Consolidated report for Q of Integer.pl SA Capital Group

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Consolidated report for Q1 2015

of Integer.pl SA Capital Group

Notes to the CONSOLIDATED QUARTERLY REPORT

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CONTENTS:

1. Basic information about the companies of Integer.pl Capital Group ... 4

2. Principles adopted in the preparation of the condensed consolidated report for Q1 2015. .

……….10

3. Material events affecting the operations of the Capital Group companies and other

relevant information relating to Q1 2015 and until the publication of consolidated quarterly report

for Q1 2015. ... 13

4. Selected financial data disclosed in the condensed consolidated quarterly financial

statements and the condensed separate quarterly financial statements translated to EUR. ... 18

5. A list of shareholders holding, directly or indirectly through the subsidiaries, 5% of the

total number of voting rights at the General Meeting of Shareholders as at the date of

submission of this report and changes in the shareholding structure with respect to qualifying

shareholdings of the Issuer's since the date of submission of the previous quarterly report. .... 22

6. Changes in the ownership structure in Q1 2015 and until the date of this report. ... 22

7. The holding of the Issuer's shares or rights to shares by members of the Issuer's

Management Board or Supervisory Board as at the date of submission of this quarterly report,

including any changes thereof since the date of submission of the previous quarterly report,

separately for each such shareholder. ... 22

8. Proceedings pending before a court, an arbitration body or a public authority, including

information about single proceedings relating to the liabilities or receivables of the Issuer or its

subsidiary, with a value of at least 10% of the Issuer's equity, or two or more proceedings related

to the liabilities and receivables with an aggregate value of at least 10% of the Issuer's equity. 23

9. Information on one or more related-party transactions entered into by the Issuer or any

of its subsidiaries, where such transactions are considered material, whether individually or

collectively, entered into otherwise than on arm's length basis... 23

10. Information about guarantees or sureties for the repayment of borrowings granted by the

Issuer or its subsidiaries to a single entity or a subsidiary of that entity, where a total value of

the existing guarantees or sureties is equivalent to at least 10% of the Issuer's equity. ... 23

11. Other information which, according to the Issuer, is essential for the assessment of the

Issuer's human resources, assets, financial position, results of the operations and any changes

thereof as well as any information essential for the assessment of the the Issuer's ability to

perform obligations. ... 24

12. Factors which, in the Issuer's opinion, will have an impact on the Issuer's and the

Group's financial results, at least in the coming quarter ... 25

13. Notes on the seasonal or cyclical nature of the Group's activity in Q1 2015. ... 26

14. Factors and events, notably of extraordinary nature, which have a significant impact on

the recorded consolidated financial results. ... 26

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15. A brief description of the Issuer's achievements or failures in Q1 2015, including the

associated most significant events. ... 26

16. Changes in contingent liabilities or assets since the end of the previous financial year. 30

17. Issue, redemption and repayment of equity and non-equity securities. ... 30

18. Dividend paid (or declared), in total and per one share, broken down into ordinary and

preference shares. ... 31

19. Events after the reporting date of the quarterly condensed financial statements, which

are not disclosed in the financial statements but could have a significant impact on the Issuer's

financial results in the future. ... 31

20. The Management Board's standpoint regarding the achievement of forecasts for the

financial year previously issued, in the light of the results presented in the quarterly report. .... 32

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1. Basic information about the companies of Integer.pl Capital Group

The business profiles of the companies of Integer.pl SA Capital Group focus on the following areas:

 provision of courier and postal services to institutional and retail customers,

 parcel services for the e-commerce sector on domestic and foreign markets,

 financial and insurance services,

 production of Paczkomaty™.

Parent Company.

The core business of Integer.pl SA is the production and sale of Paczkomaty™ parcel machines and holding activities involving the management of Integer.pl SA Capital Group. Integer.pl SA has been operating as a joint-stock company since 19 March 2007, when the District Court for Kraków - Śródmieście, 11th Commercial Division of the National Court Register, registered the transformation of Integer.pl Sp. z o.o. into a joint-stock company under the Resolution of the Extraordinary Meeting of Shareholders of Integer.pl Sp. z o.o. dated 26 February 2007.

Integer.pl SA has been listed on the Warsaw Stock Exchange since October 2007.

Company name: Integer.pl Spółka Akcyjna

Registered office: Kraków

Address: 30-624 Kraków, ul. Malborska 130

Telephone: +48 12 619 98 00

Fax: +48 12 619 98 01

E-mail: biuro@integer.pl

Website: www.integer.pl

Statistical Identification Number (REGON): 356590980

Tax Identification Number (NIP): 678-28-81-784

National Court Register (KRS): 0000276519

Share capital at 31.03.2015, fully paid-up: PLN 7 764 217.00

Company's duration: Indefinite

Auditor: Deloitte Polska Spółka z ograniczoną

odpowiedzialnością Sp. k. Management Board:

President: Rafał Brzoska

Vice President: Krzysztof Kołpa

Member: Rossen Hadjiev

Supervisory Board:

Chair: Anna Izydorek - Brzoska

Vice-Chair: Rafał Abratański

Secretary: Krzysztof Setkowicz

Member : Zbigniew Popielski

Member : Arkadiusz Jastrzębski

Under the Company's Articles of Association, the governing bodies of Integer.pl SA include:  General Meeting

 Supervisory Board  Management Board

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In Q1 2015, the composition of the Management Board and the Supervisory Board of Integer.pl SA remained unchanged. Direct subsidiaries of the parent company, Integer.pl SA:

1. InPost Paczkomaty Spółka z ograniczoną odpowiedzialnością.

Company name: InPost Paczkomaty Sp. z o.o.

Telephone: +48 12 619 98 00

Fax: +48 12 619 98 01

Business profile: Parcel machine servicesand external courier

services

Tax Identification Numbe (NIP): 6792895061

Shares: 99.99% Integer.pl SA

odpowiedzialnością Sp. k. InPost Paczkomaty Sp. z o.o. - a subsidiary of Integer.pl SA, in which Integer.pl SA holds 99.99% of shares.

Since 1 June 2014, the company has been involved in a resale of parcel machines and courier services purchased from other entities. InPost Paczkomaty Sp. z o.o. has the following subsidiaries:

1) Verbis Alfa Sp. z o.o. – 100.00% (*)

2) Verbis 2 Sp. z o.o. – 100.00% - Verbis 2 Sp. z o.o. S.K.A (the General Partner)

(*) On 11.02.2015, Verbis Alfa Sp. z o.o. increased its share capital from PLN 5,000.00 to PLN 500,000.00. The increase was registered on 13 May 2015.

2. InSupport Center Spółka z ograniczoną odpowiedzialnością.

Company name: InSupport Center Sp. z o.o.

Registered office: Zabierzów

Address: 32-080 Zabierzów, ul. Krakowska 342

Telephone: +48 12 619 98 00

Fax: +48 12 619 98 01

Business profile: Support services for the Group companies

Tax Identification Number (NIP): 6770009603

Shares: 100% Integer.pl SA

odpowiedzialnością Sp. k.

The main activity of the company is to operate a Customer Service Centre (CSC). CSC builds and strengthens relationships with the current and future clients. The purpose of the Customer Service Centre is to assist in obtaining any information on the parcel machine services provided abroad and in Poland. The Customer Service Centre is used by workers, messengers, fitters and customers of the parcel machines services.

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CSC provides services for subsidiaries of the easyPack Group and for external entity, Aqmet Spółka z ograniczoną odpowiedzialnością Sp.k.

The company offers retail leases to the parent company, Integer.pl SA, and to its subsidiary, InitTec Sp. z o.o. It subleases spaces to Integer.pl SA for production of parcel machines and to InitTec Sp. z o.o. for its Research and Development Department.

3. Integer Group Services Spółka z ograniczoną odpowiedzialnością

Company name: Integer Group Services Sp. z o.o.

Telephone: +48 12 619 98 00

Fax: +48 12 619 98 01

Business profile: Project management

Shares: 96% Integer.pl SA

Share capital at 31.03.2015, fully paid-up: PLN 50 000.00

Integer Group Services Sp. z o.o. - a subsidiary of Integer.pl SA Capital Group, in which Integer.pl SA holds 96.00% of shares. Integer Group Services Sp. z o.o. is gradually changing its profile, adapting its activities to the immediate needs arising from the development of Integer.pl SA Capital Group. It focuses more and more attention on supporting the projects implemented by the Group, on evaluation and verification of development plans. Some employees of the leading departments in the Group's structure, such as controlling or legal department, were delegated to these tasks. The company also provides administrative services to the Group.

4. IntegerEU Limited.

Company name: IntegerEU Ltd

Registered office: Nicosia, Cyprus

Address: 2 Sofouli Chanteclair Building, 8th floor,

office/flat 801

Business profile: Holding operations

Company registration number: HE237823

Tax Identification Number (NIP): 12237823R

Share capital at 31.03.2015, fully paid-up: EUR 82 488.00

Auditor: Nexia Poyiadjis - Head Office

IntegerEU Limited - a subsidiary of Integer.pl SA, in which Integer.pl SA holds 100% of shares. Company incorporated in Cyprus, with its registered office in Nicosia. IntegerEU Limited is a holding company operating outside Poland. Integer Ukraine LLC provides services related to the distribution of mass advertising mail, intended mainly for business customers. The company's scope of operations encompasses 200 biggest cities and towns in Ukraine. E-Solutions LLC was established for the purpose of providing IT services related in particular to the software for servicing Paczkomaty™ in the territory of the Russia.

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5. InItTec Spółka z ograniczoną odpowiedzialnością.

Company name: InItTec Sp. z o.o.

Telephone: +48 12 619 98 00

Fax: +48 12 619 98 01

Business profile: Research and development

InItTec Sp. z o.o. - a subsidiary of Integer.pl SA Capital Group, in which Integer.pl SA holds 100% of shares. The activity of InItTec Sp. z o.o., based on modern technologies and direct marketing solutions, primarily focuses on research and development activity which provides support, among others, to the businesses of subsidiaries of Integer.pl SA Capital Group. InItTec Sp. z o.o. provides maintenance and ensures good operation of the technological infrastructure (hardware/ software) of Integer.pl SA Capital Group and external entities. The company actively and successfully acquires at the same time - in order to maximise the economic benefits of their competence and copyrights, software licenses or other intangible assets - customers and business partners from outside Integer.pl SA Capital Group. Based on a multi-levelled previous experience, the company provides full support to the extent necessary to ensure the development of InPost parcel machine network around the world.

6. AQ-Tech Spółka z ograniczoną odpowiedzialnością.

Company name: AQ-Tech Sp. z o.o.

Telephone: +48 12 619 98 00

Fax: +48 12 619 98 01

Business profile: Research and development

National Court Register(KRS): 0000407763

Share capital at 31.03.2015, fully paid-up: PLN 6 000.00

AQ-Tech Sp. z o.o. - a subsidiary of Integer.pl SA Capital Group, in which Integer.pl SA holds 100% of shares. The company is the owner of unique know-how, non-patented expertise and experiences in technology and production process of components for Paczkomaty™ and Paczkomaty™ as well as registered community designs issued by the Office for Harmonisation in the Internal Market.

7. InPost Australia Pty Limited.

Company name: InPost Australia Pty Ltd.

Registered office: Melbourne, Australia

Address: Level 30 Bourke Place, 600 Bourke Street, VIC 3000

Business profile: Development of Paczkomaty™ network

Company registration number: ACN: 168 059 710

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Share capital at 31.03.2015, fully paid-up: AUD 100.00

InPost Australia Pty Ltd - a subsidiary of Integer.pl SA Capital Group, in which Integer.pl SA holds 100% of shares. InPost Australia Pty Ltd. is an Australian company responsible for the project management and maintenance of Paczkomaty™.

8. InPost Canada Incorporation.

Company name: InPost Canada Inc.

Registered office: Toronto, Canada

Address: 55 Browns Line, Toronto, ON M8W 3S2

Company registration number: 823302179

Tax Identification Number (NIP): 823302179 RC001

Share capital at 31.03.2015, fully paid-up: CAD 100 000.00

Inpost Canada Inc. - a subsidiary of Integer.pl SA Capital Group, in which Integer.pl SA holds 75% of shares. A company incorporated in Canada responsible for the development of Paczkomaty™ network.

9. easyPack Plus Self Storage LLC.

Company name: easyPack plus Self Storage LLC.

Registered office: Dubai, United Arab Emirates

Address: Real Estate Center, Al-Qouz, Dubai,

Share capital at 31.03.2015, fully paid-up: AED 300 000

easyPack Plus Self Storage LLC - a subsidiary of Integer.pl SA Capital Group, in which Integer.pl SA holds 50% of shares. The company is responsible for the development of Paczkomaty™ network.

10. InPost do Brasillogistica e locacao de equipamentos LTDA.

Company name: InPost do Brasillogistica a locacao de equipamentos LTDA

Registered office: Rio de Janeiro, Brazil

Address: Avenida Evandro Lins, No. 840 Suite 101, Barra de Tijuca

Share capital at the company registration date: BRL 7 454 616.00

InPost do Brasillogistica a locacao de equipamentos LTDA - a subsidiary of Integer.pl SA Capital Group, in which Integer.pl SA holds 90.00% of shares. The company is a Brazilian company responsible for the project management and maintenance of Paczkomaty™.

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In Q1 2015, on 13 February 2015, a new company of Integer.pl SA Capital Group was entered in the National Court Register. The company will ultimately provide postal and courier services.

Company name: InPost Express Sp. z o.o.

Telephone: +48 12 619 98 00

Fax: +48 12 619 98 01

Business profile: Postal and courier activities

Share capital at the company registration date: PLN 5 000.00

12. Integer Inwestycje Spółka z ograniczoną odpowiedzialnością.

In Q1 2015, on 10 February 2015, a new company of Integer.pl SA Capital Group was entered in the National Court Register. The company will ultimately provide postal and courier services.

Company name: Integer Inwestycje Sp. z o.o.(*)

Telephone: +48 12 619 98 00

Fax: +48 12 619 98 01

Business profile: Holding operations

Shares: 100.00% Integer.pl SA (**)

Share capital at the company registration date: PLN 5 000.00

(*) On 11.05.2015, the company name was changed to Integer.pl Inwestycje Sp. z o.o., as well as on (**) 11.05.2015 the increase in share capital of the company was registered as part of a in-kind contribution of series A shares of InPost SA by InPost Paczkomaty Sp. z o.o. and Integer.pl SA.

As a result, the company, at the date of publication of this report for Q1 2015, is a subsidiary of InPost Paczkomaty Sp. z o.o. in which it holds 89.93% of shares.

Integer.pl Inwestycje Sp. z o.o. owns a subsidiary: InPost SA, which together with: "Bezpieczny List" and PGP SA creates the InPost Group.

13. easyPack Spółka z ograniczoną odpowiedzialnością.

Company name: easyPack Sp. z o.o.

Telephone: +48 12 619 98 00

Fax: +48 12 619 98 01

Business profile: Management of Paczkomaty™network

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odpowiedzialnością Sp. k. As at 31 March 2015, the company comprises the following subsidiaries forming easyPack Capital Group:

1) Granatana Limited, a company incorporated in Cyprus, which is an indirect shareholder (through Giverty Holding Limited) of easyPack Russia LLC, established to develop parcel services on the territory of the Russian Federation,

2) Postal Terminals s.r.o., a company incorporated in Slovakia to develop a network of parcel machines in the Slovak Republic,

3) InPost UK LTD, a company incorporated in the UK, established to develop parcel services in the United Kingdom, 4) Postal Terminals CZ s.r.o., a company incorporated in the Czech Republic, established to provide parcel services

via Paczkomaty™ in the Czech Republic,

5) Postha 24 LLC, a company incorporated in the Ukraine, established to provide parcel services via Paczkomaty™ in Ukraine,

6) easyPack Far East Limited, a company operating in Hong Kong in the field of holding activities for companies in other countries in the Far East. The Company holds shares in InPost Malaysia SDN.BHD established to provide services to the Malaysian market.

7) InPost Hungary Kft, a company incorporated in Hungary, established to provide parcel services via Paczkomaty™ in Hungary,

8) E-commercial Innovations S.L., a company incorporated in Spain, established to provide parcel services via Paczkomaty™ in Spain,

9) InPost France SAS, a company incorporated in France, established to provide parcel services via Paczkomaty™ in France,

10) Locker InPost Italia S.r.l., a company incorporated in Italy, established to provide parcel services via Paczkomaty™ in Italy,

11) InPost Norway AS, based in Oslo, a company incorporated in Norway, established to provide parcel services via Paczkomaty™ in Norway,

12) TISAK InPost LLC in which easyPack Sp. z o.o. holds 50% of shares. It is incorporated in accordance with Croatian law. The company is responsible for the development of Paczkomaty™ network.

2. Principles adopted in the preparation of the condensed consolidated report for Q1 2015. 2.1 Statement of compliance.

The condensed consolidated financial statements and the condensed separate financial statements presented in this consolidated report have been prepared based on the accounting principles consistent with IAS 34 "Interim Financial Reporting", in accordance with the IFRS endorsed by the European Union and to the extent required by the Regulation of the Minister of Finance of 19 February 2009 on the current and periodic information provided by issuers of securities and the conditions under which certain information required under the laws of a non-Member State may be considered equivalent (Journal of Laws No. 33, item 259), and they cover the period from 1 January to 31 March 2015 and the comparable period from 1 January to 31 March 2014.

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The condensed consolidated financial statements are consistent with all the requirements of IAS 34 "Interim Financial Reporting" and present a true and fair view of:

the Group's financial position as at 31 March 2015 and 31 March 2014,

the Group's profit or loss for the period of three months ended 31 March 2015 and 31 March 2014, the Group's cash flows for the period of three months ended 31 March 2015 and 31 March 2014.

The condensed separate financial statements are consistent with all the requirements of IAS 34 "Interim Financial Reporting" and present a true and fair view of:

the financial position of Integer.pl SA as at 31 March 2015 and 31 March 2014;

profit or loss of Integer.pl SA for the period of three months ended 31 March 2015 and 31 March 2014; cash flows of Integer.pl SA for the period of three months ended 31 March 2015 and 31 March 2014.

The consolidated and condensed separate financial statements have been prepared based on the assumption that Integer.pl SA Capital Group will continue as a going concern in the foreseeable future. As at the date of approval of these financial statements there are no circumstances indicating any threat to the ability of Integer.pl Capital Group to continue as a going concern.

Pursuant to § 83.1. of the Regulation of the Minister of Finance, an Issuer that is a parent company is not obliged to present a separate quarterly report if the consolidated quarterly report contains the Issuer's condensed quarterly financial statements, including:

the separate statement of comprehensive income, separate statement of financial position,

the separate statement of changes in equity, the separate cash flow statements.

2.2 Format and general principles for the preparation of the report for Q1 2015. Consolidated quarterly report QSr comprises:

consolidated statement of comprehensive income separate statement of comprehensive income consolidated statement of financial position separate statement of financial position consolidated statement of changes in equity separate statement of changes in equity consolidated statement of cash flows separate statement of cash flows selected explanatory notes other relevant information.

The condensed consolidated and separate quarterly financial statements presented in this consolidated quarterly report have been prepared in accordance with the accounting principles based on:

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the IFRS endorsed by the European Union,

Regulation of the Minister of Finance of 19 February 2009 on the current and periodic information provided by issuers of securities and the conditions under which certain information required under the laws of a non-Member State may be considered equivalent (Journal of Laws No. 33, item 259), as amended.

The consolidated quarterly report comprises: Notes to the consolidated quarterly report.

Condensed consolidated financial statements of the Capital Group. Condensed separate financial statements of Integer.pl SA. 2.3 Adopted accounting principles.

In the reporting period, the Integer.pl Capital Group did not introduce any significant changes in the accounting principles in relation to those applied in the previous periods.

The quarterly consolidated financial statements are prepared on the basis of the documentation of Integer.pl Capital Group companies subject to consolidation and the applicable provisions of law. The documentation is prepared on the basis of their books of account and the underlying documents based on which entries in the accounting records are made as well as any other necessary documents and information.

The accounting principles adopted in the preparation of the quarterly consolidated financial statements and the quarterly separate financial statements are described in the notes to those statements.

2.4 The functional currency and presentation currency of the financial statements and the principles adopted for the conversion of amounts:

a) functional currency and presentation currency

Polish zloty is the functional currency of the parent company and its subsidiaries and the presentation currency of the condensed consolidated financial statements.

b) principles adopted for the conversion of financial data

The amounts stated in EUR for the reporting periods were translated according to the following principles:

Items from the statements of comprehensive income and the cash flow statement were translated at the exchange rate calculated as the arithmetic mean of the exchange rates published by the National Bank of Poland as at the end of each month which in the period:

from 1 January to 31 March 2015 amounted to 4.1894 from 1 January to 31 March 2014 amounted to 4.1894

Items from the statements of financial position were translated at the exchange rate published by the National Bank of Poland as at 31 March 2015, i.e. 4.0890, and as at 31 December 2014, i.e. 4.2623.

Profit per share was calculated as follows: net profit for the period / number of shares / weighted average number of shares in the period.

BVPS (book value per share) was calculated as follows: equity/number of shares/weighted average number of shares in the period.

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All data presented in these "Notes to the consolidated quarterly report" are stated in thousands of PLN, unless indicated otherwise.

2.4 Consolidated companies of Integer.pl SA Capital Group.

The parent company Integer.pl SA approves and controls the operation strategies of its subsidiaries. It has an influence on the organisation of Integer.pl Capital Group in such areas as law, economy, finances and reporting.

The condensed consolidated financial statements cover Integer.pl SA as the parent company and the following direct subsidiaries of the Issuerwithin Integer.pl SA Capital Group as at 31 March 2015. These include:

No. Companies consolidated as at 31 March 2015 Companies consolidated as at 31 March 2014

1. InPost Paczkomaty Sp. z o.o. InPost Sp. z o.o. (change to InPost Paczkomaty 02.06.2014)

2. Integer Group Services Sp. z .o.o. Integer Group Services Sp. z .o.o.

3. Insupport Center Sp. z o.o. Insupport Center Sp. z o.o.

4. Integer Eu Limited Integer Eu Limited

5. InItTec Sp. z o.o. InItTec Sp. z o.o.

6. easyPack Sp. z o.o. easyPack Sp. z o.o.

7. AQ – Tech Sp. z o.o. AQ – Tech Sp. z o.o.

8.

---

Nowoczesne Usługi Pocztowe Sp. z o.o. (change to InPost Sp. z

o.o. then to Paczkomaty 02.06.2014)

9. Integer Inwestycje Sp. z o.o. ---

10. InPost Australia PTY Limited InPost Australia PTY Limited

11. InPost Canada Inc. InPost Canada Inc.

12. easyPack Plus Self Storage LLC easyPack Plus Self Storage LLC

13. InPost Express Sp. z o.o. ---

14. InPost do Brasillogistica a locacao de equipamentos LTDA ---

3. Material events affecting the operations of the Capital Group companies and other relevant information relating to Q1 2015 and until the publication of consolidated quarterly report for Q1 2015.

1. Adoption of a resolution by the Management Board of BondSpot SA concerning the introduction to alternative trading system on Catalyst of INT1217 and INT1219 series bearer bonds of Integer.pl SA and the appointment of the first day of trading of these bonds.

On 3 February 2015, on the basis of Article 7(1) of Alternative Trading System Rules, the Management Board of BondSpot SA adopted Resolution No. 19/15 concerning the introduction to alternative trading system on Catalyst of bearer bonds of Integer.pl SA, with nominal value of PLN 1 000.00 each:

1) 15 000 of INT1217 series bearer bonds with a total nominal value of PLN 15 000 000.00. 2) 15 000 of INT1219 series bearer bonds with a total nominal value of PLN 15 000 000.00.

12 February 2015 was appointed as the first day of trading of INT1217 and INT1219 series bearer bonds of Integer.pl SA with a par value: PLN 1 000.00 and the total nominal value of PLN 30 000 000.00.

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INT1217 series - 15 000 bearer bonds with a total nominal value of PLN 15 000 000.00. For these bonds, the following were also determined:

a) The last trading day - 30 November 2017 b) Unit of trading - 1 bond

c) Obligatory unit - 100 bonds

INT1219 series - 15 000 bearer bonds with a total nominal value of PLN 15 000 000.00. For these bonds, the following were also determined:

a) The last trading day - 2 December 2019 b) Unit of trading - 1 bond

c) Obligatory unit - 100 bonds

2. Conclusion of significant agreements within Integer.pl SA Capital Group.

On 17 March 2015, the Issuer concluded an agreement with its subsidiary Integer Inwestycje Sp. z o.o. to transfer the ownership to 1 007 000 of series A bearer shares of a nominal value of PLN 1 per share and the total nominal value of PLN 1 007 000 in the share capital of InPost SA (further referred to as "InPost SA"), by in kind contribution in order for the Issuer to pay share capital increase of Integer Inwestycje Sp. z o.o. with its registered office in Kraków in exchange for a contribution in kind of 1 007 000 series A bearer shares of InPost SA. The market value of 1 007 000 A series bearer shares of InPost SA contributed by the Issuer to Integer Inwestycje Sp. z o.o. amounted to PLN 37.54 per share, i.e. PLN 37 802 780.00 for all the shares transferred. In return for an in-kind contribution of shares of InPost SA to Integer Inwestycje Sp. z o.o., the Issuer will receive 756 055 shares in the increased share capital of Integer Inwestycje Sp. z o.o. The agreement to transfer the shares of InPost SA as an in-kind contribution was not executed subject to any condition or term, and it did not provide for any liquidated damages or any other specific provisions. Under the above agreement, 1 007 000 shares of InPost SA were transferred to Integer Inwestycje Sp. z o.o. upon conclusion of the agreement.

At the same time a subsidiary of the Issuer, i.e. InPost Paczkomaty sp. z o.o. (further "subsidiary"), on 17 March 2015, concluded agreement to transfer the ownership to 8 993 000 of series A bearer shares, of a nominal value of PLN 1 per share and the total nominal value of PLN 8 993 000 in the share capital of InPost SA, by in kind contribution in order to pay for share capital increase of Integer Inwestycje Sp. z o.o. in exchange for a contribution in kind of 8 993 000 of series A bearer shares of InPost SA. The market value of 8 993 000 A series bearer shares of InPost SA, contributed by the subsidiary to Integer Inwestycje Sp. z o.o., amounted to PLN 37.54 per share, i.e. PLN 337 597 220 for all the transferred shares. In return for an in-kind contribution of shares of InPost SA to Integer Inwestycje Sp. z o.o., the subsidiary will receive 6 751 944 shares in the increased share capital of Integer Inwestycje Sp. z o.o. The agreement to transfer the shares of InPost SA as an in-kind contribution was not executed subject to any condition or term, and it did not provide for any liquidated damages or any other specific provisions. Under the above agreement, the title to 8 993 000 shares of InPost SA was transferred to Integer Inwestycje sp. z o.o. upon conclusion of the agreement.

Both agreements were considered significant because of their total value of PLN 375 400 000.00. Moreover, the agreements have an organizational nature and are connected with a planned initial public offering of shares of InPost SA and their introduction to the Warsaw Stock Exchange.

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On 11.05.2015, the court registered the increase of the share capital of Integer Inwestrycje Sp. z o.o. as part of in kind contribution of series A shares of InPost SA.

As at the publication date of this report for Q1 2015, InPost Paczkomaty Sp. z o.o. holds 89.93% of shares, whereas the Issuer holds 10.07% of shares in the share capital of Integer Inwestycje Sp. z o.o. (the current name Integer.pl Inwestycje Sp. z o.o.).

3. Convening Meetings of Bondholders for bond series: INT1217, INT0918, INT0617, INT1219.

In connection with the infringement of the condition set out in section 9.1 (j) of the Terms of Bond Issue of series:

a) INT1217 registered in the National Depository for Securities under the code ISIN: PLINTEG00052, issued on 12 December 2014 by Integer.pl SA,

b) INT0918 registered in the National Depository for Securities under the code ISIN: PLINTEG00045, issued on 29 September 2014 by Integer.pl SA,

c) INT0617 registered in the National Depository for Securities under the code ISIN: PLINTEG00037, issued on 12 June 2014 by Integer.pl SA,

d) INT1219 registered in the National Depository for Securities under the code ISIN: PLINTEG00060, issued on 12 December 2014 by Integer.pl SA,

Integer.pl SA convened the Meeting of Bondholders on 13 April 2015. The subject of the Meeting of Bondholders was to adopt a resolution permitting to change the Terms of Bond Issue. The object of the planned changes in the Terms of Bond Issue was to increase the allowable ratio of net debt to EBITDA and therefore increase the interest margin during periods when the ratio will exceed, at the specific examination date, the level of 3.5 set out in the Terms of Issue.

The Meetings of Bondholders were held on 13 April 2015, when, in respect of each of these series of Bonds separately, a resolution was passed permitting to change the Terms of Bond Issue, in particular by:

- increase in the allowable net debt to EBITDA in subsequent periods of examination from 3.50 to a) 4.50 as at 30 December 2014 (with respect to INT0617, INT1217 and INT1219 series) b) 4.50 as at 30 June 2015

c) 4.00 as at 31 December 2015 and

d) 3.50 as at 30 June 2016 and any subsequent date of examination

- increase in the interest margin during the periods from the publication date of semi-annual or annual consolidated financial statements of the Issuer, where, in accordance with the semi-annual or annual financial statements of the Issuer's Group the level of net debt to EBITDA, as at the examination date will be higher than 3.5, whereas the increased margin shall remain in force until such time as, according to the semi-annual and annual consolidated financial statements of the Issuer, the level of net debt to EBITDA falls on the date of examination or falls below 3.5

- for INT0617, INT1217 and INT1219 series the possibility of Early Redemption was excluded due to infringement in the form of excess of net debt to EBITDA for the period ended 31 December 2014, i.e. infringement described in section 9.1 of the Terms of Issue of the series.

(16)

At the same time Integer.pl SA and Bondholders of each bond series concluded the relevant annexes to the Terms of Issue, in accordance with section 13 of the Terms of Issue and section 5 of each Bondholders Meeting Regulations.

The resolutions adopted by the Meeting of Bondholders of each of the above series and annexes executed by the Issuer with all Bondholders who voted for change of the Terms of Issue were published in current reports no.: 15,16, 17, and 18.

4. Conclusion of a material agreement and granting loan surety.

On 5 May 2015, the Management Board of Integer.pl SA with its registered office in Kraków (further referred to as the "Issuer") announced that InPost Canada Inc. with its registered office in Toronto, Canada (registered in the Register under the number 8807973), a subsidiary of the Issuer (further referred to as "InPost Canada"), a borrower, and Bank Gospodarstwa Krajowego, with its registered office in Warsaw, acting on the basis of the Act of 14 March 2003 on Bank Gospodarstwa Krajowego (Journal of Laws of 2014, item 510, as amended) and the Articles of Association of Bank Gospodarstwa Krajowego given under the Regulation of the Minister of Treasury of 11 May 2010 on the Articles of Association of Bank Gospodarstwa Krajowego (Journal of Laws No. 81, pos. 535, as amended), (further referred to as "BGK"), a lender, concluded loan agreements for a total amount: USD 36.7 million. The agreement covered loan A intended to finance an export contract by InPost Canada, concluded between InPost Canada and the Issuer, and loan B intended to finance certain operating expenses of InPost Canada.

Loan A, worth USD 31 700 000.00, was concluded for the period until 31 December 2023, and loan B, worth USD 5 000 000.00, for the period until 31 December 2017. Interest rates on both loans is equal to quarterly LIBOR plus a margin of BGK. In case InPost Canada violates loan agreements, interest surcharge will be increased by 2% compared to contractual interest. Security set for the BGK's claims are standard for this type of transaction and include: collateral on assets of InPost Canada established under Canadian law, surety provided by the Issuer ND the subordination agreement described below. Moreover, the loan agreement includes the terms for using both loans which are standard for this type of financing, and imposes on InPost Canada the obligation to maintain specific financial indexes, i.e. debt servicing index and the rate of maximum financial leverage in InPost Canada.

On 5 May 2015, as the collateral for loans of InPost Canada Inc., the Issuer concluded a surety contract for liabilities of InPost Canada under the loan agreement with BGK. The maximum amount of surety, expressed in US dollars at current exchange rate of 5 May 2015, amounted to PLN 181 025 000.00. The maximum term of the surety is until 31 December 2026.

An additional security for loans is the subordination agreement. It was concluded on 5 May 2015 between, among others, the Issuer, as a subordinated creditor, InPost Canada Inc., as the borrower, and BGK. The agreement provides for the repayment of liabilities of the Issuer to InPost Canada subject to the repayment of liabilities of InPost Canada under the aforementioned loan agreement. In addition, the Issuer agreed to provide InPost Canada with continued financial support by allowing InPost Canada to use cash (in the form of shareholder loans or share capital increase) for a total amount not exceeding USD 18 million. The Issuer will be entitled to demand repayment of any debt from InPost Canada after InPost Canada repaid its debt under the loan agreement. In addition to the standard subordination of payment of current liabilities of the Issuer to InPost Canada, the Issuer undertook to support financially InPost Canada during the period of credit obligations to BGK, i.e. in a period not longer than until 31 December 2026.

Based on its value of PLN 133 million, the agreement was considered material (the value of currency being equal to USD 36.7 million according to the rate published for a given currency by the National Bank of Poland as at 5 may 2015).

(17)

5. Conclusion of a material agreement. On 5 May 2015, Integer.pl SA (the "Issuer") announced that:

 the Issuer,

 easyPack Sp. z o.o. with its registered office in Kraków (entered in the Register of Entrepreneurs of the National Court Register kept by the District Court for Kraków-Śródmieście in Kraków, 11th Commercial Division of the National Court Register, under KRS number 0000418380), a subsidiary of the Issuer (further referred to as "EasyPack");

 InPost Paczkomaty Sp. z o.o. with its registered office in Kraków (entered in the Register of Entrepreneurs of the National Court Register kept by the District Court for Kraków-Śródmieście in Kraków, 11th Commercial Division of the National Court Register, under KRS number 0000255841), a subsidiary of the Issuer (further referred to as "Inpost Paczkomaty");

 TEMPLETON EMERGING MARKETS STRATEGIC FUND IV, LDC, an investment fund with its registered office in Mourant Ozannes Corporate Services (Cayman) Limited, Harbour Centre, 42 North Church Street, PO Box 1348, Grand Cayman, KY-1-1108, Cayman Islands (further " TSEMF IV"),

 PZU closed-end investment fund of non-public assets BIS 2 with its registered office in Warsaw (entered in the Register of Investment Funds kept by the Regional Court in Warsaw, 7th Civil Registry under number RFi 813), represented by TFI PZU SA, with its registered office in Warsaw (entered into the Register of Entrepreneurs of the National Court Register by the District Court for the Capital City 12th Commercial Division of the National Court Register, under number 0000019102) (further "PZU FIZAN BIS 2"), and

 Asterina Investments S.a.r.l. with its registered office in Luxembourg (entered in the commercial register kept in Luxembourg under number B 168119), an entity of the PineBridge Fund Group (further referred to as "Pinebridge") concluded investment and shareholders agreement, setting out the principles of co-investment partners in EasyPack, including (i) the manner of investment by the Issuer, TSEMF IV and PZU FIZAN BIS 2, (ii) mutual rights and obligations of partners of EasyPack, and (iii) the exit from investments by shareholders of EasyPack.

On the basis of the above-mentioned agreement, the Issuer agreed to make contributions in kind and in cash in the total amount of EUR 54.7 million, whereas TSEMF IV and PZU FIZAN BIS 2 pledged to bring their cash contributions totalling EUR 27 million. Payment made by each of the partners to the share capital of Easypack are to be made in two equal instalments upon the fulfilment of several conditions precedent.

The agreement provides for cash contribution described above to be made after meeting the following conditions precedent: (i) the Issuer will make contribution in kind to EasyPack, (ii) the Issuer will transfer to EasyPack its rights and obligations arising from joint venture agreements with the partners in easyPack Plus Self Storage LLC and InPost Canada Inc, (iii) the Issuer will obtain and provide certificates for EasyPack of confirming no tax arrears or social security contributions arrears. Based on its value of PLN 328 262 430.00, the agreement was considered material (the value of currency calculated according to the average exchange rate published for a given currency by the National Bank of Poland, applicable as at the date of the agreement conclusion), being equal to EUR 81.7 million.

(18)

4. Selected financial data disclosed in the condensed consolidated quarterly financial statements and the condensed separate quarterly financial statements translated to EUR.

SELECTED

CONSOLIDATED

DATA FOR

THE FIRST QUARTER OF

2015 AND 2014

in PLN '000 in EUR '000 SELECTED FINANCIAL DATA containing basic items of the condensed

consolidated financial statements for the first quarter

Period from 1 January to 31 March 2015 Period from 1 January to 31 March 2014 Period from 1 January to 31 March 2015 Period from 1 January to 31 March 2014

SELECTED FINANCIAL DATA FROM THE CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Net revenue from sales 153 459 121 234 36 988 28 938

Operating profit /loss (4 727) 2 508 (1 139) 599

Profit / loss before tax _{(10 037)} _{1 709} _{(2 419)} ₄₀₈

Net profit/loss _{3 306} _{(1 408)} ₇₉₇ ₍₃₃₆₎

SELECTED FINANCIAL DATA FROM THE CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

Net cash flows from operating activities 50 947 (29 672) 12 280 (7 083) Net cash flows from investing activities _{(85 794)} _{(68 630)} _{(20 679)} _{(16 382)}

Net cash flows from financing activities ₁₃₂ _{73 664} ₃₂ _{17 583}

SELECTED FINANCIAL DATA FROM THE CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at As at As at As at

31.03.2015 31.12.2014 31.03.2015 31.12.2014

Total assets (end of quarter and end of 2014) 1 246 529 1 209 192 304 849 283 695 Long-term liabilities (end of quarter and end of 2014) _{56 181} _{75 257} _{13 740} _{17 656} Short-term liabilities (end of quarter and end of 2014) _{402 895} _{344 271} _{98 531} _{80 771} Equity (end of quarter and end of 201) _{787 453} _{789 664} _{192 578} _{185 267}

Share capital _{7 764} _{7 764} _{1 899} _{1 822}

Number of shares / Weighted average number of shares in the period: 7 764 217 6 832 578 7 764 217 6 832 578

Profit/Loss per share in the period: 0.43 (0.21) 0.10 (0.05)

Profit / loss 1.04 0.32 0.25 1.32

Book value per share: 101.42 115.57 24.80 27.12

Consolidated items in the financial statements:

Q1 2015 Q1 2014 Change in PLN '000

Consolidated net revenue from sales _{153 459} _{121 234} _{32 225}

Consolidated net profit/loss _{3 306} _{(1 408)} _{4 714}

Amortisation and depreciation _{16 146} _{7 252} _{8 894}

Operating profit / loss (EBIT) _{(4 727)} _{2 508} _{(7 235)}

(19)

In the current period, the income of Integer.pl SA Capital Group increased by over 26% compared to the same period of the previous year, mainly due to the growth of postal business and the popularity of Paczkomaty™. With the implementation of the court contract in 2014, and thus growth of the network of service points, the Group is able to provide services throughout the country. This gave the Group the possibility of participating in tenders so far out of its reach. In the first quarter of 2015, the Group generated net profit of more than PLN 3 million and a positive EBITDA at the level of PLN 11 million, i.e. 17% more than in Q1 2014.

The decrease in non-current liabilities with a simultaneous increase in liabilities is primarily due to the reclassification of bonds of Integer.pl SA maturing in February 2016 to short-term liabilities, and the recognition of the received leaseback as loans as at 31 March 2015.

The sales structure is shown in the following tables:

3-month period ended 31-03-2015 12-month period ended 31-12-2014 3-month period ended 31-03-2014

Sale of goods and products 8 060 24 614 6 983

Sale of services 142 839 565 456 111 913

Other 2 560 13 998 2 338

Total sales revenue: 153 459 604 068 121 234

3-month period ended 31-03-2015 12-month period ended 31-12-2014 3-month period ended 31-03-2014

Postal services, including: 116 526 396 022 108 922

- court contract 52 215 188 670 47 968

Parcel services, rental of boxes, other

parcel machine services (licenses) 26 101 75 237 8 697

Sale of equipment for the transmission of goods 7 504 118 277 1 277

Other services 3 328 14 532 2 338

Total sales revenue: 153 459 604 068 121 234

In Q1 2015, by concluding new contracts and conducting marketing activities, Integer.pl SA Capital Group reported further increase in volumes of the core business areas of services. This resulted in an increase in sales in Q1 2015 as compared to the Q4 2014 and for the comparable period. The scale and dynamics of growth, as divided by specific products, is described in subsequent statements.

The growth of sales of postal operations by product is presented in the table below:

No. _Product: _{% increase in volumes Q1 2015 vs. Q1 2014}

1. Standard and express mail: 83%

including court contract 14%

2. Registered mail: 24%

3. With confirmation of receipt 9%

4. Smart Courier: 96%

Total products: 51%

(20)

The increase in volumes was also recorded in the e-commerce segment. Strengthening the market position and attracting new customers in Q1 2015 increased the sales growth compared to the comparative period. Higher sales volumes were recorded both in foreign markets (up by 59%) and in the Polish market (up by 81%). In the domestic market, a significant share of the growing e-commerce segment resulted from concluding contract with Allegro. The growth rate of number of packages and letters sent through Allegro is shown in the following table:

ALLEGRO December 2014 January 2015 February 2015 March 2015

Growth rate: 437% 4% 25% 47%

The volume of packages delivered through Paczkomaty™ also increased. The growth rate in individual months of Q1 2015 is shown below as compared to the corresponding periods of Q1 2014.

SELECTED

SEPARATE

DATA FOR

THE FIRST QUARTER OF

2015 AND 2014

in PLN '000 in EUR '000 SELECTED FINANCIAL DATA containing basic items of the condensed

separate financial statements for the first quarter

Period from 1 January to 31 March 2015 Period from 1 January to 31 March 2014 Period from 1 January to 31 March 2015 Period from 1 January to 31 March 2014

SELECTED FINANCIAL DATA FROM THE CONDENSED SEPARATE STATEMENT OF COMPREHENSIVE INCOME

Net revenue from sales 18 556 76 376 4 473 18 231

Operating profit 621 (5 772) 150 (1 378)

Profit before tax ₁₀₇ _{(6 042)} ₂₆ _{(1 442)}

Net profit/loss ₍₇₇₈₎ _{(4 972)} ₍₁₈₈₎ _{(1 187)}

y / y growth 74% y / y growth 74%

(21)

Net cash flows from operating activities (28 191) (24 848) (6 795) (5 931)

Net cash flows from investing activities _{6 217} _{(42 047)} _{1 498} _{(10 037)}

Net cash flows from financing activities _{(8 102)} _{67 495} _{(1 953)} _{16 111} SELECTED FINANCIAL DATA FROM THE CONDENSED SEPARATE STATEMENT OF FINANCIAL POSITION

As at As at As at As at

31.03.2015 31.12.2014 31.03.2015 31.12.2014

Total assets (end of quarter and end of 2014) 838 330 831 301 205 021 195 036 Long-term liabilities (end of quarter and end of 2014) _{11 368} _{41 749} _{2 780} _{9 795} Short-term liabilities (end of quarter and end of 2014) _{278 100} _{239 912} _{68 012} _{56 287} Equity (end of quarter and end of 2014) _{548 862} _{549 640} _{134 229} _{128 954}

Share capital _{7 764} _{7 764} _{1 899} _{1 822}

Number of shares / Weighted average number of shares in the period: 7 764 217 6 832 578 7 764 217 6 832 578

Profit/Loss per share in the period: (0.10) (0.73) (0.02) (0.17)

Book value per share: 70.69 80.44 17.29 18.87

In Q1 2015, net sales fell by PLN 58 million as compared to the corresponding previous year. This resulted mainly from a shift of the project Canada, in connection with the process of obtaining financing for this project. Despite lower sales, Integer.pl SA achieved a positive operating result and pre-tax and a positive EBITDA in the amount of more than PLN 2 million. It is the result of cost rationalization policy, the company's operations and increase revenues from post-warranty maintenance services.

The decrease in non-current liabilities with a simultaneous increase in liabilities is primarily due to the reclassification of bonds maturing in February 2016 to short-term liabilities.

Cash flows from operating activities in Q1 2015 remained at a similar level as in the Q1 last year. A significant decrease in cash flows from financing activities resulted from the fact that in the comparable period of 2014 the company had issued bonds in the amount of PLN 75 million.

Separate items of the financial statements: Q1 Growth rate

2015 2014 in PLN '000 %

Net revenue from sales _{18 556} _{76 376} _{(57 820)} _(75.7)

Net loss ₍₇₇₈₎ _{(4 972)} _{4 194} _-

Amortisation and depreciation _{1 696} _{3 154} _{(1 458)} _(46.2)

Operating profit (EBIT) ₆₂₁ _{(5 772)} _{6 393} _-

(22)

5. A list of shareholders holding, directly or indirectly through the subsidiaries, 5% of the total number of voting rights at the General Meeting of Shareholders as at the date of submission of this report and changes in the shareholding structure with respect to qualifying shareholdings of the Issuer's since the date of submission of the previous quarterly report.

Item

no. Shareholder:

As at 31 December 2014 _{As at 31 March 2015} _{As at the report issue date:}

Number of shares % of the total number of shares and voting rights at the Annual General Meeting Number of shares % of the total number of shares and voting rights at the Annual General Meeting Number of shares % of the total number of shares and votes at the Annual General Meeting 1. _{A&R Investments Ltd (*):} 2 318 892 29.87% 2 326 584 29.97% 2 328 384 29.99% 2. _{L.S.S. Holdings Limited (**):} 418 723 5.39% 418 723 5.39% 418 723 5.39%

3. Generali OFE (OFE: Open

Pension Fund)

675 090 8.69% 675 090 8.69% 675 090 8.69%

4. _{Aegon OFE} 396 523 5.11% 396 523 5.11% 396 523 5.11%

5. _{Other Shareholders:} 3 954 989 50.94% 3 947 297 50.84% 3 945 497 50.82%

Total number of shares: 7 764 217 100.00% 7 764 217 100.00% 7 764 217 100.00%

(*) company controlled by Mr. Rafał Brzoska - President of the Management Board of Integer.pl SA. (**) company controlled by Mr. Krzysztof Kołpa - Vice-President of the Management Board of Integer.pl SA.

From the end of Q1 2015 until the publication date of this consolidated report QSr for Q1 2015 there were no changes in the shareholding structure with respect to qualifying shareholdings of the Issuer.

6. Changes in the ownership structure in Q1 2015 and until the date of this report.

Trading date: Shareholder: Number of shares

purchased:

Number of

shares sold: Average price:

12.01.2015 Rafał Brzoska - President of the Management Board 1 100 - PLN 154.47

16.01.2015 Rafał Brzoska - President of the Management Board 600 - PLN 159.45

7. The holding of the Issuer's shares or rights to shares by members of the Issuer's Management Board or Supervisory Board as at the date of submission of this quarterly report, including any changes thereof since the date of submission of the previous quarterly report, separately for each such shareholder.

(23)

Item

no. Shareholder:

As at 31 December 2014 As at 31 March 2015 As at the report issue date:

Number of shares % of the total number of shares and voting rights at the Annual General Meeting Number of shares % of the total number of shares and voting rights at the Annual General Meeting Number of shares % of the total number of shares and voting rights at the General Meeting of Shareholders Management Board: 1. A&R Investments Ltd. – President (*) 2 318 892 29.87% 2 326 584 29.97% 2 328 384 29.99%

2. L.S.S. Holdings Limited - Vice

President (**) 418 723 5.39% 418 723 5.39% 418 723 5.39% Supervisory Board:

1. Anna Izydorek-Brzoska – Chair

(***) 27 500 0.35% 27 500 0.35% 27 500 0.35%

(*) company controlled by Mr. Rafał Brzoska (**) company controlled by Mr. Krzysztof Kołpa - Vice-President (***) Chair of the Supervisory Board of Integer.pl SA.

8. Proceedings pending before a court, an arbitration body or a public authority, including information about single proceedings relating to the liabilities or receivables of the Issuer or its subsidiary, with a value of at least 10% of the Issuer's equity, or two or more proceedings related to the liabilities and receivables with an aggregate value of at least 10% of the Issuer's equity.

In Q1 2015 no court proceedings relating to liabilities with a total value of at least 10% of the equity of Integer.pl SA were pending against the Issuer or its subsidiaries.

9. Information on one or more related-party transactions entered into by the Issuer or any of its subsidiaries, where such transactions are considered material, whether individually or collectively, entered into otherwise than on arm's length basis.

Since the beginning of 2015, the Capital Group companies have not entered into one or more related-party transactions that are considered material, whether individually or collectively, other than typical or routine transactions entered into on arm's length basis, whose nature and conditions do not arise from the current operating activities of the Group companies. The related-party transactions are summarised in the notes to the separate and consolidated financial statements for Q1 2015.

10. Information about guarantees or sureties for the repayment of borrowings granted by the Issuer or its subsidiaries to a single entity or a subsidiary of that entity, where a total value of the existing guarantees or sureties is equivalent to at least 10% of the Issuer's equity.

(24)

In Q1 2015, the Issuer did not provide any sureties or guarantees whose value was at least 10% of the Issuer's equity. After the end of Q1, on 5 May 2015, Integer.pl SA signed a surety agreement for the obligations of its subsidiary InPost Canada Inc. Detailed information on the surety was published in the current report 22/2015.

11. Other information which, according to the Issuer, is essential for the assessment of the Issuer's human resources, assets, financial position, results of the operations and any changes thereof as well as any information essential for the assessment of the the Issuer's ability to perform obligations.

Growth of the domestic and international e-commerce sector

The development of the parcel machine services in foreign markets has an impact on the human resources, assets, and financial position of the companies in the Integer.pl SA Capital Group. An increase in the number of Paczkomaty™ enables the company to acquire new customers, thus contributing to increased return on investment offsetting the expenditures incurred.

Activity in the parcel machine services is based on an open business model in which revenues are generated due to: providing technology to local post offices and courier companies related to the of e-commerce industry, sales of Paczkomaty™ and leasing of parcel machine boxes as well as construction of own network of Paczkomaty™.

Changes in the postal market.

Changes in legislation led to the success of independent operators which include, among others, the award of tender to Polska Grupa Pocztowa SA for the provision of services to the organizational units of common courts. Since last year, InPost SA together with PGP SA has been implementing the service of handling the correspondence of common courts and prosecutors' offices - the two-year contract is worth nearly PLN 500 million and covers 100 million shipments. Consistent liberalization of Polish postal market has led to consecutive awards of tenders, organized by large companies and key public institutions, to independent postal operators. In 2014, InPost SA was awarded tenders to handle correspondence of the government's Shared Services Centre worth PLN 33 million and of Farmers' Social Security Fund (KRUS) - worth PLN nearly 23 million.

Financial and insurance services.

InPost Finance Sp. z o.o. is a national payment institution. The Polish Financial Supervision Authority grants a licence to operate as a national payment institution only to institutions that are able to provide a sufficiently high level of security, meet a number of legal, financial and technical conditions, and have the necessary experience and education, as appropriate to the type and scope of operations1_{. This licence enables the company to provide, among others, full cash service in treasury} charges. To date, relatively few institutions have been able to provide the service; they were mainly the banks.

Furthermore, events that occurred during Q1 2015 and until the date of publication of this report, such as the conclusion of significant contracts or change in the Terms of Issue of Bonds of the parent company described in section 3 of this report,

(25)

may serve as important information for reliable evaluation of the personnel, assets, and financial situation of the Issuer and its Group.

12. Factors which, in the Issuer's opinion, will have an impact on the Issuer's and the Group's financial results, at least in the coming quarter

The companies of Integer.pl SA Capital Group conduct business activities in the areas of postal and courier services, parcel, finance and insurance and manufacturing Paczkomaty™.

Postal and courier services.

InPost SA is a leader among independent postal operators operating in Poland. At the end of Q1 2015, the company had 8 300 Customer Service Points in each municipality across the country. The company's operating activities allow to assume good prospects in a long-term perspective with regard to the company's financial results. The future results of Integer.pl SA will be affected by the following factors:

 potential new contracts under public procurement procedures with central and local government institutions and new business partners,

 implementation of the ongoing contracts,

 increase in sale of high-margin services (registered and express mail and money transfers),

 increase in sale of financial services (by opening agency and franchise branches),

 expansion of the product portfolio of companies,

 development and expansion of portfolio of customers of hybrid post service, combining traditional postal services with the functionalities of electronic mail and product portfolio of companies,

 expansion of the network of Customer Service Points,

 conducting IPO of shares and their introduction to the main market of the Stock Exchange in Warsaw.

Expansion of Paczkomaty™ including:

 further launching of InPost parcel machines,

 development of InPost parcel machines network on foreign markets, Financial and insurance services.

(26)

 implementing the existing contracts for public institutions and local governments and to conclude new contracts with such institutions, mainly for money orders,

 expanding networks of cash points and to provide cash services to Tax Offices and public institutions,

 extending the product portfolio and the range of new services,

 increasing the sales of insurance products; expanding cooperation with the existing partners and entering into other forms of cooperation with new partners,

 implementing and developing new innovative services: mobile payments and outsourcing of e-documents, assuming an increase in the number of customers,

13. Notes on the seasonal or cyclical nature of the Group's activity in Q1 2015.

Due to the nature of conducted operations, the seasonality in case of the companies of Integer.pl SA Capital Group is not significant. However, due to an increase in sales of services via the Internet and parcel machines, the seasonality occurs in the holiday season, when the number of shipments noticeably increases.

14. Factors and events, notably of extraordinary nature, which have a significant impact on the recorded consolidated financial results.

In Q1 2015, there were no events, particularly of an unusual nature, that had an impact on the financial results.

15. A brief description of the Issuer's achievements or failures in Q1 2015, including the associated most significant events.

 January 2015

The companies of InPost Finance Sp. z o.o. and InPost SA expand their offer with financial and logistical solution by which delivery of contract and payment of cash are implemented within one service, "Umowa Gotówka Plus". It is a development of a popular method of Smart Courier, in which the courier delivers agreement to the recipient and in return the signed version is provided to the sender. From now on, thanks to the new service, the employee of InPost will be also able to withdraw funds immediately to the person who signs the document.

Subsidiary of easyPack Sp. z o.o.- Locker InPost Italia Srl. started cooperation with IBS.it - the largest online bookstore in Italy. In result, customers of IBS.it will be able to order their dream book and pick it up conveniently in one of Paczkomaty™ currently operating on the territory of that country.

Polska Grupa Pocztowa SA signed with P4 Sp. z o.o. - owner of the PLAY brand - a correspondence agreement for using Electronic Confirmation of Acceptance (EPO). This will speed up the delivery of correspondence which requires acknowledgement of receipt, automate and simplify handling of mail, as well as reduce the cost of the entire process.