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Fon SE Interim / Quarterly Report 2019

Oct 25, 2019

5618_rns_2019-10-25_e0cb5bca-5e9f-4b16-b8ae-f64377abb70f.pdf

Interim / Quarterly Report

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FON SE

CONDENSED INTERIM FINANCIAL STATEMENT AS AT JUNE 30, 2019 AND FOR 6 MONTHS ENDED ON JUNE 30, 2019

PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS

TALLINN, 25/10/2019

TABLE OF CONTENTS

Condensed interim
Statement
of
financial
position…………………………….3
Condensed interim
Income
statement
………………………………….….………4
Condensed interim
Statement
of
comprehensive
income……………….4
Condensed interim
Statement
of
changes
in
equity………….…5
Condensed interim
Statement
of
cash
flow………….…………6
Additional information………………………………………………………….7

General
information…………………………………….….……………….…7
Notes
to
the
condensed
interim
financial
statement13
CONDENSED
INTERIM
STATEMENT
OF
FINANCIAL
SITUATION		 30/06/2019 31/12/2018 30/06/2018
A
s
s
e
t
s
I.
Fixed
assets		 8
385		 8
735		 13
584
Intangible
fixed
assets		 0 523
877
Property,
plant
and
equipment		 218 234
291
Long-term
financial
assets		 8
167		 7
978		 12
400
Long-term
accruals
and
prepayments		 0 0
16
II.
Current
assets		 1
292		 603
813
Inventory 9 105
295
Short-term
receivables		 861 13
18
Short-term
investments		 201 442
372
Cash
and
cash
equivalents		 220 40
123
Short-term
accruals
andprepayment		 1 3
5
A
s
s
et
s
t
o
t
a
l		 9
677		 9
338		 14
397
L
i
a
b
i
l
iti
e
s
I.
Equity		 9
665		 9
324		 14
365
Share
capital		 7
700		 7
700		 7
700
Supplementary
capital		 22
422		 22
422		 22
422
Capital
from
merger
of
entities		 3
865		 3
865		 3
811
Other
reserve
capital		 3
805		 3
805		 3
664
Revaluation
capital		 -11
664		 -11
664		 -7
611
Exchange
differences		 -172 -333 -1
285
Retained
profit
/
Undistributed
financial
result		 -16
291		 -16
471		 -14
336
II.
Long-term
liabilities		 0 0
18
Deferred
tax
provision		 0 0
16
Other
provisions		 0 0
2
III.
Short-term
liabilities		 12 14
14
Trade
liabilities		 10 6
6
Other
liabilities		 2 8
6
Other
provisions		 0 0
2
Revenues
of
further
periods		 0 0
0
L
i
a
b
i
l iti
e
s
t
o
ta
l		 9
677		 9
338		 14
397
Book 9 9 14
value 665 324 365
Number 8 70 70
of 750 000 000
shares 000 000 000
Book
value
per
share
(in
EUR)		 1,10 0,13 0,21
Diluted 8 70 70
numberof 750 000 000
shares 000 000 000
Diluted
book
value
per
share
(in
EUR)		 1,10 0,13 0,21

FON SE

Condensed interim financial statement as atJune 30, 2019 and for 6 months ended on June 30, 2019 /in EUR thous./

CONDENSED
INTERIM
INCOME
STATEMENT		 Six
months
ended
on
30/06/2019
unaudited		 Six
months
ended
on
30/06/2018
unaudited
I.
Net
revenues
from
sale
of
products,
goods
and
materials		 165 255
II.
Costs
of
products,
goods
and
materials
sold		 8 28
III.
Gross
profit
(loss)
on
sale
(I-II)		 157 227
IV.
Costs
of
sale		 0 0
V.
General
management
costs		 26 74
VI.
Other
operating
revenues		 192 6
VII.
Other
operating
costs		 190 434
VIII.
Profit
(loss)
on
operating
activity		 133 -275
IX.
Financial
revenues		 47 2
X.
Financial
costs		 0 276
XI.
Pre-ta
profit		 180 -549
XII.
Income
tax		 0 4
XIII.
Net
profit
(loss)		 180 -553
The
weighted
average
number
of
ordinary
shares		 8
750
000		 70
000
000
Profit
(loss)
per
one
ordinary
share
(in
EUR)		 0,02 -0,01
The
weighted
diluted
average
number
of
ordinary
shares		 8
750
000		 70
000
000
Diluted
profit
(loss)
per
one
ordinary
share
(in
EUR)		 0,02 -0,01
CONDENSED
INTERIM
STATEMENT
OF
COMPREHENSIVE
INCOME		 Six
months
ended
on
30/06/2019
unaudited		 Six
months
ended
on
30/06/2018
unaudited
Net
profit/loss
for
the
period		 180 -553
Other
comprehensive
income,
including:		 0 0
Items
to
be
reclassified
to
the
income
statement
in
the
further
periods 0 4
-
settlement
of
revaluation
capital,
including:		 0 4
-
valuation
of
financial
instruments		 0 4
Items
which
will
not
be
reclassified
to
the
income
statement
in
the
further
periods		 0 -4
-
settlement
of
merger
of
entities		 0 -4
Total
income
for
the
period		 180 -553
CONDENSED
INTERIM
STATEMENT
OF
CHANGES
IN
EQUITY		 Six
months
ended
on
June
30,
2019		 2018 Six
months
ended
on
June
30,
2018
I.
Opening
balance
of
equity		 9
324		 14
365		 14
903
a)
amendments
of
applied
accounting
principles
(policy)
b)
change
of
currency		 333 746
c)
exchange
differences
I.I.
Opening
balance
of
equity
afterreconciliation
to
comparable
data		 9
657		 15
111		 14
903
Opening
balance
of
share
capital		 7
700		 8
379		 8
361
Changes
in
the
share
capital		 -679 -661
a)
increase
(due
to)		 0 0
-
issuance
of
shares		 0
b)
decrease
(due
to)		 -679 661
-
reduction
of
the
capital		 -670 661
-
exchange
differences		 -9
Closing
balance
of
share
capital		 7
700		 7
700		 7
700
Opening
balance
of
own
shares		 0 0
0
Changes
in
own
shares		 0 0
0
Closing
balance
of
own
shares		 0 0
0
Opening
balance
of
supplementary
capital		 22
422		 22
422		 22
422
Changes
in
supplementary
capital		 0 0
a)
increase
(due
to)		 0 0
-
reduction
of
the
share
capital's
nominal
value		 0 0
b)
decrease
(due
to)		 0 0
-
settlement
of
merger
of
entities		 0 0
Closing
balance
of
supplementary
capital		 22
422		 22
422		 22
422
Opening
balance
of
revaluation
capital		 -11
664		 -7
951		 -7
614
Changes
in
revaluation
capital		 -3
713		 3
a)
increase
(due
to)		 0 3
-
valuation
of
financial
assets		 0 3
b)
decrease
(due
to)		 -3
713		 0
-
valuation
of
financial
assets		 -3
713		 0
Closing
balance
of
revaluation
capital		 -11
664		 -11
664		 -7
611
Opening
balance
of
capital
from
merger		 3
865		 3869 3
815
Changes
in
the
capital
from
merger		 -4 -4
b)
decrease
(due
to)		 -4 -4
-
merger
of
entities		 -4 -4
Closing
balance
of
capital
from
merger		 3
865		 3
865		 3
811
Opening
balance
of
other
reserve
capitals		 3
805		 3
135		 3
003
Changes
in
other
reserve
capitals		 670 661
a)
increase
(due
to)		 670 661
-
reduction
of
the
share
capital		 670 661
b)
decrease
(due
to)		 0 0
Closing
balance
of
other
reserve
capitals		 3
805		 3
805		 3
664
Opening
balance
of
not
settled
loss
of
previous
years		 -16
471		 -14
385		 -13
799
a)
increase
(due
to)		 0 0
-
profit/loss
for
the
period		 180 0
0
b)
decrease
(due
to)		 -2
086		 -537
-
profit/loss
for
the
period		 -2
086		 -537

Condensed interim financial statement as atJune 30, 2019 and for 6 months ended on June 30, 2019 /in EUR thous./

Closing
balance
of
not
settled
loss
of
previous
years		 -16
291		 -16
471		 -14
336
Exchange
differences
from
conversion
of
obtained
revenue
/
loss
into
EUR		 814 410
0
Exchange
differences
from
share
capital		 -380 -234 -336
Exchange
differences
from
supplementary
capital		 -807 -648 -949
Exchange
differences
from
reserve
capital		 -188 230
0
Exchange
differences
from
other
provisions		 389 -91
0
II.
Closing
balance
of
equity		 9
665		 9
324		 14
365
CONDENSED
INTERIM
CASH
FLOW
STATEMENT		 Six
months
ended
on
June
30,
2019
unaudited		 Six
months
ended
on
June
30,
2018
unaudited
Operating
activity		 0
I.
Gross
profit
(loss)		 180 -549
II.
Adjustments
total		 -826 577
Amortization 0 26
(Profits)
losses
from
exchange
differences		 0 -2
Interest
and
contribution
in
profits(dividends)		 -161 -233
(Profit)
loss
due
to
investment
activities		 -47 705
Change
in
the
balance
of
provisions		 0 0
Change
in
the
balance
of
inventories		 0 1
Change
in
the
balance
of
receivables		 -829 3
Change
in
the
balance
of
liabilities		 0 -18
Change
in
the
balance
of
accruals
and
prepayments		 0 -3
Other
adjustments		 210 98
I.Net
cash
flow
from
operating
activity		 -646 28
Investment
activity
I.
Inflows
from
investment
activities		 970 4
329
Received
repayments
of
loans		 387 4
215
Sale
of
elements
of
intangible
fixed
assets
and
property,
plant
and
equipment		 576 0
Interest
received		 7 114
Other
inflows
-
repayments
of
short-term
agreements		 0
II.
Expenses
due
to
investment
activity		 145 4
319
Acquisition
of
intangible
fixed
assets
and
tangible
fixed
assets		 0 0
Expenses
for
acquisition
of
financial
assets		 0 0
Loans
granted		 145 4
319
Other
expenses		 0 0
II.
Net
cash
flow
from
investment
activity		 826 10
Financial
activity		 0
I.
Inflows		 0 0
II.
Expenses
due
to
financialactivity		 0 0
III.
Net
cash
flow
from
financial
activity		 0 0
Net
cash
flow,
total
(I+/-II+/-III)		 179 38
Balance
sheet
change
in
cash		 179 38
Opening
balance
of
cash		 40 85
Closing
balance
of
cash		 219 123

Selected explanatory data

  • 1. General information
  • 1.1. Information about the Company

Name of the Company: FON SE

  • On 19/04/2018 there was registered merger of the Issuer, previously operating as a public limited company under Polish law under the name of FON Spółka Akcyjna with its registered office in Płock at Padlewskiego Street 18C, Poland, entered in the Register of Entrepreneurs of the National Court Register kept by the DistrictCourt for the Capital City of Warsaw in Warsaw, 14th Commercial Division, under the number 0000028913, NIP 5480075844, REGON 070009914 with FON1 Polska Akciová společnost headquartered in Ostrava, address: Poděbradova 2738/16, MoravskáOstrava, 702 00 Ostrava, the Czech Republic entered to the commercialregister kept by the District Court in Ostrava, section B under the number 10981, identification number 06503390 (the Acquired Company).
  • As a result of registration of merger by the DistrictCourt for the Capital City of Warsaw in Warsaw, the Issuer has changed its legal form to the European Company and has already started operating as FON SE headquartered in Płock at Padlewskiego Street 18C, Poland, entered in the Register of Entrepreneurs of the National Court Register kept by the District Court for the Capital City of Warsaw in Warsaw, 14th Commercial Division, under the number 0000728655, REGON 070009914 and NIP 5480075844.
  • On 30/11/2018 the commercialregister appropriate for the Estonian law (Ariregister) registered the transfer of the Issuer's registered office to Estonia. Since 30/11/2018 the Company is being entered in Tartu County Court Registration Department, registry code: 14617916.

Address:

  • to 30/11/2018 Płock 09-402, ul. Padlewskiego18C
  • since 01/12/2018 Narva mnt 5, 10117 Tallinn, Estonia
  • since 05/06/2019 Harju maakond, Tallinn, Kesklinna linnaosa, Tornimäe tn 5, 10145 Estonia.

Tax identification number:

The Company is not registered as a VAT taxpayer after transferring its seat to Estonia. The Company has a tax identification number: 14617916.

Business activity according to the Estonian Business Classification:

"Activities of holding companies", EMTAK No 64201.

Duration of the Company:

Duration of the Company is indefinite.

Registry courtof the Company:

Since 30/11/2018 the Company is entered in the Registration Department of the District Court in Tartu, registry code 14617916.

1.2. MANAGEMENT BOARD OF THE COMPANY:

In the reporting period, the composition of the Issuer's Management Board was as follows:

Damian Patrowicz – Chairman of the Company

On 04/07/2018, Mr Damian Patrowicz was dismissed from the functionof the Supervisory Board Member of the Issuer and appointed by the Supervisory Board to the function of the Chairman of the Management Board.

1.3. SUPERVISORY BOARD OF THE COMPANY:

The composition of the Supervisory Board in the reporting period was as follows:

  • Wojciech Hetkowski Chairman of the Supervisory Board
  • Małgorzata Patrowicz Secretary of the Supervisory Board
  • Jacek Koralewski -Member of the Supervisory Board
  • Martyna Patrowicz -Member of the Supervisory Board

On 11/01/2019 Mr. Mariusz Patrowicz resigned from his position on the Company's Supervisory Board.

1.4. FINANCIAL YEAR:

On 06/05/2019 the Register of Commercial Companies (Ariregister) applicable to the law of Estonia registered the change in the financial year pursuant to Resolution No. 3 of the Extraordinary General Meeting of Shareholders of 29/04/2019. As a result of this, the Company's financial year begins on July 1 and ends on June 30.

2. Basis for preparation and accounting principles

Acting on the basis of § 184 (11) of the Securities Market Act, the management board of the company publicizes the half-year report of FON SE for the first half-year of 2019.

The semi-annual report consists of:

  • Condensed interim financial statements, including:
    • o Condensed interim statement on financial situation as at 30/06/2019, 31/12/2018 and as at 30/06/2018.
    • o Condensed interim income statement,condensed interim statement on comprehensive income for the period since 01/01/2019 to 30/06/2019 and since 01/01/2018 to 30/06/2018.
    • o Condensed interim statement on changes in equity for the period since 01/01/2019 to 30/06/2019 and since 01/01/2018 to 30/06/2018.
    • o Condensed interim statement on cash flow for the period since 01/01/2019 to 30/06/2019 and since 01/01/2018 to 30/06/2018.

2.1. Statement of compliance

Condensed interim financial statement was prepared in accordance with International Financial Reporting Standards ("IFRS") approved by the Board of the International Accounting Standards and interpretations issued by the International Financial Reporting Interpretations ("IFRIC") Committee.

2.2. Basis for preparation

The condensed interim financial statements were prepared in accordance with International Accounting Standard 34 - 'Interim Financial Reporting' that was approved by the European Union and with assumption that the Company will be going concern in the foreseeable by the Company future. The financial statement was approved by the Management Board for publication on October 25, 2019.

Application of the new standards, amendments to standards and interpretations

In 2019 the Company has not applied any new standards, amendments to standards as well as interpretations for existing standards.

In presented financial statements the same accounting principles were followed as the one described in the latest annual financial statements as atDecember 31, 2018, excluding accounting principles resulting from application of IFRS 9 and IFRS 15 presented below.

Influence of the new and changed standards and interpretations.

The International Accounting Standards Board approved the new standards to be used since January 1, 2018:

  • IFRS 9 "Financial instruments" which has replaced IAS 39 'Financial Instruments: Recognition and Measurement',

  • IFRS 15 'Revenues from Contracts with Customers' and amendments to IFRS 15 explaining some requirements of the standard which has replaced standards of IAS 11 and 18 and interpretations: IFRIC 13, IFRIC 15, IFRIC 18 and SIC 31.

Influence of application of aforementioned standards on accounting policy of the Company and on the financial statements.

IFRS 9 Financial Instruments.

The Company has not implemented earlier introduction of IFRS 9 and has applied the requirements of IFRS 9 retrospectively for the periods starting after January 1, 2019. Pursuant to allowed by this standard possibility, the Company has not adjusted the comparative data. Implementation of IFRS 9 influenced the accounting policy in the field of recognition, classification and valuation of financial assets, assessment of liabilities.

Published and approved byEU standards, which have not entered into force yet.

In this report, the Company has not implemented standards, amendments of standards and interpretations which were published and approved by the EU buthave not entered into force yet. The Company does not envisage any significant influence of such standards on the Company's financial statements.

Selected elements of the accounting policy

Valuation of assets and financial liabilities.

Since January 1, 2018 the Company has qualified financial assets into the following categories:

  • measured at amortised cost,

  • measured at fair value through comprehensive income,

  • measured at fair value through financial result.

Classification is made upon initial recognition of assets. Classification of debt financial assets depends on the business model of financial assets management as well as on contractual cash flow characteristics (test SPPI-Solely Payment of Principal and Interest) for each element of financial assets.

Into the category of assets measured at amortised cost the Company classifies trade receivables, loans

granted which passed the SPPI test on, other receivables and cash and cash equivalents.Financial assets measured at amortised cost are valued in the amount of amortised cost using effective interest rate, taking into accountwirte-offs due to impairment loss. Trade receivables with maturity period up to12 months from its origination date are not discounted and are measured at nominal value.

In case of financial assets purchased or emerged, impaired at the moment of initial recognition, these assets are measured at amortised cost using effective interest rate adjusted for credit risk.

Into the category of assets measured at fair value through other comprehensive income are classified:

  1. element of debt financial assets if there are fulfilled the following conditions:

  2. it is kept in business model which aim is to receive contractual cash flows due to owned financial assets as well as due to sales of financial assets, and

  3. contractual conditions give the right to receive, in specified dates, cash flows constituting only on capital and interest on capital (it means it passed the SPPI test on).

  4. Equity instrument for which there wasmade an irreversible classification to this category at the moment of initial recognition. The option of the fair value through comprehensive income is not possible for instruments dedicated to trading.

Profits and losses, either from valuation or realization, emerged from these assets are recognized in other comprehensive income, excluding income from received dividends.

To the category of assets measured at fair value through financial result the Company classifies loans granted which did not pass the contractual cash flows test.

Profits and losses on financial assets measured at fair value through financial result are recognized in the financial result from the period in which they emerged (including income due to interest and dividends).

Since January 1, 2018 the Company classifies financial liabilities to the following categories:

  • measured at amortised cost,

  • measured at fair value through financial result,

  • securing financial instruments.

To the group of liabilities measured at amortised cost are classified liabilities other than those measured at fair value through financial result (i.a. liabilities due to deliveries and services, credits and loans), except for:

  • financial liabilities arising in case of transfer of financial assets which are not classified to derecognition,

  • agreements on financial guarantees which are measured at higher amount from the following:

  • value of the write-off for excepted credit losses settled according to IFRS 9 - value initially recognized (i.e. at fair value increased by costs of transaction that may be directly assigned to the financial liabilities component), reduced by accumulated amount of income recognized according to provisions of IFRS 15 Revenue from contracts with customers.

To liabilities measured at fair value through financial result are classified liabilities due to derivatives which are not assigned for hedge accounting purposes.

Impairment of financial assets

IFRS 9 introduces a new approach to estimation of losses with regard to financial assets measured at amortised cost. This approach is based on designation of expected losses, independently on the fact whether there were any premises to do it or not.The Company applies the following models of determining impairment write-offs:

  • general model (basic),

  • simplified model.

In the general model, the Company monitors changes of credit risk's level related to the particular component of the financial assets.

In the simplified model the Company does not monitors changes of credit risk's level during the instrument's lifetime, estimates expected credit loss within the maturity date of the instrument.

To estimate expected credit loss the Company uses:

  • in the general model - levels of probability of insolvency,

  • in the simplified model – historical levels of repayment of receivables from contractors.

As insolvency event, the Company recognizes lack of obligation's fulfilment by a contractor after 90 days since maturity date of a receivable.

The Company takes into accountinformations regarding future in applied parameters of model for estimating expected loss, by adjustment of basic indexes of insolvency probability (for receivables) or by calculation of parameters of insolvency probability on the basis of current market quotes (for other financial assets).

The Company applies the simplified model of calculation of impairment write-offs for trade receivables. The general model is applied for other types of financial assets, including debt financial assets measured at fair value through other comprehensive income.

Impairment losses for debt financial instruments measured at amortised cost (at the moment of initial recognition and calculated for every next day ending financial period) are recognized in other operating costs.

Profits (reversal of the write-off) due to reduction of value of expected impairment loss are recognized in

other operating revenues.For purchased and emerged financial assets impaired due to credit risk at the moment of initial recognition, favourable changes of expected credit losses are recognized as impairment profit in other

operating revenues.Losses due to impairment of debt financial instruments measured at fair value through other comprehensive income are recognized in other operating costs in correspondence with other comprehensive income.

Profits (reversal of a write-off) due to reduction of value of expected credit loss are recognized in other operating revenues.

2.3. Functional and reporting currency.

This financial report was prepared in EUR. The functional currency of the Company is Polish zloty (PLN) and reporting (presentational) currency of the Company is EUR. The financial statements are presented in EUR thousand. The financial statements are prepared with assumption that the Company will going concern in the foreseeable future.

This condensed interim financial statements were prepared in accordance with International Accounting Standard 34 - 'Interim Financial Reporting' that was approved by the European Union and with assumption that the Company will be going concern in the foreseeable by the Company future.

The financial statement was approved by the Management Board for publication on October 25, 2019.

This condensed interim financial statement was not subjected into audit or review by the certified auditor. The annual financial statements for 2018 is the latest financial statement which was audited by a certified auditor.

2.4 Accounting principles applied for preparation of the condensed financial statements.

In presented financial statements the same accounting principles were followed as the one described in the latest annual financial statements as atDecember 31, 2018.

Pursuant to the Resolution of the General Meeting of FON SE of June 30, 2005, starting from financial statements for reporting periods which have began since January 1, 2005, the financial statements of the Company have been prepared in accordance with International Financial Reporting Standards and related interpretations published in the form of regulations of the European Commission.

2.5. Seasonality and periodicity of activity

Activity of the Company is not characterized with seasonality or periodicity.

FON SE Condensed interim financial statement as atJune 30, 2019 and for 6 months ended on June 30, 2019 /in EUR thous./

3. Notes

3.1 Information on operating segments

The operating segment is a component of the entity:

a) which engages in economic activity in connection with which it may generate revenues and incur costs (including revenues and costs related to transactions with other components of the same entity),

b) whose operating results are regularly reviewed by the main body responsible for making operational decisions in the entity and using those results in making decisions on the allocation of resources to the segment and when assessing the results of segment operations, as well as

c) for which separate financial information is available.

In accordance with the requirements of IFRS 8, operating segments should be identified based on internal reports on those elements of the Company that are regularly verified by persons deciding on the allocation of resources to a given segmentand assessing its financial results.

Below is an analysis of the Company's revenues and results in individual segments covered by reporting.

In the first half of 2019, the Company distinguished the following operating segments:

    1. Sales of plots
    1. Financial activity (loans granted)
    1. Sales of energy
    1. Other, including unallocated income and expenses
SEGMENTS
DATA
for
the
period
since
01/01/2019
to
30/06/2019		 Sales
of
plots		 Sales
of
energy		 Financial
activity		 Other
income
and
expenses
unallocated		 Total
I. Segment
revenue		 0 25 140 0 165
II. Segment
costs		 0 6 0 2 8
III Segment
gross
result
from
divisions
business		 0 19 140 -2 157
I Sales
costs		 0 0
II Management
costs		 26 26
III Other
operating
revenue		 192 192
IV Other
operating
cost		 190
V Financial
revenue		 47 47
VI Financial
costs		 0 0
PROFIT
BEFORE
TAXATION		 180

The above revenues are revenues from external customers. There were no sales transactions between segments this year.

Segment profit is the profit generated byindividual segments without the allocation of administrative costs and management fees as well as financial revenues and costs

Segment assets and liabilities

Segment
assets
as
at
30/06/2019
Sales
of
plots
Sales
of
energy
Financial
activity
Other
income
and
expenses
unallocated
Unallocated
assets		 9
677
Total
assets		 9
677
Segment
liabilities
as
at
30/06/2019
Sales
of
plots
Sales
of
energy
Financial
activity
Other
income
and
expenses
unallocated
Unallocated
assets		 12
Total
liabilities		 12

  1. All assets, except current and deferred tax assets, other financial assets, and short-term financial assets are allocated to reporting segments. Assets used jointly by reporting segments have been assigned to a given segment based on rational premises.

  2. All liabilities, except for other financial liabilities, current tax liabilities are allocated to reporting segments and deferred. Liabilities assigned to various reporting segments were allocated in proportion to the value of segment assets.

Other information about segments as at 30/06/2019

OTHER
INFORMATION		 DEPRECIATION INCREASE
OF
FIXED
ASSETS
Sales
of
plots		 0 0
Sales
of
energy		 0
Financial
activity		 0
Other
income
and
expenses
unallocated		 0
Total 0

Geographical information as at 30/06/2019

The following is the revenue from external customers broken down by operational areas and information on non-current assets broken down by location of these assets:

GEOGRAPHICAL
AREA
FOR
ENERGY
SALES		 REVENUE
FROM
EXTERNAL
CUSTOMERS		 FIXED
ASSETS
KUCZBORK 25
Total
for
energy
sales		 25
GEOGRAPHICAL
AREA
FOR
FINANCIAL
ACTIVITY		 REVENUE
FROM
EXTERNAL
CUSTOMERS		 FIXED
ASSETS
PŁOCK 140
Total
for
financial
activity		 140
GEOGRAPHICAL
AREA
FOR
OTHER
SALES		 REVENUE
FROM
EXTERNAL
CUSTOMERS		 FIXED
ASSETS
PŁOCK 0
Total
for
other
sales		 0

In the first half of 2018, the Company distinguished the following operating segments:

    1. sales of plots
    1. financial activity (loans granted)
    1. sales of energy
    1. other, including unallocated income and expenses
SEGMENTS
DATA
for
the
period
since
01/01/2018
to
30/06/2018		 Sales
of
plots		 Sales
of
energy		 Financial
activity		 Other
income
and
expenses
unallocated		 Total
I. Segment
revenue		 0 19 231 5 255
II. Segment
costs		 0 27 0 1 28
III Segment
gross
result
from
divisions
business		 0 -8 231 4 227
I Sales
costs		 0 0 0 0 0
II Management
costs		 74 74
III Other
operating
revenue		 6 6
IV Other
operating
cost		 434 434
V Financial
revenue		 2 2
VI Financial
costs		 276
276
PROFIT
BEFORE		 -549 -549
TAXATION

The above revenues are revenues from external customers. There were no sales transactions between segments this year.

Segment profit is the profit generated byindividual segments without the allocation of administrative costs and management fees as well as financial revenues and costs

Segment assets and liabilities

Segment
assets
as
at		 30/06/2018
Sales
of
plots		 289
Sales
of
energy		 276
Financial
activity		 158
Other
income
and
expenses
unallocated		 3
Unallocated
assets		 13
671
Total
assets		 14
397
Segment
liabilities
as
at		 30/06/2018
Sales
of
plots		 0
Sales
of
energy		 0
Financial
activity		 6
Other
income
and
expenses
unallocated		 0
Unallocated
liabilities		 26
Total
liabilities		 32

  1. All assets, except current and deferred tax assets, other financial assets, and short-term financial assets are allocated to reporting segments. Assets used jointly by reporting segments have been assigned to a given segment based on rational premises.

  2. All liabilities, except for other financial liabilities, current tax liabilities are allocated to reporting segments and deferred. Liabilities assigned to various reporting segments were allocated in proportion to the value of segment assets.

Other information about segments as at 30/06/2018

OTHER
INFORMATION		 DEPRECIATION INCREASE
OF
FIXED
ASSETS
Sales
of
plots		 0 0
Sales
of
energy		 2 0
Financial
activity		 23 0
Other
income
and
expenses
unallocated		 0 0
Total 25 0

Geographical information as at 30/06/2018

The following is the revenue from external customers broken down by operational areas and information on non-current assets broken down by location of these assets:

GEOGRAPHICAL
AREA
FOR
SALE
OF
PLOTS		 REVENUE
FROM
EXTERNAL
CUSTOMERS		 FIXED
ASSETS
PŁOCK 0 0
Total
for
sale
of
plots		 0 0
GEOGRAPHICAL
AREA
FOR
ENERGY
SALES		 REVENUE
FROM
EXTERNAL
CUSTOMERS		 FIXED
ASSETS
KUCZBORK 20 260
Total
for
energy
sales		 20 260
GEOGRAPHICAL
AREA
FOR
FINANCIAL
ACTIVITY		 REVENUE
FROM
EXTERNAL
CUSTOMERS		 FIXED
ASSETS
PŁOCK 230 31
Total
for
financial
activity		 230 31
GEOGRAPHICAL
AREA
FOR
OTHER
SALES		 REVENUE
FROM
EXTERNAL
CUSTOMERS		 FIXED
ASSETS
PŁOCK 5 0
Total
for
other
sales		 5 0

4. Seasonality of activities

There is no seasonality in the revenues generated by the Company.

5. Description of factors and events, in particular of an unusual nature, having a significant impact on the financial results achieved.

In the reporting period, there were no itemsaffecting assets, liabilities, equity, net profit or cash flows that are unusual due to their type, size or frequency.

6. Intangible assets

30/06/2019 31/12/2018
INTANGIBLE
ASSETS		 (unaudited) (audited)
Intangible
assets:		 0 523
-
Research
and
development
costs		 0 0
-
Goodwill		 0 0
-
Concessions,
patents,
licenses		 0 0
-
Other
intangible
assets		 0 523
-
Advances
for
intangible
assets		 0 0

7. Property, plant and equipment

PROPERTY,
PLANT
AND
EQUIPMENT		 30/06/2019 31/12/2018
(unaudited) (audited)
a)
fixed
assets,
including:		 234
-
land
(including
right
of
perpetual
usufruct
of
land)		 2 11
-
buildings,
premises
and
civil
engineering
works		 9
-
technical
devices
and
machines		 216 214
-
means
of
transport		 0
-
other
fixed
assets		 0
b)
fixed
assets
under
construction		 0
c)
advances
for
fixed
assets
under
construction		 0
Total
property,
plant
and
equipment		 218 234
30/06/2019 31/12/2018
BALANCE
SHEET
FIXED
ASSETS
(OWNERSHIP
STRUCTURE)		 (unaudited) (audited)
a)
own		 218 234
b)
used
under
a
leasing
contract		 0
Total
balance
sheet
fixed
assets		 218 234

In the period from January 1 to June 30, 2019, the Company did not purchase any property, plant and equipment.

Impairment losses did not occur in the financial year.

8. Investment liabilities

As atJune 30, 2019, the Company has no investment liabilities.

9. Long-term receivables

In the first half of 2019 there were no long-term receivables.

10. Investment property

In the first half of 2019 no investment properties have been identified.

11. Long-term investments

LONG-TERM
FINANCIAL
ASSETS		 30/06/2019
(unaudited)		 31/12/2018
(audited)
a)
in
subsidiaries		 0 0
-
shares
and
stocks		 0 0
b)
in
other
related
entities		 8
167		 7
978
-
long-term
loans		 4
572		 4
424
-
shares
in
companies		 3
595		 3
554

FON SE

Condensed interim financial statement as atJune 30, 2019 and for 6 months ended on June 30, 2019

/in EUR
thous./
c)
in
other
entities		 0 0
-
shares
in
domestic
companies
not
listed
on
the
stock
exchange 0 0
-
shares
in
companies		 0 0
-
shares
and
borrowed
shares		 0 0
-
loans
granted		 0 0
Total
long-term
financial
assets		 8
167		 7
978

Shares and stocks

Name
(Company)
of
the
entity
with
indication
of
the
legal
form		 Value
of
shares
atthe
purchase
price
(in
thousand
EUR)		 Carrying
amount
of
the
shares
(in
thousand
EUR)
1 IFEA
Sp.
z
o.o.		 15
168		 3
593
2 Fon
Zarządzanie
nieruchomościami
Sp.
z
o.o.		 2 2

The Company currently holds 12.899 shares of IFEA Sp. z o.o., which currently represents 44,58% of the share capital and the total number of votes of IFEA Sp. z o.o., the Issuer also informs that the Chairman of the Management Board of IFEA Sp. z o.o. Mrs. Małgorzata Patrowicz is a Member of the Issuer's Supervisory Board. As atthe balance sheet date, the value of shares held in IFEA sp. z o.o. is PLN 15.277 thousand as at the date of publication of this report, the value update in the amount of PLN 49.218 thousand. Premises for revaluation result from determining the share of shares held in relation to the equity of IFEA sp. z o.o.

LONG-TERM
INVESTMENTS
IN
LOANS
AND
LOANS
FOR
OTHER
RELATED
ENTITIES
Name Headquarter The
value
of
loan/credit
according
to
agreement		 The
value
of
credit/loan
to
repay		 Interest Repay-
ment
day		 Collateral
PLN Curre-
ncy		 PLN Curre-
ncy
Nowy
Wiatr
sp.
z
o.o.		 Płock 4
700
000,00		 PLN 4
379
413,04		 PLN 6,50% 31.12.20
19		 Bill
of
exchange
Elkop
SE		 Płock 19
042
400,00		 PLN 20
003
694,64		 PLN WIBOR
1M+4,5
%		 24.04.20
21		 Bill
of
exchange,
mortgage

* The company has created a write-off for the loan of Nowy Wiatr sp.z o.o. in the amount of PLN 4 379 413,04 =1 029 965,44 EUR

FON SE Condensed interim financial statement as atJune 30, 2019 and for 6 months ended on June 30, 2019 /in EUR thous./

LONG-TERM
INVESTMENTS
IN
LOANS
AND
LOANS
FOR
OTHER
RELATED
UNITS
Name Headqua
rter		 The
value
of
loan/credit
according
to
agreement		 The
value
of
credit/loan
to
repay		 Interest Repayment
day		 Collateral
Curre- Curre-
EUR ncy EUR ncy
Nowy
Wiatr		 Bill
of
sp.
z
o.o.		 Płock 1
105
362,18		 EUR 1
029
965,44		 EUR 6,50% 31.12.2019 exchange
WIBOR Bill
of
Elkop
SE		 Płock 4
478
457,20		 EUR 4
704
537,78		 EUR 1M+4,5 24.04.2021 exchange,
% mortgage

* The company has created a write-off for the loan of Nowy Wiatr sp.z o.o. in the amount of 1 029 965,44 EUR

12. Inventory

INVENTORY 30/06/2019
(unaudited)		 31/12/2018
(audited)
-
Materials		 0 0
-
Semi-finished
products
and
work-in-progress		 0 0
-
Finished
products		 0 0
-
Goods		 6 105
-
Advance
payment		 3 0
Total
inventory		 9 105
INVENTORY
WRITE-OFFS		 30/06/2019
(unaudited)		 31/12/2018
(audited)
Revaluation
write-offs
at
the
beginning
of
the
period		 0 0
-
increases		 0 -189
-
decreases		 0 0
Sales 0 0
Revaluation
write-offs
at
the
end
of
the
period		 0 -189
Total
write-offs		 0 -189

13. Receivables

LONG-TERM
RECEIVABLES		 30/06/2019
(unaudited)		 31/12/2018
(audited)
Trade
receivables		 7 1
-
up
to
12
months		 7 1
-
above
12
months		 0
Taxes,
customs,
social
and
health
insurance
and
other		 1 0
benefits
-
other		 853 12
Total
net
short-term
receivables		 861 13
-
write-offs
on
receivables		 216 214
Total
short-term
receivables		 1
077		 227

Condensed interim financial statement as atJune 30, 2019 and for 6 months ended on June 30, 2019 /in EUR thous./

CHANGE
OF
THE
STATE
OF
WRITE-OFFS
ON
SHORT-TERM
RECEIVABLES		 30/06/2019
(unaudited)		 31/12/2018
(audited)
As
at
the
beginning
of
the
period		 214 222
-
exchange
differences		 2 -6
a)
increases
(due
to)		 0 2
b)
decreases
(due
to)		 0 -4
-
reversal
of
write-offs
in
connection
with
payment		 0 -4
-
other		 0 0
Write-offs
on
current
receivables
atthe
end
of
the
period		 216 214

14. Short-term investments

SHORT-TERM
INVESTMENTS		 30/06/2018
(unaudited)		 31/12/2018
(audited)
1)
in
associates		 0 0
Shares/stocks 0 0
2)
in
other
entities		 201 442
a)
loans
granted		 201 442
b)
shares
of
listed
companies		 0 0
c)
loan
of
company
shares
(balance
sheet		 0 0
value)
d)
investment
option		 0
Total
carrying
amount		 201 442
SHORT-TERM INVESTMENTS FOR LOANS
AND		 LOANS
FOR		 OTHER ENTITIES
(in		 PLN)
Name Headquarter The
value
loan/credit
to
agreement		 of
The
according		 value
of
credit/loan
to
repay		 Repay-
ment
day		 Collateral
PLN currency PLN currency
Fly.pl
sp.
o.o.*		 z
Warszawa		 1
506
111,86		 PLN 450
000,00		 PLN Wibor
3M+1%		 04.01.20
17		 Bill
of
exchange,
declaration
of
submission
to
enforcement
Auto
Kluge		 Płock 500
000,00		 PLN 221
546,05		 PLN 10% 31.08.20
16		 Bill
of
exchange,
declaration
of
submission
to
enforcement,
transfer
of
ownership
as
collateral
Natural
person		 Płock 329
565,00		 PLN 163
565,00		 PLN 14% 24.08.20
17		 Bill
of
exchange
transfer
to
ownership
for
collateral,
submission
to
enforcement
Natural
person		 Płock 37
000,00		 PLN 15
229,53		 PLN 8% 31.12.20
17		 Blank
promissory
note,
pledge

* The Company has created a write-off for loans FLY.pl sp.z o.o. in the amount of 906 111,86 PLN

SHORT-TERM INVESTMENTS FOR LOANS
AND		 LOANSFOR OTHER ENTITIES
(in		 EUR)
Name Headquarter The
value
of
loan/credit
according
to
agreement		 The
value
of
credit/loan
to
repay		 Interest Repay-
ment
day		 Collateral
EUR Currency EUR Currency
Fly.pl
sp.
o.o.*		 z
Warszawa		 354
212,57		 EUR 105
832,55		 EUR Wibor
3M+1%		 04.01.2017 Bill
of
exchange,
declaration
of
submission
to
enforcement
Bill
of
exchange,
declaration
of
submission
to
enforcement,
transfer
of
Auto
Kluge		 Płock 117
591,72		 EUR 52
103,96		 EUR 10% 31.08.2016 ownership
as
collateral
Osoba
fizyczna		 Płock 77
508,23		 EUR 38
915,29		 EUR 14% 24.08.2017 Bill
of
exchange
transfer
to
ownership
for
collateral,
submission
to
enforcement
Osoba
fizyczna		 Płock 8
701,79		 EUR 3
581,73		 EUR 8% 31.12.2017 Blank
promissory
note,
pledge

* The Company has created a write-off for loans FLY.pl sp.z o.o. in the amount of 213 102,50 EUR

15.
Cash
and
cash
equivalents
------------------------------------------- --
CASH
AND
CASH
EQUIVALENTS		 30/06/2019
(unaudited)		 31/12/2018
(audited)
Cash
in
hand
and
on
accounts		 220 40
Other
cash		 0
Total
cash
and
cash
equivalents		 220 40

16. Prepayments and accruals

SHORT
TERM
PREPAYMENTS
AND
ACCRUALS		 30/06/2019
(unaudited)		 31/12/2018
(audited)
a)
active
prepayments
and
accruals,
including:		 1 3
-
costs
for
subsequent
periods		 1 3
Total
short-term
prepayments
and
accruals		 1 3

17. Assets held for sale

There are no assets held for sale on 30/06/2019.

18. Reserves and revaluation write-offs

In the first half of 2019, the following changes in provisions and write-offs were made:

Other
short-term
reserve
/
in
EUR
thous./
As
at
of
01/01/2019		 Increase
of
reserve		 Dissolution/reclassification
of
reserve		 As
at
of
30/06/2019
0 0 0 0
Other
long-term
reserve
/
in
EUR
thous./
As
at
of
01/01/2019		 Increase/reclassification
of		 Dissolution
of
reserve		 As
at
of
30/06/2019
reserve
0 0 0 0

There are no reserves for restructuring costs in the company.

Receivables
revaluation
write-off
/in
thous.
EUR/
As
at
01/01/2019		 Increase Decrease As
at
30/06/2019
216 0 0 216
Intangible
assets
revaluation
write-off
/
in
thous.
EUR
/
As
at
01/01/2019		 Increase Decrease As
at
30/06/2019
2
128		 0 2
128		 0
Long-term
financial
assets
revaluation
write-off
/
in
thous.
EUR
/
As
at
01/01/2019		 Changes As
at
30/06/2019
1
030		 0 1
030
Loans
granted
revaluation
write-off
/
in
thous.
EUR
/
As
at
01/01/2019		 Increase Decrease As
at
30/06/2019
1
247		 0 0 1
247

19. Capital

As at 30/06/2019 the Issuer's share capital is EUR 7.700.000,00 and is divided into 8.750.000 shares without nominal value, with a book value of EUR 0,11 EUR each, including:

Number
of
shares		 Book
value
of
each
share		 Type
of
shares
8
750
000		 0,11
EUR		 Ordinary
bearer
shares
dematerialized
Total: 8
750
000

The structure of shareholding as at 30/06/2019:

As at the balance sheet date i.e. 30/06/2019 to the best of the Management Board's knowledge, the shareholding structure was as follows:

Structure of direct shareholding

Shareholder Number
of
held
shares		 Share
in
the
share
capital
(%)		 Number
of
votes
from
shares
held		 Share
in
the
total
number
of
votes
at
the
GMS
(%)
Patro
Invest
OÜ		 2.931.250 33,5 2.931.250 33,5
Other 5.818.750 66,5 5.818.750 66,5
Total: 8.750.000 100,00 8.750.000 100,00
Structure
of
indirect
shareholding
Shareholder Number
of
held
shares		 Share
in
the
share
capital
(%)		 Number
of
votes
from
shares
held		 Share
in
the
total
number
of
votes
at
the
GMS
(%)
Damian
Patrowicz		 2.931.250 33,5 2.931.250 33,5
Other 5.818.750 66,5 5.818.750 66,5
Total: 8.750.000 100,00 8.750.000 100,00

Mr. Damian Patrowicz - - The President of the Issuer's Management Board indirectly holds the Issuer's shares through the subsidiary Patro Invest OÜ with registered office in Tallinn, Estonia.

To the bestknowledge of the Management Board as atthe date of publication of the periodic report for the first half of 2019 i.e. 25/10/2019 in the structure of direct and indirect shareholding and the number of shares held bythe abovementioned shareholders did not change as compared to the balance sheet date on 30/06/2019.

20. Information on the issue, redemption and repayment of debt and equity securities.

In the period covered by the report, this event did not occur in the Company.

21.
Own
stocks
OWN
STOCKS
(SHARES)
(NEGATIVE
VALUE)		 30/06/2019
(Not
audited)		 31/12/2018
(audited)
As
at
the
beginning
of
the
year		 0 0
Increases 0 0
-
purchase
of
own
shares
for
remission		 0 0
Decreases 0 0
-
remission		 0 0
Total
own
stock
(shares)
(negative
value)		 0 0

22. Supplementary capital

SUPPLEMENTARY
CAPITAL
FROM
THE
SALE
OF
SHARES
OVER
NOMINAL
VALUE
AND
THE
REDUCTION
OF
THE
SHARE
CAPITAL
AND
THE
CAPITAL
FROM
MERGER		 30/06/2019
(Not
audited)		 31/12/2018
(audited)
Total
supplementary
capital		 26
287		 26
287

23. Reserve capital

RESERVE
REVALUATION		 30/06/2019
(Not
audited)		 31/12/2018
(audited)
-
other
reserve
capitals		 3
758		 3
805
-
exchange
differences		 47
Total
reserve
capital		 3
805		 3
805
Revaluation
reserve		 30/06/2019
(Not
audited)		 31/12/2018
(Audited)
As
at
the
beginning
of
the
year		 -11
580		 -7
951
-
exchange
differences		 -84
Profit/loss
on
the
change
in
fair
value
of
available-for-sale
financial
assets		 0 -3
713
Sale
of
available-for-sale
financial
assets		 0
Total
revaluation
reserve		 -11
664		 -11
664

Capital from revaluation of available-for-sale financial assets includes the valuation of shares held in IFEA sp. z o.o.

Revaluations of available-for-sale financial assets to fair value are accounted in this item. The presented capital is not divided.

24. Retained profits

Profits from previous years may be paid to shareholders in accordance with the provisions of the Estonian Commercial Code.

25. Deferred tax provision

CHANGE
IN
RESERVES
FOR
DEFERRED
INCOME
TAX		 June
30,
2019		 December
31,
2018
1.
Deferred
income
tax
reserve
at
the
beginning
of
the
period,
including:		 0 0
a)
relative
to
profit
or
loss,
including:		 0 0
-
share
valuation
tax		 0 0
-
tax
on
unpaid
interest		 0 0
b)
relative
to
capital,
including:		 0 0
-
share
valuation
tax		 0 0
2.
Increase:		 0 0
a)
relative
to
a
period
financial
result
due
to
temporary
differences 0 0
-
share
valuation
tax		 0 0
-
tax
on
unpaid
interest		 0 0
b)
relative
to
capital
of
temporary
differences		 0
3.
Decrease:		 0 0
a)
relative
to
in
the
period's
financial
result
due
to
positive
temporary
differences		 0 0
-
investment
valuation		 0 0
-
tax
on
unpaid
interest		 0 0
-
Bonds
valuation
tax		 0 0
b)
relative
to
the
capital
due
to
the
temporary		 0 0
differences
-
share
valuation
tax		 0 0
4.
Deferred
income
tax
reserve
at
the
end
of
the
period,
including:		 0 0
a)
relative
to
financial
result,
including:		 0 0
-
share
valuation
tax		 0 0

FON SE

Condensed interim financial statement as atJune 30, 2019 and for 6 months ended on June 30, 2019

/in
EUR
thous./
----------------------- --
-
tax
on
unpaid
interest		 0 0
b)
relative
to
the
capital
due
to
the
temporary
differences		 0 0
-
share
valuation
tax		 0 0

26. Liabilities

In the first half of 2019. there were no long-term liabilities, and short-term liabilities were as follows:

SHORT-TERM
LIABILITIES		 30/06/2019
(Not
audited)		 31/12/2018
(Audited)
Liabilities
to
related
entities:		 0 0
-
trade
liabilities		 0 0
-
credits
and
loans		 0 0
-
Other
liabilities		 0 0
Liabilities
to
other
entities		 0 14
-
trade
liabilities		 10 6
-
credits
and
loans		 0 0
-
liabilities
arising
from
debt
securities		 0 0
-
tax,
customs,
insurance
and
other
liabilities		 2 0
-
other		 0 8
Total
short-term
liabilities		 12 14

Trade liabilities are interest-free and settled within 14-30 days. Tax, customs, insurance and other liabilities are interest-free.

27.
Other
reserves
-------------------------- --
CHANGES
IN
OHER
SHORT-TERM
RESERVES		 30/06/2019
(Not
audited)		 31/12/2018
(Audited)
Other
reserves
at
the
beginning
of
the
period,		 0
including: 0
-
relative
to
financial
result		 0 0
-
relative
to
equity		 0 0
Increase 0 0
-
reserve
for
balance
sheet
auditing		 0 0
Decrease 0 0
-
release
of
the
reserve
for
balance
sheet
auditing		 0 0
-
reclassification		 0 0
Total
other
reserves
at
the
end
of
the
period:		 0 0
CHANGES
IN
OTHER
LONG-TERM
RESERVES		 30/06/2019
(Not
audited)		 31/12/2018
(Audited)
Other
reserves
at
the
beginning
of
the
period,		 0
including: 0
-
relative
to
financial
result		 0 0
-
relative
to
equity		 0 0
Increase 0 0
-
reclassification		 0 0
Decrease 0 0
-
release
of
the
reserve
for
balance
sheet
auditing		 0 0
Total
other
reserves
at
the
end
of
the
period:		 0 0

28. Revenue for future periods

REVENUES
FOR
FUTURE
PERIODS		 30/06/2019
(not
audited)		 31/12/2018
(Audited)
Short-term 0 0
-
Remuneration
for
services
paid
in
advance		 0 0
Long-term 0 0
Total 0 0

29. Contingent liabilities and contingent assets

They did not occur in the period covered by the report.

30. Net revenues from the sale of products and goods

NET
REVENUES
FROM
SALE
OF
PRODUCTS
AND
GOODS
(ITEMIZED
STRUCTURE
–
TYPES
OF
ACTIVITIES)		 Six
months
ended
at
June
30,
2019
(not
audited)		 Six
months
ended
at
June
30,
2018
(not
audited)
Interest
revenues
on
investment
activity
(interest
on
loans
granted) 140 230
Sale
of
building-assembly
production		 0 0
Sale
of
Energy		 25 20
Rental
services		 0 5
Net
revenues
from
sale
of
products
and
goods,
total		 165 255
NET
REVENUES
FROM
SALE
OF
PRODUCTS
AND
GOODS
(TERYTORIAL
STRUCTURE)		 Six
months
ended
at
June
30,
2019
(not
audited)		 Six
months
ended
at
June
30,
2018
(not
audited)
a)
country		 165 255
b)
export		 0 0
Net
revenues
from
sale
of
products
and
goods,
total		 165 255

31. Costs by type

COSTS
BY
TYPE		 Six
months
ended
at
June
30,
2019
(not
audited)		 Six
months
ended
at
June
30,
2018
(not
audited)
a)
depreciation		 0 26
b)
material
and
energy
consumption		 3 3
c)
external
services		 25 41
d)
taxes
and
fees		 6 7
e)
remuneration		 0 23
f)
social
security
and
other
benefits		 0 3
g)
other
costs
by
type		 2
Costs
by
type,
total		 34 105
Change
in
inventories,
products
and
accruals		 -3
General
and
administrative
expenses
(negative
value)		 26 74
Selling
costs
(negative
value)		 0 0
Manufacturing
cost
of
products
sold		 8 28

32. Other operating income

OTHER
OPERATING
INCOME		 Six
months
ended
at
June
30,
2019
(not
audited)		 Six
months
ended
at
June
30,
2018
(not
audited)
a)
due
to
released
reserves		 0 0
b)
profit
on
the
sale
of
non-financial
assets		 0 0
c)
other,
including:		 192 6
-
compensation		 0
-
revenues
from
re-invoices		 2
-
reversal
of
write-offs
for
receivables		 2
-
other		 192 2
Other
operating
income,
total		 192 6

33. Other operating costs

OTHER
OPERATING
COSTS		 Six
months
ended
at
June
30,
2019
(not
audited)		 Six
months
ended
at
June
30,
2018
(not
audited)
a)
due
to
reserves
created		 0
b)
revaluation
of
non-financial
assets		 190 212
c)
revaluation
of
loan
granted		 218
d)
other,
including		 4
-
re-invoicing
costs		 0
-
other		 4
Other
operating
costs,
total		 190 434

34. Other financial revenues

OTHER
FINANCIAL
REVENUES		 Six
months
ended
at
June
30,
2019
(not
audited)		 Six
months
ended
at
June
30,
2018
(not
audited)
a)
foreign
exchange
profits		 2
b)
Profit
on
the
sale
of
financial
assets		 47 0
c)
other,
including		 0
-
remuneration
for
shares
loaned		 0
Other
financial
revenues,
total		 47 2
EXPENDITURE
DUE
TO
INVESTMENT
REVALUATION		 Six
months
ended
at
June
30,
2019
(not
audited)		 Six
months
ended
at
June
30,
2018
(not
audited)
a)
financial
instruments
valuation		 0 0
b)
write-off
reversal
of
long-term
financial
assets		 0 0
Revenues
from
revaluation
of
investments,
total		 0 0

35. Financial costs due to interest

FINANCIAL
COSTS
DUE
TO
INTEREST		 Six
months
ended
at
June
30,
2019
(not
audited)		 Six
months
ended
at
June
30,
2018
(not
audited)
a)
on
loans
and
credits		 0 0
b)
other
interest		 0 0
Financial
costs
due
to
interest,
total		 0 0
OTHER
FINANCIAL
COSTS		 Six
months
ended
at
June
30,
2019
(not
audited)		 Six
months
ended
at
June
30,
2018
(not
audited)
a)
loss
on
the
sale
of
financial
assets		 0 0
b)
share
revaluation		 0 275
c)
other		 1
Other
financial
costs,
total		 0 276

36. Activity during discontinuation

Does not apply.

37. Merging of economic entities and acquisition of minority shares.

Merging of the entities did not occur in the period covered by the report.

38. Loss of control over subsidiaries and long-term investments

During the six months period of 2019, they did not occur.

39. Investment liabilities

As atJune 30, 2019, the Company has no investment liabilities.

40. Information on dividend paid (or declared), in total and per share, divided into ordinary and preference shares.

During the sixmonths of 2019, this event did not occur.

41. Information on the issue, redemption and repayment of non-equity and equity securities.

During the six months of 2019, these events did not occur.

42. Information about changes at the way (method) of defining fair value of measured financial instruments.

In the period covered by the report, change a way of defining fair value of measured financial instrument did not occur.

43. Indication an important judicial proceeding applying to liabilities or Issuer's its subsidiary liability, with indication subject of the proceeding, amount in controversy, date of initiation of the proceedings, parties to the proceedings and positions of Issuer

As at 30/06/2019 the Company was not the party ofany new, important proceedings, apart from those indicated in the report for 2018. As at the balance sheet date and as atthe date of publication of this report the Company is a party of the following juidical proceedings:

Administrative procedure conducted by Polish Financial Supervision Authority against FON SE regarding imposition the financial fine on FON SE based on article 97(1) point 2 of 29/07/2005 on Public

Offering and terms of introduction to organized trading venue and on public companies, towards breaching article no. 69 (1) point 1, with relation to the article no. 87 (5) point 1 of an act of Offer in relation to purchase of 01/01/2012, shares of public Company Zakłady mięsne Herman S.A. (current Investment Friends Capital SE with registered office in Płock). After getting above-mentioned decision on 14/06/2017, the Issuer applied for reconsideration and repealing the decision in its entirety. As at 29/05/2018 Polish Financial Supervision Authority took a decision of repealing in its entirety and again imposed alower fine in amount PLN 90 thousand. In relation to again imposition afine, the Issueron 03/07/2018 filed the complaint for the Polish Financial Supervision Authority's decision to the Provincial Administrative Court. On 08/01/2019 Provincial Administrative Court passed a judgement, which dismiss the Company's complaint and as a resulton 29/03/2019 the Company appealed against sentence to Supreme Administrative Court. The case is during the judicial proceeding.

The case ofFON SE complaint on 25/05/2016 directed to Provincial Administrative Court in Warsaw on 25/05/2016 for the Tax Chamber Director' statement of 21/04/2016 signature 1401-SW- 5.5010.33.2016.3.HD, upholding the statement of Head of tax office in Płock of 25/01/2016 signature 1419-RP.5010.607.2016, determining the method of credit the payment of PLN 44.962,00 towards Corporate tax arrears from 2012. On 14/07/2017 Provincial Administrative Court delivered unprofitable for the Issuer judgement. Therefore, the Company appealed against sentence to the Supreme Administrative Court in Warsaw and is waiting for setting the date and place of the trial. To the knowledge of the Management Board, the result of the proceeding is difficult to assess.

  • The case of appealing against decision of the Poznań President of 22/08/2016 regarding determining property tax liability for the period since September of 2015 to December 2015 amounting to PLN 198.091,00 directed on 26/09/2016 to Local Government Board of Appeals in Poznań with mediation of City of Poznań President. Decision of Local Government Board of Appeals was not advantageous, so the Issuer decided about directing the case to the judicial proceeding, submitting an application to Provincial Administrative Court in Poznań. On 27/10/2017 Provincial Administrative Court dismissed the complaint.After getting the explanation, Issuer appealed against above-mentioned sentence to the Supreme Administrative Court in Warsaw. The case is during course of proceeding, and its conclusion and result are difficult to assess.
    • 44. Information about changes in economic situation and in conditions of conducting a business, which have significant influence on fair value of financialassets and financial liabilities of the Company.

In the period covered by the report, the event did not occur.

45. Information on non-payment credits or loan, or breaching important decisions of credit or loan agreement, in reference to which any remedial actions were not taken until the end of the reporting period

In the period covered by the report, the Company did not breach any important decisions of credit or loan agreement, in reference to which any remedial actions were not taken.

46. Transactions with related entities in PLN thous.

AT
RELATED
DED
EN
D
PERIO
WITH
30/06/2019
NS
THE
NSACTIO
FOR
ENTITIES
TRA		 to
materials
entities
and
goods
related
products,
Sale		 related
incomes
from
financial
interests
other
from
and
Incomes
entities		 parties
related
from
Purchases		 related
costs.
financial
from
interests
other
and
the
of
entities
Costs		 to
period
and
deliveries
the
entities
of
end
for
related
the
Receivables
for
services		 the
(loans
of
end
entities
the
for
related
also)
receivables
from
period
Other		 services
related
to
and
period
deliveries
entities.
the
of
for
end
Liabilities
the
for		 liabilities
other
parties
and
related
loans
for
to
Liabilities
Patro
Inwestycje
Sp.
z
o.o.		 36 528 6
ATLANTIS
SE		 1
Refus
sp.
z
o.o.
w
likwidacji
Patro
Invest
Sp.
Z
o.o.		 6
Investment
Friends
SE
Investment
Friends
CapitalSE
Elkop
S.A.		 574 2 20
003
Fon
Zarządzanie
Nieruchomościami
sp.
z
o.o.
Nowy
Wiatr
Sp.
z
o.o.
Patro
Invest
OU		 2
469		 2
468
AT
RELATED
DED
EN
D
WITH
PERIO
31/12/2018
NS
THE
NSACTIO
FOR
ENTITIES
TRA		 to
materials
entities
and
goods
related
products,
Sale		 related
incomes
from
financial
interests
other
from
and
Incomes
entities		 parties
related
from
Purchases		 related
costs.
financial
from
interests
other
and
the
entities
of
Costs		 to
period
and
deliveries
the
entities
of
end
for
related
the
Receivables
for
services		 the
(loans
of
end
entities
the
for
related
also)
receivables
from
period
Other		 services
related
to
and
period
deliveries
entities.
the
of
for
end
Liabilities
the
for		 liabilities
other
parties
and
related
loans
for
to
Liabilities
Patro
Inwestycje
Sp.
z
o.o.		 6 6
ATLANTIS
S.A.		 2 1
Refus
sp.
z
o.o.
w
likwidacji		 1
Patro
Invest
Sp.
Z
o.o.		 4 500
Investment
Friends
SE		 11 9
Investment
Friends
CapitalSE
Elkop
S.A.		 81 9
Fon
Zarządzanie
Nieruchomościami
sp.
z
o.o.		 130 16 19
720
Patro
Invest
OU		 300
Nowy
Wiatr
sp.z
o.o.		 4
667

/in EUR thous./

Relations between members of Issuer's authorities

Entities related byshares (shareholders of the Issuer):

Patro Invest OÜ – direct significant shareholder Mr. Damian Patrowicz – indirect significant shareholder

Relations between Members of Issuer's authorities

Between Members of executive organs and supervising organs of Issuer, following relations took place during the reporting period:

Management Board:

Damian Patrowicz – has performed the function of the Chairman of the Management Board of the Issuer since 05.07.2018 is also the Chairman of the Management Board of INVESTMENT FRIENDS CAPITAL SE, ATLANTIS SE, Patro Invest OÜ and Dampain Sp. zo.o. Mr. Damian Patrowicz is the Member of the Supervisory Boards of: DAMF Inwestycje S.A. and Elkop SE. Mr. Damian Patrowicz is aslo the shareholder of FON Zarządzanie Nieruchomościami Sp. z o.o., Patro Invest Sp. z o.o. and Patro Invest OÜ. Mr. Damian Patrowicz is also a Limited Partner of Damar Patro UÜ and Nova Gielda UÜ.

Supervisory Board:

  1. Chairman of the Supervisory Board Wojciech Hetkowski - is the Member of the Supervisory Boards of: Atlantis SE, Elkop SE, Investment Friends SE, INVESTMENT FRIENDS CAPITAL SE, Damf Inwetycje S.A.

  2. Member of the Supervisory Board Jacek Koralewski - is the Chairman of the Management Board: Elkop SE and a Member of the Supervisory Board of: Atlantis SE, Investment Friends SE, Damf Inwestycje S.A., INVESTMENT FRIENDS CAPITAL SE.

  3. Member of the Supervisory Board Małgorzata Patrowicz - is the Chairman of the Management Board of: IFEA Sp. z o.o., Patro Invest Sp. z o.o a Member of the Supervisory Board of: Atlantis SE, Elkop S.A, INVESTMENT FRIENDS CAPITAL SE, Damf Inwestycje S.A., Investment Friends SE.

  4. Member of the Supervisory Board Martyna Patrowicz - is a Member of the Supervisory Board of: Atlantis SE, Elkop SE, INVESTMENT FRIENDS CAPITAL SE, Damf Inwestycje S.A., Investment Friends SE.

Remuneration of Management Board and Supervisory Board

(in EUR thous.)

30.06.2019 30.06.2018
Management
Board		 0 0
Supervisory
Board		 0 1,65

Supervisory Board 01.01.2019 – 30.06.2019

1 Hetkowski
Wojciech		 0
2 Patrowicz
Małgorzata		 0
3 Patrowicz
Damian		 0
4 Koralewski
Jacek		 0
5 Patrowicz
Martyna		 0

Supervisory Board 01.01.2018 – 30.06.2018

1 Hetkowski
Wojciech		 0,47
tys.
EUR
2 Patrowicz
Małgorzata		 0,47
tys.
EUR
3 Patrowicz
Damian		 0
tys.
EUR
4 Koralewski
Jacek		 0,23
tys.
EUR
5 Patrowicz
Marianna		 0,23
tys.
EUR

Members of Management and Supervisory Board of Issuer did not get the remuneration advance, guarantees and warranties.

47. Information on concluding by the Issueror its subsidiary of one or more transactions with related entities, if separately or jointly are significant and if they were concluded on other than market terms.

In the period covered by the report, the Issuer did not conclude any significant transactions with related entities on the terms than market terms.

48. Additional explanations to the income statement

In the period covered by this condensed interim financial statement the Company obtained the profit in the amount of EUR 180 thous.

49. Exchange rates used for conversion of selected financial data.

Selected financial data presented in the financial statement were converted into EURO in the following way:

  • Balance sheet items as at30/06/2018 and as at30/06/2019 are converted according to the average exchange rate announced by the National Bank of Poland effective as atthe balance sheet date:
    • on June 28, 2019 1 EUR = 4,2520
    • on June 29, 2018 1EUR = 4,3616
  • Balance sheet items as at 31/12/2018 are converted according to the exchange rate announced by the European Central Bank effective as at the balance sheet date:
    • on December 31, 2018 1 EUR = 4,3014
  • Items of the income statement and cash flow statement asat 30/06/2018 and as at 30/06/2019 are converted according to the exchange rate being an arithmetic average of average exchange rates announced by the National Bank of Poland effective on the last day of each month in the reporting period:
    • in the period since January 1, 2019 till June 30, 2019 1 EUR = 4,2880
    • in the period since January 1, 2018 till June 30, 2018 1 EUR = 4,2395
  • Items of cash flow statement as at31/12/2018 are converted according to the exchange rate being an arithmetic average of average exchange rates announced by the European Central Bank effective on the last day of each month in the reporting period:
    • In the period since January 1, 2018 till December 31, 2018 1 EUR = 4,2335

50. Events after the balance sheet date

Any significant events after the balance sheet date are described in the Comment of the Management Board.

51. There are not any significant events or disclosures which would significantly change the view of the entity presented in the financial statement.

Tallinn, October 25, 2019

Signatures of all Members of the Management Board

/-/ Damian Patrowicz Chairman of the Management Board Name and Surname position/function

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