financial rapo rt -...

80FINANCIAL RAPORT

Financial RapoRt

0. Selectedfinancialdata ......................................................................................................820.1. Consolidatedstatementoffinancialposition .....................................................................................840.2. Consolidatedprofitandlossandstatementofothercomprehensiveincome .............................850.3. Consolidatedstatementofcashflows ..................................................................................................860.4. Consolidatedstatementofchangesinequity .....................................................................................87

1. Generalinformation ............................................................................................................881.1 Informationontheparententity,capitalgroupandtheconsolidatedfinancialstatements ..881.2 CompositionoftheGroup ......................................................................................................................881.3 CompositionoftheBoardofDirectorsandoftheSupervisoryBoardoftheparent .................89

2. Informationonthebasisforpreparationofthe financialstatements,reportingcurrencyandapplied roundingconventions ........................................................................................................902.1 Basisforpreparationofthefinancialstatements ..............................................................................902.1 Applicationofnewstandardsorinterpretations ...............................................................................902.3 Functionalandreportingcurrencyandappliedroundingconventions ......................................912.4 On-goingconcernprinciple .....................................................................................................................91

3. Accountingprinciples ........................................................................................................923.1 Detailedprinciplesforvaluationofassets,equityandliabilitiesappliedintheGroup ............923.2 Consolidation ........................................................................................................................................... 102

4. Basicaccountingjudgmentsandbasicreasons foruncertaintiesinestimates ................................................................................1034.1 Basicreasonsforuncertaintiesofestimates ..................................................................................... 103

5. Adjustmentstopreviouslypresentedfinancialstatements .........103

81Annual raport 2014

6. EXPLANATORY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS PREPARED FOR THE PERIOD FROMJANUARY1,2014TODECEMBER31,2014 ....................................104

NOTE 1 OPERATING SEGMENTS .............................................................................................. 104

NOTE 2 INTANGIBLE ASSETS .................................................................................................... 106

NOTE 3 BUSINESS COMBINATIONS .......................................................................................... 107

NOTE 4 TANGIBLE ASSETS AND INVESTMENT PROPERTIES ...........................................114

NOTE 5 FINANCIAL ASSETS ......................................................................................................117

NOTE 6 RECEIVABLES ..................................................................................................................118

NOTE 7 INVENTORY .................................................................................................................... 121

NOTE 8 OTHER ASSETS............................................................................................................... 121

NOTE 9 FINANCIAL INSTRUMENTS ........................................................................................ 122

NOTE 10 FINANCIAL LIABILITIES .............................................................................................. 129

NOTE 11 SHARECAPITAL,TREASURYSHARES,SHAREOPTIONS .................................. 134

NOTE 12 PROVISIONS FOR EMPLOYEE BENEFITS ................................................................. 138

NOTE 13 PROVISIONS FOR OTHER LIABILITIES .................................................................... 138

NOTE 14 TRADE LIABILITIES AND OTHER OPERATING LIABILITIES ............................. 139

NOTE 15 OTHER LIABILITIES ...................................................................................................... 140

NOTE 16 INCOME TAX ................................................................................................................... 140

NOTE 17 CONTINGENT ASSETS AND CONTINGENT LIABILITIES..................................... 142

NOTE 18 NOTES TO THE PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME 142

NOTE 19 INFORMATION ON RELATED PARTIES ................................................................... 145NOTE 20 ACTUAL CAPITAL EXPENDITURES AND CAPITAL EXPENDITURES BUDGETED FOR THE PERIOD OF THE NEXT 12 MONTHS FROM THE LASTDAYOFTHEREPORTINGPERIOD,INCLUDING FOR NON-FINANCIAL FIXED ASSETS ....................................................................... 147

NOTA 21 AVERAGE HEADCOUNT IN THE GROUP BY PROFESSIONAL GROUP ............. 147

NOTE 22 RETAINED EARNINGS AND DIVIDENDS ................................................................ 147

NOTE 23 SUBSEQUENT EVENTS................................................................................................. 148

82FINANCIAL RAPORT

TABLE I SELECTED FINANCIAL DATA

IN PLN ‘000 IN EUR ‘000

KEy ITEmS FROm ThE STATEmENT OF FINANCIAL POSITION na dzień na dzień na dzień na dzień31.12.2014 31.12.2013 31.12.2014 31.12.2013

Fixed assets 520 885 413 454 122 207 99 695Currentassets 2 048 689 1 504 212 480 653 362 705Totalassets 2 569 574 1 917 666 602 861 462 400Equity 467 421 410 656 109 664 99 020Sharecapital 4 554 4 513 1 068 1 088

Long-termliabilities 170 096 74 396 39 907 17 939Short-termliabilities 1 932 057 1 432 614 453 290 345 441Totalequityandliabilities 2 569 574 1 917 666 602 861 462 400


KEy ITEmS FROm ThE CONSOLIDATED PROFIT AND LOSS AND OThER COmPREhENSIvE INCOmE

zA rok od 01.01do 31.12.2014

zA rok od 01.01do 31.12.2013

zA rok od 01.01do 31.12.2014

zA rok od 01.01do 31.12.2013

Salesrevenues 6 568 700 5 795 092 1 567 971 1 376 180Grossprofitonsales 585 605 551 855 139 786 131 051Profitonoperatingactivities 76 613 102 455 18 288 24 330Profitbeforetaxes 78 688 104 533 18 783 24 824Netprofit 93 357 85 342 22 285 20 266

Netprofitattributabletoshareholdersoftheparent 93 070 85 347 22 216 20 268


KEy ITEmS FROm ThE STATEmENT OF CASh FLOwSzA rok od 01.01

do 31.12.2014zA rok od 01.01

do 31.12.2013zA rok od 01.01

do 31.12.2014zA rok od 01.01

do 31.12.2013

Netcashfromoperatingactivities 202 556 27 696 48 351 6 577Netcashfrominvestingactivities (215 170) 17 160 (51 362) 4 075Netcashfromfinancialactivities 40 191 (57 691) 9 594 (13 700)Netincrease(decrease)incash 27 577 (12 835) 6 583 (3 048)Openingbalanceofcash 4 521 17 356 1 079 4 122

Closingbalanceofcash 32 098 4 521 7 662 1 074

83

In the periods covered by the financial statements andcomparablefinancialdataPLN/EURaverageexchangera-teswereappliedbasedonofficialratespublishedbytheNationalBankofPoland,andinparticular:

01.01-31.12.2014

01.01-31.12.2013

Averageinthereportingperiod* 4,1893 4,2110Exchangerateasofthelastdayofthereportingperiod 4,2623 4,1472Thehighestexchangerateinthereportingperiod 4,3138 4,3432Thelowestexchangerateinthereportingperiod 4,0998 4,0671

*theaverageexchangeratewascalculatedasthearithmeticalaverageoftherateseffectiveasofthelastdayofeachmonthinthegivenperiod•Differentitemsofassets,equityandliabilitiesinthestatementoffinancialpositionhavebeentranslatedbasedonrateseffectiveasofthelastdayoftheperiod.•Differentitemsoftheprofitandlossandothercomprehensiveincomeaswellasofthestatementofcashflowshavebeentransla-tedbasedonexchangeratesbeingarithmeticaveragesoftheratesprevailingonthelastdayofeachmonthinthereportingperiod.

SELECTEd FINANCIAL dATA

84FINANCIAL RAPORT

TABLE II CONSOLIDATED STATEmENT OF FINANCIAL POSITION NOTE 31.12.14 31.12.13

Property,plantandequipment 4 275 505 254 703Goodwill 3 134 134 90 201Intangibleassets 2 25 830 21 199Investmentproperties 4 19 409 7 658Financialassetsatfairvaluethroughprofitorloss 5 235 224Available-for-salefinancialassets - 105Tradeandotherreceivables 6 19 258 21 318Deferredincometaxassets 16 46 514 18 046Totalfixedassets 520 885 413 454

Sharecapital 4 554 4 513Treasuryshares (17 387) - Sharepremiumaccount(agio) 139 634 136 949Othersupplementarycapital 161 443 155 036Revaluationreserve - 1Revaluationreservefromcashflowhedges 9 (4 465) (336)Othercapitals 7 425 7 127Retainedearnings,including: 166 788 102 463 from previous years 73 718 17 116 current year earnings attributable to shareholders of the parent 93 070 85 347Equityattributabletoshareholdersoftheparent 457 992 405 753Non-controllinginterests 9 429 4 903Totalequity 11 467 421 410 656

Creditsandloans 10 43 143 85 974Otherfinancialliabilities 10 11 043 13 988Tradeliabilitiesandotheroperatingliabilities 14 1 866 131 1 322 100Currentincometaxliabilities 2 453 5 843Provisionsforliabilitiesunderemployeebenefits 12 3 822 3 526Provisionsforotherliabilities 13 3 466 341Otherliabilities 15 1 999 842Totalshort-termliabilities 1 932 057 1 432 614

Totalliabilities 2 102 153 1 507 010

Totalequityandliabilities 2 569 574 1 917 666

Creditsandloans 10 117 181 17 271Otherfinancialliabilities 10 44 232 53 292LiabilitiesunderInterestRateSwaps(IRS) 9 5 560 490Provisionsforliabilitiesunderemployeebenefits 12 570 346Provisionsforotherliabilities 13 226 - Otherliabilities 15 2 327 2 997Totallong-termliabilities 170 096 74 396

Inventory 7 1 048 179 754 795Tradeandotherreceivables 6 958 238 740 924Currentincometaxreceivables 6 051 1 329Cashandcashequivalents 9 32 098 4 521Otherassets 8 4 123 2 643Totalcurrentassets 2 048 689 1 504 212Totalassets 2 569 574 1 917 666

CURRENT ASSETS

EqUITy

LONg-TERm LIAbILITIES

ShORT-TERm LIAbILITIES

FIxED ASSETS

85

TABLE III CONSOLIDATED PROFIT AND LOSS AND OThER COmPREhENSIvE INCOmE

NOTE For ThE yEAr 2014 For ThE yEAr 2013*Salesrevenues 18 6 568 700 5 795 092Sellingcosts 18 5 983 095 5 243 237Grossprofitonsales 585 605 551 855Salesexpenses 18 331 140 283 249Overheadexpenses 18 164 114 145 648Otheroperatingrevenues 18 14 118 11 834Otheroperatingexpenses 18 27 856 32 337Profitonoperatingactivities 76 613 102 455Financialrevenues 18 19 240 18 527Financialexpenses 18 17 165 16 559Otherprofitoninvestmentactivities - 110Profitbeforetaxes 78 688 104 533Incometax 16 (14 669) 19 191Netprofit 93 357 85 342

ITEmS ThAT CAN bE TRANSFERRED TO ThE RESULT:

Cashflowhedging (5 097) (415)Incometaxontheitemsofother comprehensiveincome

969 79

Othernetcomprehensiveincome (4 128) (336)Totalcomprehensiveincome 89 229 85 006Totalcomprehensiveincomeattributable toshareholdersoftheparent

88 942 85 011

Totalcomprehensiveincomeattributable tonon-controllinginterests

287 (5)

Profitattributabletoshareholdersoftheparent 93 070 85 347Profit(loss)attributabletonon-controllinginterests 287 (5)

EARNINgS PER ShARE

Basic 20,62 18,91Diluted 18,53 16,88Weightedaveragenumberofordinaryshares 4 514 163 4 512 644Weightedaveragedilutednumberofordinaryshares 5 021 557 5 057 189


*Comparativedatawererestatedandincludetheimpactoftheadjustmentsdescribedinsection5oftheintro-ductiontothefinancialstatements.

86FINANCIAL RAPORT

TABLE IV CONSOLIDATED STATEmENT OF CASh FLOwS

OPERATINg CASh FLOwS

FOR ThE yEAR FROm JANUARy 1, 2014 TO DECEmbER 31, 2014

FOR ThE yEAR FROm JANUARy 1, 2013 TO DECEmbER 31, 2013

Grossprofitforthefinancialyear 78 688 104 533Negativegoodwill - (203)Profitonthesettlementofoptions - (4 677)Depreciationandamortisation 27 923 24 285Netinterestanddividends 5 422 5 697Profit/lossoninvestmentactivities (2 144) 88Profit/lossfromchangesinthefairvalueoffinancialassets carriedatfairvalue (26) 74Profit/Lossonsaleoffinancialassetsheldforsale - (110)Impairmentoffinancialassets 1 868 507Cashflowsfromoperatingactivitiesbeforechangesinworkingcapital 111 731 130 194

ChANgES IN wORKINg CAPITAL:Changeininventory (142 937) (84 418)Changeinreceivables (103 231) 5 539Changeinshort-termliabilities 358 931 (1 836)Changeinprovisionsandprepayments (4 751) (411)Otheradjustments 1 045 1 146Cashfromoperatingactivities 220 788 50 214Incometaxpaid (18 232) (22 518)Netcashfromoperatingactivities 202 556 27 696

CASh FLOwS FROm INvESTmENT ACTIvITIESOutflowsforpurchasesofintangibleassetsandproperty,plantandequipment (36 987) (22 713)Inflowsfromdisposalofintangibleassetsandproperty,plantandequipment 1 563 1 203Expensesfortheacquisitionoffinancialassetsheldforsale - (30)Inflowsfromsaleoffinancialassetsheldforsale 30 - Inflowsfromheld-to-maturityfinancialassets - 1 360Outflowsforpurchaseofsharesinsubsidiaries (netofcashacquired) (202 687) (816)Inflowsfromdisposalofsharesinsubsidiaries (701) - Inflowsfromgovernmentsubsidiesreceived - 629Loansgranted (7 878) (6 382)Receivedrepaymentsofloansgranted 27 986 37 949Interestreceived 3 504 5 960Netcashusedininvestmentactivities (215 170) 17 160

CASh FLOwS FROm FINANCIAL ACTIvITIESNetinflowsfromissueofshares 1 161 301Acquisitionofitsownshares (17 387) (940)Inflowsfromissueddebtsecurities 47 500 - Subsidiesreceived 534 - Inflowsfromcontractedcreditsandloans 154 212 3 037Repaymentofcreditandloans (97 421) (15 332)Repaymentoffinancialleaseliabilities (14 449) (16 706)Interestpaid (16 734) (13 610)Dividendspaid (17 225) (14 441)Netcashfromfinancialactivities 40 191 (57 691)Changeinnetcashandcashequivalents 27 577 (12 835)Openingbalanceofcashandcashequivalents 4 521 17 356Closingbalanceofcashandcashequivalents 32 098 4 521

87

TABLE V, VI CONSOLIDATED STATEmENT OF ChANgES IN ShAREhOLDERS’ EqUITy

STATEmENT OF ChANgES IN ShAREhOLDERS’ EqUITy FOR ThE PERIOD FROm JANUARy 1, 2013 TO DECEmbER 31, 2013

ShArE CApITAL TrEASury ShArES

ShArE prEmIum ACCouNT (AgIo)

oThEr SuppLEmENTAry CApITAL

rEVALuATIoN rESErVE rEVALuATIoN rESErVE From CASh FLow hEdgES

oThEr CApITALS uNdISTrIBuTEdproFIT

NoN-CoNTroLLINg INTErESTS

ToTAL

BalanceasofJanuary1,2013 4,548 (2 954) 136 522 101 841 1 - 9 961 84 707 6 084 340 710ProfitfortheperiodfromJanuary1,toDecember31,2013 (5) 85 342Othercomprehensiveincome–cashflowhedges - - - - - (336) - - - (336)Dividends - - - - - - - (14 441) - (14 441)Distributionofthefinancialresult - - - 53 195 - - - (53 195) - - Issuedshares 7 - 427 - - - (133) - - 301Issuedshareoptions - - - - - - 1 151 - - 1 151Cancellationofitsownshares (42) 3 894 - - - - (3 852) - - - Acquisitionofnon-controllinginterests - - - - - - - 45 (1 176) (1 131)Buy-backofitsownshares - (940) - - - - - - - (940)Transactionswithcapitalownersrecordeddirectlyinequity (35) 2 954 427 53 195 - - (2 834) (67 591) (1 176) (15 060)BalanceasofDecember31,2013 4 513 - 136 949 155 036 1 (336) 7 127 102 463 4 903 410 656

STATEmENT OF ChANgES IN ShAREhOLDERS’ EqUITy FOR ThE PERIOD FROm JANUARy 1 TO DECEmbER 31, 2014

ShArE CApITAL TrEASury ShArES

ShArE prEmIum ACCouNT (AgIo)

oThEr SuppLEmENTAry CApITAL

rEVALuATIoN rESErVE rEVALuATIoN rESErVE From CASh FLow hEdgES

oThEr CApITALS uNdISTrIBuTEdproFIT

NoN-CoNTroLLINg INTErESTS

ToTAL

BalanceasofJanuary1,2014 4,513 136 949 155 036 1 (336) 7 127 102 463 4 903 410 656ProfitfortheperiodfromJanuary1toDecember31,2014 93 357Othercomprehensiveincome–cashflowhedges 4,513 - 136,949 155,036 1 (336) 7,127 102,463 4,903 (4 128)Othercomprehensiveincome–valuationexchangeratedifferences - - - - (1) - - - - (1)Dividends - - - - - - - (17 225) - (17 225)Distributionofthefinancialresult - - - 6 407 - - - (6 357) - 50Issuedshares 41 - 2 685 - - - (580) - - 2 146Issuedshareoptions - - - - - - 878 - - 878Cancellationofitsownshares - - - - - - - - - - Acquisitionofnon-controllinginterests - - - - - - - (5 163) 4 239 (924)Buy-backofitsownshares - (17 387) - - - - - - - (17 387)Transactionswithcapitalownersrecordeddirectlyinequity 41 (17 387) 2 685 6 407 - - 298 (28 745) 4 239 (32 462)BalanceasofJanuary1,2014 4 554 (17 387) 139 634 161 443 - (4 465) 7 425 166 788 9 429 467 421


FINANCIAL RAPORT 88

1. gENERAL INFORmATION

1.2 ThE gROUP’S COmPOSITION

TheIssuerexercises(directandindirect)controloverthefollowingcompanies:

1.1 INFORmATION ON ThE PARENT ENTITy, CAPITAL gROUP AND ThE CONSOLIDATED FINANCIAL STATEmENTS

NEUCAGroupismadeupofNEUCAS.A.anditssubsidi-aries(seeNote1.2).TheparentcompanyoftheGroup,NEUCAS.A.withitsregisteredofficeinToruńul.SzosaBydgoska58(“Parent”)wasestablishedonDecember12,1994pursuanttotheNotarialDeedRepertoryANo.5395/1994.TheCompanycarriesoutitsoperationsintheterritoryoftheRepublicofPoland.TheparentcompanyisenteredintheRegisterofEntrepreneursoftheNation-alCourtRegisterkeptbytheDistrictCourt,the7thCom-mercialDepartmentoftheNationalCourtRegisterunderthenumberKRS0000049872.TheCompanywasassignedstatisticalREGONnumber870227804.

Thebusinesspurposeoftheparentiswholesaleofphar-maceuticalproducts(PKD(NACE)46.46).

ThebusinesspurposeoftheentireGroupiswholesaleofpharmaceuticalproducts.

TheseconsolidatedfinancialstatementswereapprovedforpublicationbytheBoardofDirectorsoftheparentonMarch18,2015.

TheconsolidatedfinancialstatementsoftheGroupcovertheperiodof12monthsendedonDecember31,2014andpresentcomparabledatafortheperiodof12monthsend-edonDecember31,2013.

ThedurationoftheparentandofentitiesformingtheGroupisunlimited.

rEgISTErEd oFFICE SCopE oF ACTIVITy

CoNSoLIdATIoN mEThod ThE group’S pErCENTAgE

ShArE IN ThE CApITALNAmE OF ThE ENTITy dEC.2014 dEC. 2013PRETIUm FARm SP. z O.O. Toruń Sales of drugs full 100% 100%NEUCA LOgISTyKA SP. z O.O. Toruń Logistic services full 100% 100%PRO SPORT SP. z O.O. Toruń Sales of clothes full 100% 100%Świat Zdrowia S.a. Toruń Marketing services full 93% 92%ITERO-SILFARm SP. z O.O. Katowice Agency services full 99% 99%mULTI SP. z O.O. NowaWieś Agency services full 99% 99%DhA DOLPhARmA SP. z O.O. Wrocław Agency services full 99% 99%hURTOwNIA APTEKARzy „gALENICA-PANAx” SP. z O.O. Gądki Agency services full 99% 99%APOFARm SP. z O.O. Toruń Other financial services full 98% 98%OPTImA RADIx vITA PLUS TADANCO S.A. Ołtarzew Agency services full 100% 100%PREgO S.A. Bielawa Agency services full 99% 99%SyNOPTIS PhARmA SP. z O.O. Warsaw Production of drugs and other pharmaceutical products full 100% 100%FARmADA TRANSPORT SP. z O.O. Toruń Road cargo transport full 100% 100%TORFARm SP. z O.O. Toruń Agency services full 100% 100%PROmEDIC SP. z O.O. Kielce Agency services full 100% 100%zPUh DEKA SP. z O.O.* Poznań Wholesale and retail trade in consumer goods notsubjecttoconsolidation 99% 99%PROSPER S.A. Warsaw Agency services full 97% 97%Cefarm CZęStoChowa Sp. Z o.o. Kamyk Agency services full 100% 100%CITODAT S.A. Wrocław Agency services full 100% 100%PFm.PL S.A. Warsaw IT activities full 72% 72%NEKK SP. z O.O. Poznań Advertising agency full 100% 100%OKTOgON INvESTmENT APS IN LIqUIDATION Copenhagen Investing activities full - 100%ILC SP. z O.O.** Warsaw IT activities full 100% 50%ACCEDIT SP. z O.O. Toruń Accounting & bookkeeping full 100% 100%INFONIA SP. z O.O. Toruń Call centre activities full 100% 100%bRAND mANAgEmENT 2 SP. z O.O. Toruń Lease of intellectual property and similar products full 99% 99%mARTINIqUE INvESTmENT SP. z O.O. Toruń Rental and management of its own or leased real estates full 98% 98%SyNOPTIS INDUSTRIAL SP. z O.O. Toruń Production of drugs and other pharmaceutical products full 100% 100%NEUCA mED SP. z O.O. Toruń Medical practice activities full 100% 100%FUNDACJA NEUCA DLA zDROwIA Toruń Improvement of health and well-being of the population full - -APOFARm SP. z O.O. INwESTyCJE SKA Toruń Other financial services full 99% 99%PhARmADOR SP. z O.O. Chludowo Sales of drugs full 100% -ACP PhARmA S.A. Warsaw Sales of drugs full 100% -CEFARm RzESzów SP. z O.O. Rzeszów Sales of drugs full 100% -LAgO SP. z O.O. Warsaw Sales of drugs full 100% -hEALThmORE SP. z O.O. Warsaw Sales of drugs full 100% -SCALA SP. z O.O. Toruń Activities of financial holding companies full 100% -PLR OgNIK SP. z O.O. Poznań General medical practice activities full 100% -PRO FAmILIA SP. z O.O. Dzierżoniów General medical practice activities full 100% -NzOz hELPmED zPChR Im. DR mED. T. bOCzONIA SP. z O.O. Tychy General medical practice activities full 100% -ESKULAP SP. z O.O. Tychy General medical practice activities full 100% -KONSyLIUm SP. z O.O. Głogów General medical practice activities full 100% -

*duetothecriterionofmaterialityofthefinancialstatementsofZPHUDekaSp.zo.o.,thisentityisnotsubjecttoconsolidation(IAS1);thecompanydoesnotcarryoutanyoperations;**shareinthecapitalofILCSp.zo.o.amountsto50.4%asatDecember31,2013.

89

TheGroup’sshareinvotingrightsisequaltotheshareincapitalsofthecompanies,exceptforProsperwheretheGroup’sshareinvotingrightsis99.0%.

FollowingacquisitionsofŚwiatZdrowiaS.A.sharesNeucaGroup’spercentageshareinthecapitalofŚwiatZdrowiaS.A.roseto93.2%.

FollowingacquisitionsofItero-SilfarmSp.zo.o.sharesNeu-caGroup’spercentageshareinthecapitalofItero-SilfarmSp.zo.o.roseto99.3%.

In2014,theliquidationoftheOktogonInvestmentApSinliquidationwascompleted.

In2014,theGroupwasextendedasaresultoftheacquisi-tionofsharesinACPPharmaS.A.andPharmadorSp.zo.o.(previouslyunderthenameofProfmedicaSp.zo.o.),NZOZHelpmedZPChrim.Drmed.TadeuszaBoczoniaSp.zo.o.,

PraktykaLekarzyRodzinnychOgnikSp.zo.o.,ProFamil-iaSp.zo.o.,PrzychodnaRejonowanumer3„Eskulap”–ZespółLekarzyRodzinnychSp.zo.o.andPrzychodniaLe-karska„Konsylium”Sp.zo.o.Detailedinformationaboutthetransactionsrelatedtothea/mcompaniesmaybefoundinNote3–„Businesscombinationsinthereport-ingperiod”.

In2014,ExigoSp.zo.o.wasestablishedanditssharesweresubscribedforbyNEUCAS.A.

In2014,100%ofthesharesinExigoSp.zo.o.weresold.

In2014,followingthepurchasesofsharesandholdingsandcapitalincreasesinsubsidiariesouraggregateper-centageshareinsubsidiariesslightlyincreased/decreasedwhichhoweverduetothesmallpercentageinthetotalvalueofourinterestsisirrelevantforthe2014report.

1.3 COmPOSITION OF ThE bOARD OF DIRECTORS AND OF ThE SUPERvISORy bOARD OF ThE PARENT

TheParent’sBoardofDirectorsasofDecember31,2014 andMarch18,2015:

• PiotrSucharski• GrzegorzDzik• JacekStyka

TheParent’sSupervisoryBoardasofDecember31,2014 andMarch18,2015:

• KazimierzHerba• WiesławaHerba• TadeuszWesołowski• IwonaSierzputowska• BożenaŚliwa

Informacje ogólne

90FINANCIAL RAPORT

2. INFORmATION ON ThE bASIS FOR PREPARATION OF ThE FINANCIAL STATEmENTS, REPORTINg CURRENCy AND APPLIED ROUNDINg CONvENTIONS

2.1 bASIS FOR PREPARATION OF ThE FINANCIAL STATEmENTS

ThefinancialstatementsofNEUCAGrouphavebeenpre-paredinaccordancewiththeInternationalFinancialRe-portingStandards,asapprovedintheEuropeanUnion.

Thefinancialstatementsconsistof:

– statementoffinancialposition,

– profitandlossandothercomprehensiveincome,

– statementofcashflows,

– statementofchangesinequity,

– additionalinformation.

2.2 APPLICATION OF NEw STANDARDS OR INTERPRETATIONS

WhenpreparingthefinancialstatementsfortheperiodfromJanuary1,2014toDecember31,2014anyappliedaccountingprinciples(policy)andcalculationmethodswerethesameasinthelastfinancialstatementsfortheyearendedonDecember31,2013,exceptforthefollowingchangesinstandardsandinterpretationseffectivefromJanuary1,2014.

Considerationofstandards,changesinaccountingstandardsandinterpretationseffectiveasofJanu-ary1,2014.

Thefollowingstandards,changesinstandardsandinter-pretationsareeffectiveasofJanuary1,2014:

– IFRS10„Consolidatedfinancialstatements”;

– IFRS11„Jointarrangements”;

– IFRS12„Disclosureofinterestsinotherentities”;

– AmendmentstoIAS27issuedin2011„Separatefi-nancialstatements”;

– AmendmentstoIAS28,issuedin2011,„Investmentsinassociatesandjointventures”;

– AmendmentstoIAS32„Financialinstruments:presentation–Offsettingfinancialassetsandfi-nancialliabilities”.

– AmendmentstoIFRS10,IFRS11andIFRS12:„Con-solidatedfinancialstatements”,„Jointarrange-ments”,„Disclosureofinterestsinotherentities”;

– AmendmentstoIFRS10,IFRS12andIAS27„Invest-mententities”;

– AmendmentstoIAS36“Impairmentofassets:Re-coverableamountdisclosuresfornon-financialassets”;

– AmendmentstoIAS39„Financialinstruments:Rec-ognitionandmeasurement”

Adoptionoftheaforementionedstandardsandinterpre-tationshasnotresultedinanysignificantchangesintheaccountingpolicyoftheGroupandinthepresentationofdatainthefinancialstatements.

Newstandardsand interpretationsnotapplied inthesefinancialstatements

Asofthedateofthisreport,therearestandardsandinter-pretationsalreadyapprovedbytheEuropeanUnionbutnotyeteffective:

– AmendmentstotheInternationalFinancialReport-ingStandards2011-2013–applicabletoannualperi-odsbeginningonorafterJanuary1,2015;

– IFRIC21“Levies”–applicabletoannualperiodsbe-ginningonorafterJune17,2014;

– AmendmentstoIAS19“Definedbenefitplans:Em-ployeecontributions”–applicabletoannualperiodsbeginningonorafterFebruary1,2015;

– AmendmentstotheInternationalFinancialReport-ingStandards2010-2012–applicabletoannualperi-odsbeginningonorafterFebruary1,2015;

Moreover,therearestandardsandinterpretationspend-ingapprovalbytheEuropeanUnion:

91

– IFRS14“Regulatorydeferralaccounts”–applicabletoannualperiodsbeginningonorafterJanuary1,2016;

– AmendmentstoIFRS11“Jointarrangements”–ap-plicabletoannualperiodsbeginningonorafterJan-uary1,2016;

– AmendmentstoIFRS16“Property,plantandequip-ment”andIAS38“Intangibleassets”–applicabletoannualperiodsbeginningonorafterJanuary1,2016;

– AmendmentstoIFRS16“Property,plantandequip-ment”andIAS41“Agriculture”–applicabletoan-nualperiodsbeginningonorafterJanuary1,2016;

– AmendmentstoIAS27“Separatefinancialstate-ments”–applicabletoannualperiodsbeginningonorafterJanuary1,2016;

– AmendmentstoIFRS10“Consolidatedfinancialstatements”andIAS28“Investmentsinassociatesandjointventures”–applicabletoannualperiodsbeginningonorafterJanuary1,2016;

– AmendmentstoIFRS10“Consolidatedfinancialstatements”,IFRS12“Disclosureofinterestsinoth-erentities”andIAS28“Investmentsinassociatesandjointventures”–applicabletoannualperiodsbeginningonorafterJanuary1,2016;

– AmendmentstoIAS1“Presentationoffinancialstatements”–applicabletoannualperiodsbegin-ningonorafterJanuary1,2016;

– AmendmentstotheInternationalFinancialReport-

ingStandards2012-2014–applicabletoannualperi-odsbeginningonorafterJanuary1,2016;

– IFRS15“Revenuefromcontractswithcustomers”–applicabletoannualperiodsbeginningonoraf-terJanuary1,2017;

– IFRS9“Financialinstruments”-applicabletoan-nualperiodsbeginningonorafterJanuary1,2018;

CurrentlytheBoardofDirectorsanalysesconsequenc-esandimpactoftheabovenewstandardsandinterpre-tationsonfinancialstatements.Theyarenotexpectedtohaveasubstantialimpactonthefinancialstatements.

2.3 FUNCTIONAL AND REPORTINg CURRENCy AND APPLIED ROUNDINg CONvENTIONS

ThefunctionalandreportingcurrencyofthesefinancialstatementsisPolishzloty,andallamountsareexpressed

inthousandsofPolishzlotys(unlessindicatedotherwise).

2.4 ON-gOINg CONCERN PRINCIPLE

ThefinancialstatementshavebeenpreparedassumingthattheCompanywillcontinueoperationsasanon-goingconcernintheforeseeablefuture.Asofthedateofapprov-

alforthefinancialstatements,therearenocircumstanceswhichwouldconstituteathreatforsuchcontinuedopera-tionsbytheGroup.

information on the basis for preparation of the financial statements, reporting currency and applied rounding conventions

92FINANCIAL RAPORT

3. ACCOUNTINg PRINCIPLESThefinancialstatementshavebeenpreparedonahistoricalcostbasisexceptfinancialinstrumentsdisclosedatfairvaluethroughprofitorloss.

3.1 DETAILED PRINCIPLES FOR vALUATION OF ASSETS, EqUITy AND LIAbILITIES APPLIED IN ThE gROUP

INTANgIBLE ASSETS

Intangibleassetsincludealsoassetsmeetingthefollow-ingcriteria:

– theycanbespunofforseparatedfromabusinessentityandsold,transferred,licensedorgivenforpaidusetothirdparties,bothindividuallyorjointlywiththeirrelatedcontracts,assetsorliabilities,or

– theyarisefromcontractsorunderanyotherlegaltitlesregardlesswhethertheyaretransferableorseparablefromabusinessentityornotorunderanyothertitlesorliabilities.

Intangibleassetsacquiredunderaseparatetransactionarerecognisedatpurchaseprices.Aftertheirinitialrec-ognition,intangibleassetsarevaluedatpurchasepriceormanufacturingcost,lessamortisationandimpairmentwrite-offs.Theireconomiclives,dependingontheirna-ture,areassessedandconsideredaslimitedorindefinite(trademarks).Intangibleassetswithindefiniteeconomiclivesarenotsubjecttoamortisationbutareonlyannuallytestedagainstimpairment.Intangibleassetswithlimitedeconomiclivesareamortisedduringsuchperiods.

Intangibleassetswithlimitedandspecificeconomiclivesareamortisedasfollows:

– computersoftwareandsoftwarelicenses2-5years

Amortisationisdisclosedunderoperatingexpensesintheprofitandlossandothercomprehensiveincome.

TheGroupverifiesonanannualbasisadoptedeconomiclives

andamortisationmethods.Ifthereisasignificantchangein

theconsumptionofeconomicbenefitsfromsuchassets,thepe-

riodsormethodsofamortisationanddepreciationaremodified

bychangingcurrentandfutureamortisationanddepreciation

write-offsaccordingly.

propErTy, pLANT ANd EquIpmENT

Property,plantandequipmentisinitiallyrecognisedatpurchasepriceormanufacturingcostand,inthecaseofbusinesscombinations,inaccordancewiththefairvalueestablishedatthemergerdate.

Purchasepricesareincreasedbyanyandallcostsdirectlyconnectedwiththepurchasesofassetsandtheiradap-tationforuse.Subsequentexpensesincreasethebalancesheetvalueofgivenitemofproperty,plantandequipment,ifasaresultofsuchexpensestheentityislikelytoobtainfutureeconomicbenefitsgreaterthantheonesoriginallyestimated.Othersubsequentexpensesincurredafterthedateofcommissioning,suchascostsofmaintenanceandrepairs,arerecognisedasexpensesoftheperiodwhentheywereincurred.

Afterinitialrecognition,property,plantandequipmentisreportedatpurchasepriceormanufacturingcost,lessde-preciationandimpairmentwrite-offs.

Depreciationisappliedusingastraight-linemethodbasedonratesreflectingexpectedeconomiclivesofgivenassetswhichfordifferentgroupsofproperty,plantandequip-ment,areasfollows:

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Depreciationstartsinthemonthfollowingthemonthinwhichproperty,plantandequipmentisavailableforuseandcommissioned.Landandproperty,plantandequip-mentunderconstructionarenotsubjecttodepreciation.

TheGroupverifiesonanannualbasisadoptedeconomiclivesandamortisationmethods.Ifthereisasignificantchangeintheconsumptionofeconomicbenefitsfromsuchassets,theperiodsormethodsofamortisationanddepre-ciationaremodifiedbychangingcurrentandfutuream-ortisationanddepreciationwrite-offsaccordingly.

Profitsorlossesfromdisposalofproperty,plantandequip-mentaredeterminedasadifferencebetweenproceedsfromsalesandnetvalueofsuchassetsandarerecognisedunderotheroperatingrevenues/expensesintheprofitandlossandothercomprehensiveincome.

If,whenpreparingthefinancialstatements,therearecir-cumstancessuggestingthatthereportingvalueofprop-erty,plantandequipmentmightnotberecoverable,theseassetsaretestedagainstimpairment.Ifthereareprem-isesshowingthatimpairmentcouldhaveoccurredandthereportingvalueexceedstheestimatedrecoverableval-ue,thenthevalueoftheseassetsorcashgeneratingunitstowhichtheseassetsbelongisreducedtotherecoverablevalue.Therecoverablevaluecorrespondstothehigherofthefairvaluelesssalecostsorthevalueinuse.Whende-terminingthevalueinuse,estimatedfuturecashflowsfromassetsarediscountedtotheircurrentvalueatagrossdiscountratereflectingcurrentmarketvaluesofmoneyintimeandrisksassociatedwithgivenassets.Inthecaseofassetswhichdonotsubstantiallyindependentlygeneratecashflows,therecoverablevalueisdeterminedforthecashgeneratingunitsuchassetsbelongto.Impairmentwrite-offsaredisclosedintheprofitandlossandothercompre-hensiveincomeunder“otheroperatingexpenses”.

Givenitemsofproperty,plantandequipmentmaybederecognisedfromthestatementoffinancialpositionaf-tertheirdisposalorinthecasewhennoeconomicbenefitsfromtheirfurtheruseareanticipated.

Expendituresforproperty,plantandequipmentundercon-structionrelatetoassetsinthecourseofconstructionor

assemblyandarerecognisedatpurchasepriceormanu-facturingcost.Property,plantandequipmentundercon-structionisnotsubjecttodepreciationuntiltheendofconstructionandcommissioning.Tangibleassetsunderconstructionarepresentedinthestatementoffinancialpositionunder“Tangibleassets”,andinexplanatorynotestheyareassignedtorespectivegroupsoftangibleassets.

LEASEGroupasthelessee

FinancialleasecontractsunderwhichtheGroupassumestheentiretyofriskandbenefitsfrompossessionoftheleasedassets,arepresentedinthestatementoffinancialpositionasofthestartingdateoftheleaseatthelowerofthefairvalueofleasedtangibleassetsorthepresentvalueofminimumleasefees.Minimumleasefeesarespreadbe-tweenfinancialexpensesandreductionsinthebalanceofleaseliabilitiessothattoobtainafixedrateofinterestinrelationtotheoutstandingliabilitybalance.Contingentleasefeesarepresentedunderthecostsoftheperiodwhentheyareincurred.

Property,plantandequipmentusedunderfinancialleasecontractsisdepreciatedaccordingtothesameprinciplesasappliedfortheGroup’sownassets.However,intheeventwhenthereisnosufficientcertaintythattheGroupwillobtainatitlebeforetheendofthelease,givenassetsaredepreciatedfortheshorteroftheestimatedeconomiclifeofproperty,plantandequipmentortheirleaseperiod.

Leaseswherealessorretainssubstantiallyalltherisksandben-

efitsofownershipoftheleasedassetareclassifiedasoperating

leases.Leasefeesunderoperatingleasesarerecognisedasex-

pensesintheprofitandlossandothercomprehensiveincome

usingastraightlinemethodfortheperiodoflease.

LEASEBACK

Asaleandleasebacktransactioninvolvesthesaleofanas-setandtheleasingbackofthesameasset.

Ifasaleandleasebacktransactionisafinanciallease,thenapartofsalesrevenueswhichexceedsthebalancesheetval-ue,issettledintimeandrecordedintheprofitandlossandothercomprehensiveincomeduringtheentireperiodoflease.

Accounting principles

94FINANCIAL RAPORT

INVESTmENT prorpErTIESInvestmentpropertiesarepropertiestreatedasasourceofrent

revenuesand/orarekeptastheirvaluegrowthisanticipated.

TheGroup’sinvestmentpropertiesexcluderealestateforwhich

itprovidesadditionalrealestate-relatedservicesfortheben-

efitoftheirlessors/landlordsandthevalueofdeliveredservices

issignificant.

Investmentpropertiesarevaluedinitiallyatpurchasepriceor

manufacturingcost,includingtransactioncosts.Afterinitialrec-

ognition,thevalueofinvestmentpropertiesisdecreasedbyde-

preciationandimpairmentwrite-offs.Withregardtoinvest-

mentpropertiesapplicabledepreciationperiodsandmethods

arethesameasfortangibleassets.

WhenadoptingIFRSthefairvaluedeterminedasofsuchdate

wasacceptedasthepurchasepriceofinvestmentproperties.

FIxEd ASSETS ANd NET ASSET groupS hELd For SALE

Fixedassetsandnetassetgroupsareclassifiedasheldforsaleiftheirbalancesheetvalueisrecovered,firstofall,asaresultofasalestransactionratherthantheirfurtheruse.Thisconditionisdeemedfulfilledonlywhenanasset(oranetassetgroupheldforsale)isavailableinitspresentcon-ditionforimmediatesaleandsuchsalestransactionisverylikelywithinayearfromarespectiveclassificationchange.

Fixedassetsclassifiedasheldforsaleaswellasnetassetgroupsheldforsalearevaluedatthelowerofthebalancesheetvalueorthefairvaluelesssalecosts.

INVENTory

Goodsarevaluedatthelowerofthepurchasepriceorthenetrealisablevalue.Additionalcostsrelatedtopurchasesofmaterialsandtradegoodsarehardlysignificantduetothefactthatpurchasedmaterialsandgoodsarerecognisedinaccountingbooksatpurchaseprices,whiledisbursementsaredisclosedaccordingtothemethodofadetailedidenti-ficationoftheiractualprices(costs).

TheGrouptests,onanongoingbasis,goodsagainstim-pairmentoftheircommercialvalue.Overdueanddamagedgoodsaresubjecttoliquidation.Costsofliquidatedgoodsarerecognisedinotheroperatingexpenses.

Discountsreceivedfromsuppliersarerecognisedintheperiod

towhichtheyrelate,asadjustmentstosellingcosts.Asofthe

lastdayofeachreportingperiodthevalueofinventoryissub-

jecttoadjustmentbydiscountsattributabletoparticularstock

items.

CoSTS oF ExTErNAL FINANCINg

Costsofexternalfinancingthatcanbedirectlyassignedtoassetpurchase,constructionormanufacturingtransac-tionsareapartofpurchasepriceormanufacturingcostofsuchassets.Otherexternalfinancingcostsarerecognisedasanexpenseintheperiodinwhichtheyareincurred.

STATE SuBSIdIES

Subsidiesareshowninthefinancialstatementsinaman-nerensuringtheircommensurabilitywithrelevantcoststhesubsidiesaretocompensatewhenthereisasufficientcertaintythattheentitysatisfiesconditionsapplicabletosubsidiesandthatthesubsidieswillbeactuallyreceived.

Subsidiestoassetsarerecognisedasdeferredincomerec-ognised,onaregularbasis,inthefinancialresultduringtheperiodofuseofrespectiveassets.

Subsidiestorevenuesarerecognisedasrevenuesinpar-ticularreportingperiodstoensurecommensurabilitywithrelevantcosts,ifthereisareasonablebeliefthattheentitywillsatisfyconditionsapplicabletosubsidiesandthatthesubsidieswillbeactuallyreceived.

FINANCIAL INSTrumENTS

TheGroupclassifiesasfinancialinstrumentseachandeve-rycontractwhichatthesametimecreatesafinancialassetforonepartyandafinancialliabilityorequityinstrumentfortheotherpartyprovidedthatthecontractbetweentwoormorepartiesclearlybringeconomiceffects.

TheGroupclassifiesfinancialinstrumentswithabreak-downinto:

1. Financialassetsorfinancialliabilitiesatfairval-uethroughprofitorloss–assetsandliabilitiesac-quiredorcontractedmostlyforsaleorrepurchaseintheshortterm,orbeingapartoftheportfolioof

95

specifiedfinancialinstrumentswhichismanagedjointly,andforwhichthereisaconfirmationofanup-to-dateactualformulaofgeneratingshort-termprofits;

2. Held-to-maturityinvestments–financialassetsotherthanderivatives,withdefinedoridentifiablepaymentsandwithadefinedmaturityinrelationtowhichtheGrouphasafirmintentionandisabletoholdthemuntilmaturity;

3. Loansandreceivables–financialassetsotherthanderivatives,withdefinedoridentifiablepayments,whicharenotquotedontheactivemarket;

4. Financialassetsheldforsale–financialassetsotherthanderivatives,whicharedesignatedasheldforsaleorwhicharenotloansandreceivables,held-to-maturityinvestments,orfinancialassetsatfairvaluethroughprofitorloss.

5. Otherfinancialliabilities.

Recognitionandderecognitionoffinancialassetsandfinancialliabilities

FinancialassetsorfinancialliabilitiesarerecognisedinthestatementoffinancialpositionwhentheGroupbecomesapartytothecontractforsuchinstruments.Standardisedtransactionsforpurchaseandsalesoffinancialassetsandliabilitiesarerecognisedasofthetransactiondate.

Financialassetsarederecognisedfromthestatementoffi-nancialpositioninthecasewhenrightstoeconomicben-efitsandrisksresultingfromarespectivecontractareal-readyexercised,expiredortheGrouphaswaivedthem.

TheGroupderecognisesfromthestatementoffinancialpositionfinancialliabilitieswhenliabilitiesexpire,thatiswhenarespectivecontractualobligationissatisfied,iscancelledorexpires.Valuationoffinancialinstrumentsasofthedateofin-ception

OnthedayofpurchasetheGroupreportsfinancialassetsandliabilitiesatfairvalue,namely,mostoften,atfairval-ueofanypaymentmade–inthecaseofassets,oranyamountreceived–inthecaseofliabilities.TheGroupin-cludestransactioncostsintheinitialvaluationofallfinan-

cialassetsandliabilitiesexceptforthecategoryofassetsandliabilitiesatfairvaluethroughprofitorloss.

Valuationoffinancialinstrumentsasofthelastdayofthereportingperiod

TheGroupvalues:

– atamortisedcostandtakingintoconsiderationef-fectiveinterestrates:held-to-maturityinvestments,loansandreceivablesandotherfinancialliabilities;valuationsmaybebasedonamountstobepaidifeffectsofdiscountareinsignificant;

– atfairvalue:financialassetsandliabilitiesatfairvaluethroughprofitorlossandfinancialassetsheldforsale.

Effectsofthevaluationoffinancialassetsheldforsalearerecognisedunderothercomprehensiveincome.Effectsofthevaluationoffinancialassetsandliabilitiesclassifiedintoothercategoriesarereportedintheprofitandlossandothercomprehensiveincome.

ThemostimportantfinancialinstrumentsusedbytheGroupinclude:– tradeandotherreceivables– bankcredits– tradeliabilities.

TrAdE ANd oThEr rECEIVABLES

Thisitemincludes:– tradereceivables,– receivablesundertaxes,customsduties,socialin-suranceandotherbenefits,

– receivablesundergrantedloans,– otherreceivables

brokendownintolong-termandshort-term.

Long-termreceivablesarereceivablesmaturingafter12monthsfromthelastdayofthereportingperiodex-ceptreceivablesundertransactionsinthenormalcourseoftheentity’sbusinesswhich,regardlessoftheirsettlementdate,areclassifiedintoshort-termreceivables.

Tradereceivablesarereportedinamountsdue,subjecttorevaluationwrite-offsonreceivables.Write-downsof


96FINANCIAL RAPORT

doubtfulreceivables,receivablesclaimedatcourtandaftercourtrulings,bothtradeandothers,areestimatedwhenthecollectionoftheirfullamountisnolongerlikely,i.e.whenthelastyear’srepaymentsarelowerthantenper-centofanyoverduebalance.Write-downsfordoubtfulre-ceivablesaremadeuptotheirfullvalue.

Notwithstandinggeneralprinciplesinplace,theGroupanalysesassetsandfinancialpositionofindividualbusi-nesspartnersandif,asaresultofsuchanalysis,itbe-comesevidentthatrepaymentofreceivablesincontract-edamountsisnotlikely,thenwrite-downsarecreated.Theanalysisofthedebtor’spositionincludesreasonsforade-fault,possiblefinancialproblemsofthedebtor,historicalandpresentcooperationaswellasanycollateralsprovided.

TheGroupdoesnotcreatewrite-downsonreceivablesfrompublichospitalsforwhich,inthecaseofliquidation,theirfoundingbodies,i.e.publicfinancesectorentities,areresponsible.

Amountsofcreatedwrite-downsonreceivablesarerecord-edintheprofitandlossandothercomprehensiveincomeunderotheroperatingexpensesorinfinancialexpensesdependingonthetypeofreceivablessuchwrite-downsapplyto.

Inmostcases,paymentdatesfallonwithin0-60days.Forcustomersdefaultingwithpayment,theGroupaccruesinterestorreducestheamountofgranteddiscounts.Ontheotherhand,itdoesnotaccrueinterestondeferredpayments.

Afterinitialrecognition,receivablesarevaluedatamortisedcost,usingtheeffectiveinterestratemethod.Theamortisedcostisthevalueatwhichafinancialassetisenteredforthefirsttimetotheaccountingbooks,lessanyrepaymentsofitsnominalvalue,adjustedaccordinglybytheaccumulatedamountofadiscounteddifferencebetweentheinitialvalueofsuchitemanditsvalueatmaturity,calculatedusingeffec-tiveinterestrates,lesswrite-downs,ifany.

BANk CrEdITS ANd oThEr FINANCIAL LIABILITIES

Atinitialrecognition,bankcreditsareshownatpurchasepricecorrespondingtotheirfairvalue,lessanycostsrelat-edtocontractingagivenfinancialliability.Financialcosts,togetherwithcommissionsaswellasdirectborrowingcostsaredisclosedintheprofitandlossandothercompre-hensiveincomeintheperiodtheyrelateto.

Followinginitialrecognition,creditsarethenmeasuredatamor-

tisedcostusingtheeffectiveinterestratemethod.Measurements

includeanyexpensesassociatedwithobtainingsuchcreditorloan

financingaswellasdiscountsorpremiumsreceivedwhenset-

tlingliabilitiesaretakenintoconsideration.Profitsandlossesare

recordedintheprofitandlossandothercomprehensiveincome

uponderecognitionoftheliabilityfromthestatementoffinan-

cialposition.Ifdiscounteffectsarenotsignificant,valuationasof

thelastdayofthereportingperiodismadeatamountstobepaid.

TrAdE LIABILITIES

Afterinitialrecognition,allliabilitiesexceptliabilitiesatfairvaluethroughprofitorloss,arevalued,asaprinciple,atamortisedcostusingthemethodofeffectiveinterestrate.However,liabilitiesmaturingafter12monthsfromthelastdayofthereportingperiodareanalysedagainstpremiseshavingimpactonvaluationofsuchliabilitiesatamortisedcost(interestratechanges,possibleadditionalcashflowsandothers).Onthebasisoftheresultsofsuchanalysis,liabilitiesarevaluedatamountstobepaidwhenthedifferencebetweenthevalueattheamortisedcostandthevalueatamountstobepaiddoesnothaveasignificantimpactonthefinancialstatements.

Inmostcases,paymentdatesfallonwithin0-90days.Suppliers

donotchargeinterestondeferredpayments.

hEdgE ACCouNTINg

Derivativesdesignatedashedgesfromwhichitisexpect-edthattheresultingcashflowswouldoffsetchangesincashflowsfromthehedgeditemarerecognisedinaccord-ancewiththeprinciplesoffairvalueorcashflowhedgeaccountingifatthesametimeallthefollowingconditionsaresatisfied:

97

– attheinceptionofthehedgethereisformaldesig-nationanddocumentationofthehedgingrelation-shipandtheGroup’sriskmanagementobjectiveandstrategyforundertakingthehedge,

– thehedgeisexpectedtobehighlyeffectiveinoffset-tingchangesinfairvalueorcashflowsattributabletothehedgedrisk,consistentlywiththeoriginallydocumentedriskmanagementstrategyforthatpar-ticularhedgingrelationship,

– forcashflowhedges,aforecasttransactionthatisthesubjectofthehedgemustbehighlyprobableandmustpresentanexposuretovariationsincashflowsthatcouldultimatelyaffectprofitorloss,

– theeffectivenessofthehedgecanbereliablyassessed,

– thehedgeisassessedonanongoingbasisandde-terminedactuallytohavebeenhighlyeffectivethroughoutthereportingperiodsforwhichthehedgewasdesignated.

Cashflowhedging

TheGroupassessestheeffectivenessofthehedgewhenes-tablishingthehedgeandateachlastdayofthereportingperiod.Hedgeeffectivenessisthedegreetowhichchang-esincashflowsofthehedgeditemthatareattributabletoahedgedriskareoffsetbychangesincashflowsofthehedginginstrument.ChangesinthefairvalueoffinancialderivativesdesignatedascashflowhedgesinpartsbeingeffectivehedgesoftheGrouparereportedinothercompre-hensiverevenue.Changesinthefairvalueoffinancialde-rivativesdesignatedascashflowhedgesinpartsnotbeingeffectivehedgesoftheGrouparereportedunderfinancialrevenuesorexpensesofthereportingperiod.

TheGroupceasestoapplycashflowhedgeaccountingprin-cipleswhen:

– thehedgeexpires,issold,releasedorexercised–insuchacase,thecumulativegainsorlossesfromthehedginginstrument,reportedinothercomprehen-siveincome,arefurtherdisclosedunderaseparateiteminequity,untiltheoccurrenceoftheexpectedtransaction,

– thehedgenolongersatisfieshedgeaccountingcri-teria–insuchacase,thecumulativegainsorloss-esfromthehedginginstrument,reportedinothercomprehensiveincome,arefurtherdisclosedunderaseparateiteminequity,untiltheoccurrenceoftheexpectedtransaction,

– theforecasttransactionisnolongerexpectedtooc-cur,inwhichcaseanyrelatedcumulativegainsorlossesonthehedginginstrumentreportedinoth-ercomprehensiveincomearedisclosedinfinancialresult,

– thehedgingrelationshipiscancelled–insuchacase,thecumulativegainsorlossesfromthehedginginstrument,reportedinothercomprehen-siveincome,arefurtherdisclosedunderaseparateiteminothercomprehensiveincome,untiltheoc-currenceoftheexpectedtransactionoruntilitsoc-currenceisnolongerexpected.

proVISIoNS

ProvisionsarecreatedwhentheGrouphasanexistingobliga-

tion(legalorcustomarilyexpected)resultingfrompastevents

andwhereitisprobablethatdischargingthatobligationwill

causethenecessityofoutflowsofeconomicbenefits,andwhen

theGroupcanmakeareliableestimateoftheamountofthatli-

ability.IftheGroupexpectsthatprovisionedcostswillbereim-

bursed,forexample,frominsurance,thensuchreimbursement

isrecognizedasaseparateassetbutonlywhenthereisasuffi-

cientcertaintythatthisreimbursementwillbeactuallymade.

rEVENuES ANd ExpENSES

Salesrevenuesarerecognisedatfairvalueofpaymentsre-ceivedordueandincludeanyamountsdueforproducts,goodsandservicesdeliveredinthenormalcourseofbusi-ness,lessanyvalueaddedtaxes,discountsandotherre-ductions,i.e.discounts,trade-relatedservices.

Revenuesaredisclosedintheamountwhichislikelythatthe

Groupcanobtaineconomicbenefitsinconnectionwithagiv-

entransactionandiftheamountofrevenuescanbereliably

assessed.


98FINANCIAL RAPORT

Salesofgoodsandproducts

Salesofgoodsandproductsareshownwhengoodsandproductsaredeliveredandwhenallsignificantrisksandbenefitsfromthetheirtitlearetransferredtothebuyerandiftheamountofrevenuescanbereliablyestimated.

Provisionofservices

Revenuesfromtheprovisionofservicesareshownproratatoprogressesoftheirdeliveryifthetransactionre-sultcanbereliablyestimated.Apercentageprogressintheserviceprovisionisdeterminedastheratioofcostsincurredasatagivendayinrelationtoallcoststobein-curred.Ifresultofsuchtransactioncannotbereliablyes-timated,revenuesunderarespectivecontractareshownonlyuptotheamountofincurredcostswhichtheGroupexpectstorecover.

Rentrevenues

Rentrevenuesfrominvestmentpropertiesarerecognisedusingastraight-linemethodfortheentirerentperiodinaccordancewithapplicablecontracttermsandconditions.

Otheroperatingrevenuesandexpenses

OtheroperatingrevenuesincluderevenuesandprofitswhicharenotdirectlyconnectedwiththeGroup’soper-atingactivities.Thiscategoryalsoincludesreceivedsubsi-dies,profitsondisposalofproperty,plantandequipment,compensationsreceivedasreimbursementsoflegalcosts,overpaidtaxliabilitiesexceptforcorporateincometaxandreceivedcompensationsforlossesintheGroup’spropertycoveredbyinsurance.

Otheroperatingrevenuesincludealsoreversingwrite-downsonreceivablesandinventoryaswellasimpairmentlossesforfixedassets.

OtheroperatingexpensesalsoincludeexpensesandlossesnotassociateddirectlywiththeGroup’soperatingactivi-ties.Thiscategoryincludeslossesondisposalofproperty,plantandequipment,donationsgranted,bothintangibleandcashform,forthebenefitofotherentities,includingpublicbenefitentities,andwrite-downsonassets.

Financialrevenuesandexpenses

Financialrevenuesincludeinterestrevenuesfromdepositsandinvestmentsinvariouskindsoffinancialinstruments.

Financialactivitiesalsoincludeforeignexchangegains.

Financialexpensesincludeexternalborrowingcosts,in-terestpayableunderfinancialleasecontractstowhichtheGroupisaparty,andotherfinancialexpenses.Financialactivitiesalsoincludeforeignexchangelosses.

Interest

Interestisshowntakingintoaccounteffectiveinterestratesprovidedthat:

– itislikelythattheGroupwillactuallyobtaineco-nomicbenefitsunderanygiventransaction,and

– theamountofrevenuescanbereliablydetermined.

RevenuesunderinterestonoverduereceivablesareshowninaccumulatedfiguresinreferencetotheprincipalamountofreceivablesiftheCompanydecidestoclaimthemanddependingontheirrecoverability.Revenuesfrominter-estonreceivablesfromhospitalsaredisclosedatprincipalamountsdueifadecisionismadetopursuesuchclaimsbasedontheaverageoverdueperiodofprincipalreceiva-blesinagivenperiod.

Dividends

Dividendrevenuesarerecognisedonrecorddateswhenshareholders’rightstosuchdividendsaredetermined.

transakcje w walutach obcych

Transakcjewyrażonew walutachinnychniżwalutafunkc-jonalnasąprzeliczanena walutęfunkcjonalnąprzyzasto-sowaniukursuobowiązującegow dniuzawarciatransakcji.

Nadzieńkończącyokressprawozdawczypozycjepieniężnewyrażonew walutachinnychniżwalutafunkcjonal-nasąprzeliczanenawalutęfunkcjonalnąprzyzastoso-waniuodpowiednioobowiązującegonakoniecokresusprawozdawczegośredniegokursuustalonegodladanejwalutyprzezNarodowyBankPolski.Niepieniężnepozy-cjebilansoweujmowanewedługkosztuhistorycznegowyrażonegow walucieobcejsąwykazywanepokursiehis-torycznymz dniatransakcji.Niepieniężnepozycjeewidenc-jonowanewedługwartościgodziwejwyrażonejw walucieobcej,wycenianesąwedługkursuwymianyz dniaustale-niawartościgodziwej.Powstałez przeliczeniaróżnicekur-

99

soweujmowanesąodpowiedniow pozycjiprzychodów

(kosztów)finansowych.

ForEIgN CurrENCy TrANSACTIoNS

Transactionsexpressedincurrenciesotherthanthefunc-

tionalcurrencyareconvertedintothefunctionalcurrency

usingexchangerateseffectiveasofthetransactiondate.

Asofthelastdayofthereportingperiodcashitemsexpressed

incurrenciesotherthanthefunctionalcurrencyareconverted

intothefunctionalcurrencyusingaverageexchangerates,as

announcedbytheNationalBankofPoland,effectiveasoftheend

ofthereportingperiod.Non-cashbalancesheetitems,shownat

theirhistoricalcostexpressedinaforeigncurrency,arereported

athistoricalcostasofthetransactiondate.Non-cashitemsre-

cordedatfairvalueexpressedinaforeigncurrencyarevalued

atexchangeratesasofthedatewhensuchfairvalueisdeter-

mined.Exchangeratedifferencesarisingfromconversionare

recognisedunderrespectivelyfinancialrevenuesorexpenses.

CoSTS oF FuTurE pENSIoN BENEFITSGENERAL PRINCIPLES

Paymentstodefinedcontributionpensionschemesare

includedintheprofitandlossandothercomprehensive

incomewhentheybecomepayable.Paymentstostate

schemesaretreatedthesamewayaspaymentstodefined

contributionschemes.

Inthecaseofdefinedbenefitpensionschemescostsofben-

efitsaredeterminedusingaprojectedunitcreditmethod,

withactuarialvaluationasofthelastdayofeachreport-

ingperiod.Actuarialprofitsandlossesarerecogniseden-

tirelyintheperiodwhentheyoccurunderothercompre-

hensiveincome.

Pastservicecostsarerecognisedimmediatelytotheextent

towhichtheyrelatetoalreadyacquiredbenefits,inalloth-

ercasestheyaredepreciatedusingastraight-linemethod

fortheaverageperiodinwhichbenefitsbecomevested.

Liabilitiesunderpensionbenefitspresentedinthestate-

mentoffinancialpositionarereportedatfairvalueusing

applicableactuarialmethods.

InthestatementoffinancialpositiontheGrouppresentsprovisionsforemployeebenefitsinequityandliabilitiesunder“Provisionsforliabilitiesunderemployeebenefits”,withabreakdowninto:

– long-termliabilities–provisionsortheirpartswiththeexpecteddateofusefallingmorethan12monthsfromthelastdayofthereportingperiod,

– short-termliabilities–provisionsortheirpartswiththeexpecteddateofuseoffallingwithin12monthsfromthelastdayofthereportingperiod.

Provisionsforemployeebenefitsareapartoftheemploy-eeremunerationsotheyarerecordedunderoperatingexpenses.

Retirementbenefits

AccordingtotheremunerationsystemsinplaceintheGroup,employeesareentitledtoretirementseverancepays.Retirementseverancepaysareone-offpaymentsmadetoemployeeswhentheyretire.Theamountofre-tirementseverancepaysdependsontheemployees’lengthofserviceandaverageremuneration.TheGroupcreatesaprovisionagainstfutureretirementgratuityliabilitiesinordertoassignexpensestotheperiodtheyreferto.Retire-mentseverancepaysaredefinedbenefitpost-employmentprograms.Accruedliabilitieswillbeequaltodiscountedpaymentswhichwillbemadeinthefuture,takingintoac-countemploymentturnover,andrelatetotheperiodend-ingonthelastdayofthereportingperiod.Demographicinformationandemploymentturnoverdataarebasedonhistoricalfigures.Actuarialprofitsandlossesarerecog-nisedunderothercomprehensiveincome.

Provisionsforunusedholidayleaves

TheGroupcreatesaprovisionforcostsofaccumulatedpaidabsencewhichitwillhavetocoverasaresultofrightsun-usedbyemployeesandacquiredasofthelastdayofthereportingperiod.Thisprovisionisashort-termoneanditisnotsubjecttodiscounting.

ShArE-BASEd pAymENTS

Equity-settledshare-basedpaymentsforemployeesandotherpersonsprovidingsimilarservicesarestatedatfair


100FINANCIAL RAPORT

valueofequityinstrumentsasofthegrantdate.

Thefairvalueofequity-settledshare-basedpaymentsde-terminedasofthegrantdateisrecordedincostsusingastraight-linemethodinthevestingperiodbasedontheGroup’sestimateswithregardtovestedequityinstru-ments.AsofthelastdayofeachreportingperiodtheGroupverifiesestimatesconcerningthenumberofequityinstru-mentsexpectedforgranting.Anypossibleimpactofsuchverificationoforiginalestimatesisrecognisedintheprofitandlossandothercomprehensiveincomefortheremain-ingperiodofgrantingwithappropriateadjustmentstoeq-uity-settledemployeebenefits.

Transactionswithotherpartiesconcerningshare-basedpaymentssettledusingtheequitymethodarerecognisedatfairvalueofreceivedgoodsorservicesexceptwhensuchvaluecannotbereliablyestimated.Thenthebasisforvalu-ationisthefairvalueofgrantedequityinstrumentsmeas-uredasatthedatewhentheentityreceivesgoodsorser-vicesfromitsbusinesspartner.

Inthecaseofcash-settledshare-basedpaymentscorre-spondingliabilitieswithavalueproportionaltotheshareinthevalueofreceivedgoodsorservicesarerecognised.Suchliabilitiesaredisclosedatthepresentfairvaluedeter-minedasofthelastdayofthereportingperiod.

TAxES

Statutorychargesonthefinancialresultinclude:currenttaxesanddeferredtaxes.

Currenttaxchargesarecalculatedonthebasisoftaxre-sults(taxationbases)ofgivenreportingperiods.Taxprof-its(losses)differfromnetbookprofits(losses)duetotheexclusionoftaxablerevenuesandtaxdeductibleexpens-esofthefollowingyearsaswellasexpenseandrevenueitemswhichwillneverbetaxable.Taxchargesarecalcu-latedonthebasisofthetaxratesapplicableinthegivenreportingperiod.

Deferredtaxiscalculatedasataxpayableorrefundableinthefutureonthedifferencesbetweenthebalancesheetvaluesofassetsandliabilitiesandtheircorrespondingtaxvalues.Deferredtaxprovisionsarecreatedonallpositive

temporarydifferencessubjecttotaxationwhiledeferredtaxassetsarerecognisedtotheextenttowhichitislikelythatitwillbepossibletoreducefuturetaxprofitsbyrec-ognisednegativetemporarydifferences.Ataxliabilityisnotcreatediftemporarydifferencesrefertogoodwillorresultfromtheinitialrecognitionofotherassetsorliabili-tiesunderatransactionotherthanabusinesscombinationwhichhasnoimpacteitherontaxresultoronbookresult.Deferredtaxprovisionsandassetsarerecognisedontem-porarytaxdifferencesarisingasaresultofinvestmentsinsubsidiaries,associatesandjointventuresunlesstheentityisabletocontrolthemomentwhentemporarydif-ferencesarereversedanditislikelythatintheforeseeablefuturetemporarydifferenceswillnotreverse.Thevalueofdeferredtaxassetsistestedasofthelastdayofeachre-portingperiodandintheeventwhentheanticipatedfu-turetaxprofitsarenotsufficienttorealisesuchassetsoranypartthereof,theassetsareadjusted.Deferredtaxesarecalculatedusingtaxratesthatwillbeeffectivewhenassetsarerealisedorliabilitiesbecomepayable.Deferredtaxesarerecognisedintheprofitandlossexceptwhentheyapplytoitemsincludeddirectlyunderothercompre-hensiveincome.

101

3.2 CONSOLIDATION

CoNSoLIdATIoN prINCIpLES

TheconsolidatedfinancialstatementsincludefinancialstatementsoftheparentNEUCAS.A.andfinancialstate-mentsofsubsidiariescontrolledbytheparent,preparedasofthelastdayofthereportingperiod.InaccordancewithIFRS10“ConsolidatedFinancialStatements”theGroupex-ercisecontroloveranentity,ifduetoitsinterestintheen-tityisexposedtochangingfinancialresultsorwhenithasrightstovariablefinancialresultsandhastheabilitytoin-fluencethemthroughtheexerciseofpowerovertheentity.

Asofthedateofacquisitionofasubsidiary(takingovercon-trol),assetsandliabilitiesoftheacquiredentityarevaluedatfairvalue.Anysurplusoftheacquisitionpriceabovethefairvalueofidentifiableacquirednetassetsisreportedasgoodwill.Intheeventwhentheconsiderationpaidattheacquisitionplusamountsofanynon-controllinginterestsintheacquireeislowerthanthefairvalueofidentifiableacquirednetassetsoftheentity,thedifferenceisshownasprofitintheprofitandlossandothercomprehensivein-comeintheperiodinwhichtheacquisitioniscarriedout.

Non-controllinginterestsarepresentedintheconsolidatedstatementoffinancialpositionasequity,separatelyfromequityofownersoftheparent.Profitsandlossesandoth-ercomprehensiveincomeareattributedtoownersoftheparentandnon-controllinginterests.Totalcomprehensiveincomeisattributedtoownersoftheparentandnon-con-trollinginterestsevenwhennon-controllinginterestshaveanegativevalue.

Changesinshareholdingoftheparentwhichdonotresultinthelossofcontroloverasubsidiaryareshownascapitaltransactions(i.e.astransactionswiththeownersactingasownersoftheentity).Insuchcasesinordertoreflectchangesinrelativesharesinthesubsidiary,capitalsattrib-utabletoshareholdersoftheparentandnon-controllingin-terestsareadjusted.Anydifferencesbetweentheamountofadjustmentstocapitalsattributabletonon-controllinginterestsandthefairvalueoftheamountpaidorreceivedarerecordeddirectlyincapitalsattributabletosharehold-ersoftheparent.

Subsidiariessoldduringthefinancialyeararesubjecttoconsolidationfromthebeginningofsuchfinancialyearuntilthedateoflossofcontrol.Financialresultsoftheen-titiesacquiredduringtheyearareshowninthefinancialstatementsfromthemomentoftakingovercontrol.

Theconsolidatedfinancialstatementsareexclusiveofanytransactions,balances,revenuesandcostsbetweencon-solidatedrelatedparties.

INVESTmENTS IN ASSoCIATES

Associatesareentitiesoverwhichtheparentdoesnotex-ercisecontrolbutonwhichithasasignificantinfluencebyparticipatingindeterminationoftheirfinancialandop-erationalpolicies.Sharesinassociatesarevaluedusingtheequitymethodexceptwhentheyareclassifiedas“heldforsale”.Investmentsinassociatesarevaluedatpurchasepric-es,takingintoaccountchangesinnetassetsofsuchentityoccurringuntilthelastdayofthereportingperiod,lessanyimpairmentofparticularinvestments.

goodwILL

Goodwillonconsolidationisasurplusoftheconsiderationpaidplusanyamountsofnon-controllinginterestsintheacquireeoverthefairvalueofidentifiableassetsandliabili-tiesofthesubsidiary,associatesorjointventureasofthedateofacquisition.

Goodwillisreportedunderassetsandatleastonceayearitistestedagainstimpairment.Effectsofimpairmentarerecordedintheprofitandlossandothercomprehensiveincomeandarenotreversibleinthesubsequentperiods.


102FINANCIAL RAPORT

4. bASIC ACCOUNTINg JUDgmENTS AND bASIC REASONS FOR UNCERTAINTIES IN ESTImATESWhenapplyingaccountingpolicieseffectiveintheGroup,theBoardofDirectorsoftheparentcompanyisobligedtomakeestimates,judgmentsandassumptionsconcern-ingvaluationsofindividualassetsandliabilities.Estimatesandtheirunderlyingassumptionsarebasedonpastexpe-rienceandotherfactorsconsideredsignificant.Actualre-sultsmaydifferfromadoptedestimates.Estimatesandun-

derlyingassumptionsaresubjecttorevisiononacurrentbasis.Anychangeinestimatesisreportedintheperiodofsuchverificationifitappliestosuchperiodonlyorinthecurrentandfutureperiodsifthechangerelatestofutureperiodstoo.

4.1 bASIC REASONS FOR UNCERTAINTIES OF ESTImATES

Basicassumptionsconcerningthefutureandotherbasesofestimationasofthedateofthisstatementoffinancialpositionwhichhaveasubstantialimpactontheriskofsignificantadjustmentstothebalancesheetvaluesofas-setsandliabilitiesinthenextreportingperiodsarepre-sentedbelow.

Economiclivesoftangibleassetsandintangibleassets

asdescribedinpoint3–Accountingprinciples,theGroupverifiestheanticipatedeconomiclivesofproperty,plantandequipmentandintangibleassetsasofthelastdayofeachannualreportingperiod.IntheopinionoftheBoardofDirectorsacceptedeconomiclivesofassetsreflecttheireconomicuseandpossiblecontractualrestrictions,ifany.

Valuationofreceivables

Assumptionsrelatedtoamountsofwrite-downsonreceiv-ableshavebeendescribedintheaccountingprinciplesinthepartregardingtradereceivablesandotherreceivables.

Valuationofgoodwill

Assumptionsrelatedtoimpairmenttestinghavebeende-scribedinNote3–BusinessCombinations.

103

5. ADJUSTmENTS TO PREvIOUSLy PRESENTED FINANCIAL STATEmENTSInconnectionwiththeunificationoftherulesofdividingcostsintosalesexpensesandoverheadexpenses,inthesefinancialstatementstheGroupadjustedsalesexpensesandoverheadexpensesforthefirstquarter2013.Thischangehasnotresultedinanychangesofthefinancialresultfor2013.

For ThE pErIod From JANuAry 1, 2013

To dECEmBEr 31, 2013 AdJuSTmENT

For ThE pErIod FromJANuAry 1, 2013

To dECEmBEr 31, 2013 AFTEr AdJuSTmENTS

Grossprofitonsales 551 855 - 551 855Salesexpenses 278 400 4 849 283 249Overheadexpenses 150 497 (4 849) 145 648Profitonoperatingactivities 102 455 - 102 455Profitbeforetaxes 104 533 - 104 533Netprofit 85 342 - 85 342

basic accounting judgments and basic reasons for uncertainties in estimates

104FINANCIAL RAPORT

6. ExPLANATORy NOTES TO ThE CONSOLIDATED FINANCIAL STATEmENTS PREPARED FOR ThE PERIOD FROm JANUARy 1, 2014 TO DECEmbER 31, 2014

NoTE 1 OPERATINg SEgmENTS

FormanagementpurposestheGroupisdividedintobusi-nessunitsbasedonofferedproductsandservices.Start-ingfromJanuary1,2009theCompanyseparatedreport-ingsegmentsforwhichitappliedregulationsofIFRS8.TheaccountingprinciplesappliedinthereportingsegmentsarethesameastheaccountingpolicyoftheGroup.Seg-mentprofits/lossesaredeterminedonthebasisofresultsofthecompaniesfromthesegmentafterconsolidationadjustments.

Startingfrom2014,theGroupseparatedthesegmentofOutpatientcareclinics.

TheGroupdistinguishesthefollowingreportingoperat-ingsegments:

– Pharmaceuticalwholesale–coreactivitiesofthe

segmentincludewholesaleofpharmaceuticalproducts;

– Ownbrands–coreactivitiesofthesegmentincludemarketlaunchingofpharmaceuticalproductsun-derourownbrand;

– Marketingservices–coreactivitiesofthesegmentincludemarketingactivitiesforentitiesfromout-sideofthepharmaceuticalmarket;

– ITservices–coreactivitiesofthesegmentincludeIT

operations;

– Outpatientcareclinics–coreactivitiesoftheseg-mentincludegeneralmedicalpractice.

TheGroupoperatesinasinglegeographicalareawhichistheterritoryoftheRepublicofPoland.

dATA For ThE pErIod From JANuAry 1, 2014 To dECEmBEr 31, 2014

phArmACEuTICAL whoLESALE owN BrANdS

mArkETINg SErVICES IT SErVICES

ouTpATIENT CArE CLINICS AdJuSTmENTS ToTAL

SALES REvENUESRevenuesfromexternalcustomers

6 558 029 57 1 242 5 982 3 390 - 6 568 700

Revenuesfromothersegments 10 962 54 715 9 060 2 127 - (76 864) - Revenuesinsidethesegment 840 042 - - - - (840 042) - Totalrevenues 7 409 033 54 772 10 302 8 109 3 390 (916 906) 6 568 700Operatingprofit 69 237 13 071 4 650 (779) 151 (9 717) 76 613Interestrevenues 54 462 2 - 3 8 (35 505) 18 970Otherfinancialrevenues 35 690 5 - - - (35 425) 270Interestexpenses 49 521 542 - 350 49 (35 158) 15 304Otherfinancialexpenses 2 315 91 - 3 - (548) 1 861Incometax (16 329) 2 577 895 64 36 (1 912) (14 669)Netprofit(loss) 123 882 9 868 3 755 (1 193) 74 (43 029) 93 357

OThER INFORmATIONIncreases/(decreases)infixedassets

42 678 10 552 195 39 266 (374) 53 356

Depreciationandamortisation 27 577 235 46 86 44 (65) 27 923

*RevenuesofthesegmentoftheGroup’sownbrandsonsalestoothersegmentsamountedtoPLN54,715,000,whilerevenuesofthePharmacywholesalesegmentonsalesoftheGroup’sownbrandsin2014reachedPLN59,779,000(4Q2014-PLN18,435,000).

105

dATA For ThE pErIod From JANuAry 1, 2013 To dECEmBEr 31, 2013

phArmACEuTICAL whoLESALE owN BrANdS

mArkETINg SErVICES IT SErVICES AdJuSTmENTS ToTAL

SALES REvENUESRevenuesfromexternalcustomers

5 785 845 119 1 117 8 011 - 5 795 092

Revenuesfromothersegments 8 645 36 728 10 128 2 590 (58 091) - Revenuesinsidethesegment 515 326 - - - (515 326) - Totalrevenues 6 309 816 36 847 11 245 10 601 (573 417) 5 795 092Operatingprofit 88 300 9 119 5 074 (92) 54 102 455Interestrevenues 35 040 5 - 21 (16 682) 18 384Otherfinancialrevenues 3 374 - - 1 (3 122) 253Interestexpenses 30 076 935 - 394 (16 682) 14 723Otherfinancialexpenses 2 370 1 - 1 (536) 1 836Incometax 16 650 1 629 911 (9) 10 19 191Netprofit(loss) 77 618 6 559 4 163 (456) (2 542) 85 342

OThER INFORmATIONIncreases/(decreases)infixedassets

34 496 6 184 - 226 (304) 40 602

Depreciationandamortisation 24 427 127 18 80 (367) 24 285

*RevenuesofthesegmentoftheGroup’sownbrandsonsalestoothersegmentsamountedtoPLN36,728,000,whilerevenuesofthePharmacywholesalesegmentonsalesoftheGroup’sownbrandsin2013reachedPLN41,475,000(4Q2013-PLN11,573,000)..

explanatory notes to the consolidated financial statements prepared for the period from january 1, 2014 to december 31, 2014

106FINANCIAL RAPORT

NoTE 2 INTANgIbLE ASSETS

Trademarksareassignedtothepharmacywholesalesegment.DECEmbER 31, 2014 DECEmbER 31, 2013

INTANgIbLE ASSETS ToTAL NETVALuE, INCLudINg:

ToTAL NETVALuE, INCLudINg:

Trademarks 5 400 5 400Patents,licencesandcomputersoftware 8 273 9 268Otherintangibleassets 2 992 2 991Netreportingvalue 16 665 17 659Advancesforintangibleassets 9 165 3 540Totalintangibleassets 25 830 21 199

ChANgES IN ThE vALUE OF INTANgIbLE ASSETS DURINg ThE PERIOD TrAdEmArkSpATENTS, LICENCES ANd CompuTEr SoFTwArE

oThErINTANgIBLEASSETS

ToTAL

NetreportingvalueasofJanuary1,2013 5 400 11 007 2 991 19 398Increasesduetopurchase - 2 418 - 2 418Impairmentlossesrecognisedinprofitorlossduringtheyear

- (36) - (36)

Depreciationandamortisation - (4 121) - (4 121)NetreportingvalueasofDecember31,2013 5 400 9 268 2 991 17 659NetreportingvalueasofJanuary1,2014 5 400 9 268 2 991 17 659Increaseduetobusinesscombinations - 1 473 2 1 475Increasesduetopurchase - 1 680 - 1 680Impairmentlossesrecognisedinprofitorlossduringtheyear

- (5) - (5)

Reversalofrevaluationwrite-offs - 353 - 353Depreciationandamortisation - (4 496) (1) (4 497)NetreportingvalueasofDecember31,2014 5 400 8 273 2 992 16 665

INTANgIbLE ASSETS (CONTINUED) TrAdEmArkSpATENTS, LICENCES ANd CompuTEr SoFTwArE

oThErINTANgIBLEASSETS

ToTAL

Balance as of January 1, 2014Grossreportingvalue 5 400 31 660 4 772 41 832Accumulateddepreciationandimpairment - (22 392) (1 781) (24 173)Netreportingvalue 5 400 9 268 2 991 17 659Balance as of December 31, 2014Grossreportingvalue 5 400 46 634 4 485 56 519Accumulateddepreciationandimpairment - (38 361) (1 493) (39 854)Netreportingvalue 5 400 8 273 2 992 16 665

107

NoTE 3 bUSINESS COmbINATIONS

Goodwillisallocatedtocash-generatingunits(assetsoftheentitiesontheacquisitionofwhichgoodwillappears),asshowninthetablebelow:

Goodwillhasbeenallocatedtothefollowingoperatingsegments:

– Pharmaceuticalwholesale-PLN124,165,000;

– IToperations-PLN1,354,000;

– Outpatientcareclinics-PLN8,615,000.

AsofDecember31,2014theGroupcarriedoutgoodwillandtrademarksimpairmenttests.

Goodwillandtrademarkimpairmenttestswerebasedonforecastedfuturenetcashflowsofthecashgeneratingunits(valueinuse).

Forcash-generatingunitsassignedtothepharmaceuticalwholesalesegmentestimatesoffuturecashflowswerebasedonthefollowingassumptions:

– forecastperiod–5years,

– growthinsalesintheforecastperiodatthelev-elof4%,

– operatingprofitabilityoftheGroupatthepresentlevel,

– after5years,annualcashflowgrowthby2%,

– discountrateat7%.

Forthecash-generatingunitassignedtotheITsegmentestimatesoffuturecashflowswerebasedonthefollow-ingassumptions:

– forecastperiod–3years,

– revenuesandoperatingprofitabilitywereestimat-edbasedoninformationabouttheprojectscarriedoutin2014.andtheprojectsplannedfortheyears2015-2017,

– discountrateat7%.

Followingtheteststheparentdidnotacknowledgeanyreasonstomakeanywrite-downtogoodwill.

ChANgES IN gOODwILL DURINg ThE PERIOD VALuE

GrossbalancesheetvalueasofJanuary1,2013 90 201Otherchangesinthebalancesheetvalue - GrossbalancesheetvalueasofDecember31,2013 90 201GrossbalancesheetvalueasofJanuary1,2014 90 201Increaseduetotheacquisition 43 933GrossbalancesheetvalueasofDecember31,2014 134 134


108FINANCIAL RAPORT

bUSINESS COmbINATIONS DURINg ThE REPORTINg PERIOD

mErgEr wITh ACp phArmA S.A. groupNamesanddescriptionsofmergingentities

OnApril14,2014,theBoardofDirectorsofNEUCAS.A.en-teredwithMediqInternationalB.V.,registeredintheNeth-erlands,intoasharesaleagreementunderwhichNEUCAacquiredfromMediqInternational100%ofthesharesinACPPharmaS.A.withitsregisteredofficeinWarsaw.

OnthesamedaythesubsidiariesoftheparentfollowinganagreementsignedbetweenBRLCenterPolskaSp.zo.o.andNEUCAS.A.signedagreementsunderwhichBRLCent-erPolskaSp.zo.o.withitsregisteredofficeinWrocław,entitycontrolledbyPentaInvestments,acquiredsharesandholdingsinACPPharmagroupcompaniesengagedintheretailsaleofpharmaceuticalproducts(pharmaciesandpharmacyoutlets)fortheaggregatepurchasepriceequaltoPLN231,811,000.FollowingtheagreementNEUCAS.A.remainedtheparentonlyinrelationtoACPPharmagroupcompaniesoperatingintheareaofthewholesaleofpharmaceuticalproducts–ACPPharmaS.A.,HealthMoreSp.zo.o.,CefarmRzeszówSp.zo.o.,LagoSp.zo.o.andthecompanycarryingoutfinancialholdingactivities-ScalaSp.zo.o.

ThecorebusinessoftheacquiredcompaniesaccordingtothePolishClassificationofActivitiesisthewholesaleofpharmaceuticalproductsPKD4646(withtheexceptionofScalawhosecoreactivityincludesfinancialholdingactivi-tiesPKD6420).

Reasonsforthemerger

TheacquisitionofACPPharmagroupcompaniescarryingoutthewholesaleofpharmaceuticalproductswasaimedattakingoverthemarketsharesoftheseentities.Inaddition,thankstoincreasingthescaleofoperationsacompetitive-nesswillimproveandadditionalbenefitsfromthemanufac-turersandsupplierswillfollow.Ultimately,manyoperatingareasoftheacquiredentitieswillbecentralised(backoffice,IT,transport,logisticsandothers)andintegratedinNEUCAandotherentitiesoftheGroupwhichwillcontributetoben-efitsrelatedtotherestructuringoftheseareas.Goodwill

arisingfromtheacquisitionconsistsmainlyofsynergiesandeconomiesofscaleexpectedfromthecombination.

Mergerdateandsettlementmethod

UndertheagreementsenteredintoonApril14,2014NEU-CAS.A.tookovercontrolofACPPharmaS.A.whichbecameasubsidiary,includedintheseconsolidatedfinancialstate-ments.Thecombinationwassettledusingtheacquisitionmethod.TheconsolidatedfinancialstatementspreparedasatDecember31,2014includesresultsofACPPharmaS.A.,Ce-farmRzeszówSp.zo.o.,LagoSp.zo.o.,HealthMoreSp.zo.o.andScalaSp.zo.o.fortheperiodfromthedateofthemergeruntilDecember31,2014.

Thesettlementdescribedaboveisprovisionalduetotheongoingprocessofidentificationandmeasurementofin-tangibleassetsandsettlementsduetoillegalperformanc-esthatoccurredsincethesigningofthepreliminarycon-tractforsaleofsharesuntilthetakeoverofcontrol.Thissettlementmaybeamendedwithin12monthsofthedateofthemerger.

Percentageofvotingequityinstrumentsacquired

FollowingthesharesaleagreementofApril14,2014theCompanyacquired100%ofthesharecapitalinACPPhar-maS.A.,entitlingto100%ofvotesattheentity’sgeneralmeetingofshareholders.

Costofthemerger

Thepurchasepriceandadditionalcostsincludedintheac-quisitionpricerelatedtothetransactionamountedtoPLN200,195,000(ofwhichtransactioncostsofPLN54,000).

Duediligence,consultingandsimilarexpensesweredis-closedunderoverheadexpenses.

PursuanttotheannexofSeptember2,2014totheagree-mentofApril14,2014thepurchasepricewasadjustedbyPLN6,860,000.ThepurchasepricewasincreasedbythepaymentresultingfromthesharepurchaseagreementofOctober3,2014.

ThepurchasepricewaspaidfromNEUCAS.A.ownre-sourcesincludingPLN100,000,000fromloanfacilities.

109

Tosecuretheinvestmentloanagreementapledgewases-tablishedonthegroupofitemsandrightsmakinguptheundertakingsof:CefarmRzeszówSp.zo.o.,HealthmoreSp.zo.o.andLagoSp.zo.o.foruptoPLN150m.

Descriptionoftheactivitiesdisposedby theGroupasa resultofthemerger

OnMarch31,2014,thePresidentoftheOfficeofCompe-titionandConsumerProtectionissuedaconditionalcon-senttotheconcentrationinvolvingtheacquisitionofACPPharmaGroupbyNEUCA.Theconsentwasissuedprovid-edthat:

1. theparentdisposesoftheentiretyofrightsandas-signscommercial,labourandcivillawcontractsrelatedtooperatingapharmaceuticalwholesalewarehouseofACPPharmaS.A.,locatedinBydgo-szcz,within6monthsofthedateoftheconcentra-tionorwithin9monthsinthecaseofseparationofassetssubjecttothisconditionandcontributingthemtoasubsidiaryanddisposaltoathirdpartyentity;

2. theparenttransferstothebuyerofthatwholesalewarehouseanyandalldocumentsandassetsrelat-edtothebusiness;

3. theparentrefrainsfromanyorganisational,per-sonnelandfinancialchangesinthewholesalewarehouse;

4. theparentrefrainsfromanyactioninthemarketinwhichthewholesalewarehouseoperateswhichwouldbeaimedattakingovertheexistingclientsforpharmaceuticalproductsofthewholesaleware-housefortheperiodofoneyearfromthedateoftheconcentration;

5. NEUCAGroup,intheperiodfromtakingovercon-troloverACPPharmagroupbytheparentuntildis-posaloftherightsreferredtoinsec.1,maintainsthevalueofsalesgeneratedbythewholesaleware-houseonthelevelofatleast75%ofitssalesrealisedin2012and2013;

6. intheeventthatassetssubjecttothisconditionarecontributedtoaseparatecompanywhichwillcon-tinuetheactivitiesofthewholesalewarehouseand

ifatemporarysuspensionofthehithertoexistingactivitiesofthewholesalerwarehouseisnecessaryinordertoobtainanyrequiredadministrativeper-mits,theparentisrequiredtomaintainsuppliestopharmaciesoperatedbywholesalewarehouse;

7. NEUCAGroup,intheperiodfromtakingovercon-troloverACPPharmagroupbytheparentuntildis-posaloftherightsreferredtoinsec.1,maintainstheratioofexpendituresonadvertising,promotionandanyotherinformationcampaignscarriedoutbythewholesalewarehouseatalevelnotlessthanwithintheyears2012-2013.

TheparentwasobligedtosubmittothePresidentoftheOfficeofCompetitionandConsumerperiodicinformationabouttheimplementationoftheaboveconditions.

OnDecember10,2014NEUCAS.A.andIntraSp.zo.o.en-teredintoanagreementforsaleofsharesinExigoSp.zo.o.towhichonOctober3,2014previouslyseparatedassetsofACPPharmawholesalewarehouseinBydgoszczwerecontributed.FollowingthedisposalofExigoSp.zo.o.aprovisionforfutureliabilitiesintheamountofPLN3,208,000wascreated.

TheBoardofDirectorsoftheparentdoesnotintendtorestrictanyactivitiesacquiredaspartofthebusinesscombination.


110FINANCIAL RAPORT

Acquiredtradereceivablesandotherreceivablesinclude:

– tradereceivables–PLN130,116,000

– receivablesfromsubsidies,customs,socialsecurityandhealthinsurance–PLN1,675,000

– receivablesfromsub-participation–PLN8,321,000

– otherreceivables–PLN2,751,000

– receivablesfrombonds–PLN41,087,000

– write-offsonreceivables–PLN(9,056,000)

Descriptionof the factors that led to therecogni-tionofgoodwill

TheBoardofDirectorsoftheparentduringthereviewofindividualassets,liabilities,contingentliabilitiesandoth-erpropertyidentifieditemsundisclosedinfinancialstate-mentsoftheentitiesandmeasuredthemasattheacqui-sitiondate.Adjustmentswerepresentedunder“Amountsrecognisedasattheacquisitiondateforeachcategoryofas-sets,liabilitiesandcontingentliabilities”.Thebookvalueofacquiredassetsandliabilitiescorrespondtotheirfairvalue.

Goodwillcalculationsarepresentedinthetablebelow:

HavingregardtothepurchasepricepaidforACPPharmaS.A.shares,goodwillestablishedatthedateoftakingovercontrolamountedtoPLN35,196,000andwasallocatedtothepharmaceuticalwholesalesegment.

Suchgoodwillwillnotconstitutetaxdeductibleexpensesfortaxpurposes.

ACPPharmaGroupresultsfortheperiodfromthedateoftakingovercontroluntilDecember31,2014,included in the consolidated financial results ofNEUCAGroup

IntheperiodfromthedateoftakingovercontroluntilDecember31,2014financialresultsofACPPharmaGroupcompaniesequalledPLN9,390,000,whilesalesrevenuesamountedtoPLN394,236,000.AsthecontrolwastakenonlyoverACPPharmagroupcompaniesoperatingintheareaofwholesaleofpharmaceuticalproducts,theGroupdoesnothaveanydataonsalesrevenuesandfinancialre-sultfortheperiodfromJanuary1untilthedateoftakingovercontrol.

Valueofacquirednetassets 164 999Purchaseprice 200 195Goodwill 35 196

AmOUNTS RECOgNISED AS AT ThE ACqUISITION DATE FOR EACh CATEgORy OF ASSETS, LIAbILITIES AND CONTINgENT LIAbILITIES ADJUSTmENTS TO ACqUIRED NET

ACqUIRED NET ASSETS vALUATION OF ASSETS AT FAIR vALUE

vALUATION OF FUTURE LIAbILITIES

TOTAL AFTER ADJUSTmENTS

Property,plantandequipment 9 962 6 174 - 16 136Intangibleassets 1 474 - - 1 474Investmentproperties 504 - - 504Deferredincometaxassets 4 316 - - 4 316Inventory 167 901 - - 167 901Tradeandotherreceivables 184 814 (9 920) - 174 894Cashandcashequivalents 13 917 3 732 - 17 649Otherassets 56 - - 56Totalassets 382 944 (14) - 382 930Liabilitiesfromdeferredincometax 361 1 178 - 1 539Tradeandotherliabilities 207 165 - - 207 165Provisionsforliabilitiesunderemployeebenefits 4 880 - - 4 880Provisionsforotherliabilities 1 139 - 3 208 4 347Acquirednetassets 169 399 (1 192) (3 208) 164 999

111

ComBINATIoN wITh phArmAdor Sp. z o.o. (prEVIouSLy uNdEr ThE NAmE oF proFmEdICA Sp. z o.o.)

OnFebruary28,2014NEUCAS.A.acquired100%ofsharesinthecapitalofPharmadorSp.zo.o.(previouslyunderthenameofProfmedicaSp.zo.o.)withitsregisteredofficeinChludowo.Thecompanywasacquiredinorderthatitcar-ryoutoperationsintheareaofwholesaleofpharmaceuti-cals.ThepurchasepriceforthesesharesamountedtoPLN136,000,goodwillwasestimatedatPLN122,000andwasallocatedtothesegment:pharmaceuticalwholesale.Thesharepurchaseagreementdoesnotprovideforanycondi-tionalpayments,andallitemsinthefinancialstatementsoftheacquireeareinsignificant.

Intheperiodfromthedateoftakingovercontrolun-tilDecember31,2014,thefinanciallossofPharma-dorSp.zo.o.(previouslyunderthenameofProfmedicaSp.zo.o.)amountedtoPLN(71,000),whilesalesrevenuesequalledPLN114,000.UntilthedateoftakingovercontrolthelossofPharmadorSp.zo.o.amountedtoPLN(6,000),whilesalesrevenuesequalledPLN3,000.

mErgEr wITh ouTpATIENT CArE CLINICS

OnJuly8,2014NeucaMedSp.zo.o.,subsidiaryofNEUCAS.A.acquired100%ofsharesinthecapitalofPraktykaLe-karzyRodzinnychOgnikSp.zo.o.withitsregisteredofficeinPoznań.Thecompanywaspurchasedinordertoimple-menttheGroup’sstrategyofbuildingitsownnetworkofoutpatientcareclinicsinwhichpatientswillhaveaccesstobasicmedicalservices.Thecombinationwassettledus-ingtheacquisitionmethod.ThepurchasepriceforthesesharesamountedtoPLN1,117,000,goodwillwasestimat-edatPLN999,000andwasallocatedtothesegment:out-patientcareclinics.Thesharepurchaseagreementdoesnotprovideforanyconditionalpayments,andallitemsinthefinancialstatementsoftheacquireeareinsignificant.IntheperiodfromthedateoftakingovercontroluntilDe-cember31,2014thefinancialresultoftheacquiredcompanyequalledPLN(15,000),whilesalesrevenuesamountedtoPLN550,000.Untilthedateoftakingovercontrolthefinancialre-sultofPraktykaLekarzyRodzinnychOgnikSp.zo.oamount-edtoPLN12,000,whilesalesrevenuesequalledPLN95,000.

OnJuly28,2014NeucaMedSp.zo.o.,subsidiaryofNEU-

CAS.A.acquired100%ofsharesinthecapitalofProFa-

miliaSp.zo.o.withitsregisteredofficeinDzierżoniów.

Thecompanywaspurchasedinordertoimplementthe

Group’sstrategyofbuildingitsownnetworkofout-

patientcareclinicsinwhichpatientswillhaveaccess

tobasicmedicalservices.Thecombinationwassettled

usingtheacquisitionmethod.Thepurchasepricefor

thesesharesamountedtoPLN2,073,000,goodwillwas

estimatedatPLN2,103,000andwasallocatedtotheseg-

ment:outpatientcareclinics.Thesharepurchaseagree-

mentdoesnotprovideforanyconditionalpayments,

andallitemsinthefinancialstatementsoftheacquiree

areinsignificant.Intheperiodfromthedateoftak-

ingovercontroluntilDecember31,2014thefinancial

resultoftheacquiredcompanyequalledPLN221,000,

whilesalesrevenuesamountedtoPLN913,000.Until

thedateoftakingovercontrolthelossofProFamilia

Sp.zo.o.amountedtoPLN(45,000),whilesalesrevenues

equalledPLN229,000.

OnSeptember5,2014NeucaMedSp.zo.o.,subsidiaryof

NEUCAS.A.acquired100%ofsharesinthecapitalofNZOZ

HelpmedZPCHRim.dr.med.TadeuszaBoczoniaSp. z o.o.

withitsregisteredofficeinTychy.Thecompanywaspur-

chasedinordertoimplementtheGroup’sstrategyofbuild-

ingitsownnetworkofoutpatientcareclinicsinwhich

patientswillhaveaccesstobasicmedicalservices.The

combinationwassettledusingtheacquisitionmethod.The

purchasepriceforthesesharesamountedtoPLN1,778,000,

goodwillwasestimatedatPLN1,791,000andwasallocated

tothesegment:outpatientcareclinics.Thesharepurchase

agreementdoesnotprovideforanyconditionalpayments,

andallitemsinthefinancialstatementsoftheacquireeare

insignificant.Intheperiodfromthedateoftakingover

controluntilDecember31,2014thefinancialresultofthe

acquiredcompanyequalledPLN45,000,whilesalesrev-

enuesamountedtoPLN795,000.Untilthedateoftaking

overcontrolthelossofNZOZHelpmedZPCHRim.dr.med.

TadeuszaBoczoniaSp. z o.o.amountedtoPLN(23,000),

whilesalesrevenuesequalledPLN187,000.


112FINANCIAL RAPORT

OnOctober8,2014NeucaMedSp.zo.o.,subsidiaryofNEU-CAS.A.acquired100%ofsharesinthecapitalofPrzychod-niaRejonowanr3-“Eskulap”ZespółLekarzyRodzinnychSp.zo.o.withitsregisteredofficeinTychy.ThecompanywaspurchasedinordertoimplementtheGroup’sstrategyofbuildingitsownnetworkofoutpatientcareclinicsinwhichpatientswillhaveaccesstobasicmedicalservices.Thecombinationwassettledusingtheacquisitionmeth-od.ThepurchasepriceforthesesharesamountedtoPLN710,000,goodwillwasestimatedatPLN573,000andwasallocatedtothesegment:outpatientcareclinics.Thesharepurchaseagreementdoesnotprovideforanycondition-alpayments,andallitemsinthefinancialstatementsoftheacquireeareinsignificant.IntheperiodfromthedateoftakingovercontroluntilDecember31,2014thefinan-cialresultoftheacquiredcompanyequalledPLN(135,000),whilesalesrevenuesamountedtoPLN380,000.UntilthedateoftakingovercontrolthefinancialresultofPrzychod-niaRejonowanr3-“Eskulap”ZespółLekarzyRodzinnychSp.zo.o.amountedtoPLN33,000,whilesalesrevenuesequalledPLN1,047,000.

OnOctober17,2014NeucaMedSp.zo.o.,subsidiaryofNEU-CAS.A.acquired100%ofsharesinthecapitalofPrzychod-niaLekarskaKonsyliumSp.zo.o.withitsregisteredofficeinGłogów.Thecompanywaspurchasedinordertoim-plementtheGroup’sstrategyofbuildingitsownnetworkofoutpatientcareclinicsinwhichpatientswillhaveac-cesstobasicmedicalservices.Thecombinationwasset-tledusingtheacquisitionmethod.ThepurchasepriceforthesesharesamountedtoPLN2,630,000,goodwillwasestimatedatPLN2,285,000andwasallocatedtotheseg-ment:outpatientcareclinics.Thesharepurchaseagree-mentdoesnotprovideforanyconditionalpayments,andallitemsinthefinancialstatementsoftheacquireeareinsignificant.IntheperiodfromthedateoftakingovercontroluntilDecember31,2014thefinancialresultoftheacquiredcompanyequalledPLN123,000,whilesalesrev-enuesamountedtoPLN721,000.UntilthedateoftakingovercontrolthefinancialresultofPrzychodniaLekarskaKonsyliumSp.zo.o.amountedtoPLN185,000,whilesalesrevenuesequalledPLN2,037,000.

OnDecember18,2014,NeucaMedSp.zo.o.,subsidiaryofNEUCAS.A.acquiredanorganisedpartofundertakingofthecivilpartnershipZespółOpiekiRodzinnej“MójLe-karz”whichoperatesanoutpatientcareclinicinChełmża.TheorganisedpartoftheundertakingZOR“MójLekarz”waspurchasedinordertoimplementtheGroup’sstrategyofbuildingitsownnetworkofoutpatientcareclinicsinwhichpatientswillhaveaccesstobasicmedicalservices.Thecombinationwassettledusingtheacquisitionmeth-od.Thefinancialresultoftheorganisedpartoftheun-dertakingisconsolidatedfromthedateofacquisition.ThepurchasepriceforthesesharesamountedtoPLN884,000,goodwillwasestimatedatPLN864,000andwasallocatedtothesegment:outpatientcareclinics.Thesharepurchaseagreementdoesnotprovideforanyconditionalpayments,andallitemsinthefinancialstatementsoftheorganisedpartoftheundertakingareinsignificant.IntheperiodfromthedateoftakingovercontroluntilDecember31,2014thefinancialresultoftheacquiredorganisedpartoftheundertakingequalledPLN11,000,whilesalesrevenuesamountedtoPLN32,000.

Descriptionofthefactorsthatledtotherecognitionofgoodwill

TheBoardofDirectorsoftheparentcalculatedgoodwillasatthedateoftakingcontrolovertheoutpatientcareclin-ics.Whenreviewingindividualassets,liabilities,contin-gentliabilitiesandotherpropertynoitemsundisclosedinthefinancialstatementsofthesubsidiarieswereidentified.Thebookvalueofacquiredassetsandliabilitiescorrespondtotheirfairvalue.InvestmentsinbasicmedicalcareareapartoftheGroup’sstrategyofbuildingitsownnetworkofoutpatientcareclinics.

Suchgoodwillwillnotconstitutetaxdeductibleexpensesfortaxpurposes.

113

Theabovesettlementareprovisionalonlyduetotheongo-ingprocessofidentificationandvaluationoftheacquiredassetsandliabilities.Thesesettlementsmaybeadjustedwithin12monthsofthedateofthemerger.

Thetablebelowpresentsvaluesofthecategoriesofassetsandliabilitiesoftheacquiredcompaniesasatthedateoftakingovercontrol:

PLR O

gnik

Sp. z

o.o.

Pro F

amilia

Sp. z

o.o.

NzOz

helpm

ed zP

ChR

im. d

r. med

. T. b

oczo

nia Sp

. z o.o

.

Esku

lap Sp

. z o.o

.

Kons

ylium

Sp. z

o.o.

zOR „

mój le

karz”

Property,plantandequipment - - 169 64 82 19

Inventory 4 6 19 7 - - Tradeandotherreceivables 91 103 301 119 186 - Cashandcashequivalents 65 55 93 19 200 1

Otherassets - - 3 2 1 - Totalassets 160 164 585 211 469 20Creditsandloans - 80 288 - - - Tradeandotherliabilities 42 114 310 66 124 - Provisionsforotherliabilities - - - 8 - - Acquirednetassets 118 (30) (13) 137 345 20Purchaseprice 1 117 2 073 1 778 710 2 630 884Goodwill 999 2 103 1 791 573 2 285 864


114FINANCIAL RAPORT

NoTE 4 PROPERTy, PLANT AND EqUIPmENT AND INvESTmENT PROPERTIES

PROPERTy, PLANT AND EqUIPmENT AS oFDECEmbER 31, 2014

AS oFDECEmbER 31, 2013

Land 21 991 21 150Buildingsandstructures 153 382 145 754Machineryandequipment 64 482 65 511Vehicles 16 574 14 034Othertangibleassets 3 116 3 044Netreportingvalue 259 545 249 493Tangibleassetsinconstruction 15 960 5 210Totaltangibleassets 275 505 254 703

AsofDecember31,2014property,plantandequipmentinconstructionrelatetothefollowinggroupsofassets:

• Buildingsandstructures-PLN8,554,000• Machineryandequipment-PLN6,463,000• Vehicles–PLN524,000• Otherproperty,plantandequipment-PLN419,000

AsofDecember31,2013property,plantandequipmentinconstructionrelatetothefollowinggroupsofassets:

• Buildingsandstructures-PLN1,220,000• Machineryandequipment-PLN3,083,000• Vehicles–PLN901,000.• Othertangibleassets-PLN6,000.

Thegrossbalancesheetvalueofall,fullydepreciatedprop-erty,plantandequipmentoftheGroupasofDecember31,2014amountstoPLN33,642,000.

Thegrossbalancesheetvalueofall,fullydepreciatedprop-erty,plantandequipmentoftheGroupasofDecember31,2013amountstoPLN35,157,000.

Thevalueoffinancingcostscapitalisedinthevalueofprop-erty,plantandequipmentoftheGroupasofDecember31,2014amountstoPLN74,000.

115

ChANgES IN PROPERTy, PLANT AND EqUIPmENT LANDbUILDINgS AND STRUC-TURES

mAChINERy AND EqUIP-mENT

vEhICLESOThER TANgIbLE ASSETS

TOTAL

NetreportingvalueasofJanuary1,2013 21 150 150 261 61 184 11 460 4 402 248 457Increasesduetopurchase - 2 412 12 893 1 032 933 17 270Increasesduetoleasecontracts - - - 5 119 - 5 119Decreasesduetodisposal - - (2) (469) (3) (474)Decreasesduetoliquidation - (461) (423) (67) (65) (1 016)Depreciationandamortisation - (6 458) (8 141) (3 041) (2 223) (19 863)NetreportingvalueasofDecember31,2013 21 150 145 754 65 511 14 034 3 044 249 493NetreportingvalueasofJanuary1,2014 21 150 145 754 65 511 14 034 3 044 249 493Increaseduetobusinesscombinations 1 084 12 799 389 600 1 587 16 459Decreasesduetodisposalofthesubsidiary - - (62) (4) (40) (106)Increasesduetopurchase - 1 883 8 894 3 451 811 15 039Increasesduetoleasecontracts - - - 3 012 - 3 012Decreasesduetodisposal (224) (820) (4) (1 207) (250) (2 505)

Decreasesduetoliquidation - (85) (784) (85) (1) (955)Reversalofrevaluationwrite-offs - - 681 62 1 525 2 268Depreciationandamortisation (19) (6 149) (10 184) (3 289) (3 502) (23 143)Otherchanges - - 41 - (58) (17)NetreportingvalueasofDecember31,2014 21 991 153 382 64 482 16 574 3 116 259 545

PROPERTy, PLANT AND EqUIPmENT (CONTINUED)LAND bUILDINgS AND

STRUCTURESmAChINERy AND EqUIPmENT

vEhICLESOThER TANgIbLE ASSETS

TOTALSPECIFICATIONBalance as of January 1, 2014Grossreportingvalue 21 150 182 415 102 814 27 609 24 249 358 237Accumulateddepreciation - (36 661) (37 303) (13 575) (21 205) (108 744)Netreportingvalue 21 150 145 754 65 511 14 034 3 044 249 493Balance as of December 31, 2014Grossreportingvalue 22 384 198 061 119 251 31 611 49 280 420 587Accumulateddepreciation (393) (44 679) (54 769) (15 037) (46 164) (161 042)Netreportingvalue 21 991 153 382 64 482 16 574 3 116 259 545


116FINANCIAL RAPORT

TANgIBLE ASSETS ThE LEgAL TITLE To whICh IS rESTrICTEd ANd TANgIBLE ASSETS BEINg CoLLATErALS For LIABILITIES

Thenetbalancesheetvalueofproperty,plantandequip-mentusedunderleasecontractsasofDecember31,2014amountstoPLN109,146,000andasofDecember31,2013toPLN116,702,000.

AsofDecember31,2014thevalueofproperty,plantandequipmentpledgedascollateralsforcreditagreementsisPLN22,230,000.

AsofDecember31,2013theGrouphadnocollateralsforcreditagreementsestablishedonproperty,plantandequipment.

ThE VALuE oF CoNTrACTuAL CommITmENTS For ThE FuTurE ACquISITIoN oF propErTy, pLANT ANd EquIpmENT

Theamountofcontractualcommitmentstoacquireprop-erty,plantandequipmentinthefutureasofDecember31,2014amountstoPLN315,000andasofDecember31,2013equalledPLN4,768,000.

INvESTmENT PRORPERTIES vALUE

NetvalueasofJanuary1,2013 8 477Decreasesduetodisposal (527)Depreciationandamortisation (292)NetvalueasofDecember31,2013 7 658NetvalueasofJanuary1,2014 7 658Acquisitionofthepropertyaspartofabusinesscombination 504Increasesduetopurchasesofproperty 11 530Depreciationandamortisation (283)NetvalueasofDecember31,2014 19 409Balance as of January 1, 2014Grossbalancesheetvalue 9 936Accumulateddepreciationandimpairment (2 278)Netbalancesheetvalue 7 658Balance as of December 31, 2014Grossbalancesheetvalue 21 970Accumulateddepreciationandimpairment (2 561)Netbalancesheetvalue 19 409

Fairvaluesofinvestmentpropertiesareclosetotheirre-portingvalues.

IntheperiodfromJanuary1toDecember31,2014theGroupreportedintheprofitandlossandothercompre-hensiveincomeexpensesconcerningtheaboveinvestmentpropertiesintheamountofPLN645,000whileintheperi-odfromJanuary1untilDecember31,2013theyamountedtoPLN698,000

117

NoTE 5 FINANCIAL ASSETS

LONg-TERm FINANCIAL ASSETS DECEmbER 31, 2014 dECEmBEr 31, 2013Financialassetsatfairvaluethroughprofitorloss 235 224Totalfinancialassets 235 224

FINANCIAL ASSETS AT FAIR vALUE ThROUgh PROFIT OR LOSSA DECEmbER 31, 2014 dECEmBEr 31, 2013Investmentfundunits 235 224Totalfinancialassetsatfairvaluethroughprofitorloss 235 224

long-term 235 224

ThesefinancialassetsoftheGroupareclassifiedintothelevel1ofthefairvaluehierarchy.

ChANgE IN ThE bALANCE OF FINANCIAL ASSETS AT FAIR vALUE ThROUgh PROFIT OR LOSS

FROm JANUARy 1 TO DECEmbER 31, 2014

From JANuAry 1 To dECEmBEr 31, 2013

Openingbalance 224 220Valuationreportedthroughprofitorloss 11 4Closingbalance 235 224


118FINANCIAL RAPORT

NoTE 6 RECEIvAbLES

TheGrouphasnolong-termtradereceivablesandotherreceivablesincurrenciesotherthanPLN.

LONg-TERm TRADE RECEIvAbLES AND OThER RECEIvAbLES DECEmbER 31, 2014 dECEmBEr 31, 2013

Receivablesonsub-participationagreements 4 531 - Securitydepositforrentofthepremises 3 - Loansgranted 14 724 21 318Totallong-termreceivables 19 258 21 318

ShORT-TERm TRADE RECEIvAbLES AND OThER RECEIvAbLES DECEmbER 31, 2014

dECEmBEr 31, 2013

Tradereceivablesfromotherentities 888 719 686 362Receivablesundertaxes,customsdutiesandsocialandhealthinsuranceandotherbenefits

53 362 29 105

Receivablesclaimedatcourt 18 181 23 003- from related entities 997 997- from other entities 17 184 22 006Receivablesunderrepurchaseddebtclaims 4 873 3 664Receivablesundersaleoftangibleassetsfromotherentities 735 1Otherreceivablesfromotherentities 16 077 13 076Otherreceivables-thirdpartybillsofexchange 985 - Bidbondreceivables 48 103Loansgranted 38 935 44 932- to related parties 806 806- to other entities 38 129 44 126Receivablesonsub-participation 3 038 - Grosstradereceivablesandotherreceivables 1 024 953 800 246Revaluationwrite-offstoreceivables (66 715) (59 322)Nettradereceivablesandotherreceivables 958 238 740 924

REvALUATION wRITE-OFFS TO ShORT-TERm TRADE RECEIvAbLES AND OThER RECEIvAbLES FROm JANUARy 1 TO DECEmbER 31, 2014


Openingbalance 59 322 55 865Write-downsmadeinthereportingperiod 10 411 8 962Write-downsreleasedinthereportingperiod (3 686) (946)Write-downsusedinthereportingperiod (8 340) (4 559)Otherchanges (48) - Increasesduetochangestotheperimeterofconsolidation 9 056 - Closingbalance 66 715 59 322

119

AS oF DECEmbER 31, 2014 AS oF dECEmBEr 31, 2013

ShORT-TERm TRADE RECEIvAbLES AND OThER RECEIvAbLES by CURRENCy

IN ThE ForEIgN CurrENCy

AFTEr CoNVErSIoN INTo pLN

IN ThE ForEIgN CurrENCy

AFTEr CoNVErSIoN INTo pLN

PLN 1 023 047 1 023 047 799 473 799 473EUR 267 1 138 108 451CHF 103 366 103 322GBP 74 402 - - Total x 1 024 953 x 800 246

ShORT-TERm TRADE RECEIvAbLES AND OThER RECEIvAbLES – AgINg ANALySIS

DECEmbER 31, 2014

dECEmBEr 31, 2013

Overduetradereceivables 224 138 186 939 to 1 month 120 397 92 194 between 1 month and 6 months 55 656 40 134 between 6 months and 1 year 8 780 23 409 more than 1 year 81 709 64 626 write-downs of overdue receivables (42 404) (33 424)Otheroverdueshort-termreceivables 26 822 26 284 to 1 month 1 692 1 811 between 1 month and 6 months 5 614 6 701 between 6 months and 1 year 6 483 7 360 more than 1 year 37 344 36 310 write-downs of overdue receivables (24 311) (25 898)Grossoverduereceivables 317 675 272 545Write-downsofoverduereceivables (66 715) (59 322)Netoverduereceivables 250 960 213 223

Receivablesfromrelatedpartiesincludereceivablesfromtheentityrelatedthroughamemberofkeypersonnel.Betweenthoseentitiestherearehowevernocapitalassociations.

ShORT-TERm TRADE RECEIvAbLES AND OThER RECEIvAbLES FROm RELATED PARTIES

DECEmbER 31, 2014

dECEmBEr 31, 2013

Othershort-termreceivables 997 997Fromotherrelatedpartiesnotcovered bytheconsolidatedfinancialstatements

997 997

Loansgranted 806 806Otherrelatedpartiesnotcovered bytheconsolidatedfinancialstatements

806 806

Revaluationwrite-offstoreceivablesfromrelatedentities (1 803) (1 803)Total - -


120FINANCIAL RAPORT

ShORT-TERm TRADE RECEIvAbLES AND OThER RECEIvAbLES CLAImED AT COURT

DECEmbER 31, 2014

dECEmBEr 31, 2013

Tradereceivables,including: 8 355 8 170 gross value of receivables claimed at court 14 396 16 870 write-downs on disputable receivables (6 041) (8 700)

Othershort-termreceivables,including: 2 876 4 789 gross value of receivables claimed at court 3 785 6 133 write-downs on disputable receivables (909) (1 344)

Grossreceivablesclaimedatcourt 18 181 23 003Write-downsondisputablereceivables (6 950) (10 044)

Netvalueofreceivablesclaimedatcourt 11 231 12 959

ChANgE IN ThE bALANCE OF gRANTED LOANSFROm JANUARy 1 TO DECEmbER 31, 2014


Openingbalance 61 800 77 832Granting 21 970 28 674Interestaccruedbasedoneffectiveinterestrate 3 962 6 832Impairmentlosses (1 929) (591)Reclassificationfromotherreceivables 103 106Repayments (37 961) (51 016)Write-downs-reclassificationfromotherreceivablesandotherchanges (251) (37)Closingbalance 47 694 61 800 long-term 14 724 21 318 short-term 32 970 40 482

Thebalancesheetvalueoffinancialassetsfromgrant-edloanswhosematuritieswererenegotiatedandwhichotherwisewouldbeconsideredoverdueintheperiodfromJanuary1toDecember31,2014amountstoPLN1,047,000andPLN2,791,000intheperiodfromJanuary1toDecember31,2013.

Intheeventwhenthevaluationdoesnotdepartfromthebalancesheetvalueofrespectiveitems,theGroupreportsloansattheirnominalvalue.Whenaccruinginterestonloansattheendofeachmonth,adifferencearisingfromtheapplicationoftheeffectiveinterestrateisinsignificant.

ThemostimportantitemwithintheGroup’sreceivablesaretradereceivablesfromsalesofpharmaceuticalproducts.

Pharmaceuticalproductsaresoldontermsandconditions

whicharedifferentfromstandardmarketterms.Inmostcases,paymentdatesfallonwithin0-60days.InrelationtocustomersdefaultingwithpaymentstheGroupeitheraccruesinterestorreducestheamountofgranteddis-counts,andrarelychargesinterestondeferredpayments.

Duetothenumberofcustomers(over10,000),creditriskisverydiversifiedwhich,alongwithcollateralsforreceiva-blesprovidedinmanycases,theadvancedsystemforcreditassessment,andmonitoringandrecoveryofreceivables,resultsinalowcreditriskrelatedtotradereceivables.

Owingtothematurityperiod,shortandstandardforthedistributionofpharmaceuticals,theGroupdoesnotdis-counttradereceivables.

Tradereceivablesbeingacollateralforbankcredits:

DECEmbER 31, 2014 dECEmBEr 31, 2013Assignmentsofreceivablesascreditcollaterals 207 000 212 000

121

NoTE 7 INvENTORy

Thevalueofwrite-downsoninventory,includedintheprofitandlossandothercomprehensiveincomein2014,isPLN604,000,whilein2013itwasPLN554,000.

NoTE 8 OThER ASSETS

STRUCTURE OF INvENTORy DECEmbER 31, 2014

dECEmBEr 31, 2013

Materials 104 78Goods 1 046 853 753 264Advancesfordeliveries 1 222 1 453Totalinventory,including 1 048 179 754 795- balance sheet value of inventory being a collaterals for liabilities 472 814 484 814

ShORT-TERm PREPAymENTS DECEmbER 31, 2014

dECEmBEr 31, 2013

Insurance 1 259 1 250Electricenergy,rent,subscriptions,telephonecalls 335 236ITservices,licenses,software 1 225 841Commissions 411 - Advertisingmaterials 296 79Others 597 237Total 4 123 2 643


122FINANCIAL RAPORT

NoTE 9 FINANCIAL INSTRUmENTS

CApITAL mANAgEmENT

TheGroup’sobjectiveinmanagingcapitalriskistoprotecttheGroup’sabilitytocontinueitsactivitysothatsharehold-erreturnandbenefitsforotherstakeholdersmaybegener-atedandsothatthebestpossiblecapitalstructuremaybemaintainedforthepurposeofreducingitscost.

TomaintainoradjustthestructureofcapitaltheGroupmaychangetheamountofanydeclareddividendstobepaidtoshareholders,repaycapitaltoshareholders,issuenewsharesorsellassetsinordertoreducedebts.

TheGroupmonitorsthecapitalusingthedebtratio.Thisratioiscalculatedasnetdebttototalcapitalratio.Netdebtiscalculatedasthetotalofcreditsandloans(includingcur-rentandlong-termcreditsandloansreportedinthecon-solidatedstatementoffinancialposition),leaseliabilities,lesscashandcashequivalents.Thetotalvalueofcapitaliscalculatedasequityreportedintheconsolidatedstatementoffinancialposition.

wSKaŹNiK ZadŁUŻeNia Netto do KapitaŁÓw wŁaSNYChSTAN NA DECEmbER 31, 2014

STAN NA dECEmBEr 31, 2013

Zadłużenie 215 599 170 525Środkipieniężneiichekwiwalenty (32 098) (4 521)

Zadłużenienetto 183 501 166 004Kapitałwłasny 467 421 410 656Stosunekzadłużenianettodokapitałuwłasnego 0,4 0,4

123

CATEgORIES OF FINANCIAL INSTRUmENTS DECEmbER 31, 2014

dECEmBEr 31, 2013

FinancialassetsStatedatfairvaluethroughprofitorloss 235 224Loansandreceivables(includingcashandcashequivalents) 956 232 737 658Available-for-salefinancialassets - 105

956 467 737 987

Reportedinthestatementoffinancialpositionas:Financialassetsatfairvaluethroughprofitorloss 235 224Available-for-salefinancialassets - 105Long-termtradereceivablesandotherreceivables 19 258 21 318Short-termtradereceivablesandotherreceivables 904 876 711 819Cashandcashequivalents 32 098 4 521

956 467 737 987

FinancialliabilitiesStatedatfairvaluethroughprofitorloss 92 92Otherfinancialliabilities 2 072 881 1 479 753

2 072 973 1 479 845

Reportedinthestatementoffinancialpositionas:Long-termcreditsandloans 117 181 17 271Otherlong-termfinancialliabilities 44 232 53 292LiabilitiesunderInterestRateSwaps(IRS) 5 560 490Tradeliabilitiesandotheroperatingliabilities 1 851 814 1 308 830Short-termcreditsandloans 43 143 85 974Othershort-termfinancialliabilities 11 043 13 988

2 072 973 1 479 845

AsatDecember31,2014andasatDecember31,2013thefinancialliabilitiesmeasuredatfairvaluethroughprofitorlossincludethevaluationofderivativesuntilthedateofestablishingarespectivehedgingrelationship.

IntheopinionoftheCompany’sBoardofDirectors,thebalancesheetvalueoffinancialassetsandliabilitiesreflectstheirfairvalue.


124FINANCIAL RAPORT

ITEmS OF REvENUE, ExPENSES, PROFITS AND LOSSES RECOgNISED IN ThE PROFIT AND LOSS AND OThER COmPREhENSIvE INCOmE by CATEgORy OF FINANCIAL INSTRUmENTS

LoANS ANd rECEIVABLES

STATEd AT FAIr VALuE Through proFIT or

LoSS

oThEr FINANCIAL LIABILITIES ToTAL

DataasatDecember31,2014Interestincome(costs) 18 871 (15 113) 3 758Gains(losses)onexchangeratedifferences - (251) (251)Creationofrevaluationwrite-offstoreceivables andreceivableswritten-down

(12 845) - (12 845)

Reversalofrevaluationwrite-offs 3 575 - 3 575Gains/lossesonvaluationatfairvalueinthefinancialresult - 37 37Gains/lossesonvaluationatfairvalue inothercomprehensiveincome

- (5 097) (5 097)

Otherrevenues/expenses - (1 290) (1 290)Totalnetprofit/loss 9 601 (21 714) (12 113)

AsofDecember31,2013Interestincome(costs) 18 270 - (13 776) 4 494Gains(losses)onexchangeratedifferences - - (183) (183)Creationofrevaluationwrite-offstoreceivables andreceivableswritten-down

(11 342) - - (11 342)

Reversalofrevaluationwrite-offs 946 - - 946Gains/lossesonvaluationatfairvalueinthefinancialresult - (92) 21 (71)Gains/lossesonvaluationatfairvalue inothercomprehensiveincome

- - (415) (415)

Otherrevenues/expenses - - (1 439) (1 439)Totalnetprofit/loss 7 874 (92) (15 792) (8 010)

FINANCIAL rISk mANAgEmENT

TheGroupmonitorsandmanagesfinancialriskoftheGroup’soperationsbyanalysingthedegreeofexposureandrisklevel.TherisktowhichtheGroupisexposedin-cludesmarketrisk(suchascurrencyrisk,interestrateriskatfairvalueandpricerisk)aswellascreditriskandliquid-ityrisk.

CREDIT RISK

MainfinancialassetsexposedtothecreditriskandheldbytheGroupareloansandtradereceivables.

Theamountspresentedinthestatementoffinancialposi-tionarerespectivevalueslessanywrite-downsestimatedonthebasisofpastandpresentcooperationandassess-

mentofcurrentfinancialpositionandofanycollateralsdelivered.Maximumexposuretocreditriskisthebal-ancesheetvalueoffinancialassetsexcludingthevalueofcollaterals.

Creditriskoftradereceivablesisanalysedonacurrentba-sisbyaunitdesignatedforthispurpose.EverycustomeroftheGrouphasacertaincreditlimitgrantedonthebasisofthepreviouscooperation,assessmentofitsfinancialca-pacityandproposedcollaterals.Inviewofthedeteriorat-ingfinancialpositionofsomeclientsdueto,amongothers,theintroductionfromJanuary1,2012ofnewlegislationsfordrugreimbursements(theActofMay12,2011onthereimbursementofmedicines,specialpurposefoodstuffsandmedicaldevices)adifficultperiodforallparticipantsofthepharmaceuticalmarketstarted.TheActintroduced

125

detrimentalchangesforthepharmaceuticalmarketrelat-edtoreimbursabledrugswhichresultedinanincreaseinthecreditriskoftheGroup.Inresponsetothedeterioratingsituationonthemarket,itwasdecidedtotoughenuptherecoverypolicyoftheGroup–startingfrom2013conten-tiousissuesarequickersubmittedtotothecourtsinordertoacceleratetheexecutionfromcollaterals.

LoansaregrantedtocustomersinaccordancewiththeGroup’sinternalprocedures.Undersucheachofthecoun-terpartieshasalimitdefiningtheupperlimitoftheGroup’sexposureonloansandreceivables.Inthecaseofgreaterloansaswellaswhenlimitsdeterminedforagivencus-tomerareexceeded,eachnewloanbeforeitisgranteditisprecededbyathorougheconomic&financialanalysis.TheloanapplicationisinsuchacasesubjecttoapprovalbytheCreditCommittee.Arepaymentofallloansissecuredonassetsand/orbypersonalsureties.

Receivablesundergrantedloansincludemainlyloansgrantedtopharmaceuticalcustomersforthedevelopmentoftheirbusinessoperations.IntheperiodfromJanuary1toDecember31,2014,theGroupgrantedloansforthetotalamountofPLN21,970,000.

Thekeytermsandconditionsofgrantedloansareasfollows:

1. Lendingperiodfrom6monthsto3years,

2. Grantedamountsofloans–fromseveralthousandstoPLN2,000,000,

3. Fixedinterestrate,

4. Repaymentmaybemadeinfixedinstalments.

Thankstoaconsiderablediversificationofloans,providedcollateralsecuritiesandacontinuousmonitoringofrepay-ments,thecreditriskassociatedwiththeseloansiscon-sideredlow.Theprevioushistoryofrepaymentsoftheseloansconfirmsthisassessment.

INTErEST rATE rISk

TheGroupisexposedtochangesininterestratesundercontractedlong-andshort-termfinancialliabilities.Allfi-nancialliabilitiesoftheGrouparebasedonvariableinter-estrateswithWIBORratesasareference.Anygrowthininter-bankinterestratesmayresultinthegrowthintheGroup’sfinancialexpenses.Inordertohedgetheinterest-rateriskin2013theGroupentersintoIRScontractsunderwhichpaymentsaremadebasedontheratedeterminedunderIRScontractsandavariablerateisreceivedfromtheissuerofIRS(hereinafterreferredtoasthe“Bank”).Inthisway,theGroupreducestheriskofvariableinterestpay-mentsbecauseiteffectivelymakespaymentsbasedonthefixedrate.TheGrouphasapartialimpactonthelevelofapplicableinterestratesthroughoptimisationofworkingcapitalmanagement(levelofinventory,receivablesandli-abilitiesturnover)whichdirectlyaffectsfinancialexposuretodifferentbanks.

Thevastmajorityofloansgrantedtothepharmaciesisbasedonfixedinterestrates.TheGroupperceivesinterestrateriskfortheseloansaslowdueto:

– shortmaturityperiodofloans(onaverageupto24months)

– relativelyhighinterestonloans-from9%.

Inmediumandlongtermgrantedloansonlytoamoderateextentlimittheinterestrateriskundercontractedcredits.


126FINANCIAL RAPORT

SENSITIVITy ANALySIS

Thefollowingsensitivityanalysisshowsimpactofpoten-tialpossiblechangesininterestratesonthefinancialre-sult.Interestliabilitiesbasedonvariableinterestratesasofthelastdayofthereportingperiodamountedto:PLN

215,599,000Theeffectoninterestexpenseswascalculatedbasedonthevalueofthenon-hedgedinterestliabilities(hedgevalueofPLN100,000,000).

Potentialpossiblechangeininterestrates +/-0,50p.p. +/-1,0p.p. +/-1,5p.p.Impactoninterestexpensesincurred inthereportingperiod

+/-0,58m +/-1,16m +/-1,73m

FINANCIAL INSTRUmENTS wITh FIxED AND vARIAbLE INTEREST RATES CARRyINg AmOUNT

DECEmbER 31, 2014

dECEmBEr 31, 2013

FinancialinstrumentswithfixedinterestratesFinancialassets 47 694 61 800

47 694 61 800FinancialinstrumentswithvariableinterestratesFinancialliabilities 215 599 170 525

215 599 170 525

Thesimilarsensitivityanalysisasoftheendofarespec-tivecomparativeperiod,i.e.asofDecember31,2013,ispresentedbelow:

Interestliabilitiesbasedonvariableinterestratesasofthelastdayof the reportingperiodamounted to:PLN170,525,000.Theeffectoninterestexpenseswascalculatedbasedonthevalueofthenon-hedgedinterestliabilities(hedgevalueofPLN100,000,000).

Potentialpossiblechangeininterestrates +/-0,50p.p. +/-1,0p.p. +/-1,5p.p.Impactoninterestexpensesincurred inthereportingperiod

+/-0,35m +/-0,7m +/-1,06m

LIquIdITy rISk

TheGrouppreparesitsbudgetforannualperiodsalongwithanalysesofworkingcapitalturnoverandcashflows.Actualvs.budgetanalysesalongwithcashflowsarere-portedtotheBoardofDirectorsofNEUCAS.A.TheGroupresponds,onanongoingbasis,toanydeviationsfromtheforecastedfinancialresultsaswellascashflowsinordertominimizeallliquidityrisk.

127

AsatDecember31,2014theGrouphadunusedcreditlimitsoncontractedcreditforthetotalamountofPLN307,000,000.

AsatDecember31,2013theGrouphadunusedcreditlimitsoncontractedcreditforthetotalamountofPLN282,634,000.

CurrENCy rISk

TheGroup’scurrencyriskisassociatedmostlywithpur-chasesofcommercialgoodspayableinforeigncurrencies.Theshareofpurchasessettledinforeigncurrenciesinthetotalvalueofpurchasesofcommercialgoodsineachyearlyperiodisrathersmallandequalsapprox.1%ofwhich99%aresettledinEUR.Thesepurchasesarecarriedoutwithdeferredpaymentterms(rangingfrom30to120days)andinthatperiodtheGroupisexposedtorisksofapossiblede-preciationofPLN.Duetoalowcurrencyrisk,ascomparedtosalesvolumes,presently,thisriskisnothedged.Depend-ingonthesituationontheforeigncurrencymarketwhichisconstantlymonitoredtheGroupdoesnotexcludeusingcurrencyhedgingtransactionsinthefuture.

CompArISoN oF FAIr VALuES wITh rEporTINg VALuES

Fairvaluesoffinancialassetsandliabilitiesareclosetotheirreportingvalues.

pLEdgES

ThebalancesheetvalueoftheGroup’sfinancialassetsbe-

ingcollateralsforrepaymentsofanycontractedliabilitiesisPLN207,000,000(tradereceivables).

INFormATIoN oN ThE prICE rISk ASSoCIATEd wITh FINANCIAL INSTrumENTS

AsatDecember31,2014andDecember31,2013theGroupdidnothaveanyfinancialinstrumentswhichwouldin-volvetheriskofimpairmentduetochangesinmarketprices.

IntheperiodfromJanuary1toDecember31,2014theGroupdidnotenterintoanycontractsresultinginconver-sionoffinancialassetsintosecuritiesoranyrepurchasecontracts.

IntheperiodfromJanuary1toDecember31,2014therewerenochangesinmethodsforvaluationoffinancialassets.

InthereportingperiodtheGroupdidnothaveanyfinan-cialliabilitiesheldfortrading.

Since2013theGroupapplieshedgeaccounting.Thevalua-tionofIRScontracts(atfairvalue)isthedifferencebetweentheprojecteddiscountedinterestcashflowsatfixedin-terestrateandvariableinterestratebasedonWIBOR1M.Changesinthefairvalueoffinancialderivativesdesignat-edascashflowhedgesinpartsbeingeffectivehedgesoftheGrouparereportedinothercomprehensiverevenue.Changesinthefairvalueoffinancialderivativesdesignat-edascashflowhedgesinpartsnotbeingeffectivehedgesoftheGrouparereportedunderfinancialrevenuesorex-

INSTRUmENT up To 1 yEAr From 1 To 2 yEArS

From 2 To 3 yEArS

From 3 To 4 yEArS

From 4 To 5 yEArS

morE ThAN 5 yEArS

ToTAL CArryINg AmouNT

ASSETSLoans 34 984 9 439 3 491 1 645 1 314 184 51 057 47 694Tradereceivables 846 314 - - - - - 846 314 846 314Total 881 298 9 439 3 491 1 645 1 314 184 897 371 894 008LIAbILITIESCredits 48 109 46 016 44 771 25 865 5 489 - 170 250 160 324Lease 13 952 9 555 8 085 13 251 10 188 11 631 66 662 55 275Tradeliabilities 1 831 989 - - - - - 1 831 989 1 831 989Total 1 894 050 55 571 52 856 39 116 15 677 11 631 2 068 901 2 047 588


128FINANCIAL RAPORT

pensesofthereportingperiod.IntheperiodfromJanuary1toDecember31,2014theGroupincludedthevaluationofIRStransactionsintheeffectivepartunderothercom-prehensiveincomeatPLN(5,097,000)-PLN(4,128,000)afterdeferredincometax,andinthenon-effectivepartunderfinancialrevenuesatPLN26,000.IntheperiodfromJanu-ary1toDecember31,2013theGroupincludedthevalu-

ationofIRStransactionsintheeffectivepartunderothercomprehensiveincomeatPLN(415,000)-PLN(336,000)af-terdeferredincometax,andinthenon-effectivepartun-derfinancialrevenuesatPLN17,000.

TheeffectsofthevaluationofthederivativeuntilthedateofestablishingahedgingrelationshipintheamountofPLN92,000wereincludedinfinancialexpensesof2013.

TRANSACTION TyPE dATE oF CoNCLuSIoN

hEdgE ESTABLI-ShINg dATE

TrANSACTIoN pErIod

BASE AmouNT

CoNTrACTuAL CLIENT’S INTErEST

rATE

CoNTrACTuAL BANk’S INTErEST

rATE

FAIr VALuE

ASSETS LIABILITy

IRStransaction Feb.14,2013 Feb.21,2013 5years 50 000 3,61% WIBOR1M - 2 781IRStransaction Feb.21,2013Feb.21,2013 5years 50 000 3,57% WIBOR1M - 2 687

Total - 5 468

TheabovederivativesoftheGroupareclassifiedintothelevel2ofthefairvaluehierarchy.

TheabovederivativesoftheGroupareclassifiedintothelevel2ofthefairvaluehierarchy.

CASh AND CASh EqUIvALENTS DECEmbER 31, 2014

dECEmBEr 31, 2013

CashinPLN 31 996 4 494CashinEUR 102 27Total 32 098 4 521

129

NoTE 10 OThER ShORT-TERm AND LONg-TERm FINANCIAL LIAbILITIES

LONg-TERm FINANCIAL LIAbILITIES DECEmbER 31, 2014

dECEmBEr 31, 2013

Credits 117 181 17 271Financeleaseliabilities 44 232 53 292Totallong-termfinancialliabilities 161 413 70 563

ShORT-TERm FINANCIAL LIAbILITIES DECEmbER 31, 2014

dECEmBEr 31, 2013

Credits 43 143 85 974Financeleaseliabilities 11 043 13 988Totalfinancialliabilities 54 186 99 962

CREDITS AS OF DECEmbER 31, 2014

AmouNToF LIABILITy

INTErEST rATENomINAL EFFECTIVE

PekaoS.A.Warszawa -investmentcredit 17 271 WIBOR1M+margin WIBOR1M+margin+commission


BankMillenniumS.A. -long-termcredit 50 000 WIBOR1M+margin WIBOR1M+margin+commission

BankPekaoS.A. 3 579 WIBOR3M+margin WIBOR3M+margin+commissionTotalcredits 160 324 x x

CREDITS AS OF DECEmbER 31, 2013

AmouNToF LIABILITy

INTErEST rATE

NomINAL EFFECTIVE

BREBANKS.A. 15 541 WIBORO/N+margin WIBORO/N+margin+commissionBankMillenniumS.A. 21 581 WIBOR1M+margin WIBOR1M+margin+commissionPekaoS.A.Warsaw 19 356 WIBOR1M+margin WIBOR1M+margin+commissionBZWBKS.A. 14 002 WIBOR1M+margin WIBOR1M+margin+commissionBankDnBNORDPOLSKAS.A.Warsaw 7 153 WIBOR1M+margin WIBOR1M+margin+commission


PekaoS.A. 1 803 WIBOR1M+margin WIBOR1M+margin+commissionMillenniumS.A. 1 930 WIBOR1M+margin WIBOR1M+margin+commissionTotalcredits 103 245 x x

mATURITIES OF CREDITS AND LOANS DECEmbER 31, 2014

dECEmBEr 31, 2013

Short-termcreditsandloans 43 143 85 974Long-termcreditsandloans 117 181 17 271 maturing within from 1 year to 2 years 43 142 4 608 maturing within from 2 years to 5 years 74 039 12 663Totalcreditsandloans 160 324 103 245

AllthecreditsandloanscontractedbytheGrouparedenominatedinPLN.


130FINANCIAL RAPORT

LONg-TERm CREDITS AND LOANS AS OF DECEmbER 31, 2014

NAmE ANd rEgISTErEd oFFICE oF ThE ENTITy

ORIgINAL CONTRACTUAL

AmOUNT OF CREDIT/LOAN

OUTSTANDINg AmOUNT OF

CREDIT/LOANmATurITy CoLLATErALSpLN pLN

Bank PekaoS.A. 46 500 12 663 30-09-2018

1.RegisteredpledgeforuptoPLN65,564,000alongwiththeassignmentofrightsundertheinsurancepolicy2Authorisationforthebankaccount3.Statementonsubmissiontoenforcement

Bank PekaoS.A. 100 000 68 421 17-02-2019

1.Financialpledgeandregisteredpledgeonshares, 2.mortgageuptoPLN100,000,000onpropertyinRzeszówtogetherwithassi-gnmentofrightsundertheinsurancepolicy 3.registeredpledgeonagroupofitemsandrightsmakinguptheundertakingsofCefarmRzeszówSp.zo.o.,HealthmoreSp.zo.o.,LagoSp.zo.o., 4.financialpledgeandregisteredpledgeontheborrower’saccountsheldattheBanktogetherwithauthorisationsforthebankaccounts, 5.financialpledgeandregisteredpledgeontheaccountsofCefarmRzeszówSp.zo.o.,HealthmoreSp.zo.o.,LagoSp.zo.o.togetherwithauthorisationsforthebankaccounts, 6.accessiontodebtbyCefarmRzeszówSp.zo.o.,HealthmoreSp.zo.o.,LagoSp.zo.o.togetherwiththestatementofentitiesaccessingtodentonsubmissiontoenforcementunderArt.97sec.1oftheBankingLawandacknowledgementofjointandseveralliabilitiesundertheAgreementoftheentitieslistedinthissectionjointlywiththeBorrower, 7.unconfirmedassignmentofclaimsfromcontractsacceptedbytheBankente-redintobyACPPharmaandSubsidiaries, 8.theBorrower’sstatementonsubmissiontoenforcementunderArt.97 sec.1oftheBankingLaw, 9.authorisationfortheBorrower’sbankaccountsheldattheBank

Bank MillenniumS.A. 50 000 33 360 23-10-2017

1.AssignmentofreceivablesforuptoPLN89,500,0002.transferoftitleforuptoPLN89,500,000toinventoryownedbytheborrowerand/orProsperS.A.alongwiththeassignmentofrightsunderinsurancepolicy,3.Authorisationforthebankaccount4.Statementonsubmissiontoenforcement(jointsecurityfortheworkingcapitalloanandtheoverdraftfacility)

BankPekaoS.A. 4 000 2 737 29-03-20191.mortgageforupto6,000,000alongwiththeassignmentofrightsundertheinsurancepolicy;2.statementonsubmissiontoenforcement3.Authorisationforthebankaccount4.suretygrantedbyNeucaS.A.5.StatementonsubordinationofrepaymentsofloansgrantedbyNeucaS.A.

Razem 117 181

LONg-TERm CREDITS AND LOANS AS OF DECEmbER 31, 2013






BankPekaoS.A. 46 500 17 271 30-09-20181.RegisteredpledgeforuptoPLN65,564,000alongwiththeassignmentofrightsundertheinsurancepolicy2.Authorisationforthebankaccount3.Statementonsubmissiontoenforcement

Razem 17 271

131

ShORT-TERm CREDITS AND LOANS AS OF DECEmbER 31, 2014






PEKAOS.A. Warszawa 91 500 - 30-09-2015

1.AssignmentofreceivablesforuptoPLN7,500,0002.Registeredpledgeoninventoryforuptoatleast150%ofthenominalcreditvaluealongwiththeassignmentofrightsunderinsurancepolicy3.Authorisationforthebankaccount4.Statementonsubmissiontoenforcement

mBankS.A. Warszawa 75 000 - 30-06-2016

1.RegisteredpledgeoninventoryforuptoPLN85,000alongwiththeassign-mentofrightsunderinsurancepolicy2.Blankpromissorynotewithablankpromissorynoteagreement3.AssignmentofreceivablesforuptoPLN15,000,0004.Statementonsubmissiontoenforcement

BZWBKS.A. Warszawa 65 000 - 30-06-2015 1.AssignmentofreceivablesforuptoPLN60,000,000

2.RegisteredpledgeforuptoPLN43,000,0003.Authorisationforthebankaccount

Bank MillenniumS.A. 39 500 - 30-05-2015


Bank PekaoS.A. 46 500 4 608 30-09-2018

1.RegisteredpledgeforuptoPLN65,564,000alongwiththeassignmentofrightsundertheinsurancepolicy2.Authorisationforthebankaccount3.Statementonsubmissiontoenforcement

BankDnBNORD POLSKAS.A 35 000 - 30-04-2015

1.RegisteredpledgeforuptoPLN52,5000,000alongwiththeassignmentofrightsundertheinsurancepolicy2.Authorisationforthebankaccount3.AssignmentofreceivablesforuptoPLN35,000,000

Bank PekaoS.A. 100 000 21 053 17-02-2019

1.Financialpledgeandregisteredpledgeonshares, 2.mortgageuptoPLN100,000,000onpropertyinRzeszówtogetherwithassi-gnmentofrightsundertheinsurancepolicy 3.registeredpledgeonagroupofitemsandrightsmakinguptheundertakingsofCefarmRzeszówSp.zo.o.,HealthmoreSp.zo.o.,LagoSp.zo.o., 4.financialpledgeandregisteredpledgeontheborrower’saccountsheldattheBanktogetherwithauthorisationsforthebankaccounts, 5.financialpledgeandregisteredpledgeontheaccountsofCefarmRzeszówSp.zo.o.,HealthmoreSp.zo.o.,LagoSp.zo.o.togetherwithauthorisationsforthebankaccounts, 6.accessiontodebtbyCefarmRzeszówSp.zo.o.,HealthmoreSp.zo.o.,LagoSp.zo.o.togetherwiththestatementofentitiesaccessingtodentonsubmissiontoenforcementunderArt.97sec.1oftheBankingLawandacknowledgementofjointandseveralliabilitiesundertheAgreementoftheentitieslistedinthissectionjointlywiththeBorrower, 7.unconfirmedassignmentofclaimsfromcontractsacceptedbytheBankente-redintobyACPPharmaandSubsidiaries, 8.theBorrower’sstatementonsubmissiontoenforcementunderArt.97sec.1oftheBankingLaw, 9.authorisationfortheBorrower’sbankaccountsheldattheBank



Bank PekaoS.A. 4 000 842 29-03-2019

1.mortgageforupto6,000,000alongwiththeassignmentofrightsundertheinsurancepolicy;2.statementonsubmissiontoenforcement3.Authorisationforthebankaccount4.suretygrantedbyNeucaS.A.5.StatementonsubordinationofrepaymentsofloansgrantedbyNeucaS.A.

ING BankŚląskiS.A. 1000 - 28-02-2015 SuretygrantedbyNEUCAS.A.

Razem 43 143


132FINANCIAL RAPORT

AlltheleaseagreementsenteredintobytheGroupweredenominatedinPLN.

ShORT-TERm CREDITS AND LOANS AS OF DECEmbER 31, 2013






PEKAOS.A.Warszawa 95 500 19 356 30-09-2014

1.AssignmentofreceivablesforuptoPLN7,5002.Registeredpledgeoninventoryforuptoatleast150%ofthenominalcreditvaluealongwiththeassignmentofrightsunderinsurancepolicy3.Authorisationforthebankaccount4.Statementonsubmissiontoenforcement

BREBankS.A.Warszawa 75 000 15 541 26-06-2014

1.RegisteredpledgeoninventoryforuptoPLN85,000alongwiththeassignmentofrightsunderinsurancepolicy2.Blankpromissorynotewithablankpromissorynoteagreement3.AssignmentofreceivablesforuptoPLN15,0004.Statementonsubmissiontoenforcement

BZWBKS.A.Warszawa 65 000 14 002 30-06-2014 1.AssignmentofreceivablesforuptoPLN60,000

2.RegisteredpledgeforuptoPLN43,0003.Authorisationforthebankaccount


1.Assignmentofreceivablesforuptoatleast100%oftheamountoffinancing2.Authorisationforthebankaccount3.Statementonsubmissiontoenforcement4.Transferforupto100%ofthecreditamountofatitletoinventoryownedbytheborrowerand/orProsperS.A.alongwiththeassignmentofrightsunderinsurancepolicy

Bank PekaoS.A. 46 500 4 608 30-09-2018

1.RegisteredpledgeforuptoPLN65,564alongwiththeassignmentofrightsundertheinsurancepolicy2.Authorisationforthebankaccount3.Statementonsubmissiontoenforcement

BankDnBNORDPOLSKAS.A 35 000 7 153 30-04-2014

1.RegisteredpledgeforuptoPLN52,500alongwiththeassignmentofrightsundertheinsurancepolicy2.Authorisationforthebankaccount3.AssignmentofreceivablesforuptoPLN35,000

PekaoS.A. 2 000 1 803 30-09-20141.registeredpledgeoninventory(ownedbyNEUCAS.A.)forupto150%ofthecreditvalue,i.e.PLN3,000alongwiththeassignmentofrightsundertheinsurancepolicy;2.Authorisationforthebankaccount;3.Civillawsurety;4.Statementonsubmissiontoenforcement

MillenniumS.A. 2 000 1 930 18-07-2014 1.AssignmentofreceivablesfromNEUCASAdebtorsuptoPLN5,0002.TransferoftitletoinventoryforuptoPLN3,000(ownedbyNEUCASA);3.SuretygrantedbyNEUCAS.A.

Razem 85 974

OThER ShORT-TERm AND LONg-TERm FINANCIAL LIAbILITIESAS oFDECEmbER 31, 2014

AS oFdECEmBEr 31, 2013

Financiallease 55 275 67 280Total 55 275 67 280 long-term 44 232 53 292 short-term 11 043 13 988

FINANCIAL LEASE LIAbILITIES AS OF DECEmbER 31, 2014 AS oF dECEmBEr 31, 2013CASh FLOwS FROm

RESPECTIvE AgREEmENTS REPORTINg vALUECASh FLOwS FROm

RESPECTIvE AgREEmENTS REPORTINg vALUE

FUTURE mINImUm FEES UNDER FINANCIAL LEASE CONTRACTSPayablewithin1year 13 952 11 043 17 723 13 988Payablewithinfrom1to5years 41 079 33 101 43 049 33 145Payableafter5years 11 631 11 131 21 820 20 147Totalfutureminimumfeesunderfinanciallease contracts

66 662 55 275 82 592 67 280

Financialexpenses 11 387 x 15 312 xCurrentvalueofminimumfeesunderfinancial leasecontracts

55 275 55 275 67 280 67 280

133

UnderleasecontractstheGroupusesdevelopedreales-tates,machineryandequipmentaswellasvehicles.Theeffectivetermsofthecontractsrangefrom3to10years.TheGrouphastheoptiontopurchaseanyleasedpropertyfortheirmarketvalueattheendoftheeffectivetermofthe

contract.Feesforuseofitemscoveredbythecontractsarevariableandarebasedonreferenceinterestrates,mostlyWIBOR1M.

LEASED ASSETS AS OF DECEmbER 31, 2014 by ASSET CATEgORy

TOTALLANd, BuILdINgS

ANd STruCTurES

mAChINEry ANd EquIpmENT VEhICLES

Netbalancesheetvalueofleasedassets 72 864 27 326 8 956 109 146

LEASED ASSETS AS OF DECEmbER 31, 2013 by ASSET CATEgORy

TOTALLANd, BuILdINgS

ANd STruCTurES

mAChINEry ANd EquIpmENT VEhICLES

Netreportingvalueofleasedassets 74 699 28 956 13 047 116 702

FUTURE PAymENTS FOR ThE RIghT OF PERPETUAL USUFRUCT OF LAND ACqUIRED AgAINST PAymENT OR FREE OF ChARgE, LEASE CONTRACTS AND RENT CONTRACTS FOR OFFICE AND wAREhOUSE SPACE

RIghT OF PERPETUAL USUFRUCT OF LAND AS oFDECEmbER 31,

2014

AS oFdECEmBEr 31, 2013

Upto1year 327 264From1to5years 1 308 1 058Over5years 23 360 19 191

24 995 20 513

RENT AND LEASE CONTRACTS FOR OFFICE AND wAREhOUSE PREmISESUpto1year 22 764 13 640From1to5years 63 335 33 317Over5years 93 308 91 851

179 407 138 808

UnderrentandleasecontractstheGroupusesofficeandwarehousepremises.Apartofcontractswasenteredintoforanindefinitetimeandcontractsforadefinitetimewereconcludedforperiodsrangingfrom5to20years.Thelong-

est-termcontractexpiresin2031.PaymentsfortheuseofassetscoveredbythecontractsarespecifiedinPLN,where-asinapartofcontractsthebasisforvaluationoffeesisde-terminedinEUR.


134FINANCIAL RAPORT

NoTE 11 ShARE CAPITAL, TREASURy ShARES, ShARE OPTIONS

ShARE CAPITAL DECEmbER 31, 2014

dECEmBEr 31, 2013

Numberofshares 4 554 4 513Parvalueofshares(PLN/share) 1 1Sharecapital 4 554 4 513

ShARE CAPITAL (STRUCTURE) AS OF DECEmbER 31, 2014

SErIES/ISSuETypE oF-ShArE prEFErENCE

TypE oF rESTrICTIoNS IN rIghTS To ShArES

NumBEr oF ShArES

VALuE oF SErIES/ISSuEAT pAr VALuE

mEThod oF SuBSCrIpTIoNFor ThE CApITAL

A None Withoutrestrictions 355 355 fromtransformationofTorfarmSp.zo.o.B None Withoutrestrictions 226 226 Cash

C None Withoutrestrictions 29 29 Fromnetprofitsrealizedfromthedateofregis-trationofthecompanyuntilJanuary31,1995

D None Withoutrestrictions 1 390 1 390 Fromtransferstosupplementarycapitalmadeinthepreviousyears

E None Withoutrestrictions 27 27 CashF None Withoutrestrictions 633 633 CashG None Withoutrestrictions 105 105 CashH None Withoutrestrictions 1 244 1 244 CashI None Withoutrestrictions 470 470 CashK None Withoutrestrictions 75 75 Cash

4 554

ShARE CAPITAL (STRUCTURE) AS OF DECEmbER 31, 2013

SErIES/ISSuETypE oF-ShArE prEFErENCE

TypE oF rESTrICTIoNS IN rIghTS To ShArES

NumBEr oF ShArES

VALuE oF SErIES/ISSuEAT pAr VALuE

mEThod oF SuBSCrIpTIoNFor ThE CApITAL

A None Withoutrestrictions 355 355 fromtransformationofTorfarmSp.zo.o.B None Withoutrestrictions 226 226 Cash

C None Withoutrestrictions 29 29 Fromnetprofitsrealizedfromthedateofregis-trationofthecompanyuntilJanuary31,1995

D None Withoutrestrictions 1 390 1 390 Fromtransferstosupplementarycapitalmadeinthepreviousyears

E None Withoutrestrictions 27 27 CashF None Withoutrestrictions 633 633 CashG None Withoutrestrictions 105 105 CashH None Withoutrestrictions 1 244 1 244 CashI None Withoutrestrictions 470 470 CashK None Withoutrestrictions 34 34 Cash

4 513

135

ShARE CAPITAL (STRUCTURE) AS OF DECEmbER 31, 2014 NUmbER OF ShARES % OF ShARE CAPITAL NUmbER OF vOTES % OF vOTES

KazimierzHerbazpodmiotamizależnymi 1 060 632 23,3% 1 060 632 23,3%WiesławaTeresaHerba 1 027 018 22,6% 1 027 018 22,6%SORSHoldingLimited* 470 000 10,3% 470 000 10,3%NEUCA 75 511 1,7% 75 511 1,7%Others 1 920 604 42,2% 1 920 604 42,2%

4 553 765 100,0% 4 553 765 100,0%

* subsidiary of FPT Foundation

ShARE CAPITAL (STRUCTURE) AS OF DECEmbER 31, 2013 NUmbER OF ShARES % OF ShARE CAPITAL NUmbER OF vOTES % OF vOTES

KazimierzHerbazpodmiotamizależnymi 1 050 963 23,3% 1 050 963 23,3%WiesławaTeresaHerba 1 027 018 22,8% 1 027 018 22,8%SORSHoldingLimited* 470 000 10,4% 470 000 10,4%Others 1 964 784 43,5% 1 964 784 43,5%

4 512 765 100,0% 4 512 765 100,0%* subsidiary of FPT Foundation

ChANgES IN ShARE CAPITAL FROm JANUARy 1 TO DECEmbER 31,

2014

From JANuAry 1 To dECEmBEr 31,

2013

Openingbalanceofthesharecapital 4 513 4 548Increasesinthesharecapitalintheperiod 41 7 exercise of share options 41 7Decreasesinthesharecapitalintheperiod - 42 cancellation of own shares - 42Closingbalanceofthesharecapital 4 554 4 513

TREASURy ShARESNumBEr oF ShArES

VALuE AT purChASE prICES CArryINg AmouNT oBJECTIVE/dESIgNATIoN

75 511 17 387 17 387 Buy-backofitsownsharesforthepurposeoftheircancellation

PursuanttoResolutionNo.9oftheExtraordinaryGener-alMeetingofNEUCAS.A.ShareholdersofNovember12,2013authorisingtheBoardofDirectorsoftheCompanytoacquireitsownsharesforfurthercancellationbyDe-cember31,2014NEUCAS.A.acquiredatotalof75,511ofitsownsharesfortheamountPLN17,387,000.Untilthe

dateofpublicationofthefinancialstatementstheCompa-nydidnotredeemthesharessoacquired.AsofDecember31,2014,theCompanyheld75,511ownshareswiththenominalvalueofPLN76,000andtheirvaluedeterminedatpurchasepriceequaltoPLN17,387,000.


136FINANCIAL RAPORT

INCENTIVE progrAm For ThE yEArS 2012 – 2014

PursuanttoResolution10oftheGeneralMeetingofShare-holdersofNEUCAS.A.ofOctober17,2011theGeneralMeet-ingofShareholdersmadethedecisiontolaunchanincen-tiveprogramforthemembersoftheBoardofDirectorsoftheparent.Theincentiveprogramcoveredfinancialyears2012-2014.Accordingtotheprogramtermsandcondi-tionstheeligiblepersonswillbeofferedtotalof99,000se-riesFsubscriptionwarrants–33,000subscriptionwar-rantsforeachfinancialyear.

Therighttopurchasewarrantsarisesuponfulfilmentofapplicableallocationcriteria.WarrantsforagivenfinancialyearwillbeassignedonlytothemembersoftheBoardofDirectorsprovidedthatarespectivepersoncooperatesandperformsthefunctionintheBoardofNEUCAS.A.continu-ouslyfromJanuary1toDecember31ofagivenyear.Theseconditionsmustbesatisfiedjointly.Theabove-mentionedperiodisexclusiveoftheperiodofcooperationandperfor-manceofthefunctionintheBoardofDirectorsintheno-ticeperiodforcontractsbetweentheparties.

Aforfeitureoftherighttopurchasewarrantsforagivenyeartakesplaceinthecaseof:

1. 1.Terminationoftheemploymentcontractorman-agementcontract,oranyotherlegalrelationshipbetweentheeligiblepersonandtheGroup,withanoticeofterminationsubmittedbytheeligible

personbeforetheendofthefinancialyearunlesstheeligiblepersonandtheGrouporthesubsidiaryagreeotherwiseeveniftherighttopurchasewar-rantsfallsduringarespectivenoticeperiod.

2. 2.TerminationoftheemploymentcontractwiththeeligiblepersonpursuanttoArt.52or53oftheLa-bourCode,orofthemanagementcontractoranyotherlegalrelationshipbetweentheeligiblepersonandtheGrouportherelatedcompany,forreasonsattributabletotheeligiblepersonjustifyingimme-diateterminationofthelegalrelationship,atanytimeofagivenyear,eveniftherighttopurchaseWarrantsfallsalreadyduringthetermofsuchle-galrelationship.

EachwarrantpurchasedbyeligiblepersonswillauthorisetosubscribeforoneseriesLordinarybearershareintheparent,withparvalueofPLN1(inwords:onePolishzloty).

TheissuepriceatwhicheligibleholdersofseriesFWar-rantswillbeauthorisedtosubscribefortheparent’sshareswasdeterminedasarithmeticaverageofclosingpricesoftheparent’ssharesfromallsessionsontheWarsawStockExchangeintheperiodfromJuly1,2011toSeptember30,2011,i.e.PLN66.21.

Sinceonthemarkettherearenosubscriptionwarrantswithsimilartermsandconditionsandexercisedatesthe

wARRANTS FOR ShARES IN ThE PERIOD FROm JANUARy 1 TO DECEmbER 31, 2014

LICzbA wARRANTów

Średnie ważone CENy wykoNANIA

Openingbalance 223 950 117,58Exercisedinthereportingperiod (41 000) 52,34Closingbalance 182 950 132,20

wARRANTS FOR ShARES IN ThE PERIOD FROm JANUARy 1 TO DECEmbER 31, 2013

LICzbA wARRANTów

Średnie ważone CENy wykoNANIA

Openingbalance 126 000 60,41Grantedinthereportingperiod 104 950 181,25Exercisedinthereportingperiod (7 000) 43,00Closingbalance 223 950 117,58

137

valuationofrightsattributabletotheeligiblepersonswasmadeusingtheBlack-Scholesoptionvaluationmodel.

Inputdataforthemodel:

– marketprice-closingpriceofNEUCAS.A.sharesonOctober17,2011:PLN69.50

– exercisepriceforseriesFwarrants:PLN66.21

– optiontermuntilexpirationinyears:theperiodfromthedateofissueofsubscriptionwarrantsun-tiltheendof2017(deadlineforexerciseofgrant-edwarrants)–for2012tranchefromJanuary1,2015,for2013tranchefromJanuary1,2016andfor2014tranchefromJanuary1,2017totheendof 2017)

– interestrate:–first-yearreturnon4-yeartreasurybondsofferedinApril2012:5.5%

– sharepricevolatility–volatilitycalculatedfromthebeginningofquotationsoftheCompanyontheWarsawStockExchange,i.e.November22.2004un-tiladoptionoftheresolutionbytheExtraordinaryGeneralMeetingofShareholdersonintroducingtheincentiveprogram,i.e.October17,2011:33.86%

ThevalueofwarrantsinitiallyestimatedonthebasisoftheabovedatawasPLN2,525,000.

InconnectionwithchangesintheBoardofDirectorsoftheparentthevaluationoftheincentiveprogramwasad-justed.TheadjustedvalueofwarrantswasPLN1,989,000.

ThroughResolutions5and6oftheExtraordinaryGeneralMeetingofShareholdersofNEUCAS.A.ofNovember12,2013,theExtraordinaryGeneralMeetingofShareholdersamendedResolution10oftheGeneralMeetingofShare-holdersofNEUCAS.A.ofOctober11,2011.Asaresult,theincentiveprogramcoversthemembersoftheBoardofDi-rectorsandkeystaffandcollaboratorsofNEUCAGroup.Undertheamendedregulationsfortheincentiveprogrameligiblepersonswereofferedatotalof182,950seriesFsub-scriptionwarrants–33,000for2012,81,975for2013and74,975for2014.

Inconnectionwiththeamendmentstotheregulationsoftheincentiveprogramthevaluationoftheprogramwasadjusted.TheadjustedvalueofwarrantswasPLN2,777,000ofwhichPLN748,000wasclassifiedintoremu-nerationexpensesof2012,PLN1,151,000wasclassifiedintoremunerationexpensesof2013,andPLN878,000wasclas-sifiedintoremunerationexpensesof2014.


138FINANCIAL RAPORT

NoTE 12 INCENTIvE PROgRAm FOR ThE yEARS 2012-2014

ACTUARIAL ASSUmPTIONS DECEmbER 31, 2014 dECEmBEr 31, 2013

DiscountrateasofDecember31 2,75% 3,7%

Futuregrowthinremunerations 2,5% 1,0%Numberofemployees 3 878 3 402

reZerwY Na ŚwiadCZeNia praCowNiCZe proVISIoN For rETIrEmENT

SEVErANCE pAyS

proVISIoN ForuNuSEd LEAVE

oThEr proVISIoNS For EmpLoyEE

BENEFITSToTAL

ProvisionsasofJanuary1,2013 381 3 397 - 3 778Increasesinprovisions 116 494 - 610Decreasesinprovisions (36) (480) - (516)ProvisionsasofDecember31,2013 461 3 411 - 3 872ProvisionsasofJanuary1,2014 461 3 411 - 3 872Increasesinprovisions 83 226 1 691 2 000Decreasesinprovisions (99) (1 240) (5 021) (6 360)Increasesduetochangestotheperimeterofconsolidation 212 892 3 776 4 880ProvisionsasofDecember31,2014including: 657 3 289 446 4 392 short-term provisions 87 3 289 446 3 822 long-term provisions 570 - - 570

NoTE 13 PROvISIONS FOR OThER LIAbILITIES

PROvISIONS FOR OThER LIAbILITIES oThEr proVISIoNSProvisionsasofJanuary1,2013 362Provisionscreated 368Provisionsused (389)ProvisionsasofDecember31,2013 341ProvisionsasofJanuary1,2014 341Provisionscreated 548Provisionsused (1 552)Increasesduetochangestotheperimeterofconsolidation 4 355ProvisionsasofDecember31,2014including: 3 692 short-term provisions 3 466 long-term provisions 226

139

NoTE 14 TRADE LIAbILITIES AND OThER OPERATINg LIAbILITIES

ShORT TERm TRADE LIAbILITIES AND OThER OPERATINg LIAbILITIES DECEmbER 31, 2014 dECEmBEr 31, 2013

Tradeliabilitiesfromotherentities 1 831 989 1 291 750Payrollliabilities 9 708 8 893Liabilitiesundertaxes,customsduties,insuranceandotherbenefits 14 317 13 270Liabilitiesunderpurchasesoffixedassetsfromotherentities 6 570 5 645Liabilitiesforpurchasesofholdings/sharesfromotherentities 285 - Others 3 262 2 542Totaltradeliabilitiesandotheroperatingliabilities 1 866 131 1 322 100

TRADE LIAbILITIES AND OThER OPERATINg LIAbILITIES by CURRENCy

AS oF DECEmbER 31, 2014 AS oF dECEmBEr 31, 2013IN ThE ForEIgN

CurrENCyAFTEr CoNVErSIoN

INTo pLNIN ThE ForEIgN

CurrENCyAFTEr CoNVErSIoN

INTo pLNPLN 1 860 973 1 860 973 1 312 607 1 312 607EUR 1 188 5 064 2 284 9 471USD - - 2 6CZK 575 88 50 9GBP 1 6 1 7

1 866 131 1 322 100

ThemostimportantitemoftheGroup’sliabilities,besidescreditliabilities,aretradeliabilitiesfrompurchasesofgoodssuchaspharmaceuticalproducts.

Termsandconditionsarestandardmarketterms.Inmostcases,paymentdatesfallonwithin0-90days.Suppliersdonotchargeinterestondeferredpayments.

Duetomaturitiesrelativelyshortandstandardforthein-dustryofdistributionofpharmaceuticals,theGroupdoesnotdiscounttradeliabilities.


140FINANCIAL RAPORT

NoTE 15 OThER LIAbILITIES

OThER LIAbILITIES DECEmbER 31, 2014 dECEmBEr 31, 2013

Deferredincome–saleandleaseback 2 996 3 726Deferredincome 1 330 113Accrualsatasofthelastdayofthereportingperiod,including: 4 326 3 839 long-term accruals 2 327 2 997 short-term accruals 1 999 842

NoTE 16 INCOmE TAx

INCOmE TAx (mAIN ITEmS)

PROFIT AND LOSS AND OThER COmPREhENSIvE INCOmE FROm JANUARy 1 TO DECEmbER 31, 2014


Currentincometax 10 045 23 078Currentincometaxexpense 10 045 23 078ADJUSTmENTS TO ThE CURRENT INCOmE TAx OF PREvIOUS yEARSDeferredincometax (24 714) (3 887)Onemergenceandreversaloftemporarydifferences (24 714) (3 887)Taxchargedisclosedintheprofitandloss andothercomprehensiveincome (14 669) 19 191

RECONCILIATION OF TAx ExPENSES wITh gROSS FINANCIAL RESULT IN ThE PERIOD FROm JANUARy 1 TO DECEmbER 31



Grossfinancialresult 78 688 104 533IncometaxcalculatedbasedonapplicablePolishrate(19%) 14 951 19 861Otherdifferences (306) (670)Recognitionofpreviouslyunrecogniseddeferredtaxassets ontaxlossesfrompreviousyears

(8 896) -

Incomeofentitiesnotbeingincometaxpayers (13 416) - Assetscreatedonthedifferencebetweentaxandbookvaluesoftrademarks (7 002) - Taxchargedisclosedintheprofitandloss andothercomprehensiveincome (14 669) 19 191

Effectivetaxrate -19% 18%

141

DEFERRED INCOmE TAx (PROvISIONS) STATEmENT OF FINANCIAL POSITION PROFIT AND LOSS ACCOUNT ChANgE FROm ACqUISITION/DISPOSAL OF bUSINESS ENTITIES

SPECIFICATIONAS AT

DECEmbER 31, 2014

AS AT DECEmbER 31,

2013

FROm JANUARy 1 TO DECEmbER 31,

2014


2013

DEFERRED TAx PROvISIONS foraccruedinterest 3 418 2 892 526 1 249 - forthedifferencebetweenbalancesheetamortisationanddepreciationandtax amortisationanddepreciation

4 741 3 740 (715) (18) 1 716

forthedifferenceinthebalancesheetvalue andtaxvalueofleasedfixedassets

9 132 8 129 1 003 1 383 -

fordiscountsreceivablefromsuppliers 6 276 5 271 (1 673) (1 901) 2 678 forpositiveforeignexchangedifferences 19 32 (99) 1 86 forreceivablecompensations 65 143 (78) - - forreceivablesubsidies - - - (120) - forothertemporarydifferences 100 93 (3) 8 10Grossdeferredtaxprovisions 23 751 20 300 (1 039) 602 4 490

DEFERRED INCOmE TAx (ASSETS) STATEmENT OF FINANCIAL POSITION

PROFIT AND LOSS ACCOUNT dEFErrEd TAx rECogNISEd

IN oThEr ComprEhENSIVE

INComE

ChANgE From ACquISITIoN/

dISpoSAL oF BuSINESS

ENTITIES SPECIFICATION

AS AT DECEmbER 31,

2014

AS AT DECEmbER 31,

2013

FROm JANUARy 1 TO DECEmbER 31,

2014


2013

DEFERRED TAx ASSETS underprovisionsforemployeebenefits 834 736 832 (18) - 930 underpayrollandchargesonremunerations paidinthenextperiod

964 852 (85) 77 - 27

underdiscountsassignedtothevalue ofinventorystock

5 707 3 265 (2 442) 1 881 - -

underdiscountsgrantedtorecipients 104 2 568 3 514 338 - 1 050 underthedifferencebetweenbalancesheet andtaxvaluationsoftangibleassets

15 751 3 546 (8 968) 279 - 3 237

undertaxloss 25 490 13 143 (13 681) (26) - (1 334) write-downonreceivables 4 280 4 572 1 386 (228) - 1 094 underexchangeratelossesfromvaluation 20 13 (7) 1 - - underdiscountingofreceivables - - - - undersaleofrealestate (saleandleaseback)

621 759 138 139 - -

sellingcosts - - - - - - underadjustmentofcostsagainst unpaidliabilities

13 287 5 989 (7 298) (5 989) - -

underinterestdueonliabilities 1 380 2 180 2 040 (709) - 1 240 liabilitiesunderfinanciallease 4 - (4) - - - undervaluationof cashflowhedges

1 047 79 - - 968 -

othertemporarydifferences 776 644 900 (234) - 1 031Grossdeferredtaxassets 70 265 38 346 (23 675) (4 489) 968 7 275Deferredincometaxexpense x x (24 714) (3 887)Netdeferredtaxprovision - - x xNetdeferredtaxassets 46 514 18 046 x x


142FINANCIAL RAPORT

NoTE 17 aKtYwa warUNKowe oraZ ZoBowiĄZaNia warUNKowe

CONTINgENT ASSETS AND CONTINgENT LIAbILITIES DECEmbER 31, 2014 dECEmBEr 31, 2013

GuaranteesreceivedPLN 5 519 4 509 fromotherentities,under:- guarantees received in PLN 5 519 4 509

CONTINgENT LIAbILITIES UNDER gRANTED gUARANTEES AND SURETIES

guArANTEE For AS CurrENCydECEmBEr 31, 2014

dECEmBEr 31, 2013

guArANTEE VALIdITy dATE

Contractualguarantee(ten-derguarantee,performan-cebond)

Contractorsacquiredunderpublicprocurementspursu-anttotheAct-PublicProcu-rementLaw

Contractualguaran-tee(tenderguaran-tee,performancebond)

PLN 5 457 4 42421.11.

2017

Collateralforpaymentofprizesforthepromotionallottery

DirectoroftheCustomsOffice

Collateralforpay-mentofprizesforthepromotionallottery

PLN 62 8524.04.

2015

RazemwPLN 5 519 4 509

NoTE 18 NOTES TO PROFIT AND LOSS AND OThER COmPREhENSIvE INCOmE

SALES REvENUES FROm JANUARy 1 TO DECEmbER 31, 2014


Salesofgoods 6 436 345 5 689 045Provisionofservices 132 355 106 047Totalsalesrevenues 6 568 700 5 795 092

COSTS by TyPE FROm JANUARy 1 TO DECEmbER 31, 2014


Depreciationandamortisation 27 640 23 992 Consumptionofmaterialsandenergy 32 433 27 440 Externalservices 228 256 192 681 Taxesandcharges 9 684 6 302 Payroll* 167 711 151 716 Socialsecurityandotherbenefits 36 104 32 236 Othercostsbytype 10 897 9 123 Costsbytype 512 725 443 490 Salesexpenses (331 140) (283 249)Overheadexpenses (164 114) (145 648)Manufacturingcostsofproductsandservicessold 17 471 14 593

*includingrestructuringcostsintheamountofPLN5monwagesandseverancepaysforredundantemployees.

143

. OThER OPERATINg REvENUES AND ExPENSES FROm JANUARy 1 TO DECEmbER 31, 2014


Otheroperatingrevenues 14 118 11 834Profitondisposalofnon-financialfixedassets 865 970ReimbursementunderZPCHR(supportedemploymenten-terprise)andSocialSecurity(ZUS)

17 -

Reimbursedlegalcosts 688 412Releasedrevaluationwrite-downsonreceivables 3 575 946Compensations 961 1 100Profitonthesettlementofoptions - 4 677Physicalcountsurpluses 66 - Negativegoodwill - 203Contractualpenalties 79 1 552Subsidies 618 352Reversalsofrevaluationwrite-offstofixedassets 2 617 - Releasedrevaluationwrite-downsoninventory 1 169 - Othersales 1 515 - Revenuesfromtherepaymentofwrittenoffdebts 748 164Others 1 200 1 458Otheroperatingexpenses 27 856 32 337Donations 46 258Deficits/liquidationofassets 11 320 17 092Legalandcourtenforcementexpenses 621 782Expensesforinvestmentproperties 645 698Establishedwrite-downsonreceivables 10 230 8 962Writtendownreceivables 2 615 2 380Non-deductibleVAT 494 680Contractualpenalties 122 100Establishedwrite-downsoninventory 604 554Lossondisposalofnon-financialfixedassets 364 - Others 795 831Othernetoperatingexpenses (13 738) (20 503)

FINANCIAL REvENUES AND ExPENSES FROm JANUARy 1 TO DECEmbER 31, 2014


Financialrevenues 19 240 18 527Interest 18 970 18 384Positiveforeignexchangedifferences 5 4Releasedwrite-downsonfinancialliabilities 111 - RevaluationofIRScontracts 26 17Otherfinancialrevenues 128 122Financialexpenses 17 165 16 559Interest 15 304 14 723Bankcommissions 1 003 1 066Negativeforeignexchangedifferences 256 187Releasedwrite-downsonfinancialreceivables 181 - RentforPWU-lease 419 485Revaluationofinvestments - 92Otherfinancialexpenses 2 6Netfinancialrevenues 2 075 1 968


144FINANCIAL RAPORT

Descriptionoffactorsdilutingtheweightedaveragenumberofshares.

ByResolutionoftheExtraordinaryMeetingofShareholdersofJanuary15,2009,afactorwasintroducedwhichdilutesthenumberofordinaryshares,i.e.subscriptionwarrantsaimingtoensuretothepreviousmajorityshareholdersoftheparentthepossibilitytoraisetheirshareininitialcapitalofthepar-entinthenumberof320,000.

ByResolutionoftheExtraordinaryMeetingofShareholdersofMay27,2009,afactorwasintroducedwhichdilutesthenumberofordinaryshares,i.e.subscriptionwarrantsforpar-ticipantsoftheincentiveprogram,membersoftheBoardofDirectorsoftheCompany,inthenumberof81,000.

Asnon-markettermsforgrantingsubscriptionwarrantstotheincentiveprogramparticipantsintroducedbyResolu-tionoftheExtraordinaryMeetingofShareholdersofMay27,2009werenotsatisfied,thenumberofwarrantswaschangedto75,000.

OnJanuary13,2012,subscriptionwarrantswereexercisedbyparticipantsoftheincentiveprogram,inthenumberof10,000,thenthenumberofwarrantswaschangedto65,000.

OnOctober1,2012,subscriptionwarrantswereexercisedbyparticipantsoftheincentiveprogram,inthenumberof10,000,thenthenumberofwarrantswaschangedto55.000.

OnOctober4,2012,subscriptionwarrantswereexercisedbyparticipantsoftheincentiveprogram,inthenumberof7.000,thenthenumberofwarrantswaschangedto48.000.

OnFebruary1,2013,subscriptionwarrantswereexercisedbyparticipantsoftheincentiveprogram,inthenumberof7.000,thenthenumberofwarrantswaschangedto41.000.

ByResolutionoftheOrdinaryMeetingofShareholdersofOcto-ber17,2011,afactorwasintroducedwhichdilutesthenumberofordinaryshares,i.e.subscriptionWarrantsforparticipantsoftheincentiveprogram,membersoftheBoardofDirectorsoftheCompany,inthenumberof99,000.

Asnon-markettermsforgrantingsubscriptionwarrantstotheincentiveprogramparticipantsintroducedbyReso-lutionoftheOrdinaryMeetingofShareholdersofOctober17,2011werenotsatisfied,thenumberofwarrantswaschangedto78,000.

PursuanttoResolutionoftheExtraordinaryGeneralMeetingofShareholdersofNovember12,2013thenumberofsubscrip-tionwarrantswaschangedforparticipantsoftheincentiveprogramintroducedbyResolutionoftheOrdinaryGeneralMeetingofShareholdersofOctober17,2011to182,950.

OnJanuary13,2014,subscriptionwarrantswereexercisedbyparticipantsoftheincentiveprogram,inthenumberof34,000,thenthenumberofwarrantswaschangedto7,000.

OnAugust10,2014,subscriptionwarrantswereexercisedbyparticipantsoftheincentiveprogram,inthenumberof7,000whichledtotheexerciseofallthewarrants.

EARNINgS PER ShARE FROm JANUARy 1 TO DECEmbER 31, 2014


Netprofitoftheyearforthepurposesofcalculationofearningspersharetobedistributedbetweenshareholders

93 070 85 347

Numberofsharesoutstanding 4 553 765 4 512 765Weightedaveragenumberofsharesreportedfortheneedsofcalculatingthevalueofbasicearningspershare

4 514 163 4 512 644

DILUTION EFFECT FROm ThE POTENTIAL NUmbER OF ORDINARy ShARES:Subscriptionwarrants 507 394 544 545Weightedaveragenumberofordinaryshares(fortheneedsofcalcula-tionsofthevalueofdilutedearningspershare)

5 021 557 5 057 189

CONTINUINg OPERATIONSNetprofitoftheyeartobedistributedbetweenshareholders 93 070 85 347EARNINgS PER ShARE Basic 20,62 18,91Diluted 18,53 16,88

145

NoTE 19 INFORmATION ON RELATED PARTIES



bENEFITS FOR mANAgEmENT STAFFShort-termemployeebenefits 728 916Total 728 916

Short-termemployeebenefitsformanagementstaffincluderemunerationofmembersoftheBoardofDirectors,re-ceivedforperformanceoftheirfunctions.

PURChASE OF SERvICES

rECEIVABLES wrITE-dowNS oN douBTFuL

PARTIES TO ThE TRANSACTION entitieshavingcapitalconnectionswiththemanagementstaff receivables - - otherrelatedparties - 1 803 (1 803)Total 1 472 1 803 (1 803)

ThemostsignificanttransactionsintheperiodfromJanuary1toDecember31,2014relatedtopurchasesofservicesfromentities

withcapitalconnectionswithmembersoftheBoardofDirectorsoroftheSupervisoryBoard.Receivablesfromotherrelatedpar-

tiesincludetransactionsenteredintoinpreviousyearswithCapsoSp.zo.o.-theentitycontrolledbythemainshareholderand,

atthesametime,theChairmanoftheSupervisoryBoardofNEUCAS.A.

REmUNERATION OF mEmbERS OF ThE bOARD OF DIRECTORS AND OF ThE SUPERvISORy bOARD FOR PERFORmANCE OF ThEIR FUNCTIONS IN ThE PARENT IN ThE PERIOD FROm JANUARy 1 TO DECEmbER 31, 2014

BASIC rEmuNErATIoN

rEmuNErATIoN uNdEr ThE INCENTIVE

SySTEmToTAL

REmUNERATION OF mEmbERS OF ThE bOARD OF DIRECTORSPiotrSucharski 128 264 392GrzegorzDzik 216 155 371JacekStyka 121 155 276Total 465 574 1 039

REmUNERATION OF mEmbERS OF ThE SUPERvISORy bOARDKazimierzHerba 363 - 363WiesławaHerba 243 - 243TadeuszWesołowski 140 - 140BożenaŚliwa 16 - 16IwonaSierzputowska 36 - 36Total 798 - 798

Intheprofitandlossandothercomprehensiveincomefor2014theamountofremunerationundertheincentivepro-gram,equaltoPLN574,000,wasincluded

RemunerationformembersoftheSupervisoryBoardrelatestotheperiodinwhichtheyperformtheirfunctions.

146FINANCIAL RAPORT

REmUNERATION OF mEmbERS OF ThE bOARD OF DIRECTORS AND OF ThE SUPERvISORy bOARD FOR PERFORmANCE OF ThEIR FUNCTIONS IN ThE PARENT IN ThE PERIOD FROm JANUARy 1 TO DECEmbER 31, 2013

BASIC rEmuNErATIoN

rEmuNErATIoN uNdEr ThE INCENTIVE

SySTEmToTAL

REmUNERATION OF mEmbERS OF ThE bOARD OF DIRECTORSPiotrSucharski 127 390 517GrzegorzDzik 300 228 528JacekStyka 121 228 349Total 548 846 1 394

REmUNERATION OF mEmbERS OF ThE SUPERvISORy bOARDKazimierzHerba 126 - 126WiesławaHerba 243 - 243TadeuszWesołowski 248 - 248IwonaSierzputowska 28 - 28Total 645 - 645

Intheprofitandlossandothercomprehensiveincomefor2013theamountofremunerationundertheincentivepro-gram,equaltoPLN846,000,wasincluded

RemunerationformembersoftheSupervisoryBoardrelatestotheperiodinwhichtheyperformtheirfunctions.

REmUNERATION OF mEmbERS OF ThE bOARD OF DIRECTORS AND OF ThE SUPERvISORy bOARD FOR PERFORmANCE OF ThEIR FUNCTIONS IN SUbSIDIARIES, JOINT SUbSIDIARIES AND ASSOCIATES IN ThE PERIOD FROm JANUARy 1 TO DECEmbER 31, 2014

REmUNERATION OF mEmbERS OF ThE bOARD OF DIRECTORSwyNAgrodzENIE

zASAdNICzEGrzegorzDzik 263Total 263

REmUNERATION OF mEmbERS OF ThE bOARD OF DIRECTORS AND OF ThE SUPERvISORy bOARD FOR PERFORmANCE OF ThEIR FUNCTIONS IN SUbSIDIARIES, JOINT SUbSIDIARIES AND ASSOCIATES IN ThE PERIOD FROm JANUARy 1 TO DECEmbER 31, 2013

REmUNERATION OF mEmbERS OF ThE bOARD OF DIRECTORSwyNAgrodzENIE

zASAdNICzEGrzegorzDzik 368Total 368

REmUNERATION OF mEmbERS OF ThE SUPERvISORy bOARDBożenaŚliwa 17Total 17

147

NoTE 20 ACTUAL CAPITAL ExPENDITURES AND CAPITAL ExPENDITURES bUDgETED FOR ThE PERIOD OF ThE NExT 12 mONThS FROm ThE LAST DAy OF ThE REPORTINg PERIOD, INCLUDINg FOR NON-FINANCIAL FIxED ASSETS

ExPENDITURES INCURRED

IN 2014

ExpENSES BudgETEd For 2015

ExPENSES ON ENvIRONmENTAL PROTECTIONOtherexpenses 12 338 50 449 including finance lease - -

TheGroupdidnotincuranymanufacturingcostsfortangibleassetsunderconstructionandtangibleassetsforitsownpurposes.

NoTE 22 RETAINED EARNINgS AND DIvIDENDS

Dividendspaidintheyears2014and2013amountedre-spectivelyto:17,225,000(PLN3.80pershare)andPLN14,441,000(PLN3.20pershare),respectively.

Forthecurrentyear,theBoardofDirectorsproposesadividendofPLN4.33pershare.ThedividendissubjecttoapprovalbytheshareholdersattheGeneralMeetingandisnotincludedinliabilitiesinthecurrentfinancialstatements.

NoTE 21 AvERAgE hEADCOUNT IN ThE gROUP by PROFESSIONAL gROUP

AvERAgE hEADCOUNT FROm JANUARy 1 TO DECEmbER 31, 2014


White-collars 2 541 1 975Blue-collars 1 673 1 528Total 4 214 3 503

STAFF TURNOvER FROm JANUARy 1 TO DECEmbER 31, 2014


Numberofemployeestakenoverfollowingthemerger 712 - Numberofhiredemployees 493 634Numberofdismissedemployees 754 606


148FINANCIAL RAPORT

NoTE 23 SUbSEqUENT EvENTS

OnJanuary8,2015theparentwasnotifiedabouttheac-quisitionof7,000seriesLordinarybearersharesforPLN65.95persharebyamemberoftheBoardofDirectorsoftheparent.Theshareswereacquiredbywayofexercis-ingseriesFsubscriptionwarrantsundertheIncentivePro-gramapprovedbytheResolutionoftheGeneralMeetingofShareholdersoftheparentofOctober17,2011asamendedthroughDomMaklerskimBankS.A.

OnFebruary4,2015NEUCAMEDSp.zo.o.,subsidiaryoftheparent,acquired100%ofsharesinUNIPOLIMEDSp.zo.o.Theacquiredcompanyoperatesanoutpatientcareclinic“CentrumRehabilitacjiUniPoliMed”inZgierz,ul.An-drzejaStruga13/21.(łódzkieprovince).Thefacilityprovidesservicesinthefieldofrehabilitationandlong-termnursingcare.Annually,theoutpatientcareclinicprovidesmedicalservicestoca.7,800patients.CentrumRehabilitacjiUni-PoliMedisoneofthebiggestcentresspecialisinginreha-bilitationZgierzcounty.InvestmentsinbasicmedicalcareistheelementofNEUCAS.A.strategyofbuildingitsownnetworkofoutpatientcareclinicsinwhichpatientswillhaveaccesstobasicmedicalservices.ThepurchasepriceforthesharesamountedtoPLN921,000.

PursuanttoResolution194/2015ofFebruary25,2015theBoardofDirectorsofGiełdaPapierówWartościowychwWarszawieS.A.decidedtointroduceintoregulartrad-

ingonFebruary27,20157,000(seventhousand)seriesLordinarybearersharesofNEUCAS.A.(“Shares”)providedthatKrajowyDepozytPapierówWartościowychS.A.regis-terssuchsharesonFebruary27,2015andassignsthecode“PLTRFRM00018”tosuchshares.PursuanttoResolutionNo.101/15ofFebruary13,2015oftheBoardofDirectorsofKrajowyDepozytPapierówWartościowychS.A.regis-trationofthesharesinthedepositoryofsecuritieswillbemadewithinthreedaysofreceiptbytheNationalDeposi-toryofdocumentsconfirmingthattheoperatorofthereg-ulatedmarketdecidestointroducethesharestotradingontheregulatedmarket.

OnMarch5,2015,theCompanyreceivedthedecisionoftheDistrictCourtinToruń,7thCommercialDepartmentoftheNationalCourtRegister,ontheregistrationonFeb-ruary26,2015,ofthechangesinthesharecapitaloftheCompany.Thesharecapitalincreasewasaresultofreg-istrationof7,000LseriesshareswiththenominalvalueofPLN1each.Aftertheregistration,thesharecapitaloftheCompanyamountstoPLN4,560,765andisdividedinto4,560,765shareswiththenominalvalueofPLN1.

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