||
| 5 Liabilities for loans, deposits etc. | 114 | 5.304.000 | 5.304.000 |
| 6 Liabilities to banks and other financial institutions | 115 | 733.061.607 | 251.762.055 |
| 7 Liabilities for advance payments | 116 | 69.608.737 | 179.595.449 |
| 8 Liabilities to suppliers | 117 | 61.808.783 | 85.995.570 |
| 9 Liabilities for securities | 118 | 6.625.196 | |
| 10 Liabilities to employees | 119 | 19.186.775 | 36.909.445 |
| 11 Taxes, contributions and similar liabilities | 120 | 6.130.006 | 34.366.032 |
| 12 Liabilities arising from the share in the result | 121 | 389.276 | 379.676 |
| 13 Liabilities arising from fixed assets held for sale | 122 | ||
| 14 Other short-term liabilities | 123 | 32.322.810 | 20.228.353 |
| E) ACCRUALS AND DEFERRED INCOME F) TOTAL – LIABILITIES (ADP 067+090+097+109+124) |
124 125 |
72.820.787 6.879.583.080 |
103.524.044 6.750.550.992 |
| G) OFF-BALANCE SHEET ITEMS | 126 | 54.261.380 | 54.211.658 |
| Same period | Current period | |||||
|---|---|---|---|---|---|---|
| Item | code | of the previous year | ||||
| 1 | 2 | Cummulative 3 |
Quarter 4 |
Cummulative 5 |
Quarter 6 |
|
| I OPERATING INCOME (ADP 002 to 006) | 001 | 124.199.713 | 79.219.663 | 266.400.722 | 236.231.033 | |
| 1 Income from sales with undertakings within the group | 002 | |||||
| 2 Income from sales (outside group) | 003 | 109.249.000 | 67.864.826 | 249.034.083 | 229.211.832 | |
| 3 Income from the use of own products, goods and services | 004 | 299.615 | 75.210 | 155.597 | 82.026 | |
| 4 Other operating income with undertakings within the group | 005 | |||||
| 5 Other operating income (outside the group) | 006 | 14.651.098 | 11.279.627 | 17.211.042 | 6.937.175 | |
| II OPERATING EXPENSES (ADP 008+009+013+017+018+019+022+029) | 007 | 482.563.458 | 207.406.834 | 491.028.000 | 301.692.625 | |
| 1 Changes in inventories of work in progress and finished goods | 008 | |||||
| 2 Material costs (ADP 010 to 012) | 009 | 83.160.816 | 34.620.101 | 117.392.388 | 92.034.584 | |
| a) Costs of raw materials and consumables | 010 | 43.280.412 | 20.716.762 | 66.531.810 | 54.523.425 | |
| b) Costs of goods sold | 011 | 452.588 | 411.018 | 2.349.621 | 1.579.437 | |
| c) Other external costs | 012 | 39.427.816 | 13.492.321 | 48.510.957 | 35.931.722 | |
| 3 Staff costs (ADP 014 to 016) | 013 | 96.996.224 | 28.043.671 | 81.148.405 | 56.995.590 | |
| a) Net salaries and wages | 014 | 52.315.616 | 7.939.177 | 45.915.276 | 33.856.471 | |
| b) Tax and contributions from salary costs | 015 | 29.982.685 | 13.972.683 | 24.689.633 | 15.899.780 | |
| c) Contributions on salaries | 016 | 14.697.923 | 6.131.811 | 10.543.496 | 7.239.339 | |
| 4 Depreciation | 017 | 250.154.456 | 124.678.281 | 250.508.368 | 125.497.943 | |
| 5 Other costs | 018 | 48.026.127 | 18.785.225 | 37.297.887 | 24.928.193 | |
| 6 Value adjustments (ADP 020+021) | 019 | 274.096 | 70.288 | 19.070 | 11.090 | |
| a) fixed assets other than financial assets | 020 | |||||
| b) current assets other than financial assets | 021 | 274.096 | 70.288 | 19.070 | 11.090 | |
| 7 Provisions (ADP 023 to 028) | 022 | |||||
| a) Provisions for pensions, termination benefits and similar obligations | 023 | |||||
| b) Provisions for tax liabilities | 024 | |||||
| c) Provisions for ongoing legal cases | 025 | |||||
| d) Provisions for renewal of natural resources | 026 | |||||
| e) Provisions for warranty obligations | 027 | |||||
| f) Other provisions | 028 | |||||
| 8 Other operating expenses III. FINANCIAL INCOME (ADP 031 to 040) |
029 030 |
3.951.739 9.583.692 |
1.209.268 25.587.846 |
4.661.882 24.573.094 |
2.225.225 36.077.650 |
|
| 1 Income from investments in holdings (shares) of undertakings within the group | 031 | |||||
| 2 Income from investments in holdings (shares) of companies linked by | 032 | |||||
| virtue of participating interests 3 Income from other long-term financial investment and loans granted to |
||||||
| undertakings within the group | 033 | |||||
| 4 Other interest income from operations with undertakings within the group 5 Exchange rate differences and other financial income from operations |
034 | |||||
| with undertakings within the group | 035 | |||||
| 6 Income from other long-term financial investments and loans | 036 | |||||
| 7 Other interest income | 037 | 62.398 | 18.015 | 40.101 | 13.522 | |
| 8 Exchange rate differences and other financial income | 038 | 1.534.091 | 16.172.757 | 18.673.144 | 32.904.820 | |
| 9 Unrealised gains (income) from financial assets 10 Other financial income |
039 040 |
7.987.203 | 2.999.075 6.397.999 |
2.620.380 3.239.469 |
1.419.814 1.739.494 |
|
| IV FINANCIAL EXPENSES (ADP 042 to 048) | 041 | 92.678.382 | 24.576.723 | 34.213.659 | 18.400.862 | |
| 1 Interest expenses and similar expenses with undertakings within the group | 042 | |||||
| 2 Exchange rate differences and other expenses from operations with undertakings within the group |
043 | |||||
| 3 Interest expenses and similar expenses | 044 | 29.832.060 | 23.917.306 | 32.056.499 | 16.447.400 | |
| 4 Exchange rate differences and other expenses | 045 | 45.632.034 | 659.417 | 208.303 | 1.465.116 | |
| 5 Unrealised losses (expenses) from financial assets | 046 | 16.278.889 | ||||
| 6 Value adjustments of financial assets (net) | 047 | |||||
| 7 Other financial expenses | 048 | 935.399 | 1.948.857 | 488.346 | ||
| V SHARE IN PROFIT FROM UNDERTAKINGS LINKED BY VRITUE OF PARTICIPATING INTERESTS |
049 | |||||
| VI SHARE IN PROFIT FROM JOINT VENTURES | 050 | |||||
| VII SHARE IN LOSS OF COMPANIES LINKED BY VIRTUE OF PARTICIPATING INTEREST |
051 | 1.112.450 | 508.531 | 1.612.871 | 1.361.479 | |
| VIII SHARE IN LOSS OF JOINT VENTURES | 052 | |||||
| IX TOTAL INCOME (ADP 001+030+049+050) | 053 | 133.783.405 | 104.807.509 | 290.973.816 | 272.308.683 | |
| X TOTAL EXPENDITURE (ADP 007+041+051+052) | 054 | 576.354.290 | 232.492.088 | 526.854.530 | 321.454.966 | |
| XI PRE-TAX PROFIT OR LOSS (ADP 053-054) | 055 | -442.570.885 | -127.684.579 | -235.880.714 | -49.146.283 | |
| 1 Pre-tax profit (ADP 053-054) | 056 | |||||
| 2 Pre-tax loss (ADP 054-053) | 057 | -442.570.885 | -127.684.579 | -235.880.714 | -49.146.283 |
| Item | ADP Same period Current period code of the previous year |
||||
|---|---|---|---|---|---|
| Cummulative | Quarter | Cummulative | Quarter | ||
| 1 | 2 | 3 | 4 | 5 | 6 |
| XII INCOME TAX | 058 | -121.197.667 | -121.197.667 | -59.527.964 | -284.582 |
| XIII PROFIT OR LOSS FOR THE PERIOD (ADP 055-059) | 059 | -321.373.218 | -6.486.912 | -176.352.750 | -48.861.701 |
| 1. Profit for the period (ADP 055-059) | 060 | ||||
| 2. Loss for the period (ADP 059-055) | 061 | -321.373.218 | -6.486.912 | -176.352.750 | -48.861.701 |
| XIV PRE-TAX PROFIT OR LOSS OF DISCONTINUED OPERATIONS (ADP 063-064) |
062 | |
|---|---|---|
| 1 Pre-tax profit from discontinued operations | 063 | |
| 2 Pre-tax loss on discontinued operations | 064 | |
| XV INCOME TAX OF DISCONTINUED OPERATIONS | 065 | |
| 1 Discontinued operations profit for the period (ADP 062-065) | 066 | |
| 2 Discontinued operations loss for the period (ADP 065-062) | 067 |
| XVI PRE-TAX PROFIT OR LOSS (ADP 055+062) | 068 |
|---|---|
| 1 Pre-tax profit (ADP 068) | 069 |
| 2 Pre-tax loss (ADP 068) | 070 |
| XVII INCOME TAX (ADP 058+065) | 071 |
| XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 068-071) | 072 |
| 1 Profit for the period (ADP 068-071) | 073 |
| 2 Loss for the period (ADP 071-068) | 074 |
| XIX PROFIT OR LOSS FOR THE PERIOD (ADP 076+077) | 075 | -321.373.218 | -6.486.912 | -176.352.750 | -48.861.701 |
|---|---|---|---|---|---|
| 1 Attributable to owners of the parent | 076 | -298.752.759 | -9.031.346 | -158.113.705 | -41.661.871 |
| 2 Attributable to minority (non-controlling) interest | 077 | -22.620.459 | 2.544.434 | -18.239.045 | -7.199.830 |
| I PROFIT OR LOSS FOR THE PERIOD | 078 | -321.373.218 | -6.486.912 | -176.352.750 | -48.861.701 |
|---|---|---|---|---|---|
| II OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX (ADP 080 to 087) |
079 | -67.824 | 25.056 | 292.315 | 187.103 |
| III ITEMS THAT WILL NOT BE RECLASSIFIED TO PROFIT OR LOSS (ADP 081 to 085) |
080 | -67.824 | 25.056 | 125.509 | 98.635 |
| 1 Changes in revaluation reserves of fixed tangible and intangible assets | 081 | ||||
| 2 Gains or losses from subsequent measurement of equity instruments at fair value through other comprehensive income |
082 | -67.824 | 25.056 | 125.509 | 98.635 |
| 3 Fair value changes of financial liabilities at fair value through statement of profit or loss, attributable to changes in their credit risk |
083 | ||||
| 4 Actuarial gains/losses on the defined benefit obligation | 084 | ||||
| 5 Other items that will not be reclassified | 085 | ||||
| 6 Income tax relating to items that will not be reclassified | 086 | -12.208 | 4.510 | 22.591 | 17.754 |
| IV ITEMS THAT MAY BE RECLASSIFIED TO PROFIT OR LOSS (ADP 088 to 095) |
087 | 166.806 | 88.468 | ||
| 1 Exchange rate differences from translation of foreign operations | 088 | 166.806 | 88.468 | ||
| 2 Gains or losses from subsequent measurement of debt securities at fair value through other comprehensive income |
089 | ||||
| 3 Profit or loss arising from effective cash flow hedging | 090 | ||||
| 4 Profit or loss arising from effective hedge of a net investment in a foreign operation |
091 | ||||
| 5 Share in other comprehensive income/loss of companies linked by virtue of participating interests |
092 | ||||
| 6 Changes in fair value of the time value of option | 093 | ||||
| 7 Changes in fair value of forward elements of forward contracts | 094 | ||||
| 8 Other items that may be reclassified to profit or loss | 095 | ||||
| 9 Income tax relating to items that may be reclassified to profit or loss | 096 |
| Item | ADP code |
Same period of the previous year |
Current period | ||
|---|---|---|---|---|---|
| Cummulative | Quarter | Cummulative | Quarter | ||
| 1 | 2 | 3 | 4 | 5 | 6 |
| V NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 080+087- 086 - 096) | 097 | -55.616 | 20.546 | 269.724 | 169.349 |
| VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 078+097) | 098 | -321.428.834 | -6.466.366 | -176.083.026 | -48.692.352 |
| VII COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 100+101) | 099 | -321.428.834 | -6.466.366 | -176.083.026 | -48.692.352 |
|---|---|---|---|---|---|
| 1 Attributable to owners of the parent | 100 | -298.808.375 | -9.010.800 | -157.843.981 | -41.492.522 |
| 2 Attributable to minority (non-controlling) interest | 101 | -22.620.459 | 2.544.434 | -18.239.045 | -7.199.830 |
| ADP | Same period of the | Current | |
|---|---|---|---|
| Item | code | previous year | period |
| 1 | 2 | 3 | 4 |
| CASH FLOW FROM OPERATING ACTIVITIES | |||
| 1 Pre-tax profit | 001 | -442.570.885 | -235.880.714 |
| 2 Adjustments (ADP 003 to 010): | 002 | 330.291.683 | 255.042.834 |
| a) Depreciation | 003 | 250.154.456 | 250.508.368 |
| b) Gains and losses from sale and value adjustment of fixed tangible and intangible assets | 004 | -1.496.314 | -837.884 |
| c) Gains and losses from sale and unrealised gains and losses and value adjustment of financial assets |
005 | 15.951 | |
| d) Interest and dividend income | 006 | -36.202 | -22.349 |
| e) Interest expenses | 007 | 30.782.785 | 34.005.356 |
| f) Provisions | 008 | -830.412 | -5.994.355 |
| g) Exchange rate differences (unrealised) | 009 | 42.071.435 | -18.673.144 |
| h) Other adjustments for non-cash transactions and unrealised gains and losses | 010 | 9.629.984 | -3.943.158 |
| I Cash flow increase or decrease before changes in working capital (ADP 001+002) | 011 | -112.279.202 | 19.162.120 |
| 3 Changes in the working capital (ADP 013 to 016) | 012 | 73.196.464 | 123.196.198 |
| a) Increase or decrease in short-term liabilities | 013 | 105.428.844 | 183.068.767 |
| b) Increase or decrease in short-term receivables | 014 | -31.600.461 | -56.333.508 |
| c) Increase or decrease in inventories | 015 | -1.714.369 | -3.539.061 |
| d) Other increase or decrease in working capital | 016 | 1.082.450 | |
| II Cash from operations (ADP 011+012) 4 Interest paid |
017 018 |
-39.082.738 -14.058.877 |
142.358.318 -19.600.163 |
| 5 Income tax paid | 019 | -708.698 | -12.365 |
| A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019) | 020 | -53.850.313 | 122.745.790 |
| CASH FLOW FROM INVESTMENT ACTIVITIES | |||
| 1 Cash receipts from sales of fixed tangible and intangible assets | 021 | 3.429.386 | 3.084.299 |
| 2 Cash receipts from sales of financial instruments | 022 | ||
| 3 Interest received | 023 | 38.976 | 27.431 |
| 4 Dividends received | 024 | ||
| 5 Cash receipts from repayment of loans and deposits | 025 | 119.363 | 133.681 |
| 6 Other cash receipts from investment activities | 026 | ||
| III Total cash receipts from investment activities (ADP 021 to 026) | 027 | 3.587.725 | 3.245.411 |
| 1 Cash payments for the purchase of fixed tangible and intangible assets | 028 | -467.937.823 | -48.342.205 |
| 2 Cash payments for the acquisition of financial instruments | 029 | ||
| 3 Cash payments for loans and deposits for the period | 030 | -140.107 | -30.000 |
| 4 Acquisition of a subsidiary, net of cash acquired | 031 | ||
| 5 Other cash payments from investment activities | 032 | ||
| IV Total cash payments from investment activities (ADP 028 to 032) | 033 | -468.077.930 | -48.372.205 |
| B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027+033) | 034 | -464.490.205 | -45.126.794 |
| CASH FLOW FROM FINANCING ACTIVITIES 1 Cash receipts from the increase in initial (subscribed) capital |
035 | ||
| 2 Cash receipts from the issue of equity financial instruments and debt financial instruments |
036 | ||
| 3 Cash receipts from credit principals, loans and other borrowings | 037 | 477.160.794 | 173.068.740 |
| 4 Other cash receipts from financing activities | 038 | 1.674.883 | 1.756.034 |
| V Total cash receipts from financing activities (ADP 035 to 038) | 039 | 478.835.677 | 174.824.774 |
| 1 Cash payments for the repayment of credit principals, loans and other borrowings and debt financial instruments |
040 | -9.352.897 | -289.834.155 |
| 2 Cash payments for dividends | 041 | ||
| 3 Cash payments for finance lease | 042 | -25.245 | |
| 4 Cash payments for the redemption of treasury shares and decrease in initial (subscribed) capital |
043 | ||
| 5 Other cash payments from financing activities | 044 | -1.782.639 | -777.166 |
| VI Total cash payments from financing activities (ADP 040 to 044) | 045 | -11.135.536 | -290.636.566 |
| C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039+045) | 046 | 467.700.141 | -115.811.792 |
| 1 Unrealised exchange rate differences in respect of cash and cash equivalents | 047 | ||
| D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP 020+034+046+047) | 048 | -50.640.377 | -38.192.796 |
| E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (ADP 048+049) |
049 050 |
550.142.638 499.502.261 |
665.932.900 627.740.104 |
| 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 (availa ble 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 transla tion of foreign operations |
Retained profit / loss brought forward |
Profit/loss for the business year |
Total attributable to owners of the parent |
Minority (non-con trolling) 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 | 1.672.021.210 | 5.223.432 83.601.061 136.815.284 124.418.267 | 61.474 | 430.206.412 284.535.940 2.488.046.546 731.023.213 3.219.069.759 | ||||||||||||||
| 2 Changes in accounting policies | 02 | ||||||||||||||||||
| 3 Correction of errors | 03 | ||||||||||||||||||
| 4 Balance on the first day of the previous business year (restated) (ADP 01 to 03) | 04 | 1.672.021.210 | 5.223.432 83.601.061 136.815.284 124.418.267 | 61.474 | 430.206.412 284.535.940 2.488.046.546 731.023.213 3.219.069.759 | ||||||||||||||
| 5 Profit/loss of the period | 05 | -329.593.506 -329.593.506 -29.212.285 -358.805.791 | |||||||||||||||||
| 6 Exchange rate differences from translation of foreign operations | 06 | 263.962 | 263.962 | 263.962 | |||||||||||||||
| 7 Changes in revaluation reserves of fixed tangible and intangible assets | 07 | ||||||||||||||||||
| 8 Gains or losses from subsequent measurement of financial assets at fair value | 08 | -73.904 | -73.904 | -73.904 | |||||||||||||||
| through other comprehensive income (available for sale) | |||||||||||||||||||
| 9 Profit or loss arising from effective cash flow hedge | 09 | ||||||||||||||||||
| 10 Profit or loss arising from effective hedge of a net investment in a foreign operation | 10 | ||||||||||||||||||
| 11 Share in other comprehensive income/loss of companies linked by virtue of participating interests |
11 | ||||||||||||||||||
| 12 Actuarial gains/losses on the defined benefit obligation | 12 | ||||||||||||||||||
| 13 Other changes in equity unrelated to owners | 13 | ||||||||||||||||||
| 14 Tax on transactions recognised directly in equity | 14 | 13.302 | 13.302 | 13.302 | |||||||||||||||
| 15 Decrease in initial (subscribed) capital (other than arising from the pre | 15 | ||||||||||||||||||
| bankruptcy settlement procedure or from the reinvestment of profit) | |||||||||||||||||||
| 16 Decrease in initial (subscribed) capital arising from the pre-bankruptcy settlement procedure |
16 | ||||||||||||||||||
| 17 Decrease in initial (subscribed) capital arising from the reinvestment of profit | 17 | ||||||||||||||||||
| 18 Redemption of treasury shares/holdings | 18 | ||||||||||||||||||
| 19 Payments from members/shareholders | 19 | ||||||||||||||||||
| 20 Payment of share in profit/dividend | 20 | ||||||||||||||||||
| 21 Other distributions and payments to members/shareholders | 21 | 2.249.472 | 1.140.526 | 3.389.998 | 3.389.998 | ||||||||||||||
| 22 Transfer to reserves according to the annual schedule | 22 | 284.535.940 -284.535.940 | |||||||||||||||||
| 23 Increase in reserves arising from the pre-bankruptcy settlement procedure | 23 | ||||||||||||||||||
| 24 Balance on the last day of the previous business year reporting period | |||||||||||||||||||
| (ADP 04 to 23) | 24 | 1.672.021.210 | 5.223.432 83.601.061 136.815.284 124.418.267 | 2.513.434 | 872 | 715.882.878 -329.593.506 2.162.046.398 701.810.928 2.863.857.326 | |||||||||||||
| 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 | 263.962 | -60.602 | 203.360 | 203.360 | ||||||||||||||
| II COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD | 26 | 263.962 | -60.602 | -329.593.506 -329.390.146 -29.212.285 -358.602.431 | |||||||||||||||
| (ADP 05+25) | |||||||||||||||||||
| III TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD RECOGNISED DIRECTLY IN EQUITY (ADP 15 to 23) |
27 | 2.249.472 | 285.676.466 -284.535.940 | 3.389.998 | 3.389.998 | ||||||||||||||
| Current period | |||||||||||||||||||
| 1 Balance on the first day of the previous business year | 28 | 1.672.021.210 | 5.223.432 83.601.061 136.815.284 124.418.267 | 2.513.434 | 872 | 715.882.878 -329.593.506 2.162.046.398 701.810.928 2.863.857.326 | |||||||||||||
| 2 Changes in accounting policies | 29 | ||||||||||||||||||
| 3 Correction of errors | 30 | ||||||||||||||||||
| 4 Balance on the first day of the previous business year (restated) (ADP 28 to 30) | 31 | 1.672.021.210 | 5.223.432 83.601.061 136.815.284 124.418.267 | 2.513.434 | 872 | 715.882.878 -329.593.506 2.162.046.398 701.810.928 2.863.857.326 | |||||||||||||
| 5 Profit/loss of the period | 32 | -158.113.705 -158.113.705 -18.239.045 -176.352.750 | |||||||||||||||||
| 6 Exchange rate differences from translation of foreign operations | 33 | -263.962 | 166.806 | -97.156 | -97.156 | ||||||||||||||
| 7 Changes in revaluation reserves of fixed tangible and intangible assets | 34 | ||||||||||||||||||
| 8 Gains or losses from subsequent measurement of financial assets at fair value | 35 | 125.509 | 125.509 | 125.509 | |||||||||||||||
| through other comprehensive income (available for sale) | |||||||||||||||||||
| 9 Profit or loss arising from effective cash flow hedge | 36 | ||||||||||||||||||
| 10 Profit or loss arising from effective hedge of a net investment in a foreign operation | 37 | ||||||||||||||||||
| 11 Share in other comprehensive income/loss of companies linked by virtue of participating interests |
38 | ||||||||||||||||||
| 12 Actuarial gains/losses on the defined benefit obligation | 39 | ||||||||||||||||||
| 13 Other changes in equity unrelated to owners | 40 | ||||||||||||||||||
| 14 Tax on transactions recognised directly in equity | 41 | -22.591 | -22.591 | -22.591 | |||||||||||||||
| 15 Decrease in initial (subscribed) capital (other than arising from the pre | 42 | ||||||||||||||||||
| bankruptcy settlement procedure or from the reinvestment of profit) | |||||||||||||||||||
| 16 Decrease in initial (subscribed) capital arising from the pre-bankruptcy settlement procedure |
43 | ||||||||||||||||||
| 17 Decrease in initial (subscribed) capital arising from the reinvestment of profit | 44 | ||||||||||||||||||
| 18 Redemption of treasury shares/holdings | 45 | ||||||||||||||||||
| 19 Payments from members/shareholders | 46 | ||||||||||||||||||
| 20 Payment of share in profit/dividend | 47 | ||||||||||||||||||
| 21 Other distributions and payments to members/shareholders | 48 | 1.756.034 | 1.756.034 | 1.756.034 | |||||||||||||||
| 22 Carryforward per annual plane | 49 | -329.593.506 329.593.506 | |||||||||||||||||
| 23 Increase in reserves arising from the pre-bankruptcy settlement procedure | 50 | ||||||||||||||||||
| 24 Balance on the last day of the previous business year reporting period | 51 | 1.672.021.210 | 5.223.432 83.601.061 136.815.284 124.418.267 | 2.249.472 | 103.790 | 166.806 388.045.406 -158.113.705 2.005.694.489 683.571.883 2.689.266.372 | |||||||||||||
| (ADP 31 to 50) | |||||||||||||||||||
| 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 | -263.962 | 102.918 | 166.806 | 5.762 | 5.762 | |||||||||||||
| II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP 32 to 52) | 53 | -263.962 | 102.918 | 166.806 | -158.113.705 -158.107.943 -18.239.045 -176.346.988 | ||||||||||||||
| III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED DIRECTLY IN EQUITY (ADP 42 to 50) |
54 | -327.837.472 329.593.506 | 1.756.034 | 1.756.034 |
(drawn up for quarterly reporting periods)
Name of the issuer: Valamar Riviera d.d.
Personal identification number OIB: 36201212847
Reporting period: 01.01.2021. to 30.06.2021. Notes to financial statements for quarterly periods include:
(drawn up for quarterly reporting periods)
statements have been adopted; the information concerning capital and reserves and the profit or loss may be omitted where the undertaking concerned does not publish its balance sheet and is not controlled by another undertaking
Notes to financial statements for the three month period together with detailed information on financial performance and events relevant to understanding changes in financial statements are available in PDF document "Business results 1/1/2021 – 30/6/2021" which has been simultaneously published with this document on HANFA (Croatian Financial Services Supervisory Agency), Zagreb Stock Exchange and Issuers web pages.
| Year: | 2021 | |||
|---|---|---|---|---|
| Quarter: | 2 | |||
| Registration number (MB): | 3474771 | Issuer's home Member State code: | HR | |
| Entity's registration number (MBS): | 40020883 | |||
| Personal identification number (OIB): |
36201212847 | LEI: | 529900DUWS1DGNEK4C68 | |
| Institution code: | 30577 | |||
| Name of the issuer: | Valamar Riviera d.d. | |||
| Postcode and town: | 52440 | Poreč | ||
| Street and house number: | Stancija Kaligari 1 | |||
| E-mail address: | [email protected] | |||
| Web address: | www.valamar-riviera.com | |||
| Number of employees (end of the reporting period): |
4040 | |||
| Consolidated report: | KN | (KN-not consolidated/KD-consolidated) | ||
| Audited: | RN | (RN-not audited/RD-audited) | ||
| Names of subsidiaries (according to IFRS): |
Registered office: | MB: | ||
| Bookkeeping firm: | No | |||
| Contact person: | Sopta Anka |
Audit firm:
Certified auditor:
(only name and surname of the contact person)
Telephone: 052 408 188
E-mail address: [email protected]
(name of the audit firm)
(name and surname)
M.P. (potpis osobe ovlaštene za zastupanje)
| ADP | Last day of the pre | At the reporting date | |
|---|---|---|---|
| Item | code | ceding business year | of the current period |
| 1 A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID |
2 001 |
3 | 4 |
| B) FIXED ASSETS (ADP 003+010+020+031+036) | 002 | 5.324.136.157 | 5.130.714.386 |
| I INTANGIBLE ASSETS (ADP 004 to 009) | 003 | 42.275.329 | 37.755.250 |
| 1 Research and development | 004 | ||
| 2 Concessions, patents, licences, trademarks, software and other rights | 005 | 35.550.820 | 28.442.896 |
| 3 Goodwill | 006 | 6.567.609 | 6.567.609 |
| 4 Advances for the purchase of intangible assets | 007 | ||
| 5 Intangible assets in preparation | 008 | 156.900 | 2.744.745 |
| 6 Other intangible assets | 009 | ||
| II TANGIBLE ASSETS (ADP 011 to 019) 1 Land |
010 011 |
4.292.520.443 629.012.020 |
4.156.677.712 661.696.162 |
| 2 Buildings | 012 | 2.722.066.344 | 2.605.107.323 |
| 3 Plant and equipment | 013 | 409.245.659 | 372.987.483 |
| 4 Tools, working inventory and transportation assets | 014 | 91.158.729 | 75.731.182 |
| 5 Biological assets | 015 | ||
| 6 Advances for the purchase of tangible assets | 016 | 159.973 | 28.263 |
| 7 Tangible assets in preparation | 017 | 366.577.576 | 379.497.500 |
| 8 Other tangible assets | 018 | 70.357.714 | 58.117.685 |
| 9 Investment property | 019 | 3.942.428 | 3.512.114 |
| III FIXED FINANCIAL ASSETS (ADP 021 to 030) | 020 | 774.869.872 | 659.540.394 |
| 1 Investments in holdings (shares) of undertakings within the group | 021 | 727.328.038 | 611.880.017 |
| 2 Investments in other securities of undertakings within the group | 022 | ||
| 3 Loans, deposits, etc. to undertakings within the group | 023 | ||
| 4 Investments in holdings (shares) of companies linked by virtue of participating interests 5 Investment in other securities of companies linked by virtue of participating interests |
024 025 |
47.191.530 | 47.191.530 |
| 6 Loans, deposits etc. to companies linked by virtue of participating interests | 026 | ||
| 7 Investments in securities | 027 | 121.271 | 246.780 |
| 8 Loans, deposits, etc. given | 028 | 89.033 | 82.067 |
| 9 Other investments accounted for using the equity method | 029 | ||
| 10 Other fixed financial assets | 030 | 140.000 | 140.000 |
| IV RECEIVABLES (ADP 032 to 035) | 031 | ||
| 1 Receivables from undertakings within the group | 032 | ||
| 2 Receivables from companies linked by virtue of participating interests | 033 | ||
| 3 Customer receivables | 034 | ||
| 4 Other receivables | 035 | ||
| V DEFERRED TAX ASSETS | 036 | 214.470.513 | 276.741.030 |
| C) CURRENT ASSETS (ADP 038+046+053+063) I INVENTORIES (ADP 039 to 045) |
037 038 |
583.232.857 27.296.274 |
548.157.406 29.893.843 |
| 1 Raw materials and consumables | 039 | 26.356.791 | 28.680.137 |
| 2 Work in progress | 040 | ||
| 3 Finished goods | 041 | ||
| 4 Merchandise | 042 | 939.483 | 1.213.706 |
| 5 Advances for inventories | 043 | ||
| 6 Fixed assets held for sale | 044 | ||
| 7 Biological assets | 045 | ||
| II RECEIVABLES (ADP 047 to 052) | 046 | 32.385.214 | 46.618.566 |
| 1 Receivables from undertakings within the group | 047 | 186.829 | 2.150.381 |
| 2 Receivables from companies linked by virtue of participating interests | 048 | 330.822 | 213.617 |
| 3 Customer receivables 4 Receivables from employees and members of the undertaking |
049 050 |
23.158.299 277.464 |
34.297.436 3.434.337 |
| 5 Receivables from government and other institutions | 051 | 4.795.299 | 1.298.931 |
| 6 Other receivables | 052 | 3.636.501 | 5.223.864 |
| III CURRENT FINANCIAL ASSETS (ADP 054 to 062) | 053 | 578.131 | 1.156.283 |
| 1 Investments in holdings (shares) of undertakings within the group | 054 | ||
| 2 Investments in other securities of undertakings within the group | 055 | ||
| 3 Loans, deposits, etc. to undertakings within the group | 056 | 28.300 | 28.300 |
| 4 Investments in holdings (shares) of companies linked by virtue of participating interests | 057 | ||
| 5 Investment in other securities of companies linked by virtue of participating interests | 058 | ||
| 6 Loans, deposits etc. to companies linked by virtue of participating interests | 059 | ||
| 7 Investments in securities | 060 | ||
| 8 Loans, deposits, etc. given | 061 | 549.831 | 483.754 |
| 9 Other financial assets IV CASH AT BANK AND IN HAND |
062 063 |
522.973.238 | 644.229 470.488.714 |
| D) PREPAID EXPENSES AND ACCRUED INCOME | 064 | 46.702.706 | 81.256.415 |
| E) TOTAL ASSETS (ADP 001+002+037+064) | 065 | 5.954.071.720 | 5.760.128.207 |
F) OFF-BALANCE SHEET ITEMS 066 54.261.380 54.211.658
| ADP | Last day of the preced | At the reporting date | |
|---|---|---|---|
| Item 1 |
code 2 |
ing business year 3 |
of the current period 4 |
| LIABILITIES | |||
| A) CAPITAL AND RESERVES (ADP 068 to 070+076+077+083+086+089) | 067 | 2.385.224.020 | 2.174.126.732 |
| I INITIAL (SUBSCRIBED) CAPITAL | 068 | 1.672.021.210 | 1.672.021.210 |
| II CAPITAL RESERVES | 069 | 5.710.563 | 5.710.563 |
| III RESERVES FROM PROFIT (ADP 071+072-073+074+075) | 070 | 98.247.551 | 98.247.551 |
| 1 Legal reserves | 071 | 83.601.061 | 83.601.061 |
| 2 Reserves for treasury shares | 072 | 136.815.284 | 136.815.284 |
| 3 Treasury shares and holdings (deductible item) | 073 | -124.418.266 | -124.418.266 |
| 4 Statutory reserves | 074 | ||
| 5 Other reserves | 075 | 2.249.472 | 2.249.472 |
| IV REVALUATION RESERVES | 076 | ||
| V FAIR VALUE RESERVES AND OTHER (ADP 078 to 082) | 077 | 872 | 103.790 |
| 1 Financial assets at fair value through other comprehensive income (i.e. available for sale) 2 Cash flow hedge - effective portion |
078 079 |
872 | 103.790 |
| 3 Hedge of a net investment in a foreign operation - effective portion | 080 | ||
| 4 Other fair value reserves | 081 | ||
| 5 Exchange differences arising from the translation of foreign operations (consolidation) | 082 | ||
| VI RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 084-085) | 083 | 917.793.503 | 538.614.166 |
| 1 Retained profit | 084 | 917.793.503 | 538.614.166 |
| 2 Loss brought forward | 085 | ||
| VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 087-088) | 086 | -308.549.679 | -140.570.548 |
| 1 Profit for the business year | 087 | ||
| 2 Loss for the business year | 088 | 308.549.679 | 140.570.548 |
| VIII MINORITY (NON-CONTROLLING) INTEREST | 089 | ||
| B) PROVISIONS (ADP 091 to 096) | 090 | 113.213.704 | 107.219.349 |
| 1 Provisions for pensions, termination benefits and similar obligations | 091 | 21.180.405 | 21.180.405 |
| 2 Provisions for tax liabilities | 092 | ||
| 3 Provisions for ongoing legal cases | 093 | 36.378.988 | 30.384.633 |
| 4 Provisions for renewal of natural resources | 094 | ||
| 5 Provisions for warranty obligations | 095 | ||
| 6 Other provisions | 096 | 55.654.311 | 55.654.311 |
| C) LONG-TERM LIABILITIES (ADP 098 to 108) | 097 | 2.524.889.178 | 2.842.363.547 |
| 1 Liabilities to undertakings within the group | 098 | ||
| 2 Liabilities for loans, deposits, etc. of undertakings within the group | 099 | ||
| 3 Liabilities to companies linked by virtue of participating interests | 100 | ||
| 4 Liabilities for loans, deposits etc. of companies linked by virtue of participating interests | 101 | ||
| 5 Liabilities for loans, deposits etc. | 102 | ||
| 6 Liabilities to banks and other financial institutions | 103 | 2.474.586.439 | 2.793.377.976 |
| 7 Liabilities for advance payments 8 Liabilities to suppliers |
104 105 |
||
| 9 Liabilities for securities | 106 | ||
| 10 Other long-term liabilities | 107 | 36.995.567 | 36.090.775 |
| 11 Deferred tax liability | 108 | 13.307.172 | 12.894.796 |
| D) SHORT-TERM LIABILITIES (ADP 110 to 123) | 109 | 865.350.845 | 542.209.668 |
| 1 Liabilities to undertakings within the group | 110 | 135.664 | 239.585 |
| 2 Liabilities for loans, deposits, etc. of undertakings within the group | 111 | ||
| 3 Liabilities to companies linked by virtue of participating interests | 112 | 40.997 | |
| 4 Liabilities for loans, deposits etc. of companies linked by virtue of participating interests | 113 | ||
| 5 Liabilities for loans, deposits etc. | 114 | ||
| 6 Liabilities to banks and other financial institutions | 115 | 693.967.037 | 221.680.387 |
| 7 Liabilities for advance payments | 116 | 61.767.845 | 165.637.118 |
| 8 Liabilities to suppliers | 117 | 49.993.663 | 75.623.585 |
| 9 Liabilities for securities | 118 | 6.625.196 | |
| 10 Liabilities to employees | 119 | 15.921.399 | 31.552.835 |
| 11 Taxes, contributions and similar liabilities | 120 | 4.664.984 | 27.607.037 |
| 12 Liabilities arising from the share in the result | 121 | 9.600 | |
| 13 Liabilities arising from fixed assets held for sale | 122 | ||
| 14 Other short-term liabilities | 123 | 32.265.457 | 19.828.124 |
| E) ACCRUALS AND DEFERRED INCOME | 124 | 65.393.973 | 94.208.911 |
| F) TOTAL – LIABILITIES (ADP 067+090+097+109+124) | 125 | 5.954.071.720 | 5.760.128.207 |
| G) OFF-BALANCE SHEET ITEMS | 126 | 54.261.380 | 54.211.658 |
Item ADP code Same period of the previous year Current period Cummulative Quarter Cummulative Quarter 1 2 3 4 5 6 I OPERATING INCOME (ADP 002 to 006) 001 106.036.238 72.369.752 230.242.165 202.135.487 1 Income from sales with undertakings within the group 002 6.110.938 486.419 3.981.191 2.772.393 2 Income from sales (outside group) 003 87.275.248 61.444.674 215.048.862 197.387.818 3 Income from the use of own products, goods and services 004 103.879 52.505 108.648 57.201 4 Other operating income with undertakings within the group 005 51.320 39.458 308.501 254.751 5 Other operating income (outside the group) 006 12.494.853 10.346.696 10.794.963 1.663.324 II OPERATING EXPENSES (ADP 008+009+013+017+018+019+022+029) 007 402.909.872 173.087.907 409.841.392 253.743.446 1 Changes in inventories of work in progress and finished goods 008 2 Material costs (ADP 010 to 012) 009 73.619.738 31.332.978 106.053.805 82.331.718 a) Costs of raw materials and consumables 010 39.097.652 19.032.163 58.758.994 47.474.497 b) Costs of goods sold 011 430.166 407.765 2.323.533 1.553.349 c) Other external costs 012 34.091.920 11.893.050 44.971.278 33.303.872 3 Staff costs (ADP 014 to 016) 013 84.782.876 25.439.509 72.292.745 50.194.469 a) Net salaries and wages 014 45.441.001 7.601.016 40.734.874 29.684.606 b) Tax and contributions from salary costs 015 26.194.109 12.255.096 22.097.362 14.081.561 c) Contributions on salaries 016 13.147.766 5.583.397 9.460.509 6.428.302 4 Depreciation 017 199.157.947 99.525.087 196.395.787 98.247.914 5 Other costs 018 41.886.903 16.056.008 31.112.196 21.135.328 6 Value adjustments (ADP 020+021) 019 180.259 70.288 19.070 11.090 a) fixed assets other than financial assets 020 b) current assets other than financial assets 021 180.259 70.288 19.070 11.090 7 Provisions (ADP 023 to 028) 022 a) Provisions for pensions, termination benefits and similar obligations 023 b) Provisions for tax liabilities 024 c) Provisions for ongoing legal cases 025 d) Provisions for renewal of natural resources 026 e) Provisions for warranty obligations 027 f) Other provisions 028 8 Other operating expenses 029 3.282.149 664.037 3.967.789 1.822.927 III. FINANCIAL INCOME (ADP 031 to 040) 030 9.185.260 23.733.436 23.288.473 33.936.932 1 Income from investments in holdings (shares) of undertakings within the group 031 2 Income from investments in holdings (shares) of companies linked by virtue of participating interests 032 3 Income from other long-term financial investment and loans granted to undertakings within the group 033 4 Other interest income from operations with undertakings within the group 034 5 Exchange rate differences and other financial income from operations with undertakings within the group 035 6 Income from other long-term financial investments and loans 036 7 Other interest income 037 56.740 17.422 24.808 13.382 8 Exchange rate differences and other financial income 038 1.362.126 15.456.550 17.444.693 30.799.292 9 Unrealised gains (income) from financial assets 039 2.013.750 2.620.380 1.419.814 10 Other financial income 040 7.766.394 6.245.714 3.198.592 1.704.444 IV FINANCIAL EXPENSES (ADP 042 to 048) 041 85.687.509 22.938.120 30.823.818 16.456.226 1 Interest expenses and similar expenses with undertakings within the group 042 2 Exchange rate differences and other expenses from operations with undertakings within the group 043 3 Interest expenses and similar expenses 044 26.856.574 22.356.413 28.915.574 14.795.087 4 Exchange rate differences and other expenses 045 41.827.766 581.707 16.435 1.205.420 5 Unrealised losses (expenses) from financial assets 046 16.154.772 6 Value adjustments of financial assets (net) 047 7 Other financial expenses 048 848.397 1.891.809 455.719 V SHARE IN PROFIT FROM UNDERTAKINGS LINKED BY VRITUE OF PARTICIPATING INTERESTS 049 VI SHARE IN PROFIT FROM JOINT VENTURES 050 VII SHARE IN LOSS OF COMPANIES LINKED BY VIRTUE OF PARTICIPATING INTEREST 051 VIII SHARE IN LOSS OF JOINT VENTURES 052 IX TOTAL INCOME (ADP 001+030+049+050) 053 115.221.498 96.103.188 253.530.638 236.072.419 X TOTAL EXPENDITURE (ADP 007+041+051+052) 054 488.597.381 196.026.027 440.665.210 270.199.672 XI PRE-TAX PROFIT OR LOSS (ADP 053-054) 055 -373.375.883 -99.922.839 -187.134.572 -34.127.253 1 Pre-tax profit (ADP 053-054) 056 2 Pre-tax loss (ADP 054-053) 057 -373.375.883 -99.922.839 -187.134.572 -34.127.253
| Item | ADP code |
Same period of the previous year |
Current period | |||
|---|---|---|---|---|---|---|
| Cummulative | Quarter | Cummulative | Quarter | |||
| 1 | 2 | 3 | 4 | 5 | 6 | |
| XII INCOME TAX | 058 | -88.583.080 | -88.583.080 | -46.564.024 | 2.476.443 | |
| XIII PROFIT OR LOSS FOR THE PERIOD (ADP 055-059) | 059 | -284.792.803 | -11.339.759 | -140.570.548 | -36.603.696 | |
| 1. Profit for the period (ADP 055-059) | 060 | |||||
| 2. Loss for the period (ADP 059-055) | 061 | -284.792.803 | -11.339.759 | -140.570.548 | -36.603.696 |
| XIV PRE-TAX PROFIT OR LOSS OF DISCONTINUED OPERATIONS (ADP 063-064) |
062 | |
|---|---|---|
| 1 Pre-tax profit from discontinued operations | 063 | |
| 2 Pre-tax loss on discontinued operations | 064 | |
| XV INCOME TAX OF DISCONTINUED OPERATIONS | 065 | |
| 1 Discontinued operations profit for the period (ADP 062-065) | 066 | |
| 2 Discontinued operations loss for the period (ADP 065-062) | 067 |
| XVI PRE-TAX PROFIT OR LOSS (ADP 055+062) | 068 |
|---|---|
| 1 Pre-tax profit (ADP 068) | 069 |
| 2 Pre-tax loss (ADP 068) | 070 |
| XVII INCOME TAX (ADP 058+065) | 071 |
| XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 068-071) | 072 |
| 1 Profit for the period (ADP 068-071) | 073 |
| 2 Loss for the period (ADP 071-068) | 074 |
| XIX PROFIT OR LOSS FOR THE PERIOD (ADP 076+077) | 075 |
|---|---|
| 1 Attributable to owners of the parent | 076 |
| 2 Attributable to minority (non-controlling) interest | 077 |
| I PROFIT OR LOSS FOR THE PERIOD | 078 | -284.792.803 | -11.339.759 | -140.570.548 | -36.603.696 |
|---|---|---|---|---|---|
| II OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX (ADP 080 to 087) |
079 | -67.824 | 25.056 | 125.509 | 98.635 |
| III ITEMS THAT WILL NOT BE RECLASSIFIED TO PROFIT OR LOSS (ADP 081 to 085) |
080 | -67.824 | 25.056 | 125.509 | 98.635 |
| 1 Changes in revaluation reserves of fixed tangible and intangible assets | 081 | ||||
| 2 Gains or losses from subsequent measurement of equity instruments at fair value through other comprehensive income |
082 | -67.824 | 25.056 | 125.509 | 98.635 |
| 3 Fair value changes of financial liabilities at fair value through statement of profit or loss, attributable to changes in their credit risk |
083 | ||||
| 4 Actuarial gains/losses on the defined benefit obligation | 084 | ||||
| 5 Other items that will not be reclassified | 085 | ||||
| 6 Income tax relating to items that will not be reclassified | 086 | -12.209 | 4.510 | 22.591 | 17.754 |
| IV ITEMS THAT MAY BE RECLASSIFIED TO PROFIT OR LOSS (ADP 088 to 095) |
087 | ||||
| 1 Exchange rate differences from translation of foreign operations | 088 | ||||
| 2 Gains or losses from subsequent measurement of debt securities at fair value through other comprehensive income |
089 | ||||
| 3 Profit or loss arising from effective cash flow hedging | 090 | ||||
| 4 Profit or loss arising from effective hedge of a net investment in a foreign operation |
091 | ||||
| 5 Share in other comprehensive income/loss of companies linked by virtue of participating interests |
092 | ||||
| 6 Changes in fair value of the time value of option | 093 | ||||
| 7 Changes in fair value of forward elements of forward contracts | 094 | ||||
| 8 Other items that may be reclassified to profit or loss | 095 | ||||
| 9 Income tax relating to items that may be reclassified to profit or loss | 096 |
| Item | ADP code |
Same period of the previous year |
Current period | ||
|---|---|---|---|---|---|
| Cummulative | Quarter | Cummulative | Quarter | ||
| 1 | 2 | 3 | 4 | 5 | 6 |
| V NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 080+087- 086 - 096) | 097 | -55.615 | 20.546 | 102.918 | 80.881 |
| VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 078+097) | 098 | -284.848.418 | -11.319.213 | -140.467.630 | -36.522.815 |
| VII COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 100+101) | 099 |
|---|---|
| 1 Attributable to owners of the parent | 100 |
| 2 Attributable to minority (non-controlling) interest | 101 |
| ADP | Same period of the | Current | |
|---|---|---|---|
| Item | code | previous year | period |
| 1 | 2 | 3 | 4 |
| CASH FLOW FROM OPERATING ACTIVITIES 1 Pre-tax profit |
001 | -373.375.883 | -187.134.572 |
| 2 Adjustments (ADP 003 to 010): | 002 | 273.243.455 | 197.278.388 |
| a) Depreciation | 003 | 199.157.947 | 196.395.787 |
| b) Gains and losses from sale and value adjustment of fixed tangible and intangible assets | 004 | -1.858.747 | -920.059 |
| c) Gains and losses from sale and unrealised gains and losses and value adjustment of financial assets |
005 | -77.885 | |
| d) Interest and dividend income | 006 | -30.543 | -7.057 |
| e) Interest expenses | 007 | 27.704.971 | 30.807.384 |
| f) Provisions | 008 | -65.354 | -5.994.355 |
| g) Exchange rate differences (unrealised) | 009 | 38.907.199 | -17.447.283 |
| h) Other adjustments for non-cash transactions and unrealised gains and losses | 010 | 9.505.867 | -5.556.029 |
| I Cash flow increase or decrease before changes in working capital (ADP 001+002) | 011 | -100.132.428 | 10.143.816 |
| 3 Changes in the working capital (ADP 013 to 016) | 012 | 86.758.043 | 115.238.692 |
| a) Increase or decrease in short-term liabilities | 013 | 121.141.210 | 168.342.414 |
| b) Increase or decrease in short-term receivables | 014 | -32.812.367 | -50.506.153 |
| c) Increase or decrease in inventories | 015 | -1.570.800 | -2.597.569 |
| d) Other increase or decrease in working capital | 016 | ||
| II Cash from operations (ADP 011+012) | 017 | -13.374.385 | 125.382.508 |
| 4 Interest paid | 018 | -11.436.113 | -16.040.554 |
| 5 Income tax paid | 019 | ||
| A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019) | 020 | -24.810.498 | 109.341.954 |
| CASH FLOW FROM INVESTMENT ACTIVITIES | |||
| 1 Cash receipts from sales of fixed tangible and intangible assets | 021 | 3.016.839 | 3.048.809 |
| 2 Cash receipts from sales of financial instruments | 022 | ||
| 3 Interest received | 023 | 33.317 | 12.139 |
| 4 Dividends received | 024 | ||
| 5 Cash receipts from repayment of loans and deposits | 025 | 119.363 | 103.044 |
| 6 Other cash receipts from investment activities | 026 | 1.110.110 | |
| III Total cash receipts from investment activities (ADP 021 to 026) | 027 | 3.169.519 | 4.274.102 |
| 1 Cash payments for the purchase of fixed tangible and intangible assets | 028 | -365.342.782 | -30.718.176 |
| 2 Cash payments for the acquisition of financial instruments | 029 | ||
| 3 Cash payments for loans and deposits for the period | 030 | -140.107 | -30.000 |
| 4 Acquisition of a subsidiary, net of cash acquired | 031 | ||
| 5 Other cash payments from investment activities | 032 | ||
| IV Total cash payments from investment activities (ADP 028 to 032) | 033 | -365.482.889 | -30.748.176 |
| B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027+033) | 034 | -362.313.370 | -26.474.074 |
| CASH FLOW FROM FINANCING ACTIVITIES | |||
| 1 Cash receipts from the increase in initial (subscribed) capital | 035 | ||
| 2 Cash receipts from the issue of equity financial instruments and debt financial instruments |
036 | ||
| 3 Cash receipts from credit principals, loans and other borrowings | 037 | 469.256.501 | 150.118.740 |
| 4 Other cash receipts from financing activities | 038 | 1.674.883 | 1.756.034 |
| V Total cash receipts from financing activities (ADP 035 to 038) | 039 | 470.931.384 | 151.874.774 |
| 1 Cash payments for the repayment of credit principals, loans and other borrowings and debt financial instruments |
040 | -6.355.689 | -286.167.378 |
| 2 Cash payments for dividends | 041 | ||
| 3 Cash payments for finance lease | 042 | ||
| 4 Cash payments for the redemption of treasury shares and decrease in initial (subscribed) capital |
043 | ||
| 5 Other cash payments from financing activities | 044 | -1.782.639 | -1.059.800 |
| VI Total cash payments from financing activities (ADP 040 to 044) | 045 | -8.138.328 | -287.227.178 |
| C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039+045) | 046 | 462.793.056 | -135.352.404 |
| 1 Unrealised exchange rate differences in respect of cash and cash equivalents | 047 | ||
| D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP 020+034+046+047) | 048 | 75.669.188 | -52.484.524 |
| E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | 049 | 247.849.272 | 522.973.238 |
| F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (ADP 048+049) | 050 | 323.518.460 | 470.488.714 |
| 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 (availa ble 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 transla tion of foreign operations |
Retained profit / loss brought forward |
Profit/loss for the business year |
Total attributable to owners of the parent |
Minority (non-con trolling) 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 | 1.672.021.210 | 5.710.563 83.601.061 136.815.284 124.418.266 | 61.473 | 539.646.072 377.006.905 2.690.444.302 | 2.690.444.302 | |||||||||||||
| 2 Changes in accounting policies | 02 | ||||||||||||||||||
| 3 Correction of errors | 03 | ||||||||||||||||||
| 4 Balance on the first day of the previous business year (restated) (ADP 01 to 03) | 04 | 1.672.021.210 | 5.710.563 83.601.061 136.815.284 124.418.266 | 61.473 | 539.646.072 377.006.905 2.690.444.302 | 2.690.444.302 | |||||||||||||
| 5 Profit/loss of the period | 05 | -308.549.679 -308.549.679 | -308.549.679 | ||||||||||||||||
| 6 Exchange rate differences from translation of foreign operations | 06 | ||||||||||||||||||
| 7 Changes in revaluation reserves of fixed tangible and intangible assets | 07 | ||||||||||||||||||
| 8 Gains or losses from subsequent measurement of financial assets at fair value | 08 | -73.904 | -73.904 | -73.904 | |||||||||||||||
| through other comprehensive income (available for sale) | |||||||||||||||||||
| 9 Profit or loss arising from effective cash flow hedge | 09 | ||||||||||||||||||
| 10 Profit or loss arising from effective hedge of a net investment in a foreign operation 11 Share in other comprehensive income/loss of companies linked by virtue of |
10 | ||||||||||||||||||
| participating interests | 11 | ||||||||||||||||||
| 12 Actuarial gains/losses on the defined benefit obligation | 12 | ||||||||||||||||||
| 13 Other changes in equity unrelated to owners | 13 | ||||||||||||||||||
| 14 Tax on transactions recognised directly in equity | 14 | 13.303 | 13.303 | 13.303 | |||||||||||||||
| 15 Decrease in initial (subscribed) capital (other than arising from the pre | 15 | ||||||||||||||||||
| bankruptcy settlement procedure or from the reinvestment of profit) | |||||||||||||||||||
| 16 Decrease in initial (subscribed) capital arising from the pre-bankruptcy settlement procedure |
16 | ||||||||||||||||||
| 17 Decrease in initial (subscribed) capital arising from the reinvestment of profit | 17 | ||||||||||||||||||
| 18 Redemption of treasury shares/holdings | 18 | ||||||||||||||||||
| 19 Payments from members/shareholders | 19 | ||||||||||||||||||
| 20 Payment of share in profit/dividend | 20 | ||||||||||||||||||
| 21 Other distributions and payments to members/shareholders | 21 | 2.249.472 | 1.140.526 | 3.389.998 | 3.389.998 | ||||||||||||||
| 22 Transfer to reserves according to the annual schedule | 22 | 377.006.905 -377.006.905 | |||||||||||||||||
| 23 Increase in reserves arising from the pre-bankruptcy settlement procedure | 23 | ||||||||||||||||||
| 24 Balance on the last day of the previous business year reporting period | 24 | 1.672.021.210 | 5.710.563 83.601.061 136.815.284 124.418.266 | 2.249.472 | 872 | 917.793.503 -308.549.679 2.385.224.020 | 2.385.224.020 | ||||||||||||
| (ADP 04 to 23) | |||||||||||||||||||
| 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 | -60.601 | -60.601 | -60.601 | |||||||||||||||
| II COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD (ADP 05+25) |
26 | -60.601 | -308.549.679 -308.610.280 | -308.610.280 | |||||||||||||||
| III TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD RECOGNISED | |||||||||||||||||||
| DIRECTLY IN EQUITY (ADP 15 to 23) | 27 | 2.249.472 | 378.147.431 -377.006.905 | 3.389.998 | 3.389.998 | ||||||||||||||
| Current period | |||||||||||||||||||
| 1 Balance on the first day of the previous business year | 28 | 1.672.021.210 | 5.710.563 83.601.061 136.815.284 124.418.266 | 2.249.472 | 872 | 917.793.503 -308.549.679 2.385.224.020 | 2.385.224.020 | ||||||||||||
| 2 Changes in accounting policies | 29 | ||||||||||||||||||
| 3 Correction of errors 4 Balance on the first day of the previous business year (restated) (ADP 28 to 30) |
30 31 |
1.672.021.210 | 5.710.563 83.601.061 136.815.284 124.418.266 | 2.249.472 | 872 | 917.793.503 -308.549.679 2.385.224.020 | 2.385.224.020 | ||||||||||||
| 5 Profit/loss of the period | 32 | -140.570.548 -140.570.548 | -140.570.548 | ||||||||||||||||
| 6 Exchange rate differences from translation of foreign operations | 33 | ||||||||||||||||||
| 7 Changes in revaluation reserves of fixed tangible and intangible assets | 34 | ||||||||||||||||||
| 8 Gains or losses from subsequent measurement of financial assets at fair value | |||||||||||||||||||
| through other comprehensive income (available for sale) | 35 | 125.509 | 125.509 | 125.509 | |||||||||||||||
| 9 Profit or loss arising from effective cash flow hedge | 36 | ||||||||||||||||||
| 10 Profit or loss arising from effective hedge of a net investment in a foreign operation | 37 | ||||||||||||||||||
| 11 Share in other comprehensive income/loss of companies linked by virtue of participating interests |
38 | ||||||||||||||||||
| 12 Actuarial gains/losses on the defined benefit obligation | 39 | ||||||||||||||||||
| 13 Other changes in equity unrelated to owners | 40 | ||||||||||||||||||
| 14 Tax on transactions recognised directly in equity | 41 | -22.591 | -22.591 | -22.591 | |||||||||||||||
| 15 Decrease in initial (subscribed) capital (other than arising from the pre | |||||||||||||||||||
| bankruptcy settlement procedure or from the reinvestment of profit) | 42 | ||||||||||||||||||
| 16 Decrease in initial (subscribed) capital arising from the pre-bankruptcy | 43 | ||||||||||||||||||
| settlement procedure | |||||||||||||||||||
| 17 Decrease in initial (subscribed) capital arising from the reinvestment of profit | 44 | ||||||||||||||||||
| 18 Redemption of treasury shares/holdings | 45 | ||||||||||||||||||
| 19 Payments from members/shareholders | 46 | ||||||||||||||||||
| 20 Payment of share in profit/dividend 21 Other distributions and payments to members/shareholders |
47 48 |
1.756.034 | 1.756.034 | 1.756.034 | |||||||||||||||
| 22 Carryforward per annual plane | 49 | -380.935.371 308.549.679 | -72.385.692 | -72.385.692 | |||||||||||||||
| 23 Increase in reserves arising from the pre-bankruptcy settlement procedure | 50 | ||||||||||||||||||
| 24 Balance on the last day of the previous business year reporting period | |||||||||||||||||||
| (ADP 31 to 50) | 51 | 1.672.021.210 | 5.710.563 83.601.061 136.815.284 124.418.266 | 2.249.472 | 103.790 | 538.614.166 -140.570.548 2.174.126.732 | 2.174.126.732 | ||||||||||||
| 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 | 102.918 | 102.918 | 102.918 | |||||||||||||||
| II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP 32 to 52) | 53 | 102.918 | -140.570.548 -140.467.630 | -140.467.630 | |||||||||||||||
| III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED DIRECTLY IN EQUITY (ADP 42 to 50) |
54 | -379.179.337 308.549.679 | -70.629.658 | -70.629.658 |
(drawn up for quarterly reporting periods)
Name of the issuer: Valamar Riviera d.d.
Personal identification number OIB: 36201212847
Reporting period: 01.01.2021. to 30.06.2021. Notes to financial statements for quarterly periods include:
(drawn up for quarterly reporting periods)
statements have been adopted; the information concerning capital and reserves and the profit or loss may be omitted where the undertaking concerned does not publish its balance sheet and is not controlled by another undertaking
Notes to financial statements for the three month period together with detailed information on financial performance and events relevant to understanding changes in financial statements are available in PDF document "Business results 1/1/2021 – 30/6/2021" which has been simultaneously published with this document on HANFA (Croatian Financial Services Supervisory Agency), Zagreb Stock Exchange and Issuers web pages.
Valamar Riviera d.d., Poreč ("the Company") has been established and registered in accordance with Croatian laws and regulations. The Company is registered with the Commercial Court in Pazin. The principle activity of the Company is the provision of accommodation in hotels, resorts and campsites, food preparation and catering services as well as the preparation and serving of beverages. Company's business is of seasonal character. Company's registration number (MBS) is: 040020883, while the Company's personal identification number (OIB) is: 36201212847. The registered office of Valamar Riviera d.d. is in Poreč, Stancija Kaligari 1. Company's share capital amounts to HRK 1,672,021 thousand and comprises 126,027,542 ordinary shares with no prescribed nominal value.
Valamar Riviera Group consists of Valamar Riviera d.d., Poreč, joint-stock company for tourism services (the Parent Company) and its subsidiaries (the Group) as follows:
The Company's and Group's financial statements for the half-year ended on 30 June 2021 have been prepared in accordance with International Accounting Standard (IAS) 34 – Interim Financial Reporting. The financial statements have been prepared under the historical cost method, except for the financial assets at fair value through profit or loss and financial assets. The consolidated and unconsolidated financial statements for the half-year period do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Company's and Group's annual financial statements as at 31 December 2020 which are available on HANFA (Croatian Financial Services Supervisory Agency), Zagreb Stock Exchange and Group's web pages.
The merger of Palme turizam d.o.o. Dubrovnik into Valamar Riviera d.d. was entered in the court register on 7 May 2021, pursuant to the Decision of the Commercial Court in Pazin No. Tt-21/2510-3 dated 7-5-2021. The legal effect of the said merger started as of 8 May 2021, when Valamar Riviera d.d. became the universal legal successor of Palme turizam d.o.o. (Note 14).
The consolidated and unconsolidated financial statements for the half-year period ended 30 June 2021 were approved by the Management Board in Poreč on 28 July 2021. The consolidated and unconsolidated financial statements for the six month period, i.e. for the half-year period ended 30 June 2021, have not been audited.
Company's and Group's half-year financial statements have been prepared on a going concern basis. Based on current expectations, Management believes, although potentially negative short-term effects on Company's and Group's revenues and cash inflows are expected, it is not probable that the situation will have significant negative impact on the Company's and Group's ability to fulfil its obligations nor prolonged impact on Company's and Group's revenues and overall business which can affect the Company's and Group's ability to continue as a going concern in the foreseeable future.
There were no changes in critical accounting estimates used for preparation of financial statements for the half-year period ended 30 June 2021 comparing to those used for the preparation of the annual financial statements for the year ended 31 December 2020.
At the end of the tourist season and until the preparation of the annual financial statements for 2021, the Company and the Group will make an assessment of existing indications of impairment of non-current tangible and intangible assets.
The Company and the Group need to determine the ownership status for cca 3.24 million m2 and cca 3.54 million m2 respectively, pursuant to the provisions of the Act on unappraised land (hereinafter: the Act), that entered into force on 2 May 2020. The Act lays down the obligation to determine and establish, within the prescribed deadlines, real estate on the assessed parts of the camp, hotel, tourist complexes and other building land as the subject matter of the right of ownership of the Company and the Group; and real estate on the parts of the camp, hotel, tourist complexes and other building land that have not been assessed as the subject matter of the right of ownership of the Republic of Croatia or local governments. As regards the parts of land owned by the Republic of Croatia or local governments, the Company and the Group will conclude a lease agreement for a period of 50 years. The unit amount of the rent and the manner of and deadlines for the payment will be laid down by a regulation adopted by the Government. At the moment of creating this document, the regulation has not been adopted yet; therefore it has not been possible to determine right-of-use assets and liabilities since the entry into force of the Act, i.e. since 2 May 2020. After the adoption of the regulation on prices, the Company and the Group will revise total surface areas that will be the subject matter of the lease agreement and they will assess the value of the right-of-use assets and liabilities in accordance with the provisions of IFRS 16. In 2020 and the half-year period ended 30 June 2021, the Company and the Group were not able to determine the object of the lease and the value of the lease.
Under the assumption of the lowest/highest price spread reaching HRK 6/12/m2, lowest/highest discount rate reaching 4/8% and with the correction of surface areas that will be subject to the lease +/- 10%, the Company and the Group assessed the value of the right-of-use assets and liabilities on the day of the entry into force of the Act, which would amount to a range from cca HRK 212,522 thousand to cca HRK 921,895 thousand for the Company, while the assessment for the Group would range from cca HRK 224,536 thousand to cca HRK 974,010 thousand.
The accounting policies adopted in the preparation of the financial statements for the half-year period ended 30 June 2021 are consistent with those followed in the preparation of the Company's and Group's annual financial statements for the year ended 31 December 2020.
The fair value of financial instruments traded in active markets is based on quoted market prices at the reporting date. The quoted market price used for financial assets held by the Company and the Group is the current bid price. The fair value of financial instruments that are not traded in the active market is determined by using valuation techniques. The Company and the Group use a variety of methods and make assumptions that are based on market conditions existing at each reporting date.
The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values.
Quoted market prices for similar instruments are used for long-term debt. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Company and the Group for similar financial instruments.
IFRS 13 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources; unobservable inputs reflect the Company's market assumptions. These two types of inputs have created the following fair value hierarchy:
| (in thousands of HRK) | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| As at 31 December 2020 | ||||
| Assets measured at fair value | ||||
| Financial assets - equity securities | 317 | - | - | 317 |
| Total assets measured at fair value | 317 | - | - | 317 |
| Liabilities measured at fair value | ||||
| Derivative financial instruments | - | 16,982 | - | 16,982 |
| Total liabilities measured at fair value | - | 16,982 | - | 16,982 |
| As at 30 June 2021 | ||||
| Assets measured at fair value | ||||
| Financial assets - equity securities | 442 | - | - | 442 |
| Derivative financial instruments | - | 644 | - | 644 |
| Total assets measured at fair value | 442 | 644 | - | 1,086 |
| Liabilities measured at fair value | ||||
| Derivative financial instruments | - | 12,176 | - | 12,176 |
| Total liabilities measured at fair value | - | 12,176 | - | 12,176 |
The following table presents assets measured at fair value as at
| COMPANY | ||||
|---|---|---|---|---|
| (in thousands of HRK) | Level 1 | Level 2 | Level 3 | Total |
| As at 31 December 2020 | ||||
| Assets measured at fair value | ||||
| Financial assets - equity securities | 261 | - | - | 261 |
| Total assets measured at fair value | 261 | - | - | 261 |
| Liabilities measured at fair value | ||||
| Derivative financial instruments | - | 16,982 | - | 16,982 |
| Total liabilities measured at fair value | - | 16,982 | - | 16,982 |
| As at 30 June 2021 | ||||
| Assets measured at fair value | ||||
| Financial assets - equity securities | 387 | - | - | 387 |
| Derivative financial instruments | - | 644 | - | 644 |
| Total assets measured at fair value | 387 | 644 | - | 1,022 |
| Liabilities measured at fair value | ||||
| Derivative financial instruments | - | 12,176 | - | 12,176 |
| Total liabilities measured at fair value | - | 12,176 | - | 12,176 |
Following the management approach of IFRS 8, operating segments are reported in accordance with the internal reporting provided to the Group's Management (the chief operating decision-makers) who are responsible for allocating resources to the reportable segments and assessing its performance.
The Group records operating revenues and expenses by types of services rendered in three basic segments: hotels and apartments, camping and other business segments.
GROUP
Revenue was divided between segments according to the organisational principle, where all of the income generated from camping profit centres was reported in the camping segment, and all of the income generated from hotel and apartment profit centres was reported in that segment. Other business segments include revenue from laundry services, other rentals of properties, revenue generated from the central services and central kitchens, revenue from retail, agency revenue and revenue from the accommodation of employees.
The segment information related to reportable segments for the half-year period ended 30 June 2020 is as follows:
| (in thousands of HRK) | Hotels and apartments |
Camps | Other business segments |
Total |
|---|---|---|---|---|
| Total sales | 62,587 | 41,320 | 22,035 | 125,942 |
| Inter-segment revenue | (212) | (13) | (16,468) | (16,693) |
| Revenue from external customers | 62,375 | 41,307 | 5,567 | 109,249 |
| Depreciation and amortisation | 154,421 | 65,089 | 30,644 | 250,154 |
| Net finance income/(expense) net | (39,377) | (20,136) | (23,582) | (83,095) |
| Write-off of fixed assets | 25 | 1 | 171 | 197 |
| Profit/(loss) of segment | (14,960) | 22,501 | (80,805) | (73,264) |
The segment information related to reportable segments for the half-year period ended 30 June 2021 is as follows:
| (in thousands of HRK) | Hotels and apartments |
Camps | Other business segments |
Total |
|---|---|---|---|---|
| Total sales | 141,953 | 94,701 | 31,569 | 268,223 |
| Inter-segment revenue | (266,005) | (14,429) | (18,908) | (19,189) |
| Revenue from external customers | 141,687 | 94,687 | 12,661 | 249,034 |
| Depreciation and amortisation | 156,582 | 66,092 | 27,834 | 250,508 |
| Net finance income/(expense) net | (9,164) | (4,010) | 3,534 | (9,640) |
| Write-off of fixed assets | 103 | 203 | 538 | 844 |
| Profit/(loss) of segment | 50,804 | 57,102 | (69,786) | 38,120 |
The segment information related to total assets and liabilities by reportable segments are as follows:
| GROUP | ||||
|---|---|---|---|---|
| (in thousands of HRK) | Hotels and | Camps | Other business | Total |
| apartments | segments | |||
| As at 31 December 2020 | ||||
| Total assets | 3,537,741 | 1,515,516 | 714,073 | 5,767,330 |
| Total liabilities | 2,275,139 | 1,020,575 | 508,117 | 3,803,831 |
| As at 30 June 2021 | ||||
| Total assets | 3,421,490 | 1,469,804 | 690,930 | 5,582,224 |
| Total liabilities | 2,327,865 | 1,011,483 | 465,816 | 3,805,164 |
All hotels, apartments and camps (operating assets) are located in the Republic of Croatia, except the hotel owned by the company Valamar Obertauern GmbH located in Austria.
Reconciliation of the profit per segment with profit before tax is as follows:
| (in thousands of HRK) | January -June 2020 |
January -June 2021 |
|---|---|---|
| Revenue | ||
| Revenue from segments | 125,942 | 268,223 |
| Inter-segment revenue | (16,693) | (19,189) |
| Total revenue | 109,249 | 249,034 |
| Profit | ||
| Profit from segments | (73,264) | 38,120 |
| Other unallocated expenses | (286,357) | (270,723) |
| Elimination of inter-segment profit/(loss) | (82,949) | (3,278) |
| Total profit before tax | (442,570) | (235,881) |
The reconciliation of segment assets and liabilities with the Group's assets and liabilities is as follows:
| (in thousands of HRK) | As at 31 December 2020 | As at 30 June 2021 | ||
|---|---|---|---|---|
| Assets | Liabilities | Assets | Liabilities | |
| Segment assets/liabilities | 5,767,330 | 3,803,832 | 5,582,224 | 3,805,164 |
| Hotels and apartments segment | 3,537,741 | 2,275,139 | 3,421,490 | 2,327,865 |
| Camps segment | 1,515,516 | 1,020,575 | 1,469,804 | 1,011,483 |
| Other business segment | 714,073 | 508,118 | 690,930 | 465,816 |
| Unallocated | 1,112,253 | 211,894 | 1,168,328 | 256,121 |
| Investments in associate | 46,024 | - | 44,411 | - |
| Other financial assets | 317 | - | 1,086 | - |
| Loans and deposits | 702 | - | 599 | - |
| Cash and cash equivalents | 665,933 | - | 627,740 | - |
| Income tax receivable | 733 | - | 740 | - |
| Other receivables | 67,134 | - | 105,076 | - |
| Deferred tax assets/liabilities | 331,410 | 58,292 | 388,676 | 56,065 |
| Other liabilities | - | 65,206 | - | 131,210 |
| Liabilities for investments in associate | - | 13,994 | - | 5,244 |
| Derivative financial assets/ liabilities | - | 16,982 | - | 12,176 |
| Provisions | - | 57,420 | - | 51,426 |
| Total | 6,879,583 | 4,015,726 | 6,750,552 | 4,061,285 |
The Group's hospitality services are provided in Croatia and Austria to domestic and foreign customers. The Group's sales revenues are classified according to the customers' origin.
| (in thousands of HRK) | January -June 2020 |
January -June 2021 |
|---|---|---|
| Revenue from sales to domestic customers | 19,877 | 55,327 |
| Revenue from sales to foreign customers | 89,372 | 193,707 |
| 109,249 | 249,034 |
NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR PERIOD ENDED 30 JUNE 2021 / continued
Foreign sales revenues can be classified according to the number of overnights based on the customers' origin, as follows
| GROUP | ||||
|---|---|---|---|---|
| (in thousands of HRK) | January -June 2020 |
% | January -June 2021 |
% |
| EU members | 85,828 | 96.03 | 182,822 | 94.38 |
| Other | 3,544 | 3.97 | 10,885 | 5.62 |
| 89,372 | 100.00 | 193,707 | 100.00 |
The total amount of government grants related to the impact of the pandemic during the half-year period ended 30 June 2021, amounting to HRK 90,277 thousand for the Group (half-year period 2020: HRK 60,174 thousand), and HRK 72,732 thousand for the Company (half-year period 2020: HRK 52,530 thousand).
The following table shows the information of the total cost of employees during the period broken down into the amount directly debiting the costs of the period and the amount capitalised on the value of the assets during the period:
| GROUP | COMPANY | |||
|---|---|---|---|---|
| (in thousands of HRK) | January – June 2020 |
January – June 2021 |
January – June 2020 |
January – June 2021 |
| Staff costs for the period /i/ | 96,997 | 81,148 | 84,783 | 72,293 |
| Net salaries | 52,316 | 45,915 | 45,441 | 40,735 |
| Tax and contributions from salary costs | 29,983 | 24,690 | 26,194 | 22,097 |
| Contributions on salaries | 14,698 | 10,543 | 13,148 | 9,461 |
| Capitalised salaries costs | 3,728 | 4,130 | 3,004 | 3,716 |
| Net salaries | 2,365 | 2,615 | 1,919 | 2,355 |
| Tax and contributions from salary costs | 959 | 1,029 | 769 | 930 |
| Contributions on salaries | 404 | 486 | 316 | 431 |
| Total staff costs | 100,725 | 85,278 | 87,787 | 76,009 |
/i/ Total Covid-19 grants for the half-year period related to net salaries compensation are included in the staff cost of the Group in the amount of HRK 87,831 thousand (half-year period 2020: HRK 53,759 thousand) and for the Company HRK 72,732 thousand (half-year period 2020: HRK 46,385 thousand).
During the half-year period of 2021 Company's average number of employees is 2,359 (half-year period 2020: 2,230), while the Group's average number of employees is 2,836 (half-year period 2020: 2,582).
During the period in 2021 the Company and the Group estimate the period income tax expense according to the IAS 34 provisions.
| GROUP | COMPANY | |||||
|---|---|---|---|---|---|---|
| (in thousands of HRK) | January – June 2020 |
January – June 2021 |
January – June 2020 |
January – June 2021 |
||
| Current tax | - | 5 | - | - | ||
| Deferred tax | (121,198) | (59,533) | (88,583) | (46,564) | ||
| Tax (income)/expense | (121,198) | (59,528) | (88,583) | (46,564) |
Movement overview of deferred tax assets and liabilities in 2021:
| (in thousands of HRK) | GROUP | COMPANY |
|---|---|---|
| As at 1 January 2021 | 331,410 | 214,471 |
| Increase of tax assets – merger effect (Note 14) | - | 16,141 |
| Credited/(debited) to the income | 57,296 | 46,129 |
| Credited/ (debited) to the other comprehensive income | (30) | - |
| As at 30 June 2021 | 388,676 | 276,741 |
| (in thousands of HRK) | GROUP | COMPANY |
|---|---|---|
| As at 1 January 2021 | 58,292 | 13,307 |
| Credited/(debited) to the income | (2,237) | (435) |
| Credited/ (debited) to the other comprehensive income | 10 | 23 |
| As at 30 June 2021 | 56,065 | 12,895 |
Basic earnings/(loss) per share are calculated by dividing the profit/(loss) for the period of the Group by the weighted average number of shares ordinary in issue during the period, excluding the ordinary shares purchased by the Company and held as treasury shares.
Diluted earnings/(loss) per share are equal to basic, since the Group did not have any convertible instruments and share options outstanding during both periods.
| GROUP | ||
|---|---|---|
| January – June 2020 |
January – June 2021 |
|
| Profit/(loss) attributable to equity holders (in thousands of HRK) | (298,753) | (158,114) |
| Weighted average number of shares | 121.887.907 | 121.887.907 |
| Basic/diluted earnings/(loss) per share (in HRK) | (2,45) | (1,30) |
During the half-year ended 30 June 2021, the Group acquired assets in the amount of HRK 48,342 thousand (half-year period 2020: HRK 468,123 thousand), while the Company acquired assets in the amount of HRK 30,718 thousand (half-year period 2020: HRK 365,734 thousand).
During the half-year ended 30 June 2021, the Group disposed the assets with a net book value of HRK 2,134 thousand (half-year period 2020: HRK 1,854 thousand), resulting in a net gain on disposal of HRK 950 thousand (half-year period 2020: HRK 1,467 thousand).
During the half-year ended 30 June 2021, the Company disposed the assets with a net book value of HRK 2,129 thousand (halfyear period 2020: HRK 1,136 thousand), resulting in a net gain on disposal of HRK 920 thousand (half-year period 2020: HRK 1,886 thousand).
The following table shows bank borrowings and lease liabilities (IFRS 16) by maturity:
| GROUP | COMPANY | ||||
|---|---|---|---|---|---|
| (in thousands of HRK) | Total liabilities on 30 June 2021 |
Maturity over 5 years |
Total liabilities on 30 June 2021 |
Maturity over 5 years |
|
| Bank borrowings | 3,373,289 | 1,313,929 | 3,015,058 | 1,151,889 | |
| Lease liabilities under IFRS 16 | 9,488 | 2,400 | 10,221 | 2,299 | |
| Total | 3,382,777 | 1,316,329 | 3,025,279 | 1,154,188 |
As at 30 June 2021 non-current and current bank borrowings of the Company amounted HRK 3,015,058 thousand of which HRK 2,945,390 thousand is secured with a pledge over property facilities and movable property, while the rest of HRK 69,669 thousand is secured with Company's promissory notes.
As at 30 June 2021 non-current and current bank borrowings of the Group amounted HRK 3,373,289 thousand of which HRK 3,295,995 thousand is secured with a pledge over property facilities and movable property, while the rest of HRK 77,294 thousand is secured primarily with Group's promissory notes.
As at 31 December 2020 in current borrowings is presented the part of non-current borrowings in the amount of HRK 185,009 thousand for which the Company and the Group received waiver for 2020 after balance sheet date, in accordance with IAS 1. Due to that, in the reports for 2021 current borrowings are presented as a part of non-current borrowings.
The contracted capital commitments of the Company in respect to investments in tourism facilities as at 30 June 2021 amounted to HRK 518,976 thousand (30 June 2020: HRK 535,243 thousand), while for the Group amounted to HRK 527,278 thousand (30 June 2020: HRK 589,653 thousand).
The company is a loan guarantor to subsidiary Valamar Obertauern GmbH. The maximum estimated amount of the guarantee that can be realized is HRK 50,377 thousand. The subsidiary loan is secured with a pledge over Valamar Obertauern GmbH property facilities. The Company estimates the minimum possibility of realization of the guarantee.
The following table shows total capital and reserves and profit or loss for the last business year of associate as at 31 December 2020:
| (in thousands of HRK) | ||||
|---|---|---|---|---|
| ASSOCIATE | Country | Ownership | Total capital and reserves |
Profit/(loss) for the year |
| Helios Faros d.d., Hvar | Croatia | 20.00% | 222,671 | (8,218) |
Related party transactions were as follows: GROUP
| (in thousands of HRK) | January – June 2020 |
January – June 2021 |
|---|---|---|
| Sale of services | ||
| Associate with participating interest | - | 1,213 |
| - | 1,213 | |
| Purchase of services | ||
| Associate with participating interest | - | 56 |
| Other related parties to the owners and corporate governance bodies | 69 | 211 |
| 69 | 267 | |
| As at 31 December 2020 |
As at 30 June 2021 |
|
| Trade and other receivable | ||
| Associate with participating interest | 331 | 214 |
| 331 | 214 | |
| Liabilities | ||
| Associate with participating interest | - | 41 |
| Other related parties to the owners and corporate governance bodies | 84 | - |
| 84 | 41 |
Related party transactions were as follows: COMPANY
| (in thousands of HRK) | January – June 2020 |
January – June 2021 |
|---|---|---|
| Sale of services | ||
| Subsidiaries | 5,548 | 4,418 |
| Associate with participating interest | - | 1,213 |
| 5,548 | 5,631 | |
| Purchase of services | ||
| Subsidiaries | 464 | 469 |
| Associate with participating interest | - | 56 |
| Other related parties to the owners and corporate governance bodies | 69 | 211 |
| 533 | 736 | |
| As at 31 December 2020 |
As at 30 June 2021 |
|
| Trade and other receivable | ||
| Subsidiaries | 161 | 2,124 |
| Associate with participating interest | 331 | 214 |
| 492 | 2,338 | |
| Other receivables | ||
| Subsidiaries | 26 | 26 |
| 26 | 26 | |
| Trade and other payables | ||
| Subsidiaries | 136 | 295 |
| Associate with participating interest | - | 41 |
| Other related parties to the owners and corporate governance bodies | 84 | - |
| 220 | 336 | |
| Loans given | ||
| Subsidiaries | 28 | 28 |
| 28 | 28 |
The merger of Palme turizam d.o.o. into the Company was entered in the court register on 7 May 2021. The legal effect of the merger started as of 8 May 2021. After the registration of the merger, Palme turizam d.o.o. ceased to exist and the Company became the universal legal successor of the merged company: all the assets, rights and liabilities of Palme turizam d.o.o. were transferred to the Company.
Statement of comprehensive income of the Group includes the results of the merged companies for the whole current year. Statement of comprehensive income of the Company includes the results of the merged companies from the merger date.
Assets and liabilities in 2021 at merger date are:
| (in thousands of HRK) | 7 May 2021 |
|---|---|
| Assets | |
| Property, plant and equipment | 25,753 |
| Deferred tax assets (Note 7) | 16,141 |
| Trade and other receivables | 72 |
| Cash and cash equivalents | 1,110 |
| Liabilities | |
| Payables and other liabilities | (14) |
| Net assets acquired | 43,062 |
| Less: elimination of the Company's share in subsidiary | (115,448) |
| Net effect on equity at merger | (72,386) |
Stancija Kaligari 1 52440 Poreč, Hrvatska T +385 (52) 408 002 F +385 (52) 451 608 E [email protected] W www.valamar.com
Stancija Kaligari 1 52440 Poreč, Hrvatska T +385 (52) 408 159 F +385 (52) 451 608 E [email protected] W www.valamar-riviera.com
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