Viro Tvornica ŠEĆERA d.d.

Annual / Quarterly Financial Statement • Jul 21, 2016

STATEMENT OF PERSON RESPONSIBLE FOR PRODUCTION OF THE SEMIANNUAL REPORT FOR 1H 2016

With this statement, in compliance with article 407, paragraph 2, an article 410 of the Law on capital market, I state that to the best of our knowledge

• the set of financial reports of VIRO TVORNICA ŠEĆERA d.d., Zagreb for $\frac{1}{2}$ the period I-VI 2016, produced by applying International standards of financial reporting and in compliance with the Croatian Law on Accounting, provides an integral and true overview of assets and liabilities, loss and profit, financial position and operations of the company.
• the Management report contains a true overview of business results and position of the company, with a description of the most significant risks and uncertanties to which the company is exposed.

In Virovitica, on July 21, 2016

RESPONSIBLE PERSON

PRESIDENT OF THE MANAGEMENT BOARD:

Zeljko Zadro, dipl.oec

A ŠEĆERA d.d.
AGREB

Appendix 1 Reporting period:	01.01.2016	tο	30.06.2016
	Quarterly Financial Report - TFI-POD
Registration number (MB) 01650971
Identification number of subject (MBS) 010049135
04525204420 Personal identification number (OIB)
Issueer company: VIRO TVORNICA ŠEĆERA d.d.
Postal code and place 10000	ZAGREB
Street and number ULICA GRADA VUKOVARA 269 g
E-mail address: viro@secerana.hr
Internet address: www.secerana.hr
Code and name of comune/town ZAGREB 133
Code and county name 21 GRAD ZAGREB			Number of employees	192
Consolidated statement NO			(at quarter end) NKD/NWC code:	1081
Subsidiaries subject to consolidation (according to IFRS):			Registration number:
Book keeping service:
Contact person: SMOJVER ZDENKA
(fill in only surname and name of contact person) Phone number: 033840122			Fascimile: 033840103
E-mail address: racunovodstvo-viro@secerana.hr
Surname and name ZADRO ŽELJKO
(authorised person for representation)
Disclosure documents: 1. Financial statements (balance sheet, profit and loss account, cash flow statement, statement of changes in shareholders' equity and notes to the financial statements 0. Clatement of convenible possesse for preparation of B

1. Statement of responsible persons for preparation of financial statements
   3. Report of the Management Board on position of the Company

à LA $\sim$ TVORNICA ŠEĆERA d.d. 4

(signed by authorised person for representation)

BALANCE SHEET $\overline{a}$ as at $\overline{a}$ 30.06.2016

Item	AOP code	Last year (net)	Current year
$\mathbf{1}$	$\overline{2}$	$\overline{\mathbf{3}}$	(net) $\overline{4}$
ASSETS
A) RECEIVABLES FOR SUBSCRIBED BUT NOT PAID-IN CAPITAL	001
B) LONG-TERM ASSETS (003+010+020+029+033)	002	765.801.159	753.997.462
I. INTANGIBLE ASSETS (004 to 009)	003	86.315	61.813
1. Assets development	004
2. Concessions, patents, licences fees, trade and service marks, software and other rights	005	86.315	61.813
3. Goodwill	006
4. Prepayments for purchase of intangible assets	007
5. Intangible assets in preparation	008
6. Other intangible assets	009
II. TANGIBLE ASSETS (011 to 019)	010	168.306.215	157.350.878
1. Land	011	5.548.592	5.548.592
2. Buildings	012	71.331.533	71.401.333
3. Plant and equipment	013	83.772.355	73.979.188
4. Tools, facility inventory and transport assets	014
5. Biological assets	015
6. Prepayments for tangible assets	016	307.627	448.748
7. Tangible assets in progress	017	5.112.658	3.814.307
8. Other tangible assets	018	9.300	9.300
9. Investments in buildings	019	2.224.150	2.149.410
III. LONG-TERM FINANCIAL ASSETS (021 to 028)	020	597.408.629	596.584.771
1. Investments (shares) with related parties	021	419.450.043	419.450.043
2. Loans given to related parties	022	177.343.482	176.265.964
3. Participating interest (shares)	023
4. Loans to entrepreneurs in whom the entity holds participating interests	024
5. Investments in securities	025	3.248	3.247
6. Loans, deposits and similar assets	026	611.856	865.517
7. Other long - term financial assets	027
8. Investments accounted by equity method	028
IV. RECEIVABLES (030 to 032)	029	0
1. Receivables from related parties	030		$\mathbf{0}$
2. Receivables from based on trade loans	031
3. Other receivables	032
V. DEFERRED TAX ASSETS	033
C) SHORT TERM ASSETS (035+043+050+058)
I. INVENTORIES (036 to 042)	034	435.839.083	474.392.917
1. Raw-material and supplies	035	179.521.872	254.390.308
2. Work in progress	036	15.634.383	25.358.416
3. Finished goods	037		38.636.017
4. Merchandise	038	74.153.867	98.374.680
5. Prepayments for inventories	039	47.598.499	60.245.757
6. Long - term assets held for sales	040	42.135.123	31.775.438
7. Biological assets	041
II. RECEIVABLES (044 to 049)	042
1. Receivables from related parties	043	204.219.640	110.197.249
2. Accounts receivable	044	71.406.529	18.632.097
3. Receivables from participating parties	045	121.960.367	69.985.786
4. Receivables from employees and members of related parties	046
5. Receivables from government and other institutions	047	2.372	802
6. Other receivables	048	10.743.689	21.461.819
III. SHORT TERM FINANCIAL ASSETS (051 to 057)	049	106.683	116.745
1. Shares (stocks) in related parties	050	45.095.292	79.018.953
2. Loans given to related parties	051
3. Participating interests (shares)	052	1.735.697	23.426.264
	053
4. Loans to entrepreneurs in whom the entity holds participating interests	054
5. Investments in securities	055
6. Loans, deposits, etc.	056	35.656.652	52.318.020
7. Other financial assets	057	7.702.943	3.274.669
IV. CASH AT BANK AND IN CASHIER	058	7.002.279	30.786.407
D) PREPAID EXPENSES AND ACCRUED REVENUE	059	7.761.345	2.498.457
E) TOTAL ASSETS (001+002+034+059)	060	1.209.401.587	1.230.888.836
F) OFF-BALANCE RECORDS	061	281.936.097	184.205.925

Item	AOP code	Last year (net)	Current year (net)
$\mathbf{1}$	$\overline{2}$	$3\phantom{a}$	$\overline{4}$
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	628.667.495	626.430.444
I. SUBSCRIBED CAPITAL	063	249.600.060	249.600.060
II. CAPITAL RESERVES	064	10.368.101	10.368.101
III.RESERVES FROM PROFIT (066+067-068+069+070)	065	56.346.673	56.346.673
1. Reserves prescribed by low	066	12.480.003	12.480.003
2. Reserves for treasury shares	067	43.866.670	43.866.670
3. Treasury stocks and shares (deduction)	068	0	$\circ$
4. Statutory reserves	069
5. Other reserves	070
IV. REVALUATION RESERVES	071
V. RETAINED EARNINGS OR ACCUMULATED LOSS (073-074)	072	318.901.121	312.352.661
1. Retained earnings	073	318.901.121	312.352.661
2. Accumulated loss	074
VI. PROFIT/LOSS FOR THE CURRENT YEAR (076-077)	075	$-6.548.460$	$-2.237.051$
1. Profit for the current year	076
2. Loss for the current year	077	6.548.460	2.237.051
IX. MINORITY INTERESTS	078
B) PROVISIONS (080 to 082)	079	0	$\mathbf{0}$
1. Provisions for pensions, severance pay, and similar liabilities	080
2. Reserves for tax liabilities	081
3. Other reserves	082
C) LONG - TERM LIABILITIES (084 to 092)	083	305.499.913	264.051.812
1. Liabilities to related parties	084
2. Liabilities for loans, deposits etc.	085
3. Liabilities to banks and other financial institutions	086	4.015.994 301.483.919	2.298.033
4. Liabilities for received prepayments	087		261.753.779
5. Accounts payable	088
6. Liabilities arising from debt securities
7. Liabilities to entrepreneurs in whom the entity holds participating interests	089
8. Other long-term liabilities	090
9. Deferred tax liability	091
D) SHORT - TERM LIABILITIES (094 to 105)	092
1. Liabilities to related parties	093	274.543.567	338.065.216
2. Liabilities for loans, deposits etc.	094	2.393.482	60.000
3. Liabilities to banks and other financial institutions	095	7.992.303	8.418.901
4. Liabilities for received prepayments	096	66.603.095	140.794.311
5. Accounts payable	097	3.275.008	2.791.883
6. Liabilities arising from debt securities	098	104.881.026	156.532.586
	099
7. Liabilities to entrepreneurs in whom the entity holds participating interests	100
8. Liabilities to employees	101	1.155.944	1.545.060
9. Liabilities for taxes, contributions and similar fees	102	5.514.605	813.438
10. Liabilities to share - holders	103	31.703	30.963
11. Liabilities for long-term assets held for sale	104
12. Other short - term liabilities	105	82.696.401	27.078.074
E) DEFFERED SETTLEMENTS OF CHARGES AND INCOME DEFERRED TO FUTURE PERIOD	106	690.612	2.341.364
F) TOTAL - CAPITAL AND LIABILITIES (062+079+083+093+106)	107	1.209.401.587	1.230.888.836
G) OFF-BALANCE RECORDS	108	281.936.097	184.205.925
APPENDIX to balance sheet(to be filled in by entrepreneur that prepares consolidated annual financial report)
CAPITAL AND RESERVES
1. Attributed to equity holders of parent company	109
2. Attributed to minority interest	110

PROFIT AND LOSS ACCOUNT
for the period 01.01.2016. do 30.06.2016.

VIRO TVORNICA ŠEĆERA d.d.				이번 회사는 일이 사람들이 있어서 사람들이 있어 있어요.
Item		Last year		Current year
		Comulative	Quartely	Comulative	Quartely
$\mathbf{1}$ I. OPERATING REVENUE (112+113)	$\mathbf{2}$	3	4	5	6
1. Sales revenue	111	393.197.348	199.710.494	192.576,963	85.296.730
2. Other operating revenues	112	392.308.491	199.365.692	191.326.295	85.090.276
II. OPERATING EXPENSES (115+116+120+124+125+126+129+130)	113 114	888.857	344.802	1.250.668	206.454
1. Changes in value of work in progress and finished products	115	370.222.721	180.066.260	192.869.442	87.614.933
2. Material costs (117 to 119)	116	91.909.124 245.266.573	49.442.928	$-62.138.877$	$-97.760.850$
a) Raw material and material costs	117	93.858.390	113.897.677 $-232.054$	222.517.974	168.608.935
b) Costs of goods sold	118	135.547.810	105.995.206	113.198.404	109.453.850
c) Other external costs	119	15.860.373	8.134.525	92.879.967	50.097.923
3. Staff costs (121 to 123)	120	9.422.389	4.653.985	16.439.603 10.302.431	9.057.162
a) Net salaries and wages	121	5.803.500	2.871.561	6.348.711	5.354.661 3.299.201
b) Cost for taxes and contributions from salaries	122	2.242.018	1.102.018	2.447.784	1.272.748
c) Contributions on gross salaries	123	1.376.871	680.406	1.505.936	782.712
4. Depreciation	124	15.933.610	7.890.251	14.756.480	7.349.843
5. Other costs	125	5.178.492	2.888.023	5.557.773	2.900.485
6. Impairment (127+128)	126	$\Omega$		$\mathbf{0}$	$\cdot$ O
a) Impairment of long-term assets (financial assets excluded)	127
b) Impairment of short - term assets (financial assets excluded)	128
7. Provisions	129
8. Other operating costs	130	2.512.533	1.293.396	1.873.661	1.161.859
III. FINANCIAL INCOME (132 to 136)	131	9.136.727	5.779.510	8.247.682	909.976
1. Interest income, foreign exchange gains, dividends and similar income from related	132	2.792.233	1.362.858	167.869	161.641
2. Interest income, foreign exchange gains, dividends and similar income from non - related	133	6.344.494	4.416.652	7.579.813	248.335
3. Share in income from affiliated entrepreneurs and participating interests	134
4. Unrealized gains (income) from financial assets	135			500.000	500.000
5. Other financial income	136
IV. FINANCIAL EXPENSES (138 do 141)	137	8.354.520	4.546.615	10.192.254	4.206.988
1. Interest expenses, foreign exchange losses, dividends and similar expenses from related	138	927.316	766.011	2.840.963	254.714
2. Interest expenses, foreign exchange losses, dividends and similar expenses from non -	139	7.212.521	3.641.748	7.351.291	3.952.274
3. Unrealized losses (expenses) on financial assets	140
4. Other financial expenses	141	214.683	138.856
V. INCOME FROM INVESTMENT - SHARE IN PROFIT OF ASSOCIATED ENTREPRENEURS	142
VI. LOSS FROM INVESTMENT - SHARE IN LOSS OF ASSOCIATED ENTREPRENEURS	143
VII. EXTRAORDINARY - OTHER INCOME	144
VIII. EXTRAORDINARY - OTHER EXPENSES	145
IX. TOTAL INCOME (111+131+142 + 144)	146	402.334.075	205.490.004	200.824.645	86.206.706
X. TOTAL EXPENSES (114+137+143 + 145)	147	378.577.241	184.612.875	203.061.696	91.821.921
XI. PROFIT OR LOSS BEFORE TAXATION (146-147)	148	23.756.834	20.877.129	$-2.237.051$	$-5.615.215$
1. Profit before taxation (146-147)	149	23.756.834	20.877.129	$\Omega$
2. Loss before taxation (147-146) XII. PROFIT TAX	150	$\overline{0}$	$\Omega$	2.237.051	5.615.215
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151)	151
1. Profit for the period (149-151)	152	23.756.834	20.877.129	$-2.237.051$	$-5.615.215$
2. Loss for the period (151-148)	153	23.756,834	20.877.129	$\circ$
APPENDIX to P&L account (to be filled in by entrepreneur that prepares consolidated financial report)	154	$\overline{0}$	$\Omega$	2.237.051	5.615.215
XIV. PROFIT OR LOSS FOR THE PERIOD
1. Attributed to equity holders of parent company
2. Attributed to minority interest	155 156
STATEMENT OF OTHER COMPREHENSIVE INCOME (IFRS)
I. PROFIT OR LOSS FOR THE PERIOD (= 152)
II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAX (159 do 165)	157 158	23.756.834	20.877.129	$-2.237.051$	$-5.615.215$
1. Exchange differences on translation of foreign operations	159	$\mathbf 0$	0
2. Movements in revaluation reserves of long - term tangible and intangible assets	160
3. Profit or loss from reevaluation of financial assets available for sale	161
4. Gains or losses on efficient cash flow hedging	162
5. Gains or losses on efficient hedge of a net investment in foreign countries	163
6. Share in other comprehensive income / loss of associated companies	164
7. Actuarial gains / losses on defined benefit plans	165
III. TAX ON OTHER COMPREHENSIVE INCOME FOR THE PERIOD	166
IV. NET OTHER COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (158-166)	167	$\mathbf 0$	0	$\mathbf{0}$
V. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (157+167)	168	23.756.834	20.877.129	$-2.237.051$	$-5.615.215$
APPENDIX to Statement of other comprenhensive income (to be filled in by entrepreneur that prepares consolidated financial report)
VI. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD
1. Attributed to equity holders of parent company	169
2. Attributed to minority interest	170

STATEMENT OF CASH FLOWS - INDIRECT METHOD
01.01.2016 for the period do	30.06.2016
Item	AOP code	Last year	Current year
1	$\overline{\mathbf{2}}$	3	$\overline{\mathbf{4}}$
CASH FLOW FROM OPERATING ACTIVITIES
1. Profit before tax	001	23.756.834	$-2.237.051$
2. Depreciation	002	15.933.610	14.756.480
3. Increase in short term liabilities	003	127.548.134
4. Decrease in short term receivables	004		94.022.391
5. Decrease in inventories	005
6. Other increase in cash flow	006	4.991.176	6.913.640
I. Total increase in cash flow from operating activities (001 to 006)	007	172.229.754	113.455.460
1. Decrease in short term liabilities	008		11.096.165
2. Increase in short term receivables	009	78.344.871
3. Increase in inventories	010	19.915.425	74.868.436
4. Other decrease in cash flow	011	8.037.037	39.836.680
II. Total decrease in cash flow from operating activities (008 to 011)	012	106.297.333	125.801.281
A1) NET INCREASE IN CASH FLOW FROM OPERATING ACTIVITIES	013	65.932.421	$\Omega$
A2) NET DECREASE IN IN CASH FLOW FROM OPERATING ACTIVITIES	014		12.345.821
CASH FLOW FROM INVESTING ACTIVITIES
1. Cash inflows from sales of long-term tangible and intangible assets	015	3.192
2. Cash inflows from sales of equity and debt instruments	016
3. Interests receipts	017	3.192.927	134.964
4. Dividend receipts	018	40.596
5. Other cash inflows from investing activities	019	9.852.877	2.048.915
III. Total cash inflows from investing activities (015 to 019)	020	13.089.592	2.183.879
1. Cash outflow for purchase of long-term tangible and intangible assets	021	2.514.272	3.776.641
2. Cash outflow for acquisition of equity and debt financial instruments	022
3. Other cash outflow for investing activities	023	2.375.543	1.225.057
IV. Total cash outflow for investing activities (021 do 023)	024	4.889.815	5.001.698
B1) NET INCREASE IN CASH FLOW FROM INVESTING ACTIVITIES (020-024)	025	8.199.777
B2) NET DECREASE IN CASH FLOW FROM INVESTING ACTIVITIES	026		2.817.819
CASH FLOW FROM FINANCIAL ACTIVITIES
1. Cash inflow from issuing property and debt financial instruments	027
2. Proceeds from the credit principal, promissory notes, borrowings and other loans	028	29.478.521	164.228.453
3. Other proceeds from financial activities	029	189.000.000	109.528.278
V. Total cash inflows from financial activities (027 to 029)	030	218.478.521	273.756.731
1. Cash outflow for repayment of credit principal and bonds	031	78.310.976	124.085.452
2. Cash outflow for dividends paid	032
3. Cash outflow for financial lease	033	3.327.808	3.455.447
4. Cash outflow for purchase of treasury shares	034
5. Other cash outflow for financial activities	035	189.770.000	107.268.064
VI. Total cash outflow for financial activities (031 to 035)	036	271.408.784	234.808.963
C1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES	037		38.947.768
C2) NET DECREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES	038	52.930.263
Total increase in cash flow $(013 - 014 + 025 - 026 + 037 - 038)$	039	21.201.935	23.784.128
Total decrease in cash flow $(014 - 013 + 026 - 025 + 038 - 037)$	040	0
Cash and cash equivalents at the beginning of the period	041	15.100.276	7.002.279
Increase of cash and cash equivalents	042	21.201.935	23.784.128
Decrease of cash and cash equivalents	043
Cash and cash equivalents at the end of the period	044	36.302.211	30.786.407

STATEMENT OF CHANGES IN EQUITY

for the period 01.01.2016 30.06.2016 do
Item	AOP code	Last year	Current year
$\overline{\mathbf{1}}$	2 1	3 1	$\overline{4}$
1. Subscribed capital	001	249,600.060	249,600,060
2. Capital reserves	002	10.368.101	10.368.101
3. Reserves from profit	003	56.346.673	56.346.673
4. Retained earnings or accumulated loss	004	318.901.121	312.352.661
5. Profit or loss for the current year	005	$-6.548.460$	$-2.237.051$
6. Revaluation of long - term tangible assets	006
7. Revaluation of intangible assets	007
8. Revaluation of financial assets available for sale	008
9. Other revaluation	009
10. Total capital and reserves (AOP 001 do 009)	010	628.667.495	626.430.444
11. Currency gains and losses arising from net investement in foreign operations	011
12. Current and deferred taxes (part)
13. Cash flow hedging	013
14. Changes in accounting policy	014
15. Correction of significant errors in prior period	015
16. Other changes of capital	016
17. Total increase or decrease in capital (AOP 011 do 016)	017	$\Omega$
17 a. Attributed to equity holders of parent company
	018
17 b. Attributed to minority interest	019