consolidated annual report 2017 - aimtec annual...3 content the aimtec group 5 figures for 2017 9...

Consolidated Annual Report 2017The Aimtec Group

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ContentThe Aimtec Group 5

Figures for 2017 9

Independent Auditor’s Report and Consolidated Financial Statement 14

Report on Relations AIMTEC a.s. 32

Independent Auditor’s Report and Consolidated Financial Statements of AIMTEC a.s. 36

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The Aimtec GroupThe Aimtec Group is made up of successful, fast-growing Czech companies with a global reach: a parent company – AIMTEC a.s. – and two subsidiaries: AIMTEC Consulting s.r.o. and AIMTEC Outsourcing s.r.o. More detailed identifying information for all of these companies is given in point 1 of the Consolidated Notes to the Financial Statements. Where not stated otherwise, the information in this Annual Report concerns the entire group, and all numerical data is given in a consolidated form.

Contact InformationPhone: +420 377 225 215E-mail: [email protected]: www.aimtecglobal.com

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Who We AreWe’re Aimtec. We help industry go digital. We bring our customers top-rate manufacturing and logistics consulting expertise and a unique approach to the implementation of our own software solutions. We’ve been integrating people, systems and technologies for over 20 years.

We’re here to help manufacturing and logistics companies keep up with the tempo of future changes. We’re bringing them a digital advantage. The advantage of a digital factory brings each Aimtec customer greater competitiveness and a perfect overview of the processes inside their enterprise, and it integrates their entire supplier-customer chain. A digital factory is a modern enterprise that can quickly react to changes and can harness the benefits of Industry 4.0.

We’re global. As we work with our customers around the world, we deploy methods, solutions and technological innovations and monitor their real-world business impacts. We choose the best ones and immediately apply them in our products and services. Thanks to this, we’re able to give mid-sized companies access to the same innovative and successful solutions that the largest manufacturers are implementing – but we do it at an incomparably lower cost. Our global success is built on the ability to listen, learn and find creative solutions.

We’re creators. We’re constantly building upon our existing products and services. We have our own team thinking up new features for our products so that our software will remain a modern tool and assistant for implementing Industry 4.0. We’re also working to adapt our systems and develop new bespoke features for our customers whenever the situation demands it. Furthermore, we’re testing completely new technologies within our R&D platform.

The company’s headquarters, along with the entire team, is located in Pilsen, from where we provide full support to customers with branches around the world. We’re confident that concentrating all the people involved in our systems’ development and sales into one place strengthens cooperation, communication and the exchanging of know-how and experience. Whenever needed, we gladly travel out to our customers worldwide. In today’s digitalised world, distances are fading away, and so we are capable of handling non-standard situations on every continent. After all, no branch is ever close enough when you need a response in minutes.

Our companies are not beholden to any financial group. And indeed the co-owners, Jaroslav Follprecht and Roman Žák, take a direct and active part in their management. They’ve been manning the helm since the individual companies were born. Besides managing the companies, they also play an important part in communicating their visions and strategies to employees.

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Products and ServicesOur product portfolio includes IT solutions for manufacturing and logistics companies, and it covers every process inside of an enterprise, as well as integration with customers and suppliers. The DCIx system that we’ve developed automates and manages logistics processes in warehouses and manufacturing halls, collects data on manufacturing status and progress and enables our customers to integrate automated warehousing technologies such as conveyors and trains. Similarly, the solutions in our Sappy group manage warehouses and manufacturing and offer a quality-control environment within SAP ERP.

Advanced Planning and Scheduling is another important area of our work. For this area, we’ve teamed up with the Japanese company Asprova, which has developed a system of the same name for manufacturing companies and for detailed creation of plans that take into account all capacities, constraints and manufacturing processes. Even though we are not the developers of this software, we are able to add new features so as to ensure that each of our customers receives a solution that’s tailor-made to their needs.

Besides automating and managing processes inside of companies, we also work to integrate the supplier-customer chain. Our integration division creates solutions for B2B communication and automated electronic data interchange. Here we additionally offer our customers the option of using cloud services.

The Aimtec Support division is available to our customers as well; it offers 24/7 support 365 days a year and not only helps whenever something is unclear in a solution we’ve installed, but also actively monitors the operations of our applications, so that we can catch any errors e.g. in transmitted data sooner than the customer does.

We likewise offer the option of purchasing hardware (readers, terminals etc.) alongside all of our products, and we configure it so that it is fully integrated with the needed systems.

In addition to the deployment of our own solutions, we offer product-independent consulting – we analyse internal processes and, based on this analysis, we present a set of recommended projects with priorities and a logistics audit.

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Our Customers in 2017Manufacturing Companies and Automotive Industry

AAS Automotive, Adler Pelzer Holding, AISIN, AMPHENOL-TUCHEL ELECTRONICS, Aperam Stainless Services & Solutions Tubes CZ, ASMO, ASSA ABLOY, BOS Automotive, BOSAL ČR, BOSAL Automotive Carrier and Protection Systems, compacer, Continental Automotive Czech Republic, DANA Italia, Delphi, DENSO, Devro, Eissmann Automotive, Ferona, Futaba Czech, Hanwha Advanced Materials Europe, HP-Pelzer, IAC Group, JTEKT Automotive, KIEFEL Automotive, KOITO, Lear Corporation, LISI AUTOMOTIVE FORM, Ljunghall, LogTech, Magna Exteriors, Metaldyne, PAJR, Panasonic Automotive Systems, RINGFEDER POWER TRANSMISSION, TRCZ, SEMIKRON, ŠKODA TRANSPORTATION, Varroc Lighting Systems, Wacker-Chemie, YAPP, and YURA Corporation Slovakia

Wholesaling, Distribution and Consumer Goods

OKAY, OLYMPTOY

Logistics EWALS CARGO CARE

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Figures for 2017

30.9 million CZK

Consolidated revenue in millions of CZK

Consolidated profit before taxes

Number of employees

2014

2015

185.97

222.31

158 165138

247.96

293.76

247,96

2015

2016

2016 2017

2017

Employee count growth

4.4%The way the employees are reported has changed relative to previous years. External employees and employees on maternal and parental leave are newly excluded from the overall employee count.

Growth of consolidated revenue in 2017 18.5%

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Products and services

Employee structure

Delivery 48% Development 30% Management and support divisions 13% Sales and marketing 10%

Consulting 62% Software 21% Hardware 15% Cloud software 3%

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Contribution of the company’s divisions to consolidated revenue

Consolidated revenue by sector

Where Aimtec is active

DCI 40% INT (EDI) 27% SAP 19% ASP 7% SUP 4% Other 4%

Automotive 32% information technologies 19% Machine engineering 12% Distribution 11% Plastics manufacturing 9% Logistics 4% Other 13%

Czech Republic 56% Germany 25% United Kingdom 6% Slovakia 4% USA 1% Other (France, Hungary, Finland, Italy,

China and Mexico) 8%

This graph assigns projects to territories by the head-quarters of the entity to which a delivery is invoiced.

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Summary of 2017 and Our Vision for 2018

2017 was very important for Aimtec from the standpoint of the group’s further development. We made two fundamental changes that will reinforce our market position and help us to communicate to our customers, as well as to our employees and third parties, positive news on the development of the group and its market position.

The fi rst change was a newly defi ned strategic focus for the group, followed by a transformation of the corporate identity. This new vision affected not only the materials presented to clients (case studies, fl yers and presentations), but also the logo, which underwent only small changes so as to maintain continuity, but still was made more striking and memorable.

The new strategic focus refl ects our striving to provide quality services around the world. Because of this, we changed our web address, which is newly www.aimtecglobal.com. The Digital Factory, Digital Delivery and Expert Know-how remain as our pillars. They refl ect our main mission towards our clients: helping manufacturing companies with their digital transformation, and eliminating all problem areas in manufacturing and internal logistics processes, thereby making these companies function in a new and more effi cient way.

The second signifi cant event in 2017 was a contract for the rental of new offi ces. Even though its binding signature only arrived in 2018, the main negotiations took place in 2017. The group’s new headquarters will remain in Pilsen, but the custom-built offi ces promise to be spaces that will radiate greater prestige towards both our clients and our employees. We believe that the decision to only spread the offi ces out among two fl oors will facilitate communication among individual teammates and divisions. The expected date for the move is in 2020.

In 2018 we will continue doing what we do best – helping manufacturing and logistics fi rms to automate and go digital. Industry 4.0 is a very comprehensive and broad term, and we are confi dent that we can bring our clients major advantages and savings. However, it is important to approach all this systematically and gradually. We therefore wish to work on our products’ development and the search for new solutions for our customers in a way that ensures we will help them to be modern, competitive and successful companies. After all, it is only thanks to our clients’ successes that we ourselves can be successful.

In Pilsen on 9 May 2018

Jaroslav Follprecht, Vice Chairman AIMTEC a.s.

In Pilsen on 9 May 2018

Jaroslav Follprecht, Vice Chairman AIMTEC a.s.

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Independent Auditor’s Report and Consolidated Financial Statement31 December 2017

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Independent Auditor’s Report

I N D E P E N D E N T A U D I T O R ’ S R E P O R T To the shareholders of the company AIMTEC a.s. Opinion

We have audited the accompanying consolidated financial statements of AIMTEC, a.s. and its subsidiaries (hereinafter also the “Group”) prepared in accordance with accounting principles generally accepted in the Czech Republic, which comprise the consolidated balance sheet as at 31 December 2017, and the consolidated income statement for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies and other explanatory information. For details of the Group, see Note 1 to the consolidated financial statements.

In our opinion, the consolidated financial statements give a true and fair view of the financial position of the Group as at 31 December 2017, and of its financial performance for the year then ended in accordance with accounting principles generally accepted in the Czech Republic.

Basis for Opinion

We conducted our audit in accordance with the Act on Auditors and Auditing Standards of the Chamber of Auditors of the Czech Republic, which are International Standards on Auditing (ISAs), as amended by the related application clauses. Our responsibilities under this law and regulation are further described in the Auditor’s Responsibilities for the Audit of the consolidated Financial Statements section of our report. We are independent of the Group in accordance with the Act on Auditors and the Code of Ethics adopted by the Chamber of Auditors of the Czech Republic and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other Information in the Consolidated Annual Report

In compliance with Section 2(b) of the Act on Auditors, the other information comprises the information included in the Annual Report other than the financial statements and auditor’s report thereon. The Board of Directors is responsible for the other information.

Our opinion on the consolidated financial statements does not cover the other information. In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the above mentioned laws and regulations will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with the above law or regulation, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors of the AIMTEC a.s. in the Notes to the Consolidated Financial Statements.

Conclude on the appropriateness of the Board of Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Obtain sufficient appropriate audit evidence about the financial information of the entities included in the Group and of its business activities in order to express an opinion on the consolidated financial statements. We are responsible for overseeing and supervising the Group's audit. The auditor's opinion on the consolidated financial statements is our sole responsibility.

We communicate with the Board of Directors and the Supervisory Board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Pilsen, 9th May 2018

VALENTA - NOCAR, s.r.o. U Radbuzy 4, 301 00 Plzeň Audit firm licence No. 360

Ing. Josef Nocar Auditor licence No. 1942

with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. In addition, we assess whether the other information has been prepared, in all material respects, in accordance with applicable law or regulation, in particular, whether the other information complies with law or regulation in terms of formal requirements and procedure for preparing the other information in the context of materiality, i.e. whether any non-compliance with these requirements could influence judgments made on the basis of the other information.

Based on the procedures performed, to the extent we are able to assess it, we report that:

The other information describing the facts that are also presented in the consolidated financial statements is, in all material respects, consistent with the consolidated financial statements; and

The other information is prepared in compliance with applicable law or regulation.

In addition, our responsibility is to report, based on the knowledge and understanding of the Group obtained in the audit, on whether the other information contains any material misstatement of fact. Based on the procedures we have performed on the other information obtained, we have not identified any material misstatement of fact.

Responsibilities of the Company’s Board of Directors and Supervisory Board for the Consolidated Financial Statements

The Board of Directors of AIMTEC a.s. is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the Czech Republic and for such internal control as the Board of Directors determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, the Board of Directors of the company AIMTEC a.s. is responsible for assessing the Group´s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

The Supervisory Board is responsible for overseeing the Group’s financial reporting process.

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Consolidated Balance Sheet

Assets 2017 2016

Thousands CZK Netto Netto

Total Assets 168,152 136,017

B. Fixed assets 35,784 35,607

B. I. Intangible fixed assets 7,992 5,437

B. I.2. Valuable rights 7,901 5,175

B.I.2.1. Software 7,875 5,137

B.I.2.2. Other valuable rights 26 38

B.I.4. Other intangible fixed assets 90 159

B.I.5. Prepayments for intangible fixed assets and intangible fixed assets under construction 0 103

B.I.5.2. Intangible fixed assets under construction 0 103

B.II. Tangible fixed assets 18,521 20,362

B.II.2. Tangible movable assets and sets of tangible movable assets 18,521 20,062

B.II.5. Prepayments for tangible fixed assets and tangible fixed assets under construction 0 300

B.II.5.1. Prepayments for tangible fixed assets 0 300

B.IV. Consolidation difference 9,271 9,808

Positive consolidation difference 9,271 9,808

C. Current assets 119,459 90,627

C.I. Inventory 1,027 393

C.I.3. Products and goods 1,027 393

C.I.3.2. Goods 1,027 393

C.II. Receivables 65,998 51,819

C.II.1. Long-term receivables 214 214

C.II.1.5. Receivables – other 214 214

C.II.1.5.2. Long-term prepayments made 214 214

C.II.2. Short-term receivables 65,785 51,605

C.II.2.1. Trade relationship receivables 61,431 49,364

C.II.2.4. Receivables – other 4,354 2,241

C.II.2.4.1. Receivables from partners 119 0

C.II.2.4.3. State - tax receivables 1,550 1,096

C.II.2.4.4. Short-term provided pre-payments 1,062 897

C.II.2.4.5. Conjectural active accounts 880 176

C.II.2.4.6. Other receivables 742 72

C.IV. Short-term financial assets 52,434 38,415

C.IV.1. Money 0 411

C.IV.2. Bank accounts 52,434 38,004

D. Accruals 12,908 9,783

D.1. Accrued expenses 5,708 4,264

D.3. Accrued incomes 7,200 5,518

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Liabilities 2017 2016


TOTAL LIABILITIES 168,152 136,017

A. Shareholder's capital 89,214 64,855

A. I. Fixed capital 2,000 2,000

A. I. 1. Fixed capital 2,000 2,000

A.II. Share premium and capital funds 0 -26

A.II.2. Capital funds 0 -26

A.II.2.2. Gains or losses from the revaluation of assets and liabilities (+/-) 0 -26

A. III. Funds from profit 0 200

A. III. 1. Other reserve funds 0 200

A. IV. Consolidated retained earnings (+/-) 62,881 44,722

A. IV. 1. Accumulated profits brought forward 62,821 45,355

A. IV. 2. Other consolidated retained earnings (+/-) 0 -633

A. V. Consolidated profit or loss for the current period (+/-) 24,333 17,960

B. + C. Liabilities 59,955 53,588

C. Payables 59,955 53,588

C.I. Long-term payables 5,176 6,403

C.I.8. Deferred tax liability 1,523 1,547

C.I.9. Payables - other 3,653 4,856

C.I.9.3 Sundry payables 3,653 4,856

C.II. Short-term liabilities 54,779 47,185

C.II.4. Trade relations liabilities 17,076 11,217

C.II.8. Liabilities to partners 37,703 35,968

C.II.8.1. Liabilities to employees 4 4

C.II.8.3. Liabilities from the social security and health insurance 9,806 9,922

C.II.8.4. State - tax payables and subsidies 5,987 5,915

C.II.8.5. Short-term advances received 7,752 8,249

C.II.8.6. Conjectural passive accounts 8,310 5,919

C.II.8.7. Other liabilities 5,844 5,960

D. Accruals and deferrals 18,982 17,574

D.1. Next periods expenses 802 250

D.2. Next periods incomes 18,180 17,324

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Consolidated Profit and Loss Statement

2017 2016

Thousands CZK

I. Revenue from sale of goods 236,635 221,288

II. Sales of goods 52,381 24,629

A. Purchased consumables and services 102,465 78,256

A.1. Costs of goods sold 40,046 18,572

A.2. Consumed material and energy 8,277 8,405

A.3. Services 54,142 51,278

C. Own work capitalised (+/-) -6,123 -3,594

D. Staff costs 144,414 129,610

D.1. Payroll costs 104,532 93,604

D.2. Social security and health insurance costs and other charges 39,882 36,006

D.2.1. Social security and health insurance costs 35,554 31,826

D.2.2. Other costs 4,328 4,180

E. Adjustments to values in operating activities 13,134 13,825

E.1. Adjustments to values of intangible and tangible fixed assets 12,495 12,959

E.1.1. Adjustments to values of intangible and tangible fixed assets - permanent 12,495 12,959

Accounting of positive consolidation difference 537 537

E.3. Adjustments to values of receivables 101 329

III. Other operating income 2,026 1,764

III.1. Sales of fixed assets 595 116

III.2. Sales of material 0 60

III.3. Sundry operating income 1,431 1,589

F. Other operating expenses 1,653 1,935

F.1. Net book value of sold fixed assets 255 0

F.3. Taxes and charges 745 1,160

F.5. Sundry operating expenses 653 775

* Consolidated operating profit or loss (+/-) 35,499 27,650

G. Expenses on shares sold 1,086 0

VI. Interest income and similar income 2 0

VI.2. Other interest income and similar income 2 0

I. Adjustments to values and reserves relating to financial activities -1,059 1,059

J. Interest expenses and similar expenses 337 463

J.2. Other interest expenses and similar expenses 337 463

VII. Other financial income 2,715 277

K. Other financial expenses 6,885 2,867

* Consolidated financial profit or loss (+/-) - 4,532 -4,111

** Consolidated Profit or loss before tax (+/-) 30,967 23,538

L. Income tax 6,634 5,579

L.1. Due income tax 6,658 5,829

L.2. Deferred income tax (+/-) -24 -250

** Consolidated profit or loss net of tax (+/-) 24,333 17,960

*** Consolidated profit or loss for the current period (+/-) 24,333 17,960

* Net consolidated turnover for the current period 293,759 247,959

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Consolidating Accounting UnitCompany name: AIMTEC a.s.Registered office: Hálkova 1203/32, Plzeň, 301 22Legal form: joint-stock companyID: 25201816This company is registered in section B, file no. 558 of the Commercial Register maintained by the Regional Court in Pilsen (date of registration: 23 July 1996).The company’s activities are mainly in the official category “other activities in the field of information technologies”.

Consolidated Accounting UnitsCompany name: AIMTEC Consulting s.r.o.Registered office: Hálkova 1203/32, Plzeň, 301 22Legal form: limited companyID: 26320975This company is registered in section C, file no. 13476 of the Commercial Register maintained by the Regional Court in Pilsen (date of registration: 16 January 2001).The company’s activities are mainly in the official category “other activities in the field of information technologies”.The consolidating accounting unit holds a 100% share in the equity of this consolidated accounting unit.

Company name: AIMTEC Outsourcing s.r.o.Registered office: Hálkova 1203/32, Plzeň, 30122Legal form: limited companyID: 26127407This company is registered in section C, file no. 14356 of the Commercial Register maintained by the Regional Court in Pilsen (date of registration: 9 November 1999).The company’s activities are mainly in the official category “consulting in the field of information technologies”.The consolidating accounting unit holds a 100% share in the equity of this consolidated accounting unit.

Since 1 January 2011, all three of the companies that are members of the group have been registered as VAT payers at the City of Pilsen Financial Office. The group’s acting member is AIMTEC a.s.

2017 2016

Equity Profit or Loss Equity Profit or Loss

AIMTEC Consulting s. r. o. 1,848 238 1,611 351

2017 2016

Equity Profit or Loss Equity Profit or Loss

AIMTEC Outsourcing s. r. o. 15,898 1,835 14,060 1,680

1 Description of the Group

Notes on the Financial Statements for 2017

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2017

Subsidiary Acquisition Date Purchase Price Equity Consolidation Difference

Accumulated amortisation

ResidualValue

AIMTEC Consulting s. r. o. 8. 4. 2015 20,000 10,846 9,154 1,221 7,933

AIMTEC Outsourcing s. r. o. 14. 11. 2011 4,000 2,410 1,590 252 1,338

Total 24,000 10,744 1,473 9,271

2016

Subsidiary Acquisition Date Purchase Price Equity Consolidation Difference

Accumulated amortisation

ResidualValue

AIMTEC Consulting s. r. o. 8. 4. 2015 20,000 10,846 9,154 763 8,391

AIMTEC Outsourcing s. r. o. 14. 11. 2011 4,000 2,410 1,590 172 1,418

Total 24,000 10,744 935 9,808

2 Foundational Assumptions for the Drafting of the Consolidated Financial Statement

The consolidated financial statement was prepared in accord with the Accounting Act, with the government decree on whose basis certain provisions of the Accounting Act are implemented, and with the Czech Accounting Standards in their wording applicable for 2017 and 2016.Under Section 1(c)(2) of the Accounting Act, the Aimtec group of companies is, as of 31 December 2017, a mid-sized group of accounting units. The consolidated financial statement compiled on 31 December 2016 will be in accord with the relevant provisions of the Accounting Act, as verified by an auditor. In accord with the provisions of Section 22 of the Accounting Act, the consolidating company AIMTEC a.s. is not preparing an annual report; the corresponding information will be included in the consolidated annual report.The consolidated financial statement as of 31 December 2017 was prepared via direct consolidation; the full-consolidation method was used.

3 Positive Consolidation Difference

4 Accounting Policies, Procedures, Valuation and DepreciationFor the preparation of financial statements for 2017 and 2016, the Company used the following accounting policies, procedures, valuations and depreciations:

Long-term Intangible AssetsLong-term intangible assets are recorded at purchase prices. The company does not book low value intangible assets (up to and including 60,000 CZK) on account of long-term assets accounts, but directly to expenses instead. Long-term intangible assets developed internally are valuated at factory cost.

Long-term Tangible AssetsLong-term tangible assets are valuated at purchase prices. Interest expenses and other financial expenses connected with their purchase are not included in their valuation. The company does not book low value intangible assets (up to and including 40,000 CZK) on account of long-term assets accounts, but directly to expenses. The costs of technical improvements of long-term assets over 40,000 CZK increase its purchase price. Technical improvements to the leased assets are accounted for separately in the account on which the improved leased assets would be accounted.

The Method of Preparation for the Depreciation PlanDepreciation is calculated based on the purchase price and is charged monthly on the last day of the month. The company decides on specific form of fixed assets depreciation plan included after 31 December 2001, on their inclusion, while accounting depreciation does not follow the depreciation tax. Assets classified to this date are further amortized according to the original amortization schedule, thus accounting depreciation are consistent with accelerated depreciation under Act No. 586/1992 Coll., The Income Tax Act, as amended at 31 December 2002, if the tax depreciation law for the given type of asset governed it.

Long-term Financial AssetsEquity in unconsolidated controlled and managed companies and in substantially influenced companies is valuated at its purchase price, taking into account any reduction in value.

The consolidation difference will be written off in accord with the provision of the Czech accounting standard over the course of 20 years.

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Financial ResourcesCash desks (crown and foreign-currency) were eliminated as of 31 August 2017; the remaining cash was transferred to the company’s back accounts. As of 1 September 2017, the company’s financial resources comprise stamps and cash in bank accounts.

InventoriesPurchased inventories are valuated at purchase prices. Stocks are in light of their nature and manner of their movement accounted for using method B.

ReceivablesReceivables are recorded at their nominal value. As of the date of the financial statements, the value of bad receivables is decreased using rectifying items accounted to expenses that are in the balance sheet under the “correction column”. When determining the method of calculating rectifying items, the company follows the Act No. 593/1992 Coll. of reserves for determining the income tax base, as amended.Estimated accounts receivable are valuated on the basis of expert estimates and calculations.

Shareholder’s CapitalShareholder‘s capital of the Company is stated at the amount recorded in the Commercial Register. Other capital funds are established at the company‘s sole discretion under the statutes.

External Financial SourcesBoth long-term and short-term liabilities are expressed as nominal values.Both long-term and short-term liabilities towards credit institutions are expressed as nominal values. Short-term liabilities towards credit institutions are considered to also include that portion of long-term liabilities towards credit institutions that is payable within one year from the balance-sheet date.Estimated accounts payable are valuated on the basis of expert estimates and calculations.

Foreign Currency TransactionsAssets and liabilities denominated in foreign currencies are translated into Czech crowns using the current daily exchange rate announced by the Czech National Bank valid at the time of their inception and at the time of the financial statements, they are translated at the rate published by the Czech National Bank valid on the last day of the accounting period.In the case of purchase and sale of foreign currency for Czech currency, the foreign currency is translated using the rate at which these values were actually purchased and/or sold.Both realised and unrealised foreign exchange gains and losses are charged to the income, or respectively to the expenses of the current year.

Use of EstimatesThe preparing of a financial statement demands the use of estimates and assumptions, which have an influence on the assets and liabilities as of the financial-statement date that are shown, and on the amounts of profits and costs shown for the tracked period. These estimates and assumptions were established by the responsible persons on the basis of all relevant information available to them. Nevertheless, as is implied by the nature of estimation, the true future values can differ from these values.

Revenues and Expenses AccountingRevenues and expenses are accounted on an accrual basis, i.e. in the period to which they relate in terms of material and time, based on the transfer of goods or services, regardless of the time of payment. Exceptions are laid down in the Accrued Expenses and Revenues directive.Revenues are accounted including discounts and free from value added tax.Conjectural items are accounted in profit or loss as known at the balance-sheet date. Income from customer projects in progress is accounted for as of the balance-sheet date based on the expert estimations of the corresponding divisions’ directors.

Income TaxCurrent income tax is calculated independently for the individual companies of the consolidation unit based on the applicable tax rate and from the book income increased and/or decreased by the permanently or temporarily non-deductible expenses and non-taxable income. The income tax expense in the consolidated profit and loss statement is the sum of the income tax expenses for the companies in the consolidation unit.Deferred tax is calculated separately for the individual companies in the group and reflects the tax effects of all temporary differences between the residual asset and liability values from the accounting and tax standpoint and the defining of the tax base with a view to the time of performance. The consolidated deferred payable and receivable is the sum of the deferred tax payable and receivables for the companies in the consolidation unit.

22

5 Long-term AssetsLong-term Intangible Assets

Purchase Price State Acquisition Disposal State

Thousands CZK 1 Jan 2017 31 Dec 2017

Software 45,358 7,500 515 52,343*

Royalties 60 0 0 608

Other intangible fixed assets 168 97 0 265**

Fixed assets under construction 103 7,417 7,520 0

Total 45,689 15,014 8,035 52,668

* of which the company’s own software comprises 47,527 thousand CZK** promotional video for the software solutions the company offers

Purchase price State Acquisition Disposal State


Software 40,082 5,276 0 45,358*

Royalties 60 0 0 60

Other intangible fixed assts 0 168 0 168**

Fixed assets under construction 0 0 0 103***

Total 40,142 5,547 0 45,689

*of which the company’s own software comprises 44,102 thousand CZK** promotional video for the company’s own ClouEDI software***[email protected] website (completion date in 2017)

Accumulated amortisation State Depreciation Incl.

Disposal State

Thousands CZK 1 Jan 2017 Net Book Value at Disposal

31 Dec 2017

Software 40,220 4,763 515 44,468


Other intangible fixed assts 9 165 0 174

Total 40,251 4,940 515 44,676

Net book value 5,437 7,992

Accumulated Amortisation State Depreciation incl.

Disposal State


31 Dec 2016

Software 35,083 5,137 0 40,220


Other intangible fixed assets 0 9 0 9

Total 35,093 5,158 0 40,251


23



Individual tangible assets and groups 45,006 6,268 2,387 48,888

cars 36,015 5,457 2,387 39,085

hardware 8,279 811 0 9,091

furniture 495 0 0 495

other 217 0 0 217

Total 45,006 6,268 2,387 48,888




cars 30,639 6,557 1,182 36,014

hardware 7,461 819 0 8,280


other 217 0 0 217

Prepayments for tangible fixed assets 0 300 0 300

Total 38,812 7,676 1,182 45,306

*prepayment for car delivered in 2017

Long-term Tangible Assets


Disposal State


31 Dec 2017


Total 24,944 7,810 2,387 30,367



Disposal State


31 Dec 2016


Total 17,859 8,268 1,182 24,944


As of 31 December 2017, the total amount of tangible assets not stated in the balance sheet, in acquisition prices, was 4,608 thousand CZK (as of 31 December 2016: 3,785 thousand CZK).For 34 cars financed via credit from ČSOB Leasing a.s. or UniCredit Leasing CZ s.r.o. with a total acquisition value in the amount of 20,768 thousand CZK, a transfer of title as security of obligation has been contractually arranged.

24

Purchase Price State State

Thousands CZK 31 Dec 2017 31 Dec 2016

Software 74 76

Hardware 461 316

Hardware – goods being delivered 492 0

Total 1,027 393

Trade Receivables State State


To maturity 51,824 41,777

Overdue 10,270 7,969

Foreign Exchange differences -190 -16

Overpayments -473 -366

Total 61,431 49,364

Financial Investments

Company as of 31 Dec 2017

Acquisition Cost of Share (Thousands CZK)

Share in Basic Capital (%)

Equity (Thousands CZK)

Profit and Loss (Thousands CZK)

Dividends(Thousands CZK)

aitto GmbH 0 0 x x x

Company as of 31 Dec 2016

Acquisition Cost of Share (Thousands CZK)

Share in Basic Capital (%)

Equity (Thousands CZK)

Profit and Loss (Thousands CZK)

Dividends(Thousands CZK)

aitto GmbH 1,059 49 x x x

6 InventoryThese are products purchased from suppliers at the end of the current year that were supplied to customers at the beginning of the following year.

7 ReceivablesTrade Receivables

As of 31 December 2017, the group does not register any liabilities with a maturity of longer than 5 years, nor did it have any as of 31 December 2016.

All companies within the group closely follow any eventual overdue liabilities and evaluate all information obtained continuously. The consolidated accounting units do not register any provisions as of 31 December 2017; likewise as of 31 December 2016. The consolidating company registers provisions totalling 473 thousand CZK (329 thousand CZK in 2016), of which 469 thousand CZK is a provision in the amount of 50% of the total amount of liabilities, and 4 thousand CZK is a provision in the amount of 100% of the total amount of a liability.

25

The State – Tax ReceivablesAs of 31 December 2017, the consolidated company AIMTEC Consulting s.r.o. registers a receivable towards the state in the amount of 993 thousand CZK due to an overpayment of income tax advance payments for legal entities for 2016, and another receivable in the amount of 524 thousand CZK for 2017.

8 Accruals and Deferrals – AssetsDeferred Expenses

Deferred Expenses State State


Sub-deliveries for customer projects that will be invoiced to customers in the next accounting periods.

4,570 1,516

Liability and accident insurance for the upcoming year. 0 1,198

Licences and maintenance for internal software 501 377

Marketing costs (in 2017: advertisements for 2018; in 2016: 2017 calendar and advertisements for 2017)

21 377

Office furniture (acquired in 2016 in a total amount of 302 thousand CZK, deferred during a period of 4 years)

217 293

Other (rental of garages for upcoming acct. periods, contribution to private pension and life insurance for employees for January of the following year, withholding tax that cannot be taken into account, etc.)

399 503

Total 5,708 4,264

Deferred Tax Liability State State


Difference in accounting and tax carrying values on long-term liabilities -8,632 -8,140

Bonuses for current year paid in January of the following year (including taxes etc.) 615 0

Basis for deferred tax -8,017 -8,140

Deferred tax (19%) -1,523 -1,547

Accrued Income State State


Services offered for customer projects as of December 31st of the current year that will be invoiced in the following accounting periods in accord with contracts.

6,999 5,325

Maintenance and reserved services invoiced to customers in the current year for future accounting periods

0 193

Bonus (rebate) for overachieving supplier target 201 0

Total 7,200 5,518

Accrued Income

9 Long-term LiabilitiesDeferred Tax Liability

26

Other liabilitiesOn the account for other long-term liabilities, AIMTEC a.s. and AIMTEC Outsourcing s.r.o. register the balances of credits offered for the purchase of long-term assets that have a maturity of more than 1 year.The portion of the liabilities payable within one year is reflected in the balance sheet as other short-term liabilities.

Information on the transfer of title as security of obligation for the subject of financing of credit contracts is provided in the Long-term Assets point.

Payables to Employees State State


Salaries for December of the current year paid in January of the following year 9,526 9,672

Travel costs for December of the current year paid in January of the following year 280 250

Total 9,806 9,922

Provider Subject Number Amount of Credit

Mature Liabilities Interest Rate

31 Dec 2017 TotalThousands CZK

Up to 1 yearThousands CZK

Over 1 yearThousands CZK

% p. a.

ČSOB Leasing a.s. cars 19 8,542 2,181 15 3,5

UniCredit Leasing CZ s.r.o. cars 15 10,787 3,448 3,638 3,5

Total 34 19,329 5,629 3,653



31 Dec 2016 TotalThousands CZK

Up to 1 yearThousands CZK

Over 1 yearThousands CZK

% p. a.

ČSOB Leasing a.s. cars 26 14,151 3,960 2,118 3,5


Total 38 19,734 5,754 4,856

Trade Receivables State State

Thousands CZK as of 31 Dec 2017 as of 31 Dec 2016

To maturity 16,929 9,139

Overdue 152 2,071

Provision 14 13

Foreign exchange differences -20 -7

Total 17,076 11,217

10 Short-term LiabilitiesTrade Receivables

Payables to Employees

27

1) The amount was paid on time and in compliance with applicable regulations.

Social Security and Health Insurance Payables

Liability State State Notes


Social security – December of the current year 4,126 4,045 1)

Health insurance – December of the current year 1,861 1,869 1)

Celkem 5,987 5,915

State – Tax Payables and SubsidiesLiability State State


Taxes on corporate incomes 2,526 2,225

Income tax on individuals – pre-payments, depreciation (December of the current year) 2,393 2,437

Depreciation tax of abroad (December of the current year) 5 143

VAT – tax obligation (December of the current year) 2,975 3,422

VAT – unapplied excess withholding over the course of the current year -355 -248

Road tax – additional chargé for the current year 5 9

Payment to the state for non-fulfillment of the quota of employees with health impairments 203 261

Total 7,753 8,249

Estimated Payables State State


Services connected with the renter’s rental of offices for the current year placed in the accounting for the following year

924 809

Sub-deliveries supplied but not invoiced as of the balance-sheet date 352 52

Licensing fees 4,736 4,019

Bonuses for the current year paid in January of the following year (including taxes etc.) 615 0

Rebate from SAP SE (calculation based on the volume of deliveries for the current year) 1,643 967

Other 40 72

Total 8,310 5,919

All liabilities were paid in the following period within the payment deadlines in compliance with applicable regulations. VAT refunds were claimed in regular tax filings in the following year.

Estimated Payables

Sundry PayablesThe Other Liabilities accounting entry primarily contains the portion of credits provided for the purchase of long-term assets that have a maturity of less than one year (for a more detailed description, see the point named Long-term Liabilities – Other Liabilities) and also liabilities arising from the accounting for salaries for the December 2017 period, totalling 215 thousand CZK (required contributions towards private pension and life insurance for employees in the amount of 92 thousand CZK and legally required liability insurance for employees in the amount of 123 thousand CZK; both liabilities were paid by their payment deadline in January of 2018).

28

Off-Balance-Sheet Items State State Method of Accounting

Thousands CZK as of 31 Dec 2017

as of 31 Dec 2016

Minor long-term tangible assets 4,608 3,785 1)

Minor long-term intangible assets 0 548 1)

Assets purchased after the completion of leases that end in the purchase of the leased item 1,411 1,411 2)

Hardware 933 933 2)

Other (furniture) 478 478 2)

Issued advance invoiced unpaid as of the balance-sheet date 2,580 3,245 2)

Received advance invoiced unpaid as of the balance-sheet date 2 39 2)

1) Operations items2) Off-balance-sheet items

Deferred Income State State


Maintenance for the following year invoiced to customers at the end of the current year 11,969 12,390

Reserved services for the following year invoiced to customers at the end of the current year 717 284

Services for customer projects as of 31 December of the current year invoiced in accord with contractual provisions, which will however not be provided until the following account period

5,489 4,651

Agreed interest on loan (due in the following year) 5 0

Total 18,180 17,324

Shareholders Board Members



as of 31 Dec 2017

as of 31 Dec 2016

as of 31 Dec 2016

Receivables 0 0 0 0

Provided loans

Guarantees

Trade receievables

Liabilities 0 0 0 0

Received loans

Credit

Trade liabilities

Other Performance 1,666 4,977 1,666 4,977

Financial

Non-financial 1,666 4,977 1,666 4,977

Cars in use (purchase price) 1,594 4,905 1,594 4,905

Services offered

Pension insurance 24 24 24 24

Private life insurance 48 48 48 48

11 Accruals for LiabilitiesDeferred Income

12 LeasingThe company does not have any leasing contracts running as of 31 December 2016, and likewise did not as of 31 December 2015.

13 Off-Balance-Sheet Items

14 Information on Transactions with Associated Parties

29

Type of activity 2017 2016

Thousands CZK Domestic Foreign Domestic Foreign

Total revenues – services 126,389 110,246 102,452 118,837

Consulting 76,981 80,403 55,591 81,552

Maintenance (own and purchased) 19,974 8,613 18,499 7,848

Fixed payments for support 7,197 8,135 9,928 16,520

Sales of own software 14,133 10,658 15,278 10,343

Other (travel costs for employees, marketing, personal fuel for employees, shipping, handling, commissions etc.)

8,104 2,437 3,156 2,574

Total revenues – sold goods 35,355 17,026 18,961 5,668

Hardware 31,264 6,975 13,666 2,870

Software 4,091 10,051 5,296 2,798

Foreign Revenue 2017 2016

Thosuands CZK

Share inForeign Sales

Thosuands CZK


Europe 119,782 94.11% 115,439 92.72%

Germany 72,970 57.33% 80,938 65.01%

Great Britain 17,170 13.49% 4,547 3.65%

Slovakia 12,811 10.07% 8,018 6.44%

France 3,110 2.44% 4,106 3.30%

Hungary 2,906 2.28% 1,003 0.81%

Other countries (less than 2% share in foreign sales in 2017) 10,815 8.50% 16,827 13.52%

United States of America 4,258 3.35% 3,489 2.80%

China 1,232 0.97% 4,611 3.70%

Morocco 604 0.47% 0 0.00%

Russia 573 0.45% 126 0.10%

Mexico 486 0.38% 193 0.16%

Tunisia 337 0.29% 647 0.52%

TOTAL 127,272 124,505

16 Other Significant Items in the Profit and Loss StatementStructure of Revenues from the Sale of Services and Goods

Structure of Foreign Revenue by Individual Countries

15 Research and Development CostsIn 2017, none of the companies had research and development expenses; the same applies for 2016.

30

Services (Costs)

Other Costs (Employee Welfare)

Services within the Group (Costs)

Other Financial Income

Services (Costs) State State


Repairs and maintenance 3,036 2,981

Employees‘ travel costs 5,905 6,141

Prestige-promotion costs 1,785 2,501

Sub-deliveries for customer projects (maintenance, IT services) 16,788 16,263

Maintenance, internal IT services 3,331 993

Training 2,187 1,841

Legal, notary, knowledge and accounting services, translations 1,928 1,736

Rent (offices, cars, parking spaces, training spaces) 4,495 4,037

Rent (offices, cars, parking spaces, training spaces) 339 499

Office cleaning 339 499

Phone and postage charges 1,918 2,690

Publicity 9,525 8,062

Other 2,905 3,534

Total 54,142 51,278

Other Costs (Employee Welfare) State State

Thousands CKK 31 Dec 2017 31 Dec 2016

Employee celebration for company’s 20th anniversary (in 2016) 0 1,130

Employee celebration for company’s 20th anniversary 331 0

Christmas celebration for employees 328 52

Partial subsidies for employee lunch vouchers 1,869 1,770

Partial subsidies for employees’ pension and life insurance 1,114 1,051

Support for employees recovering from work injuries 350 0

Other 336 177

Total 4,328 4,180

Services within the Group (Costs) State State


Employees’ programming work on company’s own DCIx software 2,897 2,070

Employees’ programming work on company’s own ClouEDI software 3,226 1,524

Celkem 6,123 3,594

Other Financial Costs State State


Currency exchange losses 3,772 498

Gifts 853 276

Insurance 2,039 1,905

Banking costs 221 189

Total 6,885 2,867

The other financial income primarily represents currency-exchange profits (2,714 thousand CZK).

31

17 Assumption of the Company’s Continued FunctioningThe group’s consolidated fi nancial statements as of 31 December 2017 were prepared under the assumption that the company will continue its operations in the future. The included fi nancial statement therefore does not contain any provisions that might result from uncertainty in this regard.

18 Important Events after the Balance-Sheet DateNo important events occurred between the balance sheet date and date of fi nancial statement.

Processed by: Michaela BrožováBalance-sheet date: 31 December 2017Date of drafting of the consolidated fi nancial statement: 9 May 2018

Ing. Jaroslav Follprecht, Vice Chairman AIMTEC a.s.

Date of drafting of the consolidated fi nancial statement: 9 May 2018

32

Report on Relations AIMTEC a.s. 2017

33

Report on Relations AIMTEC a.s.

Report in the sense of Section 82 and following of the Business Coporations Act on Relationships between a controlled entitity and a controlling entity and relationships between a controlled entitiy and other entities controlled by the same controlling entity, for the 2017 account period

1 Structure of Relationships between the Controlling Entity and the Entities Controlled by the Same Controlling Entity

1.1 Controlled Entity AIMTEC a.s., ID: 25201816, based in Pilsen, Hálkova č.p. 1203/32, zip code: 301 22, registered in section B, file no. 558 of the Commercial Register maintained by the Regional Court in Pilsen.

1.2 Controlling EntitiesIng. Jaroslav Follprecht (born 9 January 1960, permanent residence Havlíčkova 9, Plzeň) Ing. Roman Žák (born 13 May 1967, permanent residence V Mokřinách 495, Zruč-Senec)

1.3 Entities Controlled by the Same Controlling EntityAIMTEC Consulting s.r.o., ID: 26320975, based in Pilsen, Hálkova 1203/32, zip code: 301 22, registered in section C, file no. 13476 of the Commercial Register maintained by the Regional Court in Pilsen.

AIMTEC Outsourcing s.r.o., ID: 26127407, based in Pilsen, Hálkova 1203/32, zip code: 301 22, registered in section C, file no. 14356 of the Commercial Register maintained by the Regional Court in Pilsen.

1.4 Description of RelationshipsThe controlling entities, Mr. Jaroslav Follprecht and Mr. Roman Žák, each own 50% of the registered shares in the controlled entity and thus indirectly control both AIMTEC Consulting and AIMTEC Outsourcing.In relation to AIMTEC a.s., Mr. Jaroslav Follprecht and Mr. Roman Žák are entities acting in agreement under Section 78 of the Business Corporations Act.AIMTEC a.s. has a 100% share in the companies listed in point 1.3. Within these companies, it exercises a direct, decisive influence in the sense of Sections 74 and 75 of the Business Corporations Act and forms a group together with these entities.

2 Role of the Controlled EntityWithin the group of the three above-mentioned companies, no clear-cut roles are set for each individual one. All of these companies provide IT solutions for the automotive industry and for manufacturing, logistics and distribution firms. Within the individual companies, different types of offered products dominate slightly in the provision of these services – in the case of AIMTEC a.s. these are its own products DCIx and ClouEDI, along with the supplier-provided product ASPROVA.When making transactions with third parties, all three of these companies work on the basis of shared terms and conditions applicable for the entire group.

3 Method and Means of ControlThe entity is controlled by means of the general assembly and the board of directors. The controlling entities hold thefunctions of chairman and vice-chairman of the board of directors.

4 Overview of Mutual Contracts4.1 AIMTEC a.s. a Ing. Jaroslav Follprecht, Ing. Roman Žák License agreement

- “ClouEDI” trademark License agreement

- “AIMTEC” trademark License agreement

- “aimagazine” trademarkThe above-stated trademarks are the property of Jaroslav Follprecht and Roman Žák, who are providing Aimtec a.s. the rights to their use on the basis of license agreements.4.2 AIMTEC a.s. and AIMTEC Outsourcing s.r.o. Contract on Mutual Provision of Consulting Services

- Two contracts for mutual performance Contract on Mutual Rental of Company Vehicles

- Two contracts on mutual performance

34

Contract on the Provision of Moderation and Organisation Services in the Framework of an Industry Conference- AIMTEC Outsourcing s.r.o. is providing services to AIMTEC a.s. Contract on Cooperation for the Organising of the Trends in Automotive Logistics 2017 (TAL17) Conference and Accompanying Events on 20 September 2017

- The contract between all three of the group’s companies that governs participation in the overall costs of organising the conference

4.3 AIMTEC a.s. and AIMTEC Consulting s.r.o. Contract on Mutual Provision of Consulting Services

- Two contracts on mutual performance Contract on Cooperation for the Organising of the Trends in Automotive Logistics 2017 (TAL17) Conference and Accompanying Events on 20 September 2017


Contract on the Performance of Services Connected with the Organising of an Industry Conference - AIMTEC a.s. provides the organisation team for the Trends in Automotive Logistics conference

4.4 AIMTEC Outsourcing s.r.o. and AIMTEC Consulting s.r.o. Contract on Mutual Provision of Consulting Services

- Two contracts on mutual performance Contract on Cooperation for the Organising of the Trends in Automotive Logistics 2017 (TAL17) Conference and Accompanying Events on 20 September 2017


5 Evaluation of Whether or Not Any Harm Was Caused to a Controlled Entity, and Evaluation of Its Settlement under Sections 71 and 72

The companies maintain standard supplier/customer relationships, in which the usual prices apply. For this reason it can be stated that none of the controlling or controlled entities were placed at an advantage or disadvantage. The fi nances controlled by AIMTEC Outsourcing s.r.o. ended with a loss in 2017. During the analysis of this situation, the decision by the controlling entity to take on a large number of new employees as consultants and programmers, who could not, however, be put to use in customer projects as per the original plan, thus preventing the achievement of planned profi ts, was identifi ed as the cause of this loss. The controlling entity thus provided the controlled entity, AIMTEC Outsourcing s.r.o., with settlement for harm on the basis of an agreement. Its amount was defi ned as an amount evening up the EBIT margin of the controlled entity to the value corresponding to the median of the EBIT margin spread for companies with a similar area of activities. Where non-fi nancial performances were provided by the controlled entities, performance of a fi nancial form was provided by the controlling entity in return in such an amount as to entirely correspond to the price level for the services and goods provided by the controlled entities.

6 Advantages and Disadvantages Arising from the Relationships between the Controlling Entity and the Controlled Entities

The relationships among the entities listed in point 1 of this Annual Report lead to advantages for AIMTEC a.s.; these primarily include a better market position, the possibility of using trademarks, and the use of the know-how of the associated entities.No disadvantages and no risks arise for the controlled entity from the relationships mentioned above.

Pilsen, 26 March 2018

Ing. Jaroslav FollprechtVice Chairman AIMTEC a.s.

36

Independent Auditor’s Report and Consolidated Financial Statements of AIMTEC a.s. 31 December 2017

37

Independent Auditor’s Report

I N D E P E N D E N T A U D I T O R ’ S R E P O R T To the shareholders of the company AIMTEC a.s. Opinion

We have audited the accompanying financial statements of AIMTEC a.s., identification number 252 01 816 (hereinafter also the “Company”) prepared in accordance with accounting principles generally accepted in the Czech Republic, which comprise the balance sheet as at 31 December 2017, the income statement for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information. For details of the Company, see Note 1 to the financial statements.

In our opinion, the financial statements give a true and fair view of the financial position of AIMTEC a.s. as at 31 December 2017, and of its financial performance for the year then ended in accordance with accounting principles generally accepted in the Czech Republic.

Basis for Opinion

We conducted our audit in accordance with the Act on Auditors and Auditing Standards of the Chamber of Auditors of the Czech Republic, which are International Standards on Auditing (ISAs), as amended by the related application clauses. Our responsibilities under this law and regulation are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Act on Auditors and the Code of Ethics adopted by the Chamber of Auditors of the Czech Republic and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other Information in the Annual Report

In compliance with Section 2(b) of the Act on Auditors, the other information comprises the information included in the Annual Report other than the financial statements and auditor’s report thereon. The Board of Directors is responsible for the other information.

As stated in Note 1 to the financial statements, AIMTEC a.s. does not compile the individual annual report because it intends to include the relevant information in the consolidated annual report. For this reason, our comments on other information are not part of this auditor's report.

draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the Board of Directors and the Supervisory Board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Pilsen, 17th April 2018

VALENTA - NOCAR, s.r.o. Ing. Josef Nocar U Radbuzy 429/4, 301 00 Plzeň Auditor licence No. 1942 Audit firm licence No. 360

Responsibilities of the Company’s Board of Directors and Supervisory Board for the Financial Statements

The Board of Directors is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the Czech Republic and for such internal control as the Board of Directors determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Supervisory Board is responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the above mentioned laws and regulations will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with the above law or regulation, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.

Conclude on the appropriateness of the Board of Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to

38

Balance Sheet

Assets 31 Dec 2017 31 Dec 2016

Thousands CZK Brutto Correction Netto Netto

TOTAL ASSETS 212,871 56,224 156,647 124,898

B. Fixed assets 100,311 55,751 44,560 43,115

B. I. Intangible fixed assets 41,833 33,901 7,932 5,324

2. Valuable rights 41,568 33,725 7,843 5,062

2.1. Software 41,508 33,691 7,817 5,024

2.2. Other valuable rights 60 34 26 38

4. Other intangible fixed assets 265 176 89 159

5. Prepayments for intangible fixed assets and intangible fixed assets under construction

0 0 0 103

5.2. Intangible fixed assets under construction 0 0 0 103

B. II. Tangible fixed assets 34,478 21,850 12,628 13,791

2. Tangible movable assets and sets of tangible movable assets 34,478 21,850 12,628 13,491

5. Prepayments for tangible fixed assets and tangible fixed assets under construction

0 0 0 300

5.1. Prepayments for tangible fixed assets 0 0 0 300

B. III. Long-term financial assets 24,000 0 24,000 24,000

1. Shares – controlled or controlling entity 24,000 0 24,000 24,000

C. Current assets 101,093 473 100,620 72,726

C. I. Inventory 1,027 0 1,027 393

3. Products and goods 1,027 0 1,027 393

3.2. Goods 1,027 0 1,027 393

C. II. Receivables 59,887 473 59,414 46,288

1. Long-term receivables 195 0 195 195

1.5. Receivables - other 195 0 195 195

1.5.2. Long-term prepayments made 195 0 195 195

2. Short-term receivables 59,692 473 59,219 46,093

2.1. Trade relationship receivables 56,970 473 56,497 41,968

2.4. Receivables - other 2,722 0 2,722 4,125

2.4.1. Receivablves for partners 119 0 119 0

2.4.4. Short-term provided pre-payments 1,062 0 1,062 897

2.4.5. Conjectural active accounts 854 0 854 176

2.4.6. Other receivables 687 0 687 3,052

C. IV. Short-term financial assets 40,179 0 40,179 26,045

1. Money 0 0 0 240

2. Bank accounts 40,179 0 40,179 25,805

D. Accruals 11,467 0 11,467 9,057

1. Accrued expenses 5,586 0 5,586 4,033

3. Accrued incomes 5,881 0 5,881 5,024

39

Liabilities 2017 2016


TOTAL LIABILITIES 156,647 124,898

A. Shareholder's capital 86,199 63,377

A. I. Fixed capital 2,000 2,000

1. Fixed capital 2,000 2,000

A.II. Share premium and capital funds 0 -26

2. Capital funds 0 -26

2.2. Gains or losses from the revaluation of assets and liabilities (+/-) 0 -26

A. III. Funds from profit 0 200

1. Other reserve funds 0 200

A. IV. Retained earnings (+/-) 61,403 40,737

1. Accumulated profits brought forward 61,403 40,737

A. V. Profit or loss for the current period (+/-) 22,796 20,466

B. + C. Liabilities 52,065 45,199

C. Payables 52,065 45,199

C.I. Long-term payables 3,501 3,929

8. Deferred tax liability 1,144 1,158

9. Payables – other 2,357 2,771

9.3. Sundry payables 2,357 2,771

C.II. Short-term liabilities 48,564 41,270

4. Trade relations liabilities 23,339 22,674

6. Liabilities – controlled or controlling entity 5,725 0

8. Other liabilities 19,500 18,596

8.3. Liabilities from the social security and health insurance 3,188 3,295

8.4. State – tax payables and subsidies 1,864 1,948

8.5. Short-term advances received 5,797 5,983

8.6. Conjectural passive accounts 4,969 3,564

8.7. Other liabilities 3,682 3,806

D. Accruals and deferrals 18,383 16,322

D.1. Next periods expenses 565 68

D.2. Next periods incomes 17,818 16,254

3939

40

2017 2016

Thousands CZK

I. Revenue from sale of goods 173,617 158,971

II. Sales of goods 49,886 23,302

A. Purchased consumables and services 123,073 99,223

1. Costs of goods sold 38,319 17,535

2. Consumed material and energy 4,504 4,220

3. Services 80,250 77,468

C. Own work capitalised (-) 0 -270

D. Staff costs 50,074 47, 890

1. Payroll costs 36,437 34,264

2. Social security and health insurance costs and other charges 13,637 13,626

2.1. Social security and health insurance costs 12,005 11,487

2.2. Other charges 1,632 2,139

E. Adjustments to values in operating activities 10,333 9,357

1. Adjustments to values of intangible and tangible fixed assets 10,232 9,028

1.1. Adjustments to values of intangible and tangible fixed assets - permanent 10,232 9,028

3. Adjustments to values of receivables 101 329

III. Other operating income 8,654 7,236

1. Sales of fixed assets 595 116

2. Sales of material 0 60

3. Sundry operating income 8,059 7,060

F. Other operating expenses 16,915 8,996

1. Net book value of fixed assets sold 254 0

3. Taxes and charges 379 513

5. Sundry operating expenses 16,282 8,483

* Operating profit or loss (+/-) 31,762 24,313

IV. Revenue from long-term tangible assets – shares 0 4,000

1. Revenue from shares – controlled or controlling entity 0 4,000

G. Náklady vynaložené na prodané podíly 1,086 0

VI. Interest income and similar income 2 0

2. Other interest income and similar income 2 0

I. Adjustments to values and reserves relating to financial activities -1,059 1,059

J. Interest expenses and similar expenses 219 328

2. Other interest expenses and similar expenses 219 328

VII. Other financial income 2,110 237

K. Other financial expenses 5,102 1,933

* Financial profit or loss (+/-) -3,236 917

** Profit or loss before tax (+/-) 28,526 25,230

L. Income tax 5,730 4,764

1. Due income tax 5,744 4,769

2. Deferred income tax (+/-) -14 -5

** Profit or loss net of tax (+/-) 22,796 20,466

*** Profit or loss for the current period (+/-) 22,796 20,466

* Net consolidated turnover for the current period 234,269 193,746

Profit and Loss Statement

41

Overview of Changes to Equity

Equity Item Initial Final Increments Decreases

(period from 1 Jan 2017 to 31 Dec 2017) Thousands CZK State State + -

A. Shareholders capital 63,377 86,199 23,022 -200

A.I. Fixed capital 2,000 2,000 0 0

1. Fixed capital 2,000 2,000 0 0

A.II. Share premium and capital funds -26 0 26 0

A.II.2. Capital funds -26 0 0 0

2. Gains or losses from the revaluation of assets and liabilities -26 0 0 0

A.III. Funds from profit 200 0 0 -200

1. Other reserve funds 200 0 0 -200

A.IV. Retained earnings (+/-) 40,737 61,403 20,666 0

1. Accumulated profits brought forward 40,737 61,403 20,666 0

2. Retained losses 0 0 0 0

A.V. Profit or loss for the current period (+/-) 20,466 22,796 2,330 0

Equity Item Initial Final Increments Decreases

(period from 1 Jan 2016 to 31 Dec 2016) Thousands CZK State State + -

A. Shareholder’s capital 42,911 63,377 20,466 26

A.I. Fixed capital 1,000 2,000 1,000 0

1. Fixed capital 1,000 2,000 1,000

A.II. Share premium and capital funds -26 -26 0 26

A.II.2. Capital funds -26 -26 0 26

2. Gains or losses from the revaluation of assets and liabilities -26 -26 26

A.III. Funds from profit 200 200 0 0

1. Other reserve funds 200 200

A.IV. Retained earnings (+/-) 26,811 40,737 13,926 0

1. Accumulated profits brought forward 26,811 40,737 13,926

2. Retained losses 0 0 0

A.V. Profit or loss for the current period 14,926 20,466 5,540 0

On the basis of a decision by the general assembly dated 15 June 2017, the company’s 2016 profits in the amount of 20,466 thousand CZK were transferred to the account for undistributed profits from previous years.On the basis of a decision by the general assembly dated 15 June 2017, the reserve fund in the amount of 200 thousand CZK was transferred to the account for undistributed profits from previous years.The registered capital after the increase comprises 40 bearer-share certificates with a nominal value of 25 thousand CZK and 100 bearer-share certificates with a nominal value of 10 thousand CZK (paid).

On the basis of a decision by the general assembly dated 29 April 2016, profits in the amount of 14,926 thousand CZK were transferred to the account for undistributed profits from previous years. On the basis of a decision by the general assembly dated 14 December 2016, the registered capital was increased by 1,000 thousand CZK. The increase in registered capital was recorded in the Commercial Register on 21 December 2016. The registered capital was increased using undistributed profits from previous years.The registered capital after the increase comprises 40 bearer-share certificates with a nominal value of 25 thousand CZK and 100 bearer-share certificates with a nominal value of 10 thousand CZK (paid).

42

Notes on the Financial Statements

1 Description of the Company

Company name: AIMTEC a.s.Registered office: Hálkova 1203/32, Plzeň, 301 22Legal form: joint-stock companyID: 25201816This company is registered in section B, file no. 558 of the Commercial Register maintained by the Regional Court in Pilsen (date of registration: July 23rd, 1996).

Bank account: Komerční banka, Plzeň Account number: 4822530287/0100

The company’s activities are mainly in the official category “other activities in the field of information technologies”.

On 1 January 2011, the company became a member of the group registered for VAT with the Pilsen tax authority. The company is the representative member of the group; the other members of the group are AIMTEC Consulting s.r.o. (ID 26320975) and AIMTEC Outsourcing s.r.o. (ID 26127407).

As of 31 December 2017, the company is a “small accounting unit” under Section 1(b)(2) of the Accounting Act. In accord with Section 20(1), the financial statement prepared as of December 31st, 2017 will be verified by an auditor.

AIMTEC a.s. is a consolidating accounting unit for a mid-sized group of accounting units that also comprises AIMTEC Consulting s.r.o. and AIMTEC Outsourcing s.r.o. (consolidated accounting units). The consolidated financial statement will be prepared in accord with Czech accounting regulations. In accord with the provisions of Section 22 of the Accounting Act, AIMTEC a.s. is not preparing an annual report; the corresponding information will be included in the consolidated annual report.

2 Foundational Assumptions for the Drafting of the Consolidated Financial StatementAccounts are kept on the basis of the legal regulations applicable on the territory of the Czech Republic. The financial statement was prepared in accord with the Accounting Act, the decree based on which certain provisions of the Accounting Act are implemented, and the Czech Accounting Standards in their wording applicable for 2017.

3 Accounting Policies, Procedures, Valuation and DepreciationFor the preparation of financial statements for 2017, the Company used the following accounting policies, procedures, valuations and depreciations:

Long-term Intangible AssetsLong-term intangible assets are recorded at purchase prices. The company does not book low value intangible assets (up to 60,000 CZK included) on account of long-term assets accounts, but directly to expenses. Long-term intangible assets developed internally are valued at factory cost.

Long-term Tangible AssetsLong-term tangible assets are valued at purchase prices. Interest expenses and other financial expenses connected with their purchase are not included in their valuation. The company does not book low value intangible assets (up to and including 40,000 CZK) on account of long-term assets accounts, but directly to expenses. Costs of technical improvements of long-term assets over 40,000 CZK increase its purchase price. Technical improvements to the leased assets are accounted for separately in the account on which the improved leased assets would be accounted.

The Method of Preparation for the Depreciation PlanDepreciation is calculated based on the purchase price and is charged monthly on the last day of the month. The company decides on the specific form of the fixed assets depreciation plan included after 31 December 2001, upon their inclusion, with its accounting depreciation not governed by tax depreciation. Assets classified as of this day are further amortized according to the original amortization schedule, and thus accounting depreciation is consistent with accelerated depreciation under Act No. 586/1992 Coll., the Income Tax Act, in its wording as of 31 December 2002, if the tax depreciation law for the given type of asset governed it.

43

Financial InvestmentsThe company records capital shares of the company at face value. If the accounting value of financial investments drops, the difference is treated as a temporary reduction in value and is recorded as a provision.

Financial ResourcesCash desks (crown and foreign-currency) were eliminated as of 31 August 2017; the remaining cash was transferred to the company’s back accounts. As of 1 September 2017, the company’s financial resources comprise stamps and cash in bank accounts.

InventoryPurchased inventories are stated at purchase prices. Stocks are in light of their nature and manner of their movement accounted for using method B. ReceivablesReceivables are recorded at their nominal value. As of the date of the financial statements, the value of bad receivables is decreased using rectifying items accounted to expenses that are in the balance sheet under the “correction column”.When determining the method of calculating rectifying items, the company follows the Act No. 593/1992 Coll. of reserves for determining the income tax base, as amended.Estimated accounts receivable are valuated on the basis of expert estimates and calculations.

Shareholder’s CapitalShareholder‘s capital of the Company is stated at the amount recorded in the Commercial Register. Other capital funds are established at the company‘s sole discretion under the statutes.

External Financial SourcesBoth long-term and short-term liabilities are expressed as nominal values.Both long-term and short-term liabilities towards credit institutions are expressed as nominal values. Short-term liabilities towards credit institutions are considered to also include that portion of long-term liabilities towards credit institutions that is payable within one year from the balance-sheet date.Estimated accounts payable are valuated on the basis of expert estimates and calculations.

Foreign-currency TransactionsAssets and liabilities denominated in foreign currencies are translated into Czech crowns using the current daily exchange rate announced by the Czech National Bank valid at the time of their inception and at the time of the financial statements, they are translated at the rate published by the Czech National Bank valid on the last day of the accounting period.In the case of purchase and sale of foreign currency for Czech currency, the foreign currency is translated using the rate at which these values were actually purchased and/or sold.Both realised and unrealised foreign exchange gains and losses are charged to income, respectively to the expenses of the current year.

Use of EstimatesThe preparing of a financial statement demands the use of estimates and assumptions, which have an influence on the assets and liabilities as of the financial-statement date that are shown, and on the amounts of profits and costs shown for the tracked period. These estimates and assumptions were established by the responsible persons on the basis of all relevant information available to them. Nevertheless, as is implied by the nature of estimation, the true future values can differ from these values.

Revenues and expenses accountingRevenues and expenses are accounted on an accrual basis, i.e. in the period to which they relate in terms of material and time, based on the transfer of goods or services, regardless of the time of payment. Exceptions are laid down in the Accrued Expenses and Revenues directive.Revenues are accounted including discounts and free from value added tax.Conjectural items are accounted in profit or loss as known at the balance-sheet date. Income from customer projects in progress is accounted for as of the balance-sheet date based on the expert estimations of the corresponding divisions’ directors. Income TaxCurrent income tax is calculated based on the applicable tax rate and from the book income increased and/or decreased by the permanently or temporarily non-deductible expenses and non-taxable income. Deferred tax is determined from all temporary differences arising from different accounting and tax perspectives on items declared in assets and liabilities. The observed difference is multiplied by the income tax rate applicable in the following tax period. In case

44

of changes in the rate, the deferred tax is recalculated.Bilateral ClearingIn the case of mutual receivables and payables among AIMTEC a.s., AIMTEC Consulting s.r.o. and AIMTEC Outsourcing s.r.o. (the AIMTEC group) the company proceeds in accordance with Section 58, paragraph 2 of Decree No. 500/2002 Coll. as amended, and declares these mutual receivables and payables in the amount of the actual balance.

Transfer Pricing and Cost Allocation within the Aimtec GroupOn the basis of a Contract on Mutual Provision of Consulting Services, consulting/programming services are billed among the companies every month/quarter. Every year, always as of the last day of the accounting period, on the basis of a calculation and the total hours invoiced in the current year, a one-time supplementary accounting at the current rate will be performed, always as of 31 December. The specific data on consulting services mutually provided within the group in 2017 is given in the Notes’ Significant Items in the Profit and Loss Statement section.The group’s internal services are also mutually settled as of 31 December of the current year. The specific amounts for 2017 are stated in the Notes’ Significant Items in the Profit and Loss Statement section.The mutual settlement of other items (generally due to the issuing of supplier invoices for a single member of the group only) is performed either continually on the basis of supplier invoices, if the precise amount pertaining to the other members of the group is known, or as a one-time settlement as of December 31 of the current year, on the basis of a suitably selected allocation key. In both of these cases, the settlement is performed without any supplementary charges, strictly in the amount of the actual costs. During the transfer of costs over the course of the year, a credit to the Other Liabilities account occurs for the group member to whom the supplier issued the invoice, and a debit to expenses occurs for the group member to whom the cost truly belongs. When a settlement is not performed until the end of the year, the group member to whom the supplier issued the invoice receives a debit to its expense account; at the end of the year, this member issues an invoice to the group member to whom the cost actually pertains and posts the invoice to this same expense account. The group member to whom this internal invoice was issued debits the corresponding expense account.In 2017, a change occurred in the distribution of the accounting for the costs of rent, energy and related services among the Aimtec group’s members. In connection with the hiring of a large number of new employees, the organisation of the offices for the individual divisions and departments was changed, and the distribution used to date ceased to be relevant. The subleasing contracts that governed this subject until 2015, and within which specific spaces were assigned to the individual companies, were terminated, and the allocation of costs for rent, energy, and services connected with rent is now always performed as of the balance-sheet date. The allocation is based on the number of employees in the individual companies who utilise the offices in all three of the buildings. Within AIMTEC a.s., the allocation of these expenses is credited to the corresponding expense accounts; for the remaining members of the group, meanwhile, it is debited to the same accounts. The specific numbers are stated in the Notes’ Significant Items in the Profit and Loss Statement section.

45

Purchase price State Acquisition Disposal State


Software 34,601 7,422 515 41,508*

Royalties 60 0 0 60

Other intangible fixed assets 168 97 0 265**

Fixed assets under construction 103 7,417 7,520 0

Total 34,932 14,936 8,035 41,833

* of which the company’s own software comprises 33,345 CZK

** promotional video for the software solutions the company offers



Software 29,325 5,276 0 34,601*

Royalties 60 0 0 60


Fixed assets under construction 0 103 0 103

Total 29,385 5,547 0 34,932

* of which the company’s own software comprises 33,345 CZK

** promotional video for the company’s own ClouEDI software

*** kariera.aimtecglobal.com website (completion date in 2017)


Disposal State


31 Dec 2017

Software 29,577 4,629 515 33,691



Total 29,608 4,807 515 33,901


Accumulated Amortisation

State Depreciaton incl.

Disposal State


31 Dec 2016

Software 26,592 2,985 0 29,577



Total 26,602 3,006 0 29,608


As of 31 December 2017, the total amount of intangible assets that was unlisted in the balance sheet as of 31 December 2016, with an overall value of 547 thousand CZK, was excluded for reasons of non-utilisation, based on a recommendation from the inventory commission; therefore the company no longer records any long-term intangible assets not stated in the balance sheet.

4 Long-term AssetsLong-term Intangible Assets

46

Accumulated Amortisation State Acuisition Disposal State

Thousands CZCK 1 Jan 2017 31 Dec 2017


cars 26,187 4,004 2,387 27,804

hardware 5,150 811 0 5,962


other 217 0 0 217

Prepayments for tangible fixed assets 300 0 300 0

Total 32,349 4,815 2,687 34,478

Purchase Price State Purchase Disposal State


Individual tnagible assets and grous 29,334 3,897 1,182 32,049

cars 24,291 3,078 1,182 26,187

hardware 4,331 819 0 5,150


other 217 0 0 217

Prepayments for tangible fixed assets 0 300 0 300*

Total 29,334 4,197 1,182 32,349

Long-term Intangible Assets


Disposal State


31 Dec 2017


Total 18,558 5,679 2,687 21,850



Disposal State


31 Dec 2016


Total 13,252 6,489 1,182 18,558


As of 31 December 2017, the total amount of tangible assets not stated in the balance sheet, in acquisition prices, was 4,034 thousand CZK (as of 31 December 2016: 3,567 thousand CZK).For 18 cars financed via credit from ČSOB Leasing a.s. or UniCredit Leasing CZ s.r.o. with a total acquisition value in the amount of 13,063 thousand CZK, a transfer of title as security of obligation has been contractually arranged.The company’s leadership does not believe that the market value of the long-term assets significantly differs from the value in the accounts.

*prepayment for car delivered in 2017

47

Financial Investments

2017 2016

Thousands CZK Customers AIMTEC Group Total Customers AIMTEC Group Total

To maturity 45,586 301 45,887 32,402 1,733 34,135

Overdue 9,731 1,536 11,267 6,322 1,892 8,214

Foreign exchange differences -184 -184 -15 -15

Overpayments -473 -473 -366 -366

Total 54,660 1,837 56,497 38,343 3,625 41,968

Company Acquisition Cost of Shares

Share in Basic Capital

Equity Profit and Loss

Dividends

31 Dec 2017 Thousands CZK

% Thousands CZK

Thousands CZK

Thousands CZK

AIMTEC Outsourcing s.r.o. 4,000 100 14,060 1,680 0

AIMTEC Consulting s.r.o. 20,000 100 1,848 238 0

Company Acquisition Cost of Shares

Share in Basic Capital

Equity Profit and Loss

Dividends

31 Dec 2016 Thousands CZK

% Thousands CZK

Thousands CZK

Thousands CZK

AIMTEC Outsourcing s.r.o. 4,000 100 14,060 1,680 0

AIMTEC Consulting s.r.o. 20,000 100 1,611 351 4,000

aitto GmbH 1,059 49

A share of profits from the subsidiary AIMTEC Consulting s.r.o. in 2016 was paid out on the basis of a Partner Decision dated 29 March 2016; the sum of 4,000 thousand CZK was credited to AIMTEC a.s. on 5 April 2016.The share in aitto GmbH was sold for the agreed price of 1 EUR on 6 July 2017. The provision for this financial investment, in the amount of 100%, was annulled as of the same date.Financial data for AIMTEC Outsourcing s.r.o. was obtained from a financial statement verified by an auditor; in the case of AIMTEC Consulting s.r.o., a financial statement not verified by an auditor was used.

5 Inventory

These are products purchased from suppliers at the end of the current year that were supplied to customers at the beginning of the following year.Hardware with a value of 492 thousand CZK was invocied by the supplier as of 29 December of the current year, but the goods were not supplied and accepted at the warehouse until January of the following year.

As of 31 December 2017, the group does not register any liabilities with a maturity of longer than 5 years, nor did it have any as of 31 December 2016.

Purchase Price State State


Software 74 76

Hardware 461 316

Hardware – goods being delivered 492 0

Total 1,027 393

6 ReceivablesTrade Receivables

48

Within the financial statement, in compliance with the corresponding provisions of the government decree, mutual receivables and liabilities were settled within the Aimtec group. As of 31 December 2016 or 31 December 2017, this involved the following sums:

Receivables within the Aimtec group are paid by the subsidiaries on the fly based on their current cash-flow status, which is known to the accounting unit in detail. Because of this, these receivables are considered recoverable, and no provisions are created for them. Due receivables and liabilities are also mutually settled periodically, on the basis of the applicable provision of the Czech Civil Code.

The company closely follows receivables past due and evaluates all acquired information continuously. As of 31 December 2017, the company registers provisions with a total value of 473 thousand CZK (329 thousand CZK as of 31 December 2016), of which 469 thousand CZK represents a provision in the amount of 50% of the total value of receivables, and 4 thousand CZK a rectifying item in the amount of 100% of the total value of a receivable.

Within the financial statement, in compliance with the corresponding provisions of the government decree, mutual receivables and liabilities were settled within the Aimtec group. As of 31 December 2017, in the case of receivables on the grounds of VAT (the actual tax paid by individual group members to the group’s representative member), a settlement with liabilities was performed, and the compensation stated below was performed as of 31 December 2016:

Company 2017 2016

Thousands CZK Default state Compensation Compensated state

Default state Compensation Compensated state

AIMTEC Consulting s.r.o. 1,837 0 1,837 4,212 587 3,625

AIMTEC Outsourcing s.r.o. 20,494 20,494 0 23,538 23,538 0

Total 22,331 20,494 1,837 27,750 24,125 3,625

Company 2017 2016

Thousands CZK Default State Compensation Compensated State

Default State Compensation Compensated State

AIMTEC Consulting s.r.o. 0 0 0 3,018 0 3,018

AIMTEC Outsourcing s.r.o. 0 0 0 246 246 0

Total 0 0 0 3,264 246 3,018

Other receivables

Other Receivables State State


Receivables for employees 45 18

Receivables from insurance payouts 0 15

Receivables due to VAT within the Aimtec Grouo 0 3,018

Loan; insurance overpayment 128 0

Total 173 3,052

49

7 Short-term Financial Investments

The company did not have any short-term securities or shares as of 31 December 2017, nor as of 31 December 2016.

8 Accruals and Deferrals – AssetsDeferred Expenses

9 Long-term LiabilitiesDeferred Tax Liability

Deferred Expenses State State


Sub-deliveries for customer projects that will be invoiced to customers in the next accounting period

4,570 1,516

Liability and accident insurance for the upcoming year 0 1,062

Licences and maintenance for internal software 501 377

Marketing costs (in 2017: advertising for 2018; in 2016: calendar for 2017, advertising for 2017) 21 377

Office furniture (acquired in 2016 in a total amount of 302 thousands CZK, deferred during a period of 4 years)

217 293

Other (rental of garages for upcoming accounting periods, contribution to private pension and life insurance for employees for January of the following year, withholding tax that cannot be taken into account etc.)

277 408

Total 5,586 4,033

Accrued Income State State


Services offered for customer projects as of December 31st of the current year that will be invoiced in the following accounting periods in accord with contracts.

5,680 4,831

Maintenance and reserved services invoiced to customers in the current year for future accounting periods

0 193

Bonus (rebate) for overachieving supplier target 201 0

Total 5,881 5,024

Deferred Tax Liability State State


Difference in accounting and tax carrying values on long-term liabilities -6,309 -6,095

Bonuses for current year paid in January of the following year (includig taxes etc.) 286 0

Basis for deferred tax -6,023 -6,095

Deferred tax (19%) -1,144 -1,158

Accrued Income

50



State as of 31 Dec 2017 TotalThousnad CZK

Up to 1 yearThousnad CZK

Over 1 yearThousnad CZK % p. a.

ČSOB Leasing a.s. cars 9 5,945 1,721 15 3,5


Total 18 12,150 3,610 2,357



State as of 31 Dec 2016 TotalThousnad CZK

Up to 1 yearThousnad CZK

Over 1 yearThousnad CZK % p. a.

ČSOB Leasing a.s. osobní auta 18 10,698 2,992 1,617 3,5

UniCredit Leasing CZ s.r.o. osobní auta 5 2,351 745 1,154 3,5

Total 23 13,049 3,737 2,771

Trade Receivables 2017 2016

Thousands CZK Supliers AIMTEC Group Total Supliers AIMTEC Group Total

To maturity 16,208 7,058 23,266 7,617 12,982 20,599

Overdue 79 0 79 2,069 0 2,069

Overpayments 14 0 14 13 0 13

Foreign exchange differences -20 0 -20 -7 0 -7

Total 16,281 7,058 23,339 9,692 12,982 22,674

10 Short-term LiabilitiesTrade Receivables

Within the financial statement, in compliance with the corresponding provisions of the Government Decree, mutual receivables and liabilities are settled within the Aimtec group. As of 31 December 2017 or 31 December 2016 respectively, this involved the amounts stated below:

Information on the transfer of title as security of obligation for the subject of financing of credit contracts is provided in the Long-term Assets point.

Sundry PayablesOn the account for other long-term liabilities, the company registers the balances of credits offered for the purchase of long-term assets that have a maturity of more than 1 year.The portion of the liabilities payable within one year is reflected in the balance sheet as other short-term liabilities.

Company 2017 2016

Thousands CZK Initial state Compensation Compensated Initial state Compensation Compensated

AIMTEC Consulting s.r.o. 0 0 0 587 587 0

AIMTEC Outsourcing s.r.o. 27,552 20,494 7,058 36,776 23,794 12,982

Total 27,552 20,494 7,058 37,363 24,381 12,982

51

Payables to Employees State State


Salaries for December of the current year paid in January of 3,038 3,161

Travel costs for December of the current year paid in January of the following year 151 134

Total 3,188 2,295

Liability State State Notes


Social security – December of the current year 1,268 1,341 1)

Health insurance – December of the current year 596 607 1)

Total 1,864 1,948

1) The amount was paid on time and in compliance with applicable regulations.

Payables to Employees

Payables – Controlled or Controlling EntityThese are payables towards the controlled entity AIMTEC Outsourcing s.r.o. on the grounds of compensation for increased costs caused by decisions made by the controlling company; the receivable’s due date is 1 March 2018.

Social Security and Health Insurance Payables

State – Tax Payables and Subsidies

Liability State State


as of 31 Dec 2016

Tax on corporate incomes 2,397 1,786

Income tax on individuals – pre-payments, depreciation (December of the current year) 771 826

Withholding tax – foreign (December of the current year) 5 143

VAT payable (December of the current year) 2,975 3,422

VAT refunds unclaimed in the course of the current year -355 -248

Road tax – additional chargé for the current year 3 7

Payment to the state for non-fulfilment of thte quota of employees with health impairments 0 47

Total 5,797 5,983

All liabilities were paid in the following period within the payment deadlines in compliance with applicable regulations. VAT refunds were claimed in regular tax filings in the following year.

Estimated Payables

Estimated Payables State State


Services connected with the rental of offices for the current year invoiced by the renter in the year following

755 634

Sub-deliveries supplied but not invoiced as of the balance-sheet date 352 52

Licensing fees 3,546 2,816

Wage bonuses for the current year paid in January of the following year (including taxes etc.) 286 0

Other 30 62

Total 4,969 3,564

52

Other LiabilitiesThe Other Liabilities item contains primarily the portions of credits provided for the purchase of long-term assets that have a maturity of less than one year (for a more detailed description, see the Long-term Liabilities – Other Liabilities point), as well as liabilities arising from the accounting for salaries for the December 2017 period with a total value of 72 thousand CZK (partial subsidies for employees’ private pensions and life insurance in the amount of 35 thousand CZK and the legally required liability insurance for employees in the amount of 37 thousand CZK; both liabilities were paid by their payment deadline in January of 2018). for 2016, the overall amount for 69 thousand CZK, pensions and life insurance 33 thousand CZK, and legally required liability insurance 36 thousand CZK).

11 Accruals for LiabilitiesDeferred income

12 LeasingThe company does not have any financial leasing contracts running as of 31 December 2017, and likewise did not as of 31 December 2016.

13 Off-Balance-Sheet Items

Deferred income State State


Maintenance for the following year invoiced to customers at the end of the current year 11,652 12,032

Reserved services for the following year invoiced to customers at the end of the current year 717 284

Services for customer projects as of 31 December of the current year invoiced in accord with contractual provisions, which will however not be provided until the following account period

5,443 3,938

Agreed interest on loan (due in the following year) 5 0

Total 17,818 16,254

Off-Balance-Sheet Items State State Recording Method


as of 31 Dec 2016

Minor long-term tangible assets 4,034 3,567 1)

Minor long-term intangible assets 0 548 1)

Assets purchased after the completion of leases that end in the purchase of the leased item 1,077 1,077 2)

Hardware 599 599 2)

Other (furniture) 478 478 2)

Issued advance invoices unpaid as of the balance-sheet date 1,781 2,506 2)

Accepted advance invoices unpaid as of the balance-sheet date 2 39 2)

1) Operations items2) Off-balance-sheet items.

53

14 Information on Transactions with Associated Partiesas of 31 Dec 2017

as of 31 Dec 2016

Thousands CZK Shareholders Board Members


Receivables 0 0 0 0

Provided loans

Guarantees

Trade receivables

Liabilities 0 0 0 0

Received loans

Credit

Trade liabilities

Other performance 1,666 4,977 1,666 4,977

Financial

Non-financial 1,666 4,977 1,666 4,977

cars in use 1,594 4,905 1,594 4,905

services offered

pension insurance 24 24 24 24

private life insurance 48 48 48 48

2017 2016

Thousands CZK Domestic Foreign Domestic Foreign

Revenues from services overall 112,099 61,518 94,714 64,257

Consulting 66,430 32,131 52,141 32,685

Maintenance (self-provided and purchased) 15,422 8,541 13,388 7,789

Periodic support payments 10,278 7,892 9,021 11,249

Sales of own software 14,133 10,658 15,292 10,343

Travel costs for consultants 255 1,411 146 1,694

Car rental 2,033 0 1,990 0

Other (marketing, private fuel costs for employees, shipping, handling, commissions etc.)

3,548 885 2,736 497

Revenues from the sales of goods – total 32,917 16,969 17,777 5,525

Hardware 30,607 6,921 13,338 2,870

Software 2,310 10,048 4,439 2,655

15 Research and Development CostsIn 2017, none of the companies had research and development expenses; the same applies for 2016.

16 Other Significant Items in the Profit and Loss StatementStructure of Revenues from the Sale of Services and Goods

54

Sub-deliveries of Consulting Services for Customer Projects within the Aimtec Group

Structure of Foreign Revenue by Individual Countries

Sub-deliveries of Consulting Services

Within the AIMTEC group Thousands CZK r. 2017 r. 2016

AIMTEC Consulting s.r.o. 1,156 4,947

AIMTEC Outsourcing s.r.o. 3,897 2,964

Total 5,053 7,911

Foreign Revenue 2017 2016

Thousands CZK


Thousands CZK


Europe 71,067 90.55% 62,418 89.45%

Germany 28,962 36.90% 28,175 40.38%

United Kingdom 16,653 21.22% 4,439 6.36%

Slovakia 12,811 16.32% 8,010 11.48%

Hungary 2,906 3.70% 1,003 1.44%

Poland 2,150 2.74% 3,285 4.71%

Finland 1,786 2.28% 0 0.00%

Other countries (less than 2% share in foreign sales in 2017) 5,799 7.39% 17,506 25.09%

United States of America 4,188 5.34% 1,787 2.56%

China 1,232 1.57% 4,611 6.61%

Morocco 604 0.77% 0 0.00%

Russia 573 0.73% 126 0.18%

Mexico 486 0.62% 193 0.28%

Tunisia 337 0.43% 647 0.93%

Total 78,487 69,782

Services (Cost)

Services primarily include sub-deliveries for customer projects (consulting services and maintenance) in the amount of 56 thousand CZK, with 46 thousand CZK of this being for consulting services within the Aimtec group.

Other Operating Revenues

Other Operating Revenues State State


Allocation of Back Office costs (profit settlement) 6,830 5,939

Insurance payouts 1,196 803

Returns of VAT within the European Union 0 89

Sales of cars removed from property due to total loss 0 181

Other (accounting for estimated items, etc.) 33 48

Total 8,059 7,060

55

Services within the Group (Revenues)

Services within the Group (Costs)

Services within the Group (revenues) AIMTEC Consulting s.r.o. AIMTEC Outsourcing s.r.o.

Thousands CZK 2017 2016 2017 2016

Human resources management 0 0 471 472

Technical Support (IIS) 0 0 1,018 980

Technical Support (ITC) 0 0 1,854 1,628

Technical Support (OTH) 0 0 1,259 1,224

Strategic management 0 0 2,228 1,635

Total 0 0 6,830 5,939

Services within the Group (Costs) AIMTEC Consulting s.r.o. AIMTEC Outsourcing s.r.o.

Thousands CZK 2017 2016 2017 2016

Sales activities 0 0 7,796 5,695

Marketing activities 0 587 1,168 745

Accounting and finance 0 0 491 352

Office management 0 0 452 440

Total 0 587 9,907 7,232

Other Operating Expenses

Other Financial Costs

Other Financial Income

Other Operating Expenses State State


Allocation of Back Office costs (profit settlement) 9,907 7,819

Compensation of costs for subsidiary 5,725 0

Residual value of vehicle after accident (removal from fleet due to total loss) 0 467

Other (settlement of estimated entries, compensation of damages for non-functional systems provided to customers, etc.)

650 197

Total 16,282 8,483

Other Financial Costs State State


Net book value of sold share in aitto GmbH 1,086 0

Currency exchange losses 2,868 322

Gifts 853 276

Insurance 1,209 1,190

Banking costs 172 145

Total 6,188 1,933

Other Financial Income State State


Currency Exchange gains 2,110 237

Total 2,110 237

56

17 Assumption of the Company’s Continued Functioning

The fi nancial statement as of 31 December 2017 was prepared under the assumption that the company will continue its operations in the future. The included fi nancial statement therefore does not contain any provisions that might result from uncertainty in this regard.

18 Important Events after the Balance-Sheet Date

No important events occurred between the balance sheet date and date of fi nancial statement.

Processed by: Michaela Brožová

Balance-sheet date: 31 December 2017

Date of drafting of the consolidated fi nancial statement: 16 April 2018

Ing. Jaroslav Follprecht, Vice Chairman AIMTEC a.s.

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