Viro Tvornica ŠEĆERA d.d.

Quarterly Report • Feb 28, 2018

STATEMENT OF PERSON RESPONSIBLE FOR PRODUCTION OF THE CONSOLIDATED REPORT FOR 40 2017

With this statement, in compliance with article 407 and 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-XII 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 February 26, 2018

RESPONSIBLE PERSON:

PRESIDENT OF THE MANAGEMENT BOARD

Željko Zadro, dipl.oec.

TVORNICA ŠEĆERA d.d. 7

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	31.12.2017.
	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 484
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
VIRO BH d.o.o.	HRVATSKIH BRANITELJA 21, GRUDE, BIH	64-01-0029-17
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

$MAP$ $\ell$ MANICA SECERA d.d. 7

(signed by authorised person for representation)

BALANCE SHEET as at $\sqrt{31.12.2017}$ .

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) I. INTANGIBLE ASSETS (004 to 009)	002	543.336.279	522.618.376
1. Assets development	003	769.909	876.085
2. Concessions, patents, licences fees, trade and service marks, software and other rights	004
3. Goodwill	005 006	769.909	876.085
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	517.270.330
1. Land	011	38.540.921	38.750.891
2. Buildings	012	228.037.294	227.964.481
3. Plant and equipment	013	194.768.612	183.910.605
4. Tools, facility inventory and transport assets	014	2.712.606	2.540.528
5. Biological assets	015
6. Prepayments for tangible assets	016	34.576.964	34.254.275
7. Tangible assets in progress	017	35.993.969	27.879.462
8. Other tangible assets	018	44.900	44.900
9. Investments in buildings	019	2.074.669	1.925.188
III. LONG-TERM FINANCIAL ASSETS (021 to 028)	020	5.226.520	4.162.701
1. Investments (shares) with related parties	021	900.000	900.000
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	917.258
6. Loans, deposits and similar assets 7. Other long - term financial assets	026	3.415.914	2.345.443
8. Investments accounted by equity method	027
IV. RECEIVABLES (030 to 032)	028
1. Receivables from related parties	029	589.915	309.260
2. Receivables from based on trade loans	030 031
3. Other receivables	032	589.915	309.260
V. DEFERRED TAX ASSETS	033
C) SHORT TERM ASSETS (035+043+050+058)	034	928.099.253	822.072.260
I. INVENTORIES (036 to 042)	035	635.711.354	572.426.955
1. Raw-material and supplies	036	76.486.835	39.465.980
2. Work in progress	037
3. Finished goods	038	373.566.269	486.985.022
4. Merchandise	039	134.836.805	41.025.516
5. Prepayments for inventories	040	50.821.445	4.950.437
6. Long - term assets held for sales	041
7. Biological assets	042
II. RECEIVABLES (044 to 049)	043	241.144.333	158.562.687
1. Receivables from related parties	044	2.422.079	3.271.551
2. Accounts receivable	045	173.217.676	120.950.713
3. Receivables from participating parties	046
4. Receivables from employees and members of related parties	047	5.785	6.663
5. Receivables from government and other institutions 6. Other receivables	048	64.791.695	33.569.740
III. SHORT TERM FINANCIAL ASSETS (051 to 057)	049	707.098	764.020
1. Shares (stocks) in related parties	050	23.373.920	18.982.271
2. Loans given to related parties	051
3. Participating interests (shares)	052		6.694.760
4. Loans to entrepreneurs in whom the entity holds participating interests	053 054
5. Investments in securities	055
6. Loans, deposits, etc.	056	14.000.408	11.796.011
7. Other financial assets	057	9.373.512	491.500
IV. CASH AT BANK AND IN CASHIER	058	27.869.646	72.100.347
D) PREPAID EXPENSES AND ACCRUED REVENUE	059	11.332.940	3.202.643
E) TOTAL ASSETS (001+002+034+059)	060	1.482.768.472	1.347.893.279
F) OFF-BALANCE RECORDS	061	1.739.081.455 1.448.792.590

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	398.863.646
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	56.417.086
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	17.456
IV. REVALUATION RESERVES	071
V. RETAINED EARNINGS OR ACCUMULATED LOSS (073-074)	072	99.270.607	155.502.892
1. Retained earnings	073	99.270.607	155.502.892
2. Accumulated loss	074
VI. PROFIT/LOSS FOR THE CURRENT YEAR (076-077)	075	57.514.007	$-79.156.734$
1. Profit for the current year	076	57.514.007
2. Loss for the current year	077		79.156.734
IX. MINORITY INTERESTS	078	6.366.595
B) PROVISIONS (080 to 082)	079	453.209	6.132.241
1. Provisions for pensions, severance pay, and similar liabilities	080		453.209
2. Reserves for tax liabilities
3. Other reserves	081
C) LONG - TERM LIABILITIES (084 to 092)	082	453.209	453.209
1. Liabilities to related parties	083	243.460.737	169.068.573
2. Liabilities for loans, deposits etc.	084
3. Liabilities to banks and other financial institutions	085	1.936.506	945.496
4. Liabilities for received prepayments	086	241.447.754	168.123.077
5. Accounts payable	087
6. Liabilities arising from debt securities	088
	089
7. Liabilities to entrepreneurs in whom the entity holds participating interests	090
8. Other long-term liabilities	091	76.477
9. Deferred tax liability	092
D) SHORT - TERM LIABILITIES (094 to 105)	093	755.547.863	763.877.292
1. Liabilities to related parties	094	35.000	2.175
2. Liabilities for loans, deposits etc.	095	12.921.646	13.307.341
3. Liabilities to banks and other financial institutions	096	202.505.024	374.102.814
4. Liabilities for received prepayments	097	1.675.462	21.271.550
5. Accounts payable	098	419.205.766	306.020.326
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	3.379.307
9. Liabilities for taxes, contributions and similar fees	102	4.916.880	7.991.230
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	37.771.586
E) DEFFERED SETTLEMENTS OF CHARGES AND INCOME DEFERRED TO FUTURE PERIOD	106	3.776.466	15.630.559
F) TOTAL - CAPITAL AND LIABILITIES (062+079+083+093+106)	107	1.482.768.472	1.347.893.279
G) OFF-BALANCE RECORDS	108	1.739.081.455	1.448.792.590
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	392.731.405
2. Attributed to minority interest	110	6.366.595	6.132.241

PROFIT AND LOSS ACCOUNT for the period 01.01.2017. do 31.12.2017.

Item		Last year		Current year
$\overline{\mathbf{1}}$	$\overline{2}$	Comulative $\overline{\mathbf{3}}$	Quartely $\overline{4}$	Comulative $5\overline{5}$	Quartely
OPERATING REVENUE (112+113)	111	1.175.314.593	629.328.868	1.036.554.832	6 255.498.420
1. Sales revenue	112	1.164.848.253	626.984.522	1.020.907.676	246.602.845
2. Other operating revenues	113	10.466.340	2.344.346	15.647.156	8.895.575
II. OPERATING EXPENSES (115+116+120+124+125+126+129+130)	114	1.096.569.697	551.187.853	1.113.524.488	327.965.507
1. Changes in value of work in progress and finished products	115	$-168.090.768$	$-186.392.200$	$-115.783.700$	$-130.268.257$
2. Material costs (117 to 119) a) Raw material and material costs	116	1.111.580.352	688.998.213	1.067.360.210	405.434.775
b) Costs of goods sold	117	866.493.278	635.895.719	705.355.439	357.354.693
c) Other external costs	118	188.191.649	35.310.264	289.953.633	24.753.523
3. Staff costs (121 to 123)	119	56.895.425	17.792.230	72.051.138	23.326.559
a) Net salaries and wages	120	52.056.447	14.503.420	57.281.722	15.798.554
b) Cost for taxes and contributions from salaries	121 122	32.421.036	9.086.513	36.151.010	10.017.796
c) Contributions on gross salaries	123	12.055.312 7.580.099	3.305.953	12.946.660	3.543.744
4. Depreciation	124	58.326.794	2.110.954	8.184.052	2.237.014
5. Other costs	125	26.097.598	13.771.973 7.262.057	55.628.465 25.539.034	14.131.633
6. Impairment (127+128)	126	$\Omega$	$-55.218$	8.306.520	4.974.845
a) Impairment of long-term assets (financial assets excluded)	127				8.306.520
b) Impairment of short - term assets (financial assets excluded)	128		$-55.218$	8.306.520	8.306.520
7. Provisions	129
8. Other operating costs	130	16.599.274	13.099.608	15.192.237	9.587.437
III. FINANCIAL INCOME (132 to 136)	131	13.261.643	2.575.037	39.000.321	15.949.546
1. Interest income, foreign exchange gains, dividends and similar income from related parties povezanim poduzetnicima	132	62.153	$-60,830$	762.239	164.465
2. Interest income, foreign exchange gains, dividends and similar income from non - related	133	12.601.552	2.586.285	14.736.230	475.079
3. Share in income from affiliated entrepreneurs and participating interests	134
4. Unrealized gains (income) from financial assets	135	535.190	35.190	49.500	49.500
5. Other financial income	136	62.748	14.392	23.452.352	15.260.502
IV. FINANCIAL EXPENSES (138 do 141)	137	34.471.814	12.873.042	41.421.601	10.097.901
1. Interest expenses, foreign exchange losses, dividends and similar expenses from related	138			706.126	17.078
2. Interest expenses, foreign exchange losses, dividends and similar expenses from non -	139	32.154.753	11.038.102	38.562.884	10.077.868
3. Unrealized losses (expenses) on financial assets	140	1.020.990	648.490	2.898	2.898
4. Other financial expenses	141	1.296.071	1.186.450	2.149.693	57
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) X. TOTAL EXPENSES (114+137+143 + 145)	146	1.188.576.236	631.903.905	1.075.555.153	271.447.966
XI. PROFIT OR LOSS BEFORE TAXATION (146-147)	147	1.131.041.511	564.060.895	1.154.946.089	338.063.408
1. Profit before taxation (146-147)	148	57.534.725	67.843.010	$-79.390.936$	$-66.615.442$
2. Loss before taxation (147-146)	149	57.534.725	67.843.010	$\Omega$
XII. PROFIT TAX	150	$\overline{0}$	$\Omega$	79.390.936	66.615.442
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151)	151	$\circ$	$\mathbf 0$	$\circ$
1. Profit for the period (149-151)	152	57.534.725	67.843.010	-79.390.936	$-66.615.442$
2. Loss for the period (151-148)	153	57.534.725	67.843.010	$\circ$
APPENDIX to P&L account (to be filled in by entrepreneur that prepares consolidated financial report)	154	$\overline{0}$	$\circ$	79.390.936	66.615.442
XIV. PROFIT OR LOSS FOR THE PERIOD
1. Attributed to equity holders of parent company	155	57.514.007
2. Attributed to minority interest	156	20.718	67.803.502	-79.156.734	$-66.448.681$
STATEMENT OF OTHER COMPREHENSIVE INCOME (IFRS)			39.508	$-234.202$	$-166.761$
I. PROFIT OR LOSS FOR THE PERIOD (= 152)	157	57.534.725	67.843.010	-79.390.936
II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAX (159 do 165)	158	$\mathbf 0$	0	$\mathbf 0$	$-66.615.442$
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	0	$\Omega$	0
V. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (157+167)	168	57.534.725	67.843.010	-79.390.936	$-66.615.442$
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	57.514.007	67.803.502	$-79.156.734$	$-66.448.681$
2. Attributed to minority interest	170	20.718	39.508	$-234.202$	$-166.761$

for the period	1.1.2017	do	31.12.2017
Item			AOP code	Last year	Current year
1			$\overline{2}$	$\mathbf{3}$	$\boldsymbol{A}$
CASH FLOW FROM OPERATING ACTIVITIES
1. Profit before tax			001	57.534.725	$-79.390.936$
2. Depreciation			002	58.326.794	55.628.465
3. Increase in short term liabilities			003	275.224.166	17.828.607
4. Decrease in short term receivables			004		50.153.200
5. Decrease in inventories			005	34.320.046	228.221.927
6. Other increase in cash flow			006	20.748.920	6.115.220
I. Total increase in cash flow from operating activities (001 to 006)			007	446.154.651	278.556.483
1. Decrease in short term liabilities			008		132.918.349
2. Increase in short term receivables			009	29.279.296
3. Increase in inventories			010	255.419.802	166.212.097
4. Other decrease in cash flow			011	6.704.302
II. Total decrease in cash flow from operating activities (008 to 011)			012	291.403.400	299.130.446
A1) NET INCREASE IN CASH FLOW FROM OPERATING ACTIVITIES			013	154.751.251
A2) NET DECREASE IN IN CASH FLOW FROM OPERATING ACTIVITIES			014	0	20.573.963
CASH FLOW FROM INVESTING ACTIVITIES
1. Cash inflows from sales of long-term tangible and intangible assets			015	217.805	162.862
2. Cash inflows from sales of equity and debt instruments			016
3. Interests receipts			017	1.679.568	3.913.878
4. Dividend receipts			018	56.703	77.328
5. Other cash inflows from investing activities			019	34.051.783	39.246.479
III. Total cash inflows from investing activities (015 to 019)			020	36.005.859	43.400.547
1. Cash outflow for purchase of long-term tangible and intangible assets			021	69.908.838	36.417.903
2. Cash outflow for acquisition of equity and debt financial instruments			022
3. Other cash outflow for investing activities			023	6.204.350	5.112.305
IV. Total cash outflow for investing activities (021 do 023)			024	76.113.188	41.530.208
B1) NET INCREASE IN CASH FLOW FROM INVESTING ACTIVITIES (020-024)			025	0	1.870.339
B2) NET DECREASE IN CASH FLOW FROM INVESTING ACTIVITIES			026	40.107.329
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	258.582.572	494.803.446
3. Other proceeds from financial activities			029	248.625.962	8.073.669
V. Total cash inflows from financial activities (027 to 029)			030	507.208.534	502.877.115
1. Cash outflow for repayment of credit principal and bonds			031	346.764.139	434.531.763
2. Cash outflow for dividends paid			032
3. Cash outflow for financial lease			033	5.977.777	2.728.635
4. Cash outflow for purchase of treasury shares			034
5. Other cash outflow for financial activities			035	278.090.098	2.682.392
VI. Total cash outflow for financial activities (031 to 035)			036	630.832.014	439.942.790
C1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES			037	0	62.934.325
C2) NET DECREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES			038	123.623.480
Total increase in cash flow (013 - 014 + 025 - 026 + 037 - 038)			039		44.230.701
Total decrease in cash flow $(014 - 013 + 026 - 025 + 038 - 037)$			040	8.979.558
Cash and cash equivalents at the beginning of the period			041	36.849.204	27.869.646
Increase of cash and cash equivalents			042		44.230.701
Decrease of cash and cash equivalents			043	8.979.558
Cash and cash equivalents at the end of the period			044	27.869.646	72.100.347

STATEMENT OF CASH FLOWS - INDIRECT METHOD

Item	AOP code	Last year	Current year
$\blacktriangleleft$	$\overline{2}$	3 2	$\overline{4}$
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	56.417.086
4. Retained earnings or accumulated loss	004	99.448.839	155,502.892
5. Profit or loss for the current year	005	57.514.007	$-79.156.734$
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	473.341.834	392.731.405
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	473.341.834	392.731.405
17 b. Attributed to minority interest	019	6.188.363	6.132.241

$\widetilde{\mathbf{y}}$

STATEMENT OF CHANGES IN EQUITY for the period 1.1.2017 do 31.12.2017