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Panevezio Statybos Trestas

Interim / Quarterly Report Aug 31, 2010

2244_ir_2010-08-31_dec8ba6e-2aca-4c53-846b-72384b289eaf.pdf

Interim / Quarterly Report

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Securities Commission of the Republic of Lithuania Konstitucijos Ave. 23, LT-08105 Vilnius

Vilniaus vertybinių popierių birža AB (Vilnius Stock Exchange) Konstitucijos Ave. 7, 15 Floor, LT-08105 Vilnius

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 2010 made in accordance with the International Financial Reporting Standards is true and shows the assets, liabilities, financial state, profit or loss of Panevėžio statybos trestas AB and the Company 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. sisent

Dalius Gesevičius Managing Director Panevėžio statybos trestas AB

Denver

Dalė Bernotaitienė Finance Director Panevėžio statybos trestas AB

AB "Panevėžio statybos trestas" Imonės kodas 147732969 PVM mokėtojo kodas LT477329610 VJ Registrų centro Panevėžio filialas Registravimo pažymėjimo Nr. 013732 http://www.pst.lt

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

PANEVĖŽIO STATYBOS TRESTAS AB

Consolidated Interim Financial Statement and Consolidated Interim Report for Six Months of 2010

30 August 2010 Panevėžys

1. Reporting period

The consolidated annual report has been prepared for six months of the year 2010 that expired on 30 June 2010.

$2.$ Main data about the issuer

Public limited liability company Panevėžio statybos
trestas
16,350,000 Litas
P. Puzino Str. 1, LT-35173 Panevėžys, Lithuania
$(+37045)$ 505 503
$(+37045)$ 505 520
[email protected]
Public limited liability company
30 October 1993, Panevėžys City Department
AB 9376
147732969
LT477329610
State Enterprise Centre of Registers
www.pst.lt

3. Character of the main activity of the issuer

The main area of activity of the Company and subsidiaries (the Group) is designing and construction of buildings, constructions, installations and communications of various purposes both in and outside Lithuania, real estate development. In addition to the mentioned activities, the Company rents premises and machinery, resells utilities and communication services.

4. Information on the Company Group

As of 30 June 2010 the Company Group of Panevėžio statybos trestas AB consists of the following companies:

Subsidiaries Type of activities Share
controlled
(per cent)
Domicile address
Skydmedis UAB Production of wood
constructions
100 Pramonės Str. 5,
Panevėžys
Tel.: +370 45 583341
Metalo meistrai UAB Production of metal
constructions
100 Tinklu Str. 7,
Panevėžys
Vekada UAB Electrical installation
activities
96 Marijonų Str. 36,
Panevėžys
Tel.: +370 45 461311
Vilniaus papėdė TŪB Construction works 69 Švitrigailos Str. 8,
Vilnius
Tel.: +370 5 2609405
Alinita UAB Air conditioning equipment 100 Dubysos Str. 31,
Klaipėda
Tel.: +370 46 340363
PS Trests SIA Construction 100 Vietalvas Str. 5, Riga
OOO Baltlitstroij Construction 100 Sovetskij Ave. 43,
Kaliningrad
Tel.: 0074012350435
PST Investicijos UAB Real estate development 67 Lvovo Str.25,
Vilnius
Tel.: +370 5 2102130
Subsidiaries of PST investicijos UAB:
Ateities projektai UAB Real estate development and
sales
100 Lvovo Str. 25,
Vilnius
Sakališkės UAB Real estate development and
sales
100 Lvovo Str. 25,
Vilnius
Kauno erdvė UAB Real estate development and
sales
100 Lvovo Str. 25,
Vilnius
Verkių projektas UAB Real estate development and
sales
100 Lvovo Str. 25,
Vilnius
OOO ISK Baltevromarket Construction investment
company
100 Cherniachovsk Str. 6
Kaliningrad

5. Contracts with intermediaries in security public circulation

On 7 February 2006 the contract No.3792 was signed with the public limited liability company NORD/LB bankas located at Basanavičiaus Str. 26 in Vilnius. This company was authorized to perform accounting of securities issued and transferred to it, and management of personal security accounts.

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

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
(pcs.)
Par value
(Litas)
Total par value
(Litas)
Emission
code
Ordinary registered shares (ORS) 16,350,000 16,350,000 101446

Variation in the price of the company shares at the Stock Exchange for the first half of 2010

Last price Highest price Lowest price Last price
31 Dec. 2009 for the first half for the first half 30 June 2010
3.79 4.8 3.67 3.77

7. Authorized capital of the company and its structure

As of 30 June 2010, the authorized capital of the Company was 16,350,000 Litas, it was 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 2010 the total number of the shareholders who under the ownership right held or controlled more than 5 percents of the authorized capital of the Company was 1995:

Name, surname 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
Skandinaviska Enskilda Banken
clients
Sergels Torg 2, Stockholm, Sweden
502032-9091
1 294 157 7.92 7.92
Bank of New York as custodian or
trustee for ING B
One Wall Street, New York.
NY 10286, USA
GSP181305
1 102 000 6.74 6.74

The Company has not purchased its own shares, any of its subsidiaries has not purchased any shares of the Company and no other person who would act in his/her own name but in the favor 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 six months of this year the PST Group was on the income of 84.5 mln. Litas, that is by 21 percents less than for the same period last year and made net profit in the amount of 18.7 mln. Litas. The company was on the income of 72.8 mln. Litas and made net profit amounting 7.8 mln. Litas.

Group Company
I half of 2010 I half of 2009 I half of 2010 I half of 2009
Income 84518 107621 72803 94797
Net profit 18711 $-2388$ 7792 2142
Net profit margin (percents) 22.14 $-2.2$ 10.7 2.3
Profit per share (Litas) 0.94 $-0.05$ 0.48 0.13
Profit before taxes, interest,
depreciation and amortization
EBITDA
24430 5403 11834 7613
Return on equity (percents) (ROE) 16.26 $-2.15$ 5.93 1.75
Return on assets or asset profitability
(ROA)
9.52 $-0.98$ 4.21 1.10
Return on investments (ROI) 13.26 $-1.77$ 5.68 1.63
Current liquidity ratio 2.99 1.88 2.50 2.14
Current liquidity ratio 2.28 1.32 2.41 2.07
General liquidity ratio 1.46 0.85 2.45 1.68
Book value per share 7.20 6.99 8.04 7.47
Share price / earnings ratio (P/E) 4.0 $-42.7$ 7.9 17.2
The performance results of Panevėžio statybos trestas AB Group and the Company are as
follows (in thousands Lt):

Income and net profit variation for the Company:

Income and net profit variation for the Group:

Information on segments

No segment reporting is provided in the financial statements as the Company and Group have one reportable operating segment that would account for 90% or more of the Company and Group revenue and assets.

Geographical distribution of income:

Group Company
(thousands Lt) I half of
2010
I half of
2009
I half of
2008
I half of
2010
I half of
2009
I half of
2008
Lithuania 79,30 104,55 243,47 68,77 91,86 238,13
Russian Federation 4.04 2,93 14,01 4.04 2,93 14,01
Germany, Ireland, Denmark 0,16 0,00 0,22
Scandinavian countries 1.02 0,14 0,21

9. Employees

During the first half of 2010, the average number of employees in Panevėžio statybos trestas AB Group was 1042, whereas in the Company - 861 employees.

Average number of I half of 2010 I half of 2009
employees Group Company Group Company
Specialists 293 222 308 238
Workers 749 639 920 800
Groups of employees Payroll
number
Higher
university
level
education
Higher non-
university
education
Community
college
education
Secondary
education
Incomplete
secondary
education
Management 30 25 0 $\overline{4}$
Specialists 276 202 8 50 15
Workers 824 18 4 163 508 131

Employee grouping by education in Panevėžio statybos trestas AB Group:

I half of 2010 I half of 2009
Average salary/wage Group Company Group Company
Management 6481 9527 9065 18125
Specialists 3266 3511 4755 5215
Workers 1619 1666 1387 1374

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

10. 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 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.

11. 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 POSITION NUMBER
OF SHARES
CAPITAL,% VOTES, %
TERTIUS UAB 704,638 80 80
PANEVĖŽIO KELIAI AB Member of the Board 531,675 28.47 28.47
LAUKTUVĖS JUMS UAB Member of the Board 11,069 50.15 50.15
POKŠTAS UAB 261 50 50
KLOVAINIŲ SKALDA AB Member of the Board 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 18,027 49.04 49.04
SPECIALIZUOTA
KOMPLEKTAVIMO 21,490 9,29 9,29
VALDYBA AB
IGNALINOS STATYBA UAB Member of the Board 91,351 37.93 37.93
TAMSUMA UAB Chairman of the Board 1,467 33.34 33.34
NAUJASIS UŽUPIS UAB Chairman of the Board
PANEVĖŽYS UAB Member of the Board 157,191 49.98 49.98
PANEVĖŽIO STATYBOS Chairman of the Board $\Omega$ $\theta$ 0
TRESTAS AB
PANODEN UAB Member of the Board
PST INVESTICIJOS UAB Member of the Board 16,407 4.4 4.4
KIRTIMŲ AUTOTRANSPORTAS Member of the Board
AB
CONSTRUCTUS UAB Member of the Board 1,669 4.5 4.5
CONVESTUS UAB Vice-president, 50,000 50 50
Chairman of the Board
UPES SLENIS UAB 810 18 18
1969 bonds
ALPROKA UAB Chairman of the Board

Term of office: October 2006 through October 2010

No previous convictions.

GVIDAS DROBUŽAS - 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 POSITION NUMBER OF
SHARES
CAPITAL
$\frac{0}{0}$
VOTES
$\frac{0}{0}$
PANEVĖŽIO KELIAI AB Chairman of the Board 529,861 28.33 28.33
LAUKTUVĖS JUMS UAB Member of the Board 11,001 49.85 49.85
POKŠTAS UAB Director 261 50.0 50.0
KLOVAINIŲ SKALDA AB Member of the Board 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 18,028 49.04 49.04
IGNALINOS STATYBA UAB Member of the Board 91,351 37.93 37.93
TAMSUMA UAB Member of the Board 1,467 33.34 33.34
PANEVĖŽIO STATYBOS Member of the Board
TRESTAS AB
PANEVĖŽYS UAB Member of the Board 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
CONSTRUCTUS UAB Chairman of the Board 1,669 4.5 4.5
NAUJASIS UŽUPIS UAB Member of the Board
VILNIAUS VAIZDAS UAB Chairman of the Board 50 50 50
CONVESTUS UAB President, 50,000 50 50
Member of the Board
Shares of UPES SLENIS UAB 810 18 18
1969 bonds of
Upes slenis UAB
ALPROKA UAB Member of the Board

Term of office: October 2006 through October 2010

No previous convictions

IRMA ABRAMAVIČIENĖ – the Member of the Board. Membership in the capital of the company below:

COMPANY NAME
---------
CAPACITY NUMBER
OF SHARES
CAPITAL
$\frac{9}{6}$
VOTES
$\%$
CONVESTUS UAB Internal auditor -

Term of office: April 2008 through October 2010

No previous convictions

VILIUS GRAŽYS – the Member of the Board. Participates in the activities of the following companies:

COMPANY NAME POSITION NUMBER
OF SHARES
CAPITAL
$\frac{0}{0}$
VOTES
$\frac{6}{6}$
AKVALDA UAB 500 33.33 33.33
EMULTEKA UAB
BASS UAB 40 40 40
PANEVEZIO STATYBOS Member of the
TRESTAS AB Board
PANEVEZIO KELIAI AB Member of the 101735 5.45 5.45
Board

Term of office: October 2006 through October 2010

No previous convictions.

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

COMPANY NAME POSITION NUMBER OF
SHARES
CAPITAL
$\frac{0}{0}$
VOTES
$\frac{0}{0}$
DVARČIONIU KERAMIKA AB Share holder 356
AB "PANEVĖŽIO KELIAI" Member of the
Board

Terms of office: October 2006 through October 2010

No previous convictions.

Administration:

DALIUS GESEVIČIUS - Head of the Company Administration, Managing Director. Holds 15 shares of the company. University education (1984, VISI), construction engineer. No previous convictions.

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

12. Information announced in public

Since the beginning of the year 2010 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
Financial statement for the first quarter
of 2010 of Panevėžio statybos trestas
AB
Interim information Lt, En 17 May
2010
Performance Results for the first quarter
of 2010
Notification on material event Lt, En 17 May
2010
Resolutions of the Reconvened General
Meeting of the Shareholders
Notification on material event Lt, En 5 May
2010
Non-competitive formal offer Notification on material event Lt, En 5 May
2010
Reconvening of the Annual General
Meeting of the Shareholders
Notification on material event Lt, En 20 April
2010
The General Meeting of PST AB did not
take place
Notification on material event $Lt$ , En 19 April
2010
Audited company and consolidated
financial statement for 2009
Annual information Lt, En 14 April
2010
Convening of the Annual General
Meeting of the Shareholders
Notification on material event Lt, En 29 March
2010
Preliminary Results of PST Group for
the Year 2009
Interim information Lt, En 26 Feb.
2010

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

13. 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

$\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\$

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.

14. Financial statements

BALANCE SHEET

In Litas Company
ASSETS 30 June 2010 31 Dec. 2009
Non-current assets 65275623 73650975
Intangible assets 42054 80009
Tangible non-current assets 26229495 28832083
Investment and amounts receivable in
one year
38792532 44393475
Deferred tax assets 211542 345408
Current assets 119726751 110829276
Inventories 4213648 4418046
Advance payments 1400785 4198396
Amounts receivable 55440245 47623506
Other current assets 20338005 654644
Cash and cash equivalents 38334068 53934684
TOTAL ASSETS 185002374 184480251
In Litas Company
EQUITY AND LIABILITIES 30 June 2010 31 Dec. 2009
Equity 131379104 124731781
Share capital 16350000 16350000
Reserves 11000038 11350624
Retained profit (loss) 104029066 97031157
Translation reserve
Minority share
Amounts payable and liabilities 53623270 59748470
Amounts payable in one year and long
term liabilities 5706312 7328058
Loans and borrowings 3140946 4323901
Warranty provision 903437 1289640
Deferred tax liabilities 1661929 1714517
Amounts payable in one year and short
term liabilities 47916958 52420412
Loans and borrowings 2423601 2760113
Trade payables 27422500 17967020
Prepayments received 6771611 17798652
Current tax payable 104739 126597
Other liabilities 11194507 13768030
TOTAL EQUITY AND LIABILITIES: 185002374 184480251

BALANCE SHEET

In Litas Group
ASSETS 30 06 2010 31 Dec. 2009
Non-current assets 30958360 40244322
Intangible assets 176437 234725
Tangible non-current assets 29560008 32412105
Other investment and amounts
receivable in one year 110919 6247855
Other intangible assets 1110996 1349637
Current assets 165647806 172830335
Inventories 39305137 53811431
Advance payments 2494312 6189074
Amounts receivable 65246277 54467327
Other assets 17137000 2222936
Cash and cash equivalents 41465080 56139567
TOTAL ASSETS: 196606166 213074657
In Litas Group
EQUITY AND LIABILITIES 30 06 2010 31 Dec. 2009
Equity 115088607 101114316
Share capital 16350000 16350000
Reserves 12076571 12465122
Retained profit (loss) 86122207 71488724
Translation reserve 539829 810470
Minority share 2573477 $-670604$
Amounts payable and liabilities 78944082 112630945
Amounts payable in one year and long
term liabilities
23471066 11575314
Loans and borrowings 19280727 6988316
Provisions 1935875 2248495
Deferred tax liabilities 1796597 1849184
Grants and subsidies 56738 60563
Other payable amounts 401129 428756
Amounts payable in one year and short
term liabilities 55473016 101055631
Loans and borrowings 2669112 40697653
Trade payables 30971243 22254571
Prepayments received 7314283 18201667
Current tax payable 120098 127923
Other liabilities 14398280 19773817
TOTAL EQUITY AND LIABILITIES: 196606166 213074657

PROFIT (LOSS) STATEMENT

In Litas Company
ITEM Jan.
through
June 2010
Jan.
through
June 2009
April
through
June 2010
April
through
June 2009
SALE 72803369 94796756 52570759 50338664
COST OF SALE 62158308 80384195 43949228 42505838
GROSS PROFIT (LOSS) 10645061 14412561 8621531 7832826
OPERATING EXPENSES 3599819 11328419 1092023 7093705
Sale 134832 212175 77449 94281
Recovery of doubtful debts -3561827 $-67460$ -3039633 $-26590$
General and administration 7026814 11183704 4054207 7026014
TYPICAL OPERATING PROFIT (LOSS) 7045242 3084142 7529508 739121
OTHER ACTIVITIES $-25399$ -95982 17735 $-85552$
Income 330808 181184 177783 77904
Expenses 356207 277166 160048 163456
FINANCIAL AND INVESTMENT
ACTIVITIES
1615273 940832 484537 1118782
Income 1879476 1335664 591665 963655
Expenses 264203 394832 107128 $-155127$
USUAL ACTIVITY PROFIT (LOSS) 8635116 3928992 8031780 1772351
WINDFALL PROFIT $\mathbf 0$ $\mathbf{0}$ $\mathbf{0}$ $\mathbf{0}$
LOSSES $\Omega$ $\mathbf{0}$ $\Omega$ 0
PROFIT (LOSS) BEFORE TAXATION 8635116 3928992 8031780 1772351
PROFIT TAX 843293 1787474 712712 1245662
NET PROFIT (LOSS) 7791823 2141518 7319068 526689

PROFIT (LOSS) STATEMENT

$\mathcal{L}^3$

In Litas Group
ITEM Jan.
through
June 2010
Jan.
through
June 2009
April
through
June 2010
April
through
June 2009
SALE 84517797 107621299 58368146 57150481
COST OF SALE 70656301 92341647 47884650 49689447
GROSS PROFIT (LOSS) 13861496 15279652 10483496 7461034
OPERATING EXPENSES 6706186 14262597 2704445 8709632
Sale 227003 256748 151950 128514
Recovery of doubtful debts -3561827 $-67460$ -3039633 $-26590$
General and administration 10041010 14073309 5592128 8607708
TYPICAL OPERATING PROFIT (LOSS) 7155310 1017055 7779051 $-1248598$
OTHER ACTIVITIES $-278434$ $-155500$ $-107905$ $-68811$
Income 191819 187094 92522 113507
Expenses 470253 342594 200427 182318
FINANCIAL AND INVESTMENT
ACTIVITIES
12966426 $-1661067$ 11358159 989481
Income from other financial activities 4133847 1404761 1471507 987440
Profit due to loss of company control 10005556 10005556
Other financial expenses 1172977 3065828 118904 $-2041$
USUAL ACTIVITY PROFIT (LOSS) 19843302 -799512 19029305 $-327928$
WINDFALL PROFIT
LOSSES
PROFIT (LOSS) BEFORE TAXATION 19843302 -799512 19029305 $-327928$
PROFIT TAX 1132836 1588222 742114 1272885
NET PROFIT (LOSS) 18710466 -2387734 18287191 $-1600813$
ATTRIBUTABLE TO SHAREHOLDERS 15389429 $-862187$ 14783326 -967900
ATTRIBUTABLE TO MINORITY
INTEREST
3321037 $-1525547$ 3503865 $-632913$

CASH FLOW STATEMENT

Company
Jan. through
June 2010
Jan. through
June 2009
Cash flow from operating activities
Net profit (loss) 7.791.823 2.141.518
Depreciation and amortization costs 2.976.048 3.313.434
Profit (loss) from transfer of non-current assets $-116.192$ 3.363
Income tax expense 843.293 1.340.755
11.494.972 6.799.070
Change in inventories 204.398 4.141.453
Change in amounts receivable $-7.816.739$ 35.532.154
Change in prepayments 2.797.611 $-174.497$
Change in amounts receivable after one year $-92.475$ $-22.407$
Change in other assets $-8.289.335$ $-304.948$
Change in trade payables 9.455.480 -28.994.321
Change in prepayments received $-11.027.041$ $-843.060$
Change in provisions and other liabilities $-2.543.638$ $-8.023.690$
$-5.816.767$ 8.109.754
Income tax paid -998.152 $-275.771$
Net cash from operating activities $-6.814.919$ 7.833.983
Cash flow from investing activities
Acquisition of long term assets (excl.
investment)
Transfer of long term assets (excl. investment)
$-403.093$ $-371.303$
189.280 44.100
Acquisition of investments
Loans issued
Loans recovered
$-5.318.070$ $-2.389.957$
137.544
Dividends and interest received 738.280 868.726
Net cash used in investing activities $-4.793.603$ $-1.710.890$
Cash flow from financial activities
Dividends, tantiemes paid
Proceeds from loans and borrowings
Repayments from loans and borrowings
$-2.249.465$ $-2.254.147$
Payment of finance lease liabilities $-1.519.467$ $-1.963.379$
Interest paid $-223.162$ $-370.559$
Net cash from (used in) financing activities $-3.992.094$ -4.588.085
$-15.600.616$ 1.535.008
Increase (decrease) in net cash flow
Cash and its equivalent at the beginning of the
period 53.934.684 54.770.637
Cash and its equivalent at the end of the
period
38.334.068 56.305.645

CASH FLOW STATEMENT

Group
Jan.
through
June 2010
Jan.
through
June 2009
Cash flow from operating activities
Net profit (loss) 18.710.466 $-2.387.734$
Elimination of other non-monetary items
Depreciation and amortization costs 3.448.773 3.849.953
Other non-monetary items $-32.172$ 278.983
22.127.067 1.741.202
Change in inventories $-3.299.408$ 3.708.894
Change in amounts receivable $-10.778.950$ 33.120.472
Change in prepayments 3.694.762 320.453
Change in other assets $-8.813.691$ 2.735.520
Change in trade payables 8.858.617 $-27.283.700$
Change in prepayments received -10.887.384 $-1.178.739$
Change in provisions and other liabilities $-750.737$ $-7.127.595$
150.276 6.036.507
Elimination of results from financial and investing
activities $-10.056.701$ 2.438.653
Net cash from operating activities $-9.906.425$ 8.475.160
Cash flow from investing activities
Acquisition of non-current assets (except
investments) -435.608 $-454.521$
Transfer of non-current assets (except investments) 43.994 113.405
Loans issued $-2.396.817$
Loans recovered 187.546
Dividends and interest received 696.858 922.136
Net cash used in investing activities 305.244 $-1.628.251$
Cash flow from financial activities
Cash paid by minority interest
Dividends and tantjemes paid $-2.249.465$ $-2.254.147$
Proceeds from loans and borrowings 2.969.081
Repayments from loans and borrowings 11.966
Payment of finance lease liabilities $-1.687.269$ $-2.193.834$
Interest paid $-1.136.572$ $-2.352.595$
Net cash from (used in) financing activities $-5.073.306$ $-3.819.529$
Increase (decrease) in net cash flow $-14.674.487$ 3.027.380
Cash and cash equivalent in the beginning of the
period
56.139.567 57.143.406
Cash and cash equivalent at the end of the
period 41.465.080 60.170.786
j
l
ì
Î

21

STATEMENT OF CHANGES IN EQUITY

Company

In Litas Authorized
capital
premium
Share
revaluation
FA
Financial
reserve
reserve
Legal
reserves
Other
Deferred
result
Total
Balance as of 31 December 2008 16.350.000 9.705.028 1.635.030 93.372.055 121.062.113
Deferred tax related liability
Revaluation of fixed assets
$-350.586$ 350.586
Unrecognized profit (loss) for 2009
Net profit (loss) for 2009
2.141.518 2.141.518
Increase (decrease) of authorized capital
Dividend
$-1.144.499$ $\bullet$
$-1.144.499$
Balance as of 30 June 2009 16.350.000 9.354.442 1.635.030 94.719.660 122.059.132
Balance as of 31 December 2009 16,350.000 9.715.594 1.635.030 97.031.157 124.731.781
Revaluation of fixed assets
Related postponed tax liability
Deferred profit tax related to reappraisal
ofFA
Unrecognized net profit (loss) for 2009 $-350.586$ 350.586
Net profit (loss) for 2009 7.791.823 7.791.823
Dividend $-1.144.500$ $-1.144.500$
Reserves formed
Reserves used
Increase (decrease) of authorized capital
Balance as of 30 June 2010 16.350.000 $\bullet$ 9.365.008 0 1.635.030 $\bullet$ 104.029.066 131.379.104
Group
In Litas Authorized
capital
Share
bonus
Revaluation
reserve
reserve
Legal
Influence of
change in
exchange
rate
Accumulated
profit
Losses per
company
parent
share
Minority
part
Total
Decrease in revaluation reserve
Balance as of 1 January 2009
Net profit (loss) for 2009
Legal reserves formed
Currency rate change
Dividend
16.350.000 10.452.776
$-388.784$
115.132
2.003.361
962.905
681.774
$-1.144.500$
$-115.132$
388.784
$-862.187$
82.844.071
962.905
112.331.982
$-1.144.500$
$-862.187$
4.545.502
$-1.758$
$-1.524.056$
962.905
$\circ$
$-1.144.500$
$\circ$
$-1.758$
116.877.484
$-2.386.243$
Balance as of 30 June 2009
Balance as of 31 December
16.350.000 $\bullet$ 10.063.992 2.118.493 1.644.679 81.111.036 111.288.200 3.019.688 114.307.888
2009 16,350.000 ۰ 10.445.141 2.019.981 810.470 71.488.724 101.114.316 $-670.604$ 100.443.712
Decrease in revaluation reserve -388.782 388.785 Σ 3
Deferred tax liability 0
Net profit (loss) for 2010 15.389.429 15.389.429 3.305.187 18.694.616
Dividend $-1.144.500$ $-1.144.500$ $-1.144.500$
Influence of currency rate change $-270.641$ $-270.641$ $-61.106$ $-331.747$
Company transfer
Reserves formed
231 $-231$ $\circ$
$\circ$
Balance as of 30 June 2010 16.350.000 0 10.056.359 2.020.212 539.829 86.122.207 115.088.607 2.573.477 117.662.084

EXPLANATORY NOTE

General information

Panevėžio statybos trestas AB (hereinafter "the Company") was established in 1957 and for a long tome was known as Šiaurės 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 Nr. 013732, issued on 27 September 2004 by the Panevėžys Branch of State Enterprise Centre of Registers.

On January through June 2010 the Company had the following branches: Gerbusta, Pastaty apdaila, Genranga and Klaipstata. These branches have accounting independent of the parent company but their assets, liabilities and financial results are included in the financial statement of the Company. The Company has its representative office in Cherepovets, and a branch office in Kaliningrad. The financial year of the Company is the calendar year. The anticipated period of commercial-economic activities is unlimited.

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 2010 31 Dec. 2009 30 June 2009
1 EUR 3.4528 3.4528 3.4528
10 RUB 0.90483 0.79465 0.78771

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. As in June 2010 the Group lost control of Gelužės projektai UAB and Smiltvnu kalvos UAB, the financial statements of these companies for the first quarter of the year 2010 have not been consolidated.

During consolidation of financial statement the income and expenses, amounts receivable and payable and unrealized results of the Company Group are eliminated.

Investments in non-current assets

In January through June 2010 the investments of the Group in acquisition of non-current assets amounted to 435,608 Litas: Panevėžio statybos trestas AB acquired non-current assets for 403,091 Litas. The costs related to depreciation and amortization of assets of the Group amounted to 3,448,773 Litas, including 2, 976,048 Litas accounted for in the Financial Statement of Panevėžio statybos trestas AB.

On 22 April 2010 as per decision of the Annual General Meeting of Shareholders of PST investicijos UAB the authorized capital of the company was increased by 12,136,600 Litas (by additional issue of 121.366 pieces of ordinary registered shares) and registered at the Register of Legal Persons on 12 August 2010.

On 28 April 2010 the Share Purchase Agreement was signed between Panevėžio statybos trestas AB and PST investicijos UAB based on which Panevėžio statybos trestas AB acquired 88,597 pieces of ordinary registered shares for the amount of 8,859,700 Litas by paying, settling amounts receivable from PST investicijos UAB paid to DnB NORD bankas AB based on the Surety Agreement.

Loans

As of 30 June 2010 the long-term loans of the Company Group of PST investicijos UAB amounted to 15,722,821 Litas including bank credits totaling 13,526,734 Litas. For using credits SEB AB is paid the interest rate 1 month VILIBOR $+$ 1.1%, for other loans the interest rate is 3 months VILIBOR and the interest margin is 1.9%.

Guarantees, sureties

As of 30 June 2010 the guarantees of the liabilities of Panevežio statybos trestas AB by credit institutions amounted to 21,080,548 Litas, including 17,335,146 Litas for the Environmental Project Management Agency of the Ministry of Environment of the Republic of Lithuania.

Transactions with associated parties

As per resolution adopted by the Board of Panevėžio statybos trestas AB dated 20 July 2009, Panevėžio keliai AB had been given a loan amounting 6.2 mln. Litas that was accounted for in currents assets in the Financial Statement dated 30 June 2010.

Dividends

The Annual General Meeting of the Shareholders of Panevėžio statybos trestas AB that took place on 5 May 2010 made the decision to pay dividends in the amount of 1,144,500 Litas (0.07 Litas per share) and bonuses in the amount of 1,144,500 Litas.

Bonuses were paid during the first half of the year. Dividends are paid by DnB NORD bank in accordance with the contract. As of 30 June 2010 97 percents of dividends have been paid.

Significant changes in the interim financial statement during the reporting period

During the first half of 2010 the Group made the net profit amounting to 18.7 mln. Litas, whereas it suffered the loss of 2.3 mln. Litas in the first quarter of 2009. The profit in the amount of 10 mln. Litas was made due to control loss of the companies of PST investicijos UAB: Gelužės projektai UAB and Smiltynų kalvos UAB. (In June 2010 Gelužės projektai UAB was sold and bankruptcy proceedings were initiated to Smiltynų kalvos UAB based on the resolution of Vilnius Regional Court). After control of Gelužės projektai UAB and Smiltynų kalvos UAB had been lost, the loans payable to credit institutions decreased by 24.1 mln. Litas and contracts in progress decreased by 14.6 mln. Litas in the Financial Statements of the Group.

The result of 3.6 mln. Litas was improved by decrease in operating expenses after receivable doubtful debts evaluated in 2009 had been recovered.

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