In the first nine months of 2017, the Đuro Đaković Group had a total revenue of 405,9 million HRK and total expenditure of 417,7 HRK.

At the same time, positive EBITDA margin (earnings before interest, taxes, depreciation and amortisation) was reached in the amount of 18,2 million HRK, which makes the EBITDA margin of 4,5% and negative profit margin of 2,9 %. It is important to emphasise that EBITDA has been improved for 3,8 million HRK, compared to the year before.

In the first nine months of 2017, the Đuro Đaković Group had operating loss in the amount of 11,7 million HRK. There are three main reasons for the operating loss: losses generated in the company Đuro Đaković Industrijska rješenja d.d., extremely high expenditures, as well as negative exchange rates.

Đuro Đaković Industrijska rješenja d.d. is the only company where the restructuring measures that have been implemented did not give results and where additional measures have been implemented in the last two months. Tangible results of these measures are expected till the end of the year. Of all the companies owned by Đuro Đaković Group Plc., this is the only company that generated operating loss.

Without the company Đuro Đaković Industrijska Rješenja d.d., the Đuro Đaković Group would have made a profit of 6,1 million HRK (profit margin 1,5%) as well as positive EBITDA in the amount of 23 million HRK (margin 5,8%).

Also, for the first time in recent history, the Đuro Đaković Group generated more than half of its incomes from export, which means that the strategic decision on expanding the markets and reducing dependence on Croatian market has been achieved in full. Total export has been increased by 100,3%, i.e. it is 113 million HRK higher in comparison with the results from 2016. The major portion of export was achieved in the Transport Sector, but Defence and Industry and Energetic Sectors also achieved higher export than the year before.

It is clear that the group has to deal with the remaining problems, which has to lead to the long-term sustainable business. It is primarily additional capitalisation, which has to lead to stable sources of operating funds.

Till the end of 2017, the Đuro Đaković Group expects to create pre-conditions for achieving two key objectives remaining for completing the restructuring process.

The first objective refers to the nominal capital increase with which the group would get stable and sufficient funding sources for long-term sustainable business. Regarding the current suspension of the nominal capital increase procedure, but also the interest of the potential investor that is still present, we believe that this objective will still be achieved with an unplanned delay, and the company will find other funding sources till the end of 2017.

Besides the positive effect of the nominal capital increase procedure, the group also expects positive effects of the entry of the strategic partner into the ownership structure by expanding the existing and opening new markets for the products of the group, which is in accordance with the objectives set at the beginning of the restructuring process.

The second key objective is solving the problems in the company Đuro Đaković Industrijska rješenja d.d. in the way that the company does not accumulate losses that hinder the development of the whole Đuro Đaković Group. The measures that have been implemented in the previous period, as well as measures that will be implemented till the end of the year, must lead to the stabilisation of the situation in the above mentioned company and solve the problem of insolvency.

Until 30th September 2017 the Đuro Đaković Group had signed contracts in the amount of 569,3 million HRK. Since the group is taking part in several major tenders, it is expected that there will be even more works contracted till the end of 2017.