Financial statements of AB S.A. for the financial year 2013/2014

Transcription

1 Financial statements of AB S.A. for the financial year 2013/2014 covering the period to AB S.A. BANK ACCOUNT: Kredyt Bank S.A I/o Wrocław, PL (PLN), Katowice: tel. ( ) , fax ( ) Warszawa: tel. ( ) , fax ( ) Page 1

2 TABLE OF CONTENTS: I) Introduction to the Financial Statements Company, Legal Form and Scope of Business Presentation and Transformation of the Financial Statements Accounting Principles (Policies) Methods of Asset and Liability Measurement and Financial Result Measurement Mean PLN/EUR Exchange Rates in the Period under Report Selected Financial Data Translated Into Euro Material Differences Between the Financial Data of the Presented Financial Statements and the Same Data Presented in accordance with the International Accounting Standards II) Balance Sheet as at 30 June III) Profit and Loss Account for the Period 1 July 2013 to 30 June IV) Statement of Changes in Equity V) Cash Flow Statement VI) Additional Notes and Explanations Explanatory Notes to the Balance Sheet Note 1a Intangible Assets Note 1b Changes in the Value of Intangible Assets (by Type) Note 1c Intangible Assets (Ownership Structure) Note 2a Tangible Fixed Assets Note 2b Changes in Fixed Assets (by Type) Note 2c Balance Sheet Fixed Assets (Ownership Structure) Note 3a Changes in Property (by Type) Note 3b Long-Term Financial Assets Note 3c Changes in Long-Term Financial Assets (by Type) Note 3d Shares in Subsidiaries Note 3e Shares in Subsidiaries Note 3f Securities, Interests and Other Long-Term Financial Assets Note 3g Securities, Interests and Other Long-Term Financial Assets (by Tradability) Note 4a Changes in Deferred Income Tax Assets Note 5a Inventories Note 6a Short-term Receivables Note 6b Short-term Receivables Related Entities Note 6c Changes in Revaluation Charges of Short-Term Receivables Note 6d Gross Short-Term Receivables (Currency Structure) Note 6e Trade Receivables (Gross) with Remaining Maturity as at the Balance Sheet Date Note 6f Overdue Trade Receivables (Gross) by Overdue Periods Note 7a Disputed and Overdue Receivables Note 8a Short-term Financial Assets Note 8b Granted Short-Term Loans (Currency Structure) Note 8c Cash and Cash Equivalents (Currency Structure) Note 9a Short-Term Prepayments Page 2

3 1.27. Note 10a Revaluation Charges Note 11a Share Capital (Structure) Note 13a Reserve Capital Note 14a Revaluation Reserve Note 15a Other Reserve Funds (by Intended Application) Note 16a Changes in Deferred Income Tax Provisions Note 16b Changes in Short-Term Provision for Pensions and Similar Benefits (by title) Note 16c Changes in Other Short-Term Provisions (by Title) Note 17a Short-Term Liabilities Note 17b Short-Term Liabilities (Currency Structure) Note 17c Short-Term Liabilities under Loans Note 18a Other Prepayments and Accruals Note 19a Book Value per Share Explanatory Notes to the Profit and Loss Account Note 20a Net Revenues Sale of Products (by Types of Activity) Note 20b Net revenues Sale of Products (by Territory) Note 21a Net Revenues Sale of Goods and Materials (by Types of Activity) Note 21b Net Revenues Sale of Products, Goods and Materials (by Territory) Note 21c Reporting by Segments Note 22a Costs by Type Note 23a Other Operating Revenues Note 24a Other Operating Expenses Note 25a Income Dividends and Share in Profits Note 25b Interest Income Note 25c Other Financial Income Note 26a Interest Expense Note 26b Other Financial Expense Note 27a Current Income Tax Note 27b Deferred Income Tax Stated in the Profit and Loss Account Note 28a Profit per Share Note 28b Profit Distribution Explanatory Notes to the Cash Flow Statement Information on Financial Instruments Classification of Financial Instruments Details of Financial Instruments by Category Hedging instruments EUR Hedging instruments USD Details of Off-Balance Sheet Items, Including Contingent Liabilities Liabilities Towards the State Budget or Local Budget for Acquisition of Title to Buildings and Structures Information on Revenues, Expenses and Results of Discontinued Activities in the Financial Year or Activities to Be Discontinued in the Following Year Manufacture Costs of Fixed Assets under Construction, Fixed Assets for Internal Needs Page 3

4 9. Investment Outlays Transactions with Related Entities Concerning Transfer of Rights and Liabilities Information on Non-Consolidated Joint Ventures Information on Average Headcount by Professional Group Total Amount of Remuneration and Bonus (in Cash and in Kind), Paid or Payable, Separately for Persons Managing and Supervising the Issuer in the Issuer s Business Information on Remuneration for the Statutory Auditor or an Entity Entitled to Audit Financial Statements, Paid or Payable for the Financial Year Information on Outstanding Advances, Loans, Guarantees, Sureties and other Contracts in Favour of the Company by Subsidiary, Co-Controlled and Associated Entities Material Events Related to Previous Years Disclosed in the Financial Statements for the Current Period Information on Material Events Occurring After the Balance Sheet Date and not Disclosed in the Financial Statements Relations Between the Company and its Legal Predecessor and Information on the method and extent of acquisition of Assets and Liabilities Adjustment of the Financial Statements and Comparable Financial Data for Inflation Differences between Previously Published Financial Statements and the Data Disclosed in These Financial Statements and Comparable Financial Data Changes to the Applied Accounting Rules (Policies) and Presentation Method of the Financial Statements in Relation to the Preceding Financial Year(s), their Reasons, Titles and Impact of their Financial Effects on the Economic and Financial Condition, Liquidity, Financial Results and Profitability Adjustment of Manifest Errors Page 4

5 I) INTRODUCTION TO THE FINANCIAL STATEMENTS 1. COMPANY, LEGAL FORM AND SCOPE OF BUSINESS Details of the entity: - Business name: AB S.A. - Address of the registered office: Wrocław, ul. Kościerzyńska 32 - Statistical number: Tax identification number (NIP): Scope of business (as per the Company s By-Laws): - wholesale and retail sale of computers, telecommunications and multimedia equipment on its own account, on a commission basis, as an agency or commercial agent, - import and export of computers, telecommunications, multimedia and electronic equipment, - development of software products and trading in such products, - installation of IT networks, - services with respect to the installation and repair of computer, telecommunications, multimedia and electronic equipment, - Internet services, - maintenance services, - IT consulting, - implementation of computer systems, - services related to promotion, advertising and marketing, - activities related to training, publication and printing services, - operation of bonded warehouses, - forwarding and transportation services, - rental of premises. Registration authority: District Court for Wrocław-Fabryczna, 6th Commercial Division of the National Court Register. The Company was entered into the Register on under the number KRS As at , the Company s Management Board comprised of the following persons: Page 5

6 - Andrzej Przybyło - President of the Management Board, - Zbigniew Mądry - Member of the Management Board - Grzegorz Ochędzan - Member of the Management Board - Krzysztof Kucharski - Member of the Management Board As at , the Company s Supervisory Board comprised of the following persons: - Iwona Przybyło - Chairwoman of the Supervisory Board - Katarzyna Jażdrzyk - Member of the Supervisory Board - Andrzej Bator - Member of the Supervisory Board - Radosław Kiełbasiński - Member of the Supervisory Board - Jacek Łapiński - Member of the Supervisory Board - Jan Łapiński - Member of the Supervisory Board Duration of the Company: unlimited. 2. PRESENTATION AND TRANSFORMATION OF THE FINANCIAL STATEMENTS The non-consolidated Financial Statements present financial data for the reporting period 1 July 2013 to 30 June 2014 and comparable data covering the period 1 July 2012 to 30 June AB S.A. does not comprise of any internal organisational sub-units that would prepare their individual financial statements. The Company is the parent company for Alsen Sp. z o.o. in Chorzów, Alsen Marketing Sp. z o.o. in Chorzów, B2B IT Sp. z o.o. in Wrocław, Rekman Sp. z o.o. in Wrocław, Optimus Sp. z o.o. in Wrocław and AT Computers Holding a.s. with its registered office in Ostrava, Czech Republic, which holds 100% shares in the following entities: - AT Computers a.s. with its registered office in Ostrava, Czech Republic, - AT Compus s.r.o. with its registered office in Ostrava, Czech Republic, - AT Computer s.r.o. with its registered office in Žilina, Slovakia, - Comfor Stores a.s. with its registered office in Brno, Czech Republic. - icomfor s.r.o with its registered office in Brno, Czech Republic. In the period under report, AB S.A. was not party to any mergers. The Financial Statements have not been transformed and no adjustments have been introduced as a result of the auditor's reservations. Page 6

7 The Financial Statements have been prepared with the assumption of going concern in the foreseeable future. There are no circumstances that would pose a threat to continued operations. The Financial Statements include information on all material contracts insofar as is necessary to assess the Company s economic and financial condition and performance. 3. ACCOUNTING PRINCIPLES (POLICIES) The accounting principles applied in the preparation of the financial statements as at 30 June 2014 are compliant with the Accounting Act of 29 September 1994 and the resultant additional regulations as well as the Regulation of the Minister of Finance of on the scope of financial information disclosed in financial statements and consolidated financial statements, required in prospectuses published by issuers registered in the Republic of Poland and subject to Polish accounting rules. Account entries are made in accordance with the historical cost method. The Company did not make any adjustments that would reflect the impact of inflation on Balance Sheet and Profit and Loss items. The Company prepares its Profit and Loss Account by function. The Cash Flow Statement is prepared using the indirect method Methods of Asset and Liability Measurement and Financial Result Measurement Intangible Assets Intangible Assets cover computer software and Goodwill resulting an in-kind contribution of a part of a business, and are amortised over 2 to 5 years. They are valued at purchase prices or manufacturing costs reduced by accumulated amortisation and are annually tested for impairment. Intangible Assets are amortised using the linear method. Tangible Fixed Assets Tangible Fixed Assets are valued at purchase price or at the costs incurred in the course of their manufacturing, extension or modernisation. The initial value of Tangible Fixed Assets is reduced to net value by accumulated depreciation. Tangible Fixed Assets are depreciated using the linear method. The annual depreciation rates for the individual groups of assets are as follows: Buildings and structures 2.5% - 4.0% Plant and equipment 7.0% % Page 7

8 Motor vehicles 17.0% % Other Fixed Assets 14.0% % Tangible Fixed Assets with the original value under PLN are expensed off when taken over for use. At least on each balance sheet date, the entity determines whether impairment write-downs are required. Fixed Assets under construction The value of Fixed Assets under construction is disclosed at the value of outlays incurred for purchase or manufacture. The value of Fixed Assets under construction is adjusted for FX differences and interest on the obligations incurred to finance the purchase or construction of Fixed Assets for the investment period. When Fixed Assets under construction are commissioned, FX losses (gains) and interest on the obligations are charged to financial expenses (income). Inventories Inventories are valued at the lower of: purchase price or net realisable price. The purchase price covers all costs incurred to deliver the inventories to the Company warehouse. Outgoing stocks are valued at purchase price using the weighted average method. The net sale price is the realisable price as at the balance sheet date net of VAT. Receivables, payables and loans Receivables and payables (with the exception of loans) in PLN are disclosed in the payable amounts. Foreign currency denominated receivables and payables are recognised at the time they arise at the mean exchange rate published by the President of the NBP for the preceding day for the relevant foreign currency. Loan receivables and payables are recognised using the amortised cost method. FX gains or losses originating on the payment date due to differences between the exchange rate as at the payment date and the exchange rate at the time when a receivable or payable was created, are recognised as, respectively, financial income or expenses. Receivables which remain unsettled by the end of the reporting period are translated at the mean exchange rate for the relevant currency published by the National Bank of Poland on that date. Payables which remain unsettled by the end of the reporting period are translated at the mean exchange rate for the relevant currency published by the National Bank of Poland on that date. Unrealised FX losses concerning settlements are recognised as financial expenses while unrealised FX gains are recognised as financial income. Page 8

9 Receivables are subject to revaluation write-downs which are applied to all receivables whose collection is unlikely. Cash Domestic cash on hand and in bank accounts is recognised at nominal value. Foreign currency cash is recognised at nominal value translated into PLN. As at the end of each reporting period, cash in foreign currencies is translated at the mean FX rate of the National Bank of Poland prevailing at the balance sheet date. FX gains and losses resulting the translation of foreign currency cash into PLN as at the end of the reporting period are recognised as financial income or expenses respectively. Prepayments Prepayments are recognised in the amount of costs payable in the future reporting periods. Such costs are recognised in proportion to the time elapsed and the recognition method depends on the nature of the costs. Prepayments are recognised at nominal value. Deferred income tax and deferred income tax provision In connection with temporary differences between the book value of assets and liabilities and their tax value deductible in the future, the Company establishes a deferred income tax provision and asset. The deferred income tax asset is established in an amount that is expected to be deducted income tax in the future in conjunction with negative temporary differences that will lead to a decrease in the income tax base, estimated in accordance with the prudence principle. The deferred income tax asset is reduced by the deferred income tax provision, in compliance with the Accounting Act. The deferred income tax provision is established in an amount of the income tax payable in the future in connection with the existence of positive temporary differences (increasing the tax base). Equity Share capital is recognised at nominal value. As at the balance sheet date, the share capital amounts to PLN and is composed of shares with nominal value of PLN 1.00 each. Reserve capital is recognised as the surplus of the share sale price over the nominal value of shares and at the nominal value of retained profit. Page 9

10 Accruals Accruals are recognised as costs that have not been incurred but that are attributable to a reporting period. They are recognised at nominal value. Deferred income Deferred income is recognised at nominal value. It pertains to specific payments received contracting parties for services that will be rendered by the entity in the next financial year. Special funds Special funds include Company Social Benefits Fund, established in compliance with the Act on Company Social Benefits Funds. Balance sheet recognition and valuation of financial instruments All financial assets, including investments in financial instruments, are classified into one of the following four categories on the purchase date: - held for trading, - held to maturity, - loans granted and company receivables, - available for sale. Financial assets held for trading include financial assets that have been purchased or developed in order to obtain gains as a result of short-term (up to three months) price fluctuations, or financial assets which, irrespective of the reason for which they way purchased, constitute an asset group that was recently used to obtain gains as a result of price fluctuations. Financial assets held to maturity are financial assets with defined or definable maturity dates that the Company intends and is able to hold to maturity, with the exception of loans granted and company receivables. All loans and receivables that meet the definition of financial instruments provided in art of the Accounting Act, generated as a result of provision of cash, goods or services to counterparties, that the Company did not classify as available for sale in short term, are classified as loans and company receivables. Financial assets available for sale include all financial assets other than: loans granted and company receivables, financial assets held to maturity and financial assets held for trading. Assets available for sale include in particular shares in other entities that are not subsidiary entities that the Company does not intend to sell in short term. Liabilities are classified to one of the following two categories: derivative instruments with fair value under zero and obligations to deliver borrowed financial instruments in case of short sale which are classified as financial liabilities available for trading; all other financial liabilities are classified as other financial liabilities. Page 10

11 As at the contract date, financial assets are recognised at purchase cost which is the fair value of incurred expenses or of other delivered assets, while financial liabilities are recognised at fair value of the obtained amount or value of the acquired assets. Assets held to maturity, loans granted and company receivables as well as other financial liabilities not classified by the Company as available for trading, are valued at the amortised cost at the effective interest rate. Short-term (trade) receivables and payables, for which the discount effect is not material, are valued at the amount receivable/payable. For short-term receivables, impairment is considered, which means that the amount of receivables is adjusted to take into account the probability of payment by applying revaluation write-downs. Financial assets and liabilities held for trading and financial assets available for sale are recognised at fair value. Changes in the fair value of financial instruments held for trading which are not part of hedging positions are recognised as financial income or expenses in the Profit and Loss Account as they occur. With respect to financial assets available for sale, changes to the fair value are recognised in the Profit and Loss Account as financial income (expenses). As of 1 July 2011, the Company started to use hedging accounting, in compliance with the applicable Polish regulations. Detailed information is provided in Note Revenues and expenses The Company recognises as income and profit those economic benefits that occur during the reporting period, with a reliably determined value, which manifest themselves as increased assets or reduced liabilities that will result in an increase of equity or reduction of equity shortage by other means than by additional contributions of shareholders. The Company recognises as costs and losses a probable reduction of economic benefits in the reporting period, with a reliably determined value, which manifests itself as reduced assets or increased liabilities and provisions that will result in a decrease of equity or an increase of shortage of equity by other means than by withdrawal of funds by shareholders. Revenues sales of goods result sale transactions subject to discounts and rebates. Costs of goods sold include the purchase price, subject to discounts and rebates. Overheads include operating costs of the Company, in particular: costs of management and costs of departments operating for the Company. Other operating revenues and costs include revenues and costs not related directly to the business of the Company, primarily the result on the disposal of tangible fixed assets and intangible assets, donations, established provisions, revaluation effects of non-financial assets. Financial income and expenses cover primarily interest attributable to the period, gains and losses on disposal of investments and FX differences. In compliance with memorandum accounting, revenues and expenses concerning a given period are recognised in the Profit and Loss Account of the reporting period, irrespective of the time they are collected or paid. Page 11

12 3.2. Mean PLN/EUR Exchange Rates in the Period under Report Period Mean rate in the period (1) Minimum rate in the period (2) Maximum rate in the period (3) Exchange rate as at the last day of the period (1) Mean exchange rate as at the last day of each month in the period (2) Lowest exchange rate in the period FX rate tables number: 152/A/NBP/2012, 110/A/NBP/2014 (3) Highest exchange rate in the period FX rate tables number: 120/A/NBP/2013, 127/A/NBP/ Selected Financial Data Translated Into Euro SELECTED FINANCIAL DATA EUR 000 I. Net revenues the sale of products, goods and materials II. Profit / (loss) on operations III. Gross profit (loss) IV. Net profit (loss) V. Net cash flows operating activities VI. Net cash flows investing activities VII. Net cash flows financing activities VIII. Total net cash flows IX. Total assets X. Liabilities and provisions for liabilities XI. Long-term liabilities XII. Short-term liabilities XIII. Equity XIV. Share capital XV. Number of shares (units) XVI. Profit / (loss) per ordinary share (PLN/EUR) XVII. Diluted profit / (loss) per ordinary share (PLN/EUR) XVIII. Book value per share (PLN/EUR) XIX. Diluted book value per share (PLN/EUR) XX. Declared or distributed dividend per share (PLN/EUR) - - The balance sheet figures as at the last day of the period of June 2014 were translated at the EUR rate announced by NBP as at that day, i.e. PLN/EUR Page 12

13 The balance sheet figures as at the last day of the period of June 2013 were translated at the EUR rate announced by NBP as at that day, i.e. PLN/EUR The figures in the Profit and Loss Account for July 2012 to 30 June 2013 were translated at the mean EUR rate, calculated as the arithmetic mean of the exchange rates prevailing as at the last day of each month in the period PLN/EUR The figures in the Profit and Loss Account for July 2013 to 30 June 2014 were translated at the mean EUR rate, calculated as the arithmetic mean of the exchange rates prevailing as at the last day of each month in the period PLN The figures in the Cash Flow Statement for July 2012 to 30 June 2013 were translated at the mean EUR rate, calculated as the arithmetic mean of the exchange rates prevailing as at the last day of each month in the period PLN/EUR The figures in the Cash Flow Statement for July 2013 to 30 June 2014 were translated at the mean EUR rate, calculated as the arithmetic mean of the exchange rates prevailing as at the last day of each month in the period PLN/EUR Material Differences Between the Financial Data of the Presented Financial Statements and the Same Data Presented in accordance with the International Accounting Standards The Company applies accounting rules and principles compliant with the Accounting Act of 29 September 1994 (Journal of Laws of 2013, item 330). In the Management Board's opinion, the differences in amounts between the financial statements for the period of made in compliance with IFRS and PAS are immaterial at both the unit and summary levels and therefore the Company does not present the differences. When preparing these Statements, the Management Board selected such standards and interpretations as would have been most probably applied in making the first financial statements in compliance with IFRS. It should also be noted that certain IFRS require different scope of disclosure and presentation of financial data than the Polish Accounting Standards. As of 1 July 2011, the Company implemented hedge accounting to protect against changes in cash flows connected with FX exchange rates. In line with the accounting principles adopted, the results of changes in the valuation of hedging instruments insofar as they function as effective collateral are charged to revaluation reserve and then are posted under revenues or costs of financial activity. Page 13

14 II) BALANCE SHEET AS AT 30 JUNE 2014 BALANCE SHEET ASSETS Notes I. Fixed assets Intangible assets, of which: Goodwill 2. Tangible fixed assets Long-term receivables 3.1. From related entities 3.2. From other entities 4. Long-term investments Real estate Intangible assets 4.3. Long-term financial assets a) in related entities, of which: shares shares in subsidiaries measured using the equity method - loans granted b) in other entities loans granted Other long-term investments 5. Long-term prepayments Deferred income tax asset Other prepayments and accrued income II. Working assets Inventories Short-term receivables 6, From related entities From other entities Short-term investments Short-term financial assets a) in related entities b) in other entities c) cash and cash equivalents Other short-term investments 4. Short-term prepayments Total assets Page 14

15 BALANCE SHEET Notes LIABILITIES I. Equity Share capital Called up share capital not paid (negative value) 3. Treasury shares (negative value) 4. Reserve capital Revaluation reserve Other reserve funds Retained profit (accumulated loss) 8. Net profit (loss) Net profit write-offs during the financial year (negative value) II. Liabilities and provisions for liabilities Provisions for liabilities Deferred income tax provision 1.2. Pension and similar benefits provisions a) long-term b) short-term Other provisions a) long-term b) short-term Long-term liabilities 2.1. Towards related entities 2.2. Towards other entities 3. Short-term liabilities Towards related entities Towards other entities Special funds Accruals Negative goodwill 4.2. Other accruals and deferred income a) long-term b) short-term Total liabilities Book value Number of shares (units) Book value per share (PLN) Diluted number of shares (units) Diluted book value per share (PLN) Page 15

16 OFF-BALANCE SHEET ITEMS 1. Contingent receivables 1.1. From related entities as - guarantees and sureties received Note 1.2. From other entities as - guarantees and sureties received 2. Contingent liabilities Towards related entities as - guarantees and sureties issued 2.2. Towards other entities as guarantees and sureties issued Other (due to) promissory notes issued - factoring Total off-balance sheet items III) PROFIT AND LOSS ACCOUNT FOR THE PERIOD FROM 1 JULY 2013 TO 30 JUNE 2014 PROFIT AND LOSS ACCOUNT I. Net revenues the sale of products, goods and materials, of which: Notes to to related entities Net revenues the sale of products Net revenues the sale of goods and materials II. Costs of sold products, goods, materials, of which: Manufacture costs of sold products Goods and materials sold III. Gross profit (loss) on sale IV. Costs of sale V. Overheads VI. Profit / (loss) on sale Page 16

17 VII. Other operating revenues Profit on disposal of non-financial fixed assets 2. Subsidies 3. Other operating revenues VIII. Other operating expenses Loss on sale of non-financial fixed assets Revaluation of non-financial assets Other operating expenses IX. Profit / (loss) on operations X. Financial income Dividend and profit distributions, of which: related entities Interest, of which: related entities Profit on disposal of investments 4. Revaluation of investments 5. Other XI. Financial expenses Interest, of which: due to related entities 2. Loss on disposal of investments 3. Revaluation of investments 4. Other XII. Profit / (loss) on business operations XIII. Net extraordinary items 1. Extraordinary profit 2. Extraordinary loss XIV. Gross profit (loss) XV. Income tax a) current part b) deferred part XVI. Other obligatory profit decrease (loss increase) XVII. Share in net profit/loss of subsidiary entities consolidated using the equity method XVIII. Net profit (loss) Net profit (loss) annualised Weighted average number of ordinary shares (units) Profit /(loss) per ordinary share (PLN) Diluted weighted average number of ordinary shares (units) Diluted profit /(loss) per ordinary share (PLN) Page 17

18 IV) STATEMENT OF CHANGES IN EQUITY STATEMENT OF CHANGES IN EQUITY I. Equity at the beginning of the period (OB) a) changes in adopted accounting rules (policy) b) adjustments of manifest errors I.a. Equity at the beginning of the period (OB), after reconciliation to comparable data Share capital at the beginning of the period Changes in share capital a) increases (due to) - share issues b) decreases (due to) - redemption of shares 1.2. Share capital at the end of the period Called-up share capital not paid at the beginning of the period (OB) 2.1. Changes in called-up share capital not paid a) increases (due to) b) decreases (due to) 2.2. Called-up share capital not paid at the end of the period 3. Treasury shares at the beginning of the period 3.1. Changes in treasury shares a) increases (due to) - purchase of treasury shares - decreases (due to) 3.2. Treasury shares at the end of the period 4. Reserve capital at the beginning of the period Changes in reserve capital a) increases (due to) - share issue above par value - profit distribution (statutory) - profit distribution (in excess of the minimum statutory value) b) decreases (due to) - costs of share issue 4.2. Reserve capital at the end of the period Revaluation reserve at the beginning of the period Changes in revaluation reserve a) increases (due to) hedging accounting b) decreases (due to) hedging accounting Page 18

19 5.2. Revaluation reserve at the end of the period Other reserve funds at the beginning of the period Changes in other reserve funds a) increases (due to) retained profit distribution b) decreases (due to) share redemption 6.2. Other reserve funds at the end of the period Retained profit (accumulated loss) at the beginning of the period Retained profit at the beginning of the period a) changes in adopted accounting rules (policy) b) adjustments of manifest errors 7.2. Retained profit at the beginning of the period a) increases (due to) - retained profit distribution b) decreases (due to) increase of reserve funds dividend distribution 7.3. Retained profit at the end of the period 7.4. Accumulated loss at the beginning of the period - changes in adopted accounting rules (policy) - adjustments of manifest errors 7.5. Accumulated loss at the beginning of the period after reconciliation to comparable data a) increases (due to) - accumulated loss brought forward for covering b) decreases (due to) 7.6. Accumulated loss at the end of the period 7.7. Retained profit (accumulated loss) at the end of the period 8. Net result a) net profit b) net loss c) profit write-offs II. Equity at the end of the period (CB) III. Equity including proposed profit distribution (loss coverage) Page 19

20 V) CASH FLOW STATEMENT CASH FLOW STATEMENT A. Cash flows operating activities (indirect method) I. Net profit (loss) II. Total adjustments Share in net profit (loss) of subsidiary companies Depreciation / amortisation FX (gains)/losses Interest and profit distributions (dividend) (Profit)/loss on investments Change in provisions Change in inventories Change in receivables Change in short-term liabilities, except loans Change in accruals and prepayments Other adjustments III. Net cash flows operating activities (I+/-II) indirect method B. Cash flows investing activities I. Inflows Disposal of intangible assets and of tangible fixed assets Disposal of investments in properties and intangible assets 3. From financial assets, of which: a) in related entities disposal of financial assets - dividend and profit distributions repayment of loans granted interest - other inflows financial assets b) in other entities disposal of financial assets - dividend and profit distributions - repayment of loans granted interest - other inflows financial assets 4. Other investment inflows II. Outflows Purchase of intangible assets and of tangible fixed assets Investments in properties and intangible assets Page 20

21 3. In financial assets, of which: a) in related entities purchase of financial assets loans granted b) in other entities purchase of financial assets - loans granted Other investment outflows III. Net cash flows investing activities (I-II) C. Cash flows financing activities I. Inflows 1. Net inflows issues of shares and other equity instruments and additional contributions to capital 2. Loans and borrowings 3. Issue of debt securities 4. Other financial inflows II. Outflows Purchase of treasury shares 2. Dividend and other distributions to shareholders 3. Other profit distributions 4. Repayment of loans and borrowings Redemption of debt securities 6. Other financial liabilities 7. Payments under finance lease 8. Interest Other financial outflows III. Net cash flows financing activities (I-II) D. Total net cash flows (A.III+/-B.III+/-C.III) E. Balance-sheet change in cash, including: change in cash due to FX differences F. Cash at the beginning of the period G. Cash at the end of the period (F+/-D), including: with restricted availability 375 Page 21

22 VI) ADDITIONAL NOTES AND EXPLANATIONS 1. EXPLANATORY NOTES TO THE BALANCE SHEET 1.1. Note 1a Intangible Assets INTANGIBLE ASSETS a) development costs b) goodwill c) acquired concessions, patents, licences and similar assets, of which: computer software d) other intangible assets e) advances for intangible assets Total intangible assets Page 22

23 1.2. Note 1b Changes in the Value of Intangible Assets (by Type) CHANGES IN THE VALUE OF INTANGIBLE ASSETS (BY TYPE) AS AT Development costs a b c d e Goodwill Concessions, patents, licences and similar assets, of which: computer software Other intangible assets Advances for intangible assets Total intangible assets a) gross intangible assets at the beginning of the period b) increases (due to) - purchase of software c) decreases (due to) liquidation of software - transfer to software d) gross intangible assets at the end of the period e) accumulated amortisation at the beginning of the period f) amortisation for the period (due to) increase decrease g) accumulated amortisation at the end of the period h) impairment write-offs at the beginning of the period - increases - decreases i) impairment write-offs at the end of the period j) net value of intangible assets at the end of the period BANK ACCOUNT: Kredyt Bank S.A I/o Wrocław, PL (PLN), Katowice: tel. ( ) , fax ( ) Warszawa: tel. ( ) , fax ( ) Page 23

24 1.3. Note 1c Intangible Assets (Ownership Structure) INTANGIBLE ASSETS (OWNERSHIP STRUCTURE) a) owned by the Company b) used pursuant to a rental, lease or similar contract, of which: Total intangible assets Note 2a Tangible Fixed Assets TANGIBLE FIXED ASSETS a) fixed assets, of which: land (including perpetual usufruct right) buildings, premises and civil engineering facilities plant and equipment motor vehicles other fixed assets b) fixed assets under construction advances for fixed assets under construction Total tangible fixed assets BANK ACCOUNT: Kredyt Bank S.A I/o Wrocław, PL (PLN), Katowice: tel. ( ) , fax ( ) Warszawa: tel. ( ) , fax ( ) Page 24

25 1.5. Note 2b Changes in Fixed Assets (by Type) CHANGES IN FIXED ASSETS (BY TYPE) - land (including perpetual usufruct right) - buildings, premises and civil engineering facilities - plant and equipment - motor vehicles - other fixed assets - Total fixed assets a) gross fixed assets at the beginning of the period b) increases (due to) purchase accounting for investments c) decreases (due to) sale liquidation d) gross fixed assets at the end of the period e) accumulated depreciation at the beginning of the period f) depreciation for the period (due to) increases decreases g) accumulated depreciation at the end of the period h) impairment write-offs at the beginning of the period - increases - decreases i) impairment write-offs at the end of the period j) net fixed assets at the end of the period BANK ACCOUNT: Kredyt Bank S.A I/o Wrocław, PL (PLN), Katowice: tel. ( ) , fax ( ) Warszawa: tel. ( ) , fax ( ) Page 25

26 1.6. Note 2c Balance Sheet Fixed Assets (Ownership Structure) BALANCE SHEET FIXED ASSETS (OWNERSHIP STRUCTURE) a) owned by the Company b) used pursuant to a rental, lease or similar contract, of which: - vehicle leasing Total balance sheet fixed assets Note 3a Changes in Property (by Type) CHANGES INPROPERTY (BY TYPE) a) beginning of the period: b) increases (due to) - purchase of land c) decreases (due to) - d) end of the period: Note 3b Long-Term Financial Assets LONG-TERM FINANCIAL ASSETS a) in subsidiary entities shares debt securities - other securities (by type) - loans granted other long-term financial assets (by type) b) in other entities loans granted Total long-term financial assets The Company holds shares in its subsidiaries, i.e. Alsen Sp. z o.o. with its registered office in Chorzów, Alsen Marketing Sp. z o.o. with its registered office in Chorzów, B2B Sp. z o.o. with its registered office in Wrocław, Rekman Sp. z o.o. in Wrocław, Optimus Sp. z o.o. in Wrocław and AT Computers Holding a.s. with its registered office in Ostrava. AT Computers Holding a.s holds 100% shares in the following entities: AT Computers a.s. with its registered office in Žilina, Slovakia, AT Compus s.r.o. with its registered office in Ostrava, Czech Republic, AT Computer s.r.o. with its registered office in Ostrava, Czech Republic, Comfor BANK ACCOUNT: Kredyt Bank S.A I/o Wrocław, PL (PLN), Katowice: tel. ( ) , fax ( ) Warszawa: tel. ( ) , fax ( ) Page 26

27 Stores a.s. with its registered office in Brno, Czech Republic and icomfor s.r.o. with its registered office in Brno, Czech Republic Note 3c Changes in Long-Term Financial Assets (by Type) CHANGES IN LONG-TERM FINANCIAL ASSETS (BY TYPE) a) beginning of the period: shares loans granted b) increases (due to) shares loans granted c) decreases (due to) sale of shares - revaluation charge - loan decrease d) end of the period: shares loans granted Page 27

28 1.10. Note 3d Shares in Subsidiaries SHARES IN SUBSIDIARIES AS AT N o. a b c d e f g h i j k l Name and legal form Registered office Scope of business Relationship (subsidiary, cocontrolled, associated entity, with details of direct and indirect relationship) Applied consolidation method / valuation using equity method or information that the entity is not consolidated / valued using equity method Date when control / cocontrol was assumed / major impact was acquired Value of shares at purchase price Adjustments to value (total) Book value of shares Percentage of share capital held Share in overall number of votes at GM Basis of control / co-control / major impact other than specified in j) or k) 1 Alsen Sp. z o.o. Chorzów marketing services, trade subsidiary full AT Computers Holding a.s. Ostrava, Czech Republic marketing services, trade subsidiary full Alsen Marketing Sp. z o.o. Chorzów marketing services, trade subsidiary full B2B IT Sp. z o.o. Wrocław logistics services subsidiary full Optimus Sp. z o.o. Wrocław marketing services, trade subsidiary full Rekman Sp. z o.o. Wrocław trade subsidiary full BANK ACCOUNT: Kredyt Bank S.A I/o Wrocław, PL (PLN), Katowice: tel. ( ) , fax ( ) Warszawa: tel. ( ) , fax ( ) Page 28

29 1.11. Note 3e Shares in Subsidiaries SHARES IN SUBSIDIARIES AS AT No. a m n o p r s t Name of entity 1 Alsen Sp. z o.o. 2 AT Comput ers Holding a.s. 3 Alsen Marketin g Sp. z o.o. 4 B2B IT Sp. z o.o. 5 Optimus Sp. z o.o. 6 Rekman Sp. z o.o. - Share capita l Equity of the unit, including: - Called up share capital not paid (negative value) - Reser ve capita l - Other equity, of which: - Retain ed profit (accum ulated loss) Net profit (loss) Liabilities and liability provisions, of which: Long - term liabil ities - Shortterm liabilities Receivables, of which: - Longterm receivable s - Short-term receivables Total assets Sale revenues Unpaid shares in entity Dividend s received or due the entity for the last financial year The figures presented are taken the Financial Statements published on for the financial year starting and ending on and are compliant with IFRS requirements. Page 29

30 1.12. Note 3f Securities, Interests and Other Long-Term Financial Assets SECURITIES, INTERESTS AND OTHER LONG-TERM FINANCIAL ASSETS (CURRENCY STRUCTURE) Unit Currency a) in PLN in '000 PLN b) in foreign currencies (by currency and translated into PLN) in '000 b1. in currency CZK translated into other currencies in in '000 PLN Total securities, interests and other long-term financial assets in '000 PLN Note 3g Securities, Interests and Other Long-Term Financial Assets (by Tradability) SECURITIES, INTERESTS AND OTHER LONG-TERM FINANCIAL ASSETS (BY TRADABILITY) A. With unlimited tradability, listed (book value) B. With limited tradability (book value) a. shares (book value): adjustments to value (for the period) - value at the beginning of the period value at purchase price Total value at purchase price Total value at the beginning of the period Total adjustments to value (for the period) Total book value Note 4a Changes in Deferred Income Tax Assets CHANGES IN DEFERRED INCOME TAX ASSETS PLN ' Deferred income tax assets at the beginning of the period, of which: a) recognised in profit and loss account b) charged to equity c) recognised in goodwill or negative goodwill 2. Increases BANK ACCOUNT: Kredyt Bank S.A I/o Wrocław, PL (PLN), Katowice: tel. ( ) , fax ( ) Warszawa: tel. ( ) , fax ( ) Page 30

31 a) recognised in profit and loss account for the period in connection with temporary negative differences (due to) - temporary differences, of which: > provisions for market charges > provisions for other costs > tax cost for other periods > overheads on salaries and salaries disbursed in the subsequent period balance-sheet valuation of settlements 126 b) charged to equity Decreases a) recognised in profit and loss account for the period in connection with temporary negative differences (due to): - Reversal of temporary differences, of which: > provisions for other costs > tax cost for other periods 26 - > salaries and overheads on salaries previous periods > provisions for market charges > balance-sheet valuation of settlements 126 b) charged to equity Deferred income tax asset at the end of the period, of which: a) recognised in profit and loss account balance-sheet valuation of settlements provisions for market charges overheads on salaries and salaries disbursed in the subsequent period tax cost for other periods provisions for other costs b) charged to equity The Company presents in its Financial Statements the value of deferred tax assets reduced by deferred income tax provision. A change in deferred income tax provision is presented in Note 16a. All indicated temporary differences are realised in 1 year the balance sheet date Note 5a Inventories INVENTORIES a) materials b) semi-finished products and production in progress c) finished products d) goods e) advances for deliveries Total inventories Page 31