CAPITAL GROUP. Condensed consolidated financial statements for the period of 6 months ended of 30th June 2017

Transcription

1 FABRYKI MEBLI FORTE S.A. CAPITAL GROUP Condensed consolidated financial statements for the period of 6 months ended of 30th June 2017 Prepared in accordance with the International Financial Reporting Standards FABRYKI MEBLI FORTE S.A. ul. Biała Ostrów Mazowiecka Polska Ostrów Mazowiecka, 14th September, 2017

2 TABLE OF CONTENTS Consolidated selected financial data... 2 Consolidated profit and loss account... 3 Consolidated statement of comprehensive income... 4 Consolidated statement of financial situation (balance sheet)... 5 Consolidated cash flow statement... 6 Consolidated statement of changes in equity... 7 Consolidated statement of changes in equity... 8 Consolidated statement of changes in equity... 9 Seasonality of operations Revenues and costs Sales revenues and geographic structure Other operating revenues Other operating cost Financial revenues Financial costs Costs by type Commentary to the Group results and basic economic-financial amounts Selected financial data Profit and loss account Statement of comprehensive income Statement of financial situation (balance sheet) Cash flow statement Statement of changes in equity Statement of changes in equity Statement of changes in equity... 21

3 CONSOLIDATED SELECTED FINANCIAL DATA in thousands of PLN in thousands of EUR Dane dotyczące skonsolidowanego sprawozdania finansowego Sales revenue Profit (loss) on operating activities Profit (loss) before tax Net profit attributable to equity owners of the Parent company Total comprehensive income for the period Net cash flow from operating activities Net cash flow from investment activities ( ) ( ) (34 125) (26 514) Net cash flow from financial activities Net increase (decrease) in cash and cash equivalents (62 332) (6 037) (14 675) (1 378) Number of shares Net profit per share attributable to equity owners of the parent (in PLN/EUR) 1,91 2,26 0,45 0, Total assets Total liabilities Long-term liabilities Short-term liabilities Total equity attributable to equity owners of the Parent company Share capital Book value per share (in PLN/EUR) 26,06 22,98 6,17 5,19 2

4 CONSOLIDATED PROFIT AND LOSS ACCOUNT For the 6 months ended 30 June June 2016 Continued operations Revenue from sales of goods, products and materials Revenue from sales of services Sales revenue Cost of sales of sold goods, products and materials ( ) ( ) Cost of sales of sold services (1 992) (3 423) Cost of sales ( ) ( ) Gross profit (loss) from sales Other operating revenue Costs of sales ( ) ( ) General administrative costs (26 278) (23 239) Other operating costs (3 591) (4 244) Profit (loss) on operating activities Financial revenue Financial costs (3 883) (2 898) Profit (loss) on derivative financial instruments Share in the profit/ loss of investments valued at equity method (3 390) - Profit (loss) before tax Income tax (10 948) (14 767) Profit (loss) on continued operations of the period Discontinued operations - - Profit (loss) on discontinued operations of the period - - Profit (loss) of the period Attributable to: Shareholders of the Parent Company Non-controlling shareholders 23 (9) Profit (loss) on continued operations of the period - basic - diluted 1,91 2,26 1,91 2,26 3

5 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the reporting period ended 30 June June 2016 Profit (loss) of the period Other net comprehensive income, including: (19 666) Items which in the future will not be reclassified to the profit and loss account Incentive scheme Items which in the future may be reclassified to the profit and loss account (20 198) Foreign exchange differences on translation of foreign operations (711) 34 Hedge accounting (24 978) Income tax on other comprehensive income (8 161) Total comprehensive income for the period Attributable to: Shareholders of the Parent Company Non-controlling shareholders 23 (9) 4

6 CONSOLIDATED STATEMENT OF FINANCIAL SITUATION (BALANCE SHEET) At 30 June December June 2016 ASSETS Non-current assets Tangible fixed assets Intangible assets Financial assets Receivables due to financial derivative instruments Investments valued at equity method Deferred income tax assets Investment properties Current assets Inventory Trade and other receivables Receivables due to financial derivative instruments Income tax receivables Accruals Financial assets Cash and cash equivalents TOTAL ASSETS LIABILITIES Total equity Equity (attributable to shareholders of the Parent Company), including: Basic equity Surplus of share sale above their nominal value Exchange differences on translation of foreign operations Revaluation reserve from hedging instruments (9 328) (15 637) Other Revaluation reserves Incentive Scheme Other reserve capital Retained earnings Capital attributable to non-controlling shareholders Long-term liabilities Interest-bearing loans and borrowings Deferred income tax provision Provision for benefits after the employment period Deferred revenues and accruals Liabilities due to financial derivative instruments Financial liabilities due to lease Other long-term liabilities Short-term liabilities Trade and other liabilities Current portion of interest-bearing loans and borrowings Income tax liabilities Liabilities due to financial derivative instruments Provisions, deferred revenues and accruals Financial liabilities due to lease Total liabilities TOTAL LIABILITIES

7 CONSOLIDATED CASH FLOW STATEMENT Cash flows from operating activities For the 6 months ended 30 June December June 2016 Profit (loss) of the period Adjustments by: (20 108) Share in the profit/ loss of investments valued at equity - method (Profit)/loss of non-controlling shareholders (9) Depreciation Foreign exchange (gains)/losses (11 975) Net interest and dividends (Profit)/loss on investment activities Change in the valuation of derivative financial instruments (31) Change in receivables (6 666) Change in inventories (6 759) (4 724) Change in liabilities, excluding loans and borrowings (4 820) Change in accruals and deferrals (1 156) Change in provisions (4 364) (2 411) Income tax paid (18 910) (23 684) (13 433) Current tax recognised in the profit and loss account Foreign exchange differences (711) 86 (34) Provision for retirement benefits Valuation of the Incentive Scheme Other adjustments 95 (119) (31) Net cash flows from operating activities Cash flows from investment activities Sale of tangible fixed assets and intangible assets Purchase of tangible fixed assets and intangible assets ( ) ( ) ( ) Real property investments (396) (536) (22) Purchase of financial assets (8 583) ( ) (101) Dividends received Interest received Borrowings granted (2 400) (1 075) (520) Other investment inflows Net cash flows from investing activities ( ) ( ) ( ) Cash flows from financing activities Inflows from loans and borrowings taken out Repayment of loans and borrowings ( ) (62 209) (3 140) Repayment of leasing liabilities (674) (312) (519) Dividends paid to shareholders of the Parent Company (4 780) (23 901) (23 901) Interest paid (3 706) (2 875) (839) Other financial inflows - (8) (20) Net cash flows from financial activities Net increase (decrease) in cash and cash (equivalents) (62 332) (6 037) Net foreign exchange differences (from the opening balance translation) (248) 604 (173) Opening balance of cash Closing balance of cash, including: of limited disposability

8 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the period ended 30 June 2017 Share capital Share premium Foreign exchange differences on consolidation Other revaluation reserve Incentive Scheme Attributable to the shareholders of the Parent Company Retained earnings Revaluation reserve from hedging instruments Other reserve capital Total Foreign exchange differences on consolidation Equity of noncontrolling interest Other revaluation reserve Total equity As at 01 January (9 328) Changes in Accounting Principles (Policy) Error adjustments As at 01 January 2017 after adjustments (9 328) Payment of dividend for ( ) Reclassification to reserve capital (4 780) - - (4 780) - (4 780) Current result Hedge accounting Foreign exchange differences - - (711) (711) - (711) Comprehensive income for the period - - (711) As at 30 June

9 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the year ended 31 December 2016 Share capital Share premium Foreign exchange differences on consolidation Other revaluation reserve Attributable to the shareholders of the Parent Company Revaluation Incentive Retained reserve from Other reserve Scheme earnings hedging capital instruments Total Equity of noncontrolling interest Total equity As at 1 January Changes in Accounting Policy Error adjustments As at 1 January 2016 after adjustments Settlement of Incentive Schemeshares of G series Payment of dividend for (23 901) - - (23 901) - (23 901) Reclassification to reserve capital (54 035) The capital increase at the subsidiary- transaction with noncontrolling interest (443) - Provisions for employee benefits Incentive Scheme Profit (loss) for the period (13) Hedge accounting (13 923) - (13 923) - (13 923) Foreign exchange differences Comprehensive income for the period (13 923) (13) As at 31 December (9 328)

10 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the period ended 30 June 2016 Share capital Share premium Foreign Other exchange revaluati differences on on consolidation reserve Incentive Scheme Attributable to the shareholders of the Parent Company Retained earnings Revaluation reserve from hedging instruments Other reserve capital Total Foreign exchange differences on consolidation Equity of noncontrolling interest Other revaluation reserve Total equity As at 01 January Changes in Accounting Principles (Policy) Error adjustments As at 01 January 2016 after adjustments Payment of dividend for (23 901) - - (23 901) - (23 901) Reclassification to reserve capital (54 035) The capital increase at the subsidiary- transaction with noncontrolling interest (443) - Provisions for employee benefits Incentive Scheme Current result (9) Hedge accounting (20 232) - (20 232) - (20 232) Foreign exchange differences Comprehensive income for the period (20 232) (9) As at 30 June (15 637)

11 Seasonality of operations Revenues from sales Share % in Share % in total Domestic Export of products, total quarter quarter revenues revenues materials, revenues revenues goods and services I Q % % II Q % % Razem I półrocze I Q % % % II Q % % % III Q % % % IV Q % % % Razem rok % % % Revenues and costs Sales revenues and geographic structure For the reporting period ended Sales revenues Revenues from sales of goods, products and materials - products goods materials Revenues from sales of services Total net revenues from sales including from related entities (54)* * corrections of sales issued on non- consolidated entity TM HANDEL Sp. z o.o. Other operating revenues For the reporting period ended Other operating revenues Reversal of impairment write-downs Gain on sale of property, plant and equipment Subsidies Compensations Other Total other operating revenues Other operating cost For the reporting period ended Other operating costs Creation of revaluation write-downs Loss from the disposal of fixed assets Scrapping of inventory Donations Penalties and compensations Court costs 2 69 Other

12 Total other operating costs Financial revenues For the reporting period ended Financial revenue Dividends Exchange differences of financial assets and liabilities Interest Financial revenues, total Financial costs For the reporting period ended Financial costs Interest on loans and leasing Commission on loans Exchange differences of financial assets and liabilities Other Financial costs, total Costs by type For the reporting period ended Costs by type Amortisation Consumption of materials and energy External services Taxes and fees Payroll Social insurance and other benefits Other costs by type Costs by type Change in product inventory and accruals (11 184) Manufacturing cost of products for internal purposes (1 461) (2 042) Costs of sales ( ) ( ) General administrative costs (26 278) (23 239) Manufacturing cost of sold products and services Value of goods and materials sold Costs of sales

13 FABRYKI MEBLI FORTE CAPITAL GROUP Half-year Management Board s report on the operations of the Capital Group in the first half of 2017 FABRYKI MEBLI FORTE S.A. ul. Biała Ostrów Mazowiecka Polska Ostrów Mazowiecka, 14th September, 2017

14 Commentary to the Group results and basic economic-financial amounts Group performance and key economic and financial data: Item HI 2017 in PLN 000 H in PLN 000 Change in PLN 000 % change Sales revenue (4 229) (0.8)% Cost of goods sold ( ) ( ) % Gross profit on sales (7 240) (3.5)% Gross margin on sales % 37.7% 38.7% Cost of sales ( ) ( ) % G&A costs (26 278) (23 239) % Operating profit (EBIT) (13 265) (18.7)% EBITDA % Share in profit/loss of subsidiaries valued under the equity method (3 390) - (3 390) (100.00)% Gross profit (12 145) (17.7)% Net profit (8 326) (15.4)% Net profit margin % 8.5% 10.0% Return on equity (ROE) 7.3% 11.0% Return on assets (ROA) 3.5% 6.6% In H1 2017, the FORTE Group s sales revenue amounted to PLN million, compared to PLN million in the corresponding period of 2016 (a decrease by 0.8%). Export sales of the FORTE Group totalled PLN million 86.5% of total sales (in H PLN million 84.4%). Sales in the Polish market amounted to PLN 72.1 million (13.5%) against PLN 84.4 million (15.6%) in the corresponding period of The percentage of sales in individual markets was as follows: German-speaking countries 57.0% (54.8% - H1 2016), Western and Northern Europe 19.0% (20.7% - H1 2016), Poland 13.5% (15.6% - H1 2016), Central, Southern and Eastern Europe 10.5% (8.8% - H1 2016). Gross margin on sales stood at the level of 37.7%, i.e. one percentage point lower than in the corresponding period of the previous year. The main reason for the decrease in profitability was a decrease in the EUR/PLN exchange rate in comparable periods. Cost of sales totalled PLN million and slightly increased by 2% compared to H The cost of sales to revenue ration stood at 21.5% versus 20.9% in H1 of the previous year. G&A costs totalled PLN 26.3 million versus PLN 23.2 million in the comparative period. The G&A costs to revenue ratio stood at 4.9% compared to 4.3% last year. The increase in this category of costs is mainly due to increased investment in programmes related to the Group s continuing policy aimed at the development of staff and CSR activities. Operating profit amounted to PLN 57.7 million (10.8% of revenue), compared to PLN 70.9 million (13.1% of revenue) in the corresponding period of In the reporting period, the net profit amounted to PLN 45.7 million (8.5% of revenue), compared to PLN 54 million in H1 last year (10% of revenue). Characteristics of the balance sheet PLN % change % of balance sheet total PLN 000 % of balance sheet total 2017/2016 Non-current assets % % 44% Current assets % % (24%) 12

15 Total assets % % Equity % % 13% Non-current liabilities and provisions % % 15% Current liabilities and provisions % % (1%) Total liabilities % % Non-current assets rose by PLN thousand, which is primarily due to the realized deliveries of some technological lines to the chipboard factory, in respect of which advance payments amounting to PLN thousand were effected in 2016 and which were disclosed under other receivables, as well as capital expenditure incurred in connection with the construction of the chipboard factory in the amount of PLN thousand. Current assets decreased by PLN thousand, which mainly results from the aforementioned reclassification of receivables from advance payments for investment purposes totalling PLN thousand as tangible fixed assets. The balance of cash decreased by PLN thousand, in large part due to its use for partial repayment of working capital loans and for partial financing of the Group s capital expenditure. On the liabilities side, significant increase was recorded in deferred income (PLN thousand) in respect of an investment grant received by our subsidiary Tanne Sp. z o.o., as well as in deferred tax liabilities (PLN thousand). The balance of bank loans increased by PLN thousand. The balance of investment loans increased by PLN thousand, mainly as a result of their use for repayment of investment commitments related to the construction of the chipboard factory. The balance of working capital loans fell by PLN thousand due to their partial repayment and a decrease in the EUR/PLN exchange rate applied to the balance sheet valuation of loans denominated in EUR ( at the end of December 2016 / at the end of June 2017). Signature of the person entrusted with bookkeeping: Chief Accounting Anna Wilczyńska... Signatures of all members of the Management Board: President of the Management Board Maciej Formanowicz Member of the Management Board Gert Coopmann Member of the Management Board Klaus Dieter Dahlem Member of the Management Board Maria Florczuk Member of the Management Board Mariusz Gazda... Ostrów Mazowiecka, 14 th September,

16 FABRYKI MEBLI FORTE S.A. Condensed financial statements for the period of 6 months ended on 30th June 2017 Prepared in accordance with the International Financial Reporting Standards FABRYKI MEBLI FORTE S.A. ul. Biała Ostrów Mazowiecka Polska Ostrów Mazowiecka, 14th September, 2017

17 SELECTED FINANCIAL DATA in thousands of PLN in thousands of EUR Sales revenue Profit (loss) on operating activities Profit (loss) before tax Profit (loss) for the period Total comprehensive income for the period Net cash flows from operating activities Net cash flows from investing activities (23 656) ( ) (5 570) (24 046) Net cash flows from financial activities (29 880) (7 035) Net increase (decrease) in cash and cash (equivalents (42 294) (16 724) (9 958) (3 818) Number of shares Declared or paid dividend per share (in PLN/EUR) 0,20 1,00 0,05 0,23 Net profit per share (in PLN/EUR) 1,67 2,03 0,39 0, Total assets Total liabilities Long-term liabilities Short-term liabilities Total equity Share capital Book value per share (in PLN/EUR) 23,79 20,86 5,63 4,72 14

18 PROFIT AND LOSS ACCOUNT For the 6 months ended 30 June June 2016 Continued operations Revenue from sales of products, goods and materials Revenue from sales of services Sales revenue Cost of sales of sold products, goods and materials ( ) ( ) Cost of sales of sold services (1 564) (14 047) Cost of sales ( ) ( ) Gross profit from sales Other operating revenue Costs of sales ( ) ( ) General administrative costs (24 405) (22 352) Other operating costs (3 432) (3 741) Operating profit (loss) Financial revenue Financial costs (2 791) (2 347) Profit (loss) on derivative financial instruments Profit (loss) before tax Income tax (7 987) (10 350) Profit (loss) on continued operations of the period Discontinued operations - - Profit (loss) on discontinued operations of the period - - Profit (loss) of the period Profit (loss) per share for the period (in PLN): - basic 1,67 2,03 - diluted 1,67 2,03 15

19 STATEMENT OF COMPREHENSIVE INCOME For the 6 months ended 30 June June 2016 Profit (loss) of the period Other net comprehensive income, including: (19 701) Items which in the future will not be reclassified to the profit and loss account Incentive scheme Items which in the future may be reclassified to the profit and loss account (20 233) Hedge accounting (24 979) Income tax on hedge accounting (8 161) Total comprehensive income for the period

20 STATEMENT OF FINANCIAL SITUATION (BALANCE SHEET) At 30 June December June 2016 ASSETS Non-current assets Tangible fixed assets Intangible assets Receivables due to derivative financial instruments Financial assets Deferred income tax assets Current assets Reserves Trade and other receivables Receivables due to derivative financial instruments Income tax receivables Accruals Financial assets Cash and cash equivalents TOTAL ASSETS LIABILITIES Equity Share capital Surplus of share sale above their nominal value Revaluation reserve from hedging instruments (9 328) (15 637) Business combination capital (1 073) (1 073) (1 073) Incentive Scheme Other reserve capitals Retained earnings Long-term liabilities Interest-bearing loans and borrowings Deferred income tax provision Provision for benefits after the employment period Accruals Financial liabilities due to lease Short-term liabilities Trade and other liabilities Current portion of interest-bearing loans and borrowings and Income tax liabilities Liabilities due to financial derivative instruments Provisions and accrued liabilities Financial liabilities due to lease Total liabilities TOTAL LIABILITIES

21 CASH FLOW STATEMENT Cash flow from operating activity For the 6 months ended: 30 June December June 2016 Profit/ (loss) of the period Adjustments by: (28 717) Amortisation Foreign exchange (profit)/loss (3 336) Net interest and dividends (7 194) (8 995) (6 121) (Profit)/ Loss on investing activity Change in the valuation of derivative financial instruments Change in receivables (3 663) (175) Change in inventories (6 914) (4 368) Change in liabilities, excluding loans and borrowings (8 312) Change in prepayments and accruals Change in provisions (2 108) (4 925) (4 871) Income tax paid (17 219) (20 151) (11 509) Current tax recognised in profit or loss Provision for retirement benefits Valuation of the Incentive Scheme Net operating cash flow Cash flows from investment activities Sales of property, plant and equipment and intangible assets Purchases of property, plant and equipment and intangible assets (6 328) (40 077) (26 400) Purchase of financial assets (8 583) (95 312) (75 097) Dividends received Interest received Borrowings granted (17 045) (94 542) (31 309) Repayment of borrowings granted Other outflows Net investment cash flow (23 656) ( ) ( ) Cash flows from financing activities Inflow from loans and borrowings taken out Repayment of loans and borrowings (78 156) (60 492) (3 140) Dividends paid ( 4 780) (23 901) (23 901) Interest paid (972) (1 850) (749) Repayment of leasing liabilities (665) (312) (519) Net financial cash flow (29 880) Net increase (decrease) in cash and cash equivalents (42 294) (16 724) Net foreign exchange differences 87 (37) 4 Opening balance of cash Cash at end of year, including: of limited disposability

22 STATEMENT OF CHANGES IN EQUITY for the period ended on 30 June 2017 Share capital Supplementary capital from share premium Retained earnings/ (accumulated loss) Revaluation reserve from hedging instruments Other reserve capital Business combination capital Incentive Scheme Total As at 1 January (9 328) (1 073) Changes in adopted accounting principles (policy) Error adjustments As at 1 January 2017 after adjustments (9 328) (1 073) Impairment of retained earnings to reserve capital - - (92 415) Payment of dividend for (4 780) ( 4 780) Current result Hedge accounting Comprehensive income for the period As at 30 June (1 073)

23 STATEMENT OF CHANGES IN EQUITY for the year ended on 31 December 2016 Share capital Supplementary capital from share premium Retained earnings/ (accumulated loss) Revaluation reserve from hedging instruments Other reserve capital Business combinatio n capital Incentive Scheme Total As at 1 January (1 073) Changes in adopted accounting principles (policy) Error adjustments As at 1 January 2015 after adjustments (1 073) Impairment of retained earnings to reserve capital - - (54 035) Payment of dividend for (23 901) (23 901) Provisions for employee benefits Current result Hedge accounting (13 924) (13 924) Valuation of the Incentive Scheme Comprehensive income for the period (13 924) As at 31 December (9 328) (1 073)

24 STATEMENT OF CHANGES IN EQUITY for the period ended on 30 June 2016 Share capital Supplementary capital from share premium Retained earnings/ (accumulated loss) Revaluation reserve from hedging instruments Other reserve capital Business combinatio n capital Incentive Scheme Total As at 1 January (1 073) Changes in adopted accounting principles (policy) Error adjustments As at 1 January 2016 after adjustments (1 073) Impairment of retained earnings to reserve capital - - (54 035) Payment of dividend for (23 901) (23 901) Current result Hedge accounting (20 233) (20 233) Valuation of the Incentive Scheme Comprehensive income for the period (20 233) As at 30 June (15 637) (1 073)

25 Signature of the person entrusted with bookkeeping: Chief Accounting Anna Wilczyńska... Signatures of all members of the Management Board: President of the Management Board Maciej Formanowicz Member of the Management Board Gert Coopmann Member of the Management Board Klaus Dieter Dahlem Member of the Management Board Maria Florczuk Member of the Management Board Mariusz Gazda... Ostrów Mazowiecka, 14 th September,