3 quarters accumulatively / 2009 period from to

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1 SELECTED FINANCIAL DATA thousand PLN thousand EUR 3 quarters accumulatively /2009 period quarters accumulatively / 2009 period from to 3 quarters accumulatively/ 2010 period from to 3 quarters accumulatively / 2009 period from to Revenue from sale Profit (loss) on operations Profit (loss) before taxation Net profit (loss) Profit (loss) attributable to the parent company's shareholders Profit per share (PLN) 2,16 4,15 0,54 0,94 Cash flow account Net cash from operations Net cash from investments Net cash from financial activity Net increase/decrease in cash and cash equivalents Balance sheet Assets Longterm liabilities Shortterm liabilities Equity Equity attributable to the shareholders of the parent company Individual data Profit and loss account Revenue from sale Profit (loss) on operations Profit (loss) before taxation Net profit (loss) Profit per share (PLN) 2,16 4,15 0,54 0,94 Cash flow account Net cash from operations Net cash from investments Net cash from financial activity Net increase/decrease in cash and cash equivalents Balance sheet Assets Longterm liabilities Shortterm liabilities Equity To convert the selected financial data into EURO the principle of an average exchange rate was applied in accordance with par. 85 section 2 of the Regulation of the Council of Ministers of February dated 19th The following Euro conversion rates were applied: 2010; 2009 for the balance sheet values PLN (3 quarters of 2010); PLN (3 quarters of 2009) The selected financial data from the 2009 balance sheet were presented as at December 31st 2009.

2 Suwary Group Summarised quarterly consolidated financial statement For the period July 1 st 2010 September 30 th 2010 Pabianice

3 Consolidated balance sheet ASSETS Fixed assets Goodwill Intangible assets Tangible fixed assets Investment properties Investments in subsidiaries 15 Investments in related entities Receivables and loans Derivative financial instruments Other longterm financial assets Longterm prepayments and accruals Deferred tax assets Fixed assets Current assets Inventories Trade receivables and other receivables Current tax assets Loans 24 Derivative financial instruments Other shortterm financial assets Shortterm prepayments and accruals Cash and cash equivalents Fixed assets classified as held for sale Current assets Total assets Liabilities and shareholders equity Equity Share capital Own shares () (665) (665) Share premium account Other capital reserves Retained earnings: profit (loss) carried forward net profit (loss) attributable to the shareholders of the parent entity Minority interest Equity

4 Liabilities Longterm liabilities Credits, loans and other debt instruments 195 Financial lease Derivative financial instruments Other liabilities Deferred corporate and personal tax liability Liabilities and reserves for employee benefits Other longterm reserves Longterm accrued expenses and deferred income Longterm liabilities Shortterm creditors Trade payables to related entities and other creditors Current income tax payable 166 Credits, loans and other debt instruments Financial lease Derivative financial instruments Liabilities and reserves for employee benefits Other shortterm reserves Shortterm accrued expenses and deferred income Creditors related to assets classified as held for sales Shortterm creditors Total creditors Total liabilities and shareholders equity CONSOLIDATED PROFIT & LOSS ACCOUNT From to From to From to Continuing activity Revenues from sales Revenues from sales of products Revenues from sales of services Revenues from sales of goods and materials Selling costs Costs of products sold Costs of services sold Costs of goods and materials sold Gross profit (loss) on sales

5 Selling costs Overheads Other operating income Other operating costs Profit (loss) on sale of subsidiaries (+/) Operating profit (loss) Financial income Financial costs Share in profit (loss) of the entities valued with the equity method (+/) Profit (loss) before taxation Income tax Net profit (loss) from continuing activity Discontinued operations Net profit (loss) on discontinued operations Net profit (loss) from to from to Continuing activity Revenues from sales Revenues from sales of products Revenues from sales of services Revenues from sales of goods and materials Selling costs Costs of products sold Costs of services sold Costs of goods and materials sold Gross profit (loss) on sales Selling costs Overheads Other operating income Other operating costs Profit (loss) on sale of subsidiaries (+/) Operating profit (loss) Financial income Financial costs 43 8 Share in profit (loss) of the entities valued with the equity method (+/) Profit (loss) before taxation Income tax Net profit (loss) from continuing activity Discontinued operations Net profit (loss) on discontinued operations Net profit (loss)

6 NET PROFIT (LOSS) PER ORDINARY SHARE (PLN) From continuing operations basic return diluted return From continuing and discontinued activities basic return diluted return CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Net profit (loss) Other comprehensive incomes Revaluation of fixed assets Financial assets available for sale profits (losses) disclosed in the period under other comprehensive assets amounts transferred to the income statement Cash flow hedges profits (losses) disclosed in the period under other comprehensive incomes amounts transferred to the income statement amounts recognised at the initial value of the items hedged Income tax on the components of other comprehensive incomes Other comprehensive incomes after taxation Total comprehensive incomes from to from to Net profit (loss) Other comprehensive incomes Revaluation of fixed assets Financial assets available for sale profits (losses) disclosed in the

7 period under other comprehensive assets amounts transferred to the income statement Cash flow hedges profits (losses) disclosed in the period under other comprehensive incomes amounts transferred to the income statement amounts recognised at the initial value of the items hedged Income tax on the components of other comprehensive incomes Other comprehensive incomes after taxation Total comprehensive incomes

8 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Share capital Equity attributable to the shareholders of the parent entity Own shares () Share premium Other capitals Retained earnings Total Minority shares Total equity Balance as at (665) Changes in accounting principles Adjustment of fundamental error Balance after changes (665) Changes in equity in the period from to Issue of shares Issue of shares in connection with exercising the option (program of payment by shares) Option valuation (program of payment by shares) Changes in the group structure (transactions with minority shareholders) Dividends Sale of own shares Transfer of financial result to capital (3 529) Total transactions with owners (3 529) Net profit for the period Other comprehensive incomes after taxation for the period

9 Total comprehensive incomes Transfer to retained earnings (sale of revaluated tangible fixed assets) Balance as at CONSOLIDATE STATEMENT OF CHANGES IN EQUITY (continued) Share capital Own shares () Share premium Other capitals Retained earnings Total equity Balance as at (665) Changes in accounting principles Adjustment of fundamental error Balance after changes (665) Changes in equity in the period Issue of shares Issue of shares in connection with exercising the option (program of payment by shares) Option valuation (program of payment by shares) Changes in the group structure (transactions with minority shareholders) Dividends Transfer of financial result to capital (7 260) Total transactions with owners (7 260) Net profit for the period Other comprehensive incomes after taxation from

10 01.01 to Total comprehensive incomes Transfer to retained earnings (sale of revaluated fixed assets) Balance as at (665)

11 CONSOLIDATE STATEMENT OF CHANGES IN EQUITY (continued) Share capital Own shares () Share premium Other capitals Retained earnings Total equity Balance as at (665) Changes in accounting principles Adjustment of fundamental error Balance after changes (665) Changes in equity in the period Issue of shares Issue of shares in connection with exercising the option (program of payment by shares) Option valuation (program of payment by shares) Dividends Transfer of financial result to capital (7 260) Total transactions with owners (7 260) Net profit for the period Other comprehensive incomes after taxation from to Total comprehensive incomes Transfer to retained earnings (sale of revaluated fixed assets) Balance as at (665)

12 CONSOLIDATED CASH FLOW STATEMENT From to From to From to Operating cash flow Net profit (loss) Adjustments Impairment writeoffs of tangible fixed assets Impairment writeoffs of intangible assets Change in fair value of investment properties Change in fair value of financial assets (liabilities ) measured through the profit and loss account Cash flow hedging instruments transferred from equity Impairment losses to financial assets Profit (loss)on sale of nonfinancial fixed assets (14) Profit (loss) on sale of financial assets (other than derivative instruments) Exchange gains (losses) (41) Cost of interest Profit on interest and dividends Costs of payment by shares (incentive scheme) Other adjustments 5 47 Total adjustments Movements in stock 925 (342) (89) Movements in receivables (1 795) Movements in liabilities Movements in provisions, prepayments and accruals (755) (658) (392) Increase (decrease) related to construction contracts Movements in working capital Settlement of derivative instruments Operating interest paid Income tax paid (506) (786) (1 028) Net cash from operations

13 CONSOLIDATED CASH FLOW STATEMENT (continued) Cash flow from investment activity Outflows for the purchase of intangible assets Inflows from the sale of intangible 19 assets Outflows for the purchase of tangible fixed assets Inflows from the sale of tangible fixed assets Outflows for the purchase of investment properties Inflows from the sale of investment properties Net outflows for the purchase of (19 713) subsidiaries Net inflows from the sale of subsidiaries Received repayments of the loans granted Loans granted Outflows for the purchase of other financial assets Inflows from the sale of other financial assets (2 029) (605) (2 586) Inflows from grants Interest received Dividends received Net cash from investment activity (21 723) (605) (2 586) Cash flow from financial activity Net inflows from issue of shares Purchase of own shares Inflows from issue of debt securities Redemption of debt securities Inflows from credits and loans Credit and loan repayments (1) (1) (1) Finance lease repayments (98) (546) (733) Interest paid (37) (41) Dividends paid Net cash from financial activity (584) (775) Net increase/decrease in cash and cash equivalents (7 005) Cash and cash equivalents at the beginning of the period Change in cash due to foreign exchange differences (41) (41) Cash and cash equivalents at the end of

14 the period EXPLANATORY NOTES AND ADDITIONAL INFORMATION ABOUT THE INTERIM FINANCIAL STATEMENT 1. General The parent entity to the SUWARY Group, hereinafter referred to as the Group, is Suwary S.A. (hereinafter referred to as the Parent Company ). The Parent Company was established by a Notary Deed of 29 th June It is entered into the Register of Business Entities of the National Court Register under the number KRS in the District Court for the City of Łódź, XX Commercial Department of the National Court Register. The Company was given the REGON statistical number The parent company s registered office is located at 45/47 Piotra Skargi Street, Pabianice. The Company s registered office is also its primary place of business. The objects of the Parent Company and its subsidiaries are as follows: manufacture of other plastic products reflexive warning signs manufacture of plastic packaging manufacture of washing and cleaning agents manufacture of basic and other inorganic chemical products other specialized wholesale wholesale of chemical products The data in the summarised interim financial statement cover the Parent Company and the following subsidiaries: Share in the group capital Business name of subsidiary Registered office Kartpol Group Sp. z o.o. Wołomin 80 % 0 % 0 % This summarised interim financial statement was approved for publication by the Company s Management Board on November 04 th Basis for preparation and accounting policy 2.1 Basis for preparation This summarized quarterly financial statement of the Company covers the threemonth period ending on September 30 th 2010 and it has been prepared in accordance with IAS 34 Interim Financial Reporting. Due to the establishment of the Group in September 2010 the balance sheet of the Parent Company prepared as at September 30 th 2009 and December 31 st 2009 and a separate profit and loss account, a separate statement of comprehensive income, a separate statement of changes in equity, and a separate cash flow statement for 2009 and for the period January September 2009 were presented as the data on the comparative periods. The summarized interim consolidated financial statement does not include all the information reported in the annual financial statement prepared in accordance with the IFRS.

15 The reporting currency for this interim summarized consolidated financial statement is the Polish Zloty (PLN) and all amounts are expressed in PLN thousand (unless indicated otherwise). The interim summarised consolidated financial statement has been prepared on the basis of the assumption that the Company will continue as a going concern in the foreseeable future. As at today there exist no circumstances indicating a threat to the continuation of their business by the companies comprising the Group. 2.2 Accounting policy This summarized interim consolidated financial statement has been prepared in accordance with the accounting policy presented in the last financial statement of the Company for the financial year ending on 31 st December 2009, excluding the following amendments to the standards and interpretations applicable since 1 st January 2010: IFRS 3 (amendment) Business combination IAS 27 (amendment) Consolidated and separate financial statements Amendments to the IFRS following the annual improvement project (the Annual Improvement Project 2009). IFRS 3 (amendment) Business combination The amended standard introduced significant changes to the principles of accounting for business combination. The most significant changes which had an influence upon the combination carried out by the Group over the 9 months of 2010 include: A new approach to the establishment of a company value, according to which the goodwill from an acquisition is established on the acquisition of control over the entire entity acquired, and not (as it has been so far) pro rata to the holdings of the entity acquired. The following amendments to the standards had no effect upon the settlement of the combination: Revoking the regulations related to the multistage control takeover and replacing them with the principle of valuation of the investment (stocks or shares packages of a subsidiary) held by the entity acquiring so far, at the fair value determined as at the date of the acquisition. The gains or losses arising from the revaluation are recognized in the Group s profit and loss account. New principles for the measurement of contingent consideration for the acquisition, which is recognized against the respective financial liabilities. A change in the fair value of a financial liability on subsequent balance sheet days has an influence on the Group s gains or losses. A change in the approach to the costs related to the carrying out of the combination, which, according to the standard amended, are recognized in the profit and loss account of the Group, and not as a component of the combination cost, and thus the Company goodwill, as it has been done so far.

16 The amended IFRS 3 was implemented by the Group on a prospective basis for combinations which took place within the period January 1 st 2010 September 30 th No restatement for comparative purposes was done. IAS 27 (amendment) Consolidated and separate financial statement The amended standard introduced amendments to the method of recognizing transactions between a parent company and minority shareholders. The acquisition or disposal of stocks or shares in a subsidiary which do not result in the parent company s losing control are recognized as equity transactions, and thus they do not have an effect upon the consolidated profit and loss account. As in the case of IFRS 3, the amended IAS 27 was implemented prospectively by the Group, thus no adjustments of the comparative periods was done. Since in the 1 st halfyear of 2010 no transactions with minority shareholders took place, the implementation of the amended standard had no effect upon the current reporting period presented in this summarised consolidated financial statement. Amendments to the IFRS following the annual improvement project ( the Annual Improvement Project 2009 ). Under the annual amendments to IFRS a number of minor amendments to the standards were introduced; attention should be paid to the one introduced to IAS 17 Leasing. Pursuant to IAS 17, land lease is approached in a different manner. So far this kind of lease has been classified as operating lease. Under the new approach, the classification of land lease as financial or operational shall be based on general principles. The amended regulations do not have an effect on this summarised consolidated financial statement. Error adjustment and amendments to the accounting principles In the summarised consolidated financial statement the presentation method in relation to noninventory payable invoices on the turn of the periods was changed from other liabilities to trade liabilities with maturity of up to 12 months. The amount of the adjustment as on December 31 st 2009 was PLN 111 thousand. 3. Significant events and transactions The following events took place in the period covered by this summarized interim financial statement: Suwary S.A. purchase of production assets from Unipet (machines, equipment and moulds for PET bottles manufacturing). The transaction concluded contributes to a more dynamic presence of Suwary S.A. in the PET bottles production in Poland. Suwary S.A. purchase of 78 shares in Kartpol Group Sp z o.o. from the shareholders Jerzy Marek Kamiński and Szczepan Kwiatek. The value of each transaction: PLN The total value of the both transactions: PLN

17 Suwary S.A. taking up 10 new shares in Kartpol Group Spółka z o.o. The transaction value PLN As at September 30 th 2010 Suwary S.A. holds 80% of shares in Kartpol Group Sp z o.o. Kartpol Group Sp z o.o. purchase of real property, Notary Deed Rep. A 10122/ Earning per share Basic earning per share is calculated according to the following formula: net earning per the shareholders of an entity divided by the weighted average number of ordinary shares in a given period Number of shares used as the denominator of the formula Weighted average number of ordinary shares Dilutive effect of convertible options upon the shares Weighted average diluted number of ordinary shares Continuing activity Profit (loss) on continuing activity Basic earning (loss) per share (PLN) Diluted earning (loss) per share (PLN) Discontinued operations Profit (loss) on discontinued operations Basic earning (loss) per share (PLN) Diluted earning (loss) per share (PLN) Continuing activity and discontinued operations Net profit (loss) Basic earning (loss) per share (PLN) Diluted earning (loss) per share (PLN) The weighted average number of shares in 2009 was computed as a difference between the total number of shares which comprised share capital and the number of own shares held by the Company = On 28 th June 2010 the own shares of the Company were sold, thus the weighted average number of own shares as at 30 th June 2010 was: (179/273)* /273* = Seasonality of operations The Company s operations do not have a seasonal nature.

18 6. Operating segments Operating segments are delimited by the Management Board on the basis the production lines which represent the main services and products provided by the Company. Each of the segments is managed separately within the management of the corresponding production line, taking into account the characteristics of the services provided/products manufactured which require different production processes, resources and approaches to their realization. As of the date of this summarized interim financial statement the Company delimits one operating segment. The financial result of this operating segment is based on the internal reports reviewed periodically by the Group, which analyses the operating segment results represented by profit (loss) on operations. Over the nine months of 2010 no changes in the Company s accounting policy occurred as to the delimitation of operating segments or the principles for the valuation of the segment revenues, financial results or assets which had been presented in the last annual consolidated financial statement of the Group. Revenues, financial results and assets of the operating segments Segment A For the period Revenues from external customers Revenues from the sales between segments Total revenues Segment operating result Assets of the segment reported For the period Revenues from external customers Revenues from the sales between segments Total revenues Segment operating result Assets of the segment reported For the period Revenues from external customers Revenues from the sales between segments Total revenues Segment operating result Assets of the segment reported Total

19 Reconciliation of the segment operating results with the result disclosed in the profit and loss account Segment operating result Adjustments Other revenues not allocated to the segments Other expenses not allocated to the segments () Exclusion of the result of transactions between segments Total adjustments Profit (loss) on operations Financial revenues Financial costs () (115) (41) (46) Profit (losses) before taxation

20 7. Tangible fixed assets The chart below shows purchases and disposals, as well as writedowns on tangible fixed assets Land Buildings and structures Machines and facilities Means of transport Other fixed assets Other fixed assets in process Total For the period to Net balance sheet value as at Acquisition following combination of business entities Increases (from acquisitions, manufacturing, leasing) Sale of subsidiary () Decreases (disposal, liquidation) () (40) (455) (495) Revaluation to fair value (+/) Depreciation () (194) (1 943) (94) (90) (2 321) Impairment losses () (62) (62) Reversal of revaluation writeoffs Net foreign exchange gains/losses from conversion (+/) Net balance sheet value as on For the period Net balance sheet value as at Acquisition following combination of business entities Increases (from acquisitions, manufacturing, leasing)

21 Sale of subsidiary () Decreases (disposal, liquidation) () (27) (27) (493) (547) Revaluation to fair value (+/) Depreciation () (193) (1 903) (117) (93) (2 306) Impairment losses () (62) (62) Reversal of revaluation writeoffs Net foreign exchange gains/losses from conversion (+/) Net balance sheet value as on For the period Net balance sheet value as at Acquisition following combination of business entities Increases (from acquisitions, manufacturing, leasing) Sale of subsidiary () Decreases (disposal, liquidation) () (17) (11) (2 223) (2 251) Revaluation to fair value (+/) Depreciation () (258) (2 566) (149) (144) (3 117) Impairment losses () (62) (62) Reversal of revaluation writeoffs Net foreign exchange gains/losses from conversion (+/) Net balance sheet value as on There occur no liabilities related to the purchase of tangible foxed assets or intangible assets.

22 8. Intangible assets Trademarks Patents and licences Software Development expenses Other intangibles Intangibles in progress Total For the period Net balance sheet value as at Acquisition following merger of business entities Increases (from acquisitions, manufacturing, leasing) 1 1 Sale of subsidiary () Decreases (disposal, liquidation) () Revaluation to fair value (+/) Amortization () (14) (14) Impairment losses () Reversal of revaluation writeoffs Net foreign exchange gains/losses from conversion (+/) Net balance sheet value as at For the period Net balance sheet value as at Acquisition following merger of business entities Increases (from acquisitions, manufacturing, leasing) Sale of subsidiary () Decreases (disposal, liquidation) ()

23 Revaluation to fair value (+/) Amortization () (34) (34) Impairment losses () Reversal of revaluation writeoffs Net foreign exchange gains/losses from conversion (+/) Net balance sheet value as at For the period Net balance sheet value as at Acquisition following merger of business entities Increases (from acquisitions, manufacturing, leasing) Sale of subsidiary () Decreases (disposal, liquidation) () Revaluation to fair value (+/) Amortization () (40) (40) Impairment losses () Reversal of revaluation writeoffs Net foreign exchange gains/losses from conversion (+/) Net balance sheet value as at

24 9. Writedowns on assets Write downs of inventories Balance at the beginning of the period Writedowns recognized as expenses incurred in the period 41 Reversed writedowns in the period () (31) (32) Other increases/decreases (net foreign exchange differences from conversion) Balance as at the end of the period Writedowns of loans and credits Balance at the beginning of the period Writedowns recognized as expenses incurred in the period Reversed writedowns in the period () (109) (257) (572) Writedowns used () (88) (60) (60) Other increases/decreases (net foreign exchange differences from conversion) (17) (12) 4 Balance as at the end of the period Share capital Share capital as at the balance sheet date Number of shares Nominal value of shares (PLN) Share capital Shares issued in the respective reporting periods: Shares by series/issue Nominal value of series/issue Number of shares Price of issue (PLN) Series/issue registration date Share capital as at X X.. Share capital as at X X.. Share capital as at X X.. Share capital as at X X 11. Dividends No dividends were paid in the period covered by this summarised interim consolidated financial statement or the period comparable.

25 12. Issue and redemption of debentures No such events occurred in the period covered by this summarised interim consolidated financial statement or the period comparable. 13. Breach of contract (loans, credits) No such event occurred in the period covered by this summarised interim consolidated financial statement. 14. Provisions The provisions recognized in the summarized interim financial statement and their changes in subsequent periods were as follows: Provision for employee benefits Restructuring costs Other provisions, including: Loss on Litigations construction Other agreements For the period Balance at the beginning of the period Increase in provision recognized as expense incurred in the period Release of provision recognized as revenue in the period () (1) (203) (26) (229) Application of provision () Increase following merger of business entities Other increases/decreases (net foreign exchange differences from conversion) Balance as at For the period Balance at the beginning of the period Increase in provision recognized as expense incurred in the period Release of provision recognized as revenue in the period () (52) (52) Application of provision () Increase following merger of business entities Other increases/decreases (net foreign exchange differences from conversion) Balance as at For the period Balance at the beginning of the period Increase in provision recognized as expense incurred in the period Release of provision recognized as revenue in the period () (52) (52) Application of provision () Increase following merger of business entities Other increases/decreases (net foreign exchange differences from conversion) Balance as at Total

26 Within 9 months of 2010 the following provisions were released: 1. concluding an agreement with the AGENTUR company PLN 203 thousand 2. decreasing the provision for claims PLN 26 thousand 15. Contingent liabilities The value of contingent liabilities as at the end of individual periods was as below: Towards other entities: Liability payment guarantee Guarantee granted Guarantees and bonds for contracts for construction services Disputes and litigations Disputes and litigations against the Revenue Office Other contingent liabilities Other entities, total: 6 Total contingent liabilities 6 Description of litigations The suit filed by an exemployee. The subject of the proceedings is a claim for payment in connection with ban on competition. The value of the matter of proceedings amounts to PLN 102 thousand. A provision has been set for it. In consideration of the change in the value of the matter of proceedings the case was referred to the District Court of Łódź. The suit filed by the District Attorney in Łódź acting on behalf of SUWARY S.A. for declaration of nullity of the agreement dated 12 th December 2001 concluded between SUWARY S.A. and Suwary Packing Sp z o.o. called The Cooperation Agreement. The case is conducted in the District Court of Łódź, X Commercial Department, file number X GC 760/04. No provision has been set up for the case. The proceedings in the subject matter have been suspended. In the opinion of the Management Board there are no grounds for setting up a provision. 16. Combination of business entities Business name and registered office of the entity acquired Date of acquisition Percentage of equity instruments with voting rights Acquiring party Consideration Minority shareholders Net assets of the acquired entity (fair value) Goodwill (+)/ profit () Retained earnings (combination under joint control) Kartpol Group Sp.z o.o., ul. Łukasiewicza 11D, Wołomin Suwary Tech Sp. z o.o., ul. Piotra Skargi 45/47,95200 Pabianice On September 20 th 2010 the Parent Company acquired 80% of equity instruments in Kartpol Group Sp z o.o. with its registered office in Wołomin, Wołomin, ul. Łukasiewicza 11D, which conducts its business within one operating segment. The Parent Company

27 completed the acquisition with the aim to enhance the Group s position in the packaging market and utilise the workload capacity of the Group. For simplicity reasons is has been assumed that September 30 th 2010 is the date of the business entities combination. Between September 20 th 2010 and September 30 th 2010 there were no material transactions in the subsidiary. The initial settlement of the business units combination should include the identification and assessment of the fair value which can be allocated to the identifiable assets, liabilities and business combination costs. Due to the fact that no reliable valuation of assets has been completed and that the accounting principles applied by the subsidiary are not adjusted to the principles resulting from IAS/IFRS applied by the parent company, the Parent Company settled the initial acquisition provisionally applying the book value of assets. The adjustment of the applied values resulting from the completion of the settlement will be recognized within 12 months of the date of the takeover in accordance with IFRS 3 (Business combination). The purchase price of the shares purchased from the former owners amounted to PLN thousand. The acquisition price for the 10 newlycreated shares amounted to PLN thousand. Also, two preliminary contracts were concluded for the purchase of the remaining 20% of the shares in Kartpol Group Sp z o.o. THE SETTLEMENT OF THE BUSINESS COMBINATIONS COMPLETED WITHIN JULY 1 ST 2010 SEPTEMBER 30 TH 2010 Kartpol Group Sp. Z o.o. Fair value as at the acquisition date Adjustments Balance sheet value prior to the business combination Assets Intangible assets Tangible fixed assets Deferred tax assets 5 5 Inventories Receivables and loans Other assets Cash and cash equivalents Total assets Liabilities Deferred tax liability 7 7 Reserves Credits and loans Trade liabilities Other liabilities Total liabilities Net assets fair value Goodwill (+) / Profit () Consideration for the business entity acquired: Minority: Minority interest 2 093

28 Acquiring party Cash Equity instruments of the acquiring party Liabilities towards the former owners Contingent consideration Fair value of the investments owned before the acquisition (a multistage acquisition) Other Extra costs of the acquisition completion charged to the profits (losses) of the acquiring party. Due to the aforementioned provisional settlement no difference occurred between the assets fair value and the balance sheet value as at the business combination date. REVENUES AND PROFITS OF THE BUSINESS ENTITIES ACQUIRED WITHIN THE REPORTING PERIOD Data after the acquisition date recognized in the Group Profit & Loss Account Data on the period from to Revenues Net profit Revenues Net profit Kartpol Group Sp. z o.o Total NET EXPENDITURES FOR ACQUISITION OF SUBSIDIARIES From to Consideration paid () (20 015) Cash and cash equivalents acquired with a subsidiary 302 Net expenditures (19 713) 17. Discontinued operations Not applicable. 18. Transactions with related entitles The table below shows the transactions with related entities reported in the summarized financial statement: Managerial staff benefits Shortterm employee benefits Benefits related to the termination of an employment contract Payment in own shares Other benefits Total

29 Sale to: Parent entity Subsidiary Associated entity Joint venture Key executive staff Revenue from operations from to from to Receivables Other related entities Total Purchase from Parent entity Subsidiary Associated entity Joint venture Key executive staff Purchase from to from to Liabilities Other related entities Total There occur no loans granted or drawn. 19. Events after the balance sheet date After no events occurred which would need to be reported in the summarized quarterly financial statement. 20. Other significant increase/decrease in assets, liabilities, profits and costs No such events occurred. 21. Other prescribed information (selected financial data converted into euro) In the periods covered by the summarized financial statement in order to convert the selected financial data the following average PLN/EUR exchange rates established by the Polish National Bank were applied: exchange rate applicable on the last day of the accounting period: PLN/EUR , PLN/EUR , PLN/EUR

30 average exchange rate calculated as the arithmetic average of the exchange rates applicable on the last day of each month in a given period: PLN/EUR , PLN/EUR , PLN/EUR the highest and the lowest exchange rate applicable in each period PLN/EUR and PLN/EUR , PLN/EUR and PLN/EUR , PLN/EUR and PLN/EUR The basic items of the consolidated balance sheet, consolidated profit and loss account, and consolidate cash flow statement converted into EUR are shown in the table below: from to PLN thousand from to EUR thousand Profit and loss account Revenues from sales Profit (loss) on operations Profit (loss) before taxation Net profit (loss) Net profit (loss) falling to the shareholders of the Parent Company Earning per share (PLN) 2,16 4,15 4,48 0,54 0,94 1,03 Diluted earning per share (PLN) 2,16 4,15 4,48 0,54 0,94 1,03 PLN / EUR average exchange rate in the period X X X 4,0027 4,3993 4,3406 Cash flow statement Net cash from operations Net cash from investment Net cash from financial activity Net increase/decrease in cash and cash equivalents PLN / EUR average exchange rate in the period (21 723) (605) (2 586) (5 427) (138) (596) (584) (775) 670 (133) (179) (7 005) (1 750) X X X 4,0027 4,3993 4, PLN thousand EUR thousand Balance sheet Assets Longterm liabilities Shortterm liabilities Equity Equity falling to the shareholders of the Parent Company PLN / EUR exchange rate at the end of the period X X X 3,9870 4,2226 4,1082

31 22. Approval for publication The summarized quarterly financial statement covering the period of 3 months ending on (including comparative data) was approved for publication by the Management Board of the Company on November 4 th Signatures of all the members of the Management Board: Date First name and surname Function Signature Walter Kuskowski Iwona Menes Malinowska President of the Management Board VicePresident of the Management Board Signatures of the persons responsible for the preparation of the summarized quarterly consolidated financial statement Date First name and surname Wioletta Kubicz Kwiatkowska Function Chief Accountant Signature

32 Suwary Group Summarised quarterly separate financial statement For the period July 1 st 2010 September 30 th 2010 Pabianice

33 ASSETS Fixed assets Goodwill Intangible assets Tangible fixed assets Investment properties Investments in subsidiaries Investments in related entities Receivables and loans Derivative financial instruments Other longterm financial assets Longterm prepayments and accruals Deferred tax assets Fixed assets Current assets Inventories Construction contracts receivables Trade receivables and other receivables Current tax assets Loans Derivative financial instruments Other shortterm financial assets Shortterm prepayments and accruals Cash and cash equivalents Fixed assets classified as held for sale Current assets Total assets Liabilities and shareholders equity Equity Share capital Own shares () (665) (665) Share premium account Other capital reserves Retained earnings: profit (loss) carried forward net profit (loss) attributable to the shareholders of the parent entity Equity Liabilities Longterm liabilities

34 Credits, loans and other debt instruments Financial lease Derivative financial instruments Other liabilities Deferred income tax liability Liabilities and reserves for employee benefits Other longterm reserves Longterm accrued expenses and deferred income Shortterm creditors Trade payables to related entities and other creditors Current income tax payable 120 Credits, loans and other debt instruments Financial lease Derivative financial instruments Liabilities and reserves for employee benefits Other shortterm reserves Shortterm accrued expenses and deferred income Creditors related to assets classified as held for sales Shortterm creditors Total creditors Total liabilities and shareholders equity

35 PROFIT & LOSS ACCOUNT Continuing activity Revenues from sales Revenues from sales of products Revenues from sales of services Revenues from sales of goods and materials Selling costs Costs of products sold (including services) Costs of goods and materials sold Gross profit (loss) on sales Selling costs Overheads Other operating income Other operating costs Profit (loss) on sale of subsidiaries (+/) Operating profit (loss) Financial income Financial costs Share in profit (loss) of the entities valued with the equity method (+/) Profit (loss) before taxation Income tax Net profit (loss) from continuing activity Discontinued operations Net profit (loss) on discontinued operations Net profit (loss)

36 from to from to Continuing activity Revenues from sales Revenues from sales of products Revenues from sales of services Revenues from sales of goods and materials Selling costs Costs of products sold Costs of services sold Costs of goods and materials sold Gross profit (loss) on sales Selling costs Overheads Other operating income Other operating costs Profit (loss) on sale of subsidiaries (+/) Operating profit (loss) Financial income Financial costs 43 8 Share in profit (loss) of the entities valued with the equity method (+/) Profit (loss) before taxation Income tax Net profit (loss) from continuing activity Discontinued operations Net profit (loss) from discontinued operations Net profit (loss) NET PROFIT (LOSS) PER ORDINARY SHARE (PLN) From continuing operations basic return diluted return From continuing and discontinued activities basic return diluted return

37 STATEMENT OF COMPREHENSIVE INCOME Net profit (loss) Other comprehensive incomes Revaluation of fixed assets Financial assets available for sale profits (losses) disclosed in the period under other comprehensive assets amounts transferred to the income statement Cash flow hedges profits (losses) disclosed in the period under other comprehensive incomes amounts transferred to the income statement amounts recognised at the initial value of the items hedged Income tax on the components of other comprehensive incomes Other comprehensive incomes after taxation Total comprehensive incomes from to from to Net profit (loss) Other comprehensive incomes Revaluation of fixed assets Financial assets available for sale profits (losses) disclosed in the period under other comprehensive assets amounts transferred to the income statement Cash flow hedges profits (losses) disclosed in the period under other comprehensive incomes amounts transferred to the income statement amounts recognised at the initial value of the items hedged

38 Income tax on the components of other comprehensive incomes Other comprehensive incomes after taxation Total comprehensive incomes

39 STATEMENT OF CHANGES IN EQUITY Share capital Own shares () Share premium Other capitals Retained earnings Total equity Balance as at (665) Changes in accounting principles Adjustment of fundamental error Balance after changes (665) Changes in equity in the period Issue of shares Issue of shares in connection with exercising the option (program of payment by shares) Option valuation (program of payment by shares) Changes in the group structure (transactions with minority shareholders) Dividends Sale of own shares Transfer of financial result to capital (3 529) Total transactions with owners (3 529) Net profit for the period Other comprehensive incomes after taxation for the period Total comprehensive incomes Transfer to retained earnings (sale of revaluated

40 tangible fixed assets) Balance as at

41 STATEMENT OF CHANGES IN EQUITY (continued) Share capital Own shares () Share premium Other capitals Retained earnings Total equity Balance as at (665) Changes in accounting principles Adjustment of fundamental error Balance after changes (665) Changes in equity in the period Issue of shares Issue of shares in connection with exercising the option (program of payment by shares) Option valuation (program of payment by shares) Changes in the group structure (transactions with minority shareholders) Dividends Transfer of financial result to capital (7 260) Total transactions with owners (7 260) Net profit for the period Other comprehensive incomes after taxation from to Total comprehensive incomes Transfer to retained earnings (sale of revaluated fixed assets) Balance as at (665)

42

43 STATEMENT OF CHANGES IN EQUITY (continued) Share capital Own shares () Share premium Other capitals Retained earnings Total equity Balance as at (665) Changes in accounting principles Adjustment of fundamental error Balance after changes (665) Changes in equity in the period Issue of shares Issue of shares in connection with exercising the option (program of payment by shares) Option valuation (program of payment by shares) Dividends Transfer of financial result to capital (7 260) Total transactions with owners (7 260) Net profit for the period Other comprehensive incomes after taxation from to Total comprehensive incomes Transfer to retained earnings (sale of revaluated fixed assets) Balance as at (665)