QUARTERLY REPORT FOR THE 3 RD QUARTER 2018 OF DEKPOL CAPITAL GROUP

Transcription

1 QUARTERLY REPORT FOR THE 3 RD QUARTER 2018 OF DEKPOL CAPITAL GROUP Pinczyn, 28 th of November

2 TABLE OF CONTENTS 1. CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Selected consolidated financial data Condensed interim consolidated statement of comprehensive income Condensed interim consolidated statement of financial position Condensed interim consolidated cash flow statement Condensed interim statement in changes in consolidated equity Additional information to condensed interim consolidated financial statement Preparation rules of interim condensed separate financial statement Operating segments Costs of major operating activities Other operating revenues Other operating costs Financial revenues Financial expenses Income tax Inventories Trade receivables and other receivables Financial instruments Trade liabilities and other liabilities Condensed interim separate financial statement Selected separate financial data Condensed interim separate statement of comprehensive income Condensed interim separate statement of financial position Condensed interim cash flow statement Condensed interim separate statement of changes in equity Additional information to condensed interim separate financial statement Rules for preparing an interim condensed separate financial statement Additional information to Extended consolidated Report for 3 rd quarter 2018 OF DEKPOL Capital group Information about DEKPOL capital group Business activities Structure of DEKPOL Capital group

3 3.1.3 CHANGES IN THE STRUCTURE OF DEKPOL CAPITAL GROUP IN THE 3 rd QUARTER OF 2018 AND AFTER THE BALANCE SHEET Date General information about the parent entity Dekpol S.a Company bodies Share capital structure Shareholding structure of the Company Ownership of shares by persons performing managerial and supervisory functions Information on operations of dekpol capital group SUMMARY OF THE ACTIVITIES OF THE DEKPOL CAPITAL GROUP IN THE 3 rd QUARTER OF SIGNIFICANT EVENTS IN THE ACTIVITIES OF THE DEKPOL CAPITAL GROUP IN THE III QUARTER OF Factors and events, including of untypical nature, impacting substantially condensed consolidated financial statement Events after balance sheet date Transactions with affiliates Sureties and guarantees received and granted STANDPOINT OF MANAGEMENT BOARD REGARDING THE POSSIBILITY OF ACHIEVING PROJECTED RESULTS FACTORS WHICH MAY AFFECT ACHIEVED RESULTS IN PERSPECTIVE OF AT LEAST NEXT QUARTER Proceedings before a court, arbitration body or public administration authority Other significant information necessary for evaluation of DEKPOL capital group s position Indicators Contact

4 1. CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS 1.1 SELECTED CONSOLIDATED FINANCIAL DATA Specification I. Net revenue from sales of products, goods, and materials thounsand PLN thounsand PLN thounsand EUR thounsand EUR II. Profit (loss) on operating activity III. Profit (loss) before tax IV. Net profit (loss) V. Earnings (loss) per ordinary share (in PLN / EUR) VI. Net cash flows from operating activity VII. Net cash flows from investment activity VIII. Net cash flows from financial activity 2,65 2,93 0,62 0, IX. Total net cash flows Wyszczególnienie thounsand PLN thounsand PLN thounsand EUR thounsand EUR X. Total assets XI. Liabilities and provisions for liabilities XII. Long-term liabilities XIII. Short-term liabilities XIV. Equity XV. Share capital XVI. Number of shares at the end of the period XVII. Book value per share (in PLN / EUR)

5 Individual items of Condensed Interim Consolidated Statement of Financial Position, which have been presented in EUR currency, have been converted based on the average exchange rate set by the Polish National Bank for the day at 4,2714 PLN/EUR and for the day at 4,1709 PLN/EUR. Individual items of Condensed Interim Consolidated Financial Statement of Comprehensive Income and Condensed Interim Consolidated Cash Flow Statement have been converted into EUR based the arithmetic average of average exchange rates for EUR set by the Polish National Bank on the last day of each month of given period at 4,2535 PLN/EUR, and at 4,2566 PLN/EUR. 5

6 1.2 CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Item Note Sales revenues Costs of goods sold Gross profit (loss) from sales Selling costs General administrative expenses Other operating revenues Other operating costs Profit (loss) from operating activities Financial revenues Financial expenses Share in profit (loss) in entities priced by ownership value menthod Profit (loss) before tax Income tax Profit (loss) from continued operations Net profit (loss) Other net comprehensive income Comprehensive income falling to non-controlling shareholders Comprehensive income falling to shareholders of parent entity

7 1.3 CONDENSED INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION Item Note Fixed assets Property, plant and equipment Intangible assets Goodwill 0 0 Investment properties Stocks and shares Receivables Other long-term financial assets Long-term deferred charges 0 0 Deferred income tax assets Current assets Inventory Receivables due to contracts with clients Trade receivables and other receivables Other short-term financial assets 0 0 Short-term deferred charges Cash and cash equivalent including cash on escrow accounts Assets classified as held for sale 0 0 Assets in total

8 Item Note Equity Basic capital Equity from sales of shares over its nominal value Other equities Own shares (-) 0 0 Exchange differences on conversion Profits saved: Equity falling to shareholders of parent entity Non-controlling shares 1 1 Long-term liabilities Deferred income tax provision Liabilities and provisions on employee benefits Other long-term provisions 0 0 Long-term credits, borrowings and debt instruments Other long-term financial liabilities Other long-term liabilities Short-term liabilities Liabilities and provisions on employee benefits 4 4 Other short-term provisions Short-term credits, borrowings and debt instruments Other short-term financial liabilities Liabilities due to contracts with clients Trade liabilities and other liabilities Receivables from future terms Liabilities connected to assets intended for sale 0 0 Liabilities in total

9 1.4 CONDENSED INTERIM CONSOLIDATED CASH FLOW STATEMENT Item Profit (loss) before tax Adjustments: Depreciation Change of fair value of investment properties 0 0 Profit (loss) from sales of non-financial tangible assets Profit (loss) on the sale of financial assets (other than derivatives) Profits (losses) from foreign exchange differences 0 0 Interests and shares in profits Other adjustments 0 0 Change of working capital Changes in stocks Changes in receivables Changes in liabilities Changes of provisions and deferred charges Other adjustments 14 0 Income tax from profit before taxation Income tax paid Net cash from operating activities Expenses related to acquisition of intangible assets Inflows from sales of intangible assets 0 0 Expenses related to acquisition of property, plant and equipment Inflows from sales of property, plant and equipment Expenses related to acquisition of investment properties 0 0 Inflows from sales of investment properties 0 0 Net expenses for the acquisition of subsidiaries Repayments received from loans granted 0 0 Loans granted 0 0 Expenses related to acquisition of other financial assets Inflows from sales of other financial assets 0 0 Net cash from investment activities Net inflows from issue of shares 0 0 Acquisition of own shares 0 0 Inflows from issue of debt securities

10 Redemption of debt securities Inflows from loans and borrowings taken out Repayment of loans and borrowings Repayment of liabilities under finance lease Interest paid Dividends paid Inflows from received grants 0 0 Other inflows (expenses) from investment activities 0 0 Net cash from investment activities Change in net cash and cash equivalents without foreign exchange differences Change in cash and cash equivalents due to foreign exchange differences Change in net cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period Including cash of limited disposal right

11 1.5 CONDENSED INTERIM STATEMENT IN CHANGES IN CONSOLIDATED EQUITY For period Item Common equity Equity from sale of shares over its nominal value Reserve capital from retained earnings Other equities Not divided retained earnings The capital of noncontrolling shareholders Exchange differences on the conversion of subordinated entities Balance as at beginning of period Error correction of previous years Balance at the beginning of period after changes Issue of shares Dividends Transfer of financial result to capital Transactions with owners in total Other total comprehensive income Net profit (loss) Comprehensive income Balance at the end of period Total 11

12 For period Item Common equity Equity from sale of shares over its nominal value Reserve capital from retained earnings Other equities Not divided retained earnings The capital of noncontrolling shareholders Exchange differences on the conversion of subordinated entities Balance as at beginning of period Error correction of previous years Balance at the beginning of period after changes Issue of shares Dividends Transfer of financial result to capital Transactions with owners in total Other total comprehensive income Net profit (loss) Comprehensive income Balance at the end of period Total 12

13 1.6 ADDITIONAL INFORMATION TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENT PREPARATION RULES OF INTERIM CONDENSED SEPARATE FINANCIAL STATEMENT Interim condensed financial statement of the Dekpol Capital Group for 3 and 9 months ended 30 th of September 2018 has been prepared in accordance with International Accounting Standards and International Financial Reporting Standards and related interpretations announced in the form of regulations of European Commission (hereinafter referred to as IFRS). Interim condensed financial statement of the Dekpol Capital Group for 3 and 9 months ended 30 th of September 2018 has been prepared under assumption of continuation of business by the Company in the foreseeable future. Statement presents financial position of Dekpol Capital Group as of 30 th of September 2018 and 31 st of December 2017, results achieved with the Group s operations and cash flow for the period of 3 and 9 months ended 30 th of September 2018 and 30 th of September The accounting principles (policies) used to prepare the interim condensed consolidated financial statement are consistent with those applied to the preparation of the interim consolidated financial statements of the Group for the first half of Other new or changed standards and interpretations do not have a significant impact on the interim condensed consolidated financial statements of the Group for the nine months ended 30 th of September The Management Board of the Company has decided to change the Group's accounting policy regarding the recognition of cash held on escrow accounts, which are supervised by banks and are subject to release as the property development works progress. So far, the Group has not disclosed these cash and related advance payments from customers in the statement of financial position, being guided by limitations in exercising control over this asset. Considering the common market practice, according to which funds on escrow accounts are recognized in the statement of financial position and statement of cash flows and IFRS 15 regarding disclosure of obligations under concluded contracts with customers, it was decided to change the accounting policy and disclose cash for escrow accounts as assets - restricted cash in correspondence with advance 13

14 payments from Customers presented in liabilities. Comparability of data for comparative periods was ensured. The changes in comparative data resulting from the change in accounting policy with respect to previously published financial statements were presented in the interim condensed financial statements of the Dekpol Capital Group and the interim condensed separate financial statements of Dekpol SA. The change in the accounting policy does not affect the value of the financial result and equity. 14

15 Correction of published reports Consolidated financial statement Assets Item published corrections after correction Fixed assets Property, plant and equipment Intangible assets 195 Goodwill 0 Investment properties Stocks and shares 0 Receivables Other long-term financial assets Long-term deferred charges 0 Deferred income tax assets Current assets Inventory Receivables due to contracts with clients 91 Trade receivables and other receivables Other short-term financial assets 0 Shares In Open Investment Funds 0 Short-term deferred charges Cash and cash equivalent including cash on escrow accounts Assets classified as held for sale 0 Assets in total

16 Consolidated financial statement - Liabilities Item published Equity Basic capital Equity from sales of shares over its nominal value Other equities Own shares (-) 0 Exchange differences on conversion -17 Retained earnings: Equity falling to shareholders of parent entity Non-controlling shares 1 Long-term liabilities Deferred income tax provision Liabilities and provisions on employee benefits 59 Other long-term provisions 0 Long-term credits, borrowings and debt instruments Other long-term financial liabilities Other long-term liabilities corrections after correction Short-term liabilities Liabilities and provisions on employee benefits 4 Other short-term provisions Short-term credits, borrowings and debt instruments Other short-term financial liabilities Liabilities due to contracts with clients 183 Trade liabilities and other liabilities Receivables from future terms Liabilities connected to assets intended for sale 0 Liabilities in total

17 Consolidated financial statement Cash flow statement Item Data Publisher on Profit (loss) before tax Adjustments: Depreciation Change of fair value of investment properties Profit (loss) from sales of non-financial tangible assets Profit (loss) from sales of financial assets (other than derivatives) Profits (losses) from foreign exchange differences Interests and shares in profits Other corrections corrections after correction Change in working capital Change in inventory Change in receivables Change in liabilities Change in provisions and accruals Other corrections 0 Income tax from profit before taxation Income tax paid Net cash from operating activities Expenses related to acquisition of intangible assets -327 Inflows from sales of intangible assets 0 Expenses related to acquisition of property, plant and equipment Inflows from sales of property, plant and equipment Expenses related to acquisition of investment properties Inflows from sales of investment properties 0 Repayments received from loans granted 0 Loans granted 0 0 Expenses related to acquisition of other financial assets Inflows from sales of other financial assets 0 Net cash from investment activities

18 Net inflows from issue of shares 0 Aquisiton of own shares 0 Inflows from issue of debt securities Redemption of debt securities Inflows from loans and borrowings taken out Repayment of loans and borrowings Repayment of liabilities under finance lease Interest paid Dividends paid 0 Inflows from grants received 0 Other inflows (expenses) from financial activities Net cash from financial activities Change in net cash and cash equivalents without exchange differences Change in cash and cash equivalents due to exchange differences Net change in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period Including cash of limited disposal right OPERATING SEGMENTS Revenues, result and other in the reporting period Item Sales revenues in total Revenues from external clients Operating expenses in total Other operating revenues Other operating expenses General contracting Property development Production of steel structures and accessories Other Exclusions Total Operating result Financial revenues

19 Financial expenses Income tax Net result Revenues, result and other in previous reporting period Item Sales revenues in total Revenues from external clients Operating expenses in total Other operating revenues Other operating expenses General contracting Property development Production of steel structures and accessories Other Exclusions Total Operating result Financial revenues Financial expenses Income tax Net result COSTS OF MAJOR OPERATING ACTIVITIES Item Costs by type Depreciation Consumption of materials and energy Outsourced services Taxes and fees Remunerations Employee benefits Other costs by type Cost of goods and materials sold Movements in the balance of products Own work capitalized Selling costs General administrative expenses

20 Own selling cost OTHER OPERATING REVENUES Item Profit on disposal of non-financial fixed assets Re-invoicing 0 0 Pricing of investment properties to fair value 0 0 Release of provisions 0 0 Penalties and compensations Grants Expired liabilities 0 0 Scrap yield 0 0 Bonus from turnover 0 0 inventory surpluses 0 0 Other titles Impairment losses on inventories reversal in period (-) 0 33 Impairment losses on receivables reversal in period (-) Other operating revenues OTHER OPERATING COSTS Item Loss on disposal of non-financial fixed assets 0 0 Pricing of investment properties to fair value 0 0 Creation of reserves 0 0 Costs related to acquisition of subsidiaries 0 0 Costs of gap s removal and scrapping Donations Bonus from turnover 0 0 Inventory deficits 0 0 Write-downs 0 0 Contractual penalties 0 0 Other titles Damages to properties Court fees

21 Re-invoicing costs 0 0 Compensations Impairment losses on inventories creation in the period Impairment losses on receivables creation in the period Other operating costs FINANCIAL REVENUES Item Interests Surplus of positive exchange differences over the negative ones 0 17 Reversal of write-offs 0 0 Profit from sale of financial assets 0 0 Dividends 1 0 Other financial revenues 0 0 Financial revenues FINANCIAL EXPENSES Item Interests Surplus of negative exchange differences over the positive ones Loss from sale of financial assets 0 0 Write-offs 0 0 Other financial expenses 0 0 Financial expenses INCOME TAX Item Current income tax Current income tax for reporting period Current income tax for previous periods covered in financial result 0 0 Deferred income tax Deferred tax creation and reversal of temporary

22 differences (+) Deferred income tax settlement of unused tax losses Deferred tax creation and reversal of temporary differences (-) Income tax INVENTORIES Item Materials balance value Goods balance value Semi-finished products and work in progress balance value Finished products balance value Premises under construction balance value Finished premises balance value Inventories TRADE RECEIVABLES AND OTHER RECEIVABLES item Net receivables due to contracts with clients Trade receivables before revaluation write-off Write-offs at the end of the period (-) Current tax income Receivables from dividends - short-term 0 0 Receivables on account of other taxes, customs duties and social insurance Deposits due to valuation of construction agreements balance value Write-offs at the end of the period (-) Deposits due to valuation of construction agreements before revaluation write-off Deposits from other titles 0 0 Receivables and advance payments balance value Write-offs at the end of the period (-) Receivables and advance payments before revaluation write-off Other receivables balance value Write-offs at the end of the period (-) 0 0 Other receivables value before revaluation write-off

23 Trade receivables and other receivables FINANCIAL INSTRUMENTS Financial instruments assets Item Stocks and shares in affiliates and jointly controlled entities Receivables valued in nominal value Trade receivables and other receivables Receivables from dividends - short-term 0 0 Loans and receivables Stocks and shares in subsidiaries 0 0 Financial assets evaluated at fair value through financial result 0 0 Cash and cash equivalents Financial assets available for sale 0 0 Financial assets held to maturity 0 0 Financial assets Financial instruments liabilities Item Liabilities evaluated at fair value through financial result 0 0 Liabilities evaluated at nominal value Liabilities evaluated at depreciated cost Financial liabilities Loans and borrowings Loans and borrowings as of Long-term Loan mbank10/033/18/z/ob Loan SGB- Bank.OBRKK/12/2017/63280 Loans and borrowings total long-term Short-term Loan ING 891/2017/ /00 Loan value Balance Currency PLN PLN Interest rate WIBOR 1M + margin WIBOR 3M + margin Date of repayment PLN WIBOR 1M + margin

24 Loan mbank 10/032/18/Z/OB Loan Santander K01263/ PLN PLN WIBOR 1M + margin WIBOR 1M + margin Borrowing PLN Fixed rate Loan BGŻ BNP PARIBAS WIBOR 3M PLN WAR/4100/15/348/CB margin Loan BGŻ BNP PARIBAS WIBOR 3M PLN WAR/4100/15/348/CB margin WIBOR O/N PLN Loan mbank.10/020/17/z/vv margin Loan SGB-Bank WIBOR 3M PLN OBRKK/6/2018/72360 margin Loan BS Wschowa WIBOR 1M PLN 164/IWS/2018 margin other 677 Loans and borrowings total short-term Loans and borrowings as of Long-term Loan mbank 10/020/17/Z/VV Loan SGB-Bank OBRKK/12/2017/63280 Loans and borrowings total long-term Short-term Loan Millennium 10536/17/475/04 Loan ING 891/2017/ /00 Loan value Balance Currency PLN Interest rate WIBOR O/N+ margin Date of repayment PLN WIBOR 3M + margin PLN WIBOR 3M + margin PLN WIBOR 3M + margin Loan Santander K01263/ PLN WIBOR 1M + margin Borrowing PLN Fixed rate Loan BGŻ BNP PARIBAS WAR/4100/15/348/CB PLN WIBOR 3M + margin Loan BGŻ BNP PARIBAS WAR/4100/15/348/CB PLN WIBOR 3M + margin other Loans and borrowings total short-term 24

25 Bonds nominal value Bonds as of the end of reporting period Long-term Value Balance Currency Interest rate Date of repayment Bonds series DA PLN WIBOR 6M+ margin Bonds series DB PLN WIBOR 6M+ margin Bonds series F PLN WIBOR 3M + margin Bonds series F PLN WIBOR 3M + margin Bonds series F PLN WIBOR 3M + margin Bonds series G PLN WIBOR 6M+ margin Bonds series H PLN WIBOR 6M+ margin Bonds total long-term Short-term 0 0 PLN - - Bonds total short-term Bonds as of the end of reporting period Long-term Value Balance Currency Interest rate Date of repayment Bonds series DA PLN WIBOR 6M+ margin Bonds series DB PLN WIBOR 6M+ margin Bonds total long-term Short-term Bonds series D PLN WIBOR 3M + margin Bonds total short-term TRADE LIABILITIES AND OTHER LIABILITIES Item Trade liabilities Liabilities due to remunerations Liabilities due to current income tax Liabilities due to other taxes, duties and social securities Short-term received bails Prepayments and deposits received for supplies Other short-term liabilities Trade and other liabilities

26 2. CONDENSED INTERIM SEPARATE FINANCIAL STATEMENT 2.1 SELECTED SEPARATE FINANCIAL DATA Item thousand of PLN thousand of PLN thousand of EUR thousand of EUR I. Net revenue from sales of products, goods, and materials II. Profit (loss) on operating activity III. Profit (loss) before tax IV. Net profit (loss) V. Earnings (loss) per ordinary share (in PLN / EUR) VI. Net cash flows from operating activity VII. Net cash flows from investment activity VIII. Net cash flows from financial activity 1,93 1,91 0,45 0, IX. Total net cash flows Wyszczególnienie thousand of PLN thousand of PLN thousand of EUR thousand of EUR X. Total assets XI. Liabilities and provisions for liabilities XII. Long-term liabilities XIII. Short-term liabilities XIV. Equity XV. Share capital XVI. Number of shares at the end of the period XVII. Book value per share (in PLN / EUR)

27 Individual items of Condensed Interim Separate Statement of Financial Position, which have been presented in EUR currency, have been converted based on the average exchange rate set by the Polish National Bank for the day at 4,2714 PLN/EUR and for the day at 4,1709 PLN/EUR. Individual items of Condensed Interim Separate Financial Statement of Comprehensive Income and Condensed Interim Separate Cash Flow Statement have been converted into EUR based the arithmetic average of average exchange rates for EUR set by the Polish National Bank on the last day of each month of given period at 4,2535 PLN/EUR, and at 4,2566 PLN/EUR. 2.2 CONDENSED INTERIM SEPARATE STATEMENT OF COMPREHENSIVE INCOME Item Sales revenues Costs of goods sold Gross profit (loss) from sales Selling costs General administrative expenses Other operating revenues Other operating costs Profit (loss) from operating activities Share in profit (loss) in entities priced by ownership value method Financial revenues Financial expenses Profit (loss) before tax Income tax Profit (loss) from continued operations Net profit (loss) Exchange differences on the conversion of foreign operations Other net comprehensive income Comprehensive income

28 2.3 CONDENSED INTERIM SEPARATE STATEMENT OF FINANCIAL POSITION Item Fixed assets Property, plant and equipment Investment properties Intangible assets Stocks and shares Receivables Other long-term financial assets Long-term deferred charges 0 0 Assets due to deferred income tax Current assets Inventory Receivables due to contracts with clients Trade receivables and other receivables Other short-term financial assets Shared In Open Investment Funds 0 0 Short-term deferred charges Cash and cash equivalent Including cash on escrow accounts Assets classified as held for sale 0 0 Assets in total

29 item Equity Share capical Equity from sales of shares over its nominal value Other equities Own shares (-) 0 0 Profit (loss) from previous years Current result Long-term liabilities Deferred income tax provision Liabilities and provisions on employee benefits Other long-term provisions 0 0 Long-term credits, borrowings and debt instruments Other long-term financial liabilities Other long-term liabilities Short-term liabilities Liabilities and provisions on employee benefits 4 4 Other short-term provisions Short-term credits, borrowings and debt instruments Other short-term liabilities Liabilities due to contracts with clients 0 0 Trade liabilities and other liabilities Receivables from future terms Liabilities connected to assets intended for sale 0 0 Liabilities in total

30 2.4 CONDENSED INTERIM CASH FLOW STATEMENT item Profit (loss) before tax Adjustments: Depreciation Change of fair value of investment properties 0 0 Profit (loss) from sales of non-financial tangible assets Profit (loss) from sales of financial assets (other than derivatives) Profits (losses) from foreign exchange differences 0 0 Interests and shares in profits Change of working capital Income tax from profit before taxation Income tax paid Net cash from operating activities Expenses related to acquisition of intangible assets Inflows from sales of intangible assets 0 0 Expenses related to acquisition of property, plant and equipment Inflows from sales of property, plant and equipment Expenses related to acquisition of investment properties 0 0 Inflows from sales of investment properties 0 0 Net inflows from sales of subsidiaries 0 0 Net expenses relate to acquisition of subsidiaries Repayments received from loans granted 0-45 Expenses related to acquisition of other financial assets Inflows from sales of other financial assets 0 4 Loans granted Interest received 40 0 Dividends received Net cash from investment activities Net inflows from issue of shares 0 0 Inflows from issue of debt securities Other inflows (expenses) from financial activities 0 0 Inflows from received grants 0 0 Redemption of debt securities Inflows from loans and borrowings taken out

31 Repayment of loans and borrowings Repayment of liabilities under finance lease Interest paid Dividends paid Net cash from financial activities Change in net cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period Including cash of limited disposal right

32 2.5 CONDENSED INTERIM SEPARATE STATEMENT OF CHANGES IN EQUITY Data for period Item Balance at the beginning of the period Share capital Capital from the sale of shares above their nominal value Reserve capital from retained earnings Other capitals Unallocated retained earnings The capital of noncontrolling shareholders Exchange differences on the conversion of subordinated entities Error corrections of previous years Issue of shares Transfer of financial result to capital Dividends Total transactions with the owners Other total net income Net profit (loss) Total income Balance at the end of the period Total 32

33 Data for period Item Balance at the beginning of the period Share capital Capital from the sale of shares above their nominal value Reserve capital from retained earnings Other capitals Unallocated retained earnings The capital of noncontrolling shareholders Exchange differences on the conversion of subordinated entities Error corrections of previous years Issue of shares Transfer of financial result to capital Dividends Total transactions with the owners Other total net income Net profit (loss) Total income Balance at the end of the period Total 33

34 2.6 ADDITIONAL INFORMATION TO CONDENSED INTERIM SEPARATE FINANCIAL STATEMENT RULES FOR PREPARING AN INTERIM CONDENSED SEPARATE FINANCIAL STATEMENT Interim condensed separate financial statement of Dekpol S.A. for the period of 3 and 9 months ended 30 th of September 2018 was prepared in accordance with International Accounting Standards and International Financial Reporting Standards and related interpretations announced in the form of European Commission regulations (hereinafter referred to as IFRS). Interim condensed separate financial statement of Dekpol S.A. for the period 3 and 9 months ended 30 th of September 2018 was prepared assuming that the Company would continue as a going concern in the foreseeable future. The report presents the financial situation of Dekpol S.A. as at 30 th of September 2018 and 31 st of December 2017, the results achieved on the operations of the Company and cash flows for the periods of 3 and 9 months ended 30 th of September 2018 and 30 th of September 2017, respectively. The accounting principles (policies) used to prepare the interim condensed financial statements are consistent with those applied to the preparation of the interim financial statements of Dekpol S.A. for the first half of Other new or amended standards and interpretations have no significant impact on the interim condensed financial statements of Dekpol S.A. for the nine months ended 30 th of September

35 3. ADDITIONAL INFORMATION TO EXTENDED CONSOLIDATED REPORT FOR 3 RD QUARTER 2018 OF DEKPOL CAPITAL GROUP 3.1 INFORMATION ABOUT DEKPOL CAPITAL GROUP BUSINESS ACTIVITIES The principal activities of the DEKPOL Capital Group are as follows: General Contracting in terms of industrial, warehousing, commercial and service facilities, including external infrastructure, such as roads, yards, parking lots including their infrastructure; property development - construction, finishing works and sale of flats, apartments and premises for commerce/services; Production of equipment for construction machines STRUCTURE OF DEKPOL CAPITAL GROUP As of 30 th of September 2018 and as at publication date of this report Dekpol Capital Group is composed of Dekpol S.A. as the parent entity and fifteen subsidiaries: Direct subsidiaries Dekpol S.A.: 1) Dekpol 1 Sp. z o.o. - general partner DEKPOL 1 Sp. z o.o. SKA 2) Dekpol 1 Sp. z o.o. S.K.A. - is responsible in DEKPOL Group for subsidiaries management, established for execution of specialized tasks and intangible and intellectual assets in DEKPOL Capital Group, 3) Dekpol Inwestycje Sp. z o.o. general partner of special-purpose vehicles executing particular real-estate development investments in Dekpol Capital Group (Dekpol Inwestycje Sp. z o.o. Pastelowa Sp.k.; Dekpol Inwestycje Sp. z o.o. Rokitki Sp.k.; Dekpol Inwestycje Sp. z o.o. Development Sp. k., Dekpol Inwestycje Sp. z o.o. Braniborska Sp. k., Dekpol Inwestycje Sp. z o.o. Myśliwska Sp. k.), 35

36 4) Dekpol Pszenna Sp. z o.o. general partner of special-purpose vehicle (SPV) to execution of real-estate development investment at Pszenna Street in Gdańsk, 5) UAB DEK LT Statyba company established to support the Company's operations in Lithuania, as well as to manage future contracts in the General Contractor implemented in Lithuania. 6) Smartex Sp. z o. o. - owner of a plot of land in Wrocław at Braniborska street, where the Company, together with a natural person who owns 37.7% of shares in Smartex, intends to jointly implement a development project. Dekpol S.A. holds 62.3% shares in Smartex and the right to acquire 37.7% shares in Smartex. A special purpose vehicle was established for the implementation of the investment - Dekpol Inwestycje Sp. z o.o. Braniborska Sp. k. 7) Betpref Sp. z o.o. a company established to ensure the continuity of deliveries of precast concrete products used in the performance of contracts in general contracting. Indirect subsidiaries of Dekpol S.A. (through Dekpol 1 Sp. z o.o. S.K.A.): 1) Dekpol Royalties Sp. z o.o. - the Company responsible in DEKPOL Capital Group for brand management in the context of its image and product promotion, 2) Almond Sp. z o.o. - the Company and owner of real-estate property in Gdańsk at Toruńska Street (Hotel Almond). Indirect subsidiaries of Dekpol S.A. (through Dekpol Inwestycje Sp. z o.o.): 1) Dekpol Inwestycje Sp. z o.o. Pastelowa Sp.k. (former Dekpol Inwestycje Sp. z o.o. Na Fali Sp.k.) special-purpose vehicle (SPV) to execution of real-estate development investment under the name Pastelowa in Gdańsk, 2) Dekpol Inwestycje Sp. z o.o. Rokitki Sp.k. spółka celowa do realizacji inwestycji deweloperskich w Rokitkach i Śliwinach koło Tczewa, 3) Dekpol Inwestycje Sp. z o.o. Development Sp. k. special purpose vehicle to carry out smaller development investments, including in Jurata and Hel. 4) Dekpol Inwestycje Sp. z o.o. Braniborska Sp. k. a special purpose vehicle for the implementation of a development investment in Wrocław. 5) Dekpol Inwestycje Sp. z o.o. Myśliwska Sp. k. a special purpose vehicle for the implementation of a development investment under the name Foresta in Gdańsk. 36

37 Indirect subsidiaries of Dekpol S.A. (through Dekpol Pszenna Sp. z o.o.): 1) Dekpol Pszenna Sp. z o.o. Sp.k. a special purpose vehicle for the implementation of a development investment under the name Grano Residence in Gdańsk at Pszenna street. Dekpol S.A. holds 100% shares in Dekpol 1 Sp. z o.o., UAB DEK LT Statyba, Dekpol Inwestycje Sp. z o.o., Dekpol Pszenna Sp. z o.o. and Betpref Sp. z o.o. and 100% of shares in Dekpol 1 Sp. z o.o. S.K.A. Dekpol 1 Sp. z o.o. S.K.A. holds 100% shares in companies Dekpol Royalties Sp. z o.o. and Almond Sp. z o.o. Dekpol Inwestycje Sp. z o.o. is limited partner of: Dekpol Inwestycje Sp. z o.o. Pastelowa Sp.k.; Dekpol Inwestycje Sp. z o.o. Rokitki Sp.k.; Dekpol Inwestycje Sp. z o.o. Development Sp. k., Dekpol Inwestycje Sp. z o.o. Myśliwska Sp. k., with 0.5% interest in profits in these companies, and Dekpol S.A. has a 99.5% share in profits. being a limited partner of these companies. Dekpol Inwestycje Sp. z o.o. is limited partner of Dekpol Inwestycje Sp. z o.o. Braniborska Sp. k., with 0.1% share in profits in this company, and 49.9% share in profits has Dekpol S.A. being a limited partner of this company. Dekpol Pszenna Sp. z o.o. is limited partner of Dekpol Pszenna Sp. z o.o. Sp.k. having in this company a 0.5% share in profits, while Dekpol S.A. being a limited partner of this company owns 99.5% of profit participation, with the proviso that the profit to be divided among Dekpol Group companies is reduced by PLN 500, attributable to the other limited partner of the company. All above mentioned Companies fall under full-method consolidation. In addition, from 12 th of April 2018, Dekpol S.A. held 50% of shares in Nordic Milan Sp. z o.o. On 5 th of October 2018 (event after the balance sheet date) Dekpol S.A. acquired a further 50% of shares in this company, and therefore currently holds 100% shares in Nordic Milan Sp. z o.o. The company operates in the property development industry - it owns a land property in Milanówek, where the property development project is implemented (the Issuer was the general contractor of this investment, and in connection with the purchase of shares, this investment was included in the projects implemented by the Dekpol Capital Group). Member of the Management Board of Dekpol S.A. Mr. Sebastian Barandziak is the President of the Management Board of this company. In the third quarter of 2018, the company was accounted for using the equity method as a jointly controlled company, and starting from the fourth quarter, the company will be subject to full consolidation. After the balance sheet date, two subsidiaries of Dekpol S.A. were entered into the National Court Register: Dekpol Inwestycje Sp. z o.o. Grano Resort Sp. k. and Dekpol Deweloper Sp. z o.o.,, more details can be found in point of this report. 37

38 In regards to the above, as at the date of publication of this report (i.e, on 28 th of November 2018), the Dekpol Capital Group consists of Dekpol S.A. as the parent company and eighteen subsidiaries CHANGES IN THE STRUCTURE OF DEKPOL CAPITAL GROUP IN THE 3 RD QUARTER OF 2018 AND AFTER THE BALANCE SHEET DATE On 2 nd of August 2018, Betpref Sp. z o.o. was entered into the National Court Register. The purpose of the creation is to ensure the continuity of deliveries of precast concrete products used in the performance of contracts in general contracting segment. 100% shares in the company belong to Dekpol S.A. On 5 th of October 2018, Dekpol S.A. has concluded with Eco Milan Sp. z o.o. an agreement to purchase 50% shares in Nordic Milan Sp. z o.o. Detailed information on the acquisition of shares can be found in section of this report. On 14 th of November 2018, the company Dekpol Inwestycje Sp. z o.o. Grano Resort Sp. k. was entered into the National Court Register. The goal is to implement a property development investment in Gdańsk on the Sobieszewska Island. Dekpol Inwestycje Sp. z o.o. Grano Resort Sp. k. is an indirect subsidiary of Dekpol S.A. through Dekpol Inwestycje Sp. z o.o., which is its general partner with 0.5% share in profits, and 99.5% share in profits has Dekpol S.A. being a limited partner of this company. On 19 th of November 2018 Dekpol Deweloper Sp. z o.o. was entered into the National Court Register. The purpose of the creation is the planned separation of the organized part of the enterprise of Dekpol S.A. covering the property development activity and transferring it in kind to Dekpol Deweloper Sp. z o.o.. Dekpol Deweloper Sp. z o.o. is a direct subsidiary of Dekpol SA, which holds 100% of shares. 3.2 GENERAL INFORMATION ABOUT THE PARENT ENTITY DEKPOL S.A COMPANY BODIES Management Board The Issuer s Management Board is composed of one or more Members appointed and removed from office by the Supervisory Board. The Supervisory Board entrusts one of the Members of the Management Board with the function of the President of the Management Board. Other Members of the Management Board may be entrusted with the function of Vice Presidents of the Management Board. The term of office of the Members of the Management Board is 5 (five) years and is not joint. 38

39 As at 30 th of September 2018 and as at the date of publication of this report, the Issuer's Management Board is composed of: Name and surname Function Mariusz Tuchlin Michał Skowron Sebastian Barandziak Andrzej Kuchtyk Rafał Dietrich President of Management Board (CEO) Vice President of Management Board Member of Management Board Member of Management Board Member of Management Board The term of office of Sebastian Barandziak will expire on 1 st of March Michał Skowron's term of office expires on 1 st of January The term of office of other members of the Management Board will expire on 1 st of April 2019 Changes in the composition of the Company's Management Board in the third quarter of 2018 On 10 th of August 2018, the Company received the resignation of Mr. Krzysztof Łukowski from the position of the Vice-President of the Management Board of the Company with effect on 31 st of August Supervisory Board Supervisory Board consists of five to seven members. Vocation, as well as dismissal of members of Supervisory Board follows through resolution of General Meeting of Shareholders. This body elects the Chairman of Supervisory Board, may also entrust the function of Vice-president to another member. The term of office of Supervisory Board members takes 5 years and cannot be joint. As at 30 th of March 2018 and as at the date of publication of this report, the Issuer's Supervisory Board consists of: Name and surname Roman Suszek Wojciech Sobczak Jacek Grzywacz Grzegorz Wąsacz Jacek Kędzierski Function Chairman of Supervisory Board Member of Supervisory Board Member of Supervisory Board Member of Supervisory Board Member of Supervisory Board 39