ORLEN ORLEN Group 2017
Integrated Report

Consolidated Financial Statements

GRI INDICATORS:
Capitals:

1.  Consolidated statement of profit or loss and other comprehensive income

  NOTE 2017 2016 change (y/y)
        value %
Sales revenues

8.2
9.1.1
9.1.2

95,364 79,553 15,811 19.9

revenues from sales of finished goods and services

  72,915 57,775 15,140 26.2

revenues from sales of merchandise and raw materials

  22,449 21,778 671 3.1
Cost of sales 9.1.3 (81,766) (68,223) (13,543) (19.9)

cost of finished goods and services sold

  (61,266) (47,976) (13,290) (27.7)

cost of merchandise and raw materials sold

  (20,500) (20,247) (253) (1.3)
Gross profit on sales   13,598 11,330 2,268 20.0
Distribution expenses   (4,327) (4,125) (202) (4.9)
Administrative expenses   (1,537) (1,426) (111) (7,8)
Other operating income 9.1.4 1,243 2,163 (920) (42.5)
Other operating expenses 9.1.5 (568) (707) 139 19.7
Share in profit from investments accounted for under equity method 9.2.4 248 297 (49) (16.5)
Profit from operations   8,657 7,532 1,125 14.9
Finance income 9.1.6.1 1,760 248 1,512 609.7
Finance costs 9.1.6.2 (1,700) (893) (807) (90.4)
Net finance income and costs   60 (645) 705 -
Profit before tax   8,717 6,887 1,830 26.6
Tax expense 9.1.7 (1,544) (1,147) (397) (34.6)

current tax

  (1,329) (751) (578) (77.0)

deferred tax

  (215) (396) 181 45.7
Net profit   7,173 5,740 1,433 25.0
Other comprehensive income:          
which will not be reclassified subsequently into profit or loss   (13) (4) (9) 225.0

fair value measurement of investment property as at the date of reclassification

  - 6 (6) -

actuarial gains and losses

  (15) (10) (5) 50.0

deferred tax

  2 - 2 -
which will be reclassified into profit or loss   136 221 (85) (38.5)

hedging instruments

9.2.8.3 929 (396) 1,325 -

exchange differences on translating foreign operations

  (618) 542 (1,160) -

deferred tax

9.1.7.2
9.2.8.3
(175) 75 (250) -
    123 217 (94) (43.3)
Total net comprehensive income   7,296 5,957 1,339 22.5
Net profit attributable to   7,173 5,740 1,433 25.0

equity owners of the parent

  6,655 5,261 1,394 26.5

non-controlling interest

  518 479 39 8.1
Total net comprehensive income attributable to   7,296 5,957 1,339 22.5

equity owners of the parent

  6,717 5,445 1,272 23.4

non-controlling interest

  579 512 67 13.1
Net profit and diluted net profit per share attributable to equity owners of the parent (in PLN per share)   15,56 12,30 3,26 26.5

2. Consolidated statement of financial position

  NOTE 31/12/2017 31/12/2016 change (y/y)
ASSETS       value %
Non-current assets
Property, plant and equipment 9.2.1 29,071 27,671 1 400 5.1
Intangible assets 9.2.2 1,272 1,377 (105) (7.6)
Investments accounted for under equity method 9.2.4 715 763 (48) (6.3)
Deferred tax assets 9.1.7.2 49 167 (118) (70.7)
Derivatives 9.2.9 303 66 237 359.1
Other assets 9.2.9 330 277 53 19.1
    31,740 30,321 1 419 4,7
Current assets
Inventories 9.2.6.1 12,440 11,182 1,258 11.3
Trade and other receivables 9.2.6.2 9,518 8,553 965 11.3
Current tax assets   80 121 (41) (33.9)
Cash and cash equivalents   6,244 5,072 1,172 23.1
Non-current assets classified as held for sale   75 61 14 23,0
Derivatives 9.2.9 434 97 337 347.4
Other assets 9.2.9 133 152 (19) (12.5)
    28,924 25,238 3,686 14.6
Total assets   60,664 55,559 5,105 9.2
EQUITY AND LIABILITIES
EQUITY
Share capital 9.2.8.1 1,058 1,058 - -
Share premium 9.2.8.2 1,227 1,227 - -
Hedging reserve 9.2.8.3 331 (355) 686 (193.2)
Revaluation reserve   5 5 - -
Exchange differences on translating foreign operations   334 946 (612) (64.7)
Retained earnings 9.2.8.4 29,242 23,882 5,360 22.4
Equity attributable to equity owners of the parent   32,197 26,763 5,434 20.3
Non-controlling interests 9.2.8.5 3,014 2,522 492 19.5
Total equity   35,211 29,285 5,926 20.2
LIABILITIES
Non-current liabilities
Loans, borrowings and bonds 9.2.7.1 6,688 7,446 (758) (10.2)
Provisions 9.2.10 902 828 74 8.9
Deferred tax liabilities 9.1.7.2 1,095 809 286 35.4
Derivatives 9.2.9 75 280 (205) (73.2)
Other liabilities 9.2.9 311 289 22 7.6
    9,071 9,652 (581) (6.0)
Current liabilities          
Trade and other liabilities 9.2.6.3 14,469 13,591 878 6.5
Loans, borrowings and bonds 9.2.7.1 317 989 (672) (67.9)
Provisions 9.2.10 673 666 7 1,1
Current tax liabilities   290 659 (369) (56.0)
Derivatives 9.2.9 313 403 (90) (22.3)
Other liabilities 9.2.9 320 314 6 1.9
    16,382 16,622 (240) (1.4)
Total liabilities   25,453 26,274 (821) (3.1)
Total equity and liabilities   60,664 55,559 5,105 9.2

3.  Consolidated statement of changes in equity

  Equity attributable to equity owners of the parent    
  Share capital and share premium Hedging reserve Revaluation reserve Exchange differences on translating foreign operations Retained earnings Total Non-controlling interests Total equity
NOTE 9.2.8.1
9.2.8.2
9.2.8.3     9.2.8.4   9.2.8.5  
01/01/2017 2 285 (355) 5 946 23,882 26,763 2,522 29,285
Net profit - - - - 6,655 6,655 518 7,173
Items of other comprehensive income - 686 - (612) (12) 62 61 123
Total net comprehensive income - 686 - (612) 6,643 6,717 579 7,296
Change in structure - - - - - - 2 2
Dividends - - - - (1,283) (1,283) (89) (1 372)
31/12/2017 2,285 331 5 334 29,242 32,197 3,014 35,211
                 
01/01/2016 2,285 (80) - 537 19,431 22,173 2,071 24,244
Net profit - - - - 5,261 5,261 479 5,740
Items of other comprehensive income - (275) 5 463 (9) 184 33 217
Total net comprehensive income - (275) 5 463 5,252 5,445 512 5,957
Change in structure - - - (54) 54 - (1) (1)
Redemption of non-controlling interest - - - - (1) (1) (1) (2)
Merger/sale of related parties - - - (54) 55 1 - 1
Dividends - - - - (855) (855) (60) (915)
31/12/2016 2,285 (355) 5 946 23,882 26,763 2,522 29,285

4.  Consolidated statement of cash flows

    2017 2016 change (y/y)
        value %
Cash flows from operating activities          
Profit before tax   8,717 6,887 1,830 26,6
Adjustments for:          

Share in profit from investments accounted for under equity method

9.2.4 (248) (297) 49 16.5

Depreciation and amortisation

9.1.3 2,421 2,110 311 14.7

Foreign exchange (gain)/loss

9.1.6.4 (233) 287 (520) -

Interest, net

9.1.6.3 204 219 (15) (6.9)

Dividends

  (4) (5) 1 20.0

(Profit)/Loss on investing activities, incl.:

  549 (299) 848 -

recognition/(reversal) of impairment allowances of property, plant and equipment and intangible assets

9.1.4
9.1.5
169 (145) 314 -

Change in provisions

9.2.10 345 330 15 4.6

Change in working capital

9.2.6 (1,967) 816 (2,783) -

inventories

  (1,445) (287) (1,158) (403.5)

receivables

  (1,579) (1,679) 100 (6.0)

liabilities

  1,057 2,782 (1,725) (62.0)

Other adjustments, incl.:

  (131) (381) 250 65.6

change in balances of settlements due to compensation from insurers in Unipetrol Group

9.2.6.2 222 (222) 444 -

rights received free of charge

  (310) (240) (70) 29.2

Income tax (paid)

9.1.7.3 (1,603) (336) (1,267) (377.1)
Net cash from operating activities   8,050 9,331 (1,281) (13.7)
Cash flows from investing activities          
Acquisition of property, plant and equipment, intangible assets and perpetual usufruct of land   (4,039) (5,033) 994 19.8
Acquisition of shares adjusted for received cash   (3) (2) (1) (50.0)
Disposal of property, plant and equipment, intangible assets and perpetual usufruct of land   105 141 (36) (25.5)
Sale of subsidiary   - 77 (77) -
Dividends received   252 317 (65) (20.5)
Settlement of derivatives not designated as hedge accounting   (234) 60 (294) -
Other   (6) 4 (10) -
Net cash (used) in investing activities   (3,925) (4,436) 511 11.5
Cash flows from financing activities          
Proceeds from loans and borrowings received   6 3,586 (3,580) (99.8)
Bonds issued   400 3,258 (2,858) (87.7)
Repayments of loans and borrowings   (888) (7,943) 7,055 88.8
Redemption of bonds   (700) - (700) -
Interest paid 9.1.6.3 (234) (223) (11) (4.9)
Dividends paid   (1,384) (912) (472) (51.8)

to equity owners of the parent

9.2.8.7 (1,283) (855) (428) (50.1)

to non-controlling interest

  (101) (57) (44) (77.2)
Payments of liabilities under finance lease agreements   (28) (28) - -
Other   (4) 52 (56) -
Net cash (used) in financing activities   (2,832) (2,210) (622) (28.1)
Net increase in cash and cash equivalents   1,293 2,685 (1,392) (51.8)
Effect of exchange rate changes   (121) 39 (160) -
Cash and cash equivalents, beginning of the period   5,072 2,348 2,724 116,0
Cash and cash equivalents, end of the period   6,244 5,072 1,172 23.1

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