Viro Tvornica ŠEĆERA d.d.

Annual / Quarterly Financial Statement • Oct 28, 2016

STATEMENT OF PERSON RESPONSIBLE FOR PRODUCTION OF THE CONSOLIDATED REPORT FOR 30 2016

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

• the set of consolidated financial reports of VIRO TVORNICA ŠEĆERA $\overline{\phantom{0}}$ d.d., Zagreb and its subsidiaries for the period I-IX 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 Group.
• The Management report contains a true overview of business results and position of the Group, with a description of the most significant risks and uncertanties to which the Group is exposed.

In Zagreb, on October 26, 2016

RESPONSIBLE PERSON

PRESIDENT OF THE MANAGEMENT BOAR TVORNICA ŠEĆERA d.d. Željko Zadro, dipl.oec.

Appendix 1 Reporting period:		01.01.2016. to	30.09.2016.
		Quarterly Financial Report - TFI-POD
Registration number (MB)	01650971
Identification number of subject (MBS)	010049135
Personal identification number (OIB)	04525204420
	Issueer company: VIRO TVORNICA ŠEĆERA d.d.
Postal code and place	10000	ZAGREB
	Street and number ULICA GRADA VUKOVARA 269 G
	E-mail address: info@secerana.hr
	Internet address: www.secerana.hr
Code and name of comune/town	ZAGREB 133
Code and county name	GRAD ZAGREB 21		Number of employees 477
Consolidated statement	YES		(at quarter end) NKD/NWC code: 1081
Subsidiaries subject to consolidation (according to IFRS):			Registration number:
	SLADORANA d.o.o.	ŠEĆERANA 63, ŽUPANJA	03307484
	SLAVONIJA ŽUPANJA d.d.	J.J.STROSSMAYERA 65, ŽUPANJA	01841009
	VIRO-KOOPERACIJA d.o.o.	ŠEĆERANA 63, ŽUPANJA	02835398
Book keeping service:
	Contact person: DRAGIC NEVENA
Phone number: 033840117	(fill in only surname and name of contact person)		Fascimile: 033840103
	E-mail address: nevena.dragic@secerana.hr
Surname and name ZADRO ŽELJKO	(authorised person for representation)
Disclosure documents:	shareholders' equity and notes to the financial statements 2. Statement of responsible persons for preparation of financial statements 3. Report of the Management Board on position of the Company	1. Financial statements (balance sheet, profit and loss account, cash flow statement, statement of changes in

(signed by authorised person for representation)

BALANCE SHEET
as at 30.09.2016.

Item		Last year (net)	Current year (net)
$\mathbf{1}$	$\overline{2}$	3 5	$\overline{4}$
ASSETS
A) RECEIVABLES FOR SUBSCRIBED BUT NOT PAID-IN CAPITAL	001
B) LONG-TERM ASSETS (003+010+020+029+033)	002	529.062.517	513,602.322
I. INTANGIBLE ASSETS (004 to 009) 1. Assets development	003	1.008.224	823.004
2. Concessions, patents, licences fees, trade and service marks, software and other rights	004 005
3. Goodwill	006	1.008.224	823.004
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	525.093.960	505.999.222
1. Land	011	38.540.921	38.540.921
2. Buildings	012	238.204.927	231.396.234
3. Plant and equipment	013	231.922.597	204.859.122
4. Tools, facility inventory and transport assets	014	3.368.260	2.852.618
5. Biological assets	015
6. Prepayments for tangible assets	016	307.627	285.876
7. Tangible assets in progress	017	10.480.578	25.907.512
8. Other tangible assets	018	44.900	44.900
9. Investments in buildings	019	2.224.150	2.112.039
III. LONG-TERM FINANCIAL ASSETS (021 to 028)	020	2.923.012	6.742.775
1. Investments (shares) with related parties	021	900.000	900.000
2. Loans given to related parties	022
3. Participating interest (shares)	023	1.320.983	1.320.983
4. Loans to entrepreneurs in whom the entity holds participating interests 5. Investments in securities	024
6. Loans, deposits and similar assets	025	60.173	60.173
7. Other long - term financial assets	026 027	641.856	4.461.619
8. Investments accounted by equity method	028
IV. RECEIVABLES (030 to 032)	029	37.321	37.321
1. Receivables from related parties	030
2. Receivables from based on trade loans	031
3. Other receivables	032	37.321	37.321
V. DEFERRED TAX ASSETS	033
C) SHORT TERM ASSETS (035+043+050+058)	034	704.103.328	749.683.213
I. INVENTORIES (036 to 042)	035	413.955.438	471,847,304
1. Raw-material and supplies	036	37.569.067	158.532.216
2. Work in progress	037		61.313.366
3. Finished goods	038	251.210.014	173.203.596
4. Merchandise	039	80.795.687	38.025.060
5. Prepayments for inventories	040	44.380.670	40.773.066
6. Long - term assets held for sales	041
7. Biological assets	042
II. RECEIVABLES (044 to 049)	043	208.388.541	214.360.762
1. Receivables from related parties 2. Accounts receivable	044	743.933	4.372.460
3. Receivables from participating parties	045	178.183.726	177.841.445
4. Receivables from employees and members of related parties	046 047
5. Receivables from government and other institutions	048	6.387 29.187.271	5.844 31.828.251
6. Other receivables	049	267.224	312.762
III. SHORT TERM FINANCIAL ASSETS (051 to 057)	050	44.910.145	50.406.875
1. Shares (stocks) in related parties	051
2. Loans given to related parties	052		4.461.448
3. Participating interests (shares)	053
4. Loans to entrepreneurs in whom the entity holds participating interests	054
5. Investments in securities	055
6. Loans, deposits, etc.	056	37.141.162	41.976.209
7. Other financial assets	057	7.768.983	3.969.218
IV. CASH AT BANK AND IN CASHIER	058	36.849.204	13.068.272
D) PREPAID EXPENSES AND ACCRUED REVENUE	059	14.121.337	3.154.112
E) TOTAL ASSETS (001+002+034+059)	060	1.247.287.182	1,266,439,647
F) OFF-BALANCE RECORDS	061	2.236.261.172	1.625.625.935

Item	AOP	Last year (net)	Current year
	code		(net)
1	$\overline{2}$	$\overline{\mathbf{3}}$	$\overline{4}$
LIABILITIES AND CAPITAL
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	421.326.312	411,674.438
II. 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	56.393.357	56.398.815
1. Reserves prescribed by low	066	12.520.931	12.526.389
2. Reserves for treasury shares	067	43.866.670	43.866.670
3. Treasury stocks and shares (deduction)	068
4. Statutory reserves	069
5. Other reserves	070	5.756	5.756
IV. REVALUATION RESERVES	071
V. RETAINED EARNINGS OR ACCUMULATED LOSS (073-074)	072	95.792.725	99.449.928
1. Retained earnings	073	95.792.725	99.449.928
2. Accumulated loss	074
VI. PROFIT/LOSS FOR THE CURRENT YEAR (076-077)	075	2.494.952	$-10.289.495$
1. Profit for the current year	076	2.494.952
2. Loss for the current year	077		10.289.495
IX. MINORITY INTERESTS	078	6.677.117	6.147.029
B) PROVISIONS (080 to 082)	079	453.209	453.209
1. Provisions for pensions, severance pay, and similar liabilities	080
2. Reserves for tax liabilities	081
3. Other reserves	082	453.209	453.209
C) LONG - TERM LIABILITIES (084 to 092)		322.078.301	262.217.004
1. Liabilities to related parties
2. Liabilities for loans, deposits etc.	084 085	4.932.877
3. Liabilities to banks and other financial institutions	086		2.672.608
4. Liabilities for received prepayments	087	316.992.469	259.391.441
5. Accounts payable
6. Liabilities arising from debt securities	088
	089 090
7. Liabilities to entrepreneurs in whom the entity holds participating interests 8. Other long-term liabilities
9. Deferred tax liability		152.955	152.955
D) SHORT - TERM LIABILITIES (094 to 105)	092
	093	502.133,908	587.635.476
1. Liabilities to related parties	094	150.000
2. Liabilities for loans, deposits etc.	095	8.595.581	7.294.058
3. Liabilities to banks and other financial institutions	096	195.181.628	204.432.194
4. Liabilities for received prepayments	097	41.478.736	3.519.974
5. Accounts payable	098	137.241.601	339.894.033
6. Liabilities arising from debt securities	099
7. Liabilities to entrepreneurs in whom the entity holds participating interests	100
8. Liabilities to employees	101	2.943.764	3.152.064
9. Liabilities for taxes, contributions and similar fees	102	11.844.700	1.741.370
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	104.666.195	27.570.820
E) DEFFERED SETTLEMENTS OF CHARGES AND INCOME DEFERRED TO FUTURE PERIOD		1.295.452	4.459.520
F) TOTAL - CAPITAL AND LIABILITIES (062+079+083+093+106)		1.247.287.182	1.266.439.647
G) OFF-BALANCE RECORDS	107 108	2.236.261.172	1.625.625.935
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	414.649.195	405.527.409
2. Attributed to minority interest	110	6.677.117	6.147.029

PROFIT AND LOSS ACCOUNT for the period 01.01.2016. do 30.09.2016.

Item	AOP code	Last year		Current year
		Comulative	Quartely	Comulative	Quartely
$\mathbf{1}$	$\overline{2}$	$\overline{\mathbf{3}}$	$\overline{\mathbf{4}}$	$5\overline{5}$	6
I. OPERATING REVENUE (112+113) 1. Sales revenue	111	713,404.466	214.205.847	545.985.725	186.974.425
2. Other operating revenues	112 113	710.090.239 3.314.227	212.325.598 1.880.249	537.863.731 8.121.994	184.709.677 2.264.748
II. OPERATING EXPENSES (115+116+120+124+125+126+129+130)	114	696.359.567	225.222.604	545.381.844	181.183.555
1. Changes in value of work in progress and finished products	115	110.706.625	$-13.967.970$	18.301.432	$-22.235.288$
2. Material costs (117 to 119)	116	477.328.754	203.867.298	422.582.139	168.874.554
a) Raw material and material costs	117	256.873.190	144.855.102	230.597.559	103.464.823
b) Costs of goods sold	118	174.039.360	38.031.696	152.881.385	51.718.147
c) Other external costs	119	46.416.204	20.980.500	39.103.195	13.691.584
3. Staff costs (121 to 123) a) Net salaries and wages	120	36.274.385	12.341.455	37.553.027	12.603.833
b) Cost for taxes and contributions from salaries	121 122	22.547.972 8.419.791	7.671.549 2.864.651	23.334.523 8.749.359	7.846.583 2.927.972
c) Contributions on gross salaries	123	5.306.622	1.805.255	5.469.145	1.829.278
4. Depreciation	124	47.531.479	15.649.710	44.554.821	14.756.452
5. Other costs	125	18.837.843	6.206.092	18.835.541	6.129.553
6. Impairment (127+128)	126	D	٠o	55.218
a) Impairment of long-term assets (financial assets excluded)	127
b) Impairment of short - term assets (financial assets excluded)	128			55.218
7. Provisions	129
8. Other operating costs III. FINANCIAL INCOME (132 to 136)	130	5.680.481	1.126.019	3.499.666	1.054.451
	131	12.161.771	2.974.411	10.686.606	1.182.389
1. Interest income, foreign exchange gains, dividends and similar income from related parties povezanim poduzetnicima	132			122.983	60.830
2. Interest income, foreign exchange gains, dividends and similar income from non - related	133	10.980.084	2.110.534	10.015.267	1.104.033
3. Share in income from affiliated entrepreneurs and participating interests	134
4. Unrealized gains (income) from financial assets	135	301.500	301.500	500.000
5. Other financial income	136	880.187	562.377	48.356	17.526
IV. FINANCIAL EXPENSES (138 do 141) 1. Interest expenses, foreign exchange losses, dividends and similar expenses from related	137	26.758.940	11.517.777	21.598.772	6.745.658
2. Interest expenses, foreign exchange losses, dividends and similar expenses from non -	138 139	22.692.804	10.379.477	21.116.651	6.268.930
3. Unrealized losses (expenses) on financial assets	140			372.500	372.500
4. Other financial expenses	141	4.066.136	1.138.300	109.621	104.228
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	725.566.237	217.180.258	556.672.331	188.156.814
X. TOTAL EXPENSES (114+137+143 + 145) XI. PROFIT OR LOSS BEFORE TAXATION (146-147)	147	723.118.507	236.740.381	566.980.616	187.929.213
1. Profit before taxation (146-147)	148 149	2,447.730 2.447.730	$-19.560.123$ 0	$-10.308.285$ O	227,601 227.601
2. Loss before taxation (147-146)	150	$\theta$	19,560,123	10.308.285
XII. PROFIT TAX	151	$\mathbf 0$	$\mathbf{0}$		$\circ$
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151)	152	2.447.730	$-19.560.123$	$-10,308,285$	227,601
1. Profit for the period (149-151)	153	2.447.730		ΰ	227.601
2. Loss for the period (151-148)	154	$\sigma$	19,560,123	10.308.285	0
APPENDIX to P&L account (to be filled in by entrepreneur that prepares consolidated financial report)
XIV. PROFIT OR LOSS FOR THE PERIOD
1. Attributed to equity holders of parent company	155	2.806.380	$-19.453.535$	$-10.289.495$	205.153
2. Attributed to minority interest STATEMENT OF OTHER COMPREHENSIVE INCOME (IFRS)	156	$-358.650$	$-106.588$	$-18.790$	22.448
I. PROFIT OR LOSS FOR THE PERIOD (= 152)	157	2.447.730	$-19.560.123$	$-10.308.285$	227.601
II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAX (159 do 165)	158		$\mathbf{0}$		0
1. Exchange differences on translation of foreign operations	159
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 IV. NET OTHER COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (158-166)	166	0	$\mathbf{0}$	0
V. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (157+167)	167 168	2.447.730	$-19.560.123$	$-10.308.285$	0 227.601
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	2.806.380	$-19.453.535$	$-10.289.495$	205.153
2. Attributed to minority interest	170	$-358.650$	$-106.588$	$-18.790$	22.448

AOP Item Last year code $\mathbf{1}$ $\mathbf{2}$ $\overline{\mathbf{3}}$ CASH FLOW FROM OPERATING ACTIVITIES 1. Profit before tax 001 2.447.730 2. Depreciation 002 47.531.479 3. Increase in short term liabilities 003 248.149.384 4. Decrease in short term receivables 004 5. Decrease in inventories 005 149.071.673 6. Other increase in cash flow 006 23.212.191 I. Total increase in cash flow from operating activities (001 to 006) 007 470.412.457 1. Decrease in short term liabilities 008 95.110.207 2. Increase in short term receivables 009 151.066.050 3. Increase in inventories 010 146.833.598 4. Other decrease in cash flow 011 6.713.507 II. Total decrease in cash flow from operating activities (008 to 011) 012 399.723.362 A1) NET INCREASE IN CASH FLOW FROM OPERATING ACTIVITIES 013 70.689.095 A2) NET DECREASE IN IN CASH FLOW FROM OPERATING ACTIVITIES 014 0 CASH FLOW FROM INVESTING ACTIVITIES 1. Cash inflows from sales of long-term tangible and intangible assets 015 3.979 2. Cash inflows from sales of equity and debt instruments 016 3. Interests receipts 017 3.264.896 4. Dividend receipts 018 40.596 5. Other cash inflows from investing activities 019 2.231.356 III. Total cash inflows from investing activities (015 to 019) 020 5.540.827 1. Cash outflow for purchase of long-term tangible and intangible assets 021 18.959.644 2. Cash outflow for acquisition of equity and debt financial instruments 022
	Current year
	$\boldsymbol{A}$
	$-10.308.285$
	44.554.821
	79.988.675
	37.667.074
	75.793.622
	10.360.265
	238.056.172
	14.737.208
	133.029.328
	47.231.023
	194.997.559
	43.058.613
	$\mathbf{0}$
	1.118.940
	331.285
	2.107.434
	3.557.659
	26.393.801
3. Other cash outflow for investing activities
023 7.034.085 IV. Total cash outflow for investing activities (021 do 023)	6.515.111
024 25.993.729 B1) NET INCREASE IN CASH FLOW FROM INVESTING ACTIVITIES (020-024)	32.908.912
025 0 B2) NET DECREASE IN CASH FLOW FROM INVESTING ACTIVITIES 026
20.452.902 CASH FLOW FROM FINANCIAL ACTIVITIES	29.351.253
1. Cash inflow from issuing property and debt financial instruments 027
2. Proceeds from the credit principal, promissory notes, borrowings and other loans 028 154.332.706
3. Other proceeds from financial activities 029 238.000.000	177.331.130 225.628.278
V. Total cash inflows from financial activities (027 to 029) 030 392.332.706	402.959.408
1. Cash outflow for repayment of credit principal and bonds 031 214.198.453	207.623.058
2. Cash outflow for dividends paid 032
3. Cash outflow for financial lease 033 4.971.220	4.961.196
4. Cash outflow for purchase of treasury shares 034
5. Other cash outflow for financial activities 035 239.071.577	227.863.446
VI. Total cash outflow for financial activities (031 to 035) 036 458.241.250	440.447.700
C1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES 037 0
C2) NET DECREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES 038 65.908.544	37.488.292
Total increase in cash flow (013 - 014 + 025 - 026 + 037 - 038) 039 0
Total decrease in cash flow $(014 - 013 + 026 - 025 + 038 - 037)$ 040 15.672.351	23.780.932
Cash and cash equivalents at the beginning of the period 041 43.319.579	36.849.204
Increase of cash and cash equivalents 042 0
Decrease of cash and cash equivalents 043 15.672.351	23.780.932
Cash and cash equivalents at the end of the period 044 27.647.228	13.068.272

STATEMENT OF CASH FLOWS - INDIRECT METHOD

for the period 30.09.2016 01.01.2016 do
Item	AOP code	Last year	Current year
$\mathbf{1}$	$\overline{2}$	3	$\overline{4}$
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	56.393.357	56.398.815
4. Retained earnings or accumulated loss	004	95.792.725	99.449.928
5. Profit or loss for the current year	005	2.494.952	$-10.289.495$
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	414.649.195	405.527.409
11. Currency gains and losses arising from net investement in foreign operations	011
12. Current and deferred taxes (part)	012
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	0	$\Omega$
17 a. Attributed to equity holders of parent company	018	414.649.195	405.527.409
17 b. Attributed to minority interest	019	6.677.117	6.147.029

STATEMENT OF CHANGES IN EQUITY

Notes

THERE WERE NO ACCOUNTING POLICY CHANGES IN RELATION TO THE ANNUAL FINANCIAL REPORT FOR YEAR 2015.