AMICA SPÓŁKA AKCYJNA GROUP...4 Net profit (loss) allocated to company shareholders 146,313 108,549...

AMICA SPÓŁKA AKCYJNA GROUP

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENT FOR FOUR QUARTERS OF 2017

Legal status as at 28 February 2018

AMICA SPÓŁKA AKCYJNA GROUP Condensed Interim Consolidated Financial Statements

for four quarters of 2017 (in thousands PLN)

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Selected Consolidated Financial Data of the Capital Group ........................................................................ 4 Selected financial data of the Issuer ............................................................................................................. 5 Interim condensed consolidated statement of comprehensive income ......................................................... 6 Interim condensed consolidated balance sheet ............................................................................................. 8 Interim condensed cash flow statement ....................................................................................................... 9 Interim condensed consolidated statement of changes in equity ................................................................ 10 Additional explanatory notes ..................................................................................................................... 11 1. Overview ............................................................................................................................................. 11 2. Composition of the Parent Company's Management Board and Supervisory Board .......................... 11 3. The basis for drawing up the interim condensed consolidated financial statement ............................. 12 4. Significant Accounting Policies .......................................................................................................... 12 5. Changes in the presentation. ................................................................................................................ 12 6. Seasonality of operations..................................................................................................................... 13 7. Business combinations and acquisition of non-controlling interests ................................................... 13 8. Information concerning business segments ......................................................................................... 15 9. Revenue and costs ............................................................................................................................... 17

9.1. Other operating revenue ........................................................................................................... 17 9.2. Other operating costs ............................................................................................................... 17 9.3. Costs by type ............................................................................................................................ 17

10. Income tax ........................................................................................................................................... 18 11. Dividends paid out and proposed dividends ........................................................................................ 18 12. Property, plant and equipment ............................................................................................................. 19 13. Investment property ............................................................................................................................. 21 14. Intangible assets .................................................................................................................................. 22 15. Other assets ......................................................................................................................................... 24

15.1. Other financial assets ............................................................................................................... 24 15.2. Other non-financial assets ........................................................................................................ 24

16. Inventory ............................................................................................................................................. 25 17. Receivables from deliveries and services and other receivables. ........................................................ 25 18. Cash and equivalents ........................................................................................................................... 26 19. Assets held for sale .............................................................................................................................. 26 20. Employee benefits ............................................................................................................................... 26 21. Interest bearing bank credits and loans ............................................................................................... 26 22. Provisions ............................................................................................................................................ 27 23. Liabilities from deliveries and services, other liabilities ..................................................................... 27

23.1. Liabilities from deliveries and services and other liabilities (Current) .................................... 27 23.2. Other non-financial liabilities .................................................................................................. 28

24. Issuances, repurchases, and repayments of debt securities .................................................................. 28 25. Financial instruments .......................................................................................................................... 29 26. Objectives and principles of financial risk management ..................................................................... 31 27. Capital management ............................................................................................................................ 31 28. Contingent liabilities and contingent assets ........................................................................................ 32 29. Lawsuits .............................................................................................................................................. 32 30. Investment liabilities ........................................................................................................................... 32 31. Used electrical and electronic equipment. ........................................................................................... 32 32. Related party transactions ................................................................................................................... 32



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33. Events after the balance date ............................................................................................................... 34 34. Other information ................................................................................................................................ 35 35. Approval for publication ..................................................................................................................... 43



Additional notes to the Condensed Interim Consolidated Financial Statement included on pages 12 to 41 shall constitute an integral part of this statement 4/43

SELECTED CONSOLIDATED FINANCIAL DATA OF THE CAPITAL GROUP in thousands of PLN in thousands of EUR SELECTED FINANCIAL DATA 4 quarters of 2017 Year 2016 4 quarters of 2017 Year 2016

1 Net revenue from sales of products, goods and material 2,653,850 2,474,889 623,218 567,154 2 Profit (loss) on operating activities 139,507 155,044 32,761 35,530 3 Profit (loss) before tax 118,116 138,220 27,738 31,675 4 Net profit (loss) allocated to company shareholders 146,313 108,549 34,359 24,875 5 Net profit (loss) allocated to minority shareholders 21 -70 5 -16 6 Net cash flows from operating activities 108,966 195,889 25,589 44,891 7 Net cash flows from investment activities -83,734 -85,262 -19,664 -19,539 8 Net cash flows from financial activities -17,220 -92,245 -4,044 -21,139 9 Total net cash flows 8,012 18,382 1,882 4,212

10 Total assets 1,760,956 1,491,962 422,200 337,243 11 Long-term liabilities 181,070 143,167 43,413 32,361 12 Short-term liabilities 839,103 671,628 201,180 151,815 13 Equity capital allocated to shareholders 740,585 678,517 177,560 153,372 14 Equity capital allocated to minority shareholders 198 -1,350 47 -305 15 Share capital 15,551 15,551 3,728 3,515 16 Number of shares 7,775,273 7,775,273 7,775,273 7,775,273 17 Number of own shares for disposal 0 0 0 0 18 Number of own shares for redemption 0 0 0 0 19 Profit (loss) per ordinary share 18.82 13.96 4.42 3.20 20 Book value per share (PLN / EUR) 95.25 87.27 22.84 19.73 21 Paid dividend per share (PLN / EUR) 5.50 4.00 1.32 0.74

Financial data were converted to EUR using the following currency exchange rates: 31/12/2017 31/12/2016 Currency exchange rates for conversion of the profit and loss account and the cash flow statement: 4.2583 4.3637 Currency exchange rates for conversion of the balance sheet items: 4.1709 4.4240



Additional notes to the Condensed Interim Consolidated Financial Statement included on pages 12 to 41 shall constitute an integral part of this statement 5/43

SELECTED FINANCIAL DATA OF THE ISSUER in thousands of PLN in thousands of EUR SELECTED FINANCIAL DATA 4 quarters of 2017 Year 2016 4 quarters of 2017 Year 2016 1 Net revenue from sales of products, goods and material 1,583,122 1,608,636 371,773 368,640 2 Profit (loss) on operating activities 58,660 93,380 13,775 21,399 3 Profit (loss) before tax 103,877 142,778 24,394 32,719 4 Net profit (loss) allocated to company shareholders 146,501 128,648 34,404 29,481 5 Net cash flows from operating activities 54,953 138,985 12,905 31,850 6 Net cash flows from investment activities -55,336 -38,799 -12,995 -8,891 7 Net cash flows from financial activities -484 -73,910 -114 -16,937 8 Total net cash flows -867 26,276 -204 6,021 9 Total assets 1,407,419 1,252,078 337,438 283,019

10 Long-term liabilities 169,461 130,822 40,629 29,571 11 Short-term liabilities 495,370 467,552 118,768 105,685 12 Equity capital allocated to shareholders 742,588 653,704 178,040 147,763 13 Share capital 15,551 15,551 3,728 3,515 14 Number of shares 7,775,273 7,775,273 7,775,273 7,775,273 15 Number of own shares for disposal 0 0 0 0 16 Number of own shares for redemption 0 0 0 0 17 Profit (loss) per ordinary share 18.84 16.55 4.32 3.79 18 Book value per share (PLN / EUR) 95.51 84.07 22.90 19.00 19 Dividend per share paid (PLN / EUR) 5.50 4.00 1.29 0.92

Financial data were converted to EUR according to the following currency exchange rates: 31/12/2017 31/12/2016 Currency exchange rates for conversion of the profit and loss account and the cash flow statement: 4.2583 4.3637 Currency exchange rates for conversion of the balance sheet items: 4.1709 4.4240



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INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for four quarters of 2017

Note

4 quarters of 2017 Year 2016 4th quarter

2017 4th quarter

2016

Continued activities Revenue from sales of goods and products 2,618,065 2,442,177 740,035 661,219 Revenue from sale of services 35,785 32,712 9,922 8,770 Revenue from sales 2,653,850 2,474,889 749,957 669,989 0 0 Own sales costs 1,885,524 1,692,175 532,097 451,918 Gross profit/(loss) on sales 768,326 782,714 217,860 218,071 0 0 Other operating revenue 9.1. 24,101 11,099 6,418 4,333 Selling costs 292,281 264,168 80,878 68,728 General administrative expenses 335,389 344,461 96,270 102,982 Other operating costs 9.2. 25,250 30,140 14,523 11,570 Profit/(loss) on operating activities 139,507 155,044 32,607 39,124 Financial revenue 6,930 5,147 4,428 1,087 Financial costs 28,151 22,383 10,185 4,985 Share in the profit or loss of associates accounted for using the equity method -170 412 0 340

Gross profit/(loss) 118,116 138,220 26,850 35,566 0 0 Income tax 10. -28,218 29,741 -349 11,803 Net profit/(loss) on continuing operations 146,334 108,479 27,199 23,763 Discontinued activities 0 0 0 0 Profit/(loss) for the financial year on discontinued operations 0 0 0 0 0 - 0 #AR G!

Net profit/(loss) for the financial year 146,334 108,479 27,199 23,763 0 0 Profit/(loss) allocated to: 146,334 108,479 27,199 23,763 Shareholders of the Parent Company 146,313 108,549 27,349 23,842 Non-controlling shareholders 21 -70 -150 -79 Other total revenue Items to be reclassified to the profit / (loss) in subsequent reporting periods: -40,426 7,037 -17,206 4,328

Exchange gain (loss) of a foreign entities -19,468 -2,517 -10,398 15,626 Net assets hedging 4,271 13,165 -864 1,247 Cash flow hedging -32,191 -3,844 -7,670 -14,883 Share in other total revenue of affiliates or subsidiaries 0 0 0

Income tax associated with other total revenues 6,962 233 1,726 2,338 -593 0 -593

Other net comprehensive income to be reclassified to the profit / (loss) in subsequent reporting periods

416 -593 416 -593



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Items not to be reclassified to the profit / (loss) in subsequent reporting periods: 416 0 416 0

Actuarial profit / (loss) on specific benefit schemes 416 -593 416 0

Profit / (loss) on cash flow hedging 0 0 Revaluation of land and buildings 0 0 0 0 Income tax associated with other total revenues 0 0

Other net comprehensive income not to be reclassified to the profit / (loss) in subsequent reporting periods

0 0

Other total net revenue -40,010 6,444 -16,790 3,735 0 0 COMPREHENSIVE INCOME FOR THE YEAR 106,324 114,923 10,409 27,498 0 0

0 0

Comprehensive income allocated to: 106,324 114,923 10,409 27,498 Shareholders of the Parent Company 106,303 114,993 10,559 27,577 Non-controlling shareholders 21 -70 -150 -79 0 0

Profit/(loss) per share: – basic from the profit for the period

allocated to shareholders of the Parent Company

18.82 13.96 3.52 3.07

– basic from the profit from continued activities for the period allocated to shareholders of the Parent Company

18.82 13.96 3.52 3.07

– diluted from the profit for the period allocated to shareholders of the Parent Company

18.82 13.96 3.52 3.07

– diluted from the profit from continued activities for the period allocated to shareholders of the Parent Company

18.82 13.96 3.52 3.07



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INTERIM CONDENSED CONSOLIDATED BALANCE SHEET as at 31 December 2017

Note 31 December 2017 31 December 2016 ASSETS Fixed assets 641,387 532,026 Property, plant and equipment 12. 367,233 306,813 Investment property 13. 25,766 27,507 Intangible assets 14. 144,852 129,815 Investments in associated companies valuated by the equity method - 7,656

Derivative financial instruments 25. 20,348 19,191 Other financial assets (non-current) 15.1. 577 13,280 Deferred tax assets 82,611 27,764 Current Assets 1,108,912 949,279 Inventory 16. 399,640 338,961 Receivables from deliveries and services and other receivables. 17. 550,449 469,866

Receivables from income tax 523 0 Derivative financial instruments 25. 17,586 11,233 Other financial assets 15.1. 12,004 9,183 Other non-financial assets 15.2. 35,611 34,722 Cash and equivalents 18. 93,099 85,314 Fixed assets classified as designated for sale 10,657 10,657 TOTAL ASSETS 1,760,956 1,491,962 LIABILITIES Total equity capital 740,783 677,167 Equity capital allocated to shareholders of the Parent Company 740,585 678,517

Stated capital 15,551 15,551 Supplementary capital 594,813 504,846 Exchange gain (loss) of a foreign entity -34,746 -15,278 Other reserve capitals 4,918 25,460 Retained profit / Uncovered loss 160,049 147,938 Non-controlling interest 198 -1,350 Long-term liabilities 181,070 143,167 Interest bearing bank credits and loans 21. 146,733 126,193 Provisions 22. 6,593 4,903 Liabilities from net employee benefits 20. 8,508 7,505 Derivative financial instruments 25. 16,868 2,109 Other liabilities 0 0 Accruals 2,368 2,457 Short-term liabilities 839,103 671,628 Liabilities from deliveries and services and other liabilities. 23. 465,949 453,558

Current portion of interest-bearing bank credits and loans 21. 162,398 74,537

Derivative financial instruments 25. 23,726 9,030 Liabilities from income tax 16,841 16,845 Accruals 12,114 7,423 Provisions 22. 158,075 110,235 Total liabilities 1,020,173 814,795 TOTAL LIABILITIES 1,760,956 1,491,962



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INTERIM CONDENSED CASH FLOW STATEMENT for four quarters of 2017

4 quarters of 2017 Year 2016

Cash flows from operating activities Gross profit/(loss) 118,116 138,220 Adjustments by items: -9,150 57,669 Net (profit) loss share of subsidiaries and affiliates consolidated by equity method 21 -412

Depreciation 48,366 45,507 Currency translation gains (losses) -29,832 -11,483 Interest and profit sharing (dividend) 13,011 13,045 Profit (loss) on investing activities 453 3,904 Change in provisions 48,562 19,811 (Increase) / decrease in inventories -38,659 15,636 (Increase) / decrease in receivables -4,210 -37,566 (Increase) / decrease in liabilities -39,451 -12,965 Change in prepayments and accruals 1,290 -3,294 Result on derivatives -11,718 -12,741 Cash flows related to hedging 28,285 27,448 Other -8,438 14,407 Income tax paid -16,830 -3,628 Net cash flows from operating activities 108,966 195,889

Cash flows from investment activities Disposal of fixed assets and intangible assets 487 189 Purchase of fixed assets and intangible assets -97,739 -83,348 Purchase of investments in subsidiaries, associates and joint ventures 3,491 -9,176 Interest received 790 23 Repayment of loans granted 2,835 11,135 Loans granted -1,500 -9,800 Cash flows related to trade derivatives and instruments hedging balance sheet positions 7,902 5,715

Net cash from investing activities -83,734 -85,262

Cash flows from financial activities Inflows from issuance of shares - Sales of own shares - Sales of non-controlling shares - Payment of liabilities arising from financial leases -3,939 -5,021 Payment of financial liabilities Inflows from credits/loan taken 71,197 11,301 Repayment of loans/credits -17,387 -35,943 Issuance of debt securities 6,959 0 Redemption of debt securities -15,902 -15,902 Dividends paid out -43,049 -31,301 Interest paid -15,099 -15,379 Other Net cash from financial activities -17,220 -92,245

Net increase / (decrease) in cash and cash equivalents 8,012 18,382 Balance sheet change in cash, including: 7,808 18,734 Net exchange rate differences 205 -352 Opening balance of cash 85,314 66,932 Closing balance of cash 93,326 85,314



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INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for four quarters of 2017 Allocated to shareholders of the Parent Company

Stated capital

Supplementary capital

Exchange gain (loss) of a foreign

entity

Revaluation of hedging

instruments capital

Revaluation of a defined

benefit plan

Other reserve capitals

Retained profits Total

Non-controlling

interest

Total equity capital

As at 01 January 2017 15,551 504,846 -15,278 17,689 -1,370 9,141 147,938 678,517 -1,350 677,167 Net profit/(loss) for the year - - - - - - 146,313 146,313 21 146,334 Other net comprehensive income for the period - - -19,468 -20,958 416 - - -40,010 0 -40,010

Comprehensive income for the year

0 0 -19,468 -20,958 416 0 146,313 106,303 21 106,324

Re-booking of financial result to equity capital - 89,932 - - - - -89,932 0 - 0

Dividends - - - - - - -43,619 -43,619 - -43,619 Other changes - 35 - - - - -651 -616 1,527 911 As at 31 December 2017 15,551 594,813 -34,746 -3,269 -954 9,141 160,049 740,585 198 740,783 0 0 0 0 0 0 0 0 0 0

As at 01 January 2016 15,551 450,793 -12,761 8,135 -777 9,142 124,765 594,848 -1,280 593,568 Net profit/(loss) for the year 108,549 108,549 -70 108,479 Other net comprehensive income for the period -2,517 9,554 -593 6,444 6,444

Comprehensive income for the year

0 -2,517 9,554 -593 108,549 114,993 -70 114,923

Re-booking of financial result to equity capital 54,114 -54,114 0 0

Dividends -31,262 -31,262 -31,262 Other changes -61 -1 -62 -62 As at 31 December 2016 15,551 504,846 -15,278 17,689 -1,370 9,141 147,938 678,517 -1,350 677,167



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ADDITIONAL EXPLANATORY NOTES

1. Overview

Amica Spółka Akcyjna Capital Group ("Group") is composed of Amica Spółka Akcyjna ("Parent Company", "Company") and its subsidiaries (see Note 32). The Interim Condensed Consolidated Financial Statements of the Group cover the period of four quarters of 2017 ended 31 December 2017 and comprise comparative data for the period of four quarters of 2016 ended 31 December 2016. The Parent Company is entered in the register of entrepreneurs of the National Court Register maintained by the District Court in Poznań - Nowe Miasto and Wilda in Poznań, 9th Commercial Division of the National Court Register, under the number KRS 000017514. The Parent Company was issued the business statistical number REGON 570107305. The duration of the operation of the Parent Company and companies within the Group is undefined. The Group's core business is:

• Manufacture and sale of electric and gas-fired domestic appliances; • Sale of domestic appliances; • Sales of maintenance, heating, hotel, and catering services; • Rental and leasing activities.

The direct parent of the Group is Holding Wronki S.A., which is responsible for preparation of the financial statements to be made public. The ultimate controlling party of the Group is Mr Jacek Rutkowski, who (being a natural person) is not obliged to prepare financial statements for public use (IAS.24.13). The interim financial result may not fully reflect the potential financial result to be achieved for the financial year.

2. Composition of the Parent Company's Management Board and Supervisory Board

The Parent Company's Management Board on the 31 December 2017 was composed of: • Mr Jacek Rutkowski - President of the Management Board • Mr Marcin Bilik – Vice President of the Management Board • Ms Alina Jankowska-Brzóska – Vice-President of the Management Board • Mr Wojciech Kocikowski - Vice President of the Management Board • Mr Piotr Skubel – Vice President of the Management Board

On 13 September 2017, Mr. Tomasz Rynarzewski, Chair of the Supervisory Board of the Company, received a letter of resignation from Jarosław Drabarek, Member of the Management Board of “Amica S.A.”, with effect from 13 September 2017 (important personal reasons have been indicated as the reason for the resignation). The Parent Company's Supervisory Board on the 31 December 2017 was composed of:

• Tomasz Rynarzewski – Chair of the Supervisory Board/Chair of the Operating Committee • Artur Małek – Independent Member of the Supervisory (Vice-Chair of the Board)/Member of the Audit

Committee • Andrzej Konopacki – Independent Member of the Supervisory Board/Chair of the Audit Committee • Tomasz Dudek – Member of the Supervisory Board/Member of the Operating Committee • Piotr Rutkowski – Member of the Supervisory Board/Member of the Operating Committee • Paweł Wyrzykowski – Member of the Supervisory Board/Member of the Operating Committee

In connection with the resignation from the supervisory body of Amica Spółka Akcyjna submitted by Mr. Dariusz Formela on 20 October 2017, the Supervisory Board of “Amica Spółka Akcyjna”, acting pursuant to § 20



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paragraph 4 of the Articles of Association of “Amica Spółka Akcyjna”, on 20 October 2017, appointed by co-option Mr. Artur Małek as a Member of the Supervisory Board of “Amica Spółka Akcyjna”. Mr. Artur Małek has been appointed as a Member of the Supervisory Board of “Amica Spółka Akcyjna” for a joint term of office (of three years), as referred to in § 20 paragraph 2 of the Articles of Association of “Amica Spółka Akcyjna” (which commenced on 01 June 2016). In connection with the resignation from the supervisory body of Amica Spółka Akcyjna submitted by Mr. Jacek Bartmiński on 20 October 2017, the Supervisory Board of “Amica Spółka Akcyjna”, acting pursuant to § 20 paragraph 4 of the Articles of Association of “Amica Spółka Akcyjna”, on 20 October 2017, appointed by co-option Mr. Andrzej Konopacki as a Member of the Supervisory Board of “Amica Spółka Akcyjna”. Mr. Andrzej Konopacki has been appointed as a Member of the Supervisory Board of “Amica Spółka Akcyjna” for a joint term of office (of three years), as referred to in § 20 paragraph 2 of the Articles of Association of “Amica Spółka Akcyjna” (which commenced on 01 June 2016).

3. The basis for drawing up the interim condensed consolidated financial statement

These interim condensed consolidated financial statements have been prepared in accordance with the International Accounting Standard 34 – Interim Financial Reporting approved by the EU. These interim condensed consolidated financial statements are presented in Polish zloty ("PLN"), while all the values, unless otherwise indicated, are expressed in thousand PLN. These interim condensed consolidated financial statements have been prepared with the assumption that the business of the Group companies is to continue operating in the foreseeable future. On the date of approval of these interim condensed financial statements, there are no circumstances that could be regarded as a threat to the continued business operations of the Group companies. The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual consolidated financial statements and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 December 2016.

4. Significant Accounting Policies

The accounting principles (policies) applied in the preparation of the interim condensed consolidated financial statements are consistent with those applied in preparation of the annual consolidated financial statements for the year ended 31 December 2016. The Group has not adopted any other standard, interpretation or amendment that was issued but has not become effective yet.

5. Changes in the presentation.

As a result of changes in the presentation of the individual components of the report and their valuation relating to the previous reporting periods, the Group presents the following summary of adjustments aimed to restate the comparative data relating to the presented previous period, in which the figures have been adjusted using the current allocation pattern.

• Changes in the presentation



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relating to the year 2016 Before

restatement Adjustment Description of restatement After restatement

Other operating revenue -13,553 2,454 change in the presentation of compensations for repair

costs

-11,099 Other operating costs 30,319 -179 30,140 Selling costs 266,443 -2,275 264,168 relating to the fourth quarter of 2016 Before


Other operating revenue -5,372 1,039 change in the presentation of compensations for repair

costs

-4,333 Other operating costs 11,615 -45 11,570 Selling costs 69,722 -994 68,728

6. Seasonality of operations

The Group's operations are not seasonal, so the presented Group's results do not fluctuate significantly during the year.

7. Business combinations and acquisition of non-controlling interests

Acquisition of entities SIDEME S.A. A. Increase in the number of shares held in a company incorporated under the French law

Respectively, on 22/03/2017 and on 28/03/2017, Amica S.A. acquired 21.41% and 39.29% of shares in CDA Group Ltd. in the commercial company incorporated under the French law – Sideme S.A. Societe Industrielle d’Equipement Moderne. The purchase price of the aforesaid shares in 2017 amounted to EUR 1,600,000 (PLN 7,105 thousand) and EUR 2,215,167 (PLN 9,742 thousand). In 2015, the Group acquired the first block of 39.29% shares for the price of EUR 1,600,000 (PLN 6,841 thousand). The acquisition of assets was financed with the Company's own funds. The share capital of SIDEME amounts to EUR 1,607,850.00 and is divided into 107,190 shares with a nominal value of EUR 15.00 per share. Prior to the increase of the number of shares held, Amica S.A. held 42,120 shares in SIDEME, with a total nominal value of EUR 631,800.00 (accounting for 39,29 % of the share capital of SIDEME and 39.29 % of votes at the general meeting of SIDEME).

SIDEME holds 100% shares in a French law company operating under the name of SIDEPAR SAS based in LEVALLOIS-PERRET. The share capital of SIDEPAR amounts to EUR 690,000.00 and is divided into 46.000 shares with a nominal value of EUR 15.00 per share. The objects of SIDEPAR include after-sales services such as handling service requests (call-centre) as well as management and planning of spare parts supplies to service partners and authorized warranty repair centres).



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B. Objects of the Company

SIDEME is a distributor of household appliances with 45 years of tradition on the French market. The company specializes in supplying a broad portfolio of products under private labels and under its own brand name Curtiss, reporting an annual turnover in excess of EUR 80 million. Furthermore, in 2013, the company embarked on collaboration with Amica Group, as the entity responsible for building sales of the Issuer’s products on the French market. For the past three years, the Company has also been operating successfully in the wine cooler segment. In 2016, SIDEME sold more than 200 thousand refrigerators, nearly 100 thousand dishwashers and 70 thousand cooking/heating kitchen appliances (cookers, ovens and hobs). Importantly, SIDEME may boast a high level of distribution coverage, supplying appliances to the largest French store chains such as ElectroDepot, CD Discount, Darty and Conforama. The amounts resulting from the settlement of the Company's acquisition, as determined in the first quarter of 2017, are presented according to the acquisition method. Until the date of these consolidated financial statements, the process of fair value measurement of the acquired assets and liabilities has not been completed. These values will be determined definitively within 12 months of the acquisition date. The Group intends to present the final settlement related to the acquisition of Sideme in the annual Consolidated Financial Statements. The identified assets and liabilities of the acquired company recognized in the consolidated financial statements are as follows: Figures in thousands of EUR Figures in thousands of PLN FIXED ASSETS 9,340 PLN 39,412 Tangible and intangible fixed assets 9,340 PLN 39,412 CURRENT ASSETS 28,293 PLN 119,389 Inventory 7,055 PLN 29,772 Short-term receivables 14,449 PLN 60,974 Cash 6,788 PLN 28,644 LIABILITIES 29,090 PLN 122,755 Short-term liabilities 28,229 PLN 119,121 Provisions 861 PLN 3,634

Total net assets 8,542 PLN 36,046 Purchase price -6,030 PLN -25,447 Profit from bargain acquisition 2,512 PLN 10,599

Fair value measurement according to IFRS 3 465 PLN 1,963 Value presented under other operating activities 2,977 PLN 12,562

Taking into consideration the requirements of IFRS 3, the Group measured the purchase price of the first block of shares purchased in 2015 at fair value as of the date of acquisition. The price used for the fair value measurement was the price per share from the transaction concluded on 28 March 2017. As a result of the revaluation, the purchase price has been increased by EUR 465 thousand (PLN 1,963 thousand). The control over the company was acquired in stages. The Group acquired the controlling interest as a result of purchasing the second block of shares. Disposal of shares 1) On 28/03/2017, 100 shares were sold to Amica Handel i Marketing. The shares represent 0.01% of the share capital of the SIDEME.

2) On 28 September 2017, 5359 shares in the capital of the Sideme with a nominal value of EUR 15 per share were sold to a natural person. The shares represent 5% of the share capital of the SIDEME. The share sale price was set at a total of EUR 198,000.



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Below is the calculation of the result on the sale of SIDEME’s shares after the acquisition of the controlling interest. The result on these transactions was recognized in equity.

Sale of 100 shares to AHIM on 28/03/2017 EUR PLN Fair value of 100 shares 5 23 Net assets as presented in SIDEME's Financial Statements 3 14 Fair value of assets 5 21 Amount recognized as non-controlling shares (0.01% of net assets) 8 34 Change in equity of the parent company 3 12

Sale of 5% of shares on 28/09/2017 EUR PLN Fair value of the payment received for 5539 shares 198 853 Net assets as presented in SIDEME's Financial Statements 99 425 Fair value of assets 248 1,068 Amount recognized as non-controlling shares (5% of net assets) 346 1,492 Change in equity of the parent company 148 639 Sum - to be recognized in the equity 151 651

8. Information concerning business segments

Amica S.A. is a manufacturer and distributor of household appliances and its production activities are held in a single location in Wronki. For management purposes, the Group is organised in business units based on their products and services. The following operating segments are distinguished:

• Free-standing heating equipment segment includes free-standing cookers manufactured by Amica S.A. • Built-in heating equipment segment includes built-in cookers and ovens manufactured by the Parent

Company. • Other heating equipment segment includes built-in hobs manufactured by the Parent Company.

• Goods segment includes equipment imported for the purpose of resale, including refrigerators, washing

machines, microwave ovens, dishwashers and small appliances.

None of the Group's operating segments have been combined with another segment to create the reporting segments. The accounting principles for the operating segments are the same as the accounting principles applied by the Group. The Management Board separately monitors business segment results in order to take decisions regarding allocation of resources as well as to assess the effects of this allocation and the performance. The basis for the assessment of performance is the operating profit



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or loss, which in certain respects, are measured differently from operating profit or loss presented in the financial statements. Financing of the Group (including financial costs and revenues), certain operating expenses and income taxes are monitored at the Group level and are not allocated to the segments. The following tables present revenue and results attributable to individual segments of activity for four quarters of 2017 and for 2016.

For the period from 01/01/ to 31/12/2017 Free-standing

heating equipment

Built-in heating

equipment

Other heating

equipment

Goods Other Total

Revenue from external clients 673,358 355,106 202,221 1,390,018 33,148 2,653,850

Own sales costs 463,314 235,134 121,905 1,041,346 23,825 1,885,524

Operating sector result 210,043 119,972 80,316 348,672 9,323 768,326 Operating expenses allocated to the segment 110,976 73,776 39,226 275,118 0 499,096 Operating sector result 99,067 46,196 41,090 73,554 9,323 269,230 Result from other operating activities and non-allocated costs -129,723

Group's operating profit 139,507 Result from financial activities -21,391 Group's gross profit 118,116 Obligatory result burden 28,218 Group's net profit 146,334

for the period from 01/01 to 31/12/2016 Free-standing

heating equipment

Built-in heating

equipment

Other heating

equipment

Goods Other Total

Revenue from external clients 665,121 366,207 187,915 1,224,263 31,383 2,474,889

Own sales costs 438,524 235,585 117,958 877,115 22,993 1,692,175 Operating sector result 226,597 130,621 69,958 347,148 8,390 782,714 Operating expenses allocated to the segment 117,749 76,819 36,236 247,568 0 478,372 Operating sector result 108,848 53,802 33,722 99,580 8,390 304,342 Result from other operating activities and non-allocated costs -149,298

Group's operating profit 155,044 Result from financial activities -16,824 Group's gross profit 138,220 Obligatory result burden -29,741 Group's net profit 108,479

Breakdown of the Group’s revenue by geographical area in thousands of PLN (geographical segmentation): 4 quarters of 2017 Year 2016 Sale of products and goods 2,549,153 2,382,911 Poland 698,396 731,184 East 461,130 418,533 North 208,894 221,553 SOUTH 188,798 170,964 West 991,936 840,677 Other sales, including: 104,697 91,978 -spare parts and materials 68,912 60,595 - services 35,785 31,383 Total 2,653,850 2,474,889

The above information on income is based on data on the registered offices of the Group's customers. Given the confidentiality of data, the Group does not present revenue from external customers by product type.



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The Group's customer base does not include actors, accounting for a turnover in excess of 10% of the Group's total revenue.

9. Revenue and costs

9.1. Other operating revenue 4 quarters of 2017 Year 2016 EU subsidies 242 195 Compensation received, fines 4,368 4,216 Returned goods 117 165 Free shipments 1,329 1,681 Refund of international VAT payments 281 0 Result on sale of financial assets 0 2,499 Profit from bargain acquisition 12,562 0 Settlements attributable to use of cars 758 486 Reversal of the provision for bonuses resulting from a change in the estimate 2,563 0

Surplus on inventory 241 743 Derecognition of settlement account balances 0 12 Profit from sale of non-financial fixed assets 256 0 Settlements with insurer 333 0 Other items 1,051 1,102 24,101 11,099

9.2. Other operating costs 4 quarters of 2017 Year 2016 Loss on sales of non-financial fixed assets 0 3,802 Replacement of faulty equipment 1,516 100 Shortages and damage 245 410 Inventory scrapping 2,338 1,768 Costs associated with employment 1,565 770 Penalties and fines, compensations 100 0 Revaluation of warehouse 3,117 1,555 Gain on revaluation of receivables* 9,402 5,329 Corporate Social Responsibility (CSR) 4,200 2,513 Advance payments for non-completed deliveries 0 5,121 Creation of a provision for retirement benefits 262 801 Derecognition of settlement account balances 606 0 Impairment loss on property 0 7,000 Settlements with suppliers on account of bonuses 200 0 Other operating costs 1,699 971 25,250 30,140

*Information on revaluation of receivables is presented in Note 17.

9.3. Costs by type 4 quarters of 2017 Year 2016 Depreciation 48,366 45,507 Consumption of materials and energy 699,438 670,318 Third party services 223,600 200,593 Taxes and charges 24,215 24,245 Cost of employee benefits 307,608 275,467 Other costs by type 198,033 225,368 Value of goods and materials sold and spare parts 1,045,807 885,431 Total expenses by nature, including: 2,547,067 2,326,929

Items included in own cost of sales 1,885,524 1,692,175 Items included in cost of sales 292,281 266,443



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Items included in general and administrative expenses

335,389 344,461

Change in inventory of products 3,066 -15,063 Cost of services for own needs -36,939 -8,787

10. Income tax

The main elements of the tax burden for the year ending on 31 December 2017 and 31 December 2016 are as follows: 4 quarters of

2017 Year 2016

Recognized in profit or loss Current income tax 28,843 29,534 Current debit due to deferred income tax 28,843 29,534 Adjustments of current income tax from previous years 0 Deferred income tax -57,061 207 Associated with the occurrence and the reversal of transitional differences -57,061 207 Taxes recognised in the profit and loss account -28,218 17,938 Statement of changes in equity capital Current income tax 0 0 Tax effect of cost of increasing the share capital Tax benefit/(tax burden) disclosed in equity 0 0

Statement of comprehensive income Deferred income tax Tax on net profit /(loss) due to changes in the effective portion of cash flow hedges -6,962 -233

Tax on unrealized gains/(losses) on financial assets available for sale Tax on effective portion of cash flow hedges settled during the year Tax benefit/(tax burden) disclosed in other comprehensive income -6,962 -2,105

In the four quarters of 2017, the Parent Company recognized a deferred tax asset in the amount of PLN 54,735 thousand. The asset is the result of fulfilment by the Company of two conditions for operation in Kostrzyńsko-Słubicka Special Economic Zone pursuant to the Permission No. 245 of 08 April 2014. In June 2017, the Company reached the minimum level of eligible expenses of PLN 120,000 thousand. The created tax asset expresses the current nominal value of the state aid granted to the Company in the form of exemption from income tax on activities carried out in the special economic zone of up to 40% of the investment costs eligible for aid. By the end of 2017, the Company intends to incur additional capital expenditure, which will result in the asset value being updated in future periods in accordance with the terms and conditions of the Permission. The maximum amount of the eligible investment expenses incurred cannot exceed PLN 180,000 thousand. The Company remeasured the asset as at the end of 2017, taking into account the calculated annual income tax and the eligible expenditure incurred until then. The information will be disclosed in the Group’s Annual Consolidated Financial Statements for 2017.

11. Dividends paid out and proposed dividends

The dividend per share paid in July 2017 concerning the year 2016 amounted to PLN 5.5 per share (dividend paid for the year 2015 amounted to PLN 4 per share).



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12. Property, plant and equipment

Land Buildings

and structures

Machines and equipment

Means of transport

Other tangible assets:

Property, plant and equipment in production

Advance payments for

property, plant and equipment in production

Total fixed assets

As at 31/12/2017 Gross balance 4,765 213,391 253,047 26,366 128,971 6,254 13,683 646,477 Accumulated depreciation and adjustment write-offs 0 47,987 143,078 15,613 71,180 1,386 279,244 Net balance 4,765 165,404 109,969 10,753 57,791 4,868 13,683 367,233 Reclassified as fixed assets designated for sale. 0 Adjusted net balance 4,765 165,404 109,969 10,753 57,791 4,868 13,683 367,233 As at 31/12/2016 Gross balance 3,844 156,496 223,618 26,527 106,828 13,550 16,744 547,607 Accumulated depreciation and adjustment write-offs 0 36,792 131,684 14,670 57,648 240,794 Net balance 3,844 119,704 91,934 11,857 49,180 13,550 16,744 306,813 Reclassified as fixed assets designated for sale. 0 Adjusted net balance 3,844 119,704 91,934 11,857 49,180 13,550 16,744 306,813



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Land Buildings

and structures


Means of transport


Property, plant and

equipment in production



Total fixed assets

for the period from 01/01 to 31/12/2017 Net carrying amount as at 01/01/2017 3,844 119,704 91,934 11,857 49,180 13,550 16,744 306,813 Acquisition of the Company 1,404 15,047 834 17,285 Increases (purchase, production, leasing) 10 41,939 36,797 4,366 19,146 85,696 187,954 Decreases (sale, liquidation (-) transfer to fixed assets) -413 -5,144 -7,022 -4,750 -2,428 -94,378 -3,061 -117,196

Other changes (reclassification, transfer, etc.) 0 0 0 0 Depreciation in accordance with the depreciation plan (-) -6,488 -18,399 -4,856 -10,989 -40,732

Depreciation write-offs for liquidated or sold assets. 0 670 6,719 4,103 2,351 0 13,843 Net translation gain (loss) (+/-) -80 -324 -60 33 -303 -734 Net carrying amount as at 31/12/2017 4,765 165,404 109,969 10,753 57,791 4,868 13,683 367,233

Land Buildings

and structures


Means of transport


Property, plant and

equipment in production



Total fixed assets

for the period from 01/01 to 31/12/2016 Net carrying amount as at 01/01/2016 3,755 103,397 86,999 11,161 35,211 31,912 4,099 276,534 Acquisition of the Company 0 Increases (purchase, production, leasing) 20,037 22,726 6,016 10,601 50,157 12,645 122,182 Decreases (sale, liquidation (-) transfer to fixed assets) -5,080 -3,470 -2,341 -4,210 -51,027 -66,128

Other changes (reclassification, transfer, etc.) 4,649 118 -16 12,741 -17,492 0 Depreciation in accordance with the depreciation plan (-) -4,668 -17,790 -5,010 -9,250 -36,718

Depreciation write-offs for liquidated or sold assets. 1,567 3,349 2,118 4,196 11,230 Net translation gain (loss) (+/-) 89 -198 2 -71 -109 -287 Net carrying amount as at 31/12/2016 3,844 119,704 91,934 11,857 49,180 13,550 16,744 306,813



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In the analysed reporting period there have been no changes to estimates concerning the economic cycle of the Group's fixed assets

13. Investment property

31 December 2017 31 December 2016

Opening balance as of 01 January 27,507 37,614 Changes: - sale of investment in real estate - - - capitalised expenditure 3 172 - reclassified as assets available for sale - - - depreciation write-off 0 -8,000 - transfers to fixed assets - - - other-depreciation -1,744 -2,279 Closing balance as of 31 December 25,766 27,507



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14. Intangible assets

Trademarks Patents and licenses

Computer software

Cost of completed

development Goodwill

Other intangible

assets

Intangible assets being developed

Advance payments

for intangible

assets

Intangible assets total

As at 31/12/2017 Gross balance 98,533 11,973 9,787 12,995 55,275 10,886 6,986 136 206,571 Accumulated depreciation and adjustment write-offs 16,878 7,783 7,108 9,317 14,136 6,497 0 0 61,719 Net balance 81,655 4,190 2,679 3,678 41,139 4,389 6,986 136 144,852 Reclassified as fixed assets designated for sale. 0 Adjusted net balance 81,655 4,190 2,679 3,678 41,139 4,389 6,986 136 144,852 As at 31/12/2016 Gross balance 83,421 9,766 7,572 11,923 52,475 5,317 5,381 88 175,943 Accumulated depreciation and adjustment write-offs 12,490 6,975 5,825 6,928 9,877 4,033 0 0 46,128 Net balance 70,931 2,791 1,747 4,995 42,598 1,284 5,381 88 129,815 Reclassified as fixed assets designated for sale. 0 Adjusted net balance 70,931 2,791 1,747 4,995 42,598 1,284 5,381 88 129,815



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Trademarks

Patents and licenses

Computer software

Cost of completed

development

Goodwill

Other intangible

assets



intangible assets

Intangible

assets total

for the period from 01/01 to 31/12/2017 Net carrying amount as at 01/01/2017 70,931 2,791 1,747 4,995 42,598 1,284 5,381 88 129,815 Acquisition of the Company 21,883 266 0 22,149 Increases (purchase, production, leasing) 2,467 1,300 1,101 18 9,722 14,608 Decreases (sales, liquidation, adoption as intangible assets) (-) -263 -1,196 -8,118 48 -9,529 Other changes -3,850 3,850 0 Depreciation in accordance with the depreciation plan (-) -8 -1,071 -617 -2,418 -1 -1,827 -5,942 Depreciation write-offs for liquidated or sold assets. 263 1,178 1,441 Net translation gain (loss) (+/-) -7,301 3 1 -1,459 1,064 1 -7,691 Net carrying amount as at 31/12/2017 81,655 4,190 2,679 3,678 41,139 4,389 6,986 136 144,852

Trademarks

Patents and licenses

Computer software

Cost of completed

development

Goodwill

Other intangible

assets



intangible assets

Intangible

assets total

for the period from 01/01 to 31/12/2016

Net carrying amount as at 01/01/2016 75,655 2,198 2,412 5,566 45,599 1,964 5,076 89 138,559 Acquisition of the Company 0 Increases (purchase, production, leasing) 5,500 1,487 406 1,829 13,705 22,927 Decreases (sales, liquidation, adoption as intangible assets) (-)

-13,400 -1 -13,401

Other changes (reclassification, transfer) 0 Depreciation in accordance with the depreciation plan (-) -565 -894 -956 -2,400 0 -741

-5,556

Depreciation write-offs for liquidated or sold assets. 0 Net translation gain (loss) (+/-) -9,659 0 -115 0 -3,001 61 0 -12,714 Net carrying amount as at 31/12/2016 70,931 2,791 1,747 4,995 42,598 1,284 5,381 88 129,815

In the analysed reporting period there have been no changes to estimates concerning the economic cycle of the Group's fixed assets



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Goodwill The following table presents the carrying amount of goodwill arising on the acquisition of subsidiaries.

31 December 2017 31 December 2016 The carrying amount of goodwill arising on the acquisition of the following entities:

Gram Domestic A/S 7,526 7,389 Amica International GmbH 12,414 12,414 The CDA Group 16,896 18,492 Amica Handel i Marketing Sp. z o.o. 74 74 Marcelin Management Sp. z o.o. 4,229 4,229 Total carrying value 41,139 42,598

The assumptions under the impairment tests were verified as at 31/12/2017 and upheld with respect to the assumptions made as at 31/12/2016.

15. Other assets

15.1. Other financial assets 31 December 2017 31 December 2016

Loans granted 12,031 21,994 Assets available for sale 191 192 Other receivables 0 132 Other 359 145 Total 12,581 22,463 - short-term 12,004 9,183 - long-term 577 13,280

The loans disclosed above were granted to the unconsolidated subsidiaries and bear interest at market rates. The amount of PLN 12,031 thousand of the total amount presented above accounts for the loans granted to Arcula Sp. z o.o. (PLN 10,947 thousand) and KKS Lech (PLN 1,050 thousand). These have a short-term nature. As at 31/12/2017, the loan for Arcula was hedged by assignment of the rights to the investment account of Arcula. The Management Board of the parent confirms the assumptions underlying the valuation of assets disclosed in the consolidated financial statements for the four quarters of 2017. There were no indications of impairment of loans.

15.2. Other non-financial assets 31 December 2017 31 December 2016

Budget receivables 18,820 22,171 Advances for inventories 2,322 1,491 Accruals 14,469 11,060 Total 35,611 34,722 - short-term 35,611 34,722 - long-term 0 0



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16. Inventory

31 December 2017 31 December 2016 Materials:

At the purchase price / cost of manufacture 55,838 49,205 According to recoverable net value 55,058 48,556

Work in progress (at the cost of manufacture) 8,175 6,980 Finished goods:

At the purchase price / cost of manufacture 63,961 66,477 According to recoverable net value 63,961 66,415

Goods: At the purchase price / cost of manufacture 258,362 206,602 According to recoverable net value 254,929 204,731

Spare parts 17,517 12,279 Total inventories at the lower of the two values: purchase price (cost of manufacture) and the net realizable value 399,640 338,961

* The value of inventory as at 31/12/2017 takes into account Sideme's data after consolidation adjustments and amounts to PLN 39,591 thousand. In the comparative period, i.e. as at 31/12/2016, Sideme’s data were not consolidated within Amica S.A. Group. As at 31 December 2017, the Company recognized a write-down on inventory to the net realizable amount of PLN 4,213 thousand (cf. PLN 2,582 thousand as at 31 December 2016). Revaluation of inventory related to materials, finished products and goods and resulted from the application of the policy of creating inventory write-downs due to the their flow turnover ratios.

17. Receivables from deliveries and services and other receivables.

31 December 2017 31 December 2016 Receivables from provision of deliveries and services 534,694 469,449 Other receivables including receivables related to the acquisition of the company 15,755 417

Other receivables from subsidiaries and affiliates - - Total receivables (net) 550,449 469,866 Allowance for uncollectible accounts 23,009 13,140 Gross receivables 573,458 481,409

* The value of receivables as at 31/12/2017 takes into account Sideme's data after consolidation adjustments and amounts to PLN 62,063 thousand. In the comparative period, i.e. as at 31/12/2016, Sideme’s data were not consolidated within Amica S.A. Group. Terms of transactions with related parties are set out in the Note 32. Trade receivables are non-interest bearing and generally have 75-day payment deadlines. The Group runs a policy to sell only to verified customers. As a result, the management believes there is no additional credit risk beyond the level specified by the allowance for uncollectible trade receivables of the Group. The subsidiary, Hansa, has recorded the receivables worth PLN 7.7 million from a customer declared bankrupt. Due to the long-term process of recovery of receivables, the Company decided to recognize a 100% impairment loss on the disputed amount. As at the date of these statements, the receivables are sought from the Insurer before the court of higher level. Below is the analysis of trade receivables, which as at 31 December 2017 and 31 December 2016 were past due. Following the evaluation of the existing collateral securities, no provisions for overdue amounts have been created, as there is no risk of uncollectability.

Total Not overdue

Overdue, but collectible

< 30 days 30 – 90 days

90 – 180 days

180 – 360 days

>360 days

31 December 2017 534,694 504,976 20,891 1,932 3,093 660 3,142 31 December 2016 469,449 412,286 37,548 4,578 1,517 10,619 2,901



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18. Cash and equivalents

Cash and equivalents include the following items: 31 December 2017 31 December 2016 Cash in hand and at bank 87,718 84,190 Current deposits 5,381 1,124 Other 0 0 93,099 85,314

19. Assets held for sale

The value of assets held for sale as at the balance sheet date amounted to PLN 10,657 thousand (cf. PLN 10,167 thousand as at 31/12/2016) and corresponds to the market value of the property. The assumptions underlying the classification of some assets as available-for-sale assets remain valid with regard to the status as at the end of 2016. The sales initiatives are implemented as planned.

20. Employee benefits

The companies of the Group pay retirement bonuses to the retiring employees as specified in the Labour Code or as provided for under individual life insurance and retirement schemes. Therefore, based on a valuation carried out using an internal tool or based on actuarial valuation, some of the Group companies create provisions for the current value of the liabilities related to retirement bonuses. The balance of the provision for the employee benefits as at 31 December 2017 amounted to PLN 8,508 thousand (cf. PLN 7,505 thousand as at 31 December 2016).

21. Interest bearing bank credits and loans

31 December 2017

31 December 2016

Current 162,398 74,537 Liabilities due to financial leasing agreements and leasing agreements with a purchase option 8,573 8,416

Current account overdraft and investment loans 130,853 50,131 Bonds 22,972 15,990 Loans 0 0 Long-term 146,733 126,193 Liabilities due to financial leasing agreements and leasing agreements with a purchase option 7,612 9,203

Bonds 63,771 80,041 Loans 0 0 Investment credits 75,350 36,949

The Group does not include any instruments such as credits and loans as financial instruments to be measured at fair value through profit or loss. All credit, bank loans and other debt instruments are recognised according to the depreciated cost based on the effective interest rate. The fair value of loans, borrowings and other debt instruments is presented in the tables above. Most of the loans bear interest at variable interest rates based on the reference rate WIBOR O/N and M rates had not changed compared with the end of 2016.



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In the period of four quarters of 2017, there have been no new transactions involving credit obligations, whereas movements were related only to the credit limits already granted. As at 31 December 2017, the Group satisfies all the terms and conditions provided for in the loan agreements. The change in the value of loans and borrowings presented in the table above in the four quarters of 2017 was influenced by the assumption of financial liabilities related to the acquisition of control over SIDEME.

22. Provisions

As at the balance sheet date, the Group has reviewed the assumptions regarding the estimated provisions. There were no changes to the assumptions made as of 31 December 2016. Changes in provisions: Current provisions Non-current provisions

31 December 2017

31 December 2016

31 December 2017

31 December 2016

Provisions for sales bonuses 57,869 20,681 Provisions for warranty repairs 30,942 31,030 6,593 4,903 Provisions for salaries and holiday leave 35,094 45,521 Provisions for marketing and commission fees 19,064 3,890 Provisions for licences 3,170 0 Provisions for logistics costs 450 0 Provisions for unrecorded documents 2,386 2,200 Other Provisions 9,100 6,913 Total other provisions 158,075 110,235 6,593 4,903

23. Liabilities from deliveries and services, other liabilities

23.1. Liabilities from deliveries and services and other liabilities (Current) 31 December 2017 31 December 2016 Trade liabilities Towards related parties 663 1,564 Towards other entities 366,743 365,197 367,406 366,761 Financial liabilities Profit sharing liabilities - - Settlements related to the purchase of CDA 0 7,784 0 7,784 Other liabilities Liabilities due to employees from the remuneration 11,111 8,645 Factoring liabilities 34,281 29,907 Other liabilities 53,151 40,461 98,543 79,013 Total* 465,949 453,558

*The balance of liabilities as at 31/12/2017 includes SIDEME’s contributions with the value of PLN 53,700 thousand. In the comparative period, i.e. as at 31/12/2016, Sideme’s data were not consolidated within Amica S.A. Group. Below is the analysis of trade payables by maturity terms of payments:

Total Overdue Not overdue

< 30 days 30 – 90 days

90 – 180 days

180 – 360 days

>360 days

31 December 2017 367,406 51,980 165,476 145,229 4,717 4 0 31 December 2016 366,761 23,282 170,139 168,583 4,484 273 0



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23.2. Other non-financial liabilities

31 December 2017 31 December 2016 Liabilities from tax, customs and other 3,096 392 Value Added Tax 38,742 24,735 Personal Income Tax 2,402 2,209 Liabilities from social security 7,511 7,199 Other 1,400 5,926 Total 53,151 40,461 - short-term 53,151 40,461 - long-term - -

24. Issuances, repurchases, and repayments of debt securities

In 2017, the Group issued short-term bonds on the domestic market, at the same time rebuying the previously issued bonds. In previous periods, the Issuer of bonds was Amica S.A. As at the balance sheet date, Amica's liabilities associated with the issued bonds amounted to PLN 22,861 thousand (short-term liabilities) and PLN 63,602 thousand (long-term liabilities). As at the balance sheet date, the terms and conditions of the issue remained unchanged compared to the terms and conditions as of 31/12/2016.



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25. Financial instruments

Material disclosures of hedging derivatives (including not formally representing hedges in accordance with IAS 39) are presented in the table below:

Maturity dates – in nominal

values data in thousands of PLN

Hedging derivatives

Currency Hedged item Company

Transaction nominal value in currency

Short-term instruments (maturing

before 31/12/2018

)

Long-term instruments

(maturing after 31/12/2018)

Balance sheet valuation of

the instrument recognised in

equity

Deferred tax


the instrument recognised in equity, net of deferred tax

Balance sheet

valuation of the

instrument recognised in equity

Deferred as at

31/12/2016


the instrument recognised in equity, net of deferred tax

Change of the balance sheet

valuation recognised in equity as at

31/12/2017 in relation to

31/12/2016, net of deferred

tax

Valuation of instruments

recognized in the result of

the four quarters of

2017. as at 31/12/2017 as at 31/12/2016

Forward contract EUR Revenue from sales Amica S.A. 40,025 32,025 8,000 5,788 -1,100 4,688 -2,421 460 -1,961 6,649 865

Forward contract CNY Purchase of goods

Amica S.A. 746,000 446,000 300,000 -19,565 3,716 -15,849 3,494 -664 2,830 -18,679 -1,160 Amica International 399,200 399,200 0 185 -57 128 199 -61 139 -11 0

Forward contract EUR Purchase of goods Hansa 3,350 3,350 0 42 -8 33 -807 153 -654 687 0 Forward contract CNY Purchase of goods Hansa 19,975 19,975 0 0 0 0 0 0 0 0 59 Forward contract RUB Sales receivables Amica S.A. 645,000 645,000 0 0 0 0 0 0 0 0 207 Forward contract GBP Revenue from sales Amica S.A. 11,750 9,750 2,000 6,020 -1,144 4,876 6,994 -1,329 5,665 -789 3,765 Forward contract CZK Revenue from sales Amica S.A. 404,000 311,500 92,500 1,689 -321 1,368 777 -148 630 738 576 Forward contract CNY Purchase of goods CDA Ltd. 113,450 111,450 2,000 252 -48 205 -398 80 -318 524 51 Forward contract USD Purchase of goods Amica S.A. 22,200 8,795 13,405 -6,053 1,150 -4,903 888 -169 719 -5,622 -234 Forward contract USD Purchase of goods CDA Ltd. 755 755 0 -27 5 -21 -172 34 -137 116 -30 Forward contract USD Purchase of goods Sideme S.A. 48,524 42,417 6,107 -11,161 3,720 -7,441 0 0 0 -7,441 -1,534 Forward contract EUR Purchase of goods CDA Ltd. 3,120 3,120 0 -44 8 -36 13 -3 10 -46 -51 Forward contract EUR Purchase of goods

Amica Commerce 4,825 4,025 800 259 0 259 0 0 0 259 132

IRS Contract PLN Investment credit Amica S.A. 138,250 16,900 121,350 -670 127 -543 127 -24 103 -646 -10

CIRS Contract GBP Net assets of the UK

company Amica S.A. 15,779 2,630 13,149 17,436 -3,313 14,123 13,167 -2,503 10,664 3,460 -277

Total -5,849 2,736 -3,112 21,862 -4,173 17,689 -20,802 2,359



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Under the hedging policy, derivatives are designated by the Group as cash flow and fair value hedges in accordance with the requirements of IAS 39 (Derivative hedging instruments). The Group has hedged the net asset value with CIRS transactions. Hedging derivatives include derivatives formally not constituting collateral in accordance with IAS 39. Other derivatives are treated as instruments held for trading (trading derivatives). All derivative instruments are valued at their fair market value, established based on data from the market (exchange rates, interest rates).

31 December 2017 31 December 2016 Fixed assets: Trade derivatives Hedging derivatives 20,348 19,191 Long-term derivatives 20,348 19,191 Current assets: Trade derivatives Hedging derivatives 17,586 11,233 Short-term derivatives 17,586 11,233 Assets - derivatives 37,934 30,424 Long term liabilities: Trade derivatives Hedging derivatives 16,868 2,109 Long-term derivatives 16,868 2,109 current liabilities: Trade derivatives Hedging derivatives 23,726 9,030 Short-term derivatives 23,726 9,030 Liabilities - derivatives 40,594 11,139

Information on the fair value of financial instruments

The fair value is defined as the sum for which a given asset could be exchanged, and liability executed, under market conditions between well informed, interested and unconnected parties. In the case of financial instruments for which there exists an active market, their fair value is established based on parameters from the active market (sale and purchase prices). In the case of financial instruments for which there is no active market, the fair price is established according to evaluation techniques, with initial data of the model used at a maximum level being variable and coming from active markets (exchange rates, interest rates, etc). The table below presents the financial assets and liabilities measured by the Group at fair value, categorised at a defined level in the fair value hierarchy:

level 1 - listed prices (unadjusted) from active markets for identical assets and liabilities, level 2 - initial data for valuation of assets and liabilities, other than prices noted as part of level 1,

observable based on variables from active markets, level 3 - initial data for valuation of assets and liabilities, not established based on variables from active

markets.

Class of financial instrument Level 1 Level 2 Level 3 Total fair market value



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As at 31 December 2017 Assets: Shares in stock-exchange listed companies Stock, shares in non-stock-exchange listed companies Hedging derivatives 37,934 37,934 Trade derivatives Debt securities at fair value Total assets 37,934 37,934 Liabilities: Trade derivatives Hedging derivatives 40,594 40,594 Loans at fair value Total liabilities 40,594 40,594 Net fair value -2,660 -2,660 As at 31 December 2016 Assets: Shares in stock-exchange listed companies Stock, shares in non-stock-exchange listed companies Hedging derivatives 30,424 30,424 Trade derivatives Debt securities at fair value Total assets 30,424 30,424 Liabilities: Trade derivatives Hedging derivatives 11,139 11,139 Loans at fair value Total liabilities 11,139 11,139 Net fair value 19,285 19,285

In the reporting period there were no transfers between Level 1 and Level 2 in the fair value hierarchy, and none of the instruments has been moved from/to Level 3 of the fair value hierarchy.

26. Objectives and principles of financial risk management

In addition to derivatives, the main financial instruments used by the Group include bank loans, bonds, finance lease, cash and current deposits. The main purpose of these financial instruments is to raise funds for the Group's operations. The Group also possesses other financial instruments which include receivables and liabilities from deliveries and services which are formed directly in its ongoing activities. The Group enters also in the transactions involving derivatives, especially futures on interest rate swaps and foreign currency forward contracts. The purpose of these transactions is to manage interest rate risk and currency risk arising in the course of the Group's operations and arising under the financing sources used. The Group applies CIRS transactions to manage the currency risk and interest rate risks. As at 31 December 2017, the Group has hedged the net value of CDA’s assets with a CIRS transaction. The principle applied by the Group at present and throughout the period covered by the report is no trading in financial instruments. The main risks arising from the Group's financial instruments include interest rate risk, liquidity risk, foreign currency risk and credit risk. The Management Board reviews and agrees policies for managing each of these risks. The Group also monitors the market price risk arising from all its financial instruments held.

27. Capital management

In the period from the end of the previous financial year until the end of the fourth quarter of 2017, the Group did not make any significant changes to the objectives, policies and procedures for capital management.



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28. Contingent liabilities and contingent assets

As at 31 December 2017, the Group had only a guarantees granted by the Parent Company as collateral for loans of its subsidiaries. From the Group's point of view, there are no contingent liabilities to be disclosed as at 31/12/2017.

29. Lawsuits

As at the balance sheet date, there were no proceedings concerning liabilities or receivables of the Issuer or its subsidiaries, whose value would be at least 10% of the Issuer’s equity as well as two or more proceedings related to liabilities or receivables, whose total value would amount to at least 10% of the Issuer’s equity, and accordingly there are no disclosures in this regard.

30. Investment liabilities

As at 31 December 2017, the Group has committed to incur capital expenditures for tangible fixed assets in the amount of PLN 41,184 thousand. These amounts are related to the expansion of infrastructure and upgrade of the Cooker Factory technologies.

31. Used electrical and electronic equipment.

On 21 October 2005, most of the provisions of the Law on Waste Electrical and Electronic Equipment ("WEEE") entered into force. It requires operators placing electrical and electronic equipment on the market (manufacturers and importers) to arrange and finance the collection from the sales points of waste equipment, processing, recovery, including recycling, and disposal of waste equipment. From 1 January 2008, the operator placing household equipment on the market is obliged to ensure collection of waste household equipment from private households. Obligations arising from these rules are implemented by the Parent Company through an agreement signed with Biosystem Elektrorecykling S.A. Under this agreement, in the four quarters of 2017, the Company incurred the costs of PLN 2458 thousand in connection with organisation and collection of used appliances (cf. PLN 1.988 thousand in 2016).

32. Related party transactions

Amica is controlled by Holding Wronki, owning 34.93 % of Amica SA shares. The remaining shares are owned by many shareholders, including employees. Shareholders holding more than 5% of the shares of Amica S.A. are listed in the Note 34. The ultimate parent is a natural person, who is not obliged to prepare financial statements to be made public. Consolidated subsidiaries of the Company as at 31 December 2017:

Unit Company's registered

office Principal economic activity

Company's percentage share in the capital Functional

currency 31 December

2017

31 December

2016 Amica International GmbH Germany commercial activities 100% 100% EUR



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Amica Commerce s.r.o. the Czech Republic commercial activities 100% 100% CZK

Gram Domestic A/S Denmark commercial activities 100% 100% DKK Hansa OOO Russia commercial activities 100% 100% RUB

Amica Far East Ltd. Hong Kong purchasing process mediation services 100% 100% HKD Inteco Business Solutions Sp. z

o.o. Poland Consulting and IT services 80% 80% PLN

Nova Panorama Sp. z o.o. Poland real estate management 100% 100% PLN Nowe Centrum Sp. z o.o. Poland real estate management 100% 100% PLN

Amica Handel i Marketing Sp. z o.o. Poland marketing and promotional services 100% 100% PLN

Marcelin Management Sp. z o. o. Poland hospitality and catering services, real

estate management, 100% 100% PLN

Hansa Ukraina OOO Ukraine commercial activities 100% 100% UAH Amica Electrodomesticos S.L. Spain commercial activities 100% 100% EUR

THE CDA GROUP LIMITED United Kingdom commercial activities 100% - GBP

Profi Enamel Sp. z o.o. Poland manufacturing activities 100% 100% PLN Sideme S.A. France commercial activities 95% 39.29% EUR

Sidepar France maintenance services 95% 39.29% EUR All consolidated subsidiaries have prepared the financial statements as at 31 December 2017. Entities affiliated with the Parent Company include key management staff, subsidiaries subject to consolidation as well as other affiliated entities among which the Company includes entities controlled by the owners of the Company. Entities affiliated with the Company include: • Consolidated subsidiaries satisfying the definition of control in accordance with IFRS 10 mentioned above • Other related parties: KKS Lech Poznań, Fundacja Amicis, Arcula Sp. z o. o., Axoneo Sp. z o. o • Key personnel of the Group (executives) and the Supervisory Board • Parent companies: Holding Wronki S.A., Invesco Sp. z o.o.

The following table presents the total value of transactions with unconsolidated subsidiaries for the current and the previous reporting period.

Name of the subsidiary Revenues from core business Cost of core business

4 quarters of 2017 Year 2016 4 quarters of 2017 Year 2016 Holding Wronki SA 43 46 3,232 3,328 KKS LECH Poznań 5,143 4,922 3,262 3,695 Invesco Sp. z o.o. 2 2 - - Axoneo Sp. z o.o. 4 7 - - Sideme S.A.* 13,446 27,549 904 754 Sidepar* 50 215 - - Arcula Sp. z o.o. 13 13 - - Fundacja Amicis (Amicis Foundation) 45 53 - - Total 18,746 32,807 7,398 7,777

* Data for the period preceding the acquisition of a majority shareholding in the Company by the Parent Company.

Name of the subsidiary Trade receivables Trade liabilities

31 December 2017 31 December 2016

31 December 2017

31 December 2016

Holding Wronki SA 7 7 384 741



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KKS LECH Poznań 4,470 4,997 279 818 Invesco Sp. z o.o. - - - - Axoneo Sp. z o.o. - - - - Sideme S.A.* - 5,861 - - Sidepar* - 49 - - Arcula Sp. z o.o. 4 - - 5 Fundacja Amicis (Amicis Foundation) 7 7 - - Total 4,488 10,921 663 1,564

* Data for the period preceding the acquisition of a majority shareholding in the Company by the Parent Company. Compensation of the Key Management Personnel of the Parent Company as at 31 December 2017 in thousands of PLN and for the preceding reporting periods: 31 December 2017 31 December 2016 The Management Board Current employee benefits (salaries and surcharges) 4,394 4,063 Post-employment benefits 220 772 Severance payments - - Employee benefits in the form of shares - - Benefits paid under the incentive program 12,842 11,094 Total 17,456 15,929 The Supervisory Board Current employee benefits (salaries and surcharges) 632 638 Post-employment benefits 1 Employee benefits in the form of shares - - Benefits paid under the incentive program 2,322 1,850 Total 2,954 2,489 Key Management Staff Current employee benefits (salaries and surcharges) 2,443 2,574 Post-employment benefits - - Employee benefits in the form of shares - - Benefits paid under the incentive program 2,119 2,712 Total remuneration paid to the key management personnel (except for members of the Management Board and the Supervisory Board) 4,562 5,286

33. Events after the balance date

There were no significant events after the balance date.



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34. Other information

Shareholders having directly or indirectly at least 5% of the total number of votes at General Shareholders’ Meeting of Amica S.A.

As at 31 December 2017 Number of shares

Number of voting rights

Nominal value of shares

Share of capital

Holding Wronki S.A. 2,715,771 5,431,542 5,431,542 34.93% ING OFE* (currently: NATIONALE- NEDERLANDEN OTWARTY FUNDUSZ EMERYTALNY)

555,952 555,952 1,111,904 7.15%

Other shareholders 4,503,550 4,505,457 9,007,100 57.92%

Total 7,775,273 10,492,951 15,550,546 100.00%

* Data indicated based on the content of the notifications received by the Company from its Shareholders, and drawn up under Article 69 of the Public Offering Act of July 29, 2005.

Shares owned by the Members of the Board of Amica S.A.

Owners name Number of shares as at 31 December 2017

Acquisition (disposal) of shares

Number of shares as at 31 December 2016

Marcin Bilik* 11,900 - 11,900

Alina Jankowska-Brzóska* 1,015 - 1,015

Piotr Skubel*/** 3,000 (2,121) 5,121 * these shares are held by a person within statutory joint property of spouses ** On 14 July and 7 August 2017, the Company received notifications from Mr. Piotr Skubel (as a person discharging managerial responsibilities) on transactions involving the Company's shares i.e. the sale of a total of 2121 shares of the Company (see: Current Report No. 14 / 2017 of 14/07/2017 and Current Report No. 15/2017 of 07/08/2017). On 25 January 2018, the Company received a notification from Mr. Piotr Skubel (as a person discharging managerial responsibilities) on transactions involving the Company's shares i.e. the purchase of a total of 3071 shares of the Company (see: Current Report No. 03/2018 of 25/01/2018).

Shares owned by the Members of the Supervisory Board of Amica S.A.

Owners name Number of shares as

at 31 December 2017

Acquisition (disposal) of shares

Number of shares as at

31 December 2016 Mr Tomasz Rynarzewski 400 0 400



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Additional notes to the interim condensed consolidated financial statements in accordance with the provisions of the Regulation of the Minister of Finance of 19 February 2009 on current and interim reports published by issuers of securities and on conditions for recognition of the information required under the non-Member State regulations as equivalent:

§87 paragraph 4:

1) The share purchase transaction described in Note 7 did not take place in the audited period. 2) Information regarding seasonality – note 6 3) Information regarding to inventory impairment loss and recoverable net value – note 16 4) Information regarding impairment of financial assets, tangible assets and intangible assets – Notes 12,

13 and 14 5) Information on reserves – note 22 6) Information on reserves and deferred tax assets – note 10 7) During the reporting period, the Parent Company made an investment, which is described in Note 30. 8) In the audited period, significant purchases of tangible fixed assets resulted in material liabilities related

to investments in the Special Economic Zone, Note 30. 9) In the analysed period there were no significant litigation settlements. 10) There were no corrections of error from previous periods. The Group made only the presentation

changes described in Note 5. 11) There were no significant changes in the economic situation and operating conditions affecting the fair

value of financial assets and liabilities. 12) In the reporting period, there were no breaches of contracts, while the financial liabilities are paid in a

timely manner. All transactions entered into within the Group have been concluded on market terms. 13) There was no change in the method of determining the fair value of financial instruments 14) There were no changes in classification of financial assets 15) Transactions related to the issue, redemption and repayment of non-equity and equity securities are

described in Note 24. 16) Information on dividends – note 11 17) There have been no events after the balance sheet date that may affect the financial data presented as at

31/12/2017. 18) Information on contingent liabilities – note 28 19) There were no other events, apart from those described above, that could have a significant effect on the

assessment of the financial position, assets or financial performance of the Issuer. §87 paragraph 7:

1) Selected Financial Data – page 4, 5 2) Description of the Capital Group – note 32 3) The Group has published no forecasts 4) Information about the shareholders – note 34 5) Shares held by members of the issuer's management – note 34 6) Pending lawsuits – note 29 7) In the period covered by the report, there were no transactions between related party that have been

concluded on the terms other than market terms 8) Information on contingent liabilities – note 28 9) There were no other events apart from those, which in the Issuer's opinion are important to assess its

human resources, assets, finances, financial result and their changes as well as information, which is crucial in the assessment of the Issuer's ability to fulfil its obligations.

10) The details contained in the Report of the Management Board



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CONDENSED INTERIM FINANCIAL STATEMENTS OF THE ISSUER

AMICA S.A.

for four quarters of 2017



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INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME OF THE ISSUER for four quarters of 2017

4 quarters of 2017 Year 2016 4th quarter of

2017 4th quarter of

2016 Continued activities Revenue from sales of goods and products 1,575,850 1,600,414 457,759 444,040 Revenue from sale of services 7,272 8,222 3,177 2,119 Revenue from sales 1,583,122 1,608,636 460,936 446,159 Own sales costs 1,123,069 1,102,940 323,161 300,614 Gross profit/(loss) on sales 460,053 505,696 137,775 145,545 Other operating revenue 5,150 6,750 665 2,578 Selling costs 139,899 136,018 40,911 40,973 General administrative expenses 255,106 270,680 82,702 78,134 Other operating costs 11,538 12,368 4,529 3,823 Profit/(loss) on operating activities 58,660 93,380 10,298 25,193 Financial revenue 58,298 74,729 18,101 26,459 Financial costs 13,081 25,331 2,529 11,240 Gross profit/(loss) 103,877 142,778 25,870 40,412 Income tax 42,624 -14,130 5,686 -4,439 Net profit/(loss) on continuing operations 146,501 128,648 31,556 35,973 Discontinued activities 0 0 0 0 Profit/(loss) for the financial year on discontinued operations 0 0 0 0 0 0

Net profit/(loss) for the financial year 146,501 128,648 31,556 35,973 0 0

Net other comprehensive income Items to be reclassified to the profit / (loss) in subsequent reporting periods: -14,888 19,169 -7,633 -8,268

Exchange gain (loss) of a foreign entities Net assets hedging 4,271 0 -864 -11,918 Cash flow hedging -22,651 23,666 -8,559 1,711 Share in other total revenue of affiliates or subsidiaries

Income tax associated with other total revenues 3,492 -4,497 1,790 1,939 0 0

Items not to be reclassified to the profit / (loss) in subsequent reporting periods: 0 0 0 0

Revaluation of liabilities from employee benefits

Revaluation of tangible fixed assets Total net other comprehensive income -14,888 19,169 -7,633 -8,268 0 0

TOTAL COMPREHENSIVE INCOME FOR THE YEAR 131,613 147,817 23,923 27,705 0 0

Profit/(loss) per share: – basic from the profit for the financial

year 18.84 16.55 4.06 4.63

– basic from the profit from continued activities for the financial year 18.84 16.55 4.06 4.63

– diluted from the profit for the financial year 18.84 16.55 4.06 4.63

– diluted from the profit from continued activities for the financial year 18.84 16.55 4.06 4.63



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INTERIM CONDENSED BALANCE SHEET OF THE ISSUER as at 31 December 2017

31 December 2017 31 December 2016 ASSETS

Fixed assets 782,791 667,182 Property, plant and equipment 319,983 269,731 Investment property 0 0 Intangible assets 31,375 29,166 Investments in subsidiaries 317,361 319,365 Investment in affiliated companies 0 6,841 Derivative financial instruments 20,348 19,191 Other long-term financial assets 23,453 16,836 Deferred tax assets 70,271 6,052 Current Assets 624,628 584,896 Inventory 175,768 167,227 Receivables from deliveries and services and other receivables. 375,481 342,711 Receivables from income tax 0 0 Derivative financial instruments 16,565 9,693 Other short-term financial assets 11,901 8,739 Other short-term non-financial assets 10,321 19,198 Short-term accruals 3,084 4,369 Cash and equivalents 31,508 32,959 Assets classified as designated for sale - - TOTAL ASSETS 1,407,419 1,252,078 LIABILITIES Equity capital allocated to shareholders of the Parent Company: 742,588 653,704

Stated capital 15,551 15,551 Supplementary capital 576,774 490,855 Revaluation reserve capital 3,762 18,650 Retained earnings/Undistributed profit 146,501 128,648 Long-term liabilities 169,461 130,822 Credit, loans and other debt instruments 144,058 121,967 Non-current provisions 3,679 3,276 Liabilities from employee benefits 2,488 2,228 Other liabilities 16,868 894 Long-term deferred charges and accruals 2,368 2,457 Short-term liabilities 495,370 467,552 Liabilities from deliveries and services and other liabilities. 297,496 339,095 Credit, loans and other debt instruments 53,161 39,082 Derivative financial instruments 11,669 8,223 Liabilities from income tax 15,772 15,125 Short-term accruals 89 96 Current provisions 117,183 65,931 Liabilities directly attributable to fixed assets classified as items held for sale - -

Total liabilities 664,831 598,374 TOTAL LIABILITIES 1,407,419 1,252,078



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INTERIM CONDENSED CASH FLOW ACCOUNT OF THE ISSUER for four quarters of 2017 31 December

2017 31 December 2016

Cash flows from operating activities Gross profit/(loss) 103,877 142,778 Adjustments by items: -48,924 -3,793 Depreciation 40,043 37,145 Currency translation gains (losses) -29,832 -11,483 Interest and profit sharing (dividend) -44,570 -58,149 Profit (loss) on investing activities 453 3,904 Change in provisions 51,915 11,512 (Increase) / decrease in inventories -8,541 11,289 (Increase) / decrease in receivables -23,426 -37,028 (Increase) / decrease in liabilities, except for loans or credits -46,584 12,028 Change in prepayments and accruals 1,285 -1,875 Cash flows related to hedging 28,285 27,448 Other -179 8,007 Adjustment of instruments -11,718 -12,741 Income tax paid -6,055 6,150 Net cash flows from operating activities 54,953 138,985

Cash flows from investment activities Disposal of fixed assets and intangible assets 487 189 Purchase of fixed assets and intangible assets -88,713 -72,230 Sales of investments in subsidiaries, associates and joint ventures 25,843 - Purchase of investments in subsidiaries, associates and joint ventures -26,023 -11,250

Sales of other financial assets - - Purchase of other financial assets - - Dividends received 35,613 36,015 Interest received 24 23 Repayment of loans granted 12,245 13,435 Loans granted -22,714 -10,696 Cash flows related to trade derivatives and instruments hedging balance sheet positions 7,902 5,715

Net cash from investing activities -55,336 -38,799 Cash flows from financial activities Payment of liabilities arising from financial leases -4,144 -4,016 Acquisition of own shares - - Inflows from credits/loan taken 81,969 14,052 Repayment of loans/credits -16,512 -25,499 Issuance of debt securities 6,959 - Redemption of debt securities -15,902 -15,902 Dividends paid out -42,764 -31,101 Interest paid -10,090 -11,444 Other - - Net cash from financial activities -484 -73,910 Net increase / (decrease) in cash and cash equivalents -867 26,276 Balance sheet change in cash, including: -1,096 4,322 Net exchange rate differences 230 -286 Opening balance of cash 32,532 6,227 Closing balance of cash 31,665 32,503



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Interim condensed statement of changes in equity of the Issuer for four quarters of 2017

Stated capital Supplementary capital Own shares Revaluation reserve

capital

Retained earnings/Undistributed

profit Total equity capital

As at 01 January 2017 15,551 490,855 0 18,650 128,648 653,704 Changes to the accounting principles (policy) / Error correction - - - - - 0 As at 01 January 2017 carried forward 15,551 490,855 0 18,650 128,648 653,704 Net profit/(loss) for the financial year - - - - 146,501 146,501 Other net comprehensive income for the year - - -14,888 - -14,888 Comprehensive income for the year 0 0 0 -14,888 146,501 131,613 Dividends - - - - -42,764 -42,764 Re-booking of financial result to equity capital - 85,884 - - -85,884 0 Other changes - 35 - - 0 35 As at 31 December 2017 15,551 576,774 0 3,762 146,501 742,588

Stated capital Supplementary capital Own shares Revaluation reserve

capital

Retained earnings/Undistributed

profit Total equity capital

As at 01 January 2016 15,551 443,553 0 -519 78,462 537,047 Changes to the accounting principles (policy) / Error correction - - - - - 0 As at 01 January 2016 carried forward 15,551 443,553 0 -519 78,462 537,047 Net profit/(loss) for the financial year - - - - 128,648 128,648 Other net comprehensive income for the year - - 19,169 - 19,169 Comprehensive income for the year 0 0 0 19,169 128,648 147,817 Dividends - - - - -31,101 -31,101 Re-booking of financial result to equity capital - 47,361 - - -47,361 0 Other changes - -59 - - - -59 As at 31 December 2016 15,551 490,855 0 18,650 128,648 653,704



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Changes in the presentation of the Issuer's financial data The Company changed the presentation of cost of sales and other operating costs. In the data published for the four quarters of 2016, the cost of sale related to the replacement of defective goods with new ones were recognized under “other operating expenses”. After changes in the presentation of the costs associated with the repair of defective goods, the costs of sale have been adjusted. The adjustments of comparable data associated with the reclassification of the cost of replacement are presented in the following table. These changes do not affect the amount of earnings per share. Related to 2016 Before


Other operating revenue 9,203 -2,453 change in the presentation of

compensations for repair costs

6,750 Other operating costs 12,547 -179 12,368 Selling costs 138,292 -2,274 136,018

Related to Q4 2016 Before


Other operating revenue 3,617 -1,039 change in the presentation of

compensations for repair costs

2,578 Other operating costs 3,869 -46 3,823 Selling costs 41,966 -993 40,973

Additional notes to the interim condensed statements of the Issuer in accordance with the provisions of the Regulation of the Minister of Finance of 19 February 2009 on current and interim reports published by issuers of securities and on conditions for recognition of the information required under the non-Member State regulations as equivalent: §83: In the presented condensed interim statements of the Issuer, there have been no changes in the rules adopted for preparation of the report or changes in the applied accounting principles (policy). In the period covered by the report, there were no transactions between the Issuer and related parties which have been concluded on terms other than market equivalent to at least 10% of the issuer's equity.



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35. Approval for publication

This Extended Consolidated Quarterly Financial Statements prepared for the period from 01 January 2017 to 31 December 2017 (with comparative information) has been approved for publication by the Company's Management Board on 28 February 2018.

Signatures of all Members of the Board

Date Full name Position Signature 28/02/2018 Jacek Rutkowski President of the

Management Board

28/02/2018 Marcin Bilik Vice President of the Management Board

28/02/2018 Alina Jankowska-Brzóska

Vice President of the Management Board

28/02/2018 Wojciech Kocikowski Vice President of the Management Board

28/02/2018 Piotr Skubel Vice President of the Management Board

Signature of the person responsible for the drawing up of the financial statement mentioned. Date Full name Position Signature 28/02/2018 Michał Rakowski Chief Accountant -

Commercial Proxy

Consolidated Report of Amica SA for the four quarters of 2017

Interim financial statement complying with the requirements of IAS34"Interim Financial Reporting"

Contents

- unless indicated otherwise, all figures are shown in millions of PLN- 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

Consolidated Statements of Amica Group for the four quarters of 20172

Contents:

Overview 3Condensed financial results 5Group's sales revenue 6Revenue by product groups 7Sales by region 8Cost of sales and general administrative expenses 13Balance Sheet, CF, and indicators of the Group 14

3

Overview

Amica Spółka Akcyjna Capital Group ("Group") is composed of Amica Spółka Akcyjna ("Parent Company", "Company") and its subsidiaries. The

consolidated financial statements of the Group cover the period ended 31 December 2017 and comprise comparative data for the period ended 31

December 2016.

The Parent Company is registered in the register of entrepreneurs - the National Court Register maintained by the District Court in Poznań - Nowe

Miasto and Wilda in Poznań, 9th Commercial Division of the National Court Register, under the number KRS 000017514.

The Parent Company was issued the business statistical number REGON 570107305.

The duration of the operation of the Parent Company and companies within the Group is undefined.

The Group's core business is:

• Manufacture and sale of electric and gas-fired domestic appliances;

• Sale of domestic appliances;

• Sales of maintenance, heating, hotel, and catering services;

• Rental and leasing activities.

The direct parent of the Group is Amica S.A. The parent company of the entire Group is a natural person, who is not obliged to prepare financial

statements to be made public.


4

OverviewThe Management Board as of 31 December 2017 comprised:

Mr Jacek Rutkowski - President of the Management Board

Mr Marcin Bilik – Vice President of the Management Board

Ms Alina Jankowska-Brzóska – Vice-President of the Management Board

Mr Wojciech Kocikowski - Vice President of the Management Board

Mr Piotr Skubel – Vice President of the Management Board

The Supervisory Board as of 31 December 2017 was composed of:

Mr Tomasz Rynarzewski - Chair of the Supervisory Board/ Chair of the Operating Activities Committee

Mr Artur Małek* – Independent Member of the Supervisory Board (Vice-Chair of the Supervisory Board)

Andrzej Konopacki** – Independent Member of the Supervisory Board/Chair of the Audit Committee

Mr Tomasz Dudek - Member of the Supervisory Board

Mr Piotr Rutkowski – Member of the Supervisory Board

Mr Paweł Wyrzykowski – Member of the Supervisory Board

Amica S.A. is the parent company of the following companies: Amica International GmbH, Gram a/s, Hansa Rosja OOO, Hansa Ukraina, Amica Commerce sro, Inteco Business Solutions

Sp. z o.o., Amica Far East Ltd, Nova Panorama Sp. z o.o, Amica Handel i Marketing Sp. z o.o., Marcelin Management Sp. z o. o., Profi Enamel Sp. z o.o. Amica Electrodomesticos, CDA

Group Limited and Sideme S.A., which together form Amica Capital Group.

The parent company of Amica Capital Group is Holding Wronki S.A.

* In connection with the resignation from the supervisory body of Amica Spółka Akcyjna submitted by Mr. Dariusz Formela on 20 October 2017, the Supervisory Board of “Amica Spółka Akcyjna”, acting pursuant to § 20 paragraph 4 of the Articles of Association of “Amica Spółka Akcyjna”, on 20 October 2017, appointed by co-option Mr. Artur Małek as a Member of the Supervisory Board of “Amica Spółka Akcyjna”. Mr. Artur Małek has been appointed as a Member of the Supervisory Board of “Amica Spółka Akcyjna” for a joint term of office (of three years), as referred to in § 20 paragraph 2 of the Articles of Association of “Amica Spółka Akcyjna” (which commenced on 01 June 2016).

** In connection with the resignation from the supervisory body of Amica Spółka Akcyjna submitted by Mr. Jacek Bartmiński on 20 October 2017, the Supervisory Board of “Amica Spółka Akcyjna”, acting pursuant to § 20 paragraph 4 of the Articles of Association of “Amica Spółka Akcyjna”, on 20 October 2017, appointed by co-option Mr. Andrzej Konopacki as a Member of the Supervisory Board of “Amica Spółka Akcyjna”. Mr. Andrzej Konopacki has been appointed as a Member of the Supervisory Board of “Amica Spółka Akcyjna” for a joint term of office (of three years), as referred to in § 20 paragraph 2 of the Articles of Association of “Amica Spółka Akcyjna” (which commenced on 01 June 2016).


5

Condensed Financial Results for Q1-Q4 2017 vs. Q1-Q4 2016• In the fourth quarter, the Group achieved record-high sales

revenue (PLN 750m), which translated into PLN 2.7bn

revenue for the whole year.

• The lower gross profit margin on sales (-2.7 pp) results from:

a) acquisition of Sideme, where synergy effects have not

yet been seen,

b) changes in the sales structure [higher share of sales of

commercial goods].

c) increases in prices of raw materials, components as

well as commercial goods.

• In the second half of the year, the Group reduced the level of

general administrative expenses in relation to sales (-1.7 pp),

which partially offset the decrease in the sales margin.

• In the fourth quarter, the Group recognized an impairment

loss on disputable receivables from a Russian client (PLN 8

million).

• The Group achieved the highest net profit in history of over

PLN 146 million.

• The net profit results also from the deferred tax asset created

in connection with the operation in Kostrzyn-Słubice Special

Economic Zone.Consolidated Statements of Amica Group for the four quarters of 2017

Profit and loss account (millions PLN) Q 1- Q4 2017 Q1-Q4 2016 Change Dynamics %

Revenue from sales 2 653,9 2 474,9 179,2 107%

Gross profit on sales 768,3 782,7 -14,4 98%Gross profit margin on sales 29,0% 31,6 % -2,7 p.p.

Earnings Before deducting Interest and Taxes (EBIT) 139,5 155,0 -15,5 90%Operating profit margin 5,3% 6,3 % -1 p.p.

EBITDA* 187,9 200,5 -12,7 94%EBITDA margin 7,1% 8,1% - 1 p.p.Gross profit 118,1 138,2 -20,1 85%Gross profit margin 4,5% 5,6% -1,1 p.p.Net profit 146,3 108,5 37,9 135%Net profit margin 5,5 % 4,4 % 1,1 p.p.

**EBITDA calculated as the operating profit + amortisation

6

Group's sales revenue

• After the four quarters of 2017, the Group achieved higher sales, as compared to the

previous year, with the EBITDA margin of 7.1%.

• The Group effectively implements its revenue diversification strategy, an example of which

is the acquisition of SIDEME (28 March 2017).

• At the turn of the third and fourth quarter, Amica launched a state-of-the-art high-bay

warehouse.

• The EBITDA margin in the fourth quarter was negatively affected by the impairment loss on

receivables.

• Detailed information on the sales of goods and products in various regions are presented

later in the comments. Consolidated Statements of Amica Group for the four quarters of 2017

Revenue from sales [millions PLN]

Sales revenue EBITDA margin

Sales Structure 2017

West

Poland

South

North

East

7

Group's revenues by product groups

• Revenue from sale of heating equipment increased by PLN 11

million. This was influenced by good performance in the fourth

quarter, where the revenue growth exceeded 5%.

• At the same time, the Group increased sales of commercial goods

by PLN 166 million.


67326%

35513%

2028%

1 39053%

Struktura sprzedaży wg asortymentów

Kuchnie wolnostojące Kuchnie do zabudowy Płyty TowaryFree-standing cookers Built in cookers Hobs Goods

Sales by product groups (in millions of PLN)

Free-standing cookers Built in cookers Hobs Goods Other

Revenue structure by product groups

8

Poland

Sales by region

[million PLN]


• Given the changes in the distribution model, Amicarecorded a decline in sales of 4.5% y/y. These changestook place in the second and third quarter.

• In the fourth quarter alone, sales were at the previousyear's level.

• In the heating equipment segment, Amica is the best-selling brand on the Polish market with the market shareof 30.2% (in terms of volume).

Share in total sales:- 4.5% y/y

9

West

Sales by region[million PLN]


• Germany: In the second half of 2017, the downward trend reversed[compared to 2016], which, however, did not offset the loss on salesrecorded in the first half of the year.

• On the UK market, the Group's sales were at a similar level, while theGBP depreciation [which fell by 14% y/y] had a negative impact onrevenue.

• The acquisition of Sideme on the French market allowed the Group toexpand its operations in the western region, and to increase exports ofheating equipment to the French market by 69.9% in 2017, as comparedto the previous year.

Share in total sales:+ 18% y/y

10


North

• In the Scandinavian countries, sales of products (heating equipment) increased in 2017 as compared to the previous year. The decrease in sales y/y was mainly due to lower sales of refrigeration equipment.

• On the Danish market, the GRAM brand retained market share in heating equipment.


Share in total sales:- 5.7 % y/y

11


East


• The revenue on the eastern markets increased due to stabilization ofthe political and macroeconomic situation in the region.

• In Russia, revenues (in roubles) grew by 10%, which results from theexpansion of distribution network and the portfolio of goods.

• On the Ukrainian market, the revenue increased by 7.3% y/y. Sales ofheating equipment were 28% higher than last year.

• 36% higher sales in other Eastern markets stems mainly from highersales of ovens (+50% y/y), free-standing cookers (+42% y/y) andhobs (+43% y/y).

Share in total sales:+ 10.2 % y/y

12

Sales by region

Share in total sales:

[million PLN]

South


• On the Czech and Slovak markets, Amica Commerce reported a9.6% increase in sales year-on-year. The company has beenconsistently implementing the policy of increasing the sales ofcommercial goods and becoming a supplier of a full range ofhousehold goods for the consumers.

• In other southern markets, the Group's sales in 2017 increasedby 13%, mainly in Hungary by 79 % and in Israel by 33%.

+ 10.4 % y/y

13

Cost of sales and general administrative expenses

• Selling costs in the fourth quarter amounted to PLN 81

million and were higher by 8 million, compared to the previous

year. The nominal increase in the cost of sales results mainly

from the acquisition (service and logistics costs).

• Likewise in 2016, the Group maintains the percentage share of

selling costs in relation to revenue at around 11%.

• Administrative expenses in the fourth quarter amounted to

PLN 96 million. The share of general administrative expenses

in revenue in the entire year decreased by 1 pp to the level of

12.8%, which was mainly influenced by the second half of the

year (-1.7 pp)


Sales costs (millions of PLN)

Logistics costs Service costs Other Share in sales revenue

Administrative expenses (in millions of PLN)

Marketing costs Other administration Share of overheads in revenue

14

Balance Sheet, CF, and indicators of the Group

• The increase in the value of fixed assets results

from the completed investment projects, first and

foremost, the high bay warehouse commissioned in

September, as well as from the acquisition of

Sideme’s assets.

• On 28 March 2017, Amica S.A. Purchased shares in

Sideme S.A., which resulted in the increase of the

Group’s current assets.

• Liquidity and debt ratios remained at similar levels.


Balance sheet 2017-12-31 2016-12-31 Change in %Fixed assets 641.4 532.0 109.4 121 %Current Assets 1,108.9 949.3 159.6 117 %Total assets 1,761.0 1,492.0 269.0 118 %Equity capital 740.8 677.2 63.6 109 %Liabilities and provisions 1,020.2 814.8 205.4 125 %

Long-term 181.1 143.2 37.9 126 %Current 839.1 671.6 167.5 125 %

Total liabilities 1,761.0 1,492.0 269.0 118 %

Net cash flows 2017-12-31 2016-12-31 Changeon operating activities 109.0 195.9 -86.9on investing activities -83.7 -85.3 1.5

on financing activities -17.2 -92.2 75.0

Net cash flows 8.0 18.4 -10.4

KPIs 2017-12-31 2016-12-31 ChangeCash ratio 1.32 1.41 -0.09Quick ratio 0.85 0.91 -0.06Debt ratio 57.9% 54.6% 3.3 p.p.Net working capital 484.1 355.3 128.9

15

Signatures of Members of the Board

Date Full name Position Signature

28 February 2018 Jacek Rutkowski President of the Management Board

28 February 2018 Marcin Bilik Vice President of the Management Board

28 February 2018 Alina Jankowska-Brzóska Vice President of the Management Board

28 February 2018 Wojciech Kocikowski Vice President of the Management Board

28 February 2018 Piotr Skubel Vice President of the Management Board


AMICA SPÓŁKA AKCYJNA GROUP...4 Net profit (loss) allocated to company shareholders 146,313 108,549...

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Transcript of AMICA SPÓŁKA AKCYJNA GROUP...4 Net profit (loss) allocated to company shareholders 146,313 108,549...