AD Plastik d d : Interim Report H1 2021

2021

INTERIM REPORT

BY MANAGEMENT OF AD PLASTIK GROUP AND THE COMPANY AD PLASTIK D.D. SOLIN FOR THE FIRST SIX MONTHS OF 2021

INTERIM UNAUDITED FINANCIAL STATEMENT

Contents

Management Report of AD Plastik Group and the company AD Plastik d.d. Solin
for the period 1. 1. 2021 - 30. 6. 2021...................................................................................................................	3
Operating revenue, EBITDA and Net profit	3
Comment by Marinko Došen, President of the Management Board	4
Financial results for the first six months of 2021	5
Operating revenue per sales markets of AD Plastik Group without affiliated company	10
AD Plastik Group with consolidation of the corresponding ownership part in affiliated company	12
Share	14
Addendum 1 - Alternative performance measures	16
Financial statement of AD Plastik Group............................................................................................................	18
Balance sheet	19
Statement of profit and loss	23
Statement of cash flows (indirect method)	27
Statement of changes in equity	29
Notes to financial statements - QFS	31
Financial statement of the company AD Plastik.................................................................................................	32
Balance sheet	33
Statement of profit and loss	37
Statement of cash flows (indirect method)	41
Statement of changes in equity	43
Notes to financial statements - QFS	45
Management's statement of responsibility........................................................................................................	46

• The financial statements of all companies within the AD Plastik Group have been prepared on the going concern basis.
• The most recent annual financial statement is available on the Zagreb Stock Exchange website at the following link:https://eho.zse.hr/fileadmin/issuers/ADPL/FI-ADPL-e987524e0599f4b6507b528604ef0432.pdf
• The same accounting policies have been applied in preparing the financial statements for the quarterly reporting period as in the most recent annual financial statements.

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INTERIM UNAUDITED FINANCIAL STATEMENT

Operating revenue, EBITDA and Net profit

AD Plastik Group

OPERATING REVENUE	HRK 622.43 million
+13.4% compared to the first six months of 2020

EBITDA	HRK 82.50 million
+9.3% compared to the first six months of 2020

NET PROFIT	HRK 32.43 million
+87.4% compared to the first six months of 2020

The company AD Plastik

				OPERATING REVENUE	HRK 412.30 million
				+5.1% compared to the first six months of 2020

EBITDA	HRK 51.67 million
-22.6% compared to the first six months of 2020

NET PROFIT	HRK 16.80 million
-56.6% compared to the first six months of 2020

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INTERIM UNAUDITED FINANCIAL STATEMENT

Comment by Marinko Došen,

President of the Management Board

Despite very demanding and challenging market conditions, in the first six months we generated operating revenue in the amount of HRK 622.43 million and thus achieved its growth of 13.4 percent compared to the same period last year.

All indicators at the Group level grew, so the EBITDA was realized in the amount of HRK

82.50 million, and the net profit amounted to HRK 32.43 million, which is by 87.4 percent higher than in the same period in 2020.

Demand for cars is growing compared to the first six months of last year, but it will take some more time for it to reach pre-pandemic figures. The business of car manufacturers has been hampered this year due to the consequences of the pandemic and the lack of semiconductors in the market, so car production has been somewhat slowed down. Our European factories have been adapting to the operational plans of their customers, while at the same time our Russian factories have been recording growth of over forty percent compared to the first half of last year. It is evident that the car market in Russia has been recovering faster than others and the consequences of the shortage of semiconductors in that market have not been observed so far.

Along with all the challenges and uncertainties, there is a slight but confident shift towards market recovery. Unfortunately, the pandemic is still present, therefore further caution is necessary. AD Plastik Group has preserved financial stability, reduced financial debt and improved the indebtedness ratio. We monitor global trends and adjust our business, and we are focused on achieving our goals for this year.

Business risk management is our daily task and in these demanding times it has been intensified. Despite that, we have been working smoothly on the development activities for 41 contracted projects in the European and Russian markets. In the first half of the year, we sealed new deals worth EUR 104 million, of which EUR 79.9 million for the Stellantis Group in the European market and EUR 24.1 million for AvtoVAZ, Nissan and Volkswagen Group in the Russian market.

Sealed deals in our portfolio provide us with a secure perspective, while a stable financial position and quality allow us to face current challenges more easily.

This is another challenging year, but we believe that the end of the crisis will be a new and big driver for the AD Plastik Group and the automotive industry as a whole. Our current plans and realization are adapted to the circumstances, but we are ready for the rapid changes and adjustments that the future brings.

Marinko Došen

President of the Management Board

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INTERIM UNAUDITED FINANCIAL STATEMENT

Financial results for the first six months of 2021

AD Plastik Group is comprised of the following companies during the reporting period:

• AD Plastik d.d., Croatia
• AO AD Plastik Togliatti, Russia
• ZAO AD Plastik Kaluga, Russia
• ADP d.o.o., Serbia
• AD Plastik d.o.o., Slovenia
• AD Plastik Tisza Kft., Hungary

(hereinafter: AD Plastik Group)

In the first six months of 2021, the operating revenue of the AD Plastik Group amounted to HRK 622.43 million, which represents an increase of 13.4 percent compared to the same period last year. In the parent company, operating revenue increased by 5.1 percent and amounted to HRK 412.3 million.

Although the number of newly registered vehicles in the Europe- an market increased in the first half of the year, which is expected given it is being compared with the most difficult period of the pandemic and global closure, it will take more time for the figures to return to pre-pandemic levels. Unlike sales, vehicle production is slightly slower compared to the first announcements, largely due to a lack of semiconductors. While the operational plans of the

automotive industry manufacturers and suppliers in the European market are adapting to the situation, Russia is currently exceeding expectations and recording growth in sales of new vehicles even compared to the pre-pandemic year 2019. This fact is supported also by the realization in the Russian factories of the AD Plastik Group, in which revenue grew by over forty percent compared to the same period last year.

EBITDA in the reporting period grew by 9.3 percent at the Group level and amounted to HRK 82.50 million, while in the parent company it was lower by 22.6 percent and amounted to HRK 51.67 mil- lion. EBITDA margin in the first six months of this year was 13.3 percent at the Group level, or 12.5 percent in the parent company.

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