Integer pl : Report on the activity of Integer.pl SA Capital Group for first half of 2013

REPORT ON THE ACTIVITY OF Integer.pl SA CAPITAL GROUP First half of 2013

- Kraków, 29 August 2013 -

Contents:

1. Main principles adopted for the preparation of the consolidated semi-annual report 4

2. Basic information on the parent company Integer.pl SA and subsidiaries 5

3. Description of key risks and threats 7

4. Selected financial data, including basic items disclosed in the semi-annual condensed consolidated financial statements and the semi-annual condensed financial statements, translated to EUR. 16

5. Characteristics of selected economic and financial figures disclosed in the consolidated semi- annual financial statements 17

6. Operations of Integer.pl SA Capital Group 19
7. Description of operations carried out by the companies of the Group which are direct subsidiaries of the Issuer 19
8. The main activities carried out by the Capital Group - sales structure 21
9. The activities of the Capital Group and the main areas in which the activities were focused in the first half of 2013 21
10. Seasonality of sales 24
11. Markets 24
12. Sources of supply 24

13. Shareholders holding directly or indirectly through subsidiaries at least 5% of the total number of votes at the General Meeting of Integer.pl SA on the date of the Consolidated Semi-Annual Report, and changes in the structure of major shareholdings of Integer.pl SA in the period from the last consolidated quarterly report in accordance with information held by Integer.pl SA 24

14. The holding of the Issuer's shares or rights to shares by members of the Issuer's Management Board or Supervisory Board as at the date of submission of this quarterly report, including any changes thereof from the date of submission of the previous quarterly report, separately for each such shareholder 25

15. A brief description of the Issuer's achievements and failures in the first half of 2013, including the associated most significant events 26
16. Contracts concluded between shareholders and Integer.pl SA 37
17. Changes in numbers of shares held in the first half of 2013 and until the date of the report publication 37
18. Issue, redemption and repayment of equity and non-equity securities 38

19. Loans, borrowings and sureties and guarantees 39
20. Information on loan and borrowing contracts concluded and terminated in a given financial year, with the specification of at least their amount, type and interest rate, currency and maturity date. 39
21. Information on loans granted in the financial year, with particular attention to loans granted to the Issuer's related parties, with the specification of at least their amount, type and interest rate, currency and maturity date 50
22. Information on lease contracts concluded 54
23. Information on sureties and guarantees granted and received in the financial year, with particular emphasis on sureties and guarantees granted to the Issuer's related parties 54

24. Description of the organisation of the Capital Group with the specification of entities subject to consolidation and description of changes in the organisation of the capital group. Organisational and capital relations of the group's companies with other entities 54
25. Major domestic and foreign investments (securities, financial instruments, intangible assets and property), including capital investments performed outside the Group of related entities and methods of their financing 55
26. Information on major transactions concluded by the issuer or its subsidiary with related entities under conditions other than market conditions, including the amount and information specifying the nature of these transactions 55

27. Expected development of Integer.pl SA Capital Group 55

28. Other essential information for the assessment of the human resources, assets, financial position, financial result, and any changes thereof in the Capital Group, as well as other material information 59

29. Changes in basic management principles of the Issuer's enterprise 67

30. Employees in the Group's companies 67

31. Any contracts concluded between the Issuer and the managing persons, providing for the compensation in case of their resignation or dismissal from the position held without a serious reason or when their recall or dismissal is the result of the Issuer's merger by acquisition 67

32. The position of the Management Board regarding the possibility of achieving previously published forecast results for the year, in view of the results presented in the quarterly report in relation to forecast results 67

33. Events after the reporting date of the semi-annual report, which are not disclosed in the consolidated financial statements and separate condensed financial statements, but could have a significant impact on the Group's financial results in the future and separate financial results of Integer.pl SA. 68

34. Statement of the Management Board concerning the preparation of the semi-annual condensed financial statements and semi-annual consolidated report of the Management Board 69

1 Main principles adopted for the preparation of the consolidated semi-annual report

Pursuant to §33 section 3 of the Regulation of the Minister of Finance of 19 February 2009 on the on-going and periodic information provided by issuers of securities and the conditions under which certain information required under the laws of a non-Member State may be considered equivalent (Polish Journal of Laws Dz. U. No. 33, item 259, as amended), Integer.pl SA, the parent company of the Capital Group, does not provide a separate semi-annual report, but includes condensed semi-annual financial statements, together with the report of the entity authorized to audit financial statements on the review of this report, and the notes containing the information and data that are essential for a proper assessment of the financial position and financial results, and were not included in the consolidated financial statements in its consolidated semi-annual report.

The consolidated semi-annual report includes:

1. Semi-annual consolidated management report on operations of Integer.pl SA Capital Group (Management Report).

2. Management Report concerning:

   • semi-annual condensed consolidated financial statements and semi-annual condensed financial statements

   • the entity authorised to audit financial statements and auditors.

3. Semi-annual consolidated financial statements.

4. Semi-annual financial statements.

5. Report of the entity authorised to audit financial statements on a review of semi-annual condensed consolidated financial statements and semi-annual condensed financial statements.

The company's Management Board is responsible for the preparation of the semi-annual financial statements.

The auditor reviews semi-annual financial statements to express his written opinion and find whether the semi-annual financial statements have been prepared in all material respects in accordance with IAS 34 Interim Financial Reporting.

The Supervisory Board is an authorized body for the appointment of an auditor to review the financial statements in accordance with the provisions of the Articles of Association and the applicable regulations.

An auditor authorised by the company's Supervisory Board to audit the financial statements and consolidated financial statements is Deloitte Polska Sp. z o.o., capital company, with its registered office in Warsaw at Al. Jana Pawła II 19, entered on the list of entities authorised to audit financial statements under number 73.

The said documentation is prepared by the Capital Group companies on the basis of their books of account and the underlying documents based on which entries in the accounting records are made, as well as any other necessary documents and information. The accounting policies adopted in the preparation of the semi-annual consolidated financial statements and the semi-annual condensed financial statements are described in the notes to those statements.

The semi-annual consolidated financial statements cover Integer.pl SA as the parent company and the following entities of Integer.pl SA Capital Group as at 30 June 2013.