Asseco South Eastern Europe S A : SEE - Annual Report Standalone Q4 2022

Financial Statements

of Asseco South Eastern Europe S.A. for the year ended 31 December 2022

Financial Statements of Asseco South Eastern Europe S.A.

FINANCIAL HIGHLIGHTS OF ASSECO SOUTH EASTERN EUROPE S.A	4
STATEMENT OF PROFIT AND LOSS AND COMPREHENSIVE INCOME OF ASSECO SOUTH EASTERN EUROPE S.A	5
STATEMENT OF FINANCIAL POSITION OF ASSECO SOUTH EASTERN EUROPE S.A	6
STATEMENT OF CHANGES IN EQUITY OF ASSECO SOUTH EASTERN EUROPE S.A	8
STATEMENT OF CASH FLOWS OF ASSECO SOUTH EASTERN EUROPE S.A	9
EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS	10
I.	General information	10
II.	Basis for the preparation of financial statements and accounting policies applied	11
2.1.		Basis for preparation	11
2.2.		Compliance statement	11
2.3.		Functional currency and presentation currency	12
2.4.		Professional judgement and estimates	12
2.5.		Accounting policies applied	13
2.6.		New standards and interpretations published but not in force yet	13
2.7.		Correction of errors	14
2.8.		Changes in the comparable data	14
III.	Information on operating segments	15
IV.	Explanatory notes to the statement of profit and loss and other comprehensive income	16
4.1.		Holding activities - structure of operating revenues	16
4.2.		IT services - structure of operating revenues	16
4.3.		Structure of operating costs	18
4.4.		Financial income and expenses	21
4.5.		Corporate income tax	22
4.6.		Earnings per share	24
4.7.		Information on dividends paid out	25
V.	Explanatory notes to the statement of financial position	26
5.1.		Property, plant and equipment	26
5.2.		Intangible assets	27
5.3.		Right-of-use assets	29
5.4.		Investments in subsidiaries	30
5.5.		Impairment testing of assets	37
5.6.		Prepayments and accrued income	40
5.7.		Contract assets, trade receivables and other receivables	41
5.8.		Other financial assets	43
5.9.		Cash and cash equivalents	45
5.10. Share capital and other components of equity	46
5.11.	Bank loans	47
5.12.	Lease liabilities	48
5.13.	Other financial liabilities	49
5.14. Contract liabilities, trade payables and other liabilities	49
5.15.	Accruals	51
5.16.	Related party transactions	52
VI.	Explanatory notes to the statement of cash flows	53
6.1.		Cash flows - operating activities	53
6.2.		Cash flows - investing activities	53
6.3.		Cash flows - financing activities	54
VII.	Explanatory notes on objectives and principles of financial risk management	55
VIII.	Other explanatory notes	60
8.1.		Off-balance-sheet liabilities	60
8.2.		Seasonal business	60
8.3.		Employment	61
8.4.		Remuneration of the entity authorized to audit financial statements	61
8.5.		Remuneration of the Management Board and Supervisory Board	61
8.6.		Capital management	62
8.7.		Climate and operations of the Company	62
8.8.		Significant events after the reporting period	63
8.9.		Significant events related to prior years	63

Asseco South Eastern Europe S.A.
Financial Statements for the year ended 31 December 2022 in accordance with EU IFRS (in thousands of PLN)	2

Financial Statements of Asseco South Eastern Europe S.A. for the year ended 31 December 2022

These standalone financial statements for the year ended 31 December 2022 have been approved for publication by the Management Board of Asseco South Eastern Europe S.A. on 22 February 2023.

Management Board:

Piotr Jeleński

President

of the Management Board

Miljan Mališ

Member

of the Management Board

Michał Nitka

Member

of the Management Board

Kostadin Slavkoski

Member

of the Management Board

Person responsible for keeping the Company's accounting books:

Monika Kacprzak

Chief Accountant

Asseco South Eastern Europe S.A.
Financial Statements for the year ended 31 December 2022 in accordance with EU IFRS (in thousands of PLN)	3

Financial Highlights of Asseco South Eastern Europe S.A.

The following table presents the selected financial data of Asseco South Eastern Europe S.A.

	12 months ended	12 months ended	12 months ended	12 months ended
	31 December	31 December	31 December	31 December
	2022	2021	2022	2021
	PLN'000	PLN'000	EUR'000	EUR'000
Revenues from holding activities	90,269	112,582	19,254	24,595
Revenues from operating activities	12,344	11,616	2,633	2,538
Operating profit	75,250	99,433	16,051	21,722
Pre-tax profit	78,179	106,082	16,675	23,175
Net profit	71,210	100,371	15,189	21,927
Net cash provided by (used in) operating activities	39,822	91,347	8,494	19,956
Net cash provided by (used in) investing activities	27,748	(54,987)	5,919	(12,012)
Net cash provided by (used in) financing activities	(63,368)	(34,709)	(13,516)	(7,583)
Cash and cash equivalents	20,344	16,142	4,338	3,510
Earnings per ordinary share (in PLN/EUR)	1.37	1.93	0.29	0.42
Diluted earnings per ordinary share (in PLN/EUR)	1.37	1.93	0.29	0.42

The selected financial data disclosed in these annual financial statements have been translated into EUR in the following way:

• Items of the statement of profit and loss and statement of cash flows have been translated into EUR 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 2022 to 31 December 2022: EUR 1 = PLN 4.6883
  o in the period from 1 January 2021 to 31 December 2021: EUR 1 = PLN 4.5775
• cash and cash equivalents as at the end of the reporting period and the comparable period of the previous year have been translated into EUR 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 2022: EUR 1 = PLN 4.6899
  o exchange rate effective on 31 December 2021: EUR 1 = PLN 4.5994

In this report, all figures are presented in thousands of Polish zlotys (PLN), unless stated otherwise.

Asseco South Eastern Europe S.A.
Financial Statements for the year ended 31 December 2022 in accordance with EU IFRS (in thousands of PLN)	4

Statement of Profit and Loss and Comprehensive Income of Asseco South Eastern Europe S.A.

						12 months ended		12 months ended
	STATEMENT OF PROFIT AND LOSS			Note		31 December 2022		31 December 2021
				PLN'000		PLN'000
	Holding activities					90,269		112,582
	Dividend income	4.1		73,006	96,988
	Revenues from sale of services	4.1		17,263	15,594
	Operating activities					12,344		11,616
	Revenues from sale of IT services and software	4.2		12,344	11,616
	Total sales revenues					102,613		124,198
	Cost of sales	4.3		(22,507)	(22,677)
	Recognition/reversal of allowances for trade receivables	4.3		74		-
	Gross profit on sales					80,180		101,521
	Selling costs	4.3		(738)	(1,151)
	General and administrative expenses	4.3		(4,092)	(1,110)
	Net profit on sales					75,350		99,260
	Other operating income				28		177
	Other operating expenses				(128)	(4)
	Operating profit					75,250		99,433
	Financial income	4.4		9,368	8,438
	Financial expenses	4.4		(6,763)	(1,219)
	Recognition/reversal of impairment losses on loans granted	5.8		324		(570)
	and other financial instruments
	Pre-tax profit					78,179		106,082
	Corporate income tax	4.5		(6,969)	(5,711)
	Net profit					71,210		100,371
	Earnings per share (in PLN):
	basic earnings per share	4.6		1.37	1.93
	diluted earnings per share	4.6		1.37	1.93
						12 months ended		12 months ended
	COMPREHENSIVE INCOME:			Note		31 December 2022		31 December 2021
						PLN'000		PLN'000
	Net profit					71,210		100,371
	Other comprehensive income:					-		-
	TOTAL COMPREHENSIVE INCOME FOR THE REPORTING PERIOD					71,210		100,371

Asseco South Eastern Europe S.A.
Financial Statements for the year ended 31 December 2022 in accordance with EU IFRS (in thousands of PLN)	5