Exhibit 99.1

 

 

 

 

 

Auditor’s Report

 

on the financial statements for the period

from 1^st January 2014 to 31^st December 2014

 

 

MICONEX s.r.o.

 

Auditor:	Moores Rowland CA s.r.o.
	Štěpánská 11/538, 120 00  Praha 2
	the Czech Republic
	Licence No. 388

 

 

 

 

 

General information
Company Name:	MICONEX s.r.o.
Registered address:	V Horkách 76, 460 07  Liberec 9
Company identification number:	24 14 05 03
Legal form:	limited liability company
Main activities:	assembly & manufacturing services for capital equipment manufacturers across many industries
Recipient of the report:	Stenen one a.s.
	owner and executive of the company
	Juves one a.s.
	owner and executive of the company
Auditor:	Moores Rowland CA s.r.o.
	Štěpánská 11/538, 120 00  Praha 2
	registered with the Chamber of Auditors of
	the Czech Republic – licence No. 388
Responsible manager:	Pavlína Sedláková
	Auditor registered with the Chamber of
	Auditors of the Czech Republic, licence No.1864
Date of issue:	March 12, 2015

 

 

 

 

 

Independent Auditor´s Report

 

We have audited the accompanying financial statements in English language of MICONEX s.r.o., which comprise the balance sheet as of 31 December 2014, and the profit and loss statement, statement of changes in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes. Information about MICONEX s.r.o. is presented in Chapter 1. of the notes to these financial statements.

 

Statutory Body’s Responsibility for the Financial Statements

 

The statutory body of MICONEX s.r.o. is responsible for the preparation of financial statements that give a true and fair view in accordance with Czech accounting regulations and for such internal control as statutory body determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

 

Auditor’s Responsibility

 

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Act on Auditors and International Standards on Auditing and the related application guidelines issued by the Chamber of Auditors of the Czech Republic. Those laws and regulations require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

 

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

 

Opinion

 

In our opinion, the financial statements give a true and fair view of the financial position of MICONEX s.r.o. as of 31 December 2014, and of its financial performance and its cash flows for the year then ended in accordance with the Czech accounting regulations.

 

 

 

Praha, March 12, 2015

 

 

On behalf of Moores Rowland CA s.r.o.

 

/s/ Pavlína Sedláková

Pavlína Sedláková

auditor and partner

 

 

Balance Sheet as of 31.12.2014

 

MICONEX s.r.o.

 

Liberec, V Horkách 76, PSC 46007

 

ID 241 40 503
registered with the Commercial Register maintained by the Regional Court in Ûstí nad Labem, Section C, file 30864

 

 

									In thousands of CZK
					Current period (balances as of 31.12.2014)												Previous period as of
					Gross				Adjustments				Net				31.12.2013
Total Assets					313 407				29 813				283 594				229 692
B.		Fixed assets			75 555				26 382				49 173				28 003
B.I.		Intangible assets			5 514				3 578				1 936				1 644
B.I.3		Software			5 514				3 578				1 936				1 266
B.I.7		Intangible assets in the course of development			-				-				-				378
B.II.		Tangible fixed assets			48 816				22 804				26 012				26 134
B.II.1		Land			-				-				-				-
B.II.2		Buildings			-				-				-				-
B.II.3		Equipment and vehicles			28 885				18 929				9 956				8 750
B.II.7		Tangible fixed assets under construction			-				-				-				-
B.II.9		Measurement difference to acquired assets			19 931				3 875				16 056				17 384
B.III.		Long-term financial assets			21 225				-				21 225				225
B.III.1		Shares subsidiaries			21 225				-				21 225				225
C.		Current assets			221 852				3 431				218 421				201 222
C.I.		Inventories			127 886				1 530				126 356				96 230
C.l.1		Raw materials			87 578				1 530				86 048				66 462
C.l.2		Work In progress			40 308				-				40 308				29 768
C.II.		Long-term receivables			1 859				-				1 859				25 698
C.II.2		Receivables from controlled or controlling entity			-				-				-				21 001
C.ll.7		Other receivables			1 104				-				1 104				855
C.ll.8		Deferred tax assets			755				-				755				3 842
C.Ill.		Short-term receivables			89 993				1 901				88 092				75 563
C.lll.1		Trade receivables			80 620				1 901				78 719				66 900
C.lll.6		Tax receivables			4 424				-				4 424				7 110
C.lll.7		Short-term advances given			2 086				-				2 086				691
C.lll.8		Estimates			-				-				-				279
C.lll.9		Other accounts receivable			2 863				-				2 863				583
C.IV.		Cash and cash equivalents			2 114				-				2 114				3 731
C.IV.1		Cash In hand			145				-				145				137
C.IV.2		Bank balances			1 969				-				1 969				3 594
D.		Accruals			16 000				-				16 000				467
D.I.		Deferred items			16 000				-				16 000				467
D.I.1		Prepaid expenses			590				-				590				360
D.I.3		Deferred income			15 410				-				15 410				107
Total Equity and Liabilities					-				-				283 594				229 692
A.		Owner’s Equity			-				-				58 173				-4 907
A.I.		Registered capital			-				-				200				200
A.I.1		Registered capital			-				-				200				200
A.III.		Statutory funds			-				-				10				10
A.III.1		Reserve fund			-				-				10				10
A.IV.		Retained earnings			-				-				-5 117				16 156
A.IV.1		Retained earnings from previous periods			-				-				16 156				16 156
A.IV.2		Accumulated losses from previous periods			-				-				-21 273				-
A.V.1.		Profit/Loss for the current period (+/-)			-				-				63 080				-21 273
B.		Liabilities			-				-				225 190				234 444
B.I.		Provisions			-				-				13 566				1 607
B.I.3		Provision for current corporate income tax			-				-				11 305				-
B.I.4		Other provisions			-				-				2 261				1 607
B.II.		Long-term payables			-				-				80				175
B.II.9		Other payables			-				-				80				175
B.III.		Short-term payables			-				-				85 265				112 928
B.III.1		Trade payables			-				-				62 562				52 925
B.III.2		Payables to controlling or controlled entity			-				-				268				-
B.III.4		Payables to owners			-				-				9 680				12 000
B.III.5		Payables to employees			-				-				4 806				6 997
B.III.6		Social security and health insurance payables			-				-				2 774				2 796
B.III.7		Taxes and government payables			-				-				667				1 542
B.III.10		Estimates			-				-				1 405				1 256
B.III.11		Other payables			-				-				3 103				35 412
B.IV.		Bank loans and borrowings			-				-				126 279				119 734
B.IV.1		Long-term bank loans			-				-				17 981				19 942
B.IV.2		Short-term bank loans			-				-				108 298				99 792
C.		Accruals			-				-				231				155
C.I.		Deferred items			-				-				231				155
C.I.1		Accrued expenditures			-				-				231				155

Profit and Loss Statement for the period from 1.1.2014 to 31.12.2014

 

MICONEX s.r.o.

 

Liberec, V Horkách 76, PSC 46007

 

ID 241 40 503
registered with the Commercial Register maintained by the Regional Court in Ûstí nad Labem, Section C, file 30864

 

In thousands of CZK

		Period from 1.1.2014 to 31.12.2014	Period from 1.1.2013 to 31.12.2013
II.	Production revenue	733 703	791 393
	II.1 Sales of own products and services	723 162	796 975
	II.2 Change in own produced inventories	10 541	-5 582
B.	Production costs	531 689	592 864
	B.1 Raw materials and energy consumption	458 557	498 263
	B.2 Services	73 132	94 601
+	Added value	202 014	198 529
C.	Personnel expenses	122 914	123 781
	C.1 Salaries and wages	69 519	87 738
	C.2 Remuneration of executives	27 721	12 312
	C.3 Social security and health insurance	23 427	22 056
	C.4 Other personnel expenses	2 247	1 675
D.	Taxes and fees	893	108
E.	Depreciation and amortisation	6 079	6 420
Ill.	Sales of fixed assets and raw materials	26 252	56 630
	III.1 Sales of fixed assets	856	21 000
	III.2 Sales of raw materials	25 396	35 630
F.	Net book value of fixed assets and raw materials sold	24 791	103 505
	F.1 Net book value of fixed assets sold	729	68 432
	F.2 Cost of raw materials sold	24 062	35 073
G.	Change in operating provisions and adjustments and complex deferred expenses	2 555	3 140
IV.	Other operating revenue	1 361	1 174
H.	Other operating expenses	1 711	1 284
*	Profit/Loss from operating activities	70 684	18 095
IX.	Gains on revaluation of securities and derivatives	32 408	-
L.	Expenses arisen on revaluation of securities and derivatives	-	35 232
X.	Interest income	3	82
N.	Interest expense	2 310	2 826
XI.	Other financial gains	22 903	26 168
O.	Other financial expense	43 934	31 039
*	Profit/Loss from financial operations	9 070	-42 847

Q.	Corporate Income tax on operations	16 674	-3 479
Q.1	due	13 587	28
Q.2	deferred	3 087	-3507
**	Profit/loss for the period from ordinary activities	63 080	-21 273
***	Profit/Loss for the period	63 080	-21 273
****	Profit/Loss for the period before taxation	79 754	-24 752

Statement of cash flows for the period from 1.1.2014 to 31.12.2014

 

MICONEX s.r.o.

 

Liberec, V Horkách 76, PSC 46007

 

ID 24 140 503
registered with the Commercial Register maintained by the Regional Court in Ústí nad Labem, Section C, file 30864

 

In thousands of CZK
		Period from 1.1.2014 to 31.12.2014				Period from 1.1.2013 to 31.12.2013
Cash flows from operating activities:
Net income			63 080				-21 273
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			7 407				7 749
Change in adjustments for bad debts			574				1 062
Change in fair value of derivatives and effect of FX rates on cash			-32 424				35 242
Gain on sale of fixed assets			-127				47 432
Changes in assets and liabilities:
Accounts receivable			-5 576				-39 687
Inventory			-30 502				-14 104
Prepaids and other			-1 625				-379
Deferred income taxes			3 087				-3 507
Accounts payable			-4 932				2 738
Income taxes payable			11 305				-4 537
Change in provisions and other liabilities			654				749
Net cash provided by operating activities			10 921				11 485
Cash flows from investing activities:
Acquisition of Marchi
Purchases of equipment and leasehold improvements			-28 955				-15 671
Proceeds from the sale of fixed assets			21 856				-
Net cash used in investing activities			-7 099				-15 671
Cash flows from financing activities:
Proceeds from term debt and revolving credit facility			19 629				21 864
Principal payments on term debt and revolving credit facility			-25 084				-17 997
Net cash provided in financing activities			-5 455				3 867
Net increase (decrease) in cash			-1 633				-319
Cash and cash equivalents at beginning of period			3 731				4 060
Effect of foreign exchange rates on cash and cash equivalents			16				-10
Cash and cash equivalents at end of period			2 114				3 731
Supplemental items:
Cash paid during the  period:
Income taxes paid			-2 282				-6 847
Income tax refunds			2 282				-
Interest			-2 310				2 874

Statement of changes in equity for the period from 1.1.2014 to 31.12.2014

 

MICONEX s.r.o.

 

Liberec, V Horkách 76, PSC 46007

 

ID 241 40 503

registered with the Commercial Register maintained by the Regional Court in Ústí nad Labem, Section C, file 30864

 

In thousands of CZK
		Share capital				Statutory reserve				Retained earnings				Total equity
Opening balance as of 1st January 2013			200				-				16 166				16 166
Transfer into the statutory reserve fund			-				10				-10				-
Profit for the period			-				-				-21 273				-21273
Balance as of 31st December 2013			200				10				-5 117				-4 907
Opening balance as of 1st January 2014			200				10				-5 117				-4 907
Profit for the period			-				-				63 080				63 080
Balance as of 31st December 2014			200				10				57 963				58 173

 

 

 

Notes to 2014 audited financial statements

 

 

 

 

 

 

 

1.	Description and principal activities

 

MICONEX s.r.o. (“the Company") was registered on 22 July 2011 in the Trade Register. The main manufacturing program is a production of chemical modules for semi-conductor industry.

 

The owner of the Company as of 31 December 2014:

 

Juves one a.s.     contribution into registered capital CZK 100,000      share 50% entered on 26.5.2014

Stenen one a.s.     contribution into registered capital CZK 100,000      share 50% entered on 26.5.2014

 

Registered seat:

 

MICONEX s.r.o.

V Horkách 76

460 07 Liberec 9

Czech Republic

 

Identification number:

 

24 14 05 03

 

Statutory representatives as of 31 December 2014:

 

Juves one a.s.-  statutory representative	entered on 27.8.2014
Stenen one a.s - statutory representative	entered on 27.8.2014
FiveProM a.s. - statutory representative	entered on 27.8.2014

 

CEO’s decisions are regulated by statutory representatives.

 

CEO manages 2 divisions and 6 departments.

 

2.

Significant accounting policies applied by the Company

 

 

 

(a)

Tangible and intangible fixed assets

 

Tangible and intangible fixed assets are initially measured at their purchase price. Tangible fixed assets purchased for less than TCZK 2 and intangible fixed assets purchased for less than TCZK 2 are not disclosed in the balance sheet and are treated directly within expenses in the year when they are acquired.

  

Depreciation is provided using the following methods and over the periods stated:

 

Asset	Method	Period
Building	Straight-line	30 years
Machines and equipment	Straight-line	4 - 20 years
Cars	Straight-line	4 years
Software	Straight-line	2 - 4 years

 

(b)

Long-term investments

 

Long-term investments comprise investments in group undertakings and in associated companies and are initially accounted for at cost, which includes costs directly incurred in connection with the acquisition, such as fees and commissions paid to brokers, advisors and stock exchanges.

 

(c)

Inventories

 

Raw materials inventory is recognized at cost. Cost includes the purchase price of the inventory and related customs duties and in-transit storage and freight costs incurred to deliver the inventory to the manufacturing facility. The cost is determined using the first-in, first-out method.

 

Work in progress and finished goods inventories are recognized at cost, which includes the cost of direct materials, direct labor and an allocation of the manufacturing overhead proportionate to the stage of completion of the inventory. The cost of work-in-progress and finished products is determined using first-in, first-out method.

 

(d)

Adjustment and provisions

 

Accounts receivable

 

The Company calculates adjustments for bad debts based on an analysis of the credibility of customers and ageing structure of receivables. 

 

 

Inventories

 

Company recognizes provisions for non-moving inventory based on individual analysis of potential utilization of such inventory and according to ageing structure. The value of inventory without movement for the period longer than 2 years is decreased by 100% adjustment.

 

Provisions

 

A provision for untaken holiday is created as at the balance sheet date based on an analysis of untaken holiday in 2014 and average payroll expenses including social security and health insurance expenses per employee.

 

An income tax provision is necessary as the financial statements are prepared before the current year tax liability is exactly determined. In the subsequent accounting period the Company releases this provision and recognizes the actual tax liability determined.

  

Provision for risks and guarantees is based on value of delivered products which are still under guarantee period, according to contracted guarantee period and also warranty expenses incurred in current period are considered.

 

(e)

Foreign currency translation

 

At the beginning of each month, the Company determines the fixed rate for foreign currency transactions based on the Czech National Bank official FX rate effective on the last working day of the previous month to be applied to transactions occurred during current month.

 

At the balance sheet date, foreign currency monetary assets and liabilities are translated at the Czech National Bank official foreign exchange rates effective for that date. Unrealized foreign exchange gains and losses are recognized in the profit and loss account.

  

(f)

Derivatives

 

Trading derivatives

 

Financial derivatives held for trading are carried at fair value and gains (losses) from changes in the fair value are recognized in the profit and loss account.

 

(g)

Taxation

 

Corporate income tax on the profit for the year comprises current income tax and the change in deferred tax.

 

Current income tax comprises tax payable estimate calculated on the basis of the expected taxable income for the year, using the tax rate valid as at the balance sheet date and any adjustment to the tax payable for previous years.

 

 

Deferred tax is calculated on all temporary differences between the carrying amounts of assets and liabilities and their tax value including other temporary differences (tax loss brought forward) multiplied by the income tax rate prescribed by the Income Tax Act for the next period.

 

A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which this asset can be utilized.

 

3.

Fixed assets

 

a. Intangible fixed assets

 

	Software	Assets under construction	Total
Acquisition cost
Balance at 1.1.2014	4 700	378	5 078
Additions	1 570	-	1 570
Disposals	-756	-378	-1 134
Balance at 31.12.2014	5 514	-	5 514
Accumulated depreciation
Balance at 1.1.2014	-3 434	-	-3 434
Depreciation	-900	-	-900
Accumulated depreciation of disposed assets	756	-	756
Balance at 31.12.2014	-3 578	-	-3 578
Net book value 1.1.2014	1 266	378	1 644
Net book value 31.12.2014	1 936	-	1 936

 

 

 

 

b.

Tangible fixed assets

 

		Lands				Buildings				Machines and equipment				Assets under constr.				Measurement difference to acquired assets				Total
Acquisition cost
Balance at 1.1.2014			-				-				23 991				-				19 931				43 922
Additions							-				7 113				-				-				7 113
Disposals			-				-				-2 219				-				-				-2 219
Balance at 31.12.2014			-				-				28 885				-				19 931				48 816
Accumulated depreciation
Balance at 1.1.2014			-				-				-15 241				-				-2 547				-17 788
Depreciation			-				-				-5 178				-				-1 328				-6 506
Accumulated depreciation of disposed assets			-				-				1 490				-				-				1 490
Balance at 31.12.2014			-				-				-18 929				-				-3 875				-22 804
Net book value 1.1.2014			-				-				8 750				-				17 384				26 134
Net book value 31.12.2014			-				-				9 956				-				16 056				26 012

 

 

 

 

 

4.

Leased assets

 

Company does not enter into any financial or operative lease relationship.

  

5.

Off balance sheet tangible and intangible fixed assets

 

In accordance with the accounting policy described in note 2(a) above, the Company has treated any tangible and intangible fixed assets directly into expenses in the year that they were acquired. The cumulative acquisition cost of those assets which were still in use was as follows:

 

	2014	2013
Tangible and intangible fixed assets	413	329
Total	413	329

 

 

 

6.

Investments

 

2014 Shares in subsidiaries
	% of ownership	Acquisition cost	Adjustment	Book value as of 31.12.2014
MICONEX real estate s.r.o.	100%	21 225	-	21 225
		21 225	-	21 225

 

MICONEX real estate s.r.o.

V Horkách 76 

460 07 Liberec 9 

Česká republika

 

The total amount of shareholder’s equity of company MICONEX real estate s.r.o. as of 31.12.2013 (the last period for which the financial statements have been already approved) is 425 TCZK. Profit of MICONEX real estate s.r.o. for 2013 was disclosed in total amount of 225 TCZK.

 

Statutory representatives of company MICONEX real estate s.r.o. approved additional monetary contribution into equity in total amount 21 million Czech crowns. Additional contribution was given by settlement of mutual receivables and liabilities between company and its shareholder.

  

7.

Trade receivables and payables

  

a) The total amount of short-term trade receivables is 80 620 TCZK (2013 – 68 603 TCZK), of which 44 037 TCZK (2013 – 38 296 TCZK) is overdue. An adjustment for bad debts of 1 901 TCZK (2013 – 1 703 TCZK) has been made to decrease the value of receivables which may be uncollectible.

 

b) The total amount of short-term trade accounts payable is 62 562 TCZK (2013 – 52 925 TCZK), of which 515 TCZK (2013 – 10 715 TCZK) is overdue.

  

8.

Derivatives

 

At the balance sheet date the Company held the following financial derivatives for trading:

 

Forward exchange contracts	Due date (expiry)	2014  Fair value
Forward  317 500 thousand JPY	16.6.2014 – 30.1.2015	-8 697
Forward      3 370 thousand USD	6.6.2014 – 30.1.2015	6 172
Interest swap 504 thousand EUR	30.6.2014 – 30.6.2019	-299
Total		-2 824

 

 

 

As at 31 December 2014, the Company held trading derivatives whose nominal value was 5 557 thousand EUR.

 

9.

Adjustments

 

	Intangible assets	Financial assets	Inventory	Receivables	Total
Balance at 1.1.2014	-	-	1 154	1 703	2 857
Additions	-	-	376	198	574
Release/Consumption	-	-	-	-	-
Balance at 31.12.2014	-	-	1 530	1 901	3 431

 

 

10.

Registered capital

 

	Registered capital	Total
Balance at 1.1.2014	200	200
Changes in 2014	-	-
Balance 31.12.2014	200	200

 

 

 

 

11.

Changes in equity

 

(a) Changes in the individual components of equity:

		Registered capital				Statutory reserve fund				Other capital funds				Revaluation of assets and liabilities				Profit (loss) for the current period				Retained earnings				Retained losses				Total
Balance 1.1.2014			200				10				-				-				-21 273				16 156				-				-4 907
Increase of registered capital			-				-				-				-				-				-				-				-
Deferred tax of previous years			-				-				-				-				-				-				-				-
Additions to funds			-				-				-				-				-				-				-				-
Reductions of funds			-				-				-				-				-				-				-				-
Transfer of retained losses			-				-				-				-				21 273				-				-21 273				-
Changes in valuation differences from revaluation			-				-				-				-				-				-				-				-
Profit for  2014			-				-				-				-				63 080				-				-				63 080
Balance 31.12.2014			200				10				-				-				63 080				16 156				-21 273				58 173

 

  

 

(b) Suggested profit distribution and transfers to funds:

 

Current year profit			63 080
Transfer to statutory reserve fund			-
Settlement of 2013 loss			21 273
Retained earnings			41 807

 

12.

Provisions

 

		Provision for unpaid holiday				Provision for bonuses				Provision for risks and guarantees				Other provisions				Total
Balance 1.1.2014			925				-				462				220				1 607
Consumption			925				-				462				220				1 607
Additions			768				536				737				220				1 945
Balance 31.12.2014			768				536				737				220				2 261

 

 

 

 

13.

Bank loans

 

	Due date	Instalments	Interest rate	Balance at 31.12.2014	Due within 1 year	Due within 1-5 years	Due in period more than 5 years
Loan A in CZK	31.05.2015	-	EURIBOR+ 1,3% p.a.	102 605	102 605	-	-
Loan B in CZK	31.03.2020	317 TCZK monthly	EURIBOR   +2,3% p.a.	19 962	3 804	15 216	942
Loan C in CZK	31.05.2017	8 TCZK monthly	+ 4,7 % p.a.	215	115	100	-
Loan D in CZK	31.01.2016	19 TCZK monthly	+ 4,7 % p.a	380	186	194	-
Loan E in CZK	30.11.2015	7 TCZK monthly	6,5% p.a.	93	93	-	-
Loan F in CZK	30.11.2016	14 TCZK monthly	4,55% p.a.	250	147	103	-
Loan G in CZK	31.08.2015	10 TCZK monthly	2,4% p.a.	85	85	-	-
Loan H in CZK	14.11.2016	28 TCZK monthly	6,5% p.a.	400	220	180	-
Loan I in CZK	31.03.2015	5 TCZK monthly	6,2% p.a.	18	18	-	-
Loan J in CZK	31.03.2015	5 TCZK monthly	6,2% p.a.	18	18	-	-
Loan K in CZK	31.03.2018	45 TCZK monthly	4,5 % p.a.	1 061	458	603	-
Loan L in CZK	31.03.2018	45 TCZK monthly	4,5 % p.a.	1 100	457	643	-
Loan M in CZK	31.03.2015	7 TCZK monthly	6,2% p.a	22	22	-	-
Loan N v CZK	31.03.2015	7 TCZK monthly	6,2% p.a.	22	22	-	-
Loan O in CZK	31.05.2015	8 TCZK monthly	10,5% p.a.	48	48	-	-

14.

Pledges and guarantees

 

	Due date		Interest rate	Balance 31.12.2014
Loan A in CZK	31.05.2015	Real-estate, receivables, inventories, bill of exchange	EURIBOR+ 1,3 % p.a.	102 605
Loan B in CZK	31.03.2020	Real-estate, receivables, inventories, bill of exchange	EURIBOR +2,30% p.a.	19 962
Loan C in CZK	31.05.2017	Asset ownership transfer	+ 4,7 % p.a.	215
Loan D in CZK	31.01.2016	Asset ownership transfer	+ 4,7 % p.a	380
Loan E in CZK	30.11.2015	Asset ownership transfer	6,5% p.a.	93
Loan F in CZK	30.11.2016	Asset ownership transfer	4,55% p.a.	250
Loan G in CZK	31.08.2015	Asset ownership transfer	2,4% p.a.	85

 

Loan H in CZK	14.11.2016	Asset ownership transfer	6,5% p.a.	400
Loan I in CZK	31.03.2015	Asset ownership transfer	6,2% p.a.	18
Loan J in CZK	31.03.2015	Asset ownership transfer	6,2% p.a.	18
Loan K in CZK	31.03.2018	Asset ownership transfer	4,5 % p.a.	1 061
Loan L in CZK	31.03.2018	Asset ownership transfer	4,5 % p.a.	1 100
Loan M in CZK	31.03.2015	Asset ownership transfer	6,2% p.a	22
Loan N in CZK	31.03.2015	Asset ownership transfer	6,2% p.a.	22
Loan O in CZK	31.05.2015	Asset ownership transfer	10,5% p.a.	48

 

15.

Segment information - revenue

 

					Sales
						domestic				Europe				America				Total
Products and services			2014				2 197				720 965				-				723 162
			2013				4 445				792 530				-				796 975
Total			2014				2 197				720 965				-				723 162
			2013				4 445				792 530				-				796 975

 

16.

Related parties

 

a.

Trade receivables and payables – Payables 9 948 TCZK

 

b.

Sales and purchases – Purchases 29 279 TCZK.

  

 

 

17.

Employees and executives

 

The average number of employees and executives and remuneration paid for the years 2013 and 2014

 

2014	Number of employees	Wages and salaries	Social security and health insurance expenses	Social expenses
Employees	215	62 707	21 131	2 115
Managers	11	6 812	2 296	132
Total	226	69 519	23 427	2 247

 

2013	Number of employees	Wages and salaries	Social security and health insurance expenses	Social expenses
Employees	172	78 087	19 630	1 527
Managers	13	9 651	2 426	148
Total	185	87 738	22 056	1 675

 

Company paid 1.281 TCZK as the costs charged by employing agency in 2014 (2013 - 12.312 TCZK). Company paid remuneration to its statutory representatives of 26.440 TCZK in 2014.

 

18.

Tax liabilities and subsidies

 

Liability to government is 667 TCZK (2013 – 1 542 TCZK) and represents payable for income tax on employee salaries.

 

Social security and health insurance payable is in total amount of 2 774 TCZK (2013 – 2 796 TCZK).

 

Tax payables 0 TCZK (2013 – 0 TCZK).

 

Company received government grants in total amount of 715 TCZK in 2014 (2013 – 834 TCZK).

 

a.

Provision for corporate income tax comprises of 13 587 TCZK (2013 – 0 TCZK) is recognized under the item B.I.3 within Liabilities in Balance Sheet. This amount is decreased by the amount of advances paid for this corporate income tax in 2014.

 

b.

Company recognized deferred tax expense in 2014 in total amount 3 087 TCZK (2013 – income 3 507 TCZK).

 

 

Deferred tax assets and liabilities:

 

			Receivables								Liabilities								Net
			2013				2014				2013				2014				2013				2014
Fixed assets			84				34				-				-				-50				-
Inventories			219				291				-				-				72				-
Receivables			324				361				-				-				37				-
Provisions			305				430				-				-				125				-
Tax losses carried forward			3 234				-				-				-				-3 234				-
Net tax asset/(liability)			4 166				1 116				-				-				-3 050				-

 

Items of deferred tax as listed above were adjusted for tax non-deductible provision for receivables of 361 TCZK. Final value of deferred tax receivable is therefore recognized in total amount of 755 TCZK.

 

19.

Research and development

 

Development expenses are recognized in total amount of 4 441 TCZK in 2014 (2013 – 3 209 TCZK).

 

20.

Auditing services fees

 

Company paid for audit service 220 TCZK in 2014 (2013 – 220 TCZK)

  

21.

Material subsequent event

 

The Company’s management is not aware of any events that have occurred since the balance sheet date that would have any material impact on the financial statements as at 31 December 2014.

 

Date:		Signature of the authorised representative:
12 March 2015		Stenen one a.s., executive represented by Ondrej Veselovský Juves one a.s., executive represented by Michal Mareš

 

 

 

 

 

 

 

 

 

Unaudited financial statements

June 30, 2015 and 2014

 

 

 

 

 

 

 

MICONEX s.r.o.

Balance Sheets as of 30.06.2015 and 30.06.2014 (unaudited)

In thousands of CZK

 

				Current period (balances as of 30.06.2015)
				Gross				Adjustments				Net				Previous period as of 30.6.2014
		TOTAL ASSETS (L.02+03+31+63)			344 053				-32 244				311 809				283 594
B.		Fixed assets (L.04+13+23)			58 309				-30 104				28 205				49 173
B. I.		Intangible fixed assets (L.05 to 12)			5 788				-4 197				1 591				1 935
3.		Software			5 777				-4 197				1 580				1 935
7.		Intangible fixed assets under construction			11				-				11				-
B. II.		Tangible fixed assets (L.14 to 22)			52 521				-25 908				26 614				26 013
3.		Property, plant and equipment			32 335				-21 369				10 966				9 956
7.		Tangible fixed assets under construction			255				-				255				-
9.		Adjustments to acquired fixed assets			19 931				-4 538				15 393				16 057
B. III.		Long-term investments (L.24 to 30)			-				-				-				21 225
B. III. 1.		Investments in group undertakings			-				-				-				21 225
C.		Current assets (L.32+39+48+58)			285 439				-2 139				283 299				218 421
C. I.		Inventories (L.33 to 38)			177 609				-1 530				176 080				126 357
C. I. 1.		Raw materials			110 785				-1 530				109 255				86 048
2.		Work-in-progress and semi-finished products			66 825				-				66 825				40 308
C. II.		Long-term receivables (L.40 to 47)			1 646				-				1 646				1 859
7.		Other receivables			891				-				891				1 104
8.		Deferred tax asset			755				-				755				755
C. III.		Short-term receivables (L.49 to 57)			98 891				-610				98 281				88 092
C. III. 1.		Trade receivables			87 502				-610				86 892				78 719
6.		Tax receivables			5 878				-				5 878				4 424
7.		Short-term advances paid			5 164				-				5 164				2 086
8.		Estimated receivables			303				-				303				-
9.		Other receivables			44				-				44				2 863
C. IV.		Short-term financial assets (L.59 to 62)			7 292				-				7 292				2 114
C. IV. 1.		Cash			235				-				235				145
2.		Bank accounts			7 057				-				7 057				1 969
D. I.		Deferrals (L. 64+65+66)			305				-				305				16 000
D. I. 1.		Prepaid expenses			198				-				198				590
3.		Accrued revenues			107				-				107				15 410
		TOTAL LIABILITIES AND EQUITY (L.68+85+118)			344 053				-32 244				311 809				283 594
A.		Equity (L.69+73+78+81+84)			101 603				-32 244				69 359				58 173
A. I.		Registered capital (L.70+71+72)			200				-				200				200
A. I. 1.		Registered capital			200				-				200				200
A. III.		Reserve funds, undistributable fund and other funds from profit (L.79+80)			10				-				10				10
A. III. 1.		Statutory reserve fund / Undistributable fund			10				-				10				10
A. IV.		Retained earnings (L.82+83)			36 355				-				36 355				-5 117
A. IV. 1.		Retained profits			36 355				-				36 355				16 156
2.		Accumulated losses			-				-				-				-21 273
A. V.		Profit (loss) for the current period (+/-)			65 037				-32 244				32 794				63 080
B.		Liabilities (L.86+91+102+114)			242 148				-				242 148				225 190
B. I.		Provisions (L.87 to 90)			12 795				-				12 795				13 566
3.		Income tax provision			8 041				-				8 041				11 305
4.		Other provisions			4 754				-				4 754				2 261
B. II.		Long-term liabilities (L.92 to 101)			32				-				32				80
9.		Other long-term payables			32				-				32				80
B. III.		Short-term liabilities (L.103 to 113)			109 310				-				109 310				85 265
B. III. 1.		Trade payables			96 780				-				96 780				62 562
2.		Liabilities - group undertakings			-				-				-				268
4.		Liabilities to shareholders/owners and alliance partners			-				-				-				9 680
5.		Payables to employees			5 269				-				5 269				4 806
6.		Payables to social security and health insurance			3 288				-				3 288				2 774
7.		Tax liabilities and subsidies			859				-				859				667
10.		Estimated payables			245				-				245				1 405
11.		Other payables			2 868				-				2 868				3 102
B. IV.		Bank loans and overdrafts (L.115+116+117)			120 011				-				120 011				126 280
B. IV. 1.		Long-term bank loans			20 445				-				20 445				17 981
2.		Short-term bank loans			99 567				-				99 567				108 298
C. I.		Accruals (L.119+120)			302				-				302				231
C. I. 1.		Accrued expenses			302				-				302				231

 

 

MICONEX s.r.o.

Profit and Loss Statements for the periods from 01.01.2015 to 30.06.2015 and from 01.01.2014 to 30.06.2014 (unaudited)

In thousands of CZK

 

					Period 01.01.2015 - 30.6.2015				Period 01.01.2014 - 30.6.2014
II.		Revenue from production    (L.05+06+07)			398 686				352 572
II. 1.		Revenue from own products and services			372 167				374 703
2.		Change in inventory of own production			26 519				-22 131
B.		Cost of sales    (L.09+10)			293 863				254 409
B. 1.		Materials and consumables			264 541				230 137
B. 2.		Services			29 322				24 271
+		Added value  (L.03+04-08)			104 822				98 164
C.		Personnel expenses   (L.13 to 16)			67 839				48 483
C. 1.		Wages and salaries			38 622				34 750
C. 2.		Remuneration of board members			15 240				1 060
C. 3.		Social security and health insurance expenses			13 040				11 693
C. 4.		Social expenses			937				979
D.		Taxes and charges			18				860
E.		Depreciation of intangible and tangible fixed assets			4 309				2 890
III.		Proceeds from disposals of fixed assets and raw material (L.20+21)			14 618				14 124
III. 1.		Proceeds from disposals of fixed assets			264				851
III. 2.		Proceeds from disposals of raw material			14 354				13 272
F.		Net book value of fixed assets and raw material sold (L.23+24)			14 165				12 912
F. 1.		Net book value of fixed assets sold			282				729
2.		Raw materials sold			13 883				12 183
G.		Change in provisions and adjustments relating to operating activity and change in complex prepaid expenses			1 202				-
IV.		Other operating revenues			206				1 013
H.		Other operating expenses			839				869
*		Operating profit (loss)			31 274				47 286
VI.		Proceeds from sale of securities and ownership interests			21 608				-
J.		Securities and ownership interests sold			21 225				-
IX.		Revenue from revaluation of securities and derivatives			130				20 451
X.		Interest revenue			-				3
N.		Interest expense			810				1 291
XI.		Other financial revenues			17 594				16 653
O.		Other financial expenses			7 772				32 252
*		Profit (loss) from financial operations			9 526				3 564
Q.		Income tax on ordinary profit (loss)   (L.50+51)			8 006				-
Q. 1.		- current			8 006				-
**		Profit (loss) on ordinary activities after tax			32 794				50 850
***		Profit (loss) for the accounting period			32 794				50 850
****		Profit (loss) before tax			40 800				50 850

 

 

MICONEX s.r.o.

Statements of Cash Flows for the periods from 01.01.2015 to 30.06.2015 and from 01.01.2014 to 30.06.2014

In thousands of CZK

 

		Period 01.01.2015 - 30.06.2015				Period 01.01.2014 - 30.06.2014
Cash flows from operating activities:
Net income			32 794				50 850
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			4 309				2 890
Change in adjustments for bad debts			-1 291				-
Change in adjustments inventory and others			2 493				-
Income tax payments (provisions)			-14 533				-
Change in fair value of derivatives and effect of FX rates on cash			-130				-
Changes in assets and liabilities:
Accounts trade receivable			-6 882				2 958
Inventory			-49 723				19 898
Prepaids and other			12 725				-452
Accounts payable			34 218				-27 962
Accrued compensation and related benefits			977				-3 381
Other liabilities			-11 078				-22 684
Net cash provided by operating activities			3 878				22 118
Cash flows from investing activities:
Gain on sale of fixed assets			21 225				728
Purchases of equipment and leasehold improvements			-4 849				-4 895
Disposal of equipment and leasehold improvements			264				-
Net cash used in investing activities			16 640				-4 167
Cash flows from financing activities:
Proceeds from term debt and revolving credit facility			9 153				-
Principal payments on term debt and revolving credit facility			-2 885				-17 460
Dividends distribution			-21 608				-
Net cash provided in financing activities			-15 340				-17 460
Net increase (decrease) in cash			5 178				491
Cash and cash equivalents at beginning of period			2 114				3 731
Cash and cash equivalents at end of period			7 292				4 222
Supplemental items:
Cash paid during the period:
Income taxes paid			11 269				-
Income tax refunds			-				-
Interest			810				-

 

 

Statement of changes in equity for the period from 31.12.2014 to 30.6.2015

 

MICONEX s. r. o.

Liberec, V Horkách 76, PSC 46007

 

ID 241 40 503
registered with the Commercial Register maintained by the Regional Court in Ûstí nad Labem, Section C, file 30864

 

		Share				Statutory						Retained				Total
		capital				reserve						earnings				equity
Opening balance as of 31st of December 2014			200						10				57 963				58 173
Distribution dividends			-						-				-21 608				-21 608
Profit for the period			-						-				32 794				32 794
Balance as of 30th June 2015			200						10				69 149				69 359

 

 

Notes to the unaudited financial statements

 

June 30, 2015

 

1.

Significant accounting policies applied by the Company

 

The accompanying consolidated balance sheets as of June 30, 2015 and the consolidated statements of income and cash flows for the six months ended June 30, 2015 and 2014 are unaudited. The unaudited interim financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s financial position as of June 30, 2015 and results of operations and cash flows for the six months ended June 30, 2015 and 2014. The financial data and the other information disclosed in these notes to the financial statements related to these six month periods are unaudited. The results of the six months ended June 30, 2015 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2015 or for any other interim period or other future year.

 

2.

Fixed assets

 

a.

Intangible fixed assets

 

Unaudited		Software				Assets under construction				Total
Acquisition cost
Balance at 31.12.2014			5 514				-				5 514
Additions			274				-				274
Balance at 30.06.2014			5 788				-				5 788
Accumulated depreciation
Balance at 31.12.2014			-3 578				-				-3 578
Depreciation expense			-619				-				-619
Balance at 30.06.2014			-4 197				-				-4 197
Net book value 30.06.2014			1 591				-				1 591

 

b.

Tangible fixed assets

 

Unaudited		Lands				Buildings				Machines and equipment				Assets under constr.				Goodwill				Total
Acquisition cost
Balance at 31.12.2014			-				-				28 885				-				19 931				48 816
Additions			-				-				8 894				-				-				8 894
Disposals			-				-				-5 189				-				-				-5 189
Balance at 30.06.2015			-				-				32 590				-				19 931				52 521
Accumulated depreciation
Balance at 31.12.2014			-				-				-18 929				-				-3 875				-22 804
Depreciation expense			-								-3 310				-				-663				-3 973
Accumulated depreciation of disposed assets			-				-				870				-				-				870
Balance at 30.06.2014			-				-				-21 369				-				-4 538				-25 907
Net book value 30.06.2014			-				-				11 221				-				15 393				26 614

 

 

 

3.

Non-capitalized tangible and intangible fixed assets

 

In accordance with the accounting policy, the Company has charged to the profit and loss account tangible and intangible fixed assets in the year that they were acquired. The cumulative acquisition cost of assets which were still in use was as follows:

 

		30.05.2015 (unaudited)
Tangible and intangible fixed assets			210
Total			210

 

4.

Derivatives

 

At the balance sheet date the Company held the following financial derivatives for trading:

Forward exchange contracts		Due date (expiry)		30.06.2015  Fair value  (unaudited)
Forward  317 500 thousand JPY		16.6.2014 – 30.1.2015			-2 596
Forward      3 370 thousand USD		6.6.2014 – 30.1.2015			135
Interest swap 504 thousand EUR		30.6.2014 – 30.6.2019			-233

 

As at 30 June 2015, the Company held trading derivatives whose fair value totaled – 4 036 thousand EUR (unaudited).

 

5.

Adjustments

 

		Intangible assets			Financial assets			Inventory		Receivables		Total
Balance at 31.12.2014		-			-			1 530		1 901		3 431
Release/utilization		-			-			-		1 291		1 291
Balance at 30.06.2015		-			-			1 530		610		2 140

 

6.

Registered capital

 

Unaudited		Registered capital		Total
Balance at 31.12.2014		200			200
Changes in 2015		-			-
Balance 30.06.2015		200			200

 

 

7.

Changes in equity

 

Unaudited		Registered capital		Statutory reserve fund				Other capital funds		Dividends		Profit (loss) for the current period		Retained earnings		Retained losses		Total
Balance 31.12.2014		200			10			-		-		63 080		16 156		-21 273		58173
Distributtion of profit		-			-			-		21 608		-63 080		20 199		21 273		-
Payment dividends		-			-			-		-21 608		-		-		-		-21 608
Profit for  2015		-			-			-		-		32 794		-		-		32 794
Balance 30.06.2015		200			10			-		-		32 794		36 355		-		69 359

 

8.

Provisions

 

Unaudited		Provision for unpaid holiday		Provision for bonuses				Provision for risks and guarantees		others		Total
Balance 31.12.2014		768			536			737		220		2 261
Additions		1 267			1 016			1 559		912		4 754
Releases		-768			-536			-737		-220		-2 261
Balance 30.06.2015		1 267			1 016			1 559		912		4 754