Tatry Mountain Resorts A.S.

Quarterly Report • Apr 19, 2017

Amendment of the Half-year Report 2015/16 of Tatry mountain resorts, a.s. and its subsidiaries for the period from November 1, 2015 to April 30, 2016

The Half-year Report 2015/16 of Tatry mountain resorts, a.s. and its subsidiaries for the period from November 1, 2015 to April 30, 2016 has been amended as follows:

• On page 15 Consolidated cash flow statement has been amended (see attachment)
• On page 17 Condensed Interim Separate Financial Statements for the period from November 1, 2015 to April 30, 2016 have been added (see attachment).

Consolidated cash flow statement

In thousands of EUR	1.11.2015 – 30.4.2016	1.11.2014 – 30.4.2015
OPERATING ACTIVITIES
Profit	5,482	3,763
Adjustments relating to:
Gain on disposal of property, plant and equipment and intangible assets	-425	38
Depreciation and amortization	6,583	6,778
Foreign currency differences	-454	12
Reversal of value adjustments to receivables	-	-8
(Gain)/loss on financial instruments, net	158	-10
Interest (income)/expense, net	4,737	4,833
Change in provisions	-1	-
Income tax	25	-
Change in trade receivables, other receivables and other assets	-2,542	2,327
Change in inventories	1,335	-55
Change in trade payables and other liabilities	-3,461	-611
Cash flow from operating activities before tax	11,437	17,067
Income tax paid	27	-285
Cash flow from operating activities	11,464	16,782
INVESTMENT ACTIVITIES Acquisition of property, plant and equipment and intangible assets	-5,682	-1,151
Proceeds from disposal of property, plant and equipment and intangible
assets	425	-38
Procurement of financial investments	-	-6,727
Proceeds from disposal of financial investments	-	-
Cash flow from investment activities	-5,257	-7,916
FINANCIAL ACTIVITIES Proceeds from paid bills of exchange	-	-
Loans granted	-1,154	-2,225
Instalments of granted loans	5,358	7,223
Instalments of liabilities under financial leasing	-420	-412
Instalments of received loans and borrowings	-19,453	-4,682
New loans and borrowings	15,530	6,744
Repayment of the liability from decrease of the share capital	-	-
Issued bonds	-	-
Interest paid	-8,674	-8,807
Cash flow from financing activities	-8,813	-2,159
Net increase/(decrease) of cash and cash equivalents	-2,606	6,707
Cash and cash equivalents at the beginning of the year	8,219	3,903
Cash and cash equivalents at end of the year	5,613	10,610

The notes presented on page 16 form an integral part of the condensed interim consolidated financial statements.

Condensed Interim Separate Financial Statements For the period from November 1, 2015 to April 30, 2016

prepared in accordance with the International Financial Reporting Standards ("IFRS") in the wording adopted by the EU

Separate statement of profit and loss and other comprehensive income

In thousands of euros	1.11.2015 – 30.04.2016	1.11.2014 – 30.04.2015
Sales	45 592	38 730
Other operating revenue	338	218
Total revenue	45 930	38 948
Consumption of material and goods	-7 092	-6 142
Purchased services	-11 732	-9 519
Personnel expenses	-9 371	-7 900
Other operating expenses	-598	-429
Gain on sale of assets	425	-52
Gain on revaluation of investment property	-	-
Creation and reversal of value adjustments to receivables	-	8
Profit before interest, tax, depreciation and amortisation (EBITDA)*	17 562	14 914
Depreciation and amortisation	-5 984	-6 442
Goodwill impairment loss	-	-
Profit before interest and tax (EBIT)	11 578	8 472
Interest income	745	724
Interest expenses	-5 439	-5 488
Net profit/(loss) from financial instruments	-184	-5
Profit/(loss) before tax	6 700	3 703
Income tax	-9	-9
Profit/(loss)	6 691	3 694
Other components of the comprehensive income
Revaluation of available-for-sale securities to fair value	-	-
Total comprehensive income	6 691	3 694
Earnings per share (in EUR)	0,998	0,551
Number of shares	6 707 198	6 707 198

*EBITDA represents a profit from recurring activities of the Group before taxes, interest, amortisation and depreciation, adjusted for other income and expenses, which are listed under EBITDA.

Separate statement of financial position

In thousands of euros	30.4.2016	31.10.2015
Assets
Goodwill and intangible assets	7 291	7 395
Property, plant and equipment	254 395	257 817
Investment property	6 554	6 554
Loans provided	26 564	24 719
Other receivables	2 659	2 342
Investments in subsidiaries	14 641	14 641
Total non-current assets	312 104	313 468
Inventories	3 981	5 336
Trade receivables	3 302	1 972
Assets available for sale	938	938
Loans provided	2 854	6 677
Other receivables	21 305	21 509
Financial investments	225	385
Cash and cash equivalents	4 843	8 064
Other assets	1 938	1 953
Total current assets	39 386	46 834
Total assets	351 490	360 302
Equity
Share capital	46 950	46 950
Share premium	30 430	30 430
Profit/(loss) for the period	6 691	19
Retained earnings and other funds	23 891	23 877
Total equity	107 962	101 276
Liabilities
Loans and borrowings	28 340	26 771
Provisions	24	24
Other long-term liabilities	-	-
Bonds issued	178 560	178 520
Deferred tax liability	18 956	18 956
Total non-current liabilities	225 880	224 271
Loans and borrowings	4 549	14 938
Trade payables	5 879	5 805
Provisions	121	121
Bonds issued	2 722	6 022
Other short-term liabilities	4 377	7 869
Total current liabilities	17 648	34 755
Total liabilities	243 528	259 026
Total equity and liabilities	351 490	360 302

Separate statement of changes in equity

In thousands of euros	Share capital	Share premium	Legal reserve fund	Funds from revaluation	Retained earnings	Total
Balance as of 1 November 2015	46 950	30 430	4 448	145	19 303	101 276
Transfer of Retained earnings to Legal reserve fund			-		-	-
Profit for the period	-	-	-	-	6 691	6 691
Other components of the comprehensive income, after tax
- Items not subsequently reclassified to profit/(loss):
Revaluation of tangible assets upon transfer to investment property	-	-	-	-	-	-
- Items that may be subsequently reclassified to profit/(loss):
Revaluation of available-for-sale securities to fair value	-	-	-	-5	-	-5
Total comprehensive income for the period	-	-	-	-	6 691	6 686
Transactions with owners, recognised directly in equity
Contributions to the fund	-	-	1	-	-1	-
Total transactions during the year	-	-	-	-	-	-
Balance as of 30 April 2016	46 950	30 430	4 449	140	25 993	107 962

Separate statement of changes in equity (continued)

In thousands of euros	Share capital	Share premium	Legal reserve fund	Funds from revaluation	Retained earnings	Total
Balance as of 1 November 2014	46 950	30 430	4 448	140	19 284	101 252
Profit for the period	-	-	-	-	3 694	3 694
Other components of the comprehensive income, after tax - Items not subsequently reclassified to profit/(loss):
Revaluation of tangible assets upon transfer to investment property - Items that may be subsequently reclassified to profit/(loss):	-	-	-	-	-	-
Revaluation of available-for-sale securities to fair value	-	-	-	7	-	7
Total comprehensive income for the period	-	-	-	7	3 694	3 701
Transactions with owners, recognised directly in equity Contributions to the fund	-	-	-	-	-	-
Total transactions during the year	-	-	-	-	-	-
Balance as of 30 April 2015	46 950	30 430	4 448	147	22 978	104 953

Separate cash flow statement

In thousands of euros	1.11.2015 – 30.4.2016	1.11.2014 – 30.4.2015
OPERATING ACTIVITIES
Profit/(loss)	6 691	3 694
Adjustments related to:
Gain on disposal of property, plant and equipment and intangible assets	-425	52
Depreciation and amortisation	5 984	6 442
Foreign exchange differences	-	6
Reversal of value adjustments to receivables	-	-8
Net (gain)/loss on financial instruments (non-cash)	158	-10
Gain on revaluation of investment property	-	-
Net interest (income)/expenses	4 694	4 764
Change in provisions	-	-1
Income tax	-9	-10
Change in trade receivables, other receivables and	-1 444	2 434
other assets
Change in inventories	1 355	-199
Change in trade payables and other liabilities	-3 418	-615
Cash flow from operating activities before income tax	13 586	16 549
Income tax paid	27	-276
Cash flow from operating activities	13 613	16 273
INVESTMENT ACTIVITIES
Acquisition of property, plant and equipment and intangible assets	-2 432	-819
Proceeds from disposal of property, plant and equipment and intangible assets	425	-52
Cost of business combinations, net of cash acquired	-	-
Loans provided	-2 737	-2 425
Repayment of loans provided	5 429	7 223
Cost of acquisition of financial investments	-	-6 727
Proceeds from disposal of financial investments	-	-
Interest received	-	0
Cash flow from investment activities	685	-2 800
FINANCIAL ACTIVITIES
Repayment of liabilities from financial lease	-420	-522
Financial lease received	-	-
Repayment of received loans and borrowings	-23 930	-4 349
New loans and borrowings	15 530	6 744
Repayment of liability from reduction of share capital	-	-
Bonds issued	-	-
Interest paid	-8 699	-8 768
Dividends paid	-	-
Cash flow from financial activities	-17 519	-6 895
Net increase/(decrease) of cash and cash equivalents	-3 221	6 579
Cash and cash equivalents at the beginning of the year	8 064	3 757
Cash and cash equivalents at end of the year	4 843	10 336

Selected notes to the Condensed Interim Separate Financial Statements

1. Investments

During the observed period the Company started the implementation of an investment project in Tatralandia (mobile surfing wave) and continues in construction of the new cableway Krupová – Kosodrevina from the south side of Mt. Chopok and realization of Hotel Pošta. The Company continues to proceed with the investment plans as presented to the General Meeting held on Apríl 28, 2016.

2. Inventory

During the period the Company initiated the realization of a second stage of real estate investment project Chalets Otupné (Chalets Otupné 2) and continues in the realization of the project Hotel Pošta – apartments for sale. Both projects relate to real estate development designated for sale or operation. The value of the investment is recognized in the financial statements under Inventories.

3. Financial investments

On December 9, 2015 the Company sold its entire 19% share of securities in Melida, a.s. in the amount of EUR 154 ths. to CAREPAR, a.s. and at the same time purchased a 19% share in CAREPAR, a.s. The reason for this transaction was the longtime planned shareholder structure of the Melida, a.s. company and optimization of relationships among shareholders of Melida, a.s.

4. Subsequent events

On June 17, 2016 the Company paid out a coupon on the TMR I bonds in the amount of EUR 1,575,000.

.................................................................................................................................................................................... Bohuš Hlavatý Jozef Hodek Tomáš Kimlička Marián Vojtko Chairman Member Person responsible for Person responsible for of the Board of Directors of the Board of Directors preparation of the statements bookkeeping