Viro Tvornica ŠEĆERA d.d.

Quarterly Report • Apr 30, 2018

STATEMENT OF PERSON RESPONSIBLE FOR PRODUCTION OF THE THREE-MONTH 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 financial reports of VIRO TVORNICA ŠEĆERA d.d., Zagreb for $\sim$ 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 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 April 16, 2018

RESPONSIBLE PERSON

TVORNICA ŠEĆERA d.d. 4

PRESIDENT OF THE MANAGEMENT BOARD:

Željko Zadro, dipl.oec

Darko Krstić, Member of the Menagement Bord

Ivo Rešić, Member of the Menagement Bord

Appendix 1 Reporting period:	1.1.2018 to	31.3.2018
	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 203
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: 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

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

$\mathcal{L}$ L Ų TVORNICA ŠEĆERA d.d. 4

(signed by authorised person for representation)

BALANCE SHEET
as at 31.3.2018

Item	AOP code	Last year (net)	Current year (net)
$\mathbf{1}$ ASSETS	$\overline{2}$	3	$\overline{4}$
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	692.483.146	686.285.153
1. Assets development	003	515.755	967.916
2. Concessions, patents, licences fees, trade and service marks, software and other rights	004
3. Goodwill	005	515.755	967.916
4. Prepayments for purchase of intangible assets	006
5. Intangible assets in preparation	007 008
6. Other intangible assets	009
II. TANGIBLE ASSETS (011 to 019)	010	156.523.874	150.009.560
1. Land	011	5.548.592	5.548.592
2. Buildings	012	62.595.526	61.060.713
3. Plant and equipment	013	49.960.898	45.390.877
4. Tools, facility inventory and transport assets	014
5. Biological assets	015
6. Prepayments for tangible assets	016	34.254.275	33.882.165
7. Tangible assets in progress	017	2.230.095	2.230.095
8. Other tangible assets	018	9.300	9.300
9. Investments in buildings	019	1.925.188	1.887.818
III. LONG-TERM FINANCIAL ASSETS (021 to 028)	020	535.443.517	535.307.677
1. Investments (shares) with related parties	021	419.833.409	419.829.244
2. Loans given to related parties	022	115.338.105	115.207.249
3. Participating interest (shares)	023
4. Loans to entrepreneurs in whom the entity holds participating interests	024
5. Investments in securities	025	13.848	13.697
6. Loans, deposits and similar assets	026	258.155	257.487
7. Other long - term financial assets	027
8. Investments accounted by equity method	028
IV. RECEIVABLES (030 to 032)	029	$\mathbf 0$	0
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	525.589.492	530.610.845
I. INVENTORIES (036 to 042)	035	168.479.068	108.254.259
1. Raw-material and supplies	036	15.746.983	15.648.639
2. Work in progress 3. Finished goods	037		13.367.885
4. Merchandise	038	125.761.431	31.171.888
5. Prepayments for inventories	039	22.475.298	42.431.370
6. Long - term assets held for sales	040	4.495.356	5.634.477
7. Biological assets	041
II. RECEIVABLES (044 to 049)	042
1. Receivables from related parties	043	135.261.230	168.797.455
2. Accounts receivable	044	45.106.773	49.206.281
3. Receivables from participating parties	045	80.332.841	115.303.257
4. Receivables from employees and members of related parties	046
5. Receivables from government and other institutions	047	759	2.639
6. Other receivables	048	9.664.925	4.131.507
III. SHORT TERM FINANCIAL ASSETS (051 to 057)	049	155.932	153.771
1. Shares (stocks) in related parties	050	159.166.060	242.829.073
2. Loans given to related parties	051
3. Participating interests (shares)	052	152.546.574	236.092.024
4. Loans to entrepreneurs in whom the entity holds participating interests	053
5. Investments in securities	054
6. Loans, deposits, etc.	055
7. Other financial assets	056	6.219.986	6.337.549
IV. CASH AT BANK AND IN CASHIER	057	399.500	399.500
D) PREPAID EXPENSES AND ACCRUED REVENUE	058 059	62.683.134	10.730.058
E) TOTAL ASSETS (001+002+034+059)	060	1.503.946	1.243.264
F) OFF-BALANCE RECORDS	061	1.219.576.584 120.241.416	1.218.139.262
			159.359.574

Item	AOP code	Last year (net)	Current year (net)
$\mathbf{1}$	$\overline{2}$	$\overline{3}$	$\overline{4}$
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078) I. SUBSCRIBED CAPITAL	062	562.457.426	581.349.920
	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	$\circ$
4. Statutory reserves	069
5. Other reserves	070
IV. REVALUATION RESERVES	071
V. RETAINED EARNINGS OR ACCUMULATED LOSS (073-074)	072	349.584.804	246.142.592
1. Retained earnings	073	349.584.804	246.142.592
2. Accumulated loss	074
VI. PROFIT/LOSS FOR THE CURRENT YEAR (076-077)	075	$-103.442.212$	18.892.494
1. Profit for the current year	076		18.892.494
2. Loss for the current year	077	103.442.212
IX. MINORITY INTERESTS	078
B) PROVISIONS (080 to 082)	079	$\bf{0}$	$\mathbf{0}$
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	157.643.945	138.589.439
1. Liabilities to related parties	084
2. Liabilities for loans, deposits etc.	085	572.633	487.199
3. Liabilities to banks and other financial institutions	086	157.071.312	138.102.240
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
1. Liabilities to related parties	094	499.168.562	497.998.501
2. Liabilities for loans, deposits etc.	095	5.174.487	5.291.751
3. Liabilities to banks and other financial institutions	096	12.999.840	4.925.266
4. Liabilities for received prepayments	097	259.345.545	311.921.886
5. Accounts payable		13.553.903	32.523.944
6. Liabilities arising from debt securities	098	162.866.591	131.175.346
7. Liabilities to entrepreneurs in whom the entity holds participating interests	099
8. Liabilities to employees	100
9. Liabilities for taxes, contributions and similar fees	101	1.427.626	1.291.887
10. Liabilities to share - holders	102	6.566.560	7.603.832
11. Liabilities for long-term assets held for sale	103	30.963	30.963
12. Other short - term liabilities	104
E) DEFFERED SETTLEMENTS OF CHARGES AND INCOME DEFERRED TO FUTURE PERIOD	105 106	37.203.047 306.651	3.233.626 201.402
F) TOTAL - CAPITAL AND LIABILITIES (062+079+083+093+106)
G) OFF-BALANCE RECORDS	107	1.219.576.584	1.218.139.262
APPENDIX to balance sheet(to be filled in by entrepreneur that prepares consolidated annual financial report)	108	120.241.416	159.359.574
CAPITAL AND RESERVES
1. Attributed to equity holders of parent company
2. Attributed to minority interest	109 110

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

Item	AOP				Current year
	code	Last year
$\mathbf{1}$	$\overline{2}$	Comulative 3	Quartely $\overline{\bf{4}}$	Comulative 5	Quartely
I. OPERATING REVENUE (112+113) 1. Sales revenue	111	177.920.968	177.920.968	198.732.211	6 198.732.211
2. Other operating revenues	112	177.244.385	177.244.385	198.669.127	198.669.127
II. OPERATING EXPENSES (115+116+120+124+125+126+129+130)	113	676.583	676.583	63.084	63.084
1. Changes in value of work in progress and finished products	114	172.420.337	172.420.337	204.760.569	204.760.569
i and finished products	115	68.165.640	68.165.640	81.221.659	81.221.659
2. Material costs (117 to 119)	116	88.133.789	88.133.789	109.718.497
a) Raw material and material costs	117	2.790.304	2.790.304	2.025.563	109.718.497
b) Costs of goods sold	118	79.216.802	79.216.802	96.584.206	2.025.563 96.584.206
c) Other external costs 3. Staff costs (121 to 123)	119	6.126.683	6.126.683	11.108.728	11.108.728
a) Net salaries and wages	120	5.079.473	5.079.473	5.415.470	5.415.470
b) Cost for taxes and contributions from salaries	121	3.210.795	3.210.795	3.429.593	3.429.593
c) Contributions on gross salaries	122	1.142.653	1.142.653	1.233.363	1.233.363
4. Depreciation	123	726.025	726.025	752.514	752.514
5. Other costs	124	6.529.102	6.529.102	6.351.424	6.351.424
6. Impairment (127+128)	125	2.775.912	2.775.912	1.494.935	1.494.935
a) Impairment of long-term assets (financial assets excluded)	126	0	0	$\mathbf{0}$
b) Impairment of short - term assets (financial assets excluded)	127 128
7. Provisions	129
8. Other operating costs	130
III. FINANCIAL INCOME (132 to 136)	131	1.736.421 16.754.511	1.736.421	558.584	558.584
1. Interest income, foreign exchange gains, dividends and similar income from related parties			16.754.511	31.629.288	31.629.288
2. Interest income, foreign exchange gains, dividends and similar income from non - related	132	284.075	284.075	2.835.239	2.835.239
parties and other entities	133	9.105.584	9.105.584	3.507.481	3.507.481
3. Share in income from affiliated entrepreneurs and participating interests	134
4. Unrealized gains (income) from financial assets	135
5. Other financial income	136	7.364.852	7.364.852
IV. FINANCIAL EXPENSES (138 do 141)	137	5.623.804	5.623.804	25.286.568	25.286.568
1. Interest expenses, foreign exchange losses, dividends and similar expenses from related parties				6.708.436	6.708.436
2. Interest expenses, foreign exchange losses, dividends and similar expenses from non -	138	2.901.629	2.901.629	1.690.519	1.690.519
related parties and other entities	139	2.722.175	2.722.175	5.017.917	5.017.917
3. Unrealized losses (expenses) on financial assets	140
4. Other financial expenses	141
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 IX. TOTAL INCOME (111+131+142 + 144)	145
X. TOTAL EXPENSES (114+137+143 + 145)	146	194.675.479	194.675.479	230.361.499	230.361.499
XI. PROFIT OR LOSS BEFORE TAXATION (146-147)	147	178.044.141	178.044.141	211.469.005	211.469.005
1. Profit before taxation (146-147)	148	16.631.338	16.631.338	18.892.494	18.892.494
2. Loss before taxation (147-146)	149	16.631.338	16.631.338	18.892.494	18.892.494
XII. PROFIT TAX	150		0	$\mathbf{0}$
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151)	151
1. Profit for the period (149-151)	152 153	16.631.338	16.631.338	18.892.494	18.892.494
2. Loss for the period (151-148)	154	16.631.338	16.631.338	18.892.494	18.892.494
APPENDIX to P&L account (to be filled in by entrepreneur that prepares consolidated financial report)		0	$\Omega$	$\mathbf{0}$
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	16.631.338	16.631.338	18.892.494	18.892.494
II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAX (159 do 165) 1. Exchange differences on translation of foreign operations	158	$\mathbf{0}$	$\mathbf{0}$	$\theta$
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
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	163 164
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
V. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (157+167)	168	16.631.338	16.631.338	$\mathbf{0}$ 18.892.494	0 18.892.494
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 2. Attributed to minority interest	169
	170

STATEMENT OF CASH FLOWS - INDIRECT METHOD

for the period	1.1.2018	do	31.3.2018
	Item		AOP code	Last year	Current year
1 CASH FLOW FROM OPERATING ACTIVITIES			$\overline{2}$	3	4
1. Profit before tax
2. Depreciation					16.631.338 18.892.494
3. Increase in short term liabilities			002	6.529.102	6.351.424
4. Decrease in short term receivables			003
5. Decrease in inventories			004	46.483.773
6. Other increase in cash flow			005	63.879.552	60.224.809
			006	1.842.862	260.682
I. Total increase in cash flow from operating activities (001 to 006) 1. Decrease in short term liabilities			007	135.366.627	85.729.409
2. Increase in short term receivables			008	105.376.792	45.733.064
3. Increase in inventories			009		33.536.225
4. Other decrease in cash flow			010
			011	61.936.381	86.251.315
II. Total decrease in cash flow from operating activities (008 to 011) A1) NET INCREASE IN CASH FLOW FROM OPERATING ACTIVITIES			012	167.313.173	165.520.604
AKTIVNOSTI (007-012)			013
A2) NET DECREASE IN IN CASH FLOW FROM OPERATING ACTIVITIES
AKTIVNOSTI (012-007)			014	31.946.546	79.791.195
CASH FLOW FROM INVESTING ACTIVITIES
1. Cash inflows from sales of long-term tangible and intangible assets			015
2. Cash inflows from sales of equity and debt instruments			016	58.333	372.109
3. Interests receipts			017
4. Dividend receipts				116.003	12.180
5. Other cash inflows from investing activities			018
III. Total cash inflows from investing activities (015 to 019)			019	891.260	135.840
1. Cash outflow for purchase of long-term tangible and intangible assets			020	1.065.596	520.129
2. Cash outflow for acquisition of equity and debt financial instruments			021	212.994	661.380
3. Other cash outflow for investing activities			022
IV. Total cash outflow for investing activities (021 do 023)			023	15.722
B1) NET INCREASE IN CASH FLOW FROM INVESTING ACTIVITIES (020-024)			024	228.716	661,380
B2) NET DECREASE IN CASH FLOW FROM INVESTING ACTIVITIES			025	836.880
AKTIVNOSTI (024-020)			026		141.251
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	67.908.500	161.833.308
3. Other proceeds from financial activities			029		5.500.000
V. Total cash inflows from financial activities (027 to 029)			030	67.908.500	167.333.308
1. Cash outflow for repayment of credit principal and bonds			031	47.376.122	125.700.160
2. Cash outflow for dividends paid			032
3. Cash outflow for financial lease			033	872.338
4. Cash outflow for purchase of treasury shares			034		153.778
5. Other cash outflow for financial activities			035
VI. Total cash outflow for financial activities (031 to 035)			036	500.000	13.500.000
C1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES			48.748.460	139.353.938
AKTIVNOSTI (030-036) C2) NET DECREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES			037	19.160.040	27.979.370
AKTIVNOSTI (036-030)			038
Total increase in cash flow (013 - 014 + 025 - 026 + 037 - 038)			039
Total decrease in cash flow (014 - 013 + 026 - 025 + 038 - 037)			040	11.949.626	51.953.076
Cash and cash equivalents at the beginning of the period			041	22.411.336	62.683.134
Increase of cash and cash equivalents			042	$\circ$
Decrease of cash and cash equivalents			043
Cash and cash equivalents at the end of the period			044	11.949.626	51.953.076
				10.461.710	10.730.058

STATEMENT OF CHANGES IN EQUITY for the period $\overline{11}$ 1.1.2018 $\frac{1}{2}$

for the period 1.1.2018 do 31.3.2018
Item	AOP code	Last year	Current year
1	$\overline{2}$	3 1	$\overline{\bf 4}$
1. Subscribed capital 2. Capital reserves	001	249,600,060	249.600.060
3. Reserves from profit	002	10.368.101	10.368.101
	003	56.346.673	56.346.673
4. Retained earnings or accumulated loss	004	349.584.804	246.142.592
5. Profit or loss for the current year	005	$-103.442.212$	18.892.494
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	562.457.426	581.349.920
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
		$\circ$
17 a. Attributed to equity holders of parent company	018
17 b. Attributed to minority interest	019

Notes

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