Viro Tvornica ŠEĆERA d.d.

Quarterly Report • Feb 28, 2018

STATEMENT OF PERSON RESPONSIBLE FOR PRODUCTION OF THE THREE-MONTH REPORT FOR 4Q 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-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 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 February 21, 2018

Darko Krstić, Member of the Menagement Bord

RESPONSIBLE PERSON

PRESIDENT OF THE MANAGEMENT BOARD:

Željko Zadro, dipl.oec

Ivo Rešić, Member of the Menagement Bord

Appendix 1 Reporting period:	1.1.2017 31.12.2017 to
	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 GRAD ZAGREB 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

TVORNICA ŠEĆERA d.d. $\overline{A}$ (signed by authorised person for representation)

BALANCE SHEET
as at $\begin{array}{|c|c|} \hline 31.12.2017 \\hline \end{array}$

Item		Last year (net)	Current year (net)
$\mathbf{1}$	$\overline{2}$	$\mathbf{3}$	$\overline{4}$
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	749.273.897	694.289.132
1. Assets development	003 004	136.740	515.755
2. Concessions, patents, licences fees, trade and service marks, software and other rights	005	136.740	515.755
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	158.329.860
1. Land	011	5.548.592	5.548.592
2. Buildings	012	68.340.805	62.595.526
3. Plant and equipment	013	66.153.617	49.960.898
4. Tools, facility inventory and transport assets	014
5. Biological assets	015
6. Prepayments for tangible assets	016	34.576.964	34.254.275
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	1.925.188
III. LONG-TERM FINANCIAL ASSETS (021 to 028)	020	569.147.129	535.443.517
1. Investments (shares) with related parties	021	419.450.043	419.833.409
2. Loans given to related parties	022	149.216.583	115.338.105
3. Participating interest (shares)	023
4. Loans to entrepreneurs in whom the entity holds participating interests 5. Investments in securities	024
6. Loans, deposits and similar assets	025	3.248	13.848
7. Other long - term financial assets	026	477.255	258.155
8. Investments accounted by equity method	027
IV. RECEIVABLES (030 to 032)	028 029	$\mathbf 0$
1. Receivables from related parties	030		$\mathbf 0$
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	569.937.185
I. INVENTORIES (036 to 042)	035	434.941.674	203.906.899
1. Raw-material and supplies	036	55.191.037	15.746.982
2. Work in progress	037
3. Finished goods	038	213.847.092	155.199.588
4. Merchandise	039	116.054.925	28.464.973
5. Prepayments for inventories	040	49.848.620	4.495.356
6. Long - term assets held for sales	041
7. Biological assets	042
II. RECEIVABLES (044 to 049)	043	184.412.623	139.705.158
1. Receivables from related parties	044	1.259.876	45.106.773
2. Accounts receivable	045	133.612.862	84.776.769
3. Receivables from participating parties	046
4. Receivables from employees and members of related parties	047	890	759
5. Receivables from government and other institutions	048	49.421.570	9.664.925
6. Other receivables	049	117.425	155.932
III. SHORT TERM FINANCIAL ASSETS (051 to 057)	050	26.687.789	163.641.994
1. Shares (stocks) in related parties	051
2. Loans given to related parties	052	4.681.963	152.546.575
3. Participating interests (shares)	053
4. Loans to entrepreneurs in whom the entity holds participating interests 5. Investments in securities	054
	055
6. Loans, deposits, etc. 7. Other financial assets	056	12.632.314	10.695.919
IV. CASH AT BANK AND IN CASHIER	057	9.373.512	399.500
D) PREPAID EXPENSES AND ACCRUED REVENUE	058	22.411.336	62.683.134
E) TOTAL ASSETS (001+002+034+059)	059	5.501.947	1.503.946
F) OFF-BALANCE RECORDS	060	1.423.229.266	1.265.730.263
	061	291.648.942	120.241.416

Item	AOP code	Last year (net)	Current year (net)
$\overline{\mathbf{1}}$	$\overline{2}$	3	$\overline{4}$
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	665.899.638	608.611.105
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	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	$-57.288.533$
1. Profit for the current year	076	37.232.143
2. Loss for the current year	077		57.288.533
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	157.643.945
1. Liabilities to related parties	084
2. Liabilities for loans, deposits etc.	085	1.375.750	572.633
3. Liabilities to banks and other financial institutions	086	228.213.597	157.071.312
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	499.168.562
1. Liabilities to related parties	094	30.738.212	5.174.487
2. Liabilities for loans, deposits etc.	095	7.443.244	12.999.841
3. Liabilities to banks and other financial institutions	096	101.174.511	259.345.545
4. Liabilities for received prepayments	097	1.302.698	13.553.903
5. Accounts payable	098	313.719.185	162.866.590
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	1.427.626
9. Liabilities for taxes, contributions and similar fees	102	2.101.273	6.566.560
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	37.203.047
E) DEFFERED SETTLEMENTS OF CHARGES AND INCOME DEFERRED TO FUTURE PERIOD	106	181.880	306.651
F) TOTAL - CAPITAL AND LIABILITIES (062+079+083+093+106)	107	1.423.229.266	1.265.730.263
G) OFF-BALANCE RECORDS	108	291.648.942	120.241.416
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 31.12.2017.

VIRO TVORNICA ŠEĆERA d.d.

Item		Last year		Current year
		Comulative	Quartely	Comulative	Quartely
$\mathbf{1}$	$\overline{2}$	3	$\overline{4}$	5	6
. OPERATING REVENUE (112+113)	111	700.509.756	357.913.815	853.347.037	205.538.709
1. Sales revenue	112	696.989.106	356.312.911	847.561.040	202.655.000
2. Other operating revenues II. OPERATING EXPENSES (115+116+120+124+125+126+129+130)	113	3.520.650	1.600.904	5.785.997	2.883.709
1. Changes in value of work in progress and finished products	114	656.350.120	320.602.802	924.868.139	266.172.797
i and finished products	115	$-138.523.037$	$-82.897.367$	51.579.918	$-17.504.955$
2. Material costs (117 to 119)	116	725.178.607	382.045.364	792.713.851	252.312.858
a) Raw material and material costs	117	510.624.754	335.806.332	445.959.970	196.407.734
b) Costs of goods sold	118	181.160.920	37.442.516	299.118.195	41.939.572
c) Other external costs	119	33.392.933	8.796.516	47.635.686	13.965.552
3. Staff costs (121 to 123)	120	21.966.324	6.185.503	24.927.334	7.178.735 4.529.475
a) Net salaries and wages b) Cost for taxes and contributions from salaries	121 122	13.578.823 5.194.585	3.850.366 1.439.383	15.630.214 5.792.476	1.652.205
c) Contributions on gross salaries	123	3.192.916	895.754	3.504.644	997.055
4. Depreciation	124	28.759.248	6.574.580	26.285.861	6.558.995
5. Other costs	125	10.773.515	2.736.376	11.454.070	2.689.103
6. Impairment (127+128)	126	$\Omega$	$\mathbf{0}$	8.306.520	8.306.520
a) Impairment of long-term assets (financial assets excluded)	127
b) Impairment of short - term assets (financial assets excluded)	128			8.306.520	8.306.520
7. Provisions	129
8. Other operating costs	130	8.195.463	5.958.346	9.600.585	6.631.541
III. FINANCIAL INCOME (132 to 136)	131	13.825.221	4.127.499	45.085.414	18.280.477
1. Interest income, foreign exchange gains, dividends and similar income from related	132	2.804.648	2.105.806	8.405.017	2.664.121
parties 2. Interest income, foreign exchange gains, dividends and similar income from non - related	133	10.520.573	2.021.693	13.296.540	323.766
parties and other entities
3. Share in income from affiliated entrepreneurs and participating interests	134				49.500
4. Unrealized gains (income) from financial assets 5. Other financial income	135 136	500.000		49.500 23.334.357	15.243.090
IV. FINANCIAL EXPENSES (138 do 141)	137	20.752.714	7.063.143	30.852.845	6.847.715
1. Interest expenses, foreign exchange losses, dividends and similar expenses from related	138	2.957.899		3.833.794	104.223
parties 2. Interest expenses, foreign exchange losses, dividends and similar expenses from non -
related parties and other entities	139	17.292.315	6.933.142	25.605.471	6.743.492
3. Unrealized losses (expenses) on financial assets	140	502.500	130.000
4. Other financial expenses	141			1.413.580
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	145 146	714.334.977	362.041.314	898.432.451	223.819.186
IX. TOTAL INCOME (111+131+142 + 144) X. TOTAL EXPENSES (114+137+143 + 145)	147	677.102.834	327.665.945	955.720.984	273.020.512
XI. PROFIT OR LOSS BEFORE TAXATION (146-147)	148	37.232.143	34.375.369	$-57.288.533$	$-49.201.326$
1. Profit before taxation (146-147)	149	37.232.143	34.375.369	$\circ$	$\circ$
2. Loss before taxation (147-146)	150	U		57.288.533	49.201.326
XII. PROFIT TAX	151
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151)	152	37.232.143	34.375.369	$-57.288.533$	-49.201.326
1. Profit for the period (149-151)	153	37.232.143	34.375.369	$\circ$	$\mathbf{0}$
2. Loss for the period (151-148)	154	$\circ$	$\overline{0}$	57.288.533	49.201.326
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)
I. PROFIT OR LOSS FOR THE PERIOD (= 152)	157	37.232.143	34.375.369	$-57.288.533$	$-49.201.326$
II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAX (159 do 165)	158	$\mathbf{0}$	$\mathbf{0}$	$\mathbf{0}$	$\mathbf{0}$
1. Exchange differences on translation of foreign operations	159
2. Movements in revaluation reserves of long - term tangible and intangible assets	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	164 165
7. Actuarial gains / losses on defined benefit plans	166
III. TAX ON OTHER COMPREHENSIVE INCOME FOR THE PERIOD IV. NET OTHER COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (158-166)	167	$\overline{0}$	0	$\mathbf{0}$
V. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (157+167)	168	37.232.143	34.375.369	$-57.288.533$	$-49.201.326$
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	31.12.2017
Item			AOP code	Last year	Current year
1			$\overline{2}$	3	4
CASH FLOW FROM OPERATING ACTIVITIES
1. Profit before tax			001	37.232.143	$-57.288.533$
2. Depreciation			002	28.759.248	26.285.861
3. Increase in short term liabilities			003	218.992.477
4. Decrease in short term receivables			004	19.807.017	44.707.465
5. Decrease in inventories			005		231.034.775
6. Other increase in cash flow			006	20.666.901	4.122.772
I. Total increase in cash flow from operating activities (001 to 006)			007	325.457.786	248.862.340
1. Decrease in short term liabilities			008		197.286.293
2. Increase in short term receivables			009
3. Increase in inventories			010	255.419.802
4. Other decrease in cash flow			011	6.114.639	143.167.576
II. Total decrease in cash flow from operating activities (008 to 011)			012	261.534.441	340.453.869
A1) NET INCREASE IN CASH FLOW FROM OPERATING ACTIVITIES AKTIVNOSTI (007-012) A2) NET DECREASE IN IN CASH FLOW FROM OPERATING ACTIVITIES			013	63.923.345
AKTIVNOSTI (012-007)			014		91.591.529
CASH FLOW FROM INVESTING ACTIVITIES
1. Cash inflows from sales of long-term tangible and intangible assets			015	217.805	116.182
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	34.039.033	39.199.285
III. Total cash inflows from investing activities (015 to 019)			020	35.993.109	43.306.673
1. Cash outflow for purchase of long-term tangible and intangible assets			021	40.711.291	5.120.890
2. Cash outflow for acquisition of equity and debt financial instruments			022
3. Other cash outflow for investing activities			023	5.777.533	5.495.673
IV. Total cash outflow for investing activities (021 do 023)			024	46.488.824	10.616.563
B1) NET INCREASE IN CASH FLOW FROM INVESTING ACTIVITIES (020-024) B2) NET DECREASE IN CASH FLOW FROM INVESTING ACTIVITIES			025 026	10.495.715	32.690.110
AKTIVNOSTI (024-020) 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	177.339.572	319.727.993
3. Other proceeds from financial activities			029	247.628.278	8.000.000
V. Total cash inflows from financial activities (027 to 029)			030	424.967.850	327.727.993
1. Cash outflow for repayment of credit principal and bonds			031	212.228.499	225.326.141
2. Cash outflow for dividends paid			032
3. Cash outflow for financial lease			033	5.977.777	2.728.635
			034
4. Cash outflow for purchase of treasury shares
5. Other cash outflow for financial activities VI. Total cash outflow for financial activities (031 to 035)			035	244.780.147	500.000 228.554.776
C1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES			036 037	462.986.423	99.173.217
AKTIVNOSTI (030-036) C2) NET DECREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES
AKTIVNOSTI (036-030)			038	38.018.573
Total increase in cash flow (013 - 014 + 025 - 026 + 037 - 038)			039	15.409.057	40.271.798
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	15.409.057	40.271.798
Decrease of cash and cash equivalents			043	$\circ$	$\mathbf{0}$
Cash and cash equivalents at the end of the period			044	22.411.336	62.683.134

STATEMENT OF CASH FLOWS - INDIRECT METHOD

Item	AOP code	Last year	Current year
$\mathbf{1}$	$\mathbf{2}$	3	$\overline{4}$
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	56.346.673	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	$-57.288.533$
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	608.611.105
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	$\circ$	$\Omega$
17 a. Attributed to equity holders of parent company	018
17 b. Attributed to minority interest	019

STATEMENT OF CHANGES IN EQUITY for the period 1.1.2017 do 31.12.2017

Notes

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