Asseco Poland Spółka Akcyjna
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ANNUAL REPORT OF ASSECO POLAND SA FOR THE YEAR ENDED 31 DECEMBER 2010 ASSECO POLAND FINANCIAL HIGHLIGHTS Annual Report of Asseco Poland SA for the year ended 31 December 2010 FINANCIAL HIGHLIGHTS OF ASSECO POLAND Financial highlights of Asseco Poland are presented in the following table. 12 months 12 months 12 months 12 months ended ended ended ended 31 Dec. 2010 31 Dec. 2009 31 Dec. 2010 31 Dec. 2009 (audited) (audited) (audited) (audited) PLN ’000 PLN ’000 EUR ’000 EUR ’000 Sales revenues 1,168,375 946,440 291,773 218,044 Operating profit 333,202 309,738 83,209 71,358 Pre-tax profit 380,010 346,449 94,898 79,816 Net profit for the period reported 422,453 290,739 105,497 66,981 Net cash provided by (used in) operating 270,376 235,882 67,520 54,343 activities Net cash provided by (used in) investing (508,091) (174,036) (126,883) (40,095) activities Net cash provided by (used in) financing 380,644 (146,766) 95,056 (33,812) activities Cash and cash equivalents at the end of 173,378 30,449 43,779 7,412 period Earnings per ordinary share (in PLN/EUR) 5.98 4.26 1.49 0.98 The financial highlights disclosed in these consolidated financial statements were translated into Euro in the following way: . items of the profit and loss account and statement of cash flows were translated into Euro at the arithmetic average of mid exchange rates as published by the National Bank of Poland and in effect on the last day of each month. These exchange rates were as follows: o in the period from 1 January 2010 to 31 December 2010: EUR 1 = PLN 4.0044 o in the period from 1 January 2009 to 31 December 2009: EUR 1 = PLN 4.3406 . cash and cash equivalents as at the end of period reported and the corresponding period of the previous year have been translated into Euro at the mid exchange rates as published by the National Bank of Poland. These exchange rates were as follows: o exchange rate effective on 31 December 2010: EUR 1 = PLN 3.9603 o exchange rate effective on 31 December 2009: EUR 1 = PLN 4.1082 3 ASSECO POLAND FINANCIAL STATEMENTS INCLUDING OPINION OF INDEPENDENT CERTIFIED AUDITORS FOR THE YEAR ENDED 31 DECEMBER 2010 PREPARED IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STANDARDS Rzeszów, 18 March 2011 Annual Report of Asseco Poland SA for the year ended 31 December 2010 FINANCIAL STATEMENTS OF ASSECO POLAND SA INCLUDING OPINION OF INDEPENDENT CERTIFIED AUDITORS FOR THE YEAR ENDED 31 DECEMBER 2010 Table of contents Page PROFIT AND LOSS ACCOUNT OF ASSECO POLAND SA 8 STATEMENT OF COMPREHENSIVE INCOME OF ASSECO POLAND SA 9 BALANCE SHEET OF ASSECO POLAND SA 10 STATEMENT OF CHANGES IN EQUITY OF ASSECO POLAND SA 12 STATEMENT OF CASH FLOWS OF ASSECO POLAND SA 13 ADDITIONAL INFORMATION AND EXPLANATIONS 14 I. General information ....................................................................................................... 14 II. Basis for preparation of financial statements and accounting principles (policy) applied ............. 15 1. Basis for preparation of financial statements ................................................................ 15 2. Changes of estimates ................................................................................................ 15 3. Professional judgement ............................................................................................. 15 4. Changes in the accounting principles applied ............................................................... 16 5. New standards and interpretations published but not in force yet ................................... 18 6. Major accounting principles ........................................................................................ 19 i. Property, plant and equipment ................................................................................. 19 ii. Intangible assets ................................................................................................... 20 iii. Government subsidies ........................................................................................... 24 iv. Borrowing costs .................................................................................................... 24 v. Investment property .............................................................................................. 24 vi. Impairment of non-financial assets ......................................................................... 24 vii. Investments in subsidiary, jointly controlled and associated companies ...................... 25 viii. Combination of businesses under common control .................................................. 26 ix. Financial assets .................................................................................................... 27 x. Financial guarantee contracts.................................................................................. 28 xi. Inventories .......................................................................................................... 29 xii. Deferred expenses ............................................................................................... 29 xiii. Revenues and expenses related to completion of implementation contracts ................ 29 xiv. Trade accounts receivable .................................................................................... 30 xv. Interest-bearing bank loans and borrowings ............................................................ 31 xvi. Leases ............................................................................................................... 32 xvii. Trade accounts payable ...................................................................................... 32 xviii. Transactions and items in foreign currencies ......................................................... 32 xix. Provisions .......................................................................................................... 32 xx. Revenues ........................................................................................................... 33 xxi. Operating costs .................................................................................................. 34 xxii. Income tax and value added tax .......................................................................... 34 xxiii. Earnings per share (basic and diluted) ................................................................. 35 III. Merger with ABG SA (former DRQ SA) .............................................................................. 36 IV. Information on operating segments ................................................................................. 36 V. Notes to the Financial Statements of Asseco Poland SA ...................................................... 39 1. Sales revenues and operating costs ............................................................................ 39 2. Other operating income and expenses......................................................................... 40 3. Financial income and expenses .................................................................................. 40 4. Corporate income tax ................................................................................................ 41 All figures in thousands of PLN, unless stated otherwise 5 Annual Report of Asseco Poland SA for the year ended 31 December 2010 5. Earnings per share ................................................................................................... 44 6. Information on dividends paid out .............................................................................. 44 7. Property, plant and equipment ................................................................................... 45 8. Intangible assets ...................................................................................................... 47 9. Goodwill .................................................................................................................. 49 10. Depreciation and amortization .................................................................................... 51 11. Investments in subsidiary and associated companies .................................................... 52 12. Financial assets ........................................................................................................ 57 13. Income and expenses recognized in the profit and loss account, by category of financial instruments ............................................................................................... 59 14. Long-term and short-term deferred expenses .............................................................. 60 15. Implementation contracts .......................................................................................... 60 16. Long-term and short-term receivables ........................................................................ 61 17. Cash ....................................................................................................................... 63 18. Share capital and reserve capitals .............................................................................. 63 19. Financial liabilities .................................................................................................... 67 20. Finance lease commitments ....................................................................................... 67 21. Interest-bearing bank loans and debt securities issued .................................................. 69 22. Long-term and short-term provisions for liabilities .......................................................