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City Service SE Interim / Quarterly Report 2012
5564_rns_2013-02-28_c61a2088-9bb0-4ac7-aa74-38463ae068f7.pdf
Interim / Quarterly Report
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February 2013
CityService
City Service AB
Consolidated and parent company's interim financial statements for the twelve months of 2012 (unaudited)
Consolidated and parent company's interim financial statements for the twelve months of 2012 (unaudited), thousand Litas
Page 2
Statements of financial position
| Group | Company | |||
|---|---|---|---|---|
| As of 31 December 2012 | As of 31 December 2011 | As of 31 December 2012 | As of 31 December 2011 | |
| Assets | ||||
| Non-current assets | ||||
| Goodwill | 44,760 | 69,072 | - | - |
| Other intangible assets | 76,973 | 78,692 | 3 | 1,186 |
| Property, plant and equipment | 87,985 | 52,751 | 419 | 4,044 |
| Investment property | 370 | 382 | - | - |
| Investments into subsidiaries | - | - | 156,911 | 127,913 |
| Investments into associates | 588 | 578 | - | - |
| Non-current financial assets receivables and prepayments | 2,218 | 10,960 | 595 | 6,733 |
| Deferred income tax asset | 10,026 | 9,243 | 294 | 736 |
| Total non-current assets | 222,920 | 221,678 | 158,222 | 140,612 |
| Current assets | ||||
| Inventories | 5,537 | 4,040 | 1 | 701 |
| Prepayments | 12,821 | 8,911 | 174 | 252 |
| Trade receivables | 120,598 | 76,927 | 29,158 | 20,558 |
| Receivables from related parties (including loans granted) | 950 | 1,309 | 55,084 | 35,284 |
| Other receivables and current assets | 9,891 | 7,116 | 2,318 | 4,196 |
| Cash and cash equivalents | 31,513 | 25,050 | 129 | 216 |
| Total current assets | 181,310 | 123,353 | 86,864 | 61,207 |
| Total assets | 404,230 | 345,031 | 245,086 | 201,819 |
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the twelve months of 2012 (unaudited), thousand Litas
Page 3
Statements of financial position (cont'd)
| Group | Company | |||
|---|---|---|---|---|
| As of 31 December 2012 | As of 31 December 2011 | As of 31 December 2012 | As of 31 December 2011 | |
| Equity and liabilities | ||||
| Equity attributable to equity holders of the Company | ||||
| Share capital | 31,610 | 31,610 | 31,610 | 31,610 |
| Reserves and share premium | 83,002 | 83,002 | 82,991 | 82,991 |
| Foreign currency translation | (2,179) | (1,824) | - | - |
| Retained earnings (deficit) | 70,524 | 63,451 | 27,772 | 33,087 |
| 182,957 | 176,239 | 142,373 | 147,688 | |
| Non-controlling interests | 1,968 | 2,231 | - | - |
| Total equity | 184,925 | 178,470 | 142,373 | 147,688 |
| Liabilities | ||||
| Non-current liabilities | ||||
| Non-current borrowings | 29,716 | 18,497 | 29,716 | 18,417 |
| Financial lease obligations | 6,255 | 6,207 | 253 | 1,596 |
| Deferred income tax liabilities | 13,301 | 15,306 | - | - |
| Non-current payables | 1,612 | 6,651 | 290 | 503 |
| Total non-current liabilities | 50,884 | 46,661 | 30,259 | 20,516 |
| Current liabilities | ||||
| Current portion of non-current borrowings | 9,498 | 8,103 | 9,418 | 7,116 |
| Current portion of financial lease obligations | 2,749 | 3,859 | 62 | 569 |
| Short term loans | 18,914 | 856 | 34,950 | 3,148 |
| Trade payables | 75,807 | 59,035 | 13,189 | 4,334 |
| Payables to related parties (including loans received) | 14,655 | 13,212 | 11,928 | 13,559 |
| Advances received | 18,348 | 14,513 | 1,691 | 1,490 |
| Other current liabilities | 28,450 | 20,322 | 1,217 | 3,399 |
| Total current liabilities | 168,421 | 119,900 | 72,455 | 33,615 |
| Total equity and liabilities | 404,230 | 345,031 | 245,087 | 201,819 |
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the twelve months of 2012 (unaudited), thousand Litas
Page 4
Statements of comprehensive income (for the period 1 January – 31 December)
| Group | Company | |||
|---|---|---|---|---|
| 2012 | 2011 | 2012 | 2011 | |
| Sales | 536,462 | 547,843 | 53,068 | 115,556 |
| Cost of sales | (423,587) | (434,595) | (42,352) | (84,447) |
| Gross profit (loss) | 112,875 | 113,248 | 10,716 | 31,109 |
| General and administrative expenses | (86,244) | (75,883) | (10,732) | (19,879) |
| Other operating income (expenses) | 1,979 | (2,995) | 1,829 | 86 |
| Profit (loss) from operations | 28,610 | 34,370 | 1,813 | 11,316 |
| Income from financial and investment activities, net | (8,492) | (430) | 617 | 2,221 |
| Profit (loss) before tax | 20,118 | 33,940 | 2,430 | 13,537 |
| Income tax | (4,787) | (4,453) | (475) | (1,434) |
| Net profit (loss) | 15,331 | 29,487 | 1,955 | 12,103 |
| Other comprehensive income | ||||
| Exchange differences on translation of foreign operations | (355) | (112) | - | - |
| Total comprehensive income for the year, net of tax | 14,976 | 29,375 | 1,955 | 12,103 |
| Attributable to: | ||||
| The shareholders of the Company | 14,343 | 28,725 | 1,955 | 12,103 |
| Non-controlling interests | 988 | 762 | - | - |
| 15,331 | 29,487 | 1,955 | 12,103 | |
| Total comprehensive income attributable to: | ||||
| The shareholders of the Company | 13,988 | 28,613 | 1,955 | 12,103 |
| Non-controlling interests | 988 | 762 | - | - |
| 14,976 | 29,375 | 1,955 | 12,103 | |
| Basic and diluted earnings per share (LTL) | 0.45 | 0.91 |
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the twelve months of 2012 (unaudited), thousand Litas
Page 5
Statements of comprehensive income (for the period 1 October – 31 December)
| Group | Company | |||
|---|---|---|---|---|
| 2012 Q4 | 2011 Q4 | 2012 Q4 | 2011 Q4 | |
| Sales | 147,448 | 162,617 | 15,767 | 35,833 |
| Cost of sales | (119,754) | (129,686) | (12,830) | (25,404) |
| Gross profit (loss) | 27,694 | 32,931 | 2,937 | 10,429 |
| General and administrative expenses | (23,691) | (20,822) | (2,917) | (5,721) |
| Other operating income (expenses) | 2,717 | (1,113) | 69 | 17 |
| Profit (loss) from operations | 6,720 | 10,996 | 89 | 4,725 |
| Income from financial and investment activities, net | (766) | 294 | 1,046 | 50 |
| Profit (loss) before tax | 5,954 | 11,290 | 1,135 | 4,775 |
| Income tax | (2,539) | 805 | (24) | (1,012) |
| Net profit (loss) | 3,415 | 12,095 | 1,111 | 3,763 |
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the twelve months of 2012 (unaudited), thousand Litas
Page 6
Statements of changes in equity
| Group | Share capital | Share premium | Legal reserve | Foreign currency translation | Other reserves | Retained earnings (deficit) | Total | Non-controlling interest | Total |
|---|---|---|---|---|---|---|---|---|---|
| Balance as of 1 January 2011 | 31,610 | 73,830 | 2,455 | (1,712) | 6,000 | 43,346 | 155,529 | 1,396 | 156,925 |
| Net profit for the year | - | - | - | - | - | 28,725 | 28,725 | 762 | 29,487 |
| Income (expenses) for the year recognised directly in equity | - | - | - | (112) | - | - | (112) | - | (112) |
| Total income (expense) for the year | - | - | - | (112) | - | 28,725 | 28,613 | 762 | 29,375 |
| Transfer to legal reserve | - | - | 717 | - | - | (717) | - | - | - |
| Acquisition of subsidiary | - | - | - | - | - | - | - | 73 | 73 |
| Dividends declared | - | - | - | - | - | (7,903) | (7,903) | - | (7,903) |
| Balance as of 1 January 2012 | 31,610 | 73,830 | 3,172 | (1,824) | 6,000 | 63,451 | 176,239 | 2,231 | 178,470 |
| Net profit for the year | - | - | - | - | - | 14,343 | 14,343 | 988 | 15,331 |
| Income (expenses) for the year recognised directly in equity | - | - | - | (355) | - | - | (355) | - | (355) |
| Total income (expense) for the year | - | - | - | (355) | - | 14,343 | 13,988 | 988 | 14,976 |
| Disposal of subsidiary | - | - | - | - | - | - | - | (1,251) | (1,251) |
| Dividends declared | - | - | - | - | - | (7,270) | (7,270) | - | (7,270) |
| Balance as of 31 December 2012 | 31,610 | 73,830 | 3,172 | (2,179) | 6,000 | 70,524 | 182,957 | 1,968 | 184,925 |
| Company | Share capital | Share premium | Legal reserve | Other reserves | Retained earnings (deficit) | Total | |||
| --- | --- | --- | --- | --- | --- | --- | |||
| Balance as of 1 January 2011 | 31,610 | 73,830 | 2,444 | 6,000 | 29,604 | 143,488 | |||
| Net profit for the year | - | - | - | - | 12,103 | 12,103 | |||
| Transfer to legal reserve | - | - | 717 | - | (717) | - | |||
| Dividends declared | - | - | - | - | (7,903) | (7,903) | |||
| Balance as of 1 January 2012 | 31,610 | 73,830 | 3,161 | 6,000 | 33,087 | 147,688 | |||
| Net profit for the year | - | - | - | - | 1,955 | 1,955 | |||
| Dividends declared | - | - | - | - | (7,270) | (7,270) | |||
| Balance as of 31 December 2012 | 31,610 | 73,830 | 3,161 | 6,000 | 27,772 | 142,373 |
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the twelve months of 2012 (unaudited), thousand Litas
Page 7
Statements of cash flows
| Group | Company | |||
|---|---|---|---|---|
| 2012 | 2011 | 2012 | 2011 | |
| Cash flows from (to) operating activities | ||||
| Net profit | 15,331 | 29,487 | 1,955 | 12.103 |
| Adjustments for non-cash items: | ||||
| Income tax expenses | 4,787 | 4,453 | 475 | 1.434 |
| Depreciation and amortization | 13,159 | 12,699 | 265 | 1.529 |
| Impairment and discounting of accounts receivable | 12,063 | 5,946 | (841) | 641 |
| Gain from bargain purchase | (23,114) | (1,156) | - | - |
| Loss (gain) on disposal of property, plant and equipment | (330) | (636) | (13) | (3) |
| Dividend (income) | - | - | (1,503) | (2.957) |
| Loss from sale of investments | 7,594 | - | - | - |
| Impairment of goodwill | 19,500 | - | - | - |
| Impairment of investments into subsidiaries | - | - | - | 789 |
| Interest (income) | (331) | (717) | (936) | (1,757) |
| Interest expenses | 1,476 | 1,724 | 1,780 | 1,664 |
| Reversal of discounting effect on long-term trade payables | 686 | - | - | - |
| Other financial activity result, net | (817) | - | - | - |
| Share of net profit of associate | (10) | (15) | - | - |
| 49,994 | 51,785 | 1,182 | 13,443 | |
| Changes in working capital: | ||||
| (Increase) decrease in inventories | (107) | (506) | 700 | (172) |
| (Increase) decrease in receivables and other current assets | (51,171) | 25,269 | (1,245) | 24,971 |
| (Increase) decrease in prepayments | (5,386) | 2,596 | 78 | (9) |
| Increase (decrease) in trade payables and payables to related parties | 21,683 | (23,206) | 7,011 | (4,759) |
| Income tax (paid) | (6,061) | (4,318) | 442 | (2,650) |
| Increase (decrease) in advances received and other current liabilities | 9,274 | (177) | (4,090) | (4,953) |
| Net cash flows from (to) operating activities | 18,226 | 51,443 | 4,078 | 25,871 |
| Cash flows (to) investing activities | ||||
| (Acquisition) of non-current assets (except investments) | (4,197) | (7,951) | (197) | (843) |
| Proceeds from sale of non-current assets | 1,370 | 636 | 4 | 37 |
| (Acquisition) of investments in subsidiaries and associates (net of cash acquired in the Group) | (25,590) | (7,453) | (21) | (707) |
| Disposal of investments in subsidiaries | 4,187 | - | - | - |
| Interest received | 55 | 55 | 78 | 76 |
| Prepayment for investments | (4,237) | - | - | - |
| Dividends received | - | - | 1,503 | 2,957 |
| Loans granted | - | (249) | (42,144) | (3,656) |
| Net cash flows from (to) investing activities | (28,412) | (14,962) | (40,777) | (2,136) |
| Cash flows (to) from financing activities | ||||
| Dividends (paid) | (7,270) | (7,903) | (7,270) | (7,903) |
| Proceeds from loans | 38,489 | 4,861 | 54,125 | 4,861 |
| (Repayment) of financial lease liabilities | (5,148) | (5,343) | (1,850) | (736) |
| Loans (repaid) | (8,103) | (18,817) | (7,116) | (18,386) |
| Interest (paid) | (1,319) | (1,664) | (1,277) | (1,651) |
| Net cash flows from (to) financial activities | 16,649 | (28,866) | 36,612 | (23,815) |
| Net increase (decrease) increase in cash and cash equivalents | 6,463 | 7,615 | (87) | (80) |
| Cash and cash equivalents at the beginning of the period | 25,050 | 17,435 | 216 | 296 |
| Cash and cash equivalents at the end of the period | 31,513 | 25,050 | 129 | 216 |
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the twelve months of 2012 (unaudited), thousand Litas
Page 8
Notes to the financial statements
1. General Information
AB City Service (hereinafter – “the Company”) is a public limited liability company registered in the Republic of Lithuania on 28 January 1997.
The Company controls the largest group of integrated utility service companies in Central and Eastern Europe. The City Service group is the market leader in facility management and integrated utility services in the Baltic States. It provides services in the following cities and regions: in the municipalities of Vilnius, Kaunas, Klaipėda, Šiauliai, Alytus, Utena, Marijampolė, Palanga, Trakai, Širvintos, Radviliškis, Neringa, Varėna, Kazlų Rūda, Vilkaviškis, Šilutė and Pagėgiai in Lithuania; in Poland; in Riga and separate regions in Latvia; in St. Petersburg and Stavropol in the Russian Federation.
1.1. Activities
The Company provides facility management; maintenance and repair of engineering systems; management and renovation of energy resources; technical and energy audit of buildings; waste management and eco-business; maintenance of elevators; maintenance and cleaning of territories.
The most important buildings segment administered by the City Service group: are residential apartment buildings; commercial buildings; public buildings; industrial buildings. The total area of buildings under the management of the Group is 24.7 million sq. m. at present.
1.2. Share Capital of the Company
The share capital of the Company is LTL 31,610 thousand as of 31 December 2012. It is divided into 31,610 thousand ordinary shares with the nominal value of LTL 1 each. All shares of the Company are paid up.
The Company does not have any other classes of shares than ordinary shares mentioned above, there are no any restrictions of share rights or special control rights for the shareholders settled in the Articles of Association of the Company. No shares of the Company are held by itself or its subsidiaries. No convertible securities, exchangeable securities or securities with warrants are outstanding; likewise, there are no outstanding acquisition rights or undertakings to increase share capital.
On 31 December 2012 all 31,610 thousand ordinary shares of the Company are included into the Official List of NASDAQ OMX Vilnius Stock Exchange (ISIN Code of the shares is LT0000127375). Trading Code of the shares on NASDAQ OMX Vilnius Stock Exchange is CTS1L.
1.3. Shareholders of the Company
On 31 December 2012 the total number of shareholders of the Company was 1954.
Company's shares distribution among shareholders as of 31 December 2012 was the following:
| Number of shares held | Owned percentage of the share capital and votes, % | |
|---|---|---|
| ICOR UAB | 20,205,595 | 63.92% |
| East Capital Asset Management, AB | 3,167,722 | 10.02% |
| Genesis Asset Managers, LLP | 1,644,183 | 5.20% |
| Other private and institutional shareholders | 6,592,500 | 20.86% |
| Total | 31,610,000 | 100% |
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the twelve months of 2012 (unaudited), thousand Litas
Page 9
1.4. City Service Group
On 31 December 2012 the City Service AB group consists of City Service AB and the following subsidiaries (hereinafter referred to as „the Group“):
| Company | Country | Share of the stock held by the Group as of 31 December 2012 | Share of the stock held by the Group as of 31 December 2011 | Main activities |
|---|---|---|---|---|
| UAB Antakalnio büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Aukštaitijos büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Baltijos büstis priežiūra | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Baltijos liftai | Lithuania | 100% | 100% | Elevator installing & tech. support |
| UAB Baltijos NT valdymas | Lithuania | 100% | - | Real estate management |
| UAB Baltijos pastatų valdymas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Būsto administravimo agentūra | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Dainavos büstas | Lithuania | 100% | - | Dormant |
| UAB Danės büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Economus | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Ecoservice | Lithuania | 100% | 100% | Collection and removal of waste |
| UAB Justiniškių büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Jūros büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Kauno centro büstas | Lithuania | 100% | - | Dormant |
| UAB Karoliniškių büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Komunalinių įmonių kombinatas | Lithuania | 99.71% | 99.71% | Collection and removal of waste |
| UAB Lazdynų büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Mano büstas LT | Lithuania | 100% | 100% | Commercial real estate management and building maintenance |
| UAB Mano sauga | Lithuania | 51% | - | Security services |
| UAB Namų priežiūros centras | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Naujamiesčio büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Nemuno būsto priežiūra | Lithuania | 100% | - | Dormant |
| UAB Pagėgių savivaldybės komunalinis ūkis | Lithuania | 66% | 66% | Dormant |
| UAB Pašilaičių büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Pempininkų büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Radviliškio büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Sinsta | Lithuania | 100% | - | Dormant |
| UAB Skolos LT | Lithuania | 100% | 100% | Debt collection services |
| UAB SKT Environmental Services Klaipėda | Lithuania | 100% | - | Collection and removal of waste |
| UAB Specialus autotransportas | Lithuania | 100% | 100% | Collection and removal of waste |
| UAB Šiaulių büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Šiaulių liftas | Lithuania | 100% | 100% | Elevator installing & tech. support |
| UAB Šilutės büstas | Lithuania | 99.84% | 99.84% | Administration of dwelling-houses |
| UAB Tvar.com | Lithuania | 100% | 100% | Collection and removal of waste |
| UAB Vėtrungės büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Vilkpėdės büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Vingio büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Viršuliškių büstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the twelve months of 2012 (unaudited), thousand Litas
Page 10
| UAB Žaidas | Lithuania | 99.33% | 99.33% | Administration of dwelling-houses |
|---|---|---|---|---|
| UAB Žardės būstas | Lithuania | 100% | 100% | Administration of dwelling-houses |
| UAB Žirmūnų būstas | Lithuania | 100% | - | Administration of dwelling-houses |
| SIA Riga City Service | Latvia | 100% | 100% | Facility management |
| City Service Poland" Sp .z.o.o | Poland | 100% | - | Dormant |
| INTERBUD MAX Sp. z.o.o | Poland, Krakow | 100% | 100% | Dormant |
| Zespół Zarządców Nieruchomości WAM Sp. z o.o. | Poland | 100% | - | Administration of dwelling-houses |
| ТОВ Київ Сіті Сервіс | Ukraine | 100% | 100% | Administration of dwelling-houses |
| ОАО Сити Сервис / ОАО City service | Russia, St. Petersburg | 100% | 100% | Administration of dwelling-houses |
| ЗАО Сити Сервис / ZAO City service | Russia, St. Petersburg | 100% | 100% | Administration of dwelling-houses |
| ОАО Специализи-рованное ремонтно-наладочное управление | Russia, St. Petersburg | 100% | 100% | Construction and engineering |
| ООО Жилкомсервис № 3 Фрунзенского района | Russia, St. Petersburg | 80% | 80% | Administration of dwelling-houses |
| ООО «Чистый дом» | Russia, St. Petersburg | 100% | 100% | Maintenance and cleaning of territories |
| ООО «Управляющая компания -1» | Russia, Stavropol | 76% | 76% | Administration of dwelling-houses |
| ООО «ПРОМИНТЕР - управление проектами» | Russia, Stavropol | 100% | 100% | Administration of dwelling-houses |
| ООО «Управляющая компания -2» | Russia, Stavropol | 76% | 76% | Administration of dwelling-houses |
| ООО «Управляющая компания -3» | Russia, Stavropol | 76% | 76% | Administration of dwelling-houses |
| ООО «Управляющая компания -4» | Russia, Stavropol | 76% | 76% | Administration of dwelling-houses |
| ООО «Управляющая компания -5» | Russia, Stavropol | 76% | 76% | Administration of dwelling-houses |
| ООО «УК -5» | Russia, Stavropol | 100% | 100% | Administration of dwelling-houses |
| ООО «Управляющая компания -6» (legal entity code 2635085674) | Russia, Stavropol | 76% | 76% | Administration of dwelling-houses |
| ООО «Управляющая компания -6» (legal entity code 2635105070) | Russia, Stavropol | 100% | 100% | Administration of dwelling-houses |
| ООО «Жилищная Управляющая компания № 6» | Russia, Stavropol | 100% | 100% | Administration of dwelling-houses |
| ООО «Объединенная управляющая компания – 7» | Russia, Stavropol | 100% | 100% | Administration of dwelling-houses |
| ООО «Обслуживающая управляющая компания-7» | Russia, Stavropol | 100% | 100% | Administration of dwelling-houses |
| ООО «Управляющая компания – 8» (legal entity code 2635105218) | Russia, Stavropol | 100% | 100% | Administration of dwelling-houses |
| ООО «Управляющая компания – 10» | Russia, Stavropol | 100% | 100% | Administration of dwelling-houses |
The Group's and the Company's investment in an associate as of 31 December 2012 included an investment in Marijampolės butų ūkis UAB (34% of the share capital).
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the twelve months of 2012 (unaudited), thousand Litas
Page 11
1.5. Company's Board
As of 31 December 2012, the Board of the Company comprises of the following persons:
| Name and surname | Position | Start of term | End of term |
|---|---|---|---|
| Andrius Janukonis | Board Chairman | October 6, 2009 | October 6, 2013 |
| Gintautas Jaugielavičius | Board Member | October 6, 2009 | October 6, 2013 |
| Darius Leščinskas | Board Member | October 6, 2009 | October 6, 2013 |
| Žilvinas Lapinskas | Board Member | April 30, 2010 | October 6, 2013 |
They do not control any shares of the Company.
Andrius Janukonis
Andrius Janukonis (born in 1971) is the Chairman of the Board of AB City Service (since 2009). He holds a Master's degree in Law. He works as a consultant for ICOR UAB and is the chairman of the board of the company (since 2004).
Gintautas Jaugielavičius
Gintautas Jaugielavičius (born in 1971) is a Member of the Board of AB City Service (since 2005). He holds a Bachelor's degree in Economics. At present, he works as a consultant for ICOR UAB and is a member of the board of the company (since 2004).
Darius Leščinskas
Darius Leščinskas (born in 1968) is a Member of the Board of AB City Service (since 2009). He holds a Master's degree in Law. At present, he works as a consultant for ICOR UAB and is a member of the board of the company (since 2004).
Žilvinas Lapinskas
Refer described below (note 1.6).
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the twelve months of 2012 (unaudited), thousand Litas
Page 12
1.6. Company's Management
As of 31 December 2012 and as of date of submission of this report, the key managers of the Company and of the Group are as follows:
| Name and surname | Position within the Company | Start of employment |
|---|---|---|
| Žilvinas Lapinskas | General Manager, the Board member | March 1999 |
| Jonas Janukėnas | Financial and Administrative Director | May 2007 |
| Vytautas Turonis | Executive Manager for Lithuania | May 2004 |
| Tomas Augutavičius | Chairman of the Board of City Service group in Russia | June 2006 |
| Edvinas Paulauskas | Commercial Director | February 2005 |
They do not control any shares of the Company.
Žilvinas Lapinskas
Žilvinas Lapinskas (born in 1976) is the General Manager of AB City Service (since 2004). He completed business administration studies. He started working in the Company in 1999 and worked as the Commercial Manager (1999 – 2002) and the Facilities Management Department Head (2002 – 2004).
At present, the main task of the General Manager is to head the Group and take charge of planning and coordination of important development projects in Russia, Poland, as well as other markets in Eastern and Western Europe.
Jonas Janukėnas
Jonas Janukėnas (born in 1976) is the Financial and Administrative Manager of AB City Service (since 2007). Since 2012, Mr. Janukėnas is also the Chairman of the Board at Mano būstas LT. He holds a Master's degree in Business Administration. Prior to coming to work at the Company, he worked as the Senior Auditor and Risk Management Consultant at the Vilnius division of Andersen (1998 – 2001) and the Financial Manager of UAB Litesko (2001 – 2007).
The Finance and Administrative Manager Jonas Janukėnas is responsible for the management of financial resources of the Group and for supervision of the administrative staff, IT projects implementation and Lean 6 Sigma project.
Vytautas Turonis
Vytautas Turonis (born 1972 m.) is the General Manager at Mano būstas LT UAB and works as the Executive Manager for Lithuania at City Service AB. He holds a Bachelor's degree in International Business. Previously he worked as the Marketing Manager of UAB Specialus Autotransportas (2003 – 2004). He started to work in the Company as the Market Development Department Manager (2004 – 2008).
General Manager is responsible for the Group's activities throughout Lithuania.
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the twelve months of 2012 (unaudited), thousand Litas
Page 13
1.6. Company's Management (cont'd)
Tomas Augutavičius
Tomas Augutavičius (born 1973 m.) is the Chairman of the Board of City Service group in Russia (since 2009). He holds a Bachelor degree in technology. He started working in the Company as Head of Kaunas Department (2006 - 2009).
The Chairman of the Board of City Service group in Russia Tomas Augutavičius is responsible for activities of companies operating in Russia.
Edvinas Paulauskas
Edvinas Paulauskas (born 1976) is the Executive Manager at Mano būstas LT UAB and Commercial Director at City Service AB. He holds a Bachelor's degree in Environment Engineering. Edvinas Paulauskas started working in the Company in 2005 and worked as the Project Manager (2005 - 2006) and Executive Manager (2006 - 2008).
Edvinas Paulauskas is responsible for the facility management projects of commercial and public establishments and for lift maintenance and renovation.
1.7. Activity and Segment Information
Information on main activity segments:
| 2012 | 2011 | |||||
|---|---|---|---|---|---|---|
| Heating infrastructure renovation, extra works | Buildings' administration | Heating infrastructure renovation, extra works | Buildings' administration | |||
| Resale of utility services | Administration services | Resale of utility services | Administration services | |||
| Revenue: Company | - | - | 53,068 | 6,748 | - | 108,808 |
| Revenue: Group | - | 171,063 | 365,399 | 6,748 | 189,980 | 351,115 |
Information on main geographical segments for the Group:
| 2012 | 2011 | |||
|---|---|---|---|---|
| Baltic states | CIS States | Baltic states | CIS States | |
| Revenue | 240,709 | 295,753 | 210,448 | 337,395 |
| Net profit (loss) | 18,827** | 5,639* | 24,051 | 5,436 |
- OOO «Жилкомсервис № 2 Невского района» disposal loss of LTL 7,367 thousand excluded.
** Does not include LTL 1,768 thousand of consulting and tax expenses related with acquisitions in Poland.
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the twelve months of 2012 (unaudited), thousand Litas
Page 14
Main activity indicators for the Group:
| 2012 | 2011 | Change (%) | |
|---|---|---|---|
| Area of multi-flat apartment buildings under administration (million square meters) | 21.9 | 15.8 | 38.6% |
| Area of public. commercial building and a typical properties under administration (million square meters) | 3.3 | 2.9 | 8.7% |
| Number of employees | 3,959 | 3,455 | 15.3% |
| Sales for the period | 536,462 | 547,843 | (2.1%) |
| Sales (main activity)* | 365,399 | 357,863 | 2.1% |
| Gross margin* | 30.9% | 31.6% | -2.4% |
| EBITDA margin* | 11.4% | 10.0% | 14.6% |
| EBIT margin* | 7.8% | 6.9% | 13.3% |
| Net margin* | 4.2% | 7.1% | (41.0%) |
| Number of shares (thousand) | 31,610 | 31,610 | 0% |
| Return on equity | 9.0% | 17.6% | (49.0%) |
| Return on assets | 4.1% | 8.5% | (52.0%) |
| Financial Net Debt to equity** | 4% | 0.9% | 379.5% |
- Calculated by reducing sales for the resale of utility services.
** Interest bearing debt (net of cash balance) to Shareholders' equity.
2. Accounting Policies
These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the European Union.
3. Goodwill
| Group | |
|---|---|
| Cost: | |
| Balance as of 1 January 2011 | 64,474 |
| Additions | 4,991 |
| Exchange differences | (103) |
| Balance as of 31 December 2011 | 69,362 |
| Additions | 4,436 |
| Disposals | (9,248) |
| Balance as of 31 December 2012 | 64,550 |
| Impairment: | |
| Balance as of 1 January 2011 | 290 |
| Impairment for the year | - |
| Balance as of 31 December 2011 | 290 |
| Impairment for the year | 19,500 |
| Balance as of 31 December 2012 | 19,790 |
| Net book value as of 31 December 2012 | 44,760 |
| Net book value as of 31 December 2011 | 69,072 |
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the twelve months of 2012 (unaudited), thousand Litas
Page 15
3. Goodwill (cont'd)
Investments and other changes during the twelve months of the year 2012
On 10-12 January 2012 the Company established three new subsidiaries – Nemuno büsto priežiūra UAB, Baltijos NT valdymas UAB and Neries būstas UAB (now Dainavos būstas UAB). Establishment of the companies is related to planned expansion in Lithuania. As a result, no goodwill has been accounted for.
On 27 March 2012 share capital of Saulės valda UAB (now Šiaulių būstas UAB) was increased by LTL 3.1 million by additional ordinary share issue of 3,100 thousand shares. The share capital was increased by netting off with the receivable from the subsidiary. At the date of issue of these financial statements the share capital of Šiaulių būstas UAB amounts to LTL 3,761,214.
In May the Company continued the process of brand unification in secondary companies. The names of the companies operating in Šiauliai and Radviliškis were changed. Saulės Valda, UAB and Radviliškio Komunalinės Paslaugos, UAB were changed to Šialių Būstas, UAB and Radviliškio Būstas, UAB respectively.
During the first half of the year 2012 the Company has transferred the commercial real estate management, maintenance activities and all the subsidiaries which manage residential facility in Lithuania and perform other activities related with the residential facility management, except for Lazdynų būstas UAB which shares are the object of the litigation, to the subsidiary of the Company City Service LT UAB (legal entity code 300883806 now – Mano būstas LT UAB) direct control. The transfer has been made by implementing the decision of the Board of the Company, adopted on 29 December 2011. The above mentioned internal transfer had no impact towards financial position of the Group.
On 3rd of July two newly established companies ANVO Baltic, UAB (now Kauno centro būstas, UAB) and ANV Capital, UAB (now Sinsta, UAB) have been acquired.
On 12th of July the Company's subsidiary ANV Capital, UAB has acquired 100 % shares of Mano būstas, UAB, legal entity code 124450551. The value of the contract is LTL 30 thousand. The acquired company after the process of reorganization has been incorporated to its sole shareholder company and at the date of submission of these financial statements is removed from the Register of Legal Entities.
On 31st of August the Company's subsidiary OOO Жилкомсервис № 2 Невского района, which operates in Russia, St. Petersburg has been sold. The value of the contract is RUB 54 million. Accounting loss on disposal amounted to LTL 7,367 thousand.
On 26th of September the Company has acquired 100 % shares of Žirmūnų būstas, UAB, legal entity code 121483222. The acquired company maintains services of administration of dwelling-houses in Vilnius city (Lithuania).
On 1st of October the 51 % of "Mano sauga", UAB, legal entity code 302628213, shares has been acquired. "Mano sauga", UAB provides security services in Lithuania.
On 22th of November the new subsidiary „City Service Poland“ Sp. z.o.o. was established. This decision is related to the expansion of Group's business activities in Poland.
On 17th of December the Company has acquired 100% shares of Zespół Zarządców Nieruchomości WAM Sp. z o.o. (ZZN further on). The value of the transaction was PLN 45 million, including related taxes. ZZN provides residential apartment building management services, also acts as producer and supplier of heat in Poland.
On 20th of December the Company's subsidiary Specialus autotransportas, UAB has acquired 100 % shares of SKT Environmental Services Klaipėda, UAB, legal entity code 110734883. SKT Environmental Services Klaipėda, UAB provides services of collection and removal of waste in Klaipeda region (Lithuania).
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the twelve months of 2012 (unaudited), thousand Litas
Page 16
3. Goodwill (cont'd)
At the acquisition of these subsidiaries goodwill of LTL 4,436 thousand has been accounted for. The goodwill appears due to expected synergies, which are expected to be derived from vertical expansion of business.
Also a gain of LTL 23,114 thousand from a bargain purchase as well as goodwill impairment of LTL 19,500 thousand was recognised in the Group's statement of comprehensive income in 2012.
The differences between the amounts paid and the fair values of assets acquired and liabilities and contingent liabilities assumed for the acquisitions of 2012 were as follows:
| Žirmūnų būstas UAB | Mano sauga UAB | Zespół Zarządców Nieruchomości WAM Sp. z.o.o. | SKT Environmental Services Klaipėda UAB | |
|---|---|---|---|---|
| Date of acquisition, 2012 | 26 September | 1 October | 17 December | 18 December |
| Fair value of acquired assets, liabilities and contingent liabilities attributable to the Group | 5,694 | (45) | 60,907 | 3,227 |
| Goodwill | 4,236 | 45 | (23,114) | 155 |
| Total purchase consideration | 9,930 | - | 37,793 | 3,382 |
| Cash acquired | 3,232 | 4 | 15,544 | 88 |
| Total purchase consideration, net of cash acquired | 6,698 | (4) | 22,249 | 3,294 |
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the twelve months of 2012 (unaudited), thousand Litas
Page 17
4. Other intangible assets
Movement of other intangible assets in 2012 and 2011 is presented below:
| Group | Company | |
|---|---|---|
| Cost: | ||
| Balance as of 1 January 2011 | 79,468 | 1,156 |
| Additions arising from acquisitions of subsidiaries | 6,353 | - |
| Additions | 634 | 221 |
| Disposals | (161) | (2) |
| Retirements | (168) | (17) |
| Reclassifications | 684 | 313 |
| Balance as of 31 December 2011 | 86,810 | 1,671 |
| Additions arising from acquisitions of subsidiaries | 12,955 | - |
| Additions | 284 | 45 |
| Disposals of subsidiaries | (12,472) | - |
| Disposals | (8) | (2) |
| Exchange differences | - | - |
| Retirements | (162) | |
| Reclassifications | - | (1,699) |
| Balance as of 31 December 2012 | 87.407 | 15 |
| Accumulated amortisation: | ||
| Balance as of 1 January 2011 | 4,810 | 372 |
| Charge for the year | 3,334 | 130 |
| Disposals | (1) | - |
| Retirements | (25) | (17) |
| Balance as of 31 December 2011 | 8,118 | 485 |
| Charge for the year | 3,381 | 18 |
| Disposals | - | (1) |
| Disposals of subsidiaries | (987) | - |
| Retirements | (78) | - |
| Reclassifications | - | (490) |
| Balance as of 31 December 2012 | 10,434 | 12 |
| Net book value as of 31 December 2012 | 76,973 | 3 |
| Net book value as of 31 December 2011 | 78,692 | 1,186 |
The Group and the Company have not capitalised any internally generated intangible assets. Amortisation expenses of intangible assets are included within general and administrative expenses in the statement of comprehensive income.
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the twelve months of 2012 (unaudited), thousand Litas
Page 18
5. Property, plant and equipment
Movement of property, plant and equipment in 2012 and 2011 is presented below:
| Group | Buildings | Vehicles | Other property, plant and equipment | Construction in progress | Total |
|---|---|---|---|---|---|
| Cost: | |||||
| Balance as of 1 January 2011 | 23,621 | 21,240 | 10,978 | 1,567 | 57,406 |
| Additions arising from acquisitions of subsidiaries | 507 | 1,215 | 1,506 | - | 3,228 |
| Additions | 897 | 6,817 | 5,581 | 148 | 13,443 |
| Disposals | (929) | (1,038) | (497) | - | (2,464) |
| Exchange differences | (1) | (83) | (70) | (6) | (160) |
| Retirements | - | (414) | (2,039) | (29) | (2,482) |
| Reclassifications | 610 | 592 | - | (1,632) | (430) |
| Balance as of 31 December 2011 | 24,705 | 28,329 | 15,459 | 48 | 68,541 |
| Additions arising from acquisitions of subsidiaries | 15,902 | 1,530 | 20,725 | 280 | 38,437 |
| Additions | 281 | 3,911 | 3,784 | - | 7,976 |
| Disposals | - | (2,140) | (1,386) | - | (3,526) |
| Exchange differences | - | 119 | 34 | 2 | 155 |
| Retirements | - | (1,903) | (2,327) | (1) | (4,231) |
| Balance as of 31 December 2012 | 40,888 | 29,846 | 36,289 | 329 | 107,352 |
| Accumulated depreciation: | |||||
| Balance as of 1 January 2011 | 2,571 | 5,297 | 1,724 | - | 9,592 |
| Charge for the year | 1,097 | 4,184 | 4,072 | - | 9,353 |
| Disposals | (213) | (896) | (315) | - | (1,424) |
| Exchange differences | - | (29) | (14) | - | (43) |
| Retirements | - | (260) | (1,487) | - | (1,747) |
| Reclassifications | 59 | - | - | - | 59 |
| Balance as of 31 December 2011 | 3,514 | 8,296 | 3,980 | - | 15,790 |
| Charge for the year | 1,120 | 4,414 | 4,244 | - | 9,778 |
| Disposals | - | (1,607) | (879) | - | (2,486) |
| Exchange differences | - | 43 | 17 | - | 60 |
| Retirements | - | (1,332) | (2,443) | - | (3,775) |
| Balance as of 31 December 2012 | 4,634 | 9,814 | 4,919 | - | 19,367 |
| Net book value as of 31 December 2012 | 36,254 | 20,032 | 31,370 | 329 | 87,985 |
| Net book value as of 31 December 2011 | 21,191 | 20,033 | 11,479 | 48 | 52,751 |
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the twelve months of 2012 (unaudited), thousand Litas
Page 19
5. Property, plant and equipment (cont'd)
| Company | Vehicles | Other property, plant and equipment | Construction in progress | Total |
|---|---|---|---|---|
| Cost: | ||||
| Balance as of 1 January 2011 | 3,864 | 2,868 | 242 | 6,974 |
| Additions | 2,110 | 606 | 71 | 2,787 |
| Disposals | (123) | (21) | - | (144) |
| Retirements | - | (214) | - | (214) |
| Reclassifications | - | - | (313) | (313) |
| Balance as of 31 December 2011 | 5,851 | 3,239 | - | 9,090 |
| Additions | 55 | 116 | - | 171 |
| Disposals | (62) | (16) | - | (78) |
| Retirements | - | - | - | - |
| Reclassifications | (5,230) | (3,034) | - | (8,264) |
| Balance as of 31 December 2012 | 614 | 305 | - | 919 |
| Accumulated depreciation: | ||||
| Balance as of 1 January 2011 | 2,274 | 1,700 | - | 3,974 |
| Charge for the year | 798 | 601 | - | 1,399 |
| Disposals | (102) | (11) | - | (113) |
| Retirements | - | (214) | - | (214) |
| Balance as of 31 December 2011 | 2,970 | 2,076 | - | 5,046 |
| Charge for the year | 142 | 105 | - | 247 |
| Disposals | (12) | (11) | - | (23) |
| Retirements | - | - | - | - |
| Reclassifications | (2,816) | (1,954) | - | (4,770) |
| Balance as of 31 December 2012 | 284 | 216 | - | 500 |
| Net book value as of 31 December 2012 | 330 | 89 | - | 419 |
| Net book value as of 31 December 2011 | 2,881 | 1,163 | - | 4,044 |
6. Investments to Subsidiaries
The Company's investments to subsidiaries movement from 31 December 2011 to 31 December 2012 is represented below:
| Cost of investments at the beginning of the year | 127,913 |
|---|---|
| Increase of authorised share capital of UAB Baltijos NT valdyas | 1,637 |
| "City Service Poland" Sp. z o.o establishment | 4 |
| Transfer of Company's activities (note 3) to UAB Mano bustas LT | 27,357 |
| Cost of investments at the period end | 156,911 |
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the twelve months of 2012 (unaudited), thousand Litas
Page 20
7. Borrowings
Borrowings of the Group and the Company as of 31 December 2012 and 31 December 2011 were as follows:
| Creditor | Currency of the loan | Amount of the loan (in currency of the loan) | Final repayment date | Balance as of 31 December 2012 (in LTL) | Balance as of 31 December 2011 (in LTL) | Company | |
|---|---|---|---|---|---|---|---|
| Balance as of 31 December 2012 (in LTL) | Balance as of 31 December 2011 (in LTL) | ||||||
| Current loans | |||||||
| Swedbank, AB (overdraft) | EUR | 1,448 | 17.08.2013 | 5,000 | 86 | 5,000 | 86 |
| Swedbank, AB (overdraft) | LTL | 5,000 | 17.08.2013 | 83 | - | 83 | - |
| Swedbank, AB | LTL | 12,775 | 10.06.2013 | 12,775 | - | 12,775 | - |
| DNB bank, AB (UAB Ecoservice) | EUR | 435 | 29.11.2013 | 927 | 770 | - | - |
| AS UniCredit Bank (UAB Tvar.com) | LTL | 350 | 15.02.2013 | 129 | - | - | - |
| Group Account (eliminated in the consolidated group accounts)* | Unspecified | Unspecified | Unspecified | - | - | 17,092 | 3,062 |
| Current loan balance | 18,914 | 856 | 34,950 | 3,148 | |||
| Non-current loans | |||||||
| Swedbank, AB | EUR | 10,486 | 09.08.2015 | 18,417 | 25,533 | 18,417 | 25,533 |
| Swedbank, AB | EUR | 6,000 | 10.12.2017 | 20,717 | - | 20,717 | - |
| AS UniCredit Bank (UAB Tvar.com) | EUR | 309 | 15.01.2013 | 80 | 1,067 | - | - |
| Less: current portion of non-current borrowings | (9,498) | (8,103) | (9,418) | (7,116) | |||
| Non-current loan balance | 29,716 | 18,497 | 29,716 | 18,417 |
- Based overdraft facility agreement signed on 25 August 2008 with the Company, its subsidiaries operating in Lithuania and with Swedbank, AB, the Group can utilise net cash balances of the Company and its subsidiaries operating in Lithuania as inter-group borrowings.
For the loan and overdraft facility the Company and its subsidiaries have pledged to the bank real estate and bank accounts of the Company and its subsidiaries in Lithuania.
8. Cost of Sales
| Group | Company | |||
|---|---|---|---|---|
| 2012 | 2011 | 2012 | 2011 | |
| Services of subcontractors and materials used | 334,746 | 352,814 | 39,848 | 61,351 |
| Wages and salaries and social security | 68,749 | 68,100 | 2,502 | 22,074 |
| Cost of goods sold | 9,336 | 5,345 | 2 | 1,022 |
| Depreciation | 5,929 | 5,741 | - | - |
| Other | 4,827 | 2,595 | - | - |
| Total cost of sales | 423,587 | 434,595 | 42,352 | 84,447 |
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the twelve months of 2012 (unaudited), thousand Litas
Page 21
9. General and Administrative Expenses
| Group | Company | |||
|---|---|---|---|---|
| 2012 | 2011 | 2012 | 2011 | |
| Wages and salaries and social security | 36,164 | 35,751 | 2,913 | 7,218 |
| Allowance for and write-off of receivables | 7,830 | 5,946 | (841) | 641 |
| Allowance for long term receivables | 4,233 | - | - | - |
| Depreciation and amortisation | 7,229 | 6,924 | 262 | 1,507 |
| Consulting and similar expenses | 3,539 | 3,173 | 2,556 | 1,374 |
| Commissions for collection of payments | 3,068 | 4,819 | 279 | 1,904 |
| Rent of premises and other assets | 2,934 | 3,324 | 440 | 1,149 |
| Bonuses | 2,420 | 800 | 2,421 | 800 |
| Fuel expenses | 1,520 | 1,410 | 85 | 220 |
| Utilities | 1,276 | 1,144 | 404 | 379 |
| Transportation | 1,165 | 1,204 | 48 | 172 |
| Computer software maintenance | 1,131 | 955 | 25 | 125 |
| Advertising | 1,062 | 1,524 | 365 | 905 |
| Communication expenses | 1,047 | 1,239 | 126 | 231 |
| Taxes other than income tax | 585 | 646 | 17 | 78 |
| Business trips and training | 786 | 863 | 349 | 571 |
| Insurance | 699 | 556 | 43 | 196 |
| Representational costs | 712 | 654 | 224 | 464 |
| Bank payments | 521 | 500 | 9 | 22 |
| Charity and support | 346 | 561 | 198 | 480 |
| Consulting and tax expenses related with acquisitions in Poland | 1,768 | - | - | - |
| Other | 6,209 | 3,890 | 809 | 1,443 |
| Total general and administrative expenses | 86,244 | 75,883 | 10,732 | 19,879 |
10. Related Party Transactions
The parties are considered related when one party has the possibility to control the other one or have significant influence over the other party in making financial and operating decisions. The related parties of the Group and the Company and considered the following:
- UAB Lag&d – the ultimate shareholder of the Company since 2010;
- UAB ICOR – the shareholder of the Company;
- Subsidiaries of UAB ICOR (same ultimate controlling shareholder);
- Subsidiaries of AB City Service (for the list of the subsidiaries, see also Note 1);
- Mr. Ž. Lapinskas, J. Janukénas, V. Turonis (Management of the Company).
Transactions with related parties include sales and purchases of goods and services in the ordinary course of business, and acquisitions and disposals of property, plant and equipment. Property, plant and equipment to related parties during the first half of 2012 was sold for the net book value.
The sales price for the intercompany subsidiary purchase and sale transactions are established by the management and shareholders of the UAB ICOR and/or UAB Lag&d and AB City Service considering the results of independent valuations, if any, undertaken for the purposes of the transfer pricing regulations – which may not always be at their fair value.
There are no guarantees or pledges given or received in respect of the related party payables and receivables. Related party receivables and payables are expected to be settled in cash or set-off against payables / receivables to / from a respective related party.
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]
Consolidated and parent company's interim financial statements for the twelve months of 2012 (unaudited), thousand Litas
Page 22
10. Related Party Transactions (cont'd)
2012
| Group | Purchases | Sales | Receivables and prepayments | Loans granted | Payables (long and short-term) |
|---|---|---|---|---|---|
| UAB ICOR | 2,540 | 24 | 7 | - | 11,409 |
| Subsidiaries of UAB ICOR: | 2,329 | 886 | 2 | - | 796 |
| AB Axis Industries | |||||
| Other subsidiaries of UAB ICOR | 1,392 | 2,737 | 916 | - | 252 |
| Management of the Company | - | - | - | 204 | - |
| Shareholders of the Company | - | - | 25 | - | - |
| Total | 6,261 | 3,647 | 950 | 204 | 12,457 |
2012
| Company | Purchases | Sales | Receivables and prepayments | Loans granted | Payables (long and short-term) |
|---|---|---|---|---|---|
| UAB ICOR | 1,440 | 19 | - | - | 7,015 |
| Subsidiaries of UAB ICOR: | 906 | 677 | - | - | 239 |
| AB Axis Industries | |||||
| Other subsidiaries of UAB ICOR | 8 | 1,630 | 55 | - | - |
| Subsidiaries of the Company | 9,203 | 78,670 | 4,286 | 51,183 | 4,674 |
| Management of the Company | - | 11 | - | 204 | - |
| Shareholders of the Company | - | - | 25 | - | - |
| Total | 11,557 | 81,007 | 4,366 | 51,387 | 11,928 |
11. Subsequent Events
During January and February, 2013 the names of the subsidiaries of the Company which operate in Vilnius and Kaunas cities have been changed. Lazdynų būstas UAB, Sinsta UAB and Būsto administravimo agentūra UAB have been renamed respectively into Lazdynų būtų ūkis UAB, Lazdynų būstas UAB and Nemuno būstas UAB.
AB City Service
Company code 123905633,
Adress: Smolensko st. 12, Vilnius, Lithuania
www.cityservice.lt
[email protected]