Annual-Report-Of-Kino-Polska-TV-SA
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KINO POLSKA TV S.A. Annual report of Kino Polska TV SA for 2019 KINO POLSKATV S.A. KINO POLSKA TV S.A. SEPARATE ANNUAL REPORT FOR THE YEAR 2019 KINO Kino Polska TV S.A. POLSKA Separate annual report for the year 2019 TV S.A. CONTENTS.......................................................................................................................................2 I. SELECTED FINANCIAL DATA...........................................................................................................9 II. DIRECTORS' REPORT OF KINO POLSKA TV S.A. FOR 2019..........................................................10 1. Descriptio n of Kino Po lska S.A ...........................................................................................................................................11 2. T he C o m pa n y's extern a l bu sin ess environment ............................................................................................................ 12 3. INFORMATION ON THE ENTITY'S EXPECTED DEVELOPMENT..................................................................................................... 15 4. INFORMATION ON SIGNIFICANT RESEARCH AND DEVELOPMENT ACHIEVEMENTS .................................................................. 16 5. EVENTS HAVING A SIGNIFICANT EFFECT ON THE KINO POLSKA TV S.A.'S OPERATIONS, WHICH TOOK PLACE IN THE FINANCIAL YEAR AND AFTER THE BALANCE SHEET DATE, UP TO THE DATE OF APPROVAL OF THE FINANCIAL STATEMENTS................... 16 6. INFORMATION ON THE CURRENT AND ANTICIPATED FINANCIAL STANDING............................................................................ 20 7. INFORMATION ON THE PURCHASE OF TREASURY SHARES, AND IN PARTICULAR, THE PURPOSE OF THEIR PURCHASE, THEIR NUMBER AND NOMINAŁ VALUE, INDICATING THE PORTION OF SHARE CAPITAL THEY REPRESENT, THEIR PURCHASE PRICE AND SALES PRICE IN THE EVENT OF THEIR SALE.................................................................................................................................. 21 8. INFORMATION ON THE BRANCHES OR PERMANENT ESTABLISHMENTS OWNED BY THE ENTITY............................................ 21 9. INFORMATION ON FINANCIAL INSTRUMENTS............................................................................................................................ 21 10. Fin a n cia l a n d n o n - fin a n c ia l ra tio s, in clu d in g In fo rm atio n on environmental a n d em plo ym en t issu es, as WELL AS ADDITIONAL EXPLANATIONS OF AMOUNTS DISCLOSED IN THE FINANCIAL STATEMENTS......................................... 22 11. DISCUSSION OF THE BASIC ECONOMIC AND FINANCIAL VALUES AND, IN PARTICULAR, DESCRIPTION OF THE FACTORS, INCLUDING NON-TYPICAL ONES, WHICH HAVE A SIGNIFICANT IMPACT ON THE ISSUER'S OPERATIONS AND ITS FINANCIAL STATEMENTS, INCLUDING THE PROFIT OR LOSS FOR THE FINANCIAL YEAR.............................................................................. 23 12. INFORMATION ABOUT THE DEVELOPMENT STRATEGY ADOPTED BY THE ISSUER AND ITS GROUP AND ACTIONS TAKEN TO IMPLEMENT THIS STRATEGY, AND A DESCRIPTION OF THE ISSUER'S DEVELOPMENT PROSPECTS IN THE NEXT FINANCIAL YEAR..............................................................................................................................................................................................26 13. T he pan d em ic w ill potentially h ave an a d verse effect on th e eco n o m ic situ a tio n of Po la n d a n d THE OTHER c o u n tries in w h ich th e Issu er 's G roup o p er a t e s............................................................................................................27 14. Descriptio n of m a ter ia ł risk factors a n d th r ea ts related t o th e Issu er 's o p e r a t io n s ......................................31 15. In dicatio n of litig a tio n pendin g befo re co u r ts, arbitration bodies OR PUBLIC administration authorities, INCLUDING INFORMATION ON LITIGATION RELATING TO THE ISSUER'S OR ITS SUBSIDIARIES' LIABILITIES OR RECEIVABLES AMOUNTING TO AT LEAST 10% OF THE ISSUER'S EQUITY........................................................................................................ 36 16. INFORMATION ON KEY PRODUCTS, GOODS FOR RESALE AND SERVICES.................................................................................. 37 17. INFORMATION ON SALES MARKETS, TAKING INTO ACCOUNT THE BREAK-DOWN INTO DOMESTIC AND FOREIGN MARKETS, AND INFORMATION ON THE SOURCES OF SUPPLY OF PRODUCTION MATERIALS AND GOODS AND SERVICES, SPECIFYING RELIANCE ON ONE OR MORE CUSTOMERS AND SUPPLIERS, AND IN THE EVENT OF ONE CUSTOMER OR SUPPLIER HAVING A SHARE OF AT LEAST 10% OF TOTAL SALES REVENUES - THE NAME OF THAT SUPPLIER OR CUSTOMER, ITS SHARE IN THE SALES OR PURCHASES AND ITS FORMAL RELATIONSHIP WITH THE ISSUER.............................................................................................. 39 18. INFORMATION ON CONTRACTS SIGNIFICANT TO THE ISSUER'S OPERATIONS, INCLUDING CONTRACTS CONCLUDED BY AND BETWEEN THE SHAREHOLDERS OF WHICH THE ISSUER IS AWARE, INSURANCE CONTRACTS, AND COOPERATION CONTRACTS39 19. INFORMATION ON THE ISSUER'S ORGANIZATIONAL OR EQUITY RELATIONSHIPS WITH OTHER ENTITIES AND DETERMINING ITS MAIN INVESTMENTS IN POLAND AND ABROAD, IN PARTICULAR SECURITIES, FINANCIAL INSTRUMENTS, INTANGIBLE ASSETS AND REAL ESTATE, INCLUDING EQUITY INVESTMENTS MADE OUTSIDE THE GROUP OF RELATED ENTITIES AND A DESCRIPTION OF THE METHODS OF FINANCING THEM.................................................................................................................................... 40 20. INFORMATION ON TRANSACTIONS CONCLUDED BY THE ISSUER OR ITS SUBSIDIARIES WITH RELATED ENTITIES ON CONDITIONS OTHER THAN ARM'S LENGTH...................................................................................................................................................... 41 21. INFORMATION ON LOAN AGREEMENTS CONCLUDED AND TERMINATED IN A GIVEN FINANCIAL YEAR, INCLUDING AT LEAST THE AMOUNTS OF SUCH LOANS, TYPE AND AMOUNT OF INTEREST RATE, CURRENCY AND REPAYMENT DEADLINES................... 41 22. INFORMATION ON LOANS GRANTED IN THE GIVEN FINANCIAL YEAR (INCLUDING THOSE GRANTED TO THE ISSUER'S RELATED ENTITIES), GIVING AT LEAST THEIR AMOUNTS, TYPE AND INTEREST RATE, CURRENCY AND REPAYMENT DEADLINE............. 41 3 KINO Kino Polska TV S.A. POLSKA Separate annual report for the year 2019 TV S.A. 23. In fo rm atio n on w a rr a n ties a n d g u a ra n tees g ra n ted a n d r eceived in a given Fin a n cia l yea r , in pa rtic u la r WARRANTIES AND GUARANTEES GRANTED TO THE |SSUER'S RELATED ENTITIES.................................................................... 42 24. Descriptio n of THE Issu er 's USE of pro ceeds from sec u rities ISSUED in THE PERIOD COVERED BY THE REPORT UP TO THE DlRECTORS' REPORT DATE - IF ANY SECURITIES WERE ISSUED in THE PERIOD COVERED BY THE REPORT.................... 42 25. Expla n a tio n of differences betw een th e Fin a n cia l resu lts sh o w n in th e An n u al Repo r t a n d th e fo recasts of THE RESULTS FOR THE YEAR PUBLISHED PREVlOUSLY................................................................................................................ 42 26. ASSESSMENT, WlTH JUSTIFICATlON, of THE MANAGEMENT OF FINANCIAL RESOURCES, IN PARTICULAR, THE ABILITY TO MEET liabilities, a n d determination of po ten tia l th r ea t s a n d a ctio n s ta k en or in ten d ed TO BE TAKEN BY THE Issu er TO COUNTERACT THOSE THREATS.............................................................................................................................................. 42 27. ASSESSMENT of THE FEASIBILITY of lNVESTMENT PLANS, INCLUDING CAPITAL EXPENDlTURE, RELATlVE TO THE FINANCIAL RESOURCES HELD, TAKING INTO ACCOUNT POSSIBLE CHANGES IN THE STRUCTURE OF FINANCING OF lNVESTlNG ACTlVlTlES42 28. ASSESSMENT OF FACTORS AND UNUSUAL EVENTS AFFECTING THE RESULTS FOR THE FINANCIAL YEAR AND DETERMINATION OF THE DEGREE OF IMPACT OF THOSE FACTORS OR UNUSUAL EVENTS ON THE RESULTS ACHlEVED...................................... 43 29. Descriptio n of extern a l a n d in tern a l facto rs t h a t a re significant for th e development of th e Issu er 's ENTERPRISE.................................................................................................................................................................................. 43 30. CHANGES in BASIC PRINCIPLES FOR MANAGING THE |SSUER'S BUSINESS AND ITS GROUP.................................................... 43 31. In fo rm atio n on a g reem en ts, if a n y , c o n c lu d ed by th e Issu er w ith its m a n a g ers, stipulating compensation in THE EVENT OF THElR RESIGNATlON OR DISMISSAL FROM THE POSITlON HELD WITHOUT AN IMPORTANT REASON OR DUE TO THE Issu er 's bu sin ess combination BY acquisition .......................................................................................................... 43 32. In fo rm atio n on remuneration , bo n u ses or ben efits, in clu d in g th o se resu ltin g from in cen tive or bonus SCHEMES BASED ON THE |SSUER'S CAPITAL, INCLUDING PLANS OF PRE-EMPTlVE RIGHTS TO BONDS, CONVERTlBLE BONDS, SUBSCRIPTION WARRANTS (iN CASH, IN KIND OR IN ANY OTHER FORM), PAlD, PAYABLE OR CONDITlONALLY PAYABLE TO EACH OF THE lSSUER'S MANAGERS OR SUPERVlSORS, OR MEMBERS OF THE |SSUER'S ADMlNlSTRATlVE BODlES IN THE |SSUER'S bu sin ess, s e p a r a t e l y ...............................................................................................................................................................44 33. In fo rm atio n on