Asseco South Eastern Europe S A : Consolidated Quarterly Report for the 1st Quarter of 2023

Present in

PLN 380.1 million

23 countries

in sales revenues

3,933

PLN 45.5 million

highly committed

of net profit

employees

for Shareholders

of the Parent Company

Quarterly Report of Asseco South Eastern Europe Group

for the period of 3 months ended 31 March 2023

FINANCIAL HIGHLIGHTS

5

INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME

6

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

7

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

9

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

12

EXPLANATORY NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

13

I. GENERAL INFORMATION

13

II. BASIS FOR THE PREPARATION OF INTERIM CONDENSED FINANCIAL STATEMENTS

14

2.1.

Basis for preparation

14

2.2.

Compliance statement

15

2.3.

Functional currency and presentation currency

15

2.4.

Professional judgement and estimates

15

2.5.

Accounting policies applied

15

2.6.

New standards and interpretations published but not in force yet

15

2.7.

Changes in the presentation methods and in the comparable data

16

2.8.

Correction of errors

18

2.9.

Accounting effects of Turkey's status as a hyperinflationary economy

18

III. ORGANIZATION AND CHANGES IN THE STRUCTURE OF ASSECO SOUTH EASTERN EUROPE GROUP,

INCLUDING THE ENTITIES SUBJECT TO CONSOLIDATION

23

IV. INFORMATION ON OPERATING SEGMENTS

25

V. EXPLANATORY NOTES TO THE CONSOLIDATED STATEMENT OF PROFIT AND LOSS

28

5.1.

Structure of operating revenues

28

5.2.

Structure of operating costs

30

5.3.

Other operating income and expenses

31

5.4.

Financial income and expenses

32

5.5.

Corporate income tax

33

5.6.

Earnings per share

33

5.7.

Information on dividends paid out

33

VI. EXPLANATORY NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

34

6.1.

Property, plant and equipment

34

6.2.

Intangible assets

34

6.3.

Right-of-use assets

35

6.4.

Goodwill

35

6.5.

Other financial assets

36

6.6.

Prepayments and accrued income

38

6.7.

Receivables and contract assets

38

6.8.

Inventories

39

6.9.

Cash and cash equivalents

40

6.10.

Lease liabilities

40

6.11.

Bank loans and borrowings

41

6.12.

Other financial liabilities

42

6.13.

Trade payables, state budget liabilities and other liabilities

44

6.14.

Contract liabilities

44

6.15.

Provisions

45

6.16.

Accruals and deferred income

45

6.17.

Related party transactions

45

VII. EXPLANATORY NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS

47

7.1.

Cash flows - operating activities

47

7.2.

Cash flows - investing activities

47

7.3.

Cash flows - financing activities

47

VIII. OTHER EXPLANATORY NOTES

49

8.1.

Off-balance-sheet liabilities

49

8.2. Seasonal and cyclical business

49

8.3.

Employment

50

8.4. Significant events after the reporting period

50

8.5. Significant events related to prior years

50

SUMMARY AND ANALYSIS OF THE FINANCIAL RESULTS OF ASSECO SOUTH EASTERN EUROPE GROUP

FOR THE PERIOD OF 3 MONTHS ENDED 31 MARCH 2022

51

OF 2023

52

II. ANALYSIS OF FINANCIAL RATIOS

54

III. STRUCTURE OF THE STATEMENT OF CASH FLOWS

55

IV. INFORMATION ON GEOGRAPHICAL STRUCTURE OF FINANCIAL RESULTS

56

V. NON-RECURRING EVENTS WITH IMPACT ON OUR FINANCIAL PERFORMANCE

57

VI. GOVERNING BODIES OF ASSECO SOUTH EASTERN EUROPE S.A

58

VII. SHAREHOLDERS STRUCTURE OF ASSECO SOUTH EASTERN EUROPE S.A

58

VIII. OTHER INFORMATION

59

8.1. Issuance, redemption and repayment of non-equity and equity securities

59

8.2. Changes in the organizational structure of the Issuer's Group

59

8.3. Information on significant judicial proceedings

59

8.4. Related party transactions

59

8.5. Bank loans, borrowings, sureties, guarantees and off-balance-sheet liabilities

59

8.6. Changes in the Group management policies

59

8.7. Agreements concluded by the Group and Company with its management personnel providing for payment of

compensations if such persons resign or are dismissed from their positions

59

by the existing shareholders and bondholders

60

8.9.

Opinion on feasibility of the Management's financial forecasts for 2023

60

8.10.

Information on monitoring of employee stock option plans

60

8.11.

Factors which in the Management's opinion will affect the Group's financial performance at least in the next quarter...

60

8.12.

Other factors significant for the assessment of human resources, assets and financial position

60

INTERIM CONDENSED FINANCIAL STATEMENTS OF ASSECO SOUTH EASTERN EUROPE S.A. FOR THE

PERIOD OF 3 MONTHS ENDED 31 MARCH 2023

61

FINANCIAL HIGHLIGHTS

62

INTERIM CONDENSED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME

63

INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION

64

INTERIM CONDENSED STATEMENT OF CHANGES IN EQUITY

66

INTERIM CONDENSED STATEMENT OF CASH FLOWS ASSECO SOUTH EASTERN EUROPE S.A

67

3 months ended

3 months ended

3 months ended

3 months ended

31 March 2023

31 March 2022

31 March 2023

31 March 2022

PLN'000

PLN'000

EUR'000

EUR'000

Sales revenues

380,064

311,665

80,857

67,065

Operating profit

50,220

45,924

10,684

9,882

Pre-tax profit

57,813

49,387

12,299

10,627

Net profit for the reporting period

47,201

39,717

10,042

8,546

Net profit attributable to Shareholders of the Parent

45,513

38,448

9,683

8,273

Company

Net cash provided by (used in) operating activities

43,615

32,368

9,279

6,965

Net cash provided by (used in) investing activities

(16,372)

(13,509)

(3,483)

(2,907)

Net cash provided by (used in) financing activities

(10,380)

665

(2,208)

143

Cash and cash equivalents at the end of the period

306,031

298,034

65,454

63,548

(comparable data as at 31 December 2022)

Basic earnings per ordinary share for the reporting

period attributable to Shareholders of the Parent

0.88

0.74

0.19

0.16

Company (in PLN/EUR)

Diluted earnings per ordinary share for the reporting

period attributable to Shareholders of the Parent

0.88

0.74

0.19

0.16

Company (in PLN/EUR)