Viro Tvornica ŠEĆERA d.d.

Audit Report / Information • Jul 30, 2018

STATEMENT OF PERSON RESPONSIBLE FOR PRODUCTION OF THE CONSOLIDATED REPORT FOR 20 2018

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 d.d., Zagreb and its subsidiaries for the period I-VI 2018, 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 chich the Group is exposed.

In Zagreb, on July 26, 2018

RESPONSIBLE PERSON:

PRESIDENT OF THE MANAGEMENT BOARD

Željko Zadro, dipl.oec.

TVORNICA ŠEĆERA d.d.
ZAGREB

MEMBER OF THE MANAGEMENT BOARD

MEMBER OF THE MANAGEMENT BOARD

Ivo Rešić, mr.sc.

Darko Krstić, dipl.oec

Appendix 1 Reporting period:		01.01.2018. to	30.06.2018.
		Quarterly Financial Report - TFI-POD
Registration number (MB)	01650971
Identification number of subject (MBS)	010049135
Personal identification number	04525204420
(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: info@secerana.hr
Internet address: www.secerana.hr
Code and name of comune/town 133	ZAGREB
Code and county name 21	GRAD ZAGREB		Number of employees	480
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
	VIRO BH d.o.o.	HRVATSKIH BRANITELJA 21, GRUDE, BIH	64-01-0029-17
Book keeping service:
Contact person: DRAGIĆ 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 730.06.2018.

Item	AOP code	Last year (net)	Current year (net)
$\mathbf{1}$	$\overline{2}$	3	4
ASSETS
A) RECEIVABLES FOR SUBSCRIBED BUT NOT PAID-IN CAPITAL	001
B) LONG-TERM ASSETS (003+010+020+029+033)	002	520.812.391	499.225.554
I. INTANGIBLE ASSETS (004 to 009)	003	876.085	1.693.303
1. Assets development	004		1.693.303
2. Concessions, patents, licences fees, trade and service marks, software and other rights	005	876.085
3. Goodwill	006
4. Prepayments for purchase of intangible assets	007 008
5. Intangible assets in preparation	009
6. Other intangible assets	010	515.464.345	493.094.521
II. TANGIBLE ASSETS (011 to 019)	011	38.750.891	38.750.891
1. Land	012	227.964.481	221.070.530
2. Buildings	013	183.910.605	165.327.266
3. Plant and equipment	014	2.540.528	2.392.905
4. Tools, facility inventory and transport assets	015
5. Biological assets	016	34.254.275	33.643.053
6. Prepayments for tangible assets	017	26.073.477	30.014.529
7. Tangible assets in progress	018	44.900	44.900
8. Other tangible assets		1.925.188	1.850.447
9. Investments in buildings	019	4.162.701	4.128.470
III. LONG-TERM FINANCIAL ASSETS (021 to 028)	020		900.000
1. Investments (shares) with related parties	021	900.000
2. Loans given to related parties	022
3. Participating interest (shares)	023
4. Loans to entrepreneurs in whom the entity holds participating interests	024
5. Investments in securities	025	917.258	917.107
6. Loans, deposits and similar assets	026	2.345.443	2.311.363
7. Other long - term financial assets	027
8. Investments accounted by equity method	028
IV. RECEIVABLES (030 to 032)	029	309.260	309.260
1. Receivables from related parties	030
2. Receivables from based on trade loans	031
3. Other receivables	032	309.260	309.260
V. DEFERRED TAX ASSETS	033		555.724.251
C) SHORT TERM ASSETS (035+043+050+058)	034	726.194.647	326.256.998
I. INVENTORIES (036 to 042)	035	485.469.204
1. Raw-material and supplies	036	39.465.980	42.569.146
2. Work in progress	037		51.102.244
3. Finished goods	038	406.044.319	173.002.424
4. Merchandise	039	35.008.468	52.059.335
5. Prepayments for inventories	040	4.950.437	7.523.849
6. Long - term assets held for sales	041
7. Biological assets	042
II. RECEIVABLES (044 to 049)	043	154.118.758	170.814.121
1. Receivables from related parties	044	3.271.551	6.443.907
2. Accounts receivable	045	116.506.784	146.496.860
3. Receivables from participating parties	046
4. Receivables from employees and members of related parties	047	6.663	7.627
5. Receivables from government and other institutions	048	33.569.740	13.125.526
6. Other receivables	049	764.020	4.740.201
III. SHORT TERM FINANCIAL ASSETS (051 to 057)	050	14.506.338	22.645.357
1. Shares (stocks) in related parties	051
2. Loans given to related parties	052	6.694.760	12.294.332
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	7.320.078	9.709.025
7. Other financial assets	057	491.500	642.000
IV. CASH AT BANK AND IN CASHIER	058	72.100.347	36.007.775
D) PREPAID EXPENSES AND ACCRUED REVENUE	059	3.202.643	6.623.254
E) TOTAL ASSETS (001+002+034+059)	060	1.250.209.681	1.061.573.059
F) OFF-BALANCE RECORDS	061	1.448.792.590	1.373.495.360

Item	AOP code	Last year (net)	Current year (net)
$\mathbf{1}$	$\overline{2}$	3	4
LIABILITIES AND CAPITAL
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	301.180.049	298.843.778
I. SUBSCRIBED CAPITAL	063	249.600.060	249.600.060
III. CAPITAL RESERVES	064	10.368.101	10.368.101
III.RESERVES FROM PROFIT (066+067-068+069+070)	065	56.417.086	51.781.965
1. Reserves prescribed by low	066	12.532.960	12.532.959
2. Reserves for treasury shares	067	43.866.670	39.231.550
3. Treasury stocks and shares (deduction)	068
4. Statutory reserves	069
5. Other reserves	070	17.456	17.456
IV. REVALUATION RESERVES	071
V. RETAINED EARNINGS OR ACCUMULATED LOSS (073-074)	072	155.502.891	$-20.911.014$
1. Retained earnings	073	155.502.891
2. Accumulated loss	074		20.911.014
VI. PROFIT/LOSS FOR THE CURRENT YEAR (076-077)	075	-176.840.330	1.783.348
1. Profit for the current year	076		1.783.348
2. Loss for the current year	077	176.840.330
IX. MINORITY INTERESTS	078	6.132.241	6.221.318
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	169.068.573	131.703.236
1. Liabilities to related parties	084
2. Liabilities for loans, deposits etc.	085	945.496	861.998
3. Liabilities to banks and other financial institutions	086	168.123.077	130.841.238
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
9. Deferred tax liability	092
D) SHORT - TERM LIABILITIES (094 to 105)	093	763.877.291	615.610.058
1. Liabilities to related parties	094	2.175	109.728
2. Liabilities for loans, deposits etc.	095	13.307.340	16.787.922
3. Liabilities to banks and other financial institutions	096	374.102.814	469.159.822
4. Liabilities for received prepayments	097	21.271.550	21.950.422
5. Accounts payable	098	306.020.326	84.273.949
6. Liabilities arising from debt securities	099
7. Liabilities to entrepreneurs in whom the entity holds participating interests	100
8. Liabilities to employees	101	3.379.307	3.095.419
9. Liabilities for taxes, contributions and similar fees	102	7.991.230	16.934.956
10. Liabilities to share - holders	103	30.963	30.963
11. Liabilities for long-term assets held for sale	104
12. Other short - term liabilities	105	37.771.586	3.266.877
E) DEFFERED SETTLEMENTS OF CHARGES AND INCOME DEFERRED TO FUTURE PERIOD	106	15.630.559	14.962.778
F) TOTAL - CAPITAL AND LIABILITIES (062+079+083+093+106) G) OFF-BALANCE RECORDS	107 108	1.250.209.681 1.448.792.590	1.061.573.059 1.373.495.360
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	295.047.808	292.622.460
2. Attributed to minority interest	110	6.132.241	6.221.318

PROFIT AND LOSS ACCOUNT
for the period 01.01.2018. do 30.06.2018.

Item	AOP code		Last year		Current year
1	$\overline{2}$	Comulative $\overline{\mathbf{3}}$	Quartely $\overline{\mathbf{4}}$	Comulative 5	Quartely 6
I. OPERATING REVENUE (112+113)	111	533.665.040	342.984.772	384.749.973	166.037.624
1. Sales revenue	112	530.410.476	341.014.066	372.990.572	154.726.983
2. Other operating revenues	113	3.254.564	1.970.706	11.759.401	11.310.641
II. OPERATING EXPENSES (115+116+120+124+125+126+129+130)	114	528.404.862	337.222.533	413.376.618	181.507.333
1. Changes in value of work in progress and finished products	115	70.017.289	12.180.338	184.878.773	97.196.647
2. Material costs (117 to 119)	116	386.120.026	287.470.029	164.950.352	50.859.647
a) Raw material and material costs	117	156.268.637	147.718.432	18.803.874	10.715.521
b) Costs of goods sold	118	203.329.908	122.463.737	116.438.504	25.891.668
c) Other external costs	119	26.521.481	17.287.860	29.707.974	14.252.458
3. Staff costs (121 to 123)	120	26.445.418	13.917.776	25.273.662	12.764.268
a) Net salaries and wages	121	16.704.069	8.750.938	16.030.272	8.078.334
b) Cost for taxes and contributions from salaries	122	5.946.324	3.179.918	5.668.747	2.897.565
c) Contributions on gross salaries	123	3.795.025	1.986.920	3.574.643	1.788.369
4. Depreciation	124	27.484.085	13.828.432	26.409.341	13.139.547 4.323.583
5. Other costs	125	14.069.477	7.544.435	7.965.407 $\mathbf 0$	$\mathbf{0}$
6. Impairment (127+128)	126
a) Impairment of long-term assets (financial assets excluded)	127 128
b) Impairment of short - term assets (financial assets excluded) 7. Provisions	129
	130	4.268.567	2.281.523	3.899.083	3.223.641
8. Other operating costs	131	19.962.173	2.662.249	46.674.513	17.356.626
III. FINANCIAL INCOME (132 to 136)
1. Interest income, foreign exchange gains, dividends and similar income from related parties povezanim poduzetnicima	132	85.562	63.918	300.266	179.515
2. Interest income, foreign exchange gains, dividends and similar income from non - related	133	12.482.509	2.582.994	7.021.847	3.126.603
3. Share in income from affiliated entrepreneurs and participating interests	134
4. Unrealized gains (income) from financial assets	135			150.500	150.500
5. Other financial income	136	7.394.102	15.337	39.201.900	13.900.008
IV. FINANCIAL EXPENSES (138 do 141)	137	16.611.262	9.699.936	16.175.443	7.943.582
1. Interest expenses, foreign exchange losses, dividends and similar expenses from related	138	689.048	144.725	697.678	321.332
2. Interest expenses, foreign exchange losses, dividends and similar expenses from non -	139	15.325.282	9.253.379	15.477.765	7.622.250
3. Unrealized losses (expenses) on financial assets	140
4. Other financial expenses	141	596.932	301.832
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	553.627.213	345.647.021	431.424.486	183.394.250
X. TOTAL EXPENSES (114+137+143 + 145)	147	545.016.124	346.922.469	429.552.061	189.450.915
XI. PROFIT OR LOSS BEFORE TAXATION (146-147)	148	8.611.089	$-1.275.448$	1.872.425	$-6.056.665$
1. Profit before taxation (146-147)	149	8.611.089	$\circ$	1.872.425	$\mathbf{0}$
2. Loss before taxation (147-146)	150	$\circ$	1,275,448	$\circ$	6.056.665
XII. PROFIT TAX	151	$\circ$	$\circ$	$\circ$	$\mathbf{0}$
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151)	152	8.611.089	$-1.275.448$	1.872.425	$-6.056.665$
1. Profit for the period (149-151)	153	8.611.089		1.872.425	$\circ$
2. Loss for the period (151-148)	154	$\circ$	1.275.448	$\circ$	6.056.665
APPENDIX to P&L account (to be filled in by entrepreneur that prepares consolidated financial report)
XIV. PROFIT OR LOSS FOR THE PERIOD		8.695.095	$-1.221.875$	1.783.348	$-6.169.315$
1. Attributed to equity holders of parent company	155 156	$-84.006$	$-53.573$	89.077	112.650
2. Attributed to minority interest
STATEMENT OF OTHER COMPREHENSIVE INCOME (IFRS)	157	8.611.089	$-1.275.448$	1.872.425	$-6.056.665$
I. PROFIT OR LOSS FOR THE PERIOD (= 152) II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAX (159 do 165)	158	$\mathbf{0}$		$\mathbf{0}$	$\mathbf{0}$
	159
1. Exchange differences on translation of foreign operations 2. Movements in revaluation reserves of long - term tangible and intangible assets	160
	161
3. Profit or loss from reevaluation of financial assets available for sale	162
4. Gains or losses on efficient cash flow hedging 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
	165
7. Actuarial gains / losses on defined benefit plans	166
III. TAX ON OTHER COMPREHENSIVE INCOME FOR THE PERIOD	167	0	$\bf{0}$	$\mathbf 0$	$\mathbf{0}$
IV. NET OTHER COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (158-166) V. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (157+167)	168	8.611.089	$-1.275.448$	1.872.425	$-6.056.665$
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	8.695.095	$-1.221.875$	1.783.348	$-6.169.315$
2 Attributed to minority interest	170	$-84.006$	$-53.573$	89.077	112.650

for the period	1.1.2018	do	30.6.2018
Item			AOP code	Last year	Current year
$\overline{\mathbf{1}}$			$\overline{2}$	3	4
CASH FLOW FROM OPERATING ACTIVITIES
1. Profit before tax			001	8.611.089	1.872.425
2. Depreciation			002	27.484.085	26.409.341
3. Increase in short term liabilities			003
4. Decrease in short term receivables			004	237.368
5. Decrease in inventories			005	65.290.476	161.882.167
6. Other increase in cash flow			006	3.224.336	200.216
I. Total increase in cash flow from operating activities (001 to 006)			007	104.847.354	190.364.149
1. Decrease in short term liabilities			008	200.405.237	244.928.840
2. Increase in short term receivables			009		19.484.787
3. Increase in inventories			010	15.665.599	2.351.733
4. Other decrease in cash flow			011		18.042.931
II. Total decrease in cash flow from operating activities (008 to 011)			012	216.070.836	284.808.291
A1) NET INCREASE IN CASH FLOW FROM OPERATING ACTIVITIES			013	0
A2) NET DECREASE IN IN CASH FLOW FROM OPERATING ACTIVITIES			014	111.223.482	94.444.142
CASH FLOW FROM INVESTING ACTIVITIES
1. Cash inflows from sales of long-term tangible and intangible assets			015	81.751	28.955
2. Cash inflows from sales of equity and debt instruments			016
3. Interests receipts			017	562.607	5.102.187
4. Dividend receipts			018		75.390
5. Other cash inflows from investing activities			019	20.391.298	170.655
III. Total cash inflows from investing activities (015 to 019)			020	21.035.656	5.377.187
1. Cash outflow for purchase of long-term tangible and intangible assets			021	5.656.917	4.885.781
2. Cash outflow for acquisition of equity and debt financial instruments			022
3. Other cash outflow for investing activities			023	28.663	166.828
IV. Total cash outflow for investing activities (021 do 023)			024	5.685.580	5.052.609
B1) NET INCREASE IN CASH FLOW FROM INVESTING ACTIVITIES (020-024)			025	15.350.076	324.578
B2) NET DECREASE IN CASH FLOW FROM INVESTING ACTIVITIES			026	$\mathbf 0$	0
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	249.436.142	337.587.438
3. Other proceeds from financial activities			029	8.000.000	5.500.000
V. Total cash inflows from financial activities (027 to 029)			030	257.436.142	343.087.438
1. Cash outflow for repayment of credit principal and bonds			031	185.195.292	266.493.514
2. Cash outflow for dividends paid			032
3. Cash outflow for financial lease			033	1.804.931	410.912
4. Cash outflow for purchase of treasury shares			034		4.635.120
5. Other cash outflow for financial activities			035	644.662	13.520.900
VI. Total cash outflow for financial activities (031 to 035)			036	187.644.885	285.060.446
C1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES			037	69.791.257	58.026.992
C2) NET DECREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES			038	0
Total increase in cash flow (013 - 014 + 025 - 026 + 037 - 038)			039
Total decrease in cash flow $(014 - 013 + 026 - 025 + 038 - 037)$			040	26.082.149	36.092.572
Cash and cash equivalents at the beginning of the period			041	27.869.646	72.100.347
Increase of cash and cash equivalents			042	0
Decrease of cash and cash equivalents			043	26.082.149	36.092.572
Cash and cash equivalents at the end of the period			044	1.787.497	36.007.775

STATEMENT OF CASH FLOWS - INDIRECT METHOD

ivi unu pulluu uv
Item	AOP code	Last year	Current year
$\mathbf{1}$		$3\overline{3}$	$\overline{a}$
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	56.417.086	51.781.965
4. Retained earnings or accumulated loss	004	155.502.891	$-20.911.014$
5. Profit or loss for the current year	005	$-176.840.330$	1.783.348
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	295.047.808	292.622.460
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	$\circ$	0
17 a. Attributed to equity holders of parent company	018	295.047.808	292.622.460
17 b. Attributed to minority interest	019	6.132.241	6.221.318

STATEMENT OF CHANGES IN EQUITY for the period 1.1.2018 do 30.6.2018