Capital Group Amica Wronki S.A.
Consolidated Financial Statement For the 1st quarter of 2010
31 March 2010
Interim financial statement complying with the requirements of IAS34 „Interim Financial Reporting”
NOTES FROM THE MANAGEMENT BOARD on the results for the 1st quarter of 2010.
‐ unless indicated otherwise, all figures are given in thousands of Polish Zlotys ‐ this report meets the requirements of International Financial Reporting Standards (IFRS). ‐ the contents and the date of publication of this report comply with Polish laws and regulations
Key information:
Increase in sales by 41m PLN
Growth of sales on the Russian market and in Britain
Increase of EBIT by 2.6m PLN
Sale of an organised part of the company (the Washing Machine and Refrigerator Factories) to
Samsung (204.5 m PLN)
A significant improvement in the liquidity and debt ratios
A fall in liabilities from negative valuation of derivatives (37.7m PLN.)
1. Introduction In the 1st quarter of 2010 the Group saw a profit of PLN ‐0.2m, which indicates improvement by PLN 5.6m when compared to the 1st quarter of 2009 . The higher net profit is a result of the increase in sales by 40.9m PLN (+15.5%) and an improvement in profitability. The increase in turnover mainly affects the Polish, Russian and British markets. 2. Selected financial data I Q 2010 I Q 2009 Change in
thousands PLN Dynamics
%Net revenue from sales of products, goods materials and services (thousands PLN)
305,077 264195 40,882 115%
Gross profit on sales (thousands PLN) 69,035 56,710 12,325 122%EBITDA (thousands PLN) 14,016 12,327 1,689 114%Operating profit (EBIT) (thousands PLN) 3,990 1,433 2,557 278%Profit before tax (thousands PLN) �3,267 �5,211 1,944 Net profit (thousands PLN) 238 �5,338 5,576 Long-term liabilities (thousands PLN) 43,298 189,149 �145,851 23%Short-term liabilities (thousands PLN) 374,466 440,916 �66,450 85%Equity capital allocated to shareholders of the Parent Company (thousands PLN) 290,109 208,726 81,383 139%Stated capital (thousands PLN) 17,475 17,475 0 Number of shares (thousands) 8,737,500 8,737,500 0 Profit per ordinary share (PLN) 0.03 �0.61 0.64
In the first quarter of 2010 consolidated sales revenue increased by 15.5% compared with the 1st quarter of 2009. The main markets characterised by an increase in sales were Poland, the east and Britain. The high sales dynamic on the eastern market (+37%) was caused by the improving economic situation in Russia. Sales in Great Britain rose by 28%.
As a result of increased turnover and profitability, gross profit on sales increased by 12.3m PLN. The growth in the Group's gross sales profitability was affected by:
• The growth in the sales profitability of Amica Wronki described in the commentary • The growth in Hansa's profit margin on sales due to the strengthening of the rouble and the
improvement on the Russian market Cost of sales and general administrative expenses are higher by 9.5m PLN. The main reason for the increase were the expenses connected with Amica Wronki SA's promotion and marketing, which were 5m PLN higher than in the same period of the previous year. In addition, the Group incurred general costs in the 1st quarter in connection with the sale of the refrigerator and washing machine factories. The increase in these costs caused a fall in sales profit to 2.6m PLN. This, however, is 2.9m PLN higher compared to the 1st quarter of 2009. In the first quarter of 2010 the Group achieved an operating profit to the sum of 4.0m PLN (2.6m PLN higher), and EBITDA stood at 13.5m PLN (1.7m PLN higher). The negative currency translation losses in Amica Wronki's financial were partly offset by positive differences in the daughter companies, mainly Hansa and Amica Commerce. In the first quarter the Group saw a profit of 0.2 million PLN. 3. Household appliances market report – Poland In the first quarter of 2010 sales of household appliances in Poland reached a value of over 794 million PLN and when compared with the same period the previous year were lower by nearly 10.6%. The fall in sales during the period analysed affected practically every assortment group. Most affected were free‐standing fridges (a fall of nearly 21% year on year), dishwashers (‐22.1%) and washing machines (‐7%). Cooker hoods (‐15.7%) and fitted heated appliances (‐6%) also attracted less interest. The only groups which saw higher sales in the 1st quarter compared with the same period of 2009 were free‐standing cookers (+8.2%) and fitted refrigerators (+14.6%). * Data for the period from January to March concerning the market in large household appliances based on CECED surveys and our own estimates. 4. Domestic sales + market share In the 1st quarter of 2010 Amica's sales reached a value of nearly 115m PLN and when compared with the same period the previous year were higher by 22.4%. This growth allowed the market share in the periods under analysis to improve by nearly 4pp. The rise in sales was mainly thanks to increased demand for washing machines (sales up 63.7% year on year), freestanding refrigerators (+33.8%) and freestanding cookers (+38%). Fitted refrigerators also contributed to the growth in sales (+74.4%). The groups in which Amica saw a fall in sales were cooker hoods (‐5.9%) and dishwashers (‐4.4%). Sales of fitted heating appliances, however, remained practically the same as in the 1st quarter of 2009.
To summarise, the growth in sales in the largest market segments (washing machines and fridges) allowed Amica to significantly improve its market shares. In spite of the falls in sales, Amica also increased its market shares for cooker hoods and dishwashers ‐ the dynamic of Amica's fall in both these segments was lower than the dynamic of the market's decrease. . * Data for the period from January to March concerning the market in large household appliances based on CECED surveys and our own estimates. 5. Sales on nondomestic markets. In the 1st Quarter of 2010, Amica made sales on foreign markets worth a total of €31.6 million. The western region had the highest share of foreign sales for the 1st Quarter of 2010. Turnover achieved in this region constituted 35% of export sales. Amica's sales in this region in the 1st quarter of 2010 remained at the level of the same period of the previous year. The second largest sales market during the period analysed was the eastern region. Turnover achieved in this region constituted 27% of export sales. Sales on the eastern markets grew when compared with the same period of the previous year by 37%. This was the second consecutive quarter in which sales in this region grew year on year. This result allows us to hope that the crisis in Russian and Ukraine is slowly being confined to history, and to look optimistically to the future. The northern region’s total share of exports for the 1st Quarter of 2010 stood at 19%. In comparison with the same period of the previous year turnover in this region increased by nearly 30%. Overall, Amica generated sales in the “South and others” region 23% higher than in the first quarter of 2009. Once again worthy of note are the exceptionally good results in the United Kingdom, where the turnover in the third quarter of 2010 was over 28% higher than in the same period of 2009. The "southern and other" region had a 19% share in total exports. The structure of export sales of Amica in the first quarter of 2009 & 2010
Struktura sprzedaży eksportowej Amica w I kwartale 2009 i 2010
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2009 2010
Południe i pozostaliPółnocZachódWschód
SOUTH AND OTHERS NORTH WEST EAST
6. Commentary on financial statements of major Group companies Gram A/S* Profit and loss account Sales revenue in the 1st quarter of 2010 stood at almost 50m DKK, 9% lower than the 1st quarter of 2009. The sales achieved on the Danish market (approx. 60% of Gram's sales), allowed the total share of the Danish market to increase from 4.5 to 5.8%. The gross profit margin on sales grew by 0.6 p.p. compared to the first quarter of 2009. As a result of the austerity measures undertaken, the levels of sales and general administrative expenses have been lowered, by applying their level to the lower sales and mark‐up. Consequently, the loss on operating activities was 1.7m DKK, which was similar to the level in the 1st quarter of 2009. The net result after the 1st quarter of 2010 was ‐1.5m DKK, similar to that achieved in the 1st quarter of 2009. Balance Total assets at the end of the first quarter stood at 92.8m DKK and was 3.2m DKK lower than in the same period of the previous year. The lower amount of assets resulted from the lower value of receivables (‐9.8m DKK), cause by the lower levels of sales. The amount of inventory was 5.1m DKK higher. Due to the higher amount of equity capital and the fall in value of the assets, the Company paid off a loan to Amica Wronki S.A. Amica International GmbH /AI* Profit and loss account Revenue of Amica International GmbH in the 1st quarter of 2010 were 17.1m EUR. Compared to the same period of 2009, revenue achieved a slight increase (a difference of 0.66m EUR). Gross sales profit stood at 1.5m EUR and were 1m EUR lower than in the same period of the previous year. This means a fall in profit margin on sales to 8.9% (compared to 15.4% a year earlier). The lower profitability was caused by the fall in mark‐up on goods from outside the Group and the higher sales of goods with a relatively low profit margin. There was a fall in the total value of sales and administrative costs by over 670,000 EUR. The result on other operating activity reached a higher level than in the first quarter of 2009 (by 69%), which allowed the Company to achieve a positive result on operating activities, at 22,000 EUR. After taking into consideration the operating activities result, Amica International saw a net loss of 30,000 EUR. In the same period of 2009 profit stood at 0.3m PLN. Balance
The balance of Amica International GmbH at the end of the first quarter of 2010 was 14.6m EUR, which was 23% less (‐4.2 m EUR) compared to the same period of the previous year. On the assets side there was a 27% fall in short‐term receivables (from 10.8m EUR to 7.9m EUR). At the end of the first quarter of 2010 inventory levels were similar to a year earlier, at 5.4m EUR. A major change in the structure of liabilities affects the size of short‐term liabilities, on which a fall was noted compared with the 1st quarter
of 2009, by 4m EUR (‐35%) from 11.7m EUR to 7.6m EUR. At the end of the 1st quarter of 2010 the company has no long‐term debts. The noticeable reduction in the level of short‐term debt has led to an improvement in the financial liquidity ratio. This change is also positively reflected in the Company's total debt ratio (down from 80% to 74.7 %). Amica Commerce s.r.o.* Profit and loss account In the 1st quarter of 2010 compared to the 1st quarter of 2009 Amica Commerce s.r.o saw a fall in revenue of 11.8m CZK (2009: 69m CZK , 2010: 57.1m CZK ). The lower volume of sales results from the worsened consumer mood on the Czech household appliances market. The Company achieved a gross sales result of 6.4m CZK (10.5m CZK in the 1st quarter of 2009) with profitability of 11.3%. Due to the lower sales, total sales and general administrative expenses were reduced by over 6.4m CZK (‐40.7%) to 9.4m CZK. The 1st quarter of 2010 ended for the Company with a positive result on financial activity, totalling 6.8m CZK (mainly due to positive exchange rate differences). The first quarter of the previous year ended with a negative result on financial activity, totalling ‐0.6m CZK. Amica Commerce s.r.o. closed the 1st quarter of 2010 with a net profit of 3.8m CZK, compared to a ‐5.5m CZK net loss a year earlier. Balance On the assets side of the balance sheet, on 31.03.2010 Amica Commerce s.r.o. saw a fall in short‐term receivables compared to the same period of the previous year, by 28.3m CZK (21%). The fall in receivables is largely due to the lower sales in this period. The decrease in receivables was accompanied by a fall in the value of short‐term liabilities (mainly commercial liabilities towards Amica Wronki). In comparison with the first quarter of 2009, the first quarter of 2010 finished with an inventory level 6.2m CZK lower, closing at 56.7m CZK. The balance of cash owned by the Company was also higher compared to the previous year (11.8m CZK). Hansa O.O.O. Profit and loss account In the 1st quarter of 2010 the Company achieved sales revenue of 243.8m RUB, which is 10.5% higher than in the 1st quarter of 2009. The strengthening of the rouble against the euro allowed profitability to be increased by 2.7 p.p. Both of these factors had a positive influence on the growth in gross sales profit, which rose by 9.7m roubles compared to the 1st quarter of 2009. The Company also intensified its marketing activities while simultaneously limiting general administrative expenses. This allowed the Company to achieve an operating result of 7.6 m RUB (vs. 5.2m RUB in the 1st quarter of 2009). The strengthening of the rouble against the euro resulted in profits from currency translation (on receivables towards Amica Wronki S.A.) of 28.1m RUB. In turn, thanks to loans being paid back to Amica Wronki the Company showed interest costs 1.2m RUB lower. Net profit in the 1st quarter of 2010 was 23.5m RUB ‐ which was 22m RUB better than that achieved in the 1st quarter of last year.
Balance The value of company assets on 31.03.2010 was 341m RUB, which was higher than last year mainly due to the increase in inventory value by 16.8m RUB, receivables by 11m RUB and cash by 20.3m RUB. 88% of assets are current assets, of which 83% are receivables. The profit achieved over the last year has allowed a growth in current assets to be financed and the loan to be repaid to Amica Wronki. 7. Cost of manufacturing products sold The main reasons for the improvement in profitability are: the fall in prices of materials and raw materials, the growing share of sales on the eastern market characterised by a relatively high profitability and the effect of technological savings introduced in the production processes. Another positive effect influencing the cost of products was the strengthening of the PLN against the EUR, which was reflected in lower purchase costs for materials and goods transacted in that currency. In addition, in the 1st quarter of 2010 the adjustment of revenue from settling effective hedging was 5.4m PLN, compared to 9.7m PLN the year before. It should also be pointed out that with higher sales volumes, the department costs of the factories remained at the same level, which caused a fall in the unitary cost of production. 8. Balance 31.03.2010 31.03.2009 Change in PLN Dynamics % I. Fixed assets 246,026 445,487 �199,461 55%II. Current assets 546,357 484,642 61,715 113%1. Inventory 151,723 166,191 �14,468 91% 2. Short-term receivables 272,711 274,308 �1,597 99% 3. Short-term investments 109,565 33,362 76,203 328% 4. Short-term accruals 12,358 10,781 1,577 115% III. Assets classified as items for sale 4,218 4,374 �156 96%
Total assets 796,601 934,503 �137,902 85%
31.03.2010 31.03.2009 Change in PLN Dynamics % I. Equity capital 290,111 208,727 81,384 139% II. Liabilities and reserves 506,174 724,960 �218,786 70% 1. Reserves for liabilities 69,476 78,063 �8,587 89% 2. Long term liabilities 43,298 189,149 �145,851 23% 3. Short term liabilities 374,466 440,916 �66,450 85% 4. Accruals and deferred income 18,934 16,832 2,102 112% III. Liabilities associated with assets for sale 316 816 �500 39%
Total liabilities 796,601 934,503 �137,902 85%
At the end of the first quarter of 2010 the Company noted a reduction of the balance amount when compared to the end of 1st quarter 2009 by 137.9 million PLN. Fixed assets fell by 199.5m PLN. The following factors contributed decisively to this fall: ‐ a fall in tangible fixed assets and intangible assets by 232.4m PLN, mainly caused by the sale of the refrigerator and washing machine factories and the limited value of investments conducted and commenced; ‐ the acquisition of shares in ARES sp. z o.o. (in exchange for receivables from MARS), owner of the Panorama shopping centre in Gorzów Wielkopolski for a sum of 56m PLN; ‐ a fall in the value of deferred income tax concerning hedging instruments, by 20.8m PLN. The growth in current assets by 61.7m PLN is due to the increase in short‐term investments. This increase was caused by the inflow of 85% of the price agreed in the factory sale contract with Samsung Electronics
Poland Manufacturing sp. z o.o. The payment deadline was stipulated in the contract as 31.03.2010. A large amount of the long‐term credit was paid off automatically from the sum transferred. The rise in value of equity capital is a result of the change in valuation of hedging instruments. This valuation was prepared with a rate of 3.86 (and lower volume) compared to 4.70 at the end of March 2009. The decrease in long‐term liabilities is due in large part to the fall in value of long‐term credit in connection with the sale of the factories (107.4m PLN) and the fall in liabilities from negative valuation of derivatives (37.7m PLN). The fall in short‐term liabilities, however, results from: ‐ a fall in liabilities from negative valuation of derivatives (75.7m PLN.) ‐ an increase in tax liabilities (22.2m PLN). 9. Cash flow I Q 2010 I Q 2009 Change in thousands
PLN Dynamics %
Net cash flows from operating activities (thousands PLN) 3,524 26,128 �22,604 13%Net cash flows from investment activities (thousands PLN) 167,109 �22,646 189,755 -738%Net cash flows from financial activities (thousands PLN) �108,227 �22,606 �85,621 479%Total net cash flows (thousands PLN) 62,406 �19,124 81,530 -326%
In the first quarter of 2010 the balance of cash flow from operating activities was +3.5 million PLN and was lower by 22.6 million PLN when compared to the same period of the previous year. The first quarter was a period of reduction of inventory stock which fell by 20.7 million PLN when compared to the end of 2009. Like inventory, receivables also saw a reduction (o 5.5m PLN). This is in connection with the repayment deadlines for the high sales of the 4th quarter of 2009. In the 1st quarter (vs end of year) the Company significantly lowered its commercial liabilities (by 59.3m zl), which is also an indirect result of the policy of limiting stocks and receivables, and of the inflow of cash from the sale of the factories. In the field of investment activity, inflows should be noted from the sale of intangible assets and tangible fixed assets (sale of the refrigerator and washing machine factories) of 176.4m PLN. In the 1st quarter, total investment expenditure stood at 9.3m PLN. 3.1m PLN of this went mainly on expenses connected with the acquisition of tangible fixed assets. However, the negative effects of the hedging transaction settlements adversely influenced revenue from investment activities, where the Group shows an account of the effects of hedging, to a sum of 6.2m PLN. Negative cash flows from financial activity in the 1st quarter of 2010 stood at108.2m PLN. Having received some of the cash for the sale of the factories, the Company paid off a large part of its interest debt. The total balance of credit taken out and repaid stood at over 101m PLN. At the end of March the level of cash stood at 105.9m PLN, mainly cash remaining from the sale of the factories.
10. Key performance indicators
Margins I Q 2010 I Q 2009 Change in pp Gross profit on sales 22.6% 21.5% 1.2 Operating profit margin 1.3% 0.5% 0.8 EBiTDA margin 4.6% 4.7% �0.1 Gross profit margin �1.1% �2.0% 0.9 Net profit margin 0.1% �2.0% 2.1
In the 1st quarter of 2010 the group saw a growth in profitability at every level analysed compared to the 1st quarter of last year. The reasons were described in the previous point to the commentary.
KPIs I Q 2010 I Q 2009 Dynamics % Current ratio 1.47 1.11 132.7% Quick ratio 1.05 0.72 145.9% Liability ratio 63.6% 77.7% 81.9% Net working capital (thousands PLN) 175,793 47,284 371.8%
The increase in the liquidity ratios is caused by the sale of factories to Samsung Electronics Poland Manufacturing sp. z o.o. In connection with this, both short‐term investments and long‐term receivables also increased. The fall in the liability ratio is also a result of repayment of some of the long‐term credit, and of the clear improvement in the valuation of hedging contracts. The increase in KON results from an accumulation in growth of current assets as well as an improvement in valuation of short‐term contracts.
10
Financial data thousands PLN thousands EUR SELECTED FINANCIAL DATA 1st qtr 2010 1st qtr 2009 1st qtr 2010 1st qtr 2009
1 Net revenue from sales of products, goods and material 305 077 264 195 76 906 57 441
2 Profit (loss) on operating activities 3 990 1 433 1 006 312
3 Profit (loss) before tax ‐3 267 ‐5 211 ‐824 ‐1 133
4 Net profit (loss) allocated to company shareholders 238 ‐5 338 60 ‐1 161
5 Net profit (loss) allocated to minority shareholders 0 0 0 0
6 Net cash flows from operating activities 3 524 26 128 888 5 681
7 Net cash flows from investment activities 167 109 ‐22 646 42 126 ‐4 924
8 Net cash flows from financial activities ‐108 227 ‐22 606 ‐27 283 ‐4 915
9 Total net cash flows 62 406 ‐19 124 15 732 ‐4 158
10 Total assets 796 601 934 503 206 256 198 775
11 Liabilities and reserves 506 174 724 960 131 058 154 204
12 Long term liabilities 43 298 189 149 11 211 40 233
13 Short term liabilities 374 466 440 916 96 957 93 786
14 Equity capital allocated to shareholders 290 109 208 726 75 115 44 398
15 Equity capital allocated to minority shareholders 2 1 1 0
16 Share capital 17 475 17 475 4 525 3 717
17 Number of shares 8 737 500 8 737 500 8 737 500 8 737 500
18 Number of own shares for disposal 0 725 441 0 725 441
19 Number of own shares for redemption 962 227 236 756 962 227 236 756
20 Profit (loss) per ordinary share 0,03 ‐0,61 0,00 ‐0,13
21 Book value per share (PLN / EUR) 41,22 26,75 10,67 5,69
22 Declared or paid dividend per share (PLN / EUR) *In order to calculate the book value per share, equity capital was increased by the value of shares presented in equity capital with a negative sign. Financial data was converted to the euro according to the following currency exchange rates: 31.03.2010 31.03.2009 Currency exchange rates for the profit and loss account and cash flow statement 3,9669 4,5994 exchange rate for calculating the balance sheet items 3,8622 4,7013
11
CONSOLIDATED FINANCIAL STATEMENT
thousands PLN CONSOLIDATED BALANCE SHEET situation as of
31.03.2010 situation as of 31.03.2009
situation as of 31.12.2009
ASSETS
I. Fixed assets 246 026 445 487 249 234
1. Intangible assets, of which: 23 003 36 385 24 234
‐ goodwill 5 643 6 796 5 984
2. Goodwill of subsidiaries 14 400 14 400 14 400
3. Tangible fixed assets 108 045 327 034 111 003
4. Investments 20 229 21 061 20 437
4.1 Investment property 20 229 21 061 20 437
4.2 Others
5. Financial assets 56 983 6 250 57 031
5.1 Financial assets available for sale 56 050 0 56 048
a) in subsidiaries and affiliates 56 048 56 048
b) in other entities 2
5.2 Long‐term loans and receivables 792 6 109 842
‐ for subsidiaries and affiliates 0 5 051 0
‐ for subsidiaries and affiliates 792 1 058 842
5.3 Other long‐term financial assets 141 141 141
6. Long‐term accruals 23 366 40 357 22 129
6.1 Assets from deferred taxes 23 169 40 038 21 920
6.2 Other deferred charges and accruals 197 319 209
II Current assets 546 357 484 642 483 195
1. Inventory 151 723 166 191 172 387
2. Short‐term receivables 272 711 274 308 254 639
2.1 From affiliated entities 14 619 17 504 15 106
2.2 From other entities 258 092 256 804 239 533
3. Short‐term investments 109 565 33 362 46 950
3.1 Short‐term financial assets 109 565 33 362 46 950
a) in subsidiaries and affiliates 2 249 2 220
b) in other entities 375 1 430 81
c) cash and other cash assets 106 941 31 932 44 649
3.2 Other short‐term investments
4. Short‐term accruals 12 358 10 781 9 219
III. Assets classified as items for sale 4 218 4 374 207 994
Total assets 796 601 934 503 940 423
12
thousands PLN CONSOLIDATED BALANCE SHEET situation as of
31.03.2010 situation as of 31.03.2009
situation as of 31.12.2009
LIABILITIES
I. Equity capital 290 111 208 727 276 611
1. Equity capital allocated to shareholders 290 109 208 726 276 609
1.1 Share capital 17 475 17 475 17 475
1.2 Called up share capital (negative value)
1.3 Own shares (negative value) ‐30 406 ‐25 018 ‐25 059
1.4 Supplementary capital 331 216 321 986 331 192
1.5 Revaluation capital ‐11 274 ‐93 965 ‐25 976
1.6 Other reserve capitals 8 431 8 411 8 431
1.7 Exchange gain (loss) on consolidation ‐12 846 ‐4 909 ‐17 012
a) currency translation gains 16 205 17 288 14 495
b) currency translation losses ‐29 051 ‐22 197 ‐31 507
1.8 Profit (loss) from previous years ‐12 725 ‐9 917 ‐17 864
1.9 Net profit (loss) 238 ‐5 337 5 422
1.10 Write‐offs from the net profit during financial year (negative value)
2. Minority shareholders 2 1 2
II Liabilities and reserves 506 174 724 960 566 764
1. Reserves for liabilities 69 476 78 063 55 308
1.1 Deferred income tax reserve 8 867 24 229 19 883
1.2 Retirement benefits reserves 3 047 3 530 3 206
a) Long‐term 3 047 3 522 3 206
b) Short‐term 8
1.3 Other reserves 57 562 50 304 32 219
a) Long‐term 6 504 7 259 6 610
b) Short‐term 51 058 43 045 25 609
2. Long term liabilities 43 298 189 149 44 042
2.1 Towards affiliated entities
2.2 Towards other entities 43 298 189 149 44 042
3. Short term liabilities 374 466 440 916 452 668
3.1 Towards affiliated entities 6 968 1 165 7 243
3.2 Towards other entities 367 498 439 751 445 425
4. Accruals and deferred income 18 934 16 832 14 746
4.1 Long‐term 4 450 13 467 10 781
4.2 Short‐term 14 484 3 365 3 965
III. Liabilities associated with assets for sale 316 816 97 048
Total liabilities 796 601 934 503 940 423
Book value 320 515 233 744 301 668
Number of shares 8 737 500 8 737 500 8 737 500
Book value per share (PLN) 41,22 26,75 38,80
Number of shares after consideration of own shares 7 775 273 7 775 303 7 775 273
13
thousands PLN
CONSOLIDATED STATEMENT OF TOTAL revenue 1st qtr 2010 1st qtr 2009 Year 2009
I. Net revenue from sales of products, goods and materials, including: 305 077 264 195 1 317 567 ‐ from subsidiaries and affiliates 193 11 104 1. Net revenue from sale of products 215 471 181 047 955 456 2. Net revenue from sales of products, goods and materials 89 606 83 148 362 111
II. Costs of products, goods and materials sold, of which: 236 042 207 485 1 011 081 ‐ to subsidiaries and affiliates 0 4 0 1. Cost of manufacturing of products sold 159 668 143 201 714 135 2. Value of goods and materials sold 76 374 64 284 296 946
III. Gross profit (loss) on sales 69 035 56 710 306 486 IV. Sales costs 25 660 27 597 118 120 V. General administrative expenses 40 749 29 352 148 966 VI. Profit (loss) on sales 2 626 ‐239 39 400 VII. Other operating revenue 10 004 3 285 43 019 1. Profit on sales of non‐financial fixed assets 4 887 9 2. Subsidies 6 14 3. Revaluation of non‐financial fixed assets 980 25 421 4. Other operating revenue 4 137 3 279 17 575
VIII. Other operating costs 8 640 1 613 40 875 1. Loss on sales of non‐financial fixed assets 78 314 2. Revaluation of non‐financial fixed assets 3. Other operating costs 8 640 1 535 40 561
IX. Profit (loss) on operating activities 3 990 1 433 41 544 X. Financial revenue 5 991 5 247 10 438 1. Share dividends, including: ‐ from subsidiaries and affiliates 2. Interest, of which: 803 271 5 089 ‐ from subsidiaries and affiliates 28 171 3. Profit on sale of investments 4. Revaluation of investment 5. Others 5 188 4 976 5 349
14
thousands PLN CONSOLIDATED STATEMENT OF TOTAL REVENUE continued
1st qtr 2010 1st qtr 2009 Year 2009 XI. Financial costs 13 248 11 891 42 219
1. Interest, including: 6 040 6 096 24 553 ‐ for subsidiaries and affiliates 72 1 443 2. Loss on sale of investments 3. Revaluation of investment 4. Others 7 208 5 795 17 666
XII. Profit (loss) from sales of all or part of shares in subsidiaries XIII. Profit (loss) before tax ‐3 267 ‐5 211 9 763 XIV. Income tax ‐3 505 127 4 341
1. Current 12 309 64 5 227 2. Deferred ‐15 814 63 ‐886
XIV. Other obligatory decrease of gross profit (increased loss) XV. Net profit in the financial year 238 ‐5 338 5 422 including: allocated to company shareholders 238 ‐5 338 5 422 allocated to minority shareholders 0 XVI. Total other income 18 892 ‐27 272 28 590
1. Cash flow hedging instruments 18 151 ‐44 429 39 508 2. Income tax from hedging instruments ‐3 449 8 441 ‐7 507 3. Resolution of reserves for re‐evaluated fixed assets 24 24 4. Exchange gain (loss) on consolidation 4 166 8 692 ‐3 411
XVII. Total revenue for the period 19 130 ‐32 610 34 012 Net profit (loss) (annual) 238 ‐5 338 5 422 Weighted average of number of ordinary shares (number of shares) 8 737 500 7 923 077 7 923 077 Number of shares issued 8 737 500 8 737 500 8 737 500 Number of own shares 962 227 962 197 962 227 Profit (loss) per ordinary share (PLN) 0,03 ‐0,61 0,68
15
CONSOLIDATED CHANGES IN EQUITY
Stated capital Supplementar
y capital
Non‐distributed
result
Assets /own shares/
available for sale
Net cash flow hedging
instruments
Reserve from revaluation
Other reserve capitals
Exchange gain (loss) on
consolidation
Minority shareholders
capital
Total equity capital
Balance as of 01.01.2009 17 475 319 238 ‐5 180 ‐24 741 ‐60 132 2 155 8 431 ‐13 601 0 243 645
fundamental error / changes in accounting policy
Capital after correcting fundamental error 17 475 319 238 ‐5 180 ‐24 741 ‐60 132 2 155 8 431 ‐13 601 0 243 645 Changes in equity capital for three quarters of 2009 2 749 ‐10 074 ‐277 ‐35 988 ‐20 8 692 ‐34 918
Buy‐back to redeem own shares ‐277 ‐277
Other changes
Total revenue for three quarters of 2009 24 ‐5 337 ‐35 988 ‐20 8 692 ‐32 629
Balance as of 31.03.2009 17 475 321 987 ‐15 254 ‐25 018 ‐96 120 2 155 8 411 ‐4 909 0 208 727
Balance as of 01.01.2009 17 475 319 238 ‐5 180 ‐24 741 ‐60 132 2 155 0 243 645
fundamental error / changes in accounting policy 107 107
Capital after correcting fundamental error 17 475 319 238 ‐5 073 ‐24 741 ‐60 132 2 155 8 431 ‐13 601 0 243 752 Changes in equity capital in 2009, including 11 954 ‐7 369 ‐318 32 001 0 ‐3 411 2 32 857
Buy‐back to redeem own shares ‐318 ‐318
Re‐booking of financial result to equity capital 9 131 ‐9 131 0
Total revenue for 2009 5 422 32 001 ‐3 411 34 012
Settlement of subsidiary leaving the group 2 724 ‐3 731 ‐1 007
Other changes 99 71 170
Transactions with a minority shareholders 2 2
Balance as of 31.12.2009 17 475 331 192 ‐12 442 ‐25 059 ‐28 131 2 155 8 431 ‐17 012 2 276 611
Balance as of 01.01.2010 17 475 331 192 ‐12 442 ‐25 059 ‐28 131 2 155 8 431 ‐17 012 2 276 611 Changes in equity capital in the 1st quarter of 2010, including 24 ‐45 ‐5 347 14 702 0 0 4 166 0 13 500
Buy‐back to redeem own shares ‐5 347 ‐5 347
Re‐booking of financial result to equity capital 0
Total revenue for 1st quarter of 2010 24 238 14 702 4 166 19 130
Settlement of subsidiary leaving the group 0
Other changes ‐283 ‐283
Transactions with a minority shareholders 2 2
Balance as of 31.03.2010 17 475 331 216 ‐12 487 ‐30 406 ‐13 429 2 155 8 431 ‐12 846 2 290 111
16
thousands PLN
CONSOLIDATED CASH FLOW ACCOUNT continued
1st qtr 2010 1st qtr 2009 Year 2009
A. Cash flows from operating activities
I. Net profit 238 ‐5 338 5 422
Income tax ‐3 505 127 4 341
II. Profit before tax ‐3 267 ‐5 211 9 763
III. Total adjustments 6 791 31 340 136 129
1 Minority profit (loss) 0 0
2 Depreciation 9 522 10 340 41 024
3 Currency translation gains (losses) ‐723 2 497 1 106
4 Interest and profit sharing (dividend) 5 943 5 576 16 669
5 Profit (loss) on investment activities ‐4 882 58 ‐485
6 Change in provisions 25 184 20 622 2 213
7 Change in inventory 20 664 23 250 16 872
8 Change in receivables 5 546 7 581 7 378
9
Change in short‐term liabilities excluding credits and loans ‐59 253 ‐58 708 24 394
10 Change in prepayments and accruals ‐2 751 ‐6 012 ‐3 463
11 Other adjustments 10 164 26 167 39 925
12 Income tax paid ‐2 623 ‐31 ‐9 504
III. Net cash flows from operating activities (I+/‐II) ‐ indirect method 3 524 26 128 145 892
B. Cash flows from investment activities
I. Inflows 176 443 3 816
1. Disposal of intangible and tangible fixed assets
176 313 3 816
2.
Disposal of investments in real property and in intangible assets
3. From financial assets, including: 130 0 0
a) in subsidiaries and affiliates 0 0 0
‐ sale of financial assets
‐ dividend and profit sharing
‐ repayment of long‐term loans
‐ interest
‐ other inflows from financial assets
b) in other entities 130 0 0
‐ sale of financial assets
‐ dividend and profit sharing
‐ repayment of long‐term loans
‐ interest 130
‐ other inflows from financial assets
4. Other inflows from investment activities
17
thousands PLN CONSOLIDATED CASH FLOW ACCOUNT
1st qtr 2010 1st qtr 2009 Year 2009 II. Outflows ‐9 334 ‐22 649 ‐86 172
1. Acquisition of intangible and tangible fixed assets ‐3 128 ‐4 824 ‐13 0942. Investments in real property and in intangible assets
3. For financial assets, including: 0 ‐23 381
a) in subsidiaries and affiliates 0 ‐23 381
‐ acquisition of financial assets 0 ‐23 381
‐ granted long‐term loans
b) in other entities 0 0 0
‐ acquisition of financial assets
‐ granted long‐term loans
4. Dividends and other profit sharing paid out to minority shareholders
5. Other outflows from investment activities ‐6 206 ‐17 825 ‐49 697III. Net cash flows from investment activities (I‐II) 167 109 ‐22 646 ‐85 356C. Cash flows from financial activities
I. Inflows 62 064 82 223 294 903
1. Net inflows from issuance of shares and other capital instruments and from capital contributions
2. Credits and loans 0 29 461 42 243
3. Issuance of debt securities 62 064 51 985 251 883
4. Other inflows from financial activities 0 777 777
II. Outflows ‐170 291 ‐104 829 ‐360 499
1. Acquisition of own shares 0 ‐300 ‐300
2. Dividends and other payments to shareholders
3.
Profit distribution liabilities other than profit distribution payments to shareholders
4. Repayment of credits and loans ‐109 553 ‐39 902 ‐102 699
5. Redemption of debt securities ‐53 460 ‐56 980 ‐227 147
6. From other financial liabilities 7. Payment of liabilities arising from financial leases ‐1 218 ‐1 282 ‐5 5138. Interest ‐6 060 ‐6 365 ‐24 840
9. Other outflows from financial activities III. Net cash flows from financial activities (I‐II) ‐108 227 ‐22 606 ‐65 596D. Total net cash flows (A.III+/‐B.III+/‐C.III) 62 406 ‐19 124 ‐5 060E. Balance sheet change in cash, including: ‐62 292 ‐18 761 ‐5 790 change in cash due to currency translation differences ‐114 907 460 change in cash due to consolidation 228 ‐1 270 270F. Opening balance of cash 43 527 50 263 49 078G. Closing balance of cash, including 105 933 31 139 44 018‐ of limited disposability 20 024 22 971 23 319
18
Supplementary information to interim financial statement
General information
IAS1.126 Amica Wronki S.A. is a joint stock company registered in Poland by the District Court in Poznań – Nowe Miasto and Wilda in Poznań, 8th Commercial Division of The National Court Register on 7 June 2001 (National Court Register number KRS 17514). The Parent Company's registered office is at 52 Mickiewicza Street in Wronki.
The Group's core activities according to Polish business classification PKD 2007 (2751) are: • Manufacture of electrical and gas heating appliances, electrical refrigerators and
washing machines, • Import of materials and export of ready products, • Wholesale and retail sales, • Sales of maintenance and repair services and heating media.
Composition of the Parent Company's Management Board as of 31 March 2010 was as follows:
Jacek Rutkowski ‐ President of the Management Board Andrzej Kadziński ‐ Vice President of the Management Board Wojciech Antkowiak ‐ Vice President of the Management Board Wojciech Kozikowski ‐ Member of The Board Advising on Financial Matters Marcin Bilik ‐ Member of the Board, Director of Technology and Development
Composition of the Parent Company's Supervisory Board as of balance day 31 March 2010:
Tomasz Rynarzewski ‐ Chairman of the Supervisory Board Piotr Sawala ‐ Member of the Supervisory Board Wojciech Kochanek ‐ Member of the Supervisory Board Bogna Sikorska ‐ Independent Member of the Supervisory Board Grzegorz Golec ‐ Independent Member of the Supervisory Board
Amica Wronki S.A. is the parent company of the following companies: Amica International GmbH, Gram A/S, Gram Italia srl, Sidegrove Ltd, Amica Commerce sro, Hansa Rosja ooo, Amica Far East Ltd, Inteco Business Solution Sp. z o.o, Hotel Olympic Sp. z o.o, Ares Sp. z o.o. which together form the Amica Capital Group. The parent company of Amica Capital Group is Holding Wronki S.A.
19
Description of major adopted accounting principles.
1. The basis for drawing up of this financial statement
Ordinance of the Minister of Finance of 19 February 2009 regarding current and periodic information to be submitted by issuers of securities and the conditions for recognition as equivalent of the information whose disclosure is required under the laws of a state which is not an EU member state (henceforth the "ordinance") This financial statement has been drawn up with the assumption of business continuity according to International Financial Reporting Standards (IFRS). The present report is presented based on § 83 pt. 4 of the directive, in its shortened form according to the requirements of IAS 34 „Interim financial reporting”. Report currency. Respective values of the financial statement are presented in thousands of Polish Zlotys (PLN).
2. The differences between previously published financial data for 2009 and data presented in this financial report for the same period.
All of the data presented in the present report as regarding comparative periods is consistent with the data published for those periods.
3. Accounting principles
In the interim financial report for the first quarter of 2010, the same accounting and calculation principles (policy) were applied as in the last annual financial report.
Explanatory data required by IAS34
IAS 21. Balance valuation of items expressed in foreign currency To convert cash items expressed in foreign currencies at the balance date, average currency exchange rates published by the National Bank of Poland are used. In the event that the currency sale and currency purchase rates of a leading bank (CitiBank Handlowy) was used as the closing exchange rate, the financial result would be reduced by 191,000 PLN.
IAS 34.16(b) seasonality or cyclicality of interim operations
The Group's operations are not seasonal or cyclical. Revenue on the domestic market is subject to slight fluctuation during the calendar year. Past analyses indicate that the highest level of sales of domestic appliances is observed during the 3rd quarter of each calendar year. The lowest demand for domestic appliances is observed in the period from April to June.
20
IAS34.16(c) The nature and amount of items affecting assets, liabilities, equity, net income, or cash flows that are unusual because of their nature, size, or incidence
Listed below are items affecting assets, liabilities, equity, net income, or cash flows which occurred during the reporting period:
• On 31 March 2009 an agreement for the Sale of an Organised Part of the Company was signed.
The Contract for the sale of an organised part of the business was signed in executing the duties arising from the preliminary sales agreement signed between the Company and Samsung Electronics Poland on 22 December 2009, in connection with the precedent conditions stipulated in the text of the preliminary sales agreement being fulfilled.
In accordance with the agreement, Amica has sold Samsung Electronics Poland an organised part of the Company's business involving the production of washing machines and refrigerators.
The organised part of the Company's business includes the following components: the land and buildings which form the property, the production lines, moveable property and production tools, as well as defined intellectual property rights related to it.
The employees of the organised part of the business are transferred to Samsung pursuant to art. 231 of the Labour Code.
The total sale price paid for the Organised Part of the Company ‐ apart from inventory and spare parts ‐ will be 204,425,000 PLN. The Company additionally sold the raw materials, parts and running production spares required for the manufacture and delivery of washing machines and refrigerators for the price of 15,813,000 PLN. The sale price will be paid to the Issuer in the following sums and at the following times:
o on the day the Contract for the Sale of an Organised Part of the Business is signed, Samsung pays the Company the sum of 192,124,000 PLN.
o on the day the contract is signed to transfer ownership of the undeveloped property comprising plot no. 1747 with an area of 0.0165 ha, on fulfilment of the condition that the Mayor of Town and Municipality of Wronki does not execute the Town and Municipality of Wronki's priority purchase right, Samsung pays the Company the sum of 75,000 PLN;
o four months from the day the Contract for the Sale of an Organised Part of the Business is signed, after the first phase of separation has been completed, Samsung pays the Company the sum of 18,743,000 PLN
o six months from the day the Contract for the Sale of an Organised Part of the Business is signed, after the second phase of separation has been completed, Samsung pays the Company the sum of 9,371,000 PLN
21
The book value (net) of the fixed and intangible assets sold as part of the organised part of the business stands at 198,913,000 PLN and includes fixed and intangible assets. The book value of the supplies of raw materials, parts and production in progress sold as part of the organised part of the business was 15,813,000 PLN.
• In line with the Group's Hedging Policy, it has entered into forward contracts which hedge future revenue from export sales, and whose negative fair value as of 31.03.2010 was 16,151,000 PLN and the positive fair value 294,000 PLN. Both negative and positive value from valuation of forward contracts was re‐booked to revaluation reserve capital, as a result of which, after recognition of assets for deferred tax, revaluation capital from financial instruments was 13,429,000 PLN on the balance date (during the reporting period the decrease of the negative value of capital from forward contracts hedging transactions was 14,817,000 PLN).
• In line with the company's hedging policy, the Group also entered into interest rate swaps (IRS)
o the interest rate swap transaction securing credit interest rate risk whose negative fair value as of 31.03.2010 was 772,000 PLN and due to its high effectiveness was booked as a revaluation reserve capital, which caused a reduction of equity capital after, including the assets for deferred tax of 635,000 PLN
o due to its poor effectiveness according to principles of hedge accounting, Cross‐Currency Interest Rate Swap transaction hedging credit interest rate risk and currency translation risk whose negative fair value as of 31.03.2010 was 3,957,000 PLN was booked as intended by the Company (compensation of unrealised currency translation gain/losses on balance items that are not hedged by forward contracts) in the financial result, which gave rise to a positive result for the first quarter to the sum of 1,154,000 PLN due to change in fair value of Cross‐Currency Interest Rate Swap transaction and payments made in 2010.
On the balance day of 31.03.2010 the Group had opened:
• forward contracts for a total nominal value of €63.1 million hedging planned currency cash flows resulting from revenue from export sales calculated as a surplus of revenue over the costs expressed in Euro (net currency item of the profit and loss account), to be realised during 2010‐2011 and the nominal value of contracts due for settlement in 2010 was €31.1 million and will be €32 million in 2009.
• an interest rate swap (IRS) transaction securing credit interest rate risk with termination date of the 11.03.2013, which was paid in full on 31.03.2010. The company indicated other credit as a hedged item. The balance of this credit on balance day stood at 20,500,000 PLN.
• Cross‐Currency Interest Rate Swap to hedge:
22
o a credit interest rate risk with termination date of 11.03.2013, which was paid in full on 31.03.2010
o currency translation risk for assets expressed in foreign currency which are not attributable to net currency item on profit and loss account hedged by forward contracts,
IAS34.16(d) Changes to estimates presented in previous reporting periods
Determining the balance of some of the Group's assets and liabilities requires an assessment of how uncertain events will affect these items on the balance date. Group estimates, which could significantly affect the balance of assets and liabilities refer primarily to calculation of permanent impairment loss, the economic cycle of a given fixed asset and the reserve. In this reporting period there have been no changes to estimates concerning the economic cycle of the Group's fixed assets. In the period of first quarter of 2010 when compared with the situation at the end of 2009 estimated reserves have changed as follows:
• assets from deferred taxes increased by 1,249,000 PLN • income tax reserve was reduced by 11,016,000 PLN • reserve for retirement benefits was reduced by 159,000 PLN • reserve for repairs under guarantee was increased by 1,989,000 PLN • reserve for sales bonuses increased by 16,926,000 PLN • other reserves were increased by 6,428,000 PLN
IAS34.16(e) issuances, repurchases, and repayments of debt and equity securities
During the reporting period the company issued short term bonds on the domestic market, while at the same time repurchasing bonds, which were issued earlier. These operations in the reporting period increased the Company's debt by 9,067,000 PLN when compared to the end of 2009. On the balance date Amica's liabilities associated with the issuance of bonds amounted to 79,226,000 PLN.
IAS34.16(f ) dividends paid (aggregate or per share) separately for ordinary shares and other shares
In the reporting period no dividend was paid or declared to be paid.
IAS14.16(g) revenue and results attributable to individual Group's business segments
The Capital Group divides its business into the following operating segments:
1) Heating equipment which includes range cookers, gas and electric hobs, gas‐electric freestanding as well as built‐in cookers
23
2) Refrigeration appliances, which include fridges, fridge freezers and freezers, available in many sizes, freestanding and built‐in
3) Washing appliances including semi‐automatic washing machines available in a full range of capacities and spin speed options.
4) Goods, sale of commercial goods (cooker hoods, dishwashers, microwave ovens, minor household appliances)
5) Materials and services, sales of materials and services. Operating segments which do not meet the quantity thresholds are presented under "Other", and concern the following types of activity which constitute a revenue source for the Group:
None. All the types of activity have been categorised with the main types of activity.
24
The table below presents information on the revenue, result, major non‐cash positions and assets of the operating segments.
COOKERS FRIDGES WASHING MACHINES GOODS MAT/SER Other Total
for the period from 01.01 to 31.03.2010
Revenue from external clients 151 042 32 762 26 508 63 065 31 700 0 305 077 Revenue from inter‐segmental sales
Total revenue 151 042 32 762 26 508 63 065 31 700 0 305 077
Operating sector result 39 735 29 ‐1 701 9 931 3 249 0 51 244 Other information: Depreciation 1 947 2 825 2 598 0 0 2 656 10 026 Impairment loss of non‐financial fixed assets Operating sector's assets 111 297 16 491 9 886 59 167 0 599 761 796 601 Expenditure on operating sector's fixed assets 2 139 1 990 632 0 0 1 930 6 691
for the period from 01.01 to 31.03.2009
Revenue from external clients 134 306 26 048 17 980 73 478 12 384 0 264 195 Revenue from inter‐segmental sales
Total revenue 134 306 26 048 17 980 73 478 12 384 0 264 195
Operating sector result 28 044 ‐4 231 ‐1 791 15 770 2 061 39 853 Other information: Depreciation 1 924 3 556 2 603 0 0 2 811 10 894 Impairment loss of non‐financial fixed assets Operating sector's assets 120 220 124 364 132 930 12 635 0 544 353 934 503 Expenditure on operating sector's fixed assets 167 1 171 91 0 0 1 152 2 581
for the period 01.01 to 31.12.2009
Revenue from external clients 643 712 171 614 129 736 314 753 57 752 0 1 317 567 Revenue from inter‐segmental sales
Total revenue 643 712 171 614 129 736 314 753 57 752 0 1 317 567
Operating sector result 165 457 ‐4 654 ‐8 609 59 173 7 780 0 219 147 Other information: Depreciation 7 746 14 425 10 419 0 0 10 474 43 065 Impairment loss of non‐financial fixed assets Operating sector's assets 131 612 116 638 136 122 32 496 0 523 555 940 423 Expenditure on operating sector's fixed assets 1 190 3 661 524 0 0 9 138 14 513
25
The Group's revenue from external clients and fixed assets divided geographically is as follows:
thousands PLN Country 1st qtr 2010 1st qtr 2009 2009
1 Poland 146 081 97 661 544 974 2 Germany 58 108 59 806 279 639 3 Russian Federation 33 368 32 128 153 251 4 Denmark 18 283 20 105 91 416 5 the Czech Republic 13 349 14 664 54 401 6 Sweden 10 504 7 630 66 357 7 United Kingdom 7 432 8 257 43 929 8 Finland 2 473 1 596 15 831 9 Ireland 1 785 2 114 10 340
10 Other countries 13 692 20 236 57 429 TOTAL 305 077 264 195 1 317 567
The Group's revenue from external clients and fixed assets (tangible fixed assets, intangible assets and goodwill) are presented divided geographically into areas which the Group differentiates according to the location of the external clients.
The comparison of the combined value of the revenue, result and assets of the operating sectors with analogous items from the Group's consolidated financial statement is as follows:
1st qtr 2010 1st qtr 2009 Year 2009 Revenue by sector Total revenue from operating segments 305 077 264 195 1 317 567Revenue not allocated to segments Exclusion of revenue from inter‐segmental transactions Revenue from sales 305 077 264 195 1 317 567Sector results Sectors' operating result 51 244 39 853 219 147Other revenue not allocated to segments 10 004 3 285 43 019Other costs not allocated to segments (‐) ‐57 258 ‐41 705 ‐220 622Exclusion of result from inter‐segmental transactions Profit (loss) on operating activities 3 990 1 433 41 544Financial revenue 5 991 5 247 10 438Financial costs (‐) ‐13 248 ‐11 891 ‐42 219Share in financial result of companies evaluated by equity
method (+/‐) Profit (loss) before tax ‐3 267 ‐5 211 9 763
31.03.2010 31.03.2009 31.12.2009 Sector assets Total assets from operating segments 196 840 390 150 416 868Assets not allocated to segments 599 761 544 353 523 555Exclusion of inter‐segmental transactions Total assets 796 601 934 503 940 423
In the periods covered by the consolidated financial statement, all sales revenue was allocated to operating segments.
26
Other revenue and operating costs not allocated to operating segments mainly include general administrative expenses, such as salaries and marketing.
The Group's assets which cannot be directed allocated to the business of a given operating segment are not allocated to the assets of operating segments. These include: receivables, short‐term investments (cash).
Revenue achieved by the Group from the sale of individual groups of products, services and goods and materials is as follows:
from 01.01 to 31.03.2010
from 01.01 to 31.03.2009
from 01.01 to 31.12.2009
Products Cookers 151 042 134 306 643 712 Fridges 32 762 26 048 171 614 Washing machines 26 508 17 980 129 736
Revenue from sale of products 210 312 178 333 945 062
Services Sale of heat energy 1 650 1 536 3 687 Other 3 509 1 178 6 715
Revenue from sale of services 5 159 2 714 10 394
Goods and materials Goods 63 065 73 478 314 753 Materials 26 541 9 670 47 358 Revenue from sales of goods and
materials 89 606 83 148 362 111
Revenue from sales 305 077 264 195 1 317 567
No customer exceeded 10% of the Company's turnover. IAS34.16(h) material events subsequent to the end of the interim period that have not been reflected in the financial statements for the interim period. There were no significant events after the balance date.
IAS34.16(i) the effect of changes in the composition of the entity during the interim period
In the 1st quarter of 2010, after the sale of the Refrigerator and washing Machine Factories, the Companies organisational structure was slimmed down and lost the departments directly connected with the factories sold.
IAS34.16(j) changes in contingent liabilities or contingent assets, which occurred in the period of first quarter of 2010
No changes were made to the Group's contingent liabilities during the reporting period. The Group has no contingent assets.
27
IAS16.73(e) Changes in fixed assets
Land Buildings and structures
Machines and equipment
Means of transport
Other tangible
assets:
Tangible fixed assets in
production Total
Situation as of 31.03.2010 Gross balance 2 265 57 002 111 262 80 973 97 579 3 938 353 019 Accumulated depreciation and
adjustment write‐offs 0 15 022 77 886 75 924 76 142 0 244 974
Net balance 2 265 41 980 33 376 5 049 21 437 3 938 108 045
Reclassified as fixed assets designated for sale. 4 2 210 1 997 4 211
Adjusted net balance 2 261 39 770 31 379 5 049 21 437 3 938 103 834
Situation as of 31.12.2009 Gross balance 4 143 175 341 389 327 14 347 161 669 3 687 748 513 Accumulated depreciation and
adjustment write‐offs 0 43 838 286 371 9 241 99 533 0 438 986
Net balance 4 143 131 503 102 956 5 106 62 136 3 687 309 527
Reclassified as fixed assets designated for sale. 1 878 89 170 74 029 1 311 31 904 232 198 524
Adjusted net balance 2 265 42 333 28 927 3 795 30 232 3 455 111 003
28
Land Buildings and structures
Machines and equipment
Means of transport
Other tangible assets:
Tangible fixed assets in production Total
for the period from 01.01 to 31.03.2010 Net balance on 01.01.2010 4 143 131 503 102 956 5 106 62 132 3 687 309 527 Acquisition through merging economic entities Increases (purchase, production, leasing) 103 6 328 1 816 732 2 160 11 139 Sale of subsidiary (‐) Decreases (sales, liquidation, adoption as fixed
assets) (‐) 1 874 116 237 282 298 4 047 103 119 2 104 509 679 Depreciation in accordance with the depreciation
plan (‐) 1 078 4 771 482 2 490 8 821 Depreciation write‐offs for liquidated or sold assets. 29 897 213 132 2 696 64 078 309 803 Write‐offs for impairment loss (‐) Reversal of impairment write‐offs Net translation gain (loss) (+/‐) 2 26 ‐40 104 195 287 Reclassified as fixed assets designated for sale. 4 2 210 1 997 4 211 Net balance on 31.03.2010 2 265 41 980 33 376 5 049 21 437 3 938 108 045
for the period 01.01 to 31.12.2009 Net balance on 01.01.2009 4 143 135 286 119 858 6 810 67 907 5 041 339 045 Acquisition through merging economic entities Increases (purchase, production, leasing) 520 5 489 948 3 819 9 961 20 737 Sale of subsidiary (‐) Decreases (sales, liquidation, adoption as fixed
assets) (‐) 213 2 298 1 852 2 848 11 198 18 409 Depreciation in accordance with the depreciation
plan (‐) 4 302 22 250 2 062 9 290 37 904 Depreciation write‐offs for liquidated or sold assets. 212 2 165 1 406 2 506 6 289 Write‐offs for impairment loss (‐) Reversal of impairment write‐offs Net translation gain (loss) (+/‐) ‐8 ‐144 38 ‐117 ‐231 Reclassified as fixed assets designated for sale. 1 878 89 170 74 029 1 311 31 904 232 198 524 Net balance on 31.12.2009 2 265 42 333 28 927 3 795 30 228 3 455 111 003
29
IAS38.118(e) Changes in intangible assets
Trademarks
Patents and licenses
Computer software
Costs development
work
Other intangible assets
Intangible assets in production Total
Situation as of 31.03.2010 Gross balance 24 5 298 19 592 2 954 2 802 856 31 526 Accumulated depreciation and adjustment
write‐offs 24 4 741 6 167 1 333 1 574 13 839
Net balance 0 557 13 425 1 621 1 228 856 17 687
Reclassified as fixed assets designated for sale. 0 0 0 0 0
Adjusted net balance 0 557 13 425 1 621 1 228 856 17 687
Situation as of 31.12.2009 Gross balance 24 5 477 19 755 7 471 3 104 819 36 977 Accumulated depreciation and adjustment
write‐offs 24 4 824 5 846 5 894 1 812 18 400
Net balance 0 653 13 909 1 577 1 292 819 18 250
Reclassified as fixed assets designated for sale. 77 26 7 023 416 1 879 9 421 Adjusted net balance 0 576 13 883 ‐5 446 876 ‐1 060 8 829
30
Trademarks
Patents and licenses
Computer software
Costs development
work Other intangible
assets Intangible assets in
production Total for the period from 01.01 to 31.03.2010 Net balance on 01.01.2010 0 730 13 935 8 600 1 708 2 698 27 671 Acquisition through merging economic entities Increases (purchase, production, leasing) 0 159 2 011 28 251 2 449 Sale of subsidiary (‐)
Decreases (sales, liquidation, adoption as intangible assets) (‐) 267 114 13 551 692 2 093 16 717 Other changes (reclassification, transfer, etc.) Revaluation to fair value (+/‐) Depreciation in accordance with the depreciation
plan (‐) 113 450 580 62 1 205 Depreciation write‐offs for liquidated or sold
assets. 196 89 5 141 282 5 708 Write‐offs for impairment loss (‐) Reversal of impairment write‐offs Net translation gain (loss) (+/‐) 11 ‐194 ‐36 ‐219 Reclassified as fixed assets designated for sale. 0 Net balance on 31.03.2010 0 557 13 425 1 621 1 228 856 17 687
for the period 01.01 to 31.12.2009 Net balance on 01.01.2009 0 1 221 12 926 10 373 1 994 2 322 28 836 Acquisition through merging economic entities Increases (purchase, production, leasing) 229 2 730 282 4 384 7 625 Sale of subsidiary (‐)
Decreases (sales, liquidation, adoption as intangible assets) (‐) 1 596 5 075 215 19 4 008 10 913 Other changes (reclassification, transfer, etc.) Revaluation to fair value (+/‐) Depreciation in accordance with the depreciation
plan (‐) 693 1 581 2 042 259 4 575 Depreciation write‐offs for liquidated or sold
assets. 1569 5 038 197 6 804 Write‐offs for impairment loss (‐) Reversal of impairment write‐offs Net translation gain (loss) (+/‐) ‐103 5 ‐8 ‐106 Reclassified as fixed assets designated for sale. 77 26 7023 416 1879 9 421 Net balance on 31.12.2009 0 653 13 909 1 577 1 292 819 18 250
31
IFRS 7.8 Financial asset and liabilities categories
31.03.2010 31.03.2009 31.12.2009
Financial assets valued by their fair market price by a financial result, including:
‐For trading, including:
‐Trade derivatives
Financial assets available for sale 56 048 56 048
Derivatives recognised in financial assets and allocated as hedging instruments – hedge accounting 1 568
Loans granted and own receivables, including: 271 924 268 171 235 206
‐Loans granted 1 910 1 515 1 909
‐Short‐term receivables as financial instruments 270 014 266 656 233 297
Non‐IAS instruments, including 109 779 39 725 66 132
Tax receivables 2 697 7 652 21 342
Cash 106 941 31 932 44 649
Others 141 141 141
Total assets by category 437 751 307 896 357 386
Financial liabilities valued by their fair market price by a financial result. 0 0 5 111
‐For trading, including: 3 957 5 111
‐Trade derivatives 3 957 5 111
Liabilities from derivatives allocated as hedging instruments ‐‐ hedge accounting 20 831 134 195 34 729
Other liabilities 350 431 463 860 533 488
‐ Short‐term liabilities as financial instruments 184 245 175 915 268 651
‐ Liabilities from credits and issuance of debt securities 166 186 287 945 264 837
Non‐IAS instruments, including 46 502 32 010 25 541
‐Tax liabilities 37 644 22 021 15 402
‐ Liabilities from financial leasing agreements 8 858 9 989 10 139
Total financial liabilities 417 764 630 065 593 758
Liabilities reclassified as items for sale 51 96 776
32
IFRS 7.20 a) b) c) d) Income, costs, profits and losses from financial assets and liabilities. 1st qtr 2010 1st qtr 2009 Year 2009
Revenue, costs, profits and losses concerning financial assets
Loans granted and own receivables, including: 367 0 0
loans granted ‐‐ interest obtained Short‐term receivables as financial instruments ‐‐ interest
obtained 367 0 0
Cash ‐ interest 406 250 790
Revenue, costs, profits and losses concerning financial liabilities
Loans obtained ‐ interest Financial liabilities valued by their fair market price by a financial result, including: 1 097 ‐3 871 2 216
For trading, including: 1 097 ‐3 871 2 216
Trade derivatives ‐ revenue 1 097 3 127
Trade derivatives ‐ cost ‐3 871 ‐911
Hedging derivatives ‐5 432 ‐16 592 ‐28 146
Hedging derivatives ‐ revenue 0 161 3 273
Hedging derivatives ‐ costs ‐5 432 ‐16 753 ‐31 419
Hedging derivatives ‐ ineffective ‐984 0 ‐14878
Hedging derivatives ‐ ineffective ‐ revenue 132
Hedging derivatives ‐ ineffective ‐ costs ‐984 ‐15 010
Loans obtained ‐ interest
Short‐term liabilities as financial instruments ‐‐ interest paid ‐87 ‐5 ‐157Liabilities from credits and issuance of debt securities ‐‐ interest paid ‐5 271 ‐5 151 ‐19 392
Liabilities associated with factoring services ‐ interest costs ‐435 ‐559 ‐2 725
Liabilities from financial leasing ‐‐ interest cost ‐246 ‐378 ‐1 136
33
Inventory IAS 2.36(b) IAS 1.75(c) 31.03.2010 31.03.2009 31.12.2009 Materials 46 018 59 495 64 092Semi‐finished products and production in progress 4 506 10 226 6 341Finished products 72 234 76 854 74 149Goods 28 068 19 205 27 071Advance payments received for deliveries 898 411 734Total 151 723 166 191 172 387
Short‐term receivables 31.03.2010 31.03.2009 31.12.2009 a) from subsidiaries and affiliates 14 619 0 15 106 ‐ from deliveries and services 14 619 0 15 106b) from other entities 270 413 313 570 252 493 ‐ from deliveries and services 267 116 293 055 230 599 ‐ from tax, customs, social security and other benefits 2 697 7 652 21 342 ‐ other receivables 600 12 863 552
Gross short‐term receivables, total 285 032 313 570 267 599
c) allowance for uncollectible accounts 12 321 39262 12960
Net short‐term receivables, total 272 711 274 308 254 639
Receivables from deliveries and services ‐ maturing after balance date: Receivables from deliveries and services 31.03.2010 31.03.2009 31.12.2009
up to 1 month 74 234 109 046 88 792
1 to 3 months 119 482 67 815 82 464
3 to 6 months 28 342 15 759 9 308
6 months to 1 year 11 124 18 476 1 830
more than 1 year 0 926 802
overdue receivables 60 874 101 548 84 403
Gross receivables 294 056 313 570 267 599
allowance for uncollectible accounts 12 321 39 262 12 960
Total 281 735 274 308 254 639
34
IAS 1.51, 52 Division of other liabilities into short- and long-term (apart from short‐ and long‐term credit): Other liabilities 31.03.2010 31.03.2009 31.12.2009
Long term liabilities 11 498 49 947 10 143
‐ liabilities from leasing agreements 4 360 5 101 5 037
‐ other liabilities, derivative financial instruments, shares in affiliates 7 138 44 846 5 106
Short term liabilities 319 306 332 016 388 937
‐ liabilities from subsidiaries and affiliates 1 175 1 165 1 081
‐ liabilities from other entities 169 704 157 352 250 262
‐ regulatory liabilities 37 644 22 021 15 402
‐ liabilities from remuneration 9 677 8 138 7 917
‐ other liabilities; leasing, derivative instruments, loans form affiliates 18 191 94 384 39 835
‐ issuance of debt securities 79 226 39 997 70 159
‐ other liabilities 3 689 8 959 4 276
‐ advance payments for deliveries 5
Total 330 804 381 963 399 080
Liabilities from deliveries and services according to due dates:
Liabilities from deliveries and services 31.03.2010 31.03.2009 31.12.2009
up to 1 month 75 729 70 820 121 373
1 to 3 months 67 187 38 135 79 860
3 to 6 months 92 11 68
6 months to 1 year 14 47 8
more than 1 year 20 73 24
overdue liabilities 27 837 49 431 50 010
Total 170 879 158 517 251 343
IAS 32.63(b) Agreed deadlines for repayment of credits and loans (by payment date of the last instalment): 31.03.2010 31.03.2009 31.12.2009
up to 12 months 55 160 108 746 85 544
up to 3 years 31 800 87 331 66 781
up to 5 years 51 871 42 353
Including credits associated with assets designated for sale; 95 837
Total 86 960 247 948 194 678
35
IAS 1.93 Costs by type
Costs by type 1st qtr 2010 1st qtr 2009 Year 2009
Depreciation of fixed assets and intangible assets 10 026 10 894 43 605
Use of materials and energy 129 735 120 079 610 288
Third‐party services 14 727 12 340 77 385
Taxes and fees 3 628 6 309 4 784
Salaries 30 173 27 401 108 718
Cost of employee benefits 7 988 7 731 22 195
Other costs by type 16 708 7 403 111 336
Total costs by type 212 985 192 157 978 311
Change in product inventory 13 768 8 857 8 985
Cost of products manufactured for own needs ‐676 ‐864 ‐6 075
Cost of sales (negative) ‐25 660 ‐27 597 ‐118 120
General administrative expenses (negative) ‐40 749 ‐29 352 ‐148 966
Cost of manufacturing of products sold 159 668 143 201 714 135
Internal cost of goods and materials sold 76 374 64 284 296 946
Other remaining operating revenue
1st qtr 2010 1st qtr 2009 Year 2009
Other operating revenue 4 137 3 279 17 575
‐ bonuses received on purchases 152 788 5 567
‐ subsidies to fixed assets 783 752 3 280
‐ reimbursement of international VAT payments 5 439 520
‐ compensation received 18 35 1 028
‐ disposal of fixed assets
‐ income from additional warranty 29 10 110
‐ recycling 77
‐ dissolved reserves 230 54
‐ re‐invoicing 42 165
‐ returned goods 957
‐ revenue from bill of exchange
‐ surplus on inventory 1 574 1 596
‐ leasing of investments 48 118 428
‐ other items 1 486 665 4 035
36
Other operating costs 1st qtr 2010 1st qtr 2009 Year 2009
Other operating costs 8 640 1 535 40 561
‐ replacement of faulty equipment 393 260 2 385
‐ shortages and damage 1 060 2 159
‐ grants 165 142 412
‐ compensation for former employees 104
‐ inventory scrapping 622 392 2 665
‐ liquidation of fixed assets 0
‐ recycling 881
‐ penalties and fines 8 54 240
‐ registered receivables 669 277 29 633‐ subsidies for fixed assets 4 596 0 re‐booked to revenue of previous periods ‐ depreciation and tax on fixed property and long‐term investments long‐term investments 250 249 1 003
‐ other operating costs 877 161 1 079
Transactions with subsidiaries
IAS1.126(c) IAS24.12 Amica Wronki is controlled by Holding Wronki, owning 36.55% of Amica Wronki SA shares. The remaining shares are owned by many shareholders, including employees. The holding entity of the highest order is a natural person who owns (directly and indirectly) 95% of shares in Holding Wronki S.A.; This entity does not publish financial reports available to the public. IAS27.40Subsidiaries subject to consolidation:
Name and country of the subsidiary's registered office
% of owned shares in the subsidiary (directly)
Core business
Gram A/S, Denmark 100,00 Trade in Amica products in Scandinavia Gram Italia 100,00 Commerce
Amica Commerce, the Czech Republic
100,00 Trade in Amica products in the Czech Republic and Slovakia
Sidegrove Holdings Ltd, Cyprus 100,00 Provision of services Hansa Russia 100,00 Commerce
Amica International 100,00 Commerce Amica Far East 100,00 Commerce and provision of services
Hotel Olympic Sp. z o.o. 100,00 hospitality and catering services Inteco Sp. z o.o. 80,00 Consulting and IT services
All consolidated subsidiaries prepared the financial statements for 31.03.2010.
37
IAS24.17.22 entities affiliated with Amica according to the provisions of IAS 24: Entities affiliated with the Parent Company include key management staff, subsidiaries subject to consolidation and subsidiaries excluded from consolidation, as well as other affiliated entities among which the Group includes entities controlled by the owners of the Parent Company. The other major entities affiliated with the Group include:
• Consolidated subsidiaries: Amica International, Gram, Hansa, Amica Commerce, Gram Italia, Sidegrove, Hotel Olympic, Inteco Business Solutions, Amica Far East
• Unconsolidated subsidiaries Ares • Entities affiliated by key personnel: Stowarzyszenie Kultury Fizycznej, Holding Wronki, KKS Lech
Poznań, Invesco, Marcelin Management • Key staff of Amica Wronki (members of management)
Transactions with affiliated entities conducted in the first quarter of 2010 were of commercial character and were entered into on market conditions and these transactions resulted from current operational activities conducted by these companies. The largest by value group of typical transactions with affiliated entities were operations associated with the sales of products produced by Amica Wronki S.A. and purchase of materials necessary to manufacture these products . List of commercial transactions with affiliated entities.
Revenue Costs
Name of the subsidiary 31.03.2010 31.03.2009 31.12.2009 31.03.2010 31.03.2009 31.12.2009 Holding Wronki SA 0 1 0 45 90
KKS LECH Poznań 206 12 1 232 757 63 1 961
Sports club 6 34 0 0
Total 212 12 1267 757 108 2051
receivables Liabilities
Name of the subsidiary 31.03.2010 31.03.2009 31.12.2009 31.03.2010 31.03.2009 31.12.2009 Holding Wronki SA 0 0 0 45 0
KKS LECH Poznań 3 769 4 449 124 63 0
Sports club 7 19 0 0
Invesco 10 724 10 599 0 0
Marcelin Management 23 39 0
Total 14 523 0 15 106 124 108 0 There were no allowances for uncollectible accounts from subsidiaries and affiliates, and thus no costs for this item were included in the profit and loss account. The balance of receivables as of 31.03.2010 due to loans granted to subsidiaries was 2,249,000 PLN, including interest on granted loans owed to the Company at the amount of 339,000 PLN.
38
IAS37.14a Recognised reserves. According to the provisions of the Act on recycling of used electrical and electronic appliances, the Group is obliged to organise and finance recycling of used household appliances. The obligation to create a reserve to finance these activities results from paragraph 14 lit. a IAS 37. Interpretation IFRIC 6 „Liabilities arising from Participating in a Specific Market – Waste”, as the agreed interpretation of the provisions of paragraph 14 lit. a IAS 37. IFRIC 6 concludes that the event that triggers liability recognition an obligation to create the reserve is participation in the market during a measurement period. Consequently, the obligation resulting from the cost of disposal of used household equipment does not arise at the moment when these products are produced or sold. Since the obligation associated with used household equipment is related to participation in the market during the measurement period and not with production or the sale of used products to be disposed of, the obligation arises only in the event of participation in the market during the measurement period and lasts as long as participation in the market. Determination of the time of occurrence of an event triggering the obligation may be independent of the specific period during which action is taken to manage and waste and during which the related costs are incurred. Obligations resulting from the above regulations the company transferred to ElektroEko Organizacja Odzysku Sprzętu Elektrycznego i Elektronicznego S.A. by signing an agreement on 29 May 2006. Pursuant to this agreement, the Company incurred costs of 639,000 PLN associated with organising and collection of used appliances during the 1st quarter of 2010 (for the 12 month period of 2009 the amount is 5,227,000 PLN, for the 1st quarter of 2009 ‐ 964,000 PLN). So far the Group has not created a reserve for future liabilities from this obligation, since it was not possible to reliably estimate the amount of this liability according to the provisions of paragraph 14 lit. c IAS 37. The Group conducts analyses of available market data concerning the cost of disposal and recycling and is planning to create the reserve in future periods.
Other information
The position of the Board concerning the possibility of meeting the previously released forecasts for the current financial year.
The Group has not published financial forecasts for the current financial year. Shareholders owning directly or indirectly at least 5% of the total number of voting rights in the General Shareholders' Meeting of Amica Wronki S.A.
Shareholder's name Number of shares % of owned share capital of Amica
Number of voting rights
% of total number of voting rights
Holding Wronki 3.194.144 36,55 6 084 489 52,23
39
Shares owned by the management of Amica Wronki
Shares owned by the Members of the Board of Amica Wronki S.A.:
Owners name Number of shares as of
31.12.2009 Acquisition (disposal) of
shares Number of shares as of
31.03.2010
Andrzej Kadziński 4.600 0 4.600
Shares owned by the Members of the Supervisory Board of Amica Wronki S.A.:
Owners name Number of shares as of
31.12.2009 Acquisition (disposal) of
shares Number of shares as of
31.03.2010
Tomasz Rynarzewski 400 0 400
A presentation of the main proceedings being conducted by courts, the appropriate authority for arbitration or public administration bodies is outlined below.
40
item Parties to the proceedings Date claim made / debts
declared
Subject of the litigation Document reference Value of the subject of
litigation
Court / Bailiff
1. Amica Wronki S.A. vs Irena
Kałamaga and Zdzisław
Kałamaga
02.03.2006 payment I C 1061/2006 30,000,000 PLN Regional Court in Poznan, Appeal Court in
Poznan, Supreme Court
1A The District Court in Poznan issued a repayment order in execution proceedings from a bill of exchange, on the basis of which executive proceedings are under way against the debtors. In spite of the
defendants' objections to the repayment order and their appeal against the judgement of the Regional Court in Poznan, the repayment order became legally binding in accordance with the ruling of the
Appeal Court in Poznan of January 16th 2008. The debtors lodged an annulment claim, which was rejected by the Supreme Court ‐ this decision is final and the case was closed.
1D Property in Gorzów Wlkp. – proceedings are being conducted by Court Bailiff for the District Court in Gorzów Wlkp. Jadwiga Staszyńska. On 22.04.2009 property was sold at a warrant sale auction for
544,425.00 PLN The Court assets obtained from the public auction. Amica Wronki S.A. received around 380,000 PLN. In these proceedings, the legal costs adjudged for Amica Wronki S.A.'s attorney in the case
of the debtors' action for the issue of bills of exchange were still to be executed.
1E Property in Dębno Lubuski – proceedings conducted by Court Bailiff for the District Court in Myślibórz Zdzisław Więcławik. The property was sold for a sum of 400,000 PLN. On September 14th 2009, a decision
was issued to allocate the property, and a draft plan was submitted to the court for dividing it up, which has been confirmed. The creditor's attorney has informed the Bailiff of Amica Wronki S.A.'s recovery in
full of the debtors' liabilities. The case is over, the costs of the proceedings have been recovered.
1F Property in Chwalęcice – proceedings are being conducted by Court Bailiff for the District Court in Gorzów Wlkp. Jadwiga Staszyńska. An undeveloped plot of land was sold for 90,000 PLN. The creditor's
attorney has informed the Bailiff of Amica Wronki S.A.'s recovery in full of the debtors' liabilities. The costs of proceedings in this matter have still to be recovered (the Bailiff has received the money, which the
creditor should receive in the next few days).
1G Property in Chwalęcice (the debtors' house) – proceedings are being conducted by Court Bailiff for the District Court in Gorzów Wlkp. Jadwiga Staszyńska. The date of the second public auction was set as
30.09.2009. The auction proved unsuccessful and the creditor has not applied for the property to be seized. The creditor's attorney has informed the Bailiff of Amica Wronki S.A.'s recovery in full of the
debtors' liabilities. The costs of proceedings in this matter have still to be recovered.
1H Property in Myślibórz – proceedings are being conducted by Court Bailiff for the District Court in Myślibórz Lech Walkowiak. The first public auction of the property set for 15.05.2009 did not come into effect,
and the creditor has not applied for a second date to be set. The creditor's attorney has informed the Bailiff of Amica Wronki S.A.'s recovery in full of the debtors' liabilities. The costs of the enforcement
procedures for the Kałamagas have been paid by FOX Sp. z o.o. – proceedings closed.
1I Property in Międzyrzecz – proceedings are being conducted by Court Bailiff for the District Court in Międzyrzecz Andrzej Woźniak. The Court dismissed the debtor's objection to the description and appraisal of
the estate ‐ the ruling is legally binding The debtor has not applied for a date to be set for a public auction. The creditor's attorney has informed the Bailiff of Amica Wronki S.A.'s recovery in full of the debtors'
liabilities and the necessity to recover the costs from this case.
41
1J Property in Świdwin ‐ proceedings are being conducted by Court Bailiff for the District Court in Białogard Dariusz Markocki. On 19.08.2009 a description and valuation of the property was prepared. The
creditor's attorney has informed the Bailiff of Amica Wronki S.A.'s recovery in full of the debtors' liabilities. The costs of proceedings in this matter have still to be recovered.
2. Amica Wronki S.A. vs Drewex‐
Meble Sp. z o.o.
22.06.2006 payment I Nc 753/05 27,893.73 PLN Court Bailiff for area 8, Kielce Regional Court
The Bailiff has taken steps aimed at recovering the debtor's receivables. Property has been seized and auctioned. Information received by telephone suggests that the debtor is paying his debt in instalments,
which the Bailiff is paying into the creditor’s account.
3. Amica Wronki S.A. vs Krzysztof
Ziemski FPHU WROCAR 28.11.2007 payment IX GNc 665/07 1,082,474 PLN
Regional Court in Poznan, Court Bailiff for
Poznań Grunwald and Jeżyce
The order is legally binding. A partial cession of the debts has been made to Jatex Finanse Ltd.
4. Amica Wronki S.A. vs Joanna
Szymkowska, Małgorzata
Szymkowska
05.09.2007 Eviction proceedings I C 335/07/3 1,000 PLN District Court in Szamotuły, Court Bailiff for
the District Court in Szamotuły
The Court ordered eviction, the ruling is legally binding. The Bailiff is conducting executive (eviction) proceedings. On 20.10.2009 the Bailiff abandoned the eviction, on 30.10.2009 a complaint was submitted
about the bailiff's inaction. In a brief of 30 December 2010, the court bound the bailiff to continue the eviction proceedings. The bailiff set the date for the next eviction action as 18.06.2010.
5. Amica Wronki S.A. vs Duo Net
sp. z o.o. based in Warsaw 22.10.2008 payment IX GNc 584/08/4 319,757.88 PLN
Regional Court in Poznan, Court Bailiff for
the District Court in Wielun Halina Pagacz
On 31.10.2008 the court issued a repayment order. On the basis of the order, the creditor has commenced proceedings to secure the claims. As a result of the order being made legally binding, the court
added an enforcement clause on 1.12.2008. The creditor is conducting executive proceedings with regard to property belonging to the debtor. The creditor has also been granted an enforcement clause for a
notarial deed.
6. Amica Wronki S.A. vs Melgaz ‐
A. Pogorzelczyk, A. Barłożek
General Partnership
31.03.2009 payment IX GNc 2,733,934.79 PLN Regional Court in Poznań, 1st Civil Division
The court office has filed a petition to pay in execution proceedings out of a bill of exchange against the company and partners. The repayment order against the debtors' is legally binding, as the company has
declared bankruptcy. Executive proceedings have been undertaken at the creditor's request. The Bailiff has informed the creditor's attorney that the proceedings are ineffectual. By ruling of 30.12.2009 the
proceedings were closed. On 7 December, the creditor filed an application to disclose the debtors' assets. Proceedings against the debtor A. Barłożek to declare the value of his estate ‐ the court has called on
the creditor to indicate the debtor's current address. The debtor has appealed to the Interior Ministry to reveal the current address from the personal data base; there are no details of the present place of
abode of the debtor. Proceedings have been suspended. Proceedings against the debtor A. Pogorzelczyk to declare the value of his estate ‐ the court has issued a rejection of the application, the creditor has
42
objected again. After establishing the value of the debtor's estate, the creditor will lodge a further application to have enforcement proceedings begun.
Composition and bankruptcy proceedings 1. Amica Wronki S.A. vs. Ares Sp. z
o. o. in bankruptcy insolvency. payment V GUp 8/05, V GU 47/05 31,900,000 PLN
District Court in Gorzów Wielkopolski 5th
Commercial Division
The District Court in Gorzów Wielkopolski issued a ruling on 24.04.2008 changing the contents of the ruling regarding the declaration of bankruptcy, with the possibility of negotiating an arrangement for the
bankruptcy declaration to include the liquidation of property. Amica Wronki has a sum of 1,418,710 PLN entered on the debt list and a total of 367,017.23 PLN in interest. A mortgage has been placed on Ares’
property to a sum of PLN 30,000,000 to safeguard the debts from a bill of exchange guaranteed by Ares and issued by Mars for a sum of PLN 15,000,000 – the mortgage registration is legally binding. In June
2009 a sum of 10,000,000 PLN was allocated for division among the creditors, including 439,500.28 PLN for Amica Wronki. Amica Wronki S.A. reported another receivable of 50,000 PLN, which was recognised
on the list of receivables. In the company's bankruptcy proceedings, property of the bankrupt company was sold for a total of around 8,000,000 PLN., and the receiver has prepared and announced a second
plan to divide this. Amica Wronki S.A. has objected to the second division plan in the scope in which it affects part of the receivables. The Judge Commissioner ordered the receiver to pay out assets from the
second division, apart from the receivables to which objections have been raised. The objections have not yet been considered. In connection with Amica Wronki S.A.'s purchase of shares in the insolvent
company, an Extraordinary General Shareholders' Meeting of the Partners passed a resolution to raise the capital of the Company by a sum 15,520,000 PLN, this sum to be allocated by the insolvent Company
to pay the creditors included on the list of creditors. The receiver has prepared a 3rd final division plan, which has been challenged by Amica Wronki S.A. As of 31.12.2009 the creditor's objections to the 2nd
and to the final plan have not yet been considered. The commercial court in Gorzów Wlkp. in a ruling of 3.03.2010 considered the debtor's complaint about the Judge Commissioner's ruling dismissing the
objections to the partial 2nd division plan and the 3rd division plan, and rejected them. On 4 March the Judge Commissioner accepted the 2nd partial division plan and the 3rd final division plan for the assets
of the bankrupt Ares Sp. z o.o. Amica Wronki S.A., from the realisation of the 3rd final division plan, received a sum of 963,915.86 PLN.
3. Melgaz ‐ A. Pogorzelczyk, A.
Barłożek General Partnership 19.06.2009 payment XII GUp 92/09 2.779.122,12
District Court in Szczecin 12th Commercial
Division
18 May 2009 bankruptcy of the company was announced. On 19 June, the creditor claimed its receivables. Bankruptcy proceedings are under way. There is still no list of creditors. Amica Wronki S.A.'s liability
was included in full (2,779,122.12 PLN) on the list of liabilities in category 4. In a ruling of 21 December 2009 the Judge Commissioner approved the list of creditors submitted by the receiver on 03 November
2009.
43
Proceedings against Amica Wronki S.A. 1.
Katarzyna Kałamaga vs Amica
Wronki S.A. 25.04.2008
Relief from execution
proceedings I C 374 428/08 227,950 PLN
Regional Court in Szczecin 1st Civil Division,
Court Bailiff for the District Court in Kamien
Pomorski Artur Masojć
The Court released the seized artworks from the execution proceedings. Appeal Court overruled the judgement of releasing the seized artworks from the execution proceedings. Execution proceedings were
conducted against Katarzyna Kałamaga for reimbursement of costs in the amount of 27,451 PLN; the proceedings have closed.
2. Mariusz Markiewicz vs Amica
Wronki S.A.
recognition of termination
of an employment contract
as ineffectual
KM 631/09 3,120 PLN
District Court in Szamotuły, Labour Division,
Court Bailiff for the District Court in
Szamotuły Witold Stachura
On October 6th 2008 the Court dismissed the action. The Creditor is implementing recovery proceedings for legal costs of 593 PLN.
3. Domator vs Amica Wronki S.A. 31.07.2009 payment V GC 270/09 599 PLN
District Court in Konin 5th Commercial
Division
On 28.09.2009 Amica Wronki S.A.'s attorney submitted a response to the action. On 09.10.2009 the court issued a default judgement V GC 270/09 upr. On 22.10.2009 objections were filed to the default
judgement. Court hearing was set for 5 January 2010. On 9 February 2010 the parties signed an agreement, by which Amica will pay Domator 599 PLN without interest or costs; the parties are at the same
time negotiating with regard to implementing claims proceedings. The court has closed the proceedings.
4. Locum S.A. vs Amica Wronki
S.A. 28.12.2009 for payment IX GC 700/09/16 109,063 PLN
Regional Court in Poznań, 9th Commercial
Division
On 28.12.2009 Amica Wronki S.A. received a petition to pay Amica Wronki S.A.'s attorney submitted a response to the action. The court set the date for the next hearing as 11.03.2010. At this hearing the
Court questioned the witness for the plaintiff's side. The court set the date for the next hearing as 28. 06. 2010.
5. Justyna Smolarkiewicz vs Amica
Wronki S.A. 16.04.2009
for damages, compensation
and pension VI P 30/09 119,600 PLN
Regional Court in Poznań, 4th Labour
Division
The case concerns a former employee of Amica Wronki S.A. seeking damages for an accident at work. Proceedings are under way; the date of the next hearing will be set after an opinion has been received
from the expert witness regarding orthopaedics.
Top Related