TOYA S.A. Capital Group
Consolidated financial statements
for the year ended 31 December 2022
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
2
Contents
Consolidated statement of financial position ............................................................................................................... 4
Consolidated statement of profit or loss and other comprehensive income ................................................................. 5
Consolidated statement of changes in equity ............................................................................................................... 7
Consolidated cash flow statement ................................................................................................................................ 8
Accounting policy and other explanatory notes ............................................................................................................ 9
1. General information ............................................................................................................................................ 9
2. Capital group structure ....................................................................................................................................... 10
3. Summary of significant accounting policies ........................................................................................................ 11
3.1 Basis for preparation ............................................................................................................................................ 11
3.2 Effect of new or amended standards and interpretations on the Group’s consolidated financial statements .... 11
3.3 Consolidation ........................................................................................................................................................ 14
3.4 Segment reporting ................................................................................................................................................ 14
3.5 Valuation of items denominated in foreign currencies ......................................................................................... 14
3.6 Property, plant and equipment ............................................................................................................................ 15
3.7 Leases ................................................................................................................................................................... 16
3.8 Intangible assets ................................................................................................................................................... 16
3.9 Goodwill ................................................................................................................................................................ 17
3.10 Impairment of non-financial non-current assets ............................................................................................. 17
3.11 Borrowing costs ............................................................................................................................................... 17
3.12 Financial assets ................................................................................................................................................ 17
3.13 Impairment of financial assets ......................................................................................................................... 18
3.14 Inventory .......................................................................................................................................................... 19
3.15 Cash and cash equivalents ............................................................................................................................... 19
3.16 Equity ............................................................................................................................................................... 19
3.17 Bank loan liabilities .......................................................................................................................................... 20
3.18 Trade and other payables ................................................................................................................................ 20
3.19 Deferred revenue ............................................................................................................................................. 20
3.20 Current and deferred income tax ..................................................................................................................... 21
3.21 Liabilities from employee benefits ................................................................................................................... 21
3.22 Provisions ......................................................................................................................................................... 22
3.23 Recognition of revenue .................................................................................................................................... 22
3.24 Other operating income and expenses ............................................................................................................ 23
3.25 Financial income and expenses ........................................................................................................................ 23
3.26 Dividends ......................................................................................................................................................... 23
4. Foreign currencies used in preparation of these financial statements ................................................................ 23
5. Material accounting estimates and judgements ................................................................................................. 24
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
3
6. Financial risk management ................................................................................................................................. 25
6.1 Market risk ........................................................................................................................................................... 25
6.2 Credit risk .............................................................................................................................................................. 27
6.3 Liquidity risk .......................................................................................................................................................... 28
6.4 Capital management ............................................................................................................................................ 30
7. Financial instruments ......................................................................................................................................... 30
8. Property, plant and equipment .......................................................................................................................... 31
9. Intangible assets ................................................................................................................................................. 33
10. Right-of-use assets ............................................................................................................................................. 34
11. Goodwill ............................................................................................................................................................. 35
12. Inventory ............................................................................................................................................................ 36
13. Trade and other short-term receivables ............................................................................................................. 37
14. Cash and cash equivalents .................................................................................................................................. 39
15. Additional explanation to the cash flow statement ............................................................................................ 39
16. Share capital ....................................................................................................................................................... 40
17. Retained earnings and dividend per share .......................................................................................................... 40
18. Loans and borrowings liabilities ......................................................................................................................... 41
19. Trade and other payables ................................................................................................................................... 44
20. Liabilities from employee benefits ..................................................................................................................... 44
21. Lease liabilities ................................................................................................................................................... 46
22. Provisions ........................................................................................................................................................... 47
23. Operating segments ........................................................................................................................................... 47
24. Sales revenue ..................................................................................................................................................... 48
25. Costs by type and cost of goods for resale sold .................................................................................................. 49
26. Cost of employee benefits .................................................................................................................................. 50
27. Other operating revenue and expenses .............................................................................................................. 50
28. Financial revenue and expenses ......................................................................................................................... 51
29. Income tax.......................................................................................................................................................... 51
30. Earnings per share .............................................................................................................................................. 55
31. Financial guarantees granted and received ........................................................................................................ 55
32. Transactions with related entities ...................................................................................................................... 56
33. Material events subsequent to the end of reporting period ............................................................................... 57
33.1. Change in the composition of the Audit Committee ............................................................................................ 57
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
4
Consolidated statement of financial position
31 December
2022
31 December
2021
ASSETS
Note
Property, plant and equipment
8
64,672
45,090
Intangible assets
9
4,610
3,899
Right-of-use assets
10
29,725
31,188
Goodwill
11
830
835
Other receivables
52
51
Deferred income tax assets
29
4,701
4,477
Total non-current assets
104,590
85,540
Inventory
12
341,166
369,256
Trade and other receivables
13
105,359
108,709
Income tax receivables
847
-
Cash and cash equivalents
14
38,836
38,855
Total current assets
486,208
516,820
Total assets
590,798
602,360
EQUITY AND LIABILITIES
Share capital
16
7,504
7,504
Share premium
35,677
35,677
Reserve capital
329
329
Exchange differences from translating foreign entities
10,543
10,883
Other capitals
(73)
(209)
Retained earnings
17
316,714
246,494
Equity attributable to shareholders of the Parent Company
370,694
300,678
Total equity
370,694
300,678
Liabilities from loans
18
17,143
10,049
Lease liabilities
21
17,240
18,414
Deferred income tax liability
546
318
Liabilities from employee benefits
20
566
678
Other long-term liabilities
35
54
Total long-term liabilities
35,530
29,513
Trade and other payables
19
95,619
156,068
Liabilities from employee benefits
20
11,806
10,023
Liabilities from loans
18
65,024
86,904
Lease liabilities
21
8,694
9,170
Liabilities from current income tax
29
1,703
8,393
Other provisions
22
1,728
1,611
Total short-term liabilities
184,574
272,169
Total liabilities
220,104
301,682
Total equity and liabilities
590,798
602,360
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
5
Consolidated statement of profit or loss and other comprehensive income
Note
12 months ended
31 December
12 months ended
31 December
2022
2021
Revenue from sales of goods
23, 24
762,590
686,737
Cost of goods and materials sold
23, 25
(519,925)
(455,330)
Gross sales profit
242,665
231,407
Selling costs
25
(108,904)
(92,713)
Administrative expenses
25
(40,518)
(37,762)
Expected credit losses
13
(15)
441
Other operating income
27
4,872
851
Other operating expenses
27
(456)
(3,343)
Operating profit
97,644
98,881
Financial income
28
279
107
Financial expenses
28
(9,574)
(1,675)
Profit before tax
88,349
97,313
Income tax
29
(18,129)
(19,918)
Profit from continuing operations
70,220
77,395
Net profit
70,220
77,395
Other comprehensive income that may be reclassified to profit or loss
(340)
7,327
Foreign operations currency translation differences
(340)
7,327
Other comprehensive income that will not be reclassified to profit or loss
168
(19)
Actuarial gains or losses
168
(19)
Other gross comprehensive income
(172)
7,308
Income tax on other comprehensive income, that will not be reclassified to profit
or loss
(32)
4
Other net comprehensive income
(204)
7,312
Total net comprehensive income for the financial year
70,016
84,707
Net profit for the year attributable to:
Shareholders of the Parent Company
70,220
77,395
Non-controlling interests
-
-
Total comprehensive income for the year attributable to:
Shareholders of the Parent Company
70,016
84,707
Non-controlling interests
-
-
Other comprehensive income attributable to:
Shareholders of the Parent Company
(204)
7,312
Non-controlling interests
-
-
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
6
Earnings per share
12 months ended
31 December
12 months ended
31 December
2022
2021
Basic earnings per share in PLN
30
0.94
1.03
- from continuing operations
0.94
1.03
- from discontinued operations
-
-
Diluted earnings per share in PLN
30
0.94
1.03
- from continuing operations
0.94
1.03
- from discontinued operations
-
-
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
7
Consolidated statement of changes in equity
Share capital
Share premium
Reserve capital
Exchange
differences from
translating foreign
entities
Other capitals
Retained earnings
Attributable to
shareholders of the
Parent Company
Total equity
As at 1 January 2022
7,504
35,677
329
10,883
(209)
246,494
300,678
300,678
Comprehensive income
Net profit
-
-
-
-
-
70,220
70,220
70,220
Other comprehensive income
-
-
-
(340)
136
-
(204)
(204)
Total comprehensive income
-
-
-
(340)
136
70,220
70,016
70,016
Transactions with owners
Dividend paid
-
-
-
-
-
-
-
-
Total changes in equity
-
-
-
(340)
136
70,220
70,016
70,016
As at 1 January 2022
7,504
35,677
329
10,543
(73)
316,714
370,694
370,694
Share capital
Share premium
Reserve capital
Exchange
differences from
translating foreign
entities
Other capitals
Retained earnings
Attributable to
shareholders of the
Parent Company
Total equity
As at 1 January 2021
7,504
35,677
329
3,556
(194)
190,861
237,733
237,733
Comprehensive income
Net profit
-
-
-
-
-
77,395
77,395
77,395
Other comprehensive income
-
-
-
7,327
(15)
-
7,312
7,312
Total comprehensive income
-
-
-
7,327
(15)
77,395
84,707
84,707
Transactions with owners
Dividend paid
-
-
-
-
-
(21,762)
(21,762)
(21,762)
Total changes in equity
-
-
-
7,327
(15)
55,633
62,945
62,945
As at 31 December 2021
7,504
35,677
329
10,883
(209)
246,494
300,678
300,678
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
8
Consolidated cash flow statement
Note
12 months ended
31 December
12 months ended
31 December
2022
2021
Cash flows from operating activities
Profit before tax
88,349
97,313
Adjustments for:
(7,141)
(80,578)
Amortization and depreciation
25
15,141
14,337
Net interest
28
9,298
1,568
Profit/Loss on investing activities
27
(564)
121
Foreign exchange gains/losses
2,015
1,351
Other adjustments
(3)
3
Changes in balance sheet items:
Change in trade and other receivables
15
(5,300)
(26,115)
Change in inventories
15
28,390
(144,688)
Change in provisions
15
110
119
Change in trade and other payables
15
(58,152)
72,541
Change in employee benefit liabilities
15
1,924
185
Cash from activities
81,208
16,735
Income tax paid
(25,700)
(18,282)
Net cash from operating activities
55,508
(1,547)
Cash flows from investing activities
Sale of property, plant and equipment
738
58
Purchases of property, plant and equipment and intangible assets
(21,736)
(29,005)
Interest received
276
104
Net cash from investing activities
(20,722)
(28,843)
Cash flows from financing activities
Proceeds from loans
16,554
65,351
Repayments of loans
(31,675)
-
Repayment of lease liabilities
(9,385)
(9,106)
Interest paid on loans
(7,819)
(359)
Interests paid on leases
(1,419)
(1,215)
Dividends paid
-
(21,762)
Net cash from financing activities
(33,744)
32,909
Change in cash before exchange rate differences
1,042
2,519
Effect of translation of cash and cash equivalents
(1,061)
2,375
Net change in cash
(19)
4,894
Cash and cash equivalents at the beginning of the period
14
38,855
33,961
Cash and cash equivalents at the end of the period
14
38,836
38,855
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
9
Accounting policy and other explanatory notes
1. General information
TOYA S.A. (the “Company” or the “Parent Company”) is a joint stock company established under the Commercial
Companies Code. Basic information about the Company is presented below:
Name of the reporting entity TOYA S.A.
Legal form of the entity Joint-stock company
Entity’s registered office address Ul. Sołtysowicka 13/15, 51-168 Wrocław
Entity’s headquarters Poland
Country of registration Poland
Primary location of entity’s operations Poland
Name of the Parent Company Not applicable
Name of the ultimate parent of the group Not applicable
The Company is a successor of the civil law partnership “TOYA IMPORT-EKSPORT” with its registered office in Wrocław,
whose partners, given the scale of the business and its rapid development, resolved to transfer the business in 1999
to a newly established joint stock company TOYA S.A. with its registered office in Wrocław.
The Company was incorporated by virtue of a Notarial Deed of 17 November 1999 drawn up by Notary Public Jolanta
Ołpińska in the Notarial Office in Wrocław (Rep. A No 5945/99). Subsequently, pursuant to a court decision
of 3 December 1999, the Company was entered into the Commercial Register maintained by the District Court for
Wrocław-Fabryczna, 6
th
Commercial Division, under entry No RHB 9053. By virtue of a decision of 5 December 2001,
the District Court for Wrocław-Fabryczna, 6
th
Commercial Division of the National Court Register, entered the Company
into the Register of Entrepreneurs under entry No KRS 0000066712.
As at 31 December 2022, TOYA S.A. operates one branch – in Nadarzyn.
The Company’s Statistical Identification Number (REGON) is 932093253, the Nadarzyn Branch has been assigned the
Statistical Identification Number (REGON): 932093253-00031.
The core business activities of TOYA S.A. include import and distribution of industrial goods, including
primarily hand and power tools for professional and DIY use. The Company distributes goods manufactured and
supplied mainly by companies located in China. For many years, the Company has been implementing its strategy of
expanding into international markets. It focuses primarily on Central, Southern, and Eastern Europe (Romania,
Hungary, Czech Republic, Germany, the Balkan States, Russia, Lithuania, Ukraine, Belarus, Moldova). In 2003,
a subsidiary, TOYA Romania S.A., was established, which business includes sales of hand and power tools in Romania.
This company offers the same products and brands as those offered by the Company in Poland. In 2013, the company
Yato Tools (Shanghai) Co. Ltd., located in China was included in the group of entities subject to full consolidation. The
entity deals in the distribution of YATO brand tools and power tools in China and in certain other foreign markets not
supported by the Parent Company. In 2019, the company Yato Tools (Jiaxing) Co. Ltd. was founded, with its registered
office in Baibu Town, China, which main business is also distribution of tools and power tools. The major part of the
activities of Yato Tools (Shanghai) and Yato Tools (Jiaxing) is supply chain management to companies in Poland and
Romania.
The duration of the Parent Company and the group entities is unlimited.
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
10
In the period from 1 January 2022 to 26 January 2022, the Management Board of TOYA S.A. was composed of the
following members:
• Grzegorz Pinkosz President of the Management Board;
• Maciej Lubnauer Vice-President of the Management Board.
On 27 January 2022, the Supervisory Board appointed Mr. Robert Borys to act as the Vice-President of the Management
Board. From that date and until the date of approval of these financial statements for publication, the Management
Board was composed of the following members:
• Grzegorz Pinkosz President of the Management Board;
• Maciej Lubnauer Vice-President of the Management Board;
• Robert Borys Vice-President of the Management Board.
In the period from 1 January 2022 to 31 December 2022 and until the date of approval of these financial statements
for publication, the Supervisory Board of the Parent Company was composed of the following members:
• Piotr Mondalski President of the Supervisory Board;
• Jan Szmidt Vice-President of the Supervisory Board;
• Dariusz Górka Member of the Supervisory Board;
• Michał Kobus Member of the Supervisory Board;
• Grzegorz Maciąg Member of the Supervisory Board;
• Wojciech Bartłomiej Papierak Member of the Supervisory Board;
• Beata Szmidt Member of the Supervisory Board.
These consolidated financial statements of the Group cover the year ended on 31 December 2022. Comparative data
is presented:
• as at 31 December 2021 - for the consolidated statement of financial position;
• for the period from 1 January 2021 to 31 December 2021 - for the consolidated statement of profit or loss
and other comprehensive income, the consolidated statement of cash flows and the consolidated statement
of changes in equity.
These consolidated financial statements of the Group for the year ended 31 December 2022 were approved for
publication by the Management Board on 23 March 2023.
2. Capital group structure
As at 31 December 2022, the Group comprised the following entities:
Entity name
Registered
office
Business profile
Type of equity link
% of shares and
votes held
Date of assuming
control
Method of
consolidation
as at the end of the
reporting period
TOYA S.A.
Wrocław,
Poland
Distribution of hand
and power tools
Parent Company
Not applicable
Not applicable
Not applicable –
Group’s Parent
Company
Toya Romania S.A.
Bucharest,
Romania
Distribution of hand
and power tools
Subsidiary
99.99
November
2003
Full consolidation
method
Yato Tools
(Shanghai) Co., Ltd.
Shanghai,
China
Distribution of hand
and power tools
Subsidiary
100.00
January 2013
Full consolidation
method
Yato Tools (Jiaxing)
Co., Ltd.
Baibu Town,
China
Distribution of hand
and power tools
Subsidiary
100.00
December 2019
Full consolidation
method
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
11
3. Summary of significant accounting policies
The most significant accounting principles applied in the preparation of these consolidated financial statements have
been presented below. Those principles were applied in all periods presented in a continuous way, unless stated
otherwise.
3.1 Basis for preparation
These consolidated financial statements of the Group for the financial year ended 31 December 2022 have been
prepared in accordance with the International Financial Reporting Standards (“IFRS”) and interpretations issued by the
International Accounting Standards Board, as adopted by the European Union (“EU”).
These consolidated financial statements have been prepared in accordance with IFRS and Interpretations of the
International Financial Reporting Interpretations Committee (“IFRIC”) which were issued and in effect as at the
reporting date, i.e. 31 December 2022.
Certain entities of the Group maintain their accounting books in accordance with accounting policies specified in other
accounting standards. The consolidated financial statements include a number of adjustments not included in the
books of account of those entities of the group, which were made to reconcile the financial statements of those
companies to be in compliance with IFRS.
The policies described below have been consistently applied to all the periods presented, except for changes resulting
from the application of new or amended standards from 1 January 2022, which were described below.
These consolidated financial statements have been prepared in accordance with the historical cost convention.
The preparation of the consolidated financial statements in compliance with IFRS requires the use of significant
accounting estimates. It also requires the Management Board of the Parent Company to exercise judgement in the
process of applying the accounting policies adopted by the Group. The areas involving a higher degree of judgement
or complexity, or areas where assumptions and estimates are material from the point of view of the consolidated
financial statements are disclosed in note 5.
These consolidated financial statements have been prepared on the assumption that the Group companies will
continue as going concerns in the foreseeable future.
3.2 Effect of new or amended standards and interpretations on the Group’s consolidated
financial statements
These consolidated financial statements have been prepared on the basis of the EU IFRS issued and effective as at the
reporting date, i.e. 31 December 2022.
The EU IFRS comprise all International Accounting Standards, International Financial Reporting Standards and related
Interpretations, excluding Standards and Interpretations listed below, which are awaiting approval by the European
Union.
a) New standards, interpretations and amendments to existing standards effective in 2022
• Amendments to IFRS 3 Business Combinations, IAS 16 Property, Plant and Equipment, IAS 37 Provisions,
Contingent Liabilities and Contingent Assets and Amendments to International Financial Reporting Standards 2018-
2020
The package of changes includes three changes to the standards:
• updates the reference made in IFRS 3 Business Combinations to the Conceptual Framework for the
Preparation and Presentation of Financial Statements without changing the accounting requirements for
business combinations;
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
12
• excludes the possibility of reducing the cost of tangible fixed assets by the amounts received from the sale of
products produced in the period when the entity prepares the item of tangible fixed assets for its intended
use. Such revenues and related costs should be recognized in the profit and loss account for the period (IAS
16);
• explains what costs of meeting contractual obligations the entity takes into account when assessing whether
a given contract will give rise to liabilities (IAS 37).
The package also includes Amendments to the International Financial Reporting Standards 2018-2020, which contain
clarifications and specify the provisions of the standards in the field of IFRS 1 First-time Adoption of International
Financial Reporting Standards, IFRS 9 Financial Instruments, IAS 41 Agriculture and examples illustrating IFRS 16 Leases.
The above changes did not have a significant impact on the consolidated financial statements of the Group.
b) New standards, interpretations and amendments, which are not yet effective and have not been applied early
by the Group
Standards and Interpretations - approved by the EU, which have not yet come into force for annual periods beginning
on 1 January 2022
Standards and Interpretations
Type of anticipated change in accounting policies
Possible impact on the consolidated
financial statements
Amendments to IAS 1 Presentation of
Financial Statements and IFRS Practice
Statement 2: Making materiality
judgements
(effective for annual periods beginning
on or after 1 January 2023, with earlier
adoption permitted)
Amendments to IAS 1 require companies to disclose their
material accounting policy information rather than their
significant accounting policies.
The Company does not expect the
standard and amendments to have a
significant impact on its consolidated
financial statements of the Group.
Amendments to IAS 8 Accounting
Policies, Changes in Accounting
Estimates and Errors: Definition of
accounting estimates (issued on 12
February 2021)
(effective for annual periods beginning
on or after 1 January 2023, with earlier
adoption permitted)
The amendments introduce the definition of accounting
estimates as monetary amounts disclosed in the financial
statements that are subject to measurement uncertainty and
clarify the relationship between accounting principles and
estimates, indicating that the entity prepares accounting
estimates to achieve the objectives indicated in the accounting
principles.
The above Amendments are not
expected to have a significant impact
on the consolidated financial
statements of the Group.
Amendments to IAS 12 Income Taxes:
Deferred Tax Related to Assets and
Liabilities arising from a Single
Transaction
(effective for annual periods beginning
on or after 1 January 2023, with earlier
adoption permitted)
The amendments narrow the scope of application of the
exemption from the initial recognition of deferred tax in order to
exclude transactions that give rise to temporary differences in
equal amounts or that offset each other - for example, leases and
liquidation liabilities. In the case of leases and liquidation
liabilities, the related deferred tax assets and liabilities should be
recognized from the beginning of the earliest comparative period
presented and any cumulative effect is recognized as an
adjustment to retained earnings or other components of equity
at that date. For all other transactions, the changes apply to
transactions that occur after the beginning of the earliest period
presented.
The Group accounts for deferred tax
on lease and liquidation liabilities
using the "integrally related"
approach, which results in a similar
effect as the introduced changes,
therefore no significant impact on the
consolidated financial statements is
expected.
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
13
Standards and Interpretations awaiting EU endorsement
Standards and Interpretations
Type of anticipated change in accounting policies
Possible impact on the
consolidated financial
statements
Amendments to IFRS 10 and IAS 28 Sale
or contribution of assets between an
investor and its associate or joint
venture
(Effective date deferred indefinitely.
Available for optional adoption in IFRS
financial statements. The European
Commission has decided to defer
approval indefinitely; it is unlikely to be
endorsed by the EU in the foreseeable
future)
The amendments clarify that in the case of a transaction involving an
associate or joint venture, the scope of recognition of profit or loss
depends on whether the assets sold or contributed constitute a
business, in such a way that:
• a full gain or loss is recognized when the transaction between
the investor and its associate or joint venture involves the
transfer of an asset or an asset constituting a business
(regardless of whether they are located in a subsidiary or not),
while
• a partial gain or loss is recognized when the transaction
between the investor and its associate or joint venture involves
assets that do not constitute business, even if those assets are
held in a subsidiary.
The changes are not expected to
have a significant impact on the
consolidated financial statements
of the Company, as the Group has
no associates or joint ventures.
Amendments to IAS 1 Presentation of
Financial Statements: Current or Non-
Current Liabilities containing
conditions regarding financial ratios
specified in the loan agreement
(covenants)
(Applicable for annual periods
beginning on or after 1 January 2024,
and should be applied retrospectively.
Early application is allowed.
Specific transitional requirements
apply for entities that have already
adopted the previously issued but not
yet effective 2020 Amendments.
In accordance with the applicable requirements of IAS 1, entities
classify a liability as short-term when they do not have an
unconditional right to defer settlement of the liability for at least 12
months from the balance sheet date. The changes introduced in 2020
removed the requirement that the right must be unconditional, and
instead require that the right to defer payment exists at the reporting
date and be substantiated (the classification of liabilities is not
affected by management's intentions or expectations as to whether
the company will use the right to defer settlement of the liability or
decides to settle the liability earlier). The changes introduced in 2022
also specify that if the right to defer the settlement of a liability
depends on the company meeting the conditions regarding the ratios
set out in the loan agreement (covenants), the presentation of the
liability as short-term or long-term. Contracts that the company must
comply with after the balance sheet date do not affect the
classification of the liability at that date. However, the amendments
require entities to disclose information about these future contracts
to help users understand the risk that these obligations may fall due
within 12 months after the balance sheet date. The amendments also
clarify how an entity classifies a liability that may be settled in
exchange for treasury shares (e.g. convertible debt).
The Amendments are not
expected to have a significant
impact on the consolidated
financial statements of the Group.
Amendments to IFRS 16 Leases: Lease
liability under sale and leaseback
transactions
(Applicable for annual periods
beginning on or after 1 January 2024)
Earlier application is allowed.
Amendments to IFRS 16 Leases affect the manner in which the seller-
lessor settles variable lease payments under sale and leaseback
transactions. The changes introduce a new model of accounting for
variable payments and will require seller-lessees to reassess and
possibly convert sales and leaseback transactions entered into from
2019.
The changes confirm the following:
• at initial recognition, the seller-lessee includes variable
lease payments when measuring the lease liability arising
from a sale and leaseback transaction;
• after initial recognition, the seller-lessee applies the
general requirements for subsequent recognition of the
lease liability in such a way that it does not recognize any
gains or losses related to the retained right of use.
The seller-lessee may adopt different approaches that meet the new
requirements for subsequent valuation. These changes do not
change the accounting for leases other than those resulting from sale
and leaseback transactions.
The Group does not expect the
Standard to have a significant
impact on its consolidated
financial statements as the Group
is not a lessor.
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
14
As at the date of approving of these consolidated financial statements, The Management Board has not yet completed
works on the assessment of the impact of introducing the above standards and amendments to standards on the
accounting principles (policy) applied by the Group in relation to the operations or financial results of group entities,
however as at the date of approval of these consolidated financial statements for publication, the Management Board
does not expect the introduction of other standards and amendments to standards to have a significant impact on the
accounting principles (policy) applied by the Group.
3.3 Consolidation
Subsidiaries
Subsidiaries comprise all entities with respect to which the Group is authorised to govern the financial and operating
policies, which generally accompanies the control of the majority of the overall voting rights in their decision-making
bodies. The existence and effect of potential voting rights that are currently exercisable or convertible are considered
when assessing whether the Group controls another entity. Subsidiaries are fully consolidated from the date on which
the control is transferred to the Group. They are no longer consolidated once the control ceases.
Acquisition of subsidiaries by the Group is accounted for using the acquisition method.
The cost of an acquisition is measured as the fair value of the assets transferred, financial instruments issued and
liabilities incurred or assumed at the date of exchange, plus liabilities resulting from a contingent consideration
arrangement. Acquisition-related costs are recognised in the consolidated profit or loss as incurred. Identifiable assets
acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair
values at the acquisition date. For each acquisition, the Group recognises non-controlling interests in the acquiree at
their fair value or at the non-controlling interest’s proportionate share of the acquiree’s net assets.
Any excess of the consideration transferred, the value of non-controlling interests in the acquiree and the fair value of
any previously held equity interest in the acquiree as at the acquisition date over the fair value of net identifiable assets
acquired is recorded as goodwill. If that amount is lower than the fair value of net assets of the acquiree, the difference
is recognised directly in consolidated profit or loss.
Revenue and costs, balances and unrealised gains on transactions between the Group companies are eliminated.
Where necessary, the accounting policies of subsidiaries were changed to ensure consistency with the accounting
policies applied by the Group.
3.4 Segment reporting
Information on operating segments is presented on the same basis as that used for internal reporting to the Parent
Company's Management Board, which is responsible for the allocation of resources and assessment of the segments'
results. Amounts presented in the internal reporting process are measured using the same policies as those followed
in these consolidated financial statements prepared in accordance with the EU IFRS.
3.5 Valuation of items denominated in foreign currencies
Functional currency
Items included in the financial statements of individual Group companies are measured in the currency of the primary
economic environment in which a given company operates (the “functional currency”). The consolidated financial
statements are presented in the Polish zloty, which is the functional currency of the Parent Company and the
presentation currency of the Group.
Transactions and balances
Transactions expressed in foreign currencies are translated into the functional currency according to the exchange rate
applicable on the transaction date. Any currency exchange gains or losses arising on settlement of such transactions
or on accounting measurement of monetary assets and liabilities denominated in foreign currencies are recognised in
profit or loss and presented on net basis in other operating income or expenses.
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
15
Monetary assets and liabilities expressed in foreign currencies are translated as at the reporting period end date using
the average market rate effective for the given currency for that date.
Non-monetary assets and liabilities carried at historical cost in a foreign currency are translated using the average
market rate effective for the transaction date. Non-monetary items of the statement of financial position expressed in
foreign currencies which are carried at fair values are translated using the average market exchange rate effective for
the fair value measurement date.
Translation of the Group companies' data
Financial results and items of the statement of financial position of all entities, none of which conducts operations in a
hyperinflationary economy, whose functional currencies differ from the currency of presentation, are translated into
the presentation currency in the following manner:
– in each presented statement of financial position, assets and liabilities are translated using the average market
exchange rate quoted by the National Bank of Poland for the last day in the reporting period;
– revenue and expenses are translated using exchange rate determined as the arithmetic average
of the average market exchange rates effective for the last day in each month of the financial year; and
– any currency exchange differences resulting from such translation are recognised in other comprehensive
income.
Goodwill and fair value adjustments arising from the acquisition of a foreign entity are treated as assets and liabilities
of the foreign entity and translated at the closing rate on the final day of the reporting period.
3.6 Property, plant and equipment
Property, plant and equipment are stated at acquisition or production cost less accumulated depreciation and potential
accumulated impairment.
Acquisition cost comprises the price for which a given asset was purchased, public charges (in the case of imports) and
expenditure directly attributable to the acquisition of the asset and its adaptation for its intended use, including the
costs of transport, loading and unloading. Rebates, discounts as well as other similar concessions and recoveries
decrease the asset acquisition cost.
Production cost of a tangible fixed asset or a tangible fixed asset under construction includes all the expenses incurred
by the Group during its construction, assembly, adaptation or improvement, incurred until the date on which the asset
became available for use, including any non-deductible VAT and excise duties.
Any subsequent expenditure on replacement of parts of items of property, plant and equipment is capitalised if it can
be measured reliably and it is probable that the Group will derive economic benefits associated with the replaced
items. Repair and maintenance costs are charged to profit or loss as incurred.
Except for land and tangible non-current assets under construction, all items of property, plant and equipment are
depreciated over their estimated useful lives using the straight-line method, taking into account the residual value, if
material. The following groups are depreciated using the following depreciation rates:
• Buildings and structures from 10 to 40 years;
• Plant and equipment from 2 to 10 years;
• Vehicles from 2 to 10 years;
• Other tangible fixed assets from 2 to 20 years.
Leasehold improvements (in relation to rented space) are depreciated over a period which is linked to the duration of
the rental agreement.
Correctness of the applied useful lives, depreciation methods and residual values (except where insignificant) is
reviewed by the Group on an annual basis. Any changes are presented as changes in accounting estimates and their
effect is taken to profit or loss in the period when the estimate changes and in subsequent periods.
Significant components of property, plant and equipment are depreciated based on their estimated useful lives.
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
16
Any gains or losses on the disposal or liquidation of items of property, plant and equipment are determined as the
difference between the revenue from the sale and the carrying amount of the items, and recognised in profit or loss.
Tangible fixed assets under construction are stated at cost or at the amount of the aggregate expenses directly
associated with their production, less impairment. The cost of borrowings contracted to finance tangible fixed assets
under construction increases their value.
3.7 Leases
a) Right-of-use assets
The Group recognizes right-of-use assets on the lease commencement date (i.e. on the day when the underlying asset
is available for use). Right-of-use assets are measured at cost, less total depreciation and impairment losses, adjusted
for any revaluation of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized,
initial direct costs incurred and any lease payments paid on or before the lease start date, less any incentives received.
Unless the Group is sufficiently certain that it will obtain the ownership title to the leased asset at the end of the lease
period, the recognized right-of-use assets are amortized using the straight-line method, over the shorter of the two
periods: estimated useful life of the leased asset or lease period.
Right-of-use assets are subject to impairment.
Right-of-use assets are presented in the statement of financial position as a separate line item.
b) Lease liability
At the lease commencement date, the Group measures the lease liabilities at the amount of the current value of the
future lease payments, remaining to be paid on that date. Lease payment include fixed fees (essentially fixed lease
payments) less any lease incentives due, variable fees that depend on the index or rate, and amounts expected to be
paid under the guaranteed residual value. Lease payments include also the price of the call option (if it can be assumed
with sufficient certainty that the Group will exercise it) and the payment of fines for termination of the lease (if the
lease provides for the option of terminating the lease by the Group). Variable lease payments that do not depend on
an index or rate are recognized as costs in the period in which the event or condition giving rise to the payment occurs.
When calculating the current value of future lease payments, the Group uses the lessee's marginal interest rate
determined on the day the lease starts. After the start date, the amount of the lease liability is increased to reflect
interest and reduced by the lease payments made. In addition, the carrying amount of lease liabilities is remeasured
in the event of a change in the lease period or a change in the principal fixed lease payments.
c) Short-term lease and lease of low-value assets
The Group applies the exemption from recognizing short-term leases to its short-term lease contracts (i.e. contracts
for which lease period is 12 months or less from the commencement date and does not contain purchase option). The
Group also applies an exemption regarding the recognition of leases of low-value assets in relation to its low-value
leases. Lease payments for short-term leases and leases of low-value assets are recognized as costs, using the straight-
line method, over the duration of the lease contract.
3.8 Intangible assets
Intangible assets are stated at acquisition or production cost less accumulated amortisation and impairment.
Any subsequent expenditure on existing intangible assets is capitalised only when it increases the future economic
benefits to be generated by the asset. Other expenditures are taken to profit or loss as incurred.
The period and method of amortisation of intangible assets are reviewed at the end of each financial year. Any changes
are recognised as changes in accounting estimates, and their effect is charged to profit or loss in the period in which
the amortisation rates are changed and in subsequent periods.
Amortisation is calculated over the estimated useful life of intangible assets, using the straight line method. The
amortisation rates applied to intangible assets are as follows:
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
17
• Trademarks 10 years;
• Licences and software from 1 to 20 years.
3.9 Goodwill
Goodwill is not amortised, but it is tested for impairment annually or more frequently if there is any indication of
impairment.
As at the acquisition date, the acquired goodwill is allocated to each of the cash-generating units that will benefit from
the synergies of the business combination, not larger than an operating segment. The accounting policies applicable
to goodwill impairment testing are presented in note 11. Goodwill is expressed in functional currency of the cash-
generating unit and is translated into the functional currency of the Parent Company according to the exchange rate
effective at the reporting period end date.
3.10 Impairment of non-financial non-current assets
As at the end of each reporting period, the Group assesses whether there is any evidence that any of its non-financial
non-current assets may be impaired. If the Group finds that there is such evidence, or if the Group is required to
perform annual impairment tests (in the case of goodwill), the Group estimates the recoverable amount of the given
asset or cash-generating unit to which the asset belongs.
The recoverable amount of an asset or cash-generating unit (“CGU”) is equal to the higher of the asset’s or cash-
generating unit’s fair value less costs to dispose or its value in use. The recoverable amount is determined for individual
assets unless a given asset does not generate separate cash inflows largely independent from those generated by other
assets or asset groups. If the carrying amount of an asset is higher than its recoverable amount, the asset is impaired
and an impairment loss is recognised up to the established recoverable amount. The impairment loss is allocated in
the following order: first, the carrying amount of goodwill is reduced, and then the carrying amounts of other assets of
the cash-generating unit are reduced pro rata. Impairment losses related to assets are disclosed under the cost
categories corresponding to the function of the asset with respect to which impairment has been identified.
As at the end of each reporting period, the Group assesses whether there is evidence that any impairment loss
recognised in the previous periods with respect to a given asset (other than goodwill) or CGU is no longer necessary or
should be reduced. If such evidence exists, the Group measures the recoverable amount of the given asset or CGU.
3.11 Borrowing costs
Borrowing costs that are directly attributable to acquisition or production of assets which take a substantial period of
time to become available for their intended use, are capitalised (unless immaterial) as part of the cost of tangible
non-current assets or intangible assets, as appropriate, until such assets become available for their intended use.
3.12 Financial assets
Upon initial recognition, financial assets are measured at fair value of the consideration given plus transaction costs,
with the exception of financial assets at fair value through profit or loss in the case of which the transaction costs are
charged to profit or loss. Purchases and sales of financial instruments are recognised as at the date of the transaction.
Trade receivable without a significant financing element is initially measured at the transaction price at the date of the
transaction.
Financial assets are derecognised when the rights to receive cash flows from these assets have expired or have been
transferred and substantially all risks and rewards incidental to ownership of such assets have been transferred. If
there has been no transfer of substantially all the risks and rewards of the asset, the asset is derecognised when the
Group loses control over the asset.
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
18
The Group classifies its financial assets to the following categories:
a) measured at amortized cost;
b) measured ad fair value through profit or loss;
c) measured at fair value through other comprehensive income.
The classification depends on the Group's business model objective for its financial assets as well as the characteristics
of contractual cash flow from those instruments. For financial assets, reclassification is performed, if and only if the
entity's business model objective for its financial assets has changed.
a) Financial assets measured at amortized cost
Financial assets held to receive contractual cash flows, which include only repayment of principal amount and interest,
are measured at amortised cost. The Group classifies trade receivables and cash and cash equivalents into this category
of financial assets. Interest revenue (for receivables with a deadline for repayment of over one year) are determined
using effective interest rate method and recognized as “interest income” in statement of profit or loss. Impairment
losses on trade receivables are recognised in line with the accounting policy described in note 3.13 and are recognized
in cost of sales.
As of 31 December 2022 and 2021 the Group did not held any assets qualified within the remaining two categories, i.e.
(b) measured ad fair value through profit or loss, and (c) measured at fair value through other comprehensive income.
3.13 Impairment of financial assets
The Group performs individual and group analysis of impairment of trade receivables.
Receivables are analysed individually when there is an objective evidence of impairment that may have a negative
effect on the amount of future cash flows. Significant objective conditions include, for example, taking legal action
against a debtor, serious financial problems of the debtor, significant overdue payments.
In the case of short-term trade receivables analysed in groups, which do not have a significant financing element, the
Group applies the simplified approach required in IFRS 9 and measures impairment losses in the amount of credit
losses expected throughout the lifetime of the receivable from its initial recognition. The Group utilizes provision matrix
where a fixed provision rate applies depending on the number of days that a trade receivable is outstanding.
For the purpose of estimation of the expected credit losses, trade receivables are grouped on the basis of credit risk
characteristics (separate groups were determined for certain distribution channels – receivables from export
customers, network customers, wholesale customers and individual customers). For each Group entity, customers
credit non-performance analysis was performed for the last 3 years, to determine the general non-performance ratios.
These ratios are determined for the following ranges:
• not yet due;
• past due under 30 days;
• past due from 30 to 60 days;
• past due from 60 to 90 days;
• past due over 90 days.
Historical data on receivables referred to court and written-down as well as information about share of amounts
received in each time range indicated above, are used in determination of non-performance ratio for each time range.
Other factors, such as insurance of receivable or expected impact of future events, are also taken into consideration.
Impairment write-down is estimated considering non-performance ratios, adjusted for expected impact of future
events and based on balance of outstanding receivables as of the balance sheet date, for each of the time ranges
indicated above.
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
19
3.14 Inventory
Inventory includes goods for resale and assets for expected returns.
Goods for resale are measured at the costs of acquisition not higher than net realisable value.
Net realisable value is equal to the estimated selling price of an item of inventory less any costs of completion and
costs necessary to make the sale.
Inventory decrease is measured based on average prices, i.e. determined as weighted average prices of individual
goods for resale.
The assets for expected returns, (i.e. value of goods which are expected to be returned by customers in accordance
with the right provided to customers in the agreement or under the binding laws and regulations - please refer to
revenue recognition policy in note 3.23) are estimated based on historical data, including ratio of returns from
customers to revenue from sales for the period of last 3 years. Estimated value of these assets offsets the costs of
goods sold.
The amount of an impairment loss is calculated based on rotation of individual items of goods for resale and it depends
on the ratio of inventory level and the quantity of goods sold over the last 12 months. Items for which inventory level
exceeds sales expected for the 2-years period are written off, but the impairment write-off never amounts to 100%.
Inventory impairment is recognised in relation to goods which are in the permanent offer of the Group due to the need
to obtain reliable historical data in terms of actual data over a longer period of time. New products are excluded from
the calculation of impairment loss, due to the period required to place the new product on the market and lack of
sufficient historical data for further analysis.
Impairment losses on inventory are recognised in cost of sales.
3.15 Cash and cash equivalents
Cash and cash equivalents disclosed in the statement of financial position include cash at bank and in hand as well as
highly liquid current financial assets whose original maturity does not exceed three months and which are readily
convertible into specific cash amounts and subject to insignificant risk of fluctuation in fair value.
3.16 Equity
Equity is disclosed in the accounting records divided into categories, in accordance with the rules set forth in applicable
laws and the provisions of the Company's Articles of Association.
The particular categories of equity are:
• share capital of the Company – stated at its par value as specified in the Company's Articles of Association and
entered in the court register,
• share premium is stated in the proceeds from the issue of shares in the amount exceeding the par value of
shares, less transactions costs associated with the public share issue,
• reserve capital for buyback of own shares is created based on the resolution of General Shareholders’ Meeting,
• foreign operations currency translation differences,
• other capitals include actuarial profits and losses arising from the actuarial valuation of provisions for pensions
and related benefits,
• retained earnings – comprising profit/(loss) distributions, undistributed profit/(loss), and net profit/(loss) for
the reporting period to which given financial statements relate.
Transaction cost related to the public share issue is taken to equity and reduces the share premium account as at the
share issue date.
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
20
3.17 Bank loan liabilities
Bank loans are initially recognised at fair value less transaction cost. Following initial recognition, bank loans are
measured at amortized cost, using the effective interest method.
3.18 Trade and other payables
Trade payables are initially recognised at fair value, and subsequently, where the discount effect is material, they are
measured at amortised cost using the effective interest method.
Other liabilities include liabilities arising from returns of goods from customers (in accordance with the right provided
to customers in the agreement or under the existing laws and regulations - please refer to revenue recognition policy
in note 3.23). Value of these liabilities is estimated based on historical data, including ratio of returns from customers
to revenue from sales for the period of last 3 years. At the same time, the Group recognizes in inventories the asset
for goods which the customers are expected to return, with the offsetting entry to cost of goods sold (see note 3.14).
Based on the provisions of the European Parliament and applicable laws, e.g. on waste electrical and electronic
equipment The Company, as an entity that places electrical and electronic equipment, batteries and accumulators,
packaging and products, i.e. oils or tires, on the market, is subject to the extended producer responsibility system,
under which the producer's responsibility for the product applies at the stage of the product's life cycle when it
becomes waste. The Parent Entity is obliged to finance a system for collecting and recycling waste generated from
products and packaging introduced by it. These obligations are fulfilled by concluding an agreement with Recovery
Organizations. Costs arising from these contracts are recognized throughout the period and settled at the end of the
financial year after receipt of the final invoice.
According to the regulations of European Parliament and other laws in force, i.e. EU Waste Electrical and Electronic
Equipment Act, the Company, as entity that places electrical and electronic equipment, batteries, containers and
products such as oils and tires on the market, is subject to Extended Producer Responsibility, under which it is
responsible for the products at the stage when it becomes a waste. The Parent Company is obliged to finance a system
for collecting and recycling waste generated from products and packaging introduced by the Company. These
obligations are fulfilled by concluding an agreement with Recovery Organizations. Costs arising from these contracts
are recognized throughout the period and settled at the end of the financial year after receipt of the final invoice.
3.19 Deferred revenue
Deferred income includes mainly:
• the equivalent of funds received or due from contractors for services to be performed in the next reporting
periods;
• cash (including government subsidies) received to finance the purchase or production of fixed assets under
construction, settled in parallel to the depreciation write-offs of fixed assets financed from these sources.
Deferred income is presented in the consolidated statement of financial position in liabilities in the line "trade and
other liabilities".
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
21
3.20 Current and deferred income tax
Mandatory decreases of profit include current and deferred income tax.
• Current tax
Current tax expense is calculated based on the taxable profit for the given reporting period. Tax expense is calculated
based on tax rates applicable during the fiscal year in question.
• Deferred tax
Deferred tax assets and liabilities are determined based on temporary differences between the accounting and tax
values of assets and liabilities.
Deferred tax assets are recognised only if it is probable that the Group will have future taxable profits allowing for
utilisation of the temporary differences and deduction of the tax losses. Deferred tax assets are determined as the
amount of income tax recoverable in the future in respect of deductible temporary differences which will reduce future
income tax base and any deductible tax loss, determined in accordance with the prudence principle.
The amount of deferred tax assets and liabilities is determined using income tax rates which will be effective when a
deferred tax asset is utilised or a deferred tax liability arises.
Deferred tax assets and liabilities have been offset at the level of individual Group members, as at this level the criteria
of IAS 12 “Income taxes” with respect to offsetting deferred tax assets against deferred tax liabilities were met.
A deferred tax liability is recognised for temporary differences associated with investments in subsidiaries
and jointly-controlled entities, except where the Group controls the reversal of such temporary differences and it is
probable that such differences will not reverse in the foreseeable future.
3.21 Liabilities from employee benefits
• Post-employment benefit plan – the defined contribution plan
The Parent Company participates in the state post-employment benefit plan by paying an appropriate percentage of
an employee’s gross pay as a contribution to the Social Insurance Institution (ZUS). This plan is a defined contribution
plan. The contributions are expensed as paid.
From 2019, the Parent Company participates also in the Employee Capital Plans program by paying the appropriate
percentage of gross pay as a contribution. This program is a defined contribution program and the contributions paid
are recognized as an expense when incurred.
Subsidiaries also participate in state post-employment benefit plans by paying contributions to the equivalents of ZUS
in the countries where they are based (Romania, China). These plans are also defined contribution plans. The premiums
paid are recognized as an expense when incurred.
• Post-employment benefit plan - the defined benefit plan (retirement severance pays) and other
benefits
In accordance with the Labour Code and applicable remuneration systems and rules, employees of the Group
companies are entitled to death benefits and retirement severance pays. Death benefits are one-off benefits paid to
the family of an employee, following the employee's death. Retirement severance pays are one-off benefits paid when
an employee retires. The plan is fully financed by the Group. The amount of a retirement severance pay or death
benefit depends on the length of employment and average remuneration of a given employee. The Group accrues for
future retirement severance pay and death benefit obligations in order to attribute costs to the periods to which they
relate.
The present value of such obligations is determined by an independent actuary using the projected unit credit method.
Accrued liabilities are equal to the discounted future payments, taking into account the employee turnover, and relate
to the period until the end of the reporting period. Demographic information and information on staff turnover are
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
22
based on historical information. Actuarial gains and losses are recognised in profit or loss, except for actuarial gains
and losses recognised in other comprehensive income.
In countries where the subsidiaries are based, there are no requirements for the payment of retirement benefits similar
to the Labour Code in Poland, and there are no internal regulations that would grant employees the right to such
payments.
3.22 Provisions
Provisions are created when the Group has an obligation (legal or customarily expected) resulting from past events
and when it is probable that the discharge of this obligation will result in an outflow of economic benefits, and the
obligation can be measured reliably.
A provision is recognised as a reliable estimate of the amount required to settle the existing obligation, made as at the
end of the reporting period taking into account the risks and uncertainties associated with the obligation.
In particular, a provision is created for the expected returns and complaints. The provision for returns is estimated
based on the actual quantity of goods sold over the last 12 months period and taking into consideration the defined
failure ratio and average cost of servicing customer complaints. Parameters required for calculation of this provision,
for the period of previous 3 years, are updated on an annual basis.
3.23 Recognition of revenue
Revenue is recognised at fair value of consideration received or receivable, net of VAT, returns, rebates and discounts.
The Group recognizes revenue from contracts with customers when all of the following five criteria are met:
• the contract has been approved (in writing, orally, or in accordance with other customary business
practices) and the parties are committed to perform their obligations in the contract
• each party’s rights regarding the goods or services to be transferred can be identified
• the payment terms for the goods or services to be transferred can be identified
• the contract has commercial substance (i.e. the risk, timing or amount of the vendor’s future cash flows
is expected to change as a result of the contract)
• it is probable that the consideration for the exchange of the goods or services that the vendor is entitled
to will be collected.
In particular, revenue from sales of goods is recognized in accordance with rules described above. The sales agreement
with customer contains only one performance obligation – obligation to deliver goods to customer, therefore revenue
is recognized at the specified point in time. The entity recognizes revenue when the goods are transferred to the
customer. The transfer of control over an asset occurs when the asset is transferred to the customer.
Revenue from sales of goods include transportation services, provided by external parties, costs of which are incurred
by the customers, in case the Group is responsible for organizing the transportation and bears the risks during the
transport.
Some contracts with customers contain elements of variable consideration, arising from rebates granted to customers,
including these tied to achieving a set level of turnover. In accordance with requirements of IFRS 15, the group
estimates amounts of rebates owned to customers and recognizes these rebates as an offsetting entry to revenues
from sales and as a trade liability.
Some contracts with customers contain right to return goods. In accordance with the applicable laws and regulations,
the customer has a right to withdraw from the purchase agreement within 14 days from the date of delivery of goods.
This right applies to customers who purchase goods at internet store toya24.pl and other shopping portals. In addition,
the Group extends the right of return of purchased goods, within limited period of time, to some of its customers. The
Group estimates the potential liability arising from these rebates and if the estimated liability is material, the Group
recognizes this amount as an offset to revenues from sales and as a liability due to expected returns in “trade liabilities”
line (note 3.18).At the same time, the group recognizes the estimated amount of inventories to be returned by the
customers and recognizes this amount as inventory and offset to costs of goods for resale sold (note 3.14).
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
23
3.24 Other operating income and expenses
Other operating income and expenses include income and expenses arising from activities that are not the Company's
core operating activities, e.g. profits or losses on the sale or liquidation of tangible fixed assets, written-off receivables,
penalties and fines, donations.
3.25 Financial income and expenses
Financial income and expenses are related to the financing of the Company’s operations and include, in particular,
interest and commissions.
3.26 Dividends
The obligation to pay dividends is recognised when the shareholders’ right to receive such dividends is approved.
4. Foreign currencies used in preparation of these financial statements
Foreign currency items of the statement of financial position were translated using the following exchange rates:
Currency
31 December
2022
31 December
2021
1 EUR
4.6899
4.5994
1 USD
4.4018
4.0600
1 CNY
0.6348
0.6390
The following exchange rates were used to translate items from the statements of financial position of subsidiaries
from the functional currency to the presentation currency, representing the arithmetic average of the current average
exchange rates announced by the National Bank of Poland on the last day of each month in the period from January
to December 2022 and 2021, respectively:
Currency
31 December
2022
31 December
2021
1 RON
0.9475
0.9293
1 CNY
0.6348
0.6390
The following exchange rates were used to translate the financial results of subsidiaries and the statement of cash
flows from the functional currency to the presentation currency, representing the arithmetic mean of the current
average exchange rates announced by the National Bank of Poland on the last day of each month in the period from
January to December 2022 and 2021, respectively:
12 months ended on 31
December
12 months ended on 31
December
Currency
2022
2021
1 RON
0.9501
0.9239
1 CNY
0.6619
0.5664
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
24
5. Material accounting estimates and judgements
Estimates and judgements are verified on an ongoing basis. Estimates and judgements used during the preparation of
the consolidated financial statements are based on historical experience as well as analyses and expectations of future
events which, to the best knowledge of the Management Board of the Parent Company, are believed to be reasonable
under the circumstances.
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by
definition, rarely equal the actual results. The estimates and assumptions that involve a significant risk of the necessity
to make a material adjustment to the carrying amounts of assets and liabilities during the current or following financial
year are outlined below.
• Revenue recognition – variable consideration and returns
Some contracts with customers contain elements of variable consideration, arising from rebates granted to customers,
including these tied to achieving a set level of turnover.
In accordance with IFRS 15, where a contract contains elements of variable consideration, the entity will estimate the
amount of variable consideration to which it will be entitled under the contract in exchange for transferring promised
goods or services to the customer. Variable consideration is only included in the transaction price if, and to the extent
that, it is highly probable that its inclusion will not result in a significant revenue reversal in the future when the
uncertainty has been subsequently resolved. The Group estimates the potential liability arising from rebates granted
to customers, and if the estimated liability is material, the Group recognizes this liability as an offset to revenues from
sales and as a trade liability. At the end of the financial year, the rebates were largely settled.
• Useful lives and depreciation rates for property, plant and equipment
The Group’s Management Board determines estimated useful lives and depreciation rates for property, plant and
equipment. The estimates are based on the projected useful lives for individual assets. The estimates may change
materially as a result of new technological solutions emerging on the market, plans of the Parent Company’s
Management Board, or intensity of use. The Management Board increases or decreases a depreciation rate for a given
asset if its useful life proves shorter or longer, respectively, than expected, and revalues technologically obsolete
assets, and assets which are not of strategic importance and whose use has been discontinued. Property, plant and
equipment value and depreciation are described in note 8.
If the actual useful lives of property, plant and equipment had been shorter by 10% than the Management Board's
estimates, the depreciation of property, plant and equipment would have been higher by PLN 565 thousand as at
31 December 2022, and PLN 500 thousand as at 31 December 2021.
• Lease period for contracts concluded for an unspecified period of time
The Group is a party to contracts with an indefinite term. When determining the lease period, the Company determines
the period of contract enforceability. Leasing ceases to be enforceable when both the lessee and the lessor have the
right to terminate the contract without having to obtain permission from the other party without incurring more than
insignificant penalties. The Company assesses the significance of broadly understood penalties, meaning that apart
from contractual or financial matters, it also takes into account all other significant economic factors discouraging the
termination of the contract (e.g. significant investments in leased asset, availability of alternative solutions, relocation
costs). If neither the Company as the lessee nor the lessor incurs a significant penalty for termination (broadly
understood), leasing ceases to be enforceable and its period is a termination notice period.
• Lessee’s marginal interest rate
The Group is not able to easily determine the interest rate for some lease contracts, which is why it uses the lessee's
marginal interest rate when measuring the lease liability. This is the interest rate that the Company would have to pay
to borrow (for a similar period, in the same currency and with similar collateral) the funds necessary to purchase an
asset with a similar value as the right-of-use asset in a similar economic environment.
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
25
• Provisions
As at each end of a reporting period, the Management Board of the Parent Company makes material estimates of
provisions:
‐ provisions for guarantees and complaints – estimated level of the ratio used to perform calculations in
accordance with the policy described in note 3.22; This ratio was determined on the basis of historical
costs and claims and is verified on a regular basis through reference with actually incurred costs; for
details on the amount of the provision, see note 22;
‐ other provisions resulting from claims brought against the Group – the values are determined taking into
consideration the probability of having to pay the obligation and the amount of potential claim.
• Write-downs of inventories to net realizable value
When determining the amount of the inventory write-down, the Company analyses the rotation of goods. The
estimated average period during which the product is sold, and beyond which a write-down is created in accordance
with the policy described in note 3.14; for details on the amount of the write-down, see note 12.
• Expected credit losses
The Group utilizes provision matrix to estimate expected credit losses in relation to trade receivables. For the purpose
of estimation of the expected credit losses, trade receivables are grouped on the basis of credit risk characteristics.
Historical data regarding credit losses, adjusted for expected impact of future events, is used by the Group in estimation
of the expected credit losses, in accordance with the policy described in note 3.13; for details on the amount of the
write-down, see note 13.
In case of individual analysis, the quality of the premises on the basis of which the decision is made to write-down a
given receivable is assessed. Important objective reasons for write-down include overdue payments, which, in
accordance with the concluded insurance contract, make it necessary to transfer such a claim for recovery. The reason
for including the client in an individual analysis may also be learning about the debtor's serious financial problems.
6. Financial risk management
The Group’s business activities expose it to a number of various financial risks, such as market risk (including foreign
exchange risk and the risk of fair value or cash flow changes as a result of interest rate movements), credit risk and
liquidity risk. The Group’s overall risk management programme is designed to mitigate the potential effect of risk on
the Group’s financial performance. The Group does not use derivatives to hedge against those risks.
The Management Board defines overall risk management rules as well as the policy for specific areas such as credit risk
or investing liquidity surpluses.
6.1 Market risk
Foreign exchange risk
The Group purchases significant amounts of goods from foreign suppliers, located primarily in China, at prices
denominated in foreign currencies, particularly in CNY and USD. As at 31 December 2022, trade payables in USD
represented 2% of the total trade payables and trade payables in CNY represented 84% of total trade payables (as at
31 December 2021 – payables in USD represented 6% of that balance and payables in CNY represented 77% of that
balance). CNY is the functional currency for subsidiaries in China.
As at 31 December 2022 and 31 December 2021, the Group has no loan liabilities denominated in foreign currencies.
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
26
As at 31 December 2022, cash in foreign currencies (USD and EUR) represented 37% of the total cash, cash in CNY
represented 51% of total cash and cash in RON represented 9% of total cash (as at 31 December 2021 – cash in USD
and EUR represented 28% of the total balance, cash in CNY represented 58% of the total balance and cash in RON
represented 12% of the total balance).
35% of the Group’s revenue is generated from exports (sales outside markets where the Group has its entities) and
16% of the Group’s revenue is generated in local markets in China and Romania, at prices denominated in foreign
currencies — in USD, EUR, CNY and RON. As at 31 December 2022, trade receivables in USD represented 32% of the
total trade receivables (30% as at 31 December 2021) and trade receivables in EUR represented 1% of the total trade
receivables (1% as at 31 December 2021). Moreover, as at 31 December 2022, 16% of trade receivables are
denominated in CNY, due to sales on the local market in China (29% as at 31 December 2021) and 15% of trade
receivables are denominated in RON due to sales in the local market in Romania (15% as at 31 December 2021). CNY
and RON are functional currencies for subsidiaries in China and Romania.
There is a risk that future fluctuations of exchange rates may have a negative or positive effect on the Group's financial
performance. Recent changes in global economy could have had and still can have negative impact on exchange rates.
So far, the Group has not used derivative financial instruments to hedge against the results of future changes in
exchange rates.
The sensitivity of the gross profit to an increase in exchange rates at the end of the current and previous financial year
is presented below. The sensitivity is determined as a result of the conversion of the impact of the higher / lower
exchange rate on the revaluation of balances of trade and other receivables and trade and other payables expressed
in currencies that are not functional currencies for individual entities, with other conditions unchanged.
10% currency rate increase as of
31 December 2022
USD
EUR
CNY
TOTAL
Trade and other receivables
4,585
121
476
5,182
Trade and other payables
(2,157)
1
(120)
(2,276)
TOTAL impact on the 2022 result
2,428
122
356
2,906
10% currency rate increase as of
31 December 2021
USD
EUR
CNY
TOTAL
Trade and other receivables
3,209
50
-
3,259
Trade and other payables
(2,122)
(2)
(268)
(2,392)
TOTAL impact on the 2021 result
1,087
48
(268)
867
Risk of interest rate changes affecting cash flows and fair values
As at 31 December 2022 and 31 December 2021 the Group held cash at bank accounts with a variable interest rate,
which exposes the Company to the risk of interest rate changes affecting cash flows, however taking into consideration
the amount of interest, the risk is insignificant. The group held no other interest-bearing assets.
The Group’s policy envisages the use of bank loans bearing interest at variable rates. This exposes the Group to the
risk of interest rate changes affecting its cash flows. As at 31 December 2022, all liabilities under bank loans bear
interest at variable rates (which was also the case as at 31 December 2021).
The Group monitors its exposure to the risk of interest rate changes affecting its cash flows and fair values. The Group
runs simulations of various scenarios, taking into consideration refinancing, roll-over of the existing positions, and
alternative financing. The Group uses these scenarios to assess the impact of a change in interest rates on its financial
performance. Simulations are run for bank deposits and liabilities, which represent the largest items exposed to
interest rate risk.
The below sensitivity analysis of the Group’s cash flows to interest rate risk was prepared for financial instruments
based on variable interest rates. The financial instruments held by the Group were linked to WIBOR rates. The impact
of interest rate fluctuations on the financial result was calculated as the product of liability balances as at 31 December
2022 and the assumed WIBOR variance.
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
27
+20 basis points
-20 basis points
Effect on profit before income tax
Effect on profit before income tax
Financial liabilities
Variable interest rate loans
(164)
164
Total for 2022
(164)
164
+20 basis points
-20 basis points
Effect on profit before income tax
Effect on profit before income tax
Financial liabilities
Variable interest rate loans
(194)
194
Total for 2021
(194)
194
The Group does not use derivatives to hedge against the risk of interest rate changes affecting its cash flows and fair
values.
6.2 Credit risk
Credit risk arises from cash deposited in bank accounts as well as credit exposures to customers, which also includes
unsettled trade receivables.
Credit risk relating to bank deposits is considered by the Management Board as low because the Group cooperates
with renowned financial institutions which enjoy premium credit ratings (Bank Handlowy w Warszawie S.A., mBank
S.A. and BNP Paribas Bank Polska S.A.) in Poland, Citi Bank, Agricultural Bank, Industrial and Commercial Bank of China
and Bank of Ningbo in China and BRD Groupe Societe Generale and Banca Transilvania in Romania).
In the opinion of the Management Board, with regard to credit exposures to Group’s customers, the concentration of
credit risk is not significant. The Group sells its products to 2 key customer groups: retail chains and wholesale
customers (including wholesalers, distributors and authorised retail stores). The Group sells its products on the Polish
and foreign markets – mainly China, countries in Central, Eastern and Southern Europe (Romania, Hungary, the Czech
Republic, Germany, Balkan countries, Russia, Ukraine, Belarus, Moldova) as well as Arabic states, south Africa, Angola
and Thailand.
The table below presents the Group's sales structure by customer group and market:
2022
2021
Local markets – wholesale market (*)
48%
48%
Local markets – chains (*)
10%
11%
Export sales
35%
35%
Retail sales
7%
6%
Total
100%
100%
(*) local markets mean sales in countries where the Group has its entities, i.e. in Poland, Romania and China
As regards sales to retail chains, the Group sells its products to the largest chains in Poland and Romania. Credit
exposures in this customer group are not evenly distributed as 2 key retail chains in Poland jointly account for
approximately 77% of sales made through this particular channel. Credit risk exposure to retail chains is considered by
the Company as low as most of them are reliable and financially transparent customers with an established market
position and a sound payment history.
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
28
In the area of wholesale distribution, the Group has established cooperation with a few dozen authorised distributors,
a few dozen wholesalers across the country and authorised retail stores, as well as with wholesalers in Romania and
China. In 2022, 75% of sales in this group was executed to approx. 68 customers (63 customers in 2021). The Group
pursues a policy of reducing credit exposures to wholesale customers with the use of a credit limit mechanism. The
limits are set for each customer based on a detailed assessment of its financial performance, market position, payment
discipline and the overall situation in the sector. The utilisation of credit limits is monitored on a regular basis.
A transaction exceeding the credit limit may only be executed upon authorisation by authorised persons in accordance
with an internal credit policy.
The Group mitigates its credit risk by having trade receivables insured in a renowned insurance company. The insurance
covers receivables from the customers of the Parent Company. As at 31 December 2022, 56% of the short-term trade
receivables were insured (33% as at 31 December 2021). This applies to customers who have been granted an individual
limit and customers covered by the so-called automatic limit, up to the amount specified in the insurance contract.
Under the insurance contract, the deductible is typical for such contracts.
The Group also mitigates credit risk through the implementation in its Parent Company of an effective risk management
system integrated with SAP, supporting the maintenance of proper payment discipline of the Company’s customers.
It should be stressed that sales for the customers who are not in a stable and predictable financial condition is realised
based on advance payments.
The maturity structure of receivables and details on past due receivables are presented in note 13.
The credit quality of financial assets not being either past due or impaired can be estimated by reference to external
credit ratings or to historical information on the counterparty’s defaults. The Parent Company’s cash is held in banks
with BBB and A- ratings (EuroRating agency), and the cash of subsidiaries — in banks with Fitch BBB+ and BB+ rating
(Romania) and Fitch A, BBB+ and Moody’s Baa2 rating (China).
With respect to trade receivables, the Group does not have external ratings, but it monitors counterparties’ payment
delays ongoing basis.
The maximum credit risk exposure is approximately equal to the book value of trade receivables,
net of receivables insured and cash and cash equivalents. As at 31 December 2022, the maximum credit risk exposure
is PLN 73,075 thousand (31 December 2021: PLN 82,526 thousand).
6.3 Liquidity risk
The Management Board of the Parent Company believes that the Group’s liquidity is secured for the foreseeable
future. The Group follows a prudent liquidity risk management policy, which focuses on maintaining an adequate level
of cash and securing the ability to use the credit facilities. The management monitors the level of current liabilities and
current assets, as well as current cash flows of the Group. A significant increase in the value of inventories is in line
with the adopted liquidity management policy and enables the continuity of sales in the event of delays in the supply
chains.
Key items analysed for the purpose of monitoring of the liquidity risk are as follows:
31 December
2022
31 December
2021
Current assets
486,208
516,820
Current liabilities
184,574
272,169
2022
2021
Cash flow from operating activities
55,508
(1,547)
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
29
The table below presents financial liabilities of the Group by maturities, which are determined based on contractual future payment dates, uniform for each group of liabilities.
The figures presented below represent undiscounted contractual cash flows.
Due date:
up to 3 months
4-6 months
7-12 months
2-3 years
4-5 years
More than 5
years
Total
Loans
25,150
5,825
39,893
18,477
-
-
89,345
Trade and other payables
65,030
20
17,934
-
-
-
82,984
Lease liabilities
2,434
2,399
4,602
8,288
3,718
8,119
29,560
Warranty liability
539
-
-
-
-
-
539
As at 31 December 2022
93,153
8,244
62,429
26,765
3,718
8,119
202,428
Loans
110
-
89,614
10,358
-
-
100,082
Trade and other payables
118,622
18,068
1
-
-
-
136,691
Lease liabilities
3,145
2,357
4,659
7,927
5,257
10,328
33,673
Warranty liability
529
-
-
-
-
-
529
As at 31 December 2021
122,406
20,425
94,274
18,285
5,257
10,328
270,975
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
30
6.4 Capital management
The Management Board of the Parent Company defines capital as the Group’s equity. The equity held by the Parent
Company meets the requirements provided for in the Polish Commercial Companies Code. There are no other capital
requirements imposed by external regulations.
The Group’s capital management activities are aimed at protecting the Group’s ability to continue its operations so as to
ensure a return on investment for the shareholders and benefits for other interested parties, as well as maintenance of
the optimum capital structure to lower the cost of capital. The Group also follows a rule that non-current assets are to
be fully financed by equity.
31 December 2022
31 December 2021
Non-current assets
104,603
85,540
Equity
370,694
300,678
In accordance with the concluded loan agreements with the banks, the Parent Company is required to maintain the equity
ratio (the ratio of equity to total assets) at a fixed level.
31 December 2022
31 December 2021
Equity
370,694
300,678
Total assets
590,798
602,360
Equity ratio
63%
50%
In the period covered by these consolidated financial statements, the Group implemented the above objective.
7. Financial instruments
As at 31 December 2022
Financial assets
Financial liabilities
Measured at amortised cost
Measured at amortised cost
Trade receivables
82,059
-
Cash
38,836
-
Trade and other payables
-
85,339
Loans
-
82,167
Lease liabilities
-
25,934
TOTAL
120,895
193,440
As at 31 December 2021
Financial assets
Financial liabilities
Measured at amortised cost
Measured at amortised cost
Trade receivables
66,506
-
Cash
38,855
-
Trade and other payables
-
149,943
Loans
-
96,953
Lease liabilities
-
27,584
TOTAL
105,361
274,480
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
31
Revenue and expenses relating to financial assets or financial liabilities not measured at fair value through profit or loss:
12 months ended 31 December 2022
Financial assets
Financial liabilities
Interest income
276
-
Interest expenses
-
9,572
Profits on foreign exchange differences
5,731
6,385
Losses on foreign exchange differences
(4,474)
(7,725)
Establishment of impairment write-downs
(6)
-
Reversal of impairment write-downs
3
-
Total net profit / (loss)
1,530
8,232
12 months ended 31 December 2021
Financial assets
Financial liabilities
Interest income
104
-
Interest expenses
-
1,674
Profits on foreign exchange differences
3,820
3,915
Losses on foreign exchange differences
(2,537)
(7,961)
Establishment of impairment write-downs
(47)
-
Reversal of impairment write-downs
488
-
Total net profit / (loss)
1,828
(2,372)
In the Group's opinion, the fair value of financial assets and liabilities does not differ from their carrying amount, mainly
due to their short maturity. In case of long-term financial liabilities measured at amortized cost, the Company uses market
interest rates, hence the Company estimates that the carrying value of these liabilities also does not differ significantly
from their fair value.
8. Property, plant and equipment
31 December
2022
31 December
2021
Land
2,907
2,907
Buildings and structures
38,656
9,230
Plant and equipment
4,781
4,107
Vehicles
821
646
Other
8,705
7,987
Total
55,870
24,877
Property, plant and equipment not transferred for use
8,802
20,213
Total property, plant and equipment
64,672
45,090
Apart from the property, plant and equipment serving as security in respect of working capital facilities (note 18), there
are no restrictions on the use of property, plant and equipment held by the Group.
In 2022 and 2021, the Group did not capitalise borrowing costs due to the insignificancy of these amounts.
As at 31 December 2022, the Group has no commitments to incur expenses for property, plant and equipment.
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
32
Changes in property, plant and equipment by type
Land
Buildings and
structures
Technical equipment and
machinery
Vehicles
Other
Property, plant and equipment
not transferred for use
Total
Initial value
As at 1 January 2022
2,907
15,188
11,489
3,995
17,770
20,213
71,562
Purchase
-
-
383
586
2,663
22,555
26,187
Liquidation
-
(6)
(1,471)
(1,783)
(3,272)
-
(6,532)
Reclassification
-
31,697
4,207
94
208
(34,013)
2,193
Currency translation differences
-
(1,274)
27
1
27
47
(1,172)
As at 31 December 2022
2,907
45,605
14,635
2,893
17,396
8,802
92,238
As at 1 January 2021
2,907
14,926
11,190
4,347
17,506
738
51,614
Purchase
-
103
124
-
2,335
19,640
22,202
Liquidation
-
-
(632)
(520)
(2,767)
-
(3,919)
Reclassification
-
28
664
-
497
(1,189)
-
Currency translation differences
-
131
143
168
199
1,024
1,665
As at 31 December 2021
2,907
15,188
11,489
3,995
17,770
20,213
71,562
Accumulated depreciation
As at 1 January 2022
-
5,958
7,382
3,349
9,783
-
26,472
Depreciation for the financial year
-
1,011
1,800
287
2,148
-
5,246
Liquidation
-
(3)
(1,459)
(1,628)
(3,266)
-
(6,356)
Reclassification
-
-
2,123
49
-
-
2,172
Currency translation differences
-
(17)
8
15
26
-
32
As at 31 December 2022
-
6,949
9,854
2,072
8,691
-
27,566
As at 1 January 2021
-
5,217
6,229
3,300
10,381
-
25,127
Depreciation for the financial year
-
722
1,626
424
1,894
-
4,666
Liquidation
-
-
(600)
(505)
(2,637)
-
(3,742)
Currency translation differences
-
19
127
130
145
-
421
As at 31 December 2021
-
5,958
7,382
3,349
9,783
-
26,472
Carrying amount
As at 31 December 2022
2,907
38,656
4,781
821
8,705
8,802
64,672
As at 31 December 2021
2,907
9,230
4,107
646
7,987
20,213
45,090
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
33
9. Intangible assets
31 December
2022
31 December
2021
Licences, concessions and patents, including:
3,135
3,108
– software
3,135
3,108
Other - trademarks and industrial designs
328
303
Total
3,463
3,411
Intangible assets under development
1,147
488
Total intangible assets
4,610
3,899
There are no material intangible assets produced internally by the Group.
No security interests on the intangible assets have been created.
Intangible assets under development include licences and software that is being implemented. No impairment was
reported for these assets.
Changes in intangible assets
Software
Other
Intangible assets under
development
Total
Initial value
As at 1 January 2022
6,753
572
488
7,813
Purchase
65
-
1,207
1,272
Liquidation
(99)
-
-
(99)
Reclassification
749
96
(548)
297
Currency translation differences
(6)
-
-
(6)
As at 31 December 2022
7,462
668
1,147
9,277
As at 1 January 2021
5,996
477
441
6,914
Purchase
188
-
559
747
Reclassification
417
95
(512)
-
Currency translation differences
152
-
-
152
As at 31 December 2021
6,753
572
488
7,813
Accumulated amortization
As at 1 January 2022
3,645
269
-
3,914
Amortization for the financial year
780
71
-
851
Liquidation
(99)
-
-
(99)
Reclassification
-
-
-
-
Currency translation differences
1
-
-
1
As at 31 December 2022
4,327
340
-
4,667
As at 1 January 2021
2,826
221
-
3,047
Amortization for the financial year
788
48
-
836
Currency translation differences
31
-
-
31
As at 31 December 2021
3,645
269
-
3,914
Carrying amount
As at 31 December 2022
3,135
328
1,147
4,610
As at 31 December 2021
3,108
303
488
3,899
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
34
10. Right-of-use assets
31 December
2022
31 December
2021
Land
6,685
6,847
Buildings and structures
16,601
16,190
Plant and equipment
1,458
1,978
Vehicles
4,981
6,173
Total
29,725
31,188
Land
Buildings and
structures
Technical
equipment and
machinery
Vehicles
Total
Initial value
As at 1 January 2022
7,112
30,094
3,898
8,318
49,422
New lease contracts
-
1,526
-
771
2,297
Modification of lease contracts
-
5,103
-
36
5,139
Termination of lease contracts
-
(3,245)
-
-
(3,245)
Reclassification
-
-
(2,123)
(71)
(2,194)
Currency translation differences
(35)
329
-
1
295
As at 31 December 2022
7,077
33,807
1,775
9,055
51,714
As at 1 January 2021
6,558
30,024
2,123
5,571
44,276
New lease contracts
27
-
1,775
4,009
5,811
Modification of lease contracts
-
33
-
-
33
Termination of lease contracts
-
-
-
(1,262)
(1,262)
Currency translation differences
527
37
-
-
564
As at 31 December 2021
7,112
30,094
3,898
8,318
49,422
Accumulated depreciation
As at 1 January 2022
265
13,904
1,920
2,145
18,234
Depreciation
133
6,412
520
1,979
9,044
Termination of lease contracts
-
(3,245)
-
-
(3,245)
Reclassification
-
-
(2,123)
(49)
(2,172)
Currency translation differences
(6)
135
-
(1)
128
As at 31 December 2022
392
17,206
317
4,074
21,989
As at 1 January 2021
127
7,044
1,483
1,814
10,468
Depreciation
123
6,710
437
1,565
8,835
Termination of lease contracts
-
-
-
(1,234)
(1,234)
Currency translation differences
15
150
-
-
165
As at 31 December 2021
265
13,904
1,920
2,145
18,234
Carrying amount
As at 31 December 2022
6,685
16,601
1,458
4,981
29,725
As at 31 December 2021
6,847
16,190
1,978
6,173
31,188
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
35
In 2022, the Group concluded and modified the following agreements:
• a lease agreement for office and warehouse space located in China for a period of up to 3 years; the discount
rate used to calculate the lease liability and right-of-use assets at the time of recognition was 4.75%;
• modification of the lease agreement for warehouses in Poland – the lease period was extended as a result of
the annex; right-of-use assets and lease liabilities were increased by PLN 5,091 thousand, and the discount rate
used to calculate the lease liability was 8.93%; moreover, the value of assets and liabilities was increased as a
result of indexation by PLN 12 thousand;
• modification of the car lease agreement – as a result of the change in an interest rate, the expected cash flows
changed, as a result of which the right-of-use assets increased by PLN 36 thousand.
Lease agreements for office space and warehouses in China, concluded in 2020, have been completed.
The reclassification resulted from the purchase made after the end of the lease period in accordance with the terms
provided for in the contracts. As a result, these assets were transferred to the Company's fixed assets.
Lease liabilities are presented in note 21.
11. Goodwill
Goodwill amounting to PLN 830 thousand includes only the goodwill resulting from the acquisitions of Yato Tools
(Shanghai) Co. Ltd. in 2013.
2022
2021
As at 1 January
835
751
Foreign exchange differences
(5)
84
As at 31 December
830
835
Impairment test for goodwill
The Management Board reviews the business performance by geographic areas (locations of subsidiaries) and
distribution channels. The main geographic areas identified include Poland and European countries (except Romania),
Romania (subsidiary in Romania), as well as China and non-European foreign markets (subsidiaries in China). In all these
areas, the Group conducts activities in various distribution channels. Goodwill is analysed by the Management Board at
the geographic areas level. The above goodwill is allocated to subsidiary Yato Tools (Shanghai) Co. Ltd.
The recoverable amount of the cash-generating unit has been determined based on value-in-use calculations for each
operating segment separately. These calculations use pre-tax cash flow projections based on financial budgets covering
a five-year period. Cash flows beyond the five-year period are extrapolated using the estimated growth rates stated
below. The growth rate does not exceed the long-term average growth rate for the tool industry in which the cash-
generating unit operates.
The key assumptions used for value-in-use calculations are as follows:
31 December
2022
31 December
2021
compound annual rate of growth of sales revenue
2%
1%
rate of growth after the forecast period
1.5%
1%
weighted average cost of capital (discount rate)
5.6%
9.5%
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
36
The annual rate of growth of sales revenue was used as the key assumption. The volume of sales in each period is the
main driver for revenue and costs. The compound annual rate of growth of sales revenue is based on past performance.
The long term growth rates used were estimated on a very conservative level. The discount rates used are pre-tax and
reflect specific risks relating to that market.
The recoverable amount calculated on the basis of value in use, using the above assumptions, constitutes approximately
115% of the book value for all segments (148% in 2021). The following changes in key assumptions would remove this
excess in at least one segment (the impact of each assumption was estimated under the assumption that other
assumptions remain unchanged):
• decrease in forecasted revenue growth rate in the next 5 years by 1 percentage point (2021: decrease by 10
percentage points);
• increase in the discount rate by 0.3 percentage point (2021: increase by 2.3 percentage points).
12. Inventory
31 December
2022
31 December
2021
Goods for resale at warehouse and in transit
341,076
368,718
Asset for expected returns from customers
90
538
Total inventories (carrying amount)
341,166
369,256
Revaluation write-down for goods for resale at warehouse to net recoverable amount
4,849
3,157
Goods for resale at warehouse and in transit
346,015
372,413
The table below presents changes in revaluation write-downs to net realizable value on inventory:
2022
2021
As at 1 January
3,157
2,994
Increase
1,744
188
Reversal/utilisation
-
(220)
Currency translation differences
(52)
195
As at 31 December
4,849
3,157
Utilisation and reversal of inventory write-downs made in the current year as well as write-downs made in previous years
were recorded in the financial result and presented as cost of goods for resale sold. Reversal of write-offs resulted from
a decrease in the value of these inventories, which, in accordance with the policy adopted by the Group, should be
written down.
For collaterals established on inventories, please refer to note 18.
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
37
13. Trade and other short-term receivables
31 December
2022
31 December
2021
Trade receivables from related parties
2
1
Trade receivables from third parties
84,802
69,286
Total trade receivables
84,804
69,287
Taxes, custom duties and social security receivables
10,384
20,820
Other receivables from third parties
2,834
2,570
Advances for deliveries of goods for resale
8,524
10,789
Advances for deliveries of property, plant and equipment
337
6,055
Prepayments and deferred costs
1,257
2,024
Total gross receivables
108,140
111,545
Impairment write-downs of doubtful trade receivables
(2,745)
(2,781)
Impairment write-downs of other receivables
(36)
(55)
Total net receivables
105,359
108,709
The average repayment period of receivables is 50 days. For collaterals established on receivables, please refer to note
18.
Changes in gross trade receivables are summarized in table below.
Receivables analysed
in group
Receivables analysed
individually
Total
As at 1 January 2022
66,934
2,353
69,287
Increase
886,268
-
886,268
Interest accrued
1
(1)
-
Receivables written-off
14
(48)
(34)
Receivables classified individually as irrecoverable
(8)
8
-
Collected receivables
(868,152)
(11)
(868,163)
Compensated receivables
(943)
-
(943)
Other changes, including currency translation differences
(1,609)
(2)
(1,611)
As at 31 December 2022
82,505
2,299
84,804
The Group applies a simplified approach and measures the allowance in an amount equal to the expected credit losses
throughout the life cycle using the provision matrix, described in the accounting policies descried in Note 3.13. The
impact of creation and reversal of impairment write-down of trade and other receivables has been included in line
"Expected credit losses". Changes in the write-downs of trade and other receivables are presented in the table below:
2022
2021
As at 1 January
2,781
3,142
Increase
18
47
Utilisation
(49)
-
Reversal
(3)
(488)
Currency translation differences
(2)
80
As at 31 December
2,745
2,781
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
38
The table below presents the ageing structure of receivables, including average expected credit loss ratio for each
overdue period.
31 December 2022
Total
Not overdue
0-30 days
31-60 days
61-90 days
over 90 days
Gross trade receivables
84,804
73,071
5,936
1,246
1,114
3,437
Group analysis
Gross value of trade receivables analysed
on grouped level
82,505
73,071
5,936
1,246
1,114
1,138
Expected credit loss ratio
0,01%-0,05%
0,1-5%
0,7%-25%
0,8%-50%
0,9%-100%
Expected credit losses (impairment loss for
customers analysed at groups level)
(452)
(364)
(49)
(13)
(13)
(13)
Individual analysis
Gross value of trade receivables analysed
on individual level
2,299
-
-
-
-
2,299
Impairment loss on individual customers
(2,293)
-
-
-
-
(2,293)
Total expected credit losses
(2,745)
(364)
(49)
(13)
(13)
(2,306)
Total net trade receivables
82,059
72,707
5,887
1,233
1,101
1,131
31 December 2021
Total
Not overdue
0-30 days
31-60 days
61-90 days
over 90 days
Gross trade receivables
69,287
60,550
4,714
1,542
15
2,466
Group analysis
Gross value of trade receivables analysed
on grouped level
66,934
60,550
4,714
1,542
15
113
Expected credit loss ratio
0.01%-0.05%
0.1-5%
0.7%-25%
0.8%-50%
0.9%-100%
Expected credit losses (impairment loss for
customers analysed at groups level)
(462)
(363)
(68)
(14)
(5)
(12)
Individual analysis
Gross value of trade receivables analysed
on individual level
2,353
-
-
-
-
2,353
Impairment loss on individual customers
(2,319)
-
-
-
-
(2,319)
Total expected credit losses
(2,781)
(363)
(68)
(14)
(5)
(2,331)
Total net trade receivables
66,506
60,187
4,646
1,528
10
135
The individual analysis is carried out in relation to customers for which indicators described in the policy in note 3.13
have been identified, i.e. most often overdue for over 90 days, which results in the customer being transferred for debt
collection. The allowance for expected credit losses for this group of customers is determined taking into account the
terms and conditions of insurance, provided that the customer is subject to insurance, i.e. the allowance includes the
own contribution in accordance with the concluded agreement. In relation to receivables analysed individually, the part
not covered by the write-down relates to the insured receivables.
In relation to the remaining customers, analysed in groups with the use of the provisions matrix, expected credit loss
ratios are determined separately for insured receivables (lower range limits shown in the table above) and uninsured
receivables (main range limits). Expected credit loss ratios are determined separately for each company in the Group.
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
39
14. Cash and cash equivalents
31 December
2022
31 December
2021
Cash in hand and at bank
38,836
38,855
Total cash and cash equivalents
38,836
38,855
Apart from cash disclosed in the statement on financial position, the Parent Company has a separate bank account for
the funds of the Company Social Benefits Fund (ZFŚS) which are presented under other receivables in their net amount
together with liabilities towards the ZFŚS and receivables under loans granted. As at 31 December 2022, these funds
amounted to PLN 1 thousand and as at 31 December 2021 - PLN 50 thousand. The Company may use these funds only
in the manner provided for by the law with regard to the ZFŚS funds.
As a result of implementation of VAT split payment mechanism, the Parent Company has dedicated VAT bank accounts,
where VAT amounts from invoices settled by the vendors of TOYA S.A. will be transferred. Funds collected in these VAT
accounts may only be used for VAT settlements concerning invoices received and settlements of tax liabilities. As at 31
December 2022, the cash balance in these VAT accounts totalled PLN 1,141 thousand (31 December 2021: PLN 570
thousand). In line with the Management Board's judgment, restrictions on the disposition of these funds resulting from
tax regulations do not affect their classification as cash and cash equivalents, as the Company uses them on an ongoing
basis to settle short-term tax liabilities.
Apart from the ZFŚS funds, as at 31 December 2022 and 31 December 2021, the Group did not have any cash of limited
disposability.
15. Additional explanation to the cash flow statement
Reconciliation of changes in balance sheet items as shown in the consolidated statements of financial position and in the
consolidated statements of cash flows:
Adjustments
12 month period ended
31 December 2022
Balance sheet
change
Impact of currency
translation of
foreign subsidiaries
Impact of advances
paid on fixed assets
Actuarial
gains/losses
recognised in
comprehensive
income
Change in
statement of cash
flows
Change in trade and other
receivables
3,349
(2,931)
(5,718)
-
(5,300)
Change in inventories
28,090
300
-
-
28,390
Change in provisions
117
(7)
-
-
110
Change in trade and other
payables
(60,449)
2,297
-
-
(58,152)
Change in employee
benefit liabilities
1,671
85
-
168
1,924
Change in cash
(19)
1,061
-
-
1,042
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
40
Adjustments
12 month period ended
31 December 2021
Balance sheet
change
Impact of currency
translation of
foreign subsidiaries
Impact of advances
paid on fixed assets
Actuarial
gains/losses
recognised in
comprehensive
income
Change in
statement of cash
flows
Change in trade and other
receivables
(35,612)
3,442
6,055
-
(26,115)
Change in inventories
(149,905)
5,217
-
-
(144,688)
Change in provisions
129
(10)
-
-
119
Change in trade and other
payables
79,249
(6,708)
-
-
72,541
Change in employee
benefit liabilities
477
(273)
-
(19)
185
Change in cash
4,894
(2,375)
-
-
2,519
16. Share capital
As at 31 December 2022, the share capital amounts to PLN 7,504,222.60 and comprises 75,042,226 shares with a par
value of PLN 0.1 each.
All of the shares are paid up. The ownership structure and the percentage of the Company's shares held as at
31 December 2022, based on the information provided to the Company by the shareholders, are presented in the table
below.
Name
Status
Number of shares
Type of shares
Par value per
share (PLN)
Par value of the
shares (PLN)
Structure (%)
Jan Szmidt
natural person
28,284,304
ordinary bearer
0.1
2,828,430.40
37.69%
Romuald Szałagan
natural person
9,652,290
ordinary bearer
0.1
965,229.00
12.86%
Generali OFE
legal person
5,001,147
ordinary bearer
0.1
500,114.70
6.66%
Others - share below
5%
not applicable
32,104,485
ordinary bearer
0.1
3,210,448.50
42.79%
TOTAL
75,042,226
7,504,222.60
100.00%
17. Retained earnings and dividend per share
On 28 June 2022, the General Meeting of Shareholders of Toya S.A. approved the financial statements of TOYA S.A. for
2021 and decided to transfer the profit for 2021 in the amount of PLN 63,243 thousand to supplementary capital.
In line with the provisions of the Commercial Companies Code, retained earnings are used to create statutory reserve
funds, to which at least 8% of the profit generated in a given financial year is transferred until the statutory reserve funds
reach at least one-third of the share capital, i.e. in the case of the Parent Company – PLN 2,501 thousand as at
31 December 2022. These statutory reserve funds are exempt from distribution among shareholders and may only be
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
41
used to cover losses. As at 31 December 2022 and 31 December 2021, the supplementary capital was created in the
required amount.
The retained earnings as at 31 December 2022 represent result for the current year, supplementary capital created from
the Parent Company’s profits from previous years, accumulated profits of other companies from previous years and the
result on the buyout of the minority shareholder in the amount of PLN 6,270 thousand.
Dividend paid per share:
12 months ended
31 December
12 months ended
31 December
2022
2021
Dividend paid
-
21,762
Weighted average number of ordinary shares (’000) (*)
75,042
75,042
Dividend per share (PLN)
-
0.29
Management Board of the Company did not provide recommendation on 2022 profit distribution.
18. Loans and borrowings liabilities
31 December
2022
31 December
2021
Bank loan liabilities, including
82,167
96,953
– long-term
17,143
10,049
– short-term
65,024
86,904
The table shows the reconciliation of changes in debt due to bank loans:
Revolving bank
loans
Non-revolving bank
loans
Bank loans TOTAL
As at 1 January 2021
27,141
4,360
31,501
Increase in loans
46,264
19,087
65,351
Interest for the period (note 28)
297
163
460
Interest repaid
(247)
(112)
(359)
As at 31 December 2021
73,455
23,498
96,953
Increase in loans
-
16,554
16,554
Interest for the period (note 28)
6,150
2,004
8,154
Interest repaid
(6,001)
(1,818)
(7,819)
Loan repaid
(31,675)
(31,675)
As at 31 December 2022
41,929
40,238
82,167
- long-term
-
17,143
17,143
- short-term
41,929
23,095
65,024
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
42
Description of loan agreements:
Object and value of agreement
Name of the Bank / covering bonds
/ granting loans
Loan amount as
per agreement as
at 31 December
2022
Amount
outstanding as at
31 December
2022 (*)
Amount
outstanding as at
31 December
2021 (*)
Current interest rate
Date of expiry
1. Overdraft facility agreement No BDK/KR-
RB/000054601/0641/10 of 22 December 2010
Bank Handlowy w Warszawie S.A.
70,000
21,159
29,310
WIBOR 1 M + bank’s margin
15 December 2023
2. Overdraft credit facility agreement No 09/030/19/Z/VV
mBank S.A. with its registered office
in Warsaw
60,000
18,991
30,453
WIBOR 1 T + bank’s margin
30 March 2023
3. Overdraft credit facility agreement No
WAR/8833/20/326/CB
BNP Paribas Bank Polska S.A. with
its registered office in Warsaw
25,000
1,779
13,692
WIBOR 1 M + bank’s margin
15 November 2023
4. Non-revolving loan agreement no WAR/8833/20/327/CB
BNP Paribas Bank Polska S.A. with
its registered office in Warsaw
40,000
40,238(**)
23,498
WIBOR 3 M + bank’s margin
30 September 2024
Total liabilities, of which:
195,000
82,167
96,953
– short-term portion
177,857
65,024
86,904
– long-term portion
17,143
17,143
10,049
(*) the amount used is presented together with interest due and not repaid as at 31 December 2022 and 2021
(**) including PLN 40,000 thousand of the loan used and PLN 238 thousand of accrued and unpaid interest as at 31 December 2022
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
43
During the year ended on 31 December 2022, there were no significant changes to the contractual terms of the loans or
expected cash flows.
The bank margins relating to the loans listed above do not exceed 1%.
The value of mortgage collaterals was determined as a sum of collaterals established for individual banks, in the amounts
required by the banks (in the amount resulting from the agreement). The book value of mortgaged assets was PLN 10,359
thousand as at 31 December 2022 (PLN 10,541 thousand as at 31 December 2021). The value of the assignment of
receivables in the amount of PLN 46,111 thousand (PLN 19,281 thousand as at 31 December 2021) has been determined
at the carrying amounts of the assets provided as security.
The securities apply throughout the term of loan agreements. The Company has limited abilities to dispose of the
mortgaged assets. In the case of assignments of trade receivables, the Company is obliged to refrain from any legal or
actual actions resulting in restrictions on the Company’s ability to dispose of these receivables. In addition, the Company
agreed that throughout the loan period, without the bank's prior consent, it would not grant loans or guarantees to
other entities.
Effective interest rate for loans
The effective interest rates are close to the nominal interest rates calculated in line with the terms of the agreements
described above. As at 31 December 2022, the weighted average cost of loans (excluding commission) was 8.99% (as at
31 December 2021 - 2.88%).
Fulfilment of contractual provisions
As at 31 December 2022, the Group did not default on its debt repayment obligations or on any other of its obligations
under loan agreements in a manner which would result in an acceleration of debt repayment.
Loan agreements require the borrower to maintain its capitalisation and debt ratios at an agreed level throughout the
lending period. If this requirement is not met, the bank has the right to terminate the agreements.
The Group has good relationships with banks, and in its activity to date it had no problems with
renewal of bank loans. Based on this, the Management Board believes that the risk resulting from short-term financing
is not significant.
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
44
19. Trade and other payables
31 December
31 December
2022
2021
Trade payables to related parties
-
-
Trade payables to third parties
82,153
135,277
Total trade payables
82,153
135,277
Tax liabilities
10,280
6,125
Liability due to expected goods returns
146
910
Prepayments received
1,878
12,530
Other payables to third parties
451
455
Deferred income - subsidies received
711
722
Total other current payables
13,466
20,791
Total
95,619
156,068
Advances received represent contractual obligations in accordance with IFRS 15.
An average payables payment period is 45 days.
During the year ended 31 December 2022, the Group recognized revenues in the amount of PLN 12,530 thousand, which
were classified as prepayments at the beginning of the period.
20. Liabilities from employee benefits
31 December
31 December
2022
2021
Provisions for retirement benefits, disability pensions and for death benefits
566
678
Liabilities from employee benefits – non-current portion
566
678
Provisions for retirement benefits, disability pensions and for death benefits
69
46
Payroll liabilities
9,876
8,325
Unused holidays
1,861
1,652
Liabilities from employee benefits – current portion
11,806
10,023
The Parent Company pays retirement benefits, disability pensions and death benefits in accordance with the Labour
Code, in the amount of a one month’s remuneration. The amount of provision for retirement benefits, disability pensions
and death benefits as at 31 December 2022 and 31 December 2021 was estimated by an actuary. The basic assumptions
were as follows:
Assumptions
31 December
2022
31 December
2021
Discount rate (risk-free rate)
6.73%
3.92%
Growth rate of remunerations
- in the first year
9.00%
7.00%
- in the second year
7.00%
5.50%
- in the third year
5.00%
3.50%
- in the subsequent years
3.50%
3.50%
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
45
Assumptions concerning future mortality are determined based on statistics published by the Central Statistical Office
(GUS).
The statement of actuarial gains and losses is presented below.
31 December
2022
31 December
2021
Current value of liability as at 1 January
724
650
Current service cost
69
63
Net interest on net liability
28
10
Actuarial gains or losses, including resulting from:
(168)
19
changes in demographic assumptions
18
63
changes in financial assumptions
(169)
(94)
ex post adjustments of actuarial assumptions
(17)
50
Benefits paid
(18)
(18)
Current value of liability as at 31 December
635
724
Total expenses recognised in profit or loss in respect of future employee benefits amounted to PLN 97 thousand in 2022
and PLN 73 thousand in 2021 and were recognised in administrative expenses. Actuarial losses incurred in 2022
amounted to PLN 168 thousand (in 2021: PLN 19 thousand) and were recognised in other comprehensive income.
Sensitivity analyses of liability under defined benefits (retirement benefits, disability pensions and death benefits) to
changes in main weighted estimates as at 31 December 2022 are as follows:
Assumption
Changes in the
assumption
Increase in the
assumption
Decrease in the
assumption
Technical discount rate
1%
(31)
34
Salaries growth rate in the Company
1%
71
(62)
Turnover ratio
1%
(27)
29
The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In
practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the
sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the
defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been
applied as when calculating the pension liability recognised within the statement of financial position.
The methods and types of assumptions used for preparing the sensitivity analysis did not change compared to the
previous period.
The table below contains the profile of the forecast cash flows in the coming years, by relevant benefits. These values
take into account the nominal amounts paid out and their probability.
Name of benefit
1
st
year
2
nd
year
3
rd
year
4
th
year
5
th
year
6
th
year (and
further)
Retirement benefit
58
8
14
9
65
2,790
Disability pension
3
3
3
3
2
36
Death benefit
12
14
16
18
17
728
Total
73
25
33
30
84
3,554
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
46
21. Lease liabilities
The Group has the right of perpetual usufruct of land and uses warehouses, offices, servers, passenger cars and forklifts
on the basis of rental and leasing contracts. The change in liabilities resulting from these contracts, taking into account
the impact of adoption of IFRS 16, is presented below.
2022
2021
Lease liability as at January 1
27,584
30,789
New lease contracts
2,297
5,785
Modification of the terms of the contract
5,138
33
Settlement of completed contracts
-
(2)
Accrued interest
1,419
1,215
Lease payments (*)
(10,959)
(9,820)
Valuation of contracts in foreign currencies and currency translation differences
455
(416)
Lease liability as at December 31
25,934
27,584
(*) lease payments include net amounts paid, according to invoices, including both capital instalments and interest.
In 2022, the Group concluded new lease agreements, described in note 10.
Undiscounted future cash flows are presented below.
31 December
2022
31 December
2021
up to 1 year
9,435
10,175
1–3 years
8,287
7,927
3–5 years
3,718
5,257
more than 5 years
8,120
10,328
Total
29,560
33,687
The costs recognized in the result for the period in relation to concluded lease agreements are presented below.
2022
2021
Amortization and depreciation
9,044
8,835
Interest
1,419
1,215
Exchange rate differences
64
152
Total
10,527
10,202
During the year ended 31 December 2022, the Group incurred costs in connection with the short-term lease agreements
in the amount of PLN 18 thousand and low-value lease agreements in the amount of PLN 31 thousand. Total cash outflow
from leases in 2022 amounted to PLN 10,784 thousand, excluding VAT (of which PLN 10,735 thousand relates to lease
agreements recognized as right-of-use assets and PLN 49 thousand to short-term lease agreements).
Information on leased assets is presented in note 10.
The maturity analysis of lease liabilities is presented in note 6.3.
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
47
22. Provisions
2022
2021
As at 1 January
1,611
1,482
Provision created
1,737
1,604
Provision utilised
(1,626)
(1,482)
Currency translation differences
6
7
As at 31 December
1,728
1,611
including short-term
1,728
1,611
The provision for guarantee repairs is created in accordance with the policy described in note 3.22. The obligation of the
Company to incur the costs of guarantee repairs results from general provisions on surety and guarantee granted to
certain product groups. It is to be used within less than 12 months, and the amount is estimated based on historical costs
of guarantee repairs borne; thus, the uncertainty towards its value should not have a material impact on the Company’s
future results. Provisions are recognised in the financial result under “costs of goods and materials sold”.
23. Operating segments
Identification of operating and reporting segments
The Management Board of the Parent Company makes decisions related to the Company’s operations from the
perspective of distribution channels and geographical coverage.
The Group specifies four operating and reporting segments for its activities:
• sales on local markets (Poland, Romania) to retail networks;
• sales on local markets (Poland, Romania and China) – wholesale market;
• export sales;
• retail sales.
As part of the retail networks segment, the Group cooperates with large retail networks throughout Poland and Romania.
Wholesale on all markets where the Group holds its entities is conducted through a network of wholesalers, authorised
retail stores and sales representatives. Foreign markets are supported using sales department of the Parent Company
and subsidiaries Yato Tools (Shanghai) Co. Ltd. and Yato Tools (Jiaxing) Co. Ltd. As part of retail sales, sales are mainly
realized through an online store and popular online platforms.
Data analysed by the Management Board of the Parent Company for segment description is consistent with the data
disclosed in the statement of comprehensive income.
The Group did not record revenue from sale to a single external customer exceeding 10% of total sales revenue.
As at 31 December 2022, the Group’s assets amounted to PLN 590,798 thousand, and the Group’s liabilities amounted
to PLN 220,104 thousand and were related only to trading activities. The Management Board of the Parent Company
does not examine the assets of the Group for each segment separately.
The Parent Company has no non-current assets located abroad. Non-current assets of the subsidiaries are located
outside of Poland. The net value of property, plant and equipment located in Romania as at 31 December 2022 is PLN
4,525 thousand and located in China is PLN 42,422 thousand (as at 31 December 2021: Romania – PLN 5,510 thousand,
China – PLN 22,161 thousand).
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
48
12 months ended
31 December 2022
EXPORT SALES
WHOLESALE
MARKET
RETAIL
NETWORKS
RETAIL SALES
TOTAL
Sales revenue
Sales to external customers
266,367
368,988
76,353
50,882
762,590
Total segment revenue
266,367
368,988
76,353
50,882
762,590
Cost of goods sold
Sales to external customers
(182,772)
(256,062)
(53,536)
(27,555)
(519,925)
Total costs of goods sold
(182,772)
(256,062)
(53,536)
(27,555)
(519,925)
Gross profit
83,595
112,926
22,817
23,327
242,665
Gross profit margin
31%
31%
30%
46%
32%
12 months ended
31 December 2021
EXPORT SALES
WHOLESALE
MARKET
RETAIL
NETWORKS
RETAIL SALES
TOTAL
Sales revenue
Sales to external customers
241,889
326,899
76,976
40,973
686,737
Total segment revenue
241,889
326,899
76,976
40,973
686,737
Cost of goods sold
Sales to external customers
(168,055)
(213,624)
(52,118)
(21,533)
(455,330)
Total costs of goods sold
(168,055)
(213,624)
(52,118)
(21,533)
(455,330)
Gross profit
73,834
113,275
24,858
19,440
231,407
Gross profit margin
31%
35%
32%
47%
34%
24. Sales revenue
12 months ended
31 December 2022
12 months ended
31 December 2021
Sales revenue
Sales of goods for resale
762,590
686,737
Total sales revenue
762,590
686,737
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
49
The geographical structure of revenues from sales has been presented below:
12 months ended
31 December 2022
12 months ended
31 December 2021
Sales revenue
Share
Sales revenue
Share
Ukraine
36,499
4.8%
43,079
6.3%
Baltic countries
22,399
2.9%
22,145
3.2%
Hungary
21,096
2.8%
17,213
2.5%
Belarus
20,449
2.6%
18,524
2.7%
Russia
13,162
1.7%
7,950
1.2%
Moldova
11,825
1.5%
9,151
1.3%
Czech Republic
11,193
1.5%
13,434
2.0%
Bulgaria
9,832
1.3%
11,953
1.7%
Greece
7,016
0.9%
4,604
0.7%
Germany
6,641
0.9%
9,073
1.3%
Europe – other EU countries
10,966
1.4%
14,183
2.1%
Europe – other non-EU countries
9,583
1.3%
7,201
1.0%
Asia
35,883
4.7%
23,412
3.4%
South America, including:
26,470
3.5%
28,451
4.1%
Chile
16,067
2.10%
19,149
2.8%
Africa
22,883
3.0%
11,094
1.6%
Australia
470
0.1%
423
0.1%
Total export
266,367
34.9%
241,890
35.2%
Poland
375,704
49.3%
336,161
49.0%
Romania
87,912
11.5%
75,911
11.1%
China
32,607
4.3%
32,775
4.8%
Total sales revenue
762,590
100.0%
686,737
100.0%
25. Costs by type and cost of goods for resale sold
12 months ended
31 December 2022
12 months ended
31 December 2021
Amortisation and depreciation
15,141
14,337
Material and energy consumption
8,411
6,542
Third-party services:
43,050
35,879
costs of transportation
14,236
13,972
warehouse services (costs of servicing of external warehouses)
3,602
162
space rental costs not included in the lease liabilities and service charges for lease agreements
2,754
2,545
IT and telecommunications costs
2,733
2,414
costs of accessing online sales platforms
6,882
4,346
legal, audit and consulting costs
5,247
2,487
other external services
7,596
9,953
Taxes and fees
1,915
1,674
Costs of employee benefits
71,089
64,192
Other costs by type
9,816
7,851
Value of goods for resale and materials sold
519,925
455,330
Total costs by type and value of goods for resale sold
669,347
585,805
Selling costs, including:
108,904
92,713
amortisation and depreciation
10,877
11,826
costs of employee benefits
47,435
38,058
Administrative expenses, including:
40,518
37,762
amortisation and depreciation
4,264
2,511
costs of employee benefits
23,654
26,134
Cost of goods for resale sold
519,925
455,330
Total
669,347
585,805
The Group does not conduct important R&D activities.
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
50
26. Cost of employee benefits
12 months ended
31 December 2022
12 months ended
31 December 2021
Salaries for employment contracts and appointment contracts
55,963
50,790
Wages of temporary workers
2,705
2,693
Cost of social insurance
9,433
8,139
Cost of provision for unused leaves
199
166
Cost of provision for retirement benefits
79
56
Pension benefits paid
18
18
Cost of other employee benefits
2,692
2,330
Total cost of employee benefits
71,089
64,192
Below is the average annual number of employees in terms of one FTE:
12 months ended
31 December 2022
12 months ended
31 December 2021
Total employees – the average number of employees per year per FTE
531
492
Total employees – at the end of the period
548
507
27. Other operating revenue and expenses
OTHER OPERATING REVENUE
12 months ended
31 December 2022
12 months ended
31 December 2021
Gain on sale of property, plant and equipment
564
41
Surplus of FX gains over FX losses on operating activities
2,967
-
Revenue from other sales
430
15
Transport claims compensation (net)
15
73
Interest received
-
25
Donations received
671
427
Other operating revenue
225
270
Total other operating revenue
4,872
851
OTHER OPERATING EXPENSES
12 months ended
31 December 2022
12 months ended
31 December 2021
Loss on liquidation of property, plant and equipment
-
141
Surplus of FX losses over FX gains on operating activities
-
2,763
Cost of other sales
281
179
Penalties and fines paid
1
1
Court and debt recovery fees
38
12
Donations given
55
5
Other
81
242
Total other operating expenses
456
3,343
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
51
28. Financial revenue and expenses
FINANCIAL REVENUE
12 months ended
31 December 2022
12 months ended
31 December 2021
Interest on cash in bank accounts
276
104
Other financial revenue
3
3
Total financial revenue
279
107
FINANCIAL EXPENSES
12 months ended
31 December 2022
12 months ended
31 December 2021
Interest and commissions on loans
8,154
460
Interest on lease liabilities
1,420
1,215
Total financial expenses
9,574
1,675
29. Income tax
The reporting periods presented in these financial statements cover the following tax periods:
• from 1 January 2022 to 31 December 2022,
• from 1 January 2021 to 31 December 2021.
12 months ended
31 December 2022
12 months ended
31 December 2021
Current tax
18,136
20,596
Deferred tax
(7)
(678)
Total income tax
18,129
19,918
In all the years presented, the applicable corporate income tax rate was 19% in the Parent Company, 16% in the Romanian
subsidiary and 25% in subsidiaries in China.
Reconciliation of the theoretical tax on the pre-tax profit and the statutory tax rate with the income tax expense
recognised in profit or loss is presented in the table below:
12 months ended
31 December 2022
12 months ended
31 December 2021
Profit before tax
88,349
97,313
Tax rate applicable in the period
19%
19%
Tax calculated at the applicable tax rate
16,786
18,489
Tax effect of the following items:
- permanent tax differences – revenues
424
605
- temporary tax differences for which no asset was created
16
197
- adjustment of tax from previous years
(10)
(106)
Tax credits
(209)
(130)
Difference between tax rates applicable in other countries
1,122
863
Income tax recognised in profit or loss
18,129
19,918
The provisions on VAT, CIT, PIT or social security contributions frequently change, often resulting in the absence of any
established regulations or legal precedents for reference. The regulations in effect tend to be unclear, thus leading to
differences in opinions as to legal interpretation of fiscal regulations, both between state authorities themselves and
between state authorities and entrepreneurs.
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
52
Tax declarations and other settlements (e.g. customs or foreign exchange) can be audited by authorities which are
authorised to impose high fines, and the additional liabilities arising from such audits have to be paid including high
interest. In the light of the above, the tax risk in Poland is higher than usual tax risk in countries with better-developed
tax systems.
Therefore, the amounts disclosed in the financial statements may change at a later date, following final determination of
their amount by the competent tax authorities.
Effective 15 July 2016, the Polish Tax Code was amended for the General Anti-Abuse Rule (GAAR) provisions. GAAR is
intended to prevent the creation and use of artificial legal arrangements to avoid payment of tax in Poland and defines
tax avoidance as an act carried out primarily in order to achieve a tax benefit, contrary in the circumstances to the object
and goal of a provision of a tax act, which shall not result in a tax benefit, if the mode of action was not genuine. All
unjustified (i) split of operations, (ii) involvement of intermediary entities without any economic or business justification,
(iii) elements that compensate or exclude each other and (iv) other actions with a similar effect to the previously
mentioned, may be considered as prerequisites of artificial activities subject to GAAR. The new regulation will require
significantly more judgement in assessment of the tax consequences of particular transactions.
The GAAR clause is effective with respect to transactions performed following its entry into force as well as transactions
that were carried out before, but the benefits were / are being achieved after the date of its entry into force.
Implementation of the above provisions will enable the Polish tax authorities to challenge legal arrangements by the
taxpayers such as group’s restructurings and reorganizations.
The Group recognizes current and deferred income tax assets and liabilities using IAS 12 Income tax based on profit (tax
loss), tax base, unsettled tax losses, unused tax exemptions and tax rates, taking into account assessment of uncertainties
related to tax settlements.
If there is uncertainty over where or not and in what scope the tax authority will accept tax accounting for transactions,
the Company recognizes these settlements taking into account an uncertainty assessment.
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
53
Deferred income tax
As at 31 December 2022
Assets
Liabilities
Net
As at
1 January 2022
Net
Recognised in
profit or
loss/equity
Non-current assets
Difference between tax and accounting depreciation
rates of property, plant and equipment and intangible
assets
-
786
(786)
(727)
(59)
Right-of-use assets
-
4,474
(4,474)
(4,677)
203
Current assets
Write-down of inventories and unrealized margin
3,086
-
3,086
2,638
448
Asset for expected returns
-
17
(17)
(102)
85
Write-down of receivable
402
-
402
410
(8)
Balance-sheet valuation of receivables denominated in
foreign currencies and other adjustments
225
863
(638)
(469)
(169)
Long-term liabilities
Liabilities from finance leases
3,061
-
3,061
3,146
(85)
Provision for retirement benefits
108
-
108
129
(21)
Financial guarantees granted
6
-
6
7
(1)
Short-term liabilities
Provisions for liabilities
167
6
161
404
(243)
Provisions for unused vacation and bonuses
1,344
-
1,344
1,387
(43)
Accrued interest
85
-
85
21
64
Liabilities from finance leases
1,565
-
1,565
1,749
(184)
Provisions for guarantee repairs
252
-
252
243
9
Total assets and liabilities
10,301
6,146
4,155
4,159
(4)
Total deferred income tax, of which
10,301
6,146
4,155
4,159
(4)
– recognised in profit or loss
7
– recognised in equity (*)
(11)
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
54
As at 31 December 2021
Assets
Liabilities
Net
As at
1 January 2021
Net
Recognised in
profit or
loss/equity
Non-current assets
Difference between tax and accounting depreciation
rates of property, plant and equipment and intangible
assets
-
727
(727)
(681)
(46)
Right-of-use assets
-
4,677
(4,677)
(5,282)
605
Current assets
Write-down of inventories and unrealized margin
2,638
-
2,638
1,726
912
Asset for expected returns
-
102
(102)
(220)
118
Write-down of receivable
410
-
410
410
1
Balance-sheet valuation of receivables denominated in
foreign currencies and other adjustments
(61)
408
(469)
(192)
(277)
Long-term liabilities
Liabilities from finance leases
3,146
-
3,146
3,974
(828)
Provision for retirement benefits
129
-
129
120
9
Financial guarantees granted
7
-
7
7
-
Short-term liabilities
Provisions for liabilities
420
16
404
817
(413)
Provisions for unused vacation and bonuses
1,387
-
1,387
1,086
301
Accrued interest
21
-
21
2
19
Liabilities from finance leases
1,749
-
1,749
1,569
180
Provisions for guarantee repairs
243
-
243
233
10
Total assets and liabilities
10,089
5,930
4,159
3,569
590
Total deferred income tax, of which
10,089
5,930
4,159
3,569
590
– recognised in profit or loss
678
– recognised in equity (*)
(88)
(*) applies to deferred tax from actuarial losses and exchange differences from translation of deferred tax assets recognised in other comprehensive income
Of the above-reported value of net deferred tax assets, the amount of PLN 100 thousand, as at 31 December 2022
(provision), concerns items that the Parent Company expects to realise over a period exceeding 12 months. There are no
temporary differences related to investments in subsidiaries for which a deferred tax provision should be created.
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
55
30. Earnings per share
12 months ended
31 December2022
12 months ended
31 December2021
Net profit
70,220
77,395
Weighted average number of ordinary shares (’000)
75,042
75,042
Basic earnings per share from continuing operations (PLN)
0.94
1.03
Net profit attributable to ordinary shareholders used to calculate diluted earnings
per share
70,220
77,395
Weighted average number of ordinary shares used for calculating basic earnings
per share (’000)
75,042
75,042
Dilution impact:
-
-
Adjusted weighted average number of ordinary shares used for calculating diluted
earnings per share (’000)
75,042
75,042
Diluted earnings per share from continuing operations (PLN)
0.94
1.03
Basic earnings per share were calculated by dividing the net profit by the weighted average number of ordinary shares
during the period.
As at 31 December 2022 and 2021, there were no diluting factors.
31. Financial guarantees granted and received
As at 31 December 2022, the companies belonging to the Group were parties to the following guarantee agreements in
connection with their operations, granted by the following entities:
No
Counterparty
Type of guarantee
Subject matter and value
Date of expiry
1
Bank
Handlowy w
Warszawie
S.A.
Guarantee of payment for the
lease of warehouses in
Nadarzyn
Bank guarantee in the amount of EUR 439,133
28 February 2023
(*)
2
Sopockie
Towarzystwo
Ubezpieczeń
ERGO Hestia
S.A.
Contract on granting a
customs debt guarantee
The security for repayment of custom debts, taxes and other fees
associated with goods released into free circulation based on
customs declaration, in the amount of PLN 270,000
31 December 2023
3
BRD Groupe
Societe
Generale
Guarantee of payment for
warehouse rental in
Bucharest
Bank guarantee in the amount of EUR 246,355
29 July 2027
(*) after the end of the financial year, the guarantee was extended until 28 February 2023, for the amount of EUR 482,640.52.
On 12 June 2019, TOYA S.A. granted a guarantee of payment of liabilities arising from warehouse and office rental
agreement by Toya Romania S.A. to the landlord up to the amount of EUR 115 thousand. The lease agreement was
concluded on 8 February 2019 and covers a period of 10 years, with the option of changing this period. The warranty
expires 3 months after the date of termination of the lease.
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
56
32. Transactions with related entities
In 2022 and 2021, the Group effected transactions with the following related parties:
• Toya Development Sp. z o.o. S.K. in liquidation – entity related through key management personnel,
• Toyota Katowice Sp. z o.o. - entity related through key management personnel,
• Grzegorz Pinkosz – President of the Management Board – key management personnel,
• Maciej Lubnauer – Vice-President of the Management Board – key management personnel,
• Robert Borys – Vice-President of the Management Board – key management personnel from 27.01.2022,
• Piotr Mondalski – President of the Supervisory Board – key management personnel,
• Jan Szmidt – Vice-President of the Supervisory Board – key management personnel,
• Dariusz Górka – Member of the Supervisory Board – key management personnel,
• Grzegorz Maciąg – Member of the Supervisory Board – key management personnel,
• Michał Kobus - Member of the Supervisory Board – key management personnel,
• Wojciech Bartłomiej Papierak - Member of the Supervisory Board – key management personnel,
• Beata Szmidt - Member of the Supervisory Board – key management personnel.
In the years ended 31 December 2022 and 31 December 2021, no receivables from related parties were written down.
Balances due to transactions with related entities are not insured.
Information on remuneration and benefits of key management personnel and on transactions executed with such
personnel
The Management Board and the Supervisory Board comprise the key management personnel of the Company.
The remuneration and benefits paid or payable to the Company's key management personnel are as follows:
2022
2021
Remunerations and benefits under employment contracts and appointment contracts - Management Board
3,167
2,497
Social insurance (ZUS) costs borne by the Company - Management Board
38
9
Remunerations for positions held - Supervisory Board
612
612
Social insurance (ZUS) costs borne by the Company - Supervisory Board
102
103
Employee Capital Plans (PPK) financed by the Company
6
6
The dividend paid to key management personnel is presented below:
2022
2021
Management Board
-
61
Supervisory Board
-
9,110
Apart from the transactions listed above, the Company did not conduct any transactions with key management
personnel.
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
57
Summary of transactions and balances with related entities
Trade and other
receivables
Trade and other
payables
Revenue from sales of
goods and services and
other revenues
Purchase of goods and
services
31.12.2022
1.01.2022 - 31.12.2022
Entities related through key
management personnel
2
-
86
-
Total
2
-
86
-
31.12.2021
1.01.2021 - 31.12.2021
Entities related through key
management personnel
1
-
48
-
Total
1
-
48
-
Related party transactions are entered into on arm’s length terms in the course of the Group’s day-to-day operations
33. Material events subsequent to the end of reporting period
33.1. Change in the composition of the Audit Committee
On 2 January 2023, the Supervisory Board made the following changes to the composition of the Audit Committee:
1. Supervisory Board dismissed from the Audit Committee of TOYA S.A. the following members:
• Mr. Piotr Mondalski
• Mr. Jan Szmidt
• Mr. Grzegorz Maciąg
2. Supervisory Board appointed to the Audit Committee of TOYA S.A. the following member:
• Mr. Wojciech Papierak
• Mr. Michał Kobus
At the same time, the Supervisory Board entrusted the function of the Chairman of the Audit Committee to Mr.
Wojciech Papierak.
After the above-mentioned changes, the Audit Committee of TOYA S.A. consists of the following persons:
1. Mr. Wojciech Papierak - Chairman of the Audit Committee
2. Mr. Michał Kobus – Member of the Audit Committee
3. Mr. Dariusz Górka – Member of the Audit Committee
TOYA S.A. Capital Group
Consolidated financial statements for the financial year ended 31 December 2022
(amounts are expressed in PLN thousand, unless specified otherwise)
Explanatory notes constitute an integral part of these consolidated financial statements
58
Management Board of Toya S.A.
Date
Name and surname
Position
Signature
23.03.2023
Grzegorz Pinkosz
President of the
Management Board
23.03.2023
Maciej Lubnauer
Vice-President of the
Management Board
23.03.2023
Robert Borys
Vice-President of the
Management Board
Person responsible for bookkeeping:
Date
Name and surname
Position
Signature
23.03.2023
Iwona Banik
Chief Accountant
