Consolidated quarterly report of Apator Group for 3 quarters 2023

Financial report

Consolidated quarterly report of Apator Group for 3 quarters 2023

Toruń, 15 November 2023

Name of the certifying

Apator Group

Period covered by the financial statements:

01.01.2023 - 30.09.2023

Reporting currency:

Polish zloty (PLN)

Rounding level:

all amounts are expressed in thousands of PLN (unless stated otherwise)

Consolidated quarterly report of Apator Group for 3 quarters 2023

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

in thousands PLN

in thousands EUR

SPECIFICATION

III quarters

III quarters

III quarters

III quarters

2023

2022

2023

2022

Revenues from sales of products, goods and materials

852 764

776 426

186 303

165 619

Profit (loss) from operating activities

47 869

19 749

10 458

4 213

EBITDA

90 380

61 632

19 745

13 147

EBITDA excluding one-off events*

90 380

72 330

19 745

15 429

Gross profit (loss)

36 272

2 684

7 924

573

NET PROFIT (LOSS)

21 299

-2 049

4 654

-437

Net profit excluding one-off events*

28 205

8 649

6 162

1 845

Net profit (loss) attributable to shareholders of the Group's

20 880

-2 483

4 562

-530

parent company

Net profit (loss) attributable to non-controlling interests

419

434

92

93

Weighted average number of shares

29 047 073

29 078 474

29 047 073

29 078 474

Net profit (loss) per ordinary share [PLN/share]

0.72

-0.09

0.16

-0.02

Cash flows from operating activities

23 618

-4 388

5 160

-936

Cash flows from investing activities

(16 934)

(39 145)

(3 700)

(8 350)

Cash flows from financial activity

(14 171)

26 421

(3 096)

5 636

Total cash flows

(7 487)

(17 112)

(1 636)

(3 650)

Consolidated statement

30.09.2023

2022

30.09.2023

2022

Total assets

1 059 389

1 042 047

228 534

222,190

Fixed assets

506 869

527 979

109 343

112 578

Current assets

552 520

514 068

119 191

109 612

Equity with non-controlling interests

557 048

539 148

120 167

114 959

Non-controlling interests

2 111

1 801

455

384

Share capital

3 265

3 265

704

696

Long-term liabilities and provisions

77 464

45 174

16 711

9 632

Short-term liabilities and provisions

424 877

457 725

91 655

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]

19.18

18.55

4.14

3.95

*) EBITDA and net income for Q1-Q3 2022. cleared of write-down of UK GWi development work, Q1-Q3 net profit 2023. adjusted for tax asset write-down related to GWi.

The above financial data for the 9 months of 2023 and 2022 and as of 31 December 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 1 January to 30 September 2023 - EUR/PLN 4.5773 and from 1 January to 30 September 2022 - EUR/PLN 4.6880;
  • individual items of the statement of financial position - according to the average EUR exchange rate set by the National Bank of Poland as of 30 September 2023 - 4.6356, as of 31 December 2022 - 4.6899.

Name of the certifying

Apator Group

Period covered by the financial statements:

01.01.2023 - 30.09.2023

Reporting currency:

Polish zloty (PLN)

Rounding level:

all amounts are expressed in thousands of PLN (unless stated otherwise)

Page 2 of 58

Consolidated quarterly report of Apator Group for 3 quarters 2023

Table of contents

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

...2

2.

General information

14

3.

Summary of financial results

16

4.

Information on factors that will affect the future results of the Apator Group

24

5.

List of most significant events

28

6.

Additional information

31

7.

Summary

38

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

changes in the applied accounting principles (policies)

39

9. Appendix: Separate Report of Apator S.A.. ...........................................................................................44

Name of the certifying

Apator Group

Period covered by the financial statements:

01.01.2023 - 30.09.2023

Reporting currency:

Polish zloty (PLN)

Rounding level:

all amounts are expressed in thousands of PLN (unless stated otherwise)

Page 3 of 58

Consolidated quarterly report of Apator Group for 3 quarters 2023

1. Consolidated financial statements

The consolidated and separate financial statements for the third 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 parent company) for the third quarter ended 30 September 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 31 December 2022.

1.1. Consolidated statement of financial position

SPECIFICATION

as of

30.09.2023

31.12.2022

Fixed assets

506 869

527 979

Intangible assets

103 886

105,831

Goodwill

121 966

122,275

Tangible fixed assets

202 867

212,844

Right to use assets

50 577

46,690

Investment properties

2 260

2 282

Other long-term financial assets

-

1 352

- in other entities

-

1 352

Long-term receivables

5 122

6 437

- from other entities

5 122

6 437

Long-term accruals and prepayments

41

55

Deferred tax assets

20 150

30 213

Current assets

552 520

514 068

Inventories

283 044

251 617

Trade receivables

216 678

189 804

- from other entities

216 678

189 804

Receivables from corporate income tax

5 812

5 741

Receivables from other taxes, customs duties, and social insurance

7 669

12 309

Other short-term receivables

5 448

6 642

- from other entities

5 448

6 642

Other short-term financial assets

5 077

273

- in other entities

5 077

273

Cash and cash equivalents

21 493

28 980

Short-term accruals and prepayments

7 299

5 839

Fixed assets classified as held for sale

-

12 863

TOTAL ASSETS

1 059 389

1 042 047

Name of the certifying

Apator Group

Period covered by the financial statements:

01.01.2023 - 30.09.2023

Reporting currency:

Polish zloty (PLN)

Rounding level:

all amounts are expressed in thousands of PLN (unless stated otherwise)

Page 4 of 58

Consolidated quarterly report of Apator Group for 3 quarters 2023

SPECIFICATION

as of

30.09.2023

31.12.2022

Equity

557 048

539 148

Equity attributable to the shareholders of the parent company

554 937

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

1 147

1 147

Capital from valuation of hedging transactions and foreign exchange

8 005

2 705

differences on consolidation

Undistributed financial result

(54 140)

(29 215)

- undistributed result from previous years

(75 020)

(35 831)

- result for the current period

20 880

6 616

Non-controlling interests

2 111

1 801

Liabilities

502 341

502 899

Long-term liabilities and provisions

77 464

45 174

Long-term credits and loans

30 879

3 119

- from other entities

30 879

3 119

Other long-term liabilities

1 924

52

- towards other entities

1 924

52

Long-term liabilities from the right to use leased assets (IFRS 16)

35 987

33 299

Provision for deferred income tax

2 909

2 939

Long-term liabilities due to employee benefits

4 474

4 474

Other long-term provisions

1 291

1 291

Short-term liabilities and provisions

424 877

457 725

Short-term credits and loans

224 773

237 350

- from other entities

224 773

237 350

Trade liabilities

101 846

121 894

- towards related entities

314

1 006

- towards other entities

101 532

120 888

Liabilities due to corporate income tax

2 873

1 976

Liabilities due to other taxes, customs duties, and social insurance

21 899

17 107

Other short-term liabilities

33 038

41 978

- towards other entities

33 038

41 978

Short-term liabilities from the right to use leased assets (IFRS 16)

8 298

9 556

Short-term liabilities due to employee benefits

17 777

15 382

Other short-term provisions

14 373

12 482

TOTAL LIABILITIES

1 059 389

1 042 047

Name of the certifying

Apator Group

Period covered by the financial statements:

01.01.2023 - 30.09.2023

Reporting currency:

Polish zloty (PLN)

Rounding level:

all amounts are expressed in thousands of PLN (unless stated otherwise)

Page 5 of 58

Consolidated quarterly report of Apator Group for 3 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 of

30.09.2023

31.12.2022

Contingent receivables

1 190

1 225

Contingent receivables from other entities

1 190

1 225

Contingent liabilities

62 752

65 718

Contingent liabilities concerning related entities

21 546

21 856

- including from granting guarantees and sureties to related entities

21 546

21 856

Contingent liabilities to other entities

41 206

43 862

- including from granting guarantees and sureties

41 206

43 862

Other off-balance sheet items

448 271

367 300

Mortgage

40,000

58 700

Collective contractual mortgage

182 783

23 250

Security on assets

225 489

285 350

Total off-balance sheet items

512 214

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),
    • zledge on tangible fixed assets owned by Apator S.A., Apator Powogaz S.A., Apator Metrix S.A. and ApatorTelemetria Sp. z o.o. with a contractual value of PLN 31.1 million (included in the table above),
    • Power of Attorney to dispose of funds in bank accounts,
    • Blank promissory notes together with promissory notes 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 26 May 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. and Apator Metrix S.A.):
    • contractural 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 each of the three companies up to PLN 80 million,
    • registered pledge over fixed assets of Apator S.A. and Apator Powogaz S.A. with a total value of PLN12.4 million,
    • Power of Attorney to dispose of funds in bank accounts,
    • Assignment of rights under an all-risk property insurance policy.

Until 30 September 2023, the working capital loan has only been drawn down by Apator Powogaz in the amount of PLN 10 million.

Name of the certifying

Apator Group

Period covered by the financial statements:

01.01.2023 - 30.09.2023

Reporting currency:

Polish zloty (PLN)

Rounding level:

all amounts are expressed in thousands of PLN (unless stated otherwise)

Page 6 of 58

Consolidated quarterly report of Apator Group for 3 quarters 2023

  • Other collateral for loans and credits:

Apator S.A.

  • credit agreement with Bank Handlowy S.A. (Long-term credit for purchase of shares in Apator Telemetria Sp. z o.o. in the amount of 13 million PLN, converted into EUR):
    • 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,
    • statement of submission to execution under Article 777 of the Code of Civil Procedure up to PLN 15.6 million.

Apator Metrix Group

  • Agreement on credit on current account concluded by George Wilson Industrial Ltd. (GWi) with Citibank N.A.:
    • 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 31 October 2023,
    • statement of submission to execution under Art. 98 of the Code of Civil Procedure at a value of GBP 4.8 million, i.e. PLN 25.7 million.

Apator Powogaz Group

  • Investment credit agreement of Apator Powogaz S.A. for the construction of manufacturing plant, concluded
    with PKO BP:
    • joint contractural mortgage on real estate owned by Apator Powogaz S.A. in Żerniki to 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 current account of Apator Powogaz S.A. concluded with mBank S.A. - the 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 current account of Apator Metra concluded with Raiffeisenbank a.s.
    • Mortgage in the amount of CZ 50 million
    • assignment of rights under insurance agreement established on property of Apator Metra

During the reporting period, the Group's companies fulfilled their obligations under their loan agreements.

Name of the certifying

Apator Group

Period covered by the financial statements:

01.01.2023 - 30.09.2023

Reporting currency:

Polish zloty (PLN)

Rounding level:

all amounts are expressed in thousands of PLN (unless stated otherwise)

Page 7 of 58

Consolidated quarterly report of Apator Group for 3 quarters 2023

1.2. Consolidated statement of comprehensive income

for the period

SPECIFICATION

01.07.2023

01.07.2022

01.01.2023

01.01.2022

30.09.2023

30.09.2022

30.09.2023

30.09.2022

Revenue from sales and services

288 693

281 226

852 764

776 426

- to other entities

288 693

281 226

852 764

776 426

Cost of goods and services sold

(223 326)

(224 931)

(655 424)

(614 640)

- to other entities

(223 326)

(224 931)

(655 424)

(614 640)

Gross sales profit

65 367

56 295

197 340

161 786

Sales costs

(10 242)

(10 419)

(32 507)

(30 107)

General administrative costs

(38 841)

(31 385)

(115 136)

(101 487)

Sales profit

16 284

14 491

49 697

30 192

Other operating revenues (costs)

530

(9 930)

(1 828)

(10 443)

Revenue

1 443

734

2 554

2 589

Costs

(913)

(10 664)

(4 382)

(13 032)

- including the result due to (impairment)/ reversal of

(56)

4 147

(1 250)

2 411

receivables

Profit on operating activities

16 814

4 561

47 869

19 749

(+) Financial costs

(5 240)

(7 183)

(11 597)

(17 065)

Revenue

1 252

502

4 631

3 318

Costs

(6 492)

(7 685)

(16 228)

(20 383)

- including the result due to (impairment)/ reversal of

27

(3)

27

(3)

receivables

Profit (loss) before tax

11 574

(2 622)

36 272

2 684

Current income tax

(1 701)

(1 454)

(5 624)

(6 008)

Deferred income tax

(1 478)

715

(9 349)

1 275

NET PROFIT (LOSS)

8 395

(3 361)

21 299

(2 049)

for the period

SPECIFICATION

01.07.2023

01.07.2022

01.01.2023

01.01.2022

30.09.2023

30.09.2022

30.09.2023

30.09.2022

Other comprehensive income

Other net comprehensive income

2 785

(172)

5 300

(2 019)

Foreign exchange differences on translation of foreign

3 701

2 923

1 784

2 530

operations

Result on hedge accounting with tax effect

(916)

(3 095)

3 516

(4 549)

Total comprehensive income

11 180

(3 533)

26 599

(4 068)

Net profit (loss), of which attributable to:

8 395

(3 361)

21 299

(2 049)

- shareholders of the parent company

8 456

(3 475)

20 880

(2 483)

non-controlling interests

(61)

114

419

434

Total comprehensive income, of which attributable to:

11 180

(3 533)

26 599

(4 068)

- shareholders of the parent company

11 241

(3 647)

26 180

(4 502)

non-controlling interests

(61)

114

419

434

Name of the certifying

Apator Group

Period covered by the financial statements:

01.01.2023 - 30.09.2023

Reporting currency:

Polish zloty (PLN)

Rounding level:

all amounts are expressed in thousands of PLN (unless stated otherwise)

Page 8 of 58

Consolidated quarterly report of Apator Group for 3 quarters 2023

1.3. Consolidated statement of changes in equity

CAPITAL ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT COMPANY

Capital from

valuation of

Non-controlling

TOTAL

SPECIFICATION

Share

Unregistered

Own

Other

Capital from the

hedging

Undistributed

interests

EQUITY

reduction in share

revaluation of a

transactions and

TOTAL

capital

shares

capitals

financial result

capital

defined benefit plan

foreign exchange

differences on consolidation

Balance as at 01.01.2023

3 265

Changes in equity during the period from 01.01.2023 to 30.09.2023

Comprehensive income

Net profit for the period from

-

01.01.2023 to 30.09.2023

Distribution of result to supplementary

-

capital

Other comprehensive income

Items that may be reclassified to profit or loss in the future:

Result on hedge accounting with tax

-

effect

Net foreign exchange differences on

translation of financial statements into

-

presentation currency

Comprehensive income recognised in

the period from 01.01.2023 to

-

30.09.2023

Transactions with owners recognised directly in equity:

-

(3 522)

562 967

1 147

2 705

(29 215)

537 347

1 801

539 148

-

-

-

-

-

20 880

20 880

419

21 299

-

-

-

-

-

(37 217)

(37 217)

-

(37 217)

-

-

-

-

3 516

-

3 516

-

3 516

-

-

-

-

1 784

-

1 784

-

1 784

-

-

-

-

5 300

(16 337)

(11 037)

419

(10 618)

Dividends

Other changes in capital

Total transactions with owners in the period from 01.01.2023 to 30.09.2023

Balance as at 30.09.2023

-

-

-

-

-

-

(8 714)

(8 714)

(109)

(8 823)

-

-

-

-

-

-

126

126

-

126

-

-

-

-

-

-

(8 588)

(8 588)

(109)

(8 697)

3 265

-

(3 522)

562 967

1 147

8 005

(54 140)

517 722

2 111

519 833

Name of the certifying

Apator Group

Period covered by the financial statements:

01.01.2021 - 30.09.2022

Reporting currency:

Polish zloty (PLN)

Rounding level:

all amounts are expressed in thousands of PLN (unless stated otherwise)

Page 9 of 58

Consolidated quarterly report of Apator Group for 3 quarters 2023

CAPITAL ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT COMPANY

Capital from valuation

SPECIFICATION

Unregistered

Capital from the

of hedging

Non-controlling

TOTAL

Share

Own

Other

revaluation of a

transactions and

Undistributed

reduction in share

TOTAL

interests

EQUITY

capital

shares

capitals

defined benefit

foreign exchange

financial result

capital

plan

differences on

consolidation

Balance as at 01.01.2022

3 278

-

(3 972)

553 460

(86)

1 684

(7 019)

547 345

3 930

551 275

Changes in equity during the period from 01.01.2022 to 30.09.2022

Comprehensive income

Net profit for the period from 01.01.2022 to 30.09.2022 Distribution of result to supplementary capital

Loss coverage from supplementary capital

Result on hedge accounting with tax effect

Net foreign exchange differences on the translation of financial statements into presentation currency

Comprehensive income recognised in the period from 01.01.2022 to 30.09.2022

-

-

-

-

-

(2 483)

(2 483)

434

(2 049)

-

-

48 293

-

-

(48 293)

-

-

-

-

-

(37 546)

-

-

37 546

-

-

-

-

-

-

-

(4 549)

-

(4 549)

-

(4 549)

-

-

-

-

2 530

-

2 530

-

2 530

-

-

-

10 747

-

(2 019)

(13 230)

(4 502)

434

(4 068)

Transactions with owners recognised directly in equity:

Dividends

Purchase of own shares

Result on sale of shares in an associate entity

Purchase of additional shares of a subsidiary

Redemption of own shares Other changes in capital

Total transactions with owners in the period from 01.01.2022 to 30.09.2022

Balance as at 30.09.2022

-

-

-

-

-

-

(14 553)

(14 553)

-

(14 553)

-

-

(1 950)

-

-

-

-

(1 950)

-

(1 950)

-

-

-

-

-

(2 513)

(1 326)

(3 839)

-

(3 839)

-

-

-

-

-

-

(3 429)

(3 429)

(2 498)

(5 927)

-

(13)

13

-

-

-

-

-

-

-

-

-

-

-

-

-

(15)

(15)

-

(15)

-

(13)

(1 937)

-

-

(2 513)

(19 323)

(23 786)

(2 498)

(26 284)

3 278

(13)

(5 909)

564 207

(86)

(2 848)

(39 572)

519 057

1 866

520 923

Name of the certifying

Apator Group

Period covered by the financial statements:

01.01.2023 - 30.09.2023

Reporting currency:

Polish zloty (PLN)

Rounding level:

all amounts are expressed in thousands of PLN (unless stated otherwise)

Page 10 of 58

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Apator SA published this content on 08 December 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 December 2023 13:19:24 UTC.