PANEVEZIO STATYBOS TRESTAS AB Consolidated Interim Financial Statements and Consolidated Interim Report for the First Half of 2020 (UNAUDITED)

28 August 2020 Panevezys

STATEMENT OF EXECUTIVE OFFICERS OF THE COMPANY

Hereby we confirm that based on the information available to us, the interim financial statements of the Company and the Group provided for the six months of the year 2020 prepared in accordance with the International Financial Reporting Standards are true and show the assets, liabilities, financial position, profit or loss and cash flows of Panevezio statybos trestas AB and Panevezio statybos trestas AB Group in a correct manner, and that the review of business development and performance is indicated correctly in the interim report.

Egidijus Urbonas Managing Director Panevezio statybos trestas AB

Danguole Sirviskiene

Chief Accountant Panevezio statybos trestas AB

AB "Panevėžio statybos trestas" P. Puzino g. 1, LT-35173 Panevėžys Įmonės kodas 147732969 PVM mokėtojo kodas LT477329610 Tel. +370 45 505 503 Faks. +370 45 505 520 EI. paštas: [email protected] www.pst.lt

AB Luminor Bank A/s LT694010041200090221 AB SWEDBANK A/s LT947300010000074994

1. Accounting period covered by the Semi-Annual Report

This Consolidated Report for the half-year of 2020 covers the period from 1 January 2020 till 30 June 2020.

2. The main data about the Company (the issuer)

Name of issuer	Panevezio statybos trestas AB
Authorised capital	4,741,500 Euros
Address of registered office	P. Puzino Str. 1, LT-35173 Panevezys, Lithuania
Telephone	(+370 45) 505 503
Hax	(+370 45) 505 520
Legal-organisational form	Public Limited Liability Company
Date and place of registration	30 October 1993, Panevezys City Board
Registration No.	AB 9376
Register code	147732969
VAT code	LT477329610
LEI code	52990000VPCGEWIDCX35
Administrator of Legal Entity Register	State Enterprise Centre of Registers
E-mail	pst(a)pst.lt
Website	www.pst.lt

3. Nature of the main operation of the issuer

The main operation area of the company and its subsidiaries (the Group) is designing and construction of various buildings, structures, equipment and communications and other objects in Lithuania and abroad, sale of building materials and real estate development. Furthermore, the company is engaged in rent of premises and machinery.

Vision

To become a reputed construction company in Europe, which uses advanced technologies, ensures quality and agreed work completions terms.

Mission

While honestly fulfilling our obligations, promoting long-term cooperation and proposing mature solutions in construction, we ensure profitable and sustainable business development.

Target

To retain the leading position in the construction market by creating the added-value to our clients, shareholders and employees.

4. The companies included in the Group of Panevezio statybos trestas AB

As of 31 June 2020, the Group of Panevezio statybos trestas AB included the following companies:

Subsidiary company	Registration date, register administrator	Company code	Registered address	Telephone, fax, e-mail, website	Portion of controlled shares (per cents)
Skydmedis UAB	17 June 1999 State Enterprise Centre of Registers	148284718	Pramones Str. 5, Panevezys	Tel. (+370 45) 467626 Fax (+370 45) 460259 info a skydmedis.lt www.skydmedis.lt	100
Metalo meistrai UAB	16 June 1999 State Enterprise Centre of Registers	148284860	Tinklu Str. 7, Panevezys	Tel. (+370 45) 461677 Fax (+370 45) 585087 [email protected] www.metalomeistrai.lt	100
Vekada UAB	16 May 1994 State Enterprise Centre of Registers	147815824	Marijonu Str. 36, Panevezys	Tel. (+370 45) 461311 Fax (+370 45) 461311 [email protected] www.vekada.lt	95.6
Alinita UAB	8 December 1997 State Enterprise Centre of Registers	141619046	Tinklu Str. 7, Panevezys	Tel. (+370 45) 467630 Fax (+370 45) 467630 [email protected] www.alinita.lt	100
Kingsbud Sp.z 0.0.	11 August 2010 District Court in Bialystok, XII Economic Department of National Court	200380717	A. Patli Str. 12, 16-400 Suwalki, Poland	Tel. (+48 875) 655 021 Fax (+48 875) 655 021 biuro(@kingsbud.pl www.kingsbud.lt	100
PS Trests SIA	22 May 2000 Centre of Registers, Republic of Latvia	40003495365	Skultes Str. 28, Skulte, Marupes Parish, Riga Region, Latvia	Tel. +371 29525066	100
Teritorija OOO	3 June 2013 Kaliningrad Obl. Federal Tax Service Inspection No. 12	3528202650	Lunacharskogo Drive 43-27. Cherepovets, Bologda Obl., Russian Federation	Tel. +7 9097772202 Fax +7 9217234709 baltevromarketao a mail.ru maslena] 1 @mail.ru	87.5
Seskines projektai UAB	9 November 2010 State Enterprise Centre of Registers	302561768	Verkiu Str. 25C, Vilnius	Tel. (+370 5) 2102130 Fax (+370 5) 2102131 [email protected] www.psti.lt	100
Ateities projektai UAB	25 April 2006 State Enterprise Centre of Registers	300560621	Tel. (+370 5) 2102130 Verkiu Str. 25C, Fax (+370 5) 2102131 [email protected] Vilnius www.psti.lt		100
PST investicijos UAB	23 December 1998 State Enterprise Centre of Registers	124665689	Verkiu Str. 25C, Vilnius	Tel. (+370 5) 2102130 [email protected] www.psti.lt	68
Tauro aparta- mentai UAB	23 October 2018 State Enterprise Centre of Registers	304937621	Verkiu Str. 25C-1, Vilnius	Tel.(+370 610) 09222 [email protected]	100
Hustal UAB	11 December 2018 State Enterprise Centre of Registers	304968047	Tinklu Str. 7, Panevezys	Tel.(+370 45) 461677 Fax (+370 45) 585087 [email protected]	100

Registration date, Subsidiary register company administrator		Company code	Registered address	Telephone, fax, e-mail, website	Portion of controlled shares (per cents)
Aliuminio fasadai UAB	2 January 2020 State Enterprise Centre of Registers	305412441	Pramones Str.5, Panevezys	Tel. +370 686 32727 gamyba(@pst.It	100

Subsidiary companies of PST investicijos UAB:

ISK Baltevromarket AU	13 July 2001 Independent Registration Company AB - Administrator of shareholders' register	3906214631	Rostovskaja Str. 5-7. Kaliningrad, Kaliningrad Obl., Russian Federation	Tel.+79097772202 baltevromarketao a mail.ru	100
-----------------------------	--------------------------------------------------------------------------------------------------------	------------	-------------------------------------------------------------------------------------	---------------------------------------------------	-----

5. Contracts with the intermediary of public trading in securities

In 2013, the Company signed the contract with the Financial Brokerage Company Finasta AB for securities accounting and provision of services related with securities accounting. On 21 December 2015, the Financial Brokerage Company Finasta AB had been rearranged by way of merge with Stauliu bankas AB, which took over all assets, rights and liabilities of the Financial Brokerage Company Finasta AB from the mentioned date.

6. Data on trading in securities of the issuer in regulated markets

The ordinary registered shares of Panevezio statybos trestas AB have been on the Official Trading List of Nasdaq Vilnius AB (company symbol PTRIL) since 13 July 2006.

Share type	Number of shares,	Par value,	Total par value,	Emission code
	pcs.	Euros	Euros	ISIN
Ordinary registered shares ORS)	16,350,000	0.29	4,741,500	LT0000101446

Comparison of PTRIL Panevezio statybos trestas and OMX Vilnius Benchmark GL indexes for the First Half of 2020

Company share price variation at the Stock Exchange Market Nasdaq Vilnius for the period covering 2016 through the First Half of 2020 (Euros)

Company share price variation at the Stock Exchange Market Nasdaq Vilnius for the First Half of 2020 (Furos)

PIRIL 01 01 2020 - 30.06.2020 0.62 € -0.16 (-20.51%)

Table 1. Information on the company share price at the Stock Exchange Market Nasdaq Vilnius (Euros):

Indicator	6 months 2020	2019	2018	2017	2016
Highest price, Eur	0.85	0.878	0.99	1.34	1.08
Lowest price, Eur	0.52	0.71	0.75	0.85	0.845
Share price as of the end of reporting period, Eur	0.62	0.75	0.752	0.916	0.94
Turnover, pcs.	1,237,742	989,685	1,596,044	2,854,251	1,565,210
Turnover, min. Eur	0.814	0.77	1.41	3.08	1.49
Capitalization, mln. Eur	1.014	12.26	12.3	14.98	15.37

7. Authorised capital of the issuer and its structure

As of 30 June 2020, the authorised capital of the company amounted to 4,741,500 Euros divided into 16,350,000 ordinary registered shares (ORS), the nominal value of each share being 0.29 Euros. All shares are non-certificated and fully paid. The proof of ownership is the record in the securities accounts. On 30 June 2020, the total number of shareholders was 1545.

Table 2. The shareholders holding or controlling more than 5 per cents of the authorised capital of the company:

Full name of a shareholder (company name, type, headquarter address, company code)	Number of ordinary registered shares held by a shareholder under ownership right (pcs.)	Percentage of the authorized capital held	Percentage of votes granted by the shares held under ownership right
Panevezio keliai AB S. Kerbedzio Str. 7, Panevezys Company code: 147710353	8,138,932	49.78	49.78
Clients of Swedbank AS Liivalaia 8, 15040 Tallinn, Estonia	1,253,548	7.67	7.67
Freely negotiable shares	6,957,520	42.55	42.55

None of the shareholders of the issuer has any special control rights. All shareholders have equal rights prescribed by Section 4 of the Law on Companies of the Republic of Lithuania.

The number of shares carrying votes at the General Meeting of Panevezio statybos trestas AB is 16,350,000.

8. Fair review of position, performance and development of the Company and the Group, description of the principal risks and uncertainties the company faces

Key events of the reporting period

2 January 2020. The aluminium structure production shop at Pastatu apdaila Branch of Panevezio statybos trestas AB has been reformed to Aliuminio fasadai UAB. The company produces the most advanced aluminium profile systems, aluminium windows and doors, facades. There are more than 30 work places created at the company, the investments amount to 800 thousand Euros.

10 March 2020. The investigation of the appeal by Panevezio statybos trestas AB on the judgement of the Vilnius Regional Administrative Court dated 14 May 2018 in the administrative case No. el-1443-1063/2018 on the decision of the Competition Council No. 25-11(2017) is being started at the Supreme Administrative Court of Lithuania at Zygimantu Str. 2, 01102 Vilnius. Any information on the Supreme Administrative Court of Lithuania will be published additionally.

29 April 2020. The General Meeting of Shareholders, which made the decision to pay dividends in the amount of 0.03 Euros per share, had been convened.

26 May 2020. The Ad Hoc Arbitration that took place in Sweden issued the award ending the more than two-year long dispute on the quality of products delivered by Metalo meistrai UAB to the Swedish company Strängbetong AB. The Stockholm Arbitration Court denied the claim advanced by Strangbetong AB in full and found the case unproven for the reason that the products by Metalo meistrai UAB had been acceptable and of good quality.

3 June 2020. The Judicial Panel of the Supreme Administrative Court of Lithuania following the written proceedings on appeal at the court session conducted the hearing of the administrative case based on the appeals by the applicants Panevezio statybos trestas AB and Active Construction Management UAB (the former name Irdaiva UAB), in respect of which the bankruptcy proceedings have been initiated, on the judgement of the Vilnius Region Administrative Court dated 14 May 2018 in the administrative case based on the complaints of Panevezio statybos trestas AB and Irdaiva UAB against the respondent, the Competition Council of Lithuania, on vacation or amendment of the judgement (the parties third interested are Panevezio statybos trestas AB and Irdaiva UAB).

Following Article 144 (1) of the Law on Administrative Proceedings of Lithuania the Judicial Panel has rendered the judgement to deny the applicant Panevezio statybos trestas AB and the applicant under bankruptcy Active Construction Management UAB (the former name Irdaiva UAB) as unreasonable, and to leave the judgement of the Vilnius Region Administrative Court dated 14 May 2018 unaffected.

19 June 2020. Dalius Gesevicius, Managing Director of Panevezio statybos trestas AB, leaves the company by the mutual decision. Based on the decision taken by the Board, from June 23rd the position of Managing Director will be taken over by Egidijus Urbonas who has been managing the PST Group - Metalo meistrai UAB and Hustal UAB.

16 July 2020. Panevezio statybos trestas AB has signed the contract for the office building in Mazeikiai District. The total area of the buildings to be renovated is 7300 square meters. The project completion is scheduled for summer 2021.

21 July 2020. Panevezys City Municipality and Panevezio statybos trestas AB have signed the Construction Contract Agreement for reconstruction of Senvage territory and its approaches. After the project implementation is completed, the public space covering the area of 9.03 ha will be arranged and adapted for community activities. The value of the construction works amounts to 5.7 mln. Euros, funding will be provided according to the Operational Program for the European Union Funds Investments for 2014-2020 Integrated Development of Large Cities. Project duration - 16 months from the contract effective date.

August 2020. The State Tax Inspectorate under the Ministry of Finance assented to payment of the fine imposed by the resolution No. 2S-11(2017) dated 20 December 2017 by the Competition Council and the interest to be made in equal instalments over the period of eight years.

Risk factors related to the company's operation:

In performance of business, both the Company and the Group face various types of risks: legal regulation, severe competition, shortage of qualified labour, variation in the value of the Russian Rouble, cyclical nature of economy, macroeconomic factors, damping. However, only a few of them may have significant impact on the performance results of the Group and the Company. The main factors that create business risk for the Company and the Group are competition in the construction market and changes in the demand for construction services. The demand for construction services also depends heavily on the volume of investments and financing received from the EU structural funds. Increase and variation of material and service prices make the process of the project budgeting and possibility to complete the already started projects based on the planned costs more difficult. This results in extra risk for performance of fixed price construction contracts and reduces profitability of projects. Furthermore, activity of the Company and the Group is influenced by the economic cycles) in Lithuania and the countries where the Group companies operate. There is still some uncertainty about the trends in global economic development as well as regional and global crisis in future.

Information on the types of financial risk management is provided in the Notes to the Separate Financial Statements (Note 4) and the Notes to the Consolidated Financial Statements (Note 4).

Legal uncertainties are provided in the Notes to the Separate Financial Statements (Note 27) and the Notes to the Consolidated Financial Statements (Note 27).

COVID-19 impact:

On 16 March 2020, the Government of the Republic of Lithuania officially announced quarantine throughout the country, which lasted until 16 June 2020. In response to the situation, Panevezio statybos trestas AB ir the Group of Panevezio statybos trestas AB has taken all mandatory and recommended precautionary measures to maximally protect the interests of the company's employees and business partners. The management responsibly monitors and evaluates the current situation (especially with regard to payments by the clients, shortage of supplies, order execution), and is ready to react without delay and take appropriate decisions to ensure business continuity.

Due to the restrictions caused by the COVID-19 virus, private and investment construction projects have been in the process of rapid interruption locally. The majority of real estate developers and investors have stopped planned or new projects or refused thereof. As a result of such situation in the construction sector in 2020, the contraction of about 30 percent is being forecasted. The situation has created imbalances and high tensions in the construction market. Most companies cut work costs to survive, retain employees and get new orders, although neither costs not wages decrease. This results in losses.

It is projected that more than one year will be required for recovery of the construction market. The Company was also significantly affected by COVID-19 in 2020. The main factors of COVID-19 having impact on the Company are as follows.

during quarantine, clients have suspended their work, which results in the Company losing income;
the start dates for the work based on the new contracts have been postponed to a further period, and a larger part of their execution have been shifted to the next year;
signing of the awarded contracts have been delayed;
new construction and development projects have been suspended or delayed;
the construction market has contracted.

9. Analysis of financial and non-finance, information related to environment and employee matters

Referring to the unaudited data, over the six months of 2020, the turnover of Panevezio statybos trestas AB amounted to 33.105 mln. Euros, that is by 34.3 per cents lower compared to the six months of the year 2019 when the turnover was 50.414 mln. Euros. In the first half of 2020, the Company incurred the net loss in the amount of 11.697 mln. Euros, whereas over the first half of 2019 the Company made the net profit in the amount of 0.807 mln. Euros. The fine imposed by the Competition Council in the amount of 8.5 mln. Euros and the accrued interest thereof in the amount of 1.4 mln. Euros had the greatest impact on the negative result of the Company. The decrease in the turnover was significantly influenced by the activities suspended by the large client as a result of COVID-19. Furthermore, signing of the awarded contracts and start dates of work have been postponed to a further period due to quarantine, and a larger part of their execution have been shifted to the next year.

The total consolidated revenue of Panevezio statybos trestas AB Group amounted to 37.148 mln. Euros and decreased by 24.7 per cents compared to that for the first half of 2019 when the revenue of the Group had been 49.324 mln. Euros. Over the accounting period the Group incurred the net loss in the amount of 12.648 mln. Euros, whereas over the first half of 2019 the Group made the net profit in the amount of 0.903 mln. Euros.

Over the six months of 2020, EBITDA - earnings before interest, taxes, depreciation and amortization - of the Company was -10.730 mln. Euros with 1.592 mln. Euros over the first half of the year 2019. EBITDA of the Group was -9.473 mln. Euros over the six months of 2020 compared to 1.797 mln. Euros over the first half of 2019.

Income and net profitability variation for the Company:

Income and net profitability variation for the Group:

Group				Company
I half of 2018	I half of 2019	I half of 2020	Items	I half of 2018	I half of 2019	I half of 2020
45,567	49,324	37,148	Revenue	39,208	50,414	33,105
42,475	46,712	34,319	Cost	37,782	48,517	32,726
3,092	2,612	2,829	Gross profit	1,426	1,897	379
6.79	5.30	7.62	Gross profit margin (per cents)	3.64	3.76	1.14
21	-244	-10,202	Typical operating result	-676	- 1	-11,375
0.05	-0.49	-27.46	Typical operating result from turnover (per cents)	-1.72	-0.002	-34.36
3	1,797	-9,473	EBITDA	5	1,592	-10,730
0.01	3.64	-25.50	EBITDA margin (per cents)	0.01	3.16	-32.40
-879	903	-12,648	Net profit	-664	807	-11,697
1.93	1.83	-34.05	Nets profit (loss) margin (per cents)	-1.69	1.60	-35.33
-0.05	0.055	-0.774	Earnings per share (Euros) (EPS) 2	-0.04	0.049	-0.715
-2.42	2.60	-56.09	Return on equity (per cents)(ROE)3	-1.78	231	-51.86
-1.48	1.24	-17.70	Return on assets or asset profitability (ROA)ª	-1.20	1.20	-17.73
-2.30	1.93	-51.45	Return on investments (ROI)3	-1.75	1.77	-49.69
2.38	2.69	1.28	Current liquidity ratio®	2.06	1.79	0.91
1.74	1.39	0.53	Critical liquidity ratio	1.86	1.56	0.83
0.61	0.48	0.32	Equity ratio 8	0.67	0.52	0.34
2.22	2.12	1.38	Book value per share	2.28	2.14	1.38
0.41	0.34	0.45	Ratio of share price and book value (P/BV)10	0.40	0.34	0.45

Table 3. The results of the Company and the Group of Panevezio statybos trestas AB for the First Half of 2018 through the First Half of 2020 (thousands Euros):

1 EBITDA = profit before taxes, interest, depreciation. The essence of EBITDA indicator is to determine the most objective profit (loss) of the company, which is least dependable on circumstances (least variable).

Taxable no home (Post Province of Pennsanes (Man and Maria Hamaria Hame)
Parman Mercial (Policia Premium Primandes (Marian Partian Partine Partine Partial Partian Partian Par

® Equity ratio = equity capital / rumber of shares.
¹º Book value per share = equity capital / number of shares.
¹º Price-to-book ratio (P/B ratio) = share price as of the e

Table 4. Income (mln. Euros) by operation types
-------------------------------------------------	--	--	--	--

	Group
min. Euros		I half of 2018 I half of 2019 I half of 2020
Construction works	40.83	46.30	36.14
Products produced and other income	4.74	3.02	1.01

During the first half of 2020, the main income of Panevezio statybos trestas AB by operation types was from construction and erection. Over the first half of 2020, the income of the Group from construction and erection totalled 97,3 %, income from made products and other income amounted to 2,7 %. Over the first half of 2019, the income of the Group from construction and erection totalled 93,6 %, income from made products and other income amounted to 6,1 %.

Table 5. Operating income (mln. Euros) by countries:

		Group			Company
	I half of	I half of	I half of	I half of	I half of	I half of
	2018	2019	2020	2018	2019	2020
Lithuania	38.79	40.74	31,13	37.56	46.33	32.55
Russian Federation	1.23	0.92	0	1.23	0.92	()
Scandinavian countries	5.03	4.09	5.44	0	0	()
Other countries	0.52	3.58	0.58	0.42	3.17	0.56

In the first half of 2020 the main activities of Panevezio statybos trestas AB were carried out in Lithuania and made 98.3 per cents compared to 91.9 per cents over the first half of 2019. The income of the Group from the works performed within the country made 83.8 per cents of the income, in the Scandinavian countries -- 14.6 per cents. In the first half of 2019, the income within the country made 82.6 per cents of the Scandinavian countries - 8.3 per cents.

Information on any transactions with related parties as prescribed by Paragraph 2, Article 37 of the Law on Companies.

There were no such transactions concluded.

Environmental protection

Quality, environment protectional health and safety play a very important role in activities of Panevezio statybos trestas AB. Quality Management (LST EN ISO 9001:2015), Environmental Management (LST EN ISO 14001:2018) and Occupational Health and Safety Management (LST EN ISO 45001:2018) Systems introduced and in place at the Company allow taking proper care of these significant factors. Assessment of occupational risk is carried out, analyses are performed and measures for risk reduction are taken on each site. For the purposes of environment and resource protection and sustainability, ensuring pollution prevention, in the beginning of each project the environmental plan including specific measures for control of significant aspects of environment protection and activities performed is prepared.

The companies of the Group also have Quality Management, Environmental Management, Occupational Health and Safety Management Systems in accordance with the requirements of LST EN ISO 9001:2015, LST EN ISO 14001:2015 and LST ISO 45001:2018 introduced and successfully functioning.

In 2018, the Lithuanian National Accreditation Bureau accredited the Construction Laboratory of the Company for the period of 5 years in accordance with LST EN ISO/IEC 17025:2005, thus granting it the right to perform tests of building materials.

Employees

Professional, competent and responsible employees are the biggest asset of Panevezio statybos trestas AB. Therefore, much attention is paid to motivation of employees: environment favourable for generation and implementation of new ideas is being created and sharing of information is being promoted. In modern environment, competence of employees is one of the key factors describing competitiveness of the company.

Considering this factor, the company encourages employees in all organizational levels to learn and improve their skills on a continuing basis. The employees are motivated not only by material incentives - competitive salaries, progressive bonus system but also by exceptional quality of working environment.

As of 30 June 2020, the number of employees in the Group was 916, in the company - 642. As of 30 June 2019, the number of employees in the Group was 1,016, in the company - 753.

Table 6. Average number of employees:

Average number of employees		I half of 2019	I half of 2020
	Group	Company	Group	Company
Managers	24	13	25	13
Specialists	339	264	324	246
Workers	680	493	605	411
Total	1,043	770	954	670

Table 7. Education level of the Group employees as of the end of the period:

PST Group employees	Payroll number	Higher university level education	Higher non- university education	Junior college education	Secondary education	Incomplete secondary education
Managers	28	24		2		0
Specialists	315	240	34	29	12	0
Workers	573	26	12	113	375	47
Total:	916	290	47	144	388	47

Table 8. Average monthly gross pay per employee (Euros)

		I half of 2019		I half of 2020
	Group	Company	Group	Company
Managers	3,512	4.090	3,871	4,682
Specialists	1,683	1,736	1,866	1,844
Workers	1.272	1,260	1,391	1,385
Total	1.490	1,515	1,661	1,668

Over the first half of 2020, the natural turnover of employees took place. Employment contracts do not include any special rights and obligations of employees or some part of them.

In 2020, the company also pays much attention to qualification improvement. Training in the company is done in three directions using:

Services of training arranging institutions (external training);
Services of higher education institutions (employee studies).

10. Information on research and development activities performed by the company and the Group

The Company aims to maintain the highest competence in the construction sector by implementing innovative processes and technologies.

For design preparation we use the up-to-date designing software. We are constantly keeping up to date with the latest applications and supplementing our software package.

The Company strives for especially fluent constructions. We use the up-to-date software that allows us using the advantages of the Building Information Modelling (BIM). This digital model is used in the tender preparation and preparation for construction stages, planning of necessary resources, scheduling production and supply, making the budget, delivering supplies to the site, monitoring the progress of planned and completed activities.

Application of BIM allows assessing risks, reducing probability of delay in work, taking immediate corrective actions, if necessary, and improving performance quality.

11. Procedure for amendment of the Articles of Association of the issuer

Any amendments of the Articles of Association of Panevezio statybos trestas AB are made following the procedure set forth in the regulations of the Republic of Lithuania.

12. Bodies of the issuer

Referring to the Articles of Association of Panevezio statybos trestas AB, the management bodies of the Company are the General Meeting of Shareholders, the Board and the Managing Director. There is no Supervisory Board is formed at the Company.

The powers of the General Meeting of Shareholders have no difference from the General Meeting of Shareholders set forth by the Law on Companies.

The Board of the Company consisting of five persons is elected by the General Meeting of Shareholders for a period not longer than 4 years. At present, the Board of the Company consists of five members. The procedure for election and withdrawal of a member of the Board has no difference from the procedure set forth by the Law on Companies.

The activities of the Board are managed by the Chairman of the Board. The Board is elected by the Board from the members of the Board elects and removes from the office the manager of the Company the Managing Director, fixes his salary, sets other terms of the employment contract, approves his job description, gives incentives and imposes penalties.

The manager of the Company is a single-person management body of the Company who organizes the current economic activities based on the authority granted.

The Board:

REMIGIJUS JUODVIRSIS - the Chairman of the Board. No membership in the capital of the Company. Membership in the activities or capital of the companies below:

Company	Position	Number of shares	Capital, %	Votes, %
Panevezio statybos trestas AB Company code 147732969 P. Puzino Str. 1, Panevezys	Chairman/ Adviser
Panevezio keliai AB Company code 147710353 S. Kerbedzio Str. 7, Panevezys	Board Member/ Adviser Main place of employment	531,675	28.47	28.47
Lauktuves jums UAB Company code 147797155 Laisves Sq. 26, Panevezys	Board Member	10,737	48.65	48.65
Pokstas UAB Company code 168424572 Gustoniu Vlg., Panevezys District Municipality		111	50	50
Klovainiu skalda AB Company code 167901031 Klovainiu Township, Pakruojis District Municipality		470,421	8.74	8.74
Gustoniu zemes ukio technika UAB Company code 168581940 S. Kerbedzio g. 7F, Panevezys	Board Member	1,085	50.28	50.28
PST investicijos UAB Company code 124665689 Verkiu Str. 25C, Vilnius	Board Member	16.407	3.32	3.32
Convestus UAB Company code 300124684 Laisves Sq. 26, Panevezys		50,000	50	50
Kauno tiltai AB Company code 133729589 Ateities Road 46, Kaunas		492	0.31	0.31

Company	Number of shares	Capital, %	Votes, %
Specializuota komplektavimo
valdyba AB Company code 121420097	21,490	1.07	1.07
Savanoriu Ave. 191A, Vilnius
Tertius UAB
Company code 247647690	704,638	80	80
S. Kerbedzio Str. 7F, Panevezys