Delfin Group

Quarterly Report • Apr 29, 2016

SIA "ExpressCredit"

ANNUAL ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2015 AND Consolidated Annual accounts FOR THE YEAR ENDED 31 DECEMBER 2015

PREPARED IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STANDARDS AS ADOPTED BY EU Translation from Latvian

TABLE OF CONTENTS

Information on the Group	3 - 4
Statement of management's responsibility	5
Management report	6
Corporate governance statement	7
Profit or loss account	8
Comprehensive income statement	8
Balance sheet	9
Statement of changes in equity	10
Cash flow statement	11
Notes	12 - 34
Independent Auditors' report	35

1

Information on the Company

			Name of the Company
--	--	--	---------------------	--

Legal status of the Company

Number, place and date of registration

Operations as classified by NACE classification code system

Address

Names and addresses of shareholders (from 30.10.2013)

Names and positions of Board members

Names and positions of Council members

Financial year

Name and address of the auditor

ExpressCredit SIA

Limited liability company

40103252854 Commercial Registry Riga, 12 October 2009

NACE2 64.92 Other credit granting

Raunas street 44 k-1, Riga, LV-1039 Latvia

Lombards 24.lv, SIA (till 05.05.2015. Express Holdings, SIA) (51.00% - till 18.06.2015, 67.55% from 18.06.2015 till 23.12.2015, 65.86% from 23.12.2015), Raunas street 44k-1, Riga, Latvia

AE Consulting, SIA (24.50% till 18.06.2015, 32.45% - from 18.06.2015 - 23.12.2015, 31.64% - from 23.12.2015), Posma street 2, Riga, Latvia

Ebility, SIA (24.50% - till 18.06.2015), Slokas street 77 - 1A, Riga, Latvia

Private individuals (2.5% - from 23.12.2015)

Agris Evertovskis - Chairman of the Board Kristaps Bergmanis - Member of the Board Didzis Admidins - Member of the Board Edgars Bilinskis - Member of the Board (till 16.06.2015)

leva Judinska-Bandeniece - Chairperson of the Council Uldis Judinskis - Deputy Chairman of the Council Ramona Tiltina - Member of the Council

1 January - 31 December 2015

SIA Potapoviča un Andersone Certified Auditors' Company Licence Nr. 99 Üdens Street 12-45, Riga, LV-1007 Latvia

Responsible Certified Auditor Kristīne Potapoviča Certificate No. 99

Information on the Subsidiaries

Subsidiary

Date of acquisition of the subsidiary

Number, place and date of registration of the subsidiary Address of the subsidiary

Operations as classified by NACE classification code system of the subsidiary

Subsidiary

Date of acquisition of the subsidiary

Number, place and date of registration of the subsidiary Address of the subsidiary

Operations as classified by NACE classification code system of the subsidiary

Subsidiary

Date of acquisition of the subsidiary

Number, place and date of registration of the subsidiary Address of the subsidiary

Operations as classified by NACE classification code system of the subsidiary

Subsidiary

Date of acquisition of the subsidiary

Number, place and date of registration of the subsidiary Address of the subsidiary

Operations as classified by NACE classification code system of the subsidiary

SIA ExpressInkasso (parent company interest in subsidiary - 100%)

22.10.2010

40103211998; Riga, 27 January 2009

Raunas Street 44 k-1; Riga, LV 1039, Latvia

66.1 Financial support services except insurance and pension accrual

SIA Banknote (till 30.04.2015 - SIA Rīgas pilsētas lombards) (parent company interest in subsidiary -100%)

23.02.2015

40003040217, Riga, 06 December 1991

Raunas Street 44 k-1; Riga, LV 1039, Latvia (till 30.04.2015 - Kalēju street 18/20, Riga)

64.92 Other financing services

SIA EC Investments (parent company interest in subsidiary - 100%)

06.11.2015

40103944745, Riga, 06 November 2015

Raunas Street 44 k-1; Riga, LV 1039, Latvia

64.20 Activities of holding companies

SIA EC Finance (parent company interest in subsidiary - 100%)

01.12.2015

40103950614, Riga, 01 December 2015

Raunas Street 44 k-1; Riga, LV 1039, Latvia

64.20 Activities of holding companies

Statement of management's responsibility

The management of SIA "ExpressCredit" group is responsible for the consolidated financial statements.

Based on the information available to the Board of the parent company of the Group, the financial statements are prepared on the basis of the relevant primary documents and statements in accordance with International Financial Reporting Standards as adopted by the European Union and present a tue and fair view of the Group's assets, liabilities and financial position as at 31 December 2015 and its profit and cash flows for 2015.

The management of the parent company confirms that the accounting policies and management estimates have been applied consistently and appropriately. The management of the parent company confirms that he consolidated financial statements have been prepared on the principles of principles of principles of going concern.

The management of the parent company confirms that is responsible for maintaining proper accounting records and for monitoring, controlling and safeguarding the Group's assets. The management of the pareony is responsible for detecting and preventing errors, irrap adoctor rior nelle parin Colliberate data manipulation. The management of the parent company is responsible for ensuring that mallorial. "The The laws of the Republic of Latvia.

The management report presents fairly the Group's business development and operational performance.

Agris Evertovskis

Chairman of the Board

Riga, 29. April, 2016

Kustaps Bergmanis Member of the Board

Didzis Ādmīdiņš Member of the Board

Management report

Operations of the Group's parent company and Group during the reporting year have been successful. Total revenues of the Group's parent company and Group for the fiscal year increased respectively by 6.9 % and 10.7% and amounts to EUR 17.3 million for Group's parent company and EUR 18.2 million for the Group.

2015 income structure is as follows: regular lending against pledges (pledge secured loans and sale of pledged assets subsequent to loan repayment default) - 49% (2014: 46%), non-secured loans - 51% (2014: 54%) and other income - 1% (2014: 1%). As to the profitability of operational segments, then regular lending against pledges represents 73% of profit (2014: 75%), non-secured bans - 29% (2014: 33%), other income - 2% (2014: 8%).

Due to implementation of the chosen business strategy, the following financial ratios were achieved in 2015:

Position	EUR	Increase / (decrease) %
Net loan portfolio, the Group's parent company	6.2	5.1
Net loan portfolio, the Group	6.5	3.2
Assets, the Group's parent company	11.2	3.7
Assets, Group	10.7	2.1
Net profit, the Group's parent company	1.3	4.8
Net profit, Group	1.5	7.9

During the 2015, on 12 February 2015 the Parent company and the Riga City Council has signed a contract on purchase of 569 148 (100%) shares of SIA "Banknote" (till 30.04.2015 SIA "Rigas pilsētas lombards") which was auctioned by the former owner. The purchase price of 880 000 euro was fully paid on 18 February 2015. On 23 February 2015 the transaction was registered in the Companies' Register. During the year the regular lending against pledges operations of SIA "Banknote" were transferred to SIA "ExpressCredit".

In 2015 the parent company registered two new subsidiaries with 100% interest - SIA "EC Investments" and SIA "EC Finance". The subsidiaries were established with the aim to diversify the operations of the Group and enhance its development.

Branches

In the year 2015 the Group continued the work on development of the branch network, loan volume increase, and IT system development. As at 31 December 2015 the Group had 96 branches in 40 cities in Latvia (31.12.2014 -93 branches in 38 cities).

In 2015 SIA "ExpressCredit" changed operating brand name of branches from Lombards24.Iv to Banknote. Along with the re-branding, the company expanded the range of financial services offered as well as the accessibility of its services, thus creating an unmatched non-banking financial service provider in the Latvian market.

Risk management

The Group is not exposed to significant foreign exchange rate risk because basic transaction currency is euro. Significant amount of funding of the Group consist of fixed coupon rate bonds, so that the Group is not significantly exposed to variable interest rate risk. Accurate application of the prudent strategies chosen has allowed the Group to successfully manage its financial risks, particularly the liquidity and credit risk. The legal environment change and regulatory risks that may affect the interest charges in the segular lending against pledges and non-secured loans.

Post balance sheet events

There are no subsequent events since the last date of the reporting year, which would have a significant effect on the financial position of the Company as at 31 December 2015.

Future prospects

In 2016 the new regulations came in force that reduced the interest rates for the unsecured loans. In the segment of Group's operations the legislation has limited the maximum of interest and penalty charges at the level lower than previously. In 2016 the Group plans to strengthen its market leadership and improve the branch network. It is planned that the Group's portfolio will increase, but profit dynamics will be lower than 2015 results.

Distribution of the profit proposed by the Group

The Parent Company's board recommends the profit of 2015 to pay out in dividends, respecting the restrictions applied to debt securities emissions.

Agris Evertovskis Chairman of the Board

Riga, 29. April, 2016

Kristaps Bergmanis Member of the Board

Didzis Admidiņš Member of the Board

Corporate governance statement

The corporate governance report of SIA "ExpressCredit" for 2015 has been prepared in accordance with the Riga Stock Exchange Corporate Governance principles issued in 2005 and recommendations as to their implementation.

The corporate governance report has been prepared by the Board and reviewed by the Council of SIA "ExpressCredit".

The corporate governance principles have been tailored to match the needs of SIA "ExpressCredit" as closely as possible, and in 2015 SIA "ExpressCredit" complied with most of the principles. Having regard to the "comply or explain" principle, the report presents the information on the principles which have not been complied with or have been complied with partly by SIA "ExpressCredit" and the circumstances causing non-compliance in 2015.

The report will be submitted to AS NASDAQ OMX Riga (hereinafter - the Stock Exchange) concurrently with the audited financial statements SIA "ExpressCredit" for 2015 for publishing on the website of the Stock Exchange. http://www.baltic.omxnordicexchange.com/, and the of of SIA SIA of , ExpressCredit" http://www.lombards24.lv/lat/investoriem/ in the section "For investors" in Latvian and English.

Agris Evertovskis Kristaps Bergmanis Chairman of the Board Member of the Board

Didzis Admidinš Member of the Board

Riga, 29. April, 2016

Profit or loss account for the year ended 31 December 2015

	Notes	Parent company	Group	Parent company	Group
		2015 EUR	2015 EUR	2014 EUR	2014 EUR
Net sales	1	7 691 132	8 124 967	7 650 397	7 650 686
Cost of sales	2	(5 629 077)	(6 040 951)	(5 596 572)	(5 596 572)
Interest income and similar income	3	9 547 347	9 974 805	8 463 985	8 640 133
Interest expenses and similar expenses	4	(1 161 072)	(1 161 962)	(1 175 458)	(1 216 106)
Gross profit		10 448 330	10 896 859	9 342 352	9 478 141
Selling expenses	5	(5 163 687)	(5 326 334)	(4 812 824)	(4 880 420)
Administrative expenses	6	(2 663 375)	(2 738 289)	(1 877 951)	(1 883 023)
Other operating income	7	49 816	60 588	56 328	108 456
Other operating expenses	8	(1 118 598)	(1 185 869)	(1 225 712)	(1 226 186)
Profit before taxes		1 552 486	1 706 955	1 482 193	1 596 968
Corporate income tax for the
reporting year	9	(206 856)	(220 676)	(263 264)	(286 038)
Deferred tax	9	26 185	26 185	90 633	90 633
Current year's profit		1 371 815	1 512 464	1 309 562	1 401 563
Earnings per share		3.21	3.54	3.07	3.28
Comprehensive income statement for 2015
		2015 EUR	2015 EUR	2014 EUR	2014 EUR
Current year's profit		1 371 815	1 512 464	1 309 562	1 401 F62

Notes on pages from 12 to 34 are integral part of these financial statements.

Other comprehensive income Total comprehensive income

Agris Evertovskis Chairman of the Board

Riga, 29. April, 2016

1 371 815

1 512 464

1 512 464

Kristaps Bergmanis Member of the Board

Didzis Ādmīdiņš Member of the Board

1 401 563

1 401 563

1 309 562

1 309 562

Balance sheet as at 31 December 2015		Parent company	Group	Parent company	Group
	Notes	31.12.2015.	31.12.2015.	31.12.2014.	31.12.2014.
Assets		EUR	EUR	EUR	EUR
Long term investments
Fixed assets and intangible assets	10	516 180	643 796	393 949	393 949
Loans and receivables	15	545 068	545 068	462 610	462 610
Loans to shareholders and
management	12	875 267	875 267	1 295 066	1 295 066
Participating interest in subsidiaries	11	888 828		2 846
Deferred tax asset	13	143 605	143 605	117 420	117 420
Total long-term investments:		2 968 948	2 207 736	2 271 891	2 269 045
Current assets
Finished goods and goods for sale	14	1 138 410	1 138 410
Loans and receivables	15	6 126 947	6 455 956	1 345 338	1 345 338
Receivables from affiliated				5 401 363	5 829 700
companies	16	435 490	105 855	484 492
Other debtors	17	102 075	297 436	80 536	208 873 80 676
Deferred expenses	18	33 192	35 163	27 762	30 089
Cash and bank	19	439 271	493 591	1 197 128	1 197 718
Total current assets:		8 275 385	8 526 411	8 536 619	8 692 394
Total assets		11 244 333	10 734 147	10 808 510	10 961 439
Liabilities Shareholders' funds:
Share capital	20	426 861	426 861	426 861	426 861
Prior years' retained earnings		279 540	387 704	279 540	295 703
Current year's profit		1 371 815	1 512 464	1 309 562	1 401 563
Total shareholders' funds:		2 078 216	2 327 029	2 015 963	2 124 127
Creditors:
Long-term creditors:
Bonds issued	21	5 489 648	5 489 648	6 471 466	6 471 466
Other borrowings	22	666 741	666 741	596 676	596 676
Total long-term creditors:		6 156 389	6 156 389	7 068 142	7 068 142
Short-term creditors:
Bonds issued	21	1 016 271	1 016 271	992 436	992 436
Other borrowings	22	384 846	384 846	30 341	30 341
Accounts payable to affiliated
companies	23	772 709	18 985
Trade creditors and accrued
liabilities	24	675 450	681 271	433 355	454 441
Taxes and social insurance	25	160 452	149 356	268 273	291 952
Total short-term creditors:		3 009 728	2 250 729	1 724 405	1 769 170
Total liabilities and shareholders'
tunds		11 244 333	10 734 147	10 808 510	10 961 439

Notes on pages from 12 to 34 are integral part of these financial statements.

Agris Evertovskis Chairman of the Board

Bristaps Bergmanis Member of the Board

Didzis Ādmīdinīš
Member of the Board

Riga, 29. April, 2016

9

Statement of changes in equity of the Parent Company's for the year ended 31 December 2015

	Share capital	Prior years' retained	Current year's profit	Total
	EUR	earnings EUR	EUR	EUR
As at 31 December 2013	426 862	1 009 259	370 280	1 806 401
Dividends paid		(1 100 000)		(1 100 000)
Profit transfer		370 280	(370 280)
Denomination of the share capital	(1)	1
Profit for the year			1 309 562	1 309 562
As at 31 December 2014	426 861	279 540	1 309 562	2 015 963
Dividends paid		(1 309 562)		(1 309 562)
Profit transfer		1 309 562	(1 309 562)
Profit for the year			1 371 815	1 371 815
As at 31 December 2015	426 861	279 540	1 371 815	2 078 216

Statement of changes in equity of the Group for the year ended 31 December 2015

	Share capital	Prior years' retained	Current year's profit	Total
	EUR	earnings EUR	EUR	EUR
As at 31 December 2013	426 862	1 016 585	379 117	1 822 564
Dividends paid		(1 100 000)		(1 100 000)
Profit transfer		379 117	(379 117)
Denomination of the share capital	(1)	1
Profit for the year			1 401 563	1 401 563
As at 31 December 2014	426 861	295 703	1 401 563	2 124 127
Dividends paid		(1 309 562)		(1 309 562)
Profit transfer		1 401 563	(1 401 563)
Profit for the year			1 512 464	1 512 464
As at 31 December 2015	426 861	387 704	1 512 464	2 327 029

Notes on pages from 12 to 34 are integral part of these financial statements.

ExpressCredit SIA ANNUAL ACCOUNTS AND CONSOLIDATED ANNUAL ACCOUNTS for the year ended 31 December 2015 (TRANSLATION FROM LATVIAN)

Cash flow statement for the year ended 31 December 2015

	Parent	Group	Parent	Group
	company		company
	2015	2015	2014	2014
	EUR	EUR	EUR	EUR
Cash flow from operating activities
Profit before extraordinary items and taxes	1 552 486	1 706 955	1 482 193	1 596 968
Adjustments for:
a) fixed assets depreciation	237 959	245 730	249 346	249 346
b) accruals and provisions (except for
provisions for bad debts)	238 706	238 706	82 313	82 313
c) write-off of provisions
d) cessation results	982 449		1 044 659
e) interest income	(8 853 994)	(9 272 220)	(8 463 885)	(8 640 133)
f) interest and similar expense	1 118 598	1 165 893	1 175 458	1 216 106
g)( profit)/ loss on fixed assets disposal	(961)	35 811	(15 723)	(15 723)
h) other adjustments	24 867	24 867	13 441	13 441
Loss before adjustments of working
capital and short-term liabilities	(4 699 890)	(5 854 258)	(4 432 198)	(5 497 682)
Adjustments for:
a) (increase)/ decrease in consumer
loans issued (core business) and other
debtors	(1 436 010)	11 753	(1 541 030)	(575 657)
b) stock increase	(401 626)	(235 253)	(381 806)	(381 806)
c) trade creditors' (decrease)/ increase	144 098	83 607	(105 749)	(87 205)
Gross cash flow from operating activities	(6 393 428)	(5 994 151)	(6 460 783)	(6 542 350)
Corporate income tax payments	(349 888)	(394 407)	(247 084)	(249 243)
Interest income	8 950 345	9 368 570	8 324 699	8 500 946
Interest paid*	(1 101 448)	(1 148 743)	(1 197 559)	(1 238 207)
Net cash flow from operating activities	1 105 581	1 831 269	419 273	471 146
Cash flow from investing activities
Acquisition of affiliated or associated
companies shares or parts	(886 000)	(849 233)	(109 720)	(109 720)
Acquisition of fixed assets and intangibles Proceeds from sales of fixed assets and	(249 510)	(267 655)
	10 631	10 631	54 656	54 656
intangibles Loans issued/repaid (other than core
business of the Company) (net)	196 470	278 599	704 714	945 706
Net cash flow from investing activities	(928 409)	(827 658)	649 650	890 642
Cash flow from financing activities
Loans received and bonds issued (net)	3 884 400	3 884 400	4 340 000	4 340 000
Redemption of bonds	(1 000 000)	(1 000 000)	(1 000 000)	(1 000 000)
Loans repaid	(2 450 019)	(3 222 728)	(2 773 743)	(3 136 154)
Finance lease payments	(59 848)	(59 848)	(58 805)	(58 805)
Dividends paid	(1 309 562)	(1 309 562)	(1 100 000)	(1 100 000)
Net cash flow from financing activities	(935 029)	(1 707 738)	(592 548)	(954 959)
				406 829
Net cash flow of the reporting year	(757 857)	(704 127)	476 375
Cash and cash equivalents at the	1 197 128	1 197 718	720 753	790 889
beginning of the reporting year
Cash and cash equivalents at the end of
reporting year	439 271	493 591	1 197 128	1 197 718

* Interest costs are included in the cash flow in coordination with the profit and loss account classification thus providing a more precise reflection of operative figures have been accordingly reclassified.

Notes on pages from 12 to 34 are integral part of these financial statements.

Notes

Accounting policies

Basis of preparation (a)

These financial statements have been prepared based on the accounting policies and measurement principles as set out below.

These financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union (EU). The financial statements are prepared based on historic cost method. In cases when reclassification not affecting prior year profit and equity is made, the relevant explanations are provided in the financial statements.

The preparation of financial statements in accordance with IFRS requires the use of significant estimates and assumptions that affect the reported amounts of assets and liabilities, as well as the information on contingent assets and liabilities at the balance sheet date and the revenues and costs for the reporting period. Although these estimates are based on the information available to the management regarding the current events and actions, the actual results may differ from the estimates used. Critical assumptions and judgements are described in the relevant sections of the financial statements.

The following new and amended IFRS and interpretations come into force in 2015, but do not apply to the Company's operations and have no impact on these financial statements:

Amendments to IAS 19 "Employee benefits plans" regarding defined benefit plans (effective for annual periods beginning on or after 1 July 2014, endorsed by EU for annual periods beginning on or after 1 February 2015).

Annual improvements 2012 (effective for annual periods beginning on or after 1 July 2014, by EU for annual periods beginning on or after 1 February 2015). These amendments include changes that affect 6 standards:

· IFRS 2 "Share-based payment"

· IFRS 3 "Business Combinations"

· IFRS 8 "Operating segments"

· IAS 16 "Property, plant and equipment" and IAS 38 "Intangible assets'

· IAS 24 "Related party disclosures"

Annual improvements 2013 (effective for annual periods beginning on or after 1 July 2014, endorsed by EU for annual periods beginning on or after 1 January 2015). The amendments include changes that affect 3 standards:

· IFRS 3 "Business combinations" · IFRS 13 "Fair value measurement" and

· IAS 40 "Investment property"

A number of new standards and interpretations have been published and come into force on financial periods beginning on or after 1 January 2016, and do not relate to the Company's operations or are not endorsed by the European Union:

IFRS 14 "Regulatory deferral accounts" (effective for annual periods beginning on or after 1 January 2016, not yet endorsed in the EU)

Amendment to IFRS 11 "Joint arrangements" on acquisition of an interest in a joint operation (effective for annual periods beginning on or after 1 January 2016, not yet endorsed in the EU)

Amendments to IAS 16 "Property, plant and equipment" and IAS 41 "Agriculture" regarding bearer plants (effective for annual periods beginning on or after 1 January 2016, not yet endorsed in the EU)

Amendment to IAS 16 "Property, plant and IAS 38 "Intangible assets" on depreciation and amortisation (effective for annual periods beginning on or after 1 January 2016, not yet endorsed in the EU)

Amendments to IAS 27 "Separate financial statements" on the equity method (effective for annual periods beginning on or after 1 January 2016, not yet endorsed in the EU)

Amendments to IFRS 10 "Consolidated financial statements in associates and joint ventures" (effective for annual periods beginning on or after 1 January 2016, not yet endorsed in the EU)

Amendments to IAS 1 "Presentation of financial statements" regarding disclosure initiative effective for annual periods beginning on or after 1 January 2016, not yet endorsed in the EU)

Annual improvements 2014 (effective for annual periods beginning on or after 1 January 2016, not yet endorsed in the EU). The amendments include changes that affect 4 standards:

· IFRS 5 "Non-current assets held for sale and discontinued operations"

· IFRS 7 "Financial instruments: Disclosures" with consequential amendments to IFRS 1

· IAS 19 "Employee benefits"

· IAS 34 "Interim financial reporting"

IFRS 15 "Revenue from contracts with customers" (effective for annual periods beginning on or after 1 January 2018, not yet endorsed in the EU)

IFRS 9 "Financial instruments" (effective for annual periods beginning on or after 1 January 2018, not yet endorsed in the EU)

There are no other new or revised standards or interpretations that would be expected to have a material impact on the Company.

Notes (continued) Accounting policies (continued)

(b) Accounting principles applied

• The items in the financial statements have been measured based on the following accounting principles:
  • a) It is assumed that the company will continue as a going concern;
  • b) The measurement methods applied in the previous reporting year have been used;
  • c) The measurement of the items has been performed prudently meeting the following criteria:
    • Only profits accruing up to the balance sheet date have been included in the report;
      • All possible contingencies and losses arising year or the previous year have been recognised, even if they became known in the period between the balance sheet date and the issuance of the annual report;
      • All impairment and depreciation charges have been calculated and recognised irrespectively of whether the company has operated profitably or not during the reporting year;
  • d) All income and expenses relating to the accounting year irrespective of the payments made or the dates of receipt or payment of invoices have been recognised. Revenues are matched with expenses in the reporting year.
  • e) Assets and liabilities are presented at their gross amounts;
  • f) The opening balances of the reporting period reconcile with the closing balances of the previous reporting period;
  • All items which may materially affect the assessment or decision-making of the financial statements are ರಿ) presented, immaterial items have been aggregated and their breakdown is presented in the Notes;
  • h) Business transactions are presented based on their economic substance rather than their legal form.

Asset and liability recognition is performed on historical cost basis. All financial assets and liabilities are classified as held to maturity or loans and receivables.

Consolidation principles (c)

The consolidated financial statements have been prepared under the cost method. The consolidation are the Group's parent company and the subsidiaries in which the Group's parent company holds, directly or indirectly, more than a half of the voting rights, or the right to control their financial and operating policies is acquired otherwise. Where the Group owns more than a half of the share capital of another company without controlling the company, the respective company is not consolidated. The subsidiaries of the Group are consolidated from the Group has taken over control, and the consolidation is terminated when the control cease to exist. Where the date of the share purchase agreement or the date of the decision of shareholders on making further investments is fundamentally different from the date of on which share ownership changes or the registration date as recorded in the Register) of Enterprises, the date of agreement shall be considered the date of the share purchase or the date of the investment, unless the agreement provides otherwise. The Group's all inter-company transactions and balances and unrealised profit on transactions between group companies are eliminated losses are eliminated as well, except for the expenses are not recoverable. Where necessary, the accounting and measurement methods applied by the Group's subsidiaries have been changed to bring them in compliance with the Group's accounting and measurement methods.

In these statements the minority interest in the Group's consolidated subsidiaries and their income statement have been presented separately.

(d) Recognition of revenue and expenses

Net sales

Net revenue represents the total value of goods sold and services provided during the year net of value added tax.

Interest income

The Company presents interest income in the Profit and loss account prior to calculation of gross profit, as this income is related to the basic activities of the Company - charging interest for loans issued in return to pledge held as security or loans issued on other conditions. Interest income is recognised using accruals principle. Interest income is not recognised from the moment the recoverability of principal is considered doubtful. Penalty interest is recognised on a cash basis.

Other income

Other income is recognised based on accruals principle.

Penalties and similar income

Of collection exists, is recognised based on cash principle.

Expenses

Expenses are recognised based on accruals principle in the period of the moment of payment. Expenses related to financing of loans is recognised in the period of liability origination and included in the profit and similar expenses".

(e) Foreign currency translation

(e1) Functional and presentation currency

Items included in the financial statements are measured using the primary economic environment in which the entity operates (the finctional currency). The financial statement items are denominated in euro (EUR), which is the Company's functional and presentation currency.

(e2) Transactions and balances

All transactions in foreign currencies are translated into the exchange rates at the date of the respective transaction. Foreign exchange gains and losses resulting from the settlement of such translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement of the respective period. At the balance sheet date the rates set by the Bank of Latvia were:

	31.12.2015	31.12.2014
	EUR	EUR
1 USD	1.08870	1.21410

Notes (continued) Accounting policies (continued)

Financial instruments - key measurement terms (f) =

Fair value is the amount for which an asset could be exchanged or a liability settled between knowledgeable, willing parties in an arm's length transaction. Fair values of financial assets or liabilities, including derivative financial instruments in active markets are based on quoted market prices. If the market for a financial asset or liability is not active (and for unlisted securities) the Group establishes fair value by using valuation techniques. These include the use of tiscounted cash flow analysis, option pricing models and recent comparative transactions as appropriate and may require the application of management and estimates. Where, in the opinion of the Management, the fair values of financial assets and liabilities differ materially from their book values are separately disclosed in the notes to the accounts.

Transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal instrument. An incremental cost is one that would not have been incurred if the transaction costs include fees and commissions paid to agents (including employees acting agents), advisors, brokers and dealers, levies by regulatory agencies and securities exchanges, and transfer taxes and duties. Transaction costs do not include debt premiums or discounts, financing costs or internal administrative or holding costs.

Amortised cost is the amount at which instrument was recognised at initial recognition less any principal recayments plus accued interest and for financial assets less any write-down for incurred interest includes amorisation of transaction costs deferred at initial recognition or discount to maturity amount using the effective interest method. Accrued interest income and acrued including both accrued coupon and amortised discount or premium (including fees deferred at origination, if any are not presented separately and are included in the carrying values of related tiems on the balance shee.

The effective interest method of calculating the amortised cost of a financial liability and of allocating the interest income or interest expense over the relevant period. The rate that exacty discounts estimated future cash payments or receipts through the of the financial instrument or, when appropriate, a shorter period to the net carrying amount of the financial asset or financial liability. When calculating the effective interest rate the Group estimates cash flows considering all contractual terms of the financial instrument options) but does not consider future credit loses. The calculation includes all fees and points paid or received between parties to the contract that are an integral part of transaction costs and all other premiums or discounts.

Offsetting of financial assets and liabilities (q)

Financial assets and liabilities are offset and ne reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realize the liability simultaneously.

Intangible assets and fixed assets (h)

All intangible assets and fixed assets are intally measured at cost. Intangible assets are recorded at historic cost net of depreciation and permanent diminution is calculated on a straight-ine basis to write down each assel to its estimated residual value over its estimated useful life as follows:

vears

Buildings	20
Constructions	5
Intangibles	3 - 5
Other fixed assets	3 - 5
Low value inventory (worth over 71 EUR)	ന

The residual values, remaining useful lives and methods of depreciation are reviewed adjusted annually. Fixed asset and intangibles recognition is terminated in case of its liquidation or when no future benefits are expected in connection with the utilisation of the respective asset. Any profit or loss connected with the termination of recognition (calculated as difference between the disposal gains and net book value as at the moment of dereognition), is recognised in the profit or loss account in the period when derecognition occurs. Leasehold improvements are written down on a straight-line basis over the esimated useful life of the leasehold improvement and the term of the lease. Current repairs and marged to profit and loss account in the period when the respective costs are incurred.

Goodwill arises on the acquisition of subsidiaries and represents the excess of the consideration transferred over the net fair value of share of equity acquired. The recognised goodwill is reassessed at least on an annual basis to make sure no permanent diminution in value has occurred. In case such diminution in value is identified, the diminution in value is recognised in the income statement of the respective year.

Investments in the associated companies

In the financial statements the investments in associated companies are carried at equity method. Under this method the value of the investment at the balance sheet date comprises the value of the associated company corresponding to the share of investment and the book value of the positive goodwill arising at the acquisition of the investment.

At the year-end the amount of the reported item is increased by reference to the Company's share in the profit or loss of the associated company during the year (in the post-acquisition period), or other changes in equity, as well as by the reduction of the goodwill arising at acquisition to its recoverable amount. Unrealsed profit on inter-company transactions is presented in the year following the reporting year in which the shareholders adopt a decision on profit distribution.

Notes (continued) Accounting policies (continued)

Impairment of assets (i)

Intangible assets which are not put into operation or which do not have a useful life are not amortised; their value is reviewed annually. The value of the assets subject to depreciation is reviewed whenever any events or circumstances support that their carrying value may not be recoverable. Impairment losses are recognised in the difference between the carying value of the asset and its recoverable amount is the higher of the respective asset's fair value less the costs to sell and the value in use. In order to determinent, assets are grouped based on the smallest group of assets that independently generates cash flow (cash generating units).

(k) Segments

A geographical segment provices within a particular economic environment that is subject to other economic environments characterized by different risks and benefits. A business segment is a share of assets and operations, products and services that are subject to other business segments of different risks and benefits.

(1) Inventories

Inventories are stated at the lower of cost or measured using the weighted FIFO method. The Company assesses at each balance sheet date whether there is objective evidence that inventories are impaired and makes provisions for slowmoving or damaged inventories Inventories loss is recognised in the period such loss is identified, writing off the relevant inventory values to the period profit and loss account.

(m) Seized assets

Collateral is repossessed following the forecloure on loans that are in default. Seized assets are measured at the lower of cost or net realisable value and reported within "Inventories",

(n) Trade and other receivables

Accounts receivable comprise loans and other debtors, advances and deposits) that are non-derivative financial assets with fixed or determinable payments. Loans are carried at amortised cost is defined as the fair value of cash consideration given to originate those loans. All bans and recognised when cash is advanced to borrowers and dereognised on repayments. The Company has granted constomers throughout its market area. The economic condition of the market area may have an impact on the borrowers' ability to repay their debts. Restructured to be past due unless the loan is past due according to the renegotiated terms.

From October 2015 SIA "ExpressCredit" has started issuance of pledges in the form of golden and siver articles) with new lending conditions, that assume 10% case of ban default and subsequent sale of the pledge, i.e., the revenues received by SIA "ExpressCredit" from the sale of the VAT portion. The pledges are made available for sale after 30 days of default, however, they continue to hold the status of the loan recipient has the rights to buy out the pledge before the sale. In the financial statements these pledges are classified as loans issued. In case a surplus originates upon a sale of the pledge and the related costs (loan issued, internediary and holding commissions), the surplus is recognised as the liability of the company to the loan its . The lability expires, if the loan recipient does not claim the 10 year term as defined in Article 1895 of the Civil Code. If the loan recipient has not claimed the surplus within the legally defined time limits, SA "ExpressCredit" recognises the income is outside VAT legislation and is not VAT taxable.

The Company assesses at each balance sheet date whether there is objective evidence that loans are impaired. If any such evidence exists, the amount of the allowances for loan inpaiment is assessed as the difference between the carrying amount and the recoverable amount, being the present value of expected cash flows including amounts recoverable from collateral discounted at the original effective interest rate. The assessment of the evidence for impairment and the amount of allowances for impairment or its reversal requires the application of management's judgements judgements and estimates consider relevant factors including but not limited to, the identification of non-performing loans (loan repayment schedule compliance), the estimated value of collateral (if taken) as well as other relevant facting loan and recoverability and collateral values. These judgements and estimates are reviewed periodically and as adjustments become necessary, they are reported in which they become known. The Management of the Company have made their best estimates of losses based on objective evidence of impairment and believe those estimates presented in the financial statements are reasonable in light of available information.

When loans cannot be recovered they are written off and charged against allowances for loan impairment losses. They are not written off until all the necessary legal procedures have been completed and the amount of the loss is finally determined.

The provision in the allowance account is reversed if the estimated recovery value exceeds the carrying amount.

Notes (continued) Accounting policies (continued)

Trade and other receivables (continued)

In accordance with the provisioning policy developed by the Company (for non-secured consumer loans with the term of repayment up to 2 years) provisions are made based on the payment delay analysis at following rates:

Days of delay	Provision made
O	0.3%
1-15	6%
16-30	18%
31-60	32%
61-90	42%
91-180	47%
181-360	67%
360-720	92%
721+	100%

Provisions for interest income debts is made in accordance with the policies set by the management of the Company. In accordance with the provisioning policy the Company calculates the provision required based on prior experience of loan volumes that turn out to be doubliful and the statistics of recoverability of such debts. The provision for interest accrued is made in accordance with the provisioning policies set by the management making sure that cash flows from interest receivable are excluded from cash flows used as the basis for rincipal recoverability testing.

The recoverability of other debtors, advances and deposits paid is valued on individual basis if there are any indications of net book value of the asset exceeding its recoverable amount.

Finance lease (0)

Where the property, plant and equipment are acquired under a finance lease arrangement and the Company takes over the related risks and rewards, the property, plant and equipment items are measured at the value at which they could be purchased for an immediate payment. Leasing interest is charged to the profit and loss in the period in which it arises.

(p) Operating leases

Company is a lessor

The type of lease in which the lessor retains a significant part of the risks and rewards pertaining to ownership, is classified as operating lease. Lease payments and prepayments for a lease (net of any financial incentives received from the lessor) are opofit and loss under a straight-line method over the lease term.

Taxes (q)

The corporate income tax expense is included in the financial statements calculations made in accordance with the requirements of Latvian tax legislation. Deferred tax is provided for using liability method on all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. The principal temporary offerences anse from depreciation of property, plant and equipment at different rates and tax losses carried forwards. Deferred tax assets are recognised only to the extent that recovery is probable.

(r) Provisions for unused annual leave

The amount of provision for unused annual leave is determined by multiplying the average daily pay of employees during the last 6 months by the number of accrued but unused annual leave days the end of the reporting year. The vacation provisions with paid out till the date of annual report preparation and treats them as CIT deductible in the reporting neriod.

(s) Borrowings

Intially borrowings are recognised at the proceeds received net of transaction costs incurred. In subsequent periods, borrowings are stated at amortised cost which is determined using the effective interest method. The proceeds reonively, ne of transaction costs and the redemption value of the borrowing is gradually recognized in the profit and loss account over the term of the borrowing.

(t) Cash and cash equivalents

For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, balances of current accounts with banks and short-term deposits with a maturity term of up to 90 days.

(u) Payment of dividends

Dividends due to the shareholders are recognized in the financial statements as a liability in the shareholders approve the disbursement of dividends.

Notes (continued)

Accounting policies (continued)

Financial risk management (v)

(v1) Financial risk factors

The activities of the Company expose it to different financial risks:

(u1.1) foreign currency risk;

(u1.2) credit risk;

(u1.3) operational risk:

(u1.4) market risk;

(u1.5) liquidity risk;

(u1.6) cash flow and interest rate risk.

The Company's overall risk management is focused on the uncertainty of financial markets and aims to reduce its adverse effects on the Company's financial indicators. The Finance Drector is responsible for risk management. The Finance Director identifies, assesses and seeks to find solutions to avoid financial risks acting in close cooperation with other structural units of the Combany.

(v1.1) Foreign exchange risk

The Company operates mainly in the local market and its exposure to foreign exchange risk is low. With the current income-expense structure additional monitoring procedures for currency risk monitoring are not beens and one hans is are used on the account that the overall currency risk has been assessed as low.

(v1.2) Credit risk

The Company has a credit risk concentrational specifics = issuance of loans against pledge, as well as issuance of non-secured loans that is connected with an increased risk of asset recoverability. The risk may result in short-term liquidity problems and issues related to timely coverage of short-term liabilities. The Company's policies are developed in order to ensure maximum control procedures in the process of loan issuance, timely identification of bad and adequate provisioning for potential loss.

(v1.3) Operational risk

Operational risk is a loss risk due to external factors namely (natural disasters, crimes, etc.) or internal ones (1T system crash, fraud, violation of laws or internal requlations, insufficient internal control). Operation of the Company carries a certain operational risk which can be managed using several methods to identify, analyse, report and reduce the operational risk. Also self-assessment of the operational risk is carried out as systematic approval of new products is provided to ensure the products and processes with the risk environment of the activity.

(v1.4) Market risk

The Company is exposed to market risks, basically related to the fluctuations of interest rates between the loans granted and funding received, as well as demand for the Company attempts to limit market risks, adequately planning the expected cash flows, diversifying the product range and fixing funding resource interest rates.

(v1.5)Liquidity risk

The Company complies with the prudence principle in the management of its liquidity risk and maintains sufficient funds. The management of the Company has an oversight responsibility of the iquidity reserves and make current forecasts based on anticipated cash flows. Most of the Company's liabilities are short-term liabilities. The management is of the Company will be able to secure sufficient liquidty by its operating activities, however, if required, the management of the Company is certain of financial support to be available from the owners of the Company.

(v1.6) Cash flow interest rate risk

As the Company has borrowings and finations, the Company's cash flows related to financing costs to some extent depend on the changes in market rates of interest payment related cash flows depend on the current market rates of interest. The risk of fluctuating interest rates is partly averted by the fact that a number of loans received have fixed interest rates set. Additional risk minimization measures are not taken because the available bank products do not provide an effective control of risks.

(v2) Accounting for derivative financial instruments

The Company does not actively use derivative in its operations. Derivative financial instruments are initially recognized at fair value on the date of the contract, and are thereafter measured at fair value at the . Derivative financial instruments are carried as assets if their fair value is positive. Any gains or losses arising due to the changes in the fair value of the derivative financial instrument are not classified hedges and are recognized directly in the profit and loss.

(v3) Fair value

The carrying value of financial assets and liabilities approximates their fair value. See also note (e)

Notes (continued)

Accounting policies (continued)

(V) Financial risk management (continued)

(v4) Management of the capital structure

In order to ensure the continuation of the Company's activities, while maximizing the return to stakeholders capital management, optimization of the debt and equity balance is performed. The Company's capital consists of bornwings from related persons, third party loans and loans from credit institutions and finals of bother on bother on bondownload personal retained earnings and share premium. At year-end the ratios were as follows:

	Parent company	Group	Parent	Group
	31 12.2015 EUR	31.12.2015 EUR	company 31.12.2014 EUR	31.12.2014 EUR
Loan and lease liabilities	7 557 506	7 557 506	8 090 919	8 090 919
Cash and bank	(439 271)	(493 591)	(1 197 128)	(1 197 718)
Net debts	7 118 235	7 063 915	6 893 791	6 893 201
Equity	2 078 216	2 327 029	2 015 963	2 124 127
Liabilities / equity ratio	3.64	3.25	4.01	3.81
Net liabilities / equity ratio	3.43	3.04	3.42	3.25

Significant assumptions and estimates (w)

The preparation of financial statements in accordance with International Financial Reporting Standards as adopted by the EU and Latvian law requires the management to rely on estimates and assumptional has aboped of the ED and Labilities and difbalance sheet assets and liabilities at the date of financial statements and experied and namilles and the reporting in the reporting in the reporting in the reporting in the period. Actual results may differ from these estimates.

The following judgements and key assumptions concerning the future are critical, and other causes of inaccuracies in the calculations as at the date of financial statements, with a significant risk of causing a material change in the balance sheet value of assets and liabilies within the next financial year:

• The Company review the useful lives of its fixed assets at the end of each reporting period. The management makes estimates and uses assumptions with respect to the useful lives of fixed assumptions may change and the calculations may therefore change.
• The Company review the value of its fixed assets and intangible assets whenever any events or circumstances support that the carrying value may not be recoverable. Impairment loss is recognised in the amount equalling the differn coal be carn ing value of the asset and its recoverable amount is the higher of an assets fair universes the costs to sell ynd the value in use. The Company is of the view that considering the anticipated volumes of services no material adjustments are to impairment are required the asset values.
• In measuring inventories the management relies on its experience, background information, and potential assumptions and possible future circumstances. In assessing the imparisment of the value of inventories consideration is given to the possibility to sell the item of inventories and the net realisable value.
• The Company's management, based on estimates, makes provisions for the impairment of the value of receivables. The Company's management is of the provisions for receivables presented in the financial statements accurately reflect the expected cash flows from these receivables and that these estimates have been mate based on the bootlation information.
• · The Company is composed with caution savings potential future payment obligations in cases where disputes the validity of such legal obligation, or there are legal disputes about the amount of such liabilities.

(x) Related parties

Related parties include the shareholders, members of the Board of the Company their close family members and companies in which the said persons have control or significant influence.

(y) Subsequent events

Post-period-end events that provide additional information about the Company's position at the balance sheet date (adjusting events) are reflected in the financial statements. Post-period-end events are disclosed in the note cause ander added and

(Z) Contingencies

Contingent liabilities are not recognised in the financial statements. They are disclosed unless the possibility of an outflow of resources embodying economic benefits is remote. A contingent asset is not recognised in the possiblity of all clisclosed when an inflow of economic benefits is probable.

(aa) Earnings per share

Earnings per share are calculated by dividing the net profit or loss for the year attributable to the shareholders with the weighted-average number of shares outstanding during the year.

Notes (continued)

(1) Net sales

Net revenue by type of revenue

	Parent company	Group	Parent company	Group
	2015 EUR	2015	2014 EUR	2014 EUR
		EUR
Income from sales of goods	5 472 927	5 503 519	5 366 826	5 366 826
Income from sales of gold scrap	1 947 151	2 350 149	1 999 664	1 999 664
Income from sales of vehicles Other income, loan and mortgage storage	64 014	64 014	90 977	90 977
commission	207 040	207 285	192 930	193 219*
	7 691 132	8 124 967	7 650 397	7 650 686

*In 2014 there has been made reclassification of revenue and expense, excluding the revenue from cession of receivables in the amount of EUR 337 173. This amount, net of debt acquisition costs, is included in net in "Other operating income".

Net revenue by geographical markets and type of operation

2015 EUR 5 610 314 18 763 Net book values of debtors debts sold	2015 EUR 6 020 600 18 808 1 543	2014 EUR 5 532 099 64 473	2014 EUR 5 532 099 64 473
7 691 132	8 124 967	7 650 397	7 650 686
		17 465	17 465
207 040	207 285	175 465	175 754*
1 947 151	2 350 149	1 999 664	1 999 664
		12 921	12 921
5 536 941	5 567 533	5 444 882	5 444 882

"In 2014 there has been made reclassification of revenue and expense, excluding the revenue from cession of receivables in the amount of EUR 285 045. This amount is deducted from revenue from futher cession of receivables and included in nei n "Other operating income".

(3) Interest income and similar income

	2015	2015	2014	2014
	EUR	EUR	EUR	EUR
Interest income on loans issued against pledge	2 033 954	2 096 533	1 530 638	1 530 638
Interest income on mortgage extension	1 457 401	1 582 134	1 230 789	1 230 789
Interest income on loans to the vehicle pledges	177 465	177 465	310 792	310 792
Interest income on mortgage loans	37 536	37 536	47 511	47 511
Interest income on unsecured loans	5 339 044	5 577 815	4 610 972	4 787 120
Interest income on loan extension	598 297	599 672	588 025	588 025
Accrued interest income	(96 350)	(96 350)	145 258	145 258
	9 547 347	9 974 805	8 463 985	8 640 133

EXPRESSCREDIT SIA Annual accounts and Consolidated annual accounts FOR THE YEAR ENDED 31 DECEMBER 2015 (TRANSLATION FROM LATVIAN)

Notes (continued)

(4) Interest expenses and similar expenses

	Parent	Group	Parent	Group
	company		company
	2015	2015	2014	2014
	EUR	EUR	EUR	EUR
Bonds' coupon expense	1 057 803	1 057 803	1 047 206	1 047 206
Interest expense on lease	5 051	5 051	4 802	4 802
Interest expense on other borrowings	97 694	98 493	122 744	163 392
Net loss on foreign exchange	524	615	706	706
	1 161 072	1 161 962	1 175 458	1 216 106

(5) Selling expenses

	Parent company	Group	Parent company	Group
	2015	2015	2014	2014
	EUR	EUR	EUR	EUR
Salary expenses	2 028 651	2 132 013	1 921 684	1 966 624
Social insurance	476 522	497 899	454 759	465 361
Provisions for unused annual leave and bonuses	35 154	35 154	5 487	5 487
Rental expense	807 882	862 600	808 336	811 966
Utilities expense	212 177	217 766	220 205	220 205
Non-deductible VAT	226 589	256 598	171 849	171 849
Communication expenses	57 867	60 903	73 633	73 633
Maintenance expenses	59 297	82 941	66 482	73 627
Depreciation of fixed assets	237 959	245 494	249 346	249 346
Security expenses	26 674	27 076	26 394	26 394
Goods and fixed assets write-off	227 132	250 987	148 475	148 475
Advertising	390 889	408 858	175 216	175 216
Business trip expenses	7 527	8778	8 688	8 688
Provisions for doubtful debtors	117 300	(55 903)	229 383	229 383
Transportation expenses	81 636	81 636	93 371	93 371
Renovation expenses	41 736	41 736	20 800	20 800
Other expenses	128 595	171 798	138 716	139 995
	5 163 687	5 326 334	4 812 824	4 880 420

Administrative expenses (6)

	2015	2015	2014	2014
	EUR	EUR	EUR	EUR
Salary expenses	1 854 083	1 868 545	1 141 932	1 141 932
Social insurance	338 100	343 628	267 033	267 033
Provisions for unused annual leave and bonuses	48 783	48 783	30 286	30 286
Office rent	55 544	55 554	46 378	46 378
Office expenses	39 552	44 476	34 198	37 939
Bank commission	29 062	30 988	32 059	32 204
Audit expense*	12 500	12 500	11 000	11 000
Communication expenses	17 509	17 573	19 567	19 567
State fees and duties, licence expense	34 354	64 666	42 342	42 342
Legal advice	29 542	32 428	103 345	103 345
Information database subscriptions, maintenance	156 968	162 129	106 041	106 041
Membership fees in professional organizations	26 084	26 084	19 186	19 186
Other administrative expenses	21 294	30 935	24 584	25 770
	2 663 375	2 738 289	1 877 951	1 883 023

* During the year the Company has not received any other services from the Auditor.

Notes (continued)

(7) Other operating income

	Parent company	Group	Parent company	Group
	2015	2015	2014	2014
	EUR	EUR	EUR	EUR
Income from the cession	4 320	4 320		52 128*
Other income	45 496	56 268	56 328	56 328
	49 816	60 588	56 328	108 456

* Reclassification of revenue and expense in 2014, see comments in Note 1 and Note 2.

(8)

	2015	2015	2014	2014
	EUR	EUR	EUR	EUR
Fines	1 608	1 754	17 834	18 082
Other expenses	56 848	57 215	27 633	27 859
Goods written-off above trade loss norm	59 362	59 362	90 436	90 436
Donations	32 000	35 000	45 150	45 150
Losses from cession	968 780	1 032 538	1 044 659	1 044 659
	1 118 598	1 185 869	1 225 712	1 226 186

(9) Corporate income tax for the reporting year

	2015	2015	2014	2014
	EUR	EUR	EUR	EUR
Deferred corporate income tax charge (see Note 13)	(26 185)	(26 185)	(90 633)	(90 633)
Corporate income tax charge for the current year	206 856	220 676	263 264	286 038
	180 671	194 491	172 631	195 405

Corporate income tax differs from the theoretically calculated tax amount:

Profit before taxation	1 552 486	1 706 955	1 482 193	1 596 968
Theoretically calculated tax at a tax rate of 15 %	232 873	256 043	222 329	239 545
Expenses not deductible for tax purposes	(25 002)	(31 802)	(11 320)	(5 762)
Donations	(27 200)	(29 750)	(38 378)	(38 378)
	180 671	194 491	172 631	195 405

Notes (continued)

(10)

	Concessions, patents, trademarks and similar rights	Land and buildings	Other fixed assets and inventory	Advances	Leasehold improvements	Total
	EUR	EUR	EUR	EUR	EUR	EUR
Cost
31.12.2014	17 084	1 423	698 084		286 642	1 003 233
Additions	17 749		265 924	46 858	39 329	369 860
Disposals	(931)	(1 423)	(58 315)			(60 669)
31.12.2015	33 902		905 693	46 858	325 971	1 312 424
Depreciation
31.12.2014	11 463	1 423	413 274		183 174	609 284
Charge for 2015	3 581		185 003		49 376	237 960
Disposals	(856)	(1 423)	(48 721)	-		(51 000)
31.12.2015	14 188		549 506	-	232 550	796 244
Net book value
31.12.2015	19 714		356 187	46 858	93 421	516 180
Net book value
31.12.2014	5 621		284 860		103 468	393 949

As at 31 December 2015 the residual value of the fixed assets acquired under the terms of financial lease was 179 293 euro (31.12.2014: 10.0 To the foolaal valie of the fixed assets will be transferred to the Group only after settlement of all lease liabilities.

(10)

	Concessions, patents, trademarks and similar rights	Other intangible assets	Land and buildings	Other fixed assets and inventory	Advances	Goodwill	Leasehold improvements	Total
	EUR	EUR	EUR	EUR	EUR	EUR	EUR	EUR
Cost
31.12.2014.	17 084		1 423	698 084			286 642	1 003 233
Adapted as a result of
subsidiary acquisition	85 372	107 359		172 538				365 269
Additions	17 749	486		283 583	46 858	127 616	39 329	515 621
Disposals	(86 303)	(107 845)	(1 423)	(248 512)				(444 083)
31.12.2015.	33 902			905 693	46 858	127 616	325 971	1 440 040
Depreciation
31.12.2014	11 463		1 423	413 224
Adapted as a result of							183 174	609 284
subsidiary acquisition	85 372	98 625		154 873				338 870
Charge for 2015	3 581	2 138		190 635		-	49 376	245 730
Disposals	(86 228)	(100 763)	(1 423)	(209 226)
31.12.2015.	14 188			549 506			232 550	(397 640) 796 244
Net book value
31.12.2015	19 714
				356 187	46 858	127 616	93 421	643 796
Net book value
31.12.2014	5 621			284 860			103 468	393 949

EXPRESSCREDIT SIA Annual accounts and Consolidated annual accounts FOR THE YEAR ENDED 31 DECEMBER 2015 (TRANSLATION FROM LATVIAN)

Notes (continued)

(11) Parent Company's investments in subsidiaries

The Parent company is the sole shareholder of the subsidiary SIA "ExpressInkasso" (100%), of the subsidiary SIA "Banknote" (100%), of the subsidiary SIA "EC Investments" (100%) and of the subsidiary SIA "EC Finance" (100%).

participating interest in subsidiaries a) a

Name	Acquisition price of subsidiaries		Participating interest in share capital of subsidiaries
	31.12.2015.	31.12.2014.	31.12.2015.	31.12.2014.
	EUR	EUR	9/0	0%
SIA Expressinkasso	2 828	2 846	100	100
SIA Banknote (till 30.04.2015 - SIA "Rīgas pilsētas lombards") from 23.02.2015	880 000		100	100
SIA EC Investments from 06.11.2015.	3 000		100	100
SIA EC Finance from 01.12.2015.	3 000		100	100
	888 828	2 846

b) information on subsidiaries

		Shareholders' funds		Profit/ (loss) for the period
Name	Address	31.12.2015. EUR	31.12.2014. EUR	31.12.2015. EUR	31.12.2014. EUR
SIA Expressinkasso	Raunas street 44k-1.
	LV-1039 Riga, Latvia	203 756	111 009	92 765	92 001

Basic operations of SIA ExpressInkasso are debt collection services.

SIA Banknote (till 30.04.2015- SIA "Rīgas	Raunas street 44k-1. LV-1039 Riga, Latvia
pilsētas lombards") from 23.02.2015		819 039	878 795	(39 847)	(529 711)
	Basic operation of SIA Banknote is providing of loans against mortgage.
SIA EC Investments from 06.11.2015	Raunas street 44k-1. LV-1039 Riga, Latvia	(15 319)		(18 319)
SIA EC Investments from 06.11.2015	Raunas street 44k-1. LV-1039 Riga Latvia	0000

Basic operations of SIA EC Investments and SIA EC Finance are activities of holding companies.

(12) The Group's loans to shareholders and management.

	Loans to members EUR
Cost
31.12.2014.	1 295 066
Loans issued	1 649 189
Loan interest calculated	34 417
Loans repaid	(2 103 405)
31.12.2015.	875 267
Net book value as at 31.12.2015	875 267
Net book value as at 31.12.2014	1 295 066

Interest on borrowing is 3.2-4.23% per annum. The loan maturity - 31 December 2017 (including the loan principal amount and accrued interest). The Company's nationally - of December 2017 (industig the loan philippi annum in and in convinced that a provision is not necessary. All loans are denominated in euro.

Notes (continued)

	(13) Deferred tax asset of the Parent company and the Group
				2015 EUR	2014 EUR
	Deferred tax asset at the beginning of the reporting year			117 420	26 787
Increase of deferred tax asset during the reporting year (see Note 9)			26 185	90 633
	Deferred tax asset at the end of the reporting year			143 605	117 420
	Deferred tax has been calculated from the following temporary differences between assets and liabilities values for financial and tax purposes:
				31.12.2015.	31.12.2014.
				EUR	EUR
	Temporary difference on fixed assets depreciation Temporary difference on provisions for unused annual leave and			10 946	9 344
	bonuses			(42 195)	(29 165)
	Temporary difference on provisions for slow moving and obsolete stock Deferred tax asset			(112 356) (143 605)	(97 599) (117 420)
	(14) Stock of the Parent company and the Group
				31.12.2015. EUR	31.12.2014. EUR
	Goods for sale and pledges taken over			1 155 443	1 158 319
	Gold scrap			297 156	349 470
	Gross value of stock			(314 189)	(162 451)
				1 138 410	1 345 338
(14a)	Age analysis of stock
				31.12.2015.	31.12.2014.
				EUR	EUR
	Outstanding for 0-180 days			535 910	1 062 721
	Outstanding for 181-360 days			441 564	264 834
	Outstanding for more than 360 days			475 125	180 234
	Total stock			1 452 599	1 507 789
(14b)	Provision for obsolete stock
				2015	2014
				EUR	EUR
	Provisions for obsolete stock at the beginning of the year			162 451	113 604
	Written-off			(635 893)	(33 852)
	Additional provisions			787 631	82 699
	Provisions for obsolete stock at the end of the year			314 189	162 451
(15)	Loans and receivables
		Parent	Group	Parent	Group
		company		company
		31.12.2015.	31.12.2015.	31.12.2014.	31.12.2014.
		EUR	EUR	EUR	EUR
	Long-term loans and receivables
	Debtors for loans issued against pledge	156 022	156 022	321 288	321 288
	Debtors for loans issued without pledge Long-term loans and receivables, total	389 046	389 046	141 322	141 322
		545 068	545 068	462 610	462 610
	Short-term loans and receivables
	Debtors for loans issued against pledge	2 535 083	2 535 083	1 975 203	1 975 203
	Debtors for loans issued without pledge	3 791 853	4 120 862	3 496 152	3 924 489
	Interest accrued	510 551	510 551	606 901	606 901
	Provisions for bad and doubtful trade debtors	(710 540)	(710 540)	(676 893)	(676 893)
	Short-term loans and receivables, total	6 126 947	6 455 956	5 401 363	5 829 700
	Loans and receivables	6 672 015	7 001 024	5 863 973	6 292 310

All loans are issued in euro.

Notes (continued)

(15) Loans and receivables (continued)

Long term receivables for the loans issued don't exceed 5 years.

In 30 June 2015 and 30 November 2015 were concluded contracts with SIA "Express Inkasso" about cession of bad receivable amounts. The carrying value of the sonolinated of the Explessingles in and research of additions of arce according to the independent evaluations' assessment = accordingly EUR 163 436 and 253 032 .
issued loans within the Croup was researching in the = 43 138 and 253 032. Loss f issued loans within the Group were recognism in Current year. As at 223 032. Loss from Impalment of the eubsidiary company SIA "Expresslokasso" signed a thir party of the bad receivable amounts cession. The substition substition of the claim in the subsidiary's balace steet and the bad received. Including in the saming value accordingly EUR 199083 and EUR 144 743. Loses from this transactions were recognised in the current year.

The claims in amount of EUR 2 233 622 (31.12.2014: EUR 2 296 491) are secured by the value of the collateral. Claims against debtors for loans issued against pledge is secured by the value is about 1.5 times higher than the carrying value, therefore provisions for overded by proget for value its intest in the signific than the carrying the carrying Group's property and are realized in the Group's stores.

(15a) Age analysis of claims against debtors for loans issued:

	Parent company 31.12.2015.	Group 31.12.2015.	Parent company 31.12.2014.	Group 31.12.2014.
	EUR	EUR	EUR	EUR
Receivables not yet due	5 306 083	5 307 491	5 083 503	5 107 296
Outstanding 1-30 days	440 750	440 750	619 728	619 822
Outstanding 31-90 days	480 773	480 773	484 409	517 429
Outstanding 91-180 days	566 021	566 021	243 527	321 165
Outstanding for 181-360 days	509 602	704 883	11 408	179 840
Outstanding for more than 360 days	79 326	211 646	98 291	223 651
Total claims against debtors for loans issued	7 382 555	7 711 564	6 540 866	6 969 203

(15b) Provisions for bad and doubtful trade and other receivables

	2015	2015	2014	2014
	EUR	EUR	EUR	EUR
Provisions for bad and doubtful receivables
at the beginning of the year	676 893	676 893	555 590	555 590
Written-off	(4 945)	(4 945)	(22 090)	(22 090)
Additional provisions	38 592	38 592	143 393	143 393
Provisions for bad and doubtful receivables
at the end of the year	710 540	710 540	676 893	676 893
(16) Receivables from affiliated companies
	31.12.2015.	31.12.2015.	31.12.2014.	31.12.2014.
	EUR	EUR	EUR	EUR
Debts for goods and fixed assets sold, prepayment	1 408	1 408	35 514	36 403
ExpressCreditEesti OU liability for loan issued and
loan interest	5 031	5 031	4 149	4 149
SIA A.Kredits liability for loan issued , loan interest
and services delivered SIA Ebility liability for loan issued, loan interest and	99 379	99 379	102 025	102 025
debt for the assigned rights of claim SIA ExpressInkasso debt for the assigned rights of				31 876
claim Liabilities of the Parent company's board for the loan	289 113		333 800
issued and loan interest SIA EC Investments liability for loan issued and loan	37	37	9 004	34 420
interest	40 522
	435 490	105 855	484 492	208 873

The interest rate on loans to related parties - 3:2-4.23 %. All loans and other claims denominated in euro.

ExpressCredit SIA Annual accounts and Consolidated annual accounts FOR THE YEAR ENDED 31 DECEMBER 2015 (TRANSLATION FROM LATVIAN)

Notes (continued)

(16) Receivables from affiliated companies (continued)

Age analysis of receivables from affiliated companies

		Parent	Group	Parent	Group
		company		company
		31.12.2015.	31.12.2015.	31.12.2014.	31.12.2014.
		EUR	EUR	EUR	EUR
Receivables not yet due		386 309	43 340	450 454	173 946
Outstanding for 1-180 days		49 181	62 515
Outstanding for 181-360 days				34 038	34 038
Outstanding for more than 360 days					880
Total receivables from affiliated companies		435 490	105 855	484 492	208 873
Other debtors (17)
		31.12.2015.	31.12.2015.	31.12.2014.	31.12.2014.
		EUR
			EUR	EUR	EUR
Loans to employees and other third parties		16 513	16 513	12 130	12 130
Guarantee deposit		64 074	86 305	61 619	61 690
Other debtors		23 572	196 702	8 446	8 515
Provisions for bad and doubtful other debtors		(2 084)	(2 084)	(1 659)	(1 659)
		102 075	297 436	80 536	80 676
(17a) Provisions for bad and doubtful other debtors				2015	2014
				EUR	EUR
Provisions for bad and doubtful other debtors at the beginning of the year
Written-off				1 659
				(149)	(1 632)
Additional provisions				574	3 291
Provisions for bad and doubtful other debtors at the end of the year				2 084
					1 659
(17b) Parent company other debtors by currency, translated into EUR:
	31.12.2015.	31.12.2015.		31.12.2014.	31.12.2014.
	EUR		9/0	EUR	0/0
EUR	103 351		99.22	79 693	96.89
Provisions EUR GBP	(2 084)			(1 659)
USD	808		0.78	1 030	1.28
Total other debtors	102 075		100%	1 472 80 536	1.83
					100%
Group other debtors by currency, translated into EUR:
	31.12.2015.	31.12.2015.		31.12.2014.	31.12.2014.
	EUR		0/0	EUR	9/0
EUR Provisions EUR	296 753		99.08	79 833	96.90
GBP	(2 084)			(1 659)
USD	2 767		0.92	1 030 1 472	1.28 1.82
Total other debtors	297 436		100%	80 676	100%

(17c) Age analysis of other debtors

	Parent company	Group	Parent company	Group
	31.12.2015.	31.12.2015.	31.12.2014.	31.12.2014.
	EUR	EUR	EUR	EUR
Repayable upon request	64 074	86 305	61 619	61 759
Receivables not yet due	35 910	204 858	18 178	18 178
Outstanding for 1-30 days			1 184	1 184
Outstanding for 31-90 days			383	383
Outstanding for 91-180 days		4 182
Outstanding for 181-360 days	515	515	612	612
Outstanding for more than 360 days	3 660	3 660	219	219
Provisions	(2 084)	(2 084)	(1 659)	(1 659)
Total other debtors	102 075	297 436	80 536	80 676

Notes (continued)

(18) Deferred expenses

	Parent company	Group	Parent company	Group
	31 2.2015. EUR	31.12.2015. EUR	31.12.2014. EUR	31.12.2014. EUR
Insurance License for lending services and debt recovery	6 942	6 942	6 114	6 114
services	15 051	16 192	11 854	14 181
Prepayment for rent and other costs	11 199	12 029	9 794	9 794
Total deferred expenses	33 192	35 163	27 762	30 089
(19) Cash and bank
	31.12.2015.	31.12.2015.	31.12.2014.	31.12.2014.
	EUR	EUR	EUR	EUR
Cash at bank	255 599	289 924	866 040	866 615
Cash in hand	183 672	203 667	331 088	331 103
	439 271	493 591	1 197 128	1 197 718

All the Parent company's and the Group's cash is in euro.

(20) Share capital

As at 31 December 2015 the subscribed and fully paid share capital the Parent Company is EUR 426 861 that consists of 426 861 ordinary shares with a nominal value of EUR 1 each.

(21) Bonds issued

	31.12.2015. EUR	31.12.2015. EUR	31.12.2014. EUR	31.12.2014. EUR
Bonds issued	5 500 000	5 500 000	6 500 000	6 500 000
Bonds commission	(10 352)	(10 352)	(28 534)	(28 534)
Total long-term part of bonds issued	5 489 648	5 489 648	6 471 466	6 471 466
Bonds issued	1 000 000	1 000 000	1 000 000	1 000 000
Bonds commission	(18 182)	(18 182)	(24 867)	(24 867)
Interest accrued	34 453	34 453	17 303	17 303
Total short-term part of bonds issued	1 016 271	1 016 271	992 436	992 436
Bonds issued, total	6 500 000	6 500 000	7 500 000	7 500 000
Interest accrued, total	34 453	34 453	17 303	17 303
Bonds commission, total	(28 534)	(28 534)	(53 401)	(53 401)
Bonds issued net	6 505 919	6 505 919	7 463 902	7 463 902

As at the date of signing of the annual report the Parent company of the Group has registered secured bonds (ISIN LV000001280) with the Latvia Central Depository on the following terms - number of financial instruments 5 000 with the nominal value of 600 euro, with the total nominal value of 3 000 000 euro. Coupon is paid once a month on the 25" date. The principal amount is repaid once in a quarter in the amount of 50 euro per bonnel of the bonds – 25 November 2018. On 28 March 2014 the public quotation of the bonds with The maturity the bonties list world started.

As at the date of signing of the annual report the Group has registered secured bonds (ISIN 10000801322) with the Latvia Central Depository on the following terms - number of financial instruments 3 500 with he nominal value of 1000 euro, with the total nominal value of 3 500 000 euro. Coupon rate - 15% coupon is paid once a morth on the 25" date. The principal amount is to be repaid once in a quarter in the amount of 125 euro per brond starting 25 March 2019. The maturity of the bonds – 25 December 2020. On 14 April 2014 the public quotation of the bonds with NASDAQ OMX Riga Baltic Securities list was started.

The bonds are secured by the commercial pledge of the total assets and shares of the Group, as well as future components of these assets. The bonds are also secured by the financial pledge of the Grupp, as while a future of in the Group held at AS "Regionālā investīciju banka". The bond holders have the rights to recover their assets no noveld to their share of investment in case of pledge realisation if the parent company has breached the conditions of coupon payment or principal repayment.

The following pledge agreements with the total pledge value of EUR 6 million are concluded. The secured amount of each pledge - in the total value of the pledge amount:

• with the Parent company on 100% shares of SIA "EkspressInkasso";
• with a subsidiary SIA "EkspressInkasso" on aggregate movable property and future components of these assets; with the Parent company on aggregate movable property and future components of these assets. Leased vehicles are excluded from the pledge listing.

Notes (continued)

(21) Bonds issued (continued)

	Gross future minimum payments	NPV of future minimum payments	Interest expenses	minimum payments	Gross future NPV of future minimum payments	Interest expenses
	31.12.2015	31.12.2015	31.12.2015	31.12.2014	31.12.2014	31.12.2014
	EUR	EUR	EUR	EUR
Term:					EUR	EUR
up to one year	1 915 833	1 000 000	915 833	2 020 833	1 000 000	1 020 833
2 - 5 years	7 760 781	5 500 000	2 260 781	6 751 563	4 750 000	2 806 563
6-10 years				1 914 063	1 750 000	164 063
	9 676 614	6 500 000	3 176 614	10 686 459	7 500 000	3 991 459

(22) Other borrowings

Parent company	Group	Parent	Group
31.12.2015.	31.12.2015.	31.12.2014.	31.12.2014. EUR
166 741	166 741	96 676	96 676
500 000	500 000	500 000	500 000
666 741	666 741	596 676	596 676
54 846	54 846		30 341
330 000	330 000
384 846	384 846	30 341	30 341
1 051 587	1 051 587	627 017	627 017
	EUR	EUR	company EUR 30 341

The Parent company has acquired fixed assets on finance lease. As at 31 December 2015 the interest rate was set as 3 M Euribor + 5.5% and 6M Euribor + 3-3.5%. See Note 10 on residual values of fixed assets acquired under the finance lease conditions.

The Parent company has received loans from private individuals and legal entities. The interest is charged from 0 to 15 % p.a. The loans are received without security granted.

Total future minimum lease payments - present value and interest expense for Parent company other borrowings and borrowings from affiliated companies:

	Gross future minimum payments	NPV of future minimum payments	Interest expenses	Gross future minimum payments	NPV of future minimum payments	Interest expenses
	31.12.2015 EUR	31.12.2015 EUR	31.12.2015 EUR	31.12.2014 EUR	31.12.2014 EUR	31 12.2014 EUR
Term:
up to one year	490 049	384 846	105 703	100 341	30 341	70 000
2 - 5 years	699 255	666 741	32 514	696 016	596 676	99 340
	1 189 304	1 051 587	138 217	796 357	627 017	169 340

Total future minimum lease payments - present value and interest expense for Group other borrowings from affiliated companies:

	Gross future minimum payments	NPV of future minimum payments	Interest expenses	Gross future minimum payments	NPV of future minimum payments 31.12.2014 EUR	Interest expenses
	31.12.2015 EUR	31.12.2015 EUR	31.12.2015 EUR	31.12.2014 EUR		31.12.2014 EUR
Term:
up to one year	490 549	384 846	105 703	100 341	30 341	70 000
2 - 5 years	699 282	666 741	32 514	696 016	596 676	99 340
	1 189 831	1 051 587	138 217	796 357	627 017	169 340

ExpressCredit SIA Annual accounts and Consolidated annual accounts FOR THE YEAR ENDED 31 DECEMBER 2015 (TRANSLATION FROM LATVIAN)

Notes (continued)

(23)

	Parent company 31.12.2015.	Group 31.12.2015.	Parent company 31 12 2014.	Group 31.12.2014.
Debt to SIA Banknote for permanent share purchase, realized goods and fixed assets Accrued liabilities for facilities management and	755 013
utilities to SIA A.Kredīts	889	889
Loan from AS Naudasklubs	16 550	16 550
Interest accrued on AS Naudasklubs Debt for the services provided by	257	257
the SIA AE Consulting		1 289
Total liabilities to related parties	772 709	18 985

Trade creditors and accrued liabilities (24)

	31.12.2015.	31.12.2015.	31.12.2014.	31.12.2014.
	EUR	EUR	EUR	EUR
Debts to suppliers	144 253	147 926	56 117	74 596
Salaries	166 172	168 162	149 496	152 061
Vacation accrual*	281 298	281 298	194 431	194 431
Vacation liabilities paid out as at the date of signing
of these financial statements	2 377	2 377	2 308	2 308
Amounts due to loan recipients	35 991	35 991
Other liabilities	45 359	45 517	31 003	31 045
	675 450	681 271	433 355	454 441

(24a) Parent company's trade creditors by currency, translated into EUR:

	31.12.2015. EUR	31.12.2015. 0/0	31.12.2014. EUR	31.12.2014. %
EUR	674 420	99.85	432 325	99.76
GBP	1 030	0.15	1 030	0.24
Total trade creditors and accrued liabilities	675 450	100%	433 355	100%

Group's trade creditors by currency, translated into EUR:

	31.12.2015. EUR	31.12.2015. 9/0	31.12.2014. EUR	31 22014. %
EUR	680 241	99.85	453 411	99.77
GBP	1 030	0.15	1 030	0.23
Total trade creditors and accrued liabilities	681 271	100%	454 441	100%
(24b) Ageing analysis of trade creditors:
	31.12.2015.	31.12.2015.	31.12.2014.	31.12.2014.
	EUR	EUR	EUR	EUR
Receivables not yet due	604 726	608 664	412 267	433 353
Outstanding for 1-30 days	70 724	72 607	21 088	21 088
Total trade creditors and accrued liabilities	675 450	681 271	433 355	454 441

Notes (continued)

(25) Taxes and social insurance payments

Parent company's taxes and social insurance

	VAT	Corporate income tax	Real estate tax*	Business risk charge	Social insurance	Payroll tax	Vehicles tax	Natural resource	Total
	EUR	EUR	EUR	EUR	EUR	EUR	EUR	tax EUR	EUR
Liabilities
31.12.2014. Charge for	33 984	47 545		100	85 648	98 884	2 112		268 273
2015 Penalties calculated	345 412	206 856	269	1 311	1 181 147	758 899	12 912		2 506 806
for 2015 Transferred	ଚିଚ	47				849			962
to other taxes	1951				(1951)
Paid in 2015 Liabilities/ (overpaid)	(359 111)	(349 935)	(269)	(1 307)	(1 165 419)	(728 056)	(11 492)		(2 615 589)
31.12.2015.	22 302	(95 487)		104	99 425	130 576	3 532		160 452

Group's taxes and social insurance

	VAT	Corporate income tax	Real estate tax*	Business risk charge	Social insurance	Payroll tax	Vehicles tax	Natural resource	Total
	EUR	EUR	EUR	EUR	EUR	EUR	EUR	tax EUR	EUR
Liabilities
31.12.2014. Acquired "Banknote", SIA	33 980	69 240		ਰੇਰੇ	86 962	ਰੇਰੇ ਦੇ ਵੱਡਰ	2 112		291 952
01.03.2015. Charge for	984	(2 896)			1 904	(447)			(455)
2015 Penalties calculated	356 619	220 676	269	1 372	220 167	781 591	12 912	14	2 593 620
for 2015 Transferred	146	47			4	903			1 100
to other taxes	456	2 896			(4 572)	1 220
Paid in 2015	(373 572)	(394 454)	(269)	(1370)	(1 203 976)	(751 728)	(11 492)		(2 736 861)
Liabilities / (overpaid)
31.12.2015.	18 613	(104 491)		101	100 489	131 098	3 532	14	149 356

* Real estate tax payments are performed also for the leased premises in Riga, GogoJa Street.

(26) Average number of employees

	2015	2014
Average number of employees during the reporting year:	304	287
(27) Management remuneration
	31.12.2015.	31.12.2014.
	EUR	EUR
Board members' remuneration:
· salary expenses	523 313	127 668
social insurance	27 797	27 943
	551 110	155 611

Notes (continued)

and intangible assets (NBV)

Depreciation and amortisation during the reporting period

Loans issued

Loans received

172 060

(81 831)

131 316

(83 116)

172 060

(81 831)

2 641 784

2 380 411

131 316

(83 115)

2 164 518

2 543 207

(28) Information by segments and turnover

		Sale of pledges taken over		Secured loans		Non-secured loans	Based on the nature of the services the Parent Company's operations can be divided as follows.	Other activities	Total
EUR
	2015	2014	2015	2014	2015	2014	2015	2014	2015	2014
Assets Liabilities of the	1 388 670	1 594 965	3 110 871	2 942 792	4 499 318	4 477 729	2 245 474	1 793 024	11 244 333	10 808 510
segment	158 821	140 309	2 888 504	2 804 051	4 220 870	4 273 634	1 897 922	1 574 553	9 166 117	8 792 547
Income Net performance	1 866 919	1 860 481	3 888 086	3 299 587	5 773 917	5 271 144	80 480	86 598	11 609 402	10 517 810
of the segment Net financial income	50 835	258 226	982 863	899 696	371 726	259 325	(33 609)	(107 685)	1 371 815	1 309 562
(expenses) Profit/(loss)	(94)	(142)	(437 513)	(385 640)	(639 395)	(744 349)	(84 070)	(45 327)	(1 161 072)	(1 175 458)
before taxes Corporate	57 530	292 267	1 112 307	1 018 297	420 684	293 510	(38 035)	(121 881)	1 552 486	1 482 193
income tax	(6 695)	(34 040)	(129 445)	(118 601)	(48 957)	(34 185)	4 426	14 195	(180 671)	(172 631)
Other information Fixed assets and intangible assets (NBV) Depreciation and amortisation during the	172 060	131 316	172 060	131 316	172 060	131 317			516 180	393 949
reporting period	(79 320)	(83 116)	(79 320)	(83 115)	(79 319)	(83 115)			(237 959)	(249 346)
Loans issued			2 641 784	2 164 518	4 030 231	3 699 455	1 310 757	1 779 558	7 982 772	7 643 531
Loans received			2 629 374	2 584 227	3 802 918	3 932 139	1 897 923	1 574 553	8 330 215	8 090 919
EUR	Based on the nature of the services the Group's operations can be divided as follows. Sale of pledges taken over			Secured loans	Non-secured loans		Other activities		Total
	2015	2014	2015	2014	2015
						2014	2015	2014	2015	2014
Assets Liabilities of the	1 388 670	1 595 880	3 138 031	2 943 863	5 002 272	4 907 137	1 205 174	1 514 559	10 734 147	10 961 439
segment	157 819	123 885	2 637 906	2 773 642	3 874 983	4 631 355	1 736 410	1 308 430	8 407 118	8 837 312
Income Net performance of the segment	1 890 178 143 976	1 575 436	4 075 398	3 299 587	6 010 020	5 784 754	83 225	86 598	12 058 821	10 746 375
Net financial income		135 991	1 045 292	008 800	357 696	466 184	(34 500)	(107 412)	1 512 464	1 401 563
(expenses) Profit/(loss)	(117)	(117)	(437 502)	(370 171)	(639 667)	(800 491)	(84 676)	(45 327)	(1 161 962)	(1 216 106)
before taxes Corporate	162 490	154 951	1 179 708	1 033 226	403 693	531 179	(38 936)	(122 388)	1 706 955	1 596 968
income tax	(18 514)	(18 960)	(134 416)	(126 426)	(45 997)	(64 995)	4 436	14 976	(194 491)	(195 405)
Other information Fived accepte

172 060

(81 832)

4 359 240

3 459 669

131 317

(83 115)

4 127 792

4 239 282

127 616

981 122

-

.

1 503 939

1 308 430

643 796

(245 494)

7 982 146

7 576 491

393 949

(249 346)

7 796 249

8 090 919

Notes (continued)

(29) Rent and lease agreements

The Company has concluded 98 rental agreements effective as at 31.12.2015. The term of the agreements varies from 1 to 10 years. The following schedule summarises future lease payment liabilities in accordance with the agreements concluded.

	31.12.2015. EUR	31.12.2014. EUR
< 1 year	882 204	775 238
2 - 4 years	1 905 992	481 357
5 years and more	141 047	193 544
	2 929 243	2 450 139

(30) Related party transactions

In the annual report there are presented only those related parties with whom have been transactions the reporting year or in the comparative period.

Related party	Transactions In 2015	Transactions in 2014
Parent company's owners
"Lombards24.lv", SIA (previously "Express Holdings", SIA), reg.
No.40103718685	×	×
"AE Consulting", SIA, reg. No. 40003870736	×	×
"Ebility", SIA, reg. No. 40103720891	×	×
Companies and individuals under common control or significant influence
Agris Evertovskis, p.c. 081084-10631	×	×
Edgars Bilinskis, p.c. 310782-10537	×	×
"ALPS Investments", AS (previously "Dotcom Enterprises", AS),
reg. No. 40103684497	×	×
Subsidiary
"ExpressInkasso", SIA, reg. No. 40103211998	X	X
"Banknote", SIA, reg. No. 40003040217	×	N/A
"EC Investments", SIA, reg. No. 40103944745	×	N/A
"EC finance", SIA, reg. No. 40103950614	×	N/A
Other related companies
ABS Holding LIMITED, C41264	N/A	×
"Infrastructure Investments" AS, reg. No. 40103242023	N/A	×
"Naudasklubs" SIA, reg. No. 40103303597	X	×
"A.Kredīts" SIA, reg. No. 40103501494	X	X
"ExpressCreditEesti" OU, reg. No. 12344733	X	×
"Tigo.lv" SIA , reg. No. 40103653497	×	×
"PH investīcijas", SIA, reg. No. 42103057909	×	×
Didzis Admīdinš, p.c. 051084-11569	X	N/A

All the transactions have been performed at market rates.

	2015	2014
	EUR	EUR
Parent company transactions with:
Owners of the parent company
Cession of loans	320 547
Loans received		203 775
Loans repaid		203 775
Loans issued	1 649 189	8421
Loan repayment received	2 069 749	721 540
Interest paid		6 915
Interest received	34 417	66 128
Dividends paid	1 309 562	1 100 000
Services received	3 455
Goods sold	24 951
Fixed assets sold	268
Subsidiaries
Cession of loans	623 429	1 044 659
Loans received	199 000
Loans repaid	199 000
Loans issued	92 480
Loan repayment received	52 480
Services received	1 411
Services delivered	10 065
Goods sold	206
Goods received	3 570
Fixed assets received	63 606

ExpressCredit SIA Annual accounts and Consolidated annual accounts FOR THE YEAR ENDED 31 DECEMBER 2015 (TRANSLATION FROM LATVIAN)

Notes (continued)

1

(30)	Related party transactions (continued)
	Parent company's transactions with:	2015	2014
	Subsidiaries	EUR	EUR
	Interest paid	2 500
	Interest received	799
	Shares received	6 000
	Takeover of company independent parts	528 216
	Companies and individuals under common control or significant
	influence Loans received
	Loans repaid	1 868 500	698 000
	Loans issued	1 868 500 1 969 900	698 000
	Loan repayment received	1 975 050	653 034 647 884
	Interest paid	11 923	7 963
	Interest received	7 059	6 219
	Services delivered		7 680
	Bonds sold	385 219
	Other related companies
	Loans received	16 900	95 000
	Loans repaid Loans issued	350	2 159 600
	Loan repayment received	869 620	418 913
	Interest paid	886 870	824 928
	Interest received	257 20 289	20 002
	Services received	84 174	7 142 139 032
	Services delivered	10 790	18 305
	Goods sold	800	18 236
	Goods received	20 636	24 495
	Fixed assets received Fixed assets sold	702	9 281
			32 000
	Group's transactions with:
	Owners of the parent company
	Cession of loans	338 925
	Loans received Loans repaid		203 775
	Loans issued		203 775
	Loan repayment received	1 649 189	39 421
	Interest paid	2 100 749	721 540
	Interest received	76 610	6 915 67 002
	Dividends paid	1 309 562	1 100 000
	Services received	4 925
	Goods sold Fixed assets sold	24 951
		268
influence	Companies and individuals under common control or significant
	Loans received
	Loans repaid	1 868 500 1 868 500	690 000
	Loans issued	1 969 900	690 000 326 875
	Loan repayment received	1 999 603	302 725
	Interest paid	11 923	7 963
	Interest received	7 393	5 543
	Bonds sold	385 219
	Other related companies
	Loans received	16 900	95 000
	Loans repaid	350	2 159 600
	Loans issued	869 620	418 913
	Loan repayment received Interest paid	886 870	824 928
	Interest received	257	20 002
	Services received	20 289	7 142
	Services delivered	84 174 10 790	139 032
Goods sold		800	18 305 18 236
	Goods received	20 636	24 495
	Fixed assets received	702	9 281
	Fixed assets sold		32 000

Notes (continued)

(31) Business combinations

During the 2015, on 12 February 2015 the Parent company and the Riga City Council has signed a contract on purchase of 569 148 (100%) shares of SlA "Bankne" (till 30.04.2015 Sla "Riga pilsētas lombrids") which were auctioned by the formas of Sta The purchase price of 880 000 euro was fully paid on 18 February 2015. On 23 February 2015 the transaction was registed in the Companies' Register. During the year the pawnshop operations of SIA, "Banknote" were transfered to SlA "ExpressCredit".

Acquisition value of the subsidiary - EUR 880 000. The purchase was paid in cash. Purchase price, net of cash acquired in a result of the purchase - EUR 849 234.

To assess the acquired company's goodwill its assets and liabilities were valued as at 28 February 2015. Assets acquired and liabilities and a summary of the goodwill associated calculation reflected in the following of temany.

Asset / liability item	28.02.2015 EUR
Fixed assets and intangible assets	26 400
Stock	166 373
Loans against collateral	505 702
Other receivables	73 806
Cash	30 766
Liabilities	(47 663)
Net assets	752 384
Goodwill	127 616
Remuneration paid to for the acquisition of the subsidiary	880 000

The goodwill is attributable to the costs of opening of an equivalent company and acquisition of required operating licenses. All assets valued at their net values to be recovered.

At the end of 2015 the Parent company took over a part of the subsidiary's business (lending against collateral) as a result of the restructuring. Amount of the assets taken over- EUR 772 709. Net assued against collateral and the pledges taken over.

(32) Guarantees issued

As at 31 December 2015 the Parent company has issued guarantees to the Company and other related companies for the purchase of cars under the terms of financial lease. The other of the other of the United Company and Onlier Elated Comp

(33) Subsequent events

There are no subsequent events since the last date of the reporting year, which would have a significant effect on the financial position of the Company as at 31 December 2015.

INDEPENDENT AUDITORS' REPORT Translation from I atvian

To the Shareholders of SIA ExpressCredit

Ūdens iela 12-45, Rīga, LV-1007, Latvija T +371 67607902 E +371 67807092 www.p-a.lv

Report on the Financial Statements of SIA ExpressCredit as a separate entity and the Consolidated Financial Statements of SIA ExpressCredit group

We have audited the accompanying financial statements of SIA ExpressCredit as a separate entity and consolidated financial statements of SIA Express Credit and its subsidiaries (further in the Group) set out on pages to 3 of the accompanying annual report of SIA ExpressCredit as a separate entity and SIA ExpressCredit group, compising to or o balance sheets as of 31 December 2015, the profit or loss statements of changes in equity and eash flow statements for the year then ended as well as the summittee of clailigs in equilt and other explanator information ..

Management's Responsibility for the Consolidated Financial Statements

Management of the holding company of the Group is responsible for the preparation and fair presentation of the accompanying financial statements of SIA ExpressCredit as a separate entity and consolidated financial statements of the Group in accordance with International Financial Reporting Standards as adopted by the European Union, and for such internal control as management determines is necessary to enable the preparation of the separe and consolidated financial statements that are free from material misstatement, whe "propriation" on "nr.

Auditors' Responsibility

Our responsibility is to express an opinion on the accompanying consolidated financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance ahout where the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the iske of material misstatement of the consolidated financial statements, whether due to fraud or error. In making the risks o essessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes, including evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and oppropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements of SIA ExpressCredit as a separate entity and consolidated financial statements of the Group give a true and fair view of the financial position of the of SIA ExpressCredit as a separate entity and Group as of 31 December 2015, and of their financial performance and their cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union.

Report on Other Legal and Regulatory Requirements

We have read the management report for 2015 set out on page 6 and did not identify material inconsistencies between the financial information contained in the management report and that contained in the financial statements of ClA ExpressCredit as a separate entity and consolidated financial statements of the Group for 2015.

Report on Corporate Governance Statement

We have read the Corporate Governance Statement for 2015 set out on page 7 and did not identify material inconsistencies this Statement.

On behalf of SIA Potapoviča un Andersone, Certified Auditors Company Licence No. 99)

Kristīne Potapoviča Responsible Certified Auditor Certificate No. 99 Chairperson of the Board

29 April 2016, Riga, Latvia