Viro Tvornica ŠEĆERA d.d.

Quarterly Report • Jul 31, 2017

STATEMENT OF PERSON RESPONSIBLE FOR PRODUCTION OF THE THREE-MONTH REPORT FOR 1H 2017

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 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 July 25, 2017

RESPONSIBLE PERSON

PRESIDENT OF THE MANAGEMENT BOARD:

Željko Zadro, dipl.oec TVORNICA ŠEĆERA d.d.
ZAGREB

Ivo Rešić, Member of the Menagement Bord

Darko Krstić, Member of the Menagement Bord

Appendix 1 Reporting period:	1.1.2017 to	30.6.2017
	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 206
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: 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

WORNICA SECERA d.d. 4

(signed by authorised person for representation)

BALANCE SHEET
as at 30.6.2017

Item	AOP code	Last year (net)	Current year (net)
$\mathbf{1}$	$\mathbf{2}$	3	$\overline{4}$
ASSETS
A) RECEIVABLES FOR SUBSCRIBED BUT NOT PAID-IN CAPITAL	001
B) LONG-TERM ASSETS (003+010+020+029+033)	002	749.273.897 136.740	727.084.619 106.456
I. INTANGIBLE ASSETS (004 to 009)	003 004
1. Assets development 2. Concessions, patents, licences fees, trade and service marks, software and other rights	005	136.740	106.456
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	167.999.294
1. Land	011	5.548.592	5.548.592
2. Buildings	012	68.340.805	65.316.911
3. Plant and equipment	013	66.153.617	57.200.566
4. Tools, facility inventory and transport assets	014
5. Biological assets	015
6. Prepayments for tangible assets	016	34.576.964	33.887.917
7. Tangible assets in progress	017	3.286.081	4.036.080
8. Other tangible assets	018	9.300	9.300
9. Investments in buildings	019	2.074.669	1.999.928
III. LONG-TERM FINANCIAL ASSETS (021 to 028)	020	569.147.129	558.978.869 419.457.712
1. Investments (shares) with related parties	021 022	419.450.043 149.216.583	139.022.208
2. Loans given to related parties	023
3. Participating interest (shares) 4. Loans to entrepreneurs in whom the entity holds participating interests	024
5. Investments in securities	025	3.248	13.757
6. Loans, deposits and similar assets	026	477.255	485.192
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	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	673.602.286
I. INVENTORIES (036 to 042)	035	434.941.674	373.197.395
1. Raw-material and supplies	036	55.191.037	134.176.630
2. Work in progress	037		39.481.550
3. Finished goods	038	213.847.092 116.054.925	91.589.081 47.941.825
4. Merchandise	039 040	49.848.620	60.008.309
5. Prepayments for inventories 6. Long - term assets held for sales	041
7. Biological assets	042
II. RECEIVABLES (044 to 049)	043	184.412.623	171.992.379
1. Receivables from related parties	044	1.259.876	12.459.988
2. Accounts receivable	045	133.612.862	153.107.087
3. Receivables from participating parties	046
4. Receivables from employees and members of related parties	047	890	643
5. Receivables from government and other institutions	048	49.421.570	6.286.633
6. Other receivables	049	117.425	138.028
III. SHORT TERM FINANCIAL ASSETS (051 to 057)	050	26.687.789	127.237.608
1. Shares (stocks) in related parties	051
2. Loans given to related parties	052	4.681.963	115.553.568
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	10.814.440
7. Other financial assets	057	9.373.512	869.600
IV. CASH AT BANK AND IN CASHIER	058	22.411.336	1.174.904 2.519.268
D) PREPAID EXPENSES AND ACCRUED REVENUE	059 060	5.501.947 1.423.229.266	1.403.206.173
E) TOTAL ASSETS (001+002+034+059) F) OFF-BALANCE RECORDS	061	291.648.942	206.834.696

Item	AOP	Last year (net)	Current year (net)
	code $\mathbf{2}$	3	$\boldsymbol{4}$
И
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	665.899.638	677.514.563
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	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	11.614.925
1. Profit for the current year	076	37.232.143	11.614.925
2. Loss for the current year	077
IX. MINORITY INTERESTS	078
B) PROVISIONS (080 to 082)	079	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	190.196.895
1. Liabilities to related parties	084
2. Liabilities for loans, deposits etc.	085	1.375.750	954.807
3. Liabilities to banks and other financial institutions	086	228.213.597	189.242.088
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	527.558.401	535.415.200
1. Liabilities to related parties	094	30.738.212	449.569
2. Liabilities for loans, deposits etc.	095	7.443.244	13.522.081
3. Liabilities to banks and other financial institutions	096	101.174.511	221.737.562
4. Liabilities for received prepayments	097	1.302.698	13.570.905
5. Accounts payable	098	313.719.185	207.627.271
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	1.997.041
9. Liabilities for taxes, contributions and similar fees	102	2.101.273	6.885.913
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	69.593.895
E) DEFFERED SETTLEMENTS OF CHARGES AND INCOME DEFERRED TO FUTURE PERIOD	106	181.880	79.515
F) TOTAL - CAPITAL AND LIABILITIES (062+079+083+093+106)	107	1.423.229.266	1.403.206.173
G) OFF-BALANCE RECORDS	108	291.648.942	206.834.696
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 30.06.2017.

VIRO TVORNICA ŠEĆERA d.d. Item		Last year		Current year
		Comulative	Quartely		Comulative Quartely
$\ddot{\mathbf{1}}$	$\overline{2}$	3	4	5	6
OPERATING REVENUE (112+113)	111	192.576.963	85.296.730	424.674.161	246.753.193
1. Sales revenue	112	191.326.295	85.090.276	423.599.945	246.355.560
2. Other operating revenues	113	1.250.668	206.454	1.074.216	397.633
II. OPERATING EXPENSES (115+116+120+124+125+126+129+130)	114	192.869.442	87.614.933	420.836.168	248.415.831
1. Changes in value of work in progress and finished products	115	$-62.138.877$	-97.760.850	82.776.461	14.610.821
i and finished products 2. Material costs (117 to 119)	116	222.517.974	168.608.935	305.065.170	216.931.381
a) Raw material and material costs	117	113.198.404	109.453.850	96.751.554	93.961.250
b) Costs of goods sold	118	92.879.967	50.097.923	189.234.474	110.017.672
c) Other external costs	119	16,439,603	9.057.162	19.079.142	12.952.459
3. Staff costs (121 to 123)	120	10.302.431	5.354.661	11.612.802	6,533.329
a) Net salaries and wages	121	6.348.711	3.299.201	7.243.723	4.032.928
b) Cost for taxes and contributions from salaries	122	2.447.784	1.272.748	2.726.092	1.583.439
c) Contributions on gross salaries	123	1.505.936	782.712	1.642.987	916.962
4. Depreciation	124	14.756.480	7.349.843	13.119.856	6.590.754
5. Other costs	125	5.557.773	2.900.485	6.092.915	3.317.003
6. Impairment (127+128)	126	$\mathbf{0}$	O	$\mathbf{0}$	C
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	1.873.661	1.161.859	2.168.964	432.543
III. FINANCIAL INCOME (132 to 136)	131	8.247.682	909.976	20.227.531	3.473.020
1. Interest income, foreign exchange gains, dividends and similar income from related	132	167.869	161.641	1.418.837	1.134.762
parties 2. Interest income, foreign exchange gains, dividends and similar income from non - related
parties and other entities	133	7.579.813	248.335	11.443.842	2.338.258
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			7.364.852
IV. FINANCIAL EXPENSES (138 do 141)	137	10.192.254	4.206.988	12.450.599	6.826.795
1. Interest expenses, foreign exchange losses, dividends and similar expenses from related parties	138	2.840.963	254.714	3.644.741	743.112
2. Interest expenses, foreign exchange losses, dividends and similar expenses from non -	139	7.351.291	3.952.274	8.805.858	6.083.683
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	200.824.645	86.206.706	444.901.692	250.226.21
X. TOTAL EXPENSES (114+137+143 + 145)	147	203.061.696	91.821.921	433.286.767	255.242.626
XI. PROFIT OR LOSS BEFORE TAXATION (146-147)	148	$-2.237.051$	$-5.615.215$	11.614.925	$-5.016.41$
1. Profit before taxation (146-147)	149	0	0	11.614.925
2. Loss before taxation (147-146)	150	2.237.051	5.615.215	$\mathbf 0$	5.016.41
XII. PROFIT TAX	151
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151)	152	$-2.237.051$	$-5.615.215$	11.614.925	$-5.016.41$
1. Profit for the period (149-151)	153	$\bf{0}$	$\mathbf 0$	11.614.925
2. Loss for the period (151-148)	154	2.237.051	5.615.215	$\mathbf{0}$	5.016.41
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)					$-5.016.41$
I. PROFIT OR LOSS FOR THE PERIOD (= 152)	157	$-2.237.051$ $\sigma$	$-5.615.215$ $\mathbf{0}$	11.614.925 $\mathbf 0$
II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAX (159 do 165)	158
1. Exchange differences on translation of foreign operations 2. Movements in revaluation reserves of long - term tangible and intangible assets	159 160
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	$\mathbf{0}$	$\mathbf{0}$	$\mathbf 0$
V. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (157+167)	168	$-2.237.051$	$-5.615.215$	11.614.925	$-5.016.41$
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	30.6.2017
	Item		AOP code	Last year	Current year
	1		$\mathbf{2}$	3	4
CASH FLOW FROM OPERATING ACTIVITIES
1. Profit before tax			001	$-2.237.051$	11.614.925
2. Depreciation			002	14.756.480	13.119.856
3. Increase in short term liabilities			003
4. Decrease in short term receivables			004	94.022.391	12.420.244
5. Decrease in inventories			005		61.744.279
6. Other increase in cash flow			006	6.913.640	2.982.679
I. Total increase in cash flow from operating activities (001 to 006)			007	113.455.460	101.881.983
1. Decrease in short term liabilities			008	11.096.165	118.785.088
2. Increase in short term receivables			009
3. Increase in inventories			010	74.868.436
4. Other decrease in cash flow			011	39.836.680	107.146.351
II. Total decrease in cash flow from operating activities (008 to 011)			012	125.801.281	225.931.439
A1) NET INCREASE IN CASH FLOW FROM OPERATING ACTIVITIES AKTIVNOSTI (007-012)			013
A2) NET DECREASE IN IN CASH FLOW FROM OPERATING ACTIVITIES AKTIVNOSTI (012-007)			014	12.345.821	124.049.456
CASH FLOW FROM INVESTING ACTIVITIES
1. Cash inflows from sales of long-term tangible and intangible assets			015		76.042
2. Cash inflows from sales of equity and debt instruments			016
3. Interests receipts			017	134.964	562.607
4. Dividend receipts			018
5. Other cash inflows from investing activities			019	2.048.915	10.196.923
III. Total cash inflows from investing activities (015 to 019)			020	2.183.879	10.835.572
1. Cash outflow for purchase of long-term tangible and intangible assets			021	3.776.641	1.174.880
2. Cash outflow for acquisition of equity and debt financial instruments			022
3. Other cash outflow for investing activities			023	1.225.057	28.663
IV. Total cash outflow for investing activities (021 do 023)			024	5.001.698	1.203.543
B1) NET INCREASE IN CASH FLOW FROM INVESTING ACTIVITIES (020-024) B2) NET DECREASE IN CASH FLOW FROM INVESTING ACTIVITIES			025		9.632.029
AKTIVNOSTI (024-020)			026	2.817.819
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	164.228.453	182.908.500
3. Other proceeds from financial activities			029	109.528.278	8.000.000
V. Total cash inflows from financial activities (027 to 029)			030	273.756.731	190.908.500
1. Cash outflow for repayment of credit principal and bonds			031	124.085.452	95.422.574
2. Cash outflow for dividends paid			032
3. Cash outflow for financial lease			033	3.455.447	1.804.931
4. Cash outflow for purchase of treasury shares			034
5. Other cash outflow for financial activities			035	107.268.064	500.000
VI. Total cash outflow for financial activities (031 to 035)			036	234.808.963	97.727.505
C1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES AKTIVNOSTI (030-036)			037	38.947.768	93.180.995
C2) NET DECREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES			038
AKTIVNOSTI (036-030) Total increase in cash flow (013 - 014 + 025 - 026 + 037 - 038)			039	23.784.128
Total decrease in cash flow $(014 - 013 + 026 - 025 + 038 - 037)$			040		21.236.432
Cash and cash equivalents at the beginning of the period			041	7.002.279	22.411.336
Increase of cash and cash equivalents			042	23.784.128	0
Decrease of cash and cash equivalents			043	0	21.236.432
Cash and cash equivalents at the end of the period			044	30.786.407	1.174.904

STATEMENT OF CASH FLOWS - INDIRECT METHOD

30.6.2017 for the period 1.1.2017 do
Item	AOP code	Last year	Current year
$\overline{\mathbf{1}}$	$\overline{2}$	3	$\boldsymbol{4}$
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	11.614.925
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	677.514.563
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	$\Omega$	$\Omega$
17 a. Attributed to equity holders of parent company	018
17 b. Attributed to minority interest	019

STATEMENT OF CHANGES IN EQUITY $142017$ do $3062017$