The following report presents financial data only. The full and binding version is available in Polish. K2 INTERNET S.A. Annual Financial Statement of K2 Internet S.A. for the twelve-month period ended December 31, 2012 prepared in accordance with International Financial Reporting Standards Warszawa, March 19, 2013
1 Selected financial data SELECTED FINANCIAL DATA in PLN 000 in EUR 000 2012 2011 2012 2011 I. Revenues from sales of products and goods 30 921 34 104 7 409 8 237 II. EBIT 20 867 2 400 5 000 580 III. EBITDA 22 646 3 711 5 426 896 IV. Gross profit (loss) 20 626 2 511 4 942 607 V. Net profit (loss) 16 630 1 793 3 985 433 VI. Cash flows from operating activities 1 063 3 125 255 755 VII. Cash flows from investing activities - 6 952-450 - 1 666-109 VIII. Cash flows from financing activities 6 048-3 845 1 449-929 IX. Total net cash flows 159-1 170 38-283 X. Total assets 59 692 27 835 14 601 6 302 XI. Liabilities and provisions 19 271 9 506 4 714 2 152 XII. Long-term liabilities 7 465 932 1 826 211 XIII. Short-term liabilities 11 806 8 574 2 888 1 941 XIV. Equity 40 421 18 329 9 887 4 150 XV. Share capital 2 485 2 026 608 459 XVI. Weighted average number of shares 2 199 078 2 026 000 2 199 078 2 026 000 XVII. Earnings per share (PLN) 7,56 0,88 1,81 0,21 Individual items of assets and liabilities of the statement of financial position were converted into EUR at the average NBP ((the National Bank of Poland)) rate applicable on the last day of the balance sheet period i.e.: - 1 EUR = 4,4168 PLN PLN as at December 31, 2011-1 EUR = 4,0882 PLN as at December 31, 2012 Profit and loss account and cash flow account items were converted into EUR at the rate which is an arithmetic mean of the NBP ((the National Bank of Poland)) fixed exchange rates for the last working day of each month from January to December of each financial period, i.e.: - 1 EUR = 4,1401 PLN in 2011-1 EUR = 4,1736 PLN in 2012 NIP: 951 19 83 801 REGON: 016378720 KRS: 0000059690 Kapitał zakładowy: 2.485.032,00 PLN (opłacony w całości) 2
2 Statement of financial position of K2 Internet S.A. ASSETS Note 31.12.2012 (after correction) NON-CURRENT ASSETS 45 047 10 912 10 912 Intangible assets 1 3 286 2 818 2 818 Tangible assets 2 7 067 2 639 2 639 Shares and interest in subsidiaries 5 33 298 4 867 4 867 Deferred tax assets 14 1 396 588 588 CURRENT ASSETS 14 645 16 624 16 923 Trade and service receivables 7 7 882 10 465 10 764 Other public receivables 404 238 238 Other receivables 277 477 477 Loans granted 4 5 278 4 943 4 943 Other assets 8 538 394 394 Cash and cash equivalents 9 266 107 107 Total assets 59 692 27 536 27 835 EQUITY AND LIABILITIES Note 31.12.2012 (after correction) EQUITY 40 421 18 030 18 329 Share capital 10 2 485 2 026 2 026 Supplementary capital 11 20 957 14 161 14 161 Reserve capital 11 349 349 349 Own shares - - 0 Previous years profit/loss - - 0 Profit/loss for the year 11 16 630 1 494 1 793 LIABILITIES 19 271 9 506 9 506 Long-term liabilities 7 465 932 932 Deferred tax provision 14 5 445 642 642 Financial lease liabilities 3 2 020 290 290 Short-term liabilities 11 806 8 574 8 574 Trade payables 6 620 3 393 3 393 Income tax payables - 401 401 Other public payables 40 1 317 1 317 Other liabilities 2 374 419 419 Financial lease liabilities 3 1 294 426 426 Other liabilities 12 529 146 146 Provision for liabilities 12 207 941 941 Other equity and liabilities 12 742 1 531 1 531 Total equity and liabilities 59 692 27 536 27 835 NIP: 951 19 83 801 REGON: 016378720 KRS: 0000059690 Kapitał zakładowy: 2.485.032,00 PLN (opłacony w całości) 3
3 Separate profit and loss account statement of K2 Internet S.A. Note 01.01.2012-31.12.2012 (after correction) Revenues from sales of products and goods 16 30 921 33 735 34 104 Costs of products and goods sold 17-24 659-23 971-23 971 Gross profit on sales 6 262 9 764 10 133 Selling costs - - - General and administrative costs - 8 110-7 824-7 824 Profit on sales - 1 848 1 940 2 309 Other net operating revenues/expenses 18 22 715 91 91 EBIT 20 867 2 031 2 400 Net financial revenues / costs 19-241 111 111 Profit befor taxation 20 626 2 142 2 511 Income tax 14-3 996-648 - 718 Net profit/los 16 630 1 494 1 793 Earnings per share (PLN) 20 7,56 0,74 0,88 Diluted earnings per share (PLN) 7,56 0,74 0,88 01.01.2012-31.12.2012 (po korekcie) Profit/los for the period 16 630 1 494 1 793 Other comprehensive income - - - Income tax for other comprehensive income - - - Total net income for the period 16 630 1 494 1 793 NIP: 951 19 83 801 REGON: 016378720 KRS: 0000059690 Kapitał zakładowy: 2.485.032,00 PLN (opłacony w całości) 4
4 Separate statement of cash flows of K2 Internet S.A. Cash from operating activities 01.01.2012-31.12.2012 (po korekcie) Profit (loss) before tax 20 626 2 142 2 511 Adjustments for: Depreciation / Amortisation 1 779 1 312 1 312 Profits (losses) on interests and foreign exchange differences - 132-306 - 306 Profit (loss) from investing activities - 132-65 - 65 Change in inventories - - - Change in receivables (excluding income tax receivables) - 1 275-895 - 1 264 Change in provisions - 1 086-235 - 235 Change in short-term liabilities 3 043 1 684 1 684 Other (Item description in note 18) - 21 760 - - Net cash from operating activities 1 063 3 637 3 637 Income tax paid - - 512-512 Net cash flows from operating activities 1 063 3 125 3 125 Net cash flows from investing activities Inflows 2 221 3 782 3 782 Sale of tangible fixed assets and intangible assets 132 206 206 Repayments of loans granted 2 012 3 472 3 472 Interest received 77 104 104 Outflows - 9 173-4 232-4 232 Purchase of intangible assets and tangible fixed assets - 5 880-2 484-2 484 Loans granted - 2 121-1 740-1 740 Expense on subsidiaries - 1 172-8 - 8 Net cash flows from investing activities - 6 952-450 - 450 Cash flows from financing activities Inflows 7 417 672 672 Proceeds from issue of shares 5 461 - - Proceeds from loans 1 956 672 672 Outflows - 1 369-4 517-4 517 Issue of shares - - - Purchase of own shares - - - Dividends - - 4 052-4 052 Financial lease instalments - 775-415 - 415 Interests - 168-50 - 50 Other - 426 - - Net cash flow from financing activities 6 048-3 845-3 845 Total net cash flows 159-1 170-1 170 Change in cash balance 159-1 170-1 170 - change in cash balance due to foreign exchange differences - - - Cash and cash equivalents opening balance 107 1 277 1 277 Cash and cash equivalents closing balance, including: 266 107 107 - - restricted cash - 21 21 NIP: 951 19 83 801 REGON: 016378720 KRS: 0000059690 Kapitał zakładowy: 2.485.032,00 PLN (opłacony w całości) 5
5 Separate statement of changes in equity of K2 Internet S.A. Share capital Reserve capital from the sales of shares above their nominal value Reserve capital from profit distribution Reserve capital from the sales of shares to employees Own shares Previous years profit/loss Profit/loss for the year Total equity As at 1 January 2011 2 026 7 068 8 433 349-2 712-20 588 Dividend - - - 1 340 - - - 2 712 - - 4 052 Net profit in 2011 - - - - - - 1 494 1 494 Correction in 2011 - - - - - - 299 299 As at 31 December 2011 2 026 7 068 7 093 349 - - 1 793 18 329 As at 1 January 2012 2 026 7 068 7 093 349-1 793-18 329 Distribution of profits in 2011 I series share issue - - 1 793 - - - 1 793 - - 459 5 003 - - - - - 5 462 Netprofit in 2012 - - - - - - 16 630 16 630 As at 31 December 2012 2 485 12 071 8 886 349 - - 16 630 40 421 NIP: 951 19 83 801 REGON: 016378720 KRS: 0000059690 Kapitał zakładowy: 2.485.032,00 PLN (opłacony w całości) 6