Sanok Rubber Spólka Akcyjna : Extended Report for the third quarter of 2022

Consolidated Financial Standing Statement

in thousand PLN

			As at
Specification	Note	30/09/2022	31/12/2021	30/09/2021
		(unaudited)		(unaudited)
Tangible fixed assets	5.1	386 150	389 683	388 347
Investment properties		3 489	3 489	3 489
Goodwill	5.2	297	2 290	7 853
Non-tangible assets other than goodwill	5.2	10 354	6 623	6 853
Long-term receivables		3 407	2 822	2 752
Contract assets		1 998	2 159	2 147
Financial assets	5.3	892	6	6
Deferred income tax assets	5.4	41 037	34 126	27 960
Long-term prepayments		3 442	3 856	4 097
Total fixed assets		451 066	445 054	443 504
Inventory	5.5	268 474	239 178	231 217
Trade receivables	5.6	215 802	152 137	162 762
Other short-term receivables		26 076	12 922	12 415
Income tax receivables		190	3 139	1 958
Contract assets		235	235	235
Prepayments		5 460	3 036	5 851
Financial assets	5.3	1 201	2 432	21 757
Cash		60 332	81 537	99 650
Total current assets		577 770	494 616	535 845
TOTAL ASSETS		1 028 836	939 670	979 349
Share capital		5 376	5 376	5 376
Own Shares		-11 177	0	0
Valuation of warrants (incentive scheme)		6 291	6 291	6 291
Reserve capital for the incentive program		15 000	0	0
Statutory reserve capital		1 792	1 792	1 792
Retained profits		529 081	501 228	506 393
Exchange rate differences		-12 741	-13 171	-13 021
Total equity of the Parent Company		533 622	501 516	506 831
Non-controlling interests		530	511	469
Overall equity of the Parent Company and non-controlling interests		534 152	502 027	507 300
Credits and debt securities		141 250	47 511	112 348
Long-term provisions for employee benefits	5.7	17 568	19 365	21 115
Deferred income		6 436	4 616	4 906
Provision for deferred tax	5.4	223	255	0
Financial liabilities due to leasing		25 447	24 598	22 988
Total long-term liabilities		190 924	96 345	161 357
Credits and debt securities		64 129	145 776	125 422
Trade liabilities		147 385	111 147	103 604
Other financial liabilities		3 096	2 650	1 605
Financial liabilities due to leasing		4 540	3 557	3 014
Other short-term liabilities		21 961	19 522	20 205
Income tax liabilities		416	146	227
Contractual liabilities		8 661	13 052	12 144
Deferred income		659	730	3 524
Short-term provisions for employee benefits	5.8	36 989	24 116	28 826
Other short-term provisions	5.8	15 924	20 602	12 121
Total short-term liabilities		303 760	341 298	310 692
TOTAL LIABILITIES		1 028 836	939 670	979 349
				1

Consolidated Profit and Loss Account

in thousand PLN

	01/07/2022	01/01/2022	01/07/2021	01/01/2021
Specification	30/09/2022	30/09/2022	30/09/2021	30/09/2021
	(unaudited)	(unaudited)	(unaudited)	(unaudited)
Sales revenues	347 234	1 038 417	279 675	883 845
Prime costs of the sale	287 619	853 132	226 163	714 600
Gross profit (loss) on sales	59 615	185 285	53 512	169 245
Selling costs	11 368	32 199	9 791	27 597
General and administrative costs	35 689	96 629	32 844	92 029
Other operating revenues	794	2 220	2 013	7 953
Other operating expenses	424	1 793	3 534	8 375
Result on deconsolidation	-13 830	-13 830
Profit/loss on operating activity	-902	43 054	9 356	49 197

Loss (gain) due to impairment (reversal of losses) on trade and other receivables in accordance with IFRS 9

Financial revenues Financial expenses

Gross profit/loss (before taxation)

Income tax

57		85		-211		-614
2 175	3 521	833		3 335
2 680	6 296	1 944	4 305
-1 350	40 364	8 034	47 613
-2 461	-2 335	1 760	10 831

Net result	1 111	42 699	6 274	36 782
attributable to:
shareholders of the parent company	977	42 381	6 195	36 450
non-controlling shareholders	134	318	79	332
Weighted average number of shares		26 881 922		26 881 922
Earnings per share		1,58		1,36
Diluted weighted average shares		27 509 164		27 509 164
Diluted earnings per share		1,54		1,33

2

Consolidated Cash Flow Statement

in thousand PLN

	Specification		For the period from 01/01 to 30/09
			(unaudited)
			2022		2021
	Net profit			42 699		36 782
	Total adjustments for:			7 910		18 797
	Depreciation		46 250		46 978
	Net foreign exchange rate profit and loss		15 589		1 244
	Net interest and dividends		2 862		2 107
	Income tax on profit before tax		5 089		3 533
	Profit (loss) on investment activities		-13 341		-37
	Change in provisions		6 366		11 291
	Change in inventory		-29 296		-36 132
	Change in receivables		-77 101		-14 750
	Change in liabilities		33 822		2 246
	Change in prepayments and deferred income		-7 172		5 335
	Other adjustments		26 687		1 881
	Income tax paid		-1 845		-4 899
	Net cash flows from operating activity			50 609		55 579
	Inflows from sale of fixed assets and intangible and legal assets		174		162
	Purchase of fixed assets and intangible and legal assets		-67 125		-24 951
	Other investment cash flows		8 583		33 527
	Środki pieniężne netto z działalności inwestycyjnej			-58 368		8 738
	Loans repayment		3 117		-42 793
	Paid interest		-2 862		-2 107
	Acquisition of own shares		-11 177		0
	Financial expenditure on lease		-2 205		-2 987
	Dividends paid to owners		0		-26 882
	Other revenues/expenses		-322		97
	Net cash flows from financing activity			-13 449		-74 672
	Change in cash and cash equivalents		-21 208		-10 355
	Net exchange differences in cash and cash equivalents		3		-2
	Opening balance of cash			81 537		110 007
	Net change in cash		-21 205		-10 357
	Closing balance of cash		60 332		99 650
	including of limited disposability		697		259

3

Financial Standing Statement of SANOK RC SA

	in thousand PLN
		As at
	30.09.2022	31.12.2021	30.09.2021
	(unaudited)		(unaudited)
Tangible fixed assets	311 096	308 269	308 306
Intangible assets	9 309	5 317	5 512
Other long-term accounts receivable	3 408	2 822	2 752
Contract assets	1 998	2 159	2 147
Shares	79 160	98 883	40 841
Financial assets	65 474	61 118	142 927
Deferred income tax assets	33 763	27 232	22 285
Long-term active prepayments and accrued income	599	508	502
Total fixed assets	504 807	506 307	525 272
Stocks	164 064	147 589	144 253
Trade accounts receivable	191 695	132 796	137 438
Other short-term accounts receivable	12 923	9 461	10 255
Contract assets	235	235	235
Active prepayments and accrued income	2 813	1 901	2 735
Financial assets	1 954	14 786	22 503
Cash and cash equivalents	49 909	68 730	82 016
Total current assets	423 593	375 498	399 435
TOTAL ASSETS	928 400	881 805	924 707
Share capital	5 376	5 376	5 376
Own Shares	-11 177	0	0
Reserve funds	1 792	1 792	1 792
Capital from the valuation of warrants	6 291	6 291	6 291
Reserve capital for the Share Buyback Program	15 000	0	0
Retained profit	540 297	534 235	540 893
Total shareholders' equity	557 579	547 694	554 352
Credits	135 740	35 635	101 981
Financial liabilities	12 478	11 863	13 342
Provisions	20 768	19 985	20 335
Income from future periods	33	34	34
Total long-term liabilities	169 019	67 517	135 692
Credits and debt securities	45 306	131 079	113 596
Trade liabilities	95 222	77 832	72 141
Financial liabilities	6 507	4 759	3 641
Other short-term liabilities	9 279	12 046	9 408
Income tax liabilities	0	1	1
Liabilities related to the contract	3 120	3 691	3 393
Income from future periods	1 067	389	167
Provisions	41 301	36 796	32 316
Total short-term liabilities	201 802	266 594	234 663
TOTAL LIABILITIES	928 400	881 805	924 707

4

Profit and Loss Account of SANOK RC SA

in thousand PLN

		01.07.2022		01.01.2022	01.07.2021		01.01.2021
		30.09.2022		30.09.2022	30.09.2021		30.09.2021
		(unaudited)		(unaudited)	(unaudited)		(unaudited)
	Sales revenue	238 682	720 761	189 568	608 953
	Cost of sales	204 312		610 270	156 026	499 146
	Gross profit on sales	34 370		110 491	33 542		109 807
	Selling cost	3 790	11 120	3 790	10 184
	General and administrative expenses	20 146	54 341	18 411	49 493
	Core business result	10 435		45 030	11 341		50 130
	Other operating income	294		1 279	1 214	5 314
	Other operating expenses	322		1 449	142		759
	Operating result	10 407		44 860	12 413		54 685
	Losses on write-downs (+) / gains on reversals of write-downs	-700		-3 976	106		-272
	under IFRS 9 (-)
	Interest income	1 740	4 295	1 612	4 746
	Financial income	28 549	31 260	586		4 381
	Financial expenses	30 728	65 277	2 139	4 764
	Pre-tax profit	10 667		19 114	12 366		59 320
	Income tax	-2 568	-3 131	1 826	10 590
	current	1 051	3 122	233		1 890
	deferred	-1 869	-1 602	1 251		372
	deferred (activities in Polish Investment Zone)	-1 750		-4 651	342		8 328
	Net profit	13 235	22 245	10 540	48 730
	Weighted-average number of shares			26 881 922			26 881 922
	Earnings per share			0,83			1,81
	Weighted-average diluted number of shares			27 509 164			27509164
	Diluted earnings per share			0,81			1,77

5