Viro Tvornica ŠEĆERA d.d.

Quarterly Report • Apr 28, 2017

STATEMENT OF PERSON RESPONSIBLE FOR PRODUCTION OF THE THREE-MONTH REPORT FOR 10 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 financial reports of VIRO TVORNICA SECERA d.d., Zagreb 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 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 April 28, 2017

RESPONSIBLE PERSON

TVORNICA ŠEĆERA d.d.

PRESIDENT OF THE MANAGEMENT BOARD:

Željko Zadro, dipl.oec

Ivo Rešić, Member of the Menagement Bord

Darko Krstić, Member of the Menagement Bord

Appendix 1 Reporting period:	1.1.2017 to	31.3.2017
	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.
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
GRAD ZAGREB Code and county name 21		Number of employees 196
Consolidated statement NO		(at quarter end) NKD/NWC code: 1081
Subsidiaries subject to consolidation (according to IFRS):		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

3. Report of the Management Board on position of the Company

$M.P$ D R Ç ₫ TVORNICA ŠEĆERA d.d. 4

(signed by authorised person for representation)

BALANCE SHEET
as at $\begin{array}{|c|c|} \hline 31.3.2017 \ \hline \end{array}$

Item		Last year (net)	Current year (net)
$\mathbf{1}$	$\overline{2}$	3	$\overline{4}$
ASSETS
A) RECEIVABLES FOR SUBSCRIBED BUT NOT PAID-IN CAPITAL	001	749.273.897	742.023.918
B) LONG-TERM ASSETS (003+010+020+029+033)	002 003	136.740	118,009
I. INTANGIBLE ASSETS (004 to 009) 1. Assets development	004
2. Concessions, patents, licences fees, trade and service marks, software and other rights	005	136,740	118.009
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	179.990.028	173.634.318
1. Land	011	5.548.592	5.548.592
2. Buildings	012	68.340.805	66.810.541
3. Plant and equipment	013	66.153.617	61.258.943
4. Tools, facility inventory and transport assets	014
5. Biological assets	015
6. Prepayments for tangible assets	016	34.576.964	34.308.562
7. Tangible assets in progress	017	3.286.081	3.661.081
8. Other tangible assets	018	9.300	9.300
9. Investments in buildings	019	2.074.669	2.037.299
III. LONG-TERM FINANCIAL ASSETS (021 to 028)	020	569.147.129	568.271.591
1. Investments (shares) with related parties	021	419.450.043	419.450.043
2. Loans given to related parties	022	149.216.583	148.327.870
3. Participating interest (shares)	023
4. Loans to entrepreneurs in whom the entity holds participating interests	024	3.248	13.757
5. Investments in securities	025 026	477.255	479.921
6. Loans, deposits and similar assets	027
7. Other long - term financial assets 8. Investments accounted by equity method	028
IV. RECEIVABLES (030 to 032)	029	$\bf{0}$	$\mathbf 0$
1. Receivables from related parties	030
2. Receivables from based on trade loans	031
3. Other receivables	032
V. DEFERRED TAX ASSETS	033
C) SHORT TERM ASSETS (035+043+050+058)	034	668.453.422	603.208.528
I. INVENTORIES (036 to 042)	035	434.941.674	371.062.122
1. Raw-material and supplies	036	55.191.037	57.104.070
2. Work in progress	037		14.252.490
3. Finished goods	038	213.847.092	131.428.961
4. Merchandise	039	116.054.925	110.944.187
5. Prepayments for inventories	040	49.848.620	57.332.414
6. Long - term assets held for sales	041
7. Biological assets	042
II. RECEIVABLES (044 to 049)	043	184.412.623	137.928.850
1. Receivables from related parties	044	1.259.876	18.460.843
2. Accounts receivable	045	133.612.862	111.447.040
3. Receivables from participating parties	046
4. Receivables from employees and members of related parties	047	890	844
5. Receivables from government and other institutions	048	49.421.570 117.425	7.902.698 117.425
6. Other receivables	049	26.687.789	83.755.846
III. SHORT TERM FINANCIAL ASSETS (051 to 057)	050 051
1. Shares (stocks) in related parties 2. Loans given to related parties	052	4.681.963	71.447.711
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	12.632.314	11.438.535
7. Other financial assets	057	9.373.512	869.600
IV. CASH AT BANK AND IN CASHIER	058	22.411.336	10.461.710
D) PREPAID EXPENSES AND ACCRUED REVENUE	059	5.501.947	3.961.605
E) TOTAL ASSETS (001+002+034+059)	060	1.423.229.266	1.349.194.051
F) OFF-BALANCE RECORDS	061	291.648.942	287.045.376

Item	AOP code	Last year (net)	Current year (net)
$\mathbf{1}$	$\overline{2}$	3	4
		665.899.638	682.530.976
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062
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	56.346.673
1. Reserves prescribed by low	066	12.480.003	12.480.003
2. Reserves for treasury shares	067	43.866.670	43.866.670
3. Treasury stocks and shares (deduction)	068	$\mathbf{0}$	$\mathbf{0}$
4. Statutory reserves	069
5. Other reserves	070
IV. REVALUATION RESERVES	071
V. RETAINED EARNINGS OR ACCUMULATED LOSS (073-074)	072	312.352.661	349.584.804
1. Retained earnings	073	312.352.661	349.584.804
2. Accumulated loss	074
VI. PROFIT/LOSS FOR THE CURRENT YEAR (076-077)	075	37.232.143	16.631.338
1. Profit for the current year	076	37.232.143	16.631.338
2. Loss for the current year	077
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	229.589.347	208.543.718
1. Liabilities to related parties	084
2. Liabilities for loans, deposits etc.	085	1.375.750	1.212.974
3. Liabilities to banks and other financial institutions	086	228.213.597	207.330.744
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
	091
8. Other long-term liabilities
9. Deferred tax liability	092
D) SHORT - TERM LIABILITIES (094 to 105)	093	527.558.401	457.634.957
1. Liabilities to related parties	094	30.738.212	31.078
2. Liabilities for loans, deposits etc.	095	7.443.244	6.195.972
3. Liabilities to banks and other financial institutions	096	101.174.511	137.875.130
4. Liabilities for received prepayments	097	1.302.698	4.181.605
5. Accounts payable	098	313.719.185	233.990.076
6. Liabilities arising from debt securities	099
7. Liabilities to entrepreneurs in whom the entity holds participating interests	100
8. Liabilities to employees	101	1.284.066	1.454.260
9. Liabilities for taxes, contributions and similar fees	102	2.101.273	6.255.228
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	69.764.249	67.620.645
E) DEFFERED SETTLEMENTS OF CHARGES AND INCOME DEFERRED TO FUTURE PERIOD	106	181.880	484.400
F) TOTAL - CAPITAL AND LIABILITIES (062+079+083+093+106)	107	1.423.229.266	1.349.194.051
G) OFF-BALANCE RECORDS	108	291.648.942	287.045.376
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
2. Attributed to minority interest	110

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

VIRO TVORNICA ŠEĆERA d.d.

WIND TWOINNIGHTS SECEIVE G.G. AOP Item code			Last year		Current year
		Comulative	Quartely	Comulative	Quartely
1	$\overline{2}$	3	$\overline{4}$	5	6
. OPERATING REVENUE (112+113)	111	107.280.233	107.280.233	177.920.968	177.920.968
1. Sales revenue 2. Other operating revenues	112 113	106.236.019 1.044.214	106.236.019 1.044.214	177.244.385 676.583	177.244.385 676.583
II. OPERATING EXPENSES (115+116+120+124+125+126+129+130)	114	105.254.509	105.254.509	172.420.337	172.420.337
1. Changes in value of work in progress and finished products
i and finished products	115	35.621.973	35.621.973	68.165.640	68.165.640
2. Material costs (117 to 119)	116	53.909.039	53.909.039	88.133.789	88.133.789
a) Raw material and material costs	117	3.744.554	3.744.554	2.790.304	2.790.304
b) Costs of goods sold	118	42.782.044	42.782.044 7.382.441	79.216.802	79.216.802
c) Other external costs	119 120	7.382.441 4.947.770	4.947.770	6.126.683 5.079.473	6.126.683 5,079.473
3. Staff costs (121 to 123) a) Net salaries and wages	121	3.049.510	3.049.510	3.210.795	3.210.795
b) Cost for taxes and contributions from salaries	122	1.175.036	1.175.036	1.142.653	1.142.653
c) Contributions on gross salaries	123	723.224	723.224	726.025	726.025
4. Depreciation	124	7.406.637	7.406.637	6.529.102	6.529.102
5. Other costs	125	2.657.288	2.657.288	2.775.912	2.775.912
6. Impairment (127+128)	126	0	O	$\mathbf{0}$	$\mathbf{0}$
a) Impairment of long-term assets (financial assets excluded)	127
b) Impairment of short - term assets (financial assets excluded)	128
7. Provisions	129
8. Other operating costs	130	711.802	711.802	1.736.421	1.736.421
III. FINANCIAL INCOME (132 to 136)	131	7.337.706	7.337.706	16.754.511	16.754.511
1. Interest income, foreign exchange gains, dividends and similar income from related parties	132	6.228	6.228	284.075	284.075
2. Interest income, foreign exchange gains, dividends and similar income from non - related parties and other entities	133	7.331.478	7.331.478	9.105.584	9.105.584
3. Share in income from affiliated entrepreneurs and participating interests	134
4. Unrealized gains (income) from financial assets	135
5. Other financial income	136			7.364.852	7.364.852
IV. FINANCIAL EXPENSES (138 do 141)	137	5.985.266	5.985.266	5.623.804	5.623.804
1. Interest expenses, foreign exchange losses, dividends and similar expenses from related parties	138	2.586.249	2.586.249	2.901.629	2.901.629
2. Interest expenses, foreign exchange losses, dividends and similar expenses from non -	139	3.399.017	3.399.017	2.722.175	2.722.175
related parties and other entities 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	114.617.939	114.617.939	194.675.479	194.675.479
X. TOTAL EXPENSES (114+137+143 + 145)	147	111.239.775	111.239.775	178.044.141	178.044.141
XI. PROFIT OR LOSS BEFORE TAXATION (146-147)	148	3.378.164	3.378.164	16.631.338	16.631.338
1. Profit before taxation (146-147)	149	3.378.164	3.378.164	16.631.338	16.631.338
2. Loss before taxation (147-146)	150	$\circ$	$\circ$	$\mathbf 0$	$\circ$
XII. PROFIT TAX	151				16.631.338
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151) 1. Profit for the period (149-151)	152 153	3.378.164 3.378.164	3.378.164 3.378.164	16.631.338 16.631.338	16.631.338
2. Loss for the period (151-148)	154	$\overline{0}$	$\mathbf{0}$	$\Omega$	$\theta$
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	3.378.164	3.378.164	16.631.338	16.631.338
II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAX (159 do 165)	158	O		$\mathbf{0}$	O
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	166
IV. NET OTHER COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (158-166)	167	$\mathbf 0$	0	$\mathbf{0}$	$\mathbf 0$
V. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (157+167)	168	3.378.164	3.378.164	16.631.338	16.631.338
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. Attributed to minority interest	170

for the period	1.1.2017	do	31.3.2017
Item			AOP code	Last year	Current year
1			$\mathbf{z}$	3	4
CASH FLOW FROM OPERATING ACTIVITIES
1. Profit before tax			001	3.378.164	16.631.338
2. Depreciation			002	7.406.637	6.529.102
3. Increase in short term liabilities			003
4. Decrease in short term receivables			004	88.775.900	46.483.773
5. Decrease in inventories			005	22.423.201	63.879.552
6. Other increase in cash flow			006	6.540.172	1.842.862
I. Total increase in cash flow from operating activities (001 to 006)			007	128.524.074	135.366.627
1. Decrease in short term liabilities		008	116.213.623	105.376.792
2. Increase in short term receivables			009
3. Increase in inventories			010
4. Other decrease in cash flow			011	5.592.552	61.936.381
II. Total decrease in cash flow from operating activities (008 to 011)			012	121.806.175	167.313.173
A1) NET INCREASE IN CASH FLOW FROM OPERATING ACTIVITIES AKTIVNOSTI (007-012)			013	6.717.899
A2) NET DECREASE IN IN CASH FLOW FROM OPERATING ACTIVITIES AKTIVNOSTI (012-007)			014		31.946.546
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 III. Total cash inflows from investing activities (015 to 019)			019	2.586.249	891.260
			020	2.686.753	1.065.596
			021	2.068.635	212.994
			022
3. Other cash outflow for investing activities	1. Cash outflow for purchase of long-term tangible and intangible assets 2. Cash outflow for acquisition of equity and debt financial instruments		023	524.171	15.722
IV. Total cash outflow for investing activities (021 do 023)			024	2.592.806	228.716
B1) NET INCREASE IN CASH FLOW FROM INVESTING ACTIVITIES (020-024) 025 B2) NET DECREASE IN CASH FLOW FROM INVESTING ACTIVITIES 026			93.947	836.880
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	71.499.768	67.908.500
3. Other proceeds from financial activities			029	24.728.278
V. Total cash inflows from financial activities (027 to 029)			030	96.228.046	67.908.500
1. Cash outflow for repayment of credit principal and bonds			031	67.343.436	47.376.122
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	24.435.147	500.000
VI. Total cash outflow for financial activities (031 to 035)			036	93.487.607	48.748.460
C1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES AKTIVNOSTI (030-036)			037	2.740.439	19.160.040
C2) NET DECREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES AKTIVNOSTI (036-030)			038
Total increase in cash flow (013 - 014 + 025 - 026 + 037 - 038)			039	9.552.285
Total decrease in cash flow $(014 - 013 + 026 - 025 + 038 - 037)$			040		11,949.626
Cash and cash equivalents at the beginning of the period			041	7.002.279	22.411.336
Increase of cash and cash equivalents			042	9.552.285	$\circ$
Decrease of cash and cash equivalents			043	$\circ$	11.949.626
Cash and cash equivalents at the end of the period			044	16,554.564	10.461.710

STATEMENT OF CASH FLOWS - INDIRECT METHOD

31.3.2017 for the period 1.1.2017 do
Item	AOP code	Last year	Current year
$\mathbf 1$	$\overline{2}$	$\overline{3}$	$\overline{4}$
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	56.346.673	56.346.673
4. Retained earnings or accumulated loss	004	312.352.661	349.584.804
5. Profit or loss for the current year	005	37.232.143	16.631.338
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	665.899.638	682.530.976
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	$\Omega$	$\circ$
17 a. Attributed to equity holders of parent company	018
17 b. Attributed to minority interest	019

STATEMENT OF CHANGES IN EQUITY