TRANSLATORS’ EXPLANATORY NOTE
The English content of this report is a free translation of the registered auditor’s report of the below-mentioned Polish Company. In Poland statutory accounts as well as the auditor’s report should be prepared and presented in Polish and in accordance with Polish legislation and the accounting principles and practices generally adopted in Poland.
The accompanying translation has not been reclassified or adjusted in any way to conform to the accounting principles generally accepted in countries other than Poland, but certain terminology current in Anglo-Saxon countries has been adopted to the extent practicable. In the event of any discrepancies in interpreting the terminology, the Polish language version is binding.
PricewaterhouseCoopers Polska spółka z ograniczoną odpowiedzialnością Audyt sp. k. , ul. Polna 11, 00-633 Warsaw, Poland, T: +48 (22) 746 4000, F:+48 (22) 742 4040 ,
www.pwc.pl
PricewaterhouseCoopers Polska spółka z ograniczoną odpowiedzialnością Audyt sp. k. is entered into the National Court Register maintained by the District Court for the Capital City of Warsaw, under KRS number 0000741448, NIP 113-23-99-979. The seat of the Company is in Warsaw at Polna 11.
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Independent Registered Auditor’s Report
To the Shareholders’ Meeting and the Supervisory Board of KGHM Polska Miedź Spółka Akcyjna
Report on the audit of financial statements
Our opinion
In our opinion, the accompanying annual financial statements:
• give a true and fair view of the financial position of KGHM Polska Miedź S.A. (the “Company”) as at 31 December 2020 and the Company’s finan cial performance and the cash flows for the year then ended in accordance with the appli cable International Financial Reporting Standard s as adopted by the European Union and the adopted accounting policies,
• comply in terms of form and content with the laws applicable to the Company and the Company’s Articles of Association,
• have been prepared on the basis of properly maintained books of account in accordance with the provisions of Chapter 2 of the Accounting Law of 29 September 1994 (the “Accounting Act” – consolidated text: Journal of Laws of 2021, item 217, as amended).
Our opinion is consistent with our additional report to the Audit Committee issued on the date of this report.
What we have audited
We have audited the annual financial statements of KGHM Polska Miedź S.A. which comprise:
• the statement of financial position as at 31 December 2020,
and the following prepared for the financial year from 1 January to 31 December 2020:
• the statement of profit or loss,
• the statement of comprehensive income,
• the statement of changes in equity,
• the statement of cash flows; and
• the notes comprising a description of the significant adopted accounting policies and other explanations.
Basis for opinion
Basis for opinion
We conducted our audit in accordance with the National Standards on Auditing in the wording of the International Standards on Auditing as ado pted by the resolution of the National Counci l of Statutory Auditors (“NSA”) and pursuant to the Law of 11 May 2017 on Registered Auditors, Registere d Audit Companies and Public Oversight (the “La w on Registered Auditors” – Journal of Laws of 2020, item 1415) and the Regulation (EU) No. 537 /2014 of 16 April 2014 on specific requirements rega rding the statutory audit of public-interest entities (the “EU Regulation” – Journal of Laws EU L158). Our responsibilities under NSA are further describe d in the Auditor’s responsibilities for the audit of the financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opini on.
Independence
We are independent of the Company in accord ance with the International Code of Ethics for Professiona l Accountants (including International Indepe ndence Standards) issued by the International Ethics Standards Board for Accountants (“IESBA Code”) as adopted by resolution of the National Council of Statutory Auditors and other ethical requirements that are relevant to our audit of the financial statemen ts in Poland. We have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. During the audit, the key registered auditor and the registered aud it firm remained independent of the Compan y in accordance with the independence requirements set in the Act on Registered Auditors and in the EU Regulation.
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Our audit approach
Overview
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements. In particular, we considered where the Company’s Management Board made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits we also addressed the risk of management override of internal controls, including among other matters, consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance whether the financial statements are free from material misstatement. Misstatements may arise due to fraud or error.
They are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall materiality for the financial statements as a whole, as set out in the table below. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, if any, both individually and in aggregate on the financial statements as a whole.
• The overall materiality threshold adopted for the purposes of our audit was set at PLN 182.7 million, which represents 4.5% of the arithmetic average of pre-tax profit from the last three financial years, adjusted for the effect of the tax on the extraction of certain minerals recognized by the Company.
• We have audited the annual financial statement of the Company for the period ended 31 December 2020.
• Recognition of revenues from contracts with customers,
• Assessment of the recoverability of investments in shares of subsidiaries,
• Assessment of the recoverability of loans granted to the KGHM International LTD. Group and Future 1 Sp. z o. o.,
• Fair value measurement of derivatives and hedge accounting.
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Materiality
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Company scoping
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Key audit matters
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Overall Company materiality
PLN 182.7 million
How we determined it
4.5% of the arithmetic average of pre-tax profit from the last three financial years, adjusted for the amount of tax on the extraction of certain minerals.
Rationale for the materiality benchmark applied
We have adopted pre-tax profit as the basis for determining materiality, because in our opinion this measure is commonly used to assess the Company's operations by users of financial statements and is a generally accepted benchmark. We adopted the arithmetic average of the last three years due to the volatility of the financial result. We have adjusted the impact of the extraction tax on certain minerals recognized by the Company due to the fact that this fee is not dependent on the results achieved by the Company. We assumed significance at the level of 4.5% because based on our professional judgment it is within the acceptable quantitative thresholds of materiality.
We agreed with the Audit Committee that we would report to them misstatements identified during our audit above PLN 13.7 million,
as well as misstatements below that amount that, in our view, warranted reporting for qualitative reasons.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. They include the most significant identified risks of material misstatements, including the identified risks of
material misstatement resulting from fraud. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon. We do not provide a separate opinion on these matters.
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Key audit matter
How our audit addressed the key audit matter
Recognition of revenues from contracts with customers
In 2020, the Company recognized revenues from contracts with customers in the amount of PLN 19,326 million, which were described in part 2 of the financial statements.
The Company generates revenues mainly from sales of copper, silver and gold. Revenues are recognized when the Company meets the obligation to perform the service in the form of transferred good or services with simultaneous acquisition of control over this asset by the buyer. Revenue is recognized at an amount equal to the transaction price representing the consideration for the goods and services provided, including the pricing formulas used.
Bearing in mind the importance of revenues item in the financial statements of the Company, as well as the susceptibility of the item to the risk of misstatement, we recognized that this is a key matter for our audit.
Our testing procedures included in particular:
• understanding the internal control system and analysing the principles adopted by the Company in terms of recognizing revenue from contracts with customers and identifying the moment of passing control over the good or service provided,
• analysis of the conditions contained in significant sales contracts,
• conducting, on a selected sample, efficiency tests of selected internal controls, important for determining the correct moment of revenue recognition and the correct value of revenues from contracts with customers;
• analysis of trends in recognized revenues from contracts with customers and explanation of unusual events and one-off transactions,
• conducting tests of details on a selected sample, the selection of which used quantitative and qualitative criteria, including agreeing price rates and quantities used on issued sales invoices to contracts with customers, delivery documents and payment documents,
• confirmation of selected sales transactions directly with the Company's customers,
• verification, on a selected sample, of revenue recognition in the proper reporting period, taking into account the terms and conditions of contracts concluded with the Company's customers,
• assessment of the correctness and completeness of disclosures in the financial statements regarding revenues from contracts with customers.
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Assessment of the recoverability of investments in subsidiaries' shares
The net value of investments in subsidiaries as at 31 December 2020 was PLN 2,848 million, including:
• investments in shares in Future 1 Sp. z o. o. amounted to PLN 1,103 million,
• investments in investment certificates of KGHM VI FIZAN and KGHM VII FIZAN in the total amount of PLN 386 million, which portfolio includes companies operating in the hotel and health resorts industry,
• investment in stock and shares of other entities - PLN 1,359 million.
Investments in subsidiaries are carried at acquisition cost less impairment losses. Accounting policies and disclosures regarding investments in subsidiaries are included in note 6.1 to the annual financial statements.
During 2020, the Company carried out an analysis of the indications of the possible impairment of investments in all direct and indirect subsidiaries and estimated the recoverable amount for:
• shares in Future 1 Sp. z o. o.,
• shares in Pol-Miedź Trans Sp. z o.o.,
• investments in investment certificates of KGHM VI FIZAN and KGHM VII FIZAN.
Disclosures regarding impairment tests of investments in subsidiaries are presented in part 3 of the financial statements.
The correct determination of the write-down revaluating shares is an area that requires significant estimates by the Management Board. Determining the recoverable amount for the value of shares in subsidiaries requires the Management Board to estimate, among others, expected future cash flows from investments. Considering the inherent risk of uncertainty associated with significant estimates made by the Management Board, as well as the significance of items in the financial statements, we have determined that this is a key issue for our audit.
Our testing procedures included in particular:
• verification of compliance of the adopted valuation principle with applicable accounting standards,
• understanding and evaluation of the process of identification by the Management Board of indicators for impairment of investments in subsidiaries,
• understanding and assessment of the correctness of applied methods of testing for impairment in accordance with relevant financial reporting standards,
• checking mathematical correctness and methodological coherence (using internal valuation experts) of the valuation model prepared by the Company's Management Board based on discounted cash flows,
• assessment of work done by external experts used by the Company's Management Board, including their competence and independence,
• checking mathematical correctness and methodological coherence (using internal valuation experts) of valuation reports prepared by independent external experts,
• critical assessment of accepted assumptions and estimates made by the Company's Management Board to determine the recoverable amount, including, inter alia:
– the projection period of future cash flows based on approved budgets of companies for which an impairment test was carried out and the level of revenues, operating margin and future investment outlays assumed therein;
– the applied discount rate (based on weighted average cost of capital); and
– the residual growth rate after forecast period;
• assessment of the sensitivity analysis carried out by the Management Board of the adopted assumptions for the valuation result,
• assessment of the correctness and completeness of disclosures regarding investments in subsidiaries.
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Recoverability assessment of loans granted to the KGHM International LTD. Group and Future 1 Sp. z o. o.
As at 31 December 2020, the Company reported a balance of loans granted to subsidiaries Future 1 Sp. z o. o. and KGHM International LTD. in the amount of PLN 7,650 million, which represents 19% of the total assets of the Company. Receivables due to loans granted to Future 1 Sp. z o. o. and KGHM International LTD. depending on the classification made in accordance with IFRS 9 Financial Instruments, they are measured at:
• amortized cost, including an allowance for expected credit losses, or
• fair value through profit or loss.
Disclosures regarding the valuation of receivables from loans granted are presented in note 6.2 of the financial statements.
Determining the amount of the write-off due to expected credit losses, as well as measuring the fair value of receivables from granted loans involves the necessity to make a number of significant assumptions and make judgments, in particular regarding the Company's strategy, macroeconomic and market assumptions as well as predictions regarding legal conditions, financial plans and cash flow projections.
Considering the inherent risk of uncertainty associated with significant estimates made by the Management Board, as well as the significance of items in the financial statements, we have determined that this is a key issue for our audit.
Our testing procedures included in particular:
• understanding and assessing the correctness of the applied principle of measuring receivables from loans in accordance with the relevant financial reporting standards,
• understanding and assessing the correctness of the classification made and the methods of valuation of receivables from loans granted in accordance with the relevant financial reporting standards,
• checking the mathematical correctness and methodological consistency (using internal valuation experts) of the valuation model of the impairment loss on loans granted prepared by The Management Board of the Company, using external experts, valuation models, respectively, the fair value of receivables from loans granted and write-offs due to expected credit losses,
• critical assessment of the assumptions made by the Management Board of the Company and the estimates made to determine the expected value of loans and the expected credit losses,
• assessment of the sensitivity analysis carried out by the Management Board of the adopted assumptions for the valuation result,
• assessment of the correctness and completeness of disclosures in the financial statements in the scope of valuation of financial assets from granted loans and assessment of their recoverability.
Fair value measurement of derivatives and hedge accounting
The Company is a party to derivative transactions related to volatility of prices, interest rates and exchange rates. Disclosures related to derivative instruments are presented in note 7.2 of the financial statements.
The Company applies hedge accounting for cash flows. Some of the concluded derivative transactions are hedging instruments securing future cash flows. Some of the held hedging transactions do not constitute hedging instruments within the meaning of hedge accounting.
Our testing procedures included in particular:
• assessment of compliance of the accounting policy adopted by the Company with respect to the initial recognition and subsequent measurement of derivative instruments with the relevant financial reporting standards,
• understanding and evaluation of the process of valuation of derivative instruments, including the adopted methodology and sources of obtaining market data and unobservable valuation parameters,
• verification of key parameters of selected derivatives to external independent data sources,
• performing and independent valuations of derivatives at fair value, with the use of PwC's internal valuation experts, and comparing them
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The value of derivative financial assets as at 31 December 2020 amounted to PLN 999 million, including PLN 948 million under hedge accounting.
The value of derivative financial liabilities as at 31 December 2020 amounted to PLN 1,634 million, including PLN 1,405 million under hedge accounting.
Derivatives are measured at fair value at the end of each reporting period or at transaction settlement date. In relation to instruments hedging future cash flows, gains and losses resulting from changes in the fair value of these instrument, in the portion which is effective, are deferred in other comprehensive income and accumulated i n the capital for the valuation of financial instruments, until the transactions that are the subject of the hedge have an impact on financial result. As at 31 December 2020, the accumulated amount of other comprehensive income from the valuation o f hedging derivatives recognized in equ ity amounted to PLN 998 million.
Estimating the fair value of derivatives and the effectiveness of the established hedging relationships is an area that requires a significant estimates by the Management Board as to future metal prices, interest rates and exchange rates, and involves the use of an appropriate instrument valuation model.
The application of hedge accounting is allowed only if the criteria strictly defined in IFRS 9 are met.
Considering the inherent risk of uncertainty related to significant estimates made by the Management Board, as well as the materiality of the impact of these transactions on the financial statements, we considered this to be a key audit matter.
with results of Company's valuations,
• verification, performed by internal PwC valuation expert, of the correctness of the application of hedge accounting, determining the part of an effective hedging relationship, conducting qualitative effectiveness tests and verification of the division of relationships into effective and ineffective portion,
• assessing the differences in the fair value measurement of derivative instruments between independent PwC valuations and the valuations prepared by the Company. In cases where the obtained results differed from those calculated by the management of the Company, we assessed whether these differences are within acceptable ranges, taking into account the estimates of future metal prices, interest rates and exchange rates in the valuation,
• verification of disclosures in the financial statements in terms of meeting the requirements of the standards.
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Responsibility of the Management and Supervisory Board for the financial statements
The Management Board of the Company is responsible for the preparation of the annual financial statements that give a true and fair view of the Company’s financial position and results of operations, in accordance with International Financial Reporting Standards as adopted by the European Union, the adopted accounting policies, the applicable laws and the Company’s Articles of Association, and for such internal control as the Management Board determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Company’s Management Board is responsible for assessing the Company’s ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Management Board either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Company’s Management Board and members of the Supervisory Board are obliged to ensure that the financial statements comply with the requirements specified in the Accounting Act. Members of the Supervisory Board are responsible for overseeing the financial reporting process.
Auditor’s responsibility for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the NSA will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence economic decisions of users taken on the basis of these financial statements.
The scope of the audit does not include an assurance on the Company’s future profitability nor the efficiency and effectiveness of the Company’s Management Board conducting its affairs, now or in future.
As part of an audit in accordance with NSA, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
• identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control,
• obtain an understanding of internal control relevant to the audit 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 Company’s internal control,
• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Company’s Management Board,
• conclude on the appropriateness of the Company’s Management Board’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern,
• evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated to the Audit Committee, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Other information, including the Report on the operations
Other information
Other information comprises a Report on the Company’s and Group’s operations for the financial year ended 31 December 2020 (“the Report on the operations”) and the corporate governance statement, which is separate parts of the Report on the operations, and the separate report on non-financial information referred to in Article 44b para. 1 of the Accounting Act, and separate report on payments to public administration (“report on payments”) and the Annual Report for the financial year ended 31 December 2020 (together “Other Information”). Other information does not include the financial statements and our auditor’s report thereon.
Responsibility of the Management and Supervisory Board
The Management Board of the Company is responsible for the preparation of the Other Information in accordance with the law.
The Company’s Management Board and the members of the Supervisory Board are obliged to ensure that the Report on the operations including its separate parts and a separate report on payments complies with the requirements of the Accounting Law.
Registered auditor’s responsibility
Our opinion on the financial statements does not cover the Other Information.
In connection with our audit of the financial statements, our responsibility is to read the Other Information and, in doing so, consider whether the Other Information is materially inconsistent with the information in the financial statements, our knowledge obtained in our audit, or otherwise appears to be materially misstated. If, based on
the work performed, we identified a material misstatement in the Other Information, we are obliged to inform about it in our audit report. In accordance with the requirements of the Law on the Registered Auditors, we are also obliged to issue an opinion on whether the Report on the operations has been prepared in accordance with the law and is consistent with information included in annual financial statements.
We obtained the Report on the operations before the date of this audit report, and the Annual Report will become available after that date.
If we identify a material misstatement in the Annual Report, we are obliged to inform the Company’s Supervisory Board.
Opinion on the Report on the operations
Based on the work we carried out during our audit, in our opinion, the Report on the operations:
• has been prepared in accordance with the requirements of Article 49 of the Accounting Act para. 70 of the Regulation of the Minister of Finance dated 29 March 2018 on current and periodical information submitted by issuers of securities and conditions for considering as equivalent the information required under the legislation of a non-Member State (“Regulation on current information” – Journal of Laws 2018, item 757),
• is consistent with the information in the annual financial statements and annual consolidated financial statements.
Moreover, based on the knowledge of the Company and its environment obtained during our audit, we have not identified any material misstatements in the Report on the operations.
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Opinion on the corporate governance statement
In our opinion, in its corporate governance statement, the Company included information set out in para. 70.6 (5) of the Regulation on current information. In addition, in our opinion, information specified in paragraph 70.6 (5)(c)–(f), (h) and (i) of the said Regulation included in the corporate governance statement are consistent with the applicable provisions of the law and with information included in the financial statements.
Information on non-financial information
In accordance with the requirements of the Act on the Registered Auditors, we confirm that the Company has included in its Report on the operations, information on the preparation of a separate report on non-financial information referred to in Article 44b para. 9 of the Accounting Act and that the Company has prepared such a separate report.
We have not performed any assurance work relating to the separate report on non-financial information and we do not provide any assurance with regard to it.
Report on other legal and regulatory requirements
Opinion on the requirements of Article 44 of the Energy Law
The Company's Management Board is responsible for preparing regulatory financial information in accordance with the requirements of Art. 44 of the Energy Law of 10 April 1997 ("Energy Law" - Journal of Laws of 2020, item 833, as amended).
In accordance with the requirements of art. 44 of the Energy Law, it is our responsibility to examine the regulatory financial information and issue the opinion required by the Energy Law.
Regulatory financial information is presented in note 12.11 of the additional information. Our audit did not include an assessment of whether the information required for disclosure by this law is sufficient to ensure equal treatment of recipients and to eliminate cross-subsidization between activities.
In our opinion, the relevant items of the statement of financial position as at 31 December 2020 and the result statements for the year ended on that date, included in the regulatory financial information (explanatory note No. 12.11), prepared separately for each business activity meet, in all material respects, requirements referred to in art. 44 section 2 of the Energy Law, as regards ensuring equal treatment of recipients and eliminating cross-subsidization between these activities.
In our opinion, the relevant items in the financial statements as at 31 December 2020 and the result reports for the year ended on that date, included in the regulatory financial information (explanatory note No. 12.11), meet, in all material respects, the requirements of Art. 44 paragraph 2a of the Energy Law.
Statement on the provision of non-audit services
To the best of our knowledge and belief, we declare that the non-audit services we have provided to the Company and its subsidiaries are in accordance with the applicable laws and regulations in Poland and that we have not provided any non-audit services prohibited under Article 5(1) of the EU regulation and Article 136 of the Law on Registered Auditors.
During the audited period, we provided to the Company, and its controlled entities in the European Union, the following non-audit services which were not disclosed in the Company’s Report on operations or in the financial statements:
● Certifying Service regarding the correct calculation of the value of the intensity of electricity consumption, arithmetic average of incurred costs of electricity used for own needs and unit gross added value determined in accordance with the guidelines contained in Article 52 para. 3 and Article 53 para. 2 and 3 of the Act on renewable energy sources of 20 February 2015, and the Regulation of the Minister of Climate of 27 August 2020 o the method of calculating the intensity of electricity consumption by industrial users,
● Attestation Service in the scope of responsible supply chain for gold and silver in accordance with LBMA responsible Gold Guidance and LBMA Responsible Silver Guidance,
● Attestation Service in the scope of calculation of excise duty ratio in accordance with requirements of Article 31d
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para. 8 of Excise Duty Act of 6 December 2008,
● Attestation service providing reasonable assurance in the scope of verification of compliance with the applicable requirements of the Electronic Reporting Format for the financial statements of the KGHM Polska Miedź S.A. Group. for the year ended 31 December 2020 in order to meet the requirements of art. 3 and 4 of the Commission Delegated Regulation (EU) 2019/815 of 17 December 2018 supplementing Directive 2004/109/EC of the European Parliament and of the Council with regard to regulatory technical standards
on the specification of a single electronic reporting format (the “ESEF Regulation”),
● Attestation Service in the scope of including information required by the Polish Act on Public Offerings in the Remuneration Report.
Appointment
We have been appointed to audit the annual financial statements of the Company by the Resolution of the Supervisory Board of 7 December 2018 for the period of three years, i.e. 2019-2021. We have been auditing the Company’s financial statements without interruption since the financial year ended 31 December 2019, i.e. for 2 consecutive years.
The Key Registered Auditor responsible for the audit on behalf of PricewaterhouseCoopers Polska spółka z ograniczoną odpowiedzialnością Audyt sp.k., a company entered on the list of Registered Audit Companies with the number 144., is Katarzyna Ignaszak.
Katarzyna Ignaszak
Key Registered Auditor
No. 11715
Wrocław, 24 March 2021