PS-2016
1
Condensed consolidated interim financial statement
Consolidated Financial Statement
Name of the Group:
Capital Group Apator
Period covered by financial statements
01/01/2016 - 30/06/2016
Rounding:
all amounts are presented in thousand of Polish zlotys (unless specified otherwise)
Page 1 Reporting currency:
Polish zloty (PLN)
PS-2016
2
Condensed consolidated interim financial statement
Contents 1.
General Information ................................................................................................................................................... 4
1.1. Information about the Capital Group .......................................................................................................................... 4 1.1.1. Information about the parent entity ........................................................................................................................ 4 1.1.2. Subject of the business activity of the parent entity and the capital group ............................................................. 4 1.1.3. Composition of the Capital Group ............................................................................................................................ 4 1.1.4. Compositon of the Executive board and Supervisory Board .................................................................................... 9 2.
Information on the base for the financial statement, reporting currency and applied rounding ........................... 10
2.1. Basis of preparation of the interim condensed consolidated financial statements .................................................. 10 2.2. Accounting principles................................................................................................................................................. 10 2.3. Adopted International Financial Reporting Standards .............................................................................................. 10 2.4. Reporting currency and applied rounding ................................................................................................................. 11 2.5. Duration of the Group’s business .............................................................................................................................. 12 2.6. 2.5. Approval of financial statements ........................................................................................................................ 12 3.
Consolidated financial statements of the Capital Group Apator ............................................................................. 13
3.1. Consolidated statement of financial position ............................................................................................................ 13 3.2. Consolidated statement of profir and loss and other comprehensive income ......................................................... 15 3.3. Consolidated statement of changes in equity ........................................................................................................... 18 3.4. Consolidated statement of cash-flows ...................................................................................................................... 20 4.
Basic accounting judgements and bases for uncertainty estimating ....................................................................... 22
5.
Information on seasonality of the business activity ................................................................................................. 22
6.
Notes to the consolidated financial statements ...................................................................................................... 23
6.1. Operating segments ................................................................................................................................................... 23 6.2. Intangible assets ........................................................................................................................................................ 24 6.3. Goodwill of subsidiaries ............................................................................................................................................. 25 6.4. Property, Plant and Equipment ................................................................................................................................. 26 6.5. Inventories ................................................................................................................................................................. 28 6.6. Trade receivables and other receivables ................................................................................................................... 29 6.7. Share capital .............................................................................................................................................................. 30 6.8. Other capitals............................................................................................................................................................. 30 6.9. Borrowings ................................................................................................................................................................. 31 6.10. Financial instruments............................................................................................................................................... 33 6.11. Provisions for liabilities ............................................................................................................................................ 34 6.12. Income tax ............................................................................................................................................................... 36 Name of the Group:
Capital Group Apator
Period covered by financial statements
01/01/2016 - 30/06/2016
Rounding:
all amounts are presented in thousand of Polish zlotys (unless specified otherwise)
Page 2 Reporting currency:
Polish zloty (PLN)
PS-2016
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Condensed consolidated interim financial statement
6.13. Financial revenues and costs ................................................................................................................................... 38 6.14. Net profit per one ordinary share:........................................................................................................................... 39 6.15. Explanations to the statement of cash flows ........................................................................................................... 39 6.16. Information on related entities ............................................................................................................................... 44 6.17. Contingent items and other items not recognized in the statement of financial position...................................... 45 6.18. Employment structure ............................................................................................................................................. 47 6.19. Events after the end of the period........................................................................................................................... 47 7.
Signatures ................................................................................................................................................................. 48
Name of the Group:
Capital Group Apator
Period covered by financial statements
01/01/2016 - 30/06/2016
Rounding:
all amounts are presented in thousand of Polish zlotys (unless specified otherwise)
Page 3 Reporting currency:
Polish zloty (PLN)
PS-2016
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Condensed consolidated interim financial statement
1. General Information 1.1. Information about the Capital Group The Capital Group APATOR consists of the parent entity APATOR SA and its subsidiaries.
1.1.1. Information about the parent entity Spółka Akcyjna APATOR seated in Toruń (ul. Gdańska 4a room C4) was established by the employees of liquidated public enterprise acting under the name Pomorskie Zakłady Aparatury Elektrycznej Apator in Toruń. The Company was registered in the District Court in Toruń, 5th Commercial Division on January 14, 1993 with the number RHB 1364. On 24 October 2001 the company was entered to the Entrepreneurs Register of the District Court in Toruń, 7th Commercial Division of the National Court Register with the number 0000056456. The parent entity conducts its activity in the territory of Poland in compliance with the provisions of the Code of Commercial Companies.
1.1.2. Subject of the business activity of the parent entity and the capital group Pursuant to the Articles of Association of the parent entity the basic scope of business activity includes manufacturing and services in the field of the switchgear and control instruments for electric energy and sales of measurement instruments and systems. The shares of APATOR S.A. are listed on the principal market- pursuant to the classification of WSE “Electric Machinery Industry”. The entities belonging to the Capital Group are mainly focused on the production and sales of measuring instruments and equipment, control and measuring equipment, switchgear and control gear, IT systems of SCADA class and cooperating telemetry equipment, securities and other network equipment for distributed systems ensuring the remote control and monitoring of the power grids for the full range of voltage and data reading and transmitting equipment.
1.1.3. Composition of the Capital Group In the first half of 2016 the Capital Group Apator (“Apator Group”) included the company Apator SA and the following subsidiaries:
Apator Control Sp. z o.o. (Toruń) – subsidiary of Apator S.A. Apator Rector Sp. z o. o. (Katowice) – subsidiary of Apator S.A. FAP Pafal S.A. (Świdnica) – subsidiary of Apator S.A. Apator Metrix S.A. (Tczew) – subsidiary of Apator S.A. Apator GmbH (Berlin, Germany) – subsidiary Apator S.A. Apator Rector Sp. z o. o. (Zielona Góra) – subsidiary of Apator S.A. Apator Powogaz S.A. (Poznań) – subsidiary of Apator S.A. Apator Powogaz S.A. (Łódź) – subsidiary of Apator S.A. Apator Telemetria Sp. z o.o. (Słupsk) – subsidiary of Apator Powogaz S.A. Apator Metroteks TOV (Kiev, Ukraine) – subsidiary of Apator Powogaz S.A. Apator Metra s.r.o. (Sumperk, Czech Republic) – subsidiary of Apator Powogaz S.A.
Name of the Group:
Capital Group Apator
Period covered by financial statements
01/01/2016 - 30/06/2016
Rounding:
all amounts are presented in thousand of Polish zlotys (unless specified otherwise)
Page 4 Reporting currency:
Polish zloty (PLN)
PS-2016
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Condensed consolidated interim financial statement
Apator Miitors ApS. (Sumperk, Czech Republic) – subsidiary of Apator Powogaz S.A. iMeters Sp. z o.o. - Subsidiary Apator Telemetria Sp. z o.o. George Wilson Industries Ltd. (Coventry, Great Britain) - subsidiary of Apator Metrix S.A.
The Apator Group held interest in the following entities under joint-control:
ZAO Teplovodomer (Mytishi, Russia) – jointly controlled entity by Apator Powogaz S.A. Inda d.o.o. (Slovenia) - jointly controlled entity by George Wilson Industries Ltd.
Name of the Group:
Capital Group Apator
Period covered by financial statements
01/01/2016 - 30/06/2016
Rounding:
all amounts are presented in thousand of Polish zlotys (unless specified otherwise)
Page 5 Reporting currency:
Polish zloty (PLN)
PS-2016
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Condensed consolidated interim financial statement
Entities belonging to the Capital Group covered by the consolidation Company
Registered office
Competent Court/ registering entity
Basic subject of activity,
Share in capital
Consolidatio n method
Notes
Katowice
Production of switchgear and control equipment for electric energy, electric equipment, crane equipment, pumps and compressors and related services
District Court in Katowice, 8th Commercial Division of the National Court Register; KRS 0000047770
100.00%
Full
Subsidiary
APATOR CONTROL Sp. z o.o.
Toruń
Production of switchgear and control equipment, electric equipment and related services as well as R&D works in technical sciences
District Court in Toruń, 7th Commercial Division of the National Court Register; KRS 0000016020
100.00%
Full
Subsidiary
APATOR METRIX S.A.
Tczew
Production of measuring, control, navigation and other instruments and tools
District Court in Gdańsk, 9th Commercial Division of the National Court Register; KRS 0000046259
100.00%
Full
Subsidiary
FAP „PAFAL” S.A.
Świdnica
Production of electric and electronic control and measuring equipment, trade activity, services
District Court for Wrocław-Fabryczna in Wrocław, 9th Commercial Division of the National Court Register; KRS 0000057162
100.00%
Full
Subsidiary
APATOR RECTOR Sp. z o.o.
Zielona Góra
IT, editing, printing and reproduction of recorded information carriers
District Court in Zielona Góra, 8th Commercial Division of the National Court Register; KRS 0000297413
100.00%
Full
Subsidiary
APATOR POWOGAZ S.A.
Poznań
Production of measuring, control, navigation and other instruments and tools
District Court Poznań - Nowe Miasto and Wilda in Poznań, 8th Commercial Division of the National Court Register KRS 0000028129
100.00%
Full
Subsidiary
Apator Elkomtech S.A.
Łódź
Production of IT systems of SCADA class and cooperating telemetry equipment, securities and other network equipment for distributed systems
District Court for Łodź – Śródmieście in Łodź, 20th Commercial Division of the National Court Register; KRS 0000009308
100.00%
Full
Subsidiary
APATOR GmbH
Berlin
Sale of measuring systems, prepayment electric energy meters and gas meters
HRB 123670B Charlottenburg
100.00%
Full
Subsidiary
APATOR MINING Sp. z o.o.
Name of the Group:
Capital Group Apator
Period covered by financial statements
01/01/2016 - 30/06/2016
Rounding:
all amounts are presented in thousand of Polish zlotys (unless specified otherwise)
Page 6 Reporting currency:
Polish zloty (PLN)
PS-2016
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Condensed consolidated interim financial statement
Company
Registered office
Competent Court/ registering entity
Basic subject of activity,
Share in capital
Consolidatio n method
Notes
APATOR TELEMETRIA Sp. z o.o.
Słupsk
Production of data reading and transmitting devices, production of system IT application
District Court in Gdańsk-Północ, 8th Commercial Division of the National Court Register; KRS 0000290726
51.50%
Full
Indirect subsidiary Indirect share
iMeters Sp. z o.o.
Gdańsk
Production, sales and service of heat monitoring and settlement systems
District Court in Gdańsk-Północ, 8th Commercial Division of the National Court Register; KRS 0000506042
100.00%
Full
Indirect subsidiary Indirect share
APATOR METROTEKS TOV
Kiev Ukraine
Water and heat meters distribution
61.00%
Full
Indirect subsidiary Indirect share
APATOR METRA S.R.O.
Sumperk Czech Republic
Production of costs distribution systems, thermometers and thermostats
100.00%
Full
Indirect subsidiary Indirect share
GEORGE WILSON INDUSTRIES Ltd
Coventry Great Britain
Production and sale of household and industrial gas meters; smart metering for gas measurement
100.00%
Full
Indirect subsidiary Indirect share
Apator Miitors ApS.
Aarhus Denmark
Design and development of ultrasound technology in the field of water and heat metering
100.00%
Full
Indirect subsidiary Indirect share
Name of the Group:
Capital Group Apator
Period covered by financial statements
01/01/2016 - 30/06/2016
Rounding:
all amounts are presented in thousand of Polish zlotys (unless specified otherwise)
Page 7 Reporting currency:
Polish zloty (PLN)
PS-2016
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Condensed consolidated interim financial statement
Consolidated entities under the joint control
Company
Registered office
Basic subject of activity,
Inda d.o.o.
Slovenia
ZAO „Teplovodomer”
Mytishi Russia
Competent Court/ registering entity
Share in capital
Consolidation method
Notes
Development works for electronic counters and communication technologies applied in smart metering
35.00%
Equity method
Indirectly jointly controlled Indirect share
Production and sale of water and heat meters and their legalization and service
50.00%
Equity method
Indirectly jointly controlled Indirect share
Name of the Group:
Capital Group Apator
Period covered by financial statements
01/01/2016 - 30/06/2016
Rounding:
all amounts are presented in thousand of Polish zlotys (unless specified otherwise)
Page 8 Reporting currency:
Polish zloty (PLN)
PS-2016
9
Condensed consolidated interim financial statement
Changes in the Capital Group in the first half of 2016 On 29 March 2016 the jointly controlled entity OOO Apator - Electro seated in Moscow was liquidated (the liquidation application was made on 24 December 2015).
1.1.4. Composition of the Executive Board and Supervisory Board Executive Board
Andrzej Szostak - President of the Executive board Piotr Nowak - Member of the Executive board Piotr Dobrowolski - Member of the Executive board (from 22 February 2016)
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
Name of the Group:
Capital Group Apator
Period covered by financial statements
01/01/2016 - 30/06/2016
Rounding:
all amounts are presented in thousand of Polish zlotys (unless specified otherwise)
Page 9 Reporting currency:
Polish zloty (PLN)
PS-2016
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Condensed consolidated interim financial statement
2. Information on the base for the financial statements, reporting currency and applied rounding 2.1. Basis of preparation of the interim condensed consolidated financial statements The presented condensed interim consolidated financial statements of the Capital Group Apator as of and for the period ended on 30 June 2016 have been prepared pursuant to the International Accounting Standard IAS 34 “Interim financial statements”, endorsed by the European Union. These financial statements do not contain all information required to be disclosed in the full financial statements and should be read along with the consolidated financial statements of the Capital Group Apator prepared as of and for the period ended on 31 December 2015. The condensed interim consolidated financial statements of the Capital Group Apator covers the first six months of 2016 and contains the comparative data:
consolidated statement of financial position - as of 31 December 2015
consolidated statement of cash-flows - for the period of 6 months ended on 30 June 2015
consolidated statement of profit and loss and comprehensive income for the period of 3 months, from 1 April to 30 June 2015 and for 6 months ended on 30 June 2015 consolidated statement of changes in equity - for the period from 1 January to 30 June 2015
2.2. Accounting principles The consolidated interim financial statements have been prepared pursuant to the historical cost concept, excluding the measurement of some non-current assets (investment property) and financial instruments (derivatives), which are measured at fair value. The accounting principles adopted for the interim condensed consolidated financial statements are compliant with the accounting principles adopted for the annual consolidated financials for the year ended on 31 December 2015.
2.3. Adopted International Financial Reporting Standards For preparing the condensed interim financial statements for the period from 1 January 2015 to 30 June 2016 the same accounting principles and calculation methods were applied as for the last consolidated financial statements for the period ended on 31 December 2015. STANDARDS AND INTERPRETATION TO BE ENDORSED BY THE EUROPEAN UNION The following new standards, amendments and interpretations are waiting for being endorsed by the European Union have not been effective yet for the periods ended on 31 December 2016 and have not been applied in the condensed interim financial statements:
IFRS 9 Financial Instruments (2014) - for annual periods beginning on 1 January 2018, IFRS 14 Regulatory Deferral Accounts - for annual periods beginning on 1 January 2016, IFRS 15 Revenue from Contracts with Customers - for periods beginning on 1 January 2018, Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 Consolidated Financial Statements and to IAS 28 Affiliated Entities) - for periods beginning on 1 January 2016, Capital Group Apator Page 10 Name of the Group: Period covered by financial statements
01/01/2016 - 30/06/2016
Rounding:
all amounts are presented in thousand of Polish zlotys (unless specified otherwise)
Reporting currency:
Polish zloty (PLN)
PS-2016
11
Condensed consolidated interim financial statement
Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10 Consolidated Financial Statements, IFRS Disclosure of Interests in Other Entities and to IAS 28 Investments in Associates and Joint Ventures) - for periods beginning on 1 January 2016, IFRS 16 Leasing - for annual periods beginning on 1 January 2019, IFRS 7 Statement of Cash Flows - for periods beginning on 1 January 2017, IAS 12 Income Tax - for annual periods beginning on 1 January 2017,
STANDARDS AND INTERPRETATIONS NOT APPLIED IN THESE FINANCIAL STATEMENTS As of the date of approval of these financial statements there are not any standards and interpretations, endorsed by the European Union, but not effective yet. The aforementioned changes will not have the material effect on the consolidated financial statements.
2.4. Reporting currency and applied rounding The reporting currency for these consolidated financial statements is Polish zloty, and all amounts are presented in thousands of Polish zloty (unless it is stated otherwise). The functional currency of subsidiaries is as follows:
Apator GmbH - EUR, Apator Metra – CZK, Apator Metroteks – UAH, George Wilson Industries Ltd. – GBP, Apator Miitors ApS. – DKK.
As of the end of the period the assets and liabilities of these entities are translated into the reporting currency of the Group at the exchange rate applicable as of the end of the period and their statements of comprehensive income are translated pursuant to the average weighted exchange rate for the relevant fiscal year. The exchange differences arisen as a result of such translation are recognized directly in the equity as the separate item. The functional currency of the other companies is the Polish zloty.
Name of the Group:
Capital Group Apator
Period covered by financial statements
01/01/2016 - 30/06/2016
Rounding:
all amounts are presented in thousand of Polish zlotys (unless specified otherwise)
Page 11 Reporting currency:
Polish zloty (PLN)
PS-2016
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Condensed consolidated interim financial statement
2.5. Duration of the Group’s business The duration of the business activity of the parent entity APATOR SA and the consolidated entities is non-specified. The condensed interim consolidated financial statements have been prepared assuming the going concern principles for the foreseeable future, it means in the period not shorter than 12 months starting from the end of reporting period.
2.6. 2.5. Approval of financial statements These condensed interim consolidated financial statements were approved and signed by the Executive Board of the entity on 26 August 2016.
Name of the Group:
Capital Group Apator
Period covered by financial statements
01/01/2016 - 30/06/2016
Rounding:
all amounts are presented in thousand of Polish zlotys (unless specified otherwise)
Page 12 Reporting currency:
Polish zloty (PLN)
PS-2016
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Condensed consolidated interim financial statement
3. Consolidated financial statements of the Capital Group Apator 3.1. Consolidated statement of financial position as of Description
NOTE
Non-current assets
30/06/2016 (not audited)
31/12/2015
433,420
430,329
Intangible assets
6.2
80,007
76,085
Goodwill of subsidiaries
6.3
123,481
122,685
Property, Plant and Equipment
6.4
182,180
184,187
Investment properties
1,649
1,633
Investments in the jointly controlled entities consolidated by equity method
1,843
2,569
Other long-term financial assets
22
2
- in other entities
22
2
Long-term receivables
6,893
7,387
- from other entities:
6,893
7,387
27
62
37,318
35,719
425,126
363,938
Long-term prepayments and accrued income Deferred income tax assets
6.12
Current assets Inventories
6.5
148,875
126,684
Trade receivables
6.6
172,359
150,023
3,621
1,448
168,738
148,575
1,463
1,883
Receivables due to taxes, customs and social insurances
12,571
8,363
Other short-term receivables
32,338
30,487
- from other entities:
32,338
30,487
Other short-term financial assets
944
1,124
- in other entities
944
1,124
50,677
42,384
5,899
2,990
858,546
794,267
- from related entities - from other entities: Receivables due to corporate income tax
Cash and cash equivalents Prepaid expenses TOTAL ASSETS
Name of the Group:
Capital Group Apator
Period covered by financial statements
01/01/2016 - 30/06/2016
Rounding:
all amounts are presented in thousand of Polish zlotys (unless specified otherwise)
Page 13 Reporting currency:
Polish zloty (PLN)
PS-2016
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Condensed consolidated interim financial statement as of
Description
NOTE
30/06/2016 (not audited)
31/12/2015
Equity
426,048
420,958
Equity attributable to the shareholders of the parent entity
421,371
416,282
Share capital
6.7
3,311
3,311
Other capitals
6.8
357,783
318,398
(58)
(58)
Capital from measurement of hedging transactions and exchange differences from consolidation
(4 123)
(2 986)
Undivided financial result
64,458
97,617
- undivided profit from previous years
37,510
46,367
- profit for the period
26,948
60,102
-
