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Amber Grid Interim / Quarterly Report 2020

May 6, 2020

2263_rns_2020-05-06_eaf52475-7f82-4d53-8eff-abcac5198d2d.pdf

Interim / Quarterly Report

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EeefRumus debtivisiis persius

RASA BALTARAGIENĖ

2020-05-06 16:09:11 GMT+3

Paokittis: Parailas

Qualified Opulence: Signature

NEMUNAS BIKNIUS

2020-05-06 16:11:38 GMT+3

Purpose: Signature

EeefRumus debtivisiis persius

GYTIS FOMINAS

2020-05-06 16:53:41 GMT+3

Paokittis: Parailas

AB AMBER GRID

CONDENSED CONSOLIDATED AND THE COMPANY'S FINANCIAL STATEMENTS

AS OF 31 MARCH 2020

PREPARED ACCORDING TO INTERNATIONAL FINANCIAL REPORTING STANDARDS

AS ADOPTED BY THE EUROPEAN UNION


AB AMBER GRID, company code 303090867, Savanorių pr. 28, Vilnius, Lithuania

CONDENSED CONSOLIDATED AND THE COMPANY'S FINANCIAL STATEMENTS

AS OF 31 MARCH 2020

(all amounts are in euro thousand unless stated otherwise)

Consolidated and Company's Statement of financial position

Notes Group Company
As of 31 March 2020 As of 31 December 2019 As of 31 March 2020 As of 31 December 2019
ASSETS
A. Non-current assets 220.876 209.346 220.743 209.215
I. Intangible assets 4 2.716 2.910 2.065 2.262
II. Property, plant and equipment 4 211.580 201.362 211.576 201.359
II.1. Land 125 125 125 125
II.2. Buildings 5.742 5.183 5.742 5.183
II.3. Plant and equipment 147.023 147.770 147.023 147.770
II.4. Machinery and equipment 36.862 37.714 36.862 37.714
II.5. Motor vehicles 718 773 718 773
II.6. Other 2.409 2.637 2.405 2.634
II.7. Construction in progress 18.701 7.160 18.701 7.160
III. The right-of-use assets 6 3.013 2.001 2.864 1.850
IV. Non-current financial assets 4 4 675 675
IV.1 Investment in the subsidiary - - 675 675
IV.2. Non-current trade receivables 7 - - - -
Other non-current financial 4 -
IV.3 assets 4 -
V. A deferred tax asset 3.563 3.069 3.563 3.069
B. Current assets 39.955 46.783 29.333 28.094
I. Inventories and prepayments 1.917 2.651 1.903 2.640
I.1. Raw materials, spare parts and other inventories 1.469 2.119 1.469 2.119
I.2. Prepayments 448 532 434 521
II. Accounts receivable 28.610 25.251 27.256 25.253
II.1. Trade receivables 7 6.123 5.860 4.771 5.865
II.2. Other receivables 7 22.487 19.391 22.485 19.388
III. Corporate income tax paid in advance 125 - 125 -
IV. Other financial assets 9 8.968 18.648 29 4
V. Cash and cash equivalents 335 233 20 197
Total assets 260.831 256.129 250.076 237.309

(cont'd on the next page)

The accompanying notes are an integral part of these financial statements.


AB AMBER GRID, company code 303090867, Savanorių pr. 28, Vilnius, Lithuania

CONDENSED CONSOLIDATED AND THE COMPANY'S FINANCIAL STATEMENTS

AS OF 31 MARCH 2020

(all amounts are in euro thousand unless stated otherwise)

Consolidated and Company's Statement of financial position (cont'd)

Notes Group Company
As of 31 March 2020 As of 31 December 2019 As of 31 March 2020 As of 31 December 2019
EQUITY AND LIABILITIES
C. Equity 141.397 137.854 141.432 138.172
I. Share capital 51.731 51.731 51.731 51.731
II. Reserves 74.638 74.638 74.638 74.638
II.1. Legal reserve 5.173 5.173 5.173 5.173
II.2. Other reserves 69.465 69.465 69.465 69.465
III. Retained earnings (deficit) 15.028 11.485 15.063 11.803
D. Accounts payable and liabilities 119.434 118.275 108.644 99.137
I. Amounts payable after one year and non-current liabilities 53.766 54.075 53.639 53.945
I.1. Non-current borrowings 10 50.652 51.739 50.652 51.739
A right-of-use asset and corresponding liability 6 2.603 1.849 2.476 1.719
I.3. Non-current employee benefits 487 487 487 487
I.4. Deferred income tax liability - - - -
I.5. Other non-current liabilities 24 - 24 -
Accounts payable within one year and short-term liabilities 65.668 64.200 55.005 45.192
II.1. Current financial liability 15.305 6.452 15.125 6.272
Current portion of non-current borrowings 10 13.618 13.618 13.618 13.618
II.3 A right-of-use asset and corresponding liability 6 435 160 412 138
II.4 Current year portion of non-current employee benefits 53 53 53 53
II.5 Trade payables 12 13.541 6.967 10.649 4.191
II.6 Advance amounts 13 7.584 17.103 269 1.431
II.7 Income tax payable 701 688 688 688
II.8 Payroll related liabilities 2.552 1.723 2.442 1.655
II.9. Other payables and current liabilities 14 11.879 17.436 11.749 17.146
Total equity and liabilities 260.831 256.129 250.076 237.309

The accompanying notes are an integral part of these financial statements.

Chief Executive Officer

Nemunas Biknius

6 May 2020

Head of accounting

Rasa Baltaragiene

6 May 2020


AB AMBER GRID, company code 303090867, Savanorių pr. 28, Vilnius, Lithuania

CONDENSED CONSOLIDATED AND THE COMPANY'S FINANCIAL STATEMENTS

AS OF 31 MARCH 2020

(all amounts are in euro thousand unless stated otherwise)

Consolidated and Company's Income statement

Group Company
Notes For the period of three months ended 31 March 2020 For the period of three months ended 31 March 2019 (adjusted)* For the period of three months ended 31 March 2020
I. Revenue 13.592 15.036 13.139 14.778
II. Expenses (10.450) (9.216) (10.294) (9.102)
II.1. Cost of natural gas (3.068) (2.420) (3.068) (2.420)
II.2. Depreciation and amortization (2.741) (2.444) (2.694) (2.417)
II.3. Remuneration and related social security tax expenses (2.451) (2.415) (2.364) (2.351)
II.4. Repair and technical maintenance expenses (671) (783) (671) (783)
II.5. Taxes other than income tax (496) (449) (496) (449)
II.6. Telecommunications and IT systems expenses (354) (208) (335) (193)
II.7. Other expenses (669) (497) (666) (489)
III. Operation profit (loss) 3.142 5.820 2.845 5.676
IV. Financial activity (80) (107) (79) (107)
IV.1. Income 1 3 1 3
IV.2. Expense (81) (110) (80) (110)
V. Profit (loss) before income tax 3.062 5.713 2.766 5.569
VI. Income tax 481 (1.006) 494 (1.006)
VI.1. Current period income tax (13) (991) - (991)
VI.2. Deferred income tax 494 (15) 494 (15)
VII. Net profit (loss) 3.543 4.707 3.260 4.563
Basic and diluted earnings (loss) per share (Eur) 15 0,02 0,03 0,02

*The adjustment was made due to the application of IFRS 16 to land lease, the effect of the adjustment is disclosed in detail in Note No. 17.

The accompanying notes are an integral part of these financial statements.

Chief Executive Officer

Nemunas Biknius

6 May 2020

Head of accounting

Rasa Baltaragienė

6 May 2020


AB AMBER GRID, company code 303090867, Savanorių pr. 28, Vilnius, Lithuania

CONDENSED CONSOLIDATED AND THE COMPANY'S FINANCIAL STATEMENTS

AS OF 31 MARCH 2020

(all amounts are in euro thousand unless stated otherwise)

Consolidated and Company's Statement of comprehensive income

Group Company
For the period of three months ended 31 March 2020 For the period of three months ended 31 March 2019 For the period of three months ended 31 March 2020 For the period of three months ended 31 March 2019
I. Net profit (loss) 3.543 4.707 3.260 4.563
II. Total comprehensive income (loss) 3.543 4.707 3.260 4.563

The accompanying notes are an integral part of these financial statements.

Chief Executive Officer
Nemunas Biknius
6 May 2020

Head of accounting
Rasa Baltaragienė
6 May 2020


AB AMBER GRID, company code 303090867, Savanorių pr. 28, Vilnius, Lithuania

CONDENSED CONSOLIDATED AND THE COMPANY'S FINANCIAL STATEMENTS

AS OF 31 MARCH 2020

(all amounts are in euro thousand unless stated otherwise)

Consolidated and Company's Statement of changes in equity

Group Authorised share capital Legal reserve Other reserves Retained earnings (deficit) Total
Balance as of 31 December 2018 51.731 5.173 94.817 (20.478) 131.243
Total comprehensive income (loss) - - - 4.707 4.707
Net profit (loss) for the year - - - 4.707 4.707
Balance as of 31 March 2019 51.731 5.173 94.817 (15.771) 135.950
Transfer from other reserves - - (25.352) 25.352 -
Dividends declared (5.227) (5.227)
Total comprehensive income (loss) - - - 7.131 7.131
Net profit (loss) for the year - - - 7.131 7.131
Balance as of 31 December 2019 51.731 5.173 69.465 11.485 137.854
Total comprehensive income (loss) - - - 3.543 3.543
Net profit (loss) for the year - - - 3.543 3.543
Balance as of 31 March 2020 51.731 5.173 69.465 15.028 141.397

The accompanying notes are an integral part of these financial statements.

Chief Executive Officer
Nemunas Biknius
6 May 2020

Head of accounting
Rasa Baltaragienė
6 May 2020


AB AMBER GRID, company code 303090867, Savanorių pr. 28, Vilnius, Lithuania

CONDENSED CONSOLIDATED AND THE COMPANY'S FINANCIAL STATEMENTS

AS OF 31 MARCH 2020

(all amounts are in euro thousand unless stated otherwise)

Company's Statement of changes in equity

Company Authorised share capital Legal reserve Other reserves Retained earnings (deficit) Total
Balance as of 31 December 2018 51.731 5.173 94.817 (20.125) 131.596
Total comprehensive income (loss) - - - 4.563 4.563
Net profit (loss) for the year - - - 4.563 4.563
Balance as of 31 March 2019 51.731 5.173 94.817 (15.562) 136.159
Transfer from other reserves - - (25.352) 25.352 -
Dividends declared (5.227) (5.227)
Total comprehensive income (loss) - - - 7.240 7.240
Net profit (loss) for the year - - - 7.240 7.240
Balance as of 31 December 2019 51.731 5.173 69.465 11.803 138.172
Total comprehensive income (loss) - - - 3.260 3.260
Net profit (loss) for the year - - - 3.260 3.260
Balance as of 31 March 2020 51.731 5.173 69.465 15.063 141.432

The accompanying notes are an integral part of these financial statements.

Chief Executive Officer
Nemunas Biknius
6 May 2020

Head of accounting
Rasa Baltaragienė
6 May 2020

10


AB AMBER GRID, company code 303090867, Savanorių pr. 28, Vilnius, Lithuania

CONDENSED CONSOLIDATED AND THE COMPANY'S FINANCIAL STATEMENTS

AS OF 31 MARCH 2020

(all amounts are in euro thousand unless stated otherwise)

Consolidated and Company's Statement of cash flows

Group Company
31 March 2020 31 March 2019 (adjusted)* 31 March 2020 31 March 2019 (adjusted)*
I. Cash flows from (to) operating activities
I.1. Net profit (loss) 3.543 4.707 3.260 4.563
Adjustments of non-cash items and other corrections:
I.2. Depreciation and amortisation 2.741 2.444 2.694 2.417
I.3. Loss (gain) on property, plant and equipment, doubtful trade accounts receivable and inventories write-off and disposal - (2) - (2)
I.4 Revaluation loss of fixed assets - - - -
I.5. Impairment losses (reversal of impairment) for property, plant and equipment, financial assets, allowance for doubtful trade accounts receivable and inventories 75 (6) 75 (6)
I.6. Income tax expenses (income) (481) 1.006 (494) 1.006
I.7. Interest (income) - (3) - (3)
I.8. Interest expenses 82 110 81 110
I.9. Amortisation of grants (deferred revenue) - (24) - (24)
I.10. Elimination of other non-cash items 1 - - -
5.961 8.232 5.616 8.061
Changes in working capital:
I.11. Decrease (increase) in inventories 576 190 576 190
I.12. Decrease (increase) in trade accounts receivable (264) 1.125 1.093 1.084
I.13 Decrease (increase) in other accounts receivable and prepayments 6.569 784 6.571 936
I.14. Increase (decrease) in trade accounts payable (9.718) (5.892) (1.541) (1.992)
I.15. Increase (decrease) in other accounts payable and other current liabilities (5.859) 349 (5.740) 147
I.16. Decrease (increase) in other financial assets 9.680 4.021 (25) 54
I.17. Income tax (paid) (125) (381) (125) (381)
Total changes in working capital 859 196 809 38
Net cash flows from operating activities 6.820 8.428 6.425 8.099
II. Cash flows from (to) investing activities
II.1. (Acquisitions) of property, plant and equipment and intangible assets (15.042) (3.013) (14.933) (3.009)
II.2. Proceeds from sales of property, plant and equipment - 25 - 25
II.3. Grants received 743 1.021 743 1.021
II.4. Loans recovered - - - 150
II.5. Interest received - 6 - 6
Net cash flows (to) investing activities (14.299) (1.961) (14.190) (1.807)

The accompanying notes are an integral part of these financial statements. (cont'd on the next page)


AB AMBER GRID, company code 303090867, Savanorių pr. 28, Vilnius, Lithuania

CONDENSED CONSOLIDATED AND THE COMPANY'S FINANCIAL STATEMENTS

AS OF 31 MARCH 2020

(all amounts are in euro thousand unless stated otherwise)

Consolidates and Company's statements of cash flows (cont'd)

Group Company
31 March 2020 31 March 2019 (adjusted)* 31 March 2020 31 March 2019 (adjusted)*
III. Cash flows from (to) financing activities
III.1. Dividends (paid) (1) - (1) -
III.2. Proceeds from borrowings - - - -
III.3. (Repayments) of borrowings (1.087) - (1.087) -
III.4. The overdraft 8.853 (6.145) 8.853 (6.145)
III.5. Interest (paid) (124) (134) (123) (134)
III.6. The right-of-use assets (60) (35) (54) (35)
III.7. Other cash flows from (to) financial activities - 2 - 2
Net cash flows from (to) financing activities 7.581 (6.312) 7.588 (6.312)
IV. Net increase (decrease) in cash and cash equivalents 102 155 (177) 20
V. Cash and cash equivalents at the beginning of the period 233 42 197 34
VI. Cash and cash equivalents at the end of the period 335 197 20 14
  • The adjustment was made due to the reclassification of cash and cash equivalents with another financial assets item and due to the application of IFRS 16 to land lease. The significant effect of the adjustments is disclosed in Note No. 17.

The accompanying notes are an integral part of these financial statements.

Chief Executive Officer Nemunas Biknius 6 May 2020
Head of accounting Rasa Baltaragienė 6 May 2020

AB AMBER GRID, company code 303090867, Savanorių g. 28, Vilnius, Lithuania

CONDENSED CONSOLIDATED AND THE COMPANY'S FINANCIAL STATEMENTS

AS OF 31 MARCH 2020

(all amounts are in euro thousand unless stated otherwise)

Notes to the consolidated and the Company's financial Statements

1 General information

The consolidated financial statements disclose the financial position and performance of the AB Amber Grid (hereinafter referred to as the 'Company') and its subsidiary UAB GET Baltic (hereinafter together referred to as the 'Group').

AB Amber Grid was registered on 25 June 2013 after the spin-off from AB Lietuvos Dujos of the natural gas transmission activity with respective assets, rights and obligations attributed to the activity in question. The Company's operations date back to 1 August 2013.

On 10 April 2015, upon the obtaining of a positive decision from the European Commission, the National Energy Regulatory Council (before National Commission for Energy Control and Prices) issued in respect of the Company an open-ended License No. L2-3 (GDP) for the engagement in the Transmission System Operator's activity within the territory of Lithuania.

The Company is engaged in the natural gas transmission system operator's activity and provides to system users, other operators, and gas market players the following services:

  • transmission of natural gas in the territory of the Republic of Lithuania;
  • balancing of natural gas flows in the transmission system;
  • administration of the funds intended to compensate for the installation and fixed operating costs of the Liquefied Natural Gas Terminal, its infrastructure and connector and, as from 2016, for reasonable costs of the designated supplier for the supply of an obligatory quantity of liquefied natural gas.

On 31 March 2020, the Company had 107 contracts for natural gas transmission services with the users of natural gas transmission system (natural gas costumers, natural gas distribution system operators, natural gas supply companies that supply gas up to customers systems). In addition, Company had entered into natural gas balancing agreements with 2 natural gas trade companies that trade natural gas, but do not use Company's transmission system infrastructure.

The Company's largest shareholder is UAB EPSO-G. UAB EPSO-G is 100-percent owned by the Republic of Lithuania and is managed by trust by the Ministry of Energy of the Republic of Lithuania. UAB EPSO-G is in charge of the management of the shareholdings of the electricity and gas transmission system operators of the Republic of Lithuania.

Since 1 August 2013, the Company's shares have been traded on a stock exchange; they are listed on the Baltic Secondary Trading List of NASDAQ OMX Vilnius Stock Exchange (ISIN code LT0000128696, instrument AMG1L).

As of 31 of March 2020 and 31 December 2019, the Company's shareholders were as follows:

Number of shares owned Ownership share (percent)
UAB EPSO-G (Company Code 302826889, Gedimino av. 20, Vilnius) 172,279,125 96.58
Other shareholders 6,103,389 3.42
178,382,514 100.00

The Company's share capital amounts to EUR 51,730,929.06. It is divided into 178,382,514 ordinary registered shares with par value of EUR 0.29 each.

Company Company code Registered address of the company Stake of shares held as of 31 December2019 Stake of shares held as of 31 December2018
UAB GET Baltic 302861178 Geležinio Vilko st. 18 A, Vilnius 100 % 100 %

AB AMBER GRID, company code 303090867, Savanorių g. 28, Vilnius, Lithuania

CONDENSED CONSOLIDATED AND THE COMPANY'S FINANCIAL STATEMENTS

AS OF 31 MARCH 2020

(all amounts are in euro thousand unless stated otherwise)

GET Baltic is a Joint Stock Company registered in the Republic of Lithuania. The Company was registered in the Register of Legal Entities on 13 September 2012. The Company is the sole shareholder of GET Baltic, which owns 100% of the authorized capital. On 31 March 2020 and 31 December 2019 the authorized capital of GET Baltic was valued of EUR 580,450 and it consists of 3,055,000 ordinary registered shares with a nominal value of EUR 0.19.

GET Baltic is a licensed natural gas market operator with a status of Registered Reporting Mechanism status provided by the ACER. The Company administers the electronic trading system for trading spot and forward natural gas products with physical delivery in the market areas located in Lithuania, Latvia, and Estonia. The Company also provides the following services to wholesale natural gas market participants:

  • Providing REMIT data to the ACER;
  • Providing inside information;
  • Distribution of indirect natural gas transmission capacity at interconnection points between the Baltic States;
  • Organizing LNG auction;
  • Announcement of balancing marginal pricing.

On 31 March 2020 Get Baltic had 96 registered stock exchange participants.

On 31 March 2020 the average number of employees of the Group and the Company consisted 323 (as at 31 March 2019 – 334); on 31 March 2020 the Company consisted of 316 employees (as at 31 March 2019 – 328).

2 Accounting principles

The financial statements present the figures in thousands of euros. The financial year of the Group and the Company coincides with the calendar year.

These condensed interim consolidated and the Company's financial statements, including the statements of financial standing and profit (loss) accounts, statements of comprehensive income, cash flow statement and the statements of changes in equity for the period ended 31 March 2020 have not been audited. The consolidated and the Company's financial statements for the period ended 31 December 2019 have been audited and prepared in accordance with International Financial Reporting Standards (IFRS).

For a better understanding of the information presented in these financial statements, these condensed financial statements should be read together with the annual consolidate and the Company's financial statements for the period ended 31 December 2019. UAB Deloitte Lietuva carried out an audit of Consolidated and Company's Financial Statements for the period ended on 31 December 2019.

The Group's and the Company's condensed interim consolidated financial statements as of 31 March 2020 were prepared in accordance with International Accounting Standard 34 Interim Financial Reporting. The Group and the Company have been following the same accounting principles as the ones that were followed in the preparation of financial statements for the year 2019.

The statements were prepared based on an acquisition cost, excluding tangible fixed assets, which were presented at revalued amount.

In accordance with the accounting principles of fixed assets of EPSO-G UAB group companies, assets are accounted at revalued amount deducting accumulated depreciation and impairment losses, whereas grants are accounted for by reducing the carrying amount of the related asset.

1 January 2019, the Company and the Group first adopted IFRS 16 and its amendments using a modified retrospective method, in which rights-of-use assets and liabilities were recognized in equal amounts, without any adjustment to equity.

14


AB AMBER GRID, company code 303090867, Savanorių g. 28, Vilnius, Lithuania

CONDENSED CONSOLIDATED AND THE COMPANY'S FINANCIAL STATEMENTS

AS OF 31 MARCH 2020

(all amounts are in euro thousand unless stated otherwise)

3 Information by segments

The Group singles out 2 operating segments: 1) natural gas transmission operations and 2) natural gas exchange operator activities.

All non-current assets of the Group are located in Lithuania, where the Company operates.

As of 31 March 2020, the Group generated 63 % (31 March 2019: 74 %) of its total revenue from the system users in Lithuania, and 33 % (31 March 2019: 25 %) of revenue totalled from transportation of gas to adjacent transmission systems accounted for 3% (31 March 2019: 2%) of revenue originated from the revenue from services provided by the Natural Gas Exchange.

The Group's information on segments for the period ended on 31 March 2020 is disclosed below:

Transmission activity Activities of the gas exchange Total
Revenues 13.139 471 13.610
Income having eliminated the income of Group entities 13.139 453 13.592
Profit / loss from operating activities 2.845 297 3.142
Net financing income (costs) (79) (1) (80)
Profit / loss before tax 2.766 296 3.062
Income tax 494 (13) 481
Net earnings (loss) 3.260 283 3.543
Depreciation / amortisation costs (2.694) (47) (2.741)
Write-offs of non-current tangible assets - - -

The Group's information on segments for the period ended on 31 March 2019 is disclosed below:

Transfer activity Activities of the gas exchange Total
Revenues 14.778 271 15.049
Income having eliminated the income of Group entities 14.775 261 15.036
Profit / loss from operating activities 5.676 144 5.820
Net financing income (costs) (107) - (107)
Profit / loss before tax 5.569 144 5.713
Income tax (1.006) (1.006)
Net earnings (loss) 4.563 144 4.707
Depreciation / amortisation costs (2.417) (27) (2.444)
Write-offs of non-current tangible assets 22 - 22

4 Non-current tangible and intangible assets

Non-current intangible assets Group Company
Residual value as of 31 December 2018 2.699 2.259
Additions 691 691
Amortisation (163) (136)
Netting of grants with the non-current assets - -
Residual value as of 31 March 2019 3.227 2.814
Residual value as of 31 December 2019 2.910 2.262
Additions 44 -
Amortisation (238) (197)
Netting of grants with the non-current assets - -
Residual value as of 31 March 2020 2.716 2.065

AB AMBER GRID, company code 303090867, Savanorių g. 28, Vilnius, Lithuania

CONDENSED CONSOLIDATED AND THE COMPANY'S FINANCIAL STATEMENTS

AS OF 31 MARCH 2020

(all amounts are in euro thousand unless stated otherwise)

Non-current tangible assets
Group
Company

Residual value as of 31 December 2018 200.031 200.028
Additions 1.178 1.177
Depreciation (2.241) (2.241)
Write-offs (161) (161)
Netting of grants with the non-current assets (542) (542)
Revaluation loss of fixed assets 198.265 198.261
Residual value as of 31 March 2019 201.362 201.359

Residual value as of 31 December 2019

Additions 22.947 22.946
Depreciation (2.402) (2.402)
Sales - -
Write-offs (1) (1)
Netting of grants with the non-current assets (10.326) (10.326)
Residual value as of 31 March 2020 211.580 211.576

In the Group and the Company, non-current assets are accounted at revalued amount of assets, reducing the grants received for that asset.

The amount of the depreciation of the grants in the income statement is reflected by deducting the depreciation costs of the related assets with the grant income, as of 31 March 2020, it stood at EUR 661 thousand (as of 31 March 2019 - EUR 566 thousand).

5 Construction in progress

The largest objects of construction in progress of the Group and Company as of 31 March 2020 and 31 December 2019 were as follows:

Object Group
31 December 2019 31 December 2019
Implementation of the gas interconnection Poland-Lithuania in the territory of Lithuania 15.499 4.304
Installation of control device releasing and receiving chambers 774 391
Implementation of operative technological control of gas transmission system 1.698 1.012
Construction of the gas transmission pipeline Vilnius-Kaunas and the connection Kaunas-Šakiai 551 551
Other 759 1.482
1) Less: impairment of construction in progress (580) (580)
18.701 7.160
  • Impairment for the Project "Construction of interconnection between the gas transmission pipelines Vilnius-Kaunas and Kaunas-Šakiai (spatial planning and design services)" was made for the amount of EUR 551 thousand because the construction of the pipeline was postponed for later periods and there arose certain uncertainties regarding the resolution of its funding issues and its further development.

6 The right-of-use assets and lease liabilities

As stated below, the Group and the Company leases office space, vehicles, and land. Lease terms for premises - 8-9 years, vehicles - 4 years, land - 99 years. The Group and the Company, in recognizing its right-of-use assets and lease liabilities by determining the lease terms assessed the likelihood of contract extension.


AB AMBER GRID, company code 303090867, Savanorių g. 28, Vilnius, Lithuania

CONDENSED CONSOLIDATED AND THE COMPANY'S FINANCIAL STATEMENTS

AS OF 31 MARCH 2020

(all amounts are in euro thousand unless stated otherwise)

Group
Buildings Land Motor vehicles Total
Initial value of recognised assets at 1 January 2019* 749 1.278 - 2.027
Acquisitions - - - -
Write-offs - - - -
Amortisation (35) (3) - (38)
Residual value at 31 March 2019 714 1.275 - 1.989
Residual value of recognised assets at 31 December 2019 723 1.265 13 2.001
Acquisitions 4 0 1.108 1.112
Write-offs 0 0 0 0
Amortisation (38) (3) (59) (100)
Residual value at 31 March 2020 689 1.262 1.062 3.013
Initial value 874 1.278 1.124 3.276
Accumulated depreciation (185) (16) (62) (263)
Residual value at 31 March 2020 689 1.262 1.062 3.013
  • The Company and its subsidiary as at 1 January 2019 and in prior periods did not have non-current assets held on a finance lease basis.
Company
Buildings Land Motor vehicles Total
Initial value of recognised assets at 1 January 2019* 749 1.278 - 2.027
Acquisitions - - - -
Write-offs - - - -
Amortisation (35) (3) - (38)
Residual value at 31 March 2019 714 1.275 - 1.989
Residual value of recognised assets at 31 December 2019 585 1.265 - 1.850
Acquisitions - - 1.108 1.108
Write-offs - - - -
Amortisation (33) (3) (58) (94)
Residual value at 31 March 2020 552 1.262 1.050 2.864
Initial value 719 1.278 1.108 3.105
Accumulated depreciation (167) (16) (58) (241)
Residual value at 31 March 2020 552 1.262 1.050 2.864
  • The Company as at 1 January 2019 and in prior periods did not have non-current assets held on a finance lease basis.

As the useful life of the right-of-use assets is longer than the lease term, depreciation is calculated from the commencement date of the lease to the end of the lease term.

17


AB AMBER GRID, company code 303090867, Savanorių g. 28, Vilnius, Lithuania

CONDENSED CONSOLIDATED AND THE COMPANY'S FINANCIAL STATEMENTS

AS OF 31 MARCH 2020

(all amounts are in euro thousand unless stated otherwise)

Group Company
At 31 March 2020 At 31 March 2020
Carrying amount at the beginning of the period 2009 1857
Recognition of lease liabilities under IFRS 16 4
Concluded lease contracts 1108 1108
Termination of leases (write-offs of debts and accrued interest) 0
Interest expenses 6 6
Lease payments (Principal and Interest) (89) (83)
Carrying amount at 31 March 3038 2888
Non-current lease liabilities 2603 2476
Current lease liabilities 435 412
Group
At 31 March 2020 At 31 December 2019
Lease liabilities
Current year 435 160
Repayment terms of non-current liabilities: 2.603 1.849
Between 1 and 2 years 438 161
From 2 to 3 years 440 162
From 3 to 5 years 451 248
After 5 years 1.274 1.278
Company
Lease liabilities At 31 March 2020 At 31 December 2019
Current year 412 138
Repayment terms of non-current liabilities: 2.476 1.719
Between 1 and 2 years 415 138
From 2 to 3 years 417 139
From 3 to 5 years 411 209
After 5 years 1.233 1.233

Interest calculated on lease liabilities reflected in Group's financial operating expenses is EUR 6 thousand.

The Group and the Company had no leases with variable payments not included in the value of lease obligations.

In 2020, the Group made lease payments worth EUR 89 thousand.

7 Trade receivables

Group Company
31 March 2020 31 December 2019 31 March 2020 31 December 2019
Non-current trade receivables
Other trade receivables - - - -
Current trade receivables
Gas transmission services receivables 4.359 5.524 4.362 5.524
Other trade receivables 1.834 406 479 411
Less: allowance for the decrease in value of trade receivables (70) (70) (70) (70)
6.123 5.860 4.771 5.865

AB AMBER GRID, company code 303090867, Savanorių g. 28, Vilnius, Lithuania

CONDENSED CONSOLIDATED AND THE COMPANY'S FINANCIAL STATEMENTS

AS OF 31 MARCH 2020

(all amounts are in euro thousand unless stated otherwise)

Short-term trade receivables were interest-free; their payment period ranged from 9 to 30 calendar days. In Impairment of EUR 41 thousand was established in respect of "Geoterma" UAB, a producer of thermal energy, whereas "Geros dujos" UAB formed impairment of EUR 29 thousand.

8 Other receivables

Group Company
31 March 2020 31 December 2019 31 March 2020 31 December 2019
LNG terminal funds receivable (administered by the Company) 11.031 16.020 11.031 16.020
Grants receivable 11.238 2.754 11.238 2.754
Receivables accrued for natural gas transportation 146 541 146 541
Other receivables 72 76 70 73
22.487 19.391 22.485 19.388

The LNG terminal funds receivable as at 31 March 2020 include the overdue amount of EUR 4.831 thousand (as at 31 December 2019 - EUR 4.701) of which total the overdue amount of AB "Achema's" was EUR 4.745 thousand, the overdue amount of UAB "Geros dujos" was EUR 19 thousand, the overdue amount of UAB "Geoterma" was EUR 65 thousand and the overdue amount of UAB "Žiežmarių gėlės" was EUR 2 thousand. For more information about AB "Achema" see note 18 Commitments and Contingencies.

For the Company's Other Receivables, no impairment loss was formed.

9 Other financial assets

As of 31 March 2020, the Group and Company's other financial assets consisted of cash collected from the additional natural gas supply security component to be included in the natural gas transmission price, referred to as the LNG terminal funds. These funds are received from the system users, kept in line with the requirements of legal acts in a separate bank account for the LNG terminal funds and designated for the payment to the recipients of the LNG terminal funds – i.e. the LNG terminal operator (Klaipėdos Nafta AB), the designated supplier (UAB "Ignitis" former UAB „Lietuvos energijos tiekimas"), and Amber Grid AB – to cover the administration expenses of the LNG terminal funds. Based on the Resolution No. O3E-766 of 25 November 2019 (amendment Resolution No. O3E-924 of 31 December 2019) the new natural gas supply security component has been effected from 1 January 2020.

The advance payment funds received by gas exchange members as at 31 March 2020 are accounted for EUR 8.939 thousand (as at 31 December 2019 – EUR 18.644).

Group Company
31 March 2019 31 December 2019 31 March 2019 31 December 2019
Funds of the LNG terminal 29 4 29 4
Funds transferred by the gas exchange members 8.939 18.644 -
8.968 18.648 29 4

The Group and the Company keeps its cash in the accounts of those banks, which meet reliability requirements.


AB AMBER GRID, company code 303090867, Savanorių g. 28, Vilnius, Lithuania

CONDENSED CONSOLIDATED AND THE COMPANY'S FINANCIAL STATEMENTS

AS OF 31 MARCH 2020

(all amounts are in euro thousand unless stated otherwise)

10 Loans

Group Company
31 March 2020 31 December 2019 31 March 2020 31 December 2019
Long-term loans
Loans from credit institutions of Lithuania 30.000 30.000 30.000 30.000
Loans from international financial institutions 20.652 21.739 20.652 21.739
Short-term loans
Loans from credit institutions of Lithuania - - - -
Short-term loan (EPSO-G UAB) 15.305 6.452 15.125 6.272
Current portion of long-term loans 13.618 13.618 13.618 13.618
79.575 71.809 79.395 71.629

For the balancing of working capital on 27 February 2019 the Company and EPSO-G UAB entered into lending and borrowing via cash pool agreement. The agreement sets a maximum borrowing limit of EUR 15.000 thousand from EPSO-G UAB. On 31 March 2020 an additional agreement was signed, which increased the maximum borrowing limit to 35,000 thousand euros.

The weighted average of the interest of the Group and Company loans as of 31 March 2020 and 31 December 2019 was at 0,49 per cent.

11 Income tax

In 2020, the standard corporate income tax rate applicable to the companies of the Republic of Lithuania was 15 per cent (in 2019: 15 per cent). The income tax expenses for the period comprise the current income tax and the deferred income tax.

In accordance with amendments to the Law on Corporate Income Tax, which provide for a possibility of taking advantage of the corporate income tax relief on investments in new technologies, as at 31 March 2020, the Company had calculated a corporate income tax relief amounting to EUR 912 thousand (as at 31 December 2019: EUR 218 thousand).

12 Trade payables

Group Company
31 March 2020 31 December 2019 31 March 2020 31 December 2019
Payables to suppliers under investment programme (reconstruction and modernisation) 9.440 1.440 9.440 1.440
Payables to suppliers of goods and providers of services 615 1.280 602 1.195
Payables to providers of repairs services under non-current assets repairs programme 86 396 86 396
Payables to suppliers of natural gas 3.400 3.851 521 1.160
13.541 6.967 10.649 4.191

As at 31 March 2020, the trade payables were interest-free and the payment terms of the largest share of them ranged from 30 to 60 days.

13 Received advanced payments


AB AMBER GRID, company code 303090867, Savanorių g. 28, Vilnius, Lithuania

CONDENSED CONSOLIDATED AND THE COMPANY'S FINANCIAL STATEMENTS

AS OF 31 MARCH 2020

(all amounts are in euro thousand unless stated otherwise)

Prepayments received by the Group on 31 March 2020 was in amount of EUR 7.584 thousand (as of 31 December 2019 EUR -17.103 thousand). Advance payments received by the Company are the payments received from the EU for investment projects, advance payments for the provision of transmission services and gas exchange members.

GET Baltic advance payments paid by the participants of Exchange are accounted for as prepayments received from the exchange participants and are used on the settlement date, unless a request is made from the participants not to use the advance paid for reduction of the amount due for gas and exchange services. An unused advance or part thereof remains with the other participant's settlements. If the participant does not use the advance for more than 1 year, it is returned back to him.

14 Other payables and current liabilities

Group Company
31 March 2019 31 December 2019 31 March 2020 31 December 2019
Payable LNG terminal funds administrated by the Company 10.221 13.562 10.221 13.562
Accrued LNG terminal funds subject to administration by the Company* 839 2.461 839 2.461
Real Estate Tax payable - 432 - 432
Value Added Tax (VAT) payable 430 501 352 222
Other payables 389 480 337 469
11.879 17.436 11.749 17.146

*Accrued LNG terminal funds subject to administration by the Company are accounted when natural gas transmission system users are issued VAT invoices, Accrued funds subject to administration by the Company are included into the account of LNG terminal funds payable when AB "Klaiplédos Nafta" and UAB "Ignitis" former UAB „Lietuvos energijos tiekimas" issue a VAT invoice to the Company in respect of the security-of-supply-related extra tariff component added to the regular natural gas tariff.

15 Earnings per share

Basic earnings per share reflect the Group net profit divided by the weighted average number of shares. There are no diluting instruments, therefore basic and diluted earnings per share are equal. Calculations of the basic earnings per share are presented below:

Group
31 March 2020 31 March 2019
Net profit (loss) attributable to the shareholders (EUR thousand) 3.543 4.707
Weighted average number of shares (thousand) 178.383 178.383
Earnings per share (EUR) 0,02 0,03

16 Dividends

The annual meeting of shareholders of the Company of 23 April 2019 approved the dividends for the year ended 31 December 2018; the dividends accounted for EUR 5.227 thousand or EUR 0,0293 per share. In view of the decision of the market regulator in 2019 to set a significantly lower allowable income level for the company for 2020 year due to exceeding the return on investment in previous years and at the same time increasing the need for investments in the construction of the GIPL gas pipeline with Poland, the shareholders' meeting on 20 April 2020 approved the proposal of the Board of Amber Grid to keep the earned profit in the company. During 2020 year dividends approved by shareholders in previous periods were paid.


AB AMBER GRID, company code 303090867, Savanorių g. 28, Vilnius, Lithuania

CONDENSED CONSOLIDATED AND THE COMPANY'S FINANCIAL STATEMENTS

AS OF 31 MARCH 2020

(all amounts are in euro thousand unless stated otherwise)

17 Adjustments to comparative information

The impact of changes in deposit accounting policy

In the consolidated financial statements for the period ended March 31 2019 funds transferred by the gas exchange members are presented in Cash and cash equivalents item. In Group and Company's accounting policy there are provided to present similar types of funds from exchange members as financial asset item. Following the change in accounting policy in 2019, the comparative data in financial statements were restated for the period ended 31 March 2019 by reclassifying the mentioned funds from the item of Cash and cash equivalents item to the item of Other financial assets. The Group believes that the amendment will more accurately and transparently reflect the balance sheet structure of the Group's companies. The impact of the adjustment on the Group's financial performance is set out below:

| CONSOLIDATED STATEMENT OF CASH FLOWS
In euro thousand | Group
31 March 2019
(before adjustment) | Impact of adjustments | Group
31 March 2019 (after adjustment) |
| --- | --- | --- | --- |
| Decrease (increase) in other financial assets | 54 | 3.967 | 4.020 |
| Net increase (decrease) in cash and cash equivalents | (3.812) | 3.967 | 155 |
| Cash and cash equivalents at the beginning of the period | 10.616 | (10.574) | 42 |
| Cash and cash equivalents at the end of the period | 6.804 | (6.607) | 197 |

The impact of the application of IFRS 16 to land lease

In 2019 Group applied the provisions of IFRS 16 to land lease, the impact of the application of the standard on comparative Group's financial results in the income statement on 31 March 2019 are presented below:

| COSOLIDATED INCOME STATEMENT
In euro thousand | Group
31 March 2019
(before adjustment) | Impact of adjustments | Group
31 March 2019 (after adjustment) |
| --- | --- | --- | --- |
| Depreciation and amortization | (2.441) | (3) | (2.444) |
| Taxes other than income tax | (453) | 4 | (449) |
| OPERATION PROFIT (LOSS) | 5.819 | 1 | 5.820 |
| FINANCIAL ACTIVITY | (102) | (5) | (107) |
| Income | (105) | (5) | (110) |
| Expense | 3 | - | 3 |
| PROFIT BEFORE INCOME TAX | 5.717 | (4) | 5.713 |
| NET PROFIT (LOSS) | 4.711 | (4) | 4.707 |

The impact on the Company's comparable results coincides with the impact on the Group's results.

18 Commitments and contingencies

Litigations

Currently, the Company has initiated two civil cases on the adjudication of the additional component, regarding the security of natural gas supply, to the natural gas transmission price (hereinafter - LNG terminal funds) from Achema AB. The Company acts solely as a LNG terminal funds administrator and transfers LNG terminal funds to its recipients only after collecting them from buyers, so there is no credit risk arising from the disputed amounts.

In addition, the lawsuit is pending at courts regarding the legality of the decisions of the Company's Procurement Commission at the time of the procurement of GIPL project contract works (Procurement No. 381642). On 29


AB AMBER GRID, company code 303090867, Savanorių g. 28, Vilnius, Lithuania

CONDENSED CONSOLIDATED AND THE COMPANY'S FINANCIAL STATEMENTS

AS OF 31 MARCH 2020

(all amounts are in euro thousand unless stated otherwise)

February 2020, the Vilnius Regional Court issued a decision partially upholding the claim, but did not change the outcome of the procurement. Currently, the parties to this case have lodged their appeals.

19 Related party transactions

As at 31 March 2020 and 31 December 2019, the parent company was EPSO-G UAB. The parent country of the latter company was the Republic of Lithuania, represented by the Ministry of Energy of the Republic of Lithuania. For the purposes of related-party disclosures, the Republic of Lithuania does not include central or local authorities. Disclosures include transactions and balances with EPSO-G Group companies, subsidiaries, all state-controlled companies or those under significant influence (transactions with such entities are disclosed separately only if the amount of transactions exceeds EUR 100,000 in a calendar year) and management, and close family members. A list of publicly-controlled entities or those under significant influence that are subject to disclosure is provided here: https://vkc.sipa.lt/apie-imones/vvi-sarasas/.

The Company's/Group's related parties as at 31 March 2020 and 31 December 2019 were as follows:

  • EPSO-G (the parent company). 100% of EPSO-G share capital is owned by the Ministry of Energy of the Republic of Lithuania;

Epso-G UAB Group companies:

  • Litgrid AB (common shareholders);
  • Tetas UAB (common shareholders);
  • Baltpool UAB (common shareholders).

The subsidiary of the Company GET Baltic UAB;

Ignitis grupė UAB companies:

  • Energijos skirstymo operatorius AB;
  • Ignitis UAB;
  • Ignitis gamyba UAB;
  • Energetikos paslaugų ir rangos organizacija UAB

Other state-controlled companies:

  • Klaipėdos nafta AB;
  • State Enterprise Ignalina Nuclear Power Plant;
  • State Enterprise Geoterma
  • Other state-controlled companies or those under significant influence.
  • Management.

The tables below show the Group's and the Company's receivables and payables from related parties as at 31 March 2020 and 31 December 2019. Transactions with related parties are disclosed for the three-month period ended 31 December 2020 and 31 March 2019:

Group
Acquisitions Sales Accounts receivable Loans granted Accounts payable Costs of financial operations
UAB „EPSO - G“ 39 - - 15.305 40 9
UAB „TETAS“ - - - - - -
UAB „Ignitis gamyba“ - 10.783^{2)} 1.743^{2)} - 4.358 -
AB „Energijos skirstymo operatorius“ 58 117 47 - 12 -
UAB „Ignitis“ 21.194^{2)} 11.319^{2)} 2.973^{2)} - 3.897^{2)} -
UAB „Transporto valdymas“ 58 - - - 37 -
AB „Klaipėdos nafta“ 9.625^{2)} - - - 6.986^{2)} -
VJ Ignalinos atominė - 41 20 - - -
VJ „Geoterma“ - - 110 - - -
Kitos valstybės valdomos įmonės 14 - - - 7 -
30.988 22.260 4.893 15.305 15.300 9

AB AMBER GRID, company code 303090867, Savanorių g. 28, Vilnius, Lithuania

CONDENSED CONSOLIDATED AND THE COMPANY'S FINANCIAL STATEMENTS

AS OF 31 MARCH 2020

(all amounts are in euro thousand unless stated otherwise)

Acquisitions Sales Accounts receivable Loans granted Accounts payable Costs of financial operations
UAB „EPSO - G“ 22 - - 6.452 21 1
UAB „TETAS“ - - - - 1 -
UAB „Ignitis gamyba“ - 5.711^{2)} 2.037^{2)} - 225 -
AB „Energijos skirstymo operatorius“ 43 294 84 - 2 -
UAB „Ignitis“ 10.093^{2)} 11.440^{2)} 4.191^{2)} - 6.248^{1)} -
AB „Klaipėdos nafta“ 17.581^{2)} - - - 10.156^{2)} -
VJ Ignalinos atominė - 57^{2)} 29^{2)} - - -
VJ „Geoterma“ - - 110^{2)} - - -
Kitos valstybės valdomos įmonės 9 - - - 8 -
27.748 17.502 6.451 6.452 16.661 1
Company
--- --- --- --- --- --- ---
Acquisitions Sales Accounts receivable Loans granted Accounts payable Costs of financial operations
UAB GET Baltic 1.915^{1)} 11^{1)} 3^{1)} 360^{1)} -
UAB „EPSO - G“ 39 - - 15.125 40 8
UAB „TETAS“ - - - - - -
UAB „Ignitis gamyba“ - 4.267^{2)} 1.743^{2)} - - -
AB „Energijos skirstymo operatorius“ 58 117 47 - 12 -
UAB „Ignitis“ 7.824^{2)} 7.885^{2)} 2.954^{2)} - 3.387^{2)} -
UAB „Transporto valdymas“ 58 - - - 37 -
AB „Klaipėdos nafta“ 9.625^{2)} - - - 6.986^{2)} -
VJ Ignalinos atominė - 41 20 - - -
VJ „Geoterma“ - - 110 - - -
Kitos valstybės valdomos įmonės 13 - - - 6 -
19.532 12.321 4.877 15.125 10.828 8
Acquisitions Sales Accounts receivable Loans granted Accounts payable Costs of financial operations
--- --- --- --- --- --- ---
UAB GET Baltic 1.508^{1)} 48^{1)} 16^{1)} - 354^{1)} -
UAB „EPSO - G“ 22 - - 6.272 21 1
UAB „TETAS“ - - - - 1 -
UAB „Ignitis gamyba“ - 5.012^{2)} 2.037^{2)} - - -
AB „Energijos skirstymo operatorius“ 43 294 84 - 2 -
UAB „Ignitis“ 8.312^{2)} 11.261^{2)} 4.190^{2)} - 4.184^{2)} -
AB „Klaipėdos nafta“ 17.581^{2)} - - - 10.156^{2)} -
VJ Ignalinos atominė - 57^{2)} 29^{2)} - - -
VJ „Geoterma“ - - 110^{2)} - - -
Kitos valstybės valdomos įmonės 9 - - - 7 -
27.475 16.672 6.466 6.272 14.725 1

1) The Company is a participant of the Natural Gas Exchange operated by Get Baltic UAB and has a participation agreement. The agreement is on standard terms and the under the same terms and conditions as with the other participants. The amount represents the purchases and sales made through this Exchange.
2) LNG terminal funds included.

There have been none guaranties received to the revenue obtained and payable by the related parties. On 31 March 2020 the Company and Group did not form and accounted the depreciation of value to the revenue received from the related parties.


AB AMBER GRID, company code 303090867, Savanorių g. 28, Vilnius, Lithuania

CONDENSED CONSOLIDATED AND THE COMPANY'S FINANCIAL STATEMENTS

AS OF 31 MARCH 2020

(all amounts are in euro thousand unless stated otherwise)

Benefits to the Management

Group Company
2019 m. 31 December 2018 m. 31 December 2019 m. 31 December 2018 m. 31 December
Earnings-related benefits 106 114 89 100
Benefits for Board Members 6 4 6 4
112 118 95 104

The management of the Group and the Company includes the CEO and the Directors of Technical, Legal and Administrative, Commercial and Finance. No loans, guarantees or assets have been granted to the management of the Group and the Company.

20 Assessment of the impact of COVID-19 on demand and results, significant increase in credit risk, expected credit losses

Considering the state-level emergency in Lithuania due to the spread threat of the new coronavirus (COVID-19), business continuity and preventive measures have been reviewed and implemented by the Group and the Company: responsible personnel for monitoring the situation and providing information to the Company's management has been appointed; units and personnel performing critical functions and administering the key systems have been identified; additional organizational measures at system control centers are being applied; technical and replacement measures in case of the virus spread have been planned. The company also reviewed its emergency management plan and prepared for additional continuity of critical activities.

According to a survey of the company's main customers in March and updated baseline revenue forecast for 2020, no significant adverse effects due to COVID-19 have been identified. Assessing the impact of the pesimistic scenario, in 2020 the decrease in revenue compared to the baseline scenario amounts to EUR 500 thousand and no significant effect on the change in credit risk was identified during the analysis.

The Company does not forecast liquidity or credit risk issues. The main clients are large companies, which are often also regulated and / or listed as risk-free. At the time of reporting, settlements took place as usual, however the Company have been taken measures to strengthen payment controls. Historically, payments for energy and / or utilities have been a priority and delays are being significantly reduced. The Company plans regularly update its credit risk assessments on the economic environment changes.

Short-term borrowing is guaranteed to the extent of EPSO-G. The Company has a sufficient short-term borrowing limit (overdraft) ensuring current solvency.

Cooperation with commercial and institutional banks takes place without changeovers; considering the significance of the energy sector, the Company would be financed if such a need became relevant.

Due to COVID-19, the Company till 31 Mach 2020 incurred costs in amount of EUR 7 thousand, i.e. EUR 3 thousand for additional wages and salaries for isolated employees, EUR 3 thousand for the acquisition of security measures and operation of the premises, EUR 1 thousand for the cancellation of business trips during the quarantine period.

21 Subsequent events

There were no subsequent events that could materially affect the Company's financial statements prior to the date of approval of the financial statements.

25