CONSOLIDATED FINANCIAL STATEMENT OF THE CAPITAL GROUP PZ CORMAY S.A.

Transcription

1 CONSOLIDATED FINANCIAL STATEMENT OF THE CAPITAL GROUP PZ CORMAY S.A. A. INTRODUCTION 1.GENERAL INFORMATION Consolidated financial statement of the capital group PZ CORMAY S.A. includes: Consolidated financial statement of the Capital Group PZ Cormay for the reporting period from to including the balance sheet, profit and loss statement, specification of changes in the consolidated own equity and the consolidated cash-flow statement. Comparable financial data for the period from to for the balance sheet and changes in the own equity - for the period from to for the profit and loss statement and cash-flow statement The description of the principles applied at preparing the consolidated financial statement Additional information in the scope specified in the Ordinance of the Minister of Finances of 19 th October 2005 on the current and periodical information delivered by the issuers of securities. The financial data in the financial statement was presented in thousands zlotys, unless there is stated otherwise. The statement was prepared according to the International Accountancy Standards. 1.1 General characteristic of PZ Cormay S.A. Company s name - PZ Cormay Spółka Akcyjna Seat office - Łomianki Registering Court - District Court for the capital city Warsaw In Warsaw XIV Business Department of the National District Court Entrepreneurs Register No Tax identification number REGON Business activity acc. to European Classification of Activity: 2095Z Manufacture of other chemical products not classified anywhere else Register of the PZ Cormay S.A. occurred on The duration of the Company is unlimited according to the Articles of Association. 1.2 Information concerning the Management Board and Supervisory Board and possible changes in the reporting period. Headcount of the Management Board as of : Tomasz Tuora - the President of the PZ Cormay S.A. Barbara Tuora - Wysocka - the Member of the PZ Cormay S.A. In the reporting period there were no changes in the headcount of the Management Board of PZ Cormay S.A. 1

2 Headcount of the Supervisory Board as of Chairman of the Supervisory Board - Stefan Jackowski Deputy Chairman of the Supervisory Board - Stanisław Szczurek Member of the Supervisory Board - Włodzimierz Jaworski Member of the Supervisory Board - Marek Stępień Member of the Supervisory Board - Paweł Edward Nowak Member of the Supervisory Board - Ryszard BłaŜejewski. In the reporting period there were no changes in the headcount of the Supervisory Board of PZ Cormay S.A. 1.3 Remuneration for four quarters 2008 of the person managing and supervising the Capital Group PZ Cormay S.A. NAME PZ CORMAY S.A. KORMIEJ DIANA TOTAL Tomasz Tuora Barbara Tuora-Wysocka In the reporting period the supervising persons of the Capital Group PZ Cormay did not received any remuneration. 1.4 Share capital of PZ Cormay S.A. The share capital of PZ Cormay S.A. as for was 11, 861, 977 PLN and was divided into 11, 861, 977 shares at the nominal value 1 PLN each. The shares capital (structure) as of Serial No. Type of the shares Number of shares Number of votes Nominal value Percentage of share capital Percentage of votes at the general meeting A Normal bearer shares ,00 58,02 58,02 B Normal bearer shares ,00 21,08 21,08 C Normal bearer shares ,00 4,17 4,17 D Normal bearer shares ,00 16,73 16,73 Total ,00 100,00 100,00

3 In the period from to there were any changes in the amount of the share capital of PZ Cormay S.A. According to the knowledge of Management Board of PZ Cormay S.A. as for the date of preparing this report ( ) the list of shareholders who possessed at least 5% of votes is as follows: Shareholders Number of shares Number of votes Percentage of share capital Percentage of votes at general meeting CORMAY AG ,70 59,70 Hyposwiss (LUX)- Fund Danube Tiger Tomasz Tuora encl. TT Management ,01 8, ,8 5,8 1.5 Information on capital group PZ Cormay S.A. is the dominant entity in the Capital Group which as of 31th December 2008 and as of 31 st December 2007 consisted of the following entities: KORMEJ DIANA Sp. z o o. Legal form: KORMEJ DIANA Spółka z o.o. Seat office Mińsk, Belarus OKJLP Code (All-Russia Classification of Legal Persons): OKED Code (All-Russia Classification of Business Activity): , Subject of activity: Wholesale trading The share of the PZ Cormay S.A. in the share capital of the subsidiary and votes at the general meeting of shareholders: PZ Cormay S.A. is a holder of 98,5% of shares of KORMEJ DIANA, that gives 98,5% votes at the general meeting and 98,5% share in the share capital. KORMIEJ - RUSŁAND S.A. Closed Legal form: KORMIEJ - RUSŁAND S.A. Closed Seat office Moscow, Russia OKPO Code (All-Russia Classification of Enterprises and Organizations): INN Code (Tax identification number, NIP): Y OKED Code (All-Russia Classification of Business Activity): Subject of activity: Wholesale trading in medical technique The share of the PZ Cormay S.A. in the share capital of the subsidiary and votes at the general meeting of shareholders: 3

4 PZ Cormay S.A. is a holder of 100% of shares of KORMIEJ-RUSŁAND S.A. Closed, that gives 100% of the votes at the General Meeting and 100% of share in the capital share. 2. IMPORTANT ACCOUNTING PRINCIPLES 2.1 The base to prepare the consolidated financial statement The consolidated financial statement was prepared according to the provisions of the International Accounting Standards and International Financial Reporting Standards and their interpretation published in a form of Executive Ordinances of the European Commission as well as the provisions of the Minister of Finances of 19 th October 2005 on the current and periodical information delivered by the issuers of securities (Dz. U. No. 209, item 1744). The full consolidation covers the financial statement of the dominant entity PZ Cormay S.A and all affiliates. The comparable period includes the consolidated financial statement of the Group PZ Cormay consisted of: PZ Cormay S.A., Kormiej Rusłand S.A. and Kormej Diana Spółka z o.o. for the period from to This financial statement was prepared at the going concern principle of the companies included in the Capital Group PZ Cormay. The elements of the assets and liabilities presented in the consolidated statement were valued according to the historical cost principles, excluding the financial assets which are valued at fair value. The reporting currency is polish zloty Scope and method of consolidation At preparing the consolidated financial statement of the capital group for the I six months 2008 the method of full consolidation was applied to the related entities. The related entities are subject of consolidation in the period from the date of being taken up by the dominant entity. Consolidation using the full method was made keeping the following principles: - All proper items of assets and liabilities of the dominant entity and related entities was sum up to the full amount, - All proper items of revenues and cost of the dominant entity and related entities was sum up to the full amount for the period covered by supervision - After summing up the adjustments and exclusions was made - The achieved net profit was reduced by the profits of the minor shareholders - Exclusions included in particular: - Own equities of the related entities arisen before the taken up - part of the own equity of related entities corresponding to the shares of the dominant entity - Mutual receivables and liabilities - Revenues and costs concerning the business operations made between the entities covered by the consolidation - Unrealized profits included in the amounts being a subject of consolidation of assets and liabilities The all settlements between these entities covered by the consolidation were accounted to the mutual receivables and liabilities requiring exclusion. 4

5 The shares of minority in the net assets include the amount of shares of minority from the date of initial merge and the changes in the own equity falling to the minority starting from the date of merge. The consolidated financial statement was prepared at the concern going principle by the PZ Cormay S.A. and entities of the capital group in the foreseeable future. In the opinion of the Management Board of PZ Cormay S.A. there are any circumstances indicating the risk of concern going principle. 2.3 Evaluation of the items expressed in foreign currencies. The business entities belonged to the Capital Group PZ Cormay prepares the financial statements in the currency of the country where they conduct their business activity. Transactions expressed in the other currencies than polish zloty are recalculated into the polish zloty applying the exchange rate binding on the transaction day. The exchange differences arisen from the recalculation are presented properly in the item of financial revenues (costs) or in cases specified by the accounting principles, capitalized in the assets value. Consolidated financial statement of the Capital Group PZ Cormay is presented in the thousands of polish zlotys. The exchange differences arisen from changing the currency was presented in the own equity. At preparing the consolidated statement of the Capital Group PZ Cormay for the period the financial data presented in the Company Kormej Diana are recalculated into PLN using the exchange rate of the Belarusian ruble to the polish zloty: The items concerning the profit and loss statement was calculated according to the exchange rate being the arithmetic average binding on the last day of the calendar month. This exchange rate for the period was PLN for 100 BYR, and for the period PLN for 100 BYR the balance sheet items was calculated according to the average exchange rate published by the NPB binding as of the balance day. This exchange rate was: as of the balance date PLN for 100 BYR, as of PLN for 100 BYR The data presented in the Company Kormiej Rusłand was calculated into PLN using the Russian ruble exchange rate to PLN: The items concerning the profit and loss statement was calculated according to the exchange rate being the arithmetic average binding on the last day of the calendar month. This exchange rate for the period was PLN, for the period PLN the balance sheet items was calculated according to the average exchange rate published by the NPB binding as of the balance day. This exchange rate was: as of the balance date PLN, and as of ,0995 PLN. 2.4 Assets and liabilities evaluation principles Tangible fixed assets The fixed assets are valued at the purchase price, manufacturing cost diminished by the depreciation and the impairment losses. The purchase price or manufacturing cost include the costs incurred in order to purchase or manufacture of the tangible fixed asset and the expenses incurred later in order to improve the utility of the asset, exchange or current service. The tangible fixed assets under construction are depreciated from the moment of their commencement. If any events or changes occurred which may indicate that the balance value of the fixed assets is unrecoverable, then the review of these assets is made in aspect of the possible impairment loss. If there are any assumptions indicating the fact that the impairment loss 5

6 occurred, and the balance sheet value exceeds the anticipated recoverable value, then the value of these fixed assets is reduced to the level of recoverable value. Impairment losses write down are included in the profit and loss statement at the item the other costs. The depreciation is calculated for the all fixed assets, excluding the lands and tangible fixed assets under construction for the anticipated period of economic utility of these assets, using the linear method, and applying the following annual amortization rates: - Buildings up to 2,5 to 10 % years - Machinery and equipment up to 2,5% to 50 years - hardware up to 20% to 33% years - Means of transport, up to 10% to 33% years - Other fixed assets up to 6% to 50% years The amortization rates reflect the period of economic utility for the fixed asset Goodwill The goodwill sue to the taking up the business entity is presented according to the purchase price reduced by the all cumulated impairment loss write downs. The goodwill is presented as the assets and at least once a year is subject of analysis in aspect of impairment loss. The possible impairment loss is presented in the profit and loss statement Intangible assets The asset meets the identifiability criterion specified in the definition of the intangible asset, if: 1. It may be separated, i.e. it may be excluded or separated from the business entity and be sold, transferred, licensed or give to paid use to the third parties. 2. It follows the contractual titles of other legal titles notwithstanding they are disposable or separatable from the business entity or other tiles or liabilities. The intangible assets are subject of depreciation in linear method for the anticipated utility period. The depreciation starts at the moment when the asset is ready to be used i.e. when this assets is in place and condition enabling usage in the intended manner. The depreciation ends when this asset was classified as to be sold or on the date when this asset is not included into the assets any more. Trademarks and licenses The trademarks and licenses possess the limited (completed) periods of the economic utility and are presented in the balance sheet according to the historical cost reduced by the current depreciation. The amortization is calculated in the linear method in order to allocate the cost for the anticipated utility period. Computer software The purchased licenses for the computer software are activated to the amount of costs incurred for purchase and preparing to use of the relevant computer software. The activated costs are write off by the anticipated period of use. 6

7 Inventory The Inventory are the materials purchased to be used for the own needs and goods purchased to be resold in unprocessed conditions and the finished products and manufacture in progress. The inventory is valued at the purchase price or manufacture costs not higher than the net sale price. The manufacturing costs consist of the costs of direct materials, direct remunerations and justified part of the indirect costs. The purchase costs of the inventory consist of purchase price, import duties and transport costs. The costs is set using the FIFO method (First In First Out) As for the each balance day the assessment of the inventory is made in aspect of the impairment loss making the revaluation, if any assumptions occur. At the moment of selling the inventory their balance value is presented as the cost of the period, when the related revenues are presented. The amount of all revaluation inventory to the net amount possible to be received and any losses in the inventories are presented as the cost of period when the revaluation or loss occurred Receivables and accruals The receivables due to the deliveries and services are presented according to the nominal value arisen as of the date of revenue. As of the balance day the commercial receivables are valued keeping the prudence principle. The value of the receivable is written down considering the degree of possibility to be paid. The receivables write downs are charged into the other costs. The accruals include the costs incurred by the Group concerning the future reporting periods Cash and equivalents The cash and short-term deposits presented in the balance sheet include the cash at bank and at hand and short-term deposits with the initial maturity date not exceeding three months Provisions The provisions for liabilities are created for certain and possible future liabilities to be incurred in the next reporting periods, which may be reliably estimated. The main items of provisions include: - provision due to the deferred income tax - Provision for retirement The Group creates the provisions for retirement gratuities following the labor law. The provision is estimated keeping the actuarial assumptions Bank credit and loans bearing interests At the moment of initial presentation, the all bank credits and loans are presented pursuant to the purchase price corresponding to the fair value of received cash reduced by the costs 7

8 related to the credit or loans obtaining. After the initial presentation the credits and loans are presented according to the adjusted purchase price (amortized cost). Any differences between the received amount (less the transaction costs) and the buy-out value are presented in the profit and loss statement for the period of duration of related agreements using the method of effective interest rate. The credits and loans are classified to the short-term liabilities unless the entity possesses unconditional right to defer the payment of the liability by at least 12 months from the balance day Deferred income tax The Group creates the provisions due to the deferred income tax regarding the positive temporary differences. If the balance value of the relevant asset exceeds its tax value, then the amount of taxable economic benefits will be higher than the amount recognized as the income cost. This difference is a positive temporary difference and the obligation to pay in the future period the income tax is presented in the item provision for the deferred income tax. With reference to the negative temporary differences the asset due to the deferred income tax is presented to the amount in which is possible that the income to be taxable will be achieved and that allows to deduct the negative temporary differences. If the balance value of the relevant asset is lower than its tax value, then the difference is the negative temporary difference which justifies presenting the assets due to the deferred income tax, which will be realized in the future periods Liabilities and accruals The liabilities are recognized as the current, resulting from the pas events obligation to make the payments with the fixed value, which will cause the usage of yet possessed of future assets of the Group. The liabilities are presented in the fair values id est in the nominal values arisen as of the date of liability. Accruals include the revenues due subsidies Lease Lease is classified as the financial leasing when the terms and conditions of the agreement transfer all possible benefits and risk resulting from being the owner into the Lessor. The assets used under the lease agreement are treated as the Company s or relevant entity of the Group asset and evaluated at the fair value as of the purchase. All other lease are treated as the operating lease Revenues The revenues from sale are presented at the fair value of the payments have received or payable excluded rebates and VAT tax. The revenues due to interest are presented according to the memorial principle as the effective interest rate method. 8

9 Taxes The obligatory burdens of result include the corporate income tax CIT and deferred tax. The corporate income tax is deducted under the base of the financial results (the base of tax) of the relevant fiscal year. The tax profit (loss) differs from the booked net profit (loss) in reference with excluding the nontaxable revenues and costs which are not income costs temporary and the items of costs and revenues which will never be taxable. The tax burdens are calculated basing on the tax rates binding in the relevant fiscal year. The corporate income tax was calculated under the base of the tax result from the relevant reporting period. The tax burden is calculated under the base of tax rate 19% income achieved by the PZ Cormay S.A. and under the base of tax rate 24% income achieved by the companies Kormej-Diana and Kormiej- Rusłand Financial instruments The main financial instruments which are used by PZ Cormay include the bank credits and pecuniary assets (including bank deposits). The financial instruments are used in order to obtain the financial assets. Financial instruments are presented at the fair value. 3. FINANCIAL DATA IN EURO 3.1 Currency exchange rates in the period covered by the consolidation In the periods covered by the consolidate financial statement the average exchange rates of Euro into PLN established by the National Polish Bank was as follows: Average exchange rate as for ,1724 PLN Average exchange rate as for ,5820 PLN Average exchange rate in four quarters 2008 calculated as the arithmetic average of the exchanges rates binding as of the last day of each month - 3,5321 PLN. Average exchange rate in four quarters 2007 calculated as the arithmetic average of the exchanges rates binding as of the last day of each month - 3,7768 PLN. 3.2 The basic items of the consolidated financial statement calculated into EUR. THOUSAND PLN THOUSAND EUR CONSOLIDATED PZ CORMAY 2008R 2007R 2008R 2007R 1 BALANCE SUM FIXED ASSETS OWN EQUITY REVENUES FROM SALE OF GOODS AND SERVICES NET PROFIT CHANGE IN THE PECUNIARY ASSETS PROFIT (LOSS) IN THE OPERATING ACTIVITY GROSS PROFIT (LOSS) CASH-FLOWS FROM THE OPERATING ACTIVITY CASH-FLOWS FROM THE INVESTMENT ACTIVITY NET CASH-FLOW FROM FINANCIAL ACTIVITY LIABILITIES AND PROVISIONS FOR LIABILITIES

10 13 LONG-TERM LIABILITIES SHARE CAPITAL NUMBER OF SHARES NET PROFIT PER ONE SHARE (PLN, EUR) 0,14 0,17 0,04 0,05 17 BOOKING VALUE PER ONE SHARE (PLN, EUR) 1,62 1,31 0,46 0,35 The principles applied at calculation: The balance sheet items was calculated into EURO pursuant to the exchange rate binding as of the last days of each balance period. The items of the profit and loss statement and change of the pecuniary assets were calculated into EURO pursuant to the average exchange rate calculated as the arithmetic average of the exchange rates binding on the last day of the month in the relevant reporting period 4. ACTIVITY SECTORS 4.1. Geographic sector The Group acts in three main geographical sectors. First one is the domestic market. The second one is the sale to the EU Member states so the countries operating in the economic environment and similar policy. Third sector is the sale to the other countries Branch sector The subject of the basic business activity of the Company is manufacture of the reagents to the laboratory diagnostics and distribution of the diagnostic apparatus. The Issuer offer includes four basic groups of products including: Reagents to the tests for clinical chemistry (biochemistry), Reagents to hematology Reagents to coagulology Gels to the electrophoresis division. Moreover the Issuer offer includes three groups of products: Vacuum system to sample the blood Vacuette, Monoclonal reagents to blood groups marking Apparatus to the diagnostic laboratories

11 5. RISK MANAGEMENT POLICY 5.1 Risk related to the general macroeconomic situation The products offered by the Issuer are dedicated to the medical laboratories operating within the health care institutions system. As long as it is impossible to expect reduction of the demand for the laboratory test reagents below the minimum level to secure essential needs of the health care system in scope of detecting and diagnosing diseases, shaping of the demand for the diagnostic apparatuses offered by the Issuer is directly linked with the economic growth pace which affects financial situation of the health care system entities, and thus the will of the medical laboratories to invest in new apparatuses. Consequently, the drop in the growth pace of the gross domestic product may have influence on worsening financial situation of the Polish health care institution and may diminish their budgets assigned for such investments as medical apparatuses, which could contribute to a reduced demand for the goods of PZ Cormay. The Capital Group has a limited influence on the market growth, however it strives to minimize negative outcomes of possible changes in the economic climate by diversifying geographic sales markets and by increasing the ratio of the export sales in its total sales incomes. 5.2 Risk of amending legal regulations and their interpretation The legal regulations being in force over the territory of the Republic of Poland are subject to frequent amendments, and their influence on the activities of PZ Cormay may be negative. The amendments to the regulations concerning the tax law may negatively affect the Capital Group, and particularly the amendments to the Act dated 15 th February 1992 on corporate income tax or to the Act dated 11 th March 2004 r. on tax on goods and services. The tax regulations are not created precisely which results in a risk of their different interpretation by the entrepreneurs and citizens when compared to the interpretation applied by the national administration authorities. Due to the fact that PZ Cormay operates within the area strictly governed by the legal regulations, it is also needed to emphasize a risk of amending the regulations related the production and marketing of the medical products, and particularly the Act dated 20 th April 2004 on medical goods. In case of different interpretation of the valid regulations or in case of issuing new regulations, PZ Cormay may face negative consequences as to the business activities it runs and possibly the financial result. 5.3 Risk concerning development of the in-vitro diagnostics technology The advancing development of the global laboratory diagnostics causes that the market success of PZ Cormay depends on its ability to observe continuously the technological changes and on the quickness of adopting its products to meet the market expectations. Subsequently, a possibility to compete successfully in the market requires constant developmental works and investments in new product lines. The business activity run by PZ CORMAY, particularly in the aspect of successful expansion of sales over the foreign markets, shows high effectiveness of adopting the product portfolio to the changing consumers expectations. However, it is impossible to exclude that some new technologies will appear in the market which will make that the reagents produced by PZ Cormay will require to be adopted to the changing requirements of the diagnostic apparatuses, otherwise the demand for them will be reduced, thus reducing the sales incomes. 5.4 Currency risk PZ Cormay mostly generates its incomes from the sales carried out in the foreign markets, particularly in the market of the Russian Federation. That is why the significant part of the incomes is generated in foreign currencies. At the same time Cormay S.A. brings about 90% of the materials to produce the laboratory test reagents and goods from foreign markets by settling payments for the aforementioned goods and materials mostly in EUR, Japanese yen and British pound. Therefore, the sales carried out in the Polish market and most of the incomes from the sales carried out in export markets are related to the currency

12 risk which may lead to reducing the sales profitability in case of unfavourable changes in the rates of the currencies in which the purchases of the goods and materials are paid, as well as changes in the rates of the currencies in which the sales incomes are generated. However, it should be taken into consideration that the sales incomes generated by the Capital Group are not based on long-term contracts which allows to modify the price policy in case of changing the exchange rates resulting in the increased raw materials purchase prices. 5.5 Risk related to high concentration of sales in the Russian market Most incomes of the Issuer are generated from the sales carried out in the export markets, mainly in the market of the Russian Federation. PZ Cormay has no formal information which could suggest a possibility to introduce any restrictions or a total prohibition of export of the Polish laboratory test reagents to the Russian Federation. Nevertheless, taking into consideration the history of the diplomatic relations between the both states, one cannot exclude that some restrictions concerning the trade exchange with the Russian Federation in scope of the products offered by PZ Cormay S.A may be introduced. Introduction of prohibition to import the Polish laboratory test reagents by Russia would cause a significant drop in the sales incomes, and subsequently it could have a negative influence on the financial results achieved. 5.6 Risk related to the market niche activities and to a possible stronger competition The specific nature of the products offered by PZ Cormay makes that the commercial offer is directed to a relatively small group of clients. That is why the business activities of the Capital Group are niche-like ones. According to the Management Board s opinion, PZ Cormay S.A. is the first and the largest Polish producer of the laboratory test reagents, however the products of PZ Cormay S.A. compete both in the Polish market and in the foreign markets with an offer of a series of other producers whose operations, in many cases, are performed globally. Taking into consideration the extent of the activities performed which limits the range of the available measures to keep a client, the development of the Capital Group is shaped by top quality services being the basis to build a long-term co-operation with the clients. However, it is impossible to exclude stronger competitiveness in the market in which the Capital Group operates which may be reflected by reduced level of the product sales margins, resulting in worse sales volume and financial results. 5.7 Risk related to the financial situation of the public health care institutions The Capital Group generates most of its incomes from the domestic sales carried out in favour of the public health care institutions whose financial situation resulting both from the limited funds received from the public sources, and from no restructuring actions is tough in many cases. Tough situation of some of the public health care institutions is, in many cases, reflected by the difficulties to settle current financial commitments. PZ Cormay applies due diligence in scope of selecting its clients in terms of possible payment risks when settling the dues for the supplied products or goods. At the same time in order to increase effectiveness of the liquidity management policy PZ Cormay S.A. co-operates on daily basis with a debt collecting company. However, it is impossible to exclude such a risk that the effects of the actions carried out in that scope will not bring the expected effects which may result in worsening the liquidity indices. 6. EVENTS AFTER THE BALANCE SHEET DATE No significant events have occurred after the balance sheet date.

13 B. BALANCE SHEET ASSETS A. Fixed assets (long-term) Tangible fixe assets Goodwill Other intangible assets Assets due to the deferred income tax Long-term receivables and accruals 414 B. Current assets (short-term) Inventory Short-term receivables and accruals Receivables due to the deferred income tax 0 4. Financial assets for sale Pecuniary assets and their equivalents C. Long-term assets classified as for sale Total assets LIABILITIES A. Equity Share capital Excess from shares disposal above their nominal value Supplementary and reserve capitals Revaluation reserve due to the Exchange differences Profits/loss from previous years and current Minority shares 2 2 B. Long-term liabilities Provisions Provision due to the deferred income tax Long-term credit and loans Other long-term financial liabilities Long-term liabilities and pre-paid expenses C. Short-term liabilities Provisions Short-term credit and loans Short-term part of long-term credit and loans Other short-term financial liabilities Short-term liabilities and accruals Liabilities due to the deferred income tax Futures contracts Total liabilities

14 C. PROFIT AND LOSS STATEMENT CALCULATION VERSION A. Net revenues from sales of products, goods and materials B. Cost of products, goods and materials sold C. Gross profit (loss) on sales (A-B) D. Selling costs E. General and administrative costs F. Other revenues G. Other expenses H. Profit (loss) on operating activities (C-D-E-+F-G) I. Financial revenues J. Financial expenses K. Share of the affiliated entities in net profits/losses of the common ventures by the method of the ownership rights 0 0 L. Gross profit (loss) (H+I-J+K) M. Income tax N. Net profit (loss) from business activity (L-M) P. Profit/loss for the fiscal year on the discontinued operations 0 0 R. Net profit (loss) for the ficsal yera(n+p)

15 D. CHANGES IN OWN S EQUITY I. Opening balance of equity adjustments of fundamental errors and changes in accounting I.a. Opening balance of equity after adjustments Opening balance of share capital Changes in share capital a) increase (due to) issuance of shares Closing balance of share capital Opening balance excess from shares sale over the nominal value Change in excess from shares sale over the nominal value a) increase (due to) issuance of shares b) decrease (due to) 72 costs of issuance of shares Excess from shares sale above the face value Opening balance of supplementary capital Changes in supplementary capital a) increase (due to) distribution of profit for the previous year b) decrease (due to) 3.2. Closing balance of supplementary capital Opening balance of revaluation reserve Changes in revaluation reserve a) increase (due to) b) decrease (due to) Closing balance of revaluation reserve Opening balance of previous years' profit (loss) adjustments- Exchange differences from calculation the profit 5.1. Opening balance of previous years' profit, after adjustments 679 a) increase (due to) 101 b) decrease (due to) 0 - distribution of previous year profit 5.2. Closing balance of previous years' profit Opening balance of previous years' loss Net result a) net profit b) net loss c) write-offs on profit II. Closing balance of equity Opening balance minority shares 2 2 Closing balance minority shares 2 2 III. Equity including proposed profit distribution (loss coverage)

16 E. CASH-FLOW STATEMENT INTERMEDIATE METHOD For the period from to For the period from to Cash flows from operating activities Net profit (loss) Adjustment: Share of the affiliated entities in net profits/losses of the common ventures by the method of the ownership rights Minority shares Amortization and depreciation of fixed assets Amortization and depreciation of intangible assets 4 Loss of goodwill Profit/loss on exchange differences -171 Expenses and revenues due to the interests 0 63 Revenues due to the dividends Profit (loss) on investment activities 0-32 Change in provisions Change in inventory Change in prepayments Change in accruals Change in liabilities due to the deferred income tax Other adjustments Net cash flows from operating activities Cash flows from investment activities Inflows from disposal of intangible and tangible fixed assets Net inflows from disposal of the affiliates and related entities Inflows from the financial assets disposal Inflows from the interests Inflows from the dividends Payment of the granted loans Expenses for purchase of the tangible fixe assets/intangible assets Net expenses for purchase of the affiliates and related entities Expenses for the purchase of short-term financial assets Granted loans Other Net cash flows from operating activities Cash flows from investment activities Inflows from credit and loans

17 Net inflows from the issuance of shares, stocks, cheques and bills Payment of credit and loans Liabilities due to the financial lease agreements Dividends paid to shareholders Dividends paid to the minority shareholders Purchase of own shares Paid interests 0 63 Other 171 Net cash flows from investment activities Increase/decrease of the cash and equivalents Cash and equivalents opening balance Profits/losses due to the exchange differences concerning the cash and equivalents Closing balance of cash and equivalents

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