PROTEKTOR CAPITAL GROUP

Transcription

1 + PROTEKTOR CAPITAL GROUP INTERIM ABBREVIATED CONSOLIDATED FINANCIAL STATEMENT OF PROTEKTOR CAPITAL GROUP EXTENDED BY ISSUER S INTERIM ABBREVIATED FINANCIAL STATEMENT FOR THE I HALF OF YEAR 2014 drawn up by the parent entity PROTEKTOR S.A. (Joint-Stock Company), Lublin, ul. Kunickiego August 2014

2 TABLE OF CONTENTS: CONSOLIDATED FINANCIAL STATEMENT (CONSOLIDATED BALANCE SHEET)... 4 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (CONSOLIDATED INCOME STATEMENT)... 6 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (MULTI-STEP VARIANT)... 8 CONSOLIDATED CASH FLOW STATEMENT (CONSOLIDATED CASH FLOW STATEMENT) CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONSOLIDATED STATEMENT OF CHANGES IN EQUITY) EXPLANATORY NOTES TO THE FINANCIAL STATEMENT OF PARENT ENTITY STATEMENT OF FINANCIAL POSITION (BALANCE SHEET) OF THE PARENT ENTITY STATEMENT OF COMPREHENSIVE INCOME (INCOME STATEMENT) OF THE PARENT ENTITY STATEMENT OF COMPREHENSIVE INCOME (INCOME STATEMENT) OF THE PARENT ENTITY CONSOLIDATED CASH FLOW STATEMENT (CASH FLOW STATEMENT) OF THE PARENT ENTITY STATEMENT OF CHANGES IN EQUITY (STATEMENT OF CHANGES IN EQUITY) OF THE PARENT ENTITY EXPLANATORY NOTES TO THE FINANCIAL STATEMENTOF PARENT ENTITY ASSUMPTION OF CONTINUED OPERATIONS ADDITIONAL INFORMATION OTHER INFORMATION Page 2 of 86

3 STATEMENT OF THE MANAGEMENT BOARD ON THE RELIABILITY OF DRAWING UP THE FINANCIAL STATEMENTS We hereby state that, according to our best knowledge, the mid-year unitary and consolidated financial statement and comparable data have been drawn up in accordance with the binding accounting principles, and they reflect, in a true, reliable and clear manner, economic and financial position of PROTEKTOR S.A. and Protektor Capital Group and its financial result, and the statement of the Management Board contains a true reflection of development and accomplishments and position of Protektor Capital Group, including description of basic risks and hazards. PIOTR MAJEWSKI PIOTR SKRZYŃSKI BOARD MEMBER PRESIDENT OF THE MANAGEMENT BOARD Page 3 of 86

4 DECLARATION OF THE MANAGEMENT BOARD ON ENTITY AUTHORIZED TO AUDIT FINANCIAL STATEMENTS We hereby state that the entity authorized to audit financial statements, reviewing the abbreviated unitary and consolidated financial statement for the period from to has been selected as specified by law and it is "Doradca" Zespół Doradców- Finansowo Księgowych Spółka z o.o. ("Doradca" Team of Financial-Accounting Advisors Limited Liability Company) entered on the list of entities authorized to audit financial statements - under item 232. This entity and the chartered auditor conducting this audit meet conditions for issuing impartial and independent report on audit, in accordance with relevant regulations of the domestic law. PIOTR MAJEWSKI PIOTR SKRZYŃSKI BOARD MEMBER PRESIDENT OF THE MENAGEMENT BOARD Page 4 of 86

5 CONSOLIDATED FINANCIAL STATEMENT (CONSOLIDATED BALANCE SHEET) CONSOLIDATED FINANCIAL STATEMENT (BALANCE SHEET) AS AT AND Assets Notes Fixed assets Intangible assets 2, Good will taken over under merger of business entities - - Tangible fixed assets Investment real estate - - Investment in subordinate entities - - Investments in associates settled with the equity method - - Other long-term financial assets from affiliates from other entities 9 9 Long-term receivables from affiliates from other entities - - Deferred income tax assets Long-term prepayments - - Current assets Inventory Receivables from clients under works resulting from construction service / long-term service contracts from affiliates from other entities - - Trade receivables from affiliates from other entities Receivables under current income tax Other short-term receivables from affiliates from other entities Other short-term financial assets from affiliates from other entities - - Cash and equivalents Short-term prepayments Fixed assets classified as intended for sale Total assets Page 5 of 86

6 Liabilities Notes Own equity Equity attributable to shareholders of the parent entity Share capital Own shares - - Supplementary capital from agio Capital from valuation of hedging transactions and exchange rate differences from consolidation Other capitals 13 (433) Undivided financial result profit (loss) from previous years net profit (loss) of the current year attributable to shareholders of the parent entity Non-controlling shares Liabilities Long-term liabilities Long-term credits and loans from affiliates from other entities Other long-term financial liabilities Other long-term liabilities from affiliates from other entities Deferred income tax provision Provisions for liabilities under employee benefits Other long-term provisions - - Government subsidies - - Long-term prepayments - - Short-term liabilities Short-term credits and loans towards affiliates towards other entities Other short-term financial liabilities Trade liabilities towards affiliates towards other entities Liabilities under current income tax Other short-term liabilities towards affiliates towards other entities Provisions for liabilities under employee benefits Other short-term provisions Government subsidies - - Short-term prepayments Liabilities related to fixed assets intended to sales - - Total liabilities Page 6 of 86

7 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (CONSOLIDATED INCOME STATEMENT) CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (CONSOLIDATED INCOME STATEMENT) FOR THE PERIOD FROM TO AND FROM TO (MULTI-STEP VARIANT) For period For period Notes Continued operations Sales revenues 1, from affiliates - - Product sale revenue Revenue from sale of services Product, goods and materials sale revenue Sales costs 1, 19 (31 723) (32 990) - from affiliates - - Cost of sold products 19 (31 559) (32 801) Cost of sold services 19 (40) (11) Cost of goods and materials sold 19 (124) (178) Gross profit (loss) on sales Sale costs 19 (4 577) (4 826) Overheads 19 (10 109) (9 964) Other operating revenues Other operating expenses 19 (237) (398) Share in profits of entities settled by the equity method - - Costs of restructuring - - Profit (loss) from operations Financial revenues Financial costs 19 (203) (498) Other profits (loss) from investments - - Profit (loss) before taxation Income tax 18 (2 879) (2 655) Net profit (loss) from continued operations Abandoned operations Net loss/profit on abandoned operations - - Net profit (loss) Net profit (loss) attributable to: - shareholders of the parent entity minority shareholders (46) 138 Other comprehensive income: (711) The items, which in the future can be reclassified to the profit and loss account, including: exchange rate differences from recalculation of foreign companies (711) income tax relating to other comprehensive income The items, which in the future cannot be reclassified to the profit and loss account - - Total comprehensive income: Total comprehensive income attributable to: - - shareholders of the parent entity minority shareholders (289) 4 Page 7 of 86

8 NET PROFIT (LOSS) PER ORDINARY SHARE For period For period PLN / share PLN / share Net profit (loss) on continued activities Net profit (loss) on continued operations and abandoned operations Weighted average number of ordinary shares Weighted average diluted number of ordinary shares on continued operations - basic 0,16 0,13 - diluted 0,16 0,13 on continued operations and abandoned operations - basic 0,16 0,13 - diluted 0,16 0,13 Page 8 of 86

9 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (MULTI-STEP VARIANT) CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (CONSOLIDATED INCOME STATEMENT) FOR THE PERIOD FROM TO AND FROM TO (MULTI-STEP VARIANT) For period For period Notes from to from to Continued operations Sales revenues 1, from affiliates - - Product sale revenue Revenue from sale of services Product, goods and materials sale revenue Sales costs 1, 19 (15 419) (17 277) - from affiliates - - Cost of sold products 19 (15 301) (17 191) Cost of sold services 19 (34) (6) Cost of goods and materials sold 19 (84) (80) Gross profit (loss) on sales Sale costs 19 (2 382) (2 435) Overheads 19 (5 213) (5 203) Other operating revenues Other operating expenses 19 (47) (259) Share in profits of entities settled by the equity method - - Costs of restructuring - - Profit (loss) from operations Financial revenues Financial costs 19 4 (376) Other profits (loss) from investments - - Profit (loss) before taxation Income tax 18 (1 409) (1 138) Net profit (loss) from continued operations Abandoned operations - Net loss on abandoned operations - - Net profit (loss) Net profit (loss) attributable to: shareholders of the parent entity minority shareholders (58) 58 Other comprehensive income: (422) exchange rate differences from recalculation of foreign companies (422) income tax relating to other comprehensive income - - Total comprehensive income: Total comprehensive income attributable to: shareholders of the parent entity minority shareholders (190) (17) Page 9 of 86

10 NET PROFIT (LOSS) PER ORDINARY SHARE For period from to PLN / share For period from to PLN / share Net profit (loss) on continued activities Net profit (loss) on continued operations and abandoned operations Weighted average number of ordinary shares Weighted average diluted number of ordinary shares on continued operations - basic 0,07 0,07 - diluted 0,07 0,07 on continued operations and abandoned operations - basic 0,07 0,07 - diluted 0,07 0,07 Page 10 of 86

11 CONSOLIDATED CASH FLOW STATEMENT (CONSOLIDATED CASH FLOW STATEMENT) CONSOLIDATED CASH FLOW STATEMENT FOR THE PERIOD FROM TO AND FROM TO (INDIRECT METHOD) For period For period Cash flows from operating activities Net profit before taxation Adjustments: Depreciation of intangible assets Write-downs under impairment of goodwill - - Write-downs under impairment of tangible fixed assets - - Depreciation of tangible fixed assets (Profit) loss on disposal of tangible fixed assets - 20 (Profit) loss on disposal of financial assets available for sale - - Profits (loss) from investment activities - - Loss of control over net assets of the subsidiary - - Share in profits (losses) of associated companies - - Costs of interest Received interest - - Received dividends - - Cash from operating activities before taking into consideration changes in working capital Change in inventory (1 556) (1 035) Change in receivables (4 816) (4 598) Change in short-term liabilities Change in provisions and prepayments (83) (104) Other adjustments (695) (334) Cash generated in the course of operating activities Paid interest 10 - Paid income tax (2 878) (2 629) Net cash from operating activities (179) Page 11 of 86

12 Cash flows from investment activities For period For period Outflows for purchase of intangible assets - - Inflows from disposal of intangible assets - - Outflows for purchase of tangible fixed assets (1 100) (816) Inflows from sale of tangible fixed assets 2 46 Outflows for purchase of investment real estate - - Inflows from disposal of investment real estate - - Outflows for purchase of financial assets available for sale - - Inflows from disposal of financial assets available for sale - - Outflows for purchase of financial assets held for trading - - Inflows from disposal of financial assets held for trading - - Loss of control over net assets of the subsidiary, after considering lost cash - - Inflows from disposal of subsidiaries - - Revenues from received government subsidies - - Granted loans - - Received repayments of loans granted - - Received interest - - Received dividends - - Net cash used in investment activities (1 098) (770) Cash flows from financial activities Net inflows from issuance of shares - - Purchase of own shares - - Inflows from issue of debt securities - - Repurchased debt securities - - Income from incurring credits and loans Credit and loan repayments (1 420) (422) Repayment of liabilities under financial lease (54) (28) Interest paid (181) (265) Paid dividends - - Other adjustments - - Net cash from financial activities (1 414) Change in net cash and its equivalents (1 099) Cash and equivalents at the beginning of period Change under foreign exchange differences - - Cash and equivalents at the end of period Page 12 of 86

13 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONSOLIDATED STATEMENT OF CHANGES IN EQUITY) STATEMENT OF CHANGES IN EQUITY IN THE PERIOD FROM TO Capital attributable to shareholders of the parent entity NOTE Share capital Other capitals Exchange rate differences from conversion Undivided financial result Tota Minority shares Total equity Balance Change in accounting principles (policy) Error correction Balance after changes Changes in equity in the period Differences under rounding (2) (2) (2) Investments available for sale: profits (loss) under valuation charged to equity transferred to net profit (loss) on sale - - Instruments hedging cash flows: profits (loss) charged to equity profits (loss) transferred to the financial result for the period profits (loss) covered by the valuation of the balance sheet items hedged - - Exchange rate differences from valuation of entities operating abroad 13 (187) (294) (468) (243) (711) Tax related to items presented in equity or transferred from capital - - Net profit presented directly in equity - 13 (187) (296) (470) (243) (713) Net profit for the period (46) Total profit and loss included in the period (187) (289) Dividends (5 136) (5 136) (5 136) Issued share capital - - Issued options convertible into shares - - Change in structure in the group of companies (purchase/sale) - - Division of the financial result (101) Balance Page 13 of 86

14 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY IN THE PERIOD FROM TO Capital attributable to shareholders of the parent entity NOTE Share capital Other capitals Exchange rate differences from conversion Undivided financial result Total Minority shares Total equity Balance (83) Change in accounting principles (policy) Error correction Balance after changes (83) Changes in equity in the period Differences under rounding Investments available for sale: profits (loss) under valuation charged to equity transferred to net profit (loss) on sale Instruments hedging cash flows: profits (loss) charged to equity profits (loss) transferred to the financial result for the period profits (loss) covered by the valuation of the balance sheet items hedged Exchange rate differences from valuation of entities operating abroad (706) (134) Results entered in equity Net profit presented directly in equity (706) (134) Net profit for the period Total profit and loss included in the period Dividends Issued share capital Loss of control Prabos plus a.s Revaluation reserve - concerning liquidation Division of the financial result (414) Balance Page 14 of 86

15 EXPLANATORY NOTES TO THE FINANCIAL STATEMENT OF PARENT ENTITY NOTE NO. 1 OPERATIONAL SEGMENTS Operations of Protektor Capital Group are carried out within operational segments that are strategic business entities of the whole Group. They have been separated based on Abeba Capital Group and PROTEKTOR S.A. Operations of particular segments cover mainly production and sale of working, protective, military and trekking footwear. The Management Board monitors separately results of the segments to make decisions concerning allocation of resources, effects of allocation and company's results. Segment results are assessed at the level of net profit (loss). Accounting principles applied in the reporting segments are the same as accounting policy of Protektor Capital Group. The segments have not been subject to combining. The Group does not have other segments that have been excluded from reporting requirements with regard to operational segments. OPERATIONAL SEGMENTS OF PROTEKTOR CAPITAL GROUP OPERATIONAL SEGMENTS DATA FOR THE PERIOD FROM TO Abeba Capital Group PROTE- KTOR S.A. TOTAL Reconciling items Consolidated value Total revenues (1 770) Export sales Sale between segments (1 770) - Total costs (1 721) Segment result (49) Costs/revenues non-assigned (12 114) (2 246) (14 360) 58 (14 302) Result on operating activities (1 068) Financial revenues Financial costs (54) (154) (208) 5 (203) Other adjustments - Share of the entity in profits and losses of associates settled with the use of the equity method Result before taxation (1 125) Income tax (2 866) (13) (2 879) (2 879) Net result - continued operations (1 138) Net result - abandoned operations - - Net result (1 138) Total assets (19 085) Segment's assets Investment in subordinate entities (22 840) - including trademark - GK Abeba Other - (38) (38) Non-assigned assets of the whole group (879) - The segment's liabilities (934) Page 15 of 87

16 Investments in associates or joint ventures consolidated with the use of the equity method Intangible assets depreciation Depreciation of tangible fixed assets OPERATIONAL SEGMENTS - DATA FOR THE PERIOD FROM TO Abeba Capital Group PROTE- KTOR S.A. TOTAL Reconciling items Consolidate d value Total revenues (546) Export sales Sale between segments (546) - Total costs (561) Segment result Costs/ revenues non-assigned (12 331) (2 004) (14 335) 37 (14 298) Result on operating activities (988) Financial revenues (126) 419 Financial costs (100) (234) (334) (164) (498) Other adjustments Share of the entity in profits and losses of associates settled with the use of the equity method Result before taxation (841) (238) Income tax (2 629) (26) (2 655) - (2 655) Net result - continued operations (867) (238) Net result - abandoned operations Net result (867) (238) Total assets (22 417) Segment's assets Investment in subordinate entities (22 840) - including trademark - GK Abeba Other (40) - Non-assigned assets of the whole group (4 209) - The segment's liabilities (4 486) Investments in associates or joint ventures consolidated with the use of the equity method Intangible assets depreciation Depreciation of tangible fixed assets Protektor Capital Group operates in the following geographical areas that are seats of particular entities of the Group: Poland, Germany, France, Moldova (Transnistria). Revenues from external customers and information on assets from segments with breakdown into particular geographical are operations of the Group are presented below. Page 16 of 86

17 GEOGRAPHICAL AREAS AT THE OPERATIONAL SEGMENTS DATA FOR THE PERIOD FROM TO Segments Poland Germany Other European Other Total Total revenues Segment's assets GEOGRAPHICAL AREAS AT THE OPERATIONAL SEGMENTS DATA FOR THE PERIOD FROM TO Segments Poland Germany Other European Other Total Total revenues Segment's assets In the reporting period, the Protektor Capital Group did not obtain revenue from transactions with external single client that would constitute 10 or more percent of total revenues of the Group. NOTE NO. 2 INTANGIBLE ASSETS Table no. 2.1 INTANGIBLE ASSETS AS AT AND manufactured on total net value, their own total net value, including: including: manufactured on their own Trade marks Patents and licenses Computer software Costs of development works Other intangible assets Net balance sheet value Intangible assets in progress Advances for intangible assets Total intangible assets Classification of intangible assets as intended for sale Intangible assets Table no. 2.2 INTANGIBLE ASSETS IN THE PERIOD FROM TO AND FROM TO (EXCLUDING INTANGIBLE ASSETS IN PROGRESS) Trade marks Patents and licenses Page 17 of 86 Computer software Costs of development works Other intangible assets Net balance sheet value Increase due to merger of business entities Decrease due to sale of subsidiary (-) Increases due to purchase Decreases due to sale (-) Increases or decreases resulting from revaluation Impairment write-downs (-) Total

18 Reversal of write-downs Depreciation (-) - - (57) - (100) (157) Net exchange rate differences from recalculation of the financial statement into the currency of presentation Other changes Net balance sheet value Net balance sheet value Increase due to merger of business entities - Decrease due to sale of subsidiary (-) - Increases due to purchase - Decreases due to sale (-) - Increases or decreases resulting from revaluation - Impairment write-downs (-) - Reversal of write-downs - Depreciation (-) (34) (50) (84) Net exchange rate differences from recalculation of the financial statement into the currency of presentation 3 3 Other changes - Net balance sheet value roku Table no. 2.3 INTANGIBLE ASSETS IN THE PERIOD FROM TO (EXCLUDING INTANGIBLE ASSETS IN PROGRESS) Other Costs of Patents and Computer intangible Trade marks development Total licenses software assets works As at Gross balance sheet value Total previous amortizations and write-downs - - (593) - (263) (856) Net balance sheet value As at Gross balance sheet value Total previous amortizations and write-downs (627) (310) (937) Net balance sheet value a) reasons for impairment write-downs and the manner of determination of the recovered value of intangible assets In I half of year 2014, no write-downs were made due to impairment of intangible assets b) segments in which the phenomenon of impairment of intangible assets were occurred Not applicable c) periods of use or used depreciation rates (with breakdown into particular groups of assets) Page 18 of 86

19 Intangible assets are depreciated according to the estimated period of economic usability, including: - licenses, patents - 2 years, - software - 5 years. d) the applied depreciation methods (into particular groups of assets) The Group uses the linear method with annual depreciation rates. e) the presence and balance sheet values of intangible values, in relation to which the legal title of the business entity is limited, and balance sheet values of intangible assets constituting security of liabilities (into particular groups of assets) Not applicable f) the amount of liabilities to purchase in the future intangible assets Not applicable g) amount of R&D expenses included as cost in a given period Not applicable Intangible assets has been included the value of trademarks of the taken over Abeba Spezialschuh- Ausstatter GmbH on the date of acquisition. This value was estimated by a property expert in the amount of EUR. To convert, the purchase rate was used of the leading bank the day of purchase 3,7402. Value in PLN is PLN. NOTE NO. 3 GOODWILL OF THE TAKEN OVER COMPANY UNDER MERGING BUSINESS UNITS / PURCHASE AT A BARGAIN PRICE Purchase 75 % of shares in Abeba Group In 2007, PROTEKTOR S.A. purchased 75 % of shares in Abeba Capital Group for the amount of PLN. As at the date of purchase, fair value of net assets of Abeba Capital Group amounted to PLN. The value of assets attributable to the parent entity amounted to 75% of , namely PLN Net assets attributable to the Group of Companies: PLN Net assets attributable to non-controlling shares: PLN. Goodwill of ABEBA from consolidation: = PLN Goodwill of companies of Abeba Group consisted, to a significant extent, of the value of trademarks. This value was estimated by a property expert in the amount of EUR. To convert into PLN, the purchase rate was used of the leading bank, i.e. Bank Millenium S.A., the day of purchase PLN/EUR. The value in PLN is PLN. 75% of the value of trademark, i.e PLN, were excluded from goodwill of ABEBA from consolidation and included into intangible assets. According to 56 of IFRS 3, on this account surplus was created, in the amount of PLN and was entered in the financial result. Purchase other 25 % of shares in Abeba Group In 2009, PROTEKTOR S.A. purchased 25 % of shares in Abeba Capital Group for the amount of PLN. As at the date of purchase of other 25%, fair value of net assets of Abeba Capital Group amounted to PLN. The value of assets purchased by the parent entity amounted to 25% of , namely PLN. Goodwill of Abeba Capital Group from consolidation: = PLN Page 19 of 86

20 25% of value of the trademark, i.e PLN, were excluded from goodwill of Abeba Capital Group from consolidation and included in intangible assets. According to 56, IFRS 3, on this account surplus was created in the amount of PLN and was entered in the financial result. NOTE NO. 4 TANGIBLE ASSETS Table no. 4.1 TANGIBLE FIXED ASSETS AS AT AND Land - Buildings and objects Machinery and equipment Means of transport Other tangible fixed assets Net carrying value Tangible fixed assets under construction 27 - Fixed asset advance payments - Total tangible fixed assets Tangible fixed assets classified as for sale - Tangible fixed assets Table no. 4.2 TANGIBLE FIXED ASSETS CHANGES IN PERIOD FROM TO AND FROM TO (EXCLUDING FIXED ASSETS UNDER CONSTRUCTION) Land Buildings and structures Machines and equipment Means of transport Other fixed assets Total Net balance sheet value Increase due to merger of business entities Decrease due to sale of subsidiary (-) Increases due to purchase Increases due to concluded lease agreements Decreases due to sale (-) - - (6) (217) - (223) Decreases in balance due to liquidation (-) Increases or decreases resulting from revaluation Impairment write-downs (-) Reversal of write-downs Depreciation (-) - (75) (1 818) (172) (153) (2 218) Net exchange rate differences from conversion of the financial statement into the currency of presentation - (10) Other changes - - (624) - - (624) Net balance sheet value Net balance sheet value Increase due to merger of business entities - Decrease due to sale of subsidiary (-) - Increases due to purchase Increases due to concluded lease agreements - Decreases due to sale (-) (5) (47) (52) Decreases in balance due to liquidation (-) - Increases or decreases resulting from revaluation - Page 20 of 86

21 Impairment write-downs (-) - Reversal of write-downs - Depreciation (-) (33) (850) (90) (77) (1 050) Net exchange rate differences from conversion of the financial statement into the currency of presentation Other changes - Net balance sheet value Table no.4.3 TANGIBLE FIXED ASSETS ACCUMULATED VALUES- IN THE PERIOD FROM TO AND FROM TO (EXCLUDING FIXED ASSETS UNDER CONSTRUCTION) As at Land Buildings and structures Machines and equipment Means of transport Other fixed assets Gross balance sheet value Total previous amortization and write-downs (-) - (858) (14 531) (891) (1 799) (18 079) Net balance sheet value As at Gross balance sheet value Total previous amortization and write-downs (-) (880) (15 241) (951) (1 821) (18 893) Net balance sheet value a) Other fixed assets. Other fixed assets include instruments, tools, real estate and office equipment, cabooses, cabins, spectrometers, microscopes and other tools and production equipment. b) Information on pledging tangible fixed assets by the Issuer as security of liability and amounts of constraints. The above issue has been described in the Additional Information, item 23 and in note no. 10. c) Balance sheet value of temporarily unused tangible fixed assets. Not applicable d) Information about material purchase and disposal of tangible assets. In the reporting period the Group did not make any significant transactions for the purchase and sale of tangible assets e) Information about material commitment for the purchase of tangible assets. Not applicable Total NOTE NO. 5 FINANCIAL INVESTMENTS IN THE PARENT ENTITY Financial investments in the parent entity, are described in Note No. 5 to the financial statement of PROTEKTOR S.A.. Page 21 of 86

22 NOTE NO. 6 TRADE RECEIVABLES, OTHER RECEIVABLES Table no. 6.1 TRADE RECEIVABLES AS AT AND Trade receivables Write-downs updating the value of receivables under deliveries and services (-) (132) (158) Total trade receivables Table no. 6.2 OTHER RECEIVABLES AS AT AND PROTEKTOR S.A Other receivables - VAT Other receivables - VAT - tax office Other receivables - inventory differences Other receivables - deposits 4 2 Other receivables - contract performance guarantee 19 4 Other receivables sale of receivables 4 4 Other receivables - interest - Prabos plus a.s Other receivables - remuneration for the guarantee - Prabos plus a.s Other receivables - Employee Benefit Fund - - Other receivables - sale of shares Prabos plus a.s and trademark Other receivables - other 2 1 ABEBA GROUP Other receivables - deposit (hall) Other receivables - taxes Other receivables - national insurance 19 3 Other receivables - pension liabilities - assets 94 Other 8 16 Total other receivables, including long-term - - short-term Table no. 6.3 WRITE-DOWNS OF SHORT-TERM RECEIVABLES IN THE PERIOD FROM TO AND FROM 01.01TDO For period For period Opening balance Write-downs made in the reporting period Write-downs reversed in the reporting period (-) (49) (181) Write-downs used in the reporting period (-) - Other changes - 9 Closing balance Page 22 of 86

23 Table no. 6.4 TRADE RECEIVABLES AND OTHER RECEIVABLES AS AT AND CURRENCY STRUCTURE in the currency after conversion into PLN in the currency after conversion into PLN PLN EUR USD - - CZK GBP - - Total x x Table no. 6.5 SHORT-TERM RECEIVABLES - STRUCTURE OF EXPIRATION AS AT AND Overdue trade receivables up to 1 month above 1 month up to 6 months above 6 months to one year (56) 13 - above 1 year write-downs of overdue receivables (-) (132) (158) Other overdue short-term receivables up to 1 month - - above 1 month up to 6 months - - above 6 months to one year - - above 1 year write-downs of overdue receivables (-) (9) (9) Gross overdue receivables Write-downs of overdue receivables (141) (167) Net overdue receivables NOTE NO. 7 INVENTORY Table no. 7.1 STRUCTURE OF INVENTORY AS AT AND Materials Work in progress Finished goods Goods Advances for inventory Total inventory, including balance sheet value of inventory reported in fair value reduced by selling costs balance sheet value of inventory constituting security of liabilities - - Page 23 of 86

24 Table no. 7.3 INVENTORY WRITE DOWNS AS AT increases decreases Materials (8) 881 Goods (8) 96 Finished products (87) 31 Total (103) Table no. 7.4 INVENTORY WRITE DOWNS AS AT increases decreases Materials (3) 941 Goods (122) 22 Finished products (60) 65 Total (185) Inventory write-down reversal was recognised in the costs of sales (goods, finished product) and in other operating revenues (materials). The sale of finished product, goods or materials usage was cause reversal of inventory writedown. NOTE NO. 8 PREPAYMENTS Table no 8.1 SHORT-TERM PREPAYMENTS AS AT AND Page 24 of ABEBA GROUP - - Insurance Tax - cars 4 4 Other - 38 PROTEKTOR S.A. - - Paid insurance Transport - 12 Certificates Legal information system 1 2 Subscription 2 1 Other 5 4 Property tax Perpetual usufruct 17 - Rent 5 - Listing of Shares fee ( Stock Exchange) 15 - Social fund 36 - Total NOTE NO. 9 Table no. 9.1 CASH AND EQUIVALENTS AS AT AND Cash 15 6 Bank account Other 8 8 Total

25 NOTE NO. 10 FINANCIAL OBLIGATIONS Table no FINANCIAL LIABILITIES AS AT AND Credits Loans Liabilities under financial lease Other financial liabilities - Total financial liabilities long-term short-term Table no CREDITS AND LOANS WITH BREAKDOWN INTO CURRENCIES AS AT AND value in currency value in PLN value in currency value in PLN PLN EUR USD - - CZK - - MDL - - Total credits and loans x x Table no LONG-TERM CREDITS AND LOANS AS AT Amount of credit / Amount of credit / loan according to the loan remaining for Name and seat of the entity agreement repayment PLN Currency PLN Currency BRE BANK S.A. - mortgage loan - PROTEKTOR S.A. Date of repayment 6000* * Safety devices Collective contractual mortgage in the amount of thousand PLN. on the property at Kunickiego Street in Lublin Nominal interest rate WIBOR 1 M + 1,25 p.p. Total x x x x x x * long-term part of the mortgage loans in the amount of thousand PLN. Table no SHORT-TERM CREDITS AND LOANS AS AT Amount of credit / Amount of credit / Name and seat of the entity loan according to the loan remaining for Date of agreement repayment repayment PLN Currency PLN Currency BRE Bank S.A. (currently mbank SA)- working capital credit repaid PROTEKTOR S.A. BRE Bank S.A. (currently mbank SA)- mortgage loan -PROTEKTOR S.A. 6000** Page 25 of 86 Safety devices Collective contractual mortgage in the amount of thousand PLN. on the property at Nominal interest rate WIBOR 1M+1,25 p.p. WIBOR 1 M+ 1,25 p.p.

26 Bank1Saar - ABEBA Spezialschuh - Ausstatter GmbH Kunickiego Street in Lublin - - 3,12% Total x x x ** shot-term part of the mortgage loans in the amount of thousand PLN. NOTE NO. 11 OTHER FINANCIAL LIABILITIES Table no OTHER SHORT-TERM AND LONG-TERM FINANCIAL LIABILITIES AS AT AND Lease liability Other - Total long-term short-term Table no FINANCIAL LEASE LIABILITIES AS AT DZIEŃ AND minimum fees minimum fees Future minimum fees under financial lease agreements Maturing within 1 year Maturing in the period from 1 to 5 years maturing above 5 years Total future minimum fees under financial lease agreements Financial costs Current value of minimum fees under financial lease agreements Table no LEASED OBJECTS AS AT Land, buildings and structures With regard to groups of assets Machines and equipment Means of transport Other fixed assets Skoda Superb Opel Astra III Classic Opel Insignia Renault Masters Comarch ERP Automatic rotary machine - MAXIMA (Supplier - STEMMA S.R.L.) Total Total Page 26 of 86

27 Table no FINANCIAL LEASE AGREEMENTS AS AT No The Financing Party Agreement number Initial value Marki-ng of curre-ncy Date of completion of the contract Value of liabilities at the end of period in PLN Short-term in PLN Long-term In PLN Volkswagen Leasing Polska Sp. z o.o.(skoda Superb) PLN Prime Car Management S.A. (Opel Astra III Classic ) PLN BRE Leasing Sp. z o.o PLN BRE Leasing Sp. z o.o PLN Europejski Fundusz Leasingowy S.A PLN BRE Leasing in Polen)/ lease agreement with PRT vom EUR Total x x x NOTE NO. 12 SHARE CAPITAL Information on basic capital are disclosed in note no. 12 to the financial statements of the parent company. NOTE NO. 13 OTHER CAPITALS Table no CHANGES IN OTHER CAPITALS IN THE PERIOD FROM TO Other capitals Supplementary capital from sale of shares above their face value Reserve capital Supplementary capital Revaluation reserve Total As at Increases in the period differences under rounding exchange rate differences Decreases in the period write-downs of assets for sale As at (958) As at (958) Increases in the period released capital reserve on supplementary capital exchange rate differences transfer of minus capital reserve for supplementary capital Decreases in the period Page 27 of 86

28 - cover loss for awarded dividend in 2014 for previous years released capital reserve transfer of minus capital reserve for supplementary capital As at (958) NOTE NO. 14 NON-CONTROLLING SHARES Non-controlling shares include minority shareholders of Limited Liability Company "Rida" and SOOO "TERRI-PA" of Abeba Group. NOTE NO. 15 LIABILITIES FOR EMPLOYEE BENEFITS, OTHER PROVISIONS FOR LIABILITIES Table no CHANGES IN LIABILITIES FOR EMPLOYEE BENEFITS IN THE PERIOD FROM TO Reserve for retirement bonuses Provision for bonuses Reserve for leaves Other provisions Total Provisions Increases in provisions Decreases in provisions (-) (23) - (278) - (301) Established provisions Used provisions (-) - (203) (601) (456) (1 260) Released provisions (-) Other changes in provisions Provisions Provisions Increases in provisions Decreases in provisions (-) (92) (92) Established provisions Used provisions (-) (205) (108) (313) Released provisions (-) Other changes in provisions Provisions , including: short-term provisions long-term provisions Table no CHANGES IN OTHER PROVISIONS FOR LIABILITIES IN THE PERIOD FROM TO Provision Provision for liabilities Provision for Provision for audit of to former Other inventory for court the balance employees provisions differenses - cases sheet of the (PROTE- theft PROTE- (PROTE- Group KTOR S.A.) (PROTEKTOR KTOR S.A. KTOR S.A.) (PROTE- S.A.) Total KTOR S.A.) Provisions Increases in provisions Decreases in provisions (-) Page 28 of 86

29 Established provisions Used provisions (-) (28) - (24) (340) - (392) Released provisions (-) Other changes in provisions Provisions Provisions Increases in provisions Decreases in provisions (-) Established provisions Used provisions (-) (18) - (24) (183) (106) (331) Released provisions (-) (192) - - Other changes in provisions Provisions , including: short-term provisions long-term provisions Table no (CONTINUED) CHANGES IN OTHER PROVISIONS FOR LIABILITIES IN THE PERIOD FROM TO Provision Provision Provision Provision for bonuses Other for for for audits of for provisions guarantees consultancy statements customers of ABEBA (ABEBA of ABEBA of ABEBA ABEBA Capital Capital Capital Capital Capital Group Group) Group Group Group Provisions Increases in provisions Decreases in provisions (-) Established provisions Used provisions (-) (453) - (477) (615) (520) (2 457) Released provisions (-) Other changes in provisions Provisions Total Provisions Increases in provisions - Decreases in provisions (-) - Established provisions Used provisions (-) (23) (139) (399) (251) (812) Released provisions (-) - Other changes in provisions (10) (10) Provisions , including: short-term provisions long-term provisions NOTE NO. 16 TRADE LIABILITIES, OTHER LIABILITIES Table no TRADE LIABILITIES AS AT AND Page 29 of PROTEKTOR S.A. - trade liabilities ABEBA Spezialschuhausstatter GmbH - trade liabilities

30 ABEBA FRANCE SARL - trade liabilities Inform Brill GmbH - trade liabilities SOOO "TERRI-PA - trade liabilities Sp. z o.o. "Rida" - trade liabilities Total trade liabilities Table no OTHER PROVISIONS AS AT AND PROTEKTOR S.A. - - Liability - tax property Liability - income tax from individuals Liability - PFRON 5 4 Liability - Tax office 41 Liability - Social Insurance Board Liability - payroll Liability - insurance personal, property - PZU 3 3 Liability - dividend (not paid) Other Liability (costs incurred in a month and settled in the next) Liability InterRisk Towarzystwo Ubezpieczeń SA 15 Liability - ZFŚS 11 Liability dividend for shareholders granted in 2014 from profit previous years Other 4 Abeba Group - - Liability - payroll Liability - taxes Liability - Social Insurance Board Liability - dividend - - Liability for pension insurance Other Total other liabilities, including: long-term short-term Table no TRADE LIABILITIES AND OTHER LIABILITIES AS AT AND ROKU - CURRENCY STRUCTURE in the currency after conversion into PLN in the currency after conversion into PLN PLN EUR USD - - CZK - - MDL - - Total x x NOTE NO. 17 ACCRUALS Not applicable Page 30 of 86

31 NOTE NO. 18 INCOME TAX Table no INCOME TAX FOR THE PERIOD FROM TO AND FROM TO (MAIN LOAD COMPONENTS) For period For period Income statement Current income tax Current load under income tax Adjustments concerning current tax from previous years - Deferred income tax (69) (21) Associated with creation and reversing of temporary differences (69) (21) Associated with creation and lowering of the income tax rates - Tax load reported in the income statement Table no AGREEMENT OF TAX LOAD WITH THE GROSS FINANCIAL RESULT IN THE PERIOD FROM TO AND FROM TO For period For period ) Gross financial result ) Revenue adjustment permanent differences temporary differences (49) ) Accounting costs not constituting tax deductible costs (+) permanent differences temporary differences ) Tax costs constituting tax deductible costs, but not included in the result of the financial year (-) ) Income ) Deductibles from income - 7) Basis for taxation ) Income tax - current part ) Deferred tax (69) (21) 10) Total income tax Tax load reported in the income statement Table no PROVISIONS UNDER DEFERRED INCOME TAX AS AT AND Balance sheet Provisions under deferred tax Interest on receivables 5 6 Fixed assets Right of perpetual use to land Liabilities currencies. foreign exchange differences 2 2 Lease of car and forklift 3 2 Provisions under deferred tax Page 31 of 86

32 Table no ASSETS UNDER DEFERRED INCOME TAX AS AT AND Assets under deferred tax Balance sheet Employee benefits (long-service bonuses, overdue vacation, severance pays) Wages not paid (RN, FK) 3 4 Unpaid Social Security (ZUS) 8 6 Inventory of goods and finished products 9 8 Receivable - write down 2 8 Blockage of payments 10 9 Unrealized negative exchange rate differences currency receivables 7 20 Tax loss relating to assets intended for sale Other provision Gross assets under deferred tax NOTE NO. 19 REVENUES AND COSTS Table no REVENUES FROM SALE ACHIEVED IN THE PERIOD FROM TO AND FROM TO For period For period Sales of products Provision of services Sales of goods Total sales revenues Table no COSTS BY TYPE FOR THE PERIOD FROM TO AND FROM TO For period For period Depreciation and amortization Raw materials and consumables used External services Taxes and fees Remuneration Social insurance and other benefits Other costs by type Costs by type Change in inventory, work in progress, prepayments (913) (412) Costs of manufacturing of services sold (1 780) (12) Cost of generating benefits for the internal purposes of the entity (73) Consolidated adjustments 109 (594) Sale costs (4 577) (4 826) Overheads (10 109) (9 964) Cost of manufacturing of sold products, services Page 32 of 86