Legal basis: The Article 17 item 1 of the MAR – confidential information.

The Board of Directors of Zakład Budowy Maszyn “ZREMB-CHOJNICE” S.A. (Joint Stock Company) (“Company”, “Issuer”) in connection with the information received today, i.e. on April 16, 2020, regarding the estimated selected individual and consolidated financial data for 2019, hereby provides the estimated selected individual and consolidated data of ZBM “ZREMB-CHOJNICE” S.A. for 2019 together with comparative data for the financial years 2017 and 2018 – as attached.

The Board of Directors of of the Issuer adopted the period 2017-2018 for the purpose of calculating the average individual and consolidated results of the Company and calculating deviations in relation to the results achieved in 2019

The final values of financial data for 2019 presented in this report will be published in the periodic report on April 23, 2020.

The comment of the Board of Directors to the estimated individual financial results of ZREMB Chojnice S.A.

Estimated individual selected financial data for 2019:


The Company recorded an increase of 20.70% in 2019, compared to averaged sales revenues for 2017 and 2018, which indicates that it was possible to acquire more orders and achieve a higher capacity utilization rate. This is also reflected in the gross profit achieved on sales in 2019 in the amount of PLN 6.892 thousand, which compared with the averaged gross profit on sales in 2017 and 2018 in the amount of PLN 5.133 thousand constitutes an increase by 34.78%. This is an evidence of effective cost reduction in the Company and more profitable contracts that the Board of Directors managed to conclude. This difference is even more pronounced in the case of EBIT and EBITDA, where PLN 1.483 thousand and PLN 2,233 thousand were recorded respectively in 2019 compared to the average result for the previous respective periods of 2017 and 2018, with EBIT amounting to PLN 962 thousand (increase by 54.19% in 2019), and EBITDA of PLN 1 554 thousand (increase by 43.64% in 2019). The estimated individual net result recorded in 2019 amounts to PLN 410 thousand, which – compared to the averaged net result of 2017 and 2018, when it amounted to PLN 1.602 thousand – is a significant improvement.


It is important to note that the provided estimated financial results for 2019 have been lowered as a result of an adjustment made by the Company showing initially in 2019 production in progress and finished products that were charged to the financial result of 2018. This is the level of approximately PLN 1.340 thousand, which negatively influenced the financial result for 2019, improving the financial results of 2018 as a result of adjustments by this amount. A more detailed description of the adjustments will be included in the comprehensive financial reports.

Estimated consolidated selected financial data for 2019:


In 2019, the Group recorded consolidated sales revenue of PLN 33,089 thousand (this amount was in 100% achieved by ZBM ZREMB Chojnice alone). Compared to the average consolidated sales revenues for 2017 and 2018, this is an increase by 20.80%, which indicates that it was possible to acquire more orders and achieve a higher capacity utilization rate. In 2019, the capital group generated consolidated gross profit on sales in the amount of PLN 6,891 thousand (an increase by 36.77%) compared to the averaged gross profit on sales in 2017 and 2018, which amounted to PLN 5,038 thousand.


The consolidated EBIT result achieved in 2019 in the amount of PLN 1,482 thousand was improved, compared to the average EBIT for 2017 and 2018, when a result of PLN 879 thousand was recorded (an increase by 68.81%). Consolidated EBITDA (profit for 2019 amounts to PLN 2,232 thousand) shows an increase by 51.66% compared to the averaged values for 2017 and 2018 when the result amounted to PLN 1.471 thousand. The Group’s net profit in 2019 amounts to PLN 316 thousand, compared to 2017 and 2018 (average – PLN 4.446 thousand).


It is important to note that the provided estimated consolidated financial results for 2019 have been lowered as a result of an adjustment made by the Company showing initially in 2019 production in progress and finished products that were charged to the financial result of 2018. This is the level of approximately PLN 1.340 thousand, which negatively influenced the financial result for 2019, improving the financial results of 2018 as a result of adjustments by this amount. A more detailed description of the adjustments will be included in the comprehensive financial reports.

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
2020-04-16 Krzysztof Kosiorek-Sobolewski Chairman of the Management Board
2020-04-16 Marcin Garus Deputy Chairman of the Management Board