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

Consolidated Financial Standing Statement

	in thousand PLN
		As at
Specification	30/09/2020	31/12/2019	30/09/2019
	(unaudited)		(unaudited)
Tangible fixed assets	425 143	432 086	418 833
Investment properties	3 489	3 489	3 558
Non-tangible assets	12 510	13 774	13 383
Other long-term receivables	1 460	1 437	1 509
Financial assets	6	6	7
Deferred tax assets	37 795	32 462	20 287
Long-term prepayments	6 064	6 465	6 752
Total fixed assets	486 467	489 719	464 329
Inventories	184 851	207 126	197 724
Trade receivables	167 852	140 988	173 414
Other short-term receivables	8 514	29 011	17 809
Income tax receivables	1 883	3 164	1 580
Prepayments	5 474	2 697	5 184
Financial assets	510	2 232	1 392
Cash	130 664	79 727	80 315
Total current assets	499 748	464 945	477 418
TOTAL ASSETS	986 215	954 664	941 747
Share capital	5 376	5 376	5 376
Valuation of warrants (incentive scheme)	6 291	6 291	6 291
Supplementary capital	514 295	426 285	425 630
Reserve capital	964	1 062	1 062
Retained profits	-86 462	-29 379	-45 699
Revaluation reserve	66 658	66 668	67 528
Exchange rate differences	-12 101	-6 110	-7 134
Total equity of the Parent Company	495 021	470 193	453 054
Non-controlling interests	384	815	800
Overall equity of the Parent Company and non-controlling interests	495 405	471 008	453 854
Credits and debt securities	91 173	178 382	58 496
Long-term provisions	19 308	19 729	17 633
Deferred income	5 352	5 357	5 734
Provision for deferred tax	332	379	377
Other financial liabilities	29 086	31 081	35 300
Total long-term liabilities	145 251	234 928	117 540
Credits and debt securities	186 055	89 937	201 774
Trade liabilities	91 930	94 197	102 370
Other financial liabilities	4 265	4 295	6 514
Other short-term liabilities	17 634	26 552	23 482
Income tax liabilities	171	103	401
Contractual liabilities	17 394	6 972	5 792
Deferred income	1 440	2 155	3 565
Short-term provisions	26 670	24 517	26 455
Total short-term liabilities	345 559	248 728	370 353
TOTAL LIABILITIES	986 215	954 664	941 747

1

Consolidated Profit and Loss Account

in thousand PLN

	01/07/2020	01/01/2020	01/07/2019	01/01/2019
Specification	30/09/2020	30/09/2020	30/09/2019	30/09/2019
	(unaudited)	(unaudited)	(unaudited)	(unaudited)
Sales revenues	265 228	706 115	265 208	804 884
Cost of sales	215 626	582 226	221 808	668 268
Gross profit (loss) on sales	49 602	123 889	43 400	136 616
Selling costs	7 714	21 220	8 637	24 994
General and administrative costs	23 887	90 567	26 687	83 195

Profit/loss on core business activity

Other operating revenues

Other operating expenses

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

					8 076	28 427
18 001	12 102
7 517		22 455		482	3 729
1 104		2 106		443	2 139
-371			152		-802	11

	Operating result	24 043		32 603		7 313		30 028
	Interest revenues	76		535		286		1 352
	Other financial revenues	159		559		1 147		2 314
	Financial expenses	913		7 019		2 724		5 186
	Gross profit/loss (before tax)	23 365		26 678		6 022		28 508
	Total income tax	3 389		-4 214		-2 418		-6 865
	including:
	Current	509		1 202		1 222		2 920
	Deferred	-109		-507		196		771
	Deferred from operations in the Polish Investment	2 989		-4 909		-3 836		-10 556
	Zone
	Net result	19 976		30 892		8 440		35 373
	including
	Shareholders of the parent company	19 907		30 633		8 325		35 017
	Non-controlling interests	69		259		115		356
	Weighted average number of shares			26 881 922		26 881 922
	Earnings per share			1.14			1.30
	Diluted weighted average shares			27 509 164		27 509 164
	Diluted earnings per share			1.11			1.27

2

Consolidated Cash Flow Statement

in thousand PLN

	For the period from 01/01 to 30/09
Specification		(unaudited)
	2020		2019
Net profit		30 633		35 017
Total adjustments for items:		75 803		21 032
- Profit for non-controlling shareholders	259		356
- Amortisation and/or depreciation	46 079		40 140
- Net exchange gains losses	16 515		1 339
- Net interest and dividends	1 249	2 223
- Income tax on profit before tax	1 202	2 920
- Profit loss on investment activities	916		-76
- Change in provisions	1 685		1 672
- Change in inventory	22 275		1 374
- Change in receivables	-5 764		-23 192
- Change in liabilities	7 961		10 385
- Change in prepayments and deferred revenues	-8 429	-11 359
- Other adjustments	-8 005		-3 424
- Income tax paid	-140		-1 326
Net cash flows from operating activity		106 436		56 049
Inflows from the sale of fixed assets and intangible and legal assets	355		1 083
Purchase of the fixed assets and intangible and legal assets	-36 759		-83 678
Minority shareholders' dividend	-357		-861
Other investment flows	-8 414		59 108
Net cash flows from investment activity		-45 175		-24 348
Inflows from credits taken	54 814		0
Other financial inflows	158		0
Repayment of credits	-60 645		-7 142
Interest paid	-2 152		-2 223
Financial expenditure on lease	-2 390		-813
Dividends paid to owners	0		-26 882
Other financial outflows	-95		-844
Net cash flows from financing activities		-10 310		-37 904
Change in cash and cash equivalents	50 951	-6 203
Net exchange differences in cash and cash equivalents	-14	-7
Opening balance of cash		79 727		86 525
Net change in cash	50 937		-6 210
Closing balance of cash	130 664	80 315
including of limited disposability	276		126

3

Financial Standing Statement of SANOK RC SA

	in thousand PLN
					As at
Specification			30/09/2020		31/12/2019			30/09/2019
			(unaudited)				(unaudited)
Tangible fixed assets	337 114	337 728	324 237
Investment properties	0	0		69
Non-tangible assets	3 860	5 156	5 088
Other long-term receivables	1 460	1 437	1 509
Shares	24 990	24 990	56 222
Financial assets	118 548	111 646	68 041
Deferred tax assets	33 400	28 398	16 738
Long-term prepayments	1 613	1 884	1 959
Total fixed assets	520 985	511 239	473 863
Inventories	105 288	118 407	105 889
Trade receivables	141 378	117 986	139 727
Other short-term receivables	4 457	24 014	14 863
Prepayments	2 634	1 717	2 392
Financial assets	21 622	21 720	72 604
Cash	111 285	68 705	71 125
Total current assets	386 664	352 549	406 600
TOTAL ASSETS	907 649	863 788	880 463
Share capital	5 376	5 376	5 376
Supplementary capital	421 591	387 253	386 598
Valuation of warrants (incentive scheme)	6 291	6 291	6 291
Retained profits	42 370	29 998	47 431
Revaluation reserve	62 556	62 566	63 220
Equity capital	538 184	491 484	508 916
Loans	82 066	172 846	48 753
Provisions	11 622	12 436	15 490
Lease liabilities	22 022	23 003	29 155
Deferred revenues
Total long-term liabilities	115 710	208 285	93 398
Loans	155 448	54 559	169 536
Trade liabilities	61 943	58 591	65 644
Financial liabilities	1 925	1 344	2 695
Other short-term liabilities	7 336	19 563	17 349
Income tax liabilities	0		0		153
Contractual liabilities	3 873	4 534	0
Deferred revenues	10	1 998	3 493
Provisions	23 220	23 430	19 278
Total short-term liabilities	253 755	164 019	278 149
TOTAL LIABILITIES		907 649	863 788	880 463

4

Profit and Loss Account of SANOK RC SA

in thousand PLN

				01/07/2020			01/01/2020			01/07/2019			01/01/2019
	Specification			30/09/2020			30/09/2020			30/09/2019			30/09/2019
			(unaudited)			(unaudited)			(unaudited)			(unaudited)
	Sales revenues	183 761		484 659			186 428		575 532
	Cost of sales	151 636		396 509			153 688		476 675
	Gross profit (loss) on sales			32 125			88 150			32 740			98 857
	Selling costs	2 360		6 211			3 124		8 798
	General and administrative costs	12 148		53 822			14 111		42 505
	Profit/loss on core business activity			17 617			28 117			15 505			47 554
	Other operating revenues	5 857		12 859			162		1 038
	Other operating expenses	-196			742			327		1 646
	Loss on trade and other receivables	200			341			3 989		7 446
	Operating result			23 470			39 893			11 351			39 500
	Interest revenues	1 474		4 729			1 687		5 341
	Financial revenues	1 296		2 139			1 093		5 026
	Financial expenses	425			5 411			6 504		8 175
	Gross profit/loss (before tax)			25 815			41 350			7 627			41 692
	Total income tax	2 926		-5 068			-3 838		-9 869
	Current	0			0			600		1 517
	Deferred	-64			-159			-602		-830
	Deferred from operation in the Polish Investment Zone	2 989		-4 909			-3 836		-10 556
	Net result	22 889		46 418			11 465		51 561
	Weighted average number of shares						26 881 922						26 881 922
	Profit per share in PLN						1.73						1.92
	Diluted weighted average shares						27 509 164						27 509 164
	Diluted earnings per share in PLN						1.69						1.87

5

Cash Flow Statement of SANOK RC SA

in thousand PLN

			For the period from 01/01 to
	Specification	30/09
		2020		2019
			(unaudited)	(unaudited)
	Net profit	46 418		51 561
	Total adjustments for items:		44 450		21 998
	- Amortisation and/or depreciation	36 286		30 071
	- Net exchange gains losses	8 709		-1 242
	- Net interest and dividends	-3 523		-5 436
	- Profit before tax	0		1 517
	- Profit loss on investment activities	1 085		-47
	- Change in provisions	-1 024		3 276
	- Change in inventory	13 119		4 287
	- Change in receivables	-4 881		-6 271
	- Change in liabilities	399		152
	- Change in prepayments and deferred income	-7 634		-11 729
	- Other adjustments	886		7 560
	- Income tax paid	1 029		-140
	Net cash flows from operating activity		90 868		73 559
	Inflows from the sales of fixed assets and intangibles	133		749
	Inflows from financial assets	873		2 930
	Inflows from loans repayments	315		0
	Inflows from the repayment of interest on loans granted	3 393		3 593
	Other inflows from investment activities	0		60 418
	Purchase of fixed and intangible assets	-36 203		-78 381
	Expenses on financial assets	0		-19 586
	Other outflows from investment activities	-9 641		-6 067
	Net cash flows from investment activity		-41 130		-36 344
	Inflows from credits taken	49 908		0
	Repayment of credits	-54 539		-16 096
	Interest paid	-1 621		-1 526
	Dividends paid to owners	0		-26 882
	Financial expenditure on lease	-891		-774
	Net cash flows from financing activities		-7 143		-45 278
	Change in cash and cash equivalents		42 595		-8 063
	Net exchange differences in cash and cash equivalents	-15		-8
	Opening balance of cash	68 705		79 196
	Net change in cash		42 580		-8 071
	Closing balance of cash	111 285		71 125
	including of limited disposability		75		15

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