MIRA INFORM REPORT

Report Date :

01.03.2013

IDENTIFICATION DETAILS

Name :	VISTULA GROUP SA

Registered Office :	Ul. Starowislna 48 Krakow, 31-035

Country :	Poland

Financials (as on) :	31.12.2011

Year of Incorporation :	1948

Legal Form :	Public Independent

Line of Business :	Manufacture of other outerwear

No. of Employees :	2,301

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30^th, 2012

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Poland

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

POLAND - ECONOMIC OVERVIEW

Poland has pursued a policy of economic liberalization since 1990 and today stands out as a success story among transition economies. It is the only country in the European Union to avoid a recession through the 2008-09 economic downturn, although GDP per capita is still much below the EU average. Since 2004, EU membership and access to EU structural funds have provided a major boost to the economy. Unemployment has been 2% more than the EU average. Inflation reached a low of about 2.6% in 2010 due to the global economic slowdown, but climbed to 4.3% in 2011. Poland's economic performance could improve over the longer term if the country addresses some of the remaining deficiencies in its road and rail infrastructure and its business environment. An inefficient commercial court system, a rigid labor code, bureaucratic red tape, burdensome tax system, and persistent low-level corruption keep the private sector from performing up to its full potential. Weak revenues, together with rising demands to fund healthcare, education, and the state pension system caused the public sector budget deficit to rise to 7.8% of GDP in 2010, but the PO/PSL coalition government, which came to power in November 2007, took measures to shore up public finances - including increasing contributions to the public pension scheme at the expense of private pension funds - and reduced the deficit to 2.9% of GDP in 2011. For 2012 the coalition government has proposed further deficit-reducing reforms and to fulfill its promise to enact business-friendly reforms

Source : CIA

Company name and address Top of Form

Bottom of Form

Top of Form

VISTULA GROUP SA

ul. Starowislna 48


Krakow, 31-035
Poland


Tel:	48-12-3793500
Fax:	48-12-6565098

vistula.pl

Employees:

2,301

Company Type:

Public Independent

Traded:

Warsaw Stock Exchange:

VST

Incorporation Date:

1948

Auditor:

PRO AUDIT Kancelaria Bieglych Rewidentow

Financials in	USD (mil)
Fiscal Year End:	31-Dec-2011
Reporting Currency:	Polish New Zloty
Annual Sales:	130.8 ¹
Net Income:	0.0
Total Assets:	181.3 ²
Market Value:	48.3
	(15-Feb-2013)

Business Description

VISTULA GROUP SA, is a Poland-based holding that specializes in the design, manufacture and distribution of men clothing and accessories. The Company offers suits, jackets, coats, shirts and trousers, shoes, as well as accessories under the Vistula, Vistula Red, Lantier, Vesari, Wolczanka, Lambert, and other brand names. Through its subsidiary W. Kruk SA, the Company it is also active in the field of feminine fashion (Deni Cler brand) and jewelry, watches and accessories. The Company's own retail chain comprises 254 stores across Poland. As of December 31, 2011, the Company operated through its direct and indirect subsidiaries, including Vistula & Wolczanka Production Sp. z o.o. (former MTM Sp. z o.o), Trend Fashion Sp. z o.o., DCG SA and Wolczanka Production 3 Sp. z o.o. For the nine months ended 30 September 2012, VISTULA GROUP SA revenues increased 4% to PLN277.6M. Net income totaled PLN3.7M vs. loss of PLN10.9M. Revenues reflect Unallocated segment increase of 99% to PLN1.4M. Net Income reflects Other Operating Expenses decrease of 50% to PLN5.5M (expense), Other Financial Expense decrease of 18% to PLN16.2M (expense). Basic Earnings per Share excluding Extraordinary Items increased from -PLN0.10 to PLN0.03.

Industry

Industry	Apparel and Accessories
ANZSIC 2006:	1351 - Clothing Manufacturing
NACE 2002:	1822 - Manufacture of other outerwear
NAICS 2002:	315222 - Men's and Boys' Cut and Sew Suit, Coat, and Overcoat Manufacturing
UK SIC 2003:	18221 - Manufacture of other men's outerwear
UK SIC 2007:	14131 - Manufacture of men's outerwear, other than leather clothes and workwear
US SIC 1987:	2311 - Men's and Boys' Suits, Coats, and Overcoats

Key Executives

Name	Title
Artur Piotr Jedrzejewski	Member of the Supervisory Board
Alicja Weber	Chief Accountant
Erwin Bakalarz	Investor Relations Contact Officer
Michal Wojcik	President
Jerzy Mazgaj	Chairman of the Supervisory Board

Significant Developments

Topic	#*	Most Recent Headline	Date
Equity Financing / Related	4	Warsaw Stock Exchange Admits VISTULA GROUP SA's Series K Shares to Trading	4-Oct-2012
Equity Investments	1	ING Otwarty Fundusz Emerytalny Raises Its Stake in VISTULA GROUP SA	24-Aug-2012

Financial Summary

As of 30-Sep-2012

Key Ratios	Company	Industry
Current Ratio (MRQ)	1.41	2.75
Quick Ratio (MRQ)	0.22	1.45
Debt to Equity (MRQ)	0.70	0.52
Sales 5 Year Growth	16.48	10.05
Net Profit Margin (TTM) %	3.65	7.39
Return on Assets (TTM) %	2.30	7.59
Return on Equity (TTM) %	4.73	15.09

Stock Snapshot

Traded: Warsaw Stock Exchange: VST

As of 15-Feb-2013

Financials in: PLN

Recent Price	1.13	EPS	-0.02
52 Week High	1.37	Price/Sales	0.39
52 Week Low	0.72	Price/Earnings	6.20
Avg. Volume (mil)	0.51	Price/Book	0.43
Market Value (mil)	151.26	Beta	1.14

	Price % Change	Rel S&P 500%
4 Week	-5.83%	-2.90%
13 Week	25.56%	18.53%
52 Week	-11.52%	-20.94%
Year to Date	4.63%	7.09%

1 - Profit & Loss Item Exchange Rate: USD 1 = PLN 2.964349
2 - Balance Sheet Item Exchange Rate: USD 1 = PLN 3.43395

Corporate Overview

Location
ul. Starowislna 48
Krakow, 31-035
Poland

Tel:	48-12-3793500
Fax:	48-12-6565098

vistula.pl

Quote Symbol - Exchange
VST - Warsaw Stock Exchange

Sales PLN(mil):	387.7
Assets PLN(mil):	622.7
Employees:	2,301
Fiscal Year End:	31-Dec-2011


Industry:	Apparel and Accessories

Incorporation Date:	1948
Company Type:	Public Independent
Quoted Status:	Quoted
Previous Name:	Vistula & WÃ³lczanka S.A.


President :	Michal Wojcik

Industry Codes

ANZSIC 2006 Codes:
1351	-	Clothing Manufacturing
4253	-	Watch and Jewellery Retailing
4251	-	Clothing Retailing
6240	-	Financial Asset Investing
3712	-	Clothing and Footwear Wholesaling
3732	-	Jewellery and Watch Wholesaling

NACE 2002 Codes:
1822	-	Manufacture of other outerwear
5248	-	Other retail sale in specialised stores
7415	-	Management activities of holding companies
5142	-	Wholesale of clothing and footwear
5147	-	Wholesale of other household goods
5242	-	Retail sale of clothing
1823	-	Manufacture of underwear

NAICS 2002 Codes:
315222	-	Men's and Boys' Cut and Sew Suit, Coat, and Overcoat Manufacturing
551112	-	Offices of Other Holding Companies
423940	-	Jewelry, Watch, Precious Stone, and Precious Metal Merchant Wholesalers
315224	-	Men's and Boys' Cut and Sew Trouser, Slack and Jean Manufacturing
315223	-	Men's and Boys' Cut and Sew Shirt (except Work Shirt) Manufacturing
448120	-	Women's Clothing Stores
315212	-	Women's, Girls', and Infants' Cut and Sew Apparel Contractors
448310	-	Jewelry Stores
448110	-	Men's Clothing Stores
424320	-	Men's and Boys' Clothing and Furnishings Merchant Wholesalers

US SIC 1987:
2311	-	Men's and Boys' Suits, Coats, and Overcoats
5944	-	Jewelry Stores
5621	-	Women's Clothing Stores
2325	-	Men's and Boys' Separate Trousers and Slacks
2321	-	Men's and Boys' Shirts, Except Work Shirts
6719	-	Offices of Holding Companies, Not Elsewhere Classified
5094	-	Jewelry, Watches, Precious Stones, and Precious Metals
5136	-	Men's and Boy's Clothing and Furnishings
5611	-	Men's and Boys' Clothing and Accessory Stores
2335	-	Women's, Misses', and Juniors' Dresses

UK SIC 2003:
18221	-	Manufacture of other men's outerwear
52484	-	Retail sale of jewellery, clocks and watches
7415	-	Management activities of holding companies
18222	-	Manufacture of other women's outerwear
18231	-	Manufacture of men's underwear
5142	-	Wholesale of clothing and footwear
52423	-	Retail sale of other women's clothing
51473	-	Wholesale of jewellery
52424	-	Retail sale of other men's clothing

UK SIC 2007:
14131	-	Manufacture of men's outerwear, other than leather clothes and workwear
4777	-	Retail sale of watches and jewellery in specialised stores
4771	-	Retail sale of clothing in specialised stores
14141	-	Manufacture of men's underwear
4642	-	Wholesale of clothing and footwear
14132	-	Manufacture of women's outerwear, other than leather clothes and workwear
642	-	Activities of holding companies
4648	-	Wholesale of watches and jewellery

Business Description

More Business Descriptions

Manufacture and sale of men's clothing

Men's Clothing Retailer & Mfr

Financial Data

Financials in:	PLN(mil)

Revenue:	387.7
Net Income:	0.0
Assets:	622.7
Long Term Debt:	169.5
Total Liabilities:	326.8
Working Capital:	0.0

Date of Financial Data:	31-Dec-2011

1 Year Growth

9.5%

-99.6%

-3.1%

Market Data

Quote Symbol:	VST
Exchange:	Warsaw Stock Exchange
Currency:	PLN
Stock Price:	1.1
Stock Price Date:	02-15-2013
52 Week Price Change %:	-11.5
Market Value (mil):	151,263.6

SEDOL:	4922111
ISIN:	PLVSTLA00011

Equity and Dept Distribution:
11/2006, Company name changed from Vistula S.A.09/2007, 10-for-1 stock split. 12/2008, Company name changed from Vistula & WÃ³lczanka SA 7/2012, Rights Issue, 1 new share for every 6 shares held @ PLN0.8 (Factor: 1.01007).

Subsidiaries

Company	Percentage Owned	Country
DCG SA	100%	POLAND
WÃ³lczanka Production 3 Sp zoo	95%	POLAND
Andre Renard Sp zoo	70%	POLAND
Fleet Management GmbH	100%	GERMANY
Vistula & WÃ³lczanka Production Sp zoo	100%	POLAND
Trend Fashion Sp zoo	100%	POLAND

Shareholders

Major Shareholders

OFE PZU Zlota Jesien, Poland (19.61%); ING OFE SA, Poland (9.66%); WK INVESTMENT Wojciech Kruk Sp k a, Poland (9.3%); Alma Market SA, Poland (9.26%)

Key Corporate Relationships

Auditor:	PRO AUDIT Kancelaria Bieglych Rewidentow
Bank:	BRE Bank SA

Auditor:	PRO AUDIT Kancelaria Bieglych Rewidentow, PRO AUDIT Kancelaria Bieglych RewidentÃ³w Sp zoo

Executives Report

Board of Directors

Name

Title

Function

Wojciech Kruk

Vice Chairman

Chairman

Jerzy Mazgaj

Chairman of the Supervisory Board

Chairman

Biography:

Mr. Jerzy Mazgaj has served as Chairman of the Supervisory Board at VISTULA GROUP SA since July 2, 2008. He was appointed Chairman of the Management Board and General Director of Alma Market SA in May 1999. He is also Chairman of the Supervisory Board of Alma Market SA's subsidiary Krakchemia SA, as well as Chairman of the Management Board at ALMA Development Sp. z o.o., Krakowski Kredens Sp. z o.o., AM1 SP. z o.o. and AM2 SP. z o.o. He studied German Language at Uniwersytet Jagiellonski, Krakow.

Age: 53

Compensation/Salary:106,000

Compensation Currency: PLN

Grzegorz Pilch

Chairman of the Management Board

Chairman

Biography:

Mr. Grzegorz Pilch has been Chairman of the Management Board of VISTULA GROUP SA since October 9, 2009. Prior to that, he served as Vice Chairman of the Company's Management Board from July 15, 2008 till October 9, 2009. From 1993 to 1999, he served as Stockbroker, Head of the Operating Department and Deputy Director of a branch of Dom Maklerski PENETRATOR SA. In 1999, he was appointed Member of the Management Board and Operational Director of Alma Market SA, where from 2001 to 2008, he served as Vice Chairman of the Management Board and Managing Director. From July to December 2008, he was Member of the Supervisory Board at W.KRUK SA. In addition, he serves as Vice Chairman of the Supervisory Board at Krakchemia SA and Premium Cigars Sp. z o.o., as well as Member of the Supervisory Board at DCG SA and Instal Krakow SA, among others. He graduated from the Faculty of Management of Akademia Ekonomiczna w Krakowie (currently Uniwersytet Ekonomiczny w Krakowie).

Age: 44

Education:

Uniwersytet Ekonomiczny w Krakowie, M (Economics)

Compensation/Salary:708,000

Compensation Currency: PLN

Ilona Malik

Vice Chairman of the Supervisory Board

Vice-Chairman

Biography:

Ms. Ilona Malik serves as Vice Chairman of the Supervisory Board of VISTULA GROUP SA. She was appointed Member of the Supervisory Board of VISTULA GROUP SA on June 29, 2009. Between 2002 and 2006, she served at the Marshal's Office of Malopolska Region, initially at graduate internship, and then as Supervisor of Organizational and Legal Issues, in 2005 she was appointed to Independent Position for Internal Audit and Complaints. From 2006 to 2008, she acted as Head of the Organizational-Legal Section and as the Patients' Ombudsman in the Regional Specialist Hospital named after L. Rydygier. In 2008, she joined Nafta Polska SA as Deputy Director in Privatization Office, and subsequently, she was appointed Director in Privatization Office. Since 2009, she has served at the Legal Department at TAURON Polska Energia SA. She graduated from the Faculty of Law and Administration of Uniwersytet Jagiellonski, Krakow. She completed several courses on audit, management and members of the supervisory boards.

Age: 36

Education:

Uniwersytet Jagiellonski, Krakow (Law)

Compensation/Salary:92,000

Compensation Currency: PLN

Aldona Sobierajewicz

Vice Chairman of the Management Board

Vice-Chairman

Biography:

Ms. Aldona Sobierajewicz has served as Vice Chairman of the Management Board at VISTULA GROUP SA since October 15, 2008. She worked as Polish language Teacher from 1990 to 1996. From 1994 to 2004 she worked in Avon Cosmetics Polska Sp. z o.o. as District, Division and later Regional Director of Sales. In February 2005, she became Sales Director in W. Kruk SA based in Poznan, Poland. She was appointed as Vice Chairman of the Management Board of W. Kruk SA on October 1, 2007. She graduated from the Faculty of Polish Philology of Uniwersytet im. Adama Mickiewicza w Poznaniu. She also completed MBA Poznan-Atlanta program at Akademia Ekonomiczna w Poznaniu (currently Uniwersytet Ekonomiczny w Poznaniu) in 2008.

Education:

Uniwersytet Ekonomiczny w Poznaniu, MBA
Uniwersytet im. Adama Mickiewicza w Poznaniu

Compensation/Salary:336,000

Compensation Currency: PLN

Mateusz Zmijewski

Vice Chairman of the Management Board

Vice-Chairman

Biography:

Mr. Mateusz Zmijewski has served as Vice Chairman of the Management Board of VISTULA GROUP SA since July 15, 2008. He was previously Member of the Management Board at the Company until December 31, 2005. He worked in Rentier s.c. as Insurance Advisor and in BTW Investment Services as Analyst. He worked as Analyst in Vistula SA from 2000 to 2002, as Main Accountant in Vistula SA in 2002. He was Member of the Management Board of Vistula SA from 2003 to 2006. He was Member of the Management Board of Reporter SA from January to July 2008. In addition, he serves as Member of the Supervisory Board of DCG S.A., Trend Fashion Sp. z o.o. and Wolczanka Production 3 Sp. z o.o. He graduated from the Faculty of Management of Akademia Ekonomiczna w Krakowie (currently Uniwersytet Ekonomiczny w Krakowie).

Education:

Uniwersytet Ekonomiczny w Krakowie

Compensation/Salary:372,000

Compensation Currency: PLN

Executives

Name

Title

Function

Michal Wojcik

President

Artur Piotr Jedrzejewski

Member of the Supervisory Board

Administration Executive

Biography:

Mr. Artur Jedrzejewski has served as Member of the Supervisory Board of VISTULA GROUP SA since April 23, 2012. Since 2003 he has been Managing Director of Carlson Private Equity Ltd and since 2010, he is a Member of the Board and Chief Executive Officer at Bouchard & Cie AG based in Switzerland. He is also Secretary of the Supervisory Board at Polimex-Mostostal SA and Member of the Supervisory Board of Gaudi Management SA, Art New media SA, Liberty Group SA and Ventus Asset Management SA as well as he is Chairman of the Supervisory Board at Hotblok SA and Kolor Mix Sp. z o.o. In 1994, he served as Credit Analyst at Bank Pekao SA. Between 1994 and 1996 he worked as a Management Accountant in the Finance Department of Commercial Union Towarzystwo Ubezpieczen na Zycie Polska SA. From 1996 to 2000 at BRE Corporate Finance SA he worked as a Consultant, Senior Consultant and Manager. From 2000 to 2001 he worked as Director of Business Analysis in Netia Telekom SA. Between 2001 and 2002 he was Director of Mergers and Acquisitions in the BRE Corporate Finance SA. From 2002 to 2011 he served as Chairman of the Management Board at Carlson Capital Partners Sp. z o.o. and from 2007 to 2011 he held the same post at Gaudi Management SA. He graduated from Szkola Glowna Handlowa w Warszawie and has a degree in finance and banking. Following his doctoral study at Szkola Glowna Handlowa w Warszawie he got specialization in insurance and pension funds. He also holds a Master of Business Administration degree from University of Minnesota, (the WEMBA program).

Education:

University of Minnesota, MBA (Business Administration)
Szkola Glowna Handlowa, DS (Insurance)
Szkola Glowna Handlowa, M (Finance and Banking)

Michal Mierzejewski

Member of the Supervisory Board

Administration Executive

Biography:

Mr. Michal Mierzejewski has served as Member of the Supervisory Board at VISTULA GROUP SA since June 29, 2009. Between 1999 and 2000, he was Lawyer at the Legal Department of State Center for Strategic Studies. From 2000 to 2004, he was employed by Polska Agencja Inwestycji Zagranicznych SA, where finally he served as Director of Investors' Service Department. Since 2004, he has served at Philip Morris Polska, currently as Corporate Department Director and Member of the Management Board. During his professional career, he acted as Member of the Supervisory Board at Przedsiebiorstwo Gospodarstwa Komunalnego w Radomsku Sp. z o.o from 2000 to 2001, Zarzad Morskiego Portu Gdynia SA from 2002 to 2004, and at Finat-Transfer Finansowy Sp. z o.o. from 2008 to 2010. Since 2007, he has been Member of the Supervisory Board at Zarzad Palacu Kultury i Nauki Sp. z o.o. He graduated from the Faculty of Law and Administration of Uniwersytet Warszawski. He was also a scholar at Vienna Institute.

Education:

Uniwersytet Warszawski

Compensation/Salary:92,000

Compensation Currency: PLN

Miroslaw Panek

Member of the Supervisory Board

Administration Executive

Biography:

Mr. Miroslaw Panek has served as Member of the Supervisory Board at VISTULA GROUP SA since June 29, 2009. From 1994 to 1996, he was Investment Advisor at Customer Service Office of Bank Handlowy w Warszawie SA. Between 1997 and 1998, he acted as Investment Advisor and Member of the Management Board at ABN AMRO Asset Management (Polska) SA. From 1999 to 2006, he served as Investment Director at ING Investment Management (Polska) SA and from 2002 to 2006, he also acted as Chairman of the Management Board at ING TFI and ING Investment Management (Polska) SA. Between 2006 and 2007, he served as Member of the Management Board at PZU SA, as well as Chairman of the Supervisory Board at PZU Asset Management SA and Member of the Supervisory Board at PHF SA. Since 2009, he has been Member of the Supervisory Board at ATM SA and Mostostal Zabrze - Holding SA and since 2010 he has been Member of the Supervisory Board at Mennica Polska SA and since 2011 at Protektor SA, among others. He has been also Member at Komisja Egzaminacyjna dla Doradcow Inwestycyjnych przy KPWiG, as well as other institutions. He graduated from the Faculty of Physics of Uniwersytet Warszawski. He also obtained a Doctorate in Philosophy degree in Astrophysics from Polska Akademia Nauk - PAN. In 2000, he received a Chartered Financial Analyst (CFA) certificate. He also has a license of a stock broker (1992) and of investment advisor (1994).

Age: 53

Education:

Polska Akademia Nauk - PAN, DS (Astrophysics)
Uniwersytet Warszawski

Compensation/Salary:92,000

Compensation Currency: PLN

Grzegorz Wojtowicz

Member of the Supervisory Board

Administration Executive

Biography:

Mr. Grzegorz Wojtowicz has served as Member of the Supervisory Board of VISTULA GROUP SA since April 23, 2012. Since 2011 he also manages his own law firm. Between 2007 and 2011 he was a trainee lawyer at the District Bar Council in Warsaw and in 2011 passed the bar examination. Between 2001 and 2003, Mr. Wojtowicz was the Practice in the Tax Office Nowy Swiat Sp. z o.o. In the period from 2008 to 2011, he served at Broniszewski & Granecki kancelaria Adwokacka Sp. j. He graduated from Uniwersytet Warszawski.

Education:

Uniwersytet Warszawski

Alicja Weber

Chief Accountant

Accounting Executive

Erwin Bakalarz

Investor Relations Contact Officer

Other

Significant Developments

Warsaw Stock Exchange Admits VISTULA GROUP SA's Series K Shares to Trading

Oct 04, 2012

VISTULA GROUP SA announced that on October 3, 2012, Management Board of Warsaw Stock Exchange decided to admit the Company's 22,310,270 series K shares of nominal value of PLN 0.2 per share to trading on the Main Market of Warsaw Stock Exchange on October 8, 2012.

VISTULA GROUP SA Announces Last Day of Series K Shares Listing

Oct 04, 2012

VISTULA GROUP SA announced that following its General Meeting held on October 3, 2012, it established October 5, 2012 as last day of listing of 22,310,270 series K shares with nominal value amounting to PLN 0.2 per share.

ING Otwarty Fundusz Emerytalny Raises Its Stake in VISTULA GROUP SA

Aug 24, 2012

VISTULA GROUP SA announced that on August 24, 2012, fund ING Otwarty Fundusz Emerytalny raised its stake in the Company's share capital. Before the transaction, ING Otwarty Fundusz Emerytalny owned a number of 8.939.864 shares representing an 8.01% stake in the Company's share capital. Following the transaction, ING Otwarty Fundusz Emerytalny owns an 11.35% stake in the Company's share capital, comprised of 15,189,864 shares.

VISTULA GROUP SA Comments on Subscription of Series K Shares

Aug 23, 2012

VISTULA GROUP SA announced that it has completed subscription of the Company's 22.310.270 series K ordinary bearer shares of the nominal value of PLN 0.2 per share. The issuance price amounts to PLN 248.120,38 net.

VISTULA GROUP SA Completes Issuance of Series K Shares

Aug 09, 2012

VISTULA GROUP SA announced that it has completed issuance of the Company's 22,310,270 ordinary K series shares of the nominal value PLN 0.2 per share. There have been subscribed 22,310,270 of the company's shares. The issue price amountes to PLN 0.8 per share. As a result of the subscribtion there have been acquired 12,698,934 of the Company's series K shares. The total value of the subscription amounted to PLN 17,848,216.

Annual Income Statement

Financials in: USD (mil)
Except for share items (millions) and per share items (actual units)

Financial Glossary

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Updated Normal 31-Dec-2008	Restated Normal 31-Dec-2008
Filed Currency	PLN	PLN	PLN	PLN	PLN
Exchange Rate (Period Average)	2.964349	3.017571	3.113934	2.409971	2.76483
Auditor	PROAUDIT	PRO AUDIT Kancelaria Bieglych Rewidentow	PRO AUDIT Kancelaria Bieglych Rewidentow	PKF Audit Sp. z o.o.	PKF Consult Sp. z o.o.
Auditor Opinion	Unqualified	Unqualified	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation

Net Sales	130.8	117.3	131.2	209.5	148.9
Revenue	130.8	117.3	131.2	209.5	148.9
Total Revenue	130.8	117.3	131.2	209.5	148.9

Cost of Revenue	61.0	52.8	63.5	96.0	70.5
Cost of Revenue, Total	61.0	52.8	63.5	96.0	70.5
Gross Profit	69.8	64.5	67.6	113.5	78.4

Selling/General/Administrative Expense	61.3	57.1	69.0	104.1	71.6
Total Selling/General/Administrative Expenses	61.3	57.1	69.0	104.1	71.6
Loss (Gain) on Sale of Assets - Operating	-1.4	-0.2	-0.3	-0.8	-7.5
Unusual Expense (Income)	-1.4	-0.2	-0.3	-0.8	-7.5
Other Operating Expense	5.1	2.6	6.4	67.3	5.6
Other, Net	-3.7	-2.7	-20.4	-3.0	-12.5
Other Operating Expenses, Total	1.4	-0.2	-14.0	64.3	-6.9
Total Operating Expense	122.2	109.6	118.2	263.5	127.7

Operating Income	8.5	7.7	12.9	-54.1	21.2

Interest Expense - Non-Operating	-7.1	-6.7	-7.6	-9.3	-1.0
Interest Expense, Net Non-Operating	-7.1	-6.7	-7.6	-9.3	-1.0
Interest Income - Non-Operating	0.0	0.0	0.0	0.4	0.8
Investment Income - Non-Operating	-0.9	0.1	-	-	-
Interest/Investment Income - Non-Operating	-0.8	0.1	0.0	0.4	0.8
Interest Income (Expense) - Net Non-Operating Total	-8.0	-6.7	-7.6	-8.9	-0.2
Gain (Loss) on Sale of Assets	-0.2	-	-	0.0	1.1
Other Non-Operating Income (Expense)	0.1	-0.5	-1.7	-3.0	1.0
Other, Net	0.1	-0.5	-1.7	-3.0	1.0
Income Before Tax	0.5	0.5	3.6	-65.9	23.1

Total Income Tax	0.5	0.0	-1.9	0.3	1.9
Income After Tax	0.0	0.6	5.4	-66.2	21.2

Net Income Before Extraord Items	0.0	0.6	5.4	-66.2	21.2
Net Income	0.0	0.6	5.4	-66.2	21.2

Income Available to Common Excl Extraord Items	0.0	0.6	5.4	-66.2	21.2

Income Available to Common Incl Extraord Items	0.0	0.6	5.4	-66.2	21.2

Basic/Primary Weighted Average Shares	112.7	112.7	104.7	82.0	80.9
Basic EPS Excl Extraord Items	-	0.00	0.05	-0.81	0.26
Basic/Primary EPS Incl Extraord Items	-	0.00	0.05	-0.81	0.26
Dilution Adjustment	-	-	-	0.0	-
Diluted Net Income	0.0	0.6	5.4	-66.2	21.2
Diluted Weighted Average Shares	120.8	120.8	114.0	82.0	80.9
Diluted EPS Excl Extraord Items	-	0.00	0.05	-0.81	0.26
Diluted EPS Incl Extraord Items	-	0.00	0.05	-0.81	0.26
Dividends per Share - Common Stock Primary Issue	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.0	0.0
Interest Expense, Supplemental	7.1	6.7	7.6	9.3	1.0
Depreciation, Supplemental	4.2	4.7	5.0	6.2	4.9
Total Special Items	-1.2	-0.2	-0.3	-0.8	-8.6
Normalized Income Before Tax	-0.7	0.4	3.3	-66.7	14.5

Effect of Special Items on Income Taxes	-0.4	-0.1	-0.1	-0.3	-0.7
Inc Tax Ex Impact of Sp Items	0.1	-0.1	-1.9	0.0	1.2
Normalized Income After Tax	-0.8	0.4	5.3	-66.7	13.3

Normalized Inc. Avail to Com.	-0.8	0.4	5.3	-66.7	13.3

Basic Normalized EPS	-0.01	0.00	0.05	-0.81	0.16
Diluted Normalized EPS	-0.01	0.00	0.05	-0.81	0.16
Amort of Intangibles, Supplemental	0.4	0.5	0.6	0.7	0.3
Normalized EBIT	7.2	7.5	12.7	-54.9	13.7
Normalized EBITDA	11.8	12.8	18.3	-47.9	18.9
Current Tax - Total	0.2	0.2	0.1	1.6	-
Current Tax - Total	0.2	0.2	0.1	1.6	-
Deferred Tax - Total	0.3	-0.2	-1.9	-1.3	-
Deferred Tax - Total	0.3	-0.2	-1.9	-1.3	-
Income Tax - Total	0.5	0.0	-1.9	0.3	-

Annual Balance Sheet

Financials in: USD (mil)

Financial Glossary

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
UpdateType/Date	Restated Normal 30-Jun-2012	Updated Normal 31-Dec-2010	Reclassified Normal 31-Dec-2010	Restated Normal 31-Dec-2009	Restated Normal 31-Dec-2008
Filed Currency	PLN	PLN	PLN	PLN	PLN
Exchange Rate	3.43395	2.95445	2.8617	2.963	2.45935
Auditor	PROAUDIT	PRO AUDIT Kancelaria Bieglych Rewidentow	PRO AUDIT Kancelaria Bieglych Rewidentow	PKF Audit Sp. z o.o.	PKF Consult Sp. z o.o.
Auditor Opinion	Unqualified	Unqualified	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation

Cash	-	1.9	2.2	4.5	-
Cash & Equivalents	3.1	6.2	4.9	4.5	26.0
Short Term Investments	0.0	0.0	0.1	0.5	0.2
Cash and Short Term Investments	3.1	8.1	7.2	9.5	26.2
Accounts Receivable - Trade, Gross	-	20.3	21.2	18.6	21.3
Provision for Doubtful Accounts	-	-14.5	-15.9	-10.2	-11.8
Trade Accounts Receivable - Net	6.6	6.5	6.1	11.7	9.6
Other Receivables	-	0.1	0.1	2.7	3.9
Total Receivables, Net	6.6	6.6	6.1	14.4	13.5
Inventories - Finished Goods	38.3	42.6	46.5	68.2	50.4
Inventories - Work In Progress	0.6	1.1	1.6	3.0	2.5
Inventories - Raw Materials	5.1	6.7	6.3	7.8	8.0
Inventories - Other	-0.9	-1.6	-3.0	-4.5	-7.7
Total Inventory	43.1	48.8	51.4	74.5	53.2
Other Current Assets	0.2	0.3	0.1	1.4	0.8
Other Current Assets, Total	0.2	0.3	0.1	1.4	0.8
Total Current Assets	52.9	63.8	64.9	99.8	93.6

Buildings	13.6	29.1	33.6	43.2	31.1
Machinery/Equipment	-	22.8	30.8	47.2	49.2
Construction in Progress	-	0.3	0.4	1.9	4.3
Property/Plant/Equipment - Gross	13.6	52.3	64.8	92.3	84.5
Accumulated Depreciation	-	-29.7	-36.3	-49.2	-49.6
Property/Plant/Equipment - Net	13.6	22.6	28.5	43.1	34.9
Goodwill - Gross	-	-	-	64.6	-
Goodwill, Net	70.6	82.6	85.3	147.0	25.7
Intangibles - Gross	38.6	45.2	46.6	-	-
Accumulated Intangible Amortization	-4.7	-5.5	-5.1	-24.3	-
Intangibles, Net	33.9	39.7	41.5	-24.3	38.4
LT Investments - Other	4.8	0.4	0.4	0.4	0.1
Long Term Investments	4.8	0.4	0.4	0.4	0.1
Note Receivable - Long Term	0.5	0.9	1.0	0.1	0.0
Deferred Income Tax - Long Term Asset	5.0	5.9	5.9	3.7	3.0
Other Long Term Assets	0.0	1.7	0.0	1.0	0.9
Other Long Term Assets, Total	5.0	7.6	5.9	4.7	4.0
Total Assets	181.3	217.6	227.5	270.7	196.6

Accounts Payable	20.2	12.2	13.7	27.4	-
Payable/Accrued	-	-	-	-	43.2
Accrued Expenses	-	3.7	3.7	5.7	-
Notes Payable/Short Term Debt	15.2	19.1	9.2	103.8	3.0
Current Portion - Long Term Debt/Capital Leases	2.3	6.2	6.9	3.1	3.3
Other Current Liabilities	3.3	8.2	11.9	35.1	3.3
Other Current liabilities, Total	3.3	8.2	11.9	35.1	3.3
Total Current Liabilities	40.9	49.4	45.4	175.2	52.8

Long Term Debt	49.3	60.1	71.2	6.5	9.4
Capital Lease Obligations	0.0	0.1	0.6	7.8	2.9
Total Long Term Debt	49.4	60.1	71.8	14.3	12.3
Total Debt	66.8	85.4	87.9	121.3	18.6

Deferred Income Tax - LT Liability	0.5	0.5	0.5	0.4	0.5
Deferred Income Tax	0.5	0.5	0.5	0.4	0.5
Reserves	4.4	5.8	5.9	0.3	0.3
Other Long Term Liabilities	0.0	0.0	0.0	0.0	0.0
Other Liabilities, Total	4.4	5.8	6.0	0.3	0.3
Total Liabilities	95.2	115.7	123.7	190.3	65.9

Common Stock	7.1	8.3	8.6	7.7	7.4
Common Stock	7.1	8.3	8.6	7.7	7.4
Retained Earnings (Accumulated Deficit)	79.0	93.6	95.2	72.7	123.3
Total Equity	86.2	101.9	103.8	80.4	130.8

Total Liabilities & Shareholdersâ€™ Equity	181.3	217.6	227.5	270.7	196.6

Shares Outstanding - Common Stock Primary Issue	112.7	112.7	112.7	104.3	81.0
Total Common Shares Outstanding	112.7	112.7	112.7	104.3	81.0
Employees	-	2,283	2,842	2,743	2,383
Accumulated Intangible Amort, Suppl.	4.7	5.5	5.1	3.7	2.9
Total Long Term Debt, Supplemental	51.6	67.9	86.3	-	-
Long Term Debt Maturing within 1 Year	2.2	7.9	15.1	-	-
Long Term Debt Matur. in Year 6 & Beyond	49.3	60.1	71.2	-	-
Total Capital Leases, Supplemental	-	0.6	1.6	10.0	3.9
Capital Lease Payments Due in Year 1	-	0.0	0.0	0.0	0.3
Capital Lease Payments Due in Year 2	-	0.1	0.4	0.9	0.8
Capital Lease Payments Due in Year 3	-	0.1	0.4	0.9	0.8
Capital Lease Payments Due in Year 4	-	0.1	0.4	0.9	0.8
Capital Lease Payments Due in Year 5	-	0.1	0.4	0.9	0.8
Capital Lease Payments Due in 2-3 Years	-	0.3	0.8	1.8	1.6
Capital Lease Payments Due in 4-5 Years	-	0.3	0.8	1.8	1.6
Cap. Lease Pymts. Due in Year 6 & Beyond	-	0.0	0.0	6.4	0.3

Annual Cash Flows

Financials in: USD (mil)

Financial Glossary

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Reclassified Normal 31-Dec-2010	Updated Normal 31-Dec-2008	Reclassified Normal 31-Dec-2008
Filed Currency	PLN	PLN	PLN	PLN	PLN
Exchange Rate (Period Average)	2.964349	3.017571	3.113934	2.409971	2.76483
Auditor	PROAUDIT	PRO AUDIT Kancelaria Bieglych Rewidentow	PRO AUDIT Kancelaria Bieglych Rewidentow	PKF Audit Sp. z o.o.	PKF Consult Sp. z o.o.
Auditor Opinion	Unqualified	Unqualified	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation

Net Income/Starting Line	0.0	0.6	5.4	-66.2	21.2
Depreciation	4.6	5.3	5.7	8.5	5.2
Depreciation/Depletion	4.6	5.3	5.7	8.5	5.2
Other Non-Cash Items	4.3	4.3	-9.6	64.3	-22.5
Non-Cash Items	4.3	4.3	-9.6	64.3	-22.5
Accounts Receivable	-1.7	-1.0	8.3	-4.7	-1.3
Inventories	-6.2	0.9	22.5	-37.3	-20.8
Payable/Accrued	7.4	0.4	-15.6	29.5	19.3
Other Operating Cash Flow	-7.1	-6.9	-7.4	-3.2	-1.4
Changes in Working Capital	-7.7	-6.6	7.7	-15.8	-4.2
Cash from Operating Activities	1.3	3.5	9.2	-9.2	-0.3

Purchase of Fixed Assets	-3.6	-3.1	-5.2	-16.9	-13.2
Purchase/Acquisition of Intangibles	-0.1	0.0	-1.2	-1.2	-0.2
Capital Expenditures	-3.8	-3.1	-6.4	-18.2	-13.4
Acquisition of Business	0.0	0.0	0.0	-122.5	0.0
Sale of Business	0.1	0.0	0.0	0.0	0.0
Sale of Fixed Assets	3.7	0.5	1.3	13.3	5.9
Sale/Maturity of Investment	0.0	0.1	0.1	0.0	0.0
Purchase of Investments	0.0	0.0	0.0	0.3	0.0
Other Investing Cash Flow	0.0	0.0	0.0	0.4	0.6
Other Investing Cash Flow Items, Total	3.9	0.7	1.4	-108.4	6.5
Cash from Investing Activities	0.1	-2.4	-5.0	-126.6	-6.9

Sale/Issuance of Common	0.0	16.6	11.7	19.0	1.5
Common Stock, Net	0.0	16.6	11.7	19.0	1.5
Issuance (Retirement) of Stock, Net	0.0	16.6	11.7	19.0	1.5
Long Term Debt Reduction	-0.5	-0.9	-1.0	-5.0	-0.9
Long Term Debt, Net	-0.5	-0.9	-1.0	-5.0	-0.9
Total Debt Issued	5.1	0.9	3.3	130.2	2.6
Total Debt Reduction	-10.0	-16.5	-20.3	-23.9	-2.1
Issuance (Retirement) of Debt, Net	-5.4	-16.5	-18.0	101.3	-0.3
Cash from Financing Activities	-5.4	0.1	-6.2	120.3	1.2

Foreign Exchange Effects	-	-	0.0	0.0	0.0
Net Change in Cash	-4.0	1.2	-2.0	-15.4	-6.0

Net Cash - Beginning Balance	8.1	6.8	8.5	26.5	29.2
Net Cash - Ending Balance	4.0	7.9	6.6	11.0	23.1
Cash Interest Paid	7.1	6.8	7.4	8.3	0.9
Cash Taxes Paid	0.0	0.2	0.0	7.4	0.5

Annual Income Statement

Financials in: USD (mil)
Except for share items (millions) and per share items (actual units)

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Updated Normal 31-Dec-2008	Restated Normal 31-Dec-2008
Filed Currency	PLN	PLN	PLN	PLN	PLN
Exchange Rate (Period Average)	2.964349	3.017571	3.113934	2.409971	2.76483
Auditor	PRO AUDIT Kancelaria Bieglych Rewidentow	PRO AUDIT Kancelaria Bieglych Rewidentow	Mazars & Guerard Audyt Sp z oo.	PKF Audit Sp. z o.o.	PKF Consult Sp. z o.o.
Auditor Opinion	Unqualified	Unqualified	Unqualified with Explanation	Unqualified with Explanation	Unqualified

Sales	130.8	117.3	131.2	209.5	148.9
Total Revenue	130.8	117.3	131.2	209.5	148.9

Cost of Sales	61.0	52.8	63.5	96.0	70.5
Selling Costs	46.8	42.8	52.9	79.4	55.3
General Management	14.5	14.3	16.1	24.7	16.3
Sale/Fixed Assets	-1.4	-0.2	-0.3	-0.8	-7.5
Othe Operating Income	-3.7	-2.7	-20.4	-3.0	-12.5
Cost/Sold Assets	0.0	-	-	-	-
Other Operating Expenses	5.1	2.6	6.4	67.3	5.6
Total Operating Expense	122.2	109.6	118.2	263.5	127.7

Interest Income/Loans	0.0	0.0	0.0	0.4	0.8
Gain/Loss on Sale of AfS Investment	0.3	0.0	-	-	-
FX Gains	-	0.1	-	-	-
Other Financial Income	0.7	0.1	0.6	1.6	1.4
Interest Expense	-7.1	-6.7	-7.6	-9.3	-1.0
FX Loss	-1.2	-	-	-	-
Other Financial Expense	-0.5	-0.7	-2.3	-4.6	-0.4
Result on Sale of Subsidiary	-0.2	-	-	0.0	1.1
Net Income Before Taxes	0.5	0.5	3.6	-65.9	23.1

Provision for Income Taxes	0.5	0.0	-1.9	0.3	1.9
Net Income After Taxes	0.0	0.6	5.4	-66.2	21.2

Net Income Before Extra. Items	0.0	0.6	5.4	-66.2	21.2
Net Income	0.0	0.6	5.4	-66.2	21.2

Income Available to Com Excl ExtraOrd	0.0	0.6	5.4	-66.2	21.2

Income Available to Com Incl ExtraOrd	0.0	0.6	5.4	-66.2	21.2

Basic Weighted Average Shares	112.7	112.7	104.7	82.0	80.9
Basic EPS Excluding ExtraOrdinary Items	0.00	0.00	0.05	-0.81	0.26
Basic EPS Including ExtraOrdinary Item	0.00	0.00	0.05	-0.81	0.26
Dilution Adjustment	-	-	-	0.0	-
Diluted Net Income	0.0	0.6	5.4	-66.2	21.2
Diluted Weighted Average Shares	120.8	120.8	114.0	82.0	80.9
Diluted EPS Excluding ExtraOrd Items	0.00	0.00	0.05	-0.81	0.26
Diluted EPS Including ExtraOrd Items	0.00	0.00	0.05	-0.81	0.26
DPS-Common Stock	0.00	0.00	0.00	0.00	0.00
Gross Dividends - Common Stock	0.0	0.0	0.0	0.0	0.0
Normalized Income Before Taxes	-0.7	0.4	3.3	-66.7	14.5

Inc Tax Ex Impact of Sp Items	0.1	-0.1	-1.9	0.0	1.2
Normalized Income After Taxes	-0.8	0.4	5.3	-66.7	13.3

Normalized Inc. Avail to Com.	-0.8	0.4	5.3	-66.7	13.3

Basic Normalized EPS	-0.01	0.00	0.05	-0.81	0.16
Diluted Normalized EPS	-0.01	0.00	0.05	-0.81	0.16
Depreciation	4.2	4.7	5.0	6.2	4.9
Amortization of Intangibles	0.4	0.5	0.6	0.7	0.3
Interest Expense	7.1	6.7	7.6	9.3	1.0
Current Tax	0.2	0.2	0.1	1.6	-
Current Tax - Total	0.2	0.2	0.1	1.6	-
Deferred Tax	0.3	-0.2	-1.9	-1.3	-
Deferred Tax - Total	0.3	-0.2	-1.9	-1.3	-
Income Tax - Total	0.5	0.0	-1.9	0.3	-

Annual Balance Sheet

Financials in: USD (mil)

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
UpdateType/Date	Restated Normal 30-Jun-2012	Updated Normal 31-Dec-2010	Reclassified Normal 31-Dec-2010	Restated Normal 31-Dec-2009	Restated Normal 31-Dec-2008
Filed Currency	PLN	PLN	PLN	PLN	PLN
Exchange Rate	3.43395	2.95445	2.8617	2.963	2.45935
Auditor	PRO AUDIT Kancelaria Bieglych Rewidentow	PRO AUDIT Kancelaria Bieglych Rewidentow	Mazars & Guerard Audyt Sp z oo.	PKF Audit Sp. z o.o.	PKF Consult Sp. z o.o.
Auditor Opinion	Unqualified	Unqualified	Unqualified with Explanation	Unqualified with Explanation	Unqualified

Materials	5.1	6.7	6.3	7.8	8.0
Work in Progress	0.6	1.1	1.6	3.0	2.5
Finished Goods	5.5	5.2	6.9	9.4	8.2
Merchandise Goods	32.8	37.4	39.7	58.8	42.2
Revaluation of Inventory	-0.9	-1.6	-3.0	-4.5	-7.7
Accounts Receivable/Other, Gross	-	13.1	13.9	17.5	20.1
Receivables/Affiliates, Gross	-	7.1	7.3	1.1	1.2
Provisions for Doubtful Accounts	-	-14.5	-15.9	-10.2	-11.8
Tax Receivables	-	0.1	0.1	2.7	-
Receivables/Affiliates	-	-	-	3.3	-
Accounts Receivable/Deliveries&Services	6.6	0.0	0.0	-	-
Accounts Receivable/Other	-	0.7	0.7	-	-
Other Receivables	-	-	-	-	3.9
ST Loans Receivable	0.0	0.0	0.1	0.1	0.2
Securities	-	-	-	0.3	0.0
Cash in Hand & in Bank & ST Deposits	-	1.9	2.2	4.5	-
ST Deposits	-	6.2	4.9	4.5	-
Cash and Equivalents	3.1	-	-	-	26.0
Other	0.2	0.3	0.1	1.4	0.8
Total Current Assets	52.9	63.8	64.9	99.8	93.6

Goodwill, Net	70.6	82.6	85.3	82.3	25.7
Intangibles	-	-	-	-	38.4
Goodwill	-	-	-	64.6	-
Intangibles Gross	38.6	45.2	46.6	-	-
Amortization	-3.8	-4.4	-4.0	-24.3	-
Impairment of Intangible Assets	-0.9	-1.1	-1.2	-	-
Land and Buildings	13.6	29.1	33.6	43.2	31.1
Equipment	-	22.8	30.8	47.2	49.2
Construction in Progress	-	0.3	0.4	1.9	4.3
Depreciation	-	-28.5	-34.7	-49.2	-49.6
Impairment of Tangible Assets	-	-1.2	-1.6	-	-
Investments/ Real Estate	2.9	0.3	0.3	0.3	0.0
Assets for Sale	0.0	1.7	0.0	0.0	0.7
Long Term Receivables	0.5	0.9	1.0	0.1	0.0
Financial Assets	1.9	0.1	0.1	0.1	0.1
Other LT Investments	0.0	0.0	0.0	0.0	0.0
Deferred Tax	5.0	5.9	5.9	3.7	3.0
Other Assets	0.0	0.0	0.0	1.0	0.2
Total Assets	181.3	217.6	227.5	270.7	196.6

ST Liabilities/Affiliates	-	0.0	0.0	0.0	-
Accounts Payable	20.2	12.2	13.7	27.4	-
Accounts Payable and Other Liabs.	-	-	-	-	43.2
Tax and Other State Duties	-	3.7	3.7	5.7	-
Other ST Liabilities	-	2.2	2.6	3.5	-
Bonds	14.6	16.9	0.0	-	-
ST Reserves	3.3	6.1	9.3	31.7	3.3
Leases	0.0	0.5	1.0	2.2	1.0
ST Loans	0.6	2.1	9.2	103.8	3.0
Current Portion of LT Debt	2.2	5.7	5.9	0.9	2.3
Total Current Liabilities	40.9	49.4	45.4	175.2	52.8

Financial Leases	0.0	0.1	0.6	7.8	2.9
LT Commitments	49.3	60.1	71.2	6.5	9.4
Total Long Term Debt	49.4	60.1	71.8	14.3	12.3

Other LT Liabs./Purchase of Fixed Assets	0.0	0.0	0.0	0.0	0.0
Deferred Income Tax	0.5	0.5	0.5	0.4	0.5
Other Reserves	4.4	5.8	5.9	0.3	0.3
Total Liabilities	95.2	115.7	123.7	190.3	65.9

Share Capital	7.1	8.3	8.6	7.7	7.4
Valuation Rsrv.	4.2	1.3	1.3	1.3	1.6
Other Profits	-0.3	2.7	2.0	1.1	0.8
Retained Profit	75.1	89.6	92.0	70.3	120.9
Total Equity	86.2	101.9	103.8	80.4	130.8

Total Liabilities & Shareholders' Equity	181.3	217.6	227.5	270.7	196.6

S/O-Common Stock	112.7	112.7	112.7	104.3	81.0
Total Common Shares Outstanding	112.7	112.7	112.7	104.3	81.0
Accumulated Intangible Amortization	4.7	5.5	5.1	3.7	2.9
Full-Time Employees	-	2,283	2,842	2,743	2,383
LT Debt Maturing within 1 Year	2.2	7.9	15.1	-	-
LT Debt Maturing over 1 Year	49.3	60.1	71.2	-	-
Total Long Term Debt, Supplemental	51.6	67.9	86.3	-	-
Capital Lease Payments Due within1 Year	-	0.0	0.0	0.0	0.3
Capital Lease Payments Due in Year 5	-	0.6	1.6	3.6	3.3
Capital Lease Remaining	-	0.0	0.0	6.4	0.3
Total Capital Leases	-	0.6	1.6	10.0	3.9

Annual Cash Flows

Financials in: USD (mil)

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Reclassified Normal 31-Dec-2010	Updated Normal 31-Dec-2008	Reclassified Normal 31-Dec-2008
Filed Currency	PLN	PLN	PLN	PLN	PLN
Exchange Rate (Period Average)	2.964349	3.017571	3.113934	2.409971	2.76483
Auditor	PRO AUDIT Kancelaria Bieglych Rewidentow	PRO AUDIT Kancelaria Bieglych Rewidentow	Mazars & Guerard Audyt Sp z oo.	PKF Audit Sp. z o.o.	PKF Consult Sp. z o.o.
Auditor Opinion	Unqualified	Unqualified	Unqualified with Explanation	Unqualified with Explanation	Unqualified

Net Income	0.0	0.6	5.4	-66.2	21.2
Depreciation	4.6	5.3	5.7	8.5	5.2
Foreign Exchange Differences	0.0	0.0	0.0	0.0	-0.3
Investments	-1.2	-0.2	-0.3	-0.9	-7.9
Interest/Dividends	7.1	6.8	7.4	7.9	0.9
Provisions	-2.3	-2.9	-16.3	22.2	1.2
Inventories	-6.2	0.9	22.5	-37.3	-20.8
Receivables	-1.7	-1.0	8.3	-4.7	-1.3
ST Liabilities (Excl. Loans and Credits)	7.4	0.4	-15.6	29.5	19.3
Adjustment	0.7	0.6	-0.4	35.0	-16.4
Income Tax Paid	0.0	-0.2	0.0	-7.4	-0.5
Interest Paid	-7.1	-6.8	-7.4	-8.3	-0.9
Adjustment	-	-	-	12.4	-
Cash from Operating Activities	1.3	3.5	9.2	-9.2	-0.3

Sale of Fixed Assets	3.7	0.5	1.3	13.3	5.9
Sale of Business	0.2	0.0	0.0	0.0	0.0
Sale of Assets Held for Trading	0.0	0.0	0.0	0.0	0.0
Dividends Received	0.0	0.0	0.0	0.0	0.0
Interest Received	0.0	0.0	0.0	0.4	0.6
Loans Repayment	0.0	0.1	0.1	0.0	0.0
Purch./Intangibles	-0.1	0.0	-1.2	-1.2	-0.2
Purch./Fixed Assets	-3.6	-3.1	-5.2	-16.9	-13.2
Purchase of Investment Held for Sale	0.0	0.0	0.0	0.7	0.0
Purchase of Subsidiary	0.0	0.0	0.0	-122.5	0.0
Purchase of Real Estate Investment	0.0	0.0	0.0	0.0	-
Purch./Fin.Assets/Affiliates	0.0	0.0	0.0	0.0	0.0
Purch./Fin.Assets	0.0	0.0	0.0	-0.4	0.0
Loans Expenses	-	0.0	0.0	0.0	0.0
Sale of Subsidiary	-0.1	-	-	-	-
Cash from Investing Activities	0.1	-2.4	-5.0	-126.6	-6.9

Shares Issued/Additional Paid in Capital	0.0	16.6	11.7	19.0	1.5
Credits/Loans Issued	5.1	0.9	3.3	130.2	2.6
Repayments of Loans	-10.0	-16.5	-20.3	-23.9	-2.1
Financial Lease Payments	-0.5	-0.9	-1.0	-5.0	-0.9
Cash from Financing Activities	-5.4	0.1	-6.2	120.3	1.2

Foreign Exchange Effects	-	-	0.0	0.0	0.0
Net Change in Cash	-4.0	1.2	-2.0	-15.4	-6.0

Net Cash - Beginning Balance	8.1	6.8	8.5	26.5	29.2
Net Cash - Ending Balance	4.0	7.9	6.6	11.0	23.1
Cash Interest Paid	7.1	6.8	7.4	8.3	0.9
Cash Taxes Paid	0.0	0.2	0.0	7.4	0.5

Financial Health

Financials in: USD (mil)
Except for share items (millions) and per share items (actual units)

Key IndicatorsÂ USD (mil)
Â	Quarter Ending 30-Sep-2012	Quarter Ending Yr Ago	Annual Year End 31-Dec-2011	1 Year Growth	3 Year Growth	5 Year Growth
Total Revenue1 (?)	27.1	0.57%	130.8	9.55%	-8.43%	16.48%
Operating Income1 (?)	0.0	-	8.5	8.87%	-	29.97%
Income Available to Common Excl Extraord Items1 (?)	0.4	-	0.0	-99.64%	-	-75.00%
Basic EPS Excl Extraord Items1 (?)	0.00	-	0.00	-99.32%	-	-75.20%
Capital Expenditures2 (?)	1.8	-32.94%	3.8	19.95%	-36.63%	-5.16%
Cash from Operating Activities2 (?)	-7.9	-	1.3	-63.53%	-	-
Free Cash Flow (?)	-10.1	-	-2.1	-	-	-
Total Assets3 (?)	197.2	-1.05%	181.3	-3.15%	-8.09%	12.40%
Total Liabilities3 (?)	95.5	-11.46%	95.2	-4.42%	-16.62%	29.37%
Total Long Term Debt3 (?)	47.9	37.60%	49.4	-4.60%	58.56%	54.17%
Total Common Shares Outstanding3 (?)	133.9	18.80%	112.7	0.00%	2.59%	7.19%
1-ExchangeRate: PLN to USD Average for Period	3.321560	Â	2.964349	Â	Â	Â
2-ExchangeRate: PLN to USD Average for Period	3.290191	Â	2.964349	Â	Â	Â
3-ExchangeRate: PLN to USD Period End Date	3.191372	Â	3.433950	Â	Â	Â

Key Ratios
Â	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Profitability
Gross Margin (?)	53.39%	55.00%	51.55%	54.20%	52.66%
Operating Margin (?)	6.53%	6.57%	9.85%	-25.80%	14.24%
Pretax Margin (?)	0.38%	0.44%	2.72%	-31.45%	15.49%
Net Profit Margin (?)	0.00%	0.47%	4.14%	-31.58%	14.22%
Financial Strength
Current Ratio (?)	1.29	1.29	1.43	0.57	1.77
Long Term Debt/Equity (?)	0.57	0.59	0.69	0.18	0.09
Total Debt/Equity (?)	0.78	0.84	0.85	1.51	0.14
Management Effectiveness
Return on Assets (?)	0.00%	0.26%	2.33%	-24.80%	14.09%
Return on Equity (?)	0.00%	0.56%	6.31%	-56.96%	20.24%
Efficiency
Receivables Turnover (?)	18.46	19.13	13.55	13.31	13.00
Inventory Turnover (?)	1.24	1.09	1.08	1.32	1.91
Asset Turnover (?)	0.61	0.55	0.56	0.79	0.99

Market ValuationÂ USD (mil)
P/E (TTM) (?)	9.31	.	Enterprise Value2 (?)	116.6
Price/Sales (TTM) (?)	0.38	.	Enterprise Value/Revenue (TTM) (?)	0.93
Price/Book (MRQ) (?)	0.47	.	Enterprise Value/EBITDA (TTM) (?)	8.85
Market Cap as of 15-Feb-20131 (?)	48.3	.
1-ExchangeRate: PLN to USD on 15-Feb-2013	3.132490
2-ExchangeRate: PLN to USD on 30-Sep-2012	3.191372

Annual Ratios

Financials in: USD (mil)
Except for share items (millions) and per share items (actual units)

	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008	31-Dec-2007
Financial Strength
Current Ratio (?)	1.29	1.29	1.43	0.57	1.77
Quick/Acid Test Ratio (?)	0.24	0.30	0.29	0.14	0.75
Working Capital1 (?)	12.0	14.5	19.5	-75.5	40.8
Long Term Debt/Equity (?)	0.57	0.59	0.69	0.18	0.09
Total Debt/Equity (?)	0.78	0.84	0.85	1.51	0.14
Long Term Debt/Total Capital (?)	0.32	0.32	0.37	0.07	0.08
Total Debt/Total Capital (?)	0.44	0.46	0.46	0.60	0.12
Payout Ratio (?)	0.00%	0.00%	0.00%	0.00%	0.00%
Effective Tax Rate (?)	99.59%	-6.74%	-52.10%	-	8.22%
Total Capital1 (?)	153.0	187.3	191.7	201.7	149.4

Efficiency
Asset Turnover (?)	0.61	0.55	0.56	0.79	0.99
Inventory Turnover (?)	1.24	1.09	1.08	1.32	1.91
Days In Inventory (?)	295.12	333.98	339.33	277.48	191.04
Receivables Turnover (?)	18.46	19.13	13.55	13.31	13.00
Days Receivables Outstanding (?)	19.78	19.08	26.93	27.43	28.07
Revenue/Employee2 (?)	-	52,472	50,216	62,119	70,238
Operating Income/Employee2 (?)	-	3,449	4,946	-16,028	10,002
EBITDA/Employee2 (?)	-	5,812	7,115	-13,976	12,454

Profitability
Gross Margin (?)	53.39%	55.00%	51.55%	54.20%	52.66%
Operating Margin (?)	6.53%	6.57%	9.85%	-25.80%	14.24%
EBITDA Margin (?)	10.09%	11.08%	14.17%	-22.50%	17.73%
EBIT Margin (?)	6.53%	6.57%	9.85%	-25.80%	14.24%
Pretax Margin (?)	0.38%	0.44%	2.72%	-31.45%	15.49%
Net Profit Margin (?)	0.00%	0.47%	4.14%	-31.58%	14.22%
COGS/Revenue (?)	46.61%	45.00%	48.45%	45.80%	47.34%
SG&A Expense/Revenue (?)	46.83%	48.71%	52.60%	49.71%	48.09%

Management Effectiveness
Return on Assets (?)	0.00%	0.26%	2.33%	-24.80%	14.09%
Return on Equity (?)	0.00%	0.56%	6.31%	-56.96%	20.24%

Valuation
Free Cash Flow/Share2 (?)	-0.02	0.00	0.03	-0.21	-0.19
Operating Cash Flow/Share 2 (?)	0.01	0.03	0.09	-0.07	0.00
1-ExchangeRate: PLN to USD Period End Date	3.43395	2.95445	2.8617	2.963	2.45935
2-ExchangeRate: PLN to USD Average for Period	3.43395	2.95445	2.8617	2.963	2.45935

Current Market Multiples
Market Cap/Earnings (TTM) (?)	9.31
Market Cap/Equity (MRQ) (?)	0.47
Market Cap/Revenue (TTM) (?)	0.38
Market Cap/EBIT (TTM) (?)	5.02
Market Cap/EBITDA (TTM) (?)	3.60
Enterprise Value/Earnings (TTM) (?)	22.90
Enterprise Value/Equity (MRQ) (?)	1.15
Enterprise Value/Revenue (TTM) (?)	0.93
Enterprise Value/EBIT (TTM) (?)	12.36
Enterprise Value/EBITDA (TTM) (?)	8.85

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.77
UK Pound	1	Rs.81.57
Euro	1	Rs.70.68

INFORMATION DETAILS

Report Prepared by :

PRL

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

MIRA INFORM REPORT

Company name and address Top of Form

Corporate Overview

Executives Report

Significant Developments

Annual Income Statement

Financial Health

Unit