Snaige AB

Interim / Quarterly Report • Sep 30, 2022

30 September, 2022

SNAIGĖ AB CONFIRMATION OF RESPONSIBLE PERSONS

Following the Article No. 22 of the Law on Securities of the Republic of Lithuania and Rules on Preparation and Submission of Periodic and Additional Information of the Bank of Lithuania, we, Mindaugas Sologubas, CEO of Snaigė AB and Vytautas Adomaitis, Chief of the Accounting and Finance Department of Snaige AB hereby confirm that, to the best of our knowledge, the attached unaudited interim consolidated Snaige AB, financial statements for the six months period ended 30 June 2022, prepared in accordance with the International Financial Reporting Standards as adopted by the European Union, reflects the reality correctly and fairly shows issuer's assets, liabilities, financial position, profit or loss and cash flow of Snaige AB.

As well, we confirm that Consolidated Interim Report fairly presents the review of issuer's business development and business activities.

Mindaugas Sologubas Managing Director

Vytautas Adomaitis Chief of the Accounting and Finance Department

SNAIGĖ AB

CONSOLIDATED INTERIM FINANCIAL STATEMENTS AND CONSOLIDATED INTERIM REPORT FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2022 (UNAUDITED)

CONTENTS

ENERAL PROVISIONS
VANCIAL SI AI US
ANATORY NOTES
CONSOLIDATED INTERIM REPORT

I. GENERAL PROVISIONS

1. Accounting period of the report

The report has been issued for the period of six months ended 30 June 2022.

2. The basic data about the issuer

The name of the company - SNAIGE PLC (hereinafter referred to as the "Company")

Authorised capital - one Company's share is equal to EUR 0.17 and to establish that the Company's authorized capital is equal to EUR 6,735,807.

Address - Pramonės str. 6, LT-62175 Alytus

Phone - (+370 315) 56 206

Fax - (+370 315) 56 207

E-mail - snaige@snaige.It

Internet address - http://www.snaige.lt

Legal organisation status - legal entity, public limited company

Registered as an enterprise on 1 December 1992 in the Municipality Administration of Alytus; registration number AB 92-119; enterprise register code 249664610. The latest Statute of Snaige AB was registered on 19 August 2020 in Register of Legal Entities of the Republic of Lithuania.

3. Information with regard to the location and time provided for introduction of the report and the accompanying documents; name of the mass media

The report is available in the Accounting and Finance Department of Snaige AB at Pramones str. 6, Alytus, on the days of I - IV from 7.30 to 16.30, and V from 7.30 to 14.00.

The mass media - publication issued by the Centre of Registers, daily paper "Kauno diena".

II. FINANCIAL STATUS

Consolidated Statement of Profit or Loss and Other Comprehensive Income

Ref. No.	ITEMS	Notes	01-01-2022 30-06-2022	01-04-2022 30-06-2092	01-01-2021 30-06-2021	01-04-2021 30-06-2021
1.	Sales	3	11,755	6,138	16,569	9,575
2.	Cost of sales	4	(12,132)	(6,402)	(15,037)	(8,601)
3.	Real value change of biological property
ব	GROSS PROFIT (LOSS)		(377)	(264)	1,532	974
5.	Selling expenses		(854)	(372)	(1,278)	(730)
6.	General and administrative expenses		(1,448)	(889)	(899)	(554)
7.	Results of other activity	5,7	41	22	6	(10)
8.	Investments incomes into the shares of patronise, patronized and associated companies
9	Incomes of other long-term investments and loans	8
10.	Incomes of other interest or similar incomes	8	1	3	2	(10)
11.	Value decrease of financial property and short-term investments
12.	Costs of interest and other similar costs	9	(276)	(135)	(234)	(118)
13.	PROFIT (LOSS) BEFORE INCOME TAX		(2,913)	(1,635)	(871)	(448)
14.	Income tax				(21)	(21)
15.	NET PROFIT (LOSS) BEFORE NONCONTROLLING INTEREST		(2,913)	(1,635)	(892)	(469)
16.	Non-controlling interest
17.	Other comprehensive income		520	261	485	245
18.	TOTAL COMPREHENSIVE INCOME		(2,393)	(1,374)	(407)	(224)

Managing Director

Mindaugas Sologubas

Chief of the Accounting and Finance Department

Vytautas Adomaitis

Consolidated Statement of Financial Position

Ref. No.	ASSETS	Notes	As at 30 June 2022	As at 31 December 2021
	ASSETS
A.	Non-current assets		14,575	15,042
1.	Intangible assets	10	1,587	1,567
2.	Tangible assets	11	12,988	13,475
2.1.	Land
2.2.	Buildings and structures		5,124	5,236
2.3.	Machinery and equipment		5,328	5,878
2.4.	Vehicles and other property		828	951
2.5.	Right to leased assets		ರಿಕಿ	109
2.6.	Construction in progress and prepayments		1,609	1,301
3.	Financial assets	12	0	0
বাঁ	Other non-current assets		0	0
ni	Current assets		9,650	11,261
1.	Inventories	13	4,753	6,142
2.	Accounts receivable within one year		4,715	4,990
2.1.	Customers' debts	14	3,964	4,247
2.2.	Contracts assets
2.3.	Prepayments		614	493
2.4.	Other amounts receivable	15	137	250
3.	Short-term investments
বাঁ	Cash and cash equivalents	16	182	129
C.	Accrued income and prepaid expenses		0	0
	Total assets		24,225	26,303

(Continued on the next page)

Ref. No.	ASSERS	Notes	As at 30 June 2022	As at 31 December 2021
	EQUITY AND LIABILITIES
D.	Equity		735	3,570
1.	Capital		6,736	6,736
1.1.	Authorized (subscribed) share capital		6,736	6,736
1.2.	Signed unpaid capital (-)
1.3.	Own shares(-)
2.	Shares premiums
3.	Revaluation reserve		7,233	7,675
বা	Reserves	18	718	718
5.	Retained earnings (loss)		(13,900)	(11,507)
6.	Influence of currency exchange rate		(52)	(52)
11.	Non-controlling interest		0	0
E.	Grants, subsidies	19	261	2:39
F.	Provisions		1,961	2,072
1.	Pensions provisions and similar provisions		293	326
2.	Taxes provisions		1,550	1,628
3.	Other provisions	20	118	118
G.	Accounts payable and liabilities		21,268	20,372
1.	Accounts payable after one year and other non- current liabilities	21	8,005	8,005
1.1.	Debts for credit institutions		8,005	8,005
1.2.	Other non-current liabilities
2.	Account payable within one year and current liabilities		13,263	12,367
2.1.	Liabilities of debts		9	18
2.2.	Debts for credit institutions	21	2,469	2,484
2.3.	Received prepayments		224	ರಿತ
2.4.	Debts to suppliers		9,134	8,204
2.5.	Short - term lease obligations		ට විට	111
2.6.	Payable sums acc.to bills and cheque
2.7.	Contracts liabilities
2.8.	Payable sums for associated companies
2.9.	Profit tax payment obligations
2.10.	Obligations related to work relations		735	893
2.11.	Other current liabilities		593	564
H.	Accrued charges and deferred income
	Total equity and liabilities		24,225	26,303

Managing Director

Mindaugas Sologubas

Chief of the Accounting and Finance Department

Vytautas Adomaitis

Consolidated Statement of Cash Flow

Ref. No.	Assets	30-06-2022	30-06-2021
-	Cash flows from the key operations
1.1	Net result before taxes	(2,913)	(892)
1.2	Depreciation and amortization expenses	944	998
1.3	(Amortisation) of grants	(28)	(172)
1.4	Result from disposal of non-current assets	(1)	(17)
1.5	Write-off of non-current assets	1
1.6	Write-off of inventories	12
1.7	Depreciation of receivables
1.8	Loss on currency futures
1.9	Change in provision for guarantee repair	(11)	18
1.10	Recovery of devaluation of trade receivables and other provisions	217	(118)
1.11	Influence of foreign currency exchange rate change
1.12	Financial income (interest income)	(1)	(2)
1.13	Financial expenses (interest expenses)	276	234
1.14	Income tax expense (income)
	Cash flows from the key operations until decrease (increase) in working capital	(1,504)	40
11.1	Change in receivables and other debts liabilities (increase)	(17)	(1,858)
11.2	Change in inventories (increase)	1,387	(1,022)
11.3	Change in trade and other payables (decrease)	819	2,688
	Cash flows from the main activities	685	(143)
11.1	Interest received
III.2	Interest paid
11.3	Income tax paid
	Net cash flows from the key operations	635	(143)
IV.	Cash flows from (to) investing activities
IV.1	Acquisition of tangible non-current assets	(36)	(164)
IV.2	Capitalization of intangible non-current assets		(153)
IV.3	Proceed from disposal of non-current assets	2	38
IV.4	Loans granted
IV.5	Loans regained		89
IV.6	Advance payments	(466)
IV.7	Interest received		26
IV.8	Financial investment assets
	Net cash flows from the investing activities	(500)	(164)

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus, Lithuania CONSOLIDATED INTERIM FINANCIAL STATEMENTS AND CONSOLIDATED INTERIM REPORT FOR SIX MONTHS PERIOD ENDED 30 JUNE 2022

(All amounts are in EUR thousand unless otherwise stated)

V.	Cash flows from the financial activities	(132)	446
V.1	Cash flows related to the shareholders of the company
V.1.1	Issue of shares
V.1.2	Shareholders' contributions for covering losses
V.1.3	Sale of own shares
V.1.4	Payment of dividends
V.2	Cash flows arising from other financing sources
V.2.1	Grants received		115
V21.1	Proceeds from non-current borrowings
V.2.1.2	Factoring	52	865
V.2.1.3	Repayment of borrowings	(68)	(265)
V.2.2	Finance lease received
V.2.2.1	Payments of leasing (finance lease) liabilities	(9)	(33)
V.3	Other decreases in the cash flows from financial activities	(10)
V.4.	Interest paid	(97)	(236)
	Net cash flows from the financial activities	(132)	446
VI.	Cash flows from extraordinary items
VI.1.	Increase in cash flows from extraordinary items
VI.2.	Decrease in cash flows from extraordinary items
VII.	The influence of exchange rates adjustments on the balance of cash and cash equivalents
VIII.	Net increase (decrease) in cash flows	53	139

Managing Director

IX.

x.

Mindaugas Sologubas Vytautas Adomaitis

129

182

309

448

Chief of the Accounting and Finance Department

Cash and cash equivalents at the beginning of period

| Cash and cash equivalents at the end of period

CONSOLIDATED INTERIM FINANCIAL STATEMENTS AND CONSOLIDATED INTERIM REPORT FOR SIX MONTHS PERIOD ENDED 30 JUNE 2022 SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus Lithuania (All amounts are in EUR thousand unless otherwise stated)

Consolidated Statement of Changes in Equity

	Paid up	Share	Own	Leg	al reserves			Other reserves		Retained		Minority
	authoris capital ed	premi um	shares (-)	Compulsor A	own shares acquiring For	social needs For	Other	exchange Currency reserve	Revaluation reserve	earnings (losses)	TOTAL	shareho lders	TOTAL
Recalculated balance as at 31 December 2020	6.736	0	0	991	0	0	0	(54)	8,521	(10,653)	5,541	0	5,541
expenses for the I-st to II-nd quarter Total recognized revenue and 2021										(892)	(892)		(892)
Formed reserves				(273)						273
Reduction of authorized capital											0	0
Other changes								ﺮ	(412)	ﺎ	(410)	0	(410)
Other comprehensive income										485	4.85		485
Balance as at 30 June 2021	6,736	0	0	718	0	0	0	(53)	8,109	(10.786)	4.724	0	4.724
expenses from III-rd to IV-th quarter Total recognized revenue and 2021										(1,231)	(1,231)	0	(1,231)
Transfers from reserves
Reduction of authorized capital											0	0
Other changes								ﺮ			ﺮ		1
Other comprehensive income									(434)	510	76		76
Balance as at 31 December 2021	6.736	0	0	718	0	0	0	(52)	7,675	(11,507)	3.570	0	3,570
expenses for the I-st to II-nd quarter Total recognized revenue and 2022										(2,913)	(2,913)		(2,913)
Formed reserves
Reduction of authorized capital											0	0
Other changes									(442)		(442)	0	(442)
Other comprehensive income										520	520		520
Balance as at 30 June 2022	6,736	0	0	18 1	0	0	0	(52)	7,233	(13,900)	735	0	735
Managing Director						Mindaugas Sologubas
Chief of the Accounting and Finance Department				220 ANU		Vytautas Adomaitis

page 9

III. EXPLANATORY NOTES

1. Basic information

Snaige AB (hereinafter the "Company") is a public company registered in the Republic of Lithuania. The address of its registered office is as follows:

Pramonės str. 6, Alytus, Lithuania.

The Company is engaged in production of refrigerators, freezers and metal products. The Company was registered on 1 April 1963. The Company's shares are traded on the Baltic Secondary List of the NASDAQ Vilnius stock exchange.

Main shareholders of Snaige AB were:

		30 June 2022		31 December 2021
	Number of shares owned	Share of total capital, %	Number of shares owned	Share of total capital, %
Sekenora Holdings Limited	36,096,193	91.10%	36.096.193	91.10%
Other shareholders	3.526.202	8.90%	3.526.202	8.90%
Total	39,622,395	100%	39.622.395	100%

All the shares of the Company are ordinary registered intangible shares with the par value of EUR 0.17 each and were fully paid as at 30 June 2022 and 31 December 2021.

As at 30 June 2022 and 31 December 2021, the Company did not hold its own shares.

The Group consisted of Snaige AB and the followings subsidiaries as at 30 June 2022 (hereinafter - the "Group"):

Company	Country	Percentage of the shares held by the Group	Profit (loss) for the reporting year	Shareholders' equity
Snaige-Ukraina TOB	Ukraine	99%		ব
Almecha UAB	Lithuania	100%	28	202

As at 30 June 2022, same as at 31 December 2021, the Board of the Company consist of four members. The board does not have Snaige AB representatives.

Snaige-Ukraina TOB (Kiev, Ukraine) was established in 2002. Since the acquisition in 2002, the Company holds 99% shares of this subsidiary. The subsidiary provides sales and marketing services in the Ukrainian market.

Almecha UAB (Alytus, Lithuania) was established in 2006. The main activities of the company are production of refrigerating components and equipment. The Company acquired 100% of the Company's shares.

At 30 June 2022, the number of employees of the Group was 446 (as at 31 December 2021 - 539).

2. Accounting principles

The principal accounting policies adopted in preparing the Group's financial statements are as follows:

2.1. Basis of preparation

These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs), as adopted by the European Union (hereinafter the "EU").

These financial statements are prepared on the historical cost basis.

2.2. Going concern

These financial statements for the 30 June 2022 have been prepared based on the assumption that the Group will be able to continue as a going concern for at least 12 months. The going concern is based on the following assumptions:

In order to finance working capital, the Company plans successful sales of finished products and to continue cooperation only with reliable partners. Debts to suppliers are planned to be reduced from free circulating funds.

In the opinion of the Company and Group management, the impact of the military conflict in Ukraine, which began at the end of February (Note 29) is significant but not critical. Although the trade of the Company's products in one of the largest markets was temporarily stopped due to this conflict, trade is being carried out again as of the report's release. New product groups and active actions of the company will offset the negative impact of the war in other markets. War-related sanctions do not apply to the Company or its managers or shareholders.

The Company's negative performance and related liquidity challenges due to rising raw materials and energy prices and declining consumption due to declining expectations in the war in Ukraine are temporary and the Group's management expect to overcome them with available resources. Therefore, not wanting to risk the future of a viable and potential Company, to ensure jobs and social guarantees for its employees, the management of the Company decided to initiate the restructuring process of the Company (note 30)

The management of the Company agrees that all those assumptions above could be influenced of significant uncertainties, which could raise doubts about Company's ability to continue operating, because of the disability to realize its property and to implement its commitments by carrying out its normal activities. However, despite all this the Company's management expects that the Company will have enough resources to continue operating in the near future. The Group has continued to adopt the going concern basis of accounting in preparing these financial statements.

2.3. Presentation currency

The Group's financial statements are presented in the currency of the European Union, the euro (EUR), which is the Company's functional and the Group's presentation currency. Each entity in the Group determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency. Transactions in foreign currencies are initially recorded at the foreign currency exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency rate of exchange ruling at the statement of financial position date. All differences are included in profit or loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as of the date of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition are treated as assets and liabilities of the foreign entity and translated at the rate of exchange ruling at the statement of financial position date.

The functional currency of a foreign entity Snaige-Ukrainian hryvnia (UAH). As at the reporting date, the assets and liabilities of this subsidiary are / were translated into the presentation currency of Snaigé AB (EUR) at the rate of exchange at the statement of financial position date and their items of the statement of profit or loss and other comprehensive income are translated at the average monthly exchange rates for the exchange differences arising on the translation are stated in other comprehensive income.

On disposal of a foreign entity, the deferred cumulative amount recognised in the shareholders' equity caption relating to that particular foreign operation is transferred to profit or loss.

The applicable exchange rates in relation to euro as at the 30 June 2022, and 31 December 2021, were as follows:

	30 June 2022	31 December 2021
UAH	31.07369	30.99338
USD	1.0517	1.1334

2.4. Principles of consolidation

The consolidated financial statements of the Group include Snaige AB and its subsidiaries. The financial statements of the subsidiaries are prepared for the same reporting year, using consistent accounting policies.

Subsidiaries are consolidated from which effective control is transferred to the Company and cease to be consolidated from the date on which control is transferred out of the Group. All intercompany transactions, balances and unrealised gains and losses on transactions among the Group companies have been eliminated. The equity and net result attributable to non-controlling interest are shown separately in the statement of financial position and profit or loss.

Acquisitions and disposals of non-controlling interest by the Group are accounted as equity transaction: the difference between the carrying value of the net assets acquired from/disposed to the non-controlling interests in the Group's financial statements and the acquisition price/proceeds from disposal is accounted directly in equity.

2.5. Intangible assets, except for goodwill

Intangible assets are measured initially at cost. Intangible assets are recognised if it is probable that future economic benefits that are attributable to the asset will flow to the Group and the cost of asset can be measured reliably. After initial recognition, intangible assets are measured at cost less accumulated amortisation and any accumulated impairment losses. Intangible assets are amortised on a straight-line basis over their estimated useful lives (1-8 years).

Research and development

Research costs are expensed as incurred. Development expenditure on individual projects is an intangible asset when the Group and the Company can demonstrate the technical feasibility of completing the intangible asset so that it will be available for use or sale, their ability to use or sell the asset so that the asset will generate future economic benefits, the availability of resources to complete the asset and the ability to measure reliably the expenditure during development.

Following initial recognition of the development expenditure as an asset, the cost model is applied requiring the asset to be carried at cost less any accumulated anortisation and accumulated impairment losses. Amortisation of the asset begins when development is complete and the asset is available for use.

Licenses

Amounts paid for licences are capitalised and amortised over their validity period.

Software

The costs of acquisition of new software are capitalised and treated as an intangible asset if these costs are not an integral part of the related hardware. Software is amortised over a period not exceeding 3 years.

Costs incurred in order to restore or maintain the future economic benefits that the Group and the Company expect from the originally assessed standard of performance of existing software systems are recognised as an expense when the restoration or maintenance work is carried out

2.6. Tangible non-current assets

Property, plant and equipment are assets that are controlled by the Group and the Company, which are expected to generate economic benefits in the future periods with the useful life exceeding one year, and which acquisition (manufacturing) costs could be reliably measured. Property, plant and equipment is stated at costs of day-to-day servicing, less accumulated depreciation and accumulated impairment losses. Such cost of replacing part of such assets when that cost is incurred if the asset recognition criteria are met. Replaced parts are written off.

Subsequent costs are included in the asset's carrying amount only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to the financial period in which they are incurred.

Property, plant and equipment are shown at revalued amount, being the fair value at the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are made with sufficient regularity such that the carrying amount does not differ materially from that which is determined using fair value at the date of statement of financial position. The fair value of the property, plant and equipment is determined by appraisals undertaken by certified independent valuators. Any accumulated depreciation and impairment losses at the date of revaluation were eliminated against the gross carrying amount of the asset, instead the historical acquisition cost was increased by the surplus of the revaluation.

SNAIGE AB, company code 249664610, Pramones str. 6, Alytus Lithuania CONSOLIDATED INTERIM FINANCIAL STATEMENTS AND CONSOLIDATED INTERIM REPORT FOR SIX MONTHS PERIOD ENDED 30 JUNE 2022

(All amounts are in EUR thousand unless otherwise stated)

Increases in the carrying amount arising on revaluation of property, plant and equipment are credited to other comprehensive income and shown as revaluation reserve in shareholders' equity. The revaluation reserve for property, plant and equipment is being reduced each period by the difference between depreciation based on the revalued carrying amount of the asset and that based on its original cost, which is transferred directly to retained earnings.

The carrying amounts of property, plant and equipment when events or changes in circumstances indicate that the carrying amount may not be recoverable. Decreases that offset previous increases of the same asset are charged to other comprehensive income and debited against reserve in equity; all other decreases are charged to the profit or loss. Revaluation increases that offset previous decreases charged to the profit or loss are recognised in the profit or loss.

Each year the difference between depreciation based on the revaluated carrying amount of the asset charged to the profit or loss, and depreciation based on the asset's original cost is transferred from revaluation reserve to retained earnings net of deferred income tax.

Depreciation is computed on a straight-line basis over the following estimated useful lives from 1 October 2016:

Buildings and structures (including investment property)	15 - 73 years
Machinery and equipment	5 - 63 years
Vehicles	4 - 20 years
Other property, plant and equipment	3 - 30 years

Weighted average useful lives from 1 October 2016 are as follows:

Buildings and structures (including investment property)	55 years
Machinery and equipment	21 vears
Vehicles	16 years
Other property, plant and equipment	12 years

The asset's carrying amounts, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year end.

Gains and losses on disposal are determined by comparing the proceeds with the carrying amount of property, plant and equipment and are recognised within other income or other expenses in the statement of comprehensive income. When revalued assets are sold, the amounts included in revaluation reserve are transferred to retained earnings.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of comprehensive income in the year the asset is derecognised.

Construction in progress is stated at cost less accumulated impairment. This includes the cost of construction, plant and equipment and other directly attributable costs. Construction in progress is not depreciated until the relevant assets are completed and put into operation.

27. Non-current assets held for sale

Non-current assets classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell. Nor-current assets are classified as held for sale if their carrying amounts will be recovered through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset is available for immediate sale in its present condition. Property, plant and equipment once classified as held for sale are not depreciated.

If the Group has classified an asset as held for sale, but the above mentioned criteria are no longer met, the Group ceases to classify the asset as held for sale and measure a non-current asset that ceases to be classified as held for sale at the lower of: its carrying amount before the asset was classified as held for sale, adjusted for any depreciation or revaluations that would have been recognised had the asset not been classified as held for sale, and its recoverable amount at the date of the subsequent decision not to sell. The carying amount of a non-current asset that ceases to be classified as held for sale and recorded in profit or loss in the period in which the criteria are no longer met.

2.8. Inventories

Inventories are valued at the lower of cost or net realisable value, after write-down of obsolete and slow moving items. Net realisable value is the selling price in the ordinary course of business, less the costs of completion, marketing and distribution. Cost is determined by the first-in, first-out (FIFO) method. The cost of finished goods and work in progress includes the applicable allocation of fixed and variable overhead costs based on a normal operating capacity. Unrealisable inventory is fully written-off.

29. Receivables and loans granted

Receivables are initially recorded at the same moment as they were given. Later receivables and loans are accounted in justice to their depreciation.

2.10. Cash and cash equivalents

Cash includes cash on hand and cash with banks. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash with original maturties of three months or less and that are subject to an insignificant risk of change in value.

For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits at current accounts, and other short-term highly liquid investments.

2.11. Borrowings

Borrowing costs that are directly attributable to the acquisition or production of a qualifying asset are capitalised, otherwise - expensed as incurred. No borrowing costs were capitalised as at 30 June 2022 and 31 December 2021.

Borrowings are initially recognised at fair value of proceeds received, net of expenses incurred. They are subsequently carried at amortised cost, the difference between net proceeds and redemption value being recognised in the net profit or loss over the period of the borrowings (except for the capitalised portion as discussed above).

Borrowings are classified as non-current if the completion of a refinancing agreement before the totate provides evidence that the substance of the liability at the balance sheet date was non-current.

2.12. Derivative financial instruments

Derivative financial instruments are initially recognised at fair value on the date the entered into. Subsequent to initial recognition and measurement, outstanding derivatives are carried in the statement of financial position at the fair value. Fair value is determined using the discounted cash flow method applying the effective interest rate. The estimated fair values of these contracts are reported on a gross basis as financial assets for contracts having a positive fair value; and financial liabilities for contracts with a negative fair value. Contracts executed with the same counterparty under legally enforceable master netting agreements are presented on a net basis. The Group had no derivative contracts outstanding as at 30 June 2022 and 31 December 2021.

Gain or loss from changes in the fair value of outstanding derivative contracts is recognised in the comprehensive income statement as they arise.

2.13. Factoring

Factoring transaction is a funding transaction wherein the company transfers to factor claim rights for determined fee. The companies alienate rights to receivables due at a future date according to invoices.

2.14. Financial lease and operating lease

Finance lease - the Group as lessee

The Group recognises finance leases as assets and liabilities in the statement of financial position at amounts equal at the inception of the lease to the fair value of the leased property or, if lower, to the present value of the minimum lease payments. The rate of discount used when calculating the present value of minimum payments of finance lease is the nominal interest rate of finance lease payment, when it is possible to determine it, in other cases, Group's composite interest rate on borrowings is applied. Directly attributable intitle costs are included into the asset value. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability.

Direct expenses incurred by the lessee during the lease period are included in the value of the leased asset.

The depreciation is accounted for finance lease assets and it also gives rise to financial expenses in the statement of comprehensive income for each accounting period. The depreciation policy for leased assets is consistent with that for depreciable assets that are owned. The leased assets cannot be depreciated over the period longer than the lease term, unless the Group according to the lease contract, gets transferred their ownership after the lease term is over.

If the result of sales and lease back transactions is finance lease, any profit from sales exceeding the book value is not recognised as income immediately. It is deferred and amortised over the finance lease term.

Operating lease - the Group as lessee

Leases where the lessor retains all the risk and benefits of ownership of the asset are classified as operating leases. Operating lease payments are recognised as an expense in the statement of comprehensive income on a straight-line basis over the lease term.

If the result of sales and lease back transactions is operating lease and it is obvious that the transaction has been carried out at fair value, any profit or loss is recognised immediately. If the sales price is lower than the fair value, any loss is recognised immediately, except for the cases when the loss is compensated by lower than market prices for lease payments in the future. The loss is then deferred and it is amortised in proportion to the lease payments over a period, during which the assets are expected to be operated. If the sales price exceeds the fair value, a deferral is made for the amount by which the fair value is exceeded and it is amortised over a period, during which the assets are expected to be operated.

2.15. Grants and subsidies

Grants and subsidies (hereinafter "Grants") received in the form of non-current assets or intended for the purchase, construction or other acquisition of non-current assets are considered grants (mainly received from the EU and other structural funds). Assets received free of charge are also allocated to this group of grants. The amount of the grants related to assets is recognised in the financial statements as used in parts according to the assets associated with this grant. In the statement of comprehensive income, a relevant expense account is reduced by the amount of grant amortisation.

Grants received as a compensation for the expenses or unearned income of the current or previous reporting period, also, all the grants, which are not grants related to assets, are considered as grants related to income (mainly received from the EU and other structural funds). The income-related grants are recognised as used in parts to the expenses incurred during the reporting period or unearned income to be compensated by that grant.

2.16. Provisions

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The provisions are reviewed at each balance sheet date and adjusted in order to present the most reasonable current estimate.

2.17. Non-current employee benefits

According to the collective agreement, each employee leaving the retirement age is entitled to a one-ime payment. Employment benefits are recognised in the statement of financial position and reflect the present value of future payments at the date of the statement of financial positioned employment benefit obligation is calculated based on actuarial assumptions, using the projected unit credit method. Present value of the non-current obligation to employees is determined by discounting estimated future cash flows using the which reflects the interest rate of the Government bonds of the same currency and similar maturity as the employment benefits. Actuarial gains and losses are recognised in the statement of comprehensive income as incurred.

2.18. Revenue recognition

Revenue is recognised when it is probable that the economic benefits associated with the transaction will flow to the Group and the amount of the revenue can be measured reliably. Sales are recognised net of VAT and discounts.

Revenue from sales of goods is recognised when delivery has taken place and transfer of risks and rewards has been completed.

Revenue from services is recognized on accrual basis when services are rendered and are stated in the statement of comprehensive income.

In these consolidated financial statements intercompany sales are eliminated.

2.19. Impairment of assets

Financial assets

Financial assets are reviewed for impairment at each reporting date.

For financial assets carried at amortised cost, whenever it is probable that the Group will not collect all amounts due according to the contractual terms of loans or receivables, impairment is recognised in the statement of comprehensive income. The reversal of impairment losses previously recorded when the decrease in impairment loss can be justified by an event occurring after the write-down. Such reversal is recorded in the statement of comprehensive income. However, the increased carrying amount is only recognised to the extent it does not exceed the amortised cost that would have been had the impairment not been recognised.

Other assets

Other assets are reviewed for impairment whenever events or circumstances indicate that carrying amount of an asset may not be recoverable. Whenever the carrying amount of an asset exceeds its recoverable amount, an impairment loss is recognised in the statement of comprehensive income. Reversal of impairment losses recognised in prior years is recorded when there is an indication that the impairment losses recognised for the asset no longer exist or have decreased. The reversal is accounted for in the statement of comprehensive income as the impairment loss.

2.20. Subsequent events

Subsequent events that provide additional information about the Group's position at the statement of financial position (adjusting events) are reflected in the financial statements that are not adjusting events are disclosed in the notes when material.

2.21. Offsetting and comparative figures

When preparing the financial statements, assets and liabilities, as well as revenue and expenses are not set off, except the cases when a certain International Financial Reporting Standard specifically requires such set-off.

3. Segment information

The Group's sole business segment identified for the management purposes is the production of refrigerators and specialised equipment, therefore this note does not include any disclosures on operating segments, as they are the same as information provided by the Group in these financial statements.

	Total sales revenue		Inter-group sales		Sales revenue
	2022	2021	20922	2012	2092	2022
Russia	1	147				147
Ukraine	532	2,260			532	2,260
Western Europe	5,492	7,062			5,492	7,062
Central Europe	3,781	3,252			3,781	3,252
Lithuania	1,797	2,386	(187)	(131)	1,610	2,255
Other CIS countries	88	264			ರಿಕ	264
Other Baltic states	117	228			117	228
Other countries	125	1,101	-	1	125	1,101
Total	11,942	16,700	(1877)	(131)	11,755	16,569

Transactions between the Group companies are made on commercial terms and conditions. Inter-group sales are eliminated in consolidation

As at year 2022 the sales to the five largest buyers comprised 42.74% of total sales, including the largest buyer 11.55% (as at 2021 - 39.11%, including: the largest buyer 13.67%).

4. Cost of sales

	30-06-2022	30-06-2021
Raw materials	7,735	10,451
Salaries and wages	1,442	1,715
Depreciation and amortisation	770	749
Other	2,185	2,122
Total:	12,132	15,037
Other income 5.	30-06-2022	30-06-2021
Income from transportation services	44	238
Income from sale of other services
Income from rent of premises	14	13
Gain on disposal of property, plant and equipment	1	(17)
Other	60	34
Total:	119	268
ర్. Operating expenses
	30-06-2022	30-06-2024
Selling expenses	854	1,278
General and administrative expenses	1,448	899
Total:	2,302	2,177
7. Other operating expenses
	30-06-2022	30-06-2021
Transportation expenses	37	229
Gain on disposal of property, plant and equipment
Other	41	33
	78	262
8. Financial income
	30-06-2022	30-06-2021
Foreign currency exchange gain	1	2
Interest income and other
	1	2

9. Financial expenses

	30-06-2022	30-06-2021
Interest expenses	276	234
Loss of foreign currency exchange, net
Realized loss on foreign currency derivatives
Loss of foreign currency translation transactions
Other
	276	234
10. Intangible assets		Balance sheet value
	20-06-2199	24-19-2022

	30-06-2022	31-12-2021
Development costs	1.250	1,388
Software, license	5	/
Other intangible assets	332	172
Total:	1,587	1,567

Over the period of six months of 2022 the Group has accumulated EUR 139 thousand (over six months of 2021 respectively - EUR 148 thousand) of intangible assets depreciation, of which EUR 139 thousand (EUR 148 thousand in 2021) is included in operating expenses of the profit (loss) statement.

Part of non-current intangible assets of the Group with the acquisition value of EUR 5,161 thousand as at 30 June 2022, was fully amortised (EUR 4,842 thousand for 2021) but is still in use.

11. Non-current tangible assets	Balance sheet value
	30-06-2072	31-12-2024
Land and buildings	5,124	5,236
Machinery and equipment	5,328	5,878
Vehicles and other property	26	38
Other equipment, fittings and tools	802	913
Construction in progress and prepayments	1.609	1,301
Vehicles used on a leasing basis	5	14
Right to land lease	94	વેરૂ
Total:	12,988	13.475

Revaluation of tangible assets

Starting from 30 September 2016, the Group, and the Company decided to revaluate the non-current assets, including buildings, structures, machinery and equipment as well as other production equipment. The valuation of non-current assets for financial reporting purposes has been carried out by external, independent valuator, having appropriate recognised professional qualifications and recent experience in the location and category of the property being valued. The valuation of real estate was based on the comparable method by comparing sales prices of similar real estate in Lithuania. The valuation of machinery and equipment and other non-current assets was based on comparable or depreciated replacement cost (DRC) methods. The fair value of the property was determined by an independent property appraiser, UAB Corporation Matininkai.

Building and structures were attributed to Level 3 of fair value hierarchy. Under the Market method, the sale transactions or offer examples in respect of the real estate and constructions were observed in the market. The comparable real estate

objects were selected due to the similarity with the object being measured with respect to size, nature, intended use, condition and other parameters. The valuation of real estate required adjustments to reflect differences between the objects being measured and comparable objects.

Machinery and equipment, vehicles and other assets were also attributed to Level 3 of fair value hierarchy. Part of the machinery was valued based on at least two or three comparable inputs selected were similar to the assets subject to valuation. This method was used for the measurement of a part of equipment in respect of which sale or offer market data was available. The remaining part of machinery and equipment were valued by DRC method. The replacement values of these non-current assets were based on their acquisition costs and comparable price changes provided by the Statistics Department. When establishing physical obsolescence, it is assumed that the value of property being measured is written off in proportion to the number of years. The assets subject to valuation were classified into categories in respect of which the useful life up to 20 years depending on the group of asset was established based on the expert opinion of the valuator.

Assets were valued under this scheme:

• 1. All Company long term assets were valued using discounted cash flows model.
• 1. From this value, intangible assets at balance value and buildings at market value were taken off.

• Other movable assets were valuated using comparison method, while special movable assets, not possible to value at comparison model. Some assets, not possible to value by methods described above, were valuated at disposal rate.

• The remaining value was allocated to all valued items, by using correction coefficients. Only assets, valued by DRC and disposal methods, were corrected using coefficients.

The increase in value of non-current tangible assets was registered by increasing the acquisition cost of the asset and was accounted as follows as at 30 September 2018:

The Company	Book value	Revalued amounts	Revaluation surplus
Buildings and structures	5.404	5.975	571
Machinery and equipment	8.089	9.160	1.071
Vehicles and other assets	1.435	1.759	324
Total	14.928	16,894	1.966

The useful life terms of Non-current material assets, in years:

	Statistical	Remaining useful life terms at the revaluation date	Remaining useful life terms, stated after revaluation
Land and buildings	49	22	26
Machinery and equipment	6	1	8
Vehicles	6	1	ঘ
Other plant, devices, tools and equipment	5	0.5	5
Other tangible assets	5	0.5	8

The new useful lifetimes for assessing depreciation have been applied since 1 October 2016.

The depreciation charge of the Group's property, plant and investment property for the period of six months of 2022 amounts to EUR 805 thousand (EUR 849 thousand respectively for six months of 2021). After the assessment of amortization of grants, the amount of EUR 762 thousand for 2022 (EUR 801 thousand for 2021) was included into production costs. The remaining amount of EUR 43 thousand (EUR 48 thousand for 2021) was included into administration expenses in the Group's profit or loss.

As at 30 June 2022 buildings of the Group and the Company with the carrying amount of EUR 5,021 thousand, (as at 31 December 2021 – EUR 5,278 thousand respectively), the Group's machinery and equipment with the carrying amount of EUR 6,671 thousand (as at 31 December 2021 - EUR 5,391 thousand respectively) were pledged to bank as a collateral for the loans (Note 21).

12. Non-current and current loans to related companies

	Group		Company
	30 June 20922	31 December 2021	30 June 2022	31 December 2021
Loans granted	8.068	8,068	8,068	8,068
Interest calculated	2,262	2,262	2,262	2,262
Total receivables	10,330	10,330	10,330	10,330
Minus:
Provisions for doubtful loans	(8,068)	(8,068)	(8,068)	(8,068)
Provisions for doubtful interest	(2,262)	(2,262)	(2,262)	(2,262)
Minus: total provisions	(10,330)	(10,330)	(10,330)	(10,330)
Net receivables	1	1	1

13. Inventories

	30-06-2022	31-12-2021
Raw materials, spare parts	2,395	3,288
Production in progress	444	274
Finished goods	1,620	1,867
Goods purchased for resale	458	882
Minus: total provisions	(164)	(169)
Total inventories, net	4,753	6,142

Raw materials and spare parts consist of compressors, components, plastics, wires, metals and in the production.

As at 30 June 2022 and as at 31 December 2021, the Group and Company has no legal restrictions on inventories.

Trade receivables 14.

	30-06-2022	31-12-2021
Receivables	4,927	4,918
Less: impairment allowance for doubtful receivables	(963)	(671)
	3,964	4,247

Trade receivables are non-interest bearing and are generally on 30 - 90 day's terms.

As at 30 June 2022 100% impairment was accounted trade receivables in gross values of EUR 963 thousand (as at 31 December 2021 – EUR 671 thousand). Change in impairment allowance for receivables was accounted for within administrative expenses.

Impairment allowance for doubtful receivables is recognised due to receivables from not related customers.

ln note 14 mentioned trade receivables from the amount of EUR 2,999 thousand (EUR 2,718 thousand as at 31 December 2021) were insured with credit insurance by Atraditörsäkring Lithuanian branch. Trade receivables from Ukraine, Moldova, Russia and other CIS countries are not insured.

Movements in the individually assessed impairment of trade receivables were as follows:

	30-06-2022	31-12-2021
Balance at the beginning of the period	(671)	(1,259)
Charge for the year	(292)
Write-offs of trade receivables		584
Effect of the change in foreign currency exchange rate		(2)
Amounts paid		6
Balance in the end of the period	(963)	(674)

The receivables are written-off when it becomes obvious that they will not be recovered.

As at 30 June 2022, the Group has factoring agreement with recourse, but there are no any restrictions on company assets according to this agreement.

15. Other current assets

	30-06-2022	31-12-2021
VAT receivable	84	192
Restricted cash	14	14
Other receivables	રેત્વે જિલ્લામાં આવેલું એક ગામનાં મુખ્યત્વે ખેત-ઉત્પત્તમજૂરી તેમ જ દૂધની ડેરી જેવી સવલતો પ્રાપ્ય થયેલી છે. આ ગામમાં મુખ્યત્વે ખેત-ઉત્પત્તમજૂરી તેમ જ દૂધની ડેરી જેવી સવલતો પ્	44
	137	250

Movements in the individually assessed impairment of other receivables were as follows:

	SU-UD-ZUZZ	51=12=2021
Balance at the beginning of the period
Charge for the year
Effect of the change in foreign currency exchange rate
Amounts paid
Write off
Balance in the end of the period

16. Cash and cash equivalents

	30-06-2022	31-12-2021
Cash at bank	175	126
Cash on hand	ଚି	ന
Cash in transit	1
	182	129

17. Share capital

According to the Law on Companies of the Republic of Lithuania, the Company's total equity cannot be less than 1/2 of its share capital specified in the Company's by-laws. As at 30 June 2022, the Company did not comply with this requirement. Measures to comly to this requirement will be set together with restructuring plan.

18. Reserves

Legal reserve

The Company's legal reserve is compulsory under Lithuanian legislation. Annual transfers of not profit are compulsory until the reserve reaches 10% of the share capital. As at 30 June 2022 the legal reserve was fully formed.

As of 30 June 2022, the legal reserve amounted to EUR 718 thousand.

Other reserves

Other reserves are formed based on the General Shareholders' Meeting for special purposes. All distributable reserves before distributing the profit are transferred to retained earnings and redistributed annually under a decision of the shareholders.

Foreign currency translation reserve

The foreign currency translation reserve is used for translation differences arising upon consolidation of the financial statements of foreign subsidiaries.

Exchange differences are classified as equity in the consolidated financial statements until the investment. Upon disposal of the corresponding investment, the cumulative transferred to retained result in the same period when the gain or loss on disposal is recognised.

19. Grants

Balance as at 31 December 2020	5,020
Received during the period	118
Balance as at 31 December 2021	5,138
Received during the period
Balance as at 31 March 2022	5,138
Received during the period
Balance as at 30 June 2022	5,138

Balance as at 31 December 2020	4,628
Amortisation during the period	221
Accumulated amortisation as at 31 December 2021	4,849
Amortisation during the period	14
Accumulated amortisation as at 31 March 2022	4,863
Amortisation during the period	14
Accumulated amortisation as at 30 June 2022	4,877
Carrying amount as at 30 June 2022	261
Carrying amount as at 31 December 2021	239

The grants were received for the renewal of production machinery and repairs of buildings in connection with the elimination of CFC 11 element from the production of polyurethane insulation and filling foam, and for elimination of greenhouse gases in the manufacturing of domestic refrigerators and freezers; also, for increase in efficiency by investing into the production of commercial refrigerators and infrastructure development via investments into a research centre of new products.

Grants are depreciated over the same period as the machinery and other assets for which grants were designated when compensatory costs are incurred. The amortization of grants is included in production cost against depreciation of machinery and reconstruction of buildings for which the grants were designated.

To reimburse costs the grants is included in the period in which only those costs have been incurred and reduced.

20. Warranty provision

The Group provides a warranty of 2 years for the production sold. The provision for warranty repairs was accounted for based on the expected cost of repairs and statistical warranty repair rates and divided respectively into non-current and current provisions.

Changes in warranty provisions were as follows:

	30-06-2022	31-12-2021
As at 1 January	300	320
Additions during the year	41	165
Utilised	(51)	(185)
Foreign currency exchange effect
Written off
	290	300

Warranty provisions are accounted for:		30-06-2022
l	non-current	118
l	current	172
		31-12-2021
-	non-current	118
-	current	182

21. Borrowings

	30-06-2022	31-12-2021
Non-current borrowings
Non-current borrowings with fixed interest rate	888	888
Non-current borrowings with variable interest rate	7,108	7,108
Long-term liabilities of leasing companies	9	9
Total	8,005	8,005
Current borrowings
Current borrowings with fixed interest rate	371	437
Current borrowings with variable interest rate	1,268	1,270
Current liabilities of leasing companies	9	18
Other debt liabilities	830	777
Total	2,478	2,502
In Total	10,483	10,507

The main information on individual borrowings is disclosed below:

	Type	Maturitv		As at 30 June 2022
Borrowing 1	Loan	31-01-2023	8.376	8.378

SNAIGE AB, company code 249664610, Pramones str. 6, Alytus Lithuania CONSOLIDATED INTERIM FINANCIAL STATEMENTS AND CONSOLIDATED INTERIM REPORT FOR SIX MONTHS PERIOD ENDED 30 JUNE 2022

(All amounts are in EUR thousand unless otherwise stated)

			10.483	10.507
Leasing 4		25-06-2023	4	റ
Leasing 3		25-06-2023	র্বা	റ്റ്
Leasing 2		25-06-2023	ব	6
Leasing 1		25-06-2023	6	ு
Receivables financed by the bank	Factoring	05-06-2022	830	777
Borrowing 2	Loan	11-08-2024	1,259	1,325

As at 30 June 2022 annual interest rate of the loan 1 is 1 morth EURIBOR + 5.25% (as at 31 December 2021 EURIBOR + 5.25%). As at 30 June 2022, loan 2 is set at 0.67% for a 30-day period and 0.23% compensatory interest per day.

As of 30 June 2022 the Company's buildings with the carrying amount of EUR 5,278 thousand as at 31 December 2021), the Group's and Company's machinery and equipment with the carrying amount of EUR 6,671 thousand (EUR 5,391 thousand as at 31 December 2021) were pledged to the banks for the loans.

According to the contract addendum no. 9 signed with the bank on 11 December 2020, the entire loan must be repaid by 31 January 2023. In addition, according to this agreement, a Russian company related to the shareholders guaranteed the Company's obligations under the loan 1 agreement. The maximum amount of guarantee is 6,890 thousand.

According to factoring with recourse agreement, maximum factoring limit on 30 June 2022 is EUR 1,930 thousand (EUR 930 thousand as at 31 December 2021). Factoring advances can only be paid on the accounts of insured clients.

According to the repayment terms provided for in the contracts, loans are accounted for in long-term or current liabilities.

After the court approves the company's restructuring, all liabilities will be accounted in accordance to the signed settlement schedules.

At the reporting date, the outstanding loans and lease received in foreign currencies:

Currency of loans, leasing and other debt obligations:	30-06-2022	31-12-2021
EUR	10.483	10.507
	10.483	10,507

Repayment schedule for borrowings:

	Fixed interest rate	Variable interest rate
2022	1,210	1,268
2023	274	7,108
2024	623
	2,107	8,376

22. Financial leasing

Interest rate for the Group's financial leasing are fixed at 3.9%.

Financial lease payments in the future in accordance with the financial lease agreements for dates 30 June 2022 and 31 December 2021 as follows:

		30-06-2022	31-12-2021
2022		10	19
2023		ರಿ	9
Financial lease liabilities total		19	28
Interest		(1)	(1)
Financial lease liabilities current value		18	27
Financial lease obligations are accounted as:	18
current	ರಿ
non-current	9

The assets of the Group under financial lease agreements consist of machinery and equipment (subsidiary). Term of lease - 5 years.

Book value of leased assets:

	30-06-2022	31-12-2021
Machinery and equipment	51	60
Cars	21	32
	72	92

23. Operating lease

The Group have concluded several contracts of operating lease of land and premises. The terms of lease do not include restrictions of the activities of the Group in connection with the dividends, additional lease agreements. As at 30 June 2022, the lease expenses of the Group amounted to EUR 11 thousand as at 30 June 2021).

Planned operating lease expenses of the Group in 2022 will be EUR 24 thousand.

The most significant operating lease agreement of the non-current agreement of Snaige AB signed with the Municipality of Alytus for the rent of the lease are reviewed periodically; the lease end term is 2 July 2078.

Future lease payments according to the signed lease agreements are not defined as agreements might be cancelled upon the prior notice of 1 month.

24. Other current liabilities

	30-06-2022	31-12-2021
Salaries and related taxes	467	442
Vacation reserve	268	451
Dividends payable	49	49
Accrued interest	190	ு
Other taxes payable
Provisions for warranty repairs	172	182
Other payables and accrued expenses	182	324
	1,328	1,457

Terms and conditions of other payables:

• Other payables are non-interest bearing and have the settlement term up to six months.

• Interest payable is normally settled monthly throughout the financial year.

25. Basic and diluted profit (loss) per share in EUR

	30-06-2022	31-12-2024
Shares issued 1 January	39.622	39.622
Net profit (loss) for the year, attributable to the shareholders of company, in EUR	(2,913)	(892)
Basic profit (loss) per share, in EUR	(0.07)	(0.02)

26. Risk and capital management

The Group and the Company have exposure to the following risks: credit risk and market risk. This note presents information about the Group's exposure to each of these risks, the Company's objectives, policies and processes for measuring and managing risk, and the Company's management of capital. Further quantitative disclosures are included throughout these financial statements.

The Board has overall responsibility for the establishment and oversight of the Group and the Company's risk management framework. The Group's and Company's risk management policies are established to identify and analyse the risks faced by the Group and the Company, to set appropriate risk limits and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group's and the Company's activities. The Group and the Company aim to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

Credit risk

As at 30 June 2022 and 31 December 2021, the maximum exposure to credit risk is represented by the carrying amount of each financial asset, consequently, the Group's and the Company's management considers that its maximum exposure is reflected by the amount of loans receivable from related parties, trade and other receivables, net of impairment allowance, and the amount of cash equivalents recognised at the date of the statement of financial position. Credit risk or risk that a counterparty will not fulfil its obligations, is controlled by credit terms and monitoring procedures, using services of external credit insurance agencies.

As at 30 June 2022 and 31 December 2021, the credit risk was related to:

	30-06-2022	31-12-2021
Trade and other receivables	3.964	4,247
Cash and cash equivalents	182	129
	4,146	4,376

The concentration of the Group's trade partners and the largest credit risk receivables according to clients as at 30 June 2022 and 31 December 2021:

	20922	%	2021	%
Client 1	665	14	852	17
Client 2	338	7	699	14
Client 3	262	5	347	7
Client 4	255	ട്	221	5
Client 5	253	5	192	4
Client 6	239	5	161	3
Client 7	231	റ	160	3
Other clients	2,684	54	2,286	47
Impairment	(963)		(671)
	3,964	100	4.247	100

Trade receivables according to geographic regions:

	30-06-2022	31-12-2021
Central Europe	1,539	1,263
Ukraine	246	445
Lithuania	560	228
Western Europe	1.428	1,904
Other CIS countries	20	86
Other Baltic States	19	14
Russia	40	307
Other	112
	3.964	4,247

The analysis of delays in trade receivables less impairment losses as at 30 June 2022 and 31 December 2021 is as follows: Overdue receivables from customers, that are not

Receivables from		recognized for Impalrinent
	customers that are not past due and are not recognized for impairment	Less than 30 days	30 - 60 days	60 - 90 days	90 - 120 days	More than 120 days	Total
2092	3,351	241	18	5	140	209	3.964
2021	3.759	74	60	8		346	4.247

Central Europe comprises Poland, the Czech Republic, Bulgaria; Western Europe comprises France, Germany, Norway, Portugal; other CIS countries include Uzbekistan, Moldova, and Azerbaijan.

The Group's and the Company's management believes that the maximum risk equals to trade receivables, less recognised impairment losses at the reporting date. The Group and the Company do not provide guarantees for obligations of other parties.

The credit policy is implemented by the Group and credit risk is constantly controlled. Credit risk assessment is applied to all clients willing to get a payment deferral.

Trade receivables from the Group in the amount of EUR 2,999 thousand (EUR 2,718 thousand as at 31 December 2021) were insured with credit insurance by Atraditförsäkring Lithuanian branch. Trade receivables from Ukraine, Moldova, Russia and other CIS countries were not insured.

In accordance with the policy of receivables recognition as doubtful, the payments variations from are monitored and preventive actions are taken in order to avoid overdue receivables in accordance with the standard of the Group entitled "Trade Credits Risk Management Procedure".

According to the policy of the Group, receivables are considered to be doubtful if they meet the following criteria:

• The client is late with settlement for 60 and more days, receivable amount is not covered by insurance and it does not come from subsidiaries;
• Factorised clients late with settlement for 30 and more days;
• Client is unable to fulfil the obligations assumed;
• Reluctant to communicate with the seller;
• Turnover of management is observed;
• Reorganisation process is observed; =
• Information about tax penalties, judicial operation and restrictions of the use of assets is observed;
• Bankruptcy case;
• Inconsistency and variation in payments;
• Other criteria

Interest rate risk

The Group's borrowings are subject to variable interest rates related to EURIBOR.

As at the period of six months of 2022 and in 2021, the Group did not use any financial instruments to hedge against interest rate risk.

Liquidity risk

The purpose of the Group's liquidity risk management policy is to maintain the ratio between continuous financing and flexibility in using overdrafts, bank loans, bonds, financial and operating lease agreements.

Foreign exchange risk

The Group significantly reduced income earned in USD.

Most of income is earned in euro by the Group.

Capital management

The Group manage share capital, share premium, legal reserves, foreign currency translation reserve and retained earnings as capital. The primary objective of the Group's capital management is to ensure that the Group complies with the externally imposed capital requirements and to maintain appropriate capital ratios in order to business and to maximise the shareholders' benefit.

The Group manages its capital structure and makes adjustments to it in the light of changes in the economic conditions. To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares, reduce capital.

The Company is obliged to keep its equity not lower than 50% of its share capital, as imposed by the Law on Companies of the Republic of Lithuania. As at 30 June 2022, this requirement was not fulfilled (Note 17).

27. Commitments and contingencies

The tax authorities may at any time perform investigation of the Company's accounting registers and records for the period of five years preceding the accounting tax period, as well as calculate additional taxes and penalties. Management of the Company is not aware of any circumstances which would cause calculation of additional significant tax liabilities.

In 23 June 2022, an Extraordinary General Meeting of Shareholders of Snaige AB was held where the following decisions were made:

• Disapprove of covering the Company's losses with shareholders' contributions.
• Approve the Company's restructuring plan project (note 30).

28. Related party transactions

According to IAS 24 Related Party Disclosures, the parties are considered related when one party can unilaterally or jointly control other party or have significant influence over the other party in making financial or operation matters, or when parties are jointly controlled and if the members of management, their relatives or close persons who can unilaterally or jointly control the Group or have influence on it. To determine whether the assessment is based on the nature of relation rather than the form.

The related parties of the Group during 2022 and 2021 were as follows:

Vaidana UAB (former controlling party);

Hymana Holdings Ltd. (former controlling party);

Sekenora holdings limited (the parent);

The Group has a policy to conduct related party transactions on commercial terms and conditions. Outstanding balances at the year-end are unsecured, interest-free, except the loan granted.

As at 30 June 2022 and 31 December 2021, the Group has formed an impairment allowances for doubtful debts, related to receivables from loans and related interest from related parties. Doubfful receivables are tested each year by inspecting the financial position of the related party and assessing the market in which the related party operates.

Financial and investment transactions with the related parties at 30 June 2022 and 31 December 2021:

SNAIGĖ AB, company code 249664610, Pramonės str. 6, Alytus Lithuania CONSOLIDATED INTERIM FINANCIAL STATEMENTS AND CONSOLIDATED INTERIM REPORT FOR SIX MONTHS PERIOD ENDED 30 JUNE 2022

(All amounts are in EUR thousand unless otherwise stated)

	2022			2021
	Loans	Interest	Loans	Interest	Loans	Interest	Loans	Interest
	received	expenses granted			income received	expenses	granted	income
Controlling parties The parent
	1	I	1	0	0	1

The agreement, for the assignment claim right towards Hymana Holdings Ltd., arising from the Agreement for the Assignment (Cession) dated 24 November 2015 concluded between the Company and Hymana Holdings Ltd., was concluded with the Company's Board member K.A. Kovalchuk (Assignee). The Claim Right shall be assigned by instalments and when the Assignee makes a payment and funds are credited to the Company's bank account, respective part of the Claim Right in amount corresponding to the amount of funds received shall be considered to the Assignee by the Company. The Assignee shall not in any case be considered as acquired the whole Claim Right if the amount paid by the Assignee and credited in the Company's bank account is lower than an amount of the Claim Right. The Company shall have a right to terminate the Agreement unilaterally at any time.

Trade transactions with the related parties:

30-06-2022	Purchases	Sales	Receivables	Payables
Companies, controlled by ultimate shareholders	72	19	397	166
Controlling parties	-	1	1
	72	19	397	ન કિર્ણ

31-12-2021	Purchases	Sales	Receivables	Payables
Companies, controlled by ultimate shareholders	203	83	638	94
Controlling parties
	203	83	638	04

The Company's transactions carried out with subsidiaries:

		Purchases		Sales
	30-06-2022 ---------------------------------------------------------------------------------------------------------------		31-12-2021
Subsidiaries	1749	234	68	99

The Company has a policy to conduct transactions with subsidiaries on contractual terms. The Company's transactions with subsidiaries represent acquisitions and sales of raw materials and acquisitions of marketing services, as well as acquisitions of property, plant and equipment. Outstanding balances at the year-end are unsecured, receivables are interest-free and settlement occurs at bank accounts. There were no pledged significant amounts of assets to ensure the repayment of receivables from subsidiaries.

The carrying amount of receivables from subsidiaries at 30 June 2022 and 31 December 2021:

	30-06-2022	31-12-2021
Non-current receivables
Subsidiaries
Total non-current receivables
Current receivables
Subsidiaries	13	23
Total current receivables	13	23

	Receivables from subsidiaries and granted loans neither past due nor impaired	Receivables from subsidiaries and granted loans past
		Less than 30 days	30 - 60 days	60 - 90 days	90 - 120 days	More than 120 days	l otal
2022	13						13
2021	23						23

The analysis of receivables from subsidiaries and granted loans during the period of 30 June 2022 and 31 December 2021:

Payables to subsidiaries as of 30 June 2022 and 31 December 2021 (included under the trade payables caption in the Company's statement of financial position):

	30-06-2022	31-12-2021
Subsidiaries	203	89

At the moment of report preparation, Company does not have any guarantee agreements for its subsidiaries.

Remuneration of the management and other payments

Remuneration of Management of the Company and of its subsidiaries, including taxes amounted to EUR 473 thousand (23 employees) during the period of six months of 2022 (EUR 583 thousand (24 employees) during the same period of 2021). The Management of the Company and of its subsidiaries did not receive any other loans, guarantees; no other payments or property transfers were made or accrued.

29. Impact of the military conflict in Ukraine

In response to the geopolitical situation, Snaige AB has taken all necessary measures to preserve the continuity of the company's operations, employees, clients and partners. At the time of issue of the Statements, the Company continues to operate. Snaige AB is able to fulfil the placed orders and fulfils them, but faces additional risks to the Company's operations:

• At the time of preparing the Statements, no sanctions related to the military conflict have been imposed on the Company, its management or shareholders.
• At the time of preparing the Statements, the export of production to Ukraine has been renewed, as well as the activities of the subsidiary ZAO "Snaige Ukraina" have resumed. As at 22 August 2022 receivables from Ukrainian customers amounted to EUR 265 thousand. The recovery of receivables after the end of hostilities is considered positive, but with a significant delay. The supply of raw materials from Ukraine has stopped, however, its volume in 2021 was insignificant (about 1% of all purchases) and the suspension of supply from Ukraine does not directly affect the Company's operations.
• Exports of products to Russia and Belarus have been suspended, although there are no trade restrictions or sanctions on the products or the Company's customers at the time of preparing the Statements. The Company's revenue received from sales in Russia and Belarus in 2021 amounted about 2% of the company's total turnover. As at 22 August 2022, receivables from Russian and Belarusian customers were insignificant. The supply of raw materials from Belarus is in progress, while from Russia, it has stopped, but its volume in 2021 were insignificant (less than 1% of total purchases). The suspension of supplies from Russia and Belarus does not directly affect the Company's operations.
• The indirect impact of the military conflict on the Company's and the Group's operations is very negative because:
  • · Due to the resulting tensions, a significant slowdown in trade observed in almost all of the Company's markets (up to 50% of normal volumes in different markets, according to expert estimates).
  • · Significant increases in raw material, transport and energy prices due to the uncertainties caused by the war in Ukraine, and the opportunities to purchase them are decreasing, which has a negative impact on the Company's and the Group's operating results.
  • There is a risk that the estimates used in the Company's and the Group's accounting, due to the market value of assets, the fair market value of financial instruments and going concern assumptions, may be inaccurate, as it is not yet possible to predict the exact consequences of military conflict for these sizes.

At present, it is quite difficult reasonably estimate the impact on the financial results due to various uncertainties. However, Snaigé AB exports its production to more than 30 countries in Europe, Asia and Africa, the company expects to compensate for poor sales in Ukraine and other markets.

30. Subsequent events

In order to implement the restructuring according to the draft restructuring plan of the Company approved by the extraordinary general meeting of the Company's shareholders on 23 July 2022, Snaige AB on 1 July 2022 applied to the Kaunas District Court with a request to initiate the Company's restructuring case.

Kaunas District Court by the order of 08/09/2022 in civil case No. eB2-1226-555/2022 has opened restructuring proceedings in respect of AB Snaige (The Company).

UAB Įmonių Bankroto Administravimo ir Teisinių Paslaugų Biuras (UAB Office of Enterprise Bankruptcy Administration and Legal Services) was appointed as the Administrator (No N-JA0027), authorised person - Aurimas Valaitis.

The order on institution of restructuring came into force and AB Snaige obtained the status of company under restructuring on 20/09/2022.

Pursuant to the Article 28 of the Law on Insolvency of Legal Entities, from the date of entry into force of the decision to open restructuring proceedings, i.e. from 20/09/2022, and until entry into force of the courts order to approve the restructuring plan or to terminate the insolvency proceedings, AB Snaige is prohibited the following:

1. To excecute financial obligations of the company which have not been fulfilled before the date of entry into force of the of the court's order to open restructuring proceedings, including the payment of taxes, interest and penalties;

2. To recover debts from the company;

3. To set off claims other than homogeneous counter-claims which satisfy both of the following conditions: arose before the date of entry into force of the court's order to open restructuring proceedings and such set-off is possible in accordance with the provisions of the tax legislation on off-setting of tax overpayment (arrears);

4. To calculate penalties and interest on the company's obligations arising before the date of entry into force of the court's order to open restructuring proceedings;

5. 1. To fix forced mortgage, easements, usufruct;
6. 1. To pledge the property, guarantee, ensure or otherwise guarantee the fulfilment of other persons;
7. 1. To sell or otherwise transfer the assets of the company necessary to maintain its viability.

The company under restructuring pays all current contributions i.e. all payments and contributions necessary to ensure the business activities of the company, including the compulsory contributions, which are made during the restructuring proceedings, starting from the date of entry into force of the court's order to open restructuring proceedings.

The company's obligations to creditors, arising before the date of entry into force of the court's order to open restructuring proceedings, i.e. before 20/09/2022, will be excecuted with the terms and conditions set out in the restructuring plan. Meeting of the Company's creditors, at which the draft restructuring plan will be convened in January 2023.

The company under restructuring continue commercial activities. The corporate commercial activities are managed by the company's management bodies in accordance with their competence, as set out in the company's statutes and other documents governing the company's activities, and in accordance with the restrictions laid down in the Law on Insolvency of Legal Entities and in the order of Kaunas Regional Court of 08/09/2022.

IV. CONSOLIDATED INTERIM REPORT

INFORMATION ABOUT THE ISSUER'S AUTHORIZED CAPITAL, THE ISSUED SECURITIES, SHAREHOLDERS AND MEMBERS OF THE MANAGEMENT BODIES

The issuer's authorized capital

The authorized capital registered in the enterprise register

Name of the securities	Amount of the securities	Nominal value. EUR	Total nominal value, EUR	Share of the authorized capital, in percentage
Ordinary registered shares ISIN LT0000109274	39.622.395	0.17	6.735.807.15	100

Changes in autorized capital:

Registracion of changed autorized capital	The sizes of the autorized capital
01-01-2015	EUR 11.490.494.55
20-12-2016	EUR 11.886.718.50
24-09-2019	EUR 10.301.822.70
19-08-2020	EUR 6,735,807.15

Major shareholders

The total number of the shareholders on 16 June 2022 (on the record date of the Extraordinary General Meeting) was 1107.

The major shareholders who own or control more than 5 percent of the issuer's authorized capital:

	Amount of the ordinary registered shares available, in pcs.		Share of the authorized capital and votes available, in percentage
Names (company names, addresses, enterprise register codes) of the	l otal	incl. the ones owned by the shareholder	Total		incl. the ordinary registered shares owned by the shareholder		Total incl. the share of the entities
shareholders			Share of the votes	Share of the capital	share of the appointed votes	share of the capital	group operating jointly, in percentage
Sekenora Holdings Limited, 32 Kritis str., Papachristoforou Building, Cyprus, HE371000	36,096,193	36,096,193	91.10	91.10	91.10	91.10

The secondary turnover of the issuer's securities

The securities issued by the Company have been listed in the Official Trading CMX Villnius since 9 April 1998. Trade of the Company's ordinary registered shares in the securities stock exchange was started on 11 August 1995. The VP ISIN number is LT0000109274.

Based on 1 June 2009, Snaige AB request the Company's shares from NASDAQ OMX Vilnius Baltic main list were moved to NASDAQ OMX Vilnius Baltic secondary list.

The name of the securities - the ordinary registered shares of Snaige AB.

Amount of the securities: 39,622,395 units. The nominal value of a share: EUR 0.17.

Trade in securities

Accounting period		Price, EUR				Total turnover
from	to	As of last session.	Max price	Min price	Overage price	pcs	EUR
01-01-2022	31-03-2022	0.191	0.194	0.173	0.189	60,603	11,460.00
01-04-2022	30-06-2022	0.156	0.192	0.148	0.179	31,174	5,589.82

Below you can find Company shares turnover and price (in EUR). The information is from NASDAQ OMX Vilnius internet page:

08.01.2022 - 30.06.2022 0.156 € -0.034 (-17.89%)

Capitalizacion of the Company's shares on 30 of June 2022:

Name	30-12-2021	30-06-2022	Change
SNG1L	EUR 7.528.255.05	EUR 6,181,093.62	-17.89%

Below the graphs are from OMX Baltic Benchmark, OMX Vilnius indexes and Snaige AB shares prices graphs for period from 1 January 2022 till 30 June 2022. The information is from NASDAQOMX Vilnius internet page:

Baltic market indexes

INDEX EQUITY	OPENING VALUE	CLOSING VALUE	CHANGE %
OMX_Baltic_Benchmark_Gl	1,568.82	1,365.37	-12.97
OMX_Baltic_10	319.37	268.79	-15.84
SNG1L - Snaige	0.19	0.16	-17.89

Agreements with the stakeholders of public circulation of securities

On 20 May 2013 Snaige AB entered into agreement with FMI Orion securities UAB (A. Tumeno str. 4, Vilnius) for management of accounts of the Company's issued securities and management of accounts of personal securities.

Management bodies of the company

The company's bodies are:

• General meeting of shareholders.
• · The Board consists of five members elected for a term of four years.
• · CEO of the company Managing Director.

The convening and competence of the General Meeting of Shareholders does not differ from the procedure and competence of convening the General Meeting of Shareholders specified in the Law on Companies.

The Board of the Company is elected and revoked by the General Meeting of Shareholders in accordance with the procedure regulated by the Law on Companies. The Board of the Company has the right to issue bonds and performs a supervisory function. The competence of the Board in other cases does not differ from the competence established in the Law on Companies. The Board of the Company is established by the Rules of Procedure of the Board.

The competence of the CEO of the Company, the procedure of his appointment and removal does not differ from that specified in the Law on Companies.

Since 2009, the Company has an existing and operating collegial management body - the audit committee, elected by the shareholders. The Audit Committee shall operate in accordance with the rules of procedure of the Audit Committee. During the General Meeting of Shareholders held in 2019, the shareholders appointed two elected independent members of the Board to the Audit Committee and authorized the Board of the Company to appoint members to the Audit Committee in the future.

Members of the Management Bodies

Name. surname	Position	Amount of shares available in units	Share of the capital available In percentage	Share of votes In percentage
BOARD
Aleksey Kovalchuk	Chairman of the Board of Snaige AB
Oleg Tsarkov	Member of the Board of Snaige AB
Konstantin Kovalchuk	Member of the Board of Snaige AB
Anna Korneeva	Member of the Board of Snaige AB
ADMINISTRATION (Administrative Manager, Chief Accountant)
Mindaugas	Managing Director of Snaigė AB
Vytautas Adomaitis	Chief of the Accounting and Finance Department of Snaige AB

Position, names and data with regard to the share of the issuer's authorized capital available

Information about start date and end date of the office term of each member or the management body

Name	Start date of the Office term	End date of the Office term
BOARD
Aleksey Kovalchuk	14-12-2011	till 2023 GMS
Oleg Tsarkov	30-04-2015	till 2023 GMS
Konstantin Kovalchuk	30-04-2018	till 2023 GMS
Anna Komeeva	15-05-2019	till 2023 GMS
	ADMINISTRATION (Managing Director and Chief / accountant)
Mindaugas Sologubas 21-09-2019		Term less agreement (Snaige AB Financial director 23-09-2014 - 20-09-2019)
Vytautas Adomaitis 03-10-1983		Term less agreement

Name	Name of organisation, position	Share of the capital and votes available in other companies, in %
Aleksey Kovalchuk	Does not participate in other Lithuanian companies activities and interests	1
Oleg Tsarkov	Does not participate in other Lithuanian companies activities and interests
Konstantin Kovalchuk	Does not participate in other Lithuanian companies activities and interests
Anna Komeeva	Does not participate in other Lithuanian companies activities and interests
	Member of the board of Almecha UAB	1
Mindaugas Sologubas	Chairman of the board of Association EPA
	Managing director of Verslo Architektūra UAB	100%
Vytautas Adomaitis	Does not participate in other Lithuanian companies activities and interests

Information on the management bodies involvement of other companies, institutions and organizations

Information about benefits and loans granted to the members of the management bodies.

No loans or benefits were granted to the members of the management bodies during this period.

INFORMATION ABOUT THE ISSUER'S BUSINESS

According to unaudited consolidated data, the company reached almost 12 million in the first half of 2022. EUR turnover, i.e. 29 percent lower than in the same period last year. The company suffered a 1.6 million EUR unaudited consolidated EBITDA loss.

Ongoing war in Ukraine and the rising cost of resources and transport negatively affected the company's results. The company has lost Ukraine, one of the most important markets for its production. The war also negatively affected other AB SNAIGE markets, such as central and western Europe. Sales have significantly or even stopped. The uncertainty of the situation prompted many of the company's customers to postpone their development plans.

To ensure continuity of operations, the company prepared a restructuring plan for the company's operations and started the restructuring process, which became effective on September 20. According to the courts assessment, the prospects of the company's activities in the draft restructuring plan led to the company has real opportunities to restore solvency, which is why it was allowed to restructure.

The company continues to operate, manufactures refrigerators, develops its new line of industrial refrigeration products and does not intend to stop. The company pays taxes to the state and settles with employees on time. The company is one of the largest employers in the city and district of Alytus, provides orders to many Lithuanian company pays the Lithuanian state about 3 million. EUR in taxes annually.

AB Snaige exported 93% of its production in the first half of this year. Germany, the Czech Republic, Italy and Austria were the most significant company's sales markets.

Information about Company's employees

The main information about the employees of Snaige AB and its subsidiaries employees is presented in the table below:

	January - June of 2022		January - June of 2021
Employees group	Average number of employees	Average monthly salary, EUR	Average number of employees	Average monthly salary, EUR*
Administrative employees (with executive officers)	110	1,823	117	1,786
Factory workers	386	918	426	879
In total	496	1,118	543	1,083

Information about the subsidiary companies of the issuer

On 30 June 2022, the Snaige AB group consisted of the following company of the group Snaige AB subsidiary companies Snaige-Ukraine TOB, Almecha UAB. The main information about the Group's subsidiary companies presented in the table below:

	SNAIGE-UKRAINE TOB	ALMECHA UAB
Registration date, head-office address	Registration date: November 2002. Address: Grushevskogo str. 28- 2a/43, Kyiv, Ukraine	Registration date: November 2006. Address: Pramonės str. 6, Alytus, Lithuania
Type of activities	Sales and marketing services	Production of other equipment and machinery
Share of the authorized capital available to Snaige AB, %	99%	100%
The authorized capital, EUR	5.347	398.978
Share of the authorized capital unpaid by the issuer	Fully paid	Fully paid

Transactions with the related parties

The information about related party transactions is revealed in the 28th note of the consolidated financial statemts.

SIGNIFICANT EVENTS IN THE ACTIVITIES OF THE ISSUER

25-02-2022

The increase in sales for the three quarters did not compensate for the losses caused by higher raw materials, energy and transport prices.

According to unaudited consolidated data, AB SNAIGE reached almost LTL 33.5 million in 2021. EUR turnover, i.e. 14 percent higher than the same period last year.

However, more extensive sales did not compensate for increased costs due to higher raw materials, energy, and transport prices. Last year the company earned 0.5 million EUR unaudited consolidated EBITDA.

According to Mindaugas Sologubas, General Manager of AB SNAIGE, the rise in prices of raw materials, their shortage and the disruption of the supply chain have negatively affected the quality of sales and the company.

"Due to the lack of raw materials and their delivery delays, we were unable to place some orders on time. We often have produced what we could, rather than what we needed," said M. Sologubas. -"Late payments by some of our customers increased the shortage of working capital. In addition, rising energy costs aggravated the situation in the fourth quarter of last year. It has been increased several times and has become a daunting burden. All of this directly affected the company's results."

However, despite the challenges and difficulties, AB SNAIGE is working stably, trying to survive this difficult stage and developing new products and even entering new categories.

In 2021 the company continued to develop its professional and commercial equipment product lines. AB SNAIGE has developed new refrigerators for medical purposes that meet the highest industry requirements, including the DIN13277 standard.

Preparations are also underway to produce industrial refrigerators for professional kitchens. The company has already made the first examples of these products.

According to Mindaugas Sologubas, professional and commercial equipment is a strategic direction of the company and in the future, sales in this segment will account for almost half of SNAIGE's total sales.

In 2021, AB SNAIGE exported to almost 30 countries in Europe, Asia and Africa. Exports accounted for 91 percent total turnover of the company's most significant foreign sales markets in 2021 were Germany (25%), Ukraine (11%), Norway (7%), Austria (7%) and the Czech Republic (6%).

Sekenora Holdings Limited, a Cypriot investment company, is the main shareholder of SNAIGE Group owns two subsidiaries TOB SNAIGE UKRAINA and UAB ALMECHA.

28-02-2022

Information on the impact of the problematic political situation

AB Snaige, the only manufacturer of refrigerators in the Baltic States, has temporarily suspended the activities of its subsidiary ZAO Snaigė Ukraina. The investment in this company was 5 th. Eur. According to unaudited data, the company's revenue from sales in Ukraine amounted to 3.5 million. EUR, which is 11 percent total turnover of the company. It's also reflected in the company's consolidated financial statements for 2021.

Currently, it is difficult to reasonably estimate the impact on the financial results due to various uncertainties. However, AB Snaige exports its products to more than 30 European, Asian and African therefore, the company hopes to compensate for lost sales in Ukraine in other markets.

07-04-2022

Convocation of the ordinary General Meeting of Shareholders of Snaige AB

On 29 April 2022 the ordinary General Meeting of Shareholders of Snaige AB (hereinafter, the "Meeting"), the address of head office Pramones str. 6, Alytus, the company code 249664610 (hereinafter, the "Company") is convened.

The place of the meeting - at AB "Snaige" office, at the address Kareiviu str. 6 (50 floor), Vilnius, Lithuania.

The Meeting commences - at 10 a.m. (registration starts at 9.45 a.m.)

Based on the COVID-19 morbidity rates in the country and the Company's concern for the health of its shareholders and employees, shareholders are invited to vote on the issues on the General Meeting of Shareholders by submitting all General Voting Ballots to the Company in advance. It is recommended to firstly consider the possibilities of receiving the General Voting Ballot and advance voting remotely, and to come to the Company's office only in exceptional cases when there is no other possibility.

The Meeting's accounting day - 22 April 2022 (the persons who are shareholders of the Company at the end of accounting day of the General Meeting of Shareholders or authorized persons with whom shareholders concluded the agreements on the disposal of voling right, shall have the right to attend and vote at the General Meeting of Shareholders).

The Board of directors of the Company initiates and convenes the meeting.

Agenda of the Meeting and drafts of resolutions:

1. Consolidated annual report of "Snaige" AB on the company's activity for 2021;

Taken for information the consolidated annual report of "Snaige" for 2021. A decision on approval of the remuneration statement for year 2021, which is in the annual report, could be taken at the choice of the shareholders;

1. Auditor's conclusion on the company's financial statements for 2021;

Taken for information the auditor's conclusion on the company's financial statements for 2021.

1. Approval of the set of financial statements of the company for 2021;

To approve the set of financial statements of the company for 2021.

4.Approval of distribution of profit (loss) of "Snaige" AB for 2021;

To approve the distribution of profit (loss) of "Snaige" AB for 2021.

16-04-2022

SNAIGE AB information for the ordinary General Shareholders Meeting

SNAIGE AB is providing the audited Company's financial statements for 2021, the Auditor's report, the annual report and the project of distribution of profit (loss) for the ordinary General Shareholders Meeting of the Company which will be held on 29 April 2022.

The Company's shareholders are invited to participate in the ordinary General Shareholders Meeting and vote on the agenda items in writing, by filling voting ballot in advance and submitting to the Company (by address Pramones str. 6, Alytus, Lithuania. The document confirming the right to vote must also be sent together with voting ballot. Based on the COVID-19 morbidity rates in the country it is recommended to firstly consider the possibilities of receiving the General Voting Ballot and advance voting remotely, and to come to the Company's office only in exceptional cases when there is no other possibility.

According to audited consolidated data, AB SNAIGE reached almost LTL 33.5 million in 2021 EUR turnover, i.e. 14 percent higher than the same period last year. However, more extensive sales did not compensate for increased costs due to higher raw materials, energy, and transport prices. Last year the company earned 0.5 million EUR unaudited consolidated EBITDA.

According to Mindaugas Sologubas, General Manager of AB SNAIGE, the rise in prices of raw materials, their shortage and the disruption of the supply chain have negatively affected the quality of sales and the final result of the company.

"Due to the lack of raw materials and their delivery delays, we were unable to place some orders on time. We often have produced what we could, rather than what we needed," said M. Sologubas. -"Late payments by some of our customers increased the shortage of working capital. In addition, rising energy costs aggravated the situation in the fourth quarter of last year. It has been increased several times and has become a daunting burden. All of this directly affected the company's results."

However, despite the challenges and difficulties, AB SNAIGE is trying to survive this difficult stage and developing new products and even entering new categories.

In 2021 the company continued to develop its professional and commercial equipment product lines. AB SNAIGE has developed new refrigerators for medical purposes that meet the highest industry requirements, including the DIN13277 standard.

The company has developed and manufactured the first examples of industrial refrigerators for professional kitchens. Their series production will start in 2022.

According to Mindaugas Sologubas, professional and commercial equipment is a strategic direction of the future, this segment's sales will account for all sales of SNAIGE. The company plans to expand its medical refrigeration equipment further: there will be more refrigerator models for storing medicines and we will introduce refrigerators to laboratories. There will be more modifications and a line of professions.

In 2021, AB SNAIGE exported to almost 30 countries in Europe, Asia and Africa. Exports accounted for 91 percent total turnover of the company's most significant foreign sales markets in 2021 were Germany (25%), Ukraine (11%), Norway (7%), Austria (7%) and the Czech Republic (6%).

Sekenora Holdings Limited, a Cypriot investment company, is the main shareholder of SNAIGE Group owns two subsidiaries TOB SNAIGE UKRAINA and UAB ALMECHA.

26-04-2022

Convocation of the ordinary General Meeting of Shareholders of Snaige AB

Correction: the format of the annex has been adjusted. Annual reports are provided in the new ESEF zip format. On 29 April 2022 the ordinary General Meeting of Shareholders of Snaige AB (hereinaffer, the address of head office Pramones str. 6, Alytus, the company code 249664610 (hereinafter, the "Company") is convened.

The place of the meeting - at AB "Snaige" office, at the address Kareiviu str. 6 (5th floor), Vilnius, Lithuania.

The Meeting commences - at 10 a.m. (registration starts at 9.45 a.m.)

Based on the COVID-19 morbidity rates in the country and the Company's concern for the health of its shareholders and employees, shareholders are invited to vote on the issues on the General Meeting of Shareholders by submitting all General Voting Ballots to the Company in advance. It is recommended to firstly consider the possibilities of receiving the General Voting Ballot and advance voting remotely, and to come to the Company's office only in exceptional cases when there is no other possibility.

The Meeting's accounting day - 22 April 2022 (the persons who are shareholders of the Company at the end of accounting day of the General Meeting of Shareholders or authorized persons with whom shareholders concluded the agreements on the disposal of voting right, shall have the right to attend and vote at the General Meeting of Shareholders).

The Board of directors of the Company initiates and convenes the meeting.

Agenda of the Meeting and drafts of resolutions:

1. Consolidated annual report of "Snaige" AB on the company's activity for 2021;

Taken for information the consolidated annual report of "Snaige" for 2021. A decision on approval of the remuneration statement for year 2021, which is in the annual report, could be taken at the choice of the shareholders;

1. Auditor's conclusion on the company's financial statements for 2021;

Taken for information the auditor's conclusion on the company's financial statements for 2021.

1. Approval of the set of financial statements of the company for 2021;

To approve the set of financial statements of the company for 2021.

1. Approval of distribution of profit (loss) of "Snaige" AB for 2021;

To approve the distribution of profit (loss) of "Snaige" AB for 2021.

SNAIGE AB, company code 249664610, Pramones str. 6, Alytus Lithuania CONSOLIDATED INTERIM FINANCIAL STATEMENTS AND CONSOLIDATED INTERIM REPORT FOR SIX MONTHS PERIOD ENDED 30 JUNE 2022

(All amounts are in EUR thousand unless otherwise stated)

29-04-2022

Resolutions of Snaige AB the General Meeting of Shareholders

The General Meeting of shareholders of Snaige AB was held on 29 April 2022.

The following resolutions were made on the meeting:

1. Consolidated annual report of "Snaige" AB on the company's activity for 2021;

Taken for information the consolidated annual report of "Snaige", shareholders approved remuneration report;

1. Auditor's conclusion on the company's financial statements for 2021;

Taken for information the auditor's conclusion on the company's financial statements for 2021 year;

1. Approval of the set of financial statements of the company for 2021;

Approved the set of consolidated and the company's financial statements for 2021 year;

1. Approval of distribution of profit (loss) of "Snaige" AB for 2021;

Approved the distribution of profit (loss) of "Snaige" AB for 2021 year:

Article	EUR
Non-distributed profit (loss) at the end of the last financial year	(10,080,925)
Net result - profit (loss) of financial year	(2,018,571)
Profit (loss) for the reporting financial year not recognized in the income statement	845,784
Distributable result- profit (loss) of financial year	(11,253,712)
Transfers from reserves:	673,581
For the acquisition of own shares
Transfers from mandatory reserve	673,581
Distributable profit	(10,580,131)
Distribution of profit	673,581
To reserve foreseen by law	673,581
Non-distributed result - profit (loss) at the end of financial year (11,253,712)

29-04-2022

Snaigé AB annual information for the year 2021

Snaige, AB is presenting annual consolidated and Company's financial statements for the year 2021 (consolidated and Company's financial statements together with independent auditor's report, social responsibility report, confirmation of the responsible persons) approved by the Annual General Meeting shareholders on 29 April 2022.

27-05-2022

The war affected the first quarter results of AB SNAIGE.

According to unaudited consolidated data, in the first quarter of 2022, the Company reached almost 6 million EUR turnover, i.e. 20 percent less compared to the same period last year. The Company incurred a 0.7 million EUR unaudited consolidated EBITDA loss.

According to Mindaugas Sologubas, General Manager of AB Snaige, the results of the first quarter were directly and indirectly affected by the war. "We lost one of the most important markets - Ukraine, for obvious reasons we transported very few refrigerators to this country. In January-February, even before Russia invaded Ukraine, sales were very low, apparently, people no longer cared much about household appliances" said M. Sologubas. "March was dead in terms of sales, most customers, even in Western Europe, stopped their orders, and everyone was waiting for what would happen next. I would say that the sales result achieved under these conditions can be assessed as satisfactory."

The price increase of raw materials, transport, and energy resources also had a significant impact on the Company's negative results. With the outbreak of the war, these resources became even more expensive, supply chains became even more disrupted, and transport services began to be scarce.

"Due to the lack of raw materials and their delivery delays, we were unable to place some orders on time. We have often been forced to produce what we could produce rather than what we needed to" said M. Sologubas. Late payments by some customers increased the shortage of working capital. The situation has been exacerbated by rising energy costs. They have risen several times and became a daunting burden for the Company. All of this had a negative impact on the Company's results.

However, despite the difficulties, the Company continues to introduce its new professional and medical products to European markets and develops new projects.

According to Mindaugas Sologubas, the Company has chosen this line of business because it has many years of experience in the refrigeration business, experienced specialists, and the necessary technical base for the development and production of such products. The Company has been urged by many of its customers to get involved in this area. In addition, the business of professional and medical devices is more profitable and less competitive. The Company planned that professional and medical refrigeration appliances will account for more than half of the Company's portfolio. However, establishment in this business category is unexpectedly delayed due to the above-mentioned circumstances.

In the first quarter of this year, AB Snaige exported 95% of its production. The largest sales markets were Germany, the Czech Republic, Italy, and Austria.

Sekenora Holdings Limited, a Cypriot investment company, is the main shareholder of SNAIGE Group owns two subsidiaries: TOB SNAIGE UKRAINA and UAB ALMECHA. The Company has nothing to do with the Russian company Polair, as is erroneously stated in other sources.

27-05-2022

Convocation of the Extraordinary General Meeting of the Shareholders of Snaige AB

On 23 June 2022 the Extraordinary General Meeting of Shareholders of Snaige AB, the address of head office Pramones str. 6, Alytus, the company code 249664610 (hereinafter, the "Company") is convened (hereinafter, the "Meeting").

The place of the meeting -at AB "Snaige" office, at the address Kareiviu str. 6, Vilnius, Lithuania.

The Meeting commences - at 10 a.m. (registration starts at 9.45 a.m.).

The Meeting's accounting day – 16 June 2022 (the persons who are shareholders of the Company at the end of accounting day of the General Meeting of Shareholders or authorized persons with whom shareholders concluded the agreements on the disposal of voling right, shall have the right to attend and vote at the General Meeting of Shareholders).

The meeting is being initiated and convened by the decision of the Company.

Agenda and draft decisions of the Meeting:

The agenda question 1. Coverage of the Company's losses by shareholders' contributions.

Draft of the decision: With reference to the fact that as per the balance sheet of the Company of 31 March 2022, the total equity of the Company is equal to EUR 2575039 and is lower than ½ of the Company, and pursuant to Articles 38(3) and 59(10)(2) of the Law on Companies of the Republic of Lithuania, to cover a part of the Company's losses equal to EUR 1,000,000 by additional contributions of shareholders of the Company.

The agenda question 2. Approval of the project of the Company's restructuring plan.

Draft of the decision: To approve the project of the Company's restructuring plan.

Additional information regarding the agenda question 2:

To avoid the temporary difficulties encountered by the Company and possible impact on the continuity of its operations, and according to Law on Insolvency of Legal Persons of the Republic of Lithuania - the Board of the Company proposes to initiate the restructuring of the Company.

The Company's operations were adversely affected by the prolonged military conflict in Ukraine: the Company lost one of its largest markets, Ukraine, and trade has slowed in almost all of the Company's markets. Last year, the main raw materials and materials became more expensive, this year they became even more expensive. The increase in the cost of transport and the significant lack of this service also contributed.

Therefore, not wanting to risk the future of a viable and potential Company, to ensure jobs and social guarantees for its employees, the Board of the Company decided to initiate the restructuring process of the Company.

This will allow the Company to breathe a sigh of relief, use its working capital more efficiently and achieve its strategic goal of becoming a manufacturer of professional and medical refrigeration equipment. For several years now, AB SNAIGE has been consistently pursuing this goal: it has developed and started manufacturing storage refrigeration units for cold rooms, and pharmaceutical refrigerators (one of which is DIN-certified), and this year it has started serial production of refrigerators for professional kitchens.

AB SNAIGE has chosen this line of business because it has many years of experience in the refrigeration business, experienced specialists, and the necessary technical base for the development and production of such products. The Company has been urged by many of its customers to get involved in this area. In addition, the business of professional and medical devices is more profitable and less competitive. The Company planned that medical refrigeration appliances will account for more than half of the Company's portfolio.

However, establishment in this business category took an unplanned period due to the above-mentioned circumstances.

Following the start of the restructuring process, the Company would continue to operate and meet its obligations to its employees and customers. As before, the Company will continue to pay taxes to the Social Security and the state on time.

11-06-2022

Information for the Extraordinary General Meeting of Shareholders of Snaige AB

Provided is the additional information for the Extraordinary General Meeting of Shareholders (he Meeting) of Snaige AB (hereinafter - Company) which is convened on June 23rd, 2022 10 a.m.

on the agenda item No. 2 .: Regarding the approval of the Company's restructuring plan.

The Company's shareholders are invited to participate in the Meeting and vote on the agenda items in writing, by filling voting ballot in advance and submitting to the Company (by address Pramones str. 6, Alytus, Lithuania). The document confirming the right to vote must also be sent together with voting ballot. Based on the COVID-19 morbidity rates in the country it is recommended to firstly consibilities of receiving the General Voting Ballot and advance voting remotely, and to come to the Company's office only in exceptional cases when there is no other possibility.

23-06-2022

Resolutions of Snaige AB the Extraordinary Meeting of Shareholders

The Extraordinary Meeting of Snaige AB (further - the Company) was held on 23 June 2022.

The following decisions on the agenda questions were adopted at the Extraordinary Meeting of the shareholders. The agenda question: 1. Coverage of the Company's losses by shareholders' contributions.

The decision:

1. Disapprove of covering Company's losses by shareholders' contributions. The agenda question: 2. Approval of the project of the Company's restructuring plan. The decision:

2. Approve the project of the Company's restructuring plan.

01-07-2022

AB SNAIGE applied to the court for the initiation of a restructuring case

AB "Snaige" (the "Company") informs that, in order to implement the restructuring according plan of the Company approved by the extraordinary general meeting of the Company's shareholders on 23 June 2022, on 1 July 2022 the Company applied to the Kaunas District Court (the "Court") with a request to initiate the Company's restructuring case.

After the court decides to initiate the Company's restructuring case, the Company's restructuring plan should be coordinated with the Company's creditors specified by LILE and submitted to the Court for approval within the next 6 months. The Court should then issue a ruling on the approval of the restructuring plan within the following 14-day period. The Company will inform about the further most significant decisions of the restructuring process of the Company separately.

15-07-2022

Notice to shareholders

Dear Shareholders,

we inform you that on 14.07.2022 the District Court of Kaunas in civil case no. eB2-1226-555/2022 adopted a ruling, to accept the statement of the General Manager of AB "Snaige" Mindaugas Sologubas regarding the filing of a restructuring case of AB "Snaige". The civil case is intended to be examined at a court session in the order of the written process in 2022 on September 6 at 9:00 a.m., the date, time, place, and composition of the court will be announced on a special website.

08-09-2022

The Kaunas District Court made a decision to initiate the restructuring case of AB SNAIGE

On 2022 September 9th The Kaunas District Court made a decision to initiate the restructuring case of AB SNAIGE and appointed as the restructuring administrator the JSC Įmonių bankroto administravimo ir teisinių paslaugų biuras. The Kaunas District Court has set a deadline of thirty days from the date of publication of the a restructuring case on the website of the supervisory authority, during which the creditors have the right to submit their claims and supporting documents to the appointed restructuring administrator, as well as indicate how the fulfilment of these claims is ensured. Also, the court set a deadline of four months, calculated from the date of entry into force of the ruling, to prepare and submit to the court the restructuring plan of AB SNAIGE.

According to the AB SNAIGE General Manager Mindaugas Sologubas, such court decision was expected. "The court's decision to initiate a restructuring case gives the company an opportunity to straighten up, solve the problems it faced due to the war, raw materials and energy crisis, avoid bankruptcy and settle with its creditors," says M. Sologubas. "Now the company's immediate goal is to prepare a restructuring plan that meets of creditors and the company and to approve it in the court."