Akciju sabiedriba "VEF"

Quarterly Report • May 28, 2021

JSC VEF, Brīvības gatve 214,Rīga,LV-1039

JOINT STOCK COMPANY VEF (Unified registration number 40003001328)

NON- AUDITED FINACIAL STATEMENTS For the period ended on March 31, 2021

JSC VEF, Brīvības gatve 214,Rīga,LV-1039

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

JSC VEF, Brīvības gatve 214,Rīga,LV-1039

GENERAL INFORMATION Title of enterprise Joint stock company VEF Legal type of enterprise Public joint stock company Registred: On April 15, 1991 in the Register of Enterprises of the Republic of Latvia, reregistred on December 7, 2000 with Nbr. 000300132 On April 14, 2004 registered in the Commercial Register, Nbr. 40003001328 Taxpayers' Reg. Nbr. LV 40003001328 Legal address Brīvības gatve 214, Rīga, LV-1039, Republic of Latvia Equity capital ¹ : EUR 2 722 492 registered and paid up capital. Core businesses: *Letting and renting of real-estate property Chairman of the Board of the Company: Chief executive officer: GINTS FEŅUKS TAMĀRA KAMPĀNE Members of the Board: MĀRTIŅŠ CAUNA MODRIS ZOMMERS Members of the Supervisory Council: ERVINS KAMPANS EGILS ARAJS GUNTIS LIPIŅŠ LAILA LIDUMA 01.01.2021. - 31.03.2021. Period of account:

¹ Paid-up and registered equity capital EUR 2 722 492

² The company`s capital consists of the 623 528 bearer shares and 1 321 109 registered shares nominal value of shares EUR 1.40

Report on the Management Board's responsibility to the non-audited financial statement of JSC "VEF" for the three 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 March 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 information included in the middle-term management's report is true.

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
	31.03.2021	31.03.2020	31.12.2020
LONG-TERM INVESTMENTS
Intangible assets
Concessions,patents,licences	0	32	0
Total intangible assets	0	32	0
Fixed Assets
Land,buildings and other property	5 425 914	5 485 112	5 499 911
Other fixed assets and inventory	91 635	83 555	101 294
Total fixed assets	5 517 549	5 568 667	5 542 008
Long-term finansial investments
Investments in subsidiaries	3 000	3 000	3 000
Loans to subsidiaries	65 000	60 000	65 000
Long-term finansial investments, total	68 000	63 000	68 000
Non-current assets, total		5 631 699	5 610 008
Debtors
Customers and client debts	17 899	13 399	38 036
Other debtors	12 304	15 098	23 663
Future period	3 544	4 450	4 859
Future period expenses	18 989	32 230	30 824
Total debtors	52 736	65 177	97 382
Cash	309 952	394 977	305 044
Total Current assets	362 688	460 164	402 426
TOTAL ASSETS	5 948 237	6 091 853	6 012 434

LIABILITIES
	EUR	EUR	EUR
	31.03.2021	31.03.2020	31.12.2020
Stockholder's Equity
Common stock	2 722 492	2 722 492	2 722 492
Long-term investments revaluation reserve	641 099	649 285	641 099
Other reserves	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	7 889	20 583	12 953
Total stockholder's equity	3 469 817	3 477 744	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	77 050	61 594	77 050
Total long-term liabilities	2 148 497	2 259 041	2 148 497
Current liabilities
Borrowings from credit institutions	126 000	126 000	168 000
Accounts payable	17 431	35 267	34 050
Taxes and social security payments	22 966	30 212	24 613
Other liabilities	15 057	15 726	13 859
Other borrowings	24 691	15 971	31 801
Accrued liabilities	101 245	98 250	106 984
Prepayments from buyers	22 533	33 642	22 702
Total current liabilities	329 923	355 068	402 009
Total liabilities	2 478 420	2 614 109	2 550 506
TOTAL LIABILITIES&STOCKHOLDER'S	5 948 237	6 091 853	6 012 434
EQUITY

PROFIT AND LOSSES ACCOUNT FOR YEAR, WHICH ENDS ON MARCH 31.2021.

		EUR 31.03.2021 -	EUR 31.03.2020 -
1	2	4	4
Net turnover		251 825	302 415
Cost of goods sold	1	-192 150	-227 401
Gross profit		59 675	75 014
Administrative expenses	2	-26 304	-23 723
Other income from operations	3	8 329	0
Other expenses from operations	4	-442	-431
Finansial services expenses	6	-33 369	-30 277
Profit before taxes		7 889	20 583
Other taxes	7	0	0
Net profit		7 889	20 583

Earnings per share (EPS) on

31.03.2021 – 0.0041 EUR

31.03.2020 -0.01 EUR

Chairman of the Board

Member of the Board T.Kampāne

G.Feņuks

CASH FLOW STATEMENT FOR YEAR THAT ENDS ON MARCH 31, 2021

		2021 31.03.	2020 31.03.	2020 31.12.
		EUR	EUR	EUR
I.	CASH FLOW FROM OERATING ACTIVITIES
	Profit before outstanding items and taxes (+)	7 889	20 583	12 953
	Adjustments:
	fixed assets depreciation ( +)	26 557	24 230	104 669
	intangible assets depreciation (+)	0 33 369	2 30 277	35 135 953
	finacial services income Profit or losses before adjustments from current
	assets and liabilities	67 815	75 092	253 610
	Adjustments:
	debtors : increase (-); decrease (+)	39 738	25 615	-6 590
	liabilities: increase (-); decrease (+)	-18 067	1 405	35 331
	Gross cash provide by operating activities	89 486	102 112	282 351
	Payments for financial	-33 369	-30 277	-135 953
	Net cash provided by operating activities before outstanding items:
	Cash flow from outstanding items (-/+)
	Net cash provided by operating activities :	56 117	71 835	146 398
	CASH FLOWS FROM INVESTING
	ACTIVITIES :
	Fixed assets purchase	-2 099	0	-53 780
	Loans to subsidiaries
	Interest in related companies		0
II.
	Net cash used in investing activities :	-2 099	0	-58 780
	CASH FLOWS FROM FINANCING ACTIVITIES:
	Payments for leased fixed assets	-7 110	-5 250	-26 966
	Expenses for borrowings repayment	-42 000	-42 000	-126 000
	Net cash provided by financing activities :	-49 110	-47 250	-152 966
	Net cash flom	4 908	24 585	-65 348
IV.
	CASH AT BEGINNING OF YEAR	305 044	370 392	370 392
	CASH AT END OF YEAR	309 952	394 977	305 044

STATEMENT OF CHANGES IN EQUITY FOR YEAR THAT ENDS ON MARCH 31, 2021

	31.03.2021 EUR	31.03.2020 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
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
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	7 889	20 583	12 953
Dividendes
Included in accumulations
Balance at the end of the financial year	61 749	61 490	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	3 469 817	3 477 744	3 461 928

(1) Net turnover

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

Type of commercial operations	2021.03.31	2020.03.31
	EUR	EUR
power supply, distribution and servicing	0	36 233
Rental income	148 766	155 441
utility services	103 059	110 741
Total	251 825	302 415

Distribution of net turnover by geographical markets

	2021.03.31	2020.03.31
Country	EUR	EUR
Latvia	251 825	302 415
Total	251 825	302 415

(2) Cost of sales

	2021.03.31	2020.03.31
	EUR	EUR
labor and social payments	60 835	62 374
depreciation	26 557	24 230
cash turnover expenses	35	88
transport	5 520	4 089
residential services (electricity, water)	46 941	81 347
personnel training	0	0
telecommunication service	248	228
other costs tied to commercial operations	46 683	48 897
intangible asset depreciation	0	2
insurance (buildings)	1 207	1 207
real estate tax (buildings ,land)	2 969	3 784
land rent to LPA	1 155	1 155
Total	192 150	227 401

(3)	Costs of administration	2021.03.31	2020.03.31
		EUR	EUR
	labor and social payments	16 609	16 820
	telecommunication service	248	227
	office supplies	182	102
	transport expenses for administrative needs	5 521	4 089
	representative expenses	1 200	705
	legal assistance or raid	0	0
	NASDAQ annual fee	2 544	1 780
	Total	26 304	23 723

Other revenues from commercial

(4) operation

		2021.03.31	2020.03.31
		EUR	EUR
	other income	8 329	0
	Total	8 329	0
	Other costs of commercial operations
(5)		2021.03.31	2020.03.31
		EUR	EUR
	allowances and bonuses	442	431
	Total	442	431
	Payments of interest and similar
	expenses	2021.03.31	2020.03.31
		EUR	EUR
(6)
	credit interests	32 739	30 138
	interest to Līzings	640	139
	Total	33 379	30 277