Viro Tvornica ŠEĆERA d.d.

Quarterly Report • Apr 28, 2017

STATEMENT OF PERSON RESPONSIBLE FOR PRODUCTION OF THE CONSOLIDATED REPORT FOR 1Q 2017

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-III 2017, 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 April 26, 2017

RESPONSIBLE PERSON:

PRESIDENT OF THE MANAGEMENT BOARD TVORNICA ŠEĆERA d.d. 7

Željko Zadro, dipl.oec.

MEMBER OF THE MAMAGEMENT BOARD

MEMBER OF THE MANAGEMENT BOARD

Darko Krstić, dipl.oec

Ivo Rešić, mr.sc.

Appendix 1 Reporting period: 01.01.2017. 31.03.2017. t٥
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.
ZAGREB Postal code and place 10000
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 Number of employees 21	464
(at quarter end) NKD/NWC code: Consolidated statement YES	1081
Subsidiaries subject to consolidation (according to IFRS): Registration number:
ŠEĆERANA 63, ŽUPANJA SLADORANA d.o.o. 03307484
SLAVONIJA ŽUPANJA d.d. J.J.STROSSMAYERA 65, ŽUPANJA 01841009
ŠEĆERANA 63, ŽUPANJA VIRO-KOOPERACIJA d.o.o. 02835398
Book keeping service:
Contact person: DRAGIĆ NEVENA
(fill in only surname and name of contact person) Fascimile: 033840103 Phone number: 033840117
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 2. Statement of responsible persons for preparation of financial statements 3. Report of the Management Board on position of the Company

TVORNIGA SCERA d.d. 7 en
Geboorte

(signed by authorised person for representation)

BALANCE SHEET
as at 131.03.2017.

Item	AOP code	Last year (net)	Current year (net)
a	$\overline{2}$	3	$\overline{A}$
ASSETS
A) RECEIVABLES FOR SUBSCRIBED BUT NOT PAID-IN CAPITAL B) LONG-TERM ASSETS (003+010+020+029+033)	001
I. INTANGIBLE ASSETS (004 to 009)	002	543.336.279	530.829.121
1. Assets development	003 004	769.909	681.384
2. Concessions, patents, licences fees, trade and service marks, software and other rights	005	769.909	681.384
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	536.749.935	524.359.528
1. Land	011	38.540.921	38.540.921
2. Buildings	012	228.037.294	224.676.837
3. Plant and equipment	013	194.768.612	184.916.914
4. Tools, facility inventory and transport assets 5. Biological assets	014	2.712.606	2.531.603
6. Prepayments for tangible assets	015
7. Tangible assets in progress	016 017	34.576.964	34.308.562
8. Other tangible assets	018	35.993.969 44.900	37.302.492 44.900
9. Investments in buildings	019	2.074.669	2.037.299
III. LONG-TERM FINANCIAL ASSETS (021 to 028)	020	5.226.520	5.198.294
1. Investments (shares) with related parties	021	900.000	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	910.606	921.115
6. Loans, deposits and similar assets	026	3.415.914	3.377.179
7. Other long - term financial assets	027
8. Investments accounted by equity method	028
IV. RECEIVABLES (030 to 032)	029	589.915	589.915
1. Receivables from related parties 2. Receivables from based on trade loans	030
3. Other receivables	031
V. DEFERRED TAX ASSETS	032 033	589.915	589.915
C) SHORT TERM ASSETS (035+043+050+058)	034	928,099.253	797.864.037
I. INVENTORIES (036 to 042)	035	635.711.354	592.641.749
1. Raw-material and supplies	036	76.486.835	78.789.554
2. Work in progress	037		28.972.194
3. Finished goods	038	373.566.269	286.756.101
4. Merchandise	039	134.836.805	135.406.821
5. Prepayments for inventories	040	50.821.445	62.717.079
6. Long - term assets held for sales	041
7. Biological assets	042
II. RECEIVABLES (044 to 049)	043	241.144.333	174.080.658
1. Receivables from related parties 2. Accounts receivable	044	2.422.079	2.142.499
3. Receivables from participating parties	045	173.217.676	161.661.364
4. Receivables from employees and members of related parties	046 047	5.785
5. Receivables from government and other institutions	048	64.791.695	5.843 9.565.595
6. Other receivables	049	707.098	705.357
III. SHORT TERM FINANCIAL ASSETS (051 to 057)	050	23.373.920	16.205.294
1. Shares (stocks) in related parties	051
2. Loans given to related parties	052		2.502.961
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	14.000.408	12.832.733
7. Other financial assets	057	9.373.512	869.600
IV. CASH AT BANK AND IN CASHIER	058	27.869.646	14.936.336
D) PREPAID EXPENSES AND ACCRUED REVENUE E) TOTAL ASSETS (001+002+034+059)	059	11.332.940	8.290.058
F) OFF-BALANCE RECORDS	060 061	1.482.768.472 1.739.081.455	1.336.983.216 1.680.825.649

1 $\overline{2}$ $\mathbf{3}$ 4 LIABILITIES AND CAPITAL A) CAPITAL AND RESERVES (063+064+065+071+072+075+078) 479.530.197 062 488.142.166 I. SUBSCRIBED CAPITAL 063 249.600.060 249.600.060 II. CAPITAL RESERVES 10,368,101 10.368.101 064 III.RESERVES FROM PROFIT (066+067-068+069+070) 56.410.827 065 56.410.827 1. Reserves prescribed by low 12.525.652 12.525.652 066 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 18.505 18.505 IV. REVALUATION RESERVES 071 V. RETAINED EARNINGS OR ACCUMULATED LOSS (073-074) 99.270.607 155.510.045 072 1. Retained earnings 99.270.607 155.510.045 073 2. Accumulated loss 074 VI. PROFIT/LOSS FOR THE CURRENT YEAR (076-077) 9.916.970 075 57.514.007 1. Profit for the current year 076 9.916.970 57.514.007 2. Loss for the current year 077 IX. MINORITY INTERESTS 078 6.336.163 6.366.595 B) PROVISIONS (080 to 082) 453.209 079 453.209 1. Provisions for pensions, severance pay, and similar liabilities 080 2. Reserves for tax liabilities 081 3. Other reserves 453.209 082 453.209 C) LONG - TERM LIABILITIES (084 to 092) 222.205.126 083 243,460.737 1. Liabilities to related parties 084 2. Liabilities for loans, deposits etc. 085 1.936.506 1.772.825 3. Liabilities to banks and other financial institutions 086 241.447.754 220.355.824 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 76.477 76.477 9. Deferred tax liability 092 D) SHORT - TERM LIABILITIES (094 to 105) 623.871.938 093 755.547.863 1. Liabilities to related parties 094 31.078 35.000 2. Liabilities for loans, deposits etc. 6.477.169 12.921.646 095 3. Liabilities to banks and other financial institutions 096 218.113.260 202.505.024 4. Liabilities for received prepayments 097 1.675.462 5.189.022 5. Accounts payable 098 419.205.766 269.778.794 6. Liabilities arising from debt securities 099 7. Liabilities to entrepreneurs in whom the entity holds participating interests 100 8. Liabilities to employees 101 3.153.292 3.460.423 9. Liabilities for taxes, contributions and similar fees 102 4.916.880 7.660.374 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 105 111.103.830 113.130.855 E) DEFFERED SETTLEMENTS OF CHARGES AND INCOME DEFERRED TO FUTURE PERIOD 3.776.466 2.310.777 106 F) TOTAL - CAPITAL AND LIABILITIES (062+079+083+093+106) 107 1.482.768.472 1.336.983.216 G) OFF-BALANCE RECORDS 108 1.739.081.455 1.680.825.649 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 473.163.602 481.806.003 109	Item	AOP code	Last year (net)	Current year (net)
	2. Attributed to minority interest	110	6.366.595	6.336.163

PROFIT AND LOSS ACCOUNT
for the period 01.01.2017. do 31.03.2017.

,
Item	AOP code	Last year		Current year
$\ddot{\mathcal{A}}$	$\boldsymbol{2}$	Comulative $\overline{\mathbf{3}}$	Quartely á.	Comulative 6	Quartely ß
I. OPERATING REVENUE (112+113)	111	181.533.305	181.533.305	190.680.268	190.680.268
1. Sales revenue	112	176.495.523	176.495.523	189.396.410	189.396.410
2. Other operating revenues	113	5.037.782	5.037.782	1.283.858	1.283.858
II. OPERATING EXPENSES (115+116+120+124+125+126+129+130)	114	181.264.039	181.264,039	191.182.329	191.182.329
1. Changes in value of work in progress and finished products	115	91.263.948	91.263.948	57.836.951	57.836.951
2. Material costs (117 to 119)	116	55.235.046	55.235.046	98.649.997	98.649.997
a) Raw material and material costs	117	8.955.225	8.955.225	8.550.205	8.550.205
b) Costs of goods sold	118	35.445,650	35.445.650	80.866.171	80.866.171
c) Other external costs	119	10.834.171	10.834.171	9.233.621	9.233.621
3. Staff costs (121 to 123)	120	12,330.091	12.330.091	12.527.642	12.527.642
a) Net salaries and wages b) Cost for taxes and contributions from salaries	121	7.653.000	7.653.000	7.953.131	7.953.131
c) Contributions on gross salaries	122 123	2.879.339	2.879.339	2.766.406	2.766.406
4. Depreciation	124	1.797.752 14.955.290	1.797.752 14.955.290	1.808.105 13.655.653	1.808.105 13.655.653
5. Other costs	125	6.243.991	6.243.991	6.525.042	6.525.042
6. Impairment (127+128)	126	55.218	55.218	$\mathbf 0$	0
a) Impairment of long-term assets (financial assets excluded)	127
b) Impairment of short - term assets (financial assets excluded)	128	55.218	55.218
7. Provisions	129
8. Other operating costs	130	1.180.455	1.180.455	1.987.044	1.987.044
III. FINANCIAL INCOME (132 to 136)	131	8.418.000	8.418.000	17.299.924	17.299.924
1. Interest income, foreign exchange gains, dividends and similar income from related parties povezanim poduzetnicima	132	1.984	1.984	21.644	21.644
2. Interest income, foreign exchange gains, dividends and similar income from non - related	133	8.400.971	8.400.971	9.899.515	9.899.515
3. Share in income from affiliated entrepreneurs and participating interests	134
4. Unrealized gains (income) from financial assets	135
5. Other financial income	136	15.045	15.045	7.378.765	7.378.765
IV. FINANCIAL EXPENSES (138 do 141)	137	7.427.151	7.427.151	6.911.326	6.911.326
1. Interest expenses, foreign exchange losses, dividends and similar expenses from related	138			544.323	544,323
2. Interest expenses, foreign exchange losses, dividends and similar expenses from non -	139	7.421.758	7.421.758	6.071.903	6.071.903
3. Unrealized losses (expenses) on financial assets	140
4. Other financial expenses	141	5,393	5.393	295.100	295.100
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) X. TOTAL EXPENSES (114+137+143 + 145)	146	189.951.305	189.951.305	207.980.192	207.980.192
	147	188.691.190	188,691.190	198.093.655	198.093.655
XI. PROFIT OR LOSS BEFORE TAXATION (146-147) 1. Profit before taxation (146-147)	148	1.260.115 1.260.115	1.260.115	9.886.537	9.886.537
2. Loss before taxation (147-146)	149	0	1.260.115 $\overline{0}$	9.886.537	9.886.537
XII. PROFIT TAX	150 151	$\Omega$	0	0 $\Omega$	$\hbox{O}$ $\Omega$
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151)	152	1.260.115	1.260.115	9.886.537	9.886.537
1. Profit for the period (149-151)	153	1.260.115	1,260,115	9.886.537	9.886.537
2. Loss for the period (151-148)	154	$\circ$	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	1.223.671	1.223.671	9.916.970	9.916.970
2. Attributed to minority interest	156	36.444	36.444	$-30.433$	$-30.433$
STATEMENT OF OTHER COMPREHENSIVE INCOME (IFRS)
I. PROFIT OR LOSS FOR THE PERIOD (= 152)	157	1.260.115	1.260.115	9,886.537	9.886.537
II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAX (159 do 165)	158	0	$\mathbf 0$	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 5. Gains or losses on efficient hedge of a net investment in foreign countries	162
	163
6. Share in other comprehensive income / loss of associated companies 7. Actuarial gains / losses on defined benefit plans	164
III. TAX ON OTHER COMPREHENSIVE INCOME FOR THE PERIOD	165
IV. NET OTHER COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (158-166)	166 167	$\mathbf 0$	$\Omega$	0
V. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (157+167)	168	1.260.115	1.260.115	9.886.537	9.886.537
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	1.223.671	1.223.671	9.916,970	9.916.970
2. Attributed to minority interest	170	36.444	36.444	$-30.433$	$-30.433$

for the period	01.01.2017	do	31.03.2017
Item			AOP	Last year	Current year
code и $\overline{2}$		$\overline{3}$	4.
CASH FLOW FROM OPERATING ACTIVITIES
1. Profit before tax			001	1.260.115	9,886,537
2. Depreciation			002	14.955.290	13.655.653
3. Increase in short term liabilities			003
4. Decrease in short term receivables			004	87.938.734	132,130.268
5. Decrease in inventories			005	71.978.298	65.718.986
6. Other increase in cash flow			006	6.543.523	1.858.159
I. Total increase in cash flow from operating activities (001 to 006)			007	182.675.960	223.249.603
1. Decrease in short term liabilities			008	167.408.088	211.595.113
2. Increase in short term receivables			009
3. Increase in inventories			010		23.923.950
4. Other decrease in cash flow			011	5.605.974	62.137.748
II. Total decrease in cash flow from operating activities (008 to 011)			012	173.014.062	297.656.811
A1) NET INCREASE IN CASH FLOW FROM OPERATING ACTIVITIES			013	9.661.898
A2) NET DECREASE IN IN CASH FLOW FROM OPERATING ACTIVITIES			014	$\mathbf{0}$	74.407.208
CASH FLOW FROM INVESTING ACTIVITIES
1. Cash inflows from sales of long-term tangible and intangible assets			015		58.333
2. Cash inflows from sales of equity and debt instruments			016
3. Interests receipts			017	100.504	116.003
4. Dividend receipts			018
5. Other cash inflows from investing activities			019		1.779.973
III. Total cash inflows from investing activities (015 to 019)			020	100.504	1.954.309
1. Cash outflow for purchase of long-term tangible and intangible assets			021	2.382.603	1.235.055
2. Cash outflow for acquisition of equity and debt financial instruments			022
3. Other cash outflow for investing activities			023	524.171	15.722
IV. Total cash outflow for investing activities (021 do 023)			024	2.906.774	1.250.777
B1) NET INCREASE IN CASH FLOW FROM INVESTING ACTIVITIES (020-024)			025	0	703.532
B2) NET DECREASE IN CASH FLOW FROM INVESTING ACTIVITIES			026	2.806.270
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	71.499.768	149.578.861
3. Other proceeds from financial activities			029	25.906.110
V. Total cash inflows from financial activities (027 to 029)			030	97.405.878	149.578.861
1. Cash outflow for repayment of credit principal and bonds			031	89.801.317	87.227.081
2. Cash outflow for dividends paid			032
3. Cash outflow for financial lease			033	1.709.024	872.338
4. Cash outflow for purchase of treasury shares			034
5. Other cash outflow for financial activities			035	27.346.967	709.076
VI. Total cash outflow for financial activities (031 to 035)			036	118.857.308	88.808.495
C1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES			037	$\Omega$	60.770.366
C2) NET DECREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES			038	21.451.430
Total increase in cash flow (013 - 014 + 025 - 026 + 037 - 038)			039
Total decrease in cash flow $(014 - 013 + 026 - 025 + 038 - 037)$			040	14.595.802	12.933.310
Cash and cash equivalents at the beginning of the period			041	36.849.204	27.869.646
Increase of cash and cash equivalents			042	0
Decrease of cash and cash equivalents			043	14.595.802	12.933.310
Cash and cash equivalents at the end of the period			044	22.253.402	14.936.336

STATEMENT OF CASH FLOWS - INDIRECT METHOD

for the period 31.03.2017 01.01.2017 do
Item	AOP code	Last year	Current year
1	$\mathbf{2}$	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	56.410.827	56.410.827
4. Retained earnings or accumulated loss	004	99.270.607	155.510.045
5. Profit or loss for the current year	005	57.514.007	9.916.970
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	473.163.602	481,806,003
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	473.163.602	481.806.003
17 b. Attributed to minority interest	019	6.366.595	6.336.163

STATEMENT OF CHANGES IN EQUITY

Notes

THERE WERE NO ACCOUNTING POLICY CHANGES IN RELATION TO THE ANNUAL FINANCIAL REPORT FOR YEAR 2016.