Kauno Energija

Quarterly Report • Apr 26, 2019

AB KAUNO ENERGIJA

CONDENSED INTERIM SET OF CONSOLIDATED AND PARENT COMPANY'S FINANCIAL STATEMENTS FOR THE THREE MONTH PERIOD, ENDED 31 MARCH 2019, PREPARED ACCORDING TO INTERNATIONAL FINANCIAL REPORTING STANDARDS, AS ADOPTED BY THE EUROPEAN UNION

(UNAUDITED)

AB KAUNO ENERGIJA, company code 235014830, Raudondvario pl. 84, Kaunas, Lithuania Condensed Consolidated and Separate Financial Statements of the Company for 3 months period, ended 31 March 2019 (in thousand EUR, if not stated otherwise)

Condensed Interim Statements of Financial Position

		Group		Company
	Notes	As of 31 March 2019	As of 31 December 2018	As of 31 March 2019	As of 31 December 2018
ASSETS
Non-current assets
Intangible assets		18	22	18	22
Property, plant and equipment	6
Land and buildings		7,968	8,087	6,596	6,677
Structures		88,411	88,762	87,847	88,181
Machinery and equipment		20,148	21,053	17,439	18,214
Vehicles		422	460	410	448
Devices and tools		2,720	2,888	2,718	2,885
Construction in progress and prepayments		4,030	3,588	4,030	3,588
Investment property		584	439	171	172
Total property, plant and equipment		124,283	125,277	119,211	120,165
Right-of-use assets	4	824	-	803	-
Non-current financial assets
Investments into subsidiaries		-	-	2,064	2,064
Loans to the group companies		-	-	-	-
Other financial assets		1	1	1	1
Total non-current financial assets		1	1	2,065	2,065
Total non-current assets		125,126	125,300	122,097	122,252
Current assets
Inventories and prepayments
Inventories	7	1,347	1,584	1,333	1,516
Prepayments		1,040	1,259	962	1,187
Total inventories and prepayments		2,387	2,843	2,295	2,703
Amounts receivable within one year
Trade receivables	8	9,560	10,188	9,560	10,188
Loans to the group companies	15	-	-	443	443
Other receivables	8	1,165	969	1,135	938
Total accounts receivable		10,725	11,157	11,138	11,569
Cash and cash equivalents		14,772	8,761	14,479	8,673
Assets held for sale		18	205	18	205
Total current assets		27,902	22,966	27,930	23,150
Total assets		153,028	148,266	150,027	145,402

(continued on the next page)

Condensed Interim Statements of Financial Position (continued)

		Group		Company
	Notes	As of 31 March 2019	As of 31 December 2018	As of 31 March 2019	As of 31 December 2018
EQUITY AND LIABILITIES
Equity
Share capital	1	74,476	74,476	74,476	74,476
Legal reserve		6,435	6,435	6,435	6,435
Other reserve		100	100	100	100
Retained earnings (deficit)
Profit for the current year		5,086	3,963	4,631	4,414
Profit (loss) for the prior year		8,956	4,993	9,088	4,674
Total retained earnings (deficit)		14,042	8,956	13,719	9,088
Total equity		95,053	89,967	94,730	90,099
Payable amounts and liabilities
Amounts payable after one year and
other long-term liabilities
Non-current financial liabilities	9	21,239	19,257	19,537	17,556
Financial lease obligations	9;4	1,043	81	875	81
Deferred tax liability		5,458	5,458	5,693	5,693
Grants and subsidies		18,133	18,235	17,203	17,265
Employee benefit liability		704	704	698	698
Non-current trade liabilities		2	2	2	2
Total non-current liabilities		46,579	43,737	44,008	41,295
Current liabilities
Current portion of non-current	9;4	3,566	4,483	3,282	3,916
borrowings and financial lease
Current borrowings		-	-	-	-
Trade payables		5,878	7,650	6,171	7,751
Employment-related liabilities		920	790	890	771
Advances received		507	877	508	877
Taxes payable		175	392	121	357
Derivative financial instruments	10	16	16	-	-
Current portion of employee benefit		127	155	127	154
liability
Interest liabilities		-	-	-	-
Accruals and deferred income		142	137	124	120
Other current liabilities		65	62	66	62
Total current liabilities		11,396	14,562	11,289	14,008
Total liabilities		57,975	58,299	55,297	55,303
Total equity and liabilities		153,028	148,266	150,027	145,402

(the end)

AB KAUNO ENERGIJA, company code 235014830, Raudondvario pl. 84, Kaunas, Lithuania Condensed Consolidated and Separate Financial Statements of the Company for 3 months period, ended 31 March 2019 (in thousand EUR, if not stated otherwise)

Condensed Interim Statements of Profit (Loss) and Other Comprehensive Income

Group	Notes	2019 I quarter	2019	2018 I quarter	2018
Revenue
Sales income	11	28,366	28,366	32,662	61,316
Other operating income		315	315	382	1,299
Total operating income		28,681	28,681	33,044	62,615
Expenses
Fuel and heat acquired		(17,281)	(17,281)	(17,985)	(36,267)
Salaries and social security		(1,566)	(1,566)	(1,692)	(7,281)
Depreciation and amortization	6	(1,711)	(1,711)	(1,768)	(6,972)
Repairs and maintenance		(171)	(171)	(153)	(1,084)
Change in impairment of accounts receivable	8	(663)	(663)	(550)	785
Taxes other than income tax		(418)	(418)	(416)	(1,563)
Electricity		(474)	(474)	(423)	(1,145)
Raw materials and consumables		(170)	(170)	(138)	(568)
Water		(255)	(255)	(283)	(1,081)
Change in net realisable value and impairment of non-current assets	7	(22)	(22)	3	113
Other operating expenses	12	(654)	(654)	(700)	(2,289)
Other activities expenses		(122)	(122)	(81)	(380)
Total expenses		(23,507)	(23,507)	(24,186)	(57,732)
Operating profit (losses)		5,174	5,174	8,858	4,883
Other interest and similar income		50	50	50	237
Impairment financial assets and short-term investments		-	-	-	-
Interest and other similar expenses		(137)	(137)	(144)	(553)
Finance cost, net		(87)	(87)	(94)	(316)
Profit before income tax		5,087	5,087	8,764	4,567
Corporate income tax Deferred tax income (losses)		- -	- -	- -	19 (584)
Net profit (loss) of the reporting period		5,087	5,087	8,764	4,002
Employee benefit liability (accumulation), which will be reclassified subsequently to profit or loss when specific conditions are met		(1)	(1)	(185)	(39)
Comprehensive income		5,086	5,086	8,579	3,963
Net profit (loss) of the reporting period attributable to net owners of the Company		5,087	5,087	8,764	4,002
Total comprehensive income attributable to owners of the Company		5,086	5,086	8,579	3,963
Basic and diluted earnings per share (EUR)	13	0.12	0.12	0.20	0.09

AB KAUNO ENERGIJA, company code 235014830, Raudondvario pl. 84, Kaunas, Lithuania Condensed Consolidated and Separate Financial Statements of the Company for 3 months period, ended 31 March 2019 (in thousand EUR, if not stated otherwise)

Condensed Interim Statements of Profit (Loss) and Other Comprehensive Income

Company	Notes	2019 I quarter	2019	2018 I quarter	2018
Revenue
Sales income	11	28,372	28,372	32,670	61,328
Other operating income		281	281	349	1,181
Total operating income		28,653	28,653	33,019	62,509
Expenses
Fuel and heat acquired		(18,015)	(18,015)	(18,468)	(36,999)
Salaries and social security		(1,523)	(1,523)	(1,653)	(7,141)
Depreciation and amortization	6	(1,570)	(1,570)	(1,621)	(6,390)
Repairs and maintenance		(167)	(167)	(151)	(1,067)
Change in impairment of accounts receivable	8	(663)	(663)	(544)	807
Taxes other than income tax		(410)	(410)	(409)	(1,536)
Electricity		(413)	(413)	(367)	(1,017)
Raw materials and consumables		(165)	(165)	(135)	(559)
Water		(255)	(255)	(283)	(1,080)
Change in net realisable value and impairment of	7	(22)	(22)	3	113
non-current assets Other operating expenses	12	(641)	(641)	(685)	(2,243)
Other activities expenses		(101)	(101)	(52)	(265)
Total expenses		(23,945)	(23,945)	(24,365)	(57,377)
Operating profit (losses)		4,708	4,708	8,654	5,132
Other interest and similar income		51	51	49	239
Impairment financial assets and short-term investments		-	-	-	156
Interest and other similar expenses		(128)	(128)	(132)	(511)
Finance cost, net		(77)	(77)	(83)	(116)
Profit before income tax		4,631	4,631	8,571	5,016
Corporate income tax		-	-	-	19
Deferred tax income (losses)		-	-	-	(584)
Net profit (loss) of the reporting period		4,631	4,631	8,571	4,451
Employee benefit liability (accumulation), which will be reclassified subsequently to profit or loss when specific conditions are met		-	-	(185)	(37)
Comprehensive income		4,631	4,631	8,386	4,414
Basic and diluted earnings per share (EUR)		0.11	0.11	0.20	0.10

Condensed Interim Statement of Changes in Equity

Group	Notes	Share capital	Legal reserve	Other reserve	Retained earnings (accumulated deficit)	Total
Balance as of 31 December 2017		74,476	3,267	100	11,500	89,343
Profit for the reporting period		-	-	-	8,764	8,764
Other comprehensive income		-	-	-	(185)	(185)
Balance as of 31 March 2018		74,476	3,267	100	20,079	97,922
Transferred to reserves		-	3,168	100	(3,268)	-
Transferred from reserves		-	-	(100)	100	-
Dividends		-	-	-	(3,339)	(3,339)
Profit for the reporting period					(4,762)	(4,762)
Other comprehensive income		-	-	-	146	146
Balance as of 31 December 2018		74,476	6,435	100	8,956	89,967
Profit for the reporting period		-	-	-	5,087	5,087
Other comprehensive income		-	-	-	(1)	(1)
Balance as of 31 March 2019		74,476	6,435	100	14,042	95,053

The accompanying notes are an integral part of these financial statements.

AB KAUNO ENERGIJA, company code 235014830, Raudondvario pl. 84, Kaunas, Lithuania Condensed Consolidated and Separate Financial Statements of the Company for 3 months period, ended 31 March 2019 (in thousand EUR, if not stated otherwise)

Condensed Interim Statement of Changes in Equity

Company	Notes	Share capital	Legal reserve	Other reserve	Retained earnings (accumulated deficit)	Total
Balance as of 31 December 2017		74,476	3,267	100	11,181	89,024
Profit for the reporting period		-	-	-	8,571	8,571
Other comprehensive income		-	-	-	(185)	(185)
Balance as of 31 March 2018		74,476	3,267	100	19,567	97,410
Transferred to reserves		-	3,168	100	(3,268)	-
Transferred from reserves		-	-	(100)	100	-
Dividends		-	-	-	(3,339)	(3,339)
Profit for the reporting period		-	-	-	(4,120)	(4,120)
Other comprehensive income		-	-	-	148	148
Balance as of 31 December 2018		74,476	6,435	100	9,088	90,099
Profit for the reporting period		-	-	-	4,631	4,631
Other comprehensive income		-	-	-	-	-
Balance as of 31 March 2019		74,476	6,435	100	13,719	94,730

The accompanying notes are an integral part of these financial statements.

Condensed Interim Statements of Cash Flows

		Group		Company
	Notes	2019 I quarter	2018 I quarter	2019 I quarter	2018 I quarter
Cash flows from (to) operating activities
Comprehensive income		5,086	8,579	4,631	8,386
Adjustments for non-cash items:
Depreciation and amortization	6	2,137	2,193	1,957	2,001
Change in impairment of accounts receivable	8	(459)	551	(460)	545
Interest ехpenses		-	144	-	132
Change in fair value of derivatives	10	-	(1)	-	-
Loss (profit) from sale and write-off of property, plant and equipment		(128)	-	(128)	-
(Amortization) of grants and subsidies		(328)	(334)	(288)	(293)
Change in net realisable value and impairment of non-current assets	7	(58)	(3)	(58)	(3)
Change employee benefit liability		-	185	-	185
Corporate income tax expense		-	-	-	-
Change in accruals		-	9	-	-
Impairment of investment in subsidiary		-	-	-	-
Elimination of other financial and investing activity results		82	(49)	70	(49)
Total adjustments for non-cash items:		1,246	2,695	1,093	2,518
Changes in working capital:
(Increase) decrease in inventories	7	277	(107)	223	(164)
(Increase) decrease in prepayments		219	92	225	105
(Increase) decrease in trade receivables	8	1,092	(3,308)	1,092	(3,304)
(Increase) decrease in other receivables	8	25	(287)	25	(280)
(Decrease) increase in non-current trade payables		-	-	-	-
(Decrease) increase in trade payables and advances received		(2,351)	83	(2,158)	190
(Decrease) increase in employment-related liabilities		130	(64)	119	(80)
Increase (decrease) in tax payable		(217)	(245)	(236)	(254)
Increase (decrease) in received prepayments		-	-	-	-
Increase (decrease) in other current liabilities		(20)	1	(19)	9
Total changes in working capital:		(845)	(3,835)	(729)	(3,778)
Net cash flows from operating activities		5,487	7,439	4,995	7,126

(continued on the next page)

Condensed Interim Statements of Cash Flows (continued)

		Group		Company
	Notes	2019 I quarter	2018 I quarter	2019 I quarter	2018 I quarter
Cash flows from (to) the investing activities
Acquisition of property, plant, equipment and intangible assets		(767)	(1,199)	(767)	(1,199)
Proceeds from sale of property, plant and equipment		336	1	336	1
Interest received		50	49	51	49
Loans granted		-	-	-	-
Net cash flows from investing activities		(381)	(1,149)	(380)	(1,149)
Cash flows from (to) financing activities
Proceeds from loans		2,227	2,245	2,227	2,245
Repayment of loans		(1,174)	(1,078)	(890)	(794)
Interest paid		(125)	(134)	(123)	(122)
Lease payments		(23)	(32)	(23)	(32)
Penalties and fines paid		-	-	-	-
Dividends paid		-	-	-	-
Received grants		-	129	-	129
Net cash flows from financing activities		905	1,130	1,191	1,426
Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at the beginning of the		6,011	7,420	5,806	7,403
period		8,761	6,610	8,673	6,511
Cash and cash equivalents at the end of the period		14,772	14,030	14,479	13,914

(the end)

Condensed interim explanatory notes to financial statements

1. General information

AB Kauno Energija (hereinafter – the Company) is a public limited liability company registered in the Republic of Lithuania. The address of its registered office is as follows: Raudondvario Rd. 84, Kaunas, Lithuania. Data about the Company is collected and stored in the Register of Legal Entities.

The Company is involved in heat and hot water supplies, electricity generation and distribution and also involved maintenance of manifolds. The Company are also involved in maintenance of heating systems. The Company was registered on 1 July 1997 after the reorganization of AB Lietuvos Energija, the Company code 235014830. The Company's shares are traded on the Baltic Secondary List of the AB Nasdaq Vilnius Stock Exchange.

As of 31 March 2019 and as of 31 December 2018, the shareholders of the Company were as follows:

	As of 31 March 2019		As of 31 December 2018
	Number of shares owned (unit)	Percentage of ownership (percent)	Number of shares owned (unit)	Percentage of ownership (percent)
Kaunas city municipality	39,736,058	92.84	39,736,058	92.84
Kaunas district municipality	1,606,168	3.75	1,606,168	3.75
Jurbarkas district municipality	746,405	1.74	746,405	1.74
Other minor shareholders	713,512	1.67	713,512	1.67
	42,802,143	100.00	42,802,143	100.00

The authorised share capital of AB Kauno Energija is in the amount of EUR 74.475.728,82 and it is divided into 42.801.143 ordinary nominal shares with the par value of 1.74 euros. As of 31 March 2019 and 31 December 2018, the Company did not hold any own shares. All shares were fully paid as of 31 March 2019 and as of 31 December 2018.

As of 31 March 2019, the Company and the subsidiaries UAB Kauno Energija NT and UAB Petrašiūnų Katilinė comprise the Group (hereinafter – the Group):

Company	Principal place of business	Share held by the Group	Cost of investment	Profit (loss) for the year	Total equity	Main activities
UAB Kauno energija NT	Savanorių Ave. 347, Kaunas	100 percent	1,330	3	1,069	Rent
UAB Petrašiūnų Katilinė	R. Kalantos st. 49, Kaunas	100 percent	1,894	492	734	Heat production

As of 31 March 2019, the average number of employees in the Group was 450 (499 employees as of 31 March 2018). As of 31 March 2019, the average number of employees at the Company was 437 (487 employees as of 31 March 2018).

Legal Regulations

According to the Law on Heat Industry of the Republic of Lithuania, the Company's activities are licensed and regulated by the National Commission for Energy Control and Prices (hereinafter the Commission). On 26 February 2004, the Commission granted the Company the heat supply license. The license has indefinite maturity, but is subject to meeting certain requirements and may be revoked based on the respective decision of the Commission. The Commission also sets price cap for the heat supply. On 13 September 2018, the Commission adopted a decision No. 03E-283, by which new heating price components have been determined for the Company for the period till 30 September 2021.

2. Basis of the preparation of financial statements

Condensed interim financial statements of the Company and the Group for the three months ended 2019 March 31 are prepared in accordance with International Financial Reporting Standards as adopted by the European Union (IFRS) and applied to interim financial reporting (International Accounting Standard (IAS) 34 Interim Financial Reporting). This unaudited financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2018, prepared in accordance with International Financial Reporting Standards as adopted by the European Union.

These financial statements do not include all the information required to prepare a complete set of consolidated and separate financial statements. However, the selected explanatory notes are included to clarify events and transactions that are material to the understanding of changes in the financial position and financial performance of the Group and the Company.

The financial year of the Company coincides with the calendar year.

As of 1 January 2019, the Company and the Group has adopted IFRS 16 Leases for the first time. For more information on the impact of changes in accounting policies on the Group's and the Company's financial statements, see Note 4.

All other accounting policies used in preparing the condensed interim financial information are the same as those applied for the preparation of the annual financial statements for 2018.

Management of the Company approved these interim financial statements on 24 April 2019.

3. Use of estimates and judgements for preparation of financial statements

The preparation of the financial statements in accordance with IFRS as adopted by the EU, requires management to make judgements, estimates on assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from the estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively.

The principal future assumptions and other significant sources of estimation uncertainty at the interim financial reporting date that pose a significant risk that may require a significant adjustment to the carrying amounts of assets or liabilities for the next financial year are the same as those described in the last annual separate and consolidated financial statements. Except for new assumptions and estimates related to lease accounting under IFRS 16, which is described in more detail in Note 4.

4. Changes in accounting policies

Except as set out below, the accounting policies used to prepare these interim condensed financial statements are the same as those described in the last separate and consolidated financial statements.

It is expected that changes in accounting policies will have an impact on the Group's and the Company's financial statements for the year ended 31 December 2019.

The Group and the Company has adopted IFRS 16 Leases as of 1 January 2019. The comparative information for 2018 were not adjusted. Other new standards that came into force as of 1 January 2019 do not have material effect of the financial statements of the Group and the Company.

IFRS 16 replaces IAS 17 Leases and related interpretations. IFRS 16 introduces a single lease accounting model in the statement of financial position. The lessee recognizes the right-of-use assets that represent its right to use the underlying asset and the lease liability that reflects its obligation to pay the lease payments.

On initial recognition of IFRS 16, the Group elected to use a modified retrospective approach. Accordingly, the comparative information has not been recalculated and in these financial statements is presented in accordance with IAS 17 and related interpretations of standards.

4. Changes in accounting policies (continued)

Lease definition

Until 1 January 2019, when signing contracts, the Group and the Company assessed whether the contract meets the definition of a lease in accordance with IFRIC 4 Determining whether an arrangement contains a lease. From 1 January 2019, upon the conclusion of the contract, an assessment of whether the contract is a lease or contains a lease is made on the basis of the new definition. Under IFRS 16, a contract is a lease or contains a lease, if it grants the right to control the use of the identified asset for a specified period in return for consideration.

At inception or on reassessment of a contract that contains a lease component, the Group and the Company allocate the consideration in the contract to each lease and non-lease component on the basis of their relative stand-alone prices. However, for leases of properties in which the Group and the Company is a lessee, the Group and the Company have elected not to separate non-lease components and will instead account for the lease and non-lease components as a single lease component.

The Group and the Company – as a lessee

As a lessee, the Group and the Company previously classified leases as operating or finance leases based on the assessment of whether the lease transferred substantially all of the risks and rewards of ownership. Under IFRS 16, the Group and the Company recognise right-of-use assets and lease liabilities for most leases - i.e. these leases are on-balance sheet.

The Group and the Company present right-of-use assets that do not meet the definition of investment property in 'property, plant and equipment' (as at 31 March 2019: 824 thousand EUR and 803 thousand EUR, respectively). Right-of-use assets that meet the definition of investment property (as at 31 March 2019: 147 thousand EUR accounted in the group) are presented within investment property.

Recognized lease liabilities in the statement of financial position are presented under the current part of lease (finance leases) and long-term financial liabilities and leasing (financial leases) items.

Significant accounting policies

The Group and the Company recognise a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, and subsequently at cost less any accumulated depreciation and impairment losses, and adjusted for certain remeasurements of the lease liability. When a right-of-use asset meets the definition of investment property, it is presented in investment property.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's and the Company's incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.

The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payment made. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, a change in the estimate of the amount expected to be payable under a residual value guarantee, or as appropriate, changes in the assessment of whether a purchase or extension option is reasonably certain to be exercised or a termination option is reasonably certain not to be exercised.

The Group and the Company have applied judgement to determine the lease term for some lease contracts in which it is a lessee that include renewal options. The assessment of whether the Group and the Company are reasonably certain to exercise such options impacts the lease term, which significantly affects the amount of lease liabilities and right-of-use assets recognised.

4. Changes in accounting policies (continued)

Transition

Previously, the Group and the Company classified property leases as operating leases under IAS 17. These included land and vehicles.

For leases classified as operating leases under IAS 17. lease liabilities were measured at the present value of the remaining lease payments, discounted at the Group's and the Company's incremental borrowing rate as at 1 January 2019.

The right-of-use assets are valued at an amount equal to the lease liability adjusted for the amount of any prepaid or accrued lease payments. The Group and the Company applied this approach to all leases.

The Group and the Company used the following practical expedients when applying IFRS 16 to leases previously classified as operating leases under IAS 17:

• Applied the exemption not to recognise right-of-use assets and liabilities for leases with less than 12 months of lease term.
• Excluded initial direct costs from measuring the right-of-use asset at the date of initial application.
• Used hindsight when determining the lease term if the contract contains options to extend or terminate the lease.

The Group's and Company's assets under finance leases consist of vehicles. These leases were classified as finance leases under IAS 17. For these finance leases, the carrying amount of the right-of-use asset and the lease liability at 1 January 2019 were determined at the carrying amount of the lease asset and lease liability under IAS 17 at the application date of the new policy.

The Group and the Company – as a lessor

The Group and the Company have reassessed the classification of lease and sublease where they act as a lessor. The Group and the Company lease out its investment property, including right-of-use assets. The Group has classified these leases as operating leases. The accounting policies applicable to the Group as a lessor are not different from those under IAS 17. The Group is not required to make any adjustments on transition to I FRS 16 for leases in which it acts as a lessor. The Group has applied IFRS 15 Revenue from Contracts with Customers to allocate consideration in the contract to each lease and non-lease component.

The Group and the Company do not have any sublease contracts.

Impacts on financial statements

On transition to IFRS 16, the Group recognised additional right-of-use assets, including investment property, and additional lease liabilities. These liabilities were stated at the present value of the remaining lease payments, discounted using the incremental borrowing rate of the Group at 1 January 2019. The incremental borrowing rate of the Group applied for discounting the lease payments as at 1 January 2019 was 3.58 %.

As a result of initially applying IFRS 16 in relation to the leases that were previously classified as operating leases, the Group and the Company recognised 990 thousand EUR and 819 thousand EUR of right-of-use assets (including investment property), 990 thousand EUR and 819 thousand EUR of lease liabilities, respectively.

Also in relation to those leases under IFRS 16, the Group has recognised depreciation and interest costs, instead of operating lease expense. During the 3 months ended 31 March 2019, the Group recognised 7 thousand EUR of depreciation charges and 11 thousand EUR of interest costs from these leases. The Company recognised 6 thousand EUR of depreciation charges and 9 thousand EUR of interest costs from these leases.

5. Fair value determination

On the initial recognition, the transaction price of the acquired asset or liability, assumed in the exchange transaction for a specific asset or liability, is the price paid for the acquisition of the asset or the receipt of the liability (acquisition cost). For comparison, the fair value of an asset or liability is the price that would be received on the sale of the asset or paid on disposal of the liability (sale / disposal price).

If the Company initially estimates its asset or liability at fair value and the transaction price is different from its fair value, the difference is recognized as a gain or loss unless otherwise stated in IFRSs.

The fair value measurement is based on the assumption that the transaction for the sale of the asset or disposal of the liability will be effected either:

in the underlying asset or liability market, or

where there are no core markets, the most favourable market for a particular asset or commitment.

When there are no directly observable variables available to the Company on the valuation day, i. e. the quoted prices (unadjusted) in the active markets for identical assets or liabilities are measured at fair value using the directly monitored variables. Adjusted variables are:

• prices declared for similar assets or liabilities in active markets;
• prices declared for identical or similar assets or liabilities in markets that are not active markets;
• variables other than quoted prices are monitored for a specific asset or liability;
• market-validated variables.

When there are no observable (directly or indirectly) variables, the fair value is determined by the nonobservable variables that the Group and the Company create using valuation techniques.

The fair value of a non-financial asset takes into account the ability of the market participant to generate economic benefits by utilizing the specific asset to the maximum and best or by selling it to another market participant that will use it to the maximum and best.

The fair value of the liability reflects the impact of the inactivity risk. The risk of inactivity includes, among other things, the credit risk of the entity itself. In determining the fair value of a liability, an entity shall measure the impact of its credit risk (financial position) and other factors that may affect the likelihood that the liability will or will not be settled.

The Group and the Company must increase the use of relevant observable variables and reduce the use of unobserved variables to achieve fair value measurement - to calculate the price at which the liability or equity instrument would be transferred under a legally settled transaction between market participants on the value determination day at the prevailing market conditions.

The assets and liabilities that are measured at fair value in the statement of financial position or the fair value of which is not determined, but the information about which is disclosed, are classified by the Group and the Company according to the fair value hierarchy, where the variables are divided into three levels, depending on their availability:

• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities, available for the Company as at the value determination day;
• Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices);
• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

If the inputs used to measure the fair value of an asset or a liability might be categorised within different levels of the fair value hierarchy, the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

6. Property, plant and equipment

During Q1 2019, non-current assets acquired by the Group and the Company amounted to 989 thousand EUR, the carrying amount of the disposals amounted to 3 thousand EUR.

As at 31 March 2019, depreciation of the Group's and the Company's property, plant and equipment amounts to 1,797 thousand EUR and 1,652 thousand EUR, respectively (at 31 December 2018: 7,302 thousand EUR and 6,704 thousand EUR, respectively). The Group's and the Company's depreciation charges of 1,778 thousand EUR and 1,637 thousand EUR (at 31 December 2018: 7,244 thousand EUR and 6,662 thousand EUR) were included in the operating expenses in the statements of Profit (loss) and Other Comprehensive Income. The remaining depreciation costs of 19 thousand EUR and 15 thousand EUR (at 31 December 2018: 58 thousand EUR and 42 thousand EUR) are stated under other activity expenses in the statements of Profit (loss) and Other Comprehensive Income.

The management of the Group and the Company, having assessed the internal and external features, has not determined an additional impairment of property, plant and equipment in 2019 (recognised 42 thousand EUR of additional impairment during 2018). During the Q1 2019, the management of the Group and the Company reversed the impairment of 18 thousand EUR (129 thousand EUR – during 2018).

As of 31 March 2019, part of the property, plant and equipment of the Group with acquisition cost of 55,255 thousand EUR (55,102 thousand EUR as of 31 December 2018) and the Company – EUR 55,145 thousand EUR were fully depreciated (54,945 thousand EUR as of 31 December 2018), but were still in active use.

As of 31 March 2019 and as of 31 December 2018, the major part of the Group's and the Company's construction in progress consisted of reconstruction and overhaul works of boiler-houses equipment and heat supply networks.

As of 31 March 2019, property, plant and equipment of the Group with the carrying amount of 50,572 thousand EUR (49,624 thousand EUR as of 31 December 2018) and the Company of 47,091 thousand EUR (46,005 thousand EUR as of 31 December 2018) was pledged to banks to secure the loans.

7. Inventories

	Group		Company
	As of 31 March 2019	As of 31 December 2018	As of 31 March 2019	As of 31 December 2018
Technological fuel	1,096	1,358	1,082	1,291
Spare parts	508	415	508	415
Materials	409	437	409	436
	2,013	2,210	1,999	2,142
Less: write-down to the net realisable value of inventory at the end of the period	(666)	(626)	(666)	(626)
Carrying amount of inventories	1,347	1,584	1,333	1,516

Revaluation of the Group's and the Company's inventories to net realisable value as at 31 March 2019 amounted to 666 thousand EUR (at 31 December 2018: 626 thousand EUR). Change in the revaluation of the inventories to net realisable value in the Group's and the Company's statements of Profit (Loss) and Other Comprehensive Income is included in the change of impairment of the realisable value of inventories and the value of property, plant and equipment.

8. Current accounts receivable

	Group		Company
	As of 31 March 2019	As of 31 December 2018	As of 31 March 2019	As of 31 December 2018
Trade receivables, gross	18,570	18,734	18,572	18,736
Less: expected credit losses	(9,010)	(8,546)	(9,012)	(8,548)
	9,560	10,188	9,560	10,188

Change in the impairment of doubtful receivables as at 31 March 2019 and 31 December 2018 is included in the caption of write-offs and change in allowance for accounts receivables in the Group's and the Company's statements of Profit (loss) and Other Comprehensive Income. Impairment of doubtful receivables is estimated based on the expected credit losses.

Change in expected credit losses of the Group's and the Company's receivables were as follows:

	Group	Company
Balance as at 31 December 2017	10,012	10,031
Recognised expected credit losses	(770)	(787)
Written off	(696)	(696)
Balance as at 31 December 2018	8,546	8,548
Recognised expected credit losses	662	662
Written off	(198)	(198)
Balance as at 31 March 2019	9,010	9,012

Analysis of the Group's net trade receivables as at 31 March 2019 and 31 December 2018:

	Trade	Trade receivables past due
	receivables not past due	Less than 60 days	60 - 150 days	151 - 240 days	241 - 360 days	More than 360 days	Total
31 March 2019	7,587	1,471	304	43	22	133	9,560
31 December 2018	8,670	611	74	65	115	653	10,188

8. Current accounts receivable (continued)

	Trade receivables not past due	Trade receivables past due
		Less than 60 days	60 - 150 days	151 - 240 days	241 - 360 days	More than 360 days	Total
31 March 2019	7,587	1,471	304	43	22	133	9,560
31 December 2018	8,670	611	74	65	115	653	10,188

Analysis of the Company's net trade receivables as at 31 March 2019 and 31 December 2018:

Trade receivables of the Group and the Company are interest-free and their settlement is normally 30 days or agreed on individual basis.

As of 31 March 2019 and 31 December 2018, the Group's and the Company's other receivables included taxes receivable from the state budget, compensations from municipalities for low income families, receivables for sold inventories (metal scrap, heating equipment) and services supplied (maintenance of manifolds and similar services).

Other receivables of the Group and the Company:

		Group	Company
	31 March 2019	31 December 2018	31 March 2019	31 December 2018
Taxes	490	490	490	490
Other	973	772	996	795
Less: expected credit losses	(298)	(293)	(351)	(347)
	1,165	969	1.135	938

Movement in impairment of other receivables of the Group and the Company:

	Group	Company
Balance at 31 December 2017	303	362
Recognised expected credit losses	(10)	(15)
Written off	-	-
Balance at 31 December 2018	293	347
Recognised expected credit losses Written off	5 -	4 -
Balance at 31 March 2019	298	351

8. Current accounts receivable (continued)

The ageing analysis of the Group's other receivables (excluding receivable taxes) as of 31 March 2019 and as of 31 December 2018 is as follows:

	Other	Other receivables past due
	receivables not past due	Less than 60 days	60 - 150 days	151 - 240 days	241 - 360 days	More than 360 days	Total
31 March 2019	343	281	32	10	4	5	675
31 December 2018	380	65	15	8	5	6	479

The ageing analysis of the Company's other receivables (excluding receivable taxes) as of 31 March 2019 and as of 31 December 2018 is as follows:

	Other		Other receivables past due
	not due	receivables past	Less than 60 days	60 - 150 days	151 - 240 days	241 - 360 days	More than 360 days	Total
31 March 2019		313	281	32	10	4	5	645
31 December 2018		349	65	15	8	5	6	448

The Group's and the Company's other receivables are non-interest bearing and the payment terms are usually 30 – 45 days.

As to trade receivables and other receivables that are neither impaired nor past due, the management opinion is that there are no indications as of 31 March 2019, that the debtors will not meet their obligations.

9. Financial liabilities

All loans of the Group and the Company are accounted for and repaid in euros. Repayment terms of non-current loans are as follows:

		Group		Company
	As of 31 March 2019	As of 31 December 2018	As of 31 March 2019	As of 31 December 2018
Non-current borrowings:	21,234	19,257	19,533	17,556
Payable in 2 to 5 years	13,329	11,780	11,628	10,079
Payable in more than 5 years Current portion of non-current borrowings	7,905	7,477	7,905	7,477
	3,349	4,272	3,065	3,705
	24,583	23,529	22,598	21,261

The Group and the Company accounted for interest payable to financial instritutions by amounts of 5 thousand EUR and 4 thousand EUR, respectively, which were stated under non-current liabilities in the statement of financial position as at 31 March 2019.

9. Financial liabilities (continued)

Detailed information on the loans of the Group as of 31 March 2019:

	Credit institution	Date of contract	Effective interest rate	Sum EUR thousand	Term of maturity	Balance as of 31/12/2018 EUR thousand	A part of 2019, EUR thousand
1	MF Lithuania*	2010.04.09	1,017	2,410	2034.03.15	1,404	-
2	MF Lithuania*	2010.10.26	0,917	807	2034.03.15	577	-
3	MF Lithuania*	2011.09.02	4,123	1,672	2034.09.01	1,391	87
4	Luminor**	2012.08.22	1,179	3,403	2022.04.29	1,985	284
5	AB SEB bankas	2013.06.03	1,42	799	2020.06.30	167	100
6	AB SEB bankas	2013.06.03	1,32	1,228	2020.06.30	251	153
7	AB SEB bankas	2013.09.10	1,78	1,506	2020.09.30	377	189
8	Luminor**	2013.09.27	1,92	377	2020.09.30	11	5
9	MF Lithuania*	2014.01.15	3,36	793	2034.12.01	666	41
10	AB SEB bankas	2014.03.31	1,73	1,564	2021.01.15	464	196
11	MF Lithuania*	2014.03.31	3,342	7,881	2034.12.01	6,616	414
12	AB SEB bankas	2015.03.09	1,63	579	2022.02.28	294	72
13	AB SEB bankas	2015.03.09	1,63	579	2022.02.28	147	73
14	OP Corporate***	2015.12.02	0,98	4,842	2022.12.02	2,594	519
15	AB SEB bankas	2016.05.09	0,94	459	2023.04.30	312	57
16	AB SEB bankas	2016.05.09	0,96	1,000	2021.04.30	417	150
17	AB SEB bankas	2016.05.09	0,94	579	2023.04.30	394	72
18	Luminor**	2016.10.25	1,12	1,894	2023.09.29	1,279	213
19	AB SEB bankas	2016.12.22	0,79	4,127	2024.11.30	2,452	461
20	AB SEB bankas	2017.07.26	0,92	697	2024.07.30	636	91
21	Danske Bank A/S	2017.12.18	-	2,340	2024.12.18	2,149	172
22	OP Corporate***	2018.05.17	-	10,070	2023.04.30	-	-
						24,583	3,349

* LR Ministry of Finance; ** Luminor bank AB; *** OP Corporate Bank Plc Lithuanian branch.

According to loan agreement signed between Luminor Bank AB and the Group's subsidiary UAB Petrašiūnų Katilinė on 22 August 2012, the subsidiary has to comply with following covenants: equity capital ratio (including support granted by the Lithuanian Business Support Agency) at least 40 %, DSCR not less than 1.3, and total financial debt to EBITDA ratio should be not more than 3.0. UAB Petrašiūnų Katilinė complies with the loan covenants as determined by the bank. The mentioned loan is secured by issuing a guarantee to the bank as described in Note 14.

9. Financial liabilities (continued)

Detailed information on the loans of the Company as of 31 March 2019:

	Credit institution	Date of contract	Effective interest rate	Sum EUR thousand	Term of maturity	Balance as of 31/12/2018 EUR thousand	A part of 2019, EUR thousand
1	MF Lithuania*	2010.04.09	1.017	2,410	2034.03.15	1,404	-
2	MF Lithuania*	2010.10.26	0.917	807	2034.03.15	577	-
3	MF Lithuania*	2011.09.02	4.123	1,672	2034.09.01	1,391	87
4	AB SEB Bank	2013.06.03	1.42	799	2020.06.30	167	100
5	AB SEB Bank	2013.06.03	1.32	1,228	2020.06.30	251	153
6	AB SEB Bank	2013.09.10	1.78	1,506	2020.09.30	377	189
7	Luminor**	2013.09.27	1.92	377	2020.09.30	11	5
8	MF Lithuania*	2014.01.15	3.36	793	2034.12.01	666	41
9	AB SEB Bank	2014.03.31	1.73	1,564	2021.01.15	464	196
10	MF Lithuania*	2014.03.31	3.342	7,881	2034.12.01	6,616	414
11	AB SEB Bank	2015.03.09	1.63	579	2022.02.28	294	72
12	AB SEB Bank	2015.03.09	1.63	579	2022.02.28	147	73
13	OP Corporate***	2015.12.02	0.98	4,842	2022.12.02	2,594	519
14	AB SEB Bank	2016.05.09	0.94	459	2023.04.30	312	57
15	AB SEB Bank	2016.05.09	0.96	1,000	2021.04.30	417	150
16	AB SEB Bank	2016.05.09	0.94	579	2023.04.30	394	72
17	Luminor**	2016.10.25	1.12	1,894	2023.09.29	1,279	213
18	AB SEB Bank	2016.12.22	0.79	4,127	2024.11.30	2,452	461
19	AB SEB Bank	2017.07.26	0.92	697	2024.07.30	636	91
20	Danske Bank A/S	2017.12.18	-	2,340	2024.12.18	2,149	172
21	OP Corporate***	2018.05.17	-	10,070	2023.04.30	-	-
						22,598	3,065

* LR Ministry of Finance; ** Luminor bank AB; *** OP Corporate Bank Plc Lithuanian branch.

AB SEB Bankas has determined that the Company must comply with the quarterly net financial debt / EBITDA ratio, which must not exceed 4.5. According to loan agreement between the Company and OP Corporate Bank Plc Lithuanian branch, the Company's own equity ratio (equity/total assets), shall not be lower than 35 %. The Company complied with financial covenants as at 31 March 2019 and 31 December 2018.

There are certain restrictions prescribed in the loan agreements. The Company cannot distribute dividends, issue or/and obtain new loans, provide charity, sell or rent pledged assets without banks written consent.

The immovable property (Note 6), bank accounts and land lease right of the Group and the Company were pledged as collateral for the borrowings.

10. Derivative financial instruments

On 16 December 2016, the Group entered into an interest rate SWAP agreement. According to the agreement, the Group pays to the bank a fixed interest rate (0.21 %), while the bank pays to the Group a variable interest rate of 6 months EURIBOR. The nominal value of the transaction was 2,268 thousand EUR as at 31 March 2019. This derivative instrument is recognized at fair value calculated by the bank as at 31 March 2019 – 16 thousand EUR (31 December 2018 –16 thousand EUR).

11. Sales income

The Group's and the Company's activities are heat supplies, maintenance of manifolds, electricity production and other activities. Starting from the year 2010, a part of inhabitants chose the Company as the hot water supplier. Those activities are inter-related, so consequently for management purposes the Group's and the Company's activities are organised as one main segment – heat energy supply.

The activity of the Group and the Company is seasonal because the major part of sales income is earned during the heating season, which starts in October and ends in April.

The Group's and the Company's sales income according to the activities are stated below.

Group	Q1 2019	2019	Q1 2018	2018
Heat supplies	26,774	26,774	31,520	57,387
Hot water supplies	979	979	975	3,260
Maintenance of hot water meters	105	105	100	408
Maintenance of manifolds	63	63	63	250
Maintenance of heat and hot water systems	3	3	4	11
Sale of emission allowances	442	442	-	-
	28,366	28,366	32,662	61,316

Company	Q1 2019	2019	Q1 2018	2018
Heat supplies	26,780	26,780	31,528	57,399
Hot water supplies	979	979	975	3,260
Maintenance of hot water meters	105	105	100	408
Maintenance of manifolds	63	63	63	250
Maintenance of heat and hot water systems	3	3	4	11
Sale of emission allowances	442	442	-	-
	28,372	28,372	32,670	61,328

Sales income by user groups:

Group	Q1 2019	2019	Q1 2018	2018
Residents	20,730	20,730	23,961	46,511
Other users	3,369	3,369	3,392	5,949
Budgetary organizations financed from the state
budget	2,344	2,344	2,877	4,774
Budgetary organizations financed from municipal
budgets	1,597	1.597	1,978	3,343
Institutions funded by Territorial Health Insurance
funds	154	154	207	371
Industrial users	172	172	247	368
	28,366	28,366	32,662	61,316

11. Sales income (continued)

Company	Q1 2019	2019	Q1 2018	2018
Residents	20,730	20,730	23,961	46,511
Other users	3,375	3,375	3,400	5,961
Budgetary organizations financed from the state budget	2,344	2,344	2,877	4,774
Budgetary organizations financed from municipal budgets Institutions funded by Territorial Health Insurance	1,597	1,597	1,978	3,343
funds	154	154	207	371
Industrial users	172	172	247	368
	28,372	28,372	32,670	61,328

12. Other expenses

Other expenses include:

		Group			Company
	Q1 2019	2019	Q1 2018	2018	Q1 2019	2019	Q1 2018	2018
Equipment verification and inspection	78	78	144	406	77	77	144	404
Maintenance of manifolds	96	96	98	381	96	96	98	381
Cash collection expenses	46	46	49	195	45	45	49	195
Expenses of ash utilization	45	45	38	145	40	40	30	127
Information technology expenses	45	45	47	132	45	45	47	132
Consulting expenses	14	14	24	124	15	15	24	124
Employees related expenses	36	36	29	102	37	37	29	102
Customer bills issue and delivery expenses	29	29	23	98	29	29	23	98
Membership fee	24	24	16	84	24	24	16	84
Maintenance of long term assets and related services	13	13	24	76	13	13	24	76
Transport expenses	17	17	22	70	17	17	21	69
Debts collection expenses	28	28	12	60	28	28	12	60
Insurance	47	47	38	56	44	44	36	48
Communication expenses	11	11	14	51	11	11	13	50
Advertising expenses	11	11	12	44	11	11	12	44
Audit expenses	-	-	-	44	-	-	-	44
Rent of equipment and machinery	3	3	2	16	3	3	2	16
Sponsorship	-	-	2	5	-	-	2	5
Other expenses	111	111	106	200	106	106	103	184
	654	654	700	2,289	641	641	685	2,243

13. Basic and diluted earnings per share

Calculation of the basic and diluted earnings per share of the Group is as follow:

	Group		Company
	Q1 2019	2018	Q1 2019	2018
Profit for the year	5,087	4,002	4,631	4,451
Number of shares (in thousand) in the beginning of the period	42,802	42,802	42,802	42,802
Number of shares (in thousand) at the end of the period	42,802	42,802	42,802	42,802
Weighted average of issued common shares (in thousand)	42,802	42,802	42,802	42,802
Basic and diluted earnings per share (EUR)	0.12	0.09	0.11	0.10

14. Commitments and contingencies

UAB Energijos Taupymo Centras has filed a claim against the Company regarding the annulment of the decision of the Public Procurement Commission on termination of the tender. Without the annulment of the decision, the plaintiff requests to adjudge 775 thousand EUR to cover the damage. The Court of First Instance, after reopening the case, decided to annul the decision that terminated the procurement. No decision on compensation of the damage was taken. An appeal has been currently launched. No provision for the mentioned amount has been established.

The Company provided support letters stating that it will provide financial support to its subsidiaries UAB Kauno Energija NT and UAB Petrašiūnų Katilinė during the period until 1 January 2020, and will ensure that the obligations of the subsidiaries were performed in due time.

Leasing and construction work purchase arrangements

Future liabilities of the Group and the Company under valid purchase arrangements as of 31 March 2019, amounted to 31,415 thousand EUR.

Guarantees

On 28 November 2016, the Company provided a guarantee in an amount of EUR 3,913 thousand to Luminor bank AB regarding the liabilities of the subsidiary UAB Petrašiūnų Katilinė to this bank according to credit agreement concluded on 22 August 2012, for the amount of EUR 3,403 thousand. On 28 November 2016, the Company provided guarantee in amount of EUR 95 thousand to Nordea Bank AB (publ) regarding liabilities of subsidiary UAB Petrašiūnų Katilinė to this bank according to transaction of derivative financial instruments, described in Note 10. As at 31 March 2019, the carrying amount of the loan is 1,985 thousand EUR.

15. Related parties transactions

The parties are considered related when one party has the possibility to control the other or have significant influence over the other party in making financial and operating decisions.

As of 31 March 2019 and 31 December 2018, the Group and the Company did not have any significant transactions with the other companies controlled by Kaunas city municipality, except for the purchases or sales of the utility services. The services provided to the Kaunas city municipality and the entities controlled by the Kaunas city municipality were executed at market prices. A list of companies related to the Municipality of Kaunas can be found here: http://www.kaunas.lt/administracija/struktura-ir-kontaktai/pavaldzios-imones-iristaigos/.

15. Related parties transactions (continued)

As of 31 March 2019 and 31 December 2018, the Group's and the Company's transactions with Jurbarkas city municipality, Kaunas city municipality and the entities, financed and controlled by the Municipality of Kaunas and their amounts receivable and payable at the end of the year were as follows:

31 March 2019	Purchases	Sales	Receivables	Payables
Kaunas city municipality and entities financed and controlled by Kaunas city municipality	299	2,596	1,050	196
Jurbarkas city municipality	3	171	36	1

31 December 2018	Purchases	Sales	Receivables	Payables
Kaunas city municipality and entities financed and controlled by Kaunas city municipality	1,228	5,520	6,693	237
Jurbarkas city municipality	15	465	40	2

Sales include amounts of compensations for deprived people for housing heating costs, cold and hot water and also wastewater costs.

As of 31 March 2019, the Group's and the Company's allowance for overdue receivables from entities financed and controlled by municipalities amounted to 295 thousand EUR (as of 31 December 2018 – EUR 265 thousand). The amounts outstanding are unsecured and will be settled in cash. No guarantees on receivables have been received.

As of 31 March 2019 and as of 31 December 2018, the Company's transactions with the subsidiaries and the inter-company balances at the end of the year were as follows:

UAB Petrašiūnų Katilinė	Purchases	Sales	Receivables	Payables
31 March 2019	1,284	1	443	460
31 December 2018	1,957	5	443	456
UAB Kauno Energija NT	Purchases	Sales	Receivables	Payables
31 March 2019	1	7	62	-

Receivables from UAB Petrašiūnų Katilinė comprise a loan granted. There was no provision established for expected credit losses on the loan granted.

As of 31 March 2019, the Company has determined an impairment in amount of 62 thousand EUR (as of 31 December 2018, in amount of 64 thousand EUR) for the receivables from subsidiaries.

Remuneration of the management and other payments

As of 31 March 2019, the Group's and the Company's management team comprised 3 and 1 persons, respectively (as of 31 December 2018 – 3 and 1).

	Group		Company
	31 March 2019	31 December 2018	31 March 2019	31 December 2018
Remuneration calculated to management	22	169	16	128
Calculated post-employment benefits to management	3	3	1	1

During Q1 2019 and 2018, the management of the Group and the Company did not receive any loans or guarantees; no other payments or property transfers were made or accrued.

16. Subsequent events

There were no other events that would have a significant impact on or require disclosure in the financial statements subsequent to the reporting date.