LIBET S.A. Financial statements for the period of 12 months ended on 31 December 2014

Transcription

1 Financial statements A. Introduction B. Balance sheet C. Profit and loss statement D. Statement on changes in equity E. Cash flow statement F. Additional information and clarifications 1

2 A. INTRODUCTION TO THE FINANCIAL STATEMENTS 1.1. General Information The of Libet S.A. comprise the period of 12 months ended on 31 December 2014 and include the comparative data for the period of 12 months ended on 31 December 2013 and as at 31 December Libet S.A. ("Joint Stock Company") was established by the Notarial Deed dated The Company is entered into the National Court Register kept by the District Court for Wrocław-Fabryczna, 6th Commercial and Registry Division in Wrocław, under the KRS number of The Company's seat is located in Wrocław, at 5, Powstańców Śląskich street. The term of the Company is perpetual. The basic subject of Libet S.A.'s activities is production of concrete products. The Company is listed on the Warsaw Stock Exchange on the main market in continuous trading Basis of preparation of the These were prepared in accordance with the following regulations: - Act of 29 September on accounting (consolidated text Journal of Laws item 330 of further on "AoA") - Regulation of the Minister of Finance of 19 February 2009 on current and periodic information published by issuers of securities (Journal of Laws No 33, item 259) ("regulation on current and periodic information", as amended). - Regulation of the Minister of Finance of 18 October 2005 on the scope of information published in financial statements and consolidated, required in the issue prospectus for issuers having their seat in the Republic of Poland which are subject to the Polish accounting principles (Journal of Laws No 209, item 1743). - Regulation of the Minister of Finance of 12 December 2001 regarding detailed rules of recognition, appraisal methods, scope of disclosures and methods of presenting financial instruments ("regulation on financial instruments"). This are presented in Polish zloty and grosz, unless stated otherwise. The were prepared with an assumption of continuing business operations by the Company in the foreseeable future. There were no grounds for discontinuation of operations. Libet S.A. is the parent company of Libet Group and prepares consolidated in accordance with the International Financial Reporting Standards. They are kept in the seat of the Company and are subject to publication on the website The Company is not composed of internal entities which prepare their balance sheets individually. During the reporting period for which these statements were prepared, the Company did not merge with any other business units. 2

3 1.3. Comparability of financial data The for the current and previous financial year were prepared applying the same accounting principles (policy). The method of data presentation was changed. Listing and clarification of differences resulting from adjustments following from the changed method of data presentation are to be found in part F of Additional Explanatory Notes (note 36) Differences in the value of published data and significant differences relating to the adopted principles (policies) of accounting between the prepared in accordance with the Polish accounting principles and the which would be prepared according to IAS. Pursuant to par. 7 par. 1 of the Regulation of the Minister of Finance dated 18 October 2005 regarding the scope of information presented in and consolidated, required in the issue prospectus for issuers seated on the territory of the Republic of Poland, to which the Polish accounting principles apply, the Company is obliged to indicate and explain differences in the value of disclosed data, relating to at least the equity (net assets) and net financial result and significant differences regarding adopted principles (policies) of accounting, between the financial statements and comparative data, prepared in accordance with the Polish Accounting Principles (PAP) and financial statements and comparative data which would be prepared pursuant to the International Financial Reporting Standards ("IFRS"). The Company is the parent company of the Group which is obliged to prepare consolidated according to IFRS adopted by the EU. The Group to which the Company is the parent. Due to the changes introduced to the International Financial Reporting Standards, principles of IFRS accounting adopted and applied by the Board on preparation of this note may differ from the principles which will be used in the first IFRS financial statement which may be prepared by the Company in the future. As a result of the conducted analysis of the prepared according to PAP and the statements prepared according to IFRS for the period from 01 January 2014 to 31 December 2014 and for the comparative period, the Company's Board stated that the differences are immaterial on non-consolidated and consolidated basis, therefore the Company resigned from their presentation. On the preparation of these the Board made assumptions as regards the selection of standards and interpretation, which would probably be applied on the preparation of the first according to IFRS. Additionally, the presentation of some items of the according to the Polish accounting principles and IFRS may differ. The differences in the presentation will have no impact on the equity and net result of the Company. The Company could, among others, for the needs of IFRS, present the profit and loss statement differently. Pursuant to the accounting policy, in the balance sheet prepared according to PAP, the balance of the Company Social Benefits Fund (CSBF) and CSBF assets were presented separately, and according to IFRS assets and liabilities within CSBF are excluded from the balance sheet Selected financial data converted into EUR Selected financial data from the and comparative data converted into EUR were included in the annual report SA-R

4 1.6. Applied principles of accounting and adopted methods of assets and liabilities valuation, measuring the financial result and method of preparation of within the scope in which the act leaves a choice to the entity Intangible assets Intangible assets are recognised if it is likely that future economic benefits will flow to the Company which may be directly related to assets. The initial recognition of intangible assets occurs at the acquisition prices or cost of generation. After the initial recognition, intangible assets are valued at acquisition prices or cost of generation less accumulated amortisation and impairment write-offs. Intangible assets are amortised using the straight-line method in the period corresponding to the estimated period of their useful economic right. Commencement of the amortisation occurs not earlier than after accepting the intangible assets for use Tangible fixed assets Tangible fixed assets are valued at acquisition prices, cost of generation or revalued amount, less depreciation or accumulated amortisation write-offs or impairment write-offs. Costs borne after tangible fixed assets are first used, such as costs of repairs, overhauls, exploitation charges, affect the financial result of the reporting period in which they were incurred. The initial value of tangible fixed assets, being the acquisition price or cost of tangible fixed assets generation, is subject to an increase with the expenditures incurred on their improvement, such as reconstruction, extension, modernisation or restructuring and resulting in the fact that the usable value of such assets after the improvement completion exceeds the usable value on the first use of the assets, valued with the period of use, generating capacity, quality of products obtained using the improved tangible fixed assets costs of exploitation and other measures. Tangible fixed assets are depreciated using the straight-line method in the period corresponding to the estimated period of their useful economic right. The depreciation commences not earlier than after the tangible fixed assets are first used. Pursuant to Article 32 par. 3 of the Act on Accounting, verification is performed at the end of a year of the correctness of applied rates and period of tangible fixed assets depreciation. As a result of such a verification it is verified if the periods and depreciation rates are determined correctly, considering the requirements of article 32 par. 2 of the Act on Accounting, i.e. if they correspond to the useful economic life of particular tangible fixed assets duly reflecting the actual mode of drawing economic benefits from given tangible fixed assets. Adopted periods of useful economic lives of fixed assets: - group 1 to 2-2.5% to 4.5% - group 3 to 6-2.5% to 20 % - group 4-30 % computer sets - group 7-10% to 20% - group 8-5% to 20% Tangible fixed assets used based on lease, hire, leasing or other similar nature agreements, recognised as the entity's assets, and are depreciated during the term of the agreements or during the useful economic life of the assets - depending on which of them is shorter. If any causes occur which result in an impairment of tangible fixed assets relevant write-downs decrease the book value of fixed assets. 4

5 Write-downs resulting from the impairment are charged to the other operating expenses. LIBET S.A Assets under construction Assets under construction are valued in the amount of total expenditures in direct relation to their acquisition or generation, including financial costs, decreased with impairment write-downs. The assets under construction comprise also investment materials. Assets under construction are not depreciated until the end of their construction and commissioning. Value of assets under construction is decreased with write-downs if any circumstances occur which indicate their impairment. Advances for assets under construction were recognised at the nominal value Investments The investments comprise the assets purchased for economic benefits resulting from the increased value of these assets, obtaining revenue from them in the form of interest, dividend or other benefits. Shares in other entities and other investments included into tangible fixed assets are valued in the balance-sheet at acquisition prices Inventories Materials and goods as at the balance sheet date were valued at acquisition prices. Finished products were valued at the actual cost of their generation, including achievable net selling prices, applying the method of valuation at fixed generation costs adjusted with fixed cost variances. Inventory consumption is measured according to the following rule: FIFO Advances for deliveries are recognised in the amounts of payment due, with prudence applied Current and non-current receivables Receivables are recognised at the amount of payment due decreased with write-downs. Value of receivables is updated taking into account the level of likelihood of their being repaid applying a write-down. The receivables write-downs are taken, respectively, to the other operating expenses and financial costs, depending on the type of receivables to which the write-down related. Redeemed receivables, obsolete or unrecoverable, decrease the impairment write-downs applied earlier. Redeemed receivables, obsolete or unrecoverable, which were not subject to impairment write-downs or write-downs were performed not in the full amount, are taken, respectively, to the other operating costs or financial costs Cash and cash equivalents Cash and cash equivalents in bank and at hand are valued at their nominal value. Cash and cash equivalents denominated in foreign currencies are valued as at the balance sheet date according to the average exchange rate published by the National Bank of Poland for the given date. 5

6 1.6.8 Prepayments and accruals The Company preforms prepayments if they relate to future reporting periods. Prepayments include e.g. any costs which were prepaid, e.g. subscriptions, insurance for a given period Assets impairment The Company assess if any objective evidence exists, as at each balance sheet date, indicating any impairment of assets or group of assets. If such evidence exists, the Company determines the estimated recoverable value of the assets and makes an impairment write-down in the amount equal to the difference between the recoverable value and the book value. A loss resulting from impairment is taken to the profit and loss statement for the current period. If the assets revaluation has been already performed whose results were applied to the revaluation capital, the the loss up to the amount of the revaluation capital decreases the capital and then is taken to the profit ad loss statement for the current period. In 2014, there were no grounds to make any asset impairment write-downs Transactions in foreign currencies Economic operations denominated in foreign currencies are recognised in books of account as at the date of the transaction, at the following rate, respectively: - Purchase or sell rates of foreign currencies applied by the bank whose services are used by the Company - in the case of foreign currency sales or purchases and liability or payable transaction operations, - Average rate fixed for a given foreign currency by the National Bank of Poland as at the date, unless the customs notification or other document biding for the entity a different rate was set - for all the other transactions. As at the balance sheet date the assets and liabilities denominated in foreign currencies were valued at average exchange rate for a given foreign currency announced by the National Bank of Poland for a given day. Exchange rate differences, relating to assets and liabilities other than long-term investments expressed in foreign currencies, originating as at the valuation date and on the payment of receivables and payables in foreign currencies are included respectively into financial revenue or expenses. In justified cases the exchange rate differences are recognised as acquisition price or cost of generation of fixed assets, assets under construction or intangible assets Capitals The share capital is recognised at the value specified in the Company's Statute and as entered into the court register. The Company's reserve capital is established from: - from share premiums, remaining after the coverage of costs related to the issue, - profit distribution, - transfer from the revaluation capital, results of the prior valuation of net fixed assets, performed compliant with the separate regulations, which were liquidated or sold during the reporting period. - additional payments from shareholders. The reserve capital allocation is specified in the Company's Statute. Asset revaluation reserve - is used to register the valuation effects of derivative instruments which satisfy the collateral criteria. The other reserve capital is established and used based on the Company's statute for specific registered purposes. 6

7 A profit or loss from previous years reflects the retained result at the disposal of the General Shareholders Meeting, and any results of adjustments to the amended principles of accounting and fundamental errors relating to previous years, but disclosed in this financial year Provisions Provisions are liabilities whose settlement dates or amounts are not certain. They are established for settled or likely future liabilities and are charged to other operating expenses, financial expenses, extraordinary losses, depending on the situation to which future liabilities are related. Provisions for pension benefits and similar benefits - anniversary awards, gratuities, etc. are are valued using the actuarial methods Bank credit and loans and financial liabilities held for trading At initial recognition, bank credits and loans are recognised at the cost constituting the value of received cash and including the costs of loan/credit (transaction costs). Then, all the bank loans and credits, except for liabilities held for trading, are valued at adjusted acquisition price (amortised cost), applying the effective percentage rate. Financial liabilities, excluding hedged items, are valued not later than at the end of the reporting period in the amount of adjusted acquisition price. Financial liabilities held for trading are valued at their fair value. Profit or loss from revaluation to the fair value are recognised in the profit and loss statement of the current period Liabilities Liabilities are deemed to be the obligation, resulting from past events, to perform provisions of a credibly specific value, which will result in the release of the present or future assets of the Company. Liabilities are recognised in the amounts due as at the balance sheet date Contingent liabilities - off balance sheet Contingent liabilities are deemed by the Company to be potential future obligation to perform some provisions whose occurrence is dependant on the existence of specific events Deferred income The Company's deferred income includes in particular: The equivalence of received or due funds from contractors, documented with VAT invoices, for services which will be performed in next reporting periods, Negative goodwill A negative goodwill occurred as a result of the acquisition by Cydia Sp. z o.o. of Libet Group on 29 March 2010 from the previous owner, Termac International Holdings BV, and as a result of acquiring a production plant in Toruń in October Differed income tax Deferred income tax assets Deferred income tax assets are set in relation to temporary differences between the book value of assets and liabilities and their tax values and tax loss subject to deduction. 7

8 Deferred income tax assets are set in the amount foreseen in the future for income tax deduction, and in relation to negative temporary differences which will result in reduction of the income tax base and a deductible loss in the future, with prudence applied. Deferred income tax provision Deferred income tax provision is established in relation to positive temporary differences between the book and tax values of assets and liabilities. Deferred income tax provision is established in the amount of income tax value, due in the future, in relation to positive transitory differences which will result in the future in the increase of the income tax base. When setting the value of deferred income tax assets and liabilities what is taken into account is rates of income tax in force in the year when the tax obligation arises Financial instruments Recognition and valuation of financial instruments All the investments being financial instruments on the date of their acquisition are classified under one of four categories: loans and receivables held for trading, available for sale or held to maturity. Financial assets held for trading the Company classifies as financial assets which were purchased or arose in order to gain a benefit as a result of current (within the period of 3 months) price fluctuations and financial assets, which notwithstanding the reason for which they were purchased, constitute a group of assets which has been recently used for the realisation of the benefits as a result of price fluctuations. Derivative instruments being assets are always recognised as held for sale, except for the situation, when they are a hedging instrument. Financial assets held to maturity the Company classifies as financial assets of specific or determinable payments or with a fixed date of payment, which it intends to and is able to hold to maturity, excluding granted loans and receivables. Any loans and receivables falling under the definition of financial instruments in the light of Article 3 par. 1 (23) of the Act, arising as a result of releasing, directly to the other party of the agreement, financial funds, goods or services, which have not been held by the Company for sale over a short period of time, are qualified under the category of granted loans and receivables. To financial assets available for sale the Company includes any financial assets which are not: granted loans or receivables, financial assets kept to maturity and financial assets classified as held for trading. The assets available for sale include in particular shares in entities not being subordinate entities, which the Company classified as not held for sale over a short period of time. Financial liabilities are classified under one of two categories: derivative instruments, whose fair value is lower than zero and the obligation to deliver borrowed financial instruments in the case of short sale are included in financial liabilities classified as held for sale, any other financial liabilities are classified under the other financial liabilities. As at the date of the contract execution the financial assets are valued at acquisition price, i.e. at the fair value of incurred expenditures or other transferred assets, and financial liabilities at the fair value of the obtained amount or value of obtained assets. 8

9 According to the depreciated cost method including the effective percentage rate the Company values assets held to maturity, granted loans and receivables and other financial liabilities, which were not classified by the Company as held for trading. As for receivables and payables with a short term of maturity (commercial), for which the discounting effect is not significant, the Company values them at nominal values. For current receivables impairment is taken into account, which means that the value of receivables is updated taking into account the level of probability of their being paid through write-downs. According to the fair value the Company values financial assets and liabilities classified as held for trading and financial assets available for sale. Changes in the fair value of financial instruments held for trading, not being part of hedging relations are recognised as financial revenues or expenses in the profit and loss statement when they occurred. In the case of financial assets available for sale, changes in the fair value of these instruments are recognised by the Company in the profit and loss statement as financial revenues (expenses) or are recognised in a separate item of the equity, until the asset is derecognised as a result of a sale, expiry of asset rights, realisation, etc. or recognition of the impairment, in which moment the accumulated loss/profit previously recognised in the capital from revaluation is declared in the profit and loss account of a given period. Financial assets are derecognised only when the Company loses control over them as a result of a sale, expiry or asset realisation. Financial liability is derecognised only when the liability expires as a result of its performance, expiry or cancellation Recognition of revenue Revenue is recognised in such an amount at which it is likely that the Company will obtain economic benefits which may be credibly valued Sale of goods and products Revenue is recognised when a significant risk and benefits resulting from the title to goods or products were transferred to the buyer. Revenue includes amounts due or generated from sales, decreased with tax from goods and services (VAT) Interest Interest income is recognised when calculated if their reception is not doubtful Dividends Payable dividends are recognised as financial revenue as at the date of the Shareholders Meeting, of a company in which the entity invested, adopts a resolution on profit distribution, unless the resolution specifies another dividend record date Subsidies and grants Subsidies and grants are recognised at fair value when there is a sufficient certainty that the subsidy will be received and all the conditions will be satisfied relating to obtaining such a subsidy. If a subsidy or grant relates to a cost item then it is deferred in the balance sheet and systematically included in the item of revenue in a way guaranteeing commensuracy with costs which the subsidy is to compensate. 9

10 If a subsidy or grant is to finance the acquisition or generation of tangible fixed assets then it is deferred in the balance sheet and recognised as revenue for the period of fixed asset depreciation Cost recognition The Company recognises costs in the amount of probable decreases of economic benefits in the reporting period if their credible value may be set. As part of records kept the Company applies both the expenditure calculated by type and by function Measurement of financial result The Company's financial result in the financial period includes all the revenue which was generated or attributable and expenditures to pay relating to such revenue, in accordance with the principles presented above, the other operating revenue and costs, result on financial operations and extraordinary events and taxation Social services fund assets and Company Social Benefits Fund related liabilities The Act of 4 March 1994 (as amended) on the Company Social Benefits Fund provides that the Company Social Benefits Fund is established by employers employing at least 20 employees counted as full time equivalents. The Company establishes such a fund and performs periodic write-downs in a minimum required amount. The fund's revenue is additionally revenue from sales, lease and liquidation of tangible fixed assets for social activities, in the part not allocated to the maintenance or reinstatement of the social services fund assets. The fund's objective is the subsidy for the maintenance of the social services fund assets of the Company and financing the social activities. The Fund's balance is Fund's accumulated revenue decreased with non-refundable expenditures of the Fund. The Company presents a separate balance and assets of the Fund in the balance sheet. The social services fund assets are not controlled by the Company. The Company has a limited possibility of disposing of the Fund's cash or its other assets and may not use them in order to generate income. The profit and loss account is prepared in the comparative version Cash flow statement Cash flow statement is prepared with the indirect method Costs of external funding Costs of external funding relating to the construction, adaptation, assembly or improvement of tangible fixed assets or intangible assets, for the term of construction, adaptation, assembly or improvement are recognised in the value of these assets, if the liabilities were drawn for that purpose. Other costs of external financing are recognised in the profit and loss statement. 10

11 No B. BALANCE SHEET - ASSETS Title Note no State as at State as at A FIXED ASSETS 238,995, ,285, I Intangible assets 1 41,128, ,655, R&D expenses Goodwill Other intangible assets 41,128, ,655, Advances for intangible assets II Tangible fixed assets 175,395, ,452, Tangible fixed assets in use 2 172,637, ,837, a lands (including the right of perpetual usufruct) 37,972, ,644, b buildings and constructions 62,877, ,900, c machinery and equipment 52,117, ,016, d vehicles 2,349, ,920, e other fixed assets 17,320, ,355, Assets under construction 3 2,758, ,648, Advances on assets under construction , III Non-current receivables From related entities From other entities IV Long-term investments 5 19,702, ,702, Real estate Intangible assets Other non-current financial assets 19,702, ,702, a in related entities 19,702, ,702, shares 19,702, ,702, other securities loans granted other non-current financial liabilities b in other entities shares other securities loans granted other non-current financial liabilities Other long-term investments V Non-current prepayments 2,769, ,475, Deferred tax assets , , Other prepayments 10 2,150, ,628, B CURRENT ASSETS 128,227, ,702, I Inventories 8 69,098, ,466, Materials ,88 5,299, Semi-finished goods and work in progress ,50 25, Finished products ,95 64,656, Goods for resale ,93 9,659, Prepaid stock , II Current receivables 9 53,201, ,301, Receivables from related entities 40, , a from trade, maturing: 40, , up to 12 months 40, , over 12 months

12 b other Receivables from other entities 53,161, ,409, a from trade, maturing: 48,724, ,579, up to 12 months 48,724, ,579, over 12 months b taxes, subsidies, custom duties, social and health insurance, and other benefits 1,621, ,014, c other 2,814, ,815, d claimed at court III Short-term investments 3,551, ,324, Current financial assets 3,551, ,324, a in related units 6 2,830, , shares other securities loans granted 2,830, , other current financial assets b in other units shares other securities loans granted other current financial assets c cash and cash equivalents 721, ,225, cash in hand and at bank 721, ,225, other cash other cash equivalents Other short-term investments IV Current prepayments 10 2,375, ,609, TOTAL ASSETS 367,222, ,987,

13 BALANCE SHEET - LIABILITIES No Title LIBET S.A. Note no State as at State as at A EQUITY 95,816, ,693, I Share capital , , II Called-up share capital (negative value) III Own shares (negative value) IV Supplementary capital 83,079, ,316, V Revaluation reserve VI Other reserve capitals VII Profit (loss) from previous years VIII Net profit (loss) 12 12,237, ,876, IX Write-off on net profit during the financial year (negative value) B LIABILITIES AND PROVISIONS FOR LIABILITIES 271,405, ,294, I Provision for liabilities 11,309, ,750, Deferred income tax provision 24 10,655, ,016, Provisions for pension and similar benefits , , long-term 128, , short-term 158, , Other provisions , , long-term 367, , short-term II Non-current liabilities 14 69,900, ,883, To related entities To other entities 69,900, ,883, a loans and borrowings 69,900, ,762, b from issue of debt securities c other financial liabilities d other ,121, III Current liabilities 89,032, ,017, To related entities 8,104, ,953, a trade liabilities, maturing: 14 2,782, ,953, up to 12 months 2,782, ,953, over 12 months b other 5,321, To other entities 80,436, ,690, a loans and borrowings 14 25,738, ,245, b from issue of debt securities c other financial liabilities d trade liabilities, maturing: 14 50,674, ,084, up to 12 months 50,674, ,084, over 12 months e prepaid stock f. bill-of-exchange liabilities g. tax, customs, insurance and other liabilities 2,979, ,176, h. payroll liabilities i. other 1,043, ,183, Special funds 492, , IV Accruals 101,163, ,642, Negative goodwill 100,795, ,431, Other accruals , , long-term 167, , short-term 200, TOTAL LIABILITIES 367,222, ,987,

14 C. PROFIT AND LOSS STATEMENT No Title Note Performance for no A Net revenue from sales and equivalent, including revenue: ,484, ,148, from related entities 8,747, ,126, I Net revenue from sales of products ,61 244,794, II Change in the balance of products (increase - positive value, decrease - negative value) ,29 15,310, III Manufacturing cost of products for internal purposes ,42 893, IV Net revenue from sales of goods and materials ,76 19,150, B Costs of operations 233,324, ,730, I Amortisation/depreciation ,01 22,727, II Consumption of materials and energy ,64 136,649, III External services ,13 52,263, IV Taxes and charges, including: ,42 3,169, excise duty V Salaries ,06 25,052, VI Social security and other benefits ,98 5,760, VII Other costs by type ,44 7,776, VIII Value of products and materials sold ,53 18,331, C Profit (loss) on sales (A-B) 12,160, ,418, D Other operating revenue 18 11,176, ,800, I Gain on disposal of non-financial fixed assets II Subsidies III Other operating revenue 11,176, ,800, E Other operating expenses 19 1,710, ,032, I Loss on disposal of non-financial fixed assets 174, , II Revaluation of non-financial assets ,055, III Other operating expenses 1,535, ,853, F Profit (loss) on operating activities (C+D-E) 21,625, ,186, G Financial revenue 571, ,682, I Dividends and shares in profits, including: ,390, from related entities II Interest, including: , , from related entities 265, , III Profit on disposal of investment IV Revaluation of investments V Other H Financial expenses 7,558, ,285, I Interest, including: 21 6,989, ,561, for related entities II Loss on disposal of investment III Revaluation of investments IV Other , ,723, I Profit (loss) from business activities (F+G-H) 14,638, ,583, J Result on extraordinary events (J.I. -J.II.) I Extraordinary gains II Extraordinary losses K Profit (loss) (I+/-J) before tax 14,638, ,583, L 23, Income tax 24 2,400, ,707, M Other statutory reductions in profit (increases in loss) N Net profit (loss) (K-L-M) 12,237, ,876,

15 D. STATEMENT ON CHANGES IN EQUITY No Title I. Opening balance of equity 83,579, ,816, adjustments of fundamental errors and changes in accounting principles I.a. Opening balance of equity after adjustments 83,579, ,816, Opening balance of share capital 500, , Changes in share capital a increase (due to) share issue raising share capital b decrease (due to) share redemption Closing balance of share capital 500, , Opening balance of called up share capital Changes in called up share capital a increase (due to) b decrease (due to) Closing balance of called up share capital Opening balance of own shares a increase b decrease Closing balance of own shares Opening balance of supplementary capital 74,814, ,079, Changes in supplementary capital 8,265, ,237, a increase (due to) 8,265, ,237, from profit distribution (statutory) from profit distribution (above the statutory minimum value) 8,265, ,237, raising share capital b decrease (due to) public offering expenses loss coverage Closing balance of supplementary capital 83,079, ,316, Opening balance of revaluation reserve Changes in revaluation reserve a increase (due to) b decrease (due to) Closing balance of revaluation reserve Opening balance of other reserve capitals Changes in other reserve capitals a increase (due to) b decrease (due to) Closing balance of other reserve capitals Opening balance of previous years' profit (loss) 8,265, ,237, Opening balance of previous years' profit 8,265, ,237, adjustments of fundamental errors and changes in accounting principles Opening balance of previous years' profit, after adjustments 8,265, ,237, a increase (due to) distribution of previous years' profit b decrease (due to) 8,265, ,237, allocation to supplementary capital 8,265, ,237, allocation to dividend distribution

16 7.3. Closing balance of previous years' profit Opening balance of previous years' loss (-) adjustments of fundamental errors and changes in accounting principles Opening balance of previous years' loss, after adjustments a increase (due to) previous years' loss brought forward b decrease (due to) Closing balance of previous years' loss Closing balance of previous years' profit (loss) Net result 12,237, ,876, a net profit 12,237, ,876, b net loss (negative value) c write-offs on profit (negative value) II Closing balance of equity 95,816, ,693, III Equity including proposed profit distribution (loss coverage) 95,816, ,693,

17 E. CASH FLOW STATEMENT No Title A Cash flows from operating activities I Net profit (loss) 12,237, ,876, II Total adjustments (1,988,492.15) 1,059, Amortisation/depreciation 20,957, ,727, Gains (losses) from foreign exchange differences Interest and profit sharing (dividend) 5,567, ,573, Profit (loss) from investing activities 158, , Change in provisions (6,219.85) (285,798.19) 6 Change in inventories (24,689,600.06) (11,367,610.91) 7 Change in receivables (6,729,044.89) 2,898, Change in current liabilities, excluding credits and loans 13,410, (1,545,763.90) 9 Change in prepayments and accruals (1,446,498.61) (4,097,142.25) 10 Other adjustments (9,210,792.00) (9,236,549.32) Change in assets 0.00 Change in liabilities 0.00 III Net cash flows from operating activities (I +/- II) 10,249, ,935, B Cash flows from investing activities I Inflows 3,453, ,798, Disposal of intangible and tangible fixed assets 110, , Disposal of investments in real property and in intangible assets From financial assets, including: 3,342, ,249, a) in related entities 3,342, ,249, interest 265, , repayment of granted long-term loans 3,077, ,830, dividend and profit sharing ,390, b) in other entities sale of financial assets dividend and profit sharing repayment of long-term loans interest other inflows from financial assets Other inflows from investment activities II Outflows 8,511, ,607, Purchase of intangible assets and tangible fixed assets 8,511, ,541, Investments in real property and intangible assets For financial assets, including: a) in related entities acquisition of financial assets b) in other entities acquisition of financial assets long-term loans granted Other outflows from investment activities ,065, a) in other entities , prepaid fixed assets , b) in related entities , short-term loans granted , III Net cash flows from investing activities (I-II) (5,058,431.42) (27,808,994.43) C Cash flows from financing activities I Inflows 4,452, ,510,

18 1 Net inflows from issuance of shares and other capital instruments and from capital contributions Loans and borrowings 4,452, ,510, Issuance of debt securities Interest Other financial inflows II Outflows 12,120, ,133, Purchase of own shares Dividend and other payments to shareholders Profit distribution liabilities other than profit distribution payments to shareholders Repayment of loans 6,300, ,397, Costs of debt securities issue from other financial liabilities Payment of liabilities arising from financial leases Interest 5,820, ,735, Other outflows from financial activities 0.00 III Net cash flows from financial activities (I-II) (7,668,206.00) 15,376, D Total net cash flows (A.III. +/- B.III +/- C.III) (2,477,345.86) 503, E Book change in cash, including: (2,477,345.86) 503, change in cash due to exchange rate differences F Cash opening balance 3,198, , G Closing balance of cash (F+/-D), including: 721, ,225, of limited disposability 503, ,

19 F. ADDITIONAL NOTES AND STATEMENTS Note 1 Changes in the balance of intangibles from to No Title R&D expenses Goodwill Licences and patents total including software Other Total Gross value 1 Opening balance ,343, ,343, ,038, ,382, Increases , , , a acquisition , , , b internal transfer , , Decreases , , e internal transfer , , f. other Closing balance ,239, ,239, ,038, ,278, Redemption 5 Opening balance ,294, ,294, ,959, ,253, Increases ,272, ,272, ,097, ,369, a Amortization/depreciation for period ,272, ,272, ,097, ,369, Decreases Closing balance ,566, ,566, ,056, ,623, Opening net value ,049, ,049, ,079, ,128, Closing net value ,673, ,673, ,982, ,655,

20 Note 2 Changes in the balance of fixed assets from to No Title Lands (including the right of perpetual usufruct) Buildings and constructions Machinery and equipment Vehicles Other fixed assets Total Gross value 1 Opening balance 38,178, ,549, ,783, ,235, ,946, ,694, Increases 6,726, ,888, ,847, ,298, ,176, ,937, a recognition from fixed assets under construction 6,726, ,888, ,776, , , ,000, b acquisition of fixed assets ,215, ,215, c internal transfer , ,650, ,721, Decreases ,795, ,164, , ,432, a sales , , , b liquidation ,723, , ,921, c internal transfer , ,650, ,721, Closing balance 44,904, ,437, ,835, ,369, ,651, ,199,

21 No Title Lands (including the right of perpetual usufruct) Buildings and constructions Machinery and equipment Vehicles Other fixed assets Total accumulated depreciation (redemption) 1 Opening balance 205, ,517, ,665, ,886, ,626, ,902, Increases 54, ,878, ,871, , ,674, ,358, b Depreciation for period 54, ,878, ,871, , ,674, ,358, Decreases ,718, , , ,038, b sales , , , c liquidation ,718, ,718, Closing balance 260, ,396, ,818, ,449, ,295, ,221, Opening balance - revaluation , , Increases b establishment of write-offs for period Decreases , , a release of write-offs for period , , Closing balance - revaluation , , Opening net value 37,972, ,877, ,117, ,349, ,320, ,637, Closing net value 44,644, ,900, ,016, ,920, ,355, ,837,

22 Value of lands under perpetual usufruct No Title LIBET S.A. State as at State as at Value of land under perpetual usufruct - Pruszków 4,043, ,681, Value of land under perpetual usufruct - Mietków 1,869, Value of land under perpetual usufruct - Kalisz 1,513, ,513, Value of land under perpetual usufruct - Łódź 7,382, Value of land under perpetual usufruct - Kawęczyn 9,794, ,794, Value of land under perpetual usufruct - Lublin 2,696, ,513, TOTAL 27,299, ,503, Net value of fixed assets depreciated by the entity, used pursuant to lease, rent or leasing agreements No Title State as at financial other leasing State as at financial other leasing 1 Lands (including the right of perpetual usufruct) Buildings and constructions ,117, ,065, Machinery and equipment ,182, ,297, Vehicles , , Other fixed assets ,319, ,379, Value of fixed assets not depreciated by the entity, used pursuant to lease, rent or leasing agreements No Title State as at State as at Fixed assets used under lease, rent or other similar agreements 13,046, ,046, a including under financial leasing 13,046, ,046, Other off-balance sheet fixed assets TOTAL 13,046, ,046, Liabilities to state budget or local government units for obtaining the title to buildings and constructions - not applicable 22

23 Note 3 Changes in the balance of fixed assets under construction from to No Title Value 1 Opening balance 2,758, Increases 38,726, capital expenditures incurred 32,029, Settlement of company acquisition 6,599, foreign exchange valuation 33, other 64, Decreases 37,836, Transfer to fixed assets 36,896, listing abandoned investment activities 270, form derecognition 502, other 168, capital work in progress write-downs Closing balance 3,648, Note 4 Changes in the balance of non-current receivables from to not applicable Changes in the balance of non-current receivables write-downs from to not applicable Note 5 Shares in subsidiaries as at Name and seat of the Entity Value at share acquisition prices Revaluation Book value of shares % share in the entity's share capital % votes in decisionmaking body of the Company Company's net profit/loss for previous financial year Libet 2000 Sp.z o.o. 14,000, ,392, ,392, % 100% 4,766, BaumaBrick Sp.z o.o. 310, , % 100% -311, ,702, Change in the balance of non-current financial assets from to No Title Shares Other securities Loans granted Other non-current financial assets Total 1 Opening balance ,702, ,702, Increases Decreases Closing balance ,702, ,702, Shares in co-subsidiaries as at not applicable Shares in affiliates as at not applicable 23

24 Note 6 Changes in the balance of current financial assets from to No Title Shares Other securities Loans granted Other current financial assets Total 1 Opening balance ,830, ,830, Increases , , a purchase/granting of loan , , c interest due , , Decreases ,830, ,830, b loan repayment ,830, ,830, Closing balance , , including: - in subsidiaries , , in affiliates - in co-subsidiaries - in other entities Specification of granted loan agreements Name of debtor Contractu al amount Value of receivables as at Current part Non-current part Interest rate conditions as at balance sheet date Baumabrick Sp. z o.o. 98, , , WIBOR+margin none TOTAL 98, , , Note 7 Financial instruments assets none. Repaymen t hedging 24