Arctic Paper S.A.

Earnings Release • Feb 27, 2020

Attachment no 1 to the Current report no.3/2020 dated February 27th 2020

Table 1: Preliminary selected consolidated profit and loss account items

PLN '000	4Q 2019	3Q 2019	4Q 2018	YTD 2019	YTD 2018
Sales revenues	739,666	794,363	780,701	3,117,118	3,158,210
of which:
Sales of paper	532,036	563,801	539,094	2,206,815	2,263,284
Sales of pulp	207,630	230,562	229,543	910,304	894,926
Profit on sales	128,476	156,085	96,655	585,506	548,635
% of sales revenues	17.37	19.65	12.38	18.78	17.37
Selling and distribution costs	(87,238)	(81,487)	(93,058)	(336,862)	(347,045)
Administrative expenses	(22,152)	(24,520)	(27,695)	(88,527)	(91,042)
Other operating income	7,065	9,048	14,327	78,111	49,543
Other operating expenses	(12,982)	(8,524)	(14,423)	(46,806)	(34,102)
EBIT	13,168	50,602	(21,412)	191,422	125,988
% of sales revenues	1.78	6.37	(2.74)	6.14	3.99
EBITDA	34,909	71,512	3,006	278,031	218,777
% of sales revenues	4.72	9.00	0.38	8.92	6.93
Financial income	(172)	377	589	1,149	1,823
Financial expenses	(7,873)	(8,587)	(9,672)	(34,640)	(38,658)
Gross profit/(loss)	5,124	42,392	(33,278)	157,931	89,154
Income tax	407	(7,830)	(2,020)	(33,250)	(33,265)
Net profit/(loss)	5,531	34,562	(34,969)	124,681	55,889
% of sales revenues	0.75	4.35	(4.48)	4.00	1.77

Table 2: Preliminary selected consolidated balance sheet items

PLN '000	2019-12-31	2019-09-30	2018-12-31
Fixed assets	1,080,905	1,063,031	1,037,969
Inventories	353,774	393,806	478,614
Receivables	307,445	401,370	371,963
including trade receivables	302,121	390,248	365,946
Other current assets	27,744	42,724	64,794
Cash and cash equivalents	265,885	254,581	201,118
Assets related to discontinued operations	-	-	1,716
Total assets	2,035,753	2,155,512	2,156,174
Equity	870,528	912,154	861,193
Short-term liabilities	626,694	707,571	850,245
of which:		-
trade and other payables	435,366	491,360	516,678
interest-bearing debt	100,187	125,451	232,184
other non-financial liabilities	91,141	90,761	101,383
Long-term liabilities	538,531	535,786	441,381
of which:		-
interest-bearing debt	324,672	328,699	249,659
other non-financial liabilities	213,858	207,088	191,722
Liabilities directly related to the discontinued operations	-	-	3,355
Total liabilities	2,035,753	2,155,512	2,156,174

Table 3: Preliminary selected items of the consolidated cash flow statements

PLN '000	Q4 2019	Q3 2019	Q4 2018	YTD 2019	YTD 2018
Cash flows from operating activities of which:	117,386	119,407	80,486	342,290	148,609
Gross profit/(loss) Depreciation/amortisation and impairment	5124	42,392	(33,278)	157,931	89,154
charge	21,741	20,910	24,527	86,609	92,788
Changes to working capital	71,776	53,396	78,925	78,703	(52,774)
Other adjustments	18,745	2,709	10,312	19,047	19,441
Cash flows from investing activities	(47,634)	(42,206)	(59,232)	(121,834)	(173,970)
Cash flows from financing activities	(58,323)	(29,827)	(2,109)	(152,939)	(14,221)
Total cash flows	11,429	47,374	19,145	67,517	(39,583)