ZE PAK : Consolidated financial statement of ZE PAK SA Capital Group for 2022 (download)

ZE PAK SA CAPITAL GROUP

CONSOLIDATED FINANCIAL STATEMENT

FOR THE YEAR CONCLUDED ON 31 DECEMBER 2022

27 APRIL 2023

28 APRIL 2022

ZE PAK SA CAPITAL GROUP

The consolidated financial statement for the year concluded on 31 December 2022

(in PLN thousand)

CONSOLIDATED PROFIT AND LOSS ACCOUNT	5
CONSOLIDATED FINANCIAL STATEMENT OF COMPREHENSIVE INCOME	6
CONSOLIDATED STATEMENT OF FINANCIAL STANDING	7
CONSOLIDATED STATEMENT OF CASH FLOWS	9
CONSOLIDATED STATEMENT OF EQUITY CHANGES	10
ACCOUNTING RULES (POLICIES) AND ADDITIONAL EXPLANATORY NOTES	12
1.	General	12
2.	Group composition	13
3.	Parent company's Management Board composition	16
4.	Approval of the financial statement	16
5.	Essential values based on professional judgement and estimates	16
	5.1.	War in Ukraine	16
	5.2.	Professional judgement	17
	5.3.	Uncertainty of estimates	19
6.	Basis for the development of the consolidated financial statement	22
	6.1.	Going concern assumption	22
	6.2.	Conformity statement	22
	6.3.	Functional currency and financial statements currency	22
7.	Improvements in applied accounting policies and comparative data	22
8.	New standards and interpretations, which have been issued, but are not yet effective	23
9.	Change in estimates	24
10.	Seasonality of activities	24
11.	New directions of the ZE PAK SA Capital Group's strategy	25
12.	Significant accounting rules	26
	12.1.	Consolidation rules	26
	12.2.	Calculation of items denominated in a foreign currency	26
	12.3.	Tangible fixed assets	27
	12.3.1. Strategic spare parts	27
	12.3.2. Fixed assets intended for sale	28
	12.4.	Investment property	28
	12.5.	Assets concerning overburden stripping and other mining assets	28
	12.6.	Expenses related to exploration and evaluation of mineral resources	29
	12.7.	Intangible assets	29
	12.8.	Lease	30
	12.9.	Valuation to fair value	31
	12.10. Impairment of non-financial fixed assets	32
	12.11. Borrowing costs	33
	12.12. Financial assets	33
	12.13. Impairment of financial assets	33
	12.14. Other non-financial assets	34
	12.15. Financial derivatives and hedges	34
	12.15.1. Cash flow hedge	35
	12.16. Inventories	35
	12.17. Trade and other receivables	36
	12.18. Cash and cash equivalents	37
	12.19. Interest-bearing bank loans, borrowing and debt securities	37
	12.20. Trade liabilities and other financial liabilities	37
	12.21. Other non-financial liabilities	38
	12.22. Special employee funds	38
	12.23. Own share payments	38
	12.24. Provisions	38

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ZE PAK SA CAPITAL GROUP

The consolidated financial statement for the year concluded on 31 December 2022

(in PLN thousand)

	12.25. CO2 emission allowances	40
	12.26. Revenues	40
	12.26.1.	Revenues from compensation for stranded costs	41
	12.27. Costs	42
	12.28. Other operating revenues and costs	42
	12.29. Government subsidies	42
	12.30. RES auctions won	42
	12.31. Revenues and financial costs	42
	12.32. Taxes	43
	12.32.1.	Current tax	43
	12.32.2.	Deferred tax	43
	12.32.3.	Value added tax and excise duty	44
	12.33. Net earnings per share	44
	12.34. Acquisition under joint control	44
13.	Acquisitions of ventures	44
14.	Operating segments	45
15.	Revenues and costs	49
	15.1. Revenues from contracts with clients	49
	15.2.	Other operating revenues	49
	15.3.	Other operating costs	50
	15.4.	Financial revenues	50
	15.5.	Financial costs	50
	15.6.	Costs by type	51
	15.7. Depreciation costs and impairment write-down recognized under profit or loss	52
	15.8.	Construction service contracts	52
16.	Income tax	53
	16.1.	Tax burden	53
	16.2. Effective tax rate reconciliation	53
	16.3.	Deferred income tax	55
17.	MFŚS liabilities and social assets	57
18.	Earnings per share	58
19.	Dividends paid and proposed for payment	58
20.	Tangible fixed assets	59
	20.1. Value impairment test involving the assets of the ZE PAK SA Capital Group	61
21.	Right-of-use assets and lease liabilities	63
22.	Intangible assets	..............................................................................................................................................	64
23.	Assets concerning overburden stripping and other mining assets	65
24.	Other assets	65
	24.1.	Other financial assets	65
	24.2.	Other non-financial assets	66
25.	Employee benefits	67
	25.1. Retirement benefits and other post-employment benefits	67
26.	Inventories	68
27.	Trade and other receivables	68
28.	Cash and cash equivalents	69
29.	Basic capital and supplementary/reserve capitals	71
	29.1.	Basic capital	71
	29.1.1. Nominal value of 1 share	71
	29.1.2. Shareholder rights	71
	29.1.3. Significant share shareholders	71
30.	Supplementary capital	72

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ZE PAK SA CAPITAL GROUP

The consolidated financial statement for the year concluded on 31 December 2022

(in PLN thousand)

	30.1.	Other reserve capitals	72
	30.2. Undistributed financial result and dividend payout restrictions	73
	30.3.	Non-controlling interest	73
31.	Interest-bearing bank loans and borrowings	75
32.	Provisions as well as prepayments and accruals	78
	32.1.	Accruals	78
	32.2.	Changes in provisions	79
	32.3. Description of essential provision titles	80
	32.3.1. Provisions for liabilities on account of greenhouse gas emissions (EUA)	80
	32.3.2. Provision for reclamation of ash storage yards and costs of fixed asset liquidation	81
	32.3.3. Reclamation provisions and other related to mining activity	81
	32.3.4. Provision for the redemption of energy certificates of origin	82
	32.3.5. Other provisions	82
33.	Trade liabilities, other liabilities, and prepayments and accruals	82
	33.1.	Trade liabilities and other financial liabilities (short-term)	82
	33.2.	Other non-financial liabilities	82
	33.3.	Derivative financial instruments	83
	33.4. Subsidies and long-term deferred income (long-term)	83
34.	Contingent liabilities and the description of essential court proceedings	83
	34.1.	Court proceedings	84
	34.2. Contingent liabilities associated with power plant decommissioning	85
35.	Liability payment securities	85
36.	Received guarantees	90
37.	Information on affiliates	90
	37.1. Loan granted to a Management Board member	91
	37.2. Other transactions with Management Board members	92
	37.3.	Remuneration of the Group's senior management	92

37.3.1. Remuneration paid or payable to the members of the Group's Management Board and Supervisory

		Board	92
	37.3.2. Remuneration paid or payable to other top management members	92
38.	Information on remuneration of the statutory auditor or the entity entitled to audit financial statements	92
39.	Goals and rules of financial risk management	93
	39.1.	Interest rate risk	93
	39.2.	Currency risk	95
	39.3. Raw material price risk	98
	39.4.	Credit risk	98
	39.5.	Liquidity risk	100
40.	Financial instruments	102
	40.1. Carrying value of particular financial instrument classes	102
	40.2. Items of revenues, costs, profits and losses included in the income statement, divided by financial instrument
		categories	104
	40.3. Financial instrument interest rate risk	106
	40.3.1. Collaterals	106
41.	Capital management	107
42.	Employment structure	107
43.	Significant events after the balance sheet date	108

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ZE PAK SA CAPITAL GROUP

The consolidated financial statement for the year concluded on 31 December 2022

(in PLN thousand)

CONSOLIDATED PROFIT AND LOSS ACCOUNT

for the year concluded on 31 December 2022

		Year concluded on		Year concluded on
		31 December 2022		31 December 2021
Continuing operation		0	0
Revenues, including:		4 200 235	2 451 209
Revenues from contracts with clients	15.1	4 014 061	2 190 817
Other revenues	15.1	186 174	260 392
Selling prime costs, including:	15.6, 15.7	(3 713 186)	(2 892 942)
Fixed and mining asset impairment write-down	15.7	-	(620 170)
Gross (Loss)/Profit on sales		487 049	(441 733)
Other operating revenues	15.2	41 752	64 007
Selling costs	15.6, 15.7	(14 376)	(6 091)
Overheads	15.6, 15.7	(151 973)	(119 720)
Other operating costs	15.3	(11 174)	(9 085)
(Loss)/Profit on operating activities		351 278	(512 622)
Financial revenues	15.4	56 639	11 782
Financial costs	15.5	(89 849)	(17 683)
Gross (Loss)/Profit		318 068	(518 523)
Income tax (tax burden)	16	(102 688)	201 119
Net (Loss)/Profit on continuing operations		215 380	(317 404)
Net (loss)/profit for the period		215 380	(317 404)
(Loss)/profit allocated to parent company shareholders		203 307	(316 999)
(Loss)/profit allocated to non-controlling interests		12 073	(405)
	Note	31 December 2022		31 December 2021
(Loss)/Profit per share (in PLN):		0	0
Basic/diluted for the financial year
on continued activities allocated to	18	4.00	(6.24)
parent company shareholders

Accounting rules (policies) and additional explanatory notes to the consolidated financial statement constitute its integral part.

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