Selected financial data

Orange Polska Group Selected financial information for the year ended 31 December 2018

Translation of the financial statements originally issued in Polish As published on 20 February 2019

The full report on consolidated full year 2018 results is available on our website.

Consolidated Income Statement

(in PLN millions, except for earnings/loss per share)	12 months ended
(in PLN millions, except for earnings/loss per share)	Note	31 December 2018 IFRS 15 basis	31 December 2017 IAS 18 basis (see Note 2.2)
Revenue	5	11,101	11,381
External purchases	6.1	(6,449)	(6,416)
Labour expense	6.2	(1,582)	(1,690)
Other operating expense	6.3	(472)	(473)
Other operating income	6.3	253	218
Impairment of receivables and contract assets	6.3,16	(162)	(86)
Gains on disposal of assets	7	192	81
Employment termination expense	13	5	(208)
Depreciation and amortisation	10,11	(2,544)	(2,572)
(Impairment)/reversal of impairment of fixed assets	8	3	(6)
Operating income		345	229
Interest income	16	39	32
Interest expense and other financial charges	16	(261)	(279)
Discounting expense	16	(83)	(57)
Finance costs, net		(305)	(304)
Income tax	24.1	(30)	15
Consolidated net income/(loss)		10	(60)
Net income/(loss) attributable to owners of Orange Polska S.A.		10	(60)
Net income/(loss) attributable to non-controlling interests		-	-
Earnings/(loss) per share (in PLN)	31.4	0.01	(0.05)
Weighted average number of shares (in millions)	31.4	1,312	1,312

Consolidated Statement of Comprehensive Income

(in PLN millions)	12 months ended
(in PLN millions)	Note	31 December 2018 IFRS 15 basis	31 December 2017 IAS 18 basis
Consolidated net income/(loss)		10	(60)
Items that will not be reclassified to profit or loss
Actuarial losses on post-employment benefits	15	(4)	(3)
Income tax relating to items not to be reclassified		1	1
Items that may be reclassified subsequently to profit or loss
Losses on cash flow hedges	21	(13)	(11)
Income tax relating to items that may be reclassified		3	2
Other comprehensive loss, net of tax		(13)	(11)
Total comprehensive loss		(3)	(71)
Total comprehensive loss attributable to owners of Orange Polska S.A.		(3)	(71)
Total comprehensive loss attributable to non-controlling interests		-	-

Consolidated Statement of Financial Position

(in PLN millions)	Note	31 December 2018 IFRS 15 basis	31 December 2017 IAS 18 basis
ASSETS
Goodwill	9	2,147	2,147
Other intangible assets	10	4,871	5,256
Property, plant and equipment	11	10,738	10,666
Trade receivables	12.1	552	532
Contract assets	12.2	27	-
Contract costs	12.3	56	-
Derivatives	21	48	37
Other assets		53	72
Deferred tax assets	24.2	834	950
Total non-current assets		19,326	19,660
Inventories		240	217
Trade receivables	12.1	2,371	2,266
Contract assets	12.2	138	-
Contract costs	12.3	297	-
Derivatives	21	52	-
Other assets	7	214	78
Prepaid expenses		46	66
Cash and cash equivalents	20	611	646
Total current assets		3,969	3,273
TOTAL ASSETS		23,295	22,933

Consolidated Statement of Changes In Equity

(in PLN millions)	Share capital	Share premium	Other reserves			Retained earnings	Equity attributable to owners of OPL S.A.	Non-controlling interests	Total equity
(in PLN millions)	Share capital	Share premium	Cash flow hedge reserve	Actuarial losses on post-employment benefits	Deferred tax	Retained earnings	Equity attributable to owners of OPL S.A.	Non-controlling interests	Total equity
Balance at 1 January 2018	3,937	832	(2)	(47)	9	5,207	9,936	2	9,938
The effect of adoption of IFRS 15 (see Note 2.1)	-	-	-	-	-	583	583	-	583
The effect of adoption of IFRS 9 (see Note 2.2)	-	-	-	-	-	(11)	(11)	-	(11)
Balance at 1 January 2018 after adoption of IFRS 15 and IFRS 9	3,937	832	(2)	(47)	9	5,779	10,508	2	10,510
Total comprehensive loss for the 12 months ended 31 December 2018	-	-	(13)	(4)	4	10	(3)	-	(3)
Share-based payments (see Note 25.3)	-	-	-	-	-	1	1	-	1
Transfer to inventories	-	-	(5)	-	-	-	(5)	-	(5)
Balance at 31 December 2018	3,937	832	(20)	(51)	13	5,790	10,501	2	10,503
Balance at 1 January 2017	3,937	832	9	(44)	6	5,267	10,007	2	10,009
Total comprehensive loss for the 12 months ended 31 December 2017	-	-	(11)	(3)	3	(60)	(71)	-	(71)
Balance at 31 December 2017	3,937	832	(2)	(47)	9	5,207	9,936	2	9,938

Consolidated Statement of Cash Flows

(in PLN millions)	12 months ended
(in PLN millions)	Note	31 December 2018 IFRS 15 basis	31 December 2017 IAS 18 basis
OPERATING ACTIVITIES
Consolidated net income/(loss)		10	(60)
Adjustments to reconcile net income/loss to cash from operating activities
Gains on disposal of assets	7	(192)	(81)
Depreciation and amortisation	10,11	2,544	2,572
Impairment/(reversal of impairment) of fixed assets	8	(3)	6
Finance costs, net		305	304
Income tax	24.1	30	(15)
Change in provisions and allowances	28.b	(685)	111
Operational foreign exchange and derivatives (gains)/losses, net		(3)	8
Change in working capital
Increase in inventories, gross		(25)	(53)
Increase in trade receivables, gross	12.1	(225)	(334)
Decrease in contract assets, gross	12.2	166	-
Decrease in contract costs	12.3	51	-
Decrease in trade payables		(1)	(106)
Increase in contract liabilities	12.4	232	-
Increase in prepaid expenses and other receivables		(34)	(5)
Increase/(decrease) in deferred income and other payables	14.3	(22)	62
Interest received		39	32
Interest paid and interest rate effect paid on derivatives, net		(363)	(363)
Exchange rate and other effect paid on derivatives, net		(5)	(6)
Income tax paid		(7)	(8)
Net cash provided by operating activities		1,812	2,064
INVESTING ACTIVITIES
Purchases of property, plant and equipment and intangible assets	10,11	(2,282)	(1,933)
Increase/(decrease) in amounts due to fixed assets suppliers		116	(126)
Investment grants received	14.2	5	297
Investment grants paid to fixed assets suppliers	14.2	(64)	(1)
Exchange rate effect received/(paid) on derivatives economically hedging capital expenditures, net		5	(7)
Proceeds from sale of property, plant and equipment and intangible assets		156	113
Cash paid for subsidiaries, net of cash acquired	4	(2)	(31)
Receipts from other financial instruments		-	1
Net cash used in investing activities		(2,066)	(1,687)
FINANCING ACTIVITIES
Repayment of long-term debt	19	(44)	(31)
Increase in revolving credit line and short-term debt	19	263	39
Exchange rate effect paid on derivatives hedging debt, net	19	-	(1)
Net cash provided by financing activities		219	7
Net change in cash and cash equivalents		(35)	384
Cash and cash equivalents at the beginning of the period	20	646	262
Cash and cash equivalents at the end of the period	20	611	646