Snaige AB

Quarterly Report • Nov 30, 2015

Snaige AB

CONFIRMATION OF RESPONSIBLE PERSONS

Following the Article No. 22 of the Law on Securities of the Republic of Lithuania and Rules on Preparation and Submission of Periodic and Additional Information of the Bank of Lithuania, we Gediminas Čeika, Managing Director of Snaige, AB and Mindaugas Sologubas, Finance Director of Snaige, AB hereby confirm that, to the best of our knowledge, the not audited Snaige AB interim Consolidated Financial Statements for the nine months period ended 30 September 2015, prepared in accordance with the International Financial Reporting Standards as adopted by the European Union, correctly reflects the reality and fairly shows issuer's assets, liabilities, financial position, profit or loss and cash flows of Snaige, AB.

Gediminas Čeika Managing Director

November $\frac{3}{7}$ $\mathcal{O}_1$ 2015

Mindaugas Sologubas Finance Director

AB SNAIGĖ

CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2015 (UNAUDITED)

CONTENTS

I. GENERAL PROVISIONS	3
II. FINANCIAL STATUS	4
III. EXPLANATORY NOTES	10

I. GENERAL PROVISIONS

1. Accounting period of the report

The report has been issued for the nine months of 2015.

2. The basic data about the issuer

The name of the company – SNAIGĖ PLC (hereinafter referred to as the Company)

Authorised capital – the Board of the Company proposed the Annual General Meeting of Shareholders, which was held on 30 April 2015, to change the expression of the par value of the Company's shares and the authorized capital in litas into expression in euro, i.e. to determine that the par value of one Company's share is equal to 0.29 euro and to establish that the Company's authorized capital is equal to 11,490,494.55 euro.

Address - Pramonės str. 6, LT-62175 Alytus

Phone - (+370-315) 56 206

Fax - (+370-315) 56 207

E-mail – snaige@snaige.lt

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

Legal organisation status – legal entity, public limited company

Registered as an enterprise on December 1, 1992 in the Municipality Administration of Alytus; registration number AB 92-119; enterprise register code 249664610. The latest Statute of AB "Snaige" was registered on May 26, 2015 in Legal Entities of the Republic of Lithuania.

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

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

The mass media – daily paper "Kauno diena".

Statement of comprehensive income

Ref. No.	ITEMS	30 09 2015	01 07 2015 30 09 2015	30 09 2014	01 07 2014 30 09 2014
I.	SALES AND SERVICES	34,658,478	14,273,170	33,305,105	11,768,597
1.1	Income of goods and other products sold	3,859,585	1,705,734	5,792,520	1,361,272
1.2	Income of refrigerators sold	30,798,893	12,567,436	27,512,585	10,407,325
ΙΙ.	COST OF GOODS SOLD AND SERVICES RENDERED	28,946,775	11,673,372	28, 113, 154	9,881,883
II.1	Net cost of goods and other products sold	2,419,210	1,089,275	1,955,004	676,969
II.2	Net cost of refrigerators sold	26,527,565	10,584,097	26, 158, 150	9,204,914
Ш.	GROSS PROFIT	5,711,703	2,599,798	5,191,951	1,886,714
IV.	OPERATING EXPENSES	4,702,307	1,718,954	4,743,215	1,517,258
IV.1	Sales expenses	3,025,211	1,182,322	2,875,462	860,737
IV.2	General and administrative expenses	1,677,096	536,632	1,867,753	656,521
V.	PROFIT (LOSS) FROM OPERATIONS	1,009,396	880,844	448,736	369,456
VI.	OTHER ACTIVITY	42,547	17,623	38,907	16,417
VI.1.	Income	168,012	59,724	124,123	49,208
VI.2.	Expenses	125,465	42,101	85,216	32,791
VII.	FINANCIAL AND INVESTING ACTIVITIES	(154, 770)	(72, 543)	(121, 588)	$-26,877$
VII.1.	Income	469,127	132,470	384,955	155,953
VII.2.	Expenses	623,897	205,013	506,543	182,830
VIII.	PROFIT (LOSS) FROM ORDINARY ACTIVITIES	897,173	825,924	366,055	358,996
IX.	EXTRAORDINARY GAIN
Х.	EXTRAORDINARY LOSS
XI.	CURRENT ACCOUNTING PERIOD PROFIT (LOSS) BEFORE TAXES	897,173	825,924	366,055	358,996
XII.	TAXES	0	0	1,977	0
XII.1	PROFIT TAX			1,918
XIII.	Adjustment of deferred profit tax			59
XIV.	Social tax
XV.	MINORITY INTEREST	48
XVI.	NET CURRENT ACCOUNTING PERIOD PROFIT (LOSS)	897,221	825,924	364,078	358,996

Managing Director

Gediminas Čeika

Financial Director

۶

Mindaugas Sologubas

page 4

Statement of financial position

Ref. No.	ASSETS	Notes	30 09 2015	31 12 2014
А.	Non-current assets		18,254,934	17,549,550
I.	INTANGIBLE ASSETS	10	1,659,700	1,592,741
Ш	TANGIBLE ASSETS	11	7,024,721	6,775,737
II.1.	Land
II.2.	Buildings		2,302,704	2,410,730
II.3.	Other non-current tangible assets		4,479,599	4, 157, 857
II.4.	Construction in progress and advance payments		242,418	207,150
III.	INVESTMENT PROPERTY
IV.	NON-CURRENT FINANCIAL ASSETS
IV.1	Deferred taxes assets		170,957	170,957
IV.2	Other non-current assets	12	9,399,556	9,010,115
V.	Amounts receivable after one year
VI.	Assets classified as held for sale
B.	Current assets		16,642,356	13,491,684
Ι.	INVENTORY AND CONTRACTS IN PROGRESS	13	3,951,914	5,214,350
1.1.	Inventory		3,951,914	5,214,350
1.2.	Advance payments
1.3.	Contracts in progress
II.	ACCOUNTS RECEIVABLE WITHIN ONE YEAR	14	9,076,696	6,472,733
III.	INVESTMENTS AND TERM DEPOSITS
IV.	CASH AT BANK AND ON HAND	16	2,058,185	1,222,254
V.	Other current assets	15	1,555,561	582,347
	Planned to sell non-current assets
C.	Accrued income and prepaid expenses
	TOTAL ASSETS		34,897,290	31,041,234

(continued on the next page)

AB SNAIGĖ, company code 249664610, Pramonės str. 6, Alytus Lithuania
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2015
(all amounts are in EUR unless otherwise stated)

Ref. No.	SHAREHOLDERS' EQUITY AND LIABILITIES	Notes	30 09 2015	31 12 2014
A.	Capital and reserves		9,641,421	8,738,134
1.	SHARE CAPITAL		11,490,495	11,475,439
1.1.	Authorized (subscribed) share capital		11,490,495	11,475,439
1.2.	Uncalled share capital (-)
1.3.	Share premium (surplus of nominal value)
	Own shares (-)
Ш.	REVALUATION RESERVE		(45, 485)	(36, 495)
IV.	RESERVES	18	901,431	901,431
V.	PROFIT (LOSS) BROUGHT FORWARD		(2,705,020)	(3,602,241)
	Current Profit (Loss)		897,221	(754, 681)
	The previous year Profit (Loss)		(3,602,241)	(2,847,560)
В.	Minority interest		306	354
D.	Provisions and deferred taxes		0	0
I.	PROVISIONS FOR COVERING LIABILITIES AND DEMANDS
П.	DEFERRED TAXES
Е.	Accounts payable and liabilities		25,255,563	22,302,746
Ι.	ACCOUNTS PAYABLE AFTER ONE YEAR AND NON- CURRENT LIABILITIES		13,865,230	11,056,135
С	Financing (grants and subsidies)		347,649	173,210
1.1.	Financial debts	21	13, 135, 656	10,501,000
1.2.	Warranty provisions		228,169	228,169
1.3.	Deferred income tax liability
1.4.	Advances received on contracts in progress
1.5.	Non-current employee benefits		153,756	153,756
1.6.	Non-current liabilities to suppliers
II.	ACCOUNTS PAYABLE WITHIN ONE YEAR AND CURRENT		11,390,333	11,246,611
II.1.	Current portion of non-current debts		212,800	3,486,547
II.2.	Financial debts
II.3.	Trade creditors		7,914,753	6,414,703
II.4.	Advances received on contracts in progress	24	1,174,360	171,827
II.5.	Taxes, remuneration and social security payable		1,013,173	617,581
II.6.	Warranty provisions		440,780	432,651
II.7.	Other provisions
II.8.	Other current liabilities		634,467	123,302
	TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES		34,897,290	31,041,234

Managing Director

Gediminas Čeika

Financial Director

Mindaugas Sologubas

page 6

Statement of cash flow

Ref. No.		30 09 2015	30 09 2014
I.	Cash flows from the key operations
1.1	Result before taxes	897,173	366,055
1.2	Depreciation and amortization expenses	257,349	1,283,453
1.3	Subsidies amortization	(27, 881)	(20, 196)
1.4	Result of sold non-current assets	(1, 137)	(5, 845)
1.5	Write-off of non-current assets	5
1.6	Write-off of inventories
1.7	Depreciation of receivables
1.8	Non-realized loss on currency future deals
1.9	Change in provision for guarantee repair	8,129	82,661
1.10	Recovery of devaluation of trade receivables
1.11	Influence of foreign currency exchange rate change	(54, 241)	(35, 280)
1.12	Financial income (interest income)	(399, 831)	(344, 231)
1.13	Financial expenses (interest expenses)	608,842	501,099
	Cash flows from the key operations until decrease (increase) in working capital	2,288,408	1,827,723
II.1	Decrease (increase) in receivables and other liabilities	(3,739,717)	(1,618,013)
II.2	Decrease (increase) in inventories	1,262,436	(162, 865)
II.3	Decrease (increase) in trade and other debts to suppliers	3,409,340	1,069,749
	Cash flows from the main activities	3,220,467	1,116,594
III.1	Interest received		1,570
III.2	Interest paid	(609, 205)	(490, 959)
III.3	Profit tax paid		(1,918)
	Net cash flows from the key operations	2,611,262	625,287

IV.	Cash flows from the investing activities
IV.1	Acquisition of tangible non-current assets	(1, 183, 795)	(202, 014)
IV.2	Capitalization of intangible non-current assets	(68, 538)	(39, 865)
IV.3	Sales of non-current assets	3.652	16,561
IV.4	Loans granted	(89, 880)	(2,083,425)
IV.5	Loans regained		500,000
	Net cash flows from the investing activities	(1,338,561)	(1,808,743)

AB SNAIGĖ, company code 249664610, Pramonės str. 6, Alytus Lithuania
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2015
(all amounts are in EUR unless otherwise stated)

Ш.	Cash flows from the financial activities	(436, 770)	1,491,678
III.1	Cash flows related to the shareholders of the company
III.1.1	Issue of shares
III.1.2	Shareholders' contributions for covering losses
III.1.3	Sale of own shares
III.1.4	Payment of dividends
III.2	Cash flows arising from other financing sources
III.2.1	Subsidies received	202,321	4,131
III.2.1.1	Inflows from non-current loans		2,800,000
III.2.1.2	Loans repaid	(639,091)	(1,312,453)
III.2.2	Finance lease received
III.2.2.1	Payments of leasing (finance lease) liabilities
III.3	Other decreases in the cash flows from financial activities
III.4.	Redemption of issued securities
	Net cash flows from the financial activities	(436, 770)	1,491,678

IV.	Cash flows from extraordinary items
IV.1.	Increase in cash flows from extraordinary items
IV.2.	Decrease in cash flows from extraordinary items
IV.	The influence of exchange rates adjustments on the balance of cash and cash equivalents
IVI.	Net increase (decrease) in cash flows	835,931	308,222
VII.	Cash and cash equivalents at the beginning of period	1,222,254	691,666
VIII.	Cash and cash equivalents at the end of period	2,058,185	999,888

Managing Director

Financial Director

Gediminas Čeika

Mindaugas Sologubas

AB SNAIGÉ, company code 249664610, Pramonès str. 6, Alytus Lithuania
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2015
(all amounts are in EUR unless otherwise stated)

Statement of changes in equity

	authorised Paid up	premium Share	shares (-) Own	Legal reserves			Other reserves		earnings (losses) Retained	TOTAL	sharehold Minority ers	TOTAL
	capital			Compulsory	own shares acquiring For	For social needs	investments For	exchange Currency reserve
Balance as at 31 December 2013	11,475,439	1,650,445	$\circ$	890,063		8,689	1,442,018	(14, 563)	(5, 937, 344)	9,514,747	489	9,515,236
Total registered income and expenses as of 2014 QI-III									364,078	364,078		364,078
Formed reserves				11,368					(11,368)	$\circ$	$\circ$	$\circ$
Other changes								(15, 831)		(15, 831)		(15, 831)
Cover of losses		(1,650,445)				(8,689)	(1,442,018)		3,101,152	$\circ$	$\circ$	$\circ$
Balance as at 30 September 2014	11,475,439			901,431		$\circ$		(30, 394)	(2,483,482)	9,862,994	489	9,863,483
Total registered income and expenses as of 2014 QIV									(1, 118, 759)	(1, 118, 759)	(135)	(1, 118, 894)
Formed reserves
Other changes								(6, 101)		(6, 101)	$\circ$	(6, 101)
Balance as at 31 December 2014	11,475,439	$\circ$		901,431		$\circ$		(36, 495)	(3,602,241)	8,738,134	354	8,738,488
Total registered income and expenses as of 2015 QI-III									897,221	897,221	(48)	897,173
$\subset$ Formed reserves
Transfers from reserves
Other changes	15,056							(8,990)		6,066		6,066
Balance as at 30 September 2015	11,490,495	$\circ$		901,431				(45, 485)	(2,705,020)	9,641,421	306	9,641,727
Managing Director			Gediminas Čeika
Financial Director			Mindaugas Sologubas
												page 9

EXPLANATORY NOTES

1 Basic information

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

Pramonės str. 6, Alytus, Lithuania.

The Company is engaged in producing refrigerators and refrigerating equipment. The Company was registered on 1 April 1963. The Company's shares are traded on the Baltic Secondary List of the NASDAQ OMX Vilnius stock exchange.

Main shareholders of AB Snaigė as on September 30, 2015 and December 31, 2014 were:

		September 30, 2015	December 31, 2014
	Number of shares owned	Share of total capital, %	Number of shares owned	Share of total capital, %
VAIDANA UAB	36,096,193*	91.10%	36,096,193*	91.10%
Other shareholders	3,526,202	8.90%	3,526,202	8.90%
Total	39,622,395	100%	39,622,395	100%

*Out of this amount 4,584,408 units shares UAB Vaidana mortgage to bank, under a pledge agreement, to ensure financial obligations (31 December 2014 - 4,584,408 units).

All the shares of the Company are ordinary registered intangible shares with the par value of 0.29 euro each and were fully paid as at 30 September 2015 and 31 December 2014. The Company did not hold its own shares.

As at 30 September 2015 UAB Vaidana was ultimately owned by Tetal Global Ltd. (intermediate shareholders are Furuchi Enterprises Ltd and Hymana Holdings Ltd.).

The Group consisted of AB Snaige and the followings subsidiaries as at 30 September 2015 (hereinafter – "the Group"):

Company	Country	Percentage of the shares held by the Group	Profit (loss) for the reporting year	Shareholders' equity
TOB Snaige Ukraina	Ukraine	99%	4,231	15,389
UAB Almecha	Lithuania	100%	96,654	458,838

The Board of the Company consist of 5 members; however, 2 representatives of OAO Polair and 3 independent representatives (as at 31 December 2014, the Board consisted of 5 members, 2 representatives of OAO Polair and 3 independent representatives).

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

UAB Almecha (Alytus, Lithuania) was established on 9 November 2006. The main activities of the company are production of refrigerating components and equipment. The Company acquired 100% of the Company's shares.

As at 30 September 2015 the number of employees of the Group was 742 (as at 31 December 2014 – 722).

2 Accounting principles

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

2.1. Basis of preparation

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

These financial statements are prepared on the historical cost basis.

2.2. Going concern

The Group's current assets exceeded current liabilities by EUR 5,252 thousand of 30 September 2015 (whereas in the year 2014, December 31st EUR 2,245 thousand).

• liquidity ratios: general coverage ratio (total current assets / total current liabilities) was 1.46 (1.20 in 31 December 2014),
• quick ratio ((total current assets − inventories) / total current liabilities) 1.11 (in 31 December 2014 0.74),
• the Group earned EUR 897 thousand profit before tax (in 2014 over the same period EUR 366 thousand profit before tax),
• commitment ratios: the ratio of debt/asset was 0.72 (whereas in the year 2014, December 31st 0.72).

These financial statements for the year 2015 have been prepared based on the assumption that the Group will be able to continue as a going concern for at least 12 months.

The going concern is based on the following assumptions:

• in order to finance the working capital the Group is planning to perform successful sales of finished goods and the continuation of cooperation only with trustful partners. Trade payables are planned to be decreased using free operational cash flows.

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

2.3. Presentation currency

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

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

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

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

Since 1 January 2015 Lithuanian litas is pegged to euro at the rate of 3.4528 litas for 1 euro, and the exchange rates in relation to other currencies are set daily by the Bank of Lithuania.

The applicable exchange rates of the functional currencies as at the 30 September 2015 were:

	30 09 2015
UAH	24.10247
USD	1.1204

2.4. Principles of consolidation

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

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

From 1 January 2010 losses of a subsidiary are attributed to the non-controlling interest even if that results in a deficit balance. Losses prior to 1 January 2010 were not reallocated between non-controlling interests and the parent shareholders.

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

2.5. Intangible assets, except for goodwill

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

Research and development

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

Following initial recognition of the development expenditure as an asset, the cost model is applied requiring the asset to be carried at cost less any accumulated amortisation and accumulated impairment losses. Amortisation of the asset begins when development is complete and the asset is available for use. It is amortised over the period of expected future benefit.

Licenses

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

Software

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

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

2.6. Tangible non-current assets

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

The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. An impairment loss is recognised in the statement of comprehensive income, whenever estimated.

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

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

Buildings and structures (including investment property)	15 - 63 years
Machinery and equipment	5 - 15 years
Vehicles	4 - 6 years
Other property, plant and equipment	3 - 8 years

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

2.7. Non-current assets held for sale

Non-current assets classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell. Non-current assets are classified as held for sale if their carrying amounts will be recovered through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset is available for immediate sale in its present condition. Property, plant and equipment once classified as held for sale are not depreciated.

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

2.8. Inventories

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

2.9. Receivables and loans granted

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

2.10. Cash and cash equivalents

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

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

2.11. Borrowings

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised, otherwise – expensed as incurred. No borrowing costs were capitalised as at 30 September 2015 and 31 December 2014.

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

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

2.12. Derivative financial instruments

Derivative financial instruments are initially recognised at fair value on the date the derivative contract is entered into. Subsequent to initial recognition and measurement, outstanding derivatives are carried in the statement of financial position at the fair value. Fair value is determined using the discounted cash flow method applying the effective interest rate. The estimated fair values of these contracts are reported on a gross basis as financial assets for contracts having a positive fair value; and financial liabilities for contracts with a negative fair value. Contracts executed with the same counterparty under legally enforceable master netting agreements are presented on a net basis. The Group had no derivative contracts outstanding as at 30 September 2015 and 31 December 2014.

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

2.13. Factoring

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

2.14. Financial lease and operating lease

Finance lease – the Group as lessee

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

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

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

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

Operating lease – the Group as lessee

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

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

2.15. Grants and subsidies

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

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

2.16. Provisions

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

2.17. Non-current employee benefits

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

2.18. Revenue recognition

Revenue is recognised when it is probable that the economic benefits associated with the transaction will flow to the Group and the amount of the revenue can be measured reliably. Sales are recognised net of VAT and discounts. Revenue from sales of goods is recognised when delivery has taken place and transfer of risks and rewards has been

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

In these consolidated financial statements intercompany sales are eliminated.

2.19. Impairment of assets

Financial assets

Financial assets are reviewed for impairment at each balance sheet date.

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

Other assets

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

2.20. Subsequent events

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

2.21. Offsetting and comparative figures

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

3 Segment information

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

Information for the reporting period 30 September 2015 and 30 September 2014 with respect to geographical location of the Group's sales and assets (in EUR thousand) is presented below:

AB SNAIGĖ, company code 249664610, Pramonės str. 6, Alytus Lithuania CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2015 (all amounts are in EUR unless otherwise stated)

Group	Total segment sales revenue		Inter-segment sales		Sales revenue		Total assets by its location *
	2015	2014	2015	2014	2015	2014	2015	2014
Russia	474	467	-	-	474	467	9,565	397
Ukraine	3,618	4,083	-	-	3,618	4,083	1,101	2,060
Western Europe	15,175	11,276	-	-	15,175	11,276	3,656	2,521
Eastern Europe	7,460	6,668	-	-	7,460	6,668	1,751	1,096
Lithuania	5,542	6,208	(2,226)	(3,134)	3,316	3,074	17,362	24,682
Other CIS countries	2,872	7,092	-	-	2,872	7,092	1,275	2,010
Other Baltic states	950	645	-	-	950	645	187	69
Other countries	793	-	-	-	793	-	-	-
Total	36,884	36,439	(2,226)	(3,134)	34,658	33,305	34,897	32,835

Transactions between the geographical segments are generally made on commercial terms and conditions. Intersegments sales are eliminated on consolidation.

In 2015 for the first half of the year the sales to the five largest buyers comprised 42.48 % of total sales, including: the first buyer 14.09%, the second buyer 12.02 %, the third buyer 7.68 %, the fourth buyer 4.37 %, the fifth buyer 4.32%, (in 2014 – 53.29 %, including: the first buyer 17.64 %, the second buyer 13.17 %, the third buyer 11.05 %, the fourth buyer 7.92%, the fifth buyer 3.51%).

Subsidiary company UAB "Almecha" is signed 2,103 thousand euro value contract. Company is obligated to manufacture and install the stone wool production line till 16 of March 2016. By applying the method of the completion of the works on 30 of September 2015 is determined:

• The fulfillment of the contract 38 percent
• The accrued income 793 thousand euro
• The accumulated costs 653 thousand euro
• The calculated profit 140 thousand euro

The accrued receivables is included in balance in the other current asset (15 note).

4 Cost of refrigerators and freezers sales

	30 09 2015	30 09 2014
Raw materials	20,816,964	20,560,546
Salaries and wages	2,685,893	2,028,187
Energy	535,114	543,012
Depreciation and amortisation	724,919	743,956
Other	1,764,675	2,282,449
Total:	26,527,565	26,158,150

5 Other income

	30 09 2015	30 09 2014
Income from transportation services	116,863	81,057
Income from rent of premises	9,765	9,652
Gain on disposal of property, plant and equipment	1,137	5,845
Income from rent of equipment	70	70
Other	40,177	27,500
Total:	168,012	124,124

6 Operating expenses

	30 09 2015	30 09 2014
Selling expenses	3,025,211	2,875,462
General and administrative expenses	1,677,096	1,867,753
	4,702,307	4,743,215
7 Other operating expenses
	30 09 2015	30 09 2014
Transportation expenses	97,134	73,383
Expenses from rent of equipment	-	-
Gain on disposal of property, plant and equipment	-	-
Other	28,331	11,833
	125,465	85,216
8 Financial income
	30 09 2015	30 09 2014
Foreign currency exchange gain	69,296	40,724
Interest income and other	399,831	344,231
	469,127	384,955
9 Financial expenses
	30 09 2015	30 09 2014
Interest expenses	608,842	501,099
Foreign currency exchange loss, net	-	-
Realized loss on foreign currency derivatives	-	-

Loss of foreign currency translation transactions - 5,437 Other 15,055 7

10 Intangible assets

Balance sheet value

623,897 506,543

	30 09 2015	31 12 2014
Development costs
Software, license	1,282,590 104,237	1,478,420 60,334
Other intangible assets	272,873	53,987
Total:	1,659,700	1,592,741

Non-current intangible assets depreciation expenses are included under operating expenses in the profit (loss) account.

Over 2015 nine months, the Group has accumulated EUR 217 thousand (2014 - EUR 232 thousand) of intangible assets depreciation.

Part of non-current intangible assets of the Group with the acquisition value of EUR 2,860 thousand as at 30 September 2015 was fully amortised (EUR 2,825 thousand as at 31 December 2014) but was still in use.

11 Non-current tangible assets

	Balance sheet value
	30 09 2015	31 12 2014
Land and buildings	2,302,704	2,410,730
Machinery and equipment	3,808,614	3,438,545
Vehicles and other property	670,985	719,312
Construction in progress and prepayments	242,418	207,150
Total:	7,024,721	6,775,737

The depreciation charge of the Group's property, plant and equipment and investment property on 30 September, 2015 amounts to EUR 1,040 thousand (EUR 1,051 thousand for 2014). The amount of EUR 969 thousand for 2015 (EUR 1,014 thousand for 2014) was included into production costs. The remaining amount of EUR 71 thousand (EUR 37 thousand for 2014) was included into administration expenses in the Group's statement of comprehensive income.

At 30 September 2015 buildings and investment properties with land lease right of the Group with the net book value of EUR 2,106 thousand, (as of 31 December 2014 – EUR 2,193 thousand) and machinery and equipment of the Group with the net book value of EUR 2,173 thousand (as of 31 December 2014 – EUR 2,757 thousand) were pledged to banks as a collateral for the loans (Note 21).

12 Loans granted

	30 09 2015	31 12 2014
Loan to OAO Polair	7,807,048	7,479,724
Loan to ZAO Zavod Sovitalpodmaš	1,592,508	1,530,391
Loan to UAB Vaidana	271,776	181,896
Loans receivable	9,671,332	9,192,011
Including:
Non-current borrowings	9,399,556	9,010,115
Current borrowings	271,776	181,896
Total	9,671,332	9,192,011

As at 30 September 2015 the Company have a loan of EUR 6,775 thousand issued to the related company OAO Polair and calculated interest of EUR 1,032 thousand with maturity in 2017. As from 1 February 2015, the loan is subject to annual interest of 1-month EURIBOR +6.5% (till 1 February 2015 with 6.5% fixed annual interest).

As at 30 September 2015, the Company have a loan to ZAO Zavod Sovitlprodmaš of EUR 1,500 thousand and calculated interest of EUR 93 thousand with maturity in 2016. As from 1 February 2015, the loan is subject to annual interest of 1-month EURIBOR +5.5% (till 1 February 2015 the loan to annual interest linked to EURIBOR +5.25%).

On 24 November 2015 was signed agreement of cession according which the intermediate shareholder HYMANA HOLDINGS LIMITED has obtained the right to claim to related companies: OAO Polair and ZAO Zavod Sovotalprodmaš according the Company's provided loans with interest. From the principal unpaid amount (8,275 thousand euro) is interest – bearing : 1 month EURIBOR + 6.5 %. The debt will be repaid till 1 June 2018.

As at 30 September 2015 the Company and the Group have a loan granted to its shareholder UAB Vaidana of EUR 272 thousand and calculated interest of EUR 17 thousand with maturity in 31 December 2015. As from 1 February 2015, the loan is subject to annual interest of 1-month EURIBOR +5.5% (till 1 February 2015 with 6.5% fixed annual interest).

13 Inventories

	30 09 2015	31 12 2014
Raw materials, spare parts and production in progress	3,207,548	3,031,493
Finished goods	652,065	2,115,274
Other	92,301	67,583
Total inventories, net	3,951,914	5,214,350

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

As at 30 September 2015 the Grope and Company has no legal restrictions on inventories.

14 Trade receivables

	30 09 2015	31 12 2014
Receivables	10,040,536	7,489,477
Less: impairment allowance for doubtful receivables	(963,840)	(1,016,744)
	9,076,696	6,472,733

Trade receivables are non-interest bearing and are generally on 30 – 90 days terms.

As at 30 September 2015 100% impairment was accounted trade receivables of the Group in gross values of EUR 964 thousand (as at 31 December 2014 – EUR 1,017 thousand). Change in impairment allowance for receivables was accounted for within administrative expenses.

Trade receivables from the Group in the amount of EUR 5,446 thousand as at 30 September 2015 (EUR 3,295 thousand as at 31 December 2014) were insured with credit insurance by Atradius Sweden Kreditförsäkring Lithuanian branch. Trade receivables from Ukraine, Moldova, Russia and other CIS countries are not insured.

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

	30 09 2015	31 12 2014
Balance at the beginning of the period	(1,016,744)	(82,304)
Charge for the year	-	(949,119)
Write-offs of trade receivables	-	-
Effect of the change in foreign currency exchange rate	3,845	13,293
Amounts paid	49,059	1,386
Balance in the end of the period	(963,840)	(1,016,744)

Receivables are written off when it becomes evident that they will not be recovered.

The ageing analysis of trade receivables as of 30 September 2015 and 31 December 2014 is as follows:

		Trade receivables past due but not impaired
	Trade receivables neither past due nor impaired	Less than 30 days	30 – 60 days	60 – 90 days	90 – 120 days	More than 120 days	Total
2015	7,280,002	809,272	431,629	450,602	23,007	82,184	9,076,696
2014	3,922,616	1,160,859	493,151	387,747	331,273	177,087	6,472,733

As of 30 September 2015 the Group has signed factoring agreement with recourse, therefore no limitations on disposable assets been present.

15 Other current assets

	30 09 2015	31 12 2014
Prepayments and deferred expenses	145,086	38,016
VAT receivable	282,443	171,913
Compensations receivable from suppliers	625	-
Restricted cash	4,344	4,344
Granted loans	271,776	181,896
Other receivables	58,548	186,178
Notional income	792,739	-
Less: valuation allowance for doubtful other receivables	-	-
	1,555,561	582,347

AB SNAIGĖ, company code 249664610, Pramonės str. 6, Alytus Lithuania CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2015 (all amounts are in EUR unless otherwise stated)

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

	30 09 2015	31 12 2014
Balance at the beginning of the period	-	-
Charge for the year	-	-
Effect of the change in foreign currency exchange rate	-	-
Amounts paid	-	-
Write off	-	-
Balance in the end of the period	-	-

16 Cash and cash equivalents

	30 09 2015	31 12 2014
Cash at bank	2,055,812	1,222,254
Cash on hand	2,373	-
	2,058,185	1,222,254

17 Share capital

According to the Law on Companies of the Republic of Lithuania the Company's total equity cannot be less than 1/2 of its share capital specified in the Company's by-laws. As at 30 September 2015 the Company was in compliance with this requirement.

18 Reserves

Legal reserve

A legal reserve is a compulsory reserve under Lithuanian legislation. Annual transfers of not less than 5% of net profit are compulsory until the reserve reaches 10% of the share capital. As at 30 September 2015 legal reserve was not fully formed yet.

As of 30 September 2015 the legal reserve amounted to EUR 901 thousand.

Non-restricted reserves

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

Foreign currency translation reserve

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

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

19 Subsidies

Balance as at 1 January 2013	3,100,058
Received during the period	-
Balance as at 31 December 2013	3,100,058
Received during the period	12,261
Balance as at 31 December 2014	3,112,319
Received during the period	72,624
Balance as at 31 March 2015	3,184,943
Received during the period	71,070
Balance as at 30 June 2015	3,256,013
Received during the period	58,626
Balance as at 30 September 2015	3,314,639
Accumulated amortisation as at 1 January 2013	2,887,239
Amortisation during the period	26,446
Accumulated amortisation as at 31 December 2013	2,913,685
Amortisation during the period	25,424
Accumulated amortisation as at 31 December 2014	2,939,109
Amortisation during the period	7,087
Accumulated amortisation as at 31 March 2015	2,946,196
Amortisation during the period	8,905
Accumulated amortisation as at 30 June 2015	2,955,101
Amortisation during the period	11,889
Accumulated amortisation as at 30 September 2015	2,966,990
Carrying amount as at 30 September 2015	347,649
Carrying amount as at 31 December 2014	173,210

The subsidies were received for the renewal of production machinery and repairs of buildings in connection with the elimination of CFC 11 element from the production of polyurethane insulation and filling foam, and for elimination of green house gases in the manufacturing of domestic refrigerators and freezers. Subsidies are amortised over the same period as the machinery and other assets for which subsidies were designated when compensatory costs are incurred. The amortisation of subsidies is included in production cost against depreciation of machinery and reconstruction of buildings for which the subsidies were designated.

20 Provisions for guarantee related liabilities

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

AB SNAIGĖ, company code 249664610, Pramonės str. 6, Alytus Lithuania CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2015

(all amounts are in EUR unless otherwise stated)

Changes over the reporting period were:

	30 09 2015	31 12 2014
1 January,	660,820	727,409
Changes over reporting period (Note 6)	135,255	291,853
Used	(127,126)	(358,442)
Foreign currency exchange effect	-	-
	668,949	660,820
Warranty provisions are accounted for:		30 09 2015
- non- current		228,169
- current		440,780
		31 12 2014
- - non- current		228,169
- current		432,651
21 Borrowings
	30 09 2015	31 12 2014
Non-current borrowings
Non-current borrowings with fixed interest rate	-
Non-current borrowings with variable interest rate	13,135,656	10,501,000
Ordinary bonds	-	-
Interest on bonds	-	-
Current borrowings	13,135,656	10,501,000
Convertible bonds	-	-
Ordinary bonds	-	-
Current borrowings with fixed interest rate	-	-
Long-term loans of the current year	212,800	3,486,547
	212,800	3,486,547
Total	13,348,456	13,987,547

Borrowings with variable interest rate bear 1-month EURIBOR + 5.25 and 1-month EURIBOR + 6.25 annual interest rate and for factoring for factoring 1-month EURIBOR + 1.75%, as of 30 September 2015 (1-month EURIBOR + 5.25, annual interest rate and for factoring 1-month EURIBOR + 1.75% annual interest rate as at 31 December 2014).

As of 30 September 2015 the Group's buildings with the carrying amount of EUR 2,106 thousand, including Company's buildings, with the carrying amount EUR 2,106 thousand (as of 31 December 2014 – EUR 2,193 thousand), the Group's machinery and equipment with the net book value of EUR 2,173 thousand, including Company's machinery and equipment with the net book value of EUR 2,059 thousand (as of 31 December 2014 – EUR 2,757 thousand) were pledged to the banks for the loans and guarantee provided.

Borrowings in national and foreign currencies:

	30 09 2015	31 12 2014
Borrowings denominated in:
EUR	13,348,456	13,987,547
USD	-	,-
LTL	-	-
RUB	-	-
	13,348,456	13,987,547

Repayment schedule for borrowings:

	Fixed interest rate	Variable interest rate
2015	-	212,800
2016		1,950,000
2017 - 2018	-	11,185,656
	-	13,348,456

22 Financial leasing

The Group has not financial lease payables on 30 September, 2015.

23 Operating lease

The Group have concluded several contracts of operaing lease of land and premises. The terms of lease do not include restrictions of the activities of the Group in connection with the dividends, additional borrowings or additional lease agreements. In 2015 the lease exzpenses of the Group amounted to EUR 50 thousand (in 2014 EUR 55 thousand).

Planned operaiting lease expenses of the Group in 2015 will be EUR 93 thousand.

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

Future lease payments according to the signed lease contracts are not defined as contracts might be cancelled upon the notice within one month

24 Other current liabilities

	30 09 2015	31 12 2014
Salaries and related taxes	629,318	280,199
Vacation reserve	383,855	337,383
Accrued interest	19,782	20,153
Other taxes payable	6,173	50,436
Other payables and accrued expenses	608,512	52,712
	1,647,640	740,883

Terms and conditions of other payables:

• - Other payables are non-interest bearing and have the settlement term up to six months.
• - Interest payable is normally settled monthly throughout the financial year.

25 Basic and diluted earnings (loss) per share

	30 09 2015	31 12 2014
Shares issued 1 January	39,622,395	39,622,395
Weighted average number of shares	-	-
Net result for the year, attributable to the parent company	897,173	(754,681)
Basic profit (loss) per share, in EUR	0.02	(0.019)

26 Risk and capital management

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

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

Credit risk

As at 30 September 2015 and 31 December 2014, the maximum exposure to credit risk is represented by the carrying amount of each financial asset, consequently, the Group's and the Company's management considers that its maximum exposure is reflected by the amount of loans receivable from related parties, trade and other receivables, net of impairment allowance, and the amount of cash and cash equivalents recognised at the date of the statement of financial position. Credit risk or risk that a counterparty will not fulfil its obligations, is controlled by credit terms and monitoring procedures, using services of external credit insurance and debt recovery agencies.

As at 30 September 2015 and 31 December 2014, the credit risk (in EUR thousand) was related to

	30 09 2015	31 12 2014
Loans receivable from related parties	9,689	9,200
Trade and other receivables	9,077	6,473
Cash and cash equivalents	2,058	1,222
	20,824	16,895

As at 30 September 2015 and 31 December 2014 the main part of the loans granted consists of the loan granted to related company OOO Polair. This company is the largest and a well known producer and seller of refrigerating equipment in Russia: its non-settlement risk is low.

The concentration of the Group's trade partners is not large. The largest credit risk related to trade receivables according to clients as at the reporting date and 31 December 2014 (in EUR thousand):

	2015	%	2014	%
Client 1	1,409	16	1,494	23
Client 2	970	11	1,179	18
Client 3	919	10	761	12
Client 4	809	9	595	9
Client 5	494	5	230	4
Client 6	431	5	216	3
Client 7	298	3	181	3
Other clients	4,711	52	2,834	44
Impairment	(964)	(11)	(1,017)	(16)
	9,077	100	6,473	100

	30 09 2015	31 12 2014
Western Europe	3,656	2,225
Ukraine	1,087	560
Lithuania	958	473
Eastern Europe	1,751	1,219
Other CIS countries	1,275	1,787
Other Baltic states	187	27
Russia	163	182
	9,077	6,473

Trade receivables according to geographic regions (in EUR thousand):

In 2015 nine months 10.5 % and 4.4 % the Group's sales were to Ukraine and Uzbekistan (in 2014, 12.53% and 15.09% sales respectively).

The Group's receivables from goods sold in Ukraine and Uzbekistan as at 30 September 2015 amounted to EUR 1,087 thousand and EUR 919 thousand (in 2014, EUR 560 thousand and EUR 1,494 thousand respectively).

Political and social unrest has deepened the ongoing economic crisis and has resulted in a widening of the state budget deficit. The final resolution and the effects of the political and economic crisis are difficult to predict but may have further severe effects on the Ukrainian economy.

Whilst management believes it is taking appropriate measures to support the sustainability of business in the current circumstances, a continuation of the current unstable business environment could negatively affect the Group's and the Company's results and financial position in a manner not currently determinable. These consolidated and the Company's financial statements reflect management's current assessment of the impact of the Ukrainian business environment on the operations and the financial position of the Group and the Company. As at 30 September 2015, impairment allowance for receivables from goods sold EUR 964 thousand, including the Ukraine buyers EUR 862 thousand, the Russian buyers EUR 53 thousand and other regional buyers EUR 49 thousand (as at 31 December 2014 EUR 1,017 thousand, including the Ukraine buyers EUR 865 thousand, the Russian buyers EUR 102 thousand and other regional buyers EUR 50 thousand).

The Company's management believes that the maximum risk equals to trade receivables, less recognised impairment losses at the reporting date. The Group and the Company do not provide guarantees for obligations of other parties, except for those disclosed in Note 14.

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

Trade receivables from the Group in the amount of EUR 5,446 thousand as at 30 September 2015 (EUR 3,295 thousand as at 31 December 2014) were insured with credit insurance by Atradius Sweden Kreditförsäkring Lithuanian branch.

Trade receivables from Ukraine, Moldova, Russia and other CIS countries are not insured.

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

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

• - the client is late with settlement for 60 and more days, receivable amount is not covered by insurance and it does not come from subsidiaries;
• - factorised clients late with settlement for 30 and more days;
• - client is unable to fulfil the obligations assumed;
• - reluctant to communicate with the seller;
• - turnover of management is observed;
• - reorganisation process is observed;
• - information about tax penalties, judicial operation and restrictions of the use of assets is observed;
• - bankruptcy case;
• - inconsistency and variation in payments;
• - other criteria.

Interest rate risk

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

As at 30 September 2015 and 2014 the Group did not use any financial instruments to hedge against interest rate risk.

Liquidity risk

The Group's and the Company's policy is to maintain sufficient cash and cash equivalents by using cash flows statements with liquidity forecasting for future periods. The statement comprises predictable cash flows of monetary operations and effective planning of cash investment if it is necessary.

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

The Group seeks to maintain sufficient financing to meet the financial liabilities on time In January 2015 The Grope management reached an agreement with the bank (UniCredit) on the loan repayment schedule. Based on the revised repayment schedule the Company shall repay EUR 852 thousand (under original schedules, EUR 3,487 thousand).

As at 30 September 2015 the Company already has returned EUR 637 thousand loans.

Foreign exchange risk

The Group significantly reduced income earned in USD. Most of income is earned in euro by the Group.

Capital management

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

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

A company is obliged to keep its equity up to 50% of its share capital, as imposed by the Law on Companies of Republic of Lithuania. As of 30 September 2015 the Company complied with this requirement. There were no other significant externally imposed capital requirements on the Group.

27 Commitments and contingencies

The Company has entered into suretyship agreements with OAO Petrokomerc Bank; based on the agreements, the Company assumes joint and several liability foe the loans of OAO Polair.

Company received copy of claim from PAO "FK Otkritie", where it was stated that PAO "FK Otkritie" took over the OAO "Petrokomerc" right of claim and required the Moscow arbitrage court to address OAO "Polair" obligations fulfillment to the Company.

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

UAB Vaidana and AB Šiaulių Bankas has signed a financial guarantee agreement, in accordance to witch UAB Vaidana collateralized ė,įūė thousand held share of AB Snaigė thus transferring the non-pecuniary right of the shareholders retaining the right to dividens.

By the suretyship agreement No 2012-02-12 the Company guarantees proper fulfilment of UAB Vaidana financial obligations with all its present and future assets in favour of UAB Šiaulių Bankas in relation to received loan of EUR 4 million with repayment term postponed until 27 March 2017 (the initial repayment term was 27 March 2015) The fair value of the suretyship as at 30 September 2015 and 31 December 2014 was immaterial.

The General Meeting of shareholders of Snaige AB was held on 30 April 2015. At the meeting following resolutions were made:

• Approved the Company's financial statements for the year 2014
• KPMG Baltics, UAB was elected for 2015 auditing purposes of annual financial statements
• Board members were elected for the new term and till 5 members decreased the number of board members. The audit committee was approved. The audit committee consists of 3 members.

• The authorized capital of the company recalculated in euro was approved. The authorized capital is equal 11,490,494.50 euro.

• The authorized capital of the Company is divided into 39 622 395 shares. The nominal value of one share is 0,29 euro. And changed the Articles of Association of Snaige AB which was registered on Register of Legal Entities on 26th of May, 2015.

28 Related party transactions

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

The related parties of the Group during 2015 and 2014 were as follows:

UAB Vaidana (shareholder);

Furuchi Enterprises Ltd. (intermediary company between the shareholder and the ultimate shareholder);

Hymana Holdings Ltd. (intermediary company between the shareholder and the ultimate shareholder);

Tetal Global Ltd. (ultimate shareholder);

OAO Polair (company controlled by ultimate shareholders);

ZAO Polair Nedvižimost (company controlled by ultimate shareholders);

Area Polair (company controlled by ultimate shareholders);

Polair Europe S.R.L (company controlled by ultimate shareholders);

Polair Europe Limited (company controlled by ultimate shareholders);

ZAO Rada (company controlled by ultimate shareholders);

ZAO Zavod Sovitalprodmaš (company controlled by ultimate shareholders).

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

In the period 2015 September 30 and 2014 December 31 the Group has not booked receivables value decreasing from any of the related parties.

Financial and investment transactions with the related parties:

	Loans received of loans					30 September 2015			31 December 2014
		Repayment	Interest revenue	Loans granted	Repayment of loans	Interest	expenses	Loans received	Repayment of loans	Interest expenses
UAB "Vaidana" (loan)		-	-	- 89,880		-	9,601	111,229	-	8,604
OAO "Polair"		-	-	-			327,324	500,000	500,000	440,877
Sovitalprodmash				-		-	62,117	1,500,000	-	30,391
		- -		- 89,880		-	265,042	2,111,229	500,000	479,872
30 09 2015				Purchases		Sales		Receivables		Payables
OAO "Polair"				673,437			-		76	219,441
				673,437			-		76	219,441
31 12 2014
				Purchases		Sales		Receivables		Payables
OAO "Polair"				701,940			-		-	127,145
				701,940			-		-	127,145

AB SNAIGĖ, company code 249664610, Pramonės str. 6, Alytus Lithuania CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2015 (all amounts are in EUR unless otherwise stated)

The Company's transactions carried out with subsidiaries (in EUR thousand):

	30 09 2015		31 12 2014
	Purchases	Sales	Purchases	Sales
UAB Almecha	1,203	1,071	2,228	1,931
TOB Snaigė Ukraina	10	-	28	-
	1,213	1,071	2,256	1,931

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

The carrying amount of loans and receivables from subsidiaries on 30 September 2015 and 31 December 2014:

	2015	2014
Non-current receivables
Trade receivables from UAB Almecha	-	-
Total non-current receivables	-	-
Current receivables
Trade receivables from UAB Almecha	1,414,624	305,092
Total current receivables	1,414,624	305,092

The analysis of receivables from subsidiaries and granted loans during the period on 30 September 2015 and 2014:

	Receivables from		Receivables from subsidiaries and granted loans past	due but not impaired
	subsidiaries and granted loans neither past due nor impaired	Less than 30 days	30 – 60 days	60 – 90 days	90 – 120 days	More than 120 days	Total
2015	1,414,624	-	-	-	-	-	1,414,624
2014	305,092	-	-	-	-	-	305,092

Payables to subsidiaries as of 30 September 2015 and 31 December 2014 (included under the trade payables caption in the Company's statement of financial position):

	2015	2014
TOB Snaigė Ukraina	-	2,400
UAB Almecha	199,759	415,178
Total	199,759	417,578

On the actual date of the Company reporting Company has not any valid guaranty agreements for subsidiaries.

Remuneration of the management and other payments

Remuneration (without Social Insurance) of the Company's and subsidiaries' management amounted to EUR 282 thousand and EUR 23 thousand, respectively, in 2015 (EUR 307 thousand and EUR 28 thousand in 2014, respectively), including Company's administracion (managing director and finace director) EUR 157 thousand while in 2014 EUR 183 thousand.

The management of the Group did not receive any other loans, guarantees; no other payments or property transfers were made or accrued.