Viro Tvornica ŠEĆERA d.d.

Quarterly Report • Apr 30, 2018

STATEMENT OF PERSON RESPONSIBLE FOR PRODUCTION OF THE CONSOLIDATED REPORT FOR 1Q 2018

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-III 2018, 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 April 25, 2018

RESPONSIBLE PERSON:

PRESIDENT OF THE MANAGEMENT BOARD

Zeljko Zadro, dipl.oec. PRNICA ŠEĆERA d.d. 1 MEMBER OF THE MANAGEMENT BOARD

MEMBER/OF THE MANAGEMENT BOARD

Darko Krstić, dipl.oec

Ivo Rešić, mr.sc.

Appendix 1 Reporting period:	01.01.2018. to	31.03.2018.
	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 469
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

Surname and name ZADRO ŽELJKO

E-mail address: nevena.dragic@secerana.hr

(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

2. Report of the Management Board on position of the Company

(signed by authorised person for representation)

BALANCE SHEET
as at $\overline{)31.03.2018.}$

Item		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	520.812.391	508.526.745
I. INTANGIBLE ASSETS (004 to 009)	003	876.085	1.309.953
1. Assets development	004
2. Concessions, patents, licences fees, trade and service marks, software and other rights	005	876.085	1.309.953
3. Goodwill	006
4. Prepayments for purchase of intangible assets	007
5. Intangible assets in preparation	008
6. Other intangible assets II. TANGIBLE ASSETS (011 to 019)	009
1. Land	010	515.464.345	502.768.325
2. Buildings	011	38.750.891	38.750.891
3. Plant and equipment	012	227.964.481	224.471.592
4. Tools, facility inventory and transport assets	013	183.910.605	174.620.296
5. Biological assets	014	2.540.528	2.595.117
6. Prepayments for tangible assets	015 016
7. Tangible assets in progress	017	34.254.275 26.073.477	33.882.165 26.515.546
8. Other tangible assets	018	44.900	44.900
9. Investments in buildings		1.925.188	1.887.818
III. LONG-TERM FINANCIAL ASSETS (021 to 028)	019	4.162.701	4.139.207
1. Investments (shares) with related parties	020 021		900.000
2. Loans given to related parties		900.000
3. Participating interest (shares)	022
4. Loans to entrepreneurs in whom the entity holds participating interests	023
5. Investments in securities	024
6. Loans, deposits and similar assets	025	917.258	917.107
7. Other long - term financial assets	026	2.345.443	2.322.100
8. Investments accounted by equity method	027
IV. RECEIVABLES (030 to 032)	028
	029	309.260	309.260
1. Receivables from related parties 2. Receivables from based on trade loans	030
3. Other receivables	031	309.260
V. DEFERRED TAX ASSETS	032 033		309.260
C) SHORT TERM ASSETS (035+043+050+058)		726.194.647	629.115.491
I. INVENTORIES (036 to 042)	034 035	485.469.204	420.920.575
1. Raw-material and supplies	036	39.465.980	39.714.149
2. Work in progress	037		24.886.698
3. Finished goods	038	406.044.319	293.472.020
4. Merchandise	039	35.008.468	56.545.098
5. Prepayments for inventories	040	4.950.437	6.302.610
6. Long - term assets held for sales	041
7. Biological assets	042
II. RECEIVABLES (044 to 049)	043	154.118.758	177.978.731
1. Receivables from related parties	044	3.271.551	4.512.882
2. Accounts receivable	045	116.506.784	167.974.687
3. Receivables from participating parties	046
4. Receivables from employees and members of related parties	047	6.663	5.906
5. Receivables from government and other institutions	048	33.569.740	4.812.332
6. Other receivables	049	764.020	672.924
III. SHORT TERM FINANCIAL ASSETS (051 to 057)	050	14.506.338	18.562.353
1. Shares (stocks) in related parties	051
2. Loans given to related parties	052	6.694.760	10.615.511
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	7.320.078	7.455.342
7. Other financial assets	057	491.500	491.500
IV. CASH AT BANK AND IN CASHIER	058	72.100.347	11.653.832
D) PREPAID EXPENSES AND ACCRUED REVENUE	059	3.202.643	2.620.312
E) TOTAL ASSETS (001+002+034+059)	060	1.250.209.681	1.140.262.548
F) OFF-BALANCE RECORDS	061	1.448.792.590	1.452.164.940

Item	AOP	Last year (net)	Current year
	code		(net)
$\blacksquare$ LIABILITIES AND CAPITAL	$\overline{2}$	3	$\overline{\mathbf{4}}$
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078)
I. SUBSCRIBED CAPITAL	062	301.180.049	309.529.858
II. CAPITAL RESERVES	063	249.600.060	249.600.060
III.RESERVES FROM PROFIT (066+067-068+069+070)	064	10.368.101	10.368.101
	065	56.417.086	56.417.086
1. Reserves prescribed by low 2. Reserves for treasury shares	066	12.532.960	12.532.960
3. Treasury stocks and shares (deduction)	067	43.866.670	43.866.670
4. Statutory reserves	068
5. Other reserves	069
	070	17.456	17.456
IV. REVALUATION RESERVES	071
V. RETAINED EARNINGS OR ACCUMULATED LOSS (073-074)	072	155.502.891	$-20.916.721$
1. Retained earnings	073	155.502.891
2. Accumulated loss	074		20.916.721
VI. PROFIT/LOSS FOR THE CURRENT YEAR (076-077)	075	-176.840.330	7.952.663
1. Profit for the current year	076		7.952.663
2. Loss for the current year	077	176.840.330
IX. MINORITY INTERESTS	078	6.132.241	6.108.669
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
C) LONG - TERM LIABILITIES (084 to 092)	083	169.068.573	150.072.426
1. Liabilities to related parties	084
2. Liabilities for loans, deposits etc.	085	945.496	1.038.478
3. Liabilities to banks and other financial institutions	086	168.123.077	149.033.948
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	763.877.291	664.715.907
1. Liabilities to related parties	094	2.175	2.175
2. Liabilities for loans, deposits etc.	095	13.307.340	5.117.974
3. Liabilities to banks and other financial institutions	096	374.102.814	404.487.113
4. Liabilities for received prepayments	097	21.271.550	33.405.523
5. Accounts payable	098	306.020.326	205.201.427
6. Liabilities arising from debt securities	099
7. Liabilities to entrepreneurs in whom the entity holds participating interests	100
8. Liabilities to employees	101	3.379.307	2.997.251
9. Liabilities for taxes, contributions and similar fees	102	7.991.230	9.773.445
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	37.771.586	3.700.036
E) DEFFERED SETTLEMENTS OF CHARGES AND INCOME DEFERRED TO FUTURE PERIOD	106	15.630.559	15.491.148
F) TOTAL - CAPITAL AND LIABILITIES (062+079+083+093+106)	107	1.250.209.681	1.140.262.548
G) OFF-BALANCE RECORDS	108	1.448.792.590	1.452.164.940
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	295.047.808	303.421.189
2. Attributed to minority interest	110	6.132.241	6.108.669

PROFIT AND LOSS ACCOUNT
for the period 01.01.2018. do 31.03.2018.

Item	AOP code	Last year		Current year
		Comulative	Quartely	Comulative	Quartely
$\overline{\mathbf{1}}$	$\overline{2}$	3	$\overline{\mathbf{4}}$	$5\overline{5}$	6
I. OPERATING REVENUE (112+113) 1. Sales revenue	111	190.680.268	190.680.268	218.712.349	218.712.349
2. Other operating revenues	112	189.396.410	189.396.410	218.263.589	218.263.589
II. OPERATING EXPENSES (115+116+120+124+125+126+129+130)	113 114	1.283.858	1.283.858	448.760	448.760
1. Changes in value of work in progress and finished products	115	191.182.329 57.836.951	191.182.329 57.836.951	231.869.285 87.682.126	231.869.285
2. Material costs (117 to 119)	116	98.649.997	98.649.997	114.090.705	87.682.126 114.090.705
a) Raw material and material costs	117	8.550.205	8.550.205	8.088.353	8.088.353
b) Costs of goods sold	118	80.866.171	80.866.171	90.546.836	90.546.836
c) Other external costs	119	9.233.621	9.233.621	15.455.516	15.455.516
3. Staff costs (121 to 123)	120	12.527.642	12.527.642	12.509.394	12.509.394
a) Net salaries and wages	121	7.953.131	7.953.131	7.951.938	7.951.938
b) Cost for taxes and contributions from salaries	122	2.766.406	2.766.406	2.771.182	2.771.182
c) Contributions on gross salaries	123	1.808.105	1.808.105	1.786.274	1.786.274
4. Depreciation	124	13.655.653	13.655.653	13.269.794	13.269.794
5. Other costs	125	6.525.042	6.525.042	3.641.824	3.641.824
6. Impairment (127+128)	126	0		$\Omega$	$\overline{0}$
a) Impairment of long-term assets (financial assets excluded)	127
b) Impairment of short - term assets (financial assets excluded) 7. Provisions	128
8. Other operating costs	129
III. FINANCIAL INCOME (132 to 136)	130	1.987.044	1.987.044	675.442	675.442
	131	17.299.924	17.299.924	29.317.887	29.317.887
1. Interest income, foreign exchange gains, dividends and similar income from related parties povezanim poduzetnicima	132	21.644	21.644	120.751	120.751
2. Interest income, foreign exchange gains, dividends and similar income from non - related	133	9.899.515	9.899.515	3.895.244	3.895.244
3. Share in income from affiliated entrepreneurs and participating interests	134
4. Unrealized gains (income) from financial assets	135
5. Other financial income	136	7.378.765	7.378.765	25.301.892	25.301.892
IV. FINANCIAL EXPENSES (138 do 141)	137	6.911.326	6.911.326	8.231.861	8.231.861
1. Interest expenses, foreign exchange losses, dividends and similar expenses from related	138	544.323	544.323	376.346	376.346
2. Interest expenses, foreign exchange losses, dividends and similar expenses from non - 3. Unrealized losses (expenses) on financial assets	139	6.071.903	6.071.903	7.855.515	7.855.515
4. Other financial expenses	140
V. INCOME FROM INVESTMENT - SHARE IN PROFIT OF ASSOCIATED ENTREPRENEURS	141	295.100	295.100
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	207.980.192	207.980.192	248.030.236	248.030.236
X. TOTAL EXPENSES (114+137+143 + 145)	147	198.093.655	198.093.655	240.101.146	240.101.146
XI. PROFIT OR LOSS BEFORE TAXATION (146-147)	148	9.886.537	9.886.537	7.929.090	7.929.090
1. Profit before taxation (146-147)	149	9.886.537	9.886.537	7.929.090	7.929.090
2. Loss before taxation (147-146)	150	$\circ$	$\circ$	0	$\circ$
XII. PROFIT TAX	151	$\mathbf 0$	0	$\mathsf{O}\xspace$	$\circ$
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151)	152	9.886.537	9.886.537	7.929.090	7.929.090
1. Profit for the period (149-151)	153	9.886.537	9.886.537	7.929.090	7.929.090
2. Loss for the period (151-148)	154	0	$\Omega$	$\circ$
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	9.916.970	9.916.970	7.952.663	7.952.663
2. Attributed to minority interest STATEMENT OF OTHER COMPREHENSIVE INCOME (IFRS)	156	$-30.433$	$-30.433$	$-23.573$	$-23.573$
I. PROFIT OR LOSS FOR THE PERIOD (= 152)
II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAX (159 do 165)	157	9.886.537	9.886.537	7.929.090	7.929.090
1. Exchange differences on translation of foreign operations	158	0	0	0
2. Movements in revaluation reserves of long - term tangible and intangible assets	159
3. Profit or loss from reevaluation of financial assets available for sale	160 161
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	$\mathbf 0$	0	0
V. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (157+167)	168	9.886.537	9.886.537	7.929.090	7.929.090
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
	169	9.916.970	9.916.970	7.952.663
1. Attributed to equity holders of parent company 2. Attributed to minority interest	170	$-30.433$	$-30.433$	$-23.573$	7.952.663 $-23.573$

STATEMENT OF CASH FLOWS - INDIRECT METHOD
1.100110

for the period	1.1.2018	do	31.3.2018
Item			AOP code	Last year	Current year
$\mathbf{1}$				3	$\overline{4}$
CASH FLOW FROM OPERATING ACTIVITIES
1. Profit before tax			001	9.886.537	7.929.090
2. Depreciation			002	13.655.653	13.269.794
3. Increase in short term liabilities			003
4. Decrease in short term receivables			004	132.130.268	14.556.812
5. Decrease in inventories			005	65.718.986	64.985.123
6. Other increase in cash flow			006	1.858.159	105.071
I. Total increase in cash flow from operating activities (001 to 006)			007	223.249.603	100.845.890
1. Decrease in short term liabilities			008	211.595.113	201.037.448
2. Increase in short term receivables			009		38.194.133
3. Increase in inventories			010	23.923.950	81.607
4. Other decrease in cash flow			011	62.137.748	6.660.331
II. Total decrease in cash flow from operating activities (008 to 011)			012	297.656.811	245.973.519
A1) NET INCREASE IN CASH FLOW FROM OPERATING ACTIVITIES			013	$\mathbf 0$
A2) NET DECREASE IN IN CASH FLOW FROM OPERATING ACTIVITIES			014	74.407.208	145.127.629
CASH FLOW FROM INVESTING ACTIVITIES
1. Cash inflows from sales of long-term tangible and intangible assets			015	58.333	372.109
2. Cash inflows from sales of equity and debt instruments			016
3. Interests receipts			017	116.003	12.180
4. Dividend receipts			018
5. Other cash inflows from investing activities			019	1.779.973	135.840
III. Total cash inflows from investing activities (015 to 019)			020	1.954.309	520.129
1. Cash outflow for purchase of long-term tangible and intangible assets			021	1.235.055	1.379.807
2. Cash outflow for acquisition of equity and debt financial instruments			022
3. Other cash outflow for investing activities			023	15.722
IV. Total cash outflow for investing activities (021 do 023)			024	1.250.777	1.379.807
B1) NET INCREASE IN CASH FLOW FROM INVESTING ACTIVITIES (020-024)			025	703.532
B2) NET DECREASE IN CASH FLOW FROM INVESTING ACTIVITIES			026	0	859.678
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	149.578.861	238.720.129
3. Other proceeds from financial activities			029		5.558.359
V. Total cash inflows from financial activities (027 to 029)			030	149.578.861	244.278.488
1. Cash outflow for repayment of credit principal and bonds			031	87.227.081	145.083.918
2. Cash outflow for dividends paid			032
3. Cash outflow for financial lease			033	872.338	153.778
4. Cash outflow for purchase of treasury shares			034
5. Other cash outflow for financial activities			035	709.076
VI. Total cash outflow for financial activities (031 to 035)			036	88.808.495	13.500.000
C1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES					158.737.696
C2) NET DECREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES			037	60.770.366	85.540.792
Total increase in cash flow (013 - 014 + 025 - 026 + 037 - 038)			038	0
Total decrease in cash flow $(014 - 013 + 026 - 025 + 038 - 037)$			039 040	12.933.310
	Cash and cash equivalents at the beginning of the period				60.446.515
Increase of cash and cash equivalents				27.869.646	72.100.347
Decrease of cash and cash equivalents			042
Cash and cash equivalents at the end of the period			043	12.933.310	60.446.515
			044	14.936.336	11.653.832

for the period 1.1.2018 31.3.2018 do
Item	AOP code	Last year	Current year
1	$\overline{2}$	$3\overline{3}$	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	56.417.086	56.417.086
4. Retained earnings or accumulated loss	004	155.502.891	$-20.916.721$
5. Profit or loss for the current year	005	$-176.840.330$	7.952.663
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	295.047.808	303.421.189
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	$\Omega$	0
17 a. Attributed to equity holders of parent company	018	295.047.808	303.421.189
17 b. Attributed to minority interest	019	6.132.241	6.108.669

STATEMENT OF CHANGES IN EQUITY

Notes

THERE WERE NO ACCOUNTING POLICY CHANGES IN RELATION TO THE ANNUAL FINANCIAL REPORT FOR YEAR 2017.