1. Presentation of financial results of QUMAK Group in 1-3Q 2016
Warsaw, 23 November 2016

2. Results 1-3Q2016 vs. 1-3Q2015 Revenues Gross income on sales
Operating result
mln PLN
-44%
-4%
mln PLN
mln PLN
Revenues – effect of high base in 1-3Q2015. Biggest sales in the history
Closing of a 5-year investment cycle, with delay in launching a next one
Net result

3. P&LA 1-3Q2016 In thousand PLN I-IIIQ2016 I-IIIQ2015 Change %
Income on sales
-43.8%
Own cost of sales
-45.3%
Gross income (loss) on sales
17 235
17 996
-4.2%
Cost of sales
10 412
11 648
-10.6%
Cost of administration
15 249
11 147
36.8%
Other operating income
6 872
3 558
93.1%
Other operating costs
1 048
481
117.9%
Profit (loss) from operations
-2 602
-1 722 -
Result on financial revenues and costs
-474
-2 189
Profit (loss) before taxes
-3 076
-3 911
Income tax and deferred income tax
7 205
-875
Net profit (loss)
-3 036

4. Results 3Q2016 – balance sheet
In thousand PLN
Equity in total
44 766
55 194
Fixed assets in total, including
37 541
42 545
Assets from deferred income tax
9 277
15 976
Current assets, including:
Inventories
11 466
11 073
Trade and other receivables
Assets from unfinished contracts
23 924
20 849
Other non-financial assets
37 968
11 331
Cash and cash equivalents
20 734
66 781
Assets in total
Long-term liabilities, including:
14 104
16 621
Long-term borrowings and bank loans
1 809
1 422
Trade and other liabilities
6 064
8 354
Provisions
6 231
6 845
Short-term liabilities, including:
Short-term borrowings, debt instruments and bank loans
22 524
7 818
Liabilities from unfinished contracts
6 806
31 637
Current liabilities from income tax
133
291
6 323
6 465
Deferred income
23 867
21 600
Capital and liabilities in total

5. 3Q2016 vs. 3Q2015
Margins in 3Q2016
Margins in 3Q2015
mln PLN
mln PLN

6. G&A and SG&A in relation to revenue
G&A to revenue
SG&A to revenue
Increase of %GA – lower sales and severance for employees and managers, costs of internal control departments
Higher costs of sales i.e. due to growing number of small tenders, including 2-stage
Planned optimization and more flexible employment
Increase of specialists outsourcing
2.2%
mln PLN / %
mln PLN / %

7. Cash flow 3Q 2016 and financing structure
Increased demand for working capital because of the realization of contracts
Low net debt
Cash flow
Cash in hand
mln PLN
mln PLN
As at
used
available
Non-interest bearing financing or with preferential interest
4.6 X
Interest-bearing financing (including factoring)
33.1 80

8. Optimal working capital management
CKG net in days
Company skillfully uses extended payment maturity dates and preferential financing
Simultaneously maintaining inventories fast rotation
Liabilities: trade, borrowings, bank loans, factoring, other, warranty deposits, tax liabilities
Receivables: trade and other, warranty deposits
With regard to net revenues
Averaged values
Period: 270 days

9. Low debt – good financial condition
Profitability ratios
1-3Q2016
1-3Q2015
Sales profitability (gross)
6.00%
3.52%
EBITDA profitability
0.15%
0.12%
Operating profit profitability
-0.91%
-0.34%
Gross profitability
-1.07%
-0.77%
Net profitability
-3.58%
-0.59%
Financing structure ratios
As at
As at
General debt ratio
0.81
0.82
Interest-bearing debt to assets ratio
0.10
0.03
Coverage of fixed assets with equity ratio
1.19
1.30
Equity indebtedness ratio
0.54
0.17
Rules of calculating ratios:
Sales profitability (gross) = gross income from sales/ revenues from sales
EBITDA profitability = (loss from operations + depreciation)/ revenues from sales
Operating profit profitability = loss from operations/ revenues from sales
Gross profitability = loss before taxes/ revenues from sales
Net profitability = net loss/ revenues from sales
Rules of calculating:
General debt ratio – liabilities and provisions for liabilities in total/ assets in total
Interest-bearing debt to assets ratio – interest-bearing indebtedness/ assets in total
Coverage of fixed assets with equity ratio – equity/ fixed assets
Equity indebtedness ratio – interest-bearing indebtedness/ equity
Liquidity ratios
As at
As at
Current liquidity ratio (current ratio)
1.12
1.13
Quick liquidity ratio (quick ratio)
0.92
0.99
Rules of calculating:
Current financial liquidity ratio = current assets/ short-term liabilities
Quick financial liquidity ratio = (current assets – inventory – short-term prepayments) / short-term liabilities

10. Sales and orders portfolio 1-3Q 2016

11. Value of public tenders
Market environment
Increase of GDP at the level of 2.5% y/y, estimated decrease of investments at the level of 4%
In 3Q2016 by 38% lower value of public tenders in IT y/y (+4% q/q) – despite reassurances of the Ministry of Digital Affairs there were no large infrastructural and IT tenders launched
Increased “fragmentation” of tenders – by 34% higher y/y number of tenders with significantly lower value
Use of financial and organizational advantage by large entities and international corporations in the context of a weakened market
Double-digit losses in dynamics of construction and assembly production y/y
Double-digit growth of sales of cloud solutions (in particular of companies such as IBM, Microsoft, Oracle)
Noticed growing demand for constructing services centers and expansion of already existing centers, which may in a short time bring even bigger interest in services of body-leasing and in a long term outsourcing (e.g. HSBC, EY, GE, 3M, Credit Suisse)
4% increase of the number of tenders q/q
Value of tenders -38% vs. 2015
Value of public tenders
bn PLN
-38%
*By PPO data

12. Change in sales in particular business lines y/y.
Sales 1-3Q 2015/1-3Q 2016
Significant decrease of sales in lines of large exposure to public market
Change in sales in particular business lines y/y.
Sales structure in 1-3Q16
mln PLN
Biggest impact on decrease of sales y/y – completing large infrastructural projects

13. Current backlog in next years
18-months delay in distributing projects in a perspective
Extended period of waiting to sign a large part of bigger won contracts
Expected growth of portfolio still in the 4th quarter
Year 2016
Year 2016
Year 2017+
Total backlog
PLN 241 million
mln PLN
* As at 4 November

14. Backlog for 2016+
Backlog
by business lines

15. e-mail: qumak@qumak.pl
Aleje Jerozolimskie 134
PL Warszawa T: F: