Siguldas CMAS

Interim / Quarterly Report • Aug 25, 2022

Joint Stock Company ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’ Unaudited INTERIM REPORT for the First Six Months of 2022 JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’ Interim Report for the First Six Months of 2022 Index of Contents 2 Page Information on the Company 3 Management Report 4 Profit or Loss Account 5 Balance sheet 6 Cash flow statement 8 Statement on changes in shareholders’ equity 9 Notes to the Financial Statements 10 Report on Management Liability 24 JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’ Interim Report for the First Six Months of 2022 Information on the Company 3 Company’s name SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA Company’s legal status Joint stock company Registration number, place and date 40003013295, Riga, 26 July 1991 Registration in the Commercial Register on 19 June 2004 Legal address ‘Kalnabeites 8’, Sigulda, Sigulda municipality, LV-2150 Shareholders holding more than 5% of the total number of voting shares ‘Siguldas mākslīgās apsēklošanas stacija’ Ltd. (49.92%), registration No. 40003311954 SCI AG (5.95%) Bartholomäus-Arnoldi-Str. 82, DE-61250 Usingen, Germany Oļegs Radčenko (5.19%) Members of the Management Board Nils Ivars Feodorovs, chairman of the Management Board Sarmīte Arcimoviča, member of the Management Board Valda Mālniece, member of the Management Board Members of the Supervisory Board Inita Bedrīte, chairwoman of the Supervisory Board Maija Beča, deputy chairwoman of the Supervisory Board Baiba Mecauce, member of the Supervisory Board Guntis Mecaucis, member of the Supervisory Board Jānis Tūtāns, member of the Supervisory Board till 22.04.2022 Reporting period 01.01.2022 – 30.06.2022 Previous reporting period 01.01.2021 – 30.06.2021 Auditors Olga Kuzmiča Sworn Auditor Certificate No. 207 ‘Orients Audit & Finance’ Ltd. Gunāra Astras street 8B Riga, LV-1082, Latvia Sworn Auditors’ Commercial Company’s license No. 28 JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’ Interim Report for the First Six Months of 2022 Management Report 4 JSC ‘Siguldas ciltslietu un mākslīgās apsēklošanas stacija’ (hereinafter referred to as the Company) is one of the largest high-quality breeding bull semen producers and suppliers in Latvia. The second largest field of the Company’s basic economic activities is the milk testing services. The Company also provides other breeding related services – consultations on issues of cattle breeding, feeding and keeping, evaluation of cow exterior, artificial insemination of cows, initial processing of the supervisory data. The proportion of the revenue from the Company’s basic economic activities, if compared to the first six months of 2021, had not changed substantially − the revenue from the sales of the bull semen comprised 58.5 % of the net turnover, whereas the milk laboratory services and processing of supervisory data services, taken together, accounted for 30.2 % of the net turnover. Company's net turnover in the first six months of 2022 was 742.4 thousand euros, which is by 12.2 % higher than in the first six months of 2021, whereas Company's profit before enterprise income tax was 106.9 thousand euros – by 16.7 % or 15.3 thousand euros higher compared to the corresponding period in 2021. In 2022 a number of restrictive measures related to the war in Ukraine have entered into force in the Republic of Latvia and other countries, which is reducing the country's economic development. It is not to be foreseen how the situation will develop in the future, and therefore there is uncertainty about economic development. The Company's management constantly evaluates the situation. At present, the Company's operations have not been affected by the restrictions, nor has there been any decrease in cash flow. The Company's management believes that the introduced restrictions will not significantly affect the Company's operations. The outbreak of COVID-19 will not have a substantial impact on the Company's operations, financial situation and economic performance. In the first six months of 2022 there are no another major events that have affected the financial statement, as well as no significant risks that the company might be confronted with and which could have an impact on its financial position and financial performance. By increasing the operational efficiency of its business, the Company will continue to work on the expansion of its marketed product and service volume. Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece Chairman of the Management Board Member of the Management Board Member of the Management Board, Manager of the Financial and Accounting department 24 August 2022 JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’ Interim Report for the First Six Months of 2022 Profit or loss account 5 Note 30.06.2022 EUR 30.06.2021 EUR Net sales 3 742 392 661 608 a) from agricultural activities 742 392 661 608 Changes in stock of ready-made goods and unfinished products 4 45 084 21 248 Other operating income 5 28 838 23 181 Costs of materials: (377 799) (312 032) a) raw materials and auxiliary costs of materials (323 455) (260 247) b) other external costs (54 344) (51 785) Personnel costs: 6 (269 321) (237 389) a) salaries for work (209 790) (185 691) b) state social insurance compulsory contributions (49 067) (41 414) c) other social insurance costs (10 464) (10 284) Depreciation adjustments: (23 289) (29 313) a) depreciation adjustments of fixed and intangible assets (23 288) (29 285) b) depreciation adjustments of current assets which the company considers to be above the normal write-off amounts (1) (28) Other operating costs 7 (38 960) (35 631) Profit or loss before enterprise income tax 106 945 91 672 Enterprise income tax for the reporting year (134) (3) Profit or loss after enterprise income tax calculation 106 811 91 669 The profit or loss for the year 106 811 91 669 Earnings per 1 share (EPS) 17 0.253 0.217 Notes on pages 10 to 23 form an integral part of these financial statements. Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece Chairman of the Management Board Member of the Management Board Member of the Management Board, Manager of the Financial and Accounting department 24 August 2022 JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’ Interim Report for the First Six Months of 2022 Balance sheet 6 Assets Note 30.06.2022 EUR 31.12.2021 EUR Long-term investments Intangible assets Concessions, patents, licenses, trademarks and similar rights 672 1 478 Intangible assets total 8 672 1 478 Fixed assets (fixed assets, investment properties) Fixed assets Immovable properties - land parcels, buildings and constructions 115 045 123 771 Productive animals 23 277 33 586 Technological equipment and machinery 3 149 1 095 Other fixed assets and inventory 29 508 34 969 Prepayments for fixed assets - 3 200 Fixed assets total 9 170 979 196 621 Investment properties 10 68 000 68 000 Long-term financial investments Other securities and investments 11 684 684 Long-term financial investments total 684 684 Long-term investments total 240 335 266 783 Current assets Stock Raw materials, basic materials and auxiliary materials 18 187 24 211 Ready-made goods and goods for sale 12 1 003 400 856 983 Stock total 1 021 587 881 194 Receivables Trade receivables 13 356 976 259 828 Other receivables 14 6 927 5 659 Prepaid expenses 15 4 058 8 895 Accrued income 28 072 29 951 Receivables total 396 033 304 333 Cash 16 279 228 358 805 Current assets total 1 696 848 1 544 332 Assets total 1 937 183 1 811 115 JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’ Interim Report for the First Six Months of 2022 Balance sheet 7 Shareholders’ equity and liabilities Note 30.06.2022 EUR 31.12.2021 EUR Shareholders’ equity Share capital 17 591 416 591 416 Retained earnings or loss carried forward from previous years 1 031 686 968 685 Profit or loss of the reporting year 106 811 96 796 Shareholders’ equity total 1 729 913 1 656 897 Payables Short-term payables Prepayment received from customers 18 118 25 003 Trade payables 102 590 50 334 Taxes and social insurance payments 18 41 196 42 469 Other payables 31 194 19 815 Accrued liabilities 19 14 172 16 597 Short-term payables total 207 270 154 218 Payables total 207 270 154 218 Shareholders’ equity and liabilities total 1 937 183 1 811 115 Notes on pages 10 to 23 form an integral part of these financial statements. Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece Chairman of the Management Board Member of the Management Board Member of the Management Board, Manager of the Financial and Accounting department 24 August 2022 JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’ Interim Report for the First Six Months of 2022 Cash flow statement 8 Note 30.06.2022 EUR 30.06.2021 EUR Cash flow from operating activities Income from sale of goods and provision of services 824 932 719 672 Payments to suppliers, employees, other expenses arising from basic operations (873 551) (773 313) Gross cash flow from basic operations (48 619) (53 641) Expenses for enterprise income tax payments (459) (61) Net cash flow from operating activities (49 078) (53 702) Cash flow from investing activities Purchase of fixed assets and intangible investments (6 252) (52 107) Income from dispossession of fixed assets 8 908 2 070 Net cash flow from investing activities 2 656 (50 037) Cash flow from financing activities Subsidies received as a state support 2 315 3 509 Dividends paid ( 33 795) ( 46 469) Net cash flow from financing activities (31 480) (42 960) Result of foreign exchange rate fluctuations (1 675) (1 732) Net increase or decrease of cash and its equivalents (79 577) (148 431) Cash and its equivalents balance at the beginning of the reporting year 358 805 360 288 Cash and its equivalents balance at the end of the reporting year 16 279 228 211 857 Notes on pages 10 to 23 form an integral part of these financial statements. Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece Chairman of the Management Board Member of the Management Board Member of the Management Board, Manager of the Financial and Accounting department 24 August 2022 JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’ Interim Report for the First Six Months of 2022 Statement on changes in shareholders’ equity 9 Share capital Retained earnings carried forward from previous years Profit of the reporting year Shareholders’ equity total EUR EUR EUR EUR 31.12.2020 591 416 911 086 104 068 1 606 570 Profit of 2020 transferred to retained earnings of previous years - 104 068 (104 068) - Dividends distributed - (46 469) - (46 469) Profit of the reporting year - - 91 669 91 669 30.06.2021 591 416 968 685 91 669 1 651 770 31.12.2021 591 416 968 685 96 796 1 656 897 Profit of 2021 transferred to retained earnings of previous years - 96 796 (96 796) - Dividends distributed - (33 795) - (33 795) Profit of the reporting year - - 106 811 106 811 30.06.2022 591 416 1 031 686 106 811 1 729 913 Notes on pages 10 to 23 form an integral part of these financial statements. Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece Chairman of the Management Board Member of the Management Board Member of the Management Board, Manager of the Financial and Accounting department 24 August 2022 JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’ Interim Report for the First Six Months of 2022 Notes to the Financial Statements 10 (1) General information on the Company JSC ‘Siguldas ciltslietu un mākslīgās apsēklošanas stacija’ (hereinafter - the Company) was registered in the Register of Enterprises of the Republic of Latvia on 26 July 1991 and was reregistered in the Commercial Register of the Republic of Latvia on 19 June 2004. The Company’s basic activities are agriculture and the types of business are as follows: - production and sale of agricultural products – high-quality breeding animals semen, - making of milk analyses, - evaluation of cow exterior, - artificial insemination of cows, - milk recording data processing, - animals breeding organization. (2) Significant accounting principles Underlying principles of preparation of the Financial Statements The Company’s Financial Statements have been prepared according to the Law On Annual Reports and Consolidated Annual reports of the Republic of Latvia. According to Section 5 of the Law on Annual Reports and Consolidated Annual reports, the Company is classified as a small company according to the last two years figures. Taking into account the legal requirements for commercial companies whose transferable securities are listed on a regulated market, the Company applies requirements that are binding on a large company. The Profit or Loss Account is been prepared based on classification according to expense types. The Cash Flow Statement was prepared according to the direct method. Complying the regulation stated in Article 13 Part 5 Chapter 2 of the Law On Annual Reports and Consolidated Annual reports, the Company acknowledges, assesses, shows in its financial report and provides explicative information on investment properties in compliance with the international accounting standards. Accountig principles used The items of the Financial Statements have been evaluated according to the following accounting principles: - It is assumed that the Company will be a going concern; - The same evaluation methods have been used, which were used in the previous year; - Evaluation was done with sufficient prudence:  The Financial Statements include solely the profit gained until the balance sheet date,  All expected risk amounts and losses have been taken into account, which occurred during the reporting year or in previous years, also if they were known during a certain period of time between the balance sheets date and the day of preparing the Financial Statements,  All value decreasing and depreciation amounts have been taken into account irrespective whether the reporting year was closed with profit or loss; - reporting year related income and costs were recognized irrespective of the payment date and the date of receipt or issuance of invoice. Costs have been agreed with the income in the reporting period; - components of asset and liabilities items have been recognized separately; - the opening balance of the reporting year agrees with the closing balance of the previous year; - all items have been recognized, which materially influence assessment or decision-making process of the users of the annual report, insignificant items are merged and they are detailed in the Appendix; - operating transactions in the reporting year have been recognized in the Financial Statements by taking into account their economic substance and contents, rather than legal form. Financial instruments Fair value of financial assets and liabilities Fair value of financial assets and liabilities reflect the amount, for which it is possible to exchange assets or perform liabilities in a deal between well informed, interested and financially independent persons. If in the Company’s management opinion, fair value of financial assets and liabilities materially differs from the value recognized in the balance sheet, then the fair value of these assets and liabilities is recognized in the Notes to the Financial Statements. JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’ Interim Report for the First Six Months of 2022 Notes to the Financial Statements 11 Financial risks management Credit risk The Company’s management has developed credit policy, which is constantly controlled. Client evaluation is done for all customers above a fixed amount. The Company cooperates with clients who have proper credit assessment. Currency risk Based on the current structure of Company’s financial assets and liabilities held in foreign currencies, the currency risk is not material. Reporting period The reporting period is six months from 1 January to 30 June 2022. Revaluation of foreign currencies The Company’s functional currency and the currency used in the Financial Statements is euro (EUR). All transactions in foreign currencies are converted into euro according to the euro foreign exchange reference rate published by the European Central Bank on the day of particular transaction being performed. Monetary assets and liabilities, which are shown in foreign currencies, are converted into euro according to the fixed euro foreign exchange reference rate published by the European Central Bank on the last day of the reporting period. 30.06.2022 30.06.2021 USD 1.03870 1.18840 Currency exchange rate differences arising from settlements in currencies or when recognizing assets and liabilities by using currency exchange rates, which differ from the initial currency exchange rates used for accounting of transactions, are recognized in the profit or loss account in net value. Recognition of income Income is recognized according to the conviction about the Company’s possibility to gain economic benefit and in the amount, in which it is possible to state it, less value added tax and sales-related discounts. When recognizing income, also the following provisions are taken into account. Sale of goods Income is recognized when the Company has transferred to the purchaser major risks and indemnities related to the title of goods. Provision of services Income from services is recognized in the period when the services are provided. Penalty and delay charges Income from penalty and delay charges is recognized at the moment of their receipt. Interest Income is recognized according to the respective period of time. Long-term and short-term items Long-term items include amounts whose receipt, payments or write-off terms are due later after the end of the respective reporting year. Amounts, which are receivable, payable or written off during the year, are recognized in short-term items. Leasing transactions Financial leasing In cases when fixed assets are purchased on the conditions of financial leasing and the related risks and return are taken over, these fixed assets are recognized in the value, for which they could be purchased with immediate payment. Leasing interest payments and similar payments are included in the profit or loss account of that period when they occurred. JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’ Interim Report for the First Six Months of 2022 Notes to the Financial Statements 12 Intangible assets and fixed assets In the balance sheet, all intangible assets and fixed assets are reflected at their purchase prices, less depreciation. Depreciation is calculated from the first date of the next month after their commissioning and finished on the first date of the subsequent month after it is excluded from fixed assets. Depreciation is calculated according to the straight line method and is written off during the useful life time of respective fixed assets by choosing the following annual depreciation rates as fixed by the management: Intangible assets: Licenses 5 years Fixed assets: Buildings and constructions 10, 20, 25, 40 and 59 years Productive animals 4 years Equipment and machinery 5, 6 and 7 years Computer hardware and communication equipment 5 years Inventory and tools 3 and 5 years Other fixed assets 2 and 3 years Balances of fixed assets have been counted in the annual count of fixed assets. The Company capitalizes its fixed assets valued over 70 euro with useful life exceeding one year. Depreciation for improvements and other low costs items with the value less than 70 euro is recognized by 100 % after commissioning. If sufficient evidence is acquired that the future economic benefit associated with subsequent repair or reconstruction costs will flow to the Company, which exceeds the return set previously, costs are capitalized as additional costs to the fixed asset. Net gains or losses from disposal of fixed assets is calculated as the difference between the carrying amount of the fixed asset and proceeds from sale, and recognized in the income statements during the period when disposal are incurred. If it is possible to conclude due to any kind of occurrence or circumstances that residual value of fixed or intangible assets could not reach its recoverable value, appropriate value of fixed or intangible asset is to be decreased until recoverable value. Recoverable value is calculated as the highest of fair value less costs to sell or value in use. Productive animals meet the value criteria of fixed assets and are included in fixed assets. Investment properties Investment property is property (land plots, building or part of building) held by the owner or by lessee under a finance lease to earn rentals or for capital appreciation rather than use in the production or supply of goods or services or for administrative purposes or sale in the ordinary course of business. For the land with uncertain future use (if the Company has not determined that it will use the land as owner occupied or short term sale in the ordinary course of business, it is assumed that land is held for capital appreciation), it is classified as investment property. Investment property of the company– land in possession of the stock company, which market value is expected to grow. Investment properties have been filed according to their purchase value. No later than at the end of the year of account the investments properties are being revalued according to their real market value considering any other activities related to particular property. The revaluation is performed by a certified evaluator. Any changes in the market value of the investments properties are being shown in the profit and loss account. JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’ Interim Report for the First Six Months of 2022 Notes to the Financial Statements 13 Evaluation using a comparable transaction method was carried out by a certified evaluator: 2021 – LTD ‘Eiroeksperts’ 2020 – LTD ‘Eiroeksperts’ Stock Stock is recognized in the lowest cost or net sales value. All stock is assessed by using the average weighted method. Net sales value is the sales price of stock fixed during normal Company’s operations, less the stock completion and selling costs. In cases when the stock net selling value is lower than their cost price, provisions are made for these stocks for decrease of their value down to the net sales value. All direct costs, which are related to production of breeding animals - bull semen, during the year are booked in the profit or loss account and are adjusted at the end of the year when evaluating stocks according to the lowest sales value or cost price and including them in stocks as “Ready-made goods and goods for sale”. Trade receivables and other receivables In the balance sheet receivables are recognized in the recoverable value, provisions for doubtful receivables having been deducted. Provisions for doubtful debts are made in cases when there is objective evidence to the fact that the Company will not be able to receive the debts in full value according to the initially fixed repayment dates. Provisions for doubtful debts are the difference between the amortized purchase value of receivables and the recoverable value. The recoverable value of receivables is the current value of planned cash flow. Cash For the purposes of the cash flow statement, cash and cash equivalents comprise cash, the balances of the current bank account and other current liquid financial assets with maturities up to 90 days. Provisions Provisions are liabilities related to current or previous years events and at the preparation of financial statements it is probable that an outflow of resources will be required to settle the obligation and its amount can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation. Subsidies Amounts, which are received as a state support for agricultural, i.e., for covering of expenses for maintaining high-quality breed bulls, are included in the income of that reporting period when they are received and all material conditions for the grant are fulfilled. JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’ Interim Report for the First Six Months of 2022 Notes to the Financial Statements 14 Taxes Corporate income tax for the financial year Corporate income tax is payable on the distribution of profits and the conditional distribution of profits. Distributed and notionally distributed profits are taxed at the rate of 20 percent of the gross amount, or 20/80 of net costs. Corporate income tax on the payment of dividends is recognized in the profit and loss account as an expense in the period in which the dividends are declared and, in the case of other retained earnings, as incurred. Use of assumptions When preparing the financial statements, the Company’s management has to make calculations and assumptions, which impact recognition of assets and liabilities included in the financial statements as at the day of preparing the financial statements, as well as the income and expenses recognized in the specific reporting period. Management has made profit or loss assessment and considers that the financial statements reflect the true financial condition based on all currently available information. JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’ Interim Report for the First Six Months of 2022 Notes to the Financial Statements 15 (3) Net sales Sales include income gained during the year from the Company’s basic activities – sales of products and provision of services without value added tax and less discounts. Type of operations 30.06.2022 EUR 30.06.2021 EUR Sale of Livestock sperm and embryos 434 025 379 638 Milk laboratory services 179 310 167 548 Treatment of supervisory data 44 962 46 018 Artificial insemination of livestock 20 466 15 086 Other income 63 629 53 318 742 392 661 608 Distribution of net sales according to the geographical markets: 30.06.2022 EUR 30.06.2021 EUR Latvia 742 392 661 608 742 392 661 608 (4) Changes in stock of ready-made goods and unfinished products 30.06.2022 EUR 30.06.2021 EUR Changes in the value of semen stocks produced 45 084 21 248 45 084 21 248 (5) Other operating income 30.06.2022 EUR 30.06.2021 EUR State support for agricultural 2 315 3 509 Recovered doubtful and bad debts 26 520 19 650 Other income 3 22 28 838 23 181 JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’ Interim Report for the First Six Months of 2022 Notes to the Financial Statements 16 (6) Personnel costs 30.06.2022 EUR 30.06.2021 EUR Salaries for work 209 790 177 198 Life insurance with cash value accrual - 8 493 State social insurance contributions 49 067 41 414 Health insurance 8 541 8 587 Other costs 1 923 1 697 269 321 237 389 (7) Other operating expenses 30.06.2022 EUR 30.06.2021 EUR Insurance payments 2 851 4 295 Selling expenses 3 678 1 093 The costs of accreditation and employee training 2 605 2 227 Labour protection expenditure 1 979 1 859 Company’s management and administrative expenses 3 079 3 479 Regulated securities market expenses 8 413 6 866 Loss from foreign currency exchange rate fluctuations 3 644 2 534 Net loss from dispossession of fixed assets 505 3 520 Employees’ leisure and similar costs 3 003 1 858 Real estate tax 1 862 1 862 Other costs 7 341 6 038 38 960 35 631 JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’ Interim Report for the First Six Months of 2022 Notes to the Financial Statements 17 (8) Intangible assets Concessions, patents, licenses, trademarks and similar rights EUR Initial value 31.12.2021 10 785 Purchased - Disposed - 30.06.2022 10 785 Accrued depreciation adjustments 31.12.2021 9 307 Annual write-off of the value 806 Adjustments to accrued depreciation of excluded intangible assets - 30.06.2022 10 113 Book value as at 31.12.2021 1 478 Book value as at 30.06.2022 672 Concessions, patents, licenses, trademarks and similar rights EUR Initial value 31.12.2020 10 785 Purchased - Disposed - 30.06.2021 10 785 Accrued depreciation adjustments 31.12.2020 7 695 Annual write-off of the value 806 Adjustments to accrued depreciation of excluded intangible assets - 30.06.2021 8 501 Book value as at 31.12.2020 3 090 Book value as at 30.06.2021 2 284 JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’ Interim Report for the First Six Months of 2022 Notes to the Financial Statements 18 (9) Report on movement of fixed assets Land, buildings and construc- tions Productive animals Technological equipment and machinery Other fixed assets and inventory Prepayments for fixed assets Total EUR EUR EUR EUR EUR EUR Initial value 31.12.2021 467 494 50 469 306 399 293 338 3 200 1 120 900 Purchased - 5 237 2 784 1 431 - 9 452 Dispossessed or liquidated - (19 241) - (162) (3 200) (22 603) 30.06.2022 467 494 36 465 309 183 294 607 - 1 107 749 Accrued depreciation adjustments 31.12.2021 343 723 16 883 305 304 258 369 - 924 279 Calculated depreciation 8 726 6 134 730 6 892 - 22 482 Depreciation of dispossessed or liquidated fixed assets - (9 829) - (162) - (9 991) 30.06.2022 352 449 13 188 306 034 265 099 - 936 770 Book value as on 31.12.2021 123 771 33 586 1 095 34 969 3 200 196 621 Book value as on 30.06.2022 115 045 23 277 3 149 29 508 - 170 979 As on 30 June 2022, the cadastral value of real estate – land and constructions – was EUR 158 539. Land, buildings and constructions Productive animals and perennial plantings Technological equipment and machinery Other fixed assets and inventory Total EUR EUR EUR EUR EUR Initial value 31.12.2020 467 494 71 529 306 399 288 265 1 133 687 Purchased - 18 570 - 33 537 52 107 Dispossessed or liquidated - (8 593) - (3 938) (12 531) 30.06.2021 467 494 81 506 306 399 317 864 1 173 263 Accrued depreciation adjustments 31.12.2020 324 263 26 436 303 844 267 661 922 204 Calculated depreciation 9 730 7 463 730 10 556 28 479 Depreciation of dispossessed or liquidated fixed assets - (2 506) - (3 938) (6 444) 30.06.2021 333 993 31 393 304 574 274 279 944 239 Book value as on 31.12.2020 143 231 45 093 2 555 20 604 211 483 Book value as on 30.06.2021 133 501 50 113 1 825 43 585 229 024 As on 30 June 2021, the cadastral value of real estate – land and constructions – was EUR 158 539. JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’ Interim Report for the First Six Months of 2022 Notes to the Financial Statements 19 (10) Investment properties Land EUR Book value as on 31.12.2020 68 000 Increase/decrease of value due to revaluation - Book value as on 30.06.2021 68 000 Book value as on 31.12.2021 68 000 Increase/decrease of value due to revaluation - Book value as on 30.06.2022 68 000 (11) Other securities and investments EUR Purchase value as on 31.12.2021 684 Book value as on 31.12.2021 684 Purchase value as on 30.06.2022 684 Book value as on 30.06.2022 684 (12) Ready-made products and goods for sale 30.06.2022 EUR 31.12.2021 EUR Bull semen 990 633 839 983 Other goods for sale 12 767 17 000 1 003 400 856 983 (13) Trade receivables 30.06.2022 EUR 31.12.2021 EUR Accounting value of trade receivables 399 088 328 460 Provisions for doubtful trade receivables (42 112) (68 632) 356 976 259 828 JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’ Interim Report for the First Six Months of 2022 Notes to the Financial Statements 20 (14) Other receivables 30.06.2022 EUR 31.12.2021 EUR VAT for received goods and services - 672 VAT on advance payments received 3 056 4 210 Corporate income tax overpayment 246 - Other receivables 3 625 777 6 927 5 659 (15) Prepaid expenses The item recognizes the costs made during the reporting year, but referring to the next reporting periods. 30.06.2022 EUR 31.12.2021 EUR Advertising costs 44 120 Insurance 3 694 6 112 Press and legislation updates’ subscription 21 1 274 Server maintenance and similar costs - 273 Other prepaid expenses 299 1 116 4 058 8 895 (16) Cash Break-down of cash according to currencies: 30.06.2022 31.12.2021 Currency EUR Currency EUR Cash in hand EUR - 3 530 - 1 182 Cash in bank EUR - 275 698 - 357 623 279 228 358 805 (17) Share capital Since 21 May 2007 Company’s shares are quoted on the Second List of Nasdaq Riga Stock Exchange (ISIN code: LV0000100600). The Company’s share capital has been formed of shareholders’ investments. The total number of shares as per 30.06.2022 is 422 440, the nominal value of one share is 1.40 euro. The total number of shares as per 31.12.2021 was 422 440, the nominal value of one share – 1.40 euro. 30.06.2022 EUR 31.12.2021 EUR Bearer shares with voting rights 590 016 590 016 Shares owned by the Board without voting rights 1 400 1 400 591 416 591 416 421 440 shares or 99.8% of the share capital are bearer shares, which give equal rights to receive dividends, receipt of liquidation quota and voting rights in the Shareholders’ Meeting. JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’ Interim Report for the First Six Months of 2022 Notes to the Financial Statements 21 Owners of 421 440 bearer shares 30.06.2022 % 31.12.2021 % ‘Siguldas mākslīgās apsēklošanas stacija’ Ltd 49.92 49.92 Inita Bedrīte, chairwoman of the Supervisory Board 0.26 0.26 Maija Beča, deputy chairwoman of the Supervisory Board 0.73 0.73 Baiba Mecauce, member of the Supervisory Board 2.44 2.44 Guntis Mecaucis, member of the Supervisory Board 1.29 1.29 Jānis Tūtāns, member of the Supervisory Board till 22.04.2022 - 0.25 Sarmīte Arcimoviča, member of the Management Board 0.91 0.91 Valda Mālniece, member of the Management Board 3.31 3.31 Other shareholders 41.14 40.89 100.00 100.00 1 000 shares or 0.24% of the share capital, which are not included in the regulated market, are personnel registered shares, which may be obtained only by Members of the Board, and they give equal rights only to receipt of dividend and liquidation quota. Owners of the Company’s personnel registered shares according to the Company’s carried shareholders registry. 30.06.2022 number 31.12.2021 number Nils Ivars Feodorovs, chairman of the Management Board 400 400 Sarmīte Arcimoviča, member of the Management Board 300 300 Valda Mālniece, member of the Management Board 300 300 1 000 1 000 There are no share alienation restrictions, nor the necessity to receive the Company’s or other shareholders’ consent for alienation of shares. There are no restrictions on voting rights, nor any other similar restrictions. Earnings per share Earnings per one share is calculated by dividing the profit of the reporting period with the average weighted number of shares during the year. 30.06.2022 EUR 30.06.2021 EUR Profit or loss of the reporting period 106 811 91 669 Average weighted number of shares during the year 422 440 422 440 0.253 0.217 JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’ Interim Report for the First Six Months of 2022 Notes to the Financial Statements 22 (18) Taxes and social insurance payments Tax type 30.06.2022 EUR 31.12.2021 EUR Value added tax 15 235 20 003 Personal income tax 8 766 7 486 Social insurance payments 17 092 14 788 Nature resource tax 92 103 Corporate income tax - 79 Business risk state fee 11 10 41 196 42 469 Tax overpaid declared in position ‘Other receivables’ (19) Accrued liabilities 30.06.2022 EUR 31.12.2021 EUR Calculated liabilities to personnel for unused vacation 12 997 12 997 Accrued accounts payable 1 175 3 600 14 172 16 597 (20) Information on the number of management members and remuneration 30.06.2022 EUR 30.06.2021 EUR Remuneration to five Supervisory Board members for execution of functions 4 284 4 620 Social insurance payments from remuneration to five Supervisory Board members for execution of functions 1 114 1 065 Remuneration to three Management Board members for execution of functions 20 791 18 213 Social insurance payments from remuneration to three Management Board members for execution of functions 4 420 4 296 Total remuneration to the management members 30 609 28 194 There are no special regulations put in place to regulate the election of the Management Board members, the change of the composition of the Management Board and amendments to the Articles of Association. All Management Board members have equal Company’s representation rights. The chairman of the Management Board represents the Company separately, but other Management Board members may represent the Company only collectively. There is no agreement signed between the Company and the Management Board members ensuring any kind of compensation. JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’ Interim Report for the First Six Months of 2022 Notes to the Financial Statements 23 (21) Average number of employees 30.06.2022 number 30.06.2021 number Supervisory Board members (all employees perform the functions of the Supervisory Board member as an extra work in addition to principal work duties) 2 3 Management Board members (two employees perform the functions of the Management Board member as an extra work in addition to principal work duties) 3 3 Other employees 23 26 Total average number of employees 28 32 (22) Post-Balance-Sheet Events In 2022 a number of restrictive measures related to the war in Ukraine have entered into force in the Republic of Latvia and other countries, which is reducing the country's economic development. It is not to be foreseen how the situation will develop in the future, and therefore there is uncertainty about economic development. The Company's management constantly evaluates the situation. At present, the Company's operations have not been affected by the restrictions, nor has there been any decrease in cash flow. The Company's management believes that the introduced restrictions will not significantly affect the Company's operations. The outbreak of Covid-19 will not have a substantial impact on the Company's operations, financial situation and economic performance. During the period of time in between the closing of the balance sheet and the day the report is being signed by the Board, there have been no significant events or extraordinary circumstances taking place that may influence the results of the reporting year and the Company’s financial condition. Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece Chairman of the Management Board Member of the Management Board, Manager of the Production and Marketing department Member of the Management Board, Manager of the Financial and Accounting department 24 August 2022 JSC ‘SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA’ Interim Report for the First Six Months of 2022 Report on Management Liability 24 The management of JSC ‘Siguldas ciltslietu un mākslīgās apsēklošanas stacija’ (hereinafter - the Company) is responsible for the preparation of the financial statements of the Company. The financial statements are prepared in accordance with the source documents and present fairly the financial position of the Company as of 30 June 2022 and the results of their operations and cash flows for the year then ended. The Management Board confirms that the financial statements and notes to the financial statements contained on pp. 3-23 have been prepared on the basis of source documents and the decisions adopted and the assessments made were conservative and prudent. The accounting policy compared to the preceding year has not changed. The Management Board confirms that the financial statements have been prepared on a going-concern basis The Management is responsible for keeping a proper accounting system, preservation of Company’s assets, and for detection and prevention of fraud and other irregularities in the Company. The Management is also responsible for compliance with the requirements of Latvian laws as well as European Union regulations applicable to the Company. Interim report for the first six months of the year 2022 has not been audited by a sworn auditor. Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece Chairman of the Management Board Member of the Management Board, Manager of the Production and Marketing department Member of the Management Board, Manager of the Financial and Accounting department 24 August 2022