ZE PAK : Management Board’s Report from ZE PAK SA and ZE PAK SA Capital Group’s Operations in 2022 (download)

ZE PAK SA CAPITAL GROUP

MANAGEMENT BOARD'S REPORT ON ZE PAK SA's

AND ZE PAK SA CAPITAL GROUP'S ACTIVITIES IN 2022

27 APRIL 2023

	ZE PAK SA CAPITAL GROUP
	MANAGEMENT BOARD'S REPORT ON THE CAPITAL GROUP'S ACTIVITIES IN 2022
TABLE OF CONTENTS:
1.	SELECTED CONSOLIDATED FINANCIAL DATA	4
2.	DESCRIPTION OF THE COMPANY AND OF THE CAPITAL GROUP	6
	2.1. Basic information on the Company and Capital Group	6

2.2. Basic principles and changes related to the ZE PAK SA Capital Group and Company management

rules

12

2.3. Described structure of main capital deposits or main capital investments made within the Capital

Group

14

2.4. Characteristics of the main products, goods and services, and the main outlet markets and supply

sources	14
3. DESCRIPTION OF ACTIVITIES	16

3.1. Significant events in the accounting year, as well as events after the balance sheet date affecting

		current and future activities	16
	3.2. Important agreements concluded in the financial year	24
	3.3. Execution of the investment programme	28
	3.4.	Risk management	32
	3.5. Described use of emission proceeds	33
4.	MAIN BUSINESS RISK FACTORS	33
5.	DESCRIPTION OF THE FINANCIAL AND ASSET STANDING	41
	5.1. Principles of preparing a financial statement	41
	5.2. Characteristics of basic economic and financial quantities	42
	5.3. Significant off-balance sheet items	55
	5.4.	Projected financial standing	55
	5.5. Specification of factors affecting current and future financial results	56
	5.6. Unusual factors and events affecting achieved financial results	59
6.	FINANCIAL ASSET MANAGEMENT	59
	6.1. Assessment of financial asset management	59
	6.2. Assessment of investment plan implementation	59
7.	SIGNIFICANT DEVELOPMENT FACTORS AND PROSPECTS	60
8.	SHAREHOLDING STRUCTURE SPECIFICATION	62
	8.1.	Shareholding structure	62
	8.2. Acquisition of own shares	63

8.3. Stocks and shares of entities of the ZE PAK SA Capital Group held by management and supervisory

persons	63
8.4. Employee shares programme control system	64
9. DECLARATION OF COMPLIANCE WITH CORPORATE GOVERNANCE RULES	64
9.1. Set of applied corporate governance rules	64
9.2. Set of waived DPSN 2021 principles	64
9.3. Incidental violation of DPSN 2021 principles	66

9.4. Description of the main features of internal inspection and risk management systems applied in relation

	to the preparation of financial and consolidated financial statements	66
9.5.	Shareholders holding significant blocks of shares	68
9.6.	Holders of stocks providing special control rights	69
9.7.	Restrictions on exercising the voting right	69
9.8.	Restrictions on the transfer of the stock ownership right	69
9.9.	Rules of the appointment and dismissal of management and supervisory personnel	69
9.10.	Personal composition, its changes and a description of the activity of management and supervisory
	bodies	71

9.11. Operation procedure of the General Meeting, its key powers and a description of shareholders' rights

and how to exercise them	74
9.12. Description of rules regarding amendments to the Company's Articles of Association	75
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	ZE PAK SA CAPITAL GROUP
	MANAGEMENT BOARD'S REPORT ON THE CAPITAL GROUP'S ACTIVITIES IN 2022
9.13. Information on the remuneration system and the remuneration amount for management and
	supervisory personnel	75
10. DECLARATION REGARDING THE DIVERSITY POLICY	77
11. COMPANY MANAGEMENT BOARD'S NON-FINANCIAL INFORMATION STATEMENT FOR 2022
FOR THE CAPITAL GROUP	78
11.1.	Business model description	79
11.2.	Social issues	87
11.3.	Employee issues	95
11.4.	Environmental issues	106
11.5. Issue of respecting human rights	132
11.6. Issues related to counteracting corruption	134
11.7.	GRI content	136
11.8.	Taxonomy	139
12. OTHER INFORMATION	181
12.1.	Significant legal proceedings	181
12.2. Major achievements in the field of research and development	181
12.3. Information on selecting an auditing company to examine the annual consolidated financial statement....	182
12.4. Information on financial statement audit	182
12.5.	Financial projections	183

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ZE PAK SA CAPITAL GROUP

MANAGEMENT BOARD'S REPORT ON THE CAPITAL GROUP'S ACTIVITIES IN 2022

1. SELECTED CONSOLIDATED FINANCIAL DATA

	PLN thousand	PLN thousand	EUR thousand	EUR thousand
Selected	12 months of 2022	12 months of 2021	12 months of 2022	12 months of 2021
consolidated financial data	period	period	period	period
	from 1/1/2022	from 1/1/2021	from 1/1/2022	from 1/1/2021
	until 31/12/2022	until 31/12/2021	until 31/12/2022	until 31/12/2021
Sales revenues	4 200 235	2 451 209	895 897	535 491
Profit (Loss) on operating activities	351 278	(512 622)	74 927	(111 987)
Gross profit (Loss)	318 068	(518 523)	67 843	(113 276)
Net profit (Loss) for the financial year	215 380	(317 404)	45 940	(69 340)
Net profit (Loss) allocated to parent	203 307	(316 999)	43 365	(69 252)
company shareholders

Comprehensive income

Net cash from operating activities Net cash from investment activities Net cash from financial activities

Net change in cash and cash equivalents Net profit (Loss) per share

(in PLN/EUR per share)

215 989	(314 473)	46 070	(68 700)
503 256	6 555	107 343	1 432
(651 176)	(391 229)	(138 894)	(85 468)
1 104 000	393 482	235 480	85 960
956 080	8 808	203 929	1 924
4.00	(6.24)	0.85	(1.36)

Weighted average number of shares	50 823 547	50 823 547	50 823 547	50 823 547
	as at	as at	as at	as at
	31 December 2022	31 December 2021	31 December 2022	31 December 2021
Total assets	4 539 455	3 311 762	967 921	720 042
Fixed assets	1 978 515	1 273 696	421 867	276 927
Current assets	2 560 940	2 038 066	546 054	443 116
Total equity	1 214 499	524 232	258 961	113 978
Basic capital	101 647	101 647	21 674	22 100
Equity allocated to parent company
shareholders	723 696	524 627	154 309	114 064
Total liabilities	3 324 956	2 787 530	708 961	606 064
Long-term liabilities	1 199 141	794 587	255 686	172 759
Short-term liabilities	2 125 815	1 992 943	453 275	433 305
Book value per share
(in PLN/EUR per share)	23.90	10.31	5.10	2.24
Weighted average number of shares	50 823 547	50 823 547	50 823 547	50 823 547

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ZE PAK SA CAPITAL GROUP

MANAGEMENT BOARD'S REPORT ON THE CAPITAL GROUP'S ACTIVITIES IN 2022

	PLN thousand	PLN thousand	EUR thousand	EUR thousand
Selected	12 months of 2022	12 months of 2021	12 months of 2022	12 months of 2021
financial data of ZE PAK SA	period	period	period	period
	from 1/1/2022	from 1/1/2021	from 1/1/2022	from 1/1/2021
	until 31/12/2022	until 31/12/2021	until 31/12/2022	until 31/12/2021
Net revenues from the sale of products,
goods and materials	2 789 738	2 246 878	595 043	490 853
Profit/loss on operating activities	618 882	(522 023)	132 006	(114 041)
Gross profit/loss	632 260	(527 243)	134 859	(115 181)
Net profit/loss	543 584	(301 935)	115 945	(65 961)
Net cash from operating activities	636 265	(18 902)	135 713	(4 129)
Net cash from investment activities	142 885	(138 698)	30 477	(30 300)
Net cash from financial activities	30 119	119 369	6 424	26 077
Total net cash flows	809 269	(38 231)	172 615	(8 352)
Net profit per share
(in PLN/EUR per share)	10.70	(5.94)	2.28	(1.30)
Weighted average number of shares	50 823 547	50 823 547	50 823 547	50 823 547
	as at	as at	as at	as at
	31 December 2022	31 December 2021	31 December 2022	31 December 2021
Total assets	2 784 643	2 701 772	593 753	587 418
Fixed assets	779 112	842 868	166 126	183 256
Current assets	2 005 531	1 858 904	427 628	404 162
Equity	1 408 421	864 837	300 309	188 033
Basic capital	101 647	101 647	21 674	22 100
Liabilities and provisions for liabilities	1 376 222	1 836 935	293 444	399 386
Long-term liabilities	129	107 378	28	23 346
Short-term liabilities	106 282	356 335	22 662	77 474
Book value per share
(in PLN/EUR per share)	27.71	17.02	5.91	3.70
Weighted average number of shares	50 823 547	50 823 547	50 823 547	50 823 547

Selected consolidated financial data has been converted using the following exchange rates:

• data concerning the comprehensive income statement (income statement) and the cash flow report (cash flow statement) according to an exchange rate, which is the arithmetic mean of the average NBP exchange rates on each last working day of the month within the financial period, from 1 January 2022 to 31 December 2022, i.e., 4.6883 EUR/PLN, and from 1 January 2021 to 31 December 2021, i.e., 4.5775 EUR/PLN.
• data on individual items of the financial standing statement (balance sheet) according to the average EUR/PLN exchange rate set by the National Bank of Poland (NBP) as at 30 December 2022, i.e., 4.6899 EUR/PLN, and as at 31 December 2021, i.e., 4.5994 EUR/PLN.

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