Viro Tvornica ŠEĆERA d.d.

Quarterly Report • Feb 28, 2019

STATEMENT OF PERSON RESPONSIBLE FOR PRODUCTION OF THE THREE-MONTH 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 financial reports of VIRO TVORNICA ŠEĆERA d.d., Zagreb 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 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 25, 2019

TVORNICA ŠEĆERA d.d.

RESPONSIBLE PERSON

PRESIDENT OF THE MANAGEMENT BOARD:

Željko Zadro, dipl.oec

Ivo Rešić, Member of the Management Board

Darko Krstić, Member of the Management Board

Appendix 1 Reporting period:	1.1.2018 to	31.12.2018
	Quarterly Financial Report - TFI-POD
01650971 Registration number (MB)
Identification number of subject (MBS) 010049135
04525204420 Personal identification number (OIB)
Issueer company: VIRO TVORNICA ŠEĆERA d.d.
10000 Postal code and place	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 210
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 3. Report of the Management Board on position of the Company
	TVORNICA ŠEĆERA ZAGREB	(signed by authorised person for representation)

$\label{eq:zeta} \begin{array}{lll} \Xi \end{array}$

$\mathcal{B}$

BALANCE SHEET
as at 30.9.2018

^-

aə al JU.J. LU I U Item	AOP	Last year (net)	Current year
1	code $\overline{2}$		(net)
ASSETS		3	$\overline{4}$
A) RECEIVABLES FOR SUBSCRIBED BUT NOT PAID-IN CAPITAL	001
B) LONG-TERM ASSETS (003+010+020+029+033)	002	692.483.146	649.438.487
I. INTANGIBLE ASSETS (004 to 009)	003	515.755	2.266.166
1. Assets development	004
2. Concessions, patents, licences fees, trade and service marks, software and other rights	005	515.755	2.266.166
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	156.523.874	135.424.536
1. Land	011	5.548.592	5.548.592
2. Buildings	012	62.595.526	59.336.370
3. Plant and equipment	013	49.960.898	32.708.188
4. Tools, facility inventory and transport assets	014
5. Biological assets	015
6. Prepayments for tangible assets	016	34.254.275	33.816.284
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	1.775.707
III. LONG-TERM FINANCIAL ASSETS (021 to 028)	020	535.443.517	511.747.785
1. Investments (shares) with related parties	021	419.833.409	424.406.807
2. Loans given to related parties	022	115.338.105	85.506.383
3. Participating interest (shares)	023
4. Loans to entrepreneurs in whom the entity holds participating interests	024
5. Investments in securities	025	13.848	13.670
6. Loans, deposits and similar assets	026	258.155	1.820.925
7. Other long - term financial assets 8. Investments accounted by equity method	027
IV. RECEIVABLES (030 to 032)	028
1. Receivables from related parties	029	$\mathbf 0$	0
2. Receivables from based on trade loans	030 031
3. Other receivables	032
V. DEFERRED TAX ASSETS	033
C) SHORT TERM ASSETS (035+043+050+058)	034	525.589.492	459.850.497
I. INVENTORIES (036 to 042)	035	168.479.068	132.389.263
1. Raw-material and supplies	036	15.746.983	86.116.520
2. Work in progress	037
3. Finished goods	038	125.761.431	33.585.691
4. Merchandise	039	22.475.298	8.812.000
5. Prepayments for inventories	040	4.495.356	3.875.052
6. Long - term assets held for sales	041
7. Biological assets	042
II. RECEIVABLES (044 to 049)	043	135.261.230	73.878.194
1. Receivables from related parties	044	45.106.773	36.568.429
2. Accounts receivable	045	80.332.841	27.291.561
3. Receivables from participating parties	046
4. Receivables from employees and members of related parties	047	759	15
5. Receivables from government and other institutions	048	9.664.925	7.670.427
6. Other receivables	049	155.932	2.347.762
III. SHORT TERM FINANCIAL ASSETS (051 to 057)	050	159.166.060	253.366.282
1. Shares (stocks) in related parties	051
2. Loans given to related parties	052	152.546.574	244.945.825
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	6.219.986	7.720.457
7. Other financial assets	057	399.500	700.000
IV. CASH AT BANK AND IN CASHIER	058	62.683.134	216.758
D) PREPAID EXPENSES AND ACCRUED REVENUE	059	1.503.946	760.923
E) TOTAL ASSETS (001+002+034+059)	060	1.219.576.584	1.110.049.907
F) OFF-BALANCE RECORDS	061	120.241.416	80.761.205

Item	AOP code	Last year (net)	Current year (net)
$\mathbf{I}$	$\overline{2}$	3	$\overline{4}$
LIABILITIE AND CAPITAL
A) CAPITAL AND RESERVES (063+064+065+071+072+075+078)	062	562.457.426	539.771.174
II. SUBSCRIBED CAPITAL	063	249.600.060	249.600.060
III. CAPITAL RESERVES	064	10.368.101	10.368.101
III.RESERVES FROM PROFIT (066+067-068+069+070)	065	56.346.673	51.711.553
1. Reserves prescribed by low	066	12.480.003	12.480.003
2. Reserves for treasury shares	067	43.866.670	39.231.550
3. Treasury stocks and shares (deduction)	068	0	$\Omega$
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	$-103.442.212$	$-18.051.132$
1. Profit for the current year	076
2. Loss for the current year	077	103.442.212	18.051.132
IX. MINORITY INTERESTS	078
B) PROVISIONS (080 to 082)	079	$\mathbf 0$	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	86.354.623
1. Liabilities to related parties	084
2. Liabilities for loans, deposits etc.	085	572.633	208.554
3. Liabilities to banks and other financial institutions	086	157.071.312	86.146.069
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	499.168.562
1. Liabilities to related parties	094	5.174.487	483.133.031
2. Liabilities for loans, deposits etc.			43.081
3. Liabilities to banks and other financial institutions	095 096	12.999.840	6.462.091
4. Liabilities for received prepayments	097	259.345.545	281.072.338
5. Accounts payable	098	13.553.903 162.866.591	25.170.938
6. Liabilities arising from debt securities			167.748.686
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	1.554.340
10. Liabilities to share - holders	102	6.566.560	840.636
11. Liabilities for long-term assets held for sale	103	30.963	30.963
12. Other short - term liabilities	104
	105	37.203.047	209.958
E) DEFFERED SETTLEMENTS OF CHARGES AND INCOME DEFERRED TO FUTURE PERIOD	106	306.651	791.079
F) TOTAL - CAPITAL AND LIABILITIES (062+079+083+093+106)	107	1.219.576.584	1.110.049.907
G) OFF-BALANCE RECORDS	108	120.241.416	80.761.205
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
	110

$\label{eq:R1} R_{\rm{max}} = \frac{1}{\sqrt{2}} \sum_{i=1}^{N} \frac{1}{\sqrt{2}} \sum_{i=1}^{N} \frac{1}{\sqrt{2}} \sum_{i=1}^{N} \frac{1}{\sqrt{2}} \sum_{i=1}^{N} \frac{1}{\sqrt{2}} \sum_{i=1}^{N} \frac{1}{\sqrt{2}} \sum_{i=1}^{N} \frac{1}{\sqrt{2}} \sum_{i=1}^{N} \frac{1}{\sqrt{2}} \sum_{i=1}^{N} \frac{1}{\sqrt{2}} \sum_{i=1}^{N} \frac{1}{\sqrt{2}} \sum_{i=1}^{N} \frac{1$

$\mathcal{R}^{\mathcal{A}}$

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

VIRO TVORNICA ŠEĆERA d.d.

Item	AOP code		Last year		Current year
		Comulative	Quartely	Comulative	Quartely
I. OPERATING REVENUE (112+113)	$\overline{2}$	3 1	$\overline{\mathbf{A}}$	5 1	6
1. Sales revenue	111 112	853.347.037 847.561.040	205.538.709 202.655.000	545.387.604 527.680.742	107.671.513 104.841.396
2. Other operating revenues	113	5.785.997	2.883.709	17.706.862	2.830.117
II. OPERATING EXPENSES (115+116+120+124+125+126+129+130)	114	971.021.818	312.326.476	607.620.714	160.898.679
1. Changes in value of work in progress and finished products
i and finished products	115	51.579.918	$-17.504.955$	84.799.681	$-4.886.994$
2. Material costs (117 to 119)	116	792.713.851	252.312.858	443.507.606	131.619.531
a) Raw material and material costs	117	445.959.970	196.407.734	110.021.199	98.110.337
b) Costs of goods sold $\bullet$	118	299.118.195	41.939.572	295.196.809	25.127.883
c) Other external costs	119	47.635.686	13.965.552	38.289.598	8.381.311
3. Staff costs (121 to 123)	120	24.927.334	7.178.735	24.293.618	6.581.071
a) Net salaries and wages	121	15.630.214	4.529.475	15.245.560	4.123.871
b) Cost for taxes and contributions from salaries	122	5.792.476	1.652.205	5.695.085	1.558.799
c) Contributions on gross salaries	123	3.504.644	997.055	3.352.973	898.401
4. Depreciation	124	26.285.861	6.558.995	23.853.533	4.852.911
5. Other costs	125	11.454.071	2.689.104	6.209.923	1.942.095
6. Impairment (127+128)	126	43.734.351	43.734.351	10.759.251	10.759.251
a) Impairment of long-term assets (financial assets excluded)	127
b) Impairment of short - term assets (financial assets excluded)	128	43.734.351	43.734.351	10.759.251	10.759.251
7. Provisions	129
8. Other operating costs	130	20.326.432	17.357.388	14.197.102	10.030.814
III. FINANCIAL INCOME (132 to 136) 1. Interest income, foreign exchange gains, dividends and similar income from related	131	45.085.414	18.280.477	68.674.111	14.770.146
parties 2. Interest income, foreign exchange gains, dividends and similar income from non - related	132	8.405.018	2.664.121	13.693.908	3.011.444
parties and other entities	133	13.296.539	323.766	7.830.281	612.458
3. Share in income from affiliated entrepreneurs and participating interests	134
4. Unrealized gains (income) from financial assets	135	49.500	49.500	300.500
5. Other financial income	136	23.334.357	15.243.090	46.849.422	11.146.244
IV. FINANCIAL EXPENSES (138 do 141)	137	30.852.845	8.261.295	24.492.133	4.707.431
1. Interest expenses, foreign exchange losses, dividends and similar expenses from related parties	138	3.833.794	104.223	3.165.211	153.836
2. Interest expenses, foreign exchange losses, dividends and similar expenses from non -	139	25.605.471	6.743.492	21.326.922	4.553.595
related parties and other entities 3. Unrealized losses (expenses) on financial assets	140
4. Other financial expenses	141	1.413.580	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
VIII. EXTRAORDINARY - OTHER EXPENSES	144
IX. TOTAL INCOME (111+131+142 + 144)	145
	146	898.432.451	223.819.186	614.061.715	122.441.659
X. TOTAL EXPENSES (114+137+143 + 145)	147	1.001.874.663	320.587.771	632.112.847	165,606,110
XI. PROFIT OR LOSS BEFORE TAXATION (146-147)	148	$-103.442.212$	-96.768.585	$-18.051.132$	$-43.164.451$
1. Profit before taxation (146-147)	149	$\Omega$	$\Omega$
2. Loss before taxation (147-146)	150	103.442.212	96.768.585	18.051.132	43.164.451
XII. PROFIT TAX	151
XIII. PROFIT OR LOSS FOR THE PERIOD (148-151)	152	$-103.442.212$	-96.768.585	$-18.051.132$	$-43.164.451$
1. Profit for the period (149-151)	153	$\circ$	0	$\Omega$
2. Loss for the period (151-148)	154	103.442.212	96.768.585	18.051.132	43.164.451
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	$-103.442.212$	$-96.768.585$	$-18.051.132$	$-43.164.451$
II. OTHER COMPREHENSIVE INCOME / LOSS BEFORE TAX (159 do 165)	158	$\bf{0}$	$\mathbf{0}$	$\mathbf{0}$
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
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	$\mathbf 0$	$\mathbf{0}$	$\Omega$
V. COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (157+167)	168	$-103.442.212$	$-96.768.585$	$-18.051.132$	$-43.164.451$
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

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

for the period	1.1.2018	do	31.12.2018
Item				AOP code	Last year	Current year
$\overline{1}$				$\overline{2}$	$\overline{\mathbf{3}}$	$\overline{4}$
CASH FLOW FROM OPERATING ACTIVITIES
1. Profit before tax				001	$-103.442.212$	$-18.051.132$
2. Depreciation				002	26.285.861	23.853.533
3. Increase in short term liabilities				003
4. Decrease in short term receivables				004	49.151.393	61.383.036
5. Decrease in inventories				005	266.462.606	36.089.805
6. Other increase in cash flow				006	4.122.772	1.227.451
I. Total increase in cash flow from operating activities (001 to 006)				007	242.580.420	104.502.693
1. Decrease in short term liabilities				008	197.286.293	26.055.751
2. Increase in short term receivables				009
3. Increase in inventories				010
4. Other decrease in cash flow				011	138.691.642	106.516.307
II. Total decrease in cash flow from operating activities (008 to 011)				012	335.977.935	132.572.058
A1) NET INCREASE IN CASH FLOW FROM OPERATING ACTIVITIES				013
AKTIVNOSTI (007-012) A2) NET DECREASE IN IN CASH FLOW FROM OPERATING ACTIVITIES				014	93.397.515	28.069.365
AKTIVNOSTI (012-007) CASH FLOW FROM INVESTING ACTIVITIES
1. Cash inflows from sales of long-term tangible and intangible assets				015	116,182	555.061
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	39.199.285	35.886.737
III. Total cash inflows from investing activities (015 to 019)				020	43.306.673	45.813.364
1. Cash outflow for purchase of long-term tangible and intangible assets				021	3.314.904	5.059.667
2. Cash outflow for acquisition of equity and debt financial instruments				022
3. Other cash outflow for investing activities				023	5.495.673	12.191.005
IV. Total cash outflow for investing activities (021 do 023)				024	8.810.577	17.250.672
B1) NET INCREASE IN CASH FLOW FROM INVESTING ACTIVITIES (020-024) B2) NET DECREASE IN CASH FLOW FROM INVESTING ACTIVITIES				025	34.496.096	28.562.692
AKTIVNOSTI (024-020)				026
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	319.727.993	304.946.725
3. Other proceeds from financial activities				029	8.000.000	9.200.000
V. Total cash inflows from financial activities (027 to 029)				030	327.727.993	314.146.725
1. Cash outflow for repayment of credit principal and bonds				031	225.326.141	356.373.260
2. Cash outflow for dividends paid				032
3. Cash outflow for financial lease				033	2.728.635	798.048
4. Cash outflow for purchase of treasury shares				034		4.635.120
5. Other cash outflow for financial activities				035	500,000	15.300.000
VI. Total cash outflow for financial activities (031 to 035)				036	228.554.776	377.106.428
C1) NET INCREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES AKTIVNOSTI (030-036)				037	99.173.217
C2) NET DECREASE IN CASH FLOW FROM FINANCIAL ACTIVITIES AKTIVNOSTI (036-030)				038		62.959.703
Total increase in cash flow (013 - 014 + 025 - 026 + 037 - 038)				039	40.271.798
Total decrease in cash flow $(014 - 013 + 026 - 025 + 038 - 037)$				040		62.466.376
Cash and cash equivalents at the beginning of the period				041	22.411.336	62.683.134
Increase of cash and cash equivalents				042	40.271.798
Decrease of cash and cash equivalents				043	0	62.466.376
Cash and cash equivalents at the end of the period				044	62.683.134	216.758

$\label{eq:1.1} \begin{array}{lll} \mathcal{B} & \mathcal{B} & \end{array}$

$\overline{\phi}$

STATEMENT OF CHANGES IN EQUITY 31.12.2018

for the period 1.1.2018 do AOP Item Last year Current year code $\overline{1}$ $\overline{2}$ $3³$ $\overline{4}$ 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 51.711.553 4. Retained earnings or accumulated loss 004 349.584.804 246.142.592 5. Profit or loss for the current year 005 $-103.442.212$ $-18.051.132$ 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) 010 562.457.426 539.771.174 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 $\circ$ $\mathbf{0}$ 17 a. Attributed to equity holders of parent company $018$ 17 b. Attributed to minority interest 019

$\lambda$

Notes

ä.

$\lambda$

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

$\overline{\mathcal{D}}$