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Panevezio Statybos Trestas

Interim / Quarterly Report Aug 29, 2014

2244_ir_2014-08-29_90b6a770-14a0-4508-9cf2-e0466e775156.pdf

Interim / Quarterly Report

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PANEVĖŽIO STATYBOS TRESTAS AB

Consolidated Interim Financial Statement and Consolidated Interim Report for Six Months of 2014

29 August 2014 Panevėžys

STATEMENT OF EXECUTIVE OFFICERS OF THE COMPANY

Hereby we confirm that based on the information available to us, the interim financial statement of the company and the group provided for the six months of the year 2014 made in accordance with the International Financial Reporting Standards is true and shows the assets. liabilities, financial state, profit or loss and cash flows of Panevėžio statybos trestas AB and the Group of Panevėžio statybos trestas AB in a correct manner, and that the review of business development and performance is indicated correctly in the interim report.

D. Perhins

Dalius Gesevičius Managing Director Panevėžio statybos trestas AB

DBeneues

Dalė Bernotaitienė Finance Director Panevėžio statybos trestas AB

P.Puzino g. 1, LT-35173, Panevėžys Tel. +370 45 505 503 Faks. +370 45 505 520 El.paštas [email protected]

AB SEB bankas B/k 70440 A/s LT517044060002635252 AB "Swedbankas" B/k 73000 A/s Lt947300010000074994

Reporting period $1.$

The consolidated interim report has been prepared for six months of the year 2014 expired on 30 June 2014.

$2.$ Main data about the issuer

Name of issuer Public limited liability company Panevėžio statybos
trestas
Authorized capital 16 350 000 Litas
Address of registered office P. Puzino Str. 1, LT-35173 Panevėžys, Lithuania
Telephone $(+37045)$ 505 503
Fax $(+37045) 505520$
E-mail [email protected]
Legal-organization form Public limited liability company
Registration date and place 30 October 1993, Panevėžys City Department
Registration No. AB 9376
Code at the register of enterprises 147732969
VAT code LT477329610
Administrator of legal entity register State Enterprise Centre of Registers
Web address www.pst.lt

Character of the main activity of the issuer $3.$

The main area of activity of the Company and its subsidiaries (the Group) is designing and construction of buildings, constructions, installations and communications of various purposes both in and outside Lithuania, real estate development.

4. Information on the Group

As of 30 June 2014, the Group of Panevėžio statybos trestas AB consists of the following companies:

Subsidiaries Type of activities Share
controlled
(per cent)
Registered address
Skydmedis UAB Construction: panel houses 100 Pramonės Str. 5,
Panevėžys
Tel.: +370 45 583341
Metalo meistrai UAB Construction 100 Tinklų Str. 7,
Panevėžys,
Tel. +370 45 464677
Vekada UAB Construction: electrical
installation
96 Marijonų Str. 36,
Panevėžys
Tel.: +370 45 461311
Panevėžio statybos trestas
AB and partner's
Vilniaus papėdė TŪB
Real estate development 69 Švitrigailos Str. 8,
Vilnius
Tel.: +370 5 2609405
Alinita UAB Construction: conditioning
equipment
100 Tinkly Str. 7,
Panevėžys
Tel.+370 45 467630
KINGSBUD Sp.zo.o. Intermediation services 100 A. Patli 16-400,
Suwalki, Poland
PS TRESTS SIA Construction 100 Vietalvas Str. 5, Riga
BALTILSTROIJ OOO Construction 100 Sovetskij Ave. 43,
Kaliningrad
Tel.: 0074012350435
Teritorija OOO Real estate development 87,5 Lunacharskovo Lane 43-
27, Cherepovets
Vologda County
PST Nordic AB Construction 100 Krossgatan 25
162 50 Vällingby
Stockholm County
PST Investicijos UAB Real estate development 68 Verkių Str. 25C, Vilnius
Tel.: +370 5 2728213
Subsidiaries of PST investicijos UAB:
Ateities projektai UAB Real estate development 100 Verkių Str. 25C, Vilnius
Šeškinės projektai UAB Real estate development 100 Verkių Str. 25C, Vilnius
Sakališkės UAB Real estate development 100 Verkių Str. 25C, Vilnius
Kauno erdvė UAB Real estate development 100 Verkių Str. 25C, Vilnius
Verkių projektas UAB Real estate development 100 Verkių Str. 25C, Vilnius
ISK Baltevromarket ZAO Real estate development 100 Pobeda Square 10,
Kaliningrad

5. Contracts with intermediaries in security public circulation

On 2 December 2013 after termination of the agreement with DNB bankas, AB Panevėžio statybos trestas AB signed the agreement for accounting for financial instruments with Financial Brokerage Company Finasta AB.

Data on trade in the securities of the issuer at the regulated markets 6.

The ordinary registered shares of Panevėžio statybos trestas AB, 16 350 000 pcs., the par value of each being one Litas, have been included in the official list of the Vilnius Stock Exchange (VSE) since 13 July 2006.

Share type Number of shares Par value Total par value Emission
(pcs.) (Litas) (Litas) code
Ordinary registered shares
(ORS)
16 350 000 16 350 000 101446

Changes in Panevėžio statybos trestas AB and OMX Baltic Benchmark GI indexes for the first half of 2014

Variation in the price of the Company shares at the Stock Exchange for the first half of 2014 (Litas)

Last price
30 June 2013
Average price
for I half
of 2014
Highest price
for I half
of 2014
Lowest price
for I half
of 2014
Last price
30 June 2014
$3.94$ Litas 3.68 Litas 4.25 Litas 3.11 Litas 4.25 Litas

7. Authorized capital of the Company and its structure

As of 30 June 2014, the authorized capital of the Company is 16 350 000 Litas, it is divided into 16 350 000 ordinary registered shares (hereinafter referred to as ORS), the par value of one share being 1.00 Litas. All shares are intangible and fully paid. The property right for the shares is proved by the record in the stock accounts. The shares of Panevėžio statybos trestas AB are traded at the Vilnius Stock Exchange. On 30 June 2014 the total number of the shareholders was 1954. The shareholders who under the ownership right hold or control more than 5 per cents of the authorized capital of the Company are as follows:

Full name of a shareholder
(company name, type, headquarter
address, company code)
Number of ordinary
registered shares held
by a shareholder under
ownership right (pcs.)
Share of the
authorized
capital held
$(\%)$
Portion of
votes granted
by the shares
held under
the
ownership
right $(\%)$
Portion of
votes owned
by the
shareholder
along with
acting
persons $(\% )$
Panevėžio keliai AB
S. Kerbedžio Str. 7, Panevėžys,
Company code: 147710353
8 138 932 49.78 49.78
SWEDBANK AS (ESTONIA) clients
Liivalaia 8, 15040 Tallinn, Estonia
Company code: 10060701
1 200 473 7.34 7.34
Freely negotiable shares 7 010 595 42.88 42.88

Neither the Company nor any of its subsidiary companies or any other person who would act in his/her own name but in the favour and using the means of the Company has purchased any shares of the Company.

8. Information on the performance results of the issuer

Referring to the unaudited data, during the first half of 2014 the Group of Panevėžio statybos trestas AB was on the income of 139.07 mln. Litas, that is by 5.8 per cents less than last year when the income of the Group amounted to 147.62 mln. Litas. For the first half of 2014 the net profit of the Group amounted to 5.6 mln. Litas, whereas for the first half of 2013 the Group had the loss in the amount of 2.94 mln. Litas.

Referring to the unaudited data, during the first half of 2014 Panevėžio statybos trestas AB was on the income of 100 mln. Litas, that is by 11 per cents less than last year. However, for the first

half of 2014 the net profit of the Company amounted to 4.8 mln. Litas, whereas for the first half of 2013 the Group had the loss in the amount of 1.1 mln. Litas.

The net profit of the Company was conditioned by successful activities in the major projects: construction of Joint Centre for Life Sciences and Related Buildings at Saulėtekio Ave. 9, Vilnius, construction of Klaipeda City Head Police Headquarters and supplementary buildings (parking areas), construction of the Aviation Fuel Base (engineering infrastructure facilities, transportation lines - access roads, railway) at the Air Force Base of the Lithuanian Armed Forces (NATO project) in Šiauliai, construction of Sludge Treatment Plant in Taurage.

Group Company
I half of
2012
I half of
2013
I half of
2014
I half of
2012
I half of
2013
I half of
2014
Income 111 430 147618 139 070 102 470 112 045 99 999
Gross profit 2483 10 537 16 522 6 0 93 6018 9353
Gross profit margin (per
cent)
2.23 7.14 9.45 5.95 5.37 9.35
Net profit $-7032$ $-2940$ 5 5 9 3 $-522$ $-1119$ 4798
Nets profit margin (per
cent)
$-6.31$ $-1.99$ 4.02 $-0.51$ $-1.00$ 4.8
Profit per share (Litas) $-0.41$ $-0.18$ 0.34 $-0.03$ $-0.07$ 0.29
Profit before taxes, interest,
depreciation and
amortization EBITDA
$-2675$ $-1330$ 8 5 4 2 3 207 458 6952
EBITDA margin (per cent) $-2.40$ $-0.9$ 6.14 3.13 0.41 6.95
Return on equity (per cent)
(ROE)
$-6.69$ $-2.58$ 4.45 $-0.40$ $-0.86$ 3.49
Return on assets or asset
profitability $(ROA)$
$-3.05$ $-1.37$ 2.30 $-0.25$ $-0.60$ 2.46
Return on investments
(RO)
$-6.07$ $-2.16$ 3.87 $-0.40$ $-0.84$ 3.43
Current liquidity ratio 1.73 2.17 1.97 1.95 2.27 2.61
Current liquidity ratio 1.19 1.61 1.41 1.64 2.23 2.54
General liquidity ratio 0.86 1.19 1.12 1.74 2.28 2.39
Asset to equity ratio 0.46 0.53 0.52 0.63 0.70 0.7
Book value per share 6.43 6.98 7.69 7.94 7.97 8.4
Ratio of share price and
book value (P/BV)
0.59 0.56 0.55 0.47 0.49 0.51

The performance results of Panevėžio statybos trestas AB Group and the Company are as follows (thousands Litas):

Income and net profit variation for the Group:

Income and net profit variation for the Company:

Income by activity types:

The operating income of the Company based on activity types is from building and erection activities. In the first half of 2014 the income from building and construction activities totalled 94%, the income from real estate amounted to 1.2%, made products amounted to 3.7% and other income amounted to 1.1%. In the first half of 2013 the income from building and construction activities totalled 94.9%, the income from real estate amounted to 0.4%, made products amounted to 2.29% and other income amounted to 1.8 %.

Group Company
(mln. Litas) I half of
2012
I half of
2013
I half of
2014
I half of
2012
I half of
2013
I half of
2014
Construction works 106.40 140.06 130.69 104.47 112.04 99.999
Real estate 0.52 0.65 1.64
Products produced 2.47 4.22 5.15
Other sale 2.03 2.69 1.59

Income by countries:

Group Company
(mln. Litas) I half of
2012
I half of
2013
I half of
2014
I half of
2012
I half of
2013
I half of
2014
Lithuania 85.54 94.69 92.89 85.16 87.83 90.26
Russian Federation 20.94 47.98 31.93 14.62 24.22 5.16
Latvia 4.58 4.58
Scandinavian
countries 1.92 1.92 8.86 2.70
Other countries 3.03 3.03 0.82

In the first half of 2014 the main activity of the Company was performed in Lithuania and made 90.3 % of all works carried out by the Company (78.4 % in the first half of 2013). The income of the Group from the works performed inside the country made 66.8 % of the income whereas in in the first half of 2013 it was 64.1 %.

9. Essential events having taken place during the first six financial months of the year

Panevėžio statybos trestas AB has signed the contract with Klaipeda University for designing and construction of a new dormitory. The total value of the contract amounts to approximately 10 mln. Litas. The project is going to be completed in 12 months.

The Company has signed the contract with Devold UAB regarding for the construction of a new textile factory in Panevėžys. The project value is about 39 mln. Litas and it is expected to be implemented in 12 months. The new factory, which will be equipped with modern geothermal heating system, will be located in Panevėžys FEZ in Janonio Street. The total area will be about 16 000 square meters.

Panevėžio statybos trestas AB has signed the contract with Ogvy UAB for reconstruction of the former hospital building complex to dwelling and office premises in Bokšto Street in Vilnius. The large - scope project the value of which amounts to tens of millions is expected to be

implemented in 3 years. Due to its historic and architectural value the building complex located in Vilnius old town is entered in the Lithuanian Register of Cultural Property.

On the 1st of August Panevėžio statybos trestas AB has started reorganisation and establishing branches. The specialised subdivisions will be reorganised to three branches: Betonas, Konstrukcija and Stogas where production capacities will be concentrated. Reorganisation of the Company is aimed at reducing operating costs and creating a more efficient performance model, which would ensure independent participation in the market for the branches of the company. It is expected that this will allow increasing performance efficiency, improving quality of the rendered services and achieving even better results.

10. Employees

During the first half of 2014, the average number of employees in Panevėžio statybos trestas AB Group was 1080 with 814 employees working for the Company.

Number of I half of 2013 I half of 2014
employees on payroll Group Company Group Company
Management 28 29
Specialists 298 229 294 221
Workers 816 642 760
Groups of
employees
Payroll
number
Higher
university
level
education
Higher non-
university
education
Community
college
education
Secondary
education
Incomplete
secondary
education
Management 26 23
Specialists 297 232 11 44 9
Workers 792 44 17 198 439 94

Employee grouping by education in Panevėžio statybos trestas AB Group:

Average gross wages:

Average salary/wage I half of 2013 I half of 2014
Litas Group Company Group Company
Management 7431 8937 5833 6790
Specialists 3443 3501 3217 3315
Workers 2106 2102 2342 2362

Employment agreements do not include any specific rights and obligations for employees or a part thereof.

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

The Articles of Association of the Company may be amended only by the General Meeting of the Shareholders by the qualified majority of votes that may not be less than 2/3 of all votes conferred by the shares held by the shareholders attending the meeting. The decision of the General Meeting of the shareholders regarding the amendment of the Articles of Association

13

shall be adopted in accordance with the procedure set forth in Article 27 or 30 of the Law on Companies of the Republic of Lithuania.

12. Bodies of the issuer

Referring to the Articles of Association of Panevėžio statybos trestas AB, the management bodies of the Company are the General Meeting of the Shareholders, the Board and the Managing Director. No Supervisory Board is formed in the company.

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

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

The activities of the Board are managed by the Chairman of the Board. The Chairman of the Board is elected by the Board from the members of the Board.

The Board elects and removes from the office the manager of the Company – the Managing Director, fixes his salary, sets other terms of the employment contract, approves his job description, gives incentives and imposes penalties.

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

The Board:

REMIGIJUS JUODVIRŠIS – the Chairman of the Board. No membership in the capital of the company. Membership in the activities or capital of the companies below:

COMPANY NAME CAPACITY NUMBER
OF SHARES
CAPITAL,
$\frac{0}{0}$
VOTES,
$\frac{0}{0}$
TERTIUS UAB 704 638 80 80
PANEVĖŽIO KELIAI AB Chairman of the Board 531 675 28.47 28.47
LAUKTUVĖS JUMS UAB Chairman of the Board 11 069 50.15 50.15
POKŠTAS UAB 111 50 50
KLOVAINIŲ SKALDA AB 203 526 3.78 3.78
GELBERA UAB Member of the Board 34 34 34
KELTECHA UAB Member of the Board
EMULTEKA UAB 14 14.0 14.0
GUSTONIŲ ŽŪT UAB Member of the Board 1 0 8 5 50.28 50.28
SPECIALIZUOTA
KOMPLEKTAVIMO 21 490 9.29 9.29
VALDYBA AB
NAUJASIS UŽUPIS UAB Chairman of the Board
Panevėžio statybos trestas AB Interim Financial Statement for Six Months of 2014
-- ---------------------------------------------------------------------------------- --
PST INVESTICIJOS UAB Member of the Board 16 407
CONVESTUS UAB Chairman of the Board 50 000 50 50
ALPROKA UAB Chairman of the Board
KAUNO TILTAI UAB 492 0.31 0.31
PANEVEŽYS UAB Bankrupt 157 191 49.98 49.98

Term of office: November 2010 through November 2014

No previous convictions.

GVIDAS DROBUŽAS - the Member of the Board member. No membership in the capital of the company. Membership in the activities or capital of the companies below:

COMPANY NAME CAPACITY NUMBER
OF SHARES
CAPITAL,% VOTES, %
PANEVĖŽIO KELIAI AB Member of the Board 473 236 25.33 25.33
LAUKTUVĖS JUMS UAB Member of the Board 11 001 49.85 49.85
POKŠTAS UAB Director 111 50.0 50.0
KLOVAINIŲ SKALDA AB 203 129 3.77 3.77
GELBERA UAB Member of the Board 34 34 34
EMULTEKA UAB 12 12.0 12.0
GUSTONIŲ ŽŪT UAB Member of the Board 1 0 5 7 48.98 48.98
PANEVĖŽYS UAB Bankrupt 157 225 49.98 49.98
SPECIALIZUOTA 21 470 9.28 9.28
KOMPLEKTAVIMO VALDYBA
AB
PST INVESTICIJOS UAB Chairman of the Board, 12 644 2.9 2.9
Director
CONVESTUS UAB President, 50 000 50 50
Member of the Board
ALPROKA UAB Member of the Board
KAUNO TILTAI UAB 492 0.31 0.31
IOCO UAB Director 100 000 100 100
TETRIUS UAB 176 159 20 20
PANODEN UAB Member of the Board

Term of office: November 2010 through November 2014

No previous convictions

IRMA ABRAMAVIČIENĖ - the Member of the Board. Membership in the capital of the companies below:

COMPANY NAME CAPACITY NUMBER
OF SHARES
CAPITAL,% VOTES, %
CONVESTUS UAB Internal auditor
PANEVĖŽIO KELIAI AB Member of the Board
PANODEN UAB Member of the Board
UKMERGĖS KELIAI UAB Member of the Board

Terms of office: November 2010 through November 2014

14

No previous convictions

VILIUS GRAŽYS - the Member of the Board. No membership in the capital of the company.

Membership in the activities or capital of the companies below:

COMPANY NAME CAPACITY NUMBER OF
SHARES
CAPITAL,% VOTES, %
AKVALDA UAB 500 33.33 33.33
EMULTEKA UAB
BASS UAB 40 40 40
PANEVĖŽIO STATYBOS TRESTAS AB Member of the Board
PANEVĖŽIO KELIAI AB Member of the Board 101735 5.45 5.45

Terms of office: November 2010 through November 2014

No previous convictions

ARTŪRAS BUČAS – the Member of the Board. No membership in the capital of the company.

COMPANY NAME CAPACITY NUMBER OF
SHARES
CAPITAL.% VOTES, %
DVARČIONIU KERAMIKA AB Shareholder 356 0.0036 0.0036
PANEVĖŽIO KELIAI AB Member of the Board

Terms of office: November 2010 through November 2014

No previous convictions

Administration:

DALIUS GESEVIČIUS – Head of the Company Administration, Managing Director. Holds 25 015 shares of the Company. University education (1984, Vilnius Civil Engineering Institute), construction engineer. No previous convictions.

DANGUOLĖ ŠIRVINSKIENĖ - Chief Accountant of the Company, Holds no shares of the Company. University education (1983, Lithuanian Agricultural Academy), qualification of accountant-economist. No previous convictions.

Audit committee:

Following Article 52 of the Law on Audit of the Republic of Lithuania, the General Meeting of Shareholders of Panevėžio statybos trestas AB elects the audit committee. The audit committee consists of three members one of them being independent. The term of office of the audit committee is one year. The continuous term of office of a committee member cannot exceed 12 years.

The duties of the audit committee are as follows:

1) to monitor the financial reporting process;

2) to monitor the effectiveness of the company's internal control, internal audit where applicable, and risk management systems;

  • 3) to monitor the carrying out of audit;
  • 4) to monitor the independence and objectivity of the auditor or audit firm.

The audit committee at Panevėžio statybos trestas AB consists of the following members:

Lina Ragelienė - Deputy Chief Accountant of Panevėžio statybos trestas AB. Holds no shares of the Company.

Regina Sukarevičienė – Economist of Panevėžio statybos trestas AB. Holds no shares of the Company.

Irena Kriaučiūnienė – Independent Auditor. Auditor of IDG auditoriai UAB. Holds no shares of the Company.

13. Information announced in public

Since the beginning of the year 2014 up to the day of this report presentation the Company announced the following information in public through the system of OMX Client News Service:

Title of announcement Category of
announcement
Language Date
Panevėžio statybos trestas AB Is under
Reorganisation
Notification on material event $Lt$ , $En$ 1 Aug. 2014
Panevėžio statybos trestas AB Will Reconstruct
Former Hospital in Vilnius Old Town
Notification on material event $Lt$ . En 16 July 2014
Panevėžio statybos trestas AB Will Build a New
Factory in FEZ Territory of Panevezys
Notification on material event $Lt$ , $En$ 8 July 2014
Panevėžio statybos trestas AB Will Build a New
Dormitory in Klaipeda
Notification on material event $Lt$ , $En$ 1 Juli 2014
Notification on the transactions in issuer's
securities concluded by the company manager
Notifications on transactions
concluded by managers of the
companies
$Lt$ , $En$ 27 June 2014
Notification on the transactions in issuer's
securities concluded by the company manager
Notifications on transactions
concluded by managers of the
companies
$Lt$ , $En$ 25 June 2014
Unaudited Performance Results of Panevėžio
statybos trestas AB Company and Group for the
First Quarter of 2014
Notification on material event Lt, En 30 May 2014
Annual Information Approved by Annual
General Shareholders Meeting of Panevėžio
statybos testas AB
Annual information $Lt$ , $En$ 30 April 2014
Resolutions of Annual General Meeting of
Shareholders
Notification on material event $Lt$ . En 30 April 2014
Resolutions of Annual General Meeting of
Shareholders
Notification on material event $Lt$ . $En$ 8 April 2014
Convening of the Annual General Meeting of
the Shareholders
Notification on material event Lt. $En$ 28 March
2014
Unaudited Performance Results of Panevežio
statybos trestas AB and Group for the Year
2013
Interim information $Lt$ . En 28 Feb. 2014
Investor's Calendar for 2014 Other information $Lt$ . En 15 Jan. 2014

The content of the above listed announcements may be found on the website of the Vilnius Stock Exchange

http://www.baltic.omxgroup.com/market/?currency=0&pg=details&instrument=LT0000101446&list=2 and on the Company website http://www.pst.lt

14. Information on compliance with the Governance Code

The Company complies with the procedure of company management set forth by the Law on Companies of the Republic of Lithuania. The Company partially complies with the Governance Code applicable to the companies that are on the list of the Vilnius Stock Exchange. In accordance with the Articles of Association of the Company, the bodies of the Company are the General Meeting of the Shareholders, the Board and the Managing Directors. No Supervisory Board is formed in the Company. The annual report of the Company will include the more detailed explanation of how the Company complies with the recommendations of the Governance Code.

15. Financial statements

Separate statement of financial position

In Litas

ASSETS 30 June 2014 31 Dec. 2013
Non-current assets 51 102 113 66 203 447
Intangible assets 163 451 130 408
Tangible non-current assets 16 163 426 16 044 567
Investment and amounts receivable in one
year 34 041 653 49 292 806
Deferred tax assets 733 583 735 666
Current assets 143 803 526 119 230 399
Inventories 3 994 425 2 541 914
Advance payments 4 0 24 2 24 3 907 464
Amounts receivable 63 121 799 41 678 743
Other current assets 47 973 344 22 909 853
Cash and cash equivalents 24 689 734 48 192 425
TOTAL ASSETS 194 905 639 185 433 846
EQUITY AND LIABILITIES 30 June 2014 31 Dec. 2013
Equity 137 391 527 132 604 938
Share capital 16 350 000 16 350 000
Reserves 7 231 101 7 5 1 7 1 4 0
Retained profit (loss) 113 810 426 108 737 798
Translation reserve
Minority share
Amounts payable and liabilities 57 514 112 52 828 908
Amounts payable in one year and long
term liabilities 2 455 131 2 3 3 9 4 7
Loans and borrowings 0 $\Omega$
Warranty provision 1 467 589 1 297 928
Deferred tax liabilities 987 542 1038019
Amounts payable in one year and short
term liabilities
55 058 981 50 492 961
Loans and borrowings
Trade payables 33 666 880 17 953 077
Prepayments received 11 071 605 24 530 030
Current tax payable 746 199 387 685
Other liabilities 9 574 297 7622169
TOTAL EQUITY AND LIABILITIES: 194 905 639 185 433 846

Consolidated statement of financial position

In Litas
ASSETS 30 June 2014 31 Dec. 2013
Non-current assets 48 948 854 47 834 935
Intangible assets 487939 489 792
Tangible non-current assets 24 335 245 23 783 810
Investment property 20 319 031 20 319 031
Other investment and amounts receivable
in one year
184 136 193 694
Other intangible assets 3 622 503 3 048 608
Current assets 193 943 600 184 588 792
Inventories 55 140 010 46 398 887
Advance payments 8 9 21 3 99 8746618
Amounts receivable 83 117 310 59 028 118
Other assets 16 027 682 11 725 373
Cash and cash equivalents 30 737 199 58 689 796
TOTAL ASSETS: 242 892 454 232 423 727
EQUITY AND LIABILITIES 30 June 2014 31 Dec. 2013
Equity 125 799 864 120 202 384
Share capital 16 350 000 16 350 000
Reserves 9 350 072 9 461 106
Retained profit (loss) 99 010 627 93 407 957
Translation reserve 1 089 165 983 321
Minority share 4 4 8 7 4 4 5 4 3 5 1 6 0 0
Amounts payable and liabilities 112 605 145 107 869 743
Amounts payable in one year and long
term liabilities
14 201 642 19 223 413
Loans and borrowings 9 310 990 13 590 812
Provisions 2 376 162 2 191 516
Deferred tax liabilities 2 183 116 2 348 801
Grants and subsidies 96 278 112 802
Other payable amounts 235 096 979 482
Amounts payable in one year and short
term liabilities 98 403 503 88 646 330
Loans and borrowings 19 459 760 14 755 613
Trade payables 47 309 738 30 323 167
Prepayments received 17 060 362 25 718 989
Current tax payable 999 742 524 412
Other liabilities 13 573 901 17 324 149
TOTAL EQUITY AND LIABILITIES: 242 892 454 232 423 727

Separate statement of comprehensive income

In Litas

ITEM 30 June
2014
30 June
2013
April
through
June 2014
April
through
June 2013
INCOME FROM SALE 99 999 227 112 045 320 59 799 370 66 694 441
COST OF SALE 90 646 739 106 027 603 54 799 422 61 868 583
GROSS PROFIT (LOSS) 9 352 488 6 017 717 4 999 948 4825858
OPERATING EXPENSES 5 416 365 7 538 154 2 778 944 4756794
Sale 198 035 169 540 102 979 104 382
General and administration 5 218 330 7 368 614 2 675 965 4 652 412
TYPICAL OPERATING PROFIT (LOSS) 3 936 123 $-1520437$ 2 2 2 1 0 0 4 69 064
OTHER ACTIVITIES 376 204 1 179 112 435 452 1 035 664
Income 849 888 1 904 911 613 314 1 463 155
Expenses 473 684 725 799 177862 427 491
FINANCIAL AND INVESTMENT
ACTIVITIES
1 228 931 $-692741$ 1 944 826 $-1340294$
Income 1 576 781 1 246 199 1 265 778 526 633
Expenses 347 850 1938940 $-679048$ 1 866 927
USUAL ACTIVITY PROFIT (LOSS) 5 541 258 $-1034066$ 4 601 282 $-235566$
WINDFALL PROFIT
LOSSES
PROFIT (LOSS) BEFORE TAXATION 5 5 4 1 2 5 8 $-1034066$ 4601 282 $-235566$
PROFIT TAX 743 424 85 261 538,277 $-414840$
NET PROFIT (LOSS) 4797834 $-1$ 119 327 4 063 005 179 274

Consolidated statement of comprehensive income

Litas
ITEM 30 June
2014
30 June
2013
April
through
June 2014
April
through
June 2013
SALE 139 069 826 147 618 251 78 270 240 83 374 036
COST OF SALE 122 548 221 137 081 503 70 449 532 76 420 144
GROSS PROFIT (LOSS) 16 521 605 10 536 748 7820708 6 953 892
OPERATING EXPENSES 9 608 120 11 485 902 4 893 761 6 182 197
Sale 765 288 515 656 339 391 285 462
General and administration 8 842 832 10,970,246 4 5 5 4 3 7 0 5 896 735
TYPICAL OPERATING PROFIT (LOSS) 6 9 13 4 85 $-949154$ 2 9 2 6 9 4 7 771 695
OTHER ACTIVITIES 709 423 1 0 7 3 5 8 3 418 483 990 744
Income 1,223 635 1870997 310 500 1 454 277
Expenses 514 212 797 414 $-107983$ 463 533
FINANCIAL AND INVESTMENT
ACTIVITIES
$-1670666$ $-3553555$ 3 196 218 -4 122 114
Income from other financial activities 92,507 230 994 54,748 $-516,943$
Other financial expenses 1763 173 3 784 549 $-3141470$ 3 605 171
USUAL ACTIVITY PROFIT (LOSS) 5 9 5 2 2 4 2 $-3429126$ 6 541 648 $-2359675$
WINDFALL PROFIT
LOSSES
PROFIT (LOSS) BEFORE TAXATION 5 9 5 2 2 4 2 $-3429126$ 6 541 648 -2 359 675
PROFIT TAX 359 547 -488 865 1 046 936 $-926342$
NET PROFIT (LOSS) 5 592 695 $-2940261$ 5 494 712 $-1$ 433 333
ATTRIBUTABLE TO SHAREHOLDERS 5 506 478 $-2335732$ 4 950 083 $-1062062$
ATTRIBUTABLE TO MINORITY
INTEREST
86 217 $-604529$ 544 629 $-371271$

Panevėžio statybos trestas AB Interim Financial Statement for Six Months of 2014

Separate statement of changes in equity

In Litas Authorized
capital
revaluation
FA
reserve
Legal
Deferred
result
Total
Increase (decrease) of authorized capital
Unrecognized profit (loss) for 2013
Balance as of 1 January 2013
Net profit (loss) for 2013
Dividend
16350000 5328370
$-135400$
635030 108 555 020
135400
$-1119327$
408750
-408750
131868420
$-1119327$
Increase (decrease) of authorized capital
Unrecognized net profit (loss) for 201-
Balance as of 31 December 2013
Balance as of 30 June 2013
Revaluation of fixed assets
Net profit (loss) for 2014
16350000
16350000
5192970
5882110
$-11245$
$-274794$
635030
635030
108737798
107162343
274794
4797834
130340343
132 604 938
$-11245$
4797834
Balance as of 30 June 2014 16350000 5596071 1635030 113810426 137 391 527

22

Panevėžio statybos trestas AB Interim Financial Statement for Six Months of 201

Consolidated statement of changes in equity

n Litas Authorized
capital
Revaluation
reserve
reserve
Legal
Influence of
change in
exchange
rate
Accumulated
profit
Losses per
company
parent
share
Minority
part
Total
Oecrease in revaluation reserve
salance as of 1 January 2013
Jet profit (loss) for 2013
16350000 055
097
5909
$-160($
2050013 200 429 91510925
160055
$-2335732$
116 020 464
2335732
4940669
$-604529$
120 961 133
$-2940261$
Jurrency rate change
Jividend
869210 408750 -408750
869210
$-12034$
224818
1 094 028
$-420784$
Reserves formed 16376 $-16376$
Salance as of 30 June 2013 16350000 042
5749
2066389 1 069 639 88 910 122 114 145 192 4548924 118 694 116
3alance as of 31 December 2013
becrease in revaluation reserve
16350000 7394717 2066389 983321 93 407 957 120 202 384 4351600 124553984
cevaluation of fixed assets
Jet profit (loss) for 2014
$-350789$
$-11245$
5857267
$-3.597$
$-11245$
5 506 478
$-3597$
86215 $-11245$
5 592 693
$-3.597$
nfluence of currency rate change
eserves formed
Jividends
251000 105846 $-251000$ 105846 49,628 155474
salance as of 30 June 2014 16350000 683
7032
2317389 1 089 1 67 99 010 627 125 799 866 4487443 130 287 309

Separate statement of cash flows

In Litas

January
through
June 2014
January
through
June 2013
Cash flow from operating activities
Net profit (loss) 4797834 -1 119 327
Depreciation and amortization costs 1 353 747 1 343 893
Profit (loss) from transfer of non-current assets $-29271$ $-141573$
Income tax expense 743 424 85 261
6 865 734 168 254
Change in inventories $-1452511$ 6799078
Change in amounts receivable $-21443056$ -3 639 737
Change in prepayments $-116760$ 2 699 525
Change in amounts receivable after one year 9 2 9 9 $-390461$
Change in other assets $-1022340$ 4 012 292
Change in trade payables 15 713 803 $-8150519$
Change in prepayments received $-13458425$ 4 4 8 6 4 1 8
Change in provisions and other liabilities 908 256 $-7185303$
-13 996 000 $-1200453$
Income tax paid $-451112$ $-249542$
Net cash from operating activities $-14447112$ $-1449995$
Cash flow from investing activities
Acquisition of long term assets (excl. investment) $-1618708$ $-526667$
Transfer of long term assets (excl. investment) 142 330 168 416
Acquisition of investment $-22210$
Loans issued $-18472544$ $-1138019$
Loans recovered 10 029 587 2 505 831
Dividends and interest received 949 837 589 506
Net cash used in investing activities -8 991 708 1599 067
Cash flow from financial activities
Dividends, share of profit paid $-6702$ $-398145$
Proceeds from loans and borrowings 10 861 0
Repayments from loans and borrowings $-10861$ $\boldsymbol{0}$
Payment of finance lease liabilities -478 918
Interest paid $-57169$ $-148373$
Net cash from (used in) financing activities $-63871$ $-1025436$
Increase (decrease) in net cash flow
Cash and its equivalent at the beginning of the
-23 502 691 $-876364$
period 48 192 425 17 892 250
Cash and its equivalent at the end of the period 24 689 734 17 015 886

Consolidated statement of cash flows

In Litas

30 June
2014
30 June
2013
Cash flow from operating activities
Net profit (loss) 5 592 695 $-2940261$
Elimination of other non-monetary items
Depreciation and amortization costs 1802138 1759080
Other non-monetary items $-1$ 144 128 $-1061915$
6 250 705 $-2243096$
Change in inventories $-8741123$ 14 628 158
Change in amounts receivable -24 089 192 $-7651101$
Change in prepayments $-174781$ 7 077 637
Change in other assets -4 272 799 6 700 137
Change in trade payables 16 986 571 $-9266673$
Change in prepayments received $-8658627$ $-2517864$
Change in provisions and other liabilities -3 757 643 -9 407 291
$-26456889$ -2 680 093
Elimination of results from financial and investing
activities 811 182 1 066 667
Net cash from operating activities $-25645707$ $-1613426$
Cash flow from investing activities
Acquisition of non-current assets (except
investments) $-2013510$ $-1055511$
Acquisition of long-term investments $-22210$ $-1853371$
Transfer of non-current assets (except investments) 802 072 320 436
Loans issued $\mathbf{0}$ $\theta$
Loans recovered 2 2 5 8 8 2 5 8
Dividends and interest received 83 329 153 604
Net cash used in investing activities $-1$ 148 061 $-2426584$
Cash flow from financial activities
Dividends and share of profit paid $-10299$ $-410,179$
Proceeds from loans and borrowings 1 802 472 3,101,992
Repayments from loans and borrowings $-1757571$ $\mathbf 0$
Payment of finance lease liabilities $-406115$ $-308,938$
Interest paid -787 316 -339 538
Net cash from (used in) financing activities $-1$ 158 829 2 043 337
Increase (decrease) in net cash flow -27 952 597 $-1996673$
Cash and cash equivalent in the beginning of the
period
58 689 796 23 574 500
Cash and cash equivalent at the end of the
period 30 737 199 21 577 827

EXPLANATORY NOTE

General information

Panevėžio statybos trestas AB (hereinafter "the Company") was established in 1957 and for a long time known as the North Lithuania Construction Trust (Siaures Lietuvos statybos trestas). In 1991 the Company was registered as a State Capital Company. On 30 October 1993 the State Capital Company was reorganized to a Public Limited Liability Company. Company code 147732969. VAT code LT477329610. Registration certificate No. 013732, issued on 27 September 2004 by the State Register Centre Panevėžys Branch.

The Company comprises the following branches: Gerbusta, Pastatu apdaila, Genranga and Klaipstata, These subsidiaries keep separate records, but their assets, liabilities and financial results are included when preparing financial accountability of the Company. The Company has its representative office in Cherepovets, a branch in Kaliningrad and permanent establishments in the United Kingdom of Great Britain and Northern Ireland, and the Kingdom of Sweden. The financial year of the Company is considered the calendar year. The period of commercial-economic activities of the Company is unlimited.

The main activity of the Company and its subsidiaries (hereinafter "the Group") is designing and construction of various buildings, structures, facilities, communications and other similar objects in Lithuania and abroad, real estate development.

Basis of interim financial statement preparation

The figures in the interim financial statement are presented in the national currency of Lithuania, Litas, which is also the Company's functional currency.

The same accounting principles were applicable to both $-$ the interim financial statement and to the annual financial statement.

The following currency rates were used when preparing the interim financial statement:

Currency 30 June 2014 31 Dec. 2013
1 EUR 3.4528 3.4528
100 RUB 7.5320 7.6727
10 PLN 8.3152 8.3218

Principles of consolidation

Subsidiary companies are the companies controlled by the parent company. Such control is defined as a capability to a company to have determinant effect on other company, manage and influence financial and economic activities to get benefit from that company. For the purposes of control assessment the total available number of shareholders' votes at the General Meeting of Shareholders is considered. The financial statements of subsidiary companies are included into the Consolidated Financial Statement from the day of control gain and are excluded from the day of control loss. During consolidation of financial statement the income and expenses, amounts receivable and payable and unrealized results of the Group are eliminated.

Investment in non-current assets

During the first half of the year 2014, the investments of the Group in acquisition of non-current assets amounted to 2 013 510 Litas: Panevėžio statybos trestas AB acquired non-current assets for 1 527 708 Litas. During the first half of year 2014 the costs related to depreciation and amortization of assets of the Group amounted to 1 802 138 Litas, including 1 353 747 Litas accounted for in the Financial Statement of Panevėžio statybos trestas AB.

Loans

As of 30 June 2014, the Group had loans amounting to 28 770 750 Litas, including 27 702 185 Litas as long-term and short-term credits of PST investicijos UAB Group.

Guarantees, sureties

As of 30 June 2014, the guarantees of the liabilities of Panevėžio statybos trestas AB Group by credit institutions amounted to 58 290 539 Litas, including 52 008 880 Litas for performance guarantees issued for Baltlitstroj OOO.

Transactions with associated parties

There were no significant transactions made with any associated parties.

$\overline{\mathcal{L}}$

Dividends

The Annual General Meeting of the Shareholders of Panevėžio statybos trestas AB that took place on 30 April 2014 took the decision to pay no dividends.

$\hat{\mathbf{v}}$

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