Annual Report SA-R 2007/2008

Transcription

1 Annual Report SA-R 2007/2008 for the financial year 2007/8 starting on January 1, 2007 and ending on June 30, 2008 and for the previous financial year 2006 starting on January 1, 2006 and ending on December 31, 2006 ; REGON: District Court for Wrocław-Fabryczna, VI Business Division of the National Court Register, KRS No Share Capital: PLN 15,950,002.00, Paid-In Capital: PLN 15,950,002.00

2 Selected financial data in EUR M December December SELECTED FINANCIAL DATA June 30, , 2006 June 30, , 2006 I. Net sales of products, goods and materials II. Operating profit (loss) III. Gross profit (loss) IV. Net profit (loss) V. Net cash flows from operating activities VI. Net cash flows from investing activities VII. Net cash flows from financing activities VIII. Total net cash flows IX. Total assets X. Liabilities and provisions XI. Long-term liabilities XII. Short-term liabilities XIII. Shareholders equity XIV. Share capital XV. Number of shares XVI. Profit (loss) per ordinary share (PLN/ EUR) XVII. Diluted profit (loss) per ordinary share (PLN/ EUR) XVIII. Book value per share (PLN/ EUR) XIX. Diluted book value per share (PLN/ EUR) XX. Dividend per share paid out or declared to be paid out (PLN/ EUR) In order to translate the Balance Sheet data as at the last day of the financing year 2007/ 2008, i.e. June 30, 2008, the EUR exchange rate effective at NBP on this day was applied, i.e PLN/EUR. In order to translate the Balance Sheet data as at the last day of the financing year 2006, i.e. December 31, 2006, the EUR exchange rate effective at NBP on this day was applied, i.e PLN/EUR. To translate data of the Profit and Loss Account for the financing year 2007/8, starting on January 1, 2007 and ending on June 30, 2008, the average EUR exchange rate was adopted, calculated as an arithmetic mean of exchange rates effective on the last day of each month in the given period, i.e PLN/EUR. To translate data of the Profit and Loss Account for the financing year 2006, starting on January 1, 2006 and ending on December 31, 2006, the average EUR exchange rate was adopted, calculated as an arithmetic mean of exchange rates effective on the last day of each month in the given period, i.e PLN/EUR. 2

3 Representation of the Management Board on reliability of the financial statements The Management Bard of AB S.A. represents that in view of the facts known to the Management Board as of the day of drafting hereof and based on documents owned, according to our best knowledge and acting in the best economic interest of the Company, the attached individual financial statement has been drafted pursuant to the Accounting Act of September 29, 1994 (Journal of Laws No. 121, Item 591 as amended). The Statement presents in a reliable manner the Company s assets and financial standing, the results of its operations and cash flows as at June 30, 2008, in compliance with the requirements of the above mentioned Act, and specifically of Article 5 Paragraph 2 and the requirements of the Ordinance of the Minister of Finance of October 18, 2005 on the scope of information disclosed in financial statements, required in the prospectus published by issuers seated in the Republic of Poland and subject to the Polish accounting standards (Journal of Laws No. 209, Item 1743) as well as of the Ordinance of the Minister of Finance of October 19, 2005 on current and periodical information provided by issuers of securities (Journal of Laws No. 209, Item 1744). In accordance with the best knowledge and belief of the Management Board, the financial statement is free from any material errors or omissions. The financial statement has been drafted applying uniform accounting standards in all periods presented, as adopted in the currently binding accounting policy. Date Name and Surname Position / Function Signature November 24, 2008 Andrzej Przybyło PRESIDENT OF THE BOARD November 24, 2008 Zbigniew Mądry MEMBER OF THE BOARD 3

4 Declaration of the Management Board on the entity licensed to conduct audit of financial statements Wrocław, November 28, 2008 Declaration The Management Board of AB S.A. declares that the entity licensed to audit the financial statements and conducting the audit of the annual financial statement of the Company, has been selected in compliance with the legal provisions and that this entity and chartered auditors performing the audit thereof met the requirements for issuing an impartial and independent opinion on audit, as required by the Polish law. Date Name and Surname Position / Function Signature November 24, 2008 Andrzej Przybyło PRESIDENT OF THE BOARD November 24, 2008 Zbigniew Mądry MEMBER OF THE BOARD 4

5 Letter of the President of the Management Board Wrocław, November 28, 2008 Ladies and Gentlemen, On behalf of the Management Board of AB S.A., we present the financial statement and the report on operations in which the economic results and the most important development of last year are described. The financial year covered by this report, untypical as it was a period of 18 months, was another milestone in the Company development. Thanks to the acquisition of a large distribution enterprise operating in the Czech and Slovak market, AT Computers Holding, AB has joined the most dynamically developing entities in our industry in this region of Europe. Individual economic results of AB S.A. resulting from the adopted and consistently implemented strategy of development, taking into account a strong pressure on cost discipline and simultaneous expansion of the sales structures, guarantee stability of our strong position in the Polish market. Further investments into logistics infrastructure are a response to the growth of sales reported for another year in a row. This should enable the Company not only to manage further growth, but also to improve efficiency at the level of operating costs, already high as compared to the entire industry. On behalf of the Management Board of AB S.A. I wish to thank all those who have contributed to the development of the Company. I direct special acknowledgements to our Shareholders who have placed their confidence in us. I believe that our strategy of growth of the Company value shall provide you with expected profits on invested capitals. Yours faithfully, Andrzej Przybyło President of the Management Board of AB S.A. 5

6 Annual Financial Statement 6

7 I. Introduction to the financial statement Name, legal form and scope of operations Company data: - Name: AB S.A. - Registered address: Wrocław, ul. Kościerzyńska 32 - Statistical number: Tax Identification Number NIP: Core operations of the Company (as stated in Articles of Association of the Company): - wholesale and retail of computer hardware, telecommunications, multimedia and electronic equipment, on own account and in consignment, acting as agent or intermediary, - import and export of computer hardware, telecommunications, multimedia and electronic equipment, - development of software products and distribution thereof, - IT networks installation, - assembly services and repairs of computer hardware, telecommunications, multimedia and electronic equipment, - internet services, - maintenance services, - IT consultancy services, - implementation of computer systems, -promotion, advertising and marketing services, - training, publishing and printing activities, - managing customs warehouses, - forwarding and transportation services, - rent of space. - Registration authority: District Court for Wrocław Fabryczna, VI Business Division of the National Court Register. Entry to the register made on October 22, 2001, under No. KRS

8 As at June 30, 2006, the Management Board of the Company consisted of the following persons: - Andrzej Przybyło - President of the Management Board - Zbigniew Mądry - Member of the Management Board - Piotr Nowjalis - Member of the Management Board On August 26, 2008, Piotr Nowjalis submitted his resignation from the function of the Member of the Management Board of AB S.A. effective as of August 31, As at June 30, 2006, the Supervisory Board of the Company consisted of the following persons: - Iwona Przybyło - Chairwoman of the Supervisory Board - Katarzyna JaŜdrzyk - Member of the Supervisory Board - Andrzej Bator - Member of the Supervisory Board - Radosław Kiełbasiński - Member of the Supervisory Board - Jacek Łapiński - Member of the Supervisory Board - Kazimierz Przybyło - Member of the Supervisory Board Duration of the Company: unlimited. Presentation and conversion of financial statements The individual financial statements contains financial data for the reporting period starting on January 1, 2007 and ending on June 30, 2008 and comparative individual financial data for the period from January 1, 2006 to December 31, On December 20, 2006, the Extraordinary General Meeting of Shareholders of AB S.A. passed a resolution on the change of the financial year of the Company (Notary Act Repertory A No. 6416/2006). Pursuant to the Resolution No. 28/2006, the financial year of the Company starts on July 1 of each year and ends on June 30 of the next calendar year. The financial year that began on January 1, 2007 ended on June 30, 2008, and thus was 18 month-long. Comparative data cover a period of 12 months and as such cannot be used for comparison purposes. However, because of the seasonality, it was decided there was no need to translate comparative data for 12 months to an 18- month period. The Company AB S.A. does not encompass any organizational units drafting separate financial statements. The Company is a dominant entity for Alsen Sp. z o.o. in Katowice and AT Computers Holding a.s. with its seat in Ostrava which holds 100 % of shares in the following entities: - AT Computers a.s. with its seat in Žilina, Slovakia, - AT Compus s.r.o. with its seat in Ostrava, Czech Republic, - AT Computers s.r.o. with its seat in Ostrava, Czech Republic, -Comfor Stores a.s. with its seat in Brno, Czech Republic. 8

9 In the reporting period, AB S.A. did not participate in any mergers. The statement has not been subject to any conversions or adjustments connected with the auditor s qualified opinion. The financial statement has been drafted assuming that the undertaking is a going concern in the foreseeable future. There are no circumstances indicating threats to the Company as a going concern. Accounting standards (policy) The accounting standards adopted to draft the financial statement as at June 30, 2008 are compliant with the provisions laid down in the Accounting Act of September 29, 1994 and complementary provisions thereto as well as the provisions of the Ordinance of the Minister of Finance of October 19, 2005 on current and periodical information provided by issuers of securities (Journal of Laws No. 209, Item 1744). Accounting records are maintained based on historical cost. The Company did not execute any adjustments that would reflect the impact of inflation on specific items of the Balance Sheet or Profit and Loss Account. The Company drafts the Profit and Loss Account based on the calculative method. The Cash Flow Statement is prepared based on the indirect method. Methods and principles of valuation of assets and liabilities and measurement of the financial result Intangible fixed assets Intangible fixed assets include computer software and goodwill resulting from contribution of an organized portion of the enterprise and are depreciated through the period of 2 to 5 years. Intangible fixed assets are valuated at acquisition or manufacturing costs decreased by the previous depreciation write-offs. Intangible fixed assets are tested in terms of permanent impairment on an annual basis. Depreciation of intangible fixed assets is made with the straight line method. Tangible fixed assets Tangible fixed assets are valuated at acquisition cost or cost of manufacturing, development or modernization. Initial value of tangible fixed assets is decreased to net value with accumulated deprecation write-offs. Depreciation of tangible fixed assets is made with the straight line method. Annual depreciation rates applied to the respective groups are as follows: Buildings and structures 2. 5% % Plant and equipment 7. 0% % Means of transportation 17. 0% % Other fixed assets 14. 0% % Tangible fixed assets of initial value lower than PLN are depreciated on a one-off basis, upon making available for use. 9

10 Tangible fixed assets are tested in terms of permanent impairment on an annual basis. Tangible fixed assets under construction Value of tangible fixed assets under construction is reported as the amount of capital expenditures incurred for their purchase or manufacturing. Value of tangible fixed assets under construction is adjusted with exchange rate differences and interest on liabilities incurred to finance purchase or construction of a fixed asset in the period of investment performance. Once the fixed assets under construction are made available for use, negative (positive) exchange rate differences and interest on liabilities are reported as costs (revenues) of financial operations. Inventory Inventory is valuated based on the lower of two values: acquisition cost or net selling price. Acquisition costs cover all costs incurred in order to convey the components of inventory to current location. Disposal of inventory is valuated at acquisition cost using the weighted average method. Net selling price is understood as the selling price, net of VAT, to be obtained as at the balance sheet day. Accounts receivable and payable, loans and borrowings Accounts receivable and payable (excluding those under loans and borrowings) in Polish currency are disclosed in payable amounts. Accounts receivable and payable in foreign currencies are booked when they arise based on the average NBP exchange rate for the given currency or based on the exchange rate specified in SAD document. Accounts receivable and payable under loans and borrowings are valuated based on the amortized cost method. Positive or negative exchange rate differences arising on due dates, resulting from the difference between the exchange rate for a specific currency as on this day and the exchange rate of this currency on the day of creation of accounts receivable or payable, are evidenced respectively as financial income or costs. Accounts receivable that remain unsettled as at the last day of the reporting period are recalculated based on the average exchange rate of the given currency effective at the National Bank of Poland on this day. Accounts payable that remain unsettled as at the last day of the reporting period are recalculated based on the average exchange rate of the given currency effective at the National Bank of Poland on this day. Unrealized negative exchange rate differences connected with the accounts receivable and payable are reported as financial costs, while unrealized positive exchange rate differences are evidenced as financial income. Accounts receivable are revaluated through revaluation write-off covering all receivables which are very unlikely to be received. Cash and cash equivalents Cash at hand and cash in bank accounts denominated in Polish currency is valuated at nominal value. Cash and cash equivalents denominated in foreign currencies are valuated at nominal value converted into Polish zlotys. At the end of the reporting period, cash and cash equivalents in foreign currencies are converted based on the average exchange rate effective at the National Bank of Poland on this day. Positive and negative exchange rate differences 10

11 due to conversion at the end of the reporting period of cash and cash equivalents in foreign currencies into Polish zlotys are evidenced as financial income or costs, as appropriate. Prepayments and accrued income Prepayments are reported in the amount of costs to be settled in the future reporting periods. Write-offs of prepayments are executed over time, and the method of their settlement depends on the nature of prepayments. Prepayments are evidenced at nominal value. Deferred tax and provision for deferred tax In connection with temporary differences between the value of assets and liabilities disclosed in the accounting books and their tax value to be deducted in the future, the Company establishes a provision and creates the deferred tax assets. Deferred tax assets are defined as the amount to be deducted from the income tax in connection with deductible temporary differences, which shall result in the future reduction of the income tax basis, calculated using the principle of cautiousness. Deferred tax assets are decreased by amount of the provision for this purpose, in compliance with the provisions of the Accounting Act. Provision for deferred tax is established in the amount of income tax payable in the future in connection with the occurrence of positive temporary differences (that shall increase the tax basis). Shareholders equity Share capital is disclosed at nominal value. As at the Balance Sheet day, the share capital amounts to PLN 15,950,002 and consists of 15,950,002 shares of par value of PLN 1.00 each. Capital reserve is disclosed as the surplus of selling price of shares above their par value and as retained profits at nominal value. Accrued expenses Accrued expenses are established in the amount of costs incurred but not paid for in the given accounting period. Accrued expenses are evidenced at nominal value. Deferred income Deferred income is evidenced at nominal value. Special funds Special funds consist of the Company Social Benefit Fund, created pursuant to the Act on the Company Social Benefit Fund. Recognition and valuation of financial instruments in the Balance Sheet All financial assets, including investments into financial instruments, are qualified as one of the below listed categories on the day of their acquisition: 11

12 - held for trading, - held until maturity, - advanced borrowings and own receivables, - available for sale. The Company qualifies as financial assets held for trading those financial assets that have been acquired or created with the intent to derive benefits as a result of fluctuations of prices in the short-term (up to three months) and those financial assets which, irrespective of the reason for their acquisition, are a group of assets that have recently been used to gain profits due to price fluctuations. The Company qualifies as financial assets held until maturity the financial assets with specified or potential payment dates or maturity dates that it intends and is able to hold until maturity, excluding advanced borrowings and own receivables. Any and all borrowings and receivables meeting the criteria of the definition of financial assets as laid down in Article 3 Paragraph 1 Item 23 of the Polish Accounting Act, arising as a result of a direct transfer to the other party to the agreement of cash, goods or services that the Company did not intend to sell in the short-term, are classified as advanced borrowings and own receivables. The Company qualifies as financial assets available for sale any and all financial assets which are not advanced borrowings and own receivables, financial assets held till maturity and financial assets held for trading. The assets available for sale include specifically shares in other entities which are not subordinated entities of the Company that the Company does not intend to sell in the short-term. Financial liabilities are classified to one of two categories: derivatives with fair value lower then zero and obligations to deliver borrowed financial instruments in case of short sale are qualified as financial liabilities held for trading, while any other financial liabilities are classified as other financial liabilities. As on the date of contract execution, financial assets are valuated at acquisition price, i.e. at fair value of expenses made or other assets transferred, and financial liabilities at fair value of received amount or value of received assets. Assets held till maturity, advanced borrowings and own receivables and other financial liabilities that were not classified as held for trading are valuated on amortized cost-basis taking into consideration effective interest rate. Receivables and liabilities with short-term maturities/ due dates (trade) and with no significant discount effect, are valuated by the Company based on the amounts due. Regarding short-term receivables, permanent impairment of asset value is taken into account, i.e. value of receivables is updated with respect to probability of their settlement by means of revaluation write-offs. The Company uses fair value to assess financial assts and liabilities held for trading as well as financial assets available for sale. The changes of fair value of financial instruments held for trading, which are not part of hedging, are reported as financial income (costs) in the Profit and Loss Account when they arise. With respect to financial assets available for sale, the changes of fair value of these instruments are evidenced by the Company in the financial income (costs) item of the Profit and Loss Account. Revenues and costs The Company recognizes as revenues and profits likely occurrence in the reporting period of economic benefits, with a reliably determined value, consisting in an increase of value of assets or reduction of value of liabilities that shall 12

13 lead to an increase of value of shareholders equity or to a decrease of shareholders equity shortage otherwise than by mans of contribution of funds by the shareholders. The Company recognizes as costs and losses likely decrease in the reporting period of economic benefits with a reliably determined value, consisting in a decrease of value of assets or an increase of value of liabilities and provisions that shall lead to a reduction of value of the shareholders equity or to an increase of its shortage otherwise than by means of withdrawal of funds by the shareholders. Revenues on sale of goods are generated on transactions of sales, taking into account discounts and reductions of prices. Costs of goods sold include purchase prices, taking into account discounts and reductions. General administration costs constitute costs of the Company s functioning, and specifically: costs of the management board and costs incurred by the departments working for the Company. Other operating income and costs include revenues and costs not directly connected with the Company s operations, essentially result on sale of tangible and intangible fixed assets, donations, established provisions, results of revaluation of non-financial assets. Financial income and costs consist principally of interest, profit and loss on sale of investments and foreign exchange differences reported in the given accounting period. Revenues and costs related to the given period are evidenced in the profit and loss account for this period irrespective of the time of actual receipt or payment (accrual basis-accounting). Average PLN/EUR exchange rates w in the reporting period Time periods Average rate Minimum rate Maximum rate Rate as at the last day in the period (1) in the period (2) in the period (3) of the period 2007/ (1) Average level of rates effective as at the last day of each month in the given period. (2) The lowest rate in the given period: exchange rate charts No. 126/A/NBP/2008 and No. 36/A/NBP/2006 (3) The highest rate in the given period: exchange rate charts No. 21/A/NBP/2007 and No. 122/A/NBP/2006 Selected financial data converted to euro SELECTED FINANCIAL DATA June 30, 2008 December 31, 2006 in EUR M June 30, 2008 December 31, 2006 I. Net sales of products, goods and materials

14 II. Operating profit (loss) III. Gross profit (loss) IV. Net profit (loss) V. Net cash flows from operating activities VI. Net cash flows from investing activities VII. Net cash flows from financing activities VIII. Total net cash flows IX. Total assets X. Liabilities and provisions XI. Long-term liabilities XII. Short-term liabilities XIII. Shareholders equity XIV. Share capital XV. Number of shares XVI. Profit (loss) per ordinary share (PLN/ EUR) 0,53 0,82 0,15 0,21 XVII. Diluted profit (loss) per ordinary share (PLN/ EUR) XVIII. Book value per share (PLN/ EUR) 11,86 6,49 3,54 1,69 XIX. Diluted book value per share (PLN/ EUR) XX. Dividend per share paid out or declared to be paid out (PLN/ EUR) In order to translate the Balance Sheet data as at the last day of the period, i.e. June , the EUR exchange rate effective at NBP on this day was applied, i.e PLN/EUR. In order to translate the Balance Sheet data as at the last day the period, i.e. December 31, 2006, the EUR exchange rate effective at NBP on this day was applied, i.e PLN/EUR. To translate data of the Profit and Loss Account for the period starting on January 1, 2007 and ending on June 30, 2008, the average EU exchange rate was applied, calculated as an arithmetic mean of exchange rates effective on the last day of each month in the given period, i.e PLN/EUR. To translate data of the Profit and Loss Account for the financing period 2006: from January 2006 to December 31, 2006, the average EUR exchange rate was applied, calculated as an arithmetic mean of exchange rates effective on the last day of each month in the given period, i.e PLN/EUR. To translate data of the Cash Flow Statement for the period starting on January 1, 2007 to June 30, 2008, the average EUR exchange rate was applied, calculated as an arithmetic mean of exchange rates effective on the last day of each month in the given period, i.e PLN/EUR. To translate data of the Cash Flow Statement for the year 2006, starting on January 1, 2006 and ending on December 31, 2006, the average EUR exchange rate was adopted, calculated as an arithmetic mean of exchange rates effective on the last day of each month in the given period, i.e PLN/EUR. 14

15 Material differences between financial data presented in this statement and corresponding data disclosed in compliance with the principles of the International Accounting Standards. The Company applies the accounting principles and methods as laid down in the Polish Accounting Act of September 29, 1994 (Journal of Laws of 2002, No. 76, Item 694 as amended; last amended in Journal of Laws of 2005, No. 267, Item 2252). The differences between the aforementioned accounting standards applied by the Company and the International Financial Reporting Standards (IFRS) are discussed below: Costs of external financing: in compliance with the Polish Accounting Standards (PAS) any and all costs of external financing incurred in the period of construction of a tangible fixed asset or development of an intangible asset increase the initial value of this asset. Profit/ (loss) on FX differences is reflected in the costs of external financing. In accordance with an alternative approach permitted by IAS 23, costs of external financing of adapted assets may be activated to their nominal value. Profit/ (loss) on FX differences is taken into consideration as part of costs of external financing only to the extent of the adjustment of interest costs. Discount of receivables: according to PAS it is not allowed to discount receivables that arose in a manner other than by means of provision of cash to a future debtor, irrespective of the financing tenor. Such receivables are disclosed at nominal value. In compliance with IAS 39, such receivables are classified as the Company s own receivables and should be evidenced based on adjusted acquisition cost. Impairment of assets: according to PAS it is required to reduce value of an asset to its net selling price or to fair value otherwise established, upon stating the impairment of value. Pursuant to IAS 36, value of assets other than inventory, financial instruments, investment real estate, deferred income tax assets and biological assets must be adjusted to higher of two values: net selling price or value in use. Costs of founding or further expansion of a joint-stock company: before the amended Accounting Act entered into effect, i.e. before January 1, 2002, costs of founding or further expansion of a joint-stock company were subject to activation to intangible assets in the period of 5 years. In compliance with temporary regulations it was required to evidence unamortized portion of these costs in the deferred costs item and to amortize them in the remaining period. In compliance with IFRS, these costs (excluding costs of issue subtracted from the surplus of issue price over par value) should be reflected directly in the Profit and Loss Account. Deferred income tax: because of some of the above presented differences, the amount of deferred income provision/assets would vary in the financial statement drafted in compliance with IFRS. At the same time, it should be mentioned that in case of certain IFRS the scope of disclosure and the manner of presentation of financial data vary in relation to those required by the Polish legal regulations. When preparing the above list of differences, the Management Board made assumptions regarding selection of standards and interpretations that shall be most likely applied to draft the first financial statement compliant with IFRS. Since the differences in values between the financial statement for the period from January 1, 2007 to June 30, 2008 drafted according to IFRS and PAS are insignificant in the individual and summary presentation, the Company decided not to present them. Furthermore, the employees and partners of the Company and its subsidiaries are covered by incentive programmes that provide for acquisition, free of charge, of subscription warrants authorizing them to acquire the Company s 15

16 shares. These rights shall be realized no later than in As required in IFRS 2, the programme options shall be valuated by the Company at fair value to be disclosed in the consolidated statement to be published in January

17 II. Balance Sheet Assets Notes June 30, 2008 December 31, 2006 ASSETS I. Fixed assets Intangible assets, of which: Goodwill 2. Tangible fixed assets Long-term receivables From related parties From other entities 3. Long-term investments Real estate Intangible assets 3.1. Long-term financial assets a) in related parties, of which: shares in subordinated companies valuated based on equity method b) in other entities Other long-term investments 4. Long-term prepayments and accruals Deferred income assets Other prepayments and accruals II. Current assets Inventory Short-term receivables 6, From related parties From other entities Short-term investments Short-term financial assets in related parties a) in other entities b) cash and cash equivalents Other short-term investments 4. Short-term prepayments and accruals Total assets

18 Liabilities Notes June 30, 2008 December 31, 2006 I. Shareholders equity Share capital Called-up share capital not paid (negative figure) Treasury shares (negative figure) 2. Capital reserve Revaluation reserve Other Capital reserves Retained profit (loss) 3. Net profit (loss) Net profit write-offs throughout the financial year (negative figure) II. Liabilities and provisions Provision for liabilities 1.1. Deferred income tax provision 1.2. Provision for pensions and similar benefits a) long-term b) short-term 1.3. Other provisions long-term a) short-term 2. Long-term liabilities to affiliated companies 2.1. to other entities Short-term liabilities to affiliated companies to other entities Special funds Accruals 124 Negative goodwill 4.1. Other accruals 124 a) long-term b) short-term 124 Total liabilities Book value Number of shares Book value per one share (in PLN) Diluted number of shares Diluted book value per one share (in PLN) 18

19 Off-Balance Sheet Items Contingent receivables from related parties (under) received guarantees and sureties Note June 30, 2008 December 31, 2006 from other entities (under) received guarantees and sureties 1. Contingent liabilities to related parties (under) provided guarantees and sureties 1.1. to other entities (under) provided guarantees and sureties Other (under) -- promissory notes issued -- factoring Total Off-Balance Sheet Items

20 III. Profit and Loss Account Actual data Comparative data Notes January 1, 2007 to June 30, 2008 January 1, 2006 to December 31, 2006 I. Net sales of products, goods and materials, of which: from related parties Net sales of products Net sales of goods and materials II. Costs of products, goods and materials sold, of which: to affiliated companies Cost of manufacturing of products sold value of goods and materials sold III. Gross profit (loss) on sales IV. Selling costs V. General administration costs VI. Profit (loss) on sales VII. Other operating income Profit on sale of non-financial fixed assets 3 Subsidies 2. Other operating income VIII. Other operating costs Loss on sale of non-financial fixed assets 60 Revaluation of non-financial assets Other operating costs IX. Operating profit (loss) X. Financial income Dividends and profit sharing, of which: from related parties 1. Interest, of which: from related parties 2. Profit on sale of investments Revaluation of investments 3. Other XI. Financial costs Interest, of which: to affiliated companies 2. Loss on sale of investments 3. Revaluation of investments 4. Other XII. Profit (loss) on business activities Result of extraordinary events Extraordinary profits Extraordinary losses XIII. Gross profit (loss) XIV. Income tax a) current portion b) deferred portion Other obligatory reductions of profits (increases of loss) Participation in net profits (losses) of subordinated companies valuated based on equity method XV. Net profit (loss)

21 Net profit (loss) (annualized) Weighted average number of ordinary shares Profit (loss) per ordinary share (in PLN) Weighted average diluted number of ordinary shares Diluted profit (loss) per ordinary share (in PLN) * Comparative data calculated by means of dividing the actual data by 12 (months) and multiplying by 18 (months). 21

22 IV. Statement on Changes in Shareholders Equity June 30, 2008 December 31, 2006 I. Shareholders equity at the beginning of period (opening balance) Changes in accounting principles (policy) Correction of fundamental errors I.a. Shareholders equity at the beginning of period (opening balance), after reconciliation to comparative data Share capital at the beginning of period Change in share capital a) increase (as a result of) issue of shares decrease (as a result of) redemption of shares 1.2. Share capital at the end of period Called-up share capital not paid at the beginning of period Change in called-up share capital not paid increase (as a result of) decrease (as a result of) Called-up share capital not paid at the end of period Treasury shares at the beginning of period Change in Treasury shares increase (as a result of) decrease (as a result of) Treasury shares at the end of period 2. Capital reserve at the beginning of period Change in capital reserve a) increase (as a result of) issue of shares above par value distribution of profit (at statutory minimum) - distribution of profit (above statutory minimum) b) decrease (as a result of) - loss coverage 2.2. Capital reserve at the end of period Revaluation reserve at the beginning of period Change in revaluation reserve increase (as a result of) decrease (as a result of) disposal of fixed assets Revaluation reserve at the end of period 22

23 Other capital reserves at the beginning of period Change in other capital reserves increase (as a result of) distribution of retained profits decrease (as a result of) Other capital reserves at the end of period Retained profit (accumulated loss) at the beginning of period Retained profit at the beginning of period Changes in accounting principles (policy) Correction of fundamental errors 3.2. Retained profit at the beginning of period increase (as a result of) retained profit brought forward a) decrease (as a result of) increase of reserve funds - increase of capital reserve Retained profit at the end of period 3.3. Accumulated loss at the beginning of period Changes in accounting principles (policy) Correction of fundamental errors 3.4. Accumulated loss at the beginning of period, after reconciliation to comparative data increase (as a result of) accumulated loss brought forward a) decrease (as a result of) Accumulated loss at the end of period Retained profit (accumulated loss) at the end of period 4. Net result a) net profit net loss profit write-offs II. Shareholders equity at the end of period (closing balance ) III. Shareholders equity, in consideration of proposed distribution of profits (loss coverage)

24 V. Cash Flow Statement Actual data Comparative data June 30, 2008 December 31, 2006 A. Cash flows on operating activities (direct method) Inflows Sales Other operating inflows Outflows Supplies and services Net wages and salaries Social and health insurance and other benefits Taxes and similar charges Other operating outflows Net cash flows from operating activities (I-II) - direct method (indirect method) I. Net profit (loss) II. Total adjustments Sharing net (profit) loss of subordinated companies valuated based on equity method 1. Depreciation (Profit) loss on foreign exchange differences Interest and profit sharing (dividends) (Profit) loss on investing activities Change in provisions 5. Change in inventory Change in accounts receivable Change in short-term liabilities, excluding loans and borrowings Change in prepayments and accrued income Other adjustments III. Net cash flows from operating activities (I+/-II) - indirect method B. Cash flows on investing activities I. Inflows Sale of intangible assets and intangible fixed assets Sale of investments in real estate and intangible assets 2. financial inflows, of which: 76 a) from related parties disposal of financial assets dividends and profit sharing - repayment of long-term borrowings granted - interest Other financial inflows b) in other entities 76 disposal of financial assets dividends and profit sharing repayment of long-term borrowings granted - interest - other financial inflows 76 Other investment inflows 86 II. Outflows Acquisition of intangible assets and intangible fixed assets Investments in real estate and intangible assets on financial assets, of which: 89 24

25 a) in related parties acquisition of financial assets long-term borrowings availed b) in other entities - acquisition of financial assets - long-term borrowings availed 3. Other investment outflows III. Net cash flows from investing activities (I-II) C. Cash flows on financing activities I. Inflows Net inflows on issue of shares and other instruments and additional contributions to equity Loans and borrowings Issue of debt securities Other financial inflows II. Outflows Purchase of own shares 1. Dividends and other payments to shareholders Distribution of profit other than payments for the benefit of the owners 2. Repayment of loans and borrowings 3. Redemption of debt securities Under other financial liabilities 4. Payments under finance lease agreements 5. Interest Other financial outflows III. Net cash flows from financing activities (I-II) D. Total net cash flows (A.III+/-B.III+/-C.III) E. Balance sheet change in cash and cash equivalents, of which: Change in cash and cash equivalents under foreign exchange differences F. Cash and cash equivalents at the beginning of period G. Cash and cash equivalents at the end of period (F+/- D), of which: restricted

26 VI. Supplementary information and explanations Notes to the Balance Sheet Note 1 a INTANGIBLE FIXED ASSETS June 30, 2008 December 31, 2006 costs of completed research and development works goodwill a) concessions, patents, licences and similar, of which: computer software Other intangible assets b) prepayments for intangible fixed assets Intangible fixed assets in total

27 Note 1b CHANGE IN INTANGIBLE FIXED ASSETS (WITH BREAK-DOWN TO CATEGORIES) as at June 30, 2008 a b c d e Concessions, patents, licences and Costs of completed research and development works Goodwill similar, of which: - computer software Other intangible fixed assets Prepayments for intangible fixed assets Intangible fixed assets in total a) gross value of intangible fixed assets at the beginning of period b) increase (as a result of) - purchase of software c) decrease (as a result of) - liquidation of software - - transfer to software d) gross value of intangible fixed assets at the end of period e) accumulated amortization at the beginning of period f) amortization for period (as a result of) increase decrease g) accumulated amortization at the end of period h) write-off on permanent impairment of value at the beginning of period - increases - decreases i) write-off on permanent impairment of value at the end of period j) net value of intangible fixed assets at the end of period

28 Note 1c INTANGIBLE FIXED ASSETS (OWNERSHIP STRUCTURE) June 30, 2008 December 31, 2006 a) owned Used under lease, tenancy or similar agreement, including lease contract, of which: Intangible fixed assets in total Note 2a TANGIBLE FIXED ASSETS June 30, 2008 December 31, 2006 a) tangible fixed assets, of which: land (including perpetual usufruct of land) buildings and structures plans and equipment means of transportation other tangible fixed assets b) tangible fixed assets under construction prepayments for tangible fixed assets under construction tangible fixed assets in total

29 Note 2b CHANGES IN TANGIBLE FIXED ASSETS (WITH BREAK-DOWN TO CATEGORIES) - land (including perpetual usufruct of land) - buildings and structures - plant and equipment - means of transportation - other fixed assets Tangible fixed assets in total a) gross value of tangible fixed assets at the beginning of period b) increase (as a result of) purchase investment settlement c) decrease (as a result of) sale liquidation d) gross value of tangible fixed assets at the end of period e) accumulated amortization at the beginning of period f) depreciation for period (as a result of) increases decreases g) accumulated amortization at the end of period h) write-off on permanent impairment of value at the beginning of period - increases - decreases i) write-off on permanent impairment of value at the end of period j) net value of tangible fixed assets at the end of period

30 Note 2c TANGIBLE FIXED ASSETS (OWNERSHIP STRUCTURE) June 30, 2008 December 31, 2006 a) own b) used under lease, tenancy or similar contract, including lease agreement, of which: - lease of cars Tangible fixed assets in total As on December 31, 2006, subject to mortgage were developed real estates located in Wrocław, at ul. Kwidzyńska and Kościerzyńska for a total amount of PLN 1,383 M, with assignment of rights to insurance policy against fire and fortuitous events. Mortgage secured loans provided by Kredyt Bank S.A. and Raiffeisen Bank S.A. As on June 30, 2008, mortgage was established on developed real estates located in Wrocław, at ul. Kwidzyńska and Kościerzyńska for a total amount of PLN 10,448 M with assignment of rights to insurance policy against fire and fortuitous events to collateralize the loans provided by Kredyt Bank S.A. and Raiffeisen Bank S.A. Note 3a CHANGE IN REAL ESTATE (WITH BREAK-DOWN TO CATEGORIES) June 30, 2008 December 31, 2006 a) balance at the beginning of period b) increase (as a result of) purchase of land 452 c) decrease (as a result of) - d) balance at the end of period Note 3b LONG-TERM FINANCIAL ASSETS June 30, 2008 December 31, 2006 a) in subsidiaries equity interests or shares debt securities other securities (by type) Long-term financial assets in total The Company holds shares in its subsidiaries, i.e. Alsen Sp. z o.o. with its seat in Katowice and AT Computers Holding a.s. with its seat in Ostrava, Czech Republic. AT Computers Holding a.s. holds 100 %-stakes in the following companies: AT Computers a.s. with its seat in Žilina, Slovakia, AT Computers s.r.o. with its seat in Ostrava, Czech Republic, AT Computers s.r.o. with its seat in Ostrava, Czech Republic, Comfor Stores a.s. with its seat in Brno, Czech Republic. Note 3c CHANGE IN LONG-TERM FINANCIAL ASSETS (WITH BREAK-DOWN TO CATEGORIES) June 30, 2008 December 31, 2006 a) balance at the beginning of period equity interests or shares borrowings granted b) increase (as a result of) equity interests or shares borrowings granted c) decrease (as a result of) - disposal of equity interests or shares - revaluation write-off - reduction of borrowings d) balance at the end of period equity interests or shares borrowings granted 30

31 Note 3d EQUITY INTERESTS OR SHARES IN SUBORDINATED COMPANIES a b c d e f g h i j k l No. Name of the company, form of incorporation Registered seat Business profile Marketing services, trade 1 Alsen Sp. z o.o. Katowice 2 AT Computes Holding a.s. Note 3e Ostrava Czech Republic Nature of capital links (subsidiary, cosubsidiary, affiliated company, either direct or indirect) Consolidation method applied / equity method valuation or specification that company is not subject to consolidation / equity method valuation Date of acquisition of control / material influence: Value of equity interest / shares at acquisition price Revaluation write-offs (in total) Balance sheet value of equity interest / shares Percentage of share capital held operations subsidiary Full consolidation May 30, Marketing services, trade operations subsidiary Full consolidation Oct. 30, Share in total number of votes in general meeting of shareholders Other basis for control / significant influence than indicated in j) or k) EQUITY INTERESTS OR SHARES IN SUBORDINATED COMPANIES No. 1 2 a m n o p r s t Shareholders equity of the company, of which: The Company s liabilities and provisions for liabilities, of which: The Company s receivables, of which: Name of the company - share capital Alsen Sp. - called-up share capital not paid (negative figure) - capital reserve - other capitals, of which: retained profit (accumulated loss) brought forward net profit (loss) - long-term liabilities - short-term liabilities - long-term receivables - short-term receivables The Company s assets in total z o.o AT Computer s Holding a.s Sales Equity interests or shares in the Company unpaid by the issuer Dividend for last financial year received or due 31