Litgrid AB

Annual / Quarterly Financial Statement • Feb 6, 2020

LITGRID AB

Condensed Interim Consolidated and The Company 'S FINANCIAL STATEMENTS, PREPARED ACCORDING TO INTERNATIONAL FINANCIAL REPORTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION (UNAUDITED), FOR THE PERIOD ENDED 31 DECEMBER 2019

CONFIRMATION OF RESPONSIBLE PERSONS

February 6, 2020 Vilnius

Following the Law on Securities of the Republic of Lithuania and Rules on Information Disclosure approved by the Bank of Lithuania, we, Vidmantas Grušas, Director of Transmission Grid Department, acting as Chief Executive Officer of LITGRID AB, Vytautas Tauras, Director of Finance Department of LITGRID AB and Božena Vitaitė, Head of Accounting Division of LITGRID AB, hereby confirm that, to the best of our knowledge, the attached LITGRID AB unaudited interim consolidated and the Company's financial statements for the year ended 31 December 2019 are prepared in accordance with the International Financial Reporting Standards adopted by the European Union, give a true and fair view of the LITGRID AB and consolidated group assets, liabilities, financial position, profit and cash flows.

Vidmantas Grušas

Director of Transmission Grid Department, acting as Chief Executive Officer

Director of Finance Department

Božena Vitaitė

Vytautas Tauras

Head of Accounting Division

Condensed Interim Financial Statements STATEMENTS OF FINANCIAL POSITION STATEMENTS OF COMPREHENSIVE INCOME STATEMENTS OF CHANGES IN EQUITY STATEMENTS OF CASH FLOWS NOTES TO THE FINANCIAL STATEMENTS

The condensed interim financial statements were signed on 6 February 2020.

(

Vidmantas Grušas Pirector of Transmission Grid Department, acting as Chief Executive Officer

Vytadtas Tauras Difector of the Finance Department

Božena Vitaitė Head of Accounting Division

PAGE

4

5

7

8

9

3

STATEMENTS OF FINANCIAL POSITION (All amounts in EUR thousands unless otherwise stated)

	Notes	Group		Company
		31-12-2019	31-12-2018	31-12-2019	31-12-2018
ASSETTS
Non-current assets
Intangible assets	3	4,857	6,593	4,857	6,529
Property, plant and equipment	4	322,579	309,741	322,579	307,047
Right-of-use assets	5	584		584
Investments in subsidiaries	6				1,174
Deferred income tax assets		8,281	4,505	8,281	4,469
Loans granted		1,000		1,000	2,203
Available-for-sale financial assets		1,984	2,693	1,984	2,693
Other non-current financial assets	7	7,726	10,439	7,726	10,439
Total non-current assets		347,011	333,971	347,011	334,554
Current assets
Inventories		36	1,107	36	107
Prepayments		527	527	527	468
Trade receivables		17,027	20,861	17,027	17,012
Other amounts receivable		131	1,243	131	47
Prepaid income tax			478		460
Loans granted		1,203		1,203
Other financial assets	8	7,293	7,443	7,293	7,443
Cash and cash equivalents		30	627	30	397
Total current assets		26,247	32,286	26,247	25,934
TOTAL ASSETS		373,258	366,257	373,258
					360,488
EQUITY AND LIABILITIES
Equity
Authorized share capital		146,256	146,256	146,256	146,256
Share premium		8,579	8,579	8,579	8,579
Revaluation reserve			222
Reserve for changes in fair value of financial assets		52	655	52	655
Legal reserve		14,626	14,626	14,626	14,626
Other reserves		23,099	63,309	23,099	63,309
Retained earnings (deficit)		3,758	(38,622)	3,758	(37,588)
Total equity		196,370	195,025	196,370	195,837
Liabilities
Non-current liabilities
Non-current borrowings	9	79,903	94,128	79,903	94,128
Non - current lease liability		331	ਦਰੰਗੇ	337
Congestion management revenue	10	34,213	10,832	34,213	10,832
Other non-current amounts payable and liabilities		6,310	1,931	6,310
Total non-current liabilities		120,763	107,490	120,763	1,878
Current liabilities					106,838
Current portion of non-current borrowings	9	14,225
Current borrowings	9		14,225	14,225	14,225
Current lease liability		249	12,615 221		12,517
Trade payables				249
Share of congestion management revenue of the current		26,386	22,173	26,386	17,909
year	10	4,922	4,922	4,922	4,922
Advance amounts received		2,338	929	2,338	829
Income tax liability		373		373
Other current amounts payable and liabilities		7,632	8,657	7,632	7,411
Total current liabilities		56,125	63,742	56,125	57,813
Total liabilities		176,888	171,232	176,888	164,651
TOTAL EQUITY AND LIABILITIES		373,258	366,257	373,258	360,488

STATEMENTS OF COMPREHENSIVE INCOME (All amounts in EUR thousands unless otherwise stated)

		Group		Company
		2019	2018	2019	2018
Revenue
Revenue from electricity transmission and related		184,675	169,758	184,675	169,758
services Other income		9,599		616
Total revenue	11	194,274	20,883 190,641	185,291	2,191 171,949
Expenses
Expenses of electricity transmission and related services		(135,737)	(118,993)	(135,737)	(118,993)
Revaluation of property, plant and equipment			(50,981)		(50,981)
Depreciation and amortisation	3,4,5	(21,179)	(25,898)	(20,373)	(25,387)
Wages and salaries and related expenses		(15,572)	(15,042)	(9,717)	(8,545)
Repair and maintenance expenses		(5,532)	(2,851)	(9,176)	(5,064)
Telecommunications and IT maintenance expenses		(1,804)	(1,666)	(1,644)	(1,508)
Property, plant and equipment write-off expenses		(193)	(977)	(187)	(9/7)
Impairment (reversal) of inventories and amounts		610	515	620	499
receivable Impairment of investments					1,000
Other expenses		(12,178)	(19,785)	(6,358)	(5,847)
Total expenses		(191,585)	(235,678)	(182,572)	(215,803)
Operating profit/ ( ( loss)		2,689	(45,037)	2,719	(43,854)
Financing activities
Finance income		217	140	259	173
Disposal of subsidiary		2,720		2,150
Finance costs		(1,082)	(1,303)	(1,054)	(1,251)
Total finance costs		1,855	(1,163)	1,355	(1,078)
Profit/ (loss) before income tax		4,544	(46,200)	4,074	(44,932)
Income tax
Current year income tax expenses		(4,022)	(2,945)	(4,022)	(2,939)
Deferred income tax (expenses) / income		3,716	9,784	3,706	9,781
Total income tax	12	(306)	6,839	(316)	6,842
Profit/(loss) for the period		4,238	(39,361)	3,758	(38,090)
Other comprehensive income that will not be reclassified to profit or loss
Revaluation of property, plant and equipment		391	(5,289)		(5,289)
Change in fair value of financial assets		(709)		(709)
Effect of deferred income tax		47	793	106	793
Total other comprehensive income		(271)	(4,496)	(603)	(4,496)
Total comprehensive income/(expenses) for the period		3,967	(43,857)	3,155	(42,586)
Basic and diluted earnings/(deficit) per share (in EUR)		0.008	(0.078)	0.007	(0.076)

STATEMENTS OF COMPREHENSIVE INCOME (All amounts in EUR thousands unless otherwise stated)

	Group		Company
	01-10-	01-10-	01-10-	01-10-
	31-12-2019	31-12-2018	31-12-2019	31-12-2018
Revenue
Revenue from electricity transmission and related services	48,902	43,727	48,902
Other income	1,599	6,485	164	43,727
Total revenue	50,501	50,212	49,066	1,484 45,211
Expenses
Expenses of electricity transmission and related services	(34,201)	(31,315)	(34,201)	(31,315)
Revaluation of property, plant and equipment		(50,981)		(50,981)
Depreciation and amortisation	(5,215)	(6,540)	(5,082)	(6,417)
Wages and salaries and related expenses	(3,640)	(4,264)	(2,696)	(2,504)
Repair and maintenance expenses	(478)	(269)	(3,056)
Telecommunications and IT maintenance expenses	(495)	(522)	(468)	(1,190)
Property, plant and equipment write-off expenses	(66)	(179)	(66)	(472)
Impairment (reversal) of inventories and amounts				(179)
receivable	28	537	28	499
Impairment of investments				1,000
Other expenses	(4,786)	(5,635)	(2,063)	(1,696)
Total expenses	(48,853)	(99,468)	(47,604)	(93,255)
Operating profit/(loss)	1,648	(49,256)	1,462	(48,044)
Financing activities
Finance income	38		46	12
Disposal of subsidiary	2,720		2,150
Finance costs	(275)	(341)	(281)	(314)
Total finance costs	2,483	(341)	1,915	(302)
Profit/(loss) before income tax	4,131	(49,597)	3,377	(48,346)
Income tax
Current year income tax expenses	(1,057)	(366)	(1,057)	(360)
Deferred income tax (expenses) / income	774	7,922	800	7,960
Total income tax	(283)	7,556	(257)	7,600
Profit/(loss) for the period	3,848	(42,041)	3,120	(40,746)
Other comprehensive income that will not be reclassified to profit or loss
Revaluation of property, plant and equipment		(5,289)		(5,289)
Change in fair value of financial assets	(709)		(709)
Effect of deferred income tax	106	793	106	793
Total other comprehensive income	(603)	(4,496)	(603)	(4,496)
Total comprehensive income/(expenses) for the period	3,245	(46,537)	2,517	(45,242)
Basic and diluted earnings/(deficit) per share (in EUR)	0.008	(0.083)	0.006	(0.081)

STATEMENTS OF CHANGES IN EQUITY

(All amounts in EUR thousands unless otherwise stated)

Group	Share capital	Share premium	reserve	Reserve of changes in fair Revaluation value of financial assets	Legal reserve	Other reserves	Retained earnings	Total
Balance at 1 January 2018	146,256	8,579	5,380	655	14,790	62,767	8,171	246,598
Comprehensive income/ (expenses) for the year			(4,496)				(39,361)	(43,857)
Depreciation of revaluation reserve and amounts written off			(618)				618
Transfer to reserves						542	(542)
Transfer to retained earnings			(44)		(164)		208
Dividends							(7,716)	(7,716)
Balance at 31 December 2018	146,256	8,579	222	655	14,626	63,309	(38,622)	195,025
Balance at 1 January 2019	146,256	8,579	222	655	14,626	63,309		(38,622) 195,025
Comprehensive income/ (expenses) for the year			332	(603)			4,238	3,967
Depreciation of revaluation reserve and amounts written off			(58)				58
Disposal of subsidiary			(496)				496
Transfer to retained earnings						(40,210)	40,210
Dividends							(2,622)	(2,622)
Balance at 31 December 2019	146,256	8,579		52	14,626	23,099	3,758	196,370

Company	Share capital premium	Share	reserve	Reserve of changes in fair Revaluation value of financial assets	Legal reserve	Other reserves	Retained earnings	Total
Balance at 1 January 2018	146,256	8,579	4,999	655	14,626	62,767	8,257	246,139
Comprehensive income/ (expenses) for the year			(4,496)				(38,090)	(42,586)
Depreciation of revaluation reserve and amounts written off			(503)				503
Transfer to reserves						542	(542)
Dividends							(7,716)	(7,716)
Balance at 31 December 2018	146,256	8,579		655	14,626	63,309	(37,588)	195,837
Balance at 1 January 2019	146,256	8,579		655	14,626	63,309	(37,588)	195,837
Comprehensive income/ (expenses) for the year				(603)			3,758	3,155
Depreciation of revaluation reserve and amounts written off						(40,210)	40,210
Dividends							(2,622)	(2,622)
Balance at 31 December 2019	146,256	8,579		52	14,626	23,099	3,758	196,370

STATEMENTS OF CASH FLOWS (All amounts in EUR thousands unless otherwise stated)

	Group		Company
	2019	2018	2019	2018
Cash flows from operating activities
Profit / (loss) for the period	4,238	(39,361)	3,758	(38,090)
Adjustments for non-cash items and other adjustments:
Depreciation and amortisation expenses	21,179	25,898	20,373	25,387
Impairment of financial assets				(1,000)
Revaluation of property, plant and equipment		50,981		50,981
(Reversal of)/impairment of assets	(3,430)	(2,941)	(3,440)	(2,925)
Written-off bad debts	2,820	2,426	2,820	2,426
Impairment of property, plant and equipment	239		239
Income tax expenses	306	(6,829)	316	(6,842)
(Gain)/loss on disposal/write-off of property, plant and equipment	187	977	187	977
Elimination of results of financing and investing activities:
Interest income	(4)		(47)	(36)
Interest expenses	1,055	1,281	1,013	1,228
Disposal of subsidiary	(2,720)		(2,150)
Dividends income	(174)	(130)	(174)	(130)
Other finance (income)/costs	(12)	12	ﻟﻤﺎ	16
Changes in working capital:
(Increase) decrease in trade receivables and other amounts receivable	1,406	1,816	(240)	1,043
(Increase) decrease in inventories, prepayments and other current assets	192	33	30	85
Increase (decrease) in amounts payable, grants, deferred	2,684	5,373	4,565	4,818
income and advance amounts received
Changes in other financial assets	(50)	(9,146)	(50)	(9,146)
Income tax (paid)	(3,211)	(4,518)	(3,209)	(4,486)
Net cash generated from (used in) operating activities Cash flows from investing activities	24,705	25,872	23,994	24,306
(Purchase) of property, plant and equipment and intangible
assets	(42,700)	(22,997)	(42,017)	(22,156)
Disposal of property, plant and equipment	166
Grants received	14,848	24,283	14,848	24,283
Loans granted				(1,000)
Revenue generated from congestion management	27,318	12,208	27,318	12,208
Decrease (increase) in congestion management revenue balance	2,713		2,713
Disposal of subsidiary	3,092		3,315
Interest received			47	17
Dividends received	174	130	174	130
Net cash generated from (used in) investing activities	5,611	13,624	6,398	13,482
Cash flows from financing activities
Repayments of borrowings	(14,225)	(8,082)	(14,225)	(8,082)
Overdraft	(98)	(34,558)		(33,311)
Borrowings from related parties	(11,991)	12,517	(12,517)	12,517
Lease payments	(797)	(443)	(265)
Interest paid	(1,183)	(1,312)	(1,133)	(1,259)
Dividends paid	(2,619)	(7,690)	(2,619)	(7,690)
Other cash flows from financing activities		ﻟﻤﺎ
Net cash generated from (used in) financing activities	(30,913)	(39,565)	(30,759)	(37,825)
Increase (decrease) in cash and cash equivalents	(597)	(69)	(367)	(37)
Cash and cash equivalents at the beginning of the period	627	696	397	434
Cash and cash equivalents at the end of the period	30	627	30	397

General information 1.

LITGRID AB (hereinafter "the Company") is a public limited liability company registered in the Republic of Lithuania. The address of its registered office is: Viršuliškių skg. 998, LT-05131, Vilnius, Lithuania. The Company was established as a result of the unbundling of Lietuvos Energija AB operations and was register of Legal Entities on 16 November 2010, entity's code is 302564383.

Litgrid is an operator of electricity transmission system, operating electricity transmissions in the territory of Lithuania and ensuring the stability of operation of the whole electric power system. In addition, the Company is also responsible for the integration of the Lithuanian power system into the European electricity infrastructure and common electricity market.

On 27 August 2013, the National Commission for Energy Control and Prices (hereinafter - "NCC") issued in respect of the Company an open - ended License for the engagement in activity of electricity transmission.

The principal objectives of the Company's activities include ensuring the stability of the electric power system in the territory of Lithuania within its areas of competence, creation of objective and non-discriminatory conditions for the use of the transmission networks, management, use and disposal of electricity transmission system assets and its appurtenances.

As at 31 December 2019 the share capital of the Company amounted to EUR 146,256,100.20. It was divided into 504,331,380 ordinary registered shares with the nominal value of EUR 0.29 each. All the shares of the Company were fully paid. The Company has not acquired any own shares.

As at 31 December 2019 and 2018, the Company's shareholders structure was as follows:

Company's shareholders	Number of shares held	Number of shares held (%)
UAB EPSO-G	491,736,153	97.5
Other shareholders	12,595,227	2.5
Total:	504,331,380	100

The ultimate controlling shareholder of EPSO-G UAB (company code 302826889, address Gedimino pr. 20, Vilnius, Lithuania) is the Ministry of Energy of the Republic of Lithuania.

As from 22 December 2010, the shares of the Company are listed on the additional trading list of NASDAQ OMX Vilnius Stock Exchange, issue ISIN code LT0000128415.

As at 31 December 2019 and 2018 the Group included Litgrid, its directly controlled subsidiaries, associates and joint ventures, listed below:

Company	Address of the company's registered office	Shareholding as at 31 December 2019	Shareholding as at 31 December 2018	Profile of activities
Tetas UAB	Senamiesčio g. 102B, Panevėžys, Lithuania		100%	Disposal
Litgrid Power Link Service UAB	A. Juozapavičiaus g. 13, Vilnius, Lithuania		100%	Liquidated
Centras UAB	Duomenų Logistikos Zvejų g. 14, Vilnius, Lithuania	20%	20%	IT services
LitPol Link Sp.z.o.o	Wojciecha Gorskiego 900- 033 Warsaw, Poland	50%	50%	Is being liquidated

The sole shareholder on 26 April decided to terminate the activity of Litgrid Power Link Service UAB and liquidate the company. On 19 December 2019 Litgrid Power Link Service UAB was liquidated and deregister of Legal Entities.

During the Ordinary General Meeting of Shareholders of Litgrid AB held on 29 November 2019, the decision was made to approve the decision of the board of LITGRID AB dated 7 November 2019 to conclude UAB TETAS 100 percent sales and purchase agreement with UAB EPSO-G. Shares of UAB TETAS (400 000 units) were sold at a price set by independent valuer of assets -EUR 3.15 million.

Investments in subsidiaries are described in Note 6.

Polish and Lithuanian electricity transmission operators LITGRID AB and PSE, the only shareholders of the LitPol Link subsidiary (50% each), decided to liquidate the entity on 19 June 2019. The mission of the entity - to implement the first Poland-Lithuania interconnection - was successfully completion has been successfully operating since 2016, when it started functioning. PSE and Litgrid, basing on the positive previous experiences, will cooperate directly on the construction of the second interconnection - the submarine cable Harmony Link.

Due to Company's active steps on purpose to sell shares of associated entity UAB Duomeny logistikos centras, Company's investment in this entity was accounted in the item Other financial assets of Statement of financial position.

As at 31 December 2019, the Group had 290 employees (31 December 2018: 638), and the Company had 290 employees (31 December 2018: 267).

2. Summary of principal accounting policies

These condensed interim Consolidated and the Company's financial statements for the year ended 31 December 2019 are prepared in accordance with the International Financial Accounting Standards, as adopted by the European Union and applicable to interim financial statements (IAS 34 "Interim Financial Reporting").

In order to better understand the data presented interim financial statements, this financial statements should be read in conjunction with the audited Consolidated and the Company's financial statements for the year 2018, prepared according to International Financial Reporting Standards as adopted by the European Union.

The Company and the Group first time adopted the requirements of IFRS 16 Leases starting from 1 January 2019. In other respects, the same accounting principles have been followed as in the preparation of financial statements for 2018.

The presentation currency is euro. These financial statements are presented in thousands of euro, unless otherwise stated.

The financial year of the Company and other Group companies coincides with the calendar year.

These financial statements have been prepared on a historical cost basis, except for property, plant and equipment which is recorded at revalued amount, less accumulated depreciation and estimated impairment loss, and financial assets which are carried at fair value.

These financial statements for the nine-months period ended 31 December 2019 are not audited. Financial statements for the year ended 31 December 2018 are audited by the external auditor UAB Deloitte Lietuva.

Adoption of new standards effective after 1 January 2019

The Company and the Group applied IFRS 16 starting from 1 January 2019. On initial application of IFRS 16, the lease liability will be initially measured at the present value of the remaining lease payments, discounted using the lesses additional borrowing rate at the date of initial application. The Group recognizes an asset that is controlled by the right to use with value that is equal to the lease liabilities.

The Company and the Group applies the new standard using a modified retrospective method, which means that the comparative figures are not recalculated. The general impact of applying IFRS 16 is recognized on 1 January 2019.

Subsequently, the Company and the Group recognised depreciation of right-of-use assets and interest on lease liabilities in the profit (loss) statement; and separate the total amount of cash paid into a principal portion and interest, both presented in separate lines within financing activities in the statement of cash flows.

The right-of-use assets by the Company and the Group consist of transport and real estate assets. Currently, the Company and the Group has not taken a decision of the provisions of the standard for state land lease transactions.

The summary of the financial impact on adopting IFRS 16 is presented in the table below:

	Group		Company
	31-12-2019	01-01-2019	31-12-2019	01-01-2019
Right-of-use assets	584	1,402	584	847
Current lease liability	249	489	249	264
Non - current lease liability	337	912	337	583
Expected impact on profit (loss) statement:
Increase of depreciation	263		263
Increase of interest expense
Decrease of other expenses	265)		265)
Expected impact on statement of cash flows:
Increase of net cash flow from operating activities	266		266
Decrease of net cash flows from financing activities	265)		265)

3. Intangible assets

	Group	Company
Net book amount at 31 December 2017	3,650	3,647
Additions	4,090	4,026
Transfer to PP&E	(93)	(a3)
Amortization charge	(1,054)	(1,051)
Net book amount at 31 December 2018	6,593	6,529
Net book amount at 31 December 2018	6.593	6,529
Additions	273	249
lmpairment	(700)	(700)
Amortization charge	(1,222)	(1,221)
Disposal of subsidiary	(87)
Net book amount at 31 December2019	4,857	4,857

4. Property, plant and equipment

	Group	Company
Net book amount at 31 December 2017	378,403	376,028
Additions	18,572	17,745
Prepayments for property, plant, equipment	2,017	2,017
Revaluation	(56,270)	(56,270)
Write-offs	(1,045)	(1,045)
Transfer to inventories	(131)	(131)
Reclassification from intangible assets	93	ਰੇਤੋ
Set-off of grants with non-current assets	(7,054)	(7,054)
Depreciation charge	(24,844)	(24,336)
Net book amount at 31 December2018	309,741	307,047
Net book amount at 31 December 2018
Additions	309,741	307,047
Prepayments for property, plant, equipment	48,004	47,315
Revaluation	(227) 391	(227)
Disposals
Write-offs	(166)
lmpairment	(248)	(248)
Transfer from inventories	(239)	(239)
	11	71
Set-off of grants with non-current assets	(12,251)	(12,251)
Depreciation charge	(19,427)	(18,889)
Disposal of subsidiary	(3,070)
Net book amount at 31 December 2019	322,579	322,579

Property, plant, and equipment value are carried at the asset acquisition cost less grants received or receivable. Grants include the EU structural funds of connecting new consumers (producers) to electricity transmission network (applicable for fees received until 1 July 2009), the PSO funds and congestion revenue funds. If the value of the Property, plant, and equipment was not reduced by the grants, the book value of these assets as of 31 December2019 would be higher by EUR 298,818 thousand (31 December2018: EUR 297,497 thousand). Information about the Property, plant, and equipment the value of which has been reduced by the grants received/receivable is presented below:

Net book amount at 31 December 2017	297,649
Additions	7,054
Depreciation charge	(7,929)
Write-offs	(11)
Net book amount at 31 December2018	296,763
Net book amount at 31 December 2018	296.763
Additions	12.251
Depreciation charge	(8,118)
Write-offs	(20)
Net book amount at 31 December 2019	300,876

5. Right-of-use assets

	Group	Company
Net book amount at 1 January 2019	1,402	847
Additions	348
Depreciation charge	530)	263)
Disposal of subsidiary	636)
Net book amount at 31 December2019	584	584

Right-of-use assets consist of transport and real estate assets.

6. Investments in subsidiaries

As at 31 December 2018 the Company's investments comprised as following:

Subsidiaries	Investment cost	Impairment	Carrying amount	Ownership interest, %
TETAS UAB	4,754	(3,754)	1,000	100
Litgrid Power Link Service UAB	174		174	100
Total	4.928	(3,754)	1.174

As described in note 1 in 2019 the Company liquidated its subsidiary UAB Litgrid Power Link Service and sold its other subsidiary UAB TETAS shares to UAB EPSO-G.

Liquidation of UAB Litgrid Power Link Service

The sole shareholder on 26 April 2019 April decided to terminate the activity of Litgrid Power Link Service UAB and liquidate the company. On 14 October 2019 the share capital of UAB Litgrid Power Link Service (EUR 174 thousand) was annulled and used to write off the amount of losses (EUR 9 thousand). Cash with balance of EUR 165 thousand was paid to the Company. On 19 December 2019 Litgrid Power Link Service UAB was liquidated and deregistered from the Register of Legal Entities.

Sale of UAB TETAS shares

During the Ordinary General Meeting of Shareholders of Litgrid AB held on 29 November 2019, the decision was made to approve the decision of the board of LITGRID AB dated 7 November 2019 to conclude UAB TETAS 100 percent sales and purchase agreement with UAB EPSO-G. Shares of UAB TETAS (400 000 units) were sold at a price set by independent valuer of assets -EUR 3.15 million, which in 29 November 2019 UAB EPSO-G paid to Company. UAB TETAS sale profit 2.15 million EUR is recognized in the Company's statement of comprehensive income.

7. Other non-current financial assets

The long-term share of the balance of congestion management revenue unused funds amounted to EUR 7,726 thousand as of 31 December 2019 (EUR 10,439 thousand as of 31 December 2018) and in the statements of financial position it is accounted for in Other non-current financial assets. The short-term share of the congestion management revenue (aimed to use within 12 months) amounted to EUR 4,922 thousand as of 31 December 2019 and in the statement of financial position it is accounted for in Other financial assets. From May 2019 the account of accumulated congestion revenue was connected to the Group account (cash pool) and 26,240 thousand EUR of congestion revenue as of 31 December 2019 was temporary used for the financing of the Company's activities.

8. Other financial assets

	Group		Company
	31-12-2019	31-12-2018	31-12-2019	31-12-2018
Funds deposited for guarantees and deposits	1.619	1,769	1,619	1.769
Fund received for congestion management Financial assets held for sale (The shares of	4,922	4,922	4,922	4,922
UAB "Duomenų logistikos centras")	752	752	752	752
Total	7,293	7.443	7,293	7,443

9. Borrowings

Borrowings of the Group/Company were as follows:

	Group		Company
	31-12-2019	31-12-2018	31-12-2019	31-12-2018
Non-current borrowings
Borrowings from banks	79,903	94,128	79,903	94,128
Current borrowings
Current portion of non-current borrowings	14,225	14,225	14,225	14,225
Borrowings from related parties		12.517		12,517
Overdraft		98
Total borrowings	94,128	120,968	94,128	120,870

Maturity of non-current borrowings:

		Group		Company
	31-12-2019	31-12-2018	31-12-2019	31-12-2018
Between 1 and 2 years	14,225	14,225	14,225	14,225
From 2 to 5 years	37,535	42,676	37,535	42.676
After 5 years	28,143	37,227	28,143	37,227
Total	79,903	94.128	79,903	94.128

On 27 September 2018 the Company entered into a cash pool agreement with the shareholder UAB EPSO-G. The Agreement sets forth the maximum borrowing limit for UAB EPSO-G - up to EUR 23 million and the lending limit for LITGRID AB - up to EUR 20 million. As at 31 December 2019 the outstanding balance of borrowing is equal to EUR 0 (31 December 2018: EUR 12,517 thousand). The Company temporarily uses the accumulated congestion funds to finance its activities since accumulated congestion management revenue account was connected to the UAB EPSO-G Group account (cash pool),

As at 31 December 2019, the weighted average interest rate on the Company's borrowings was 1% (31 December 2018: 0.95%).

As at 31 December 2019, the Group's unwithdrawn balance of Group's cash pool amounted to EUR 23,000 thousand (31 December 2018: EUR 11,785 thousand), the Company's unwithdrawn balance - EUR 23,000 thousand (31 December 2018: EUR 10,483 thousand).

10. Congestion management revenue

	Group		Company
	31-12-2019	31-12-2018	31-12-2019	31-12-2018
Opening balance of congestion management
revenue	15,754	6,564	15,754	6.564
Congestion management revenue received during the
period	27,366	12,940	27,366	12,940
Reclassified to property, plant and equipment	(3,787)	(2,939)	(3,787)	(2,939)
Congestion management revenue recognised as income
during the period	(198)	(811)	(198)	(811)
Closing balance of congestion management revenue	39,135	15,754	39,135	15,754

11. Segment information

The Group has distinguished the following 2 segments:

• · Electricity transmission and related services activities (electricity transmission, trade in balancing/regulating, electricity, provision of system (capacity reserve) services and provision of services under PSO (public service obligation) scheme);
• · repair and maintenance activities.

The Group's information on segments for the period ended 31 December 2019 is presented in the table below:

2019	Electricity transmission and related services activities	Repair and maintenance activities	Total
Revenue	185,291	13,365	198,656
Inter-segment revenue		(4,382)	(4,382)
Revenue after elimination of intercompany revenue
within the Group	185,291	8,983	194,274
Operating profit/(loss)	2,719	(30)	2,689
Finance income/(cost), net*	X	×	1,855
Profit/(loss) before income tax	x	×	4,544
Income tax®	x	X	(306)
Profit/(loss) for the period	X	X	4,238
Depreciation and amortisation expenses	20,373	806	21,179
Write-offs of property, plant and equipment	187	6	193
Impairment of property, plant and equipment	239		239

* Income tax and finance income and clocated between the Company's operating segments and are attributed to electricity transmission operations.

Repair and maintenance activities information is provided for 11 months of the reporting period (29 November 2019 shares of Tetas UAB were sold).

The Group's information on segments for the period ended 31 December 2018 is presented in the table below:

2018	Electricity transmission and related services activities	Repair and maintenance activities	rotal
Revenue	171,949	21,902	193,851
Inter-segment revenue		(3,210)	(3,210)
Revenue after elimination of intercompany revenue
within the Group	171,949	18,692	190,641
Operating profit/ (loss)	(44,854)	(183)	(45,037)
Finance income/(cost), net*	×	×	(1,163)
Profit/(loss) before income tax	X	×	(46,200)
Income tax*	x	X	6,839
Profit/(loss) for the period	x	×	(39,361)
Depreciation and amortisation expenses	25,387	511	25,898
Write-offs of property, plant and equipment	974	3	977
Impairment of property, plant and equipment	50,981	3	50,984

* Income tax and finance income and costs are not aller and are attributed to electributed to electricity transmission operations.

12. Income tax

Income tax expenses for the period comprise current and deferred tax.

Profit for 2019 is taxable at a rate of 15 percent in accordance with Lithuanian regulatory legislation on taxation (2018: 15 percent).

On 26 February 2019, the Board of the Company adopted the decision to conclude agreements between the patronising company EPSO-G UAB and LITGRID AB regarding the transfer of tax losses for remuneration and between the subsidiary LITGRID Power Link Service UAB and LITGRID AB regarding the transfer of tax losses for free. Under agreements, the Company paid to EPSO-G UAB 15 per cent of the amount of the transferred tax losses, i.e. EUR 380 thousand, and by transferred EUR 6 thousand tax loss of LITGRID Power Link Service UAB was decreased to State budget payable income tax. These transactions were performed following to provisions of the Law on Income Tax.

13. Related-party transactions

The Company's/Group's related parties in 2019 and 2018 were as follows:

• EPSO-G (the parent company). 100% of EPSO-G share capital is owned by the Ministry of Energy of the Republic of Lithuania;
• Subsidiaries of the Company;
• Associates and joint ventures of the Company;
• Amber Grid AB (common shareholders);
• Baltpool UAB (common shareholders);
• Management;
• All state-controlled companies or those under significant influence.

Litgrid

NOTES TO THE FINANCIAL STATEMENTS (All amounts in EUR thousands unless otherwise stated)

Transactions with related parties are carried out in accordance with market conditions and the tariffs approved under legislation or in accordance with the requirements of the Law on Public Procurement.

The Group's transactions conducted with related parties in 2019 and balances ansing on these transactions as at 31 December 2019 were as follows:

Related parties	Amounts payable and accrued charges	Receivables and accrued income	Loans received	Sales	Purchases	Finance income	Costs of financial operations
EPSO-G UAB group companies
UAB "EPSO-G"	16			3,150	120		29
UAB "TETAS"	254	246	2 203		507	4
AB "Amber Grid"				2
BALTPOOL UAB		415		4,800
State-controlled companies
AB "Energijos skirstymo operatorius"	2,661	13,835		130,740	2,429		2
AB "Ignitis gamyba"	7,308	580		6,852	72,949
Energijos tiekimas UAB				1,991	1,065
UAB "Ignitis"		15		2,762	1,312
UAB Duomenų logistikos centras	34	21		253	178	81
UAB "Ignitis grupės paslaugų centras"		26		263
UAB Vilniaus kogeneracinė jėgainė	35			264
UAB "Transporto valdymas"	18				549
UAB Energetikos paslaugų ir rangos organizacija	240			90	989		6
UAB Kauno kogeneracinė jėgainė		281		279
AB "Lietuvos geležinkeliai"				396
VĮ Ignalinos atominė elektrinė	41	94		908	178
	10,607	15,513	2,203	152,750	80,276	85	37

The Company's transactions conducted with related parties in 2019 and balances arising on these transactions as at 31 December 2019 were as follows:

Related parties	Amounts payable and accrued charges	Receivables and accrued income	Loans received	Sales	Purchases	Finance income	Costs of financial operations
EPSO-G UAB group companies
UAB "EPSO-G"	16			3,150	113		17
UAB "TETAS"	254	246	2 203	16	4,856	47	5
BALTPOOL UAB		415		4,800
State-controlled companies
AB "Energijos skirstymo operatorius"	2,661	13,835		125,340	2,269
AB "Ignitis gamyba"	7,308	580		6,852	72,949
Energijos tiekimas UAB				1,991	1,065
UAB "Ignitis"		15		2,762	1,312
UAB Duomenų logistikos centras	34	21		253	178	81
UAB "Įgnitis grupės paslaugų centras"		26		263
UAB Vilniaus kogeneracinė jėgainė	35			264
UAB "Transporto valdymas"	18				183
UAB Energetikos paslaugų ir rangos organizacija	240				9:9
UAB Kauno kogeneracinė jėgainė		281		279
AB "Lietuvos geležinkeliai"				396
VĮ Ignalinos atominė elektrinė	41	ਰੇ ਪੇ		908	178
	10,607	15,513	2,203	147,274	84,092	178	22

The Group's transactions conducted with related parties in 2018 and balances arising on these transactions as at 31 December 2018 were as follows:

Related parties	Amounts payable and accrued charges	Receivables and accrued income	Loans received	Loans granted	Sales	Purchases	Finance income	Costs of financial operations
EPSO-G UAB group companies
UAB "EPSO-G"	415		12 517			155		18
BALTPOOL UAB		849			7,680	116
State-controlled companies
AB "Energijos skirstymo operatorius"	428	18,059			134,270	1,554		21
AB "Ignitis gamyba"	5,627	680			6,356	59,131
Energijos tiekimas UAB	127				7,070	1,703
UAB Duomenų logistikos centras	35	27			295	185	62
UAB "Įgnitis grupės paslaugų centras"		27			268
UAB "Transporto valdymas"	72					687
UAB Energetikos paslaugų ir rangos organizacija	269	9			30	2,258
UAB Kauno kogeneracinė jėgainė	609
NT Valdos, UAB	ﻟﻠﺒﺎ					560
AB "Lietuvos geležinkeliai"		52			424
VĮ Ignalinos atominė elektrinė	25	92			1,006	162
	7,910	19,796	12,517		157,399	66,511	62	39

The Company's transactions conducted with related parties for the period from January to September of 2018 and balances arising on these transactions as at 31 December 2018 were as follows:

Related parties	Amounts payable and accrued	Receivables and accrued	Loans	Loans			Finance	Costs of financial
	charges	income	received	granted	Sales	Purchases	income	operations
EPSO-G UAB group companies
UAB "EPSO-G"	413		12,517			143		18
UAB "TETAS"	411	24		2,203	303	2,123	36
UAB "LITGRID Power Link Service"					52	709
BALTPOOL UAB		849			7,680	116
State-controlled companies
AB "Energijos skirstymo operatorius"	332	13,965			116,690	1,509
AB "Ignitis gamyba"	5,627	680			6,356	59,131
Energijos tiekimas UAB	127				7,070	1,703
UAB Duomenų logistikos centras	35	27			295	185	62
UAB "Įgnitis grupės paslaugų centras"		27			268
UAB "Transporto valdymas"	23					254
UAB Energetikos paslaugų ir rangos organizacija	271					1,554
UAB Kauno kogeneracinė jegainė	609
NT Valdos, UAB	3					560
AB "Lietuvos geležinkeliai"		52			424
VĮ Ignalinos atominė elektrinė	25	92			1,006	162
	7,876	15,717	12,517	2,203	140,144	68,149	98	18

Payments to the key management personnel

	Group		Company
	2019	2018	2019	2018
Employment-related payments	953*	1.057	764	776
Whereof: termination benefits		45		41
Number of the key management personnel (average annual)	11	12

*in this figure payments to the managers of the subsidiaries UAB Tetas during 2019 eleven months.

During the years 2019 and 2018 the Management of the Group and the Company did not receive any loans, guarantees, or any other payments or property transfers were made or accrued.

Key management personnel consists of the Group's heads of administration and department directors.

14. Dividends

During the Ordinary General Meeting of Shareholders of Litgrid AB held on 24 April 2018, the decision was made to pay out dividends in amount of EUR 7 716 270. Dividends per share amounted to EUR 0.0153.

During the Ordinary General Meeting of Shareholders of Litgrid AB held on 23 April 2019, the decision was made to pay out dividends in amount of EUR 2,622,523. Dividends per share amounted to EUR 0.0052.

15. Basic and diluted earnings per share

Basic earnings per share are calculated dividing the Group net profit for the weighted average number of ordinary shares during the reportable period. The Group has no financial instruments, that can be potentially converted into ordinary shares and therefore diluted earnings per share as basic earnings per share. Basic and diluted earnings are provided below:

	2019	7018
Net profit (loss) attributable to the Company's shareholders (EUR thousands) Weighted average number of shares (units) Basic and diluted earnings (deficit) per share (in EUR)	4,238 504,331,380 0.008	(39,361) 504,331,380 (0.078)