OVOSTAR UNION

CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE 6 MONTHS ENDED 30 JUNE 2022

BoD Statement	3
Interim Management Report	4
Consolidated Condensed Interim Statement of Comprehensive Income	13
Consolidated Condensed Interim Statement of Financial Position	14
Consolidated Condensed Interim Statement of Changes in Equity	15
Consolidated Condensed Interim Statement of Cash Flows	16
Notes to the Consolidated Condensed Interim Financial Statements	17

STATEMENT OF DIRECTORS' RESPONSIBILITY

Members of the Board of Directors of Ovostar Union Public Company Limited in accordance with Subsection (3c) and (7) of the Section (10) of the Law providing for transparency requirements in relation to information about issuers whose shares are admitted to trading on a regulated market (L.190(I)/2007 - "Transparency Law") herewith confirms that to the best of their knowledge:

(a) the present unaudited consolidated condensed interim financial statements

(i) have been prepared in accordance with the applicable International Financial Reporting Standards as adopted by the European Union and in compliance with the requirements set forth in Subsection (4) of the Section (9) of the Transparency Law, and

(ii) give a true and fair view of the assets, liabilities, financial position and profit or loss of the issuer and the undertakings included in the consolidated accounts taken as a whole.

(b) the interim management report includes a fair review of the information required

by subsection (6) of section (10) of the Transparency Law.

………………………………… Borys Bielikov Chief Executive Officer, Executive Director

………………………………… Vitalii Veresenko Chairman of the Board, Non-executive Director

………………………………… Karen Arshakyan Head of Audit Committee, Non-executive Director

………………………………… Markiyan Markevych Non-executive Director ………………………………… Vitalii Sapozhnik Chief Financial Officer

INTERIM MANAGEMENT REPORT

In accordance with the Law providing for transparency requirements in relation to information about issuers whose shares are admitted to trading on a regulated market (L.190 (I)/2007 - "Transparency Law") the present Interim Management Report includes the following:

a detailed and extended economic analysis of the results that enables assessment and evaluation of the course of the results during the period;
a declaration of any income from non recurring or extraordinary activities of the Group;
comparative economic analysis of the figures showing for the period in relation to the previous corresponding period, which has to be sufficient and extensive in order to identify the changes and the differences between the results of the two periods;
an indication of important events that have occurred during the first six months of the financial year, and their impact on the interim financial statements;
a description of the principal risks and uncertainties for the remaining six months of the financial year;
other substantial information, which affects or could affect the assessment or evaluation by the readers of the report, regarding profits and losses for the relevant period or any future periods, the prospects and trends of the operations and the gain or loss of important contracts or co operations;
a description of the related parties' transactions during the first six months of the financial year, in accordance with the International Financial Reporting Standard applicable to the related parties transactions.

KEY SEGMENTS ACTIVITIES EGG SEGMENT

Production

As of 30 June 2022 the Company's total flock equaled 6.26 mln hens, including 6.18 laying hens (30 June 2021: 8.01 and 6.63 mln hens respectively).

The volume of eggs produced in H1 2022 was 794 mln demonstarting 4% decrease YoY (H1 2021: 831 mln).

Sales

In the reporting period the sales volume in the egg segment totaled 541 mln (H1 2021: 540 mln)

Export sales of shell eggs totaled 128 mln (H1 2021: 144 mln), which represents 24% of total number of eggs sold in H1 2022 (H1 2020: 27%).

Average price of eggs in H1 2022 decreased by 2% YoY in USD terms to 0.076 USD/egg (H1 2021: 0.078 USD/egg).

6M 2022 5

KEY SEGMENTS ACTIVITIES EGG PRODUCTS SEGMENT

Production

The volume of eggs processed in H1 2022 fell by 18% YoY and totaled 216 mln (H1 2021: 264 mln).

The Company produced 1 420 tons of dry egg products and 4 745 tons of liquid egg products (H1 2021: 1 619 tons and 6 680 tons respectively).

Sales

The volume of dry egg products sold amounted to 773 tons (H1 2021: 1 622 tons), out of which 425 tons, or 55%, were exported (H1 2021: 1 125 tons, 69%). The volume of liquid egg products sold was 4 547 tons (H1 2021: 6 713 tons), out of which export sales equaled 1 857 tons or 41% (H1 2021: 1 743 tons, 26%).

Dry Egg Products Sales Liquid Egg Products Sales

Average price of dry egg products increased by 71% YoY to 8.01 USD/kg (H1 2021: 4.69 USD/kg); average price of liquid egg products grew by 11% YoY to 1.85 USD/kg (H1 2021: 1.66 USD/kg).

FINANCIAL RESULT

Revenue

Total revenue for the six months of 2022 amounted to USD 56.6 mln, which is by 8%, lower than in the first half of 2021 (6M 2021: USD 61.4 mln). The decrease is mainly accounted for by the lower sales volume of egg products as compared to the previous year (-52% Y-o-Y for dry egg products and -32% for the liquid egg products).

During the 6 months 2022 shell eggs segment contributed USD 41.6 mln, or 74%, to the total revenue. The contribution of egg products segment made up USD 14.9 mln, or 26%. The share of revenues from export sales in 6M 2022 was 36% (6M 2021: 31%).

cost of sales and gross loss

Cost of sales in the reporting period was USD 47.6 mln vs. USD 53.1 mln in 2021. The decrease is explained by the substantial fall in prices of main feed components, i.e. corn and wheat. Gross loss for the 6M 2022 equaled USD 10.4 mln (6M 2021: profit in amount of USD 6.6 mln).

Operating loss and EBITDA

Operating loss for the 6M 2022 was USD 17.6 mln (6M 2021: profit in amount of USD 1.4 mln) due to the negative revaluation of the biological assets in amount of USD 19.2 mln. EBITDA was negative and totaled to USD 15.5 mln (6M 2021: USD 3.5 mln).

Net Loss

Net loss for the reporting period equaled USD 18.0 mln demonstrating (6M 2021: USD 1.6 mln).

Marginality

For the 6M 2022 the margins were as follows:

EBITDA Margin	(27.5)%	(2021: 5.6%);
Gross Margin	(18.4)%	(2021: 10.8%);
Net Margin	(31.8)%	(2021: 2.6%).

Sales Structure by Revenue Profitability Dynamics

FINANCIAL POSITION

Assets, liabilities and equity

As of 30 June 2022 total assets amounted to USD 115.1 (2021: USD 141.2 mln). The 18% decrease is mainly accounted for by the changes in fair value of biological assets (-USD 19.7 mln Y-o-Y).

Total equity as of 30 June 2022 amounted to USD 84.6 million against USD 110.2 as of 30 June 2021.

Loans and borrowings

Total interest-bearing liabilities as of 30 June 2022 equaled USD 12.5 mln (30 June 2021: USD 11.0 mln). Alongside further partial repayment of the export loans in the reporting period (~USD 2.7 mln), the amount of new or refinanced loans was nearly USD 3.2 mln.

Net debt as of 30 June 2022 totaled to USD 8.8 mln (30 June 2021: USD 8.9 mln).

Cash and cash equivalents as of the reporting date totaled to USD 3.7 mln (30 June 2021: USD 2.1 mln).

Cash flow

Operating cash flow for the 6M 2022 was USD 5.5 mln (6M 2021: USD 9.6 mln).

Net cash flow used in investment activities reached USD 4.3 mln (6M 2021: USD 9.6 mln).

Net cash flow used in financing activities amounted to USD 0.2 mln (6M 2021: USD 0.4 mln).

Investment Program

On the background of the ongoing Russian military invasion in Ukraine COVID and overall unfavorable situation in the national economy the management made the decision to put the investment program on hold.

Thus, only minor investments in the production facilities and infrastructure were made in the reporting period.

ALTERNATIVE PERFORMANCE MEASURES

In reporting financial information, the Group presents alternative performance measures, "APMs", which are not defined or specified under the requirements of IFRS. The Group believes that these APMs, which are not considered to be a substitute for or superior to IFRS measures, provide stakeholders with additional helpful information on the performance of the business.

The following APM's are used in the present report:

APM	Definition and calculation
Gross Profit (1)	Total revenues less total cost of the goods sold less changes in fair value of biological assets
Operating Profit (2)	Total revenues less total cost of the goods sold, less changes in fair value of biological assets, less operating expenses and less depreciation & amortization
EBITDA (3)	Profit from operating activities adding back amortization and de preciation
EBITDA margin (4)	EBITDA divided by revenue during the reporting period
Gross profit margin (5)	Gross profit as presented in the financial statements divided by revenue during the reporting period
Net profit margin (6)	Net profit as presented in the financial statements divided by revenue during the reporting period
Net debt (7)	Debt Liabilities less cash and cash equivalents
Adjusted EBITDA (8)	EBITDA adding back changes in fair value of biological assets
Adjusted Net Profit (9)	Net Profit adding back changes in fair value of biological assets

Reconciliation of APM to the items presented in the financial statements (in USD mln):

(1) Gross Profit/Loss	6M 2021	6M 2022
Revenue	61.4	56.6
Cost of sales	(53.1)	(47.8)
Changes in fair value of biological assets	(1.7)	(19.2)
Gross profit/Loss	6.6	(10.4)

ALTERNATIVE PERFORMANCE MEASURES

Reconciliation of APM to the items presented in the financial statements (in USD mln): (continued)

(2) Operating Profit	6M 2021	6M 2022
Revenue	61.4	56.6
Cost of sales	(53.1)	(47.8)
Changes in fair value of biological assets	(1.7)	(19.2)
Other operating income	0.2	0.3
Selling and distribution costs	(3.6)	(5.5)
General and administrative expenses	(1.8)	(1.6)
Other operating expenses	(0.1)	(0.3)
Operating profit/Loss	1.4	(17.6)
(3) EBITDA and (4) EBITDA margin	6M 2021	6M 2022
Operating profit	1.4	(17.6)
Depreciation and amortization	2.1	2.0
EBITDA	3.5	(15.5)
Revenue	61.4	56.6
EBITDA margin	6%	(27.5%)
(5) Gross margin	6M 2021	6M 2022
Gross profit/Loss	6.6	(10.4)
Revenue	61.4	56.6
Gross margin	11%	(18.4%)
(6) Net margin	6M 2021	6M 2022
Net profit/Loss	1.6	(18.0)
Revenue	61.4	56.6
Net margin	3%	(31.8%)
(7) Net Debt	30 June 2021	30 June 2022
Interest-bearing loans and other financial liabilities	11.0	12.5
Cash and cash equivalents	2.1	3.7
Net Debt	8.9	8.8
(8) Adjusted EBITDA and (9) Adjusted Net Profit	30 June 2021	30 June 2022
Changes in fair value of biological assets	(1.7)	(19.2)
EBITDA	3.5	(15.5)
Net Profit/Loss	1.6	(18.0)
Adjusted EBITDA	5.1	3.7
Adjusted Net Profit	3.3	1.2

OTHER SUBSTANTIAL INFORMATION

Principal risks and uncertainties

The management of the Group on a regular basis take all steps to monitor, identify and mitigate risks that may have adverse effect on the operations and believe that the main risks and uncertainties indicated in the Group's annual report 2021 (p.20-24) will remain relevant for the remaining six months of the financial year.

declaration of income from non-recurring or extraordinary activities

In the first half of 2022 the Company did not receive any income from non-recurring or extraordinary activities.

indication of important events that have occurred in the reporting period

The full-scale invasion of Ukraine launched by the Russian armed forces on 24 February 2022 caused multiple humanitarian, economic and political effects reaching out far beyond the borders of the affected regions. Continuing military attacks create threats of massive casualties among civilian population and further damages of vital infrastructure throughout the country. Disruption of normal economic activity will have numerous implications for the Ukraine-based businesses – varying from the humanitarian issues to supply and distribution – that at the moment cannot be precisely measured and will become more tangible as the situation evolves.

As of 30 June 2022 the companies of the Group keep operating in the pre-war mode with a series of modifications applied to the supply, production and distribution cycle.

Staff and management

The Group places top priority on the personnel's health and safety issues. All possible action has been taken to minimize the existing threats and support the staff during this dramatic period. The HR department on a daily basis keeps record of the location of each employee to make sure that everyone is in a safe place. All administrative staff has been granted the option to work remotely. The Group closely monitors the needs of the team and promptly reacts to them within the limits of its capabilities. Forty men from the company's staff were called up to the military service.

The Group's management continue to fulfill their duties without interruptions.

Production facilities

The Group's major production facilities are located in Kyiv region, in Fastivskyi and Bilotserkivskyi districts, where no severe hostilities took place. The poultry houses in Vasilkiv and Stavyshche, as well as the eggprocessing factory in Vasilkiv, remain physically undamaged and keep operating.

The egg-processing factory in Makariv (Buchanskiy district) had been temporarily shut down until the city was de-occupied by the Ukrainian military forces in the end of March. The subsequent inspection of the factory showed signs of critical damages of several buildings and less severe damages of administrative buildings and engineering networks. Partial repair made it possible for the factory to resume operations to the extent possible under the circumstances. The scope and cost of work required to restore the prewar capacity shall be disclosed once available.

The supporting facilities accommodating hatchery, poultry houses for parent flock and young layers have not been affected and are being used in accordance with the technological process.

OTHER SUBSTANTIAL INFORMATION

Flock and egg production

The layers' flock has been preserved at the level stipulated by the pre-war production plan. Minor modifications have been introduced in order to optimize egg production volume and offset the effect of oversupply on the local market caused by the export collapse in the first weeks of the military action.

Egg processing and egg products output

Disruption in operations of many Ukrainian food manufacturing companies and HORECA naturally led to the decrease of demand for egg products, which is why smaller volumes of eggs have been allocated for processing since the end of February.

Supply chain

The Group has historically relied on the suppliers located in the central part of Ukraine, which implies efficient logistics and reasonably prompt deliveries to the production sites. Major contractors have not been affected by the hostilities and continue to fulfill their contractual obligations.

Distribution

The military action had no critical impact on the local distribution. The main distribution channel for the egg segment is the large national retail chains. Geographically the sales are concentrated in the central part of the country. The share of sales in the most affected regions does not exceed 10%. The loss of the market in the east and south of the country could supposedly be offset by the increasing demand in the central and western Ukraine, where large numbers of internally relocated people temporarily reside.

Exports

Since the start of the military campaign, the Group faced significant obstacles to export activities due to the serious disruptions in logistics. In particular, seizure of Odessa port operations cut access to the Middle East markets, where the commodities were shipped by sea. Overland deliveries to the EU countries resumed in early April after the specific license had been issued to the company.

Imports

The Group's production companies depend on imports in terms of certain feed mix supplements, vaccines, spare parts of production equipment. These items are included in the list of "critical imported goods" (as defined in the Cabinet of Ministers of Ukraine's Resolution No. 153 dated 24 February 2022) and there are no restrictions for their delivery to Ukraine. The management also take steps to select adequate substitutes in the local market.

related parties' transactions

In the reporting period no related parties' transactions occurred. Respective disclosure can be found in Note 22 to the consolidated condensed interim financial statements.

………………………………… Borys Bielikov Chief Executive Officer, Executive Director

………………………………… Vitalii Veresenko Chairman of the Board, Non-executive Director

………………………………… Karen Arshakyan Head of Audit Committee, Non-executive Director

………………………………… Markiyan Markevych Non-executive Director ………………………………… Vitalii Sapozhnik Chief Financial Officer

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE 6 MONTHS ENDED 30 JUNE 2022

(IN USD THOUSAND, UNLESS OTHERWISE STATED)

		6 months ended 6 months ended
	Note	30 June 2022	30 June 2021
		(unaudited)	(unaudited)
Revenue from contracts with customers	8	56 575	61 416
Changes in fair value of biological assets	14	(19 219)	(1 665)
Cost of sales		(47 750)	(53 127)
Gross profit		(10 394)	6 624
Other operating income	9	272	220
Selling and distribution costs		(5 525)	(3 639)
Administrative expenses		(1 619)	(1 779)
Other operating expenses	10	(304)	(58)
Operating profit		(17 570)	1 368
Finance costs		(419)	(189)
Finance income		10	451
Profit before tax		(17 979)	1 630
Income tax expense	13	-	(10)
Profit for the period		(17 979)	1 620
Other comprehensive income
Exchange differences on translation to presentation cur		(7 288)	4 139
rency
Other comprehensive income for the period, net of tax		(7 288)	4 139
Total comprehensive income for the period, net of tax		(25 267)	5 759
Profit for the period attributable to:
Equity holders of the parent company		(17 825)	1 844
Non-controlling interests		(154)	(224)
Total profit for the period		(17 979)	1 620
Other comprehensive income attributable to:
Equity holders of the parent company		(7 252)	4 134
Non-controlling interests		(36)	5
Total other comprehensive income		(7 288)	4 139
Other comprehensive income attributable to:
Equity holders of the parent company		(25 077)	5 978
Non-controlling interests		(190)	(219)
Total comprehensive income		(25 267)	5 759

Earnings per share:
Equity holders of the parent company		6 000 000	6 000 000
Basic and diluted, profit for the period attributable to ordinary equity
holders of the parent (USD per share)		(2,97)	0,31

…………………………………	…………………………………	…………………………………
Borys Bielikov	Vitalii Veresenko	Karen Arshakyan
Chief Executive Officer, Executive Director	Chairman of the Board, Non-executive Director	Non-executive Director	Head of Audit Committee,

………………………………… Markiyan Markevych Non-executive Director ………………………………… Vitalii Sapozhnik Chief Financial Officer

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

FOR THE 6 MONTHS ENDED 30 JUNE 2022

(IN USD THOUSAND, UNLESS OTHERWISE STATED)

	Note	30 June 2022 31 December 2021		30 June 2021
		(unaudited)	(audited)	(unaudited)
Assets
Non-current assets
Biological assets	14	23 270	45 079	43 697
Property, plant and equipment and intangible assets	15	41 138	46 383	47 950
Deferred tax assets		26	28	1
Other non-current assets		-	-	11
Total non-current assets		64 434	91 490	91 659
Current assets
Inventories	16	16 578	13 022	15 217
Biological assets	14	16 901	15 459	16 208
Trade and other receivables	17	12 315	15 471	14 419
Prepayments to suppliers		1 159	3 114	1 514
Prepayments for income tax		26	28	28
Cash and cash equivalents	18	3 710	2 435	2 125
Total current assets		50 689	49 529	49 511
Total assets		115 123	141 019	141 170
Equity and liabilities
Equity
Issued capital	19	63	68	71
Share premium		30 933	30 933	30 933
Foreign currency translation reserve		(133 159)	(125 912)	(125 817)
Retained earnings		204 323	202 633	202 633
Result for the period		(17 825)	1 690	1 844
Equity attributable to equity holders of the parent		84 335	109 412	109 664
Non-controlling interests	7	287	477	499
Total equity		84 622	109 889	110 163
Non-current liabilities
Interest-bearing loans and other financial liabilities	20	4 586	7 141	6 825
Deferred tax liability		311	334	324
Total non-current liabilities		4 897	7 475	7 149
Current liabilities
Trade and other payables	21	14 303	14 391	15 608
Deferred income		2 648	2 981	3 134
Advances received		710	543	928
Interest-bearing loans and other financial liabilities	20	7 943	5 740	4 188
Total current liabilities		25 604	23 655	23 858
Total liabilities		30 501	31 130	31 007
Total equity and liabilities		115 123	141 019	141 170

………………………………… Borys Bielikov Chief Executive Officer, Executive Director

………………………………… Vitalii Veresenko Chairman of the Board, Non-executive Director

………………………………… Karen Arshakyan Head of Audit Committee, Non-executive Director

………………………………… Markiyan Markevych Non-executive Director ………………………………… Vitalii Sapozhnik Chief Financial Officer

6M 2022 14

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE 6 MONTHS ENDED 30 JUNE 2022 (IN USD THOUSAND, UNLESS OTHERWISE STATED)

	Issued capital	Share premium	Foreign currency translatio n reserve	Retained earnings	Result for the period	Total	Non controlling interests	Total equity
As at 31 December 2020 (audited)	74	30 933	(129 954)	199 931	2 702	103 686	718	104 404
Profit for the period	-	-	-	-	1 844	1 844	(224)	1 620
Other comprehensive income	-	-	4 134	-	-	4 134	5	4 139
Total comprehensive income	-	-	4 134	-	1 844	5 978	(219)	5 759
Allocation of prior period result	-	-	-	2 702	(2 702)	-	-	-
Dividends	-	-	-	-	-	-	-	-
Exchange differences	(3)	-	3	-	-	-	-	-
As at 30 June 2021 (unaudited)	71	30 933	(125 817)	202 633	1 844	109 664	499	110 163
As at 31 December 2021 (audited)	68	30 933	(125 912)	202 633	1 690	109 412	477	109 889
Profit for the period	-	-	-	-		(17 825) (17 825)	(154)	(17 979)
Other comprehensive income	-	-	(7 252)	-	-	(7 252)	(36)	(7 288)
Total comprehensive income	-	-	(7 252)	-		(17 825) (25 077)	(190)	(25 267)
Allocation of prior period result	-	-	-	1 690	(1 690)	-	-	-
Dividends	-	-	-	-	-	-	-	-
Exchange differences	(5)	-	5	-	-	-	-	-
As at 30 June 2022 (unaudited)	63	30 933	(133 159)	204 323	(17 825)	84 335	287	84 622

………………………………… Borys Bielikov Chief Executive Officer, Executive Director

………………………………… Vitalii Veresenko Chairman of the Board, Non-executive Director

………………………………… Karen Arshakyan Head of Audit Committee, Non-executive Director

………………………………… Markiyan Markevych Non-executive Director ………………………………… Vitalii Sapozhnik Chief Financial Officer

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE 6 MONTHS ENDED 30 JUNE 2022

(IN USD THOUSAND, UNLESS OTHERWISE STATED)

	Note	6 months ended 30 June 2022 (unaudited)	6 months ended 30 June 2021 (unaudited)
Operating activities
Profit before tax		(17 979)	1 630
Non-cash adjustment to reconcile profit before tax to net cash flows:
Depreciation of property, plant and equipment and amortisation of intangi ble assets	11	2 040	2 097
Net change in fair value of biological assets	14	19 219	1 665
Disposal of property, plant and equipment		(18)	2
Disposal of biological assets		1 453	1 219
Finance income		(10)	(451)
Finance costs		419	189
Recovery of assets previously written-off	9	(48)	-
Government subsidies		(165)	(139)
Impairment of doubtful accounts receivable and prepayments to suppliers	10	-	36
Working capital adjustments:
Decrease in trade and other receivables		2 240	1 754
Decrease in prepayments to suppliers		1 800	(226)
Decrease in other non-current assets		-	9
Increase in inventories		(4 573)	(1 512)
Increase in trade and other payables and advances received		1 135	3 372
Net cash flows from operating activities		5 513	9 645
Investing activities
Purchase of property, plant and equipment		(194)	(211)
Increase in biological assets	14	(4 449)	(9 342)
Proceeds from sale of property, plant and equipment		356
Net cash flows used in investing activities		(4 287)	(9 553)
Financing activities
Proceeds from borrowings		3 177	1 790
Repayment of borrowings		(2 686)	(1 274)
Interest received		10	9
Interest paid		(304)	(79)
Government subsidies		32	-
Net cash flows used in financing activities		229	446
Net (decrease)/increase in cash and cash equivalents		1 455	538
Effect from translation into presentation currency		(180)	(39)
Cash and cash equivalents at 01 January		2 435	1 626
Cash and cash equivalents at 30 June		3 710	2 125

For translating results and financial position into a presentation currency, the Group applies IAS 21 "The Effects of Changes in Foreign Exchange Rates". Procedures and rules applied by the Group are specified in Note 2.3.

………………………………… Borys Bielikov Chief Executive Officer, Executive Director

………………………………… Vitalii Veresenko Chairman of the Board, Non-executive Director

………………………………… Karen Arshakyan Head of Audit Committee, Non-executive Director

………………………………… Markiyan Markevych Non-executive Director ………………………………… Vitalii Sapozhnik Chief Financial Officer

1. Corporate information

Ovostar Union Public Company Limited (referred to herein as the "Company") is a limited liability company incorporated on 22 March 2011 in Amsterdam under the laws of the Netherlands. Following resolution of the Extraordinary Meeting of Shareholders held in Amsterdam on 30 August 2018 the Company was redomiciled to Cyprus and on 29 November 2018 was registered with the Register of Companies of the Republic of Cyprus as a company continuing in the Republic of Cyprus. As of 31 March 2021 the Company's registered address is 22 IerotheouStreet, Strovolos, Nicosia 2028, Cyprus.

Principal activities of the Group include egg production, distribution, egg products manufacturing and production of related products. The largest shareholder of the Company is Prime One Capital Ltd., a Cyprus based company whose principal activity is the holding of ownership interests in its subsidiary and strategic management.

The Group operates through a number of subsidiaries in Ukraine, Latvia, United Arab Emirates and British Virgin Islands (the list of the subsidiaries is disclosed in Note 7) and has a concentration of its business in Ukraine, where its production facilities are located. Subsidiary companies are registered under the laws of Ukraine, British Virgin Islands, Latvia and United Arab Emirates. The registered address and principal place of business of the subsidiary companies in Ukraine is 34 Petropavlivska Street, Kyiv, Ukraine.

Information on other related party relationships of the Group is provided in Note 22.

The consolidated condensed interim financial statements for the six month ended 30 June 2022 were authorized by The Board of Directors on 26 August 2022.

2. Basis of preparation

2.1. Statement of compliance and basis of measurement

The consolidated financial statements are prepared in accordance with International Financial Reporting Standards as adopted by the European Union ("IFRS EU" hereinafter).

The companies of the Group maintain their accounting records under Ukrainian Accounting Standards ("UAS" hereinafter). UAS principles and procedures may differ from those generally accepted under IFRS EU. Accordingly, the consolidated financial statements, which have been prepared from the Group entities' UAS records, reflect adjustments necessary for such financial statements to be presented in accordance with IFRS EU.

The consolidated financial statements have been prepared on the historical cost basis except for the following items, which are measured on an alternative basis on each reporting date.

Biological assets Fair value less costs to sell

Items Measurement bases

Details of the Group accounting policies are included in Note 5.

2.2. Going concern basis

On February 24, 2022, russian troops launched a military invasion of Ukraine, which led to a full-scale war on the territory of the Ukrainian state. Focusing on the continuity and sustainability of its business and maintaining value for all stakeholders, the Group has focused on such key areas as the safety of its employees and the food security of the country, giving priority to the uninterrupted supply of the population of Ukraine with egg products.

Having examined the existing and potential implications of the war for the Ukraine located businesses, the management of the Group have identified several points of specific concern that require careful analysis and assessment. They include, but are not limited to, the following:

risks related to the personnel safety;
risk of physical destruction of the production assets;
risks of disruption of the supply and distribution chains;
risk of liquidity and limited access to financing;

The Group places top priority on the personnel's health and safety issues. All possible action has been taken to minimize the existing threats and support the staff during this dramatic period. The HR department on a daily basis keeps record of the location of each employee to make sure that everyone is in a safe place. All administrative staff has been granted the option to work remotely. The Group closely monitors the needs of the team and promptly reacts to them within the limits of its capabilities. Forty men from the Group's staff were called up to the military service.

The Group's management continue to fulfill their duties without interruptions.

The Group fully complies with all sanctions rules and regulations regarding Russia and Belarus, including those introduced or published by various countries and organizations. In addition, the Group refrains from contacting individuals or entities on the sanctions list. In this situation, the Group does not expect any impact on the supply chain and payment flow

The currently known impacts of the War on the Group are:

the Group's major production facilities are located in Kyiv region, in Fastivskyi and Bilotserkivskyi districts, where no severe hostilities took place. The poultry houses in Vasilkiv and Stavyshche, as well as the egg-processing factory in Vasilkiv, remain physically undamaged and keep operating;
The egg-processing factory in Makariv (Buchanskiy district) had been temporarily shut down until the city was deoccupied by the Ukrainian military forces in the end of March. The subsequent inspection of the factory showed signs of critical damages of several buildings and less severe damages of administrative buildings and engineering networks. Partial repair made it possible for the factory to resume operations to the extent possible under the circumstances. The scope and cost of work required to restore the pre-war capacity shall be disclosed once available;
the supporting facilities accommodating hatchery, poultry houses for parent flock and young layers have not been affected and are being used in accordance with the technological process;
all Group inventory is in good condition and in safe storage;
the Group has historically relied on the suppliers located in the central part of Ukraine, which implies efficient logistics and reasonably prompt deliveries to the production sites. Major contractors have not been affected by the hostilities and continue to fulfill their contractual obligations;
the military action had no critical impact on the local distribution. The main distribution channel for the egg segment is the large national retail chains. Geographically the sales are concentrated in the central part of the country. The share of sales in the most affected regions does not exceed 10%;
export sales reduced significantly. Since the start of the military campaign, the Group faced significant obstacles to export activities due to the serious disruptions in logistics. In particular, seizure of Odessa port operations cut access to the Middle East markets, where the commodities were shipped by sea. Overland deliveries to the EU countries resumed in early April after the specific license had been issued to the company. Also on June, the Decision of the European Union on the abolition of duties on Ukrainian goods for a year came into force(see note 23)
the Group's production companies depend on imports in terms of certain feed mix supplements, vaccines, spare parts of production equipment. These items are included in the list of "critical imported goods" (as defined in the Cabinet of Ministers of Ukraine's Resolution No. 153 dated 24 February 2022) and there are no restrictions for their delivery to Ukraine. The management also take steps to select adequate substitutes in the local market;

sufficient recourses to meet its contractual obligations. Interest bearing liabilities towards the banks are served timely.

The Group has taken the following actions in response to the current situation:

optimized utilization of production facilities to meet domestic demand and export orders;
the group has enough inventory for the production and sale of its products, as well as human resources in the foreseeable future;
selling, general and administrative and other operating expenses, as well as CAPEX, have been reduced to the minimum required to meet the primary needs of the Group's core business;
the Directors have decided not to declare a final dividend for the 2021 financial year;
the loss of the market in the east and south of the country is expected to be offset by increased demand in central and western Ukraine, where a large number of internally displaced persons temporarily reside;
the prescheduled repayments of main debt have been planned to be rescheduled to a later dates based on mutual agreements with the banks;
as of date of this report the companies of the Group had unutilized fully collateralized credit facilities in total amount of USD 5 000 thousand available on demand. One of the reasons for non-drawing of which is the reduction in lending to Ukrainian borrowers.

There is a risk of breach of financial covenants under the loan agreement with the OTP for year ended December 31,

2022, based on negative financial results for February-June 2022. In the event of such a breach of the OTP's financial covenants, the borrower is entitled to demand early repayment of the loan. Management plans to ask the OTP to provide a letter Weaver to ease its commitment to enforce financial covenants by 2022. The amount of cash flow, which ensures the absence of liquidity gaps, depends significantly on the OTP's intention not to require early repayment.

Management has prepared and reviewed, together with the directors, updated financial projections, including cash flow projections, taking into account the most likely and possible negative scenarios for the continued impact of the war on the business.

These forecasts were based on the following key assumptions:

management will be able to use the cash from the approved credit lines to finance operations.
the further development of the war and the military invasion of Ukraine will allow the use of most of the Group's production capacity;
the Group will be able to purchase a sufficient amount of agricultural products for poultry feed;
remaining road logistic routes will continue to be available;
Egg production for 2022 will be 1.452 million (1,691 million in 2021);

Despite the existing uncertainties arising from the future development of the military invasion, the management believes the above described analysis gives grounds to state that during at least 12 months after the date of the present report the Group will be able to realize its assets and discharge its liabilities in the normal course of business, thus going concern assumptionis applied to the financial statements for the year ended 30 June 2022.

2.3. Functional and presentation currency.

The functional currency of the Company is U.S. dollar (USD). The consolidated financial statements are presented in the Company's functional currency, that is, U.S. dollar (USD). The operating subsidiaries have Ukrainian Hryvnia (UAH) as their functional currency. All values are rounded to the nearest thousands, except when otherwise is indicated.

The USD has been selected as the presentation currency for the Group as: (a) management of the Group manages business risks and exposures, and measures the performance of its businesses in the USD; (b) the USD is widely used as a presentation currency of companies engaged primarily in agricultural; and (c) the USD is the most convenient presentation currency for non-Ukrainian users of these IFRS consolidated financial statements.

The Group translates its results and financial position into the presentation currency as follows:

assets and liabilities, as well as the issued capital, for each statement of financial position presented (i.e. including comparatives) shall be translated at the closing rate at the date of that statement of financial position;
income and expenses for each statement of comprehensive income or separate income statement presented (i.e. including comparatives) shall be translated at exchange rates at the dates of the transactions; and
- all resulting exchange differences shall be recognized in other comprehensive income.
During six month ended 30 June 2022 and 2021, the exchange rate had significant fluctuations. Consistent with IAS

21, if exchange rates fluctuate significantly, the use of the average rate for a period is inappropriate. Considering significant depreciation of Ukrainian currency against major foreign currencies and seasonality of sales, Management of the Group decided to translate income and expense items at average quarterly rates. On consolidation, the assets and liabilities of the subsidiaries are translated at exchange rates prevailing on the reporting date. Income and expense items are translated at the average quarterly rates, unless the exchange rates fluctuate significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising, if any, are recognized in "Other comprehensive income" and accumulated in the "Foreign currency translation reserve".

Relevant exchange rates are presented as follows:

	Closing rate as at
	30 June 2022	31 December 2021
	(unaudited)	(audited)	(unaudited)
USD/UAH	29,2549	27,2782	27,1763
EUR/UAH	30,7776	30,9226	32,3018
USD/PLN	4,4847	4,0447	3,8035
USD/EUR	0,9570	0,8815	0,8418

	Average rate
1- 2- st st	1-st quarter 2022	2-nd quarter 1-st quarter 2021 2022		2-nd quarter 2021
	(unaudited)	(unaudited)	(unaudited)	(unaudited)
USD/UAH	28,5545	29,2549	27,9694	27,5910
EUR/UAH	32,2788	31,1984	33,7569	33,2332
USD/PLN	4,1269	4,3655	3,7675	3,7582
USD/EUR	0,8915	0,9389	0,8296	0,8300

3. Basis of consolidation

The consolidated financial statements comprise the financial statements of the Group and its subsidiaries as at 30 June 2022. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if, and only if, the Group has:

power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee);
exposure, or rights, to variable returns from its involvement with the investee;
the ability to use its power over the investee to affect its returns.

Generally, there is a presumption that a majority of voting rights result in control. To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

the contractual arrangement with the other vote holders of the investee;
rights arising from other contractual arrangements;
the Group's voting rights and potential voting rights.

The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary.

Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group's accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.

If the Group loses control over a subsidiary, it derecognizes the related assets (including goodwill), liabilities, non- controlling interest and other components of equity while any resultant gain or loss is recognized in profit or loss. Any investment retained is recognized at fair value.

4. Use of estimates and assumptions

The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the end of the reporting period. However, due to uncertainty about these estimates, actual results recorded in future periods may differ from such estimates.

These consolidated financial statements include management's estimates regarding the value of assets, liabilities, revenues, expenses, and recognized contractual obligations. These estimates mainly include:

4.1. Impairment of property, plant and equipment

In accordance with IAS 36 "Impairment of Assets" the Group reviews the carrying amount of non-current tangible assets (mainly property, plant and equipment) to identify signs of impairment of these assets.

If there is an indication that an asset may be impaired, the Group uses a model of strategic planning in order to calculate the discounted cash flows (using the "value in use" method, as defined in IAS 36) and, thus, assess the recoverability of the carrying amount of property, plant and equipment. The model was based on budgets and forecasts approved by the management for the next 5 years.

Expected future cash flows reflect long-term production plans formed on the basis of past experience and market expectations. The plans take into account all relevant characteristics of poultry farming, including egg production, volume of egg processing, prices for main components of mixed fodder. Thus, the production capacity is the basis for forecasting the future production volume for each subsequent year and related production costs.

Levels of costs included in projected cash flows are based on current long-term production plans. When conducting impairment testing, recent levels of costs are taken into account, as well as the expected cost changes based on the current condition of operating activities and in accordance with the requirements of IAS 36. IAS 36 provides a number of restrictions on future cash flows, which may be recognized in respect of future restructuring and capital modernization expenses.

Below are the key assumptions that formed the basis for forecasting future cash flows in the models:

prices for main components of mixed fodder are based on internal forecasts of the Group's management;
production data (production of eggs, safety of livestock, meat production volume, production of egg products) based on internal forecasts of the Group's management from past experience;
selling prices for eggs, egg products and poultry meat are based on forecasts of the Group's management and market expectations.

Management believes that calculations of the recoverable amount are most sensitive to changes in such assumptions as the price of poultry meat, price of eggs and eggs product, price of poultry fodder and production data. Management believes that any reasonably possible change in key assumptions on which the recoverable amount of the Group is based will not cause the excess of carrying amount of the Group over its recoverable amount.

Application of IAS 36 requires extensive judgments by the management regarding estimates and assumptions related to future cash flows and discount rate. Given the nature of the current global economic environment, such assumptions and estimates have a high degree of uncertainty. Therefore, other similar assumptions may lead to significantly different results.

4.2. Fair value of biological assets

Estimation of fair value of biological assets is based on the discounted cash flow model. The fair value of biological assets might be affected by the fact that the actual future cash flows will differ from the current forecast, which typically occurs as a result of significant changes in any factors or assumptions used in the calculations.

Among such factors are:

differences between actual prices and price assumptions used in estimating net realizable value of eggs;
changes in productivity of laying hens;
unforeseen operational problems inherent in the branch specificity;
age of hens at the end of the reporting period;
changes in production costs, costs of processing and products sales, discount and inflation rates and exchange rates that could adversely affect the fair value of biological assets.

The key assumptions concerning biological assets based on discounted cash flow approach are presented as follows:

cost planning at each stage of poultry farming will remain constant in future periods;
egg production volume will not be significantly changed;
egg sale price in future periods;
long-term inflation rate of Ukrainian UAH in future periods;
discount rate for determining the present value of future cash flows expected from the biological assets (Note 17).

Management determined that calculations of the fair value of biological assets are the most sensitive to changes in such assumptions as the volume of egg production, cost planning and prices of eggs, eggs product and poultry meat. Management believes that any reasonably possible change in key assumptions will not cause any significant change in the

fair value of biological assets.

All assets and liabilities for which fair value is measured or disclosed in the consolidated financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.
Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

Although some of these assumptions are obtained from published market data, the majority of these assumptions are estimated based on the Group's historical and projected results.

Fair value related disclosures for financial instruments and non-financial assets that are measured at fair value or where fair values are disclosed, are summarized in Notes 17, 32.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

In the principal market for the asset or liability. Or
In the absence of a principal market, in the most advantageous market for the asset or liability.

4.3. Expected credit losses

Financial assets of the Group that are subject to IFRS 9's expected credit loss model are represented by trade receivables. The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade and other receivables and contract assets. Cash and cash equivalents are also subject to the impairment requirements of IFRS 9. No impairment of cash and cash equivalents was identified.

4.4. Useful lives of property, plant and equipment

The Group estimates useful lives of property, plant and equipment at least at the end of each financial year and, if expectations differ from previous estimates, changes are recorded as changes in accounting estimates in accordance with IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors". These estimates can have a significant impact on the carrying amount of property, plant and equipment and depreciation expenses during the period.

4.5. Deferred tax assets

Deferred tax assets are recognized for all unused tax losses to the extent that the inflow of taxable profit is possible, at the expense of which these losses may be implemented. Significant judgments are required from the management in determining the amount of deferred tax assets that can be recognized on the basis of the possible terms of receipt and the level of future taxable profit together with the future tax planning strategy.

5. Summary of significant accounting policies

5.1. Recognition and measurement of financial instruments

Financial instruments: key measurement terms

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The best evidence of fair value is the price in an active market. An active market is one in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

Fair value of financial instruments traded in an active market is measured as the product of the quoted price for the individual asset or liability and the number of instruments held by the entity. This is the case even if a market's normal daily trading volume is not sufficient to absorb the quantity held and placing orders to sell the position in a single transaction might affect the quoted price.

Valuation techniques such as discounted cash flow models or models based on recent arm's length transactions or consideration of financial data of the investees are used to measure fair value of certain financial instruments for which external market pricing information is not available. Fair value measurements are analysed by level in the fair value hierarchy as follows:

Level 1: Measurements at quoted prices (unadjusted) in active markets for identical assets or liabilities,
Level 2: Valuations techniques with all material inputs observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices), and
Level 3: Valuations not based on solely observable market data (that is, the measurement requires significant unobservable inputs).

Transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal of a financial instrument. An incremental cost is one that would not have been incurred if the transaction had not taken place. Transaction costs include fees and commissions paid to agents (including employees acting as selling 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.

Amortized cost is the amount at which the financial instrument was recognized at initial recognition less any principal repayments, plus accrued interest, and for financial assets less any write-down for incurred impairment losses. Accrued interest includes amortization of transaction costs deferred at initial recognition and of any premium or discount to the maturity amount using the effective interest method. Accrued interest income and accrued interest expense, including both accrued coupon and amortized discount or premium (including fees deferred at origination, if any), are not presented separately and are included in the carrying values of the related items in the consolidated statement of financial position.

The effective interest method is a method of allocating interest income or interest expense over the relevant period, so as to achieve a constant periodic rate of interest (effective interest rate) on the carrying amount. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts (excluding future credit losses) through the expected life of the financial instrument or a shorter period, if appropriate, to the gross carrying amount of the financial instrument. The effective interest rate discounts cash flows of variable interest instruments to the next interest repricing date, except for the premium or discount which reflects the credit spread over the floating rate specified in the instrument, or other variables that are not reset to market rates. Such premiums or discounts are amortized over the whole expected life of the instrument. The present value calculation includes all fees paid or received between parties to the contract that are an integral part of the effective interest rate.

Financial instruments: initial recognition

Financial instruments at fair value through profit or loss are initially recorded at fair value. All other financial instruments are initially recorded at fair value adjusted for transaction costs. Fair value at initial recognition is best evidenced by the transaction price. A gain or loss on initial recognition is only recorded if there is a difference between fair value and transaction price which can be evidenced by other observable current market transactions in the same instrument or by a valuation technique whose inputs include only data from observable markets. After the initial recognition, an ECL allowance is recognized for financial assets measured at amortized cost and investments in debt instruments measured at fair value through other comprehensive income, resulting in an immediate accounting loss.

All purchases and sales of financial assets that require delivery within the time frame established by regulation or market convention are recorded at trade date, which is the date on which the Group commits to deliver a financial asset. All other purchases are recognized when the entity becomes a party to the contractual provisions of the instrument.

The Group uses discounted cash flow valuation techniques to determine the fair value of loans to related parties that are not traded in an active market. Differences may arise between the fair value at initial recognition, which is considered to be the transaction price, and the amount determined at initial recognition using a valuation technique with level 3 inputs. If any differences remain after calibration of model inputs, such differences are amortized on a straight-line basis over the term of the currency swaps, loans to related parties. The differences are immediately recognized in profit or loss if the valuation uses only level 1 or level 2 inputs.

5.2. Financial assets

Financial assets: Classification and subsequent measurement: measurement categories

The Group classifies financial assets in the following measurement categories: fair value through profit and loss

(FVTPL), fair value through other comprehencive income (FVOCI) and amortized cost (AC). The classification and subsequent measurement of debt financial assets depends on:

The Group's business model for managing the related assets portfolio and
the cash flow characteristics of the asset.

As at 30 June 2022 and 30 June 2021 the Group did not hold financial assets at FVOCI.

Financial assets: Classification and subsequent measurement: business model

The business model reflects how the Group manages the assets in order to generate cash flows - whether the Group's objective is:

solely to collect the contractual cash flows from the assets ("hold to collect contractual cash flows") or
to collect both the contractual cash flows and the cash flows arising from the sale of assets ("hold to collect contractual cash flows and sell") or, if neither of (i) and (ii) is applicable, the financial assets are classified as part of "other" business model and measured at FVTPL.

Business model is determined for a group of assets (on a portfolio level) based on all relevant evidence about the activities that the Group undertakes to achieve the objective set out for the portfolio available at the date of the assessment. Factors considered by the Group in determining the business model include the purpose and composition of a portfolio, past experience on how the cash flows for the respective assets were collected, how risks are assessed and managed, how the assets' performance is assessed and how managers are compensated.

Financial assets: Classification and subsequent measurement: cash flow characteristics

Where the business model is to hold assets to collect contractual cash flows or to hold contractual cash flows and sell, the Group assesses whether the cash flows represent solely payments of principal and interest ("SPPI"). Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are consistent with the SPPI feature. In making this assessment, the Group considers whether the contractual cash flows are consistent with a basic lending arrangement, i.e. interest includes only consideration for credit risk, time value of money, other basic lending risks and profit margin.

Where the contractual terms introduce exposure to risk or volatility that is inconsistent with a basic lending arrangement, the financial asset is classified and measured at FVTPL. The SPPI assessment is performed on initial recognition of an asset and it is not subsequently reassessed.

The Group holds the trade receivables with the objective to collect contractual cash flows and therefore measures them subsequently at amortized cost using the effective interest method. Details about the Group's impairment policies and the expected credit loss measurement are provided in Note 31.

Financial assets: Reclassification

Financial instruments are reclassified only when the business model for managing the portfolio as a whole changes. The reclassification has a prospective effect and takes place from the beginning of the first reporting period that follows after the change in the business model. The entity did not change its business model during the current and comparative period and did not make any reclassifications.

Financial assets: Credit loss allowance for ECL

The Group assesses, on a forward-looking basis, the ECL for debt instruments measured at AC and FVOCI and for the exposures arising from loan commitments and financial guarantee contracts, for contract assets. The Group measures ECL and recognizes Net impairment losses on financial and contract assets at each reporting date. The measurement of ECL reflects:

an unbiased and probability weighted amount that is determined by evaluating a range of possible outcomes,
time value of money and
all reasonable and supportable information that is available without undue cost and effort at the end of each reporting period about past events, current conditions and forecasts of future conditions.

Financial assets of the Group that are subject to IFRS 9's new expected credit loss model are represented by trade receivables. The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade and other receivables and contract assets. Cash and cash equivalents are also subject to the impairment requirements of IFRS 9, the identified impairment loss was immaterial.

Financial assets: Write-off

Financial assets are written-off, in whole or in part, when the Group exhausted all practical recovery efforts and has concluded that there is no reasonable expectation of recovery. The write-off represents a derecognition event. Indicators that there is no reasonable expectation of recovery include:

the counterparty experiences a significant financial difficulty as evidenced by its financial information that the Group obtains;
the counterparty considers bankruptcy or a financial reorganisation;
there is adverse change in the payment status of the counterparty as a result of changes in the national or local economic conditions that impact the counterparty.

The Group may write-off financial assets that are still subject to enforcement activity when the Group seeks to recove amounts that are contractually due, however, there is no reasonable expectation of recovery.

Financial assets: Derecognition

The Group derecognizes financial assets when (a) the assets are redeemed or the rights to cash flows from the assets otherwise expire or (b) the Group has transferred the rights to the cash flows from the financial assets or entered into a qualifying passthrough arrangement whilst (i) also transferring substantially all the risks and rewards of ownership of the assets or (ii) neither transferring nor retaining substantially all the risks and rewards of ownership but not retaining control.

Control is retained if the counterparty does not have the practical ability to sell the asset in its entirety to an unrelated third party without needing to impose additional restrictions on the sale.

Financial assets: Modification

The Group sometimes renegotiates or otherwise modifies the contractual terms of the financial assets. The Group assesses whether the modification of contractual cash flows is substantial considering, among other, the following factors: any new contractual terms that substantially affect the risk profile of the asset (e.g. profit share or equity-based return), significant change in interest rate, change in the currency denomination, new collateral or credit enhancement that significantly affects the credit risk associated with the asset or a significant extension of a loan when the borrower is not in financial difficulties.

If the modified terms are substantially different, the rights to cash flows from the original asset expire and the Group derecognizes the original financial asset and recognizes a new asset at its fair value. The date of renegotiation is considered to be the date of initial recognition for subsequent impairment calculation purposes, including determining whether a SICR has occurred. The Group also assesses whether the new loan or debt instrument meets the SPPI criterion. Any difference between the carrying amount of the original asset derecognized and fair value of the new substantially modified asset is recognized in profit or loss, unless the substance of the difference is attributed to a capital transaction with owners.

In a situation where the renegotiation was driven by financial difficulties of the counterparty and inability to make the originally agreed payments, the Group compares the original and revised expected cash flows to assets whether the risks and rewards of the asset are substantially different as a result of the contractual modification. If the risks and rewards do not change, the modified asset is not substantially different from the original asset and the modification does not result in derecognition. The Group recalculates the gross carrying amount by discounting the modified contractual cash flows by the original effective interest rate (or creditadjusted effective interest rate for POCI financial assets), and recognizes a modification gain or loss in profit or loss.

5.3. Effective interest rate method

The effective interest rate method is used to calculate the amortized cost of a financial asset and distribute interest income during the relevant period. The effective interest rate is the rate that enables discounting of estimated future cash receipts through the expected life of a financial asset or a shorter period, if applicable.

Revenues relating to debt instruments are recorded using the effective interest rate method, except for financial assets at fair value through profit or loss.

Financial assets at fair value through profit or loss - a financial asset is classified as at fair value through profit or loss if it is held for trading or designated at fair value through profit or loss.

5.4. Cash and cash equivalents

Cash and cash equivalents include cash on hand and cash in bank accounts and deposits with an original maturity date of six month months or less and are stated at fair value.

5.5. Cash deposits

Cash deposits in the statement of financial position are held for the investment activities. For the purpose of the consolidated statement of cash flows, short-term deposits are included in the investing activities.

5.6. Impairment of financial assets

Financial assets, except for financial assets at fair value through profit or loss, at each reporting date are assessed for signs indicating impairment. Impairment loss is recognized when there is objective evidence of reduction of the estimated future cash flows on this asset as a result of one or more events that occurred after the financial asset was recorded in the accounting. For financial assets at amortized cost, the amount of impairment is calculated as the difference between the asset's carrying amount and present value of the expected future cash flows discounted using the effective interest rate.

Impairment loss directly reduces the carrying amount of all financial assets, except for accounts receivable on principal activities, carrying amount of which is reduced due to the allowance formed. If the accounts receivable on principal activities are uncollectible, they are written-off against the related allowance. Subsequently received reimbursements of amounts previously written-off are recorded in credit of the allowance account. Changes in the carrying amount of the allowance account are recorded in the profit and loss.

Except for equity instruments available for sale, if in a subsequent period the amount of impairment loss decreases and such decrease can be objectively related to an event occurring after the impairment was recognized, the impairment loss previously recognized is recovered by adjusting the items in the income statement. In this case, the carrying amount of financial investments at the date of recovery of impairment cannot exceed its amortized cost, which would be reflected in the case, if impairment was not recognized.

In respect of equity securities available for sale, any increase in fair value after recognition of impairment loss relates directly to equity.

5.7. Writing-off of financial assets

The Group writes-off a financial asset only if rights for cash flows under the corresponding contract terminated the treaty or if a financial asset and corresponding risks and rewards are transferred to other organization. If the Group does not transfer or retain all the principal risks and rewards of ownership of the asset and continues to control the transferred asset, it shall record its share in the asset and related liability in the amount of possible payment of corresponding amounts. If the Group retains all the principal risks and rewards of ownership of the transferred financial asset, it shall continue to account for the financial asset, and reflect a secured loan on income earned.

5.8. Financial liabilities and equity instruments issued by the Group

5.8.1. Accounting as liabilities or equity

Debt and equity financial instruments are classified as liabilities or equity based on the substance of the corresponding contractual obligations.

5.8.2. Equity instruments

Equity instrument is any contract confirming the right for a share in the company's assets remaining after deduction of all its liabilities. Equity instruments issued by the Group are recorded in the amount of generated income net of direct expenses for their issue.

5.8.3. Liabilities under financial guarantee contracts

Liabilities under financial guarantee contracts are initially measured at fair value and subsequently recorded at the higher of:

cost of contractual obligations determined in accordance with IAS 37 "Provisions, Contingent Liabilities and Contingent Assets", and
cost, less, where applicable, accumulated depreciation reflected in accordance with the principles of revenue recognition set forth below.

5.8.4. Financial liabilities

Financial liabilities - measurement categories

Financial liabilities are classified as subsequently measured at amortized cost, except for (i) financial liabilities at fair value through profit or loss: this classification is applied to derivatives, financial liabilities held for trading (e.g. short positions in securities), contingent consideration recognized by an acquirer in a business combination and other financial liabilities designated as such at initial recognition and (ii) financial guarantee contracts and loan commitments. As of 30 June

2022 and 30 June 2021 the Group did not have financial guarantee contracts and loan commitments or financial liabilities at fair value through profit or loss.

Financial liabilities - derecognition

Financial liabilities are derecognised when they are extinguished (i.e. when the obligation specified in the contract is discharged, cancelled or expires).

An exchange between the Group and its original lenders of debt instruments with substantially different terms, as well as substantial modifications of the terms and conditions of existing financial liabilities, are accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The terms are substantially different if the discounted present value of the cash flows under the new terms, including any fees paid net of any fees received and discounted using the original effective interest rate, is at least 10% different from the discounted present value of the remaining cash flows of the original financial liability. In addition, other qualitative factors, such as the currency that the instrument is denominated in, changes in the type of interest rate, new conversion features attached to the instrument and change in loan covenants are also considered. If an exchange of debt instruments or modification of terms is accounted for as an extinguishment, any costs or fees incurred are recognised as part of the gain or loss on the extinguishment. If the exchange or modification is not accounted for as an extinguishment, any costs or fees incurred adjust the carrying amount of the liability and are amortised over the remaining term of the modified liability.

Modifications of liabilities that do not result in extinguishment are accounted for as a change in estimate using a cumulative catch up method, with any gain or loss recognised in profit or loss, unless the economic substance of the difference in carrying values is attributed to a capital transaction with owners.

5.8.5. Trade and other accounts payable

Trade payables are recognized when the counterparty fulfills its contractual obligations and measured at amortized cost using the effective interest rate.

5.8.6. Loans and borrowings

Loans and borrowings are initially recognized at fair value less costs incurred in the transaction. Subsequently, loans and borrowings are stated at amortized cost; any difference between proceeds (net of transaction costs) and the amount of repayment is reflected in the income statement over the period for which loans and borrowings are issued using the effective interest rate method. Loans and borrowings are classified as current liabilities, unless the Group has an unconditional right to defer settlement of the obligation to at least one year after the date of balance sheet preparation.

5.8.7. Writing-off of financial liabilities

The Group writes-off financial liabilities only when they are repaid, cancelled or expire.

5.9. Foreign currency transactions

Transactions in currencies other than the functional currency are initially recorded at exchange rates set on the dates of these transactions. Monetary assets and liabilities denominated in such currencies are translated at the rates applicable at the reporting date. All realized and unrealized gains and losses resulting from exchange rate differences are included in profit or loss for the period.

5.10. Biological assets

Biological assets represented by the commercial herd and herd replacements are recorded at fair value less estimated selling and distribution expenses. Estimate of fair value of biological assets of the Group is based on discounted cash flow models, according to which the fair value of biological assets is calculated using present value of the expected net cash flows from biological assets discounted at the appropriate rate.

The Group recognizes a biological asset only where it controls an asset as a result of past events; it is probable that the economic benefits from the asset will flow to the Group; fair value or cost of an asset can be estimated with reasonable certainty.

Profit or loss arising on initial recognition of biological assets at fair value less estimated selling and distribution expenses is included in the consolidated income statement as incurred.

Agricultural products collected from a biological asset are measured at fair value less estimated selling and distribution expenses. Profit or loss arising on initial recognition of agricultural products at fair value, less estimated selling and distribution expenses, is recognized in the consolidated statement of comprehensive income.

5.11. Inventories

Inventories consist mainly of raw materials, package and packing materials, agricultural produce and finished goods. Inventories are valued at the lower of cost and net realisable value.

Cost of goods includes the cost of acquisition and, where appropriate, costs incurred in bringing inventories to their present condition and location. Cost is calculated using the weighted average method. Initial cost of inventories includes the transfer of gains and losses on qualifying cash flow hedges, recognised in OCI, in respect to the purchases of raw materials.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

5.12. Property, plant and equipment

Property, plant and equipment are recorded at historical cost or deemed cost, equal to fair value at the date of transition to IFRS, less accumulated depreciation and accumulated impairment losses. Historical cost of an asset of property, plant and equipment includes (a) the purchase price, including non-recoverable import duties and taxes net of trade and other discounts; (b) any costs directly related to bringing an asset to the location and condition, which allow its functioning in accordance with the intentions of the Group's management; (c) initial assessment of the costs of dismantling and removal in the asset of property, plant and equipment and restoring the occupied territory; this obligation is assumed by the Group either upon the acquisition of an asset, or as a result of its operation for a certain period of time for the purposes not related to the production of inventories during this period. Cost of assets created in-house includes cost of materials, direct labor costs and an appropriate proportion of production overheads.

Construction in progress includes costs directly related to the construction of property, plant and equipment, including distribution of variable overheads associated with the construction and prepayments for the property, plant and equipment. Construction in progress is not depreciated. These assets are depreciated from the moment when they are used in economic activity, on the same basis as depreciation on other assets.

Subsequently capitalised costs include major expenditures for improvements and replacements that extend the useful lives of the assets or increase their revenue generating capacity. Repairs and maintenance expenditures that do not meet the foregoing criteria for capitalisation are charged to the consolidated statement of comprehensive income as incurred.

Depreciable amount is the cost of an asset of property, plant and equipment, or any other amount, less its residual value. The residual value of an asset is the estimated amount that the company would receive to date from the sale of an item of property, plant and equipment, less estimated costs of disposal if the asset reached the age and condition, in which, presumably, it will be at the end of its useful life. Assets under finance lease are depreciated over the shorter of estimated useful life on the same basis as own assets or over the period of the relevant lease.

Depreciation is provided to write-off the depreciable amount over the useful life of an asset and is calculated using the straightline method. Useful lives of the groups of property, plant and equipment are as follows:

Buildings	10 - 40 years
Plant and equipment	5 - 25 years
Vehicles	3 - 10 years
Furniture and fittings	3 - 5 years
Construction in progress and uninstalled equipment	No depreciation

The residual value, useful life and depreciation method are reviewed at the end of each financial year. Impact of any changes arising from estimates made in prior periods is recorded as a change in an accounting estimate.

Gains or losses arising from disposal or liquidation of an asset of property, plant and equipment, are defined as the difference between sales proceeds and carrying amount of an asset and recognized in profit or loss.

5.13. Impairment of property, plant and equipment

At the end of each reporting period the Group identifies signs of possible impairment of assets. If any such indication exists, the Group reviews the carrying amount of its items of property, plant and equipment to determine whether any signs of impairment exist due to depreciation. If any such indication exists, the expected recoverable amount of an asset is estimated to determine the amount of impairment losses, if any.

In order to determine the impairment losses, assets are grouped at the lowest levels for which it is possible to identify separately the cash flows (cash generating unit).

The recoverable amount is the higher of fair value less selling and distribution expenses and value of an asset in use. In assessing the value of an asset in use, the estimated future cash flows associated with the asset, are discounted to their present value using pre-tax discount rate that reflects current market estimates of time value of money and the risks inherent in the asset.

If, according to the estimates, the recoverable amount of an asset (cash generating unit) is less than its carrying amount, the carrying amount of an asset (cash generating unit) is reduced to the recoverable amount. An impairment loss is recognized immediately in the income statement, except when the asset is recorded at a revalued amount. In this case the impairment loss is considered as a revaluation decrease.

In cases where impairment losses are subsequently reversed, the carrying amount of the asset (cash generating unit) is increased to the revised estimate of recovery amount, however, in such a way that the increased carrying amount does not exceed the carrying amount that would be determined, if an impairment loss was not recognized in respect of an asset (cash generating unit) in previous years. Reversal of impairment loss is recognized immediately in the income statement, except when the asset is recorded at a revalued amount. In this case, the reversal of an impairment loss is considered as a revaluation increase.

5.14. Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is its fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. Internally generated intangible assets are not capitalized and expenditure is reflected in the income statement in the year in which the expenditure is incurred.

The useful lives of intangible assets are assessed as either finite or indefinite.

Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at each financial year end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the income statement in the expense category consistent with the function of the intangible asset.

Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either individually or at the cash generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the income statement when the asset is derecognised.

Amortization is calculated on a straight line basis over the useful life of an asset, which is 10 years.

5.15. Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

5.16. Leases

A lessee measures right-of-use assets similarly to other non-financial assets (such as property, plant and equipment) and lease liabilities similarly to other financial liabilities. As a consequence, a lessee recognises depreciation of the right-of- use asset and interest on the lease liability. The depreciation would usually be on a straight-line basis. In the statement of cash flows, a lessee separates the total amount of cash paid into principal (presented within financing activities) and interest (presented within either operating or financing activities) in accordance with IAS 7.

Assets and liabilities arising from a lease are initially measured on a present value basis. The measurement includes noncancellable lease payments (including inflation-linked payments), and also includes payments to be made in optional periods if the lessee is reasonably certain to exercise an option to extend the lease, or not to exercise an option to terminate the lease. The initial lease asset equals the lease liability in most cases.

The lease asset is the right to use the underlying asset and is presented in the statement of financial position either as part of property, plant and equipment or as its own line item.

5.17. Contingent assets and liabilities

Contingent liabilities are not recognized in the consolidated financial statements. Such liabilities are disclosed in the notes to the consolidated financial statements, except where the probability of outflow of resources embodying economic benefits is insignificant.

Contingent assets are not recognized in the consolidated financial statements, but disclosed in the notes to the extent that it is probable that the economic benefits will flow to the Group.

5.18. Provisions

Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the obligation amount.

The amount recognized as a provision is the best estimate of compensation necessary to repay a current liability on the reporting date, which takes into account all the risks and uncertainties inherent in this liability. In cases where the amount of provision is estimated using cash flows that can be required to repay current liabilities, its carrying amount represents the present value of these cash flows.

Where there is a possibility that one or all of the economic benefits necessary to recover the amount of provision will be reim-bursed by a third party, the receivables are recognized as an asset if there is actual assurance that such reimbursement will be received and the amount of receivables can be measured reliably.

5.19. Revenue recognition

transaction price. Transaction price is the amount of consideration to which the Group expects to be entitled in exchange for transferring control over promised goods or services to a customer, excluding the amounts collected on behalf of third parties.

Revenue is recognized net of discounts, returns and value added taxes, export duties, other similar mandatory

Group's contracts with customers are fixed-price contracts and generally include both advance payment and deferred payment for the same contracts. Generally, the sales are made with a credit term of 30-60 days, which is consistent with the market practice and consequently trade receivables are classified as current assets.

A receivable is recognized when the goods are delivered or dispatched based on delivery terms as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due (Note 21). Contract assets are immaterial and therefore not presented separately in the consolidated financial statements.

A contract liability is an entity's obligation to transfer goods or services to a customer for which the entity has received consideration from the customer.

The five-step model framework

The core principle of IFRS 15 is that an entity will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This core principle is delivered in a five-step model framework:

Identify the contract(s) with a customer
Identify the performance obligations in the contract
Determine the transaction price
Allocate the transaction price to the performance obligations in the contract
Recognize revenue when (or as) the entity satisfies a performance obligation.

Application of this guidance will depend on the facts and circumstances present in a contract with a customer and will require the exercise of judgment.

Step 1: Identify the contract with the customer

A contract with a customer are exists when:

the contract has been approved by the parties to the contract;
each party's rights in relation to the goods or services to be transferred can be identified;
the payment terms for the goods or services to be transferred can be identified;
the contract has commercial substance; and

it is probable that the consideration to which the entity is entitled to in exchange for the goods or services will be collected.

If a contract with a customer does not yet meet all of the above criteria, the Group continues as to re-assess the contract going forward to determine whether it subsequently meets the above criteria.

Step 2: Identify the performance obligations in the contract

At the inception of the contract, the Group assess as the goods or services that have been promised to the customer, and identify as a performance obligation:

a good or service (or bundle of goods or services) that is distinct;
or a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer.

Step 3: Determine the transaction price

The transaction price is the amount to which the Group expects to be entitled in exchange for the transfer of goods and services. When making this determination, the Group considers past customary business practices.

Step 4: Allocate the transaction price to the performance obligations in the contracts

Where a contract has multiple performance obligations, the Group will allocate the transaction price to the performance obligations in the contract by reference to their relative standalone selling prices. If a standalone selling price is not directly observable, the Group will need to estimate it using an adjusted market assessment approach or the expected cost plus a margin approach.

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation

Revenue is recognized as control is passed, either over time or at a point in time.

Control of an asset is defined as the ability to direct the use of and obtain substantially all of the remaining benefits from the asset. These include:

using the asset to produce goods or provide services;
using the asset to enhance the value of other assets;
using the asset to settle liabilities or to reduce expenses;
selling or exchanging the asset;
pledging the asset to secure a loan; and
holding the asset.

The benefits related to the asset are the potential cash flows that may be obtained directly or indirectly.

5.20. Income tax

Income tax is calculated in accordance with the requirements of the applicable legislation of Ukraine. Income tax is calculated on the basis of financial results for the year adjusted to items that are not included in taxable income or that cannot be attributed to gross expenses. It is calculated using tax rates effective at the reporting date.

Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax base used to calculate taxable income. Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are recorded taking into account the degree of certainty in sufficient taxable income, which enables to realize temporary differences related to gross expenses.

Deferred tax is calculated at tax rates, which presumably will be applied during the sale of related assets or repayment of related liabilities.

Assets and liabilities on deferred income tax are offset when: a) the Group has a legally enforceable right to offset the recognized current income tax assets and liabilities; b) the Group intends either to perform settlement by offsetting counterclaims, or simultaneously sell the asset and settle the liability; c) deferred tax assets and liabilities relate to income taxes levied by the same taxation authority in each future period in which it is intended to repay or reimburse a significant amount of deferred tax liabilities and assets.

Deferred income tax is recognized in the income statement, except when it relates to items recognized directly in equity. In this case the deferred tax is also recognized in equity.

In 2021, Ukrainian corporate income tax was levied at a rate of 18% (2020: 18%).

The majority of the Group companies that are involved in agricultural production (poultry farms and other entities engaged in agricultural production) benefit substantially from the status of an agricultural producer. These companies are exempt from income taxes and pay the Fixed Agricultural Tax instead (Note 16).

5.21. Value Added Tax

For the six month ended 30 June 2022 and 2021, VAT was levied at two rates: 20% on Ukrainian domestic sales and imports of goods, works and services and 0% on export of goods and provision of works or services to be used outside Ukraine. In 2022 VAT rate remains at the same level.

VAT output equals the total amount of VAT collected within a reporting period, and arises on the earlier of the date of shipping goods to the customer or the date of receiving payment from the customer. VAT input is the amount that a taxpayer is entitled to offset against his VAT liability in the reporting period. According to Ukrainian legislation, rights to VAT input arise on the earlier of the date of payment to the supplier or the date goods are received.

5.22. Government grants

Government grants are stated at fair value when there is reasonable assurance that the grant will be received. Ukrainian legislation provides a variety of tax benefits and subsidies for agricultural companies. Such benefits and subsidies

are approved by the Supreme Council of Ukraine, the Ministry of Agrarian Policy, Ministry of Finance, local authorities. Government grants are recognised as income over the periods necessary to match them with the related costs, or as an offset against finance costs when received as compensation for the finance costs for agricultural producers. To the extent the conditions attached to the grants are not met at the reporting date, the received funds are recorded in the Group's consolidated financial statements as deferred income.

Other government grants are recognised at the moment when the decision to disburse the amounts to the Group is made.

Government grants are not recognised until there is reasonable assurance that the Group will comply with the conditions attached to them and that the grants will be received.

5.23. Partial compensation of interest rates on loans raised by the agricultural companies from financial institutions

The Group companies are entitled to compensation from the government of a share of interest expenses incurred on loans which were received for agricultural purposes. The amount of interest compensation depends on the term and purpose of the loan. Due to the fact that the payment of interest compensations depends on the capabilities of the country's budget, they are recognized on a cash basis as other operating income in the period of receipt.

5.24. Related party transactions

For the purposes of these consolidated financial statements, the parties are considered to be related if one of the parties has a possibility to control or considerably influence the operational and financial decisions of the other company. While considering any relation which can be defined as related party transactions it is necessary to take into consideration the substance of the transaction not only their legal form.

5.25. Reclassification

Certain comparative information presented in the consolidated financial statements for the six month ended 30 June 2022 has been revised in order to achieve comparability with the presentation used in the consolidated financial statements for the six month ended 30 June 2022. Such reclassifications and revisions were not significant to the Group`s consolidated financial statements.

6. New and amended standards

a) New and amended standards and interpretations adopted

Below is a list of new standards, clarifications and amendments that result in new disclosure requirements for future reporting periods:

IFRS	Effective date:
IFRS 17 Insurance Contracts (including amendments to IFRS 17 issued in June 2020 and amendments to IFRS 17 Initial Adoption of IFRS 17 and IFRS 9 – comparative information released in December 2021)	Applicable to annual reporting periods beginning on or after 1 January 2023. Not yet endorsed for use in the EU.
Amendments to IFRS 4 - Application of IFRS 9 Financial Instruments together with IFRS 4 Insurance Contracts (including amendments to IFRS 4 - Extension of the temporary exemption from the application of IFRS ( IFRS) 9" issued in June 2020)	Annual reporting periods beginning on or after 1 January 2023. Not yet endorsed for use in the EU.
Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current and Classification of Liabilities as Current or Non-current - Deferral of Effective Date (issued on 23 January 2020 and 15 July 2020 respectively)	Annual reporting periods beginning on or after 1 January 2023. Not yet endorsed for use in the EU.
Amendments to IAS 37 – Onerous Contracts – Costs to Perform a Contract (issued on 14 May 2020)	Annual reporting periods beginning on or after 1 January 2022.
Amendments to IAS 16 - Property, Plant and Equipment: proceeds before Use for the Intended Use (issued on 14 May 2020)	Annual reporting periods beginning on or after 1 January 2022.
IFRS	Effective date:
Annual Improvements to IFRS 2018-2020 Period: Amendments to IFRS 1 First Time Adoption of International Financial Reporting Standards – First-Time Adopter of International Financial Reporting Standards (issued on 14 May	Annual reporting periods beginning on or after 1 January 2022.
Annual Improvements to IFRS 2018-2020 Period: Amendments to IFRS 9 Financial Instruments – Fee for the 10% test to derecognise financial liabilities (issued on 14 May 2020)	Annual reporting periods beginning on or after 1 January 2022.
Annual Improvements to IFRS 2018-2020 Period: Amendments to IAS 41 Agriculture – Taxation in Fair Value Measurement (issued on 14 May 2020)	Annual reporting periods beginning on or after 1 January 2022.
Amendments to IFRS 3 – "References to the Conceptual Framework" (issued on 14 May 2020)	Annual reporting periods beginning on or after 1 January 2022.
Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates (issued on 12 February 2021)	Annual reporting periods beginning on or after 1 January 2023.
Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting policies (issued on 12 February 2021)	Annual reporting periods beginning on or after 1 January 2023
Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction (issued on 7 May 2021)	Annual reporting periods beginning on or after 1 January 2023

The management expects that the above standards, when effective, will not have a material effect on the consolidated financial statements of the Group in future periods.

7. Subsidiaries and Non-controlling interests

As at 30 June 2022 and 2021 the Group included the following subsidiaries:

Name of the company	Business activities	30 June 2021	31 December 2021	30 June 2021
Limited Liability Company "Ovostar Union"	Strategic management of subsidiary companies in Ukraine	100,0%	100,0%	100,0%
Limited Liability Company "Ovostar"	Egg-products production and distribution (Ukraine)	100,0%	100,0%	100,0%
Limited Liability Company "Yasensvit"	Breeder farms, production of hatching eggs, farms for growing young laying flock and for laying flock, production and distribution of shell eggs, poultry feed production (Ukraine)	100,0%	100,0%	100,0%
Public Joint Stock Company "Poultry Farm Ukraine"	Production of shell eggs, assets holding (Ukraine)	92,0%	92,0%	92,0%
Public Joint Stock Company "Malynove"	Production of shell eggs, assets holding (Ukraine)	94,0%	94,0%	94,0%
Public Joint Stock Company "Krushynskyy Poultry Complex"	Trading company, egg trading – non operational activity (Ukraine)	76,0%	76,0%	76,0%
Limited Liability Company "Skybynskyy Fodder Plant"	In the process of liquidation (Ukraine)	98,6%	98,6%	98,6%
SIA "Ovostar Europe"	Trade company (Latvia)	89,0%	89,0%	89,0%
SIA "Gallusman"	Production of shell eggs (Latvia)	89,0%	89,0%	89,0%
SIA "EPEX"	Egg-products production (Latvia)	89,0%	89,0%	89,0%
International Food Trade	Trade company (British Virgin Islands)	100,0%	100,0%	100,0%
OAE Food Trade FZE	Trade company (United Arab Emirates)	100,0%	100,0%	100,0%
Limited Liability Company "BV TRADING"	Non-operational activity (Ukraine)	0,0%	0,0%	0,0%
*REMEDIUM FOODS B.V.	Egg processing, distribution of egg	50,0%	50,0%	50,0%

The following tables summarize the information relating to each of the Group`s subsidiaries that has material NCI, before any intragroup elimination:

30 June 2022 (unaudited)	PJSC "Poultry Farm Ukraine"	PJSC "Malynove"	PJSC "Krushyns kyy Poultry Complex"	"SIA" Ovostar Europe"	SIA "Gallusm an"	SIA "EPEX"	Intra group eliminati ons	Total
NCI percentage	8,0%	6,0%	24,0%	11,0%	11,0%	11,0%
Non-current assets	553	13 110	1	4	28	57
Current assets	4 878	11 066	505	13 382	350	62
Non-current liabilities	-	-	-	-	-	-
Current liabilities	(2 630)	(25 480)		(7) (13 727)	(6)	(104)
Net assets	2 801	(1 304)	499	(341)	372	15
Carrying amount of NCI	238	(74)	118	(38)	41	2		287
Revenue	263	2 155	-	19 009	-	103
Profit (loss)	(86)	(2 018)	(2)	(308)	20	1
OCI	(209)	(54)	(36)	(33)	(29)	(1)
Total comprehensive income	(295)	(2 072)	(38)	(341)	(9)	-
Profit allocated to NCI	(7)	(115)	-	(34)	2	-		(154)
OCI allocated to NCI	(17)	(3)	(9)	(4)	(3)	-		(36)
Cash flows from operating activities	(1)	18	-	2 978	(10)	3
Cash flows from investment activities	-	(18)	-	(32)	-	-
Effect from translation into presenta
tion currency Net (decrease)/ increase in cash and	-	-	-	(82)	-	-
cash equivalents	(1)	-	-	2 864	(10)	3


30 June 2021 (unaudited)	PJSC "Poultry Farm Ukraine"	PJSC "Malynove"	PJSC "Krushyns kyy Poultry	"SIA" Ovostar Europe"	SIA "Gallusm an"	SIA "EPEX"	Intra group eliminati ons	Total
			Complex"
NCI percentage	8,0%	6,0%	24,0%	11,0%	11,0%	11,0%
Non-current assets	520	15 368	-	8	358	58
Current assets	4 587	11 227	558	5 093	103	206
Non-current liabilities	-	-	-	-	-	-
Current liabilities	(1 988)	(24 426)	(11)	(5 626)	(61)	(248)
Net assets Carrying amount of NCI	3 119 250	2 169 130	547 131	(525) (58)	400 44	16 2		499

Revenue	1 221	6 371	-	14 066	1	240
Profit (loss)	(573)	(3 046)	(1)	12	3	25
OCI Total comprehensive income	86 (487)	(120) (3 166)	21 20	18 30	(14) (11)	- 25
Profit allocated to NCI	(46)	(182)	-	1	-	3		(224)
OCI allocated to NCI	7	(7)	5	2	(2)	-		5
Cash flows from operating activities	1	-	-	(166)	(30)	-
Cash flows from investment activities	-	-	-	(2)	-	-

Effect from translation into presenta tion currency	-	-	-	(9)	(1)	-
Net (decrease)/ increase in cash and

8. Segment information

All of the Group's operations are located within Ukraine.

Segment information is analyzed on the basis of the types of goods supplied by the Group's operating divisions. The Group's reportable segments under IFRS 8 are therefore as follows:

Egg operations segment	sales of egg
	sales of chicken meat
Egg products operations segment	sales of egg processing products

The accounting policies of the reportable segments are the same as the Group's accounting policies described in Note 5. Sales between segments are mainly carried out at market prices. Operating profit before tax represents segment result. This is the measure reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance.

For the purposes of monitoring segment performance and allocating resources between segments:

All assets are allocated to reportable segments.
All liabilities are allocated to reportable segments.

The following table presents revenue, results of operations and certain assets and liabilities information regarding segments for the six month 30 June 2022 and 2021 the Group included the following subsidiaries:

		Operations segment
6 months ended 30 June 2022 (unaudited)	Egg	Egg products	Total
Revenue from contracts with customers	68 010	23 142	91 152
Inter-segment revenue	(26 374)	(8 203)	(34 577)
Revenue from external buyers	41 636	14 939	56 575

Profit before tax	(17 784)	(195)	(17 979)

	Operations segment
6 months ended 30 June 2021 (unaudited)	Egg	Egg products	Total
Revenue from contracts with customers	78 490	23 638	102 128
Inter-segment revenue	(33 737)	(6 975)	(40 712)
Revenue from external buyers	44 753	16 663	61 416

Profit before tax	1 776	(146)	1 630

For the six month 30 June 2022 and 2021 no sales were settled by barter transactions.

Segment assets, liabilities and other information regarding segments as at 30 June 2022 and 2021 were presented as follows:

		Operations segment
30 June 2022 (unaudited)	Egg	Egg products	Total
Total segment assets	98 392	16 731	115 123

Total segment liabilities	29 952	549	30 501
Addition to property, plant and equipment and intangible assets	127	67	194
Net change in fair value of biological assets and agricultural produce	(19 219)	-	(19 219)
Depreciation and amortization	(1 780)	(260)	(2 040)
Interest income	7	3	10
Interest on debts and borrowings	(221)	-	(221)
Income tax expense	-	-	-

31 December 2021 (audited)		Operations segment
	Egg	Egg products	Total
Total segment assets	124 768	16 251	141 019

Total segment liabilities	30 749	381	31 130

30 June 2021 (unaudited)	Egg	Operations segment Egg products	Total
Total segment assets	123 686	17 484	141 170

Total segment liabilities	30 343	664	31 007
Addition to property, plant and equipment and intangible assets	174	37	211
Net change in fair value of biological assets and agricultural produce	(1 665)	-	(1 665)
Depreciation and amortization	(1 890)	(207)	(2 097)
Interest income	6	3	9
Interest on debts and borrowings	(189)	-	(189)
Income tax expense	(10)	-	(10)

The Group presented disaggregated revenue based on the type of goods or services provided to customers and the geographical region of goods and services. Entities will need to make this determination based on entity-specific and/or industry-specific factors that would be most meaningful to their business.

The Group presented a reconciliation of the disaggregated revenue with the revenue information disclosed for each reportable segment.

Set out below is the disaggregation of the Group's revenue from contracts with customers:

6 months ended 30 June 2022 (unaudited)	Operations segment
	Egg	Egg products	Total
Type of goods or service
Goods	41 594	14 914	56 508
Services	42	25	67
Total revenue from contracts with customers	41 636	14 939	56 575

Geographical markets
Ukraine	28 517	7 448	35 965
Export market	13 119	7 491	20 610
Total revenue from contracts with customers	41 636	14 939	56 575

		Operations segment
6 months ended 30 June 2021 (unaudited)	Egg	Egg products	Total
Type of goods or service
Goods	44 712	16 637	61 349
Services	41	26	67
Total revenue from contracts with customers	44 753	16 663	61 416

Geographical markets
Ukraine	33 610	8 559	42 169
Export market	11 143	8 104	19 247
Total revenue from contracts with customers	44 753	16 663	61 416

9. Other operating income

			6 months ended 6 months ended
	Note	30 June 2022	30 June 2021
		(unaudited)	(unaudited)
Income from refund under the special legislation:
Government subsidies	a)	165	139
Total income from refund under the special legislation		165	139
Gain on recovery of assets previously written off		48	41
Insurance compensation		-	12
Gain on disposal of disposal of other current assets		3	-
Gain on disposal of property plant and equipment		18	-
Other income		38	28
Total		272	220

Recovery of assets previously written-off mainly represents amounts of inventory surplus identified in the reporting period during the stock-taking and recovery of amounts previously recognized as doubtful.

a) Government subsidies

Government grants are presented in the statement of the financial position as deferred income, in case of compensation of the cost of fixed assets, and recognised in profit or loss on a systematic basis over the useful life of the related assets.

Government subsidies also include compensation for interest on loans under the Affordable Loans program. Such amounts are recognized as other income in the period in which such income is incurred. For 6 months of 2022, the amount amounted to USD 32 thousand.

The unamortized portion of government grants from compensation for property, plant and equipment as at 30 June 2022 is USD 2 648 thousand (30 June 2021: USD 3 134 thousand).

10. Other operating expenses

	6 months ended 30 June 2022 (unaudited)	6 months ended 30 June 2021 (unaudited)
Impairment of doubtful accounts receivable and prepayments to suppliers	-	(36)
Charity	(207)	-
Loss on disposal of property plant and equipment	-	(2)
Fines and penalties	(42)	(14)
Other expenses	(55)	(6)
Total	(304)	(58)

11. Amortisation and depreciation expenses

	6 months ended 30 June 2022 (unaudited)	6 months ended 30 June 2021 (unaudited)
Depreciation and amortisation:
Cost of sales	(1 885)	(1 928)
Selling and distribution costs	(47)	(39)
Administrative expenses	(108)	(130)
Total	(2 040)	(2 097)

12. Employee benefits expense

	6 months ended	6 months ended
	30 June 2022	30 June 2021
	(unaudited)	(unaudited)
Wages, salaries and social security:
Costs of production personnel	(3 606)	(3 746)
Costs of distribution personnel	(798)	(561)
Costs of administrative personnel	(853)	(713)
Total	(5 257)	(5 020)

13. Income Tax

Up to 01 January 2022 the majority of the Group companies that are involved in agricultural production (poultry farms and other entities engaged in agricultural production) belonged to single tax payers of the fourth group and were exempt from corporate income tax. In line with the provisions of the Law No 5600 "On Amendments to the Tax Code of Ukraine and some legislative acts of Ukraine to balance the budget revenues" adopted by the Parliament in Ukraine in December 2021, operating companies of the Group involved in poultry farming had to switch to the general taxation system and became CIT payers with the applicable tax rate of 18%.

14. Biological Assets

		30 June 2022		31 December 2021		30 June 2021
	(unaudited)		(audited)		(unaudited)
	Number, thousand heads	Carrying value	Number, thousan d heads	Carrying value	Number, thousand heads	Carrying value
Non-current biological assets
Replacement poultry
Hy-line	2 185	23 270	4 260	45 079	4 347	43 697
Total non-current biological assets	2 185	23 270	4 260	45 079	4 347	43 697
Current biological assets
Commercial poultry
Hy-line	4 077	16 901	4 111	15 459	3 658	16 208
Total current biological assets	4 077	16 901	4 111	15 459	3 658	16 208
Total biological assets	6 262	40 171	8 371	60 538	8 005	59 905

Classification of biological assets into non-current and current component is based on the life cycle of a biological asset. Biological assets that will generate cash flow more than one year are classified as non-current biological assets, biological assets that will generate cash flow less than one year are classified as current biological assets.

Reconciliation of commercial and replacement poultry carrying values for the six month ended 30 June 2022 and 2021 was presented as follows:

	2022 (unaudited)	2021 (unaudited)
As at 01 January (audited)	60 538	51 372
Increase in value as a result of assets acquisition	-	211
Increase in value as a result of capitalization of cost	4 449	9 131
Losses	(19 219)	(1 665)
Decrease in value as a result of assets disposal	(1 453)	(1 219)
Exchange differences	(4 144)	2 075
As at 30 June (unaudited)	40 171	59 905

For the six month ended 30 June 2022 the Group produced shell eggs in the quantity of 793 653 thousand items (30 June 2021: 830 533 thousand items).

Fair value of biological assets was estimated by the Group's specialists which have experience in valuation of such assets. Fair value was calculated by discounting of expected net cash flow (in nominal measuring) at the moment of eggs produced, using corresponding discount rate which is equal to 20,7% (30 June 2021: 16.0%). Management supposes that sale price and production and distribution costs fluctuations will comply with forecasted index of consumer price in Ukraine. The major assumptions were performed on the basis of internal and external information and it reflected Management's assessment of the future agricultural prospect.

Biological assets of the Group are measured at fair value within Level 3 of the fair value hierarchy.

Value measurement is a maximum value exposed to the following assumptions which were used in fair value calculations of biological assets:

Assumption as at	Assumption as at
	30 June 2021
(unaudited)	(unaudited)
0,079 (2,90)	0,078 (2,12)
25,00%	16,00%
1,31	1,05
770	770
	30 June 2022

Based on the current situation in Ukraine that provides a high degree of uncertainty in relation to many of the assumptions in the biological assets revaluation model, and guided by the prudence concept, the Group used conservative approach for calculation of fair value of biological assets as at 30 June 2022

Changes in key assumptions that were used in fair value estimation of biological assets had the following influence on the value of biological assets:

	6 months ended	6 months ended
	30 June 2022	30 June 2021
1% decrease in egg sale price	(853)	(1 321)
1% increase in egg sale price	853	1 321
1% increase in discount rate	(421)	(772)
1% decrease in discount rate	426	779
1% increase in long-term inflation rate of Ukrainian hrivnya	34	34
1% decrease in long-term inflation rate of Ukrainian hrivnya	(34)	(34)

15. Property, plant and equipment and intangible assets

During the six month ended 30 June 2022, the Group's additions to property, plant and equipment amounted to USD 194 thousand (30 June 2021: USD 234 thousand).

For the six month ended 30 June 2022 and 2021 respectively the Group has put into operation fixed assets of book value equal to USD 155 thousand and USD 171 thousand respectively.

As at 30 June 2022 construction-in-progress and uninstalled equipment also included prepayments for the property, plant and equipment which amounted to USD 328 thousand (2021: USD 495 thousand).

As at 30 June 2022, included within property, plant and equipment were fully depreciated assets with the original cost of USD 4 172 thousand (2021: USD 3 939 thousand).

Impairment assessment

The Group reviews its property, plant and equipment each period to determine if any indication of impairment exists. Based on these reviews, there were no indicators of impairment as of 30 June 2022 and 30 June 2021

16. Inventories

	30 June 2022 (unaudited)	31 December 2021 (audited)	30 June 2021 (unaudited)
Raw materials	4 246	5 504	5 911
Agricultural produce and finished goods	7 083	2 263	4 677
Package and packing materials	2 067	2 398	2 202
Work in progress	1 945	1 343	1 115
Other inventories	1 254	1 533	1 332
(Less: impairment of agricultural produce and finished goods	(17)	(19)	(20)
Total	16 578	13 022	15 217

17. Trade and other receivables

	30 June 2022	31 December 2021	30 June 2021
	(unaudited)	(audited)	(unaudited)
Trade receivables	9 401	13 550	10 513
VAT for reimbursement	2 970	1 724	3 568
Other accounts receivable	84	347	518
Credit loss allowance	(140)	(150)	(180)
Total	12 315	15 471	14 419

18. Cash and cash equivalents

	30 June 2022 (unaudited)	31 December 2021 (audited)	30 June 2021 (unaudited)
Cash in banks	3 696	2 419	2 111
Cash on hand	14	16	14
Total	3 710	2 435	2 125

a) Cash in banks by country of bank location denominated in the following currencies:

	Curre	30 June 2022	31 December 2021	30 June 2021
	ncy	(unaudited)	(audited)	(unaudited)
Ukraine	UAH	20	1 430	442
Ukraine	USD	449	83	740
Ukraine	EUR	44	447	535
Total in Ukraine		513	1 960	1 717
Cyprus	EUR	29	-	5
Total in Cyprus		29	-	5
Latvia	USD	447	107	68
Latvia	EUR	2 652	135	137
Total in Latvia		3 099	242	205
United Kingdom	USD	23	1	17
United Kingdom	EUR	13	7	3
United Kingdom	PLN	-	-	-
Total in United Kingdom		36	8	20
United Arab Emirates	AED	-	53	48
United Arab Emirates	USD	19	155	116
United Arab Emirates	EUR	-	1	-
Total in United Arab Emirates		19	209	164

Total cash in banks		3 696	2 419	2 111

19. Equity

Issued capital and capital distribution

For the six month ended 30 June 2022 there were no changes in issued capital.

As referred to in Note 1, the Company was incorporated on 22 March 2011.

The Company's authorized share capital amounts to EUR 225 000 and consists of 22 500 000 ordinary shares with a nominal value off EUR 0.01 each. As at 31 December 2011, 6 000 000 ordinary shares were issued and fully paid. In June 2011 the shares of the Company were listed on the Warsaw Stock Exchange.

As at 30 June 2022, 2021 and 31 December 2021 the shareholder interest above 5% in the Share capital of Company was as follows:

	30 June 2022	31 December 2021	30 June 2021
	(unaudited)	(audited)	(unaudited)
Prime One Capital Ltd	67,93%	67,93%	67,93%
Generali Otwarty Fundusz Emerytalny	11,93%	9,94%	9,94%
FAIRFAX FINANCIAL Holdings Limited	9,09%	5,35%	5,35%
AVIVA Otwarty Fundusz Emerytalny Aviva BZ WBK	5,02%	5,02%	5,02%

Foreign currency translation reserve

The Company's share capital has been converted at the exchange rate prevailing at the reporting date. The EUR 60 000 (equivalent to 6 000 000 shares) as of 30 June 2022, has been converted into USD 69 533 (30 June 2021: USD 71 267). The result arising from exchange rate differences has been recorded in the "Foreign currency translation reserve".

The foreign currency translation reserve is used also to record exchange differences arising from the translation of the financial statements of foreign subsidiaries.

Share premium

As has been mentioned previously, in June 2011 the Group's shares have been placed on WSE. As a result of the transaction, USD 33 048 thousand was raised while the IPO costs amounted to USD 2 115 thousand. In these financial statements funds raised as a result of IPO are reflected in share premium as at 31 December 2011. For the year ended 30 June 2022 and 2021, there were no movements in share premium.

20. Interest-bearing loans and other financial liabilities

	Curre	Effective interest	Maturity	30 June 2022	31 December 2021	30 June 2021
			ncy rate, %		(unaudited)		(audited) (unaudited)
Current interest-bearing loans and other financial liabilities
Landesbank Berlin AG/AKA Ausfuhrkredit Gesellschaft mbH	EUR	2.25%+ EURIBOR (6m)	30.06.2022	559	607	1 249
UkrSibbank	EUR		2,65% 17.08.2022	2 579	2 780	2 914
UkrSibbank	UAH		20,00% 31.07.2022	450	-	-
OTP Bank	EUR		2,60% 02.04.2023	1 627	-	-
OTP Bank	UAH		10,00% 29.09.2022	677	-	-
Crédit Agricole	UAH		11,26% 07.11.2022	2 051	-	-
Prime One Capital Limited	UAH		11,26% 10.07.2024	-	2 353	-
Other current loans	UAH			-	-	25
Total current interest-bearing loans and other financial liabilities				7 943	5 740	4 188
Non-current interest-bearing loans and other financial liabilities
OTP Bank	EUR		2,60% 02.10.2025	4 586	7 141	4 398
Prime One Capital Limited	EUR		3,00% 10.07.2024	-	-	2 427
Total non-current interest-bearing loans and other financial liabilities				4 586	7 141	6 825
Total interest-bearing loans and other financial liabilities				12 529	12 881	11 013

The Interest-bearing loans from Landesbank Berlin AG and AKA Ausfuhrkredit-Gesellschaft mbH has been covered of Euler Hermes AG.

Covenants

The Group's loan agreements contain a number of covenants and restrictions, which include, but are not limited to, financial ratios and other legal matters. Covenant breaches generally permit lenders to demand accelerated repayment of principal and interest.

As at 30 June 2022 and 2021 the Group was not in breach of any financial covenants which allow lenders to demand immediate repayment of loans.

Reconciliation of liabilities arising from financing activities. The table below details changes in the Group's liabilities arising from financing activities, including both cash and non–cash changes.

Liabilities arising from financing activities are those for which cash flows were, or future cash flows will be, classified in the Group's consolidated statement of cash flows as cash flows from financing activities:

	31 December 2021 (audited)	Financing cash flow payment	Financing cash flow received	Increase (as a result of accruals and other)	Exchange differences	30 June 2022 (unaudited)
Interest-bearing loans	12 791	(2 686)	3 177	-	(757)	12 525
Interest expenses	90	(304)	-	221	(3)	4
Other borrowings	-	-	-	-	-	-
Total	12 881	(2 990)	3 177	221	11 769	12 529
	31 December 2020 (audited)	Financing cash flow payment	Financing cash flow received	Increase (as a result of accruals and other)	Exchange differences	30 June 2021 (unaudited)
Interest-bearing loans	10 777	(1 274)	1 790	-	(340)	10 953
Interest expenses	(40)	(79)	-	189	(35)	35
Other borrowings	28	-	-	-	(3)	25
Total	10 765	(1 353)	1 790	189	(378)	11 013

21. Trade and other payables

	30 June 2022	31 December 2021	30 June 2021
	(unaudited)	(audited)	(unaudited)
Trade payables	12 420	12 373	13 563
Employee benefit liability	539	600	566
Liability for unused vacation	805	863	829
Taxes payable	213	257	241
VAT liabilities	235	200	145
Income tax payables	-	-	22
Other payables	91	98	242
Total	14 303	14 391	15 608

22. Related party disclosures

For the purposes of these consolidated financial statements, the parties are considered to be related, if one of the parties has the ability to exercise control over the other party or influence significantly the other party in making financial and operating decisions. Considering the transactions with each possible related party, particular attention is paid to the essence of relationships, not merely their legal form.

Related parties may enter into transactions, which may not always be available to unrelated parties, and they may be subject to such conditions and such amounts that are impossible in transactions with unrelated parties.

According to the criteria mentioned above, related parties of the Group are divided into the following categories:

(A). Key management personnel;
(B). Companies which activities are significantly influenced by the Beneficial Owners;
(C). Other related parties.

The following companies and individuals are considered to be the Group's related parties as at 30 June 2022 and 2021:

(A). Key management personnel

Key management personnel 2022:	Position:
Borys Bielikov	Executive Director / CEO
Vitalii Veresenko	Non-executive director
Markiyan Markevych	Non-executive director
Vitalii Sapozhnik	Chief Financial Officer
Arnis Veinbergs	Deputy CEO in charge of Production activity
Karen Arshakyan	Non-executive director
Yuliya Flyorova	Production director

Key management personnel 2021:	Position:
Borys Bielikov	Executive Director / CEO
Vitalii Veresenko	Non-executive director
Sergii Karpenko	Non-executive director
Vitalii Sapozhnik	Chief Financial Officer
Arnis Veinbergs	Deputy CEO in charge of Production activity
Karen Arshakyan	Non-executive director
Yuliya Flyorova	Production director

(B). Companies which activities are significantly influenced by the Key management personnel

Aleksa LTD LLC	2022/2021
Prime One Capital Limited	2022/2021

As at 30 June 2022 and 2021 trade accounts receivable from related parties and advances issued to related parties were presented as follows:

	30 June 2022 (unaudited)	31 December 2021 (audited)	30 June 2021 (unaudited)
(B). Companies which activities are significantly influenced by the Beneficial Owners: Prepayments to related parties
Aleksa LTD LLC	44	47	54
Total	44	47	54

Debt with Prime One Capital Limited is disclosed in note 20

For the six month ended 30 June 2022 and 2021 the transactions with related parties amounted to:

	6 ended	6 ended
	30 June 2022	30 June 2021
	(unaudited)	(unaudited)
(B). Companies which activities are significantly influenced by the Beneficial
Owners:
Interest on debts and borrowings:
Prime One Capital Limited	9	36
General and administrative expenses:
Aleksa LTD LLC	13	6

Total	22	42

(C). Other related parties:

For the six month ended 30 June 2022, 2021 the Group has no other related parties.

23. Commitments and contingencies

Operating environment

All production facilities of the Company are located in Ukraine and its operations are highly dependent on the developments in this jurisdiction.

In 2022, Ukraine faced significant public debt repayments, which required mobilising substantial domestic and external financing in an increasingly challenging financing environment for emerging markets.

On February 24, 2022, Russian troops launched a military invasion of Ukraine, which led to a full-scale war on the territory of the Ukrainian state. The ongoing military attack has caused and continues to cause significant casualties, population displacement, infrastructure damage and disruption to economic activity in Ukraine Seaports and airports are closed and damaged. Export through seaports was completely frozen. The situation remains highly volatile and the outlook highly uncertain. The economic consequences are already very serious. As a result, the government has imposed martial law throughout the country, as well as other relevant emergency measures to stabilize markets and the economy, but the country is facing large budgetary and external financial deficits. The Ukrainian authorities continue to service their external debt obligations, and the country's payment system continues to operate, banks are open and mostly liquid. Most Ukrainian companies still pay taxes. At the time of reporting, the occupied territories of central Ukraine, where the production of the Ovostar Union group of companies is concentrated, were liberated from the invaders, but hostilities continue in the eastern and southern parts of Ukraine, and the entire territory is subjected to rocket attacks.

International organizations (IMF, EBRD, EU, World Bank), along with individual countries and charities, have provided Ukraine with financing, donations and material support. In total, international support has reached more than USD 15 billion. In June, the National Bank of Ukraine (NBU) decided to raise the discount rate to 25%.

Despite the current unstable situation, the banking system remains stable, with sufficient liquidity even as martial law continues, all banking services are available to its customers, both legal entities and individuals. In the face of the invasion, the Ukrainian government has imposed export restrictions for meat and livestock, rye, oats, millet, buckwheat, sugar and dietary salt. Furthermore, the Ukrainian Ministry of Economy will issue export permits for the group of products, subjected for licensing: wheat, chicken meat and eggs.

As of May 2022, the Verkhovna Rada of Ukraine has approved a package of amendments to taxation to support Ukrainian businesses during the war. The law establishes a special economic regime for the period of martial law. The key innovation is that all companies can now waive VAT and income tax (CIT) by switching to a 2% sales tax. Physically lost goods are not subject to VAT. VAT refunds for exporters are frozen. Private entrepreneurs (group 1 and group 2) are allowed to pay no taxes at all (and they are not required to pay a single social contribution for 1 year after the end of martial law). For automotive fuel, the excise tax is reset to zero, and the VAT rate is reduced from 20% to 7%. In addition, support for national military action is exempt from taxation.

significantly in 2022 (86.2% of GDP) and remain high in 2023 (78% of GDP) (IMF) . In 2021, the hryvnia appreciated by 3.5% against the US dollar (Ministry of Finance), but inflation rose to 10% in 2021 (from 5% in 2020) due to higher energy prices

and other production costs for a wide range of goods and services. The IMF does not undertake to predict inflation in Ukraine for 2022.

On June 4, the Decision of the European Union on the abolition of duties on Ukrainian goods for a year came into

duties on industrial products, suspension of the entry price system for fruits and vegetables and all tariff quotas for agricultural products;
all anti-dumping duties on imports of goods originating from Ukraine and the application of global protective measures in relation to Ukrainian goods are suspended.

The liberalization of trade relations also implies that Ukraine will abide by European rules of origin and related procedures under the Association Agreement, will refrain from any new restrictions on imports from the EU, and will ensure respect for democratic principles, human rights and fundamental freedoms, the rule of . rights, fight against corruption.

Taxation

economy. Legislation and regulations are not always clearly defined and their interpretation depends on the views of local, regional and other government authorities. Cases of conflicting opinions are not unusual.

Ukraine has a corporate income tax system, under which taxable profit of companies (i.e. financial profit adjusted by tax differences) is subject to 18% tax rate.

Transfer pricing rules apply to transactions with related non-residents and "low-tax" non-residents (i.e. non-residents, taxed domestically at a significantly lower corporate income tax rate than the Ukrainian tax rate of 18%), subject to a company's minimum income threshold of UAH 150 million and transactions volume threshold with each individual non- resident of UAH 10 million.

Domestic supplies of goods and services, as well as imports of goods and certain services, are subject to value added tax at a standard rate of 20%, except for supplies of wheat and rye (meslin), barley, corn, soybeans, colza or rapeseed, sunflower. They are taxed at a rate of 14%. A reduced tax rate of 0% applies to the export of goods from Ukraine.

Payment of passive income (i.e. interest, royalties, dividends etc.) to non-residents of Ukraine is subject to withholding tax at a standard 15% rate unless double tax treaties or the Tax Code of Ukraine provide another tax rate.

Agrarian producers of raw materials are allowed to apply a simplified tax system, given that at least 75% of their income is attributable to sales of agricultural raw materials produced by such company. Under the simplified tax system, companies are subject to a fixed tax, which depends on the type, location and monetary value of farmland used by such companies. Changes were made to the Tax Code and from January 1, 2022, egg producers, in particular, ceased to fall under this category

On July 1, 2021, the Law on the abolition of the moratorium on the sale of agricultural land came into force, but it provides for a number of restrictions related to the maximum size of land that can be sold to an individual buyer, restrictions on the sale of land in certain territories and certain categories of buyers. After a full-scale Russian invasion of Ukraine on February 24, 2022, the sale was suspended, but at the end of May, the sale resumed.

The Group's operations and financial position will continue to be affected by political developments in Ukraine, including the application of current and future legislation and tax regulations. Management believes that the Group has complied with all applicable tax laws and has paid or accrued all applicable taxes.

24. Subsequent events

On February 24, 2022, Russian troops launched a military invasion of Ukraine, which led to a full-scale war on the territory of the Ukrainian state. As a result of continuous rocket and artillery shelling, many cities of Ukraine suffered significant damage, as a result of which thousands of people died and were injured, including among the civilian population. As a result of hostilities, some areas of Kharkov, Zaporozhye, Kherson, Donetsk and Lugansk regions were under occupation; The Black Sea ports of Ukraine have suspended their work, which temporarily made it impossible to export through sea terminals. In July, an agreement was signed in Istanbul to unblock 3 ports for grain exports.

As of the date of this report, the Group continues to operate. The management of the Group controls all its operations. Office staff work remotely, while production staff perform their duties at their sites. About 40 employees of the Group were mobilized into the Armed Forces of Ukraine.

Until the approval of this report, the war in Ukraine continues.

The duration and consequences of the war in Ukraine are currently unclear. It is not possible to reliably estimate the duration and severity of these consequences, as well as their impact on the financial position and results of the Group in future periods. After considering all available evidence and the actions taken and planned by the Group to offset the adverse impact of the ongoing military intervention on the business up to the date these financial statements are authorized for issue, management has concluded that it is appropriate to prepare the financial statements on a going concern basis, recognizing that this material uncertainty in it, as indicated in Note 2.

AI Terminal

Ovostar Union PLC

5746_rns_2022-08-26_de3e657d-5913-4d3a-bf8b-d6c41ba6ce75.pdf

OVOSTAR UNION

CONTENTS

STATEMENT OF DIRECTORS' RESPONSIBILITY

INTERIM MANAGEMENT REPORT

KEY SEGMENTS ACTIVITIES EGG SEGMENT

Production

Sales

6M 2022 5

KEY SEGMENTS ACTIVITIES EGG PRODUCTS SEGMENT

Production

Sales

Dry Egg Products Sales Liquid Egg Products Sales

FINANCIAL RESULT

Revenue

cost of sales and gross loss

Operating loss and EBITDA

Net Loss

Marginality

Sales Structure by Revenue Profitability Dynamics

FINANCIAL POSITION

Assets, liabilities and equity

Loans and borrowings

Cash flow

Investment Program

ALTERNATIVE PERFORMANCE MEASURES

ALTERNATIVE PERFORMANCE MEASURES

OTHER SUBSTANTIAL INFORMATION

Principal risks and uncertainties

declaration of income from non-recurring or extraordinary activities

indication of important events that have occurred in the reporting period

Staff and management

Production facilities

OTHER SUBSTANTIAL INFORMATION

Flock and egg production

Egg processing and egg products output

Supply chain

Distribution

Exports

Imports

related parties' transactions

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE 6 MONTHS ENDED 30 JUNE 2022

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

FOR THE 6 MONTHS ENDED 30 JUNE 2022

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE 6 MONTHS ENDED 30 JUNE 2022 (IN USD THOUSAND, UNLESS OTHERWISE STATED)

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE 6 MONTHS ENDED 30 JUNE 2022

1. Corporate information

2. Basis of preparation

2.1. Statement of compliance and basis of measurement

2.2. Going concern basis

2.3. Functional and presentation currency.

Relevant exchange rates are presented as follows:

3. Basis of consolidation

4. Use of estimates and assumptions

4.1. Impairment of property, plant and equipment

4.2. Fair value of biological assets

4.3. Expected credit losses

4.4. Useful lives of property, plant and equipment

4.5. Deferred tax assets

5. Summary of significant accounting policies

5.1. Recognition and measurement of financial instruments

Financial instruments: key measurement terms

Financial instruments: initial recognition

5.2. Financial assets

Financial assets: Classification and subsequent measurement: measurement categories

Financial assets: Classification and subsequent measurement: business model

Financial assets: Classification and subsequent measurement: cash flow characteristics

Financial assets: Reclassification

Financial assets: Credit loss allowance for ECL

Financial assets: Write-off

Financial assets: Derecognition

Financial assets: Modification

5.3. Effective interest rate method

5.4. Cash and cash equivalents

5.5. Cash deposits