Viro Tvornica ŠEĆERA d.d.

Quarterly Report • Oct 31, 2017

STATEMENT OF PERSON RESPONSIBLE FOR PRODUCTION OF THE CONSOLIDATED REPORT FOR 3Q 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-IX 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 October 30, 2017

RESPONSIBLE PERSON:

PRESIDENT OF THE MANAGEMENT BOARD

Željko Zadro, dipl.oec.

TVORNICA ŠEĆERA d.d.
ZAGREB

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	30.09.2017.
	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 21 GRAD ZAGREB		Number of employees 489
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 of financial statements 3. Report of the Management Board on position of the Company

SANGER AND

LEE MUSICAL

(signed by authorised person for representation)

BALANCE SHEET
as at $\sqrt{30.09.2017}$ .

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)	002	543.336.279	531.280.694
I. INTANGIBLE ASSETS (004 to 009)	003	769.909	1.025.277
1. Assets development	004
2. Concessions, patents, licences fees, trade and service marks, software and other rights 3. Goodwill	005	769.909	1.025.277
4. Prepayments for purchase of intangible assets	006 007
5. Intangible assets in preparation	008
6. Other intangible assets	009
II. TANGIBLE ASSETS (011 to 019)	010	536.749.935	523.891.916
1. Land	011	38.540.921	38.540.921
2. Buildings	012	228.037.294	230.961.394
3. Plant and equipment	013	194.768.612	194.022.663
4. Tools, facility inventory and transport assets	014	2.712.606	2.734.081
5. Biological assets	015
6. Prepayments for tangible assets	016	34.576.964	34.178.902
7. Tangible assets in progress	017	35.993.969	21.446.497
8. Other tangible assets	018	44.900	44.900
9. Investments in buildings	019	2.074.669	1.962.558
III. LONG-TERM FINANCIAL ASSETS (021 to 028)	020	5.226.520	5.773.586
1. Investments (shares) with related parties	021	900.000	1.282.522
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	3.569.949
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	893.802.042
I. INVENTORIES (036 to 042)	035	635.711.354	543.823.081
1. Raw-material and supplies 2. Work in progress	036	76.486.835	83.897.120
	037		100.477.852
3. Finished goods 4. Merchandise	038	373.566.269	250.308.251
5. Prepayments for inventories	039	134.836.805	47.613.574
6. Long - term assets held for sales	040	50.821.445	61.526.284
7. Biological assets	041 042
II. RECEIVABLES (044 to 049)	043	241.144.333	295.011.531
1. Receivables from related parties	044	2.422.079	3.171.602
2. Accounts receivable	045	173.217.676	270.740.566
3. Receivables from participating parties	046
4. Receivables from employees and members of related parties	047	5.785	8.653
5. Receivables from government and other institutions	048	64.791.695	20.364.971
6. Other receivables	049	707.098	725.739
III. SHORT TERM FINANCIAL ASSETS (051 to 057)	050	23.373.920	21.380.004
1. Shares (stocks) in related parties	051
2. Loans given to related parties	052		6.981.367
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	13.529.037
7. Other financial assets	057	9.373.512	869.600
IV. CASH AT BANK AND IN CASHIER	058	27.869.646	33.587.426
D) PREPAID EXPENSES AND ACCRUED REVENUE	059	11.332.940	3.461.555
E) TOTAL ASSETS (001+002+034+059)	060	1.482.768.472	1.428.544.291
F) OFF-BALANCE RECORDS	061	1.739.081.455	1.499.153.038

Item	AOP code	Last year (net)	Current year (net)
$\mathbf{1}$	$\overline{2}$	3	$\overline{4}$
LIABILITIES AND CAPITAL
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	479.530.197	465.480.134
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	56.410.827	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	155.502.736
1. Retained earnings	073	99.270.607	155.502.736
2. Accumulated loss	074
VI. PROFIT/LOSS FOR THE CURRENT YEAR (076-077)	075	57.514.007	$-12.708.053$
1. Profit for the current year	076	57.514.007
2. Loss for the current year	077		12.708.053
IX. MINORITY INTERESTS	078	6.366.595	6.299.155
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
	083
C) LONG - TERM LIABILITIES (084 to 092)		243.460.737	188.831.809
1. Liabilities to related parties	084
2. Liabilities for loans, deposits etc.	085	1.936.506	1.487.760
3. Liabilities to banks and other financial institutions	086	241.447.754	187.267.572
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	763.278.330
1. Liabilities to related parties	094	35.000
2. Liabilities for loans, deposits etc.	095	12.921.646	13.039.193
3. Liabilities to banks and other financial institutions	096	202.505.024	370.524.449
4. Liabilities for received prepayments	097	1.675.462	16.777.116
5. Accounts payable	098	419.205.766	319.059.651
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	3.508.648
9. Liabilities for taxes, contributions and similar fees	102	4.916.880	2.187.494
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	38.150.816
E) DEFFERED SETTLEMENTS OF CHARGES AND INCOME DEFERRED TO FUTURE PERIOD	106	3.776.466	10.500.809
F) TOTAL - CAPITAL AND LIABILITIES (062+079+083+093+106)	107	1.482.768.472	1.428.544.291
G) OFF-BALANCE RECORDS	108	1.739.081.455	1.499.153.038
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	459.180.979
2. Attributed to minority interest	110	6.366.595	6.299.155

PROFIT AND LOSS ACCOUNT
for the period 01.01.2017. do 30.09.2017.

$\sim$ $\sim$ $\overline{1}$

Item		Last year		Current year
		Comulative	Quartely	Comulative	Quartely
$\vert$ 1 OPERATING REVENUE (112+113)	$\overline{2}$	3 5	$\overline{\mathbf{4}}$	5 1	6
1. Sales revenue	111 112	545.985.725 537.863.731	186.974.425 184.709.677	781.056.412	247.391.372
2. Other operating revenues	113	8.121.994	2.264.748	774.304.831 6.751.581	243.894.355 3.497.017
II. OPERATING EXPENSES (115+116+120+124+125+126+129+130)	114	545.381.844	181.183.555	785.558.981	257.154.119
1. Changes in value of work in progress and finished products	115	18.301.432	$-22.235.288$	14.484.557	$-55.532.732$
2. Material costs (117 to 119)	116	422.582.139	168.874.554	661.925.435	275.805.409
a) Raw material and material costs b) Costs of goods sold	117	230.597.559	103.464.823	348.000.746	191.732.109
c) Other external costs	118	152.881.385	51.718.147	265.200.110	61.870.202
3. Staff costs (121 to 123)	119	39.103.195	13.691.584	48.724.579	22.203.098
a) Net salaries and wages	120	37.553.027	12.603.833	41.483.168	15.037.750
b) Cost for taxes and contributions from salaries	121 122	23.334.523	7.846.583	26.133.214	9.429.145
c) Contributions on gross salaries	123	8.749.359 5.469.145	2.927.972 1.829.278	9.402.916 5.947.038	3.456.592
4. Depreciation	124	44.554.821	14.756.452	41.496.832	2.152.013 14.012.747
5. Other costs	125	18.835.541	6.129.553	20.564.189	6.494.712
6. Impairment (127+128)	126	55.218	$\mathbf 0$	$\mathbf{0}$	$\mathbf{0}$
a) Impairment of long-term assets (financial assets excluded)	127
b) Impairment of short - term assets (financial assets excluded)	128	55.218
7. Provisions	129
8. Other operating costs III. FINANCIAL INCOME (132 to 136)	130	3.499.666	1.054.451	5.604.800	1.336.233
	131	10.686.606	1.182.389	23.050.775	3.088.602
1. Interest income, foreign exchange gains, dividends and similar income from related parties povezanim poduzetnicima	132	122.983	60.830	597.774	512.212
2. Interest income, foreign exchange gains, dividends and similar income from non - related	133	10.015.267	1.104.033	14.261.151	1.778.642
3. Share in income from affiliated entrepreneurs and participating interests	134
4. Unrealized gains (income) from financial assets	135	500.000
5. Other financial income	136	48.356	17.526	8.191.850	797.748
IV. FINANCIAL EXPENSES (138 do 141)	137	21.598.772	6.745.658	31.323.700	14.712.438
1. Interest expenses, foreign exchange losses, dividends and similar expenses from related 2. Interest expenses, foreign exchange losses, dividends and similar expenses from non -	138			689.048
3. Unrealized losses (expenses) on financial assets	139	21.116.651	6.268.930	28.485.016	13.159.734
4. Other financial expenses	140 141	372.500	372.500
V. INCOME FROM INVESTMENT - SHARE IN PROFIT OF ASSOCIATED ENTREPRENEURS	142	109.621	104.228	2.149.636	1.552.704
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	556.672.331	188.156.814	804.107.187	250.479.974
X. TOTAL EXPENSES (114+137+143 + 145)	147	566.980.616	187.929.213	816.882.681	271.866,557
XI. PROFIT OR LOSS BEFORE TAXATION (146-147)	148	$-10.308.285$	227.601	$-12.775.494$	$-21.386.583$
1. Profit before taxation (146-147)	149	$\Omega$	227.601
2. Loss before taxation (147-146) XII. PROFIT TAX	150	10.308.285	0	12.775.494	21.386.583
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151)	151	$\Omega$	$\circ$	$\Omega$	$\Omega$
1. Profit for the period (149-151)	152	$-10.308.285$	227.601	$-12.775.494$	$-21.386.583$
2. Loss for the period (151-148)	153		227.601	$\Omega$
APPENDIX to P&L account (to be filled in by entrepreneur that prepares consolidated financial report)	154	10.308.285	0	12.775.494	21.386.583
XIV. PROFIT OR LOSS FOR THE PERIOD
1. Attributed to equity holders of parent company	155	$-10.289.495$	205.153	$-12.708.053$	$-21.403.148$
2. Attributed to minority interest	156	$-18.790$	22.448	$-67.441$	16.565
STATEMENT OF OTHER COMPREHENSIVE INCOME (IFRS)
I. PROFIT OR LOSS FOR THE PERIOD (= 152)	157	$-10.308.285$	227.601	$-12.775.494$	$-21.386.583$
II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAX (159 do 165)	158	$\Omega$	$\mathbf 0$	$\mathbf{0}$
1. Exchange differences on translation of foreign operations	159
2. Movements in revaluation reserves of long - term tangible and intangible assets 3. Profit or loss from reevaluation of financial assets available for sale	160
4. Gains or losses on efficient cash flow hedging	161
5. Gains or losses on efficient hedge of a net investment in foreign countries	162
6. Share in other comprehensive income / loss of associated companies	163
7. Actuarial gains / losses on defined benefit plans	164 165
III. TAX ON OTHER COMPREHENSIVE INCOME FOR THE PERIOD	166
IV. NET OTHER COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (158-166)	167	0	$\mathbf 0$	0
V. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (157+167)	168	$-10.308.285$	227.601	$-12.775.494$	$\mathbf{0}$ $-21.386.583$
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	$-10.289.495$	205.153	$-12.708.053$	$-21.403.148$
2. Attributed to minority interest	170	$-18.790$	22.448	$-67.441$	16.565

STATEMENT OF CASH FLOWS - INDIRECT METHOD

for the period	1.1.2017	do	30.9.2017
Item			AOP code		Last year	Current year
$\mathbf{1}$				$\overline{2}$	3	$\boldsymbol{A}$
CASH FLOW FROM OPERATING ACTIVITIES
1. Profit before tax			001		$-10.308.285$	$-12.775.494$
2. Depreciation			002		44.554.821	41.496.832
3. Increase in short term liabilities			003		79.988.675
4. Decrease in short term receivables			004		37.667.074
5. Decrease in inventories			005		75.793.622	138.472.677
6. Other increase in cash flow			006		10.360.265	5.334.006
I. Total increase in cash flow from operating activities (001 to 006)			007		238.056.172	172.528.021
1. Decrease in short term liabilities			008		14,737,208	176.343.697
2. Increase in short term receivables			009			52.797.706
3. Increase in inventories			010		133.029.328	47.858.973
4. Other decrease in cash flow			011		47.231.023
II. Total decrease in cash flow from operating activities (008 to 011)			012		194.997.559	277.000.376
A1) NET INCREASE IN CASH FLOW FROM OPERATING ACTIVITIES			013		43.058.613
A2) NET DECREASE IN IN CASH FLOW FROM OPERATING ACTIVITIES			014		0	104.472.355
CASH FLOW FROM INVESTING ACTIVITIES
1. Cash inflows from sales of long-term tangible and intangible assets			015		1.118.940	122.721
2. Cash inflows from sales of equity and debt instruments			016
3. Interests receipts			017		331.285	631.114
4. Dividend receipts			018			77.328
5. Other cash inflows from investing activities			019		2.107.434	3.379.171
III. Total cash inflows from investing activities (015 to 019)			020		3.557.659	4.210.334
1. Cash outflow for purchase of long-term tangible and intangible assets			021		26.393.801	29.016.902
2. Cash outflow for acquisition of equity and debt financial instruments			022
3. Other cash outflow for investing activities			023		6.515.111	3.947.275
IV. Total cash outflow for investing activities (021 do 023)			024		32.908.912	32.964.177
B1) NET INCREASE IN CASH FLOW FROM INVESTING ACTIVITIES (020-024)			025
B2) NET DECREASE IN CASH FLOW FROM INVESTING ACTIVITIES			026		29.351.253
CASH FLOW FROM FINANCIAL ACTIVITIES						28.753.843
1. Cash inflow from issuing property and debt financial instruments
2. Proceeds from the credit principal, promissory notes, borrowings and other loans			027
3. Other proceeds from financial activities			028		177.331.130	335.052.690
V. Total cash inflows from financial activities (027 to 029)			029		225.628.278	8.014.353
1. Cash outflow for repayment of credit principal and bonds			030		402.959.408	343.067.043
2. Cash outflow for dividends paid			031		207.623.058	201.153.730
3. Cash outflow for financial lease			032
4. Cash outflow for purchase of treasury shares			033		4.961.196	2.469.335
			034
5. Other cash outflow for financial activities			035		227.863.446	500.000
VI. Total cash outflow for financial activities (031 to 035)			036		440.447.700	204.123.065
C1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES			037		$\mathbf{0}$	138.943.978
C2) NET DECREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES			038		37.488.292
Total increase in cash flow (013 - 014 + 025 - 026 + 037 - 038)			039			5.717.780
Total decrease in cash flow $(014 - 013 + 026 - 025 + 038 - 037)$			040		23.780.932
Cash and cash equivalents at the beginning of the period			041		36.849.204	27.869.646
Increase of cash and cash equivalents			042		$\circ$	5.717.780
Decrease of cash and cash equivalents			043		23.780.932
Cash and cash equivalents at the end of the period			044		13.068.272	33.587.426

for the period 1.1.2017 do 30.9.2017
Item	AOP code	Last year	Current year
$\vert$ 1	$\overline{2}$	$3\phantom{a}$	$\overline{4}$
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	56.418.135
4. Retained earnings or accumulated loss	004	99.270.607	155.502.736
5. Profit or loss for the current year	005	57.514.007	$-12.708.053$
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	459.180.979
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	473.163.602	459.180.979
17 b. Attributed to minority interest	019	6.366.595	6.299.155

STATEMENT OF CHANGES IN EQUITY

Notes

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