Invalda INVL — Interim / Quarterly Report 2013

Nov 29, 2013

AB INVALDA LT

CONSOLIDATED AND COMPANY'S INTERIM CONDENSED NOT-AUDITED FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013 PREPARED ACCORDING TO INTERNATIONAL FINANCIAL REPORTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION

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AB INVALDA LT
CONSOLIDATED AND COMPANY'S INTERIM CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013
(all amounts are in LTL thousand unless otherwise stated)

GENERAL INFORMATION

Board of Directors

Mr. Alvydas Banys (chairman of the Board)
Mrs. Indre Mišeikytė
Mr. Darius Šulnis

Management

Mr. Darius Šulnis (president)
Mr. Raimondas Rajeckas (chief financial officer)

Principal place of business and company code

Seimyniskiu Str. 1A,
Vilnius,
Lithuania
Company code 121304349

Bankers

Nordea Bank Finland Plc Lithuania Branch
AB DNB Bankas
AB SEB Bankas
Danske Bank A/S Lithuania Branch
Bankas Finasta AB
Šiaulių Bankas AB
"Swedbank", AB
Citadele bankas AB
UAB Medicinos Bankas
Bank DnB NORD Polska S. A.

The financial statements were approved and signed by the Management and the Board of Directors on 29 November 2013.

Mr. Darius Šulnis
President

Mr. Raimondas Rajeckas
Chief financial officer

2

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AB INVALDA LT

CONSOLIDATED AND COMPANY'S INTERIM CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013

(all amounts are in LTL thousand unless otherwise stated)

Interim consolidated and Company's income statements

	Group		Company
		Nine months of 2013	Nine months of 2012	Nine months of 2013	Nine months of 2012
Continuing operations		Unaudited		Unaudited
Revenue
Residential real estate revenue		2,380	6,925	-	-
Rent and other real estate revenue		17,301	18,804	-	-
Information technology revenue		31,024	23,933	-	-
Facility management		10,281	8,471	-	-
Other production and services revenue		7,041	8,884	-	-
Total revenue		68,027	67,017	-	-
Other income	10.3	1,365	2,747	22,196	37,863
Net gains (losses) on disposal of subsidiaries, associates and joint ventures		1,333	1,282	(517)	(1,052)
Net gains (losses) from fair value adjustments on investment property		323	(9,223)	-	-
Net changes in fair value of financial assets at fair value through profit or loss		680	8,218	680	5,528
Gain on the split-off	9	89,358	-	67,784	-
Changes in inventories of finished goods and work in progress		256	(96)	-	-
Raw materials and consumables used		(19,858)	(16,145)	(14)	(16)
Changes in residential real estate		(1,967)	(4,952)	-	-
Employee benefits expenses		(18,712)	(17,862)	(1,799)	(2,058)
Impairment, write-down and provisions		433	933	449	(12,642)
Premises rent and utilities		(10,017)	(9,896)	(126)	(124)
Depreciation and amortisation		(3,083)	(3,221)	(31)	(57)
Repair and maintenance cost of premises		(4,534)	(3,869)	-	-
Other expenses		(10,710)	(10,760)	(725)	(802)
Operating profit (loss)		92,894	4,173	87,897	26,640
Finance costs		(1,720)	(3,274)	(278)	(781)
Share of profit (loss) of associates and joint ventures		6,052	9,387	-	-
Profit (loss) before income tax		97,226	10,286	87,619	25,859
Income tax credit (expenses)	7	(670)	(395)	(615)	(1,703)
Profit (loss) for the period from continuing operations		96,556	9,891	87,004	24,156
Discontinued operation
Profit/(Loss) after tax for the period from discontinued operation		9	3,962	19,549	-
PROFIT (LOSS) FOR THE PERIOD		100,518	29,440	87,004	24,156
Attributable to:
Equity holders of the parent		99,508	24,257	87,004	24,156
Non-controlling interests		1,010	5,183	-	-
		100,518	29,440	87,004	24,156
Basic earnings per share (in LTL)	13	2.61	0.46	2.28	0.46
Basic earnings per share (in LTL) from continuing operations		2.53	0.19	2.28	0.46
Diluted earnings per share (in LTL)	13	2.61	0.46	2.28	0.46
Diluted earnings per share (in LTL) from continuing operations		2.53	0.19	2.28	0.46

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AB INVALDA LT

CONSOLIDATED AND COMPANY'S INTERIM CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013

(all amounts are in LTL thousand unless otherwise stated)

Interim consolidated and Company's statements of comprehensive income

	Group		Company
	Nine months of 2013	Nine months of 2012	Nine months of 2013	Nine months of 2012
PROFIT (LOSS) FOR PERIOD	Unaudited		Unaudited
	100,518	29,440	87,004	24,156
Continuing operation
Other comprehensive income to be reclassified to profit or loss in subsequents periods:
Net gain (loss) on available-for-sale financial assets	-	-	-	-
Reclassification adjustment for gain (loss) included in profit or loss	-	-	-	-
Income tax	-	-	-	-
	-	-	-	-
Exchange differences on translation of foreign operations	(55)	41	-	-
Share of other comprehensive income (loss) of associations	-	-	-	-
Net other comprehensive income to be reclassified to profit or loss in subsequents periods	(55)	41	-	-
Other comprehensive income (loss) for the period from continuing operation	(55)	41	-	-
Other comprehensive income (loss) for the period, net of tax	(55)	41	-	-
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD, NET OF TAX	100,463	29,481	87,004	24,156
Attributable to:
Equity holders of the parent	99,463	24,290	87,004	24,156
Non-controlling interests	1,000	5,191	-	-

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AB INVALDA LT

CONSOLIDATED AND COMPANY'S INTERIM CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013

(all amounts are in LTL thousand unless otherwise stated)

Interim consolidated and Company's income statements

	Group		Company
	3^{st} Quarter 2013	3^{st} Quarter 2012	3^{st} Quarter 2013	3^{st} Quarter 2012
Continuing operations	Unaudited		Unaudited
Revenue
Residential real estate revenue	-	368	-	-
Rent and other real estate revenue	4,652	5,984	-	-
Information technology revenue	11,967	8,703	-	-
Facility management	3,940	3,251	-	-
Other production and services revenue	1,723	2,856	-	-
Total revenue	22,282	21,162	-	-
Other income	325	532	17,880	2,969
Net gains (losses) on disposal of subsidiaries, associates and joint ventures	-	-	-	-
Net gains (losses) from fair value adjustments on investment property	-	(9,498)	-	-
Net changes in fair value of financial assets at fair value through profit or loss	408	1,163	408	(47)
Gain on the split-off	-	-	-	-
Changes in inventories of finished goods and work in progress	(47)	18	-	-
Raw materials and consumables used	(6,473)	(4,672)	(2)	(4)
Changes in residential real estate	-	(227)	-	-
Employee benefits expenses	(5,537)	(5,739)	(402)	(656)
Impairment, write-down and provisions	227	57	461	(13,721)
Premises rent and utilities	(2,882)	(2,854)	(35)	(37)
Depreciation and amortisation	(905)	(1,073)	(5)	(16)
Repair and maintenance cost of premises	(1,921)	(1,432)	-	-
Other expenses	(3,698)	(5,270)	(124)	(200)
Operating profit (loss)	1,779	(7,833)	18,181	(11,712)
Finance costs	(621)	(645)	(96)	(5)
Share of profit (loss) of associates and joint ventures	2,414	3,675	-	-
Profit (loss) before income tax	3,572	(4,803)	18,085	(11,717)
Income tax credit (expenses)	(531)	601	(292)	(296)
Profit (loss) for the period from continuing operations	3,041	(4,202)	17,793	(12,013)
Discontinued operation
Profit/(Loss) after tax for the period from discontinued operation	-	8,692	-	-
PROFIT (LOSS) FOR THE PERIOD	3,041	4,490	17,793	(12,013)
Attributable to:
Equity holders of the parent	3,063	2,120	17,793	(12,013)
Non-controlling interests	(22)	2,370	-	-
	3,041	4,490	17,793	(12,013)
Basic earnings per share (in LTL)	0.46	0.04	0.75	(0.22)
Basic earnings (deficit) per share (in LTL) from continuing operations	0.45	(0.08)	0.75	(0.22)
Diluted earnings per share (in LTL)	0.46	0.04	0.75	(0.20)
Diluted earnings (deficit) per share (in LTL) from continuing operations	0.45	(0.08)	0.75	(0.20)

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AB INVALDA LT

CONSOLIDATED AND COMPANY'S INTERIM CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013

(all amounts are in LTL thousand unless otherwise stated)

Interim consolidated and Company's statements of comprehensive income

	Group		Company
	3^{st} Quarter 2013	3^{rd} Quarter 2012	3^{st} Quarter 2013	3^{rd} Quarter 2012
PROFIT (LOSS) FOR PERIOD	Unaudited 3,041	4,490	17,793	(12,013)
Continuing operation
Other comprehensive income to be reclassified to profit or loss in subsequents periods:
Net gain (loss) on available-for-sale financial assets	-	-	-	-
Reclassification adjustment for gain (loss) included in profit or loss	-	-	-	-
Income tax	-	-	-	-
	-	-	-	-
Exchange differences on translation of foreign operations	18	10	-	-
Share of other comprehensive income (loss) of associates	-	-	-	-
Net other comprehensive income to be reclassified to profit or loss in subsequents periods	18	10	-	-
Other comprehensive income (loss) for the period from continuing operation	18	10	-	-
Other comprehensive income (loss) for the period, net of tax	18	10	-	-
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD, NET OF TAX	3,059	4,500	17,793	(12,013)
Attributable to:
Equity holders of the parent	3,076	2,128	17,793	(12,013)
Non-controlling interests	(17)	2,372	-	-

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AB INVALDA LT

CONSOLIDATED AND COMPANY'S INTERIM CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013

(all amounts are in LTL thousand unless otherwise stated)

Interim consolidated and Company's statements of financial position

	Group		Company
	As at 30 September 2013	As at 31 December 2012	As at 30 September 2013	As at 31 December 2012
	Unaudited	Audited	Unaudited	Audited
ASSETS Non-current assets
Property, plant and equipment	5,618	47,471	36	127
Investment properties	168,210	225,587	-	-
Intangible assets	10,131	11,390	44	13
Investments into subsidiaries	8	-	63,135	98,119
Investments into associates and joint ventures	8	88,749	48,799	25,108
Investments available-for-sale	1,705	2,859	1,705	1,817
Loans granted	16,492	-	42,995	82,862
Trade and other receivables long term	3,094	5,156	2,405	-
Other non-current assets	2,848	2,848	-	-
Deferred income tax asset	9,652	19,624	9,083	17,401
Total non-current assets	306,499	363,734	144,511	201,024
Current assets
Inventories	4,229	39,564	-	-
Trade and other receivables	34,854	35,833	16,971	273
Current loans granted	498	31,730	21,913	104,193
Prepaid income tax	285	1,521	-	3
Prepayments and deferred charges	1,067	3,441	64	155
Financial assets at fair value through profit loss	14	4,716	32,974	4,716
Deposits and financial assets held to maturity	5	-	21,418	-
Restricted cash	4,729	3,602	-	-
Cash and cash equivalents	5	10,487	56,092	6,388
Total current assets	60,865	226,175	50,052	171,169
Total assets	367,364	589,909	194,563	372,193

(cont'd on the next page)

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AB INVALDA LT

CONSOLIDATED AND COMPANY'S INTERIM CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013

(all amounts are in LTL thousand unless otherwise stated)

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

	Group		Company
		As at 30 September 2013	As at 31 December 2012	As at 30 September 2013	As at 31 December 2012
EQUITY AND LIABILITIES		Unaudited	Audited	Unaudited	Audited
Equity
Equity attributable to equity holders of the parent
Share capital	9, 11	24,834	51,802	24,834	51,802
Own shares	9	-	-	-	-
Share premium	9	33,139	60,747	33,139	60,747
Reserves	9	77,317	241,523	75,659	220,967
Retained earnings		74,940	38,883	33,440	27,045
		210,230	392,955	167,072	360,561
Non-controlling interests		589	23,241	-	-
Total equity		210,819	416,196	167,072	360,561
Liabilities
Non-current liabilities
Non-current borrowings		98,083	98,737	-	-
Financial lease liabilities		214	423	-	-
Government grants		68	152	-	-
Provisions		-	396	-	-
Deferred income tax liability		14,020	15,116	-	-
Other non-current liabilities		2,719	4,831	-	-
Total non-current liabilities		115,104	119,655	-	-
Current liabilities
Current portion of non-current borrowings		2,333	6,071	-	-
Current portion of financial lease liabilities		20	206	-	-
Current borrowings	12	2,017	549	5,767	9,125
Trade payables		8,203	28,373	57	55
Income tax payable		2	114	-	-
Provisions		-	227	-	-
Advances received		2,432	4,272	-	-
Other current liabilities	15	26,434	14,246	21,667	2,452
Total current liabilities		41,441	54,058	27,491	11,632
Total liabilities		156,545	173,713	27,491	11,632
Total equity and liabilities		367,364	589,909	194,563	372,193

(the end)

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AB INVALDA LT

CONSOLIDATED AND COMPANY'S INTERIM CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013

(all amounts are in LTL thousand unless otherwise stated)

Consolidated and Company's statements of changes in equity

Group	Equity attributable to equity holders of the parent
	Share capital	Own shares	Share premium	Reserves			Retained earnings (accumulated deficit)	Subtotal	Non-controlling interests
				Fair value reserves	Legal and other reserves	Own share reserve
Balance as at 31 December 2012 (audited)	51,802	-	60,747	-	241,489	34	38,883	392,955	23,241
Net (loss) for the 9 months of 2013	-	-	-	-	-	-	99,508	99,508	1,010
Other comprehensive income (loss) for the 9 months of 2013	-	-	-	-	-	(44)	-	(44)	(10)
Total comprehensive income (loss) for the 9 months of 2013	-	-	-	-	-	(44)	99,508	99,464	1,000
Share of movements in equity of associates	-	-	-	-	-	-	493	493	-
Share based payments	-	-	-	-	-	-	-	-	118
Dividends of subsidiaries	-	-	-	-	-	-	-	-	(311)
Changes in reserves	-	-	-	-	23	-	(23)	-	-
Minority of subsidiaries acquired	8	-	-	-	-	-	(4)	(4)	(196)
Acquisition of subsidiaries	8	-	-	-	-	-	-	-	7
Disposal of subsidiaries	-	-	-	-	9	-	(9)	-	-
Own shares buy back	9	-	(51,845)	-	-	-	-	(51,845)	-
Decrease of share capital	9	(6,279)	51,845	-	-	(65,592)	-	(20,026)	-
Changes due to split-off	9	(20,689)	-	(27,608)	-	(98,602)	-	(63,908)	(210,807)
Balance as at 30 September 2013 (unaudited)	24,834	-	33,139	-	77,327	(10)	74,940	210,230	589

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AB INVALDA LT

CONSOLIDATED AND COMPANY'S INTERIM CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013

(all amounts are in LTL thousand unless otherwise stated)

Consolidated and Company's statements of changes in equity (cont'd)

Group	Equity attributable to equity holders of the parent
	Share capital	Own shares	Share premium	Reserves			Retained earnings (accumulated deficit)	Subtotal	Non-controlling interests
				Fair value reserves	Legal and other reserves	Foreign currency translation reserve
Balance as at 31 December 2012 (audited)	51,660	-	34,205	-	20,299	-	280,046	386,210	29,151
Net (loss) for the 9 months of 2012	-	-	-	-	-	-	24,257	24,257	5,183
Income and expenses for the 9 months of 2012 recognised directly in equity	-	-	-	-	-	33	-	33	8
Total comprehensive income for the I half year of 2012	-	-	-	-	-	33	24,257	24,290	5,191
Share of movements in equity of associates	-	-	-	-	-	-	605	605	-
Dividends of subsidiaries	-	-	-	-	-	-	-	-	(10,828)
Share based payments	-	-	-	-	-	-	-	-	(133)
Changes in reserves	-	-	-	-	275,028	-	(275,028)	-	-
Decrease of share capital	9	(5,756)	59,659	-	-	(53,903)	-	-	-
Own shares buy back	9	-	(59,659)	-	-	-	-	(59,659)	-
Minority of subsidiaries acquired	8	-	-	-	-	-	2,312	2,312	(2,326)
Conversion of convertible bonds into share capital	11	5,898	26,542	-	-	-	6,098	38,538	-
Balance as at 30 June 2012 (unaudited)	57,802	-	60,747	-	241,424	33	38,290	392,296	21,055

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS

ENDED 30 SEPTEMBER 2013

(all amounts are in LTL thousand unless otherwise stated)

Consolidated and Company's statements of changes in equity (cont'd)

Company	Share capital	Own shares	Share premium	Reserves		Retained earnings (accumulated deficit)	Total
				Legal reserve	Reserve of purchase of own shares
Balance as at 31 December 2012 (audited)	51,802	-	60,747	5,756	215,211	27,045	360,561
Profit (loss) for the 9 months of 2013	-	-	-	-	-	87,004	87,004
Own shares buy back	9	-	(51,845)	-	-	-	(51,845)
Cancellation of own shares bought back	9	(6,279)	51,184	-	-	(65,592)	(20,026)
Split-off	9	(20.689)	-	(27,608)	(2,616)	(77,100)	(80,609)
Balance as at 30 September 2013 (unaudited)	24,834	-	33,139	3,140	72,519	33,440	167,072
Company	Share capital	Own shares	Share premium	Reserves		Retained earnings (accumulated deficit)	Total
---	---	---	---	---	---	---	---
				Legal reserve	Reserve of purchase of own shares
Balance as at 31 December 2011 (audited)	51,660	-	34,205	-	-	274,870	360,735
Profit (loss) for the 9 months of 2013	-	-	-	-	-	24,156	24,156
Increase of share capital	11	5,898	-	26,542	-	6,098	38,538
Decrease of share capital	9	(5,756)	59,659	-	-	(53,903)	-
Own shares buy back	9	-	(59,659)	-	-	-	(59,659)
Changes in reserves	-	-	-	5,756	269,114	(274,870)	-
Balance as at 30 September 2012 (unaudited)	51,802	-	60,747	5,756	215,211	30,254	363,770

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS

ENDED 30 SEPTEMBER 2013

(all amounts are in LTL thousand unless otherwise stated)

Consolidated and Company's statements of cash flows

	Group		Company
	Nine months of 2013	Nine months of 2012	Nine months of 2013	Nine months of 2012
	Unaudited	Unaudited	Unaudited	Unaudited
Cash flows from (to) operating activities
Net profit (loss) for the period	100,518	29,440	87,004	24,156
Adjustments for non-cash items and non-operating activities:
Valuation (gain) loss, net	(323)	9,223	-	-
Depreciation and amortization	5,112	7,488	31	57
(Gain) loss on disposal of property, plant and equipment	29	(13)	-	-
Realized and unrealized loss (gain) on investments	(680)	(8,218)	(680)	(5,528)
(Gain) loss on disposal of subsidiaries and associates	(1,333)	(1,282)	517	1,052
Gain on the split-off	(89,358)	-	(67,784)	-
Share of net loss (profit) of associates and joint ventures	(6,052)	(9,387)	-	-
Interest (income)	(1,260)	(2,943)	(5,315)	(9,101)
Interest expenses	1,682	3,165	278	781
Deferred taxes	667	1,452	611	1,700
Current income tax expenses	353	2,428	4	3
Allowances	(404)	(970)	(448)	12,642
Change in provisions	(29)	(42)	-	-
Share based payment	118	(133)	-	-
Dividend (income)	(71)	(18)	(16,841)	(28,758)
Loss (gain) from other financial activities	(29)	124	(24)	124
	8,940	30,314	(2,647)	(2,872)
Changes in working capital:
(Increase) decrease in inventories	(2,804)	4,543	-	-
Decrease (increase) in trade and other receivables	(2,524)	(9,020)	(3,218)	-
Decrease (increase) in other current assets	(360)	(1,982)	9	(9)
(Decrease) increase in trade payables	(202)	(4,239)	-	(621)
(Decrease) increase in other current liabilities	189	863	(13)	(614)
Cash flows (to) from operating activities	3,239	20,479	(5,869)	(4,116)
Income tax (paid)	(109)	(295)	(4)	-
Net cash flows (to) from operating activities	3,130	20,184	(5,873)	(4,116)

(cont'd on the next page)

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS

ENDED 30 SEPTEMBER 2013

(all amounts are in LTL thousand unless otherwise stated)

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

	Group		Company
	Nine months of 2013	Nine months of 2012	Nine months of 2013	Nine months of 2012
Cash flows from (to) investing activities	Unaudited	Unaudited	Unaudited	Unaudited
(Acquisition) of tangible non-current assets (except investment properties)	(7,171)	(7,129)	(79)	(18)
Proceeds from sale of non-current assets (except investment properties)	41	102	-	-
(Acquisition) of investment properties	(1,552)	(3,168)	-	-
Proceeds from sale of investment properties	1,338	882	-	-
(Acquisition) and establishment of subsidiaries, net of cash acquired	8	(6)	-	(4,336)
Proceeds from sales of subsidiaries, net of cash disposed	(64)	-	74	-
(Acquisition) of associates and joint ventures	8	(12,070)	-	(12,070)
Proceeds from sales of associates and joint ventures	8	-	3,797	-
Cash of the subsidiaries left the Group in the split-off	(23,402)	-	-	-
Loans (granted)	(9,978)	(744)	(17,548)	(30,980)
Repayment of granted loans	41,351	41,599	51,514	53,424
Transfer to/from term deposits	13,419	79,640	-	48,339
(Acquisition) of and proceeds from sales held to maturity investments	-	-	-	-
Dividends received	60	15	950	28,756
Interest received	1,116	4,475	2,246	7,518
(Acquisition) of and proceeds from sales of held-for-trade and available-for-sale investments	20,271	6,358	20,271	64
Net cash flows (to) investing activities	23,353	125,827	41,022	110,900
Cash flows from (to) financing activities
Cash flows related to Group owners
(Acquisition) of non-controlling interests	(200)	(14)	-	(155)
(Acquisition) of own shares	9	(51,845)	(59,659)	(51,845)
Payment according to terms of split-off	(13,200)	-	(13,200)	-
Dividends (paid) to equity holders of the parent	(553)	(78)	(553)	(78)
Dividends (paid) to non-controlling interests	(311)	(9,807)	-	-
	(66,109)	(69,558)	(65,598)	(59,892)
Cash flows related to other sources of financing
Proceeds from loans	19,119	4,092	23,410	150
(Repayment) of loans	(22,226)	(22,349)	(19,846)	(6)
Interest (paid)	(1,623)	(2,400)	(281)	-
Financial lease (payments)	(146)	(265)	-	-
Transfer (to)/from restricted cash	(1,127)	(779)	-	-
	(6,003)	(21,701)	3,283	144
Net cash flows (to) from financial activities	(72,112)	(91,259)	(62,315)	(59,748)
Impact of currency exchange on cash and cash equivalents	24	(109)	24	(124)
Net (decrease) increase in cash and cash equivalents	(45,605)	54,643	(27,142)	46,912
Cash and cash equivalents at the beginning of the period	5	56,092	21,346	33,530
Cash and cash equivalents at the end of the period	5	10,487	75,989	6,388

(the end)

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013

(all amounts are in LTL thousand unless otherwise stated)

Notes to the interim condensed financial statements

1 General information

AB Invalda LT (hereinafter the Company) is a joint stock company registered in the Republic of Lithuania on 20 March 1992. The address of the office is as follows:

Šeimyniškių str. 1A,
Vilnius,
Lithuania.

AB Invalda LT is incorporated and domiciled in Lithuania. AB Invalda LT is one of the major Lithuanian investment companies whose primary objective is to steadily increase investor equity value. For the purpose of achieving this objective the Company actively manages its investments, exercising control or significant influence over target businesses. The Company gives the priority to furniture manufacturing, real estate, agriculture, IT infrastructure and facilities management segments.

In respect of each business the Company defines its performance objectives, sets up the management team, participates in the development of the business strategy and monitors its implementation. AB Invalda LT plays an active role in making the decisions on strategic and other important issues that have an effect on the value of the Group companies.

The Company's shares are traded on the Baltic Main List of NASDAQ OMX Vilnius.

2 Basis of preparation and accounting policies

Basis of preparation

The interim condensed financial statements for the nine months ended 30 September 2013 have been prepared in accordance with IAS 34 Interim Financial Reporting.

The interim condensed financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual financial statements as at 31 December 2012.

Significant accounting policies

The accounting policies adopted in the preparation of the interim condensed financial statements are consistent with those followed in the preparation of the Group's and Company's annual financial statements for the year ended 31 December 2012, except adoption of new Standards and Interpretations as of 1 January 2013, noted below.

Amendments to IAS 1 Presentation of Financial Statements – Presentation of Items of Other Comprehensive Income

The amendments change the disclosure of items presented in other comprehensive income. It require entities to separate items presented in other comprehensive income into two groups, based on whether or not they may be reclassified to profit or loss in the future. The suggested title used by IAS 1 has changed to 'statement of profit or loss and other comprehensive income'. The amended standard change presentation of Group's financial statements, but have no impact on the Group's financial position or performance.

IAS 19 Employee Benefits (Amendment)

The amendment makes significant changes to the recognition and measurement of defined benefit pension expense and termination benefits, and to the disclosures for all employee benefits. The standard requires recognition of all changes in the net defined benefit liability (asset) when they occur, as follows: (i) service cost and net interest in profit or loss; and (ii) remeasurements in other comprehensive income. The Group has to recognise all actuarial gains and losses in other comprehensive income, not in the profit or loss as currently, and to present service cost and net interest in separate line in the income statement. The amendment has no impact in the Group's financial statements for the nine months ended 30 September of 2013.

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013

(all amounts are in LTL thousand unless otherwise stated)

2 Basis of preparation and accounting policies

Amendments to IAS 12 Deferred Tax: Recovery of Underlying Assets

The amendment introduced a rebuttable presumption that an investment property carried at fair value is recovered entirely through sale. This presumption is rebutted if the investment property is held within a business model whose objective is to consume substantially all of the economic benefits embodied in the investment property over time, rather than through sale. SIC-21, Income Taxes – Recovery of Revalued Non-Depreciable Assets, which addresses similar issues involving non-depreciable assets measured using the revaluation model in IAS 16, Property, Plant and Equipment, was incorporated into IAS 12 after excluding from its scope investment properties measured at fair value. The amendment has no impact in the Group's financial statements for the nine months ended 30 September of 2013.

IFRS 13 Fair value measurement

IFRS 13 aims to improve consistency and reduce complexity by providing a revised definition of fair value, and a single source of fair value measurement and disclosure requirements for use across IFRSs. The amendment has no impact in the Group's financial statements for the nine months ended 30 September of 2013.

Amendments to IFRS 7 Financial Instruments: Disclosures - Offsetting Financial Assets and Financial Liabilities

The amendment requires disclosures that will enable users of an entity's financial statements to evaluate the effect or potential effect of netting arrangements, including rights of set-off. The amendment will have an impact on disclosures but will have no effect on measurement and recognition of financial instruments. The amendment has no impact in the Group's financial statements for the nine months ended 30 September of 2013.

Improvements to IFRS (issued in May 2012)

The improvements consist of changes to five standards.

• IFRS 1 First-time adoption of International Financial Reporting Standards was amended to (i) clarify that an entity that resumes preparing its IFRS financial statements may either repeatedly apply IFRS 1 or apply all IFRSs retrospectively as if it had never stopped applying them, and (ii) to add an exemption from applying IAS 23, Borrowing costs, retrospectively by first-time adopters.
• IAS 1 Presentation of Financial Statements was amended to clarify that explanatory notes are not required to support the third balance sheet presented at the beginning of the preceding period when it is provided because it was materially impacted by a retrospective restatement, changes in accounting policies or reclassifications for presentation purposes, while explanatory notes will be required when an entity voluntarily decides to provide additional comparative statements.
• IAS 16 Property, Plant and Equipment was amended to clarify that servicing equipment that is used for more than one period is classified as property, plant and equipment rather than inventory.
• IAS 32 Financial Instruments: Presentation was amended to clarify that certain tax consequences of distributions to owners should be accounted for in the income statement as was always required by IAS 12.
• IAS 34 Interim Financial Reporting was amended to bring its requirements in line with IFRS 8. IAS 34 will require disclosure of a measure of total assets and liabilities for an operating segment only if such information is regularly provided to chief operating decision maker and there has been a material change in those measures since the last annual financial statements.

As a result of the amendment, the Group now also includes disclosure of total segment liabilities.

3 Seasonality of operations and other recurring discrepancies in quarters

Historically information technology segment earned a bigger revenue and operational profit in the 4th quarter. The agriculture segment earned a bigger operational profit in the 2nd and 3rd quarter. The investment properties usually are revaluated in the Group at the end of financial year (in previous year the revaluation was made on 30 September 2012).

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013

(all amounts are in LTL thousand unless otherwise stated)

4 Segment information

The Board of Directors monitors the operating results of its business units of the Group separately for the purpose of making decisions about resource allocations and performance assessment. Segment performance is evaluated based on net profit or loss and it is measured on the same basis as net profit or loss in the financial statements. Group financing (including finance costs and finance revenue) and income taxes are allocated between segments as they are identified on basis of separate legal entities. Consolidation adjustments and eliminations are not allocated on a segment basis. Segment assets are measured in a manner consistent with that of the financial statements. All assets are allocated between segments, because segments are identified on basis of separate legal entities.

For management purposes, the Group is organised into following operating segments based on their products and services:

Furniture production

The furniture segment includes flat-pack furniture mass production and sale. Due to split-off of the Company the subsidiary operating in this segment became an associate of the Group.

Real estate

The real estate segment is involved in investment in commercial real estate and agricultural land. The subsidiaries which activities have been management and administration, intermediation in buying, selling and valuation of real estate, and in the geodesic measurement of land were transferred from the Group due to the split-off of the Company.

Agriculture

Agricultural activities include the primary crop and livestock (milk) production, grain processing and agricultural services. The segment's companies sell plant protection products, fertilizers, seeds, compound feed, feed supplements, veterinary products, buying grain, providing grain and other raw materials drying, cleaning, handling and storage services.

Information technology infrastructure

The information technology infrastructure segment is involved in offering IT infrastructure strategy, security and maintenance solutions, supplies of all hardware and software needed for IT infrastructure solutions of any size and in the development and implementation of software for government register systems, including consultation.

Facilities management

The facilities management segment is involved in facilities management of dwelling-houses, commercial and public real estate properties, as well as construction management.

Other production and service segments

The other production and service segment is involved in, road signs production, wood manufacturing. The entity which activities are growing and trading of ornamental trees and shrubs was transferred from the Group according to the terms of the split-off of the Company. The Group also presents investment, financing and management activities of the holding company in this segment, as these are not analysed separately by the Board of Directors.

Segment revenue, segment expense and segment result include transfers between business segments. Those transfers are eliminated in column 'Inter-segment transactions and consolidation adjustments'. Capital expenditure consists of additions of property, plant and equipment, intangible assets and investment properties including assets from the acquisition of subsidiaries.

The granted loans from the Company are allocated to other production and services segment. The impairment losses for these loans are allocated to a segment to which the loans are granted initially.

16

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS

ENDED 30 SEPTEMBER 2013

(all amounts are in LTL thousand unless otherwise stated)

4 Segment information (cont'd)

The following table present revenues and profit information regarding the Group's business segments for the 9 months ended 30 September 2013:

| 9 months ended
30 September 2013 | Furniture
production | Real estate | Agriculture | Information
technology | Facility
management | Other
production
and service | Inter-segment
transactions
and
consolidation
adjustments | Total
continuing
operations |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Revenue | | | | | | | | |
| Sales to external customers | - | 19,681 | - | 31,024 | 10,281 | 7,041 | - | 68,027 |
| Inter-segment sales | - | 347 | - | 60 | 638 | 2 | (1,047) | - |
| Total revenue | - | 20,028 | - | 31,084 | 10,919 | 7,043 | (1,047) | 68,027 |
| Results | | | | | | | | |
| Other income | - | 226 | - | 16 | 28 | 4,569 | (3,474) | 1,365 |
| Net losses from fair value
adjustment on investment
property | - | 323 | - | - | - | - | - | 323 |
| Net gain (losses) on disposal of
subsidiaries, associates and
joint ventures | - | - | - | - | 1,333 | - | - | 1,333 |
| Gain on the split-off | - | - | - | - | - | 89,358 | - | 89,358 |
| Net changes in fair value on
financial assets | - | - | - | - | - | 680 | - | 680 |
| Segment expenses | - | (21,435) | - | (31,522) | (10,973) | (10,936) | 4,521 | (70,345) |
| Impairment, write-down and
provision | - | 546 | - | (167) | 30 | 24 | - | 433 |
| Share of profit (loss) of the
associates and joint ventures | 1,841 | (95) | 4,513 | - | - | (207) | - | 6,052 |
| Profit (loss) before income tax | 1,841 | (407) | 4,513 | (589) | 1,337 | 90,531 | - | 97,226 |
| Income tax | - | 66 | - | (6) | (193) | (537) | - | (670) |
| Discontinued operation** | 3,962 | - | - | - | - | - | - | 3,962 |
| Net profit (loss) for the period | 5,803 | (341) | 4,513 | (595) | 1,144 | 89,994 | - | 100,518 |
| Attributable to: | | | | | | | | |
| Equity holders of the parent | 4,699 | (341) | 4,513 | (515) | 1,144 | 90,008 | - | 99,508 |
| Non-controlling interests | 1,104 | - | - | (80) | - | (14) | - | 1,010 |

*The Group sold a dormant company UAB Cmanagement for the LTL 1. Since the equity was negative, the Group earned a profit. Without this one-time transaction the facility management segment would have suffered a loss of LTL 189 thousand.

** AB Vilniaus Baldai became an associate of the Group due to the split-off of the Company. According to IFRS 5 the results of the subsidiary until the split-off are presented as discontinued operations as a single amount.

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS

ENDED 30 SEPTEMBER 2013

(all amounts are in LTL thousand unless otherwise stated)

4 Segment information (cont'd)

The following table present revenues and profit information regarding the Group's business segments for the 9 months ended 30 September 2012:

| 9 months ended
30 September 2012 | Furniture
production | Real estate | Agriculture | Information
technology | Facility
management | Other
production
and service | Inter-segment
transactions
and
consolidation
adjustments | Total
continuing
operations |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Revenue | | | | | | | | |
| Sales to external customers | - | 25,552 | - | 23,828 | 8,437 | 8,883 | - | 66,700 |
| Inter-segment sales | - | 887 | - | 139 | 1,127 | 2 | (1,838) | 317 |
| Total revenue | - | 26,439 | - | 23,967 | 9,564 | 8,885 | (1,838) | 67,017 |
| Results | | | | | | | | |
| Other income | - | 30 | - | 204 | 95 | 7,623 | (5,205) | 2,747 |
| Net losses from fair value
adjustment on investment
property | - | (9,223) | - | - | - | - | - | (9,223) |
| Net gain (losses) on disposal of
subsidiaries, associates and joint
ventures | - | (755) | - | - | - | 2,037 | - | 1,282 |
| Net changes in fair value on
financial assets | - | - | - | - | - | 8,218 | - | 8,218 |
| Segment expenses | - | (28,449) | - | (25,847) | (9,973) | (12,849) | 7,043 | (70,075) |
| Impairment, write-down and
provision | - | 803 | - | - | 42 | 88 | - | 933 |
| Share of profit (loss) of the
associates and joint ventures | - | (181) | 9,538 | - | - | 30 | - | 9,387 |
| Profit (loss) before income tax | - | (11,336) | 9,538 | (1,676) | (272) | 14,032 | - | 10,286 |
| Income tax | - | 1,289 | - | 30 | 45 | (1,759) | - | (395) |
| Discontinued operation | 19,549 | - | - | - | - | - | - | 19,549 |
| Net profit (loss) for the period | 19,549 | (10,047) | 9,538 | (1,646) | (227) | 12,273 | - | 29,440 |
| Attributable to: | | | | | | | | |
| Equity holders of the parent | 14,102 | (10,046) | 9,538 | (1,351) | (227) | 12,241 | - | 24,257 |
| Non-controlling interests | 5,447 | (1) | - | (295) | - | 32 | - | 5,183 |

The following table represents segment assets of the Group operating segments as at 30 September 2013 and 31 December 2012:

| Segment assets | Furniture
production | Real
estate | Agriculture | Information
technology | Facility
management | Other
production
and service | Elimination | Total continuing
operations |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| At 30 September 2013 | 76,545 | 183,006 | 12,204 | 26,847 | 9,669 | 107,833 | (48,740) | 367,364 |
| At 31 December 2012 | 98,504 | 275,954 | 48,114 | 27,236 | 9,853 | 249,236 | (118,988) | 589,909 |

The following table represents segment liabilities of the Group operating segments as at 30 September 2013 and 31 December 2012:

| Segment liabilities | Furniture
production | Real
estate | Agriculture | Information
technology | Facility
management | Other
production
and service | Elimination | Total continuing
operations |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| At 30 September 2013 | - | 142,649 | - | 26,103 | 6,429 | 30,104 | (48,740) | 156,545 |
| At 31 December 2012 | 26,495 | 219,277 | - | 25,453 | 7,654 | 13,822 | (118,988) | 173,713 |

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013

(all amounts are in LTL thousand unless otherwise stated)

5 Cash and cash equivalents

	Group		Company
	As at 30 September 2013	As at 31 December 2012	As at 30 September 2013	As at 31 December 2012
Cash at bank	10,354	32,194	6,388	9,719
Cash in hand	15	15	-	-
Cash in transit	118	72	-	-
Term deposits with the maturity up to 3 months	-	23,811	-	23,811
	10,487	56,092	6,388	33,530

On 30 September 2013, the Group and the Company have placed also with the banks term deposits with the maturity more than 3 months.

	Group	Company
Deposit's certificate of AB bankas Snoras	10,910	10,910
Accumulated interest of term deposits	55	55
Less allowance for impairment as consequence of AB bankas Snoras insolvency	(10,965)	(10,965)
	-	-

As at 31 December 2012, the Group and the Company have placed term deposits at banks with the maturity of more than 3 months.

	Group	Company
Deposits with the maturity between 3 and 6 months	9,020	-
Deposits with the maturity more than 6 months	12,316	-
Deposit's certificate of AB Bankas Snoras	20,000	20,000
Accumulated interest	182	141
Less allowance for impairment as consequence of AB Bankas Snoras insolvency	(20,100)	(20,100)
	21,418	41

6 Dividends

In 2013 and 2012 dividends were not declared.

7 Income tax

	Group		Company
	Nine months of 2013	Nine months of 2012	Nine months of 2013	Nine months of 2012
Components of income tax expense
Current income tax charge	(28)	(2,459)	(4)	(3)
Prior year current income tax correction	-	31	-	-
Deferred income tax income (expense)	(642)	(1,452)	(611)	(1,700)
Income tax (expenses) income charged to the income statement	(670)	(3,880)	(615)	(1,703)

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013

(all amounts are in LTL thousand unless otherwise stated)

8 Investment into subsidiaries and associates

During the 1st Quarter of 2013 the subsidiaries, which invest in agricultural land, and two subsidiaries, which hold investments, were split-off as preparing of the Company's split-off. Therefore, the Group now has these subsidiaries UAB Kvietnešys, UAB Kvietukas, UAB Laukaitis, UAB Lauknešys, UAB Vasarojus, UAB Žiemkentys, UAB Žiemgula, UAB Žemėja, UAB Žemgalė, UAB Deltuvis, UAB Justum.

In January 2013 the Group acquired 5.27 % of the shares of AB NRD for LTL 200 thousand. The value of the additional interest acquired was LTL 196 thousand. The negative difference equal to LTL 4 thousand between the consideration and the value of the interest acquired has been recognised directly to the shareholders equity.

In April 2013 the Group acquired 70% of the shares of 360° Smart Consulting Ltd for LTL 12 thousand to implement the projects of the information technology segment in Tanzania as resident. Later the entity changed its name to Norway Registers Development East Africa Limited. The net assets of the entity was LTL 25 thousand, the non-controlling interest was increased by LTL 7 thousand due to the acquisition.

On 31 May 2013 the split-off of AB Invalda was completed, due to this the Group have changed significantly. The split-off is described in detail in note 9.

In May 2013 the 100% of the shares of UAB Cmanagement was sold for the LTL 1. The Company suffered loss of LTL 367 thousand on the sale of the shares, because there was recognised impairment of LTL 367 thousand for this investment in previous years, therefore, the impairment was reversed and overall impact on profit or loss of the Company was equal to nil. The Group had earned the profit of LTL 1,333 thousand, because the equity of the subsidiary was negative. Also the liquidation of Invalda Lux S.a.r.l., which was established in Luxembourg, was completed in May. The Company recognised the loss of LTL 150 thousand in the caption "Gains (losses) on disposal of subsidiaries, associates and joint ventures", but the impairment of the same amount was reversed.

In August 2013 the Group has established new subsidiary UAB NRD CS in the information technology infrastructure segment by investing LTL 10 thousand.

Additional acquisition of AB Vilniaus Baldai

The official tender offer to buy up shares in AB Vilniaus Baldai was implemented from 15 July 2013 until 29 July 2013, during which the Company acquired 6.05% of shares (235,093 shares) of AB Vilniaus Baldai with par value of LTL 4, for the total amount of LTL 12,070 thousand. On the basis of preliminary assessment the fair value of acquired part of identifiable net assets is LTL 8,710 thousand. In the carrying amount of associates is recognised goodwill of LTL 3,360 thousand. After the tender offer implementation AB Invalda LT owns 45.40 percent of shares of AB Vilniaus Baldai.

Reconstruction of companies investing in agricultural land

On 31 July 2013 the Company has acquired 100% of shares of UAB Puškaitis, UAB Žemynėlė, UAB Žemgalė, UAB Kvietukas, UAB Vasarojus, UAB Lauknešys from subsidiary UAB Aktyvus Valdymas for LTL 4,166 thousand.

In order to reconstruct parcels owned by the companies investing in agricultural land so that each company manages geographically close parcels located in one or several regions of Lithuania and at the same time to simplify management of the land and reduce operating expenses, the companies' splitting up by mode of parcelling out was initiated. For this purpose, 17 companies were incorporated in August 2013 by investing LTL 170 thousand: UAB Avižėlė, UAB Beržytė, UAB Dirvolika, UAB Duonis, UAB Kupiškio Žemgalė (after reorganization was renamed to UAB Žemgalė), UAB Linaziedė, UAB Marijampolės Puškaitis (after reorganization was renamed to UAB Puškaitis), UAB Pakruojo Kvietukas (after reorganization was renamed to UAB Kvietukas), UAB Pakruojo Laukaitis (after reorganization was renamed to UAB Laukaitis), UAB Panevėžio Vasarojus (after reorganization was renamed to UAB Vasarojus), UAB Pasvalio Lauknešys (after reorganization was renamed to UAB Lauknešys), UAB Pasvalio Žiemkentys (after reorganization was renamed to UAB Žiemkentys), UAB Pušaitis, UAB Sėja, UAB Vilkaviškio Ekotra (after reorganization was renamed to UAB Ekotra), UAB Vilkaviškio Žemynėlė (after reorganization was renamed to UAB Žemynėlė) and UAB Žalvė. On 30 September 2013 mentioned above entities were taken over the assets and liabilities of the nine companies, which have ended activities as consequence of reorganisation: UAB Ekotra, UAB Puškaitis, UAB Žemynėlė, UAB Žemgalė, UAB Kvietukas, UAB Laukaitis, UAB Vasarojus, UAB Lauknešys, UAB Žiemkentys.

20

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AB INVALDA LT
INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013
(all amounts are in LTL thousand unless otherwise stated)

8 Investment into subsidiaries and associates (cont'd)

Acquisition and disposals during nine months of 2012

During the nine months ended 30 September 2012 the Company and the Group has invested LTL 155 thousand to increase share capital of Invalda Lux S.a.r.l. and LTL 12,700 thousand additionally to increased share capital of UAB Naujoji Švara converting loans granted to shares. During 1st Quarter of 2012 UAB Justiniškių Valda and UAB Justiniškių Aikštelė, which owns investment property previously owned by UAB Jurita, were separated from UAB Jurita. The new separated entities are assigned to real estate segment. The Group has established two real estate investment companies by investing by cash LTL 30 thousand: UAB Lauksėja (investment in the agricultural land), UAB Danės Gildija (project of apartments building in Klaipėda) and UAB Kopų Vėtrungės (project of apartments building in Nida). Also investment properties with carrying value of LTL 7,970 thousand, located in Klaipėda, were invested into share capital of UAB Danės Gildija, and investment properties with carrying value of LTL 3,990 thousand, located in Nida, were invested into share capital of UAB Kopų Vėtrungės.

In April 2012 the Company has acquired 24% of shares of UAB Aikstentis (currently a dormant entity attributed to the real estate segment). Amount of LTL 2,309 thousand was attributed to the non-controlling interest, so it was reduced by this amount, and, respectively, retained earnings attributable to equity holders of the parent were increased. The reason for a large attribution was that in 2010 prospectively applying the new requirement of IAS 27 net losses equal to LTL 2,343 thousand were not attributed to the non-controlling interest of UAB Aikstentis, and due to the sale of UAB Broner (previous subsidiary of UAB Aikstentis) net profit of LTL 2,316 thousand was attributed to the non-controlling interest.

In June 2012 the loans with amount of LTL 807 thousand granted to real estate entity SIA Uran, operating in Latvia, were converted into 50% shares of the entity. These shares were sold for LTL 52 thousand. In the profit (loss) statement a loss of 755 thousand was recognised.

AB Umega

On 12 January 2012, the sale of 29.27% of shares of AB Umega according to the agreement signed on 30 November 2011 was completed. Price for the shares sold equal to LTL 3,745 thousand. The Group has earned a profit of LTL 2,037 thousand. In the Company statements, the price for the shares sold was equal to the carrying amount of the investments. In the caption "Net gains (losses) on disposal of subsidiaries, associates and joint ventures" of the Company's income statements was presented loss of LTL 298 thousand (the price of the shares was less as initial acquisition cost). Therefore, in the caption "Impairment, write-down and provisions" of the Company's income statements was presented impairment reversal of the same amount - LTL 298 thousand.

9 Split-off, discontinued operation, acquisition of own shares

On 20 November 2012 the Extraordinary General Shareholders Meeting of the Company approved drawing up of the terms of the Company's split-off and authorized the Board to prepare the terms of split-off. On 13 February 2013 the split-off terms were published to public. The Extraordinary General Shareholders Meeting approved the terms of the Company's split-off on 9 April 2013. The new name of the Company after the split-off is AB Invalda LT. The name of new established company after split-off is AB Invalda Privatus Kapitalas. In the split-off approximately 45.45 percent of the total assets, liabilities and the equity of the Company was allocated to AB Invalda Privatus Kapitalas. According to the split-off terms some assets were allocated not proportionally (in full to one or other side), some assets was allocated proportionally (investment into the furniture production and agriculture segments). The entities that invest into agricultural land were split-off in the 1st Quarter 2013 into separate legal entities (see Note 8). New entities were allocated in full to one or other side. Remaining assets were allocated under there principle that transferred assets to AB Invalda Privatus Kapitalas would constitute approximately 45.45 percent of total assets of the Company as of the day of executing of the Transfer – acceptance certificates.

Split-off of the Company was ended on 31 May 2013.

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013

(all amounts are in LTL thousand unless otherwise stated)

9 Split-off, discontinued operation, acquisition of own shares (cont'd)

During the six month ended 30 June 2013 the Company implemented two share buy-back. The first share buy-back was implemented from 19 February until 5 March through the market of official offer. Maximum number of shares to be acquired was 5,180,214. Share acquisition price established at LTL 8,287 per share. All offered shares were bought-back, the Company has paid for own shares LTL 42,950 thousand, including brokerage fees. The second share buy-back was implemented from 10 April until 24 May through the market of official offer according to the split-off terms. The shareholders holding the shares with the nominal value of less than 1/10 of the authorized capital of the Company, except the shareholders whose rights to sell shares to the Company during the split – off were limited according to the split – off terms, had a right within 45 days after approval of the split – off terms by the general meeting of shareholders to request that their shares would be redeemed by the Company (until 24 May 2013). The number of shares acquired was 1,099,343. Share acquisition price established at LTL 8,076 per share. The company has paid for own shares LTL 8,889 thousand, including brokerage fees.

According to the terms of the split-off 6,279,557 acquired own shares was cancelled, the reserve for the acquisition of own shares was decreased by LTL 45,566 thousand. Also according to the terms of the split-off 20,689,038 shares, which was owned by the shareholders, which received in exchange shares of AB Invalda Privatus Kapitalas, was cancelled.

After above mentioned transactions the shareholders of the Company were (by votes):

	Number of votes
	held	Percentage
UAB LJB Investments	7.563.974	30.46%
Mrs. Irena Ona Mišeikiene	6.217.082	25.04%
UAB Lucrum Investicija	5.601.621	22.55%
Mr. Darius Šulnis	2.219.762	8.94%
Other minor shareholders	3.231.112	13.01%
Total	24.833.551	100.00%

From 24 September 2013 until 7 October 2013 the third share buy-back was implemented. Maximum number of shares to be acquired was 2,000,000. Share acquisition price established at EUR 2.90 (LTL 10.01) per share. A liability of LTL 20,026 thousand for the value of own shares purchase amount was recognised in the statements of financial position of the Company and the Group. The share buy-back results are described in Note 17.

Share buy-back in 2012

The share buy-back program was exercised on 2 – 15 May 2012. 10 percent of own shares – 5,755,794 shares were acquired for LTL 59,659 thousand, including brokerage fees (for each share – LTL 10.358). Acquired own shares do not have voting rights.

On 24 May 2012 the shareholders of the Company decided to reduce the share capital to LTL 51,802,146 by annulling own shares.

On 6 August 2012, the new version of the Articles of Association of the Company was registered. According to the Articles of Association the share capital was reduced from LTL 57,557,940 to LTL 51,802,146 by annulling 5,755,794 ordinary registered shares with par value of LTL 1, which the Company had acquired. So the decision of shareholder meeting, occurred on 24 May 2012, was implemented.

22

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013

(all amounts are in LTL thousand unless otherwise stated)

9 Split-off, discontinued operation, acquisition of own shares (cont'd)

Below the split-off of the balance sheet of the Company as at 31 May 2013 according to the split-off terms is presented:

	The Company before split-off	AB Invalda LT	AB Invalda Privatus Kapitalas
Non-current asset
Property, plant and equipment	151	43	108
Intangible assets	11	11	-
Investments into subsidiaries	97,653	71,837	25,816
Investments into associates and joint ventures	631	-	631
Investments available-for-sale	1,817	1,705	112
Non-current loans granted	96,683	56,223	40,460
Trade and other receivables long term	2,405	2,405	-
Deferred income tax asset	16,977	9,237	7,740
Total non-current assets	216,328	141,461	74,867
Current asset
Trade and other receivables	791	791	-
Current loans granted	69,893	18,834	51,059
Prepaid income tax	13	13	-
Prepayments and deferred charges	111	28	83
Financial assets at fair value through profit loss	12,647	3,852	8,795
Cash and cash equivalents	25,873	12,673	13,200
Total current assets	109,328	36,191	73,137
TOTAL ASSETS	325,656	177,652	148,004
Equity
Share capital	45,523	24,834	20,689
Share premium	60,747	33,139	27,608
Reserves	175,401	95,685	79,716
Retained earnings	28,221	15,395	12,826
Total equity	309,892	169,053	140,839
Current liabilities
Current borrowings	13,907	6,988	6,919
Trade payables	120	56	64
Other current liabilities	1,737	1,555	182
Total current liabilities	15,764	8,599	7,165
Total liabilities	15,764	8,599	7,165
TOTAL EQUITY AND LIABILITIES	325,656	177,652	148,004

According to IFRIC 17 the gain on the split-off has to be recognised in the profit or loss as difference between fair value and carrying amount of the transferred assets. Based on the preliminary assessment of the fair value of the transferred assets the Company was recognised gain of LTL 67,784 thousand. The main impact of the gain was resulted from the valuation of $32.78\%$ of shares of AB Vilniaus Baldai as 6 month average market price in the NASDAQ OMX exchange. Due to assessment of shares of AB Vilniaus Baldai the Company recognised gain of LTL 59,094 thousand. Another part of the gain was related with transfer of the entities, investing in the agricultural land, and entity, through which was invested in UAB Litagra.

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013

(all amounts are in LTL thousand unless otherwise stated)

9 Split-off, discontinued operation, acquisition of own shares (cont'd)

The assets and liabilities of the Group entities and of the Company transferred from the Group according to the terms of the split-off and recognised in the statement of financial position are follows (inter-group balances are eliminated):

	Carrying amount at the transfer date
Intangible assets	1,013
Investment properties	57,914
Property, plant and equipment	44,071
Investment into associates and joint ventures	24,509
Investments available-for-sale	1,154
Deferred income tax assets	9,690
Inventories	38,075
Trade and other receivables	21,386
Loans granted	936
Prepaid income tax	1,445
Prepayments and deferred charges	2,642
Financial assets at fair value through profit loss	8,795
Term deposits	7,958
Cash and cash equivalents	36,602
Total assets	256,190
Deferred income tax liability	(1,506)
Borrowings	(1,438)
Trade payables	(19,824)
Income tax payable	(78)
Advance received	(2,392)
Other liabilities	(9,596)
Total liabilities	(34,834)
Total net assets	221,356

The Group has recognised gain on the split-off of LTL 89,358 thousand, from which gain on loss of control of AB Vilniaus Baldai was LTL 89,123 thousand. The calculation of it is presented below:

The fair value of transferred shares of AB Vilniaus Baldai	65,411
The carrying amount of transferred part of the net assets	24,906
Gain on the transferred shares	40,505
Fair value of retained shares of AB Vilniaus Baldai	78,514
The carrying amount of retained part of the net assets	29,896
Gain on remeasuring remaining interest to fair value	48,618
Gain total	89,123

AB Vilniaus Baldai became an associate, which deemed acquisition cost in the Group is equal to the fair value of retained shares of AB Vilniaus Baldai (LTL 78,514 thousand). On the basis of preliminary assessment the fair value of retained part of identifiable net assets is LTL 55,819 thousand. In the carrying amount of associates is recognised goodwill of LTL 22,695 thousand. After split-off the Group has owned 39.35 percent of AB Vilniaus Baldai shares.

24

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013

(all amounts are in LTL thousand unless otherwise stated)

9 Split-off, discontinued operation, acquisition of own shares (cont'd)

Due to split-off the Group transferred 16.76 percent of UAB Litagra shares. On the basis of the preliminary assessment, the fair value of UAB Litagra is equal to its carrying amount, therefore, any gain was not recognised in profit or loss of the Group. The Group has also transferred these entities: UAB Dizaino Institutas, UAB IBC Logistika, UAB Minijos Valda, UAB Riesés Investicija, UAB Naujoji Svara, UAB Ineturas, UAB Elniakampio Namai, UAB projektavimo firma Saistas, UAB BNN, UAB Trakų Kelias, UAB Inreal Valdymas, UAB Inreal, UAB Inreal GEO, UAB Aikstentis. UAB Ente, UAB Justum, UAB Kvietnešys, UAB Šimtamargis, UAB Žemvesta, UAB Deltuvis, UAB Investicijų Tinklas, UAB Fortina, UAB Via Solutions, AB Invetex, UAB Agrobité, UAB Lauko Gélininkystės Bandymų Stotis, UAB Žemėpatis, UAB IŽB 1, UAB Lauksėja, UAB Žiemgula, UAB Žemėja, UAB Kopų Vėtrungės, UAB Danės Gildija, UAB Justiniškių Valda, UAB Justiniškių Aikštelė.

Since due to the split –off was loss of control of AB Vilniaus Baldai, therefore according to IFRS 5, the results of this subsidiary is presented as discontinued operations. Below is presented detailed profit or loss caption of discontinued operation:

	Group
	Nine months of 2013	Nine months of 2012
Sales revenue	56,285	178,825
Other income	631	776
Changes in inventories of finished goods, work in progress and residential real estate	(143)	(3,329)
Raw materials and consumables	(36,457)	(114,779)
Employee benefits expenses	(7,912)	(20,967)
Impairment, write-down and provisions	-	79
Premises rent and utilities	(1,757)	(3,567)
Depreciation and amortization	(2,029)	(4,266)
Repairs and maintenance cost of premises	(1,912)	(3,860)
Other expenses	(2,390)	(5,858)
Operating profit (loss)	4,316	23,054
Finance cost	(3)	(20)
Profit (loss) before income tax	4,313	23,034
Income tax credit (expense)	(351)	(3,485)
Profit (loss) for the period	3,962	19,549

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AB INVALDA LT
INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013
(all amounts are in LTL thousand unless otherwise stated)

10 Other revenues and expenses

10.1. Net changes in fair value on financial assets

	Group		Company
	Nine months of 2013	Nine months of 2012	Nine months of 2013	Nine months of 2012
Gain (loss) from shares of Trakcja	(437)	5,776	(437)	5,776
Other	1,117	2,442	1,117	(248)
Net gain (loss) from financial assets at fair value, total	680	8,218	680	5,528
Realised (loss) gain from available-for-sale investments	-	-	-	-
	680	8,218	680	5,528

10.2. Finance expenses

	Group		Company
	Nine months of 2013	Nine months of 2012	Nine months of 2013	Nine months of 2012
Interest expenses	(1,679)	(3,145)	(244)	(781)
Other finance expenses	(41)	(129)	(34)	-
	(1,720)	(3,274)	(278)	(781)

9.3. Other income

	Group		Company
	Nine months of 2013	Nine months of 2012	Nine months of 2013	Nine months of 2012
Interest income	1,204	2,501	5,315	9,101
Dividend income	71	18	16,841	28,758
Other income	90	228	40	4
	1,365	2,747	22,196	37,863

11 The conversion of the convertible bonds

The application from the bondholders to convert LTL 32,400 thousand par value bonds (par value of one bond is LTL 100) into the shares of the Company was received on 28 March 2012. The bonds were converted into 5,898,182 shares of LTL 1 par value on 30 March 2012, when new By-laws of the Company were registered. After the conversion, share capital of the Company was increased by LTL 5,898 thousand up to LTL 57,558 thousand and divided into 57,557,940 shares of LTL 1 par value. The conversion price of new shares is LTL 5.50 per share. During the $1^{\text{st}}$ half year of 2013 the bond holders paid back of earlier received interest of LTL 4,788 thousand and had forfeited the accrued interest of LTL 2,386 thousand as at 30 March 2012. All these amounts were reversed through equity. The current income tax expenses of LTL 1,076 thousand was presented in the equity also. So total positive impact for the Company's and the Group's equity was amounted to LTL 6,098 thousand.

12 Borrowings

After split-off the Company together with AB Invalda Privatus Kapitalas had announced tender offer to buy up shares of AB Vilniaus Baldai. Since according to the law it is required to accumulate all money, which could to require, if all remaining shareholder of AB Vilniaus Baldai would be respond to the tender offer, the loan of LTL 17,000 thousand was took out from DNB bank. After implementation of the tender offer AB Invalda LT the loan was repaid.

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013

(all amounts are in LTL thousand unless otherwise stated)

13 Earnings per share

Basic earnings per share amounts are calculated by dividing net profit for the year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year.

The weighted average number of shares for the nine months ended 30 September 2013 and 2012 were as follows:

Calculation of weighted average for the nine months ended 30 September 2013	Number of shares (thousand)	Par value (LTL)	Issued/273 (days)	Weighted average (thousand)
Shares issued as at 31 December 2012	51,802	1	273/273	51,802
Acquired own shares as at 8 March 2013	(5,180)	1	206/273	(3,909)
Acquired own shares as at 27 May 2013	(1,099)	1	126/273	(507)
Decrease of shares capital as at 31 May 2013	(20,689)	1	122/273	(9,246)
Shares issued as at 30 September 2013	24,834	-	-	38,140
Calculation of weighted average for the nine months ended 30 September 2012	Number of shares (thousand)	Par value (LTL)	Issued/274 (days)	Weighted average (thousand)
Shares issued as at 31 December 2011	51,660	1	274/274	51,660
Shares issued as at 30 March 2012	5,898	1	184/274	3,961
Own shares acquired on 18 May 2012	(5,756)	1	135/274	(2,836)
Shares issued as at 30 September 2012	51,802	1	-	52,785

The following table reflects the income and share data used in the basic earnings per share computations:

	Group		Company
	Nine months of 2013	Nine months of 2012	Nine months of 2013	Nine months of 2012
Net profit (loss), attributable to equity holders of the parent for basic earnings	99,508	22,205	87,004	24,156
Weighted average number of ordinary shares (thousand)	38,140	52,785	38,140	52,785
Basic earnings (deficit) per share (LTL)	2.61	0.42	2.28	0.46

During the nine months of 2013 diluted earnings per share of the Group and Company is the same as basic earnings per share.

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013

(all amounts are in LTL thousand unless otherwise stated)

13 Earnings per share (cont'd)

The following table reflects the share data used in the diluted earnings per share computations for the nine months ended 30 September 2012:

	Number of shares (thousand)	Issued/274 (days)	Weighted average (thousand)
Weighted average number of ordinary shares for basic earnings per share	-	-	52,785
Potential shares from convertible bond of LTL 25 million (issued on 1 December 2008)	4,545	90/274	1,493
Potential shares from convertible bond of LTL 7.44 million (issued on 8 January 2010)	1,353	90/274	444
Weighted average number of ordinary shares for diluted earnings per share	-	-	54,722

The following table reflects the income data used in the diluted earnings per share computations for the nine months ended 30 September 2012:

	Group Nine months of 2012	Company Nine months of 2012
Net profit (LTL thousand), attributable to the equity holders of the parent for basic earnings	24,257	24,156
Interest on convertible bond	768	768
Net profit (LTL thousand), attributable to equity holders of the parent for diluted earnings	25,025	24,924
Weighted average number of ordinary shares (thousand)	54,722	54,722
Diluted earnings(deficit) per share (LTL)	0.46	0.46

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AB INVALDA LT
INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013
(all amounts are in LTL thousand unless otherwise stated)

14 Financial assets and fair value hierarchy

The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities;

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly;

Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data.

The following table presents the group's assets and liabilities that are measured at fair value at 30 September 2013:

	Level 1	Level 2	Level 3	Total balance
Assets
Shares of Trakcja	893	-	-	893
Held-for-trade securities	3,823	-	-	3,823
Total Assets	4,716	-	-	4,716
Liabilities	-	-	-	-

The following table presents the group's assets and liabilities that are measured at fair value at 31 December 2012:

	Level 1	Level 2	Level 3	Total balance
Assets
Shares of Trakcja	9,958	-	-	9,958
Held-for-trade securities	7,748	15,268	-	23,016
Total Assets	17,706	15,268	-	32,974
Liabilities	-	-	-	-

During the nine months ended 30 September 2013, there were no transfers between Level 1 and Level 2 fair value measurements. Financial assets in Level 2 was sold in 1st Quarter 2013.

29

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013

(all amounts are in LTL thousand unless otherwise stated)

15 Other current liabilities

	Group		Company
	As of 30 September 2013	As of 31 December 2012	As of 30 September 2013	As of 31 December 2012
Employee benefits	2,573	7,095	173	386
Liability of the purchase of own shares (Note 9)	20,026	-	20,026	-
Other	3,835	7,151	1,468	2,066
Total other current liabilities	26,434	14,246	21,667	2,452

16 Related party transactions

Receivables from related parties are presented in gross amount (without allowance).

The Company's transactions with related parties during the nine months of 2013 and related quarter-end balances were as follows:

Nine months of 2013 Company	Sales to related parties	Purchases from related parties	Receivables from related parties	Payables to related parties
Loans and borrowings	4,751	175	71,243	5,765
Rent and utilities	-	70	-	-
Dividends	16,770	-	15,880	-
Other	27	80	154	15
	21,548	325	87,277	5,780
Liabilities to shareholders and management	-	-	-	-

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013

(all amounts are in LTL thousand unless otherwise stated)

16 Related party transactions (cont'd)

The Company's transactions with related parties during the nine months of 2012 and related quarter-end balances were as follows:

Nine months of 2012 Company	Sales to related parties	Purchases from related parties	Receivables from related parties	Payables to related parties
Loans and borrowings	7,606	13	171,723	10,211
Rent and utilities	-	114	-	3
Dividends	28,740	-	-	-
Other	-	14	223	14
	36,346	141	171,946	10,228
Liabilities to shareholders and management	-	-	-	-

The Group's transactions with related parties during the nine months of 2013 and related quarter-end balances were as follows:

Nine months of 2013 Group	Sales to related parties	Purchases from related parties	Receivables from related parties	Payables to related parties
Loans and borrowings	255	-	22,300	-
Real estate and facility management income	2	-	-	-
Roads and bridges construction segment	7	-	-	-
IT segment	38	-	107	-
Dividends	-	-	15,880	-
Other	-	3	277	33
	302	3	38,564	33
Liabilities to shareholders and management	85	-	-	-

In June 2013 the Group has granted loan of LTL 9 million to the Company's shareholder, which was fully repaid on July 2013.

The Group's transactions with related parties during the nine months of 2012 and related quarter-end balances were as follows:

Nine months of 2012 Group	Sales to related parties	Purchases from related parties	Receivables from related parties	Payables to related parties
Loans and borrowings	36	-	6,560	-
Rent and utilities	-	-	-	-
Other	-	-	-	-
	36	-	6,560	-
Liabilities to shareholders and management	280	-	698	-

During the nine months of 2012 the Group and the Company has accrued interest expenses of LTL 768 thousand for owners of convertible bonds, which become the shareholder of the Company. Upon conversion the accrued interest was reversed.

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AB INVALDA LT

INTERIM CONSOLIDATED AND COMPANY'S CONDENSED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013

(all amounts are in LTL thousand unless otherwise stated)

17 Events after the reporting period

As mentioned in Note 9 the Company implemented the share buy-back from 24 September 2013 until 7 October 2013. During it 1,842,553 shares (7.42% of share capital) was acquired for LTL 18,465 thousand, including brokerage fees. The main shareholders had also sold shares to the Company. The acquired shares were settled on 10 October 2013.

After above mentioned transactions the shareholders of the Company are (by votes):

	Number of votes held	Percentage
UAB LJB Investments	6,939,824	30.19%
Mrs. Irena Ona Mišeikiene	5,678,582	24.70%
UAB Lucrum Investicija	5,264,271	22.90%
Mr. Darius Šulnis	2,219,762	9.65%
Other minor shareholders	2,888,559	12.56%
Total	22,990,998	100.00%