TOYA S.A.
Financial statements for the financial year ended
31 December 2021
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
2
Contents
Statement of financial position..................................................................................................................................... 4
Statement of profit or loss and other comprehensive income ...................................................................................... 5
Statement of changes in equity .................................................................................................................................... 6
Cash flow statement ..................................................................................................................................................... 7
Accounting policy and other explanatory notes ............................................................................................................ 8
1. General information ............................................................................................................................................ 8
2. Summary of significant accounting policies ......................................................................................................... 9
2.1 Basic of preparation ............................................................................................................................................... 9
2.2 Effect of new standards and interpretations on the Company’s financial statements......................................... 10
2.3 Interests in subsidiaries ........................................................................................................................................ 13
2.4 Segment reporting ................................................................................................................................................ 13
2.5 Valuation of items denominated in foreign currencies ......................................................................................... 13
2.6 Property, plant and equipment ............................................................................................................................ 13
2.7 Intangible assets ................................................................................................................................................... 14
2.8 Leases ................................................................................................................................................................... 15
2.9 Impairment on non-financial non-current assets ................................................................................................. 15
2.10 Borrowing costs ............................................................................................................................................... 16
2.11 Financial assets ................................................................................................................................................ 16
2.12 Impairment of financial assets ......................................................................................................................... 17
2.13 Inventory .......................................................................................................................................................... 17
2.14 Cash and cash equivalents ............................................................................................................................... 18
2.15 Equity ............................................................................................................................................................... 18
2.16 Bank loan liabilities .......................................................................................................................................... 18
2.17 Trade and other payables ................................................................................................................................ 18
2.18 Current and deferred income tax ..................................................................................................................... 19
2.19 Liabilities from employee benefits ................................................................................................................... 19
2.20 Provisions ......................................................................................................................................................... 20
2.21 Recognition of revenue .................................................................................................................................... 20
2.22 Dividends ......................................................................................................................................................... 21
3. Foreign currencies used in preparation of these financial statements ................................................................ 21
4. Material accounting estimates and judgements ................................................................................................. 21
5. Financial risk management ................................................................................................................................. 23
5.1 Market risk ........................................................................................................................................................... 23
5.2 Credit risk .............................................................................................................................................................. 24
5.3 Liquidity risk .......................................................................................................................................................... 26
5.4 Capital management ............................................................................................................................................ 28
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
3
6. Financial instruments ......................................................................................................................................... 28
7. Property, plant and equipment .......................................................................................................................... 29
8. Intangible assets ................................................................................................................................................. 31
9. Right-of-use assets ............................................................................................................................................. 32
10. Investments in subsidiaries ................................................................................................................................ 33
11. Inventory ............................................................................................................................................................ 35
12. Trade and other short-term receivables ............................................................................................................. 35
13. Cash and cash equivalents .................................................................................................................................. 37
14. Additional explanation to the cash flow statement ............................................................................................ 38
15. Share capital ....................................................................................................................................................... 39
16. Retained earnings and dividend per share .......................................................................................................... 39
17. Loans and borrowings liabilities ......................................................................................................................... 40
18. Trade and other payables ................................................................................................................................... 43
19. Liabilities from employee benefits ..................................................................................................................... 43
20. Lease liabilities ................................................................................................................................................... 45
21. Provisions ........................................................................................................................................................... 46
22. Operating segments ........................................................................................................................................... 46
23. Sales revenue ..................................................................................................................................................... 47
24. Costs by type and cost of goods sold .................................................................................................................. 48
25. Cost of employee benefits .................................................................................................................................. 49
26. Other operating revenue and expenses .............................................................................................................. 49
27. Financial revenue and expenses ......................................................................................................................... 49
28. Income tax.......................................................................................................................................................... 50
29. Earnings per share .............................................................................................................................................. 53
30. Financial guarantees granted and received ........................................................................................................ 53
31. Transactions with related entities ...................................................................................................................... 54
32. Material events subsequent to the end of reporting period ............................................................................... 55
32.1 Registration of increase in the share capital of a subsidiary and contribution to the share capital of Yato
Tools (Jiaxing) Co. Ltd. ..................................................................................................................................... 55
32.2 Appointment of a Member of the Management Board ................................................................................... 55
32.3 Annex to a significant contract ........................................................................................................................ 56
32.4 Impact of the war between Ukraine and Russia on the Group's operations ................................................... 56
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
4
Statement of financial position
31 December
2021
31 December
2020
ASSETS
Note
Property, plant and equipment
7
17,419
17,407
Intangible assets
8
3,189
3,208
Right-of-use assets
9
14,121
14,530
Investments in subsidiaries
10
52,984
52,984
Deferred income tax assets
28
1,810
1,947
Non-current assets
89,523
90,076
Inventory
11
285,560
182,031
Trade and other receivables
12
33,602
36,179
Cash and cash equivalents
13
1,229
584
Current assets
320,391
218,794
,
Total assets
409,914
308,870
EQUITY AND LIABILITIES
Share capital
15
7,504
7,504
Share premium
35,677
35,677
Reserve capital
329
329
Other capitals
(209)
(194)
Retained earnings
16
202,035
160,555
Equity
245,336
203,871
Liabilities from loans
17
10,049
4,360
Lease liabilities
20
6,649
9,018
Liabilities from employee benefits
19
678
634
Other long-term liabilities
35
38
Long-term liabilities
17,411
14,050
Trade and other payables
18
38,805
28,717
Liabilities from employee benefits
19
7,402
5,826
Liabilities due to purchase of shares
-
17,946
Liabilities from loans
17
86,904
27,141
Lease liabilities
20
7,015
5,510
Liabilities from current income tax
5,990
4,749
Provisions
21
1,051
1,060
Short-term liabilities
147,167
90,949
Total liabilities
164,578
104,999
Total equity and liabilities
409,914
308,870
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
5
Statement of profit or loss and other comprehensive income
Note
12 months ended
31 December 2021
12 months ended
31 December 2020
23, 23
543,098
442,263
24
(383,649)
(305,722)
159,449
136,541
24
(61,429)
(52,601)
24
(18,843)
(16,887)
12
65
(476)
26
434
3,060
26
(275)
(455)
79,401
69,182
27
3
-
27
(1,013)
(1,237)
78,391
67,945
28
(15,149)
(13,205)
63,242
54,740
19
(19)
(58)
4
11
(15)
(47)
63,227
54,693
63,242
54,740
63,227
54,693
Earnings per share
12 months ended
31 December 2021
12 months ended
31 December 2020
Basic earnings per share in PLN
29
0.84
0.73
- from continuing operations
0.84
0.73
- from discontinued operations
-
-
Diluted earnings per share in PLN
29
0.84
0.73
- from continuing operations
0.84
0.73
- from discontinued operations
-
-
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
6
Statement of changes in equity
Share capital
Share premium
Reserve capital
Other capitals
Retained earnings
Total equity
As at 1 January 2021
7,504
35,677
329
(194)
160,555
203,871
Comprehensive income
Net profit
-
-
-
-
63,242
63,242
Other comprehensive income
-
-
-
(15)
-
(15)
Total comprehensive income
-
-
-
(15)
63,242
63,227
Transactions with owners
Payment of dividend
-
-
-
-
(21,762)
(21,762)
Total transactions with owners
-
-
-
-
(21,762)
(21,762)
As at 31 December 2021
7,504
35,677
329
(209)
202,035
245,336
As at 1 January 2020
7,504
35,677
16,034
(147)
150,144
209,212
Comprehensive income
Net profit
-
-
-
-
54,740
54,740
Other comprehensive income
-
-
-
(47)
-
(47)
Total comprehensive income
-
-
-
(47)
54,740
54,693
Transactions with owners
Dissolution of reserve capital for the purchase of own
shares
-
-
(15,705)
-
15,705
-
Payment of dividend
-
-
-
-
(60,034)
(60,034)
Total transactions with owners
-
-
(15,705)
-
(44,329)
(60,034)
As at 31 December 2020
7,504
35,677
329
(194)
160,555
203,871
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
7
Cash flow statement
Note
12 months ended
31 December 2021
12 months ended
31 December 2020
Cash flows from operating activities
Profit before tax
78,391
67,945
Adjustments for:
Amortisation and depreciation
24
8,782
6,595
Net interest
27
1,009
1,237
Profit/Loss on investing activities
26
(40)
-
Foreign exchange gains/losses
1,135
641
Other adjustments
3
-
Changes in balance sheet items:
Change in trade and other receivables
14
2,577
13,432
Change in inventories
14
(103,529)
15,554
Change in provisions
14
(9)
160
Change in trade and other payables
14
10,085
9,596
Change in employee benefit liabilities
14
1,601
1,346
Income tax paid
(13,769)
(10,755)
Net cash from operating activities
(13,764)
105,751
Cash flows from investing activities
Sale of property, plant and equipment
59
-
Purchase of property, plant and equipment and intangible assets
(2,765)
(4,846)
Purchase of shares in subsidiaries
(19,177)
(12,551)
Net cash from investing activities
(21,883)
(17,397)
Cash flows from financing activities
Proceeds from loans
17
65,351
14,354
Repayments of loans
17
-
(37,535)
Repayment of lease liabilities
20
(6,483)
(4,309)
Interest paid on loans
17
(359)
(435)
Interests paid on leases
20
(455)
(398)
Dividends paid
(21,762)
(60,034)
Net cash from financing activities
36,292
(88,357)
Change in net cash and cash equivalents
645
(3)
Balance sheet change in cash and cash equivalents, including:
645
(2)
- change in cash due to exchange rate differences
-
1
Cash and cash equivalents at the beginning of the period
13
584
586
Cash and cash equivalents at the end of the period
13
1,229
584
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
8
Accounting policy and other explanatory notes
1. General information
Name of the reporting entity: TOYA S.A. (hereinafter referred to as the “Company”)
Legal form of the entity: Joint-stock company
Entity’s registered office address: ul. Sołtysowicka 13-15, 51-168 Wrocław
Entity’s headquarters: Wrocław
Country of registration: Poland
Primary location of entity’s operations: Poland
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).Next, pursuant to a court decision of 3 December 1999,
the Company was entered in the Commercial RHB 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 2021, 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.
Description of the nature and basic scope of Company’s activities
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 Moreover, in 2003 a subsidiary, TOYA Romania
S.A., was established, whose 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 2008, the company Yato Tools (Shanghai) Co. Ltd.,
located in China, was established. The entity deals in the distribution of YATO brand tools and power tools in China and
in certain other foreign markets not supported by TOYA S.A. 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.
Duration of the Company is unlimited.
Toya S.A. is the parent company of the TOYA S.A. Capital Group.
In the period from 1 January 2021 to 26 January 2022, the Management Board was composed of the following members:
• Grzegorz Pinkosz President of the Management Board;
• Maciej Lubnauer Vice-President of the Management Board.
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
9
After the end of the financial year, 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 2021 to 31 December 2021 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 financial statements of the Company cover the year ended on 31 December 2021. Comparative data is presented:
• as at 31 December 2020 - for the statement of financial position;
• for the period from 1 January 2020 to 31 December 2020 - for the statement of profit or loss and other
comprehensive income, the statement of cash flows and the statement of changes in equity.
These financial statements of the Company for the year ended 31 December 2021 were approved for publication by the
Management Board on 24 March 2022.
The Company has also prepared the consolidated financial statements for the year ended 31 December 2021, which were
approved for publication by the Management Board on 24 March 2022.
2. Summary of significant accounting policies
The most significant accounting principles applied for the drawing up of these financial statements have been presented
below. Those principles were applied in all periods presented in a continuous way, unless stated otherwise.
2.1 Basic of preparation
These financial statements of the Company for the financial year ended 31 December 2021 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 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
2021.
The policies described below have been consistently applied to all the periods presented, except for changes resulting
from the application of new or amended IFRS from 1 January 2021, which were described below.
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
10
These financial statements have been prepared in accordance with the historical cost convention.
The preparation of financial statements in conformity with IFRS requires use of significant accounting estimates. It also
requires the Management Board to exercise judgement in the process of applying the accounting policies adopted by the
Company. 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 financial statements are disclosed in note 4.
Going concern
These financial statements have been prepared on the assumption that the Company will continue as going concerns in
the foreseeable future.
2.2 Effect of new standards and interpretations on the Company’s financial statements
These financial statements have been prepared on the basis of the EU IFRS issued and effective as at the reporting date,
i.e. 31 December 2021.
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 2021
• Amendments to IFRS 16 Leases - Covid-19-related Rent Concessions
The changes allow lessees not to assess whether the Covid-19 rent reliefs are a modification to their lease agreements.
Therefore, under the appropriate conditions, lessees who apply a practical solution, will recognize the rent reliefs
received until 30 June 2021 in profit or loss for the period in which the relief was granted. In the absence of a practical
solution, the tax relief would be recognized in profit and loss over the term of the lease agreement.
The above changes did not affect the Company’s financial statements as the Company did not receive any reductions
in rents related to Covid-19.
• Amendments to IFRS 9 Financial Instruments, IAS 39 Financial Instruments: Recognition and
Measurement, IFRS 7 Financial Instruments: Disclosures, IFRS 4 Insurance contracts and IFRS 16 Leases:
Interest Rate Benchmark Reform
The purpose of the amendments is to make it easier for entities to prepare financial statements in accordance with
IFRS and provide users of financial statements with useful information in a situation where, due to a change in the
reference rate ratio, there is a change in contractual cash flows or hedging relationships. The amendments provide
for a practical solution for some changes in contractual cash flows and an exemption for certain hedge accounting
requirements.
The amendments do not have a significant impact on the Company’s financial statements.
• Amendments to IFRS 4 Insurance contracts
The amendments extend by two years the period of temporary exemption from the application of IFRS 9 Financial
Instruments, until annual periods beginning on 1 January 2023, in order to align with the first application of IFRS 17
Insurance Contracts, which replaces IFRS 4 Insurance Contracts.
The amendments do not have a significant impact on the Company’s financial statements.
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
11
b) New standards, interpretations and amendments, which are not yet effective and have not been applied early by
the Company
Standards and Interpretations - approved by the EU, which have not yet come into force for annual periods beginning
on 1 January 2021
Standards and Interpretations
Type of anticipated change in accounting policies
Possible impact on the financial
statements
Amendments to IFRS 3 Business
combinations, IAS 16 Property, plant
and equipment, IAS 37 Provisions,
Contingent Liabilities and Contingent
Assets and Annual Improvements –
2018-2020 cycle (all issued on 14 May
2020)
(Effective for annual periods beginning
on or after 1 January 2022, with early
adoption permitted)
The package of changes includes three narrow scope changes to
the standards:
• updates the reference in IFRS 3 Business Combinations to
the Conceptual Framework for the Preparation and
Presentation of Financial Statements, without changing the
accounting requirements for accounting for business
combinations,
• prohibits entities from reducing the cost of property, plant
and equipment by amounts obtained from the sale of
assets produced in the period when the entity prepares an
item of property, plant and equipment for its intended use.
Such income and the related costs will be recognized in
profit or loss for the period,
• explains which costs the entity uses in assessing whether a
given contract will generate a loss (IAS 37).
The package also includes Annual Improvements to the
International Financial Reporting Standards (2018-2020 cycle),
which clarify the terms used and adjust minor inconsistencies, or
omissions between the requirements of the standards in IFRS 1
First-time Adoption of International Financial Reporting
Standards, IFRS 9 Financial Instruments, IAS 41 Agriculture and
illustrative examples in IFRS 16 Leases.
The above Amendments are not
expected to have a significant impact
on the financial statements of the
Company.
IFRS 17 Insurance contracts (issued on
18 May 2017); including Amendments
to IFRS 17 (issued on 25 June 2020)
(effective for annual periods beginning
on or after 1 January 2023, prospective
adoption, with earlier adoption
permitted)
IFRS 17 replaces the transitional standard IFRS 4 Insurance
Contracts, which was introduced in 2004. IFRS 4 gave entities the
option of continuing to recognize insurance contracts in
accordance with the accounting principles of national standards,
which resulted in the application of many different solutions in
practice.
IFRS 17 addresses the comparability problem created by IFRS 4,
by requiring all insurance contracts to be recognized
consistently, which will benefit both investors and insurers.
Liabilities arising from contracts will be recognized at present
values, instead of historical cost.
The Company does not expect the
standard and amendments to have a
significant impact on its financial
statements.
Amendments to IAS 1 Presentation of
Financial Statements and IFRS Practice
Statement 2: Disclosure of accounting
Policies (issued on 12 February 2021)
(effective for annual periods beginning
on or after 1 January 2023, with earlier
adoption permitted)
Amendments to IAS 1 specify the scope of disclosures of
significant accounting principles (policies) in the financial
statements of the entity. Pursuant to the introduced changes, an
entity should disclose in the financial statements only material
accounting policy information, instead of significant accounting
policies.
The above Amendments are not
expected to have a significant impact
on the financial statements of the
Company.
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
12
Standards and Interpretations
Type of anticipated change in accounting policies
Possible impact on the financial
statements
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 financial statements of the
Company.
Standards and Interpretations awaiting EU endorsement
Standards and Interpretations
Type of anticipated change in accounting policies
Possible impact on the financial
statements
Amendments to IAS 1 Presentation of
Financial Statements: Classification of
Liabilities as Current and Non-Current
and Classification of Liabilities as
Current and Non-Current – Deferral of
Effective Date (issued on 23 January
2020 and 15 July 2020 respectively)
(effective for annual periods beginning
on or after 1 January 2023, with earlier
adoption permitted)
The amendments clarify that the presentation of liabilities as
short-term or long-term should only depend on the existence of
the entity's right to defer the settlement (extension) of a given
liability for a period of at least 12 months from the reporting
date, and on the fulfilment of the conditions for the
implementation of such extension as at the balance sheet date.
The above presentation is not affected by the intentions and
expectations of the management of the entity as to the exercise
of this right or as to the date when it would occur. The changes
also provide explanations as to the events that are considered
to be the settlement of liabilities.
The above Amendments are not
expected to have a significant impact
on the financial statements of the
Company.
Amendments to IAS 12 Income taxes:
Deferred tax related to Assets and
Liabilities from a Single Transaction
(issued on 7 May 2021)
(effective for annual periods beginning
on or after 1 January 2023, with earlier
adoption permitted)
The amendments limit the ability to apply the exemption from
the recognition of deferred tax and indicate that such exemption
cannot be applied to transactions in which the entity recognizes
both an asset and a liability resulting in the simultaneous
recognition of offsetting positive and negative temporary
differences. Consequently, an entity should recognize both the
asset and the deferred tax liability for temporary differences
arising from the initial recognition of leases and liquidation
liabilities.
The above Amendments are not
expected to have a significant impact
on the financial statements of the
Company.
Amendments to IFRS 17 Insurance
Contracts: Initial Application of IFRS 17
and IFRS 9 – Comparative Information
(issued on 9 December 2021)
(effective for annual periods beginning
on or after 1 January 2023)
The amendment introduces a new option to apply IFRS 17 for
the first time to reduce the operational complexity and
accounting mismatch in comparative data between insurance
contract liabilities and related financial assets, at the time of first
application of IFRS 17. The amendment allows for the
presentation of comparative data with regard to financial assets
in a manner more consistent with IFRS 9 Financial Instruments.
The Company does not expect the
standard to have a significant impact
on its financial statements because the
Company is not active in the insurance
industry.
As at the date of approving of these financial statements for publication, 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 Company in relation to the operations or its financial results, however as at
the date of approval of these 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 Company.
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
13
2.3 Interests in subsidiaries
Interests in controlled entities are recognised at acquisition cost.
Investments in subsidiaries are tested for impairment whenever there is indication of impairment or indication that any
previously recognised impairment loss is no longer required or has decreased.
2.4 Segment reporting
Information on operating segments is presented on the same basis as that used for internal reporting to the 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
financial statements prepared in accordance with the UE IFRS.
2.5 Valuation of items denominated in foreign currencies
Functional currency
Items contained in the Company’s financial statements are measured in the currency of the primary economic
environment in which the entity operates (“functional currency”). The financial statements are presented in the Polish
zloty, which is the functional currency and the presentation currency of the Company.
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 income or other operating expenses.
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.
2.6 Property, plant and equipment
Property, plant and equipment are stated at acquisition or production cost less accumulated depreciation and potential
accumulated impairment.
The acquisition price includes the purchase price of an asset (i.e. the amount due to a seller, decreased by deductible
taxes: VAT and excise duty), 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 entity 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.
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
14
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 Company 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 10 years
Correctness of the applied useful lives, depreciation methods and residual values (except where insignificant) is reviewed
by the Company 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.
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. ,
2.7 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:
• trademarks
10 years
• licences and software
from 1 to 20 years
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
15
2.8 Leases
a) Right-of-use assets
The Company 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 Company 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 Company 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 Company 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 Company). 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 Company 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 Company 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
Company 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.
2.9 Impairment on non-financial non-current assets
As at the end of each reporting period, the Company assesses whether there is any evidence that any of its non-financial
non-current assets may be impaired. If the Company finds that there is such evidence, or if the Company is required to
perform annual impairment tests (in the case of goodwill), the Company 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.
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
16
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 Company assesses whether there is evidence that any impairment loss
recognised in the previous periods with respect to a given asset or cash-generating unit is no longer necessary or should
be reduced. If such evidence exists, the Company measures the recoverable amount of the given asset or CGU.
2.10 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.
2.11 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.
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 Company
loses control over the asset.
The Company 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 Company'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 Company 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 1 year) are
determined using effective interest rate method and recognized as “financial income” in statement of profit or loss.
Impairment losses on trade receivables are recognised in line with the accounting policy described in note 2.12 and are
recognized in cost of sales.
As of 31 December 2021 and 2020 the Company did not held any assets qualified within the remaining two categories,
i.e. (ii) measured ad fair value through profit or loss, and (iii) measured at fair value through other comprehensive income.
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
17
2.12 Impairment of financial assets
The Company 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
Company 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 Company 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). 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.
2.13 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 2.21) 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. Inventory impairment is recognised in relation to goods
which are in the permanent offer of the Company 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.
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
18
Impairment losses on inventory are recognised in cost of sales.
2.14 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.
2.15 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,
• other capitals include actuarial gains 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. Transaction cost related to the purchase of own shares reduces the amount of reserve capital created
for this purpose by General Shareholders Meeting.
2.16 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.
2.17 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 2.21). 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 Company 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 2.13).
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
19
According to the regulations of European Parliament and other laws in force, i.e. EU Waste Electrical and Electronic
Equipment Act, the Company, as an operator that places electrical and electronic equipment, batteries, containers and
products such as oils and tires on the market, and under the Extended Producer Responsibility, is responsible for the
products until the end of its life (i.e. waste creation). Due to the fact that under existing Polish regulations the Company
is required, among others, to ensure minimum recycling efficiency levels and recover waste from manufactured products,
the Company fulfils these obligations through an agreement concluded with a Recovery Organization. Costs associated
with this agreement are accrued over the whole year and settled at the end of financial year, upon receiving of the final
invoice.
2.18 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 income 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 Company 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 entity level, 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 Company controls the reversal of such temporary differences
and it is probable that such differences will not reverse in the foreseeable future.
2.19 Liabilities from employee benefits
• Post-employment benefit plan – the defined contribution plan
The Company participates in the national 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 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.
• 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 Company 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 Company. The amount of a retirement severance pay or death benefit depends
on the length of employment and average remuneration of a given employee. The Company accrues for future retirement
severance pay and death benefit obligations in order to attribute costs to the periods to which they relate.
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
20
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 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.
2.20 Provisions
Provisions are created when the Company has a present 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.
2.21 Recognition of revenue
Revenue is recognised at fair value of consideration received or receivable, net of VAT, returns, rebates and discounts.
The Company 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 Company 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 Company
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 Company extends the right of return of purchased goods, within limited period of time, to some of its customers. The
Company estimates the potential liability arising from these rebates and if the estimated liability is material, the Company
recognizes this amount as an offset to revenues from sales and as a liability due to expected returns in “trade liabilities”
line (note 2.17). At the same time, the Company 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 2.13).
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
21
2.22 Dividends
The obligation to pay dividends is recognised when the shareholders’ right to receive such dividends is approved.
3. 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 2021
31 December 2020
1 EUR
4.5994
4.6148
1 USD
4.0600
3.7584
1 CNY
0.6390
0.5744
4. Material accounting estimates and judgements
Estimates and judgements are verified on an ongoing basis. Estimates and judgements used during the preparation of
the 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, are believed to be reasonable under the circumstances.
The Company 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 Company estimates the potential liability arising from rebates granted
to customers, and if the estimated liability is material, the Company 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 Company’s Management Board determines estimated useful lives and depreciation rates for tangible non-current
assets. 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 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 than expected, respectively, and revalues technologically obsolete assets, and assets which are
not of strategic importance and whose use has been discontinued.
If the actual useful lives of property, plant and equipment had been by 10% shorter than the Management Board's
estimates, the depreciation of property, plant and equipment would have been higher by PLN 242 thousand
as at 31 December 2021 (PLN 208 thousand as at 31 December 2020).
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
22
• Lease period for contracts concluded for an unspecified period of time
The Company 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 Company 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.
• Provisions
As at each end of a reporting period, the Management Board of the 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 0; 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 21;
• other provisions resulting from claims brought against the Company – 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 2.13; for details on the amount of the write-down, see note 11.
• Expected credit losses
The Company 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 Company in
estimation of the expected credit losses, in accordance with the policy described in note 2.12; for details on the amount
of the write-down, see note 12.
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
23
5. Financial risk management
The Company’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 Company’s overall risk management programme is designed to mitigate the potential effect of risk on
the Company’s financial performance. The Company 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.
5.1 Market risk
Foreign exchange risk
Currently the Company purchases significant amounts of goods from foreign suppliers, located primarily in China,
at prices denominated in foreign currencies, particularly in CNY and USD. The currency structure of trade liabilities is
presented below:
31 December 2021
31 December 2020
PLN
66%
47%
USD
26%
41%
CNY
8%
12%
TOTAL
100%
100%
In addition, as at 31 December 2020, all equity liabilities due to purchase of shares were denominated entirely in USD.
The Company may use EUR and USD denominated credit facilities available under executed credit facility agreements. As
at 31 December 2021 and 31 December 2020, the Company has no loan liabilities denominated in foreign currencies.
As at 31 December 2021, cash in foreign currencies (CNY, EUR and USD) represented 50% of the total cash, (as at 31
December 2020 - 2%).
38% of the Company’s revenue is generated from exports, at prices denominated in foreign currencies — mainly USD. As
at 31 December 2021, trade receivables in USD represented 46% of the total trade receivables (33% as at 31 December
2020).
There is a risk that future fluctuations of exchange rates may have a negative or positive effect on the Company's financial
performance. So far, the Company has not used derivative financial instruments to hedge against the results of future
changes in exchange rates. The sensitivity of the gross financial result to the increase in the exchange rates of individual
currencies as at 31 December 2021 and 31 December 2020 by 10% is presented below, with other conditions unchanged.
The sensitivity is determined as a result of the conversion of the impact of the higher / lower exchange rate on the
revaluation of the balances of trade receivables and liabilities and others expressed in currencies.
10% currency rate increase as of 31 December 2021
USD
EUR
CNY
TOTAL
Trade and other receivables
1,584
50
-
1,634
Trade and other payables
(850)
(2)
(268)
(1,120)
TOTAL impact on 2021 result
734
48
(268)
514
10% currency rate increase as of 31 December 2020
USD
EUR
CNY
TOTAL
Trade and other receivables
1,186
65
75
1,326
Trade and other payables
(913)
-
(261)
(1,174)
Liabilities due to purchase of shares
(1,795)
-
-
(1,795)
TOTAL impact on 2020 result
(1,522)
65
(186)
(1,643)
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
24
According to the Company’s Management Board, foreign exchange risk concentration Is low, because to a large extent
balances denominated in foreign currencies are offsetting each other. Liability for the purchase of shares denominated
in USD shows a significant sensitivity to changes in the exchange rate.
Risk of interest rate changes affecting cash flows and fair values
As at 31 December 2021 and 31 December 2020 the Company held no other interest-bearing assets.
The Company’s policy envisages the use of bank loans bearing interest at variable rates. This exposes the Company to the
risk of interest rate changes affecting its cash flows. As at 31 December 2021, all liabilities under bank loans bear interest
at variable rates (which was also the case as at 31 December 2020).
The Company monitors its exposure to the risk of interest rate changes affecting its cash flows and fair values. The
Company runs simulations of various scenarios, taking into consideration refinancing, roll-over of the existing positions,
and alternative financing. The Company 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 Company’s cash flows to interest rate risk was prepared for financial instruments
based on variable interest rates. The financial instruments held by the Company 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
2021 and the assumed WIBOR variance.
+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
+20 basis points
-20 basis points
Effect on profit before income tax
Effect on profit before income tax
Financial liabilities
Variable interest rate loans
(63)
63
Total for 2020
(63)
63
The Company does not use derivatives to hedge against the risk of interest rate changes affecting its cash flows and fair
values.
5.2 Credit risk
Credit risk arises mainly from bank deposits and credit exposures to customers, including trade receivables due.
Credit risk relating to bank deposits is considered by the Management Board as low because the Company 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.).
Credit risk relating to credit exposures to Company’s customers is considered as low by the Management Board. The
Company sells its products to 2 key customer groups: retail chains and wholesale customers (including wholesalers,
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
25
distributors and authorised retail stores). The Company sells its products on the domestic and foreign markets – mainly
countries in Central, Eastern and Southern Europe (Russia, Romania, Baltic countries, Hungary, Belarus, the Czech
Republic, Germany, Ukraine).
The table below presents the Company's sales structure by customer group and market:
Share in sales revenues
2021
2020
Domestic sales – wholesale market
42%
40%
Domestic sales – retail chains
13%
16%
Domestic sales – other
7%
8%
Export
38%
36%
Total
100%
100%
As regards sales to retail chains, the Company sells its products to the largest chains in Poland. Credit exposures in this
customer group are rather evenly distributed. 2 key retail chains jointly account for approximately 91% 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.
In the area of wholesale distribution, the Company has established cooperation with authorised distributors, a few dozen
wholesalers across the country and stores. In 2021 and 2020 the concentration of receivables in the wholesale channel
was at a similar level - 75% of sales was executed by 18 in 2021 and 2020. The Company 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 Company mitigates its credit risk by having trade receivables insured in renowned insurance company.
As at 31 December 2021, 58% of the trade receivables were insured (31 December 2020 - 55%). 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
Company also mitigates credit risk through the implementation 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 0.
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 payment delays. The Company’s cash is held in banks
with BBB and A- ratings (EuroRating agency). With respect to trade receivables, the Company does not have external
ratings, but monitors counterparty payment delays on an on-going 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 2021, the maximum credit risk exposure was PLN 13,866
thousand (as at 31 December 2020: PLN 15,111 thousand).
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
26
5.3 Liquidity risk
The Management Board of the Company believes that the Company’s liquidity is secured for the foreseeable future. The
Company 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 Board monitors the level of short-term liabilities and
current assets, as well as current cash flows of the Company. 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 2021
31 December 2020
Current assets
320.391
218,794
Current liabilities
147.167
90,949
2021
2020
Cash flow from operating activities
(13,764)
105,751
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
27
The table below presents financial liabilities of the Company 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
110
-
89,614
10,358
-
-
100,082
Trade and other payables
33,670
-
-
-
-
-
33,670
Lease liabilities
1,835
1,847
3,638
3,949
1,411
4,124
16,804
Warranty liability
529
-
-
-
-
-
529
As at 31 December 2021
36,144
1,847
93,252
14,307
1,411
4,124
151,085
Loans
8
-
27,361
4,406
-
-
31,775
Trade and other payables
24,507
-
-
-
-
-
24,507
Liabilities due to purchase of shares
12,779
3,007
2,255
-
-
-
18,041
Lease liabilities
1,559
1,459
2,871
6,959
839
4,134
17,821
Warranty liability
483
-
-
-
-
-
483
As at 31 December 2020
39,336
4,466
32,487
11,365
839
4,134
92,627
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
28
5.4 Capital management
The Management Board of the Company defines capital as the Company’s equity. The equity held by the Company meets
the requirements provided for in the Polish Commercial Companies Code. There are no other capital requirements
imposed by external regulations.
The Company’s capital management activities are aimed at protecting the Company’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 Company also follows a rule that non-current assets are to be fully financed by equity.
31 December 2021
31 December 2020
Non-current assets
89,523
90,076
Equity
245,336
203,871
In accordance with the concluded loan agreements with the banks, the Company is required to maintain the equity ratio
(the ratio of equity to total assets) at a fixed level.
31 December 2021
31 December 2020
Equity
245,336
203,871
Total assets
409,914
308,870
Equity ratio
60%
66%
In the period covered by these financial statements, the Company implemented the above objective.
6. Financial instruments
As at 31 December 2021
Financial assets
Financial liabilities
Measured at amortised
cost
Measured at amortised
cost
Trade receivables
32,477
-
Cash and cash equivalents
1,229
-
Trade and other payables
-
33,705
Liabilities due to purchase of shares
-
-
Loans and borrowings
-
96,953
Lease liabilities
-
13,664
TOTAL
33,706
144,322
As at 31 December 2020
Financial assets
Financial liabilities
Measured at amortised
cost
Measured at amortised
cost
Trade receivables
34,366
-
Cash and cash equivalents
584
-
Trade and other payables
-
24,546
Liabilities due to purchase of shares
-
17,946
Loans and borrowings
-
31,501
Lease liabilities
-
14,528
TOTAL
34,950
88,521
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
29
Revenue and expense recognised in the 2021 and 2020 financial results, relating to financial assets or financial liabilities
not measured at fair value though profit or loss are presented below:
12 months ended 31 December 2021
Financial assets
Financial liabilities
Interest income
-
-
Interest expenses
-
1,013
Profits on exchange differences
3,820
3,915
Losses on exchange differences
(1,686)
(5,913)
Establishment of impairment write-downs
-
-
Reversal of impairment write-downs
(65)
-
Total net profit / (loss)
2,069
(985)
12 months ended 31 December 2020
Financial assets
Financial liabilities
Interest income
-
-
Interest expenses
-
1,237
Profits on exchange differences
2,477
4,889
Losses on exchange differences
(2,599)
(1,954)
Establishment of impairment write-downs
476
-
Total net profit / (loss)
354
4,172
Fair value estimation
In the Company'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.
7. Property, plant and equipment
31 December
2021
31 December
2020
Land
2,907
2,907
Buildings and structures
7,690
8,110
Plant and equipment
2,505
2,735
Vehicles
93
149
Other
3,536
3,414
Total
16,731
17,315
Property, plant and equipment not transferred for use
688
92
Total property, plant and equipment
17,419
17,407
Apart from the property, plant and equipment serving as security in respect of working capital facilities (note 17), there
are no restrictions on the use of property, plant and equipment held by the Company.
In 2021 and 2020, the Company did not capitalise borrowing costs due to the insignificancy of these amounts.
As at 31 December 2021, the Company had no commitments to expenditure on property, plant and equipment.
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
30
Changes in property, plant and equipment by type
Land
Buildings and
structures
Technical equipment and
machinery
Vehicles
Other
Fixed assets not transferred for use
Total
Initial value
As at 1 January 2021
2,907
13,163
6,789
1,186
9,453
92
33,590
Purchase
-
-
-
-
421
1,785
2,206
Liquidation
-
-
-
(520)
-
-
(520)
Reclassification
-
28
664
-
497
(1,189)
-
As at 31 December 2021
2,907
13,191
7,453
666
10,371
688
35,276
As at 1 January 2020
2,907
13,055
5,063
1,135
7,254
144
29,558
Purchase
-
-
-
-
338
3,705
4,043
Liquidation
-
-
(11)
-
-
-
(11)
Reclassification
-
108
1,737
51
1,861
(3,757)
-
As at 31 December 2020
2,907
13,163
6,789
1,186
9,453
92
33,590
Accumulated depreciation
As at 1 January 2021
-
5,053
4,054
1,037
6,039
-
16,183
Depreciation for the period
-
448
894
42
796
-
2,180
Decreases
-
-
-
(506)
-
-
(506)
As at 31 December 2021
-
5,501
4,948
573
6,835
-
17,857
As at 1 January 2020
-
4,624
3,344
989
5,345
-
14,302
Depreciation for the period
-
429
720
48
694
-
1,891
Decreases
-
-
(10)
-
-
-
(10)
As at 31 December 2020
-
5,053
4,054
1,037
6,039
-
16,183
Carrying amount
As at 31 December 2021
2,907
7,690
2,505
93
3,536
688
17,419
As at 31 December 2020
2,907
8,110
2,735
149
3,414
92
17,407
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
31
8. Intangible assets
31 December
2021
31 December
2020
Licences, concessions and patents, including:
2,398
2,511
– software
2,398
2,511
Other - trademarks and industrial designs
303
256
Total
2,702
2,767
Intangible assets under development
488
441
Total intangible assets
3,189
3,208
There are no material intangible assets produced internally by the Company.
No collateral was established on intangible assets.
Intangible assets under development include licences and software that is being implemented. No impairment was
reported for these trademarks.
The table below presents changes in intangible assets:
Software
Trademarks and
industrial designs
Intangible assets
under development
Total
Initial value
As at 1 January 2021
4,837
477
441
5,755
Purchase
-
-
559
559
Reclassification
418
95
(513)
-
As at 31 December 2021
5,255
572
487
6,314
As at 1 January 2020
3,897
467
588
4,952
Purchase
72
10
721
803
Reclassification
868
-
(868)
-
As at 31 December 2020
4,837
477
441
5,755
Accumulated amortization
As at 1 January 2021
2,326
221
-
2,547
Amortization for the period
531
48
-
579
As at 31 December 2021
2,857
269
-
3,126
As at 1 January 2020
1,924
180
-
2,104
Amortization for the period
402
41
-
443
As at 31 December 2020
2,326
221
-
2,547
Carrying amount
As at 31 December 2021
2,398
303
488
3,189
As at 31 December 2020
2,511
256
441
3,208
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
32
9. Right-of-use assets
31 December
2021
31 December
2020
Perpetual usufruct right to land
1,821
1,820
Buildings and structures
4,340
8,313
Plant and equipment
1,978
640
Vehicles
5,982
3,757
Total
14,121
14,530
Changes in the right-of-use assets are presented below:
Land
Buildings and
structures
Technical
equipment and
machinery
Vehicles
Total
Initial value
As at 1 January 2021
1,870
12,939
2,123
5,571
22,503
New lease contracts
27
-
1,775
3,808
5,610
Modification of lease contracts
-
33
-
-
33
Termination of lease contracts
-
-
-
(1,262)
(1,262)
As at 31 December 2021
1,897
12,972
3,898
8,117
26,884
As at 1 January 2020
1,903
4,845
2,123
3,465
12,336
New lease contracts
-
5,876
-
1,715
7,591
Modification of lease contracts
(33)
2,218
-
430
2,615
Termination of lease contracts
-
-
-
(39)
(39)
As at 31 December 2020
1,870
12,939
2,123
5,571
22,503
Accumulated depreciation
As at 1 January 2021
50
4,626
1,483
1,814
7,973
Depreciation
26
4,006
437
1,555
6,024
Termination of lease contracts
-
-
-
(1,234)
(1,234)
As at 31 December 2021
76
8,632
1,920
2,135
12,763
As at 1 January 2020
25
1,571
1,110
1,035
3,741
Depreciation
25
3,055
373
808
4,261
Termination of lease contracts
-
-
-
(29)
(29)
As at 31 December 2020
50
4,626
1,483
1,814
7,973
Carrying amount
As at 31 December 2021
1,821
4,340
1,978
5,982
14,121
As at 31 December 2020
1,820
8,313
640
3,757
14,530
In 2021, the Company concluded the following new agreements:
• server lease agreement concluded for a period of 5 years, as a result of which right-of-use asset was recognized with
a value of PLN 1,775 thousand;
• a passenger cars lease agreement for a period of 3 years, as a result of which right-of-use assets were recognized with
a value of PLN 2,259 thousand. The discount rate ranged from 4.14% to 4.76%.
Moreover, the Company commissioned further forklifts with an initial value of PLN 1,549 thousand, under contract
concluded in 2020.
Lease liabilities are presented in note 20.
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
33
10. Investments in subsidiaries
As at 31 December 2021 and 31 December 2020, the Company held shares in the following entities:
Country
Type of equity link
% of shares and
votes held
Value of shares
31 December 2021
Toya Romania S.A.
Romania
Subsidiary
99.99
1,885
Yato Tools (Shanghai) Co. Ltd.
China
Subsidiary
100.00
20,746
Yato Tools (Jiaxing) Co. Ltd.
China
Subsidiary
100.00
30,353
52,984
31 December 2020
Toya Romania S.A.
Romania
Subsidiary
99.99
1,885
Yato Tools (Shanghai) Co. Ltd.
China
Subsidiary
100.00
20,746
Yato Tools (Jiaxing) Co. Ltd.
China
Subsidiary
100.00
30,353
52,984
In 2021, there were no changes in the shares held by the Company.
No impairment indicators have been identified by the Company in relations to interests in subsidiaries.
Information about changes in investments in subsidiaries after the end of the financial year is presented in note 32.1.
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
34
Key financial data of subsidiaries is presented in the table below (data before consolidation adjustments).
Non-current assets
Current assets
Equity
Long-term
liabilities
Short-term
liabilities
Revenues (*)
Expenses (**)
Net profit
2021
Yato Tools (Jiaxing) Co. Ltd.
25,533
99,730
47,598
24
77,641
384,193
(373,664)
10,529
Yato Tools (Shanghai) Co. Ltd.
2,908
83,292
36,792
295
49,114
131,145
(129,117)
2,028
Toya Romania S.A.
17,419
43,729
32,815
11,784
16,550
76,194
(70,959)
5,235
TOTAL
45,860
226,751
117,205
12,103
143,305
591,532
(573,740)
17,792
2020
Yato Tools (Jiaxing) Co. Ltd.
5,775
44,780
14,750
-
35,806
88,178
(87,786)
392
Yato Tools (Shanghai) Co. Ltd.
4,314
50,614
31,139
719
23,071
178,509
(173,729)
4,780
Toya Romania S.A.
19,180
38,012
28,132
13,005
16,056
56,947
(52,356)
4,591
TOTAL
29,269
133,406
74,021
13,724
74,933
323,634
(313,871)
9,763
(*) revenues comprise: revenue from the sales of goods for resale, other operating revenue and financial revenue
(**) expenses comprise: cost of goods for resale sold, selling costs, administrative expenses, expected credit losses, other operating expenses, financial expenses and income tax expense
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
35
11. Inventory
31 December
2021
31 December
2020
Goods for resale at warehouse and in transit
285,022
180,871
Asset for expected returns from customers
538
1,160
Total inventory (carrying amount)
285,560
182,031
Revaluation write-down for goods at warehouse to net recoverable amount
1,384
1,604
Gross inventories
286,944
183,635
The table below presents changes in revaluation write-downs on inventory:
2021
2020
As at 1 January
1,604
1,828
Increase
-
Reversal/utilisation
(220)
(224)
As at 31 December
1,384
1,604
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 Company, should be written down,
mainly as a result of their sale.
12. Trade and other short-term receivables
31 December
2021
31 December
2020
Trade receivables from related parties
13,741
9,960
Trade receivables from third parties
20,722
26,458
Total trade receivables
34,463
36,418
Taxes, custom duties and social security receivables
-
-
Other receivables from third parties
38
167
Advances for deliveries
175
958
Prepayments and deferred costs
948
723
Total gross receivables
35,624
38,266
Impairment write-downs of doubtful trade receivables
(1,986)
(2,051)
Impairment write-downs of other receivables
(36)
(36)
Total net receivables
33,602
36,179
The Company 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 2.12. The
average repayment period of receivables is 22 days.
Changes in gross trade receivables are summarized in table below:
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
36
Receivables analysed
in group
Receivables analysed
individually
Total
As at 1 January 2021
32,343
4,075
36,418
Increase due to sales
625,795
-
625,795
Interest and litigation costs
-
5
5
Receivables classified individually as irrecoverable
(16)
16
-
Collected receivables
(624,712)
(2,396)
(627,108)
Compensated receivables
(1,037)
-
(1,037)
Other changes, including currency translation differences
390
-
390
As at 31 December 2021
32,763
1,700
34,463
Changes in the write-downs of trade receivables are presented in the table below:
2021
2020
As at 1 January
2,051
2,735
Increase
-
476
Utilisation
-
(1,160)
Reversal
(65)
-
As at 31 December
1,986
2,051
Collaterals established on receivables are described in note 17.
The table below presents the ageing structure of receivables, including average expected credit loss ratio for each
overdue period.
31 December 2021
Total
Not overdue
0-30 days
31-60 days
61-90 days
over 90 days
Gross trade receivables as at
31 December 2021
34,463
30,968
1,768
37
5
1,685
Group analysis – gross value
32,766
30 968
1,768
37
5
(12)
Expected credit loss ratio
1%-5%
2-10%
5%-25%
10%-50%
20%-100%
Expected credit losses
(323)
(261)
(52)
(2)
(4)
(4)
Individual analysis – gross value
1,697
-
-
-
-
1,697
Impairment loss on individual
customers
(1,664)
-
-
-
-
(1,664)
Total expected credit losses
(1,987)
(261)
(52)
(2)
(4)
(1,668)
Total net trade receivables
32,476
30,707
1,716
35
1
17
31 December 2020
Total
Not overdue
0-30 days
31-60 days
61-90 days
over 90 days
Gross trade receivables as at
31 December 2020
36,418
31,117
1,312
(29)
(4)
4,022
Group analysis – gross value
32,343
31,117
1,312
(29)
(4)
(53)
Expected credit loss ratio
1%-5%
2-10%
5%-25%
10%-50%
20%-100%
Expected credit losses
(355)
(314)
(31)
(6)
-
(4)
Individual analysis – gross value
4,075
-
-
-
-
4,075
Impairment loss on individual
customers
(1,696)
-
-
-
-
(1,696)
Total expected credit losses
(2,051)
(314)
(31)
(6)
-
(1,700)
Total net trade receivables
34,367
30,803
1,281
(35)
(4)
2,322
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
37
The individual analysis is carried out in relation to customers for which indicators described in the policy in note 2.12
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).
13. Cash and cash equivalents
31 December
2021
31 December
2020
Cash in hand and at bank
1,229
584
Total cash and cash equivalents
1,229
584
Apart from cash disclosed in the statement on financial position, the 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 2021, these funds amounted to
PLN 50 thousand and as at 31 December 2020 to PLN 66 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 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
2021, the cash balance in these VAT accounts totalled PLN 570 thousand (31 December 2020: PLN 444 thousand).
According to the Management Board's judgment, restrictions on the use 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 its
short-term liabilities.
Apart from the VAT and ZFŚS funds, as at 31 December 2021 and 31 December 2020, the Company did not have any cash
of limited disposability.
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
38
14. Additional explanation to the cash flow statement
Reconciliation of changes in balance sheet items as shown in the statements of financial position and in the statements
of cash flows:
Adjustments
12 months ended 31 December 2021
Balance
sheet
change
Measurement of
cash in foreign
currencies
Actuarial
gains/losses
recognised in
comprehensive
income
Change in statement of
cash flows
Change in trade and other receivables
2,577
-
-
2,577
Change in inventories
(103,529)
-
-
(103,529)
Change in provisions
(9)
-
-
(9)
Change in trade and other payables
10,085
-
-
10,085
Change in employee benefit liabilities
1,620
-
(19)
1,601
Change in cash
645
-
645
Adjustments
12 months ended 31 December 2020
Balance
sheet
change
Measurement of
cash in foreign
currencies
Actuarial
gains/losses
recognised in
comprehensive
income
Actuarial gains/losses
recognised in
comprehensive income
Change in trade and other receivables
13,432
-
-
13,432
Change in inventories
15,554
-
-
15,554
Change in provisions
160
-
-
160
Change in trade and other payables
9,596
-
-
9,596
Change in employee benefit liabilities
1,404
-
(58)
1,346
Change in cash
(2)
(1)
(3)
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
39
15. Share capital
As at 31 December 2021, 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 2021, 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
28,170,647
ordinary bearer
0.1
2,817,064.70
37.54%
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%
Norges Bank
legal person
3,779,325
ordinary bearer
0.1
377,932.50
5.03%
Other
- share below 5%
not applicable
28,438,817
ordinary bearer
0.1
2,843,881.70
37.91%
TOTAL
75,042,226
7,504,222.60
100.00%
16. Retained earnings and dividend per share
On 29 June 2021, the General Meeting of Shareholders of Toya S.A. approved the financial statements of TOYA S.A. for
2020 and decided to pay a dividend in the amount of PLN 21,762 thousand.
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 Company – PLN 2,501 thousand as at 31 December
2021. These statutory reserve funds are exempt from distribution among shareholders and may only be used to cover
losses. As at 31 December 2021 and 31 December 2020, the supplementary capital was created in the required amount.
The retained earnings as at 31 December 2021 represent result for the current year, supplementary capital created from
the Company’s profits from previous years and may be allocated to dividends, in addition to the amount excluded from
the distribution indicated in the paragraph above.
Dividend paid per share:
12 months ended
31 December
12 months ended
31 December
2021
2020
Dividend paid
21,762
60,034
Number of ordinary shares (’000)
75,042
75,042
Dividend per share (PLN)
0.29
0.80
Management Board of the Company did not provide recommendation on 2021 profit distribution.
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
40
17. Loans and borrowings liabilities
31 December
2021
31 December
2020
Bank loan liabilities, including
96,953
31,501
– long-term
10,049
4,360
– short-term
86,904
27,141
Changes in bank loans are presented in the table below:
Revolving bank loans
Non-revolving
bank loans
Bank loans
TOTAL
As at 1 January 2020
54,705
-
54,705
Increase in loans
9,994
4,360
14,354
Interest for the period (note 27)
413
-
413
Interest repaid
(435)
-
(435)
Loan repaid
(37,536)
-
(37,536)
As at 31 December 2020
27,141
4,360
31,501
Increase in loans
46,264
19,087
65,351
Interest for the period (note 27)
297
163
460
Interest repaid
(247)
(112)
(359)
As at 31 December 2021
73,455
23,498
96,953
– long-term
-
10,049
10,049
– short-term
73,455
13,449
86,904
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
41
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 .12.2021
Amount
outstanding as at
31.12.2021
Amount outstanding
as at
31.12.2020
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.
40,000
29,310
8,555
WIBOR 1 M + bank’s margin
16 December 2022
2. Overdraft credit facility agreement No 09/030/19/Z/VV
mBank S.A. with its registered office
in Warsaw
40,000
30,453
8,585
WIBOR 1 ON + 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
13,692
10,001
WIBOR 1 M + bank’s margin
30 September 2022
4. Non-revolving loan agreement no WAR/8833/20/327/CB
BNP Paribas Bank Polska S.A. with
its registered office in Warsaw
24,000
23,498
4,360
WIBOR 1 M + bank’s margin
30 September 2023
Total liabilities, of which:
129,000
96,953
31,501
– short-term portion
105,000
86,904
27,141
– long-term portion
24,000
10,049
4,360
(*) the loan is presented as short-term due to its nature (overdraft facility) and the fact that it can be used on the Company's current operating activities
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
42
During the year ended on 31 December 2021, 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 contract). The book value of mortgaged assets was PLN 10,541
thousand as at 31 December 2021 (PLN 10,914 thousand as at 31 December 2020). The value of the assignment of
receivables in the amount of PLN 19,281 thousand (PLN 19,225 thousand as at 31 December 2020) was determined at
the book value of the collateral.
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
has undertaken not to provide loans or guarantees to third parties without the prior consent of the bank throughout the
term of the loan.
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 2021, the weighted average cost of loans (excluding commissions) was 2.88%.
Defaults under loan agreements
As at 31 December 2021, the Company 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 ratio at an agreed level throughout the lending
period. If this requirement is not met, the bank has the right to terminate the agreements.
The Company 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.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
43
18. Trade and other payables
31 December
2021
31 December
2020
Trade payables to related parties
2,780
1,270
Trade payables to third parties
29,951
21,196
Total trade payables
32,731
22,466
Tax liabilities
4,675
4,063
Liability due to expected goods returns
910
2,014
Prepayments received
460
146
Other payables to third parties
29
28
Total other current payables
6,074
6,251
Total
38,805
28,717
Advances received represent contractual obligations in accordance with IFRS 15.
An average payables payment period is 26 days.
During the year ended 31 December 2021, the Company recognized revenues in the amount of PLN 146 thousand, which
were classified as prepayments at the beginning of the period.
19. Liabilities from employee benefits
31 December
2021
31 December
2020
Provisions for retirement benefits, disability pensions and for death benefits
678
634
Liabilities from employee benefits – non-current portion
678
634
Provisions for retirement benefits, disability pensions and for death benefits
46
16
Payroll liabilities
5,804
4,409
Unused holidays
1,552
1,401
Liabilities from employee benefits – current portion
7,402
5,826
The 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 and death benefits as at 31
December 2021 and 31 December 2020 was estimated by an actuary. The basic assumptions were as follows:
Assumptions
31 December
2021
31 December
2020
Discount rate (risk-free rate)
3.92%
1.57%
Growth rate of remunerations
- in the first year
7.00%
2.50%
- in the second year
5.50%
2.50%
- in the subsequent years
3.50%
2.50%
Assumptions concerning future mortality are determined based on statistics published by the Central Statistical Office
(GUS).
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
44
The statement of actuarial gains and losses is presented below.
31 December
2021
31 December
2020
Current value of liability as at 1 January
650
527
current service cost
63
55
net interest on net liability
10
10
actuarial gains or losses, including resulting from:
19
58
changes in demographic assumptions
63
18
changes in financial assumptions
(94)
34
ex post adjustments of actuarial assumptions
50
5
benefits paid
(18)
-
Current value of liability as at 31 December
724
650
Total expenses recognised in profit or loss in respect of future employee benefits amounted to PLN 73 thousand in 2021
and PLN 65 thousand in 2020 and were recognised in administrative expenses. Actuarial losses incurred in 2021
amounted to PLN 19 thousand (in 2020: PLN 58 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 2021 are as follows:
Assumption
Changes in the
assumption
Increase in the
assumption
Decrease in the
assumption
technical discount rate
1%
(42)
46
salary rise in the Company
1%
96
(82)
turnover ratio
1%
(38)
42
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
37
37
8
12
9
2,505
disability pension
2
2
2
2
2
33
death benefit
10
11
12
14
15
614
total
49
50
22
28
26
3,152
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
45
20. Lease liabilities
The Company 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.
2021
2020
Lease liability as at 1 January
14,528
8,201
New lease contracts
5,584
7,591
Modification of the terms of the contract
33
2,616
Settlement of completed contracts
(2)
(11)
Accrued interest
455
398
Lease payments (*)
(6,869)
(4,707)
Valuation of contracts in foreign currencies and currency translation differences
(65)
440
Lease liability as at 31 December
13,664
14,528
(*) lease payments include net amounts paid, according to invoices, including both capital instalments and interest.
Undiscounted future cash flows are presented below.
31 December
31 December
2021
2020
up to 1 year
7,320
5,888
1–3 years
3,949
6,959
3–5 years
1,411
839
more than 5 years
4,124
4,134
Total
16,804
17,820
The costs resulting from lease contracts are presented below.
2021
2020
Amortization and depreciation
6,024
4,261
Interest
454
397
Exchange rate differences
(65)
440
Total
6,413
5,098
During the year ended 31 December 2021, the Company incurred costs in connection with the short-term lease
agreements in the amount of PLN 86 thousand and low-value lease agreements in the amount of PLN 21 thousand.
Total cash outflow from leases in 2021 amounted to PLN 7,045 thousand (excluding VAT).
Information on leased assets is presented in note 9.
The maturity analysis of lease liabilities is presented in note 5.3.
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
46
21. Provisions
Provision for warranty repairs
2021
2020
As at 1 January
1,060
900
Provision created
1,051
1,060
Provision utilized
(1,060)
(900)
As at 31 December
1,051
1,060
Short-term as at 31 December
1,051
1,060
The provision for guarantee repairs is created in accordance with the policy described in note 0. 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 for resale sold”.
22. Operating segments
Identification of operating and reporting segments
The Management Board of the 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 and China) 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 Company. As part
of retail sales, sales are mainly realized through an online store and popular online platforms. There are no revenues
obtained from transactions between the segments, therefore all revenues generated by individual segments come from
transactions with external customers.
Data analysed by the Management Board of the Company for segment description is consistent with the data disclosed
in the statement of comprehensive income.
In 2021 and in 2020 the Company did not record revenue from sale to a single external customer exceeding 10% of total
sales revenue.
As at 31 December 2021, the Company’s assets amounted to PLN 409,914 thousand (31 December 2020: PLN 308,870
thousand), and the Company’s liabilities amounted to PLN 164,578 thousand (31 December 2020: 104,999 thousand)
and were related only to trading activities. The Management Board of the Company does not analyse the assets and
liabilities of the Company broken down into individual segments.
The Company has no non-current assets located abroad.
The most important geographic export directions of the Company are disclosed in note 23.
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
47
12 months ended
31 December 2021
EXPORT SALES
WHOLESALE
MARKET
RETAIL
NETWORKS
RETAIL SALES
TOTAL
Sales revenue
Sales to external customers
206,937
227,498
71,063
37,600
543,098
Total segment revenue
206,937
227,498
71,063
37,600
543,098
Cost of goods sold
Sales to external customers
(158,610)
(153,979)
(50,105)
(20,955)
(383,649)
Total costs of goods sold
(158,610)
(153,979)
(50,105)
(20,955)
(383,649)
Gross profit
48,327
73,519
20,958
16,645
159,449
Gross profit margin
23%
32%
29%
44%
29%
12 months ended
31 December 2020
EXPORT SALES
WHOLESALE
MARKET
RETAIL
NETWORKS
RETAIL SALES
TOTAL
Sales revenue
Sales to external customers
160,521
176,226
72,096
33,420
442,263
Total segment revenue
160,521
176,226
72,096
33,420
442,263
Cost of goods sold
Sales to external customers
(120,159)
(116,785)
(50,115)
(18,663)
(305,722)
Total costs of goods sold
(120,159)
(116,785)
(50,115)
(18,663)
(305,722)
Gross profit
40,362
59,441
21,981
14,757
136,541
Gross profit margin
25%
34%
30%
44%
31%
23. Sales revenue
12 months ended
31 December 2021
12 months ended
31 December 2020
Sales of goods for resale
543,098
442,263
Total sales revenue
543,098
442,263
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
48
The geographical structure of revenues from sales has been presented below.
12 months ended
31 December 2021
12 months ended
31 December 2020
Sales revenue
Share
Sales revenue
Share
Romania
48,120
8.9%
36,996
8.4%
Ukraine
26,919
5.0%
22,579
5.1%
Baltic countries
22,145
4.1%
16,523
3.7%
Belarus
17,673
3.3%
14,231
3.2%
Hungary
17,213
3.2%
14,623
3.3%
Czech Republic
13,434
2.5%
12,262
2.8%
Bulgaria
10,212
1.9%
2,608
0.6%
Moldova
9,151
1.7%
7,382
1.7%
Germany
9,073
1.7%
8,013
1.8%
Russia
7,116
1.3%
7,200
1.6%
Europe – other EU countries
17,311
3.2%
10,026
2.3%
Europe – other non-EU countries
6,840
1.3%
4,584
1.0%
Other continents
1,730
0.3%
3,494
0.8%
Total export
206,937
38.1%
160,521
36.3%
Poland
336,161
61.9%
281,742
63.7%
Total sales revenue
543,098
100.0%
442,263
100.0%
24. Costs by type and cost of goods sold
12 months ended
31 December 2021
12 months ended
31 December 2020
Amortisation and depreciation
8,782
6,595
Material and energy consumption
5,588
3,788
Third-party services, including:
21,718
20,302
costs of transportation
7,003
6,967
warehouse services
162
1,977
service charges for space lease agreements
2,093
1,587
IT and telecommunications costs
2,150
1,922
costs of accessing online sales platforms
4,028
2,785
legal, audit and consulting costs
1,832
1,293
other external services
4,450
3,771
Taxes and fees
1,406
1,124
Costs of employee benefits
40,255
35,612
Other costs by type
2,523
2,067
Value of goods for resale and materials sold
383,649
305,721
Total costs by type and value of goods for resale sold
463,921
375,209
Selling costs, including:
61,429
52,601
amortisation and depreciation
7,374
5,315
costs of employee benefits
26,526
23,565
Administrative expenses, including:
18,843
16,887
amortisation and depreciation
1,408
1,280
costs of employee benefits
13,729
12,047
Cost of goods for resale sold
383,649
305,721
Total
463,921
375,209
The Company does not conduct important R&D works.
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
49
25. Cost of employee benefits
12 months ended
31 December 2021
12 months ended
31 December 2020
Salaries for employment contracts and appointment contracts
30,903
27,285
Wages of temporary workers
2,693
2,399
Cost of social insurance
5,651
4,698
Cost of provision for unused leaves
151
356
Cost of provision for retirement benefits
56
64
Cost of retirement and similar benefits paid
17
-
Cost of other employee benefits
784
810
Total cost of employee benefits
40,255
35,612
Below is the average annual number of employees in terms of one FTE:
26. Other operating revenue and expenses
OTHER OPERATING REVENUE
12 months ended
31 December 2021
12 months ended
31 December 2020
Surplus of FX gains over FX losses on operating activities
137
2,813
Revenue from other sales
106
149
Compensations received
65
36
Interest received
25
2
Gain on sale of property, plant and equipment
41
-
Damages on balance with received compensation
8
Other operating revenue
52
60
Total other operating revenue
434
3,060
OTHER OPERATING EXPENSES
12 months ended
31 December 2021
12 months ended
31 December 2020
Cost of other sales
179
230
Penalties and fines paid
1
32
Court and debt recovery fees
12
93
Interest paid to the state budget and to counterparties
-
10
Donations given
5
5
Damages on balance with received compensation
-
11
Receivables written-off
3
Other
75
74
Total other operating expenses
275
455
27. Financial revenue and expenses
FINANCIAL REVENUE
12 months ended
31 December 2021
12 months ended
31 December 2020
Other financial revenue
3
-
Total financial revenue
3
-
FINANCIAL EXPENSES
12 months ended
31 December 2021
12 months ended
31 December 2020
Interest and commissions on loans
461
413
Cost of discounting long-term liabilities
97
426
Interest on lease liabilities
455
398
Total financial expenses
1,013
1,237
12 months ended
31 December 2021
12 months ended
31 December 2020
Total employees
299
283
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
50
28. Income tax
The reporting periods presented in these financial statements cover the following tax periods:
• from 1 January 2021 to 31 December 2021,
• from 1 January 2020 to 31 December 2020.
12 months ended
31 December 2021
12 months ended
31 December 2020
Current tax
15,008
13,649
Deferred tax
141
(444)
Total income tax
15,149
13,205
A 19% corporate income tax rate was applicable in all the aforementioned periods.
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 2021
12 months ended
31 December 2020
Profit before tax
78,391
67,945
Tax rate applicable in the period
19%
19%
Tax calculated at the applicable tax rate
14,895
12,910
Tax effect of the following items:
- permanent tax differences – costs
254
254
- temporary tax differences for which no asset was created
-
41
Income tax reported in the profit and loss account
15,149
13,205
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.
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. In Poland, no formal procedures are present for the determination of the final amount of tax due. Tax
declarations can be audited over a period of five years.
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.
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
51
The Company 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.
Deferred income tax
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
-
2,683
(2,683)
(2,761)
78
Current assets
Write-down of inventories
263
-
263
305
(42)
Asset for expected returns
-
102
(102)
(220)
118
Write-down of receivable
377
-
377
389
(12)
Balance-sheet valuation of receivables
denominated in foreign currencies
(61)
-
(61)
12
(73)
Long-term liabilities
Liabilities from finance leases
1,263
-
1,263
1,713
(450)
Provision for retirement benefits
129
-
129
120
9
Financial guarantees granted
7
-
7
7
-
Short-term liabilities
Provisions for liabilities
419
-
419
792
(373)
Balance-sheet valuation of short-term liabilities
-
16
(16)
(65)
49
Provisions for unused vacation and bonuses
1,387
-
1,387
1,086
301
Accrued interest
21
-
21
2
19
Lease liabilities
1,333
-
1,333
1,047
286
Provisions for guarantee repairs
200
-
200
201
(1)
Total deferred income tax, of which
5,338
3,528
1,810
1,947
(137)
- recognised in profit or loss
(141)
- recognised in equity (*)
4
(*) applies to deferred tax from actuarial losses recognised in other comprehensive income
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
52
As at 31 December 2020
Assets
Liabilities
Net
As at 1 January
2020 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
-
681
(681)
(641)
(40)
Right-of-use assets
-
2,761
(2,761)
(1,633)
(1,128)
Current assets
Write-down of inventories
305
-
305
347
(42)
Asset for expected returns
-
220
(220)
(209)
(11)
Write-down of receivable
389
-
389
520
(131)
Balance-sheet valuation of receivables denominated
in foreign currencies
12
-
12
50
(38)
Long-term liabilities
Balance-sheet valuation of long-term liabilities
-
-
-
(100)
100
Liabilities from finance leases
1,713
-
1,713
1,046
667
Provision for retirement benefits
120
-
120
99
21
Financial guarantees granted
7
-
7
7
-
Short-term liabilities
Provisions for liabilities
792
-
792
474
318
Balance-sheet valuation of short-term liabilities
-
65
(65)
(27)
(38)
Provisions for unused vacation and bonuses
1,086
-
1,086
838
248
Accrued interest
2
-
2
6
(4)
Lease liabilities
1,047
-
1,047
544
503
Provisions for guarantee repairs
201
-
201
171
30
Total deferred income tax, of which
5,674
3,727
1,947
1,492
455
– recognised in profit or loss
444
– recognised in equity
11
Of the above-reported value of net deferred tax assets, the amount of PLN 256 thousand (provision) concerns items that
the Company expects to realise over a period exceeding 12 months.
There are no significant temporary differences and tax losses for which no assets have been created.
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
53
29. Earnings per share
12 months ended
31 December 2021
12 months ended
31 December 2020
Net profit
63,242
54,740
Weighted average number of ordinary shares issued (’000)
75,042
75,042
Weighted average number of ordinary shares
75,042
75,042
Basic earnings per share (PLN)
0.84
0.73
Earnings per share attributable to ordinary shareholders, used to calculate diluted
earnings per share
63,242
54,740
Weighted average number of issued ordinary shares, applied to calculate basic
earnings per share
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 (PLN)
0.84
0.73
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 2021 and 31 December 2020 the Company had no potential dilutive instruments.
30. Financial guarantees granted and received
As at 31 December 2021, the Company was party to the following guarantee agreements in connection with their
operations, granted by the following entities:
(*) after the end of the financial year, the guarantee was extended until 28 February 2023, for the amount of EUR 439,133.
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.
The guarantee was measured at fair value.
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 429,980
28 February 2022
(*)
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
2022
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
54
31. Transactions with related entities
In 2021 and 2020, the Company effected transactions with the following related parties:
• Toya Romania SA – subsidiary,
• Yato Tools (Shanghai) Co., Ltd. – subsidiary,
• Yato Tools (Jiaxing) Co., Ltd. – subsidiary,
• 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,
• 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 2021 and 31 December 2020, there were no indications of impairment and therefore
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 of the Company 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:
2021
2020
Remunerations and benefits under employment contracts and appointment contracts - Management Board
2,497
2,041
Social insurance (ZUS) costs borne by the Company - Management Board
9
61
Remunerations for positions held - Supervisory Board
612
596
Social insurance (ZUS) costs borne by the Company - Supervisory Board
103
102
Employee Capital Plans (PPK) financed by the Company
5
15
The dividend paid to key management personnel is presented below:
2021
2020
Management Board
61
167
Supervisory Board
9,110
25,132
Apart from the transactions listed above, the Company did not conduct any transactions with key management
personnel.
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
55
Summary of transactions and balances with related entities
Trade and other
receivables
Trade and other
payables
Liabilities due
to purchase of
shares
Revenue from sales of
goods and services and
other revenues
Purchase of goods and
services
31.12.2021
1.01.2021 - 31.12.2021
Subsidiaries
13,740
2,780
-
48,220
291,524
TOYA Romania S.A.
13,740
-
-
48,210
-
Yato Tools (Shanghai) Co. Ltd.
-
-
-
10
20,148
Yato Tools (Jiaxing) Co. Ltd.
-
2,780
-
-
271,376
Entities related through key
management personnel
1
-
-
48
-
Total
13,741
2,780
-
48,268
291,524
31.12.2020
1.01.2020 - 31.12.2020
Subsidiaries
9,959
1,270
17,946
37,047
176,065
TOYA Romania S.A.
9,909
-
-
36,995
-
Yato Tools (Shanghai) Co. Ltd.
50
-
-
52
108,508
Yato Tools (Jiaxing) Co. Ltd.
-
1,270
17,946
-
67,557
Entities related through key
management personnel
1
-
-
46
8
Total
9,960
1,270
17,946
37,093
176,073
Related party transactions are entered into on arm’s length terms in the course of the Company’s day-to-day operations.
32. Material events subsequent to the end of reporting period
32.1 Registration of increase in the share capital of a subsidiary and contribution to the share
capital of Yato Tools (Jiaxing) Co. Ltd.
On 17 January 2022, an increase in the share capital of the subsidiary - Yato Tools (Jiaxing) Co., Ltd. - from the amount of
USD 8,000 thousand up to the amount of USD 12,500 thousand - was registered in the Chinese register of entrepreneurs.
After acquiring additional shares, the Company holds 100% of shares in the subsidiary with a total nominal value of USD
12,500 thousand.
On 21 January 2022, the Company paid USD 1 million (PLN 3,983 thousand) on account of the above-mentioned capital
increase.
32.2 Appointment of a Member of the Management Board
On 27 January 2022, the Supervisory Board appointed Mr. Robert Borys to the position of the Vice-President of the
Management Board.
TOYA S.A.
Financial statements for the financial year ended 31 December 2021
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
56
32.3 Annex to a significant contract
TOYA S.A. (hereinafter referred to as the: “Issuer”) hereby announces that on 16 February 2022 it concluded the Annex
no. 1 to the Non-Revolving Credit Agreement no. WAR/8833/20/327/CB of 14 September 2020 (hereinafter referred to
as the: “Agreement”) with BNP Paribas Bank Polska Spółka Akcyjna with its registered office in Warsaw, about which the
Issuer informed in report no. 39/2020 of 8 September 2020 and report no. 42/2020 of 14 September 2020. The changes
introduced with Annex no. 1 to the Agreement were presented by the Issuer in report no. 4/2022 of 11 February 2022.
32.4 Impact of the war between Ukraine and Russia on the Group's operations
The Russian-Ukrainian conflict that began with military actions on 24 March 2022 did not have a significant impact on the
financial results of the Toya S.A. in 2021. The Company did not have any assets in Ukraine, Russia or Belarus, and the
transactions in 2021 with clients based there were short-term and were settled as at the date of publication of this report
The Company does not rule out that the ongoing conflict may have a direct impact on the financial results in the financial
year 2022, but from today's perspective, it may be immaterial due to the large geographical diversification of sales of
goods offered by the TOYA S.A. Throughout 2021, the Company’s total sales to customers from countries directly involved
in the conflict (Russia, Belarus, Ukraine) accounted for approximately 10% of the Company’s turnover. The Company
estimates that the impact of the conflict on the Company’s future results will depend, inter alia, on the duration of the
war and economic and political sanctions imposed by the international communities.
The Company estimates that the conflict in Ukraine may also have an indirect impact on the global economic downturn,
but it is currently impossible to estimate the impact of this situation on future financial results due to its complexity and
the possible various outcomes of the conflict.
Management Board of Toya S.A.
Date
Name and surname
Position
Signature
24.03.2022
Grzegorz Pinkosz
President of the
Management Board
24.03.2022
Maciej Lubnauer
Vice-President of the
Management Board
24.03.2022
Robert Borys
Vice-President of the
Management Board
Person responsible for bookkeeping:
Date
Name and surname
Position
Signature
24.03.2022
Iwona Banik
Chief Accountant