Grupa Zywiec S A : Consolidated Financial report for I quarter 2020

Capital Group Żywiec S.A.

Consolidated quarterly report

Q1 2020

CAPITAL GROUP ŻYWIEC S.A.

Consolidated Quarterly financial statement

TRANSLATION ONLY

As on and for the period ended 31.03.2020

1. Principles of preparing the Consolidated Quarterly Financial Statement of the Capital Group Żywiec
   S.A.

The consolidated interim abbreviated financial statements were prepared according to International Accounting Standards, International Financial Reporting Standards and the Cabinet Decree dated 29th March 2018 on current and periodical information and reports disclosed by joint stock publicly traded companies and conditions of recognizing information as required by the law of a country not being a Member of the European Union (Journal of Laws 2018 item 757).

These consolidated interim abbreviated financial statement should be read along with the consolidated financial statements for the financial year ended 31st December 2019.

The financial data for these consolidated interim abbreviated financial statements have been prepared according to the accounting principles and calculation methods, stated in the last consolidated annual financial statements for 2019.

All the amounts in these consolidated financial statements are given in PLN thousands and in units (number of shares).

II. Organization structure of the Capital Group Żywiec S.A.

As on 31st March 2020 Capital Group Żywiec S.A. ("The Capital Group") consisted of 9 companies (including 4 production companies). The Group's parent company is a joint stock company Grupa Żywiec S.A. The remaining companies are direct subsidiaries of Grupa Żywiec S.A., except for Browar Zamkowy Cieszyn Sp. z o. o. and Browar Braniewo Sp. z o.o. which are subsidiaries of Żywiec Investments Holding Sp. z o. o. Rolno-Spożywczy Rynek Hurtowy "Giełda Elbląska" S.A. and Distribev Orbico Sp. z o. o. are associated companies of Grupa Żywiec S.A. The Group's principal activity is the production and distribution of beer, designated by the Code PKD 2007 - 1105 Z.

On 12th December 2019 based on an incorporation act a company was created under a name of Browar Braniewo Sp. z o.o. which was registered in the National Court Register on 17th February 2020. As at the date of publication of the hereby interim consolidated financial statements for first quarter of 2020 Browar Braniewo did not maintain any operating activities.

1. A brief description of significant achievements and failures taken by issuer during the period to which report is related

On 31st Of January 2020 The Management Board of Grupa Żywiec S.A. informed that Grupa Żywiec S.A. and Browar Namysłów Sp. z o.o. agreed upon and signed-off the Merger Plan which was published on the Issuer's website: www.grupazywiec.pl.

Following article 504 of the Code of Commercial Companies and in relation with article 402(1) of the Code, the Management of Grupa Żywiec S.A. informed the shareholders about their intent to merge with Browar Namysłów Spółka Z o.o. through publication of the first announcement on 14th February 2020 and the second announcement on 20th March 2020 on the Company's website.

2/22

CAPITAL GROUP ŻYWIEC S.A.

Consolidated Quarterly financial statement

TRANSLATION ONLY

As on and for the period ended 31.03.2020

On 2nd April 2020 a General Shareholders Meeting of Grupa Żywiec S.A. took place, on which the Shareholders of the Company made resolutions in the following matters: approval of the financial statements and management report of the Company and the Capital Group for 2019, confirmation of fulfilment of duties by the Supervisory Board members and the Management Board members for the year 2019.

Due to the fact that the Management Board of the Company did not present the proposal of division of profit for the year 2019 The General Shareholders Meeting decided not to make any resolution regarding division of profit for the year 2019 and decided that the resolution shall be made at an appropriate, future date.

On 2nd April 2020 at the General Shareholders Meeting, following article 492 par. 1 point 1) of the Code of Commercial Companies, the merger with a subsidiary entity Browar Namysłów Sp. z o.o. was approved. The merger shall follow the rules listed below:

1. Merger shall be concluded following art. 492 § 1 point 1 of the Code of Commercial Companies in relation with article 516 par. 6 of the Code by transferring of all company assets of Browar Namysłów Sp. z o.o. onto Grupa Żywiec S.A. The merger will be concluded as a take over of a one-man subsidiary by a parent entity.
2. The merger of Grupa Żywiec and Browar Namysłow shall be concluded following resolutions of Extraordinary General Meeting of Shareholders of Browar Namysłów and Ordinary General Shareholders Meeting of Grupa Żywiec, made in line with art. 506 in rela- tion with art. 516 par. 1 and 6 of the Code of Commercial Companies.
3. As Grupa Żywiec remains the only shareholder of Browar Namysłów owning all 31,200 shares in their equity, the merger will be con- cluded based on art. 515 par 1 and 514 par 4 of the Code of Commercial Companies. The merger will be concluded without increas- ing the equity of Grupa Żywiec and Grupa Żywiec will not overtake their own shares in exchange for the shares they have in Browar Namysłów.
4. The day of registration in the National Court Register, proper for the Company taking over, will become the effective day of the mer- ger. The registration implies that the Company being taken over shall be crossed out of the National Court Register, which is done ex officio.
5. Grupa Żywiec, as the company taking over, shall accept all rights and obligations of Browar Namysłów being the Company taken over since the day of the merger, i.e. the date of registration in the National Court Register (universal succession).
6. Based on art 516 § 6 of the Code of Commercial Companies in connection with 516 § 5 of the Code the plan was not audited by an auditing firm.
7. As a result of the merger, Browar Namysłów shall be disbanded without liquidation and crossed out of the National Court Register and all other public registers.

The General Shareholders Meeting approved of the content of the Merger Plan with annexes and announced that the merger of Grupa Żywiec with Browar Namysłów will be concluded without changing the articles of association of Grupa Żywiec S.A.

On 2nd April 2020 the Ordinary General Meeting of Grupa Żywiec S.A. elected to re-appoint Mr. Allan Myers, Mr. Alle Ypma and Mr Krzysztof Loth as Members of the Supervisory Board for another individual three-year term. The General Meeting also decided to appoint Mr. Roelf Duursema for his first three-year term as a Member of the Supervisory Board.

On 2nd April 2020 the term of Mr. David Hazelwood as a Member of Supervisory Board expired.

Due to expiration of mandate of the Member of the Supervisory Board appointed from within the employees, on 2nd April 2020 the General Shareholders Meeting in a form of a resolution approved the rules for electing a new member of the Supervisory Board from within employees of Grupa Żywiec S.A. Elections shall take place by mid-May 2020.

On 14th February 2020 Grupa Żywiec S.A. and Heineken International B.V. with its registered office in Amsterdam, the Netherlands, signed a three-year loan agreement with a limit of up to PLN 100,000 thousand and valid until 31st August 2022. The loan is intended to finance Company's day-to-day business operation. The price of the loan facility is based on the variable WIBOR rate increased by a mar- gin, which was set at the market level. Other provisions do not differ from the standard terms for this type of contracts.

On 20th March 2020 the Company and Bank Pekao S.A. signed an annex to the Overdraft Facility Agreement entered into on 25th May 2005 for PLN 120,000 thousand, extending the overdraft repayment period until 31st March 2021.The facility is intended for financing of current operations of the Company. The price is based on a variable WIBOR rate plus margin. The remaining provisions are similar to those commonly used in these types of agreements.

3/22

CAPITAL GROUP ŻYWIEC S.A.

Consolidated Quarterly financial statement

TRANSLATION ONLY

As on and for the period ended 31.03.2020

IV. Description of selected financial data and events having the significant impact on the level of achieved financial result

Capital Group Żywiec S.A.

Q1 2020

In the first quarter of 2020 the consolidated revenue amounted to PLN 770,100k (Q1 2019: PLN 606,693k). At the same time organic growth of revenue reached 8%.

The Group noted consolidated operating loss of PLN 20,238k.

We noted higher revenues from sales and despite the excise duty increase we maintained revenue per hectolitre of beer at a level similar to the first quarter of 2019. Still, in the first quarter Grupa Zywiec reported an operating loss. This was primarily due to further increased operating costs, including production, logistics and personnel costs, as well as the negative impact of exchange rate differences. Further- more, the first quarter of the year is when the intensive work preparing for the seasonal brand activation occurs and consequently this resulted in higher marketing investment included in higher commercial costs, the returns from this are typically in the following months - said Francois-XavierMahot, president of the Management Board of Grupa Żywiec S.A.

In response to the outbreak of coronavirus in Poland in mid-March 2020, the Board has been monitoring on an ongoing basis developments in the market, and in particular focusing attention on factors which protect the long term potential of its brands and businesses as well as mitigating measures.

The main risk factors from the outbreak include restrictions on access of consumers to stores, restrictions on HoReCa and the ban on the organization of mass events, all of which, if maintained at the current level for a longer duration, may lead to reduced turnover and, as a result, lower Company revenues. Furthermore, potential payment gridlocks in settlements with customers related to the above mentioned restrictions on commercial activity or cessation of HoReCa may lead to reduced cash flow. It is to be mentioned that at the day of the publication of the report the Company did not noted deterioration of payment from clients if compared to the situation before COVID-19 out- break.

Management do not expect the temporary closing of borders to significantly affect the Company's annual results due to the availability of raw materials from domestic sources, and the more limited materiality of exports in its annual financial results.

Today we are facing an unprecedented new business reality, in which we are trying to adapt as best we can. As a response to the COVID-19 outbreak, we took immediate action to limit the potential risk to employee health and safety as well as to ensure business con- tinuity. Appropriate measures around health and safety were implemented immediately in accordance with the guidelines of the Ministry of Health. Appropriate plans ensuring continuity of production and supplies to our customers have also been implemented. We also continue to do as much as we can to support healthcare, our local communities and our business partners who are suffering as a result of the current conditions. - said Francois-XavierMahot - Whilst the safety of our employees and partners remains our top priority, we are also focused on maximizing flexibility to respond to the changing conditions and on activities aimed at mitigating the noticeable impact of this on our business including strictly controlling costs. - Francois-XavierMahot added.

The COVID-19 epidemic has impacted the company's operations, and the impact of this will be more pronounced in the second quarter. However, given unpredictability of this on external factors as well as the duration of this outbreak, it is impossible to reliably quantify the potential negative impact of COVID-19 on our performance over the next few months, including the respective impact on volume, cash flow and profitability. The Company will continue to monitor the current situation and will take all possible and necessary steps to mitigate the negative effects of this. Management will keep investors informed as appropriate.

Parent Company Grupa Żywiec S.A.

Q1 2020

In the first quarter of 2020 the consolidated revenue amounted to PLN 656,856k (Q1 2019: PLN 609,151k) which is an increase of 7,8%. The Company noted operating loss of PLN 20,506k.

V. Information concerning seasonal activity of Grupa Żywiec S.A. in presented period

The brewing industry is seasonal, concerning production and selling. In brewing industry the peak of the season falls within summer months.

4/22

CAPITAL GROUP ŻYWIEC S.A.

Consolidated Quarterly financial statement

TRANSLATION ONLY

As on and for the period ended 31.03.2020

VI. Information about inventory write-downs to net value possible to achieve and reversing those write- downs (in PLN thousand)

The Capital Group Żywiec S.A.
	01.01.2020	01.01.2019
	31.03.2020	31.03.2019
Opening balance	2,206	392
Increase	3,507	1,715
Decrease		(523)
(457)
Release	(1,476)	-
Closing balance	3,780	1,584
The Parent Company Grupa Żywiec S.A.
	01.01.2020	01.01.2019
	31.03.2020	31.03.2019
Opening balance	2,206	392
Increase	3,389	1,663
Decrease		(471)
(457)
Release	(1,358)	-
Closing balance	3,780	1,584

VII. Information about write-downs for impairment of financial assets, tangible fixed assets, intangible assets and other assets and reversing those write-downs (in thousand PLN)

The Capital Group Żywiec S.A.
Movements on the provision for impairment of trade receivables are as follows:	01.01.2020	01.01.2019
31.03.2020	31.03.2019
Opening balance	14,742	14,682
Provision for impairment of receivables	303	206
Receivables written off during the year as uncollectible		-
(18)
Unused amounts release		(1,437)
(88)
Closing balance	14,939	13,451
Movements on the provision for impairment of tangible fixed assets and intangi-	01.01.2020	01.01.2019
ble assets are as follows:
31.03.2020	31.03.2019
Opening balance	22,461	26,176
Provision increase	2,387	3,233
Provision release		(258)
(27)
Closing balance	24,821	29,151
The Parent Company Grupa Żywiec S.A.
Movements on the provision for impairment of trade receivables are as follows:	01.01.2020	01.01.2019
31.03.2020	31.03.2019
Opening balance	13,342	14,458
Provision for impairment of receivables	279	206
Receivables written off during the year as uncollectible	1	-
Unused amounts release	-	(1,437)
Closing balance	13,622	13,227

5/22

	CAPITAL GROUP ŻYWIEC S.A.
Consolidated Quarterly financial statement	TRANSLATION ONLY
As on and for the period ended 31.03.2020

Movements on the provision for impairment of tangible fixed assets and intangi-	01.01.2020	01.01.2019
ble assets are as follows:	31.03.2020	31.03.2019
Opening balance	23,877	26,002
Provision increase	2,387	3,233
Provision release		(233)
(27)
Closing balance	26,237	29,002

VIII. Information about provisions (setting up, increase, decrease and release) (in thousand PLN)

On 31st March 2020 provisions for other liabilities and charges and provisions for retirement benefit obligations and jubilee bonuses structure were as follows:

The Capital Group Żywiec S.A.
Provisions for other liabilities and charges	31 March 2020	31 December 2019
Opening balance	11,913	13,925
Additional provisions	3,503	12,207
Release/adjustments		(913)
(94)
Decrease	(7,374)	(13,306)
Closing balance	7,948	11,913
Long-term provisions for retirement benefit obligation and jubilee bonuses	31 March 2020	31 December 2019
Opening balance	24,768	22,542
Increase (revaluation)	-	2,388
Release (revaluation)	-	(162)
Closing balance	24,768	24,768
Short-term provisions for retirement benefit obligation and jubilee bonuses	31 March 2020	31 December 2019
Opening balance	750	2,508
Increase:	418	629
- estimation update	-	202
- other	418	405
- acquisition of a subsidiary	-	22
Decrease:		(405)
(418)
- payment of retirement bonuses		(405)
(386)
- payment of jubilee bonuses		-
(32)
Release:	-	(1,982)
- estimation update	-	(81)
- other	-	(1,901)
Closing balance	750	750

On 31st March 2020 provisions for other liabilities and charges and provisions for retirement benefit obligations and jubilee bonuses in companies of Capital Group Żywiec S.A. amounted to PLN 33,466 thousand which means a decrease by PLN 3,965. thousand in comparison to the balance as of 31st December 2019.

6/22

	CAPITAL GROUP ŻYWIEC S.A.
Consolidated Quarterly financial statement	TRANSLATION ONLY
As on and for the period ended 31.03.2020

The Parent Company Grupa Żywiec S.A.
Provisions for other liabilities and charges	31 March 2020	31 December 2019
Opening balance	8,900	11,769
Additional provisions	2,714	8,852
Release/adjustments		(566)
(94)
Decrease	(5,731)	(11,155)
Closing balance	5,789	8,900
Long-term provisions for retirement benefit obligation and jubilee bonuses	31 March 2020	31 December 2019
Opening balance	22,414	20,657
Increase (estimation update)	-	1,757
Release (estimation update)	-	-
Closing balance	22,414	22,414
Short-term provisions for retirement benefit obligation and jubilee bonuses	31 March 2020	31 December 2019
Opening balance	628	2,327
Increase:	386	473
- estimation update	-	202
- other	-	271
Decrease:		(271)
(386)
- payment of retirement bonuses		(271)
(386)
Release:	-	(1,901)
- other	-	(1,901)
Closing balance	628	628

On 31st March 2020 provisions for other liabilities and charges and retirement benefit obligations and jubilee bonuses liabilities in Grupa Żywiec S.A. amounted to PLN 28,831 thousand, which means a decrease by PLN 3,111 thousand in comparison to the balance as of 31st December 2019.

Provisions for restructuring in the Capital Group Żywiec S.A. were created in conjunction with the optimization of processes and the structure of employment in the area of production, logistics, sales and support departments - in particular as a continuation of the programs initiated in previous years.

Employment reductions are caused by progressive optimization of work in breweries, continuous outsourcing of services, works simplification of organizational structures and automation of supply chain process, sales organization and technical sale support.

Management Board of Grupa Żywiec S.A. announced the Restracturing Plan for 2020. The restructuring plan for 2020 was announced at the turn of 2019 and 2020.

During 2020 provisions set up for Restructuring Plan 2020 were adjusted with individual redundancy payment and part of them has been already paid.

IX. Information about provisions and deferred tax asset

As at 31st March 2020 Capital Group Żywiec showed a deferred tax liability in the amount of PLN 47,794 thousand, which means a decrease by PLN 1,547 thousand in comparison to the balance as of 31st December 2019.

In the first quarter of 2020 deferred tax asset in Capital Group Żywiec S.A. amounted to PLN 91,584 thousand, which means a increase by PLN 12,858 thousand in comparison to the balance as of 31st December 2019.

As at 31st March 2020 there was no deferred tax asset liability at Grupa Żywiec S.A. and deferred tax asset amounted to PLN 85,972 thousand, which means a increase by PLN 9,692 thousand in comparison to the balance as of 31st December 2019.

7/22

CAPITAL GROUP ŻYWIEC S.A.

Consolidated Quarterly financial statement

TRANSLATION ONLY

As on and for the period ended 31.03.2020

1. Information about significant acquisitions and sale transactions of tangible fixed assets (in thou- sand PLN)

The Capital Group Żywiec S.A.

01.01.202001.01.2019

31.03.202031.03.2019

Acquisition of tangible fixed assets
62,655	68,450
		1,219
Net sale of tangible fixed assets	1,296

The Parent Company Grupa Żywiec S.A.

01.01.202001.01.2019

31.03.202031.03.2019

Acquisition of tangible fixed assets
56,214	65,633
		-
Net sale of tangible fixed assets	97

XI. Information about significant liability due to acquisition of tangible fixed assets (in thousand PLN)

The liability due to the acquisition of tangible fixed assets in Capital Group Żywiec S.A. and Grupa Żywiec S.A. amounted to:

	31 March 2020	31 December 2019
Capital Group Żywiec S.A.		53,475
35,210
Grupa Żywiec S.A.		32,017
32,843

XII. Information about proceedings before a Court, Court of Arbitration or public administration body and about significant settlements due to lawsuits

Grupa Żywiec S.A. and its subsidiaries neither have substantial commitments nor claims, which have been subject to court or administrative proceedings other than the situation described in note XXII of these abbreviated consolidated quarterly financial statements.

XIII. Indication of previous periods errors adjustment

During the reporting period significant errors adjustments concern financial statements from previous periods have not been made. Such errors have not occurred.

XIV. Information about changes of economic situation that have significant influence on fair value of financial assets and liabilities regardless of whether those assets and liabilities are contain by fair value or adjusted purchase price

The change of economic situation did not have a significant influence on fair value of financial assets and liabilities.

XV. Information about unpaid credit or loan or breach the significant provisions of the credit or loan agreement to which any remedial actions have not been taken before the end of reporting period

Grupa Żywiec S.A. and its subsidiaries have bank credits and loans granted by other entities to which debt service is regular.

XVI. Information on the Issuer or its subsidiaries transactions with related parties on terms other than market

In the first quarter 2020 transaction with related parties on terms other than market have not been concluded neither by Issuer nor its sub- sidiaries.

8/22

CAPITAL GROUP ŻYWIEC S.A.

Consolidated Quarterly financial statement

TRANSLATION ONLY

As on and for the period ended 31.03.2020

XVII. Information about the method of fair value establishment for financial instruments that are valued according to this method

The method of determining the fair value of financial instruments used in this quarterly report has not changed and is consistent with the principles used in the annual financial statements for the financial year 2019.

XVIII. Information about change in financial assets classification as a result of changes in purpose or usage of those assets

In the reporting period changes in purpose or usage of financial assets did not occur so no changes in financial assets classification were made.

XIX. Information concerning issuing, repurchase and repayment of debt or equity securities

In the reporting period such activities did not occur.

1. Information concerning paid (or declared) dividend, totally and per one share divided into ordi- nary and preference shares

On 2nd April 2020 the General Shareholders Meeting of Grupa Żywiec S.A. in the resolution no 3/202 decided not to vote on the resolution on division of profit for the year 2019.

Due to the fact that the Management Board of the Company did not present the proposal of division of profit for the year 2019 The General Shareholders Meeting decided not to make any resolution regarding division of profit for the year 2019. The resolution shall be made at an appropriate, future date.

XXI. Subsequent events not accounted for in the consolidated quarterly financial statements for the current period

There were no subsequent events not included in the consolidated quarterly abbreviated financial statements as on 31th March 2020.

XXII. Information concerns changes in contingent assets and liabilities which have appeared from the end of the previous financial year (in thousand PLN)

Current economic activity of the Company results in numerous contingent liabilities resulting from court disputes and public-private claims including Tax Authorities and private entities. In Management Board's and their experts' opinion the risk of outflow of funds resulting from these contingent liabilities is possible, but is not probable and therefore provisions for these events have not been created. Material contingent liabilities and assets are described below.

Contingent Liabilities

On 19th September 2018 Grupa Żywiec S.A. received a protocol from audit of the books ("Protocol") prepared within tax control carried out by the Head of Silesian Office of Tax and Duty in Katowice ("SOTD"). The control in question encompasses verification of accuracy of declared tax base, correctness of calculation and payment of corporate income tax for 2013, about which the Company informed in the annual financial statements of Grupa Żywiec S.A.

From the contents of the Protocol it can be deduced that, according to SOTD, the Company misrepresented the following items in their declaration of corporate income tax for 2013:

• Revenue and costs related to license fees between the Company and Brandhouse Żywiec Sprzedaż i Dystrybucja Sp. z o.o. Sp. k.,
• Tax deductible expenses related to depreciation charge on trademarks.

The Company disagrees with the provisions of the Protocol, because in the opinion of the Management Board the conclusions of SOTD cannot be justified on the basis of applicable law or the previous case-law of administrative courts regarding matters of a similar factual and legal status. In addition, the Company is in possession of individual tax law interpretations issued on behalf of Minister of Finance confirming the legitimacy of the actions taken by the Company.

The Company exercised the right of to give objections and present clarifications to the Protocol. The Company published the information, because the Protocol is an important stage of tax audit, the final result of which may be significant for the value of potential claims reflected in the Company's accounting books.

Due to the above information, the Management Board of Grupa Żywiec S.A. decided on 24th October 2018 to disclose contingent assets and liabilities.

On 7th December 2018 the Company received a decision ("Decision") establishing tax liability regarding corporate income tax for 2013 in the amount of PLN 47,143k.

9/22

CAPITAL GROUP ŻYWIEC S.A.

Consolidated Quarterly financial statement

TRANSLATION ONLY

As on and for the period ended 31.03.2020

The Company does not agree with the Decision and appealed to the Director of Fiscal Administration Office maintaining arguments mentioned before in the objections to the Protocol.

On 27th September 2019 the Company received the result of the control ("Result of control 2011") prepared as part of the tax control carried out in the Company by the Director of the Silesian Tax Office in Katowice ('ŚUCS') . The control covered the scope of the reliability of the tax bases declared and the correctness of calculation and payment of the corporate income tax in 2011, about which the Company had informed in the Annual Standalone Financial Statements of Grupa Żywiec S.A.

From the contents of the Protocol it can be deduced that, according to SOTD, the Company misrepresented the following items in their declaration of corporate income tax for 2011:

• Revenue and costs related to license fees between the Company and Brandhouse Żywiec Sprzedaż i Dystrybucja Sp. z o.o. Sp. k.,
• Tax deductible expenses related to depreciation charge on trademarks.

Based on the calculations presented in the Results of the control, additional tax liability due to the issues found amounted to PLN 58,912 thousand.

The Company consequently disagrees with the provisions of the Results of Control. The Management Board maintains their position that the conclusions of SOTD cannot be justified on the basis of applicable law or the previous case-law of administrative courts regarding matters of a similar factual and legal status. In addition, the Company is in possession of individual tax law interpretations issued on behalf of Minister of Finance confirming the legitimacy of the actions taken by the Company.

Grupa Żywiec S.A. did not exercise the right to adjust the tax return in line with the results of the control and shall question the conclusions reached by the tax control.

On 9th December 2019 the Company received the result of the control ("Result of control 2012") prepared as part of the tax control carried out in the Company by the Director of the Silesian Tax Office in Katowice ('ŚUCS') . The control covered the scope of the reliability of the tax bases declared and the correctness of calculation and payment of the corporate income tax in 2012, about which the Company had informed in the Annual Standalone Financial Statements of Grupa Żywiec S.A.

From the contents of the Protocol it can be deduced that, according to SOTD, the Company misrepresented the following items in their declaration of corporate income tax for 2012:

• Revenue and costs related to license fees between the Company and Brandhouse Żywiec Sprzedaż i Dystrybucja Sp. z o.o. Sp. k.,
• Tax deductible expenses related to depreciation charge on trademarks.

Based on the calculations presented in the Results of the control, additional tax liability due to the issues found amounted to PLN 52,107 thousand.

The Company consequently disagrees with the provisions of the Results of Control. The Management Board maintains their position that the conclusions of SOTD cannot be justified on the basis of applicable law or the previous case-law of administrative courts regarding matters of a similar factual and legal status. In addition, the Company is in possession of individual tax law interpretations issued on behalf of Minister of Finance confirming the legitimacy of the actions taken by the Company.

Grupa Żywiec S.A. did not exercise the right to adjust the tax return in line with the results of the control and shall question the conclusions reached by the tax control.

On 14th February 2020 the Company received a Decision of the Director of Tax Office in Katowice maintaining in power the decision establishing corporate tax liability for 2013 at PLN 47.143 thousand. The liability was settled by the Company on 17th February 2020. At the same time the Company filed a complaint on this decision to the Voivodship Administrative Court.

In the period 2011 - 2016 the Company declared tax deductible costs related to depreciation of trademarks.

Tax Authorities may also question tax deductions made in relation with depreciation of trademarks declared in remaining years. Should this be the case, the Company estimate that the maximum exposure on contingent liabilities would reach PLN 317,000 thousand of base amount and PLN 161,000 thousand of interest. The Company assesses that the outflow of funds is possible, but not probable.

Excise Tax - contingent asset

According to the ruling of the European Tribunal of Justice case C30/17 the High Administrative Court confirmed that sugar/flavoured syrup added to flavoured beer after fermentation should be excluded from excise duty tax base. In Company's opinion this ruling can be applied to all flavoured beers. Based on both rulings the Company filed for return of paid excise duty for the years 2007-2018 in base amount of PLN 163,000 thousand Management Board assess that the inflow of funds in probable.

As at the day of publishing of these quarterly abbreviated consolidated financial statements, the Head of Tax Office has not issued a decision regarding the return of overpayment of excise duty.

Other contingent liabilities

As a result of the agreement from 12th December 2019 between Orbico d.o.o., Żywiec Investment Holding Sp. z o.o. and Grupa Żywiec S.A., Grupa Żywiec give to Orbico d o.o. put option for 80% of shares in Distribev Orbico Sp z o.o. simultaneously Grupa Żywiec is entitled to call option for those shares. Price of both option amounts to PLN 100,000 thousand representing estimated fair value of the shares at contract day. Both options are subject to obtaining Competent Competition Authority Clearance. Both options are expiring in 2020. Company estimates that cash out is possible but not probable.

10/22

CAPITAL GROUP ŻYWIEC S.A.

Consolidated Quarterly financial statement

TRANSLATION ONLY

As on and for the period ended 31.03.2020

Due to fact that period from contract day is short in the opinion of the Company there is no material change of the fair value of those shares at the balance sheet day and also impact of other factors applied in option valuation method in the opinion of the Management Board is not material.

Tax liabilities

Tax authorities are allowed to control accounting books and tax calculations and returns during 5 years from the end of the calendar year in which the tax returns were submitted and may charge the Company additional/extra tax together with interest and fines.

In 2016 control proceedings against Grupa Żywiec S.A. in the scope of declared tax base's integrity and correctness of calculations and payments of Corporate Income Tax for 2013 were commenced.

In 2017 control proceedings against Grupa Żywiec S.A. in the scope of declared tax base's integrity and correctness of calculations and payments of Corporate Income Tax for 2011 and 2012 have been commenced. The control proceedings have not been completed at the day of signature of standalone financial statements. Detailed information about the proceedings has been provided in the Note above.

On 22nd July 2019 tax control was started in Grupa Żywiec S.A. regarding adherence to excise tax regulations in the period 1st January 2019 until 30th June 2019. Until the date of issuance of these abbreviated consolidated quarterly financial statements, control activities have not been finished.

On 24th July 2019 tax control was started in Browar Namysłów Sp. z o.o. regarding adherence to excise tax regulations in the period 1st January 2019 until 30th June 2019. Until the date of issuance of these abbreviated consolidated quarterly financial statements, control activities have not been finished.

On 6th December 2019 tax control was started in Grupa Żywiec S.A. regarding accuracy of declared tax base as well as correctness of calculation and payments of corporate income tax for 2014 and 2015. Until the date of issuance of these abbreviated consolidated quarterly financial statements, control activities have not been finished.

In the reporting period ending on 31st March 2020 Grupa Żywiec S.A. did not submit any material corrections of corporate income tax re- turns.

Contingent liabilities

						31 March 2020	31 December 2019
-	bank guarantees in favor of landlord for securing payments of rental			1,920		1,796
		of buildings (deposits)
-	bank guarantees in favor of the Director of Fiscal Administration Office for
		14,350		14,350
		securing payment of suspended excise duty
-	bank guarantee to secure payment due to organizations of lotteries			104,904		123,373
-	bank guarantee to secure payment for deliveries			-		650
	Total contingent liabilities	121,174	140,169
Contractual commitments
Contractual commitments for the acquisition of property, plant and equipment amounted:
					31 March 2020	31 December 2019
				40,360 PLN thousand		73,541 PLN thousand

XXIII. Indication of the effects of changes in the structure of the enterprise, including mergers ac quisitions or sales of capital group entities, long-term investments restructuring and discontinuance of business activity

On 17th February 2020 the Regional Court in Bielsko-Biała, Department VII for Economic Activity of National Court Register, registered a new subsidiary of Żywiec Investments Holding Sp. z o.o. under a name of Browar Braniewo Sp. z o.o. with the seat in Żywiec. As at 31st March 2020 Browar Braniewo did not maintain any operating activities.

XXIV. Financial forecasts

Grupa Żywiec S.A. has not published any forecasts concerning the financial figures of the Company and the Capital Group.

11/22

CAPITAL GROUP ŻYWIEC S.A.

Consolidated Quarterly financial statement

TRANSLATION ONLY

As on and for the period ended 31.03.2020

XXV. The Shareholders of the Company

The main shareholders holding at least 5% of votes at the General Shareholders' Meeting at the day of handover hereby consolidated financial statement for the first quarter 2020 are:

• Heineken International B.V. with headquarter in Amsterdam, The Netherlands.

According to the information held by the Company on the day of submitting the consolidated interim abbreviated financial statements for the first quarter 2020 Heineken International B.V. has 6,692,421 shares of Grupa Żywiec S.A. and the same number of votes at the General Shareholders' Meeting i.e. 65,16% of the share capital. The number of shares of Grupa Żywiec S.A. has not changed since the publishing of the consolidated financial statements for 2019.

• Harbin B.V. with headquarter in Amsterdam, The Netherlands.

According to the information held by the Company on the day of submitting the consolidated interim abbreviated financial statements for the first quarter 2020 the ownership of the shares of Grupa Żywiec S.A. is 3,409,660 and the same number of votes at the General Shareholders' Meeting i.e. 33,19% of the share capital. The number of shares of Grupa Żywiec S.A. has not changed since the publishing of the consolidated financial statements for 2019.

XXVI. Number of shares owned by the Management and Supervisory Board of Grupa Żywiec S.A.

According to the Company's information, at the day of handover hereby consolidated financial statements for the first quarter of 2020 the following members of the Supervisory Board and the Management Board of Grupa Żywiec S.A. disposed the shares of the Company:

1. Mr Krzysztof Jasek, Member of the Supervisory Board of Grupa Żywiec S.A., owned 12 shares of Grupa Żywiec S.A. The number of shares has not changed since the publishing of the consolidated financial statements for of 2019.
2. Mr Michael McKeown, Member of the Management Board of Grupa Żywiec S.A owned 1,000 shares of Grupa Żywiec S.A. The num- ber of shares has not changed since the publishing of the consolidated financial statements for of 2019.

XXVII. Information concerns granting credit or loans guarantees by issuer or dependent entity

As on 31st March 2020 the following guarantees were issued by Grupa Żywiec S.A. to parties:

Remaining sureties granted by Grupa Żywiec S.A.:
	31 March 2020	31 December 2019
- surety of loan for Browaru Zamkowego Cieszyn Sp. z o.o.	15,600	15,600
- surety of liabilities of subsidiaries/associates	10,829	10,829
- other sureties	10,000	10,000
Other guarantees - total	36,429	36,429

XXVIII. Other information that are relevant to the assessment of the personnel, assets and financial situation, financial results and information that are relevant to assess the possibility of meeting liabilities by the Issuer

In the presented period there were no circumstances that could have significantly threat the personnel, assets and financial situation or financial result or which could have a significant influence on meeting liabilities by the Issuer. However, in Management Board's opinion, in the context of COVID epidemics, new risk factors include the possibility of so-called payment gridlocks in settlements with the Company's customers related to the abovementioned restrictions on commercial activity or cessation of horeca, and thus access to financial re- sources, which in turn may translate into difficulties in maintaining liquid sales and timely settlement of payables. As at the date of publication of the hereby quarterly financial statements the Company did not recognise any deterioriation in payments from customers as compared to the situation prior to the outbreak.

XXIX. Factors that may affect future results of Capital Group Żywiec S.A.

Business activities of Grupa Żywiec S.A. are impacted by weather, exchange rates and changes in channel structure, which are heavily impacted by the global COVID pandemics so it is even more difficult than before to forecast precisely the results for the remaining part of the year. In the Management Board's opinion main risk factors from the outbreak include restrictions on access of consumers to stores, restrictions on HoReCa and the ban on the organization of mass events, all of which, if maintained at the current level for a longer dura- tion, may lead to reduced turnover and as a result lower Company revenues.

Management do not expect the temporary closing of borders to significantly affect the Company's annual results due to the availability of raw materials from domestic sources, and the more limited materiality of exports in its annual financial results.

12/22

CAPITAL GROUP ŻYWIEC S.A.

Consolidated Quarterly financial statement

TRANSLATION ONLY

As on and for the period ended 31.03.2020

1. Additional explanatory notes to the cash flows

The Capital Żywiec Group S.A.
Trade and other payables	31 March 2020	31 March 2019
Trade and other payables - balance sheet movement for the period	59,394	60,527
Investment liabilities - movement for the period	18,265	(8,280)
Change in trade and other payables in consolidated cash flow	77,659	52,247
Grupa Żywiec S.A.
Trade and other payables	31 March 2020	31 March 2019
Trade and other payables - balance sheet movement for the period	43,035	42,268
Investment liabilities - movement for the period
(826)	(2,064)
Change in trade and other payable in consolidated cash flow	42,209	40,204

XXXI. Reporting according to segmentation of the activity and geographic areas (in thousand PLN)

According to principles described in annual financial statements for 2019 in hereby interim consolidated financial statements a combination of all operating segments into one reporting segment is used.

Presented below are the disclosures as required by provisions stipulated in § 32-34 of IFRS 8.

Capital Group Żywiec S.A.
Information concerning products and services
Revenue from external customers (in PLN thousand)
	Za okres	Za okres
	od 01.01.2020	od 01.01.2019
	do 31.03.2020	do 31.03.2019
Group beer	770,100	606,693
TOTAL:	770,100	606,693

Information concerning geographic segments

In case of presenting information in geographical segments, revenue is determined by the criterion of the location of the customer.

Revenue (in PLN thousand)		Za okres	Za okres
		od 01.01.2020	od 01.01.2019
		do 31.03.2020	do 31.03.2019
Poland		753,790	586,610
Other countries		16,310	20,083
TOTAL:	770,100	606,693

All tangible assets are located in Poland, except of small part of returnable packaging which are located abroad on clients' site.

13/22

CAPITAL GROUP ŻYWIEC S.A.

Consolidated Quarterly financial statement

TRANSLATION ONLY

As on and for the period ended 31.03.2020

Information concerning major customers

In the reporting period, the Company has reached more than 10% of the total revenue from transactions with a single external client, i.e. Distribev Orbico Sp. z o.o. in the amount of PLN 94,624 thousand.

Grupa Żywiec S.A.
Information concerning products and services
Revenue from external customers (in PLN thousand)
		Za okres	Za okres
		od 01.01.2020	od 01.01.2019
		do 31.03.2020	do 31.03.2019
Group beer		656,856	609,151
TOTAL:	656,856	609,151

Information concerning geographic segments

In case of presenting information in geographical segments, revenue is determined by the criterion of the location of the customer:

Revenue (in PLN thousand)		Za okres	Za okres
	od 01.01.2020	od 01.01.2019
		do 31.03.2020	do 31.03.2019
Poland		641,045	589,088
Other countries		15,811	20,063
TOTAL:	656,856	609,151

All tangible assets are located in Poland, except of small part of returnable packaging which are located abroad on clients' site.

Information concerning major customers

In the reporting period, the Company has reached more than 10% of the total revenue from transactions with a single external client, i.e. Distribev Orbico Sp. z o.o. in the amount of PLN 93,967 thousand.

14/22

all amounts in PLN thousand unless otherwise stated

TRANSLATION ONLY

Capital Group Żywiec S.A.

As on and for the period ended 31.03.2020

1

CONSOLIDATED STATEMENT OF FINANCIAL

POSIOTION

	31st March 2020	31st December 2019
Non-current assets	1 755 520	1 734 639
Tangible fixed assets	1 174 950	1 156 444
Right of use	59 627	63 069
Intangible fixed assets	381 798	386 961
Deferred income tax asset	91 584	78 726
Investment is associated companies	27 238	30 066
Other long-term receivables	20 323	19 373
Current assets	999 250	847 271
Inventories	197 947	142 999
Trade and other receivables	731 753	684 577
Current income tax asset	42 165	1 150
Financial derivative assets	9 890	7 159
Cash and cash equivalents	17 477	11 368
Non-current assets held for sale	18	18
Total assets	2 754 770	2 581 910
Equity	41 087	86 836
Share capital	25 678	25 678
Share premium	113 654	113 654
Other capitals	16 322	27 177
Retained earnings and net profit for the period	(114 567)	(79 673)
Capital and reserves attributable to the equity holders of the Company	41 087	86 836
Liabilities	2 713 683	2 495 074
Non-current liabilities	1 263 701	1 166 505
Loans and indebted commercial papers	1 150 000	1 050 000
Lease liabilities	38 923	42 200
Financial derivative liabilities	2 020	-
Retirement benefit and jubilee bonuses obligations	24 768	24 768
Deferred income tax liabilities	47 794	49 341
Other non-current liabilieties	196	196
Current liabilieties	1 449 982	1 328 569
Loans and indebted commercial papers	164 484	103 600
Financial derivative liabilities	12 732	1 351
Lease liabilities	14 504	13 656
Retirement benefit and jubilee bonuses obligations	750	750
Current deferred income tax liabilities	4 797	11 926
Trade and other payables	1 244 767	1 185 373
Provisions for other liabilieties and charges	7 948	11 913
Total equity and liabilities	2 754 770	2 581 910

15/22

all amounts in PLN thousand unless otherwise stated

TRANSLATION ONLY

Capital Group Żywiec S.A.

As on and for the period ended 31.03.2020

2

CONSOLIDATED STATEMENT OF PROFIT AND LOOS AND OTHER

COMPREHENSIVE INCOME

	For the period	For the period
	from 01.01.2020	from 01.01.2019
	till 31.03.2020	till 31.03.2019
Net sales of finished products, goods for resale and materials	770 100	606 693
Cost of finished products, goods for resale and materials sold	(565 170)	(412 734)
Gross profit on sales	204 930	193 959
Selling and distribution expenses	(178 137)	(136 227)
General and administration expenses	(48 135)	(45 778)
Other expenses	(6)	-
Other (losses)/gains - net	1 110	523
Operating (loss)/profit	(20 238)	12 477
Interest income	27	16
Interest costs	(8 144)	(3 193)
Other financial income/(costs) - net	(11 593)	2 874
Share in profit/(losses) of associates accounted for using the equity method - net	(2 828)	(3 286)
(Loss)/profit before income tax	(42 776)	8 888
Income tax	7 882	(2 395)
Net (loss)/profit for the period	(34 894)	6 493
Other comprehensive income from the valuation of financial instruments	(10 855)	4 836
Total profit and loss and other comprehensive income for the period	(45 749)	11 329
Attributable to:
- Shareholders of the Company	(34 894)	6 493
- total profit and loss and other comprehensive income attributable to shareholders of the company	(45 749)	11 329
Weighted average number of ordinary shares	10 271 337	10 271 337
(Loss)/earnings per ordinary share (in PLN)	(3,40)	0,63

Diluted (loss)/earnings per ordinary share equal earnings per ordinary share.

16/22

all amounts in PLN thousand unless otherwise stated

TRANSLATION ONLY

Capital Group Żywiec S.A.

As on and for the period ended 31.03.2020

3

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY		Reserve capital /sale of					Retained earnings
						Equity attributable to
	Share Capital	shares over their		Other Capitals		and net profit at the	Total equity
			shareholders
		nominal value/					end of the period
			Other reserve capital	Revaluation	including	Other reserve
			reserve	deferred tax	capitals
Current period
Balance at 1st January 2020	25 678	113 654	18 808	(1 093)	257	9 462	(79 673)	86 836	86 836
Profit and loss and other comprehensive income for the reporting period
Revaluation of financial instruments hedging the risk of changes in raw material prices	-	-	-	(10 855)	2 546	-	-	(10 855)	(10 855)
Net loss for the period	-	-	-	-	-	-	(34 894)	(34 894)	(34 894)
Profit and loss and other comprehensive income for the reporting period	-	-	-	(10 855)	2 546	-	-	(45 749)	(45 749)
Total Payments from and to owners	-	-	-	-	-	-	-	-	-
Balance at 31st March 2020	25 678	113 654	18 808	(11 948)	2 803	9 462	(79 673)	41 087	41 087
Comparable period
Balance at 1st January 2019	25 678	113 654	18 808	(6 259)	1 468	4 903	152 951	309 735	309 735
Profit and loss and other comprehensive income for the reporting period								-
Revaluation of financial instruments hedging the risk of changes in raw material prices	-	-	-	4 836	(1 134)	-	-	4 836	4 836
Net profit for the period	-	-	-	-	-	-	6 493	6 493	6 493
Profit and loss and other comprehensive income for the reporting period	-	-	-	4 836	(1 134)	-	6 493	11 329	11 329
Total Payments from and to owners	-	-	-	-	-	-	-	-	-
Balance at 31st March 2019	25 678	113 654	18 808	(1 423)	334	4 903	159 444	321 064	321 064

17/22

all amounts in PLN thousand unless otherwise stated

TRANSLATION ONLY

Capital Group Żywiec S.A.

As on and for the period ended 31.03.2020

4
	For the period	For the period
	from 01.01.2020	from 01.01.2019
	till 31.03.2020	till 31.03.2019
CONSOLIDATED STATEMENT OF CASH FLOW
Cash flows from operating activities
(Loss)/profit before income tax attributable to shareholders of the Company	(42 776)	8 888
Total adjustments	(21 933)	33 906
Loss/(profit) from associates valued by equity method	2 828	3 286
Depreciation	50 104	39 008
Income tax (paid)/returned	(52 120)	(9 302)
Value of options	(2 732)	(3 257)
Dividends and interest received	(27)	(16)
Interests costs	8 144	3 662
Loss/(profit) on sales and disposal of tangible fixed assets	(1 110)	(523)
Impairment of non current assets	2 360	2 975
Decrease/increase in inventories	(54 948)	(49 888)
Decrease/increase in provisions for other liabilities and charges	(3 965)	(2 352)
Decrease/increase in trade and other receivables	(48 126)	(1 935)
Decrease/increase in trade and other payables	77 659	52 247
Other adjustments	-	1
Net cash flow from operating activities	(64 709)	42 794
Cash flow from investing activities
Sales of intangible fixed assets and tangible fixed assets	1 296	1 219
Interest received	27	16
Other investing (outflows)/inflows	355	(202)
Purchases of intangible fixed assets and tangible fixed assets	(81 021)	(60 447)
Net cash flow from investing activities	(79 343)	(59 414)
Net cash flow from financing activities
Credits and loans received	100 000	350 000
Finance lease obligations paid	(2 580)	(2 877)
Interest paid	(7 847)	(3 557)
Net cash flow from financing activities	89 573	343 566
Total net cash flow	(54 479)	326 946
Balance sheet change in cash and cash equivalents and bank overdrafts	(54 479)	326 946
Total cash and cash equivalents and bank overdrafts at the beginning of the period	(90 992)	(148 131)
Total cash and cash equivalents and bank overdrafts at the end of the period	(145 471)	178 815

18/22

all amounts in PLN thousand unless otherwise stated

TRANSLATION ONLY

Żywiec Group S.A.

As on and for the period ended 31.03.2020

1

STATEMENT OF FINANCIAL POSITION

	31st March 2020	31st December 2019
Non-current assets	1 629 170	1 595 330
Tangible fixed assets	932 856	905 788
Right of use	33 997	35 897
Intangible fixed assets	24 697	26 674
Deferred income tax asset	85 972	76 280
Investment in related parties	526 828	526 828
Investment is associated companies	5 497	5 497
Other long-term receivables	19 323	18 366

Current assets

Inventories

Trade and other receivables Current income tax asset Current financial assets Cash and cash equivalents

999 851	884 205
143 527	115 379
668 704	638 846
40 928	-
143 500	128 500
3 192	1 480

Total assets	2 629 021	2 479 535
Kapitał własny	142 712	187 604
Share capital	25 678	25 678
Share premium	113 654	113 654
Other capitals	16 322	27 177
Merger difference	(251 496)	(251 496)
Retained earnings and net profit for the period	238 554	272 591
Liabilities	2 486 309	2 291 931
Non-current liabilities	1 201 110	1 100 729
Loans and indebted commercial papers	1 150 000	1 050 000
Lease liabilities	26 676	28 315
Financial derivative liabilities	2 020	-
Retirement benefit and jubilee bonuses obligations	22 414	22 414
Current liabilieties	1 285 199	1 191 202

Loans and indebted commercial papers Lease liabilities

Financial derivative liabilities

Retirement benefit and jubilee bonuses obligations Current deferred income tax liabilities

Trade and other payables

Provisions for other liabilieties and charges

123 518	71 704
6 922	6 488
12 732	1 351
628	628
-	9 556
1 135 610	1 092 575
5 789	8 900

Total equity and liabilities	2 629 021	2 479 535

19/22

all amounts in PLN thousand unless otherwise stated

TRANSLATION ONLY

Żywiec Group S.A.

As on and for the period ended 31.03.2020

2

STATEMENT OF PROFIT AND LOOS AND OTHER

COMPREHENSIVE INCOME

Net sales of finished products, goods for resale and materials Cost of finished products, goods for resale and materials sold

For the period	For the period
from 01.01.2020	from 01.01.2019
till 31.03.2020	till 31.03.2019
656 856	609 151
(471 910)	(413 179)

Gross profit on sales	184 946	195 972

Selling and distribution expenses General and administration expenses Other (losses)/gains - net

(170 307)	(153 212)
(35 532)	(37 035)
387	(409)

Operating (loss)/profit	(20 506)	5 316
Interest income	914	16
Interest costs	(7 673)	(2 893)
Other financial income/(costs) - net	(13 917)	(374)
(Loss)/profit before income tax	(41 182)	2 065
Income tax	7 145	(1 791)
Net (loss)/profit for the period	(34 037)	274
Other comprehensive income from the valuation of financial instruments	(10 855)	4 836
Total profit and loss and other comprehensive income for the period	(44 892)	5 110
Weighted average number of ordinary shares	10 271 337	10 271 337
(Loss)/earnings per ordinary share (in PLN)	(3,31)	0,03

Diluted earnings per ordinary share equal earnings per ordinary share.

20/22

all amounts in PLN thousand unless otherwise stated

TRANSLATION ONLY

Żywiec Group S.A.

As on and for the period ended 31.03.2020

3
		Reserve capital /sale of						Retained earnings
STATEMENT OF CHANGES IN EQUITY	Share Capital	shares over their nominal		Other Capitals		Merger difference	and net profit at the	Total equity
		value/						end of the period
			Other reserve capital	Revaluation	including deferred	Other reserve
			reserve	tax	capitals
Current period
Balance at 1st January 2020	25 678	113 654	18 808	(1 093)	257	9 462	(251 496)	272 591	187 604
Profit and loss and other comprehensive income for the reporting period
Revaluation of financial instruments hedging the risk of changes in raw material prices	-	-	-	(10 855)	2 546	-	-	-	(10 855)
Net loss for the period	-	-	-	-	-	-	-	(34 037)	(34 037)
Profit and loss and other comprehensive income for the reporting period	-	-	-	(10 855)	2 546	-	-	(34 037)	(44 892)
Balance at 31st March 2020	25 678	113 654	18 808	(11 948)	2 803	9 462	(251 496)	238 554	142 712
Comparable period
Balance at 1st January 2019	25 678	113 654	18 808	(6 259)	1 468	4 903	(251 496)	409 025	314 313
Profit and loss and other comprehensive income for the reporting period
Revaluation of financial instruments hedging the risk of changes in raw material prices	-	-	-	4 836	(1 134)	-	-	-	4 836
Net profit for the period	-	-	-	-	-	-	-	274	274
Profit and loss and other comprehensive income for the reporting period	-	-	-	4 836	(1 134)	-	-	274	5 110
Balance at 31st March 2019	25 678	113 654	18 808	(1 423)	334	4 903	(251 496)	409 299	319 423

21/22

	all amounts in PLN thousand unless otherwise stated	TRANSLATION ONLY
Żywiec Group S.A.
As on and for the period ended 31.03.2020
4
	STATEMENT OF CASH FLOW
		For the period	For the period
	Cash flows from operating activities	from 01.01.2020	from 01.01.2019
		till 31.03.2020	till 31.03.2019
	(Loss)/Profit before income tax	(41 182)	2 065
	Total adjustments	(30 812)	30 248
	Depreciation	30 805	30 315
	Income tax (paid)/returned	(50 484)	(9 302)
	Dividends and interest received	(914)	(16)
	Interests costs	7 673	2 893
	Loss/(profit) on sales and disposal of tangible fixed assets	(387)	409
	Impairment of non current assets	2 360	3 000
	Decrease/increase in inventories	(28 148)	(36 803)
	Decrease/increase in provisions for other liabilities and charges	(3 111)	(1 574)
	Decrease/increase in trade and other receivables	(30 815)	1 121
	Decrease/increase in trade and other payables	42 209	40 204
	Other adjustments	-	1
	Net cash flow from operating activities	(71 994)	32 313

Cash flow from investing activities

Sales of intangible fixed assets and tangible fixed assets

Sales of investment in land, buildings and intangible fixed assets Interest received

Other investing (outflows)/inflows

Purchases of intangible fixed assets and tangible fixed assets Loans

Net cash flow from investing activities

97	-
-	(9)
914	16
355	(202)
(55 488)	(63 741)
(15 000)	-
(69 122)	(63 936)

Net cash flow from financing activities
Credits and loans received	100 000	350 000
Finance lease obligations paid	(1 314)	(2 295)
Interest paid	(7 370)	(2 792)
Net cash flow from financing activities	91 316	344 913
Total net cash flow	(49 800)	313 290
Balance sheet change in cash and cash equivalents and bank overdrafts	(49 800)	313 290
Total cash and cash equivalents and bank overdrafts at the beginning of the period	(69 078)	(114 452)
Total cash and cash equivalents and bank overdrafts at the end of the period	(118 878)	198 838

22/22