Viro Tvornica ŠEĆERA d.d.

Annual / Quarterly Financial Statement • Feb 28, 2017

STATEMENT OF PERSON RESPONSIBLE FOR PRODUCTION OF THE CONSOLIDATED REPORT FOR 40 2016

With this statement, in compliance with article 407 and 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 $\mathbf{r}$ d.d., Zagreb and its subsidiaries for the period I-XII 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 $\sim$ and position of the Group, with a description of the most significant risks and uncertanties to chich the Group is exposed.

In Zagreb, on February 27, 2017

RESPONSIBLE PERSON

PRESIDENT OF THE MANAGEMENT BOARD: Želiko Zadro, dipl.000GA ŠECERA d.d.

Appendix 1 Reporting period:	01.01.2016. to	31.12.2016.
	Quarterly Financial Report - TFI-POD
Registration number (MB) 01650971
010049135 Identification number of subject (MBS)
04525204420 Personal identification number (OIB)
Issueer company: VIRO TVORNICA ŠEĆERA d.d.
10000 Postal code and place	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 21 GRAD ZAGREB		Number of employees 472
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: DRAGIĆ NEVENA
(fill in only surname and name of contact person) Phone number: 033840117	Fascimile: 033840103
E-mail address: nevena.dragic@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

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

$\widehat{MP}$ $\mathbb{Z}_{4}$

ORNICA SECERA d.d.
ZAGREB

$\overline{1}$

(signed by authorised person for representation)

BALANCE SHEET
as at $\overline{)31.12.2016.}$

Item	AOP code	Last year (net)	Current year (net)
1	$\overline{2}$	$3\phantom{a}$	$\overline{4}$
ASSETS
A) RECEIVABLES FOR SUBSCRIBED BUT NOT PAID-IN CAPITAL	001
B) LONG-TERM ASSETS (003+010+020+029+033)	002	529.062.517	543.336.279
I. INTANGIBLE ASSETS (004 to 009)	003	1.008.224	769.909
1. Assets development	004
2. Concessions, patents, licences fees, trade and service marks, software and other rights	005	1.008.224	769.909
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	525.093.960	536.749.935
1. Land	011	38.540.921	38.540.921
2. Buildings	012	238.204.927	228.037.294
3. Plant and equipment	013	231.922.597	194.768.612
4. Tools, facility inventory and transport assets	014	3.368.260	2.712.606
5. Biological assets	015
6. Prepayments for tangible assets	016	307.627	34.576.964
7. Tangible assets in progress	017	10.480.578	35.993.969
8. Other tangible assets	018	44.900	44.900
9. Investments in buildings	019	2.224.150	2.074.669
III. LONG-TERM FINANCIAL ASSETS (021 to 028)	020	2.923.012	5.226.520
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
4. Loans to entrepreneurs in whom the entity holds participating interests	024
5. Investments in securities	025	60.173	910.606
6. Loans, deposits and similar assets	026	641.856	3.415.914
7. Other long - term financial assets	027
8. Investments accounted by equity method	028
IV. RECEIVABLES (030 to 032)	029	37.321	589.915
1. Receivables from related parties	030
2. Receivables from based on trade loans 3. Other receivables	031
V. DEFERRED TAX ASSETS	032	37.321	589.915
C) SHORT TERM ASSETS (035+043+050+058)	033
I. INVENTORIES (036 to 042)	034 035	704.103.328 413.955.438	928.099.253 635.711.354
1. Raw-material and supplies	036	37.569.067	76.486.835
2. Work in progress	037
3. Finished goods	038		373.566.269
4. Merchandise	039	251.210.014 80.795.687	134.836.805
5. Prepayments for inventories	040	44.380.670	50.821.445
6. Long - term assets held for sales	041
7. Biological assets	042
II. RECEIVABLES (044 to 049)	043	208.388.541	241.144.333
1. Receivables from related parties	044	743.933	2.422.079
2. Accounts receivable	045	178.183.726	173.217.676
3. Receivables from participating parties	046
4. Receivables from employees and members of related parties	047	6.387	5.785
5. Receivables from government and other institutions	048	29.187.271	64.791.695
6. Other receivables	049	267.224	707.098
III. SHORT TERM FINANCIAL ASSETS (051 to 057)	050	44.910.145	23.373.920
1. Shares (stocks) in related parties	051
2. Loans given to related parties	052
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	14.000.408
7. Other financial assets	057	7.768.983	9.373.512
IV. CASH AT BANK AND IN CASHIER	058	36.849.204	27.869.646
D) PREPAID EXPENSES AND ACCRUED REVENUE	059	14.121.337	11.332.940
E) TOTAL ASSETS (001+002+034+059)	060	1.247.287.182	1.482.768.472
F) OFF-BALANCE RECORDS	061	2.236.261.172	1.739.081.455

$\blacksquare$ $\overline{2}$ 3 $\overline{\mathbf{4}}$ A) CAPITAL AND RESERVES (063+064+065+071+072+075+078) 062 421.326.312 479.530.197 063 249.600.060 249.600.060 064 10.368.101 10.368.101 56.393.357 56.410.827 065 066 12.520.931 12.525.652 067 43.866.670 43.866.670 3. Treasury stocks and shares (deduction) 068 069 070 5.756 18.505 071 072 95.792.725 99.448.839 1. Retained earnings 073 99.448.839 95.792.725 074 075 2.494.952 57.514.007 1. Profit for the current year 076 2.494.952 57.514.007 2. Loss for the current year 077 078 6.188.363 6.677.117 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) 083 322.078.301 243.460.737 1. Liabilities to related parties 084 2. Liabilities for loans, deposits etc. 085 4.932.877 1.936.506 3. Liabilities to banks and other financial institutions 316.992.469 086 241.447.754 4. Liabilities for received prepayments 087 5. Accounts payable 088 6. Liabilities arising from debt securities 089 7. Liabilities to entrepreneurs in whom the entity holds participating interests 090 8. Other long-term liabilities 091 152.955 76.477 9. Deferred tax liability 092 D) SHORT - TERM LIABILITIES (094 to 105) 093 502.133.908 755.547.863 1. Liabilities to related parties 094 150.000 35.000 2. Liabilities for loans, deposits etc. 12.921.646 095 8.595.581 3. Liabilities to banks and other financial institutions 096 195.181.628 202.505.024 4. Liabilities for received prepayments 097 41.478.736 1.675.462 5. Accounts payable 098 137.241.601 419.205.766 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 3.153.292 9. Liabilities for taxes, contributions and similar fees 102 11.844.700 4.916.880 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 105 104.666.195 111.103.830 E) DEFFERED SETTLEMENTS OF CHARGES AND INCOME DEFERRED TO FUTURE PERIOD 106 1.295.452 3.776.466 F) TOTAL - CAPITAL AND LIABILITIES (062+079+083+093+106) 107 1.482.768.472 1.247.287.182	Item	AOP code	Last year (net)	Current year (net)
	LIABILITIES AND CAPITAL
	II. SUBSCRIBED CAPITAL
	III. CAPITAL RESERVES
	III.RESERVES FROM PROFIT (066+067-068+069+070)
	1. Reserves prescribed by low
	2. Reserves for treasury shares
	4. Statutory reserves
	5. Other reserves
	IV. REVALUATION RESERVES
	V. RETAINED EARNINGS OR ACCUMULATED LOSS (073-074)
	2. Accumulated loss
	VI. PROFIT/LOSS FOR THE CURRENT YEAR (076-077)
	IX. MINORITY INTERESTS
	G) OFF-BALANCE RECORDS
108 2.236.261.172 1.739.081.455 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
414.649.195 109 473.341.834 110 6.677.117 6.188.363	2. Attributed to minority interest

PROFIT AND LOSS ACCOUNT for the period 01.01.2016. do 31.12.2016.

Item		Last year		Current year
$\vert$		Comulative	Quartely	Comulative	Quartely
I. OPERATING REVENUE (112+113)	$\overline{2}$ 111	$3\phantom{.0}$ 1.179.641.843	$\overline{4}$ 466.237.377	5 1.175.314.593	6 629.328.868
1. Sales revenue	112	1.136.881.950	426.791.711	1.164.848.253	626.984.522
2. Other operating revenues	113	42.759.893	39.445.666	10.466.340	2.344.346
II. OPERATING EXPENSES (115+116+120+124+125+126+129+130)	114	1.149.864.240	453.504.673	1.096.569.697	551.187.853
1. Changes in value of work in progress and finished products	115	205.389.801
2. Material costs (117 to 119)	116		94.683.176	$-168.090.768$	-186.392.200
a) Raw material and material costs	117	791.675.974	314.347.220	1.111.580.352	688.998.213 635.895.719
b) Costs of goods sold		478.732.536 253.968.915	221.859.346	866.493.278
	118		79.929.555	188.191.649	35.310.264
c) Other external costs	119	58.974.523	12.558.319	56.895.425	17.792.230
3. Staff costs (121 to 123)	120	49.798.617	13.524.232	52.056.447	14.503.420
a) Net salaries and wages	121	30.939.647	8.391.675	32.421.036	9.086.513
b) Cost for taxes and contributions from salaries	122	11.579.217	3.159.426	12.055.312	3.305.953
c) Contributions on gross salaries	123	7.279.753	1.973.131	7.580.099	2.110.954
4. Depreciation	124	62.708.059	15.176.580	58.326.794	13.771.973
5. Other costs	125	25.214.214	6.376.371	26.097.598	7.262.057
6. Impairment (127+128)	126		$\Omega$	0	$-55.218$
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	130	15.077.575	9.397.094	16.599.274	13.099.608
III. FINANCIAL INCOME (132 to 136)	131	13.600.146	1.438.375	13.261.643	2.575.037
1. Interest income, foreign exchange gains, dividends and similar income from related parties povezanim poduzetnicima	132			62.153	$-60.830$
2. Interest income, foreign exchange gains, dividends and similar income from non - related	133	12.391.974	1.411.890	12.601.552	2.586.285
3. Share in income from affiliated entrepreneurs and participating interests	134
4. Unrealized gains (income) from financial assets	135	311.854	10.354	535.190	35.190
5. Other financial income	136	896.318	16.131	62.748	14.392
IV. FINANCIAL EXPENSES (138 do 141)	137	40.857.884	14.098.944	34.471.814	12.873.042
1. Interest expenses, foreign exchange losses, dividends and similar expenses from related	138
2. Interest expenses, foreign exchange losses, dividends and similar expenses from non -	139	36.002.068	13.309.264	32.154.753	11.038.102
3. Unrealized losses (expenses) on financial assets	140	311.400	311.400	1.020.990	648.490
4. Other financial expenses	141	4.544.416	478.280	1.296.071	1.186.450
INCOME FROM INVESTMENT - SHARE IN PROFIT OF ASSOCIATED ENTREPRENEURS V.	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	1.193.241.989	467.675.752	1.188.576.236	631.903.905
X. TOTAL EXPENSES (114+137+143 + 145)	147	1.190.722.124	467.603.617	1.131.041.511	564.060.895
XI. PROFIT OR LOSS BEFORE TAXATION (146-147)	148	2.519.865	72.135	57.534.725	67.843.010
1. Profit before taxation (146-147)	149	2.519.865	72.135	57.534.725	67.843.010
2. Loss before taxation (147-146)	150	$\Omega$	$\Omega$	$\Omega$	$\Omega$
XII. PROFIT TAX	151	$\mathbf 0$		0	$\mathbf 0$
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151)	152	2.519.865	72.135	57.534.725	67.843.010
1. Profit for the period (149-151)	153	2.519.865	72.135	57.534.725	67.843.010
2. Loss for the period (151-148)	154	$\mathbf 0$	$\circ$	$\circ$	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	2.494.952	$-311.428$	57.514.007	67.803.502
2. Attributed to minority interest	156	24.913	383.563	20.718	39.508
STATEMENT OF OTHER COMPREHENSIVE INCOME (IFRS)
I. PROFIT OR LOSS FOR THE PERIOD (= 152)	157	2.519.865	72.135	57.534.725	67.843.010
II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAX (159 do 165)	158
1. Exchange differences on translation of foreign operations	159
2. Movements in revaluation reserves of long - term tangible and intangible assets
3. Profit or loss from reevaluation of financial assets available for sale	160
	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	$\Omega$	0
V. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (157+167)	168	2.519.865	72.135	57.534.725	67.843.010
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	2.494.952	$-311.428$	57.514.007	67.803.502
2. Attributed to minority interest	170	24.913	383.563	20.718	39.508

i.

for the period	01.01.2016	do	31.12.2016
Item			AOP code	Last year	Current year
$\vert$ 1			$\mathbf{z}$	$\overline{\mathbf{3}}$	$\overline{4}$
CASH FLOW FROM OPERATING ACTIVITIES
1. Profit before tax			001	2.519.865	57.534.725
2. Depreciation			002	62.708.059	58.326.794
3. Increase in short term liabilities			003		275.224.166
4. Decrease in short term receivables			004
5. Decrease in inventories			005	219.939.622	34.320.046
6. Other increase in cash flow			006	12.448.887	20.748.920
I. Total increase in cash flow from operating activities (001 to 006)			007	297.616.433	446.154.651
1. Decrease in short term liabilities			008	299.466.366
2. Increase in short term receivables			009	80.454.944	29.279.296
3. Increase in inventories			010		255.419.802
4. Other decrease in cash flow			011	6.339.124	6.704.302
II. Total decrease in cash flow from operating activities (008 to 011)			012	386.260.434	291.403.400
A1) NET INCREASE IN CASH FLOW FROM OPERATING ACTIVITIES			013	0	154.751.251
A2) NET DECREASE IN IN CASH FLOW FROM OPERATING ACTIVITIES			014	88.644.001
CASH FLOW FROM INVESTING ACTIVITIES
1. Cash inflows from sales of long-term tangible and intangible assets			015	1.117.012	217.805
2. Cash inflows from sales of equity and debt instruments			016
3. Interests receipts			017	2.683.636	1.679.568
4. Dividend receipts			018	40.596	56.703
5. Other cash inflows from investing activities			019	47.991.001	34.051.783
III. Total cash inflows from investing activities (015 to 019)			020	51.832.245	36.005.859
1. Cash outflow for purchase of long-term tangible and intangible assets			021	19.072.910	69.908.838
2. Cash outflow for acquisition of equity and debt financial instruments			022
3. Other cash outflow for investing activities			023	36.288.473	6.204.350
IV. Total cash outflow for investing activities (021 do 023)			024	55.361.383	76.113.188
B1) NET INCREASE IN CASH FLOW FROM INVESTING ACTIVITIES (020-024)			025	0
B2) NET DECREASE IN CASH FLOW FROM INVESTING ACTIVITIES			026	3.529.138	40.107.329
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	856.044.582	258.582.572
3. Other proceeds from financial activities			029	378.486.323	248.625.962
V. Total cash inflows from financial activities (027 to 029)			030	1.234.530.905	507.208.534
1. Cash outflow for repayment of credit principal and bonds			031	735.573.166	346.764.139
2. Cash outflow for dividends paid			032
3. Cash outflow for financial lease			033	6.627.929	5.977.777
4. Cash outflow for purchase of treasury shares			034
5. Other cash outflow for financial activities			035	406.627.046	278.090.098
VI. Total cash outflow for financial activities (031 to 035)			036	1.148.828.141	630.832.014
C1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES			037	85.702.764
C2) NET DECREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES			038	$\mathbf{0}$	123.623.480
Total increase in cash flow (013 - 014 + 025 - 026 + 037 - 038)			039
Total decrease in cash flow $(014 - 013 + 026 - 025 + 038 - 037)$			040	6.470.375	8.979.558
Cash and cash equivalents at the beginning of the period			041	43.319.579	36.849.204
Increase of cash and cash equivalents			042
Decrease of cash and cash equivalents			043	6.470.375	8.979.558
Cash and cash equivalents at the end of the period			044	36.849.204	27.869.646

STATEMENT OF CASH FLOWS - INDIRECT METHOD

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	56.410.827
4. Retained earnings or accumulated loss	004	95.792.725	99.448.839
5. Profit or loss for the current year	005	2.494.952	57.514.007
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	473.341.834
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
17 a. Attributed to equity holders of parent company	018	414.649.195	473.341.834
17 b. Attributed to minority interest	019	6.677.117	6.188.363

STATEMENT OF CHANGES IN EQUITY for the period 01.01.2016 do 31.12.2016

Notes

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