Akciju sabiedriba "VEF"

Annual / Quarterly Financial Statement • Nov 30, 2020

JOINT STOCK COMPANY VEF (Unified registration number 40003001328)

NON- AUDITED FINANCIAL STATEMENTS For the period ended on September 30, 2020 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

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, re registred on December 7, 2000 with Nbr. 000300132
Taxpayers' Reg. Nbr.	On April 14, 2004 registered in the Commercial Register, Nbr. 40003001328 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:
	Power supply - distribution of power; Letting and renting of real-estate property
Name of the holder of shares	As on September 30, 2020: 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:
Members of the Board:	GINTS FENUKS TAMĀRA KAMPĀNE
	MARTINS CAUNA
	MODRIS ZOMMERS
Members of the Supervisory Council:	EGILS ARAJS
	LAILA LIDUMA GUNTIS LIPINŠ
	ERVINS KAMPANS
Period of account:	01.01.2019. - 30.09.2019.
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 2020.

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 30, 2020.

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
	30.09.2020	30.09.2019	31.12.2019
LONG-TERM INVESTMENTS
Intangible assets
Concessions,patents,licences	29	36	35
Total intangible assets	29	36	35
Fixed Assets
Land,buildings and other property	5 455 513	5 514 711	5 499 911
Other fixed assets and inventory	114 055	102 432	92 985
Advance payments for fixed assets	0	0	0
Total fixed assets	5 569 568	5 617 143	5 592 896
Long- term financial investments
Investments in subsidiary	3 000	3 000	3 000
Loans to subsidiary	60 000	60 000	60 000
Total finacial investments	63 000	63 000	63 000
Total long-term investments	5 632 597	5 680 179	5 592 896
Current assets
Debtors
Customers and client debts	11 937	9 360	23 901
Other debtors	38 223	24 023	24 799
Future period expenses	2 567	2 691	4 830
Future period income	21 943	27 163	37 262
Total debtors	74 670	63 237	90 762
Cash	380 376	339 576	370 392
Total Current assets	455 046	402 813	461 184
TOTAL ASSETS	6 087 643	6 082 992	6 117 115

LIABILITIES
	EUR	EUR	EUR
	30.09.2020	30.09.2019	31.12.2019
Stockholder's Equity
Common stock	2 722 492	2 722 492	2 722 492
Long-term investments revaluation reserve	657 470	657 470	657 470
Rezerve	44 477	44 477	44 477
Total accumulation
Retained earnings from the previous years	40 907	-81 389	-81 389
Retained earnings of the financial years	56 250	108 403	122 296
Total stockholder's equity	3 513 411	3 451 453	3 457 161
LIABILITIES
Long-term liabilities
Borrowings from credit institutions	2 150 174	2 318 174	2 150 174
Prepayments from buyers	47 273	47 273	47 273
Other liabilities	109 559	84 331	61 594
Total long-term liabilities	2 307 006	2 449 778	2 259 041
Current liabilities
Borrowings from credit institutions	84 000	42 000	168 000
Accounts payable	21 676	52 964	34 658
Taxes and social security payments	24 850	26 225	30 891
Other liabilities	14 795	12 431	13 699
Prepayments from buyers	32 571	21 890	32 930
Accrued liabilities	81 704	22 573	99 514
Other loans	7 630	3 678	21 221
Total current liabilities	267 226	181 761	400 913
Total liabilities	2 574 232	2 631 539	2 659 954
TOTAL LIABILITIES&STOCKHOLDER'S	6 087 643	6 082 992	6 117 115

EQUITY

PROFIT AND LOSSES ACCOUNT FOR YEAR, WHICH ENDS ON SEPTEMBER 30.2020.

		EUR 30.09.2020	EUR 30.09.2019
1	2	3	4
Net turnover	1	812 063	847 399
Cost of goods sold	2	-592 399	-558 587
Gross profit		219 664	288 812
Administrative expenses	3	-61 766	-84 220
Other income from operations	4	1 532	4 521
Other expenses from operations	5	-2 847	-3 253
Finansial services expenses	6	-100 333	-97 457
Profit before taxes		56 250	108 403
Net profit		56 250	108 403

Earnings per share (EPS) on 30.09.2019 -0.06 EUR

Earnings per share (EPS) on 30.09.2020- 0.03 EUR

Chairman of the Board G.Feņuks Member of

the Board

T.Kampane

CASH FLOW STATEMENT FOR YEAR THAT ENDS ON SEPTEMBER 30, 2020

		2020	2019	2019
		30.09.	30.09.	31.12.
		EUR	EUR	EUR
I.	CASH FLOW FROM OERATING ACTIVITIES
	Profit before outstanding items and taxes (+)	56 250	108 403	122 296
	Adjustments:
	fixed assets depreciation ( +)	77 109	68 332	92 578
	intangible assets depreciation (+)	5	5	7
	finacial services income	100 333	97 457	129 531
	Profit or losses before adjustments from current assets and liabilities	233 697	274 197	344 412
	Adjustments:
	debtors : increase (-); decrease (+)	16 122	11 623	15 932
	liabilities: increase (-); decrease (+)	16 904	42 477	45 101
	Gross cash provide by operating activities	266 723	328 297	405 445
	Payments for financial	-100 333	-97 457	-129 531
	Net cash provided by operating activities before outstanding items:	166 390	230 840	275 914
	Cash flow from outstanding items (-/+)
	Net cash provided by operating activities :		230 840
	CASH FLOWS FROM INVESTING ACTIVITIES :
	Fixed assets purchase	-53 780	-119 394	-85 458
II.	Investments in subsidiary	0	0	0
	Loans to subsidiary	0	0	0
	Net cash used in investing activities :	-53 780	-119 394	-86 458
	CASH FLOWS FROM FINANCING ACTIVITIES:
	Expenses for borrowings repayment	-84 000	-102 000	-144 000
III.	Payment Līzings,	-18 626	-13 208	-18 402
	Net cash provided by financing activities :	-102 626	-115 208	-162 402
	Net cash flom	9 984	-3 762	27 054
	CASH AT BEGINNING OF YEAR	370 392	343 338	343 338
	CASH AT END OF YEAR	380 376	339 576	370 392

STATEMENT OF CHANGES IN EQUITY FOR YEAR THAT ENDS ON SEPTEMBER 30, 2020

	30.09.2020 EUR	30.09.2019 EUR	31.12.2019 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	649 285	657 470	657 470
Increase from
Decrease from			8 185
Balance at the end of the financial year	649 285	657 470	649 285
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	40 907	-81 389	-81 389
Profit or losses of the financial year	56 250	108 403	122 296
Dividendes
Included in accumulations
Balance at the end of the financial year	97 157	27 014	40 907
Stockholder's eguity (total)
Balance at the beginning of the financial year	3 457 161	3 343 050	3 343 050
Balance at the end of the financial year	3 513 411	3 451 453	3 457 161

(1) Net turnover

Turnover consists of revenues that the Company gained in the first nine months of 2020 from its core business-service provision without VAT

Type of commercial operations	2020.09.30	2019.09.30
	EUR	EUR
power supply, distribution and servicing	77 358	90 600
office renting service	542 245	558 355
utility services	192 460	198 444

Distribution of net turnover by geographical markets

Country	2020.09.30 EUR	2019.09.30 EUR
Latvia	812 063	847 399
Total	812 063	847 399

(2) Cost of sales

	2020.09.30	2019.09.30
	EUR	EUR
labor and social payments	187 821	163 580
depreciation	77 109	68 332
transport	9 020	11 120
residential services ( electricity, water )	150 609	194 194
personnel training	0	106
telecommunication service	631	651
other costs tied to commercial operations	143 481	104 546
insurance (buildings)	3 705	3 664
land rent to LPA	3 467	3 653
depreciation of license	5	5
real estate tax (buildings, land )	16 366	8 179
cash turnover expenses	185	557
Total	592 399	558 587

(3)	Costs of administration	2020.09.30	2019.09.30
		EUR	EUR
	labor and social payments	41 477	60 968
	telecommunication service	631	650
	office supplies	101	415
	transport expenses for administrative needs	9 020	11 120
	representative expenses,personal cost	1 129	2 144
	legal assistance or raid	3 450	3 294
	NASDAQ RIGA annual fee	5 958	4 450
	business travel expenses	0	1 179
	Total	61 766	84 220

Other revenues from commercial

(4) operation

	2020.09.30 EUR	2019.09.30 EUR
fines other revenues	0 1 532	518 4 003
Total	1 532	4 521

Other costs of commercial

(5) operations

	2020.09.30	2019.09.30
	EUR	EUR
allowances and bonuses	2 847	2 711
fines	0	42
other costs	0	500
Total	2 847	3 253
expenses	2020.09.30	2019.09.30
	EUR	EUR
credit interests	98 686	96 346
Līzinga interest	1 647	1 111