Quarterly Report • Jul 26, 2016
Quarterly Report
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BUSINESS RESULTS 1/1/2016 - 30/6/2016
QUARTERLY Valamar Isabella Island Resort 4*&5*, Poreč (INTERIM) REPORT OF THE GROUP AND THE COMPANY VALAMAR RIVIERA D.D.
for the period from 1 January 2016 to 30 June 2016
The positive trend of higher cost efficiency continues, as reflected in the operating expenses growth of 12% (5% excluding business performance in destination Baška) to the amount of HRK 345 million (310 million in 2015). The increase in operating expenses arises mainly from the increased operating volume.
Valamar Riviera has submitted to the Restructuring and Sale Centre (CERP) a binding offer for the purchase of 50.08% of the equity capital of the company Imperial d.d. Rab. Valamar Riviera has concluded a Collaboration Contract with the company AZ d.o.o. mandatory pension fund management company establishing a joint action towards the company Imperial d.d. Rab.
4
| Significant business events | 5 |
|---|---|
| Results of the Group | 8 |
| Results of the Company | 15 |
| Investments 2016 | 16 |
| Investments 2017 | 18 |
| The risks of the Company and the Group | 20 |
| Corporate Governance | 23 |
| Related-party transactions | 24 |
| Branch offices of the Company | 24 |
| Share | 25 |
| Corporate Social Responsability | 27 |
| Awards and Certificates 2016 | 29 |
| Integrated report 2015 | 30 |
| Other information | 32 |
| Responsibility for the quarterly financial statements | 33 |
| Quarterly financial statements | 34 |
Valamar Riviera is the leading tourism company and one of the leading tourism groups in the Republic of Croatia. It is one of the major investors in the Croatian tourism sector, its investments reaching almost HRK 2.8 billion in the last 13 years. The Valamar Riviera Group operates at four attractive destinations, covering the area from Istria and Kvarner to Dubrovnik, and manages around 10 percent of the categorised tourist accommodation. It is the owner of the Valamar Hotels and Resorts and Camping Adriatic brands. Its hospitality facilities portfolio encompasses twenty-five hotels and resorts and thirteen campsites. With more than 18,000 accommodation units, it can accommodate approximately 48,000 guests a day, which makes it the biggest tourism group in Croatia in terms of its capacities. Valamar Riviera pursues interests of all its stakeholders, ranging from several local communities, over 21,000 shareholders and 4,100 employees engaged by the Group in the high season, to a number of partners. These interests have been actively promoted through a sustainable growth and development concept based on the principles of corporate social responsibility. Further growth and development will be achieved by increasing operational efficiency, investing further into portfolio, pursuing acquisitions and partnerships, developing destinations where it operates, and training Valamar Riviera's employees.
On 31 March 2016, the company Hoteli Baška d.d. was merged with the company Valamar Riviera d.d. Accordingly, Valamar Riviera became a universal successor to Hoteli Baška. Since Valamar Riviera was the sole shareholder of the company Hoteli Baška, in compliance with Article 531(1) of the Companies Act, the Valamar Riviera's General
Assembly was not convoked. Please note that on 13 January 2016, the subsidiaries Baškaturist d.o.o., Mirta Bašćanska d.o.o., and Vala Bašćanska d.o.o., which were 100%-owned by Valamar Riviera, were merged with the subsidiary Hoteli Baška d.d.; following the mergers, Valamar Riviera d.d. has become the sole shareholder of the company Hoteli Baška. Consolidation of the hospitality property portfolio, management, and shareholding structure in a single strategic company has allowed for a more transparent corporate governance and streamlined operations, including additional strengthening of the balance sheet assets.
In the Baška destination Valamar Riviera has recognised a clear potential to apply its experience gained at other destinations where it pursues its business operations. Continued investments in employees, products, services, and experience have created a new value for shareholders. This merger provides an opportunity to create an additional value from the synergy of two companies for both the employees of the merged company Hoteli Baška and the local community. In the forthcoming period, the key activities will be planning and elaboration of future investments at the Baška destination, as well as development of the whole Krk destination, where Valamar Riviera has taken over the leading position.
On 27 April 2016, the Valamar Riviera's General Assembly took place establishing the following:
2013 and from Valamar Riviera's treasury shares. (Namely, on 27 May 2016, Valamar Riviera's shareholders, who have opted so, were paid out the dividend in rights, i.e. Company shares.)
At its session held on 5 March 2016, the Supervisory Board approved an investment in Family Life Bellevue Resort 4* in Rabac to the amount of HRK 196.7 million to be realised for the 2017 season. Furthermore, approval was given to establish a strategic business collaboration with the companies TUI Northern Europe Limited, TUI UK, and TUI Nordic Holding AB. It encompasses the branding of the Family Life Bellevue Resort as the first Family Life concept in Croatia in accordance with TUI's standards and a three-year business collaboration (2017, 2018, and 2019 seasons). Over a period of three years, TUI plans to bring approximately 80,000 guests from new emitting air traffic markets, thus ensuring more than 400,000 overnight stays. The Family Life Bellevue Resort project is a part of the strategic plan to develop the Rabac destination into a 4* holiday destination in the period 2016-2018, including a EUR 56 million investment framework.
On 23 March 2016, Valamar Riviera concluded a Credit Contract with the Croatian Bank for Reconstruction and Development to the amount of EUR 24,291,114 paid out in kuna value, with the final due date in 2033. These funds are earmarked for investments in quality standard improvements at the Poreč, Rabac, Krk, and Dubrovnik destinations for the 2016 season.
On 30 June 2016, pursuant to a decision of the Commercial Court in Pazin, the company Bastion upravljanje d.o.o. merged with the company Valamar Riviera d.d. Accordingly, Valamar Riviera d.d. became a universal successor to the merged company Bastion upravljanje d.o.o.
On 5 July 2016, Valamar Riviera submitted to the Restructuring and Sale Centre (CERP)1 a binding offer for the purchase of 318,446 shares of the company Imperial hotelijerstvo, ugostiteljstvo i turizam d.d. with the registered office in Rab, in compliance with the terms and conditions of the Tender Documentation for the purchase of shares of the company Imperial d.d. Rab. Shares offered for sale account for 50.08% of the equity capital of Imperial d.d. which at the offered price of HRK 819 per share amounts to HRK 260,807,274. Also, Valamar Riviera d.d. concluded a Collaboration Contract with the company AZ d.o.o. mandatory pension fund management company from Zagreb. The Contract establishes a joint action towards the company Imperial d.d. Rab.
1 Restructuring and Sale Centre is a legal entity with public authorities that performs professional activities in the scope and competence stipulated under the Law on management and disposal of assets owned by Republic of Croatia and other regulations.
The Company's Management Board hereby presents the quarterly financial statements for the second quarter of 2016 (from 1 April 2016 to 30 June 2016) and for the first half of 2016 (from 1 January 2016 to 30 June 2016), noting that the presented statements must be viewed in the context of the above mentioned changes resulting from mergers, and that they provide information on the status of the Company and the Group, as well as on significant events.
The Company's income statement for the period under consideration comprises the data for the merged company Valamar hoteli i ljetovališta d.o.o. for the period following the merger, i.e. as of 28 February 2015, as well as the data for the merged company Hoteli Baška d.d. for the period following the merger, i.e. as of 1 April 2016. Please note that the data for 2016 are not fully comparable to the data for the previous period, as the latter do not comprise until the moment of the merger the data for the merged companies Valamar hoteli i ljetovališta d.o.o. and Hoteli Baška d.d.
The Group's income statement for the second quarter of 2016 and for the first half of 2016 comprises the data for the following companies: Puntižela d.o.o., Bastion upravljanje d.o.o., Elafiti Babin kuk d.o.o., Magične stijene d.o.o., Palme turizam d.o.o., Pogača Babin Kuk d.o.o., Bugenvilia d.o.o., and Hoteli Baška d.d., while the data for the companies Mirta Bašćanska d.o.o., Vala Bašćanska d.o.o., and Baškaturist d.o.o. are included as of the day of their merger to the company Hoteli Baška d.d., i.e. as of 13 January 2016. Thus, the data for 2016 are not fully comparable to the data for the previous period, as the latter do not comprise the data for the following companies: Hoteli Baška d.d., Mirta Bašćanska d.o.o., Vala Bašćanska d.o.o., and Baškaturist d.o.o.
| (in HRK) | 1 - 6/2015 | 1 - 6/2016 | 2016/2015 |
|---|---|---|---|
| Total revenues | 372,378,656 | 507,163,870 | 36.2% |
| Sales revenues | 342,821,905 | 419,648,604 | 22.4% |
| Board revenues (accomodation and board revenues)3 | 272,296,533 | 323,055,046 | 18.6% |
| Operating expenses4 | 309,707,886 | 345,385,320 | 11.5% |
| EBITDA5 | 30,028,265 | 86,311,609 | 187.4% |
| Extraordinary operations result and one-off items6 | 3,373,891 | 7,848,819 | 132.6% |
| Adjusted EBITDA7 | 33,402,156 | 78,462,790 | 134.9% |
| EBIT | -85,004,968 | -45,132,237 | 46.9% |
| Adjusted EBIT7 | -81,631,077 | -37,283,418 | 54.3% |
| EBT | -109,262,314 | -2,658,239 | 97.6% |
| EBT margin2 | -30.7% | -0.6% | 3,010 bp |
| 31/12/2015 | 30/6/2016 | 2016/2015 | |
| Net debt8 | 1,082,520,078 | 1,155,588,339 | 6.7% |
| Cash and cash equivalents | 318,755,282 | 326,736,357 | 2.5% |
| 1 - 6/2015 | 1 - 6/2016 | 2016/2015 | |
|---|---|---|---|
| Number of accommodation units (capacity) | 16,241 | 18,072 | 11.3% |
| Accommodation units sold | 696,040 | 783,650 | 12.6% |
| Overnights | 1,270,034 | 1,434,810 | 13.0% |
| ADR9 (in HRK) | 391 | 412 | 5.4% |
Overnights and ADR
Revenues and accommodation units sold
Excellent results were achieved in the first half of 2016. Continuous investments to increase the competitive edge and raise the quality of services and facilities and the acquisition of Baška companies in combination with the optimisation of prices, marketing mix, and sales channels have resulted in a 22.5%, i.e. HRK 79.8 million increase in operating income to a HRK 435.2 million level.
High-quality sales activity preparation for the first-minute offering in the pre-season resulted in a better basis for managing sales channels and in a stronger start booking in May and June. A multitude of implemented interesting visit motives and experiences offered to guests in combination with M.I.C.E.10 events had a very positive impact leading to increased business efficiency in the pre-season. The optimum control of the group channel opened up room for strengthening the individual one in May. In June, a decrease with regards to groups resulting from an inadequate holiday spread was compensated by the M.I.C.E. segment at south destinations, supported by a growth in other sales channels. During the first six months of 2016, 783,650 accommodation units were sold, representing a 12.6% increase. A 5.4% increase in average daily rate to HRK 412 in combination with higher physical indicators has resulted in a HRK 50.8 million growth in board revenues. Sales revenues have improved by HRK 76.8 million to HRK 419.6 million has resulted from an increase in board revenues (+18.6%) and the sale of à la carte food and beverages (+34%). Other operating income has increased by 23.6%. Financial income is up HRK 55.0 million, mainly coming from the sale of the share portfolio and foreign exchange gains. This has resulted in a HRK 134.8 million increase in total revenues to HRK 507.2 million.
National sales revenues amount to HRK 44.1 million, accounting for 8.7% of total revenues (10.1% in 2015). They are 17.5% above the previous comparable period. Sales revenues generated on international markets amount to HRK 375.5 million, accounting for 74.0% of total revenues (82.0% in 2015). They are 23.0% above the previous comparable period. Other operating and financial income accounts for 17.3% of total revenues (7.9% in 2015).
The first half of 2016 saw to further positive effects of business efficiency and consolidation as well as restructuring. Despite a multiple increase in operating volume, operating expenses are up only 5.5%, excluding destination Baška operating expenses. Increased profitability and more efficient business activities reflect in a 187.4% EBITDA growth. EBITDA has improved by HRK 56.3 million to HRK 86.3 million. Adjusted EBITDA11 amounts to HRK 78.5 million, marking a 134.9% growth, while in the Group's loss has decreased by HRK 107.9 million to HRK 0.8 million (in 2015 the loss amounted to HRK 108.6 million). An indicator of positive future expectations is the multiple improvement of operating business, driven by successful marketing, sales, and business activities.
10 M.I.C.E. = Meetings, incentives, conferencing, exhibitions.
11 Adjustments were made for (i) extraordinary income (in the amount of HRK 11.4 million in the first half of 2016, and HRK 10.6 million in the comparative period of last year), (ii) extraordinary expenses (in the amount of HRK 2.0 million in the first half of 2016 and HRK 4.6 million in the comparative period of the last year), and (iii) termination benefit costs (in the amount of 1.5 million in the first half of 2016, and HRK 9.4 million in the comparative period of the last year).
| (in HRK) | 1 - 6/2015 | 1 - 6/2016 | 2016/2015 |
|---|---|---|---|
| Operating expenses4 | 309,707,886 | 345,385,320 | 11.5% |
| Total operating expenses | 440,414,953 | 480,337,361 | 9.1% |
| Material costs | 147,151,247 | 148,171,187 | 0.7% |
| Staff costs | 126,494,254 | 145,598,450 | 15.1% |
| Depreciation and amortisation | 114,797,426 | 131,402,096 | 14.5% |
| Other expenditures | 47,403,991 | 50,855,450 | 7.3% |
| Provisions and value adjustments | 235,807 | 41,750 | -82.3% |
| Other operating expenses | 4,332,228 | 4,268,428 | -1.5% |
In the first half of 2016 total operating expenses are up 9.1%. They are driven by an increase in the operating volume and this year's business of Baška destination. Excluding this year's business of Baška destination, operating expenses are higher by modest 1.9%. Such a modest growth confirms the continuation of the positive operational efficiency, management consolidation, and restructuring trend at all levels across Valamar Riviera.
Accounting for 30.8% of total operating expenses (33.4% in 2015), material costs have increased by only 0.7% to HRK 148.2 million. Staff costs amount to HRK 145.6 million, accounting for 30.3% of total operating expenses (28.7% in 2015). A 15.1% increase in staff costs in the first half of 2016 comes from facilities being open for a longer period of time, from the takeover of employees from the newly acquired Baška companies, and partially from an increase in employees' salaries (1.5% in June 2015, a 0.5% addition for years of service, and a 2% increase in June 2016). Depreciation and amortisation amount to HRK 131.4 million (HRK 114.8 million in 2015), accounting for 27.4% of total operating expenses (26.1% in 2015). Their 14.5% growth is driven by a wider consolidation scope and the earlier intensive investment cycle. Other operating expenses amount to HRK 4.3 million, indicating a HRK 1.5% decrease. Value adjustments amount to HRK 42 thousand, indicating a HRK 194 thousand decrease. Other expenses are up 7.3%, i.e. HRK 3.4 million, primarily as a result of this year's business of Baška destination.
In the first half of 2016 financial income amounts to HRK 72.0 million, indicating a HRK 55.0 million increase compared to the same period last year. The biggest growth item is other financial income with a HRK 36.1 million increase, coming mainly from the sale of the Group's share portfolio to the amount of HRK 35.2 million. Interest income, foreign exchange differences, dividends, and similar income from operations with third parties are up HRK 16.4 million. As a result of the kuna strengthening by almost 2% in relation to euro in the first half of 2016, foreign exchange gains from settling unrealised balance sheet items and repaying credits have recorded the highest growth to the amount of HRK 15.4 million. This has led to a decrease in liabilities denominated in euro and disclosed in kuna in the balance sheet. Despite an increase in the amount of free cash funds in the first half of 2016 in relation to the comparable period last year, a further decrease in market interest rates has impacted the retention of interest income generated from time deposits, a vista accounts, and placements, which was almost flat to the last year's level (a HRK 0.3 million growth). Unrealised expenses (losses) from financial assets are up HRK 2.5 million, coming from the valuation of EUR/HRK forward transactions contracted for 2016 with a view to protecting against foreign exchange risks.
Financial expenses amount to HRK 29.5 million and are HRK 11.7 million below the comparable period last year. Interest expenses, foreign exchange differences, and other expenses from operations with third parties record a HRK 16.2 million decrease. The valuation of contracted IRSs and forwards in the first half of 2016 has resulted in an additional liability, i.e. in HRK 3.3 million financial expenses. Other financial expenses are up HRK 1.2 million, out of which HRK 0.9 million refers to expenses arising from the sale of the Group's share portfolio. The most significant change compared to the same period last year are foreign exchange losses from settling unrealised balance sheet items, recording a HRK 22.1 million decrease as a result of the mentioned kuna strengthening in relation to euro. A HRK 7.4 million increase in interest expenses in the first half of this year is a result of an increase in credit debt driven by the withdrawal of funds from granted credit lines for financing the 2015/16 investment cycle and the consolidation of the Baška companies followed by their merger in the second half of this year and the carryover of their debt.
12 Classified accordiong to the Quarterly Business Financial Statement (TFI POD- RDG.
Assets and liabilities
As at 30 June 2016, the total value of the Group's assets is 4.2% higher compared to 31 December 2015. The total share capital and reserves have decreased from HRK 1,901.7 million to HRK 1,796.9 million, mostly as a result of the generated loss. Total non-current liabilities are up 5.8%, amounting to HRK 1,409.7 million as at 30 June 2016, as a result of the withdrawal of funds from granted credit lines for financing the 2015/16 investment cycle. Total current liabilities amount to HRK 418.4 million and are 82.3% higher compared to 31 December 2015. This comes from normally higher advances received from customers (HRK 157.2 million) and trade payables (HRK 36.7 million).
Cash and cash equivalents as at 30 June 2016 amount to HRK 326.7 million, their 2.5% increase, compared to the end of 2015, being a result of the excellent operating performance. Cash and cash equivalents position indicates a strong further cash potential from operating activities, which, together with external borrowing, provides for a smooth continuation of future investing activities and potential acquisitions.
| HOTELS AND RESORTS | Total | Premium Upscale |
Midscale | Economy | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 - 6/2015 | 1 - 6/2016 | 2016/ 2015 |
1 - 6/2015 | 1 - 6/2016 | 2016/ 2015 |
1 - 6/2015 | 1 - 6/2016 | 2016/ 2015 |
1 - 6/2015 | 1 - 6/2016 | 2016/ 2015 |
1 - 6/2015 | 1 - 6/2016 | 2016/ 2015 |
|
| Number of accommodation units | 7,248 | 7,927 | 9.4% | 1,037 | 1,037 | 0.0% | 1,422 | 1,422 | 0.0% | 2,440 | 3,112 | 27.5% | 2,349 | 2,356 | 0.3% |
| Accommodation units sold | 391,291 | 461,128 | 17.8% | 60,875 | 87,439 | 43.6% | 82,159 | 84,534 | 2.9% | 148,209 | 189,303 | 27.7% | 100,048 | 99,852 | -0.2% |
| Overnights | 787,650 | 900,624 | 14.3% | 110,063 | 143,990 | 30.8% | 167,057 | 173,742 | 4.0% | 291,718 | 376,562 | 29.1% | 218,812 | 206,330 | -5.7% |
| ADR9 | 556 | 568 | 2.2% | 883 | 856 | -3.1% | 704 | 720 | 2.3% | 495 | 497 | 0.4% | 327 | 319 | -2.4% |
| Board revenues (in HRK) | 217,648,957 | 261,807,848 | 20.3% | 53,775,200 | 74,859,969 | 39.2% | 57,832,070 | 60,897,220 | 5.3% | 73,343,297 | 94,174,134 | 28.4% | 32,698,390 | 31,876,525 | -2.5% |
| CAMPING RESORTS | Total | Premium | Upscale | Midscale | Economy | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 - 6/2015 | 1 - 6/2016 | 2016/ 2015 |
1 - 6/2015 | 1 - 6/2016 | 2016/ 2015 |
1 - 6/2015 | 1 - 6/2016 | 2016/ 2015 |
1 - 6/2015 | 1 - 6/2016 | 2016/ 2015 |
1 - 6/2015 | 1 - 6/2016 | 2016/ 2015 |
|
| Number of accommodation units | 8,994 | 10,145 | 12.8% | 475 | 511 | 7.6% | 4,049 | 4,437 | 9.6% | 2,844 | 3,387 | 19.1% | 1,626 | 1,810 | 11.3% |
| Accommodation units sold | 304,749 | 322,522 | 5.8% | 23,492 | 23,840 | 1.5% | 144,871 | 144,899 | 0.0% | 89,273 | 104,018 | 16.5% | 47,113 | 49,765 | 5.6% |
| Overnights | 482,384 | 534,186 | 10.7% | 55,788 | 57,830 | 3.7% | 219,322 | 244,144 | 11.3% | 141,162 | 166,619 | 18.0% | 66,112 | 65,593 | -0.8% |
| ADR9 | 179 | 190 | 6.1% | 246 | 276 | 12.2% | 187 | 208 | 11.2% | 167 | 166 | -0.6% | 146 | 145 | -0.7% |
| Board revenues (in HRK) | 54,647,576 | 61,247,198 | 12.1% | 5,772,298 | 6,568,312 | 13.8% | 27,103,952 | 30,184,912 | 11.4% | 14,908,696 | 17,298,023 | 16.0% | 6,862,630 | 7,195,950 | 4.9% |
| DESTINATION | Poreč | Rabac | Krk | Dubrovnik | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 - 6/2015 | 1 - 6/2016 | 2016/ 2015 |
1 - 6/2015 | 1 - 6/2016 | 2016/ 2015 |
1 - 6/2015 | 1 - 6/2016 | 2016/ 2015 |
1 - 6/2015 | 1 - 6/2016 | 2016/ 2015 |
|
| Number of accommodation units | 10,592 | 10,632 | 0.4% | 1,913 | 2,065 | 7.9% | 1,776 | 3,414 | 92.2% | 1,961 | 1,961 | 0.0% |
| Accommodation units sold | 411,351 | 419,291 | 1.9% | 88,727 | 90,493 | 2.0% | 81,774 | 139,475 | 70.6% | 114,188 | 134,391 | 17.7% |
| Overnights | 732,188 | 768,206 | 4.9% | 183,351 | 187,240 | 2.1% | 147,898 | 254,941 | 72.4% | 206,597 | 224,423 | 8.6% |
| ADR9 | 327 | 357 | 9.2% | 419 | 434 | 3.6% | 250 | 282 | 12.8% | 701 | 703 | 0.3% |
| Board revenues (in HRK) | 134,620,992 | 149,889,202 | 11.3% | 37,198,968 | 39,316,979 | 5.7% | 20,467,612 | 39,350,116 | 92.3% | 80,008,960 | 94,498,750 | 18.1% |
13 According to the classification under the USALI international standard for reporting in hotel industry (Uniform System of Accounts for the Lodging Industry).
Business operations of Baška properties are included for the period January – June 2016, but not in the comparable period of 2015.
Destination Pula - Puntižela business is included in destination Poreč. A detailed comparison of the new portfolio segmentation is on page 14.
All segments and destinations have recorded higher board revenues, the only exception being the Economy hotels and resorts segment. The most significant impact on the increase in total board revenues is exercised by the Premium and Midscale hotels and resorts segments. Such excellent results come from the optimised sales mix, an excellent response to marketing activities, and the successful realisation of a number of events in Dubrovnik and Poreč. This has, inter alia, allowed for facilities to stay open longer and to have high booking levels. Please note that the growth is partially driven by this year's business operations of the hotels and resorts in the Baška destination. Excluding their business operations this year, total board revenues generated by hotels and resorts record a 14% growth, whilst campsites record a 3% growth.
The Premium hotels and resorts segment records the highest growth in board revenues. A 39.2% growth to a HRK 74.9 million level is mainly a result of a 26,564 increase in the number of accommodation units sold to the amount of 87,439 units. Organisation of the M.I.C.E. event Global Training Experience by Daimler AG – Mercedes-Benz in Valamar Lacroma 4* and Valamar Dubrovnik President 5* hotels in the period from February to mid-April resulted in these hotels staying open for a longer period of time and having high occupancy levels. The later growth of the Dubrovnik Premium segment was primarily driven by the Valamar Dubrovnik President 5* hotel, mainly as a result of exceptionally good positioning in the individuals channel in May and June. Exceptionally high board revenues growth rates of the Valamar Isabella Island Resort 4*/5* resulted from more days of openness, from pre-season M.I.C.E. events, and from the high growth of the individual channel.
A 5.3% growth in the Upscale hotels and resorts segment is a result of an increase in the average daily rate and the number of accommodation units sold by 2.3% respectively 2.9%. HRK 60.9 million generated board revenues primarily arise from the sales mix optimisation. Namely, high-quality firstminute allotment distribution, strengthening of the individuals channel, and the increase of the group segment have had a positive impact on the high growth of the Valamar Club Tamaris 4*. Hotel & Casa Valamar Sanfior 4* has achieved a high growth primarily through the individuals segment, while the strong growth of the Valamar Zagreb Hotel 4* is a result of replacing the allotment channel with the individuals one in combination with high-quality group placements.
The Midscale hotels and resorts segment, which has recorded a HRK 20.8 million increase in board revenues, has made a major contribution to the increase of total board revenues. HRK 94,2 million of board revenues are partially driven by this year's business operations of the hotels and resorts in destination Baška. Excluding their business operations, Midscale segment's board revenues are up by more than 10%. Hotel Valamar Diamant 4* hotel is one of the major growth drivers as it had more days of openness coupled eith high occupancy levels and as a result of its M.I.C.E. events and its later better production of the group channel. High growth rates have been achieved by the Valamar Club Dubrovnik 3* hotel, mainly as a result of the successful groups acquisition. Valamar Crystal 4* and Valamar Rubin 3* hotels recorded a growth in all sales channels.
In the first half of 2016 the business operations of the Economy hotels and resorts segment are marked by a HRK 0.8 million decrease in relation to the comparable period last year, reaching a level of HRK 31.9 million. The decrease is mainly a result of an unfavourable holiday spread, leading to a smaller number of operating days. The business operations of the Economy segment stabilised in May and June.
Camping resorts have achieved a growth in board revenues across all segments. Total board revenues are up HRK 6.6 million to a HRK 61.3 million level. The Premium camping resorts segment encompasses one campsite, namely campsite Krk 5*, which has achieved a 13.8% growth in board revenues. The growth is a result of HRK 30 higher average daily rate arising from this year's investment to increase the quality and service provided to campsite guests. An 11.2% increase of the daily average rate has resulted in HRK 3.1 million higher board revenues in the Upscale camping resorts segment. HRK 30.2 million generated board revenues are most strongly impacted by investments in the campsite Lanterna 4* and by this year business of the campsite Bunculuka 4* in the Baška destination. Board revenues in the Midscale camping resorts segment amount to HRK 17.3 million. The consolidation of the campsite Zablaće 3* in the first half of 2016 is a result of a 16% growth in board revenues. Namely, early Easter holidays are not beneficial to campsite business operations, leading to a smaller number of operating days and consequently to lower board revenues. The same situation applies to the Economy segment, whose growth is impacted by the new campsite Tunarica 2*.
Over the last years, Valamar Riviera has consolidated its portfolio with a view to clearly differentiating, developing, and repositioning its tourism products. A precise market segments definition, innovative service concepts development, brand management, profitability increase, and return on investment optimisation required a refreshment of the tourism portfolio segmentation for the purpose of excellence in its management.
| Hotels and Resorts Overview | Categorization | Segment | ||||
|---|---|---|---|---|---|---|
| 2015 | 2016 | 2015 | 2016 | |||
| Valamar Dubrovnik President Hotel | * | * | Premium | Premium | Dubrovnik | |
| Valamar Isabella Island Resort | ****+ | * (4&5) | Premium | Premium | Poreč | |
| Valamar Lacroma Dubrovnik Hotel | ****+ | ****+ | Premium | Premium | Dubrovnik | |
| Valamar Club Tamaris | **** | **** | Upscale | Upscale | Poreč | |
| Valamar Riviera Hotel & Residence | **** | **** | Upscale | Upscale | Poreč | |
| Valamar Zagreb Hotel | **** | **** | Upscale | Upscale | Poreč | |
| Hotel & Casa Valamar Sanifor | **** | **** | Upscale | Upscale | Rabac | |
| Valamar Argosy Hotel | **** | **** | Upscale | Upscale | Dubrovnik | |
| Valamar Diamant Hotel & Residence | **** | **** | Midscale | Midscale | Poreč | |
| Valamar Crystal Hotel | **** | **** | Midscale | Midscale | Poreč | |
| Valamar Pinia Hotel & Residence | *** | *** | Midscale | Midscale | Poreč | |
| Valamar Rubin Hotel | *** | *** | Midscale | Midscale | Poreč | |
| Valamar Bellevue Hotel & Residence Albona | **** | **** | Midscale | Midscale | Rabac | |
| Allegro Hotel | *** | *** | Midscale | Midscale | Rabac | |
| Miramar Hotel | *** | *** | Midscale | Midscale | Rabac | |
| Hotel Corinthia | / | *** | / | Midscale | Island of Krk | |
| Zvonimir Hotel, Atrium & Villa Adria | / | * (4&5) | / | Midscale | Island of Krk | |
| Valamar Koralj Romantic Hotel | *** | *** | Midscale | Midscale | Island of Krk | |
| Valamar Club Dubrovnik | *** | *** | Midscale | Midscale | Dubrovnik | |
| Naturist Resort Solaris | *** | *** | Economy | Economy | Poreč | |
| Pical Hotel | *** | *** | Economy | Economy | Poreč | |
| Tirena Hotel | *** | *** | Economy | Economy | Dubrovnik | |
| Girandella Tourist Village | ** | ** | Economy | Economy | Rabac | |
| Lanterna Apartments | ** | ** | Economy | Economy | Poreč | |
| Marina Hotel & Mediteran Residence | ** | ** | Economy | Economy | Rabac |
| Camping Resorts Overview | Categorization | Segment | |||||
|---|---|---|---|---|---|---|---|
| 2015 | 2016 | 2015 | 2016 | ||||
| Camping Krk | * | * | Premium | Premium | Island of Krk | ||
| Camping Ježevac | **** | **** | Upscale | Upscale | Island of Krk | ||
| Camping Lanterna | **** | **** | Upscale | Upscale | Poreč | ||
| Camping Marina | **** | **** | Upscale | Upscale | Rabac | ||
| Naturist Camping Bunculuka | / | **** | / | Upscale | Island of Krk | ||
| Camping Orsera | *** | *** | Midscale | Midscale | Poreč | ||
| Naturist Resort Solaris | *** | *** | Midscale | Midscale | Poreč | ||
| Camping Zablaće | / | *** | / | Midscale | Island of Krk | ||
| Camping Škrila | *** | *** | Midscale | Midscale | Island of Krk | ||
| Camping Solitudo | *** | *** | Midscale | Midscale | Dubrovnik | ||
| Naturist Camping Istra | ** | ** | Economy | Economy | Poreč | ||
| Camping Brioni | ** | ** | Economy | Economy | Pula - Puntižela | ||
| Camping Tunarica | / | ** | / | Economy | Rabac |
We are emphasising that the data provided in the current quarterly financial statements are not fully comparable to the data from the previous year on grounds of the described merger processes. The items in the previous period until the merger date, i.e. 27 February 2015, do not include the data for the merged company Valamar hoteli i ljetovališta d.o.o., while the items until 31 March 2016 do not include the data for the merged company Hoteli Baška d.d. All significant changes in the financial statements of the Company should be observed as a result of the transactions concerned in the previous period.
In the period from 1 January 2016 to 30 June 2016, total revenues have increased by HRK 105.0 million to HRK 498.3 million. Sales revenues amount to HRK 416.5 million, accounting for 84% of total revenues (86% in 2015). They are HRK 76.5 million above the same period last year. National sales revenues amount to HRK 43.6 million, accounting for 8.7% of total revenues (9.5% in 2015), and are 17.0% above the previous comparable period. Sales revenues generated on international markets amount to HRK 373.0 million, accounting for 74.9% of total revenues (77.0% in 2015). They are 23.2% above the previous comparable period. Other operating and financial income accounts for 16% of total revenues (14% in 2015). Other business income, amounting to HRK 12.4 million, accounts for 2% of total revenues (3% in 2015) and is 1.0% below.
Accounting for 34% of total operating expenses (37% in 2015), material costs have decreased by HRK 2.1 million to HRK 159.9 million. Staff costs amount to HRK 141.2 million, accounting for 30% of operating expenses (28% in 2015). They are HRK 19.5 million above the same period last year. The increase of staff costs is mainly driven by an increase in the operating volume, the takeover of employees from the merged companies, and, to a lesser degree, an increase in employees' salaries.
Financial income amounts to HRK 69.3 million, indicating a HRK 28.7 million increase compared to the same period last year. The biggest growth item is other financial income with a HRK 35.7 million increase, coming mainly from the sale of the Group's share portfolio to the amount of HRK 34.8 million. Interest income, foreign exchange differences, dividends, and similar income from operations with third parties are up HRK 14.5 million. As a result of the kuna strengthening by almost 2% in relation to euro in the first half of 2016, foreign exchange gains from settling unrealised balance sheet items and repaying credits have recorded the highest growth to the amount of HRK 13.3 million. This has led to a decrease in liabilities denominated in euro and disclosed in kuna in the balance sheet. Despite an increase in the amount of free cash funds in the first half of 2016 in relation to the comparable period last year, a further decrease in market interest rates has impacted the retention of interest income generated from time deposits, a vista accounts, and placements, which was almost flat to the last year's level (a HRK 0.2 million growth). In 2016, dividend revenues from the related company Valamar hoteli i ljetovališta d.o.o. (merged to Valamar Riviera d.d. on 27 February 2015) to the amount of HRK 24.0 million have not been paid out. Unrealised expenses (losses) from financial assets are up HRK 2.5 million, coming from the valuation of EUR/HRK forward transactions contracted for 2016 with a view to protecting against foreign exchange risks.
Financial expenses amount to HRK 25.9 million and are HRK 13.9 million below the same period last year. Interest expenses and foreign exchange differences record a HRK 17.5 million decrease. The valuation of contracted IRSs and forwards in the first half has resulted in an additional liability, i.e. in HRK 3.3 million financial expenses. Other financial expenses are up HRK 0.3 million. The most significant change in relation to the comparable period last year are foreign exchange losses from settling unrealised balance sheet items, recording a
HRK 22.5 million decrease as a result of the mentioned kuna strengthening in relation to euro in the first half of this year. A HRK 5.1 million increase in interest expenses in the first two quarters of this year is a result of an increase in credit debt driven by the withdrawal of funds from granted credit lines for financing the 2015/16 investment cycle and the merger of the Hoteli Baška d.d. in the second quarter of this year and the carryover of their debt.
A good response to marketing and sales activities, sales channels optimisation, and the successful realisation of M.I.C.E. events have resulted in increased operational efficiency of business activities. In the period under consideration, loss before tax has decreased by HRK 87.8 million to HRK 1.6 million profit. Operating loss has decreased by HRK 45.2 million to HRK 41.8 million. The Company's gross margin is 0.4% (-24.4% in 2015).
As at 30 June 2016, the Company's total assets amount to HRK 3,898 million, which is HRK 342.3 million above the previous period.
In 2016, investments worth more than HRK 260 million14 were focused on further increasing the quality of Valamar Riviera's portfolio of hotels, apartments, and campsites. More than 50% of total 2016 investments was earmarked for developing accommodation, services, and contents in campsites operating under the Camping Adriatic by Valamar brand.
With an almost HRK 34 million worth investment cycle, the Krk campsite has become the first five-star campsite in the Republic of Croatia. It is a unique, eco-friendly family camping resort and one of the three Croatian member campsites of the prestigious "Leading Campings of Europe" association. Its distinguishing features are a swimming pool with heated water, a wellness oasis, a promenade with entertaining contents, a children's swimming pool, a children's water playground, and completely refurbished toilet facilities. Its rich offer also includes Maro Mini and Midi clubs for younger children, as well as Teens Club and Hobby Club for older children. The campsite also offers new accommodation capacities under the name Bella Vista Premium Village, comprising 63 designed mobile homes with a view of the sea. Special attention was paid to energy efficiency and sustainable development. The campsite has a unique system for waste water purification and landscape irrigation by utilising purified waste water. More than 300 trees have been planted. The beach is marked by the Blue Flag.
A HRK 87 million investment has raised the Lanterna campsite category from 3 to 4 stars. Lanterna campsite is the leading Istrian campsite, also a member of the "Leading Campings of Europe" association. We have completed the Istrian Village project which got new accommodation capacities. The accommodation offer was improved with innovative accommodation units for those who love luxurious camping, i.e. Glamping, as well with two completely new thematic accommodation zones with 119 new mobile homes in total. A number of plots was renovated, while the campsite's landscape was given a new appearance and the campsite has a refurbished reception area, a new sand beach
Camping Lanterna 4*, Poreč Adria with a beach bar, new Cafe Belvedere, and other contents. The guests of this campsite are able to enjoy a new aqua park with a 1,350 m 2 surface area, four swimming pools, a multitude of slides, and other attractions for children. The main swimming pool located near the beach was renovated as well, and two toilet facilities were refurbished.
Investments were also made with a view to increasing the quality of other campsites on the island of Krk, in Istria, and in Dubrovnik by improving accommodation, beach offer, and hospitality contents. The camping segment has a potential to develop into innovative camping resorts, i.e. resorts offering higher value-added accommodations and services aiming at high-end customers. Such projects are still difficult to develop as the issue of tourism land has not been resolved yet, and thus Valamar Riviera is still restricted to partial investments in campsite premises and contents. The resolving of tourism land concessions would release a potential for stronger repositioning of campsites both in the Valamar Riviera's portfolio and the entire Croatia. This would place campsites at a high competitiveness level compared to the best camping resorts in Europe.
A HRK 12 million investment has further upgraded the last year's successful project Valamar Isabella Island Resort as the quality of a part of products and services was raised to a five-star level (Miramare annex, Castle, and 7 villas).
This year, Valamar Riviera has also enriched its hospitality offer and completely renovated restaurants ex. Slavija (new contents: restaurant "La Pentola II", alehouse "Kraft", and the beach club "The Beat"), Delfin, and Orsera. A range of other projects, which are considerably increasing the quality of offer and experience at all destinations by generating new contents and improving the existing ones, were also performed. Among a number of projects, the Valamar Diamant 4* hotel's sports hall was adopted into a multifunctional hall for sports and other events. We continued further investments in beaches, personal accommodation improvements, IT and business digitalisation projects, technological processes and energy savings in laundry rooms, and other energy efficiency related projects.
18
With its planned 2017 investments worth more than HRK 750 million, Valamar Riviera continues with its biggest investment cycle in the tourism portfolio so far. More than 50% of total investments is earmarked for raising the quality of tourism products and services at the Rabac destination. Accordingly, next year Rabac guests will be welcomed to a completely new 4-star Family Life Bellevue Resort, i.e. the first TUI Family Life hotel in Croatia, and a fully renovated 4-star Valamar Girandella Resort. These investments will increase the number of high-quality accommodation units and create a range of new water, family, hospitality, and sports contents.
In addition to solid facilities, almost a quarter of total investments will be performed in campsites as part of the campsite investment cycle. With a view to improving the quality and experience of the Lanterna campsite, its reception with commercial and hospitality facilities will be renovated, whilst the campsite's offer will be enriched with new, high-quality mobile homes and new contents for children. The Krk campsite's guests will be welcomed to a fully renovated toilet facility with accompanying contents and a SPA zone. The Ježevac campsite on the island of Krk is expected to have a new zone for mobile homes. Thus, investments will focus on new, high-quality accommodation units and on the improvement of promenades, beaches, and hospitality facilities. At the Baška destination, guests will be welcomed to a fully renovated Zablaće campsite. The quality of accommodation will be improved by offering new mobile homes, renovating camping plots, and developing a reception desk with accompanying contents, 3 toilet facilities with accompanying contents, hospitality facilities, and contents for children. Investments are also being made with a view to increasing the quality of other campsites
on the island of Krk, in Istria, and in Dubrovnik by improving Valamar Girandella Resort (preliminary visualization), Rabac accommodation, beach offer, and hospitality contents.
Moreover, a range of other projects is in the pipeline aiming to create new contents and improve the existing ones and thus considerably increase the quality of offer and experience at all destinations (beaches, IT and business digitalisation projects, technological processes and other energy efficiency related projects). The Borik beach in Poreč will be completely renovated and enriched with a range of water, sports, hospitality, and entertainment contents for guests of all age groups.
As a continuously evolving company and in accordance with its strategic goals, Valamar Riviera will perform investments to improve other segments of its business operations in addition to accommodation capacities and service facilities. Valamar Riviera will invest considerable funds to increase the quality and the number of staff accommodation units for internal employees. In order to meet the needs for additional workspace, the expansion of the administration building in Poreč and the administration building in Dubrovnik is also planned.
As indicated in our strategic goals, by continuously raising the quality of portfolio facilities, services, and contents, we are creating the basis for generating added value both for our guests and for all Valamar Riviera's stakeholders. However, a VAT rate at the level of those applied in the Mediterranean countries and the resolution of the tourism land issue would contribute to an additional acceleration of investments, as well as to the growth and development of the entire tourism sector. Unfortunately, the tourism is still not sufficiently recognised as an opportunity for the Croatian economy. Apart from the existing financing programmes provided by the Croatian Bank for Reconstruction and Development, there are no other measures that would significantly accelerate growth and development and thus provide for a level playing field for the Croatian tourism and the tourism in other Mediterranean countries.
Valamar Riviera actively formulates and manages the risk management policy in all aspects of operations, seeing risk as any potential event which may have a negative impact on the achievement of objectives and the strategy defined by Valamar Riviera.
The risks management process consists of the following steps:
The different types of risks encountered by Valamar Riviera in its operations may be classified into the following groups of risk:
procedures; the human factor – employees, IT system;
Bearing in mind the fact that almost 95% of the Company and Group's guests are foreign guests who carefully choose their vacation destination in the competitive Mediterranean environment, the stability of a country's macro-economic indicators is very important, with special emphasis being given to the exchange rate and prices of goods and services with a direct impact on guests' purchasing power. Although smaller in share, the number of arrivals of domestic guests to the Company and Group's facilities is important as well, and also impacted by a number of other national macro-economic indicators, such as employment/unemployment, domestic gross product increase/ decrease, industrial product increase/decrease, as well as other indicators having a direct impact on the purchasing power of the Croatian citizens and, consequently, on their decision at which of the Adriatic destinations to spend their summer vacation.
The risk related to the change of tax and other regulations is another significant risk for the Company and the Group and one of the more demanding segments of risk management with only limited possibilities for the Company and the Group. During previous years, frequent changes of tax regulations had a negative impact on the profitability of the Company and the Group, the most significant being:
Such frequent changes of regulations related to tax levies imposed on the economy, which often take place after the Company and the Group have already adopted their business policy and the budget for the following year and agreed on commercial terms and conditions with their business partners, materially distort the financial position of the Company and the Group and jeopardise further investment plans, and thus the trust of investors.
The Company and the Group are also exposed to the risks of potential change of regulations concerning concessions and concession approvals, i.e. concession fees for the use of maritime domain, but also concession fees for the use of touristic land, the area which has not been regulated until the present day. Namely, in view of the core business of the Company and the Group, the right of use of maritime domain and touristic land is one of the significant conditions of further business operations, particularly in campsites.
In their day-to-day operations and activities undertaken, the Company and the Group are exposed to a number of financial risks, in particular to the following ones:
2) Interest rate risk;
3) Price risk;
The Company and the Group hedge interest rate and foreign exchange risks by applying instruments available in the market in order to mitigate these risks. Internal risk management objectives and policies refer to the protection of foreign exchange inflows during seasonal activity and to the partial interest hedge of loan principal.
The Company and the Group operate internationally and are exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the euro and in a extremely minor part in Swiss franc. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities. The majority of international sale revenues are denominated in euro, with long-term debt being denominated in euro and in a extremely minor part Swiss franc. Accordingly, movements in exchange rate between the euro and Croatian kuna may have an impact on the results of future operations and future cash flow. The Company and the Group make use of derivative instruments in accordance with operating estimates and expected market developments. Given that the inflow is to a large extent denominated in euro, as well as the majority of credit liabilities, the Company and the Group are to the largest extent naturally hedged.
Bank debentures committed at variable rates expose the Company and the Group to cash flow interest rate risk. The Company and the Group periodically use derivative instruments to actively hedge cash flow and fair value interest rate risk exposure by applying interest rate swap from a variable rate to a fixed one. The economic effect of such interest rate swap is the conversion of credits at a variable rate into credits at a fixed rate for pre-committed part of the loan principal protected in this way. The Company and the Group have interest-bearing assets (cash assets and deposits), resulting in the Company and
Group's income and operating cash flows being influenced by changes in market interest rates. This becomes particularly evident during the season when the Company and the Group have significant excess funds at their disposal.
Credit risk arises from cash, time deposits and trade receivables, where the Company and the Group have no significant concentration of credit risk. Following the sales policies of the Company and the Group, they commit to collaboration with customers with an appropriate credit history, i.e. their commitment is made conditional upon advance payments, payment of bank securities or by major credit cards (individual customers). With a view to reducing their credit risk, the Company and the Group continuously monitor their exposure to parties they operate with and their credit standing, obtain security instruments (bills of exchange, promissory notes) and thus lowering bad debt risk with regard to services provided.
The Company and the Group are holders of equity and debt securities and are exposed to price risk of listed equity securities. The Company and the Group do not actively participate in the capital market in terms of investments in equity and debt securities, so that the price risk of equity securities in their possession is not significant.
Prudent liquidity risk management exercised by the Company and the Group implies maintaining at all times sufficient cash to settle all their liabilities by developing cash flow projections at a monthly, annual and long-term basis. On top of currently available cash, the Company and the Group aim to maintain flexibility in funding by keeping committed credit lines available. Excess funds above the amount required for working capital management are invested in interest-bearing deposits, time deposits, money market deposits and marketable securities, thereby choosing instruments with appropriate maturities or sufficient liquidity in accordance with the projected needs for liquid funds.
As an asset class with the highest risk, the market value of shares can be exceptionally volatile, as it is affected by the volatility of the whole capital market, macro-economic movements on the markets in which the Company and the Group operate, discrepancies with regard to financial analysts' expectations in relation to the performance, changes in dividend policy, activities concerning mergers, acquisitions and entering into strategic partnerships, instability of the Company and Group's business model, as well as fluctuations in the financial results of the Company and Group's business operations. If the given factors have a negative connotation, there is a significant risk of share market value drop. Furthermore, there is a significant risk of investors not being able to sell their shares at any time at a fair market value.
On a daily basis, the Company and the Group face business risks potentially leading the weakening of competitive strength, and thus jeopardising their further stability. In the previous period, the Company and the Group made business decisions contributing to the increase of their competitive strength on the demanding Mediterranean market and thus improved the performance and the efficiency of their business operations, which gave rise to the expectation of continued positive trends in the future as well, subject to prudent long-term strategic management.
In the Republic of Croatia, tourism has been one of few growing branches of the economy during the last several years marked by the global financial crisis and economic downturn, which have had a significant impact on the Croatian economy as well. Upon joining the European Union, the Republic of Croatia's market has become a part of the large European market, while the membership of the Republic of Croatia in NATO has reduced safety risks. The Tourism Development Strategy of the Republic of Croatia until 2020 (Official Gazette No. 55/13) provides answers to the question what kind of tourism the Republic of Croatia wants and needs to develop by using its comparative advantages as well as knowledge and skills with a view to strengthening the competitive capacity of the Croatian tourism. It is important that the achieved growth rates of the Croatian tourism are maintained over the following years, an objective to be accomplished only through further strategic considerations in developing tourism products and by investing in the creation of additional values, which will differentiate Croatian tourism from its competitive environment by pointing out its uniqueness, attractiveness and quality.
Despite the improved security and political circumstance, which gave rise to the launching of investment cycles in tourism, the Croatian tourism, as one of the strategic branches of the Croatian economy, is still faced with a number of challenges and risks, such as:
The performance of the Company and Group's business operations can also be affected by environmental risks, primarily with regard to customer satisfaction with the whole experience of staying in Valamar's facilities, reflecting as a result in a reduced number of arrivals. Such risks include, for example, sea water pollution (e.g. as a result of tanker breakage or discharge of chemicals into the sea), but also less intense deterioration of sea quality and shoreline pollution arising from insufficient quality of waste water management and sewage along the Croatian coast of the Adriatic Sea. Likewise, climate changes, such as long drought periods or, on the other hand, long rain periods, can also have a direct impact on how long guests stay in hotels and campsites of the Group and the Company, or can also lead to increased operating costs. This also includes various other natural disasters and adverse climatic events (such as earthquakes, fires, floods), air pollution caused by toxic gas emissions from e.g. industrial plants, etc.
The company Valamar Riviera d.d., as well as the Group, has been continuously developing and acting in compliance with the good corporate governance practice. Through its business strategy, policy, key acts, and business practice, it strives to contribute to transparent and efficient business operations and high-quality links with the environment in which it runs its operations. In 2008, the Company adopted its Code of Corporate Governance with a view to further strengthening and establishing high corporate governance standards. The Management Board fully complies with the provisions of the adopted Code. Since its shares were listed in the Official Market of Zagrebačka burza d.d., the Company has been applying the Code of Corporate Governance of Zagrebačka burza d.d. (in detail in the annual questionnaire published in compliance with the regulations).
The major direct shareholders in accordance with the data from the Central Depository and Clearing Company are listed in the table under the section "Share".
General risk management characteristics are described in the section "The risks of the Company and the Group."
There is a time limit related to the use of voting rights at the General Assembly pursuant to the provisions of the Companies Act – shareholders are required to register their participation within the period stipulated by law. There is no case in which the financial right stemming from securities would be separate from holding the securities. In the Company, there are no securities with special rights of control nor are there any voting right limitations.
The rules on the appointment and recall of members of the Management Board and members of the Supervisory Board are established by the Articles of Association, in accordance with the provisions of the Companies Act.
The Company can acquire treasury shares pursuant to the decision of the General Assembly of 17 November 2014. The rules on amending the Company's Articles of Association have been established by the Companies Act and there are no additional limitations.
The authorisations of the Management Board members are also fully in accordance with the provisions of the Companies Act.
The Management Board: Mr. Željko Kukurin, President of the Management Board, and Mr. Marko Čižmek, Member of the Management Board.
The Supervisory Board: Mr. Gustav Wurmböck, President, Mr. Mladen Markoč, Deputy-president, Mr. Franz Lanschützer, Deputy-president, and members: Mr. Georg Eltz, Mr. Hans Dominik Turnovszky, Mr. Vicko Ferić, and Ms. Mariza Jugovac. For a more efficient performance of its functions and duties as prescribed by the provisions of the Audit Act the Supervisory Board named:
The Presidium of the Supervisory Board: Mr. Gustav Wurmböck, President, Mr. Mladen Markoč, and Mr. Franz Lanschützer, Deputy-president.
The Audit Committee: Mr. Georg Eltz, President, and members: Mr. Franz Lanschützer, Mr. Mladen Markoč, Mr. Vicko Ferić, and Mr. Dubravko Kušeta.
The Investment Committee: Mr. Franz Lanschützer, President, and members: Mr. Georg Eltz, Mr. Vicko Ferić, Mr. Hans Dominik Turnovszky, and Mr. Gustav Wurmböck.
The Management and the Supervisory Boards primarily act through meetings and by making correspondent decisions, in accordance with effective regulations and Company's bylaws.
The transactions with related parties within the Group are effected at regular commercial terms and conditions and at market prices.
In the period under consideration, revenues resulting from related-party transactions amounted to HRK 421 thousand (in 2015: HRK 24.7 million) for the Company, and HRK 8 thousand (in 2015: HRK 10 thousand) for the Group, while expenses amounted to HRK 15.1 million (in 2015: HRK 18.6 million) for the Company, and HRK 443 thousand (in 2015: HRK 164 thousand) for the Group.
Balances of related-party receivables and liabilities as at 30 June 2016 amounted to: HRK 151.6 million15 receivables for the Company (at the end of 2015: HRK 165.0 million15, and HRK 276 for the Group (at the end of 2015: HRK 2 thousand); HRK 225 thousand liabilities for the Company (at the end of 2015: HRK 306 thousand), and HRK 99 thousand for the Group (at the end of 2015: HRK 405 thousand).
Please note that pursuant to the Hotel Management Contract, from 2004 to 27 February 2015, the Company entrusted the management of its hospitality properties to the leading hospitality management company in Croatia, Valamar hoteli i ljetovališta d.o.o. The services concerned included the management of hotels and other tourism facilities and services, the laundry and other centralised tourism functions, such as procurement, technical maintenance, marketing, sales, human resources, IT, etc. The merger of Valamar hoteli i ljetovališta d.o.o. to the Company (described under Significant Business Events) will contribute to a further increase in operational efficiency.
On 2 September 2011, the establishment of branch offices was entered in the court register as follows: Branch Office for Tourism RABAC, with registered office in Rabac, Slobode 80, and Branch Office for Tourism ZLATNI OTOK, with registered office in Krk, Vršanska 8. On 4 October 2013, the establishment of the Branch Office for Tourism DUBROVNIK-BABIN KUK, with registered office in Dubrovnik, Dr. Ante Starčevića 45, was registered, and on 1 October 2014, the Branch Office for Business and Management Consulting ZAGREB, with registered office in Zagreb, Miramarska cesta 24.
The Branch Offices Rabac, Zlatni otok and Dubrovnik-Babin kuk, as economic drivers of their local communities, continue to operate at their destinations supporting their development by further investments, tourism development and participation in social and business activities.
15 For the most part refers to the re-invoiced amount arising from the investment made in the reconstruction and upgrading of the hotel Valamar Lacroma owned by subsidiary Elafiti Babin-kuk d.o.o.
In 2016, the Company acquired 1,440,942 treasury shares on the regulated market, at the total acquisition cost of HRK 35,692,643. The acquisition concerned makes 1.14% of the registered capital. On 30 June 2016, the Company held in total 1,454,078 treasury shares, or 1.15% of the registered capital.
In the period from 1 January 2016 to 30 June 2016, the highest recorded share price in regular trading on the regulated market was HRK 24.97, while the lowest was HRK 22.30. The Company's share price increased by 4.0%, exceeding both CROBEX and CROBEX 10 indices development, which recorded a modest growth of 0.1%, respectively 0.5%. With the regular trading turnover of HRK 663 thousand a day16, the Valamar Riviera's share is among the 3 most frequently traded shares on the Zagreb Stock Exchange.
Apart from the Zagreb Stock Exchange indices, the share makes a component part of the Vienna Stock Exchange indices (CROX17 and SETX18), and SEE Link indices (SEELinX and SEELinX EWI)19. Zagrebačka banka d.d. and Interkapital vrijednosni papiri d.o.o. perform specialist tasks of ordinary shares of the Company listed in the Official Market of Zagrebačka burza d.d. They provide support to Valamar Riviera's share turnover, which in the period under consideration was 32.2% on average20.
The Company actively holds meetings and conference calls with domestic and foreign investors, thus providing support to high-level transparency, creation of additional liquidity, increase of share value, and involvement of potential investors. In pursuing such an approach, Valamar Riviera can contribute to further growth of the Company's value for the benefit of all stakeholders, with a view to making the Valamar Riviera's share recognisable as the leading Croatian tourism share.
16 Block transactions are excluded from the calculation.
Performance of Valamar Riviera's share and CROBEX and CROBEX 10 indices
Analytical coverage of Valamar Riviera is provided by:
1) Alta invest d.d., Ljubljana;
2) ERSTE bank d.d., Zagreb;
3) Hypo Alpe-Adria-Bank d.d., Zagreb;
4) Interkapital vrijednosni papiri d.o.o., Zagreb;
5) Raiffeisenbank Austria d.d., Zagreb;
6) UniCredit Group - Zagrebačka banka d.d., Zagreb.
consisting of blue chip stocks traded on stock exchanges in the region of South-eastern Europe (shares listed in Bucharest, Ljubljana, Sofia,
Belgrade and Zagreb). 19 SEE Link is a regional platform for securities trading. It was founded by Bulgarian, Macedonian, and Zagreb Stock Exchange. SEE LinX and SEE LinX EWI are two "blue chip" regional indices composed of ten most liquid regional companies listed on three Stock Exchanges: five from Croatia, three from Bulgaria, and two from Macedonia.
20 Block transactions are excluded from the calculation. Data refers to the period 1/1 - 30/6/2016.
As the leading Croatian tourism share and a company with more than 21 thousand shareholders, on 9 June 2016, Valamar Riviera organised its first Investors Day, making a step forward towards not only its present and future investors, but also the wider public. On that occasion, a new 2020 development strategy and goals were presented, as well as the first 2015 Integrated Annual Report published on the Zagreb Stock Exchange and available on the corporate web-site (more details in chapter "Integrated report 2015" on page 30).
The first Valamar Riviera's Investors Day was met with great interest by media and investors, including 30 funds, banks, analytics, broker, and insurance companies, as well as a number of private investors. Sustainable and socially responsible development of destinations combined with investments of up to 2.5% of revenues in corporate social responsibility, education, and tourism destination development projects make an integral part of the Valamar Riviera's business operations.
More than six decades long tradition of involvement in the local community and its focus on a comprehensive social prosperity is reflected in Valamar Riviera's eight umbrella corporate social responsibility programmes, being also of particular importance in the planning of all key investment projects. This is particular evident in energy efficiency and environmental protection projects. Thus, as of the beginning of 2016, through the HEP's ZelEn (Green Energy) Project, Valamar Riviera has been purchasing electricity generated
exclusively from renewable sources, resulting in a 60% annual reduction in greenhouse gas emissions. Currently, Valamar Riviera has 43 electrical vehicles. Within the energy efficiency programme, at the beginning of June this year, an e-charging station was ceremonially opened in front of the Valamar Diamant hotel in Poreč. By the end of the next year, Valamar Riviera plans to have a total of 7 e-charging stations, which is the current trend at a global level, recognised and welcomed by an increasing number of ecologically aware guests and local communities.
Valamar Riviera has been continuously working on the education of its employees and the local community with a view to raising environmental awareness and supporting various projects related to the protection of the Adriatic Sea and seaward side. For the third year in a row, this spring saw to the successful implementation of the "We love the Adriatic Sea" project, focused on beach and sea bed cleaning and education on the importance of sea and Adriatic seaward side preservation. The competition took place in Poreč, Rabac, Baška, Krk, and Dubrovnik, while money donations awarded by the project were granted to Dubrovnik Diving Club, Adriatic Maritime Institute, Horizont-Poreč Sailing Club, Štinjan Sea Sport Fishing Club from Pula, "Rudar" Football Club from Labin, "Mladi Rudar" Handball Club, Bioteka Association promoting biology and related sciences, and Rabac Association for Underwater Activities, which organised a number of beach and sea bed cleaning actions in the pre-season.
For the third year in a row, Valamar Riviera also conducted the competition "A thousand days at the Adriatic Sea", awarding more than a thousand free overnight stays, including fullboard or half-board service, in one of its hotels, resorts, or campsites. Donations to associations, schools, and institutions are granted with a view to supporting projects for work with children without proper parental care, children from lowincome families, children with certain health difficulties who would benefit from staying at the seaside in terms of treatment or recovery, and children with special needs. In 2016, free overnight stays for children groups and their expert leaders were granted to the following competition participants:
With a view to developing tourism destinations at which it runs its business, Valamar Riviera supports a number of events as a sponsor, partner, host, or organiser. In the first six months of this year, a range of major and excellently organised events was held. This year's best example is the Poreč Open Air Festival, whose initiator, partner, and major sponsor is Valamar Riviera and which on 9 June has turned the City of Poreč into a big open-air stage. This festival of life will take place in Poreč until 10 September 2016, providing all Valamar's guests and the citizens of Poreč and nearby towns and villages with the opportunity to enjoy every day excellent music and urban rhythms, jugglers and acrobats' performances, street performances, cinema and theatre programmes, and a number of other special events. At the end of June, another great event, i.e. the Swatch Major Series Poreč tournament, a prestigious tournament for players and a true summer sports and entertainment spectacle sponsored by Valamar Riviera, took place in Poreč. This year's tournament was played at the central court in the Peškera Bay and at five additional courts in the vicinity of the Valamar Zagreb hotel and in Zelena Laguna.
Also worth mentioning is the fourth issue of the "Artist on Vacation" project in Valamar, transforming Poreč into a melting pot of the most prominent world avant-garde artists and their fans. The project, organised in collaboration with the Institute for the Research of the Avant-Garde and the Marinko Sudac Collection, takes place in Valamar's hotels, with a mission to present different legacies of a true avant-garde by inviting world renowned avant-garde artists as guests. Valamar Riviera has founded an Art Colony, which hosted more than 200 renowned artists over the last 33 years. Artists are accommodated in Valamar's facilities, while works of art created in the Art Colony and donated by the artists are displayed in Valamar Riviera's hotels, thus enriching their interior whilst presenting a part of modern artistic creation to Valamar's guests.
Valamar Riviera strongly supported and participated in the creation of positive and social value of the Dubrovnik Sentimento Festival, a unique international cultural, educational, and rehabilitation programme taking place in the Valamar Dubrovnik President hotel.
The ceremonial opening of the Valamar's first e-charging station in front of the Valamar Diamant hotel in May also announced the "Nikola Tesla EV Rally Croatia 2016". It is the biggest and the most important e-mobility event of the year in Croatia and the region that took place at the beginning of June.
Valamar Riviera has been continuously investing to increase the quality of its products, services, and contents, as recognised on a daily basis by the wider community, peers, institutions, and partners. Only in the first half of 2016, Valamar Riviera's hotels, resorts, and campsites have received prestigious awards and certificates. Valamar Riviera's facilities continuously receive high rates from guests and excellent reviews on the most prominent travel portals. Thus, all five Dubrovnik hotels have received the "2016 Certificate of Excellence" on the basis of guests' reviews on Hotels.com, while TripAdvisor has once again awarded the "2016 Travellers' Choice Award" to Valamar Riviera's facilities in several categories. Increased quality of Valamar Riviera's campsites has been recognised by the renowned camping associations ADAC and ANWB, which have awarded the "Best Camping 2016" and "Best Campsite" awards to campsites Krk and Lanterna.
| Awarding organisation | Award | Winner |
|---|---|---|
| ADAC ANWB Camping2be.com |
Best Camping 2016 Best Campsite Camping2be 2016 Award |
Camping Lanterna, camping Krk Camping Lanterna, camping Krk Camping Lanterna |
| Croatian Committee of the Foundation for Environmental Education |
Golden Plaque | Valamar Duborvnik President Beach |
| DCC Europa-Preis | Camping Award 2016 | Camping Krk |
| FEE (Foundation for Environmental Education) |
Blue Flag | Valamar Duborvnik President Beach, Cava Beach |
| Hotels.com | 2016 Certificate of Excellence | Valamar Lacroma Dubrovnik Hotel, Valamar Duborvnik President Hotel, Valamar Argosy Hotel, Tirena Hotel, Valamar Club Dubrovnik |
| IHAC | IHAC reward | Valamar Argosy Hotel, Tirena Hotel |
| Kongres magazine |
TOP 10 Premium Resorts Meeting Hotels | Valamar Lacroma Dubrovnik |
| TripAdvisor | 2016 Travellers' Choice Winner | Valamar Club Tamaris |
| TripAdvisor | 2016 Travellers' Choice Winner | Valamar Riviera Hotel |
| TripAdvisor | 2016 Travellers' Choice Winner | Valamar Isabella Hotel |
| TripAdvisor | 2016 Travellers' Choice Winner | Valamar Duborvnik President Hotel |
| TripAdvisor | 2016 Certificate of Excellence | Valamar Argosy Hotel |
On Valamar Riviera's Investors Day was presented the first 2015 Integrated Annual Report. The Report, using G4 GRI Guidelines, primarily aims at presenting a strategic and longterm insight into the Company's business operations to all key stakeholders, including Valamar Riviera's shareholders, employees, partners, guests, and wider community, with a particular focus on corporate social responsibility, it being the basis of the Company's sustainable business operations and further development.
Valamar Riviera's business model includes development and maintenance of our touristic assets, operating management of hotels, resorts and campsites, and providing other hospitality services in our destinations. This approach enables Valamar Riviera to manage the complete guest experience, and to serve as an important stakeholder in our destinations. Our experience in property development and technical maintenance optimizes investments and returns. Our portfolio asset management approach ultimately raises the quality of service provided and revenue achieved per guest.
To drive a paradigm shift in regional tourism development. To harness a symbiotic relationship between hospitality and destination management that develops local economies, builds sustainable futures and creates a more enriching guest experience.
To proudly express Valamar Riviera's culture through inspiring hospitality and destination experiences.
To form a seamless integration of local discovery and authentic hospitality that enriches lives.
To grow and deliver exceptional and sustainable value.
We make our guests feel very welcome and highly appreciated.
We set ourselves challenging targets and strive for excellence in everything we do.
We are responsible in our business partnerships, caring for our employees, supportive towards society and committed to the environment.
We engage in collaborative innovation to improve our performance, stay alerta nd always remain open to change
We take pride in our destinations and in being part of the Valamar family.
Grow significantly by retaining market leadership in the Croatian market with two digit EBITDA-CAGR over the next 5 years and through acquisitions or strategic partnership in selected destinations in the leisure hospitality sector in Europe
Invest HRK 1.5 - 2.0 billion in the portfolio over the coming period while maintaining a solid balance sheet and generate premium returns by steadily growing EBITDA margin to 35-38% with a sustainable net debt/EBITDA ratio.
Strengthen direct relationships with guests by achieving 50% of revenue from direct bookings and 30% of returning guests.
Broaden and optimize business through strategic partnerships with internationally recognized players in order to prolong the season and diversify the customer base.
Be recognized as the most desirable employer in tourism by paying above-average wages for Croatia, achieving 70% seasonal worker return rate and developing more than 80% of our management internally.
Steer sustainable and socially responsible development of destinations by investing at least 2.5% of revenues in corporate social responsibility, education, tourism and destination projects.
Create substantial value for shareholders by significantly increasing our market capitalization.
Offer attractive and sustainable dividends to our shareholders.
Provide superb quality to create positive moments and lasting memories for every guest each day and address him individually throughout the entire year.
Develop, empower and reward employees to become the heart of a guest-centric service organization and create long-term and trusting relationships with employees.
Focus on strong growth in both revenues and profits by utilizing internal capabilities, enhancing guest focus and development through strategic partnerships and M&A.
Be a leading innovator in leisure hospitality industry in europe and leverage opportunities provided by digitization to fully meet our guests' needs.
Play a leading role in the development of Croatian tourism, our destinations and corporate social responsibility.
Strategic goals are subject to a disclaimer mentioned in the Integrated Company Annual Report and Corporate Social Responsibility 2015 on page 110.
The report is available at the Zagreb Stock Exchange's and Valamar Riviera's website: www.valamar-riviera.com .
As one of the largest employers in Croatia (on 30 June 2016, the Company employed 3,806 workers, 1,037 of them permanent and 2,769 seasonal), the Company and the Group systematically and continuously invest in human resources development by applying top quality practices and an integral strategic approach to human resources management (transparent hiring process, clear objectives, employees' performance measurement and rewarding of performance, opportunities for employees' career development, investment in employees' development, and encouraging two-way communication through various channels).
In the course of the second quarter of 2016 and the first half of 2016, the Company's Management Board performed the actions provided for by law and the Articles of Association with respect to the management and representation of the Company, 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 second quarter of 2016 and the interim report of the Company's Management Board covering the period from 1 January 2016 to 30 June 2016 were adopted by the Management Board on 26 July 2016.
Company's 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.
Hotel & Casa Valamar Sanfior 4*, Rabac
Management Board of the Company
In Poreč, 26 July 2016
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 reports of company VALAMAR RIVIERA d.d. seated in Poreč, Stancija Kaligari 1, OIB 36201212847 (hereinafter: Company), hereby make the following
According to our best knowledge
Marko Čižmek Ljubica Grbac Management Board member Director of Department of Finance and Accounting
Quarterly financial report TFI-POD
| Tax number (MB): | 3474771 | |||
|---|---|---|---|---|
| Company registration number (MBS): |
040020883 | |||
| Personal identification number (OIB): |
36201212847 | |||
| Issuing company: | Valamar Riviera d.d. | |||
| Postal code and place | 52440 | Poreč | ||
| Street and house number: | Stancija Kaligari 1 | |||
| E-mail address: | [email protected] | |||
| Internet address: | www.valamar-riviera.com | |||
| Municipality/city code and name: | 348 | Poreč | ||
| Number of | ||||
| employees: | ||||
| County code and name: | 18 | Istarska | (period end) | 3.841 |
| NKD code: | 5510 | |||
| Consolidated report: | YES | |||
| Companies of the consolidation subject (according to IFRS): |
Seat: | MB: | ||
| Valamar hoteli i ljetovališta d.o.o. | Zagreb | 01537369 | ||
| Valamar hotels & resorts GmbH | Frankfurt | 04724750667 | ||
| Hoteli Baška d.d. | Baška | 03035140 | ||
| Mirta Bašćanska d.o.o. | Baška | 01841017 | ||
| Vala Bašćanska d.o.o. | Baška | 02086131 | ||
| Baškaturist d.o.o. | Baška | 03849236 | ||
| Puntižela d.o.o. | Pula | 03203379 | ||
| Citatis d.o.o. | Zagreb | 02626969 | ||
| Bastion upravljanje d.o.o. | Zagreb | 01877453 | ||
| Elafiti Babin kuk d.o.o. | Dubrovnik | 01273094 | ||
| Magične stijene d.o.o. | Dubrovnik | 02315211 | ||
| Palme turizam d.o.o. | Dubrovnik | 02006103 | ||
| Pogača Babin Kuk d.o.o. | Dubrovnik | 02236346 | ||
| Bugenvilia d.o.o. | Dubrovnik | 02006120 | ||
| Bookkeeping service: | ||||
| Contact person: | Sopta Anka | |||
| (only surname and name) | ||||
| Telephone: | 052/408 188 | Telefaks: | 052/408 110 | |
| E-mail address: | [email protected] | |||
| Family name and name: | Kukurin Željko, Čižmek Marko | |||
| (person authorized to represent the company) | ||||
Documents disclosed:
(Balance Sheet, Income Statement, Cash Flow Statement, Statement of Changes in Equity and notes to financial statements)
Management Interim Report
Declaration of the persons responsible for preparing the issuer's statements
L.S. (signature of the person authorized to represent the company)
| Position | AOP | Previous period | Current period |
|---|---|---|---|
| 1 | 2 | 3 | 4 |
| ASSETS | |||
| A) RECEIVABELS FOR SUBSCRIBED NOT PAID CAPITAL | 001 | ||
| B) NON-CURRENT ASSETS (003+010+020+029+033) | 002 | 3.190.008.042 | 3.192.105.027 |
| I. INTANGIBLE ASSETS (004 to 009) | 003 | 17.006.943 | 19.474.035 |
| 1. Expenditure for development | 004 | ||
| 2. Concessions, patents, licenses, trademarks, service marks, software and other rights | 005 | 10.327.568 | 9.147.935 |
| 3. Goodwill | 006 | 6.567.609 | 6.567.609 |
| 4. Advances for purchase of intangible assets | 007 | ||
| 5. Intangible assets in progress | 008 | 111.766 | 3.758.491 |
| 6. Other intangible assets | 009 | ||
| II. PROPERTY, PLANT AND EQUIPMENT (011 to 019) | 010 | 3.065.294.774 | 3.103.693.633 |
| 1. Land | 011 | 659.328.328 | 659.064.989 |
| 2. Buildings | 012 | 2.052.868.793 | 1.990.605.844 |
| 3. Plant and equipement | 013 | 203.822.037 | 185.776.554 |
| 4. Tools, working inventory and transportation assets | 014 | 64.897.404 | 65.771.085 |
| 5. Biological assets | 015 | ||
| 6. Advances for purchase of tangible assets | 016 | 5.072.180 | 5.013.480 |
| 7. Tangible assets in progress | 017 | 32.731.559 | 152.744.313 |
| 8. Other tangible assets | 018 | 24.833.592 | 23.362.203 |
| 9. Investment in real-estate | 019 | 21.740.881 | 21.355.165 |
| III. NON-CURRENT FINANCIAL ASSETS (021 to 028) | 020 | 46.547.373 | 6.106.730 |
| 1. Share in related parties | 021 | 1.241.421 | 1.513.799 |
| 2. Loans to related parties | 022 | ||
| 3. Participating interests (shares) | 023 | 140.000 | 140.000 |
| 4. Loans to companies with participating interest | 024 | ||
| 5. Investments in securities | 025 | 44.761.794 | 4.102.900 |
| 6. Loans, deposits, etc. | 026 | 404.158 | 350.031 |
| 7. Other non-current financial assets | 027 | ||
| 8. Equity-accounted investments | 028 | ||
| IV. RECEIVABLES (030 to 032) | 029 | 645.153 | 565.172 |
| 1. Receivables from related parties | 030 | ||
| 2. Receivables arising from sales on credit | 031 | 286.116 | 258.121 |
| 3. Other receivables | 032 | 359.037 | 307.051 |
| V. DEFERRED TAX ASSET | 033 | 60.513.799 | 62.265.457 |
| C) CURRENT ASSETS (035+043+050+058) | 034 | 355.363.412 | 432.786.055 |
| I. INVENTORIES (036 to 042) | 035 | 9.761.018 | 15.403.070 |
| 1. Raw materials and supplies | 036 | 8.951.383 | 14.212.262 |
| 2. Production in progress | 037 | ||
| 3. Finished products | 038 | ||
| 4. Merchandise | 039 | 64.641 | 445.814 |
| 5. Advances for inventories | 040 | ||
| 6. Long term assets held for sale | 041 | 744.994 | 744.994 |
| 7. Biological assets | 042 | ||
| II. RECEIVABLES (044 to 049) | 043 | 26.681.432 | 87.251.797 |
| 1. Receivables from related parties | 044 | 458 | 980 |
| 2. Receivables from end-customers | 045 | 13.147.988 | 72.525.164 |
| 3. Receivables from participating parties | 046 | 253 | 253 |
| 4. Receivables from employees and members of the company | 047 | 485.727 | 4.183.007 |
| 5. Receivables from government and other institutions | 048 | 9.285.057 | 2.218.324 |
| 6. Other receivables | 049 | 3.761.949 | 8.324.069 |
| III. CURRENT FINANCIAL ASSETS (051 to 057) | 050 | 165.680 | 3.394.831 |
| 1. Share in related parties | 051 | ||
| 2. Loans to related parties | 052 | ||
| 3. Participating interests (shares) | 053 | ||
| 4. Loans to companies with participating interest | 054 | ||
| 5. Investments in securities | 055 | ||
| 6. Loans, deposits, etc. | 056 | 24.845 | 702.190 |
| 7. Other financial assets | 057 | 140.835 | 2.692.641 |
| IV. CASH AND CASH EQUIVALENTS | 058 | 318.755.282 | 326.736.357 |
| D) PREPAYMENTS AND ACCRUED INCOME | 059 | 21.247.239 | 90.068.591 |
| E) TOTAL ASSETS (001+002+034+059) | 060 | 3.566.618.693 | 3.714.959.673 |
| F) OFF BALANCE SHEET ITEMS | 061 | 54.717.679 | 54.675.282 |
| Position | AOP | Previous period | Current period |
|---|---|---|---|
| 1 | 2 | 3 | 4 |
| EQUITY AND LIABILITIES | |||
| A) ISSUED CAPITAL AND RESERVES (063+064+065+071+072+075+078) | 062 | 1.901.690.680 | 1.796.932.333 |
| I. SUBSCRIBED SHARE CAPITAL | 063 | 1.672.021.210 | 1.672.021.210 |
| II. CAPITAL RESERVES | 064 | -373.815 | 3.573.938 |
| III.RESERVES FROM PROFIT (066+067-068+069+070) | 065 | 62.737.202 | 85.417.585 |
| 1. Legal reserves | 066 | 61.906.040 | 67.198.750 |
| 2. Reserve for own shares | 067 | 34.344.407 | 44.815.284 |
| 3. Treasury shares and shares (deductible items) | 068 | 33.513.245 | 36.125.572 |
| 4. Statutory reserves | 069 | ||
| 5. Other reserves | 070 | 9.529.123 | |
| IV. REVALUATION RESERVES | 071 | 31.189.526 | 52.569 |
| V. RETAINED EARNINGS OR LOSS CARRIED FORWARD (073-074) | 072 | 30.576.912 | 36.541.451 |
| 1. Retained earnings | 073 | 30.576.912 | 36.541.451 |
| 2. Loss carried forward | 074 | ||
| VI. NET PROFIT OR LOSS FOR THE PERIOD (076-077) | 075 | 105.441.776 | -770.660 |
| 1. Net profit for the period | 076 | 105.441.776 | |
| 2. Net loss for the period | 077 | 770.660 | |
| VII. MINORITY INTEREST | 078 | 97.869 | 96.240 |
| B) PROVISIONS (080 to 082) | 079 | 87.186 | 0 |
| 1. Provisions for pensions, severance pay and similar liabilities | 080 | ||
| 2. Provisions for tax liabilities | 081 | 16.011 | |
| 3. Other provisions | 082 | 71.175 | |
| C) NON-CURRENT LIABILITIES (084 to 092) | 083 | 1.331.861.034 | 1.409.664.984 |
| 1. Liabilites to related parties | 084 | ||
| 2. Liabilities for loans, deposits, etc. | 085 | ||
| 3. Liabilities to banks and other financial institutions | 086 | 1.306.223.976 | 1.384.883.884 |
| 4. Liabilities for advances | 087 | ||
| 5. Trade payables | 088 | ||
| 6. Commitments on securities | 089 | ||
| 7. Liabilities to companies with participating interest | 090 | ||
| 8. Other non-current liabilities | 091 | 2.833.087 | 4.909.709 |
| 9. Deferred tax liabilities | 092 | 22.803.971 | 19.871.391 |
| D) CURRENT LIABILITIES (094 to 105) | 093 | 229.556.759 | 418.421.969 |
| 1. Liabilites to related parties | 094 | 70.585 | |
| 2. Liabilities for loans, deposits, etc. | 095 | ||
| 3. Liabilities to banks and other financial institutions | 096 | 139.838.023 | 102.245.902 |
| 4. Liabilities for advances | 097 | 14.788.881 | 171.954.191 |
| 5. Trade payables | 098 | 47.731.018 | 84.408.547 |
| 6. Commitments on securities | 099 | ||
| 7. Liabilities to companies with participating interest | 100 | ||
| 8. Liabilities to emloyees | 101 | 15.738.902 | 26.652.393 |
| 9. Taxes, contributions and similar liabilities | 102 | 7.870.246 | 29.278.029 |
| 10. Liabilities arising from share in the result | 103 | 45.653 | 72.403 |
| 11. Liabilities arising from non-current assets held for sale | 104 | 2.832 | |
| 12. Other current liabilities | 105 | 3.470.619 | 3.810.504 |
| E) ACCRUED EXPENSES AND DEFERRED INCOME | 106 | 103.423.034 | 89.940.387 |
| F) TOTAL EQUITY AND LIABILITIES (062+079+083+093+106) | 107 | 3.566.618.693 | 3.714.959.673 |
| G) OFF BALANCE SHEET ITEMS | 108 | 54.717.679 | 54.675.282 |
| ADDITION TO BALANCE SHEET (only for consolidated financial statements) | |||
| A) ISSUED CAPITAL AND RESERVES | |||
| 1. Attributable to majority owners | 109 | 1.901.592.811 | 1.796.836.093 |
| 2. Attributable to minority interest | 110 | 97.869 | 96.240 |
| Position | AOP | Previous period | Current period | ||
|---|---|---|---|---|---|
| Cummulative | Quarter | Cummulative | Quarter | ||
| 1 | 2 | 3 | 4 | 5 | 6 |
| I. OPERATING INCOME (112 to 113) | 111 | 355.409.985 | 331.426.428 | 435.205.124 | 382.399.363 |
| 1. Sales revenues | 112 | 342.821.905 | 325.805.705 | 419.648.604 | 373.594.742 |
| 2. Other operating revenues | 113 | 12.588.080 | 5.620.723 | 15.556.520 | 8.804.621 |
| II. OPERATING COSTS | 114 | 440.414.953 | 295.630.439 | 480.337.361 | 314.088.254 |
| (115+116+120+124+125+126+129+130) | |||||
| 1. Change in inventories of work in progress | 115 | ||||
| 2. Material expenses (117 to 119) | 116 | 147.151.247 | 118.205.173 | 148.171.187 | 116.327.628 |
| a) Costs of raw materials | 117 | 80.644.792 | 67.954.871 | 91.528.406 | 73.956.864 |
| b) Cost of goods sold | 118 | 391.622 | 383.168 | 565.037 | 522.162 |
| c) Other material expenses | 119 | 66.114.833 | 49.867.134 | 56.077.744 | 41.848.602 |
| 3. Employee benefits expenses (121 to 123) | 120 | 126.494.254 | 88.912.055 | 145.598.450 | 99.175.730 |
| a) Net salaries | 121 | 75.441.730 | 53.689.061 | 88.067.739 | 60.821.970 |
| b) Tax and contributions from salary expenses | 122 | 33.047.039 | 22.668.388 | 35.959.658 | 23.919.867 |
| c) Contributions on salary | 123 | 18.005.485 | 12.554.606 | 21.571.053 | 14.433.893 |
| 4. Depreciation and amortisation | 124 | 114.797.426 | 57.410.123 | 131.402.096 | 65.782.544 |
| 5. Other expenses | 125 | 47.403.991 | 28.576.011 | 50.855.450 | 31.476.380 |
| 6. Write down of assets (127+128) | 126 | 235.807 | 108.959 | 41.750 | 38.525 |
| a) non-current assets (except financial assets) | 127 | ||||
| b) current assets (except financial assets) | 128 | 235.807 | 108.959 | 41.750 | 38.525 |
| 7. Provisions | 129 | ||||
| 8. Other operating costs | 130 | 4.332.228 | 2.418.118 | 4.268.428 | 1.287.447 |
| III. FINANCIAL INCOME (132 to 136) | 131 | 16.968.671 | 12.544.923 | 71.958.746 | 38.265.346 |
| 1. Interest, foreign exchange differences, dividends and | |||||
| similar income from related parties | 132 | ||||
| 2. Interest, foreign exchange differences, dividends and | 133 | 12.694.032 | 10.095.517 | 29.112.485 | 5.326.376 |
| similar income from third parties | |||||
| 3. Income from investments in associates and joint ventures | 134 | ||||
| 4. Unrealised gains (income) from financial assets | 135 | 3.353.518 | 1.849.173 | 5.873.651 | 4.962.161 |
| 5. Other financial income | 136 | 921.121 | 600.233 | 36.972.610 | 27.976.809 |
| IV. FINANCIAL EXPENSES (138 to 141) | 137 | 41.226.017 | 8.327.230 | 29.484.748 | 13.782.708 |
| 1. Interest, foreign exchange differences, dividends and | 138 | ||||
| similar expenses from related parties | |||||
| 2. Interest, foreign exchange differences, dividends and similar expenses from third parties |
139 | 39.196.488 | 7.674.253 | 22.995.327 | 10.617.729 |
| 3. Unrealised losses (expenses) from financial assets | 140 | 1.671.778 | 405.278 | 4.926.588 | 2.873.481 |
| 4. Other financial expenses | 141 | 357.751 | 247.699 | 1.562.833 | 291.498 |
| V. SHARE OF PROFIT FROM ASSOCIATED COMPANIES | 142 | ||||
| VI. SHARE OF LOSS FROM ASSOCIATED COMPANIES | 143 | ||||
| VII. EXTRAORDINARY - OTHER INCOME | 144 | ||||
| VIII. EXTRAORDINARY - OTHER EXPENSES | 145 | ||||
| IX. TOTAL INCOME (111+131+142+144) | 146 | 372.378.656 | 343.971.351 | 507.163.870 | 420.664.709 |
| X. TOTAL EXPENSES (114+137+143+145) | 147 | 481.640.970 | 303.957.669 | 509.822.109 | 327.870.962 |
| XI. PROFIT OR LOSS BEFORE TAXES (146-147) | 148 | -109.262.314 | 40.013.682 | -2.658.239 | 92.793.747 |
| 1. Profit before taxes (146-147) | 149 | 0 | 40.013.682 | 0 | 92.793.747 |
| 2. Loss before taxes (147-146) | 150 | 109.262.314 | 0 | 2.658.239 | 0 |
| XII. TAXATION | 151 | -637.338 | -1.885.951 | ||
| XIII. PROFIT OR LOSS FOR THE PERIOD (148-151) | 152 | -108.624.976 | 40.013.682 | -772.288 | 92.793.747 |
| 1. Profit for the period (149-151) | 153 | 0 | 40.013.682 | 0 | 92.793.747 |
| 2. Loss for the period (151-148) | 154 | 108.624.976 | 0 | 772.288 | 0 |
Company: Valamar Riviera d.d.
| Position | AOP | Previous period | Current period | ||
|---|---|---|---|---|---|
| Cummulative | Quarter | Cummulative | Quarter | ||
| 1 | 2 | 3 | 4 | 5 | 6 |
| XIV. PROFIT OR LOSS FOR THE PERIOD | |||||
|---|---|---|---|---|---|
| 1. Attributable to majority owners | 155 | -108.623.872 | 40.008.387 | -770.660 | 92.790.215 |
| 2. Attributable to minority interest | 156 | -1.104 | 5.295 | -1.628 | 3.532 |
| I. PROFIT OR LOSS FOR THE PERIOD (=152) | 157 | -108.624.976 | 40.013.682 | -772.288 | 92.793.747 |
|---|---|---|---|---|---|
| II. OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAXES (159 to 165) |
158 | 6.553.118 | 6.553.118 | -33.432.007 | -24.973.318 |
| 1. Exchange differences from international settlement | 159 | ||||
| 2. Changes in revaluation reserves of long-term tangible and intangible assets |
160 | ||||
| 3. Profit or loss from re-evaluation of financial assets held for sale |
161 | 6.553.118 | 6.553.118 | -33.432.007 | -24.973.318 |
| 4. Profit or loss from cash flow hedging | 162 | ||||
| 5. Profit or loss from hedging of foreign investments | 163 | ||||
| 6. Share of other comprehensive income/loss from associated companies |
164 | ||||
| 7. Actuarial gains/losses from defined benefit plans | 165 | ||||
| III. TAXATION OF OTHER COMPREHENSIVE INCOME FOR THE PERIOD |
166 | 1.310.624 | 1.310.624 | -2.684.410 | -882.806 |
| IV. NET OTHER COMPREHENSIVE INCOME FOR THE PERIOD (158-166) |
167 | 5.242.494 | 5.242.494 | -30.747.597 | -24.090.512 |
| V. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (157+167) |
168 | -103.382.482 | 45.256.176 | -31.519.885 | 68.703.235 |
| VI. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD |
|||||
|---|---|---|---|---|---|
| 1. Attributable to majority owners | 169 | -103.381.378 | 45.250.881 | -31.518.257 | 68.699.703 |
| 2. Attributable to minority interest | 170 | -1.104 | 5.295 | -1.628 | 3.532 |
| Position | AOP | Previous period | Current period |
|---|---|---|---|
| 1 | 2 | 3 | 4 |
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
| 1. Profit before tax | 001 | -108.623.872 | -2.658.239 |
| 2. Depreciation and amortisation | 002 | 114.797.426 | 131.402.096 |
| 3. Increase of current liabilities | 003 | 229.382.350 | 226.457.330 |
| 4. Decrease of current receivables | 004 | ||
| 5. Decrease of inventories | 005 | ||
| 6. Other cash flow increases | 006 | 52.997 | 79.981 |
| I. Total increase of cash flow from operating activities (001 to 006) | 007 | 235.608.901 | 355.281.168 |
| 1. Decrease of current liabilities | 008 | ||
| 2. Increase of current receivables | 009 | 51.956.990 | 60.570.365 |
| 3. Increase of inventories | 010 | 3.521.848 | 5.642.052 |
| 4. Other cash flow decreases | 011 | 64.435.302 | 84.618.767 |
| II. Total decrease of cash flow from operating activities (008 to 011) | 012 | 119.914.140 | 150.831.184 |
| A1) NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (007-012) | 013 | 115.694.761 | 204.449.984 |
| A2) NET DECREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007) | 014 | 0 | 0 |
| CASH FLOW FROM INVESTING ACTIVITIES | |||
| 1. Proceeds from sale of non-current assets | 015 | ||
| 2. Proceeds from sale of non-current financial assets | 016 | 40.252.142 | |
| 3. Interest received | 017 | ||
| 4. Dividend received | 018 | ||
| 5. Other proceeds from investing activities | 019 | ||
| III. Total cash inflows from investing activities (015 to 019) | 020 | 0 | 40.252.142 |
| 1. Purchase of non-current assets | 021 | 587.227.435 | 172.268.048 |
| 2. Purchase of non-current financial assets | 022 | ||
| 3. Other cash outflows from investing activities | 023 | 3.980.415 | 1.751.658 |
| IV. Total cash outflows from investing activities (021 to 023) | 024 | 591.207.850 | 174.019.706 |
| B1) NET INCREASE OF CASH FLOW FROM INVESTING ACTIVITIES (020-024) | 025 | 0 | 0 |
| B2) NET DECREASE OF CASH FLOW FROM INVESTING ACTIVITIES (024-020) | 026 | 591.207.850 | 133.767.564 |
| CASH FLOW FROM FINANCING ACTIVITIES | |||
| 1. Proceeds from issue of equity securities and debt securities | 027 | 9.284.451 | 1.628 |
| 2. Proceeds from loans and borrowings | 028 | 423.887.474 | 41.067.788 |
| 3. Other proceeds from financing activities | 029 | 1.310.623 | |
| V. Total cash inflows from financing activities (027 to 029) | 030 | 434.482.548 | 41.069.416 |
| 1. Repayment of loans and bonds | 031 | ||
| 2. Dividends paid | 032 | 37.330.521 | |
| 3. Repayment of finance lease | 033 | ||
| 4. Purchase of treasury shares | 034 | 4.462.755 | 35.692.643 |
| 5. Other cash outflows from financing activities | 035 | 30.747.597 | |
| VI. Total cash outflows from financing activities (031 to 035) | 036 | 4.462.755 | 103.770.761 |
| C1) NET INCREASE OF CASH FLOW FROM FINANCING ACTIVITIES (030-036) | 037 | 430.019.793 | 0 |
| C2) NET DECREASE OF CASH FLOW FROM FINANCING ACTIVITIES (036-030) | 038 | 0 | 62.701.345 |
| Total increases of cash flows (013-014+025-026+037-038) | 039 | 0 | 7.981.075 |
| Total decreases of cash flows (014-013+026-025+038-037) | 040 | 45.493.296 | 0 |
| Cash and cash equivalents at the beginning of period | 041 | 195.201.504 | 318.755.282 |
| Increase of cash and cash equivalents | 042 | 7.981.075 | |
| Decrease of cash and cash equivalents | 043 | 45.493.296 | 0 |
| Cash and cash equivalents at the end of period | 044 | 149.708.208 | 326.736.357 |
| Position | AOP | Previous year | Current year |
|---|---|---|---|
| 1 | 2 | 3 | 4 |
| 1. Subscribed share capital | 001 | 1.672.021.210 | 1.672.021.210 |
| 2. Capital reserves | 002 | -373.815 | 3.573.938 |
| 3. Reserves from profit | 003 | 62.737.202 | 85.417.585 |
| 4. Retained earnings or loss carried forward | 004 | 30.576.912 | 36.541.451 |
| 5. Net profit or loss for the period | 005 | 105.441.776 | -770.660 |
| 6. Revaluation of tangible assets | 006 | ||
| 7. Revaluation of intangible assets | 007 | ||
| 8. Revaluation of available for sale assets | 008 | 31.189.526 | 52.569 |
| 9. Other revaluation | 009 | ||
| 10. Total equity and reserves (AOP 001 to 009) | 010 | 1.901.592.811 | 1.796.836.093 |
| 11. Foreign exchenge differences from foreign investments | 011 | ||
| 12. Current and deferred taxes | 012 | ||
| 13. Cash flow hedge | 013 | ||
| 14. Change of accounting policies | 014 | ||
| 15. Correction of significant mistakes of prior period | 015 | ||
| 16. Other changes | 016 | ||
| 17.Total increase or decrease of equity (AOP 011 to 016) | 017 | 0 | 0 |
| 17 a. Attributable to majority owners | 018 | 1.901.592.811 | 1.796.836.093 |
| 17 b. Attributable to minority interest | 019 | 97.869 | 96.240 |
(1) The notes to financial statements include additional and supplemental information not presented in the Balance Sheet, Income Statement, Cash Flow Statement or the Statement of Changes in Equity in accordance with the provisions of the relevant financial reporting standards.
| Companies of the consolidation subject | Balance sheet-previous period | Balance sheet-current period |
|---|---|---|
| 2015. | 31.12.2015. | |
| Valamar hoteli i ljetovališta d.o.o. | Yes (merged to Valamar Riviera d.d. 27.2.2015.) | |
| Citatis d.o.o. | Yes (merged to Bastion d.o.o. 12.11.2015.) | |
| Mirta Bašćanska d.o.o. | Yes (merged to Hoteli Baška d.d. 13.1.2016.) | |
| Vala Bašćanska d.o.o. | Yes (merged to Hoteli Baška d.d. 13.1.2016.) | |
| Baškaturist d.o.o. | Yes (merged to Hoteli Baška d.d. 13.1.2016.) | |
| Hoteli Baška d.d. | Yes (merged to Valamar Riviera d.d. 31.3.2016.) | |
| Valamar hotels & resorts GmbH | Yes | No |
| Bastion upravljanje d.o.o. | Yes | Yes |
| Elafiti Babin kuk d.o.o. | Yes | Yes |
| Magične stijene d.o.o. | Yes | Yes |
| Palme turizam d.o.o. | Yes | Yes |
| Pogača Babin Kuk d.o.o. | Yes | Yes |
| Bugenvilia d.o.o. | Yes | Yes |
| Puntižela d.o.o. | Yes | Yes |
| Companies of the consolidation subject: | Income statment-previous period | Income statment-current period |
|---|---|---|
| 2016. | 30.6.2015. | 30.6.2016. |
| Valamar hoteli i ljetovališta d.o.o. | 1.1.-27.2. (merged to Valamar Riviera d.d. 27.2.2015.) |
- |
| Citatis d.o.o. | 01.1.-30.6. | |
| (merged to Bastion d.o.o. 12.11.2015.) | - | |
| Mirta Bašćanska d.o.o. | - | 1.1.-13.1. (merged to Hoteli Baška d.d. 13.1.2016.) |
| Vala Bašćanska d.o.o. | - | 1.1.-13.1. |
| Baškaturist d.o.o. | - | (merged to Hoteli Baška d.d. 13.1.2016.) 1.1.-13.1. |
| Hoteli Baška d.d. | - | (merged to Hoteli Baška d.d. 13.1.2016.) 1.1.-31.3. (merged to Valamar Riviera d.d. 31.3.2016.) |
| Valamar hotels & resorts GmbH | - | - |
| Bastion upravljanje d.o.o. | 1.1.-30.6. | 1.1.-30.6. |
| Elafiti Babin kuk d.o.o. | 1.1.-30.6. | 1.1.-30.6. |
| Magične stijene d.o.o. | 1.1.-30.6. | 1.1.-30.6. |
| Palme turizam d.o.o. | 1.1.-30.6. | 1.1.-30.6. |
| Pogača Babin Kuk d.o.o. | 1.1.-30.6. | 1.1.-30.6. |
| Bugenvilia d.o.o. | 1.1.-30.6. | 1.1.-30.6. |
| Puntižela d.o.o. | 1.1.-30.6. | 1.1.-30.6. |
Quarterly financial report TFI-POD
| Tax number (MB): | 3474771 | |||
|---|---|---|---|---|
| Company registration number (MBS): |
040020883 | |||
| Personal identification number (OIB): |
36201212847 | |||
| Issuing company: | Valamar Riviera d.d. | |||
| Postal code and place | 52440 | Poreč | ||
| Street and house number: | Stancija Kaligari 1 | |||
| E-mail address: | [email protected] | |||
| Internet address: | www.valamar-riviera.com | |||
| Municipality/city code and name: | 348 | Poreč | ||
| Number of employees: |
||||
| County code and name: | 18 | Istarska | (period end) | 3.806 |
| NKD code: | 5510 | |||
| Consolidated report: | NO | |||
| Companies of the consolidation subject (according to IFRS): |
Seat: | MB: | ||
| Bookkeeping service: | ||||
| Contact person: | Sopta Anka | |||
| (only surname and name) | ||||
| Telephone: | 052/408 188 | Telefaks: | 052/408 110 | |
| E-mail address: | [email protected] | |||
| Family name and name: | Kukurin Željko, Čižmek Marko | |||
| (person authorized to represent the company) | ||||
Documents disclosed:
(Balance Sheet, Income Statement, Cash Flow Statement, Statement of Changes in Equity and notes to financial statements)
Management Interim Report
Declaration of the persons responsible for preparing the issuer's statements
L.S. (signature of the person authorized to represent the company)
| Position | AOP | Previous period | Current period |
|---|---|---|---|
| 1 | 2 | 3 | 4 |
| ASSETS | |||
| A) RECEIVABELS FOR SUBSCRIBED NOT PAID CAPITAL | 001 | ||
| B) NON-CURRENT ASSETS (003+010+020+029+033) | 002 | 3.171.672.610 | 3.369.427.170 |
| I. INTANGIBLE ASSETS (004 to 009) | 003 | 9.202.261 | 12.853.159 |
| 1. Expenditure for development | 004 | ||
| 2. Concessions, patents, licenses, trademarks, service marks, software and other rights | 005 | 9.090.495 | 9.094.668 |
| 3. Goodwill | 006 | ||
| 4. Advances for purchase of intangible assets | 007 | ||
| 5. Intangible assets in progress | 008 | 111.766 | 3.758.491 |
| 6. Other intangible assets | 009 | ||
| II. PROPERTY, PLANT AND EQUIPMENT (011 to 019) | 010 | 2.379.794.741 | 2.797.027.212 |
| 1. Land | 011 | 519.577.779 | 592.402.633 |
| 2. Buildings | 012 | 1.525.902.691 | 1.755.623.425 |
| 3. Plant and equipement | 013 | 189.682.352 | 184.992.333 |
| 4. Tools, working inventory and transportation assets | 014 | 63.877.369 | 65.636.651 |
| 5. Biological assets | 015 | ||
| 6. Advances for purchase of tangible assets | 016 | 5.072.180 | 5.013.480 |
| 7. Tangible assets in progress | 017 | 32.557.369 | 151.849.708 |
| 8. Other tangible assets | 018 | 24.663.310 | 23.360.827 |
| 9. Investment in real-estate | 019 | 18.461.691 | 18.148.155 |
| III. NON-CURRENT FINANCIAL ASSETS (021 to 028) | 020 | 625.876.740 | 400.938.921 |
| 1. Share in related parties | 021 | 584.753.048 | 396.526.788 |
| 2. Loans to related parties | 022 | ||
| 3. Participating interests (shares) | 023 | 140.000 | 140.000 |
| 4. Loans to companies with participating interest | 024 | ||
| 5. Investments in securities | 025 | 40.983.692 | 3.922.102 |
| 6. Loans, deposits, etc. | 026 | 350.031 | |
| 7. Other non-current financial assets | 027 | ||
| 8. Equity-accounted investments | 028 | ||
| IV. RECEIVABLES (030 to 032) | 029 | 136.460.510 | 136.380.529 |
| 1. Receivables from related parties | 030 | 135.815.357 | 135.815.357 |
| 2. Receivables arising from sales on credit | 031 | 286.116 | 258.121 |
| 3. Other receivables | 032 | 359.037 | 307.051 |
| V. DEFERRED TAX ASSET | 033 | 20.338.358 | 22.227.349 |
| C) CURRENT ASSETS (035+043+050+058) | 034 | 363.445.425 | 440.835.937 |
| I. INVENTORIES (036 to 042) | 035 | 9.604.766 | 15.403.070 |
| 1. Raw materials and supplies | 036 | 8.810.975 | 14.212.262 |
| 2. Production in progress | 037 | ||
| 3. Finished products | 038 | ||
| 4. Merchandise | 039 | 48.797 | 445.814 |
| 5. Advances for inventories | 040 | ||
| 6. Long term assets held for sale | 041 | 744.994 | 744.994 |
| 7. Biological assets | 042 | ||
| II. RECEIVABLES (044 to 049) | 043 | 51.857.599 | 102.222.650 |
| 1. Receivables from related parties | 044 | 29.181.921 | 15.751.522 |
| 2. Receivables from end-customers | 045 | 12.765.099 | 71.837.498 |
| 3. Receivables from participating parties | 046 | ||
| 4. Receivables from employees and members of the company | 047 | 485.286 | 4.092.572 |
| 5. Receivables from government and other institutions | 048 | 7.009.354 | 2.218.174 |
| 6. Other receivables | 049 | 2.415.939 | 8.322.884 |
| III. CURRENT FINANCIAL ASSETS (051 to 057) | 050 | 185.980 | 3.415.630 |
| 1. Share in related parties | 051 | ||
| 2. Loans to related parties | 052 | 20.300 | 20.800 |
| 3. Participating interests (shares) | 053 | ||
| 4. Loans to companies with participating interest | 054 | ||
| 5. Investments in securities | 055 | ||
| 6. Loans, deposits, etc. | 056 | 24.845 | 702.190 |
| 7. Other financial assets | 057 | 140.835 | 2.692.640 |
| IV. CASH AND CASH EQUIVALENTS | 058 | 301.797.080 | 319.794.587 |
| D) PREPAYMENTS AND ACCRUED INCOME | 059 | 20.594.349 | 87.783.638 |
| E) TOTAL ASSETS (001+002+034+059) | 060 | 3.555.712.384 | 3.898.046.745 |
| F) OFF BALANCE SHEET ITEMS | 061 | 54.717.679 | 54.675.282 |
| Position | AOP | Previous period | Current period |
|---|---|---|---|
| 1 | 2 | 3 | 4 |
| EQUITY AND LIABILITIES | |||
| A) ISSUED CAPITAL AND RESERVES (063+064+065+071+072+075+078) | 062 | 2.088.581.493 | 1.993.697.305 |
| I. SUBSCRIBED SHARE CAPITAL | 063 | 1.672.021.210 | 1.672.021.210 |
| II. CAPITAL RESERVES | 064 | 109.139 | 3.573.938 |
| III.RESERVES FROM PROFIT (066+067-068+069+070) | 065 | 67.203.861 | 89.884.244 |
| 1. Legal reserves | 066 | 61.906.040 | 67.198.750 |
| 2. Reserve for own shares | 067 | 34.344.407 | 44.815.284 |
| 3. Treasury shares and shares (deductible items) | 068 | 29.046.586 | 31.658.913 |
| 4. Statutory reserves | 069 | ||
| 5. Other reserves | 070 | 9.529.123 | |
| IV. REVALUATION RESERVES | 071 | 31.431.842 | 120.668 |
| V. RETAINED EARNINGS OR LOSS CARRIED FORWARD (073-074) | 072 | 211.961.240 | 226.506.669 |
| 1. Retained earnings | 073 | 211.961.240 | 226.506.669 |
| 2. Loss carried forward | 074 | ||
| VI. NET PROFIT OR LOSS FOR THE PERIOD (076-077) | 075 | 105.854.201 | 1.590.576 |
| 1. Net profit for the period | 076 | 105.854.201 | 1.590.576 |
| 2. Net loss for the period | 077 | ||
| VII. MINORITY INTEREST | 078 | ||
| B) PROVISIONS (080 to 082) | 079 | 0 | 0 |
| 1. Provisions for pensions, severance pay and similar liabilities | 080 | ||
| 2. Provisions for tax liabilities | 081 | ||
| 3. Other provisions | 082 | ||
| C) NON-CURRENT LIABILITIES (084 to 092) | 083 | 1.164.439.231 | 1.401.131.718 |
| 1. Liabilites to related parties | 084 | ||
| 2. Liabilities for loans, deposits, etc. | 085 | ||
| 3. Liabilities to banks and other financial institutions | 086 | 1.158.888.007 | 1.376.329.639 |
| 4. Liabilities for advances | 087 | ||
| 5. Trade payables | 088 | ||
| 6. Commitments on securities | 089 | ||
| 7. Liabilities to companies with participating interest | 090 | ||
| 8. Other non-current liabilities | 091 | 2.833.086 | 4.909.709 |
| 9. Deferred tax liabilities | 092 | 2.718.138 | 19.892.370 |
| D) CURRENT LIABILITIES (094 to 105) | 093 | 205.346.633 | 413.537.839 |
| 1. Liabilites to related parties | 094 | 204.906 | 125.197 |
| 2. Liabilities for loans, deposits, etc. | 095 | ||
| 3. Liabilities to banks and other financial institutions | 096 | 125.355.698 | 101.431.212 |
| 4. Liabilities for advances | 097 | 12.944.972 | 168.871.265 |
| 5. Trade payables | 098 | 43.376.126 | 83.891.715 |
| 6. Commitments on securities | 099 | ||
| 7. Liabilities to companies with participating interest | 100 | ||
| 8. Liabilities to emloyees | 101 | 14.943.850 | 26.412.741 |
| 9. Taxes, contributions and similar liabilities | 102 | 6.643.162 | 28.932.526 |
| 10. Liabilities arising from share in the result | 103 | 59.985 | |
| 11. Liabilities arising from non-current assets held for sale | 104 | ||
| 12. Other current liabilities | 105 | 1.877.919 | 3.813.198 |
| E) ACCRUED EXPENSES AND DEFERRED INCOME | 106 | 97.345.027 | 89.679.883 |
| F) TOTAL EQUITY AND LIABILITIES (062+079+083+093+106) | 107 | 3.555.712.384 | 3.898.046.745 |
| G) OFF BALANCE SHEET ITEMS | 108 | 54.717.679 | 54.675.282 |
| ADDITION TO BALANCE SHEET (only for consolidated financial statements) | |||
| A) ISSUED CAPITAL AND RESERVES | |||
| 1. Attributable to majority owners | 109 | ||
| 2. Attributable to minority interest | 110 |
| Position | AOP | Previous period | Current period | ||
|---|---|---|---|---|---|
| Cummulative | Quarter | Cummulative | Quarter | ||
| 1 | 2 | 3 | 4 | 5 | 6 |
| I. OPERATING INCOME (112 + 113) | 111 | 352.561.204 | 328.368.023 | 428.954.339 | 378.538.652 |
| 1. Sales revenues | 112 | 340.024.539 | 322.658.493 | 416.545.792 | 370.422.878 |
| 2. Other operating revenues | 113 | 12.536.665 | 5.709.530 | 12.408.547 | 8.115.774 |
| II. OPERATING COSTS | 114 | 439.491.086 | 294.801.142 | 470.716.677 | 314.766.159 |
| (115+116+120+124+125+126+129+130) | |||||
| 1. Change in inventories of work in progress | 115 | ||||
| 2. Material expenses (117 to 119) | 116 | 162.047.807 | 124.552.435 | 159.900.604 | 122.411.408 |
| a) Costs of raw materials | 117 | 80.115.307 | 67.622.514 | 90.469.259 | 73.268.144 |
| b) Cost of goods sold | 118 | 387.545 | 381.569 | 565.038 | 522.163 |
| c) Other material expenses | 119 | 81.544.955 | 56.548.352 | 68.866.307 | 48.621.101 |
| 3. Employee benefits expenses (121 to 123) | 120 | 121.679.941 | 87.946.316 | 141.185.679 | 98.289.066 |
| a) Net salaries | 121 | 72.853.985 | 53.133.370 | 86.014.541 | 60.318.723 |
| b) Tax and contributions from salary expenses | 122 | 31.367.196 | 22.302.496 | 35.034.227 | 23.919.867 |
| c) Contributions on salary | 123 | 17.458.760 | 12.510.450 | 20.136.911 | 14.050.476 |
| 4. Depreciation and amortisation | 124 | 107.139.171 | 53.654.687 | 118.284.009 | 61.947.268 |
| 5. Other expenses | 125 | 46.286.221 | 28.210.471 | 49.699.510 | 31.290.485 |
| 6. Write down of assets (127+128) | 126 | 235.807 | 108.959 | 41.750 | 38.525 |
| a) non-current assets (except financial assets) | 127 | ||||
| b) current assets (except financial assets) | 128 | 235.807 | 108.959 | 41.750 | 38.525 |
| 7. Provisions | 129 | ||||
| 8. Other operating costs | 130 | 2.102.139 | 328.274 | 1.605.125 | 789.407 |
| III. FINANCIAL INCOME (132 to 136) | 131 | 40.619.996 | 12.272.495 | 69.275.275 | 38.181.248 |
| 1. Interest, foreign exchange differences, dividends and similar income from related parties |
132 | 24.037.704 | 0 | ||
| 2. Interest, foreign exchange differences, dividends and similar income from third parties |
133 | 12.307.654 | 9.823.091 | 26.827.021 | 5.242.279 |
| 3. Income from investments in associates and joint ventures | 134 | ||||
| 4. Unrealised gains (income) from financial assets | 135 | 3.353.517 | 1.849.171 | 5.873.651 | 4.962.161 |
| 5. Other financial income | 136 | 921.121 | 600.233 | 36.574.603 | 27.976.808 |
| IV. FINANCIAL EXPENSES (138 to 141) | 137 | 39.865.518 | 7.753.523 | 25.922.361 | 13.073.988 |
| 1. Interest, foreign exchange differences, dividends and | 138 | ||||
| similar expenses from related parties | |||||
| 2. Interest, foreign exchange differences, dividends and | 139 | 37.835.989 | 7.100.546 | 20.366.260 | 9.909.008 |
| similar expenses from third parties | |||||
| 3. Unrealised losses (expenses) from financial assets | 140 | 1.671.778 | 405.278 | 4.926.588 | 2.873.481 |
| 4. Other financial expenses | 141 | 357.751 | 247.699 | 629.513 | 291.499 |
| V. SHARE OF PROFIT FROM ASSOCIATED COMPANIES | 142 | ||||
| VI. SHARE OF LOSS FROM ASSOCIATED COMPANIES | 143 | ||||
| VII. EXTRAORDINARY - OTHER INCOME | 144 | ||||
| VIII. EXTRAORDINARY - OTHER EXPENSES | 145 | ||||
| IX. TOTAL INCOME (111+131+142+144) | 146 | 393.181.200 | 340.640.518 | 498.229.614 | 416.719.900 |
| X. TOTAL EXPENSES (114+137+143+145) | 147 | 479.356.604 | 302.554.665 | 496.639.038 | 327.840.147 |
| XI. PROFIT OR LOSS BEFORE TAXES (146-147) | 148 | -86.175.404 | 38.085.853 | 1.590.576 | 88.879.753 |
| 1. Profit before taxes (146-147) | 149 | 0 | 38.085.853 | 1.590.576 | 88.879.753 |
| 2. Loss before taxes (147-146) | 150 | 86.175.404 | 0 | 0 | 0 |
| XII. TAXATION | 151 | ||||
| XIII. PROFIT OR LOSS FOR THE PERIOD (148-151) | 152 | -86.175.404 | 38.085.853 | 1.590.576 | 88.879.753 |
| 1. Profit for the period (149-151) | 153 | 0 | 38.085.853 | 1.590.576 | 88.879.753 |
| 2. Loss for the period (151-148) | 154 | 86.175.404 | 0 | 0 | 0 |
Company: Valamar Riviera d.d.
| Position | AOP | Previous period | Current period | ||
|---|---|---|---|---|---|
| Cummulative | Quarter | Cummulative | Quarter | ||
| 1 | 2 | 3 | 4 | 5 | 6 |
| XIV. PROFIT OR LOSS FOR THE PERIOD | |||||
|---|---|---|---|---|---|
| 1. Attributable to majority owners | 155 | -86.175.404 | 38.085.853 | 1.590.576 | 88.879.753 |
| 2. Attributable to minority interest | 156 |
| I. PROFIT OR LOSS FOR THE PERIOD (=152) | 157 | -86.175.404 | 38.085.853 | 1.590.576 | 88.879.753 |
|---|---|---|---|---|---|
| II. OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAXES (159 to 165) |
158 | 2.048.322 | 2.048.322 | -33.999.145 | -24.982.265 |
| 1. Exchange differences from international settlement | 159 | ||||
| 2. Changes in revaluation reserves of long-term tangible and intangible assets |
160 | ||||
| 3. Profit or loss from re-evaluation of financial assets held for sale |
161 | 2.048.322 | 2.048.322 | -33.999.145 | -24.982.265 |
| 4. Profit or loss from cash flow hedging | 162 | ||||
| 5. Profit or loss from hedging of foreign investments | 163 | ||||
| 6. Share of other comprehensive income/loss from associ atied companies |
164 | ||||
| 7. Actuarial gains/losses from defined benefit plans | 165 | ||||
| III. TAXATION OF OTHER COMPREHENSIVE INCOME FOR THE PERIOD |
166 | 409.664 | 409.664 | -2.687.971 | -884.594 |
| IV. NET OTHER COMPREHENSIVE INCOME FOR THE PERIOD (158-166) |
167 | 1.638.658 | 1.638.658 | -31.311.174 | -24.097.671 |
| V. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (157+167) |
168 | -84.536.746 | 39.724.511 | -29.720.598 | 64.782.082 |
| VI. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD |
|||
|---|---|---|---|
| 1. Attributable to majority owners | 169 | ||
| 2. Attributable to minority interest | 170 | ||
| 1 2 3 CASH FLOWS FROM OPERATING ACTIVITIES 1. Profit before tax 001 -86.175.404 1.590.576 002 107.139.171 118.284.009 2. Depreciation and amortisation 3. Increase of current liabilities 003 189.597.342 231.414.966 4. Decrease of current receivables 004 5. Decrease of inventories 005 6. Other cash flow increases 006 52.997 I. Total increase of cash flow from operating activities (001 to 006) 007 210.614.106 351.289.551 1. Decrease of current liabilities 008 2. Increase of current receivables 009 27.609.556 115.458.931 3. Increase of inventories 010 2.638.110 5.641.868 4. Other cash flow decreases 011 58.217.939 52.062.667 II. Total decrease of cash flow from operating activities (008 to 011) 012 88.465.605 173.163.466 A1) NET INCREASE OF CASH FLOW FROM OPERATING ACTIVITIES (007-012) 013 122.148.501 178.126.085 A2) NET DECREASE OF CASH FLOW FROM OPERATING ACTIVITIES (012-007) 014 0 0 CASH FLOW FROM INVESTING ACTIVITIES 1. Proceeds from sale of non-current assets 015 |
Position | AOP | Previous period | Current period |
|---|---|---|---|---|
| 4 | ||||
| 2. Proceeds from sale of non-current financial assets | 016 | 39.024.277 | ||
| 3. Interest received 017 |
||||
| 4. Dividend received 018 |
||||
| 5. Other proceeds from investing activities 019 |
2.549 | |||
| III. Total cash inflows from investing activities (015 to 019) 020 0 |
39.026.826 | |||
| 1. Purchase of non-current assets 021 221.994.698 |
169.461.124 | |||
| 2. Purchase of non-current financial assets 022 |
||||
| 3. Other cash outflows from investing activities 023 175.702.232 |
530.826 | |||
| IV. Total cash outflows from investing activities (021 to 023) 024 397.696.930 |
169.991.950 | |||
| B1) NET INCREASE OF CASH FLOW FROM INVESTING ACTIVITIES (020-024) 025 0 |
0 | |||
| B2) NET DECREASE OF CASH FLOW FROM INVESTING ACTIVITIES (024-020) 026 397.696.930 |
130.965.124 | |||
| CASH FLOW FROM FINANCING ACTIVITIES | ||||
| 1. Proceeds from issue of equity securities and debt securities 027 |
||||
| 2. Proceeds from loans and borrowings 028 263.384.553 |
153.895.331 | |||
| 3. Other proceeds from financing activities 029 1.638.658 |
||||
| V. Total cash inflows from financing activities (027 to 029) 030 265.023.211 |
153.895.331 | |||
| 1. Repayment of loans and bonds 031 |
110.035.621 | |||
| 2. Dividends paid 032 |
37.330.521 | |||
| 3. Repayment of finance lease 033 |
||||
| 4. Purchase of treasury shares 034 4.462.755 |
35.692.643 | |||
| 5. Other cash outflows from financing activities 035 9.251.135 |
||||
| VI. Total cash outflows from financing activities (031 to 035) 036 13.713.890 |
183.058.785 | |||
| C1) NET INCREASE OF CASH FLOW FROM FINANCING ACTIVITIES (030-036) 037 251.309.321 |
0 | |||
| C2) NET DECREASE OF CASH FLOW FROM FINANCING ACTIVITIES (036-030) 038 0 |
29.163.454 | |||
| Total increases of cash flows (013-014+025-026+037-038) 039 0 |
17.997.507 | |||
| Total decreases of cash flows (014-013+026-025+038-037) 040 24.239.108 |
0 | |||
| Cash and cash equivalents at the beginning of period 041 166.188.610 |
301.797.080 | |||
| Increase of cash and cash equivalents 042 |
17.997.507 | |||
| Decrease of cash and cash equivalents 043 24.239.108 |
0 | |||
| Cash and cash equivalents at the end of period 044 141.949.502 |
319.794.587 |
| Position | AOP | Previous year | Current year |
|---|---|---|---|
| 1 | 2 | 3 | 4 |
| 1. Subscribed share capital | 001 | 1.672.021.210 | 1.672.021.210 |
| 2. Capital reserves | 002 | 109.139 | 3.573.938 |
| 3. Reserves from profit | 003 | 67.203.861 | 89.884.244 |
| 4. Retained earnings or loss carried forward | 004 | 211.961.240 | 226.506.669 |
| 5. Net profit or loss for the period | 005 | 105.854.201 | 1.590.576 |
| 6. Revaluation of tangible assets | 006 | ||
| 7. Revaluation of intangible assets | 007 | ||
| 8. Revaluation of available for sale assets | 008 | 31.431.842 | 120.668 |
| 9. Other revaluation | 009 | ||
| 10. Total equity and reserves (AOP 001 to 009) | 010 | 2.088.581.493 | 1.993.697.305 |
| 11. Foreign exchenge differences from foreign investments | 011 | ||
| 12. Current and deferred taxes | 012 | ||
| 13. Cash flow hedge | 013 | ||
| 14. Change of accounting policies | 014 | ||
| 15. Correction of significant mistakes of prior period | 015 | ||
| 16. Other changes | 016 | ||
| 17.Total increase or decrease of equity (AOP 011 to 016) | 017 | 0 | 0 |
| 17 a. Attributable to majority owners | 018 | ||
| 17 b. Attributable to minority interest | 019 |
Valamar Riviera d.d. Stancija Kaligari 1 52440 Poreč, Hrvatska T +385 (52) 408 002 F +385 (52) 451 608 E [email protected] W www.valamar.com
Investor Relations 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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