Consolidated Financial Statements of Qumak Capital Group

Transcription

1 Consolidated Financial Statements of Qumak Capital Group for business year that ended on 31 December 2014 QUMAK S.A. Al. Jerozolimskie Warszawa

2 Validation of the financial statements These consolidated financial statements of Qumak Capital Group, for a business year that ended on 31 December 2014, are validated for publishing by the Management Board in the following membership: Paweł Jaguś Aleksander Plata Jacek Suchenek President of the Management Board Vice President of the Management Board Vice President of the Management Board Warsaw, 24 April 2015 Qumak S.A.> Consolidated Annual Report for

3 TABLE OF CONTENTS Validation of the financial statements... Błąd! Nie zdefiniowano zakładki. CONSOLIDATED FINANCIAL STATEMENTS OF QUMAK GROUP FOR BUSINESS YEAR THAT ENDED ON 31 DECEMBER Capital Group s basic information Parent Company s subject of activity Consolidated selected financial data Consolidated profit and loss account Consolidated statement of total revenue Consolidated balance sheet Consolidated statement of changes in equity Consolidated statement of cash flows Income from sales Segmentation and geographical structure... Błąd! Nie zdefiniowano zakładki. 10. Explanatory notes to consolidated financial statements... Błąd! Nie zdefiniowano zakładki. 1. Costs of operations... Błąd! Nie zdefiniowano zakładki. 2. Other revenue and costs of operations Financial revenue Financial costs Income tax Discontinued activity and assets available for sale Profit per one share... Błąd! Nie zdefiniowano zakładki. 8. Intangible assets... Błąd! Nie zdefiniowano zakładki. 9. Tangible fixed assets... Błąd! Nie zdefiniowano zakładki. 10. Inventory Trade receivables and other receivables Assets for unfinished contracts... Błąd! Nie zdefiniowano zakładki. 13. Other non-financial assets... Błąd! Nie zdefiniowano zakładki. 14. Cash means and cash equivalents... Błąd! Nie zdefiniowano zakładki. 15. Share capital... Błąd! Nie zdefiniowano zakładki. 16. Supplementary capital Other capitals... Błąd! Nie zdefiniowano zakładki. 18. Retained profits... Błąd! Nie zdefiniowano zakładki. 19. Loans, debt instruments and bank credits... Błąd! Nie zdefiniowano zakładki. 20. Trade liabilities and other liabilities... Błąd! Nie zdefiniowano zakładki. 21. Provisions for employee benefits... Błąd! Nie zdefiniowano zakładki. 22. Other provisions... Błąd! Nie zdefiniowano zakładki. 23. Revenue of next periods... Błąd! Nie zdefiniowano zakładki. 24. Capital management... Błąd! Nie zdefiniowano zakładki. 25. Financial instruments... Błąd! Nie zdefiniowano zakładki. 26. Remuneration of key personnel... Błąd! Nie zdefiniowano zakładki. 27. Transactions with related entities... Błąd! Nie zdefiniowano zakładki. 28. Operational lease contracts... Błąd! Nie zdefiniowano zakładki. 29. Results of applying IFRS for the first time... Błąd! Nie zdefiniowano zakładki. 30. Liabilities and contingent assets... Błąd! Nie zdefiniowano zakładki. 31. Court proceedings... Błąd! Nie zdefiniowano zakładki. 32. Events after balance day... Błąd! Nie zdefiniowano zakładki. 33. Significant events influencing Company s financial situation of the Group Applied accounting rules... Błąd! Nie zdefiniowano zakładki. 35. Basic judgements and grounds for estimating uncertainty... Błąd! Nie zdefiniowano zakładki. 3

4 CONSOLIDATED FINANCIAL STATEMENTS OF QUMAK GROUP FOR BUSINESS YEAR THAT ENDED ON 31 DECEMBER Capital Group s basic information The Capital Group includes: Qumak Spółka Akcyjna parent company Company s name : Qumak Spółka Akcyjna Registered office : Warszawa Al. Jerozolimskie 134 Phone no : (022) Fax : (022) Tax Identification Number (NIP) : National Economy Register (REGON) : Polish Classification of Activities (PKD) : Z Qumak S.A., a parent company of the Capital Group Qumak S.A., was established by a Notary Deed of 4 December The Company has its registered office in Warsaw at Al. Jerozolimskie 134, Warsaw. The Company was entered on 13 June 2001 in the 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 under the Polish Classification of Activities is wholesale trade (PKD4690Z). Duration of the Company is indefinite. The Company s branches/local offices: Branch in Kraków at ul. Kobierzyńska 2 Local office in Gdańsk at ul. Trzy Lipy 3 Star ITS Spółka z ograniczoną odpowiedzialnością subsidiary Company s name : Star ITS Spółka z ograniczoną odpowiedzialnością Registered office : Gdańsk, Ul. Trzy Lipy 3 Tax Identification Number (NIP) : National Economy Register (REGON) : Polish Classification of Activities (PKD) : Z Star ITS Sp. z o.o. was established by a Notary Deed of 9 July

5 Qumak S.A. holds 93% of shares of Star ITS Sp. z o.o. Subject of activity is comprehensive implementation, calibration and maintenance of traffic control and management. Skylar Spółka z ograniczoną odpowiedzialnością subsidiary Company s name : Skylar Spółka z ograniczoną odpowiedzialnością Registered office : Warszawa, Ul. Niemcewicza 26 Tax Identification Number (NIP) : National Economy Register (REGON) : Polish Classification of Activities (PKD) : Z Skylar Sp. z o.o. was established by a Notary Deed of 9 July Qumak S.A. holds 100% shares of Star ITS Sp. z o.o. Subject of activity is designing, implementing and maintenance of navigation systems (lighting and radio of ILS/DME DVOR/DME type), systems of meteorological guarding (radar stations, AWOS, Ice- Alert), modernization and maintenance of radiocommunication systems, as well as designing, realization, launching, registration in Civil Aviation Office, as well as providing assistance in obtaining EU grants for full time landing areas for helicopters. 2. Parent Company s subject of activity Joint stock company Qumak operates in IT area. The Company s activity is concentrated on integration market and covers intelligent building technologies, system integration and business applications. The 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. Full description of solutions offered by the Parent Company is included in the Management Board s report on activity of Qumak Capital Group in

6 3. Consolidated selected financial data Period from to In thousands PLN Period from to Period from to In thousands EUR Period from to I. Net revenue from sales of products, goods and materials II. Profit (loss) from operation activities III. EBITDA IV. Gross profit (loss) V. Net profit (loss) VI. Net profit (loss) for shareholders of parent entity VI. Net cash flows from operation activities VII. Net cash flows from investment activities VIII. Net cash flows from financial activities IX. Net cash flows, in total X. Assets, in total XI. Liabilities and provisions for liabilities XII. Long-term liabilities XIII. Short-term liabilities XIV. Own capital of Capital Group XV. Share capital of parent entity XVI. Number of shares in parent entity (in items) XVII. Profit (loss) annualized per one ordinary share (in PLN/ EUR) XVIII. Diluted annualized profit (loss) per one ordinary share (in PLN/EUR) XIX. Book value per one share (in PLN/EUR) XX. Diluted book value per one share (in PLN/EUR) XXI. 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 252/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

7 4. Consolidated profit and loss account Note no 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 Share in profits of affiliated entities - - Profit (loss) on sale in whole or a part of shares of subordinated entities - - Profit (loss) before taxation Income tax Net profit (loss) from continuing operations Discontinued operations - - Net profit (loss) from discontinued operations Net profit (loss) for: Shareholders of parent entity Minority shareholders 9-5. Consolidated statement of total revenue Items which can be included during next periods in profit and loss account: Other total revenue Valuation effects of financial assets available for sale Income tax concerning other total revenue Other total revenue (net) Total revenue Net profit for: Shareholders of parent company Minority shareholders Total revenue for: 7

8 Shareholders of parent company Minority shareholders Profit (loss) per one share [in PLN per one share] 7 From continuing operations: Ordinary Diluted ASSETS 6. Consolidated balance sheet Note no As of As of As of Fixed assets Goodwill Other intangible assets Intangible assets under realization Tangible fixed assets Investments in items valued by equity method Trade receivables and other receivables (warranty bonds) Other financial assets, including: Granted loans - Financial instruments kept until maturity Financial instruments available for trade Financial instruments valued in fair value by financial result - Assets for deferred tax Other assets Fixed assets in total Current assets Inventory Trade receivables and other receivables Other financial assets, including: Granted loans Financial instruments kept until maturity - - Financial instruments available for trade Financial instruments valued in fair value by financial result Current receivables for income tax Assets for unfinished contracts Other non-financial assets, including: Costs accruals Advance payments for purchases Cash means and cash equivalents Assets classified as available for sale - Current assets in total Assets in total CAPITALS AND LIABILITIES Equity 8

9 Share 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 27 Equity in total Long-term liabilities - Long-term loans and bank credits Trade liabilities and other liabilities (deposit) Other financial liabilities, including: Financial liabilities valued in fair value 19 - Other financial liabilities Reserves for employees benefits Reserve for deferred tax 5 Other long-term reserves (warranty repairs) Other non-financial liabilities - Long-term liabilities in total Short-term liabilities Short-term loans, debt instruments and bank credits Trade liabilities and other liabilities Other financial liabilities Other financial liabilities - Reserves for employees benefits Current income tax liabilities Other short-term reserves Other non-financial liabilities, including: Revenues accruals Grants from EU funds for project performance Liabilities directly related to fixed assets classified as available for sale Short-term liabilities in total Liabilities in total Capital and liabilities in total Consolidated statement of changes in equity Period from to Period from to Statement of changes in own capital (fund) Equity at the beginning of the period Share capital at the beginning of the period (BO) including paid share capital including unpaid share capital Changes in share capital - - a) increases (for) - - b) decreases (for) Share capital (fund) at the end of the period

10 2. Supplementary capital (fund) at the end of the period Changes in supplementary capital (fund) a) increases (for) issuing shares above face value - - -allocation of profit (statutory) allocation of profit (above statutory minimum value) - - b) decreases (for) covering losses - - -costs of issuing shares - - -payment of dividends Supplementary capital (fund) at the end of the period Reserve capital at the beginning of the period Changes in reserve capital a) Increases (for) - - b) Decreases payment of dividend Reserve capital at the end of the period Other capitals at the beginning of the period other total revenue at the beginning of the period Changes in other capitals in total a) increases (for) change of evaluation of financial assets b) decreases (for) change of evaluation of financial assets Other capitals in total at the end of the period Profits from previous years at the beginning of the period Changes in profits from previous years a) increases (for) - - -allocation of profit from previous years - - b) decreases (for) covering loss from previous years -payment of dividend increases of supplementary capital increases of other reserve capitals Profits from the previous years at the end of the period Net result for shareholders of parent entity a) net profit b) net loss c) profit write-downs Minority shares at the beginning of the period Changes in total 27 - a) Increases (for) from taking up shares net profit (loss) for minority shareholders other total revenue for minority shareholders - - b) Decreases (for) Minority shares at the end of the period 27 - II. Own capital (fund) at the end of the period (BZ) Capitals for shareholders of parent company Capitals for non-executive shareholders 27-10

11 8. Consolidated statement of separate cash flows Note no Period from to Period from to Cash flows from operations 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 liabilities for factoring Change in other assets and liabilities Paid income tax Other Net cash flows from operations 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 Purchase of intangible assets and tangible fixed assets Purchase 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 18 - 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 means and cash equivalents Cash means and cash equivalents at the beginning of the period Influence of exchange rate changes on cash balance in foreign currencies Cash means and cash equivalents in the end of the period

12 9. Income from sales Segmentation and geographical structure Qumak 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. Assessment of segments results is made on the basis of EBIT (operating profit). 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) Net income and costs of goods, materials and manufactured products are presented in accordance with the rules set in accounting policy. For reasons of a different approach to settle trade costs when calculating profitability of segments there was used a method of settlement of labor time spent directly at a given contract, and what comes next at a given segment. Proportionally to borne direct costs of a given segment there were calculated indirect trade costs of realization and support and development. Costs of general administration are not settled in division to segments. The whole profitability of segments gives a result complying with an operating result of the Company. Assets, intangible assets and liabilities are not attributed to segments in records. Financing of the Company, income tax and items of administration costs as well as other net income/costs are manager at the level of the Company and are not allocated to operational segments. For all segments there are applied unitary accounting rules based on a policy of appropriate financial reporting. Table: Income from sales divided into segments Segments 2014 % % 12

13 Data Center % % Aviation infrastructure % % BMS and building technologies % % IT systems for public sector % % Multimedia exhibitions % % Management and service of computer systems % % IT systems for public sector % % Other segments % % Net income from sales in total % % Table: Operating result divided into segments Segments Data Center Aviation infrastructure BMS and building technologies IT systems for public sector Multimedia exhibitions Management and service of computer systems IT systems for public sector Other segments and other income Costs of general administration Profit (loss) in operations *negative result in a segment IT systems for public sector was influenced by creating a revaluation write-down amounting to PLN 18 million for costs borne with regard to a realization of e-dolnyslask platform by Urząd Marszałkowski Województwa Dolnośląskiego, included in Ongoing production. In 2014 none of the recipients or suppliers exceeded the level of 10% of total trade of the Company. The Company conducts its operations mainly in Poland. Export sales are currently occasional and do not have a significant share in sales and results of the Company. Table: Income from sales geographical structure Period from Period from Income from sales of products, including: - - Domestic sales - - Export sales - - Income from sales of services, including:

14 Domestic sales Export sales - - Income from sales of goods, including: Domestic sales Export sales

15 10. Explanatory notes to consolidated financial statements 1. Costs of operations Costs of operations in the period covered in these consolidated financial statements are the following: Period of Period of Depreciation, including: Depreciation of tangible fixed 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 of products Costs of manufacturing products for own needs - - Total costs of operations Costs of sale General administration costs Own cost of sales Costs of employees benefits Period of Period of 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 Period from Period from Average number of employees, by professional groups: Office staff Administration 4 3 Salesmen Engineers Consultants Service Programmers Other revenue and costs of operations Other revenue in operations 15

16 Income from sale of assets: Period from Period from Income from sale of tangible and intangible fixed assets Income from liquidation of tangible and intangible fixed assets - - Dissolution of write-downs: Inventory 49 - Trade receivables and other Other Other revenue in operations: Grants - - Reserves dissolution - - Received penalties and compensations Other Other revenue in operations in total Other costs of operations Period from Period from Losses from sale of assets: - - Losses from sale of tangible and intangible fixed assets - - Losses from liquidation of tangible and intangible fixed assets - 23 Creating write-downs: - 23 Inventory Trade receivables and other Other Other costs of operations: Creation of reserves Paid penalties and compensations Membership fees - 68 Other Other costs of operations in total Financial revenue Period of Period of Interest revenue: Bank accounts and deposits Investments for sale - - Loans and receivables - - Financial assets, which are impaired Discount Profits from valuation of financial assets and liabilities: Profits from valuation of financial assets valued in fair value by profits account

17 - 62 Other financial revenue Profit from exchange rates differences - - Received dividends - - Other - - Financial revenue in total Investment revenue from financial assets by categories of assets: Period from Period from Financial assets available for sale - - Loans and receivables - 62 Financial assets valued in fair value by profits account Other (covering cash and bank deposits) Financial costs Interest costs: Period from Period from Interest from loans, credits and debt instruments Interest from trade liabilities and other 5 16 Interest from liabilities valued in fair value - - Interest from other financial liabilities - 1 Discount costs Interest costs in total Losses from valuation of financial assets and liabilities: Losses from valuation 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 Period from Period from Current income tax: Current tax burden Corrections shown in current year with regard to tax from previous years Deferred income tax

18 Cost/(income) tax in total Differences between face and effective tax rate are the following Period from Period from 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 - - 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 business 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. Current assets/ (liabilities) for income tax As of As of Due tax return - - Income tax to be paid Other Deferred income tax Deferred tax in periods covered by these separate financial statements is the following: Deferred tax as of 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 As of 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

19 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 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 As of 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 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 As of the end of the period

20 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 Discontinued activity and assets available for sale In the period covered by consolidated financial statements there were no discontinued operations. Simultaneously, the Group does not consider the occurrence of such sort of operations in future as well as any limitation to operations currently conducted. The Group also does not have significant assets available for sale. 7. Profit per one share Profit per one share was calculated on the basis of the following elements: Period from Period from Profit for financial year for shareholders of parent company (in PLN) Profit used for calculation of basic and diluted profit per one share (in PLN) Weighted average number of ordinary shares used for calculation of profit per one share Profit per one share (PLN) - 0,36 0,69 Weighted average number of ordinary shares used for calculating basic profit per one share Shares planned to be issued without receiving payments: Employees options - - Partially paid ordinary shares - - Short-term changeable securities - - Other [description]

21 Weighted average number of ordinary shares used for calculating diluted profit per one share Diluted profit per share (PLN) Value of paid by Qumak S.A. dividend per one share Intangible assets As of As of As of Development activities Other licenses (computer software) Intangible assets under construction Total Change in intangible assets 2013 Computer licenses and software WNiP during production Gross value As of 1 January Increases Purchases Taking up Decreases Sale Liquidation As of 31 December Total Amortization As of 1 January Increases Depreciation Impairment Decreases Sale Liquidation As of 31 December Net value as of 1 January Net value as of 31 December including: Under construction 2014 Computer licenses and software WNiP during production Total Gross value As of 1 January Increases Purchases Taking up Decreases

22 Sale Liquidation As of 31 December Amortization As of 1 January Increases Depreciation Impairment Decreases - - Sale Liquidation As of 31 December Net value as of 1 January Net value as of 31 December including: Under construction Intangible assets in total are owned by the Group and are not subject to collateral for any of the Group s liabilities. Within the period from 1 January 2014 to 31 December 2014 there were no substantial purchase and sale/liquidation concerning intangible and legal assets. In 2014 the Company apart from costs for recovering and increasing fixed assets, launched a project aiming at developing own solution for content management, so-called CMS Content Management System and combining it with a solution to manage business processes - BPM (Business Process Management). This solution in its target version can be used everywhere where there is a necessity to create and manage any database, simultaneously optimizing course of business processes in organizations. At the end of 2014 the engagement in this project amounted to PLN thousands. 9. Tangible fixed assets As of As of As of Lands Buildings and building structures Machines and equipment Transport means Other fixed assets Fixed assets under construction including: including: Covered by collaterals for financial liabilities - - Change of fixed assets 2013 Buildings and building structures Machines and equipment Transport means Other fixed assets Fixed assets under construction Gross value As of 1 January Increases Total 22

23 Purchases Taking up Decreases Sale Liquidation As of 31 December Amortization As of 1 January Increases Depreciation Impairment Decreases Sale Liquidation As of 31 December Net value as of 1 January Net value as of 31 December Buildings and building structures Machines and equipment Transport means Other fixed assets Fixed assets under construction Gross value As of 1 January Increases Purchases Taking up Decreases Sale Prepayments Other As of 31 December Amortization As of 1 January Increases Depreciation Impairment Decreases Sale Liquidation As of 31 December Net value as of 1 January Net value as of 31 December Total Investment expenses in the presented period were related to a successive exchange of IT infrastructure and car fleet. Other expenses regarded only recovering used fixed assets. Increase of means for fixed assets under construction regarded a project of locomotive simulator on the basis of a Project Demonstrator+. Within the frames of signed agreements Qumak launched and continues a project co-funded by means of the National Center for Research and Development, which aims at developing the first product under the brand Qumak a locomotive simulator. It enables providing trainings of train drivers in safe conditions and creating models of behavior in situations of crisis. This project is performed under a consortium (IKKU Sp. z o.o., Railway Institute, 23

24 Military University of Technology) and its aim is to build and launching a demonstrator of technologies with the purpose of commercializing it. During the performing of the project, there was appointed in the Company an internal dedicated competence team, the task of which will be to develop projects within the area of simulators for commercial purposes, and in future probably also for the needs of a military. At the end of 2014 engagement in this project amounted to PLN thousands. Total cost of the project s performance is PLN 13,090, In the agreement the Center is obliged to grant funds for the realization of the project in the amount of PLN 8,241, Inventory As of As of As of Materials and raw materials Ongoing production Ready products Goods Gross inventory in total (-) revaluation write-downs Net inventory in total including: Covered by collaterals for external funding In ongoing production as of the amount of PLN thousands represents means for EDŚ, for which there was created a revaluation write-down in the amount of PLN thousands. The value of created write-down is based on estimates of the company and is burdened with uncertainty with regard to the ongoing case. Change in inventory revaluation write-downs Period from Period from Opening balance of write-downs Creating write-downs Decreases of write-downs, including: Release of write-downs Use of write-downs - - Closing balance Trade receivables and other receivables As of As of As of Gross trade receivables (-) revaluation write-downs Net trade receivables Other gross receivables, including: Receivables for VAT Receivables for other taxes

25 Other receivables (-) revaluation write-downs Other receivables net Other gross receivables, including: Net trade receivables and other in total including: Long-term Short-term To majority of sale transactions the Group applies a term of payment of 30 days. Long-term receivables cover trade receivables for sale of goods and receivables for delivered warranty deposits related with performing long-term contracts. These receivables were valued including discount. Fair value of receivables does not differ significantly from balance value. Changes in revaluation write-downs of trade receivables and other were the following: Period from Period from Opening balance of revaluation write-downs Creating revaluation write-downs Decreases of write-downs, including: Release of write-downs Use of write-downs Revaluation write-downs in total including: Long-term receivables -6-6 Short-term receivables Age analysis of trade receivables and other As of As of As of Gross trade receivables Other receivables (excluding receivables for taxes) (-) revaluation write-downs As of As of As of Non-impaired receivables, not overdue, payable within the period: Up to 1 month months months months >12 months Non-impaired receivables, overdue within a period: Up to 1 month months months months

26 >12 months Impaired receivables: Not overdue Overdue within a period: Up to 1 month months months months >12 months (-)revaluation write-downs Net financial receivables in total including: Long-term receivables Short-term receivables including short-term receivables, covering: Trade receivables Other receivables (without taxes) Assets for unfinished contracts As of As of As of Revenue and costs for contracts (long-term contracts) included in the reporting period Revenue for contracts included from balance day, including: Estimated to positive value Corrected to negative value Costs of contracts included from balance day Margin Realized: Revenue from contracts Costs from contracts Margin Margin for evaluation of contracts included in the reporting period As of As of As of Assets for unfinished contracts included in assets The Company did not receive any advance payments for performer contracts 13. Other non-financial assets As of As of As of Accruals, including: Insurances costs Other costs Made advance payments, including: For purchase of materials and goods

27 For purchase of tangible fixed assets For purchase of intangible assets including: Long-term Short-term Cash means and cash equivalents To prepare the cash flows account, cash means and cash equivalents include cash presented below in detail. As of As of As of Cash means Cash means on bank accounts, including: Current accounts in PLN Currency bank accounts Bank deposits account Included those of limited disposal Share capital Series /issue Type of share Number of shares Value of series/ issue by face value Capital coverage method Registration day Right to dividend (from the day) A bearer contribution B bearer cash C bearer cash D bearer cash E bearer cash F bearer cash H bearer cash PP01 bearer cash PZ01 bearer cash I bearer cash J bearer cash K bearer cash K bearer cash K bearer cash Number of shares in total Share capital, in total Face value per one share = PLN 1 Share capital of the parent entity as of 31 December 2014 amounted to PLN 10,375, and was comprising of ordinary shares of a face value of PLN No shares issued by the parent entity are preference shares. 27

28 Shareholders as of Shareholder Number of held shares Share in share capital Number of shares Share in total number of votes on GM Legg Mason TFI including: Legg Mason Parasol FIO % 8.13% % 8.13% OFE PZU Złota Jesień % % PTE Allianz Polska S.A % % Aviva Powszechne Towarzystwo Emerytalne Aviva BZ WBK SA % % QUERCUS TFI S.A % % The above table was prepared on the basis of information on settlement of tax on dividend (as of 15 September 2014). 16. Supplementary capital As of As of As of Capital created compulsory Capital from excess of issue price over face value Capital left by shareholders decision In accordance with the law, subject of which is a parent company, the Company as a joint stock company is obliged to allocate for supplementary capital at least 8% of net profit from a given year to the time the supplementary capital reaches 1/3 of share capital value. Supplementary capital in the amount of 1/3 of share capital value can be used only to cover loss and is a capital compulsory created. 17. Other capitals Other capitals cover capital made from including profits from evaluation of assets available for sale. For the amounts included in this item per particular balance days there are the following items: As of As of As of Other capitals evaluation of financial assets available for sale Other capitals deferred tax concerning evaluation of financial assets available for sale

29 18. Retained profit As of As of As of Effect of implementing IFRS Undistributed results from previous years Loans, debt instruments and bank credits As of As of As of Received bank credits Received loans Liability for factoring including: Long-term Short-term Balance value of credits and loans is similar to their fair value because provisions concerning interest in agreements are based on variable interest rate. Detailed information concerning liabilities for credits and loans is presented below: 29

30 Liabilities for bank credits and loans as of 31 December 2014: Creditor Amount of credit Currency of credit Maturity Long-term Short-term Interest Collaterals IBM - Loans PLN 12 months % Without collateral De Lage Landen Leasing Polska 972 PLN Promissory note S.A. - loan Raffeisen Polbank - factoring PLN 120 days WIBOR1M+1.25 Power of attorney to current account and other accounts of the Company in the Bank, deposit of cash means paid by the Company on bank account amounting to at least 20% of amount of Warranty when granted warranty period within this limit is longer than 60 months (in case when the warranty period is shorter, deposit is not required). Moreover, the Company made a statement of acceptance of enforcement to the total amount of current debt with interest and other costs, however to the amount not exceeding PLN 45,000,000 within the scope of any receivables resulting from transactions realized on the basis of the Agreement. Promissory note. BNP-Paribas - factoring PLN 90 days WIBOR1M+1.30 Promissory note, power of attorney to account in BNP Paribas in addition 0.14% of gross amount adopted to finance receivables TOTAL Liabilities for bank credits and loans as of 31 December 2013: Creditor Amount of credit Currency of credit Maturity Long-term Short-term Interest Collaterals IBM - loans PLN 12 months Without collateral Liabilities for bank credits and loans as of 1 January 2013: Creditor Amount of credit Currency of credit Maturity Long-term Short-term Interest Collaterals IBM - loans PLN 12 months Without collateral Fortis USD open-end credit USD LIBOR3M+1 Promissory note 30