Sanok Rubber Spólka Akcyjna : Extended Report for the first six months 2020

Interim Condensed Consolidated Financial Standing Statement

	in thousand PLN
		As at
Specification	30/06/2020	31/12/2019	30/06/2019
	(unaudited)		(unaudited)
Tangible fixed assets	435 556	432 086	400 488
Investment properties	3 489	3 489	3 558
Non-tangible assets	12 901	13 774	13 147
Other long-term receivables	1 501	1 437	1 414
Financial assets	6	6	7
Deferred tax assets	40 674	32 462	16 490
Long-term prepayments	6 232	6 465	6 707
Total fixed assets	500 359	489 719	441 811
Inventory	202 051	207 126	199 269
Trade receivables	125 706	140 988	169 541
Other short-term receivables	11 406	29 011	14 176
Income tax receivables	3 530	3 164	2 014
Prepayments	6 875	2 697	6 209
Financial assets	619	2 232	11 682
Cash	91 595	79 727	118 537
Total current assets	441 782	464 945	521 428
TOTAL ASSETS	942 141	954 664	963 239
Share capital	5 376	5 376	5 376
Own shares	0	0	0
Valuation of warrants (incentive scheme)	6 291	6 291	6 291
Supplementary capital	513 475	426 285	425 329
Reserve capital	1 062	1 062	1 062
Retained profits	-105 650	-29 379	-53 668
Revaluation reserve	66 658	66 668	67 526
Exchange rate differences	-9 635	-6 110	-5 973
Total equity of the Parent Company	477 577	470 193	445 943
Non-controlling interests	995	815	679
Overall equity of the Parent Company and non-controlling interests	478 572	471 008	446 622
Credits and debt securities	221 221	178 382	34 507
Long-term provisions	19 817	19 729	17 830
Deferred income	5 387	5 357	5 531
Provision for deferred tax	336	379	377
Other financial liabilities	30 417	31 081	31 999
Other liabilities	0	0	0
Total long-term liabilities	277 178	234 928	90 244
Credits and debt securities	58 282	89 937	225 436
Trade liabilities	61 505	94 197	103 734
Other financial liabilities	4 388	4 295	5 433
Other short-term liabilities	21 988	26 552	54 383
Income tax liabilities	190	103	91
Contractual liabilities	13 397	6 972	7 279
Deferred income	2 490	2 155	3 493
Short-term provisions	24 151	24 517	26 524
Total short-term liabilities	186 391	248 728	426 373
TOTAL LIABILITIES	942 141	954 664	963 239
			1

Interim Condensed Consolidated Profit and Loss Account

in thousand PLN

			01/04/2020		01/01/2020		01/04/2019		01/01/2019
	Specification	Note	30/06/2020		30/06/2020		30/06/2019		30/06/2019
			(unaudited)		(unaudited)		(unaudited)		(unaudited)
	Sales revenues	10	181 079	440 887	258 913	539 676
	Cost of sales		146 812	366 600	216 712	446 460
	Gross profit (loss) on sales		34 267		74 287		42 201		93 216
	Selling costs		6 317	13 506	8 784	16 357
	General and administrative costs		41 518	66 680	28 587	56 508
	Profit/loss on core business		-13 568		-5 899		4 830		20 351
	Other operating revenues	11	9 862	14 938	2 746	3 247
	Other operating expenses	11	149		1 002	791		1 696
	Impairment loss (profit) (loss reversal) of trade and other		388		523		814		813
	receivables
	Profit/loss on operating activity		-3 467		8 560		7 599		22 715
	Interest revenues	12	166		459		504		1 066
	Other financial revenues	12	-2		400		-670		1 167
	Financial expenses	12	836		6 106	721		2 462
	Gross profit/loss (before taxation)		-4 139		3 313		6 712		22 486
	Total income tax		-6 054	-7 603	-2 145	-4 447
	including:
	Current		1 202	693		921		1 698
	Deferred	16	-538		-398		823		575
	Deferred from operations in the Polish Investment Zone	16	-6 718	-7 898	-3 889	-6 720
	Net result		1 915	10 916	8 857	26 933
	attributable to:
	shareholders of the parent company		1 826	10 726	8 715	26 692
	non-controlling shareholders		89		190		142		241
	Weighted average number of shares				26 881 922			26 881 922
	Earnings per share				0,40				0,99
	Diluted weighted average shares				27 509 164			27 509 164
	Diluted earnings per share				0,39				0,97

2

Interim Condensed Consolidated Cash Flow Statement

in thousand PLN

	For the period from 01/01 to 30/06
Specification		(unaudited)
	2020		2019
Net profit		10 726		26 692
Total adjustments for:		46 931		23 217
- Profit for non-controlling shareholders	190		241
- Amortisation	29 972		26 056
- Net exchange gains (losses)	13 931		-414
- Net interest and dividends	1 610		-864
- Income tax on profit before tax	693		1 698
- Profit (loss) on investment activities	951		-55
- Change in provisions	-321		1 938
- Change in inventory	5 075		-171
- Change in receivables	33 233		-14 462
- Change in liabilities	-20 406		15 930
- Change in prepayments and deferred income	-11 792		-8 817
- Other adjustments	-4 839		3 061
- Income tax paid	-1 366		-924
Net cash flows from operating activity		57 657		49 909
Inflows from sale of fixed assets and intangible and legal assets	153		878
Purchase of fixed assets and intangible and legal assets	-32 479		-56 078
Inflows from financial assets	0		6
Other investment cash flows	-9 894		47 322
Net cash flows from investment activity		-42 220		-7 872
Inflows from credits taken	57 001		0
Other financial inflows	53		0
Repayment of credits	-57 410		-7 340
Paid interest	-1 610		-1 532
Financial expenditure on lease	-940		-26
Other financial outflows	-676		-1 185
Net cash flows from financing activity		-3 582		-10 083
Change in cash and cash equivalents	11 855		31 954
Net exchange differences in cash and cash equivalents	13		58
Opening balance of cash		79 727		86 525
Net change in cash	11 868		32 012
Closing balance of cash	91 595		118 537
including of limited disposability	220		142

3

Interim Condensed Financial Standing Statement of SANOK RC SA

		in thousand PLN
						As at
	Specification		30/06/2020			31/12/2019			30/06/2019
			(unaudited)					(unaudited)
	Tangible fixed assets	345 151		337 728		305 178
	Investment properties	0		0		69
	Non-tangible assets	4 196		5 156		5 047
	Other long-term receivables	1 501		1 437		1 414
	Shares	24 990		24 990		47 137
	Financial assets	117 059		111 646		66 015
	Deferred tax assets	36 345		28 398		12 243
	Long-term prepayments	1 694		1 884		1 981
	Total fixed assets		530 936			511 239			439 084
	Inventories	118 447		118 407		107 186
	Trade receivables	99 886		117 986		137 802
	Other short-term receivables	7 883	24 014		12 069
	Prepayments	4 044		1 717		2 704
	Financial assets	21 238		21 720		81 985
	Cash	75 257		68 705		108 444
	Total current assets		326 755			352 549			450 190
	TOTAL ASSETS	857 691	863 788	889 274
	Share capital	5 376		5 376		5 376
	Supplementary capital	421 591		387 253		386 598
	Capital from valuation of warrants	6 291		6 291		6 291
	(incentive scheme)
	Retained profits	19 395		29 998		36 211
	Revaluation reserve	62 555		62 566		63 220
	Total equity		515 208			491 484			497 696
	Credits	208 979		172 846		27 889
	Provisions	12 235		12 436		15 056
	Lease liabilities	23 090		23 003		25 418
	Deferred revenues
	Long-term liabilities (in total)		244 304			208 285			68 363
	Loans	26 490		54 559		188 666
	Trade liabilities	35 203		58 591		66 898
	Financial liabilities	1 716		1 344		1 496
	Other short-term liabilities	9 312		19 563		42 920
	Income tax liabilities	0		0		0
	Contractual liabilities	3 509		4 534		0
	Deferred revenues	254		1 998		3 046
	Provisions	21 695		23 430		20 188
	Short-term liabilities (in total)		98 179			164 019			323 215
	TOTAL LIABILITIES	857 691	863 788	889 274

4

Interim Condensed Profit and Loss Account of SANOK RC SA

in thousand PLN

				01/04/2020		01/01/2020			01/04/2019		01/01/2019
	Specification			30/06/2020		30/06/2020			30/06/2019		30/06/2019
			(unaudited)		(unaudited)			(unaudited)		(unaudited)
	Sales revenues	113 564	300 898		186 611	389 104
	Cost of sales	88 230	244 873		155 102	322 987
	Gross profit (loss) on sales			25 334		56 025			31 509		66 117
	Selling costs	1 705	3 851		3 181	5 674
	General and administrative costs	29 312	41 674		14 054	28 394
	Profit/loss on core business	-5 683	10 500		14 274	32 049
	Other operating revenues	6 899	7 002		537		876
	Other operating expenses	135		938		634		1 319
	Impairment loss of trade and other receivables	138		141		1 008	3 457
	Profit/loss on operating activity			943		16 423			13 169		28 149
	Interest revenues	1 545	3 255		1 811	3 654
	Financial revenues	444		843		2 607	3 933
	Financial expenses	561		4 986		293		1 671
	Gross profit/loss (before taxation)	2 371	15 535		17 294	34 065
	Income tax (in total)	-6 444	-7 994		-3 228	-6 031
	Current	765		0		488		917
	Deferred	-491		-95		173		-228
	Deferred from activity in the Polish Investment Zone	-6 718	-7 898		-3 889	-6 720
	Net result	8 815	23 529		20 522	40 096
	Weighted average number of shares					26 881 922				26 881 922
	Earnings per share in PLN					0,88				1,49
	Diluted weighted average shares					27 509 164				27 509 164
	Diluted earnings per share in PLN					0,86				1,46

5

Interim Condensed Cash Flow Statement of SANOK RC SA

in thousand PLN

			For the period from 01/01 to 30/06
	Specification		2020		2019
		(unaudited)		(unaudited)
	Net profit	23 529	40 096
	Total adjustments for:		28 440		20 861
	- Amortisation and/or depreciation	23 456	19 397
	- Net exchange gains, losses	7 671	1 070
	- Net interest and dividends	-1 619	-1 554
	- Profit before tax	0	917
	- Profit, loss on investment activities	1 100	-47
	- Change in provisions	-1 937	3 753
	- Change in inventories	-41	2 990
	- Change in receivables	34 822	-985
	- Change in liabilities	-23 335	2 228
	- Change in prepayments and deferred income	-11 827	-8 014
	- Other adjustments	807	1 310
	- Income tax paid	-657	-204
	Net cash flows from operating activity		51 969		60 958
	Inflows from the sale of fixed assets and intangibles	4	749
	Inflows from financial assets	0	63
	Inflows from loans repayments	315	0
	Inflows from the repayment of interest on loans granted	2 296	2 376
	Other inflows from investment activity	0	47 239
	Purchase of fixed and intangible assets	-31 632	-52 592
	Expenses on financial assets	0	-5 305
	Other outflows from investment activity	-11 040	-5 002
	Net cash flows from investment activity		-40 057		-12 471
	Inflows from credits taken	51 009	0
	Repayment of credits	-54 539	-17 702
	Interest paid	-1 219	-1 125
	Other financial outflows	-621	-489
	Net cash flows from financing activity		-5 370		-19 316
	Change in cash and cash equivalents		6 542		29 171
	Net exchange differences in cash and cash equivalents		10		77
	Opening balance of cash	68 705	79 196
	Net change in cash		6 552		29 248
	Closing balance of cash	75 257	108 444
	including of limited disposability		72		53

6