Cakovecki mlinovi d d : Čakovečki mlinovi Inc. - Q1 2023

ČAKOVEČKI MLINOVI INC.

QUARTERLY FINANCIAL REPORT

FOR Q1 2023

CONTENT
INTERIM MANAGEMENT REPORT FOR Q1 2023	3
1.	BUSINESS RESULTS IN Q1 2023	4
	ABOUT THE COMPANY	4
	BUSINESS SEGMENT	4
	KEY FINANCIAL INDICATORS OF THE COMPANY	5
2.	EXPECTED BUSINESS DEVELOPMENT IN 2023	6
FINANCIAL STATEMENTS FOR Q1 2023	8

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ČAKOVEČKI MLINOVI INC.

INTERIM MANAGEMENT REPORT

FOR Q1 2023

1. BUSINESS RESULTS IN Q1 2023

ABOUT THE COMPANY

Čakovečki mlinovi Inc. (hereinafter: "Čakovečki mlinovi" or " Company"), founded in 1893 in Čakovec, is one of the oldest Croatian food and trade companies. The Company manages a vertically integrated business model that includes the production of high-quality mill, bakery and oil products on one hand and trade of mixed goods on the other. Although food production is a tradition and heritage of the Company, through a series of successful acquisitions and integration of trade chains the Company has grown into a business system that today generates most of its revenue from trade activities.

Čakovečki mlinovi Inc. has three subsidiaries: Trgovina Krk Inc. Malinska, Trgocentar Inc. Virovitica and Radnik

Opatija Inc. Lovran (together: "Čakovečki mlinovi Group" or "Group") and one associated company: Narodni trgovački lanac Ltd. Soblinec. Čakovec mlinovi Inc. in addition to the non-consolidated reports of the Companies, they also prepare the consolidated reports of the Group separately.

In Q1 2023, Čakovečki mlinovi Inc. generated 7.5 million euros in total revenue based on total assets in the amount of 34 million euros. As at 31 March 2023, the Company employed 206 employees, and in Q1 2023 on average 195 FTE employees.

The shares of Čakovečki mlinovi Inc. are listed on the Official Market of the Zagreb Stock Exchange (as of 18 April 2023) under the symbol CKML. As at 31 March 2023 the Company has 10,290,000 of issued and listed shares with a market capitalization in the amount of EUR 106 million.

BUSINESS SEGMENT

Company Čakovečki mlinovi Inc. operates in one business segment at the company level (food production) and reports accordingly in non-consolidated financial statements. The company as a whole is part of the segmental reporting of the Čakovečki mlinovi Group, whose operations are presented within the consolidated financial statements. Users of the Company's quarterly unconsolidated report should read it together with the quarterly consolidated report for Q1 2023, for the purpose of obtaining complete information on the financial position and results of operations of the Company and the Group.

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KEY FINANCIAL INDICATORS OF THE COMPANY
INCOME STATEMENT			1.-3. 2023. /
(in millions of euros)	1.-3. 2023.	1.-3. 2022.	1.-3. 2022.
Sales revenue	7,4	6,6	12,6%
Operating costs, net1	6,5	6,4	1,5%
EBITDA2	0,9	0,2	338,6%
Normalized EBITDA3	0,9	0,2	331,3%
Depreciation	0,3	0,2	31,2%
EBIT4	0,7	0,0	N/A
Net financial result5	-0,02	0,0	N/A
Net profit (loss)	0,5	0,0	N/A
Profit margins6
EBITDA margin	12,8%	3,3%	9,5 pb
Normalized EBITDA margin	12,5%	3,3%	9,2 pb
EBIT margin	8,9%	0,0%	9,0 pb
Net profit margin	7,1%	-0,1%	7,1 pb
			31.3.2022. /
Balance sheet (in millions of euros)	31.3.2022.	31.12.2022.	31.12.2022.
Net debt (cash)7	-0,3	1,1	-123,0%
Neto debt (cash) / Norm. EBITDA
(TTM)8	28,2	27,7	1,9%
Equity	12,0	13,2	-8,6%
			1.-3. 2023. /
CASH FLOWS (millions of euros)	1.-3. 2023.	1.-3. 2022.	1.-3. 2022.
Net operating cash flows	1,5	-1,4	-207,5%
Capital expenditures (CapEx)9	0,2	0,1	167,4%
Dividends paid	0,0	0,0	0,0%

1 Operating expenses, net includes operating expenses less depreciation, other operating income and revenue based on the use of own products, goods and services; the detailed calculation is shown under Operating costs of this part of the report.

2 EBITDA (earnings before interest, taxes, depreciation and amortization) represents operating profit before depreciation; calculated as operating revenue - operating expenses + depreciation.

3 Normalization implies adjustment for one-off items; a detailed calculation is shown under Normalization of EBITDA of this part of the report.

4 EBIT (earnings before interest and taxes) represents operating profit; calculated as operating income - operating expenses.

5 Net financial result is calculated as financial revenue + associated profit share (NTL) - financial expenses.

6 Profit margins are calculated on the basis of sales revenue.

7 Net debt (cash) includes long-term and short-term financial liabilities minus cash in bank and cash register and deposits with banks. Deposits with banks are included in net debt regardless of maturity as they are available on call.

8 Net working capital includes inventories plus short-term receivables from customers minus short-term liabilities to suppliers and advances. 9 CapEx (capital expenditures) are expenditures for the purchase of long-term tangible and intangible assets.

Note: The amounts in this section as well as in the rest of the report are rounded to one decimal place.

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