TOYA S.A.
Financial statements for the financial year ended
31 December 2022
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(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 statement ................................................................. 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
6. Financial instruments ......................................................................................................................................... 28
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
3
7. Property, plant and equipment .......................................................................................................................... 29
8. Intangible assets ................................................................................................................................................. 31
9. Right-of-use assets ............................................................................................................................................. 32
10. Investments in subsidiaries ................................................................................................................................ 33
11. Inventory ............................................................................................................................................................ 36
12. Trade and other short-term receivables ............................................................................................................. 36
13. Cash and cash equivalents .................................................................................................................................. 38
14. Additional explanation to cash flow statement .................................................................................................. 39
15. Share capital ....................................................................................................................................................... 40
16. Retained earnings and dividend per share .......................................................................................................... 40
17. Loans and borrowings liabilities ......................................................................................................................... 41
18. Trade and other payables ................................................................................................................................... 44
19. Liabilities from employee benefits ..................................................................................................................... 44
20. Lease liabilities ................................................................................................................................................... 46
21. Provisions ........................................................................................................................................................... 47
22. Operating segments ........................................................................................................................................... 47
23. Sales revenue ..................................................................................................................................................... 48
24. Costs by type and cost of goods sold .................................................................................................................. 49
25. Cost of employee benefits .................................................................................................................................. 50
26. Other operating revenue and expenses .............................................................................................................. 50
27. Financial revenues and expenses ........................................................................................................................ 50
28. Income tax.......................................................................................................................................................... 51
29. Earnings per share .............................................................................................................................................. 54
30. Financial guarantees granted and received ........................................................................................................ 54
31. Transactions with related entities ...................................................................................................................... 55
32. Material events subsequent to the end of reporting period ............................................................................... 56
32.1 Change in the composition of the Audit Committee ........................................................................................ 56
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(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
2022
31 December
2021
ASSETS
Note
Property, plant and equipment
0
17,715
17,419
Intangible assets
8
3,776
3,189
Right-of-use assets
9
12,865
14,121
Investments in subsidiaries
0
70,803
52,984
Deferred income tax assets
28
1,954
1,810
Non-current assets
107,113
89,523
Inventory
11
247,870
285,560
Trade and other receivables
0
60,186
33,602
Current income tax receivables
847
-
Cash and cash equivalents
13
1,386
1,229
Current assets
310,289
320,391
Total assets
417,402
409,914
EQUITY AND LIABILITIES
Share capital
0
7,504
7,504
Share premium
35,677
35,677
Reserve capital
329
329
Other capitals
(73)
(209)
Retain earnings
16
248,104
202,035
Equity
291,541
245,336
Liabilities from loans
17
17,143
10,049
Lease liabilities
20
5,494
6,649
Liabilities from employee benefits
19
566
678
Other long-term liabilities
32
35
Long-term liabilities
23,235
17,411
Trade and other payables
18
22,664
38,805
Liabilities from employee benefits
19
7,264
7,402
Liabilities from loans
17
65,024
86,904
Lease liabilities
20
6,551
7,015
Liabilities from current income tax
-
5,990
Provisions
21
1,123
1,051
Short-term liabilities
102,626
147,167
Total liabilities
125,861
164,578
Total equity and liabilities
417,402
409,914
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(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 2022
12 months ended
31 December 2021
Revenue from sales of goods
0, 23
594,310
543,098
Cost of goods sold
24
(434,521)
(383,649)
Gross profit
159,789
159,449
Selling costs
24
(73,143)
(61,429)
Administrative expenses
24
(21,190)
(18,843)
Expected credit losses
0
(12)
65
Other operating revenue
26
1,363
434
Other operating expenses
26
(386)
(275)
Operating profit
66,421
79,401
Financial revenue
27
3
3
Financial expenses
27
(8,877)
(1,013)
Profit before tax
57,547
78,391
Income tax
28
(11,478)
(15,149)
Net profit
46,069
63,242
Items that cannot be transferred to profit or loss
Actuarial gains or losses
19
168
(19)
Income tax on other comprehensive income
(32)
4
Other net comprehensive income
136
(15)
Total net comprehensive income for the financial year
46,205
63,227
Net profit for the period attributable to shareholders of the Company
46,069
63,242
Comprehensive income for the period attributable to shareholders of
the Company
46,205
63,227
Earnings per share
12 months ended
31 December 2022
12 months ended
31 December 2021
Basic earnings per share in PLN
29
0.61
0.84
- from continuing operations
0.61
0.84
- from discontinued operations
-
-
Diluted earnings per share in PLN
29
0.61
0.84
- from continuing operations
0.61
0.84
- from discontinued operations
-
-
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(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
Sas at 1 January 2022
7,504
35,677
329
(209)
202,035
245,336
Comprehensive income
Net profit
-
-
-
-
46,069
46,069
Other comprehensive income
-
-
-
136
-
136
Total comprehensive income
-
-
-
136
46,069
46,205
Transactions with owners
Payment of dividend
-
-
-
-
-
-
Total transactions with owners
-
-
-
-
-
-
As at 31 December 2022
7,504
35,677
329
(73)
248,104
291,541
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
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(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 2022
12 months ended
31 December 2021
Cash flows from operating activities
Profit before tax
57,547
78,391
Adjustments for:
Amortisation and depreciation
24
9,276
8,782
Net interest
27
8,877
1,009
Profit/Loss on investing activities
26
(29)
(40)
Foreign exchange gains/losses
2,016
1,135
Other adjustments
(3)
3
Changes in balance sheet items:
Change in trade and other receivables
14
(26,584)
2,577
Change in inventories
14
37,690
(103,529)
Change in provisions
14
72
(9)
Change in trade and other payables
14
(16,141)
10,085
Change in employee benefit liabilities
14
(82)
1,601
Income tax paid
(18,491)
(13,769)
Net cash from operating activities
54,148
(13,764)
Cash flows from investing activities
Sale of property, plant and equipment
67
59
Purchase of property, plant and equipment and intangible assets
(3,801)
(2,765)
Purchase of shares in subsidiaries
(19,769)
(19,177)
Net cash from investing activities
(23,503)
(21,883)
Cash flows from financing activities
Proceeds from loans
17
16,554
65,351
Repayments of loans
17
(31,675)
-
Repayment of lease liabilities
20
(6,826)
(6,483)
Interest paid on loans
17
(7,819)
(359)
Interests paid on leases
20
(722)
(455)
Dividends paid
-
(21,762)
Net cash from financing activities
(30,488)
36,292
Change in net cash and cash equivalents
157
645
Balance sheet change in cash and cash equivalents, including:
157
645
- change in cash due to exchange rate differences
-
-
Cash and cash equivalents at the beginning of the period
13
1,229
584
Cash and cash equivalents at the end of the period
13
1,386
1,229
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(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 2022, TOYA S.A. operates one branch – in Nadarzyn.
The Company’s Statistical Identification Number (REGON) is 932093253, the Nadarzyn Branch has been assigned the
Statistical Identification Number (REGON): 932093253-00031.
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, Ukraine, Baltic
countries, Hungary, Belarus, Moldova, Czech Republic, Bulgaria, Russia and Germany). 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 2022 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 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
9
On 27 January 2022, the Supervisory Board appointed Mr. Robert Borys to act as the Vice-President of the
Management Board. From that date and until the date of approval of these financial statements for publication, the
Management Board was composed of the following members:
• Grzegorz Pinkosz President of the Management Board;
• Maciej Lubnauer Vice-President of the Management Board;
• Robert Borys Vice-President of the Management Board.
In the period from 1 January 2022 to 31 December 2022 and until the date of approval of these financial statements for
publication, the Supervisory Board of the Parent Company was composed of the following members:
• Piotr Mondalski President of the Supervisory Board;
• Jan Szmidt Vice-President of the Supervisory Board;
• Dariusz Górka Member of the Supervisory Board;
• Michał Kobus Member of the Supervisory Board;
• Grzegorz Maciąg Member of the Supervisory Board;
• Wojciech Bartłomiej Papierak Member of the Supervisory Board;
• Beata Szmidt Member of the Supervisory Board.
These financial statements of the Company cover the year ended on 31 December 2022. Comparative data is
presented:
• as at 31 December 2021 - for the statement of financial position;
• for the period from 1 January 2021 to 31 December 2021 - 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 2022 were approved for publication by the
Management Board on 23 March 2023.
The Company has also prepared the consolidated financial statements for the year ended 31 December 2022, which
were approved for publication by the Management Board on 23 March 2023.
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 2022 have been prepared in
accordance with the International Financial Reporting Standards (“IFRS”) and interpretations issued by the International
Accounting Standards Board, as adopted by the European Union (“EU”).
These 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 31
December 2022.
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 2022, which were described below.
These financial statements have been prepared in accordance with the historical cost convention.
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
10
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 2022.
The EU IFRS comprise all International Accounting Standards, International Financial Reporting Standards and related
Interpretations, excluding Standards and Interpretations listed below, which are awaiting approval by the European
Union.
a) New standards, interpretations and amendments to existing standards effective in 2022
• Amendments to IFRS 3 Business Combinations, IAS 16 Property, Plant and Equipment, IAS 37 Provisions,
Contingent Liabilities and Contingent Assets and Amendments to International Financial Reporting Standards 2018-
2020
The package of changes includes three changes to the standards:
• updates the reference made in IFRS 3 Business Combinations to the Conceptual Framework for the
Preparation and Presentation of Financial Statements without changing the accounting requirements for
business combinations;
• excludes the possibility of reducing the cost of tangible fixed assets by the amounts received from the sale of
products produced in the period when the entity prepares the item of tangible fixed assets for its intended
use. Such revenues and related costs should be recognized in the profit and loss account for the period (IAS
16);
• explains what costs of meeting contractual obligations the entity takes into account when assessing whether a
given contract will give rise to liabilities (IAS 37).
The package also includes Amendments to the International Financial Reporting Standards 2018-2020, which contain
clarifications and specify the provisions of the standards in the field of IFRS 1 First-time Adoption of International
Financial Reporting Standards, IFRS 9 Financial Instruments, IAS 41 Agriculture and examples illustrating IFRS 16 Leases.
The above changes did not have a significant impact on the consolidated financial statements of the Group.
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(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 2022
Standards and Interpretations
Type of anticipated change in accounting policies
Possible impact on the financial
statements
Amendments to IAS 1 Presentation of
Financial Statements and IFRS Practice
Statement 2: Making materiality
judgements
(effective for annual periods beginning
on or after 1 January 2023, with earlier
adoption permitted)
Amendments to IAS 1 require companies to disclose their
material accounting policy information rather than their
significant accounting policies.
The above Amendments are not
expected to have a significant impact
on the financial statements of the
Company.
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.
Amendments to IAS 12 Income Taxes:
Deferred Tax Related to Assets and
Liabilities arising from a Single
Transaction
(effective for annual periods beginning
on or after 1 January 2023, with earlier
adoption permitted)
The amendments narrow the scope of application of the
exemption from the initial recognition of deferred tax in order
to exclude transactions that give rise to temporary differences
in equal amounts or that offset each other - for example, leases
and liquidation liabilities. In the case of leases and liquidation
liabilities, the related deferred tax assets and liabilities should
be recognized from the beginning of the earliest comparative
period presented and any cumulative effect is recognized as an
adjustment to retained earnings or other components of equity
at that date. For all other transactions, the changes apply to
transactions that occur after the beginning of the earliest
period presented.
The Company accounts for deferred
tax on lease and liquidation liabilities
using the "integrally related"
approach, which results in a similar
effect as the introduced changes,
therefore no significant impact on the
financial statements is expected.
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
12
Standards and Interpretations awaiting EU endorsement
Standards and Interpretations
Type of anticipated change in accounting policies
Possible impact on the financial
statements
Amendments to IFRS 10 and IAS 28
Sale or contribution of assets
between an investor and its
associate or joint venture
(Effective date deferred
indefinitely. Available for optional
adoption in IFRS financial
statements. The European
Commission has decided to defer
approval indefinitely; it is unlikely
to be endorsed by the EU in the
foreseeable future)
The amendments clarify that in the case of a transaction involving
an associate or joint venture, the scope of recognition of profit or
loss depends on whether the assets sold or contributed constitute a
business, in such a way that:
• a full gain or loss is recognized when the transaction between
the investor and its associate or joint venture involves the
transfer of an asset or an asset constituting a business
(regardless of whether they are located in a subsidiary or not),
while
a partial gain or loss is recognized when the transaction
between the investor and its associate or joint venture involves
assets that do not constitute business, even if those assets are
held in a subsidiary.
The changes are not expected to have
a significant impact on the financial
statements of the Company, as the
Company has no associates or joint
ventures.
Amendments to IAS 1
Presentation of Financial
Statements: Current or Non-
Current Liabilities containing
conditions regarding financial
ratios specified in the loan
agreement (covenants)
(Applicable for annual periods
beginning on or after 1 January
2024, and should be applied
retrospectively.
Early application is allowed.
Specific transitional requirements
apply for entities that have
already adopted the previously
issued but not yet effective 2020
Amendments.
In accordance with the applicable requirements of IAS 1, entities
classify a liability as short-term when they do not have an
unconditional right to defer settlement of the liability for at least 12
months from the balance sheet date. The changes introduced in
2020 removed the requirement that the right must be
unconditional, and instead require that the right to defer payment
exists at the reporting date and be substantiated (the classification
of liabilities is not affected by management's intentions or
expectations as to whether the company will use the right to defer
settlement of the liability or decides to settle the liability earlier).
The changes introduced in 2022 also specify that if the right to defer
the settlement of a liability depends on the company meeting the
conditions regarding the ratios set out in the loan agreement
(covenants), the presentation of the liability as short-term or long-
term. Contracts that the company must comply with after the
balance sheet date do not affect the classification of the liability at
that date. However, the amendments require entities to disclose
information about these future contracts to help users understand
the risk that these obligations may fall due within 12 months after
the balance sheet date. The amendments also clarify how an entity
classifies a liability that may be settled in exchange for treasury
shares (e.g. convertible debt).
The Amendments are not expected to
have a significant impact on the
financial statements of the Company.
Amendments to IFRS 16 Leases:
Lease liability under sale and
leaseback transactions
(Applicable for annual periods
beginning on or after 1 January
2024)
Earlier application is allowed.
Amendments to IFRS 16 Leases affect the manner in which the
seller-lessor settles variable lease payments under sale and
leaseback transactions. The changes introduce a new model of
accounting for variable payments and will require seller-lessees to
reassess and possibly convert sales and leaseback transactions
entered into from 2019.
The changes confirm the following:
• at initial recognition, the seller-lessee includes variable
lease payments when measuring the lease liability arising
from a sale and leaseback transaction;
• after initial recognition, the seller-lessee applies the
general requirements for subsequent recognition of the
lease liability in such a way that it does not recognize any
gains or losses related to the retained right of use.
The seller-lessee may adopt different approaches that meet the new
requirements for subsequent valuation. These changes do not
change the accounting for leases other than those resulting from
sale and leaseback transactions.
The Company does not expect the
Standard to have a significant impact
on its financial statements.
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
13
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.
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.
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
14
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.
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 2022
(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.
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.
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
16
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 2022 and 2021 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 2022
(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 2022
(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 2.211). 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 03).
According to the regulations of European Parliament and other laws in force, i.e. EU Waste Electrical and Electronic
Equipment Act, the Company, as entity that places electrical and electronic equipment, batteries, containers and
products such as oils and tires on the market, is subject to Extended Producer Responsibility, under which it is
responsible for the products at the stage when it becomes a waste. The Parent Company is obliged to finance a system
for collecting and recycling waste generated from products and packaging introduced by the Company. These
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
19
obligations are fulfilled by concluding an agreement with Recovery Organizations. Costs arising from these contracts are
recognized throughout the period and settled at the end of the financial year after receipt of the final invoice.
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.
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.
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
20
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 2022
(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 statement
Foreign currency items of the statement of financial position were translated using the following exchange rates:
Currency
31 December 2022
31 December 2021
1 EUR
4.6899
4.5994
1 USD
4.018
4.0600
1 CNY
0.6348
0.6390
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 257 thousand
as at 31 December 2022 (PLN 242 thousand as at 31 December 2021).
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(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 2.20; 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 2022
(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 2022
31 December 2021
PLN
84%
66%
USD
7%
26%
CNY
9%
8%
TOTAL
100%
100%
The Company may use EUR and USD denominated credit facilities available under executed credit facility agreements.
As at 31 December 2022 and 31 December 2021, the Company has no loan liabilities denominated in foreign currencies.
As at 31 December 2022 cash in foreign currencies (CNY, EUR and USD) represented 17% of the total cash (as at 31
December 2021 - 50%).
37% of the Company’s revenue is generated from exports, at prices denominated in foreign currencies — mainly USD.
As at 31 December 2022, trade receivables in USD represented 36% of the total trade receivables (46% as at a 31
December 2021).
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 2022 and 31 December 2021 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 2022
USD
EUR
CNY
TOTAL
Trade and other receivables
2,020
121
-
2,141
Trade and other payables
(98)
2
(120)
(216)
TOATL impact on 2022 result
1,922
123
(120)
1,925
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)
TOATL impact on 2021 result
734
48
(268)
514
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.
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
24
Risk of interest rate changes affecting cash flows and fair values
As at 31 December 2022 and 31 December 2021 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 2022, all liabilities under bank loans bear
interest at variable rates (which was also the case as at 31 December 2021).
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 2022 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
(164)
164
Total for 2022
(164)
164
+20 basis points
-20 basis points
Effect on profit before income tax
Effect on profit before income tax
Financial liabilities
Variable interest rate loans
(194)
194
Total for 2021
(194)
194
The 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,
distributors and authorised retail stores). The Company sells its products on the domestic and foreign markets – mainly
countries in Central, Eastern and Southern Europe (Romania, Ukraine, Baltic countries, Hungary, Belarus, Moldova, the
Czech Republic, Bulgaria, Russia and Germany).
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
25
The table below presents the Company's sales structure by customer group and market:
Share in sales revenues
2022
2021
Domestic sales – wholesale market
44%
42%
Domestic sales – retail chains
11%
13%
Domestic sales – other
8%
7%
Export
37%
38%
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 87.5 % 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 2022 and 2021 the concentration of receivables in the wholesale
channel was at a similar level - 75% of sales was executed by 18 in 2022 and 2021. 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 2022, 60% of the trade receivables were insured (31 December 2021 - 58%). 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 that are neither past due nor impaired can be estimated by reference to external
credit ratings or information on historical counterparty’s payment default. Cash is deposited in banks rated BBB -, BBB
and A- (EuroRating rating agency). With regard to trade receivables, the Company cooperates with reputable
organizations that provide tools for credit risk analysis, and also monitors contractors' delays in repayment on an
ongoing basis.
The maximum credit risk exposure is approximately equal to the book value of trade receivables, net of receivables
insured and cash and cash equivalents. As at 31 December 2022, the maximum credit risk exposure was PLN 22,056
thousand (as at 31 December 2021: PLN 13,866 thousand).
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(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 2022
31 December 2021
Current assets
310,289
320,391
Current liabilities
102,626
147,167
2022
2021
Cash flow from operating activities
54,148
(13,764)
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(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
25,150
5,825
39,893
18,477
-
-
89,345
Trade and other payables
13,385
-
-
-
-
-
13,385
Lease liabilities
1,885
1,845
3,477
3,977
399
4,004
15,587
Warranty liability
539
-
-
-
-
-
539
As at 31 December 2022
40,959
7,670
43,370
22,454
399
4,004
118,856
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
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(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 2022
31 December 2021
Non-current assets
107,113
89,523
Equity
291,541
245,336
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 2022
31 December 2021
Equity
291,541
245,336
Total assets
417,402
409,914
Equity ratio
70%
60%
In the period covered by these financial statements, the Company implemented the above objective.
6. Financial instruments
As at 31 December 2022
Financial assets
Financial liabilities
Measured at amortised
cost
Measured at amortised
cost
Trade receivables
54,497
-
Cash and cash equivalents
1,386
-
Trade and other payables
-
13,417
Loans and borrowings
-
82,167
Lease liabilities
-
12,045
TOTAL
55,883
107,629
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
Loans and borrowings
-
96,953
Lease liabilities
-
13,664
TOTAL
33,706
144,322
Revenue and expense recognised in the 2022 and 2021 financial results, relating to financial assets or financial liabilities
not measured at fair value though profit or loss are presented below:
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
29
12 months ended 31 December 2022
Financial assets
Financial liabilities
Interest expenses
-
8,877
Profits on exchange differences
5,730
6,385
Losses on exchange differences
(4,475)
(6,617)
Establishment of impairment write-downs
12
-
Total net profit/ (loss)
1,267
8,645
12 months ended 31 December 2021
Financial assets
Financial liabilities
Interest expenses
-
1,013
Profits on exchange differences
3,820
3,915
Losses on exchange differences
(1,686)
(5,913)
Reversal of impairment write-downs
(65)
-
Total net profit/ (loss)
2,069
(985)
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
2022
31 December
2021
Land
2,907
2,907
Buildings and structures
7,452
7,690
Plant and equipment
3,515
2,505
Vehicles
87
93
Other
3,271
3,536
Total
17,232
16,731
Property, plant and equipment not transferred for use
483
688
Total property, plant and equipment
17,715
17,419
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 2022 and 2021, the Company did not capitalise borrowing costs due to the insignificancy of these amounts.
As at 31 December 2022, the Company had no commitments to expenditure on property, plant and equipment.
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(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
Sas at 1 January 2022
2,907
13,191
7,453
666
10,371
688
35,276
Purchase
-
-
-
-
278
2,321
2,599
Liquidation
-
(6)
(1,400)
(134)
(3,213)
-
(4,753)
Reclassification
-
211
4,207
94
208
(2,526)
2,194
As at 31 December 2022
2,907
13,396
10,260
626
7,644
483
35,316
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
Accumulated depreciation
As at 1 January 2022
-
5,501
4,948
573
6,835
-
17,857
Depreciation for the period
-
445
1,066
27
745
-
2,283
Decreases
-
(2)
(1,392)
(110)
(3,207)
-
(4,711)
Reclassification
-
2,123
49
-
-
2,172
As at 31 December 2022
-
5,944
6,745
539
4,373
-
17,601
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
Carrying amount
As at 31 December 2022
2,907
7,452
3,515
87
3,271
483
17,715
As at 31 December 2021
2,907
7,690
2,505
93
3,536
688
17,419
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
31
8. Intangible assets
31 December
2022
31 December
2021
Licences, concessions and patents, including:
2,301
2,398
– software
2,301
2,398
Other - trademarks and industrial designs
328
303
Total
2,629
2,701
Intangible assets under development
1,147
488
Total intangible assets
3,776
3,189
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 2022
5,255
572
488
6,315
Purchase
-
-
1,207
1,207
Liquidation
(76)
-
-
(76)
Reclassification
452
96
(548)
-
As at 31 December 2022
5,631
668
1,147
7,446
As at 1 January 2021
4,837
477
441
5,755
Purchase
-
-
560
560
Reclassification
418
95
(513)
-
As at 31 December 2021
5,255
572
488
6,315
Accumulated amortization
As at 1 January 2022
2,857
269
-
3,126
Amortization for the period
549
71
-
620
Liquidation
(76)
-
-
(76)
As at 31 December 2022
3,330
340
-
3,670
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
Carrying amount
As at 31 December 2022
2,301
328
1,147
3,776
As at 31 December 2021
2,398
303
488
3,189
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(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
2022
31 December
2021
Perpetual usufruct right to land
1,796
1,821
Buildings and structures
5,297
4,340
Plant and equipment
1,458
1,978
Vehicles
4,314
5,982
Total
12,865
14,121
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 2022
1,897
12,972
3,898
8,117
26,884
Modification of lease contracts
-
5,103
-
36
5,139
Reclassification - repurchase
-
-
(2,123)
(71)
(2,194)
As at 31 December 2022
1,897
18,075
1,775
8,082
29,829
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
Accumulated depreciation
As at 1 January 2022
76
8,632
1,920
2,135
12,763
Depreciation
25
4,146
520
1,682
6,373
Reclassification - repurchase
-
-
(2,123)
(49)
(2,172)
As at 31 December 2022
101
12,778
317
3,768
16,964
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
Carrying amount
As at 31 December 2022
1,796
5,297
1,458
4,314
12,865
As at 31 December 2021
1,821
4,340
1,978
5,982
14,121
In 2022, the Company did not conclude any new lease agreements. The following agreements have been modified:
• warehouse lease agreement – the lease period was extended as a result of the annex;
right-of-use assets and lease liabilities were increased by PLN 5,091 thousand; moreover, the value of assets and
liabilities was increased as a result of indexation by PLN 12 thousand;
• car lease agreement – as a result of the change in the interest rate, the expected cash
flows changed, as a result of which the right-of-use assets increased by PLN 36 thousand.
The reclassification resulted from the purchase made after the end of the lease period in accordance with the terms
provided for in the contracts. As a result, these assets were transferred to the company's fixed assets.
Lease liabilities are presented in note 20.
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(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 2022 and 31 December 2021 the Company held shares in the following entities:
Country
Type of equity link
% of shares and votes
held
Value of shares
31 December 2022
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
48,172
70,803
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
On 17 January 2022, an increase in the share capital of the subsidiary Yato Tools (Jiaxing) Co., Ltd. was registered in the
Chinese Register of Entrepreneurs - from USD 8,000 thousand up to USD 12,500 thousand, i.e. by PLN 17,819 thousand.
The payment was made in 3 tranches in 2022 and as at 31 December 2022 there is no liability due to the purchase of
shares.
The Company has not identified any indications of impairment of its investments in subsidiaries.
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
34
•
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
35
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
2022
Yato Tools (Jiaxing) Co. Ltd.
44,689
86,477
80,910
546
49,710
344,400
(328,283)
16,117
Yato Tools (Shanghai) Co. Ltd.
4,826
66,358
36,613
880
33,691
142,863
(141,789)
1,074
Toya Romania S.A.
15,866
61,822
40,920
10,869
25,898
88,671
(81,188)
7,483
TOTAL
65,381
214,657
158,443
12,295
109,299
575,934
(551,260)
24,674
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
(*) 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 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
36
11. Inventory
31 December
2022
31 December
2021
Goods for resale at warehouse and in transit
247,780
285,022
Asset for expected returns from customers
90
538
Total inventory (carrying amount)
247,870
285,560
Revaluation write-down for goods at warehouse to net recoverable amount
2,141
1,384
Gross inventories
250,011
286,944
Changes in the write-down of inventories to net realizable value are presented in the table below:
2022
2021
As at 1 January
1,384
1,604
Increase
757
-
Reversal/utilisation
-
(220)
As at 31 December
2,141
1,384
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
2022
31 December
2021
Trade receivables from related parties
20,130
13,741
Trade receivables from third parties
36,317
20,722
Total trade receivables
56,447
34,463
Other receivables from third parties
44
38
Advances for deliveries
4,760
-
Advances paid to other entities
34
175
Prepayments and deferred costs
887
948
Total gross receivables
62,172
35,624
Impairment write-downs of doubtful trade receivables
(1,950)
(1,986)
Impairment write-downs of other receivables
(36)
(36)
Total net receivables
60,186
33,602
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 36 days.
Changes in gross trade receivables are summarized in table below:
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
37
Receivables analysed
in group
Receivables analysed
individually
Total
As at 1 January 2022
32,763
1,700
34,463
Increase due to sales
682,297
-
682,297
Interest and litigation costs
1
(1)
-
Receivables written off
-
(50)
(50)
Receivables classified individually as irrecoverable
(8)
8
-
Collected receivables
(657,821)
(6)
(657,827)
Compensated receivables
(943)
-
(943)
Other changes, including currency translation differences
(1,489)
(4)
(1,493)
As at 31 December 2022
54,800
1,647
56,447
Changes in the write-downs of trade receivables are presented in the table below:
2022
2021
As at 1 January
1,986
2,051
Increase
12
-
Utilisation
(48)
-
Reversal
-
(65)
As at 31 December
1,950
1,986
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 2022
Total
Not overdue
0-30 days
31-60 days
61-90 days
over 90 days
Gross trade receivables as at
31 December 2022
56,447
52,914
1,646
125
101
1,661
Group analysis – gross value
54,800
52,914
1,646
125
101
14
Expected credit loss ratio
0,5%-5%
1%-10%
5%-25%
10%-50%
20%-100%
Expected credit losses
(307)
(256)
(21)
(7)
(13)
(10)
Individual analysis – gross value
1,647
-
-
-
-
1,647
Impairment loss on individual
customers
(1,643)
-
-
-
-
(1,643)
Total expected credit losses
(1,950)
(256)
(21)
(7)
(13)
(1,653)
Total net trade receivables
54,497
52,658
1,625
118
88
8
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
38
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
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
2022
31 December
2021
Cash in hand and at bank
1,386
1,229
Total cash and cash equivalents
1,386
1,229
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 2022, these funds
amounted to PLN 1 thousand and as at 31 December 2021 to PLN 50 thousand. The Company may use these funds only
in the manner provided for by the law with regard to the ZFŚS funds.
As a result of implementation of VAT split payment mechanism, the Company has dedicated VAT bank accounts, where
VAT amounts from invoices settled by the vendors of TOYA S.A. will be transferred. Funds collected in these VAT
accounts may only be used for VAT settlements concerning invoices received and settlements of tax liabilities. As at 31
December 2022, the cash balance in these VAT accounts totalled PLN 1,141 thousand (31 December 2021: PLN 570
thousand). 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 2022 and 31 December 2021, the Company did not have any
cash of limited disposability.
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
39
14. Additional explanation to 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 2022
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
(26,584)
-
-
(26,584)
Change in inventories
37,690
-
-
37,690
Change in provisions
72
-
-
72
Change in trade and other payables
(16,144)
3
-
(16,141)
Change in employee benefit liabilities
(250)
-
168
(82)
Change in cash
157
-
157
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
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
40
15. Share capital
As at 31 December 2022, the share capital amounts to PLN 7,504,222.60 and comprises 75,042,226 shares with a par
value of PLN 0.1 each.
All of the shares are paid up. The ownership structure and the percentage of the Company's shares held as at
31 December 2022, based on the information provided to the Company by the shareholders, are presented in the table
below:
Name
Status
Number of shares
Type of shares
Par value per
share (PLN)
Par value of the
shares (PLN)
Structure (%)
Jan Szmidt
natural person
28,284,304
ordinary bearer
0.1
2,828,430.40
37.69%
Romuald Szałagan
natural person
9,652,290
ordinary bearer
0.1
965,229.00
12.86%
Generali OFE
legal person
5,001,147
ordinary bearer
0.1
500,114.70
6.66%
Other
- share below 5%
not applicable
32,104,485
ordinary bearer
0.1
3,210,448.50
42.79%
TOTAL
75,042,226
7,504,222.60
100.00%
16. Retained earnings and dividend per share
On 28 June 2022, the General Meeting of Shareholders of Toya S.A. approved TOYA's financial statements for 2021, and
also decided to transfer the profit for 2021 in the amount of PLN 63,243 thousand to supplementary capital.
In line with the provisions of the Commercial Companies Code, retained earnings are used to create statutory reserve
funds, to which at least 8% of the profit generated in a given financial year is transferred until the statutory reserve
funds reach at least one-third of the share capital, i.e. in the case of the Company – PLN 2,501 thousand as at
31 December 2022. These statutory reserve funds are exempt from distribution among shareholders and may only be
used to cover losses. As at 31 December 2022 and 31 December 2021, the supplementary capital was created in the
required amount.
The retained earnings as at 31 December 2022 represent result for the current year, supplementary capital created
from the 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
2022
2021
Dividend paid
-
21,762
Number of ordinary shares (’000)
75,042
75,042
Dividend per share (PLN)
-
0.29
Management Board of the Company did not provide recommendation on 2022 profit distribution.
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
41
17. Loans and borrowings liabilities
31 December
2022
31 December
2021
Bank loan liabilities, including
82,167
96,953
– long-term
17,143
10,049
– short-term
65,024
86,904
Changes in bank loans are presented in the table below:
Revolving bank
loans
Non-revolving bank
loans
Bank loans
TOTAL
As at 1 January 2021
27,141
4,360
31,501
Increase in loans
46,264
19,087
65,351
Interest for the period (note 27)
297
163
460
Interest repaid
(247)
(112)
(359)
As at 31 December 2021
73,455
23,498
96,953
Increase in loans
-
16,554
16,554
Interest for the period (note 27)
6,150
2,004
8,154
Interest repaid
(6,001)
(1,818)
(7,819)
Loans repaid
(31,675)
(31,675)
As at 31 December 2022
41,929
40,238
82,167
– long-term
-
17,143
17,143
– short-term
41,929
23,095
65,024
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
42
Description of loan agreements:
Object and value of agreement
Name of the Bank / covering bonds
/ granting loans
Loan amount as
per agreement as
at 31 December
2022
Amount
outstanding as at
31 December
2022 (*)
Amount
outstanding as at
31 December
2021 (*)
Current interest rate
Date of expiry
1. Overdraft facility agreement No BDK/KR-
RB/000054601/0641/10 of 22 December 2010
Bank Handlowy w Warszawie S.A.
70,000
21,159
29,310
WIBOR 1 M + bank’s margin
15 December 2023
2. Overdraft credit facility agreement No 09/030/19/Z/VV
mBank S.A. with its registered office
in Warsaw
60,000
18,991
30,453
WIBOR 1 T + bank’s margin
30 March 2023
3. Overdraft credit facility agreement No
WAR/8833/20/326/CB
BNP Paribas Bank Polska S.A. with
its registered office in Warsaw
25,000
1,779
13,692
WIBOR 1 M + bank’s margin
15 November 2023
4. Non-revolving loan agreement no WAR/8833/20/327/CB
BNP Paribas Bank Polska S.A. with
its registered office in Warsaw
40,000
40,238(**)
23,498
WIBOR 3 M + bank’s margin
30 September 2024
Total liabilities, of which:
195,000
82,167
96,953
– short-term portion
177,857
65,024
86,904
– long-term portion
17,143
17,143
10,049
(*) the amount used is presented together with interest due and not repaid as at 31 December 2022 and 2021
(**) including PLN 40,000 thousand of the loan used and PLN 238 thousand of accrued and unpaid interest as at 31 December 2022
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
43
During the year ended on 31 December 2022, there were no significant changes to the contractual terms of the loans or
expected cash flows.
The bank margins relating to the loans listed above do not exceed 1%.
The value of mortgage collaterals was determined as a sum of collaterals established for individual banks, in the
amounts required by the banks (in the amount resulting from the contract). The book value of mortgaged assets was
PLN 10,359 thousand as at 31 December 2022 (PLN 10,541 thousand as at 31 December 2021). The value of the
assignment of receivables in the amount of PLN 46,111 thousand (PLN 19,281 thousand as at 31 December 2021) 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 2022, the weighted average cost of loans (excluding commissions) was 8.99% (as
at 31 December 2021: 2.88%).
Defaults under loan agreements
As at 31 December 2022, 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 and debt ratios at an agreed level throughout the
lending period. If the condition of maintaining the ratios at the level specified by the bank is not met, the bank has the
right to terminate the loan 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 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
44
18. Trade and other payables
31 December
2022
31 December
2021
Trade payables to related parties
1,196
2,780
Trade payables to third parties
12,008
29,951
Total trade payables
13,204
32,731
Tax liabilities
8,852
4,675
Liability due to expected goods returns
146
910
Prepayments received
427
460
Other payables to third parties
35
29
Total other current payables
9,460
6,074
Total
22,664
38,805
Advances received represent contractual obligations in accordance with IFRS 15.
An average payables payment period is 14 days.
During the year ended 31 December 2022, the Company recognized revenues in the amount of PLN 460 thousand,
which were classified as prepayments at the beginning of the period.
19. Liabilities from employee benefits
31 December
2022
31 December
2021
Provisions for retirement benefits, disability pensions and for death benefits
566
678
Liabilities from employee benefits – non-current portion
566
678
Provisions for retirement benefits, disability pensions and for death benefits
69
46
Payroll liabilities
5,449
5,804
Unused holidays
1,746
1,552
Liabilities from employee benefits – current portion
7,264
7,402
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 2022 and 31 December 2021 was estimated by an actuary. The basic assumptions were as follows:
Assumptions
31 December
2022
31 December
2021
Discount rate (risk-free rate)
6.73%
3.92%
Growth rate of remunerations
- in the first year
9.00%
7.00%
- in the second year
7.00%
5.50%
- in the subsequent years
5.00%
3.50%
Discount rate (risk-free rate)
3.50%
3.50%
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
45
Assumptions concerning future mortality are determined based on statistics published by the Central Statistical Office
(GUS).
The statement of actuarial gains and losses is presented below.
31 December
2022
31 December
2021
Current value of liability as at 1 January
724
650
current service cost
69
63
net interest on net liability
28
10
actuarial gains or losses, including resulting from:
(168)
19
changes in demographic assumptions
18
63
changes in financial assumptions
(169)
(94)
ex post adjustments of actuarial assumptions
(17)
50
benefits paid
(18)
(18)
Current value of liability as at 31 December
635
724
Total expenses recognised in profit or loss in respect of future employee benefits amounted to PLN 97 thousand in
2022 and PLN 73 thousand in 2021 and were recognised in administrative expenses. Actuarial losses incurred in 2022
amounted to PLN 168 thousand (in 2021: PLN 19 thousand) and were recognised in other comprehensive income.
Sensitivity analyses of liability under defined benefits (retirement benefits, disability pensions and death benefits) to
changes in main weighted estimates as at 31 December 2022 are as follows:
Assumption
Changes in the
assumption
Increase in the
assumption
Decrease in the
assumption
technical discount rate
1%
(31)
34
salary rise in the Company
1%
71
(62)
turnover ratio
1%
(27)
29
The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In
practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the
sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the
defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been
applied as when calculating the pension liability recognised within the statement of financial position.
The methods and types of assumptions used for preparing the sensitivity analysis did not change compared to the
previous period.
The table below contains the profile of the forecast cash flows in the coming years, by relevant benefits. These values
take into account the nominal amounts paid out and their probability.
name of benefit
1
st
year
2
nd
year
3
rd
year
4
th
year
5
th
year
6
th
year (and
further)
retirement benefit
58
8
14
9
65
2,790
disability pension
3
3
3
3
2
36
death benefit
12
14
16
18
17
728
total
73
25
33
30
84
3,554
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
46
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:
2022
2021
Lease liability as at 1 January
13,664
14,528
New lease contracts
-
5,584
Modification of the terms of the contract
5,138
33
Settlement of completed contracts
-
(2)
Accrued interest
723
455
Lease payments (*)
(7,548)
(6,869)
Valuation of contracts in foreign currencies and currency translation differences
68
(65)
Lease liability as at 31 December
12,045
13,664
(*) 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
2022
2021
up to 1 year
7,207
7,320
1–3 years
3,977
3,949
3–5 years
399
1,411
more than 5 years
4,004
4,124
Total
15,587
16,804
The costs resulting from lease contracts are presented below.
2022
2021
Amortization and depreciation
6,372
6,024
Interest
722
454
Exchange rate differences
69
(65)
Total
7,163
6,413
During the year ended 31 December 2022, the Company incurred costs in connection with the short-term lease
agreements in the amount of PLN 18 thousand and low-value lease agreements in the amount of PLN 31 thousand.
Total cash outflow from leases in 2022 amounted to PLN 7,597 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 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
47
21. Provisions
Provision for warranty repairs
2022
2021
As at 1 January
1,051
1,060
Provision created
1,123
1,051
Provision utilized
(1,051)
(1,060)
As at 31 December
1,123
1,051
Short-term as at 31 December
1,123
1,051
The provision for guarantee repairs is created in accordance with the policy described in note 2.20. 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 company distinguishes 4 operating and reporting segments in its operations:
– sales on the domestic market to retail chains;
– sale on the domestic market - wholesale market;
– foreign 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 2022 and in 2021 the Company did not record revenue from sale to a single external customer exceeding 10% of
total sales revenue.
As at 31 December 2022, the Company’s assets amounted to PLN 417,402 thousand (31 December 2021: PLN 409,914
thousand), and the Company’s liabilities amounted to PLN 125,861 thousand (31 December 2021: 164,578 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.
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
48
The Company has no non-current assets located abroad.
The most important geographic export directions of the Company are disclosed in note 23.
12 months ended
31 December 2022
EXPORT SALES
WHOLESALE
MARKET
RETAIL
NETWORKS
RETAIL SALES
Total
Sales revenue
Sales to external customers
218,606
259,657
69,098
46,949
594,310
Total segment revenue
218,606
259,657
69,098
46,949
594,310
Cost of goods sold
Sales to external customers
(163,591)
(193,900)
(49,377)
(27,653)
(434,521)
Total costs of goods sold
(163,591)
(193,900)
(49,377)
(27,653)
(434,521)
Gross profit
55,015
65,757
19,721
19,296
159,789
Gross profit margin
25%
25%
29%
41%
27%
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%
23. Sales revenue
12 months ended
31 December 2022
12 months ended
31December 2021
Sales of goods for resale
594,310
543,098
Total sales revenue
594,310
543,098
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
49
The geographical structure of revenues from sales has been presented below.
12 months ended
31 December 2022
12 months ended
31 December 2021
Sales revenue
Share
Sales revenue
Share
Romania
54,092
9.1%
48,120
8.9%
Ukraine
26,128
4.4%
26,919
5.0%
Baltic countries
22,399
3.8%
22,145
4.1%
Hungary
21,096
3.6%
17,213
3.2%
Belarus
18,419
3.1%
17,673
3.3%
Moldova
11,825
2.0%
9,151
1.7%
Czech Republic
11,193
1.9%
13,434
2.5%
Bulgaria
9,348
1.6%
10,212
1.9%
Russia
7,335
1.2%
7,116
1.3%
Greece
7,016
1.2%
4,604
0.8%
Germany
6,641
1.1%
9,073
1.7%
Europe – other EU countries
10,965
1.8%
12,708
2.3%
Europe – other non-EU countries
8,991
1.5%
6,840
1.3%
Other continents
3,158
0.5%
1,729
0.3%
Total export
218,606
36.8%
206,937
38.1%
Poland
375,704
63.2%
336,161
61.9%
Total sales revenue
594,310
100.0%
543,098
100.0%
24. Costs by type and cost of goods sold
12 months ended
31 December 2022
12 months ended
31 December 2021
Amortisation and depreciation
9,276
8,782
Material and energy consumption
7,100
5,588
Third-party services, including:
28,141
21,718
costs of transportation
8,080
7,003
warehouse services
3,602
162
service charges for space lease agreements
2,651
2,093
IT and telecommunications costs
2,230
2,150
costs of accessing online sales platforms
6,490
4,028
legal, audit and consulting costs
1,892
1,832
other external services
3,196
4,450
Taxes and fees
1,762
1,406
Costs of employee benefits
43,459
40,255
Other costs by type
4,595
2,523
Value of goods for resale and materials sold
434,521
383,649
Total costs by type and value of goods for resale sold
528,854
463,921
Selling costs, including:
73,143
61,429
amortisation and depreciation
7,601
7,374
costs of employee benefits
28,550
26,526
Administrative expenses, including:
21,190
18,843
amortisation and depreciation
1,675
1,408
costs of employee benefits
14,909
13,729
Cost of goods for resale sold
434,521
383,649
Total selling, administrative costs and costs of goods sold
528,854
463,921
The Company does not conduct important R&D works.
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
50
25. Cost of employee benefits
12 months ended
31 December 2022
12 months ended
31 December 2021
Salaries for employment contracts and appointment contracts
32,985
30,903
Wages of temporary workers
2,705
2,693
Cost of social insurance
6,233
5,651
Cost of provision for unused leaves
194
151
Cost of provision for retirement benefits
79
56
Cost of retirement and similar benefits paid
18
17
Cost of other employee benefits
1,245
784
Total employee benefit costs
43,459
40,255
Information on the number of employees is presented below:
26. Other operating revenue and expenses
OTHER OPERATING REVENUE
12 months ended
31 December 2022
12 months ended
31 December 2021
Surplus of FX gains over FX losses on operating activities
1,023
137
Revenue from other sales
229
106
Compensations received
14
65
Interest received
-
25
Gain on sale of property, plant and equipment
29
41
Damages on balance with received compensation
-
8
Other operating revenue
68
52
Total other operating revenue
1,364
434
OTHER OPERATING EXPENSES
12 months ended
31 December 2022
12 months ended
31 December 2021
Cost of other sales
281
179
Penalties and fines paid
1
1
Court and debt recovery fees
38
12
Donations given
55
5
Receivables written-off
1
3
Other
10
75
Total other operating expenses
386
275
27. Financial revenues and expenses
FINANCIAL REVENUE
12 months ended
31 December 2022
12 months ended
31 December 2021
Other financial revenue
3
3
Total financial revenue
3
3
FINANCIAL EXPENSES
12 months ended
31 December 2022
12 months ended
31 December 2021
Interest and commissions on loans
8,154
461
Cost of discounting long-term liabilities
-
97
Interest on lease liabilities
723
455
Total financial expenses
8,877
1,013
12 months ended
31 December 2022
12 months ended
31 December 2021
Average number of employees per full-time equivalent
324
299
Persons employed at the end of the year
330
301
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
51
28. Income tax
The reporting periods presented in these financial statements cover the following tax periods:
• from 1 January 2022 to 31 December 2022;
• from 1 January 2021 to 31 December 2021.
12 months ended
31 December 2022
12 months ended
31 December 2021
Current tax
11,654
15,008
Deferred tax
(176)
141
Total income tax
11,478
15,149
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 2022
12 months ended
31 December 2021
Profit before tax
57,547
78,391
Tax rate applicable in the period
19%
19%
Tax calculated at the applicable tax rate
10,934
14,895
Tax effect of the following items:
- permanent tax differences – costs
209
254
- temporary differences for which assets have not been created
345
-
- tax relating to the previous period
(10)
-
Tax shown in the profit and loss account
11,478
15,149
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 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
52
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 2022
Assets
Liabilities
Net
As at 1 January
2022 net
Recognised in
profit or
loss/equity
Non-current assets
Difference between tax and accounting
depreciation rates of property, plant and
equipment and intangible assets
-
786
(786)
(727)
(59)
Right-of-use assets
-
2,444
(2,444)
(2,683)
239
Current assets
Write-down of inventories
407
-
407
263
144
Asset for expected returns
-
17
(17)
(102)
85
Write-down of receivable
369
-
369
377
(8)
Balance-sheet valuation of receivables
denominated in foreign currencies
225
-
225
(61)
286
Long-term liabilities
Liabilities from finance leases
1,044
-
1,044
1,263
(219)
Provision for retirement benefits
108
-
108
129
(21)
Financial guarantees granted
6
-
6
7
(1)
Short-term liabilities
Provisions for liabilities
161
-
161
419
(258)
Balance-sheet valuation of short-term liabilities
-
6
(6)
(16)
10
Provisions for unused vacation and bonuses
1,344
-
1,344
1,387
(43)
Accrued interest
85
-
85
21
64
Lease liabilities
1,245
-
1,245
1,333
(88)
Provisions for guarantee repairs
213
-
213
200
13
Total deferred income tax, of which
5,207
3,253
1,954
1,810
144
- recognised in profit or loss
176
- recognised in equity (*)
(32)
(*) applies to deferred tax from actuarial losses recognised in other comprehensive income
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
53
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
Balance-sheet valuation of long-term liabilities
1,263
-
1,263
1,713
(450)
Liabilities from finance leases
129
-
129
120
9
Provision for retirement benefits
7
-
7
7
-
Financial guarantees granted
Short-term liabilities
419
-
419
792
(373)
Provisions for liabilities
-
16
(16)
(65)
49
Balance-sheet valuation of short-term liabilities
1,387
-
1,387
1,086
301
Provisions for unused vacation and bonuses
21
-
21
2
19
Accrued interest
1,333
-
1,333
1,047
286
Lease liabilities
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
Of the above-reported value of net deferred tax assets, the amount of PLN 374 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 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
54
29. Earnings per share
12 months ended
31 December 2022
12 months ended
31 December 2021
Net profit
46,069
63,242
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)
0.61
0.84
Earnings per share attributable to ordinary shareholders, used to calculate diluted
earnings per share
46,069
63,242
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)
0.61
0.84
Basic earnings per share were calculated by dividing the net profit by the weighted average number of ordinary shares
during the period.
As at 31 December 2022 and 2021, the Company had no dilutive factors.
30. Financial guarantees granted and received
As at 31 December 2022, 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 2024, for the amount of EUR 482,640.52
On 12 June 2019, TOYA S.A. granted a guarantee of payment of liabilities arising from warehouse and office rental
agreement by Toya Romania S.A. to the landlord up to the amount of EUR 115 thousand. The lease agreement was
concluded on 8 February 2019 and covers a period of 10 years, with the option of changing this period. The warranty
expires 3 months after the date of termination of the lease.
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 439,133
28 February 2023 (*)
2
Sopockie Towarzystwo
Ubezpieczeń ERGO
Hestia S.A.
Contract on granting a customs debt
guarantee
The security for repayment of custom debts, taxes
and other fees associated with goods released
into free circulation based on customs
declaration, in the amount of PLN 270,000
31 December 2023
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
55
31. Transactions with related entities
In 2022 and 2021, 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,
• Robert Borys – Vice-President of the Management Board from 27.02.2022 – 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 2022 and 31 December 2021, 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:
2022
2021
Remunerations and benefits under employment contracts and appointment contracts - Management Board
3,167
2,497
Social insurance (ZUS) costs borne by the Company - Management Board
38
9
Remunerations for positions held - Supervisory Board
612
612
Social insurance (ZUS) costs borne by the Company - Supervisory Board
102
103
Employee Capital Plans (PPK) financed by the Company
6
6
The dividend paid to key management personnel is presented below:
2022
2021
Management Board
-
61
Supervisory Board
-
9,110
Apart from the transactions listed above, the Company did not conduct any transactions with key management
personnel.
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
56
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
31.12.2022
1.01.2022 - 31.12.2022
Subsidiaries
20,128
4,760
1,196
54,274
223,280
TOYA Romania S.A.
20,106
-
-
54,269
-
Yato Tools (Shanghai) Co. Ltd.
-
-
-
5
24,604
Yato Tools (Jiaxing) Co. Ltd.
22
4,760
1,196
-
198,676
Entities related through key
management personnel
2
-
-
86
-
Total
20,130
4,760
1,196
54,360
223,280
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
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 Change in the composition of the Audit Committee
On 2 January 2023, the Supervisory Board made the following changes to the composition of the Audit Committee:
1. Supervisory Board dismissed from the Audit Committee of TOYA S.A. the following members:
• Mr. Piotr Mondalski
• Mr. Jan Szmidt
• Mr. Grzegorz Maciąg
2. Supervisory Board appointed to the Audit Committee of TOYA S.A. the following member:
• Mr. Wojciech Papierak
• Mr. Michał Kobus
At the same time, the Supervisory Board entrusted the function of the Chairman of the Audit Committee to Mr.
Wojciech Papierak.
TOYA S.A.
Financial statements for the financial year ended 31 December 2022
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
57
After the above-mentioned changes, the Audit Committee of TOYA S.A. consists of the following persons:
1. Mr. Wojciech Papierak - Chairman of the Audit Committee;
2. Mr. Michał Kobus – Member of the Audit Committee;
3. Mr. Dariusz Górka – Member of the Audit Committee.
Management Board of Toya S.A
Date
Name and surname
Position
Signature
23.03.2023
Grzegorz Pinkosz
President of the Management
Board
23.03.2023
Maciej Lubnauer
Vice-President of the
Management Board
23.03.2023
Robert Borys
Vice-President of the
Management Board
Person responsible for bookkeeping:
Date
Name and surname
Position
Signature
23.03.2023
Iwona Banik
Chief Accountant