Viro Tvornica ŠEĆERA d.d.

Quarterly Report • Feb 28, 2019

STATEMENT OF PERSON RESPONSIBLE FOR PRODUCTION OF THE CONSOLIDATED REPORT FOR 4Q 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-XII 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 February 27, 2019

RESPONSIBLE PERSON:

PRESIDENT OF THE MANAGEMENT BOARD

Željko Zadro, dipl.oec.

MEMBER OF THE MANAGEMENT BOARD

Darko Krstić, dipl.oec

MEMBER OF THE MANAGEMENT BOARD

Ivo Rešić, mr.sc.

Appendix 1 Reporting period:			01.01.2018. to	31.12.2018.
			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	133	ZAGREB
Code and county name	21	GRAD ZAGREB
Consolidated statement	YES			Number of employees 468 (at quarter end) NKD/NWC code:
Subsidiaries subject to consolidation (according to IFRS):				1081
		SLADORANA d.o.o.		Registration number:
		SLAVONIJA ŽUPANJA d.d.	ŠEĆERANA 63, ŽUPANJA	03307484
			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

$\ell$ q TVORNICA ŠEĆERA d.d. $\overline{1}$

(signed by authorised person for representation)

BALANCE SHEET
as at 31.12.2018.

Item		Last year (net)	Current year (net)
a ASSETS	$\overline{2}$	$\overline{\mathbf{3}}$	$\overline{\mathbf{4}}$
A) RECEIVABLES FOR SUBSCRIBED BUT NOT PAID-IN CAPITAL	001
B) LONG-TERM ASSETS (003+010+020+029+033)	002	520.812.391	509.194.205
I. INTANGIBLE ASSETS (004 to 009)	003	876.085	6.506.824
1. Assets development	004
2. Concessions, patents, licences fees, trade and service marks, software and other rights	005	876.085	6.506.824
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	489.431.518
1. Land	011	38.750.891	38.750.891
2. Buildings	012	227.964.481	217.022.529
3. Plant and equipment	013	183.910.605	148.435.695
4. Tools, facility inventory and transport assets	014	2.540.528	5.573.181
5. Biological assets	015
6. Prepayments for tangible assets 7. Tangible assets in progress	016	34.254.275	33.816.284
8. Other tangible assets	017	26.073.477	44.012.331
9. Investments in buildings	018	44.900	44.900
III. LONG-TERM FINANCIAL ASSETS (021 to 028)	019	1.925.188	1.775.707
1. Investments (shares) with related parties	020	4.162.701	13.106.909
2. Loans given to related parties	021	900.000	5.478.300
3. Participating interest (shares)	022		3.349.907
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	908.620
7. Other long - term financial assets	026	2.345.443	3.370.082
8. Investments accounted by equity method	027
IV. RECEIVABLES (030 to 032)	028
1. Receivables from related parties	029	309.260	148.954
2. Receivables from based on trade loans	030
3. Other receivables	031 032
V. DEFERRED TAX ASSETS	033	309.260	148.954
C) SHORT TERM ASSETS (035+043+050+058)	034
I. INVENTORIES (036 to 042)	035	726.194.647	463.884.755
1. Raw-material and supplies	036	485.469.204	350.273.647
2. Work in progress	037	39.465.980	110.029.480
3. Finished goods	038
4. Merchandise	039	406.044.319 35.008.468	212.599.873
5. Prepayments for inventories	040		22.161.980 5.482.314
6. Long - term assets held for sales	041	4.950.437
7. Biological assets	042
II. RECEIVABLES (044 to 049)	043	154.118.758	84.405.794
1. Receivables from related parties	044	3.271.551	12.105.443
2. Accounts receivable	045	116.506.784	52.284.738
3. Receivables from participating parties	046
4. Receivables from employees and members of related parties	047	6.663	5.364
5. Receivables from government and other institutions	048	33.569.740	17.174.886
6. Other receivables	049	764.020	2.835.363
III. SHORT TERM FINANCIAL ASSETS (051 to 057)	050	14.506.338	24.368.793
1. Shares (stocks) in related parties	051
2. Loans given to related parties	052	6.694.760	14.672.297
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	8.904.496
7. Other financial assets	057	491.500	792.000
V. CASH AT BANK AND IN CASHIER	058	72.100.347	4.836.521
D) PREPAID EXPENSES AND ACCRUED REVENUE	059	3.202.643	3.250.641
E) TOTAL ASSETS (001+002+034+059)	060	1.250.209.681	976.329.601
) OFF-BALANCE RECORDS	061	1.448.792.590	1 150 076 345

Item	AOP code	Last year (net)	Current year (net)
1 LIABILITIES AND CAPITAL	$\overline{2}$	3	$\overline{4}$
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078)
I. SUBSCRIBED CAPITAL	062	301.180.049	195.281.833
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
1. Reserves prescribed by low	065	56.417.086	51.781.965
2. Reserves for treasury shares	066	12.532.960	12.532.959
3. Treasury stocks and shares (deduction)	067	43.866.670	39.231.550
4. Statutory reserves	068
5. Other reserves	069
IV. REVALUATION RESERVES	070	17.456	17.456
	071
V. RETAINED EARNINGS OR ACCUMULATED LOSS (073-074) 1. Retained earnings	072	155.502.891	$-20.953.985$
2. Accumulated loss	073	155.502.891
	074		20.953.985
VI. PROFIT/LOSS FOR THE CURRENT YEAR (076-077)	075	$-176.840.330$	$-100.674.245$
1. Profit for the current year	076
2. Loss for the current year	077	176.840.330	100.674.245
IX. MINORITY INTERESTS	078	6.132.241	5.159.937
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	96.886.212
1. Liabilities to related parties	084
2. Liabilities for loans, deposits etc.	085	945.496
3. Liabilities to banks and other financial institutions	086	168.123.077	347.225
4. Liabilities for received prepayments	087		94.978.340
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		1.560.647
D) SHORT - TERM LIABILITIES (094 to 105)
1. Liabilities to related parties	093	763.877.291	668.392.810
2. Liabilities for loans, deposits etc.	094	2.175	6.028.085
3. Liabilities to banks and other financial institutions	095	13.307.340	7.469.807
4. Liabilities for received prepayments	096	374.102.814	375.011.456
5. Accounts payable	097	21.271.550	32.038.074
6. Liabilities arising from debt securities	098	306.020.326	239.997.574
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	3.379.307	3.294.136
10. Liabilities to share - holders	102	7.991.230	3.978.997
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	37.771.586	543.718
F) TOTAL - CAPITAL AND LIABILITIES (062+079+083+093+106)	106	15.630.559	15.315.537
G) OFF-BALANCE RECORDS	107	1.250.209.681	976.329.601
	108	1.448.792.590	1.150.076.345
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
2. Attributed to minority interest	109	295.047.808	190.121.896
	110	6.132.241	5.159.937

PROFIT AND LOSS ACCOUNT
for the period 01.01.2018. do 31.12.2018.

$\blacksquare$

Item		Last year		Current year
$\blacksquare$		Comulative	Quartely	Comulative	Quartely
. OPERATING REVENUE (112+113)	$\overline{2}$	$\overline{\mathbf{3}}$	$\overline{\mathbf{4}}$	5 1	$6\phantom{a}$
1. Sales revenue	111 112	1.036.554.832	255.498.420	675.920.074	154.784.232
2. Other operating revenues	113	1.020.907.676 15.647.156	246.602.845	649.326.701	147.848.480
II. OPERATING EXPENSES (115+116+120+124+125+126+129+130)	114	1.211.208.085	8.895.575	26.593.373	6.935.752
1. Changes in value of work in progress and finished products	115	$-115.783.700$	425.649.104	806.367.593	242.089.872
2. Material costs (117 to 119)	116	1.067.360.210	$-130.268.257$	168.333.048	$-58.740.785$
a) Raw material and material costs	117	705.355.439	405.434.775	458.299.368	216.934.138
b) Costs of goods sold	118	289.953.633	357.354.693 24.753.523	232.437.676	176.452.755
c) Other external costs	119	72.051.138	23.326.559	165.171.145 60.690.547	26.184.293
3. Staff costs (121 to 123)	120	57.281.722	15.798.554	54.517.182	14.297.090 14.134.641
a) Net salaries and wages	121	36.151.010	10.017.796	34.384.346	8.974.137
b) Cost for taxes and contributions from salaries	122	12.946.660	3.543.744	12.431.424	3.162.850
c) Contributions on gross salaries	123	8.184.052	2.237.014	7.701.412	1.997.654
4. Depreciation	124	55.628.465	14.131.633	51.133.774	11.682.855
5. Other costs	125	25.539.035	4.974.846	15.299.879	4.186.520
6. Impairment (127+128)	126	95.264.269	95.264.269	32.995.270	32.995.270
a) Impairment of long-term assets (financial assets excluded)	127
b) Impairment of short - term assets (financial assets excluded)	128	95.264.269	95.264.269	32.995.270	32.995.270
7. Provisions	129
8. Other operating costs	130	25.918.084	20.313.284	25.789.072	20.897.233
III. FINANCIAL INCOME (132 to 136)	131	39.000.322	15.949.547	62.436.313	12.279.246
1. Interest income, foreign exchange gains, dividends and similar income from related parties povezanim poduzetnicima	132	762.239	164.465	1.042.488	274.430
2. Interest income, foreign exchange gains, dividends and similar income from non - related	133	14.787.783	526.632	8.784.595
3. Share in income from affiliated entrepreneurs and participating interests	134				842.073
4. Unrealized gains (income) from financial assets	135	49.500	49.500	300.500
5. Other financial income	136	23.400.800	15.208.950	52.308.730	11.162.743
IV. FINANCIAL EXPENSES (138 do 141)	137	41.421.601	10.097.901	33.615.551	7.945.617
1. Interest expenses, foreign exchange losses, dividends and similar expenses from related	138	706.126	17.078	740.711	43.033
2. Interest expenses, foreign exchange losses, dividends and similar expenses from non -	139	38.562.884	10.077.868	32.866.380	7.894.124
3. Unrealized losses (expenses) on financial assets	140	2.898	2.898	8.460	8.460
4. Other financial expenses	141	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 VII. EXTRAORDINARY - OTHER INCOME	143
VIII. EXTRAORDINARY - OTHER EXPENSES	144
IX. TOTAL INCOME (111+131+142 + 144)	145
X. TOTAL EXPENSES (114+137+143 + 145)	146	1.075.555.154	271.447.967	738.356.387	167.063.478
XI. PROFIT OR LOSS BEFORE TAXATION (146-147)	147	1.252.629.686	435.747.005	839.983.144	250.035.489
1. Profit before taxation (146-147)	148	-177.074.532	$-164.299.038$	$-101.626.757$	$-82.972.011$
2. Loss before taxation (147-146)	149
XII. PROFIT TAX	150	177.074.532	164.299.038	101.626.757	82.972.011
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151)	151		U
1. Profit for the period (149-151)	152	-177.074.532	$-164.299.038$	$-101.626.757$	$-82.972.011$
2. Loss for the period (151-148)	153
	154	177.074.532	164.299.038	101.626.757	82.972.011
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
2. Attributed to minority interest	155	$-176.840.330$	$-164.132.277$	$-100.674.245$	$-82.191.586$
STATEMENT OF OTHER COMPREHENSIVE INCOME (IFRS)	156	$-234.202$	$-166.761$	$-952.512$	$-780.425$
I. PROFIT OR LOSS FOR THE PERIOD (= 152)
II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAX (159 do 165)	157	$-177.074.532$	$-164.299.038$	$-101.626.757$	$-82.972.011$
1. Exchange differences on translation of foreign operations	158	$\mathbf 0$	$\mathbf 0$
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
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
7. Actuarial gains / losses on defined benefit plans	164
III. TAX ON OTHER COMPREHENSIVE INCOME FOR THE PERIOD	165
IV. NET OTHER COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (158-166)	166
V. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (157+167)	167	$\bf{0}$	$\mathbf 0$	$\bf{0}$
APPENDIX to Statement of other comprenhensive income (to be filled in by entrepreneur that prepares consolidated financial report)	168	$-177.074.532$ $-164.299.038$		$-101.626.757$	$-82.972.011$
VI. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD
1. Attributed to equity holders of parent company	169
2. Attributed to minority interest	170	$-176.840.330$	$-164.132.277$	$-100.674.245$	$-82.191.586$
		$-234.202$	$-166.761$	$-952.512$	$-780.425$

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

$\epsilon$

for the period	1.1.2018	do	31.12.2018
Item				AOP code	Last year	Current year
$\blacktriangleleft$ CASH FLOW FROM OPERATING ACTIVITIES				2 1	$3\phantom{.0}$	$\overline{\mathbf{4}}$
1. Profit before tax
2. Depreciation				001	$-177.074.532$	$-101.626.757$
				002	55.628.465	51.133.774
3. Increase in short term liabilities				003	17.828.607	16.833.673
4. Decrease in short term receivables				004	54.597.128	78.424.630
5. Decrease in inventories				005	148.967.579	139.106.040
6. Other increase in cash flow				006	10.591.153	1.708.585
I. Total increase in cash flow from operating activities (001 to 006)				007	110.538.400	185.579.945
1. Decrease in short term liabilities				008	132.918.349	102.871.659
2. Increase in short term receivables				009		9.958.227
3. Increase in inventories				010		3.304.081
4. Other decrease in cash flow				011		22.117.302
II. Total decrease in cash flow from operating activities (008 to 011)				012	132.918.349	138.251.269
A1) NET INCREASE IN CASH FLOW FROM OPERATING ACTIVITIES				013	$\Omega$	47.328.676
A2) NET DECREASE IN IN CASH FLOW FROM OPERATING ACTIVITIES				014	22.379.949	$\mathbf{0}$
CASH FLOW FROM INVESTING ACTIVITIES
1. Cash inflows from sales of long-term tangible and intangible assets				015	162.862	729.289
2. Cash inflows from sales of equity and debt instruments				016
3. Interests receipts				017	3.913.878	9.296.176
4. Dividend receipts				018	77.328	75.390
5. Other cash inflows from investing activities				019	39.246.479	17.025.186
III. Total cash inflows from investing activities (015 to 019)				020	43.400.547	27.126.041
1. Cash outflow for purchase of long-term tangible and intangible assets				021	34.611.917
2. Cash outflow for acquisition of equity and debt financial instruments				022		31.519.701
3. Other cash outflow for investing activities				023
IV. Total cash outflow for investing activities (021 do 023)				024	5.112.305	12.191.005
B1) NET INCREASE IN CASH FLOW FROM INVESTING ACTIVITIES (020-024)				025	39.724.222	43.710.706
B2) NET DECREASE IN CASH FLOW FROM INVESTING ACTIVITIES					3.676.325
CASH FLOW FROM FINANCIAL ACTIVITIES				026	0	16.584.665
1. Cash inflow from issuing property and debt financial instruments				027
2. Proceeds from the credit principal, promissory notes, borrowings and other loans
3. Other proceeds from financial activities				028	494.803.446	398.409.964
V. Total cash inflows from financial activities (027 to 029)				029	8.073.669	9.217.808
1. Cash outflow for repayment of credit principal and bonds				030	502.877.115	407.627.772
2. Cash outflow for dividends paid				031	434.531.763	468.365.119
3. Cash outflow for financial lease				032
4. Cash outflow for purchase of treasury shares				033	2.728.635	798.048
5. Other cash outflow for financial activities				034		4.635.120
VI. Total cash outflow for financial activities (031 to 035)				035	2.682.392	31.837.322
				036	439.942.790	505.635.609
C1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES C2) NET DECREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES				037	62.934.325
Total increase in cash flow (013 - 014 + 025 - 026 + 037 - 038)				038		98.007.837
Total decrease in cash flow $(014 - 013 + 026 - 025 + 038 - 037)$				039	44.230.701
Cash and cash equivalents at the beginning of the period				040	$\Omega$	67.263.826
Increase of cash and cash equivalents				041	27.869.646	72.100.347
Decrease of cash and cash equivalents					44.230.701
Cash and cash equivalents at the end of the period				043 044		67.263.826
					72.100.347	4.836.521

STATEMENT OF CHANGES IN EQUITY
for the period 1.1.2018 do 31.12.2018

Item	AOP code	Last year	Current year
1	2	$\overline{\mathbf{3}}$	$\overline{A}$
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	$-20.953.985$
5. Profit or loss for the current year	005	$-176.840.330$	$-100.674.245$
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)		295.047.808	190.121.896
11. Currency gains and losses arising from net investement in foreign operations	010 011
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)		$\mathbf{0}$	0
17 a. Attributed to equity holders of parent company	018	295.047.808	190.121.896
17 b. Attributed to minority interest	019	6.132.241	5.159.937

Notes

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