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, 2014 prepared in accordance with International Financial Reporting Standards Warsaw, March 23, 2015
1. Selected financial data 2014 2013 2014 2013 PLN 000 PLN 000 EUR 000 EUR 000 I. Revenues from sales of products and goods 15 899 18 147 3 795 4 309 II. EBIT 201-2 138 48-508 III. EBITDA 1 2 401 842 573 200 IV. Gross profit (loss) - 59-2 196-14 - 521 V. Net profit (loss) - 46-1 869-11 - 444 VI. Cash flows from operating activities - 320 5 244-76 1 245 VII. Cash flows from investing activities - 335-4 680-80 - 1 111 VIII. Cash flows from financing activities 554-677 132-161 IX. Total net cash flows - 101-113 - 24-27 X. Weighted average number of shares 2 485 032 2 485 032 2 485 032 2 485 032 XI. Earnings per share (PLN) - 0,02 (PLN) - 0,75 (PLN) - 0,00 (EUR) - 0,18 (EUR) 31.12.2014 31.12.2013 31.12.2014 31.12.2013 XII. Total assets 55 279 56 430 12 969 13 607 XIII. Liabilities and provisions 17 341 18 446 4 068 4 448 XIV. Long-term liabilities 11 271 7 233 2 644 1 744 XV. Short-term liabilities 6 070 11 213 1 424 2 704 XVI. Equity 37 938 37 984 8 901 9 159 XVII. Share capital 2 485 2 485 583 599 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 = 4,2110 PLN in 2013-1 EUR = 4,1893 PLN in 2014 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 = 4,1472 PLN as at December 31, 2013-1 EUR = 4,2623 PLN as at December 31, 2014 1 EBITDA increased with impairment write-offs.
2. Statement of financial position of K2 Internet S.A. ASSETS 31.12.2014 31.12.2013 NON-CURRENT ASSETS 47 288 45 585 Intangible assets (6.2.1.) 7 616 3 862 Tangible assets (6.2.2.) 4 711 5 910 Shares and interest in subsidiaries (6.2.3.) 33 449 33 954 Loans granted (6.2.4.) 252 241 Deferred tax assets (6.2.13.) 1 260 1 618 CURRENT ASSETS 7 991 10 845 Trade and service receivables (6.2.6.) 2 795 2 542 Other public receivables (6.2.6.) 393 495 Other receivables (6.2.6.) 85 81 Loans granted (6.2.4.) 4 445 7 337 Other assets (6.2.7.) 221 237 Cash and cash equivalents (6.2.8.) 52 153 AKTYWA RAZEM 55 279 56 430 EQUITY 31.12.2014 31.12.2013 Supplementary capital 37 938 37 984 2 Share capital 2 485 2 485 Share premium 12 070 12 070 Retained earnings 23 080 24 949 2 Reserve capital 349 349 Profit/loss for the year - 46-1 869 LIABILITIES 17 341 18 446 2 Long-term liabilities 11 271 7 233 2 Deferred tax provision (6.2.13.) 5 538 5 909 2 Financial lease liabilities (6.2.5.) 464 1 324 Long-term liabilities arising. bonds (6.2.9.) 5 269 - Short-term liabilities 6 070 11 213 Trade payables (6.2.10.) 1 811 3 304 Liabilities from income tax (6.2.13.) - - Other public payables (6.2.10.) 343 629 Other liabilities (6.2.10.) 241 3 223 Financial lease liabilities (6.2.5.) 1 222 1 127 Other liabilities (6.2.10.) 7 1 218 Provision for liabilities (6.2.11.) 491 71 Other equity and liabilities (6.2.12.) 1 955 1 641 Total assets 55 279 56 30 2 Amendments made as a result of adjusting the tax value of net assets being the basis for calculation of the deferred tax provision in the part relating to previous years, details in 6.2.25 of this statement.
3. Separate profit and loss account statement of K2 Internet S.A. 2014 2013 Revenues from sales of products and goods (6.2.14.) 15 899 18 147 Costs of products and goods sold (6.2.15.) - 11 366-13 426 Gross profit on sales 4 533 4 721 General and administrative costs (6.2.15.) - 4 643-6 147 Profit on sales - 110-1 426 Other net operating revenues/expenses (6.2.16.) 311-712 EBIT 201-2 138 Net financial revenues / costs (6.2.17.) - 260-58 Profit befor taxation - 59-2 196 Income tax (6.2.13.) 13 327 Net profit/los - 46-1 869 Earnings per share (PLN) (6.2.18.) - 0,02-0,75 Diluted earnings per share (PLN) (6.2.18.) - 0,02-0,75 Profit/loss for the period - 46-1 869 Other comprehensive income - - Financial assets for sale - - Cash flow hedge - - Actuarial profits/losses defined benefit pension - - Income tax for other comprehensive income - - Other total net income - - Total net income for the period - 46-1 869
4. Separate statement of cash flows of K2 Internet S.A. Cash from operating activities 2014 2013 Profit (loss) before tax - 59-2 196 Depreciation / Amortisation 2 200 2 464 Profits (losses) on interests and foreign exchange differences 207-137 Profit (loss) from investing activities - 182 513 Change in receivables (excluding income tax receivables) - 156 5 575 Change in other assets 16 301 Change in provisions 734 762 Change in short-term liabilities - 3 080-2 038 Another - - Net cash from operating activities - 320 5 244 Income tax paid - - Net cash flows from operating activities - 320 5 244 Net cash flows from investing activities Inflows 8 985 2 373 Sale of tangible fixed assets and intangible assets 653 860 Repayments of loans granted (6.2.4.) 5 523 1 504 Return of capital contributions (6.2.3.) 1 500 - Interest received (6.2.4.) 1 309 9 Outflows -9 320-7 053 Purchase of intangible assets and tangible fixed assets - 4 641-2 743 Loans granted (6.2.4.) - 3 684-3 655 Expense on subsidiaries (6.2.3.) - 995-655 Net cash flows from investing activities - 335-4 680 Cash flows from financing activities Inflows 5 000 849 Proceeds from issue of shares (6.2.9.) 5 000 849 Proceeds from loans - 4 446-1 526 Repayment of loans and credits (6.2.10.) - 2 982 - Dividends - - Financial lease instalments - 1 259-1 375 Interests - 205-151 Net cash flow from financing activities 554-677 Total cash flows Total net cash flows - 101-113 Balance sheet changes in cash and cash equivalents - 101-113 Change in cash due to exchange differences - - Cash and cash equivalents opening balance 153 266 Cash and cash equivalents closing balance 52 153
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 Profit/loss for the year Total equity As at January 1 2013 r. 2 485 12 070 9 888 3 349-24 792 3 Netprofit in 2013 r. - - - - - 1 169-1 169 As at 31.12.2013 r. 2 485 12 070 9 888 3 349-1 169 23 623 3 As at January 1 2014 r. 2 485 12 070 8 719 349-23 623 Netprofit in 2014 r. - - - - 4 801 4 801 As at 31.12.2014 r. 2 485 12 070 8 719 349 4 801 28 424 3 As a result of adjusting the tax value of net assets, being the basis for calculating the deferred tax provision in the part relating to previous years, the opening balance of retained earnings in 2013 was decreased with PLN 568 thou.