Akciju sabiedriba "VEF"

Annual / Quarterly Financial Statement • May 27, 2016

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, 2016

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, 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
Name of the holder of shares And share capital (% ) 2 :	As on march 31. 2016 ;
	*VEF KOMUNIKĀCIJU SERVISS SIA"	45.52 % ;
	* Laila Līduma	6.31 % ;
	* Tamāra Kampāne	10 16 % ;
	* Gints Feņuks	24.50 % ;
	*Other shareholders	13.51 % .
	Chairman of the Board of the Company:
Chief executive officer:	GINTS FEŅUKS
	TAMĀRA KAMPĀNE
Members of the Board:	MĀRTIŅŠ CAUNA
	MODRIS ZOMMERS
	ANDRIS DENIŅŠ
Members of the Supervisory Council:	INTS KALNIŅŠ
	GUNTIS LIPIŅŠ
	ARNIS ZEKUNDE
	01.01.2016. - 31.03.2016.
Period of account:	Aleksejs Ļitvinovs. Certificate Nbr.190
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 2016

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, 2016.

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
	31.03.2016	31.03.2015	31.12.2015
LONG-TERM INVESTMENTS
Intangible assets
Concessions,patents,licences	88	423	172
Total intangible assets	88	423	172
Fixed Assets
Land,buildings and other property	5 511 858	5 540 100	5 501 253
Equipment and machinery	0	0	0
Other fixed assets and inventory	24 444	58 781	29 905
Advance payments for fived assets	31 400	0	31 400
Total fixed assets	5 567 702	5 598 881	5 562 558
Total long-term investments	5 567 790	5 599 304	5 562 730
Current assets
Inventory
Goods for sale
Total inventory	0	0	0
Debtors
Customers and client debts	77 886	82 510	12 901
Other debtors	16 430	11 120	31 337
Future period	0	0	52 107
Future period expenses	2 092	1 874	1 806
Total debtors	96 408	95 504	98 151
Cash	84 629	99 169	83 634
Total Current assets	181 037	194 673	181785
TOTAL ASSETS	5 748 827	5 793 977	5 744 515

LIABILITIES
	EUR	EUR	EUR
	31.03.2016	31.03.2015	31.12.2015
Stockholder's Equity
Common stock	2 722 492	2 766 969	2 722 492
Long-term investments revaluation reserve	805 396	801 562	805 396
Other reserves	44 477	0	44 477
Total accumulation
Retained earnings from the previous years	-1 069 412	-1 104 359	-1 104 359
Retained earnings of the financial years	18 791	-2 230	34 947
Total stockholder's equity	2 521 744	2 461 942	2 502 953
PROVISIONS
Other provisions	13 056	12 401	13 056
Total provisions	13 056	12 401	13 056
LIABILITIES
Long-term liabilities
Borrowings from credit institutions	2 713 298	2 853 641	2 713 298
Prepayments from buyers	39 608	38 118	39 608
Other liabilities	24 824	43 021	24 823
Deferred tax liability	209 998	171 860	193 783
Total long-term liabilities	2 987 727	3 106 640	2 971 512
Current liabilities
Borrowings from credit institutions	105 257	105 257	140 343
Accounts payable	49 683	48 376	52 026
Taxes and social security payments	37 245	28 744	22 102
Other liabilities	8 597	10 445	10 331
Other borrowings	14 021	14 251	18 197
Prepayments from buyers	11 497	5 921	13 995
Total current liabilities	226 300	212 994	256 994
Total liabilities	3 214 027	3 319 634	3 228 506
TOTAL LIABILITIES&STOCKHOLDER'S	5 748 827	5 793 977	5 744 515
EQUITY

PROFIT AND LOSSES ACCOUNT FOR YEAR, WHICH ENDS ON MARCH 31.2016.

		EUR 31.03.2016 -	EUR 31.03.2015 -
1	2	4	4
Net turnover		323 486	285 807
Cost of goods sold	1	-225 063	-210 138
Gross profit		98 423	75 669
Selling expenses
Administrative expenses	2	-29 181	-25 812
Other income from operations	3	1 476	617
Other expenses from operations	4	-568	-716
Finansial services income	5	0	0
Finansial services expenses	6	-31 135	-34 368
Profit before taxes		39 015	15 390
Other taxes	7	-4 009	-5 458
Deferred tax		-16 215	-12 162
Net profit		18 791	-2 230

Earnings per share (EPS) on

31.03.2015 – 0 EUR

31.03.2016 -0.001 EUR

Chairman of the Board

Member of the Board T.Kampāne

G.Feņuks

CASH FLOW STATEMENT FOR YEAR THAT ENDS ON MARCH 31, 2016

		2016	2015	2015
		31.03.	31.03.	31.12.
		EUR	EUR	EUR
I.	CASH FLOW FROM OERATING ACTIVITIES
	Profit before outstanding items and taxes (+) Adjustments:	39 015	15 390	90 954
	fixed assets depreciation ( +)	20 458	28 116	99 763
	intangible assets depreciation (+)	84	84	335
	increase/decrease in provisions	0	0	655
	profit or losses from exchange rates fluctuation (+/-)	0	0	0
	finacial services income	31 135	34 368	124 246
	Profit or losses before adjustments from current assets and liabilities	90 692	77 958	315 863
	Adjustments:
	debtors : increase (-); decrease (+)	1753	14 956	-1 863
	inventory: increase (-); decrease (+)	0	0	0
	liabilities: increase (-); decrease (+) Gross cash provide by operating activities	8 430 100 875	48 020 140 934	12 882 326 882
	Real iestate tax paid	-4 009	0	-21 922
	Payments for financial	-31 135	-34 368	-124 246
	Net cash provided by operating activities before outstanding items:	65 731	106 566	180 714
	Cash flow from outstanding items (-/+)	0	0	0
	Net cash provided by operating activities :	65 731	106 566	18 714
	CASH FLOWS FROM INVESTING ACTIVITIES :
	Fixed assets purchase	-24 849	0	-31 400
II.	Interest received	0	0	0
	Net cash used in investing activities :	-24 849	0	-31 400
	CASH FLOWS FROM FINANCING ACTIVITIES:
		-35 086	-35 086	-140 343
III.	Expenses for borrowings repayment	-4 801	-4 706	-18 956
	Expenses on lease liabilities
	Net cash provided by financing activities :	-39 887	-39 792	-159 299
	Exchange rate fluctuation result :	0	0	0
IV.	Net cash flom	995	66 774	-9 985
	CASH AT BEGINNING OF YEAR	83 634	32 395	93 619
	CASH AT END OF YEAR	84 629	99 169	83 634

STATEMENT OF CHANGES IN EQUITY FOR YEAR THAT ENDS ON MARCH 31, 2016

	31.03.2016 EUR	31.03.2015 EUR	31.12.2015 EUR
Stockholder's eguity
Balance at the beginning of the financial year	2 722 492	2 766 969	2 766 969
Increase from
Decrease from			-44 477
Balance at the end of the financial year	2 722 492	2 766 969	2 722 492
Long-term investments revaluation reserve
Balance at the beginning of the financial year	805 396	801 562	801 562
Increase from			3 834
Decrease from
Balance at the end of the financial year	805 396	801 562	805 396
Accumulations
Balance at the beginning of the financial year	44 477	0	0
Increase from
Decrease from
Balance at the end of the financial year	44 477	0	0
Retained earnings
Balance at the beginning of the financial year	-1 069 412	-1 104 359	-1 104 359
Profit or losses of the financial year	18 791	-2 230	34 947
Dividendes
Included in accumulations
Balance at the end of the financial year	-1 050 621	-1 106 589	-1 069 412
Stockholder's eguity (total)
Balance at the beginning of the financial year	2 502 953	2 480 629	2 464 172
Balance at the end of the financial year	2 521 744	2 461 942	2 502 953

(1) Net turnover

Turnover consists of revenues that the Company gained in the first three months of 2016 from its core business-service provision without VAT

Type of commercial operations	2016.03.31	2015.03.31
	EUR	EUR
power supply, distribution and servicing	81 001	86 346
Rental income	159 525	133 822
utility services	82 960	65 639
Total	323 486	285 807

Distribution of net turnover by geographical markets

	2016.03.31	2015.03.31
Country	EUR	EUR
Latvia	323 486	285 807
Total	323 486	285 807

(2) Cost of sales

	2016.03.31	2015.03.31
	EUR	EUR
labor and social payments	39 628	36 881
depreciation	20 458	28 116
cash turnover expenses	90	98
transport	1 796	1 909
residential services (electricity, water)	128 541	112 923
personnel training	106	70
telecommunication service	352	294
other costs tied to commercial operations	30 795	26 953
intangible asset depreciation	84	84
insurance (buildings)	1 420	1 304
land rent to LPA	1 793	1 506
Total	225 063	210 138

(3)	Costs of administration	2016.03.31 EUR	2015.03.31 EUR
	labor and social payments	21 770	17 836
	telecommunication service	352	294
	office supplies	486	288
	transport expenses for administrative needs	1 795	1 909
	representative expenses 40%	7	8
	legal assistance or raid	2 991	1 031
	NASDAQ annual fee	1 780	4 446
	Total	29 181	25 812

Other revenues from commercial

(4) operation

	2016.03.31 EUR	2015.03.31 EUR
fines	257	617
other income	1 219	0
Total	1 476	491
Other costs of commercial operations
	2016.03.31 EUR	2015.03.31 EUR
60% of representative costs allowances and bonuses	13 343	15 339
fines	212	362
Total	568	716
Payments of interest and similar expenses	2016.03.31	2015.03.31
	EUR	EUR
credit interests	30 855	33 933
Interest to Swedbank Līzings	70	115
interest to SEB Līzings	210	320
Total	31 135	34 368
Other taxes	2016.03.31	2015.03.31
	EUR	EUR
real estate tax (buildings ,land)	4 009	5 458