The Board of Directors of Zakład Budowy Maszyn “ZREMB-CHOJNICE” S.A. (Joint Stock Company) “Company”, “Issuer”, in connection with information acquired on May 19, 2020 on the estimated values of selected individual and consolidated financial data for the first quarter of 2020, hereby provides the estimated selected individual and consolidated financial data of ZBM “ZREMB-CHOJNICE” S.A. for the first quarter 2020 together with comparative data for the first quarter for the financial years 2018 and 2019.

For the purpose of calculating the average individual and consolidated results of the Company and calculating deviations in relation to the results achieved in the first quarter 2020, the Board of Directors of the Issuer has adopted the period 2018-2019.

The final values of financial data for the first quarter 2020 presented in this report will be published in the periodic report on May 25, 2020.

The comment of the Board of Directors to the estimated individual and consolidated financial results for the first quarter 2020. ZREMB Chojnice S.A.

Estimated individual selected financial data for the first quarter 2020.

During the first quarter 2020, the company generated revenues from sales of about PLN 6,687 thousand, which – compared to the average revenues from sales for the respective periods in 2018 and 2019 – is a decrease of 21.93%. The achieved level of revenues indicates that it was not possible to obtain as many orders as in the previous averaged periods. EBIT achieved in the first quarter 2020 i.e. a profit of PLN 363 thousand and EBITDA i.e. a profit of PLN 564 thousand, are practically twice as high as the average results for the relevant period in 2018 and 2019, with PLN 146 thousand (EBIT) and PLN 301 thousand (EBITDA). This is the result of profitability of orders completed in the first quarter 2020 and minimization of costs, because with a decrease in revenues, those indicators have been significantly improved. The estimated individual net result achieved in the first quarter 2020 is a profit of PLN 327 thousand, which compared to the average individual net loss in 2018 and 2019, which amounted to – PLN 98 thousand, is a considerable difference.

Estimated consolidated selected financial data for the first quarter 2020.

In the first quarter 2020, the company recorded consolidated sales revenues of PLN 6,678 thousand – which is the level achieved in 100% by ZBM ZREMB Chojnice S.A. only. Compared to the average consolidated sales revenues for the respective periods in 2018 and 2019, this represents a decrease of 21.93%. The achieved level of consolidated revenues indicates that it was not possible to obtain as many orders as in the previous averaged periods. The consolidated EBIT achieved in the first quarter 2020 i.e. a profit of PLN 363 thousand and EBITDA i.e. a profit of PLN 564 thousand, are practically twice as high as the average consolidated results for the relevant period in 2018 and 2019, when (EBIT) amounted to PLN 146 thousand and (EBITDA) PLN 301 thousand. This is the result of profitability of orders completed in the first quarter 2020 and minimization of costs, because with a decrease in revenues, those indicators have been significantly improved. The estimated consolidated net result achieved in the first quarter 2020 is a profit of PLN 327 thousand (the same value for consolidation), which – compared to the average consolidated net loss in the years 2018 and 2019, which amounted to – PLN 135 thousand PLN is a considerable difference.

Full version of the report is available in Polish.

SIGNATURES OF PERSONS ACTING ON BEHALF OF THE COMPANY
Date Name and Surname Position/Function Signature
2020-05-19 Krzysztof Kosiorek-Sobolewski Chairman of the Management Board
2020-05-19 Marcin Garus Deputy Chairman of the Management Board