KGHM Polska Miedź S.A.

Quarterly Report • Oct 27, 2017

Appendix no. 1 to the report no. 28/2017 Results of correction of the judgment on the functional currency of Future 1 Sp. z o.o. as at 31 December 2016 CONSOLIDATED STATEMENT OF FINANCIAL POSITION

	Published data	Restated data	Difference
	2016	2016	2016
ASSETS
Mining and metallurgical property, plant and equipment	15 217	15 217	-
Mining and metallurgical intangible assets	2 474	2 474	-
Mining and metallurgical property, plant and equipment and intangible assets	17 691	17 691	-
Other property, plant and equipment	2 591	2 591	-
Other intangible assets	208	208	-
Other property, plant and equipment and intangible assets	2 799	2 799	-
Joint ventures accounted for using the equity method	27	27	-
Loans granted to joint ventures	4 313	4 313	-
Total involvement in joint ventures	4 340	4 340	-
Derivatives	237	237	-
Other financial instruments measured at fair value	577	577	-
Other financial assets	930	930	-
Financial instruments, total	1 744	1 744	-
Deferred tax assets	511	511	-
Other non-financial assets	117	117	-
Non-current assets	27 202	27 202	-
Inventories	3 497	3 497	-
Trade receivables	1 292	1 292	-
Tax assets	267	267	-
Derivatives	72	72	-
Other assets	252	252	-
Cash and cash equivalents	860	860	-
Current assets	6 240	6 240	-
	33 442	33 442	-
EQUITY AND LIABILITIES
Share capital	2 000	2 000	-
Other reserves from measurement of financial instruments	( 183)	( 183)	-
Accumulated other comprehensive income	855	2 216	1 361
Retained earnings	13 100	11 739	(1 361)
Equity attributable to shareholders of the Parent Entity	15 772	15 772	-
Equity attributable to non-controlling interest	139	139	-
Equity	15 911	15 911	-
Borrowings	6 539	6 539	-
Derivatives	256	256	-
Employee benefits liabilities	1 860	1 860	-
Provisions for decommissioning costs of mines and other facilities	1 487	1 487	-
Deferred tax liabilities	563	563	-
Other liabilities	960	960	-
Non-current liabilities	11 665	11 665	-
Borrowings	1 559	1 559	-
Derivatives	215	215	-
Trade payables	1 433	1 433	-
Employee benefits liabilities	787	787	-
Tax liabilities	786	786	-
Other liabilities	1 086	1 086	-
Current liabilities	5 866	5 866	-
Non-current and current liabilities	17 531	17 531	-
	33 442	33 442	-

Results of correction of the judgment on the functional currency of Future 1 Sp. z o.o. as at 31 March 2017 INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS

	Published data 1st quarter of 2017	Restated data 1st quarter of 2017	Difference 1st quarter of 2017
Sales revenue	4 911	4 911	-
Cost of sales	(3 548)	(3 548)	-
Gross profit	1 363	1 363	-
Selling costs and administrative expenses	( 289)	( 289)	-
Profit on sales	1 074	1 074	-
Share of losses of joint ventures accounted for using the equity method	-	-	-
Interest income on loans granted to joint ventures	82	82	-
Profit or loss on involvement in joint ventures	82	82	-
Other operating income and (costs)	( 738)	( 426)	312
Finance income and (costs)	301	301	-
Profit before income tax	719	1 031	312
Income tax expense	( 321)	( 321)	-
PROFIT FOR THE PERIOD	398	710	312
Profit for the period attributable to:
Shareholders of the Parent Entity	398	710	312
Non-controlling interest	-	-	-
Weighted average number of ordinary shares (million)	200	200	-
Basic/diluted earnings per share (in PLN)	1.99	3.55	1.56

INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	Published data 1st quarter of 2017	Restated data 1st quarter of 2017	Difference 1st quarter of 2017
Profit for the period	398	710	312
Measurement of hedging instruments net of the tax effect	122	122	-
Measurement of available-for-sale financial assets net of the tax effect	87	87	-
Exchange differences from translation of foreign operations statements	419	107	( 312)
Other comprehensive income which will be reclassified to profit or loss	628	316	(312)
Actuarial losses net of the tax effect	( 166)	( 166)	-
Other comprehensive income, which will not be reclassified to profit or loss	( 166)	( 166)	-
Total other comprehensive net income	462	150	(312)
TOTAL COMPREHENSIVE INCOME	860	860	-
Total comprehensive income attributable to:
Shareholders of the Parent Entity	863	863	-
Non-controlling interest	( 3)	( 3)	-

INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS

	Published data 1st quarter of 2017	Restated data 1st quarter of 2017	Difference 1st quarter of 2017
Cash flow from operating activities
Profit before income tax	719	1 031	312
Depreciation/amortisation recognised in profit or loss	371	371	-
Share of losses of joint ventures accounted for using the equity method	-	-	-
Interest on loans granted to joint ventures	( 82)	( 82)	-
Interest and other costs of borrowings	44	44	-
Other adjustments to profit before income tax	319	7	(312)
Exclusions of income and costs, total	652	340	(312)
Income tax paid	( 416)	( 416)	-
Changes in working capital	( 497)	( 497)	-
Net cash generated from operating activities	458	458	-
Cash flow from investing activities
Expenditures on mining and metallurgical assets	( 562)	( 562)	-
Expenditures on other property, plant and equipment and intangible assets	( 53)	( 53)	-
Other expenses	( 44)	( 44)	-
Total expenses	( 659)	( 659)	-
Proceeds	9	9	-
Net cash used in investing activities	( 650)	( 650)	-
Cash flow from financing activities
Proceeds from borrowings	762	762	-
Repayments of borrowings	( 746)	( 746)	-
Interest and other costs of borrowings	( 42)	( 42)	-
Total expenses	( 788)	( 788)	-
Net cash used in financing activities	( 26)	( 26)	-
TOTAL NET CASH FLOW	( 218)	( 218)	-
Cash and cash equivalents at beginning of the period	860	860	-
Exchange gains/(losses) on cash and cash equivalents	( 18)	( 18)	-
Cash and cash equivalents at end of the period	624	624	-

INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION

	Published data	Restated data	Difference
	1st quarter of	1st quarter of	1st quarter of
ASSETS	2017	2017	2017
Mining and metallurgical property, plant and equipment	15 301	15 301	-
Mining and metallurgical intangible assets	2 395	2 395	-
Mining and metallurgical property, plant and equipment and intangible			-
assets	17 696	17 696
Other property, plant and equipment	2 543	2 543	--
Other intangible assets	222	222	-
Other property, plant and equipment and intangible assets	2 765	2 765	-
Joint ventures accounted for using the equity method	27	27	-
Loans granted to joint ventures	4 152	4 152	-
Total involvement in joint ventures	4 179	4 179	-
Derivatives	162	162	-
Other financial instruments measured at fair value	677	677	-
Other financial assets	929	929	-
Financial instruments, total	1 768	1 768	-
Deferred tax assets	456	456	-
Other non-financial assets	117	117	-
Non-current assets	26 981	26 981	-
Inventories	4 154	4 154	-
Trade receivables	1 206	1 206	-
Tax assets	233	233	-
Derivatives	78	78	-
Other assets	353	353	-
Cash and cash equivalents	624	624	-
Current assets	6 648	6 648	-
	33 629	33 629	-
EQUITY AND LIABILITIES
Share capital	2 000	2 000	-
Other reserves from measurement of financial instruments	26	26	-
Accumulated other comprehensive income	1 111	2 160	1 049
Retained earnings	13 498	12 449	(1 049)
Equity attributable to shareholders of the Parent Entity	16 635	16 635	-
Equity attributable to non-controlling interest	136	136	-
Equity	16 771	16 771	-
Borrowings	5 587	5 587	-
Derivatives	153	153	-
Employee benefits liabilities	2 061	2 061	-
Provisions for decommissioning costs of mines and other technological facilities	1 502	1 502	-
Deferred tax liabilities	516	516	-
Other liabilities	906	906	-
Non-current liabilities	10 725	10 725	-
Borrowings	2 087	2 087	-
Derivatives	73	73	-
			-
Trade payables	1 354	1 354	-
Employee benefits liabilities	917	917	-
Tax liabilities	595	595	-
Other liabilities	1 107	1 107	-
Current liabilities	6 133	6 133
Non-current and current liabilities	16 858	16 858	-
	33 629	33 629	-

INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

			Equity attributable to shareholders of the Parent Entity
Published data	Share capital	Other reserves from measurement of financial instruments	Accumulated other comprehensive income	Retained earnings	Total	Equity attributable to non controlling interest	Total equity
As at 1 January 2017	2 000	( 183)	855	13 100	15 772	139	15 911
Dividend	-	-	-	-	-	-	-
Transactions with non controlling interest	-	-	-	-	-	-	-
Transactions with owners	-	-	-	-	-	-	-
Profit for the period	-	-	-	398	398	-	398
Other comprehensive income	-	209	256	-	465	( 3)	462
Total comprehensive income	-	209	256	398	863	( 3)	860
As at 31 March 2017	2 000	26	1 111	13 498	16 635	136	16 771

	Equity attributable to shareholders of the Parent Entity
Restated data	Share capital	Other reserves from measurement of financial instruments	Accumulated other comprehensive income	Retained earnings	Total	Equity attributable to non controlling interest	Total equity
As at 1 January 2017	2 000	( 183)	2 216	11 739	15 772	139	15 911
Dividend	-	-	-	-	-	-	-
Transactions with non controlling interest	-	-	-	-	-	-	-
Transactions with owners	-	-	-	-	-	-	-
Profit for the period	-	-	-	710	710	-	710
Other comprehensive income	-	209	( 56)	-	153	( 3)	150
Total comprehensive income	-	209	( 56)	710	863	( 3)	860
As at 31 March 2017	2 000	26	2 160	12 449	16 635	136	16 771

Equity attributable to shareholders of the Parent Entity

Difference	Share capital	Other reserves from measurement of financial instruments	Accumulated other comprehensive income	Retained earnings	Total	Equity attributable to non controlling interest	Total equity
As at 1 January 2017	-	-	1 361	(1 361)	-	-	-
Dividend	-	-	-	-	-	-	-
Transactions with non controlling interest	-	-	-	-	-	-	-
Transactions with owners	-	-	-	-	-	-	-
Profit for the period	-	-	-	312	312	-	312
Other comprehensive income	-	-	( 312)	-	( 312)	-	( 312)
Total comprehensive income	-	-	( 312)	312	-	-	-
As at 31 March 2017	-	-	1 049	(1 049)	-	-	-

Results of correction of the judgment on the functional currency of Future 1 Sp. z o.o. as at 30 June 2017 HALF-YEAR CONSOLIDATED STATEMENT OF PROFIT OR LOSS

	Published data 1st half of 2017	Restated data 1st half of 2017	Difference 1st half of 2017
Sales revenue	9 713	9 713	-
Cost of sales	(7 215)	(7 215)	-
Gross profit	2 498	2 498	-
Selling costs and administrative expenses	( 621)	( 621)	-
Profit on sales	1 877	1 877	-
Share of losses of joint ventures accounted for using the equity method	( 215)	(215)	-
Interest income on loans granted to joint ventures	161	161	-
Profit or loss on involvement in joint ventures	( 54)	( 54)	-
Other operating income and (costs)	(1 506)	( 858)	648
Finance income and (costs)	684	684	-
Profit before income tax	1 001	1 649	( 648)
Income tax expense	( 507)	( 595)	( 88)
PROFIT FOR THE PERIOD	494	1 054	560
Profit for the period attributable to:
Shareholders of the Parent Entity	491	1 051	560
Non-controlling interest	3	3	-
Weighted average number of ordinary shares (million)	200	200	-
Basic/diluted earnings per share (in PLN)	2.46	5.26	2.80

HALF-YEAR CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	Published data 1st half of 2017	Restated data 1st half of 2017	Difference 1st half of 2017
Profit for the period	494	1 054	560
Measurement of hedging instruments net of the tax effect	173	173	-
Measurement of available-for-sale financial assets net of the tax effect	110	110	-
Exchange differences from translation of foreign operations statements	845	197	( 648)
Other comprehensive income which will be reclassified to profit or loss	1 128	480	( 648)
Actuarial losses net of the tax effect	( 147)	( 147)	-
Other comprehensive income, which will not be reclassified to profit or loss	( 147)	( 147)	-
Total other comprehensive net income	981	333	( 648)
TOTAL COMPREHENSIVE INCOME	1 475	1 387	( 88)
Total comprehensive income attributable to:
Shareholders of the Parent Entity	1 478	1 390	( 88)
Non-controlling interest	( 3)	( 3)	-

HALF-YEAR CONSOLIDATED STATEMENT OF CASH FLOWS

	Published data 1st half of 2017	Restated data 1st half of 2017	Difference 1st half of 2017
Cash flow from operating activities
Profit before income tax	1 001	1 649	648
Depreciation/amortisation recognised in profit or loss	772	772	-
Share of losses of joint ventures accounted for using the equity method	215	215	-
Interest on loans granted to joint ventures	( 161)	( 161)	-
Interest and other costs of borrowings	78	78	-
Impairment losses on non-current assets	1	1	-
Exchange differences, of which:	803	173	( 630)
from investment activities and cash	1 618	988	( 630)
from financing activities	( 815)	( 815)	-
Change in other receivables and liabilities	( 203)	( 203)	-
Change in assets/liabilities due to derivatives	( 86)	( 86)	-
Other adjustments to profit before income tax	12	( 6)	( 18)
Exclusions of income and costs, total	1 431	783	( 648)
Income tax paid	( 703)	( 703)	-
Changes in working capital	( 537)	( 537)	-
Net cash generated from operating activities	1 192	1 192	-
Cash flow from investing activities
Expenditures on mining and metallurgical assets	(1 111)	(1 111)	-
Expenditures on other property, plant and equipment and intangible assets	( 97)	( 97)	-
Acquisition of newly-issued shares of a joint venture	( 206)	( 206)	-
Other expenses	( 55)	( 55)	-
Total expenses	(1 469)	(1 469)	-
Proceeds	22	22	-
Net cash used in investing activities	(1 447)	(1 447)	-
Cash flow from financing activities
Proceeds from borrowings	1 447	1 447	-
Other proceeds	2	2	-
Total proceeds	1 449	1 449	-
Repayments of borrowings	(1 532)	(1 532)	-
Interest paid and other costs of borrowings	( 81)	( 81)	-
Other payments	-	-	-
Total expenses	(1 613)	(1 613)	-
Net cash used in financing activities	( 164)	( 164)	-
TOTAL NET CASH FLOW	( 419)	( 419)	-
Cash and cash equivalents at beginning of the period	860	860	-
Exchange gains/(losses) on cash and cash equivalents	5	5	-
Cash and cash equivalents at end of the period	446	446	-

HALF-YEAR CONSOLIDATED STATEMENT OF FINANCIAL POSITION

	Published data	Restated data	Difference
ASSETS	1st half of 2017	1st half of 2017	1st half of 2017
Mining and metallurgical property, plant and equipment	15 359	15 359	-
Mining and metallurgical intangible assets	2 309	2 309	-
Mining and metallurgical property, plant and equipment and intangible assets	17 668	17 668	-
Other property, plant and equipment	2 599	2 599	-
Other intangible assets	202	202	-
Other property, plant and equipment and intangible assets	2 801	2 801	-
Joint ventures accounted for using the equity method	26	26	-
Loans granted to joint ventures	3 978	3 978	-
Total involvement in joint ventures	4 004	4 004	-
Derivatives	137	137	-
Other financial instruments measured at fair value	712	712	-
Other financial assets	916	916	-
Financial instruments, total	1 765	1 765	-
Deferred tax assets	460	372	( 88)
Other non-financial assets	118	118	-
Non-current assets	26 816	26 728	( 88)
Inventories	4 512	4 512	-
Trade receivables	1 097	1 097	-
Tax assets	228	228	-
Derivatives	101	101	-
Other assets	389	389	-
Cash and cash equivalents	446	446	-
Current assets	6 773	6 773	-
	33 589	33 501	( 88)
EQUITY AND LIABILITIES
Share capital	2 000	2 000	-
Other reserves from measurement of financial instruments	100	100	-
Accumulated other comprehensive income	1 559	2 272	713
Retained earnings	13 392	12 591	( 801)
Equity attributable to shareholders of the Parent Entity	17 051	16 963	( 88)
Equity attributable to non-controlling interest	136	136	-
Equity	17 187	17 099	(88)
Borrowings	5 493	5 493	-
Derivatives	118	118	-
Employee benefits liabilities	2 071	2 071	-
Provisions for decommissioning costs of mines and other technological facilities	1 474	1 474	-
Deferred tax liabilities	540	540	-
Other liabilities	787	787	-
Non-current liabilities	10 483	10 483	-
Borrowings	1 641	1 641	-
Derivatives	35	35	-
Trade payables	1 613	1 613	-
Employee benefits liabilities	754	754	-
Tax liabilities	605	605	-
Other liabilities	1 271	1 271	-
Current liabilities	5 919	5 919	-
Non-current and current liabilities	16 402	16 402	-
	33 589	33 501	( 88)

HALF-YEAR CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Equity attributable to shareholders of the Parent Entity
Published data	Share capital	Other reserves from measurement of financial instruments	Accumulated other comprehensive income	Retained earnings	Total	Equity attributable to non controlling interest	Total equity
As at 1 January 2017	2 000	( 183)	855	13 100	15 772	139	15 911
Dividend	-	-	-	( 200)	( 200)	-	( 200)
Transactions with non controlling interest	-	-	-	1	1	-	1
Transactions with owners	-	-	-	( 199)	( 199)	-	( 199)
Profit for the period	-	-	-	491	491	3	494
Other comprehensive income	-	283	704	-	987	( 6)	981
Total comprehensive income	-	283	704	491	1 478	( 3)	1 475
As at 30 June 2017	2 000	100	1 559	13 392	17 051	136	17 187

			Equity attributable to shareholders of the Parent Entity
Restated data	Share capital	Other reserves from measurement of financial instruments	Accumulated other comprehensive income	Retained earnings	Total	Equity attributable to non controlling interest	Total equity
As at 1 January 2017	2 000	( 183)	2 216	11 739	15 772	139	15 911
Dividend	-	-	-	( 200)	( 200)	-	( 200)
Transactions with non controlling interest	-	-	-	1	1	-	1
Transactions with owners	-	-	-	( 199)	( 199)	-	( 199)
Profit for the period	-	-	-	1 051	1 051	3	1 054
Other comprehensive income	-	283	56	-	339	( 6)	333
Total comprehensive income	-	283	56	1 051	1 390	( 3)	1 387
As at 30 June 2017	2 000	100	2 272	12 591	16 963	136	17 099

Equity attributable to shareholders of the Parent Entity

Difference	Share capital	Other reserves from measurement of financial instruments	Accumulated other comprehensive income	Retained earnings	Total	Equity attributable to non controlling interest	Total equity
As at 1 January 2017	-	-	1 361	(1 361)	-	-	-
Dividend	-	-	-	-	-	-	-
Transactions with non controlling interest	-	-	-	-	-	-	-
Transactions with owners	-	-	-	-	-	-	-
Profit for the period	-	-	-	560	560	-	560
Other comprehensive income	-	-	( 648)	-	( 648)	-	( 648)
Total comprehensive income	-	-	( 648)	560	(88)	-	( 88)
As at 30 June 2017	-	-	713	( 801)	(88)	-	( 88)