FABRYKA FARB I LAKIERÓW ŚNIEŻKA SA

FABRYKA FARB I LAKIERÓW ŚNIEŻKA SA INTERIM CONDENSED FINANCIAL STATEMENTS FOR THE 6MONTH PERIOD ENDED ON 30 JUNE 2015 WITH A REVIEW REPORT BY AN INDEPENDENT AUDITOR Lubzina, 26 August 2015

Table of contents Fabryka Farb i Lakierów Śnieżka Spółka Akcyjna SELECTED FINANCIAL DATA... 4 Interim condensed statement of comprehensive income... 5 Interim condensed statement of financial position... 6 Interim condensed cash flow statement... 7 Interim condensed statement of changes in equity... 8 Notes... 9 1. General information... 9 2. Basis for preparing the interim condensed financial statements... 9 3. Material accounting principles (policy)... 10 4. Change of estimated values... 10 4.1. Professional judgement... 10 4.2. Estimation uncertainty... 11 5. Seasonal nature of business... 11 6. Information on business segments... 11 7. Cash and cash equivalents... 14 8. Dividend payout and proposed dividend payout... 14 9. Revenues and costs... 14 10. Income tax... 14 11. Tangible fixed assets... 15 11.1. Purchase and sale... 15 11.2. Impairment losses... 15 12. Intangible assets... 15 12.1. Purchase and sale... 15 12.2. Impairment losses... 16 13. Inventories... 16 14. Provisions... 16 15. Investment property... 16 16. Noncurrent assets classified as held for sale... 16 17. Investments in subsidiaries, associates and joint subsidiaries... 17 18. Employee benefits... 17 19. Interestbearing bank loans and borrowings... 19 20. Equity securities... 20 21. Accruals... 20 22. Lease receivables... 20 23. Longterm receivables... 21 24. Discontinued operations... 21 25. Financial instruments... 21 26. Objectives and principles of financial risk management... 21 27. Equity management... 21 28. Contingent liabilities and contingent assets... 21 28.1. Court cases... 21 28.2. Other contingent liabilities... 21 29. Investment liabilities... 21 30. Transactions with related entities... 22 31. Shares, stock and other longterm assets... 22 2/23

32. Causes of differences between changes resulting from the statement of financial position and changes resulting from the cash flow statement as well as additional information about the cash flow statement... 22 33. Events after the balance sheet date... 23 3/23

SELECTED FINANCIAL DATA Fabryka Farb i Lakierów Śnieżka Spółka Akcyjna in thousand PLN in thousand EUR 6month period ended on 30 June 2015/ as of 30 June 2015 6month period ended on 30 June 2014/ as of 30 June 2014 6month period ended on 30 June 2015/ as of 30 June 2015 6month period ended on 30 June 2014/ as of 30 June 2014 not audited not audited not audited not audited I. Net revenues from the sales of products, goods and materials 265,840 255,382 64,304 61,120 II. Operating profit (loss) 22,316 13,548 5,398 3,242 III. Gross profit (loss) 15,654 14,185 3,787 3,395 IV. Net profit (loss) 12,565 11,568 3,039 2,769 V. Comprehensive income for the period 12,823 11,316 3,102 2,708 VI. Net cash flows from operating activities (5,478) 7,889 (1,325) 1,888 VII. Net cash flows from investment activities (8,105) (6,288) (1,961) (1,505) VIII. Net cash flows from financial activities 16,856 20,861 4,077 4,993 IX. Total net cash flows 3,273 22,462 792 5,376 X. Total assets 403,184 403,179 96,124 96,897 XI. Liabilities and provisions for liabilities 299,268 285,538 71,349 68,624 XII. Longterm liabilities 65,437 57,405 15,601 13,796 XIII. Shortterm liabilities 233,831 228,133 55,748 54,828 XIV. Equity 103,916 117,641 24,775 28,273 XV. Share capital 12,618 12,618 3,008 3,033 XVI. Number of shares 12,617,778 12,617,778 12,617,778 12,617,778 XVII. Earnings (loss) per ordinary share (in PLN / EUR) 1.00 0.92 0.24 0.22 XVIII. Diluted earnings (loss) per ordinary share (in PLN / EUR) 1.00 0.92 0.24 0.22 XIX. Book value per share (in PLN / EUR) 8.24 9.32 1.96 2.24 XX. Diluted book value per share (in PLN / EUR) 8.24 9.32 1.96 2.24 XXI. Declared or paid dividend per share (in PLN / EUR) 3.10 2.50 0.74 0.60 EUR exchange rates used for translations in the reports: The individual items of the condensed statement of comprehensive income have been converted according to the average EUR exchange rate applicable in the period, i.e.: over 6 months of 2015: 4.1341 over 6 months of 2014: 4.1784 The individual items of the statement of financial position have been converted according to the EUR exchange rate at the end of the period: as of 30 June 2015: 4.1944 as of 30 June 2014: 4.1609 4/23

INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME Continuing operations Note 3month period ended on 30 June 2015 (not audited) 6month period ended on 30 June 2015 (not audited) 3month period ended on 30 June 2014 (not audited) 6month period ended on 30 June 2014 (not audited) Revenues from the sales of products 147,412 237,501 137,666 223,081 Revenues from the sales of goods 11,650 19,894 14,523 23,366 Revenues from the sales of materials 4,229 8,445 4,455 8,935 Sales revenues 6, 9 163,291 265,840 156,644 255,382 Costs of goods sold 9 98,379 168,495 98,056 166,914 Gross profit/(loss) on sales 64,912 97,345 58,588 88,468 Other operating income 718 889 179 136 Distribution expenses 34,407 48,667 33,502 48,833 Administrative expenses 12,376 24,941 11,458 23,061 Other operating costs 1,852 2,310 3,307 3,162 Operating profit/(loss) 16,995 22,316 10,500 13,548 Financial income 1,139 497 2,096 2,562 Financial costs 1,797 7,159 1,000 1,925 Gross profit/(loss) 16,337 15,654 11,596 14,185 Income tax 10 2,016 3,089 1,806 2,617 Net profit/(loss) on continuing operations 14,321 12,565 9,790 11,568 Discontinued operations Profit/(loss) on discontinued operations Net profit/(loss) for the period 14,321 12,565 9,790 11,568 Other comprehensive income 258 258 (252) (252) Items subject to reclassification under profit/(loss) in subsequent reporting periods: Foreign exchange gains/losses on translation of foreign undertakings Items not subject to reclassification to profit/(loss) in subsequent reporting periods: 258 258 (252) (252) Actuarial gains/losses 258 258 (252) (252) Other net comprehensive income 258 258 (252) (252) COMPREHENSIVE INCOME FOR THE PERIOD 14,579 12,823 9,538 11,316 Profit/(loss) per share: basic, from profit for the reporting period 1.13 1.00 0.78 0.92 basic, from profit on continued operations for the reporting period 1.13 1.00 0.78 0.92 diluted, from profit for the reporting period 1.13 1.00 0.78 0.92 diluted, from profit on continued operations for the reporting period 1.13 1.00 0.78 0.92 5/23

INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION as of 30 June 2015 Note 30 June 2015 (not audited) 31 December 2014 ASSETS Noncurrent assets 167,415 167,687 Tangible fixed assets 11 131,187 132,536 Investment property 15 11,551 11,821 Intangible assets 12 1,594 1,418 Financial assets held for sale 58 58 Shares, stock and other longterm assets 18,888 19,338 Longterm receivables 23 2,119 2,516 Deferred income tax assets 2,018 Current assets 235,667 141,576 Inventories 13 67,556 57,463 Trade and other receivables 5 150,627 70,625 Income tax receivables Derivative financial instruments Other financial assets 458 8 Other nonfinancial assets 910 637 Cash and cash equivalents 7 16,116 12,843 Noncurrent assets classified as held for sale 16 102 102 TOTAL ASSETS 403,184 309,365 LIABILITIES AND EQUITY Equity (attributable to shareholders of the parent company) 103,916 130,701 Share capital 12,618 12,618 Share premium Equity shares Other reserve capitals Revaluation reserve Supplementary capital 88,594 103,563 Retained earnings / Uncovered losses 2,704 14,520 Longterm liabilities 65,437 67,503 Interestbearing credits and loans 19 64,108 63,365 Provisions 14 1,329 1,524 Other liabilities 29 Deferred income tax provisions 14 2,614 Accruals Short term liabilities 233,831 111,161 Trade and other liabilities 5 131,264 40,106 Current part of interestbearing loans and borrowings 19 91,022 67,634 Derivative financial instruments Income tax liabilities 5,612 2,676 Accruals 21 4,435 342 Provisions 14 1,498 403 Liabilities directly related to noncurrent assets classified as held for sale Total liabilities 299,268 178,664 TOTAL EQUITY & LIABILITIES 403,184 309,365 6/23

INTERIM CONDENSED CASH FLOW STATEMENT 6month period ended on 30 6month period ended on 30 Note Cash flows from operations June 2015 (not audited) June 2014 (not audited) Profit before tax 15,654 14,186 Adjustments: 14,359 8,807 Amortisation and depreciation of fixed and intangible assets 8,333 7,885 Impairment losses on property, plant and equipment (Profit) loss on investment activities (14) (54) (Profit) loss on sales of financial assets available for sales Profit (loss) on measurement of investment property at fair value (Profit) loss on changes in the fair value of financial assets disclosed at fair value (Profit) loss on changes in the fair value of financial assets disclosed at fair value Foreign exchange gains/losses 4,200 1,075 Unpaid interest Share in (profit) loss of associates Writedown on negative goodwill Interest received Net interest and dividends 1,840 (99) Other adjustments Cash from operating activities before changes in working capital 30,013 22,993 Change in inventories (10,093) 2,038 Movement in receivables 32 (79,364) (70,263) Movement in liabilities 32 53,825 51,769 Change in provisions 32 1,158 1,214 Movement in prepayments and accruals 3,820 5,679 Cash generated during operating activities (641) 13,430 Interest expenses Income tax paid (4,837) (5,541) Other Net cash from operating activities (5,478) 7,889 Cash flows from investment activities Expenses on acquisition of intangible assets Inflows from sales of intangible assets Payments for property, plant and equipment and intangible assets (8,473) (8,672) Inflows from sales of property, plant and equipment 352 172 Expenses related to acquisition of investment real estate Inflows from lease of fixed assets Outflows on acquisition of financial assets available for sale Inflows from the sales of financial assets available for sale Outflows on acquisition of financial assets held for trading Inflows relative to borrowing repayments Outflows on acquisition of subsidiaries (less the acquired cash) (550) Inflows from sales of related parties Inflows from government subsidies received Loans granted Received payments under borrowings granted 330 Interest received 16 20 Dividends received 2,412 Net cash used in investment activities (8,105) (6,288) Cash flows from financial activities Net inflows from issue of shares Acquisition of own shares Inflows from issue of debt securities Redemption of debt securities Inflows from loans and borrowings taken out 62,209 28,808 Repayment of loans and borrowings (42,546) (5,308) Repayment of liabilities under finance lease (107) (153) Other inflows Interest (1,948) (1,889) Other outflows / inflows 35 78 Dividends and founders certificates paid (787) (675) Net cash from financial activities 16,856 20,861 Net increase (decrease) in cash and cash equivalents 3,273 22,462 Cash and cash equivalents at the beginning of the period 12,843 20,414 Movements in cash and cash equivalents relative to foreign exchange gains/losses Movements in cash relative to due interest Cash and cash equivalents at the end of the period 16,116 42,876 7/23

INTERIM CONDENSED STATEMENT OF CHANGES IN EQUITY Note Share capital Fabryka Farb i Lakierów Śnieżka Spółka Akcyjna Share premium Equity shares Other reserve capitals Supplementary capital Revaluation reserve Retained earnings / uncovered losses As of 1 January 2015 12,618 103,563 14,520 130,701 Net profit/(loss) for the period 12,565 12,565 Reclassification for supplementary capital from distribution of profit Other net comprehensive income for the period 258 258 Comprehensive income for the period Issue of shares Cost of the issue of shares Sharebased payments Acquisition of own shares Founders' certificates paid (493) (493) Declared payment of dividend 8 (14,969) (24,146) (39,115) As of 30 June 2015 (not audited) 12,618 88,594 2,704 103,916 As of 1 January 2014 12,618 113,681 12,007 138,306 Net profit/(loss) for the period 11,568 11,568 Reclassification for supplementary capital from distribution of profit Other net comprehensive income for the period (252) (252) Comprehensive income for the period Issue of shares Cost of the issue of shares Sharebased payments Acquisition of own shares Founders' certificates paid (437) (437) Declared payment of dividend 8 (10,118) (21,426) (31,544) As of 30 June 2014 (not audited) 12,618 103,563 1,460 117,641 Total equity 8/23

NOTES 1. General information Fabryka Farb i Lakierów Śnieżka S.A. ("Company") is a joint stock company based in Lubzina and its shares are publicly traded. The Company's interim condensed financial statements cover the 6month period ended on 30 June 2015 and contain comparative figures for the 6month period ended on 30 June 2014 and figures as of 31 December 2014. The statement of comprehensive income and the notes to the statement of comprehensive income include data for the 3month period ended on 30 June 2015 as well as comparative figures for the 3 month period ended on 30 June 2014 the figures were neither reviewed nor audited by a statutory auditor. The company is entered in the register of entrepreneurs of the National Court Register maintained by the District Court in Rzeszów, 12th Economic Department of the National Court Register, under KRS no. 0000060537. The Company has been assigned the statistical number REGON 690527477. The duration of the Company is unlimited. The Company's core business is the manufacture of paints, varnishes, adhesives, solvents, etc., On 24 August 2015, these interim condensed financial statements of the Company for the 6month period ended on 30 June 2015 were approved by the Management Board for publication. The Group also prepared the interim condensed consolidated financial statements for the 6month period ended on 30 June 2015, which were approved by the Management Board for publication on 26 August 2015. 2. Basis for preparing the interim condensed financial statements These interim condensed financial statements have been prepared in accordance with the International Financial Reporting Standards approved by the EU ( IFRS ), in particular in accordance with International Accounting Standard 34. As at the day when these statements were approved for publication, in consideration of the IFRS implementation process taking place in the EU and the Company's business, and with regard to the accounting principles applied by the Company, there is no difference between the already effective IFRS and the IFRS approved by the EU. The International Financial Reporting Standards include standards and interpretations approved by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC). These interim condensed financial statements are presented in PLN and all figures, unless indicated otherwise, are provided in thousands of PLN. These interim condensed financial statements have been prepared based on the going concern assumption by the Company in the foreseeable future. As of the day of the approval of these financial statements, no circumstances implying threats to the business continuity of Company have been confirmed. The interim condensed financial statements do not include full information and disclosures required in the annual financial statements and they should be read in conjunction with the Company's financial statements for the year ended on 31 December 2014, which were approved for publication on 16 April 2015. The interim financial result may not fully reflect realisable financial result for the financial year. 9/23

3. Material accounting principles (policy) The accounting principles (policy) used for preparing the interim condensed financial statements are consistent with the principles applied when preparing the Company's annual financial statements for the year ended on 31 December 2014, except for the application of new or amended standards and interpretations effective for annual periods beginning on 1 January 2015 or later. Amendments resulting from the review of IFRS 20112013 including: IFRIC 21 Levies Amendments to IFRS 3 Business Combinations The amendments clarify that not only joint ventures, but also joint contractual arrangements remain outside the scope of IFRS 3. This exception applies only to preparation of financial statements of a joint contractual arrangement. The amendment is applied prospectively. The application of these amendments did not affect the Company's financial position or its performance. Amendments to IFRS 13 Fair value measurement The amendments clarify that the exception related to an investment portfolio applies not only to financial assets and financial liabilities, but also to other contracts covered by IAS 39. The amendments are applied prospectively. The application of these amendments did not affect the Company's financial position or its performance. Amendments to IAS 40 Investment property A description of additional services included in IAS 40 distinguishes investment property from property occupied by an owner (i.e. from tangible fixed assets). The amendment is applied prospectively and explains that it is IFRS 3, not a definition of additional services included in IAS 40, that is used to specify whether a transaction constitutes acquisition of an asset or venture. The application of these amendments did not affect the Company's financial position or its performance. The interpretation clarifies that an entity recognises a liability for a levy when the obligating event, i.e. the activity that triggers payment, occurs in accordance with the provisions of law. In the case of fees which are due after the minimum threshold has been exceeded, an entity does not recognise a liability until the moment this threshold is reached. IFRIC 21 is applied retrospectively. The application of these amendments did not affect the Company's financial position or its performance. The Company did not decide to perform an early adoption of any standards, interpretations or revisions which have already been published but are not yet effective. 4. Change of estimated values 4.1. Professional judgement In the application of the accounting principles (policy) to the issues stated below, the most important aspect, apart from the accounting estimates, was the professional judgment of the management. One of the areas which require judgment on the part of the management is the verification of indications for the impairment of investments in related parties. Lease is another area where, in addition to accounting estimates, the Company uses professional judgment. The Company classifies lease as operating or financial lease based on the assessment of the extent to which the risks and benefits from holding the subject of lease are attributable to the lessor and to the lessee. This judgement is based on the economic content of each transaction. 10/23

4.2. Estimation uncertainty The text below discusses the key assumptions concerning the future and other key sources of uncertainty at the balance sheet date that have a significant risk of causing a material adjustment to the carrying value of assets and liabilities in subsequent financial periods. 4.2.1. Measurement of provisions for employee benefits Provisions for employee benefits have been estimated using actuarial methods. 4.2.2. Deferred tax asset The Company recognises deferred tax assets based on the assumption that in the future it will make a tax profit making it possible to use them. However, deterioration of the generated tax results in the future may deem this assumption invalid. 4.2.3. Amortisation and depreciation rates The amortisation and depreciation rates are based on the expected economic useful life of property, plant and equipment and intangible assets. Items of PP&E or their material and separate parts are depreciated with the straightline method over their useful life. Depreciation and amortisation allowances are made as long as the residual value of an asset does not exceed its carrying value. Every year the Company verifies the adopted economic useful lives based on current estimates. 4.2.4. Revaluation allowances for receivables As at the balance sheet date, the Company verifies whether there is objective proof of impairment of receivables. If the recoverable value of an asset is lower than its carrying value, the Company makes a revaluation allowance to the present value of the planned cash flows. Revaluation allowances for trade receivables 30 June 2015 (not audited) 31 December 2014 Revaluation allowances for receivables at the beginning of the period 2,961 3,113 increases 872 975 decreases 486 1,127 Revaluation allowances for receivables at the end of the period 3,347 2,961 5. Seasonal nature of business Given the seasonal nature of the Company's business, higher operating revenues and profits are usually generated in Q2 and Q3 of every financial year. Higher sales revenues during summer are attributable mainly to a higher demand for the Company's products. The existing phenomenon of the seasonal nature affects trade receivables and liabilities which are significantly higher in Q2 and Q3 of the financial year as compared to trade receivables and liabilities at the end of December of the previous year. As of 30 June 2015, as compared to 31 December 2014, receivables increased by PLN 80,002 thousand, while liabilities increased by PLN 91,158 thousand. 6. Information on business segments For managerial purposes, the Company's business has been segmented based on its geographic sales markets. The following reporting and operating segments have been identified: Poland, Ukraine, Belarus, Russia, Moldova and other. 11/23

The Management Board monitors separate operating results of the segments in order to make decisions concerning allocation of resources, evaluate the consequences of this allocation and the results of operation. The evaluation of operating results is based on the operating profit or loss. The Company's financing (including financial costs and revenues) and income tax are monitored at the Company level and not allocated to the segments. Transaction prices applied for transactions between operating segments are determined at arm s length, by analogy to transactions with unrelated parties. The segment result is calculated by deducting the prime cost of sale and a portion of selling costs (mainly marketing and transport costs), which are assigned to individual segments, from the sales revenue. Unallocated costs fully comprise general administrative expenses and the portion of selling costs which cannot be directly allocated to individual segments. The calculation of the result of individual segments is intended to assess every market individually and to outline directions for growth as well as for selling and marketing activities. Individual items of assets and equity and liabilities allocated by the Company to a given segment are analysed by the Management Board. The main criterion based on which the Company allocates the carrying values to specific segments is the operating territory of the Company's counterparties. Segment results for the 6month period ended on 30 June 2015 (not audited) Continuing operations Poland Ukraine Belarus Russia Moldova Other Total Discontinued operations Total operations Segment revenues 229,856 10,985 12,347 4,050 3,999 4,603 265,840 The Company did not discontinue its operations in 265,840 the presented period. Total segment revenues 229,856 10,985 12,347 4,050 3,999 4,603 265,840 265,840 Segment profit/loss 52,462 2,300 4,852 1,497 1,485 1,279 63,875 63,875 Nonassigned costs Other operating income Other operating costs Net loss on discontinued operations 40,138 889 2,310 Profit on operating activities 22,316 Financial income 497 Financial costs 7,159 Profit before tax 15,654 Income tax 3,089 Net profit 12,565 Segment results for the 3month period ended on 30 June 2015 (not audited) Continuing operations Poland Ukraine Belarus Russia Moldova Other Total Discontinued operations Total operations Segment revenues 142,000 6,062 6,970 2,617 2,681 2,961 163,291 The Company did not discontinue its operations in 163,291 the presented period. Total segment revenues 142,000 6,062 6,970 2,617 2,681 2,961 163,291 163,291 Segment profit/loss 32,959 1,326 2,555 974 1,013 707 39,534 39,534 Nonassigned costs Other operating income Other operating costs Net loss on discontinued operations 21,405 718 1,852 Profit on operating activities 16,995 Financial income 1,139 Financial costs 1,797 Profit before tax 16,337 Income tax 2,016 Net profit 14,321 12/23

Other information on geographic segments Poland Ukraine Belarus Russia Moldova Other Total Segment assets 135,945 18,380 7,403 432 1,247 3,649 403,184 Trade receivables 135,882 1,611 4,852 411 1,247 3,649 147,652 Investments in other parties 63 16,769 2,551 21 19,404 Nonallocated assets of an entity 236,128 Segment equity and liabilities 70,945 77 11 15,360 403,184 Trade liabilities 70,945 77 11 15,360 86,393 Nonallocated liabilities of an entity 316,791 Segment results for the 6month period ended on 30 June 2014 (not audited) Continuing operations Poland Ukraine Belarus Russia Moldova Other Total Discontinued operations Total operations Segment revenues 209,139 14,266 17,421 5,695 4,619 4,242 255,382 The Company did not discontinue its operations in 255,382 the presented period. Total segment revenues 209,139 14,266 17,421 5,695 4,619 4,242 255,382 255,382 Segment profit/loss 40,948 3,305 5,154 1,511 1,330 1,452 53,700 53,700 Nonassigned costs Other operating income Other operating costs Net loss on discontinued operations 37,126 136 3,162 Profit on operating activities 13,548 Financial income Financial costs 2,562 1,925 Profit before tax 14,185 Income tax 2,617 Net profit 11,568 Segment results for the 3month period ended on 30 June 2014 (not audited) Continuing operations Poland Ukraine Belarus Russia Moldova Other Total Discontinued operations Total operations Segment revenues 129,261 8,613 9,672 3,993 2,796 2,309 156,644 The Company did not discontinue its operations in 156,644 the presented period. Total segment revenues 129,261 8,613 9,672 3,993 2,796 2,309 156,644 156,644 Segment profit/loss 25,424 2,296 2,647 1,033 786 627 32,813 32,813 Nonassigned costs 19,185 Other operating income 179 Other operating costs 3,307 Net loss on discontinued operations Profit on operating activities 10,500 Financial income 2,096 Financial costs 1,000 Profit before tax 11,596 Income tax 1,806 Net profit 9,790 Other information on segments for the 6month period ended on 30 June 2014 (not audited) Poland Ukraine Belarus Russia Moldova Other Total Segment assets 112,508 21,227 8,042 586 1,007 3,525 403,179 Trade receivables 112,445 4,458 5,491 565 1,007 3,525 127,491 Investments in other parties 63 16,769 2,551 21 19,404 Nonallocated assets of an entity 256,284 Segment equity and liabilities 65,266 138 15 15,012 403,179 Trade liabilities 65,266 138 15 15,012 80,431 Nonallocated liabilities of an entity 316,791 13/23

7. Cash and cash equivalents For the purpose of the interim condensed cash flow statements, cash and cash equivalents include the following items: as of 30 June 2015 (not audited) as of 30 June 2014 (not audited) Cash in hand 48 46 Shortterm deposits up to 3 months 3,842 942 Commercial papers 90 Cash at bank 12,226 41,798 16,116 42,876 8. Dividend payout and proposed dividend payout The 2014 ordinary share dividend, paid on 3 July 2015, amounted to PLN 39,115 thousand (2013 dividend paid on 1 July 2014: PLN 31,544 thousand). The dividend paid from the 2014 profit amounted to PLN 24,146 thousand, and the amount of PLN 14,969 thousand was covered using the supplementary capital. The dividend amount constitutes liabilities as of 30 June 2015. The value of 2014 dividend per share was PLN 3.10 (2013: PLN 2.50). The Company did not pay advances on dividend for 2015 and 2014. 9. Revenues and costs In the 6month period ended on 30 June 2015, in comparison with the corresponding period of 2014, the Company's revenues from sales of products, goods and materials rose by 4.1%. The biggest increase, i.e. by 6.5%, was recorded in the sales of the Company's products. In this period the Company's prime cost of sale rose by 0.9% on the corresponding 6month period of 2014. 10. Income tax The main items of the tax liability in the statement of comprehensive income are as follows: for the 3month period ended on 30 June 2015, not audited for the 6month period ended on 30 June 2015, not audited for the 6month period ended on 30 June 2014, not audited for the 6month period ended on 30 June 2014, not audited Disclosed in profit or loss Current income tax 3,694 7,368 2,800 7,065 Current income tax charge 3,694 7,368 2,800 6,963 Adjustments regarding current income tax brought forward 102 Deferred income tax (1,678) (4,279) (994) (4,448) Due to occurrence and reversal of temporary differences (1,678) (4,279) (994) (4,448) Tax burden disclosed in the statement of comprehensive income 2,016 3,089 1,806 2,617 The reconciliation of the income tax on gross profit(loss) before taxation at the statutory tax rate to the income tax calculated at the effective tax rate of the Company is as follows: 14/23

As of 30 June 2015 As of 30 June 2014 not audited not audited Pretax profit (loss) gross on continued operations 15,654 14,185 Pretax profit/(loss) /loss on discontinued operations Other comprehensive income 258 (252) Gross profit/(loss) before tax 15,912 13,933 Tax at the statutory tax rate applicable in Poland amounting to 19% (2014: 19%) 3,023 2,647 Costs not recognised as tax deductible expenses, of which: 188 165 Entertainment expenses 81 94 Donations 70 44 State Fund for Rehabilitation of Disabled Persons (PFRON) 20 11 Inventory scrapping costs 10 12 Fines, compensation, penalties 7 4 Other Nontaxable revenues, of which: (182) (341) Dividends (38) (317) VAT on writtenoff receivables (89) Other (55) (24) Deducted donations (Article 18) 60 44 Loss from previous years subject to deduction Adjustment of tax from previous years 102 Total income tax disclosed in the statement of comprehensive income 3,089 2,617 Tax at the effective interest rate of 19.41% (2014: 18.78%) 3,089 2,617 11. Tangible fixed assets 11.1. Purchase and sale In the 6month period ended on 30 June 2015, the Company purchased property, plant and equipment in the value of PLN 6,396 thousand, including the following expenditures: PLN 2,120 thousand for buildings and structures, PLN 2,935 thousand for the purchase of machinery and equipment, PLN 566 thousand for means of transport and PLN 775 thousand for other PP&E (expenditures in the 6month period ended on 30 June 2014: PLN 7,429 thousand). In the 6month period ended on 30 June 2015, the Company sold property, plant and equipment in the net value of PLN 377 thousand (in the 6month period ended on 30 June 2014: PLN 139 thousand). 11.2. Impairment losses In the period ended on 30 June 2015 and in the period ended on 30 June 2014 the Company did not recognise impairment losses on fixed assets. 12. Intangible assets 12.1. Purchase and sale In the 6month period ended on 30 June 2015, the Company purchased intangible assets in the value of PLN 469 thousand (in the 6month period ended on 30 June 2014: PLN 155 thousand). In the 6month periods ended on 30 June 2015 and 30 June 2014, the Company did not sell any intangible assets. 15/23

12.2. Impairment losses In the period ended on 30 June 2015 and in the period ended on 30 June 2014, the Company did not recognise any impairment losses on intangible assets. 13. Inventories As of 30 June 2015, the Company released impairment losses on inventory in the amount of PLN 658 thousand (as of 30 June 2014, the Company reduced the value of inventory by PLN 406 thousand). This amount has been included under the "Other operating income" item. The released impairment losses on inventory refer in 8% to impairment losses due to the prudence principle. 14. Provisions A list of provisions as of 30 June 2015 and as of 31 December 2014 is presented in the table below: as of 30 June 2015 (not audited) as of 31 December 2014 1. Deferred income tax provisions 2,614 2. Provisions for retirement and similar benefits, including: 2,827 1,927 Longterm 1,329 1,524 retirement and annuity gratuities, posthumous and anniversary benefits 1,329 1,524 Shortterm 1,498 403 unused holiday leave 1,293 226 retirement and annuity gratuities, posthumous and anniversary benefits 205 177 15. Investment property As at 30 June 2015, Fabryka Farb i Lakierów Śnieżka S.A. holds the following investment real properties: in Chojnice, Pomeranian Voivodeship, comprising land, perpetual usufruct of land, buildings and structures. As of 30 June 2015, the value of the real property is PLN 8,947 thousand. Revenue from rents from the abovementioned real properties in H1 2015 amounted to PLN 383 thousand; in Biała Podlaska, Podlaskie Voivodeship, comprising perpetual usufruct of land and buildings. As of 30 June 2015, the value of the real property is PLN 2,604 thousand. Revenue from rents from the abovementioned real properties in H1 2015 amounted to PLN 134 thousand. The value of the investment real property as of 31 December 2014 was PLN 11,821 thousand. 16. Noncurrent assets classified as held for sale As a result of applying IFRS 5 Noncurrent Assets Held for Sale and Discontinued Operations, the Company classifies an item of noncurrent assets under the abovementioned assets due to the fact that the carrying value of that item will be recovered mostly by way of sales transactions and not through further use. As of 30 June 2015, this group includes the real property located in Żabieniec of the total value of PLN 102 thousand. 16/23

As of 31 December 2014, the group includes the real property located in Chojnice, comprising land in the total value of PLN 102 thousand. Noncurrent assets held for sale have been reclassified due to the lack of a possibility to sell the real property in Chojnice within the closest 12 months and, at the same time, high probability of selling the real property in Żabieniec in the same period. The real property in Chojnice will still be used by the Company. 17. Investments in subsidiaries, associates and joint subsidiaries In the 6month period ended on 30 June 2015 economic and political uncertainties persisted in Ukraine. Current and future events in Ukraine may negatively affect the financial result and situation of FFiL Śnieżka and its Ukrainian subsidiary to the extent that currently may not be estimated. Given the business model adopted for subsidiary in Yavoriv, Ukraine, which manufactures paints, varnishes and compounds, in the opinion of the Management Board as of the balance sheet date there is no need to make revaluation allowances for assets. In H1, 2015 the Company carried out an asset impairment test in its subsidiary ŚnieżkaUkraina Sp. z o.o., which showed no need to recognise impairment losses. The current results of ŚnieżkaUkraina Sp. z o.o. show improvement in relation to the corresponding period of the previous year, which constitutes the basis for maintaining the existing strategy towards this subsidiary. 18. Employee benefits Main assumptions for the measurement of employee benefits as of the reporting date: 30 June 2015 30 June 2014 (not audited) (not audited) Actual rate of return on investments (%) 3.40% 3.60% Employee turnover depending on age 1%15% 1%5% Anticipated remuneration growth rate (%) 1.70% 2.30% 17/23

Provisions for retirement pensions and similar benefits Retirement and Anniversary Unused holiday Posthumous benefits annuity gratuities benefits leave Total Opening balance as of 1 January 2015 612 852 237 226 1,927 Current employment costs 38 52 26 1,293 1,409 Actuarial (gains) and losses (98) (135) (25) (258) Benefits paid (9) (18) (28) (226) (281) Past employment costs Interest expenses 11 16 3 30 Closing balance as of 30 June 2015 (not audited) 554 767 213 1,293 2,827 SHORTTERM PROVISIONS 65 65 75 1,293 1,498 LONGTERM PROVISIONS 489 702 138 1,329 Retirement and Anniversary Unused holiday Posthumous benefits annuity gratuities benefits leave Total Opening balance as of 1 January 2014 454 660 223 134 1,471 Current employment costs 28 43 26 1,287 1,384 Actuarial (gains) and losses 87 141 24 252 Benefits paid (13) (25) (35) (134) (207) Past employment costs Interest expenses 13 20 5 38 Closing balance as of 30 June 2014 (not audited) 569 839 243 1,287 2,938 SHORTTERM PROVISIONS 52 55 66 1,287 1,460 LONGTERM PROVISIONS 517 784 177 1,478 Change of the adopted investment rate of return by one percentage point: Increase (thousand PLN) Decrease (thousand PLN) 30 June 2015 (not audited) (57) 183 Impact on total costs of current employment and interest expenses 53 56 Impact on liabilities due to specific performances (110) 127 30 June 2014 (not audited) (140) 167 Impact on total costs of current employment and interest expenses (3) 3 Impact on liabilities due to specific performances (137) 164 Change of the remuneration growth rate by one percentage point: Increase (thousand PLN) Decrease (thousand PLN) 30 June 2015 (not audited) 208 (76) Impact on total costs of current employment and interest expenses 80 36 Impact on liabilities due to specific performances 128 (112) 30 June 2014 (not audited) 178 (152) Impact on total costs of current employment and interest expenses 14 (12) Impact on liabilities due to specific performances 164 (140) 18/23

19. Interestbearing bank loans and borrowings LOANS AND BORROWINGS as of 30 June 2015 Interest rate as of 31 December 2014 Loans (not audited) Loan taken with Pekao S.A. O/Dębica 29,696 1M WIBOR + margin 6,607 Loan taken with PKO BP O/Rzeszów 20,410 1M WIBOR /1M LIBOR+ margin Loan taken with Bank Handlowy S.A. in Warsaw 28,710 1M WIBOR /1M 29,797 LIBOR+ margin Loan taken with PBS O/Dębica 1M WIBOR + margin Loan taken with ING Bank Śląski O/Katowice 11,100 1M WIBOR + margin 9,336 Loan taken with ING Bank Śląski O/Katowice 1M LIBOR + margin 11,935 Loan taken with DNB Bank Polska Warszawa 2,235 1M WIBOR + margin Loan taken with DNB Bank Polska Warszawa 1M LIBOR + margin 13,963 Total loans 92,151 71,638 Borrowings 62,979 59,361 Borrowings from a related company TM INVESTMENT 62,979 59,361 Total loans and borrowings 155,130 130,999 As at 30 June 2015, loans and borrowings amount to PLN 155,130 thousand, with the longterm part amounting to PLN 64,108 thousand. Loan collaterals in individual banks are presented in the following table: Bank Pekao S.A. branch in Dębica Bank PKO BP S.A. branch in Rzeszów Podkarpacki Bank Spółdzielczy branch in Dębica ING Bank Śląski S.A. branch in Katowice CITI BANK HANDLOWY S.A. branch in Cracow DNB Bank Polska S.A. Warszawa Registered pledge on fixed assets in the amount of PLN 8,800 thousand, transfer of title to the abovementioned fixed assets, joint contractual mortgage to the amount of PLN 30,000 thousand on the real property in Pustków with the assignment of rights from the insurance policy, power of attorney to dispose of the company's current accounts in BPH, statement on submission to enforcement proceedings. Collateral mortgage on the right of perpetual usufruct of land and developed real property in Brzeźnica for the amount of PLN 25,000,000, transfer of cash receivables from the insurance contract of the property constituting security, clause providing for deduction of cash on all accounts in PKO BP, Power of attorney to dispose of the Company's current account in PBS, blank promissory note, statement on voluntary submission to enforcement proceedings to the amount of PLN 1,000 thousand Assignment of nonencumbered claims with monitoring of receivables (the share of claims covered by the assignment at the end of each quarter not lower than 60% of the loan amount), collateral mortgage to the amount of PLN 30,000,000 on the real property in Biała Podlaska, assignment of rights from the real property insurance policy to the amount not lower than PLN 3,500,000, registered pledge to the amount of PLN 9,000,000 thousand on finished goods of the warehouse in Brzeźnica, assignment of rights from the inventory insurance policy, statement on submission to enforcement proceedings Joint collateral mortgage to the amount of PLN 11,250 thousand on the right of perpetual usufruct of the real property in Chojnice and the related right of ownership of a part of a service and commercial building as well as the real property located in Chojnice together with the assignment of rights from the insurance agreement, registered pledge to the amount of PLN 8,000 thousand on the inventory of the warehouse in Lubzina, assignment of rights from the insurance policy for the abovementioned inventory, civillaw suretyship of "TM INVESTMENT" Collateral mortgage on the right of perpetual usufruct and developed real property in Lubzina to the amount of PLN 32,000 thousand, assignment of rights from the insurance policy for the abovementioned real property, registered pledge on fixed assets for the amount of PLN 11,394 thousand together with the assignment of rights from the insurance policy of these assets, assignment of claims worth PLN 4,000 thousand, statement on voluntary submission to enforcement proceedings 19/23

In H1, 2015, the Company concluded the following addenda and loan agreements: on 16 January 2015, addendum to the MultiPurpose Loan Facility Agreement of 22 January 2007 concluded with PKO BP S.A. The addendum extends the term of use of the loan in the amount of PLN 20 million to 17 January 2016; on 20 February 2015, addendum to the MultiCurrency Loan Facility Agreement concluded with Bank Handlowy w Warszawie SA. The addendum extends the term of use of the loan in the amount of PLN 30 million to 17 February 2017, on 23 January 2015 addenda to the loan agreement with DNB Bank Polska S.A., allowing for the use of the loan in the amount of up to PLN 9 million and up to USD 4 million to 28 January 2016, on 30 April 2015 addenda to the loan agreement with DNB Bank Polska S.A., changing the currency of the loan from USD into PLN and allowing to use the loan in the amount of up to PLN 24 million to 28 January 2016, addendum to the agreement with Podkarpacki Bank Spółdzielczy, extending the loan in the amount of PLN 0.5 million to 25 March 2016, addendum of 30 June 2015 to the MultiProduct Agreement with ING Bank Śląski S.A. of 27 April 2009, allowing for the use of the loan in PLN and USD in the total amount of PLN 20 million, to be repaid by 29 June 2016. 20. Equity securities In the 6month period ended on 30 June 2015 and in the 6month period ended on 30 June 2014, the Company did not issue or redeem equity securities. 21. Accruals As of 30 June 2015, the Company created provisions for expenditures to be incurred in the following reporting periods, according to the following summary. ACCRUALS as of 30 June 2015 (not audited) as of 31 December 2014 1. Negative goodwill 2. Other accruals 4,435 342 2.1 Longterm 2.2 Shortterm 4,435 342 Audit 25 110 Bonus for the Management Board and managerial staff 907 150 Costs of transportation 491 Other 46 Marketing services 2,865 Deferred income 101 82 Total accruals 4,435 342 22. Lease receivables As at 30 June 2015, FFiL Śnieżka S.A. holds finance lease receivables in the amount of PLN 2,049 thousand (including shortterm part in the amount of PLN 856 thousand and longterm part in the amount of PLN 1,193 thousand). The Company let machines for the colouring system on a finance lease. The term of the said agreements is 5 years. 20/23

23. Longterm receivables Longterm receivables amounting to PLN 2,119 thousand include: receivables from the sales of interests in Farbud in the amount of PLN 1,395 thousand. According to the repayment schedule included in the sale agreement, longterm receivables amount to PLN 926 thousand and the final instalment becomes due on 31 December 2016. longterm receivables under finance lease in the amount of PLN 1,193 thousand. 24. Discontinued operations In H1 of 2015 and during 2014, the Company did not discontinue any operations. 25. Financial instruments In the reporting period ended on 30 June 2015, there were no material changes in the value and type of financial instruments compared to the annual statements. 26. Objectives and principles of financial risk management In H1, 2015, no important changes occurred in the method of managing financial risk. 27. Equity management In H1, 2015, no important changes occurred in equity management objectives, principles and procedures. 28. Contingent liabilities and contingent assets 28.1. Court cases There are no proceedings pending whose value accounts for at least 10% of the Issuer s equity. 28.2. Other contingent liabilities As of 30 June 2015, the Company held no guarantees or sureties granted to other entities. As of 31 December 2014, the Company held no guarantees or sureties granted to other entities as well. All guaranties and sureties granted in the previous years have expired. 29. Investment liabilities As of 30 June 2015, the Company holds investment liabilities in connection with the purchase of PP&E in the amount of PLN 916 thousand (as of 31 December 2014: PLN 2,121 thousand). These amounts will be earmarked mainly for liabilities related to construction works and for the purchase of new machinery and equipment. 21/23

30. Transactions with related entities The following table presents total amounts of transactions with related entities during the sixmonth periods ended on 30 June 2015 and 2014: related entity sales to related entities purchases from related receivables from entities related entities not audited liabilities towards related entities Entity with significant impact on the Company: 2015 11,192 361 1,611 77 ŚnieżkaUkraina Sp. z o.o. 2014 14,266 138 4,457 138 2015 2,070 3,015 Śnieżka BelPol Wspólna Sp. z o.o. 2014 2,443 3,003 2015 19 8,588 5 1,980 TM Investment Sp. z o.o. 2014 13 8,259 1,859 2015 23 4 Sniezka Easttrade Sp. z o.o. 2014 70 15 Associates: 2015 119 12,325 8 8,680 Plastbud Sp. z o.o. 2014 359 12,092 38 7,038 31. Shares, stock and other longterm assets As of 30 June 2015, FFiL Śnieżka S.A. holds interests, shares and other longterm assets in the amount of PLN 18,888 thousand. A summary of interests in related parties in the amount of PLN 18,888 thousand is presented in the table below. As of 31 December 2014, the amount of PLN 450 thousand in other longterm assets is the balance of debt under a longterm borrowing granted to Śnieżka BelPol Wspólna Sp. z o.o. in the amount of PLN 1,790 thousand, to be repaid by 30 June 2016. Company name, legal form and location of the management office Carrying value of interests as of 30 June 2015 (not audited) Carrying value of interests as of 31 December 2014 SUBSIDIARIES Śnieżka Ukraina Sp. z o. o. 16,769 16,769 ŚnieżkaBELPOL Wspólna Sp. z o.o. 2,093 2,093 TM Investment Sp. z o.o. 5 5 Śnieżka East Trade Moscow 21 21 Total interests held in subsidiaries 18,888 18,888 ASSOCIATES Plastbud Sp. z o.o. 48 48 Total interests held in associates 48 48 32. Causes of differences between changes resulting from the statement of financial position and changes resulting from the cash flow statement as well as additional information about the cash flow statement Causes of differences between changes resulting from the statement of financial position and changes resulting from the cash flow statement are presented in the table below. 22/23

6month period ended on 30 June 2015 (not audited) 6month period ended on 30 June 2014 (not audited) Balance change of trade and other receivables 79,605 71,211 Change in receivables in the cash flow account (79,364) (70,263) difference 241 948 Income tax Lease receivables (580) Dividends and interest (201) (360) Foreign exchange differences from the sales of shares Receivables from the sales of shares (37) (8) Other (3) Total difference Balance sheet change in liabilities 91,158 81,490 Change in liabilities in the cash flow account 53,825 51,769 difference 37,333 29,721 Lease 107 153 Liabilities on account of unpaid interests 546 Investment liabilities 1,205 757 Income tax liability 52 Liabilities on account of unpaid dividends (38,821) (31,307) Other 124 130 Total difference Balance sheet change in long and shortterm provisions 900 1,468 Change in provisions in the cash flow account 1,158 1,214 difference (258) 254 Employee benefit provisions other comprehensive income 258 (252) Other (2) Total difference 33. Events after the balance sheet date From 30 June 2015 to 26 August 2015 (date of approval of these interim condensed financial statements for publication), the Ukrainian hryvnia was subject to further 10% devaluation in relation to main foreign currencies. These and future events in Ukraine may negatively affect the financial result and situation of FFiL Śnieżka and its Ukrainian subsidiary. In the opinion of the Management Board, this issue does not result in impairment of the value of investments in the subsidiary. Due to the current situation, the Management Board of the Company analyses the Ukrainian market, sales volume and demand in individual regions of the country on an ongoing basis. Moreover, additional follow up procedures have been introduced and the volume of production and the level of employment have been adapted to the current needs. The Company monitors the situation on an ongoing basis and undertakes activities reducing the risk of losing recipients. 23/23