The Management Board of Inter Cars S.A. hereby presents the Supervisory Board’s resolution concerning assessment of the Company’s standing in 2012.
“This Resolution is a brief assessment of Inter Cars S.A.’s standing, prepared by the Supervisory Board in accordance with the corporate governance rules adopted by the Company. The assessment was prepared on the basis of information contained in the Directors’ Report and the financial statements for 2012, as well as information obtained by the Supervisory Board while performing its duties, as defined in the Company’s Articles of Association.
The Supervisory Board assesses the Management Board’s performance in 2012 positively. Although 2012 was not an easy time for the auto servicing and parts distribution market, and with the Company’s growth slightly decelerating, a 9% rise in sales proved that the adopted distribution strategy is correct. The Management Board’s decision to address our services directly to auto repair shops has made Inter Cars the indisputable leader among spare parts distributors in Poland. Additionally, the decision to expand into other European markets has enabled the Company to deliver solid growth, despite a general softening of the market. Last year’s many successes include stronger top-line performance by the Company’s foreign operations, rapid growth of its distribution network in Poland and abroad, an expanded sales network and consistent broadening of the product portfolio, as well as a comprehensive range of products that are essential in any modern vehicle workshop. The Company’s product range includes premium brand items from suppliers who deliver their components directly to manufacturers’ assembly lines, as well as less expensive, budget brands. Development of its logistics has been and continues to be high on the Company’s list of priorities. Consistent growth, achieved despite stiff competition, has helped the Company develop a reputation for being able to deliver spare parts to any part of the country faster than its competitors. The growth of foreign operations has naturally led to expansion into the promising Central and Eastern European markets. To leverage the potential accumulated over the years, a decision was made to establish ILS, an independent entity able to offer its business partners prime quality logistics and warehousing services. In today’s reality, the benefits of outsourcing services of this kind are obvious. What makes ILS stand out from its rivals is its clear insight into the needs of the auto parts industry.
The Management Board’s strategy for the years to come is focused on growing the sales of passenger vehicle parts, the Company’s non-core segment. There is substantial room for growth in this segment, both in Poland and beyond, largely due to the fact that the majority of passenger vehicle spares are delivered to the Polish market by foreign companies. In 2012, the Company began investing in innovation, one example of which is its e-commerce distribution channel.
The Supervisory Board also has a positive view of Inter Cars S.A.’s economic standing, as the Company has maintained both its liquidity and the ability to meet its liabilities. The Directors’ Reports on the Operations of Inter Cars S.A. and the Inter Cars Group in 2012 contain all the necessary information on Company and Group operations for the financial year, and have been assessed positively by the Supervisory Board. As required by law, the Reports were audited by an independent auditor (KPMG Audyt Sp. z o.o. sp. k.), receiving unqualified audit opinions. Having read the auditor’s opinion and report on the separate and consolidated financial statements, the Supervisory Board did not raise any issues and resolved to present for the General Meeting’s approval Inter Cars S.A.’s financial statements for 2012 and the Directors’ Report on Inter Cars S.A.’s operations in 2012, which comprise: separate financial statements for 2012 and the auditor’s opinion thereon; the Company’s balance sheet as at December 31st 2012 showing a balance-sheet total of PLN 1,484,993 thousand (one billion, four hundred and eighty-four million, nine hundred and ninety-three thousand złoty); an income statement for the period from January 1st to December 31st 2012 showing net profit of PLN 72,501 thousand (seventy-two million, five hundred and one thousand złoty); a statement of changes in equity for the financial year from January 1st to December 31st 2012 showing an increase in equity by PLN 68,251 thousand (sixty-eight million, two hundred and fifty-one thousand złoty); a statement of cash flows for the financial year from January 1st to December 31st 2012 showing a decrease in net cash by PLN 5,357 thousand (five million, three hundred and fifty-seven thousand złoty), and supplementary information comprising an introduction to and notes on the financial statements. The Company’s financial statements and interim reports are prepared in accordance with the law and with the accounting policies applied by the Company, and can only be drawn up by people authorised to access the Company’s inside information, who are obliged to ensure the full confidentiality of the information used as the basis for the financial statements, from the time of obtaining access to such information until publication of the statements. All financial data contained in the financial statements and interim reports are sourced from the financial and accounting system, where all business events are recorded in accordance with the Company’s accounting policies (approved by the Management Board), based on the International Financial Reporting Standards. The Company monitors, on an ongoing basis, any changes in the legal and regulatory reporting requirements for listed companies, and prepares in advance for their incorporation in its internal regulations.
The Financial Division and Division Heads prepare periodic management information reports, including analyses of key financial data and the operating ratios of the business segments, and submit them to the Management Board.
In the Supervisory Board’s opinion, the Management Board successfully implements the Group’s strategy. The previous year saw rapid expansion of the sales network, which resulted in an increase in sales revenue. The sound performance of the Company is attributable to growing demand on the Polish market and continuous development of the foreign subsidiaries. Improved recognition of the Inter Cars brand helped attract new customers and contributed to the development of operating activities. The product portfolio was significantly extended and new sales enhancement solutions implemented.
The Supervisory Board believes that the Management Board used all reasonable effort to ensure the good financial performance of the Group. Therefore, the Supervisory Board positively assesses the Management Board’s efforts to further the Company’s key strategic objectives and recommends the General Meeting to grant discharge to the Management Board members in respect of their duties in the financial year 2012.
Legal basis: Code of Best Practice for WSE-Listed Companies
