Asseco South Eastern Europe S A : Semi annual report of the Asseco Group SEE 2023

Present in

PLN 755.6 million

23 countries

in sales revenues

3,789

PLN 92.5 million

highly committed

of net profit

employees

for Shareholders

of the Parent Company

Semi-Annual Report of Asseco South Eastern Europe Group

for the period of 6 months ended 30 June 2023

FINANCIAL HIGHLIGHTS

6

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

7

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

8

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

10

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

13

EXPLANATORY NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

14

I. GENERAL INFORMATION

14

II. BASIS FOR THE PREPARATION OF FINANCIAL STATEMENTS

15

2.1.

Basis for preparation

15

2.2.

Compliance statement

15

2.3.

Functional currency, presentation currency and hyperinflation

16

2.4.

Professional judgement and estimates

16

2.5.

Accounting policies applied

16

2.6.

New standards and interpretations published but not in force yet

17

2.7.

Changes in the presentation methods applied

17

2.8.

Correction of errors

17

2.9.

Changes in the comparable data

17

2.10.

Accounting effects of Turkey's status as a hyperinflationary economy

21

INCLUDING THE ENTITIES SUBJECT TO CONSOLIDATION

26

IV. INFORMATION ON OPERATING SEGMENTS

28

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

31

5.1.

Structure of operating revenues

31

5.2.

Structure of operating costs

33

5.3.

Other operating income and expenses

34

5.4.

Financial income and expenses

34

5.5.

Corporate income tax

35

5.6.

Earnings per share

36

5.7.

Information on dividends paid out

36

VI. EXPLANATORY NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

37

6.1.

Property, plant and equipment

37

6.2.

Intangible assets

37

6.3.

Right-of-use assets

38

6.4.

Goodwill

38

6.5.

Impairment tests

40

6.6.

Other financial assets

40

6.7.

Prepayments and accrued income

42

6.8.

Receivables and contract assets

42

6.9.

Inventories

43

6.10.

Cash and cash equivalents

44

6.11.

Lease liabilities

44

6.12.

Bank loans and borrowings

44

6.13.

Other financial liabilities

46

6.14.

Trade payables, state budget liabilities, and other liabilities

47

6.15.

Provisions

48

6.16.

Accruals and deferred income

48

6.17.

Related party transactions

48

Asseco South Eastern Europe Group

Interim Condensed Consolidated Financial Statements for the period of 6 months ended 30 June 2023 (in thousands of PLN)

3

VII. EXPLANATORY NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS

..................................................51

7.1. Cash flows - operating activities

51

7.2. Cash flows - investing activities

51

7.3. Cash flows - financing activities

51

VIII. OTHER EXPLANATORY NOTES

53

8.1. Off-balance-sheet liabilities

53

8.2. Seasonal and cyclical business

53

8.3. Employment

54

8.4. Significant events after the reporting period

54

8.5. Significant events related to prior years

54

INTERIMCONDENSEDFINANCIALSTATEMENTS OFASSECOSOUTHEASTERNEUROPES.A.

FOR THE PERIOD OF6MONTHS ENDED30 JUNE2023

55

APPROVAL FOR PUBLICATION BY THE MANAGEMENT BOARD

87

Asseco South Eastern Europe Group

Interim Condensed Consolidated Financial Statements for the period of 6 months ended 30 June 2023 (in thousands of PLN)

4