Vilkyskiu Pienine

Earnings Release • Feb 28, 2020

The results of 12 months of 2019

VILKYŠKIŲ PIENINĖ AB GROUP

CONTENT

• ^MAIN EVENTS DURING 12 MONTHS OF 2019
• ^MAIN FINANCIAL INDICATORS
• ^SALES REVENUE BY MARKETS
• ^SALES REVENUE BY OPERATING SEGMENTS
• ^CONSOLIDATED STATEMENT OF FINANCIAL POSITION
• ^CONSOLIDATED INCOME STATEMENT
• ^CONCOLIDATED STATEMENT OF CASH FLOWS
• ^ABOUT THE COMPANY
• ^COMPANIES OF THE GROUP
• ^SHORT HISTORY OF THE COMPANY
• ^SHAREHOLDERS
• ^SHARE PRICE DATA
• ^CONTACTS

MAIN EVENTS DURING 9 MONTHS OF 2019

PRODUCT NEWS:

• VILKYŠKIŲ Black Cat curd cheeses line was complemented by three news vanilla, mango and salted caramel curd cheeses, which have many healthy benefits (compared to similar cheeses): even 40% less sugar, more curd - less chocolate putty.
• New Cappuccino curd cheese was added to the "MURR" product line.
• VILKYŠKIŲ Black Cat yogurt line was complemented by two new yogurts with high - value berries: yogurt with black currants and guarani extract and yogurt with black rowan and Guaran extract. Yogurts were flavored with natural jams!
• From now YOGA's functional yogurts are with less sugar. Also its package was renewed - brighter packaging with a clearly visualized taste and highlighted YOGA name. In addition, the taste of yogurt with pumpkin and quince has been renewed - enriched with valuable and popular amaranth seeds.
• •The packages of VILKYŠKIŲ curd spreads were renewed from now ^a red hearth shows up the most important competitive advantage of this product (compared to similar spreads) – even 97 % curd.

NEW MARKETS:

• •Sales growth was driven by consistent work with European Union customers and sales growth in Asia, Africa, South and Central America.
• •Cheese sales have increased significantly in EU by attracting new customers from Italy, Slovakia and Portugal. Successful launches in South Korea, Chile, Mexico, as well as active negotiations with potential Colombian partners.
• •With the increased dry dairy production, ²⁰¹⁹ we have been actively looking for markets in Europe, Asia and Africa. Proceeding to cooperate with one of the largest buyers of dry dairy products in the UK, successful launches in Russia, Egypt, United Arab Emirates, Saudi Arabia, Republic of South Africa and etc.

EXHIBITIONS:

• •In February, for the sixth consecutive years in ^a row Vilkyškių pieninė AB participated in the international exhibition of food industry "Gulfood 2019" in Dubai, The United Arab Emirates. The main focus was on cheese, cheese products and dry milk/whey products.
• •In October, Vilkyškių pieninė AB traditionally participated in the exhibition "ANUGA 2019" in Cologne, Germany. It is titled as the largest exhibition in Europe where Vilkyškių pieninė AB presented cheese and dry milk products;
• •In October, Vilkyškių pieninė AB took part in 'Gulfood Manufacturing', in Dubai, The United Arab Emirates. The main focus was on our dry milk products.
• •In November Vilkyškių pieninė AB participated in the exhibition "FHC China 2019" in Shanghai in China. The mozzarella cheese and dry milk products were presented to Chinese market.
• •In December Vilkyškių pieninė AB introduced dry milk products in the exhibition 'Food Ingredients 2019' in Paris, France. The exhibition is titled as the largest exhibition in industrial products sector.

CERTIFICATES in 2019:

• "Modest" AB, Kelmės pieninė AB Tauragės Division, Vilkyškių pieninė AB have extended Halal certificate;
• The laboratory of Vilkyškių pieninė AB was granted approval by the "Laboratory conformity permit of food proccesing subject'';
• "Modest" AB and and Kelmės pieninė AB Tauragė Devision have Surveillance audit according to the ISO 22000:2005/FSSC 22000 Certification Scheme;
• Kelmės pieninė AB and Vilkyškių pieninė AB have re-certification audit according to the ISO 22000:2005/FSSC 22000 Certification Scheme.

MAIN FINANCIAL INDICATORS

	2015	2016	2017	2018	2019
Revenue (Thousands EUR)	84,445	90,490	113,939	103,162	114,634
EBITDA (Thousands EUR)	3,876	8,413	10,882	3,140	3,811
EBITDA margin (%)	4.6%	9.3%	9.5%	3.0%	3.3%
Net profit (loss) (Thousands EUR)	1,168	4,455	6,686	-1,186	-311
Profit (loss) margin (%)	1.4%	5.0%	5.9%	-1.1%	-0.3%
Quantity of purchased milk, t	237,065	243,633	249,992	267,785	268,555
Profit (loss) per share (EUR)	0.10	0.37	0.56	-0.10	-0.03
Net financial debt (Thousands EUR)	22,215	30,308	28,097	27,824	26,940

At 12 months of 2019, sales revenue came to 114.6 MEUR(11.1 percent more than in 12 months of 2018).

At reporting period EBITDA was 3.8 MEUR or 21.4 percent more than in previous year.

In 12 months of 2019 net loss was 0.3 MEUR or 0.9 MEUR less than same period of 2018.

In 12 months of 2019, a total of 269 t tones of milk was purchased, and increase by 0.3 percent as compared with 12 months of 2018.

QUANTITY OF PUCHASED MILK, T

REVENUE, THOUSANDS EUR

EBITDA, THOUSANDS EUR

NET PROFIT (LOSS), THOUSANDS EUR

SALES REVENUE BY MARKETS

(Thousand EUR)	2018		2019
Lithuania	24,585	24%	22,526	20%
European Union	55,865	54%	61,645	54%
Other countries	22,712	22%	30,463	26%
Total revenue:	103,162			114,634

SALES REVENUE BY OPERATING SEGMENTS

(Thousand EUR)	2018		2019
Cheese, cheese products and other	76,870	75%	81,960	71%
Dry milk products	7,571	7%	14,869	13%
Fresh milk products	18,721	18%	17,805	16%
Total:	103,162		114,634

THE SEGMENT COMPRISES:

• Cheese, cheese products and other. Cheese, cheese products, cream, and liquid whey that stays during the process of cheese production.
• Dry milk products. WPC, skimmed-milk, permeate and whey powder produced by the subsidiaries.
• Fresh milk products. Fresh milk products produced by the subsidiaries (milk, kephir, yoghurt, sour milk, butter, curd products).

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Thousand EUR	2019.12.31	2018.12.31
ASSETS
Property, plant and equipment	49,534	51,310
Intangible assets	6,936	6,933
Accrued rent income	221	-
Non-current amounts receivable	358	314
Deferred tax asset	135	-
Non-current assets	57,184	58,557
Inventories	11,261	15,228
Trade and other receivable	9,611	7,347
Prepayments	663	746
Cash and cash equivalents	298	407
Current assets	21,833	23,728
Total assets	79,017	82,285
EQUITY
Share capital	3,463	3,463
Share premium	3,301	3,301
Reserves	2,455	2,579
Retained earnings	21,967	22,153
Total equity attributable to owners of the Company	31,186	31,496
Non-controlling interest	50	51
Total quity	31,236	31,547
LIABILITIES
Borrowings and financial lease liabilities	12,950	14,900
Government grants	5,243	5,824
Deferred income tax liability	-	844
Non-current liabilities	18,193	21,568
Borrowings and financial lease liabilities	13,990	12,924
Income tax payable	-	-
Trade and other payables	15,598	16,246
Current liabilities	29,588	29,170
Total liabilities	47,781	50,738
Total equity and liabilities	79,017	82,285

CONSOLIDATED INCOME STATEMENT

Thousand EUR	2019.01.01- 2019.12.31	2018.01.01- 2018.12.31	2019.10.01- 2019.12.31	2018.10.01- 2018.10.31
Revenue	114,634	103,162	32,372	26,997
Cost of sales	-107,316	-97,389	-29,939	-27,509
Gross profit (loss)	7,318	5,773	2,433	-512
Other operating income	321	326	50	86
Distribution costs	-4,573	-4,317	-1,261	-712
Administrative expenses	-2,967	-2,517	-934	-556
Other operating expenses	-149	-149	-42	-26
Results of operating activities	-50	-884	246	-1,720
Finance income	20	13	2	10
Finance costs	-1,260	-999	-397	-297
Net finance costs	-1,240	-986	-395	-287
Profit (loss) before income tax	-1,290	-1,870	-149	-2,007
Income tax expenses	979	684	259	308
Profit (loss) for the period	-311	-1,186	110	-1,699
Attributable to:
Owners of the Company	-311	-1,186	110	-1,697
Non-controlling interest	-	-	-	-2
Profit (loss) for the year	-311	-1,186	110	-1,699
Basic earnings (losses) per share ( EUR)	-0.03	-0.10	0.01	-0.14

CONCOLIDATED STATEMENT OF CASH FLOWS
Thousand EUR	2019.01.01-	2018.01.01-
	2019.12.31	2018.12.31
Cash flows from operating activities
Profit (loss) for the year	-311	-1,186
Adjustments for:
Depreciation of property, plant and equipment	4,430	4,632
Amortization of intangible assets	12	32
Amortization and write-off of grants	-581	-640
Change in the decrease value of inventories	-894	-413
Gain (loss) from disposal of property, plant and equipment	-56	-62
Other operating income	-	-21
Income tax expenses	-979	-684
Interest expenses, net	1,240	986
	2,861	2,644
Change in inventories	4,859	-5,164
Change in non-current amounts receivable	-44	317
Change in trade and other receivables and prepayments	-2,576	1,462
Change in trade and other payables	-1,234	4,893
	3,866	4,152
Interest paid	-833	-790
Income tax paid	-8	-40
Net cash flows generated from operating activities	3,025	3,322
Cash flows from investing activities
Payments for acquisition of plant and equipment	-2,066	-1,441
Payments for acquisition of intangible assets	-15	-4
Proceeds from sale of plant and equipment	118	69
	-150	-103
Government grants received	376	791
Loans recovered	103	-
Net cash flows used in investing activities	-1,634	-688
Cash flows from financing activities
Loans received	4,215	4,257
Repayments of borrowings	-5,658	-5,129
Financial lease	-57	-
Funds for payment of dividends	-	-1,672
Net cash flows generated from financing activities	-1,500	-2,544
Net increase (decrease) in cash and cash equivalents	-109	90
Cash and cash equivalents at 1 January	407	317
Cash and cash equivalents at 31 December	298	407

ADDITIONAL INFORMATION

ABOUT THE COMPANY

Vilkyškių pieninė AB, was established in 1993 On the 31th of December2019 the Group had 828 employees The production of Dairy products is the core of Group business Company's share capital amounts to 3.5 million Eur The Company's issue is included in the Official List of AB NASDAQ OMX Vilnius. The ISIN code of the securities: LT0000127508, Ticker symbol: VLP1L. Standards: ISO 22000:2005 and FSSC 22000

COMPANIES OF THE GROUP

VILKYŠKIŲ

Established in 1993

The production of fermented cheese, cream, whey products

Established in 1992

The production of melt, smoked cheese, mould cheese, mozzarella, other cheese products

PIENINĖ AB "MODEST" AB KELMĖS PIENINĖ AB

Established in 1993

The production of fresh dairy products and dry milk products (WPC, SMP, permeate, whey powder)

"PIENO LOGISTIKA" AB

Established in 2013

Rental of buildings

SHORT HISTORY OF THE COMPANY

SHAREHOLDERS

Shareholder	Shares	Ownership interest
Swisspartners Versicherung AG Zweigniederlassung Österreich	6 067 206	51%
Šiaulių Bankas AB	2 035 729	17 %
Other shareholders	3 840 065	32 %
Capital in total:	11 943 000	100%

Swisspartners Zweigniederlassung Versicherung Österreich

51%

Other shareholders AG 32%

Multi Asset Selection Fund 17%

Vilkyškių pieninė AB share price and OMX Vilnius indexes comparison 2019 January - 2019 December

VILKYŠKIŲ PIENINĖ AB

Vilkyškiai, Pagėgių sav. 277160980 Tel. 8 441 55330 Fax. 8 441 55242 info@vilvi.eu www.vilkyskiu.lt

Contacts Gintaras Bertašius Director General Tel. 8 441 55330 gintaras.bertasius@vilvi.eu

Vilija Milaševičiutė Economics and Finance Director Tel. 8 441 55102 vilija.milaseviciute@vilvi.eu