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M SAN GRUPA ANNUAL REPORT 2023 1
ANNUAL
Report
This version of
the Consolidated
financial statements
is a translation from
the original, which
was prepared in the
Croatian language.
All possible care has
been taken to ensure
that the translation is an
accurate representation
of the original. However, in
all matters of interpretation
of information, views
or opinions, the original
language version of the
Consolidated financial
statements takes precedence
over translation
2023
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M SAN GRUPA ANNUAL REPORT 20232
M SAN GRUPA ANNUAL REPORT 2023
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4
6
8
22
34
46
60
66
69
79
84
89
OVERVIEW OF KEY INDICATORS IN 2023
A COMMENT FROM THE PRESIDENT OF THE MANAGEMENT BOARD
ABOUT US
CORPORATE GOVERNANCE
OPERATIVE BUSINESS
FINANCIAL OPERATIONS OF THE GROUP
BUSINESS RISKS
PLANS AND EXPECTATIONS FOR 2024
INDEPENDENT AUDITOR’S REPORT
CONSOLIDATED FINANCIAL STATEMENTS
SEPARATE FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
CONTENT
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M SAN GRUPA ANNUAL REPORT 20234
M SAN GRUPA ANNUAL REPORT 2023
OVERVIEW OF KEY INDICATORS IN 2023
GROUP IN 2023
471.7 million
BUSINESS REVENUE*
(IN EURO)
11.0 million
EBITDA*
(IN EURO)
8.3 million
EBIT*
(IN EURO)
4.6 million
NET PROFIT*
(IN EURO)
+9.1%
DIFFERENCE
(COMPARED TO 2022)
+4.6%
DIFFERENCE
(COMPARED TO 2022)
+20.8%
DIFFERENCE
(COMPARED TO 2022)
+174.2%
DIFFERENCE
(COMPARED TO 2022)
*The financial measures used are not defined by International Financial Reporting Standards. For more details on the Alternative
Performance Indicators used, see Table 5. Alternative Performance Measures
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M SAN GRUPA ANNUAL REPORT 2023 5
*The financial measures used are not defined by International Financial Reporting Standards. For more details on the Alternative
Performance Indicators used, see Table 5. Alternative Performance Measures
COMPANY IN 2023
336.4 million
BUSINESS REVENUE*
(IN EURO)
+3.3%
DIFFERENCE
(COMPARED TO 2022)
5.7 million
EBITDA*
(IN EURO)
4.8%
DIFFERENCE
(COMPARED TO 2022)
4.3 million
EBIT*
(IN EURO)
+10.8%
DIFFERENCE
(COMPARED TO 2022)
1.4 million
NET PROFIT*
(IN EURO)
+294.3%
DIFFERENCE
(COMPARED TO 2022)
OVERVIEW OF KEY INDICATORS IN 2023
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M SAN GRUPA ANNUAL REPORT 20236
M SAN GRUPA ANNUAL REPORT 2023
A COMMENT
IRENA LANGER-BREZNIK,
President of the Management Board
In the past 2023, M SAN GRUPA successfully managed through a dynamic
economic environment, demonstrating exceptional resilience and adaptability.
Despite constant market changes and external influences, our Group maintained
a high level of stability and agility.
Relying on activities aimed at strengthening organizational structures, process
optimization and continuous development of competencies, we achieved a
record revenue of EUR 471.7 million, which represents a 9.1% growth compared
to the previous year. We also recorded a 4.6% increase in EBITDA, while net
profit increased by 174.2%. These results clearly confirm the effectiveness of our
strategic initiatives and operational excellence.
All key indicators of our business point to our focus and strong commitment to
distribution, which resulted in a 6.9% increase in the number of active partners,
i.e. a 42.9% growth in the share of web B2B sales, as well as a 4.6% increase
in the sales of our own brands. Effective inventory management reduced days
of inventory on hand by 26.9%, clearly demonstrating our commitment to
optimizing resources and improving cash flow.
An important further step in our development was the acquisition of Data Link in
July 2023, which expanded our market potential in the LED lighting segment. This
strategic move underscores our commitment to diversification and innovation,
positioning M SAN Grupa as a leader in emerging technology markets.
The integration of Alterna Distribution into M SAN GRUPA after the acquisition,
concluded in November 2022, was also a significant event that strengthened our
presence in the Slovenian market, contributing to our overall growth strategy.
The strength of our distribution, the optimization of business processes and
quality strategic management have enabled us to preserve jobs, improve the
conditions for our employees and improve the results and practices that form
the basis of good corporate practice. We thank our employees, customers,
suppliers and partners for their commitment and cooperation, and we look
forward to further building a successful future together.
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M SAN GRUPA ANNUAL REPORT 2023 7
IRENA LANGER - BREZNIK
President of the Management Board
M SAN GRUPA ANNUAL REPORT 2023 7
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M SAN GRUPA ANNUAL REPORT 20238
M SAN GRUPA ANNUAL REPORT 2023
ABOUT US
THE M SAN GRUPA is a limited liability Company for
computer production, trade and import-export
with its headquarters in Rugvica, Dugoselska
ulica 5, represented by the President of the
Management Board, Mrs. Irena Langer-Breznik,
Company registration number: 080157581, was
registered at the Commercial Court in Zagreb in
1995 under the name M SAN d.o.o., and in 1997 it
got its current name.
The M SAN Grupa is the largest private IT
Company
in the Republic of Croatia. Within
the M SAN Grupa, whose primary activity is the
distribution of computer hardware, software and
consumer electronics, companies in the region
such as Kim Tec Bosnia and Herzegovina, Kim Tec
Serbia, Kim Tec Montenegro and Pakom Kompani
North Macedonia operate, among others, and
from the end of 2022 and Alterna distribucija d.o.o.
in Slovenia. In July 2023, the Company concluded
the acquisition of the company Data Link, which
specializes in the production of professional LED
lighting and develops products and production
technology, software solutions and the
technology of LED lighting fixtures. In addition to
the above, the Group produces IT equipment and
consumer electronics of its own brands, which
includes TV sets, air conditioners, lighting fixtures
(LED lamps), white goods, desktop computers
and electric mobility products (electric scooters,
electric bicycles and electric motocycles), which it
also distributes through its distribution network.
In the portfolio, the Group also has a logistics activity
that primarily includes storage, manipulation and
transport of goods (M SAN LOGISTIKA), a service
activity for the provision of servicing and repair
of goods during the warranty and non-warranty
periods (MR Servis d.o.o., KIM TEC-SERVIS d.o.o.
Vitez, KIM TEC SERVIS d.o.o. Belgrade) and the
collection and disposal of electrical and electronic
waste (M SAN EKO d.o.o., KIM TEC EKO d.o.o. Vitez).
The Group has one subsidiary.
Since its establishment, the Group has
implemented a strategy of strengthening its
portfolio with all major world-renowned brands
of IT equipment and consumer electronics.
Special emphasis is placed on the production
and development of our own brands, with
production taking place in the People’s Republic
of China, the Republic of Turkey, the Republic
of Croatia and the Republic of Serbia. Most
of the production takes place in the plants of
third parties, while in the plants of the Group’s
companies, in the Republic of Croatia and the
Republic of Serbia, the assembly of personal
computers, TV sets and electric bicycles takes
place, as well as the production of led lighting
of our own brands. In parallel, the expansion of
the Group’s operations in the Adriatic region is
being carried out by establishing companies
and logistics centres with the development of
its own logistics, as well as service and service
support. Its own regional logistics network is
one of the Group’s key competitive advantages.
Since entering the market until today, we have
gained the trust of our customers, partners and
suppliers, the number of which is constantly
increasing. We are proud that we have become
one of the best distributors on the regional IT
and CE market from our beginning until today.
We attribute our position as a market leader to
the commitment of our employees, suppliers,
customers and stakeholders, because we firmly
believe that achieving common goals leads to
success and enables additional expansion and
improvement of our own business.
The Company does not carry out research and
development activities. The Company will
publish a non-financial report with all relevant
parameters on the website (www.msan.hr)
within
the legally stipulated period.
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M SAN GRUPA ANNUAL REPORT 2023 9
29
YOUR RELIABLE PARTNER
YEARS
M SAN GRUPA ANNUAL REPORT 2023 9
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M SAN GRUPA ANNUAL REPORT 202310
M SAN GRUPA ANNUAL REPORT 2023
BUSINESS MODEL
The business model of the M SAN Grupa is based on building and maintaining trust and reliability of
cooperation with suppliers and customers, developing a diverse product portfolio and financial stability,
and special care that is devoted to products of its own brands.
We have acquired a large number of satisfied partners and customers by investing in production, distribution,
marketing and development. Our own brands that we are proud of are VIVAX in the consumer electronics
range, MS Energy in the e-mobility range, MSGW computers, MS in the range of peripherals, cables, drones,
housings, power supplies and accessories for mobile phones, laptops and desktops, Solmacht which covers
the field of solar systems and MS Lux which offers a range of LED lighting products.
The VIVAX brand as a domestic product has been present on the Croatian market since
2004, and has been placed on a total of 39 markets, meaning 4 continents. Today, the VIVAX
range offers more than 300 different products that can be divided into 5 product Groups: TV and audio, Air
conditioning (air conditioners, heat pumps), Small home appliances, White goods and Smart devices (smart
watches and tablets). The entire range and design of VIVAX products is completely designed in Croatia, and
high quality standards are ensured by the implementation of strict procedures in production processes
with a special emphasis on quality control processes. VIVAX is part of a Group of rare European consumer
electronics brands that manufacture their products on European soil. Also, M SAN has a production line of
LED TV devices with diagonal sizes from 22’’ to 65’’, which takes place in its own premises in Rugvica. This
production is intended for the Croatian market, as well as the European Union market.
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M SAN GRUPA ANNUAL REPORT 2023 11
BUSINESS MODEL
is our own brand of electric scooters, bicycles and all other modern personal
electric transportation systems. It has been present on the Croatian market since
2019, and today’s range of MS Energy is divided into four categories: electric bicycles, electric scooters,
electric motorcycles and accessories. In today’s world, where mobility and ecology define a new lifestyle,
MS Energy provides answers to customer demands for sustainable, simple and smart transport solutions,
the for complete e-mobility.
The reliability and quality of e-mobility products is one of the foundations of the MS Energy brand. The
product creation strategy and the entire production process are based on the use of proven technological
solutions, and the very idea of creating a product is based on the desire to offer the user a complete,
reliable, environmentally friendly and economical solution to the issue of urban mobility.
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M SAN GRUPA ANNUAL REPORT 202312
M SAN GRUPA ANNUAL REPORT 2023
is one of the leading European manufacturers of professional lighting.
Utilizing state-of-the-art LED technology, it replicates sunlight, adapting
and optimizing it for all needs with the smallest ecological footprint. It has evolved from
two established brands of professional LED lighting:
DATA Link - specializing in the production and development of lighting for special purposes,
work lighting, and explosion-proof lighting for industrial applications.
LEDA - the production development of MS Lux lighting began under the LEDA brand in
2015. From its inception, the development has been strategically focused on public and
industrial lighting, having supplied public lighting for over 100 cities and municipalities in
Croatia, Bosnia and Herzegovina, Macedonia, Slovenia, Serbia, and the surrounding region.
In addition to lighting fixtures, solutions based on IoT technologies for monitoring and
managing lighting have been implemented.
This product group consists of several lines of public lighting: street lighting, ambient
lighting, and floodlights.
BUSINESS MODEL
has been on the Croatian market since 2005 as M SAN’s own brand. All
computers are manufactured in the Group’s automated IT equipment
production facility and have undergone numerous testings of correctness. MSGW
computers meets all the necessary requirements set by Microsoft for full compatibility of
built-in components with the Windows operating system.
12
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M SAN GRUPA ANNUAL REPORT 2023 13
is a private brand of
the M SAN Grupa,
which combines the production and
sale of computer peripherals including
headphones, speakers, keyboards
and mice, as well as housings, power
supplies and cables. With a 20-year
tradition, it successfully operates on the
Croatian market and regional markets
(Serbia, Bosnia and Herzegovina,
Macedonia, Montenegro) and is
expanding its operations to other
EU markets as well. Each stage of
the production cycle is subject to
strict quality control, which ensures
the reliability and functionality of
each device, and ultimately a quality
product at an affordable price.
is an own brand in the portfolio of M SAN GRUPA, created in response to market
needs for complete solutions in the field of solar power plants production. Through the framework of
Solmacht, business and private users are provided with a complete service for the production of solar
power plants: from the conceptual design and detailed solar power plant project in accordance with the
needs of users, professional assistance in the process of obtaining permits and approvals, the supply of
all components for the production of the solar power plant according to the design, the organization of
execution and supervision, all the way to commissioning.
BUSINESS MODEL
M SAN GRUPA ANNUAL REPORT 2023 13
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M SAN GRUPA ANNUAL REPORT 202314
M SAN GRUPA ANNUAL REPORT 2023
Croatia
Croatia
Slovenia
95%
60%*
24%
60%
Croatia
CroatiaSlovenia
Croatia
Serbia
IT & CE distribution
*on December 31, 2023, the company did not participate in the consolidation.
Agriculture Logistics
Serbia
Bosnia and
Herzegovina
North Macedonia Montenegro
Servis
Servis
KimTec
Croatia
Ecommerce Service
ICT
North Macedonia
Real estate
EE waste disposal
Croatia
Legend
Centar kompetencija
za zelenu energiju
OVERVIEW OF RELATED COMPANIES
OF M SAN GRUPA
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M SAN GRUPA ANNUAL REPORT 2023 15
Croatia
Croatia
Slovenia
95%
60%*
24%
60%
Croatia
CroatiaSlovenia
Croatia
Serbia
IT & CE distribution
*on December 31, 2023, the company did not participate in the consolidation.
Agriculture Logistics
Serbia
Bosnia and
Herzegovina
North Macedonia
Montenegro
Servis
Servis
KimTec
Croatia
Ecommerce Service
ICT
North Macedonia
Real estate
EE waste disposal
Croatia
Legend
Centar kompetencija
za zelenu energiju
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M SAN GRUPA ANNUAL REPORT 202316
M SAN GRUPA ANNUAL REPORT 2023
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M SAN GRUPA ANNUAL REPORT 2023 17
The M SAN Grupa d.o.o. is the leading distributor of IT products and consumer electronics of more
than 60 of the world’s most reputable manufacturers and more than 15,000 products.
The following stand out among them: Microsoft, Hewlett Packard, Samsung, Acer, Asus, IBM, LG
Electronics Inc, Panasonic, Lenovo, Toshiba, Transcend, Western Digital...
The M SAN Grupa has expanded its range with a full range of quality products from which every
business or home user can choose a product according to their wishes and capabilities.
The M SAN Grupa’s logistics is among the most developed in the region, which
ensures fast and accurate delivery.
The M SAN Grupa has over 7,400 partners inside and outside Croatia. Sales channels consist of
commodity chains, IT and CE retailers and system integrators. Internal sales teams of the M SAN
Grupa were also developed according to the sales channels according to product Groups. Through
the ‘Enterprise’’ sales segment, the M SAN Grupa offers high added value through knowledge and
complex solutions for partners such as system integrators and similar.
With a large number of partners, the Group has significantly diversified its operations, where the largest
unrelated customer accounts for 1.5% of the total annual turnover. The Group invests significantly in
the sales channels of exports to third countries (countries where there are no subsidiaries), so the
total share of exports to third parties amounted to 15.8% in 2023
.
PORTFOLIO, SALES CHANNELS, PARTNERS
M SAN GRUPA ANNUAL REPORT 2023 17
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M SAN GRUPA ANNUAL REPORT 202318
M SAN GRUPA ANNUAL REPORT 2023
1995
The Company M SAN
d.o.o. was founded.
1997
The Company M SAN Grupa d.o.o.
was founded, to which the operations
of the Company M SAN d.o.o. were
transferred.
1999
The Company KIM TEC d.o.o.
was founded. Vitez, Bosnia and
Herzegovina
2006
Business shares in Pakom
Kompani (North Macedonia)
acquired
2005
The Company KIM TEC
CG d.o.o. was founded.
Podgorica, Montenegro
2021
Issuance of
a corporate bond,
SOLMACHT brand
registered
2022.
Acquired business shares
in the company Alterna
distribucija (Slovenia)
2023
Acquired business
shares in the company
DATA LINK d.o.o. Bjelovar
2008
Business shares in the companies
Elektromagic (Croatia and Bosnia
and Herzegovina), Recos (Bosnia
and Herzegovina) acquired
2009
The companies
M SAN EKO, KIM-TEC Servis
BG and KIM-TEC Servis Vitez
were founded
2013
Kim TEC Eko was founded,
MS brand registered
2019
MS ENERGY brand
registered
2004
The Company KIM-TEC
d.o.o. Belgrade was
founded, Republic of Serbia
2004
VIVAX brand
registered
HISTORICAL DEVELOPMENT OF
Group
MR Servis d.o.o.
was founded
M SAN GRUPA ANNUAL REPORT 202318
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M SAN GRUPA ANNUAL REPORT 2023 19
The operating business of the Group is organized through four divisions:
•
ITCE – distribution of IT equipment and consumer electronics;
•
Enterprise – value-added distribution for customized hardware-software solutions;
•
VIVAX – production and distribution of its own brand, over 300 items in all categories (TV and
audio, air conditioning, white goods, small home appliances, smart devices).
•
Zelena – production and distribution of own brands of electric mobility and professional LED
lighting, distribution of solar power plant components.
The heads of the Company’s divisions are also responsible for the divisions in the regional
members, which at the same time comprise four sales channels whose motto is “One Company
on many different markets”.
ORGANIZATIONAL STRUCTURE
The M SAN Grupa is a limited liability company. The sole owner of the Company is Mr. Stipo Matić.
The Company does not own its own shares and does not implement a program to buy them back.
Supervisory Board:
Željko Menalo, President of the Supervisory Board since January 1, 2023
Miroslav Huzjak, Deputy President of the Supervisory Board since January 1, 2023
Stipo Matić, member of the Supervisory Board,
Marko Rašić, member of the Supervisory Board,
Snježana Matić, member of the Supervisory Board until April 7, 2024
Management Board:
Irena Langer-Breznik, President of the Management Board since 1 January 2023
Žarko Kruljac, Vice-President of the Management Board since 1 October 2022
Slaven Stipančić, member of the Management Board,
Goran Kotlarević, member of the Management Board,
Alen Panić, member of the Management Board since 1 October 2022
Vladimir Brkljača, member of the Management Board since 1 October 2022
Miroslav Gabrić, member of the Management Board from 6 May 2022 to 8 March 2023
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M SAN GRUPA ANNUAL REPORT 202320
M SAN GRUPA ANNUAL REPORT 2023
ORGANIZATIONAL STRUCTURE
In the reporting period ending on 31 December 2023, a total of 554 employees contributed to the
core business of the parent Company M SAN Grupa and related companies in Croatia, as well as 398
employees in the region (Serbia, Bosnia and Herzegovina, Montenegro, Macedonia, Slovenia). A total of
952 employees contributed to the growth and development of our companies during the year as of 31
December 2023.
Our main goals and ambitions are:
•
to become the most successful ITCE distributor in the Adria region
•
to develop our own brand with a relevant presence on the EU market
•
to achieve market leadership in the field of e-Mobility
•
to build a logistics infrastructure in order to reach end consumers
•
lean operations
Key operating indicators of the Group
7.400+ 950+ 6200.000
PARTNERS EMPLOYEES OWN
BRANDS
PRODUCTS DELIVERED
PER MONTH
M SAN GRUPA ANNUAL REPORT 202320
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M SAN GRUPA ANNUAL REPORT 2023 21M SAN GRUPA ANNUAL REPORT 2023 21
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M SAN GRUPA ANNUAL REPORT 202322
M SAN GRUPA ANNUAL REPORT 2023
CORPORATE
Governance
The M SAN Grupa, as an entity of public interest whose corporate bonds are listed on the
Official Market of the Zagreb Stock Exchange, in accordance with the Accounting Act, Article
22, is obliged to include a statement on the application of the Corporate Governance Code in
the annual report.
The M SAN Grupa is not obliged to apply the Corporate Governance Code of the Croatian
Financial Services Supervision Agency and the Zagreb Stock Exchange d.d. (https://www.hanfa.
hr/media/4098/zse_kodeks_hr.pdf), but the Group is guided in its operations by the highest
standards of governance and responsibility in accordance with good corporate management
practices, and the standards and practices themselves are included in the Articles of
Association, which are available on the Company’s website (https://www.msan.hr/wp-content/
uploads/2024/02/2023-01-02_M-SAN-Grupa_Odluka-o-izmjeni-izjave-drustva.pdf).
The Company is also obliged to submit data on corporate governance practices to Croatian
Financial Services Supervision Agency through the Questionnaire on governance practices
for bond issuers (GIKU-UOP-OBV).
The M SAN Grupa is a signatory to the Code of Ethics in Business, initiated by the Croatian
Chamber of Commerce. The mentioned Code establishes the guidelines for the ethical
behaviour of business entities, and the signatories undertake, among other things, to respect
human rights, apply the provisions on preventing corruption, and so on.
INTERNAL CONTROLS AND RISK MANAGEMENT IN RELATION TO THE FINANCIAL REPORTING
PROCEDURE
Internal accounting controls, meaning the procedures of competent employees, ensure the
accuracy, validity, and comprehensiveness of financial records and reports, which are the basis for
the preparation of annual financial reports. This system of controls also ensures their compliance
with International Financial Reporting Standards. The Company’s accounting policies represent
the rules that the Company applies when compiling financial statements. A summary of the
most significant accounting policies is published in the Company’s financial statements.
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BODIES OF THE COMPANY
The corporate governance structure of the M SAN Grupa is based on a dualistic system,
which consists of the Supervisory Board and the Company’s Management Board, which,
together with the General Assembly, in accordance with the Statute and the Companies
Act, represent the three fundamental bodies of the Company. The Supervisory Board has
established an Audit Committee, which, when performing its tasks, assesses the quality
of the internal control and risk management system with the aim that the main risks to
which the Company is exposed (including risks related to compliance with regulations) are
appropriately identified.
DESCRIPTION OF DIVERSITY POLICY
The employment policy within the Group respects the personal integrity of each individual
by respecting the principles of diversity and equal opportunities. Diversity is one of the
characteristics of our organizational culture, which has been present since the founding of
the Company, and is manifested in the belief that differences in gender, skin colour, political
or other beliefs, national or social origin represent wealth, which has existed within M SAN
and has been transformed into success for more than 20 years.
The Group strictly prohibits and condemns any form of discrimination with the aim of
providing and ensuring a sustainable work environment without discrimination and abuse
based on gender, race, religion, ethnicity, sexual orientation or any other characteristic/status
as a basis for discrimination. The Group is committed to providing a non-discriminatory
workplace, and we are proud of the absence of reported incidents.
CORPORATE
Governance
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CORPORATE
governance
Governance within M SAN is based on the transparency and efficiency of corporate governance
based on the best international practices, ensuring the success and sustainability of the entire
Group’s activities.
M SAN operates within a two-level board structure, consisting of the Supervisory Board and the
Management Board. During 2023, the Supervisory Board consisted of five members, while the
number of Management Board members decreased from seven members at the beginning of the
year to six members at the end of the first quarter.
The Supervisory Board and the Management Board ensure that the established strategy, resources,
risk management system, internal control system and relations with stakeholders support the long-
term success and sustainable development of the entire Group. Moreover, the above elements
ensure that the strategy takes into account the potential impact on the environment and the
community, and that the policies, culture and values of M SAN promote ethical behaviour, respect
for human rights and lead to a stimulating and pleasant work environment.
The role of the Management Board in conducting business is regulated by the Companies Act,
the Statute and by-laws. The Management Board performs its function with the attention of an
orderly and conscientious economist, taking into account primarily the best interests of the Group.
When making decisions, the Management Board must not be guided by personal interests, that
is, use business opportunities for personal purposes, and it is obliged to immediately notify the
Supervisory Board of any conflict of interest.
The Assembly of the Company is the highest body, and it consists of the member of the Company
as the sole founder. The member of the Company makes the decisions he is authorized to make by
law and the Articles of Association. The Assembly decides on issues that are within the exclusive
competence of the Assembly based on the current Companies Act. If it deems that there is a need
for it, the Assembly is authorized to issue mandatory instructions to the Management Board
regarding the management of the Company’s affairs, and the Management Board is obliged to
manage the Company’s affairs in accordance with the mandatory instructions of the Assembly.
The Assembly is convened by the Company’s Management Board in cases prescribed by the
Companies Act and whenever the Company’s interests require it, but it can also be convened by
the Supervisory Board and the member of the Company. The Assembly is eligible for decision-
making if the sole member of the Company is present.
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Irena Langer Breznik has held a number of
management positions in the M SAN Grupa
for 18 years. In her roles, which include a
leadership position in the M SAN Grupa’s
procurement, in addition to responsibility
for the complete procurement process in
the Republic of Croatia and regionally, she is
responsible for obtaining new distributions,
nurturing quality relationships with principals,
organizing and implementing marketing
activities at the level of M SAN and companies
in the region; moreover, she was responsible for
the establishment of new business processes
as well as the improvement of existing ones
and worked continuously on structural
improvements of business processes with
special emphasis on regional procurement,
development and improvement of operations
in the foreign markets of Group members,
management of numerous projects with the
aim of developing and improving business
applications, electronic trade development
between business entities, inventory
management and digital transformation.
Since 2011, Mrs. Langer Breznik leads the
e-commerce development and operations
of eKupi, both in the Republic of Croatia and
regionally, and serves as a member of the M
SAN Grupa Management Board. On 1 January
2023, she assumed the position of President of
the Company’s Management Board.
IRENA LANGER BREZNIK
PRESIDENT OF THE MANAGEMENT BOARD
The M SAN Grupa’s MANAGEMENT BOARD
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M SAN GRUPA ANNUAL REPORT 2023 29
During his 20 years in the M SAN Grupa, Slaven
Stipančić focused on improving the procurement
process and expanding the distribution portfolio.
Mr. Stipančić, leading a team of successful
professionals, is responsible for and made a
great contribution to the development of M
SAN’s own VIVAX brand, thanks to which VIVAX
became a recognized brand that is sold on
almost the entire European market, as well as on
other continents. As director of the consumer
electronics segment, he works on contracting
and developing distribution cooperation with
the world’s strongest CE brands, in Croatia and
the region. At the same time, he is working
on optimizing the connection between the
sales processes of international CE brands and
the Company’s procurement processes. Since
2009, Mr. Stipančić has been a member of the
Company’s Management Board.
SLAVEN STIPANČIĆ
MEMBER OF THE MANAGEMENT BOARD
Žarko Kruljac devoted 17 years in the M SAN Grupa
to the development of the Froup’s sales force and
distribution reach. Initially, he stood out thanks to
the successes in business and the realization of
strategic goals that he achieved in management
positions in companies in the Republic of Serbia
and Bosnia and Herzegovina, and after that,
managing commercial operations in Croatia and
the region, and focused his activities on three key
aspects: continuous building and strengthening
of partnership customer networks, raising the
competences of sales operations and adapting
sales processes to market changes. He received
his doctorate in the field of economic sciences in
2020. Since 2009, Mr. Kruljac has been a member
of the Company’s Management Board.
ŽARKO KRULJAC
VICE-PRESIDENT OF THE MANAGEMENT BOARD
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The M SAN Grupa’s MANAGEMENT BOARD
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Mr. Miroslav Gabrić joined the management
of the M SAN Grupa in 2022, after more than
2 decades of experience in key management
positions of the largest distribution Groups in
Croatia and neighbouring countries, where
he worked on the organization of logistics,
including the implementation of technological
solutions for the optimization of all processes in
in the field of logistics. His arrival at the M SAN
Grupa is connected precisely with his primary
responsibility of consolidating, optimizing and
developing all processes in the field of logistics.
Since 8 March 2023, Mr. Gabrić no longer acts as a
member of the Company’s Management Board.
Strengthening sales operations and expanding
the distribution reach, in all countries of the
region, are the main subjects of Mr. Kotlarević’s
activities. In his 18 years of work in the M SAN
Grupa in the positions of sales manager, sales
director and business development director,
Mr. Kotlarević directly influenced the building
of the Company’s strong market presence and
its current recognition. Since March 2021, Mr.
Kotlarević has been a member of the Company’s
Management Board.
MIROSLAV GABRIĆ
MEMBER OF THE MANAGEMENT BOARD
GORAN KOTLAREVIĆ
MEMBER OF THE MANAGEMENT BOARD
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During almost 19 years within the M SAN Grupa,
Mr. Alen Panić held a number of functions
related to the construction and development
of the division of high technologies and project
business, including the role of executive director
of the so-called value-added distribution.
Today, the mentioned division consists of a
number of departments that are responsible for
the business of infrastructure, software, cloud
and project solutions, distributed in all the
countries of the region, distributing the world’s
largest technology principals, and represents
the regional leader in that segment of business
behind which hundreds of successfully delivered
the most complex ICT projects, continuous
growth and business expansion. Since October
2022, he has been a member of the Company’s
Management Board.
Vladimir Brkljača built his business career in the
M SAN Grupa, where he devoted himself to the
development of the VIVAX brand for the past 20
years. Along the way, he held various positions;
from product manager, head of development
and procurement VIVAX, head of the VIVAX profit
center, and for the last 5 years he held the position
of executive director of the VIVAX division, with key
responsibilities for development, procurement,
sales and building the VIVAX brand. He led the
project of moving and building a plant for the
production of VIVAX LED televisions in Croatia
and in the initial phase the development of the
MS Energy brand. He made the main contribution
to the overall development and strengthening
of the VIVAX division’s operations in all countries
of the region, a significant step forward to the
EU market, and the implementation of the VIVAX
brand strategy. Since October 2022, he has been
a member of the Company’s Management Board.
ALEN PANIĆ
MEMBER OF THE MANAGEMENT BOARD
VLADIMIR BRKLJAČA
MEMBER OF THE MANAGEMENT BOARD
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The M SAN Grupa’s SUPERVISORY BOARD
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Marko Rašić started his career in the Group in 2003 as an intern in the Finance Department and
by 2011 he had progressed to the position of head of finance. During the acquisition period of
the Group in the agricultural segment, he actively participates in takeover processes and the
subsequent financial restructuring of acquired agricultural companies. In parallel with his duties
as head of finance, since 2016 until he has held the position of Chairman of the Supervisory
Board of PP ORAHOVICA d.o.o. and President of the Supervisory Board of PPK Valpovo d.o.o.
and from 2014 to 2023 he has been a member of the Supervisory Board of the Company KING
ICT d.o.o. In the Supervisory Board of M SAN, he has held the position of Deputy Chairman of the
Supervisory Board from 2016 until 2023 when he became a member of the supervisory board.
In 2017, he was appointed director of the Company Ured za podršku d.o.o. From February 2024,
Mr. Rašić also acts as the chairman of the Supervisory Board of Agro Invest Grupa d.o.o.
MARKO RAŠIĆ
MEMBER OF THE SUPERVISORY BOARD
ŽELJKO MENALO
PRESIDENT OF THE SUPERVISORY BOARD
Željko Menalo spent most of his career in the financial industry within the Erste&Steiermarkische
Group in Croatia, where he performed various managerial tasks. He joined the SM Group* in 2019
with employment at the Company M SAN Ulaganja d.o.o., and since 2022 he has been employed
at the Company Ured za podršku d.o.o. in the position of adviser. By the decision of the Company’s
Assembly of September 2022, Željko Menalo was appointed to the position of President of the
Supervisory Board with the beginning of his term of office on 1 January 2023.
MIROSLAV HUZJAK
DEPUTY PRESIDENT OF THE SUPERVISORY BOARD
For the past 24 years, Miroslav Huzjak has been working in leading positions in the M SAN Grupa,
leading teams of professionals who have positioned the Company as the most important ICT
and CE distributor in the Adria region. He worked in various jobs in the Company, and held
a managerial position in the commercial department, which in addition to the responsibility
for the organization of the commercial department, and its successful operation and the
positioning of M SAN as a market leader, included numerous other responsibilities. Mr. Huzjak
was responsible for conducting key negotiations for concluding a distribution contract with
the largest globally significant principals, thanks to which M SAN became an authorized
distributor of numerous world-famous brands, both in the territory of the Republic of Croatia
and regionally. As of 1 January 2023, Mr. Huzjak holds the position of Deputy Chairman of the
Supervisory Board of the M SAN Grupa.
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M SAN GRUPA ANNUAL REPORT 2023 33
Stipo Matić founded M SAN in 1995 and is its sole founder and member. In the period until
2009, Stipo Matić held the position of director of M SAN GRUPA, and then took over the
position of Chairman of the Supervisory Board of the Company. Moreover, Stipo Matić is the
director of M SAN Logistika d.o.o. and M SAN EKO d.o.o., member of the Management Board
of eKupi d.o.o., as well as the Chairman of the Supervisory Board of KING ICT d.o.o. Today, the
portfolio of companies owned by him includes KING ICT d.o.o., eKupi d.o.o., Ured za podršku
d.o.o., CORVUS PAY d.o.o., Agro Invest Grupa d.o.o., and others.
STIPO MATIĆ
MEMBER OF THE SUPERVISORY BOARD
Snježana Matić has been involved in the business of M SAN since the very foundation of the
Company. In the beginning, she worked on sales tasks, and then on procurement tasks with
a special focus on building long-term sustainable business relationships with suppliers. In
response to the growth of SAN’s business activities, she took over the coordination of
activities in accounting and finance, and in 2004 devoted herself to the development of
system integration business, where she still operates in the field of controlling. She has
been a member of the Supervisory Board of M SAN from 2004 until April 7, 2024.
SNJEŽANA MATIĆ
MEMBER OF THE SUPERVISORY BOARD
In addition to the Supervisory Board and the Management Board, the Audit Committee, consisting of three
members Branislav Vrtačnik, Kristina Alebić and Branka Gerić, has the role of providing support to the
Supervisory Board in its performance his tasks and the implementation of other activities, in accordance
with applicable laws and others provisions. The audit committee is an advisory committee of the Supervisory
Board without executive powers, that is, it acts as a specialized subcommittee of the Supervisory Board,
and its powers derive from powers of the Supervisory Board.
*SM group: A group consisting of companies in which the sole member of the M SAN Grupa directly or indirectly exercises control
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OPERATING
Business
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OPERATING
Business
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ITCE DIVISION
The ITCE division operates in the territories of the
Republic of Croatia, Serbia, Bosnia and Herzegovina,
North Macedonia, Montenegro and Slovenia.
The division includes the categories of 19 strategic
product Groups that refer to the ‘A’ brands of world
manufacturers in the total product portfolio of
the M SAN Grupa. The ITCE division is divided into
four verticals across all countries where it operates,
namely the IT vertical, Notebooks/Computers
vertical, Consumer Electronics - Appliances vertical,
and Sales Division Vertical. Each of the verticals
specializes in the procurement and sale of a certain
part of the range.
The IT vertical includes strategic groups of products
that are primarily components of the desktop
computer and accessories that are closely related to
the computer itself. The most important strategic
groups in the IT vertical are desktop computers,
desktop computer components, monitors,
consumables and printers, peripherals, network
equipment and the gaming range.
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ITCE DIVISION
In the IT vertical, there is an own brand of desktop
computers called MSGW, which is manufactured in an
automated plant for the production of IT equipment,
and the private MS brand, which encompasses
computer peripherals such as headphones, speakers,
power supplies, keyboards and mice, and housings
and cables.
The CE-A vertical includes strategic groups of
white goods, TVs, air conditioners, drones, small
household appliances, new technologies, mobile
phones and brown goods.
The NOT/COMP vertical includes strategic groups of
laptops, gaming laptops, desktop computers and
monitors related to ‘A’ brands of manufacturers.
The Sales Division vertical is primarily in charge
of distributing and expanding the strategic
manufacturer groups located in the ITCE Division
portfolio across all divisional sales channels.
In 2023, the ITCE Division recorded total revenues
of EUR 206.1 million, representing a 1.7% decrease
in the achieved result compared to the previous
year. The highest growth compared to the previous
year was achieved in the CE vertical, 9.2%, the IT
vertical saw a 2.1% growth, while the NOT/COMP
vertical recorded a 9.8% decrease in revenue.
The CE vertical saw an increase in the number of
partners in distribution and increased sales of small
household appliances, white goods and TVs, along
with successful team consolidation in the markets
of Serbia, Montenegro, and Macedonia. Meanwhile,
the IT vertical saw a slight growth in most strategic
groups, particularly in components. At the same
time, the NOT/COMP vertical saw a decline in
revenue primarily due to a decrease in investments
in the private and government sectors.
Geographically, compared to the previous year,
sales growth was achieved in the markets of Croatia
by 6.3%, Macedonia by 18.3%, and Montenegro by
15.0%, while other markets experienced a decline
compared to the previous year. Looking at the
structure of total revenues of the ITCE division, the
market of Croatia participates with 48.0%, followed
by the market of Serbia with 27.1%, the market of
Bosnia and Herzegovina with 9.5%, Slovenia with
6.0%, Macedonia with 5.0% and Montenegro
with 4.4%. In the sales and distribution part of the
business and sales channels, the total number of
customers grew by 2.4%.
The main factors that influenced the sales results
of the division in 2023 were further retail price
growth, increased cost of living, as well as an
increased quantity of goods on the market. The
increase in prices led to reduced demand among
end-users, especially in the segment of laptops
and certain IT products in the first part of the
year. At the same time, investments in equipment
renewal decreased in both the private sector and
partially in the government sector.
Consoli
dation was carried out within the division
across all countries, and a strategic division by
verticals was implemented, resulting in more
efficient management of product ranges and sales
channels.
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Manufacture and distribution of own brand
VIVAX DIVISION
Simply Quality
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VIVAX
The Vivax brand is a domestic product that has
been on the Croatian market since 2004, and today
it offers more than 300 different products in its
range. The VIVAX division includes the operations
of its own VIVAX brand in the consumer electronics
segment. The assortment consists of products
classified into five primary strategic Groups: TV and
audio, Air conditioning, Small home appliances,
White goods, and Smart devices.
In 2023, investments in the VIVAX brand marketing
continued, in line with the established brand
strategy. In 2023, the export focus of the VIVAX
division was directed towards developing new
markets, specifically Italy, France, and Spain, where
there is potential for future business growth,
alongside continued growth and development in
existing markets. Additionally, VIVAX devices were
presented at the largest consumer electronics trade
show, IFA Berlin, in September 2023, and the IFEMA
Air Conditioning and Ventilation Fair in Madrid.
In the second half of 2023, a new business segment
– commercial air conditioning – was presented on
the Croatian market, which, in addition to semi-
commercial and home air conditioning, represents
an upgrade of business activities within the
strategic group Air Conditioning.
Throughout 2023, the Group invested in expanding
and building new teams, as well as enhancing the
competencies of existing teams, which are the
main prerequisites for ensuring the viability of the
VIVAX division.
Financially speaking, after an 8.1% drop in sales in
the first half of 2023 compared to the same period
of the previous year, the VIVAX division generated
revenues of EUR 86.5 million, which is a 4.6%
increase compared to 2022.
Despite the negative impacts (the decline in
average product prices and adverse weather
conditions in May and June that affected air
conditioner sales) throughout the year, and
especially evident in the first half of 2023, various
activities were carried out and funds were
invested to raise efficiency and address excessive
inventory, leading to significant progress in the
second half of 2023.
Looking at strategic groups, a significant step
forward was made by the Air Conditioners group
with an 8.4% growth on an annual level, and the
White Goods group with a 38.3% growth. Within
the strategic group of White Goods, the main
drivers of revenue growth were the expansion
and positioning of the product range in the
retail establishments of our partners, as well as
strengthening our position in export markets. The
strategic group of TV devices recorded a 13.2%
annual decline, while small household appliances
simultaneously saw a 10.8% decline.
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GREEN DIV I SION
The Green Division was formed in response
to growing environmental trends and lifestyle
changes, taking into account the benefits of
green technologies in everyday life. The use of
solar systems in electricity production and high-
efficiency LED lighting significantly contributes to
energy savings, and the use of e-bikes increases
mobility over longer distances, contributing
to a change in the paradigm of business and
recreational mobility.
The division is organized into three key verticals:
distributing solar power plant equipment,
manufacturing high-performance professional
LED lighting, and manufacturing electric bicycles,
scooters and motorcycles. The business strategy
is based on cooperation with partners who create
added value to the operations of the Green
Division, resulting in a 29.5% revenue growth in
2023 compared to 2022.
The MS LUX brand was protected in the EU and the
countries in the region, thus starting production
under that name. During 2023, the value of the MS
LUX brand was recognized on all major projects, out
of which we highlight the following cities: Bjelovar,
Velika Gorica, Koprivnica and Bosanska Gradiška. A
large number of smaller municipalities were also
illuminated using the MS LUX range of professional
LED lighting, and we particularly emphasize
the project in the municipality of Plitvice Lakes.
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GREEN DIV I SION
increased demand for solar solutions.
The e-mobility business area was characterized
by a decline in demand for electric bicycles in the
European market. Nevertheless, and following the
MS Energy brand development strategy, M SAN
GRUPA exhibited its products at the EuroBike fair in
Frankfurt, where it further expanded cooperation
with a number of partners in the EU. Today, the MS
Energy brand is present in the markets of Ireland,
Italy, Hungary, the Czech Republic, Slovakia,
Romania and Slovenia.
The production of e-bicycles in the factory in Rugvica
was professionalized, attracting recognition from
reputable e-bicycle manufacturers who offered
cooperation in the field of OEM production. The
first OEM e-bicycles rolled out in the second part of
the year, aiding us significantly in the expansion of
production capacity for the e-bicycle production
line. Significant sales of scooters were achieved
in the markets of Croatia and the Czech Republic,
where the MS Energy brand in the scooters
product group is at the very top of suppliers. By
increasing distribution, the regional presence of
the MS Energy brand was also strengthened in all
markets where subsidiaries operate.
Compared to the previous year, the revenue
structure by strategic groups differs in several
aspects. With a good result of the Enterprise
Division, the share of server sales in strategic
groups increased to 9% of operating revenues,
and sales from the Software strategic group
increased to 7% of operating revenues.
The quality of brand development has also come
to the fore in sports facilities in the city of Zagreb –
Mladost, Cibona and Dom Sportova – where there
are special requirements for LED lighting application,
considering the needs for sporting events.
We are particularly proud of the acquisition of
DATA LINK from Bjelovar into our business family.
DATA LINK consists of a professional team that has
developed highly efficient professional LED lighting
for special purposes, which has been recognized
by specialized customers and expands the reach of
the MS LUX brand beyond the borders of Europe.
The focus on the production and implementation
of LED lighting projects in this category increased
revenue by 96.6% compared to 2022.
The ‘Solar’ business area grew by 72.4% in 2023,
thanks to a significant expansion of the partner
network, as well as connecting with leading
manufacturers in the market such as Huawei,
Sungrow, SMA, Trina Solar, Longi, Wallbox and
Mounting Systems. Some of the most important
projects in Croatia, such as the Podravka solar
power plant, were made with equipment from the
distribution of M SAN GRUPA’s Green Division.
During 2023, the team was strengthened in
the subsidiaries of M SAN GRUPA, extending
distribution to partners in the region. The period
was characterized by a significant drop in the price
of panels on the world market and an increase
in the price of electricity, which contributed to
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Value added IT distribution
ENTERPRISE
a Value Added Distribution
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ENTERPRISE
The Enterprise division is a Value Added Distribution (VAD) organized in several units – the Infrastructure
department, the Software and Cloud department, the Special Projects, technical support and marketing
department, and the Enterprise Sales department, in order to provide competitive goods and services
to business ICT partners.
It operates as part of the M SAN Grupa, in Croatia, Serbia, Bosnia and Herzegovina, Slovenia, North
Macedonia and Montenegro.
•
working with a more demanding product portfolio – servers, data storage, networks, software,
solutions, video surveillance, industrial specialized products, cloud computing, high-tech services.
•
working with more demanding customers - system integrators (SI), software manufacturers (ISV),
service providers (MSP) - which requires a higher level of knowledge and complex skills, as well as
professional specialization and certification for employees.
•
working with more demanding suppliers – complex and dynamic technological, technical and
operational processes, and enormous breadth and depth of technologies, Groups, subgroups and
specialization of products.
•
Partners, and indirectly end users, are not only offered a product, the optimal solution is also
designed, suggested, upgraded and maintained, which gives a high value to the offer, especially
for smaller and medium-sized customers who cannot afford to hire expensive professionals and
monitor the dynamics of technology evolution, certification and other regulations.
•
The M SAN Grupa recognized the value of such an approach about 15 years ago, invested in an
independent, specialized division on a regional level, and, in the sales channel today, is the leading
so-called Value Add distributor in Croatia and the region.
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In addition to direct sales, the Enterprise division also ensures the coordination of other sectors and
departments in the Company when their products (e.g. laptops, specialized products...) are offered as part
of tenders and more complex projects. It combines all the necessary parts of the offer in one place and
offers the best solution to the partner, thus increasing his competitiveness and profitability.
As part of its offer, it has several dozen global brands, including;
Throughout 2023, within the broader global economic and technological framework, the continuation of
challenges stemming from the onset of the COVID crisis was felt, along with disruptions in supply chains,
wars, inflationary pressures, price fluctuations and other direct or indirect instabilities.
ENTERPRISE
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M SAN GRUPA ANNUAL REPORT 2023 45
Geographically, the Croatian market achieved a 4.7% revenue growth, Serbia a 31.6% revenue decline,
B&H a 12.8% revenue decline, North Macedonia a 4.4% revenue growth, Montenegro a 32.5% revenue
decline, while the Slovenian market saw a 387.4% revenue growth as a result of the acquisition of Alterna
in November 2022.
Despite the challenges, the Enterprise segment maintained its market position and, in all important
segments, generally increased its market shares. Total consolidated revenues amounted to 98.9 million
euros, representing a 24.8% growth. The Infrastructure Department recorded a 10% revenue decline,
primarily due to a decrease in revenue in Serbia, the Software Department achieved a 18.0% revenue
growth, and the Cloud Business Department achieved a 35.7% revenue growth.
Overall, the Enterprise segment consolidated its positions in key technologies and personnel infrastructure,
and invested great efforts in new organizational and technological competencies to create maximum
resilience and the preconditions for new developments in 2024.
ENTERPRISE
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M SAN GRUPA ANNUAL REPORT 2023
During 2023, the M SAN GRUPA achieved
operating revenue of EUR 471.7 million,
representing an increase of 9.1% compared
to the previous year. Despite the challenging
environment, all strategic divisions except
for the Other division experienced growth.
Perceived absolutely, the biggest growth
was achieved by the Enterprise division,
which, during 2023, had an increase in
sales in the amount of EUR 19.6 million
(24.8%). Primarily due to increased sales
of devices and services from the Software
strategic group. Relative to its size, the
Green division experienced the highest
growth (30.1%), thanks to increased sales of
products from the strategic group of solar
power plants. The VIVAX division achieved
sales growth of EUR 3.8 million (4.6%), driven
by increased sales of air conditioning units
and appliances from the strategic group of
white goods products.
FINANCIAL OPERATIONS OF THE
Group
M SAN GRUPA ANNUAL REPORT 202346
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M SAN GRUPA ANNUAL REPORT 2023 47
The ITCE division achieved sales growth of EUR 9.5 million (4.8%).
This growth was attributed to increased sales in the strategic
component group, which includes all computer components. In
addition to components, sales growth was also achieved in the
strategic group of small household appliances.
Similar to last year, sales of own brands account for
23.8% of total sales, while sales of partner brands make
up 76.2% of total sales.
Structurally, the increase in sales of products from the
Enterprise division and the decrease in sales of products
from the Other division led to a marginal change in the
revenue structure by divisions, as illustrated in graph 2.
Graph 1. Share of sales of own and
partner brands
Own brands
24%
Partner brands
76%
Division (Name) 2022 2023 Difference %Difference
ITCE 196,587 € 206,097 € 9,510 € 4.8%
Enterprise 79,274 € 98,906 € 19,632 € 24.8%
VIVAX 82,723 € 86,537 € 3,814 € 4.6%
Green 22,428 € 29,173 € 6,745 € 30.1%
Other 51,257 € 50,959 € 298 € (0.6%)
Total Result
432,269 € 471,672 € 39,403 € 9.1%
IN TEUR
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2022
45%
44%
18%
21%
19%
18%
5%
6%
12%
11%
2023
FINANCIAL OPERATIONS OF THE
Group
TABLE 1 Revenue by division
REVENUE BY DIVISION IN 2022 AND 2023
Graph 2: Revenue Structure by Divisions
M SAN GRUPA ANNUAL REPORT 2023 47
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M SAN GRUPA ANNUAL REPORT 202348
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SALES REVENUE BY STRATEGIC GROUPS IN 2023
Compared to the previous year,
the revenue structure by strategic
groups differs in several aspects. Due
to the Enterprise division’s strong
performance, the share of server sales in
the strategic groups increased to 9% of
total business revenue, and sales from
the Software strategic group increased
to 7% of total business revenue.
Due to increased sales, the white
goods strategic group entered the top
10 strategic groups by revenue in 2023.
36% Other
4% Desktop
computers
4% Gaming
4% White goods
Graph 3: Sales Revenue by Strategic Groups in 2023
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M SAN GRUPA ANNUAL REPORT 2023 49
7% Software
12% Notebook
11% Air conditioning
9% Servers
8% TV sets
5% Supplies
Graph 3: Sales Revenue by Strategic Groups in 2023
M SAN GRUPA ANNUAL REPORT 2023 49
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MARKET SHARE IN SALES REVENUE BY BRANDS
IN 2023
Highly segmented sales by brands reduce
the business risk of relying on one or a
few suppliers. The largest share of sales
revenue in 2023 is attributed to the own
brand VIVAX, which accounted for 18% of
revenue last year.
34% Other
6% IBM
6% HP Enterprise
2% ASUS
2% Acer
3% Microsoft
Graph 4: Market Share in Sales Revenue by Brands in 2023
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M SAN GRUPA ANNUAL REPORT 2023 51
18% Vivax
12% HP Inc
9% Lenovo
8% Samsung
Graph 4: Market Share in Sales Revenue by Brands in 2023
M SAN GRUPA ANNUAL REPORT 2023 51
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SHARES OF SALES
BY MARKET IN 2022
Geographically, 43% of the Group’s revenue comes from
sales in Croatia, 17% from Serbia, 9% from Slovenia, 8% from
Bosnia and Herzegovina, 5% from Macedonia, and 4% from
Montenegro, together representing 86% of total revenue.
The remaining 14% of revenue comes from exports, i.e., from
countries where the Group did not have affiliated companies
during 2023.
*Since November 2022, the Group owns the company
Alterna Distribucija. For this reason, Slovenia is not
included among the countries of the domestic market.
Graph 5: Market Share in Sales Revenue by Countries in 2023
21% Air conditioning
19% Components
15%
TV sets
9%
White goods
Monitors
6%
Other 30%
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M SAN GRUPA ANNUAL REPORT 2023 53
1% Germany
7% Other
2% Poland
9% Slovenia
5% Montenegro
18% Serbia
9% Bosnia and Herzegovina
North Macedonia
5%
44%
Croatia
21% Air conditioning
M SAN GRUPA ANNUAL REPORT 2023 53
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Table 2
Profit and Loss Statement for the Year 2023
Table 3
Financial Indicators for the Year 2023
FINANCIAL INDICATORS
(In Thousands of EUR) 2022 2023 % Difference
Business revenue* 432,269 471,672 9.1%
EBITDA* 10,505 10,992 4.6%
EBIT* 6,830 8,254 20.8%
Net income* 1,682 4,611 174.2%
(In Thousands of EUR) December 31 2022 December 31 2023
Net debt 32,841 22,333
Total assets 166,133 187, 2 76
Total equity 40,622 45,256
Current ratio 1.4 1.3
Net working capital (days) 44.2 32.0
Equity ratio 24.5% 24.2%
Net debt/EBITDA adjusted 3.1 2.0
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M SAN GRUPA ANNUAL REPORT 2023 55
Business income, EBITDA and EBITDA margin
trend over 5 year period
The above-mentioned indicators are derived from (or based on) financial reports prepared in
accordance with the relevant framework for financial reporting and have been obtained by adding
or subtracting amounts from numerical values presented in financial reports, i.e., by placing
numerical values in ratios.
The operating revenue of the Group increased by 9.1%, compared to the previous year, and
amounted to EUR 417.7 million. The growth in operating revenue was achieved thanks to positive
market trends, meaning an increase in sales income.
The operating expenditure (without depreciation and amortization) also increased, and in 2023
they amount to EUR 461.0 million. The largest share in operating expenditure is the cost of goods
sold, which increased by 9.4% in 2023. In addition to the cost of goods sold, personnel costs have
also increased. Due to weakening inflationary pressures, the costs of raw materials and materials
have decreased by 9.1%.
*In its Annual Report, the Group used financial measures of historic financial performance, financial
position, or cash flows that were not defined or determined within the relevant financial reporting
framework.
Graph 6 Movement of Business Revenues, Adjusted EBITDA, and Adjusted EBITDA Margin 2018-2023
500
450
400
350
300
250
200
150
100
0
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.5%
0%
2018 2019 2020 2021 2022 2023
3.17%
2.36%
9
8
9 11 11 11
Business Revenenua EBITDA EBITDA margin
2.43%
2.43%
2.50%
3.19%
299 326 352 360 432 472
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In 2023, the Group’s EBITDA amounts to EUR 11.0 million (2022 EUR 10.5 million), which is an
increase of 4.6% compared to the previous year. After the challenging year of 2022, during
which we witnessed various changes in the market and the environment, there was a recovery
in business operations and growth in operational performance indicators in 2023. The operating
profit amounted to EUR 8.3 million, representing an increase of 20.8% compared to the year 2022.
Since January 1, 2023, the official currency of the Republic of Croatia has been the euro, which
has reduced the volatility of financial revenues and expenses. The Group’s net financial expense
amounted to EUR 3.0 million. The Group ended the year with a net result after tax of EUR 4.6
million, representing an increase of 174.2%.
TABLE 4
Operating expenses
(In Thousands of EUR) 2022 2023 % Change
Cost of goods sold 3 67,987 402,694 9.4%
Cost of raw material and
supplies
9,634 8,755 (9.1%)
Staff costs 17, 526 20,556
17. 3%
Cost of services 21,535 23,238
7.9%
Other expenses 6,060 5,729
(5.5%)
Table 4 Operating costs in 2023
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M SAN GRUPA ANNUAL REPORT 2023 57
As of December 31, 2023, the total assets of the Group increased by 12.7% to EUR 187.3 million,
mainly due to the growth of current assets by 7.5% (excluding cash and cash equivalents) and an
increase in cash and cash equivalents. Current assets increased primarily due to a 34.1% growth in
accounts receivable from customers, while the Group’s inventories decreased by 20.0%.
On the liabilities side, improved business performance in 2023 led to an increase in the value of
the company’s equity compared to the previous year. Short-term liabilities of the Group increased
by 18.7% due to an increase in liabilities to suppliers, while long-term liabilities decreased by 7.2%.
Total long-term liabilities of the Group decreased compared to the end of the previous year in
accordance with depreciation plans.
The Group’s financial debt
decreased by 2.2% in 2023.
Coupled with the increase in cash
and cash equivalents, this led to
a reduction in net financial debt
by 32.0%. The structure of total
liabilities is provided in Graph 8
and Graph 9.
ASSETS AND LIABILITIES
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
13%
13%
18%
24%
69%
63%
Structure of Assets and Sources of Assets of the Group in 2023
Structure of Liabilities
Cash and cash equivalents
Current liabilities
Non-current assets
Equity
Current assets
Non-current liabilities
Long-term bond liabilities
Short-term bank borrowings
and loans
Long-term borrowings
Current portion of long-term
bond liabilities
40%
47%
6%
7%
Graph 8 Structure of Financial Liabilities of the Group in 2023
Graph 7 Structure of Assets and Sources of Assets of the Group in 2023
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Structure of Liabilities
The Group’s financial debt decreased by 2.2% in 2023. Coupled with the increase in cash and cash
equivalents, this led to a reduction in net financial debt by 32.0%. The structure of total liabilities
is provided in Graph 8 and Graph 9.
32,840
22,332
9,490
(1,019)
GRAPH 9 Movement of Financial Debt during 2023
Net financial debt 2022 Cash increase Debt reduction Net financial debt 2023
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M SAN GRUPA ANNUAL REPORT 2023 59
TABLE 5
Alternative performance measures
Alternative
performance
measure
Calculation
Business revenue
Sales revenues plus other income
Business
expenditures
Subtotal for items cost of goods sold, (decrease) / increase of the value of work in progress
stocks and finished products, raw material and material costs, cost of services, personnel
costs, depreciation and amortisation, other costs, value adjustments, risk provisions, and
other business costs
EBITDA
Total operating income less total operating costs increased by depreciation and
amortization and impairment
EBITDA margin
EBITDA divided by total operating income
EBIT
Operating profit or total operating income less total operating costs
EBIT margin
EBIT divided by total operating income
Profit for the year
Profit for the year is the sum of profit before tax decreased by income tax
Net debt
Non-current and current liabilities to banks and other financial institutions increased for
long-term and short-term liabilities for securities and decreased for the balance of cash
and cash equivalents
Net debt / EBITDA
It means long-term and current liabilities towards banks and other financial institutions
increased for bond liabilities minus cash and cash equivalents.
Net profit margin
Net profit margin is net income as a percentage of operating income
Current ratio
Value of Current assets divided by current liabilities
The above-mentioned measures are not financial performance measures in accordance with the
International Financial Reporting Standards and should not be considered as alternatives to other
operational impact indicators, cash flows, or any other performance measures derived in accordance
with the abovementioned standards.
The above-mentioned measures have been presented in order to provide useful information on the
financial state and business results of the Group, namely, for the following reasons:
• they are measures that the Group uses to assess operational performance.
• they are measures that the managing bodies of the Group use to make everyday business decisions.
Table 5. Alternative performance measure
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OPERATING
Risks
In its operations, the M SAN Grupa is exposed to
numerous internal and external influences that can
cause the emergence of risks that affect the realization
of the Company’s plans and, indirectly, the financial
condition, meaning, the operating result.
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M SAN GRUPA ANNUAL REPORT 2023 61
OPERATING
Risks
This Group of risks includes political, macroeconomic, risks of natural disasters and infectious diseases in
all countries where the Group operates. Although the consequences of exposure to these risks can have a
significant impact on the Group’s operations, the Group does not have the ability to influence exogenous
factors that manifest themselves through the mentioned risks.
OPERATING ENVIRONMENT RISK
POLITICAL RISK
The Group operates in the territory of the countries of the Adria region, and exposure to political risk can be
manifested in the deterioration of political and economic relations and cooperation between the countries
of the Adria region, which can affect the Group’s business processes and operations. At the global level,
there are also certain risks that may ultimately result in a shortage of goods on the market. A worsening
of relations between the United States of America and the People’s Republic of China is also possible, as
well as a cooling of relations between the EU and the People’s Republic of China. Given that the majority of
goods from the Group’s portfolio are produced in the People’s Republic of China, the imposition of certain
additional customs barriers may affect the availability of goods, and thus the Group’s business results. Also,
compliance with different rules and regulations in different jurisdictions can cause significant costs.
MACROECONOMIC RISK
Through its international operations, the Group is under the influence of macroeconomic risks that appear
both in individual countries and at the global level. Most of the M SAN Grupa products from the IT and CE
portfolio belong to the Group of cyclical consumer goods, which moderately depend on the movement of
GDP components, the most significant of which is the influence of personal consumption as a function of
unemployment, disposable personal income and inflation. In addition to personal consumption, it is also
necessary to highlight investments, which are a strong driver of demand for the Group’s products through
the processes of digitization of economic entities.
RISK OF NATURAL DISASTERS
The risk of natural disasters in the form of floods, extreme droughts, earthquakes and others arises from
events that can unexpectedly, in a short time, cause significant material damage to property, or cause
negative impacts on the Group’s overall operations. Remediation of the consequences of such disasters can
result in significant material allocations, as well as a longer period of business interruption or limited scope
of business under the given conditions. The M SAN Grupa reduces exposure to the consequences of this
risk by using asset insurance instruments.
RISK OF INFECTIOUS DISEASES
The Group is exposed to the risk of an infectious disease pandemic, which can affect a larger geographic
area or the entire world. In addition to the threat to the health and safety of employees, the risk arising from
the pandemic can lead to a shortage of goods, the temporary closure of one part of the business or a partial
interruption of the supply chain and the closure of business in all markets for an indefinite period. During
the COVID-19 pandemic, the Group proactively implemented health protection and infection prevention
measures for employees, but also paid special attention to the procurement of supplies in the circumstances
of interrupted supply chains in order to provide continuity of deliveries to its customers.
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INDUSTRY AND COMPETITION RISK
INDUSTRY RISK
The specificity of distribution in the IT equipment industry and in the distribution of consumer electronics
is the absence of long-term and exclusive contracts with principals. Mentioned industry is relatively young
and these characteristics are the result of the need to be able to respond quickly to the growing needs of
the market for IT equipment in conditions where no distribution network ready to respond to all logistical
and financial requirements existed.
Thus, not only in the Republic of Croatia but also in the EU and the world, multi-distribution appeared,
where each large principal has two or more distributors in the same market. This increases competitiveness,
reduces margins and forces distributors to be more efficient.
Likewise, distribution agreements are most often signed for the duration of one year and are usually
automatically renewed at the end of each period, but still provide the opportunity to the principal to not
extend the agreement without major financial or other obstacles, for example in case that the distributor
has business problems and significantly loses market share. There is also a risk in market consolidation
where the principal may decide to reduce the number of distributors with whom it operates in a certain
market. The group is diversifying its principals, in order to be able to replace possible lost income due to
non-renewal of the contract by an individual principal, with income from business with other principals.
COMPETITION RISK
In all markets where the Group operates, there is competition in the distribution of products with
considering the policy of the principal and the lack of exclusivity in the field of IT equipment distribution
and consumer electronics. In most product categories that the Group distributes, the right to sell the same
or similar products has at least two other distributors and in some cases three or four distributors. With the
entry into the EU, the market of the Republic of Croatia opened up to the free market import of goods from
EU member countries, which enables other distributors to market goods on Croatian market. The described
opening of the market
led to the entry of a certain number of pan-European companies’ distributors to the market of the Republic
of Croatia, either by acquiring a local distributor or by opening local offices.
The market in which the Group operates is fragmented by a large number of partners engaged in sales of IT
equipment and consumer electronics or system integration. By concentration in the retail market, the share
of larger partners increases at the expense of smaller ones, and the probability increases direct cooperation
of the principal with large partners, which potentially reduces the market of the Group and can lead to a
drop-in income. Although in the previous examples the presence of a new distributor on the market did
not have a significant impact on the Group’s operations, in the event that the Group in the long term will
not be able to adequately compete with competitors, this may result in weakening competitive position of
the Group and negatively affect its operations.
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M SAN GRUPA ANNUAL REPORT 2023 63
BUSINESS RISK
RISK ASSOCIATED WITH THE EMERGENCE OF NEW DISRUPTIVE TECHNOLOGIES
There is a risk of the emergence of new technologies that will change existing business models and market
needs in a very short time, but it is not possible to predict them precisely.
For example, virtualization has significantly reduced the need for the number of servers that were previously
significant distribution segment. Due to such technological changes, IT equipment distributors and
consumer electronics may be faced with the need to change business dynamics. Group therefore invests
resources in knowledge and monitoring of new technologies in order to be able to react promptly and offer
solutions in accordance with new user requirements. At the same time, trends in the market, specifically
digitization, significantly increases the need for IT equipment and services and thus, despite solutions like
virtualization, it increases the total need and capacity of the market.
RISK ASSOCIATED WITH INTELLECTUAL PROPERTY
The Group has its own brands Vivax, MS, MSGW, MS Energy, MS Lux in its portfolio, which represent its
intellectual property. The Group continuously invests considerable financial resources in their development,
promotion and protection of intellectual property rights, and today they make up a significant part of the
overall business with a further growth trend. Own brand products are sold on the market of the Republic of
Croatia and the region (Republic of Serbia, Bosnia and Herzegovina, Republic of North Macedonia, Republic
of Montenegro) as well as on the EU and world markets, meaning on the market of 39 different countries
in total. The Group continuously and up-to-date protects the names and signs of its brands and internet
domains based on the national protection system (through the State Institute for Intellectual Property), as
well as at the international level (through the World Intellectual Property Organization) and monitors the
protection status of these rights, but there is always a risk that someone on some market will try to abuse
or violate the Publisher’s protected intellectual property. This would cause ambiguities among consumers,
and there is a possibility that by compromising the brand in this way, demand would fall, and thus the
Publisher’s operating results related to the sale of its own brand products.
RISK ASSOCIATED WITH IT SYSTEMS
The Group relies on efficient IT systems in its operations. A large amount of data about, for example,
customers, products, processes or employees would not be possible to process in real time without complex
IT systems and solutions that enable daily analyses. The greater the amount of data that is processed, the
more complex and vulnerable the system is.
Since distribution is an intensive activity with a large number of daily transactions, any downtime or inability
to use IT systems would cause damage to the business. The Group continuously invests in the development
of IT systems and their security. Tools and solutions are used to protect data from unauthorized access and
backup copies are made in different locations. However, the possibility of a system crash for various reasons
(major hacker attack, long-term power outage, and so on) cannot be ruled out, where just restoring all
systems to full functionality would take a certain amount of time and lead to harmful consequences.
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FINANCIAL RISK
This Group of risks includes market, credit and liquidity risk. Market risk implies exposure to changes in the
fair value of products or financial instruments depending on the movement of prices, interest rates and
exchange rates. Credit risk arises from the existing and future potential inability of business partners to
meet their obligations towards individual companies of the Group. Liquidity implies maintaining a sufficient
amount of cash and working capital and securing adequate financial resources in the form of credit lines.
FOREIGN EXCHANGE RISK
Considering the activity of the Group’s companies on the international and regional market, the Group’s
companies are exposed to foreign exchange risk arising from changes in foreign currency exchange rates
mainly related to the US dollar (USD), Serbian dinar (RSD) and Macedonian denar (MKD). As the companies
of the Group have currency exposure to suppliers for importing goods and to customers for sold goods
in export, the impact of this risk is mitigated by the Group in a natural way, meaning in the way that all
goods imported in a foreign currency, if sold abroad, are calculated in the same currency in which it is paid
upon import, thus ensuring natural currency protection. In addition, the Group monitors exchange rate
movements and occasionally uses FX forward contracts. The bulk of the Group’s credit liability exposure
consists of liabilities in local currency and a smaller part in BAM and MKD.
INTEREST RATE RISK
Interest rate risk arises from the obligations of Group companies to pay interest on short-term and long-term
loans that the Group has and may have in the future, as well as issued bonds. Loans granted at variable rates
expose the Group’s financial result to cash flow risk. Significant changes in interest rates could potentially
have a negative impact on the Group’s financial results. The most significant part of the Group’s credit
obligations is contracted with a fixed interest rate.
The Group continuously monitors changes in interest rates by simulating situations that point to a significant
increase in variable interest rates and takes into account refinancing options as well as alternative financing.
Based on these situations, the Group calculates the impact of interest rate changes on the profit and loss
account.
CREDIT RISK
The risk of debt collection arises from the existing and future potential insolvency of business partners and
their inability to meet their obligations towards individual companies of the Group. The Group’s assets that
bear the risk of collection of receivables consist mainly of receivables from customers and other receivables.
The Group implements an active sales policy, as part of which it monitors business relations with all
customers and within the framework of predetermined credit limits and defined policies, whereby the
level of approved credit limits of insurance companies that insure claims plays an important role. Also, the
Group defines a maximum credit limit and payment terms for customers with a suitable credit history.
Accordingly, strict measures are implemented to control the collection and delivery of goods, as well as
the acquisition of debtor’s security instruments (bank guarantees, bills of exchange and promissory notes,
registration of liens and occasional rights of return of goods).
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M SAN GRUPA ANNUAL REPORT 2023 65
REGULATORY RISK
LIQUIDITY RISK
Liquidity implies maintaining a sufficient amount of cash and
working capital and securing adequate financial resources in the
form of credit lines. Liquidity risk refers to the fact that the Group
will not be able to fulfil its due financial obligations in a timely
manner due to a lack of own funds, a lack of available funds on the
cash market or the inability to lend from financial institutions.
Liquidity risk occurs as a result of other risk factors such as credit
risk or refinancing risk and many others. The occurrence of the
Group’s liquidity risk could lead to a financial loss for the Group if
the Group were to sell certain assets below their market price in
order to compensate for the lack of liquid assets.
The Group operates in the field of distribution of consumer
electronics and IT equipment of the world’s leading brands, as well
as production and distribution of its own brands in the domain of
consumer electronics and IT equipment. The Group’s operations
in relation to products of its own brands are subject to applicable
national and EU regulations in the field of electrical and electronic
safety, energy efficiency, and so on, in such a way that the products
in question must have appropriate certificates and comply with
applicable EU standards. The Group continuously monitors and
adapts to changes in regulations, and any failure to do so could
result in various sanctions.
Furthermore, the Group may be exposed to higher costs that may
arise as a result of eliminating potential violations or adapting to
changes in existing regulations, meaning introducing additional
regulations regarding the field of consumer electronics, which
could affect business, financial position and business results.
65
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EXPECTATIONS OF THE MANAGEMENT
FOR THE YEAR 2024
Looking towards the future, we remain focused on maintaining this momentum and seizing opportunities
for further growth and expansion. Through continuous changes, planned organizational activities, a clear
focus on further strengthening our own brands through capital and marketing investments, innovations
and active participation in the market, we have confidence in our ability to face future challenges and
create value for our stakeholders.
Strong logistics and a wide distribution reach to more than 7,400 partners in the Region are our strength.
Therefore, we have initiated new investments in strengthening production and logistics capacities and
expanding the distribution reach of the Group in the areas of Central and Northern Europe, that is, expanding
towards the south of Europe to markets where subsidiary companies do not currently exist.
In the territory of the Republic of Croatia, in Rijeka, we have launched an investment cycle in the construction
of a production and logistics complex on a 26,000 m
2
land area, and in the territory of the Republic of North
Macedonia, in Skopje, we have provided a new logistics centre with a current storage capacity of 7,600 m
2
and with a perspective of expansion towards 12,000 m
2
. Both investments are carried out in cooperation
with companies with a joint ultimate owner operating in the real estate management segment.
In the upcoming period, the Group will remain focused on process optimization and improvement through
further digitization.
In addition to focusing on organic growth, the Group will continue to monitor potential acquisitions that it
deems could contribute to business development.
As part of the ESG project, a detailed assessment and definition of material topics have been conducted,
and based on the results, the foundations have been laid for the adoption of a concrete sustainability
strategy that will be officially adopted in 2024.
Each sustainability report so far has served as a starting point and a guide for areas that need to or may
be improved. It is precisely the adoption of the strategy and the definition of key performance indicators
that we will adopt for the next 3-year period that will be a commitment to all our stakeholders in our
dedication to sustainable business and our desire to improve our impacts on the environment, society and
the community.
We are aware that only through joint efforts, each within their sphere of influence, can we make the changes
we all want to see and ensure a better future for our children.
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M SAN GRUPA ANNUAL REPORT 2023 67
Pursuant to the Accounting Act of the Republic of Croatia, the Management is responsible for ensuring
that consolidated and separate financial statements are prepared for each financial year in accordance with
International Financial Reporting Standards (‘IFRS EU’), as adopted by the European Union, which provide a true
and fair view of the financial position and results of operations of M San Grupa d.d., Zagreb (“the Company”)
and its subsidiaries (“the Group”) for that period. After making appropriate enquiries, the Management has a
reasonable expectation that the Company and the Group have adequate resources to continue in operational
existence for the foreseeable future. For this reason, the Management continues to prepare the separate and
consolidated financial statements on a going concern basis. In preparing consolidated and separate financial
statements, the responsibilities of the Management Board include ensuring that:
• suitable accounting policies are selected and then applied consistently;
• judgments and estimates are reasonable and prudent;
• applicable accounting standards are followed; and:
• financial statements are prepared under the going-concern assumption.
The Management is responsible for keeping proper accounting records, which disclose with reasonable
accuracy at any time, the financial position of the Company and the Group and must also ensure that the
financial statements comply with the Croatian Accounting Act. The Management is also responsible for
safeguarding the assets of the Company and of the Group and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
Responsibility for consolidated and
separate financial statements
Vladimir Brkljača
Member of the Management Board
Irena Langer-Breznik
President of the Management Board
Goran Kotlarević
Member of the Management Board
Žarko Kruljac
Member of the Management Board
Slaven Stipančić
Member of the Management Board
23 April 2024
Alen Panić
Member of the Management Board

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M SAN GRUPA ANNUAL REPORT 2023
AUDITOR’S REPORT
and Financial
Statements
M SAN GRUPA ANNUAL REPORT 202368

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M SAN GRUPA ANNUAL REPORT 2023 69
AUDITOR’S REPORT

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M SAN GRUPA ANNUAL REPORT 2023

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M SAN GRUPA ANNUAL REPORT 2023

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M SAN GRUPA ANNUAL REPORT 2023

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M SAN GRUPA ANNUAL REPORT 2023

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M SAN GRUPA ANNUAL REPORT 2023

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Consolidated statement of comprehensive income
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 79
Notes 2023
2022
OPERATING INCOME
Sales 5 467,963
429,811
Cost of goods sold 8 (402,694)
(367,987)
Gross profit
65,269
61,824
Other operating income 6 3,709
2,458
Increase in inventories of finished goods and work in progress
292
978
OPERATING EXPENSES
Cost of raw material and supplies 7 (8,755)
(9,634)
Cost of services 9 (23,238)
(21,535)
Staff costs 10 (20,556)
(17,526)
Depreciation and amortization 11 (2,738)
(3,675)
Other expenses 12 (4,636)
(4,813)
Impairment allowance 13 (282)
(137)
Provisions for risks 13.1 (147)
(917)
Other operating expenses 14 (664)
(193)
Total operating expenses
(61,016)
(58,430)
Operating profit
8,254
6,830
FINANCIAL INCOME AND EXPENSES
Financial income 15.1. 1,951
2,748
Financial expenses 15.2. (4,970)
(7,009)
Net financial expense
(3,019)
(4,261)
Share of net result of associates 16 24
(312)
Profit before tax
5,259
2,257
Income tax 17 (648)
(575)
Profit for the year
4,611
1,682
OTHER COMPREHENSIVE INCOME
Translation exchange differences and other
23
139
Total comprehensive income for the year
4,634
1,821
Profit attributable to:
Equity holders of the Company
4,608
1,466
Non-controlling interests
3
216
4,611
1,682
Total comprehensive income attributable to:
Equity holders of the Company
4,631
1,598
Non-controlling interests
3
223
4,634
1,821
Accounting policies and notes are integral part of these financial statements



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Consolidated statement of financial position
at 31 December 2023
(all amounts sre expressed in thousands of euro)
80 M SAN GRUPA ANNUAL REPORT 2023
ASSETS Notes
31 December
2023
31 December
2022
NON-CURRENT ASSETS
Intangible assets 18 7,452
3,780
Goodwill 19 5,377
7,688
Property, plant and equipment 20 3,931
2,682
Investment in associates and other financial asset 21 15,186
15,162
Deposits and loans given 26 2,468
2,452
Long-term receivables
24
17
Deferred tax assets 17 7
24
TOTAL NON-CURRENT ASSETS
34,445
31,805
CURRENT ASSETS
Inventories 22 49,185
61,503
Trade receivables 24 70,550
52,606
Prepayments 23 2,902
1,612
Receivables from the State and other institutions 25 871
1,131
Given loans and deposits 26 1,719
654
Prepaid expenses and accrued income 27 1,180
1,528
Other receivables 28 2,409
768
Cash and cash equivalents 29 24,015
14,526
TOTAL CURRENT ASSETS
152,831
134,328
TOTAL ASSETS
187,276
166,133
Accounting policies and notes are integral part of these financial statement

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Consolidated statement of financial position (continued)
at 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 81
EQUITY AND LIABILITIES
Notes
31 December
2023
31 December
2022
EQUITY
Share capital
30
14,493
14,493
Legal reserves
2,220
2,220
Reserves from exchange of foreign currencies
(623)
(646)
Retained earnings
31
29,100
24,492
EQUITY HOLDERS OF THE PARENT
45,190
40,559
Non-controlling interest
32
66
63
TOTAL EQUITY
45,256
40,622
NON-CURRENT LIABILITIES
Provisions
33
999
1,014
Long-term borrowings
34
3,354
2,509
Long-term bond liabilities
37
18,581
21,236
Other long-term liabilities
38
651
1,062
Long-term liabilities for right-of-use assets
35
406
925
Deffered tax liability
17
824
-
TOTAL NON-CURRENT LIABILITIES
24,815
26,746
CURRENT LIABILITIES
Short-term bank borrowings and loans
36
21,759
20,968
Current portion of long-term bond liabilities
37
2,654
2,654
Advances received
39
2,698
1,247
Trade payables
40
74,059
61,757
Current portion of long-term liabilities for right-of-use asset
35
492
508
Payables towards employees
1,241
1,124
Taxes, contributions and similar payables
41
5,517
4,028
Income tax liability
200
97
Factoring liabilities
42
3,922
3,157
Other current liabilities
43
1,720
1,576
Accrued expenses and deferred income
44
2,943
1,649
TOTAL CURRENT LIABILITIES
117,205
98,765
TOTAL EQUITY AND LIABILITIES
187,276
166,133
Accounting policies and notes are integral part of these financial statement



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Consolidated statement of changes in shareholder's equity
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
82 M SAN GRUPA ANNUAL REPORT 2023
Share
capital
Legal
reserves
Foreign
currency
translation
reserves
Retained
earnings
Equity
holders of
the parent
Non-
controlling
interest
Total
Balance at 1 January 2022 14,493
2,220
(739)
31,615
47,589
2,772
50,361
Capital increase (note 48) -
-
-
-
-
718
718
Separation of real estate segment (note 48) -
-
-
(5,947)
(5,947)
-
(5,947)
Increase in non-controlling interest (note 48) -
-
-
(605)
(605)
4,461
3,856
Transfer of control in affiliated company (note 48) -
-
-
(2,076)
(2,076)
(8,111)
(10,187)
Profit for the year -
-
-
1,466
1,466
216
1,682
Other comprehensive income -
-
93
39
132
7
139
Total comprehensive income for the year -
-
93
1,505
1,598
223
1,821
Balance at 31 December 2022 14,493
2,220
(646)
24,492
40,559
63
40,622
Profit for the year -
-
-
4,608
4,608
3
4,611
Other comprehensive income -
-
23
-
23
-
23
Total comprehensive income for the year -
-
23
4,608
4,631
3
4,634
Balance at 31 December 2023 14,493
2,220
(623)
29,100
45,190
66
45,256
Accounting policies and notes are integral part of these financial statement


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Consolidated statement of cash flows
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 83
Notes 2023
2022
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the year
4,611
1,682
Adjusted by:
Income tax 17 648
575
Depreciation and amortization 11 2,738
3,675
Impairment allowance of trade receivables 13 279
14
Net movement in long-term provisions 33, 34 123
873
Profit from bargain purchase 48.2 (1,560)
-
Net interest expense
15.1.,
15.2.
2,370
1,629
Net other non-cash adjustments
(36)
66
9,173
8,514
CHANGES IN WORKING CAPITAL
Decrease/(increase) in inventory
12,317
(24,419)
Increase in trade receivables
(18,230)
(9,176)
(Increase) / decrease in given advances
(1,290)
2,993
Increase in other receivables
(1,192)
(24)
Increase / (decrease) in received advances
1,451
(146)
Increase in trade payables
12,302
13,203
Non
-
monetary transactions
-
compensations carried out on given and received
loans
(822)
(6,311)
Expected payment for the acquisition of subsidiaries 38, 43 285
(1,599)
Increase in other current liabilities
2,929
1,668
CASH GENERATED FROM OPERATIONS
16,923
(15,297)
Interests paid
(1,198)
(1,007)
Income taxes paid
(572)
(486)
Net cash generated from/(used in) operating activities
15,153
(16,790)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment and intangible assets 18, 20 (1,185)
(1,712)
Interests collected
172
534
Cash disbursements for acquisition of subsidiaries

48.2 (2,363)
(2,177)
Cash disbursements for establishment of a subsidiary
48.2 -
(100)
Cash receipts from acquisition of subsidiaries
48.2 60
279
Cash disbursement due to the loss of control
over the subsidiary EBP
48.2 -
(517)
Cash receipts from the sale of fixed assets
208
24
(Increase)/decrease in other financial assets
(41)
19
Cash disbursements from loans given
(1,091)
(181)
Net cash used in from investing activities
(4,240)
(3,831)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash receipts from financial institutions
95,241
78,869
Payments made to financial institutions
(93,476)
(54,681)
Cash inflows for right-of-use assets 35 -
895
Liability repayments for right-of-use-assets 35 (535)
(246)
Cash disburstments for issued bonds 37 (2,654)
(2,654)
Net cash used in/(generated from) financing activities
(1,424)
22,183
Net increase in cash and cash equivalents
9,489
1,562
Cash and cash equivalents at the beginning of the year 29 14,526
12,964
Cash and cash equivalents at the end of year 29 24,015
14,526
Accounting policies and notes are integral part of these financial statement



Graphics
Separate statement of comprehensive income
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
84 M SAN GRUPA ANNUAL REPORT 2023
Notes 2023
2022
OPERATING INCOME
Sales 5 335,157
324,647
Cost of goods sold 8 (300,115)
(292,306)
Gross profit
35,042
32,341
Other operating income 6 1,249
1,158
(Decrease)/increase in the value of inventories of work
-
in
-
progress and
finished goods
(200)
6
OPERATING EXPENSES
Cost of raw material and supplies 7 (3,271)
(1,939)
Cost of services 9 (16,661)
(16,203)
Staff costs 10 (8,316)
(6,878)
Depreciation and amortization 11 (1,396)
(1,554)
Other expenses 12 (1,917)
(2,177)
Impairment allowance 13 (84)
(69)
Provisions for risks 13.1 (66)
(691)
Other operating expenses 14 (86)
(119)
Total operating expenses
(31,797)
(29,630)
OPERATING PROFIT
4,294
3,875
FINANCIAL INCOME AND EXPENSES
Financial income 15.1. 1,954
3,494
Financial expenses 15.2. (4,793)
(6,899)
Net financial expense
(2,839)
(3,405)
Share of net result of associate 16 -
-
Profit before tax
1,455
470
Income tax 17 (71)
(119)
PROFIT FOR THE YEAR
1,384
351
OTHER COMPREHENSIVE INCOME
-
-
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
1,384
351
Accounting policies and notes are integral part of these financial statement



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Separate statement of financial position
at 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 85
ASSETS Notes
31
December
2023
31
December
2022
NON-CURRENT ASSETS
Intangible assets 18 2,805
3,633
Property, plant and equipment 20 645
573
Investments in subsidiaries and associates 21 26,040
24,061
Deposits and loans given 26 2,429
2,429
Long-term receivables
17
17
Deferred tax assets 17 -
18
TOTAL NON-CURRENT ASSETS
31,936
30,731
CURRENT ASSETS
Inventories 22 30,283
39,696
Trade receivables 24 46,539
33,226
Prepayments 23 2,491
1,319
Receivables from employees
12
12
Other financial assets
41
-
Receivables from the State and other institutions 25 59
132
Loans and deposits given 26 353
661
Prepaid expenses and accrued income 27 34
416
Other receivables 28 327
422
Cash and cash equivalents 29 16,302
9,893
TOTAL CURRENT ASSETS
96,441
85,777
TOTAL ASSETS
128,377
116,508
Accounting policies and notes are integral part of these financial statement

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Separate statement of financial position (continued)
at 31 December 2023
(all amounts are expressed in thousands of euro)
86 M SAN GRUPA ANNUAL REPORT 2023
EQUITY AND LIABILITIES Notes
31
December
202
3
31
December
202
2
EQUITY
Share capital 30 14,493
14,493
Legal reserves
2,143
2,143
Retained earnings 31 2,798
1,414
TOTAL EQUITY
19,434
18,050
NON-CURRENT LIABILITIES
Provisions 33 790
780
Long-term bond liabilities 37 18,581
21,236
Long-term loans liabilities 34 2,731
1,704
Other long-term liabilities 38 641
1,057
Long-term liabilities for right-of-use assets 35 2
25
TOTAL NON-CURRENT LIABILITIES
22,745
24,802
CURRENT LIABILITIES
Short-term bank borrowings 36 16,770
16,445
Current portion of non-current bond payables 37 2,654
2,654
Advances received 39 809
1,712
Trade payables 40 58,202
46,919
Short-term liabilities for right-of-use assets 35 20
49
Payables to employees
458
436
Taxes, contributions and similar payable 41 3,876
2,911
Factoring liabilities 42 1,362
636
Other current liabilities 43 1,335
1,254
Accrued expenses and deferred income 44 712
640
TOTAL CURRENT LIABILITIES
86,198
73,656
TOTAL EQUITY AND LIABILITIES
128,377
116,508
Accounting policies and notes are integral part of these financial statement


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Separate statement of changes in shareholder's equity
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 87
Share
capital
Legal
reserves
Retained
earnings
Total
Balance at 1 January 2022 14,493
2,143
6,554
23,191
Merger of a company (note 48) -
-
(225)
(225)
Separation of an affiliated company (note 48) -
-
(5,266)
(5,266)
Profit for the year -
-
351
351
Total comprehensive income -
-
351
351
Balance at 31 December 2022 14,493
2,143
1,414
18,050
Profit for the year -
-
1,384
1,384
Total comprehensive income -
-
1,384
1,384
Balance at 31 December 2023 14,493
2,143
2,798
19,434
Accounting policies and notes are integral part of these financial statemen


Graphics
Separate statement of cash flows
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
88 M SAN GRUPA ANNUAL REPORT 2023
CASH FLOWS FROM OPERATING ACTIVITIES Notes 2023
2022
Profit for the year
1,384
351
Adjusted by:
Income tax 17 71
119
Depreciation and amortization 11 1,396
1,554
Impairment allowance of trade receivables 13 84
-
Impairment of given loans
308
265
Losses from investments in shares 15.2 95
-
Net movement in long-term provisions 33, 34 66
691
Net interest expense
15.1.,
15.2.
1,947
1,290
Other non-monetary transactions
-
19
5,351
4,289
CHANGES IN WORKING CAPITAL
Decrease/(increase) in inventory
9,415
(18,287)
Increse in trade receivables
(13,397)
(2,847)
Decrease/(increase) in given advances
(1,171)
1,696
Decrease/(increase) in other receivables
396
(363)
(Decrease)/increase in received advances
(902)
935
Increase in trade payables
11,283
4,823
Non-cash transactions on loans given and received
(822)
(7,014)
The expected cash disbursement for the acquisition of the subsidiaries 38, 43 285
(1,599)
Increase in other current liabilities
715
56
CASH GENERATED FROM OPERATIONS
11,153
(18,311)
Interests paid
(1,150)
(798)
Income taxes paid
(52)
-
Net cash generated from operating activities
9,951
(19,109)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment and intangible assets 18, 20 (661)
(549)
Interests collected
168
552
Cash disbursements for acquisition of the subsidiaries
(2,363)
(2,177)
Cash disbursements for establishment of a subsidiary
-
(100)
(Increase)/decrease in other financial assets
(41)
(246)
Cash receipts/ (disbursements) for loans given
8
(38)
Cash receipts from the sale of fixed assets
3
24
Net cash used in investing activities
(2,886)
(2,534)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash receipts from credit institution
65,280
58,118
Repayments of loans to financial institutions
(63,230)
(32,510)
Cash inflows for right-of-use assets
-
8
Liability repayments for right-of-use-assets
(52)
(59)
Cash disburstments for issued bonds 37 (2,654)
(2,654)
Net cash used in financing activities
(656)
22,903
Net increase in cash and cash equivalents
6,409
1,260
Cash and cash equivalents at the beginning of the year 29 9,893
8,633
Cash and cash equivalents at the end of year 29 16,302
9,893
Accounting policies and notes are integral part of these financial statement




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Notes to the consolidated and separate financial statements
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 89
1. GENERAL INFORMATION
M SAN GRUPA d.o.o., Zagreb, is a limited liability company incorporated in Croatia on 17 July 1997. The sole
owner and founder of the Company is Mr. Stipo Matić.
The Company is registered for the manufacture of office machines and computers, software consulting and
supply, office machine and computer maintenance, sale and purchase of goods, trade mediation on domestic
and international markets, and computer training.
The Company's registered seat is in Rugvica (Rugvica Municipality), Dugoselska ulica 5, Croatia.
The following organisational functions of the Company and Group were transferred to the company Ured za
podršku d.o.o., fully owned by Stipo Matić: Finances, Accounting, Controlling, Project management, IT
Development and Support and Business Process Support (HR, General Affairs, Legal Affairs), which the company
performs for all entities owned by both the Company and Mr. Stipo Matić, for which it charges a fee (see Note 9).
Management Board in 2023 and 2022:
Miroslav Huzjak, President of Management Board until December 31, 2022
Irena Langer-Breznik, Member of Management Board until December 31, 2022 and President of Management
Bord since January 1, 2023
Žarko Kruljac, Member of Management Board
Slaven Stipančić, Member of Management Board
Goran Kotlarević, Member of Management Board
Pavo Leko, Member of Management Board until January 28, 2022
Miroslav Gabrić, Member of Management Board, since May 6, 2022, unitl March 8, 2023
Alen Panić, Member of Management Board, since October 1, 2022
Vladimir Brkljača, Member of Management Board, since October 1, 2022
Supervisory Board in 2023 and 2022:
Željko Menalo, President of Supervisory Board since January 1, 2023
Miroslav Huzjak, Deputy President of Supervisory Board since January 1, 2023
Stipo Matić, President of Supervisory Board until December 31, 2022 and Member of Management Board since
January 1, 2023
Marko Rašić, Deputy President of Supervisory Board until December 31, 2022 and Member of Management
Board since January 1, 2023
Snježana Matić, Member of Supervisory Board until April 7, 2024
Audit committee in 2023 and 2022:
Branislav Vrtačnik
Kristina Alebić
Branka Gerić



Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
90 M SAN GRUPA ANNUAL REPORT 2023
1. GENERAL INFORMATION (CONTINUED)
Subsidiaries
The Group consist of the company and the following subsidiaries in witch the company has an ownership stake
of more then 50% and control:
Name of related party Country
Ownership in %
Main Activity
2023 2022
KIM TEC D.O.O. VITEZ BIH 100% 100% Distribution of IT equipment
- KIM TEC SERVIS D.O.O. VITEZ BIH 100% 100% Maintenance of IT equipment
- KIM TEC EKO D.O.O. BIH 95% 95% Collection of EE waste
CENTAR KOMPETENCIJE ZA
ZELENU ENERGIJU D.O.O.
Croatia 100% 100% Consulting
KIM TEC D.O.O. PODGORICA Montenegro 100% 100% Distribution of IT equipment
PAKOM KOMPANI D.O.O.E.L. North Macedonia 100% 100% Distribution of IT equipment
KIM TEC D.O.O. BEOGRAD Serbia 100% 100% Distribution of IT equipment
-
KIM TEC SERVIS D.O.O.
BEOGRAD
Serbia 100% 100% Maintenance of IT equipment
Croatia
M SAN EKO D.O.O. Croatia 100% 100% Collection of EE waste
MR SERVIS D.O.O. Croatia 60% 60% Maintenance of IT equipment
ZELENA AGENDA 1.0. D.O.O. Croatia - 100% Consulting
KORVUS MK D.O.O.E.L North Macedonia 100% 100% ICT
ALTERNA DISTRIBUCIJA D.O.O. Slovenia 100% 100% Distribution of IT equipment
- MR PLUS SERVIS D.O.O. Slovenia 100% - Maintenance of IT equipment
DATA LINK D.O.O. Croatia 100% - Manufacturing
The Company acquired 100% of shares of the company DATA LINK d.o.o., on July 4, 2023 based on the contract
on the purchase of business shares. DATA LINK was founded in 1995 and has been operating on the market of
the Republic of Croatia for over 20 years. The company produces professional LED lighting, and develops
products and production technology, software solutions and the technology of LED lighting.
In March 2023, the Company sold its stake in Zelena Agenda 1.0 to Pametna energija d.o.o.
During July 2023, Alterna distribucija founded a new company called MR PLUS SERVIS d.o.o., with 100%
ownership.


Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 91
2. APPLICATION OF NEW STANDARDS, INTERPRETATIONS AND AMENDED INTERNATIONAL
FINANCIAL REPORTING STANDARDS (IFRSs)
Initial application of new amendments to the existing standards and interpretations effective for the
current financial period
The following amendments to the existing standards and new interpretation issued by the International
Accounting Standards Board (IASB) and adopted by the EU are effective for the current financial period:
• IFRS 17 “Insurance contracts” and amendments to IFRS 17 “Insurance contracts” – effective
for annual periods beginning on or after 1 January 2023
• Amendments to IAS 1 “Presentation of financial statements” and IFRS Practice Statement 2
– Disclosure of Accounting Policies, effective for annual periods beginning on or after 1 January 2023
• Amendments to IAS 8 “Accounting policies, Changes in Accounting Estimates and Errors” –
Definition of Accounting Estimates, effective for annual periods beginning on or after 1 January 2023
• Amendments to IAS 12 “Income Taxes” – Deferred Tax related to Assets and Liabilities arising
from a Single Transaction, effective for annual periods beginning on or after 1 January 2023
• Amendments to IAS 12 “Income Taxes” – International Tax Reform – Pillar Two Model Rules,
effective immediately upon the issue and for annual periods beginning on or after 1 January 2023
The adoption of these amendments to existing standards did not lead to significant changes in the
Company's/Group financial statements.

Standards, amendments to existing standards and interpretations issued by the IASB and adopted in
the European Union, but not yet effective
• Amendments to IFRS 16 “Leases” – Lease Liability in a Sale and Leaseback, effective for annual
periods beginning on or after 1 January 2024
• Amendments to IAS 1 “Presentation of Financial Statements” – Classification of Liabilities as
Current or Non-current Date, Classification of Liabilities as Current or Non-current – Deferral and Non-
current Liabilities with Covenants, effective for annual periods beginning on or after 1 January 2024


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Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
92 M SAN GRUPA ANNUAL REPORT 2023
2. APPLICATION OF NEW STANDARDS, INTERPRETATIONS AND AMENDED INTERNATIONAL
FINANCIAL REPORTING STANDARDS (IFRSs) (CONTINUED)
Standards and amendments to the existing standards issued by IASB and not yet adopted by the EU
IFRS currently adopted in the European Union do not differ significantly from the regulations adopted by the
International Accounting Standards Board (IASB), except for the following new standards and amendments
to existing standards, the adoption of which the European Union has not yet decided on (date of entry into
force set out below relate to IFRSs issued by the IASB):
• Amendments to IAS 7 “Statement of Cash Flows” and IFRS 7 “Financial Instruments” –
Disclosures Supplier Finance Arrangements, effective for annual periods beginning on or after 1
January 2024
• Amendments IAS 21 The Effects of Changes in Foreign Exchange Rates – Lack of
Exchangeability, effective for annual periods beginning on or after 1 January 2025
The Company/Group expects that the adoption of these new standards and amendments to existing standards
will not lead to significant changes in the Company's/Group’s financial statements in the period of the first
application of the standard.



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Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 93
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Statement of Compliance
Consolidated and separate financial statements are prepared in accordance with International Financial
Reporting Standards as adopted by the European Union (IFRS EU).
Basis of preparation and functional currency
The consolidated and separate financial statements have been prepared on the historical cost basis except
for certain financial instruments that are measured at fair values, as explained in the accounting policies
below. Historical cost is generally based on the fair value of the consideration given in exchange for assets.
The financial statements have been prepared under the going concern basis for all members of the Group.
Where necessary, comparative data have been adjusted to match changes in this year's presentation.
The items included in the Company's and Group financial statements are expressed in the currency of the primary
economic environment in which the Company and Group operate (functional currency). The Republic of Croatia
introduced the euro as the official currency on January 1, 2023, in accordance with the Law on the introduction of
the euro as the official currency in the Republic of Croatia. Given that, the Company and Group changed the
presentation currency for the purposes of preparing the financial statements for the year ended December 31,
2023 from kuna to euro. The financial statements for the year ended December 31, 2023 were first prepared in
euros. From January 1, 2023, the euro is also the functional currency of the Company and Group (until January
1, 2023, it was HRK). Although the change in the presentation currency in the financial statements represents a
change in accounting policy that requires retroactive application, the Company and Group did not publish the third
balance sheet in the financial statements for the year ended December 31, 2023 in accordance with International
Accounting Standard 8 (IAS) Accounting Policies, Changes in Accounting Estimates and Errors, given that it has
determined that the change in the presentation currency has no significant impact on the Company's and Group’s
financial statements, due to the stable HRK/EUR exchange rate over the past few years.
The financial statements for the year 2022 were drawn up in kuna as the functional and reporting currency that
was valid until December 31, 2022, but for the sake of comparability in this report, the financial data expressed in
euros was converted at a fixed conversion rate (1 EUR = 7.53450 HRK).
The principal accounting policies are set out below:
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities
controlled by the Company, i.e. its subsidiaries, including structured entities. Control is achieved when:
• The Company has power over the investee;
• The Company is exposed, or has rights, to variable returns from its involvement with the investee; and
• The Company has the ability to use its power to affect its returns.
The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there
are changes to one or more of the three elements of control listed above. When the Company has less than
a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient
to give it the practical ability to direct the relevant activities of the investee unilaterally.

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Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
94 M SAN GRUPA ANNUAL REPORT 2023
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Basis of consolidation (continued)
The Company considers all relevant facts and circumstances in assessing whether or not the voting rights in
an investee are sufficient to give it power, including:
• the size of the Company's holding of voting rights relative to the size and dispersion of holdings of
the other vote holders;
• potential voting rights held by the Company, other vote holders or other parties;
• rights arising from other contractual arrangements; and
• any additional facts and circumstances that indicate that the Company has, or does not have, the
current ability to direct the relevant activities at the time that decisions need to be made, including
voting patterns at previous shareholders' meetings.
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when
the Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or
disposed of during the year are included in the consolidated statement of profit or loss and other
comprehensive income from the date the Company gains control until the date when the Company ceases to
control the subsidiary.
Gain or loss and each component of other comprehensive income are attributed to the owners of the parent
(Company) and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed to
the owners of the Company and to the non-controlling interests even if this results in the non-controlling
interests having a deficit balance.
Accounting policies of subsidiaries are aligned with the those of parent company.
Changes in the Group's ownership interests in existing subsidiaries
Changes in the Group's ownership interests in subsidiaries that do not result in the Group losing control over the
subsidiaries are accounted for as equity transactions. The carrying amounts of the Group's interests and the non-
controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference
between the amount by which the non-controlling interests are adjusted and the fair value of the consideration
paid or received is recognised directly in equity and attributed to owners of the Company.
When the Group loses control of a subsidiary, a gain or loss is recognised in profit or loss and is calculated as the
difference between (i) the aggregate of the fair value of the consideration received and the fair value of any
retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the
subsidiary and any non-controlling interests. All amounts previously recognised in other comprehensive income
in relation to that subsidiary are accounted for as if the Group had directly disposed of the related assets or
liabilities of the subsidiary, i.e. reclassified to profit or loss or transferred to another category of equity as
specified/permitted by applicable IFRS.

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Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 95
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Business combinations
Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in
a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair
values of the assets transferred by the Company, liabilities incurred by the Company to the former owners of
the acquiree and the equity interests issued by the Company in exchange for control of the acquiree.
Acquisition-related costs are generally recognised in profit or loss as incurred. Business combinations under
common control are realized per carrying values of net asset.
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair
value, except that:
deferred tax assets or liabilities, and assets or liabilities related to employee benefit arrangements are
recognised and measured in accordance with IAS 12 “Income Taxes” and IAS 19 respectively;
liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-
based payment arrangements of the Group entered into to replace share-based payment arrangements
of the acquiree are measured in accordance with IFRS 2 at the acquisition date and
assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 “Non-current
Assets Held for Sale and Discontinued Operations” are measured in accordance with that Standard.
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-
controlling interests in the acquiree, and the fair value of the acquirer's previously held equity interest in the
acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the
liabilities assumed. If, after reassessment, the net of the acquisition-date amounts of the identifiable assets
acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-
controlling interests in the acquiree and the fair value of the acquirer's previously held interest in the acquiree
(if any), the excess is recognised immediately in profit or loss as a bargain purchase gain.
Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share
of the entity's net assets in the event of liquidation may be initially measured either at fair value or at the non-
controlling interests' proportionate share of the recognised amounts of the acquiree's identifiable net assets.
The choice of measurement basis is made on a transaction-by-transaction basis. Other types of non-
controlling interests are measured at fair value or, when applicable, on the basis specified in another IFRS.

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Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
96 M SAN GRUPA ANNUAL REPORT 2023
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Business combinations (continued)
When the consideration transferred by the Group in a business combination includes assets or liabilities
resulting from a contingent consideration arrangement, the contingent consideration is measured at its
acquisition-date fair value and included as part of the consideration transferred in a business combination.
Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are
adjusted retrospectively, with corresponding adjustments against goodwill. Measurement period adjustments
are adjustments that arise from additional information obtained during the ‘measurement period’ (which
cannot exceed one year from the acquisition date) about facts and circumstances that existed at the
acquisition date.
The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify
as measurement period adjustments depends on how the contingent consideration is classified. Contingent
consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent
settlement is accounted for within equity. Contingent consideration that is classified as an asset or a liability
is remeasured at subsequent reporting dates in accordance with IAS 37 “Provisions, Contingent Liabilities
and Contingent Assets”, as appropriate, with the corresponding gain or loss being recognised in profit or loss.
When a business combination is achieved in stages, the Group's previously held equity interest in the
acquiree is remeasured to its acquisition-date fair value and the resulting gain or loss, if any, is recognised in
profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously
been recognised in other comprehensive income are reclassified to profit or loss where such treatment would
be appropriate if that interest were disposed of.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which
the combination occurs, the Group reports provisional amounts for the items for which the accounting is
incomplete. Those provisional amounts are adjusted during the measurement period (see above), or
additional assets or liabilities are recognised, to reflect new information obtained about facts and
circumstances that existed at the acquisition date that, if known, would have affected the amounts recognised
at that date.
Goodwill
Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of
the business less accumulated impairment losses, if any.
For the purposes of impairment testing, goodwill is allocated to each of the Group's cash-generating units (or
groups of cash-generating units) that is expected to benefit from the synergies of the combination.

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Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 97
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Goodwill (continued)
A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more
frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-
generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying
amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the
carrying amount of each asset in the unit. An impairment loss recognised for goodwill is not reversed in
subsequent periods.
On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the
determination of the profit or loss on disposal.
The Group's policy for goodwill arising on the acquisition of an associate and a joint venture is described at
note below.
Investments in associates and joint ventures
An associate is an entity over which the Group has significant influence. Significant influence is the power to
participate in the financial and operating policy decisions of the investee but is not control or joint control over
those policies.
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have
rights to the net assets of the joint arrangement. Joint control is the contractually agreed sharing of control of
an arrangement, which exists only when decisions about the relevant activities require unanimous consent of
the parties sharing control.
The results and assets and liabilities of associates or joint ventures are incorporated in these consolidated
financial statements using the equity method of accounting. Under the equity method, an investment in an
associate or a joint venture is initially recognised in the consolidated statement of financial position at cost
and adjusted thereafter to recognise the Group's share of the profit or loss and other comprehensive income
of the associate or joint venture. When the Group's share of losses of an associate or a joint venture exceeds
the Group's interest in that associate or joint venture (which includes any long-term interests that, in
substance, form part of the Group's net investment in the associate or joint venture), the Group discontinues
recognising its share of further losses. Additional losses are recognised only to the extent that the Group has
incurred legal or constructive obligations or made payments on behalf of the associate or joint venture.

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Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
98 M SAN GRUPA ANNUAL REPORT 2023
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Investments in associates and joint ventures (continued)
An investment in an associate or a joint venture is accounted for using the equity method from the date on
which the investee becomes an associate or a joint venture. On acquisition of the investment in an associate
or a joint venture, any excess of the cost of the investment over the Group's share of the net fair value of the
identifiable assets and liabilities of the investee is recognised as goodwill, which is included within the carrying
amount of the investment. Any excess of the Group's share of the net fair value of the identifiable assets and
liabilities over the cost of the investment, after reassessment, is recognised immediately in profit or loss in the
period in which the investment is acquired. Where appropriate, the entire carrying amount of an interest,
including goodwill, is tested for impairment in accordance with IAS 36 “Impairment of Assets” as a single
asset by comparing its recoverable amount, which is the higher of its fair value and fair value less costs to
sell, with its book value. Any recognized impairment loss is included in the carrying amount of the interest. An
impairment loss is reversed in accordance with IAS 36 to the extent of a subsequent increase in the
recoverable amount of the interest.
Upon loss of control, the Group derecognises the assets of an associate or joint venture, shares in non-
controlling interests and other elements of equity and reserves relating to the associates or joint ventures.
Any surplus or deficit arising from the cessation of control is recognized in the income statement. If the Group
retains an interest in an associate or joint venture, that interest is stated at fair value at the date that control
ceases. Thereafter, it is accounted for as an investment that is measured using the equity method or in
accordance with the Group's accounting policy for financial instruments, depending on the level of retained
influence. In addition, the Group recognizes all amounts previously recognized in other comprehensive
income relating to the associate or joint venture that are no longer accounted for using the equity method on
the basis that would have been true if the associate or joint venture had sold the related assets or related
liabilities directly. Therefore, upon termination of the equity method, the Group transfers the profit or loss that
the associate or joint venture previously reported in other comprehensive income and then transfers to profit
or loss after disposal of the related assets or liabilities from equity (as a reclassification adjustment) to profit
and loss.
The Group continues to use the equity method when an investment in an associate becomes an investment
in a joint venture or an investment in a joint venture becomes an investment in an associate. There is no
remeasurement to fair value upon such changes in ownership interests. When the Group reduces its
ownership interest in an associate or a joint venture but the Group continues to use the equity method, the
Group reclassifies to profit or loss the proportion of the gain or loss that had previously been recognised in
other comprehensive income relating to that reduction in ownership interest if that gain or loss would be
reclassified to profit or loss on the disposal of the related assets or liabilities. Gains and losses from
transactions between an entity that is a member of the Group and an associate or joint venture of the Group
in the consolidated financial statements is recognized only up to the amount of the interest in that associate
or joint venture that do not relate to the Group.

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Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 99
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Investments in associates and joint ventures (continued)
An associate is an entity in which the Company has significant influence, but which is neither a subsidiary nor
a joint venture. Significant influence is the power to make decisions about financial and operational policies
of an investy, but not the control over those policies. In separate financial statements, investments in
associates are presented at cost. The cost is tested for impairment at each reporting date.
Investments in subsidiaries
Subsidiaries are entities controlled by the Company. Control is achieved when: the Company has power over
the investee, the Company is exposed, or have rights, to variable returns from its involvement with the
investee, and the Company have the ability to use its power to affect its returns.
The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there
are changes to one or more of the three elements of control listed above.
A subsidiary is an entity in which the Company has control or exercises, directly or indirectly, a controlling
influence. Control is achieved by acquiring more than 50 percent of shares or voting shares, exercising the
right to appoint the majority of the management or supervisory board members, actual decision-making in a
subsidiary through the controlling company having a control over the majority of vote in the subsidiary.
In separate financial statements, investments in former subsidiaries are presented at cost. The cost is tested
for impairment at each reporting date.
Revenue recognition
Revenue is generated from the sale of goods and provision of services.
Revenue is measured at the fair value of the consideration received or receivable less estimated returns from
customers, volume and similar discounts.
i) Sales of services
Revenue from a contract to provide services is recognised by reference to the stage of completion of the contract.
The stage of completion of the contract is determined as follows:
income from partially performed services (those provided over several accounting periods) is recognised by
reference to the stage of completion (measured based on the proportion of actual costs incurred relative to
the total budgeted costs).
Revenue from time and material contracts is recognised at the contractual rates as labour hours and direct
expenses are incurred.

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Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
100 M SAN GRUPA ANNUAL REPORT 2023
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Revenue recognition (continued)
ii) Sales of goods
Revenue from the sale of goods is recognised when all the following conditions are satisfied:
the Group and the Company have transferred to the buyer the significant risks and rewards of ownership
of the goods;
the Group and the Company retains neither continuing managerial involvement to the degree usually
associated with ownership nor effective control over the goods sold;
the amount of the revenue can be measured reliably;
it is probable that the economic benefits associated with the transaction will flow to the Company; and
the costs incurred or to be incurred on those transactions can be measured reliably.
Dividend and interest income
Dividend income, i.e. income from share in profits is recognised when the shareholder's right to receive payment
has been established, provided that it is probable that the economic benefits will flow to the Group and Company
and the amount of income can be measured reliably.
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the
Group and Company and the amount of income can be measured reliably. Interest income is accrued on a time
basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that
exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net
carrying amount on initial recognition.
Segmental reporting
A segment is a distinguishable component or part of the Group that is engaged either in sales of related products
or services (business segment) or in sales of products and services within a particular economic environment
(geographical segment) and is subject to risks and rewards that are different from those of other segments.
The Group identifies operating segments on the basis of internal reports about components of the Group that are
regularly reviewed by the chief operating decision maker (Management Board of the Company) in order to allocate
resources to the segments and to assess their performance. Details on the operating segments are disclosed in
note 4 to the consolidated and separate financial statements.
Foreign currencies
The individual financial statements of each Group entity are presented in the currency of the primary economic
environment in which the entity operates (its functional currency). For the purposes of consolidated financial
statements, the results and financial position of each group entity are expressed in thousand of euro (TEUR),
since this is the functional currency of the parent company and presentation currency of the consolidated financial
statements.

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Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 101
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Foreign currencies (continued)
In preparing the financial statements of each individual group entity, transactions in currencies other than the
entity's functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of
the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are
retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in
foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-
monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.
The exchange rates applied as of 31 December 2023 and 2022 as well as the average rates applied in the
translation of income and expense items are as follows:
Currency 31/12/2023
Average
exchange rate for
2023
31/12/2022
Average
exchange rate for
2022
RSD 117.16100 117.24563 117.30700 117.47730
KM 1.95583 1.95583 1.95580 1.95580
MKD 61.63450 61.54226 61.71760 61.61199
Exchange differences are recognised in profit or loss in the period in which they arise, except for:
exchange differences on foreign currency borrowings relating to assets under construction for future
productive use, which are included in the cost of those assets when they are regarded as an adjustment
to interest costs on those foreign currency borrowings;
exchange differences on monetary items receivable from or payable to a foreign operation for which
settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign
operation), which are recognised initially in other comprehensive income and reclassified from equity to
profit or loss on disposal of the entire or a part of the net investment.
For the purposes of presenting these consolidated financial statements, the assets and liabilities of the
Group's foreign operations are translated into EUR using exchange rates prevailing at the end of each
reporting period. Income and expense items are translated using the average exchange rates based on the
closing monthly exchange rates throughout the year, except in the case where there is a significant fluctuation
of exchange rates, in which case the exchange rates at the dates of the transactions are used. Exchange
differences arising, if any, are recognised in other comprehensive income and accumulated in equity (and
attributed to non-controlling interests as appropriate).

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Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
102 M SAN GRUPA ANNUAL REPORT 2023
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Foreign currencies (continued)
On the disposal of a foreign operation (i.e. a disposal of the Group's entire interest in a foreign operation, a
disposal involving loss of control over a subsidiary that includes a foreign operation, or a partial disposal of
an interest in a joint arrangement or an associate that includes a foreign operation of which the retained
interest becomes a financial asset), all of the exchange differences accumulated in equity in respect of that
operation attributable to the owners of the Company are reclassified to profit or loss.
In addition, in relation to a partial disposal of a subsidiary that includes a foreign operation that does not result
in the Group losing control over the subsidiary, the proportionate share of accumulated exchange differences
are re-attributed to non-controlling interests and are not recognised in profit or loss. For all other partial
disposals (i.e. partial disposals of associates or joint arrangements that do not result in the Group losing
significant influence or joint control), the proportionate share of the accumulated exchange differences is
reclassified to profit or loss.
Goodwill and fair value adjustments to identifiable assets acquired and liabilities assumed through acquisition
of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the rate
of exchange prevailing at the end of each reporting period. Exchange differences arising are recognised in
other comprehensive income.
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
i) Current tax
The tax currently payable is based on the taxable profit for the year. Taxable profit differs from the net profit
reported in the statement of comprehensive income because it excludes items of income or expense that are
taxable or deductible in other years and it further excludes items that are not taxable or deductible. The Group’s
and the Group’s and the Company’s liability for current tax is calculated using tax rates that have been enacted
or substantively enacted by the end of the reporting period.
ii) Deferred tax
Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are
generally recognized for all taxable temporary differences, and deferred tax assets are generally recognized for
all deductible temporary differences to the extent that it is probable that taxable profits will be available against
which those deductible temporary differences can be utilized. Such assets and liabilities are not recognised if the
temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of
other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

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Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 103
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Taxation (continued)
ii) Deferred tax (continued)
Deferred tax liabilities are recognised for taxable temporary differences associated with investments in
subsidiaries and associates, and interests in joint ventures, except where the Group and the Company is able to
control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in
the foreseeable future. Deferred tax liabilities are recognised for taxable temporary differences associated with
investments in subsidiaries and associates, and interests in joint ventures and it is probable that the temporary
difference will not reverse in the foreseeable future. The carrying amount of deferred tax assets is reviewed at
each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will
be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which
the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets
reflects the tax consequences that would follow from the manner in which the Group and Company expecte, at
the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
iii) Current and deferred tax for the year
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in
other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised
in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from
the initial accounting for a business combination, the tax effect is included in the accounting for the business
combination.
Property, plant and equipment
Land and buildings used in the production or delivery of goods or services or for administrative purposes are
presented in the consolidated and separate statement of financial position at historical cost, less accumulated
depreciation and impairment losses.
Plant and equipment are recognised as tangible fixed assets if their individual useful life exceeds one year and
unit cost is over EUR 500. Plant and equipment are carried at cost, which includes all costs directly attributable
to bringing an asset to a working condition for its intended use.
Subsequent costs are included in the asset's carrying amount or as a separate asset, as appropriate, only if it is
probable that future economic benefits associated with the asset will flow to the Group and the cost of the asset
can be measured reliably. All other repairs and maintenance represent an expense in the income statement in
the period in which they are incurred.
Any gain on disposal of an item of tangible assets is credited directly to income.

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Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
104 M SAN GRUPA ANNUAL REPORT 2023
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Property, plant and equipment (continued)
The estimated useful lives and the applicable annual depreciation rates for principal categories of property and
equipment were as follows:
Depreciation rates
Buildings
2.50-3.00%
Electronic equipment and software
25-50%
Equipment
10-40%
Personal cars
20-40%
Vehicles (other than personal cars)
25-50%
Furniture and office equipment 20-50%
Owned land is not depreciated.
Intangible assets
Intangible assets acquired separately
Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated
amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over
their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of
each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.
Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated
impairment losses.
Internally generated intangible assets – research and development expenditure
Expenditure on research activities is recognised as an expense in the period in which it is incurred.
An internally-generated intangible asset arising from development (or from the development phase of an
internal project) is recognised if, and only if, all of the following have been demonstrated:
- the technical feasibility of completing the intangible asset so that it will be available for use or sale;
- the intention to complete the intangible asset and use or sell it;
- the ability to use or sell the intangible asset;
- how the intangible asset will generate probable future economic benefits;
- the availability of adequate technical, financial and other resources to complete the development and to
use or sell the intangible asset; and
- the ability to measure reliably the expenditure attributable to the intangible asset during its development.

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Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 105
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Intangible assets (continued)
Internally generated intangible assets – research and development expenditure (continued)
The amount initially recognised for internally-generated intangible assets is the sum of the expenditure
incurred from the date when the intangible asset first meets the recognition criteria listed above. Where no
internally-generated intangible asset can be recognised, development expenditure is recognised in profit or
loss in the period in which it is incurred.
Subsequent to initial recognition, internally-generated intangible assets are reported at cost less accumulated
amortisation and accumulated impairment losses, on the same basis as intangible assets that are acquired
separately.
Intangible assets acquired in a business combination
Intangible assets acquired in a business combination and recognised separately from goodwill are initially
recognised at their fair value at the acquisition date (which is regarded as their cost).
Subsequent to initial recognition, intangible assets acquired in a business combination are reported at cost less
accumulated amortisation and accumulated impairment losses, on the same basis as intangible assets that are
acquired separately.
Derecognition of intangible assets
An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or
disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between
the net disposal proceeds and the carrying amount of the asset, are recognised in profit or loss when the asset is
derecognised.
Amortization rates for intangible assets amounted from 20-25%.
Impairment of tangible and intangible assets, excluding goodwill
At the end of each reporting period, the Group and the Company review the carrying amounts of its tangible and
intangible assets to determine whether there is any indication that those assets have suffered an impairment loss.
If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of
the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset,
the Group and the Company estimate the recoverable amount of the cash-generating unit to which the asset
belongs. Where a reasonable and consistent basis of allocation can be identified, corporate assets are also
allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-
generating units for which a reasonable and consistent allocation basis can be identified.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for
impairment at least annually, and whenever there is an indication that the asset may be impaired.
Tangible assets at historical cost are depreciated according to the linear method, during the useful life of the
assets, starting in the first month after the asset is put into use.

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Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
106 M SAN GRUPA ANNUAL REPORT 2023
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Impairment of tangible and intangible assets, excluding goodwill (continued)
Impairment losses are recognised immediately as expenses. Where an impairment loss subsequently reverses,
the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable
amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would
have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior
years. A reversal of an impairment loss is recognised immediately in profit or loss.
Inventories
Inventories are stated at the lower of cost and net realisable value.The cost of merchandise includes purchase
price, import duties and other costs directly attributable to acquisition of merchandise. Merchandise on stock for
wholesale purposes is carried at cost. The cost is determined using the FIFO method. Small inventory includes
tools, plant and office fittings and similar items that are expected to be used for a period of up to one year, as well
as assets not considered fixed assets. Small inventory, tyres and spare parts are fully expenses when put in use.
The Company also determines the value of slow-moving and obsolete inventories, and makes an impairment
allowance for such inventories by reference to their fair value.
Cash and cash equivalents
Cash and cash equivalents comprise of cash in hand and the balance on bank accounts.

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Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 107
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Leases
Leases are recognized as a right-of-use asset and a lease liability whenever substantially all the risks and
rewards incidental to ownership of the asset are transferred to the lessee over the term of the lease, except:
- low-value leases,
- leases whose lease term ends within a period of 12 months from the date of the first application or less and
- possibility of unilateral termination of the contract, no significant penalties imposed.
When concluding a contract, the Group assesses whether the contract is or contains lease characteristics.
That is, it assesses whether the contract transfers the right to control the use of the property in question over
time in exchange for compensation.
The Group as a lessee
For all leases, except short-term leases and leases of low-value assets, the Group applies a single approach
to recognition and measurement. The Group recognizes lease payment liabilities and the right-of-use asset,
which is the right to use the asset in question.
Right-of-use assets
The Group recognizes a right-of-use asset at the time the lease is entered into (i.e. when the asset in question
is available for use). Right-of-use assets are measured at cost less accumulated depreciation and impairment
losses and are adjusted for remeasurement of lease liabilities. The cost of the right-of-use assets includes
the amount of recognized lease liabilities, initial direct costs and lease payments made on or before the date
of the contract, less any lease incentives received. Right-of-use assets are depreciated on a straight-line
basis over the term of the lease.
Lease liabilities
When entering into a lease, the Group recognizes lease liabilities, measured at the present value of future
lease payments over the term of the lease. Lease payments include fixed payments, variable payments that
depend on an index or rate, and amounts expected to be paid from residual value guarantees. Lease
payments may include the value of a purchase option that is expected to be realized with reasonable certainty
and the payment of a penalty for terminating the lease if the terms of the contract provide for a termination
option. Variable lease payments that do not depend on an index or rate are recognized as an expense in the
period in which the event or condition that conditions the payment occurs.
Lease liabilities are reported as a separate item under long-term and short-term liabilities. The statement of
comprehensive income shows the cost of depreciation of assets with the right of use and interest costs on
lease obligations (see note 35).

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Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
108 M SAN GRUPA ANNUAL REPORT 2023
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Financial instruments
Financial assets and financial liabilities are recognised when the Group and the Company become a party to
the contractual provisions of the instruments. Financial assets and financial liabilities are initially measured at
fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and
financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are
added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities
at fair value through profit or loss are recognised immediately in profit or loss.
Financial assets
Classification of financial assets
After initial recognition, financial assets are classified as assets at amortized cost, assets at fair value through
other comprehensive income (FVOCI) and assets at fair value through profit and loss (FVTPL) depending on
the business model and the characteristics of the contracted cash flows from financial assets.
Financial assets at amortized cost
Financial assets are measured at amortized cost if they meet both of the following conditions and if they are
not valued at fair value through profit and loss (FVTPL):
The purpose of a business model is to hold assets in order to collect contractual cash flows; and
The contractual terms of a financial asset represent cash flows that are solely principal and interest
payments (SPPI), at specific dates.
This category includes: given loans and deposits, trade receivables and cash and cash equivalents.

Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 109
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Financial assets (continued)
Impairment of financial assets
The Company and the Group recognise allowances for expected credit losses (ECLs) for trade receivables.
The amount of expected credit losses is calculated at each reporting date to reflect changes in credit risk
since initial recognition of the respective financial instrument. ECLs are based on the difference between the
contractual cash flows due in accordance with the contract and all the cash flows that the Company and the
Group expects to receive.
For credit exposures for which there has not been a significant increase in credit risk since initial recognition,
ECLs are recognized for credit losses that result from default events that are possible within the next 12-
months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit
risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of
the exposure, irrespective of the timing of the default (a lifetime ECL).
For trade receivables and contract assets, the Company and the Group applies a simplified approach in
calculating ECLs. Accordingly, the Company and the Group does not track changes in credit risk, but instead
recognises a loss allowance based on lifetime ECLs at each reporting date. The expected credit losses on
these financial assets are estimated using a provision matrix based on the Company’s and Group’s historical
credit loss experience, adjusted for factors specific to the debtors.
For loans given, the Company and the Group measure expected credit losses as a function of the probability
of occurrence of default status (PD), loss in case of occurrence of default status (LGD), ie the amount of loss
if default occurrs and exposure at the time of default (EAD). To assess PD parameters, the Company and the
Group rely on the publications of external investment rating agencies. The LGD parameter is estimated
internally and depends on the collateralisation of the loan, and for unsecured loans it is 100%. As for the
exposure at the time of default, for financial assets it represents the gross carrying amount of the asset at the
reporting date.
(i) Significant increase in credit risk
When assessing whether the credit risk for the receivables from customers significantly increased since the
initial recognition, the Company and the Group compares the risk of default on the reporting date to the risk
of default on the date of initial recognition. During the assessment, the Company and the Group considers
both quantitative and qualitative information which are reasonable and available, including the historical
experience, which can be accessed without unnecessary costs or engagements. In particular, the Company
and the Group relies on days of default when assessing significant credit risk deterioration.
Despite the foregoing, the Company assumes that the credit risk of customers has not increased significantly
since initial recognition if the customer is determined to have low credit risk at the reporting date.

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Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
110 M SAN GRUPA ANNUAL REPORT 2023
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Financial assets (continued)
A financial instrument is determined to have low credit risk if:
The financial instrument has a low risk of default,
The debtor has a strong capacity to meet its contractual cash flow obligations in the near term, and
Adverse changes in economic and business conditions in the longer term may, but will not
necessarily, reduce the ability of the borrower to fulfil its contractual cash flow obligations.
(ii) Definition of default
The Company and the Group considers the following as constituting an event of default for internal credit risk
management purposes as historical experience indicates that financial assets that meet either of the following
criteria are generally not recoverable:
when there is a breach of financial covenants by the debtor; or
information developed internally or obtained from external sources indicates that the debtor is unlikely
to pay its creditors, including the Company and the Group, in full
(iii) Credit-impaired financial assets
A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated
future cash flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired
includes observable data about the following events:
significant financial difficulty of the issuer or the borrower;
a breach of contract, such as a default or past due event (see (ii) above);
the lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial
difficulty, having granted to the borrower a concession(s) that the lender(s) would not otherwise
consider;
it is becoming probable that the borrower will enter bankruptcy or other financial reorganisation; or
the disappearance of an active market for that financial asset because of financial difficulties.

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Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 111
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Financial assets (continued)
(iv) Write-off policy
The Company and the Group writes off a financial asset when there is information indicating that the debtor
is in severe financial difficulty and there is no realistic prospect of recovery, e.g. when the debtor has been
placed under liquidation or has entered into bankruptcy proceedings, or in the case of trade receivables, when
the amounts are over year past due, whichever occurs sooner. Financial assets written off may still be subject
to enforcement activities under the Company’s and Group’s recovery procedures, taking into account legal
advice where appropriate. Any recoveries made are recognised in profit or loss.
(v) Derecognition of financial assets
The Company and the Group derecognises a financial asset only when the contractual rights to the cash
flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards
of ownership of the asset to another entity.
If the Company and the Group neither transfers nor retains substantially all the risks and rewards of ownership
and continues to control the transferred asset, the Company and the Group recognises its retained interest
in the asset and an associated liability for amounts it may have to pay. If the Company and the Group retains
substantially all the risks and rewards of ownership of a transferred financial asset, the Company and the
Group continues to recognise the financial asset and also recognises a collateralised borrowing for the
proceeds received.
On derecognition of a financial asset measured at amortised cost, the difference between the asset’s carrying
amount and the sum of the consideration received and receivable is recognised in profit or loss.

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Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
112 M SAN GRUPA ANNUAL REPORT 2023
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Financial liabilities
All financial liabilities are measured subsequently at amortised cost using the effective interest method or at
FVTPL.
The Company and the Group measures all financial liabilities at amortized cost.
However, financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition
or when the continuing involvement approach applies, and financial guarantee contracts issued by the
Company and the Group, are measured in accordance with the specific accounting policies set out below.
Financial liabilities measured subsequently at amortised cost
Financial liabilities that are not (i) contingent consideration of an acquirer in a business combination, (ii) held-
for-trading, or (iii) designated as at FVTPL, are measured subsequently at amortised cost using the effective
interest method.
The effective interest rate method is the method of calculating the amortized cost of the financial liability and
the allocation of interest expense over the relevant period. The effective interest rate method is the rate that
accurately discounts the estimated future cash payments (including any fees and points paid or received that
form an integral part of the effective interest rate, transaction costs and other premiums or discounts) over
the expected life of the financial obligation or, where appropriate, a shorter period, to the amortized cost of
financial liability.
Classification in liabilities or equity
Debt and equity instruments are classified either as financial liabilities or equity, in accordance with the
substance of the contract.
Equity instruments
The equity instrument is a contract that provides evidence of the remainder of the stake in the entity's property
after deducting all of its liabilities. The equity instruments issued by the Company are recorded in the amount
of income earned, less direct costs of issuance.
Financial liabilities
Other financial liabilities, including borrowings and loans, and bonds, are initially measured at fair value less
transaction costs. Other financial liabilities are subsequently measured at amortized cost using the effective
interest method, whereby interest expense is recognized on the basis of effective yield.
The effective interest method is a method for calculating the amortized cost of financial liabilities and interest
expense allocations over the relevant period. Effective interest rate is the rate at which the estimated future
cash outflows are discounted over the expected life of the financial liability or a shorter period if applicable.

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Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 113
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Financial liabilities (continued)
Derecognition of financial liabilities
The Company and the Group derecognizes financial liabilities when, and only when, the Company’s and the
Group’s obligations are discharged, cancelled or they expire.
Provisions
Provisions are recognised when the Group or the Company have a present obligation (legal or constructive)
as a result of a past event, it is probable that the Group or the Company will be required to settle the obligation,
and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at each reporting
date date and adjusted to reflect the current best estimate.
Where the effect of discounting is material, the amount of the provision is the present value of the expenditures
expected to be required to settle the obligation. Where discounting is used, the reversal of such discounting
in each year is recognized as finance costs.
Provisions for termination benefits are recognised when the Group and the Company have committed to
terminate employment contracts with its employees i.e. when it has a detailed formal plan to terminate
employment agreements that is reasonably unlikely to be abandoned.
Warranty provision for own brands
Warranty provisions for own brands, representing provisions for repairs and replacements within a warranty
period, are determined based on the volume and cost of goods complained of as faulty (goods received for
servicing) by groups of products. Warranty provision for external brands are not recognized since the
complete risk is carried by the suppliers.
The amount of provision is determined by applying an annual percentage of individual groups of faulty products
covered by warranty (i.e. received for servicing) as a share in the total annual quantity of the individual products
sold during the year, with the aggregate cost of the product group concerned taken as the basis.
Provisions are determined by groups of products and duration of the warranty period.
Warranty provisions are reversed upon the expiry of the underlying warranty period and credited to income for
the year in which the warranty expires. They are netted off with correspondin expenses in the relevant period.
Contingent liabilities
Contingent liabilities are not recognized in the financial statements. They are disclosed in the notes, unless
the possibility of an outflow of resources embodying economic benefits is remote.
No contingent assets is recognised in the financial statements. They are disclosed in the notes when the
inflow of economic benefits becomes probable.

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Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
114 M SAN GRUPA ANNUAL REPORT 2023
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are
assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to
the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs eligible for capitalisation. All other borrowing costs are
recognised in profit or loss in the period in which they are incurred.
Events after the reporting date
Post-year-end events that provide additional information about the Group’s and the Company’s position at
the financial statements date (adjusting events) are reflected in the financial statements. Post-year-end events
that are not adjusting events are disclosed in the notes when material.
Accounting judgements and estimates
The estimates and associated assumptions are based on past experience and other factors that are
considered to be relevant. Actual results may differ from those estimates. The estimates and underlying
assumptions are continually reviewed. Changes in accounting estimates are recognised in the period in which
the estimate is revised if the revision affects only that period or in the period of revision and future periods if
the revision affects both current and future periods.
The key areas of estimation in applying the Group's and the Company’s accounting policies that had a most
significant impact on the amounts recognized in the financial statements were as follows:
(a) Useful life of property, plant and equipment and of intangible assets
As described in the accounting policies above, the Group and the Company review the estimated useful lives
of their property, plant and equipment as well as of intangible assets at the each reporting date. Property,
plant and equipment, and intangible assets are recognised initially at cost, less accumulated depreciation and
amortisation, respectively.

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Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 115
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Accounting judgements and estimates(continued)
(b) Expected credit losses
In assessing expected credit losses, the Group considers reasonable and corroborating information that is
relevant and available. This includes quantitative and qualitative information and analysis, based on the
Group's historical experience and an assessment of creditworthiness, including information relating to the
future. The value adjustment of receivables which are at risk in terms of collection certainty is debited to the
profit and loss in the current year.
(c) Provision for warranty risk
Provisions for estimated costs of guarantee itself recognized as a provision in the period when the sales
made. The assessment reflects historical trends in the costs of warranty.
(d) Assessment of Goodwill impairment
Goodwill is tested annually for impairment in accordance with the accounting policy. The recoverable amounts
of cash generating units are determined based on the calculated value in use. These calculations require the
use of estimates (Note 19).
(e) Recoverability of investments in subsidiaries and associates
The Company annually assesses the recoverability of investments through the test of value of net assets of
subsidiaries, ie the value of the share of associated companies increased by the share in the result of
associated companies calculated according to the equity method.
(f) Determination of achieving of control over subsidiaries
The Company evaluates the achievment of control over a subsidiary based on the following elements of control:
power of disposal, variable returns and the relationship between power of disposal and variable returns.
Power of disposal derives from voting rights based on ownership instruments, the right to appoint or
revoke the entity's key managers who are capable of conducting relevant affairs, the right to direct
the entity to conclude transactions in favor of investors or veto changes to such transactions, and the
ability to conduct relevant affairs.
Achieving variable returns in a affiliated company depends on the right to receive returns (dividends,
share value changes, other payments of economic benefit) depending on the success of its business.
The connection between the power of disposal and yield – control in relation to the dependent
company results from the ability to apply the power of disposal in such a way that the Company
affects its yield (note 48).

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Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
116 M SAN GRUPA ANNUAL REPORT 2023
4. SEGMENT INFORMATION
As of 31 December 2023, the reporting segments of the Group consisted of several business segments by
geographic area: Croatia, Bosnia and Herzegovina, Serbia, Montenegro, North Macedonia, Slovenia and
other countries. Business segments are reported in accordance with internal reporting to the executive
decision maker – the Company's Management Board, which is responsible for resource allocation and
performance evaluation of business segments.
The following is an analysis of the Group's income and results by geographic segment. The displayed sales
revenues refer to revenues generated by sales to external customers, revenues generated by sales within
segments and other business revenues.
The revenues and expenses shown at the operating segment level represent total revenues/expenses
generated from relations with third parties, but also with subsidiaries from other operating segments. Such
presentation of income and expenses is eliminated in the "Eliminations/Corrections" line.
Revenues and operating results by segment
2023 Croatia
Bosnia and
Herzegovina
Serbia Montenegro
North
Macedonia
Slovenia Total
Eliminations
/
Corrections
Total
Sales 353,221 40,802 83,950 18,341 29,055 35,552 560,921 (92,958) 467,963
Cost of goods sold (304,244) (34,488) (75,743) (15,857) (24,834) (31,787) (486,953) 84,259 (402,694)
Changes in
inventory
(204) - - - - - (204) 496 292
Other operating
income
1,668 111 329 23 138 35 2,304 1,405 3,709
Other operating
expenses
(46,702) (6,140) (7,770) (1,508) (2,967) (3,157) (68,244) 7,228 (61,016)
Profit from
operations
3,739 285 766 999 1,392 643 7,824 430 8,254
Net finance
expenses
(2,906) (107) (143) (86) (86) (136) (3,464) 469 (2,995)
Profit before taxes 833 178 623 913 1,306 507 4,360 899 5,259
2022 Croatia
Bosnia and
Herzegovina
Serbia Montenegro
North
Macedonia
Slovenia Total
Eliminations
/
Corrections
Total
Sales 342,706 48,049 94,305 15,825 24,381 5,081 530,347 (100,536) 429,811
Cost of goods sold (297,215) (38,839) (85,756) (13,945) (21,057) (4,137) (460,949) 92,962 (367,987)
Changes in
inventory
6 959 - - - - 964 14 978
Other operating
income
1,329 699 502 21 162 17 2,730 (273) 2,458
Other operating
expenses
(43,516) (9,507) (7,871) (1,228) (2,653) (504) (65,279) 6,850 (58,429)
Profit from
operations
3,311 1,360 1,181 673 833 456 7,814 (983) 6,830
Net finance
expenses
(3,389) (347) (469) (150) (170) (19) (4,544) (29) (4,574)
Profit before taxes (78) 1,014 711 523 663 437 3,269 (1,012) 2,257


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Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 117
4. SEGMENT INFORMATION (CONTINUED)
Segment assets and liabilities
2023 Croatia
Bosnia and
Herzegovina
Serbia Montenegro
North
Macedonia
Slovenia Total
Eliminations /
Corrections
Total
Tangible and
intangible
assets
4,725 306 157 278 96 379 5,941 10,819 16,760
Other non
-
current assets
28,502 10,111 202 1 24 30 38,870 (21,185) 17,685
Current assets 99,403 11,903 23,096 7,628 8,614 10,838 161,482 (8,651) 152,831
Total assets 132,630 22,320 23,455 7,907 8,734 11,247 206,293 (19,017) 187,276
Long
-
term
liabilities
23,708 99 565 8 - 122 24,502 313 24,815
Short
-
term
liabilities
91,185 8,192 11,656 3,614 1,715 9,504 125,866 (8,661) 117,205
Total liabilities 114,893 8,291 12,221 3,622 1,715 9,626 150,368 (8,348) 142,020
2022 Croatia
Bosnia and
Herzegovina
Serbia Montenegro
North
Macedonia
Slovenia Total
Eliminations /
Corrections
Total
Tangible and
intangible
assets
5,035 292 130 330 93 603 6,483 7,667 14,150
Other
non
-
current assets
26,525 10,112 52 1 26 - 36,716 (19,061) 17,655
Current assets 88,169 13,215 22,546 4,224 7,865 7,700 143,719 (9,391) 134,328
Total assets 119,729 23,619 22,728 4,555 7,984 8,303 186,918 (20,785) 166,133
Long
-
term
liabilities
25,327 156 823 69 - 371 26,746 - 26,746
Short
-
term
liabilities
77,441 9,582 11,312 983 2,126 6,704 108,148 (9,382) 98,766
Total liabilities 102,768 9,738 12,135 1,052 2,126 7,075 134,894 (9,382) 125,512


Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
118 M SAN GRUPA ANNUAL REPORT 2023
5. SALES INCOME
GROUP
COMPANY
2023
2022
2023
2022
Domestic sales of goods 384,601
347,912
199,566
185,264
Foreign sales of goods 62,066
62,711
102,093
110,720
Income from sale of service 18,116
14,073
9,640
4,306
Income from sales of spare parts 6,022
6,826
419
497
Income from sale of licences
6,003
3,365
2,860
2,130
Re-export sales 5,170
2,914
33,808
33,480
Other 383
3,760
-
-
Allowances and discounts provided to customers (14,398)
(11,750)
(13,229)
(11,750)
Total 467,963
429,811
335,157
324,647
The foreign market for the Company includes all markets except the Republic of Croatia, while for the Group the
foreign market includes all markets except the Republic of Croatia, the Republic of Serbia, Bosnia and
Herzegovina, the Republic of Montenegro, Republic of Slovenia and the Republic of Northern Macedonia.
Reexport implies direct export of goods to foreign markets in such a way that the goods were not physically in the
warehouse of the Company or the Group.
Overview of gross sales by countries in which it was realized:
GROUP
COMPANY
2023
2022
2023
2022
Croatia 203,217
166,012
199,192
186,314
Serbia 82,011
103,597
39,056
48,056
Slovenia 41,243
13,387
4,777
7,656
Bosnia and Herzegovina 39,017
46,468
20,337
21,359
North Macedonia 21,644
33,872
13,901
14,616
Montenegro 18,854
16,507
9,590
8,947
Kosovo 10,138
7,872
6,948
6,998
Poland 7,019
6,276
6,999
6,222
Germany 6,488
7,378
6,484
6,700
Finland 6,263
3,004
6,263
3,004
Slovakia 5,071
4,860
5,066
4,857
Singapur 5,004
5,037
964
620
Cezch Republic 4,873
5,790
4,525
5,541
Austria
3,649
3,245
1,156
596
Romania 3,257
4,316
3,257
4,316
Other 24,613
13,940
19,871
10,595
Total
482,361
441,561
348,386
336,397


Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 119
6. OTHER OPERATING INCOME
GROUP
COMPANY
2023
2022
2023
2022
Badwill
1,560
-
-
-
Income from free receipts 864
861
746
761
Income from reinvoicing 250
244
151
180
Profit from sale of fixed assets 208
255
3
24
Income from elimination of expected credil loss 133
280
69
40
Income from long-term provision 113
45
88
-
Income from incentives and subsidies 99
121
-
-
Receipts in-kind 86
52
77
46
Inventory surpluses 24
30
17
17
Income from the own use of products -
336
-
-
Other 372
234
98
90
Total 3,709
2,458
1,249
1,158
The Group recognized gain from bargain purchase in the amount of EUR 1,560 thousand (note 19) based on the
Purchase Price Allocation (PPA), of the acquired company Alterna distribucija d.o.o.

7. COST OF RAW MATERIAL AND SUPPLIES
GROUP
COMPANY
2023
2022
2023
2022
Cost of spare parts 3,082
2,595
-
-
Basic and auxiliary materials, and office supplies 2,775
2,961
2,439
1,107
Servicing, replacement and repair costs under warranty 1,335
1,169
530
514
Energy and fuels for freight and personal vehicles 1,073
1,852
196
177
Small inventory, packaging and tires 465
554
106
141
Other 25
503
-
-
Total 8,755
9,634
3,271
1,939


Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
120 M SAN GRUPA ANNUAL REPORT 2023
8. COST OF GOODS SOLD
GROUP
COMPANY
2023
2022
2023
2022
Cost of goods sold 429,207
388,563
322,889
310,619
Intellectual property use fee (license) 7,317
5,400
3,217
2,222
Ullage, spillage, breakage 985
763
739
641
Other cost of goods sold 62
276
-
-
Warranty extansion costs 23
250
7
253
Excessive inventories shortage 14
8
-
-
Cost of equipment for resale -
1,044
-
941
Allowances and discounts provided by suppliers (34,914)
(28,317)
(26,737)
(22,370)
Total 402,694
367,987
300,115
292,306
In addition to selling computers and laptops, the Group and the Company also sell licenses – ready-made office
applications or platforms for development, management and processing and more advanced analytics.

9. COST OF SERVICES
GROUP
COMPANY
2023
2022
2023
2022
Business premise and equipment rental costs
4,533
4,135
1,214
1,166
Costs of Ured za podršku d.o.o. and bookkeeping
services
3,825
3,734
2,882
2,804
Telephone, shipping and
transportation costs
3,770
3,307
4,806
4,568
Marketing, sponsorships and fairs
2,918
3,047
1,663
1,842
Utilities
1,683
1,589
1,208
1,203
Maintenance and repairs
1,175
1,382
570
534
Representation
948
760
326
202
Intellectual services
760
631
390
295
Income from quality control and attestation of goods
658
672
657
670
Outsourced repair of faulty goods under warranty period
495
363
830
815
Students and youth employees service costs
296
270
87
79
Costs of storage and
palletizing of goods
-
-
1,175
1,093
Other
2,177
1,645
853
932
Total
23,238
21,535
16,661
16,203
The Group has a well-developed logistics network in the Republic of Croatia and the Adria region, with the aim of
ensuring fast and quality delivery of goods to partners. Securing its own regional logistics network performed by
the subsidiary M SAN Logistika d.o.o. Zagreb provides the Company and the Group with one of the key
comparative advantages in the distribution of consumer electronics, computers and computer programs.


Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 121
10. STAFF COSTS
GROUP
COMPANY
2023
2022
2023
2022
Net salaries 12,716
11,066
4,922
4,215
Taxes, surtaxes and contributions from salaries 5,274
4,229
2,386
1,806
Contributions on salaries 2,566
2,231
1,008
857
Total 20,556
17,526
8,316
6,878
The Group had an average of 932 employees in 2023 (2022: 930 employees). The Company had an average of
281 employees in 2023 (2022: 258 employees).

11. DEPRECIATION AND AMORTIZATION
GROUP
COMPANY
2023
2022
2023
2022
Amortization 1,606
1,035
1,089
985
Depreciation 672
1,160
273
535
Depreciation of the right of use asset
460
391
34
34
Goodwill impairment -
1,089
-
-
Total 2,738
3,675
1,396
1,554

12. OTHER EXPENSES
GROUP
COMPANY
2023
2022
2023
2022
Insurance premiums for equipment, vehicles and
inventories
974
1,006
502
464
Severance costs, christmas allowance, children's gifts,
awards
568
436
258
189
Per diems and other business travel costs 491
340
222
129
Travel expenses 470
473
161
150
Bonuses for achieved results
440
1,123
96
609
Professional training and literature 382
253
322
234
Bank and payment operation charges 346
360
112
162
Other employee costs 316
82
-
-
Forest levies, other contributions and membership fees 191
184
111
109
License costs 126
132
-
-
Other 332
424
133
131
Total 4,636
4,813
1,917
2,177


Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
122 M SAN GRUPA ANNUAL REPORT 2023
13. IMPAIRMENT ALLOWANCE
GROUP
COMPANY
2023
2022
2023
2022
Impairment allowance of trade receivables (ECL) 279
128
84
69
Impairment allowance of Inventories -
4
-
-
Other 3
5
-
-
Total 282
137
84
69

13.1 PROVISIONS FOR RISKS
GROUP
COMPANY
2023
2022
2023
2022
Provisions for warranty risks and refunds 9
427
9
428
Provisions for termination benefits -
18
-
-
Total long
-
term risks provisions
9
445
9
428
Reserves for accruals unused vacation days 114
28
57
15
Short-term provisions for bonuses 24
444
-
248
Total short
-
term risks provisions
138
472
57
263
Total
provisions
147
917
66
691

14. OTHER OPERATING EXPENSES
GROUP
COMPANY
2023
2022
2023
2022
Fines 503
3
-
1
Written-off trade receivables 59
25
44
1
Donations 29
89
27
86
Loss on disposal of tangible asset -
5
-
-
Other 73
71
15
31
Total 664
193
86
119


Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 123
15.1 FINANCIAL INCOME
GROUP
COMPANY
2023
2022
2023
2022
Foreign exchange gains 1,756
2,571
1,825
3,355
Interest income 167
166
101
137
Other 28
11
28
2
Total 1,951
2,748
1,954
3,494

15.2 FINANCIAL EXPENSES
GROUP
COMPANY
2023
2022
2023
2022
Interest expense 2,537
1,795
2,048
1,427
Foreign exchange losses 1,782
4,640
1,942
4,801
Factoring fees
317
206
172
106
Bank guarantees fees 250
330
190
288
Losses from investments in stocks, shares and bonds and other papers -
-
95
-
Imapirment of financial assets -
-
308
267
Other financial expenses 84
38
38
10
Total 4,970
7,009
4,793
6,899

16. SHARES IN THE RESULT OF THE ASSOCIATES
GROUP
COMPANY
2023
2022
2023
2022
Income from profit attribution from associates 24
-
-
-
Expenses from loss attributions from associates -
(312)
-
-
Total 24
(312)
-
-
The following is a summary of the attribution of results by individual associates:
GROUP
2023
2022
E Kupi 20
(287)
EKO Bosanska Posavina 4
(25)
Total 24
(312)


Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
124 M SAN GRUPA ANNUAL REPORT 2023
17. INCOME TAX
Corporate income tax in Croatia is determined by applying the rate of 18% (Serbia: 15%, Montenegro: 9%,
Bosnia and Herzegovina: 10%, Slovenia 19% and North Macedonia: 10%) to taxable profit for the year.
GROUP
COMPANY
2023
2022
2023
2022
Current tax 648
593
52
119
Deferred tax -
(18)
19
-
Income tax expense 648
575
71
119
Current tax
GROUP
COMPANY
2023
2022
2023
2022
Accounting profit before tax 6,133
2,257
1,436
471
Income tax 18% 1,104
406
258
85
Tax effect of lower tax rates (472)
(39)
-
-
Tax effect of permanent deductiable expenses 413
398
168
171
Tax effect of premanent deductiable income (66)
(38)
(50)
(37)
Income tax expense 979
728
377
219
Withholding tax paid that could not be used 52
119
52
119
Utilisation of tax loss (382)
(254)
(377)
(219)
Net tax expense 648
593
52
119
Deffered tax assets
GROUP
COMPANY
2023
2022
2023
2022
Balance at 1 January 24
25
19
19
Recognized in profit or loss account (17)
(1)
(19)
-
Balance at 31 December 7
24
-
19
Deffered tax liabilities
GROUP
COMPANY
2023
2022
2023
2022
Balance at 1 January -
18
-
-
Recognized in profit or loss account 824
(18)
-
-
Balance at 31 December 824
-
-
-


Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 125
17. INCOME TAX (CONTINUED)
During the preparation of Purchase Price Allocation (PPA) in June 2023 related to the acquisition of the
company Alterna distribucija in November 2022, there was an increase in the fair value of intangible assets,
which resulted in the recognition of a deferred tax liability in accordance with the requirements of the IAS 12.
At the same time, the Group recognized EUR 824 thousand in deferred tax liabilities which will be released
over the useful life of the identifiable asset, and for the purpose of harmonizing the consolidated current cost
of income tax.
Effective tax rate in 2023 was 15.9% (2022: 25.5%).
Gross tax losses in the amount of EUR 4.068 thousand for the Group are available to reduce future taxable
profits at the end of 2023. Tax losses cannot be transferred and used within group members. The Group did
not recognize deferred tax assets based on tax losses carried forward, given that it is uncertain when
individual companies within the Group will achieve sufficient future taxable profit on the basis of which such
tax assets could be used. On the next reporting date, the Group and the Company will reassess the
assumptions for the recognition of deferred tax assets.
Table of transferred tax losses
GROUP
COMPANY
2023
2022
2023
2022
Up to 1 year 1,544
1,435
1,544
1,401
Up to 2 year 1,481
2,004
1,481
1,544
Up to 3 year 735
1,969
735
1,481
Up to 4 year 274
824
206
735
Up to 5 year 34
734
-
206
Total tax loss available for transfer 4,068
6,966
3,966
5,367
The Company and the Group acquired the largest part of the transferred losses through the merger of the
company M SAN Ulaganja with the Company. The Company and the Group have not determined deferred
tax assets because there is no estimate of how many losses will be able to be used in the future period.
In accordance with local tax regulations, the tax authorities may at any time inspect the Company’s and the
Group’s books and records within the period defined by local tax regulation, and may impose additional tax
assessments and penalties.


Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
126 M SAN GRUPA ANNUAL REPORT 2023
18. INTANGIBLE ASSETS
GROUP Software
Development
expenses
Trade-
mark
Customer
relationships
Intangible
assets
under
construction
Total
COST
At 1 January 2022
6,541
27
1
53
-
1,919
8,784
Additions
-
-
-
-
315
315
Transfer from assets under
construction
644
-
26
-
(690)
(20)
Acquisition of the
subsidiary
(note 48)
15
-
-
-
100
116
At 31 December 2022
7,200
271
79
-
1,644
9,19
4
Additions
-
-
-
5,084
140
5,224
Transfer from assets under
construction
130
51
3
-
(181)
3
Acquisition of the
subsidiary
(note 48)
53
-
-
-
51
104
At 31 December 2023
7,383
32
2
82
5,084
1,654
14,52
5
ACCUMULATED
AMORTIZATION
At 1 January 2022
4,065
271
39
-
-
4,375
Charge for the year
1,029
-
6
-
-
1,03
5
Acquisition of the subsidiary
(note 48)
4
-
-
-
-
4
At 31 December 2022
5,098
271
46
-
-
5,41
4
Charge for the year
1,088
-
10
508
-
1,606
Acquisition of the subsidiary
(note 48)
53
-
-
-
-
53
At 31 December 2023
6,239
271
56
508
-
7,07
3
NET BOOK VALUE
At 31 December 2023
1,144
5
1
2
7
4,576
1,654
7,452
At 31 December 2022
2,102
-
33
-
1,644
3,780
When preparing the Purchase Price Allocation (PPA) in June 2023 related to the acquisition of the company
Alterna distribucija in November 2022 (note 48), the Group identified relationships with customers as the key
intangible asset of the acquired company and made an assessment of their value, using income approach,
and MEE (Multi Excess Earnigns) method respectively.


Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 127
18. INTANGIBLE ASSETS (CONTINUED)
COMPANY Software
Development
expenses
Trade-
mark
Intangible
assets under
construction
Total
COST
At 1 January 2022 5,503
264
53
1,592
7,412
Additions -
-
-
292
292
Transfer from assets under
construction
253
-
26
(279)
-
Merger of a subsidiary (note 48) 1,206
-
-
-
1,206
At 31 December 2022 6,962
264
79
1,605
8,910
Additions -
-
-
261
261
Transfer from assets under
construction
238
-
3
(241)
-
Na dan 31 December 2023 7,200
264
82
1,625
9,171
ACCUMULATED AMORTIZATION
At 1 January 2022 3,028
264
40
-
3,332
Charge for the year 978
-
7
-
985
Merger of a subsidiary (note 48) 960
-
-
-
960
At 31 December 2022 4,966
264
47
-
5,277
Charge for the year 1,078
-
11
-
1,089
At 31 December 2023 6,044
264
58
-
6,366
NET BOOK VALUE
At 31 December 2023 1,156
-
24
1,625
2,805
At 31 December 2022 1,996
-
32
1,605
3,633


Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
128 M SAN GRUPA ANNUAL REPORT 2023
19. GOODWILL
GROUP
December 31 2023
December 31 2022
Cost
5,377
7,688
5,377
7,688
2023
2022
Cost
Oppening balance 7,688
5,898
Sale of subsididary 567
2,878
Purchase price allocation when acquiring 100% share (2,878)
-
Effect of exchange differences -
(1,088)
Closing balance 5,377
7,688
The recoverable amount of cash-generating units is determined based on a value in use calculation. These
calculations use cash flow projections based on financial plans approved by the Group's Management Board
and cover a period of five years.
For the purposes of impairment test, goodwill has been allocated to the following cash-generating units:
December 31 2023
December 31 2022
KIM TEC BG 3,883
3,883
Pakom Kompani d.o.o. 891
891
MR SERVIS 36
36
Alterna -
2,878
Data Link
567
-
Total 5,377
7,688
During November 2022, M SAN Grupa acquired the subsidiary Alterna distribucija (note 48). On December
31, 2022 the Group has not yet made the Purchase Price Allocation (PPA), and the amount of goodwill is
recognized as the difference between the expected purchase price and the acquired net value of the asset
on the date of acquisition. The Purchase Price Allocation was made during 2023, whereby the estimated fair
value of the acquired net assets exceeded the expected value of the purchase price. This resulted in the
derecognition of the initially recognized goodwill and the recognition of gain from a bargain purchase in the
amount of EUR 1,560 thousand (note 6).
In July 2023, the Company acquired a 100% business share in the company Data link d.o.o. based on the
contract on the purchase of business shares, and the fair value of the compensation in the amount of EUR
2,277 thousand for the acquisition of 100% ownership share was determined. The assessment of the fair
value of the Company's assets and liabilities, as an integral part of the distribution of the purchase price,
determined the fair value of the acquired net assets (100% of the share capital) in the amount of EUR 1,709
thousand. Goodwill resulting from the acquisition is defined as the difference between the fair value of
consideration and the fair value of the net assets of the acquired company in the amount of EUR 567
thousand.


Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 129
19. GOODWILL (CONTINUED)
The calculations of the value in use of goodwill are based on the following assumptions of the discount rates
after tax:
Cash generating units
2023
2022
KIM TEC BG
13.1%
13.3%
MR SERVIS
10.2%
11.1%
Pakom Kompani d.o.o.
15.4%
14.6%
Data Link
10.2%
-
The Group performs an impairment test annually to assess whether the recoverable amount of goodwill shows
a potential impairment of the carrying amount. The calculation of the recoverable amount of goodwill is based
on a five-year plan of revenues that the Companies generate in local and foreign markets developed by the
Group, taking into account corporate and marketing strategies, and relevant market trends.
The calculation of the recoverable amount implies terminal growth rates after a projection period of five years
in range of 2.0% - 3.0% (2022 2.0% - 3.0%), depending on the industry in which the Company operates. The
cash flows arising from these plans are discounted using a discount rate that reflects the return on the
cost of capital for the local market.
Value in use calculations for cash-generating units are most sensitive under the following assumptions:
Revenues and Gross Margins – Revenues and gross margins are based on average values achieved in the
last few years before the start of the business plan period. The same are increased during the business plan
period for the expected customer retention rate, business expansion, synergies, and efficiency improvements.
Average revenue growth rates in the business plan period range from 3.1% to 17.2% (2022: 3.1% to 7.0%).
Discount rates represent the current assessment of market risks specific to cash-generating units. It is a
benchmark used by the Group to assess business performance and to evaluate future investment proposals.
The sensitivity analysis of the key assumptions used in the goodwill impairment test shows that an increase
in the discount rate by 1 percentage point, with other assumptions unchanged, would not lead to an
impairment of goodwill. Also, the value of goodwill would remain unchanged with a decrease in the terminal
growth rate by 1 percentage point, with other assumptions unchanged, as well as with a decrease in expected
free cash flow by 5 percentage points, with other assumptions unchanged.


Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
130 M SAN GRUPA ANNUAL REPORT 2023
20. PROPERTY, PLANT AND EQUIPMENT
As of December 31 2023, the current value of the real estate on which the bank's mortgage was registered as loan insurance is EUR 266 thousand (2022: EUR 0
thousand). The mortgage on the said property amounts to EUR 912 thousand (2022: EUR 0 thousand), while the amount owed on the said mortgages amounts to EUR
248 thousand (EUR 0 thousand).
GROUP
Land and
buildings
Plant and
equipment
Vehicles
Office and
other
equipment
Other
assets
Right of
use
assets
Assets under
construction
Total
COST
At 1 January 2022 21,613
11,079
214
1,816
481
3,528
982
39,713
Reclassification -
-
1,445
-
-
(1,445)
-
-
Additions -
-
-
-
-
2
3,461
3,463
Transfer from assets under construction 2
861
173
163
70
793
(2,042)
20
Loss of control of the affiliated company (note 48) (12,841)
(3,569)
-
-
(320)
(1,483)
(2,190)
(20,403)
Acquisition of the subsidiary (note 48) -
154
17
9
-
893
-
1,073
Separation of real estate segment to M SAN
Nekretnine segment (note 48)
(8,831)
(4)
-
(5)
-
-
(162)
(9,002)
Disposals
-
(1,918)
(196)
(2)
-
(14)
-
(2,130)
Exchange differences 57
12
1
2
-
3
2
77
At 31 December 2022 -
6,615
1,654
1,983
231
2,277
51
12,811
Additions 642
334
25
-
-
241
805
2,047
Transfer from assets under construction -
541
119
60
10
68
(801)
(3)
Acquisition of the subsidiary (note 48) 585
1,755
28
192
-
-
38
2,598
Disposals (88)
(95)
(76)
(6)
-
(751)
-
(1,016)
At 31 December 2023 1,139
9,150
1,750
2,229
241
1,835
93
16,437


Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 131
20. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
GROUP
Land and
buildings
Plant and
equipment
Vehicles
Office and
other
equipment
Other
assets
Right of
use
assets
Assets under
construction
Total
ACCUMULATED DEPRECIATION
At 1 January 2022 1,958
8,342
32
1,582
182
1,887
-
13,983
Reclassification -
-
1,419
-
-
(1,419)
-
-
Depreciation for the year 81
896
85
69
29
391
-
1,551
Disposals
-
(1,344)
(149)
(5)
-
(2)
-
(1,500)
Acquisition of the subsidiary (note 48) -
96
13
6
-
459
-
574
Loss of control of the affiliated company (note 48) (10)
(2,051)
-
-
(14)
(386)
-
(2,461)
Separ
ation of real estate segment to M SAN Nekretnine
segment (note 48)
(2,036)
-
-
-
-
-
-
(2,036)
Exchange differences 7
8
-
2
-
1
-
18
At 31 December 2022 -
5,947
1,400
1,654
197
931
-
10,129
Depreciation for the year 22
466
93
81
10
460
-
1,132
Disposals (89)
(85)
(37)
(6)
-
(429)
-
(646)
Acquisition of the subsidiary (note 48) 309
1,409
20
153
-
-
-
1,891
At 31 December 2023 242
7,737
1,476
1,882
207
962
-
12,506
NET
BOOK VALUE
At 31 December 2023 897
1,413
274
347
34
873
93
3,931
At 31 December 2022 -
668
254
329
34
1,346
51
2,682


Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
132 M SAN GRUPA ANNUAL REPORT 2023
20. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
COMPANY
Land and
buildings
Plant and
equipment
Vehicles
Right
of use
assets
Office and
other
equipment
Leasehold
improvements
Assets
under
construction
Total
COST
At 1 January 2022 1,530
5,708
-
800
979
63
94
9,174
Reclassification -
-
655
(655)
-
-
-
-
Additions -
-
-
-
-
-
258
258
Transfer from assets under construction 3
287
7
7
43
5
(352)
-
Merger of a subsidiary (note 48) -
39
-
-
1
-
-
40
Separ
ation of real estate segment to M SAN Nekretnine segment
(note 48)
(1,533)
-
-
-
-
-
-
(1,533)
Disposals -
(937)
(78)
-
-
-
-
(1,015)
At 31 December 2022 -
5,097
584
152
1,023
68
-
6,924
Additions -
-
-
-
-
-
401
401
Transfer from assets under construction -
352
41
-
8
-
(401)
-
Disposals -
(13)
(38)
(10)
-
-
-
(61)
At 31 December 2023 -
5,436
587
142
1,031
68
-
7,264
As of December 31, 2023, the Company has no tangible assets on which a bank mortgage was registered as loan security (December 31, 2022, EUR 0 thousand).


Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 133
20. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
COMPANY
Land and
buildings
Plant and
equipment
Vehicles
Right of
use
assets
Office and
other
equipment
Leasehold
improvements
Assets under
construction
Total
ACCUMULATED DEPRECIATION
At 1 January 2022 -
4,688
-
670
814
50
-
6,222
Reclassification
-
-
634
(634)
-
-
-
-
Depreciation for the year
-
476
9
34
38
12
-
569
Disposals
-
(409)
(67)
-
-
-
-
(476)
Merger of a subsidiary (note 48)
-
35
-
-
1
-
-
36
At 31 December 2022 -
4,790
576
70
853
62
-
6,351
Depreciation for the year
-
224
11
34
37
1
-
307
Disposals
-
(13)
(22)
(4)
-
-
-
(39)
At 31 December 2023 -
5,001
565
100
890
63
-
6,619
NET BOOK VALUE
At 31 December 2023 -
435
22
42
141
5
-
645
At 31 December 2022 -
307
8
82
170
6
-
573


Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
134 M SAN GRUPA ANNUAL REPORT 2022
21. FINANCIAL ASSETS
GROUP
COMPANY
December 31
2023
December 31
2022
December 31
2023
December 31
2022
Investments in subsidiaries -
-
20,532
18,553
Investments in associates 15,182
15,158
5,508
5,508
Other financial assets
4
4
-
-
15,186
15,162
26,040
24,061
21.1. INVESTMENTS IN SUBSIDIARIES
Set out in the table below are the Company’s subsidiaries, together with the Company’s ownership interests:
Name of subsidiary Principal activity
Country of
incorporation
and business
Ownership share and
share in the voting
power
Amount
31.12.
2023.
31.12.
2022.
31.12.
2023.
31.12.
2022.
%
%
Kim Tec Vitez d.o.o. DISTRIBUTION
Bosnia and
Herzegovina
100
100
875
875
Kim Tec BG d.o.o. DISTRIBUTION Serbia 100
100
8,168
8,168
Kim Tec CG d.o.o. DISTRIBUTION Montenegro 100
100
1,553
1,553
Pakom Kompani
d.o.o.
DISTRIBUTION
North
Macedonia
100
100
2,360
2,360
M San Eko d.o.o.
COLLECTION AND
DISTRIBUTION OF
WASTE
Croatia 100
100
66
66
MR SERVIS d.o.o. MAINTAINANCE Croatia 60
60
1,528
1,528
M San Logistika
d.o.o.
LOGISTICS Croatia 100
100
3
3
Centar kompetencija
za zelenu energiju
d.o.o.
CONSULTING Croatia 100
100
5
100
Zelena Agenda 1.0
d.o.o.
CONSULTING Croatia -
100
-
133
Corvus MK IT Croatia 100
100
5
5
Alterna distribucija
d.o.o.
DISTRIBUTION Slovenia 100
100
3,691
3,762
Data Link d.o.o. PRODUCTION Croatia 100
-
2,278
-
20,532
18,553



Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 135
21. FINANCIAL ASSETS (CONTINUED)
21.1. INVESTMENTS IN SUBSIDIARIES (CONTINUED)
In November 2021, the Company founded the company Zelena Agenda 1.0 d.o.o. thereby acquiring a share in
ownership and voting rights in the amount of 100%. In March 2023, the Company sold its business share to
company Pamenta energija d.o.o. in the amount of the net book value of the share.
In July 2023, the Company acquired a business stake in the company Data link d.o.o. based on the contract on
the purchase of business shares, and the fair value of compensation in the amount of EUR 2,278 thousand for
the acquisition of 100% of the owner's capital was determined.
All business combinations are described in more detail in note 48.

21.2. INVESTMENTS IN ASSOCIATES
The table below contains an overview of investments in associated companies as of December 31, 2023 and
December 31, 2022:
GROUP
COMPANY
December 31
2023
December 31
2022
December 31
2023
December 31
2022
Shares in the company EKO
Bosanska
Posavina
9,562
9,558
-
-
Shares in the company E Kupi d.o.o. 5,620
5,600
5,508
5,508
15,182
15,158
5,508
5,508
Information about the Group's affiliated companies is given below:
Name of associate
Principal
activity
Country of
incorporation and
business
Ownership and share in the
voting rights
2023
2022
E Kupi d.o.o.
E
-
commerce
Croatia
24%
24%
EKO Bosanska Posavina
Agriculture
Bosnia and Herzegovina
60%
60%
Company E kupi d.o.o. was founded in 2010. In 2016, the company acquired a 24% stake in this associated
company.
The Group concluded that all companies represented or represent associated companies since the Group
does not have control over those companies in which the investment was made. Shares and shares of the
mentioned companies are not listed on active markets.



Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
136 M SAN GRUPA ANNUAL REPORT 2023
21. FINANCIAL ASSETS (CONTINUED)
21.2. INVESTMENTS IN ASSOCIATES (CONTINUED)
The following is a summary of the financial information relating to the associate E kupi d.o.o. and Eko
Bosanska Posavina d.o.o. for 2023:
E Kupi
Eko
Bosanska
Posavina
Total
Property, plant and equipment 186 20,313 20,499
Other assets 873 - 873
Inventories 7,170 1,466 8,636
Trade receivables 3,259 2,411 5,670
Cash and cash equivalents 1,467 10 1,477
Other current assets 938 501 1,439
Long-term liabilities - 2,267 2,267
Short-term liabilities 14,537 2,277 16,814
Net assets of associates 470 20,240 20,710
Group's share in the net assets of the associates 113 12,144 12,257
Total income 54,932 6,367 61,299
Total profit for the current year 80 7 87
Group's share in the profit of
the associates (note 16)
20
4
24
et

22. INVENTORIES
GROUP
COMPANY
December 31
2023
December 31
2022
December 31
2023
December 31
2022
Merchandise 32,829
41,392
15,876
20,810
Goods in the customs warehouse 7,356
12,121
6,745
11,881
Goods in transit 6,749
5,918
6,528
5,545
Other 2,251
2,072
1,134
1,460
Total 49,185
61,503
30,283
39,696

23. PREPAYMENTS
GROUP
COMPANY
December 31
2023
December 31
2022
December 31
2023
December 31
2022
Prepayments for services 2,836
1,411
2,491
1,301
Prepayments for goods 66
201
-
18
Total 2,902
1,612
2,491
1,319


Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 137
24. TRADE RECEIVABLES
GROUP
COMPANY
December 31
2023
December 31
2022
December 31
2023
December 31
2022
Domestic trade receivables 65,768
46,797
35,281
22,060
Foreign trade receivables 6,043
6,966
11,519
11,410
Impairment allowance on trade
receivables
(1,261)
(1,157)
(261)
(244)
Total 70,550
52,606
46,539
33,226
Movement in impairment allowance for doubtful accounts:
GROUP
COMPANY
2023
2022
2023
2022
At 1 January 1,157
1,346
244
228
Impairment allowance (Note 13) 279
116
84
69
Reversed on collection (16)
(14)
(4)
(13)
Write-off receivables (116)
(281)
(69)
(40)
Exchange differences (43)
(10)
6
-
At 31 December 1,261
1,157
261
244
Aging structure of trade receivables (net)
GROUP
COMPANY
December 31
2023
December 31
2022
December 31
2023
December 31
2022
Undue 57,753
42,424
34,413
23,897
Up to 60 days 10,801
7,009
8,230
7,306
61-90 days 953
469
3,264
345
91-120 days 162
854
400
712
121-365 days 834
1,818
20
944
More than 365 days 47
32
212
22
Total 70,550
52,606
46,539
33,226
The average receivables collection period in the Group in 2023 was 48 days (2022: 44 days), while in the
Company it was 44 days (2022: 36 days).


Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
138 M SAN GRUPA ANNUAL REPORT 2023
25. RECEIVABLES FROM THE STATE AND OTHER INSTITUTIONS
GROUP
COMPANY
December 31
2023
December 31
2022
December 31
2023
December 31
2022
VAT prepayments 520
560
40
17
Income tax advances 230
393
-
106
Receivables from CHIF* 99
58
16
7
Receivables for other
taxes, contributions and
membership fees
-
94
1
1
Other 22
26
2
1
Total 871
1,131
59
132
*Croatian Health Insurance Fund

26. GIVEN LOANS AND DEPOSITS
Long-term loans and deposits:
GROUP
COMPANY
December 31
2023
December 31
2022
December 31
2023
December 31
2022
Loans to corporate entities 2,429
2,429
2,429
2,429
Given deposits to unrelated
parties
39
23
-
-
Total 2,468
2,452
2,429
2,429
Original
currency
Amount
Due
date
December
31 2023
December
31 2022
Company
Loans to corporate entities
Related parties
Baks grupa d.o.o.
EUR
18.309
31.12.2025
2.429
2.429
Total
2.429
2.429


Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 139
26. GIVEN LOANS AND DEPOSITS (CONTINUED)
Short-term loans and deposits:
GROUP
COMPANY
December 31
2023
December 31
2022
December 31
2023
December 31
2022
Loans to corporate entities 1,415
327
609
609
Given deposits to unrelated
parties
300
310
300
300
Loans to individuals
4
17
4
17
Impairment of given domestic
loans
-
-
(560)
(265)
Total 1,719
654
353
661
Original
currency
Amount
Due date
December
31 2023
December
31 2022
Company
Loans to entities within group
M SAN EKO d.o.o. EUR
560
31.12.2024
560
525
Total
560
525
Loans to other entitites
Third parties
Castalia projekt d.o.o. EUR
477
31.12.2024
49
84
Total
49
84
Total short term loans to corporate entities - Company
609
609
Group
M SAN GRUPA d.o.o.
Third parties
Castalia projekt d.o.o. EUR
477
31.12.2023
49
84
Total
49
84
ALTERNA
Third parties EUR
1
31.12.2024
1
1
Total
1
1
KIM TEC BG d.o.o.
Ekupi BG d.o.o. RSD
100,000
01.12.2024
853
-
Kim tec BG Nekretnine RSD
30,000
30.06.2024
256
170
Total
1,109
170
KIM TEC BIH d.o.o.
Kim tec BiH Nekretnine KM
500
31.12.2024
256
72
Total
256
72
Total
short term loans to corporate entities
-
Group
1,415
327


Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
140 M SAN GRUPA ANNUAL REPORT 2023
26. GIVEN LOANS AND DEPOSITS (CONTINUED)
December
31 2023
December
31 2022
Loans to individuals
Company
Other individuals
4
17
Total
4
17
Group
Other individuals
4
17
Total
4
17
Total amount of loans to individuals – Group
4
17
Total amount of deposits to individuals – Company
300
300
Total amount of deposits to individuals – Group
300
310
Value adjustment – Company
(560)
(265)
TOTAL AMOUNT OF LOANS AND DEPOSITS – Company
353
661
TOTAL AMOUNT OF LOANS AND DEPOSITS – Group
1,719
654


Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 141
27. PREPAID EXPENSES AND ACCRUED INCOME
GROUP
COMPANY
December 31
2023
December 31
2022
December 31
2023
December 31
2022
Accrued income for subsequently approved
discounts
665
1,241
-
410
Prepaid expenses 508
282
34
6
Accured overdue revenues 7
5
-
-
Total 1,180
1,528
34
416

28. OTHER RECEIVABLES
GROUP
COMPANY
December 31
2023
December 31
2022
December 31
2023
December 31
2022
Receivables on acquired cession agreements 874
35
-
-
Receivables acquired by debt acquisition 860
36
-
-
Interest receivable 222
322
220
323
Receivables for spare parts within the warranty
period
179
222
-
-
Receivables for supplier complaints 97
77
96
77
Other receivables 177
76
11
22
Total 2,409
768
327
422
Interest receivables are presented as follows:
GROUP
COMPANY
December 31
2023
December 31
2022
December 31
2023
December 31
2022
Receivables for interests on loans 200
288
198
288
Receivables for contracted interests 22
35
22
35
Total 222
323
220
323

29. CASH AND CASH EQUIVALENTS
GROUP
COMPANY
December 31
2023
December 31
2022
December 31
2023
December 31
2022
Cash in banks 24,013
14,521
16,301
9,892
Petty cash 2
5
1
1
Total 24,015
14,526
16,302
9,893


Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
142 M SAN GRUPA ANNUAL REPORT 2023
30. SHARE CAPITAL
GROUP
COMPANY
December 31
2023
December 31
2022
December 31
2023
December 31
2022
Nominal value 14,493
14,493
14,493
14,493
Total 14,493
14,493
14,493
14,493
The share capital consists of 485,000 business shares, each business share in the nominal amount of HRK
200.00 (EUR 26.54), which are paid in full in cash and one business share in the nominal amount of HRK
12,197,700.00 (EUR 1,618,913) which was paid in full in rights.

31. RETAINED EARNINGS
GROUP
COMPANY
December 31
2023
December 31
2022
December 31
2023
December 31
2022
Retained
earnings
29,100
24,492
2,798
1,414
Total
29,100
24,492
2,798
1,414
Changes in retained earnings can be shown:
GROUP
COMPANY
Balance as of December 31 2022
24,49
2
1,414
Profit for the year
4,608
1,384
Balance as of December 31 2023 29,100
2,798


Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 143
32. MINORITY INTEREST
GROUP
COMPANY
December 31
2023
December 31
2022
December 31
2023
December 31
2022
Minority interest
66
63
-
-
Total
66
63
-
-
EKO
BOSANSKA
POSAVINA
MR SERVIS
KIM TEC
BIH EKO
TOTAL
At 1 January 2022
2,774
(40)
38
2,772
Capital increase (note 48)
718
-
-
718
Non-controlling interest increase (note 48)
4,461
-
-
4,461
Transfer of control in an affiliated company (note 48)
(8,111)
-
-
(8,111)
Total profit for the current year
151
68
(3)
216
Other comprehensive income
7
-
-
7
At 31 December 2022 -
28
35
63
At 1 January 2023
-
28
35
63
Total profit for the current year
5
(2)
3
At 31 December 2023 -
33
33
66

33. PROVISIONS
GROUP
COMPANY
December 31
2023
December 31
2022
December 31
2023
December 31
2022
Long
-
term provisions for risks within the
warranty period
799
808
642
632
Provisions for returns 165
166
148
148
Long
-
term provisions for bonuses and
severance pay
35
40
-
-
Total 999
1.014
790
780


Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
144 M SAN GRUPA ANNUAL REPORT 2023
33. PROVISIONS (CONTINUED)
Changes in provisions can be shown as:
GROUP
COMPANY
2023
2022
2023
2022
At 1 January 1,014
591
780
352
Increases 561
932
790
780
Decreases (591)
(532)
(780)
(352)
Exchange rate differences 15
23
-
-
At 31 December 999
1,014
790
780

34. LONG-TERM LOANS LIABILITIES
GROUP
COMPANY
December 31
2023
December 31
2022
December 31
2023
December 31
2022
Total loans from financial institutions 4,575
3,549
3,547
2,139
Less:
current portion of loans from financial
institutions
(1,221)
(1,040)
(816)
(435)
Total long
-
term loans from financial
institutions
3,354
2,509
2,731
1,704


Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 145
34. LONG-TERM LOANS LIABILITIES (CONTINUED)
GROUP
Financial institution
Original
currency
Amount
Due date
December
31 2023
December
31 2022
KIM TEC BEOGRAD d.o.o.
ProCredit Bank AD.
EUR
4,000
12.10.2026
754
993
Total
754
993
DATA LINK d.o.o.
ERSTE & STEIERMARKISCHE BANK d.d.
EUR
105
31.03.2029
68
-
Zagrebačka banka d.d.
EUR
70
31.12.2026
41
-
ERSTE & STEIERMARKISCHE BANK d.d.
EUR
252
31.12.2024
36
-
Zagrebačka banka d.d.
EUR
328
31.01.2024
6
-
Hamag Bicro
EUR
100
30.06.2026
62
-
Total
213
-
KIM TEC BIH d.o.o.
Intesa Sanpaolo Banka d.d.
EUR
2,500
28.02.2024
61
417
Total
61
417
Total loan liabilities from financial
institutions
-
Group
4,575
3,549
Less: short
-
term part of long
-
term
loans
-
Group
(1,221)
(1,040)
Total - Group:
3,354
2,509
COMPANY
Financial institution
Original
currency
Amount
Due date
December
31 2023
December
31 2022
MSAN GRUPA d.o.o.
ERSTE & STEIERMARKISCHE BANK d.d. EUR
2,175
20.12.2027
3,547
2,139
Total
3,547
2,139
More: the current part of the loan
obligation from financial institutions -
C
ompany
(816)
(435)
Total
2,731
1,704


Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
146 M SAN GRUPA ANNUAL REPORT 2023
35. LIABILITIES FOR RIGHT-OF-USE ASSETS
GRUPA
COMPANY
December 31
2023
December 31
2022
December 31
2023
December
31
2022
Current portion of long
-
term liabilities for
right
-
of
-
use asset
492
508
20
49
Long
-
term liabilities for right
-
of
-
use
assets
406
925
2
25
Total liabilities for right
-
of
-
use assets
898
1,433
22
74
The Group uses part of the leases of business and warehouse spaces and vehicles that do not meet the
recognition requirements in accordance with IFRS 16, and the stated cost is shown above as a short-term lease
cost (note 9).
Defining the lease period
The definition of the lease period is determined by the irrevocable lease period, taking into account the option
of extension and termination of the lease agreement, to which the lessee has the right only. In accordance
with the company's business policies and concluded contracts, the total rental period cannot be shorter than
1 year or longer than 10 years. The company regularly, and at least once a year, assesses whether the
economic circumstances related to the extension or termination of the lease contract have changed, whereby
it adjusts the original estimate of the lease period.
Contracts with variable installments
During the year ending December 31, 2023 and December 31, 2022, the Group did not pay rents with variable
installments.


Graphics
Notes to the consolidated and separate financial statements (continued) 
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023     147
 
36.  SHORT-TERM LOANS AND BORROWINGS FROM FINANCIAL INSTITUTIONS 
 
 
GROUP
 
COMPANY
 
December 31
 
2023
 
 
December 31
 
2022
 
 
December 31
 
2023
 
 
December 31
 
2022
 
 
 
 
 
 
 
 
 
Short-term bank loans  20,496
 
19,928
 
15,911
 
15,911
Obligations for loans  42
 
-
 
43
 
99
Total  20,538
 
19,928
 
15,954
 
16,010
 
 
 
 
 
 
 
 
Current part of long-term loan  1,221
 
1,040
 
816
 
435
Total  21,759
 
20,968
 
16,770
 
16,445
 
Short term loans liabilities
 
GROUP 
Financial institutions 
Original
currency
 
Amount
 
Due date
 
December
 
31 2023
 
 
December
 
31 2022
 
 
 
     
KIM TEC BIH d.o.o. 
 
 
 
 
 
 
 
 
 
UniCredit Bank Mostar d.d.  BAM
 
2,000
 
24.5.2024
 
1,022
 
1,022
Intesa Sanpaolo Banka d.d.  BAM
 
2,000
 
13.06.2024
 
1,023
 
1,023
NLB Tuzlanska banka  BAM
 
500
 
30.06.2024
 
256
 
256
Bosna Bank International d.d.  BAM
 
1,800
 
20.06.2024
 
920
 
920
Total
 
 
 
 
 
 
3,221
 
3,221
 
 
 
 
 
 
 
 
 
 
PAKOM KOMPANI d.o.o.
 
 
 
 
 
 
 
 
 
 
NLB Tutunska banka  MKD
 
36,000
 
20.01.2023
 
-
 
96
Total
 
 
 
 
 
 
 
-
 
96
 
 
 
 
 
 
 
 
 
 
DATA LINK d.o.o.
 
 
 
 
 
 
 
 
 
Erste banka d.d.
 
EUR
 
33
 
31.10.2024
 
33
 
-
Erste banka d.d.
 
EUR
 
35
 
31.05.2024
 
35
 
-
Zagrebačka banka d.d.
 
EUR
 
49
 
31.01.2024
 
48
 
-
Erste banka d.d.
 
EUR
 
20
 
31.10.2024
 
20
 
-
Erste banka d.d.
 
EUR
 
27
 
30.11.2024
 
27
 
-
T
otal
 
 
 
 
 
 
 
163
 
-
 
 
 
 
 
 
 
 
 
 
Alterna d.o.o.
 
 
 
 
 
 
 
 
 
Gorenjska banka d.d.
 
EUR
 
1,000
 
 
04.06.2024
 
 
1,000
 
-
Addiko Bank d.d.  EUR
 
700
 
 
03.05.2024
 
 
200
 
-
Total
 
 
 
 
 
 
 
1,200
 
-
 
 
 
 
 
 
 
 
 
 
KIM TEC BG d.o.o.
 
 
 
 
 
 
 
 
 
 
NLB Komercijalna banka   EUR
 
2,000
 
28.06.2023
 
-
 
700
Total
 
 
 
 
 
 
 
-
 
700
 
 
 
 
 
 
 
 
 
 
Total short-term borrowings
 
 
 
 
 
 
4,584
 
4,017
Plus: Current portion of loans from financial
 
institutions
 
           
1,221
 
1,040
Total current portion of long
-
term borrowings
 
and short
-
term loans
 
     
5,805
 
5,057
   

Graphics
Notes to the consolidated and separate financial statements (continued) 
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
148  M SAN GRUPA ANNUAL REPORT 2023 
 
36.  SHORT-TERM LOANS AND BORROWINGS FROM FINANCIAL INSTITUTIONS (CONTINUED)
 
 
COMPANY
 
 
 
 
 
 
 
 
 
Financial institutions 
Original
currency
 
Amount
 
Due date
 
31.12.
 
31.12.
2023  2022
 
 
 
 
 
 
 
 
 
 
Zagrebačka banka d.d.
 
EUR
 
 
6,000
 
 
24.05.2024
 
 
6,000
 
 
6,000
 
Nova hrvatska banka d.d.
 
EUR
 
 
5,000
 
 
31.03.2024
 
 
4,911
 
4,911
 
Erste banka d.d.
 
EUR
 
 
5,000
 
 
01.08.2024
 
 
5,000
 
5,000
Total
 
 
 
 
 
 
 
15,911
 
15,911
 
 
 
 
 
 
 
 
 
 
Plus: Current portion of loans from financial institutions
 
 
 
 
 
816
 
435
Total current portion of long-term borrowings and short-term loans
 
 
 
816
 
435
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities for borrowings
 
 
 
 
 
 
 
 
 
 
COMPANY
Original
currency
 
Amount
 
Due date
 
31.12.
 
31.12.
2023  2022
 
 
 
 
 
 
 
 
 
 
M SAN GRUPA d.o.o.
 
 
 
 
 
 
 
 
 
Liabilities for
loans from the company
-
 
Zelena
Agenda
 
EUR
 
 
100
 
 
31.12.2023
 
 
-
 
99
Liabilities for loans from the company
-
 
PP
Orahovica
 
 
 
 
 
 
 
 
 
 
 
 
43
 
-
Total
 
 
 
 
 
 
43
 
99
 
 
 
 
 
 
 
 
 
 
Total liabilities
-
 
Company
 
 
 
 
 
 
 
43
 
99
Total liabilities
-
 
Group
 
 
 
 
 
 
 
43
 
-
 
 
 
 
 
 
 
 
 
 
Total short-term credits and loans Company:
 
 
 
 
 
 
16,770
 
16,445
Total short-term credits and loans Group:
 
 
 
 
 
 
21,759
 
20,968
 
 
 
37.  LONG-TERM BOND LIABILITIES
 
GROUP
 
COMPANY
 
December 31
 
2023
 
 
December 31
 
2022
 
 
December 31
 
2023
 
 
December 31
 
2022
 
 
 
 
 
 
 
 
 
Long-term bond liabilities  21,235
 
23,890
 
21,235
 
23,890
Current portion of non-current Bond payables  (2,654)
 
(2,654)
 
(2,654)
 
(2,654)
Total  18,581
 
21,236
 
18,581
 
21,236
 
 
   

Graphics
Notes to the consolidated and separate financial statements (continued) 
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023     149
 
38.  OTHER LONG-TERM LIABILITIES  
 
 
 
GROUP
 
COMPANY
 
December 31
2023
 
 
December 31
2022
 
 
December 31
2023
 
 
December 31
2022
 
 
 
 
 
 
 
 
 
Long
-
term liabilities for the purchase of a
business share
 
627
 
1,046
 
627
 
1,046
Long-term liabilities to insurance companies  14
 
11
 
14
 
11
Other long-term liabilities  10
 
5
 
-
 
-
Total  651
 
1,062
 
641
 
1,057
 
 
 
39.  ADVANCES RECEIVED
 
 
 
GROUP
 
COMPANY
 
December 31
 
2023
 
 
December 31
 
 
2022
 
 
December 31
 
 
2023
 
 
December 31
 
2022
 
 
 
 
 
 
 
 
 
Advances received
-
 
domestic
customers
 
2,361
 
946
 
491
 
464
Advances received
-
 
foreign
customers
 
337
 
301
 
318
 
1,248
Total  2,698
 
1,247
 
809
 
1,712
 
 
 
 
40.  TRADE PAYABLES
 
 
GROUP
 
COMPANY
 
December 31
 
2023
 
 
December 31
 
2022
 
 
December 31
 
2023
 
 
December 31
 
2022
 
 
 
 
 
 
 
 
 
Foreign trade payables  52,159
 
41,560
 
41,906
 
31,571
Domestic trade payables  21,900 
 
20,197
 
16,296
 
15,348
Total  74,059 
 
61,757
 
58,202
 
46,919
 
 
 
 
 
 
   

Graphics
Notes to the consolidated and separate financial statements (continued) 
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
150  M SAN GRUPA ANNUAL REPORT 2023 
 
41.  TAXES, CONTRIBUTIONS AND OTHER SIMILAR DUTIES
 
 
 
GROUP
 
COMPANY 
 
December 31
2023
 
 
December 31
2022
 
 
December 31
2023
 
 
December 31
2022
 
 
 
 
 
 
 
 
 
VAT liabilities  4,250
 
3,072
 
3,560
 
2,510
Liabilities
for taxes and contributions from
and on salaries
 
665
 
614
 
284
 
272
Customs payable  573
 
207
 
25
 
33
Liabilities for memberships, contributions
and other taxes
 
29
 
70
 
7
 
31
VAT liabilities (Slovenia)  -
 
65
 
-
 
65
Total  5,517
 
4,028
 
3,876
 
2,911
 
 
 
42.  FACTORING LIABILITIES
 
 
 
GROUP
 
COMPANY
 
December 31
 
2023
 
 
December 31
 
2022
 
 
December 31
 
2023
 
 
December 31
 
2022
 
 
 
 
 
 
 
 
 
Factoring liabilities  3,922
 
3,157
 
1,362
 
636
Total  3,922
 
3,157
 
1,362
 
636
 
 
Some of the suppliers offer modular payment due dates, where the company has the option of payment in
contractual due date period and the option of payment in shorter terms, whereby receiving certain discounts
for early payment. In such options, the company occasionally uses factoring payments, whereby the costs of
factoring for a previously made payment represent a lower cost than the amount of the casa sconto and thus
achieves additional savings.
 
   

Graphics
Notes to the consolidated and separate financial statements (continued) 
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023     151
 
43.  OTHER CURRENT LIABILITIES 
 
 
 
GROUP
 
COMPANY
 
December 31
2023
 
 
December 31
2022
 
 
December 31
2023
 
 
December 31
2022
 
 
 
 
 
 
 
 
 
Liabilities for the purchase of business
share
 
801
 
552
 
801
 
552
Short
-
term provisions for bonuses
 
380
 
445
 
160
 
248
Reserves for accruals unused
vacation days
 
263
 
150
 
123
 
66
Bond interest liabilities  190
 
213
 
190
 
212
Interest loan payables  66
 
186
 
60
 
175
Other  20
 
30
 
1
 
1
Total  1,720
 
1,576
 
1,335
 
1,254
 
 
 
GROUP
 
COMPANY
 
December 31
2023
 
 
December 31
2022
 
 
December 31
2023
 
 
December 31
2022
 
 
 
 
 
 
 
 
 
Short
-
term provisions for
bonuses
 
380
 
445
 
160 
 
248
 
Reserves for accruals unused
vacation days
263
 
150
 
123 
 
66
Total  643
 
595
 
283
 
314
 
 
Changes to short-term provisions can be displayed:
 
 
 
GROUP
 
COMPANY
 
2023
 
2022
 
2023
 
2022
 
 
 
 
 
 
 
 
At 1 January  595
 
128
 
314
 
52
 
Increases  48
 
474
 
(31)
 
262
 
Decreases  - 
 
(7)
 
 
 
-
At 31 December  643
 
595
 
283
 
314
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Graphics
Notes to the consolidated and separate financial statements (continued) 
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
152  M SAN GRUPA ANNUAL REPORT 2023 
 
44.  ACCRUED EXPENSES AND DEFERRED INCOME
 
 
 
GROUP
 
COMPANY
 
December 31
 
2023
 
 
December 31
 
2022
 
 
December 31
 
2023
 
 
December 31
 
2022
 
 
 
 
 
 
 
 
 
Unbilled invoices  2,779
 
1,550
 
701
 
617
Accrued income  142
 
75
 
11
 
23
Other  22
 
24
 
-
 
-
Total  2,943
 
1,649
 
712
 
640
 
 
 
45.  RELATED-PARTY TRANSACTIONS
The table below shows Company's receivables and payables from transactions with its subsidiaries in purchase 
transactions at December 31 2023 and December 31 2022: 
 
 
Receivables
 
Payables
 
December 31
2023
 
 
December 31
2022
 
 
December 31
2023
 
 
December 31
2022
 
 
 
 
 
 
 
 
 
Kim Tec d.o.o., Beograd  3,487
 
2,235
 
(21)
 
-
Kim Tec d.o.o., Vitez  2,519
 
2,819
 
-
 
-
Alterna distribucija d.o.o., Ljubljana  207
 
341
 
(1)
 
-
Kim Tec CG, Podgorica  
170
 
 
-
 
(67)
 
 
(973)
MR Servis d.o.o.  131
 
-
 
(299)
 
(255)
Pakom Kompani d.o.o.e.l., Skopje  93
 
425
 
-
 
(5)
Centar kompetencije za zelenu
energiju d.o.o.
 
61
 
69
 
(15)
 
-
M San Eko d.o.o.  6
 
6
 
-
 
-
Data link d.o.o. Bjelovar  2
 
-
 
1
 
-
M San Logistika d.o.o.  -
 
-
 
(384)
 
(573)
Korvus MK d.o.o.e.l. ,Skopje  -
 
-
 
(110)
 
(13)
 
6,676
 
5,895
 
(898)
 
(1,819)
 
 
 
 
 
 
 
 
 
 
 
 
 

Graphics
Notes to the consolidated and separate financial statements (continued) 
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023     153
 
45.  RELATED-PARTY TRANSACTIONS (CONTINUED)
The table below shows the receivables and payables that the Company had with associates and companies with
a common ultimate owner in sales transactions on December 31 2023 and 2022: 
 
 
 
Receivables
 
Payables
 
December 31
 
2023
 
 
December 31
 
2022
 
 
December 31
 
2023
 
 
December 31
 
2022
 
 
 
 
 
 
 
 
 
Ekupi d.o.o.  10,718
 
8,639
 
-
 
-
Grey Wolf d.o.o.  3,550
 
-
 
-
 
-
Ask Tec d.o.o., Priština  2,526
 
3,037
 
-
 
-
Pametna energija d.o.o.  1,077
 
-
 
-
 
-
MS Industrial Kina  646
 
15
 
(76)
 
-
King ICT d.o.o.  271
 
960
 
-
 
(100)
Planet IX.d.o.o.  88
 
-
 
-
 
-
Omega Software d.o.o.  18
 
-
 
(4)
 
(109)
Aktivis d.o.o.,  8
 
-
 
-
 
(16)
PP Orahovica d.o.o.  7
 
6
 
-
 
-
PPK Valpovo d.o.o.  3
 
-
 
-
 
-
Corvus pay d.o.o.  -
 
5
 
(48)
 
(67)
M San Nekrenine d.o.o.  -
 
-
 
(120)
 
(131)
Ured za podršku d.o.o.  -
 
-
 
(1,295)
 
(707)
 
18,912
 
12,662
 
(1,543)
 
(1,130)
 
 
The table below shows the income and expenses that the Company had in sales transactions with subsidiaries 
in 2023 and 2022: 
 
 
 
Income /sale
 
Expenses
 
Cost of goods
 
2023
 
2022
 
2023
 
2022
 
2023
 
2022
 
 
 
 
 
 
 
 
 
 
 
 
Kim Tec d.o.o., Beograd  36,384 
 
42,624
 
19
 
1
 
171
 
486
Kim Tec d.o.o., Vitez   19,557
 
20,208
 
12
 
15
 
230
 
220
Pakom Kompani d.o.o.e.l., Skopje  13,569
 
14,323
 
 
 
-
 
52
 
648
Kim Tec CG, Podgorica  9,430
 
9,533
 
3
 
8
 
-
 
43
MR Servis d.o.o.  940
 
868
 
1,367
 
1,307
 
51
 
175
Alterna distribucija d.o.o., Ljubljana
128
 
 
343
 
2
 
 
-
 
166
 
 
-
M San Logistika d.o.o.  87
 
62
 
6,034
 
6,056
 
1
 
 
-
Data link d.o.o.
23
 
 
-
 
1
 
 
-
 
-
 
 
-
M San Eko d.o.o.  2
 
12
 
-
 
-
 
-
 
 
-
Kim Tec BG Servis d.o.o  2
 
4
 
-
 
1
 
-
 
 
-
Kim Tec BiH Servis d.o.o. 
1
 
 
1
 
-
 
 
-
 
-
 
 
-
Centar kompetencije za zelenu energiju d.o.o.  -
 
59
 
49
 
-
 
-
 
-
 
80,123
 
88,037
 
7,487
 
7,388
 
671
 
1,572
   

Graphics
Notes to the consolidated and separate financial statements (continued) 
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
154  M SAN GRUPA ANNUAL REPORT 2023 
 
45.  RELATED-PARTY TRANSACTIONS (CONTINUED)
 
The income and expenses of the Company from purchase/sales transactions with its associates and entities with 
the same ultimate owner during 2023 and 2022 were as follows:
 
 
Income /sale
 
Expenses
 
Cost of goods
 
2023
 
2022
 
2023
 
2022
 
2023
 
2022
 
 
 
 
 
 
 
 
 
 
 
 
Ekupi d.o.o.  36,084
 
34,461
 
659
 
2,610
 
605
 
179
King ICT d.o.o.  11,409
 
12,931
 
494
 
136
 
31
 
28
Ask Tec d.o.o., Priština  6,662
 
6,655
 
-
 
-
 
1
 
-
Pametna energija d.o.o.  4,287
 
2,117
 
-
 
-
 
-
 
-
Grey Wolf
 
3,550
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
PP Orahovica d.o.o.  336
 
1,701
 
63
 
161
 
-
 
-
Omega Software d.o.o.  278
 
606
 
82
 
98
 
-
 
1,224
PPK Valpovo d.o.o.  228
 
2,045
 
-
 
-
 
-
 
-
MS Industrial Kina  185
 
-
 
546
 
626
 
8,074
 
8,083
M San Nekrenine d.o.o.  133
 
79
 
1,206
 
675
 
14
 
2
Planet IX .d.o.o.  81
 
36
 
-
 
-
 
-
 
-
Ured za podršku d.o.o.  67
 
88
 
3,339
 
3,066
 
-
 
-
Corvus pay d.o.o.  17
 
8
 
1
 
1
 
-
 
-
Aktivis d.o.o.  14 
 
18
 
1
 
10
 
-
 
-
Kim Tec Nekretnine d.o.o., Beograd  -
 
1
 
-
 
-
 
-
 
-
King ICT d.o.e.l., Skopje  -
 
1
 
-
 
-
 
-
 
-
Zelena Agenda d.o.o.
 
-
 
 
-
 
1
 
 
2
 
-
 
 
-
 
63,331
 
60,747
 
6,392
 
7,385
 
8,725
 
9,516
 
 
The table below presents receivables and revenue of the Company from loan transactions with its subsidiaries at 
31 December 2023 and 2022:
 
 
Receivables
 
Income
 
December 31
 
2023
 
 
December 31
 
2022
 
 
December 31
 
2023
 
 
December 31
 
2022
 
 
 
 
 
 
 
 
 
M San Eko d.o.o.  573
 
526
 
13
 
13
MR Servis d.o.o.  -
 
-
 
-
 
1
M San Logistika d.o.o.  -
 
-
 
-
 
4
 
573
 
526
 
13
 
18
 
 
 
 
 
 
 
 
 
 

Graphics
Notes to the consolidated and separate financial statements (continued) 
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023     155
 
45.  RELATED-PARTY TRANSACTIONS (CONTINUED) 
 
The table below presents receivables and revenue of the Company from loan transactions with its associates
and entities with the same ultimate owner at 31 December 2023 and 2022: 
 
 
 
Receivables
 
Income
 
December 31
 
2023
 
 
December 31
 
2022
 
 
December 31
 
2023
 
 
December 31
 
2022
 
 
 
 
 
 
 
 
 
Baks Grupa d.o.o.  2,488
 
2,567
 
58
 
65
 
2,488
 
2,567
 
58
 
65
 
 
The table below presents liabilities and expenses of the Company from loan transactions with its subsidiaries at
31 December 2023 and 2022:
 
 
December 31
 
2023
 
 
December 31
 
2022
 
 
December 31
 
2023
 
 
December 31
 
2022
 
 
 
 
 
 
 
 
 
Zelena Agenda 1.0 d.o.o.  -
 
(103)
 
1
 
2
 
-
 
(103)
 
1
 
2
 
 
The table below presents the liabilities and expenses that the Company had with its associates and entities
with the same ultimate owner from loan transactions as at 31 December 2023 and 2022:
 
 
Liabilities
 
Expenses
 
December 31
 
2023
 
 
December 31
 
2022
 
 
December 31
 
2023
 
 
December 31
 
2022
 
 
 
 
 
 
 
 
 
PP Orahovica d.o.o.  (102)
 
(102)
 
42
 
103
PPK Valpovo d.o.o.  - 
 
(62)
 
-
 
92
King ICT d.o.o.  -
 
(9)
 
14
 
47
Pametna energija d.o.o.  -
 
-
 
-
 
17
 
(102)
 
(173)
 
56
 
259
 
Management remuneration through the year were as it follows:
 
GROUP
 
COMPANY
 
December 31
 
2023
 
 
December 31
 
2022
 
 
December 31
 
 
2023
 
 
December 31
 
2022
 
 
 
 
 
 
 
 
 
Short
-
term income
-
 
gross
 
1,4
10
 
 
1,025
 
666
 
 
655
Total
 
1,410
 
1,025
 
666
 
655
 
 

Graphics
Notes to the consolidated and separate financial statements (continued) 
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
156  M SAN GRUPA ANNUAL REPORT 2023 
 
46.  FINANCIAL INSTRUMENTS
 
46.1.  Capital risk management
The Group manages its capital to ensure that it will be able to continue as a going concern, while maximising
the return to stakeholders through the optimisation of the debt and equity balance.
 
The Group's capital consists of debt, which includes loans and borrowings disclosed in Notes 34 and 36 and
issued corporate bonds disclosed in Note 37, less cash and cash equivalents (the so-called net debt) and
equity,  which  comprises  share  capital,  reserves  and  retained  earnings  as  reported  in  the  statement  of
changes in equity.
 
46.1.1.  Gearing ratio
 
Gearing ratio at the end of the reporting period:
 
 
GROUP
 
COMPANY 
 
December 31
2023
 
 
December 31
2022
 
 
December 31
2023
 
 
December 31
2022
 
 
 
 
 
 
 
 
 
Debt  46,348
 
47,366
 
40,736
 
42,039
Less: cash in banks and petty
cash
 
(24,015)
 
(14,526)
 
(16,302)
 
(9,894)
 
22,333
 
32,840
 
24,434
 
32,145
 
 
 
 
 
 
 
 
Equity  45,256
 
40,622
 
19,434
 
18,050
Gearing ratio  49.35%
 
80.84%
 
125.73%
 
178.09%
 
 
Debt consists of long-term loansand finance lease payables and short-term loans from financial institutions.  
 
 
 
 
 
 
 
 
 
 
 
 
 

Graphics
Notes to the consolidated and separate financial statements (continued) 
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023    157
 
46.  FINANCIAL INSTRUMENTS (CONTINUED)
 
46.1.  Capital risk management (continued)
The Group and the Company are exposed to the following risks arising from financial instruments:
 
46.1.2. Categories of financial instruments
 
 
GROUP
 
COMPANY
 
December 31
 
2023
 
 
December 31
 
2022
 
 
December 31
 
2023
 
 
December 31
 
2022
 
 
 
 
 
 
 
 
 
Financial assets 
 
 
 
 
 
 
 
Cash and cash equivalents  24,015
 
14,526
 
16,302
 
9,894
Loans and receivables   80,070
 
58,108
 
52,168
 
38,085
Total financial assets  104,085
 
72,634
 
68,470
 
47,979
 
 
 
 
 
 
 
 
Financial liabilities
 
 
 
 
 
 
 
Bank loans  25,113 
 
23,476
 
19,501
 
18,149
Corporate bonds
21,235
 
 
23,890
 
 
21,235
 
23,890
Other financial liabilities  898
 
1,433
 
22
 
74
Total financial liabilities  47,246
 
48,799
 
40,758
 
42,113
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Graphics
Notes to the consolidated and separate financial statements (continued) 
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
158  M SAN GRUPA ANNUAL REPORT 2023 
 
46.  FINANCIAL INSTRUMENTS (CONTINUED)  
 
46.2.  Foreign currency risk management 
The Group and the Company undertakes certain transactions denominated in foreign currencies. Hence,
exposures to exchange rate fluctuations arise.
The carrying amounts of the Group’s foreign-currency denominated monetary assets and liabilities at the
reporting date are provided in the table below:
  
GROUP
 
 
Assets
 
Liabilities
 
Difference
 
 
 
December
31 2023
 
 
December
31 2022
 
 
December
31 2023
 
 
December
31 2022
 
 
December
31 2023
 
 
December
31 2022
 
 
 
 
 
 
 
 
 
 
 
 
 
 
USD
 
 
6,057
 
 
5,976
 
 
(15,246)
 
 
(12,227)
 
 
(9,189)
 
 
(6,250)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COMPANY
 
 
Assets
 
Liabilities
 
Difference
 
 
 
December
31 2023
 
 
December
31 2022
 
 
December
31 2023
 
 
December
31 2022
 
 
December
31 2023
 
 
December
31 2022
 
 
 
 
 
 
 
 
 
 
 
 
 
 
USD
 
 
6,745
 
 
7,209
 
 
(14,262)
 
 
(11,827)
 
 
(7,517)
 
 
(4,618)
 
 
46.2.1.  Analysis of sensitivity to currency risk
The following table shows analysis of the Group’s sensitivity to a 10% increase and decrease of the euro
against foreign exchange rate against the relevant foreign currencies. Sensitivity rate of 10% is the rate which
is used in internal reports on foreign exchange risk which are presented to the Management and represents
the Management's assessment of the reasonably possible change in foreign exchange rates. The sensitivity
analysis  includes  only  outstanding  monetary  foreign  currency  balances  and  it  is  used  for  translation  of
balances which are adjusted for a 10% change in the foreign exchange rates. The sensitivity analysis includes
external borrowings, as well as loans to foreign entities of the Group denominated in a currency that is not
the currency of the lender or the borrower. A positive number below indicates an increase in profit and other
equity  when  the  euro  strengthens 10%  against  the relevant currency.  For  a  10% weakening  of  the euro 
against the relevant currency, there would be an equal and opposite impact on the profit, and the balances
below would be negative.
   

Graphics
Notes to the consolidated and separate financial statements (continued) 
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023     159
 
46.  FINANCIAL INSTRUMENTS (CONTINUED)
 
46.2.  Foreign currency risk management (continued) 
46.2.1.  Analysis of sensitivity to currency risk (continued)
 
GROUP
 
 
USD
 
impact
 
 
 
2023
 
 
2022
 
 
 
 
 
 
Profit
/
Loss
 
 
(919)
 
 
(625)
 
 
 
 
 
 
 
 
USD
 
impact
 
COMPANY
 
 
2023
 
 
2022
 
 
 
 
 
 
Profit
/
Loss
 
 
(752)
 
 
(462)
 
 
 
46.3.  Credit risk management 
 
Credit risk is the risk of default by counterparty in settling its liability or contractual obligations to the Company
and the Group, as a result of which the Group and the Company may incur financial losses. The Group and
the Company have adopted procedures they apply in transacting with their customers and, where possible,
they obtain payment security instruments to protect themselves from potential financial and default risks.  
Trade  receivables  are  continuously  monitored  so  as  to  identify  any  potential  risk  of  default  and  take
appropriate measures. The Group and the Company monitor regularly their credit exposures to customers
and revise the risk assessment at least once a year. The Group and the Company operate with a large number
of customers from various industries and of various size as well as individuals with a specific type of credit
risk. The Group and the Company have developed separate procedures for each of the groups of customers
in order to ensure that credit risk is adequately managed.
The Group's customer portfolio is highly diversified, and the 10 largest customers account for 27.5% of sales
revenue. If customers with a common ultimate owner are excluded, the top 10 customers account for 18.1%
of sales revenue.
 
 
 
 
 
 
 

Graphics
Notes to the consolidated and separate financial statements (continued) 
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
160  M SAN GRUPA ANNUAL REPORT 2023 
 
46.  FINANCIAL INSTRUMENTS (CONTINUED)  
 
46.4.  Interest risk management  
 
Since the Company and the Group use both fixed and variable rate loans, they are exposed to the interest
rate risk. Most of the Company's and Group’s loans bear interest at a fixed rate. 
Interest rate sensitivity analysis 
The sensitivity analyses below has been determined based on the exposure to risk of the change of interest
rates at the date of the statement of financial position. For variable rate liabilities, the analysis is prepared
assuming the amount of liability outstanding at the date of the statement of financial position was outstanding
for the whole year. A 100 basis point increase or decrease is used in internal reporting on interest rate risk
and represents management’s assessment of the reasonably possible change in interest rates.
If interest rates had been 100 basis points higher/lower and all other variables were held constant, the interest
expense of the Company as of 31 December 2023 would have changed by EUR 195 thousand (31 December
2022: EUR 71 thousand), and the Group as of 31 December 2023 would have changed by EUR 212 thousand
(31 December 2022: EUR 85 thousand). Interest rates on issued corporate bonds and loans were not taken
into account because they are instruments with fixed interest rates.
 
46.5.   Liquidity risk management 
Ultimate  responsibility  for  liquidity  risk  management  rests  with  the  board  of  directors,  which  has  built  an
appropriate liquidity risk management framework for the management of the Group’s short, medium and long-
term funding and liquidity management requirements. 
 
46.5.1.  Liquidity and interest rate risk tables
The following tables detail the Group’s remaining contractual maturity for its non-derivative financial liabilities.
The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the
earliest date on which the Group and the Company can be required to pay. Disclosures of non-derivative
financial assets and liabilities are necessary for understanding the manner in which the Group manages its
liquidity risk, as it is managed on the basis of net amounts of financial assets and liabilities.
 
 
 
 
 
 
 

Graphics
Notes to the consolidated and separate financial statements (continued) 
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023     161
 
46.  FINANCIAL INSTRUMENTS (CONTINUED)
 
46.5.   Liquidity risk management (continued) 
 
46.5.1. Liquidity and interest rate risk tables (continued)
 
 
GROUP
Up to 1
month
 
1 to 3
months
 
3 months to
1year
 
1 to 5
years
 
After 5
year
 
Total
December 31 2023
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
Non-interest bearing  100,747
 
-
 
-
 
24
 
-
 
100,771
Interest bearing
instruments
 
-
 
-
 
1,719
 
2,468
 
-
 
4,187
Total assets  100,747
 
-
 
1,719
 
2,492
 
-
 
104,958
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Non-interest bearing  74,059
 
-
 
-
 
-
 
-
 
74,059
Lease liabilities  41
 
82
 
369
 
406
 
-
 
898
Interest bearing
instruments
 
3,140
 
3,627
 
17,646
 
21,935
 
-
 
46,348
Total liabilities  77,240
 
3,709
 
18,015
 
22,341
 
-
 
121,305
Net asset / (liabilities)  23,507 
 
(3,709)
 
(16,296)
 
(19,849)
 
-
 
(16,347)
 
 
 
GROUP
Up to 1
month
 
1 to 3
months
 
3 months to 1
year
 
1 to 5
years
 
After 5
year
 
Total
December 31 2022
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
Non-interest bearing  68,025
 
-
 
-
 
17
 
-
 
68,042
Interest bearing
instruments
 
-
 
-
 
655
 
2,450
 
-
 
3,105
Total assets  68,025
 
-
 
655
 
2,467
 
-
 
71,147
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Non-interest bearing  64,020
 
-
 
-
 
-
 
-
 
64,020
Lease liabilities  42
 
85
 
381
 
925
 
-
 
1,433
Interest bearing
instruments
 
3,075
 
3,495
 
17,053
 
23,744
 
-
 
47,367
Total liabilities  67,137
 
3,580
 
17,434
 
24,669
 
-
 
112,820
Net asset / (liabilities)  888 
 
(3,580)
 
(16,779)
 
(22,202)
 
-
 
(41,673)
 
 
 

Graphics
Notes to the consolidated and separate financial statements (continued) 
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
162 M SAN GRUPA ANNUAL REPORT 2023      
 
46.  FINANCIAL INSTRUMENTS (CONTINUED)
 
46.5.   Liquidity risk management (continued) 
 
46.5.1. Liquidity and interest rate risk tables (continued)
 
 
COMPANY
Up to 1
month
 
1 to 3
months
 
3 months to 1
year
 
1 to 5
years
 
After 5
year
 
Total
December 31 2023
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
Non-interest bearing  65,771
 
-
 
-
 
17
 
-
 
65,788
Interest bearing
instruments
 
-
 
-
 
353
 
2,429
 
-
 
2,782
Total  65,771
 
-
 
353
 
2,446
 
-
 
68,570
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Non-interest bearing  58,202
 
-
 
-
 
-
 
-
 
58,202
Finance lease liabilities  2
 
3
 
15
 
1
 
-
 
21
Interest bearing
instruments
 
2,725
 
2,795
 
13,905
 
21,312
 
-
 
40,736
Total  60,928
 
2,798
 
13,920
 
21,313
 
-
 
98,959
Net asset / (liabilities)  4,843
 
(2,798)
 
(13,567)
 
(18,867)
 
-
 
(30,389)
 
 
COMPANY
Up to 1
month
 
1 to 3
months
 
3 months to 1
year
 
1 to 5
years
 
After 5
year
 
Total
December 31 2022
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
Non-interest bearing  43,267 
 
-
 
-
 
17
 
-
 
43,284
Interest bearing
instruments
 
-
 
-
 
661
 
2,429
 
-
 
3,090
Total  43,267 
 
-
 
661
 
2,446
 
-
 
46,374
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Non-interest bearing  47,604 
 
-
 
-
 
-
 
-
 
47,604
Finance lease liabilities  4
 
8
 
37
 
25
 
-
 
74
Interest bearing
instruments
 
2,698
 
2,741
 
13,661
 
22,939
 
-
 
42,039
Total  50,306 
 
2,749
 
13,698
 
22,964
 
-
 
89,717
Net asset / (liabilities)  (7,039) 
 
(2,749)
 
(13,037)
 
(20,518)
 
-
 
(43,343)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Graphics
Notes to the consolidated and separate financial statements (continued) 
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023     163
 
46.  FINANCIAL INSTRUMENTS (CONTINUED)
   
46.6.  Fair value of financial instruments
The fair values of financial assets and financial liabilities are determined as follows:
  the fair value of financial assets and financial liabilities with standard terms and conditions and traded on
active liquid markets is determined with reference to quoted market prices;
  the fair value of other financial assets and financial liabilities is determined in accordance with generally
accepted pricing models based on discounted cash flow analysis using prices from observable current
market transactions and dealer quotes for similar instruments;
As at 31 December 2023, reported amounts of cash, short-term deposits, receivables, short-term liabilities,
accrued expenses, short-term loans and other financial instruments correspond to their market value, due to
the short-term nature of these assets and liabilities.
The following hierarchy provides an analysis of financial instruments measured subsequently at fair value,
grouped into three groups depending on the availability of fair value indicators:
Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for
identical assets or liabilities,
Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level
1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from
prices); and
Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset
or liability that are not based on observable market data.
 
 
   

Graphics
Notes to the consolidated and separate financial statements (continued) 
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
164  M SAN GRUPA ANNUAL REPORT 2023 
 
46.  FINANCIAL INSTRUMENTS (CONTINUED)
 
46.7.  Market risk
Market risk is the risk that changes in market prices, exchange rates and interest rates will affect the income,
investments or financial instruments of the Company. The objective of market risk management is to maintain
the market risk exposure within acceptable limits, while optimising the result.  
 
47.  CONTRACTUAL AND CONTINGENT LIABILITIES
The Group and the Company lease business premises, offices, warehouses and vehicles. The duration of
the lease contracts is up to one year. The most significant lease obligations are operating leases of business
premises and warehouses.  The table below details the Group's and the Company's contracted liabilities per
operating leases:  
 
 
GROUP
 
COMPANY
 
2023
 
2022
 
2023
 
2022
 
 
 
 
 
 
 
 
Within one year  2,809
 
2,859
 
739
 
609
1-5 years  22
 
24
 
-
 
-
Total  2,831
 
2,883
 
739
 
609
 
Future liabilities are presented at the cumulative level for the entire contract duration for contracts with a maturity
of more than one year. 
 
 
 
 
 
 
 
 
 
 
 
 
   

Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 165
48. BUSINESS COMBINATIONS AND DEACQUISITIONS
48.1. BUSINESS COMBINATIONS AND DEACQUISITIONS IN 2022
A. SEPARATION OF THE REAL ESTATE SEGMENT FROM SUBSIDIARIES INTO SEPARATE ENTITIES
In January 2022, the company M San acquired the company KIM TEC Nekretnine d.o.o. Vitez, BiH from the
subsidiary KIM TEC d.o.o. Vitez, BIH.
In March 2022, the Company submitted an application to the Commercial Court in Zagreb for the implementation
of the separation procedure in such a way that part of the investments and net assets of the Company and the
Group related to subsidiaries (KIM TEC Nekretnine d.o.o. Vitez, BiH and Kim Tec Nekretnine d.o.o. Belgrade,
Serbia) transfers to Ribnjak Jasinje d.o.o. and Ribnjak Narta d.o.o. owned by a common ultimate owner.
The Company recognized the need to implement the mentioned changes in order to optimize its operations and
limit its business decisions and transactions to the part of the group that falls under its area of responsibility.
The Company carried out the mentioned transactions according to the book values, and the same had no effects
on the results of operations in 2022. The total net value of the separated assets amounts to EUR 5.266 thousand.
KIM TEC BIH
NEKRETNINE
KIM TEC BG
NEKRETNINE
Property, plant and equipment
2,795
3,080
Other non-current assets
-
162
Trade receivables
8
49
Cash and cash equivalents
6
19
Other current assets
1
-
Total assets
2,811
3,311
Non-current liabilities
573
822
Current liabilities
114
191
Net assets of division
687
1,013
2,124
2,298
B. ACQUISITION OF THE SUBSIDIARY COMPANY ALTERNA DISTRIBUTION D.O.O.
The Company acquired 100% of the ownership stake in company Alterna distribucija d.o.o., Slovenia in
November 2022, upon fulfillment of all conditions precedent defined in the sales and purchase agreement,
signed in May 2022. This company was acquired as part of the investment cycle, which enabled the Enterprise
division to expand its presence in another country, strengthen its position for about 15 new specialists, and gain
reach to about 300 new partners. This acquisition helped the Group strengthen its position in the Value Added
Distribution segment in the region. The initial estimated value of the acquisition of 100% share was EUR 3,762
thousand, and on 31.12.2023 EUR 3,691 thousand (note 21.1), of which the amount paid at the conclusion of
the transaction is EUR 2,175 thousand, and the remaining amount represents the expected amount of payment
depending on the achieved EBITDA of the company in the period 2022-2024. From 1.11.2022 company was
consolidated into the Group, and based on the aforementioned transaction, Group recognized goodwill in the
amount of EUR 2,878 thousand (note 19).


Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
166 M SAN GRUPA ANNUAL REPORT 2023
48. BUSINESS COMBINATIONS AND DEACQUISITIONS (CONTINUED)
48.1. BUSINESS COMBINATIONS AND DEACQUISITIONS IN 2022 (CONTINUED)
B. ACQUISITION OF THE SUBSIDIARY COMPANY ALTERNA DISTRIBUTION D.O.O. (CONTINUED)
In June 2023, the Company carried out the Purchase Price Allocation (PPA) and recognized the fair value of the
property acquired through the acquisition in the amount of EUR 6,051 thousand. Given that the fair value of the
asset is higher than the estimated cost of acquisition, the Group derecognised the goodwill and recognized a
gain from a bargain purchase in the amount of EUR 1,560 thousand (note 6).
The balance sheet of the acquired company on the mentioned date was as follows:
November
2022
Property, plant and equipment
612
Inventories
2,489
Trade receivables
4,470
Cash and cash equivalents
279
Other current asset
925
Total assets
8,775
Non-current liabilities
475
Current liabilities
7,417
Total Liabilities
7,891
Carrying value of net assets
884
C. MERGER OF THE COMPANY
Furthermore, in December 2022, based on the merger agreement dated December 28 2022, the Company
merged the related company Corvus info d.o.o. The merger was carried out at book values.
The balance sheet of the merge company is on the mentioned date was as follows:
December
2022
Intangible assets
247
Property, plant and equipment
5
Investing in a subsidiary
5
Cash and cash equivalents
89
Other current asset
8
Total assets
353
Current liabilities
296
Total Liabilities
296
Carrying value of net assets
57


Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 167
48. BUSINESS COMBINATIONS AND DEACQUISITIONS (CONTINUED)
48.1. BUSINESS COMBINATIONS AND DEACQUISITIONS IN 2022 (CONTINUED)
C. MERGER OF THE COMPANY (CONTINUED)
In addition to long-term tangible assets, the Company acquired the ownership stake in the subsidiary Korvus
MK d.o.o.e.l. Macedonia thus acquired ownership and voting rights in the 100% amount.
D. TRANSFER OF CONTROL IN THE COMPANY EKO BOSANSKA POSAVINA
During 2022, the company with joint ultimate owner PPK Valpovo d.o.o. recapitalized the subsidiary company
EKO Bosanska Posavina, thereby acquiring an ownership share of 22.77%. At the end of the year, PPK
Valpovo additionally purchased a 3.33% share from the related company KIM TEC Vitez, which increased
PPK Valpovo's share to 26.10%. The mentioned transaction was carried out at the book value and had no
effect on the Group's operating result in 2022.
With the amendments to the Article of Association of EKO Bosanska Posavina, which were made after the
recapitalization, PPK Valpovo acquired 75% of the voting rights at the company's Assembly. The responsibility
of the Assembly of the company is to appoint the members of the Management Board and the Supervisory
Board, which consists of 5 members, of which three members are appointed on the proposal of PPK Valpovo.
Additionally, with the signing of the Agreement on managing the affairs of the company EKO Bosanska
Posavina, between the shareholders, it was defined that PPK Valpovo will direct the relevant affairs of the
company EKO Bosanska Posavina, thereby gaining control over this company. With November 30, 2022 this
company is no longer consolidated within the M SAN Grupa.
The balance sheet of the company EKO BOSANSKA POSAVINA on the mentioned date was as follows:
December
2022
Property, plant and equipment
2,050
Other non-current assets
331
Inventories
292
Trade receivables
274
Cash and cash equivalents
69
Other current asset
167
Total assets
3,183
Non-current liabilities
342
Current liabilities
150
Total Liabilities
492
Carrying value of net assets
2,691
E. ESTABLISHMENT OF A NEW COMPANY CENTAR KOMPETENCIJE ZA ZELENU ENERGIJU
In April 2022, the Company established a new company, Centar kompenetcije za zelenu energiju, with a cash
payment of EUR 100 thousand. The headquarters of the Company is in Buzin (City of Zagreb), Buzinski prilaz
10. The registered activity of the company is technical testing and analysis.


Graphics
Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
168 M SAN GRUPA ANNUAL REPORT 2023
48. BUSINESS COMBINATIONS AND DEACQUISITIONS (CONTINUED)
48.2. BUSINESS COMBINATIONS AND DEACQUISITIONS IN 2023
A. SALE OF SUBSIDIARY COMPANY ZELENA AGENDA 1.0
In March 2023, the Company sold the subsidiary Zelena Agenda 1.0 d.o.o. to the company Pametna energija
d.o.o. (a company with a common ultimate owner). The aforementioned transaction was carried out according
to book values and had no effects on the result of operations in 2023. The total net value of the separated
assets amounts to EUR 132 thousand as of 6 March 2023.
B. ACQUISITION OF THE SUBSIDIARY DATA LINK D.O.O.
In July 2023, upon fulfillment of all the conditions precedent defined in the sales and purchase agreement on
the acquisition of 100% ownership stake in the company Data link d.o.o., Croatia, signed in May 2023, the
Company acquired the mentioned company. The estimated value of the acquisition of 100% of the share is EUR
2,277 thousand, of which the amount paid at the conclusion of the transaction is EUR 1,907 thousand, and the
remaining amount represents the expected amount of payment depending on the achieved EBIT of the company
in the period 2023-2026. With the aforementioned, the Company gained control over the subsidiary as of July
1, 2023 and from that moment it was consolidated into the Group. After the Purchase Price Allocation (PPA),
the Group recognized goodwill in the amount of EUR 567 thousand (note 19).
July 2023
Property, plant and equipment
707
Intangible assets
51
Inventories
376
Trade receivables
157
Cash and cash equivalents
60
Other current asset
14
Total assets
1,365
Non-current liabilities
209
Current liabilities
511
Total Liabilities
720
Carrying value of net assets
645

49. SUBSEQUENT EVENTS
There were no other significant events after the balance sheet date that would require reconciliation or
disclosure in the consolidated and separate financial statements.


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Notes to the consolidated and separate financial statements (continued)
for the year ended 31 December 2023
(all amounts are expressed in thousands of euro)
M SAN GRUPA ANNUAL REPORT 2023 169
50. AUDIT FEES
Fees for the statutory audit of the Group’s financial statements amounted to EUR 127 thousand (2022: EUR
172 thousand), while fees for other services amounted to EUR 0 thousand (2022: 0 thousand).

51. APPROVAL OF THE FINANCIAL STATEMENTS
Consolidated and separate financial statements for the year ended on December 31, were approved by the
Management Board and authorised for issue on April 23, 2024
Irena Langer-Breznik Žarko Kruljac Slaven Stipančić
President of Management Board Member of Management Board Member of Management Board
Goran Kotlarević Alen Panić Vladimir Brkljača
Member of Management Board Member of Management Board Member of Management Board

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170 M SAN GRUPA ANNUAL REPORT 2023
Zagreb, 23 April 2024
Pursuant to the provisions of Articles 300a and 300b of the Companies Act, the Management Board of the
Company adopted next
D E C I S I O N
I. The Annual Report of the Company for 2023 is determined according to the text attached to this Decision.
II. The consolidated and separate Annual Financial Report for 2023 are determined, which consists of:
- statement of financial position (balance sheet),
- profit and loss account,
- report on other comprehensive income,
- cash flow statement,
- report on changes in equity,
- notes to the financial statements,
according to the text attached to this Decision and are an integral part of the report referred to in item I of this
Decision.
III. The Audit Report for 2023 is an integral part of the report referred to in item I of this Decision.
IV. The Annual Report on the Situation of the Company and Associated Companies for 2023 is determined
(management report), together with the Statement on the Application of the Code of Corporate Governance
which forms an integral part of the report referred to in item I of this Decision.
V. Annual report of the Company for 2023, ie reports from item II. to IV. these decisions are submitted to the
Supervisory Board for examination.
VI. This Decision shall enter into force on the day of its adoption.
Irena Langer-Breznik Žarko Kruljac Slaven Stipančić
President of Management Board Member of Management Board Member of Management Board
Goran Kotlarević Alen Panić Vladimir Brkljača
Member of Management Board Member of Management Board Member of Management Board

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M SAN GRUPA ANNUAL REPORT 2023 171
Zagreb, 23 April 2024
Pursuant to the provisions of Article 300.d, and in accordance with the provisions of Article 300.c of the
Companies Act, after the examination of the submitted relevant reports of the Management Board, the
Supervisory Board of the Company at its meeting held on April 23, 2024 adopted the following
D E C I S I O N
I. Consent is given to the Annual Report of the Company for 2023 according to the text attached to this
Decision.
II. Consent is given to:
- consolidated and separate Annual Financial Report for 2023, consisting of:
- statement of financial position (balance sheet), income statement, statement of other comprehensive
income, cash flow statement, statement of changes capital, notes to the financial statements,
- Audit Report for 2023,
- Annual report on the state of the Company and its affiliates for 2023 (management report), together with a
statement on the application of the corporate governance code, according to the text attached to this Decision,
which reports are an integral part of the report referred to in point I. of this Decision.
III. Pursuant to the provisions of Article 300d of the Companies Act by giving consent from point II. Of this
Decision, unconsolidated and consolidated Annual Financial Statements of the Company for 2023 was
determined by the Management Board and the Supervisory Board of the Company.
IV. This Decision shall enter into force on the day of its adoption.
Željko Menalo
President of the Supervisory Board

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172 M SAN GRUPA ANNUAL REPORT 2023
Zagreb, 23 April 2024
Pursuant to the provisions of Articles 275 and 300.b of the Companies Act, the Management Board of the
Company passed next
D E C I S I O N
I. The proposal of the Decision on use, which is sent to the General Assembly for adoption, is determined,
which reads:
I. It is determined that the total realized profit after tax for 2023 amounts to EUR 1,382,921.78
II. The total realized profit for 2023, after taxation, in the amount of EUR 1,382,921.78, is allocated to the
retained earnings of the Company.
II. This Decision shall enter into force upon obtaining the consent of the Supervisory Board.
Irena Langer-Breznik Žarko Kruljac Slaven Stipančić
President of Management Board Member of Management Board Member of Management Board
Goran Kotlarević Alen Panić Vladimir Brkljača
Member of Management Board Member of Management Board Member of Management Board

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M SAN GRUPA ANNUAL REPORT 2023 173
Zagreb, 23 April 2024
Pursuant to the provisions of Article 300.c of the Companies Act, after an examination submitted the proposal
of the Decision in the use of profit, the Supervisory Board of the Company at its meeting on April 23, 2023,
adopted the following
D E C I S I O N
I. Consent is given to the proposal of the Decision on use which is sent to the General Assembly on adoption,
which reads:
I. It is determined that the total realized profit after tax for 2023 amounts to EUR 1,382,921.78.
II. The total realized profit for 2023, after taxation, in the amount of EUR 1,382,921.78. is allocated to the
retained earnings of the Company.
II. This Decision shall enter into force on the day of its adoption.
Željko Menalo
President of the Supervisory Board

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M SAN GRUPA ANNUAL REPORT 2023 79
M SAN GRUPA d.o.o.
Dugoselska ulica 5,
10372 Rugvica ,
Republika Hrvatska
www.msan.hr

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M SAN GRUPA d.o.o.
Dugoselska ulica 5,
10372 Rugvica ,
Republika Hrvatska
www.msan.hr
M SAN GRUPA d.o.o.
Dugoselska ulica 5,
10372 Rugvica ,
Republika Hrvatska
www.msan.hr