Viro Tvornica ŠEĆERA d.d.

Quarterly Report • Oct 31, 2017

STATEMENT OF PERSON RESPONSIBLE FOR PRODUCTION OF THE THREE-MONTH REPORT FOR 30 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 ŠEĆERA d.d., Zagreb 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 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 October 25, 2017

VORNICA ŠEĆERA d.d.
ZAGREB

RESPONSIBLE PERSON

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	30.9.2017
	Quarterly Financial Report - TFI-POD
Registration number (MB) 01650971
Identification number of subject (MBS) 010049135
Personal identification number 04525204420 (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
Code and county name 21	GRAD ZAGREB			Number of employees	211
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
Phone number: 033840122	(fill in only surname and name of contact person)			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

• 1. Statement of responsible persons for preparation of financial statements
     3. Report of the Management Board on position of the Company

GD $\mathcal{L}$ V $\ell$ TVORNICA ŠEĆERA d.d. 4

(signed by authorised person for representation)

$\overline{6}$

Item	AOP code	Last year (net)	Current year (net)
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	749.273.897	708.758.966
I. INTANGIBLE ASSETS (004 to 009) 1. Assets development	003	136.740	555.463
2. Concessions, patents, licences fees, trade and service marks, software and other rights	004
3. Goodwill	005 006	136.740	555.463
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	164.635.901
1. Land	011	5.548.592	5.548.592
2. Buildings	012	68.340.805	64.162.989
3. Plant and equipment	013	66.153.617	54.737.479
4. Tools, facility inventory and transport assets	014
5. Biological assets	015
6. Prepayments for tangible assets	016	34.576.964	34.178.902
7. Tangible assets in progress	017	3.286.081	4.036.081
8. Other tangible assets	018	9.300	9.300
9. Investments in buildings	019	2.074.669	1.962.558
III. LONG-TERM FINANCIAL ASSETS (021 to 028)	020	569.147.129	543.567.602
1. Investments (shares) with related parties 2. Loans given to related parties	021	419.450.043	419.832.565
3. Participating interest (shares)	022	149.216.583	123.068.952
4. Loans to entrepreneurs in whom the entity holds participating interests	023
5. Investments in securities	024
6. Loans, deposits and similar assets	025 026	3.248	13.757
7. Other long - term financial assets	027	477.255	652.328
8. Investments accounted by equity method	028
IV. RECEIVABLES (030 to 032)	029	0	O
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	738.597.012
I. INVENTORIES (036 to 042)	035	434.941.674	289.187.451
1. Raw-material and supplies	036	55.191.037	50.286.870
2. Work in progress	037		63.400.881
3. Finished goods 4. Merchandise	038	213.847.092	82.633.977
5. Prepayments for inventories	039	116.054.925	34.349.347
6. Long - term assets held for sales	040	49.848.620	58.516.376
7. Biological assets	041
II. RECEIVABLES (044 to 049)	042
1. Receivables from related parties	043 044	184.412.623	228.495.003
2. Accounts receivable	045	1.259.876	5.543.889
3. Receivables from participating parties	046	133.612.862	205.901.076
4. Receivables from employees and members of related parties	047	890	1.303
5. Receivables from government and other institutions	048	49.421.570	16.910.927
6. Other receivables	049	117.425	137.808
III. SHORT TERM FINANCIAL ASSETS (051 to 057)	050	26.687.789	189.391.916
1. Shares (stocks) in related parties	051
2. Loans given to related parties	052	4.681.963	176.210.126
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	12.312.190
7. Other financial assets	057	9.373.512	869.600
IV. CASH AT BANK AND IN CASHIER	058	22.411.336	31.522.642
D) PREPAID EXPENSES AND ACCRUED REVENUE	059	5.501.947	1.127.811
E) TOTAL ASSETS (001+002+034+059) F) OFF-BALANCE RECORDS	060	1.423.229.266	1.448.483.789
	061	291.648.942	169.397.834

BALANCE SHEET
as at $\sqrt{\frac{30.912017}{100}}$

code (net) $\overline{\mathbf{1}}$ $\overline{\mathbf{3}}$ $\overline{2}$ $\boldsymbol{A}$ A) CAPITAL AND RESERVES (063+064+065+071+072+075+078) 062 665.899.638 657.812.431 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 $-8.087.207$ 1. Profit for the current year 076 37.232.143 2. Loss for the current year 077 8.087.207 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) 083 229.589.347 174.946.535 1. Liabilities to related parties 084 2. Liabilities for loans, deposits etc. 085 1.375.750 806.876 3. Liabilities to banks and other financial institutions 086 228.213.597 174.139.659 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) 093 527.558.401 615.494.460 1. Liabilities to related parties 094 30.738.212 7.204.932 2. Liabilities for loans, deposits etc. 095 7.443.244 13.021.454
3. Liabilities to banks and other financial institutions 096 101.174.511 283.357.401
4. Liabilities for received prepayments 097 1.302.698 16.502.036
5. Accounts payable 098 313.719.185 255.065.685
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 1.624.564
9. Liabilities for taxes, contributions and similar fees 102 2.101.273 974.328
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 37.713.097
E) DEFFERED SETTLEMENTS OF CHARGES AND INCOME DEFERRED TO FUTURE PERIOD 106 181.880 230.363
F) TOTAL - CAPITAL AND LIABILITIES (062+079+083+093+106) 107 1.423.229.266 1.448.483.789
G) OFF-BALANCE RECORDS 108 291.648.942
169.397.834 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 30.09.2017.

VIRO TVORNICA ŠEĆERA d.d. administration and a construction of the construction of the construction of the construction of the construction of the construction of the construction of the construction of the construction

Item	AOP Last year code		Current year
$\overline{\mathbf{1}}$		Comulative	Quartely	Comulative	Quartely
I. OPERATING REVENUE (112+113)	$\mathbf{2}$ 111	3 342.595.941	z 150.018.978	6 647.808.328	6
1. Sales revenue	112	340.676.195	149.349.900	644.906.040	223.134.167 221.306.095
2. Other operating revenues	113	1.919.746	669.078	2.902.288	1.828.072
II. OPERATING EXPENSES (115+116+120+124+125+126+129+130)	114	335.747.318	142.877.876	658.695.342	237.859.174
1. Changes in value of work in progress and finished products i and finished products	115	$-55.625.670$	6.513.207	69.084.873	$-13.691.588$
2. Material costs (117 to 119)	116	343.133.243	120.615.269	540.400.993	235.335.823
a) Raw material and material costs	117	174.818.422	61.620.018	249.552.236	152.800.682
b) Costs of goods sold	118	143.718.404	50.838.437	257.178.623	67.944.149
c) Other external costs	119	24.596.417	8.156.814	33.670.134	14.590.992
3. Staff costs (121 to 123)	120	15,780.821	5.478.390	17.748.599	6.135.797
a) Net salaries and wages	121	9.728.457	3.379.746	11.100.739	3.857.016
b) Cost for taxes and contributions from salaries	122	3.755.202	1.307.418	4.140.271	1.414.179
c) Contributions on gross salaries 4. Depreciation	123	2.297.162	791.226	2.507.589	864.602
5. Other costs	124	22.184.668	7.428.188	19.726.866	6.607.010
6. Impairment (127+128)	125	8.037.139	2.479.366	8.764.967	2.672.052
a) Impairment of long-term assets (financial assets excluded)	126 127	0		$\bf{0}$	$\mathbf{0}$
b) Impairment of short - term assets (financial assets excluded)	128
7. Provisions	129
8. Other operating costs	130	2.237.117	363.456	2.969.044	800.080
III. FINANCIAL INCOME (132 to 136)	131	9.697.722	1.450.040	26.804.937	6.577.406
1. Interest income, foreign exchange gains, dividends and similar income from related	132	698.842	530.973
parties 2. Interest income, foreign exchange gains, dividends and similar income from non - related	133	8.498.880	919.067	5.740.896 12.972.774	4.322.059 1.528.932
parties and other entities 3. Share in income from affiliated entrepreneurs and participating interests
4. Unrealized gains (income) from financial assets	134
5. Other financial income	135 136	500.000
IV. FINANCIAL EXPENSES (138 do 141)	137	13.689.571	3.497.317	8.091.267 24.005.130	726.415 11.554.531
1. Interest expenses, foreign exchange losses, dividends and similar expenses from related
parties 2. Interest expenses, foreign exchange losses, dividends and similar expenses from non -	138 139	2.957.898	116.935	3.729.571	84.830
related parties and other entities		10.359.173	3.007.882	18.861.979	10.056.121
3. Unrealized losses (expenses) on financial assets 4. Other financial expenses	140	372.500	372.500
V. INCOME FROM INVESTMENT - SHARE IN PROFIT OF ASSOCIATED ENTREPRENEURS	141			1.413.580	1.413.580
VI. LOSS FROM INVESTMENT - SHARE IN LOSS OF ASSOCIATED ENTREPRENEURS	142 143
VII. EXTRAORDINARY - OTHER INCOME	144
VIII. EXTRAORDINARY - OTHER EXPENSES	145
IX. TOTAL INCOME (111+131+142 + 144)	146	352.293.663	151.469.018	674.613.265	229.711.573
X. TOTAL EXPENSES (114+137+143 + 145)	147	349.436.889	146.375.193	682.700.472	249.413.705
XI. PROFIT OR LOSS BEFORE TAXATION (146-147)	148	2.856.774	5.093.825	$-8.087.207$	$-19.702.132$
1. Profit before taxation (146-147)	149	2.856.774	5.093.825	O.
2. Loss before taxation (147-146)	150	0	0	8.087.207	19.702.132
XII. PROFIT TAX XIII. PROFIT OR LOSS FOR THE PERIOD (148-151)	151
1. Profit for the period (149-151)	152	2.856.774	5.093.825	$-8.087.207$	-19.702.132
2. Loss for the period (151-148)	153 154	2.856.774	5.093.825	$\mathbf 0$
APPENDIX to P&L account (to be filled in by entrepreneur that prepares consolidated financial report)				8.087.207	19.702.132
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	2.856.774	5.093.825	$-8.087.207$	-19.702.132
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 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	162 163
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	O	$\mathbf{0}$	$\Omega$
V. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (157+167)	168	2.856.774	5.093.825	$-8.087.207$	$-19.702.132$
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	30.9.2017
Item			AOP code	Last year	Current year
CASH FLOW FROM OPERATING ACTIVITIES			$\overline{2}$	3	4
1. Profit before tax
2. Depreciation			001	2.856.774	$-8.087.207$
3. Increase in short term liabilities			002	22.184.668	19.726.866
4. Decrease in short term receivables			003	121.914.385
5. Decrease in inventories			004	44.239.455
6. Other increase in cash flow			005		145.754.223
I. Total increase in cash flow from operating activities (001 to 006)			006	10.360.265	4.422.619
1. Decrease in short term liabilities			007	201.555.547	161.816.501
2. Increase in short term receivables			008		106.909.871
3. Increase in inventories			009		44.082.380
4. Other decrease in cash flow			010	133.029.328
II. Total decrease in cash flow from operating activities (008 to 011)			011	47.194.449	166.175.806
A1) NET INCREASE IN CASH FLOW FROM OPERATING ACTIVITIES			012	180.223.777	317.168.057
AKTIVNOSTI (007-012) A2) NET DECREASE IN IN CASH FLOW FROM OPERATING ACTIVITIES			013	21.331.770
AKTIVNOSTI (012-007)			014		155.351.556
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	331.285	631.114
4. Dividend receipts			018		77.328
5. Other cash inflows from investing activities			019	2.107.434	29.526.802
III. Total cash inflows from investing activities (015 to 019)			020	2.438.719	30.311.286
1. Cash outflow for purchase of long-term tangible and intangible assets			021	6.800.983	4.867.504
2. Cash outflow for acquisition of equity and debt financial instruments			022
3. Other cash outflow for investing activities			023	2.901.394	3.947.275
IV. Total cash outflow for investing activities (021 do 023)			024	9.702.377	8.814.779
B1) NET INCREASE IN CASH FLOW FROM INVESTING ACTIVITIES (020-024) B2) NET DECREASE IN CASH FLOW FROM INVESTING ACTIVITIES			025		21.496.507
AKTIVNOSTI (024-020) CASH FLOW FROM FINANCIAL ACTIVITIES			026	7.263.658
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	276.640.848
V. Total cash inflows from financial activities (027 to 029)			029	225.628.278	8.000.000
1. Cash outflow for repayment of credit principal and bonds			030	402.959.408	284.640.848
2. Cash outflow for dividends paid			031	184.695.559	138.705.158
3. Cash outflow for financial lease			032
4. Cash outflow for purchase of treasury shares			033	4.961.196	2.469.335
5. Other cash outflow for financial activities			034
VI. Total cash outflow for financial activities (031 to 035)			035	223.725.147	500.000
C1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES			036	413.381.902	141.674.493
AKTIVNOSTI (030-036) C2) NET DECREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES			037		142.966.355
AKTIVNOSTI (036-030)			038	10.422.494
Total increase in cash flow (013 - 014 + 025 - 026 + 037 - 038)			039	3.645.618	9.111.306
Total decrease in cash flow $(014 - 013 + 026 - 025 + 038 - 037)$			040
Cash and cash equivalents at the beginning of the period			041	7.002.279	22.411.336
Increase of cash and cash equivalents			042	3.645.618	9.111.306
Decrease of cash and cash equivalents			043
Cash and cash equivalents at the end of the period			044	10,647.897	31.522.642

STATEMENT OF CASH FLOWS - INDIRECT METHOD

for the period 1.1.2017 30.9.2017 do
Item	AOP code	Last year	Current year
$\mathbf{1}$	2	3	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	$-8.087.207$
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	657.812.431
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