Akciju sabiedriba "VEF"

Interim / Quarterly Report • Nov 30, 2021

JOINT STOCK COMPANY VEF (Unified registration number 40003001328)

NON- AUDITED FINANCIAL STATEMENTS For the period ended on September 30, 2021 In accordance with the Law of the Republic of Latvia

CONTENTS

General information

Report on the Management Board's responsibility

Balance sheet

Income statement

Cash flow statement

Statement of changes in equity

Notes to the financial statement

GENERAL INFORMATION

Legal type of enterprise Public joint stock company Registred: registred on December 7, 2000 with Nbr. 000300132 Taxpayers' Reg. Nbr. LV 40003001328 Legal address Brīvības gatve 214, Rīga, LV-1039, Republic of Latvia Phone: 7270618. Equity capital 1 : EUR 2 722 492 paid and registered equity capital. Core businesses:	Title of enterprise	Joint stock company VEF
		On April 15, 1991 in the Register of Enterprises of the Republic of Latvia, re
		On April 14, 2004 registered in the Commercial Register, Nbr. 40003001328
*Letting and renting of real-estate property
Name of the holder of shares As on September 31, 2021: The company's capital consists of the 623 528 (32 %) bearer shares
and share capital (%) And 1 312 109 ( 68% ) registered shares
Subsidiary SIA "VEF Projekts " (100%)", Brivibas gatve 214,Riga
Chief executive officer: Chairman of the Board of the Company:
GINTS FENUKS
Members of the Board: TAMĀRA KAMPĀNE
MARTINS CAUNA
MODRIS ZOMMERS
Members of the Supervisory Council: EGILS ARAJS
GUNTIS LIPINŠ
ERVINS KAMPANS
Period of account: 01.01.2021. - 30.09.2021.
Qualified auditor: GUNTA DARKEVICA. Certificate Nbr.165

¹ Paid-up and registered equity capital 2 722 492 common shares

The company's capital consists of the 623 528 bearer shares and 1 321 109 registered shares Nominal value of a common share is EUR 1.40.

Report on the Management Board's responsibility to the non-audited financial statement of JSC "VEF" for the nine months of 2021.

Management Board of JSC "VEF" (hereinafter – the Company) is responsible for preparation of the middle-term financial statements of the Company. The middle-term financial statements are not audited.

Middle-term financial statements are prepared based on justifying documents and represent true and clear overview on the Company's Assets and Equity and Liabilities, its financial standing and results of activity as well as cash flows within the reporting period ended on September 31, 2021.

Accounting principles used in preparation of the middle-term financial statements have not been changed comparing to the previous reporting period. During preparation of the middle-term financial statements decisions taken by the Management Board and estimations made have been cautious and well-founded.

The Management Board of the Company is responsible for ensuring the corresponding accounting system, securing the assets of the Company, as well as for prevention and exposure of fraud and other violation within the Company.

On behalf of the Management Board of JSC "VEF",

Gints Feņuks Chairman of the Management Board

ASSETS
	EUR	EUR	EUR
	30.09.2021	30.09.2020	31.12.2020
LONG-TERM INVESTMENTS
Intangible assets
Concessions,patents,licences	0	29	0
Total intangible assets	0	29	0
Fixed Assets
Land,buildings and other property	5 458 749	5 455 513	5 440 714
Other fixed assets and inventory	120 399	114 055	101 294
Advance payments for fixed assets	0	0	0
Total fixed assets	5 579 148	5 569 568	5 542 008
Long- term financial investments
Investments in subsidiary	3 000	3 000	3 000
Loans to subsidiary	67 000	60 000	65 000
Total finacial investments	70 000	63 000	68 000
Total long-term investments	5 649 148	5 632 597	5 610 008
Current assets
Debtors
Customers and client debts	12 146	11 937	38 036
Other debtors	86 457	38 223	23 663
Future period expenses	5 349	2 567	4 859
Future period income	13 654	21 943	30 824
Total debtors	117 606	74 670	97 382
Cash	85 709	380 376	305 044
Total Current assets	203 315	455 046	402 426
TOTAL ASSETS	5 582 463	6 087 643	6 012 434

LIABILITIES
	EUR	EUR	EUR
	30.09.2021	30.09.2020	31.12.2020
Stockholder's Equity
Common stock	2 722 492	2 722 492	2 722 492
Long-term investments revaluation reserve	641 099	657 470	641 099
Rezerve	44 477	44 477	44 477
Total accumulation
Retained earnings from the previous years	53 860	40 907	40 907
Retained earnings of the financial years	- 1 157	56 250	12 953
Total stockholder's equity	3 460 771	3 513 411	3 461 928
LIABILITIES
Long-term liabilities
Borrowings from credit institutions	2 024 174	2 150 174	2 024 174
Prepayments from buyers	47 273	47 273	47 273
Other liabilities	128 791	109 559	77 050
Total long-term liabilities	2 200 238	2 307 006	2 148 497
Current liabilities
Borrowings from credit institutions	42 000	84 000	168 000
Accounts payable	9 064	21 676	34 050
Taxes and social security payments	22 325	24 850	24 613
Other liabilities	14 808	14 795	13 859
Prepayments from buyers	16 922	32 571	22 702
Accrued liabilities	79 049	81 704	106 984
Other loans	7 286	7 630	31 801
Total current liabilities	191 454	267 226	402 009
Total liabilities	2 391 692	2 574 232	2 550 506
TOTAL LIABILITIES&STOCKHOLDER'S	5 852 463	6 087 643	6 012 434

EQUITY

PROFIT AND LOSSES ACCOUNT FOR YEAR, WHICH ENDS ON SEPTEMBER 30.2021.

		EUR 30.09.2021	EUR 30.09.2020
1	2	3	4
Net turnover	1	712 266	812 063
Cost of goods sold	2	-550 266	-592 399
Gross profit		162 000	219 664
Administrative expenses	3	-69 831	-61 766
Other income from operations	4	9 701	1 532
Other expenses from operations	5	-1 327	-2 847
Finansial services expenses	6	-101 700	-100 333
Profit before taxes		-1 157	56 250
Net profit		-1 157	56 250

Earnings per share (EPS) on 30.09.2020 -0.03 EUR

Earnings per share (EPS) on 30.09.2021- 0.00 EUR

Chairman of the Board G.Feņuks Member of

the Board

T.Kampane

CASH FLOW STATEMENT FOR YEAR THAT ENDS ON SEPTEMBER 30, 2021

		2021	20120	2020
		30.09.	30.09.	31.12.
		EUR	EUR	EUR
I.	CASH FLOW FROM OERATING ACTIVITIES
	Profit before outstanding items and taxes (+)	-1 157	56 250	12 953
	Adjustments:
	fixed assets depreciation ( +)	79 894	77 109	104 669
	intangible assets depreciation (+)	0	5	35
	finacial services income	101 700	100 333	135 953
	Profit or losses before adjustments from current assets and liabilities	180 437	233 697	253 610
	Adjustments:
	debtors : increase (-); decrease (+)	-20 224	16 122	-6 590
	liabilities: increase (-); decrease (+)	-55 053	16 904	35 331
	Gross cash provide by operating activities	105 160	266 723	282 351
	Payments for financial	-101 700	-100 333	-135 953
	Net cash provided by operating activities before outstanding items:	3 460	166 390	146 398
	Cash flow from outstanding items (-/+)
	Net cash provided by operating activities :
	CASH FLOWS FROM INVESTING ACTIVITIES :
	Fixed assets purchase	-64 532	-53 780	-53 780
II.	Investments in subsidiary	0	0	0
	Loans to subsidiary	-2 000	0	-5 000
	Net cash used in investing activities :	-66 532	-53 780	-58 780
	CASH FLOWS FROM FINANCING ACTIVITIES:
	Expenses for borrowings repayment	-126 000	-84 000	-126 000
III.	Payment Līzings,	-30 263	-18 626	-26 966
	Net cash provided by financing activities :	-156 263	-102 626	-152 966
	Net cash flom	-219 335	9 984	-65 348
	CASH AT BEGINNING OF YEAR	305 044	370 392	370 392
	CASH AT END OF YEAR	85 709	380 376	305 044

	30.09.2021 EUR	30.09.2020 EUR	31.12.2020 EUR
Stockholder's eguity
Balance at the beginning of the financial year	2 722 492	2 722 492	2 722 492
Increase from
Decrease from denomination of shares from lats to euro
Balance at the end of the financial year	2 722 492	2 722 492	2 722 492
Long-term investments revaluation reserve
Balance at the beginning of the financial year	641 099	649 285	649 285
Increase from
Decrease from			-8 186
Balance at the end of the financial year	641 099	649 285	641 099
Accumulations
Balance at the beginning of the financial year	44 477	44 477	44 477
Increase from denomination of shares from lats to euro
Decrease from
Balance at the end of the financial year	44 477	44 477	44 477
Retained earnings
Balance at the beginning of the financial year	53 860	40 907	40 907
Profit or losses of the financial year	-1 157	56 250	12 953
Dividendes
Included in accumulations
Balance at the end of the financial year	52 703	97 157	53 860
Stockholder's eguity (total)
Balance at the beginning of the financial year	3 461 928	3 457 161	3 457 161
Balance at the end of the financial year	3 460 771	3 513 411	3 461 928

STATEMENT OF CHANGES IN EQUITY FOR YEAR THAT ENDS ON SEPTEMBER 30, 2021

(1) Net turnover

Turnover consists of revenues that the Company gained in the first nine months of 2021 from its core business-service provision without VAT

Type of commercial operations	2021.09.30	2020.09.30
	EUR	EUR
power supply, distribution and servicing	0	77 358
office renting service	556 858	542 245
utility services	155 408	192 460
Total	712 266	812 063

Distribution of net turnover by geographical markets

	2021.09.30	2020.09.30
Country	EUR	EUR
Latvia	712 266	812 063
Total	712 266	812 063

(2) Cost of sales

	2021.09.30 EUR	2020.09.30
		EUR
labor and social payments	156 889	187 821
depreciation	79 894	77 109
transport	13 752	9 020
residential services ( electricity, water )	105 187	150 609
personnel training	0	0
telecommunication service	586	631
other costs tied to commercial operations	174 676	143 481
insurance (buildings)	3 713	3 705
land rent to Possessor	3 464	3 467
depreciation of license	0	5
real estate tax (buildings, land )	11 876	16 366
cash turnover expenses	229	185
Total	550 266	592 399

(3)	Costs of administration	2021.09.30	2020.09.30
		EUR	EUR
	labor and social payments	49 204	41 477
	telecommunication service	585	631
	office supplies	0	101
	transport expenses for administrative needs	13 751	9 020
	representative expenses,personal cost	0	1 129
	legal assistance or raid	15	3 450
	NASDAQ RIGA annual fee	6 276	5 958
	Total	69 831	61 766

Other revenues from commercial operation

(4)		2021.09.30 EUR	2020.09.30 EUR
	other revenues	9 701	1 532
	Total	9 701	1 532

Other costs of commercial operations

(5)		2021.09.30 EUR	2020.09.30 EUR
	allowances and bonuses	1 327	2 847
	Total	1 327	2 847
	Payments of interest and similar expenses
		2021.09.30	2020.09.30
(6)		EUR	EUR
	credit interests	99 742	98 686
	Līzinga interest	1 958	1 647
	Total	101 700	100 333