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Annual Report
2022
CIAK Grupa d.d.
Savska Opatovina 36
10090 Zagreb
+385 1 34 63 521
+385 1 34 63 522
+385 1 34 63 523
+385 1 34 63 524
+385 1 34 63 516 (Fax)
ciak@ciak.hr
www.ciak.hr
investitori@ciak.hr
Investor Relations
Annual Report
2022
Annual Report 2022 – CIAK Grupa d.d. and its subsidiaries
Sustainable Mobility
www.ciak.hr
Annual Report 2022 – CIAK Grupa d.d. and its subsidiaries
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
2
3
MANAGEMENT REPORT 4
1. SUMMARY OF FINANCIAL RESULTS FOR 2022 4
2. STATEMENT BY PRESIDENT OD THE MANAGEMENT BOARD 5
3. KEY BUSINESS INDICATORS 6
4. ORGANIZATIONAL STRUCTURE OF CIAK GROUP 7
4.1. History and incorporation 7
5. CORPORATE GOVERNANCE 8
6. OPERATING RESULTS 9
6.1. Consolidated prot and loss statement 9
6.2. Consolidated statement of nancial position 10
6.3. Financial indicators 11
7. KEY EVENTS FOR THE PERIOD UP TO 31 DECEMBER 2022 12
8. MARKETS, CUSTOMERS, PRODUCTS AND SERVICES 13
8.1. Car parts 14
8.2. Batteries oils, etc 15
8.3. Freight program 15
8.4. Recycling 16
8.5. Waste management 16
8.6. Wholesale 17
9. MAIN RISK AND UNCERTAINITIES TO WHICH THE GROUP IS EXPOSED 18
9.1. Currency risk management 18
9.2. The Group's exposure to interest rate risk 18
9.3. The Group's exposure to credit risk 19
9.4. Group's exposure to liquidity risk and cash ow risk 19
10. OWNERSHIP STRUCTURE 20
11. CONSOLIDATED FINANCIAL STATEMENTS OD CIAK GROUP D.D. 21
11.1. Consolidated prot & loss statement 21
11.2. Consolidated statement of nancial position 24
11.3. Consolidated statement of cash ow 25
11.4. Consolidated statement of changes in equity 29
12. UNCONSOLIDATED FINANCIAL STATEMENTS OF CIAK GROUP D.D. 31
12.1. Unconsolidated prot & loss statement 31
12.2. Unconsolidated statement of nancial position 33
12.3. Unconsolidated statement of cash ow 36
12.4. Unconsolidated statement of changes in equity 37
13. SUSTAINABILITY AT CIAK GROUP 41
13.1. Environmental protection 41
13.2. Sustainable development strategy in CIAK Group 41
13.3. CIAK Group's employees 43
13.4. Key performance indicators of environmentally sustainable economic activities 44
13.4.1. Proportion of turnover from products or services associated with taxonomy-aligned economic activities 44
13.4.2. Proportion of OPEX from products or services associated with taxonomy-aligned economic activities 45
13.4.3. Proportion of CAPEX from products or services associated with taxonomy-aligned economic activities 46
13.5. CIAK Auto Academy 47
13.6. Certicates and associations 48
13.6.1. Certicates 48
13.6.2. Associations 50
13.7. New product 51
13.7.1. Tools and service equipment 51
13.7.2. Fleet department 52
13.8. EcoCycle 54
14. OVERVIEW OF OTHER ANNOUNCEMENTS, EVENTS, EVALUATIONS AND DATA 56
14.1. Important business events after closure of business year 56
14.2. CIAK Group's subsidiaries 56
14.3. Repurchase of treasury shares 56
15. EXPECTED DEVELOPMENT OF THE GROUP IN THE FUTURE 57
15.1. Making annual business plans 57
15.2. Group's R&D activities 57
16. STATEMENT ON THE APPLICATION OF THE CORPORATE GOVERNANCE CODE 58
16.1. Shareholders and the investment public 58
16.2. Administrative and supervisory bodies and employees 59
16.3. Internal and external audit of the company 59
INDEPENDENT AUDITORS' REPORT AND CONSOLIDATED FINANCIAL STATEMENTS 60
STATEMENT OF MANAGEMENT’S RESPONSIBILITIES 61
INDEPENDENT AUDITORS’ REPORT TO THE SHAREHOLDERS OF CIAK GRUPA D.D 62
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 70
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 71
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY 72
CONSOLIDATED STATEMENT OF CASH FLOWS 73
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 74
Contents
This format of the Annual Report isn’t the ocial version of the ESEF Report.
Annual Report for the year 2021. in ESEF format will be published at a later date
1
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
4
(1)
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) = EBIT (Earnings Before Interest and Taxes) + Amortization
(2)
EBITDA, operating and gross prot in I-XII 2022 were negatively affected by HRK 1.2 million one-off items, which are related to the principal and default interest costs
of the litigation, and the subsequent customs costs of 2017; in I-XII 2021, EBITDA was positively affected by HRK 23.8 million one-off items, which are related to income
from subsequently collected receivables of previous periods, consolidation effects based on company acquisitions, cassasconto from advance payments (post IPO
approach to one part of group suppliers) and the multi-year inventory write-off acquired through acquisition processes in previous periods
(
3)
Earnings per share = net prot / number of shares
(4)
Simplied Free Cash Flow = EBITDA without one-off items – CAPEX (capital expenditures
(5)
Net debt = Long and short-term nancial liabilities – Cash and cash equivalent
(6)
Gearing ratio = Long and short-term nancial liabilities – Loans and deposits given - Cash and cash equivalents / (Long and short-term nancial liabilities – Loans and
deposits given - Cash and cash equivalents + Equity)
(7)
When converting the value from HRK to EUR, the following median exchange rates of Croatian National Bank (CNB) apply: for I-IX 2021 – 7.52 EUR/HRK; I-IX 2022 – 7.53
EUR/HRK. The results overview in EUR currency applies exclusively for reporting purposes and does not reect the currency risk of the consolidated statement.
1
MANAGEMENT REPORT
Summary of nancial results for
2022
Consolidated incomes of CIAK Group achieved during 2022 are
HRK 1,716 million or 24% higher compared to 2021. Reported
EBITDA is HRK 145 million and is 2% higher than in the same
period last year, primarily as a result of a combination of organic
growth of the CIAK Group and inorganic growth resulting from
realized acquisitions in 2022.
Consolidated EBITDA excluding one-off items amounts to HRK
146 million and is 24% higher than the EBITDA excluding one-
off items of the previous year.
CIAK Group achieved further growth in 2022, which was even
more successful than the previous business year.
Capital and other investments in 2022 amount to HRK 68 million
and are at almost the same levels compared to the previous
year's investments.
The indicators of net debt and gearing in the reporting period
are at almost the same levels as in the previous reporting
period.
With the realized acquisitions and further business growth in
2022, the same reects the stable consolidated balance sheet
position of CIAK Group.
In HRK thousands I.-XII. 2021. I.-XII. 2022. %
Sales revenues 1,345,336 1,706,484 27
EBITDA
(1)
141,681 145,066 2
EBITDA without one-off items
(2)
117,857 145,961 24
Prot / (Loss) from operations 90,942 73,807 (19)
Prot from operations without one-off items
(2)
67,118 74,702 11
Result from nancial activities (8,584) (11,812) 38
Gross prot / (loss) 82,358 61,995 (25)
Gross prot / (loss) of period without one-off items 58,534 63,182 8
Net prot / (loss) 70,097 46,136 (34)
Net prot / (loss) of period without one-off items
(2)
46,272 47,323 2
Earnings per share
(3)
3.55 2.35 (34)
Simplied free cash ow
(4)
47,052 78,447 67
Net debt
(5)
336,847 366,303 8
Net gearing (%)
(6)
40 42 5
CAPEX 70,805 67,515 (5)
1
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
5
Statement by President
of the Management Board
2
Ivan Leko
President of the
Management Board
Business year 2022 continued to provide global challenges at all levels. From the very beginning
of the year, the continuation of changes in the external environment is still visible, which in
certain segments are intensifying even more and creating additional pressures on business,
daily operational activities and ultimately the nancial results of all market participants. This
year, this is primarily reected in growing inputs at all levels as a result of global ination, growth
in reference interest rates, and additional instability caused by events in Eastern Europe started
at the beginning of the year. Despite all of the above, CIAK Group continues the trend of business
growth and delivery of good business results.
CIAK Group's operating income at the consolidated level in 2022 amounts to HRK 1.72 billion and
is 24% higher than the year before. On the other hand, the reported EBITDA for 2022 is HRK 145
million and is 2% higher than the previous year.
It is important to note that EBITDA without one-off items compared to 2021 is HRK 28 million or
24% higher.
Capital investments amount to almost HRK 70 million and are at the level of the previous year,
which conrms the continuity of investments in the further development of CIAK Group.
At the end of the year, the number of CIAK Group employees was 2,339 in six countries, and
compared to the previous year, it increased by over 15%. All the associates and employees of
CIAK Group should be congratulated on the achieved results. Despite the mentioned results, in
the existing environment it is important to maintain the optimality of business at the operational
level. CIAK Group maintains its focus on this, as well as delivering the goals dened by CIAK
Group's business plans. In parallel, the delivery of key projects at the CIAK Group level and the
development of strategic markets continue with the aim of ensuring continuity in the delivery of
results in the following periods.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
6
3
1.716
mHRK
consolidated
operating income
68
mHRK
capital investment
in 2022
145
mHRK
consolidated
EBITDA
6
business
segments
2.339
employees on
31.12.2022
6
countries
Key business indicators
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
7
4
4.1. HISTORY AND INCORPORATION
CIAK Group d.d., Zagreb (formerly named Direkt d.o.o., “the
Company”) is incorporated in the Republic of Croatia on 14
January 1999.
The main activities of the Company and its subsidiaries (together
referred to as “the Group”) comprise wholesale and retail of
automotive parts as well as waste management, and their
beginnings of business date back to 1994.
CIAK Group d.d. as a parent company owns a number of
subsidiaries as shown in part "Organizational structure of the
Group" and the term "Group" hereinafter means CIAK Group d.d.
as a parent company together with subsidiaries.
The Group is headquartered in Zagreb, Croatia, Savska Opatovina
36.
By the decision on legal transformation of 27 December 2019, the
Company was transformed from a limited liability company into
a joint stock company which was registered at the Commercial
Court in Zagreb on 2 January 2020 and the Company changed its
name to CIAK Group d.d.
Management of the Zagreb Stock Exchange d.d. brought on
29 December 2020 Decision on listing on the Ocial Market of
19,751,989 ordinary shares of CIAK Group d.d. with headquarters
in Zagreb, OIB: 28466564680, without nominal amount, mark:
CIAK, ISIN: HRCIAKRA0007.
The rst day of trading with nancial instruments determined by
the Decision of the Zagreb Stock Exchange d.d. was 4 January
2021.
Organizational structure of CIAK Group
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
8
5
MANAGEMENT BOARD
SUPERVISORY BOARD
Corporate governance
5. ADMINISTRATIVE, MANAGING AND SUPERVISORY AUTHORITIES
IVAN LEKO,
President of the Management Board
DOMINIK LEKO,
Member of the Management Board
DALIBOR BAGARIĆ,
Member of the Management Board
IVICA GREGURAŠ,
Member of the Management Board
IVAN MILOŠ,
Member of the Management Board
In accordance with the Statute, Ciak Group d.d. Management Board may have
at least one and a maximum of ve members. In the event that the Management
Board has more than one member, one of the members must be the Chairman of
the Board representing the company independently and individually, and the other
members together with the President or with another member of the Board. The
management currently consists of ve members, namely:
STJEPAN LJATIFI, President
VJEKOSLAV MESAROŠ, Deputy President
SLAVICA ZRINSKI, Member
ĐURĐICA MEGLAJEC, Member
DAMIR KOS, representative of the workers on the Supervisory Board
ZVONKO MERKAŠ, Member
MARKO VARGA, Member
The Supervisory Board of the Group consists of seven
members, one of whom is the chairman of the Supervisory
Board and one member is the deputy chairman of the
Supervisory Board. Currently, members of the Supervisory
Board are:
The business address of the members of the Management Board and the Supervisory Board is Savska Opatovina 36, Zagreb. The
business address of the members of the Management Board is Savska Opatovina 36, Zagreb.
The General Meeting of the Company consists of the shareholders of CIAK Grupa d.d.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
9
6
Operating results
6.1. CONSOLIDATED PROFIT & LOSS STATEMENT
The consolidated revenues of the CIAK Group in 2022 amounted to HRK 1,716 million or
24% more compared to 2021. Sales revenues increased by 27% or 361 mHRK compared
to the previous year.
EBITDA without one-off items amounts to HRK 146 million and is 24% higher than in 2021.
Financial expenditures realized in 2022 are higher in comparison to 2021 partly as a
result of consolidation effects from inorganic growth which was not entirely covered by
previous reporting period, and partly due to increase in interest expenditures.
In HRK thousands I-XII 2021 I-XII 2022 %
Sales revenues 1,345,336 1,706,484 27
Other operating revenues 35,261 9,732 (72)
Operating revenues 1,380,597 1,716,216 24
Costs of raw materials and consumables 175,608 222,226 27
Amortization 50,739 71,259 40
Staff costs 201,741 286,578 42
Costs of goods sold 761,820 938,449 23
Other costs 94,411 112,362 19
Value adjustments 5,405 12,653 134
Provisions for costs and risks (69) (1,118) 1,520
Operating expenditures 1,289,655 1,642,409 27
Prot / (Loss) from operations 90,942 73,807 (19)
Financial revenues 3,892 4,092 5
Financial expenditures 12,476 15,904 27
Prot / (loss) from nancial activities (8,584) (11,812) 38
Prot / (Loss) of the period 82,358 61,995 (25)
Net prot / (Loss) of the period 70,097 46,136 (34)
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
10
6
6.2. CONSOLIDATED STATEMENT OF FINANCIAL POSITION
In HRK thousands 31.12.2021 31.12.2022 %
TOTAL ASSETS
Fixed assets
Intangible assets 57,702 66,258 15
Real estate, plant and equipment 326,747 360,895 10
Loans and deposits given 2,542 2,388 (6)
Investment in holdings, securities and other xed nancial
assets
2,260 2,302 2
Receivables 2,072 1,909 (8)
Deferred tax assets 2,169 2,720 25
Total xed assets 393,492 436,472 11
Current assets
Inventories 536,920 636,508 19
Customer receivables 209,298 234,978 12
Other receivables 23,693 17,674 (25)
Loans and deposits given 11,436 3,397 (70)
Cash & cash equivalents 75,546 105,954 40
Total current assets 856,893 998,511 17
Prepaid expenses and accrued revenues 28,369 30,848 9
Total assets 1,278,754 1,465,831 15
EQUITY AND LIABILITIES
Equity and reserves
Initial equity 197,520 197,520 0
Capital reserves 184,634 184,634 0
Other reserves (2,800) 259 (109)
Retained prot / (Loss brought forward) 37,602 70,603 88
Prot / (Loss) of the period 69,694 45,553 (35)
Minority interest 8 (93) (1,263)
Total equity 486,658 498,476 2
Provisions 911 57 (94)
Long-term liabilities
Long-term liabilities for loans and deposits 301,717 275,751 (9)
Other long-term liabilities 295 127 (57)
Deferred tax liability 5,989 5,875 (2)
Total long-term liabilities 308,001 281,753 (9)
Short-term liabilities
Liabilities for bank's and other creditor's loans 110,676 196,506 78
Liabilities to suppliers 288,458 387,842 34
Taxes and similar liabilities 48,446 60,895 26
Other short-term liabilities 18,823 17,748 (6)
Liabilities to employees 11,398 15,446 36
Total short-term liabilities 477,801 678,437 42
Accruals and deferred income 5,383 7,108 32
Total liabilities 792,096 967,355 22
Total equity and liabilities 1,278,754 1,465,831 15
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
11
6
Long term assets of the Group is greater by 11% or HRK 43 million
in comparison to nal balance of the previous year, mostly due
to the continuous realization of capital investments.
Cash and cash equivalent position is HRK 106 million on 31
December 2022 which is 40% more than it was on 31 December
2021, when it was amounted to HRK 75.5 million.
The inventory turnover ratio is higher in comparison with the
previous reporting period primarily as the result of continuous
operational inventory management, supply chains and,
consequently, sales.
The asset turnover ratio is growing in 2022, primarily as the
result of operations growth and higher sales revenues.
The receivables ratio is in growth compared to the previous
year, which implies a stable collection of receivables during
2022 despite external environment .
With the continuation of the further realization of the planned
acquisitions, the net debt did not increase signicantly in
2022, and as of 31 December 2022 is HRK 366.3 million. The Net
debt/EBITDA ratio is at almost the same level compared to the
previous year and amounts to 2.53, which is signicantly below
the possible rates at the consolidated level.
Gearing ratio on 31 December 2022 is 42% and reects a
stable level of capitalization of the company in relation to its
indebtedness.
8,00
7,00
6,00
5,00
4,00
3,00
2,00
1,00
0
2021. 2022.
2.51
2.68
1.08
1.19
1.79
1.47
6.43
7.26
6.3. FINANCIAL INDICATORS
Inventory
turnover ratio
Asset
turnover ratio
Current
liquiditiy ratio
Receivables
turnover ratio
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
12
7. CIAK GROUP SUCCESSFULLY INTEGRATED
ACQUISITIONS FROM THE PREVIOUS PERIOD AND
CONTINUED WITH FURTHER GROWTH
7
During 2022, CIAK Group continued the development cycle started in 2021, i.e. the phase of
expanding its business and sales network in accordance with strategic business plans. The
acquisitions realized during 2021 were successfully integrated, where the business of six acquired
companies were successfully integrated into the operation of the CIAK Group.
In 2022, CIAK Group continued its development through organic and inorganic growth. Additionally,
four companies in three countries were acquired in 2022, primarily in the IAM segment, i.e. the auto
parts segment.
Organic growth and development of its own retail network in foreign markets was an additional focus
of the Group in 2022, therefore business development continued through organic development and
the opening of new branches in almost all markets where the Group is present.
Through the implementation of these activities, CIAK Group continued to achieve key strategic
goals and consolidate the market, thereby additionally establishing its role on the regional market
and developing a base for further development of CIAK Group's business.
Key events
for the period up to december 31, 2022
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
13
8
The Group carries out the majority of its business through
its own companies on the markets of the Republic
of Croatia, Bosnia and Herzegovina, the Republic of
Serbia, the Republic of Slovenia, Montenegro and North
Macedonia. This has laid a solid base for further business
development and the continuation of the strategy of
consolidation of the independent aftermarket market in
markets that are still insuciently consolidated.
The CIAK Group maintains a high diversication of risk and
business sustainability through continuous operations in
6 segments (Car parts, Oil batteries, etc., Freight program,
Recycling, Waste management and Wholesale). The two
main business divisions – the IAM division (Independent
Aftermarket), which refers to the distribution of spare
parts and equipment) and the Ecology division.
The strength of the CIAK Group comes from long-term
partnerships with key suppliers of the IAM sector and from
the strategy of consolidating the still unconsolidated IAM
markets, which is recognized as a major trend within the
EU region.
We have been following the stable development of the
Ecology Division for over 20 years, thanks to well-laid
foundations: gathering knowledge through cooperation
with the largest European companies in the eld of
hazardous waste management and adhering to the highest
standards of work.
The synergy effect with the IAM business division enables
capillary access to raw materials throughout the region
and an ecient segment of Battery Recycling.
Markets, customers,
products and services
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
14
8
Distribution of car parts as a business segment includes the purchase and sale of car parts on
the IAM market, i.e. car parts for sale to customers who do not visit authorized service networks
(OES). The standard range includes brakes, lters, wipers, shock absorbers, lights, suspension
parts, etc., but also parts such as batteries, tires, oils, antifreeze, chemistry etc.
Business in this segment began in 2013, and over the years the Group has acquired existing
smaller companies that already had their own sales parts for auto parts in the territory of the
Republic of Croatia. In parallel with the above acquisitions, the Group opened its own sales
units. Regional expansion in the Auto parts segment began more intensively after the IPO in
2021, and CIAK Group's strategic goal is to become the leading distributor of auto parts in the
so-called Adria region.
Customers from the segment of distribution of car parts are mostly legal entities and crafts, and
the largest percentage of customers are service centres, mechanics, small resellers and other.
In the Republic of Croatia, the IAM market has grown signicantly in the last six years due to the
growth of used vehicles compared to new vehicles, and thus the older vehicle eet where there
is an increased need for auto parts. In addition, the major supply chain crisis made it impossible
to quickly deliver new vehicles and additionally had an impact on the increase in the number of
used vehicles compared to new ones, as well as on the average age of the vehicle eet.
In the remaining markets, after the initial inorganic expansion through acquisitions made
during 2021, strong organic growth continued in every market where CIAK Group companies are
present. Accordingly, there was a strong overall growth of the Group's revenue in the auto parts
segment.
8.1. CAR PARTS
OVERVIEW OF CIAK GROUP SEGMENTS AND DIVISIONS
IAM
ECOLOGY
WHOLESALE (Other)
Car parts
Freight
program
Batteries,
oils, etc
Recycling
Waste
management
Wholesale
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
15
8
Distribution of batteries, oils, etc. includes the sale of batteries, industrial batteries, oils,
lubricants and other automotive supplies such as brooms, additives, etc. (all together the so-called
consumables). CIAK Group is the leading distributor of batteries in the Republic of Croatia, Bosnia
and Herzegovina, the Republic of Serbia and the Republic of North Macedonia, and is also present as
a leader in the markets of the Montenegro and the Republic of Slovenia.
In addition, it is the largest authorized distributor of many world manufacturers of batteries and
accumulators and the rst company in the Republic of Croatia that also disposes and recycles waste
lead-acid batteries.
The most signicant product is CIAK Starter batteries, which occupy about 30% of the battery market in the
Republic of Croatia, which gives the Group a leading market share in this part of sales. The main advantage
of the Group is the developed network of authorized battery repairers (350), i.e. stations in the region.
About 75% of sales of the main product group, i.e. batteries, relate to the sale of own brands (mostly
CIAK Starter battery products), while the rest relates to pre-sales of products from other manufacturers
or other private labels. Suppliers from this segment are also signicant customers from the Ecology
Division, where the Group sells lead ingots for batteries as a raw material, and procures nished
batteries, showing an outstanding example of a sustainable circular economy in the Republic of Croatia.
The expansion of the sales network in the Auto parts segment also contributes to a signicant
increase in the sales potential of the Battery, oil, etc. segment, which the CIAK Group effectively
used during 2022 and will continue to further increase its market share in all remaining markets and
through the channels of its own companies present in the independent aftermarket.
The freight program segment includes the purchase and sale of parts for trucks, work machines
and other commercial vehicles in the IAM market.
Apart from the market of the Republic of Croatia, the CIAK Group is also present on the markets of
Bosnia and Herzegovina, the Republic of Serbia and the Republic of Slovenia.
In 2014, the Group opened three existing companies operating in the Republic of Croatia to this
division. In addition to the above acquisitions, growth has been achieved through organic means,
i.e. the establishment of new companies. The Group currently has a leading share in the market
of the Republic of Croatia and is among the few in the Republic of Croatia that combines the car
and freight program for the IAM market in a signicant volume of business. The largest part of
revenues in the segment of the freight program was generated from the distribution of parts for
trucks, while revenues from parts for buses and off-road machinery were represented to a lesser
extent.
A typical range includes brakes, lters, wipers, shock absorbers, lights, suspension parts, etc., but
also batteries, tires, oils, antifreeze, accessories, etc. (so-called consumables).
The direct import of all parts for commercial vehicles enables the provision of the best truck
service and the shortest time for the purchase of spare parts. The buyers of this segment are
mostly legal entities and craftsmen such as trucking companies, large eet customers, mechanical
workshops, smaller resellers and the like.
8.2. BATTERIES OILS, ETC
8.3. FREIGHT PROGRAM
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
16
8
Recycling includes the recycling of industrial waste batteries and accumulators. Companies based
outside the Republic of Croatia only collect or purchase old batteries, while in the Republic of Croatia
they are also directly recycled.
The CIAK Group sets an example of a sustainable circular economy where environmental, economic and
development goals are aligned.
At the Recycling Centre for Accumulators and Batteries in Zabok, the Group produces processed lead
alloys (ingots), plastic and acid by processing components of old batteries - including the sorting and
hydro separation processes of 90-95% of batteries – i.e. components for the production of new batteries.
The CIAK Group is currently the only one to have developed a closed system for the recycling of
accumulators and batteries in the Republic of Croatia.
The business model of this segment is set in such a way that the raw materials obtained after the
recycling process are sold to foreign customers who are also battery manufacturers. The same buyers of
raw materials sell ready-made new batteries to the Group as suppliers in the battery and oil distribution
segment, based on a multi-year cooperation agreement.
In its facilities, the CIAK Group uses state-of-the-art technology and state-of-the-art production
methods, and all recycling processes comply with industry and environmental standards. In addition,
the Group resells surplus purchased batteries that cannot be recycled due to the current capacity of the
Recycling Centre.
Battery purchase is done in two ways:
(i) active (B2B) in collection stations and mechanics, end-users with a larger rolling stock, and,
(ii) passive (B2C) through the "old for new" model, where the Group uses its own retail and service partner
network, which consists of a total of 350 redemption points, making it the largest redemption network
in the region.
Revenues in this segment are largely externally inuenced by the market price of lead (the so-called LME
Lead Index, English: London Metal Exchange Lead Index), while the quantities of purchased batteries
are subject to the company's business decision.
Although the past year brought great challenges in this segment, in which natural gas is used as the
basic fuel for production, the CIAK Group managed to effectively manage this segment during 2022 with
an active policy of managing sales prices and optimizing energy performance.
Waste management includes the activity of collection, transport, recovery and disposal of hazardous and
non-hazardous waste, including supervision of these procedures, as well as subsequent maintenance of
disposal sites, the activity of remediation of contaminated sites and industrial plants.
The CIAK Group manages over 30,000 tons of hazardous and non-hazardous waste per year. The Group
has experience in the management of all types and categories of waste, and has a maximum capacity of
over 70 thousand tons per year.
The company has established cooperation with over 2,000 economic entities, from which it takes
over, transports, processes and disposes of hazardous and non-hazardous waste on a daily basis. The
collected waste is partly treated independently, and where this is not possible, the waste is transported
to unrelated companies that have their own facilities for processing the remaining waste, and all
hazardous waste is transported to foreign incinerators.
8.4. RECYCLING
8.5. WASTE MANAGAMENT
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
17
8
OVERVIEW OF LOCATIONS AND MARKETS BY
BUSINESS SEGMENTS
Car parts Recycling
Batteries, oils, etc Waste management
Freight program Wholesale
8.6. WHOLESALE
The Group's entry into the waste management market began in 2000 at the former Waste Management Centre in Vojnić,
and is signicantly developing with the Greeneld investment for the construction of a Waste Management Centre at the
Zabok site.
The CIAK Group is establishing the only Freon centre where it receives controlled substances and / or oured greenhouse
gases from refrigeration and air conditioning equipment, heat pumps, re protection systems and re extinguishers
from authorized repairers. CIAK Group is also establishing its own testing laboratory as a natural sequence of performing
activities of remediation of contaminated sites and industrial plants.
Activities in this segment are regulated in detail by law and under the supervision of the competent state bodies regarding
the adequacy of waste disposal.
The CIAK Group has a leading share in the waste management market in this segment.
Wholesale (other) as a business segment includes wholesale of car supplies, textiles and garden program.
The Group has been in this segment since the beginning of the 2000s, when it was primarily engaged in the wholesale of
car accessories.
In this area of business, the Group has established cooperation with large retail chains in the Republic of Croatia, which
are signicant customers in this segment.
The goods are mostly procured directly from the manufacturer, so the Group is the main distributor of private battery
brands to large retail chains through its own battery and oil distribution segment.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
18
Main risks and uncertainties
to which the group is exposed
9
9.1. CURRENCY RISK MANAGEMENT
The Group's currency risk is associated with possible signicant changes in the exchange rate of foreign
currencies that are signicant for the Group's operations. This risk relates to the movement of the exchange
rate of the euro (EUR), the convertible mark (BAM), the Serbian dinar (RSD) and the North Macedonian
denar (MKD) , due to the fact that the Group operates on foreign markets (Republic of Slovenia, Bosnia and
Herzegovina, Montenegro, Republic of North Macedonia and the Republic of Serbia) and most transactions
with foreign customers and suppliers is denominated in the specied currencies. A signicant part of the
Group's monetary liabilities to credit institutions is denominated in euros (EUR). As of 31 December 2022,
the total share of the Group's monetary liabilities denominated in euros to credit institutions in relation to all
monetary liabilities of the Group denominated in euros is approximately 85%.
On 01 January 2023. The Republic of Croatia joined the Monetary Union and introduced the euro as the national
currency. This eliminated the currency risk denominated in euros, which was linked to the kuna.
The Group, as much as possible, applies natural risk protection based on the principle that the combination of
currencies in the debt portfolio reects the currency position of free cash ow and, in addition to credits and
loans denominated in EUR, it also uses credits denominated in HRK. Through the sales price policy, the Group
corrects possible negative effects of exchange rate changes.
In addition, the Group manages operational currency risks with a combination of other instruments, such as
payments before maturity and exchange rate negotiations with commercial banks.
The Group is exposed to interest rate risk as it borrows at both xed and variable interest rates. On 31 December
2022, of the total debt of the Group on which interest is accrued, the share of debt (principal) of the Group on
which interest is accruing at variable rates is approximately 69%. Most of these variable interest rates are
linked to reference interest rates such as EURIBOR.
The Group does not speculate on the movement of interest rates, so it primarily chooses a variable interest
rate. The Group actively and continuously monitors changes and projections of interest rates and continuously
renances credit obligations in accordance with current market conditions.
9.2. THE GROUP'S EXPOSURE TO INTEREST RATE RISK
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
19
9
Credit risk is the risk of non-payment or non-performance of contractual obligations by the
Group's customers. Overdue trade receivables have a negative impact on the Group's liquidity,
and overdue adjusted receivables also have a negative impact on the Group's nancial result.
In relationship with customers, activities are carried out in order to protect against the risk
of collection of receivables. Customers are assessed according to creditworthiness, nancial
indicators, and in accordance with the obtained data and previous experience with customers,
credit conditions are dened.
For categorization of customers and determination of credit conditions, data from ocial
nancial reports of customers and ratings of independent credit rating agencies are used.
The exposure analysis is performed continuously and the credit exposure is monitored and
controlled through credit limits that are changed and re-evaluated at least once a year. The
Group collects payment security instruments from customers, wherever possible, in order
to minimize possible credit risks due to non-payment of contractual obligations. Part of the
customers, especially large customers of certain business segments (e.g. ecology, recycling)
are also suppliers of the Group where regular bilateral sett-offs are carried out. This minimizes
credit risk in this area.
The Group operates with a large number of customers of various activities and sizes, which
disperses the risk, i.e. it is not concentrated on a smaller number of customers. Part of the
deferred sale of goods refers to state institutions and buyers in state ownership, and in the
ownership of local self-government, which do not submit payment security instruments.
9.3. THE GROUP'S EXPOSURE TO CREDIT RISK
Group manages liquidity risk by maintaining and utilizing adequate reserves and credit facili-
ties. Also, Group continuously monitors and manages of due dates of receivables and liabilities,
continuously comparing planned and actual cash ows. Additionally, through working capital
management and inventory level optimization, the company makes maximum use of liquidity
potential.
9.4. GROUP'S EXPOSURE TO LIQUIDITY RISK
AND CASH FLOW RISK
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
20
Ownership structure
10
OWNERSHIP STRUCTURE - ON 31 DECEMBER 2022
ERSTE & STEIERMARKISCHE BANK d.d.
PBZ CO OMF kategore B
Skrbnički račun
Ivan Leko Ljilja Leko
HPB d.d.
FOND ZA FINANCIRANJE RAZGRADNJE NEK
Skrbnički račun
OTP BANKA d.d.
AZ OMF kategore B
Skrbnički račun
OTP BANKA d.d.
ERSTE PLAVI OMF kategore B
Skrbnički račun
ZAGREBAČKA BANKA d.d.
AZ PROFIT ODMF
Skrbnički račun
RAIFFEISENBANK AUSTRIA d.d.
RAIFFEISEN DMF
Skrbnički račun
A.P.I. METALI d.o.o.
OTP BANKA d.d.
AZ OMF kategore A
Skrbnički račun
50,57% 16,10%
9,52% 4,34% 4,32%
3,43% 3,31% 1,65%
1,01%
0,79%
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
21
11
Consolidated nancial statements
of CIAK Grupa d.d.
11.1. CONSOLIDATED PROFIT & LOSS STATEMENT
Item
ADP
code
Same period of the
previous year
Current period
1 2 3 4
I OPERATING INCOME (ADP 002 to 006) 001 1,380,597,899 1,716,214,457
1 Income from sales with undertakings within the group 002 0 0
2 Income from sales (outside group) 003 1,345,335,227 1,706,483,265
3 Income from the use of own products, goods and services 004 0 0
4 Other operating income with undertakings within the group 005 0 0
5 Other operating income (outside the group) 006 35,262,672 9,731,192
II OPERATING EXPENSES (ADP 08+009+013+017+018+019+022+029) 007 1,289,655,682 1,642,406,781
1 Changes in inventories of work in progress and nished goods 008 0 0
2 Material costs (ADP 010 to 011) 009 937,428,613 1,160,675,241
a) Costs of raw material 010 175,608,163 222,226,316
b) Costs of goods sold 011 761,820,450 938,448,925
c) Other external costs 012 0 0
3 Staff costs (ADP 014 to 016) 013 201,741,182 286,578,767
a) Net salaries and wages 014 130,040,648 190,125,977
b) Tax and contributions from salaries expenses 015 59,997,083 76,702,385
c) Contributions on salaries 016 11,703,451 19,750,405
4 Depreciation 017 50,739,019 71,258,857
5 Other expenses 018 94,410,851 112,358,741
6 Value adjustments (ADP 020+021) 019 5,404,939 12,653,001
a) xed assets other than nancial assets 020 0 0
b) current assets other than nancial assets 021 5,404,939 12,653,001
7 Provisions (ADP 023 to 028) 022 -68,922 -1,117,826
a) Provisions for pensions, termination benets and similar obligations 023 0 0
b) Provisions for tax liabilities 024 0 0
c) Provisions for ongoing legal cases 025 0 0
d) Provisions for renewal of natural resources 026 0 0
e) Provisions for warranty obligations
027 -256,400 -3,157
f) Other provisions 028 187,478 -1,114,669
8 Other operating expenses 029 0 0
III FINANCIAL INCOME (ADP 031 to 040) 030 3,891,471 4,091,754
1 Income from investments in holdings (shares) of undertakings within the group 031 0 0
2 Income from investments in holdings (shares) of companies linked by virtue of participating interest 032 0 0
3 Income from other long-term nancial investment and loans granted to undertakings within the group 033 0 0
4 Other interest income from operations with undertakings within the group 034 0 0
5 Exchange rate differences and other nancial income from operations with undertakings within the group 035 0 0
6 Income from other long-term nancial investments and loans 036 0 0
7 Other interest income 037 156,959 224,227
8 Exchange rate differences and other nancial income 038 3,454,810 3,860,936
9 Unrealised gains (income) from nancial assets 039 0 0
10 Other nancial income 040 279,702 6,591
IV FINANCIAL EXPENDITURE (ADP 042 to 048) 041 12,475,764 15,904,218
1 Interest expenses and similar expenses with undertakings within the group 042 0 0
2 Exchange rate differences and other expenses from operations with undertakings within the group 043 0 0
3 Interest expenses and similar expenses 044 6,434,441 10,253,404
4 Exchange rate differences and other expenses 045 5,317,880 5,647,552
5 Unrealised losses (expenses) from nancial assets 046 716,413 0
6 Value adjustments of nancial assets (net) 047 0 0
7 Other nancial expenses 048 7,030 3,262
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
22
11
Item
ADP
code
Same period of the
previous year
Current period
1 2 3 4
V SHARE IN PROFIT FROM COMPANIES LINKED BY VIRTUE OF PARTICIPATING INTEREST 049 0 0
VI SHARE IN PROFIT FROM JOINT VENTURES 050 0 0
VII SHARE IN LOSS OF COMPANIES LINKED BY VIRTUE OF PARTICIPATING INTEREST 051 0 0
VIII SHARE IN LOSS OF JOINT VENTURES 052 0 0
IX TOTAL INCOME (ADP 001+030+049 +050) 053 1,384,489,370 1,720,306,211
X TOTAL EXPENDITURE (ADP 007+041+051 + 052) 054 1,302,131,446 1,658,310,999
XI PRE-TAX PROFIT OR LOSS (ADP 053-054) 055 82,357,924 61,995,212
1 Pre-tax prot (ADP 053-054) 056 82,357,924 61,995,212
2 Pre-tax loss (ADP 054-053) 057 0 0
XII INCOME TAX 058 12,261,341 15,859,222
XIII PROFIT OR LOSS FOR THE PERIOD (ADP 055-059) 059 70,096,583 46,135,990
1 Prot for the period (ADP 055-059) 060 70,096,583 46,135,990
2 Loss for the period (ADP 059-055) 061 0 0
DISCONTINUED OPERATIONS
XIV PRE-TAX PROFIT OR LOSS OF DISCONTINUED OPERATIONS (ADP 063-064) 062 0 0
1 Pre-tax prot from discontinued operations 063 0 0
2 Pre-tax loss on discontinued operations 064 0 0
XV INCOME TAX OF DISCONTINUED OPERATIONS 065 0 0
1 Discontinued operations prot for the period (ADP 062-065) 066 0 0
2 Discontinued operations loss for the period (ADP 065-062) 067 0 0
TOTAL OPERATIONS
XVI PRE-TAX PROFIT OR LOSS (ADP 055-062) 068 0 0
1 Pre-tax prot (ADP 068) 069 0 0
2 Pre-tax loss (ADP 068) 070 0 0
XVII INCOME TAX (ADP 058-065) 071 0 0
XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 068-071) 072 0 0
1 Prot for the period (ADP 068-071) 073 0 0
2 Loss for the period (ADP 071-068) 074 0 0
APPENDIX to the P&L
XIX PROFIT OR LOSS FOR THE PERIOD (ADP 076-077) 075 70,096,583 46,135,990
1 Attributable to owners of the parent 076 70,113,303 46,236,622
2 Attributable to minority (non-controlling) interest 077 -16,720 -100,632
STATEMENT OF OTHER COMPRHENSIVE INCOME
I PROFIT OR LOSS FOR THE PERIOD 078 70,096,583 46,135,990
II OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX (ADP 080-087) 079 -419,000 -683,000
III Items that will not be reclassied to prot or loss (ADP 081 do 085) 080 0 0
1 Changes in revaluation reserves of xed tangible and intangible assets 081 0 0
2 Gains or losses from subsequent measurement of equity instruments at fair value through
other comprehensive income
082 0 0
3 Fair value changes of nancial liabilities at fair value through statement of prot or loss,
attributable to changes in their credit risk
083 0 0
4 Actuarial gains/losses on the dened benet obligation 084 0 0
5 Other items that will not be reclassied 085 0 0
6 Income tax relating to items that will not be reclassied 086 0 0
IV Items that may be reclassied to prot or loss (ADP 088 do 095) 087 -419,000 -683,000
1 Exchange rate differences from translation of foreign operations 088 -419,000 -683,000
2 Gains or losses from subsequent measurement of debt securities at fair value through
other comprehensive income
089 0 0
3 Prot or loss arising from effective cash ow hedging 090 0 0
4 Prot or loss arising from effective hedge of a net investment in a foreign operation 091 0 0
5 Share in other comprehensive income/loss of companies linked by virtue of participating
interests
092 0 0
6 Changes in fair value of the time value of option 093 0 0
7 Changes in fair value of forward elements of forward contracts 094 0 0
8 Other items that may be reclassied to prot or loss 095 0 0
9 Income tax relating to items that may be reclassied to prot or loss 096 0 0
V NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 080+087 - 086 - 096) 097 -419,000 -683,000
VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 078+097) 098 69,677,583 45,452,990
APPENDIX to the Statement on comprehensive income
VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 100+101) 099 69,677,583 45,452,990
1 Attributable to owners of the parent 100 69,694,303 45,553,622
2 Attributable to minority (non-controlling) interest 101 -16,720 -100,632
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
23
11.2. CONSOLIDATED STATEMENT OF FINANCIAL POSITION
11
Item
ADP
code
Last day of the preceding
business year
At the reporting date of the
current period
1 2 3 4
A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID 001 0 0
B) FIXED ASSETS (ADP 003+010+020+031+036) 002 393,491,881 436,472,546
I INTANGIBLE ASSETS (ADP 004 to 009) 003 57,702,139 66,257,953
1 Research and development 004 0 0
2 Concessions, patents, licences, trademarks, software and other rights 005 55,228,268 56,491,567
3 Goodwill 006 0 4,304,867
4 Advance payments for purchase of intangible assets 007 48,926 46,656
5 Intangible assets in preparation 008 360,378 462,030
6 Other intangible assets 009 2,064,567 4,952,833
II TANGIBLE ASSETS (ADP 011 to 019) 010 326,746,507 360,895,220
1 Land 011 42,451,120 58,609,496
2 Buildings 012 64,610,056 59,216,924
3 Plant and equipment 013 42,739,213 46,150,110
4 Tools, working inventory and transportation assets 014 17,903,691 16,274,201
5 Biological assets 015 0 0
6 Advance payments for purchase of tangible assets 016 664,162 90,000
7 Tangible assets in preparation 017 19,042,254 24,977,863
8 Other tangible assets 018 139,336,011 155,576,626
9 Investment property 019 0 0
III FIXED FINANCIAL ASSETS (ADP 021 to 030) 020 4,802,266 4,690,201
1 Investments in holdings (shares) of undertakings within the group 021 0 0
2 Investments in other securities of undertakings within the group 022 0 0
3 Loans, deposits, etc. to undertakings within the group 023 0 0
4 Investments in holdings (shares) of companies linked by virtue of participating interest 024 0 0
5 Investment in other securities of companies linked by virtue of participating interest
025 0 0
6 Loans, deposits etc. given to companies linked by virtue of participating interest 026 0 0
7 Investments in securities 027
0 0
8 Loans, deposits, etc. given 028 2,542,140 2,387,846
9 Other investments accounted for using the equity method 029 2,260,126 2,302,355
10 Other xed nancial assets 030 0 0
IV RECEIVABLES (ADP 032 to 035) 031
2,071,672 1,909,299
1 Receivables from undertakings within the group 032 0 0
2 Receivables from companies linked by virtue of participating interests 033
0 0
3 Customer receivables 034 2,071,672 1,909,299
4 Other receivables 035
0 0
V DEFERRED TAX ASSETS 036 2,169,297 2,719,873
C) CURRENT ASSETS (ADP 038+046+053+063) 037
856,892,642 998,511,167
I INVENTORIES (ADP 039 to 045) 038 536,919,107 636,506,951
1 Raw materials
039 26,945,179 34,647,296
2 Work in progress 040 0 0
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
24
11
Item
ADP
code
Last day of the preceding
business year
At the reporting date of
the current period
1 2 3 4
3 Finished goods 041 0 0
4 Merchandise 042 501,667,603 594,965,766
5 Advance payments for inventories 043 6,685,492 4,725,207
6 Fixed assets held for sale 044 1,620,833 2,168,682
7 Biological assets 045 0 0
II RECEIVABLES (ADP 047 to 052) 046 232,991,304 252,652,669
1 Receivables from undertakings within the group 047 0 0
2 Receivables from companies linked by virtue of participating interest 048 0 0
3 Customer receivables 049 209,298,210 234,978,437
4 Receivables from employees and members of the undertaking 050 545,241 683,293
5 Receivables from government and other institutions 051 16,718,598 11,094,751
6 Other receivables 052 6,429,255 5,896,188
III SHORT-TERM FINANCIAL ASSETS (ADP 054 to 062) 053 11,435,806 3,397,303
1 Investments in holdings (shares) of undertakings within the group 054 0 0
2 Investments in other securities of undertakings within the group 055 0 0
3 Loans, deposits, etc, to undertakings within the group 056 0 0
4 Investments in holdings (shares) of companies linked by virtue of participating interest 057 0 0
5 Investment in other securities of companies linked by virtue of participating interest 058 0 0
6 Loans, deposits etc, given to companies linked by virtue of participating interest 059 0 0
7 Investments in securities 060 0 0
8 Loans, deposits, etc. given 061 11,435,806 3,397,303
9 Other nancial assets 062 0 0
IV CASH AT BANK AND IN HAND 063 75,546,425 105,954,244
D) PREPAID EXPENSES AND ACCRUED INCOME 064 28,369,451 30,847,858
E) TOTAL ASSETS (ADP 001+002+037+064) 065 1,278,753,974 1,465,831,571
F) OFF-BALANCE SHEET ITEMS 066 0 0
LIABILITIES
A) CAPITAL AND RESERVES (ADP 068 do 070+076+077+083+086+089) 067 486,657,693 498,476,320
I INITIAL (SUBSCRIBED) CAPITAL 068 197,519,890 197,519,890
II CAPITAL RESERVES 069 184,634,250 184,634,250
III RESERVES FROM PROFIT (ADP 071+072-073+074+075) 070 -2,800,000 258,214
1 Legal reserves 071 0 1,864,164
2 Reserves for treasury shares 072 0 80,000
3 Treasury shares and holdings (deductible item) 073 -2,800,000 -1,685,950
4 Statutory reserves 074 0 0
5 Other reserves 075 0 0
IV REVALUATION RESERVES 076 0 0
V FAIR VALUE RESERVES AND OTHER (ADP 078 to 082) 077 0 0
1 Financial assets at fair value through other comprehensive income (i.e. available for sale) 078 0 0
2 Cash ow hedge - effective portion 079 0 0
3 Hedge of a net investment in a foreign operation - effective portion 080 0 0
4 Other fair value reserves 081 0 0
5 Exchange differences arising from the translation of foreign operations (consolidation) 082 0 0
VI RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 084-085) 083 37,600,852 70,602,625
1 Retained prot 084 37,600,852 70,602,625
2 Loss brought forward 085 0 0
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
25
11
Item
ADP
code
Last day of the preceding
business year
At the reporting date of
the current period
1 2 3 4
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 087-088) 086 69,694,303 45,553,622
1 Prot for the business year 087 69,694,303 45,553,622
2 Loss for the business year 088 0 0
VIII MINORITY (NON-CONTROLLING) INTEREST 089 8,398 -92,281
B) PROVISIONS (ADP 091 to 096) 090 911,457 56,997
1 Provisions for pensions, termination benets and similar obligations 091 0 0
2 Provisions for tax liabilities 092 0 0
3 Provisions for ongoing legal cases
093 0 0
4 Provisions for renewal of natural resources 094 0 0
5 Provisions for warranty obligations 095
911,457 56,997
6 Other provisions 096 0 0
C) LONG-TERM LIABILITIES (ADP 098 to 108) 097
308,000,660 281,752,732
1 Liabilities towards undertakings within the group 098 0 0
2 Liabilities for loans, deposits, etc, to companies within the group 099
0 0
3 Liabilities towards companies linked by virtue of participating interest 100 0 0
4 Liabilities for loans, deposits etc, of companies linked by virtue of participating interest 101
0 0
5 Liabilities for loans, deposits etc. 102 90,802,691 86,909,993
6 Liabilities towards banks and other nancial institutions 103 210,914,044 188,840,629
7 Liabilities for advance payments 104 0 5,534
8 Liabilities towards suppliers 105 284,187 121,579
9 Liabilities for securities 106 0 0
10 Other long-term liabilities 107 10,707 0
11 Deferred tax liability 108 5,989,031 5,874,997
D) SHORT-TERM LIABILITIES (ADP 110 to 123) 109 477,801,444 678,437,448
1 Liabilities towards undertakings within the group 110 0 0
2 Liabilities for loans, deposits, etc, to companies within the group 111 0 0
3 Liabilities towards companies linked by virtue of participating interest 112 0 0
4 Liabilities for loans, deposits etc. of companies linked by virtue of participating interest 113 0 0
5 Liabilities for loans, deposits etc. 114 28,379,665 37,336,956
6 Liabilities towards banks and other nancial institutions 115 82,295,399 159,168,222
7 Liabilities for advance payments 116 1,963,951 3,466,232
8 Liabilities towards suppliers 117 288,457,743 387,842,625
9 Liabilities for securities 118 0 0
10 Liabilities towards employees 119 11,398,242 15,446,444
11 Taxes, contributions and similar liabilities 120 48,446,390 60,894,881
12 Liabilities arising from the share in the result 121 0 0
13 Liabilities arising from xed assets held for sale 122 0 0
14 Other short-term liabilities 123 16,860,054 14,282,088
E) ACCRUALS AND DEFERRED INCOME 124 5,382,720 7,108,074
F) TOTAL – LIABILITIES (ADP 067+090+097+109+124) 125 1,278,753,974 1,465,831,571
G) OFF-BALANCE SHEET ITEMS 126 0 0
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
26
11
11.3. CONSOLIDATED STATEMENT OF CASH FLOW
Item
ADP
code
Same period of the
previous year
Current period
1 2 3 4
Cash ow from operating activities
1 Pre-tax prot 001 82,357,924 61,995,212
2 Adjustments (ADP 003 to 010): 002 37,617,183 88,189,653
a) Depreciation 003 50,739,019 71,258,856
b) Gains and losses from sale and value adjustment of xed tangible and intangible assets 004 1,095,111 -2,333,406
c) Gains and losses from sale and unrealised gains and losses and value adjustment of nancial assets 005 3,133,023 12,653,000
d) Interest and dividend income 006 -156,959 -224,227
e) Interest expenses 007 6,434,441 10,253,404
f) Provisions 008 630,583 -854,460
g) Exchange rate differences (unrealised) 009 609,548 -2,391,854
h) Other adjustments for non-cash transactions and unrealised gains and losses 010 -24,867,583 -171,660
I Cash ow increase or decrease before changes in the working capital (ADP 001+002) 011 119,975,107 150,184,865
3 Changes in the working capital (ADP 013 to 016) 012 -66,322,348 -1,943,118
a) Increase or decrease in short-term liabilities 013 96,037,827 109,804,021
b) Increase or decrease in short-term receivables 014 -47,077,543 -17,533,174
c) Increase or decrease in inventories 015 -115,282,632 -94,213,965
d) Other increase or decrease in the working capital 016 0 0
II Cash from operations (ADP 011+012) 017 53,652,759 148,241,747
4 Interest paid 018 -5,178,853 -4,794,198
5 Income tax paid 019 -3,551,842 -15,779,632
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019) 020 44,922,064 127,667,917
Cash ow from investment activities
1 Cash receipts from sales of xed tangible and intangible assets 021 599,875 2,131,340
2 Cash receipts from sales of nancial instruments 022 0 0
3 Interest received 023 0 0
4 Dividends received 024 0 0
5 Cash receipts from repayment of loans and deposits 025 1,989,326 0
6 Other cash receipts from investment activities 026 0 0
III Total cash receipts from investment activities (ADP 021 to 026) 027 2,589,201 2,131,340
1 Cash payments for the purchase of xed tangible and intangible assets 028 -61,234,236 -41,856,211
2 Cash payments for the acquisition of nancial instruments 029 -3,050,000 0
3 Cash payments for loans and deposits for the period 030 0 -837,000
4 Acquisition of a subsidiary, net of cash acquired 031 -138,332,222 -5,640,177
5 Other cash payments from investment activities 032 -670,032 0
IV UTotal cash payments from investment activities (ADP 028 to 032) 033 -203,286,490 -48,333,388
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027+033) 034 -200,697,289 -46,202,048
Cash ow from nancing activities
1 Cash receipts from the increase of initial (subscribed) capital 035 0 0
2 Cash receipts from the issue of equity nancial instruments and debt nancial instruments 036 0 0
3 Cash receipts from credit principals, loans and other borrowings 037 130,292,354 102,661,533
4 Other cash receipts from nancing activities 038 0 0
V Total cash receipts from nancing activities (ADP 035 to 038) 039 130,292,354 102,661,533
1 Cash payments for the repayment of credit principals, loans and other borrowings and debt nancial
instruments
040 -65,405,223 -66,516,852
2 Dividends paid 041 0 -34,843,238
3 Cash payments for nance lease 042 -32,363,475 -51,353,543
4 Cash payments for the redemption of treasury shares and decrease of initial (subscribed) capital 043 -599,000 -1,005,950
5 Other cash payments from nancing activities 044 0 0
VI Total cash payments from nancing activities (ADP 040 to 044) 045 -98,367,698 -153,719,583
C) NET CASH FLOW FROM FINANCING ACTIVITIES 046 31,924,656 -51,058,050
1 Unrealised exchange rate differences in cash and cash equivalents 047 0 0
D) NET INCREASE OR DECREASE OF CASH FLOWS (ADP 020+034+046+047) 048 -123,850,569 30,407,819
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF PERIOD 049 199,396,994 75,546,425
F) CASH AND CASH EQUIVALENTS AT THE END OF PERIOD (ADP 048+049) 050 75,546,425 105,954,244
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
27
11
11.4. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Item
ADP
code
Attributable to owners of the parent
Initial
(subscribed)
capital
Capital
reserves
Legal
reserves
Reserves
for
treasury
shares
Treasury
shares and
holdings
(deductible
item)
Statutory
reserves
Other
reserves
Revaluation
reserves
Fair value of
nancial assets
through other
comprehensive
income
(available
for sale)
1 2 3 4 5 6 7 8 9 10 11
Previous period
1 Balance on the rst day of the previous
business year
01 197,519,890 184,762,638 0 0 0 0 0 0 0
2 Changes in accounting policies 02 0 0 0 0 0 0 0 0 0
3 Correction of errors 03 0 0 0 0 0 0 0 0 0
4. Balance on the rst day of the previous
business year (restated) (ADP 01 to 03)
04 197,519,890 184,762,638 0 0 0 0 0 0 0
5 Prot/loss of the period 05 0 0 0 0 0 0 0 0 0
6 Exchange rate differences from translation of
foreign operations
06 0 0 0 0 0 0 0 0 0
7 Changes in revaluation reserves of xed
tangible and intangible assets
07 0 0 0 0 0 0 0 0 0
8 Gains or losses from subsequent measurement
of nancial assets at fair value through other
comprehensive income (available for sale)
08 0 0 0 0 0 0 0 0 0
9 Gains or losses on ecient cash ow hedging 09 0 0 0 0 0 0 0 0 0
10 Gains or losses arising from effective hedge of a
net investment in a foreign operation
10 0 0 0 0 0 0 0 0 0
11 Share in other comprehensive income/loss
of companies linked by virtue of participating
interest
11 0 0 0 0 0 0 0 0 0
12 Actuarial gains/losses on dened benet
plans
12 0 0 0 0 0 0 0 0 0
13 Other changes in equity unrelated to owners 13 0 -128,388 0 0 0 0 0 0 0
14 Tax on transactions recognised directly in
equity
14 0 0 0 0 0 0 0 0 0
15 Increase/decrease in initial (subscribed) capital
(other than from reinvesting prot and other
than arising from the pre-bankruptcy settlement
procedure)
15 0 0 0 0 0 0 0 0 0
16 Decrease in initial (subscribed) capital arising
from the pre-bankruptcy settlement procedure
16 0 0 0 0 0 0 0 0 0
17 Decrease in initial (subscribed) capital arising
from the reinvestment of prot
17 0 0 0 0 0 0 0 0 0
18 Redemption of treasury shares/holdings 18 0 0 0 0 2,800,000 0 0 0 0
19 Payments from members/shareholders 19 0 0 0 0 0 0 0 0 0
20 Payment of share in prot/dividend 20 0 0 0 0 0 0 0 0 0
21 Other distributions and payments to
members/shareholders
21 0 0 0 0 0 0 0 0 0
22 Transfer to reserves according to the annual
schedule
22 0 0 0 0 0 0 0 0 0
23 Increase in reserves arising from the pre-
bankruptcy settlement procedure
23 0 0 0 0 0 0 0 0 0
24 Balance on the last day of the previous
business year reporting period (ADP 04 to 23)
24 197,519,890 184,634,250 0 0 2,800,000 0 0 0 0
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY
I OTHER COMPREHENSIVE INCOME OF THE
PREVIOUS PERIOD, NET OF TAX (ADP 06 to 14)
25 0 -128,388 0 0 0 0 0 0 0
II COMPREHENSIVE INCOME OR LOSS FOR THE
PREVIOUS PERIOD (ADP 05+25)
26 0 -128,388 0 0 0 0 0 0 0
III TRANSACTIONS WITH OWNERS IN THE
PREVIOUS PERIOD RECOGNISED DIRECTLY IN
EQUITY (ADP 15 to 23)
27 0 0 0 0 2,800,000 0 0 0 0
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
28
11
Item
ADP
code
Attributable to owners of the parent
Initial
(subscribed)
capital
Capital
reserves
Legal
reserves
Reserves
for
treasury
shares
Treasury
shares and
holding
(deductible
item)
Statutory
reserves
Other
reserves
Revaluation
reserves
Fair value of
nancial assets
through other
comprehensive
income
(available
for sale)
1 2 3 4 5 6 7 8 9 10 11
Current period
1 Balance on the rst day of the current
business year
28 197,519,890 184,634,250 0 0 2,800,000 0 0 0 0
2 Changes in accounting policies 29 0 0 0 0 0 0 0 0 0
3 Correction of errors 30 0 0 0 0 0 0 0 0 0
4. Balance on the rst day of the current
business year (restated) (ADP 28 to 30)
31 197,519,890 184,634,250 0 0 2,800,000 0 0 0 0
5 Prot/loss of the period 32 0 0 0 0 0 0 0 0 0
6 Exchange rate differences from translation of
foreign operations
33 0 0 0 0 0 0 0 0 0
7 Changes in revaluation reserves of xed
tangible and intangible assets
34 0 0 0 0 0 0 0 0 0
8 Gains or losses from subsequent measurement
of nancial assets at fair value through other
comprehensive income (available for sale)
35 0 0 0 0 0 0 0 0 0
9 Gains or losses on ecient cash ow hedging 36 0 0 0 0 0 0 0 0 0
10 Gains or losses arising from effective hedge of
a net investment in a foreign operation
37 0 0 0 0 0 0 0 0 0
11 Share in other comprehensive income/loss
of companies linked by virtue of participating
interest
38 0 0 0 0 0 0 0 0 0
12 Actuarial gains/losses on dened benet
plans
39 0 0 0 0 0 0 0 0 0
13 Other changes in equity unrelated to owners 40 0 0 0 2,200,000 0 0 0 0 0
14 Tax on transactions recognised directly in
equity
41 0 0 0 0 0 0 0 0 0
15 Decrease in initial (subscribed) capital (other
than arising from the pre-bankruptcy settlement
procedure or from the reinvestment of prot)
42 0 0 0 0 0 0 0 0 0
16 Decrease in initial (subscribed) capital arising
from the pre-bankruptcy settlement procedure
43 0 0 0 0 0 0 0 0 0
17 Increase of initial (subscribed) capital arising
from the pre-bankruptcy settlement procedure
44 0 0 0 0 0 0 0 0 0
18 Redemption of treasury shares/holdings 45 0 0 0 0 1,005,950 0 0 0 0
19 Payments from members/shareholders 46 0 0 0 0 0 0 0 0 0
20 Payment of share in prot/dividend 47 0 0 0 0 0 0 0 0 0
21 Other distributions and payments to
members/shareholders
48 0 0 0 -2,120,000 -2,120,000 0 0 0 0
22 Carryforward per annual plan 49 0 0 1,864,164 0 0 0 0 0 0
23 Increase in reserves arising from the pre-
bankruptcy settlement procedure
50 0 0 0 0 0 0 0 0 0
24 Balance on the last day of the previous
business year reporting period (ADP 31 to 50)
51 197,519,890 184,634,250 1,864,164 80,000 1,685,950 0 0 0 0
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY
I OTHER COMPREHENSIVE INCOME FOR THE
CURRENT PERIOD, NET OF TAX (ADP 33 to 41)
52 0 0 0 2,200,000 0 0 0 0 0
II COMPREHENSIVE INCOME OR LOSS FOR THE
CURRENT PERIOD (ADP 32 to 52)
53 0 0 0 2,200,000 0 0 0 0 0
III TRANSACTIONS WITH OWNERS IN THE
CURRENT PERIOD RECOGNISED DIRECTLY IN
EQUITY (ADP 42 to 50)
54 0 0 1,864,164 -2,120,000 -1,114,050 0 0 0 0
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
29
11
Item
ADP
code
Attributable to owners of the parent
Minority (non-
controlling)
interest
Total capital
and reserves
Cash ow
hedge -
effective
portion
Hedge of a net
investment in
a foreign
operation
- effective
portion
Other
fair value
reserves
Exchange rate
differences
from
translation
of foreign
operations
Retained
prot / loss
brought
forward
Prot/loss
for the
business
year
Total
attributable
to owners
of the parent
1 2 12 13 14 15 16 17
18 (3 to 6 - 7 + 8
to 17)
19 20 (18+19)
Previous period
1 Balance on the rst day of the
previous business year
01 0 0 0 0 11,152,077 26,447,162 419,881,767 3,828,938 423,710,705
2 Changes in accounting policies 02 0 0 0 0 0 0 0 0 0
3 Correction of errors 03 0 0 0 0 0 0 0 0 0
4. Balance on the rst day of the
previous business year (restated)
(ADP 01 to 03)
04 0 0 0 0 11,152,077 26,447,162 419,881,767 3,828,938 423,710,705
5 Prot/loss of the period 05 0 0 0 0 0 69,694,303 69,694,303 -16,720 69,677,583
6 Exchange rate differences from
translation of foreign operations
06 0 0 0 0 0 0 0 0 0
7 Changes in revaluation reserves of
xed tangible and intangible assets
07 0 0 0 0 0 0 0 0 0
8 Gains or losses from subsequent
measurement of nancial assets at fair
value through other comprehensive
income (available for sale)
08 0 0 0 0 0 0 0 0 0
9 Gains or losses on ecient cash ow
hedging
09 0 0 0 0 0 0 0 0 0
10 Gains or losses arising from effective
hedge of a net investment in a foreign
operation
10 0 0 0 0 0 0 0 0 0
11 Share in other comprehensive
income/loss of companies linked by
virtue of participating interest
11 0 0 0 0 0 0 0 0 0
12 Actuarial gains/losses on dened
benet plans
12 0 0 0 0 0 0 0 0 0
13 Other changes in equity unrelated
to owners
13 0 0 0 0 1,613 0 -126,775 -3,803,820 -3,930,595
14 Tax on transactions recognised
directly in equity
14 0 0 0 0 0 0 0 0 0
15 Increase/decrease in initial
(subscribed) capital (other than from
reinvesting prot and other than arising
from the pre-bankruptcy settlement
procedure)
15 0 0 0 0 0 0 0 0 0
16 Decrease in initial (subscribed)
capital arising from the pre-bankruptcy
settlement procedure
16 0 0 0 0 0 0 0 0 0
17 Decrease in initial (subscribed) capital
arising from the reinvestment of prot
17 0 0 0 0 0 0 0 0 0
18 Redemption of treasury shares/
holdings
18 0 0 0 0 0 0 -2,800,000 0 -2,800,000
19 Payments from members/
shareholders
19 0 0 0 0 0 0 0 0 0
20 Payment of share in prot/dividend 20 0 0 0 0 0 0 0 0 0
21 Other distributions and payments to
members/shareholders
21 0 0 0 0 0 0 0 0 0
22 Transfer to reserves according to
the annual schedule
22 0 0 0 0 26,447,162 -26,447,162 0 0 0
23 Increase in reserves arising from the
pre-bankruptcy settlement procedure
23 0 0 0 0 0 0 0 0 0
24 Balance on the last day of the
previous business year reporting period
(ADP 04 to 23)
24 0 0 0 0 37,600,852 69,694,303 486,649,295 8,398 486,657,693
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY
I OTHER COMPREHENSIVE INCOME OF
THE PREVIOUS PERIOD, NET OF TAX
(ADP 06 to 14)
25 0 0 0 0 1,613 0 -126,775 -3,803,820 -3,930,595
II COMPREHENSIVE INCOME OR LOSS
FOR THE PREVIOUS PERIOD (ADP 05+25)
26 0 0 0 0 1,613 69,694,303 69,567,528 -3,820,540 65,746,988
III TRANSACTIONS WITH OWNERS IN
THE PREVIOUS PERIOD RECOGNISED
DIRECTLY IN EQUITY (ADP 15 to 23)
27 0 0 0 0 26,447,162 -26,447,162 -2,800,000 0 -2,800,000
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
30
11
Item
ADP
code
Attributable to owners of the parent
Minority
(non-
controlling)
interest
Total capital
and reserves
Cash ow
hedge -
effective
portion
Hedge of a net
investment in
a foreign
operation
- effective
portion
Other
fair value
reserves
Exchange rate
differences
from
translation
of foreign
operations
Retained
prot / loss
brought
forward
Prot/loss
for the
business
year
Total
attributable
to owners
of the parent
1 2 12 13 14 15 16 17
18 (3 to 6 - 7 + 8
to 17)
19 20 (18+19)
Current period
1 Balance on the rst day of the
current business year
28 0 0 0 0 37,600,852 69,694,303 486,649,295 8,398 486,657,693
2 Changes in accounting policies 29 0 0 0 0 0 0 0 0 0
3 Correction of errors 30 0 0 0 0 0 0 0 0 0
4. Balance on the rst day of the current
business year (restated) (ADP 28 to 30)
31 0 0 0 0 37,600,852 69,694,303 486,649,295 8,398 486,657,693
5 Prot/loss of the period 32 0 0 0 0 0 45,764,622 45,764,622 -100,632 45,663,990
6 Exchange rate differences from
translation of foreign operations
33 0 0 0 0 0 0 0 -47 -47
7 Changes in revaluation reserves of
xed tangible and intangible assets
34 0 0 0 0 0 0 0 0 0
8 Gains or losses from subsequent
measurement of nancial assets at fair
value through other comprehensive
income (available for sale)
35 0 0 0 0 0 0 0 0 0
9 Gains or losses on ecient cash ow
hedging
36 0 0 0 0 0 0 0 0 0
10 Gains or losses arising from effective
hedge of a net investment in a foreign
operation
37 0 0 0 0 0 0 0 0 0
11 Share in other comprehensive
income/loss of companies linked by
virtue of participating interest
38 0 0 0 0 0 0 0 0 0
12 Actuarial gains/losses on dened
benet plans
39 0 0 0 0 0 0 0 0 0
13 Other changes in equity unrelated
to owners
40 0 0 0 0 -2,198,345 0 1,655 0 1,655
14 Tax on transactions recognised
directly in equity
41 0 0 0 0 0 0 0 0 0
15 Decrease in initial (subscribed)
capital (other than arising from the
pre-bankruptcy settlement procedure or
from the reinvestment of prot)
42 0 0 0 0 0 0 0 0 0
16 Decrease in initial (subscribed)
capital arising from the pre-bankruptcy
settlement procedure
43 0 0 0 0 0 0 0 0 0
17 Increase of initial (subscribed)
capital arising from the pre-bankruptcy
settlement procedure
44 0 0 0 0 0 0 0 0 0
18 Redemption of treasury shares/holdings 45 0 0 0 0 0 0 -1,005,950 0 -1,005,950
19 Payments from members/
shareholders
46 0 0 0 0 0 0 0 0 0
20 Payment of share in prot/dividend 47 0 0 0 0 -34,961,021 0 -34,961,021 0 -34,961,021
21 Other distributions and payments to
members/shareholders
48 0 0 0 0 2,120,000 0 2,120,000 0 2,120,000
22 Carryforward per annual plan 49 0 0 0 0 67,830,139 -69,694,303 0 0 0
23 Increase in reserves arising from the
pre-bankruptcy settlement procedure
50 0 0 0 0 0 0 0 0 0
24 Balance on the last day of the
previous business year reporting
period (ADP 31 to 50)
51 0 0 0 0 70,391,625 45,764,622 498,568,601 -92,281 498,476,320
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY
I. OTHER COMPREHENSIVE INCOME
FOR THE CURRENT PERIOD, NET OF
TAX (AOP 33 to 41)
52 0 0 0 0 -2,198,345 0 1,655 -47 1,608
II. COMPREHENSIVE INCOME OR LOSS
FOR THE CURRENT PERIOD (AOP 32
to 52)
53 0 0 0 0 -2,198,345 45,764,622 45,766,277 -100,679 45,665,598
III. TRANSACTIONS WITH OWNERS IN
THE CURRENT PERIOD RECOGNISED
DIRECTLY IN EQUITY (AOP 42 to 50)
54 0 0 0 0 34,989,118 -69,694,303 -33,846,971 0 -33,846,971
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
31
12
Unconsolidated nancial statements
of CIAK Grupa d.d.
12.1. UNCONSOLIDATED PROFIT & LOSS STATEMENT
Item
ADP
code
Same period of the
previous year
Current period
1 2 3 4
I OPERATING INCOME (ADP 002 to 006) 001 17,582,996 27,574,309
1 Income from sales with undertakings within the group 002 17,519,888 27,154,506
2 Income from sales (outside group) 003 26,571 22,005
3 Income from the use of own products, goods and services 004 0 0
4 Other operating income with undertakings within the group 005 1,575 42
5 Other operating income (outside the group) 006 34,962 397,756
II OPERATING EXPENSES (ADP 08+009+013+017+018+019+022+029) 007 17,061,668 32,191,450
1 Changes in inventories of work in progress and nished goods 008 0 0
2 Material costs (ADP 010 to 011) 009 310,802 503,523
a) Costs of raw material 010 310,802 503,523
b) Costs of goods sold 011 0 0
c) Other external costs 012 0 0
3 Staff costs (ADP 014 to 016) 013 11,847,655 22,047,207
a) Net salaries and wages 014 6,554,839 11,053,976
b) Tax and contributions from salaries expenses 015 4,053,159 6,477,476
c) Contributions on salaries 016 1,239,657 4,515,755
4 Depreciation 017 75,341 1,806,997
5 Other expenses 018 4,821,814 7,734,967
6 Value adjustments (ADP 020+021) 019 0 0
a) xed assets other than nancial assets 020 0 0
b) current assets other than nancial assets 021 0 0
7 Provisions (ADP 023 to 028) 022 6,056 98,756
a) Provisions for pensions, termination benets and similar obligations 023 0 0
b) Provisions for tax liabilities 024 0 0
c) Provisions for ongoing legal cases 025 0 0
d) Provisions for renewal of natural resources 026 0 0
e) Provisions for warranty obligations
027 0 0
f) Other provisions 028 6,056 98,756
8 Other operating expenses 029 0 0
III FINANCIAL INCOME (ADP 031 to 040) 030 38,517,931 36,082,312
1 Income from investments in holdings (shares) of undertakings within the group 031 26,981,718 30,679,161
2 Income from investments in holdings (shares) of companies linked by virtue of participating interest 032 0 0
3 Income from other long-term nancial investment and loans granted to undertakings within the group 033 4,604,891 5,385,003
4 Other interest income from operations with undertakings within the group 034 0 0
5 Exchange rate differences and other nancial income from operations with undertakings within the group 035 186 13,662
6 Income from other long-term nancial investments and loans 036 0 0
7 Other interest income 037 598 2,271
8 Exchange rate differences and other nancial income 038 14,119 2,215
9 Unrealised gains (income) from nancial assets 039 0 0
10 Other nancial income 040 6,916,419 0
IV FINANCIAL EXPENDITURE (ADP 042 to 048) 041 33,824 144,048
1 Interest expenses and similar expenses with undertakings within the group 042 4,200 44,885
2 Exchange rate differences and other expenses from operations with undertakings within the group 043 1,884 16,091
3 Interest expenses and similar expenses 044 692 73,784
4 Exchange rate differences and other expenses 045 27,048 9,288
5 Unrealised losses (expenses) from nancial assets 046 0 0
6 Value adjustments of nancial assets (net) 047 0 0
7. Other nancial expenses 048 0 0
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
32
12
Item
ADP
code
Same period of the
previous year
Current period
1 2 3 4
V SHARE IN PROFIT FROM COMPANIES LINKED BY VIRTUE OF PARTICIPATING INTEREST 049 0 0
VI SHARE IN PROFIT FROM JOINT VENTURES 050 0 0
VII SHARE IN LOSS OF COMPANIES LINKED BY VIRTUE OF PARTICIPATING INTEREST 051 0 0
VIII SHARE IN LOSS OF JOINT VENTURES 052 0 0
IX TOTAL INCOME (ADP 001+030+049 +050) 053 56,100,927 63,656,621
X TOTAL EXPENDITURE (ADP 007+041+051 + 052) 054 17,095,492 32,335,498
XI PRE-TAX PROFIT OR LOSS (ADP 053-054) 055 39,005,435 31,321,123
1 Pre-tax prot (ADP 053-054) 056 39,005,435 31,321,123
2 Pre-tax loss (ADP 054-053) 057 0 0
XII INCOME TAX 058 2,123,177 206,245
XIII PROFIT OR LOSS FOR THE PERIOD (ADP 055-059) 059 36,882,258 31,114,878
1 Prot for the period (ADP 055-059) 060 36,882,258 31,114,878
2 Loss for the period (ADP 059-055) 061 0 0
DISCONTINUED OPERATIONS
XIV PRE-TAX PROFIT OR LOSS OF DISCONTINUED OPERATIONS (ADP 063-064) 062 0 0
1 Pre-tax prot from discontinued operations 063 0 0
2 Pre-tax loss on discontinued operations 064 0 0
XV INCOME TAX OF DISCONTINUED OPERATIONS 065 0 0
1 Discontinued operations prot for the period (ADP 062-065) 066 0 0
2 Discontinued operations loss for the period (ADP 065-062) 067 0 0
TOTAL OPERATIONS
XVI PRE-TAX PROFIT OR LOSS (ADP 055-062) 068 0 0
1 Pre-tax prot (ADP 068) 069 0 0
2 Pre-tax loss (ADP 068) 070 0 0
XVII INCOME TAX (ADP 058-065) 071 0 0
XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 068-071) 072 0 0
1 Prot for the period (ADP 068-071) 073 0 0
2 Loss for the period (ADP 071-068) 074 0 0
APPENDIX to the P&L
XIX PROFIT OR LOSS FOR THE PERIOD (ADP 076-077) 075 0 0
1 Attributable to owners of the parent 076 0 0
2 Attributable to minority (non-controlling) interest 077 0 0
STATEMENT OF OTHER COMPRHENSIVE INCOME
I PROFIT OR LOSS FOR THE PERIOD 078 36,882,258 31,114,878
II OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX (ADP 080+087) 079 0 0
III Items that will not be reclassied to prot or loss (ADP 081 to 085) 080 0 0
1 Changes in revaluation reserves of xed tangible and intangible assets 081 0 0
2 Gains or losses from subsequent measurement of equity instruments at fair value through
other comprehensive income
082 0 0
3 Fair value changes of nancial liabilities at fair value through statement of prot or loss,
attributable to changes in their credit risk
083 0 0
4 Actuarial gains/losses on the dened benet obligation 084 0 0
5 Other items that will not be reclassied 085 0 0
6 Income tax relating to items that will not be reclassied 086 0 0
IV Items that may be reclassied to prot or loss (ADP 088 to 095) 087 0 0
1 Exchange rate differences from translation of foreign operations 088 0 0
2 Gains or losses from subsequent measurement of debt securities at fair value through
other comprehensive income
089 0 0
3 Prot or loss arising from effective cash ow hedging 090 0 0
4 Prot or loss arising from effective hedge of a net investment in a foreign operation 091 0 0
5 Share in other comprehensive income/loss of companies linked by virtue of participating
interests
092 0 0
6 Changes in fair value of the time value of option 093 0 0
7 Changes in fair value of forward elements of forward contracts 094 0 0
8 Other items that may be reclassied to prot or loss 095 0 0
9 Income tax relating to items that may be reclassied to prot or loss 096 0 0
V NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 080+087 - 086 - 096) 097
0 0
VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 078+097) 098 36,882,258 31,114,878
APPENDIX to the Statement on comprehensive income
VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 100+101) 099 0 0
1 Attributable to owners of the parent 100 0 0
2 Attributable to minority (non-controlling) interest 101 0 0
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
33
12
12.2. UNCONSOLIDATED STATEMENT OF FINANCIAL POSITION
Item
ADP
code
Last day of the preceding
business year
At the reporting date of the
current period
1 2 3 4
A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID 001 0 0
B) FIXED ASSETS (ADP 003+010+020+031+036) 002 408,333,749 402,916,990
I INTANGIBLE ASSETS (ADP 004 to 009) 003 27,900 212,678
1 Research and development 004 0 0
2 Concessions, patents, licences, trademarks, software and other rights 005 27,900 133,649
3 Goodwill 006 0 0
4 Advance payments for purchase of intangible assets 007 0 0
5 Intangible assets in preparation 008 0 79,029
6 Other intangible assets 009 0 0
II TANGIBLE ASSETS (ADP 011 to 019) 010 10,299,398 14,676,889
1 Land 011 0 11,044,642
2 Buildings 012 0 0
3 Plant and equipment 013 311,312 262,954
4 Tools, working inventory and transportation assets 014 21,667 45,773
5 Biological assets 015 0 0
6 Advance payments for purchase of tangible assets 016 0 0
7 Tangible assets in preparation 017 9,966,419
0
8 Other tangible assets 018 0 161,754
9 Investment property 019 0 3,161,766
III FIXED FINANCIAL ASSETS (ADP 021 to 030) 020 398,006,451 387,447,089
1 Investments in holdings (shares) of undertakings within the group 021 199,305,009 224,982,441
2 Investments in other securities of undertakings within the group 022 0 0
3 Loans, deposits, etc. to undertakings within the group 023 198,701,442 162,446,648
4 Investments in holdings (shares) of companies linked by virtue of participating interest 024 0 0
5 Investment in other securities of companies linked by virtue of participating interest
025 0 0
6 Loans, deposits etc. given to companies linked by virtue of participating interest 026 0 0
7 Investments in securities 027
0 0
8 Loans, deposits, etc. given 028 0 18,000
9 Other investments accounted for using the equity method 029 0 0
10 Other xed nancial assets 030 0 0
IV RECEIVABLES (ADP 032 to 035) 031
0 0
1 Receivables from undertakings within the group 032 0 0
2 Receivables from companies linked by virtue of participating interests 033
0 0
3 Customer receivables 034 0 0
4 Other receivables 035
0 0
V DEFERRED TAX ASSETS 036 0 580,334
C) CURRENT ASSETS (ADP 038+046+053+063) 037
42,856,898 48,749,921
I INVENTORIES (ADP 039 to 045) 038 2 0
1 Raw materials
039 2 0
2 Work in progress 040 0 0
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
34
12
Item
ADP
code
Last day of the preceding
business year
At the reporting date of
the current period
1 2 3 4
3 Finished goods 041 0 0
4 Merchandise 042 0 0
5 Advance payments for inventories 043 0 0
6 Fixed assets held for sale 044 0 0
7 Biological assets 045 0 0
II RECEIVABLES (ADP 047 to 052) 046 6,443,538 18,079,863
1 Receivables from undertakings within the group 047 6,185,251 17,303,970
2 Receivables from companies linked by virtue of participating interest 048 0 0
3 Customer receivables 049 53,875 71,394
4 Receivables from employees and members of the undertaking 050 17,109 101,762
5 Receivables from government and other institutions 051 121,522 577,822
6 Other receivables 052 65,781 24,915
III SHORT-TERM FINANCIAL ASSETS (ADP 054 to 062) 053 5,042,191 11,678,475
1 Investments in holdings (shares) of undertakings within the group 054 0 0
2 Investments in other securities of undertakings within the group 055 0 0
3 Loans, deposits, etc. to undertakings within the group 056 5,042,191 11,678,475
4 Investments in holdings (shares) of companies linked by virtue of participating interest 057 0 0
5 Investment in other securities of companies linked by virtue of participating interest 058 0 0
6 Loans, deposits etc. given to companies linked by virtue of participating interest 059 0 0
7 Investments in securities 060 0 0
8 Loans, deposits, etc. given 061 0 0
9 Other nancial assets 062 0 0
IV CASH AT BANK AND IN HAND 063 31,371,167 18,991,583
D) PREPAID EXPENSES AND ACCRUED INCOME 064 342,650 70,635
E) TOTAL ASSETS (ADP 001+002+037+064) 065 451,533,297 451,737,546
F) OFF-BALANCE SHEET ITEMS 066 0 0
LIABILITIES
A) CAPITAL AND RESERVES (ADP 068 do 070+076+077+081+084+087) 067 434,770,179 432,250,087
I INITIAL (SUBSCRIBED) CAPITAL 068 197,519,890 197,519,890
II CAPITAL RESERVES 069 202,778,150 202,778,150
III RESERVES FROM PROFIT (ADP 071+072-073+074+075) 070 -2,779,949 258,214
1 Legal reserves 071 20,051 1,864,164
2 Reserves for treasury shares 072 0 80,000
3 Treasury shares and holdings (deductible item) 073 -2,800,000 -1,685,950
4 Statutory reserves 074 0 0
5 Other reserves 075 0 0
IV REVALUATION RESERVES 076 0 0
V FAIR VALUE RESERVES AND OTHER (ADP 078 to 082) 077 0 0
1 Financial assets at fair value through other comprehensive income (i.e. available for sale) 078 0 0
2 Cash ow hedge - effective portion 079 0 0
3 Hedge of a net investment in a foreign operation - effective portion 080 0 0
4 Other fair value reserves 081 0 0
5 Exchange differences arising from the translation of foreign operations (consolidation) 082 0 0
VI RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 084-085) 083 369,830 578,955
1 Retained prot 084 369,830 578,955
2 Loss brought forward 085 0 0
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
35
12
Item
ADP
code
Last day of the preceding
business year
At the reporting date of
the current period
1 2 3 4
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 087-088) 086 36,882,258 31,114,878
1 Prot for the business year 087 36,882,258 31,114,878
2 Loss for the business year 088 0 0
VIII MINORITY (NON-CONTROLLING) INTEREST 089 0 0
B) PROVISIONS (ADP 091 to 096) 090 0 0
1 Provisions for pensions, termination benets and similar obligations 091 0 0
2 Provisions for tax liabilities 092 0 0
3 Provisions for ongoing legal cases
093 0 0
4 Provisions for renewal of natural resources 094 0 0
5 Provisions for warranty obligations 095 0 0
6 Other provisions 096 0 0
C) LONG-TERM LIABILITIES (ADP 098 to 108) 097 0 7,054,051
1 Liabilities towards undertakings within the group 098 0 0
2 Liabilities for loans, deposits, etc. to companies within the group 099
0 5,800,000
3 Liabilities towards companies linked by virtue of participating interest 100 0 0
4 Liabilities for loans, deposits etc. of companies linked by virtue of participating interest 101 0 0
5 Liabilities for loans, deposits etc. 102 0 1,254,051
6 Liabilities towards banks and other nancial institutions 103 0 0
7 Liabilities for advance payments 104 0 0
8 Liabilities towards suppliers 105 0 0
9 Liabilities for securities 106 0 0
10 Other long-term liabilities 107 0 0
11 Deferred tax liability 108 0 0
D) SHORT-TERM LIABILITIES (ADP 110 to 123) 109 16,629,612 9,340,502
1 Liabilities towards undertakings within the group 110 8,699,829 1,002,938
2 Liabilities for loans, deposits, etc. to companies within the group 111 0 0
3 Liabilities towards companies linked by virtue of participating interest 112 0 0
4 Liabilities for loans, deposits etc. of companies linked by virtue of participating interest 113 0 0
5 Liabilities for loans, deposits etc. 114 0 2,281,275
6 Liabilities towards banks and other nancial institutions 115 0 0
7 Liabilities for advance payments 116 0 0
8 Liabilities towards suppliers 117 306,477 617,059
9 Liabilities for securities 118 0 0
10 Liabilities towards employees 119 663,678 800,636
11 Taxes, contributions and similar liabilities 120 4,564,892 3,384,969
12 Liabilities arising from the share in the result 121 0 0
13 Liabilities arising from xed assets held for sale 122 0 0
14 Other short-term liabilities 123 2,394,736 1,253,625
E) ACCRUALS AND DEFERRED INCOME 124 133,506 3,092,906
F) TOTAL – LIABILITIES (ADP 067+090+097+109+124) 125 451,533,297 451,737,546
G) OFF-BALANCE SHEET ITEMS 126 0 0
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
36
12
Item
ADP
code
Same period of the
previous year
Current period
1 2 3 4
Cash ow from operating activities
1 Pre-tax prot 001 39,005,435 31,321,123
2 Adjustments (ADP 003 to 010): 002 -38,449,751 -34,112,381
a) Depreciation 003 75,341 1,806,997
b) Gains and losses from sale and value adjustment of xed tangible and intangible assets 004 0 17,034
c) Gains and losses from sale and unrealised gains and losses and value adjustment of nancial assets 005 -6,916,419 1,853
d) Interest and dividend income 006 -31,586,609 -36,066,435
e) Interest expenses 007 4,200 118,669
f) Provisions 008 0 0
g) Exchange rate differences (unrealised) 009 -26,264 9,501
h) Other adjustments for non-cash transactions and unrealised gains and losses 010 0 0
I Cash ow increase or decrease before changes in the working capital (ADP 001+002) 011 555,684 -2,791,258
3 Changes in the working capital (ADP 013 to 016) 012 -5,918,906 -7,085,235
a) Increase or decrease in short-term liabilities 013 -220,757 12,644,369
b) Increase or decrease in short-term receivables 014 -5,698,169 -19,729,604
c) Increase or decrease in inventories 015 20 0
d) Other increase or decrease in the working capital 016 0 0
II Cash from operations (ADP 011+012) 017 -5,363,222 -9,876,493
4 Interest paid 018 -50,000 -11,361
5 Income tax paid 019 0 -2,943,216
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019) 020 -5,413,222 -12,831,070
Cash ow from investment activities
1 Cash receipts from sales of xed tangible and intangible assets 021 0 0
2 Cash receipts from sales of nancial instruments 022 0 0
3 Interest received 023 4,229,952 3,881,028
4 Dividends received 024 0 0
5 Cash receipts from repayment of loans and deposits 025 114,695,000 98,877,681
6 Other cash receipts from investment activities 026 0 0
III Total cash receipts from investment activities (ADP 021 to 026) 027 118,924,952 102,758,709
1 Cash payments for the purchase of xed tangible and intangible assets 028 -379,040 -1,460,114
2 Cash payments for the acquisition of nancial instruments 029 -3,050,000 0
3 Cash payments for loans and deposits for the period 030 -256,017,548 -69,542,587
4 Acquisition of a subsidiary, net of cash acquired 031 0 -7,000
5 Other cash payments from investment activities 032 0 0
IV UTotal cash payments from investment activities (ADP 028 to 032) 033 -259,446,588 -71,009,701
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027+033) 034 -140,521,636 31,749,008
Cash ow from nancing activities
1 Cash receipts from the increase of initial (subscribed) capital 035 0 0
2 Cash receipts from the issue of equity nancial instruments and debt nancial instruments 036 0 0
3 Cash receipts from credit principals, loans and other borrowings 037 0 6,300,000
4 Other cash receipts from nancing activities 038 0 0
V Total cash receipts from nancing activities (ADP 035 to 038) 039 0 6,300,000
1 Cash payments for the repayment of credit principals, loans and other borrowings and debt nancial
instruments
040 0 -500,000
2 Dividends paid 041 0 -34,843,238
3 Cash payments for nance lease 042 0 -1,248,334
4 Cash payments for the redemption of treasury shares and decrease of initial (subscribed) capital 043 -599,000 -1,005,950
5 Other cash payments from nancing activities 044 0 0
VI Total cash payments from nancing activities (ADP 040 to 044) 045 -599,000 -37,597,522
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039+045) 046 -599,000 -31,297,522
1 Unrealised exchange rate differences in cash and cash equivalents 047 0 0
D) NET INCREASE OR DECREASE OF CASH FLOWS (ADP 020+034+046+047) 048 -146,533,858 -12,379,584
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF PERIOD 049 177,905,025 31,371,167
F) CASH AND CASH EQUIVALENTS AT THE END OF PERIOD (ADP 048+049) 050 31,371,167 18,991,583
12.3. UNCONSOLIDATED STATEMENT OF CASH FLOW
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
37
12
12.4. UNCONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Item
ADP
code
Attributable to owners of the parent
Initial
(subscribed)
capital
Capital
reserves
Legal
reserves
Reserves
for
treasury
shares
Treasury
shares and
holdings
(deductible
item)
Statutory
reserves
Other
reserves
Revaluation
reserves
Fair value of
nancial assets
through other
comprehensive
income
(available
for sale)
1 2 3 4 5 6 7 8 9 10 11
Previous period
1 Balance on the rst day of the previous
business year
01 197,519,890 202,906,538 13,395 0 0 0 0 0 0
2 Changes in accounting policies 02 0 0 0 0 0 0 0 0 0
3 Correction of errors 03 0 0 0 0 0 0 0 0 0
4, Balance on the rst day of the previous
business year (restated) (ADP 01 to 03)
04 197,519,890 202,906,538 13,395 0 0 0 0 0 0
5 Prot/loss of the period 05 0 0 0 0 0 0 0 0 0
6 Exchange rate differences from translation of
foreign operations
06 0 0 0 0 0 0 0 0 0
7 Changes in revaluation reserves of xed
tangible and intangible assets
07 0 0 0 0 0 0 0 0 0
8 Gains or losses from subsequent measurement
of nancial assets at fair value through other
comprehensive income (available for sale)
08 0 0 0 0 0 0 0 0 0
9 Gains or losses on ecient cash ow hedging 09 0 0 0 0 0 0 0 0 0
10 Gains or losses arising from effective hedge of a
net investment in a foreign operation
10 0 0 0 0 0 0 0 0 0
11 Share in other comprehensive income/loss
of companies linked by virtue of participating
interest
11 0 0 0 0 0 0 0 0 0
12 Actuarial gains/losses on dened benet
plans
12 0 0 0 0 0 0 0 0 0
13 Other changes in equity unrelated to owners 13 0 0 0 0 0 0 0 0 0
14 Tax on transactions recognised directly in
equity
14 0 0 0 0 0 0 0 0 0
15 Increase/decrease in initial (subscribed) capital
(other than from reinvesting prot and other
than arising from the pre-bankruptcy settlement
procedure)
15 0 -128,388 0 0 0 0 0 0 0
16 Decrease in initial (subscribed) capital arising
from the pre-bankruptcy settlement procedure
16 0 0 0 0 0 0 0 0 0
17 Decrease in initial (subscribed) capital arising
from the reinvestment of prot
17 0 0 0 0 0 0 0 0 0
18 Redemption of treasury shares/holdings 18 0 0 0 0 2,800,000 0 0 0 0
19 Payments from members/shareholders 19 0 0 0 0 0 0 0 0 0
20 Payment of share in prot/dividend 20 0 0 0 0 0 0 0 0 0
21 Other distributions and payments to
members/shareholders
21 0 0 0 0 0 0 0 0 0
22 Transfer to reserves according to the annual
schedule
22 0 0 6,656 0 0 0 0 0 0
23 Increase in reserves arising from the pre-
bankruptcy settlement procedure
23 0 0 0 0 0 0 0 0 0
24 Balance on the last day of the previous
business year reporting period (ADP 04 to 23)
24 197,519,890 202,778,150 20,051 0 2,800,000 0 0 0 0
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY
I OTHER COMPREHENSIVE INCOME OF THE
PREVIOUS PERIOD, NET OF TAX (ADP 06 to 14)
25 0 0 0 0 0 0 0 0 0
II COMPREHENSIVE INCOME OR LOSS FOR THE
PREVIOUS PERIOD (ADP 05+25)
26 0 0 0 0 0 0 0 0 0
III TRANSACTIONS WITH OWNERS IN THE
PREVIOUS PERIOD RECOGNISED DIRECTLY IN
EQUITY (ADP 15 to 23)
27 0 -128,388 6,656 0 2,800,000 0 0 0 0
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
38
12
Item
ADP
code
Attributable to owners of the parent
Initial
(subscribed)
capital
Capital
reserves
Legal
reserves
Reserves
for
treasury
shares
Treasury
shares and
holding
(deductible
item)
Statutory
reserves
Other
reserves
Revaluation
reserves
Fair value of
nancial assets
through other
comprehensive
income
(available
for sale)
1 2 3 4 5 6 7 8 9 10 11
Current period
1 Balance on the rst day of the current
business year
28 197,519,890 202,778,150 20,051 0 2,800,000 0 0 0 0
2 Changes in accounting policies 29 0 0 0 0 0 0 0 0 0
3 Correction of errors 30 0 0 0 0 0 0 0 0 0
4. Balance on the rst day of the current
business year (restated) (ADP 28 to 30)
31 197,519,890 202,778,150 20,051 0 2,800,000 0 0 0 0
5 Prot/loss of the period 32 0 0 0 0 0 0 0 0 0
6 Exchange rate differences from translation of
foreign operations
33 0 0 0 0 0 0 0 0 0
7 Changes in revaluation reserves of xed
tangible and intangible assets
34 0 0 0 0 0 0 0 0 0
8 Gains or losses from subsequent measurement
of nancial assets at fair value through other
comprehensive income (available for sale)
35 0 0 0 0 0 0 0 0 0
9 Gains or losses on ecient cash ow hedging 36 0 0 0 0 0 0 0 0 0
10 Gains or losses arising from effective hedge of
a net investment in a foreign operation
37 0 0 0 0 0 0 0 0 0
11 Share in other comprehensive income/loss
of companies linked by virtue of participating
interest
38 0 0 0 0 0 0 0 0 0
12 Actuarial gains/losses on dened benet
plans
39 0 0 0 0 0 0 0 0 0
13 Other changes in equity unrelated to owners 40 0 0 0 2,200,000 0 0 0 0 0
14 Tax on transactions recognised directly in
equity
41 0 0 0 0 0 0 0 0 0
15 Decrease in initial (subscribed) capital (other
than arising from the pre-bankruptcy settlement
procedure or from the reinvestment of prot)
42 0 0 0 0 0 0 0 0 0
16 Decrease in initial (subscribed) capital arising
from the pre-bankruptcy settlement procedure
43 0 0 0 0 0 0 0 0 0
17 Increase of initial (subscribed) capital arising
from the pre-bankruptcy settlement procedure
44 0 0 0 0 0 0 0 0 0
18 Redemption of treasury shares/holdings 45 0 0 0 0 1,005,950 0 0 0 0
19 Payments from members/shareholders 46 0 0 0 0 0 0 0 0 0
20 Payment of share in prot/dividend 47 0 0 0 0 0 0 0 0 0
21 Other distributions and payments to
members/shareholders
48 0 0 0 -2,120,000 -2,120,000 0 0 0 0
22 Carryforward per annual plan 49 0 0 1,844,113 0 0 0 0 0 0
23 Increase in reserves arising from the pre-
bankruptcy settlement procedure
50 0 0 0 0 0 0 0 0 0
24 Balance on the last day of the previous
business year reporting period (ADP 31 to 50)
51 197,519,890 202,778,150 1,864,164 80,000 1,685,950 0 0 0 0
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY
I OTHER COMPREHENSIVE INCOME FOR THE
CURRENT PERIOD, NET OF TAX (ADP 33 to 41)
52 0 0 0 2,200,000 0 0 0 0 0
II COMPREHENSIVE INCOME OR LOSS FOR THE
CURRENT PERIOD (ADP 32 to 52)
53 0
0
0 2,200,000 0 0 0 0 0
III TRANSACTIONS WITH OWNERS IN THE
CURRENT PERIOD RECOGNISED DIRECTLY IN
EQUITY (ADP 42 to 50)
54 0 0 1,844,113 -2,120,000 -1,114,050 0 0 0 0
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
39
12
Item
ADP
code
Attributable to owners of the parent
Minority (non-
controlling)
interest
Total capital
and reserves
Cash ow
hedge -
effective
portion
Hedge of a net
investment in
a foreign
operation
- effective
portion
Other
fair value
reserves
Exchange rate
differences
from
translation
of foreign
operations
Retained
prot / loss
brought
forward
Prot/loss
for the
business
year
Total
attributable
to owners
of the parent
1 2 12 13 14 15 16 17
18 (3 to 6 - 7 + 8
to 17)
19 20 (18+19)
Previous period
1 Balance on the rst day of the
previous business year
01 0 0 0 0 3,938 372,547 400,816,308 0 400,816,308
2 Changes in accounting policies 02 0 0 0 0 0 0 0 0 0
3 Correction of errors 03 0 0 0 0 0 0 0 0 0
4. Balance on the rst day of the previous
business year (restated) (ADP 01 to 03)
04 0 0 0 0 3,938 372,547 400,816,308 0 400,816,308
5 Prot/loss of the period 05 0 0 0 0 0 36,882,258 36,882,258 0 36,882,258
6 Exchange rate differences from
translation of foreign operations
06 0 0 0 0 0 0 0 0 0
7 Changes in revaluation reserves of
xed tangible and intangible assets
07 0 0 0 0 0 0 0 0 0
8 Gains or losses from subsequent
measurement of nancial assets at fair
value through other comprehensive
income (available for sale)
08 0 0 0 0 0 0 0 0 0
9 Gains or losses on ecient cash ow
hedging
09 0 0 0 0 0 0 0 0 0
10 Gains or losses arising from effective
hedge of a net investment in a foreign
operation
10 0 0 0 0 0 0 0 0 0
11 Share in other comprehensive
income/loss of companies linked by
virtue of participating interest
11 0 0 0 0 0 0 0 0 0
12 Actuarial gains/losses on dened
benet plans
12 0 0 0 0 0 0 0 0 0
13 Other changes in equity unrelated
to owners
13 0 0 0 0 365,892 -372,547 -6,655 0 -6,655
14 Tax on transactions recognised
directly in equity
14 0 0 0 0 0 0 0 0 0
15 Increase/decrease in initial (subscribed)
capital (other than from reinvesting prot
and other than arising from the pre-
bankruptcy settlement procedure)
15 0 0 0 0 0 0 -128,388 0 -128,388
16 Decrease in initial (subscribed)
capital arising from the pre-bankruptcy
settlement procedure
16 0 0 0 0 0 0 0 0 0
17 Decrease in initial (subscribed) capital
arising from the reinvestment of prot
17 0 0 0 0 0 0 0 0 0
18 Redemption of treasury shares/holdings 18 0 0 0 0 0 0 -2,800,000 0 -2,800,000
19 Payments from members/
shareholders
19 0 0 0 0 0 0 0 0 0
20 Payment of share in prot/dividend 20 0 0 0 0 0 0 0 0 0
21 Other distributions and payments to
members/shareholders
21 0 0 0 0 0 0 0 0 0
22 Transfer to reserves according to
the annual schedule
22 0 0 0 0 0 0 6,656 0 6,656
23 Increase in reserves arising from the
pre-bankruptcy settlement procedure
23 0 0 0 0 0 0 0 0 0
24 Balance on the last day of the
previous business year reporting period
(ADP 04 to 23)
24 0 0 0 0 369,830 36,882,258 434,770,179 0 434,770,179
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY
I OTHER COMPREHENSIVE INCOME OF
THE PREVIOUS PERIOD, NET OF TAX
(ADP 06 to 14)
25 0 0 0 0 365,892 -372,547 -6,655 0 -6,655
II COMPREHENSIVE INCOME OR LOSS
FOR THE PREVIOUS PERIOD (ADP 05+25)
26 0 0 0 0 365,892 36,509,711 36,875,603 0 36,875,603
III TRANSACTIONS WITH OWNERS IN
THE PREVIOUS PERIOD RECOGNISED
DIRECTLY IN EQUITY (ADP 15 to 23)
27 0 0 0 0 0 0 -2,921,732 0 -2,921,732
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
40
12
Item
ADP
code
Attributable to owners of the parent
Minority (non-
controlling)
interest
Total capital
and reserves
Cash ow
hedge -
effective
portion
Hedge of a net
investment in
a foreign
operation
- effective
portion
Other
fair value
reserves
Exchange rate
differences
from
translation
of foreign
operations
Retained
prot / loss
brought
forward
Prot/loss
for the
business
year
Total
attributable
to owners
of the parent
1 2 12 13 14 15 16 17
18 (3 to 6 - 7 + 8
to 17)
19 20 (18+19)
Current period
1 Balance on the rst day of the
current business year
28 0 0 0 0 369,830 36,882,258 434,770,179 0 434,770,179
2 Changes in accounting policies 29 0 0 0 0 0 0 0 0 0
3 Correction of errors 30 0 0 0 0 0 0 0 0 0
4. Balance on the rst day of the current
business year (restated) (ADP 28 to 30)
31 0 0 0 0 369,830 36,882,258 434,770,179 0 434,770,179
5 Prot/loss of the period 32 0 0 0 0 0 31,114,878 31,114,878 31,114,878
6 Exchange rate differences from
translation of foreign operations
33 0 0 0 0 0 0 0 0 0
7 Changes in revaluation reserves of
xed tangible and intangible assets
34 0 0 0 0 0 0 0 0 0
8 Gains or losses from subsequent
measurement of nancial assets at fair
value through other comprehensive
income (available for sale)
35 0 0 0 0 0 0 0 0 0
9 Gains or losses on ecient cash ow
hedging
36 0 0 0 0 0 0 0 0 0
10 Gains or losses arising from effective
hedge of a net investment in a foreign
operation
37 0 0 0 0 0 0 0 0 0
11 Share in other comprehensive
income/loss of companies linked by
virtue of participating interest
38 0 0 0 0 0 0 0 0 0
12 Actuarial gains/losses on dened
benet plans
39 0 0 0 0 0 0 0 0 0
13 Other changes in equity unrelated
to owners
40 0 0 0 0 -2,200,000 0 0 0 0
14 Tax on transactions recognised
directly in equity
41 0 0 0 0 0 0 0 0 0
15 Decrease in initial (subscribed)
capital (other than arising from the
pre-bankruptcy settlement procedure or
from the reinvestment of prot)
42 0 0 0 0 0 0 0 0 0
16 Decrease in initial (subscribed)
capital arising from the pre-bankruptcy
settlement procedure
43 0 0 0 0 0 0 0 0 0
17 Increase of initial (subscribed)
capital arising from the pre-bankruptcy
settlement procedure
44 0 0 0 0 0 0 0 0 0
18 Redemption of treasury shares/holdings 45 0 0 0 0 0 0 -1,005,950 0 -1,005,950
19 Payments from members/
shareholders
46 0 0 0 0 0 0 0 0 0
20 Payment of share in prot/dividend 47 0 0 0 0 0 -34,961,020 -34,961,020 0 -34,961,020
21 Other distributions and payments to
members/shareholders
48 0 0 0 0 2,332,000 0 2,332,000 0 2,332,000
22 Carryforward per annual plan 49 0 0 0 0 77,125 -1,921,238 0 0 0
23 Increase in reserves arising from the
pre-bankruptcy settlement procedure
50 0 0 0 0 0 0 0 0 0
24 Balance on the last day of the
previous business year reporting
period (ADP 31 to 50)
51 0 0 0 0 578,955 31,114,878 432,250,087 0 432,250,087
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY
I. OTHER COMPREHENSIVE INCOME
FOR THE CURRENT PERIOD, NET OF
TAX (AOP 33 to 41)
52 0 0 0 0 -2,200,000 0 0 0 0
II. COMPREHENSIVE INCOME OR LOSS
FOR THE CURRENT PERIOD (AOP 32
to 52)
53 0 0 0 0 -2,200,000 31,114,878 31,114,878 0 31,114,878
III. TRANSACTIONS WITH OWNERS IN
THE CURRENT PERIOD RECOGNISED
DIRECTLY IN EQUITY (AOP 42 to 50)
54 0 0 0 0 2,409,125 -36,882,258 -33,634,970 0 -33,634,970
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
41
13
13.2. SUSTAINABLE DEVELOPMENT STRATEGY
IN CIAK GROUP
Sustainability at CIAK Group
During 2022, there was no environmental incident in CIAK Group. CIAK Grupa is continuously working
on improving environmental protection and sustainable development. In this sense, the CIAK Grupa
collects waste oils, used car tires, batteries and other hazardous and non-hazardous waste in
appropriate containers and prepared halls. Some of the subsidiaries, among other activities, are
registered to perform waste management activities and for this they have the necessary permits
issued by the competent ministries of the countries where the subsidiaries are based.
13.1. ENVIRONMENTAL PROTECTION
SDG 3
GOOD HEALTH AND WELL-BEING - TO ENSURE A HEALTHY LIFE AND
PROMOTE WELL-BEING FOR PEOPLE OF ALL GENERATIONS
SDG 7
FFORDABLE AND CLEAN ENERGY – TO ENSURE ACCESS TO RELIABLE,
SUSTAINABLE AND MODERN ENERGY AT AFFORDABLE PRICES FOR
EVERYONE
SDG 8
DECENT WORK AND ECONOMIC GROWTH – TO PROMOTE INCLUSIVE AND
SUSTAINABLE ECONOMIC GROWTH, FULL EMPLOYMENT AND DECENT
WORK FOR ALL
SDG 12
RESPONSIBLE CONSUMPTION AND PRODUCTION - TO ENSURE
SUSTAINABLE FORMS OF CONSUMPTION AND PRODUCTION
SDG 13
CLIMATE ACTION - TAKE URGENT ACTIONS IN THE FIGHT AGAINST
CLIMATE CHANGE AND ITS CONSEQUENCES
Management board of CIAK GROUP d.d. and directors of individual companies are responsible
for the implementation of sustainable operations in the group, and tasks related to the
implementation of decisions, goals and reporting are coordinated by the Human Resources
Department, the Occupational Safety Department, the Environmental Protection Department
and the Quality Department.
The Group strives to actively contribute to the global goals for sustainable development of the
United Nations (Sustainable Development Goals, SDGs) which were adopted in 2015 as part of
the 2030 Agenda for Sustainable Development.
The SDGs are rooted in our everyday business and actions, specically relating to following:
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
42
13
Every company within CIAK Group considers health and safety at work. We try to create a good and safe space to work for
our employees and assess all risks of jobs performed by workers and the hazards that are present in the workspace (SDG 3).
We conduct annual health and safety trainings and equip our employees with protective equipment as needed.
Workers’ health and safety are one among the many topics covered in our labour code, which also covers the privacy of
workers, working hours, vacations, and holidays, pay benets and the termination of employment contracts (SDG 8).
As for the environment, we've detected areas that operationally we directly affect. Group-wide energy data is continuously
being collected in order to reduce total energy consumption and CO2 emissions and we continuously research the use of
renewable energy sources for consumption at own real estate and facilities. We are considering replacing and using electric
and alternative drives for our own eet, thus contributing to SDG 7 and SDG 13.
The CIAK Group further plans to offset CO2 emissions, which inevitably arise from eet operations, e.g., by afforestation
measures in the region. In our wholesale and retail operations, we are continuously reducing the use of PVC bags, with the
aim of completely eliminating their use in retail and for receiving goods in our warehouses by 2025. Instead, we will use
alternative materials that are more environmentally friendly. Eliminating the use of PVC bags in our sales operations will
allow us to meet UN and EU targets for plastic bags and support SDG 12. We are a proud ISO 50001-certicate holder.
The principal activities of CIAK comprise wholesale and retail of spare parts
at Independent automotive aftermarket (IAM) as well as waste management.
Waste management within the group is carried out in accordance with the legal
regulations of the country in which the group member operates and includes the
collection of waste oils, used car tires, batteries and other hazardous and non-
hazardous waste in appropriate containers and halls prepared for that purpose.
The entire CIAK Group is involved in the process of collecting waste. The actual
recycling of waste batteries takes place in the company C.I.A.K. d.o.o., which
collects all waste lead batteries collected by CIAK Group members and from other
legal and physical persons in Croatia and its neighbouring countries (SDG 12).
CIAK d.o.o. operates recycling centres in Zabok and is the leading collector and
recycler of batteries in Croatia and the neighbouring regions. In total more than
95% of all lead batteries in Croatia are collected by us and we enable the Republic of
Croatia to entirely full its lead-recycling goals, in accordance with EU regulations.
Furthermore, in order to educate Croatian citizens about the importance and
possibilities of recycling batteries, our goal is to introduce this topic to as many
students, primary school and high school students by 2025. This way we want to
increase awareness on this issue and enable young generations to act responsibly
towards the environment.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
43
13
The greatest value of CIAK Group are its employees, and theirs
safety, needs, motivations, satisfaction and protection were also
managements priority during the 2022. Paying great importance
to responsible and ethical based behaviour in business, the Group
respects the principles of ethics in all its business relations
and acts in accordance with the principles of responsibility,
truthfulness, eciency, transparency and quality.
CIAK Grupa treats business partners, employees and the entire
social and business environment in good faith, respecting good
business practices. We enable the equality of employees on a
daily basis, accepting their diversity, providing them with equal
opportunities for employment, promotion, education and rewards.
13.3. CIAK GROUP'S EMPLOYEES
Broj zaposlenika CIAK Grupe na 31.12.2022. godine iznosi 2339, što je 311 zaposlenika više u odnosu na 31.12.2021.
Personnel costs in 2022 amount to HRK 287 million or 42% more than the previous year.
2021. 2022.
Net wages costs 130.041 190,126
Tax and contribution costs 59,997 76,702
Other personnel costs 11,703 19,750
Personnel costs
201,741 286,578
Other personnel costs relate mainly to reimbursement of transport costs and rewards to employees.
New ways of internal communication
During 2022 we continued on developing internal
communication at the level of the entire group, which includes
an internal newsletter with the aim of timely and accurate
transmission of information to employees of all companies
within the CIAK Group. In addition to corporate information
related to changes in operations and business expansion, the
newsletter also informs employees about the benets and
internal training that we have established during the year.
Workshops CIAK Auto d.o.o.
In 2022, workshops were also launched for CIAK AUTO d.o.o.
with the aim of speeding up operational processes between
business units and central services. At the workshops, the
current challenges faced by the business units are solved
together, and communication between the operational and
central departments is strengthened. The workshops were held
in 5 regions and will continue in the rst half of 2023. Further
activities will be decided according to the nal evaluation of the
workshops.
Recognition of employee effort
In 2022, the CIAK Group employed over 300 people in Croatia,
both in central services and in sales, logistics and distribution,
and continues to continuously improve and reward its
employees, recognizing their hard work, collegiality and the will
to progress.
Onboarding
During 2022, the CIAK Group continued to develop the
ONBOARDING process for all new employees. The above-
mentioned process accelerates, and therefore facilitates,
the adaptation of new employees and introduces them to the
functioning of the company in which they are employed in a
warm and collegial manner.
THE MOST IMPORTANT HUMAN RESOURCE MANAGEMENT ACTIVITIES DURING 2022:
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
44
13
The following table shows the proportion of turnover of Taxonomy-eligible and Taxonomy-non-eligible economic activities in the CIAK
Group's consolidated turnover.
Within the Taxonomy-eligible activity Manufacture of batteries, there is an environmentally sustainable battery recycling activity as
one of the activities in CIAK Grupa. Turnover from recycling activities account for 6% of CIAK Group's consolidated turnover*.
Environmentally sustainable activity Collection and transport of non-hazardous waste in source segregated fractions accounts for
5.1% of CIAK Group's consolidated turnover.
Total turnover of environmentally sustainable activities within the CIAK Grupa account for 11.1% of CIAK Group's consolidated turnover.
13.4.1. PROPORTION OF TURNOVER FROM PRODUCTS OR SERVICES ASSOCIATED WITH
TAXONOMY-ALIGNED ECONOMIC ACTIVITIES
Pursuant to Article 21,a and 24,a of the Accounting Act, we publish information on the proportion of Taxonomy-eligible and Taxonomy-
non-eligible economic activities in the CIAK Group's total revenues, capital expenditures (CapEx) and operating expenditures (OpEX)
for the rst two environmental objectives (Climate change mitigation and Climate change adaptation).
In the following points, we present three key performance indicators in the CIAK Grupa.
In relation to other elements of non-nancial reporting; respect for human rights, the anti-corruption measures and issues related to bribery,
the management, considering the rapid development of the Group, especially the rapid growth in the number of employees and the number
of business partners in the territory of 6 countries and different legislative systems, strives to achieve the greatest possible degree of
unication of these elements, that is, approaching the standards of the mother society. In doing so, the management strives to respect the
national differences, traditions and customs of living and doing business in each country.
CIAK Group is continuously working on the development and implementation of business policies related to the above-mentioned issues.
13.4. KEY PERFORMANCE INDICATORS OF ENVIRONMENTALLY
SUSTAINABLE ECONOMIC ACTIVITIES
Economic activities (1) NKD 2007 (2)
Absolute
turnover (3)
Proportion
of turnover
(4)
Substantial contribution criteria
Climate
change
mitigation (5)
Climate change
adaptation (6)
Valuta: HRK % % %
A, TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable
activities (Taxonomy-aligned)
Manufacture of batteries 27,20 101,784,604 6,0 100
100
Collection and transport of
non-hazardous waste in source
segregated fractions
38,11 87,793,883 5,1 100 100
Turnover of environmentally sustainble
activities (Taxonomy-aligned) (A.1.)
189,578,487 11,1
A.2. Taxonomy-eligible, but not
environmentally sustainable activities
(not Taxonomy-aligned)
Turnover of Taxonomy-eligible, but
not environmentally sustainable
activities (not Taxonomy-aligned) (A.2.)
0 0,0
Total (A.1. + A.2.) 189,578,487 11,1
B, TAXONOMY-NON-ELIGIBLE
ACTIVITIES
Turnover of taxonomy-non-eligible
activities (B)
1,516,904,778 88,9
Total (A+B) 1,706,483,265 100,0
* According to the denition and calculation of the EU taxonomy
** Activities: Manufacture of batteries and Collection and transport of non-hazardous waste in source segregated fractions cause no signicant harm to
other environmental objectives: Water and marine resources, Circular economy, Pollution and Biodiversity and ecosystems and are carried out in accordance
with Minimum safeguards .
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
45
13
The following table shows the proportion of OpEx of Taxonomy-eligible and Taxonomy-non-eligible economic activities in the CIAK
Group's consolidated OpEx.
Within the Taxonomy-eligible activity Manufacture of batteries, there is an environmentally sustainable battery recycling activity as
one of the activities of the CIAK Grupa. OpEx from recycling activities account for 13.6% of CIAK Group's consolidated OpEx*.
Environmentally sustainable activity Collection and transport of non-hazardous waste in source segregated fractions account for
24.6% of CIAK Group's consolidated OpEx.
Total OpEx of environmentally sustainable activities within the CIAK Group account for 38.2% of CIAK Group's consolidated OpEx.
13.4.2. PROPORTION OF OPEX FROM PRODUCTS OR SERVICES ASSOCIATED WITH
TAXONOMY-ALIGNED ECONOMIC ACTIVITIES
Economic activities (1) NKD 2007 (2)
Absolute OpEx
(3)
Proportion
of OpEx (4)
Substantial contribution criteria
Climate
change
mitigation (5)
Climate change
adaptation (6)
Currency: HRK % % %
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable
activities (Taxonomy-aligned)
Manufacture of batteries 27,20 13,034,243 13.6 100 100
Collection and transport of
non-hazardous waste in source
segregated fractions
38,11 23,597,641 24.6 100 100
OpEx of environmentally sustainable
activities (Taxonomy-aligned) (A.1.)
36,631,884 38.2
A.2. Taxonomy-eligible, but not
environmentally sustainable activities
(not Taxonomy-aligned)
OpEx of Taxonomy-eligible, but not
environmentally sustainable
activities (not Taxonomy-aligned) (A.2.)
0 0,0
Total (A.1. + A.2.) 36,631,884 38.2
B. TAXONOMY-NON-ELIGIBLE
ACTIVITIES
OpEx of taxonomy-non-eligible
activities (B)
59,391,589 61.8
Total (A+B) 96,023,473 100.0
* According to the denition and calculation of the EU taxonomy
** Activities: Manufacture of batteries and Collection and transport of non-hazardous waste in source segregated fractions cause no signicant harm to
other environmental objectives: Water and marine resources, Circular economy, Pollution and Biodiversity and ecosystems and are carried out in accordance
with Minimum safeguards.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
46
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13.4.3. PROPORTION OF CAPEX FROM PRODUCTS OR SERVICES ASSOCIATED WITH
TAXONOMY-ALIGNED ECONOMIC ACTIVITIES
The following table
shows the proportion of CapEx of Taxonomy-eligible and Taxonomy-non-eligible economic activities in the CIAK
Grupa's consolidated CapEx.
Within the Taxonomy-eligible activity Manufacture of batteries, there is an environmentally sustainable battery recycling activity
as one of the activities of the CIAK Grupa. CapEx from recycling activities account for 1.1% of CIAK Grupa's consolidated CapEx.*
Environmentally sustainable activity Collection and transport of non-hazardous waste in source segregated fractions accounts
for 23.2% of CIAK Grupa's consolidated CapEx.
Total CapEx of environmentally sustainable activities within the CIAK Grupa account for 24,2% of CIAK Grupa's consolidated CapEx.
* According to the denition and calculation of the EU taxonomy
** Activities: Manufacture of batteries and Collection and transport of non-hazardous waste in source segregated fractions cause no signicant harm to
other environmental objectives: Water and marine resources, Circular economy, Pollution and Biodiversity and ecosystems and are carried out in accordance
with Minimum safeguards.
Economic activities (1) NKD 2007 (2)
Absolute
CapEx (3)
Proportion
of CapEx
(4)
Substantial contribution criteria
Climate
change
mitigation (5)
Climate change
adaptation (6)
Currency: HRK % % %
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable
activities (Taxonomy-aligned)
Manufacture of batteries 27,20 1,370,987 1,1 100 100
Collection and transport of
non-hazardous waste in source
segregated fractions
38,11 30,239,206 23,2 100 100
CapEx of environmentally sustainable
activities (Taxonomy-aligned) (A.1.)
31,610,192 24,2
A.2. Taxonomy-eligible, but not
environmentally sustainable activities
(not Taxonomy-aligned)
CapEx of Taxonomy-eligible, but not
environmentally sustainable
activities (not Taxonomy-aligned) (A.2.)
0,0
Total (A.1. + A.2.) 31,610,192 24,2
B. TAXONOMY-NON-ELIGIBLE
ACTIVITIES
CapEx of taxonomy-non-eligible
activities (B)
98,956,351 75,8
Total (A+B) 130,566,544 100,0
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
47
13
With the development of technology in the automotive industry, the complexity of vehicles
has increased, and thus their maintenance. In order for an independent aftermarket to remain
competitive with knowledge and customer service in relation to authorized service networks,
continuous education of mechanics becomes the key to success.
CIAK Auto Academy recognizes the importance of this segment of support for your business, and
for several years we have been holding trainings together with our partner suppliers such as TMD
Friction, Valea, Bilstein Group, ZF Friedrichshafen and others. Through 140 seminars held at more
than 30 locations in Croatia we have brought the latest technologies of our suppliers closer. Seeing
the interest in deeper knowledge, we decided to take it a step further - to start the CIAK Auto Academy.
CIAK Auto Academy was founded at the end of 2017. For this purpose, we procured a EuroV
standard vehicle and sent it for modication for thematic seminars. It is a vehicle from the VAG
group, Škoda Octavia III, 1.6 TDI CR, 105HP from 2015. The vehicle was prepared according to all
European standards of knowledge seminars with the support of the Eure!Car organization, which
is part of the AD International Group. We have 6 different topics at our disposal, which include a
complete vehicle by its work principal, according to the methodology and didactics of a modern
mechatronics engineer. The development of cars has risen to a level where it is increasingly
dicult for the "classic mechanic" to catch up, and it is necessary to enter the problem with a little
more prior knowledge of electricity and understanding of the operation of individual circuits. The
goal of CIAK Auto Academy is to bring knowledge closer to our B2B customers as much as possible.
In 2022, the online part of the CIAK Auto Academy starts operating. The task of the online part
of the academy is to create digital educational content primarily for mechanics (B2B segment).
At the same time, the online Academy becomes a kind of knowledge base for CIAK Auto and its
partners. Both parts of the CIAK Auto Academy are independent, but their work is intertwined.
The CIAK Auto Academy project started in Croatia and the goal is to expand it to all Group
companies in the region, initially in the Auto Parts segment.
13.5. CIAK AUTO AKADEMA
CIAK Auto Academy is a unied set of lectures aimed at professional development of car
mechanics and mechatronics, where both theoretical and practical part of teaching takes place
in locations throughout Croatia.
6. Workshop –
what and how
5. Complaints –
what and how
4. CR injection
(common rail)
3. A/C in-vehicle system2. ECU unit andsensors1. Vehicle electricity
Tematski seminari podeljeni su u nekoliko koraka (tema):
7. CAN/LIN-bus data
network
8. DSG clutch
0AM gearbox
DSG
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
48
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13.6.1. CERTIFICATES
13.6. CERTIFICATES AND ASSOCIATIONS
a. ISO 9001:2015
The ISO 9001 quality management system focuses on the continuous improvement of the
organization in all processes from design to marketing, production/service, after-sales, all with
the aim of meeting the needs and expectations of all stakeholders in the organization.
The ISO 9001 quality management system has become an imperative in today's industry and the
need for it arises for several reasons. It is this system with wide application that has become a
key factor in solving the problems faced by organizations of all types and sizes. In addition to
providing a guarantee that all processes or products or services are implemented according
to the requirements of the quality management system dened in ISO 9001, regardless of the
type of product or service, the quality management system brings far more signicant benets.
These advantages are mostly reected in increasing employee satisfaction and reducing
employee turnover, reducing the number of non-compliances, saving time and thus reducing
costs, full compliance with legal requirements and obligations, etc.
b. ISO 50001:2018
The ISO 50001 is a global standard for energy eciency management that often allows
signicant savings to be made with simple organizational changes, without large investments.
It enables the establishment of the practice of conscientious use of energy, which, in addition
to reducing costs, also increases productivity.
c. ISO 45001:2018 i ISO 45001:2015
The ISO 45001 standard ensures a safe working environment, increases the satisfaction and
eciency of all employees, identies and controls health and safety risks, reduces potential
accident risk, reduces the number of sick days, fully complies with legal regulations and fully
improves business and company image.
d. ISO 39001:2012
The ISO 39001: 2012 certicate species the requirements for a road safety management
system (RTS) to enable an organization interacting with a road trac system to reduce mortality
and serious injuries associated with trac accidents that may be affected. Requirements in
ISO 39001: 2012 include the development and implementation of appropriate RTS policy, the
development of RTS objectives and action plans, which take into account legal and other
requirements to which the organization is subscribed, and information on RTS elements and
criteria identied by the organization as ones that can be controlled and inuenced.
CIAK GROUP HAS 7 DIFFERENT QUALITY CERTIFICATES:
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
49
13
e. SCCP:2011
SCCP: 2011 is a certicate for manufacturers, contractors and service providers. This certicate
conrms that the organization and employees apply a system of occupational safety, health and
environmental management. The certicate enables work in extremely dangerous conditions.
f. HRN EN ISO/IEC 17025:2007
The ISO/IEC 17025:2007 certicate covers testing carried out by standard methods,
nonstandard methods and laboratory-developed methods. The certicate is applicable to all
organizations conducting tests and/or calibrations. This includes, for example, rst, second and
third party laboratories, and laboratories where testing and/or calibration are part of product
inspection and certication. ISO/IEC 17025:2007 is applicable to all laboratories regardless of
the number of staff or the scope of testing and/or calibration activities. ISO/IEC 17025:2007 is
used by laboratories in the development of their quality management system, administrative
and technical operations. Laboratory users, regulatory bodies and accreditation bodies may
also use it to conrm or recognize the competence of a laboratory.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
50
13
3.000
outlets
10.000
service stations
in the ADI network
23
partners
600
wholesale
distributers
48
countries
13.6.2. ASSOCIATIONS
AD INTERNATIONAL
AD Adria is a proud member of AD International, a group of over 600 wholesale
distributors from 48 countries in Europe, North America and Central Asia, with
the aim of exchanging information and improving business methods with superior
logistics eciency. AD International provides support services to its partners
by providing them with adequate and timely information, as well as technical
support in the form of training, advice and assistance.
ADI has established its own exclusive program to enhance and promote technical
training and support: Eure!Car. Eure!Car includes high-quality technical training
for professional mechanics and is supported by leading auto parts manufacturers.
CIAK Auto Academy is the implementation of the successful Eure!Car concept in
Croatia, with the aim of raising the level of knowledge of a completely independent
aftermarket.
AD International in number:
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
51
13
13.7.1. TOOLS AND SERVICE EQUIPMENT
13.7. NEW PRODUCT
Especially meeting the needs of customers and mechanics during
the many years of our operation, we have provided an extremely wide
range with fast delivery of service equipment and tools. Thus, there is
a wide selection of vulcanization equipment, two-stage truck cranes,
scissor truck cranes, four-stage truck cranes, workshop furniture,
diagnostic testers, compressors, pneumatic guns, hydraulic presses,
special tool sets for engine phase, precision measuring instruments,
welding equipment, welding equipment and power tools, and many
others.
By expanding its range of tools and service equipment in 2021, the
CIAK Group has enabled car mechanics in Croatia and the region
to have daily access to premium tool brands from world-renowned
manufacturers. Through a network of over 150 branches and 320
delivery vehicles, in 2021 the CIAK Group has 150,000 premium
items available within just 24 hours in Croatia and the region,
thus conrming its status as a market leader. Some of the brands
in our offer are: Bosch, DeWalt, Stanley, Black & Decker, Omega Air,
Draper Tools, Mimont, Tools4you, Ravaglioli, Hazet, Sw-Stahl, Fervi,
Kassmayer and many others.
In order to provide partners with the best possible tools for work
and customers with the highest quality service and products, we
continuously invest in the development of the range as well as
professional technical support and quality education. In addition to
the already large number of over 1,500,000 items available through
our network of branches and deliveries, the commendable work of
the CIAK Auto Academy should also be highlighted. It is through this
program that for several years now, through professional seminars
and individual training, we have been providing our partners with top-
notch knowledge of diagnostic devices and tools, so that we can offer
our customers the best knowledge in step with new technologies.
We have assembled a team of dedicated sales and technical
experts who, with their efforts, strive on a daily basis to exceed the
expectations of every customer. We have created a positive working
environment that will enable colleagues in sales to succeed in their
given endeavours and thereby achieve personal satisfaction and
professional growth.
Our ultimate goal has always been, and continues to be, to satisfy
our customers with a large selection, unsurpassed quality and
affordability of the sales range in a professional and affordable
manner with continuous growth and development of the company.
Novelty in 2022 is the expansion of the network to other companies
in the Auto parts segment within our region.
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13
13.7.2. FLEET DEPARTMENT
CIAK Auto Fleet Management is a national network of service centres organized by CIAK Auto. CIAK Auto Fleet Management brings
together over 90 independent service centres, and they were selected based on their quality work and in accordance with the criteria
of the CIAK Auto standard.
CIAK Auto Fleet Management and service partners ensure the maintenance of all brands of vehicles, personal and light vans and the
availability of high-quality spare parts for the rst installation that are IATF 16949 certied. In addition to the existing network in the
Republic of Croatia, the foundation for the growth of CA Fleet Management solutions in the Serbian market has been laid.
All CIAK service partners are trained to provide service according to the most modern standards and requirements of today's cars:
• professional and trained service teams,
• state-of-the-art equipment and tools,
• warranty on installed spare parts for 2 years,
• quality and fast service,
• the possibility of online ordering,
• ecological waste disposal,
• records of work on the vehicle.
Vehicle maintenance and repair is a very demanding job, but also a great responsibility. To ensure quality, safety and nancial savings,
all CIAK Auto service partners are equipped and trained for a wide range of car repairs and service.
CIAK Auto Fleet Management offers:
• the largest network of service centers throughout Croatia,
• fully equipped workshops,
• qualied staff,
• installation of original spare parts and rst installation parts that are IATF 16949 certied,
• standardized services according to the licensed AUTODATA program,
• towing and roadside assistance service from 0-24 hours.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
53
13
AUTO CAR MECHANICS: includes regular service maintenance
according to service intervals prescribed by the vehicle
manufacturer, all other repairs of the engine group, gearbox,
suspension, brake system, exhaust system.
CAR ELECTRICITY: includes all types of repairs and
replacements of electrical components on the vehicle,
including batteries and lighting equipment.
DIAGNOSTICS: diagnosing all types of faults and resetting
service intervals with state-of-the-art diagnostic devices.
AUTOCLIMATE: control and servicing of the complete air
conditioning system on the vehicle with the most modern
devices, relling the system with gas, cleaning and disinfection.
VULCANIZATION: sale of tires and wheels, assembly and
balance, wheel geometry.
TOWING SERVICE: roadside assistance 0-24 h for all contracted
users of AutoPlus service, warranty on used vehicles for
all users of AutoPlus service within the warranty period for
installed parts and service.
CIAK CAR SERVICE HEADQUARTERS NETWORK MAP
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
54
13
13.8. EcoCycle
The CIAK Group, in addition to being the leading distributor, collector and recycler of batteries in the region since
1994, has also proven to be a socially and environmentally responsible partner through the CIAK EcoCycle program; a
business model that describes the circular economy. The CIAK Group manufactures, sells, collects and then recycles
old batteries and maximizes the usability of the obtained raw material for the next production cycle. CIAK EcoCycle is
an outstanding example of a circular economy and an indicator of how it is possible to align environmental, economic
and development goals at the Group level.
The business model of this segment is set so that the raw materials obtained after the recycling process are sold
to foreign customers who are also battery manufacturers. Subsequently, such raw material buyers sell ready-made
new batteries to the Group as suppliers in the battery and oil distribution segment, on the basis of agreements
establishing multi-year cooperation.
Battery purchase is done in two ways:
(i) actively (B2B) in collection stations and mechanics, end-users with a larger eet, and,
(ii) passively (B2C) through the "old for new" model, where the Group uses its own retail network and network of
service partners, which consists of a total of 120 (one hundred and twenty) redemption points, making it the largest
redemption network in region.
.
.
.
.
C.I.A.K.
recovers old batteries
in its Recycle center and
manufactures lead for
production of
new batteries.
C.I.A.K.
collects old
batteries from
stores and repair
shops.
Repair shops
install new
batteries
and collect old
batteries.
Stores sell
new batteries
and collect
old waste
batteries.
C.I.A.K.
sells new
batteries.
Sustainable circular economy in Croatia - CIAK EcoCycle (VIDEO)
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
55
13
The rst activities began in 1994 with the organized collection
of old batteries and their processing, followed by the expansion
of activities to all other hazardous / non-hazardous waste, but
also to other activities related to environmental protection.
The CIAK Group manages over 30 thousand tons of hazardous
and non-hazardous waste per year. The Group has experience
in the management of all types and categories of waste, with a
maximum capacity of over 70 thousand tons per year.
The company has established cooperation with over 2,000
business entities, from which it takes over, transports,
processes and disposes of hazardous and non-hazardous
waste on a daily basis. The collected waste is partly treated
independently, and where this is not possible, the waste is
transported to unrelated companies that have their own
facilities for processing the remaining waste, and all hazardous
waste is transported to foreign incinerators.
The Group's entry into the waste management market took place
in 2000 at the former Waste Management Centre in Vojnić, and
was signicantly developed by a Greeneld investment for the
construction of a Waste Management Centre at a location in Zabok.
Greeneld's investment in the Battery and Battery Recycling
Centre is an example of aligning the company's economic and
development goals with those of the environment. C.I.A.K.
d.o.o. has established the only Freon Centre where it receives
controlled substances and / or oured greenhouse gases from
refrigeration and air conditioning equipment, heat pumps, re
protection systems and re extinguishers from authorized service
technicians. Also, the C.I.A.K. d.o.o. has established its own testing
laboratory as a natural sequence of performing the activities of
remediation of contaminated sites and industrial plants.
The Centre for Hazardous and Non-Hazardous Waste
Management in Zabok was built for these purposes and is the
only such building in Croatia with all permits issued by the
Governance. At all locations, there are vehicles, adequately
equipped for logistics procedures with hazardous and non-
hazardous waste. In addition to infrastructure and logistics, the
advantage is employees with many years of work experience in
this sector from waste management in the warehouse, through
administrative and commercial work to expert engineers. The
Centre for the Recovery of Batteries in Zabok processes 95%
of lead-acid batteries in Croatia. The recycling centre in Zabok
is the only centre in Croatia that meets all European standards.
Due to the consistent implementation of strategic and planning
documents for the management of waste batteries, also by
organizing the management system for waste batteries in
accordance with legal regulations, the Group recovers 95.3%
of batteries from the Croatian market thus stands out as an
example to Croatian companies.
In addition to collecting, processing and using modern
environmentally friendly technologies in the processing
of batteries, on the principles of sustainable circular
management, CIAK Group also works on raising awareness
and educating users through its projects to increase waste
batteries submitted for treatment and reduce the number of
those being disposed inappropriately endangering the health
of humans, animals and plants.
In its facilities, the Group uses state-of-the-art technology
and state-of-the-art production methods, and all recycling
processes comply with industry and environmental standards.
It has a leading share in the waste management market in this
segment. It has all the necessary permits issued by the Ministry
of Environmental Protection, Physical Planning and Construction
to perform waste management activities. CIAK Group is the
holder of numerous concessions and international licenses.
HAZARDOUS WASTE
EXPERT CONSULTING AND
ENVIRONMENTAL PROTECTION
REMEDIATION OF
CONTAMINATED SITES
CLEANING AND MAINTENANCE
OF INDUSTRIAL PLANTS
NON-HAZARDOUS WASTE CIAK LABORATORY
C.I.A.K. annually manages over 30.000 tonnes
of hazardous and non-hazardous waste
Obligation to conduct environmental impact
studies is dened by environmental laws
Contaminated locations and industrial plants
present a potential threat to the environment
Cleaning and maintenance of water drainage
systems, cleaning and maintenance of industrial
equipment
We provide waste management services
for over 2000 partners
We examine and clean hundreds of kilometres
of drainage systems of Croatian Motorways
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
56
14
14.1. IMPORTANT BUSINESS EVENTS AFTER CLOSURE OF BUSINESS YEAR
14.2. CIAK GROUP'S SUBSIDIARIES
On 31 December 2022, CIAK Group had registered subsidiaries as set out in presentation.
Name of the subsidiary
C.I.A.K. AUTO d.o.o. Sarajevo 3 BUSINESS UNITS REGISTERED AS SUBSIDIARY
C.I.A.K. d.o.o. Grude 2 BUSINESS UNITS REGISTERED AS SUBSIDIARY
CIAK TRUCK d.o.o. Sarajevo 3 BUSINESS UNITS REGISTERED AS SUBSIDIARY
AUTO MILOVANOVIĆ d.o.o. Banja Luka 26 BUSINESS UNITS REGISTERED AS SUBSIDIARY
LUKENA AUTO d.o.o. Beograd 4 BUSINESS UNITS REGISTERED AS SUBSIDIARY
CIAK TRUCK d.o.o. Novi Sad 5 BUSINESS UNITS REGISTERED AS SUBSIDIARY
C.I.A.K. d.o.o. Novi Sad 2 BUSINESS UNITS REGISTERED AS SUBSIDIARY
C.I.A.K. AUTO EKSPORT-IMPORT dooel Skopje 4 BUSINESS UNITS REGISTERED AS SUBSIDIARY
14.3. REPURCHASE OF TREASURY SHARES
In 2022, the Group acquired 23,750 treasury shares with a nominal amount of HRK 237,500,
which represent 0.12% of the share capital.
Repurchase was made on the basis of trading outside the trading venue, through multiple transactions throughout the year.
On 31 December 2021 the Company owned 70,000 shares with a total nominal amount of HRK 700,000, i.e. 0.35% of the
Company's share capital, while on 31 December 2022 the Company owns 40,750 shares with a total nominal amount of HRK
407,500, which represent 0.20% of the Company's share capital.
Business mergers
For nancial statements with a balance sheet date of 31 December 2022, realized acquisitions in 2023 are an event that does not
require reconciliation, given that they have an effect on operations and nancial statements in 2023.
In February, 2023 CIAK Group nalized the acquisition transaction of the company Potokar d.o.o., Ljubljana, Slovenia. The Potokar company is one
of the independent automotive aftermarket distributors (IAM) in Slovenia, generating turnover of more than 7 million EUR present at 18 locations
throughout Slovenia with a portfolio of over 40,000 references. Company Potokar was one of the pioneers of automotive aftermarket in Slovenia,
family company focused on partnership values that always had strong emphasis on business development and education of both employees and
their loyal partners. Its brand name Potokar and core values of the company will continue to be nurtured by local team led by Mr. Peter Potokar as
CEO, with even more strength and dedication for expansion of its offering on the market of Slovenia thanks to the support of CIAK Group.
Taking into consideration CIAK Group core business, company Potokar d.o.o. is one of the logical steps in further strengthening the
growth of CIAK Group. As a family company, Potokar d.o.o. is also in business culture and business expertise very similar to the company
CIAK Auto, therefore we expect to fully utilize the synergies of these two groups and enable the company for an even better result in
the coming years, while also utilizing all positive aspects of Potokar to further strengthen CIAK Auto market position in Adria region.
With this transaction CIAK Group continues to be one of the leading IAM companies in Adria region, strongly present in the passenger
car spare parts distribution networks in Croatia, Montenegro, Serbia, Bosnia and Hercegovina, North Macedonia and now Slovenia as
a new market for CIAK Group.
Changing the functional currency
The Government of the Republic of Croatia adopted the Decision on the announcement of the introduction of the euro as the ocial
currency in the Republic of Croatia (published in "Narodne novine" No. 85/22). With the aforementioned decision, the euro becomes
the ocial monetary unit and legal tender in the Republic of Croatia on 1 January 2023. The xed conversion rate is set at HRK 7.53450
for one euro. The introduction of the euro as the ocial currency in the Republic of Croatia represents a change in the functional value
that will be calculated prospectively and does not represent an event after the balance sheet date that requires reconciliation
Overview of other
announcements, events, evaluations and data
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
57
The Group makes its business plans for each business year, including the three-year period
business
overview for all activity areas of the Group and individually on level of each company
meaning of each market, and ultimately on a consolidated level.
During the year 2022 the Group is engaged in expanding its business and taking bigger and
better position in the market, both domicile and foreign one.
The Group's strategy is to expand the range in the eld of wholesale and the volume of business
within environmental affairs and production, as well as in the area of car parts segment in the
following years.
The long-term goal at the CIAK Group level is to ensure steady and sustainable growth and
development.
15
Expected development of the
group in the future
15.1. MAKING ANNUAL BUSINESS PLANS
15.2. GROUP'S R&D ACTIVITIES
The Group pays special attention to the development and introduction of new technologies, also
to additional training and improvement of quality and perspective personnel which by engaging
funds for additional education enables the acquisition of new knowledge necessary in struggling
with increasing competition.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
58
16
The Management Board of CIAK Group (hereinafter: the Company) submits a Statement on
the application of the Corporate Governance Code pursuant to Article 22 of the Accounting
Act. Given the fact that the shares of the company listed on the regulated market, CIAK Group
d.d. applies the Corporate Governance Code which prepared jointly by the Croatian Financial
Services Supervisory Agency and the Zagreb Stock Exchange, and is effective as of 1 January
2020. It was published on the website of the Zagreb Stock Exchange (www.zse.hr) and the
Croatian Financial Services Supervisory Agency (www.hanfa.hr).
By applying the recommendations of the Code in its operations, the Company has achieved all
the basic principles of corporate governance that the Code seeks to achieve::
• business transparency,
• clearly developed procedures for the work of the supervisory board, management and other
management structures,
• avoiding conicts of interest,
• effective internal control,
• an effective accountability system.
In relation to each of the corporate governance stakeholders, this means the following;
16.1. SHAREHOLDERS AND THE INVESTMENT PUBLIC
All shareholders have the same position regardless of the number of shares, just as institutional
and individual investors have equal treatment.
All shareholders have the right to be informed, and the notication is made through the
Company's website www.ciak.hr section "Investors".
At least once a year, the general assembly of the company is held, in which all shareholders and
their proxies have the right to participate. The agenda of the General Meeting is published in the
manner and within the deadlines determined by the Companies Act, and decisions are made by
the prescribed majority of votes with the application of the principle of one share - one vote.
The obligatory item on the agenda is the report of the Supervisory Board and the annual report
on the state of the company, on which reports the shareholders were allowed to discuss and ask
questions before making a nal decision. The rules for convening, holding and behaving during
the General Assembly are determined by a special internal act (Rules of Procedure of the General
Assembly) published on the Company's website.
Statement on the application of
the corporate governance code
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
59
16
16.2. ADMINISTRATIVE AND SUPERVISORY BODIES
AND EMPLOYEES
The Company's internal acts (Articles of Association, Statute, Rules of Procedure of the
Management Board, Rules of Procedure of the Supervisory Board) determine the criteria for
appointment and election of the Management Board and Supervisory Board (composition,
education, tasks and responsibilities, manner of work, meetings and decision-making),
relation to other bodies and related persons. When appointing members of the Management
Board (5 members) and the Supervisory Board (7 members, of which 1 member is an employee
representative), the existence of conicts of interest and possible membership of members
in the Management Boards and Supervisory Boards of other companies is taken into account.
The Company monitors and evaluates the work of members of the Management Board and the
Supervisory Board and rewards or penalizes them with appropriate results, all in accordance
with the acts adopted at the General Assembly "Remuneration Policy" and the Decision on
remuneration for members of the Supervisory Board
16.3. INTERNAL AND EXTERNAL AUDIT OF THE COMPANY
The internal audit veries compliance with regulations, guidelines and instructions, and
the independent external auditor is responsible for assessing the adequacy of the nancial
statements in relation to the actual situation in the company.
In accordance with the Audit Act, the Audit Commission was established within the Supervisory
Board, the so-called Audit Committee tasked with monitoring the integrity of the company's
nancial information and assessing the quality of the internal control and risk management
system at least once a year. The members of the Audit Committee are appointed from among
the members of the Supervisory Board, are independent of the Company and are experts in the
eld of accounting and auditing. The Audit Committee is independent in its work.
An independent audit rm was selected as the external auditor by a decision of the General
Assembly.
From all the above, it is clear that the Company has a transparent relationship with investors.
Material facts and inside information are regularly published on the ocial website of the
Company. A calendar of important events and the shareholder structure is published on the
ocial website. The Company's website is published in Croatian and English and contains a
contact through which relevant information can be requested from the company's management
or the authorized person in charge of investor relations. Special conferences with investors are
held periodically. The Management Board is responsible for quality and transparent relations in
the company.
The company is also making every effort to meet the new EU guidelines in terms of achieving
sustainable corporate governance by aligning business activities with the achievement of the
EU's overall environmental objectives set out in the "European Green Plan".
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
60
Independent Auditors' Report
and consolidated
nancial statements
This version of our report is a translation from the original, which was prepared in 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 our report takes precedence over this translation.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
70
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
(in thousands of HRK)
Note
2021
1,706,484
1,345,336
Operating revenues 6 1,706,484 1,345,336
22,105
Bargain purchase 31 317 22
,105
9,415
13,156
Other income 7 9,415 13
,156
1,160,675
Material expenses 8 (1,160
,675) (937,428)
286,578
Employee expenses 10 (
286,578) (201,741)
71,259
Depreciation and amortisation 14,15,16 (7
50,739
1,259) (50,739)
123,897
Other operating expenses 9 (
99,747
123,897) (99,747)
73,807
Operating profit 73,80
7 90,942
4,092
Finance income 11 4,092 3,892
15,904
Finance costs 12 (1
12,476
5,904) (12,476)
11,812
Net finance expense (11,81
8,584
2) (8,584)
61,995
82,358
Profit before tax 61,995 82,358
15,859
12,261
Income tax 13 (15,859) (12,261)
Net profit for the year
70,097
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Foreign operations - foreign translation differences
683
(683
) (419)
45,453
Total comprehensive income 45,45
3 69,678
Profit attributable to:
Equity holders of the parent
70,114
Non-controlling interests (101) (17)
Total comprehensive income attributable to:
Equity holders of the parent 45,554 69,695
101
Non-controlling interests (
101) (17)
Earnings per share (in HRK):
3.56
Basic 2.35 3.56
Diluted
3.55
The accompanying accounting policies and notes form an integral part of these consolidated financial
statements.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
71
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries
70
(in thousands of HRK)
Note
31.12.2022
31.12.2021
ASSETS
Non-current assets
Intangible assets and goodwill
14
66,258
57,702
Property, plant and equipment
15
205,318
187,411
Right of use assets
16
155,577
139,335
Equity-accounted investees
17
2,302
2,302
2,260
2,260
Financial assets
18
2,388
2,388
2,542
2,542
Trade and other receivables
20
1,909
1,909
2,073
2,073
Deferred tax assets
13
2,720
2,720
2,169
2,169
Total non-current assets
436,472
393,492
Current assets
Inventories
19
634,339
535,299
Financial assets
18
207
6,034
6,034
Trade and other receivables
20
285,256
263,595
Income tax receivable
1,434
1,434
3,167
3,167
Cash and cash equivalents
21
105,954
75,546
Non-current assets held for sale
22
2,169
2,169
1,621
1,621
Total current assets
1,029,359
1,029,359
885,262
Total assets
1,465,831
1,465,831
1,278,754
1,278,754
EQUITY AND LIABILITIES
Shareholders' equity
Share capital
23
197,520
197,520
Capital reserves
24
184,634
184,634
Legal reserves
1,864
-
Treasury shares
25
1,686
(1,686)
2,800
(2,800)
Reserves for treasury shares
25
80
-
Retained earnings
116,157
116,157
107,296
Attributable to equity holders of the parent
498,569
486,650
Non-controlling interests
26
(93)
8
Total shareholders' equity
498,476
486,658
Non-current liabilities
Borrowings
27
275,751
301,717
Provisions
28
57
911
Trade and other payables
29
127
295
Deferred tax liability
13
5,875
5,875
5,989
5,989
Total non-current liabilities
281,810
308,912
Current liabilities
Trade and other payables
29
481,328
363,932
Income tax payable
7,711
7,711
8,576
8,576
Borrowings
27
196,506
110,676
Total current liabilities
685,545
483,184
Total liabilities
967,355
792,096
Total equity and liabilities
1,465,831
1,465,831
1,278,754
1,278,754
The accompanying accounting policies and notes form an integral part of these consolidated financial
statements.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
72
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries
71
(in HRK thousands)
Share
capital
Capital
reserves
Legal
reserves
Treasur
y shares
Reserves
shares
for
treasury
Retained
earnings
Total
Non-
controlling
interests
Total
As at 1 January 2021
197,520
184,762
-
-
-
37,601
419,883
3,829
423,712
Comprehensive income
Profit for the year
-
-
-
-
-
70,114
70,114
(17)
70,097
Foreign exchange differences
-
-
-
-
-
(419)
(419)
-
(419)
Other comprehensive income
-
-
-
-
-
(419)
(419)
-
(419)
Total comprehensive income
-
-
-
-
-
69,695
69,695
(17)
69,678
Transactions with owners and
equity
transfers recognised directly in
Loss of control
-
-
-
-
-
-
-
3,804
(3,804)
3,804
(3,804)
Other changes in Equity
-
(128)
-
-
-
-
(128)
-
(128)
Purchase of treasury shares
-
-
-
2,800
(2,800)
-
-
2,800
(2,800)
-
2,800
(2,800)
Total transactions with
equity
owners recognised directly in
- (128) - (2,800) - - (2,928) (3,804) (6,732)
As at 31 December 2021
197,520
184,634
2,800
(2,800)
-
107,296
486,650
8
486,658
Comprehensive income
Profit for the year
-
-
-
-
-
46,237
46,237
(101)
46,136
Foreign exchange differences
-
-
-
-
-
(683)
(683)
-
(683)
Other comprehensive income
-
-
-
-
-
(683)
(683)
-
(683)
Total comprehensive income
-
-
-
-
-
45,554
45,554
(101)
45,453
Transactions with owners and
equity
transfers recognised directly in
Transfer to reserves for
treasury shares
- - - - 2,200 (2,200) - - -
Share award
-
-
-
2,120
2,120
(2,120)
2,332
2,332
-
2,332
Purchase of treasury shares
-
-
-
1,006
(1,006)
-
-
1,006
(1,006)
-
1,006
(1,006)
Transfer to legal reserves
-
-
1,864
-
-
(1,864)
-
-
-
Dividend paid
-
-
-
-
-
(34,961)
(34,961)
-
(34,961)
Total transactions with
equity
owners recognised directly in
- - 1,864 1,114 80 (36,693) (33,635) - (33,635)
As at 31 December 2022
197,520
184,634
1,864
1,686
(1,686)
80
116,157
498,569
(93)
498,476
The accompanying accounting policies and notes form an integral part of these consolidated financial
statements.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
73
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries
72
(in thousands of HRK)
Note
2022
2021.
Profit for the year
46,136
70,097
Income tax
13
15,859
12,261
Depreciation and amortization
14, 15, 16
71,259
50,739
Write off of property, plant and equipment
-
1,195
1,195
Write off of intangible assets
109
3
(Gain)/loss on disposal of property, plant, equipment and intangibles
2,443
(2,443)
(103)
Impairment of trade and other receivables
3,131
3,131
3,521
(3,521)
Impairment of Inventories
9,522
9,522
6,654
6,654
Net change in provisions
(854)
630
Unrealised exchange rate differences
2,393
(2,393)
(609)
Interest income
11
(224)
(157)
Interest expense
12
10,253
6,435
6,435
Bargain purchase
(317)
22,105
(22,105)
Loss of control
-
1,544
(1,544)
Other non cash adjustments
145
-
150,183
119,975
Changes in working capital:
Trade and other receivables
17,533
(17,533)
47,077
(47,077)
Inventories
(94,213)
(115,282)
Trade and other payables
109,804
96,037
Cash generated from operations
148,241
53,653
Interest paid
4,795
(4,795)
5,180
(5,180)
Income taxes paid
15,779
(15,779)
3,551
(3,551)
Net cash from operating activities
127,667
44,922
Cash flows from investing activities
Proceeds from sale of property, plant and equipment
2,131
600
Net change in deposits
(837)
1,989
1,989
Purchase of property, plant, equipment
41,856
(41,856)
61,235
(61,235)
Purchase of financial assets
-
3,050
(3,050)
Acquisition of subsidiary net of cash
(5,640)
(138,332)
Cash flows from losing control of subsidiaries
-
(670)
Net cash used in investing activities
(46,202)
(200,698)
Cash flows from financing activities
Dividends paid
34,843
(34,843)
-
Loans received
102,662
130,292
Loans repaid
66,516
(66,516)
65,405
(65,405)
Lease liabilities paid
51,354
(51,354)
32,363
(32,363)
Purchase of treasury shares
1,006
(1,006)
(599)
Net cash from / (used) in financing activities
51,057
(51,057)
31,925
Net increase of cash and cash equivalents
30,408
30,408
(123,851)
Cash and cash equivalents at beginning of year
75,546
199,397
Cash and cash equivalents at the end of year
21
105,954
105,954
75,546
The accompanying accounting policies and notes form an integral part of these consolidated financial
statements.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
74
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries
73
NOTE 1 – GENERAL INFORMATION
History and incorporation
CIAK Grupa d.d., Zagreb (formerly named Direkt d.o.o., “the Company”) is incorporated in the Republic
of Croatia on 14 January 1999. The principal activities of the Company and its subsidiaries (together
referred to as “the Group”) comprise wholesale and retail of automotive parts as well as waste
management.
The Group is headquartered in Zagreb, Croatia, Savska Opatovina 36.
By the decision on legal transformation of 27 December 2019, the Company was transformed from a
limited liability company into a joint stock company which was registered at the Commercial Court in
Zagreb on 2 January 2020 and the Company changed its name to CIAK Grupa d.d.
The shareholder structure is shown in note 23.
Corporate governance and management
General Assembly
The General Assembly of the Company consists of the shareholders of CIAK Grupa d.d.
Supervisory Board
The members of the Supervisory Board since the date it was formed and until the date of these financial
statements were as follows:
Management Board
The Company formed a Management Board consisting of multiple members on 27 April 2020. The
Management Board members of the Company are as follows:
President of the Management
Board
Ivan Leko (appointed 27 April 2020)
Member of the Management Board
Dominik Leko (sole Director of the Company until 27 April 2020)
Member of the Management Board
Dalibor Bagarić (appointed 27 April 2020)
Member of the Management Board
Ivica Greguraš (appointed 27 April 2020)
Member of the Management Board
Ivan Miloš (appointed 27 April 2020)
President
Stjepan Ljatifi (appointed 27 December 2019)
Deputy President
Vjekoslav Mesaroš (appointed 6 May 2020)
Member
Slavica Zrinski (appointed 27 December 2019)
Member
Đurđica Meglajec (appointed 27 December 2019)
Member
Damir Kos (appointed 6 May 2020)
Member
Zvonko Merkaš (appointed 1 August 2021)
Member
Marko Varga (appointed 1 August 2021)
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 74
NOTE 2 – BASIS OF PREPARATION
(i) Statement of compliance
The consolidated financial statements have been prepared in accordance with International Financial
Reporting Standards as adopted by the European Union (“EU IFRS”). The separate financial statements the Company
is required to prepare in accordance with EU IFRS are published separately and issued simultaneously with these
consolidated financial statements.
(ii) Basis of measurement
The consolidated financial statements of the Group have been prepared on the historical cost basis, except
where stated otherwise (see note 5). The financial statements are prepared on a going concern basis.
(iii) Functional and presentation currency
These financial statements are prepared in the Croatian kuna (“HRK”), which is also the functional currency,
rounded to the nearest thousand.
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following accounting policies have been consistently applied to all the years presented in these consolidated
financial statements.
3.1 Basis of consolidation
(i) Group structure and scope of consolidation
As at the reporting dates, the Company held the following ownership interests in controlled entities:
2022
2021
Company
Country
*DOI%
*EOI%
*DOI%
*EOI%
C.I.A.K. auto d.o.o. HR 100% 100% 100% 100%
C.I.A.K. Auto d.o.o. BiH 100% 100%
AD Adria d.o.o.
HR
100%
100%
C.I.A.K. Auto Srbija d.o.o. RS 100% 100%
Lukena Auto d.o.o.
**
RS
100%
0%
Auto Milovanović d.o.o.
**
BiH
100%
0%
Ciak auto d.o.o. (Lukena Auto d.o.o.)
**
MKD
100%
0%
Next Auto d.o.o. ** CG 100% 0%
Mika komerc d.o.o.
***
RS
100%
100%
Fuerza d.o.o. *** HR 100% 100%
C.I.A.K. d.o.o. HR 100% 100% 100% 100%
C.I.A.K. d.o.o.
RS
100%
100%
C.I.A.K. d.o.o. SLO 100% 100%
C.I.A.K. d.o.o. Grude BiH 100% 100%
Grioss RS d.o.o.
BiH
100%
100%
Bendj trade d.o.o. BiH 62% 62%
Top start d.o.o.
HR
100%
100%
Autodijelovi d.o.o. HR 50% 50%
Adriatik ulja d.o.o. HR 100% 100%
Ciak Makedonija (Euroguma trade d.o.o.)
***
MKD
100%
0%
CIAK Truck d.o.o. HR 100% 100% 100% 100%
Ciak tools d.o.o.(Trgometal d.o.o.) ** HR 100% 0%
TM Auto d.o.o.
**
HR
100%
0%
Cordia Trade d.o.o. ** HR 100% 0%
C.I.A.K. Truck Srbija d.o.o. RS 100% 100%
C.I.A.K. Truck Servis
HR
100%
100%
C.I.A.K. Truck
BiH
100%
100%
DBH d.o.o. *** HR 100% 100%
C.I.A.K. trade d.o.o.
HR
100%
100%
100%
100%
CIAK USLUGE d.o.o.
RS
100%
100%
100%
100%
C.I.A.K. Truck (Kamioland) **** SLO 50% 50%
*DOI = direct ownership interest of parent company / EOI = effective ownership interest of parent company.
**The companies acquired during 2021.
*** The companies acquired during 2022.
**** Company accounted as equity accounted investees as of 1. January 2021
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
76
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 75
has the power to govern the financial and operating
rights. The existence
and effect of potential voting rights that are currently exercisable or convertible are considered when
controls another entity. Subsidiaries are fully consolidated from the date
consolidated from the date that control ceases.
(other than
. The consideration transferred for the acquisition of a
subsidiary is the fair values of the assets transferred, the liabilities incurred and the equity interests issued
on transferred includes the fair value of any asset or liability resulting from
Acquisition related costs are expensed in the statement of
s and contingent liabilities
assumed in a business combination are measured initially at their fair values at the acquisition date. On
controlling interest in the acquiree
.
controlling interest in the acquiree and
n the acquiree over the fair value of the Group’s
share of the identifiable net assets acquired is recorded as goodwill. If this is less than the fair value of the
ognised directly
controlling interests are initially measured by their proportionate share of recognised net assets of
re in the subsidiary that do not result in
subsidiary, the subsidiary’s assets and liabilities and all related non-
controlling interests and other equity items are derecognised. Gains or losses are recognized in the income
group transactions, are
ing from transactions
with associates and jointly controlled entities are eliminated to the extent of the Group’s interest in the
enterprise. Unrealised gains arising from transactions with associates are eliminated against the
Unrealised losses are eliminated in the same way as unrealised gains, but
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.1 Basis of consolidation (continued)
(ii) Subsidiaries
Subsidiaries are all entities over which the Company
policies generally accompanying a shareholding of more than one half of the voting
assessing whether the Company
on which control is transferred to the Company and are de-
(iii) Business combinations
The Group uses the acquisition method of accounting to account for business combinations
business combinations under common control)
by the Group. The considerati
a contingent consideration arrangement.
comprehensive income as incurred. Identifiable assets acquired and liabilitie
an acquisition-by-acquisition basis, the Group recognises any non-
either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net assets
The excess of consideration transferred, the amount of any non-
acquisition-date fair value of any previous equity interest i
net assets of the subsidiary acquired in the case of bargain purchase, the difference is rec
in the statement of comprehensive income.
(iv) Non-controlling interests
Non-
the acquiree at the acquisition date. Changes in the Group’s sha
loss of control are accounted for as transactions to owners.
(v) Loss of control over subsidiaries
When the Group loses control of a
statement. Retained share in the former subsidiary is measured at fair value when control is lost.
(vi) Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised gains arising from intra-
eliminated in preparing the consolidated financial statements. Unrealised gains aris
investment in the associate.
only to the extent that there is no evidence of impairment.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
77
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 76
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.2 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 loss, 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.
A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more
frequently when there is 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. Any impairment loss for goodwill is recognised
directly in the consolidated statement of comprehensive income. 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.
3.3 Non-current assets held for sale
Non-current assets and disposal groups (which may include both non-current and current assets and
liabilities directly associated with those assets) are classified in the statement of financial position as ‘held
for sale’ if it is highly probable that their carrying amount will be recovered principally through a sale
transaction within twelve months after the reporting date rather than through continuing use. Non-
current assets classified as held for sale in the current period’s consolidated statement of financial
position are not reclassified in the comparative consolidated statement of financial position.
Held-for-sale property, plant and equipment or disposal groups as a whole are generally measured at the
lower of their carrying amounts and fair values less costs to sell or distribute. Held-for-sale property, plant
and equipment are not depreciated.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
78
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 77
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.4 Revenue recognition
Revenue is measured based on the consideration specified in a contract with a customer. The Group
recognises revenue when it transfers control over a good or service to a customer and specific criteria
have been met for each of the Group’s activities as described below.
Revenue is recognised net of value-added tax, volume rebates, trade discounts and returns.
(i) Revenue from wholesale and retail of merchandise
The Group sells trade goods of third parties (for which the Group is a distributor) as part of its wholesale
and retail activities. Revenue is recognised when the Group has delivered the products to the customer,
there is no continuing management involvement over the goods, and there is no unfulfilled obligation
that could affect the customer’s acceptance of the products.
Delivery does not occur until the products have been shipped to the specified location, the control has
been transferred to the customer and either of the following has occurred: the customer has accepted
the products in accordance with the contract, the acceptance provisions have lapsed or the Group has
objective evidence that all criteria for acceptance have been satisfied. The most common parity is the CIP,
where the control is transferred to the customer at the moment the goods are delivered and the delivery
note is confirmed upon the transfer of goods.
Products are sold with volume discounts and customers have a right to return products in case of defects.
For contracts that permit the customer to return an item, revenue is recognised to the extent that it is
highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur.
Therefore, the amount of revenue recognised is adjusted for expected returns, which are estimated based
on the historical data. In these circumstances, a refund liability and a right to recover returned goods asset
are recognised. The right to recover returned goods asset is measured at the former carrying amount of
the inventory. The refund liability is included in other payables and the right to recover returned goods is
included in inventory. The Group reviews its estimate of expected returns at each reporting date and
updates the amounts of the asset and liability accordingly.
Sales are recorded based on the price specified in the sales contracts, net of estimated volume rebates
and trade discounts and returns. The volume discounts are assessed based on contracts with customers.
No element of financing is deemed present in the sales.
Retail sales are usually in cash or by credit card.
(ii) Revenue from services
The Group generates revenue from services primarily through sales of services such as waste management
and vehicle related services (repairs and similar). Revenue from waste management services is recognised
at a point in time when the services is completed (generally when the waste has been collected for
processing or delivered for processing to third parties as is the case with special and hazardous waste).
Revenues from vehicle related services are recognised over time, by reference to stage of completion
calculated on the basis of the actual services provided as a proportion of the total services to be provided
and are mostly rendered within a very short timeframe of one to several days.
(iii) Finance income
Finance income comprises interest income on funds invested and foreign currency gains. Interest income
is recognised as it accrues, using the effective interest method. Dividend income is recognised when the
right to receive payment is established.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
79
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 78
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.5 Leases - Group as a lessee
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or
contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time
in exchange for consideration. To assess whether a contract conveys the right to control the use of an
identified asset, the Group uses the definition of a lease in IFRS 16.
At commencement or on modification of a contract that contains a lease component, the Group allocates the
consideration in the contract to each lease component on the basis of its relative stand-alone prices.
The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-
use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for
any lease payments made at or before the commencement date, plus any initial direct costs incurred and an
estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site
on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement
date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Group
by the end of the lease term or the cost of the right-of-use asset reflects that the Group will exercise a
purchase option. In that case the right-of-use asset will be depreciated over the useful life of the underlying
asset, which is determined on the same basis as those of property and equipment. In addition, the right-of-
use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of
the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily
determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing
rate as the discount rate.
The Group determines its incremental borrowing rate by obtaining interest rates from various external
financing sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased.
Lease payments included in the measurement of the lease liability comprise the following:
- fixed payments, including in-substance fixed payments;
- variable lease payments that depend on an index or a rate, initially measured using the index or
rate as at the commencement date;
- amounts expected to be payable under a residual value guarantee; and
- the exercise price under a purchase option that the Group is reasonably certain to exercise, lease
payments in an optional renewal period if the Group is reasonably certain to exercise an extension
option, and penalties for early termination of a lease unless the Group is reasonably certain not
to terminate early.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when
there is a change in future lease payments arising from a change in an index or rate, if there is a change in the
Group’s estimate of the amount expected to be payable under a residual value guarantee, if the Group
changes its assessment of whether it will exercise a purchase, extension or termination option or if there is a
revised in-substance fixed lease payment.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying
amount of the right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-use asset
has been reduced to zero.
The Group presents right-of-use assets that do not meet the definition of investment property in separate
line items in the statement of financial position.
Short-term leases and leases of low-value assets
The Group has elected not to recognise right-of-use assets and lease liabilities for leases of low-value assets
and short-term leases, including IT equipment. The Group recognises the lease payments associated with
these leases as an expense on a straight-line basis over the lease term.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
80
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 79
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.6 Foreign currency transactions
(i) Transactions and balances in foreign currencies
Transactions in foreign currencies are translated into the functional currency at the foreign exchange rate
ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at
the reporting date are retranslated into the functional currency at the foreign exchange rate ruling at that
date. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation of monetary assets and liabilities denominated in foreign currencies are recognised in profit
or loss.
Non-monetary assets and items that are measured in terms of historical cost of a foreign currency are not
retranslated.
Non-monetary assets and liabilities denominated in foreign currencies, which are stated at historical cost,
are translated into functional currency at foreign exchange rates ruling at the date of transaction.
(ii) Group companies
Items included in the financial statements of each of the Group’s entities are measured using the currency
of the primary economic environment in which the entity operates (“the functional currency”). The
consolidated financial statements are presented in Croatian kuna (“HRK”), which is also the Company’s
functional currency.
Income and expense items and cash flows of foreign operations are translated into the Company’s and
Group’s presentation currency at rates approximating the foreign exchange rates ruling at the dates of
transactions and their assets and liabilities are translated at the exchange rates ruling at the year end. All
resulting exchange differences are recognised in a separate component of equity. The applicable foreign
exchange rates for relevant currencies are included within currency risk disclosures.
When a foreign operation is sold, such exchange differences are released in profit or loss as part of the
gain or loss on sale of foreign operations.
3.7 Government grants
Government grants are not recognised until there is reasonable assurance that the Group will comply with
the conditions associated with them and that the grants will be received. Government grants are
recognised in profit or loss on a systematic basis over the periods in which the Group recognises as
expenses the related costs for which the grants are intended to compensate. Specifically, government
grants whose primary condition is that the Group should purchase, construct or otherwise acquire non-
current assets are recognised as deferred revenue in the consolidated statement of financial position and
transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets.
Government grants that are receivable as compensation for expenses or loss already incurred or for the
purpose of giving immediate financial support to the Group with no future related costs are recognised in
profit or loss in the period in which they become receivable.
3.8 Dividends
Dividend distribution to the Company’s shareholders is recognised as a liability in the consolidated
financial statements in the period in which the dividends are approved by the General Assembly of the
Company’s shareholders.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
81
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 80
−
−
−
−
−
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.9 Segment reporting
A segment is a distinguishable component 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.
At the consolidated level, the Group internally monitors and reports the following segments:
−
Auto program – vehicles
−
Truck program
−
Batteries, oils and similar
−
Wholesale
−
Ecology
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 (Director or the 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 6 to the consolidated financial statements. Comparative
information is presented using the comparability principle.
3.10 Taxation
(i) Income tax
Income tax expense comprises current and deferred tax. Tax expense is recognised in the statement of
comprehensive income except to the extent that it relates to items recognised in other comprehensive
income or directly in equity, in which case it is recognised in the statement of other comprehensive
income or in equity.
Income tax for the current year is calculated on the basis of the tax laws enacted at the balance sheet
date in countries where the Company and its subsidiaries operate and earn taxable profit.
(ii) Deferred tax assets and liabilities
Deferred tax is recognised using the balance sheet method, providing for temporary differences between
the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for
taxation purposes. Deferred tax is not recognised for the following temporary differences: the initial
recognition of goodwill, the initial recognition of assets or liabilities in a transaction that is not a business
combination and that affects neither accounting nor taxable profit. Deferred tax assets for deductible
temporary differences arising from investments in subsidiaries, and interests in joint arrangements, are
only recognised to the extent that it is probable that the temporary difference will reverse in the
foreseeable future and that taxable profit will be available against which the temporary difference will be
utilised, while liabilities are recognised only to the extent that the entity is able to control the timing of
the reversal of the differences and it is probable that the reversal will not occur in the foreseeable future.
Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences
when they reverse, based on the laws that have been enacted or substantively enacted by the reporting
date.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be
available against which temporary difference can be utilised. Deferred tax assets are reduced to the extent
that it is no longer probable that the related tax benefit will be realised. Deferred tax asset recognised on
the basis of tax losses carried forward is recognised in accordance with tax legislation of the country where
the company operates for the period envisaged by the law and is discharged at the expiry of this period if
it is not used until then.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax
liabilities and assets, and they relate to taxes levied by the same tax authority on the same taxable entity,
or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their
tax assets and liabilities will be realised simultaneously.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
82
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 81
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.10 Taxation (continued)
(iii) Tax exposure
In determining the amount of current and deferred tax, the Group takes into account the impact of
uncertain tax positions and whether additional taxes and interest may be due. This assessment relies on
estimates and assumptions and may involve a series of judgements about future events. New information
may become available that causes the Group to change its judgement regarding the adequacy of existing
tax liabilities; such changes to tax liabilities will impact tax expense in the period that such a determination
is made.
(iv) Value added tax (VAT)
The Tax Authorities require the settlement of VAT on a net basis. VAT related to sales and purchases is
recognised and disclosed in the consolidated statement of financial position on a net basis. Where a
provision has been made for impairment of receivables, impairment loss is recorded for the gross amount
receivable, including VAT.
3.11 Property, plant and equipment
Property, plant and equipment are included in the consolidated statement of financial position at cost
less accumulated depreciation and accumulated impairment losses, if any. Cost includes expenditure that
is directly attributable to the acquisition of the items.
Subsequent expenditure is included in the asset’s carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to
the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is
derecognised. All other repairs and maintenance are charged to the consolidated statement of
comprehensive income during the financial period in which they are incurred.
Land and assets under construction are not depreciated. Depreciation of other items of property, plant
and equipment is calculated using the straight-line method to allocate their cost to their residual values
over their estimated useful lives, as follows:
Buildings
20 to 40 years
Plant and equipment
2 to 10 years
Transport assets
4 to 10 years
The residual value of an asset is the estimated amount that the Group would currently obtain from
disposal of the asset less the estimated costs of disposal, if the asset were already of the age and in the
condition expected at the end of its useful life. The assets’ residual values and useful lives are reviewed,
and adjusted if appropriate, at each reporting date and when necessary.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s
carrying amount is greater than its estimated recoverable amount (note 3.12a).
Gains and losses on disposals are determined as the difference between the income from the disposal
and the asset’s carrying amount, and are recognised in profit or loss within other income/expenses.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
83
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 82
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.12 Intangible assets
Intangible assets are included in the consolidated statement of financial position at cost less accumulated
amortisation and accumulated impairment losses, if any. Cost includes expenditure that is directly
attributable to the acquisition of the items.
Computer software
Computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use
the specific software. These costs are amortised over their useful lives estimated at 5 years.
Brands
Brands arising on an acquisition of a business is carried at fair value as established at the date of acquisition
of the business, less accumulated amortisation. Amortisation is calculated using the straight-line method to
allocate the cost of the brand over its estimated useful life. Brands with an indefinite useful life are not
amortized, but are tested annually for impairment at the cash-generating unit level.
3.12a Impairment of non-financial assets
At each reporting date, the Group reviews the carrying amounts of its non-financial assets (apart from
inventories and deferred taxes) 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. Where it is not possible to estimate the recoverable amount of
an individual asset, the Group estimates the recoverable amount of the “cash-generating unit” (“CGU”) 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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset.
If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the
carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is
expensed immediately. Where an impairment loss subsequently reverses, the carrying amount of the
asset (or CGU) is increased to the revised estimate of its recoverable amount, but so 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 CGU) in prior years. A reversal of an impairment loss is
recognized as income immediately.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
84
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 83
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.14 Inventories
Inventories of raw materials and spare parts are stated at the lower of cost, determined using the
weighted average cost method, and net realisable value. Net realisable value is the estimated selling price
in the ordinary course of business.
The cost of work-in-progress and finished goods comprises raw materials, direct labour, other direct costs
and related production overheads (based on normal operating capacity).
Merchandise is carried at the lower of purchase cost and selling price (less applicable taxes and rebates).
Group annually makes an estimate of inventory value based on turnover of each individual item. Based
on that calculation Group recognises loss allowance for items that fall short of expected turnover rate
for that type of product.
Allowance for items with lower turnover than expected based on historical experience is accounted as
deduction from book value of Inventory and recognised in the income statement.
3.15 Cash and cash equivalents
Cash and cash equivalents comprise cash in hand, deposits held at call with banks and other short-term
highly liquid instruments with original maturities of three months or less. Bank overdrafts are included
within current liabilities on the consolidated statement of financial position.
3.16 Share capital
Share capital consists of ordinary shares. Incremental costs directly attributable to the issue of new shares
or options are shown in equity as a deduction, net of tax, from the proceeds of those transactions. Any
excess of the fair value of the consideration received over the par value of the shares issued is presented
in the notes as a share premium.
In case the Group purchases its own share capital (treasury shares), the consideration paid, including any
directly attributable incremental costs (net of income tax) is deducted from equity attributable to the
Company’s equity holders until the shares are cancelled, reissued or disposed of. Where such shares are
subsequently sold or reissued, any consideration received, net of any directly attributable incremental
transaction costs and the related income tax effects, is included in equity attributable to the Company’s
equity holders.
3.17 Employee benefits
(i) Short-term employee benefits
The Group recognises a provision for employee bonuses where contractually obliged or where there is a
past practice that has created a constructive obligation.
(ii) Pension obligations and post-employment benefits
In the normal course of business, the Group makes payments to mandatory pension funds operated by
third parties on behalf of its employees as required by law. All contributions made to the mandatory
pension funds are recorded as salary expense when incurred. The Group is not obliged to provide any
other post-employment benefits with respect to these pension schemes and they are therefore treated
as defined contribution plans.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
85
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 84
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.18 Provisions
Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past
event and it is probable (i.e. more likely than not) that an outflow of resources 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 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, determined using the estimated risk free interest rate as the discount rate. Where
discounting is used, the reversal of such discounting in each year is recognized as a financial expense and the
carrying amount of the provision increases in each year to reflect the passage of time.
Provisions for restructuring costs are recognized when the Group has a detailed formal plan for the
restructuring that has been communicated to parties concerned.
3.19 Financial instruments
A. Financial assets
(i) Recognition and initial measurement
Trade receivables are initially recognised when they are originated. All other financial assets are initially
recognised when the Group becomes a party to the contractual provisions of the instrument.
A financial asset (unless it is a trade receivable without a significant financing component) is initially measured
at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition or
issue. A trade receivable without a significant financing component is initially measured at the transaction
price.
(ii) Classification and subsequent measurement
On initial recognition, a financial asset is classified as measured at:
- amortised cost;
- FVOCI (fair value through other comprehensive income) – debt investment;
- FVOCI – equity investment;
- or FVTPL (fair value through profit or loss).
Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its
business model for managing financial assets, in which case all affected financial assets are reclassified on the
first day of the first reporting period following the change in the business model.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
86
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 85
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.19 Financial instruments (continued)
A. Financial assets (continued)
(ii) Classification and subsequent measurement (continued)
A financial assets is measured at amortised cost if it meets both of the following conditions and is not
designated as at FVTPL:
- it is held within a business model whose objective is to hold assets to collect contractual cash
flows; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated
as at FVTPL:
- it is held within a business model whose objective is achieved by both collecting contractual cash
flows and selling financial assets; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect
to present subsequent changes in the investment’s fair value in OCI. This election is made on an
investment-by-investment basis.
All financial assets not classified as measured at amortised cost or FVOCI as described above are measured
at FVTPL. This includes all derivative financial assets. On initial recognition, the Group may irrevocably
designate a financial asset that otherwise meets the requirements to be measured at amortised cost or
at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would
otherwise arise.
Business model assessment
The Group makes an assessment of the objective of the business model in which a financial asset is held
at a portfolio level because this best reflects the way the business is managed and information is provided
to management. The information considered includes:
- the stated policies and objectives for the portfolio and the operation of those policies in practice.
These include whether management’s strategy focuses on earning contractual interest income,
maintaining a particular interest rate profile, matching the duration of the financial assets to the
duration of any related liabilities or expected cash outflows or realising cash flows through the
sale of the assets;
- how the performance of the portfolio is evaluated and reported to the Group’s management;
- the risks that affect the performance of the business model (and the financial assets held within
that business model) and how those risks are managed;
- how managers of the business are compensated – e.g. whether compensation is based on the fair
value of the assets managed or the contractual cash flows collected; and
- the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such
sales and expectations about future sales activity.
Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not
considered sales for this purpose, consistent with the Group’s continuing recognition of the assets.
Trade receivables are held in the business model of holding for the purpose of collection.
Financial assets that are held for trading or are managed and whose performance is evaluated on a fair
value basis are measured at FVTPL.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
87
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 86
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.19 Financial instruments (continued)
A. Financial assets (continued)
(ii) Classification and subsequent measurement (continued)
Assessment whether contractual cash flows are solely payments of principal and interest
For the purposes of this assessment, relevant for the purpose of classifying financial assets at amortised
cost, ‘principal’ is defined as the fair value of the financial asset on initial recognition. ‘Interest’ is defined
as consideration for the time value of money and for the credit risk associated with the principal amount
outstanding during a particular period of time and for other basic lending risks and costs (e.g. liquidity risk
and administrative costs), as well as a profit margin.
In assessing the main criterion, i.e. whether the contractual cash flows are solely payments of principal and
interest, the Group considers the contractual terms of the instrument. This includes assessing whether
the financial asset contains a contractual term that could change the timing or amount of contractual cash
flows such that it would not meet this condition.
The structure of the Group’s financial assets is simple and primarily relates to trade receivables without a
significant financial component, loans given and short-term deposits in banks at fixed interest rates, while
forward contracts are of insignificant amount. This significantly reduces the complexity of the assessment
whether the financial assets meet the criterion of ‘solely payments of principal and interest'.
Subsequent measurement and gains and losses
The table below provides an overview of key provisions of the accounting policy used by the Group for
subsequent measurement of financial assets and recognition of gains and losses on each class of financial
assets:
Financial assets
at FVTPL
These assets ar
e subsequently measured at fair value. Net gains and losses,
including any interest or dividend income, are recognised in profit or loss.
Financial assets
at amortised
cost
These assets are subsequently measured at amortised cost using the effective
interest method. The amortised cost is reduced by impairment losses. Interest
income, foreign exchange gains and losses and impairment are recognised in profit
or loss. Any gain or loss on derecognition is recognised in profit or loss.
Debt
investments at
FVOCI
These assets are subsequently measured at fair value. Interest income calculated
using the effective interest method, foreign exchange gains and losses and
impairment are recognised in profit or loss. Other net gains and losses are
ognised in OCI. On derecognition, gains and losses accumulated in OCI are
rec
reclassified to profit or loss.
Equity
investments at
FVOCI
These assets are subsequently measured at fair value. Dividends are recognised as
income in profit or loss unless the dividend clearly represents a recovery of part of
the cost of the investment. Other net gains and losses are recognised in OCI and are
never reclassified to profit or loss.
(iii) Derecognition
The Group derecognises a financial asset when the contractual rights to the cash flows from the financial
asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which
substantially all of the risks and rewards of ownership of the financial asset are transferred or in which
the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does
not retain control of the financial asset.
The Group enters into transactions whereby it transfers assets recognised in its statement of financial
position, but retains either all or substantially all of the risks and rewards of the transferred assets. In
these cases, the transferred assets are not derecognised.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
88
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 87
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.19 Financial instruments (continued)
B. Financial liabilities
(i) Recognition and initial measurement
Debt securities are initially recognised when they are originated. All other financial liabilities are initially
recognised when the Group becomes a party to the contractual provisions of the instrument.
A financial liability is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are
directly attributable to its acquisition or issue.
(ii) Classification and subsequent measurement
Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified
as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial
recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any
interest expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at
amortised cost using the effective interest method. Interest expense and foreign exchange gains and
losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss.
(iii) Derecognition
The Group derecognises a financial liability when its contractual obligations are discharged or cancelled,
or expire. The Group also derecognises a financial liability when its terms are modified and the cash flows
of the modified liability are substantially different, in which case a new financial liability based on the
modified terms is recognised at fair value.
On derecognition of a financial liability, the difference between the carrying amount extinguished and the
consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised in profit
or loss.
C. Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the statement of
financial position when, and only when, the Group currently has a legally enforceable right to set off the
amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability
simultaneously.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
89
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 88
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.19 Financial instruments (continued)
D. Impairment of non-derivative financial assets
Recognition of impairment losses
The Group recognises loss allowances for ECLs on:
- financial assets measured at amortised cost;
- debt investments measured at FVOCI; and
- contract assets.
The Group measures loss allowances at an amount equal to lifetime ECLs, except for the following, which
are measured at 12-month ECLs:
- debt securities that are determined to have low credit risk at the reporting date; and
- other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over
the expected life of the financial instrument) has not increased significantly since initial
recognition.
Loss allowances for trade receivables are always measured at an amount equal to lifetime ECLs.
When determining whether the credit risk of a financial asset has increased significantly since initial
recognition and when estimating ECLs, the Group considers reasonable and supportable information that
is relevant and available without undue cost or effort. This includes both quantitative and qualitative
information and analysis, based on the Group’s historical experience and informed credit assessment and
including forward-looking information.
The Group assumes that the credit risk on a financial asset has increased significantly if early warning
indicators have been activated in accordance with the Group’s policy or contractual terms of the
instrument.
The Group considers a financial asset to be fully or partially in default if:
- the borrower is unlikely to pay its credit obligations to the Group in full, without recourse by the
Group to actions such as realising security (if any is held); or
- the financial asset is more than 360 days past due based on historical experience of average
market participant.
Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial
instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible within the 12
months after the reporting date (or a shorter period if the expected life of the instrument is less than 12
months).
The maximum period considered when estimating ECLs is the maximum contractual period over which
the Group is exposed to credit risk.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the difference
between the cash flows due to the Group in accordance with the contract and the cash flows that the
Group expects to receive. Regular external trade receivables that are not past due and uncollected
receivables past due up to 360 days from the maturity date are impaired using the percentage that reflects
the expectations of the non-collection of trade receivables (ECL). The percentage of impairment is determined
on the basis of the average of the previous three-year period (historical rate) separately for each of the
Group’s companies. The calculation of the historical rate is adjusted for extraordinary and specific
circumstances, if required.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
90
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 89
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.19 Financial instruments (continued)
Credit-impaired financial assets
At each reporting date, the Group assesses whether financial assets carried at amortised cost and debt
securities at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that
have a detrimental impact on the estimated future cash flows of the financial asset have occurred.
Evidence that a financial asset is credit-impaired includes the following observable data:
- significant financial difficulty of the borrower or issuer;
- a breach of contract such as a significant delay of payment by the borrower;
- it is probable that the borrower will enter bankruptcy or other financial reorganisation; or
- the disappearance of an active market for a security because of financial difficulties.
Presentation of allowance for ECL in the statement of financial position.
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying
amount of the assets. For debt securities at FVOCI, the loss allowance is charged to profit or loss and is
recognised in OCI.
Write-off of financial assets
The gross carrying amount of a financial asset is written off when the Group has no reasonable
expectations of recovering a financial asset in its entirety or a portion thereof. The Group has a policy of
writing off the gross carrying amount of a financial asset upon the legal statute of limitation and it
generally expects no recovery of the amount written off.
NOTE 4 – KEY ACCOUNTING JUDGEMENTS AND ESTIMATES
The preparation of financial statements in conformity with EU IFRS requires management to make
judgments, estimates and assumptions that affect the application of policies and reported amounts of
assets and liabilities, income and expenses. The estimates and associated assumptions are based on
historical experience and various other factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making the judgments about carrying values of assets
and liabilities that are not readily apparent from other sources. Actual results may differ from these
estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized 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.
Judgments made by management in the application of EU IFRSs that have significant effect on the financial
statements and estimates with a significant risk of material adjustments in the next year are discussed
more detail below.
(i) Recoverability of trade and other receivables
The recoverable amount of trade and other receivables is estimated at present value of future cash flows
discounted at the market interest rate at the measurement date. Short-term receivables with no stated
interest rate are measured by the amount of original invoice if the effect of discounting is not significant.
The Group regularly reviews the ageing structure of trade receivables and monitors the average collection
period. In cases where debtors with extended payment periods are identified, the Group reduces the
related credit limits and payment days for future transactions and, in cases where it deems it necessary,
imposes restrictions on future transactions until the outstanding balance is repaid either entirely or in
part. In cases where the Group identifies receivables toward debtors which have entered into pre-
bankruptcy or bankruptcy proceedings, an impairment loss is immediately recognised in full.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
91
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 90
NOTE 4 – KEY ACCOUNTING JUDGEMENTS AND ESTIMATES (continued)
(i) Recoverability of trade and other receivables (continued)
By applying the percentage that
reflects expectations on the non-collection of trade receivables (expected
credit loss), the Group impairs undue regular external trade receivables and past due uncollected
receivables up to 360 days from the maturity date.
In the process of regulating the collection of overdue debts, the Group actively negotiates with the
respective debtors taking into account expectations of future business relations, significance of exposure
to an individual debtor, possibilities of compensation, exercise of instruments of security (if any) or seizure
of assets, etc.
(ii) Brands useful life
Expected useful life for all brands is considered indefinite, except in circumstances where factors point to
a definite useful life. Existence of such indications is considered annually.
(iii) Testing for impairment of goodwill and intangible assets with indefinite useful life
Group regularly annually tests goodwill and intangible assets with indefinite useful life and goodwill
for impairment as stated in note 3.12a. Goodwill and intangible assets with indefinite useful life are
tested individually.
Goodwill and brands are allocated for the purposes of impairment testing to cash-generating units
within business segments, and their net book value on the reporting date is as follows:
2022
2021
(in thousands of HRK)
(in thousands of HRK)
Brand Goodwill Brand Goodwill
Accumulators and oil
-
1,126
-
-
Truck program
-
1,441
-
-
Auto program
49,191
1,738
49,191
-
49,191
4,305
49,191
-
T
he recoverable amount of cash-generating units is determined by value in use or fair value calculations
that are based on cash flow projections based on financial plans approved by the Management Board
and covering a five-year period.
Goodwill
Goodwill was recognized as a resukt of the acquisitions of subsidiaries Euroguma trade d.o.o. (later
renamed to Ciak dooel), DBH d.o.o., Mika komerc d.o.o. during 2022. The Group annually performs an
impairment test to assess whether the recoverable amount of goodwill indicates a potential impairment
of the book value. The calculation of the recoverable value of goodwill is based on the five-year business
plans of the subsidiary developed by the Group, taking into account the corporate sales and marketing
strategy, trends in the relevant market (such as expected trends in gross domestic product, market share
of relevant products and categories) and competitor analysis.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
92
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 91
NOTE 4 – KEY ACCOUNTING JUDGEMENTS AND ESTIMATES (continued)
(iii) Testing for impairment of goodwill and intangible assets with indefinite useful life
Goodwill (continued)
The recoverable amount calculation also implies a terminal growth rate of cash flows after a five-year
period of 3%. Cash flows created from such plans are discounted using an after-tax discount rate that
reflects the risk of the respective asset, which for the purposes of the goodwill impairment test is equal
to the weighted average cost of capital after tax for the relevant market and industry and amounts to
11.7% to 13.9%.
As a result of the conducted goodwill impairment test, the Group had no goodwill impairment expense
during 2022.
The sensitivity analysis of the assumptions indicates the need to reduce the value of goodwill in the event
of an increase in the rate of weighted average cost of capital by 50 basis points or a decrease in the
terminal growth rate (with an unchanged rate of weighted average cost of capital) by 50 basis points.
Brands
Brands refer to the acquired rights to use trademarks and brand names that the Group allocates to
business segments in accordance with the internal categorization of products to which a specific brand
refers, whereby the value of the brand is fully allocated to a specific segment.
The Group annually performs an impairment test for brands to assess whether the recoverable amount
of the brands indicates a potential impairment of the book value, whereby the primary focus is given to
those brands where the deviation of the recoverable amount compared to the book value indicates a
significant sensitivity to the key assumptions used in the impairment tests. The calculation of the
recoverable amount is based on the five-year sales plans of the products that make up each brand, which
the Group developed taking into account the corporate sales and marketing strategy, trends in the
markets where individual brands are sold (such as expected trends in the subject gross social product,
market share of relevant products and categories) and competitor analysis.
Cash flows generated from such plans are discounted using an after-tax discount rate that reflects the risk
of the asset in question and which, for purposes of calculating the impairment test, is approximated by
the weighted average cost of capital (WACC) related to the primary sales market of the particular brand
and industry.
To calculate the recoverable value of the brands as of 31 December 2022, the group applied the income
approach - the relief from royalty method.
The basis of the relief from royalty method states that the value of an intangible asset is equal to the
amount that the owner would pay for a license over that asset if he did not own it, that is, the value is
equal to the discounted after-tax savings in a situation of non-payment of royalties, i.e. fees for the use
of trademarks.
When calculating the recoverable value of brands, rates were used that are equal to the weighted average
cost of capital after tax (WACC) for a particular market and industry and are within the range of 15.7% to
16.6% (2021: in the range of 13.8% to 15.8%), while the applied terminal growth rate for all brands is 3%
(in 2021 in the range 1.4% to 2%).
As a result of the brand impairment test, the Group had no brand impairment expense during 2022.
An increase in the weighted average cost of capital by 50 basis points with an unchanged terminal growth
rate would result in a decrease in value in the amount of HRK 579 thousand. A decrease in the terminal
growth rate with an unchanged rate of the weighted average cost of capital by 50 basis points would
result in a decrease in value in the amount of HRK 1,303 thousand.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
93
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 92
NOTE 5 – DETERMINATION OF FAIR VALUES
The Group has an established control framework with respect to fair value measurement which assumes
the overall responsibility of the Management Board and finance department in relation to the monitoring
of all significant fair value measurements, consultation with external experts and the responsibility to
report, with respect the above, to those charged with corporate governance.
Fair values are measured using information collected from third parties in which case the Board and the
finance department assess whether the evidence collected from third parties support the conclusion that
such valuations meet the requirements of IFRSs, including the level in the fair value hierarchy where such
valuations should be classified.
Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the
valuation techniques as follows:
- Level 1 - quoted prices (unadjusted) in active markets for identical assets
or liabilities.
- Level 2 - inputs other than quoted prices included in level 1, that are
observable for the asset or liability either directly (i.e. as prices) or indirectly
(i.e. derived from prices).
- Level 3 - input variables for assets or liabilities that are not based on
observable market data (unobservable inputs).
The fair value of financial instruments traded in active markets is based on quoted market prices at the
balance sheet date. A market is regarded as active if quoted prices are readily and regularly available from
an exchange, dealer, broker, industry group, or regulatory agency, and those prices represent actual and
regularly occurring market transactions on an arm’s length basis.
The fair value of financial instruments that are not traded in an active market (for example, over-the-
counter derivatives) is determined by using valuation techniques. These valuation techniques maximise
the use of observable market data where it is available and rely as little as possible on entity specific
estimates. If all significant inputs required to fair value an instrument are observable, the instrument is
included in level 2.
If one or more significant inputs are not based on observable market data, the fair value estimate is
included in level 3.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
94
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 93
−
−
−
−
−
NOTE 6 – SALES REVENUE
2022
2021
(in thousands of HRK)
Revenue from products
1,608,183
1,262,566
Waste management services
62.630
58,448
Revenue from other services
32,051
15,793
Other
3,620
8,529
1,706,484
1,345,336
Other sales revenues are mostly comprised of revenues from marketing a
nd leasing activities.
For management purposes, the Group is organised in business units based on the similarity in the nature
of individual product groups and the nature of the distribution and sales channel and has identified
reportable segments in accordance with quantitative thresholds for segment reporting. The reportable
segments of the Group are as follows:
−
Auto program – vehicles
−
Truck program
−
Batteries, oils and similar
−
Wholesale
−
Ecology
The reportable segments are part of the internal financial reporting to the Management Board which was
identified as the chief operating decision maker. The Management Board reviews the internal reports
regularly and assesses the segment performance, and uses those reports in making operating decisions.
Segment revenues and results
Set out below is an analysis of the Group’s revenue and results by its reportable segments, presented in
accordance with IFRS 8 Operating segments and a reconciliation of segment profits to profit or loss before
tax as presented in the consolidated statement of comprehensive income. The revenue presented below
relates to third-party sales and revenues between segments. Intra-segment revenues are eliminated on
consolidation.
(in thousands of HRK)
Segment revenues
Segment profit
2022
2021
2022
2021
Auto program - vehicles 1,156,455 823,078 73,798 68,113
Truck program 274,439 223
,886 8,041 5,748
Batteries, oils and similar 370,840 314
,189 19,490 18,968
Wholesale 67,975 60
,544 4,737 5,515
Ecology 175,500 177
,455 7,531 9,693
2,045,209
1,599,152
113,596
108,037
Inter-segment revenues
(338,725) (253,816)
-
-
1,706,484
1,345,336
113,596
108,037
Finance income
4,943
3,891
Finance expenses
(16,756)
(12,476)
Central administration and other costs
(39,788)
(17,094)
Profit before tax
61,995
82,358
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
95
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 94
NOTE 6 – SALES REVENUE (CONTINUED)
Segment revenues and results (continued)
The segment “Auto program – vehicles” operates as a retail channel for sales of auto parts in the
"Independent Aftermarket" (IAM), i.e. market for repair and maintenance of vehicles. Typical products
are brakes, filters, wipers, shock absorbers, lights, suspension parts, batteries, tires, oils, antifreeze,
accessories, etc.
Truck program operates as wholesale of truck parts in the IAM. Typical products are brakes, filters, wipers,
shock absorbers, lights, suspension parts, batteries, tires, oils, antifreeze, accessories, etc.
Generators, oils and similar includes the wholesale of batteries, industrial batteries, oils, lubricants and
other automotive equipment such as brooms, additives, etc. through several sales channels: wholesale in
the IAM, wholesale to products end users, wholesale to gas stations and retail.
Wholesale segment relates to wholesale to large retail chains which includes sales of car supplies (e.g. car
cosmetics, windshield washer fluid, steering wheel covers, batteries, etc.), textiles (bedding, towels,
blankets, etc.), garden program (mowers, trimmers, flaxers, saws) to retail chains.
Ecology comprises two sub-segments: recycling and waste management. The recycling operations relate
to the recycling of accumulators and industrial batteries at the Recycling Center in Zabok, which is the only
closed system for recycling accumulators and batteries in Croatia. Waste management includes the
collection, treatment and disposal of hazardous and non-hazardous waste (e.g. motor oils, filters, grease,
etc.), remediation of contaminated sites, maintenance of industrial plants, consulting services related to
hazardous waste, etc.
The accounting policies of the reportable segments are the same as the Group’s accounting policies
described in note 3. Segment profit represents the profit earned by each segment without allocation of
central administration costs, other income, other expenses, finance expenses, and income tax expense.
Geographical information
The Group expanded its operations through acquisitions and now operates in six principal geographical
areas by which it reports third-party sales:
(in thousands of HRK)
2022
2021
Croatia
1,100,678
970,313
Serbia
234,648
133,265
Bosnia and Herzegovina
223,352
141,145
Slovenia
5,060
7,367
Montenegro
122,596
86,204
North Macedonia
20,150
7,042
1,706,484
1,345,336
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
96
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 95
NOTE 6 – SALES REVENUE (CONTINUED)
Non-current assets (intangible assets, property, plant and equipment and right of use assets) based on the
geographical areas are presented as follows:
(in thousands of HRK)
2022
2021
(in thousands of HRK)
Croatia
329,913
239,421
Serbia
25,621
29,184
Bosnia and Herzegovina
57,022
86,529
Slovenia
31
50
Montenegro
12,638
28,769
North Macedonia
1,928
495
427,153
384,448
NOTE 7 – OTHER INCOME
2022
2021
(in thousands of HRK)
Income from damage claims
2,445
1,561
Gain from sale of non-current assets
2,443
242
Rent income
1,017
848
Subsidies
677
466
Write-off of liabilities
199
643
Reversal of impaired receivables
-
6,916
Other income
2,634
2,480
9,415
13,156
During 2021, the Group acquired a receivable containing mortgage right on land. In a subsequent
transaction, the Group purchased the land at auction in exchange for receivables and recognized income
from the collection of receivables in the amount of HRK 6,916 thousand, i.e. in the amount of the surplus
value of the purchased land over the acquisition price.
NOTE 8 – MATERIAL COSTS
2022
2021
(in thousands of HRK)
Cost of goods sold
938,449
761,820
Raw materials and consumables used
222.226
175,608
-
1,160,675
937,428
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
97
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 96
NOTE 9 – OTHER OPERATING EXPENSES
2022
2021
(in thousands of HRK)
Transport and logistics
21,641
20,517
Vehicle and similar repairs
11,266
9,005
Maintenance
10,604
8,152
Advertising and similar costs
9.522
4,809
Rent expense
6,666
4,840
Vehicle costs
6,312
4,425
Intellectual services
6,177
4,903
Daily subsistence allowances and other travel expenses
5.609
4.285
Banking and similar charges
5.571
4,494
Entertainment
5,322
3,342
Taxes, fees and similar charges
4.535
3,418
Telecommunications and postal services
4.135
3,422
Insurance
3,958
3,165
Utilities and fees
3,382
2,581
Inventory surpluses / shortfalls
3.131
596
Write-off of receivables
3,082
2,298
Office materials
2,308
1,543
Membership fees, fees and similar charges
1.864
2,083
Security services
1,511
1,358
Authors fee
898
849
Impairment
728
767
Legal expenses
557
552
Penalties, penalties and damages
383
460
Donations
206
159
Damage compensation
-
-
Increase/(decrease) in provisions
(1.118)
(69)
Other costs
5,647
7,793
123,897
99,747
N
OTE 10 – EMPLOYEE EXPENSES
2022
2021
(in thousands of HRK)
Net salaries
190,126
130,041
Taxes and contributions
76,702
59,997
Other employee' costs
19,750
11,703
-
286,578
201,741
As at 31 December 2022, the number of staff employed by the Group was 2,339 (2021: 2,028). Average
number of employees in 2022 was 2,177 (2021: 1,855). Other employee costs primarily relate to transport
costs and bonuses.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
98
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
CIAK Grupa d.d. and its subsidiaries 97
FOR THE YEAR ENDED 31 DECEMBER 2022
NOTE 11 – FINANCE INCOME
2022
2021
(in thousands of HRK)
Positive FX difference
3,861
3,455
Interest income
224
157
Other finance income
7
280
4,092
3,892
NO
TE 12 – FINANCE EXPENSES
2022
2021
(in thousands of HRK)
10,253
6,435
5,648
5,318
3
7
-
716
-
15,904
12,476
Interest expenses and similar
Negative FX difference
Other finance costs
Unrealised losses (expenses) from financial assets
NOTE 13 – INCOME TAX
Income tax expense consists of:
2022
2021
(in thousands of HRK)
Current income tax
14,482
12,226
Additional income tax
2,030
-
Deferred tax
(653)
35
-
-
15,859
12,261
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
99
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
CIAK Grupa d.d. and its subsidiaries 98
FOR THE YEAR ENDED 31 DECEMBER 2022
NOTE 13 – INCOME TAX (continued)
A reconciliation of tax expense per the statement of comprehensive income and taxation at the statutory
rate is detailed in the table below:
2022
2021
(in thousands of HRK)
Profit before taxation
61,995
82,358
-
Income tax at 18%
11,159
14,824
Non-taxable income
(27)
(4,845)
Non-deductible expenses
2,161
3,175
Temporary differences and tax losses not recognised as deferred tax assets
72
16
Utilisation of tax losses previously not recognised as deferred tax asset
(53)
(186)
Effect of a change in the tax rate on deferred tax assets and liabilities
517
(723)
Additional profit tax*
2,030
-
-
Income tax
15,859
12,261
Effective tax rate
26%
15%
I
n accordance with the Law on Additional Income Tax, which is in force from 23 December 2022, the tax
base for the additional tax is the positive difference between the taxable profit from the 2022 tax period
and the average taxable profit from the four previous tax periods increased by 20%. The tax rate of
additional profit tax is 33%.
In its financial statements, the Group did not recognized deferred tax assets on tax losses, since it is not
certain that the tax losses will be used by the companies to which they relate. Unutilized tax losses (net)
at the reporting date were as follows:
2022
2021
(in thousands of HRK)
Tax losses expiring at 31 December 2022 - 13
Tax losses expiring at 31 December 2024
67
262
Tax losses expiring at 31 December 2025
94
500
Tax losses expiring at 31 December 2026
379
-
Tax losses expiring at 31 December 2027
1,578
-
Tax losses expiring at 31 December 2029
-
171
Tax losses expiring at 31 December 2030
-
100
2,118
1,046
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
100
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 99
NOTE 13 – INCOME TAX (continued)
Deffered tax assets
(in thousands of HRK)
PPE and
leases
Trade and
other
receivables
Inventory
Trade and
other
payables
Total
Cost
At 1 January 2022
265
1,060
375
469
2.169
Business combinations
12
-
-
-
12
Net increase/(decrease)
564
72
(198)
101
539
As at 31 December 2022
841
1,132
177
570
2,720
D
eferred tax liabilities
(in thousands of
HRK)
PPE
Intangible
assets
Trade and
other
receivables
Total
At 1 January 2022
513
5,340
136
5.989
Net increase/ (decrease)
-
-
(114)
(114)
As at 31 December 2022
513
5,340
22
5,875
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
101
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 100
NOTE 14 – INTANGIBLE ASSETS AND GOODWILL
(in thousands of HRK)
Goodwill
Brand
Software
Leasehold
improvements
Investments
in progress
Total
Cost
At 1 January 2021
-
-
7,865
6,671
481
15,017
Additions
-
-
662
-
1,768
2,430
Business combinations
-
49,191
2,230
407
-
51,828
Transfers
-
-
1,648
192
(1,840)
-
Disposals and write offs
-
-
(38)
-
-
(38)
Loss of control
-
-
(35)
(100)
-
(135)
As at 31 December 2021
-
49,191
12,332
7,170
409
69,102
Accumulated amortisation
At 1 January 2021
-
-
4,120
4,659
-
8,779
Business combinations
-
-
1,293
-
-
1,293
Charge for the year
-
-
917
581
-
1,498
Disposals and write offs
-
-
-
(135)
-
(135)
Loss of control
-
-
(35)
-
-
(35)
As at 31 December 2021
-
-
6,295
5,105
-
11,400
Cost
At 1 January 2022
-
49,191
12,332
7,170
409
69,102
Additions
-
-
43
478
6,296
6,817
Business combinations
4,304
-
21
-
-
4,325
Transfers
-
-
2,607
3,590
(6,197)
-
Disposals and write offs
-
-
(207)
(492)
-
(699)
As at 31 December 2022
4,304 49,191 14,796 10,745 508 79,545
Accumulated amortisation
At 1 January 2022
-
-
6,295
5,105
-
11,400
Business combinations
-
-
4
-
-
4
Charge for the year
-
-
1,231
1,246
-
2,477
Disposals and write offs
-
-
(31)
(562)
-
(594)
As at 31 December 2022
- - 7,499 5,789 - 13,287
Carrying amount
As at 1 January 2022
-
49,191
6,037
2,065
409
57,702
As at 31 December 2022
4,304
49,191
7,298 4,957 508 66,258
Tes
ting for impairment of goodwill and intangible assets with indefinite useful life is disclosed in Note 4.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
102
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 101
Land and buildings with a carrying value of HRK 50,939 thousand (2021: HRK 50,880 thousand) are under
mortgage and collateral for bank loans.
NOTE 15 – PROPERTY, PLANT AND EQUIPMENT
(in thousands of HRK)
Land
buildings
and
Plant and
equipment
Transport
assets
Assets
construction
under
Total
Cost
At 1 January 2021
120,120
82,994
29,078
2,120
234,312
Additions
-
-
1,485
65,603
67,088
Business combinations
8,676
10,624
7,828
-
27,128
Transfers
25,867
13,607
8,542
(48,016)
-
Disposals and write offs
-
(2,336)
(3,072)
-
(5,408)
Loss of control
-
(1,613)
-
-
(1,613)
As at 31 December 2021
154,663
103,276
43,861
19,707
321,507
Accumulated depreciation and impairments
At 1 January 2021
39,024
44,513
18,725
-
102,262
Business combinations
3,506
7,299
5,114
-
15,919
Charge for the year
5,072
11,425
4,623
-
21,120
Disposals and write offs
-
(1,708)
(2,505)
-
(4,213)
Loss of control
-
(992)
-
-
(992)
As at 31 December 2021
47,602
60,537
25,957
-
134,096
Cost
At 1 January 2022
154,663
103,276
43,861
19,707
321,507
Additions
43
9,856
3,839
29,993
43,731
Business combinations
-
4,836
375
-
5,211
Transfers
16,134
7,882
559
(24,575)
-
Disposals and write offs
-
(2,351)
(2,146)
(57)
(4,554)
As at 31 December 2022
170,840
123,499
46,488
25,068
365,895
Accumulated depreciation and impairments
At 1 January 2022
47,602
60,537
25,957
-
134,096
Business combinations
-
3,649
1,129
-
4,778
Charge for the year
5,412
14,527
6,082
-
26,021
Disposals and write offs
-
(1,364)
(2,954)
-
(4,318)
As at 31 December 2022
53,014
77,349
30,214
-
160,577
Carrying amount
As at 1 January 2022
107,061
42,739
17,904
19,707
187,411
As at 31 December 2022
117,826
46,150
16,274
25,068
205,318
Assets under construction mainly relate to buildings and plant and equipment.
Assets under mortgage
Land and buildings with a carrying value of HRK 50,939 thousand (2021: HRK 50,880 thousand) are under
mortgage and collateral for bank loans.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
103
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 102
NOTE 16 – RIGHT OF USE ASSETS
(in thousands of HRK)
Land and
buildings
Plant and
equipment
Transport
assets
Total
Cost
At 1 January 2021
86,327
18,378
29,415
134,120
New contracts
83,964
505
8,215
92,684
Business combinations
20,691
-
-
20,691
Modifications and contract
terminations
(42,665)
(1,029)
(358)
(44,052)
Loss of control
(1,978)
-
-
(1,978)
As at 31 December 2021
146,339
17,854
37,272
201,465
Accumulated depreciation
and impairments
At 1 January 2021
42,778
8,008
12,918
63,704
Business combinations
605
-
-
605
Charge for the year
21,036
2,106
4,979
28,121
Modifications and contract
terminations
(28,044)
(1,029)
(335)
(29,408)
Loss of control
(892)
-
-
(892)
As at 31 December 2021
35,483
9,085
17,562
62,130
Cost
At 1 January 2022
146,339
17,854
37,272
201,465
New contracts
43,698
1,595
17,759
63,052
Business combinations
848
-
716
1,564
Modifications
36
-
-
36
Contract terminations
(14,307)
(1,933)
(4,963)
(21,203)
As at 31 December 2022
176,615
17,516
50,784
244,915
Accumulated depreciation and impairments
At 1 January 2022
35,483
9,085
17,562
62,130
Business combinations
-
-
162
162
Charge for the year
32,819
2,278
7,664
42,761
Modifications
(1,633)
-
-
(1,633)
Contract terminations
(9,482)
(1,644)
(2,956)
(14,082)
As at 31 December 2022
57,187
9,720
22,431
89,338
Carrying amount
As at 1 January 2022
110.856
8,769
19,710
139,335
As at 31 December 2022
119,428
7,797
28,353
155,577
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
104
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
CIAK Grupa d.d. and its subsidiaries 103
FOR THE YEAR ENDED 31 DECEMBER 2022
NOTE 17 – EQUITY ACCOUNTED INVESTEES
2022
(in thousands of HRK)
As at 1 January
2,260
Share in profit
67
Exchange differences
(25)
As at 31 December
2,302
A
s at 1 January 2021, the Group no longer has control over Kamioland d.o.o. However, through
ownership of 50%, the Group retained a significant influence over the company. As of 1 January 2021
Kamioland d.o.o. is accounted as equity accounted investee.
NOTE 18 – F
INANCIAL ASSETS
2022
2021
(in thousands of HRK)
Deposits
2,595
8,576
2,595
8,576
Short term
207
6,034
Long term
2,388
2,542
2,595
8,576
Deposits relate to deposits at commercial banks with maturity more than three months that carry a
variable interest rate up to 0,01% (2021: 0.01%).
NOTE 19 – INVENTORIES
2022
2021
(in thousands of HRK)
Raw materials and supplies
34,241
26,407
Trade goods and merchandise
588.117
501,668
Small inventory
407
539
Advances for inventories
4,725
6,685
Inventory deposits
6,849
-
-
634,339
535,299
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
105
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 104
NOTE 19 – INVENTORIES (CONTINUED)
Movements in write-down of inventory is recognized in other operating operations within profit or loss.
In 2022 it is amounted to 9,522 thousands of HRK (2021: 4,809 thousands of HRK).
In accordance with accounting policies, the Group analyses the expected turnover per item based on
historical sales information and, based on the results of the analysis, recognizes a decrease in the value of
inventories to the estimated net realizable value.
The Group is actively using its presence on multiple markets to optimize inventory management.
In other markets e.g. Serbia, Bosnia and Hercegovina and Montenegro, average age of vehicles is
significantly higher than in Croatia and therefore demand for some slow moving parts is also higher.
Group expects further synergic effects to occur due to acquisitions on other markets.
NOTE 20 – TRADE AND OTHER RECEIVABLES
2022
2021
(in thousands of HRK)
Trade receivables
260,186
231,386
Impairment of receivables
(24,917)
(21,645)
Net trade receivables
235,269
209,741
-
Interest receivables
366
350
Receivables for taxes and contributions
9.660
13,552
Advances given
2,136
3,599
Receivables from employees
683
545
Loans receivable
4,809
7,031
Accrued rebates
25,620
22,814
Prepayments
5,228
5,556
Other receivables
3,394
2,480
-
287,165
265,668
Short term
285,256
263,595
Long term
1,909
2,073
287,165
265,668
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
106
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
CIAK Grupa d.d. and its subsidiaries 105
FOR THE YEAR ENDED 31 DECEMBER 2022
NOTE 20 – TRADE AND OTHER RECEIVABLES (continued)
During 2022, within other operating expenses the Group recognised impairment allowances in the
amount of HRK 3,131 thousand (2021: HRK 596 thousand) with respect to trade receivables and other
receivables.
Movement in the accumulated impairment allowance for trade and other receivables was as follows:
2022
2021
(in thousands of HRK)
At 1 January
21,645
15,224
Net Increase/decrease
4,502
3,731
Amounts collected
(1,371)
(3,135)
Business combinations
1,836
6,476
Written off as uncollectable
(1,695)
(651)
-
At 31 December
24,917
21,645
A
geing analysis of gross trade receivables:
2022
2021
(in thousands of HRK)
Not due
141,545
122,971
0-90 days
60,079
72,832
91-180 days
19,147
9,413
181-360 days
12,189
8,705
More than 360 days
29,580
17,465
262,540
231,386
The Group uses an allowance matrix to measure the ECLs of trade receivables from individual customers,
which comprise a very large number of small balances. Loss rates are calculated using a “roll rate” method
based on the probability of a receivable progressing through successive stages of delinquency to write-
off. Roll rates are calculated separately for exposures in different segments based on the following
common credit risk characteristics – geographic region, age of customer relationship and type of product
purchased. Loss rates are based on actual credit loss experience over the three years.
Trade receivables in original currency (net amount):
2022
2021
(in thousands of HRK)
HRK
124,992
123,598
EUR
41,427
33,641
BAM
26,816
24,376
RSD
32,650
27,227
MKD
5,662
899
USD
3,722
-
235,269
209,741
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
107
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
CIAK Grupa d.d. and its subsidiaries 106
FOR THE YEAR ENDED 31 DECEMBER 2022
NOTE 21 – CASH AND CASH EQUIVALENTS
2022
2021
(in thousands of HRK)
Cash register
1,159
1,204
Cash with banks
104,795
74,342
105,954
75,546
Cash with banks relates to transaction accounts at commercial banks that carry an average interest
rate around 0,01%. The table below summarises cash and cash equivalents by currency:
2022
2021
(in thousands of HRK)
HRK
70,057
57,473
EUR
14,385
5,323
RSD
10,825
4,583
BAM
9,954
5,512
MKD
589
876
Other
144
1,779
-
105,954
75,546
N
OTE 22 – NON-CURRENT ASSETS HELD FOR SALE
2022
2021
(in thousands of HRK)
Land and buildings
2,169
1,621
2,169
1,621
No
n-current assets held for sale relates to smaller items of real-estate.
NOTE 23– SHARE CAPITAL AND EARNINGS PER SHARE
Share capital
At the end of December 2019, the Company was transformed into a joint-stock company. After the
restructuring, an inter-ownership transaction was carried out, whereby Ivan Leko retained the
majority ownership and control over the Company/Group and is the ultimate owner of the parent
company.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
108
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
CIAK Grupa d.d. and its subsidiaries 107
FOR THE YEAR ENDED 31 DECEMBER 2022
NOTE 23– SHARE CAPITAL AND EARNINGS PER SHARE (CONTINUED)
During 2020 share equity of the Company has been increased by HRK 63,456 thousand via issuance of
new shares. Furthermore, this transaction resulted with additional capital gain on issued shares in the
amount of HRK 154,404 thousand. Transaction costs related to issue of shares amounted to HRK 1,923
thousand and were presented as a reduction of capital reserves.
Share capital on the 31 December 2022 amounts to HRK 197,520 thousand and consists of 19,751,989
shares (2021: 19,751,989). Nominal share price is 10 HRK per share. Regular shares of the Group were
listed on the Zagreb Stock exchange as at 29 December 2020.
The ownership structure at the reporting dates was as follows:
2022
2021
Ownership
structure
Number of
shares
% of ownership
Number of
shares
% of ownership
Ivan Leko
9,989,438
50.57%
9,977,250
50.51%
Ljilja Leko
3,180,140
16.10%
3,180,140
16.10%
Others
6,582,411
33.33%
6,594,599
33.39%
Total
19,751,989
100.00%
19,751,989
100.00%
E
arnings per share
2022
2021
(in thousands of HRK)
Profit attributable to owners
46,237
70,114
Shares outstanding as at 31. December
19,658,239
19,681,989
Average weighted number of shares
19,673,338
19,748,921
Basic earnings per shar
2.35
3.56
Diluted earnings per share
2.35
3.55
N
OTE 24 – CAPITAL RESERVES
During 2020, capital reserves were increased for the amount of HRK 152,480 thousands, which is related
to the capital reserves increase after the issuance of new shares which was disclosed in more details in
Note 23.
NOTE 25 – TREASURY SHARES
During 2022, the Group purchased 23,750 shares in the amount of HRK 1,005 thousands (2021: 70,000
shares in the amount of HRK 2,800 thousand). As at 31 December 2022 treasury shares amount to HRK
1,686 thousands (2021: HRK 2,800 thousand).
During 2022, the Group awarded its own shares in the amount of HRK 2,120 thousand to Group
employees.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
109
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 108
NOTE 26 – NON-CONTROLLING INTERESTS
Group has non-controlling interests arising from ownership interest in subsidiaries Autodijelovi d.o.o.
(Croatia) and Bendj trade d.o.o. (Bosnia and Herzegovina). In 2021. Due to loss of control of Kamioland,
is now accounted through equity accounting Summary financial information for these companies are
as follows:
31 December 2022
AUTO
d.o.o.
DIJELOVI
BENDJ
d.o.o.
TRADE
(in thousands of HRK)
Non-controlling interest
50%
38%
Non-current assets
2
2.021
Current assets
1,907
2
Non-current Liabilities
(75)
-
Current liabilities
(1,328)
(209)
-
-
Net assets
506
1.814
Statement of comprehensive income
Revenues
2,919
-
Loss
(179)
(24)
Total comprehensive loss
(6)
(28)
Statement of cash flows
Increase/ (decrease) of cash and cash equivalents
55
(2)
The movement in non-controlling interest was as follows:
2022.
2021.
(in thousands of HRK)
-
-
As at 1. January 2022
8
3.829
Loss of control
-
(3.804)
Share in loss for the year
(101)
(17)
As at 31 December 2022
(93)
8
Relates to:
Auto Dijelovi d.o.o.
(61)
28
Bendj trade d.o.o.
(32)
(20)
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
110
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 109
NOTE 27 – LOANS AND BORROWINGS
2022
2021
(in thousands of HRK)
Non-current borrowings
Bank borrowings
164,360
197,958
Other loans
853
193
Lease liabilities
110,538
103,566
275,751
301,717
Current borrowings
Bank borrowings
146,911
73,270
Other loans
3,521
4,164
Interest liabilities
634
366
Lease liabilities
45,440
32,876
196,506
110,676
-
Total borrowings
472,257
412,393
Th
e Group’s borrowings contain covenants which obligate the Group to comply with (such as DSCR).
In case the specified ratios are breached, the loans would be considered matured in full and payable
on the bank’s request. At the reporting dates, the Group was in compliance with the covenants.
Bank loans in the amount of HRK 256,173 thousand (2021: HRK 228,844 thousand) are insured through
mortgages on land, buildings, plant and equipment amounting to HRK 50,939 thousand (2021: HRK
50,880 thousand) as stated in note 15.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
111
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 110
NOTE 27 – LOANS AND BORROWINGS (CONTINUED)
The maturity of non-current bank borrowings and other loans is as follows:
2022
2021
(in thousands of HRK)
Between 1 and 2 years
51,464
52,207
Between 2 and 5 years
95,201
117,170
Over 5 years
18,548
28,774
165,213
198,151
The maturity of non-current lease liabilities is as follows:
2022
2021
(in thousands of HRK)
Between 1 and 2 years
34,705
27,284
Between 2 and 5 years
52,249
48,164
Over 5 years
23,584
28,118
110,538
103,566
The carrying amounts of the Group’s borrowings are denominated in the following currencies (in HRK
thousand):
Loans and borrowings
2022.
2021.
(in thousands of HRK)
HRK
79,053
4,357
EUR
226,487
266,877
BAM
5,454
4,350
MKD
3,960
-
RSD
691
-
Total
315,645
275,584
Leases
2022.
2021.
(in thousands of HRK)
HRK
12,618
12,854
EUR
109,813
86,899
BAM
33,547
33,735
Total
155,978
133,488
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
112
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 111
NOTE 27 – LOANS AND BORROWINGS (CONTINUED)
An overview of borrowings by fixed and variable interest rates is as follows:
2022
2021
Fixed
Variable
Fixed
Variable
(in thousands of HRK)
Non-current borrowings
18,139
147,074
2,445
195,706
Current borrowings
32,487
117,945
26,501
50,933
50,626
265,019
28,946
246,639
The average weighted cost of debt on the Group’s interest-bearing liabilities was as follows:
2022.
2021.
HRK
EUR
HRK
EUR
Average weighted interest rate
0.94%
1.97%
2.00%
1.33%
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
113
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
CIAK Grupa d.d. and its subsidiaries 112
FOR THE YEAR ENDED 31 DECEMBER 2022
NOTE 27 – LOANS AND BORROWINGS (CONTINUED)
Reconciliation of movements in liabilities with cash flows from financing activities:
(in thousands of HRK)
Loans and
borrowings
Leases
Total
At 1 January 2021
202,518
64,020
266,538
Cash transactions:
Loans received
130,292
-
130,292
Loans repayments
(65,405)
-
(65,405)
Lease repayments
-
(32,363)
(32,363)
Total cash transactions
64,887
(32,363)
32,524
Non - cash transactions:
Effect of change in exchange rates
689
(1,002)
(313)
Business combinations
9,844
20,777
30,621
Unwinding of discount
-
1,467
1,467
New lease contracts
-
100,185
100,185
Loss of control
(2,354)
(1,461)
(3,815)
Termination of lease contract
-
(15,181)
(15,181)
Total non - cash transactions
8,179
104,785
112,964
At 31. December 2021
275,584
136,442
412,026
At 1. January 2022
275,584
136,442
412,026
Cash transactions:
Loans received
102,662
-
102,662
Loans repayments
(66,516)
-
(66,516)
Lease repayments
-
(51,354)
(51,354)
Total cash transactions
36,146 (51,354) (15,208)
Non - cash transactions:
Effect of change in exchange rates
(1.363)
(372)
(1,735)
Business combinations
5,278
1,402
6,680
Unwinding of discount
-
3,565
3,565
New lease contracts
-
76,115
76,115
Termination of lease contract
-
(9,820)
(9,820)
Total non - cash transactions
3,915
70,890
74,805
At 31. December 2022
315,645 155,978 471,623
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
114
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
CIAK Grupa d.d. and its subsidiaries 113
FOR THE YEAR ENDED 31 DECEMBER 2022
NOTE 28 – PROVISIONS
Warranty
At 1 January 2022
Non-current
911
Current
-
911
-
Increase/(decrease) in provisions
(854)
-
At 31 December 2022
57
At 31 December 2022
Non-current
57
Current
-
57
Group has contracts with its suppliers which include estimated amounts of returns. Group has
estimated that further provisions for warranty are unnecessary due to prior period costs not exceeding
contracted estimated amounts
NOTE 29 – TRADE AND OTHER PAYABLES
2022
2021
(in thousands of HRK)
Trade payables
389,187
288,742
Taxes, contributions and other duties payable
53,184
39,881
Salaries and other benefits to employees
15,446
11,398
Advances received
3,472
1,964
Accrued expenses
7,108
5,383
Payable for purchase of shares
1.583
3,382
Liability for unused holiday
2,876
3,795
Obligations based on profit sharing
129
-
Other payables
8,470
9,683
481,455
364,228
Within the trade payables, the amount of HRK 43,603 thousand (2021: HRK 18,696 thousand)
refers to the liability for supplier chain financing arrangement (reverse factoring).
The group has concluded agreements on reverse factoring for the management of its working
capital. According to the contracts, the Group transfers its payables to suppliers to factoring
companies, which pay the payables to suppliers on behalf of the Group, and the Group repays
the payables to factoring companies with an extended maturity of up to 180 days. Given that
the extended maturities do not exceed the market conditions common to the business sectors
in which the Group operates, the Group presents the aforementioned liabilities within
working capital.
At reporting dates the carrying amounts of trade and other payables approximate their fair
values due to the short-term nature of those liabilities.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
115
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 114
NOTE 29 – TRADE AND OTHER PAYABLES (CONTINUED)
The structure of trade and other payables with respect to currency denomination as at the reporting
dates was as follows:
2022
2021
(in thousands of HRK)
HRK
155,968
142,487
EUR
252,674
197,228
RSD
32,968
9,417
BAM
30,971
10,378
MKD
2,010
996
Other
6,864
3,722
481,455
364,228
NOTE 30 – RISK MANAGEMENT
Financial risk management
Categories of financial instruments are as follows:
2022
2021
(in thousands of HRK)
Financial assets
Long-term loans
4,809
7,031
Long-term deposits
2,595
8,576
Trade receivables
235,269
209,741
Other receivables
3,394
2,481
Cash and cash equivalents
105,954
75,546
Total financial assets
352,021
303,375
Financial liabilities at amortised cost
Lease liabilities
155,978
136,442
Loans and borrowings
316,279
275,584
Trade payables and other liabilities
409.820
309,154
Total financial liabilities
882,077
721,180
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
116
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 115
NOTE 30 – RISK MANAGEMENT (continued)
Fair value of financial instruments
The fair value of financial assets and financial liabilities is 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.
Financial instruments held to maturity in the ordinary course of business are recorded at the lower of
cost and net amount less the portion repaid. Fair value is determined as the amount at which a financial
instrument can be exchanged between willing and knowledgeable parties in an arm's-length
transaction, except in the event of forced sale or liquidation. The fair value of financial instruments is
the one quoted on the securities market or obtained using the discounted cash flow method.
As at the reporting dates, the carrying amounts of cash and cash equivalents, short-term deposits,
receivables, short-term liabilities, accrued expenses, short-term borrowings and other financial
instruments approximate their fair value due to the short-term nature of those assets and liabilities
and due to the fact that a majority of short term assets and liabilities are at variable interest rates.
As at the reporting dates, the carrying amounts of borrowings arising from bank and other loans
approximates their fair values as the majority of these borrowings bear variable interest rates or fixed
interest rate approximating current market interest rates.
Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the Management Board, which has
built an appropriate liquidity risk management framework to manage the Group’s short, medium and
long-term funding and liquidity requirements. The Group manages liquidity risk by monitoring the net
current asset position and by addressing any expected current liquidity deficits.
Liquidity risk analysis
The following tables detail the contractual maturity of the Group’s financial liabilities and financial
assets presented in the consolidated statement of financial position at each reporting period end. The
tables have been drawn up based on the undiscounted cash flows until maturity and include cash flows
from both interest and principal. Ultimate responsibility for liquidity risk management rests with the
Management Board which has built an appropriate liquidity risk management framework to manage
the short, medium and long-term funding and liquidity requirements. The Group manages liquidity
risk by monitoring the net current asset position and by addressing any working capital requirements.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
117
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 116
NOTE 30 – RISK MANAGEMENT (CONTINUED)
as at 31 December 2022
Net book
value
Contracted
cash flow
Up to one
year
1 - 5 years
over 5 years
(thousands of HRK)
Non-interest bearing liabilities:
Trade and interest payables
409,820
409,820
409,820
-
-
409,820
409,820
409,820
-
-
Interest bearing liabilities:
Loans and borrowings
316,279
326,451
151,929
154,044
20,478
Lease liabilities
155,978
163,129
45,892
91,198
26,039
472,257
489,580
197,821
245,242
46,517
882,077
899,400
607,641
245,242
46,517
as at 31 December 2021
Net book
value
Contracted
cash flow
Up to one
year
1 - 5 years
over 5
years
(thousands of HRK)
Non-interest bearing liabilities:
Trade and interest payables
364,593
364,593
364,593
-
-
364,593
364,593
364,593 - -
Interest bearing liabilities:
Loans and borrowings
275,585
288,097
78,205
178,123
31,769
Lease liabilities
136,442
143,467
33,203
79,219
31,045
412,027
431,564
111,408
257,342
62,814
776,620
796,157
476,001
257,342
62,814
Interest rate risk management
The Group is exposed to interest rate risk as it borrows funds at both fixed and variable interest rates.
Changes and projections of interest rates are monitored continuously as the majority of the Group’s
borrowings are at variable interest rates.
Interest rate sensitivity analysis
The sensitivity analysis below has been determined based on the exposure to interest rate changes at
the reporting date. For variable rate liabilities, the analysis is prepared by calculating the effect of a
reasonably possible increase in interest rates on variable rate debt on the expected contractual cash
flows of such debt compared to those calculated using the interest rates applicable at the current
reporting period end date. A 100 basis point increase/decrease is used when reporting interest rate
risk internally to key management personnel and represents the Management Board’s assessment of
the reasonably possible change in interest rates.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
118
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
CIAK Grupa d.d. and its subsidiaries 117
FOR THE YEAR ENDED 31 DECEMBER 2022
NOTE 30 – RISK MANAGEMENT (CONTINUED)
The estimated effect of the reasonably possible change in interest rates on the Group’s result before
tax for the reporting periods is as follows:
as at 31 December 2022
Contractual
cash flows
up to 1 year
from 1 to 5
years
over 5 years
(thousands of HRK)
At currently applicable interest rates
489,580
197,821
245,242
46,517
At currently applicable interest rates + 50 basis points
496,188
198,793
249,490
47,906
Effect of increase of interest rate by 50 basis points
(6,608)
(972)
(4,248)
(1,388)
as at 31 December 2021
Contractual
cash flows
up to 1 year
from 1 to 5
years
over 5 years
(thousands of HRK)
At currently applicable interest rates
431,564
111,408
257,341
62,813
At currently applicable interest rates + 50 basis points
434,774
111,599
259,575
63,600
Effect of increase of interest rate by 50 basis points
(3,210)
(191)
(2,234)
(787)
Currency risk management
The Group performs certain transactions in foreign currencies and is therefore exposed to risks of
changes in exchange rates. The carrying amounts of the Group’s foreign currency denominated
monetary assets and monetary liabilities at the reporting date are as follows.
Liabilities
Assets
2022.
2021.
2022.
2021.
(thousands of HRK)
(thousands of HRK)
EU (EUR)
588,974
551,004
55,812
38,964
Bosnia and Hercegovina (BAM)
69.972
48,463
36,770
29,888
Serbia (RSD)
32,968
9,417
43,475
31,810
North Macedonia (MKD)
2,010
996
6,251
1,775
Foreign currency sensitivity analysis
The Group is primarily exposed to currency risk arising from changes in the exchange rate of the kuna
against convertible mark (BAM) and the Serbian dinar (RSD) as it is operating on foreign markets (B&H
and Serbia) and, other than in euro, records most transactions with foreign customers in these
currencies. Loans and borrowings are partly denominated in EUR and partly denominated in Croatian
kuna, however, since the EUR was introduced as the official currency in Croatia as of 1 January 2023,
this risk has been eliminated.
The currency risk analysis is based on the official exchange rates for the currencies analysed above as
per the Croatian National Bank, which were as follows:
31.12.2022
31.12.2021
EUR
7.5345
7.517174
BAM
3.85233
3.84347
RSD
0.0654
0.0641
MKD
0.1244
0.1218
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
119
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
CIAK Grupa d.d. and its subsidiaries 118
FOR THE YEAR ENDED 31 DECEMBER 2022
NOTE 30 – RISK MANAGEMENT (CONTINUED)
The following table details the Group’s sensitivity to a 1% increase in Croatian kuna against the BAM
and RSD as the estimated reasonably possible increase in the exchange rate of the respective
currencies. The sensitivity analysis includes only outstanding monetary assets and monetary liabilities
in foreign currency and their translation at the end of the period based on the percentage change in
currency exchange rates. A negative number below indicates a decrease in profit where Croatian kuna
changes against the relevant currency for the percentage specified above. For an inversely
proportional change of Croatian kuna against the relevant currency, there would be an equal and
opposite impact on the profit.
RSD exposure
BAM exposure
2022
2021
2022
2021
(thousands of HRK)
(thousands of HRK)
Increase/ (decrease of net result
105
224
(332)
(186)
MKD exposure
2022
2021
(thousands of HRK)
Increase/ (decrease of net result
42
8
Market risk management
Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in
financial loss to the Group. The Group's exposure to credit risk is influenced mainly by the individual
characteristics of each customer. The demographics of the customer base, including the default risk of
the industry and country in which customers operate, has less of an influence on credit risk. The Group
has established a credit policy under which each new customer is analysed individually for
creditworthiness before standard payment and delivery terms and conditions are offered. The Group
establishes an allowance for impairment that represents its estimate of incurred losses in respect of
trade and other receivables and investments.
Total exposure to credit risk at the reporting date is as follows is set out in note 20 to the financial
statements. The Group does not have a significant credit exposure that is not covered by security
instruments, or not reflected in the estimates of indications of impairment as at the reporting dates.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
120
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 119
NOTE 31– BUSINESS COMBINATIONS
During 2022, the Group successfully completed several acquisitions. Overview of
acquisitions is listed below:
Company
Segment
Date of
acquisition
Ownership
Ciak dooel, Makedonija (before Euroguma
trade d.o.o.)
Accumulators and
oil
31.1.2022
100%
DBH d.o.o., Hrvatska
Truck program
28.2.2022
100%
Mika komerc , Srbija
Auto program
28.2.2022
100%
Fuerza d.o.o., Hrvatska
Auto program
31.3.2022
100%
D
uring IPO process, Group stated that one of the key goals is strengthening its position in the
regional markets and consolidating of still unconsolidated markets in the region.
Overview of acquisition price is as follows:
Company
Consideration
Amount
HRK)
('000
Ciak dooel, Makedonija (before Euroguma trade d.o.o.)
Cash
1,730
DBH d.o.o., Hrvatska
Cash
1,959
Mika komerc , Srbija
Cash
3,231
Fuerza d.o.o., Hrvatska
Cash
80
Total
7,000
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
121
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 120
NOTE 31– BUSINESS COMBINATIONS (continued)
Net assets of acquired companies
Fair value of assets and liabilities was as follows:
Note
Ciak dooel,
trade d.o.o.)
Macedonia
(before
Euroguma
DBH
d.o.o.,
Croatia
Mika
komerc
d.o.o.,
Serbia
Fuerza
d.o.o.,
Croatia
Total
14
17
- 8 - 9
15
77
167
70
119
433
(in thousands of HRK)
Intangible assets
Property, plant and equipment
Right of use assets
16
372
458
573
-
1,402
Deferred tax assets
-
-
12
-
12
Inventories
2,041
2,314
1,270
1,874
7,500
Trade and other receivables
3,027
2,686
69
1,089
6,871
Income tax receivable
6
12
-
-
18
Financial assets
29
-
2
-
31
Cash and cash equivalents
454
96
636
174
1,360
Loans
27
(3,216)
(2,032)
-
(30)
(5,278)
Lease liabilities
27
(372)
(458)
(573)
-
(1,402)
Income tax payable
-
(78)
(26)
(49)
(153)
Trade and other payables
(1,816)
(2,655)
(539)
(2,789)
(7,799)
Net identifiable assets acquired
604
518
1,493
397
3,011
Acquisition cost
1,730
1,959
3,231
80
7,000
Goodwill
1,126
1,441
1,738
-
4,305
Bargain purchase
-
-
-
317
317
Period form acquisition date till 31
December 2022
Revenue
5,456
8,277
6,518
2,338
22,589
Profit / (loss)
(254)
271
304
189
510
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
122
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 121
NOTE 31– BUSINESS COMBINATIONS (continued)
In the event that all acquisitions happened on 1. January 2022., consolidated revenues and profits of
the Group would amount to:
2022
Revenue up to the acquisition date
(thousands of
HRK)
Ciak dooel, Macedonia (before Euroguma trade d.o.o.)
701
DBH d.o.o., Croatia
1,333
Mika komerc , Serbia
1,108
Fuerza d.o.o., Croatia
2,203
Presented consolidated revenue
1,706,484
Total revenues had all business combinations occurred at 1 January 2022
1,711,829
2022
Profit/ (loss) up to the acquisition date
(thousands of
HRK)
Ciak dooel, Macedonia (before Euroguma trade d.o.o.)
69
DBH d.o.o., Croatia
(156)
Mika komerc , Serbia
(4)
Fuerza d.o.o., Croatia
99
Presented Group net profit
46,136
Profit had all business combinations occurred at 1 January 2022
46,144
Methods used in determining fair values of assets
Caption
Methods used
PPE
The fair value of plant and equipment is determined using the amortized
replacement cost method. Amortized replacement cost is the estimated
amount that reflects both the physical depreciation and the functional and
economic obsolescence of the asset being estimated.
Inventory
The fair value of inventories acquired in a business combination is based on the
estimated selling price in the ordinary course of business, less the estimated
cost of selling the inventory.
Current
current payables
Receivables and
Current receivables and payables were where recognised at nominal value
their short term nature.
reduced for impaired amount and are approx. equal to their fair values due to
Long term payables
Long-term liabilities are recognized at amortized cost and are approximately
initial recognition of acquired net assets at fair value.
equal to their fair value as they relate mainly to loans with approximately
market interest rates.
The increase in long-term acquisition liabilities is a result of the recognition of a
deferred tax liability as a result of temporary time differences arising on the
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
123
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 122
NOTE 32 – RELATED PARTYTRANSACTIONS
The Group is in a related party relationship with its majority shareholder Ivan Leko, who is the ultimate
owner of the Company and parties related to him or entities under his control or significant influence.
The Group also has a related party relationship with key management personnel and Supervisory Board
members, their close family members and entities controlled, jointly controlled by them and/or their
close family members, in accordance with the definitions contained in International Accounting
Standard 24 Related Party Disclosures (“IAS 24”).
Transactions between the Company and its subsidiaries are eliminated through consolidation and are
not presented in this note. The list of subsidiaries is disclosed in note 3 to the financial statements.
Transactions with the owner and his related parties and entities under his control or significant
influence:
Sales revenue
2022
2021
(thousands of HRK)
Majority shareholder and parties related to majority shareholder
1,532
911
Equity-accounted investees
798
689
2,330
1,600
Cost of goods sold and other operating expenses
2022.
2021.
(thousands of HRK)
Majority shareholder and parties related to majority shareholder
8,771
2,969
Equity-accounted investees
715
613
9,486
3,582
Trade and other receivables
2022
2021
(thousands of HRK)
Majority shareholder and parties related to majority shareholder
3,467
1,919
Equity-accounted investees
251
-
3,718
1,919
Trade and other payables
2022
2021
(thousands of HRK)
Majority shareholder and parties related to majority shareholder
28,151
14,701
Equity-accounted investees
10
-
28,161
14,701
Transactions with key management and Supervisory Board members and their related parties:
Key management renumeration
2022
2021
(thousands of HRK)
Salaries, severance payments, bonuses
17,394
8,788
17,394
8,788
Key management of the Group comprises the Management Board and executive directors and
consisted of 34 persons (2021: 21 persons).
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
124
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
CIAK Grupa d.d. and its subsidiaries 123
NOTE 33 – SUBSEQUENT EVENTS
Business combinations
After the balance sheet date, the realized acquisition in 2023 is a non-adjusting event, given that it has
an effect on operations and financial statements in 2023.
In February 2023, the Group finalized the acquisition of Potokar d.o.o., one of the companies in the
independent aftermarket segment (so-called "IAM") on the Slovenian market, with revenue exceeding
7 million euros at 18 locations spread throughout Slovenia with an assortment of over 40,000 items.
With this transaction, the Group continues to be one of the leading companies in the independent
aftermarket segment in the Adria region, with a strong presence in the distribution of automotive
spare parts program in Croatia, Montenegro, Serbia, Bosnia and Herzegovina, North Macedonia and
now Slovenia.
Change of functional currency
The Government of the Republic of Croatia adopted the Decision on the announcement of the
introduction of the euro as the official currency in the Republic of Croatia (published in "Official
Gazette" No. 85/22). With the aforementioned decision, the euro becomes the official monetary unit
and legal currency in the Republic of Croatia on 1 January 2023. The fixed conversion rate is set at HRK
7.53450 for one euro. The introduction of the euro as the official currency in the Republic of Croatia
represents a change in the functional currency that will be calculated prospectively and does not
represent an adjusting subsequent event.
ANNUAL REPORT FOR THE PERIOD UNTIL 31 DECEMBER, 2022
125
BILJEŠKE
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2022
Sustainable Mobility
www.ciak.hr
Annual Report 2022 – CIAK Grupa d.d. and its subsidiaries
CIAK Grupa d.d.
Savska Opatovina 36
10090 Zagreb
+385 1 34 63 521
+385 1 34 63 522
+385 1 34 63 523
+385 1 34 63 524
+385 1 34 63 516 (Fax)
ciak@ciak.hr
www.ciak.hr
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Annual Report 2022 – CIAK Grupa d.d. and its subsidiaries