Apator S A : Consolidated quarterly report of the Apator Group for the 4Q of 2023

April 12, 2024 at 04:32 am EDT

Consolidated Quarterly Report of Apator Group for 4 Quarters 2023

Financial Report

Consolidated Quarterly Report of Apator Group for 4 Quarters 2023

Toruń, February 29, 2024

Name of entity:		Apator Group
Period covered by the financial statements:	1/01/2023-31/12/2023	Reporting currency:	Polish zloty (PLN)
Rounding level:	all amounts are expressed in thousands of Polish zloty (unless otherwise indicated)

Consolidated Quarterly Report of Apator Group for 4 Quarters 2023

Selected financial data, including key items of the summary financial statement (also converted into EUR)

	in thous. PLN	in thous. EUR
SPECIFICATION	4 quarters of	2022	4 quarters	2022
2023	of 2023

Revenue from sales of products, goods and materials	1,137,503	1,081,792	251,193	230,743
Profit on operating activities	52,828	31,340	11,666	6,685
EBITDA	108,945	87,067	24,058	18,571
adjusted EBITDA*	117,203	101,683	25,882	21,689
Gross profit	40,228	15,915	8,883	3,395
Net profit	18,313	7,205	4,044	1,537
Adjusted net profit**	36,415	21,821	8,041	4,654
Net profit (loss) attributable to shareholders of the Group's	17,854	6,616	3,943	1,411
parent company

Net profit (loss) attributable to non-controlling interests	459	589	101	126
Weighted average number of shares	29,047,073	29,070,559	29,047,073	29,070,559
Net profit (loss) per ordinary share [PLN/share]	0.61	0.23	0.14	0.05
Cash flows from operating activities	109,751	52,153	24,236	11,124
Cash flows from investment activities	(27,059)	(47,066)	(5,975)	(10,039)
Cash flows from financial activities	(88,733)	(12,939)	(19,595)	(2,760)
Total cash flows	(6,041)	(7,852)	(1,334)	(1,675)
Consolidated statement	31/12/2023	Year 2022	31/12/2023	Year 2022
Total assets	975,166	1,042,047	224,279	222,190
Fixed assets	488,949	527,979	112,454	112,578
Current assets	486,217	514,068	111,825	109,612
Equity with non-controlling interests	548,686	539,148	126,193	114,959
Non-controlling interests	2,151	1,801	495	384
Share capital	3,265	3,265	751	696
Long-term liabilities and provisions	75,963	45,174	17,471	9,632
Short-term liabilities and provisions	350,517	457,725	80,616	97,598
Weighted average number of shares	29,047,073	29,070,559	29,047,073	29,070,559
Net book value per common share [PLN/share]	18.89	18.55	4.34	3.95

*) EBITDA and net profit for 2022 adjusted for the write-down of development work and goodwill of the UK company GWi (Gas segment), EBITDA for Q1-Q4 2023. adjusted for the write-down of intangible assets, net profit Q1-Q4 2023 additionally adjusted for the write-down of an asset caused by a tax loss related to GWi (Gas segment).

The above financial data for the 12 months of 2023 and 2022 and as of December 31, 2022, have been translated into EUR according to the following principles:

the individual items of the statement of comprehensive income and the statement of cash flows - at an exchange rate representing the arithmetic mean of the average EUR exchange rates set by the National Bank of Poland on the last day of each month of the reporting period: from January 1 to December 31, 2023 - EUR/PLN 4.5284 and from January 1 to December 31, 2022 - EUR/PLN 4.6883;
individual items of the statement of financial position - according to the average EUR exchange rate set by the National Bank of Poland as at December 31, 2023 - 4.3480, as at December 31, 2022 - 4.6899.

Name of entity:		Apator Group
Period covered by the financial statements:	1/01/2023-31/12/2023	Reporting currency:	Polish zloty (PLN)
Rounding level:	all amounts are expressed in thousands of Polish zloty (unless otherwise indicated)

Page 2 of 61

Consolidated Quarterly Report of Apator Group for 4 Quarters 2023

Table of contents
Selected financial data, including key items of the summary financial statement (also converted into EUR)	...2
1.	Consolidated financial statements	4
2.	General information	16
3.	Summary of financial results	18
4.	Information on factors that will affect the future results of the Apator Group	26
5.	List of most significant events	30
6.	Additional information	34
7.	Summary	42

8. Information on the principles adopted in the preparation of the report, in particular, information on

	changes in the applied accounting principles (policies)	43
9.	Appendix: Separate Statement of Apator S.A	50

Name of entity:		Apator Group
Period covered by the financial statements:	1/01/2023-31/12/2023	Reporting currency:	Polish zloty (PLN)
Rounding level:	all amounts are expressed in thousands of Polish zloty (unless otherwise indicated)

Page 3 of 61

Consolidated Quarterly Report of Apator Group for 4 Quarters 2023

1. Consolidated financial statements

The consolidated and separate financial statements for the fourth quarter of 2023 have been prepared in accordance with the International Accounting Standards (IAS / IFRS) and related interpretations promulgated in the form of regulations of the European Commission and the Ordinance of the Minister of Finance of 29 March 2018 on current and periodic information provided by issuers of securities and the conditions for recognizing as equivalent the information required by the laws of a non-member state (Dz. U. /Journal of Laws/ of 2018, item 757).

The interim financial statements (consolidated and separate for parent company) for the fourth quarter ended December 31, 2023, have been prepared in accordance with IAS 34 (Interim Financial Reporting). The interim financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual report as of December 31, 2022.

1.1. Consolidated statement of financial position

	as at
SPECIFICATION	31/12/2023	31/12/2022
Fixed assets	488,949	527,979
Intangible assets	96,607	105,831
Goodwill	120,672	122,275
Tangible fixed assets	199,068	212,844
Right to use assets	47,989	46,690
Investment properties	2,234	2,282
Other long-term financial assets	-	1,352
- in other entities	-	1,352
Long-term receivables	4,598	6,437
- from other entities	4,598	6,437
Long-term accruals and prepayments	16	55
Deferred tax assets	17,765	30,213
Current assets	486,217	514,068
Inventories	246,380	251,617
Trade receivables	186,982	189,804
- from other entities	186,982	189,804
Receivables from corporate income tax	6,492	5,741
Receivables from other taxes, customs duties, and social insurance	7,711	12,309
Other short-term receivables	4,228	6,642
- from other entities	4,228	6,642
Other short-term financial assets	4,971	273
- in other entities	4,971	273
Cash and cash equivalents	22,939	28,980
Short-term accruals and prepayments	6,514	5,839
Fixed assets classified as held for sale		12,863
TOTAL ASSETS	975,166	1,042,047

Name of entity:		Apator Group
Period covered by the financial statements:	1/01/2023-31/12/2023	Reporting currency:	Polish zloty (PLN)
Rounding level:	all amounts are expressed in thousands of Polish zloty (unless otherwise indicated)

Page 4 of 61

Consolidated Quarterly Report of Apator Group for 4 Quarters 2023

	as at
SPECIFICATION	31/12/2023	31/12/2022
Equity	548,686	539,148
Equity attributable to the shareholders of the parent company	546,535	537,347
Share capital	3,265	3,265
Own shares	(3,522)	(3,522)
Other capitals	600,182	562,967
Capital from the revaluation of a defined benefit plan	894	1,147
Capital from valuation of hedging transactions and foreign exchange differences on	8,699	2,705
consolidation

Undistributed financial result	(62,983)	(29,215)
- undistributed result from previous years	(75,028)	(35,831)
- result for the current period	17,854	6,616
- write-downs from current year result	(5,809)	-
Non-controlling interests	2,151	1,801
Liabilities	426,480	502,899
Long-term liabilities and provisions	75,963	45,174
Long-term credits and loans	29,545	3,119
- from other entities	29,545	3,119
Other long-term liabilities	4,122	52
- toward other entities	4,122	52
Long-term liabilities from the right to use leased assets (IFRS 16)	32,326	33,299
Provision for deferred income tax	3,451	2,939
Long-term liabilities due to employee benefits	5,315	4,474
Other long-term provisions	1,204	1,291
Short-term liabilities and provisions	350,517	457,725
Short-term credits and loans	162,512	237,350
- from other entities	162,512	237,350
Trade liabilities	89,969	121,894
- toward related entities	351	1,006
- toward other entities	89,618	120,888
Liabilities due to corporate income tax	3,445	1,976
Liabilities due to other taxes, customs duties, and social insurance	16,878	17,107
Other short-term liabilities	32,194	41,978
- toward other entities	32,194	41,978
Short-term liabilities from the right to use leased assets (IFRS 16)	9,148	9,556
Short-term liabilities due to employee benefits	21,048	15,382
Other short-term provisions	15,323	12,482
TOTAL LIABILITIES	975,166	1,042,047

Name of entity:		Apator Group
Period covered by the financial statements:	1/01/2023-31/12/2023	Reporting currency:	Polish zloty (PLN)
Rounding level:	all amounts are expressed in thousands of Polish zloty (unless otherwise indicated)

Page 5 of 61

Consolidated Quarterly Report of Apator Group for 4 Quarters 2023

Information on changes in contingent liabilities or contingent assets that have occurred since the end of the last fiscal year (off-balance sheet items) of the Apator Group:

SPECIFICATION	as at
31/12/2023	31/12/2022

Contingent receivables	1,190	1,225,
Contingent receivables from other entities	1,190	1,225
Contingent liabilities	66,099	65,718
Contingent liabilities concerning related entities	20,126	21,856
- including from granting guarantees and sureties to related entities	20,126	21,856
Contingent liabilities to other entities	45,974	43,862
- including from granting guarantees and sureties	45,974	43,862
Other off-balance sheet items	455,972	367,300,
Mortgage	48,780	58,700
Collective contractual mortgage	182,783	23,250
Security on assets	224,410	285,350
Total off-balance sheet items	523,262	434,243

In addition to contingent liabilities arising from guarantees issued by insurance and banking institutions, the Apator Group has the following collateral established for the repayment of liabilities:

Multi-productagreement with ING Bank Śląski S.A (Group limit of PLN 250 million):
- contractual mortgage on the real estate of Apator S.A. in Ostaszewo up to PLN 40 million (included in the table above),
- registered pledge on inventories owned by Apator S.A., Apator Telemetria Sp. z o.o., Apator Powogaz S.A., FAP Pafal S.A. with a book value of not less than PLN 148.8 million (included in the table above),
- pledge on tangible fixed assets owned by Apator S.A., Apator Powogaz S.A., Apator Metrix S.A., and Apator Telemetria Sp. z o.o. with a contractual value of PLN 30 million (included in the table above),
- Power of Attorney to dispose of funds in bank accounts,
- Blank promissory notes together with promissory note declarations submitted by 6 borrowers' companies (joint and several liability of Group's companies),
- Assignment of rights under an all-risk property insurance policy.
Multi-purposelimit credit agreement with Powszechna Kasa Oszczędności Bank Polski S.A. (PKO BP S.A.) of May 26, 2023, for the total amount of PLN 80 million (in addition to Apator S.A., the parties to the agreement are: Apator Powogaz S.A., Apator Metrix S.A. and GWI):
- contractual mortgage on real estate owned by Apator Powogaz S.A. and Apator Metrix S.A. up to the amount of PLN 182.8 million,
- statement of submission to execution under Article 777 of the Code of Civil Procedure of the companies Apator S.A, Apator Powogaz S.A, and Apator Metrix S.A, to the amount of PLN 80 million,
- registered pledge over fixed assets of Apator S.A. and Apator Powogaz S.A. with a total value of PLN 12.4 million,
- Power of Attorney to dispose of funds in bank accounts,
- Assignment of rights under an all-risk property insurance policy.

Name of entity:		Apator Group
Period covered by the financial statements:	1/01/2023-31/12/2023	Reporting currency:	Polish zloty (PLN)
Rounding level:	all amounts are expressed in thousands of Polish zloty (unless otherwise indicated)

Page 6 of 61

Consolidated Quarterly Report of Apator Group for 4 Quarters 2023

Until December 31, 2023, the working capital credit was drawn by Apator Powogaz in the amount of PLN 10 million and GWI in the amount of GBP 3.94 million, i.e., PLN 19.7 million according to the average exchange rate of the ING BŚ bank as at December 29, 2023

Other collateral for credits and loans:

Apator S.A.

credit agreement with Bank Handlowy S.A. (Long-term credit for the purchase of shares in Apator Telemetria Sp. z o.o. in the amount of 13 million PLN, converted into EUR). The credit was repaid on December 15, 2023. The collateral release procedure is in progress:
- registered pledge on acquired shares in the amount of PLN 12.1 million (included in the table above),
- registered pledge on fixed assets with a total value of PLN 2.8 million (included in the table above),
- assignment of rights under an all-risk property insurance policy,
- declaration of submission to enforcement pursuant to Art. 777 of the Code of Civil Procedure up to PLN 15.6 million remains in force.

Apator Metrix Group

Agreement on credit on current account concluded by George Wilson Industrial Ltd. (GWi) with Citibank N.A.: The credit was refinanced with a line in PKO BP. The collateral release procedure

is in progress:

Pledge on inventories with the value of PLN 18.2 million being the property of Apator Metrix S.A.,
guarantee granted by Apator Metrix S.A. in the amount of GBP 4 million, i.e., PLN 21.4 million, until October 31, 2023,
in force remains the statement on submission to execution under Art. 777 of the Code of Civil Procedure, at a value of GBP 4.8 million, i.e., PLN 24 million according to the average exchange rate of the ING BŚ bank as at December 29, 2023.

Apator Powogaz Group

Investment credit agreement of Apator Powogaz S.A. for the construction of the manufacturing plant, concluded
with PKO BP:
- joint contractual mortgage on real estate owned by Apator Powogaz S.A. in Żerniki in the amount of PLN 182.8 million. The mortgage also secures a multi-purpose agreement with PKO,
- blank promissory note and promissory note declaration,
- assignment of rights under the insurance policy on the mortgaged property.
Agreement on credit on the current account of Apator Powogaz S.A. concluded with mBank S.A. - agreement expired on 29/09/2023:
- blank promissory note with a promissory note declaration - the procedure for returning the promissory note is pending.
Credit agreement for financing suppliers of Apator Telemetria Sp. z o.o. concluded with mBank S.A.:
- blank promissory note and promissory note declaration.
Agreement on credit on the current account of Apator Metra concluded with Raiffeisenbank a.s.:
- mortgage in the amount of CZ 50 million

Name of entity:		Apator Group
Period covered by the financial statements:	1/01/2023-31/12/2023	Reporting currency:	Polish zloty (PLN)
Rounding level:	all amounts are expressed in thousands of Polish zloty (unless otherwise indicated)

Page 7 of 61

Consolidated Quarterly Report of Apator Group for 4 Quarters 2023

assignment of rights under the insurance agreement established on the property of Apator Metra During the reporting period, the Group's companies fulfilled their obligations under their credit agreements.

1.2. Consolidated statement of comprehensive income

			for the period
SPECIFICATION		1/10/2023	1/10/2022	1/01/2023	1/01/2022
		31/12/2023	31/12/2022	31/12/2023	31/12/2022
Revenue from sales and services		284,739	306,792	1,137,503	1,081,792
- to related entities			3,783	-	3,783
- to other entities		284,739	303,009	1,137,503	1,078,009
Cost of goods and services sold		(221,005)	(242,891)	(876,429)	(857,531)
- to related entities		-	(2,528)	-	(2,528)
- to other entities		(221,005)	(240,363)	(876,429)	(855,003)
Gross profit from sales		63,734	63,901	261,074	224,261
Sales costs		(12,314)	(12,315)	(44,821)	(42,422)
General administrative costs		(38,167)	(35,262)	(153,303)	(136,749)
Profit on sales		13,253	16,324	62,950	45,090
Other operating costs:		(8,294)	(3,414)	(10,122)	(14,194)
Revenue		425	2,335	2,979	4,924
Costs		(8,719)	(5,749)	(13,101)	(19,118)
- including the result due to (impairment)/ reversal	784	(2,419)	(466)	(8)
of receivables

Share in profit of entities consolidated using the	-	-	-	444
equity method

Profit on operating activities		4,959	12,910	52,828	31,340
Financial income (costs):		(1,003)	1,578	(12,600)	(15,425)
Revenue		3,459	3,320	8,090	5,268
Costs		(4,462)	(1,742)	(20,690)	(20,693)
- including the result due to (impairment)/ reversal	4	-	31	(3)
of receivables

Profit before tax		3,956	14,488	40,228	15,915
Current income tax		(2,362)	(3,011)	(7,986)	(9,019)
Deferred income tax		(4,580)	(966)	(13,929)	309
Net profit (loss)		(2,986)	10,511	18,313	7,205
			for the period
SPECIFICATION		1/10/2023	1/10/2022	1/01/2023	1/01/2022
		31/12/2023	31/12/2022	31/12/2023	31/12/2022
Other comprehensive income
Other net comprehensive income		441	6,786	5,741	4,767
Items that may be reclassified to profit or loss in the future
Foreign exchange differences on translation of	1,055	(128)	2,839	2,402
foreign operations

Result on hedge accounting with tax effect	(361)	5,681	3,155	1,132
Actuarial gains and losses with tax effect		(253)	1,233	(253)	1,233
Total comprehensive income		(2,545)	17,297	24,054	11,972
Net profit (loss), of which attributable to:		(2,986)	9,254	18,313	7,205
shareholders of the parent company		(3,026)	9,099	17,854	6,616
non-controlling interests		40	155	459	589
Name of entity:			Apator Group
Period covered by the financial statements:	1/01/2023-31/12/2023	Reporting currency:	Polish zloty (PLN)
Rounding level:	all amounts are expressed in thousands of Polish zloty (unless otherwise indicated)

Page 8 of 61

Consolidated Quarterly Report of Apator Group for 4 Quarters 2023

Total comprehensive income, of which attributable to:

shareholders of the parent company non-controlling interests

(2,546)	16,040	24,053	11,972
(2,586)	15,885	23,594	11,383
40	155	459	589

Name of entity:		Apator Group
Period covered by the financial statements:	1/01/2023-31/12/2023	Reporting currency:	Polish zloty (PLN)
Rounding level:	all amounts are expressed in thousands of Polish zloty (unless otherwise indicated)

Page 9 of 61

Consolidated Quarterly Report of Apator Group for 4 Quarters 2023

1.3. Consolidated statement of changes in equity

CAPITAL ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT COMPANY

SPECIFICATION	Share capital

Balance as at 1/01/2023	3,265
Changes in equity from 1/01/2023 to 31/12/2023
Revaluation losses:	-
Cash flow hedging instruments,	-
including:

- gains taken into account in the
measurement of the reporting value	-
of hedged items
Net foreign exchange differences on
translation of financial statements	-
into presentation currency
Taxes related to items presented in	-
or transferred from capital

Net profit for the period from	-
1/01/2023 to 31/12/2023

Comprehensive income recognized in
the period from 1/01/2023 to	-
31/12/2023
Dividends	-
Advance dividends paid	-
Decrease in reserve capital	-
Increase in supplementary capital	-
Distribution of result to	-
supplementary capital

Other changes in capital	-

		Capital from the
Own	Other	revaluation of a
defined benefit
shares	capitals
plan

(3,522)	562,967	1,147
-	-	(327)
-	-	-
-	-	-
-		-
-	-	74
-	-	-
-	-	(253)
-	-	-
-	-	-
-	(10,000)	-
-	10,000	-
-	37,215	-
-		-

Capital from
valuation of
hedging			Non-controlling	TOTAL
transactions and	Undistributed
	interests	EQUITY
foreign exchange	financial result	TOTAL

differences on
consolidation
2,705	(29,215)	537,347	1,801	539,148
-		(327)	-	(327)
3,895	-	3,895	-	3,895
3,895	-	3,895	-	3,895
2,839		2,839	-	2,839
(740)	-	(666)	-	(666)
-	17,854	17,854	459	18,313
5,994	17,854	23,595	459	24,054
-	(8,714)	(8,714)	(109)	(8,823)
-	(5,809)	(5,809)	-	(5,809)
-	-	(10,000)	-	(10,000)
-	-	10,000	-	10,000
-	(37,215)	-	-	-
-	116	116	-	116

Name of entity:		Apator Group
Period covered by the financial statements:	1/01/2023-31/12/2023	Reporting currency:	Polish zloty (PLN)
Rounding level:	all amounts are expressed in thousands of Polish zloty (unless otherwise indicated)

Page 10 of 61

Attachments

Original Link
Original Document
Permalink

Disclaimer

Apator SA published this content on 11 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 April 2024 08:31:08 UTC.

Market Closed - Warsaw S.E. Other stock markets 11:55:56 2024-04-29 am EDT			5-day change	1st Jan Change
14.7 ^PLN	-1.08%		+1.66%	-6.37%

Apator S.A. Reports Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2023	Feb. 29	CI
Apator S.A. Reports Earnings Results for the Third Quarter and Nine Months Ended September 30, 2023	Nov. 15	CI
Apator S.A. Reports Earnings Results for the Second Quarter and Six Months Ended June 30, 2023	23-08-30	CI
Apator S.A. Reports Earnings Results for the First Quarter Ended March 31, 2023	23-05-18	CI
Apator S.A. Reports Earnings Results for the Full Year Ended December 31, 2022	23-02-28	CI
Apator S.A. Reports Earnings Results for the Fourth Quarter Ended December 31, 2022	23-02-28	CI
Apator S.A. Reports Earnings Results for the Third Quarter and Nine Months Ended September 30, 2022	22-11-17	CI
Apator S.A. Reports Earnings Results for the Second Quarter and Six Months Ended June 30, 2022	22-08-31	CI
Companies sell their businesses in Russia	22-08-26	RE
Companies sell their businesses in Russia	22-07-18	RE
Factbox: Companies sell their businesses in Russia	22-06-17	RE
Apator S.A. Reports Earnings Results for the First Quarter Ended March 31, 2022	22-05-19	CI
Apator Plans to Pay Dividend in 2022	22-03-10	CI
Apator S.A. Reports Earnings Results for the Full Year Ended December 31, 2021	22-02-28	CI
Apator S.A. Reports Earnings Results for the Fourth Quarter Ended December 31, 2021	22-02-28	CI
Apator Announces Gross Advance Dividend for 2021, Payable on January 24, 2022	21-11-24	CI
Apator S.A. Reports Earnings Results for the Third Quarter and Nine Months Ended September 30, 2021	21-11-17	CI
Apator S.A. signed letter of intent to acquire TWERD Zaklad Energoelektroniki.	21-11-16	CI
Apator S.A. Reports Earnings Results for the Second Quarter Ended June 30, 2021	21-08-31	CI
Apator S.A. Lands EUR 65 Million Contract to Provide Smart Gas Meters to the Belgian Market	21-07-27	CI
Apator S.A. Announces Dividend Payment	21-06-02	CI
Apator S.A.'s Equity Buyback announced on September 18, 2020, has expired.	21-05-30	CI
Tranche Update on Apator S.A.'s Equity Buyback Plan announced on September 18, 2020.	21-05-17	CI
Apator S.A. Reports Earnings Results for the First Quarter Ended March 31, 2021	21-05-17	CI
Tranche Update on Apator S.A.'s Equity Buyback Plan announced on September 18, 2020.	21-02-26	CI

	1st Jan change	Capi.
APATOR S.A.	-6.37%	107M
SMC CORPORATION	+10.81%	32.91B
MKS INSTRUMENTS, INC.	+19.69%	8.1B
COGNEX CORPORATION	-0.79%	6.98B
BADGER METER, INC.	+20.33%	5.45B
WUHAN GUIDE INFRARED CO., LTD.	-2.74%	4.13B
HORIBA, LTD.	+39.30%	3.95B
RENISHAW PLC	+18.64%	3.8B
INFICON HOLDING AG	+8.13%	3.4B
ESCO TECHNOLOGIES INC.	-11.08%	2.72B

Apator S.A.

Equities

APT

PLAPATR00018

Industrial Machinery & Equipment

Apator S A : Consolidated quarterly report of the Apator Group for the 4Q of 2023

Latest news about Apator S.A.

Chart Apator S.A.

Company Profile

Income Statement Evolution

Analysts' Consensus

Quarterly revenue - Rate of surprise

Sector Testing & Measuring Equipment