Viro Tvornica ŠEĆERA d.d.

Quarterly Report • Nov 16, 2018

STATEMENT OF PERSON RESPONSIBLE FOR PRODUCTION OF THE CONSOLIDATED REPORT FOR 30 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-IX 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 November 14, 2018

RESPONSIBLE PERSON:

PRESIDENT OF THE MANAGEMENT BOARD

Željko Zadro, dipl.oec.

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	30.09.2018.
		Quarterly Financial Report - TFI-POD
Registration number (MB)	01650971
Identification number of subject (MBS)	010049135
Personal identification number (OIB)	04525204420
	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 478
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
Phone number: 033840117	(fill in only surname and name of contact person)	Fascimile: 033840103
	E-mail address: nevena.dragic@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

M.P TVORNICA SECERA d.d. 4 (signed by authorised person for representation)

BALANCE SHEET
as at 30.09.2018.

Item		Last year (net)	Current year (net)
$\overline{\mathbf{1}}$	$\overline{2}$	3	$\overline{4}$
ASSETS
A) RECEIVABLES FOR SUBSCRIBED BUT NOT PAID-IN CAPITAL	001
B) LONG-TERM ASSETS (003+010+020+029+033) I. INTANGIBLE ASSETS (004 to 009)	002 003	520.812.391 876.085	508.686.129 2.048.450
1. Assets development	004
2. Concessions, patents, licences fees, trade and service marks, software and other rights	005	876.085	2.048.450
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	515.464.345	492.791.392
1. Land	011	38.750.891	38.750.891
2. Buildings	012	227.964.481	218.995.903
3. Plant and equipment	013	183.910.605	156.318.676
4. Tools, facility inventory and transport assets 5. Biological assets	014	2.540.528	6.186.745
6. Prepayments for tangible assets	015 016	34.254.275	33.971.728
7. Tangible assets in progress	017	26.073.477	36.709.472
8. Other tangible assets	018	44.900	44.900
9. Investments in buildings	019	1.925.188	1.813.077
III. LONG-TERM FINANCIAL ASSETS (021 to 028)	020	4.162.701	13.537.027
1. Investments (shares) with related parties	021	900.000	5.478.300
2. Loans given to related parties	022		3.312.004
3. Participating interest (shares)	023
4. Loans to entrepreneurs in whom the entity holds participating interests	024
5. Investments in securities	025	917.258	917.107
6. Loans, deposits and similar assets	026	2.345.443	3.829.616
7. Other long - term financial assets	027
8. Investments accounted by equity method	028
IV. RECEIVABLES (030 to 032)	029	309.260	309.260
1. Receivables from related parties 2. Receivables from based on trade loans	030
3. Other receivables	031 032	309.260	309.260
V. DEFERRED TAX ASSETS	033
C) SHORT TERM ASSETS (035+043+050+058)	034	726.194.647	475.710.626
I. INVENTORIES (036 to 042)	035	485.469.204	261.654.302
1. Raw-material and supplies	036	39.465.980	45.432.717
2. Work in progress	037		64.664.339
3. Finished goods	038	406.044.319	118.223.222
4. Merchandise	039	35.008.468	25.229.150
5. Prepayments for inventories	040	4.950.437	8.104.874
6. Long - term assets held for sales	041
7. Biological assets	042
II. RECEIVABLES (044 to 049)	043	154.118.758	155.583.227
1. Receivables from related parties 2. Accounts receivable	044	3.271.551	13.440.176
3. Receivables from participating parties	045	116.506.784	137.875.163
4. Receivables from employees and members of related parties	046 047	6.663	4.469
5. Receivables from government and other institutions	048	33.569.740	3.462.629
6. Other receivables	049	764.020	800.790
III. SHORT TERM FINANCIAL ASSETS (051 to 057)	050	14.506.338	27.490.653
1. Shares (stocks) in related parties	051
2. Loans given to related parties	052	6.694.760	17.760.589
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	8.938.064
7. Other financial assets	057	491.500	792.000
IV. CASH AT BANK AND IN CASHIER	058	72.100.347	30.982.444
D) PREPAID EXPENSES AND ACCRUED REVENUE	059	3.202.643	3.525.018
E) TOTAL ASSETS (001+002+034+059) F) OFF-BALANCE RECORDS	060	1.250.209.681	987.921.773
	061	1.448.792.590	1.242.660.807

Item	AOP code	Last year (net)	Current year (net)
1	$\overline{2}$	3	$\overline{4}$
LIABILITIES AND CAPITAL
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	301.180.049	278.311.808
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	56.417.086	51.781.965
1. Reserves prescribed by low	066	12.532.960	12.532.959
2. Reserves for treasury shares	067	43.866.670	39.231.550
3. Treasury stocks and shares (deduction)	068
4. Statutory reserves	069
5. Other reserves	070	17.456	17.456
IV. REVALUATION RESERVES	071
V. RETAINED EARNINGS OR ACCUMULATED LOSS (073-074)	072	155.502.891	$-20.915.937$
1. Retained earnings	073	155.502.891
2. Accumulated loss	074		20.915.937
VI. PROFIT/LOSS FOR THE CURRENT YEAR (076-077)	075	-176.840.330	$-18.482.659$
1. Profit for the current year	076
2. Loss for the current year	077	176.840.330	18.482.659
IX. MINORITY INTERESTS	078	6.132.241	5.960.278
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	115.129.325
1. Liabilities to related parties	084
2. Liabilities for loans, deposits etc.	085	945.496	744.366
3. Liabilities to banks and other financial institutions	086	168.123.077	114.384.959
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	579.008.313
1. Liabilities to related parties	094	2.175	517.728
2. Liabilities for loans, deposits etc.	095	13.307.340	5.416.211
3. Liabilities to banks and other financial institutions	096	374.102.814	434.453.967
4. Liabilities for received prepayments	097	21.271.550	23.335.571
5. Accounts payable	098	306.020.326	99.064.548
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	3.187.616
9. Liabilities for taxes, contributions and similar fees	102	7.991.230	9.558.332
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	3.443.377
E) DEFFERED SETTLEMENTS OF CHARGES AND INCOME DEFERRED TO FUTURE PERIOD	106	15.630.559	15.019.118
F) TOTAL - CAPITAL AND LIABILITIES (062+079+083+093+106)	107	1.250.209.681	987.921.773
G) OFF-BALANCE RECORDS	108	1.448.792.590	1.242.660.807
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	272.351.530
2. Attributed to minority interest	110	6.132.241	5.960.278

PROFIT AND LOSS ACCOUNT
for the period 01.01.2018. do 30.09.2018.

$\,$

Item		Last year		Current year
	code	Comulative Quartely		Comulative Quartely
$\mathbf{1}$	$\overline{2}$	3	$\overline{4}$	5	6
I. OPERATING REVENUE (112+113)	111	781.056.412	247.391.372	521.135.842	136.385.869
1. Sales revenue	112	774.304.831	243.894.355	501.478.221	128.487.649
2. Other operating revenues	113	6.751.581	3.497.017	19.657.621	7.898.220
II. OPERATING EXPENSES (115+116+120+124+125+126+129+130)	114	785.558.981	257.154.119	564.277.721	150.901.103
1. Changes in value of work in progress and finished products 2. Material costs (117 to 119)	115	14.484.557	$-55.532.732$	227.073.833	42.195.060 76.414.878
a) Raw material and material costs	116 117	661.925.435 348.000.746	275.805.409 191.732.109	241.365.230 55.984.921	37.181.047
b) Costs of goods sold	118	265.200.110	61.870.202	138.986.852	22.548.348
c) Other external costs	119	48.724.579	22.203.098	46.393.457	16.685.483
3. Staff costs (121 to 123)	120	41.483.168	15.037.750	40.382.541	15.108.879
a) Net salaries and wages	121	26.133.214	9.429.145	25.410.209	9.379.937
b) Cost for taxes and contributions from salaries	122	9.402.916	3.456.592	9.268.574	3.599.827
c) Contributions on gross salaries	123	5.947.038	2.152.013	5.703.758	2.129.115
4. Depreciation	124	41.496.832	14.012.747	39.450.919	13.041.578
5. Other costs	125	20.564.189	6.494.712	11.113.359	3.147.952
6. Impairment (127+128)	126			$\Omega$	$\overline{0}$
a) Impairment of long-term assets (financial assets excluded)	127
b) Impairment of short - term assets (financial assets excluded)	128
7. Provisions	129
8. Other operating costs	130	5.604.800	1.336.233	4.891.839	992.756
III. FINANCIAL INCOME (132 to 136)	131	23.050.775	3.088.602	50.157.067	3.482.554
1. Interest income, foreign exchange gains, dividends and similar income from related parties povezanim poduzetnicima	132	597.774	512.212	768.058	467.792
2. Interest income, foreign exchange gains, dividends and similar income from non - related	133	14.261.151	1.778.642	7.942.522	920.675
3. Share in income from affiliated entrepreneurs and participating interests	134
4. Unrealized gains (income) from financial assets	135			300.500	150.000
5. Other financial income	136	8.191.850	797.748	41.145.987	1.944.087
IV. FINANCIAL EXPENSES (138 do 141)	137	31.323.700	14.712.438	25.669.934	9.494.491
1. Interest expenses, foreign exchange losses, dividends and similar expenses from related	138	689.048		697.678
2. Interest expenses, foreign exchange losses, dividends and similar expenses from non -	139	28.485.016	13.159.734	24.972.256	9.494.491
3. Unrealized losses (expenses) on financial assets	140
4. Other financial expenses	141	2.149.636	1.552.704
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)	146	804.107.187	250.479.974	571.292.909	139.868.423
X. TOTAL EXPENSES (114+137+143 + 145)	147	816.882.681	271.866.557	589.947.655	160.395.594
XI. PROFIT OR LOSS BEFORE TAXATION (146-147)	148	$-12.775.494$	$-21.386.583$	$-18.654.746$	$-20.527.171$
1. Profit before taxation (146-147)	149	$\Omega$	$\Omega$	$\Omega$	$\circ$
2. Loss before taxation (147-146)	150	12.775.494	21.386.583	18.654.746	20.527.171
XII. PROFIT TAX	151	$\overline{0}$	0	$\mathsf{O}\xspace$	0
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151)	152	$-12.775.494$	$-21.386.583$	-18.654.746	$-20.527.171$
1. Profit for the period (149-151)	153	0		$\mathbf{0}$	$\mathbf 0$
2. Loss for the period (151-148)	154	12.775.494	21.386.583	18.654.746	20.527.171
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	$-12.708.053$	$-21.403.148$	$-18.482.659$	$-20.266.007$
2. Attributed to minority interest	156	$-67.441$	16.565	$-172.087$	$-261.164$
STATEMENT OF OTHER COMPREHENSIVE INCOME (IFRS)
I. PROFIT OR LOSS FOR THE PERIOD (= 152)	157	$-12.775.494$	$-21.386.583$	$-18.654.746$	$-20.527.171$
II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAX (159 do 165)	158	$\Omega$		0	$\Omega$
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 4. Gains or losses on efficient cash flow hedging	161 162
5. Gains or losses on efficient hedge of a net investment in foreign countries 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	$\mathbf 0$	$\mathbf{0}$	$\mathbf 0$	0
V. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (157+167)	168	$-12.775.494$	$-21.386.583$	$-18.654.746$	$-20.527.171$
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	-12.708.053	$-21.403.148$	$-18.482.659$	$-20.266.007$
2 Attributed to minority interest	170	$-67441$	16.565	$-172087$	$-261.164$

STATEMENT OF CASH FLOWS - INDIRECT METHOD
-------------------------------------------	--

for the period	STATEMENT OF CASH FLOWS - INDIRECT METHOD 1.1.2018	do	30.9.2018
	Item		AOP code	Last year	Current year
	1		$\overline{2}$	3	$\overline{4}$
CASH FLOW FROM OPERATING ACTIVITIES
1. Profit before tax			001	$-12.775.494$	$-18.654.745$
2. Depreciation			002	41.496.832	39.450.919
3. Increase in short term liabilities			003		22.368
4. Decrease in short term receivables			004		6.081.554
5. Decrease in inventories			005	138.472.677	224.164.195
6. Other increase in cash flow			006	5.334.006	108.368
I. Total increase in cash flow from operating activities (001 to 006)			007	172.528.021	251.172.659
1. Decrease in short term liabilities			008	176.343.697	237.098.044
2. Increase in short term receivables			009	52.797.706	8.406.800
3. Increase in inventories			010	47.858.973
4. Other decrease in cash flow			011		23.057.076
II. Total decrease in cash flow from operating activities (008 to 011)			012	277.000.376	268.561.920
A1) NET INCREASE IN CASH FLOW FROM OPERATING ACTIVITIES			013	$\mathbf{0}$
A2) NET DECREASE IN IN CASH FLOW FROM OPERATING ACTIVITIES			014	104.472.355	17.389.261
CASH FLOW FROM INVESTING ACTIVITIES
1. Cash inflows from sales of long-term tangible and intangible assets			015	122.721	28.955
2. Cash inflows from sales of equity and debt instruments			016
3. Interests receipts			017	631.114	7.455.010
4. Dividend receipts			018	77.328	75.390
5. Other cash inflows from investing activities			019	3.379.171	1.712.675
III. Total cash inflows from investing activities (015 to 019)			020	4.210.334	9.272.030
1. Cash outflow for purchase of long-term tangible and intangible assets			021	29.016.902	17.979.346
2. Cash outflow for acquisition of equity and debt financial instruments			022
3. Other cash outflow for investing activities			023	3.947.275	11.107.327
IV. Total cash outflow for investing activities (021 do 023)			024	32.964.177	29.086.673
B1) NET INCREASE IN CASH FLOW FROM INVESTING ACTIVITIES (020-024)			025	0
B2) NET DECREASE IN CASH FLOW FROM INVESTING ACTIVITIES			026	28.753.843	19.814.643
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	335.052.690	386.781.675
3. Other proceeds from financial activities			029	8.014.353	5.500.000
V. Total cash inflows from financial activities (027 to 029)			030	343.067.043	392.281.675
1. Cash outflow for repayment of credit principal and bonds			031	201.153.730	377.423.860
2. Cash outflow for dividends paid			032
3. Cash outflow for financial lease			033	2.469.335	563.525
4. Cash outflow for purchase of treasury shares			034		4.635.120
5. Other cash outflow for financial activities			035	500.000	13.573.169
VI. Total cash outflow for financial activities (031 to 035)			036	204.123.065	396.195.674
C1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES			037	138.943.978
C2) NET DECREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES			038	0	3.913.999
Total increase in cash flow (013 - 014 + 025 - 026 + 037 - 038)			039	5.717.780
Total decrease in cash flow (014 - 013 + 026 - 025 + 038 - 037)			040		41.117.903
Cash and cash equivalents at the beginning of the period			041	27.869.646	72.100.347
Increase of cash and cash equivalents			042	5.717.780
Decrease of cash and cash equivalents			043	$\mathbf{0}$	41.117.903
Cash and cash equivalents at the end of the period			044	33.587.426	30.982.444

	STATEMENT OF CHANGES IN EQUITY
for the period	1.1.2018	do	30.9.2018

Item	AOP code	Last year	Current year
$\mathbf{1}$	$\mathbf{2}$	3 5	$\overline{4}$
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	56.417.086	51.781.965
4. Retained earnings or accumulated loss	004	155.502.891	$-20.915.937$
5. Profit or loss for the current year	005	$-176.840.330$	$-18.482.659$
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	272.351.530
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	295.047.808	272.351.530
17 b. Attributed to minority interest	019	6.132.241	5.960.278

Notes

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