Viro Tvornica ŠEĆERA d.d.

Interim / Quarterly Report • Jul 30, 2018

STATEMENT OF PERSON RESPONSIBLE FOR PRODUCTION OF THE THREE-MONTH REPORT FOR 1H 2018

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 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 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 23, 2018

TVORNICA ŠEĆERA d.d.

Darko Krstić, Member of the Management Board

RESPONSIBLE PERSON

PRESIDENT OF THE MANAGEMENT BOARD:

Željko Zadro, dipl.oec

Ivo Rešić, Member of the Management Board

Appendix 1 Reporting period:	1.1.2018	to	30.6.2018
	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: viro@secerana.hr
Internet address: www.secerana.hr
Code and name of comune/town ZAGREB 133
Code and county name 21 GRAD ZAGREB
Consolidated statement NO			Number of employees (at quarter end)	209
Subsidiaries subject to consolidation (according to IFRS):			NKD/NWC code:	1081
			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 2. Statement of responsible persons for preparation of financial statements 3. Report of the Management Board on position of the Company

TVORNICA ŠEĆERA d.d. 7

led by authorised person for representation)

BALANCE SHEET

as at	30.6.2018
Item		AOP code	Last year (net)	Current year (net)
$\mathbf{1}$		$\overline{2}$	3	$\overline{4}$
ASSETS
A) RECEIVABLES FOR SUBSCRIBED BUT NOT PAID-IN CAPITAL		001
B) LONG-TERM ASSETS (003+010+020+029+033) I. INTANGIBLE ASSETS (004 to 009)		002	692.483.146	669.684.879
1. Assets development		003	515.755	1.387.089
2. Concessions, patents, licences fees, trade and service marks, software and other rights		004
3. Goodwill		005	515.755	1.387.089
4. Prepayments for purchase of intangible assets		006
5. Intangible assets in preparation		007
6. Other intangible assets		008
II. TANGIBLE ASSETS (011 to 019)		009 010
1. Land		011	156.523.874	143.605.641
2. Buildings		012	5.548.592 62.595.526	5.548.592
3. Plant and equipment		013	49.960.898	59.585.115 40.721.863
4. Tools, facility inventory and transport assets		014
5. Biological assets		015
6. Prepayments for tangible assets		016	34.254.275	33.643.053
7. Tangible assets in progress		017	2.230.095	2.247.271
8. Other tangible assets		018	9.300	9.300
9. Investments in buildings		019	1.925.188	1.850.447
III. LONG-TERM FINANCIAL ASSETS (021 to 028)		020	535.443.517	524.692.149
1. Investments (shares) with related parties		021	419.833.409	419.826.568
2. Loans given to related parties		022	115.338.105	104.590.564
3. Participating interest (shares)		023
4. Loans to entrepreneurs in whom the entity holds participating interests		024
5. Investments in securities		025	13.848	13.697
6. Loans, deposits and similar assets		026	258.155	261.320
7. Other long - term financial assets		027
8. Investments accounted by equity method		028
IV. RECEIVABLES (030 to 032)		029	$\mathbf{0}$	$\mathbf{0}$
1. Receivables from related parties 2. Receivables from based on trade loans		030
3. Other receivables		031
V. DEFERRED TAX ASSETS		032
C) SHORT TERM ASSETS (035+043+050+058)		033
I. INVENTORIES (036 to 042)		034	525.589.492	512.537.907
1. Raw-material and supplies		035	168.479.068	91.116.495
2. Work in progress		036	15.746.983	16.392.755
3. Finished goods		037		28.382.407
4. Merchandise		038 039	125.761.431	2.988.839
5. Prepayments for inventories		040	22.475.298	38.505.285
6. Long - term assets held for sales		041	4.495.356	4.847.209
7. Biological assets		042
II. RECEIVABLES (044 to 049)		043	135.261.230	120.056.921
1. Receivables from related parties		044	45.106.773	15.862.620
2. Accounts receivable		045	80.332.841	87.993.388
3. Receivables from participating parties		046
4. Receivables from employees and members of related parties		047	759	3.990
5. Receivables from government and other institutions		048	9.664.925	11.970.853
6. Other receivables		049	155.932	4.226.070
III. SHORT TERM FINANCIAL ASSETS (051 to 057)		050	159.166.060	277.172.355
1. Shares (stocks) in related parties		051
2. Loans given to related parties		052	152.546.574	268.050.824
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	6.219.986	8.571.531
7. Other financial assets		057	399.500	550.000
V. CASH AT BANK AND IN CASHIER		058	62.683.134	24.192.136
D) PREPAID EXPENSES AND ACCRUED REVENUE		059	1.503.946	2.299.305
E) TOTAL ASSETS (001+002+034+059)		060	1.219.576.584	1.184.522.091
F) OFF-BALANCE RECORDS		061	120.241.416	105.885.597

$\vert$ $\overline{2}$ 3 $\overline{4}$ A) CAPITAL AND RESERVES (063+064+065+071+072+075+078) 062 562.457.426 576.941.794 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 51.711.553 1. Reserves prescribed by low 066 12.480.003 12.480.003 2. Reserves for treasury shares 067 43.866.670 39.231.550 3. Treasury stocks and shares (deduction) 068 $\Omega$ $\theta$ 4. Statutory reserves 069 5. Other reserves 070 IV. REVALUATION RESERVES 071 V. RETAINED EARNINGS OR ACCUMULATED LOSS (073-074) 072 349.584.804 246.142.592 1. Retained earnings 073 349.584.804 246.142.592 2. Accumulated loss 074 VI. PROFIT/LOSS FOR THE CURRENT YEAR (076-077) 075 $-103.442.212$ 19.119.488 1. Profit for the current year 076 19.119.488 2. Loss for the current year 077 103.442.212 IX. MINORITY INTERESTS 078 B) PROVISIONS (080 to 082) 079 $\mathbf{0}$ $\mathbf 0$ 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) 083 157.643.945 120.299.507 1. Liabilities to related parties 084 2. Liabilities for loans, deposits etc. 085 572.633 312.830 3. Liabilities to banks and other financial institutions 086 157.071.312 119.986.677 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 $\mathcal{H}$ 092 093 499.168.562 486.817.570 1. Liabilities to related parties 094 5.174.487 9.552.119 2. Liabilities for loans, deposits etc. 095 12.999.840 4.840.394 3. Liabilities to banks and other financial institutions 096 259.345.545 383.940.341 4. Liabilities for received prepayments 097 13.553.903 21.207.237 5. Accounts payable 098 162.866.591 62.290.638 6. Liabilities arising from debt securities 099 7. Liabilities to entrepreneurs in whom the entity holds participating interests 100 8. Liabilities to employees 101 1.427.626 1.370.055 9. Liabilities for taxes, contributions and similar fees 102 6.566.560 775.248 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 37.203.047 2.810.575 106 306.651 463.220 107 1.219.576.584 1.184.522.091 108 120.241.416 105.885.597 APPENDIX to balance sheet(to be filled in by entrepreneur that prepares consolidated annual financial report) 109 110	Item		Last year (net)	Current year (net)
	D) SHORT - TERM LIABILITIES (094 to 105)
	E) DEFFERED SETTLEMENTS OF CHARGES AND INCOME DEFERRED TO FUTURE PERIOD
	F) TOTAL - CAPITAL AND LIABILITIES (062+079+083+093+106)
	G) OFF-BALANCE RECORDS
	CAPITAL AND RESERVES
	1. Attributed to equity holders of parent company
	2. Attributed to minority interest

$\boldsymbol{F}$

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

VIRO TVORNICA ŠEĆERA d.d.

Item		Last year		Current year
	code	Comulative	Quartely	Comulative	Quartely
1 I. OPERATING REVENUE (112+113)	$\overline{2}$	$\mathbf{3}$	$\overline{4}$	5	$6\phantom{1}$
1. Sales revenue	111	424.674.161	246.753.193	331.656.828	132.924.617
2. Other operating revenues	112 113	423.599.945 1.074.216	246.355.560	323,490.559	124.821.432
II. OPERATING EXPENSES (115+116+120+124+125+126+129+130)	114	420.836.168	397.633 248.415.831	8.166.269	8.103.185
1. Changes in value of work in progress and finished products				346.304.382	141.543.813
i and finished products	115	82.776.461	14.610.821	97.477.363	16.255.704
2. Material costs (117 to 119)	116	305.065.170	216.931.381	218.545.922	108.827.425
a) Raw material and material costs	117	96.751.554	93.961.250	4.652.890	2.627.327
b) Costs of goods sold c) Other external costs	118	189.234.474	110.017.672	193.844.974	97.260.768
3. Staff costs (121 to 123)	119	19.079.142	12.952.459	20.048.058	8.939.330
a) Net salaries and wages	120	11.612.802	6.533.329	10.946.418	5.530.948
b) Cost for taxes and contributions from salaries	121	7.243.723	4.032.928	6.930.724	3.501.131
c) Contributions on gross salaries	122	2.726.092	1.583.439	2.494.485	1.261.122
4. Depreciation	123	1.642.987	916.962	1.521.209	768.695
5. Other costs	124	13.119.856	6.590.754	12.682.268	6.330.844
6. Impairment (127+128)	125	6.092.915	3.317.003	2.974.902	1.479.967
a) Impairment of long-term assets (financial assets excluded)	126	$\Omega$	$\Omega$	$\overline{0}$	$\overline{0}$
b) Impairment of short - term assets (financial assets excluded)	127
7. Provisions	128
8. Other operating costs	129
III. FINANCIAL INCOME (132 to 136)	130	2.168.964	432.543	3.677.509	3.118.925
1. Interest income, foreign exchange gains, dividends and similar income from related	131	20.227.531	3.473.020	46.755.085	15.125.797
parties	132	1.418.837	1.134.762	6.420.032	3.584.793
2. Interest income, foreign exchange gains, dividends and similar income from non - related parties and other entities	133	11.443.842	2.338.258	6.407.172	2.899.691
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	7.364.852		33.777.381	8.490.813
IV. FINANCIAL EXPENSES (138 do 141)	137	12.450.599	6.826.795	12.988.043	6.279.607
1. Interest expenses, foreign exchange losses, dividends and similar expenses from related parties 2. Interest expenses, foreign exchange losses, dividends and similar expenses from non -	138	3.644.741	743.112	2.990.315	1.299.796
related parties and other entities	139	8.805.858	6.083.683	9.997.728	4.979.811
3. Unrealized losses (expenses) on financial assets	140
4. Other financial expenses	141
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	444.901.692	250.226.213	378.411.913	148.050.414
X. TOTAL EXPENSES (114+137+143 + 145)	147	433.286.767	255.242.626	359.292.425	147.823.420
XI. PROFIT OR LOSS BEFORE TAXATION (146-147)	148	11.614.925	$-5.016.413$	19.119.488	226.994
1. Profit before taxation (146-147)	149	11.614.925	$\overline{0}$	19.119.488	226.994
2. Loss before taxation (147-146)	150	$\overline{0}$	5.016.413	$\mathbf 0$	$\overline{0}$
XII. PROFIT TAX	151
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151)	152	11.614.925	$-5.016.413$	19.119.488	226.994
1. Profit for the period (149-151)	153	11.614.925	$\theta$	19.119.488	226.994
2. Loss for the period (151-148)	154	$\theta$	5.016.413	$\mathcal{O}$	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. Attributed to minority interest	156
STATEMENT OF OTHER COMPREHENSIVE INCOME (IFRS)
I. PROFIT OR LOSS FOR THE PERIOD (= 152)	157	11.614.925	$-5.016.413$	19.119.488	226.994
II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAX (159 do 165)	158	$\mathbf{0}$	$\bf 0$	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
II. TAX ON OTHER COMPREHENSIVE INCOME FOR THE PERIOD	166
V. NET OTHER COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (158-166)	167	$\overline{0}$	$\overline{0}$	$\mathbf{0}$	$\mathbf{0}$
. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (157+167)	168	11.614.925	$-5.016.413$	19.119.488	226.994
APPENDIX to Statement of other comprenhensive income (to be filled in by entrepreneur that prepares consolidated financial report)
/I. 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

for the period	1.1.2018	do	30.6.2018
Item		AOP code	Last year	Current year
$\mathbf{1}$ CASH FLOW FROM OPERATING ACTIVITIES			$\overline{2}$	3	$\overline{4}$
1. Profit before tax
2. Depreciation			001	11.614.925	19.119.488
3. Increase in short term liabilities			002	13.119.856	12.682.268
4. Decrease in short term receivables			003
5. Decrease in inventories			004	12.420.244	15.204.309
6. Other increase in cash flow			005	61.744.279	77.362.573
I. Total increase in cash flow from operating activities (001 to 006)			006	2.982.679	156,569
1. Decrease in short term liabilities			007 008	101.881.983	124.525.207
2. Increase in short term receivables				118.785.088	123.677.584
3. Increase in inventories			009
4. Other decrease in cash flow			010
II. Total decrease in cash flow from operating activities (008 to 011)			011	107.146.351	127.914.126
A1) NET INCREASE IN CASH FLOW FROM OPERATING ACTIVITIES			012	225.931.439	251.591.710
AKTIVNOSTI (007-012) A2) NET DECREASE IN IN CASH FLOW FROM OPERATING ACTIVITIES			013
AKTIVNOSTI (012-007)			014	124.049.456	127.066.503
CASH FLOW FROM INVESTING ACTIVITIES
1. Cash inflows from sales of long-term tangible and intangible assets			015	76.042	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	10.196.923	10.918.196
III. Total cash inflows from investing activities (015 to 019)			020	10.835.572	16.124.728
1. Cash outflow for purchase of long-term tangible and intangible assets			021	1.174.880	664.324
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	1.203.543	831.152
B1) NET INCREASE IN CASH FLOW FROM INVESTING ACTIVITIES (020-024) B2) NET DECREASE IN CASH FLOW FROM INVESTING ACTIVITIES			025 026	9.632.029	15.293.576
AKTIVNOSTI (024-020) 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
3. Other proceeds from financial activities				182.908.500	304.325.331
V. Total cash inflows from financial activities (027 to 029)			029	8.000.000 190.908.500	5.500.000
1. Cash outflow for repayment of credit principal and bonds			030		309.825.331 217.997.370
2. Cash outflow for dividends paid			031	95.422.574
3. Cash outflow for financial lease			032
4. Cash outflow for purchase of treasury shares			033	1.804.931	410.912
			034		4.635.120
5. Other cash outflow for financial activities VI. Total cash outflow for financial activities (031 to 035)			035	500.000	13.500.000
C1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES			036	97.727.505	236.543.402
AKTIVNOSTI (030-036) C2) NET DECREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES			037	93.180.995	73.281.929
AKTIVNOSTI (036-030)			038
Total increase in cash flow $(013 - 014 + 025 - 026 + 037 - 038)$			039
Total decrease in cash flow $(014 - 013 + 026 - 025 + 038 - 037)$			040	21.236.432	38.490.998
Cash and cash equivalents at the beginning of the period			041	22.411.336	62.683.134
Increase of cash and cash equivalents			042	$\mathbf 0$	n
Decrease of cash and cash equivalents			043	21.236.432	38.490.998
Cash and cash equivalents at the end of the period			044	1.174.904	24.192.136

STATEMENT OF CHANGES IN EQUITY

for the period 1.1.2018 do 30.6.2018

Item	AOP code	Last year	Current year
$\mathbf{1}$	$\overline{2}$	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	51.711.553
4. Retained earnings or accumulated loss	004	349.584.804	246.142.592
5. Profit or loss for the current year	005	$-103.442.212$	19.119.488
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	562.457.426	576.941.794
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	$\circ$
17 a. Attributed to equity holders of parent company	018
17 b. Attributed to minority interest	019

Notes

THERE WERE NO ACCOUNTING POLICY CHANGES IN RELATION TO HTE ANNUAL FINANCIAL REPORT FOR YEAR 2017.