The following report presents financial data only. The full and binding version is available in Polish. K2 INTERNET S.A. Capital Group Annual Consolidated Financial Statement of K2 Internet S.A. Capital Group for the twelve-month period ended December 31, 2012 prepared in accordance with International Financial Reporting Standards Warsaw, March 19, 2013
1. Selected financial data SELECTED FINANCIAL DATA in PLN 000 In EUR 000 2012 2011 2012 2011 I. Revenues from sales of products and goods 56 618 62 780 13 566 15 164 II. EBIT 396 5 967 95 1 441 III. EBITDA 3 033 7 408 727 1 789 IV. Gross profit (loss) 161 6 438 39 1 555 V. Net profit (loss) 172 5 057 41 1 221 VI. Cash flows from operating activities 697 6 699 167 1 618 VII. Cash flows from investing activities - 7 573-3 144-1 815-759 VIII. Cash flows from financing activities 7 251-4 474 1 737-1 081 IX. Total net cash flows 375-918 90-222 X. Total assets 51 265 36 914 12 540 8 358 XI. Liabilities and provisions 26 256 16 939 6 422 3 835 XII. Long-term liabilities 4 794 1 679 1 173 380 XIII. Short-term liabilities 21 462 15 260 5 250 3 455 XIV. Equity 25 009 19 975 6 117 4 523 XV. Share capital 2 485 2 026 608 459 XVI. Weighted average number of shares 2 199 078 2 026 000 2 199 078 2 026 000 XVII. Profit (loss) attributable to the parent company's shareholders 172 4 813 41 1 163 XVIII. Earnings per share (PLN) 0,08 2,38 0,02 0,57 Individual items of assets and liabilities of the statement of financial position were converted into EUR at the average NBP ((the National Bank of Poland)) rate applicable on the last day of the balance sheet period i.e.: - 1 EUR = 4,4168 PLN PLN as at December 31, 2011-1 EUR = 4,0882 PLN as at December 31, 2012 Profit and loss account and cash flow account items were converted into EUR at the rate which is an arithmetic mean of the NBP ((the National Bank of Poland)) fixed exchange rates for the last working day of each month from January to December of each financial period, i.e.: - 1 EUR = 4,1401 PLN in 2011-1 EUR = 4,1736 PLN in 2012 NIP: 951 19 83 801 REGON: 016378720 KRS: 0000059690 Kapitał zakładowy: 2.485.032,00 PLN (opłacony w całości) 1
2. Consolidated statement of financial position of K2 Internet S.A. ASSTES Note 31.12.2012 31.12.2011 NON-CURRENT ASSETS 23041 12053 Intangible assets 1 7 795 5 094 Goodwill - subsidiaries 26 4 089 1 081 Tangible assets 2 7 799 3 306 Shares and interest in subsidiaries and associates 5 62 1 103 Deferred tax assets 14 3 296 1 469 CURRENT ASSETS 28224 24861 Goods 6 34 8 Trade receivables 7 18 958 19 245 Income tax receivables 7 - - Other public receivables 7 3 792 669 Other receivables 7 863 579 Loans granted 4 1 821 2 486 Other assets 8 979 472 Cash and cash equivalents 9 1 777 1 402 Assets classified as held for sale - - Total assets 51265 36914 EQUITY AND LIABILITIES Note 31.12.2012 31.12.2011 EQUITY 25009 19975 Share capital 10 2 485 2 026 Supplementary capital 11 23 214 15 552 Reserve capital 349 349 Previous years profit/loss - 1 211-3 619 Profit/lost of the year 172 4 813 Minority interest - 854 LIABILITIES 26256 16939 Long-term liabilities 4794 1679 Deffered tax provision 14 2 689 1 179 Financial lease liabilities 3 2 105 500 Short-term liabilities 21462 15260 Trade payables 8 165 8 157 Income tax payables - 552 Other public payables 4 388 2 210 Loans and borrowings 3 132 419 Financial lease liabilities 3 1 413 563 Other liabilities 12 600 206 Provision for liabilities 12 802 1 269 Prepayments and accruals 12 2 962 1 884 Total equity and liabilities 51265 36914 NIP: 951 19 83 801 REGON: 016378720 KRS: 0000059690 Kapitał zakładowy: 2.485.032,00 PLN (opłacony w całości) 2
3. Consolidated profit and loss account statement of K2 Internet S.A. Capital Group Note 31.12.2012 31.12.2011 Revenues from sales of products and goods 16 56 618 62 780 Costs of products and goods sold 17-48 133-47 630 Gross profit on sales 8485 15150 Selling costs - - General and administrative costs 17-12 272-9 217 Profit on sales - 3787 5933 Other net operating revenues/expenses 18 4 183 34 EBIT 396 5967 Net financial revenues / costs 19-256 480 Share of net profits of entities - equity method 21-9 Profit before taxation 161 6438 Income tax 14 11-1 381 Net profit/loss 172 5057 Profit (loss) on minority interest - 244 Profit (loss) attributable to the parent company's shareholders 172 4 813 Earnings per share (PLN) 20 0,08 2,38 Diluted earnings per share (PLN) 20 0,08 2,38 Profit (loss) for the period 172 5057 Other comprehensive income - - Podatek dochodowy dotyczący innych całkowitych dochodów - - Other net comprehensive income - - Total net income for the period 172 5057 NIP: 951 19 83 801 REGON: 016378720 KRS: 0000059690 Kapitał zakładowy: 2.485.032,00 PLN (opłacony w całości) 3
4. Consolidated statement of cash flows of K2 Internet S.A. Capital Group 01.01.2012-31.12.2012 01.01.2011-31.12.2011 Cash flows from operating activities Profit (loss) before tax 161 6438 Adjustments for: Depreciation / Amortisation 2 637 1 441 Profits (losses) on interests and foreign exchange differences - 82-114 Profit (loss) from investing activities - 1 554-78 Change in inventories - 25 1 Change in receivables - 3 120-2 885 Change in provisions and accruals 611-726 Change in short-term liabilities 2 087 3 750 Other 41-246 Net cash from operating activities 756 7581 Income tax paid 59-882 Net cash flows from operating activities 697 6699 Cash flows from investing activities Inflows 2571 3529 Sale of tangible fixed assets and intangible assets 132 594 Repayments of loans granted 2 261 2 782 Interest received 178 153 Outflows - 10144-6673 Purchase of intangible assets and tangible fixed assets - 6 686-4 559 Loans granted - 2 241-1 003 Expense on subsidiaries and associates - 1 217-1 111 Net cash flows from investing activities - 7573-3144 Cash flows from financing activities Inflows 9260 419 Proceeds from issue of shares 5 976 - Interest received 2 450 419 Cash and cash equivalents over which control was gained 834 - Outflows - 2009-4893 Issue of shares - - Loans granted - 563 - Dividends - - 4 052 Financial lease instalments - 804-566 Interests - 216-275 Other - 426 - Net cash flows from investing activities 7251-4474 Total net cash flows 375-918 Balance sheet changes in cash and cash equivalents 375-919 Change in cash balance due to foreign exchange differences - 1 Cash and cash equivalents opening balance 1402 2320 Cash and cash equivalents closing balance 1777 1402 - including with restricted access 34 91 NIP: 951 19 83 801 REGON: 016378720 KRS: 0000059690 Kapitał zakładowy: 2.485.032,00 PLN (opłacony w całości) 4
5. Consolidated statement of changes in equity of K2 Internet S.A. Capital Group Share capital Reserve capital from the sales of shares above their nominal value Reserve capital from profit distribution Reserve capital from the sales of shares to employees Previous years profit/loss Profit/loss for the year Minority interest Total Equity As at January 12011 2026 7068 9065 349 172-610 19290 Appropriation of profits in 2010 - - 759 - - 759 - - - Dividends - - - 1 340 - - 2 712-4 052 Netprofit at 31.12.2011 r. - - - - - 4 813 244 5 057 Recognition of K2 Search - - - - - 320 - - - 320 As at 31.12.2011 2026 7068 8484 349-3619 4813 854 19975 As at 31.12.2012 2026 7068 8484 349-3619 4813 854 19975 Appropriation of profits in 2011 - - 2 516-2 297-4 813 - - Netprofit in 2012 - - - - - 172-172 Net loss on non-controlling shares - - - - 111 - - 111 - Buyout of non-controlling shareholders - - 144 - - - - 743-599 Capital increase 459 5 002 - - - - - 5 461 As at 31.12.2012 r. 2485 12070 11144 349-1211 172-25009 5 5 NIP: 951 19 83 801 REGON: 016378720 KRS: 0000059690 Kapitał zakładowy: 2.485.032,00 PLN (opłacony w całości)