Akciju sabiedriba "VEF"

Annual / Quarterly Financial Statement • May 30, 2018

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, 2018

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
Members of the Supervisory Council:	ERVINS KAMPANS
	EGILS ARAJS
	GUNTIS LIPIŅŠ
	LAILA LIDUMA
	01.01.2018. - 31.03.2018.
Period of account:
	GUNTA DARKEVICA. Certificate Nbr.165
Qualified auditor:

Report on the Management Board's responsibility to the non-audited financial statement of JSC "VEF" for the three months of 2018

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, 2018.

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
	31.03.2018	31.03.2017	31.12.2017
LONG-TERM INVESTMENTS
Intangible assets
Concessions,patents,licences	47	54	49
Total intangible assets	47	54	49
Fixed Assets
Land,buildings and other property	5 516 113	5 454 716	5 530 695
Other fixed assets and inventory	25 270	26 330	27 393
Total fixed assets	5 541383	5 481 046	5 558 088
Total long-term investments	5 541 430	5 481 100	5 558 137
Debtors
Customers and client debts	10 430	76 973	11 488
Other debtors	24 158	18 884	20 073
Future period	0	0	49 728
Future period expenses	4 694	5 430	5 318
Total debtors	39 282	101 287	86 607
Cash	278 193	195 425	212 060
Total Current assets	317 475	296 712	298 667
TOTAL ASSETS	5 858 905	5 777 812	5 856 804

LIABILITIES
	EUR	EUR	EUR
	31.03.2018	31.03.2017	31.12.2017
Stockholder's Equity
Common stock	2 722 492	2 722 492	2 722 492
Long-term investments revaluation reserve	665 655	673 744	665 655
Other reserves	44 477	44 477	44 477
Total accumulation
Retained earnings from the previous years	-318 072	-570 644	-570 644
Retained earnings of the financial years	30 847	53 054	252 572
Total stockholder's equity	3 145 399	2 923 153	3 114 552
LIABILITIES
Long-term liabilities
Borrowings from credit institutions	2 432 612	2 572 955	2 432 612
Prepayments from buyers	30 547	21 475	30 547
Total long-term liabilities	2 463 159	2 594 430	2 463 159
Current liabilities
Borrowings from credit institutions	105 257	105 257	140 343
Accounts payable	51 936	52 674	50 320
Taxes and social security payments	39 404	31 292	32 782
Other liabilities	12 553	7 555	9 234
Other borrowings	1 321	18 768	5 075
Accrued liabilities	24 986	15 701	24 986
Prepayments from buyers	14 890	28 982	16 353
Total current liabilities	250 347	260 229	279 093
Total liabilities	2 713 506	2 854 659	2 742 252
TOTAL LIABILITIES&STOCKHOLDER'S	5 858 905	5 777 812	5 856 804
EQUITY

PROFIT AND LOSSES ACCOUNT FOR YEAR, WHICH ENDS ON MARCH 31.2018.

		EUR 31.03.2018 -	EUR 31.03.2017 -
1	2	4	4
Net turnover		285 280	330 832
Cost of goods sold	1	-215 381	-233 559
Gross profit		69 899	97 273
Administrative expenses	2	-26 068	-24 342
Other income from operations	3	15 050	350
Other expenses from operations	4	-1 099	-391
Finansial services expenses	5	-26 935	-19 836
Profit before taxes		30 847	53 054
Other taxes	6	0	0
Net profit		30 847	53 054

Earnings per share (EPS) on

31.03.2018 – 0.02 EUR

31.03.2017 -0.03 EUR

Chairman of the Board

G.Feņuks

Member of the Board T.Kampāne

CASH FLOW STATEMENT FOR YEAR THAT ENDS ON MARCH 31, 2018

		2018 31.03.	2017 31.03.	2017 31.12.
		EUR	EUR	EUR
I.	CASH FLOW FROM OERATING ACTIVITIES
	Profit before outstanding items and taxes (+)	30 847	53 054	258 354
	Adjustments: fixed assets depreciation ( +)	16 706	20 577	70 739
	intangible assets depreciation (+)	2	2	7
	finacial services income	26 935	19 836	105 483
	Profit or losses before adjustments from current assets and liabilities Adjustments:	74 490	93 469	434 583
	debtors : increase (-); decrease (+)	47 325	46 259	60 939
	liabilities: increase (-); decrease (+)	10 093	-4 847	-12 204
	Gross cash provide by operating activities	131 908	134 881	483 318
	Payments for financial	-26 935	-19 836	-105 483
	Net cash provided by operating activities before outstanding items:	104 973	115 045	377 835
	Cash flow from outstanding items (-/+)		0
	Net cash provided by operating activities :	104 973	115 045	377 835
	CASH FLOWS FROM INVESTING ACTIVITIES :
	Fixed assets purchase	0	0	-127 205
II.	Net cash used in investing activities :	0	0	-127 205
	CASH FLOWS FROM FINANCING ACTIVITIES:
	Expenses for borrowings repayment	-35 086	-35 086	-140 343
	Expenses on lease liabilities	-3 754	-4 902	-18 595
III.	Net cash provided by financing activities :	-38 840	-39 988	-158 938
	Exchange rate fluctuation result :
	Net cash flom	66 133	75 057	91 692
IV.	CASH AT BEGINNING OF YEAR	212 060	120 368	120 368
	CASH AT END OF YEAR	278 193	195 425	212 060

STATEMENT OF CHANGES IN EQUITY FOR YEAR THAT ENDS ON MARCH 31, 2018

	31.03.2018 EUR	31.03.2017 EUR	31.12.2017 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	665 655	673 774	673 774
Increase from
Decrease from			-8 119
Balance at the end of the financial year	665 655	673 774	665 655
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	-318 072	-570 644	-570 644
Profit or losses of the financial year	30 847	53 054	252 572
Dividendes
Included in accumulations
Balance at the end of the financial year	-287 225	-517 590	-318 072
Stockholder's eguity (total)
Balance at the beginning of the financial year	3 114 552	2 870 099	2 870 099
Balance at the end of the financial year	3 145 399	2 923 153	3 114 552

(1) Net turnover

Turnover consists of revenues that the Company gained in the first three months of 2018 from its core business-service provision without VAT

Type of commercial operations	2018.03.31	2017.03.31
	EUR	EUR
power supply, distribution and servicing	86 059	79 892
Rental income	110 488	160 748
utility services	88 733	90 192
Total	285 280	330 832

Distribution of net turnover by geographical markets

	2018.03.31	2017.03.31
Country	EUR	EUR
Latvia	285 280	330 832
Total	285 280	330 832

(2) Cost of sales

	2018.03.31	2017.03.31
	EUR	EUR
labor and social payments	47 967	40 249
depreciation	16 707	20 577
cash turnover expenses	109	109
transport	1 484	3 546
residential services (electricity, water)	118 338	129 357
personnel training	53	25
telecommunication service	259	481
other costs tied to commercial operations	24 998	28 435
intangible asset depreciation	2	2
insurance (buildings)	1 239	1 263
real estate tax (buildings ,land)	2 432	7 722
land rent to LPA	1 793	1 793
Total	215 381	233 559

(3)	Costs of administration	2018.03.31	2017.03.31
		EUR	EUR
	labor and social payments	20 915	17 764
	telecommunication service	259	481
	office supplies	291	119
	transport expenses for administrative needs	1 484	3 135
	representative expenses 40%	0	12
	legal assistance or raid	1 339	1 051
	NASDAQ annual fee	1 780	1 780
	Total	26 068	24 342

Other revenues from commercial

(4) operation

	2018.03.31 EUR	2017.03.31 EUR
fines	130	329
other income	14 920	21
Total	15 050	350

Other costs of commercial

(5) operations

	2018.03.31	2017.03.31
	EUR	EUR
60% of representative costs	0	22
allowances and bonuses	363	349
donations	736	0
fines	0	20
Total	1 099	391

Payments of interest and similar

(6)	expenses	2018.03.31	2017.03.31
		EUR	EUR
	credit interests	26 913	19 700
	Interest to Swedbank Līzings	0	29
	interest to SEB Līzings	22	107
	Total	26 935	19 836