1

PKM DUDA SA

The condensed consolidated financial statements for the three months ended 31 March 2013

(In thousands of PLN)

CONSOLIDATED QUARTERLY REPORT

FOR THE 3 MONTHS ENDED MARCH 31, 2013

Legal status on 10 May 2013

The condensed consolidated financial statements of the PKM DUDA SA

FOR THE 3 MONTHS ENDED MARCH 31, 2013

Legal status on 10 May 2013

2

Financial Results 5

Condensed Profit and Loss 6

Condensed statement of comprehensive income 7

Condensed statement of financial position 8

CONDENSED STATEMENT OF CASH FLOWS 9

Condensed statement of changes in equity 11

Notes 13

1 Legal Information 13

2 Basis of preparation of the condensed financial statements 13

3 Significant accounting principles of accounting 14

4 Correction of error 14

5 Changes in estimates 14

6 Seasonality 14

7 Segment information 14

8 Cash and cash equivalents 20

9 Dividends paid and proposed to pay 20

10th Income tax expense 20

11th Intangible assets 20

12th Tangible fixed assets 21

12.1. Purchase and sales 21

12.2. Biological assets permanently 21

13th Inventories 21

13.1. Biological assets 21

14th Reserve 21

15th Interest-bearing loans and borrowings 22

16th Financial instruments 23

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17th Objectives and principles of financial risk management 23

18th Capital management 25

19th Contingent liabilities and contingent assets 25

20th Investment liabilities 31

21st Concise description of the achievements and failures of DUDA SA in the first quarter of 2012, along with a list of key developments 31

22 Shareholders holding directly or indirectly through subsidiaries, at least 5% of votes at the general meeting of Polish Meat Concern DUDA SA on the day of the quarterly report. 35

23 The shares of the Company Polish PKM DUDA SA or rights of other persons managing and supervising the day of the quarterly report, total with changes in ownership, the period since the last quarterly report for each of the people. 36

24th Transactions with related parties 36

25th Events after the balance sheet date 37

Selected financial data (separate report) 40

Condensed quarterly profit or loss (separate report) 41

CONDENSED BALANCE SHEET (separate report) 42

QUARTERLY CONDENSED CASH FLOW STATEMENT (separate report) 45

Condensed statement of changes in equity (separate report) 47

Notes 50

1 Legal Information 50

2 Basis of preparation of the condensed financial statements 50

3 Significant accounting principles (policy) Accounting 50

4 Changes in estimates of 54

5 Reserves 54

6 Concise description of achievements or failures of the PKM DUDA SA in the first quarter of 2012, in total with a list of key developments 54

7 Description of factors and events, especially atypical ones, having a significant impact on the financial results of 55

8 Seasonality 56

4

9 Financial instruments 56

10th Dividends paid and proposed to pay 56

11th Events after the balance sheet date 56

12th Contingent liabilities and contingent assets 56

5

Financial Results

in thousands. PLN in thousands. EUR

3 months ended on

3 months ended on

3 months ended on

3 months ended on

31-03-2013 31-03-2012 31-03-2013 31-03-2012

Net sales of products, goods and materials 461 176 509 099 110 493 121 940

Profit (loss) from operating activity 10 048 7 660 2 407 1 835

Profit (loss) before tax 5 997 1 635 1 437 392

Profit (loss) 5 945 -1 831 1 424 -439

Net cash flow from operating activities 18 319 -4 603 4 389 -1 103

Net cash flow from investing activities -2 465 1 002 -591 240.00

Net cash flow from financing activities -15 756 -1 421 -3 775 -340

Cash Flow net, total 98 -5 022 23 -1 203

On the day On the day On the day On the day

31-03-2013 31-03-2012 31-03-2013 31-03-2012

Total assets 748 763 789 880 179 241 189 802

Liabilities and provisions for liabilities 414 021 443 051 99 110 106 462

Long-term Liabilities 131 473 175 611 31 472 42 198

Contingent short-term 282 548 267 440 67 637 64 264

Capital 333 749 345 532 79 894 83 029

Registered Capital 278 002 278 002 66 549 66 802

Number of shares (units) 278 002

290 278 002

290 278 002

290 278 002

290

Earnings (loss) per a share (in PLN / EUR) 0.02 -0.01 0.01 0.00

Assets per share (in PLN / EUR) 1.20 1.24 0.29 0.30

For the conversion of the balance sheet in the form imputing the average NBP exchange rate on the last working day of each period:

- 4.1774 PLN / EUR of 31 March 2013

- 4.1616 PLN / EUR of 31 March 2012

For the conversion of the individual items in the profit and loss and cash flows used for equivalent courses:

- 4.1738 PLN / EUR for the period from 1 January to 31 March 2013

- 4.1750 PLN / EUR for the period from 1 January to 31 March 2012

6

Condensed Profit and Loss

for the 3 months ended 31 March 2013

Note 3 months ended on

31-03-2013

3 months ended on

31-03-2012

Continuing operations

Revenues from sales of products and services 205 570 268 045

Revenue from sale of goods 255 606 241 054

Revenues from sales 461 176 509 099

Cost of products sold and services 917 -184 -253 466

Cost of goods sold -226 371 -211 730

Cost of sales -411 288 -465 196

Profit / (loss) on sale 49 888 43 903

Other operating income 2 958 4 867

Cost of sales -29 919 -25 209

General and administrative expenses -11 645 -13 181

Other operating expenses -1 234 -2 720

Profit / (loss) from operations 10 048 7 660

Financial income 708 105

Financial expenses -4 759 -6 130

Profit / (loss) before tax 5 997 1 635

Income tax 10 -52 -3 466

Profit / (loss) from continuing operations 5 945 -1 831

Profit / (loss) for the period attributable to: 5 945 -1 831

- Equity holders of the parent company undertaking 5 960 -1 804

- minority shareholders -15 -27

Condensed statement of comprehensive income

for the 3 months ended 31 March 2013

3 months ended on

31-03-2013

3 months ended on

31-03-2012

Note

Profit / (loss) for the period 5 945 -1 831

Other comprehensive income 728 -863

Exchange differences on translation of subsidiaries operating abroad

728 -863

Other comprehensive income, net 6 673 -2 694

Total comprehensive income for the period attributable

6 673 -2 694

- Equity holders of the parent company undertaking

6 688 -2 667

- Minority Shareholders -15 -27

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Condensed statement of financial position

as on 31 March 2013

3 months ended on

period of 12

months ending on the

3 months ended on

Note 31-03-2013

31-12-2012

31-03-2012

ASSETS Not audited

Not audited

Fixed assets 474 493 476 480 488 888

Tangible fixed assets 12 323 580 325 898 327 730

Permanent biological assets 12.2 8 065 7 452 7 510

Real Estate Investment 26 477 26 605 26 289

Intangible assets 5 013 5 186 5 410

Goodwill 74 460 74 460 74 460

Relationships with customers 0 0 0

Trademark 20 400 20 400 20 400

Other financial assets (long-term) 498 479 313

Assets from deferred tax 15 951 15 951 26 728

Long-term prepaid expenses 49 49 48

Current assets 274 270 268 144 300 992

Reserves 13 46 510 38 251 57 350

Biological assets 13.1 30 035 29 046 26 793

Receivables for goods and services 155 736 164 788 173 669

Receivables from taxes, customs, insurance and other benefits

15 897 14 610 13 245

Other receivables 5 135 5 320 6 878

Other financial assets 10 32 977

Cash and cash equivalents 8 13 999 13 894 15 361

Short-term prepayments 6 948 2 203 6 719

Fixed assets classified as held for sale 0 0 0

Total assets 748 763 744 624 789 880

LIABILITIES

Equity (attributable to equity holders of the parent company)

333 749 327 061 345 532

Share capital 278 002 278 002 278 002

Supplementary capital 100 583 100 583 88 840

Exchange differences on translation of foreign operations

-17 489 -18 217 -17 793

Retained earnings / Accumulated losses -27 347 -33 307 -3 517

- Profit (loss) from previous -33 307 -13 456 -1 713

- Profit (loss) for the current period attributable to equity holders of the parent company

5 960 -19 851 -1 804

Non-controlling interests 993 1 006 1 297

Long-term liabilities 131 473 139 100 175 611

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Interest-bearing loans and borrowings 15 101 455 108 112 149 281

Provisions for liabilities for employee benefits 14 356 339 296

Lease liabilities 3 380 3 376 4 570

Liabilities due land 16 019 16 019 8 773

Other long term liabilities 0 0 332

Provision for deferred income tax 5 650 5 650 5 649

Deferred income 4 613 5 604 6 710

Short-term liabilities 282 548 277 457 267 440

Current portion of interest-bearing loans and borrowings 15 102 193 107 105 75 847

Trade payables and services 134 340 129 989 154 440

Liabilities from income tax 169 179 1 375

Liabilities due land 1 341 1 341 727

Lease liabilities 2 785 2 785 2 623

Contracts entered into factoring 14 742 14 602 0

Liabilities for employee benefits 6 105 5 915 6 765

Other current liabilities 8 672 6 795 12 184

Prepayments 5 472 3 795 4 141

Deferred income 3 619 1 925 4 466

Provisions for liabilities for employee benefits 14 46 74 3 123

Other reserves 14 3 064 2 952 1 749

Liabilities directly associated with non-current assets classified as held for sale

0 0 0

Total liabilities 414 021 416 557 443 051

Total equity and liabilities 748 763 744 624 789 880

CONDENSED STATEMENT OF CASH FLOWS

for the 3 months ended 31 March 2013

3 months ended on

3 months ended on

Note 31-03-2013

31-03-2012

Cash flows from operating activities

Profit / (loss) attributable to the parent company shareholders

5 960 -1 804

Adjustments for: 12 359 -2 799

Profits controlling -15 -27

Depreciation 6 003 6 724

(Profit) / loss foreign exchange differences 10 125

(Profit) / loss on investing activities -98 -1 011

(Increase) / decrease in receivables 15 061 -50 520

(Increase) / decrease in inventories -8 997 -10 320

Increase / (decrease) in liabilities with the exception of credit and loans

-794 51 282

Dividends 0 -2

Interest income -363 -540

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Interest expense 3 834 4 146

Change in accruals -2 465 -2 772

Change in provisions 129 85

Income tax paid 0 53

Other 54 -34

Net cash provided by operating activities 18 319 -4 603

Cash flows from investing activities

Sale of tangible fixed assets and intangible assets 693 4 645

Purchase of property, plant and equipment and intangible assets

-3 551 -4 057

Sale of investment property 372 250

Interest received 21 59

Repayment of loans 0 105

Net cash used in investing activities -2 465 1 002

Cash flows from financing activities

Proceeds from issue of shares 0 96

Repayment of obligations under finance leases -661 -696

Proceeds from loans / credit 6 912 19 893

Repayment of loans / credit -19 202 -16 355

Dividends paid 0 -266

Interest paid -2 805 -4 093

Net cash from financing activities -15 756 -1 421

Increase / (decrease) in cash and cash equivalents 98 -5 022

Net foreign exchange differences 7 -67

Cash and cash equivalents at beginning of period 13 894 20 450

Cash and cash equivalents at end of period 13 999 15 361

- Including the limited disposal 0 0

/ 10

/ 10

10

Condensed statement of changes in equity

for the 3 months ended 31 March 2013

Share

capital

Supplementary

capital

Exchange

differences on

translation of

foreign

Other

reserve

capital

Retained

earnings /

accumulated

losses

Net profit for

the current

period

Own shares Capital on

redemption

of own

shares

Non-

controlling

interests

Gross

Equity

For on 01 January 2012 278 002 83 445 -16 930 0 3 682 0 1 495 349 694

Correction of error 0

On 01 January 2012 after adjustments 278 002 83 445 -16 930 0 3 682 0 0 0 1 495 349 694

Net profit / loss for the period -1 804 -26 -1 830

Other comprehensive income for the period -863 -863

Issue of shares 95 95

Cost of share issue 0

Purchase of own shares 0

Sales of subsidiaries 0

Division of profit / loss coverage 5 395 -5 395 -267 -267

Adjustment of the result from previous 0

Capital - redemption of own shares 0

Redemption of own shares 0

At 31 March 2012 278 002 88 840 -17 793 0 -1 713 -1 804 0 0 1 297 346 829

For on 01 January 2013 278 002 100 583 -18 217 0 -33 307 0 0 0 1 006 328 067

Correction of an error 0 0

For on 01 January 2013 after adjustments 278 002 100 583 -18 217 0 -33 307 0 0 0 1 006 328 067

Net profit / loss for the period 5 960 -15 5 945

Other comprehensive income for the period 728 2 730

Issue of shares / stakes 0 0

Cost of share issue 0

Purchase of own shares 0 0

Sales of subsidiaries 0 0

Division of profit / loss coverage 0 0 0

Adjustment of the result from previous 0 0

Capital - redemption of own shares 0 0 0

Redemption of own shares 0 0

At 31 March 2013 278 002 100 583 -17 489 0 -33 307 5 960 0 0 993 334 742

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Notes

1. General Information

The Parent company PKM DUDA (hereinafter referred to as Grupa Kapitalowa PKM DUDA SA (hereinafter referred to as the Parent Company). The parent company of the Group, was established based on Notarial Deed dated 12 December 2001 and registered on 21 February 2002. The Company operates in the territory of the entire country on the basis of the Commercial Companies Code. The Parent Company is registered in the register of the National Court Register kept by the District Court for the City of Warsaw Division of the National Court Register, under KRS number 0000094093, the parent company was given REGON number 411141076. Shares of the Parent company have been listed on the Warsaw Stock Exchange.

Company's registered office is located at Kłobucka 25 Street, 25, 02-699 Warsaw.

Object of the activity of PKM DUDA SA by NACE codes:

Designated Operations NACE code

Breeding pigs 01.46.Z

Support service activities and animal farming 01.62.Z

Processing and preserving of meat, excluding meat of poultry 10.11.Z

Processing and preserving of poultry meat 10.12.Z

Production of meat, including poultry meat products 10.13.Z

Growing of cereals, leguminous crops and oil seeds except rice 01.11.Z

Growing of crops combined with farming of animals (mixed farming) 01.50.Z

Support activities for crop production 01.61.Z

Meat Service - liquidation

The Management Board of the Polish Meat Concern DUDA SA with its registered office in Warsaw on 20 February 2013 advised (in Report No. 07/2012), and on February 12, 2013, the District Court for the Capital City of Warsaw, XIII Commercial Division of the National Court issued a decision the removal from the Register of Entrepreneurs its subsidiaries, operating under the name Meat Service Ltd. in liquidation. There has been removed from the register on 13 February 2013, thus ending the process of liquidation of the company.

On 10 May 2013 and accompanying condensed consolidated financial statements of the Company for the three months ended 31 March 2013 were authorized for issue.

2. Basis of preparation Conego turn of financial statements

These interim condensed consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (MSSF), in particular in accordance with IAS 34 and IFRS as adopted by the EU. On the day of approval of these financial statements, taking into account the ongoing process in the EU implementation of IFRS and the Group's activities, the policies applied by the Group's accounting policies there is no difference between the IFRS standards that came into force, and the IFRS as adopted by the EU - IFRS comprise standards and interpretations adopted by the International Accounting Standards Board ( RMSR ) and the Committee on International Financial Reporting Interpretations ( KIMSF ). This a quarterly condensed consolidated financial

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statements are presented in PLN (PLN) and all values, unless otherwise stated, are in thousand PLN.

Quarterly condensed consolidated financial statements do not include all information and disclosures required in the annual consolidated financial statements and should be read total with the consolidated financial statements of the Group for the year ended 31-12-2012.

3. Significant rules (policies) of accounting

Principles (policy) applied to the preparation of interim condensed financial statements are consistent with those followed in the preparation of the annual financial statements for the year ended December 31, 2012.

4. Correction of an error

In the current period, the Group did not restate earnings.

5. Changing in estimations

In the reporting period, changes in estimates did not take place.

The Board took over estimates mainly the following values: provisions, real estate investments and write-downs (including fixed assets, accounts receivable, inventories, goodwill) and income tax asset.

6. Seasonality of business activities

Structure of the Capital Group operating in various segments causes and we have to deal with seasonality factors. The domestic consumption of meat and meat products is a noticeable increase in turnover during the periods preceding Christmas and Easter.

In addition, seasonality is evident in the activities of companies in the agricultural segment, especially in the segment of the production plant, where the greatest activity coincides with the period in spring and autumn.

The game area (Wild Hunter and Duda Distribution) is highly dependent on the hunting season in Poland "The seasonality of sales is characterized by the fact that the biggest sale of these companies occurs in the fourth quarter.

7. Information on and which segments of the business activities

The activities of the Group in the first quarter of 2013 was concentrated in six main areas. According to the partition of all the companies belonging to the Capital Group PKM Duda were assigned to five segments: manufacturing, commercial, farm animal, vegetable farming, and the others.

Due the continued restructuring of the management decided to change the segmentation of the Group, in order to obtain a fuller transparency at operating segments.

Below graphically important companies of the Group PKM Duda have been allocated to each of the links in the value chain of the meat industry.

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Management monitors the operating results of the segments in order to make decisions regarding the allocation of resources, assessment of the allocation and performance assessment. Basis for the assessment of performance is the gain or loss on operating activities, which to a certain extent, as explained in the table below, is measured differently from profit or loss on operating activities in the consolidated report.

Prices in the transactions between operating segments are determined on the basis as in transactions with unrelated parties.

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Operating Segments

3 months ended 31 March 2013

Continuing operations

Production

Segment

Commercial

segment

Segment

farm

animal

Segment

vegetable

farm

Other Total Discontinued

Operations

Corrections Total

Operations

Revenues

Sales to external customers

157 801 290 801 3 581 1 413 7 581 461 176

0 0 461 176

Sales between segments

8 283 31 28 243 688 14 258

51 504

0 -51 504 0

Segment income 166 084 290 831 31 824 2 101 21 839

512 680

0 -51 504 461 176

Results

Segment operating result

2 253 5 393 2 086 800 -457 10 075

0 -27 10 048

Other information

Investment outlays 303 842 1 218 169 1 019 3 551

0 0 3 551

Depreciation 1 867 2 144 1 223 212 595 6 041

0 -39 6 003

Segment assets 488 054 255 295 195 203 46 155 95 345

1 080 053

0 -331 289 748 763

Fixed assets 363 358 117 868 127 003 35 256 65 162

708 647

0 -234 154 474 493

Current assets 124 696 137 427 68 200 10 899 30 206

371 429

0 -97 159 274 270

Additions of intersegment transactions are eliminated on consolidation.

1. Segment operating profit of not having an income for the financial amount of 708 thousand. PLN and the financial cost of 4 759 thousand. PLN. Segment operating profit includes gains from the sale between segments.

2. Segment assets do not include consolidation IAS adjustments because of management and are stripped and at the Group level.

Summary of IAS adjustments (in thous.) Impact on asset groups:

property valuation - 7 692

impairment charges. permanent loss - 97 550

CSBF correction - 876

separation of character and relationships Makton and Stół Polski

- 1 389

SAPARD costs PKM - 78

3. Corresponding investment and property acquisitions in the ongoing activity and value of intangible assets.

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Period of three months ended March 31, 2012

Continuing operations Production

Segment

Commercial

segment

Segment

farm

animal

Segment

vegetable

farm

Other Total Discontinued

Operations

Corrections Total

Operations

Revenues

Sales to external customers

231 680 267 219 888 2 511 6 801 509 099

0 0 509 099

Sales between segments

32 641 22 547 17 021 571 11 176

83 957

0 -83 957 0

Segment income 264 321 289 766 17 909 3 082 17 978

593 056

0 -83 957 509 099

0 0 0 0 0 0 0 0 0

Results 0 0 0 0 0 0 0 0 0

OPERATIONAL Segment Result

-4 310 7 676 3 263 1 372 -341 7 660

0 0 7 660

0 0 0 0 0 0 0 0 0

Other information 0 0 0 0 0 0 0 0 0

Investment outlays 321 1 209 2 179 0 348 4 057

0 0 4 057

Depreciation 2 390 2 307 1 113 193 721 6 724

0 0 6 724

Segment assets 540 921 258 308 206 912 59 651 82 441

1 148 233

0 -358 353 789 880

Fixed assets 387 132 121 659 134 722 39 807 23 595

706 915

0 027 -218 488 888

Current assets 153 789 136 650 72 190 19 844 28 901

411 374

0 -110 382 300 992

4. Income from transactions and between segments are eliminated in the consolidation.

5. Segment operating profit of not having an income for the financial amount of 105 thousand. PLN and the cost of the financial PLN 6 130 thousand. PLN. Segment operating profit includes gains from the sale between segments.

6. Segment assets do not include June consolidation and adjustments because of management at the Group level.

Summary of IAS adjustments (in thous.) Impact on asset groups:

sci property valuation - 8 658

impairment charges - 97 550

CSBF correction - 872

Makton and Stol Poliski - 1 389

SAPARD costs PKM - 134

7. Corresponding investment and property acquisitions in the ongoing activity and value of intangible assets.

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1. Measures of cash and cash equivalents

For the purposes of the quarterly condensed statement of cash flows, cash and cash equivalents consist of the following items:

As of 31-03-2013 As of 31-12-2012 As of 31-03-2012

Cash at bank and in hand 11 021 10 077 11 350

Short-term deposits 1 561 2 954 4 011

Cash in transit 1 417 863 0

Cash at bank and in hand 13 999 13 894 15 361

2. Dividends safeguarding cash and proposed safeguarding and charges

The parent company does not plan to pay dividends.

3. Income tax

Major components of income tax in the profit and loss account as follows:

3 months ended on

31-03-2013

3 months ended on

31-03-2012

Current income tax -52 -3 525

Current income tax assets -52 -3 525

Deferred income tax 0 59

Relating to origination and reversal of temporary differences 0 59

Income tax expense in the income statement / statement of comprehensive income

-52 -3 466

4. Intangible assets

As of 31-03-2013 As of 31-12-2012 As of 31-03-2012

Patents and licenses 4 994 5 185 3 985

- Including computer software 4 972 5 164 3 151

Advances on intangible assets 19 1 1 425

Total: 5 013 5 186 5 410

5. Tangible fixed assets

1. Buying and selling

During the three months ended March 31, 2013, the Group acquired tangible fixed assets and intangible assets for the price of 3 551 thousand. PLN (during the three months ended 31 March 2012: 4 057 thousand. PLN).

During the three months ended March 31, 2013, the Company sold certain tangible assets and inflows reached in the amount of 693 thousand. PLN (during the three months ended 31 March 2012: 4 645 thousand PLN).

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2. Biological assets

The Group owns a breeding herd, which includes the value of biological assets to fixed assets.

During the three months ended March 31, 2013, the Group did not make any significant write-downs for impairment.

6. Reserves

1. Biological assets

Biological assets are breeding animals (pigs) and cultivated plants. Agricultural activity is the management by an entity biological transformation that aim to achieve the Enable agricultural products and other biological assets held for sale. Collective or acquisition is the point at which the separation of agricultural products (agricultural raw materials) from a biological asset or the cessation of a biological asset's life processes.

Biological assets are measured on initial recognition and at each balance sheet date at fair value less cost to sell. Company measures the cost of production by biological asset for which there is no coming from the market price or value of, and alternative estimates of fair value are deemed to be highly unreliable. In particular is the case when there are significant discrepancies between the estimates received.

Valuation income products

Finished products classified as biological assets are valued in accordance with the MSR41, based on fair value.

Valuation of disposal products

Value of disposal products, including wear and sale, is agreed by the rules - the "first in - first out" (FIFO).

7. Provisions

As of 31-03-2013

As of 31-12-2012

As of 31-03-2012

Provision for restructuring (current) 0 0 855

Pension 334 334 291

The incentive for managers 0 74 2 268

Administrative penalties 240 240 240

Marketing activities 0 0 97

Lawsuits 127 127 228

Provision for costs associated with the redemption of the ground

584 383 0

Provision (non-competitive) 450 600 0

Provision for fattening services 10 111 0

Provision for payment of lease (Ukraine) 1 157 935 0

Provision for liabilities of producer groups 408 398 944

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Other 156 163 245

8. Interest-bearing bank loans and the loan

In the current accounting period of the company in the Group conducted the following agreements:

1. Loan Agreement contained in the account opened on 19 March 2013 between Privat Bank SA with its registered office in the town of Dnipropotrovsk and the company DH Rosana Rosan-Agro Sp. z o.o. in the amount of UAH 1,250,000 to finance current operations. The repayment date is the day 18 March 2014 , the interest rate of the loan is 22%.

2. Factoring Agreement No. 58/03/2013 dated 29.03.2013 concluded between Bank BPH SA with its registered seat in Krakow and a NetBrokers POLAND Sp. z o.o. with its registered seat each partnership and (factoree) in the amount of 2.5 million to finance current business for more business of economic factorer. The term of payment falls on 28.03.2014, the interest rate is WIBOR 1M + with a bank or EURIBOR 1M + with a bank.

3. Annex 2 to the Agreement on the syndicated loan consolidation (UKKK) concluded on 18 March 2013 agreement that between the West Bank WBK SA with its registered seat in Warsaw and the Bank Polish Pekao SA, with its registered office in Warsaw and, General Savings Polish Bank SA with its registered seat in Warsaw and ING Bank Slaski SA, with its registered office and in Katowice, BRE Bank SA, with its registered office and in Warsaw, Bank Handlowy w Warszawie SA, with its registered office in Warsaw and (Banks) and PKM DUDA SA in the amount of 102,907,989.69 from l to repay an obligation n PKM DUDA SA against banks that existed before signing UKKK on 23 December 2009. Term repayment remains unchanged, the interest rate is WIBOR 1M + bank margin.

4. Amendment No. 3 to the Agreement for working capital loan included on 6 February 2013 agreement that between the West Bank WBK SA with its registered seat in Warsaw and a PKM DUDA SA in the amount of PLN 00 10.000.0 to finance current operations. The repayment date is the day of July 12, 2013, the interest rate is WIBOR 1M + margin of the Bank.

5. Amendment No. 9 to the Loan Agreement in the form of a multipurpose credit limit set out on 12 February 2013 between the General Agreement Polish Savings Bank SA with its registered seat in Warsaw and PKM DUDA SA in the amount of PLN 25,800,000 for the purpose of financing the current credit and refinancing. The repayment date is the day n December 16, 2013, the interest rate is WIBOR 1M + margin of the Bank.

6. Annex 2 to the Agreement on the discounting of receivables included on 6 February 2013 between the West Bank WBK SA with its registered seat in Warsaw and PKM DUDA SA for financing through the acquisition by the Bank of receivables from the sale of goods / services to limit the amount of PLN 25,000,000 . The limit has been granted for a period up to 21 July 2013, the interest rate WIBOR 1M + margin of the Bank.

7. Amendment No. 2 to the factoring contained on 2 January 2013 between Pekao SA with its registered office in Lublin and PKM DUDA SA for financing through the acquisition of the Bank's receivables from the sale of goods / services to limit the amount of PLN 15,000,000. The interest rate is WIBOR 1M + margin Factor.

8. Amendment No. 1 to the Agreement overdraft concluded on 27 February 2013 between Alior Bank SA with its registered office in Warsaw and the Company Pork Pro Sp. z o.o., a limited partnership in the amount of PLN 2,000,000 to finance current operations. The repayment date is the day n ≥ 3 March 2014, the interest rate is WIBOR 1M + margin of the Bank.

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9. Amendment No. 2 to the overdraft concluded on 15 March 2013 between Alior Bank SA with its registered seat in Warsaw and the Company Pork Pro Sp. z o.o., a limited partnership in the amount of PLN 2,000,000 to finance current operations. The repayment date is the day n ≥ 3 March 2014, the interest rate is WIBOR 1M + margin of the Bank.

9. Financial Instruments

During the reporting period, there were no significant changes in the use of financial instruments.

10. Objectives and principles of management and financial risk

management

Risks to which the Group is exposed are:

• market risk, including currency risk and interest rate risk, • credit risk; • liquidity risk.

Financial Risk Management Capital Group is coordinated by the parent company, in close cooperation with management and chief financial subsidiaries. In the process of risk management the most important wage have the following objectives:

• The preparation of financial statements, • securing short-term and medium-term cash flow • varies due the stabilization of the Group's financial • financial forecasts by up to its budgetary • achievement of long-term rate of return on investment and securing optimal funding

of work investment.

The group does not enter into transactions on financial markets for speculative purposes. On the economic side, transactions are cross-hedging against specific risks.

In addition the Group formally designated portion of derivative instruments as cash flow hedges and fair value in accordance with IAS 39 (Hedging derivatives).

Description of key risks

The risk of macroeconomic impact on the Company's results

Most of the Company's sales are realized in Poland. In connection with the performance of the Company are indirect subsidiaries of such macroeconomic variables such as GDP growth, unemployment, inflation and interest rates or the growth rate of salaries. They influence the financial condition of those involved in trade and purchasing power of end customers. Any slowdown in economic growth and the deterioration of macroeconomic indicators could affect the financial results achieved by the Company. Broadly defined food industry in which the Company operates is less exposed to the risk of recession than other branches of the economy, because demand for most food products, in particular meat, is stiff.

The risk associated with the guarantees given by PKM Duda to Group companies

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The Group companies in recent periods have concluded a number of credit agreement, whose purpose was to obtain financing for their current economic activity or of carrying out of specific investments. It should be noted that one of the types of collateral for the above. Credit commitments are guarantees issued by PKM Duda. The parent company in recent times has issued guarantees for lease to subsidiaries in Ukraine. Measures of leases have been used to purchase hardware and farm machinery.

Risk can not be excluded that in the case of overdue repayments of loans taken by the companies of the Group will be guided by individual banks to holders of the parent company task performance obligations under the sureties. Moreover, failure to pay the banks of sureties or indeed abolished the implementation of such payment may result in a material respectively and payable Liabilities to banks or significant decrease in cash or wealth holders of the parent company, which in turn may have a material adverse effect on the business, financial condition and reaches results of the companies of the Group.

The risk associated with the exchange rate

PKM Duda is both exporter and importer in connection with what has open currency positions. Accordingly, the exchange rate has impact on the financial results of PKM Duda. In addition, it should be noted, and the strengthening of the PLN against other currencies weaken competitiveness on foreign markets and adversely affect the Company's export development. At the same time should be stressed that the contracts signed by the Company are clauses which allow quarterly price changes arising from changes in foreign exchange rates. On the other hand, weakness of the PLN against foreign currencies increases export sales profitability. Investors should note, and in the past PKM Duda entered into a number of foreign exchange transactions, on which suffered material loss on an individual level, as and consolidated. Currently the Company to hedge open currency position does not apply hedging as currency options limited to, forward transactions, but should not be ruled out, and in the future will enter into hedging transactions, which the unfavorable exchange rate developments may adversely affect the Company's financial results.

The risk associated with the value of assets

Keeping in future periods unsatisfactory results of the parent company undertaking may require the Company to write-offs and changes in asset values negatively affecting the financial result.

The risk associated with persistent low of herds of pigs and a rise in its prices

As a result, low and declining for several , the number of pigs in Poland livestock purchase price persists at a high level and despite the decline in the fourth quarter of 2012, in the first quarter of 2013 has increased reaching in April 2013, the level of 5.33 cents / kg a few percent higher than that recorded in the same period of 2012, the market situation also due declining number of pigs in the EU and the very high prices of raw materials feed. Market analysts at indicate that the record corn and soybean prices in the global market, a very high price of pigs will probably have had to increase in order to ensure long term benefit of this type of production.

The risk associated with deteriorating financial situation of certain entities operating in the meat industry

Recently, in particular during the times when Poland was joining the European Union, many companies in the meat industry invested heavily, often using the preferential credit, which assumed grace period for several . At the turn of 2008-2009 arrive in most cases

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grace periods. Today, many companies in the meat industry operates on very low margins, and many of them recorded negative financial results. In this connection, there is a risk, and the financial surplus from operations will not be sufficient to cover payments of capital credit. This can lead to situations of individual entities that finance institutions denunciation them credit, and this may lead to a possibility of an arrangement or bankruptcy of some operators. This situation could be a benefit to the Group, as it could abruptly increase the market share in the decadent competitors. On the other hand, the Capital Group's business model entails close relations with many bets in the meat industry by providing them half and industrial months and then receive their meat products. There is a risk of deterioration in meat processing plants may result that the Group will not be able to co-operate with those bets, which does not get the credit limit, be the limit will be reduced, which could have a negative impact on the Group's financial position.

The risk of being dependent on the agreement of a syndicated loan consolidation

PKM Duda on 23-12-2009 entered into a an agreement on the syndicated loan consolidation pursuant to which the Company has granted six banks loan facility in the amount of over PLN 102.9 million for the purpose of refinancing the financial liabilities of the parent company undertaking under loan agreements entered into with the hereinabove banks. The agreement was concluded in the framework of the implementation of the recovery plan. On the basis of a syndicated loan consolidation, the repayment date above. obligations to be more than due the credit agreement originally entered into a date that is not later than 31-12-2015 year allowing the company better debt management.

Considering the importance of the agreement for a syndicated loan for consolidation opportunities to ensure the continuation of the Group, the Company is a subsidiary. At the same time, the Company can not exclude the risk of losing the ability to service the debt to which it is subject or breach of loan covenants, which would result in lenders permission to bring in foreclosure feasibility total debt to those entities and, consequently, would have a material adverse effect on the business, financial condition and results of PKM Duda.

So far, cooperation with banks on impact with properly as on 30 June 2012 Banks released the Company from its obligation to provide a certain level of financial indicator 1 (in thought Agreement Syndicated Loan Consolidation).

11. The capital management

As part of the Restructuring, the Company improved its working capital management through optimization of timely payments, inventory optimization and the introduction of a recurring cash flow planning. The instrument supports the management of working capital financing was in the form of factoring, which the Company believes significantly improved payment discipline debtors.

12. Liabilities and solutions and Contingent Assets

Significant Litigation and Enforcement, whose website is (was) PKM DUDA SA are explained in point. 12 the condensed quarterly report for the three months ended March 31, 2013.

A detailed list of court proceedings in which a party are the companies of the Group have been described in the annual consolidated financial statements for the year 2012. In the current reporting period, significant changes have occurred in the following cases:

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PKM DUDA SA

Cases brought by PKM DUDA SA

PKM Duda SA (as successor Meat Centre Makton SA) c / a Marek Stasiak KRY-MAR - matter of reward (WPS: 288,594.62 PLN): Issued order payment must be sent prescriptive. An application for protection. An application execution. On 22.02.2013, the Company received a letter from the judicial officer to hear the creditor before the redemption proceedings.

PKM Duda SA (as successor Meat Centre Makton SA) c / a INBASK Krzysztof Broda-case the reward (WPS: 247,273.20 PLN): Issued warrant payment. An application execution. The Collector advised on the sale by the debtor and his wife home to parent companys debtor. Obtained a copy of the contract for sale of the Land Registry Act. Filed notice of the suspected offense (with Art. 300 of the Penal Code - the frustration of enforcement orchard through the sale of property).

PKM Duda SA (as successor Meat Centre Makton SA) c / a Bogdan Nowik BONO - matter of reward (WPS: 214,138.19 PLN) - given the order payment. Enforcement proceedings are pending.

PKM Duda SA (as successor Meat Centre Makton SA) c / a Michał Charewicz - matter of reward (WPS: 221 305.34 PLN): Issued warrant payment. An application execution. The debtor has proposed a settlement - Talks on the approval of the agreement.

PKM Duda SA (as successor Meat Centre Makton SA) c / a meat plants Dabrowno Sp. z o.o. - a matter of reward (WPS: 338,126.42 PLN): Order payable on 11.12.2012 the On 15.03.2013, the Company submitted an application for granting the above. injunction enforceable.

PKM Duda SA (as successor Meat Centre Makton SA) c / a Karol Bocko, Radoslaw Balicki - matter of reward (WPS: 352 131,55 PLN): Issued order payment must be sent writ dated 30.11.2012 Waiting for an order becomes final.

PKM DUDA SA c / a butchery - Wedliniarstwo WITKIEWICZ Sp. J. - matter of reward, based on the deed to the amount of 300.000,00 PLN (prepared by Mariola Bortel Notaries, Notary in Leszno, Repertory "A" No. 4196/2003), on the basis of which the debtor surrendered control enforcement in accordance with Article . 777 § 1 point. 5 KPC. Enforcement proceedings (file HP 1172-1106) brought by the Bailiff, the auction of the debtor's property has not led to the expected results. Execution in progress.

PKM DUDA SA c / a Sky Share sp. - Matter of reward before the Court of Arbitration (file SA 276/11, WPS: 62,500,000 USD) - The proceedings were terminated judgment dated 15.03.2013, in which the Court of Arbitration planted for PKM DUDA SA the amount of 62.5 million USD. Clausal proceedings are pending.

PKM DUDA SA c / a Powertek Ltd. - matter of reward (WPS: 187,709.97 PLN) - filed a claim for payment under date of December 7, 2011 year. The court issued a judgment taking into account the action. On December 4, 2012, the Company received a decision on granting the lawful judgment enforceable entitlement to enforce the judgment in full. Planted from the defendant to the plaintiff amount of money 187 709.97 PLN with statutory interest from the date of March 6, 2010 on the date of payment and 13 003 PLN for the costs of the proceedings. An agreement with the debtor - repayment installments.

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PKM DUDA SA c / a "JABLONNE" Trusiak K. & K. Iwanski general partnership - matter of reward (file HP 1122-1112, WPS: 202,932.81 PLN) - action for payment must be sent prescriptive filed under date of March 2, 2012 year. On the basis of a warrant obtained by writ of payment must be sent to Court, on May 14, 2012, we continued to clause. Currently, the case is located at the stage of enforcement proceedings conducted by the enforcement officer. As a result of the conduct bailiff recovered steadily forward amount. Auction took place and movable assets of the debtor, but was unsuccessful. A motion for the appointment of the second term bid.

Bankruptcy - PKM DUDA SA as creditors:

PKM Duda SA (as successor Meat Centre Makton SA) c / a - Wholesale feed-food Retail Wieslaw Sobotka - Bankruptcy (Report receivables for the amount of 455 170,24 PLN). CM MAKTON SA reported amount of money 426,740.59 PLN in the fourth category and the amount of money 28,429.65 PLN in the fifth category. A requirement CM MAKTON SA has been considered in its entirety, except the nearly nine PLN (wrong calculation of interest). At the end of September 2012 was filed by the trustee list of receivables in the Orchard. Receivables list has not yet been approved by the judge.

PKM Duda SA (as successor Meat Centre Makton SA) vs IKA Ltd. (WPS PLNen 340,220.22) - on 1 June 2011, reported the claim in the bankruptcy proceedings. Currently, under a bankruptcy procedure including liquidation property. In January 2012, was presented by the trustee draft list of receivables. CM Makton claim was covered entirely in category IV. By order dated 12.03.2012, it was stated Conclusion of bankruptcy proceedings. Plan allocation of funds has been funded partly by weight category and in the amount of 38.03%. CM claim MAKTON SA was classified in category IV.

PKM Duda SA (as successor Meat Centre Makton SA) - Piotr Wieczorek conducting business under the firm meat plants Wieczorek - (bankruptcy liquidation of assets, ref. Act V GUp 6/08)

In December 2008, the bankruptcy estate was reported, recognized and published in a bankruptcy claim EUROOSMAK Ltd. (the principal of orders for payment in the amount of 272 905.85 PLN, interest in the amount of 44 762,90 PLN, the costs for garden planted orders payment in the amount of 3 658 PLN, the costs of legal representation planted payment orders in the amount of 8 400 PLN) and CM Makton SA (the principal in the amount of 831.70 PLN). As a result of unresolved bargaining yielded no successful purchaser company (not an offer was made). The trustee has a possibility of obtaining an investor in the free choice of the offer. In 2011 and 2012, were published a notice of the sale of the property, for which received no offer. Work is underway to update the valuation of the property. Bankruptcy in progress. In October 2012, we received the information, and continues to seek buyers of fixed assets ZM.

PKM DUDA SA c / a PMB SA - matter of reward (file IX GC 127/12/2, WPS: 126,054.16 PLN) - filed a lawsuit for payment under the date of 30 November 2011. Obtained a warrant payment must be sent writ, from whose opposition was filed. PKM DUDA SA filed its response to the present opposition. Sad May 14, 2012, she released a verdict in favor of PKM DUDA SA a whole claim. The ruling is final. 11 July 2012 the PKM DUDA SA filed insolvency proceedings PMB SA Currently, the inventory of the property of a bankrupt company. PKM DUDA SA expects to draw up a plan of liquidation.

PKM DUDA SA c / a meat plants MAT Czerniewice Ltd. - matter of reward (file IX GC 247/12/3, WPS: 1,296,491.39 PLN) - claim for payment received by writ filed at the date Feb 02, 2012. On the basis of a warrant obtained by writ of payment must be sent from whose

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opposition was filed. PKM DUDA SA filed its response to the present opposition. At the hearing on May 11, 2012, the Court pronounced its verdict balance among the PKM DUDA SA On 17 April 2012, the defendant company filed in the District Court in Wloclawek a bankruptcy petition, which was registered under the signature V GU 11/12. On May 15, 2012, the District Court in Wloclawek announced bankruptcy including liquidation of the debtor's assets. As on 04th July 2012 the PKM DUDA SA receivables Commissioner submitted to the judge in bankruptcy. Currently, the inventory of the property of a bankrupt company. PKM DUDA SA expects to draw up a plan of liquidation.

PKM DUDA SA c / a meat plants MAT Czerniewice Ltd. - matter of reward (file IX GNc 179/12/5, WPS: 861,221.46 PLN) - claim for payment received by writ filed at the date of February 14 2012, on the basis of a warrant obtained payment must be sent prescriptive. - We now expect the implementation of the order for payment in August. PKM DUDA SA filed an application for the enforcement Bailiff security claims (file HP 1309-1312). On 17 April 2012, the defendant company filed in the District Court in Wloclawek a bankruptcy petition, which was registered under the signature V GU 11/12. On May 15, 2012, the District Court in Wloclawek announced bankruptcy including liquidation of the debtor's assets. Due above stayed the proceedings Hedging bailiff. As on 04th July 2012 the PKM DUDA SA receivables Commissioner submitted to the judge in bankruptcy. Currently, the inventory of the property of a bankrupt company. PKM DUDA SA expects to draw up a plan of liquidation.

PKM DUDA SA c / a meat plants MAT Czerniewice Ltd. - matter of reward (file IX GC 216/12/3, WPS: 170,495.64 PLN) - action for payment must be sent at the date of the writ filed Feb. 16 2012 . On the basis of the payment order was issued in the writ proceedings, from whose opposition was filed. PKM DUDA SA filed its response to the present opposition. Sad scheduled a hearing on on 06 July 2012. On 17 April 2012, the defendant company filed in the District Court in Wloclawek a bankruptcy petition, which was registered under the signature V GU 11/12. On May 15, 2012, the District Court in Wloclawek announced bankruptcy including liquidation of the debtor's assets. As a result of the above legal proceedings reward has been suspended. As on 04th July 2012 the PKM DUDA SA receivables Commissioner submitted to the judge in bankruptcy. Currently, the inventory of the property of a bankrupt company. PKM DUDA SA expects to draw up a plan of liquidation.

PKM DUDA SA c / a meat plants MAT Czerniewice Ltd. - matter of reward (file IX GC 326/12/7, WPS: 596,310.39 PLN) - action for payment must be sent writ filed at the date of March 7 2012 . On the basis of a warrant obtained by writ of payment must be sent from whose opposition was filed. PKM DUDA SA filed its response to the present opposition. The court scheduled a hearing for May 29, 2012. On 17 April 2012, the defendant company filed in the District Court in Wloclawek a bankruptcy petition, which was registered under the signature V GU 11/12. On May 15, 2012, the District Court in Wloclawek announced bankruptcy including liquidation of the debtor's assets. As a result of the above legal proceedings reward has been suspended. As on 04th July 2012 the PKM DUDA SA receivables Commissioner submitted to the judge in bankruptcy. Currently, the inventory of the property of a bankrupt company. PKM DUDA SA expects to draw up a plan of liquidation.

The case before the Court of Competition and Consumer Protection

PKM Duda SA (as successor Meat Centre Makton SA) and companies outside the Group - the proceedings before the OCCP on restrictive business practices involving the agreement, whose purpose was to rigid pricing of goods for sale. This procedure was also performed with the Company Stół Polski Ltd., however, the President of the OCCP's decision of 9 December 2010, the antitrust proceedings against the Company were canceled in

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connection with the acquisition of a company by CM CM MAKTON Makton SA SA submitted a proposal for renouncement or lowering the fine in connection with the recognition that the conditions entitling to appeal for leniency program applies. Antitrust proceedings terminated by a decision of the President of the Office of the 28/12/2011 to waive the imposition of sanctions against MAKTON. The production by the other parties of antitrust appeal from w / in the decision is pending in this case, the proceedings before the Court of Competition and Consumer Protection. In this situation, Management Board does not see the necessity of the provision.

Case of Administration:

PKM Duda SA (as successor Meat Centre Makton SA) and the Warsaw City Hall - On 25 September 2007 the Company received a notice of initiation of administrative proceedings in order to terminate without permission 4 pieces of trees growing in one of the property located in Warsaw. Explanatory statement filed to the case. In 04/2009, the Company has taken the last action in the case.

DUDA AGRO Ltd.

Enterprise Agri-Grains "Mieszko" Ltd. c / a Agro Duda sp. - Matter of reward (file: IX GC 1001/12/5, WPS: 4,281,961.00 PLN). On 16.10.2012. hearing took place on compromise. Agro Duda Ltd. refused to settle and completely denied the claim. Sequentially on 12.02.2013. served with a lawsuit in the case. Spolka Duda Agro Ltd. has submitted a response to the lawsuit, seeking to dismiss the action in its entirety as unfounded. Currently, the Company Agro Duda Ltd. looks forward to the hearing date. Agro Duda Spolka z o.o. is of the opinion and the possible risk of having to pay the claim be borne only by the other defendants (an entity affiliated with the Capital Group PKM DUDA SA), because the supplier of the service to store grain for the plaintiff in the period covered by the alleged claim arose lawsuit. Therefore, the Management Board maintains its not about creating reserves circumstance in question.

BIOENERGIA Ltd.

Bioenergy Ltd. c / a Governor of Wielkopolska - reference of decisions fixing the amount of compensation for taken over by the State Treasury land belonging to the Company for building the S5. On 22 February 2013 an appeal body Minister of Transport Construction and Maritime Economy (MTBiGM) overturned the decision of the first instance, and remanded the case for re-examination.

ROSAN AGRO Sp. z o.o.

Rosan Agro Sp. z o.o. c / a PP "FLORA - S" (Entry 36,525.94 грн) Branch Bailiffs for the quarter Municipal Board of Justice in Lviv

BUSINESS ACTIVITY:

Downloading the amount of UAH 35 930.63 - Basic indebtedness, 359.31 UAH stamp duty and 236 UAH - cost information and technical court proceedings.

CURRENT STATE OF AFFAIRS: Accomplished Enforcement pulled the debtor 8 764, 56 UAH. Enforcement proceedings are pending

Rosan Agro Sp. z o.o. c / a The State Tax Inspectorate for the area of Rohatyn circuit (entry 7 676 937 UAH), the Supreme Administrative Court of Ukraine.

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BUSINESS ACTIVITY: The consideration of the application of the State Tax Inspectorate appeal for the region Rohatyn circuit Ivano-Frankivsk Administrative Court for resolution in Case No. 2а-6028/08/0970 dated 03.09.2009 filed by "ROSAN-AGRO" Sp. z o.o. against PIP circuit Ivano-Frankivsk Rohatyn area and the Main Directorate of the Treasury for the circuit Ivano-Frankivsk for recognition as a void-tax decisions to notification No. 0000282301/0 16.05.2008 of the year; No. 0000102301/0 dated 22.02.2008, No. 0000592301 / 0 24.07.2008 of the year.

CURRENT STATE OF AFFAIRS: According to the resolution of the Administrative Court in Ivano-Frankivsk in Case No. 2а-6028/08/0970 on 03.09.2009 filed by "ROSAN-AGRO" Sp. z o.o. against PIP circuit Ivano-Frankivsk Rohatyn area to be recognized as invalid to notification-tax decision No. 0000282301/0 16.05.2008 of the year; No. 0000102301/0 dated 22.02.2008, No. 0000592301/0 24.07.2008 of the year - The claim was met in full; revoked the tax notice-decisions for the region Rohatyn PIP circuit iwanofrankiwskiego No. 0000282301/0 from 16.05.2008 ; No. 0000102301/0 of 22.02.2008, No. 0000592301/0 from 24.07.2008 year.

Appellate Administrative Court in Lviv on 21.02.2012 examined the case and passed 75074/09/9104 No.: complaint Govt Tax Inspectorate Appeals for the area Rohatyn Ivano-Frankivsk circuit is irrelevant, and the resolution of the Regional Administrative Court in Ivano-Frankivsk on 03.09.2009 year Case No. 2a-6028/08 - no change.

According to the resolution of the Supreme Administrative Court of Ukraine dated 13.04.2012 № KC/K/9991/19710/12 the cassation proceedings were initiated in response to a complaint of nullity of the State Tax Inspectorate for the area Rohatyn Ivano-Frankivsk circuit.

No period for consideration of the case by the Supreme Administrative Court of Ukraine.

Rosan Agro Sp. z o.o. c / a The State Tax Inspectorate for the area Rohatyn Ivano-Frankivsk circuit (post 1 827 631 UAH, including indebtedness basic 1 142 269 UAH + penalties 685 362 UAH), the Supreme Administrative Court of Ukraine.

BUSINESS ACTIVITY: The consideration of further appeal to the State Tax Inspectorate region Rohatyn Ivano-Frankivsk circuit on the resolution of the Regional Administrative Court in Ivano-Frankivsk on 03.02.2009, in Case No. 2a-6345/08/0970 and the resolution of the Appellate Administrative Court of Lviv 13.09 .2010 year, the No. 8270/09/9104 from the actions «ROSAN-AGRO" Sp. z o.o. against PIP circuit Ivano-Frankivsk Rohatyn area to be recognized as invalid a tax notice-of Decision No 0000972301/0 21.12.2006 of the year.

CURRENT STATE OF AFFAIRS: According to the resolution of the Administrative Court in Ivano-Frankivsk in Case No. 2а-6345/08/0970 on 03.09.2009 filed by the "ROSAN-AGRO" Sp. z o.o. against PIP circuit Ivano-Frankivsk Rohatyn area to be recognized as invalid a tax notice-of Decision No 0000972301/0 of 21.12.2006, the action was partly taken and considered null and void tax notice-decision No. 000 097 230/0, 21.12.2006, in part additional calculation of income tax in the amount of UAH 652 325 for the period from 01.07.2005 till 01.01.2006 and the imposition of appropriate penalties for w / in the period.

Administrative Court of Appeal in Lviv 13.09.2010 handled the matter was under no 8270/09/9104 and passed: Action Appeals of the State Tax Inspectorate for the area Rohatyn Ivano-Frankivsk circuit is irrelevant, and the resolution of the Regional Administrative Court in Ivano-Frankivsk on 03.02.2009 year Case No. 2а-6345/08 filed by «ROSAN-AGRO" Sp. z o.o. against PIP circuit Ivano-Frankivsk Rohatyn area to be recognized as invalid a tax notice-of Decision No 0000972301/0, 21.12.2006 - no change.

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According to the resolution of the Supreme Administrative Court of Ukraine dated 21.10.2010, No. К-31060/10 cassation proceedings were initiated in response to the complaint of the State Tax Inspectorate for the area of the circuit Rohatyn Ivano-Frankivsk the resolution of the Regional Administrative Court in Ivano-Frankivsk dated 03.02.2009, No. 2а-2549/08 and the resolution of the Administrative Court of Appeal in Lviv on 13.09.2010, in Case No. 8270/09/9104.

No period for consideration of the case by the Supreme Administrative Court of Ukraine.

The State Tax Inspectorate for the area of the circuit Rohatyn Ivano-Frankivsk c / a Rosan-Agro Ltd.. z o.o. (wps 1 554 128,40 UAH), the Regional Administrative Court for the circuit Ivano-Frankivsk ,

BUSINESS ACTIVITY: A tax liabilities you download the Enable taxpayer expense 1 554 128,40 UAH

CURRENT STATE OF AFFAIRS: The resolution of the Regional Administrative Court in Ivano-Frankivsk on 01.04.2009 proceedings has been delayed on the entry into force of the court decision 2a-6345/08/0970. Because of this, the decision of the Regional Administrative Court in Ivano-Frankivsk on the number of actions brought by the administrative 2а-6345/08/0970 "Rosan-Agro" Sp. z o.o. against PIP Rohatyn area closed for recognition as a tax notice - Decision No 0000972301/0 16.03.2009 of the year - came into force, the circumstances giving rise to the suspension of the proceedings ceased to exist, the court resumed the proceedings in the case.

(*** A resolution Regional Administrative Court in Ivano-Frankivsk on 18.03.2011, the proceedings in Case No. 2а-4852/08/0970 brought by PIP in the area rohatynskim against "ROSAN-AGRO" Sp. The recovery of the debt tax height of 1 554128.40 UAH cost the taxpayer the Enable suspended on the examination and solution by the Supreme Administrative Court of Ukraine No. 2а-6345/08/0970 case (No. к-31060.10) filed by «ROSAN-AGRO" Sp. region against PIP rohatynskim to recognize the invalid tax notice-decision).

1. Liabilities and Investment Solutions

On the day 31-03-2013 there were no significant capital commitments.

2. Related description of significant failures of DUDA SA Group in the first

quarter of 2013 with a list of the most important events.

Since the Polish entry into the European Union of the pig population in Poland is decreasing. According to data of the Central Statistical Office in 2004, it amounted to about 22 million units, and at the end of 2012, only about 11 million units. Trends in the last two are presented below the graph.

At the same time from the beginning of 2012 the volume of buying animals for slaughter persists at the same level.

However, the buying price of pork rose steadily from 2011 to the fourth quarter of 2012 reaching a peak in October 2012, since then on January 2013, the purchase price declined by 1.04 cents / kg to a level of 5.04 cents / kg (according to MARD) as of February this year.

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Grow again reaching in April. level of 5.33 cents / kg a few percent higher than that recorded in the same period in 2012, the change in purchase prices of pork chart below shows.

In response to unfavorable market conditions PKM DUDA SA Management Board has decided to change its strategy in the slaughter and-production segment. Instead of maximizing sales volume to focus on profitability and bought animals for policy change, which - in combination with the subsequent cost savings - helped to work out business models, which provide the company with a stable profit margin as presented in the above unfavorable market conditions, the stock of which is a low-growing pigs and livestock procurement prices.

Hence, despite the lower volume of slaughter in the first quarter of 2013 compared to the same period of 2012 the Company and the entire Group achieved better financial results.

PKM Duda Group results for the 3 months ended 31.03.2013 as compared to the same period in 2012

Specifications 3 months ended on

31-03-2013

3 months ended

on 31-03-2012

Dynamics

Net revenues from sales of goods and materials

461 176 509 099 -9.4%

Gain on sale 8 324 5 513 51.0%

Profit from operations 10 048 7 660 31.2%

Gross profit 5 997 1 635 266.8%

Profit for the period 5 945 -1 831 -424.7%

Depreciation 6 003 6 724 -10.7%

EBITDA 16 051 14 384 11.6%

Net profit margin 1.29% -0.36% 1.65 points. %

EBITDA 3.48% 2.83% 0.66 points. %

The debt ratio 55.29% 56.09% -0.8 Points. %

Indicator financing fixed capital 58.12% 62.64% -4.52 Points. %

Current ratio 0.97 1.13 -13.8%

Net working capital -8 278 33 552 -124.7%

Net debt 210 556 216 960 -3.0%

Net debt / EBITDA 13.12 15.08 -13.0%

Export revenues 62 745 58 941 106.5%

Share in total revenues 13.61% 11.58% 2.03 points. %

Group PKM Duda regained in the first quarter of 2013, profitability. Thanks to the focus on profitability in place to maximize sales volumes and bought animals for policy change reached 5.96 million net profit attributable to equity holders of the parent company undertaking as compared with PLN 1.8 million loss a year earlier, with consolidated revenues of PLN 461.2 million compared to 509.1 million in the previous year (down 9.4%). Receipts from exports amounted to 62.7 million, or 6.5% more than in the first quarter of 2012, which

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gave 13.6 per cent. share in total revenues (11.6 per cent. prior year). Consolidated EBIT amounted to 10 million and was higher by 31.2% than that obtained in the first quarter of 2012, when the Group generated PLN 7.7 million of operating profit. EBITDA for the first nine months of this year. amounted to 16 million PLN terms of 14.4 million the previous year (an increase of 11.6%).

Ratio analysis shows a slight improvement in the area of debt while reducing the debt interest. In the current market situation, the overriding aim of the company is to maintain stable funding and liquidity and activity and improve profitability.

Reduction of debt interest and activity caused the increase in profitability, with Debt / EBITDA ratio decreased significantly in the first quarter of 2013 compared to the same period in 2012. The Company intends to continue to improve profitability for the current year by keeping its debt at an acceptable level, and optimizing working capital. Continuation of these actions, in the judgment of the Board, will contribute to improving the efficiency of the Company and to strengthen its competitiveness in the market.

3. The shareholders have a direct are directly or are indirectly through

subsidiaries of at least 5% of the total number of persons at the general

meeting of the Company's DUDA SA to be in the quarterly report.

According to the knowledge possessed by the Board Polish Meat Concern DUDA SA shareholders holding large blocks of shares (above 5% of voting rights) as on 30 April 2013, as well as on the day of publication of the report (May 10, 2013 a year), are the following entities :

No. Shareholder Number of shares

Share capital (%)

Random number

The share of voting rights (%)

1 ING Bank Slaski SA 29 994 181 10.79 29 994 181 10.79

2 BZ WBK SA (*) 29 227 486 10.51 29 227 486 10.51

3 Bank Handlowy SA 20 369 538 7.33 20 369 538 7.33

4 ING OFE

ING Voluntary Pension Fund

(Management of ING PTE SA) - (**)

14 542 431 5.23 14 542 431 5.23

(*) - On 09 January 2013 PKM DUDA SA has received notification from the bank's headquarters in Wroclaw for increasing the share of the notifier (over 10%) of the total vote at the General Meeting of the Company.

Increasing the share was due the acquisition on 04th January 2013 the Company's shares held by Kredyt Bank SA, what happened from the merger of Kredyt Bank SA - general succession (Article 494 of the Code of Commercial Companies).

30

Prior to the increase, in the possession of the notifier, there were the total of 697,982 shares of the company, which accounted for 0.25% of the share capital. These shares 697,982 votes at the general meeting, representing a 0.25% share of the total vote at the General Meeting.

After increasing the share of the Notifier has a total of 29,227,486 shares of the Company, representing 10.51% of the share capital. These shares 29,227,486 votes at the General Meeting, which is a 10.51% share in the total number of votes at the General Meeting.

(**) - On 18 March 2013 PKM DUDA SA has received notice from ING PTE SA with its registered office in Warsaw, according to which the acquisition of shares of the Company in transactions on the Warsaw Stock Exchange, settled on 13 March 2013 , managed by the notifier funds: ING Open Pension Fund (the pension funds) and ING Voluntary Pension Fund (hereinafter: DFE) increased the number of shares held above 5% of the annual general meeting.

CAPITAL GROUP PKM DUDA SA

The condensed consolidated financial statements for the three months ended 31 March 2013

(In thousand PLN)

CAPITAL GROUP PKM DUDA SA

The condensed consolidated half-year report

for the six months ended 30 June 2011

(In thousand PLN)

Prior to the acquisition of shares and pension funds DFE 13,838,011 shares held the Company, representing 4.98% of its share capital, and were entitled to 13,838,011 votes at the general meeting of the Company, representing 4.98% of the total vote.

On 18 March 2013, the securities accounts of pension funds and DFE were 14,542,431 shares of the Company (5.23% of share capital), entitling to 14,542,431 votes at the General Meeting of the Company (5.23% of total votes) .

1. The shares of Polish meat concern DUDA SA or privileges to them by the

board and the issuer and supervise the quarterly report, total with changes in

ownership, from the previous quarterly report that distinct for each person

According to the knowledge possessed by the Board of the Polish Meat Concern DUDA SA on 30 April 2013, as well as on the day of publication of the report (May 10, 2013 a year) the ownership of securities by management and supervisory Polish Meat Concern DUDA SA was as follows:

31

No. Chairman/ supervisors / Shareholder Number of shares

Participation in share

capital (%)

Random number g

The share of voting rights (%)

1 Dariusz Formela Chairman of the Board 200 000 0.07% 200 000 0.07%

2 Roman Miller - Vice President of the Board 560 480 0.2% 560 480 0.2%

3 Rafał Oleszak- Vice-President of the Board 306 000 0.11% 306 000 0.11%

4 Maciej Duda Vice-President of the Board 460 000 0.16% 460 000 0.16%

2. Transactions with related and actual operation

The table below shows the total amount of material transactions with related parties during the three months ended March 31, 2013:

Name and Surname Function Gross amount of benefits

paid in thousands.

PLN contract of employment

Gross value of services "Use a company car for

private purposes in thousands. PLN

Dariusz Formela Chairman of the Board 150.00 2.40

Roman Miler Vice President of the Board 105.00 3.00

Rafał Oleszak Vice President of the Board 105.00 2.40

The table below shows the total amount of material transactions with related parties during the three months ended March 31, 2012:

Name and Surname Function Gross amount of benefits

paid in thousands.

PLN contract of employment

Gross value of services, use of

company cars for private purposes in

thousands. PLN

Dariusz Formela

Chairman of the Board

105.00 2.40

Roman Miler Vice President of the Board 105.00 3.00

Rafał Oleszak Vice President of the Board 105.00 2.40

The following table shows the material transactions with other related parties during the three

months ended March 31, 2013 and the comparative period

Transactions with related parties are conducted:

3. Events after the balance sheet, as follows:

32

On April 8, 2013, in the implementation of the provisions of the signed 18.03.2013 Annex 2 to the Agreement for Syndicated Loan Consolidation of 23.12.2009 and adopted by the parties to the contract arrangements for the establishment of additional security for the repayment by the Issuer of subsequent receivables lenders Company made a representation to establish a mortgage contract total to sixteen properties.

Details of the method to establish w / in mortgages and their scope has been presented in the Company's current report 11/2013 of 9 April 2013

INSIGNIA MANAGEMENT Sp. z o.o.

• On April 15, 2013, the Company acquired 96 participated total nominal value of 96 000 which the Company and Insignia Management Ltd., including 48 participated in the Investments Ltd. and 48 participated in the Finance SA both transactions close and totaling 100,032.00 and the amount, the Issuer constant only a dash of cooperation with Insignia Management Ltd. (the day the transaction Polish concern me that s DUDA SA holds a 64 stake of Insignia Management Ltd.)

• On May 6, 2013, the Ordinary General Meeting on Cooperation in the dash for Insignia Management Ltd. of resolutions taken, based on the angle of increase was offset printed with capital sample of the plant meadow with the amount of 160.000,00 to EUR 200,000.00 the amount of PLN 40,000.00, through the creation of 40 new share nominal value of 1,000.00 PLN each from each. Participation increases with elevated capital plant has been designed to provide the body covered by the existing sole co dash of that company Polish concern DUDA SA and May and covered cash contribution worth the nominal share subscribed in Increase of capital plan to be prepared.

The Management Board of the Polish Meat Concern DUDA SA

Signatures of all members:

May 10, 2013 Dariusz Formela Chairman of the Board

May 10, 2013 Roman Miler Vice President of the Board

May 10, 2013 Rafał Oleszak Vice President of the Board

The author:

May 10, 2013 Jerzy Jaśkowiak Chief Accountant

33

CONDENSED FINANCIAL STATEMENT OF THE PKM DUDA SA

FOR THE 3 MONTHS ENDED MARCH 31, 2013

Legal status on 10 May 2013

34

Selected financial data (separate report)

Financial Results in thousands.

of PLN

in thousand

EUR

2012 2011 2012 2011

Net sales of products, goods and materials 364 660

431 171

87 369

103 274

Profit (loss) from operating activities activity 6 094 11 171

1 460 2 676

Profit (loss) before tax 3 412 11 198

817 2 682

Profit (loss) 3 412 8 235 817 1 972

Net cash flow from operating activities 12 705 7 386 3 044 1 769

Net cash flow from investing activities -704 1 859 -169 445

Net cash flow from financing activities -8 701 -8 762 -2 085

-2 099

Cash flow net total 3 301 483 791 116

Total assets 520 638

584 353

124 632

140 415

Liabilities and provisions for liabilities 292 055

332 570

69 913

79 914

Long-term Liabilities 77 091 121 510

18 454

29 198

Contingent short-term 199 442

191 530

47 743

46 023

Capital 228 583

251 783

54 719

60 501

Registered Capital 278 002

278 002

66 549

66 802

Number of shares (units) 278 002 290

278 002 290

278 002 290

278 002 290

Earnings (loss) per a share (in PLN / EUR) 0.01 0.03 0.00 0.01

Diluted earnings (loss) per a share (in PLN / EUR) 0.01 0.03 0.00 0.01

Assets per share (in PLN / EUR) 0.82 0.91 0.20 0.22

Diluted book assets per share (in PLN / EUR) 0.82 0.91 0.20 0.22

Declared or safeguarding lacona dividend per share (in PLN / EUR) 0.00 0.00 0.00 0.00

For the conversion of the balance sheet in the form imputing the average NBP exchange rate on the last working day of each period:

- 4.1774 PLN / EUR of 31 March 2013

- 4.1616 PLN / EUR of 31 March 2012

For the conversion of the individual items in the profit and loss and cash flows used for equivalent currency exchange:

- 4.1738 PLN / EUR for the period from 1 January to 31 March 2013

35

- 4.1750 PLN / EUR for the period from 1 January to 31 March 2012

Condensed quarterly profit or loss (Separate report)

for the 3 months ended 31 March 2013

for the period

01.01.2013 - 31.03.2013

for the period

01.01.2012 -

31.03.2012

A. Net sales of products, goods and materials, including: 364 660 431 171

- From subordinated referential 5 696 1 159

I. Net sales of products 193 522 234 621

II. Net revenues from sales of goods and materials 171 138 196 550

B. Cost of products, goods and materials, including: 325 195 399 856

- Individuals 5 383

I. Cost of sales of the product 176 647 226 364

II. Value of goods and materials 148 548 173 492

C. Gain (loss) on sale of 39 465 31 315

D. Cost of sales 26 057 21 401

E. Costs of the board 8 892 10 544

F. Profit (loss) on sale 4 515 -630

G. Other operating income 2 468 12 323

I. Profit on disposal of fixed assets 79 40

II. Grants 484 759

III. Other operating income 1 906 11 524

H. OTHER OPERATING COSTS 890 522

I. Loss on disposal of fixed assets of active

II. Revaluation of non-financial assets 394

III. Other operating expenses 496 522

I. Net profit (loss) from operating activities 6 094 11 171

J. Financial income 797 4 006

I. Dividends and share in the profits, including: 3 279

- From subordinated referential 3 277

II. Interest, including: 200 239

- From subordinated referential 174 147

III. Gain on sale of investments

IV. Revaluation of investment

V. Other 597 488

K. Financial costs 3 479 3 979

I. Interest, including: 2 351 2 885

- To subordinated referential 2

II. Loss on sale of investments

III. Revaluation of investment sci 127 115

IV. Other 1 002 979

L. Profit (loss) on economic activity 3 412 11 198

M. The result of extraordinary events

I. Extraordinary gains

II. Extraordinary losses

36

N. Profit (loss) before tax 3 412 11 198

A. Income tax 2 963

- Your current PART 3 022

- PART deferred -59

P. Other mandatory decrease of profit (loss)

R. Share profits (losses) of subsidiaries under the equity method

S. Profit (loss) 3 412 8 235

CONDENSED BALANCE SHEET (separate report)

as on 31 March 2013

ASSETS (in thousand PLN) as on 31-03-2013

as on 31-12-2012

as on 31-03-2012

A. Fixed assets 334 965 337 418 361 965

I. Intangible 5 677 5 892 6 237

1 Costs of completed development

2 S.C.

3 Other values, intangible 5 658 5 891 4 812

4.The value of intangibles 19 1 1 425

II. Tangible fixed assets 140 420 143 108 154 298

First fixed assets 132 813 136 034 141 985

a) land (including perpetual usufruct) 13 270 13 269 14 091

b) buildings, premises and land and water 96 346 97 248 96 347

c) Equipment and machinery exhausts 17 096 18 446 20 176

d) means of transport 5 098 5 957 10 066

e) other fixed assets 1 003 1 114 1 305

2 Assets under construction 7 607 7 074 12 138

3 Advances for fixed assets under construction 175

III. Long-term dependencies

1 From subordinated referential

2 From other entities

IV. Investing long term 165 553 165 102 167 390

1 Real estate 18 731 18 859 16 507

2 Intangible assets

3 Long term financial assets 146 822 146 243 150 883

a) Subordinated referential: 146 781 146 202 150 842

- Share or shares 145 701 145 126 150 842

- Other marketable securities

- Granted ticularly 1 080 1 076

- Other long term financial assets

b) in other entities 41 41 41

- share or shares 41 41 41

- Other marketable securities

- Granted ticularly

- Other long term financial assets

4 Other long term investments

VD lugoterminowe accruals 23 315 23 316 34 040

37

1 Assets arising deferred income tax 23 311 23 311 33 960

2 Other prepayments 4 5 80

B. Current assets 185 673 169 446 222 388

I. Inventories 33 464 23 829 36 881

1 Matter 4 401 3 718 5 018

2 work in progress 275 291 335

3 Finished products 17 558 10 317 18 648

4 Goods 10 934 9 503 12 880

5 Advances Supply 296

II. Must dependencies short-term 134 397 134 661 165 369

1 Must dependencies between related parties 5 090 4 614 7 381

a) the title of loose supplies and services, the period of repayment:

1 833 1 200 381

- Up to 12 months 1 833 1 200 381

- More than 12 months

b) other 3 257 3 414 7 000

2.dependencies from other companies 129 307 130 047 157 988

a) the title of loose supplies and services, the period of repayment:

112 948 115 685 144 381

- Up to 12 months 112 948 115 685 144 381

- More than 12 months

b) the title taxes, subsidies, tariffs, social security, health insurance and other benefits

13 579 11 626 10 433

c) other 2 780 2 736 3 174

d) enforced by s-sequence

III. Investments 13 005 9 717 15 265

1 financial assets 13 005 9 717 15 265

a) in subordinated referential 1 859 1 856 3 961

- share or shares

- Other marketable securities

- Granted ticularly 1 859 1 856 3 961

- Other financial assets kr otkotermionwe

b) in other entities 204 226 217

- share or shares

- Other marketable securities

- Granted ticularly 204 226

- Other financial assets short term

c) cash and cash equivalents 10 942 7 635 11 087

- Cash on hand and at bank 9 126 6 767 8 906

- Other cash 1 816 868 2 181

- Other cash assets

2 Other investments short term

IV. accruals 4 807 1 239 4 873

Total assets 520 638 506 864 584 353

38

Principles (policies) and explanatory notes to the consolidated financial statements presented on pages 14 to 35 form an integral part

PKM DUDA SA

Condensed financial statements for the three months ended 31 March 2013

(In thousand PLN)

LIABILITIES (in PLN thousand) as on 31-03-2013

as on 31-12-2012

as on 31-03-2012

A Capital L (FUND) 228 583 225 171 251 783

I. Capital l (fund) 278 002 278 002 278 002

II. It should installa-up share capital (negative value)

III. Share (diluted) (negative value)

IV.Capital (fund) 73 375 73 375 79 021

V. Capital (fund) from revaluation

VI. Other capitals (funds) 61 61 61

In connection VII.Kapita -95 957 -95 957 -95 957

VIII. Profit (loss) from previous -30 310 -11 933 -17 579

IX. Profit (loss) 3 412 -18 377 8 235

X. Deductions from net income in the year (negative value)

B. Liabilities and provisions for liabilities 292 055 281 693 332 570

Commitment I.Reserves 3 482 3 315 6 296

1.Reserves arising from deferred income tax 221 221 249

2 Provision for retirement benefits and similar 2 367 1 944 4 695

- Long term 341 323 280

- Short term 2 026 1 621 4 415

3 Other forest reserves 894 1 150 1 352

- Long term

- Short term 894 1 150 1 352

II. Long-term Liabilities 77 091 82 645 121 510

1 Therefore subordinated referential

2 In view of the remaining units 77 091 82 645 121 510

a) loans 75 136 80 553 117 346

b) the title of issuance of debt securities

c) other financial liabilities 1 955 2 092 4 164

d) other

Third Contingent short-term 199 442 184 915 191 530

1 Therefore subordinated referential 17 641 18 974 29 693

a) the title of loose supplies and services, with a maturity of:

17 541 18 874 24 593

- Up to 12 months 17 541 18 874 24 593

- More than 12 months

b) other 100 100 5 100

39

2 In view of the remaining units 180 983 165 123 161 022

a) loans 61 724 62 120 30 511

b) the title lu issuance of debt securities

c) the obligations of the lease 2 037 2 305 2 506

d) the title of loose supplies and services, with a maturity of:

95 765 79 056 117 328

- Up to 12 months 95 765 79 056 117 328

- More than 12 months

e) advances received 250

f) due Bills

g) other financial liabilities 12 950 13 341

h) of title lu taxes, duties, and other benefits 5 123 4 605 6 924

i) the title salaries 2 986 3 260 3 570

j) other 398 186 183

Special 3.Funds 818 818 815

IV. Accruals 12 040 10 818 13 234

1 The negative value

2 Other prepayments 12 040 10 818 13 234

- Long term 4 347 5 350 6 373

- Short term 7 693 5 468 6 861

Liabilities total 520 638 506 864 584 353

QUARTERLY CONDENSED CASH FLOW STATEMENT (separate report)

for the 3 months ended 31 March 2013

For the period

from 01-01-2013 to 31-032013

For the period

from 01-01-2013 to 31-03-2012

(Using the average)

A. Flow cash from operating activities

I. Net profit (loss) 3 412 8 235

II. Adjustments 9 294 -849

1 share profits (losses) of subsidiaries under the equity method

2 Depreciation 3 816 4 464

3 (Gains) losses from exchange rate differences lu -84 67

4 Ly Interest and participation in profits (dividends) 2 294 -486

5 (Gain) loss of business investment activities -198 -173

6 Change in provisions 166 412

7 Change in supply -9 635 -8 389

8 Change in dependencies 4 137 -14 709

9 Change in liabilities azan in short-term loans and borrowings 11 098 32 014

10th Change in prepayments and accruals -2 346 -3 025

11th Other adjustments 45 -11 025

40

III. Net cash flow from operating activities (I + /-II) - indirect method

12 705 7 386

B. Flow cash from investing activities

I. Influence 431 4 501

1 Disposal of intangible and tangible fixed assets 24 159

2 Disposal of investments in real estate and sci intangible assets 372 250

3 The head of financial activity, including: 36 4 092

a) in subordinated referential 36 3 934

- Sale of financial activity o

- Dividends and participation in profits ly 3 277

- Year term loans 165

- Interest 36 492

- Other impact of financial assets

b) in other entities 158

- Sale of financial activity o

- Dividends and participation in profits

- Year term loans 105

- Interest 53

- Other impact of financial assets

4 Other investment

II. Expenses 1 135 2 642

1 Purchase of intangible and tangible fixed assets 1 111 1 514

2 Investments and intangible assets

3 For financial assets, including: 24 1 128

a) in subordinated referential 24 1 128

- Acquisition of financial activity 20 55

- Granted ticularly long-term

- Granted ticularly short-term 4 1 073

b) in other entities

- Acquisition of financial activity

- Granted ticularly long-term

4 Other investment expenses

III. Net cash flow from investing activities (I-II) -704 1 859

C. Flow cash from financing activities

I. Influence 4 289 3 137

1 Wp Net issue of shares (stakes) and other equity instruments and contributions to capital

2 Loans 4 289 3 137

including from subordinated referential

3 Issuance of securities d loose

4 Other financial impact

II. Expenses 12 990 11 899

1 Acquisition of shares (share low) own

2 Dividends and other safeguarding to owners

3 Other than the payments to shareholders, expenses related to profit

41

distribution

4 credit and loans 10 699 8 355

5 Redemption of securities

6 The title of other financial liabilities

7 The Payment of liabilities arising from finance leases 572 669

8 Interest 1 719 2 875

9 Other financial expenses (share in lasne)

III. Net cash flow from financing activities (I-II) -8 701 -8 762

D. Flow Net cash (A.III + /-B.III + /-CIII) 3 301 483

E. Balance sheet change in cash and cash equivalents, including:

3 308 416

- Change in cash and cash equivalents due exchange differences 7 -67

F. Cash at beginning of period 7 637 10 602

G. Cash at end of period (F + / - D), including: 10 938 11 085

- With reduced disposal

Condensed statement of changes in equity (separate report)

for the 3 months ended 31 March 2013

31-03-2013

31-03-2012

I. Capital l 'equity at beginning of period (BO) 225 171 243 548

a) changes in alternative farm accepted accounting principles (policy)

b) adjustments of the basic LED

Capital ia l 'equity at the beginning of the period (BO), after restatements

225 171 243 548

1 L Registered capital at beginning of period 278 002 278 002

1.1 Changes in share capital lu

a) the related gain extra (due)

- Issue of shares (share low)

b) decrease (due)

- Redemption of shares (share low)

1.2 Registered Capital at end of period 278 002 278 002

2 It should installa-up share capital at beginning of period

2.1 Changes due ports to particular contributions to share capital

a) the related gain extra (due)

-

b) decrease (due)

2.2 It should installa-up share capital at end of period

3 Shares (share ) at the beginning of the period

3.1 Changes in treasury shares (share low) own

a) the related gain extra (due)

- The cost of redemption

b) decrease (due)

- Purchase of own shares

3.2 shares (shar) at the end of the period

4 L Capital reserve at beginning of period 73 375 74 110

42

4.1 Changes in supplementary capital 4 911

a) the related gain extra (due) 4 911

- Presentation of the cost of emissions in the short-term head of periodic settlements

- Costly issue in finance costs

- The division of the profits (statutory)

- The division of the profits (above the statutory minimum) 4 911

- Issue of shares above par value sc (share premium)

b) decrease (due)

- Loss

- Issuance costs

- Separate capital on redemption of own shares

4.2 l Capital reserve at end of period 73 375 79 021

5 L Capital revaluation at beginning of period

5.1 Changes in capital lu revaluation

a) the related gain extra (due)

- Release of valuation of financial instruments

b) decrease (due)

- Release of tax assets on account. valuation of financial instruments

- Provision for deferred tax on account. contribution

5.2 l Capital revaluation at the end of the period

6 OTHER RESERVES at beginning of period 61 61

6.1 Changes in other reserves

a) the related gain extra (due)

- Separate capital L on redemption of own shares

b) decrease (due)

- Cancellation of own shares

Le 6.2 Other capital reserves at end of period 61 61

7 L Capital Connections at beginning of period -95 957 -95 957

7.1 Changes in share capital of connections

a) the related gain extra (due)

b) decrease (due)

- The merged companies subsidiaries

7.2 Capital l connections at end of period -95 957 -95 957

8 Profit (loss) from previous at beginning of period -30 310 -12 668

8.1 Profit from previous at the beginning of the period 15 654 15 654

- Changes accepted alternative farm policy (policy)

- Adjustments basic

8.2 Profit from previous at the beginning of the period, after restatements

15 654 15 654

a) the related gain extra (due)

- L dividing profit from previous

b) decrease (due) 4 911

- The profit to capital reserve 4 911

- Loss coverage

8.3 Profit from previous at end of period 15 654 10 743

8.4 Loss from previous at the beginning of the period 45 964 28 322

- Changes accepted alternative farm policy (policy)

- Adjustments basic

43

8.5 Loss from previous at the beginning of the period, after restatements

45 964 28 322

a) the related gain extra (due)

- Transfer of losses from previous to cover the

- Other increases

b) decrease (due)

- Loss coverage

- Others

8.6 Loss from previous at the end of the 45 964 28 322

8.7 Profit (loss) from previous at end of period -30 310 -17 579

9 The net result 3 412 8 235

a) net profit 3 412 8 235

b) net loss

c) deductions from profit

II. Shareholders 'l' equity at end of period (BZ) 228 583 251 783

III. Capital , the proposed distribution of profit (loss coverage)

Notes

A) Applicable rules for valuing assets and liabilities

Designation used in the preparation of the financial statements of methods of valuation of assets and liabilities:

1 Intangible assets - intangible assets acquired in company applies a software, which are amortized on a straight-line rate of 20% per annum. Valuation of assets is carried at cost plus notary fees and tax on civil law transactions related to the acquisition, less accumulated depreciation and any allowance for impairment losses.

2 Goodwill represents the difference between the purchase price of a given company and cheaper than the fair value of net assets acquired. Due the long period of reaping the economic benefits of the newly acquired economic entities, the Company records depreciation and amortization of goodwill over 20 .

3 Tangible fixed assets - is fixed assets, fixed assets under construction and advances for fixed assets under construction. Tangible fixed assets are valued in the balance sheet at cost plus the notary fees and tax on civil law transactions, aggravating purchase tax, in so far as it is not subject to a deductible, commissions and interest as well as negative and positive foreign exchange differences on borrowings, liabilities and prepaid in the run-dedication of property, plant and equipment to use, less accumulated impairment losses. Fixed assets are further reduced by accumulated depreciation.

44

Objects with an initial value lower than 1.0 thousand. PLN is written down in a month, the cost of materials being commissioned. These items are included in the balance sheet records.

Fixed assets with an initial value equal to or above 1.0 thousand. PLN and at the same time equal to or less than 3.5 thousand. PLN is credited to fixed assets and amortized once a month, putting them to use.

Fixed assets worth more than 3.5 thousand. PLN are depreciated (amortized) straight-line method, starting from the month following the month in which it was adopted for usage.

The annual depreciation rates used by the Company for the different classes of assets, are as follows:

Group by type Rates

• buildings and structures from 2.5% to 10%

• machines and devices and technical devices from 4.5% to 30%

• means of transport from 14% to 40%

• other measures from 10% to 20%

• the right of perpetual usufruct of land amortized within 99

For two buildings entity uses elevated rates of depreciation on account of 1,2 pointer operation in degraded mode.

4 Long-term receivables "are claims, except for financial assets belonging to and arising out of supplies and services, the maturity of which fall within a period longer than one year from the balance sheet date, the division into receivables from related parties, and the others. Long-term receivables are measured at the amount due, total with accrued interest, net of write-downs on these receivables.

5 Long-term investments "long-term investments include investments in real estate and law, and financial assets. Investments in real estate are carried at cost less accumulated depreciation and impairment impairment. Financial assets are measured at cost less accumulated impairment losses. Shares listed on the Stock Exchange are measured at the rate of exchange at the balance sheet date. Loans granted are recognized on the balance sheet at the amount payable, and so outstanding principal plus accrued, had already been taken and the payable interest. This interest can enhance financial income.

Notes to the condensed financial statements on pages 47 to 54 form an integral part

/ 8

45

PKM DUDA SA

Condensed financial statements for the three months ended 31 March 2013

(In thousand PLN)

LIABILITIES (in PLN thousand) as on 31-03-2013

as on 31-12-2012

as on 31-03-2012

A Capital L (FUND) 228 583 225 171 251 783

I. Capital (fund) 278 002 278 002 278 002

II. It should installa-up share capital (negative value)

III. share (diluted) (negative value)

IV.Capital (fund) 73 375 73 375 79 021

V. Capital l (fund) from revaluation

VI. Other capitals (funds) 61 61 61

Ly in connection VII. -95 957 -95 957 -95 957

VIII. Profit (loss) from previous -30 310 -11 933 -17 579

IX. Profit (loss) 3 412 -18 377 8 235

X. Deductions from net income in the year (negative value)

B. Liabilities and provisions for liabilities 292 055 281 693 332 570

Commitment I. 3 482 3 315 6 296

1.Reserves arising deferred income tax 221 221 249

2 Provision for retirement benefits and similar 2 367 1 944 4 695

- Long term 341 323 280

- Short term 2 026 1 621 4 415

3 Other forest reserves 894 1 150 1 352

- Long term

- Short term 894 1 150 1 352

II. Long-term Liabilities 77 091 82 645 121 510

1 Therefore subordinated referential

2 In view of the remaining units 77 091 82 645 121 510

a) loans 75 136 80 553 117 346

b) issuance of debt securities

c) other financial liabilities 1 955 2 092 4 164

d) other

Third Contingent short-term 199 442 184 915 191 530

1 Therefore subordinated referential 17 641 18 974 29 693

a) the title of loose supplies and services, with a maturity of:

17 541 18 874 24 593

- Up to 12 months 17 541 18 874 24 593

- More than 12 months

b) other 100 100 5 100

2 In view of the remaining units 180 983 165 123 161 022

a) loans 61 724 62 120 30 511

b) the title issuance of debt securities

c) the obligations of the lease 2 037 2 305 2 506

46

d) the title of loose supplies and services, with a maturity of:

95 765 79 056 117 328

- Up to 12 months 95 765 79 056 117 328

- More than 12 months

e) advances received 250

f) Bills

g) other financial liabilities 12 950 13 341

h) taxes, duties, and other insurance benefits 5 123 4 605 6 924

i) salaries 2 986 3 260 3 570

j) other 398 186 183

Special 3.Funds 818 818 815

IV. Accruals 12 040 10 818 13 234

1 The negative value

2 Other prepayments 12 040 10 818 13 234

- Long term 4 347 5 350 6 373

-Short term 7 693 5 468 6 861

Liabilities, total 520 638 506 864 584 353

QUARTERLY CONDENSED CASH FLOW STATEMENT (separate report)

for the 3 months ended 31 March 2013

For the period

from 01-01-2013 to 31-032013

For the period

from 01-01-2013 to 31-03-2012

(Using the average)

A. Flow cash from operating activities

I. Net profit (loss) 3 412 8 235

II. Adjustments 9 294 -849

1 share profits (losses) of subsidiaries under the equity method

2 Depreciation 3 816 4 464

3 (Gains) losses from exchange rate differences lu -84 67

4 Interest and participation in profits (dividends) 2 294 -486

5 (Gain) loss of business investment activities -198 -173

6 Change in provisions 166 412

7 Change in supply -9 635 -8 389

8 Change in dependencies 4 137 -14 709

9 Change in liabilities in short-term loans and borrowings 11 098 32 014

10th Change in prepayments and accruals -2 346 -3 025

11th Other adjustments 45 -11 025

III. Net cash flow from operating activities (I + /-II) - indirect method

12 705 7 386

B. Flow cash from investing activities

I. Influence 431 4 501

47

1 Disposal of intangible and tangible fixed assets 24 159

2 Disposal of investments in real estate and intangible assets 372 250

3 The head of financial activity, including: 36 4 092

a) in subordinated referential 36 3 934

- Sale of financial activity

- Dividends and participation in profits 3 277

- year term loans 165

- Interest 36 492

- Other impact of financial assets

b) in other entities 158

- Sale of financial activity

- Dividends and participation in profits

- Sp year term loans 105

- Interest 53

- Other impact of financial assets

4 Other investment

II. Expenses 1 135 2 642

1 Purchase of intangible and tangible fixed assets 1 111 1 514

2 Investments in real and intangible assets

3 For financial assets, including: 24 1 128

a) in subordinated referential 24 1 128

- Acquisition of financial activity 20 55

- Granted ticularly long-term

- Granted ticularly short-term 4 1 073

b) in other entities

- Acquisition of financial activity

- Granted ticularly long-term

4 Other investment expenses

III. Net cash flow from investing activities (I-II) -704 1 859

C. Flow cash from financing activities

I. Influence 4 289 3 137

1 Wp Net issue of shares (stakes) and other equity instruments and contributions to capital

2 Loans 4 289 3 137

including from subordinated referential

3 Issuance of securities d loose

4 Other financial impact

II. Expenses 12 990 11 899

1 Acquisition of shares (share low) own

2 Dividends and other safeguarding to owners

3 Other than the payments to shareholders, expenses related to profit distribution

4 credit and loans 10 699 8 355

5 Redemption of securities

6 The title other financial liabilities

7 The Payment of liabilities arising from finance leases 572 669

48

8 Interest 1 719 2 875

9 Other financial expenses (share in lasne)

III. Net cash flow from financing activities (I-II) -8 701 -8 762

D. Flow Net cash (A.III + /-B.III + /-CIII) 3 301 483

E. Balance sheet change in cash and cash equivalents, including:

3 308 416

- Change in cash and cash equivalents due exchange differences 7 -67

F. Cash at beginning of period 7 637 10 602

G. Cash at end of period (F + / - D), including: 10 938 11 085

- With reduced disposal

condensed statement of changes in equity (separate report)

for the 3 months ended 31 March 2013

31-03-2013

31-03-2012

I. Capital equity at beginning of period (BO) 225 171 243 548

a) changes in alternative farm accepted accounting principles (policy)

b) adjustments of the basic LED

Capital equity at the beginning of the period (BO), after restatements 225 171 243 548

1 L Registered capital at beginning of period 278 002 278 002

1.1 Changes in share capital

a) the related gain extra (due)

- Issue of shares (share low)

b) decrease (due)

- Redemption of shares (share low)

1.2 Registered Capital l at end of period 278 002 278 002

2 It should installa-up share capital at beginning of period

2.1 Changes due ports to particular contributions to share capital

a) the related gain extra (due)

-

b) decrease (due)

2.2 It should installa-up share capital at end of period

3 Shares (share ly) at the beginning of the period

3.1 Changes in treasury shares (share low) own

a) the related gain extra (due)

- The cost of redemption

b) decrease (due)

- Purchase of own shares

3.2 shares (share ly) at the end of the period

4 L Capital reserve at beginning of period 73 375 74 110

4.1 Changes in supplementary capital 4 911

a) the related gain extra (due) 4 911

- Presentation of the cost of emissions in the short-term head of periodic settlements

- Przeksi egowanie costly issue in finance costs

- The division of the profits (statutory)

- The division of the profits (above the statutory minimum) 4 911

- Issue of shares above par value sc (share premium)

49

b) decrease (due)

- Loss

- Issuance costs

- Separate capital on redemption of own shares

4.2 l Capital reserve at end of period 73 375 79 021

5 L Capital revaluation at beginning of period

5.1 Changes in capital lu revaluation

a) the related gain extra (due)

- Release of valuation of financial instruments

b) decrease (due)

- Release of tax assets on account. valuation of financial instruments

- Provision for deferred tax on account. contribution

5.2 l Capital revaluation at the end of the period

6 OTHER RESERVES at beginning of period 61 61

6.1 Changes in other reserves

a) the related gain extra (due)

- Separate capital L on redemption of own shares

b) decrease (due)

- Cancellation of own shares

6.2 Other capital reserves at end of period 61 61

7 L Capital Connections at beginning of period -95 957 -95 957

7.1 Changes in share capital of loose connections

a) the related gain extra (due)

b) decrease (due)

- The merged companies subsidiaries

7.2 Capital l connections at end of period -95 957 -95 957

8 Profit (loss) from previous at beginning of period -30 310 -12 668

8.1 Profit from previous at the beginning of the period 15 654 15 654

- Changes accepted alternative farm policy (policy)

- Adjustments b LEDs basic

8.2 Profit from previous at the beginning of the period, after restatements

15 654 15 654

a) the related gain extra (due)

- dividing profit from previous

b) decrease (due) 4 911

- The profit to capital reserve 4 911

- Loss coverage

8.3 Profit from previous at end of period 15 654 10 743

8.4 Loss from previous at the beginning of the period 45 964 28 322

- Changes accepted alternative farm policy (policy)

- Adjustments LEDs basic

8.5 Loss from previous at the beginning of the period, after restatements

45 964 28 322

a) the related gain extra (due)

- Transfer of losses from previous to cover the

- Other increases

b) decrease (due)

- Loss coverage

- Others

50

8.6 Loss from previous at the end 45 964 28 322

8.7 Profit (loss) from previous at end of period -30 310 -17 579

9 The net result 3 412 8 235

a) net profit 3 412 8 235

b) net loss

c) deductions from profit

II. Shareholders 'l' equity at end of period (BZ) 228 583 251 783

III. Capital , the proposed distribution of profit (loss coverage)

51

PKM DUDA Individual results for the three months ended March 31, 2013 for the year compared with the same period of 2012.

Specifications 3 months ended on

31-03-2013

3 months ended

on 31-03-2012

Dynamics

Net revenues from sales of goods and materials

364 660 431 171 -15.4%

Gain on sale 4 515 -630 -816.7%

Profit from operations 6 094 11 171 -45.5%

Gross profit 3 412 11 198 -69.5%

Profit for the period 3 412 8 235 -58.6%

Depreciation 3 816 4 464 -14.5%

EBITDA 9 910 15 635 -36.6%

Net profit margin 0.94% 1.91% -0.97 Points.

%

EBITDA 2.72% 3.63% -0.91 Points. %

The debt ratio 56.10% 56.91% -0.82 Points. %

Indicator financing fixed capital 58.71% 63.88% -5.17 Points. %

Current ratio 0.93 1.16 -19.8%

Net debt 142 860 143 440 -0.4%

Net debt / EBITDA 14.42 9.17 57.1%

Export revenues 62 745 58 941 106.5%

Share in total revenues 17.21% 13.67% 3.54 points. %

Spolka PKM DUDA within 3 months 2013 earned revenues from a height of 2 104 145 thousand. PLN, which in comparison with the previous year, an increase of 26%. Nominal export revenue increased by over 33% and their share in the structure of total income is higher by almost 1% compared to last year and represents 14.3% of total revenues

Generated by the group in 2012, EBITDA amounted to PLN 37.3 million and a 44% EBITDA for the same period of the previous year

The net result, the group acquired a negative result in the amount of 19.7 million.

4. Description of event of significant impact on the company’s financial results:

Events of the above - in the reporting period did not take place

5. Seasonally of business activities

The domestic consumption of meat and meat products is a noticeable increase in turnover during the periods preceding Christmas and Easter.

52

6. Financial Instruments

During the reporting period, there were no significant changes in the use of financial instruments.

7. Dividends payed and proposed to be payed

Company has not yet paid any dividends.

8. The events following that and following which the balance sheet date

Establishment of a mortgage

On April 8, 2013, in the implementation of the provisions of the signed 18.03.2013 Annex 2 to the Agreement for Syndicated Loan Consolidation of 23.12.2009 and adopted by the parties to the contract arrangements for the establishment of additional security for the repayment by the Issuer of subsequent receivables lenders Company made a representation to establish a mortgage contract total to sixteen properties.

Details of the method to establish w / in mortgages and their scope has been presented in the Company's current report 11/2013 of 9 April 2013

TIGRA TRANS Limited Company Limited Partnership

On 25 April 2013 a resolution was passed the company called Tigre TRANS Limited Company the Sp. k, according to which the contribution has been increased for this company to be paid by the sole limited partner - Polish PKM DUDA SA. The value of the Issuer's contribution was increased from EUR 1,037,000.00 to EUR 6,126,100.00 PLN PLN, ie by PLN 5,089,100.00 PLN. Increasing the value the contribution limited partner of the reporting date not been registered in the register of the National Court Register.

INSIGNIA MANAGEMENT Ltd.

On 15 April 2013, the Company acquired a total 96 shares with a total nominal value of PLN 96,000 in the company under the company Insignia Management Ltd., including 48 stakes from E-Investments Ltd. and 48 stakes from Financo SA. The value of both transactions closed over the total amount of PLN 100,032.00. Thus, the Issuer became the sole shareholder of Insignia Management Ltd. (the day of the transaction Polish PKM DUDA SA owned 64 shares in Insignia Management Ltd.)

On May 6, 2013, the Ordinary General Meeting of Shareholders Insignia Management Ltd. passed a resolution under which the share capital was increased by the amount of the company to the amount of PLN 160,000.00 PLN 200,000.00, that is, by the amount PLN 40,000.00 through the creation of 40 new shares of nominal value PLN 1,000.00 each. Shares in the increased share capital were intended on be covered by the existing sole shareholder of the company - PKM DUDA SA and have to be paid for in cash at par value of the shares. Increase the share capital on the date of report not been registered in the National Court Register.

9. Liabilities and solutions and Contingent Assets

53

Significant Litigation and Enforcemen - PKM DUDA SA in the first quarter of 2013.

A detailed list of court proceedings in which a party are the companies of the Group have been described in the annual consolidated financial statements for the year 2012. In the current period, substantial changes in the pending proceedings have been described in the paragraph. 19 of the consolidated financial statements.

The Board of the Polish Meat Concern DUDA SA:

Signatures of all members of the Board:

May 10, 2013 Dariusz Formela President of the Board .................................

May 10, 2013 Roman Miler Vice President of the Board .................................

May 10, 2013 Rafał Oleszak Vice President of the Board .................................

The author of the report:

May 10, 2013 Jerzy Jaśkowiak Chief Accountant .................................