Apator S A : Annual report for 2022 - Apator SA

R-2022

Financial report

Annual separate financial statements

R-2022

Table of contents

Table of contents	2
1. General information	4
1.1. Information about the entity	4
1.2.	Core business activity of the entity:	4
1.3.	Members of the Management Board and the Supervisory Board	4

2. Information about the basis for the preparation of the financial statements, the reporting currency and

the rounding level applied	4
2.1.	Basis for the preparation of the separate financial statements	4
2.2.	Accounting principles	5
2.3.	Applied International Financial Accounting Standards	5
2.4.	Reporting and functional currency and the rounding level applied	6
2.5.	Duration of the activity of the entity	6
2.6.	Approval of the financial statements	6
3. Annual separate financial statements of Apator S.A	7
3.1.	Separate statement of financial position	7
3.2.	Separate statement of profit or loss and other comprehensive income	9
3.3.	Separate statement of changes in equity	10
3.4.	Separate statement of cash flows	12
4. Accounting principles applied	13
4.1.	Basis for preparation (general principles)	13
4.2.	Detailed principles for the valuation of assets and liabilities	13
4.2.1. Intangible assets	13
4.2.2. Tangible fixed assets	14
4.2.3. Investments in subsidiaries and associates	14
4.2.4. Leases	15
4.2.5. Investment properties	16
4.2.6. Inventory	16
4.2.7. Borrowing costs	17
4.2.8. Financial instruments	17
4.2.9. Provisions	20
4.2.10.	Employee benefits	20
4.2.11.	Revenue	21
4.2.12.	Costs	22
4.2.13.	Transactions in foreign currencies	22
4.2.14.	Taxes	22
4.2.15.	Grants	23
4.2.16. Zone tax credit resulting from doing business in a Special Economic Zone	23
4.2.17.	Equity	24
4.3. Combinations under common control	24
5. Basic judgements and basis for uncertainty estimation	24
6. Information on seasonality of operations	25
7. Explanatory notes to the separate financial statements	25

Entity name:	Apator S.A.		Page 2
Period covered by the financial statements:	1 January 2022 - 31 December	Reporting currency:	polish zloty (PLN)
2022
Rounding level:	all amounts are expressed in thousands of PLN (unless stated otherwise)

		Annual separate financial statements
			R-2022
	7.1.	Operating segments	25
	7.2.	Merger of Apator S.A. with Apator Elkomtech S.A	26
	7.3.	Intangible assets	26
	7.4.	Tangible fixed assets	28
	7.5.	Fixed assets classified as held for sale	30
	7.6.	Right to use assets, lease liabilities	30
	7.7.	Investment properties	32
	7.8.	Other financial assets	33
	7.9.	Inventory	35
	7.10.	Trade receivables and other receivables	35
	7.11.	Cash and cash equivalents	36
	7.12.	Accruals and prepayments	37
	7.13.	Share capital	37
	7.14.	Other capitals	38
	7.15.	Undistributed financial result	39
	7.16.	Credits and loans	39
	7.17.	Provisions for liabilities	41
	7.18.	Liabilities	42
	7.19. Income tax	43
	7.20. Costs by type	44
	7.21. Revenue	44
	7.22. Other operating revenues and expenses	45
	7.23. Financial revenues and expenses	46
	7.24. Explanations regarding the cash flow statement	46
	7.25. Financial instruments	49
	7.26. Derivative financial instruments, hedge accounting	51
	7.27. Objectives and principles of risk management	52
	7.28. Information about related entities	58
	7.29. Contingent items and other items not included in the statement of financial position	61
	7.30. Employment structure	62
	7.31. Amount of remuneration for the entity authorised to audit the financial statements	62
8. Impact of the environment on the financial position of Apator S.A	62
9.	Events after the balance sheet date	63
10.	Signatures	64

Entity name:	Apator S.A.		Page 3
Period covered by the financial statements:	1 January 2022 - 31 December	Reporting currency:	polish zloty (PLN)
2022
Rounding level:	all amounts are expressed in thousands of PLN (unless stated otherwise)

Annual separate financial statements

R-2022

1. General information

1.1. Information about the entity

The Company Apator Spółka Akcyjna (Apator S.A.) with its headquarters in Toruń (ul. Gdańska 4a lok C4) was created by employees of a liquidated state enterprise operating under the name of Pomorskie Zakłady Aparatury Elektrycznej Apator in Toruń. Registration in the District Court in Toruń, 5th Commercial Division, took place on 14 January 1993 under number RHB 1364. On 24 October 2001, an entry was made in the Register of Entrepreneurs of the District Court in Toruń, 6th Commercial Division of the National Court Register, under number 0000056456. The Company operates in the territory of Poland under the provisions of the Commercial Companies Code.

1.2. Core business activity of the entity:

In accordance with the Company's Statute, the core business activity is production and service activity in the field of electricity distribution and control apparatus and the sale of measurement apparatus and systems. Shares of Apator S.A. are listed on the main market of the Warsaw Stock Exchange, sector according to WSE classification - electromechanical industry.

1.3. Members of the Management Board and the Supervisory Board

Management Board

Arkadiusz Chmielewski - President of the Management Board (until 28 February 2023) Maciej Wyczesany - President of the Management Board (since 1 March 2023) Tomasz Łątka - Member of the Management Board

Supervisory Board

Janusz Niedźwiecki - Chairman of the Supervisory Board

Mariusz Lewicki - Deputy Chairman of the Supervisory Board

Janusz Marzygliński - Member of the Supervisory Board

Danuta Guzowska - Member of the Supervisory Board

Marcin Murawski - Member of the Supervisory Board

Kazimierz Piotrowski - Member of the Supervisory Board

Tadeusz Sosgórnik - Member of the Supervisory Board

2. Information about the basis for the preparation of the financial statements, the reporting currency and the rounding level applied

2.1. Basis for the preparation of the separate financial statements

These annual separate financial statements of Apator S.A. as at and for the year ending 31 December 2022 have been prepared in accordance with International Accounting Standards, International Financial Reporting Standards and related interpretations announced in the form of regulations of the European Commission.

The annual separate financial statements of Apator S.A. cover the year 2022 and include comparative data for 2021.

Entity name:	Apator S.A.		Page 4
Period covered by the financial statements:	1 January 2022 - 31 December	Reporting currency:	polish zloty (PLN)
2022
Rounding level:	all amounts are expressed in thousands of PLN (unless stated otherwise)

Annual separate financial statements

R-2022

2.2. Accounting principles

In preparing the annual separate financial statements for the period from 1 January 2022 to 31 December 2022, the same accounting principles (policies) and calculation methods were applied as in the most recent separate financial statements for the year ended 31 December 2021.

2.3. Applied International Financial Accounting Standards

CHANGES IN INTERNATIONAL FINANCIAL ACCOUNTING STANDARDS AND THEIR IMPACT ON THE SEPARATE FINANCIAL STATEMENTS

Standards that came into effect on 1 January 2022 but do not have a material impact in the preparation of the Company's annual financial statements are:

• Amendments to IFRS 3 (Business combinations),
• IAS 16 (Property, Plant and Equipment),
• IAS 37 (Provisions, Contingent Liabilities and Contingent Assets),
• Annual Improvements to IFRSs 2018 - 2022 (Amends standards: IFRS 1 "First-time Adoption of International Financial Reporting Standards", IFRS 9 "Financial Instruments", IAS 41 "Agriculture" and to the Illustrative Examples to IFRS 16 "Leases"; The amendments provide explanations and clarify the standards' guidance on recognition and measurement).

STANDARDS PUBLISHED BY THE INTERNATIONAL ACCOUNTING STANDARDS COMMITTEE, WHICH ARE NOT YET IN FORCE AND HAVE NOT BEEN ALREADY APPLIED BY THE COMPANY

The Company has not elected to apply standards, interpretations or amendments that are not yet in force in these annual separate financial statements.

The following new Standards, amendments to Standards and Interpretations have not been adopted by the EU or are not yet in force for periods ending 31 December 2022 and have not been applied in the annual separate financial statements:

• IFRS 17 "Insurance Contracts" and amendments to IFRS 17,
• Amendments to IAS 1 "Presentation of Financial Statements" (introducing the requirement to disclose material information on accounting policies),
• Amendments to IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors",
• Amendments to IAS 12 "Income Taxes",
• Amendments to IFRS 16 "Leases",
• Amendments to IAS 1 "Presentation of Financial Statements" (presentation of liabilities as long-term and short-term)
• IFRS 14 "Regulatory accruals",
• Amendments to IFRS 10 and IAS 28 concerning the sale or contribution of assets between an investor and its associates or joint venture.

The Company assesses that the introduction of the above standards will not have a material impact on the Company.

Entity name:	Apator S.A.		Page 5
Period covered by the financial statements:	1 January 2022 - 31 December	Reporting currency:	polish zloty (PLN)
2022
Rounding level:	all amounts are expressed in thousands of PLN (unless stated otherwise)