grant thornton frąckowiak - amica · total assets 786,724 739,632 780,154 . 9 consolidated balance...

Grant Thornton Frąckowiak

Report of an independent statutory

auditor on examination of the

condensed interim consolidated

financial statements and the

condensed interim financial

statements for the period from 1

January 2011 to 30 June 2011.

For the shareholders of Amica Wronki Spółka Akcyjna

1 We have conducted an examination of the attached condensed consolidated

financial statements of the Capital Group, of which the parent company is Amica

Wronki S.A. (Company) with registered office in Wronki, at ul. Mickiewicza 52,

and the accompanying condensed interim financial statements, which comprise

the consolidated and separate condensed balance sheets as at 30 June 2011,

consolidated and separate condensed statements of comprehensive income,

condensed statement of changes in equity of the Capital Group and Company,

consolidated and separate condensed cash flow accounts for the period from 1

January 2011 to 30 June 2011 and selected explanatory notes,

2 The company's Management Board is responsible for compliance of these

condensed interim consolidated financial statements and the condensed interim

financial statements with International Accounting Standard 34 Interim Financial

Reporting issued in the form of regulations of the European Commission and

other applicable regulations. Our task was to review these reports.

2

3. The examination of the report was conducted according to the provisions:

— Accounting Act dated 29 September 1994 (uniform text: Journal of Laws No 152/2009, item 1223 as

amended),

— the national financial reviewing standards issued by the National Council of Statutory Auditors,

The standards referred to above oblige us to plan and conduct the examination in such a manner, in

order to obtain sufficient certainty that the audited separate and consolidated financial statements do not

contain significant irregularities.

The examination focused primarily on analysis of the condensed interim consolidated and separate

financial statements, examination of the company's ledgers and cross-referencing information obtained

from the Management Board and from the personnel responsible for the Company's finances and

accounting.

The scope and method of review of the financial statements materially differs from the studies

underlying the opinions expressed on compliance and the accuracy and clarity of annual financial

statements with the applicable accounting rules (policy), and thus we cannot offer such an opinion

regarding the attached condensed interim consolidated and separate financial statements.

4. Our review has not identified anything that would not allow us to conclude that the condensed

interim consolidated and separate financial statements have been prepared, in all material respects, in

accordance with International Accounting Standard 34 Interim Financial Reporting issued in the form of

regulations of the European Commission.

Jan Letkiewicz

Statutory auditor No 9530

Key Statutory Auditor conducting the audit on behalf of Grant Thornton Frąckowiak Spólka z ograniczoną

odpowiedzialnością Sp. k,

Poznań, pl. Wiosny Ludów 2, entity authorised to examine financial statements,

Registration number 3654

Poznań, 24 August 2011

3

Capital Group

Amica Wronki S.A.

Extended Consolidated financial statements for the first six months

A period from 1 January 2011 to 30 June 2011

Interim financial statement complying with the requirements of IAS34 „Interim Financial Reporting”

4

Wronki, 24 August 2011

CONTENTS

SELECTED CONSOLIDATED FINANCIAL DATA OF THE CAPITAL GROUP ........................................................ 5

SELECTED FINANCIAL DATA OF THE ISSUER ................................................................................................... 6

CONSOLIDATED FINANCIAL STATEMENT........................................................................................................ 7

SUPPLEMENTARY INFORMATION ................................................................................................................. 16

CONDENSED FINANCIAL STATEMENTS OF THE ISSUER ........................................................... 48

APPROVAL FOR PUBLICATION ........................................................................................................... 57

5

Selected Consolidated Financial Data of the Capital Group

thousands PLN thousands EUR

SELECTED FINANCIAL DATA 1st half of 2011 1st half of 2010 1st half of 2011 1st half of 2010

1 Net revenue from sales of products, goods and material 614,416 583,766 154,870 145,788

2 Profit (loss) on operating activities 10,916 2,700 2,751 674

3 Profit (loss) before tax 720 -1,752 181 -438

4 Net profit (loss) allocated to company shareholders -97 1,433 -24 358

5 Net profit (loss) allocated to minority shareholders 67 0 17 0

6 Net cash flows from operating activities -46,714 33,015 -11,775 8,245

7 Net cash flows from investment activities -6,883 172,929 -1,735 43,187

8 Net cash flows from financial activities 48,292 -201,254 12,173 -50,261

9 Total net cash flows -5,305 -4,690 -1,337 1,169

10 Total assets 786,724 739,632 197,342 178,405

11 Liabilities and reserves 505,195 461,946 126,723 111,425

12 Long term liabilities 41,458 44,521 10,399 10,739

13 Short term liabilities 384,582 326,517 96,469 78,759

14 Equity capital allocated to shareholders 281,677 277,684 70,656 66,980

15 Equity capital allocated to minority shareholders -148 2 -37 0

16 Share capital 15,551 17,475 3,901 4,215

17 Number of shares 7,775,273 8,737,500 7,775,273 8,737,500

18 Number of own shares for disposal 0 0 0 0

19 Number of own shares for redemption 0 962,227 0 962,227

20 Profit (loss) per ordinary share 0.00 0.18 0.00 0.05

21 Book value per share (PLN / EUR) 36.23 38.94 9.09 9.39

22 Declared dividend per share (PLN / EUR) 0 0 0 0

*In order to calculate the book value per share, equity capital was increased by the value of shares presented in equity capital with a negative sign.

Financial data was converted to the euro according to the following currency exchange rates: 30/06/2011 30/06/2010

Currency exchange rates for the profit and loss account and cash flow statement 3.9673 4.0042

exchange rate for calculating the balance sheet items 3.9866 4.1458

6

Selected financial data of the Issuer

SELECTED FINANCIAL DATA thousands PLN thousands EUR

1st half of 2011 1st half of 2010 1st half of 2011 1st half of 2010

1 Net revenue from sales of products, goods and material 493,552 489,671 124,405 122,289

2 Profit (loss) on operating activities 13,951 6,804 3,516 1,699

3 Profit (loss) before tax 7,834 -1,624 1,975 -406

4 Net profit (loss) allocated to company shareholders 6,216 2,413 1,567 603

5 Net cash flows from operating activities -48,832 24,914 -12,309 6,222

6 Net cash flows from investment activities -2,925 173,719 -737 43,384

7 Net cash flows from financial activities 49,820 -201,774 12,558 -50,391

8 Total net cash flows -1,937 -3,141 -488 -784

9 Total assets 791,661 748,449 198,580 180,532

10 Liabilities and reserves 473,752 443,918 118,836 107,077

11 Long term liabilities 41,458 44,521 10,399 10,739

12 Short term liabilities 377,479 330,652 94,687 79,756

13 Equity capital allocated to shareholders 317,909 304,531 79,744 73,455

14 Equity capital allocated to minority shareholders 0 0 0 0

15 Share capital 15,551 17,475 3,901 4,215

16 Number of shares 7,775,273 8,737,500 7,775,273 8,737,500

17 Number of own shares for disposal 0 0 0 0

18 Number of own shares for redemption 0 962,227 0 962,227

19 Net profit (loss) per ordinary share (PLN) 0.80 0.31 0.20 0.08

20 Book value per share (PLN / EUR) 40.89 43.08 10.26 10.39

21 Declared or paid dividend per share (PLN / EUR) 0 0 0 0

*In order to calculate the book value per share, equity capital was increased by the value of shares presented in equity capital with a negative sign.

Financial data was converted to the euro according to the following currency exchange rates: 30.06.2011 30.06.2010 Currency exchange rates for the profit and loss account and cash flow statement 3.9673 4.0042

exchange rate for calculating the balance sheet items 3.9866 4.1458

CONSOLIDATED FINANCIAL STATEMENT

AMICA WRONKI S.A CAPITAL GROUP

8

CONSOLIDATED BALANCE SHEET thousands PLN

situation as of 30.06.2011


as at 31.12.2010

ASSETS

I. Fixed assets 277,689 264,400 268,697

1. Intangible assets, including: 23,548 23,573 23,225

- goodwill 5,805 6,031 5,772

2. Goodwill of subsidiaries 17,985 17,507 17,913

3. Property, plant and equipment 185,645 113,230 175,455

4. Investments 19,189 20,021 19,605

4.1 Investment property 19,189 20,021 19,605

4.2 Others

5. Financial assets 6,551 62,259 11,166

5.1 Financial assets available for sale 0 56,048 0

a) in subsidiaries and affiliates 56,048

b) in other entities

5.2 Long-term loans and receivables 6,410 6,070 6,837

- for subsidiaries and affiliates 806 0 1,037

- for subsidiaries and affiliates 5,604 6,070 5,800

5.3 Other long-term financial assets 141 141 4,329

6. Long-term deferred charges and accruals 24,771 27,810 21,333

6.1 Assets from deferred taxes 24,531 27,602 21,085

6.2 Other deferred charges and accruals 240 208 248

II Current assets 509,035 471,058 507,154

1. Inventory 228,603 161,988 181,643

2. Short-term receivables 247,209 245,138 286,690

2.1 From subsidiaries and affiliates 13,474 14,272 13,381

2.2 From other entities 233,735 230,866 273,309

3. Short-term investments 22,613 51,886 29,674

3.1 Short-term financial assets 22,613 51,886 29,674

a) in subsidiaries and affiliates 590 1,704 1,609

b) in other entities 913 83 1,592

c) cash and other cash assets 21,110 50,099 26,473

3.2 Other short-term investments

4. Short-term deferred charges and accruals 10,610 12,046 9,147

III. Assets classified as items for sale 4,174 4,303

Total assets 786,724 739,632 780,154

9

CONSOLIDATED BALANCE SHEET

thousands PLN



as at 31.12.2010

LIABILITIES

I. Equity capital 281,529 277,686 304,762

1. Equity capital allocated to shareholders 281,677 277,684 304,977

1.1 Share capital 15,551 17,475 15,551

1.2 Called up share capital (negative value)

1.3 Own shares (negative value) -25,059

1.4 Supplementary capital 309,777 339,960 316,875

1.5 Revaluation reserve capital -8,875 -23,611 -9,178

1.6 Other reserve capital 9,142 9,142 9,142

1.7 Exchange gain (loss) on consolidation -18,206 -17,701 -18,601

a) currency translation gains 10,196 12,923 10,145

b) currency translation losses -28,402 -30,624 -28,746

1.8 Profit (loss) of previous years -25,615 -23,955 -23,955

1.9 Net profit (loss) -97 1,433 15,143

1.10 Write-offs on net profit during the financial year (negative value)

2. Minority shareholders -148 2 -215

II Liabilities and reserves 505,195 461,946 473,874

1. Reserves for liabilities 73,605 71,906 60,051

1.1 Reserves for deferred income tax 10,081 9,955 10,067

1.2 Retirement benefits reserves 3,179 3,207 3,195

a) long-term 3,179 3,207 3,162

b) short-term 33

1.3 Other reserves 60,345 58,744 46,789

a) long-term 4,507 6,139 6,027

b) short-term 55,838 52,605 40,762

2. Long term liabilities 41,458 44,521 40,045

2.1 To subsidiaries and affiliates

2.2 To other entities 41,458 44,521 40,045

3. Short term liabilities 384,582 326,517 368,666

3.1 To subsidiaries and affiliates 161 7,305 429


4. Accruals and deferred income 5,550 19,002 5,112

4.1 long-term 3,597 4,213 3,838

4.2 short-term 1,953 14,789 1,274

III. Liabilities associated with assets for sale 1,518

Total liabilities 786,724 739,632 780,154

Book value 281,677 304,042 304,977

Number of shares 7,775,273 8,737,500 7,775,273

Book value per share (PLN) 36.23 38.94 39.22

Number of shares taking into account own shares 7,775,273 7,775,273 7,775,273

CONSOLIDATED STATEMENT OF TOTAL REVENUE

thousands PLN

1st half of 2011 1st half of 20110 Year 2010

I. Net revenue from sales of products, goods and materials, including: 614,416 583,766 1,359,594

- from subsidiaries and affiliates 411 282 615

1. Net revenue from sale of products 350,681 372,650 852,266

2. Net revenue from sales of products, goods and materials 263,735 211,116 507,328

II. Cost of products, goods and materials sold, including: 465,654 446,443 1,028,747

- to subsidiaries and affiliates 0 0 0

1. Cost of producing goods sold 246,646 278,776 613,986

2. Cost of goods and materials sold 219,008 167,667 414,761

III. Gross profit (loss) on sales 148,762 137,323 330,847

IV. Cost of sales 43,146 42,636 115,654

V. General administrative expenses 96,154 90,626 177,835

VI. Profit (loss) on sales 9,462 4,061 37,358

VII. Other operating revenue 7,889 11,647 22,851

1. Revenue from sale of non-financial fixed assets 4 4,962 5,067

2. Subsidies 86

3. Revaluation of non-financial fixed assets 1,210

4. Other operating revenue 7,885 5,475 17,698

VIII. Other operating costs 6,435 13,008 26,294

1. Loss on sale of non-financial fixed assets 44 157

2. Revaluation of non-financial fixed assets 2,058 2,539

3. Other operating costs 4,333 13,008 23,598

IX. Profit (loss) on operating activities 10,916 2,700 33,915

X. Financial revenue 13,276 8,915 23,978

1. Share dividends, including:

- from subsidiaries and affiliates

2. Interest, including: 1,296 796 1,091


3. Profit on sale of investments

4. Gain on revaluation of investments

5. Others 11,980 8,119 22,887

11

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME C/D

thousands PLN


XI. Financial costs 23,472 13,367 35,721

1. Interest, including: 7,360 9,578 16,044

- for subsidiaries and affiliates 18 138 317

2. Loss on sale of investments


4. Others 16,112 3,789 19,677

XII.

Profit (loss) from sales of all or part of shares in subsidiaries

-468

XIII. Profit (loss) before tax 720 -1,752 21,704

XIV. Income tax 750 -3,185 6,778

1. current 5,107 12,798 23,237

2. deferred -4,357 -15,983 -16,459

XIV. Other obligatory decrease of gross profit (increased loss)

XV.

Net profit (loss) share of subsidiaries and affiliates consolidated by equity method

XV. Net profit in the financial year -30 1,433 14,926

including:

allocated to company shareholders -97 1,433 15,143

allocated to minority shareholders 67 0 -217

XVI. Total other income 721 1,676 15,111

1. Cash flow hedging instruments 449 2,919 20,713

2. Income tax from hedging instruments -146 -554 -3,914

3. Resolution of reserves for re-evaluated fixed assets 23 -99

4. Exchange gain (loss) on consolidation 395 -689 -1,589

XVII. Total revenue for the period 691 3,109 30,037

Net profit (loss) -30 1,433 14,926

Weighted average of number of ordinary shares (number of shares)

7,775,273 8,737,500 7,775,273

Number of shares issued 7,775,273 8,737,500 7,775,273

Number of own shares 0 962,227 0

Profit (loss) per ordinary share (PLN) 0.00 0.18 1.92

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Stated capital

Supplementary capital

Non-distributed

result

Assets /own shares/

available for sale

Net cash flow hedging

instruments

Reserve from revaluation

Other reserve capital

Exchange gain (loss)

on consolidati

on

Minority shareholders

capital

Total equity capital

Balance as of 01.01.2010 17,475 331,192 -12,442 -25,059 -28,131 2,155 8,431 -17,012 2 276,611

Adjustment of fundamental errors -1,299 -1,299

Balance at 01.01.2010 after adjustment of fundamental error 17,475 331,192 -13,741 -25,059 -28,131 2,155 8,431 -17,012 2 275,312

Changes in equity capital for the second quarter of 2010

8,768 -8,781 0 2,365 711 -689 2,374

Buy-back to redeem own shares 0

Re-booking of financial result to equity capital

8,719 -9,430 711 0

Total income for 1st quarter of 2010 1,433 2,365 -689 3,109

Re-booking of financial result to Company Social Provision Fund

-400 -400

Dividends -101 -101

Other changes 49 -283 -234

Transactions with a minority shareholders 0

Balance as at 30.06.2010 17,475 339,960 -22,522 -25,059 -25,766 2,155 9,142 -17,701 2 277,686

Balance as of 01.01.2010 17,475 331,192 -12,442 -25,059 -28,131 2,155 8,431 -17,012 2 276,611

Adjustment of fundamental errors -1,299 -1,299

Balance at 01.01.2010 after adjustment of fundamental error 17,475 331,192 -13,741 -25,059 -28,131 2,155 8,431 -17,012 2 275,312

Changes in equity capital in the four quarters of 2010, including -1,924 -14,317 4,929 25,059 16,798 0 711 -1,589 -217 29,450

Buy-back to redeem own shares -5,347 -5,347

Share redemption -1,924 -23,135 30,406 5,347

Re-booking of financial result to equity capital 8,719 -9,430 711 0

Re-booking of financial result to Company Social Provision Fund -400 -400

Total revenue for four quarters of 2010 -98 15,143 16,798 -1,589 -217 30,037

Settlement of subsidiary entering the group -232 -232

Dividends -101 -101

Other changes 197 -51 146


Balance as of 31.12.2010 15,551 316,875 -8,812 0 -11,333 2,155 9,142 -18,601 -215 304,762

13

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

CONTINUED

Stated capital

Supplementary

capital

Non-distributed

result

Assets /own shares/

available for sale


instruments

Reserve from

revaluation

Other reserve capital

Exchange gain (loss)

on consolidati

on

Minority shareholder

s capital


Balance as of 01.01.2011 15,551 316,875 -8,812 0 -11,333 2,155 9,142 -18,601 -215 304,762

Adjustment of fundamental errors 0 Balance at 01.01.2011 after adjustment of fundamental error 15,551 316,875 -8,812 0 -11,333 2,155 9,142 -18,601 -215 304,762 Changes in equity capital in the 2nd quarter of 2011, including 0 -7,098 -16,900 0 303 0 0 395 67 -23,233

Buy-back to redeem own shares 0

Share redemption 0 Re-booking of financial result to equity capital -1,167 1,167 0 Re-booking of financial result to Company Social Provision Fund 0

Total income for 2nd quarter of 2011 23 -97 303 395 67 691 Settlement of subsidiary entering the group 0

Dividends -5,934 -17,392 -23,326

Other changes -20 -578 -598


Balance as at 30.06.2011 15,551 309,777 -25,712 0 -11,030 2,155 9,142 -18,206 -148 281,529

CONSOLIDATED CASH FLOW ACCOUNT

thousands PLN a period from

01.01.2011 to 30/06/2011

A period from 01.01.2010 to

30.06.2010

a period from 01.01.2010

to 31/12/2010

A. Cash flows from operating activities

I. Net profit -30 1,433 14,926

Income tax 750 -3,185 6,778

II. Profit before tax 720 -1,752 21,704

III. Total adjustments -47,434 34,767 -27,467

1 Minority profit (loss) 0 0 0

2 Depreciation 10,181 14,241 23,819

3 Currency translation gains (losses) 3,839 567 4,060

4 Interest and profit sharing (dividend) 5,042 9,371 14,936

5 Profit (loss) on investment activities -256 -5,047 -5,169

6 Change in provisions 13,540 26,526 14,559

7 Change in inventory -45,178 7,671 -10,853

8 Change in receivables 24,965 29,794 -43,902

9 Change in short-term liabilities excluding credits and loans -53,843 -45,852 -15,371

10 Cash flows related to hedging -9,862 -9,946 -14,602

11 Change in prepayments and accruals -775 -2,124 -381

12 Other adjustments 7,279 12,525 13,644

13 Income tax paid -2,366 -2,959 -8,207

III. Net cash flows from operating activities (I+/-II) - indirect method -46,714 33,015 -5,763

B. Cash flows from investment activities

I. Inflows 10,876 178,238 214,616

1. Disposal of intangible and property, plant and equipment 366 176,467 205,279

2. Disposal of investments in real property and in intangible assets

3. From financial assets, including: 160 370 582

a) in subsidiaries and affiliates 0 0

- sale of financial assets

- interest

- other inflows from financial assets

b) in other entities 160 370 582


- interest 160 370 582


4. Other inflows from investment activities 10,350 1,401 8,755

II. Outflows -17,759 -5,309 -23,437

1. Acquisition of intangible and property, plant and equipment -13,400 -5,302 -17,801

2. Investments in real property and in intangible assets

3. For financial assets, including: 0 0

a) in subsidiaries and affiliates 0 0 0

- acquisition of financial assets 0 0 0

- granted long-term loans 0

b) in other entities 0 0

- acquisition of financial assets 0

- granted long-term loans

4. Dividends and profit sharing paid out to minority shareholders

5. Other outflows from investment activities -4,359 -7 -5,636

CONSOLIDATED CASH FLOW ACCOUNT (continued)

thousands PLN


30.06.2011


30.06.2010

Period from 01.01.2010 to

31.12.2010

III. Net cash flows from investment activities (I-II) -6,883 172,929 191,179

C. Cash flows from financial activities

I. Inflows 172,712 80,151 130,476

1.

Net inflows from issuance of shares and other capital instruments and from capital contributions

2. Credits and loans 59,262 1,330 20,074

3. Issuance of debt securities 113,450 78,821 110,402

4. Other inflows from financial activities 0 0

II. Outflows -124,420 -281,405 -333,970

1. Acquisition of own shares 0 0

2. Dividends and other payments to shareholders 0 0 -101

3. Profit distribution liabilities other than profit distribution payments to shareholders

4. Repayment of credits and loans -5,014 -156,538 -157,811

5. Redemption of debt securities -82,680 -111,824 -154,446

6. From other financial liabilities -12,051

7. Payment of liabilities arising from financial leases -2,750 -3,028 -5,789

8. Interest -7,319 -10,015 -15,823

9. Other outflows from financial activities -14,606

III. Net cash flows from financial activities (I-II) 48,292 -201,254 -203,494

D. Total net cash flows (A.III+/-B.III+/-C.III) -5,305 4,690 -18,078

E. Balance sheet change in cash, including: -5,363 5,463 -18,163

change in cash due to currency translation differences 52 -43 59

change in cash due to consolidation 6 -730 26

F. Opening balance of cash 25,939 44,018 44,018

G. Closing balance of cash, including 18,371 48,708 25,939

- of limited disposability 7,836 9,031 6,686

SUPPLEMENTARY INFORMATION

TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AMICA WRONKI S.A CAPITAL GROUP

General information

MSR1.126 Amica Wronki S.A. is a joint stock company registered in Poland by the District Court in Poznań – Nowe Miasto and Wilda in Poznań, 8th Commercial Division of The National Court Register on 7 June 2001 (National Court Register number KRS 17514). The Parent Company's registered office is at 52 Mickiewicza Street in Wronki. The company's core activities according to Polish business classification PKD 2007 (2751) are:

Manufacture of electrical and gas heating appliances, electrical refrigerators and washing machines,

Import of materials and export of ready products,

Wholesale and retail sales,

Sales of maintenance and repair services and heating media.

Composition of the Parent Company's Management Board as of 30/06/2011 was as follows:

Mr Jacek Rutkowski - President of the Management Board Mr Wojciech Antkowiak - Vice President of the Management Board responsible for Trade

and Marketing Mr Wojciech Kozikowski - Vice President of the Management Board responsible for Purchasing Mr Marcin Bilik - Vice President of the Management Board responsible for

Operational Affairs Mr Tomasz Dudek - Vice President of the Management Board responsible for Purchasing

and Logistics In the period covered by the financial statements or after the day of balance statement there were no changes in the composition of the Management Board of the Parent Company.

Composition of the Parent Company's Supervisory Board as of balance day 30/06/2011: Mr Tomasz Rynarzewski - Chairman of the Supervisory Board Mr Piotr Sawala - Member of the Supervisory Board Mr Wojciech Kochanek - Member of the Supervisory Board Ms Bogna Sikorska - Independent Member of the Supervisory Board Mr Grzegorz Golec - Independent Member of the Supervisory Board

In the period covered by the financial statements or after the day of balance statement there were no changes in the composition of the Supervisory Board of the Parent Company.

18

Amica Wronki S.A. is the parent company of the following companies: Amica International GmbH, Gram A/S, Sidegrove Ltd, Amica Commerce sro, Hansa Rosja ooo, Amica Far East Ltd, Inteco Business Solution Sp. z o.o, Hotel Olympic Sp. z o.o, Amica Marketing Sp. z o.o, AGD Media Sp. z o.o, , Nova Panorama Sp. z o.o., Nowe Centrum Sp. z o.o, which together form the Amica Capital Group. The parent company of Amica Capital Group is Holding Wronki S.A. Over 96.9% of the shares of Holding Wronki S.A. are owned by Invesco Sp. z o.o.

Description of major adopted accounting principles.

1. The basis for drawing up the consolidated financial statement

Ordinance of the Minister of Finance of 19 February 2009 regarding current and periodic information to be submitted by issuers of securities and the conditions for recognition as equivalent of the information whose disclosure is required under the laws of a non-member state (henceforth the "ordinance") This financial statement has been drawn up with the assumption of business continuity according to International Financial Reporting Standards (IFRS). The present report is presented based on § 83 pt. 4 of the directive, in its shortened form according to the requirements of IAS 34 „Interim financial reporting”.

Report currency. Respective values of the financial statement are presented in thousands of Polish Zlotys (PLN).

2. The differences between previously published financial data (separate and consolidated) and data presented in these financial statements for the same period.

changes in presentation of the separate and consolidated cash flow statement.

Group changed the presentation of cash flows related to the transactions involving hedging derivatives. Proceeds and expenditure related to the implementation of financial instruments within the Hedging Policy were presented in the operational part of the separate and consolidated cash flow statement and in the reports referred to they were also excluded from investing activities. Group has also changed the presentation of revenue and financial costs from ineffective financial instruments. Before the presentation change, the group corrected these items through the "other adjustments" item. After the change, the adjusted items will be presented under the item entitled "Currency translation gains (losses)." Table summarizes the presentation adjustments for the selected comparable periods.

19

Changes in the separate financial statements for the first six months of 2010

Cash flow statement item Original data Difference Adjusted data

Operating activities

Currency translation gains (losses) -961 1,528 567

Cash flows from the settlement of hedging instruments -9,946 -9,946

Other adjustments 14,327 -1,528 12,799

Investing activities

Other inflows from investment activities

Other outflows from investment activities -9,953 9,946 -7

Changes in the separate financial statements for 2010



Currency translation gains (losses) 288 3,343 3,631




Other inflows from investment activities 10,455 -1,700 8,755

Other outflows from investment activities -22,123 16,302 -5,821

Changes in the consolidated financial statements for the first six months of 2010



Currency translation gains (losses) -961 1,528 567




Other inflows from investment activities

Other outflows from investment activities -9,953 9,946 -7

Changes in the consolidated financial statements for 2010



Currency translation gains (losses) 717 3,343 4,060

Cash flows from the settlement of hedging instruments 0 -14,602 -14,602



Other inflows from investment activities 10,455 -1,700 8,755

Other outflows from investment activities -21,938 16,302 -5,636

20

changes in presentation of cost allocation to general and administrative expenses in the first six months of 2010

Group changed the presentation involving the transfer of several expense titles presented as cost of sales to general administrative expenses.

The following table summarizes adjustments to presentation


Item of statement of comprehensive income Original data Difference Adjusted data

Cost of sales 55,011 - 12 375 42,636

General administrative expenses 78,251 12,375 90,626

changes in the presentation of advances for fixed assets and the cost of services and materials

In the current financial year the Group made changes to the presentation of advances for fixed assets and other purchases. In the previous financial year these items were recognised respectively in the fixed assets and inventory groups and in the current financial year expenditures were transferred to receivables group. The following table summarizes the presentation adjustments relating to previous reporting periods Changes in the separate financial statements for the first six months of 2010

Balance sheet item Original data Difference Adjusted data

Fixed assets 111,122 -229 110,893

Inventory 126,252 - 1 848 124,404

receivables 263,028 2.077 265,105

Changes in the separate financial statements for 2010


Fixed assets 117,911 -254 117,657

Inventory 133,336 -720 132,616

receivables 300,183 974 301,157



Fixed assets 113,459 -229 113,230

Inventory 164,420 - 2 432 161,988

receivables 242,477 2,661 245,138

21

Changes in the consolidated financial statements for 2010


Fixed assets 175,709 -254 175,455

Inventory 182,645 -1,002 181,643

receivables 285,434 1,256 286,690

3. Accounting principles

In the interim financial report for the first half of 2011, the same accounting and calculation principles (policy) were applied as in the last annual financial report.

Explanatory data required by IAS34

IAS 21. Balance valuation of items expressed in foreign currency To convert cash items expressed in foreign currencies at the balance date, average currency exchange rates published by the National Bank of Poland are used. In the event that the currency sale and currency purchase rates of a leading bank (CitiBank Handlowy) was used as the closing exchange rate, the financial result would be reduced by 220,000 PLN.

IAS 34.16(b) Seasonality or cyclicality of interim operations

The Group's operations are not seasonal or cyclical. Revenue on the domestic market is subject to slight fluctuation during the calendar year. Past analyses indicate that the highest level of sales of domestic appliances is observed during the 3rd quarter of each calendar year. The lowest demand for domestic appliances is observed in the period from April to June.

IAS34.16(c) The nature and amount of items affecting assets, liabilities, equity, net income, or cash flows that are unusual because of their nature, size, or incidence

Listed below are items affecting assets, liabilities, equity, net income, or cash flows which occurred during the reporting period:

In March 2011, the Company Ares Sp. z o.o. has entered the final phase of its capital redemption. Redemption occurred from pure profit for the year 2010 (10,305,000 PLN) and by reducing the share capital of 15,570,000 PLN to 5,000 PLN.

In March 2011 the parent company had sold 100% stake in its subsidiary Ares Sp. z. o.o. Sale price of assets was set at 5,000 PLN.

22

In April 2011 Amica Wronki S.A. purchased 100% shares in a limited liability company, which was named Amica Marketing Sp. z o.o. This company will eventually manage trademarks and marketing activities. The shares were purchased for the price of 76,500 PLN.

In accordance with its Hedging Policy the Group entered in prior periods into forward contracts, which hedge:

o future revenues from export sales in euros, whose negative fair value at 30.06.2011 amounted to 6,973,300 PLN. The negative value from valuation of forward contracts was re-booked to revaluation reserve capital, as a result of which, after recognition of assets for deferred tax, revaluation capital from financial instruments was 5,648,000 PLN on the

balance date (during the reporting period the decrease of the negative value of capital from

forward contracts hedging transactions was 1,949,000 PLN).

o future purchases of goods and materials in U.S. dollars, whose negative fair value at 30.06.2011, amounted to 5,549,000 PLN. Negative valuation of forward contracts has been allocated to revaluation reserve capital; after adjusting for deferred tax revaluation reserve capital has been reduced to a value of 4,504,000 PLN (in the reporting period the negative capital due to hedging forward contracts signed was increased by 4,580,000 PLN).

o future purchases of goods and materials in EUR, whose positive fair value at 31.03.2011, amounted to 617,000 PLN. Negative valuation of forward contracts has been allocated to revaluation reserve capital; after adjusting for deferred tax revaluation reserve capital has been reduced to a value of 501,000 PLN (in the reporting period there has been a change in the valuation of capital resulting from forward hedging contracts from positive to negative by 2,757,000 PLN).

In line with the company's hedging policy, the Group also entered into interest rate swaps (IRS)

o An IRS transaction hedging against credit interest rate risk, whose negative fair value on 30.06.2011 stood at 279,700 PLN. The fair value of the IRS, reduced by assets for deferred income tax was recognised in revaluation reserve capital (226,500 PLN).

o A CIRS (EUR/CHF/PLN) transaction hedging part of the assets with long-term repayment dates expressed in EUR against credit interest rate risk and currency translation risk, whose negative fair value on 30.06.2011 stood at 6,898,200 PLN. This transaction, due to the repayment of the hedged loan, was recognised in the books as a commercial transaction. The Company intends to settle this contract under the most favourable conditions. Increasing negative fair value and the CIRS payments in the reporting period resulted in a reduction of the Company's result by 798,000 PLN.

On 30.06.2011 the subsidiary Hansa ooo held forward contracts to hedge cash flows related to purchases of euros. Since November 2010, the Company has implemented Hedging Policy, and meets the other requirements for the application Hedging Policy. The fair value of cash flow hedges relating to future transactions was recognised in the revaluation reserve capital and amounted to 5,925,000 RUB (after deduction of deferred taxes amounted to 4,740,000 RUB).

In the first six months a subsidiary Amica International concluded forward contracts to hedge cash flows related to purchases of dollars. Since January 2011, the Company has implemented Hedging Policy, and meets the other requirements for the application Hedging Policy. Therefore, the fair value of cash flow hedges relating to future transactions was recognised in the revaluation reserve capital and reached on 30.060.2001 an amount of 49,000 EUR.

23

In the first six months a subsidiary Amica Commerce concluded forward contracts to hedge cash flows related to purchases in EUR. Since January 2011, the Company has implemented Hedging Policy, and meets the other requirements for the application Hedging Policy. As at 30.06.2011, the fair value of cash flow hedges relating to future transactions was recognised in the revaluation reserve capital and reached 218,800 CZK.

On the balance day of 30.06.2011 the Group had opened: AMICA WRONKI S.A.:

forward contracts to the total nominal value of 41m EUR, hedging expected foreign currency cash flows arising from export revenues calculated as a surplus of revenue over the costs expressed in EUR (net currency position of the profit and loss account), to implement in the following years:

to be settled by 30.06.2012 - 34m EUR to be settled after 30.06.2012 - 10m EUR

A forward contract to the total nominal value of US$35.5m hedging expected cash flows in USD relating to import purchases:

to be settled by 30.06.2012 - US$29.5m to be settled after 30.06.2012 - US$6m

an interest rate swap (IRS) transaction hedging credit interest rate risk with termination date of the 11.03.2013. The balance of this credit on balance day stood at 20,033,000 PLN.

CIRS transaction of a commercial nature of the settlement date of 11.03.2013

Forward transactions of a commercial nature of the nominal value of US$3m HANSA O.O.O.:

forward contracts to the total nominal value of 18.0m EUR hedging expected cash flows relating to purchases in that currency.

Amica International:

forward contracts to the total nominal value of 2.3m USD hedging expected cash flows relating to import purchases.

Amica Commerce:

forward contracts to the total nominal value of 4.6m EUR hedging expected cash flows relating to purchases in that currency.

IAS34.16(d) Changes to estimates presented in previous reporting periods

Determining the balance of some of the Group's assets and liabilities requires an assessment of how uncertain events will affect these items on the balance date.

24

Group estimates, which could significantly affect the balance of assets and liabilities refer primarily to calculation of permanent impairment loss, the economic cycle of a given fixed asset and the reserve. In this reporting period there have been no changes to estimates concerning the economic cycle of the Group's fixed assets. In the period of first quarter of 2011 when compared with the situation at the end of 2010 estimated reserves have changed as follows:

Short-term reserves Long-term reserves

30/06/2011 31/12/2010 30/06/2011 31/12/2010

Reserves for bonuses 24,287 8,024

Reserves for warranty repairs 14,461 17,566 4,507 6,027

Reserves for salaries and holiday leave 4,007 8,190

Reserves for retirement bonuses 0 33 3,179 3,162

Other reserves 13,083 6,982

Total other reserves 55,838 40,795 7,686 9,189

IAS34.16(e) Issuances, repurchases, and repayments of debt securities

During the reporting period the Group issued short term bonds on the domestic market, while at the same time repurchasing previously issued bonds. These operations in the reporting period increased the Group's debt by 30.602,000 PLN when compared to the end of 2010. On the balance date Amica's liabilities associated with the issuance of bonds amounted to 56,441,000 PLN.

IAS34.16(f ) Dividends paid, separately for ordinary shares and other shares

During the reporting period Inteco Business Solutions paid a dividend to minority shareholders in the net amount of 156,000 PLN. In accordance with Resolution No. 17/2011 of General Shareholders' Meeting of Amica Wronki SA dated 30 May 2011 the Company calculated the gross dividend for shareholders of 3 PLN per share. The value of the dividend payable at the date 15 June 2011 amounted to 23,325,819.00 PLN. Dividend payment date in accordance with the resolution was set for 4 July 2011. Net profit for the year 2010 in the amount of 17,391,620.09 PLN and the supplementary capital created from profit of previous years amounting to 5,934,198.91 PLN was allocated to pay out the dividend.

IAS14.16(g) Revenue and results attributable to Group's individual business segments

Amica Wronki S.A. Capital Group is a manufacturer and distributor of household appliances and its production activities are held in a single location in the country. The company produces heating equipment which includes range cookers, gas and electric hobs, gas-electric free-standing as well as built-in cookers. Commercial activities include trade in refrigeration appliances, washing machines and small household appliances.

25

For the purposes of segmentation, main product groups offered by the Group have been created i.e., Cookers, Refrigerators, Washing Machines, Other Goods, Materials and Services and other items. Furthermore the Group trades in materials and sells heat energy produced internally in its own boiler house. The geographical segment which supplements the information concerning the Group's business activities presents revenue by location of the company's clients. Presented below are data from the regions where the Group achieves the highest turnover. Revenue and costs, which can be directly attributed to business segments are sourced directly from properly allocated documents. The Group separately records balance values which are associated with separate business segments. In the period covered by the financial statement, all sales revenue was allocated to operating segments. Other revenue and operating costs not allocated to operating segments mainly include general administrative expenses, such as salaries and marketing. The Group's assets which cannot be directly allocated to the business of a given operating segment are not allocated to the assets of operating segments. These are receivables, short-term investments (including cash). In the table presenting revenue and results of the different segments, the assignment of products to segments has changed in comparison with the assignment used in the first six months of 2011. In the first six months of 2011, in the "Refrigerators" segment, the Group only recognized its own products, while the refrigerators purchased for resale were included in the "Goods" segment. In the period covered by this financial statement (including comparatives) the entire range of refrigerators has been included in the "Refrigerators" segment. The same change applies to the "washing machine" segment.

The table below presents revenue and results attributable to individual segments of activity for the first half of 2011 (figures presented in thousands of PLN).

COOKERS FRIDGES WASHING MACHINES GOODS MAT/SER Other Total

for the period 01.01 to 30.06.2011

Revenue from external clients 337,523 83,580 40,732 103,661 48,920 0 614,416

Revenue from inter-segmental sales

Total revenue 337,523 83,580 40,732 103,661 48,920 0 614,416

Operating sector result 87,123 6,460 -1,045 17,300 5,185 115,022

Other information:

Depreciation 4,236 5,945 10,181

Impairment loss of non-financial fixed assets

Operating sector's assets 147,100 26,516 11,619 44,345 557,145 786,724

Expenditure on operating sector's fixed assets 6,545 3,215 9,760


Revenue from external clients 283,139 98,915 50,435 95,449 55,827 0 583,766


Total revenue 283,139 98,915 50,435 95,449 55,827 0 583,766

Operating sector result 75,860 8,270 -2,917 16,871 4,060 102,144

Other information:

Depreciation 3,948 2,825 2,598 0 0 4,870 14,241


Operating sector's assets 149,151 20,498 19,516 37,487 512,981 739,632

Expenditure on operating sector's fixed assets 8,482 1,990 632 0 0 1,330 12,434

for the period from 01.01 to 31.12.2010

Revenue from external clients 724,071 194,812 112,107 253,795 74,809 0 1,359,594


Total revenue 724,071 194,812 112,107 253,795 74,809 0 1,359,594

Operating sector result 190,861 18,477 -6,965 46,179 8,764 0 257,316

Other information:

Depreciation 8,020 2,825 2,598 0 0 10,376 23,819


Operating sector's assets 158,556 26,409 11,118 28,858 0 555,213 780,154

Expenditure on operating sector's fixed assets 16,491 368 144 0 0 11,508 28,511

Business segment - other information Adjustments of revenue, profit or loss, assets and liabilities (thousands of PLN) The Group's revenue from external clients and fixed assets (property, plant and equipment, intangible

assets and goodwill) are presented divided geographically into areas which the Group differentiates

according to the location of the external clients.

The comparison of the combined value of the revenue, result and assets of the operating sectors with

analogous items from the Group's consolidated financial statement is as follows:

from 01.01 to

30.06.2011 from 01.01 to

30.06.2010

from 01.01 to

31.12.2010

Revenue by sector

Total revenue from operating segments 614,416 583,766 1,359,594

Revenue not allocated to segments

Exclusion of revenue from inter-segmental transactions

Revenue from sales 614,416 583,766 1,359,594

Sector results

Sectors' operating result 115,022 102,144 257,316

Other revenue not allocated to segments -14,511 -8,185 22,851

Other costs not allocated to segments (-) -89,595 -91,259 -246,252

Exclusion of result from inter-segmental transactions

Profit (loss) on operating activities 10,916 2,700 33,915

Financial revenue 13,276 8,915 23,978

Financial costs (-) -23,472 -13,367 -35,721

Share in financial result of companies evaluated

-468 by the equity method (+/-)

Profit (loss) before tax 720 -1,752 21,704

30/06/2011 30/06/2010 31/12/2010

Sector assets

Total assets from operating segments 229,579 226,651 224,941

Assets not allocated to segments 557,145 512,981 555,213

Exclusion of inter-segmental transactions

Total assets 786,724 739,632 780,154

In the periods covered by the financial statement, all sales revenue was allocated to operating segments.

28

Other revenue and operating costs not allocated to operating segments mainly include general

administrative expenses, such as salaries and marketing.

The Group's assets which cannot be directed allocated to the business of a given operating segment are

not allocated to the assets of operating segments. These include: receivables, short-term investments

(cash).

Sales revenue by geographic area

thousands PLN Country I half 2011 I half 2010 2010

1 Poland 248,708 252,848 608,723 2 Germany 132,663 131,511 269,902 3 Russian Federation 104,237 68,560 213,565 4 Scandinavia 62,296 69,376 120,543 5 Czech Republic + Slovakia 18,869 18,082 40,820 6 United Kingdom 14,657 17,507 36,241 7 Other countries 32,986 25,882 69,800

TOTAL 614,416 583,766 1,359,594

* Revenues include all activities of the Group, i.e. the products (household appliances), services, materials from all Group companies.

The Group sells its products to individual clients both on the domestic market and European markets. In Germany its products are distributed through a subsidiary Amica International, which is fully controlled by Amica Wronki S.A. In North Europe sales are conducted partly through Gram, a subsidiary of Amica Wronki S.A. A similar sales model is used in the Czech Republic and Slovakia where sales are conducted through the subsidiary Amica Commerce. Sales on Russian markets is conducted primarily by a subsidiary Hansa. Information concerning main clients. Due to the need for commercial confidentiality, Group does not disclose data on key customers. IAS34.16(h) Material events subsequent to the end of the interim period that have not been reflected in the financial statements for the interim period.

After the day of balance statement there were no events that would materially impact the financial position of the Amica Group.

IAS34.16(j) Changes in contingent liabilities or contingent assets, which occurred during the first half of 2011.

29

30/06/2011 31/12/2010

To subsidiaries

Surety on payment of liabilities

Guarantees granted

The contract of surety for Deutsche Bank SA for an

amount of €500,000 (securing letters of credit

line for Hans ooo)

Corporate contract of surety for HSBC for the

amount of US$ 4,000,000 (treasury limit hedging

for Hans ooo and Amica International GmbH)

bank credit nr 93/2008 from 05.06.2008 for

140,000.00 GBP, hedged by an amount of 140,000

GBP. Guarantees granted on construction

service contracts

Disputed and judicial matters Disputed and judicial matters involving

the Tax Office

Other contingent liabilities

IAS16.73(e) Changes in fixed assets

Land Buildings and

structures

Machines and equipment

Means of transport

Other tangible

assets:

Property, plant and equipment in

production Total


Gross balance 4,240 112,322 119,717 10,917 68,115 18,294 333,605

Accumulated depreciation and adjustment write-offs 0 17,608 82,049 6,996 41,307 0 147,960

Net balance 4,240 94,714 37,668 3,921 26,808 18,294 185,645

Reclassified as fixed assets designated for sale. 0 0 0 0 0 0 0

Adjusted net balance 4,240 94,714 37,668 3,921 26,808 18,294 185,645

Situation as of 31.12.2010

Gross balance 4,258 113,462 116,021 10,681 68,132 9,638 322,192

Accumulated depreciation and adjustment write-offs 0 16,519 78,936 6,821 40,163 0 142,439

Net balance 4,258 96,943 37,085 3,860 27,969 9,638 179,753

Reclassified as fixed assets designated for sale. 18 2,348 1,932 0 0 0 4,298

Adjusted net balance 4,240 94,595 35,153 3,860 27,969 9,638 175,455

31

Buildings and

structures Machines and

equipment Means of transport Other tangible assets:

Property, plant and equipment in production

Land Total


Net balance on 01.01.2011 4,258 96,943 37,085 3,860 27,969 9,638 179,753 Acquisition through merging economic

entities Increases (purchase, production, leasing) 1,150 6,105 1,060 1,053 16,833 26,201 Sale of subsidiary (-) Decreases (sales, liquidation, adoption as

property, plant and equipment) (-) 823 829 1,131 8,219 11,002 Depreciation in accordance with the

depreciation plan (-) 1,073 3,851 746 2,168 7,838 Depreciation write-offs for liquidated or sold

assets. 823 551 1,035 2,409 Other changes (reclassification, transfer,

etc.) 18 2,306 1,889 Reversal of impairment write-offs Net translation gain (loss) 218 25 50 42 335 Reclassified as fixed assets designated for

sale.

Net balance on 30.06.2011 4,240 94,714 37,668 3,921 26,808 18,294 185,645 for the period from 01.01 to 31.12.2010

Net balance on 01.01.2010 4,143 131,500 103,167 4,970 62,017 3,694 309,491 Acquisition through merging economic

entities Increases (purchase, production, leasing) 1,993 54,497 13,817 2,120 3,825 29,466 105,718 Sale of subsidiary (-) Decreases (sales, liquidation, adoption as

property, plant and equipment) (-) 1,878 116,237 287,432 5,668 96,787 23,916 531,918 Depreciation in accordance with the

depreciation plan (-) 2,715 10,417 1,215 5,510 19,857 Depreciation write-offs for liquidated or sold

assets. 29,898 218,200 3,851 64,680 316,629 Write-offs for impairment loss Reversal of impairment write-offs Net translation gain (loss) -250 -198 -256 394 -310 Reclassified as fixed assets designated for

sale. 18 2,348 1,932 4,298

Net balance on 31.12.2010 4,240 94,595 35,153 3,860 27,969 9,638 175,455

32

IAS38.118(e) Changes in intangible assets

Goodwill

Trademarks, patents and

licenses Computer software

Costs development

work

Other intangible

assets Intangible assets

in production Total


Gross balance 846 5,504 19,486 4,104 1,108 2,355 33,403

Accumulated depreciation and adjustment write-offs 846 5,126 7,627 1,996 65 0 15,660

Net balance 0 378 11,859 2,108 1,043 2,355 17,743


Adjusted net balance 0 378 11,859 2,108 1,043 2,355 17,743


Gross balance 846 5,385 19,969 4,199 1,995 806 33,200

Accumulated depreciation and adjustment write-offs 846 5,006 7,364 1,654 872 0 15,742

Net balance 0 379 12,605 2,545 1,123 806 17,458


Adjusted net balance 0 374 12,605 2,545 1,123 806 17,453

33

Trademarks Patents and

licenses Computer software

Costs development

work Other intangible

assets Intangible assets in

production Total


Net carrying value on 01.01.2011 0 379 12,605 2,545 1,123 806 17,458 Acquisition through merging economic entities Increases (purchase, production, leasing) 264 204 1,881 2,349 Sale of subsidiary (-)

Decreases (sales, liquidation, adoption as intangible assets) (-) 162 3 575 740

Other changes (reclassification, transfer, etc.) 4 4 Revaluation to fair value (+/-) Depreciation in accordance with the

depreciation plan (-) 107 885 342 80 -439 975 Depreciation write-offs for liquidated or sold

assets. 0 Write-offs for impairment loss (-) Reversal of impairment write-offs Net translation gain (loss) (+/-) -62 -95 -196 -353 Reclassified as fixed assets designated for sale. 0

Net carrying value on 30.06.2011 0 378 11,859 2,108 1,043 2,355 17,743

for the period from 01.01 to 31.12.2010

Net carrying value on 01.01.2010 0 800 13,704 8,600 1,708 2,859 27,671 Acquisition through merging economic entities Increases (purchase, production, leasing) 0 859 3,270 28 2,455 6,612 Sale of subsidiary (-)

Decreases (sales, liquidation, adoption as intangible assets) (-) 286 474 13,565 692 4,508 19,525

Other changes (reclassification, transfer, etc.) Revaluation to fair value (+/-) Depreciation in accordance with the

depreciation plan (-) 334 1,860 910 181 3,285 Depreciation write-offs for liquidated or sold

assets. 199 449 5,150 282 6,080 Write-offs for impairment loss (-) Reversal of impairment write-offs Net translation gain (loss) (+/-) -69 -22 -91 Reclassified as fixed assets designated for sale. 5 5

Net balance on 31.12.2010 0 374 12,605 2,545 1,123 806 17,453

IFRS 7.8 Financial asset and liabilities categories

Financial assets

*Categories of financial instruments according to IAS 39

Total

Loans and receivables

Financial assets at fair

value through profit or loss -

held for trading

Financial assets at fair value through profit or

loss - initially categorised as

evaluated at fair value

Investments held to

maturity

Financial assets

available for sale

Hedging derivatives

Assets outside the scope of IAS

39


Fixed assets: Receivables and loans 6,410 6,410 Derivative financial instruments 0 Other long-term financial assets 141 141 Current assets: Receivables from deliveries and services and

other receivables. 231,296 15,913 247,209 Loans 905 905 Derivative financial instruments 598 598 Other short-term financial assets 0 Cash and equivalents 21,110 21,110

Total financial asset category 238,611 0 0 0 0 598 37,164 276,373


Fixed assets:

Receivables and loans 10,881 10,881

Derivative financial instruments 144 144

Other long-term financial assets 141 141

Current assets: 0 Receivables from deliveries and services and

other receivables. 241,418 45,274 286,692

Loans 1,745 1,745

Derivative financial instruments 214 1,240 1,454

Other short-term financial assets 0 Cash and equivalents 26,473 26,473

Total financial asset category 254,044 358 0 0 1,240 71,888 327,530

The fair value of the disclosed instrument is equal to their book value

35

Financial liabilities

*Categories of financial instruments according to IAS 39 Total

Financial liabilities at fair value

through profit or loss - held for

trading

Financial liabilities at fair value through

profit or loss - initially categorised as

evaluated at fair value

Financial liabilities at amortized cost (ZZK)

Hedging derivatives Liabilities outside

the scope of IAS 39


Long term liabilities: Credit, loans and other debt instruments 20,698 20,698 Financial leasing 12,103 12,103 Derivative financial instruments 5819 2838 8,657 Other liabilities Short term liabilities: Liabilities from deliveries and services and other

liabilities. 172,969 45,304 218,273 Credit, loans and other debt instruments 146,837 146,837 Financial leasing 5,993 5,993 Derivative financial instruments 1138 12,341 13,479 Liabilities reclassified as items for sale 0

Total financial liabilities category 6,957 0 340,504 15,179 63,400 426,040


Long term liabilities: Credit, loans and other debt instruments 20,033 20,033 Financial leasing 10,054 10,054 Derivative financial instruments 5606 4352 9,958 Other liabilities 0 Short term liabilities: 0 Liabilities from deliveries and services and other

liabilities. 228,499 60,209 288,708 Credit, loans and other debt instruments 62,164 62,164 Financial leasing 5,140 5,140 Derivative financial instruments 1289 11,365 12,654 Liabilities reclassified as items for sale 1267 1,267

Total financial liabilities category 6,895 311,963 15,717 75,403 409,978

Inventory IAS 2.36 (b) IAS 1.75 (c) 30/06/2011 31/12/2010

Materials 47,027 46,874

Semi-finished products and production in progress 6,414 3,298

Finished products 109,207 61,978

Goods 65,955 69,493

Total 228,603 181,643

The values given in the table above include inventory write-downs of 6,613,000 PLN on the reporting date, a total for all groups (value of write-downs at 31.12.2010 amounted to 7,356,000 PLN)

Short-term receivables

30/06/2011 31/12/2010

a) from subsidiaries and affiliates 13,474 13,381

- from deliveries and services 13,474 13,381

b) from other entities 233,735 273,309

- from deliveries and services 213,154 218,278

- from tax, customs, social security and other benefits 15,913 45,274

- advance payments 2,728 1,256

- other receivables 1,940 8,501

Net short-term receivables, total 247,209 286,690

c) allowance for uncollectible accounts 18,443 15,769

Gross short-term receivables, total 265,652 302,459

Receivables from deliveries and services - maturing after balance date:

Receivables from deliveries and services 30/06/2011 31/12/2010

up to 1 month 85,850 70,503

1 to 3 months 94,868 119,710

3 to 6 months 9,696 7,702

6 months to 1 year 457 293

more than 1 year 700 1,492

overdue receivables 51,142 45,370

Gross receivables 242,713 245,070

allowance for uncollectible accounts 16,085 13,411

Total net receivables 226,628 231,659

IAS 32.63.(b) Contractual conditions for final repayment of loans and debt instruments (according to the payment of the last instalment): 30/06/2011 31/12/2010

up to 12 months 146,837 62,164

up to 3 years 20,699 20,033

up to 5 years 0 0

Total 167,536 82,197

37

IAS 1.51, 52 Identification of other short term and long term liabilities (excluding long-term and short-term loans credits and debt instruments): Other liabilities 30/06/2011 31/12/2010

Long term liabilities 20,759 20,012

- liabilities from leasing agreements 12,103 10,054

- other liabilities, financial instruments 8,656 9,958

Short term liabilities 237,745 307,769

- liabilities from subsidiaries and affiliates 161 429

- trade liabilities due to other entities 157,529 225,462

- regulatory liabilities 16,783 52,560

- liabilities from remuneration 4,754 5,220

- other liabilities; leasing, instruments 19,472 17,794

- other liabilities 39,041 6,299

- advance payments for deliveries 5 5

Total 258,504 327,781

including those associated with assets designated for sale: 1,297

The Group has liabilities from the purchase of property, plant and equipment amounting to 2,503,000 PLN (value at 31.12.2010 was 2,477,000 PLN)

Liabilities from deliveries and services according to due dates: Liabilities from deliveries and services 30/06/2011 31/12/2010

up to 1 month 73,362 111,042

1 to 3 months 52,707 95,521

3 to 6 months 627 19

6 months to 1 year 0 46

more than 1 year 0 0

overdue liabilities 30,994 19,263

Total 157,690 225,891

including those associated with assets designated for sale: 0 1,267

IAS 193 Costs by type 01.01.2011-30.06.2011 01.01.2010-30.06.2010

Depreciation of fixed assets and intangible assets 8,813 14,768

Use of materials and energy 247,805 206,957

Third-party services 40,261 33,533

Taxes and fees 2,997 3,057

Salaries 55,188 55,207

Cost of employee benefits 11,983 11,995

Other costs by type 64,922 67,339

Total costs by type 431,969 392,856

Change in product inventory -35,786 22,822

Cost of products manufactured for own needs -10,237 -3,640

Cost of sales (negative) -43,146 -42,636

General administrative expenses (negative) -96,154 -90,626

Cost of producing goods sold 246,646 278,776

Internal cost of goods and materials sold 219,008 167,667

38

Other remaining operating revenue

01.01.2011-30.06.2011 01.01.2010-30.06.2010

Other operating revenue 7,885 5,475

- bonuses received on purchases 3,137 673

- subsidies to fixed assets 480 1,040

- reimbursement of international VAT payments 3 29

- compensation received 2,088 432

- income from additional warranty 63 42

- dissolved reserves 151 22

- returned goods 149

- surplus on inventory 9 1,752

- leasing of investments 140 96

- other items 1,814 1,240

Other operating costs 01.01.2011-30.06.2011 01.01.2010-30.06.2010

Other operating costs 4,333 13,008

- replacement of faulty equipment 704 1,207

- shortages and damage 10 1,182

- grants 678 328

- compensation for former employees 10 925

- inventory scrapping 1,867 1,292

- asset liquidation and sale 98

- returned goods 106

- recycling

- penalties and fines 41 138

- registered receivables 171 320

- costs associated with closing the production of refrigerators and washing machines 1,718

- registered investment expenditure

- subsidies for fixed assets recognised as revenue of future periods 4,596

- depreciation and tax on fixed property and long-term investments 500 565

- other operating costs 254 631

Transactions with subsidiaries

IAS1.126(c) IAS24.12 Amica Wronki is controlled by Holding Wronki, owning 41.08 % of Amica Wronki SA shares. The remaining shares are owned by many shareholders, including employees. Shareholders holding more than 5% of the shares of Amica Wronki SA are listed on page 39. The holding entity of the highest order is a natural person who owns (indirectly) over 96.9% of shares in Holding Wronki S.A.; This entity does not publish financial reports available to the public. IAS27.40 Subsidiaries of the Company subject to consolidation during the first six months of 2011:

Name and country of the subsidiary's registered office

% of owned shares in the subsidiary (directly)

The nature of predominant activity

Gram A/S, Denmark 100 Trade in Amica products in Scandinavia

Amica Commerce, the Czech Republic

100 Trade in Amica products in the Czech Republic and Slovakia

Sidegrove Holdings Ltd, Cyprus 100 Provision of services

Hansa Russia 100 Commerce

Amica International 100 Commerce

AGD Media Sp. z o.o. 100 Commercial activities via the Internet

Amica Far East 100 Commerce and provision of services

Hotel Olympic Sp. z o.o. 100 hospitality and catering services

Amica Marketing Sp. z o.o. 100 Marketing activities

Nova Panorama Sp. z o.o. 100 Lease of retail space

Nove Centrum Sp. z o.o. 100 Lease of warehouse space

Inteco Business Solutions Sp. z o.o. 80 Consulting and IT services

All consolidated subsidiaries prepared the financial statements for the 30/06/2011. IAS24.17,22 Entities affiliated with Amica according to the provisions of IAS 24: Entities affiliated with the Parent Company include key management staff, subsidiaries subject to consolidation and subsidiaries excluded from consolidation, as well as other affiliated including entities controlled by Amica's owners. Subsidiaries include:

Consolidated subsidiaries – listed in the above table

Parent companies: Holding Wronki S.A, Invesco Sp. z o.o.

Entities affiliated by key personnel: Stowarzyszenie Kultury Fizycznej, KKS Lech Poznań, Marcelin Management Sp. z o.o., Fundacja Amicis

Key staff of Amica Wronki (members of management) Transactions with affiliated entities conducted in the 1st half of 2011 were to a large extent of a commercial nature and were entered into under market conditions, and these transactions resulted from current operational activities conducted by these companies. The largest by value group of typical transactions with affiliated entities were operations associated with the sales of products and goods produced by Amica Wronki S.A.

40

List of commercial transactions with affiliated entities

Name of the subsidiary Revenues from core business Cost of core business

30/06/2011 30/06/2010 30/06/2011 30/06/2010

Holding Wronki SA 23 3 1035

KKS LECH Poznań 389 275 920 2258

Stowarzyszenie Kultury Fizycznej 6 4

Invesco Sp. z o.o. 10

Marcelin Sp. z o.o. 1 10

Amicis Foundation 12

Total 441 282 1,965 2,258

Name of the subsidiary Trade receivables Trade liabilities

30/06/2011 31/12/2010 30/06/2011 31/12/2010

Holding Wronki SA 8 4 63 61

KKS LECH Poznań 2,779 2,672 281

Stowarzyszenie Kultury Fizycznej 3 28

Amicis Foundation 4

Invesco Sp. z o.o. 10,665 10,655

Marcelin Sp. z o.o. 15 22

Total 13,474 13,381 63 342

There were no allowances for uncollectible accounts from subsidiaries and affiliates, and thus no costs for this item were included in the profit and loss account. The balance of receivables as of 30.06.2011 due to loans granted to subsidiaries was 1,396,000 PLN, including interest on granted loans owed to the Company at the amount of 20,000 PLN.

IAS37.14a Recognised reserves. According to the provisions of the Act on recycling of used electrical and electronic appliances, the company is obliged to organise and finance recycling of used household appliances. The obligation to create a reserve to finance these activities results from paragraph 14 lit. a IAS 37. Interpretation IFRIC 6 „Liabilities arising from Participating in a Specific Market – Waste”, as the agreed interpretation of the provisions of paragraph 14 lit. a IAS 37. IFRIC 6 concludes that the event that triggers liability recognition an obligation to create the reserve is participation in the market during a measurement period. Consequently, the obligation resulting from the cost of disposal of used household equipment does not arise at the moment when these products are produced or sold. Since the obligation associated with used household equipment is related to participation in the market during the measurement period and not with production or the sale of used products to be disposed of, the obligation arises only in the event of participation in the market during the measurement period and lasts as long as participation in the market. Determination of the time of occurrence of an event triggering the obligation may be independent of the specific period during which action is taken to manage and waste and during which the related costs are incurred. Obligations arising from these rules are implemented by the Company through an agreement signed with Biosystem Elektrorecykling S.A. Pursuant to this agreement, the Company incurred the cost 1,327,000 PLN associated with organising and collection of used appliances during the first six months of 2011 (for the six months of 2010 the amount was 1,278,000 PLN).

41

So far the company has not created a reserve for future liabilities from this obligation, since it was not possible to reliably estimate the amount of this liability according to the provisions of paragraph 14 lit. c IAS 37. The company conducts analyses of available market data concerning the cost of disposal and recycling and is planning to create the reserve in future periods.

Other information

The position of the Board concerning the possibility of meeting the previously released forecasts for the current financial year.

The Group has not published financial forecasts for the current financial year. Shareholders owning directly or indirectly at least 5% of the total number of voting rights in the General Shareholders' Meeting of Amica Wronki S.A.

Shareholder's name Number of shares % of owned share capital of Amica

Number of voting rights

% of total number of voting rights

Holding Wronki 3,194,144 41.08 6,084,489 57.02

Noble TFI S.A. 584,015 7.51 584,015 5.47

ING OFE 555,952 7.15 555,952 5.21

Quercus TFI S.A. 538,661 6.93 538,661 5.05

On 30.05.2011 the General Shareholders' Meeting of Amica Wronki SA adopted a Share Buyback Programme in order to redeem them. The Company will purchase no more than 10% of the share capital by 31.12.2014. The General Shareholders' Meeting has allocated 150m PLN for the share buyback programme and this will be financed from own resources.

Shares owned by the Management Board of Amica Wronki

Shares owned by the Members of the Board of Amica Wronki S.A.:

Owners name Number of shares as of

31.12.2010 Acquisition (disposal) of

shares Number of shares as of

30.06.2011

Mr Andrzej Kadziński 4,600 0 4,600

Mr Marcin Bilik* 11,419 0 11,419

* these shares are held by a person within statutory joint property of spouses Shares owned by the Members of the Supervisory Board of Amica Wronki S.A.

Owners name Number of shares as of

31.12.2010 Acquisition (disposal) of

shares Number of shares as of

30.06.2011

Mr Tomasz Rynarzewski 400 0 400

A presentation of the main proceedings being conducted by courts, the appropriate authority for arbitration or public administration bodies is outlined below.

item Parties to the

proceedings

Date claim made /

debts declared

Subject of the

litigation

Document

reference

Value of the subject

of litigation

Court / Bailiff

1. Amica Wronki S.A. vs

Krzysztof Nowak

Kalmex Hurt-Detal

28.09.2010 for payment IX GNC 845/10 148,872.70 PLN Regional Court in Poznań, 9th

Commercial Division

Amica Wronki joined the proceedings conducted jointly with other creditors to secure the inheritance and inventory. Bailiff appointed to draw up an

inventory has drawn up a list, and the Law Office has requested a copy


Duo Net sp. z o.o.

based in Warsaw

22.10.2008 for payment IX GNc 584/08/4 3,000,000.00 PLN Bailiff Hanna Pagacz at the

District Court in Wieluń

AWSA as a mortgage and executive creditor within a the statutory period files a declaration of the acquisition of property for the price of 2/3 of the estimate

, i.e. 3.8 million. Court is expected to be sitting on adjudication of the property. Until the date of the statement the Law Office has not received a letter from

the Court on the determination date of the meeting.


Melgaz - A.

Pogorzelczyk, A.

Barłożek spółka

jawna; A.

Pogorzelczyk, A.

Barłożek (partners

Melgaz- A.

Pogorzelczyk, A.

Barłożek

partnership)

01.04.2009 for payment IX GNc 243/09 2,733,934.79 PLN Regional Court in Poznań, 1st

Civil Division

43

The court office has filed a petition to pay in execution proceedings out of a bill of exchange against the company and partners. The repayment order against

the debtors' is legally binding, as the company has declared bankruptcy. The claim reported in the bankruptcy proceedings has been fully recognized.

Enforcement proceedings have been undertaken at the creditor's request against the partners. The Bailiff has informed the creditor's attorney that the

proceedings are ineffectual. By ruling of 30.12.2009 the proceedings were closed. On 16 December, the creditor filed an application to disclose the debtors'

assets. The proceedings for disclosure of assets against the debtor A. Barłożek is suspended. The debtor has appealed to the Interior Ministry to reveal the

current address from the personal data base; there are no details of the present place of abode of the debtor. The proceedings for disclosure of assets against

the debtor A. Pogorzelczyk - the court requested AWSA to give a valid address of the debtor under pain of returning the request, but unfortunately it was

impossible to determine the address. However, according to information from Mr. Mrowiński, Amica has received its due amount (see item 1 composition

and bankruptcy proceedings).

4. Amica vs Korporacja

Budowlana Kopahaus

S.A.

18.06.2009 for payment IX GC 444/09 1,512,800.00 PLN Regional Court in Poznań, 9th

Commercial Division

AWSA purchased the receivables from the Claimant - KKS Lech Poznan SA on 28.12.2010 file ref IX GC 444/09 - the sentence is not yet final, on the basis of the sentence, registration of 3 compulsory capped rate mortgages were obtained for the property belonging to Kopahaus. Formally, KKS Lech Poznan SA is a party to the proceedings (Article 192 paragraph 3 Code of Civil Procedure) After the final completion of proceedings under the Article 788 § 1 Code of Civil Procedure, declaration of enforceability could be issued to AWSA. At the date of 01.08.2011 the verdict is not yet final.


Budowlana Kopahaus

S.A.

10.05.2009 for payment IX GC 572/09 1,118,914.00 PLN Regional Court in Poznań, 9th

Commercial Division

AWSA purchased the receivables from the Claimant - KKS Lech Poznan SA on 28.12.2010 file ref IX GC 572/09 - the sentence is not yet final, on the basis of the sentence, registration of 7 compulsory capped rate mortgages were obtained for the property belonging to Kopahaus. Formally, KKS Lech Poznan SA is a party to the proceedings (Article 192 paragraph 3 Code of Civil Procedure) After the final completion of proceedings under the Article 788 § 1 Code of Civil Procedure, declaration of enforceability could be issued to AWSA. At the date of 01.08.2011 the verdict is not yet final.


Budowlana Kopahaus

S.A.

29.07.2009 for payment IX GC 560/09 225,000.00 PLN Regional Court in Poznań, 9th

Commercial Division

Court decision is final, bailiffs enforcement proceedings are under way, in the course of the enforcement proceedings movables, bank accounts and debtor liabilities were seized, the debtor has committed to regular debt repayments - Until 29.06.2011 regular monthly amount of approximately 17,000.00 PLN was paid directly to the bailiff, however no payment was made for July 2011. The bailiff has seized the debtor's property in Pełczyce - proceedings in progress

44

7. Amica vs Renchem Sp.

z o.o. with the

participation

Korporacja

Budowlana Kopahaus

S.A.

29.01.2011 for priority

registration of

compulsory capped

rate mortgage in

KW

SZ1C/0004103/7

KW

SZ1C/0004103/7

District Court in Szczecin,

second Department of Civil

Appeals

AWSA was entered on the first place in the fourth chapter of land and mortgage register. A response to the appeal was files The higher court upheld the Reichem claimant's appeal and revoked registration of a mortgage. The court decided that an entry was made incorrectly due to errors made by the District Court. The guidelines issued for the District Court committed it to deliver the decision of registration of mortgage - as soon as the decision is delivered to the Law Office, appeal of the entry will be filed

8. Amica vs I. Kałamaga,

Z. Kałamaga

The case of an

offence under

Article 284 § 1 of

the Penal Code in

conjunction with

Article 300 § 2 of

the Penal Code.

II K 73/09 The District Court in Gorzow

Wielkopolski, second Criminal

Division

I. Kałamaga and Z. Kałamaga were convicted by a lower court. The lower court justified its decision. Law Office appealed against that decision as to unreasonably moderate punishment. The defendants also appealed, contesting guilt. Date of the appeal hearing - 19.05.2011 By the decision of the Court of Appeals in Szczecin the conviction was revoked and transferred for re-examination, Law Office applied to prepare a justification for that decision.

9. Amica vs Robert i Małgorzata Kornosz 4.04.2011

for releasing the property from mortgage PO1D/00047150/9 (formerly KW PO1D/00026072/5) Regional Court in Poznań, 15th Department of Civil Appeals XV

The Kornosz bought from Kopahaus part of the property in Środa Wielkopolska At the time of the transaction there was a reservation in the land register regarding filing an application by KKS Lech Poznan SA for registration of a mortgage. From the Land Register No. PO1D/00026072/5 the property was separated, which was along with the mortgage was transferred to the benefit of Amica Wronki SA The Kornosz appealed, requesting release of the property from mortgage. On 6.05.2011 the Law Office submitted a response to the appeal, seeking to dismiss the appeal. The case is pending in the higher court, hearing in this case is not yet scheduled. On 6.05.2011 The Kornosz filed another appeal in this case, based on the same grounds as the first appeal. The Law Office submitted a response to this appeal. The higher court did not issue a decision in both cases.

10. Amica vs J&R Plastic sp. z o.o. for the payment of 119,475.59 PLN

The District Court in Poznań, 9th Commercial Department IX GNc 650/11

45

lawsuit was filed on 8 July 2011, an order to pay has not been issued by the date of the statement

11. Amica vs. Paweł Przewoźny KAM for the payment of 59,975.11 PLN

District Court in Poznań - Stare Miasto in Poznań, 9th Commercial Division

lawsuit was filed on 28 July 2011, an order to pay has not been issued by the date of the statement

Composition and bankruptcy proceedings

1. Melgaz - A.

Pogorzelczyk, A.

Barłożek General

Partnership

19.06.2009 for payment XII GUp 92/09 2,779,122.12 District Court in Szczecin 12th

Commercial Division

18 May 2009 bankruptcy of the company was announced. On 19 June, the creditor claimed its receivables. Bankruptcy proceedings are under way. There is

still no list of creditors. Amica Wronki S.A.'s liability was included in full (2,779,122.12 PLN) on the list of liabilities in category 4. In a ruling of 21 December

2009 the Judge Commissioner approved the list of creditors submitted by the receiver on 03 November 2009. Based on information obtained from Mr. S.

Mrowiński dated 25.01.2011 it was apparent that the AWSA received compensation from the company Coface branch in Poland for not recovering

receivables from the debtor.

2. Amica Wronki vs

„Domar –Bydgoszcz”

S.A. in liquidation

bankruptcy

29.07.2009 for payment V GUp 20/09, V GU

98/09

1,254,471.69 PLN -

Main duty,

55,173.83 PLN -

interest

Judge Commissioner Artur Fornal

, District Court in Bydgoszcz,

D15th Commercial Department,

Gisela Eckert-Kurczewska,

trustee in bankruptcy

The claim was reported to the bankruptcy assets. The claim follows from invoices and corrective invoices, issued by a creditor to the bankrupt entity for sale and supply of home appliances. A debt is secured by a promissory note issued by "Domar-Bydgoszcz" in the amount of 1,292,288.79 PLN.

3. Lemar sp. z o.o. in bankruptcy

30.06.2011 separation from the bankruptcy property

IX GUp 11/09 102,901.67 PLN District Court for Warszawa

Praga – Północ

liquidation in Warsaw claims for payment

The application submitted on 30 June 2011 The trustee in bankruptcy received a copy of the application, but the court case has not examined the case yet

46

Proceedings against Amica Wronki S.A.

1.

Mariusz Markiewicz vs

Amica Wronki S.A.

recognition of

termination of an

employment

contract as

ineffectual

KM 631/09 3,120 PLN

District Court in Szamotuły,

Labour Division, Court Bailiff

for the District Court in

Szamotuły Witold Stachura

On October 6th 2008 the Court dismissed the action. The Creditor is implementing recovery proceedings for legal costs of 593 PLN. Enforcement

unsuccessful.

2. Locum S.A. vs Amica

Wronki S.A. 28.12.2009 for payment IX GC 700/09/16 109,063 PLN

Regional Court in Poznań, 9th

Commercial Division

On 28.12.2009 Amica Wronki S.A. received a petition to pay Amica Wronki S.A.'s attorney submitted a response to the action. The court set the date for the

next hearing as 11.03.2010. At this hearing the Court questioned the witness for the plaintiff's side. The court set the date for the next hearing as 28. 06.

2010. The sentence was issued regarding the case Locum SA vs Amica Wronki SA for payment. On 7 July 2010 the sentence was read, by which the Court

ordered for Locum an amount together with interest and part of the costs. Attorney has requested a justification for judgement (an appeal is likely) Law

Office appealed against the decision of the lower court. The appeal was dismissed. After analysing the decision of the higher court, the firm issued an opinion

that cassation appeal was unfounded due to lack of reasons for consideration by the Supreme Court.

3. Justyna Smolarkiewicz

vs Amica Wronki S.A. 16.04.2009

for damages,

compensation and

pension

VI P 30/09 119,600 PLN Regional Court in Poznań, 4th

Labour Division

The case concerns a former employee of Amica Wronki S.A. seeking damages for an accident at work. The lower court ordered Amica Wronki SA to pay 2,000

PLN Mrs J. Smolarkiewicz. Law Office appealed the decision on costs in the case. The decision is final, and the appeal against the decision on costs has not yet

been examined by the court.

47

Preliminary proceedings


GERO Sp. z o.o. for payment 1,487,623.73 PLN

Regional Court in Poznań, 1st

Civil Division

On 28 May 2010 an order was sent to redeem the bill. The debtor does not redeem the bill. Action was prepared. By the date of this statement the Law Office

has not received order to bring suit in this case nor information whether the company has repaid its liabilities in whole or in part.

The company reports that in March this year it terminated early contract for goods logistics with Wincanton Polska Sp. z o.o. In the opinion of the Management Board the reason for this situation was unreliable provision of services by the operator, which resulted shortages and damage of significant value to goods owned by Amica. At the date of this report, the company charged the operator with shortages and damages totalling 3,878,000 PLN. Some of the receivables (2,178,000 PLN) were set off by Amica Wronki liabilities owed to Wincanton Poland. In June this year Wincanton Polska Sp. z o.o. filed a lawsuit for the payment of remuneration in the amount of 1,394,000 PLN in respect of logistics services. In July this year, Amica Wronki submitted a response to the lawsuit, pointing to the fact of not contesting the Wincanton's claim, but on the ground that the claim was deducted set off from the Amica's liabilities due to Wincanton for damage of Amica's goods. On 4th August 4 Wincanton Poland, referring to the response Amica Wronki, reiterated its claim in its entirety. As at the date of this report there is no further information on the matter, however, the Management Board of Amica believes that the dispute would be settled in favour of the Company and the recovery of the amounts resulting from debit notes issued.

CONDENSED FINANCIAL STATEMENTS OF THE ISSUER

AMICA WRONKI S.A.

49

BALANCE thousands PLN



as at 31.12.2010

ASSETS

I. Fixed assets 331,695 319,271 346,976

1. Intangible assets, including: 10,236 9,447 9,810

- goodwill 0 0

2. Goodwill of subsidiaries

3. Property, plant and equipment 128,948 110,893 117,657

4. Investments 19,640 20,344 19,992

4.1 Investment property 19,640 20,344 19,992

4.2 Others

5. Financial assets 157,797 159,967 187,800

5.1 Financial assets available for sale 147,933 147,875 173,733

a) in subsidiaries and affiliates 147,933 147,875 173,733

b) in other entities

5.2 Long-term loans and receivables 9,723 11,951 9,738

- for subsidiaries and affiliates 9,513 11,951 9,494

- for subsidiaries and affiliates 210 244

5.3 Other long-term financial assets 141 141 4,329

6. Long-term deferred charges and accruals 15,074 18,620 11,717

6.1 Assets from deferred taxes 15,074 18,620 11,717

6.2 Other deferred charges and accruals 0 0

II Current assets 459,966 425,004 456,191

1. Inventory 169,723 124,404 132,616

2. Short-term receivables 272,882 265,105 301,157

2.1 From subsidiaries and affiliates 129,101 118,299 127,527

2.2 From other entities 143,781 146,806 173,630

3. Short-term investments 11,462 28,397 18,315

3.1 Short-term financial assets 11,462 28,397 18,315

a) in subsidiaries and affiliates 1,207 6,079 5,392

b) in other entities 913 83 1,592

c) cash and other cash assets 9,342 22,235 11,331

3.2 Other short-term investments

4. Short-term deferred charges and accruals 5,899 7,098 4,103

III. Assets classified as items for sale 4,174 4,303

Total assets 791,661 748,449 807,470

50

BALANCE

thousands PLN

situation as of

30.06.2011


as at 31.12.2010

LIABILITIES

I. Equity capital 317,909 304,531 335,709

1. Equity capital allocated to shareholders 317,909 304,531 335,709

1.1 Share capital 15,551 17,475 15,551

1.2 Called up share capital (negative value)

1.3 Own shares (negative value) 0 -30,406 0

1.4 Supplementary capital 304,317 339,959 311,527

1.5 Revaluation reserve capital -8,175 -23,611 -7,462

1.6 Other reserve capital

1.8 Profit (loss) of previous years 0 - 1 299 -1,299

1.9 Net profit (loss) 6,216 2,413 17,392

1.10 Write-offs on net profit during the financial year (negative value)

II Liabilities and reserves 473,752 443,918 470,243

1. Reserves for liabilities 50,361 51,015 34,521

1.1 Reserves for deferred income tax 6,614 5,691 6,611

1.2 Retirement benefits reserves 493 533 493

a) long-term 493 533 493

b) short-term

1.3 Other reserves 43,254 44,791 27,417

a) long-term 2,396 3,921 3,924

b) short-term 40,858 40,870 23,493

2. Long term liabilities 41,458 44,521 41,989

2.1 To subsidiaries and affiliates 0 1,944


3. Short term liabilities 377,479 330,652 389,038

3.1 To subsidiaries and affiliates 28,734 44,995 70,906


4. Accruals and deferred income 4,454 17,730 4,695

4.1 long-term 3,597 4,213 3,838

4.2 short-term 857 13,517 857

III. Liabilities associated with assets for sale 0 1,518

Total liabilities 791,661 748,449 807,470

Book value 317,909 334,937 335,709

Number of shares 7,775,273 8,737,500 7,775,273

Number of shares taking into account own shares 7,775,273 7,775,273 7,775,273

Book value per share (PLN) 40.89 43.08 38.42

51

STATEMENT OF COMPREHENSIVE INCOME

thousands PLN


I. Net revenue from sales of products, goods and materials, including: 493,552 489,671 1,161,755

- from subsidiaries and affiliates 190,331 176,185 418,077

1. Net revenue from sale of products 312,743 346,679 760,588

2. Net revenue from sales of products, goods and materials

180,809 142,992 401,167

II. Cost of products, goods and materials sold, including: 385,420 386,571 906,639

- to subsidiaries and affiliates 152,909 138,229 326,196

1. Cost of producing goods sold 234,574 267,216 565,327

2. Cost of goods and materials sold 150,846 119,355 341,312

III. Gross profit (loss) on sales 108,132 103,100 255,116

IV. Cost of sales 35,274 35,369 76,176

V. General administrative expenses 59,235 59,322 137,578

VI. Profit (loss) on sales 13,623 8,409 41,362

VII. Other operating revenue 5,079 11,138 20,781

1. Revenue from sale of non-financial fixed assets 4,957 5,017

2. Subsidies

3. Revaluation of non-financial fixed assets 1,210

3. Other operating revenue 5,079 4,971 15,764

VIII. Other operating costs 4,751 12,743 22,280

1. Loss on sale of non-financial fixed assets 35

2. Revaluation of non-financial fixed assets 568 2,366

3. Other operating costs 4,148 12,743 19,914

IX. Profit (loss) on operating activities 13,951 6,804 39,863

X. Financial revenue 6,435 3,202 13,493

1. Share dividends, including: 2,690 402 2,398

- from subsidiaries and affiliates 2,690 402 2,398

2. Interest, including: 1,573 885 1,522


3. Profit on sale of investments 3


5. Others 2,169 1,915 9,573

52

STATEMENT OF COMPREHENSIVE INCOME CONTINUED

thousands PLN


XI. Financial costs 12,552 11,630 29,432

1. Interest, including: 7,010 9,166 15,301

- for subsidiaries and affiliates 240 221 507

2. Loss on sale of investments 3,368


4. Others 5,542 2,464 10,763

XII.

Profit (loss) from sales of all or part of shares in subsidiaries

XIII. Profit (loss) before tax 7,834 -1,624 23,924

XIV. Income tax 1,618 -4,037 6,532

1. current 4,782 11,927 18,412

2. deferred -3,164 -15,964 -11,880

XIV. Other obligatory decrease of gross profit (increased loss)

XV. Net profit in the financial year 6,216 2,413 17,392

including:

allocated to company shareholders 6,216 2,413 17,392

allocated to minority shareholders 0 0 0

XVI. Total other income -690 2,365 18,415

1. Cash flow hedging instruments -880 2,919 22,857

2. Income tax from hedging instruments 167 -554 -4,343

3. Resolution of reserves for re-evaluated fixed assets 23 0 -99

XVII. Total revenue for the period 5,526 4,778 35,807

Net profit (loss) 6,216 2,413 17,392

Weighted average of number of ordinary shares (number of shares)

7,775,273 8,737,500 7,775,273

Number of shares issued 7,775,273 8,737,500 7,775,273

Number of own shares 0 962,227 0

Profit (loss) per ordinary share (PLN) 0.80 0.31 2.24

STATEMENT OF CHANGES IN EQUITY Stated capital Supplementary capital

Non-distributed

result

Assets /own shares/

available for sale


instruments



Balance as of 01.01.2010 17,475 331,191 9,119 -25,059 -28,131 2,155 306,750 Adjustment of fundamental errors -1,299 -1,299 Balance at 01.01.2010 after adjustment of fundamental error 17,475 331,191 7,820 -25,059 -28,131 2,155 305,451 Changes in equity capital in the 1st half of 2010, including 8,768 -6,706 -5,347 2,365 -920 Buy-back to redeem own shares -5,347 -5,347 Re-booking of financial result to equity capital 8,719 -8,719 0 Total income for 1st half of 2010 2,413 2,365 4,778 Re-booking of financial result to Company Social Provision Fund -400 -400 Other changes 49 49 Transactions with a minority shareholders 0 Balance as at 30.06.2010 17,475 339,959 1,114 -30,406 -25,766 2,155 304,531

Balance as of 01.01.2010 17,475 331,191 9,119 -25,059 -28,131 2,155 306,750

Adjustment of fundamental errors -1,299 -1,299 Balance at 01.01.2010 after adjustment of fundamental error 17,475 331,191 7,820 -25,059 -28,131 2,155 305,451

Changes in equity capital in 2010, including -1,924 -19,664 8,273 25,059 18,514 0 30,258 Buy-back to redeem own shares -5,347 0 -5,347 Share redemption -1,924 -28,482 30,406 0 0 Re-booking of financial result to equity capital 8,719 -8,719 0 0 Re-booking of financial result to Company Social Provision Fund -400 -400 Total revenue for four quarters of 2010 17,392 18,514 0 35,906 Settlement of subsidiary leaving the group 0 0 Other changes 99 0 99 Balance as of 31.12.2010 15,551 311,527 16,093 0 -9,617 2,155 335,709

54

STATEMENT OF CHANGES IN EQUITY Stated capital Supplementary capital

Non-distributed

result

Assets /own shares/

available for sale


instruments



Balance as of 01.01.2011 15,551 311,527 16,093 0 -9,617 2,155 335,709

Adjustment of fundamental errors 0 0 0 0 0 0 Balance at 01.01.2011 after adjustment of fundamental error 15,551 311,527 16,093 0 -9,617 2,155 335,709

Changes in equity capital in 2011, including 0 -7,210 -9,877 0 -713 0 -17,800

Buy-back to redeem own shares 0 0

Share redemption 0 0

Re-booking of financial result to equity capital -1,299 1,299 0 0

Re-booking of financial result to Company Social Provision Fund 0

Dividends -5,934 -17,392 -23,326

Total income for 1st half of 2011 23 6,216 -713 0 5,526

Settlement of subsidiary leaving the group 0 0

Other changes 0 0

Transactions with a minority shareholders 0 0

Balance as at 30.06.2011 15,551 304,317 6,216 0 -10,330 2,155 317,909

CASH FLOW ACCOUNT

thousands PLN


30.06.2011


30.06.2010


31.12.2010

A. Cash flows from operating activities I Net profit 6,216 2,412 17,392

1 Income tax 1,618 -4,037 6,532

II. Profit before tax 7,834 -1,625 23,924

III. Total adjustments -56,666 26,539 -29,878

1 Minority profit (loss)

2 Depreciation 9,156 13,649 22,329 3 Currency translation gains (losses) 3,839 567 3,631

4 Interest and profit sharing (dividend) 4,381 8,739 11,289

5 Profit (loss) on investment activities 44 -4,957 -1,660

6 Change in provisions 15,837 22,656 5,242

7 Change in inventory -37,716 7,794 949

8 Change in receivables 1,674 22,429 -37,983

9 Change in short-term liabilities excluding credits and loans -45,905 -42,152 -24,641

10 Change in prepayments and accruals -1,806 -2,955 29

11 Cash flows related to hedging -6,710 -9,946 -14,602

12 Other adjustments 2,577 12,799 8,721

13 Income tax paid -2,037 -2,084 -3,182

IV. Net cash flows from operating activities (I+/-II) - indirect method -48,832 24,914 -5,954

B. Cash flows from investment activities

I. Inflows 14,878 178,737 214,652

1.

Disposal of intangible and property, plant and equipment 65 176,377 204,638

2. Disposal of investments in real property and in intangible assets

3. From financial assets, including: 886 959 1,259

a) in subsidiaries and affiliates 726 591 688


- dividend and profit sharing 402 402

- repayment of long-term loans

- interest 726 189 286




- dividend and profit sharing

- repayment of long-term loans

- interest 160 368 571


4. Other inflows from investment activities 13,927 1,401 8,755

56

CASH FLOW ACCOUNT CONTINUED

thousands PLN


30.06.2011


30.06.2010


31.12.2010

II. Outflows -17,803 -5,018 -26,845

1. Acquisition of intangible and property, plant and equipment -12,866 -5,011 -16,627

2. Investments in real property and in intangible assets

3. For financial assets, including: -78 0 -4,397

a) in subsidiaries and affiliates -78 0 -4,397

- acquisition of financial assets -78 0 -4,397



- acquisition of financial assets


4. Dividends and other profit sharing paid out to minority shareholders

5. Other outflows from investment activities -4,859 -7 -5,821

III. Net cash flows from investment activities (I-II) -2,925 173,719 187,807

C. Cash flows from financial activities

I. Inflows 185,585 78,926 137,476

1. Net inflows from issuance of shares and other capital instruments and from capital contributions

2. Credits and loans 59,262 105 27,074

3. Issuance of debt securities 113,450 78,821 110,402

4. Other inflows from financial activities 12,873

II. Outflows -135,765 -280,700 -333,272

1. Acquisition of own shares

2. Dividends and other payments to shareholders

3. Profit distribution liabilities other than profit distribution payments to shareholders

4. Repayment of credits and loans -4,589 -156,538 -157,989

5. Redemption of debt securities -82,680 -111,824 -154,446

6. From other financial liabilities -12,051

7. Payment of liabilities arising from financial leases -2,750 -3,009 -5,761

8. Interest -6,757 -9,329 -15,076

9. Other outflows from financial activities -26,938

III. Net cash flows from financial activities (I-II) 49,820 -201,774 -195,796

D. Total net cash flows (A.III+/-B.III+/-C.III) -1,937 -3,141 -13,943

E. Balance sheet change in cash, including: -1,989 -3,098 -14,003

change in cash due to currency translation differences 52 -42 60

change in cash due to consolidation

F. Opening balance of cash 11,378 25,321 25,320

G. Closing balance of cash, including 9,441 22,180 11,377

- of limited disposability 7,836 9,031 6,541

57

Approval for publication

This Extended Consolidated Quarterly Financial Statements prepared for the period from 1 January 2011 to 30 June 2011 (with comparative information) has been approved for publication by the Company's Management Board on 24 August 2011.

Signatures of all Members of the Board

Date Full name Position Signed

24.08.2011 Mr Jacek Rutkowski President of the Management Board

24.08.2011 Mr Wojciech Antkowiak

Vice President of the Management Board, Trade and Marketing

24.08.2011 Mr Wojciech Kocikowski

Vice President of Finance

24.08.2011 Mr Marcin Bilik Vice President of the Management Board responsible for Operational Affairs

24.08.2011 Mr Tomasz Dudek Vice President of the Management Board, Purchasing and Logistics

Signature of the person responsible for the drawing up of the financial statement mentioned.

Date Full name Position Signed

24.08.2011 Ms Alina Jankowska-Brzóska

Chief Accountant / Commercial Proxy

58

Consolidated statements of Amica Wronki SA for the 1st half of 2011

Interim financial statement complying with the requirements of IAS34

"Interim Financial Reporting"

I. GENERAL INFORMATION

Amica Wronki S.A. is a joint stock company registered in Poland by the District Court in Poznań, 11th Commercial Division of The National Court Register on 7 June 2001 (National Court Register number KRS 17514). The company's registered office is in Wronki at ul. Mickiewicza 52. The Company's core business is:

1) manufacture of other household goods not classified elsewhere (PKD 29.7); 2) research and technical analysis (PKD 74.30.Z); 3) wholesale of personal and home use articles (PKD 51.4); 4) retail sale of electrical household appliances and radio and TV equipment (PKD

52.45.Z); 5) retail sale other than a chain of shops (PKD 52.6); 6) repair of personal and home use articles (PKD 52.7); 7) other land transport (PKD 60.2); 8) loading and storage of goods (PKD 63.1); 9) legal and accounting advice; consultancy; holding management (PKD 74.1); 10) hotels (PKD 55.1); 11) heat production and distribution (steam and hot water) (PKD 40.3).

Composition of the Company's Management Board as of 30/06/2011 was as follows:

Mr Jacek Rutkowski - President of the Management Board Mr Wojciech Antkowiak - Vice President of the Management Board responsible for

Trade and Marketing Mr Wojciech Kocikowsk - Vice President of the Management Board responsible for

Finance Mr Marcin Bilik - Vice President of the Management Board responsible for

Operational Affairs Mr Tomasz Dudek - Vice President of the Management Board responsible for

Purchasing and Logistics

Composition of the Supervisory Board as of balance day 30/06/2011: Mr Tomasz Rynarzewski - Chairman of the Supervisory Board Mr Piotr Sawala - Vice-Chairman of the Supervisory Board Mr Wojciech Kochanek - Member of the Supervisory Board Ms Bogna Sikorska - Independent Member of the Supervisory Board Mr Grzegorz Golec - Independent Member of the Supervisory Board

Amica Wronki S.A. is the parent company of the following companies: Amica International GmbH, Gram A/S, Sidegrove Ltd, Amica Commerce sro, Hansa OOO, Amica Far East Ltd, Inteco Business Solution Sp. z o.o, Hotel Olympic Sp. z o.o, Ares Sp. z o.o, AGD Media Sp. z o.o, Nova Panorama Sp. z o.o, Nove Centrum Sp. z o.o., Amica Marketing Sp z o.o., which together form the Amica Capital Group. The parent company of Amica Capital Group is Holding Wronki S.A.

60

II. NOTES FROM THE MANAGEMENT BOARD on the results of the 1st half of 2011.

- unless indicated otherwise, all figures are given in thousands of Polish Zlotys - this report meets the requirements of International Financial Reporting Standards

(IFRS). - the contents and the date of publication of this report comply with Polish laws and

regulations

The most important information relating to the Group's consolidated results (compared to the first six months of 2010):

Increase in total sales by 30.7m PLN (+5%)

Hansa sales growth in the eastern market by 76%

The increase in gross profit on sales by 11.4m PLN

The increase in EBIT by 8.2m PLN and a higher operating profit by 1.3 percentage points

Increase of gross profit by 2.5m PLN

Increase of EBITDA by 4.2m PLN

The increase in interest on debt of 90m PLN

1. Introduction In the first six months of 2011 the Group generated an operating profit of 2.6m PLN, an improvement of 8.2m PLN, compared to 2010. The Group's gross profit margin on sales in 2011 increased by 0.7 percentage points, of which the gross profit margin of Amica Wronki increased by 0.9%. Improved profitability was due to favourable sales structure (greater share of heating equipment), higher prices and better geographical structure (the higher sales to eastern markets.) It is worth noting that this occurred in a context of increasing prices of materials and components. It should also be noted that the second quarter of 2011 was the first quarter, where washing machines and refrigerators were not purchased from Amica's former factories.

2. Selected financial data of the Group first six

months of 2011

first six months of 2010

Change in thousands PLN

Dynamics %

Net revenue from sales of products, goods materials and services (thousands PLN)

614 416 583 766 30 650 105%

Gross profit on sales (thousands PLN) 148 762 137 323 11 439 108% EBITDA (thousands PLN) 21 097 16 941 4 156 125% Operating profit (EBIT) (thousands PLN) 10 916 2 700 8 216 404% Profit before tax (thousands PLN) 720 -1 752 2 472 Net profit (thousands PLN) -30 1 433 -1 463 -2%

Long-term liabilities (thousands PLN) 62 822 68 035 -5 213 92% Short-term liabilities (thousands PLN) 442 373 392 612 49 761 113% Equity capital allocated to shareholders of the Parent Company (thousands PLN) 281 529 278 985 2 544 101% Stated capital (thousands PLN) 15 551 17 475 -1 924 89% Number of shares (thousands) 7 775 273 8 737 500 -962 227 89% Profit per ordinary share (PLN) 0,00 0,16 -0,17 -2%

In the first six months of 2011 consolidated sales revenue increased by nearly 30.7 million PLN compared to 2010. The increase in revenue from foreign sales of products and goods came mainly thanks to the higher sales to the east, mainly in Russia and Ukraine. Russian company (Hansa) increased its sales (in RUB) by 76% compared to last year. At the same time sales in Poland fell by about 3%. Gross profit on sales was 148.8m PLN, and was higher by 11.4m PLN than last year. Profit increase was due to revenue and profitability growth (of 0.7 pp). Improved profitability is primarily the effect of (1) increases in the prices of goods and commodities in some markets, (2) sales growth in eastern markets, which is characterized by relatively higher profitability, and (3) increase in the participation of heating equipment in overall sales. In the first half year, sales on the Russian market were characterized by high growth, which is noticeable since the mid-2010. Sales growth in this region is on the one hand a sign of economic recovery in Russia, on the other, the result of Hansa's growing market share. In the first half of 2011 share of Hansa brand in the free-standing heating equipment segment rose by 2 percentage points and amounted to 13%. For a more detailed description of the sales in individual markets see commentary on sales. It is worth noting that improvement in profitability was achieved during the time of increasing commodity prices, where the highest average increase was in steel prices (32%). Gradually different sourcing of laundry and refrigeration appliances should improve

62

profitability. Starting from the second quarter, Amica will replace goods sourced from the sold off factories with goods acquired from other sources, both in Europe and Asia. Operating profit increased by 8.2m PLN despite an increase in general and administrative expenses, which are due to higher spending on an advertising campaign on the Russian market.

Higher negative balance from the financial activities resulted mainly from currency exchange losses in Amica Wronki S.A. and Amica International, and the valuation of hedging transactions in Hansa. Lower interest from interest-bearing debt (-2.2m PLN) had a positive effect on net financial result. Gross profit in the first half of the year was higher by 2.5m PLN than in the corresponding period last year. 3. Household appliances market report – Poland Domestic sales in the 1st half of 2011 Home appliance market in Poland* In the first six months of 2011 sales of household appliances in Poland reached a value of over 1,850 million PLN and when compared with the same period of 2010 were higher by over 2%. The higher level of sales was recorded in most product groups. The ovens (+5.9%) and hobs (6.4%) attracted increased interest. The most important to date group on the domestic large appliances market - refrigerators and washing machines grew at a slightly lower rate (3.8% and 1.5% respectively). The only group where the interest was slightly lower than in the previous year were free-standing cookers (down 2.4%). * Data for the period from January to June concerning the market in large household appliances based on GfK surveys and our own estimates.

Amica* According to store retail sales data (GfK) Amica's market share increased in value by 0.5 pp, which means maintaining the leading position on the Polish market for large household appliances. The increase in market share is mainly in built-in appliances (ovens increased market share in value by 2.8 pp, dishwashers +1.7 pp, hobs +1 pp; hoods +3.4%), which are the group of the most significance in the first half of 2011. When it comes to free-standing cookers, clearly Amica is still the leader with nearly 50% market share. The first half of 2011 has been another period when Amica strengthened its position in washing machine segment (+0.6 pp) and maintained market share in the refrigeration appliances (-0.2 pp). * Data for the period from January to June concerning the market in large household appliances based on GfK surveys and our own estimates.

64

The group's foreign sales in the first six months of 2011 In the first half of 2011, the Group's foreign sales denominated in Euro increased by 12% compared to the same period last year.

Amica International operating on the German market had the largest share of foreign sales in the period. Turnover achieved in this market accounted for more than 37% of the Group's sales and was higher by over 4% when compared to the same period last year. The second largest sales market during the period analysed was Russia. Amica Wronki direct sales in this region, expressed in euro, declined by almost 29%, while sales through Hansa, expressed in the Russian Rubles, grew by nearly 76%. These changes led to the growth of the significance of the Russian market in the Group's foreign sales from 21% in the first half of 2010 to 28% in 2011. The share of the Scandinavian market, where the Group sells primarily under the Gram brand was more than 17% in the first half of 2011. In comparison with the same period of the previous year turnover in this region declined by 13%. Amica Commerce operating on the Czech and Slovak market, constituted less than 5% of the Group's export sales. Turnover achieved by this Company in the first six months of 2011 were lower by 5% year on year. In addition, Amica Wronki SA sells directly to foreign customers. Sales in this segment increased by almost 21% compared to the same period last year, accounting for over 12% of the Group's foreign sales. Direct sales is carried out mainly to the UK, Ukraine and Romania.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2010 2011

Pozostałe

Rosja

Skandynawia

Niemcy

Czechy i Słowacja

Other Russia Scandinavia Germany Czech Republic and Slovakia

4. Balance 30.06.2011 30.06.2010 Change in PLN Dynamics % I. Fixed assets 277 689 264 400 13 289 105% II. Current assets 509 035 471 058 37 977 108% 1. Inventory 228 603 161 988 66 615 141% 2. Short-term receivables 247 209 245 138 2 071 101% 3. Short-term investments 22 613 51 886 -29 273 44% 4. Short-term deferred charges and accruals 10 610 12 046 -1 436 88% III. Assets classified as items for sale 0 4 174 -174 0%

Total assets 786 724 739 632 47 092 106%

30.06.2011 30.06.2010 Change in PLN Dynamics %

I. Equity capital 281 529 278 985 2 544 101% II. Liabilities and reserves 505 195 460 647 44 548 110% 1. Reserves for liabilities 73 605 71 906 1 699 102% 2. Long term liabilities 41 458 44 521 -3 063 93% 3. Short term liabilities 384 582 325 218 59 364 118% 4. Accruals and deferred income 5 550 19 002 -13 452 29% III. Liabilities associated with assets for sale 0 0 0

Total liabilities 786 724 739 632 47 092 106%

As at 30.06.2011 the Group's total assets total grew by 47.1m PLN. Fixed assets increased by 9.1m PLN. The increase in this position consisted mainly of investment in property, plant and equipment of the cookers factory and IT in Amica Wronki. The higher value of current assets at the end of June 2011 by 38m PLN is the result of the increase in inventories by 66.6m PLN, as a result of changing business model in the washing machine and refrigeration segment and replacing own products with trade goods. Decline in value of short-term investments reflects lower level of cash held by the individual Group companies. The amount of all liabilities and provisions increased by a total of over 44m PLN, of which short-term loans increased by 92m PLN, while long-term loans were reduced by 1.6m PLN. Trade payables decreased by 24.7m PLN, while the public and legal settlements decreased by 28.2m PLN. Accrued expenses decreased by 13.7m PLN, in connection with the return of subsidies to factories sold. 5. Cash flow first six

months of 2011



Net cash flows from operating activities (thousands PLN) -46 714 33 015 -79 729 Net cash flows from investment activities (thousands PLN) -6 883 172 929 -179 812 Net cash flows from financial activities (thousands PLN) 48 292 -201 254 249 546 Total net cash flows (thousands PLN) -5 305 4 690 -9 995

In the first six months of 2011 the balance of flows from Amica Group's operating activities amounted to -47m PLN and was about 80m PLN lower than the corresponding period of the previous year

. Inventory whose balance was -45m PLN and increase in short-term liabilities (-54m PLN) had negative impact on cash flows from operating activities. Positive cash flows from financing activities amounted to 48.3m PLN and were the result of positive net borrowing / repayment of loans and bonds (+85m PLN). The value of the interest paid amounted to 7.3m PLN, and was lower than the previous year by 2.7m PLN. Total net cash balance for the first sic months of the year was negative and amounted to -5.3m PLN.

6. Key performance indicators The increase in gross profit margin on sales by 0.7 percentage points was mainly due to change in the structure of product sales and sales growth in Eastern markets.

Margins first six months of 2011


Change in pp

Gross profit on sales 24,2% 23,5% 0,7

Operating profit margin 1,8% 0,5% 1,3

EBiTDA margin 3,4% 2,9% 0,5

Gross profit margin 0,1% -0,3% 0,4

Net profit margin 0,0% 0,2% -0,3

KPIs first six months of 2011


Dynamics %

Current ratio 1,33 1,46 91,3%

Quick ratio 0,73 0,95 76,7%

Liability ratio 64,2% 62,3% 103,1%

Net working capital (thousands PLN) 70 879 82 620 85,8%

Current ratio was 9.7% lower than in the previous year, but clearly above 1.0 indicating a high level of liquidity. Quick ratio is significantly lower due to the significant increase in inventories in the balance sheet, which was funded by short-term interest bearing liabilities. The debt ratio increased to 64.2% due to the increase in short-term debt interest. Net working capital as at 30.06.2011 was positive and amounted to 66.7m PLN.

7. Commentary on financial statements of major Group companies Amica Wronki SA Selected financial data first six

months of 2011



Dynamics %

Net revenue from sales of products, goods materials and services (thousands PLN)

493 552 489 671 3 881 101%

Gross profit on sales (thousands PLN) 108 132 103 100 5 032 105% EBITDA (thousands PLN) 23 107 20 453 2 654 113% Operating profit (EBIT) (thousands PLN) 13 951 6 804 7 147 205% Profit before tax (thousands PLN) 7 834 ‐1 624 9 458 Net profit (thousands PLN) 6 216 2 413 3 803 258%

Long-term liabilities (thousands PLN) 54 558 58 879 -4 321 93% Short-term liabilities (thousands PLN) 419 194 383 740 35 454 109% Equity capital allocated to shareholders of the Parent Company (thousands PLN)

317 909 305 830 12 079 104%

Stated capital (thousands PLN) 15 551 17 475 -1 924 89% Number of shares (thousands) 7 775 273 7 775

273 0 100%

Profit per ordinary share (PLN) 0,80 0,31 0,49 258%

68

In the first six months of 2011 Amica Wronki SA achieved almost 494m PLN in revenue. It is higher by over 3.9m PLN than last year. In terms of sales structure trends, a decrease in sales volume in the domestic market by about 3% should be noted. This was due to the lower sales, mainly in refrigeration and dishwashers segment (see comment Home appliance market in Poland). The Company's export sales on other markets were characterized by a high growth rate (+11%). High sales n the eastern markets (especially Russia) is noteworthy. Company managed to achieve the gross profit on sales of 5.0m PLN higher than last year mainly due to improved profitability. The increase in profit margin is most contributed by (1) a lower value of hedging by 7.2m PLN, (2) increase in sales of cookers (by 40m PLN), (3) increases in the prices of some products, (4) increase in direct sales to international markets by 5% (5) sales to Russia increased by more than 52%. On the other hand, in the first half of the year there was a noticeable increase in prices of materials, mainly steel. Operating profit was 14m PLN (an increase of 7.1m PLN) despite an increase in cost of sales as a result of higher costs of logistics. Increased demand for warehouse space was the result of selling refrigerators and washing machines factory. An improved result on financial activities (by 2.3m PLN) is primarily the result of lower debt interest (2.2m PLN) and dividends received (2.6m PLN). Amica achieved a net profit 3.8m higher than 2010. In connection with the higher net profit and the redemption of some of the shares, earnings per share amounted to 0.8 PLN compared to 0.31 PLN a year earlier. Balance As at 30.06.2011 the Company's assets increased as compared to 30.06.2010 by 43.2m PLN to 791.7m PLN. Fixed assets had a higher value by 12.4m PLN, mainly due to investments in property, plant and equipment in the cookers factory and investment in IT development. Primarily two factors contributed to the higher current assets by 35m PLN at the end of the first six months of 2011. The first is the decline in the value of cash by 16.9m PLN. The second factor is the increase in inventory of more than 45m PLN. Increase in inventories was due to the substitution of washing machines and refrigerators manufactured in the factories sold with trade goods from other suppliers. The Company's equity value was higher by nearly 12m PLN compared to 30.06.2010 due to the accumulated profits of the last year and the redemption of part of the shares. Liabilities from interest were higher by 101,4m PLN, while liabilities from deliveries and services were lower by 33.4m PLN. In connection with the sale of its factories, the company was forced to return part of the grant received and therefore the carrying value of accrued liabilities and accruals (deferred income) is lower by 13.3m PLN. Gram A/S Profit and loss account Sales revenue in the first six months of 2011 amounted to 96.6 million DKK and was lower by 13.2% than in 2010. The drop in sales was primarily visible on the Danish market. The gross margin on sales compared to that achieved in 2010 decreased by 10.4%. However, the sales gross margin achieved was higher by 0.6 percentage points and reached 18.1%. The

69

company ended the first quarter with operating loss of DKK 5.3 million, but the amount of DKK 3 million was due to write-off for uncollectible accounts from one of the customers in Denmark. The net loss amounted to 5.6m DKK and was higher than in the first six months of 2010 by 3.5m DKK. Balance Total assets at 30.06.2011 amounted to 108.1 million DKK and were higher by 8.3 million DKK when compared to 30.06.2010. Fixed assets remained unchanged, while current assets increased by 8.5m DKK. The value of inventory increased by DKK 10.7m, mainly due to failure to implement sales plans, as well as due to changes in the Group's logistic model. Receivables fell by DKK 4m and cash increased by DKK 2.4m. Equity at the end of the half-year was DKK 2.9m lower than a year earlier and amounted to DKK 11.4m. Amica International GmbH /AI Profit and loss account Revenue of Amica International GmbH in the first half of 2011 was 33.1m EUR. In comparison with the 2010 revenues increased by 1.2 million EUR (+3.7%). Gross profit on sales amounted to 4.4 million euro, an amount higher by about 0.8 million euros compared to 2010. Increased profit (by 1.9 pp) should be stressed, which results from the strengthening of the euro against the dollar which caused the increase in profitability on goods imported from China. In addition, favourable sales structure contributed to improved profitability. The company ended the first six months with operating profit of 706,000 EUR, an increase of 722,000 EUR compared to last year. Net profit stood at 0.3 m EUR Balance

The value of total assets Amica International GmbH on 30 June 2011 amounted to 13.4 million EUR, which was a lower value by 4% (-0.7 million EUR) compared to the same period last year. On the assets side there was a slight decrease in short-term receivables from by 0.9m EUR (to 6,5m EUR). The level of inventory at the end of the second quarter of 2011 decreased by approximately 1.2m EUR due to a decrease in inventory of goods imported from China. As far as liabilities are concerned, there is a significant change in the amount current liabilities, which decreased by more than 0.5 million (to 6.0 million). Amica Commerce s.r.o. Profit and loss account After the first half of 2011 sales achieved by Amica Commerce was at the level of 110.5 million CZK, resulting in a drop in sales of nearly 5% over the first half of 2010. According to data from GfK_TEMAX there was an increase by only 0.2% in the Czech market compared to last year. As for the Slovak market, sales growth of 6.9% has been observed, but note that the scale of last year's decline in the market was substantially higher than in the Czech

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Republic. The Company achieved a gross sales result of 12.3m CZK (12.7m CZK in H1 2010) with profitability of 11.1%. Cost of sales remained at a similar level (4.3 million CZK). Compared to last year, Amica Commerce increased spending on marketing by 2 million CZK. Result on financial operations amounted to +5.5 million CZK (the effect of foreign exchange gains). Amica Commerce closed the first six months of 2011 with net profit of 0.3m CZK, while in the corresponding period of 2010 the loss amounted to 5.5m CZK. Balance On the asset side, as at 30.06.2011 year, there was an increase in inventory by 10 million CZK, which is due to preparation for the introduction of new design lines on the Czech and Slovak market, as well as higher sales plans in the second half of 2011. The increase in inventory is funded by the increase in trade payables by 16 million CZK. HANSA OOO Profit and loss account Sales of Hansa in the first six months of 2011 amounted to 955.2.5m RUB and increased over the first half of 2010 by 76%. Hansa's gross profit fell by 12.9 million RUB (including a 32.6 million decrease as the result of EUR / RUB hedging). Also, in March, the Company achieved the planned spending on TV advertising, whereby operating profit fell by 45.7m RUB compared to the corresponding period last year and amounted to -17.9m RUB. Hansa recorded 84.6m RUB in financial revenue (including 80.5m RUB in foreign exchange gains, and 4.2m RUB in valuation of the hedging) and 91.5m RUB of financial costs (of which 38.7m RUB relates to hedging, and 52.8m RUB of foreign exchange differences). Hedging transactions concluded hedged the planned currency position in the first half of the year. Net result for the first six months of 2011 amounted to -21m RUB and was less by 68m RUB compared to the first half of 2010. Balance The value of the Company's assets on 30.06.2011 amounted to 582.5m RUB and was higher than that recorded on 30.06.2010 by 203.3m RUB. Fixed assets increased by 5.8m RUB, while the current assets by 197.5m RUB, due to the increase in inventory by 106.2m RUB and receivables by 111.8m RUB. The increase in inventories was a result of the decision to ensure better availability of key product ranges for Russian clients in a warehouse in Russia and the preparation of the Company for sales in the third quarter. The Company's equity decreased by 77m RUB due to the loss recorded in the period from third quarter 2010 to second quarter 2011. The company covered the increase in current assets and a lower value of equity with the increase in the value of payables to Amica Wronki.

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Signatures of Members of the Board

Full name Position Signed

Mr Jacek Rutkowski

President of the Management Board

Mr Wojciech Antkowiak

Vice President of the Management Board responsible for Trade and Marketing

Mr Marcin Bilik Vice President of the Management Board responsible for Operational Affairs

Mr Wojciech Kocikowski

Vice President of the Management Board responsible for Finance

Mr Tomasz Dudek Vice President of the Management Board responsible for Purchasing and Logistics

grant thornton frąckowiak - amica · total assets 786,724 739,632 780,154 . 9 consolidated balance...

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