INTERIM ABBREVIATED CONSOLIDATED QUARTERLY REPORT FOR III QUARTER THAT ENDED ON 30 SEPTEMBER QUMAK S.A. Al. Jerozolimskie Warszawa

Transcription

1 INTERIM ABBREVIATED CONSOLIDATED QUARTERLY REPORT FOR III QUARTER THAT ENDED ON 30 SEPTEMBER 2014 QUMAK S.A. Al. Jerozolimskie Warszawa

2 Validation of financial statements This abbreviated interim consolidated financial statements of the Qumak Capital Group, together with additional information and quarterly separate financial information of Qumak S.A. for the III quarter of 2014 is validated for publication by the Management Board of a parent entity in the following membership: Paweł Jaguś Aleksander Plata Jacek Suchenek President of the Board Vice President of the Board Member of the Board Warsaw, 6 November

3 TABLE OF CONTENTS Validation of financial statements... 2 I. INTRODUCTION TO FINANCIAL STATEMENTS Basic information on parent Company Subject of activity of parent Company Membership of managing and supervising bodies of parent Company and changes in their membership Membership of Qumak Capital Group Selected financial data Comment of Management Board of parent Company to consolidated financial results after III quarter of II. INTERIM CONSOLIDATED FINANCIAL STATEMENTS OF QUMAK CAPITAL GROUP FOR III QUARTER OF Consolidated profit and loss account Consolidated statement of total revenue Consolidated balance sheet Consolidated statement of changes in own capital Consolidated statement of cash flows Income from sales and reporting segments Explanatory notes to consolidated financial statements Operational activity costs Other operational revenue and costs Financial revenue Financial costs Income tax Discontinued operations and assets for sale Profit per one share Intangible assets Tangible fixed assets Inventory Trade receivables and other receivables Assets for unfinished contracts Other non-financial assets Cash and cash equivalents Share capital Supplementary capital Other capitals Retained profits Loans, debt instruments and bank credits Trade liabilities and other liabilities Provisions for employee benefits Other provisions Revenue in next periods Capital management Financial instruments Transactions with related entities Operational lease contracts

4 28. Results of applying IFRS for the first time Applied accounting rules Basic judgments and basis for estimating uncertainties III. ADDITIONAL INFORMATION Description of significant achievements or failures, which took place in III quarter of Description of factors and events, in particular unusual, having significant influence on achieved financial results Explanations concerning seasonality of Group s operations in presented period Information on inventory write-downs to net value possible to obtain and reversal of such write-downs Information on impaired write-downs of financial assets, tangible fixed assets, intangible and legal assets or other assets Information on reserves and write-downs Information on significant changes in estimates Information on significant transactions of buy and sale in fixed assets Indicating corrections of errors from previous periods Information on changes in economic situation and conditions of conducting business, which have significant influence on value of financial assets and financial liabilities Information on unpaid credit, loan or breaching significant provisions of credit or loan contract Information on granting by Qumak S.A. or its subsidiary credit or loan collateral or granting guarantees Description of transactions with related entities Information on issuing, buy and repayment of debt and equity securities Information on paid or declared dividend Information on realization of income from sales forecast Changes in contingent liabilities or contingent assets, which took place after the end of previous financial year Other information that may significantly influence evaluating property, financial standing and financial result Indicating results of changes in entity s structure List of major shareholders of Qumak S.A Information on Qumak S.A. shares held by managing and supervising persons Claims and disputed cases and significant settlements instituted in court Changes of basic rules of management of group s enterprises Other information significant for evaluating staff, property, financial standing, financial result and their changes, as well as information significant for evaluating ability to implement commitments Indicating events, which took place after balance day and may significantly influence future financial results and other information significant for evaluating property, financial standing and financial result of Qumak S.A. and Capital Group Description of factors, which will influence achieved results in at least next quarter perspective IV. SEPARATE FINANCIAL STATEMENTS OF QUMAK S.A. FOR III QUARTER OF Selected financial data Balance sheet Off-balace sheet items Profit and loss account Statement of changes in own capital Report on cash flows

5 I. INTRODUCTION TO FINANCIAL STATEMENTS 1. Basic information on parent Company Name : Qumak Spółka Akcyjna Registered office : Warszawa Al. Jerozolimskie 134 Phone : (022) Fax : (022) Tax Identification Number (NIP) : National Economy Register (REGON) : Polish Classification of Activities (PKD) : 46 Qumak S.A. (parent entity), being a parent entity of Capital Group Qumak S.A., was established by a Notary Deed of 4 December Company has its registered office in Warsaw at Al. Jerozolimskie 134, Warszawa. Company was entered on 13 June 2001 in register of entrepreneurs of the National Court Register maintained by Warsaw District Court, XII Commercial Division of the National Court Register under the number KRS The Company was given a statistical number REGON and number NIP Basic subject of activity of the Company by Polish Classification of Activities is wholesale trade (PKD4690Z). Duration of the Company is indefinite. Company s branches/local offices: Branch in Kraków at ul. Kobierzyńska 2 Local office in Bielsko Biała at ul. 11 Listopada 60/62 Local office in Gdańsk at ul. Trzy Lipy 3 2. Subject of activity of parent Company Spółka Akcyjna Qumak operates in IT area. Company s activity is concentrated on integration market and covers intelligent building technologies, system integration and business applications. Company provides comprehensive services in the scope of computerization of enterprises and institutions, in which significant elements are IT security, software and applications related with it, computer hardware deliveries and intelligent building technologies. Offered solutions business lines Qumak S.A.> Report for III quarter of 2014 Introduction to statements 5

6 Business Intelligence (BI) BI is a set of methodologies, processes and technologies, which transform large number of data into information useful for the business to enhance competitiveness of an enterprise. Within operations of this business line the Company offers comprehensive services within the scope of designing, implementing and maintaining solutions in the categories: data warehouses, powering ETL/ELT, Big Data applications, Business Intelligence applications, planning applications and Data Mining. Advanced customer service systems Comprehensive systems for professional service of interactions with clients is an area in which there are offered solutions: software for Contact Center, IVR applications, systems of speech recognition, systems for quality management and recording contacts with clients, integrated system ERP, systems for management of networks of shops and service of sales, own applications as a supplement of ready solutions. Systems for management of infrastructure, maintenance and service (EAM and ITSM) In the area of management of infrastructure and company s property, the Company offers to its clients a solution of EAM class, comprehensively supporting management of various types of resources production, congestion, transport or real estate. This solution enables also management of traffic maintaining processes. Company offers tools of a helpdesk class (ITSM), having a full set of functions constituting support to management of IT infrastructure and service of key IT processes on the basis of ITIL practice and ISO Data Center Qumak realizes Data Center facilities, fulfilling the role of a general contractor of the whole investment. Constructed server rooms are characterized by technical parameters, which meet strict requirements of TIA or UpTime standards. Large stress is always put on energy efficiency there are also performed facilities in a Green Data Center standard. In the whole investment process the Company takes full responsibility for a created data center: conducts feasibility study, designs, constructs, equips in IT infrastructure, provides service, as well as provides services of relocation and collocation of DC facilities. Projects are managed in accordance with the PRINCE2 methodology. In its portfolio the Company has the biggest and the most innovative server rooms in Poland. In total these are 45 facilities of total server area covering around sq. m, created for the largest companies in commercial market and public sector institutions. Aviation infrastructure Within the scope of this business line the Company offers systems for management of air operations and solutions for airports and landing areas. Reliable air operations environments are realized on the basis of specialized systems of passengers and planes handling and safety. It offers systems of navigational lighting and their control, radio navigation, automatic baggage and passenger information systems. Every implementation is preceded with detailed analysis of operational, functional and business needs of a client. Portfolio of the company includes solutions for newly constructed and renovated Qumak S.A.> Report for III quarter of 2014 Introduction to statements 6

7 airports, military airports transformed into Regional Airports and for Polish Air Navigation Services Agency and landing areas for helicopters. Intelligent Transportation Systems (ITS) ITS means using ICT technologies (Information & Communication Technologies) in the area of transport, individual and public. Implementing solutions of this class aims at improving efficiency of traffic through by reducing travelling time and communication nuisance, such as pollution or noise, and increasing city's traffic safety. Undertaking performing of all stages of an investment process, the Company comprehensively realizes among others: implementing and launching specialized software, integration of systems and infrastructure on a road, e.g. traffic lights controllers. We provide service and work continuity of all systems. BMS and building technologies Comprehensive services of consultancy, designing and conducting investments related with integrated security systems of facilities and communication systems, is a domain of the BMS business line. Portfolio of the Company includes implementations in single buildings, in extensive facilities and dispersed facilities or complexes of buildings. The company creates all products necessary for an investment process, including: audits, feasibility study, development strategies, concepts, designs, realizations, launchings and trainings, as well as provides service. Company holds facility security clearance of the I degree, certificate confirming full ability to protect classified information bearing the clause SECRET, EU SECRET and NATO SECRET and Secret Office. Holds license issued by the Ministry of the Interior and Administration for performing security systems and employs persons holding necessary licenses and authorizations. IT systems for public sector The Company s offer for public sector covers analysis, designing, realization, implementation and maintaining dedicated IT solutions, meeting business needs of the ordering party, as well as strict criteria of procedures concerning public procurement law. Company implements comprehensive solutions, which include: dedicated software, equipment and network infrastructure, solutions in the scope of security, archiving systems of data bases and warehouses, as well as platforms enabling digitalization of archives. Business Continuity & Data Security Process of storing, protection, processing and transfer of data in demanding business environments of clients is a specialty, which the company develops within the frames of competence of a line of Business Continuity & Data Security. In this area the company offers many services: designing and implementation of necessary infrastructure, implementation of advanced communication services, providing appropriate level of availability of launched IT services, protection and monitoring of every context of access to data, security audits. Recipients of services are entities in which theft, loss or periodic lack of access to data may generate high losses or prevent from conducting operations, among others enterprises in a financial, telecommunication sector, as well as public institutions. Qumak S.A.> Report for III quarter of 2014 Introduction to statements 7

8 Multimedia exhibitions Modern technologies in public space deepen engagement of organizations in dialogue with an individual recipient. Company offers a set of services covering designing, production, implementation, maintenance and development of exhibitions with particular inclusion of multimedia and interactive technologies for the needs of museums, science centers, and education. These technologies are used also commercially in large public spaces: shopping malls, railway stations, airports, trade displays. The Company s asset is a comprehensive approach to realizations, starting from designing and performing interactive and multimedia devices to performing content. Management and service of computer systems Company offers comprehensive set of services, providing a guarantee of smooth operation of IT systems of clients. It provides full functionality of provided resources starting from computer hardware, software, to infrastructure. Professional, fast service and providing comprehensive services on the highest level guarantee clients safe functioning. High quality of services is confirmed in SLA: guarantee of the shortest response times and the fastest repair realization times. The Company s clients are large public institutions, enterprises of many branches and corporations. To clients providing extensive services the Company offers additional support: equipment repairs, administration, helpdesk, migrations, rollouts, maintaining and inspections. Qumak provides service to office infrastructure, advanced server solutions, intelligent building systems and advanced Data Center. Outsourcing of IT specialists / Outsourcing of IT services Services covering delivering qualified IT employees and IT outsourcing is an area within a business line of Outsourcing. Apart from recruitment and selection of candidates the company provides human resources, administration, and legal services of all outsourced employees, provides services starting from helpdesk, through administration of systems, and providing training, conducting analysis and audits, and comprehensive realization of projects of a portfolio of IT projects. Among our clients there are above all large enterprises from a financial, energy, telecommunication and technological sector. 3. Membership of managing and supervising bodies of parent Company and changes in their membership Management Board of the Company Paweł Jaguś Aleksander Plata Jacek Suchenek - President of the Management Board - Vice President of the Management Board - Member of the Management Board Qumak S.A.> Report for III quarter of 2014 Introduction to statements 8

9 Supervisory Board Marek Michałowski Chairman of the Supervisory Board Jan Pilch Vice Chairman of the Supervisory Board Monika Hałupczak Member of the Supervisory Board Maciej Matusiak - Member of the Supervisory Board Wojciech Włodarczyk - Member of the Supervisory Board In the reporting period there were no changes in membership of the Management Board and the Supervisory Board of Qumak S.A. 4. Membership of Qumak Capital Group the balance day the membership of Qumak S.A. Capital Groups is the following: Qumak S.A. as a parent entity, Skylar Sp. z o.o. subsidiary, Star ITS Sp. z o.o. subsidiary. Financial statements of all entities if the Group were prepared for the same reporting period. Financial year for entities included in the consolidated financial statements is a calendar year. Subsidiaries Share capital Share of Qumak in share capital in % Star ITS Sp. z o.o. PLN 250, % SKYLAR Sp. z o.o. in organization PLN 250, % STAR ITS limited liability company with its registered office in Gdańsk, ul. Trzy Lipy 3 The company was established on 9 July Registered on 7 August 2014 in Gdańsk District Court Gdańsk-Północ in Gdańsk, VII Commercial Division of the National Court Register under the number KRS Share capital is PLN 250, (1000 shares of face value of PLN ), and Qumak S.A. took up 930 shares of the total value of PLN 232, The company conducts its business within the scope of Intelligent Transportation Systems, it offers in particular: Qumak S.A.> Report for III quarter of 2014 Introduction to statements 9

10 - comprehensive ITS implementations; - calibration, administration and maintenance of traffic control and management systems; - designing and consulting within the scope of traffic control systems; - expanding and adjusting already existing traffic control systems. SKYLAR limited liability company in organization with its registered office in Warsaw, ul. Niemcewicza 26 The company was established on 9 July 2014 and registered on 21 October 2014 in Warsaw District Court in Warsaw, XII Commercial Division of the National Court Register under the number KRS Share capital is PLN 250, (1000 shares of the face value of PLN ), the capital was in whole took up by Qumak S.A. (paid in whole). The company employs high class engineers specializing in projects concerning modernization and service of airports and landing areas, as well as implementations providing security at airports. The company conducts its business within the scope of aviation technologies, it offers among others: - designing, implementing and maintenance of navigation systems and meteo radars, modernization and service of radio communication systems; - designing and service of heliports and landing areas for military and civilians; - assembly and service of baggage systems (BHS) and scanners (EDS); - comprehensive implementations within the scope of security and protection. Established companies will offer designing and engineering, as well as maintenance services respectively: on the market of intelligent transportation systems and aviation infrastructure. This in effect is to enable Qumak Group increasing market penetration in selected segments and, thanks to offering highly specialized services, increase profitability of the whole organization. Their creation is closely related to the implementation of the next stage of the company s strategy for the years Qumak S.A.> Report for III quarter of 2014 Introduction to statements 10

11 5. Selected financial data Period from to In thousand PLN Period from to In thousand PLN Period from to In thousand EUR Period from to In thousand EUR I. Net revenue from sales of products, goods and materials II. Profit (loss) from operation activities III. Gross profit (loss) IV. Net profit (loss) V. Net cash flows from operation activities VI. Net cash flows from investment activities VII. Net cash flows from financial activities VIII. Net cash flows, in total IX. Assets, in total X. Liabilities and provisions for liabilities XI. Long-term liabilities XII. Short-term liabilities XIII. Own capital XIV. Share capital XV. Number of shares (in items) XVI. Profit (loss) annualized per one ordinary share (in PLN/ EUR) XVII. Diluted annualized profit (loss) per one ordinary share (in PLN/EUR) XVIII. Book value per one share (in PLN/EUR) XIX. Diluted book value per one share (in PLN/EUR) XX. Declared or paid dividend per one share (in PLN/EUR) Principles of calculation of financial statements Particular items of assets and liabilities in the balance sheet were calculated by exchange rates applicable on the last day of the period: Table A of average exchange rates no 252/A/NBP/2013 of EUR exchange rate 1 EUR = Table A of average exchange rates no 189/A/NBP/2014 of EUR exchange rate 1 EUR = Particular items in profit and loss account, as well as report from cash flows were calculated by exchange rates constituting arithmetic average of average exchange rates published by NBP for EUR, applicable on the last day of every month in a given reporting period: Arithmetic average of average exchange rates of NBP for the end of every month for the period Arithmetic average of average exchange rates of NBP for the end of every month for the period Comment of Management Board of parent Company to consolidated financial results after III quarter of 2014 At the turn of July and August 2014, Qumak S.A. entered into the second stage of realization of the strategy for years , by starting to build a Capital Group. This process is conducted on the basis of acquisition of competences and obtaining experts: skilled managers or micro entrepreneurs, who specialize in an interesting market area from the perspective of Qumak s business model. Qumak, thanks to its strong market position, sales force and financial abilities, becomes for them a platform for development. After obtaining the proper scale of operations and meeting financial assumptions, managers together with teams receive operational Qumak S.A.> Report for III quarter of 2014 Introduction to statements 11

12 independence through transferring to subsidiaries, share capital of which is paid by Qumak S.A. These companies are controlled through capital and being a part of supervisory boards by Qumak S.A. Objective of subsidiaries is deep penetration of niches in which they operate, expanding their competences leading to taking over margins of subcontractors and achieving a leading position in their segments of the market. All companies already operating, as well as these to be established are to offer mainly consulting and designing services, which will result in low costs of operation, relatively low revenue from sales and high margins and profitability. Their operations will not interfere with competences of the parent company, because in the Qumak S.A. business lines there will remain works concerning large orders, requiring proper financial standing and integration competences (coordination of many entities, process and project management, hardware delivery, etc.). Qumak S.A. will be either a tenderer of a leader of consortium in case of big budget tenders. With regard to the described above changes in the III quarter of 2014, for the first time there are presented consolidated financial statements, simultaneously transferring to reporting under the International Accounting Standards. Entities subject to consolidation: Qumak S.A. (parent entity), Star ITS sp. z o.o. which started its business operations on , and Skylar sp. z o.o., in which an initial capital was paid so far. This Company will start its business operations on In the III quarter of 2014 Qumak Capital Group reached revenue from sales amounting to PLN million, in comparison with PLN million last year. Net profit for the III quarter is PLN 849 thousands, when in analogical quarter in 2013 net profit was PLN 5.6 million. In the market area, in which the Group operates, results of particular quarters are first of all depending on the level of advancement and invoicing of performed contracts. Level of sales and net profit achieved in the III quarter derives mainly from transferring performance of some contracts to the IV quarter. Positive dynamics of increase in sales is visible cumulatively after three quarters of 2014 the Group achieved revenue amounting to PLN million, in comparison with nearly PLN 350 million in a comparable period last year, which means increase by 15.7%. Simultaneously there was noted a large dynamics of increase in net profit. Year by year it grew over three times from the level of PLN 5.3 million, in comparison with PLN 1.7 million last year. Management Board of the Company evaluates that in the IV quarter revenue of the Group have a great potential of growth. This optimism derives among others from the high value of orders portfolio, which at the end of the III quarter of 2014 reached the level of over PLN 526 million (value of contracts under performance, not included in the previous periods), from which PLN 133 million is to be settled in the IV quarter To compare, in the same period last year the value of orders portfolio was PLN 454 million. Last quarter of the year on a technology market is most often a quarter of the highest sales. Therefore, value of sales in the last months of the year will be significantly higher than the value of current orders portfolio for this quarter. Qumak S.A.> Report for III quarter of 2014 Introduction to statements 12

13 Basic financial ratios of the Qumak Capital Group: Table: Profitability ratios of the Qumak Capital Group III q III q Sales profitability (gross) 15.39% 14.93% 15.07% EBITDA profitability 2.29% 1.86% 0.84% Operating profit profitability 1.77% 1.44% 0.37% Gross profitability 1.70% 1.74% 0.66% Net profitability 1.30% 1.32% 0.48% Table: Financing structure ratios of the Qumak Capital Group General debt ratio Interest-bearing debt to assets ratio Coverage of fixed assets with own capital ratio Own capital indebtedness ratio Rules for ratios calculation: General debt ratio liabilities and provisions for liabilities in total /assets in total, Interest-bearing debt to assets ratio interest-bearing indebtedness / assets in total, Coverage of fixed assets with own capital ratio own capital / fixed assets, Own capital indebtedness ratio interest-bearing indebtedness /own capital Table: Liquidity ratios of the Qumak Capital Group Current liquidity ratio ( current ratio) Quick liquidity ratio (quick ratio) Rules for ratios calculation: Current financial liquidity ratio = current assets / short-term liabilities Quick financial liquidity ratio = (current assets inventory short-term accruals) / short-term liabilities Qumak S.A.> Report for III quarter of 2014 Introduction to statements 13

14 II. INTERIM CONSOLIDATED FINANCIAL STATEMENTS OF QUMAK CAPITAL GROUP FOR III QUARTER Consolidated profit and loss account Note no Period from to Period from to Period from to Period from to Continuing operations Revenue from sales of products Revenue from sales of goods and materials Revenue in total Own costs of sales Value of sold goods and materials Costs of sold products, goods and materials in total Gross profit (loss) from sales Sales costs Administration costs Other operating revenue Other operating costs Profit (loss) from operations Financial revenue Financial costs Profit (loss) before taxation Income tax Net profit (loss) from continuing operations Discontinued operations Net profit (loss) from discontinued operations Net profit (loss) Consolidated statement on total revenue Other total revenue Valuation effects of financial assets available for sale Other total revenue (net) Total revenue Net profit for: Shareholders of parent company Minority shareholders Total income for: Shareholders of parent company Minority shareholders Profit (loss) per one share [in PLN per one share] 7 From continuing operations: Ordinary Diluted

15 3. Consolidated balance sheet Note no ASSETS Fixed assets Goodwill Other intangible assets Tangible fixed assets Trade receivables and other receivables Other financial assets Deferred income assets Other non-financial assets Fixed assets in total Current assets Inventory Trade receivables and other receivables Other financial assets, including : Assets for trade Current income tax receivables Unfinished contracts assets Other non-financial assets, including : Advances for deliveries Prepayments Cash and cash equivalents Assets classified as for sale Current assets in total Assets in total CAPITALS AND LIABILITIES Equity Initial capital Supplementary capital Reserve capital Retained profits Current period result Other capitals Other total incomes Capitals for shareholders of parent company Capitals for minority shareholders, including : 4 - Net profit for minority shareholders - - Equity in total Long-term liabilities Long-term loans and bank credits Trade liabilities and other liabilities Other financial liabilities Reserves for employees benefits pension fund Reserve for deferred tax Other long-term reserves warranty repairs Other non-financial liabilities

16 Long-term liabilities in total Short-term liabilities Short-term loans and bank credits Trade liabilities and other liabilities Other financial liabilities Reserves for employees benefits Current income tax liabilities Other short-term reserves Future periods revenue Liabilities directly related with fixed assets classified as for sale Short-term liabilities in total Liabilities in total Capital and liabilities in total

17 4. Consolidated statement of changes in own capital Initial capital in total, including: Paid share capital Unpaid share capital Supplementary capital Reserve capital Other capitals evaluation of financial assets Retained profits Current period financial result Capitals for shareholders of parent company Capitals for noncontrolling shares Own capital in total 1 January Net profit allocation Payment of dividend Total income for the period, in total September Net profit allocation Payment of dividend Total income for the period, in total December Share issue Net profit allocation Payment of dividend Total income for the period, in total September

18 5. Consolidated statement of cash flows Note no Period from to Period from to Period from to Period from to Cash flows from operation activities Profit (loss) before taxation Corrections by items: Depreciation Exchange rates differences Received interest Paid interest Received dividend (Profits) losses from investment activities Change in inventory Change in trade receivables and other Change in trade liabilities and other Change in provisions Change in other assets and liabilities Paid income tax Other Net cash flows from operation activities Flows from investment activities Inflows Sale of intangible assets and tangible fixed assets Sale of investment property Inflows from financial assets, including: Repayment of granted loans Received interest Other investment inflows Expenses Buy of intangible assets and tangible fixed assets Buy of investment property Expenses for financial assets Other investment expenses Net cash flows from investment activities Flows from financial activities Inflows Net inflows from capital instruments issue Taken credits and loans Other financial inflows Expenses Dividends and other payments for owners Repayment of credits and loans Repayment of other financial liabilities Paid interest Net cash flows from financial activities Net increase of cash and cash equivalents Cash and cash equivalents in the beginning of the period Influence of exchange rate changes on cash balance in foreign currencies Cash and cash equivalents in the end of the period

19 6. Income from sales and reporting segments Qumak Capital Group conducts financial assessment of its operations broken down by business lines, evaluating volume of sales, margin, and most of all operational result of a given line. This division is based on specificity of products and services provided to recipients. Description of business lines is in the Chapter I Introduction to financial statements, in the point Subject of activity of parent company. Assessment of segments results is made on the basis of EBIT (income). Operating result is calculated by decreasing realized gross profit from sales of a given business line by directly borne sales costs and percentage charge of indirect costs of sales. The following reporting segments were identified: Data Center Aviation infrastructure Intelligent Transportation Systems BMS and building technologies IT systems for public sector Business Continuity & Data Security Multimedia exhibitions Management and service of computer systems Outsourcing of IT specialists Other (segment includes aggregated business lines that at the time of the presentation do not meet quantity and value thresholds, such as: Business Intelligence, advanced customer service systems, systems of infrastructure, maintenance and service management, ITS) Table: Revenue from sales by segments Segments I-III q % % I-III q % Data Center % % % Aviation infrastructure % % % BMS and building technologies % % % IT systems for public sector % % % Multimedia exhibitions % % % Management and service of computer systems % % % Sale of computer hardware and licenses % % % Other segments % % % Net sales revenue in total % % % Table: Operating result by segments Segments I-III q I-III q Data Center Aviation infrastructure BMS and building technologies IT systems for public sector

20 Multimedia exhibitions Management and service of computer systems Sale of computer hardware and licenses Other segments Costs of general administration Other operating revenue and costs Reserve for National Stadium Profit (loss) from operation activities Net revenue and costs of goods, materials and manufactured products are presented in accordance with the rules set in the accounting policy. For reasons of a different approach to settlement of trade costs, when calculating profitability of segments there was applied a method of summary of working time spent directly for a given contract, and what comes next a given segment. Proportionally to borne direct costs of a given segment there were calculated indirect trade, realization, support and development costs. Costs of general administration are not settled by segments. The whole table of profitability of segments gives a result compatible with the Group s operating result. Assets, intangible assets, and liabilities are not added by reference to segments. Financing of the Group, income tax and administration costs items and other net revenue/costs are managed on the level of the Group and are not allocated to operating segments. For all segments there are applied uniform accounting rules based on proper financial reporting policy. Group conducts its operations mainly in Poland. Export sales is currently incidental and does not constitute a significant share in sales and results of the Group. Table: Revenue from sales geographical structure For the period Revenue from sales of products, including: Domestic sales Export sales Revenue from sales of services, including: Domestic sales Export sales Revenue from sale of goods, including: Domestic sales Export sales

21 7. Explanatory notes to consolidated financial statements 1. Operational activity costs Operational activity costs in periods covered in this consolidated financial statements were as follows: For the period For the period Depreciation, including: Depreciation of fixed tangible assets Depreciation of intangible assets Use of raw materials and other materials External services Costs of employees benefits Taxes and payments and other costs Change in condition of products Costs of manufacturing products for own needs Operational activity costs in total Costs of sales Costs of administration Own costs of sales Costs of employees benefits For the period Short-term employees benefits Post-employments benefits Other long-term employees benefits Termination of employment benefits Other employees benefits Costs of employees benefits in total Employment For the period Average number of employees, by professional groups: Office staff Administration Salesmen Engineers Consultants Service Programmers

22 2. Other operational revenue and costs Other operational revenue Income from sale of assets: Income from sale of tangible and intangible fixed assets Income from liquidation of tangible and intangible fixed assets Dissolution of write-downs: Inventory Trade receivables and other Other Other operational revenue: Grants Reserves dissolution Received penalties and compensations Other Other operational revenues in total Other operational costs Losses from sale of assets: Losses from sale of tangible and intangible fixed assets Losses from liquidation of tangible and intangible fixed assets Creating write-downs: Inventory Trade receivables and other Other Other operational costs: Creation of reserves Paid penalties and compensations Membership fees Other Other operational costs in total

23 3. Financial revenue Interest revenue: Bank accounts and deposits Investments for sale Loans and receivables Financial assets, which are impaired Discount Profits from evaluation of financial assets and liabilities: Profits from evaluation of financial assets valued in fair value by profits account Other financial revenue Profit from exchange rates differences Received dividends Other Financial revenue in total Investment revenue from financial assets by categories of assets: Financial assets for sale Loans and receivables Financial assets valued in fair value by profits account Other (covering cash and bank deposits)

24 4. Financial costs Interest costs: Interest from loans, credits and debt instruments Interest from trade liabilities and other Interest from liabilities valued in fair value Interest from other financial liabilities Discount costs Interest costs in total Losses from evaluation of financial assets and liabilities: Losses from evaluation of financial assets valued in fair value by profits account by fair value option Other financial costs - Losses from exchange rates differences Other financial costs Other financial costs in total Financial costs in total Income tax 5.1. Current income tax Current income tax: Current tax burden Corrections shown in current year with regard to tax from previous years Deferred income tax Cost/(income) tax in total Differences between face and effective tax rate are the following: Gross profit before taxation Cost of income tax by statutory rate (19%) Tax effect of revenue not being revenue according to tax laws Tax effect of costs not being costs of obtaining according to tax laws Tax effect of tax losses deducted in the period

25 Tax effect of tax losses borne in the period Corrections shown in current year with regard to tax from previous years Cost of income tax included in profit and loss account Current tax burden is calculated on the basis of statutory tax laws. Applying these laws differentiates tax profit (loss) from accounting net profit (loss), with regard to excluding non-taxable revenue and costs not being costs of obtaining revenue and items of costs and revenue, which will never be taxable. Tax burdens are calculated on the basis of tax rates statutory during a given financial year. Within the scope of income tax, the Group is subject to general rules in this regard. The Group does not constitute a tax capital group, and does not conduct its business in a Special Economic Zone. Tax year, as well as balance year are overlapping with a calendar year. Settlements for current income tax include: Current assets/ (liabilities) for income tax Due tax return Income tax to be paid Other Deferred income tax Deferred tax in periods covered by these consolidated financial statements was the following: Deferred tax as of the beginning of the period Included in profits account Included in other elements of total incomes Transferred from other elements of total income to profits account Taking up /sale the end of the period Assets for deferred tax Receivables write-downs Inventory write-downs Reserve for employees bonuses Reserve for warranty repairs Reserve for not used leave Reserve for pensions benefits Other reserves Shares evaluation Negative exchange rates differences Long-term discount of security

26 Liabilities for deferred tax Contracts evaluation Positive exchange rates differences Other Long-term discount of security Net deferred tax Shown in the statements as: Assets for deferred tax Liabilities for deferred tax Deferred tax as of the beginning of the period Included in profits account Included in other elements of total income Transferred from other elements of total income to profits account Taking up /sale the end of the period Assets for deferred tax Receivables write-downs Inventory write-downs Reserve for employees bonuses Reserve for warranty repairs Reserve for not used leave Reserve for pensions benefits Other reserves Shares evaluation Negative exchange rates differences Long-term discount of security Liabilities for deferred tax Contracts evaluation Positive exchange rates differences Other Long-term discount of security Net deferred tax Shown in the statements as: Assets for deferred tax Liabilities for deferred tax Deferred tax as of

27 the beginning of the period Included in profits account Included in other elements of total income Transferred from other elements of total income to profits account Taking up /sale the end of the period Assets for deferred tax Receivables write-downs Inventory write-downs Reserve for employees bonuses Reserve for warranty repairs Reserve for not used leave Reserve for pensions benefits Other reserves Shares evaluation Negative exchange rates differences Long-term discount of security Liabilities for deferred tax Contracts evaluation Positive exchange rates differences Other Long-term discount of security Net deferred tax Shown in the statements as: Assets for deferred tax Liabilities for deferred tax Deferred tax as of the beginning of the period Included in profits account Included in other elements of total income Transferred from other elements of total income to profits account Taking up /sale the end of period Assets for deferred tax Receivables write-downs Inventory write-downs Reserve for employees bonuses Reserve for warranty repairs Reserve for not used leave Reserve for pensions benefits Other reserves Shares evaluation Negative exchange rates differences Long-term discount of security