Integrated Annual Report of LOTOS Capital Group 2015

⁽¹⁾ On March 12th 2015, LOTOS Park Technologiczny Sp. z o.o. w likwidacji (in liquidation) was deleted from the National Court Register. The liquidation proceedings were opened to achieve one of the objectives of the 2013−2015 Efficiency and Growth Programme, which is to streamline the structure of the LOTOS Group.

⁽²⁾ The companies were excluded from consolidation because the figures reported in their financial statements as at December 31st 2015 were immaterial to fulfilling the obligation provided for in IFRS 10 Consolidated Financial Statements.

⁽³⁾ On June 1st 2015, Grupa LOTOS S.A. established the LOTOS Foundation. The Foundation’s mission is the wide-ranging social activity to make a positive contribution to its social and natural environment. The LOTOS Foundation’s activities focus mainly on projects in the area of environmental protection, science, education, and social development.

⁽⁴⁾ Joint venture agreement between Grupa LOTOS S.A. and BP Europe SE on joint operations related to supply of aviation fuel through LOTOS - Air BP Polska Sp. z o.o.

⁽⁵⁾ Agreement on cooperation between LOTOS Petrobaltic S.A. and CalEnergy Resources Poland Sp. z o.o. with respect to development and production of gas and condensate reserves from the B-4 and B-6 fields in the Baltic Sea, performed through special purpose vehicles Baltic Gas spółka z ograniczoną odpowiedzialnością i wspólnicy sp.k. and Baltic Gas Sp. z o.o. (general partner).
For IFRS purposes, Baltic Gas Sp. z o.o. i wspólnicy sp.k. and Baltic Gas Sp. z o.o. are the Group’s equity-accounted joint ventures (IFRS 11).
In 2015, Cal Energy Resources Poland Sp. z o.o. and LOTOS Petrobaltic S.A. made cash contributions to Baltic Gas spółka z ograniczoną odpowiedzialnością i wspólnicy sp. k. of PLN 40,176 thousand and PLN 3,877 thousand, respectively, which changed the Group’s ownership interest in the company. Furthermore, in Q2 2015, those shareholders acquired new shares in the increased (by PLN 40 thousand) share capital of Baltic Gas Sp. z o.o. The expenditure of PLN 3,898 thousand, representing the cash contributions made by LOTOS Petrobaltic S.A. to the abovementioned companies, was disclosed in the consolidated statement of cash flows under Cash contributions − equity-accounted joint ventures. See Note 16.1.

⁽⁶⁾ Joint venture set up for the purpose of oil exploration and production operations in Lithuania, operated in the form of UAB Minijos Nafta.

The Notes to the consolidated financial statements are an integral part of the statements.
(This is a translation of a document originally issued in Polish)