Apator S A : Consolidated quarterly report of the Apator Group for the 3Q of 2021

Financial report

Consolidated quarterly statement of the Apator Group for 3 quarters in 2021.

Torun, 17th November 2021

Consolidated quarterly statement of the Apator Group for 3 quarters in 2021.

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

		in PLN thousand	in EUR thousand
	SPECIFICATION
	current	previous	current	previous
		period	period	period	period
	Consolidated statement	I-III quarter	I-III quarter	I-III quarter	I-III quarter
	2021		2020		2021		2020
	Revenue from sales and services	702 052		706 070		154 010		158 952
Operating income	89 569	60 174		19 649	13 546
	EBITDA	131 036		99 663		28 745		22 436
EBITDA excluding real estate*	96 957	99 663		21 270	22 436
	Gross profit	83 669		64 633		18 355		14 550
Net profit	64 231	49 328		14 090	11 105
	Net profit without real estate*	36 627		49 328		8 035		11 105
Net profit attributable to shareholders of the Group's parent	63 186	47 911		13 861	10 786
company
	Net profit attributable to non-controlling interest	1 045		1 417		229		319
Weighted average number of shares	29 180 911	29 207 709		29 180 911	29 207 709
	Net profit per one ordinary share [PLN/ share]	2.17		1.64		0.48		0.37
Cash flows from operating activities	5 080	70 949		1 097	15 673
	Net cash flow from investment activities	(35 192)		(38 206)		(7 596)		(8 440)
Cash flows from financial activities	38 320	(29 243)		8 271	(6 460)
	Total cash flows	8 208		3 500		1 772		773
	Consolidated statement	30.09.2021	year 2020	30.09.2021	year 2020
	Assets in total	992 103		874 949		214 143		189 597
Fixed assets	513 795	496 611		110 901	107 613
	Current assets	478 308		378 338		103 242		81 984
Equity capital with non-controlling interests	550 918	517 241		118 914	112 083
	Non-controlling interests	3 840		7 485		829		1 622
Share capital	3 281	3 281		708	711
	Long-term liabilities and provisions	63 532		46 553		13 713		10 088
Short-term liabilities and provisions	377 653	311 155		81 515	67 425
	Weighted average number of shares	29 180 911		29 204 907		29 180 911		29 204 907
Net book value per ordinary share [PLN/ share].	18.88	17.71		4.08	3.84

*) results cleared of the influence of sale of real estate of Apator Powogaz SA

The above financial figures for the 9 months of 2021 and 2020 have been translated into EUR as follows:

• individual items of the statement of comprehensive income - according to the exchange rate being the arithmetic average of average EUR exchange rates determined by the National Bank of Poland on the last day of each month of the reporting period: from 1 January to 30 September 2021 - 4.5585 EUR/PLN and from 1 January to 30 September 2020 - 4.4420 EUR/PLN;
• individual items of the cash flow statement - according to the average EUR exchange rate set by the National Bank of Poland as at September 30, 2021 - 4.6329, as at September 30, 2020 - 4.5268;
• individual items of the statement of financial position - at the average EUR exchange rate set by the National Bank of Poland as at September 30, 2021 - 4.6329, as at December 31, 2020 - 4.6148;

Entity name:		Apator Group
Period covered by the financial statements:	01.01.2021 - 30.09.2021	Reporting currency:	Polish zloty (PLN)
Level of rounding:	all amounts are expressed in thousands of Polish zlotys (unless indicated otherwise)

Consolidated quarterly statement of the Apator Group for 3 quarters in 2021.

Table of contents
Selected financial data, including basic items of the condensed financial statements (also converted into EUR)	............ 2
1.	Consolidated financial statements ..........................................................................................................................	4
2.	General information ..............................................................................................................................................	19
3.	Summary of financial results .................................................................................................................................	21
4.	Indication of factors that will affect the future results of the Apator Group ........................................................	30
5.	List of major events ...............................................................................................................................................	32
6.	Additional information ..........................................................................................................................................	34

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

	applied accounting principles (policy) ...................................................................................................................	44
8.	Attachment: Individual statement of Apator SA ...................................................................................................	49

Entity name:		Apator Group
Period covered by the financial statements:	01.01.2021 - 30.09.2021	Reporting currency:	Polish zloty (PLN)
Level of rounding:	all amounts are expressed in thousands of Polish zlotys (unless indicated otherwise)

Consolidated quarterly statement of the Apator Group for 3 quarters in 2021.

1. Consolidated financial statements

The consolidated and separate financial statements for the three quarters of 2021 have been prepared in accordance with the International Accounting Standards (IAS / IFRS) and related interpretations promulgated in the form of regulations of the European Commission and the Regulation of the Minister of Finance of 29 March 2018 on current and periodic information provided by issuers of securities and the conditions for recognizing as equivalent the information required by the laws of a non-member state (Journal of Laws 2018, item 757).

The interim financial report (consolidated and separate financial statements of the parent company) for the third quarter ended on 30 September 2021 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 2020.

1.1. Consolidated statement of the financial position

		SPECIFICATION	as of
30.09.2021			31.12.2020
Fixed assets	513 795		496 611
		Intangible assets	108 662			103 038
	Goodwill of subsidiaries	125 828		125 546
		Tangible fixed assets	204 474			187 895
	Right to use assets	34 299		38 587
		Contractual asset	406			1 625
	Investment property	1 458		1 441
		Investments in associates consolidated using the equity method	2 094			2 048
	Long-term receivables	4 792		5 777
		- from other entities	4 792			5 777
	Long-term accruals and prepayments	120		78
		Assets by virtue of deferred income tax	31 662			30 576
Current assets	478 308		378 338
		Stocks	237 523			155 074
	Contractual asset	1 626		1 626
		Commercial receivables	160 933			147 374
		- from related entities	2 739		4 219
		- from other entities	158 194			143 155
	Receivables from corporate income tax	367		4 518
		Receivables from other taxes, customs duties and social security	7 569			7 299
	Other short-term liabilities	25 670		4 748
		- from other entities	25 670			4 748
	Other short-term financial assets	524		69
		- in other entities	524			69
	Cash and cash equivalents	37 459		29 251
		Cash and cash equivalents with limited disposability	485			779
	Short-term interim settlements	6 152		4 399
		Non-current assets classified as held for sale	-			23 201
TOTAL ASSETS	992 103		874 949

Entity name:		Apator Group
Period covered by the financial statements:	01.01.2021 - 30.09.2021	Reporting currency:	Polish zloty (PLN)
Level of rounding:	all amounts are expressed in thousands of Polish zlotys (unless indicated otherwise)

Consolidated quarterly statement of the Apator Group for 3 quarters in 2021.

		SPECIFICATION		as of
30.09.2021			31.12.2020
Equity capital	550 918		517 241
Equity capital attributable to equity holders of the parent company			547 078			509 756
	Share capital	3 281		3 281
		Unregistered reduction of share capital			(3)			-
	Own shares	(4 181)		(3 823)
		Other capitals			553 784			521 858
	Capital from the revaluation of a defined benefit plan	(253)			(253)
		Capital from valuation of hedging transactions and foreign exchange differences from			483			(4 022)
		consolidation
	Undistributed financial result	(6 033)		(7 285)
		- undistributed result from previous years			(69 219)			(54 383)
		- result of the current period	63 186		60 234
		- write-offs from the current year's result			-			(13 136)
Non-controlling interest	3 840		7 485
Liabilities			441 185			357 708
Long-term liabilities and provisions	63 532		46 553
		Long-term loans and borrowings			28 127			4 183
		- from other entities	28 127		4 183
		Other long-term liabilities			845			1 869
		- towards other entities	845		1 869
		Contractual liabilities			243			976
	Long-term liabilities due to the right to use assets under lease (IFRS 16)	20 160		22 690
		Deferred income tax provision			4 860			7 484
	Long-term liabilities arising from employee benefits	8 354		8 354
		Other long-term provisions			943			997
Short-term liabilities and provisions	377 653		311 155
		Short-term loans and borrowings			173 411			125 218
		- from other entities	173 411		125 218
		Commercial liabilities			96 937			74 006
		- towards affiliated entities	497		142
		- towards other entities			96 440			73 864
	Contractual liabilities	977		977
		Corporate income tax liabilities			12 843			5 392
	Liabilities due to other taxes, customs duties and social security	14 337		15 910
		Other short-term liabilities			39 752			46 359
		- towards other entities	39 752		46 359
		Short-term liabilities due to the right to use assets under lease (IFRS 16)			9 113			10 133
	Short-term liabilities arising from employee benefits	18 299		17 195
		Other short-term provisions			11 984			15 965
LIABILITIES TOTAL	992 103		874 949

Entity name:		Apator Group
Period covered by the financial statements:	01.01.2021 - 30.09.2021	Reporting currency:	Polish zloty (PLN)
Level of rounding:	all amounts are expressed in thousands of Polish zlotys (unless indicated otherwise)