Sanok Rubber Spólka Akcyjna : Extended Report for the first quarter of 2020

CONSOLIDATED BALANCE SHEET

(Financial report as of the end of period) - in thousand PLN

31.03.2020	31.12.2019	31.03.2019

Tangible fixed assets Investment real estate Intangible assets

Other long-term accounts receivable Financial assets

Deferred income tax assets

Long-term active prepayments and accrued i

Total fixed assets

Stocks

Trade accounts receivable

Other short-term accounts receivable Income tax assets

Active prepayments and accrued income Financial assets

Cash and cash equivalents

443 741	432 086	380 316
3 489	3 489	3 558
14 078	13 774	14 570
1 560	1 437	1 391
6	6	7
33 469	32 462	13 325
6 561	6 465	6 957
502 904		420 124
489 719
209 474	207 126	188 295
172 360	140 988	183 791
14 335	29 011	13 965
4 750	3 164	2 457
6 772	2 697	6 629
630	2 232	31 320
80 776	79 727	124 459

Total current assets	489 097	464 945	550 916
TOTAL ASSETS	992 001	954 664	971 040

Share capital

Capital from the valuation of warrants Reserve funds

Revaluation capital reserve Capital reserves Retained profit

Foreign exchange differences from calculation

5 376	5 376	5 376
6 291	6 291	6 291
426 285	426 285	371 431
66 670	66 668	73 655
1 062	1 062	2 048
-20 491	-29 379	17 723
-11 319	-6 110	-7 291

Equity attributable to shareholders of the Parent		473 874		470 193		469 233
Entity

Non-controlling interest

Total equity

Credits and debt securities Provisions

Income from future periods Deferred tax provision Financial liabilities

Other liabilities

897	815	1 398
474 771		470 631
471 008
248 405	178 382	6 446
20 144	19 729	17 734
5 594	5 357	5 676
371	379	304
30 272	31 081	26 725
0	0	0

Total long-term liabilities

Credits and debt securities Trade liabilities Financial liabilities

Other short-term liabilities Income tax liabilities Liabilities related to the contract Income from future periods Provisions

304 786		56 885
234 928
38 141	89 937	267 485
103 488	94 197	104 367
5 997	4 295	6 149
27 873	26 552	29 339
110	103	103
9 374	6 972	5 078
926	2 155	2 122
26 535	24 517	28 881

Total short-term liabilities	212 444	248 728	443 524
TOTAL LIABILITIES	992 001	954 664	971 040

1

CONSOLIDATED PROFIT AND LOSS ACCOUNT

	in thousand PLN
	01.01.2020	01.01.2019
	31.03.2020	31.03.2019
Sales revenue	259 808	280 763
Cost of sales	219 788	229 748
Gross profit on sales	40 020	51 015
Selling cost	7 189	7 573
General and administrative expenses	25 162	27 921
Core business result	7 669	15 521
Other operating income	5 076	501
Other operating expenses	853	905
Loss (profit) due to impairment (reversal of losses) of trade receivables and	135	-1
other receivables
Operating result	12 027	15 116
Interest income	293	562
Financial income	402	1 837
Financial expenses	5 270	1 741
Pre-tax profit	7 452	15 774
Income tax	-1 549	- 2302
current	-509	777
deferred	140	-3 079
deferred (activities in Polish Investment Zone)	-1 180
Net profit	9 001	18 076
attributable to shareholders of the Parent Entity	8 900	17 977
attributable to non-controlling interest	101	99
Weighted-average number of shares	26 881 922	26 881 922
Earnings per share	0,33	0,67
Weighted-average diluted number of shares	27 509 164	27 509 164
Diluted earnings per share	0,32	0,65
Revenue from sales of products	224 962	234 328
Revenue from sales of goods and materials	23 339	17 276
Other revenues	11 507	29 159
Total sales revenue including	259 808	280 763
of witch
revenue generated locally	90 889	84 611
revenues from foreign contractors	168 919	196 152

2

CONSOLIDATED CASH FLOW STATEMENT

Net profit

Total adjustments:

• Profit attributable to thenon-controlling shareholders
• Depreciation
• Net foreign exchange (gains) losses
• Net interest and dividends
• Income tax on profit before taxation
• (Gains) losses from investing activities
• Change in provisions
• Change in stocks
• Change in accounts receivable
• Change in liabilities
• Change in active prepayments and accrued income
• Other adjustments
• Income tax paid

Net cash from operating activities

Income from sales of tangible and intangible fixed assets Acquisition of tangible and intangible fixed assets Other income

Income from financial assets

in thousand PLN

For the period from 01.01 to 31.03

2020	2019
8 900	17 977
19 612	5 412
101	99
14 572	12 857
19 214	11
1 007	965
-509	777
-59	-11
2 425	4 126
-2 348	10 803
-16 673	-28 509
17 736	13 870
-6 170	-7 548
-8 771	-1 602
-913	-426
28 512	23 389
109	364
-23 468	-22 776
0	31 324
-4 681	6

Net cash from investing activities	-28 040	8 918
Change in credit status	2 008	6 881
Exchange differences	55	0
Interest paid	-1 007	-965
Dividend paid to shareholders	-480	0
Other	0	-252
Net cash from financing activities	576	5 664
Change in cash	1 048	37 971
Change in cash resulting from foreign exchange differences	1	-37
Cash at beginning of period	79 727	86 525
Change in net cash	1 049	37 934
Cash at end of period	80 776	124 459
including restricted cash	496	54

3

BALANCE SHEET OF SANOK RC SA

(Financial report as of the end of period) - in thousand PLN

	31.03.2020	31.12.2019	31.03.2019
Tangible fixed assets	349 334	337 728	283 260
Investment real estate	0	0	69
Intangible assets	4 985	5 156	6 026
Other long-term accounts receivable	1 560	1 437	1 391
Shares	24 990	24 990	46 972
Financial assets	119 308	111 646	65 025
Deferred income tax assets	29 261	28 398	8 519
Long-term active prepayments and accrued income	1 804	1 884	2 023
Total fixed assets	531 242	511 239	413 285
Stocks	119 451	118 407	101 372
Trade accounts receivable	145 477	117 986	148 348
Other short-term accounts receivable	10 253	24 014	10 797
Active prepayments and accrued income	4 207	1 717	3 396
Financial assets	22 076	21 720	102 222
Cash and cash equivalents	66 156	68 705	114 621
Total current assets	367 620	352 549	480 756
TOTAL ASSETS	898 862	863 788	894 041
Share capital	5 376	5 376	5 376
Reserve funds	387 253	387 253	342 396
Capital from the valuation of warrants	6 291	6 291	6 291
Retained profit	44 375	29 998	86 803
Revaluation capital reserve	62 566	62 566	69 351
Total shareholders' equity	505 861	491 484	510 217
Credits	243 121	172 846
Financial liabilities	22 515	12 436	19 671
Provisions	12 764	23 003	12 358
Income from future periods			0
Total long-term liabilities	278 400	208 285	32 029
Credits and debt securities	6	54 559	234 360
Trade liabilities	66 947	58 591	73 000
Financial liabilities	2 914	1 344	1 651
Other short-term liabilities	18 672	19 563	18 694
Income tax liabilities	0	0	0
Liabilities related to the contract	1 218	4 534	0
Income from future periods	755	1 998	1 911
Provisions	24 089	23 430	22 179
Total short-term liabilities	114 601	164 019	351 795
TOTAL LIABILITIES	898 862	863 788	894 041

4

PROFIT AND LOSS ACCOUNT OF SANOK RC SA

Sales revenue

Cost of sales

Gross profit on sales

Selling cost

General and administrative expenses

Core business result

Other operating income Other operating expenses

Loss (profit) due to impairment (reversal of losses) of trade receivables and other receivables

		in thousand PLN
01.01.2020		01.01.2019
31.03.2020		31.03.2019
187 334	202 493
156 643	167 885
30 691	34 608
2 146	2 493
12 362	14 340
16 183	17 775
103		339
803		685
3		2 448

Operating result	15 480	14 981
Interest income	1 710	1 842
Financial income	399	1 326
Financial expenses	4 425	1 378
Pre-tax profit	13 164	16 771
Income tax	-1 549	-2 803
current	-765	429
deferred	396	-401
deferred (activities in the Polish Investment Zone)	-1 180	-2 831
Net profit	14 713	19 574

Weighted-average number of shares Earnings per share

Weighted-average diluted number of shares Diluted earnings per share

Revenue from sales of products

Revenue from sales of goods and materials Other revenues

26 881 922	26 881 922
0,55	0,73
27 509 164	27 509 164
0,53	0,71
179 217	188 789
827	3 507
7 290	10 197

Total sales revenue including	187 334	202 493
of witch
revenue generated locally	67 693	68 970
revenues from foreign contractors	119 641	133 523

5

CASH FLOW STATEMENT OF SANOK RC SA

		in thousand PLN
		For the period from 01.01 to 31.03
		2020	2019
Net profit	14 713	19 574
Total adjustments:	10 227	14 957
−	Depreciation	11 253	9 589
−Net foreign exchange (gains) losses	9 844	-636
−Net interest and dividends	-659	-566
−Income tax on profit before taxation	-765	428
−(Gains) losses from investing activities	47	8
−	Change in provisions	987	3 047
−	Change in stocks	-1 044	8 803
−Change in accounts receivable	-12 549	-9 888
−	Change in liabilities	8 623	10 080
−Change in active prepayments and accrued income	-4 514	-6 159
−	Other adjustments	-339	341
−	Income tax paid	-657	-90
Net cash from operating activities	24 940	34 531
Income from sales of tangible and intangible fixed assets	4	345
Income from repayment of loans	268
Income from repayment of interest on loans	989	1 062
Other investing cash inflow		27 366
Acquisition of tangible and intangible fixed assets	-22 739	-20 879
Outflows for financial assets		-2 232
Other	-4 400	-4 095
Net cash from investing activities	-25 878	1 567
Proceeds from credits taken		337
Repayment of credits	-497
Interest paid	-779	-729
Financial expenses (leasing)	-322	-248
Net cash from financing activities	-1 599	-640
Change in cash	-2 537	35 458
Change in cash resulting from foreign exchange differences	-12	-33
Cash at beginning of period	68 705	79 196
Change in net cash	-2 549	35 425
Cash at end of period	66 156	114 621
including restricted cash	480	24

6