Viro Tvornica ŠEĆERA d.d.

Quarterly Report • Jul 31, 2017

STATEMENT OF PERSON RESPONSIBLE FOR PRODUCTION OF THE CONSOLIDATED REPORT FOR 2Q 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 a. d.d., Zagreb and its subsidiaries for the period I-VI 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 July 27, 2017

RESPONSIBLE PERSON:
PRESIDENT OF THE MANAGEMENT BOARD
Željko Zadro, dipl.oec.	TVORNICA ŠEĆERA d.d.
MEMBER OF THE MANAGEMENT BOARD	MEMBER OF THE MANAGEMENT BOARD
Darko Krstić, dipl.oec	Ivo Rešić, mr.sc.

Appendix 1 Reporting period:	01.01.2017. to	30.06.2017.
	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: info@secerana.hr
Internet address: www.secerana.hr
Code and name of comune/town ZAGREB 133
Code and county name GRAD ZAGREB 21		Number of employees	483
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
   2. Statement of responsible persons for preparation o

暖 irc TVORNICA ŠEĆERA d.d. 4

(signed by authorised person for representation)

BALANCE SHEET as at $\overline{30.06.2017}$ .

Item	AOP code	Last year (net)	Current year (net)
1	$\overline{2}$	$3\phantom{a}$	4
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	521.360.097
1. Assets development	003	769.909	619.611
2. Concessions, patents, licences fees, trade and service marks, software and other rights	004 005
3. Goodwill	006	769.909	619.611
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	514.950.344
1. Land	011	38.540.921	38.540.921
2. Buildings	012	228.037.294	231.413.100
3. Plant and equipment	013	194.768.612	187.777.669
4. Tools, facility inventory and transport assets 5. Biological assets	014	2.712.606	2.550.465
	015
6. Prepayments for tangible assets 7. Tangible assets in progress	016	34.576.964	33.887.917
8. Other tangible assets	017	35.993.969	18.735.444
9. Investments in buildings	018	44.900	44.900
III. LONG-TERM FINANCIAL ASSETS (021 to 028)	019	2.074.669	1.999.928
1. Investments (shares) with related parties	020	5.226.520	5.200.227
2. Loans given to related parties	021	900.000	907.669
3. Participating interest (shares)	022
4. Loans to entrepreneurs in whom the entity holds participating interests	023 024
5. Investments in securities	025	910.606	921.115
6. Loans, deposits and similar assets	026	3.415.914	3.371.443
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	030
2. Receivables from based on trade loans	031
3. Other receivables	032	589.915	589.915
V. DEFERRED TAX ASSETS	033
C) SHORT TERM ASSETS (035+043+050+058)	034	928.099.253	835.062.223
I. INVENTORIES (036 to 042) 1. Raw-material and supplies	035	635.711.354	584.811.908
2. Work in progress	036	76.486.835	157.409.922
3. Finished goods	037		68.659.181
4. Merchandise	038	373.566.269	235.051.131
5. Prepayments for inventories	039	134.836.805	57.779.193
6. Long - term assets held for sales	040	50.821.445	65.912.481
7. Biological assets	041 042
II. RECEIVABLES (044 to 049)	043
1. Receivables from related parties	044	241.144.333 2.422.079	229.574.142 3.017.395
2. Accounts receivable	045	173.217.676	216.361.417
3. Receivables from participating parties	046
4. Receivables from employees and members of related parties	047	5.785	5.808
5. Receivables from government and other institutions	048	64.791.695	9.463.567
6. Other receivables	049	707.098	725.955
III. SHORT TERM FINANCIAL ASSETS (051 to 057)	050	23.373.920	18.888.676
1. Shares (stocks) in related parties	051
2. Loans given to related parties	052		5.766.878
3. Participating interests (shares)	053
4. Loans to entrepreneurs in whom the entity holds participating interests	054
5. Investments in securities 6. Loans, deposits, etc.	055
7. Other financial assets	056	14.000.408	12.252.198
V. CASH AT BANK AND IN CASHIER	057	9.373.512	869.600
) PREPAID EXPENSES AND ACCRUED REVENUE	058	27.869.646	1.787.497
E) TOTAL ASSETS (001+002+034+059)	059	11.332.940	7.223.262
F) OFF-BALANCE RECORDS	060 061	1.482.768.472 1.739.081.455	1.363.645.582
			1.465.012.736

Н

Item	AOP code	Last year (net)	Current year (net)
1	$\overline{2}$	$\overline{3}$	$\overline{4}$
LIABILITIES AND CAPITAL
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	479.530.197	486.866.720
II. 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	56.410.827	56.418.135
1. Reserves prescribed by low	066	12.525.652	12.532.960
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)	072	99.270.607	155.502.739
1. Retained earnings	073	99.270.607	155.502.739
2. Accumulated loss	074
VI. PROFIT/LOSS FOR THE CURRENT YEAR (076-077)	075	57.514.007	8.695.095
1. Profit for the current year	076	57.514.007	8.695.095
2. Loss for the current year	077
IX. MINORITY INTERESTS	078	6.366.595	6.282.590
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	243.460.737	203.922.474
1. Liabilities to related parties	084
2. Liabilities for loans, deposits etc.	085	1.936.506	1.634.415
3. Liabilities to banks and other financial institutions	086	241.447.754	202.211.582
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)	093	755.547.863	672.097.419
1. Liabilities to related parties	094	35.000
2. Liabilities for loans, deposits etc.	095	12.921.646	13.898
3. Liabilities to banks and other financial institutions	096	202.505.024	13.608.500 296.782.356
4. Liabilities for received prepayments
5. Accounts payable	097	1.675.462	13.998.672
6. Liabilities arising from debt securities	098	419.205.766	240.112.458
7. Liabilities to entrepreneurs in whom the entity holds participating interests	099
8. Liabilities to employees	100
9. Liabilities for taxes, contributions and similar fees	101	3.153.292	3.833.808
10. Liabilities to share - holders	102	4.916.880	8.857.295
11. Liabilities for long-term assets held for sale	103	30.963	30.963
12. Other short - term liabilities	104
	105	111.103.830	94.859.469
E) DEFFERED SETTLEMENTS OF CHARGES AND INCOME DEFERRED TO FUTURE PERIOD	106	3.776.466	305.760
F) TOTAL - CAPITAL AND LIABILITIES (062+079+083+093+106) G) OFF-BALANCE RECORDS	107	1.482.768.472	1.363.645.582
	108	1.739.081.455	1.465.012.736
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	473.163.602	480.584.130
2. Attributed to minority interest	110	6.366.595	6.282.590

PROFIT AND LOSS ACCOUNT for the period 01.01.2017. do 30.06.2017.

Item	AOP code		Last year	Current year
		Comulative	Quartely	Comulative	Quartely
$\overline{\mathbf{1}}$	$\overline{2}$	$\overline{\mathbf{3}}$	4	5	$\mathbf{6}$
. OPERATING REVENUE (112+113) 1. Sales revenue	111	359.011.300	177.477.995	533.665.040	342.984.772
2. Other operating revenues	112	353.154.054	176.658.531	530.410.476	341.014.066
II. OPERATING EXPENSES (115+116+120+124+125+126+129+130)	113	5.857.246	819.464	3.254.564	1.970.706
1. Changes in value of work in progress and finished products	114	364.198.289	182.934.250	528.404.862	337.222.533
2. Material costs (117 to 119)	115 116	40.536.720	$-50.727.228$	70.017.289	12.180.338
a) Raw material and material costs	117	253.707.585 127.132.736	198.472.539	386.120.026	287.470.029
b) Costs of goods sold	118	101.163.238	118.177.511 65.717.588	156.268.637 203.329.908	147.718.432
c) Other external costs	119	25.411.611	14.577.440	26.521.481	122.463.737 17.287.860
3. Staff costs (121 to 123)	120	24.949.194	12.619.103	26.445.418	13.917.776
a) Net salaries and wages	121	15.487.940	7.834.940	16.704.069	8.750.938
b) Cost for taxes and contributions from salaries	122	5.821.387	2.942.048	5.946.324	3.179.918
c) Contributions on gross salaries	123	3.639.867	1.842.115	3.795.025	1.986.920
4. Depreciation	124	29.798.369	14.843.079	27.484.085	13.828.432
5. Other costs	125	12.705.988	6.461.997	14.069.477	7.544.435
6. Impairment (127+128)	126	55.218	0	$\mathbf{0}$	0
a) Impairment of long-term assets (financial assets excluded)	127
b) Impairment of short - term assets (financial assets excluded) 7. Provisions	128	55.218	0
8. Other operating costs	129
III. FINANCIAL INCOME (132 to 136)	130	2.445.215	1.264.760	4.268.567	2.281.523
	131	9.504.217	1.086.217	19.962.173	2.662.249
1. Interest income, foreign exchange gains, dividends and similar income from related parties povezanim poduzetnicima	132	62.153	60.169	85.562	63.918
2. Interest income, foreign exchange gains, dividends and similar income from non - related	133	8.911.234	510.263	12.482.509	2.582.994
3. Share in income from affiliated entrepreneurs and participating interests	134
4. Unrealized gains (income) from financial assets	135	500.000	500.000
5. Other financial income	136	30.830	15.785	7.394.102	15.337
IV. FINANCIAL EXPENSES (138 do 141)	137	14.853.114	7.425.963	16.611.262	9.699.936
1. Interest expenses, foreign exchange losses, dividends and similar expenses from related	138			689.048	144.725
2. Interest expenses, foreign exchange losses, dividends and similar expenses from non -	139	14.847.721	7.425.963	15.325.282	9.253.379
3. Unrealized losses (expenses) on financial assets	140
4. Other financial expenses	141	5.393	0	596.932	301.832
V. INCOME FROM INVESTMENT - SHARE IN PROFIT OF ASSOCIATED ENTREPRENEURS	142
VI. LOSS FROM INVESTMENT - SHARE IN LOSS OF ASSOCIATED ENTREPRENEURS VII. EXTRAORDINARY - OTHER INCOME	143
VIII. EXTRAORDINARY - OTHER EXPENSES	144
IX. TOTAL INCOME (111+131+142 + 144)	145
X. TOTAL EXPENSES (114+137+143 + 145)	146	368.515.517	178,564,212	553.627.213	345.647.021
XI. PROFIT OR LOSS BEFORE TAXATION (146-147)	147	379.051.403	190.360.213	545.016.124	346.922.469
1. Profit before taxation (146-147)	148	$-10.535.886$	$-11.796.001$	8.611.089	$-1.275.448$
2. Loss before taxation (147-146)	149	$\mathbf{O}$	$\mathbf 0$	8.611.089	$\mathbf{O}$
XII. PROFIT TAX	150	10.535.886	11.796.001	$\mathbf 0$	1.275.448
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151)	151	$\mathbf 0$		$\Omega$
1. Profit for the period (149-151)	152	$-10.535.886$	$-11.796.001$	8.611.089	$-1.275.448$
2. Loss for the period (151-148)	153 154	0	$\Omega$	8.611.089
APPENDIX to P&L account (to be filled in by entrepreneur that prepares consolidated financial report)		10.535.886	11.796.001	$\Omega$	1.275.448
XIV. PROFIT OR LOSS FOR THE PERIOD
1. Attributed to equity holders of parent company	155	$-10.494.648$
2. Attributed to minority interest	156	$-41.238$	$-11.718.319$ $-77.682$	8.695.095	$-1.221.875$
STATEMENT OF OTHER COMPREHENSIVE INCOME (IFRS)				$-84.006$	$-53.573$
I. PROFIT OR LOSS FOR THE PERIOD (= 152)	157	$-10.535.886$	$-11.796.001$	8.611.089	$-1.275.448$
II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAX (159 do 165)	158	$\Omega$	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
III. TAX ON OTHER COMPREHENSIVE INCOME FOR THE PERIOD	166
IV. NET OTHER COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (158-166)	167	$\mathbf{0}$	$\mathbf{0}$	$\circ$
V. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (157+167)	168	$-10.535.886$	$-11.796.001$	8.611.089	$-1.275.448$
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 2. Attributed to minority interest	169 170	$-10.494.648$	$-11.718.319$	8.695.095	$-1.221.875$

STATEMENT OF CASH FLOWS - INDIRECT METHOD
-------------------------------------------	--

	AOP code $\overline{2}$ 001 002 003 004 005 006 007 008 009 010 011 012 013	Last year 3 $-10.535.886$ 29.798.369 57.513.658 113.686.631 6.949.068 197.411.840 90.960.110 74.868.436 39.844.569 205.673.115	Current year 4 8.611.089 27.484.085 237.368 65.290.476 3.224.336 104.847.354 200.405.237 15.665.599
			216.070.836
		0
	014	8.261.275	111.223.482
	015	1.118.940	81.751
	016
	017	134.964	562.607
	018
	019	971.398	20.391.298
	020	2.225.302
	021	7.866.710	21.035.656 5.656.917
	022
	023	4.360.031	28.663
B1) NET INCREASE IN CASH FLOW FROM INVESTING ACTIVITIES (020-024)	024	12.226.741	5.685.580
	025	0	15.350.076
	026	10.001.439
			249.436.142
			8.000.000
			257.436.142
			185.195.292
		3.455.447	1.804.931
	034
	035	108.949.061	644.662
	036	259.284.487	187.644.885
	037	14.472.244	69.791.257
	038
	039
	040	3.790.470	26.082.149
	041	36.849.204	27.869.646
	042
	043		26.082.149
			1.787.497
	2. Proceeds from the credit principal, promissory notes, borrowings and other loans	027 028 029 030 031 032 033 044	164.228.453 109.528.278 273.756.731 146.879.979 3.790.470 33.058.734

STATEMENT OF CHANGES IN EQUITY

for the period 1.1.2017 30.6.2017 do
Item	AOP code	Last year	Current year
$\mathbf{1}$	$\mathbf{2}$	$\overline{\mathbf{3}}$	$\boldsymbol{A}$
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	56.410.827	56.418.135
4. Retained earnings or accumulated loss	004	99.270.607	155.502.739
5. Profit or loss for the current year	005	57.514.007	8.695.095
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	480.584.130
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	$\overline{0}$
17 a. Attributed to equity holders of parent company	018	473.163.602	480.584.130
17 b. Attributed to minority interest	019	6.366.595	6.282.590