Akciju sabiedriba "VEF"

Quarterly Report • May 30, 2019

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, 2019

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

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
	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:
	*Power supply - distribution of power;
	*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
	ERVINS KAMPANS
Members of the Supervisory Council:	EGILS ARAJS
	GUNTIS LIPIŅŠ
	LAILA LIDUMA
	01.01.2019. - 31.03.2019.
Period of account:
	GUNTA DARKEVICA. Certificate Nbr.165
Qualified auditor:

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 2019

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, 2019.

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
	31.03.2019	31.03.2018	31.12.2018
LONG-TERM INVESTMENTS
Intangible assets
Concessions,patents,licences	39	47	42
Total intangible assets	39	47	42
Fixed Assets
Land,buildings and other property	5 457 779	5 516 113	5 472 362
Other fixed assets and inventory	86 331	25 270	93 719
Advance payments for fived assets	11 524
Total fixed assets	5 555 634	5 541 383	5 571 843
Long-term finansial investments
Investments in subsidiaries	3 000		3 000
Loans to subsidiaries	60 000		60 000
Long-term finansial investments, total	63 000		63 000
Non-current assets, total	5 618 673	5 541 430	5 634 885
Debtors
Customers and client debts	53 234	10 430	8 383
Other debtors	76 773	24 158	22 372
Future period	4 432	4 694	5 312
Future period expenses	36 107	0	38 793
Total debtors	170 546	39 282	74 860
Cash	260 331	278 193	343 338
Total Current assets	430 877	317 475	418 198
TOTAL ASSETS	6 040 550	5 858 905	6 053 083

LIABILITIES
	EUR	EUR	EUR
	31.03.2019	31.03.2018	31.12.2018
Stockholder's Equity
Common stock	2 722 492	2 722 492	2 722 492
Long-term investments revaluation reserve	657 470	665 655	657 470
Other reserves	44 477	44 477	44 477
Total accumulation
Retained earnings from the previous years	-81 389	-318 072	-318 072
Retained earnings of the financial years	35 196	30 847	236 683
Total stockholder's equity	3 378 246	3 145 399	3 343 050
LIABILITIES
Long-term liabilities
Borrowings from credit institutions	2 318 174	2 432 612	2 318 174
Prepayments from buyers	47 273	30 547	47 273
Other liabilities	57 117		57 117
Total long-term liabilities	2 422 564	2 463 159	2 422 564
Current liabilities
Borrowings from credit institutions	120 000	105 257	144 000
Accounts payable	37 679	51 936	45 778
Taxes and social security payments	25 458	39 404	20 992
Other liabilities	14 599	12 553	13 139
Other borrowings	9 728	1 321	13 445
Accrued liabilities	22 573	24 986	24 457
Prepayments from buyers	18 703	14 890	25 658
Total current liabilities	248 740	250 347	287 469
Total liabilities	2 671 304	2 713 506	2 710 033
TOTAL LIABILITIES&STOCKHOLDER'S	6 049 550	5 858 905	6 053 083
EQUITY

PROFIT AND LOSSES ACCOUNT FOR YEAR, WHICH ENDS ON MARCH 31.2019.

		EUR 31.03.2019 -	EUR 31.03.2018 -
1	2	4	4
Net turnover		305 349	285 280
Cost of goods sold	1	-209 284	-215 381
Gross profit		96 065	69 899
Administrative expenses	2	-28 746	-26 068
Other income from operations	3	329	15 050
Other expenses from operations	4	-387	- 1 099
Finansial services expenses	6	-32 065	-26 935
Profit before taxes		35 196	30 847
Other taxes	7	0	0
Net profit		35 196	30 847

Earnings per share (EPS) on

31.03.2018 – 0.01 EUR

31.03.2019 -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, 2019

		2019 31.03.	2018 31.03.	2018 31.12.
		EUR	EUR	EUR
I.	CASH FLOW FROM OERATING ACTIVITIES
	Profit before outstanding items and taxes (+)
	Adjustments:	35 196	30 847	236 683
	fixed assets depreciation ( +)	21 971	16 706	76 244
	intangible assets depreciation (+)	2	2	7
	finacial services income	32 065	26 935	112 374
	Profit or losses before adjustments from current assets and liabilities	89 234	74 490	425 308
	Adjustments:
	debtors : increase (-); decrease (+)	-95 686	47 325	-11 809
	liabilities: increase (-); decrease (+)	-16 773	10 093	99 856
	Gross cash provide by operating activities Payments for financial	-32 065	-26 935	-112 374
	Net cash provided by operating activities before outstanding items:
	Cash flow from outstanding items (-/+)
	Net cash provided by operating activities :	-55 290	104 973	400 981
	CASH FLOWS FROM INVESTING ACTIVITIES :
	Fixed assets purchase	0	0	-84 236
	Loans to subsidiaries			-60 000
	Interest in related companies			-3 000
II.
	Net cash used in investing activities :	0	0	-147 236
	CASH FLOWS FROM FINANCING ACTIVITIES:
	Payments for leased fixed assets	-3 717	-3 754	-11 686
	Expenses for borrowings repayment	-24 000	-35 086	-110 781
	Net cash provided by financing activities :	-27 717	-38 840	-122 467
	Net cash flom	-83 007	66 133	131 278
IV.	CASH AT BEGINNING OF YEAR
	CASH AT END OF YEAR	343 338	212 060	212 060
		260 331	278 193	343 338

STATEMENT OF CHANGES IN EQUITY FOR YEAR THAT ENDS ON MARCH 31, 2019

	31.03.2019 EUR	31.03.2018 EUR	31.12.2018 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	657 470	665 655	665 655
Increase from
Decrease from			-8 185
Balance at the end of the financial year	657 470	665 655	657 470
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	-81 389	-318 072	-318 072
Profit or losses of the financial year	35 196	30 847	236 683
Dividendes
Included in accumulations
Balance at the end of the financial year	-46 193	-287 225	-81 389
Stockholder's eguity (total)
Balance at the beginning of the financial year	3 343 050	3 114 552	3 114 552
Balance at the end of the financial year	3 378 246	3 145 399	3 343 050

(1) Net turnover

Turnover consists of revenues that the Company gained in the first three months of 2019 from its core business-service provision without VAT

Type of commercial operations	2019.03.31	2018.03.31
	EUR	EUR
power supply, distribution and servicing	41 247	86 059
Rental income	178 864	110 488
utility services	85 238	88 733
Total	305 349	285 280

Distribution of net turnover by geographical markets

	2019.03.31 2018.03.31
Country	EUR	EUR
Latvia	305 349	285 280
Total	305 349	285 280

(2) Cost of sales

	2019.03.31	2018.03.31
	EUR	EUR
labor and social payments	48 711	47 967
depreciation	21 971	16 707
cash turnover expenses	166	109
transport	3 709	1 484
residential services (electricity, water)	91 398	118 338
personnel training	0	53
telecommunication service	263	259
other costs tied to commercial operations	38 264	24 998
intangible asset depreciation	2	2
insurance (buildings)	1 087	1 793
real estate tax (buildings ,land)	1 887	2 432
land rent to LPA	1 826	1 792
Total	209 284	215 381

(3)	Costs of administration	2019.03.31	2018.03.31
		EUR	EUR
	labor and social payments	22 989	20 915
	telecommunication service	263	259
	office supplies	126	291
	transport expenses for administrative needs	3 709	1 484
	representative expenses	460	0
	legal assistance or raid	309	1 339
	NASDAQ annual fee	890	1 780
	Total	28 746	26 068

Other revenues from commercial

(4) operation

		2019.03.31 EUR	2018.03.31 EUR
	fines	327	130
	other income	2	14 920
	Total	329	15 050
(5)	Other costs of commercial operations
		2019.03.31	2018.03.31
		EUR	EUR
	allowances and bonuses	387	363
	donations	0	736
	Total	387	1 099
	Payments of interest and similar
(6)	expenses	2019.03.31	2018.03.31
		EUR	EUR
	credit interests	31 723	26 913
	interest to SEB Līzings	342	22
	Total	32 065	26 935