Apator S A : Consolidated report for three quarters of 2022

Financial report

Consolidated quarterly report of the Apator Group for Q3 2022

Toruń, November 17, 2022 r.

Consolidated quarterly report of the Apator Group for Q3 2022

Selected financial data, including basic items of the consolidated financial statements (also converted into EUR)

		in PLN thousand		in EUR thousand
		current		previous		current period		previous
	SPECIFICATION	period		period			period
		I-III quarter		I-III quarter		I-III quarter		I-III quarter
		2022	2021	2022	2021
	Revenues from sales of products, goods and materials	776 426		702 052		165 619		154 009
	Operating income	19 749	89 569	4 213	19 649
	EBITDA	61 632		131 036		13 147		28 745
	EBITDA excluding one-time events*	72 541	96 957	15 474	21 269
	Gross profit (loss)	2 684		83 669		573		18 355
	Net profit (loss)	-2 049	64 231	-437	14 090
	Net profit (loss) excluding one-time events*	8 860		36 627		1 890		6 614
	Net profit (loss) attributable to shareholders of the Group's	-2 483	63 186	-530	13 861
	parent company
	Net profit (loss) for non-controlling interest	434		1 045		93		229
	Weighted average number of shares	29 078 474	29 180 911	29 078 474	29 180 911
	Net profit (loss) per one ordinary share [PLN/ share]	-0,09		2,17		-0,02		0,48
	Cash flows from operating activities	-4 388	5 080	-936	1 114
	Net cash flow from investment activities	(39 145)		(35 192)		(8 350)		(7 720)
	Cash flows from financial activities	26 421	38 320	5 636	8 406
	Total cash flows	(17 112)		8 208		(3 650)		1 800
	SPECIFICATION	30.09.2022		year 2021	30.09.2022		year 2021
	Assets in total	1 055 300		999 260		216 703		217 259
	Fixed assets	550 638	532 118	113 072	115 925
	Current assets	504 662		467 142		103 631		101 334
	Equity capital with non-controlling interests	520 704	551 275	106 925	119 858
	Non-controlling interests	1 647		3 930		338		854
	Share capital	3 278	3 278	673	713
	Long-term liabilities and provisions	86 100		71 501		17 680		15 546
	Short-term liabilities and provisions	448 496	376 484	92 097	81 855
	Weighted average number of shares	29 078 474		29 178 619		29 078 474		29 178 619
	Net book value per common share [per share]	17,91		18,89		3,68		4,11

*) results adjusted for the impact of the sale of the property of Apator Powogaz in 1Q 2021 and the impact of the GWi write-down in 3Q 2022

The above financial data for the first 9 months of 2021 and 2022 have been recalculated to EUR according to the following rules:

• individual items of the statement of comprehensive income and of the cash flow statement - according to the exchange rate constituting the arithmetic mean of the average EUR exchange rates determined by the National Bank of Poland as at the last day of each month of the reporting period: from 1 January to 30 September 2022 - 4.6880 EUR/PLN and from 1 January to 30 September 2021 - 4.5585 EUR/PLN;
• individual items of the statement of financial position - at the average EUR exchange rate set by the National Bank of Poland as at 30 September 2022 - 4.8698, as at 31 December 2021 - 4.5994.

Entity name:		Apator Group
Period covered by the financial statements:	01.01.2022 - 30.09.2022	Reporting currency:	Polish zloty (PLN)
Level of rounding:	all amounts are expressed in thousands of Polish zlotys (unless indicated otherwise)

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Consolidated quarterly report of the Apator Group for Q3 2022

Table of contents
Selected financial data, including basic items of the consolidated financial statements (also converted into
	EUR) .........................................................................................................................................................	2
1.	Consolidated financial statements............................................................................................................	4
2.	General information ................................................................................................................................	18
3.	Summary of financial results ..................................................................................................................	20
4.	Indication of factors that will affect the future results of the Apator Group.............................................	32
5.	List of major events ................................................................................................................................	36
6.	Additional information .............................................................................................................................	38

7. Information about the rules adopted at the preparation of the report, in particular, information on

	changes in applied accounting principles (policy) ..................................................................................	49
8.	Attachment: Individual statement of Apator S.A.* ..................................................................................	54

Entity name:		Apator Group
Period covered by the financial statements:	01.01.2022 - 30.09.2022	Reporting currency:	Polish zloty (PLN)
Level of rounding:	all amounts are expressed in thousands of Polish zlotys (unless indicated otherwise)

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Consolidated quarterly report of the Apator Group for Q3 2022

1. Consolidated financial statements

The consolidated and separate financial statements for the third quarter of 2022 have been prepared in accordance with the 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 March 29, 2018 on current and periodic information provided by issuers of securities and conditions for recognizing as equivalent information required by the laws of a non-member state (Journal of Laws 2018, item 757).

Interim financial statements (consolidated and parent company) for the third quarter ended September 30, 2022 were prepared in accordance with IAS 34 (Interim Financial Reporting). Interim financial statements do not include all the information and disclosures required in annual financial statements and should be read in conjunction with the Group's annual financial statements as of 31st December 2021.

1.1. Consolidated statement of financial position

		SPECIFICATION		as of
30.09.2022				31.12.2021
	Fixed assets	550 638				532 118
		Intangible assets		105 976				111 294
		Goodwill of the company	126 894				125 777
		Tangible fixed assets		230 310				220 946
		Right to use assets	47 903			34 099
		Investment property		1 883				1 733
		Investments in associates consolidated using the equity method	234				2 242
		Other long-term financial assets		-				247
		- in other entities	-			247
		Long-term receivables		5 231				4 429
		- from other entities	5 231			4 429
		Long-term accruals and prepayments		456				96
		Assets by virtue of deferred income tax	31 751			31 255
	Current assets		504 662				467 142
		Stocks	272 415				238 934
		Contractual asset		406				1 626
		Commercial receivables	181 468				145 998
		- from related entities		-				4 657
		- from other entities	181 468				141 341
		Receivables from corporate income tax		4 026				1 367
		Receivables from other taxes, customs duties and social security	12 397			9 759
		Other short-term liabilities		7 959				25 901
		- from other entities	7 959			25 901
		Other short-term financial assets		-				226
		- in other entities	-			226
		Cash and cash equivalents		19 720				36 832
		Cash and cash equivalents with limited disposability	-			556
		Short-term interim settlements		6 271				5 920
		Non-current assets classified as held for sale	-			23
	TOTAL ASSETS		1 055 300				999 260

Entity name:		Apator Group
Period covered by the financial statements:	01.01.2022 - 30.09.2022	Reporting currency:	Polish zloty (PLN)
Level of rounding:	all amounts are expressed in thousands of Polish zlotys (unless indicated otherwise)

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Consolidated quarterly report of the Apator Group for Q3 2022

		SPECIFICATION			as of
30.09.2022				31.12.2021
	Equity capital	520 704				551 275
	Equity capital attributable to equity holders of the parent company				519 057				547 345
		Share capital	3 278			3 278
		Unregistered reduction of share capital				(13)				-
		Own shares	(5 909)				(3 972)
		Other capitals				564 207				553 460
		Capital from the revaluation of a defined benefit plan	(86)				(86)
		Capital from valuation of hedging transactions and foreign exchange differences from				(2 848)				1 684
		consolidation
		Undistributed financial result	(39 572)			(7 019)
		- undistributed result from previous years				(37 089)				(69 220)
		- result of the current period	(2 483)			62 201
	Non-controlling interest				1 647				3 930
	Liabilities	534 596				447 985
	Long-term liabilities and provisions				86 100				71 501
		Long-term loans and borrowings	40 131			35 980
		- from other entities				40 131				35 980
		Other long-term liabilities	1 464			3 518
		- towards other entities				1 464				3 518
		Long-term liabilities due to the right to use assets under lease (IFRS 16)	33 716			19 642
		Deferred income tax provision				3 123				4 432
		Long-term liabilities arising from employee benefits	7 227			7 227
		Other long-term provisions				439				702
	Short-term liabilities and provisions	448 496				376 484
		Short-term loans and borrowings				235 541				175 448
		- from other entities	235 541			175 448
		Commercial liabilities				117 771				95 974
		- towards affiliated entities	1 112				611
		- towards other entities				116 659				95 363
		Contractual liabilities	243				976
		Corporate income tax liabilities				888				12 589
		Liabilities due to other taxes, customs duties and social security	16 121			14 646
		Other short-term liabilities				41 358				38 519
		- towards other entities	41 358				38 519
		Short-term liabilities due to the right to use assets under lease (IFRS 16)				9 675				8 974
		Short-term liabilities arising from employee benefits	13 829			17 608
		Other short-term provisions				13 070				11 727
		Liabilities related to fixed assets classified as held for sale	-			23
	LIABILITIES TOTAL				1 055 300				999 260

Entity name:		Apator Group
Period covered by the financial statements:	01.01.2022 - 30.09.2022	Reporting currency:	Polish zloty (PLN)
Level of rounding:	all amounts are expressed in thousands of Polish zlotys (unless indicated otherwise)

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