Amber Grid — Interim / Quarterly Report 2021

May 5, 2021

Kvalifikustas elektroninis parailas

RASA BALTARAGIENĖ

2021-05-05 09:28:24 GMT+3

Paaletko: Parailas

Kvalifikustas elektroninis parailas

NEMUNAS BIKNIUS

2021-05-05 10:01:41 GMT+3

Paaletko: Parailas

AB AMBER GRID

CONDENSED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

AS OF 31 MARCH 2021

PREPARED ACCORDING TO INTERNATIONAL FINANCIAL REPORTING STANDARDS

AS ADOPTED BY THE EUROPEAN UNION

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

CONDENSED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

AS OF 31 MARCH 2021

Consolidated and separate Statement of financial position
(All amounts are in EUR '000 unless otherwise stated)

	Notes	Group		Company
		At 31 March 2021	At 31 December 2020	At 31 March 2021	At 31 December 2020
ASSETS
A.	Non-current assets		259,736	255,757	259,664	255,649
I.	Intangible assets	5	4,591	4,833	3,979	4,189
II.	Property, plant and equipment	5	246,248	241,624	246,242	241,620
II.1.	Land		125	125	125	125
II.2.	Buildings		5,340	5,427	5,340	5,427
II.3.	Plant and equipment		145,039	146,003	145,039	146,003
II.4.	Machinery and equipment		33,738	34,583	33,738	34,583
II.5.	Motor vehicles		500	542	500	542
II.6.	Other		3,306	3,171	3,300	3,167
II.7.	Construction in progress	6	58,200	51,773	58,200	51,773
III.	The right-of-use assets	7	2,223	2,335	2,098	2,204
IV.	Non-current financial assets		4	4	675	675
IV.1	Investment in the subsidiary		-	-	675	675
IV.2.	Non-current trade receivables	8	-	-	-	-
	Other non-current financial
IV.3	assets		4	4	-	-
V.	A deferred tax asset		6,670	6,961	6,670	6,961
B.	Current assets		68,022	60,614	52,978	49,144
I.	Inventories and prepayments		3,232	2,626	3,178	2,611
I.1.	Raw materials, spare parts and other inventories		2,409	1,897	2,409	1,897
I.2.	Prepayments		823	729	769	714
II.	Accounts receivable		50,628	47,377	48,064	45,356
II.1.	Trade receivables	8	8,081	7,870	5,742	5,851
II.2.	Other receivables	9	42,547	39,507	42,322	39,505
III.	Corporate income tax paid in advance		1,643	1,171	1,643	1,171
IV.	Other financial assets	10	11,494	8,673	88	3
V.	Cash and cash equivalents		1,025	767	5	3
	Total assets		327,758	316,371	312,642	304,793

(cont'd on the next page)

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

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

CONDENSED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

AS OF 31 MARCH 2021

Consolidated and separate Statement of financial position (cont'd)
(All amounts are in EUR '000 unless otherwise stated)

	Notes	Group		Company
		At 31 March 2021	At 31 December 2020	At 31 March 2021	At 31 December 2020
EQUITY AND LIABILITIES
C.	Equity		163,884	154,830	163,080	154,410
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)		37,515	28,461	36,711	28,041
D.	Accounts payable and liabilities		163,874	161,541	149,562	150,383
I.	Amounts payable after one year and non-current liabilities		106,335	107,506	106,231	107,396
I.1.	Non-current borrowings	11	100,478	101,565	100,478	101,565
	A right-of-use asset and
I.2.	corresponding liability	7	1,876	1,953	1,772	1,843
I.3.	Contract liabilities	12	1,330	1,337	1,330	1,337
I.4.	Non-current employee benefits		509	509	509	509
I.5.	Deferred income tax liability		-	-	-	-
I.6.	Other non-current liabilities		-	-	-	-
I.7.	Provisions		2,142	2,142	2,142	2,142
	Accounts payable within one year and short-term liabilities		57,539	54,035	43,331	42,987
II.1.	Current financial liability	11	11,186	7,852	11,186	7,852
	Current portion of non-current borrowings
II.2.	A right-of-use asset and corresponding liability	7	377	410	354	387
II.4.	Current year portion of non-current employee benefits		39	39	39	39
II.5.	Trade payables	14	13,770	10,429	5,795	8,151
II.6.	Advance amounts and contract liabilities	15	6,231	8,558	297	312
II.7.	Income tax payable		51	51	-	-
II.8.	Payroll related liabilities		3,136	2,140	3,001	2,054
II.9.	Other payables and current liabilities	16	12,538	14,345	12,448	13,981
II.10.	Provisions		37	37	37	37
	Total equity and liabilities		327,758	316,371	312,642	304,793

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

Chief Executive Officer	Nemunas Biknius	5 May 2021
Head of accounting	Rasa Baltaragienė	5 May 2021

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

CONDENSED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

AS OF 31 MARCH 2021

Consolidated and separate statement of profit or loss
(All amounts are in EUR '000 unless otherwise stated)

	Group		Company
		Notes	For the period of three months ended 31 March 2021	For the period of three months ended 31 March 2020¹)	For the period of three months ended 31 March 2021
I.	Revenue	4,19	19,190	13,600	18,599
II.	Expenses		(9,786)	(10,450)	(9,585)
II.1.	Cost of natural gas		(1,920)	(3,068)	(1,920)
II.2.	Depreciation and amortization		(2,888)	(2,741)	(2,843)
II.3.	Remuneration and related social security tax expenses		(2,758)	(2,451)	(2,656)
II.4.	Repair and technical maintenance expenses		(660)	(671)	(660)
II.5.	Taxes other than income tax		(498)	(496)	(498)
II.6.	Telecommunications and IT systems expenses		(353)	(354)	(332)
II.7.	Other expenses		(709)	(669)	(676)
III.	Operation profit (loss)	19	9,404	3,150	9,014
IV.	Financial activity		(59)	(80)	(53)
IV.1.	Income		1	1	1
IV.2.	Expense		(60)	(81)	(54)
V.	Profit (loss) before income tax	19	9,345	3,070	8,961
VI.	Income tax	19	(291)	480	(291)
VI.1.	Current period income tax		-	(13)	-
VI.2.	Deferred income tax		(291)	493	(291)
VII.	Net profit (loss)	19	9,054	3,550	8,670
	Basic and diluted earnings (loss) per share (Eur)	17	0,05	0,02	0,05

¹) The comparative figures have been restated for changes in accounting policy of revenue from connection fees of new consumers; see Note 19 for a detailed disclosure of the restatement effects.

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

Chief Executive Officer	Nemunas Biknius	5 May 2021
Head of accounting	Rasa Baltaragienė	5 May 2021

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

CONDENSED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

AS OF 31 MARCH 2021

Consolidated and separate Statement of comprehensive income

(All amounts are in EUR '000 unless otherwise stated)

	Group		Company
	For the period of three months ended 31 March 2021	For the period of three months ended 31 March 2020¹)	For the period of three months ended 31 March 2021	For the period of three months ended 31 March 2020¹)
I. Net profit (loss)	9,054	3,550	8,670	3,267
II. Total comprehensive income (loss)	9,054	3,550	8,670	3,267

¹) The comparative figures have been restated for changes in accounting policy of revenue from connection fees of new consumers; see Note 19 for a detailed disclosure of the restatement effects.

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

Chief Executive Officer	Nemunas Biknius	5 May 2021
Head of accounting	Rasa Baltaragienė	5 May 2021

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

CONDENSED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

AS OF 31 MARCH 2021

Consolidated Statement of changes in equity

(All amounts are in EUR '000 unless otherwise stated)

Group	Share capital	Legal reserve	Other reserves	Retained earnings (deficit)	Total
Balance as of 31 December 2019^{1)}	51,731	5,173	69,465	10,291	136,660
Total comprehensive income (loss)	-	-	-	3,550	3,550
Net profit (loss) for the year	-	-	-	3,550	3,550
Balance as of 31 March 2020^{1)}	51,731	5,173	69,465	13,841	140,210
Total comprehensive income (loss)	-	-	-	14,620	14,620
Net profit (loss) for the year	-	-	-	14,620	14,620
Balance as of 31 December 2020	51,731	5,173	69,465	28,461	154,830
Total comprehensive income (loss)	-	-	-	9,054	9,054
Net profit (loss) for the year	-	-	-	9,054	9,054
Balance as of 31 March 2021	51,731	5,173	69,465	37,515	163,884

1) The comparative figures have been restated for changes in accounting policy of revenue from connection fees of new consumers; see Note 19 for a detailed disclosure of the restatement effects.

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

Chief Executive Officer	Nemunas Biknius	5 May 2021
Head of accounting	Rasa Baltaragienė	5 May 2021

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

CONDENSED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

AS OF 31 MARCH 2021

Company's Statement of changes in equity

(All amounts are in EUR '000 unless otherwise stated)

Company	Share capital	Legal reserve	Other reserves	Retained earnings (deficit)	Total
Balance as of 31 December 2019^{1)}	51,731	5,173	69,465	10,609	136,978
Total comprehensive income (loss)	-	-	-	3,267	3,267
Net profit (loss) for the year	-	-	-	3,267	3,267
Balance as of 31 March 2020^{1)}	51,731	5,173	69,465	13,876	140,245
Total comprehensive income (loss)	-	-	-	14,165	14,165
Net profit (loss) for the year	-	-	-	14,165	14,165
Balance as of 31 December 2020	51,731	5,173	69,465	28,041	154,410
Total comprehensive income (loss)	-	-	-	8,670	8,670
Net profit (loss) for the year	-	-	-	8,670	8,670
Balance as of 31 March 2021	51,731	5,173	69,465	36,711	163,080

1) The comparative figures have been restated for changes in accounting policy of revenue from connection fees of new consumers; see Note 19 for a detailed disclosure of the restatement effects.

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

Chief Executive Officer
Nemunas Biknius
5 May 2021

Head of accounting
Rasa Baltaragienė
5 May 2021

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

CONDENSED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

AS OF 31 MARCH 2021

Consolidated and separate Statement of cash flows
(All amounts are in EUR '000 unless otherwise stated)

	Notes	Group		Company
		For the period of three months ended 31 March 2021	For the period of three months ended 31 March 2020¹⁾	For the period of three months ended 31 March 2021	For the period of three months ended 31 March 2020¹⁾
I.	Cash flows from operating activities
I.1.	Net profit (loss)	19	9,054	3,550	8,670	3,267
	Adjustments for non-cash items and other corrections:
I.2.	Depreciation and amortisation		2,888	2,741	2,843	2,694
I.3.	Loss (profit) on disposal and write-off of property, plant and equipment, doubtful trade receivables and inventories		26	-	26	-
I.4.	Impairment (reversal of impairment) of property, plant and equipment, financial assets, doubtful trade receivables and inventories		33	75	33	75
I.5.	Income tax expenses (benefit)	19	291	(480)	291	(493)
I.6.	Interest (income)		-	-	-	-
I.7.	Interest expenses		52	82	52	81
I.8.	(Amortisation) of grants (deferred revenue)		-	-	-	-
I.9.	Elimination of other non-cash items		1	1	1	-
	Changes in working capital:		12,345	5,969	11,916	5,624
I.10.	Decrease (increase) in inventories		(515)	576	(515)	576
I.11.	(Increase) decrease in trade receivables		(211)	(264)	109	1,093
I.12.	(Increase) decrease in other receivables and prepayments		1,757	6,569	1,980	6,571
I.13.	(Decrease) increase in trade payables		3,952	(9,718)	(1,745)	(1,541)
I.14.	(Decrease) increase in other payables and current liabilities	19	(3,128)	(5,867)	(591)	(5,748)
I.15.	(Increase) decrease in other financial assets		(2,820)	9,680	(84)	(25)
I.16.	Income tax (paid)		(472)	(125)	(472)	(125)
	Total changes in working capital		(1,437)	851	(1,318)	801
	Net cash flows from operating activities		10,908	6,820	10,598	6,425
II.	Cash flows from investing activities
II.1.	(Acquisition) of property, plant and equipment and intangible assets		(13,098)	(15,042)	(13,050)	(14,933)
II.2.	Proceeds on disposal of property, plant and equipment		-	-	-	-
II.3.	Grants received		452	743	452	743
II.4.	Loans granted (repayments received)		-	-	-	-
II.5.	Interest received		-	-	-	-
	Net cash flows (used) in investing activities		(12,646)	(14,299)	(12,598)	(14,190)

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

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

CONDENSED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

AS OF 31 MARCH 2021

Consolidates and separate statements of cash flows (cont'd)

(All amounts are in EUR '000 unless otherwise stated)

	Group		Company
	Notes	For the period of three months ended 31 March 2021	For the period of three months ended 31 March 2020 1)	For the period of three months ended 31 March 2021
III. Cash flows from financing activities
III.1. Dividends (paid)		-	(1)	-
III.2. Proceeds from borrowings		-	-	-
III.3. (Repayments) of borrowings		(1,087)	(1,087)	(1,087)
III.4. Change in overdraft		3,334	8,853	3,334
III.5. Interest (paid)		(135)	(124)	(135)
III.6. Liabilities settled in relation to right-of-use assets		(116)	(60)	(110)
III.7. Other cash flows from financing activities		-	-	-
Net cash flows from (used in) financing activities		1,996	7,581	2,002
IV. Net increase (decrease) in cash and cash equivalents		258	102	2
V. Cash and cash equivalents at the beginning of the year		767	233	3
VI. Cash and cash equivalents at the end of the year		1,025	335	5

1) The comparative figures have been restated for changes in accounting policy of revenue from connection fees of new consumers; see Note 19 for a detailed disclosure of the restatement effects.

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

Chief Executive Officer

Nemunas Biknius

5 May 2021

Head of accounting

Rasa Baltaragiene

5 May 2021

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

CONDENSED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

AS OF 31 MARCH 2021

Notes to the consolidated and separate financial Statements

(All amounts are in EUR '000 unless otherwise stated)

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 2021, the Company had 107 contracts for natural gas transmission services with the users of natural gas transmission system (natural gas customers, 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 1 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 (www.epsog.lt). The rights and obligations of the sole shareholder of the management company UAB EPSO - G are implemented by the Ministry of Energy 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, LEI code 097900BGMP0000061061).

As of 31 of March 2021 and 31 December 2020, 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 March 2021	Stake of shares held as of 31 December 2020
UAB GET Baltic	302861178	Geležinio Vilko st. 18 A, Vilnius	100 %	100 %

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

CONDENSED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

AS OF 31 MARCH 2021

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 2021 and on 31 December 2020 the share 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 2021 Get Baltic had 99 registered stock exchange participants.

On 31 March 2021 the average number of employees of the Group and the Company consisted of 325 (as at 31 March 2020 – 323); on 31 March 2021 and as at 31 March 2020 the average number of employees of the Company consisted of 316 employees.

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 separate financial statements, including the statements of financial position and statement of profit or loss, statements of comprehensive income, cash flow statement and the statements of changes in equity for the period ended 31 March 2021 have not been audited. The consolidated and separate financial statements for the period ended 31 December 2020 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 separate financial statements for the period ended 31 December 2020. PricewaterhouseCoopers UAB carried out an audit of Consolidated and separate Financial Statements for the period ended on 31 December 2020.

The Group's and separate condensed interim consolidated financial statements as of 31 March 2021 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 2020.

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.

3 Accounting estimates and assumptions

The preparation of financial statements in conformity with International Financial Reporting Standards requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses and disclosure of contingencies. Future events may occur which may cause the assumptions used in arriving at the estimates to change. The effect of any changes in estimates will be recorded in the financial statements, when determinable.

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

CONDENSED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

AS OF 31 MARCH 2021

3.1. COVID-19 impact on key accounting estimates, assumptions and estimation uncertainties

Below is a summary of key areas considered by the Company during the assessment of COVID-19 impact:

Due to the threat of spread of the coronavirus (COVID-19), the Group and the Company reviewed and implemented the following business continuity and preventive measures: appointed employees responsible for monitoring and reporting the situation to the Company's management; identified business units and employees undertaking the critical functions and administrating the main systems; planned technical and substitution measures in case of spread of the virus. The Company continuously reviews its emergency management plan and carries out preparatory works for ensuring continuity of the critical functions.

The quantities of transported gas increased during a 3-month period in 2021 compared to the same period in 2020, and accordingly, no decline in revenue was identified due to the impact of COVID-19. In the opinion of the Company, other factors (temperature fluctuations, market prices of natural gas) have a more significant impact on the demand for ordered services than the restrictions imposed as a result of a pandemic and quarantine situation.

The Group and the Company are assessing and updating on a continuous basis, the impact of factors related to COVID-19 pandemic on the Group's and the Company's performance and results of operations. The Company's management assessed the potential disruptions in cash flows, rendering of regulated services, availability of funding, also the impact on the demand for services, risk of infection of employees fulfilling critical functions and risk of late fulfilment of projects, based on the analysis of information available as at the date of issue of the condensed financial statements about the COVID-19-related threats in the future, and did not identify any material circumstances that might cast doubt upon the Company's ability to continue as a going concern.

Net book amount and useful life: property, plant and equipment and intangible assets

According to Company's management assessment no negative impact of COVID-19 has been identified on the results of operations and cash flows, the Company's management believes there are no indications of impairment of property, plant and equipment. Even an adverse change in the results of operations or cash flows in a short term would not cause negative impact on the cash flows and impairment of PP&E in a long-term perspective due to the regulatory mechanism in place.

Expected credit losses: financial assets

Monitoring of the Company's key customers has not resulted in identification of any material negative impact of COVID-19.

The Company projects no liquidity or credit risk issues. The Company's key customers are large companies, which are often regulated and/or included into the list of risk-free companies. Due to the specific nature of the Company's customers, the expected credit losses on amounts receivable are assessed individually with reference to the probability of default by customers. The Company assessed the current and expected economic condition of its key customers, did not identify any significant variances, and the settlements were performed in an ordinary manner. The expected credit losses remained at a similar level as in 2020. The Company plans to update its risk assessments regularly, upon changes in an economic environment, and takes measures to strengthen control over payments.

In the opinion of the Company, the outbreak of COVID will have no material impact on the Company's results of operations and cash flows in a short-term perspective. In a long-term perspective, doubtful debt expenses resulting from COVID-19 (if any) will be refunded to the Company (through a regulatory mechanism) and will be compensated during the later regulatory periods for determining the prices of regulated services.

3.2. Provisions for easement and special land use conditions (protected areas)

In the financial statements for the period ended 31 December 2020, a provision was established for non-current liabilities in relation to the commitment to register the special land use conditions (protected areas).

When assessing the amount of the commitment, the expected term of its fulfilment is taken into account. The provision for the commitment to register the protected areas was recognised at a present value of the expected

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

CONDENSED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

AS OF 31 MARCH 2021

costs of registration of the special land use conditions (the protected areas), discounted over the term of fulfilment of the commitment.

3.3. Recognition of new consumers connection revenue

Preparing the financial statements for the period ended 31 December 2020, the accounting policy to recognition of revenue from connection of new customers has been changed. Connection fees on connection of new consumers are recognised as revenue over such period that reflects the best estimate of customer relationship, as opposed to the previously applied revenue recognition approach, when connection fees on connection of new consumers were recognised as revenue immediately. In the opinion of the Company's management, revenue from connection fees is linked directly to rendering of transmission service by the Company in future periods when assets created by the Company will be utilised, because the connection to the grid on its own, without future transmission services, does not provide benefit to a customer.

Preparing the financial statements for the period ended 31 December 2020 for the changes in accounting policy to recognition of revenue from connection fees of new consumers, a retrospective restatement was made for certain line items. As a result of a retrospective restatement, the unamortised part of the connection fee and additional connection fee paid under the contracts that had not been completed as of 1 January 2019 were recognised as a contract liability as at 1 January 2019.

4 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 2021, the Group generated 75% (31 March 2020: 63%) of its total revenue from the system users in Lithuania, and 22% (31 March 2020: 33%) of revenue totaled from transportation of gas to adjacent transmission systems accounted for 3% (31 March 2020: 3%) 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 2021 is disclosed below:

	Transmission activity	Activities of the gas exchange	Total
Revenues	18,599	600	19,199
Income having eliminated the income of Group entities	18,599	591	19,190
Profit / loss from operating activities	9,014	390	9,404
Net financing income (costs)	(53)	(6)	(59)
Profit / loss before tax	8,961	384	9,345
Income tax	(291)	-	(291)
Net earnings (loss)	8,670	384	9,054
Depreciation / amortisation costs	(2,843)	(45)	(2,888)
Write-offs of non-current tangible assets	(26)	-	(26)

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

	Transfer activity	Activities of the gas exchange	Total
Revenues	13,147	471	13,618
Income having eliminated the income of Group entities	13,147	453	13,600
Profit / loss from operating activities	2,853	297	3,150
Net financing income (costs)	(79)	(1)	(80)
Profit / loss before tax	2,774	296	3,070
Income tax	493	(13)	480
Net earnings (loss)	3,267	283	3,550
Depreciation / amortisation costs	(2,694)	(47)	(2,741)
Write-offs of non-current tangible assets	-	-	-

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

CONDENSED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

AS OF 31 MARCH 2021

5 Non-current tangible and intangible assets

Non-current intangible assets	Group	Company
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
Residual value as of 31 December 2020	4,833	4,189
Additions	14	7
Amortisation	(256)	(217)
Netting of grants with the non-current assets	-	-
Residual value as of 31 March 2021	4,591	3,979

As at 31 December 2020, the Company recognised a provision of EUR 2,179 thousand and the related intangible assets for the establishment of the special land use conditions (protected areas). The provision was established under the amendments to the Regulations of the Real Property Cadastre, which were necessary for the establishment of a commitment to form a register of protected areas, as set out in the Lithuanian Law on Special Land Use Conditions, by the year 2023, and based on the Description of the procedure for preparation and approval of the protected areas, approved under the Lithuanian Energy Minister's Order No. 1-339 of 13 October 2020. Discounting of the provision was based on a discount rate of $0.62\%$ .

Non-current tangible assets	Group	Company
Residual value as of 31 December 2019	201,362	201,359
Additions	22,947	22,946
Depreciation	(2,402)	(2,402)
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
Residual value as of 31 December 2020	241,624	241,620
Additions	12,504	12,501
Depreciation	(2,521)	(2,520)
Write-offs	(56)	(56)
Netting of grants with the non-current assets	(5,303)	(5,303)
Residual value as of 31 March 2021	246,248	246,242

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

In 2020, the construction works of the gas interconnection between Poland and Lithuania were started. The value of the construction works, construction materials and other services acquired during the first quarter of 2021 for the implementation of the project amounted to EUR 11,530 thousand, and the amount of recognised grants receivable was EUR 5,141 thousand (the investments during the 2020 year amounted to EUR 76,977 thousand, the amount of recognised grants receivable was EUR 34,437 thousand. The project was reported within the category of construction work in progress.

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 2021, it stood at EUR 716 thousand (as of 31 March 2020 - EUR 661 thousand).

17

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

CONDENSED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

AS OF 31 MARCH 2021

6 Construction in progress

The largest objects of construction in progress of the Group and Company as of 31 March 2021 and 31 December 2020 were as follows:

Items	At 31 March 2021	At 31 December 2020
Implementation of gas interconnection Poland-Lithuania project in the territory of Lithuania	95,329	83,799
Installation of pig launchers/receivers	3,942	4,446
Implementation of operative technological control of gas transmission system	2,813	2,776
Construction of the main gas pipeline Vilnius-Kaunas and interconnection Kaunas-Šakiai	551	551
Other	2,166	1,691
Grants recognised (offsetting against non-current assets)	(46,004)	(40,910)
Less: impairment of construction work in progress	(597)	(580)
	58,200	51,773

• 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.

7 The right-of-use assets and lease liabilities

As described below, the Group and the Company have taken on lease office premises, motor vehicles, and land. Lease periods for premises, motor vehicles and land are 8-9 years, 4 years, and 99 years, respectively. The Group and the Company assessed the probability of exercising the lease extension option when recognising right-of-use assets and lease liabilities, and when determining the lease periods. In November 2020, the Company completed the tendering procedures for procurement of lease of new office premises and announced the tenderer who was awarded the contract. The lease of new office premises is expected to start in October 2021. Based on the supported assumptions that the lease extension option will not be exercised, the Company revised the lease period of premises and re-measured the lease liabilities.

	Group
	Buildings	Land	Motor vehicles	Total
Initial value of recognized assets at 31 December 2019	723	1,265	13	2,001
Acquisitions	4	-	1,108	1,112
Write-offs	-	-	-	-
Amortization	(38)	(3)	(59)	(100)
Residual value at 31 March 2020	689	1,262	1,062	3,013
Residual value of recognized assets at 31 December 2020	221	1,252	862	2,335
Acquisitions	-	-	-	-
Write-offs	-	-	-	-
Amortization	(38)	(3)	(71)	(112)
Residual value at 31 March 2021	183	1,249	791	2,223
Initial value	521	1,278	1,136	2,935
Accumulated depreciation	(338)	(29)	(345)	(712)
Residual value at 31 March 2021	183	1,249	791	2,223

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

CONDENSED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

AS OF 31 MARCH 2021

	Company
	Buildings	Land	Motor vehicles	Total
Initial value of recognized assets at 31 December 2019	585	1,265	-	1,850
Acquisitions	-	-	1,108	1,108
Write-offs	-	-	-	-
Amortization	(33)	(3)	(58)	(94)
Residual value at 31 March 2020	552	1,262	1,050	2,864
Residual value of recognized assets at 31 December 2020	99	1,252	853	2,204
Acquisitions	-	-	-	-
Write-offs	-	-	-	-
Amortization	(33)	(3)	(70)	(106)
Residual value at 31 March 2021	66	1,249	783	2,098
Initial value	366	1,278	1,119	2,763
Accumulated depreciation	(300)	(29)	(336)	(665)
Residual value at 31 March 2021	66	1,249	783	2,098

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.

	Group
	At 31 March 2021	At 31 March 2020
Carrying amount of lease liabilities at the beginning of the period	2,363	2,009
Recognition of lease liabilities under IFRS 16	-	-
Concluded lease contracts	-	1,112
Termination of leases (write-offs of debts and accrued interest)	-	-
Interest expenses	6	6
Lease payments (Principal and Interest)	(116)	(89)
Carrying amount at 31 March	2,253	3,038
Non-current lease liabilities	1,876	2,603
Current lease liabilities	377	435
	Company
---	---	---
	At 31 March 2021	At 31 March 2020
Carrying amount of lease liabilities at the beginning of the period	2,230	2,009
Recognition of lease liabilities under IFRS 16	-	-
Concluded lease contracts	-	1,108
Termination of leases (write-offs of debts and accrued interest)	-	-
Interest expenses	6	6
Lease payments (Principal and Interest)	(110)	(83)
Carrying amount at 31 March	2,126	2,888
Non-current lease liabilities	1,772	2,476
Current lease liabilities	354	412

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

CONDENSED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

AS OF 31 MARCH 2021

	Group
Lease liabilities	At 31 March 2021	At 31 December 2020
Current year	377	410
Repayment terms of non-current liabilities:	1,876	1,953
Between 1 and 2 years	311	310
From 2 to 3 years	268	312
From 3 to 5 years	58	84
After 5 years	1,239	1,247
	Company
Lease liabilities	At 31 March 2021	At 31 December 2020
Current year	354	387
Repayment terms of non-current liabilities:	1,772	1,843
Between 1 and 2 years	288	287
From 2 to 3 years	245	289
From 3 to 5 years	20	46
After 5 years	1,219	1,221

Interest on lease liabilities reflected in the Group's finance costs amounted to EUR 6 thousand as at 31 March 2021 (31 March 2020: EUR 6 thousand).

The Group and the Company had no leases with variable payments not included in the value of lease liabilities. In the first quarter 2021, the Group's lease payments amounted to EUR 104 thousand (in the first quarter 2020: EUR 89 thousand).

8 Trade receivables

	Group		Company
	At 31 March 2021	At 31 December 2020	At 31 March 2021	At 31 December 2020
Non-current trade receivables
Other trade receivables	-	-	-	-
Current trade receivables
Gas transmission services receivables	5,802	5,745	5,811	5,799
Other trade receivables	2,349	2,195	1	122
Less: allowance for the decrease in value of trade receivables	(70)	(70)	(70)	(70)
	8,081	7,870	5,742	5,851

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.

20

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

CONDENSED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

AS OF 31 MARCH 2021

9 Other receivables

	Group		Company
	At 31 March 2021	At 31 December 2020	At 31 March 2021	At 31 December 2020
LNG terminal funds receivable (administered by the Company)	11,582	12,834	11,582	12,834
Grants receivable	30,490	25,628	30,490	25,628
Receivables accrued for natural gas transportation	169	965	169	965
Other receivables	306	80	81	78
	42,547	39,507	42,322	39,505

The LNG terminal funds receivable as at 31 March 2021 include the overdue amount of EUR 5,400 thousand (as at 31 December 2020 - EUR 5,253 thousand) of which total the overdue amount of AB "Achema's" was EUR 5,316 thousand, the overdue amount of UAB "Geros dujos" was EUR 19 thousand, the overdue amount of UAB "Geoterma" was EUR 65 thousand. For more information about AB "Achema" see note 18 Commitments and Contingencies.

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

Contract assets include as follows:

	Company
	At 31 March 2021	At 31 December 2020
Current contract assets related to transportation of natural gas	169	965
Total contract assets	169	965

10 Other financial assets

The Group's other financial assets as at 31 March 2021 consisted of monetary funds collected from extra charge on natural gas transmission price related to natural gas supply security, referred to as the LNG terminal funds, and the funds transferred by the exchange participants. Those funds are collected from the system users, kept on separate bank accounts for LNG terminal funds in compliance with the legal requirements, and are intended for payment to the recipients of the LNG terminal funds: the LNG terminal operator (Klaipėdos Nafta AB), the designated supplier (Ignitis UAB), and the Company to cover the administration costs of the LNG terminal funds. Based on Resolution No. O3E-1235 of 30 November 2020, an extra charge related to natural gas supply security was set to be effective during the period from 1 January 2021.

The advance payment funds received by gas exchange members as at 31 March 2021 are accounted for EUR 11,406 thousand (as at 31 December 2020 – EUR 8,670 thousand).

	Group		Company
	At 31 March 2021	At 31 December 2020	At 31 March 2021	At 31 December 2020
Funds of the LNG terminal	88	3	88	3
Funds transferred by the gas exchange members	11,406	8,670	-	-
	11,494	8,673	88	3

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

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

CONDENSED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

AS OF 31 MARCH 2021

11 Loans

	Group		Company
	At 31 March 2021	At 31 December 2020	At 31 March 2021	At 31 December 2020
Long-term loans
Loans from credit institutions of Lithuania	22,000	22,000	22,000	22,000
Loans from international financial institutions	78,478	79,565	78,478	79,565
Short-term loans
Loans from credit institutions of Lithuania	-	-	-	-
Short-term loan (EPSO-G UAB)	11,186	7,852	11,186	7,852
Current portion of long-term loans	10,174	10,174	10,174	10,174
	121,838	119,591	121,838	119,591

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, in which a maximum borrowing limit of EUR 15,000 thousand from EPSO-G UAB has been set. On 31 March 2020 an additional agreement was signed, which increased the maximum borrowing limit to 35,000 thousand euros and on 29 June 2020 according another supplementary agreement - to 40,000 thousand euros. As at 31 March 2021 the Company's borrowings amounted to EUR 11,186 thousand (as at 31 December 2020 – EUR 7,852 thousand).

On 30 June 2020 AB Amber Grid signed up to 65 million euros long-term financing agreement with the European Investment Bank (EIB) for the construction of a gas pipeline connection between Poland and Lithuania in the territory of the Republic of Lithuania. On 31 March 2021 used part of loan amounted to 60,000 thousand.

As at 31 March 2021, the weighted average annual interest rate on borrowings of the Company and the Group was 0.38% (31 December 2020: 0.39%).

12 Contract liabilities

Contract liabilities under the new customer connection contracts

The funds from connection of new consumers to the gas transmission system were recognised as contract liabilities in amount of EUR 1,364 thousand as at 31 March 2021 (31 December 2020: EUR 1,371 thousand). The contract liabilities to be recognised as revenue within one year are reported as current contract liabilities.

	Company
	Non-current contract liabilities	Current contract liabilities	Total
Opening balance at 31 December 2019	1,371	34	1,405
Received/receivable	-	-	-
Recognised as revenue	-	(34)	(34)
Reclassification	(34)	34	-
Closing balance as at 31 December 2020	1,337	34	1,371
Received/receivable	-	-	-
Recognised as revenue	-	(7)	(7)
Reclassification	(7)	7	-
Closing balance as at 31 March 2021	1,330	34	1,364

Contract liabilities included as follows:

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

CONDENSED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

AS OF 31 MARCH 2021

	Company
	At 31 March 2021	At 31 December 2020
Non-current portion of contract liabilities	1,330	1,337
Total non-current contract liabilities	1,330	1,337
Current portion of contract liabilities	34	34
Advance amounts received on transmission services	32	34
Total current contract liabilities	66	68
Total contract liabilities	1,396	1,405

13 Income tax

In 2021, the standard corporate income tax rate applicable to the companies of the Republic of Lithuania was 15 per cent (in 2020: 15 per cent). The income tax expenses for the period comprise the current income tax and the deferred income tax.

On investments in new technologies, as at 31 March 2021, the Company had calculated a corporate income tax relief amounting to EUR 1,334 thousand (as at 31 March 2020: EUR 912 thousand).

14 Trade payables

	Group		Company
	At 31 March 2021	At 31 December 2020	At 31 March 2021	At 31 December 2020
Payables to suppliers under investment programme (reconstruction and modernisation)	4,197	4,810	4,197	4,810
Payables to suppliers of goods and providers of services	821	2,106	727	2,007
Payables to providers of repairs services under non-current assets repairs programme	61	265	61	265
Payables to suppliers of natural gas	8,691	3,248	810	1,069
	13,770	10,429	5,795	8,151

As at 31 March 2021, the trade payables were interest-free and the payment terms of the largest share of them ranged from 30 to 60 days.

15 Received advanced payments and contract liabilities

	Group		Company
	At 31 March 2021	At 31 December 2020	At 31 March 2021	At 31 December 2020
Current contract liabilities	66	68	66	68
Grants received in advance	210	236	210	236
Advance amounts received from gas exchange participants	5,934	8,246	-	-
Other advance amounts received	21	8	21	8
Total advance amounts received	6,231	8,558	297	312

Prepayments received by the Group on 31 March 2021 was in amount of EUR 6,231 thousand (as of 31 December 2020 EUR - 8,558 thousand). Advance payments received by the Company are the payments received from the EU for investment projects, contract liabilities and gas exchange members.

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

CONDENSED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

AS OF 31 MARCH 2021

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.

16 Other payables and current liabilities

	Group		Company
	At 31 March 2021	At 31 December 2020	At 31 March 2021	At 31 December 2020
Payable LNG terminal funds administrated by the Company	10,830	10,670	10,830	10,670
Accrued LNG terminal funds subject to administration by the Company*	846	2,175	846	2,175
Real Estate Tax payable	-	453	-	453
Value Added Tax (VAT) payable	399	582	399	278
Other payables	463	465	373	405
	12,538	14,345	12,448	13,981

*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 "Klaipėdos 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.

17 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
	For the period of three months ended 31 March 2021	For the period of three months ended 31 March 2020
Net profit (loss) attributable to the shareholders (EUR thousand)	9,054	3,550
Weighted average number of shares (thousand)	178,383	178,383
Basic and diluted earnings (loss) per share (EUR)	0,05	0,02

18 Dividends

According to the decision of the Company's ordinary general meeting of the shareholders no dividends were approved to distribute from the distributable profit.

At the general meeting of shareholders in 2019 and 2020 decisions for the profit distribution were adopted in accordance with the provisions of the dividend policy of the EPSO-G UAB group companies. Due to the increase in the need of the funds for investments, the distributable profit was left in the Company, taking into account the fact that the Company is implementing a large-scale strategic gas transmission connection project between Lithuania and Poland GIPL.

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

CONDENSED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

AS OF 31 MARCH 2021

19 Restatement of comparative figures

Effects of change in accounting policy to recognition of revenue from connection of new consumers

In view of the change in accounting policy to recognition of revenue from connection of new consumers, which was fulfilled preparing the financial statements for the period ended 31 December 2020, the Group applied this amendment to these interim condensed financial statements for the three-month period ended 31 March 2021, restating the statement of profit or loss, statement of comprehensive income, statement of changes in equity and cash flow statement for three-month period ending 31 March 2020, so that comparative information for the three-month period would be accurate.

Effects of restatement on the Group's financial indicators for the three months period ended 31 March 2021 is presented in the table below (effects on the Company's comparative figures match the effects on the Group's comparative figures):

| CONSOLIDATED STATEMENT OF PROFIT OR LOSS
EUR '000 | | For the period of three months ended 31 March 2020 (before restatement) | Restatement effects | For the period of three months ended 31 March 2020 (after restatement) |
| --- | --- | --- | --- | --- |
| I. | Revenue | 13,592 | 8 | 13,600 |
| III. | Operating profit | 3,142 | 8 | 3,150 |
| V. | Profit before tax | 3,062 | 8 | 3,070 |
| VI. | Income tax | 481 | (1) | 480 |
| VI.1 | Current year income tax | (13) | - | (13) |
| VI.2. | Deferred income tax | 494 | (1) | 493 |
| VII. | Net profit (loss) | 3.543 | 7 | 3.550 |
| CONSOLIDATED STATEMENT OF CASH FLOWS
EUR '000 | | Group period ended 31 March 2020 (before restatement) | Restatement effects | Group Period ended 31 March 2020 (after restatement) |
| --- | --- | --- | --- | --- |
| I.1. | Net profit (loss) | 3,543 | 7 | 3.550 |
| I.5. | Income tax expenses (benefit) | (481) | 1 | 480 |
| I.14 | Other amounts payable and current liabilities | (5,859) | (8) | (5,867) |

20 Commitments and contingencies

Litigations

Currently, the Company has initiated two civil cases regarding the award of extra charge on the natural gas transmission price related to natural gas supply security (the LNG terminal funds) from Achema AB. The Company acts solely as an administrator of the LNG terminal funds and transfers the LNG terminal funds to their recipients only after collecting them from the buyers, and accordingly, the Company does not incur credit risk arising from the disputed amounts.

In addition, litigation procedure is pending regarding the legitimacy of the decisions of the Company's Procurement Commission passed at the time of procurement of contract works for the gas interconnection between Poland and Lithuania (GIPL) project (procurement No. 381642). On 21 May 2020, the Lithuanian Court of Appeal passed a ruling, by which the decision of 28 February 2020 of Vilnius District Court was left unchanged (the outcome of the procurement was left unchanged as well). The claimant has filed an appeal in cassation, which has been accepted and its hearing was held on 27 January 2021 at the Lithuanian Supreme Court. On 3 March 2021, the Lithuanian Supreme Court passed a ruling to repeal the decision of Vilnius District Court of 28 February 2020 and the ruling of the panel of judges from the Division of Civil Cases of the Lithuanian Court of Appeal of 21 May 2020, and to remit the case back to the court of first instance. The Supreme Court of Lithuania in a final and unappealable order ruled that the lower courts had properly assessed the Company's

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

CONDENSED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

AS OF 31 MARCH 2021

arguments regarding the re-evaluation of tenders, national security assessment and calculation of economic efficiency score, after which the assessment of the applicant's tender was reduced. The case was remitted to the court of first instance only for re-examination to the extent of the validity of the claim submitted by the Applicant and not examined. The case is currently pending in the Court of First Instance, a decision has not been made yet.

21 Related party transactions

As at 31 March 2021 and 31 December 2020, 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 2021 and 31 December 2020 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 2021 and 31 December 2020. Transactions with related parties are disclosed for the three-month period ended 31 March 2021 and 31 March 2020:

	Group
	Acquisitions	Sales	Accounts receivable	Loans granted	Accounts payable	Costs of financial operations
EPSO - G UAB	29	-	-	11,186	32	17
TETAS UAB	1	-	-	-	1	-
Ignitis Gamyba UAB	19	14,141^{2)}	1,988^{2)}	-	1,947	-
Energijos Skirstymo Operatorius AB	54	143	49	-	-	-
Ignitis UAB	22,375^{2)}	9,582^{2)}	2,509^{2)}	-	5,953^{2)}	-
Transporto Valdymas UAB	100	-	-	-	43	-
Klaipėdos Nafta AB	7,302^{2)}	-	-	-	6,523^{2)}	-
State enterprise Ignalina Nuclear Power Plant	-			-
Geoterma UAB	-	44	22		-	-
Other state-owned enterprises	8	-	-	-	4	-
	29,888	23,910	4,678	11,186	14,503	17

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

CONDENSED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

AS OF 31 MARCH 2021

	Acquisitions	Sales	Accounts receivable	Loans granted	Accounts payable	Costs of financial operations
EPSO - G UAB	39	-	-	15,305	40	9
TETAS UAB	-	-	-	-	-	-
Ignitis Gamyba UAB	-	10,783^{2)}	1,743^{2)}	-	4,358	-
Energijos Skirstymo Operatorius AB	58	117	47	-	12	-
Ignitis UAB	21,194^{2)}	11,319^{2)}	2,973^{2)}	-	3,897^{2)}	-
Transporto Valdymas UAB	58	-	-	-	37	-
Klaipėdos Nafta AB	9,625^{2)}	-	-	-	6,986^{2)}	-
State enterprise Ignalina Nuclear	-			-
Power Plant		41	20		-	-
Geoterma UAB	-	-	110	-	-	-
Other state-owned enterprises	14	-		-	7	-
	30,988	22,260	4,893	15,305	15,337	9
	Acquisitions	Sales	Accounts receivable	Loans granted	Accounts payable	Costs of financial operations
---	---	---	---	---	---	---
GET Baltic UAB	811^{1)}	80^{1)}	9^{1)}		236^{1)}	-
EPSO - G UAB	29	-	-	11,186	32	17
TETAS UAB	1	-	-	-	1	-
Ignitis Gamyba UAB	8	5,096^{2)}	1,981^{2)}	-	-	-
Energijos Skirstymo Operatorius AB	54	143	49	-	-	-
Ignitis UAB	10,701^{2)}	8,635^{2)}	2,508^{2)}	-	4,795^{2)}	-
Transporto Valdymas UAB	100	-	-	-	43	-
Klaipėdos Nafta AB	7,302^{2)}	-	-	-	6,523^{2)}	-
State enterprise Ignalina Nuclear	-			-
Power Plant		44	22		-	-
Geoterma UAB	-	-	110	-	-	-
Other state-owned enterprises	8	-	-	-	4	-
	19,014	13,998	4,679	11,186	11,634	17
	Acquisitions	Sales	Accounts receivable	Loans granted	Accounts payable	Costs of financial operations
---	---	---	---	---	---	---
GET Baltic UAB	1,915^{1)}	11^{1)}	3^{1)}		360^{1)}	-
EPSO - G UAB	39	-	-	15,125	40	8
TETAS UAB	-	-	-	-	-	-
Ignitis Gamyba UAB	-	4,267^{2)}	1,743^{2)}	-	-	-
Energijos Skirstymo Operatorius AB	58	117	47	-	12	-
Ignitis UAB	7,824^{2)}	7,885^{2)}	2,954^{2)}	-	3,387^{2)}	-
Transporto Valdymas UAB	58	-	-	-	37	-
Klaipėdos Nafta AB	9,625^{2)}	-	-	-	6,986^{2)}	-
State enterprise Ignalina Nuclear	-	41	20	-	-	-
Power Plant	-	-	110	-	-	-
Geoterma UAB	-	-	110	-	-	-
Other state-owned enterprises	13
	19,532	12,321	4,877	15,125	10,828	8

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.

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

CONDENSED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

AS OF 31 MARCH 2021

There have been none guaranties received to the revenue obtained and payable by the related parties. On 31 March 2021 the Company and Group did not form and accounted the depreciation of value to the revenue received from the related parties.

Benefits to the Management

	Group		Company
	At 31 March 2021	At 31 March 2020	At 31 March 2021	At 31 March 2020
Earnings-related benefits	132	106	115	89
Benefits for Board Members	15	6	15	6
	147	112	130	95

The management of the Group and the Company is deemed to include the CEO, the Technical Director, the Legal and Administration Director, the Commerce Director, the Organisational Progress Director, and the Finance Director. No loans, guarantees were issued nor were any assets transferred to the management of the Group and the Company.

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.