Group report

FY2016

2016

Contents

Introduction ______________________________________________________________________________________________ 7

CEO’s foreword ___________________________________________________________________________________________ 8

Identification of the Group _____________________________________________________________________________ 10

Company Mission _______________________________________________________________________________________ 12

Organization structure _________________________________________________________________________________ 14

Management structure _________________________________________________________________________________ 15

Financial Statements ___________________________________________________________________________________ 16

7

Introduction

We are pleased to announce that ProGroupe finalized the financial statements of fiscal year 2016 and

prepared consolidated statements for 5 companies in the group.

In fiscal year 2016 (FY2016), ProGroupe started works on a new project in Asia and therefore revenue in all

of the firms grew rapidly compared to FY2015. The project will last approximately three years since its start

and will increase our experience with Asian market.

Because of good results of 2016, the management decided to simplify the structure of the Group and the

relations between the companies. As a result, from the start of 2017, the company will take on a holding

structure, with ProGroupe Sediment Solutions Pte. Ltd. as a parent company. As a result from this step, the

whole group will act under brand “ProGroupe”, which will help strengthen the awareness of the brand.

As part of this effort, we have evolved our reporting approach this year. To meet a higher standard of

transparency and disclosure, we prepared a new company report, which will include all important

information about the activities of the Group as well as the consolidated financial statements for that year,

which will guide our potential partners to more-detailed information.

We encourage you to view full ProGroupe FY2016 Group Report, which provides detailed information about

our balance sheet items and financial results in 2016.

HIGHLIGHTS OF 2016

• We started a project of simplification of ProGroupe shareholder structure

• We made significant progress with our Sales activities in SouthEast Asia

• We started a long-term project with our partner in Kazakhstan

• We made a significant investment to acquire new dredging machine

• We started taking steps towards building a new training center in Slovakia

8

CEO’s foreword

Clean drinking water is an essential

component of people's lives on Earth.

Since medieval times, people have built

buildings for their accumulation and

use in various areas of their activities.

The greatest boom of waterbuilding

has occurred in the 20th century.

Human activities in the surrounding

countryside, however, caused the

erosion of the shores and the flooding

of natural and industrial substances into the recipient. 90% of these substances end up in the reservoirs and

accumulate on their day. We're talking about the bottom sediments.

The global trend of waterbeding by bottom sediments has the effect of reducing primary functions of the

water structures. Whether it is water accumulation as a source for drinking, industrial or agricultural use. It

is therefore necessary to revitalize these water supply reservoirs, i.e. remove and process bottom sediments.

The staff of the PROGROUPE Group have been dealing with this issue for the past 10 years. With successive

technological developments, we have been able to optimally combine the bottom sediment extraction by

floating suction dredger with mechanical drainage realized by high speed centrifuges. Our DESET®

technology lines (DEwatering SEdiment Technology) allow customers to dismantle a functional unit with

their versatility and compactness. If the client requires, we also offer operating the DESET line (eg. Our

project in Kazakhstan).

We had a successful year. In April 2016, in Kazakhstan, we built a DESET line for drainage of organic sediment

(Sapropel). The production of nearly 70,000 tons of material over a short summer season (May to

September) is the success of all the holding's subsidiaries. It is a logical outcome that our customer asked us

to extend the contract until end of 2018. Also, at the of 2017, Kazakhstan is preparing new major projects

(2018-2020) where the group and its trading partners from Kazakhstan should participate.

A great challenge for PROGROUPE is the opening of new markets in Asia. The business activities of our

Singapore company have begun to deliver first positive feedback from potential clients over the past year.

Our knowledge and experience in this field is huge, however the real test will be to master the logistical,

linguistic and regional differences between Europe and Asia.

9

2017 is a year of consolidation. We are facing the implementation of property changes in affiliated

companies. The result will be a clear organizational structure of holding type with a parent company in

Singapore. This step will simplify the reporting of results, provide us with a comprehensive overview of the

holding's performance to us and our partners.

Consolidation awaits us also at the production and technical level. Completing of the development and

production of new technological elements of the DESET line, continuation in the work on the development

and optimization of the production process. Yes, the production process. It must be remembered that we can

produce around 1,000 tonnes of drained sediment every day.

After signing a long-term lease agreement on our operating space in Slovakia, we are planning to design,

build, and implement a new production and training center for the DESET service. Managing this task will

provide us with a good basis for development of our own human resources to achieve our goals for the future.

10

Identification of the Group

PARENT COMPANY

Progroupe sediment solutions Pte. Ltd.

21 Bukit Batok Crescent

#29-73 Wcega Tower

Singapore 658065

Local contact person: Robert Sabaka

tel +65 8321 3786

robert.sabaka@sedimentsolutions.sg

Company ID N°: 201524757E

Bank details: OCBC Bank Singapore

Account N°: 689746006001 (SGD)

Account N°: 601104748201 (EUR)

Bank Code: 7739

SWIFT: OCBCSGSG

SUBSIDIARY COMPANIES

PROGROUPE sediment removal a.s.

Dunajska 14/7495, 811 08 Bratislava

Slovak Republic

tel +421 2 209 094 40

fax +421 2 209 094 42

info@progroupe.net

Company Identification N°: 46 658 769

VAT Registration N°: SK2023507959

Bank details: Sberbank Slovensko a.s. Account N°: 4280103108/3100 IBAN: SK46 3100 0000 0042 8010 3108 SWIFT: LUBASKBX Registered in the Company Register maintained by the District Court Bratislava I, Section Sa,

Insert N° 5866/

PROBASE s.r.o. Partiza nska cesta 5565/77 974 01 Banska Bystrica IC O: 46362029 Tel.: +421 48 414 79 82 +421 48 414 79 83

Fax: +421 48 414 79 84 E-mail: probase@probase.sk Registered in the Company Register maintained

by the District Court Banska Bystrica , Insert N° 20874/S

11

PROLAKE s.r.o. Partiza nska cesta 5565/77 974 01 Banska Bystrica IC O: 44475560, IC DPH: SK2022827158 Registered in the Company Register maintained

by the District Court Banska Bystrica, Insert N° 16561/S T: +421 48 414 79 82, +421 48 414 79 83 F: +421 48 414 79 84

E: prolake@prolake.sk

ESM s.r.o. Dunajska 14/7495 811 08 Bratislava Slovak Republic IO 45 383 961 VAT SK 2022961941 Bank: Volksbank Slovensko, as., account no. 4080028908/3100 E: info@esman.sk

Tel.: +421 02 207 00477 IBAN SK1731000000004080028908 SWIFT LUBASKBX The company is regitered in the Companies Register district Court Bratislava 1,

Section: Sro, Insert no.: 62822/B

VISUALISATION OF THE GROUP

Progroupe sediment solutions

Pte. Ltd.

Holding company

PROBASE s.r.o.

Asset entity

PROLAKE s.r.o.

Personal entity

PROGROUPE sediment removal

a.s.

European market

ESM s.r.o.

R&D entity

12

Company Mission

Progroupe is a young and innovative company which specializes in the cleaning, removing and dewatering

of sediments from the bottom of lakes, lagoons, canals, ponds, reservoirs or hydro power plants.

Silt, clay and sand slowly degrade water-dependent habitats in communities and commercial areas. Using

advanced dredging technology and techniques, Progroupe dramatically improves these environments by:

• Restoring the capacity of reservoirs

• Deepening and maintaining waterways & shipping channels

• Cleaning out lakes and ponds

Our company was formed from the natural needs of such activity. Our company is so far the only one in the

region of Central Europe, that offers dewatering services of this type.

Our company was founded in year 2012. Despite the young age of our company, we have many years’

experience constructed in cooperation with the company ProLake, which already operates in this area.

We collaborate closely with our industrial clients to develop customized processes and systems with the very

latest technology for all requirements in the field of removing and dewatering of sediments.

Our team has years of experience in the cleaning and dewatering sector, and is made up of versatile and

highly motivated specialists, who are at your disposal to react quickly and flexibly to your needs.

13

SOCIAL RESPONSIBILITY

Our effort is to offer possibilities of innovative solutions to reach sustainable development in modern water

industry. Our technology of mechanical dewatering of sediments brings not only an increased economic

efficiency in using of water reservoirs, but it also decreases immediately their environmental burden.

The basic idea of the technology was bringing an untraditional method of mechanical dewatering of

sediments using high speed centrifuges. In the time of increasing industrialization of bank areas of natural

water resources as well as water constructions, it was not possible to apply the classic "wet" way where

diluted sediments are pumped to lagoons to be dried naturally during a relatively long period of time.

By combining the know-how potential of our partners, choosing the appropriate technical gallery and

gradual increase of knowledge in the area, we have managed to build a company providing highly

professional services in water industry in revitalization of water areas. We are one of the few companies in

Central Europe that operates complexly suction and dewatering of bottom sediments with production up to

1,200 tons of dewatered sediments a day.

14

Organization structure

CEO

Production and execution

Production

Projection and construction

Storage and sale of SP

Execution

Operation of lines

Service

Measurement and research

Sales division

Marketing

PROGROUPE Singapore

Administration

Economic Division

Accouting SG

Accouting SK

Human resources

ISO, IT, archive

15

Management structure

Marek Beres, CEO, shareholder

Matej Socuvka

Shareholder, Head of Production and Execution

Department

Matej Beres

Head of Sales Department

Martin Hamran

Shareholder, Electricity specialist

Sona Vecerikova

Head of Administration Department

16

Financial Statements

NET ASSETS SUMMARY

Net assets summary

PG

in EUR Dec16 PB

Actual Dec16 PL

Actual

Dec16 PGSK Actual

Dec16 PGSG Actual

Dec16 ESM Actual correction

Consolidated amount

Intangible assets - 48 990 - - - 48 990

Land - - - - - -

Buildings - - - - - -

PP&E 1 200 162 - - 2 656 - 1 202 818

Other FA - - - 2 172 - 2 172

FA in acquisition 170 000 - - - - 170 000

Fixed assets 1 370 162 48 990 0 4 828 0 0 1 423 979

0

Other long term financial assets 8 750 - - - - -8 750 0

Financial assets 8 750 0 0 0 0 -8 750 0

Inventories 9 020 - - - 30 9 050

Trade receivables 228 839 239 152 206 161 435 128 88 815 -226 928 971 167

Trade payables (88 040) (41 956) (18 153) (249 474) - 226 928 (170 695)

IC payables - - 15 000 - - 15 000

Other current assets 1 275 1 410 346 10 855 1 238 15 125

Other current liabilities (20 175) (5 485) (21 762) (3 010) (4 029) (54 461)

Reported NWC 130 919 193 121 181 592 193 499 86 054 0 785 186

0

Cash and cash equivalents 129 233 28 748 5 077 51 072 5 497 219 626

Loans and borrowings (640 000) (285 000) (206 000) (77 136) (1 208 136)

Net financial cash / (debt) -510 767 -256 252 -200 923 51 072 -71 639 0 -988 510

0

Net assets 999 064 -14 141 -19 330 249 398 14 415 -8 750 1 220 655

17

EQUITY SUMMARY

Equity summary

in EUR Dec16 PB

Actual Dec16 PL

Actual

Dec16 PGSK Actual

Dec16 PGSG Actual

Dec16 ESM Actual correction

Consolidated amount

Share capital 8 000 34 000 25 000 7 610 6 640 (8 750) 72 500

Legal reserve 1 000 - 2 604 - 664 4 268

Other capital funds 1 100 000 5 000 - 26 942 1 131 942

Retained earnings (122 568) (59 693) (50 908) (15 122) (19 718) (268 008)

Profit for the current year 12 621 6 552 3 973 229 968 26 829 279 942

Equity 999 053 -14 141 -19 330 249 398 14 415 -8 750 1 220 645

18

STATEMENT OF COMPREHENSIVE INCOME (PROFITS AND LOSSES)

Profit & Loss statement

PG

in EUR

Dec16 PB

Actual

Dec16 PL

Actual

Dec16 PGSK

Actual

Dec16 PGSG

Actual

Dec16 ESM

Actual correction Consolidated

amount

Sale of own production 184 598 - - - - 184 598

Cost of own production (31 423) (13 063) (29 641) (6 311) - (80 438)

Sale of goods 1 380 - 9 020 - 1 820 12 220

Cost of goods sold - - - - (900) (900)

Sale of services 455 390 188 946 154 858 1 587 973 102 238 (910 342) 1 579 062

Gross profit 609 944 175 882 134 237 1 581 662 103 158 (910 342) 1 694 541

-

0

Material and energy (1 141) (4 671) - - (5 524) (11 335)

Services (202 634) (37 134) (114 732) (1 346 594) (62 823) 910 342 (853 574)

Personnel costs - (71 326) - - (9 325) (80 651)

Other OPEX (140 015) (54 051) (13 967) (2 407) (12 287) (222 727)

Financial income / (expense) 57 (728) (607) (4 112) 16 733 11 343

EBITDA 266 211 7 973 4 933 228 548 29 932 - 537 597

EBITDA % 42% 4% 3% 14% 29% 92%

-

Depreciation (252 623) (453) - - (2 143) (255 219)

Interest (5) 1 0 (6) - (10)

EBT 13 582 7 521 4 933 228 543 27 789 282 368

-

Income tax (961) (970) (960) - (960) (3 851)

Profit after tax 12 621 6 552 3 973 228 543 26 829 278 517

PROGROUPE SEDIMENT REMOVAL PTE. LTD | 21 Bukit Batok Crescent #29-73

Wcega Tower Singapore 658065