Apator S.A. Opinion and Report of the Independent Statutory Auditor. Fiscal Year ended December 31, 2013

Apator S.A. Opinion and Report of the Independent Statutory Auditor Fiscal Year ended December 31, 2013 Opinion contains 3 pages. Report supplementing the opinion contains 9 pages Opinion of the statutory auditor and report supplementing the opinion on the audit of the separate financial statement for the year ended December 31, 2013

OPINION OF THE INDEPENDENT STATUTORY AUDITOR For the General Meeting of Apator S.A. Opinion on the separate financial statement We have audited the attached separate financial statement of the Apator SA, with the registered office in Toruń, ul. Gdańska 4A, room C4 ( Company ), which comprise the separate statement of financial position prepared as of December 31, 2013 and the separate statement of comprehensive income, separate statement of changes in equity and the separate statement of cash flows for the fiscal year then ended and the notes to the financial statement comprising of a summary of significant accounting principles and the other explanatory information. Responsibility of the Management and the Supervisory Board The Management Board of the Company is responsible for accuracy of the accounting records, and the preparation and fair presentation of this separate financial statement pursuant to the International Financial Reporting Standards as adopted by the European Union and other applicable regulations and for preparation the Management Report. The Management Board is also responsible for internal control as management deems it necessary to enable the preparation of the financial statements that are free of material misstatements, whether due to fraud or error. Pursuant to the Accounting Act of September 29, 1994 (Dz. U. U. 2009 No. 152, item 1223 as amended) ( Accounting Act ) the Management Board of the Company and the members of the Supervisory Board are required to ensure that the financial statement and the management report are in compliance with the requirements set forth in the Accounting Act. Responsibility of the Statutory Auditor Our responsibility is, based on the audit, is to express an opinion on these separate financial statements and whether the financial statements are derived from properly maintained accounting records. The audit of the financial statement was conducted pursuant to provisions of the chapter 7 of the Accounting Act, national financial reporting standards issued by the National Board of Statutory Auditors in Poland and International Financial Reporting Standards. Those regulations require that we comply with ethical requirements and to plan and perform the audit to obtain the reasonable assurance about whether that the financial statement and accounting records from which they derived are free of material misstatements. The audit involves performing procedures to obtain audit evidence about amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risk of material misstatement of the financial statement whether due to fraud or error. In making those risk assessment, we consider the internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating appropriateness of accounting principles used and the reasonableness of accounting estimates made by management, as well as evaluating the overall financial statement presentation.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. OPINION In our opinion the attached separate financial statements of Apator S.A. have been prepared and present fairly, in all material respects, the financial position of the Company as of December 31, 2012, the results of its operations and its cash flows for the fiscal year ending this day in conformity with the International Financial Reporting Standards as adopted by the European Union, are compliant with all regulations and provisions of the Articles of Association that apply to the separate financial statement and have been prepared from accounting records, that, in all material respects, have been properly maintained. Special explanations on other law requirements and regulations Management Report of the Company As required under the Accounting Act, we also report that the Management Report of the Company includes the information required by Art. 49 of the Accounting Act and of the Ordinance of the Minister of Finances dated 19 February 2009 on the current and periodic information provided by the issuers of securities and conditions of considering as equal the information required by the legal provisions of the non-member country (Dz. U. 2009 No. 33, item 259 as amended) in all material respects and the information is compliant with the information contained in the separate financial statements. On behalf of KPMG Audyt Spółka z ograniczoną odpowiedzialnością sp.k., Registration No. 3546 ul. Chłodna 51 00-867 Warszawa Rafał Wiza Marek Gajdziński Key Statutory Auditor Statutory auditor Register No. 11995 Register No. 90061 Limited Partner, Proxy Limited Partner, Proxy Poznań, April 23, 2014

FINANCIAL STATEMENTS

Apator S.A. Report supplementing the opinion on the audit of the financial statement Year ending December 31, 2013 Report supplementing the opinion contains 9 pages Report supplementing the opinion on the audit of the separate financial statement for the year ending on December 31, 2013

Table of contents Apator S.A., Report supplementing the opinion on the audit of the financial statement ending December 31, 2012. 1. General 3 1.1. General information about the Company 3 1.1.1. Company s name 3 1.1.2. Registered office 3 1.1.3. Registration in the National Court Register 3 1.1.4. Management of the entity 3 1.2. Information about the statutory auditor and entity authorized to audit financial statements 3 1.2.1. Information about the statutory auditor 3 1.2.2. Information about the authorized entity 3 1.3. Information about the separate financial statement for the previous fiscal year 4 1.4. Scope of activities and responsibilities 4 2. Financial analysis of the Company 6 2.1. General analysis of the separate financial statement 6 2.1.1. Separate statement of financial position 6 2.1.2. Separate statement of profit and loss and comprehensive income 7 2.2. Selected financial ratios 8 3. Detailed report 9 3.1. Accounting principles 9 3.2. Additional notes to the separate financial statement 9 3.3. Management Report of the Company 9

Apator S.A., Report supplementing the opinion on the audit of the financial statement ending December 31, 2012. 1. General part 1.1. Information about the Company 1.1.1. Name of the Company Apator S.A. 1.1.2. Registered office ul. Gdańska 4A, room C4 87-100 Toruń 1.1.3. Registration of the company in the National Court Register Registering Court: District Court in Toruń, 7th Commercial Division of the National Court Register Date: October 24, 2001 Register No.: KRS 0000056456 Share capital as of the end of the period: PLN 3 310 702.80 1.1.4. Management of the Entity The position of the manager of the entity is held by the Management Board of the Company The Management Board of the Company as of December 31, 2012 consisted of: Mr Andrzej Szostak - President of the Management Board Mr Tomasz Habryka- Member of the Management Board Mr Jerzy Kuś - Member of the Management Board As of June 24, 2013 Mr Janusz Niedźwiecki resigned from its position in the Management Board. Under the resolution adopted October 23, 2012 the position of the President of the Management Board is held by Mr Andrzej Szostak on June 25, 2013 1.2. Information about the statutory auditor and entity authorized to audit financial statements 1.2.1. Information about the statutory auditor Name and surname: Rafał Wiza Register No.: 11995 1.2.2. Information about the authorized entity Company: KPMG Spółka z ograniczoną odpowiedzialnością Sp.k. Registered office: ul. Chłodna 51, 00-867 Warszawa Register No.: KRS 0000339379 Registering Court: District Court for the capital city of Warsaw in Warsaw 12th Commercial Division of the National Court Register, NIP [Tax Identification Number]: 527-26-15-362

Apator S.A., Report supplementing the opinion on the audit of the financial statement ending December 31, 2012. KPMG Audyt Spółka z ograniczoną odpowiedzialnością sp.k. is entered into the list of the entities authorized to audit the financial statements kept by the National Chamber of Statutory Auditors with the number 3546. 1.3. Information about the separate financial statement for the previous fiscal year The separate financial statement of the parent entity for the fiscal year ending December 31, 2011 was audited by KPMG Audyt Spółka z ograniczoną odpowiedzialnością sp.k., the entity authorized to audit financial statements and obtained the opinion without any reservations. The separate financial statement was approved by the General Meeting on June 18, 2012, which stated that the profit for the previous fiscal year in the amount of PLN 37 731 552.16 was divided as follows: Dividend- PLN 46 349 839.20 Supplementary capital PLN 23 993 976.98 The separate financial statement has been submitted to the Registering Court on June 28, 2013. 1.4. Scope of activities and responsibilities This report was prepared for the General Meeting of Apator S.A., seated in Toruń, ul. Gdańska 4A, room C4 and refers to the financial statement, which consists of the separate statement of financial position prepared as of December 31, 2013 and the separate statement of comprehensive income, separate statement of changes in equity and the separate statement of cash flows for the fiscal year ending this day and the additional notes on the accepted accounting principles and the other explanatory notes. The audited entity prepares the separate financial statement pursuant to the International Financial Reporting Standards, which were approved by the European Union based on resolution of the Extraordinary General Meeting of Shareholders of December 20, 2004. The audit of the separate financial statement was conducted pursuant to the agreement of April 6, 2012 concluded under Resolution of the Supervisory Board of January 23, 2012 referring to the selection of the entity authorized to audit the financial statement. The audit of the separate financial statement was carried our pursuant the provisions of the chapter 7 of the Accounting Act of September 29, 1994 (Dz. U. of 2009 No. 152, item 1223 as amended) ( Accounting Act ), National Financial Reporting Standards issued by the National Chamber of Statutory Auditors and International Financial Reporting Standards. The audit of the separate financial statement was conducted in the Company in the period from February 24 to March 7, 20143. The Management Board of the Company is responsible for accuracy of the accounting books, for preparing and reliable presentation of the separate financial statement pursuant to the International Financial Reporting Standards, which were adopted by the European Union and other applicable regulations and for preparation the Management Report. Our task was, basing on carried audit, to express the opinion and to prepare the supplementing report on this separate financial statement and the correctness of the accounting books being a base for it.

Apator S.A., Report supplementing the opinion on the audit of the financial statement ending December 31, 2012. The Management Board of the Company on the date of issue of this report submitted the statement on fairness ad clearness of the separate financial statement presented to be audited and on lack of occurrence of the events not disclosed in the separate financial statement affecting significantly the data presented in the separate financial statement for the audited year. During the audit of the separate financial statement the Management Board submitted all the required statements, explanations and information and provided us with all documents and information necessary to issue the opinion and to prepare the report. The scope of planned and executed works was not limited in any manner. The scope and manner of the audit result from the prepared working documents, which are held in the registered office of the authorized entity. The Key Statutory Auditor and the entity authorized meet the requirement of being independent of the audited Company in the meaning of Art. 56 sec. 3 and 4 of the Act of May 7, 2009 on the on Statutory Auditors, Their Self-Governing Organisation, and Entities Authorised to Audit Financial Statements and on Public Oversight (Dz. U. of 2009, No. 77 item 649 as amended).

Apator S.A., Report supplementing the opinion on the audit of the financial statement ending December 31, 2012. 2. Financial analysis of the Company 2.1. General analysis of the separate financial statement 2.1.1. Separate statement of financial position ASSETS 31.12.2013 % 31.12.2012 % PLN 000 assets PLN 000 assets Non-current assets Intangible assets 4 290 1.6 3 057 1.1 Property, Plant and Equipment 71 942 26.3 69 272 25.3 Investment property 1 320 0.5 1 303 0.5 Other long-term financial assets 121 884 44.5 126 380 46.2 Granted long-term loans 83 0.0 Long- term receivables 41 0.0 943 0.3 Deferred tax assets 21 151 7.7 20 455 7.5 Total non-current assets 220 628 80.6 221 493 80.9 Current assets Inventories 19 458 7.1 18 898 6.9 Trade receivables 28 299 10.3 25 675 9.4 Receivables due to corporate income tax 1 141 0.4 - Receivables due to other taxes, subsidies, customs and social insurances 697 0.3 1 666 0.6 Other current receivables 932 0.3 415 0.2 Other short-term financial assets 778 0.3 131 0.0 Granted short-term loans 85 0.0 214 0.1 Cash and cash equivalents 1 354 0.5 4 566 1.7 Short-term accrued and deferred assets 630 0.2 741 0.3 Total current assets 53 374 19.4 52 306 19.1 TOTAL ASSETS 274 002 100.0 273 799 100.0

Apator S.A., Report supplementing the opinion on the audit of the financial statement ending December 31, 2012. LIABILITIES 31.12.2013 % 31.12.2012 % PLN 000 assets PLN 000 assets Equity Share capital 3311 1.2 3311 1.2 Other capitals 162 305 59.2 138311 50.5 Capital from revaluation of defined benefit plans (170) 0.0 (49) 0.0 Capital from measurement of hedging 349 0.1 359 0.1 transactions Undivided financial result 41 417 15.1 57 150 20.9 Total equity 207 212 75.6 199 082 72.7 Liabilities Long-term liabilities 1 423 0.5 1 024 0.3 Provision for liabilities due to employee benefits 4 606 1.7 4 585 1.8 Total long-term liabilities 6 029 2.2 5 609 2.1 Short-term borrowings 35 702 13.1 35 358 12.9 Trade liabilities 14 350 5.2 13 092 4.8 Liabilities due to corporate income tax 4 009 1.5 Liabilities due taxes, customs and social insurances 2 505 0.9 2 069 0.8 Other short-term liabilities 5 215 1.9 11 545 4.2 Short-term provisions for liabilities due to employee benefits 2 366 0.9 2 459 0.9 Other short-term provisions 623 0.2 575 0.2 Total short-term liabilities 60 761 22.2 69 108 25.2 Total liabilities 66 790 24.4 74 717 27.3 TOTAL LIABILITIES AND EQUITY 274 002 100.0 273 799 100.0

Apator S.A., Report supplementing the opinion on the audit of the financial statement ending December 31, 2012. 2.1.2. Separate statement of profit and loss and comprehensive income 1.01.2013 - % 1.01.2012 - % 31.12.2013 Revenues 31.12.2013 from sale * Revenues from sale PLN 000 PLN 000 Revenues 167 862 100.0 183411 100.0 Cost of sales (120 051) 71.5 (140 438) 76.6 Gross profit from sales 47 811 28.5 42 973 23.4 Distribution expenses (9 524) 5.7 (10 220) 5.6 Administration expenses (24 302) 14.4 (24 163) 13.1 Profit on sales 13 985 8.3 8 590 4.7 Other operating revenues 785 0.5 19 674 10.7 Profit from operating activities 14 770 8.8 28 264 15.4 Finance income 38 198 22.7 29 260 16.0 Finance cost (1 729) 1.0 (3 144) 1.7 Net financial revenues 36 469 21.7 26116 14.2 Profit before tax 51239 30.5 54 380 29.7 Current income tax (604) 0.4 (4 829) 2.6 Deferred income tax 665 0.5 20 842 11.4 Net loss for the fiscal year 51 300 30.6 70 393 38.4 OTHER COMPREHENSIVE INCOME Profit on hedge accounting (10) 0.0 1 819 1.0 Items to be reclassified to the profit of the year Revaluation of provisions due to defined benefit (121) 0.1 (49) 0.0 plan with tax effect Net other comprehensive income for the fiscal (131) 0.1 7 770 1.0 year Total comprehensive income for the fiscal year 51169 30.5 72163 39.3

2.2. Selected financial ratios Apator S.A., Report supplementing the opinion on the audit of the financial statement ending December 31, 2012. 1. Return on sales Profit for the period x 100 revenues from sales 2. Return on equity Profit for the period x 100% equity- profit for the period 3. Debtor s days Average trade receivables x 365 days revenues from sales 4. Debt ratio Liabilities x 100% equity and liabilities 5. Current ratio current assets current liabilities 2013 2012 2011 30.6% 38.4% 24.2% 32.9% 54.6% 29.6% 59 days 57 days 75 days 24.4% 27.3% 35.5% 0.9 0.8 1.0 Revenues from sales are comprised of revenues from sale of products, goods and materials. Average trade receivables represent the arithmetic average of trade receivables at the beginning and at the end of the reporting period, excluding allowances for receivables.

3. Detailed report Apator S.A., Report supplementing the opinion on the audit of the financial statement ending December 31, 2012. 3.1. Accounting principles The Company maintains current documentation describing the applied accounting principles adopted by the Management Board of the Company to the extent required by Art. 10 of the Accounting Act. During the audit of the separate financial statement we tested, on a sample basis, of the correctness of the accounting system operation. On the basis of the work performed, we have not identified any material irregularities in the accounting system, which has not been corrected and that could have a material impact on the separate financial statement. Our audit was not conducted for the purpose of expressing a comprehensive opinion on the operation of the accounting system. The Company performed a physical inventory of the assets in accordance with the requirements and time frame specified in Art. 26 of the Accounting Act and settled and accounted for in the records. 3.2. Additional notes to the separate financial statement All information included in the notes to the separate financial statement comprising of a summary of significant accounting principles and other explanatory notes is, in all material aspects, presented accurately and completely. This information should be read in conjunction with the separate financial statements. 3.3. Management Report of the Company The management report of the Company includes, in all material aspects, information required by Art. 49 of the Accounting Act and of the Ordinance of the Minister of Finances dated 19 February 2009 on the current and periodic information provided by the issuers of securities and conditions of considering as equal the information required by the legal provisions of the non-member country (Dz. U. 2009 No. 33, item 259 as amended) and information is consistent with the separate financial statement. On behalf of KPMG Audyt Spółka z ograniczoną odpowiedzialnością sp.k. Registration No. 3546 ul. Chłodna 51 00-867Warszawa Rafał Wiza Marek Gajdziński Key Statutory Auditor Statutory auditor Reg. No. 11995 Registration No. 90061 Limited Partner, Proxy Limited Partner, Proxy Poznań, April 23, 2014

MANAGEMENT REPORT

Letter of the President of the Management Board Dear Sirs, Dear Shareholders I am very pleased to present you, personally and on behalf of the Management Board of Apator SA, the Annual Report 2013. The year was full of events, which- in my opinion- will significantly and positively influence on the market and financial standing of the Apator Group in the following years. The past year was designated to update the development strategy. The new strategy, published in February, was created owing to engagement of all management and I would like to thank you all for your contribution. Out new plan presents intensive and sustainable growth in the professional energy sector with the particular attention to two segments: measuring equipment and systems and grid automation. The integrated solutions including IT systems and collaborating smart devices are the base of the plan. Owing to such definition of development priorities, the Apator Group intends to keep the present growth dynamic and provide the attractive profitability that will be reflected by the goodwill for its Shareholders. Moreover, thanks to new approach, we intend to provide the deeper integration of the companies belonging to the capital group. The aforementioned business model would be difficult to be implemented, if Elkomtech SA in Łódź was not acquired. This transaction significantly strengthen the Apator Group position in the energy sectors and supplements our competences and allows us to develop in compliance with new strategy definition. The results of 2013 are the evidence that the Apator Group uses the opportunities and trends of the market. The figures presented in this Report are similar to those of 2012. However, I would like pay attention that comparing the exact figures in both periods, the last year consolidated revenues from sales and consolidated financial results on all levels improved significantly. In particular, our revenues from sales and profit for the year 2013 increased by 12% (PLN 660 M) and 23% (PLN 70 M) accordingly, in year on year approach. The attached report contains the detailed description of adjustments and key factors affecting the financial standing of the capital group. Summarizing: we end the year 2013 with the satisfying result and new development strategy supported by acquisition of Elkomtech SA. We would like to take this opportunity to thank Mr Janusz Niedźwiecki, who held the position of the Management Board of Apator SA for over 13 years, to June 24, 2013 and at present is the chairman of the Supervisory Board. Without this person, the success achieved by the Apator Group, would be impossible. Yours faithfully Andrzej Szostak President of the Management Board Apator S.A.

Separate financial statement Separate annual financial statement 1 Nazwa jednostki: Apator SA Strona 1

Separate annual financial statement 2 Content 1. General information... 5 1.1. Information on the entity... 5 1.2. Activity of the entity... 5 1.3. The makeup of the Executive Board and the Supervisory Board... 5 2. Information on the basis on preparation of financial statement, reporting currency and rounding applied.... 6 2.1. The basis for preparation of separate financial statement... 6 2.2. Principles of International Financial Reporting Standards applied.... 6 2.3. Reporting currency and the rounding level applied... 7 2.4. Duration of activity of the entity... 7 2.5. Approval of financial statement... 7 3. Separate financial statement of Apator S.A.... 8 3.1. Separate financial statement of financial situation... 8 3.2. Separate financial statement of profit and loss account and other comprehensive income... 10 3.3. Separate financial statement of changes in equity... 12 3.4. Separate financial statement of cash flow... 14 4. Accounting principles applied... 16 4.1. Basis for preparation (general principles)... 16 4.2. Detail principles for measurement of assets and liabilities... 16 4.2.1. Intangibles, cost of research and development... 16 4.2.2. Tangible fixed assets... 17 4.2.3. Investments and subsidiaries... 18 4.2.4. Leasing... 18 4.2.5. Investment property... 18 4.2.6. Inventories... 18 4.2.7. Cost of external financing... 19 4.2.8. Government subsidies... 19 4.2.9. Trade receivables... 19 4.2.10. Financial instruments... 20 4.2.11. Bank loans... 21 4.2.12. Trade liabilities... 22 4.2.13. Provisions... 22 4.2.14. Revenues... 23 4.2.15. Transactions in foreign currencies... 23 4.2.16. Taxes... 24 Nazwa jednostki: Apator SA Strona 2

Separate annual financial statement 3 4.2.17. Zone relief resulting from activity in Special Economic Zone... 24 4.2.18. Equities... 24 5. Basic accounting judgements and bases for uncertainty estimation... 25 6. Information on seasonal sales... 25 7. Explanatory notes to separate financial statement... 25 7.1. Operating segments... 25 7.2. Intangibles... 25 7.3. Tangible fixed assets... 27 7.4. Investment properties... 31 7.5. Other financial assets... 31 7.6. Inventories... 33 7.7. Trade receivables and other receivables... 34 7.8. Borrowings granted... 36 7.9. Cash... 37 7.10. Accruals and prepayments... 37 7.11. Share capital... 37 7.12. Other capitals... 38 7.13. Loans and borrowings... 39 7.14. Provisions for liabilities... 41 7.15. Liabilities... 42 7.16. Income tax... 43 7.17. Costs by nature... 47 7.18. Other operating revenues and costs are presented in the table.... 47 7.19. Financial revenues and costs... 48 7.20. Explanations to cash flow statement... 50 7.21. Financial lease... 52 7.22. Future payments due to operating lease not included in the statement of financial position.... 53 7.23. Financial instruments... 53 7.24. Financial derivatives,hedge accounting... 56 7.25. Purposes and principles of financial risk management... 58 7.26. Information on related entities... 62 7.27. Contingent items and other ones not recognized in financial statement of financial position... 67 7.28. Structure of employment... 67 The employment in Apator S.A. is presented in the table.... 67 7.29. Remuneration of entity entitled to audit financial statement... 68 7.30. Subsides... 68 Nazwa jednostki: Apator SA Strona 3

Separate annual financial statement 4 7.31. Amendments to accounting principles... 69 7.32. Events that occurred after the end of reporting period.... 69 8. Signatures... 71 Nazwa jednostki: Apator SA Strona 4

Separate annual financial statement 5 1. General information 1.1. Information on the entity APATOR Joint Stock Company with the headquarters in Toruń (ul.gdańska 4a lok C4) was established by the employees of former state owned company under the name of Zakłady Aparatury Elektrycznej Apator in Toruń. The entity was registered at District Court in Toruń at V Economic Department on 14 th January 1993 under registration number RHB 1364. On 24 th October 2001 the entity was entered into Register of Entrepreneurs at District Court in Toruń, VII Economic Department of National Register Court under number of 0000056456. The entity runs business in the territory of Poland based on regulations of the Polish Commercial Companies Code. 1.2. Activity of the entity In accordance with the Statutes the main activity of the entity is manufacturing and service of electrical distribution and control equipment and sales of metering equipment and systems. Shares of APATOR S.A. are quoted on primary market sector is according to Warsaw Stock Exchange in Warsaw classification electrical machines. 1.3. The makeup of the Executive Board and the Supervisory Board The Executive Board Andrzej Szostak President of Executive Board (since 25 th June 2013 ) Tomasz Habryka Member of Executive Board Jerzy Kuś Member of Executive Board Till 24 th June 2013 the President of Executive Board of Apator SA was Janusz Niedźwiecki, who is currently the Chairman of the Supervisory Board. The Supervisory Board Janusz Niedźwiecki Chairman of Supervisory Board (since 25 th June 2013 ) Mariusz Lewicki Deputy Chairman of Supervisory Board Janusz Marzygliński Member of Executive Board (Chairman of Supervisory Board till 24 th June 2013) Danuta Guzowska Member of Executive Board Krzysztof Kwiatkowski Member of Executive Board Marcin Murawski Member of Executive Board (since 25 th June 2013 ) Ryszard Wojnowski and Eryk Karski were the Members of Supervisory Board till 24 th June 2013. Nazwa jednostki: Apator SA Strona 5

Separate annual financial statement 6 2. Information on the basis on preparation of financial statement, reporting currency and rounding applied. 2.1. The basis for preparation of separate financial statement Separate annual financial statement of Apator SA as at the day and for the period ending on 31 st December 2013 has been prepared in accordance with International Accounting Standards, International Finance Reporting Standards and referred to them interpretations published in form of decrees of European Commission. The annual separate financial statement of Apator SA covers the year 2013 and it contains comparative data for 2012. 2.2. Principles of International Financial Reporting Standards applied. FIRST TIME ADOPTED STANDARDS Standards, amendments to binding standards and interpretations (accepted or being accepted by European Union) being in force as at 1 st January 2013: Amendments to IFRS 7 Financial instruments: disclosure of information Compensation of financial assets and liabilities are applied for annual periods commencing on 1 st January 2013 or later; IFRS 13 Establishment of fair value are applied for annual periods commencing on 1 st January 2013 or later; Amendments to IAS 1 Presentation of financial statements: presentation of items of other comprehensive income are applied for annual periods commencing on 1 st July 2012 or later; Amendments to IAS 12 Taxes Deferred income tax: Future performance of the elements in assets are applied for annual periods commencing on 1 st January 2013 or later; Amendments to IAS 19 edited in 2011 Employee benefits are applied for annual periods commencing on 1 st January 2013 or later; annual amendments to International Financial Reporting Standards in the period 2009 2011 within regular procedure for the introduction of amendments are applied for annual periods commencing on 1 st January 2013 or later; Acceptance of the above standards and interpretations except for IAS 19 did not cause any significant amendments to accounting policy of the Company and data presentation in financial statements. The effects of amendments to IAS 19 have been described in point 7.31. STANDARDS AND INTERPRETATIONS AWAITING THE APPROVAL BY EUROPEAN UNION On the day of publication of present financial statement the following standards and interpretations are awaiting the approval of European Union: - Amendments to IFRS 9 published in 2009 and in 2010 Financial instruments" are applied for annual periods commencing on 1st January 2015 or later; - Amendments to IFRS 9 Financial instruments" and IFRS 7 Financial instruments: disclosure" are applied for annual periods commencing on 1 st January 2015 or later; Nazwa jednostki: Apator SA Strona 6

Separate annual financial statement 7 The application of new standards will not have any significant influence on financial statement of the Company. STANDARDS AND INTERPRETATIONS NOT APPLIED IN HEREBY FINANCIAL STATEMENT On the day of publication of hereby financial statement there are some standards and interpretations that were approved but they have not come in force yet: IFRS 10 Consolidated financial statement are applied for annual periods commencing on 1 st January 2014 or later; IFRS 11 Joint contractual arrangements are applied to annual periods commencing on 1 st January 2014 or later; IFRS 12 Disclosure of information on shares in other entities are applied for annual periods commencing on 1 st January 2014 or later; Amendments to IAS 27 published in 2011 Separate financial statement are applied for annual periods commencing on 1 st January 2014 or later; Amendments to IAS 28 published in 2011 Investments in associated entities and joint ventures are applied for annual periods commencing on 1 st January or later; Amendments to IAS 32 Financial instruments: presentation Compensation of financial assets and liabilities are applied for annual periods commencing on 1 st January 2014 or later; Amendments to IFRS 10, IFRS 11 and IFRS 12: Consolidated financial statements, Joint contractual arrangements, Disclosure of information on shares in other entities are applied for annual periods commencing on 1st January 2014 or later; Amendments to IAS 36: Loss in value of assets are applied for annual periods commencing on 1 st January 2014 or later; Amendments to IAS 39: Financial instruments: Recognition and measurement Renewal of derivatives and continuation of hedge accounting are applied for annual periods commencing on 1 st January 2014 or later; The above amendments will not have any significant influence on financial statement. 2.3. Reporting currency and the rounding level applied Polish zloty is the reporting currency in hereby separate financial statement and all amounts are quoted in thousand Polish zloty (if not stated otherwise). 2.4. Duration of activity of the entity Duration of the activity of Apator S.A. is indefinite. Separate financial statement has been prepared assuming that the economy activity will be continued in foreseeable future that is in 12 month period not shorter than since the end of reporting period. 2.5. Approval of financial statement Present separate financial statement was approved and signed by the executive Board of the Company on 23 rd April 2014. Nazwa jednostki: Apator SA Strona 7

Separate annual financial statement 8 3. Separate financial statement of Apator S.A. 3.1. Separate financial statement of financial situation DESCRIPTION NOTE Day 31.12.2013 31.12.2012* Fixed assets - 220 628 221 493 Intangible assets 7.2 4 290 3 057 Property,plant and equipment 7.3 71 942 69 272 Investment properties 7.4 1 320 1 303 Other long-term financial assets 7.5 121 884 126 380 - in related entities 121 601 125 863 - in other entities 283 517 Long-term borrowings granted 7.8-83 - to related entities - 83 Long-term receivables 7.7 41 943 - from other entities 41 943 Deferred tax assets 7.16 21 151 20 455 Current assets - 53 374 52 306 Inventories 7.6 19 458 18 898 Trade receivables 7.7 28 299 25 675 - from related entities 3 093 1 946 - from other entities 25 206 23 729 Current tax assets 7.7 1 141 - Receivables due to other taxes (excluding income tax) and other similar charges 7.7 697 1 666 Other short-term receivables 7.7 932 415 - from related entities - 12 - from other entities 932 403 Other short-term financial assets 7.5 778 131 - in other entities 778 131 Short-term borrowings granted 7.8 85 214 Nazwa jednostki: Apator SA Strona 8

Separate annual financial statement 9 - to related entities 85 214 Cash and cash equivalents 7.9 1 354 4 566 Short term prepayments 7.10 630 741 TOTAL ASSETS - 274 002 273 799 *conversion pursuant to the note 7.31 DESCRIPTION NOTE Day 31.12.2013 31.12.2012* Equity - 207 212 199 082 Share capital 7.11 3 311 3 311 Other capitals 7.12 162 305 138 311 Reserve of remeasurement of defined benefit plan (170) (49) Capital from evaluation of hedging transactions 349 359 Undistributed financial result 41 417 57 150 - undistributed result from previous years 49 - - result of current period 51 300 70 393 - write offs from the profit of current year (9 932) (13 243) Liabilities - 66 790 74 717 Long-term liabilities and provisions 6 029 5 609 Long-term liabilities 7.15 1 423 1 024 - towards other entities 1 423 1 024 Long-term provisions for employee benefit liabilities 7.14 4 606 4 585 Short-term liabilities and provisions 60 761 69 108 Short-term loans and borrowings 7.13 35 702 35 358 - from other entities 35 702 35 358 Trade liabilities 7.15 14 350 13 092 -towards related entities 2 709 2 893 - towards other entities 11 641 10 199 Liabilities due to deferred tax 7.15-4 009 Liabilities due to other taxes (excluding income tax) and other similar charges 7.15 2 505 2 069 Other short-term liabilities 7.15 5 215 11 546 - towards related entities 85 212 Nazwa jednostki: Apator SA Strona 9

Separate annual financial statement 10 - towards other entities 5 130 11 334 Short-term provisions for employee benefit liabilities 7.14 2 366 2 459 Other short-term provisions 7.14 623 575 TOTAL LIABILITIES - 274 002 273 799 Conversion pursuant to the note 7.31 3.2. Separate financial statement of profit and loss account and other comprehensive income DESCRIPTION NOTE Period since 01.01.2013 since 01.01.2012 till 31.12.2013 till 31.12.2012* Sales revenues 7.1 167 862 183 411 Sales revenues of products and services 154 594 151 346 - to related entities 28 100 28 206 - to other entities 126 494 123 140 Sales revenues of goods and materials 13 268 32 065 - to related entities 2 117 6 421 - to other entities 11 151 25 644 Cost of goods sold (120 051) (140 438) Cost of products and services sold (108 449) (112 164) - to related entities (19 780) (23 029) - to other entities (88 669) (89 135) Cost of goods and materials sold (11 602) (28 274) - to related entities (1 997) (5 761) - to other entities (9 605) (22 513) Gross profit on sale 47 811 42 973 Selling costs (9 524) (10 220) Overheads (24 302) (24 163) Profit on sales 13 985 8 590 Other operating revenues, including: 7.18 785 19 674 Nazwa jednostki: Apator SA Strona 10

Separate annual financial statement 11 Revenues 1 746 23 698 Costs (961) (4 024) Profit from operating activity 14 770 28 264 Financial revenues, including: 7.19 36 469 26 116 Revenues 38 198 29 260 Costs (1 729) (3 144) Profit before tax 51 239 54 380 Current income tax 7.16 (604) (4 829) Deferred income tax 7.16 665 20 842 Net profit 51 300 70 393 *conversion pursuant to the note 7.31 DESCRIPTION NOTE Period since 01.01.2013 since 01.01.2012 till 31.12.2013 till 31.12.2012* Other comprehensive income Other comprehensive net income (131) 1 770 Items that can be reclassified to financial result in the future: - Result on hedge accounting with tax effect (10) 1 819 Items that will not be reclassified to financial result in the future: - Reserve of remeasurement of defined benefit plans with tax effect (121) (49) Comprehensive income in total 51 169 72 163 Net profit per ordinary share: - basic 1,55 2,09 - diluted 1,55 2,09 Weighted average number of shares 33 107 028 33 669 870 *conversion pursuant to the note 7.31 Nazwa jednostki: Apator SA Strona 11

Separate annual financial statement 12 DESCRIPTION NOTE Period since 01.01.2013 since 01.01.2012 till 31.12.2013 till 31.12.2012* Profit on operating activity 14 770 28 264 Amortization and depreciation 8 943 7 192 EBITDA 23 713 35 456 *conversion pursuant to the note 7.31 3.3. Separate financial statement of changes in equity DESCRIPTION Share capital Other capitals Reserve of remeasurements of defined benefit plans Capital from valuation of hedging transactions Undistributed financial result TOTAL EQUITY Balance as at 01.01.2012 3 511 125 410 - (1 460) 37 731 165 192 Changes in equity in the period since 01.01.2012 till 31.12.2012 Comprehensive income: - Distribution of the result for supplementary capital - Profit for the period since 01.01.2012 till 31.12.2012-12 901 - - (12 901) - - - - - 70 393 70 393 Other comprehensive income: Items that can be reclassified to financial result in the future: - result on hedge accounting with tax effect - - - 1 819-1 819 Items that will not be reclassified to financial result in the future: - Reserves of remeasurement of defined benefit plans with tax effect - - (49) - - (49) Other comprehensive income in total - - (49) 1 819-1 770 Comprehensive income recognized in the period since 01.01.2012 till 31.12.2012-12 901 (49) 1 819 57 492 72 163 Transactions with shareholders recognized directly in equity Dividends - - - - (24 830) (24 830) Nazwa jednostki: Apator SA Strona 12

Separate annual financial statement 13 DESCRIPTION Share capital Other capitals Reserve of remeasurements of defined benefit plans Capital from valuation of hedging transactions Undistributed financial result TOTAL EQUITY Interim dividends paid - - - - (13 243) (13 243) Purchase of own shares - (200) - - - (200) Release of reserve capital - 17 973 - - - 17 973 Release of reserve capital - (17 973) - - - (17 973) Redemption of own shares (200) - - - - (200) Redemption of own shares - 200 - - - 200 Balance as at 31.12.2012 3 311 138 311 (49) 359 57 150 199 082 DESCRIPTION Share capital Other capitals Reserve of reasurements of defined benefit plans Capital from valuation of hedge transactions Undistributed financial result TOTAL EQUITY Balance as at 01.01.2013 3 311 138 311 (49) 359 57 150 199 082 Changes in equity in the period since 01.01.2013 till 31.12.2013 Comprehensive income: - Distribution of the result for supplementary capital - profit for the period since 01.01.2013 till 31.12.2013-23 994 - - (23 994) - - - - - 51 300 51 300 Other comprehensive income : Items that can be reclassified to financial result in the future: - result on hedge accounting with tax effect - - - (10) - (10) Items that will not be reclassified to financial result in the future: - Reserve of remeasurement of defined benefit plans with tax effect - - (121) - - (121) Other comprehensive income in total - - (121) (10) - (131) Comprehensive income recognized in the period since 01.01.2013 till 31.12.2013-23 994 (121) (10) 27 306 51 169 Nazwa jednostki: Apator SA Strona 13

Separate annual financial statement 14 DESCRIPTION Share capital Other capitals Reserve of reasurements of defined benefit plans Capital from valuation of hedge transactions Undistributed financial result TOTAL EQUITY Transactions with shareholders recognized directly in equity Dividends - - - - (46 350) (46 350) Settlement of interim dividend from previous year - - - - 13 243 13 243 Interim dividend paid - - - - (9 932) (9 932) Balance as at 31.12.2013 3 311 162 305 (170) 349 41 417 207 212 3.4. Separate financial statement of cash flow DESCRIPTION NOTE Period since 01.01.2013 since 01.01.2012 till 31.12.2013 till 31.12.2012 Cash flow from operating activity Profit before tax 51 239 54 380 Adjustments: (27 520) (42 180) Amortization of intangible assets 7.2 1 149 1 029 Depreciation of property, plant and equipment 7.3 7 794 6 163 (Profit) loss on sales of property, plant and equipment and intangible assets (215) (23 405) (Profit) loss on sales of financial assets available for sale 7.19 (255) - (Profit) loss from evaluation of investment properties at fair value 7.18 (160) 102 (Profit) loss due to change in fair value of derivatives (441) (613) Cost of interest 1 463 2 354 Interest received (62) (13) Dividends received 7.19 (36 635) (28 200) Other adjustments (158) 403 Cash from operating activity before changes in current capital 23 719 12 200 Change in inventories (560) 3 391 Nazwa jednostki: Apator SA Strona 14

Separate annual financial statement 15 DESCRIPTION NOTE Period since 01.01.2013 since 01.01.2012 till 31.12.2013 till 31.12.2012 Change in receivables 7.20 (1 323) 9 466 Change in liabilities 7.20 1 163 272 Change in provisions 7.20 (174) 933 Change in accruals and prepayments 110 (350) Cash generated by operating activity 22 935 25 912 Income tax paid (5 754) (449) Net cash from operating activity 17 181 25 463 Cash flow from investing activity Outflows for the purchase of intangibles (2 528) (739) Outflows for the purchase of tangible fixed assets 7.20 (9 944) (17 546) Inflows from sales of tangible fixed assets 598 27 177 Outflows for the purchase of financial assets available for sale (1) - Inflows from the sales of shares in subsidiaries 7 764 - Investments in subsidiaries (3 247) - Borrowings granted (3 000) - Repayments of borrowings received 3 227 222 Interest received 62 14 Dividends received 36 635 28 200 Other inflows (outflows ) (5 009) (2 986) Net cash from investing activity 24 557 34 342 Cash flow from financing activity Inflows from loans and borrowings taken 5 000 26 150 Repayment of loans and borrowings (4 638) (41 000) Interest paid (1 420) (2 273) Dividends paid (43 050) (38 059) Repayment of liabilities due to financial lease (782) (116) Other inflows (outflows) (60) (21) Net cash from financing activity (44 950) (55 319) Nazwa jednostki: Apator SA Strona 15

Separate annual financial statement 16 DESCRIPTION NOTE Period since 01.01.2013 since 01.01.2012 till 31.12.2013 till 31.12.2012 Increase (decrease) of net cash and cash equivalents (3 212) 4 486 Cash and cash equivalents at the beginning of the period 4 566 80 Cash and cash equivalents at the end of the period 1 354 4 566 4. Accounting principles applied 4.1. Basis for preparation (general principles) Separate financial statement has been prepared pursuant to the concept of historical cost, except for measurement of some fixed assets (investment properties) and financial instruments (derivatives) that are measured at fair value. The most significant accounting principles adopted by the entity were presented in points from 4.2.1 to 4.2.18. Principles and policy of accounting presented below were adopted to all the periods presented in financial statement by the Company. Some comparative data were reclassified in order to obtain the conformity with presentation of current period (see Note 7.31). 4.2. Detail principles for measurement of assets and liabilities 4.2.1. Intangibles, cost of research and development Intangibles are assets that meet the following criteria: - they can be excluded or separated from the entity, sold, licensed or given for payment usage to third persons both individually or with related to them contracts, elements of assets or liabilities or - - they are resulted from the contracts or other regulations regardless they are transferable or it is possible to separate them from the entity or due to other reasons or liabilities. Intangibles acquired in separate transaction are recognized is the statement of financial position at the purchase price. After initial recognition, the intangibles are measured pursuant to purchase price or manufacturing cost reduced by redemption and write downs due to decrease of the value. The period of use of intangibles depending on their kind is valuated and recognized as limited or not defined one. Intangibles with not defined period of use and those have not been yet used are subject every year to verification in respect of possible decrease of the value at assets or at the level in relation to the particular assets or at the level of the centre earning the cash. In case of the remaining intangibles annual measurement is carried out to check if there are circumstances that can prove the decrease of their values. Nazwa jednostki: Apator SA Strona 16

Separate annual financial statement 17 The periods of use of particular intangibles are subject to annual verification and if necessary they are adjusted from the beginning of the next financial year. For the amortization of patents and licenses R&D from 2 to 5 years from 3 to 5 years Costs of research and developments Costs of research and developments are not subject to activation and they are represented in the statement of comprehensive income as the costs in the period they were incurred. Costs of research and developments are capitalized only in situation when: - project being performed is exactly defined (for instance the software); - it is likely that the element of assets will bring future economic benefits; - costs related to the project can be reliably estimated Costs of research and development are amortized by the line method during expected period of their usefulness. In case when it is not possible to separate self-manufactured element of assets, the costs of research and development are recognized in comprehensive income statement in the period when they were incurred 4.2.2. Tangible fixed assets Tangibles are tangible assets being in possession of the entity in order to make use them in manufacturing, provision of goods and services or to give them to the third persons for renting or for administration purposes which is expected to be used for more than one period. They are measured pursuant to the purchase price, or cost of manufacturing reduced by depreciation write offs or in calculated value (after revaluation of tangible fixed assets) reduced by depreciation expenses or redemption expenses and write offs due to permanent decrease of the value. According to the approach based on elements, the entity accepts different depreciation rates for significant elements of tangible fixed asset. Tangible fixed assets in the entity cover tangibles with predicted period of their economic usage longer than one year. The commencement of the depreciation is after a month of usage. During the establishment of annual depreciation rates the economic period of the usage of tangible fixed asset is taken into consideration. In case of establishment of annual depreciation rates, economical period of use of fixed asset is taken into account. The correctness of periods and depreciation rates used by the entity are periodically verified by managers of manufacturing departments. For depreciation purposes of tangible fixed assets, line method of depreciation has been adopted. The period of use for particular fixed assets is as follows: Buildings and constructions from 10 to 70 years Machines and equipment from 2 to 25 years Transport means from 4 to 10 years Other tangible fixed assets from 3 to 10 years If during preparation of financial statement some circumstances occurred indicating that balance value of tangibles may not be recovered then the review of tangibles is carried out in respect of possible decrease of value. If there are some circumstances indicating that it could be the decrease of value and the reporting value exceeds estimated value to be recovered then the value of tangibles or the centres earning the cash the tangibles belong are reduced to the level of the value to be recovered. The value being recovered corresponds to the higher one from two values: fair value reduced by sales or useful value costs. In order to establish useful value, estimated cash flow is discounted to current value using gross discount rate reflecting current market prices of the value of the money in the period and risks related to the element of assets. In case of element of assets that does not generate cash inflows significantly in independent manner the value recovered is established for the centre earning cash where this element belongs to. Nazwa jednostki: Apator SA Strona 17